My Internship Report (2) Hina Masood

NATIONAL BANK OF PAKISTAN
Table of Contents
CHAPTER 1
INTRODUCTION 4
Evolution of Banking-------------------------------------------------------------------------------------------------------------------5 Modern Banking-------------------------------------------------------------------------------------------------------------------------5 Definition of Bank-----------------------------------------------------------------------------------------------------------------------6 Types of Bank----------------------------------------------------------------------------------------------------------------------------6 Banking Channels-----------------------------------------------------------------------------------------------------------------------8 Banks in the Economy----------------------------------------------------------------------------------------------------------------10
CHAPTER 2
BANKING IN PAKISTAN 12
History of Banking in Pakistan-----------------------------------------------------------------------------------------------------13 Efforts towards Islamic Banking--------------------------------------------------------------------------------------------------15
CHAPTER 3
NATIONAL BANK OF PAKISTAN (NBP) 16
Introduction of an organization---------------------------------------------------------------------------------------------------17 Golden History of NBP----------------------------------------------------------------------------------------------------------------18 Phases of NBP --------------------------------------------------------------------------------------------------------------------------20 Present Status of NBP-----------------------------------------------------------------------------------------------------------------21 Awards and Achievement-----------------------------------------------------------------------------------------------------------22 Vision-------------------------------------------------------------------------------------------------------------------------------------25 Mission-----------------------------------------------------------------------------------------------------------------------------------26 Core Values & Goals-------------------------------------------------------------------------------------------------------------------27 Credit Rating----------------------------------------------------------------------------------------------------------------------------28 Market Recognization----------------------------------------------------------------------------------------------------------------29
CHAPTER 4
SWOT ANALYSIS OF NATIONAL BANK OF PAKISTAN 30
SWOT Analysis Strengths------------------------------------------------------------------------------------------------------------31 SWOT Analysis Weaknesses--------------------------------------------------------------------------------------------------------33 SWOT Analysis Opportunities------------------------------------------------------------------------------------------------------35 SWOT Analysis Threats--------------------------------------------------------------------------------------------------------------36
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CHAPTER 5
MANAGEMENT STRUCTURE 38
Corporate Profile----------------------------------------------------------------------------------------------------------------------38 Board of Directors---------------------------------------------------------------------------------------------------------------------39 Senior Management-------------------------------------------------------------------------------------------------------------------39 Overseas Operation Management-------------------------------------------------------------------------------------------------40 NBP Head office Setup----------------------------------------------------------------------------------------------------------------41 Management Hierarchy--------------------------------------------------------------------------------------------------------------43 Branch Organogram------------------------------------------------------------------------------------------------------------------45
CHAPTER 6
POLICY FORMULATION PROCESS 46
Managerial Policies-------------------------------------------------------------------------------------------------------------------46 Operation Policies---------------------------------------------------------------------------------------------------------------------47 Credit Policies --------------------------------------------------------------------------------------------------------------------------47 Human Resource Policies-----------------------------------------------------------------------------------------------------------48
CHAPTER 7
CATEGORIES OF NBP BRANCHES 49
Employees in various Departments----------------------------------------------------------------------------------------------50 Job Description-------------------------------------------------------------------------------------------------------------------------51 Salary Conditions----------------------------------------------------------------------------------------------------------------------57 Human Resource-----------------------------------------------------------------------------------------------------------------------58 Career Ladder-------------------------------------------------------------------------------------------------------------------------- 61 Performance Appraisal--------------------------------------------------------------------------------------------------------------62
CHAPTER 8
MANAGEMENT STYLES 63
CHAPTER 9
MARKETING 64
Marketing Mix--------------------------------------------------------------------------------------------------------------------------74 Products----------------------------------------------------------------------------------------------------------------------------------75 Price-------------------------------------------------------------------------------------------------------------------------------------100 Place-------------------------------------------------------------------------------------------------------------------------------------123 Promotion------------------------------------------------------------------------------------------------------------------------------133 HINA MASOOD O7 Page 2
CHAPTER 10
NBP ISLAMIC BANKING 138
CHAPTER 11
FINANCIAL ANALYSIS 144
Horizontal Analysis of Balance Sheet------------------------------------------------------------------------------------------147 Vertical Analysis of Balance Sheet----------------------------------------------------------------------------------------------149 Index Analysis------------------------------------------------------------------------------------------------------------------------151 Liquidity Ratio------------------------------------------------------------------------------------------------------------------------153 Portfolio Management Ratio------------------------------------------------------------------------------------------------------154 Capital Adequacy Ratio-------------------------------------------------------------------------------------------------------------156 Financial Leverage Ratio-----------------------------------------------------------------------------------------------------------158 Profitability Ratio--------------------------------------------------------------------------------------------------------------------160
CHAPTER 12
DEPARTMENTS 170
General Banking----------------------------------------------------------------------------------------------------------------------171 Account Opening Department----------------------------------------------------------------------------------------------------171 Cash Department---------------------------------------------------------------------------------------------------------------------182 Clearance-------------------------------------------------------------------------------------------------------------------------------186 Billing & Government Receipt/Payment--------------------------------------------------------------------------------------190 Remittances---------------------------------------------------------------------------------------------------------------------------191 Computer Section--------------------------------------------------------------------------------------------------------------------196 Credits----------------------------------------------------------------------------------------------------------------------------------200
CHAPTER 13
STRATEGY FORMULATION 216
Input Stage Internal Factor Evaluation Matrix (IFE) ---------------------------------------------------------------------------------220 External Factor Evaluation Matrix (EFE)-------------------------------------------------------------------------------- 222 Competitive Profile Matrix (CPM)------------------------------------------------------------------------------------------224 Matching Stage SWOT Matrix Model SPACE Matrix Boston Consulting Group Matrix (BCG) Decision Stage Quantitative Strategic Planning Matrix (QSPM)
ANNEXURE
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EVOLUTION OF BANKING
Banks are in some senses a very old profession, but the modern way of banking affecting the whole of society so much is of course very new. The first banks were probably religious temples of the ancient world. In them was stored gold in the form of easy-to-carry compressed plates. Their owners justly felt that temples were the safest places to store their gold as they were constantly attended, well built and were sacred, thus deterring would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests to merchants.
MODERN BANKING:
Banking in its modern form and structure started in Britain when many of the Lombardy merchants came to England in the 14THCentury and settled in the parts of the city of the London now called Lombard Street. The King Edward-III established the office of Royal Exchanger in 1565 for changing foreign money at a profit for the benefit of crown. At that time moneychangers were already called bankers, though the term "bank" usually referred to their offices, and did not carry the meaning it does today. Around the time of Adam Smith (1776) there was a massive growth in the banking industry. Within the new system of ownership and investment, money holders were able to reduce the State's intervention in economic affairs, remove barriers to competition, and, in general, allow anyone willing to work hard enough-and who also has access to capital-to become a capitalist. It wasn't until over 100 years after Adam Smith, however, that US companies began to apply his policies in large scale and shift the financial power from England to America. By the end of 2000, a year in which a record level of financial services transactions with a market value of $10.5 trillion occurred, the top ten banks commanded a market share of more than 80% and the top five, 55%. Of the top ten banks ranked by market share, seven were large universal-type banks (three American and four European), and the remaining three were large U.S. investment banks who between them accounted for a 33% market share. This growth and opportunity also led to an unexpected outcome: entrance into the market of other financial intermediaries: nonbanks. Large corporate players were beginning to find their way into the
financial service community, offering competition to established banks. The main services offered included insurances, pension, mutual, money market and hedge funds, loans and credits and securities. Indeed, by the end of 2001 the market capitalization of the world's 15 largest financial services providers included four nonbanks.
DEFINITIONS OF BANK
Banks are guardian distributor of money Banks do business of money. Rather banks do business of lending & borrowing money Banker or a banker or a person or a company carrying on the business receiving moneys and collecting drafts for customers subject to the obligation of honouring cheques drawn upon them from time to time by the customer to the extent of the amount available on their current accounts
TYPES OF BANKS
Commercial banks:
The term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.
Community banks:
Locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners.
Community development banks:

Regulated banks that provide financial services and credit to under-served markets or populations.
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Postal saving banks:

Saving banks associated with national posting systems.
Private banks:
Banks that manage the assets of high net worth individuals.
Offshore banks:
Banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks.
Savings banks:
In Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralised distribution network, providing local and regional outreachand by their socially responsible approach to business and society.
Ethical banks:
Banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments.
Types of investment banks: Investment banks: Investment banks "underwrite" (guarantee the sale of) stock and bond issues,
trade for their own accounts, make markets, and advise corporations on capital market activities such as mergers and acquisitions.
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Merchant banks:
Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.
Other Types of Banks: Islamic banks:

Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around several well-established principles based on Islamic canons. All banking activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank earns profit (mark-up) and fees on the financing facilities that it extends to customers.
Banking channels
Banks offer many different channels to access their banking and other services:
BRANCH
A branch banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers.
ATM
ATM is a computerized telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank.
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MAIL
Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers.
TELEPHONE BANKING
Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity).
ONLINE BANKING
Online banking is a term used for performing transactions, payments etc. over the Internet through a
bank, credit union or building society's secure website.
MOBILE BANKING
Mobile banking is a method of using one's mobile phone to conduct simple banking transactions by
remotely linking into a banking network.
VIDEO BANKING
Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a videoconference enabled bank branch.
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Banks in the economy

Role in the money supply
A bank raises funds by attracting deposits, borrowing money in the inter-bank market,or issuing financial instruments in the money market or a capital market.The bank then lends out most of these funds to borrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank.This behaviour is called Fractional-Reserve Bnking and it is a central issue of monetary policy.
Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record $74.2 trillion. This follows a 5.4% increase in the previous year. EU banks held the largest share, 53%, up from 43% a decade earlier. . The growth in Europes share was mostly at the expense of Japanese banks, whose share more than halved during this period from 21% to 10%. The share of US banks remained relatively stable at around 14%. Most of the remainder was from other Asain and Europeon countries. The United States has by far the most banks in the world, both in terms of institutions (7,540 at the end of 2005) and branches (75,000). This is an indicator of the geography and regulatory structure of the USA, resulting in a large number of small to medium-sized institutions in its banking system. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branches-more than double the 15,000 branches in the UK.
Bank Regulation
Bank regulations are a form of government regulation, which subject banks to certain requirements, restrictions and guidelines aiming to uphold the soundness and integrity of the financial system. The combination of the instability of banks as well as their important facilitating role in the economy led
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to banking being thoroughly regulated. The amount of capital a bank is required to hold is a function of the amount and quality of its assets.
Another reason banks are thoroughly regulated is that ultimately, no government can allow the banking system to fail. There is almost always a lender of last resort-in the event of a liquidity crisis, some element of government will step in to lend banks enough money to avoid bankruptcy. The Banking industry main obstacles to increasing profits are existing regulatory burdens, new government regulation, and increasing competition from non-traditional financial institutions.
Bank crisis
Banks are susceptible to many forms of risk which have triggered occasional systemic crises. These include liquidity risk (where many depositors may request withdrawals beyond available funds), credit
risk (the chance that those who owe money to the bank will not repay it), and interest rate risk (the
possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on its deposits than it receives on its loan). Banking crises have developed many times throughout history, when one or more risks have materialized for a banking sector as a whole. Prominent examples include the bank run that occurred during the Great Depression, the U.S. Savings and Loan crisis in the 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the subprime mortgage crisis in the 2000s.
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HISTORY OF BANKING IN PAKISTAN

The partition was announced on June 3, 1947 and August 15, 1949 was fixed as the date on which independence was to take effect. It was decided that the Reserve Bank of India should continue to function in the dominion of Pakistan until September 30, 1948 due to administrative and technical difficulties involved in immediately establishing and operating a Central Bank. At the time of Partition, total number of Banks in Pakistan was 38; out of these the commercial banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank of India. The total deposits in Pakistani Banks stood at Rs.880 million where as the advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the order for the establishment of State Bank of Pakistan on 1st of July 1948.In 1949, National Bank of Pakistan was established. It started with six offices in Former East Pakistan. There were 14 Pakistani scheduled commercial banks operating in the country on December 1973, the name of these were:
1. 2. 3. 4. 5. 6. 7. 8. 9. National Bank of Pakistan Habib Bank Limited Habib Bank Overseas Limited United Bank Limited Muslim Commercial Bank Limited Commerce Bank Limited Australia Bank Limited Standard Bank Limited Bank of Bahawalpur Limited
10. Premium Bank Limited 11. Pak Bank Limited 12. Lahore Commercial Bank Limited 13. Sarhad Bank Limited 14. Punjab Provincial Co-operative Bank Limited
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The Pakistan Banking Council prepared Banks amalgamation schemes in 1974 for amalgamation of Smaller Banks with the five bigger banks of Country. These five banks are as under: 1. National Bank of Pakistan 2. Habib Bank Limited 3. United Bank Limited 4. Muslim Commercial Bank Limited 5. Allied Bank Limited
So through the Nationalization of Bank Act 1974, the State Bank of Pakistan, all the commercial banks incorporated in Pakistan and carrying on Business in or outside the country were brought under the government ownership with effect from Jan 1, 1974. The ownership, control and management of all the Banks in Pakistan stood transferred to and vested in the Federal Government. The Finance Minister announced plans to start Islamic Banking System in Pakistan in the Budget speech on June 26, 1980, but it could not be possible till August 2003.
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EFFORTS TOWARDS ISLAMIC BANKING IN PAKISTAN

Pakistan was created in the name of Islam on August 14, 1947.But since then the interest is paying the cardinal role in resourse allocation of the economy.The Banking system in Pakistan based on Interest Divergences with islamic ideology and is forbidden by Almighty Allah and His Prophet Muhammad(SAW). Any government till now in the country except President Zia-ul-Haq did not dare to change the welldigged system based on interest in Banking in Pakistan. The only step taken under this direction is starting of PLS Deposits from January 1,1982.Only PLS saving account PLS term deposits shall be accepted on profit and loss sharing basis.The banks were allowed to meet the working capital requirements of their clients on the basis of Musharika, and Leasing and Hire purchase.Beside it, different efforts are made time by time in this respect but could not be acted upon at all. Recently in June 2002,the Shariah Applet Bench of Pakistan issued an order to all the banks in Pakistan to change the interest-based Banking system to Islamic Modes but the lawyer from the government of Pakistan challanged it by saying that if any affair is in the favor of the public of the country and is also admired by the public then it cannot be abondoned by the government.So this issue is still not resolved.
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Introduction of an Organization
National Bank of Pakistan is a government bank. Its principal activities are to provide commercial banking and related services in Pakistan and overseas. The Group handles treasury transactions for the Government of Pakistan as agent to the State Bank of Pakistan. It has its head office in Karachi. The Bank has 1254 domestic branches. In addition, NBP has 22 overseas branches and one representative office including the Export Processing Zone Branch. The Bank also provides services as trustee to National Investment Trust including safe custody of securities on behalf of NIT. National Bank of Pakistan maintains its position as Pakistan premium Bank determined to set high standards of Achievements. It is the major business partner of Government of Pakistan with special emphasis on fostering Pakistans economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices.
CURRENT POSITION OF NBP:

The current position of NBP with regards to price, earnings, dividends are as follows:
Current Price (6/30/2009):
67.03
(Figures in Pakistan Rupees)
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Golden History of National Bank of Pakistan

In 1949 (September) U.K devalued its currency, India followed suit but Pakistan did not. India said we had contravened the agreement of keeping both currencies at par. We said we had not done that, India had done it arbitrarily without consulting us. On October 3, 1949 the two central banks were to announce the new par value of both the currencies but India denied a day earlier. India also froze our trade-balance surplus that is still an unsettled dispute. India also withdraws the Marwari Merchants who were employed annually for movement of Jute crop by financing it. There being no jute industry, prices fell sharply, foreign banks and foreign merchants stood aside and an agrarian unrest was threatening. Two ordinances were, therefore, issued 1. Jute Board Establishment Ordinance 2. NBP Ordinance dated 08-11-1949 National Bank of Pakistan was established on November 9, 1949 under the National Bank of Pakistan Ordinance 1949 in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian Rupee in 1949.Initially the bank was established with the objective to extend credit to the agriculture sector. The normal procedure of establishing a banking company under the companies Law was set aside and a bank was established through the promulgation of an ordinance due to the crisis situation that had developed with regard to financing of Jute trade. The bank commenced its operations from November 20, 1949 at six important jute centres in the East Pakistan and directed its resources in financing of jute crop. The Banks Karachi and Lahore offices were subsequently opened in December 1949.The nature of responsibilities of the Bank is different and unique from other Banks/Financial institutions. The Bank Act as the agent to the State Bank of Pakistan for handling Provincial/Federal Government receipts and payments on their behalf.
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Mr. Ghulam Farooq was Chairman Jute Board and Mr.Mumtaz Hassan was Chairman NBP.Until June, 1950, NBP remained exclusively in jute operations, there after other commodities were also taken up. After that Mr. Zahid Husain. Governor SBP assumed additional charge also as Chairman NBPs Board of Directors and Mr. M.A Mohair became its first M.D. In 1952 NBP replaced Imperial Bank of India. This arrangement was negotiated by Mr. Mumtaz Hassan as acting Governor of SBP. In 1962, when Mumtaz Hassan became the M.D (He had already served NBP for 10 years as its Chairman of Government Director), the number of Branches had increased from 6 to 239 and deposits from Rs. 50 million (5 Crore) to 1 billion and 60 million (106 crore), profit from 3 million (3 lac) to 21 million (2.1 crore) and the staff increased from 380 to 7091, as compared to 1949-50. In December 1966 its 600TH branch was opened raising the deposits to 2.31 bn. And staff to 14,963.Upto 1965, the shareholders had received 225% of their original investment. Now it has more than 21549 employees 1537 branches and Rs.208283 million deposits. The Bank has also played an important role in financing the country growing trade, which has expanded through the years as diversification took place. Today the Bank finances imports/exports business to the tune of Rs. 62.17 billion, where as in 1960, financing under this head was only Rs. 1.54 billion. The field is being de-layered to improve customer services and enable faster decision making. As a result of this de-layering zones have been eliminated and the numbers of regions have been increased. Organizational Hierarchy at the regional level has been restructured and operational and business activities have been completely separated. This separation will improve communication, decision making and promote teamwork.
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PHASES OF NBP
National Bank of Pakistan also has suffered from four different phases of banking in Pakistan like other banks.
Commercialization
(Profit Oriented 1946-1973)
National Bank of Pakistan was established in 1949 to promote jute and cotton production. At the time of independence we had no jute factory but in 1957 just within 10 years, Pakistan successfully established 6 jute factories through NBP assistance. Pakistan had just 16 cotton factories which increased within 10years up to 70. It was a big success of National Bank of Pakistan during commercialization era.
Nationalization
(Socio-Economic Development 1974-1991)
In the first phase of nationalization which remains from 1.1.1974 to 30.6.1974, The National Bank of Pakistan was merged with Bank of Behawalpur. This was done to give proper attention towards socioeconomic development & structural improvements.
ISLAMIZATION
(Islamic Revolution 1977-2004)
National bank of Pakistan introduced three types of profit & loss accounts during this era. Zakat & Usher ordinance was introduced. Non interest bearing accounts were introduced.
Privatization
(Free Market economy 1991-2004)
NBP suffered massive losses in past, particularly in 1996, posted USD 17.7 million in pre-tax profits in 2000 and doubled this figure in 2001
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PRESENT STATUS OF NBP

The new management team having extensive experience of management of large financial institutions both within and outside the country is expected to further enhance the profitability and operational efficiency of the Bank. National Bank of Pakistan is the largest commercial bank operating in Pakistan. It has redefined its role and has moved from a public sector organisation into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen. In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. The Bank's financial performance has been remarkable. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration. It ranges from providing credit to the un-banked market segment under NBP Karobar, to small and medium enterprises, to agricultural loans, to large corporate customers.
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AWARDS AND ACHIEVEMENTS:

National Bank has earned recognition and numerous awards internationally. "Best Foreign Exchange Bank 2008 awarded by world's leading financial journal Global Finance."
Best Return on Capital for 2006 amongst all Banks in Asia Banker Magazine in July 2007 World's leading financial journal, Global Finance has named NBP as the Best Emerging Market Bank from Pakistan for the year 2006 . "Best Foreign Exchange Bank Pakistan award for the year 2006 by world's leading financial journal Global Finance . Due to consistent improvement in NBP's Core Profitability , Asset Quality and Economic Capitalization in recent years ,Moody's Investors Service upgraded the Financial Strength Rating (FSR) rom E+ to D-, in November 2005 . Best Foreign Exchange Bank Pakistan award for the year 2005 by world's leading financial journal Global Finance . Best Bank - Pakistan award for the year 2005 by world's leading financial journal Global Finance.
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The Asian Banker, a reputable financial journal, has published the report of its research project on the ranking of 300 of Asia 's Strongest Banks based on a 11-Dimensional Dynamic Scoring Criteria has adjudged National Bank of Pakistan as the Strongest Bank in Pakistan . On the basis of overall financial performance during 2004, NBP has been listed Amongst top 1000 banks in the world and Number 1 Bank in Pakistan by the prestigious Banker Magazine in its issue of July 2005 . The Banker Magazine in July 2005 recognized NBP as the 10th Best Bank in terms of Profit on Capital' in the world . Bank of the Year awarded for the year 2005 by the world renowned The Banker magazine owned by the Financial Times Group, London. On an all Pakistan basis National Bank of Pakistan was awarded the Kissan Times Award for the year 2005 by the Prime Minister , Mr. Shaukat Aziz, for its services in the Agriculture Sector .World's leading financial journal, Global Finance in an exclusive survey has named NBP as the Best Emerging Market Bank from Pakistan for the year 2005 . Bank of the Year award for the year 2004 by the world renowned The Banker magazine owned by the Financial Times Group , London . Euromoney Magazine, a leading and prestigious journal, published from London , UK , in its issue of March 2005 has published Moody's Investors Service rankings in which NBP is the only Pakistani bank which has been ranked among the Top 100 banks of Asia for it performance in the fiscal year 2003 WEBCOP-AASHA, an alliance against gender discrimination at workplace, presented a Recognition Award to National Bank of Pakistan on December 18, 2004 for having a Gender Sensitive Management . In May 2004, NBP's standalone long-term rating was upgraded by JCR-VIS Credit Rating Agency to AA (double A) from AA -( double A minus) with stable outlook, while standalone short-term
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rating was maintained at A-1+(A one plus). This is now the best rating for a local commercial bank in Pakistan . In its issue of March 2004, Global Finance has also declared NBP as The Best Foreign Exchange Bank in Pakistan . The Banker Magazine in July 2003 recognized NBP as the bank with the highest return on capital in Asia and No.8 in the world. World's leading financial journal, Global Finance after a worldwide survey declared NBP in its issue of May 2003 as one of the best banks in the emerging markets. Bank of the Year awarded for the year 2002 by the world renowned The Banker magazine owned by the Financial Times Group, London Bank of the Year awarded for the year 2001 by the world renowned The Banker magazine owned by the Financial Times Group, London
President's Awards
1) Mr. S. Ali Raza, Chairman & President, NBP was awarded The Asian Banker Leadership Achievement Award 2007 by Asian Banker ( an internationally reputed Financial Journal) in its issue of June 2007 2) Mr. S. Ali Raza Chairman & President, NBP, was conferred Sitara-i-Imtiaz by the President of Pakistan , General Pervaiz Musharraf on August 14, 2005 3) Business Week of The McGraw Hill Companies in its July 11,2005 edition has adjudged Mr. S. Ali Raza, Chairman President, NBP as one of the twenty five Leaders of Asia at the & Forefront of Change and has identified them as Stars of Asia including the President of Indonesia 4) Mr. S. Ali Raza's (Chairman & President, NBP) capabilities were also recognized by the Institute of Bankers in Pakistan when he was awarded a gold medal in 2003 .
Vision
To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.
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Mission
NBP will aspire to the values that make NBP truly the Nations Bank, by: Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices Maximizing stakeholders value Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate
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CORE VALUES
Highest standards of Integrity Institutionalizing team work and performance culture Excellence in service Advancement of skills for tomorrows challenges Awareness of social and community responsibility Value creation for all stakeholders
GOALS
To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products
Credit Rating
State Bank of Pakistan has been endeavouring to promote self-discipline in the financial markets of Pakistan through transparency and sufficient disclosure by the market participants. In order to maximize disclosure for the benefit of stakeholders and market participants, all banks were required to get themselves credit rated with effect from June 30, 2001.
Objective of Credit Rating:

The objective is to provide yardstick to the market participants and stakeholders for informed decision making, promote healthy competition and induce financial institutions to improve their state of financial affairs.
CREDIT RATING OF NBP

Moody's maintained NBP's financial strength rating at D-thereby recognizing the internal strength and leadership position of the Bank. In addition, NBP also enjoys the highest Credit Rating amongst Pakistani banks; JCR-VIS Credit Rating Co. JCR-VIS, Japan Credit Rating Agency Ltd. Is a well known rating agency of the country. JCR-VIS has rated National Bank of Pakistan AAA (triple A) for long term and A-1+ (A-One plus) for the short term with stable outlook The JCR-VIS Credit Rating Co. comments about NBP says a lot about the bank: The organization has been able to strategically manage and build on its competitive advantages which has translated into the strong and well managed improvement in profitability trend observed over the last few years, a substantial balance sheet of sound asset quality, and strong liquidity and capitalization levels. These ratings denote a very low expectation of Credit Risk, strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term, respectively.
NBPs key strength remains its extensive outreach in the domestic and international markets, as well as its broad based, cost effective deposit base. Further strength is also derived from deposits. With the lowest cost of funds in the market during 2008, NBPs net finance margins remained amongst the highest in the sector, and core earnings rose considerably. The rating committee has also favourably considered recent efforts made with the objective of improving internal controls and strengthening of the banks internal audit function.
MARKET RECOGNITION
In addition to the highest Credit Rating in the banking sector NBP is exultant to receive several awards from both local and foreign institutes of repute. NBP in year 2007 received the award for Best Return on Capital for 2006 amongst all banks in Asia by Bankers Magazine' in July 2007. Mr. Ali Raza, Chairman & President was awarded The Asian Banker Leadership Achievement Award 2007 by Asian Banker in 2007. The Asian Banker has adjudged NBP as the Strongest Bank in Pakistan .
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SWOT ANALYSIS
STRENGTHS
NATIONAL BANK THE NATIONS BANK:
NBP is government owned bank that is why Pakistani Nation has a trust on a bank that their deposits are secured. Due to this reason the deposits of the banks are increasing with the passage of time.
AGENT OF STATE BANK OF PAKISTAN:

National Bank of Pakistan also works as an agent of state bank of Pakistan in those cities where SBP branches are not working. AGENCY ARRANGEMENTS: National Bank of Pakistan is enjoying with deposit of different government organization like Pakistan Railways, PIA, WAPDA, SUI-GAS due to agency arrangements.
MORE DEPOSITS THAN OTHER BANKS:

NBP has the relative competence in having in having more deposits than the other bank. This is because of the confidence the customer have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over all others, lacking it.
PROFITABILITY:
The pre-tax profits of NBP have gone up to Rs.6.05 Billion.
BROAD NETWORK:
The bank has another competency i.e. it has broad bases network of branches through out the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied.
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PROFESSIONAL COMPETENCE:
The employees at NBP here have a good hold on their descriptions, as they are highly skilled Professionals with background in business administration, banking, economics etc. These professional competencies enable the employees to understand and perform the function and operation in better way. COMPREHENSIVE RANGE OF FINANCIAL PRODUTS: In order to facilitate the customers, NBP is offering comprehensive range of financial products which are as follows: Credit Cards Foreign exchange Bearer Certificates National Bank Daily accounts Travellers Cheques
ONLINE BANKING:
This is also strength of NBP that 130 branches are online. It helps the speedy services giving to the customers. There is also help in checking the balances and daily transactions just at one key press.
INVESTING IN CAPITAL MARKET:

NBP has decided to diversify the fund base by investing in capital markets not only in Pakistan but also in foreign countries.
ATM FACILITY:
ATM facility is also provided by NBP for the customers.
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WEAKNESSES:
LACK OF MARKETING EFFORT:
The bank does not promote its corporate image, services etc on a competitive way. Hence lacks far behind in marketing effort. A need for aggressive marketing in the era marketing is now becoming a part of every organization. POOR WORKING CONDITIONS: Despite, cultural change program the working condition of the NBP is not up to standard.
NBP UNDER POLITICAL PRESSURE:

The strong hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees.
RECRUITMENT POLICY:
In NBP, employees are recruited on the basis of favouritism or through other tools of corruption.
INCOMPETENT STAFF:
Due to wrong recruitment policy staff of NBP is not proficient in their work. IRREGULARITIES IN PROMOTIONS: In NBP there is no smooth and continuous promotion system. Unfair means are used in order to get the promotion especially the promotion of the managers.
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LACK OF COMPUTERIZED NETWORK:

The bank lacks the strength of being powered by the network of computers, which have saved time, energy and would have lessened the mental stress. This would add to the strength if it were powered by network of computers.
LACK OF MODERN EQUIPMENT:

The bank also lacks the modern equipment that is not counting machine computers. Even if there is any equipment they lack to fall in the criteria of being rearmed as updated and upgraded.
UNEVEN WORK DISTRIBUTION:

The workload in NBP is not evenly distributed and the workload tends to be more on some employees while others are away from their responsibilities, which serves as a de-motivation factor for employees performing above average work.
LACK OF COMMUNICATION BETWEEN EMPLOYEES:

There is a lack of communication between employees and management. They have not very much understanding with each other and not share the work of each other.
STAFF SHORTAGE:
There is also a weak point for NBP that staff is very short and more staff is required to meet the needs of the branch work.
STRONG UNION:
Union has strong impact on the performance of NBP, so the top management is unable to punish the violators.
ORGANIZATIONAL STRUCTURE:
In this organization the organizational structure is bureaucratic which a barrier in rapid and effective decision making.
OPPORTUNITIES:
ELECTRONIC BANKING:
The world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. NBP can utilize the electronic banking opportunity to ensure online banking 24 hours a day. This would give a competitive edge over others.
GROWING BANKING SYSTEM:

Now a days banking system is growing quickly so NBP have opportunities to improve the standard and get the more share in market.
INVESTING IN THE FOREIGN CAPITAL MARKET:

NBP can enjoy handsome return its funding base by investing in capital markets in the foreign countries.
ADVISORY SERVICES:
It can establish advisory services in order to facilitate the customers in investing in securities.
INCREASE IN ECONOMIC ACTIVITIES:

The economic activities are increasing nowadays, so banks are contribute more in economic activities. Banks played a major role in trade and commerce. So the businesses of commercial banks are increasing.
ISSUANCE OF BOND:
To enjoy large amount, NBP can introduce a comprehensive range of bonds.
FOREIGN BRANCHES:
NBP by establishing new branches in foreign countries can expand its business and can enjoy with profit.
CONSUMER BANKING :
The basis need of the consumer such as housing, transportation and other durable goods are not adequately financed by banks. So by initiating these services, the bank can enjoy with more funds.
THREATS
EMERGENCE OF NEW COMPETITOR: The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition.
INFLATION:
In our country, the rate of inflation is increasing along with unemployment. So due to increase in price of the products, the savings of the nation is decreasing with the passage of time. So it is threat for banking sector. In the future the deposits of the bank will decrease.
CUSTOMER COMPLAINTS:
There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customers complaints are ignored.
MODERN TYPE OF BANKING:

Modern and computerized banking is required to fulfil customers needs. So maximum branches of NBP are working in old traditional ways.
THE WHOLE STRUCTURE CHANGES TO ONLINE:

NBP has wide network of branches. Only 130 branches are online, so it is very difficult and time consuming to convert all branches to online system. So there is also a risk involves that if one
computer of one branch suffers in problem, all systems and all computers of the branch must be turn off.
GOVERNMENT POLICY:
On NBP Govt. policies have strong impact. A slight change in Govt. policies may affect the performance of the bank. The bank has to work within the regulation frame work.
POLITICAL PRESSURE BY ELECTED GOVERNMENT:

The ongoing shift in power in political arena in the country affects the performance of the bank has to forward loans to politically powerful persons whom create a sense of insecurity and demoralization in the customer as well as employees.
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MANAGEMENT STRUCTURE
Corporate Profile:
The complete profile of the people who serves as the think tank of National Bank of Pakistan is given in hierarchical order in the following lines.
BOARD OF DIRECTORS Syed Ali Raza Chairman & Director
Mr. Sikandar Hayat Jamali Mian Kausar Hameed Mr. Ibrar A.Mumtaz Mr. Tariq Kirmani Mr. Mohammad Ayub Khan Tarin Mrs. Haniya Shahid Naseem Mr. Ekhlaq Ahmed
Director Director Director Director Director Director Secretary Board of Directors
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SENIOR MANAGEMENT
Qamar Hussain Chief Operating Officer , Credit Management Group
Dr. Asif A. Brohi SEVP & Group Chief, Operations Group
Imam Bakhsh Baloch SEVP & Group Chief, Audit & Inspection Group
N. B. Soomro SEVP Islamic Banking Group
Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group
Agha Fidaullah EVP/Group Chief, Special Assets Management Group
Ziaullah Khan Senior Executive Vice President
Ekhlaq Ahmed EVP & Secretary Board of Directors
Dr. Mirza Abrar Baig SEVP & Group Chief, Human Resources Management & Administration Group Nadeem A. Ilyas EVP & PSO to President , Group Chief (A), Compliance Group Amer Siddiqui SEVP & Group Chief, Commercial & Retail Banking Group Naeem Syed EVP, Divisional Head, Project Management Office
Shahid Anwar Khan SEVP & Group Chief, Overseas Banking Group
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Aamir Sattar SVP, Divisional Head, Financial Control Division
Muhammad Nusrat Vohra SEVP & Group Chief, Treasury Management Group
Atif Hassan Khan Group Chief (A), Information Technology Group
Ali Hassan SVP-Head PMO-CBA / Chief Information Security Officer
OVERSEAS OPERATIONS MANAGEMENT

R.A. Kaleemi
SEVP & Chief Representative, Canada Office
M. Rafiq Bengali SEVP & Regional Chief Executive, Americas Region
Asif Hassan SEVP & Regional Chief Executive, Far East Region
Nausherwan Adil SEVP & Regional Chief Executive, Europe Region
Khawar Saeed SVP & Regional Chief Executive, Central Asian Republics Region
Zubair Ahmed EVP & Regional Chief Executive, Middle East, Africa & South Asia Region
Muhammad Hanif Khan SVP & Coordinator, Afghan Operations NBP'S INITIATIVE IN 2007
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AUDIT COMMITTEE
Azam Faruque Ibrar A.Mumtaz Mian Kausar Hameed
AUDITORS
Ford Rhodes Sidat Hyder & Co. Chartered Accountants M.Yousaf Adil Saleem & Co. Chartered Accountants
LEGAL ADVISORS
Mandviwala & Zafar Advocates & Legal Consultants
Registered & Head office

NBP Building I.I. Chundrigar Road , Karachi, Pakistan
Registrars & Share Registration Office

THK Associates (Pvt.) Ltd. Shares Department, Ground Floor, State life Building : 3 Dr. Ziauddin Ahmed Road, Karachi, Pakistan
WEBSITE
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www.nbp.com.pk
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NBP HEAD OFFICE SET UP

President & Chairman Board of Directors
Chief Coordinator Islamabad PSO & Secretariat
Board of Directors
Secretary BOD
Operations Committee BOD Audit Committee
Assets & Liability Committee
Credit Committee
Training & HR Steering Committee
I.T. Steering Committee
Operations Group
Finance Group
Corporate & Investment Banking Group
Risk Management Group
Commercial & Retail Banking Group
Audit & Inspection Group Special Assets & Remedial Management Group
IT Planning Development & Implementation Group
Strategic Planning & Economic Research Group
HR Management Department
Four Overseas Regional Chiefs
Organization Development & Training Department
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ORGANIZATIONAL STRUCTURE
PRESIDENT
DIRECTORS/ SEVPS
PROVISIONAL CHIEFS/EVP
REGIONAL CHIEFS/EVP ZONAL CHIEFS/SVP VICE PRESIDENT ASSISTANT VICE PRESIDENT OFFICER GRADE I, II, III
CLERICAL & NON CLERICAL STAFF
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BRANCH ORGAN GRAM (NEW GARDEN TOWN)

MANAGER OPERATION MANAGER HALL/DEPOSIT INCHARGE
BANKING OPERATIONS
CREDITS
PENSION PAYMENT
GOVERNMENT COLLECTION
CLEARING
EOBI
Consumer Banking
GOVT.
Account opening
Cash Department
DISPATCH
B
Head Cashier
DEMAND FINANCE RUNNING FINANCE Utility Bills Govt. Tax Passport Fee Collection
Remittances
STUDENT LOAN CASH FINANCE SMALL FINANCE

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Customer Relationship
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POLICY FORMULATION PROCESS

National bank of Pakistan policy formulation process is carried out by the top level managers. Executive committee is responsible for designing policies in order to achieve strategic objective. The committee holds meetings on monthly basis and half year basis. The committee consists of members including; Board of Director Chief Executive Officer Executive-in-charge of strategic planning and global marketing
MAJOR FUNCTIONS
Major functions performed by the executive committee are as follows; Analyzing the overall growth of bank. Defining the features of policy. Do the virtual testing. Remove the flaws. Implementation of the policy.
MANAGERIAL POLICIES
In NBP, the policies are of three types:
Operational policies Credit policies Human recourse policies

OPERATIONAL POLICIES
Operational and system division is responsible for the formation of the operational policies. Executive in charge of the system and the operation division is there to implement the operational policies. It is the duty of executive-in-charge to:
Monitor the overall operation of the bank Activities performed by operation department of different branches Analyzing the workflow of different departments such as remittance, current deposit department, and account department Rate of increase in deposits of different branches Specify the rules regarding the account maintenance
Executive in charge also designs the motivational policies for: Home Finance Business Finance Leasing
CREDIT POLICIES
Two division form credit policies: Credit Division Credit Monitoring Division
CREDIT DIVISION
Major purpose of credit division is to approve corporate loans, short and long term loans. Real earning for the bank comes from the credit division.
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Executive-in-charge of the credit division is responsible for making lending policies that are duly approved by the board of directors and followed by different branches. Credit division design the policies after taking into account the credit policies made by SBP. Credit department of all branches must follow all the instructions given by the Executive-in-charge of the credit division.
CREDIT MONITORING DIVISION

Credit monitoring division monitor overall credit exposure and takes analytical and systematic approaches to its credit structure categorized by group industry. This division has built up and maintains a sound loan portfolio in terms of well-defined credit policy. Bank credit a valuation system comprises of well-defined credit appraisal, sanctioning and review procedures for the purpose of emphasizing prudence in its lending activities.
HUMAN RESOURCE POLICIES
Development of the professional skills and knowledge of the employees is essential for the efficient functioning of the organization. At Bank appropriate design policies and practices have been instituted to achieve strategic objective. HR policies made by the Executive-in-charge of human resource division. These policies are as follows:
HR Development Type of Human Development Type of loans provided to staff member Setting the career path of the employees Staff training programs Promotion of the staff members according to the performance Policies about the staff bonuses and staff benefits schemes
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CATEGORIES OF NBP BRANCHES

There are three categories of NBP branches:
CATEGORY (I) BRANCH:

It consists of more than 16
Employees.
Separate Compliance Officer Separate Operation Manager Separate Branch Manager
CATEGORY (II) BRANCH:

It consists of 6
to 16 Employees.
Separate Branch Manager Operation Manager will work as compliance officer.
CATEGORY (III) BRANCH:

It consists of 1
to 5 Employees.
Branch Manager will work as Compliance officer and Operation manager along with one cashier.
Note: I did internship in category (II) branch
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EMPLOYEES IN VARIOUS DEPARTMENTS

(NEW GARDEN TOWN BRANCH) EMPLOYEE NAME
MIAN SAEED MEHMOOD MRS. ZAHIDA NASEER HABIBULLAH SHEIKH FARHAN JAVAID WASEEM WAHEED BUTT ABDUL SAMAD BAIG MUHAMMAD ATIF MUHAMMAD ZUBAIR MRS. FARIHA NOSHEEN GHULAM SHABAR MUHAMMAD SALEEM ABDUL RAZZAQ BABAR JASWANT
DEPARTMENT/DESIGNATION
ASSISTANT VICE PRESIDENT(AVP)/
BRANCH MANAGER OG (I) / OPERATION
M ANAGER INCHARGE
OG (I) / HALL AND DEPOSIT
OG (II) / CREDIT ADMINISTRATION
OG ( II) / PENSION PAYMENT INCHARGE
ASSISTANT / SCROLLING OF PASSPORT FEES ASSISTANT / REMITTANCES & DISPATCH

INCHARGE
OG ( II) /ACCOUNT OPENING INCHARGE
OG (II) / DEPOSIT OFFICER PASSPORT FEE COLLECTION & TRANSFER INCHARGE OG
(I) / HEAD CASHIER CASHIER
CASH DEPARTMENT
CASH DEPARTMENT
OG (I)/PASSPORT FEE COLLECTION INCHARGE
MESSENGER
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JOB DESCRIPTION:
A Banker is responsible for establishing and maintaining positive customer relationships, planning and delivering effective sales strategies and monitoring the progress of new and existing financial products. Bankers may work as managers in high street branches providing operational support on a day-to-day basis, or in more specialized posts in corporate and commercial departments at area, regional or head offices. Banks operate in a fiercely competitive market place where change is common. Products and services offered have to develop to satisfy the expectations and demands of customers and working with staff and customers to achieve targets has become a very major part of the role.
TYPICAL WORK ACTIVITIES OF EMPLOYEES IN VARIOUS DEPARTMENTS
BRANCH MANAGER:
Mian Saeed Mehmood is performing the duties of Branch Manager in New Garden Town Branch of National Bank. The Duties of Branch Manager includes: Marketing of Credit Advances & Recovering Loans and Mark-ups.
OPERATION MANAGER:
Mrs. Zahida Naseer is the operation manager and performing the following duties: All the circulars/office orders are followed up by operation Manager. Loan Sanction--- supervise the credit In-charge along with Branch Manager. Overall assigning of Branch employees duties on different departments is supervised by operation manager.
Overall checking of bank books whether they are complete and accurate. Work as a compliance officer (To rectify flaws and Mistakes in different banking operations).
HALL AND DEPOSIT INCHANGE:

Habibullah Sheikh is Hall and deposit incharge and performing the following duties: Supervising all the activities of operations. Act as a joint custodian with Head Cashier. Maintaining Bank Cash Scroll.
Receipt
Payment
Balancing the cash with Head Cashier on day end. Locking the Strong Room (Room that contain remaining cash balance at day end) Act as a Joint Signatory.
CREDIT INCHARGE:
Farhan Javaid is dealing with credit administration and serves as a purpose of incharge in Credit Department. His work activities include: Administration of Credits. Preparing Loan Proposals. Sanction the loans. Keep proper investigation of Securities from customers (i.e. mortgages, pledge, stock etc.) Preparing Loan Case. Recovering Principal amount of Loans (i.e. instalments, lump sum) Recovering Mark-up as bank income from customers periodically (i.e. half yearly, quarterly, annually) Preparing Branch Profit and Loss Statements. (i.e. monthly, half yearly, quarterly, annually)
Dealing with WESTERN UNION PAYMENT through SWIFT Code.
DEPOSIT OFFICER:
Mrs. Fariha Nosheen is a deposit officer in the branch and performing the following work activities: Accepting Account Holders Cheques and after verification of balance in account, customer signature from Specimen Signature Card, debit the Customers account in the system i.e. posting of cheque. All the receipts received by Branch Account Holders are also credited by the officer in their accounts. Also give details to customers about Balance Enquiry. Collection and transfer of Passport Fees. (Being the Hub Branch for collection of Passport Fee from nearest 7 to 8 branches and keeping it weekly nil by transferring the Govt. passport collection to Govt. offices along with Govt. Debit Scroll
PENSION PAYMENT INCHARGE:

National Bank is the only bank that performing pension payment responsibility for Govt. Employees. Waseem Waheed Butt is the in-charge of pension payment in this branch and performing the following functions: Giving pension payment to Govt. employees after verifying Pension Payment number (P.P.NO.), File Number (maintained by bank and relevant Govt. office) and claim NO. (EOBI) Also performs Clearing services. Receiving Inward Clearing and return in any case of objection through NIFT. Making outward clearing for our customers to be clear from other banks through NIFT. Maintaining intercity Cheques through TCS services or DAK.
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REMITTANCES AND DISPATCH INCHARGE:

Muhammad Atif is remittances and dispatch in charge, performing following Work Activities: All the Dak which is send to Main Branch or other branches is made with TCS slip enter in DISPATCH REGISTER. All the Dak which is received from other banks branches with their particulars enter in MAIL INWARD REGISTER.
GOVT. COLLECTION INCHARGE (CASHIER):

MUHAMMED SALEEM is in-charge of this collection and performing the following duties:
Collecting Govt. utility bills ( SUI-GAS, WASA, WAPDA )
Receiving bill payment from customer and entering the particulars in CASH RECIEPT BOOK Collecting Govt. tax i.e. income tax, sales tax, property tax and keeping the record of TAX VOUCHER COPY.
Receiving Tax payment from customers and enters into CASH RECIEPT BOOK. On day end, totalling the govt. bills and Govt. tax collection and hand over the physical cash plus vouchers after proper balancing to Head Cashier for final cash balancing.
PASSPORT FEE COLLECTION:

Abdul Razzaq is performing the responsibility of passport fee collection incharge. His duty includes: Collecting Govt. Passport (Urgent/Normal) and receiving payment from customers. Entering the particulars in Cash Receipt Book. On day end, balancing the total cash receive for passport fee and transfer the record to Head Cashier for final cash balancing.
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ASSISTANT (SCROLLING OF PASSPORT FEE):

Abdul Samad Baig is responsible for Scrolling of Passport Fee and: Preparing Passport collection scrolls also called Govt. Debit Scrolls and maintaining 3 copies of it for Main Branch Banks Branch Copy Passport Office
ACCOUNT OPENING INCHARGE:

Muhammad Zubair performs the following activities: Opening of Bank Accounts. Basic Banking Account (BBA) PLS Saving Account Current Account Fixed Account Visually impaired/Blind Persons Account
Maintenance of Cheque Book records. Entering of newly printed cheque books with their particulars in Cheque Book Register. Taking signature of authorized Account Holder on relevant entry of Cheque book register at the time of issuance. Keeping all the cheque books under Lock and Key. Sending Letter of Thanks to newly account opening customers. After Letter of Thanks ACKNOWLEDGEMENT received from customers on verification of his Home Address only then Bank Officer can issue Cheque Book. Attach the Letter of Thank Acknowledgement part with Account Opening Form of those customers. Maintaining Locker Record. Act as a CLEAN CASH WRITER.
Generate all the day books i.e. PLS, current, payment order etc. Generate General Ledger. Generate General Ledger Abstract.
MESSENGER:
Baber Jaswant acts as a messenger for the branch and performs; Immediate DAK on daily basis is to transfer from branch to branch. Regulating office orders/circulars from one branch to another.
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SALARY AND CONDITIONS

Starting salaries for new entrants to Batch Trainee Programs from Rs.15000 to Rs.25000.Typical salaries at senior level range from Rs.50000 to Rs.100,000 depending on level of responsibility and including bonuses based on meeting targets. In some specialized roles, such as marketing or human resources, salary ranges at senior level are market driven and reflect pay levels for similar roles in other organizations. Salary prospects are good. There are a variety of fringe benefits, including preferential schemes for private healthcare, contributory pension, share-save, development and training allowances, annual profit-share, life assurance, territorial/location allowance, subsidized mortgages and cheap loans. Working hours are generally 9 am to 5 pm but extra hors may be required from time to time. JOB Opportunities exist throughout Pakistan and are advertised via Bank Websites and internal vacancy bulletins. The majority of Senior Management positions continue to be male dominated but an increasing number of females is also increasing day by day. There are no opportunities for self-employment in retail banking and they are rare in corporate and commercial banking. It is sometimes possible to work as an independent financial adviser following appropriate training. Because of the nature of the job, it is important to pay special attention to personal security. Smart appearance and exemplary professional development training may sometimes give rise to stress. To optimize career progression, mobility is essential as banks often expect their staff to relocate to different branches all over Pakistan. During training, graduates move around on placements. After training, work location will depend on factors such as the type of banking you prefer and where jobs are available
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HUMAN RESOURCE
For NBP the dedicated, hardworking staff is one of the key strengths of the bank. NBP has been investing in developing this valuable resource through need based training and career growth development. Our HR objective is to become an employer of choice and to maintain complete industrial harmony within the institution.
ENTRY LEVEL REQIREMENTS

Batch Trainees
Management Training Officers (MTO)
Operation officers
NBP offers unlimited opportunities to its employees for continuous personal and professional growth:
1)
Change Management Program:
NBP has started an ambitious Change Management Program to further train its employees to meet the challenges of present day requirements.
2)
Training of new staff:
Training and development are the core issues of HR, which will ultimately improve our customer service and help us, attain the standard of a progressive bank.
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3)
Benefits:
Besides a competitive financial package, we offer excellent working conditions, job satisfaction, superior leadership, and a conducive environment for growth. The jobs at National Bank of Pakistan are open to all graduates applicants from a wide variety of degree subjects. However, for specialist roles numerate degree disciplines may be preferred. These include: Mathematics Finance Business Studies Economics Law Accounting
Apart from an excellent academic record, candidates will need to show evidence of the following: Team players with excellent interpersonal skills Knowledge and use of information technology Strong analytical and problem solving skills Excellent written and verbal communication skills in English
MTO Program:
Our new hiring of top class MBAs as Management Trainee Officers (MTOs) and search for talent within the bank has helped in preparing second and third tier leadership lines which will shape our succession planning process and at the same time will ensure that with the passage of time our employee refinement and skill enrichment program continues. NBP also have started new Employee Communication Program' and internal organizational magazine to improve the interaction of top and middle level management with the lower management. Female employees are being encouraged through female empowerment program under which they are given responsible and challenging assignments. Currently over 60 females are employed as branch manager all over country and some females hold senior management positions
National Bank management trainee program is a dynamic path to launch fast track banking career. The program provides high quality training and development of the bank across Pakistan. Eligibility Criteria : MBA or Masters Degree with 3.0o/4.oo 0r 3.70/5.00 GPA or higher from an HEC recognized institution or a 4-year foreign/local Bachelors Degree, excellent communication skills and an age limit of 25 years.
OPERATION OFFICER BATCH:

Joining the National Bank operation officer Batch is a sure way to get involved in various day to day consumer-banking activities of the bank such .as: Account opening, remittances, collection, clearing, government securities, lockers, etc. This position includes an intense 4-week training program designed to teach officers how to manage the above mention areas. Eligibility Criteria: Graduate/Post Graduate Degree with 1st or 2nd Division from an HEC recognized institution, excellent communication skills, and age limit of 24 years.
TRAINING PROGRAMMES:
NBPs management believes in developing the potential of the banks employees to the fullest extent. Training & development Centre of the Bank are housed in state of the art facilities at Lahore, Karachi, and Islamabad. The centres are responsible for providing multi-level high quality training programmes to all staff members in the following areas: Customer service skills Consumer Banking Operations Credit Marketing & Credit proposals Administration/Documentation Marketing and selling skills Leadership and Management skills Personal effectiveness and skills
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It is obligatory for each staff member of the bank to attend at least two days of training in a calendar year in order to cope up with new methods and procedures. Whenever the Training Department is unable to provide focused training for certain group of staff, reputable external training providers are invited to fill the gap. Management trainees are able to progress rapidly to senior management positions, often via a fast track route where they can expect a managerial appointment at the end of the successful training. Some management trainees will choose to move to another NBPs branch where they may manage a particular business area, such as personal loans. Other may prefer corporate banking or a more specialized role, such as: Human resources Marketing Credit and Risk analysis Card services Operational management Investment analysis
CAREER LADDER
Career Advancement is usually linked to high levels of performance, especially by meeting sales/customer targets. It is also important to prove potential management ability by, for example, providing evidence of having efficiently executed responsibilities in specific areas of the bank. NBP is committed to the personal welfare and professional development of all its employees. The management realizes that proper career development is essential, not only for a more productive and satisfied workforce but also for a excellent corporate culture. Career planning is very important aspect for development of the employees. By career planning employees career goals are set and to achieve them. The bank feels the responsibility to develop the careers of their employees so that they would be able to get themselves high and high in corporate hierarchy. Then the principle aim of career development programs is to help employees, analyze their
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abilities and interests to better match personal needs for growth and development with the needs of the organization.
PERFORMANCE APPRAISAL
Performance appraisal is the process of reviewing the individual performance. First of all bank set some standards for different level of employees and direct to their employees to do work according to these standards and evaluation their performance.
TIME PERIOD:
In NBP performance appraisals are usually prepared after every six months, performances of every employee are to be reviewed and on the basis of these performances compensations and benefits are determined.
PERFORMANCE APPRAISAL METHODS:

PERFORMANCE APPRAISAL METHODS which are being used in bank are : Essay about employee performance description Work standard
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MANAGEMENT STYLES
NATIONAL BANK OF PAKISTAN (NEW GARDEN TOWN BRANCH)
The management must adopt some administrative style to get all the activities done effectively and efficiently. Management has undergone many changes in the past years. Traditional management approaches have been questioned and re-evaluated as managers search out structural designs that best support and facilitate employees doing the organization work: ones that can achieve efficiency but also have the flexibility that is necessary for success in todays dynamic environment. Various management styles can be employed dependent on the culture of the business, the nature of the task, the nature of the workforce and the personality and the skills of the leader. As far as the management styles at National Bank of Pakistan, New Garden Town Branch, are concerned, the management styles have a very effective blend. Mr. Habibullah Sheikh, in charge of hall and deposits believes in the delegating powers to personnel who do not hesitate in discussing with him the difficulties faced by them. In the presence of low job, satisfaction among the employees of this department the friendly behaviour of Mr. Shabar has a positive influence on their job performance. The environment in Cash Department is very pleasant. Mr. Farhan Javaid, in charge of Credit Administration, has participative style of administration. He appreciates the suggestions and views of the credit officers but keeps the final decision with himself. He gives the employees a confidence in their abilities. All the members in Credit Department work as a team. The efficiency of his team is good. In charge of Credit Marketing, Mr. Mian Saeed Mahmood (AVP) is a very strict person. He keeps a thorough check on every activity of this Department. Infact all the members in his department are hard working add dedicated. All of them feel their responsibilities. His style is requirement of his duty as there is a huge responsibility on his shoulders. Even in the presence of an authoritative in charge, the morale of the unit is very high. Mr. Muhammad Zubair, in charge Account Opening, is a very competent person. He has the art of managing the workforce in a very effective manner. He knows how to keep employees motivated and committed to their tasks. He has a very professional style of working, and handling toughest situations.
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MARKETING
SEGMENTATION:
The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are most likely to purchase you are offering. If done properly this will help to ensure the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments. There are different ways of segmenting the market. NBP has adopted the way of Multiple Segmentation. A segment is s distinguishable component of the bank that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.
BUSINESS SEGMENTS
Corporate Banking:
Corporate banking includes services provided in connection with mergers, acquisitions, underwriting, privatization, securitization, and research, debts (government, high yield), equity, syndication, IPO and secondary private placement. The Corporate Banking Group of NBP achieved excellent results in 2007 with a number of landmark transactions in cement, energy, communication and fertilizer sectors. In addition to the funded income, our corporate and investment banking has substantially increased its fee base income this year by being the lead advisor in a number of transactions in the corporate world of Pakistan.
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The challenges to corporate business in year 2007 were manifold including reduction in Private Credit Investment as a result of slowing down of economy as well as rising interest rates. The increasing pressure on the textile industry reduced the lending to this sector. In addition the bank's corporate loans yields also faced pressure as substitute form of funding sources are available in the market in form of Islamic financing, mutual funds, issuance of debt instruments like TFCs and Bonds and the capital markets. Despite these threats and challenges at NBP, our corporate team not only increased the volume as well as the yield of the loans they also maintained a strong franchise with the leading Pakistani corporate so as to ensure that NBP not only maintains its market share but is in a position to meet any challenges in future. NBP during the year also participated in a number of TFC issues and mutual funds subscriptions thereby increasing the overall yield on investment portfolio. NBP has the largest equity portfolio in the banking sector primarily due to 27% holding in NIT units, the largest mutual fund in Pakistan. During the year the bank redeemed 10% of its NIT holding covered under LoC, which resulted in capital gain of Rs.1.8 billion.
Retail Banking:
It includes retail lending and deposits, banking services, private lending and deposits, banking services, merchant/commercial/corporate cards and private labels and retail. NBP Karobar under the President's ROZGAR Scheme recorded excellent growth after its full launch in April 2007. This is a unique product launched to tap into the un-banked and actually the so far un-bankable poor people of Pakistan targeted towards the unemployed youths aged between 18 to 45 years. This product not only serves the bank's commercial strategy but is also an effort towards poverty alleviation in the country. It is a unique Public Private Partnership with GOP paying 50% of the mark-up (the rest is paid by the customers), as well as providing free life and disability insurance to the NBP Karobar customers and sharing the losses with the bank. Housing is every citizen's birth right. It is a known fact that the Mortgage Business drives approximately 100 different sectors and thus is one of the driving forces in boosting the economy of a country. In line with this, NBP's Mortgage Financing Product, under the brand of NBP Saibaan, has been fully launched throughout Pakistan in 2007, catering to both the urban and rural
areas of the country. In 2007, NBP Saibaan has been the market leader in housing finance as the overall disbursements were at an average of approximately Rs. 350 million each month, which is by far ahead of the competition. As on December 31st 2007 the total NBP Saibaan portfolio stands at Rs. 9.35 billion. Thus NBP Saibaan has become the leader amongst the top five Banks of Pakistan in Mortgages. Pakistan has a massive backlog of over 6 million housing units, where in the country needs about 0.6 million additional units every year. The flagship NBP Advance Salary product continued to grow in 2007 and maintained its position as the single largest product in the country with its accumulated disbursement crossing Rs.115 billion. The number of organizations whose employees are entitled to avail this scheme is gradually being increased ensuring continued growth. The latest addition is the Pakistan Army and the target is almost half a million new customers in the next three years in addition to the existing base of one million satisfied customers approximately. Our retail banking is expanding its reach to its diversified customer base by offering new services and products through new delivery channels so as to minimize counter traffic, increase product offering and reduce administrative costs. The development of alternate delivery channels, use of I.T. and leveraging large customer base for cross selling potential are the key strategies of NBP for increasing its retail business. NBP holds 16% market share in the consumer loan business and we aim to increase it gradually without compromising on the quality of portfolio. Our call center is a value addition in customer services and provides overall support to our retail products. It is a unique technology as it is not service provider specific and free calls can be made to the NBP Help Line on 0800 800 80 from any land or cell phone in the country.
Commercial Banking:
Commercial Banking includes project finance, export finance, trade finance, leasing, lending, gurantees, bills of exchange and deposits. NBP plans to establish commercial centers across the country looking at the business potential in the area, size of the branch and its capabilities to deliver the desired service in order to attract quality customers. The objective is to target the untapped sectors and provide them professional quality service, through one window operations and Relationship Managers stationed at those centers. We expect and hope to reduce the turn around time and become more competitive and market oriented.
Further this customer friendly and dedicated set up at convenient locations would help in improving the image of the Bank as well. These Centers would work in conjunction with the existing setup of Commercial Lending done throughout the NBP branch network. The main purpose of these centers is to generate ancillary business in addition to funded and non-funded facilities, with quick turn around time in decisions for customer satisfaction.
SMALL AND MEDIUM ENTREPRISES (SME)

Small and Medium Enterprises (SMEs) remain the main area of focus for NBP and are considered the future growth driver. The growth of SME is important as they generate higher yields and are expected to be a high growth sector in the near- term. The services available to SMEs are similar to those provided to our Corporate / Commercial customers, including, but not limited to working capital finance, term lending, trade finance, letter of credits and guarantees. Our growth strategy for SMEs revolves around developing a better understanding of the SME market, increasing market penetration through our existing products and newly tailored ones, and increasing our capacity to provide SMEspecific services to our clients. The bank is engaged with Shore Bank International (SBI) in a technology as well as Technical Assistance agreement. The objective of which is to establish more effective SME lending at a select number of NBP branches. These techniques (including cash-flow based assessment) are institutionalized through an extensive staff training process. The pilot phase of the project (confined to selected Regions of Punjab) culminated in December 2007 and overachieved most of the pre-defined targets. More than PKR 1.6 billion in loans has been disbursed to over 811 undocumented businesses while maintaining an NPL rate of less than 2%. After the success of the pilot project, NBP has decided to engage the services of SBI to roll out the Technical Assistance on a national scale, covering 200 branches in Sindh, Punjab and Baluchistan in the next two years.
Credit and Risk Management

NBP is continuously upgrading its risk management process to identify, evaluate and manage risk. During the year the bank established an Operational Risk Management Unit to supplement its already established Credit and Market risk units for comprehensive risk managements. Our risk management in terms of adoption of Basel II guidelines is on time and is advancing smoothly with completion of internal gap analysis. Our Credit Management System is based on elaborated risk assessment and
credit Rating System to ensure a very objective and timely assessment of each proposal. We have our internal filtration systems and approval hierarchy to ensure that proper authority and responsibility is established and at the same time to reduce the lead processing time of the credit application. We have proper monitoring system and have also setup a separate Credit Administration Department (CAD) to further improve our credit monitoring function.
Special Assets Management

With provision coverage of 84% NBP believe that going forward its Special Assets Management Group will make major contribution towards the Bank's profitability through recoveries and reversal of provision charge as a result of declassification / rescheduling. It has revamped its special assets management business and have coordinated its efforts to expedite recoveries and settlements.
Operations
NBP is committed and focused towards good quality customer service and in 2007 with the motto of Putting a smile on our Customer's face. The bank made concerted efforts and took a number of initiatives. Workshops and seminars were conducted to disseminate the very important message of Excellent Customer Service. It is transforming their branches to give a modern look and convenience. A number of branches have been shifted to prominent and spacious locations. The bank also has established specialized customer facilitation centers to exclusively cater to pension payments, utility and government collections. These are expected to reduce counter traffic at its branches and will increase its distribution channels for better and convenient services. Business hours have been extended with establishment of customer facilitation offices at the regional levels to help on the spot resolution of customer complaints.
Information Technology
Today banking is becoming more and more mechanized and it is the I.T. support that can improve the customer services and reduce cost at the same time. At NBP it has elaborated plans for transformation of the entire I.T. architecture of the bank by implementing core banking solutions. The said technology will not only increase its distribution capabilities by many folds but will also simplify its
internal procedures thereby reducing the transactional cost and lead time for service. NBP has started a number of projects in relation to I.T. structure up-gradation. The bank is expanding its ATM network and connectivity to further expand its reach to the customers. This year it has completed its automation of the government's tax collection services thereby opening new opportunities for such services on behalf of other organizations. NBP is also looking into other I.T. products for salary and pension disbursement and E-banking for better services.
Agriculture
NBP remains the largest agriculture lender in the banking sector in Agriculture with approximately 300,000 borrowers and gross disbursement of Rs. 32 billion during the Financial Year 2006-2007. Our vast domestic branch network having 45% branches in rural areas and unique product offering under the banner of Kisan Dost provides us competitive edge over our peer banks. Our specialized Agriculture, Field Officers, being Agriculture graduates are trained to understand the needs and limitations of our borrowing farmers as well as versed with the latest trends in Agriculture production technology providing technical guidance and specialized services to our customers.
Deposits
NBP is the largest bank in terms of deposit. NBP large clientele and confidence of our depositors belonging to all walks of life is a major strength. We have shown appreciable growth of 18% in deposits on YoY basis, which is significant from the view point that with the consolidation in the banking sector competition for deposits is ever increasing. The bank is branding our liability products and will continue to develop new liability side products for continuing its leadership position in this business. This year the bank introduced three new liability products; NBP Premium Saver account, NBP Premium Amdani account and NBP Enhanced Saver account. These schemes have received excellent response from the customers and it expects healthy growth in future under these and new products that the bank is going to launch on the liability side. Given the large base and competition in the banking sector, the bank's performance is commendable in increasing its deposits by Rs. 90 billion especially low cost deposits.
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International Operations
NBP has the largest international franchise in terms of Assets. We are present in four continents and have branches in all the countries that are major trading partners of Pakistan. Our unique coverage of Central Asia, Far East and South Asia is incomparable and we will be the major benefactor once the trade business from the Energy rich Central Asian Republics picks up. The bank is planning to start its operations in Saudi Arabia (mid 2008) and further expand its branches in Afghanistan and Bangladesh . The bank's international operations strategy is focused towards increasing trade business and expands where the bank has competitive advantage.
Islamic Banking
The year 2007 marked the first year of Islamic Banking operations. During the year under review, in addition to active participation in various Sukuk transactions, two more Islamic Banking branches at Lahore and Peshawar started operations. NBP's plans for the year 2008 include opening of Faisalabad and Rawalpindi branches with the focus on growing organically by opening more standalone Islamic Banking branches, utilizing NBP's existing branch network of 1,200 plus conventional branches and looking into strategic acquisitions for expansion in this field.
GEOGRAPHICAL SEGMENTS
The bank operates in these geographical regions being: Pakistan Central Asia Far East and South Asia Middle East
Target Market:
After the process of segmentation, NBP evaluated and selected its target segments.
Market Segments:
For evaluating the segments, they looked at the following three factors: Segment size and growth Segment structural Attractiveness Company objectives and resources
Size of the segment (number of customers and/on number of units) taking into consideration the size of the segment selected as target market by NBP is reasonably large enough. Growth rate of the Segment: There has been very rapid growth in the segments. This argument is well supported by the fact that the sales of the NBP has turned up to more than twice as it was ten years back today. Competition in the Segment: NBP faces a high competition in the segment due to establishment of many private banks but it has many differential advantages over its competitors.
DIFFERENTIATED MARKETS:
To a large extent NBP is following the differentiated marketing in which it decided to target several market segments like elite class, upper class, middle class and all types banking of services for them.
POSITIONING FOR COMPETITIVE ADVANTAGE:

Simply, positioning is how your target market defines you in relation to your competitors. Positioning has three components:
What are your strengths? Your distinctive competencies? What about your offerings provide value to your customers? Who is your target customer? What about them makes them an ideal fit for the value you offer? How are you different from your competitors in ways that your customers and potential customers will value? In other words, what is your unique selling proposition? Your competitive advantage?
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When all three are put together, you have a positioning statement. Positioning statements are the basis for all marketing messaging, sales scripts, and at a corporate level: branding. It is important to understand your product from the customers point of view relative to the competition.
POSITIONING STARTEGIES:
Five positioning strategies can de pursued:
Product Classes: Compared to different classes of product. Product Attributes: What are the specific products attributes? Benefits: What are the benefits to the customers? Users: Identify a class of users? Usage Occasions: When/how can the product be used?
NBP uses almost all of the strategies for positioning their products. Thats why they have succeeded in creating a good image in their customers mind relative to their competitors.
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MARKETING MIX:
Now, we discuss the marketing mix of National Bank of Pakistan: Marketing mix is the set of controllable, tactical marketing tools ___ product, price, place and promotions__that work together to achieve company's objectives.
PRODUCT:
Product is one of the important P of the marketing mix. It is defined as: Anything that can be offered to a market for attention acquisition, use or consumption that might satisfy a want or need. OR A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based.
Due to trend setting, NBP presents a range of quality products with revolutionary perks and convenience. NBP provides a wide range of quality products/services to its customers, which can be compared with any foreign bank in terms of quality and reliability. Here is an overview of products and services offered by NBP:
NBP RETAIL PRODUCTS
Monthly Income Scheme Earn up to 11% p.a. + Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5 years Free Demand Draft, Pay Order and Cheque Book* Convenience of NBP online Aasan Banking (for online banking customers) Free NBP Cash Card (ATM+Debit) Running finance facility up to 90%
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PLS Saving Account Earn up to 7.25% p.a. + Minimum saving balance of Rs. 20,001/- & a maximum balance of Rs. 300,000/-* Free NBP Cash Card (ATM + Debit) Convenience of NBP Online Aasan Banking (for online banking customers) Two debit withdrawals allowed in a month & no limit on number of deposit transactions Profit calculated on monthly and paid on half yearly basis
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Mera Apna Karobar Minimum down payment, 10% of asset price (5% for PCO & Telecaster) Tenure 1 to 5 years (for PCO 2 years) Grace period 3 months Maximum loan amount Rs. 200,000/ Age 18-45 years Mark-up (variable) 1 year KIBOR + 2.00% p.a. The customer will pay markup @ 6% p.a., rest will be borne by GOP* (Life & disability insurance paid by GOP)
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Home Financing Home Purchase Home Construction Home Renovation Purchase of Land + Construction Balance Transfer Facility (BTF) NBP Saibaan NBP Saibaan (Open the Door to Your Dream Home) Home Financing
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Personal Loan Easy installments of 1 to 60 months at your choice No minimum income collateral & insurance charges required Quick processing and fastest disbursement The product is for permanent employees of Government, Semi Government and Autonomous bodies receiving salaries through NBP accounts
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ATM + Debit Card Use it as an ATM in any of the ATMs in Pakistan Use it as Debit Card in any of the outlets with ORIX POS machine Cash withdrawal up to Rs. 20,000/- per day Account Balance Enquiry Mini Statement (Only at NBP ATM) PIN Change facility (Only at NBP ATM)
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Financing Facility for Stock Investors Comfortable environment for trading No security requirement, except for the customers equity Customers equity freely available for investment Equity acceptable in cash or approved shares
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Ready Cash Against Gold
Facility of Rs. 10, 000/-against each 10 gms of net weight of Gold Ornaments No maximum limit of cash Repayment after one year Roll over facility No penalty for each repayment
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Product Information:
Pakremit is an internet based Home Remittance Service. This service is available to U.S. residents for sending money to their family and friends in Pakistan. One must have a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit funds through this channel. Remitters in USA can log on to our user friendly website, www.pakremit.com and easily remit funds to Pakistan from the comfort of their homes, in a matter of minutes. The service is fully secure with advance encryption application and is available for use 24 hours a day, 7 days a week. Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well.
Process:
Remitters log on to www.pakremit.com and after completing the registration process, are able to remit funds. The whole process takes a few minutes. Funds in Pak Rupees can be sent to beneficiaries, having an account with any bank in Pakistan, including NBP. While funds are credited directly to beneficiaries maintaining accounts with NBP, a pay order or demand draft is couriered to other banks for their customers. Pay order or demand draft can also be couriered directly to the beneficiarys office or home, if requested by the remitter. Funds in US Dollars can be sent only to a Beneficiary maintaining a US Dollar account with one of NBPs Foreign Exchange Branches. Click here for details of NBP Foreign Exchange Branches
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UNIQUE SELLING PROPOSITION : (USP)

1. Convenient and Fast 2. Reliable and Secure 3. Available 24 x 7
Personal Accident Insurance

No documentation No medical required Premium Auto Debit facility & choice of deactivation Coverage includes death due to: Natural Calamities e.g. Earthquake, Flood, Cyclone etc. Accident Riots* Civil Commotion* Strikes* Acts of Terrorism* NBP Protection Shield NBP Protection Shield (Life is Precious)
* Provided the insured is not actively involved in these activities
Coverage of Rs. 200,000/- for Rs. 20/- per month
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SERVICES AND OTHER PRODUCTS OF NBP:

Since NBP is a commercial bank, it performs a variety of Functions; Like other Commercial banks.NBP is engaged in financing international trade. Its other major functions include receiving deposits, advancing loans and discounting of Exchange. The functions performed by NBP are:
Accepting Deposits:
This function is important because banks largely depend on the funds deposited with them by its customers. Deposits are of many types:
CURRENT DEPOSITS:
Current deposits are also called Demand Liability on current deposits.NBP pays practically no interest on current deposits. Businessmen usually open current accounts. In NBP current account can be opened with a minimum amount of Rs. 500/-.
PLS SAVING DEPOSITS:

Profit and loss sharing deposits (PLS) are also called Checking Accounts. One can deposit and draw money easily. Profit on PLS is calculated every month but paid after six months.PLS account can also be opened with a minimum amount of Rs. 500/-.
PLS TERM DEPOSITS:

Fixed term deposits are deposits with the bank for certain fixed period before the expiry of which they cannot be withdrawn unless giving due notice. In this case the rates of profit will be different depending upon the time period.
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Discounting bills of exchange

Discounting of Bill is practically speaking lending for exchange at their market rate i.e.it pays to holder of the bill an amount equal to the face value after deducting interest at the current market rate for the period. This will has to be mature. This is the common way use for keeping apart of assets of the bank in the liquid form.
Agency Services
NBP also provides best and unique service to its valued customers. NBP provides the following agency services to the customers:
COLLECTION OF DIVIDENDS
As NBP deals with the purchase and sale of various types of securities, therefore NBP also provides dividend or interest earned on share or bonds or invested money.
COLLECTION OF CHEQUES
In the collection and payment of Cheques, bills and promissory notes etc. National Bank of Pakistan acts as an agent for its customers.
ACTING AS AN AGENT
NBP also acts as an agent correspondent or representative for its customer at home or abroad.
General Utility Services

Utilities provided by NBP are as follows:
CLEARANCE OF UTILITY BILLS

NBP provides the service of clearing the utility bills i.e. electricity, gas and telephone bills of its customers. For this purpose it also provides evening banking services.
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LOCKERS FACILITY
National Bank of Pakistan also provides lockers facilities to its customers to keep their valuable assets in it. The charges of different size of lockers are different.
ACT AS A REFEREE
NBP provides full useful services to its customers by acting as a referee to their credit worthiness.
SUPPLY OF INFORMATION
NBP provides operational and advisory service for Foreign exchange accounts/activities. The prestigious periodical The Banker UK recognized NBP as the best bank in year 2001-2002.And NBP is the bank of the year for 2003-2004.
SERVICES OF NBP
INTERNATIONAL BANKING:
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :
To effectively manage NBP's exposure to foreign and domestic correspondence Manage the monetary aspect of NBP's relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank's profitability Generation of incremental trade-finance business and revenues
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NBP offers: The lowest rates on exports and other international banking products Access to different local commercial banks in international banking
DEMAND DRAFT:
If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBP's Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch.
TYPES OF DEMEND DRAFT ISSUED: JUNIOR DEMAND DRAFT: From Rs. 1--------- Rs. 1000 SENIOR DEMAND DRAFT: From Rs. 1001---------- Rs. 10,000 DEMAND DRAFT: From Rs. 10,001---------and above
ISSUANCE OF DEMAND DRAFT CHARGES: (Exchange) Upto Rs. 100,000/Upto Rs. 1000,000/Over Rs. 1000, 000/0.10% or minimum Rs.50 0.05% or minimum Rs.100 0.04% or minimum Rs.400
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FORMAT OF DEMAND DRAFT:
DEMAND DRAFT National Bank of Pakistan Town Branch Not over Rs. On Demand Pay To Rupees To National Bank of Pakistan Code No: Officer Value Received For National Bank of Pakistan Manager Dated: Garden
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SWIFT SYSTEM
The SWIFT system (Society for Worldwide Interbank Financial Telecommunication) has been introduced for speedy services in the area of Home Remittances. The system has built in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of Home Remittances. The SWIFT Center is operational at National Bank of Pakistan with a universal access number NBP-APKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT. Using the NBP network of Branches, you can safely and speedily transfer money for your business and personal need.
PAY ORDERS
NBP provides another reason to transfer your money using our facilities. The pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive. Pay Orders must be paid and issued by the same branch of the bank.
ISSUANCE OF PAY ORDER CHARGES

For Account Holder For Non Account Holder Rs. 50/Rs. 100/-
ISSUANCE OF DUPLICATE PAY ORDERS CHARGES

For Account holders For Non Account Holder Rs. 100/Rs. 150/-
Rs.25 from student for payment of Fee favouring educational institutions.
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MAIL TRANSFER
Mail Transfer is used for all mail remittances intended for credit of constituents accounts receiving office, for payment to parties resident in the areas under their jurisdiction and also whenever an account (whether current or savings) is transferred from one office to another. Move the money safely and quickly using NBP Mail Transfer service. And NBP also offer the most competitive rates in the market. In case of Account Holder, only his signature and account number is required whereas in case of Non Account Holder his copy of CNIC along with full name, address, telephone number and signature are required.
ISSUANCE OF MAIL TRANSFER CHARGES

Upto Rs. 100,000/Upto Rs. 1000,000/Over Rs. 1000,000/0.10% or Minimum Rs. 50 0.05% or Minimum Rs. 100 0.04% or Minimum Rs. 400
NATIONAL BANK OF PAKISTAN The Manager
NO; MT A-11020
MAIL TRANSFER ADVICE National Bank OF Pakistan Please debit NBP General Account with the sum of Rs. make the following payment . SR.NO Name of Payee On account of Amount and
National Bank of Pakistan

TRAVELLERS CHEQUES
Pak Rupees Travellers Cheques are a
Negotiability:
negotiable instrument At 700 branches of NBP all over the
Availability: Encashment: Limitation: Safety:
country At all 400 branches of NBP No limit on purchase NBP Travellers Cheques are the safest way to carry our money There is no restriction on the period of
Validity:
validity Pak Rupees Traveler's Cheques are a
Negotiability:
negotiable instrument
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LETTER OF CREDIT:
NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
COMMERCIAL FINANCE:
Our dedicated team of professionals truly understands the needs of professionals, agriculturists, large and small business and other segments of the economy. They are the customer's best resource in making NBP's products and services work for them.
FOREIGN REMITTANCES:
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to:

Increase home remittances through the banking system Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries
New Features:
The existing system of home remittances has been revised/significantly improved and well-trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides United National Bank (the joint venture between NBP and UBL in UK)., and Bank Al-Jazira, Saudi Arabia.

Zero Tariff: NBP is providing home remittance services without any charges. Strict monitoring of the system is done to ensure the highest possible security.
Special courier services are hired for expeditious delivery of home remittances to the beneficiaries.
SHORT TERM INVESTMENT:

NBP now offers excellent rates of profit on all its short term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBP's rates of profit are extremely attractive, along with the security and service only NBP can provide.
EQUITY INVESTMENT:
NBP has accelerated its activities in the stock market to improve its economic base and restore investor confidence. The bank is now regarded as the most active and dominant player in the development of the stock market. NBP is involved in the following: Investment into the capital market Introduction of capital market accounts (under process) NBP's involvement in capital markets is expected to increase its earnings, which would result in better returns offered to account holders.
N.I.D.A:
National Income Daily Account The scheme was launched in December 1995 to attract corporate customers. It is a current account scheme and is part of the profit and loss system of accounts in operation throughout the country.
TRADE FINANCE AND OTHER BUSINESS LOANS:

AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who produce some of the best agricultural products in the World.
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Agricultural Finance Services: I Feed the World program, a new product, is introduced by NBP with the aim to help farmers
maximize the per acre production with minimum of required input. Select farms will be made role models for other farms and farmers to follow, thus helping farmers across Pakistan to increase production.
Agricultural Credit:
The agricultural financing strategy of NBP is aimed at three main objectives:
Providing reliable infrastructure for agricultural customers Help farmers utilize funds efficiently to further develop and achieve better production Provide farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming.
Agricultural Credit (Medium Term):

Production and development Watercourse improvement Wells Farm power Development loans for tea plantation Fencing Solar energy Equipment for sprinklers
Farm Credit:
NBP also provides the following subsidized with ranges of 3 months to 1 year on a renewal basis.

Operating loans Land improvement loans Equipment loans for purchase of tractors, farm implements or any other equipment
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Livestock loans for the purchase, care, and feeding of livestock
Production Loans:
Production loans are meant for basic inputs of the farm and are short term in nature. Seeds, fertilizers, sprayers, etc are all covered under this scheme.
CORPORATE FINANCE: Working Capital and Short Term Loans:

NBP specializes in providing Project Finance Export Refinance to exporters Pre-shipment and Post-shipment financing to exporters Running finance Cash Finance Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-shipment / Post Shipment Agricultural Production Loans
Medium term loans and Capital Expenditure Financing:

NBP provides financing for its clients' capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients' attempt to upgrade and expand their operation thereby making possible the fulfilment of our clients' vision. This type of long term financing proves the bank's belief in its client's capabilities, and its commitment to the country.
Loan Structuring and Syndication:

National Bank's leadership in loan syndicating stems from ability to forge strong relationships not only with borrowers but also with bank investors. Because we understand our syndicate partners' asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction.
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Cash Management Services:

With National Bank's Cash Management Services (in process of being set up), the customer's sales collection will be channelled through vast network of NBP branched spread across the country. This will enable the customer to manage their company's total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, you'll be provided everything, which takes to manage your cash flow more accurately.
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PRICE
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service Price is what is charged for something
WHAT IS PRICING?
The second major and important marketing mix tool is PRICE. Prices are the easiest marketing mix element to adjust; product features, channels and even promotion take More time, price also communicates to meet the companys intended value positioning at its product or brand. Although non-price factors have become more important in recent decades. Price still remains one of the most important elements in delivery marketing share and profitability.
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BANK CHARGES EFFECTIVE FROM 01-01-2009:

INTERNATIONAL BANKING
LETTER OF CREDIT.
1.1.1. Opening of cash Letters of Credit

ANNUAL VOLUME DURING A CALENDAR YEAR Ist Qtr. Or part thereof
Each Sub.Qtr or part thereof.
Minimum amount Per L/C
a.Upto Rs.20 (M) b. Upto Rs.50 (M) c. Upto Rs.100 (M) d. Upto Rs.250 (M) e. Upto Rs.500 (M) f. Upto Rs.1,000 (M) g. Above Rs.1,000 (M)
0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10%
0.20% 0.20% 0.20% 0.20% 0.15% 0.10% 0.05%
RS.1000
On expiry of L/C when the same is revalidated, revalidation commission should be recovered as is applicable for opening of Fresh Letter of Credit. L/C commission will be calculated on the amount of liability as per exchange rate prevailing on the date of revalidation When a Letter of Credit is transferred to a new
Revalidation Commission
Transfer Commission
beneficiary, transfer commission should be charged as applicable in case of Fresh Letter of Credit.
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Approval from SBP from re-import of consignment back to Pakistan L/C Cancellation Charges
Rs.2,000/- (Flat) per case.
Rs.1, 500/- (Flat) Plus actual telex / SWIFT charges
Non-reimbursable Letter of Credit under Barter/Aid/Loan and authorization to pay
1% on 1st quarter and 0.30% for each Subsequent quarter or part thereof Minimum of Rs.2000/-
L/C under Suppliers/Buyers Credit, Pay as you Earn Scheme and Deferred payment L/Cs for period one year
Commission @ at the time of opening of LC at the rate upto 0.40% or part thereof till the final payment.
Amendments Issuance of Standby Letters of Credit (i.e) beneficiaries in foreign countries) directly or through correspondent bank/banks foreign branches/offices.
Rs.750/- per transaction (Flat) 0.40% per quarter or part thereof Rs.1000/- plus correspondent bank charges if any. Swift/Telex US$ 20/- per telex / swift message
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i) 40 Paisas per Rs.1000/-(or as Advice) on daily per Sanction reimbursement till the date of retirement (i.e. 14.60% p.a.) Mark-up in case of Import Bill under Import Letter of Credit or ii) Mark-up rate arrived at based on 1 month KIBOR (ask rate) +4.00% p.a. whichever is higher.
Import Bills returned unpaid
a. Handling of discrepant Import Documents., US$ 50(flat) to be recovered from the proceeds remitted.
b. Handling
charges US$ 50/- (Flat) from any.
forwarding Bank plus Courier charges if
Collection
Rs.750/- (Flat) per collection provided no charges are realized from the correspondent.
Consignments 0.20% (Flat) handling charges at the time of registration of contract/ purchase order/ invoice Minimum Rs.500/-
Import against advance payment to suppliers Service charges against
Rs.750/- (Flat) plus usual remittance Charges
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Import transactions i.e. Import Bills/PAD/Collection
EXPORTS
Processing Charges for Export Registration Rs. 200/-(Flat)
Returning charges for export bills
Rs. 200/-(Flat)
Letter of Credit
Advising Rs.400/-(Flat)
Amendment Advising
Rs.300/-(Flat)
Negotiation of Bills against Letters of Credit issued under Barter/Remittance from SBP Confirmation
0.25% mininmum Rs.200/-
0.25% per quarter Minimum Rs.250/-
Transfer of Export L/Cs. Reimbursement payment to other local Bank from Non-Resident Rupee Account
Rs. 450/-(Flat)
Rs. 400/-(Flat)
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EXPORT BILLS
Documents are sent to other banks for negotiation under restricted Letter of Credit.
CHARGES
Rs.350/-( Flat)
DUTY DRAW BACK

CLAIMS
Handling of export documents against which advance payment is received Collection FEBCs, DBCs, FCBCs, Special USSDBs, and coupon
CHARGES
0.25% of the amount of claim Minimum Rs.250/- per claim.
Rs.200/- (Flat) plus postal charges. 0.20% Minimum Rs.200/- Max. Rs.500/-
COLLECTIONS
Clean Cheques/Drafts/FTCs
CHARGES
Rs.100/- per Collection (Flat)
Documentary (on which bank do not earn any exchange difference)
Rs.200/- per Collection (Flat)
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REMITTANCES
OUTWARD
Foreign Traveller Cheques Remittance abroad through Foreign Currency Account
CHARGES
1% of the amount of Traveller Cheques sold Min. Rs.200/Commission @ US$ 1.00 per US$ 1,000/- or part thereof Min. US$ 5.00 Maximum US$ 25.00 plus Telex / SWIFT charges: Rs.250/- per Telex /SWIFT in case of telegraphic transfer.
Remittance against surrender of F.C Notes or cash deposited in F.C Account within 10 days from the date of such deposits
In addition to charges mentioned under 3.1.2. service charges @ 1.0% to be recovered in case the remittance amount exceeds US$ 5,000/- or its equivalent in other foreign currencies.
Inward Collection received (relating to F.C Account) from US$ 3.00 per US$ 1,000/- or part thereof abroad or local Minimum banks/branches and where the US$ 3.00 Maximum US$ 6.00 payment is demanded in Foreign Currency Inward cheques expressed in foreign Currency drawn on foreign currency A/cs received from local/upcountry banks branches for payment in Pak Rupees after conversion at authorized dealers buying T.T clean rates
Commission @ Paisas 15 per Rs. 100/- Minimum Rs.200/-
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REMITTANCES ABROAD OTHER THAN THROUGH FOREIGN CURRENCY ACCOUNT

Outward
Students (for education purposes)
Charges
Rs.50/- plus telex charges Rs.200/- per telex (if telex required) or usual postal charges Rs.50/- per US$ 1,000/- Min. Rs.200/- and Max. Rs.500/- plus telex charges Rs.300/- per telex for telegraphic transfer or usual postal charges.
Other than students
Service Charges against issuance of Foreign Mail Transfers (FMTs) Foreign Demand Drafts (FDDs)Foreign Telegraphic Transfer (FTT)& Travellers Cheques (TCs) against Pak Rupee.
@ Paisas 10 % or Rs.1/- per Mille.
FDD/FTT/FMT Cancellation Charges for foreign currency account Issuance of Duplicate FDD Foreign Bills sent for collections returned unpaid Standing Instruction Charges in Foreign Currency Accounts Charges for Cheques returned unpaid (when fault lies with the customer) to be recovered from the client on whose behalf the instrument is being collected and collecting bank will apply these charges.
Rs.200/- per item plus telex/postage charges
Rs.300/- plus usual telex/postage charges Rs.350/- (Flat) plus telegram charges if any US$ 5.00 per instruction Rupee Account 200/- per cheque F.C. Account US$ 5/-per cheque
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REMITTANCES
INWARD
Home Remittance
CHARGES
No Charges (Zero Tariff)
Others
Nil, if proceeds are credited to an account with the drawee bank. In other case a flat charges of Rs.10/-
Encashment (Purchase) of Traveller Cheques
Rs.100/-(Flat)
Service Charges on payment of Inward Foreign Drafts/Foreign Mail Transfers where payment is made to beneficiaries after @ Paisas 15 per Rs.100 /-Minimum Rs.200/payment cover is received to our Foreign Currency Account. These charges are to be recovered only when T.T buying rate is applied.
Commission/Handling Charges Nil, if no remittance effected within 10 days of the date on Deposits of Currency notes for of deposit, otherwise remittance charges the credit of Foreign Currency Accounts.
Collection of Foreign Currency Accounts
US$ 5.00 for collection upto US$ 1,000/-, US$ 15.00 for collection above US$ 1,000/-.
Foreign Bills sent for collections returned unpaid
Rs.350/- (Flat) plus telegram charges if any
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MISCELLANEOUS
Postage/Cable/Fax/Courier
At actual subject to Minimum, as under :-
Postage (Ordinary)
*. Local Rs.25/* Inland Rs.40/
Postage (Registered)
Local Rs.30/ Inland Rs.50/ Foreign Postage at actual Min. Rs.100/-
Telegram
Local/Inland Rs.50/ Local Rs.20/-
Telex /Fax/Telephone/Swift
Inland Rs.25/- per minute Min. Rs.50/ Foreign: Full Telex / SWIFT L/C/Guarantee and long Message Rs.1,200/- for full message for short message Rs.400/L/C/Guarantee amendment, Telegraphic Transfer and Miscellaneous messages Rs.1,200/- for full message. Rs.400/- for short message o Local Rs.50/o Inland Rs.70/o Foreign Rs.1,100/Rs.500/- (Flat) per certificate. Rs.500/- (Flat) per certificate.
Courier
Issuance of proceeds certificate beyond one year Issuance of Business Performance certificate at customers request
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DOMESTIC BANKING REMITTANCES

Issuance of Drafts, MTs, & TTs:
Upto Rs 100,000/- 0.10% Minimum Rs.50/Upto Rs.1,000,000/- 0.05% Minimum Rs.100/Over Rs.1,000,000/- 0.04% Minimum Rs.400/-
Issuance of Duplicate Draft For account holders For non account holders Telegram Charges on TTs (whether through Telex/ SWIFT /Fax) Rs.200/Rs.250/Actual, Minimum Rs.75/-
Trunk Call charges on issuance of T.Ts
Rs.100/- (Flat)
Postage on MTs
* Actual Minimum Rs.30/- if sent by Registered post locally, * Rs.50/- if sent by Registered post Inland on partys request.
Courier Charges
Local Rs.50/Inland Rs.75/-
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PAY ORDER
Issuance of pay order:1. For account holder 2. For non-account holder 3. For Students Rs.50/- (Flat) Rs.100/-(Flat) Rs.25/- (Flat ) from student for payment of fee favouring educational institution
Issuance of duplicate Pay order:1. For account holder 2. For non-account holder
Rs.100/- (Flat) Rs.150/-(Flat)
Issuance of call deposit receipt:1. For account holder 2. For non-account holder Rs.50/Rs.100/-
Inland Travellers Cheque. (other than NBP if any)
0.25% Minimum Rs.25/-
Inland Letters of Credit
(Opening commission) Annual Business Upto Rs.50 (M) 0.40% per quarter or Upto Rs.75(M) 0.35% part thereof Upto Rs.100(M) 0.25% Above 100 (M) Negotiable Minimum Rs.1,000/= Without increase in amount or extension in period of shipment Rs.500/- (Flat) Involving increase in amount and/or extension in period of shipment Rs.500/- per transaction/commission as per item as above.
Amendment Charges
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BILLS
COLLECTION:-
Documentary Bills
0.40% Minimum Rs.50/- plus postage /courier charges.
Clean (including cheques/dividend warrants/bank drafts etc)
0.20% Minimum Rs.50/- plus postage/courier charges as mentioned above.
For NBP own cheques/DD/PO
0.15% Minimum Rs.50/- plus applicable postage/courier.
Purchase of bills, cheques etc. Documentary Bills other than those drawn against Letters of Credit
0.25% Minimum Rs.50/- plus applicable postage/courier charges.
Clean Bills (trade cheques, bank draft etc.)
0.40% Minimum Rs.25/- plus applicable postage/courier charges.
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SIGHT BILLS
Negotiating end
Negotiating Commission @ 0.50% Min. Rs.500/-
Collection Charges (Inland L/Cs)
Rs.500/- (Flat)
Collection Charges for restricted L/C (where Negotiation is restricted to some other Banks and presented to us for forwarding).
Rs.500/- (Flat)
At opening end (at the time of retirement) rate of Mark-up. Mark-up @ 45 Paisas per Rs.1,000/- on daily product If retired within 3 days from plus Banks Commission @ 0.25% the date of lodgment If retired after 3 days of lodgement
If negotiation is restricted to some Forwarding Bank/Branch would charge handling other bank. charges of Rs.200/- (Flat) per bill (commission will
not be applicable).
Inland L/C cancellation charges
Rs.500/- (Flat)
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USANCE BILLS
At opening end a. Handling Charges.
b. If bills matures after expiry of L/C
Rs.0.40% per bill Minimum Rs.500/- at the time of retirement of bill. Usual Charges as in (a) above plus delivery of documents against acceptance commission @ 0.10% per month on bill amount on realisation from the date of expiry of L/C but Minimum Rs.500/-.
At Collecting end. a.Collection Charges b. In case of purchase
Commission @ 0.30% Minimum Rs.200/Usual Commission as in (a) above and keep mark down @ 0.75% for every 15 days from the date of purchase till the date of maturity.
Discounting of Inland Usance Bills
Mark-up @ 25 paisa per Rs.1000/- on daily product (or per Sanction Advice) plus flat Commission @0.1%.
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PROJECT FINANCES/ADVANCES
Project Application Fee (Non-refundable) Following charges will be recovered in addition to mark-up/Return on Investment. Miscellaneous (i.e. charges for documentation, evaluation of security and maintenance thereof etc.)
At actual, in addition: 1. Project examination fee @ 0.50% (flat) after acceptance of sanctioned by the company but before disbursement of the total amount of sanctioned (Funded and Non Funded Both) Minimum Rs.15,000/2. Legal documentation fee. @ 0.25% Flat after acceptance of sanctioned by the Company but before disbursement of the total amount of sanctioned (Funded and Non Funded Both) 3. Project monitoring fee @ 0.50% p.a. payable quarterly on outstanding amount (Funded and Non Funded Both) 4. Commitment fee @ 1.50% p.a. payable quarterly on the un-disbursement amount of sanction (Funded only) 5. Front End/Arrangement Fee. @ 1.50% (Flat) wherever applicable as per Banks discretion.
GODOWN CHARGES
Godown Rent. Salaries of Godown Keepers/Chowkidars Actual Actual
Godown Inspection Charges. a. Without any municipal limit.
Actual Treatment Debit to party account if Godown Inspection charges are upto Rs.500/- for payment to staff. Debit to party and credit to bank Income Account if Inspection charges are more than
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Rs.500/- and reimbursement of TA/DA charges through debit to Expenditure Account with the approval of Competent Authority. Delivery Charges:If a godown keeper is not posted Conveyance Charges will recovered. Other incidental expenses: Insurance premia. Legal Charges. be Actual
Actual Actual
Handling charges on marking of lien Rs.500/- (Flat) per customer (to be on Govt. Securities recovered by the Branch where the loan is applied) Marking of lien on Securities issued by NBP for other banks Rs.500/- (Flat) per customer
STANDING INTRUCTIONS FEES

Standing Instructions fee will be recovered in addition to the usual charges on remittances, if any. Rs.100/- per transaction.
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SALE AND PURCHASE OF SECURITIES SAFE CUSTODY ARTICLES IN SAFE DEPOSITS & SAFE DEPOSITS LOCKERS
Sale and purchase of shares and Securities a. Rs.0.50% upto Rs.10,000/- of purchase price or cost thereof Minimum Rs.50/b. Rs.0.10% on amount exceeding Rs.10,000/Minimum Rs.75/-
Shares & Securities held in safe Rs.0.50% (Flat) per annum or part thereof of the custody as a result of order of face value with the minimum of Rs.300/purchase executed through the bank (to be recovered up front)
Withdrawal fee on shares and a. 0.25% upto Rs.10,000/- of the paid up or face securities held in safe custody value, Minimum Rs.50/(to be recovered at the time of b. 0.125% on amount exceeding Rs.10,000/withdrawal.)
Withdrawal fee on Government Securities
Rs.10/- per scrip.
Charges for collection of interest/ return /dividend
0.30% on the amount of interest/return/ dividend collected/ paid, Minimum Rs.20/-
Handling Charges for conversion, renewal, consolidation or Sub-division of Government Securities.
Rs.10/- per scrip.
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SAFE-DEPOSIT LOCKERS
Safe Deposit fee (to be recovered in advance at the time of deposit or at the commencement of each Quarter) For Boxes and Packages . For Envelopes
Rs.4/- per 100 cubic inches or any part thereof with a minimum of Rs.300/- per quarter Rs.2/- per 25 square inches or any part thereof with a minimum of Rs.300/-
Breaking Charges
Rs.2,000/- per locker or Actual
LOCKERS CHARGES
LOCKER SIZE KEY DEPOSITS
Rs.4,000/-
ANNUAL RENT CHARGES

Rs.2,400/- per annum
SMALL MEDIUM LARGE EXTRA LARGE
Rs.5,000/Rs.6,000/Rs.8,000/-
Rs.5,000/- per annum Rs.10,000/- per annum Rs.12,000/- per annum
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GUARANTEES
Charges for borrowing customers As per arrangement
Guarantees issued to shipping companies in lieu of Bills of Lading or endorsement of copy Airways Bills in absence of original Airways Bill.
Rs.1,000/- (Flat)
Guarantees issued to Collector of Custom in lieu of payment of Export Duty which are valid upto 6 months Issuance of foreign guarantees (i.e beneficiaries in foreign countries) directly or through correspondent bank/banks foreign branch/offices
0.50% per quarter or part thereof Minimum Rs.1,000/- (2.00% per annum).
0.40% per quarter or part thereof Minimum Rs.1,000/-plus correspondent bank charges if any. Swift/Telex US$ 20/-per Telex/Swift message Postage US$ 10/- per postage
Other Guarantees
Based on volume during a Calendar Year: Upto (a) Rs. 15 (M) 0.40% per Qtr or part thereof (b) Rs. 30 (M) 0.30% per Qtr or part thereof (c) Rs. 50 (M) 0.25% per Qtr or part thereof (d) Rs. 100 (M) 0.20% per Qtr or part thereof (e) Above Rs. 100 (M) Negotiable Minimum commission Rs.1,000/- per annum per guarantee wherever guarantee validity is less than one year.
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Amendments
Rs.300/- per amendment (Flat) or 0.40% per quarter or part thereof if amendment involves increase in amount or extension in validity Minimum Rs.500/-
MISCELLANEOUS CHARGES
Service Charges on PLS Saving Accounts including dormant, inoperative with monthly average balance below Rs. 5,000/Rs.50/- per month
Service Charges on current Accounts including dormant, inoperative with monthly average balance below Rs.5,000/
Rs.50/- per month
Service Charges on Foreign Accounts including dormant, inoperative with monthly average balance below US$1,000/- or equivalent amount in other foreign currencies
US$ 3/- per month (Service Charges not applicable to Foreign currency accounts of NBP employees[in service or retired] or their spouses)
Duplicate statements of account older than one year.
Rs.50/- per statement of account
Issuance of SBP/NBP Cheques.
Rs.300/- per cheque
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Handling charges for issuance of students exchange remittance permit and maintenance of record for subsequent remittance.
Rs.200/- per annum
Stop payment of cheque
Rupee A/c Rs.150/- per instruction. F.C A/c US$ 5/- per Instruction
EXTRA
Clearance of Cheques where Clearing House Facility not established Collection/encashment of profit coupons on Govt/Saving Centers under lien to us Verification of banks/parties test for other Rs.250/- (Flat) No Charges
Rs.200/- per trip
Credit information report Foreign correspondent/reporting agencies including credit Report on foreign charges at actual + Telex Charges. suppliers/buyers. Registration of contract with SBP in respect of private foreign currency loan obtained by borrowers in Pakistan from foreign lenders Confirmation of balances to auditors Handling charges Rs.5,000/- (Flat.)
Rs.400/-
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Balance Confirmation Certificate
Rs.100/- per certificate
Issuance of new cheque book in lieu of lost cheque book (Rupee Rs.100/- per request plus excise duty if any. A/c only). These Charges are in US$ 2/- in F.C Account. addition to stop payment charges as prescribed above. Issuance of loose cheque Account closing charges Issuance of Cheque Book Mailing Charges for Cheque Book. Rs.50/- per cheque Rupee A/c Rs.250/- for Local Currency or entire amount if balance in the account is below Rs.250/-. Rs.3/- per leaf (plus excise duty if any) Actual
ATM FACILITY CHARGES
ATM Facility
ATM card will be issued free of cost. However, annual renewal fee of Rs.300/- will be charged. Transaction cost for NBP customer using another bank ATM under 1-LINK ATM/MNET ATM SWITCH Service Rs.15/- per transaction. Balance Inquiry: Free, in case of using 1-Link ATM, Rs.5/- in case of using MNET ATM. ATM Card Lost / Replacement Charges: Rs.150/-. ATM Card Pin Re-issuance Charges: Rs. 100/-
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PLACE
Placement includes the activities that make the product available to target customers.
DISTRIBUTION NETWORK
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business use. It is also known as marketing channel. Companys channel decision affects every other marketing mix decision. Marketing channels or distribution channels that look forward toward the customer. Downstream marketing channel partners such as wholesalers and retailers, from a vital connection between the firm and its customers. Pricing Depends on whether the company works with national discount chains, uses high quality specialty stores or sells directly to consumers over the web. Promotion and communication Decision depends on how much persuasion, training, motivation and support its channel partners need. Acquiring or Developing New product depends upon how well these products fit the capabilities of its channel members.
NBP BRANCH NETWORK

NBP branch networks include: ATM Network Domestic Network Islamic Network Online Network Overseas Network Swift Network Customer Facilitation Centres Agriculture Branches
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BRANCHES ALL OVER PAKISTAN

The Head Office of NBP is located in Karachi and the Bank has 1440 domestic branches. YEAR 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1991 1995 1997 1998 1999 2000 2001 2002-2009 TOTAL BRANCHES 17 29 40 52 65 67 73 85 105 129 156 194 239 330 450 519 618 1421 1537 1468 1434 1434 1375 1245 More than 1200
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Branches in Lahore
Branch Code
Branch Details
Main Branch Lahore (Hub Branch)
300
303
Anarkali Branch
313
Gardee Trust Building Branch
323
D.H. Society (Circular Road)
324
Civil Secretariate Branch Lahore
356
Lahore Cantt. Corporate Branch
372
Model Town Lahore
390
Pakistan Railway Headquarters
409
Regal Chowk Branch
413
Jinnah Hall Lahore
416
Wapda House Branch
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430
Garhi Shahu
449
Samanabad Lahore
452
Shahdara Branch
465
Main Market Gulberg
466
LDA Plaza Branch
479
PCSIR Branch
483
Hotel Ambessador Lahore
490
Pak Admn. Staff College
493
Chauburji Branch
496
Allama Iqbal Airport Lahore
509
Jail Road Branch
518
Raiwind
539
Lytton Road Branch
540
Baghbanpura
628
Pearl Continental Hotel Lahore
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649
Mughalpura
757
Shahalam Market Branch
877
Dina Nath Mansion Branch
950
Dry Port Lahore
979
Wahdat Road Fareed Plaza Branch
981
Krishan Nagar Branch Lahore
982
Gowal Mandi Branch
983
Mozang Chungi
1397
Chamra Mandi Lahore
1405
Data Darbar Branch
1441
Kahna Nau
1442
ACP Model Corporate Branch
1518
Queens Road Branch Lahore
1523
Saddar Bazar Lahore
1524
Davis Road
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1537
New Garden Town
1569
Model Branch Gulberg (Hub Branch)
1587
Ismail Nagar
1606
Multan Road Branch
1607
New Muslim Town
1618
Walton Road
1619
Lady Willington Hospital
1655
Shahpur Kanjran
1669
Township Branch
1707
Shaikh Zaid Hospital
1741
Faisal Town Lahore
1857
Rehman Plaza Corporate Branch
1887
Allama Iqbal Town Lahore
1917
Tech. Society Branch
1948
Mall Road Punjab Provincial Assembly
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1966
Block 'Y' Commercial Area Phase-III DHA,
1996
Bund Road Gulshan-e-Ravi Lahore
1997
Badami Bagh Lahore
2045
University of Punjab Quaid-e-Azam Campus Lahore
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OVERSEAS BRANCHES
There are 23 Overseas Branches: USA EGYPT BAHRAIN BANGLADESH U.K Wall Street New York, UN Plaza New York Washington D.C. and Chicago CAIRO MANAMA DHAKA LONDON MANCHESTER, GLASGOW, BRADFORD, EDINBURGH, SHEFFIELD, BIRMINGHAM & KNIGHTSBRIDGE (LONDON)
FRANCE CHINA UZBEKISTAN SAUDI ARABIA GERMANY HONK KONG JAPAN KOREA
PARIS BEIJING(REP. OFFICE) TASHKENT BANK AL-JAZEERAH BRANCHES FRANKFURT HONG KONG & KOWLOON TOKYO & OSAKA SEOUL
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PROMOTION
Promotion means activities that communicate the merits of the product and persuade target customers to buy it
Building good customer relationships calls for more that just developing a good product, pricing it attractively and making it available to target customers. Companies must also communicate their value proposition to customers and what they communicate should not be left to chance. All of their communications must be planned and blended into carefully integrated marketing communications programs. Just as good communication is important in building and maintaining any kind of relationship, it is a crucial element in a companys efforts to build profitable relationships.
PROMOTION TOOLS
Promotional Tools
Advertising
Sales Promotion
Relations
Personal Selling
Direct Marketing
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PROMOTIONAL ACTIVITIES AT NBP

Promotion is one of the most important contributors to the success of any organization whether it is a banking company or a non-banking company. NBP realizes the importance of this variable of marketing mix. In todays competitive environment promotion has emerged as an important factor along with the quality of services and products. Although NBP has not much involved in promotional activities but they are trying to develop such activities to attract customers. A bank with marketing philosophy and orientation, the client is always placed at the centre of the business and all of the products and services are designed to serve the customers in best possible way. Through organizing sports events NBP is trying to increase its Public relations. Explanation of sport events are given below:
SPORTS
Physical activity is essential for everyone. It Builds self Confidence and can be an excellent group activity for your family and friends. Exercise is an activity that transcends age. The NBP sports Complex is open for all its customers and for others also.
A STATE-OF-THE-ART SPORT COMPLEX

Recently, Mohammed Mian Soomro, the caretaker prime Minister of Pakistan, performed the formal inauguration of the National bank of Pakistan (NBP) Sport Complex in Clifton. Sindh Governor, Dr. Ishrat-ul-Edab khan, provincial minister and Governor of State Bank of Pakistan, Dr. Shamshad Akhtar have also graced the occasion. The Caretaker Prime Minister in his inaugural speech had stated that the whole NBP sport Complex was very well planned and deserved compliments for the architecture that made optimum use of the
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space. He also says that Health and sports compliment each other because healthy minds and bodies are less susceptible to ailments. So the Bank organizes and develops the sport complex for the sake of society and those people who are not avail the healthy life. The NBP chief was of the view that the sports wing of his Bank was the most organized one in the country. He said the NBP sponsors sports in all parts of the country and provides jobs to sportsmen. Syed Ali Raza said that to tap the talent, the NBP has been organizing coaching camps for crickets, hockey and football in various parts of the country at the grassroots level.
SOCCER
The Pakistan Premier League (PPL) is the first division of Pakistani football. It was established in 2004, in place of the National Championship by the Pakistan FootBall Federation. It was a knock-out competition, which remained this way until it was replaced by the Football League in 2004. Football in Pakistan remained underdeveloped for decades due to mismanagement, lack of support and corruption. However in August 2003, with the support of FIFA under their Goal Project, and new management within the Pakistan Football Federation, Pakistan restructured the national football system. The National Football Championship was replaced in 2004 by the national football league, called the National Division. National Bank of Pakistan is Sponsor Pakistan premier league in 2004, 2005, 2006, 2007, 2008. NBP want to be Healthy people who take part in every activity, and watch them the domestic soccer. National bank of Pakistan mostly sponsors the domestic Football league. NBP promote the youngsters who have talented.
HOCKEY
Pakistan Hockey Federation has named a panel of Technical Officials to conduct All Pakistan NBP Junior Hockey Cup to be played at the Hockey Club of Pakistan Karachi from November 28 to December 5. The competition will be organized by National Bank of Pakistan.
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Gulfraz Ahmed Khan, Honorary Secretary Karachi Hockey Association, will be the Organizing Secretary of the tournament. The technical briefing meetings will be held by the Tournament Director on November 2007. National Bank of Pakistan is great emphasis on Hockey Cup in domestic basis. And NBP promote the culture of Hockey Matches on Domestic as well as all over the world.
CRICKET
National Bank of Pakistan (NBP) is Sponsors different Cricket events on Domestic bases. The list of those events is as follow:
Inter-Region Under 19 Tournament 2007/08 Inter-Region Grade II Tournament 2007/08 Inter-District Under 19 Tournament 2007/08 PCB National Schools Under-17 Women's Championship 2007/08 Inter-District Senior Tournament 2007/08
NBP organize through sponsorship to those events and also participate in these events. NBP also organize or sponsor International Cricket events in Pakistan.
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National Bank of Pakistan Website
Advertisements in the Press:

NBP mostly gives advertisements for its products and services in some of the leading newspapers. Advertisements for job opportunities are also placed in the daily newspaper magazines. But there is still need to increase promotional activities in NBP. No doubt NBP has good reputation and it is one of the leading and profitable bank but promotional activities are very important for any organization for maintain its status.
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Banking on Your Faith

NBP is proud to expand its range of products and services by including Shariah Compliant Banking Products, available through dedicated Islamic Banking Branches. Each Islamic Banking Branch is fully equipped to cover all aspects of Islamic financial transactions. Valuing your adherence to your faith, NBP now provides a premium choice for you in meeting your financial needs, free of RIBA.
DEPOSIT SCHEMES
Deposit Schemes being offered by NBPs Islamic Banking Branches would include the following:

Current Deposit Scheme Profit & Loss Sharing (PLS) Deposit Scheme
CURRENT DEPOSIT SCHEME
Ideal for customers looking for security of their funds along with absolute convenience in its use, in the form of Current accounts Funds deposited with the bank will be utilized by the bank at its sole discretion in Shariah acceptable avenues. The Customer will have the flexibility to withdraw a part or the whole of their balances at any time as per their requirement This is a non remunerative deposit scheme and thus the customer will not be sharing the profits nor will be sharing losses (if any). However, the Bank may at its absolute discretion give rewards to
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these Depositors depending upon the operational results of the Bank. Losses will not be passed on to these Depositors.
PROFIT AND LOSS SHARING
PLS Saving Deposits Scheme will accept deposits on Mudaraba basis, where the depositor will be Rabb-ul-Mal and Bank will be Mudarib. The Bank will invest the deposited funds at its (Banks) sole discretion in Shariah acceptable avenues The Depositor will have the flexibility to withdraw a part or the whole of their balances at any time as per their requirement. The Bank will give profit to the Depositors on the basis of agreed ratio of actual profits to be announced by the Bank from time to time. In the event of financial loss, the PLS depositors will bear the loss in proportion of their investment. The Depositors will not participate in the management of the business of the Bank
Other terms and conditions as well as rules for PLS Deposit Account to be advised by the Bank at the time of opening of Account.
PROFIT SHARING RATIO Rub ul Mall Mudarib 81% 19%
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WEIGHTAGES FOR THE MONTH OF JULY 2009
Deposit (in PKR) Saving Deposits

5,000 to 99,999 100,000 to 999,999 1,000,000 to 4,999,999 5,000,000 to 9,999,999 10,000,000 to 49,999,999 50,000,000 to 99,999,999 100,000,000 to 999,999,999 200,000,000 & above
Weight
0.4695 0.4695 0.4695 0.4695 0.4695 0.4695 0.4695 0.7746
Term Deposits
Less than 50 Million 0. 4695 0.4695 0.4695 0.9389 0.9859 1.0328 1.0798 1.1267
TDR 01 month TDR 3 months TDR 6 months TDR 12 months/ 1 year TDR 2 Years TDR 3 Years TDR 4 Years TDR 5 Years More than 50 Million TDR 12 months/ 1 year TDR 2 Years TDR 3 Years TDR 4 Years TDR 5 Years
1.0798 1.1032 1.1267 1.1502 1.1737
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Historic Profit Rates

Deposit Categories Jan. 09 Feb. 09 March 09 Actual Profit Rates April 09 May 09
Saving Deposits
5,000 to 99,999 100,000 to 999,999 1,000,000 to 4,999,999 5,000,000 to 9,999,999 10,000,000 to 49,999,999 50,000,000 to 99,999,999 100,000,000 to 199,999,999 200,000,000 & above 5.15% 5.15% 5.15% N/A N/A N/A N/A N/A 5.15% 5.15% 5.15% N/A N/A N/A N/A N/A 4.95% 4.95% 4.95% N/A N/A N/A N/A N/A 4.99% 4.99% 4.99% N/A N/A N/A N/A N/A 4.85% 4.85% 4.85% 4.85% 0.00% 0.00% 0.00% 0.00%
Term Deposits
Less than 50 Million TDR 01 month TDR 3 months TDR 6 months TDR 12 months/ 1 year TDR 2 Years TDR 3 Years TDR 4 Years TDR 5 Years More than 50 Million TDR 12 months/ 1 year TDR 2 Years TDR 3 Years TDR 4 Years TDR 5 Years
N/A N/A N/A
N/A N/A N/A
N/A N/A N/A 9.91% N/A 10.90% N/A 11.89%
N/A N/A N/A 9.97% N/A 10.97% N/A 11.97%
0.00% 0.00% 0.00% 9.70% 0.00% 10.67% 0.00% 11.64%
10.30% 10.30% N/A N/A 11.35% 11.33% N/A N/A 12.36% 12.36%
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
11.47% N/A N/A N/A N/A
11.15% 0.00% 0.00% 0.00% 0.00%
NOTE: N/A represents Non-Availability of Profit Rates under Deposit Categories having NIL balance
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Financing Facilities
Commercial and Corporate customers requiring financing will have the following financing facilities available to them to meet their requirements:
MURABAHA
Murabaha may be defined as a contract between a Buyer and Seller under which the Seller discloses to the Buyer the cost of goods being sold and adds an agreed profit. Price is payable on spot or at a certain future date, in lump sum or in installments (deferred payments).
Murabaha Facility
1. Under the MURABAHA FACILITY, the Bank will first purchase the required goods directly or through an Agent. All costs incurred on such purchases will be borne by the Bank. 2. Subsequently the Bank will sell the goods to the customer on deferred payment basis (30 days to one year) at an agreed price comprising cost of goods purchased and Bank's profit.
3. On due date the customer will pay to the Bank the agreed price, in lump sum or as per the agreed
installment schedule.
IJARAH
Ijarah means to give something on rent. The term IJARAH is analogous to the English term leasing. Firstly the Bank will purchase the Assets as required by the Customer and subsequently the assets will be leased to the Customer on the terms and conditions as agreed with him. Ijarah Facility will be offered for the following assets:

Vehicles (both Commercial and Private) Office Equipment Plant and Machinery
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Balance Sheet
As At December 31, 2008 2008 2007
ASSETS
Cash and balances with treasury banks Balances with other banks Lending to Financial Institutions Investments Advances Operating Fixed Assets Deferred Tax Assets ther Assets 106,503,756 38,344,608 17,128,032 170,822,491 412,986,865 24,217,655 3,204,572 44,550,347 817,758,326 (Rupees in 000) 94,873,249 37,472,832 21,464,600 211,146,038 340,318,930 25,922,979 30,994,965 762,193,593
LIABILITIES
Bills payable Borrowings Deposits and other Accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred Tax Liabilities Other Liabilities NET ASSETS 10,219,061 40,458,926 624,939,016 25,274 39,656,831 715,299,108 102,459,218 7,061,902 10,815,176 591,907,435 33,554 5,097,831 30,940,041 645,855,939 116,337,654
REPRESENTED BY Share Capital Reserves Unappropriated profit
8,969,751 19,941,047 52,456,204 81,367,002 21,092,216 102,459,218
8,154,319 15,772,124 45,344,188 69,270,631 47,067,023 116,337,654
Surplus on revaluation of Assets
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Income Statement
2008
Mark-up/Return/Interest earned Mark-up/Return/Interest expensed Net-Mark-up/interest Income provision against non-performing advances Provision for/(reversal of) diminution in the value of investment Provision against off balance sheet obligations Bad debt written off directly Mark-up/interest Income after provisions 60,942,798 23,884,768 37,058,030 10,593,565 373,249 4000 26,087,216
2007
50,569,481 16,940,011 32,629,470 4,723,084 (40,248) 39,899 28,906,735
Non-Mark-up/interest Income
Fee,commision and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities-net Unrealized/(loss) on revaluation of investments classified as held-for-trading Other income Total Non-Mark-up/interest Income Non-Mark-up/interest expenses Administrative expenses Other provisions/write offs Other charges Total Non-Mark-up/interest expenses Profit Before Taxation Taxation-current -prior years -deferred Profit After Taxation Un-appropriated profit brought forward Transfer from surplus on revaluation of fix assets of incremental depreciation Profit available for appropriation HINA MASOOD O7 18,171,198 747,521 583,367 19,502,080 23,000,998 11,762,650 (4,220,242) 7,542,408 14,205,911 168,027 171,141 14,391,079 28,060,501 8,311,500 391,497 323,731 9,026,728 7,925,370 2,878,932 3,969,057 395,427 1,707 1,245,369 42,503,078 6,781,683 3,263,246 1,042,827 2,341,690 (31,964) 147,363 42,451,580
15,458,590 19,033,773 45,344,188 32,074,677 130,456 39,007 60,933,234 51,147,457 Page 146
HORIZONTAL ANALYSIS Balance Sheet
Assets Cash & Balances with treasury Banks Balances with other banks Lending to financial institutions-net Investment-net Advances-net Operating fix assets Deferred tax Assets-net Other assets Liabilities Bill payables Borrowings Deposit and other accounts Liabilities against assets subject to finance lease deferred tax liabilities-net other liabilities Net Assets Represented By Share capital Reserves Unappropriated profit Surplus on revaluation of Assets-net
2008(%) 112 102 80 81 121 93 144 107 145 374 106 75 0 128 111 88 110 126 116 117 45 88
2007(%) 121 92 93 151 108 268 114 120 67 92 118 253 214 116 117 142 115 114 141 131 163 142
Growth 16.5 -3 -13 16 14.5 80.5 29 14 6 133 12 64 7 22 14 15 12.5 20 28.5 24 4 15
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ANALYSIS
Total assets growth rate is 140% this is because of Cash and Balances with treasury banks grow by 60% which caused by increase 21% in 2007 and 12% in 2008, Advances-net grow by 40.5% in current year increase by 21% as compare to 8% in 2007. Operating fixed assets growth rate 80.5% but current year Operating fixed decrease by 7% Other assets also show a greater increase from 14% to 44% in current year and its growth rate approximately 29%,while lending to financial institution shows declining trend since last few years over all declining 13% and Balance with other banks declining at rate of 3%. Liabilities growing by 14% Other liabilities increase from 16% to 28% with growth rate 22%, Borrowing and Liabilities against subject to finance lease show greater increase with growth rate of 133% and 64% respectively, and Bill payable & deposit in other banks also increasing with growth rate of 6%-12% respectively, Equity show positive trend with growth rate of 24% this is because of Reserves and Un-appropriated profit increasing with rate of 20% and 28.5% & Share capital increasing with 12.5%.
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VERTICAL ANALYSIS BALANCE SHEET
Assets Cash & Balances with treasury Banks Balances with other banks Lending to financial institutions-net Investment-net Advances-net Operating fix assets Deferred tax Assets-net Other assets Liabilities Bill payables Borrowings Deposit and other accounts Sub-ordinate loans Liabilities against assets subject to finance lease deferred tax liabilities-net other liabilities Net Assets Represented By Share capital Reserves Un-appropriated profit Surplus on revaluation of Assets-net
2008 13.02 4.7 2.1 21 50.5 3 0.4 5.5
2007 12.4 4.9 2.81 27.7 44.7 3.4 0 4.066
2006 12.38 6.4 3.6 22 49.77 1.5 0 4.3
1.43 5.7 87 0.0035 0 5.5 87.5 12.5 11 24.5 64.5 10 2.5 12.5
1.1 1.7 92 0.0052 0.8 5 85 15 11.77 23 65.5 9 6 15
1.7 1.8 79 0.0021 0.4 4 87 13 1 2 5 8 4.5 13
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ANALYSIS
Cash & balance with treasury Banks is increase in current year from 12% to 13% of total assets portion of balance with other banks shows decreasing trend in current year 4.7% of total assets as compare to 4.9% and 6.4% in 2007 and 2006 respectively, lending to financial institution decreasing other assets portion is increasing in current year which is 5.4% of total assets as compare to 4.06% and 4.3% in 2007 and 2006 respectively. Total liabilities show increasing trend in current year which is 87.5% of total assets as compare to 84.7% and 87.1% in 2006 and 2007, this increase is because to greater increase in bill payable, borrowing and other portion of liabilities. Net assets portion is decreasing this decrease because of increase in liabilities which means in NBPs debts increase, equity portion also increasing as compare to previous year of equity portion this increase because of increasing in reserves, the increase in equity show that the NBPs dependence on equity financing increasing while the dependence on debt financing decreasing.
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INDEX ANALYSIS
2008(%) Mark-up/Return/Interest earned Mark-up/Return/Interest expensed Net-Mark-up/interest Income provision against non-performing advances Provision for/(reversal of) diminution in the value of investment Provision against off balance sheet obligations Bad debt written off directly Mark-up/interest Income after provisions Non-Mark-up/interest Income fee,commision and brokerage income dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities-net Unrealized/(loss) on revaluation of investments classified as held-for-trading Other income Total Non-Mark-up/interest Income Non-Mark-up/interest expenses Administrative expenses Other provisions/write offs Other charges Total Non-Mark-up/interest expenses Profit Before Taxation Taxation-current -prior years -deferred Profit After Taxation Un-appropriated profit brought forward Transfer from surplus on revaluation of fix assets on account of incremental depreciation Profit available for appropriation 164.45234 64.452341 100 28.586422 1.0072014 0.0107939 0 29.604418 70.395582
2007(%) 150.3725 50.37252 100 14.04448 -0.11968 0 0.118643 14.04344 85.95656
2006 (%) 146.2537 46.25373 100 10.20015 -2.35281 0 0.017524 7.864855 92.13515 20.37768 9.590045 4.423468 3.87851
21.386377 20.16589 7.768713 9.703531 10.710383 3.100932 1.0670481 6.963208 0.0046063 3.3605915 44.297719 114.6933
-0.09505 -0.0148 0.438196 2.081395 40.27671 40.3363 126.2333 132.4714 44.58303 -0.05732 0.690883 45.2166 87.25484 87.25484 28.83757 1.759823 0.20555 30.80294 56.4519 64.24589 0.136169 120.834
49.034441 42.24245 2.0171634 0.499642 1.5741824 0.05097 52.625787 42.79306 62.067514 83.44021 62.067514 83.44021 31.741164 24.71493 0 1.164149 -11.3882 0.962641 20.352965 26.84172 39.016078 56.59849 122.35995 95.37669 0.3520317 164.42653 0.115991 152.0912
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ANALYSIS
Markup/ interest unearned show increasing trend last few years but markup/ expensed increase which is 64.5% of interest income as compare to 50% and 46% in 2007 and 2006, markup interest income after provisions show decreasing trends since 2006 this decrease because of greater increase in provision against non performing advances and provision for/ diminution in the value to investment. Total no markup/ interest income show increasing trend which is because of greater increase in income from dealing in foreign currency and fee, commission and brokerage income and other income, profit before taxation show declining trend this is because of increase in the portion of interest expense in current year which is 52.6% as compare to 43% and 45% in 2007 and 2006, interest expense increase in because of increase in admin expenses, other provision/ write off and other charges also increasing. Profit after taxation show greater declining which is because of increasing in taxation which was 31.74% of interest income, the decrease in profit after taxation most effective decreasing profit before taxation.
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LIQUIDITY RATIOS:
RATIO HOW CALCULATED 2008 2007 2006 23,012,732 11,704,079 1.96*100 197 2005 16,282,942 8,756,847 1.859*100 186
Due from bank Due from Bank*100 to due to bank Due to Bank ratio
17,128,032 21,464,600 40,458,926 10,815,176 0.423*100 42.33 1.98*100 198.5
RATIO
HOW CALCULATED
2008 17,128,032 624,939,016 0.0274*100 2.74
2007 21,464,600 591,907,435 0.036*100 3.626
2006 23,012,732 501,872,243 0.0458*100 4.585
2005 16,282,942 463,426,602 0.035*100 3.514
Due Due from Bank*100 from Total Deposit bank to due to deposi t ratio
Comparison over the years / Interpretation:

The ratio should be stable; there should be no drastic change. But here we see a decreasing trend. This ratio is favorable since it is following a declining trend from 2005, it is more in 2006 but in 2008 it is decreased. The reduction in this ratio depicts that the cost on the deposits have increased but the cost on the borrowings from financial institutions has also decreased.
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PORTFOLIO MANAGEMENT RATIO:

RATIO HOW CALCULATE D Advances Total Assets 2008 2007 2006 2005
Advances to total assets ratio
412,986,865 817,758,326 0.5050
340,318,930 762,193,593 0.4465
316,110,406 635,132,711 0.4977
268,838,779 577,718,806 0.4653

The ratio shows that the advances increased in 2008 but not to a greater extent since assets other than advances have too increased causing the total assets to rise. It illustrates that the Bank is using other sources of income besides its core operation as well.
RATIO
HOW CALCULATED Investment Total Assets
2008
2007
2006
2005
Investment to total assets ratio
170,822,491 817,758,326 0.2089
211,146,038 762,193,593 0.2770
139,946,995 635,132,711 0.2203
156,985,378 577,718,806 0.2717

There is a slight change in this ratio, investments alone have increased but it is not contributing to a great extent. The Bank is not earning from investments where as the bank should consider this source of earning as well.
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Lending to Financial institution to total Assets ratio:

RATIO HOW CALCULATED Lending to financial institution Total Assets 0.0209 0.0282 0.0362 0.0282 2008 2007 2006 2005
Lending to Financial institution to total Assets ratio
17,128,032 817,758,326
21,464,600 762,193,593
23,012,732 635,132,711
16,282,942 577,718,806
The ratio is stable and favorable which shows that the Bank has sufficient funds to lend to financial institutions.
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CAPITAL ADEQUACY RATIO: Capital Fund to total Assets ratio:

RATIO HOW CALCULATED Capital Fund Total Assets 2008 2007 2006 2005
Capital Fund to total Assets ratio
81,367,002 817,758,326 0.0995
69,270,631 762,193,593 0.0909
53,044,649 635,132,711 0.0835
37,635,706 577,718,806 0.0651
The ratio is increasing that means bank has sufficient assets which is a great source of economic resources and there is no greater financial risk.
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Capital Fund to total Deposits ratio:
RATIO
HOW CALCULATED Capital Fund Total Deposits
2008
2007
2006
2005
Capital Fund to total Deposits ratio
81,367,002 624,939,016 0.1302
69,270,631 591,907,435 0.1170
53,044,649 501,872,243 0.1057
37,635,706 463,426,602 0.0812

This ratio indicates the protection of depositors. This ratio is showing increasing trend from previous years yet maximum in 2008 , so it has better position than last year.
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FINANCIAL LEVERAGE RATIO: Debt Equity Ratio:

RATIO Debt to Equity Ratio HOW CALCULATED Long term Debt Equity 2008 10,219,061+ 40,458,926+ 624,939,016 81,367,002 675,617,003 81,367,002 8.303 2007 7,061,902+ 10,815,176+ 591,907,435 69,270,631 609,784,513 69,270,631 8.803 2006 10,605,663+ 11,704,079+ 501,872,243 53,044,649 524,181,985 53,044,649 9.882 2005 1,741,156+ 8,756,847+ 463,426,602 37,635,706 473,924,605 37,635,706 12.59
Debt to Equity ratio tells us that the creditors are providing 8.303 paisa for financing for each Rs. 1 being provided by share holders for the year 2008 which has decreased from the previous years. Creditors would generally like this ratio to be low. The low the ratio, the higher the level of Banks financing that is being provided by shareholders and the larger the creditor cushion (Margin of protection) in the event of shrinking assets values or outright losses.
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Debt to Total Assets Ratio:

RATIO HOW CALCULATED Total Debt Total Assets 2008 2007 2006 2005
Debt to Total Assets ratio
715,299,108 817,758,326 0.874
645,855,939 762,193,593 0.847
553,178,593 635,132,711 0.871
501,900,862 577,718,806 0.868

The greater the ratio, the lesser is the firms financial risk. From year 2005 to 2008, it is stable while maximum in 2008 which shows the proportion of assets being financed by debt has decreased.
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PROFITABILITY RATIO: Net Profit Margin:

RATIO HOW CALCULATED Net profit after Taxation *100 Interest Earned 2008 2007 2006 2005
Net profit margin ratio
15,458,590 60,942,798 25.37
19,033,773 50,569,481 37.64
17,022,346 43,788,628 38.87
12,709,444 33,692,665 37.72
In year 2006, the profit generated was huge. The net interest income has increased over the three year span. During 2008, the profitability position was much better than 2005. The markup interest expensed was less as compared to 2007 and 2005.
The profitability has declined in 2008 but still good enough.
Operating Expense Ratio:

RATIO
HOW CALCULATED
2008
2007
2006
2005
Operating Non Markup Expense expenses *100 Ratio Gross income
19,502,080 16,415,862+ 60,942,798 25.21
14,391,079 13,544,845+ 50,569,481 22.45
13,634,485 12,162,892+ 43,788,628 24.37
11,483,293 9,392,351+ 33,692,665 26.65

The ratio depicts the total operating expenses divided by the effective gross income. This ratio means that the operating expenses have reduced and that the Bank is managing its operating cost effectively.
Administrative Expense to total Deposit Ratio:
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RATIO
HOW CALCULATED
2008
2007
2006
2005
Administra Administrative tive expenses *100 Expense to Total Deposits total deposit Ratio
19,502,080 624,939,016 2.901
14,391,079 591,907,435 2.400
13,634,485 501,872,243 2.679
11,483,293 463,426,602 2.421

The spread of the administrative expenses on the deposits with the Bank has increased and mostly stable. This ratio shows that the Bank is significantly controlling its administrative expenses on the operations of the deposit accounts. The ratio is showing a stable trend with little bit increasing. But it should be towards decreasing trend.
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Total assets turnover

RATIO HOW CALCULATED Mark up Earned*100 Total Assets 7.452 6.635 6.894 5.832 2008 2007 2006 2005
Total assets turnover
60,942,798 817,758,326
50,569,481 762,193,593
43,788,628 635,132,711
33,692,665 577,718,806
This ratio measures the relative efficiency of total assets to generate sales. The ratio is increasing from 2005 to 2008. It shows that it is generating 7.45 sales per 1 unit of assets which is good enough.
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Return on Assets
RATIO HOW CALCULATED Net profit After Taxation Total Assets 0.0189*100 1.89 0.0249*100 2.497 0.0268*100 2.680 0.0219*100 2.199 2008 2007 2006 2005
Return on Assets
15,458,590 817,758,326
19,033,773 762,193,593
17,022,346 635,132,711
12,709,444 577,718,806

This ratio measures overall effectiveness in generating profits with available assets; earning power of invested capital. The ratio has increased in 2006 and then declined in 2008. This ratio should be higher.
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Risk assets Turnover

RATIO HOW CALCULATED Net Interest Income After Provisions Risk Assets 2008 2007 2006 2005
Risk assets Turnover
26,087,216 412,986,865 0.0632
28,906,735 340,318,930 0.0849
27,782,170 316,110,406 0.0879
21,146,970 268,838,779 0.0787
Return on Equity
RATIO HOW CALCULATED Net profit After Tax Capital Fund 0.1899 0.275 0.321 0.338 2008 2007 2006 2005
Return on Equity
15,458,590 81,367,002
19,033,773 69,270,631
17,022,346 53,044,649
12,709,444 37,635,706

This ratio is more meaningful for share holders who are interested to know the profit earned by the company because the dividend paid from available profit higher ratio means factor of production fully utilized and good position. Here ratio is stable in 2005 and 2006 but decrease in 2007 and 2008.Decreasing trend of this ratio is an alarming sign for the Bank.
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Current Ratio
RATIO HOW CALCULATED Current Assets Current Liabilities 2008 2007 2006 2005
Current Ratio
106,503,756+ 38,344,608+ 17,128,032+ 44,550,347
94,873,249+ 37,472,832+ 21,464,600+ 30,994,965
78,625,227+ 40,641,679+ 23,012,732+ 27,113,698
71,196,956+ 31,019,330+ 16,282,942+ 23,941,056
10,219,061+ 40,458,926+ 624,939,016+ 39,656,831
7,061,902+ 10,815,176+ 591,907,43
10,605,663+ 11,704,079+ 501,872,243
1,741,156+ 8,756,847+ 430,426,602+ 23,496,910
+ 30,940,041 +26,596,300
206,526,743 715,273,834 0.289
184,805,646 108,007,862 1.711
169,393,336 550,778,285 0.308
142,440,284 480,091,815 0.297
From the above calculated figures, it has been deduced that the current ratio has fluctuated over four years time span. It is maximum in 2007 i.e. 1.711 but again decreased in 2008 i.e. 0.289. The Banks cash flows and other assets are not predictable; therefore the current ratio is not acceptable.
This indicates that for every worth Rs.1 current liability, the bank has the current assets of worth Rs. 0.289 which is not favourable.
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Current Assets to Total Assets Ratio

RATIO HOW CALCULATED Current Assets Total Assets 2008 2007 2006 2005
Current Assets to Total Assets Ratio
106,503,756+ 38,344,608+ 17,128,032+ 44,550,347
94,873,249+ 37,472,832+ 21,464,600+ 30,994,965
78,625,227+ 40,641,679+ 23,012,732+ 27,113,698
71,196,956+ 31,019,330+ 16,282,942+ 23,941,056
817,758,326 206,526,743 817,758,326 0.252
762,193,593 184,805,646 762,193,593 0.242
635,132,711 169,393,336 635,132,711 0.267
577,718,806 142,440,284 577,718,806 0.246

The ratio shows the portion of current assets in the total assets of the Bank. The ratio is continue on increasing trend, a little bit decrease in 2007 but again increased from 0.24 to 0.25 in 2008 which shows a good sign but it should be more.
Ratio of Current Asset to Total Assets

1.5 1 0.5 0 2006 2005
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Advances to total Deposits ratio:
RATIO
HOW CALCULATED Advances Total Deposits
2008
2007
2006
2005
Advances to total Deposits ratio
412,986,865 624,939,016 0.661
340,318,930 591,907,435 0.575
316,110,406 501,872,243 0.630
268,838,779 463,426,602 0.580

The ratio signifies that the deposits are more than the advances and that there has been a declining trend for the years 2006 to 2007 but increasing in 2007 to 2008 but increasing in 2007 to 2008. The bank is not spending, utilizing or using its deposits in several sectors of economy on which the Bank is loosing returns, which could have been earned by advancing them. Although the advances and deposits have increased from previous years but the altogether effect is not favorable.
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Interest Coverage Ratio:
RATIO
HOW CALCULATED Profit before Tax Interest Expensed
2008
2007
2006
2005
Interest Coverage ratio
23,000,998 19,502,080 1.179
28,060,501 14,391,079 1.949
26,310,577 13,634,485 1.929
19,056,028 11,483,293 1.659

The ratio is decreasing over four years span and shows the bank strength to pay off its financial charges in form o f interest. This ratio should be higher. The bank has earned the interest from the advances being spent in different sectors of the economy. This has resulted in overall increase in the profit before taxation, which decreased the ratio.
Ratio of Current Asset to Total Assets

1.5 1 0.5 0 2006 2005
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GENERAL BANKING
General banking area is also call the operations group. It consist on following section ACCOUNTS SECTION REMITTANCES CLEARING SYSTEM GOVERNMENT RECEIPTS CONSUMER AND RETAIL BANKING LOCKERS
Accounts section:
Accounts Department of the bank can be considered the most important department. This department is basically concerned with processes and activities of recovering, sorting, summarizing and reporting data resulting from the whole day transactions of all the departments. Actually the process of this activity starts from the preparation of all the required vouchers by different related departments. When these vouchers are prepared, these are posted into respective computer terminals by the relevant departments. Before merging, a batch list is printed out by Computer Department and duly checked by the respective departments. After this, merging stage comes, after which a proof list is printed out. This is the stage, where Accounts Department starts performing its function. Proof list is checked by the Accounts Departments. This section performs the following functions: Opening of Accounts Issuance of cheque books Closing of accounts Payment of Cheques
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Types of accounts
Following types of accounts are open in NBP Saving account Current or demand account
Fixed account
Saving account (PLS)

This type of account is designed to encourage the saving habit of the customer and lead to a long-term banking or investment relationship. Bank saving accounts are in the nature of deposits accounts and are not normally available for drawings. Rates of interest are typically ahead, by a small margin. Saving accounts with the banking sector represent a very small proportion of total deposits. Customer can make any withdrawals from type of account. The cash reserve ratio is typically low them the current account because the withdrawals against this account is very low. The minimum balance for this account is Rs.500/
Current or demand account

These are those deposits, which can be drawn by the depositor at my time by presenting a cheque to the bank. People deposit their money in this account they gave a ready command on their account in developed and under developed countries of the world, a very significant part of money is kept under current or demand account. On this type of account of interest transfer of cash or by cheque takes place at sight. The cash reserve ratio for this account is very high. The operating cost for the handling of this type of account is very high because withdrawals are very regular.
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Fixed account
Fixed accounts are those, which are deposited for a fixed period of time and are repayable after
the expiry of stipulated time to the customers. Those people who have surplus funds and want to have save investments deposit the amount in the fixed account. The rate of interest given to depositor varies with the length of deposit, i.e. it is higher for longer period and lowers for shorter period. The rates on this type of deposits are higher than the saving bank accounts. The cash reserves against this deposit are very low because there is no fear of withdrawal of a month before the stipulated of time. No paying books or passes book or cheque book is issued. The authorities of national bank of Pakistan have the right to revise all these rates of interest with out any notice to customers generally rates of interest are revised after six months. The amount deposited for 7 and 30 days short term notice and accumulated for the period exceeding the limit and the customers can get the interest of the extra days of deposit but in the case of months and years the customer did not get any additional interest for the exceeding period of deposit.
Procedure for Opening an Account

First of all, the customer gets an application from the bank, which requires all information necessary for opening account and also the documents required. An account can be opened as: An individual account Joint account Proprietorship account Limited company account Partnership Club, society, association and trust
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APPLICATION FOR ACCOUNT OPENING:
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Information Required by the Bank:

Name Address Telephone No. Currency of Account Nature of Business Country of Residency Special instructions regarding the account Signatures
Documentation In case of limited company accounts:

Photocopy of National Identity Card of each director Application form Copy of companys memorandum and articles of association List of directors Copy of board resolution Certificate of incorporation Their signature cards
Certificate to commence business
Documentation In case of Partnership Account:

Application form A copy of partnership deed Signature cards of partners Registration certificate copy A copy of National Identity Card of each partner
Documentation In case of Club, Society, Association or Trust:

Application form Copy of rules Certified copy of resolution Signature cards
When the concerned officer is satisfied then he opens the account and gives an account number that will be used in all communications with the bank in regard to the account and when making deposits and withdrawals. Bank has the right not to open an account without assigning any reason or to close the account if it is not operated in a satisfactory manner by the instructions of the head office.
Issuance of Cheque Book

After opening the account, a cheque book is given to the customer to sign upon which the number of cheque book issued and the name of the customer is written. Bank issues a cheque book against requisition. A cheque book may be of 20 (PLS), 25, 50 or 100 leave (current A/C). Rs. 4.50 per leaf as excise duty is charged to the customer. A cheque book register is maintained by the office. In this register, the cheque book inventory, cheque books issue are recorded. For the First time issuance of Cheque book. Following form is required:
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Loose Cheques
Issuance of loose cheque by the bank as he does not has his cheque book with him and the money is urgently required, the this cheque is called the loose cheque. If any customer forgets or leaves his cheque book at his home, which is far away from the bank or whatever the case may be, the customer applies with the bank for loose cheque. The Bank issues a loose cheque for Rs. 50 as charges for the issuance of the loose cheque plus Rs. 4.50 as excise duty.
Payment of Cheques
It is banks primary function to repay the money required for its customers account usually by honoring his cheques. It is a contractual obligation of a banker to honor its customers cheque if the following essential are fulfilled:
Cheque should be in a proper form Cheque should not be mutilated Cheque should be drawn in this particular branch Cheque should not be damaged No unauthorized material alterations Funds must be sufficiently available Cheque should not be post date or stale Cheque should be presenting during the banking hours
Procedure for Closing an Account

The customer can close the account. Customer is required to submit an application for closing the account. Then the account is closed out and his balance is paid to him after deducting the closing charges, i.e., Rs. 200 and the application is filed in Account Closing File. Remaining leaves of cheques will also be collected from the customer.
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The activities of Accounts Department can further be divided as:
Routing of expenses vouchers Preparation of daily activity reports Preparation of weekly and monthly statements Preparation of statements for tax purpose
Routing of Expenses
Vouchers of all expenses and material purchases are routed out through this department. As far as the expenses are concerned, they include the heads of salaries paid to confirmed employees of bank, wages paid to employees that are on contractual basis, rent of the building, lease installment and insurance premium paid to insurance company for the insurance of vehicles and cash in safe and counter. Expenses also include the utility bill, which consists of courier, electricity, water and gas bills, medical expenses, which are reimbursed.
Preparation of Daily Activity Reports

As far as the daily activity reports of this department are concerned, these include the following heads:
Voucher collecting of
Loan transactions General ledger transactions Foreign currency related transactions Fixed deposit related transactions
The checking is on daily basis.
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Preparation of Daily, Weekly Monthly and Annual Statements Daily Statements

These statements are sent daily to Main Office Karachi. These are: Daily Affair Statement, which is same as Balance Sheet Statement of Income and Expenditure, which includes the details of income generated and expenses incurred by the bank.
Weekly Statements
These statements are generated on weekly basis for the purpose of sending it to Head Office. These also include: Statement of affair Deposit and advances position of the bank
Monthly Statements
These statements are prepared on monthly basis and also sent to Head Office (Qatar). These include:
Provisional statement of income and expenses. This statement adjusted for accruals and prepayments. Monthly Balance Sheet and Income Statement Comparative Statement
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Statements for Tax Purpose

The department also prepares two statements for the purpose of paying tax on monthly and annual basis. These statements are generated for the purpose of submitting to Central Board of Revenue. These are: Statement of deduction of income chargeable under the head salary under Section 53 (Tax deducted at source) Withholding Tax from the payments made to vendors, suppliers and other parties providing various services. The rate of withholding tax is as follows:
Suppliers For other parties
2.5% 5%
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CASH DEPARTMENT
NBP cash depart is responsible for handling all receipt & disbursement of cash. Each and every transaction which involves cash, is through Cash department so, cash department is involved in almost all transactions of the bank. NBP cash department also keeps record of all receipt & payments for the maintenance of book keeping. Cash department enters all transactions in Cash Scroll Register. NBP cash department is also responsible for the safety of cash available to them and no one is allowed to enter in that area where they carry all the cash related functions. NBP cash department mainly performs two functions:
Receive deposits Encashment of instruments
FUNCTIONS OF CASH DEPARTMENT

Cash department performs the following functions:
Receipt
The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards.
Payments
It is a bankers primary contract to repay money received for this customers account usually by honoring his cheques.
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The Requisites of Cheque

There is no prescribed form of words or design of a Cheque, but in order to fulfill the requirements Cheque must have the following. It should be in writing The unconditional order Drawn on specific banker only Payment on Demand Sum Certain in money Payable to a specific person Signed by the drawer
Types of Cheques
Bankers in Pakistan deal with three types of cheques:
a) Bearer Cheques
Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing.
b) Order Cheque
These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing.
c) Crossed Cheque
These cheques are not payable in cash at the counters of a banker. It can only be credited to the payees account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque.
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RESPONSIBILITIES OF CASH DEPARTMENT
To pass all the entries instantly after they happen. To maintain Cash Scroll register in a proper manner. To posted the stamps according to the transaction. To assign all tasks properly every one. No one person should assign more than one task. Proper verification of all the particulars of the instrument. To safe all the funds of the bank because this is only one department who is allowed to handle cash. No one should be allowed to enter in that area where they perform cash related transactions To affirm the signatures properly To verify the signatures, on the back of the instrument. To send the transaction in deposit department, for further proceeding. To know about the status of ATM machine. To fill the ATM machine requirements according to the demand of that area clients. At the end, to match Cash department register balance to Deposit department & also to computerized total, to safe the cash department from any worrisome situation.
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CLEARANCE DEPARTMENT
NBP is providing many valuable services to its valuable clients for their facilitation, to save their valuable time and also to safe them from any difficulty. So, a most important service of NBP is clearing. Clearing department plays an important role in the activities of the NBP.
CLEARANCE
The transfer of funds from one branch
to another branch or from one bank to another bank through NIFT.
NIFT (National Institutional Facilitation Technology) NIFT is a clearing house which has been established by SBP to facilitate the commercial banks in their activities and functions.
NIFT maintains an account for each and every bank who is its member. It performs all the functions according to the instructions of SBP. It clears all the instruments which are drawn from one bank to another bank. One officer from every member bank comes daily in NIFT with all the instruments which should be cleared. NIFT have the right to refuse the settlement of the instrument if NIFT is not satisfied from the particulars of that instrument.
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Types of Clearing
Clearing department deals with two main types of clearing
INWARD CLEARANCE
(Credit Clearing) If an instrument is drawn on any other bank or branch, and instrument is presented in NIFT to give credit to NBP city branch client. This is Inward clearance of NBP. In inward clearance inflows of funds happen.
OUTWARD CLEARANCE
(Debit Clearance) If an instrument is drawn on NBP and presented in NIFT for clearance, and to Debit NBP account holder debit, it is called outward clearance. In such clearance, outflow of funds happen.
SAME DAY CLEARANCE

It happens within one day. Such clearance happens before 12Pm. Commission charges are applied on it. Such cheques amount should be more than 5 Hundred Thousand.
INTER CITY CLEARANCE

It includes 5 cities. It is also through NIFT.
Lahore Karachi Islamabad Faisalabad Multan

CHEQUE TYPES FOR CLEARANCE

Three types of cheques are handled by clearing department. In house cheques Local cheques Outstation cheques
IN HOUSE CHEQUES
These are the cheques which are drawn from NBP one branch to NBP another branch.
LOCAL CHEQUES
These are the cheques which are drawn from one bank to another bank. These are presented in NIFT for clearance purpose. This clearance is performed among NIFT members.
OUT STATION CHEQUES

These are the cheques which are drawn from one bank to another bank within a country and outside a city. It is among two such cities which located in two different cities. It is performed through NIFT in five cities. Any other transaction of out of city which does not involve NIFT is called collection.
RESPONSIBILITIES
Sorting of cheques To visit NIFT To check the reason of any instrument cancellation from NIFT
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Billing and Government Receipt/Payment

This department is performing following functions
Collection of utility bills Collection of dues of education institution Payment of salaries Payment of zakat Payment of pension
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Remittances Section
Remittances can be made through:
Instrumental transfer Electronic transfer
1) Instrumental Transfer
Instrumental transfers are following:
Demand Draft
It is an instrument, which is payable on demand and it is only presentable in the city/country. When any draft, i.e., an order to pay money, drawn by an office of bank upon another office of the same bank for a sum of money payable to order on demand, purports to be issued by or on behalf of the payee, the bank is discharged by the payment in due course. When a person requires a draft, he should be asked to complete the prescribed application form in which he should state the amount of the draft, the name of the payee, and the place of payment. The person to those persons, who have been duly authorized to act on his behalf, should sign this application form. An advice is prepared and two copies of this advice are sent to the Head Office. The bank charges 3% withholding tax and commission according to the rate list (minimum is Rs. 200).
Pay Order
It is an instrument, which is payable in demand and only presentable in city Pay order is also called the bankers cheque drawn upon the issuing bank itself. It is not negotiable and therefore, bankers tend to cross the instrument Payees account only to avoid the possibility of
dealing with instruments with forged endorsement. The pay order is issued favouring individuals, commercial concerns, government departments. On the presentation of pay order, the bank is liable to pay the amount to the customer. Bank charges excise duty of Rs. 4 and service charges of Rs. 100.
Pay Slip
It is an instrument, which is issued by bank and used for expenditure purposes, i.e., electricity bills, maintenance bills, security bills, fixture and fitting, etc
Call Deposit
Call deposit are not actual deposits of bank. It is in fact the liability of the bank. Call deposit are ofently prepaid by the bank for contractors
PROCEDURE:
Following steps are involved:
1) Depositor fill the credit vouchers for call deposit. He writes the following information
Name of company Amount Date

2) He deposits the cash along with filled voucher in the cash department
Encashment of CD
For the encashment of call deposit needed 5 rupee stamp two signature of customer on the back side of CD token issued accountant make entry in the CD register show that it has returned
a. Electronic Transfer
Electronic transfer is of following types Telegraphic Transfer

It is the message, which is sent from one branch to another on the order of payer to payee through wire. It is one of the quickest means to transfer fund through the use of telex/fax/internet or cable. Payment to the beneficiary is affected directly by the drawee office upon identification or through credit into beneficiarys bank account. As such remitting office is not required to issue any instrument payment to the remitter for delivery to the beneficiary.
Issuance and Payment of Telegraphic Transfer Outgoing

Application form is filled by the client in which the name and account number of the beneficiary, which is to be credited and name of customer is required. For telegraphic transfer, the payment can be made in case or by cheque or by debiting the customers account if he is the account holder. The amount of Telegraphic Transfer should be written on the form. The amount is transferred to beneficiarys account in the other bank. application is filled in the record of the bank. If the beneficiary is not the account holder of DBL, bank credits a Telegraphic Transfer payable account and when payment is made to the beneficiary, TT payable account is debited. An advice is given to the customer but
Issuance and Payment of Telegraphic Transfer Incoming

When a TT is received then an entry is passed in TT incoming register after verifying the test. When a person comes and wants to encash his TT, bank checks the statements of that person. If the bank finds any account credited to the persons account against TT, bank prepares a voucher for this payment against that TT. The customer then presents that certificate to the cash counter and collects money.
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Mail Transfer
It is the same like TT, but in this type, the message is sent through mail rather than telex. The procedure is same as TT, but the advice is sent through mail rather than wired.
Travellers cheques (TC)

These are also called TC. Travellers cheques first came into use century ago. Form of travel currency giving to the holder .the security of a letter of credit and convenience of a local currency. In practice, they are acceptable in payments of accounts on board ship, at hotels and in stories. They are in form of a draft. They should be so signed immediately on issue and place is provided on the cheque for the signature of the beneficiary on its
Lockers service
National bank of Pakistan also provides lockers facility in the country. The lockers issued only to the depositors. No lockers are issued to any unknown person. The dual control system is used for lockers. The officer has master key to apply on the locker but he cannot open the locker of any person. The locker holder provides the bank has specimen signature. Whenever the locker holders come to open the locker, his signatures are verified by the officer and then will be able to open his locker. If the key of the locker is lost company providing these lockers breaks the locker and new lock is fitted in its locker and lock is destroyed in the presence of the locker holder and bank charges Rs. 1200 for that. In case the locker holder dies, the court opens his locker in the presence of his heir as mentioned in his will or and his belongings are given to them and the locker is closed.
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Computer Section
Through this department bank has make its way to enter in twenty first century. This department is playing a very important role in making the banking procedures faster and helping the bank for providing new services to its customers. This division provided the bank with online branches, systems to make the whole procedure foolproof.
Types of Branches
There are three types of Branches in all over Pakistan of NBP
1. Online branches:
The branches, which are directly, link with central computer AS-400, through wide area networking through fiber optics. These branches have dumb terminal directly linked with central computer. Yet only forty-four branches all over Pakistan are online. Of these forty-four, seventeen are located in Karachi, seven in Lahore, two in Islamabad and two in Multan and two each in other regional head offices.
2. Batch Branches:
The branches where all transactions are carried out with the computer base system but these branches are not connected to the central computer with wide area net working. Batch branches are using three type of system, Branch Back Office (BBO) based on FoxPro, Branch Automated System based (BAS) on UNIX, Branch Integrated System (BIS) based on FoxPro in Karachi mostly branches are facing this problem. BAS was establish in the beginning while BBO is currently implemented now efforts are under way to convert all branches into Electronic Banking System (EBS) which is used by online branches as this system does not require a person to remain sitting till the branch closed its daily operation but the system automatically close it self when the branch timing is over. The database in head office is also based on this system.
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3. Manual Branches:
The branches where all transactions are carried out manually and records are maintained on registers usually stored in big wardrobes. All branches in Pakistan report to there regional head office regarding there daily transaction. In the RHO through On Line, terminal data goes to head office central computer; Except for branches those are On Line as they transfer there daily data directly through there own terminal. As day-to-day, activities of all branches are recorded in a central computer.
Evening Data Receiving Center

Data form batch branches reach the main branch in floppy diskettes while form manual branches it is in form of hard copy. Data comprises of transactions in profit loss account, current account, advances etc termed as Daily Transaction Report. Clerk in charge register all diskettes and manual in registers called job booking register one for each of two type of data. These floppies and manual are bring in by riders. There are fourteen riders in total who bring information form all branches located in Karachi region.
Data Entry Department

The next task after receiving the data is to enter that data in to a computer. The floppy disk is directly inserted in the computer. The program in used is based on COBOL language. This program is designed in away that it demand Hash Value value before opening the floppy for further action this value serve the purpose of password or pin code send by the branch on entering that value the data enter in to the computer. This computer is attached with the terminal of central computer. The operator of that terminal takes the data from the computer and converted it in to a text file through that terminal the data finally goes to the central computer.
Defects and Error Handling:

Errors of different origin occur when the data goes to central computer. Sometime retrieving data from the system (BAS, BBO, and BIS), other than used in HO (EBS) also caused errors. Other errors
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include Unmatched (This error occurs when document no matched with the previous one exists), no master (when opening of new account is not mentioned), Date in Valid, duplicate cheques (this error occur when the last objection is not removed), these and other such error are see by the person in charge. In the end of day print out of the data enter in central computer is taken. Any Incomplete information for any branch and any information require by that particular branch is sent to that branch. More over material is used to make a WST which is sent to State Bank of Pakistan.
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CREDIT AND ADVACNECS DEPARTMENT Credit:

It may be defined as The sale of goods and services and money claims in the present in exchange for a promise to pay in future. The most important activity of the bank is the granting of credit to the customers. NBP provides short term long terms financing for domestic and international trade. The policies made by central office of the cash can be amended on the basis of the rules and regulation, economic risk of each country board of directors and committee of the NBP made this type of decisions and informed about these decisions to the branch managers. Manager can grant the credit limit to each customer with in the declared limits approved by the controlling offices i.e., co, GHQ, circle and zonal. Banks grant credit to the customer for a certain period of time. The banks provided credit to the customers so that they can purchase ahead of their liability. By giving these facility to the customers large scale production of commodity can be achieved and economic growth rate can be increased. The power to sanctioned loans had been delegated for controlling different offices, according to amount of loan. This department is also called as risk management group.
The following elements are used for credit selection:

Character
It is based on the borrower willingness to repay the obligation. The loan officer sees the family background mode of living, business nature, habits, moral reputation and etc. before giving the loan.
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Capacity
The ability of borrower to repay the loan when due. The borrower ability to repay the loan is assessed by the office so that he will be able to repay the loan in future.
Capital
The officer assesses the capital of the borrower. If assets held by the borrower are liquid, they can be easily convertible in cash; but if non liquid is used then it is risky to given loan.
Collateral
It is collateral security. It may consists of stocks bonds , bill of exchange, bills of lading, etc. the bank has protect him self from any discrepancy in the future. They increase the ability of the borrower to obtain the funds from the bank.
Condition
The economic condition of the borrower is determined. The economic conditions of the borrower in and out side the country effects the repayment of loan. If condition is favorable then loan is given otherwise vice versa.
Functions
Credit department has performed following functions.
Advances
Advances provided by the bank are of the following two types. Funded Non-funded
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Funded
In fund based bank contributes a large amount of the fund based on clarified as follows:
TYPES OF ADVANCES
Demand Finance
One time disbursement of the whole amount sanctioned, as the limit for the credit allows. Any person, individual, group, company, firm and all others can achieve this mode of financing. The markup or interest is calculated on the total amount disbursed and requires to be paid before the date of final adjustment. Regarding the amount, limit and period, it depends on the nature of the case in review.
Cash Finance
In this mode of financing the borrower is allowed to make withdrawals of funds as he requires, but the total amount outstanding cannot exceed the limit sanctioned. The mark-up/interest is calculated on the amount outstanding on his account. The calculation of mark-up/interest is based on the number of days a specific amount is withdrawn. This finance if normally borrowed by small traders or individuals for their petty matters involving cash transactions up to rupees three hundred thousand maximum.
Running Finance
To assist a large-scale business operator to carry on his day to day requirements of liquid funds, this account is opened is made operation in his favor. Running finance is provided where the amount goes beyond rupees three hundred thousand. The mark-up/interest is calculated the same way as in case of cash finance. Security against running finance is that which is easily convertible in to cash and bank kept 25% margins with it.
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Non-Fund
Bank provide non fund advance in the following form:
Guarantee Imports
Guarantee
A guarantee is a promise between one person to another person or party to answerable for the debt of a third party. Bank issues guarantee after 100%cash collaterals are provided by the person i.e.50% in the form of the property.
Imports
Bank provides non-funded credit facility to the following basis.

Sight LC Usance or DA LC.
Sight LC
In this type of L.C when payment is made documents are released. A cash margin of 30% is relational by the bank.
Usance or DA L.C
The bank retains the payment after a period of days, which is given in the L.C margin of 30%.
TYPES OF LOANS
The credit department of NBP has providing the following types of loans:
1. Short term loans 2. Long term loans 3. Working capital loan
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4. Syndicate (project) loan 5. Monitoring
Documentation in short term financing

Demand promissory note Mark up agreement Letter of guarantee in personal capacity Letter of authority Letter of pledge Memorandum of deposit of title deal
Status reports
A credit report is an assessment of borrowers character and capacity from a bankers point of view. Credit reports on borrowers called Status Reports, financial reports, bankers opinion or confidential reports. All these terms carry more or less the same meanings. The study of a borrower is a study of his character, capacity and capital, and collateral often known as the 4Cs to consider his credit worthiness and eligibility for the bank advance. The purpose of compilation of credit report of the borrower is to assess their net worth. It must contain information about borrowers means, character, integrity, assets, liabilities, business and experience. Besides, borrowers own investment, details of properties, must be obtained. The borrower may be asked to give written clarification of their existing liabilities. In the case of Limited Companies, their borrowing powers to be verified from their Memorandum & Articles of Association. Their certification of incorporation to be examined, exiting borrowings, prior charge on their fixed assets, paid-up capital, reserves, profit and loss position, detailed particulars of their directors and complete analysis of balance sheet must be incorporated in the credit report. Independent inquiries about the borrowers and opinions form their previous bankers must be
made. As such a comprehensive credit report is compiled which serves as a constant guide to the banker about his borrower. This report is prepared by the bank of the intending borrower with a view to considering his Credit Worthiness and Eligibility for the Bank Finance. Besides other things it contains the net worth of the borrower.
Net worth of borrower Individuals

Net of the individuals worth is the total investment or equity of the sponsors/borrowers in the company through which they are asking for credit and in the other sister concerns.
Firms
Total investment in Business + Properties liabilities Paid-up-capital + Reserves + Profits (Losses)
The Investigation process

1. Knowing the market place 2. Risks inherent in lending Management risk Market risk Earnings fluctuations risk Default risk Marketability risk
Criteria checked for loans

Major areas requiring focused attention of the analyst are:
1. Financial
Condition
This is reflected in the trends of: Net sales Gross sales Operating profits Net profits (at least for the last 3 years)
2.
Structural Liquidity
It refers to the extent of liquidity usually available in the business, or which is the routine requirement of the borrower based on the nature of his periodically maturing liabilities.
3. Industry/Business of Operation
The banker has to check that in which industry or segment of market the loan is being given this is important because if there were a recession in that industry for decades then it would not be feasible to invest in such a business. Certain traditionally stable industries are in Pakistan in which NBP feels satisfied while investing. For example in they feel satisfied by investing in ICI.
4. Debt Equity Management

Excessive reliance on debt, rather than plough back of profits or injection of fresh equity, to maintain a healthy combination of debt and equity is thought with danger because ultimately the debt servicing requirements place a heavy burden on its liquidity thereby its survival.
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5. Asset Management
Asset management involves the analysis of how productively the assets of the company are being used. Sales and profitability can be measured with this.
6. Borrowers Credit Worthiness

In order to get a complete picture of the borrowers credit worthiness, inquiries will have to be made about: His business. Trade experience. Assets and liabilities. His account with bank or with other banks. His financial statements and income tax returns. An interview with him will be necessary to elucidate or supplement the information that may have been collected.
7. Management
Before giving loan NBP also checks whether the management have the depth, skill and experience. If the management is aggressive and adoptive to the new changes then it is most likely that the banker may receive the loan back on due date
8. Securities
In case the borrower is not in a position to meet his obligations, there must be something else to call back upon. So bankers take securities to have a resource to them to guard liquidity, that is, security is an insurance against calamities. In case of cash finance the customer have to give the same amount of money to the NBP as a security for which it takes loan.
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Condition for security

The security must be liquid or radically convertible to cash with more then adequate margin of safety fully under the banks control, having high value, which can with stand volatile market condition. Secured by acceptable immovable tangible collateral with necessary margin and fair degree of marketability under the forced sale situation (should have buyer). The types of securities may vary from a piece of land or building to commercial papers or ornaments. Further, security has its own importance, not only as constituting the ultimate source of recovery in the event of failure of the borrower or his enterprise, but as providing a measure to the borrowers own stake in the enterprise and also placing the limitation on his future borrowings. However, though security serves as a cushion to fall bank upon in case of need, but its adequacy alone should not form the sole consideration for judging the suitability of the loan. So the choice of security is not made in isolation, but keeping into consideration the customer and security offered together.
Guarantees
A grantee is defined as An undertaking by a person to responsible for the debt of another person. National bank of Pakistan issues guarantees to government agencies like atomic energy, high way department, and customs. Sui northern gas and others. It also issues guarantee to multinational organization like Sandoz, PBS, etc. for the purchase of pesticide or insecticide from any fertilizer company. Bank accepts only long other bank guarantee but in some cases personnel guarantee is also accepted. The guarantee issued is treated as contingent liability. According to local rules and regulation the policy for issuance of guarantee can be changed. The expiry of the guarantee can be set by both bank and guarantor. The minimum period is one year and the guarantee can be reissue for extra period with paying charges. The two officers whose signatures appears in the specimen signature book of bank and also counter sign by the zonal chief must sign each guarantee. Both officers must also sign any amendment. Am amendment in the guarantee can be made after giving written application to issuing
branch. If the value of the guarantee is reduced by the amendment the liability amount will be reduced and if will value is increased additional liability entries will be passed. The bank provides following types of guarantees to the customers. Bid bond Mobilization bond Performance bond
Bid bond
The facility provided at the time of bid opening is called bid bond.
Mobilization bond
When the bid is accepted, the bank provides this type of facility to the customer.
Performance bond
When the project is completed, the contractor about the performance of the project provides a performance certificate for one year. During one year, if there is any mishap in the project the repair otherwise authorities claim the performance charges from the bank.
Bank charges commission on issuance of guarantee as per their schedule of charges. If the party did not pay the amount in the stipulated time period, bank puts this case for recovery. If some amount is recovering then it is good otherwise bank deduct the amount from its profit and starts the legal procedure against the property pledged by the customer to bank. Bank assesses the demand of the customer and then writes letters to other banks to provide them confidential report of credibility about the customer this is one provided in the shape of CIB (credit information bureau) report provided by the SBP. In this report the credits of the customers with the bank operating in Pakistan are given. After checking this report the bank issues the guarantee to the customer. In case of death of his heir as given in the will be responsible for that guarantee.
Security
It is an interest or right in the property gives to the creditor to convert it in cash in case of debtor fails to meet the principal and interest. The bank provides the following securities to the customers.
Mortgage
Transfer of interest in movable property for securing the payment of money lend on existing or future liability. The bank provides the following two types of mortgage.
Registered mortgage Equitable mortgage Registered mortgage

Registered mortgage is provided on the residential property, commercial industrial property, raw plot, etc. A party can get registered mortgage if they provide the following documents to the bank.
Title deed Non encumbrance (NEC) pit form (in case a constructed hose) Valuation certificate Affidavit Mortgage deed Personnel guarantee of mortgagor Power of attorney Legal opinion
Banks examine all these reports, and if they are correct then issue the mortgage to the party. The bank examines these reports to see that the property they want to mortgage is registered and is not already pledged. The bank also calculates the value of the property and the legal opinion of the customer in case of non-payment.
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Equitable mortgage
Equitable mortgage is provided on the residential property, commercial industrial property, raw plot, etc. Title deed Non encumbrance certificate (nec) Pti form (in case a constructed house) Valuation certificate Affidavit Memorandum of deposit of title deed Personal guarantee of mortgagor Power of attorney Legal opinion In this mortgage a charge form bound the customer for any legal action in case of non-payment. In this type of mortgage hypothecation of stocks involves.
Pledge
A pledge is an a class security given to customers for stocks ware house, customs, and etc. it is defined as actual delivery of movable property to lender as security for a loan. When the customer makes the payment of the loan in full he can back his mortgage property from the bank i.e. when full payment is made the stock is released.
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Procedure of sanction of loan

In Credit department 1st step is to preparation of credit line proposal for the preparation of credit report. For this following information required by the bank from the party Purpose of loan Details of all firms or companies associated with business Name of proprietor/ partner/directors Accurate and up-to-date balance sheet and profit and loss statement of last two years of business Market report of the borrower repute Report from the bank if borrower has maintain his account with the bank CIB report Full details of existing limit and actual liability against the business Particular about the foreign exchange deposits and bills given by the borrower to the bank Memorandum and article of association in case of limited company Audited report of balance sheet and income statement of last two years After checking all the securities, customer verification the manager done the following tasks:
1. Preparation of credit proposal 2. Prepare the about the customer 3. Sanction of loan
1. Preparation of credit proposal

After formal application for the credit the party submits approval. For this purpose borrower can use coarse paper or the form provided by the bank. Along with the application borrower also submits the documents required by the bank. The bank manager evaluates the documents provided by the borrower. He gets the partys credibility report confidentially from the other commercial banks. He checks the balance sheet and income against the
assets in the company. He also measures the percentage of owners equity. Then he doses the ratios analysis of the company. If the party is involved in the export and import business then the data of the last three years of this business is considered. The manager of the bank also examine the project violability, the securities provided by the debtor to the bank are evaluated by measuring their worth. In the case of pledge is assessed by the manager while in case of new party manger checks from where the party is financing for their business
2) Prepare the Proposal about the customer

After preparing the proposal manger prepare the report about the customer. Report contains the following information Name of the company Date of establishment Address Nature of business Branch office Worth of business Date Bankers opinion Head cashier opinion Branch manger opinion In case of partnership businesses following information are included in the report: Partner, their share in capital, profit and loss Deed of partnership Partnership letter Turn over Net profit Personal property of partners
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Bank balance of partners Advance payment of suppliers Particular of machinery installed in the factory through financing In case of corporation/limited companies the following information are included: Incorporation and commencement of company Sales offices Capital information Directors and their contribution to capital Balance sheet with explanation and evaluation Net worth of the company
3) Sanction of loan
If the limit of the loan lies with in the power of manger then he sanction the loan otherwise manger with the covering letter along with all necessary documents sends it to the concerned sanctioning authority.
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COMPREHENSIVE STRATEGY FORMULATION FRAMEWORK

Important Strategy-formulation techniques can be integrated into a three stage decision-making framework.
Input Stage
Matching stage Decision Stage
The tools presented in this framework are applicable to all sizes and types of organizations and can help strategists identify, evaluate and select strategies. Strategists never consider all feasible alternatives that could benefit the firm because there are infinite number of possible actions and an infinite number of ways to implement those actions. Therefore, a manageable set of the most attractive alternative strategies must be developed with the help of this three stage framework.
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STAGE: 1
INPUT STAGE
This stage summarizes the basic input information needed to formulate strategies. It consists of three matrices which is shown by the diagram:
INPUT STAGE
External Factor Evaluation Matrix (EFE)
Comprehensive Profile Matrix (CPM)
Internal Factor Evaluation Matrix (IFE)
STAGE: 2
Matching Stage
This stage focuses upon generating feasible alternative Strategies by Aligning key external and internal factors.
Matching Stage
SWOT
Strategic position and Action Evaluation Matrix (SPACE)
Boston Consulting Group Matrix (BCG)
InternalExternal Matrix
Grand Strategy Matrix
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STAGE: 3
Decision Stage
This stage involves the single technique, the Quantitative Strategic Planning Matrix (QSPM). A QSPM uses input information from Stage 1 to objectively evaluate feasible alternative strategies identified in Stage 2. A QSPM reveals the relative attractiveness of alternative strategies and thus provide objective basis for selecting specific strategies.
Decision Stage
Quatitative Strategic Planning Matrix(QSPM)

All nine techniques included in the strategy Formulation framework require the integration of intuition and analysis. Autonomous divisions in an organization commonly use strategy formulation techniques to develop strategies and objectives. Here are given all the matrices of National Bank of Pakistan.
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INPUT STAGE
INTERNAL FACTOR EVALUATION MATRIX
Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation.
NBP IFE MATRIX

Sr. No KEY INTERNAL FACTORS
INTERNAL STRENGTHS 1 2 3 4 5 6 7 8 9 10 11 12
WEIGHT
RATING
WEIGHTED SCORE .36 .18 .27 .21 .20 .36 .22 .09 .10 .08 .20 .22 2.49
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Strong financial position Growth and expansion Specialized training for employees Extensive domestic and overseas branch network Wide range of products and services Customer loyalty and trust
INTERNAL WEAKNESSES
.09 .06 .09 .07 .10 .09 .11 .09 .05 .04 .10 .11 1
4 3 3 3 2 4 2 1 2 2 2 2
Limited no. of employees Lack of standardized performance evaluation and hiring system Political pressures because of being a public sector bank Limited support for innovation and creativity Weak customer service Limited technological advancement TOTAL
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ANALYSIS of IFE Matrix of NBP :
This assessment of Internal Factors indicates that National Bank of Pakistan (NBP) is about average in using its internal strengths to off set their weaknesses. NBP is having some success in controlling their internal operations relative to responding to their weaknesses. However, they should not be satisfied with being average in this highly competitive business environment. The goal is to establish a competitive advantage over other firms, and they have plenty of room for improvement. NBP needs to identify ways to improve their operations to gain this competitive advantage. Again, the IFE assessment is not an exact science and the exercising of good judgment is essential. It appears from the IFE analysis that NBP should try to improve their ability to respond to the internal environment. However, NBP should strive to be effective in both the external and internal environments. These tools are only one of much analysis to be conducted to identify an appropriate course of action. This analysis is a starting place rather than end. This is to be the fact finding stage, the Input stage, which will lead to the development of alternative strategies, the Matching stage.
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EXTERNAL FACTOR EVALUATION MATRIX

External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing. External factors assessed in the EFE matrix are the ones that are subjected to the will of social, economic, political, legal, and other external forces.
NBP EFE Matrix

Sr. No
1
KEY EXTERNAL FACTORS

OPPURTUNITIES
WEIGHT RATING
WEIGHTED SCORE .28
Growth opportunities for banking industry. Technological advancements like on-line banking, ATMs, Mobile phone banking facilities Innovative products like credit cards, debit cards, smart cards, various types of loans and advances.
THREATS 1
.14
.20
.60
.18
.54
Increased competition from numerous private commercial banks. Economic recession. Wide range of versatile products and services from competitors. TOTAL
.20
.40
2 3
.13 .15
2 2
.26 .30
2.38
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ANALYSIS of EFE Matrix of NBP :
This assessment of the External Factors reveals that National Bank of Pakistan is below the industry average in responding to the external environment. They should begin to prepare a strategy to better defend the firm against external threats present in the business environment and try to identify ways to take advantage of opportunities because there is large competition in banking sectors due to entrants of many Private banks. However, EFE is basically a tool for strategists to use to help develop an appropriate course of action. It appears from the EFE and IFE analysis that NBP should try to improve their ability to respond to the external environment. However, NBP should strive to be effective in both the external and internal environments. These tools are only one of many analyses to be conducted to identify an appropriate course of action. This analysis is a starting place rather than end. This is to be the fact finding stage, the Input stage that will lead to the development of alternative strategies, the Matching stage. To make this EFE and IFE a more valuable assessment, it needs to be brought to the next stage, the TOWS analysis.
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Competitive Profile Matrix

NBP Critical Success Factors Advertising Weight Rating Score Rating Score Rating Score 0.10 2 4 4 2 3 2 3 3 4 4 3 4 3 0.20 0.12 0.32 0.24 0.18 0.18 0.24 0.24 0.32 0.20 0.24 0.4 0.15 3.03 2 3 1 2 2 2 1 3 2 3 3 3 2 0.20 0.09 0.08 0.24 0.12 0.18 0.08 0.24 0.16 0.15 0.24 0.3 0.10 2.18 3 2 4 3 2 3 3 4 3 3 2 4 3 0.30 0.06 0.32 0.36 0.12 0.27 0.24 0.32 0.24 0.15 0.16 0.40 0.15 3.09
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HABIB BANK
BANK ALFALAH
Customer Loyalty 0.03 Customer Service 0.08 E-commerce 0.12
Financial Position 0.06 Global Expansion 0.09 Inventory System 0.08 Management Experience Market Share Organizational structure Price Competitiveness Product Quality Production capacity TOTAL
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0.08 0.08 0.05 0.08 0.10 0.05 1.00
ANALYSIS of CPM of NBP:

Above in the Competitive Profile Matrix are the thirteen key success factors for National Bank of Pakistan. NBPs two major competitors in the market share, customer loyalty and industrial growth industries are Habib Bank Limited (HBL) and Bank Alfalah (BAL). National bank of Pakistan is often seen as the highest loyalty from customers and also involves less terms and conditions as it is the public sector bank. It has a greatest support of Government. Habib Bank limited is viewed as recognized brand names and have strong and old roots in Pakistan. Bank Alfalah is a private sector bank and is known in the industry as being the largest supplier of a variety of quality services to their customers, best known for its excellent customer services. Based on the data contained in the CPM below Bank Alfalah is the most competitive followed by NBP and then by Habib bank Ltd. It is important to note that NBP and Bank Alfalah are currently in very close competition and while NBP has been the bank industry leader in Pakistan though Alfalah is more operative internationally. NBP has to focus on advertisement sector and Ecommerce to be competitive and leader in banking industry because Alfalahs both sectors are running successfully but BAL prices are more than NBP. Overall Bank Alfalah competitiveness is more than NBP and Habib Bank Ltd.
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MATCHING STAGE
1) Strengths, Weaknesses, Opportunities, Threats (SWOT)
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2) STRATEGIC POSITION AND ACTION EVALUATION MATRIX (SPACE)

The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake. The Strategic Position & Action Evaluation matrix or short a SPACE matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization. The SPACE matrix is broken down to four quadrants where each quadrant suggests a different type or a nature of a strategy: Aggressive Conservative Defensive Competitive
The SPACE Matrix analysis functions upon two internal and two external strategic dimensions in order to determine the organization's strategic posture in the industry. The SPACE matrix is based on four areas of analysis. Internal strategic dimensions: Financial strength (FS) Competitive advantage (CA) External strategic dimensions: Environmental stability (ES) Industry strength (IS)
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SPACE matrix of National Bank of Pakistan (NBP)

The following table shows what values were used to create the SPACE matrix displayed below:
INTERNAL STRATEGIC POSITION Competitive Advantage (CA) ( -6 worst , -1 best )
EXTERNAL STARTEGIC POSITION Industry Strength (IS) ( +1 worst , +6 best )
Product Quality
-1 -1 -3 -2
Barrier to entry Growth Potential Consolidation

Average +4.75
+6 +4 +5
X- axis
Market Share Brand & Image Product Lifecycle

Average -1.75
Access to Financing +4
Total X-axis score: 3.00 Financial Strength (FS) Environmental Stability (ES) ( +1 worst , +6 best ) ( -6 worst , -1 best )
ROA
+5 +4 +6 +5
Inflation Technology Demand Elasticity Taxation

Average -2.25
-2 -1 -2 -4
Y- axis
Leverage Liquidity Cash Flow

Average +5.00
Total Y-axis score: 2.75
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The graphical representation of SPACE matrix is presented below:
ANALYSIS:
This particular SPACE matrix tells us that the organization (bank) should pursue an aggressive strategy. The Bank has a strong competitive position in the market with rapid growth. It is in excellent position to use its internal strengths to Take advantage of external opportunities Overcome internal weaknesses Avoid external threats
Recommended Strategies:
Therefore market penetration and market development, this can include product development, integration with other companies, acquisition of competitors, and diversification can also be feasible for the bank.
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BOSTON CONSULTING GROUP (BCG) MATRIX

The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor.
Four Categories of BCG Matrix Model: STARS (high growth, high market share)
- Stars are defined by having high market share in a growing market. - Stars are the leaders in the business but still need a lot of support for promotion a placement. - If market share is kept, Stars are likely to grow into cash cows.
QUESTION MARKS (high growth, low market share)

- These products are in growing markets but have low market share. - Question marks are essentially new products where buyers have yet to discover them. - The marketing strategy is to get markets to adopt these products. - Question marks have high demands and low returns due to low market share. - These products need to increase their market share quickly or they become dogs. - The best way to handle Question marks is to either invest heavily in them to gain market share or to sell them.
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BCG CASH COWS (low growth, high market share)

- Cash cows are in a position of high market share in a mature market. - If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. - Because of the low growth, promotion and placement investments are low. - Investments into supporting infrastructure can improve efficiency and increase cash flow more. - Cash cows are the products that businesses strive for.
BCG DOGS (low growth, low market share)

- Dogs are in low growth markets and have low market share. - Dogs should be avoided and minimized. - Expensive turn-around plans usually do not help. And now, let's put all this into a picture:
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BCG Matrix of National Bank of Pakistan (Rupees in 000)
Segments
Relative Industrial Sales Market Growth Revenue Share

45% 4.33% 324,911
%age Sales
Profit
%age Profit
Corporate Finance Trading & Sales Retail Banking Commercial Banking Payment & settlement Agency Services Total
0.60%
322,389
1.40%
68%
50%
14,472,033
27%
13,074,776
57%
60%
15.3%
13,114,628
25%
3,555,802
15.5%
87%
-5.8%
20,687,687
39%
5,060,790
22%
75%
63%
1,712,732
3.2%
900,957
3.9%
50%
11.3%
3,161,901
6%
83,285
0.36%
53,473,892
100%
22,997,999
100%
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GRAPHICAL PRESENTATION OF BCG MATRIX

Relative Market Share 100% 70 60 50 40 30 20
Industrial Growth
50% STARS QUESTION MARK
0%
10 0 -10 -20 -30 -40 -50 -60 -70 CASH COWS DOGS
100%
50%
0%
SIZE of the Circle shows % age Sales Highlighted portion of the circle shows the %age profit.
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ANALYSIS of BCG Matrix of NBP

As we can see from the graphical presentation of BCG matrix that almost all segments of NBP lies in Stars except one which is corporate Finance segment lies in Question mark Quadrant. Corporate Finance sector has a need of cash because there cash generation is low. For this segment the recommended strategies are: Bank must decide to strengthen it by pursuing an intensive strategy (market penetration, market development, product development).
While all other segment lies in Stars Quadrant which shows that they have high relative market share and a high industry growth rate should receive substantial investment to maintain or strengthen their dominant positions.
Recommended Strategies:
Forward, backward and horizontal integration, Market penetration, Market development and product Development are appropriate strategies for these segments to consider.
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Quantitative Strategic Planning Matrix (QSPM)

Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management approach for evaluating possible strategies. Quantitative Strategic Planning Matrix or a QSPM provides an analytical method for comparing feasible alternative actions. The QSPM method falls within so-called stage 3 of the strategy formulation analytical framework. When company executives think about what to do, and which way to go, they usually have a prioritized list of strategies. If they like one strategy over another one, they move it up on the list. This process is very much intuitive and subjective. The QSPM method introduces some numbers into this approach making it a little more "expert" technique.
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GENERAL SUGGESTIONS
NBP is an effectively operating and profit making organization and carrying out its activities under a specified system of procedure. The main regulatory body is State Bank of Pakistan, which provides policy guidelines and ensures that the money market operates on sound professional basis. While the head office specifies the whole procedure of function and operations. This procedure has been modernized with the passage of time with a view to streamline the approach and underlying procedure for effective overhauling of its own capabilities so as to bring them at par with international practices. Here I am giving some suggestions, which in my view can add some input for efficiency and better performance of NBP. The recommendations are as follows:
Professional training
NBP staff lacks professionalism. They lack the necessary training to do the job efficiently and properly. Although staff colleges in all major cities but they are not performing well. For this purpose these staff colleges should be reorganized and their syllabus should be made in such a way to help the employee understand the ever changing global economic scenario. Banking council of Pakistan should also initiate some programs to equip the staff with much needed professional training.
Delegation of authority
Employees of the bank should be given a task and authority and they should be asked for their responsibility.
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Performance Appraisal
The manager should strictly monitor the performance of every staff member. All of them should be awarded according to their performance and result in the shape of bonuses to motivated and incite them to work more efficiently.
Changes in Policies
There should not be any abrupt policies change by the upper management, as this practice hurts the customer confidences in the bank. Government should make long term policies.
Need of Qualified Staff

Required, qualified staff should be provided to branch in order to improve the functioning of the branch. Especially a telephone operator should be appointed.
Utility Bill Charges

Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job despite this working resulting in a loss to then Rs 3 to5 per transaction. These charges should be increased to RS 10 per bill to enable the branch to cover their handling costs and make some profit.
Link with the Head Quarter

100 major branches of NBP should established a direct link with the, head quarter In Karachi, through Internet or Intranet. This will make the functions and decision making of the management easier and convenient.
Credit Card
National bank of Pakistan should start its operation in credit card. These cards are very helpful for the ordinary customer in general and the business people in particular. To make it mores secure and to eliminate the misuse of it, the management is required to keep proper security against the card.
Decreasing Administrative Expenses

Bank should their administrative expenses. This was Rs 8 billion in the year 2000. That can be done by lying off the surplus pool of employee with golden handshakes scheme. The branches that are not much used could also be closed. Employee can also be how to control the bank expenses. That will give positive results in the future.
Needs to be Flexible in credit Policy

As mentioned earlier, NBP is very conservative in advances and loans policy. It reduces the investment opportunities. Also loans should be given to the small businessmen and the agriculture sector at the low markup rate. It should adopt flexible credit policy while giving credit to the agriculture sector.
Technological Advancement
I would like to suggest that at least all the main branches of NBP should be fully computerized in order to expedite the dealing process among bankers and their customers. Every department should be provided a computer with adequate training (especially Advances, Deposits and Foreign Exchange departments). Daily records should be entered directly into these computers, (instead entering the overall daily transactions after the banking hours). It will not only reduce transaction time, will increase accuracy but will also be efficient as well. Not only it will be economical but will also reduce the extra burden of work of the bank. It will also help in reducing the use of excessive paper work.
Marketing Policy
The branch should adopt various marketing strategy and promotion strategy to promote the bank and its product.They should do more advertising through newspaper and media and through channel of personal contacts.
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Abbreviations and Acronyms

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. NBP NGT IBCA NIFT PO DD PS L/C CIB A/C USD GBP TT FTT HO FDD ETCA ETDA SBP NY FCAFBC National Bank of Pakistan New Garden Town Branch Inter Branch Credit Advice National Institutional Facilitation Technologies Pay Order Demand Draft Payment Slip Letter of Credit Credit Information Bureau Account United States Dollar Great Britain Pound Telegraphic Transfer Foreign Telegraphic Transfer Head Office Foreign Demand Draft Exchange Transaction Credit Advice Exchange Transaction Debit Advice State Bank of Pakistan New York Foreign Currency Account-Foreign Bills for Collection
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22. 23. 24. 25. 26. 27. 28.
IFE EFE CPM SWOT SPACE BCG QSPM
Internal Factor Evaluation External Factor Evaluation Competitive Profile Matrix Strengths, Weaknesses, Opportunities, Threats Strategic Position and Action Evaluation Matrix Boston Consulting Group Quantitative Strategic Planning Matrix
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NATIONAL BANK OF PAKISTAN

History of Banking in Pakistan-----------------------------------------------------------------------------------------------------13 Efforts towards Islamic Banking--------------------------------------------------------------------------------------------------15

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

Community development banks:

NATIONAL BANK OF PAKISTAN

Postal saving banks:

NATIONAL BANK OF PAKISTAN

Other Types of Banks: Islamic banks:

NATIONAL BANK OF PAKISTAN

bank, credit union or building society's secure website.

remotely linking into a banking network.

NATIONAL BANK OF PAKISTAN

Banks in the economy

Size of global banking industry

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

HISTORY OF BANKING IN PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

EFFORTS TOWARDS ISLAMIC BANKING IN PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

CURRENT POSITION OF NBP:

Current Price (6/30/2009):

NATIONAL BANK OF PAKISTAN

Golden History of National Bank of Pakistan

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

(Profit Oriented 1946-1973)

(Socio-Economic Development 1974-1991)

(Islamic Revolution 1977-2004)

(Free Market economy 1991-2004)

NATIONAL BANK OF PAKISTAN

PRESENT STATUS OF NBP

NATIONAL BANK OF PAKISTAN

AWARDS AND ACHIEVEMENTS:

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

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Objective of Credit Rating:

CREDIT RATING OF NBP

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

AGENT OF STATE BANK OF PAKISTAN:

MORE DEPOSITS THAN OTHER BANKS:

NATIONAL BANK OF PAKISTAN

INVESTING IN CAPITAL MARKET:

NATIONAL BANK OF PAKISTAN

NBP UNDER POLITICAL PRESSURE:

NATIONAL BANK OF PAKISTAN

LACK OF COMPUTERIZED NETWORK:

LACK OF MODERN EQUIPMENT:

UNEVEN WORK DISTRIBUTION:

LACK OF COMMUNICATION BETWEEN EMPLOYEES: