Documente Academic
Documente Profesional
Documente Cultură
Purpose of Internship
Importance of study
Banks play a central and very important role in the economic life of a
country, that’s why they are considered as the lifeblood of modern economy.
Today no one can deny the importance of banking in the economy. They
facilitate and expedite trade and commerce and provide a variety of services
that one can’t imagine with out banks.
Research methodology
There are basically two main types of methods that can be used by the
researcher or observer. Both of these methods have their own implications
and merits and demerits. The selection of the methods can depend on the
specification and circumstances. At some circumstances the primary methods
are applicable, on other hand secondary methods are more suitable. This
selection of methods among two option also largely base of the cost allocated
to the research and also the time available for the research.
The methodology that I adopted for this research project is based on
both the primary as well as secondary data. The reason behind the selection
of both primary and secondary method is that in banks the overall data about
all branches of a bank are in fact impossible for an individual to collect. And
on other hand the data about the departments of National Bank of Pakistan
should be collected by the observer.
4
During the research project, I observed that enough written material regarding
the Bank is not available, so I had count on my personal observation and
interviews with directors.
I spent lot of time in the branch at each department and collected information
from discussion and interviews with Managers Officers, so most of the data of
this report is primary source .I also availed assistance from few relevant
books
Everyone knows about the term bank and they know that what the bank
means. It is generally perceived that the bank is a place where one can
5
deposit their money and from where one can borrow the funds for his or her
personal use.
It has not so far been decided as to how the word ‘Bank’ originated.
Some authors have got the opinion that this word is derived from the words
‘Bancus’ or ‘Banque’, which mean a bench. Other authorities hold the opinion
that the word ‘Bank’ is derived from the German word ‘Back’, which means
‘joint stock fund’. It is therefore, not possible to decide as to which of the
opinion is correct, for no record is available to ascertain the validity of any of
the opinions.
Banking in fact is primitive as human society, for ever since man came
to realize the importance of money as a medium of exchange; the necessity
of a controlling or regulating agency or institution was naturally felt. Perhaps
it was the Babylonians who developed banking system as early as 2000 BC.
It is evident that the temples of Babylon were used as ‘Banks’ because of the
prevalent respect and confidence in the clergy.
30th September 1948, so that problems of time and demand liability, coinage
currencies, exchange etc. are settled between India and Pakistan. The non-
Muslims started transferring their funds and accounts to India. By the end of
June 1948 the number of officers of scheduled banks in Pakistan declined
from 631 to 225. There were 19 foreign banks with the status of small branch
offices that were engaged solely in export of crop from Pakistan, while there
were only two Pakistani institutions, Habib Bank Pakistan and the Australian
Bank. The customers of the bank are not satisfied with the uncertain condition
of banking. Similarly the Reserve Bank of India was not in the favor of Govt.
of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central
bank. Consequently the Governor-general of Pakistan Quaid-I-Azam
inaugurated the State Bank of Pakistan on 1st July 1948. Thus a landmark
was made in the history of banking when the state bank of Pakistan assumed
full control of banking and currency in Pakistan.
“Government of Pakistan inaugurated the State Bank of Pakistan on
July 1,1948, after the State Bank of Pakistan order was promulgated on May
12,1948. In order to bring the situation under control “As the central bank of
the country. The state Bank of Pakistan addressed itself with the equally
urgent task of creating and developing the Baking system of the country. To
achieve this goal, it provided every help and encouragement to Habib Bank to
expand its network of branches and also recommended to Government, the
establishment of a new bank, which could serve as an agent of the State
Bank of Pakistan in areas where State Bank branches are not present. As a
result, the National Bank of Pakistan came into being in 1940 and by 1952 it
became strong enough to take over the agency functions from the Imperial
Bank of India. In order to develop sound banking and weed out weak
institutions, the Banking companies (control) Act was promulgated in 1949,
7
Commercial Banks
8
Creating Money
Commercial banks have the ability to create and to utilize the money.
This is accomplished by lending and investing activities of commercial banks
in cooperation with central bank. The power of commercial banking system to
create money is of great economic significance. It results in the elastic credit
system that is necessary for economic progress of relatively steady rate of
growth. If bank credits were not available, the expansion of our productive
facilities would have been severely limited. Under such conditions, productive
units would have been forced to maintain large working balances to meet
fluctuating requirements for fund. Such a practice would be uneconomical
since large sums would have to be held idle for some period. While during the
seasonal peaks of business activities such sums might be insufficient. We
need an adequate but not excessive money supply in our economy.
Payment Mechanism
Providing for payment mechanism or the transfer of funds is one of the
important functions performed by commercial banks and it is increasingly
important as greater reliance is placed on the use of checks and credit cards.
The increasing deficiency with which funds are managed is indicated by the
gradual decline in money holding relative to the GNP (Gross National
Production) over the year.
Pooling Of Savings
Commercial banks perform a very important service to all sectors of
economy by providing facilities for pooling of savings and making them
available for economically and socially desirable purposes. The saver is
rewarded by the payment of interest on his saving which are safe and in a
highly liquid form. These pooled funds are made available to businessmen
who may use them for the expansion of their productive capacity and
consumers for such items as housing and consumer goods.
Extension of Credit
The primary function of commercial banks is the extension of credits to
worthy borrowers. From the beginning, organizers of banks have been
motivated by the opportunities presented by lending function and charters
have been granted by the governments primarily because there was a need
for credit in a particular community. In making credit available, commercial
banks are rendering a great social service through their actions, production is
increased, capital investments are expanded and higher standard of living is
realized.
12
Bank loans enable the farmers to purchase seeds, fertilizers and many
other items necessary for agriculture and enable the manufacturer to
purchase raw material and machinery, facilitates the employment of labor and
production of goods demanded by the industry, government and consumers.
purchasers can go to commercial banks and quickly and efficiently make the
arrangement for foreign exchange needs.
Utilization of Resources
In the competitive era, it is difficult to imagine that in the absence of
banks people can make possible their savings and then their investments in
different businesses. It is through the agency of banks that people can make
savings and then these savings automatically flow into the channels, which
are productive, both for saver and investor. The banks deposit the people’s
money, which ensures the economic development by mobilizing the financial
resources of the community and making them possible to flow in desired
channels.
Capital Formation
Capital formation is one of the major factors in economic development.
It is the increase in the stock of both material and humane capital. Capital
14
• Voluntary savings.
• Involuntary savings
• Government borrowings
South Asia has proved to be fertile land, not just for crops, but also for
intelligent and learned brains. People of this area have God gifted ability of
mathematics and calculations. The Indian society was quite familiar with the
banking right from the beginning. Informal banking practices and banks
existed in one form or the other.
The English, brought with them much developed and organized banking
methods and practices. Being home to nearly one third of world’s population,
this region has always been the center of attention of world’s economic
powers. The sense of competition between the local and international banks
has proved to be fruitful in the development of the banking sector thus
contributing towards the growth of the region’s economy.
At the time of independence, the areas which now constitute Pakistan were
producing raw material in the form of food grains and different other
agricultural products. There was practically no industry setup in Pakistan.
However, the commercial banking facilities were well established. As a
country without enough resources it was very difficult for Pakistan to run its
own banking system but the father of the nation, Muhammad Ali Jinnah took
the bold step to establish the State Bank of Pakistan in July, 1948.
16
Saving Mobilization
17
Assisting in Development
18
The solidity of the world banking system depends on the solidity and
stability of national economies. Economic growth will naturally have a positive
influence on the performance of banking system. Conversely, recession and
inflation would affect this performance negatively.
The bank maintained its position as the largest bank deposit holder in
Pakistan. The integration of corporate and investment banking efforts in
enabling the bank to offer wider products range besides making it a major
player in debt and equity market. The Bank has one joint venture in U.K. and
one wholly owned subsidiary in Kazakhstan. The U.K. Operations of the Bank
were merged with that of United Bank Limited to form a Joint Venture Bank
namely Pakistan Investment Bank (PIB) incorporated in U.K. NBP has 45% of
share holding while the balance 55% is with UBL.
On the retail-banking front, the bank successfully launched a product “ghar
ghar television” which not only brought additional revenue but also served as
a launching pad for similar initiatives. NBP launched a housing scheme to
cover all sections of the society with monthly income starting from as low as
Rs.5000/- per month. Branded as ‘NBP Saibaan’ (Housing for all), the
scheme offers a maximum loan of Rs.10 million in accordance with the debt
burden criterion. Loans are available for Home Construction, Home Purchase
and Home Improvement. For Home Improvement Loans the maximum
amount is Rs.2.00 Million.
NBP further consolidated its market position in the consumer financing and its
product “NBP-Advance Salary” has been availed by approximately 475,000
customers. Overall loan growth was also impressive as net advances
23
The National Bank has set a growth rate of eight per cent in its deposit base
during 2004, especially targeting deposits from the private sector. Recent
surge in domestic interest rates poses no threat to the national economy.
Blue chip companies are still getting loans at competitive interest rates on the
basis of their stable balance sheets.
NBP is the most profitable bank in the history of Pakistan, with a record high
before Tax profit of over Rs.9.00 Billion. It is already the best bank in Asia and
the 8th Best in the world in terns of return on capital in 2002 and declared as
one of the top Banks in emerging market - 2003, by global finance USA as
well as Bank of the year in 2001 and 2002 by the Banker Magazine UK. In its
issue of March 2004, “Global Finance” has also declared NBP as “The Best
Foreign Exchange Bank” in Pakistan. With the technology of modern cash
flow based lending now in place, NBP will remain a strong force in the
national development. In short, NBP is the ‘Nation’s Bank’ with an
international recognition and acclaim, working towards national development
and raising the overall standard of the people of Pakistan.
The year 2003 saw National Bank post the highest ever profit for Pakistan’s
financial sector. This can be attributed to the successful strategic and
operational repositioning of the bank by management confronted with the dual
challenges of appreciably lower spreads and intense competition.
I believe that despite competitive interest rates, slim margins and standard
retail banking, NBP is expected to be a major beneficiary of our economic
revival due to its low cost deposit base and branch network. At the end of the
financial year 2003 NBP realized a pre-tax profit of Rs. 9 billion, a Rs. 3 Billion
increase and a 50% growth over 2002. What is more encouraging is that the
boost to profitability was on account of the higher net asset margin achieved
from rebalancing of the bank’s earning asset mix. This was evident from a 2%
pretax return on assets, a 40% improvement over last year whereas the pre-
tax return on equity at 55% placed NBP in the top tier of Pakistan’s listed
corporate and financial institutions. Earning per share has consequently
almost doubled from Rs. 5.49 in 2002 to Rs. 10.23, the highest in the banking
sector.
25
Vision
Mission of NBP
NBP will aspire to the values that make NBP truly the
nation’s bank by;
To be recognized in the market place by
• Institutionalizing a merit & performance culture
• Creating a distinctive brand identity by providing the highest standard
of services.
26
• Advancing loans
• Accept deposits
• Remitting of funds
• Sale of promissory notes
• Selling and realizing property of bank claims
• Investment or underwriting of stocks
27
In every organization there are different grading for there employees. This
grading is made in order to set the pay program as well as the level of
responsibility that should be assigned to the person on that grade. The
meaning of the word “grade” is “a certain degree in rank, merit”, “class of
person or the group of same type”. So the grading is an important activity of
an organization. Generally the government has its own grading system but
the private organization may have there own grading system. Bank also has
its own grading system that is applicable in every bank. The grading is as
under according to their hierarchy
• President. (President)
• Senior Executive Vice President (SEVP)
• Executive Vice President (EVP)
• Senior Vice President (SVP)
• Assistant Vice President (AVP)
• Officer Grade I (OG I)
• Officer Grade II (OG II)
• Officer Grade III (OG III)
• Senior Assistant
• Assistant.
29
Organizational Chart
Executive Vice-President
Senior Vice-President
Vice-President
Assistant Vice-President
Officer Grade 1
Officer Grade 2
Branch Hierarchy
Officer Grade 3
Senior Assistant
Assistant
30
In this context the National Bank of Pakistan is not so active, they are
the lowest scorer in responding the changing banking environment. The
branches of National Bank are not online with each other. The management
of National Bank realize that this can turn into weakness so due to this
awareness they have designed their own electronic banking system. These
electronic banking systems had improved the efficiency of the employees and
also increase their accuracy as well. Though they still don’t rely on this
banking system in a way that they are still maintaining there BBO system.
• 01 Financial Transactions
• 02 Non Financial Transactions
• 03 Queries
• 04 Updating of account
• 05 Reports
• 06 Foreign currency reports
The codes given with the options are used as a path to that option. For
Example if a person want to go to first option that is “Financial Transactions”
so he should enter “01” from his keyboard and after pressing enter he will see
another window opened on his screen, having an options regarding Financial
Transactions.
32
Same is the case with all other options, say if the operator want to get
modification in any of above option he can do this by simply entering the code
and pressing “Enter”. As the first option is regarding financial transactions like
Cash Receipts and Cash Payments. Suppose if a person come to a bank and
deposit a cash of 20000 so these 20000 should be entered in his account.
This 20000 is a cash receipt for National Bank so the operator shall first enter
"01” to open the list of Financial Transaction and then should enter the code
of Cash Receipts. After entering the code the window of cash receipts shall
be on the screen, then after entering the number of cash memo, he should
enter the account number of the customer and then the amount, which is
20000 in our example. So in this way the amount of 20000 will be added to
the account of this customer.
The next option is of “Reports” this option is used for the reports like
Bank Statement. Many customers visit the bank to get their bank statements
either for reconciliation or for some other purpose. Generally the reports are
taken by the institutions and thus for report a person must have the
application for the bank statement, then this application is approved by the
Operation Manager and the operator is obliged to give the print command for
the bank statement of that account. In this way a person can get his/her
statement.
NBP Saiban is the most affordable House Financing Scheme.You can avail
now and repay over a 3 to 20 years period.
Home purchase loans up to 10 million.
Home reconstruction loans up to 10 million.
Home improvement loans up to 2.0 million (3 to 15 years).
One of the Top Banks on Emerging Markets - 2002
(Global Finance, USA)
A secure and reliable government bank since 1949.
A strong network with approximately 1200 branches around the world.
Wide range of products and services
36
Procedure
38
Advances Department
“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
39
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
Types of Advances
Demand Finance
Cash Finance
Running Finance
Types of loans
The credit department of NBP has providing the following types of loans
Financial Condition
Structural Liquidity
Industry/Business of Operation
Assets Management
• 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
General Banking
General banking area is also call the operations group. It consist on following
section
• Accounts section
• Remittance
• Clearing system
• Government section
• Consumer and retail business
• 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. Department starts
performing its function. Proof list is checked by the
43
Types of accounts
Following types of accounts are open in NBP
• Saving account
• Current or demand account
• Fixed account
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.
Payment of Cheque
It is bank’s primary function to repay the money required for its customer’s
account usually by honoring his cheques. It is a contractual obligation of a
banker to honor its customer’s cheque if the following essential are fulfilled
Remittances Section
Instrumental Transfer
Instrumental transfers are following
45
Demand Draft
Pay Order
Pay Slip
Call Deposit
Call deposit are not actual deposits of bank. It is in fact the liability of the
bank. Call deposit are often prepaid by the bank for contractors.
46
Electronic Transfer
Electronic transfer is of following types
Telegraphic Transfer
t 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
to the person’s 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.
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.
Clearing Department
48
Pay-in Slip
The customer fills pay-in slip. This slip is just like deposit slip. The cheque
number, date, amount and account number must be written on this slip.
Computer Section
49
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.
In national bank of Pakistan special codes are assigned to each branch those
codes are set in order to assess the head office in controlling the overall
activities. In this context special code is also given to Abbottabad main
branch. The branch code of national bank Pakistan Abbottabad main branch
is 0301.
50
Horizontal analysis
In this analysis one particular can compare with the same category of item of
other year. More than one year data is required for this analysis.
Vertical analysis
In common size or vertical analysis we take total assets as a base year and
compare it to all other factors. Company may purchase some fixed assets
and giving loans to their customers. Same like this investment also increases
which means that the company advances the loans and their ability of work
increased due to this.
Percentage
Particulars 2009 2008 change RS. Change
Cash and Balance with
treasury banks 71196956 94446552 132.655 (23249596)
Balances with other banks 31019330 49784884 160.496 (18765554)
Lending to financial
institutions 16282942 10511322 64.5541 5771620
Current Asset 118499228 154742758 130.585 (36243530)
Investments 156985686 144735672 92.1967 12250014
Advances 268838779 221443963 82.3705 124103107
Other Asset 23941056 18339514 76.6027 5601542
Operating Fixed Asset 9454365 9202969 97.3409 251396
Defer tax Asset - 1275949
Total Asset 577719114 549740825 95.1571 27978289
Liabilities
Bills payable 1741156 7214671 414.360 (5473515)
Borrowings from
Financial 8756847 11084790 126.584 (2327943)
Deposits and other
accounts 463426602 465571717 100.462 (2145115)
Subordinates loan - - - -
Liabilities against leased
Asset 16629 17058 102.579 (429)
Other Liabilities 24974450 23068314 92.3676 1906136
Defer Tax Liabilities 4462718 29185 0.65397 4433533
Total Liabilities 503378402 506985735 100.716 (3607333)
Net Asset 74340712 42936442 57.756 31404270
Represented By
Share Capital 5908927 4924106 83.333 984821
Reserves 13536041 10813914 79.889 2722127
Unappropriated profit 16713506 9161747 54.816 7551759
36158474 24899767 68.862 11258707
Surplus revaluation of 38182238 21345965 55.905 16836273
52
asset
Total Representation 74340712 42936442 57.756 31404270
%age %age
Particulars 2009 2008 2009 2008
Cash and Balance with
treasury banks 71196956 94446552 12.323 17.180
Balances with other banks 31019330 49784884 5.3692 9.0560
Lending to financial
institutions 16282942 10511322 2.8184 1.9120
Current Asset 118499228 154742758 20.511 28.148
Investments 156985686 144735672 27.173 26.327
Advances 268838779 221443963 46.534 40.281
other Asset 23941056 18339514 4.1440 3.3360
Operating Fixed Asset 9454365 9202969 1.6364 1.6740
Defer tax Asset - 1275949 0.2321
Total Asset 577719114 549740825
Liabilities
Bills payable 1741156 7214671 0.3458 1.4230
Borrowings from
Financial 8756847 11084790 1.7396 2.1864
Deposits and other
accounts 463426602 465571717 92.063 91.831
Subordinates loan - - - -
Liabilities against leased
Asset 16629 17058 0.0033 0.003364
Other Liabilities 24974450 23068314 4.9613 4.5500
Defer Tax Liabilities 4462718 29185 0.8865 0.0057
Total Liabilities 503378402 506985735
Net Asset 74340712 42936442
53
Represented By
Share Capital 5908927 4924106 1.0228 0.8957
Reserves 13536041 10813914 2.3430 1.9670
Unappropriated profit 16713506 9161747 2.8930 1.6665
Total 36158474 24899767 6.2588 4.5293
Surplus revaluation of
asset 38182238 21345965 6.6091 3.8829
Total Representation 74340712 42936442
For the analysis of the financial statements of the NBP we use the ratio
analysis in order to get a clear vision about the financial position with simple
interpretation.
Liquidity Ratios
The liquidity of a business firm is measured by its ability to satisfy its short-
term obligations as they came due. Liquidity refers to the solvency of the
firm’s overall financial position the ease with which it can pay its bills. Basic
measures of liquidity are:
Current ratio
Net working capital
Cash ratios
54
Current ratio
Interpretation:
A current ratio of 1.0 is occasionally cited as acceptable, but a value’s
acceptability depends on the industry in which the firm operates. In 2009 bank
was more liquid as compare to 2008. Current Liabilities are more then current
assets. Its means that bank is financing its fixed assets (long term investment
& deposits) with the current Liabilities, which is profitable but risky at the
same time. In 2009 the current liabilities (current deposits) of the bank have
increased but the rise in the current assets (short advances) is more. So in
2009 bank has improved its liquidity position by investing more in current
assets rather then in fixed assets.
Interpretation:
Net working capital is commonly used to measure a bank overall liquidity.
NBP has more current Liabilities (current deposits) then current assets (short
term advances & investments). So bank is using very aggressive approach by
investing current liabilities in fixed assets. Bank earning profit but at the same
time taking risk as well. In 2008 the NWC of Bank had improved a bit by
investing more in current assets rather then in fixed assets. So bank has
improved its liquid position by investing more in current assets.
Interpretation
This ratio will compare the most liquid asset cash with the most short term
liability (current deposits). NBP has less cash then the current Liability
56
(current deposits) so its means that bank has invest the depositors money in
different ventures.
Interpretation
This ratio will shows that how much the cash has maintained by the bank out
of its total assets. NBP has its assets in the form of investment, advances so
bank is availing its opportunity cost and still has sufficient cash reserves only
to fulfill the demands of Account holders & other financial institution.
Debt Ratio
The debt position of a bank indicates the amount of other people’s money
being used in attempting to generate profits.
Formula:
Debt To Assets Ratio=TL/TA*100
57
SWOT ANALYSIS
(SWOT) ANALYSIS
SWOT is the abbreviation of strengths, weaknesses, opportunities and
threats. Strength of the organization can be measured from the activities and
resources that give it a competitive edge over competitors. Weaknesses
reflect areas where the organization lacks better performance .threats are the
environmental condition that can affect the performance of the organization in
order to be more competitive.
58
STRENGTHS
NBP one of the largest financial institutions of Pakistan with eight million of
customer base NBP holds 24.6% share of time and demand deposits in
the country. Local currency deposits comprise 67% of bank's total
deposits while foreign currency deposits account for the rest.
NBP has an extensive domestic branch network of 1200 (according to the
latest data) branches located all over Pakistan. The Bank also has a
presence in 19 international locations including the USA, United Kingdom,
Europe and the Far East.
NBP's total assets stood at Pak Rs.370 billion on December 2000. This
included total earning assets of about Pak Rs.268 billion with gross loan
portfolio of Pak Rs.140 billion. The bank also has an investment portfolio
of Pak Rs.91 billion, which comprises treasury securities, corporate bonds,
shares and other securities.
NBP cash provision as percentage of non performing loans equal to 60%
this coverage factor for the non performing loans is the highest amongst
the nationalized commercial bank.
NBP is working as right arm government of Pakistan as it is responsible
for all claims of government for recovery as well as payment. All depositor
of NBP are in relief that their money security is guaranteed by government
of Pakistan.
59
It acts as an agent of the Central Bank wherever the State Bank does not
have its own Branch.
WEAKNESSES
NBP staff especially at lower considers their work as burden. They usually
waste time in other task a part in performing their duty. Using government
property for there own need. They are reluctant to accept change brought
by latest restructuring efforts.
The general out look and interior layout of branches are not as required
according to modern banking
NBP bearing up large burden in running those branches, which are not
producing any income but keep on adding expenditure.
NBP is relying on its traditional sources of income it has not taken benefit
from innovation in banking like introducing retail banking or consumer
banking and using any type of scheme to generate more deposits and
producing more advances. Further, more don’t even continue its credit
card due mismanagement and lack of control.
NBP is far behind in offering modern banking facility like automated teller
machines then other commercial bank in Pakistan as only eighteen
branches in all over country have this facility.
NBP has only forty-four on line branches. While from remaining branches
data gathering is time consuming, and not fool proof. Quantum of
settlement within
Different branches are pending because of this updating daily record is
becoming very difficult.
60
OPPORTUNITIES
for NBP for making it future prosper and can make NBP not less than any
THREATS OF NBP
Following are the major threats which national bank of Pakistan is facing:
• Major threats NBP facing is from its competitor especially from
denationalized commercial bank. In which MCB is on the top of the list,
The Bank provides 24 hour banking convenience with the largest ATM
network in Pakistan covering 15 cities with over 100 ATM locations.
• Retail banking and consumer banking resulting in the products such as
credit cards, housing finance and automobile finance lending to small
individual consumers, and purchases of automobiles, housing, and
consumer goods are generally made on a cash basis. These are
62
Suggestions
• NBP major fault is that wasn’t keeping its pace with on going changing
in banking industry unlike other banks. Now this bank combining all it
power and trying to approach other banks.
• Latest reorganizing efforts are necessary to make it cost effective also
making its facility accordingly to modern banking. These must
continue.
• Bank management has to put its all effort to change the prevailing
culture of the bank and to put the foundation stone of business
63
oriented culture. In which employees give important to the bank and its
customer.
• To attract the customer in the future NBP have to make extensive
effort to give facilities of retail and consumer banking. Plus the
technology in the banking which will be necessary for future banking is
another week area need to be stressed.