NATIONAL BANK OF PAKISTAN

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National Bank of Pakistan is the largest commercial bank operating in Pakistan

The bank is engaged in providing commercial banking and related services in Pakistan and overseas.

The Bank's services are available to individuals, corporate entities and government.

its business portfolio is a major lead player in the
debt equity market,
corporate investment banking,
retail and consumer banking,
agricultural financing,
treasury services

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NATIONAL BANK OF PAKISTAN

  1. 1. HIRA SHAHID KHANSHAHZADI NEELOFARSAHAR KHANSAMREEN LODHI
  2. 2. INTRODUCTION:National Bank of Pakistan is the largest commercial bank operatingin PakistanThe bank is engaged in providing commercial banking and relatedservices in Pakistan and overseas.The Banks services are available to individuals, corporate entitiesand government.its business portfolio is a major lead player in thedebt equity market,corporate investment banking, retail and consumer banking, agricultural financing, treasury servicesNBP headquarters in Karachi, Pakistan with over 1,254 branchescountry wide.Participating in "World Bank" and "Asian Development Banks"lines of credit. HIRA SHAHID KHAN
  3. 3. OVER VIEW OF THE ORGANIZATION: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 Nation’s Bank, by:Institutionalizing a merit and performance culture. Creating a distinctivebrand identity by providing the highest standards of services Adopting the best international management practices.GOALS: To enhance profitability and maximization of NBP share through increasingleverage of existing customer base and diversified range of products. Excellence inDirection Excellence in Growth Excellence in Performance Excellence in Management Excellence in Achievement
  4. 4. ORGANIZATIONAL STRUCTURE: CHAIRMAN & PRESIDENT BOARD OF DIRECTOR PRESIDENT’S SECRETARIAT COMMERCIAL & RETAIL BANKING GROUP CORPORATE & CREDIT AUDIT & COMPLIANCE INVESTMENT MANAGEMENT INSPECTION GROUP GROUP BANKING GROUP GROUP HRM & OPERATION SECRETARY BOARD TREASURY ADMINSTRATION GROUP OF DIRECTOR MANGEMENT GROUP GROUP SPECIAL ASSET Overseas MANAGEMENT Management I.T. GROUP Group GROUP
  5. 5. ORGANIZATIONAL NETWORK:BRANCH NETWORK:-10 Groups headed by SEVPs/EVPs. 9 Regions reporting to as many Regional Chiefsand 15 Single Branch Zones headed by Zonal Chiefs; 12 corporate branches and1,254 domestic branches headed by Branch Managers control its field operations.GLOBAL NETWORK:-18 Oversea Branches5 Representative Offices1 overseas SubsidiariesJoint Venture.DOMESTIC NETWORK:-1254 Domestic Branches6 domestic Subsidiaries29 domestic regional officesDOMESTIC SUBSDIARIES:NBP Capital Ltd.Taurus Securities Ltd.NBP Exchange Company LtdNational Agricultural and Storage company Ltd.Cast – N- Link Products Ltd
  6. 6. DEPARTMENTALIZATION: NBP DEPARTMENTS GENERAL BANKING CREDIT AND ADVANCE DEPARTMENT DEPARTMENT COMMERCIAL ACCOUNTS GOVERNMENT FOREIGN & RETAILING DEPARTMENT DEPARTMENT EXCHANGE DEPARTMENT DEPARTMENT1. GENERAL BANKING DEPARTMENT:General banking involves the following sections:•Deposit Section•Accounts Opening Section•Cash dealing Section•Clearance Section•Remittance Section•Lockers Handling Section
  7. 7. There are two broad categories of deposits. These are DEPOSIT1. Time deposit 2. Demand depositTYPES OF ACCOUNT/ DEPOSIT:- Checking Non-CheckingFollowing types of accounts are open in NBP DEPOSIT Accounts Accounts•Current or demand account•Saving account PLS Saving PLS TDR’s Account•Fixed account•Call Deposit Accounts Current Deposit Special Notice•Foreign Currency Accounts Accounts Deposit Accounts Foreign Currency2 ACCOUNT OPENING SECTION:- Accounts NIDA This section performs the following functions:•Opening of Accounts•Issuance of cheque books•Closing of accounts3 LOCKER SERVICE SECTION:- There are four types of locker depending upon the size of lockersoperate in banks.•Small size locker•Medium size locker•Large size locker•Extra large size locker
  8. 8. 4 CASH DEALING SERVICES:-•Cash receipts for receive deposits.•Cash payment for encashment of cheques.5 CLEARING SECTION:-•Local Clearing,•Short Credit Service,•Local Short Credit and•Inter CityCLEARING PROCESS:•Inward Clearing.•Outward Clearing .6 REMITTANCE SECTION:-•Pay Order.•Mail Transfer .•Demand Draft.•Telegraphic Transfer. SHAHZADI NEELOFAR
  9. 9. 2. ADVANCE DEPARTMENT:TYPES OF ADVANCES:DEMAND FINANCE:CASH FINANCE:RUNNING FINANCE:LOANS:TYPES OF LOAN:The credit department of NBP has providing the following typesof loans•Short term loans•Long term loans•Working capital loan•Syndicate (project) loan3. ACCOUNTS DEPARTMENT:The main function of account department of NBP is to maintain general ledger accounts and afterthe business hours the function of the account officer is to close books.1) ROUTING OF EXPENSE VOUCHERS:-VOUCHER SYSTEM: Voucher is a system, which is generally designed to provide strong internalcontrol over the transaction, In bank two vouchers are used DEBIT VOUCHER CREDIT VOUCHER
  10. 10. 2. PREPARATION OF DAILY ACTIVITY REPORTS:-The main function of this department is to check daily transactions whethercash, transfer of payments, billing, and clearing of all the departments.It includes the details of the following:•Loan transactions.•general ledger transactions•Foreign currency related transactions.•Fixed deposits transactions.3. PREPARATION OF WEEKLY AND MONTHLY STATEMENTS:Second major function of accounts department is the preparation of variousstatements.These statements are:A. WEEKLY STATEMENTSB. MONTHLY STATEMENTS4. PREPARATION OF TAX PURPOSE STATEMENTS:The department also prepares two statements for the purpose of paying tax onmonthly and annual basis.
  11. 11. 4. BILLING & GOVERNMENT RECEIPT/ PAYMENT DEPARTMENT:In this department all types of Government receipts i.e. Revenues, Taxes, Agriculture Tax,Government Fees, EOBI Funds and Utility Bills are deposited. 1 Payment of Provident Fund 2 Payment of Benevolent Fund 3 Payment of pension 4 Collection of utility bills, property taxes, Challans and dues of educational institution. 5 Payment of salaries 6 Payment of zakat5. FOREIGN EXCHAGE DEPARTMENT:-The foreign exchange department has four main parts on which the national bank works. It consists of:I. Imports and Exports.II. Foreign remittance.
  12. 12. 1. IMPORT AND EXPORT:- National bank acts as an intermediary in the exports and imports between the twoparties..There are four major types of contracts or term of payment that are being used in thetrade. OPEN ACCOUNT:ADVANCE PAYMENT:COLLECTION:LETTER OF CREDIT:2. FOREIGN REMITTANCE:It includes local and foreign currency fund transfer. NBP alsoprovide the facility to its customers in remitting funds from oneplace to another place.At present bank provides the following instrument that facilitatesthe transfer of funds.•TT ( telegraphic Transfer)• DD (Demand Draft)• PO (Pay Order)
  13. 13. 6. COMMERCIAL & RETAIL BANKING DEPARTMENT:National Bank of Pakistan serving following product lines:1) PREMIUM AAMDANI SCHEME: - Monthly Income Scheme2) PREMIUM SAVER SCHEME:- Yours saving reward (PLS Saving Account)3) SAIBAN SCHEME: - Open the Door to Your Dream Home (Home Financing)Main features of this scheme are as under.•Finance is available for:•Home Purchase•Home Construction•Home Renovation•Purchase of Land + Construction SAHAR KHAN
  14. 14. 4) ADVANCE SALARY SCHEME:- Personal LoanTake up to 20 times of Your Take Home Salary 5) CASH CARD SCHEME: - one card does it all ATM + Debit Card6) INVESTOR ADVANTAGE SCHEME:- easier financing, profitable tradingFinancing Facility for Stock / Retail Investors7) CASH N GOLD SCHEME:- Ancash and meet your needs Ready Cash against Gold
  15. 15. 8) KISAN DOST SCHEME:- Agriculture Made EasyAgriculture Farming Program9) KISAN TAQAT SCHEME:- promise of prosperityDairy Farm Scheme10) PAKREMIT SCHEME:-NBPs Internet Based Home Remittance Service
  16. 16. 11) NBP PROTECTION SHIELD SCHEME:- Life is PreciousPersonal Accident Insurance12) PRESIDENT’S KAROBAR SCHEME :.Mera Apna Karobar13) NBP STUDENT LOAN SCHEME:-Pursuant to the announcement made by the Federal Finance Minister inhis 2001-2002 budget speech, a STUDENTS LOAN SCHEME (SLS) forEducationwas launched by the Government of Pakistan in collaboration with majorcommercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL).
  17. 17. STRENGTH:•NBP one of the largest financial institutions of Pakistan with eight million of customer•NBP has 1254 branches located all over Pakistan. And 23 international locationsincluding the USA, United Kingdom, Europe and the Far East.•It acts as an agent of the Central Bank wherever the State Bank does not have its ownBranch.•Performing social responsibilities and claiming “The Nation’s Bank”•Earning commission from SBP on Government transaction•Leading bank in agriculture financing amongst commercial banks with the marketshare of 15%OPPORTUNITIES:•Being a Government Bank NBP having wide scope in economic market.•Its vast network of domestic and overseas branches can help to expand business.•Bank’s deposit is increasing rapidly so there is a great opportunity to enhance its investmentand financing.•Being an agent of State Bank of Pakistan it can play vital role in local economy.•Amongst highest bank is Asia, NBP further expand its services proudest and earn more profit.•The bank is reshaping its portfolios by investing into higher area of growth SAMREEN LODHI
  18. 18. WEAKNESSES:•Lowest Internal Control and Compliance System, SBP rated “Marginal” which is alarmingfor the Bank.•Unsatisfactory corporate culture of the Bank.•Less number of Online Branches.•Ineffectively use of technologies i.e. Information technology•Shortage of staff- per employee customer is very high side•Technical education and training of staff is insufficient The workload in NBP is not evenlydistributedTHREATS:•SBP penalties due to low internal control and compliance.•Government, SBP and Prudential Rules and Regulations.•Schedule banks and Multinational/International bank’s profit rates.•Its staff switching over to other private banks due to more facilities.•Other bank’s charming atmosphere and relaxation in documentation.•NBP staff code of ethics and practices.•High number of complaints regarding staff behavior.•Payments and FBR Collections create heavy workload.
  19. 19. DILEMMA FACED BY ORGANIZATION:Rather NBP is a nations bank but like any other organization NBP also is not free from problems and crisis..In this topic the most important problems are included which are widely present at the organizational level.1. PROBLEMS AT THE BRANCHES OF NBP:-1) Customer Satisfaction:2) Poor record management and filing system:3) Unequal distribution of work:4) Marketing visits:
  20. 20. 2. FUNNCTIONAL PROBLEMS:-• Formal Organization:•Excessive paper work:•More accounts fewer deposits:3. ADMINISTRATIVE PROBLEMS:•Job analysis is not effective:•Lack of appreciation:4. PERSONAL MANAGEMENT PROBLEMS:Need for better training programDeveloping Managerial LeadershipRecruitment policyPromotionsLack of business communication
  21. 21. CONCLUSION:The primary objective of NBP was to purchase jute fromthe growers in the former East Pakistan and also to performthe commercial banking functions in the country.The strength of this bank is that it is acting as Agent ofState Bank of Pakistan, providing Agency Arrangements fordifferent government organizations include WAPDA and PIA,Profitability and a vide coverage throughout Pakistan.The challenge it is facing is currently the lack ofimplementation of rules and regulations that may lead toweak organizational culture, old organizational culture, noregular promotions practices and not much use of ITtechnology in bank as other are using.As analysis shows that NBP is a most growing organizationwith highest return on capital, largest market share amongstall Pakistani banks and cost to income ratio is the highest inbanking sector. But there is further need for improvement toovercome weaknesses and to maintain its position as an“Asian Tiger” in banking field.
  22. 22. THANKYOU

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