National Bank of Pakistan

AUDITINGAUDITING

FINAL PROJECTFIRST DRAFT

TO:TO:MR. IRFAN MEHMOOD

FROM:ALLIED GROUP #10M. MOBASHAR ALI 08117032ASIF MEHMOOD 08117033IMRAN KHAN 08117043SALMAN‐UL‐MUSTAFA 08117044

GIFT University MBA (Banking & Finance)Section A

OVERVIEW OF NBPOVERVIEW OF NBP•NBP has authorized capital 1,000,000,000 shares of Rs. 10 eacheach.•The Federal Government and SBP held about 75.60% shares of the bank as at 31.12.2008.•NBP maintain its position as Pakistan’s premier bank•NBP maintain its position as Pakistan s premier bank.•It specially emphasis on fostering Pakistan’s economic growth through

•Aggressive•Aggressive•Balanced lending policies

•NBP also handles treasury transactions for the Government of Pakistan as an agent of the SBP.g•Currently, NBP has 1276 branches with 29 regional offices.•NBP enjoys highest Credit rating ‘AAA’ assigned by the / d d

j y g g g yM/s JCR‐VIS Credit Rating Company Ltd.

COMPLIANCE OF STAEMENTS•International Financial Reporting Standards•International Financial Reporting Standards (IFRS)

•Islamic Financial Accounting Standards (IFAS)•Islamic Financial Accounting Standards (IFAS)

•Requirement of Companies Ordinance 1984

•B ki C i O di 1962•Banking Companies Ordinance 1962

•As per the notice of SECP IFRS‐ 7 “Financial i t t Di l ” h b dinstruments Disclosure” has been made applicable.

• d di h i l f h S•And according to the circulars of the SBP.

Excellence in Direction

To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibilities.

Excellence in Value

NBP will aspire to the valuesNBP will aspire to the values that make NBP truly the Nation’s Bank, by: •Maximizing stakeholder’s valueInstitutionalizing a merit and performance culture.•Creating a distinctive brand

a g sta e o de s a ue•Discharging our responsibility as a good corporate citizen of Pakistan and in countries where•Creating a distinctive brand

identity by providing the highest standards of services•Adopting the best international

Pakistan and in countries where we operate

•Adopting the best international management practices

Excellence in Ambition

•Highest standards of integrity•Institutionalizing a team network and performance g pculture•Excellence in service•Advancements of skills for tomorrow’s challenges•Advancements of skills for tomorrow s challenges•Awareness of social and community responsibility•Value creation for all stakeholders

Excellence in Growth

To enhance profitability and maximization of NBP p yshare through increasing leverage of existing customer base and diversified range of products

Sixty Years of Excellence

NBP was awarded in 2008:•Bank of the Year (2008)

•World’s best Foreign Exchange Bank (2008)

COMPETITORS OF NBPCOMPETITORS OF NBP

Public Sector

•First Women Bank Limited FWB

•The bank of Khyber KB•The bank of Khyber KB

•The Bank of Punjab BOP

COMPETITORS OF NBP (Cont )COMPETITORS OF NBP (Cont.)Private SectorPrivate Sector

•My Bank Limited •Allied Bank Limited

•Bank Al‐Falah Limited •Atlas Bank

•Bank Al Habib Limited •Habib Bank Limited

•Askari Bank •Saudi Pak Bank Limited

•Faysal Bank Limited

•Metropolitan Bank Limited

••Muslim CommercialBank Limited

O G O C CORGANIZATIONAL HIERARCHY CHART

StructurePRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD

REGIONAL CHIEFREGIONAL CHIEF

ZONAL CHIEF

BRANCH MANAGER

ORGANIZTIONAL HIRARCHY CHARTORGANIZTIONAL HIRARCHY CHART

HEAD OFFICEHEAD OFFICECEO

Corporate Banking De

Foreign

Credit Sanction

Credit Administration

DEPARTMENTS

Foreign Trade

Accounts

Administration

Human Resource

Finance

IT

Operations

Investment & Treasury

IT

Audit & Inspection

Internal Div & FTPC

AdministrationAgriculture

Administration

SERVICES OFFERED BY NBPSERVICES OFFERED BY NBP

Monthly Income Scheme•Amount of investment required from Rs. 20,000/‐ to Rs. 5,000,000 •Investment period is 5 years ••Free Demand Draft, Pay Order and NBP Online Aasan Banking•Free Cheque Book / NBP Cash Card (ATM + Debit) •Profit paid every month as follows:

PERIOD PROFIT RATES

ST1ST year 7.50 %

2nd year 8.50 %

3rd year 9.50 %

4th year 10.50 %

•Financing facility available up to 90% of the deposit value•Premature encashment will attract penalties•Zakat and withholding tax will be deducted as per rules

5th year 11 %


PLS Saving Account•Minimum saving balance of Rs. 20,001 and a maximum balance of Rs. 300,000 •F NBP C h C d (ATM D bit)•Free NBP Cash Card (ATM + Debit) •Two debit withdrawals allowed in a month and no limit on number of deposit transactionslimit on number of deposit transactions •Profit calculated monthly and paid on half yearly basis

SERVICES OFFERED BY NBPSERVICES OFFERED BY NBPAnother step towards your prosperity

President's Rozgar Scheme,

if d b dif you are aged between 18 and 45years, you could be eligible for easy financing for self employment inthe categories below:the categories below:

NBP Karobar Utility Store NBP Karobar Mobile Utility StoreNBP Karobar Mobile Utility Store NBP Karobar Mobile General StoreNBP Karobar Transport NBP Karobar PCONBP Karobar PCONBP Karobar Tele‐Centre


Product Items Home Purchase Home Construction Home R ti P h f L d + C t ti B l T fRenovation Purchase of Land + Construction Balance Transfer Facility (BTF) Home Purchase (House or Apartment) * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)85:15 (Maximum) Home Construction * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum) Home Construction * ‐ Product Detail Financing Amount Upto35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (M i )(Maximum) Home Renovation * Financing Amount Upto 15 Million Financing Period 3 to 15 Years Debt to Equity 80:20 (Maximum) Purchase of Land and for Construction thereon * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt toAmount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 80:20 (Maximum) Re‐Financing (Balance Transfer Facility (BTF)) * If you have a Home Finance Facility outstanding with another bank you can have it transferred to NBP through a hassle‐free process.


Take upto 20 advance salariesTake upto 20 advance salaries(currently for NBP account holders of govt. or related organization

employees).

National Bank of Pakistan (NBP)National Bank of Pakistan (NBP)NBP Advance Salary , the leading personal loan product of the country, is maintaining its inimitability ever since it was launched. This was only possible due to its swift growth and remarkable loan disbursement of over 138 billi138 billion. You can avail up to 20 net take home salaries with easy repayment installments. Its hassle free acquisition with no prior formalities and easy availability in a short turn around time are attributed as the most ydistinguishing features of the product. The product is offered countrywide

SERVICES OFFERED BY NBPSERVICES OFFERED BY NBPShop to your heart's desire!

NBP CashCard is an 24‐hour direct access ATM/Debit card toNBP CashCard is an 24 hour direct access ATM/Debit card to your bank account, which lets you pay directly from your account as an alternative payment method to cash. The transaction is authorized and processed by entering PIN. The NBP CashCard holders are able to transact at any of the 4000 + Merchants where Orix logo is displayed and can withdraw cashMerchants where Orix logo is displayed and can withdraw cash from NBP, 1‐Link & M‐NET ATM’s across the country.

Advantages• You won't need to carry a lot of cash with you every time you

tgo out.• Secure and Safe transaction.• Account Information on tips (like: Mini Statement, Balance

Inquiry, Utility Bill Payment etc.)• Enable To Withdraw Cash From 1‐Link ATMs / MNET ATMs• Enable To Withdraw Cash From 1‐Link ATMs / MNET ATMs. • Enable To Make Purchases From Around 4000 POS

(Merchants) Countrywide including 2500+ POS in Karachi.• No Card Issuance Fee for first 12 Months

SERVICES OFFERED BY NBPSERVICES OFFERED BY NBPFinancing Facility for

Retail Investors

• Product Information Financing Amount: Rs.50,000/ ‐ To Rs.10,000,000/‐

Retail Investors

Equity Requirement: In the Form of Cash or Shares or Both (Currently Minimum Rs. 215,000/‐@ 30%)

Shares: As per NBP Approved List Available. Shares In Physical Form Not Acceptable.

Trading: Allowed Only Through Trading Centers Created by NBP and Operated by Taurus Securities Limited (A Subsidiary of NBP)

Pricing

Fixed Price At The Time of Facility Sanction, Currently 6 Month Kibor + 3% (Per Annum)

Other Charges On Time Application Processing Fee of 0.5% of the loan amount or Rs.5,000/‐ (Whichever is lower)

• Brokerage Charges/ Fees/ Taxes/ etc. Charged At Actual On Brokerage Invoices

• Documentation Fee Would Be Charged On Actual

Requirements Photograph of Applicant

• NBP Account ‐ Current or PLS

• Marginal Financing Application Form

• Copy of CNIC

• Copy of CNIC of Two (2) References

• Borrower Basic Fact Sheet

• Duly Filled In Statement of Assets & Liabilities

• List of Shares, Given as Margin (Optional)


Get extra benefit from your gold•• With NBP's Cash n Gold, you can

meet your need for ready cash against your idle gold jewelry.

• Rate of mark‐up 13% p.a. Facility of Rs. 10,000 against each 10 gms of net contents of gold No maximumnet contents of gold No maximum limits of cash Repayment after one year Roll over facility Only gold ornaments acceptable Weight and quality of gold to be determined byquality of gold to be determined by NBP's appointed schroffs No penalty for early repayment

Meet your need for ready cash against your idle gold jewelry with no

minimum limits


SERVICES OFFERED BY NBPSERVICES OFFERED BY NBPNBP KISAN DOST


Pakremit is an internet based Home Remittance ServicePakremit 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

k d h h bweek. Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well.


Insurance Coverage In case of Accidental Death (Including death due to *Riots, *Strikes, *Civil commotion, *Acts of Terrorism and Natural Calamities like Flood, Earth Quake, Cyclones etc).

Coverage of Rs. 200,000/‐ for Rs. 20/‐ per month

Definitions: *provided the insured is not directly involved in these activities "Accident”means unintentional, unfortunate or a harmful event by chance or apparent cause.“Accidental Death”means death due to accidental injuries but not illnessAccidental Death means death due to accidental injuries, but not illness.“Insured Person”means a National Bank of Pakistan PLS account holder, aged between 18 years and above, and whose premium is deducted & details are reported to the selected insurance company by NBP.“Policy”means Group Personal Accident Policy dated 26/09/05 executed betweenPolicy means Group Personal Accident Policy dated 26/09/05 executed between NBP and Insurer.“Principal Sum”means the amount stated in the Policy’s Schedule of Benefits as respects each Insured Person.

YEARS OF PERFORMANCEYEARS OF PERFORMANCE

Y 2003 2004 2005 2006 2007 2008Year 2003 2004 2005 2006 2007 2008

Total Assets 468,972 553,231 577,719 635,133 762,194 817,758

Deposits (in million) 395 492 465 572 463 427 501 872 591 907 624 939Deposits (in million) 395,492 465,572 463,427 501,872 591,907 624,939

Advances (in million) 161,266 220,794 268,839 316,110 340,677 412,987

Investments 166,196 149,350 156,986 139,947 210,788 170,822

Shareholder's Equity 18,134 24,900 37,636 53,045 69,271 81,367

Pretax Profit (in million) 9,009 11,978 19,056 26,311 28,061 23,001

After Tax Profit (in million) 4,198 6,195 12,709 17,022 19,034 15,459

Earning per Share 5 7 14 19 21 17

Return on assets Pretax Profit 2.00% 2.40% 3.40% 4.30% 4.00% 3.00%

Number of Branches 1,199 1,226 1,242 1,250 1,261 1,276

Number of Employees 13,272 13,745 13,824 14,019 14,079 15,204

REASONS TO JOIN NBPREASONS TO JOIN NBP

• NBP is the only bank that offering pension plans to y g p pits employees after retirement.

• It has a greater social responsibilities and to the “ ’ ”community as “THE NATION’S BANK”.

• We feel job security after joining NBP.• B i G t B k id di l (f ll)• Being a Government Bank, provide medical (full), utilities allowance to its employees.

• NBP has providing training to its new employees that• NBP has providing training to its new employees that was also shows by the increase in operating expenses of year 2008.

Documents

National Bank of Pakistan