NBP Presentation (Final)

GROUP MEMBERS

Topics For DiscussionHistory of National Bank of PakistanVision MissionGoalAwards and recognitionsMajor shareholders and customersEmployee & Customer Relationship

History of National Bank of Pakistan

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.The bank was created on the pattern of Imperial Bank of India.

History of National Bank of Pakistan (contd)Initially the Bank was established with the objective to extend credit to the agriculture sector. The Bank commenced its operations from November 20, 1949. The Banks Karachi and Lahore offices were subsequently opened in December 1949.

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

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.

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

Awards & RecognitionsIn June 2010 NBP was awarded with AAA rating by Credit Rating Company NBP is recipient of bank of the year award in 2010, 2008, 2006, 2005, 2004, 2002 and in 2000 as well.

Awards & RecognitionsNBP was also awardedBest Domestic bank in Pakistan in 2010Bank was ranked among top 500 banks in the world by The Banker Magazine in 2010 edition

Board of Directors Mr. Tariq KirmaniMrs. Haniya Shahid NaseemMs. Nazrat Bashir Mr. Ekhlaq Ahmed

Subsidiary CompaniesNBP Capital LimitedJSC Subsidiary Bank of NBP in KazakhstanNBP Exchange Company LimitedNBP Modaraba Management Company LimitedTaurus Securities Limited National Agriculture & Storage Company LimitedCast-N-Link Products Limited

Major Shareholders

Government of Pakistan

President of Pakistan

State Bank of Pakistan

Major Customers

WAPDASNGPLSAPPHIRE Industries CRESCENT Industries PEL

Policies & Strategies

Customer satisfactionEmpowering relationshipsCustomer solution

Market PositioningNational Bank of Pakistan is enjoying its position in the market as one of the most prestigious and trusted bank of Pakistan with a market share of about more than 24.6%. With such a huge market share it is enjoying its position as a market leader.

Latest Developments

Latest developments going on in NBP are the expansion & growth of IT department.More specialized departments.Growth in Electronic Banking.Islamic banking

Employee & Customer RelationshipNational Bank of Pakistan is trying its best to motivate its employees through recognition, awards and offering bonuses.National Bank of Pakistan delivering happiness and empowering emotions of its customers through his well behaved and caring employees, strengthening customer relationships and making people smile.

Employee & Customer Relationship (contd).

Aim of National Bank is to provide solutions to its customers.

Conference on Women Empowerment

Topics For Discussion

ProductsBranches & ATM Network

Products

NBP Advance Salary

Launched by NBP in January 2003

Offers its holder to avail 20 (twenty) advance net salaries in one go to be repaid in up to 60 (sixty) months.

Requires no collateral, insurance or requirements

Available for fixed-income permanent employees of federal & provincial government, semi-government local bodies and other government organizations

NBP Cash n Gold (Products Contd)Provides ready cash from idle gold jewelry

Rate of mark-up 15.50% P.A.

Facility of PKR. 20,000 against each 10 gms. of net weight of gold ornaments

Repayment after one year

No penalty for early repayment

NBP Investor Advantage (Products Contd)Confortable & Secure environment for trading

Does not require any security except for the customers equity (Cash or NBP approved shares) Customers equity will also be freely available for investmentFinancing Amount: Rs.50,000/ - To Rs.10,000,000/-Equity Requirement: In the Form of Cash or Shares or Both (Currently Minimum Rs. 215,000/- @ 30%)

Kishan Dost Mark up 13% P.AFast & Easy Way Available when neededWide range of scheme for farmersUp to 500000 to landless farmer on personal guaranteeFinance available on commercial property, Gold and paper security.Loan facility revolving basis for 3 years

NBP Kisan Taqat (Products Contd)

To raise the earnings of individuals Connected with dairy farms

Farmers are financed to purchase milk processing equipment to bring about increase in milk production

Available for the progressive suppliers of nestle milk pak

Cash Card (Products Contd)

Use it as a ATM in any of ATMs in Pakistan Use as a debit card in any of out in orix pos machine Cash withdrawel 20000/- per day Account balance enquiry Mini statement only in NBP ATMPIN change facility (NBP ATM)

PakRemit (Products Contd)Internet base Home remittance service For U.S. resident send money to home One must have valid US account or us Dollar debit or credit card Convenient and fast Reliable & Secure 24X7 Available

NBP Saibaan (Products Contd)Provides the facility of affordable, flexible and convenient home financing for all

Now one can open the door to ones dream home with NBP saibaan

Currently, the following items are financed by nbp saibaan:

Home purchase up to 35 million Home construction up to 35 millionHome renovation up to 15 millionPurchase of land and for construction thereon up to 35 millionRe-financing (balance transfer facility (BTF)

NBP Premium Aamdani (Products Contd)

Interest up to 12.25% P.A.

Free cheque book / NBP cash card (ATM+debit)

Free demand draft, pay order and NBP online aasan bankingRunning finance facility up to 90%

NBP Premium Saver (Products Contd)

Type of account involved in this product is PLS saving accountInterest rate upto 8.50% P.A.Free NBP cash card (ATM+debit)Profit is calculated on monthly basis and paid on half yearly basis Minimum balace 20,001 & maximum is 1 millionTwo debits allowed in a month and no limit deposit transaction

Branches & ATM Network

Branch NetworkHead OfficeNBP Building is housed at I.I. Chundrigar Road Karachi.

Domestic Branches(Branch Network Contd)

Branches 1,289Islamic05Online Branches311Swift Branch13

Overseas Branches(Branch Network Contd)

Overseas Branches22Representative Offices9

ATM Network

Operating in more than 17 District across the country100 ATM Machines

VehariMultanFaisalabadMuzaffarabadGujarKhanPeshawarGujranwalaQuettaGujratRawalpindiHyderabadSheikhupuraIslamabadSialkotKarachi southKarachi westLahore cent.Lahore EastMirpur

E11MBA130

Topics For DiscussionServicesPast 10 Year PerformanceSWOT AnalysisPEST AnalysisRecommendationConclusion

Services

International BankingServicesNBP is at the forefront of international banking in Pakistan

Conducting banking operations in major financial cities like London, New York, Paris, Tokyo, Washington D.C.

SWIFT System (Services Contd)SWIFT- Society For Worldwide Inter Bank Financial Telecommunication

SWIFT provides speedy services in the area of home remittances

All NBP overseas branches and overseas correspondents are drawing remittances through SWIFT

N.I.D.A.(Services Contd)It stands for National Income Daily Account launched in December 1995 to attract corporate customers It is a current account scheme

Agricultural Finance(Services Contd)I Feed The World ProgramTo help farmers maximize the per acre production with minimum of required input

Agricultural CreditExtending credit (loans) to farmers to help them introduce mechanization in agriculture

Production LoansMeant for basic inputs of the farm like seeds, fertilizers, sprayers, etc

Corporate Finance(Services Contd)NBP specializes in:

Running financeCash FinanceProject Finance

Other ServicesIt is also offering:

Demand DraftsMail TransfersPay OrderTravelers ChequesLetter of Credit

Five Year PerformanceDEPOSITSRs. In Millions

Chart1

50182720062006

59190720072007

62493920082008

72746520092009

83215220102010

Series 1

Column2

Column1

Sheet1

Series 1Column2Column1

2006501827

2007591907

2008624939

2009727465

2010832152

To resize chart data range, drag lower right corner of range.

Five Year PerformanceASSETSRs. In Millions

Chart1

63513320062006

76219420072007

81775820082008

94458320092009

103502520102010

Series 1

Column2

Column1

Sheet1


2006635133

2007762194

2008817758

2009944583

20101035025


Five Year Performance(Contd) Rs. In MillionsADVANCES

Chart1

31611020062006

34031920072007

41298720082008

47524320092009

47750720102010

Series 1

Column2

Column1

Sheet1


2006316110

2007340319

2008412987

2009475243

2010477507


Five Year Performance(Contd)Rs. In MillionsPRE-TAX PROFIT

Chart1

2631120062006

2806120072007

2300120082008

2130020092009

2441520102010

Series 1

Column2

Column1

Sheet1


200626311

200728061

200823001

200921300

201024415


Five Year Performance(Contd)Rs. In MillionsAFTER-TAX PROFIT

Chart1

1702220062006

1903420072007

1545920082008

1756220092009

1756320102010

Series 1

Column2

Column1

Sheet1


200617022

200719034

200815459

200917562

201017563


Five Year PerformanceEarnings Per ShareRupees

Chart1

12.6520062006

14.1520072007

11.4920082008

13.0520092009

13.0520102010

Series 1

Column2

Column1

Sheet1


200612.65

200714.15

200811.49

200913.05

201013.05


SWOT AnalysisStrengthsAgent to SBPGovernments TreasuryImportant role in economic developmentBig Market ShareLargest Agriculture Lender

WeaknessOnline BankingMarketing DepartmentCounter ServiceIncompetent staffInflation

SWOT AnalysisOpportunitiesNew Products and services New branches in foreign countryIntroduction of technology Introduce educated StaffThreatsInstability of GovernmentCompetition with other bankThreat of PrivatizationEconomic crisis

PEST Analysis

POLITICAL FACTORS:--

The political situation of Pakistan is very dynamic. The rapid change in Govt. also influences the rule regulations of NBP. Also the policies of new Govt. towards NBP such as privatization policy threat.

ECONOMIC FACTORS:--

Economic conditions of the country also have a strong impact on the organization. Our economy is basically consumption oriented and also consists of middle class population so there is less savings and a result people have less investing abilities and thinking.

PEST Analysis

SOCIAL FACTORS:--

Social factors also have a very important impact on the NBP. Being a bank of Govt. people feels confidence on NBP, also feel secure to deal with NBP. Also there is need for Islamic banking branches due to social pressure now a day. Other private banks have their separate Islamic banking branches.

TECHNOLOGICAL FACTORS:--The technological factors also affect NBP a lot. Technology is changing day by day, also become necessity for efficient working. But the national bank has not technologically strong environment, so not able to compete better with privateand foreign banks which are fully computerized and efficient due to adopting technological tools and techniques

Recommendation

The following recommendation can improve the present condition of the bank

Providing training to employees Expand branch network in rural areasImplement islamic banking Build a strong marketing strategy Elimination of Corruption

CONCLUSIONBy analyzing the financial statement of NBP, we came across to know that it is one of the most growing bank in subcontinent, however NBP working is still mostly on manual system. The latest systems, tools and technology is not implemented fully.

CONCLUSIONSo hence it is concluded that by improving trained workforce and investing in the sectors of Environment Health EducationSports NBP can maximize its profits and can become a Nations bank rather then just a government bank.

Documents

NBP Presentation (Final)