swot analysis of banking sector (NBP), internship report

1. National Bank Of Pakistan
Swot analysis:
Swot analysis is the internal analysis of any organization. It is the analysis that describe the
internal strengths, weakness of the bank. And the opportunities and threats for them.
The swot analysis of national bank of Pakistan are following.
Strengths:
The strengths is the main and important part of any organization which helps them to become
competitive organization. The strengths of national bank of Pakistan are:
 National bank of Pakistan is the first nationalize government bank in commercial
banking. NBP make their policies according to the government rules and regulation.
 National bank of Pakistan has western union facility. It is the fastest way to transfer
money from abroad.
 Being an oldest bank, NBP has a broad-base network. NBP has more than 1200
domestic branch network located in all over the Pakistan. And, have almost 22 overseas
branches.
 The main strength is NBP is the ATM founder. NBP provide large no. of ATM facility
to their customers.
 National bank of Pakistan is the only bank work as an agent of state bank.
 NBP provide online banking facility. The online services of NBP are very speedy.
 NBP perform CSR (corporate social responsibility), and due to this NBP called “the
nation’s bank”.
 The loyalty of NBP employees are very high. That’s why the turnover rate of national
bank of Pakistan is very low. As a govt bank NBP provide many facilities to their
employees.
 NBP provide job security to their employees with more benefits.
 As a government bank, NBP earn commission on govt. transactions. And NBP also have
more deposit than other banks because due to the government bank, people have more
confident and feel secure their money in NBP.

2.  NBP is highest rating bank and achieved many awards on national and international
level dur to its performance and efficiency.
Weakness:
National bank also have some weakness as their strengths. The weakness are:
 As a government bank, the main weakness is political pressure. It creates the negative
impacts on bank because some people take advantage of this pressure.
 National bank of Pakistan not doing any advertisement and less marketing to promote
their products and services. Other banks like allied and HBL doing many advertisings to
promote their services.
 NBP has less computerized network. Lack of modern equipment’s. Computerized
system save time energy of employees. But NBP used manual system as well
 There is the shortage of employees in NBP. due to this some employees have a lot of
work burden.
 The work distribution in NBP is uneven. Some employees have a workload and some
other are free.
 As a government bank, at the time of recruitment, they are doing favoritism. And the
favoritism is also taken at the time of promotion and bonus.
 NBP has less trained staff and insufficient technical education. So due to this problem
the work distribution is uneven. Mostly employees of the bank not even know how to use
computer.
 NBP has no modern IT system. They used old system which are not proper and hanged
some time. Due to old IT system in modern era NBP face many problems.
 National bank of Pakistan has less online branches. In small areas, people not get much
facilities there. So, they must move to large cities to get those facilities like remittance,
online transfer.
Opportunities:
There are many opportunities for NBP which are
 The opportunity for NBP is growing banking system. The advance standards and more
contribution in market helps NBP for growing their banking system.

3.  NBP need to focus on electronic banking system. Because a world become a global
village due to advancement of latest technology. NBP must increase and adopt latest
technology to provide good services.
 As a government bank, NBP has more scope in economic market. NBP have a large no
of branch network in Pakistan so it is a great opportunity for them.
 NBP can earn more commission on govt transactions, because it work as an agent of
SBP.
Threats:
The threats for national bank of Pakistan are following.
 The main threat is competitors. Now many commercial banks are opened, and they
provide many services and products same as national bank of Pakistan. New competitors
specially foreign banks who provide services meet the standard. And they attract lots of
customers through promotion of their services.
 Customers satisfaction is more important. If customers are not satisfied, then they
moved/ switch to other bank. NBP must focus to the customers complains. And removed
those complains as soon as possible for their satisfaction.
 NBP must adopt modern banking system. Because many branches of NBP used
traditional way. So, it may cause to reduce the satisfaction of their customers and the
employees also.
 National bank of Pakistan as a government bank charge high interest rate on loans and
other services. Other banks charge low rates so, it become a threat.
 National bank of Pakistan is a government bank and work under their rules and
regulations. So, the political pressure by elected government is a threat for bank in shape
on loans.