BACKGROUND

National bank of Pakistan (NBP) was developed in 1949. It served as the central regulatory bank
of Pakistan till the time State Bank of Pakistan was established in 1949. National bank of
Pakistan is the complete government bank and it undertook government treasury operations. The
two major competitors of national bank of Pakistan are united bank limited (UBL) and Habib
bank of Pakistan. The first branch was open in I.I Chandigarh road Karachi. And after, they make
it the head office of the bank.

INTRODUCTION
National Bank of Pakistan is the Pakistan's premier bank determined to set higher standards of
achievements. It is the major business partner for the Government of Pakistan with special
emphasis on fostering Pakistan's economic growth through aggressive and balanced lending
policies, technologically oriented products and services offered through its large network of
branches locally, internationally and representative offices.

In modern business services provided by organizations are termed as Products. At NBP groups
conceive and design the products, which are approved by the higher management. At this point,
Information Technology Group get involved in designing the software in well mannered and
working hard, which is backbone needed to launch the products. The hardware and database
requirements are discussed, finalized and implemented after approval of the president of the
bank.

A scenario was explained to us for understanding the whole process. When Credit Card System
was finalized for launch by higher management, information technology group designed,
implemented the related software solution. It also handled the access to the central databases for
credit reports. Training was also provided to the bank staff for effective working.

The Boards of Director choose Syed Ali Raza as the President of the national bank of Pakistan in
2005. Ant still S. Ali Raza is performing their job as president of the national bank of Pakistan
and also the Chairman. National bank of Pakistan (NBP) is governed by Board of Directors.
Board of Directors
 S. Ali Raza
(Chairman & President)

 Dr. Waqar Masood Khan

(Director)

 Iftikhar Ali Malik

(Director)

 Syed Shafqat Ali Shah Jamote

1
 (Director)
 Mohammaad Zubair Motiwala
(Director)

 Sikandar Hayat Jamali

(Director)

 Azam Faruque
(Director)

National Bank of Pakistan (NBP) provides Services through more than 1200 branches in
Pakistan and 22 branches in overseas with more than 120,000 employees. National bank of
Pakistan (NBP) is the only Pakistani bank to have representative offices in Canada, China and
Uzbekistan. The economic potential of these locations is enormous. National bank of Pakistan
(NBP) was the first international bank to open its branch in Kabul in October 2003.

The Chart elucidates the broader working scenario. Head office at Karachi plays as a central
point. Administratively working of the bank is divided into Groups. They are subdivided into
Wings. The area of operation is divided into 29 regions.

Domestic Branches: Overseas Branches:

 29 Regional Offices  16 Overseas Branches

 1,189 Branches  4 Representative Offices
 143 Online Branches  1 Subsidiary
 4 Subsidiaries 1 Joint Venture

National Bank of Pakistan (NBP) have achieved bank of the year Award-2001, 2002, 2004 &
2005 by the Banker. It has also achieved best foreign Exchange bank in Pakistan 2006 by Global
Finance, Kissan Time Award 2006 (For its services in the Agriculture sector) and Best bank in
the Emerging Markets from Pakistan in 2006 by Global Finance.

The VISION of the NATIONAL BANK OF PASKITAN:

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

The MISSION of the NATIONAL BANK OF PAKISTAN:

NBP will aspire to the values that make NBP truly the Nation’s Bank
Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we
operate.

2
The CORE VALUES of the NATIONAL BANK OF PAKISTAN:
 Highest standards of integrity.
 Excellence in services.
 Awareness of social and community responsibility.

National bank of Pakistan (NBP) clearly defines the Social responsibility in every task of the
bank. It performs the Social responsibility within the Country and outside the country with great
efforts and authentic form. In social responsibility NBP have no particular interest, but because
for the sake of society, NBP perform their social responsibility with pure heart and soul. Because
of the “NATION’S BANK”, we care our people.

STRUCTURE OF THE NATIONAL BANK OF

PAKISTAN
In National Bank of Pakistan, the head is called “Chairman” or “President” of the Bank. And
after President there is Five Broad of Directors. National Bank of Pakistan has eleven Groups
which control the working of the Divisions, Wing, Department, Section and Regional of the
national bank of Pakistan. In NBP, “Department” is called “Wings”.

Chairman &
President

Board of
Directors
President’s
Secretariat
Secretary Board
of Directors

Corporate & Credit

Investment Audit & Inspection
Management Compliance Group
Banking Group Group
Group

HRM & Commercial & Treasury

Administration
Operation
Retail Banking Management
Group Group Group Group

3
Special Assets Overseas
Management Management I.T. Group
Group Group
National bank of Pakistan divided their task in to separate jobs. Basically national Bank of
Pakistan having different groups, and each group perform different task specialization in their
department. National Bank of Pakistan Categories their departments through their work
specialization. And NBP hire their employees also through work specialization. The following
Chart shows the Work Specialization in the bank. HRM & Administration, Operation,
Commercial & Retail Banking, and I.T Group are performing different working in the
Organization.

HRM & Commercial &

Operation
Administration
Group
Retail Banking I.T. Group
Group Group

National Bank of Pakistan is structurally divided into Groups and groups are also subdivided into
Departments, Wings, and Divisions. National Bank of Pakistan has different Department in the
Group and each department performing work, as their task assign. Department also subdivided
into working bases.

National Bank of Pakistan is divided their group in to Functional bases department or Wings.
Through this employees were concentrate their working and they work efficiently and
effectively. In Credit Management Group, there are different wings, which perform different
works, as their function assign.

Credit Management
Group
(Functional Deptt)

Administration Credit Industrial Credit Policy &

Wing Monitoring Wing Research Wing SME Wing

1. GEOGRAPHIC DEPARTMENT

National Bank of Pakistan (NBP) provides Services through more than 1200 branches in
Pakistan and 22 branches in overseas. National bank of Pakistan (NBP) is the only Pakistani
bank to have representative offices in Canada, China and Uzbekistan. The economic potential of
these locations is enormous. National bank of Pakistan (NBP) was the first international bank to

4
open its branch in Kabul in October 2003. The area of operation is divided into 29 Regions. NBP
divided their groups in to different geographic location.

Special Assets
Management Group
(Geographic Deptt)

SAMG - North SAMG – South SAMG – Head

(Lahore) (Karachi) Office

2. PROCESS DEPARTMENT

National Bank of Pakistan divided their Group in to their process wise. In Compliance
Group, there is different process department or Wing, which control the process of the Group.

Compliance Group
(Process Deptt)

Administration Market &

Wing SBP Inspection Liquidity Risk
Credit Risk

3. CUSTOMER DEPARTMENT:

National Bank of Pakistan grouped according to the type of customer. Hence Customer
Departmentalization can be defined as grouping jobs according to the common customers or
the types of customers served by an organization. National Bank divided Operation Group
into Different Department or Wing.

Operation Group
(Customer Deptt)

Customer Customer Services Financial Institutional

Facilitation & Admn.
5
& Govt. Business & Cash Manag.
 National Bank of Pakistan (NBP) provides Services through more than 1200 branches in
Pakistan and 22 branches in overseas. And there are 29 Regions. All Branches of National
Bank of Pakistan report to five Head of RMT Members. And these five members reported to
regional Offices. Regional Offices report to the Group Chief of the Groups. All the process is
working very quickly and it not consume more time. And the Group Chief of each Group
Report to the President of the National Bank of Pakistan. All the data were proceed to the
President of the bank.

Chairman &
President

Operation Group HRM Group Audit & Inspection Compliance Group

Chief Chief Group Chief Chief

South Region North Region West Region East Region Overseas Reg

Head 1 Head 2 Head 3 Head 4 Head 5

Branch 1 Branch 2 Branch 3 Branch 4 Branch 5

National Bank of Pakistan is relatively Wide span of control and Flat Structure. National Bank of
Pakistan are less layers of management to pass a message through, so the message reaches more
employees faster. More skillful Group Chief Managers can control a greater number of
employees. National Bank of Pakistan assess that the internal Control environment is showing
signs of improvement as compared to previous year in all areas of the Bank.

6
 Chairman & President

HRM Group Operation Group CMG TMG

OD Wing IRD Wing T & S Wing Tech Wing C. M Wing Admn. Wing C. M Wing Admn. Wing

National Bank of Pakistan is having Decentralization in the Bank. And give the authority of
Decision Making to their Group Chief of every Group, to take decision, which is benefit for the
Organization. National Bank of Pakistan provides facility of making decision to their Senior Vice
President as well as Vice President of the every Group.

President (NBP)

Group Chief (Group)

SVP or VP (Group)

AVP (Group)

Grade Officers (Group)

National Bank of Pakistan has low Formalization in the bank. And Employees are free to take
action or decision in their work specialization. Employees are follow the rules and regulation in
the bank is very little formalized. Employees’ behavior is little bit guided by rules and regulation.

National Bank of Pakistan follow the Organic Model Organization. In NBP, there are Cross-
Functional teams, as well as Cross-hierarchical teams. There are free flow of Information and
Wide span of Control. NBP is Decentralization in nature and very low formalization in the bank.

7
Basically National Bank of Pakistan is high Diagonal Differentiation and every employee of any
department can easily communicate to other department of the Bank.

CONTINGENCY VARIABLE AFFECTING

STRUCTURE

The Structure of National Bank of Pakistan is affecting the Contingency Variable in some cases.
Strategy of the bank can affect the structure of the bank. Some year later, bank has a Strategy that
Branch report to Region and Region report to Zone and Zone report to Head and after Head
report to Group Chief of particular Group. But national Bank of Pakistan Analysis the Strategy
and Change the Strategy. Still national Bank did not have any Zone layer.

When State Bank of Pakistan, imposed an order to every bank, that each bank open an Islamic
Banking Division. So through technology, Structure should be Change and affect the NBP
Structure.

SOCIAL RESPONSIBILITY OF THE NBP

The Bank has nurtured a strong commitment towards the community. The bank’s sponsorship
and participation in a variety of community activities are clear manifestation of discharging our
responsibility as a good corporate citizen of Pakistan. Our efforts are a reflection of our
commitment to our country and our responsibility to work for its welfare and advancement.
National bank of Pakistan (NBP) is also playing an active role for promoting sports in the
country and sponsored many events during the years.

The main task of our Bank to Awareness of the social responsibility and operate it, being a good
citizen.

EDUCATION

1.1 QARZ-E-HASNA FUND

Qarz-e-Hasna is a fund, which provided to the student for the higher study. Basically when any
students who weak in financially, bank give Qarz-e-Hasna loan and after completion the bachelor

8
or master, they repay the payment in specific time period. In this, there isn’t any type of interest
on the loan. It is the State bank of Pakistan scheme.

The working relating to Qarz-e-Hasna scheme was attended by Pakistan Banking Council (PBC)
since inception. PBC was dissolved in January 1997. In order to fill the void created by the
dissolution of PBC and in order to continue the scheme, SBP decided to entrust all funds and
transfer all record relating to Qarz-e-Hasna scheme for education to the bank with the
instructions to perform all work relating to the fund.

Till January 1997, bank was performing their responsibility in a good manner. It is totally
socially working. Bank has not any interest in this scheme but because bank is care our people
and that’s why, bank practice their responsibility with authentic form.

1.2 STUDENT LOAN

Student loan is not same as Qarz-e-Hasna. It is the scheme of the NBP, Which provide student
loan for those people who have not enough money to admission in the university. It is only apply
on the Government Universities. Bank gives many loans to Karachi university students, or like
Sindh medical college students.

Bank gives student loan to one of the student of Dow medical college, who are less money but
having great knowledge about the course. Same as it is bank give another loan to the NED
university student, who also have high percentage but weak in financially. This is on merit bases.
And student repayments the loan in specify time. This program hoped to encourage talented
students to apply by reaching out to them and providing them an opportunity to pursue a
professional degree at one of Pakistan’s premier academic institutions.

1.3 FEMALE EMPOWERMENT-NBP COMMITMENT

“We Grow and Prosper Together” was the theme of the conference on Female
Empowerment-NBP Commitment, held in Islamabad at a local hotel on 2007. NBP organize
the conference just for the empowerment of women, or specially those who are live in remote
areas. Prime Minister of Pakistan, Mr. Shaukat Aziz, was the Chief Guest and chaired the
inaugural session. NBP welcomed all guest and Prime minister of Pakistan. NBP declined the
key objectives set for the conference:

 Discuss the challenges of Female Empowerment and NBP’s experience of Gender

Sensitive Management.
 To learn from the successful experience of NBP towards female empowerment.
 To evolve cross sectional support for a new paradigm.
 Looking Towards the Future.

Syed Ali Raza (President & Chairman of the bank) highly valued the worth of women’s role in
the economic development and nation building and confirm this a survey was conducted

9
amongst female employees of the bank to gauge, how they feel about taking up challenging
responsibilities. Their response was positive and female employees perception was that they
were underutilized and are ready to take position that are more challenging.

SPORTS
Physical activity is essential for everyone. It Builds self Confidence and can be an excellent
group activity for your family and friends. Exercise is an activity that transcends age. The NBP
sports Complex is at your disposal and we encourage you and your family to utilize the facility.

2.1 A STATE-OF-THE-ART SPORT COMPLEX

Recently, Mohammed mian Soomro, the caretaker prime Minister of Pakistan, performed the
formal inauguration of the National bank of Pakistan (NBP) Sport Complex in Clifton. Sindh
Governor, Dr. Ishrat-ul-Edab khan, provincial minister and Governor of State Bank of Pakistan,
Dr. Shamshad Akhtar have also graced the occasion.

The Caretaker Prime Minister in his inaugural speech had stated that the whole NBP sport
Complex was very well planned and deserved compliments for the architecture that made
optimum use of the space. He also says that Health and sports compliment each other because
healthy minds and bodies are less susceptible to ailments.

So the Bank organizes and develops the sport complex for the sake of society and those people
who are not avail the healthy life.

The NBP chief was of the view that the sports wing of his Bank was the most organized one in the
country. He said the NBP sponsors sports in all parts of the country and provides jobs to sportsmen.

Syed Ali Raza said that to tap the talent, the NBP has been organizing coaching camps for crickets,
hockey and football in various parts of the country at the grassroots level.

2.2 SOCCER

The Pakistan Premier League (PPL) is the first division of Pakistani football. It was established
in 2004, in place of the National Championship by the Pakistan FootBall Federation.

It was a knock-out competition, which remained this way until it was replaced by the Football
League in 2004. Football in Pakistan remained underdeveloped for decades due to
mismanagement, lack of support and corruption. However in August 2003, with the support of
FIFA under their ‘Goal Project’, and new management within the Pakistan Football Federation,
Pakistan restructured the national football system. The National Football Championship was
replaced in 2004 by the national football league, called the National Division. National Bank of

10
Pakistan is Sponsor pakistan premier league in 2004, 2005, 2006, 2007, 2008. NBP want to be
Healthy peoplewho take part in every activity, and watch them the domestic soccer. National
bank of pakistan mostly sponsor the domestic Football league. NBP promote the youngster who
have talented.

2.3 HOCKEY

Pakistan Hockey Federation has named a panel of Technical Officials to conduct All Pakistan
NBP Junior Hockey Cup to be played at the Hockey Club of Pakistan Karachi from November
28 to December 5. The competition will be organized by National Bank of Pakistan.
Gulfraz Ahmed Khan, Honorary Secretary Karachi Hockey Association, will be the Organizing
Secretary of the tournament. The technical briefing meetings will be held by the Tournament
Director on November 2007.

National Bank of Pakistan is great emphasis on Hockey Cup in domestic basis. And NBP
promote the culture of Hockey Matches on Domestic as well as all over the world.

2.4 CRICKET
National Bank of Pakistan (NBP) is Sponsors different Cricket events on Domestic bases. The list of
those events is as follow:

 Inter-Region Under 19 Tournament 2007/08

 Inter-Region Grade II Tournament 2007/08
 Inter-District Under 19 Tournament 2007/08
 PCB National Schools Under-17 Women's Championship 2007/08
 Inter-District Senior Tournament 2007/08

NBP organize through sponsorship to those events and also participate in these events. NBP also
organize or sponsor International Cricket events in Pakistan.

DONATION

3.1 LAYTON REHMATULLAH BENEVOLENT TRUST

LRBT is committed to creating a better Pakistan by preventing the suffering caused by blindness
and other eye ailments. To this end it will provide state of the art comprehensive free eye-care in
keeping with its tradition of excellence, efficiency and compassion for all. LRBT treats 30% of

11
all eye patients visiting OPD & performs 26% of all eye surgeries in Pakistan. LRBT also
conducts 44% of pediatric surgeries in the country.
The Founders wanted that all treatment at LRBT be focused on the poor and be totally free so
that no man, woman or child should become blind just because he or she cannot afford the
treatment. Treatment should be appropriate state of the art. Charity does not mean second-rate.
There should be no discrimination due to gender, caste, ethnicity, language, religion or sect.
Patients should be treated with compassion and dignity. National bank of Pakistan donate amount
every year to year. And take part in the activity of that trust.

3.2 ZINDAGI TRUST

We will be a leader in providing opportunities to a better life through education to the

underprivileged working children of Pakistan

Zindagi (Life) is inspiring. Its inspiration lies in the unique experiences we go through daily.
Some of them are sweet and some bitter. We try to undo the effects of the bitter ones by
either forgetting them or by extending a helping hand to the ones who are suffering. Its
only then that we know how many other hands are there to join in for the cause, its only
then that we realize how many more hands are needed.

or my recordings, I have to go to many strange places. One of them was in the desert. I
was there with my team to shoot the video for “La Ilaha Illallah”. It was an honor for me
to sing the poetry of Iqbal, poetry that talks about the sovereignty of Almighty Allah. During
the filming of the video, I learned things about Thar. The most painful for me was the
vulnerability of Thar’s children to poverty, malnutrition and poor health. I saw innocent and
beautiful children drinking contaminated water from a well where birds and animals were
lying dead. I couldn’t believe my eyes. I couldn’t take this image out of my mind. I wanted
to help them.

Children are the most beautiful part of all societies. They are the builders of a nation’s
future. Their positive energies and combined strength promise future growth, stability and
progress in a country. Ignoring children is ignoring our future.
National bank of Pakistan (NBP) also donates 1,000,000 rupees to Zindagi trust every year.

3.3 AUJ INTERNATIONAL

Auj International, Karachi is a General Magazine and covers various matters of public interest
like interviews of prominent personalities, scientific features, educational survey, etc. They wish
to cover a number of other aspects of the Society. A donation of Rs. 200,000/- was approved by
the banks management to the above magazine which was ratified by the Board of Director.
National bank also donates various amount of money in the different events which organize by
Auj international.

3.4 SHADE ORGANIZATION

Dedicated to eradicating melanoma through the education of children and the community in the
prevention and detection of skin cancer and the promotion of sun safety. A donation of Rs.

12
50,000/- was made in the name of “Shade Organization” for arranging matrimonial ceremony for
destitute/orphan girls at Sialkot. National bank donates with open hearted.

3.5 TAALEEM FOR ALL TRUST

Taaleem for All Trust is an initiative to address the dismal state of education in Pakistan, aimed
specifically towards accelerating the spread of primary education in Pakistan through the concept
of non-formal schooling. The Trust has a very wide scope of activities that comprises of a
comprehensive campaign for social improvement through public awareness. National Bank of
Pakistan Donate some amount to Taaleem trust for the social welfare.

3.6 INSTITUTE OF TECHNOLOGY PAKISTAN AERONAUTICAL

A donation of Rs. 499,600/- was made to institute of technology Pakistan Aeronautical Complex,
karma for purchase of 5p-IV computers and 2 printers with the approval of the operations
committee which was subsequently ratified by the Board of Director.

PRESIDENT RELIEF FUND FOR EARTHQUAKE VICITIMS – 2005

On 8 October 2005, an Earthquake is come in the northern area of Pakistan. And all Pakistani are
going in to shock of the big damage in Pakistan. All over the Pakistan people help these effected
people. The National Bank of Pakistan (NBP) has announced a relief package for the earthquake
victims. The Bank has donated Rs. 35 million to President’s Relief Fund for Earthquake
Victims - 2005. The employees of the Bank have also voluntary donated one-day’s basic salary to
the Fund.

NBP has initiated the process of formation of Special Teams at local level for providing on the
spot financial and other aid in earthquake-affected areas. Special arrangements have made for
collection of donations at all domestic and overseas branches.

An “Emergency Relief Committee” has been formed which is empowered to provide immediate
relief in terms of blankets / tents / food / medicines for the NBP employees and their dependents
affected by the earthquake.

For providing relief to the people in the wake of recent Earthquake in Pakistan and to mobilize
resources and proactively rendering a helping hand in the relief efforts to the people affected by
the Earthquake all branches of National Bank of Pakistan have opened account of
“PRESIDENT’S RELIEF FUND FOR EARTHQUAKE VICTIMS - 2005” and payments
into the aforesaid fund are accepted by issuing receipts duly signed by Branch Officials, as per
prescribed format.

13
 NON-PROFITABLE BRANCHES
In Remote Villages national bank of Pakistan perform their service in well mannered form. And
doing working hard for the benefit of the people who live at their. But in some villages because
there are no more people living their, that is why NBP have no Profit on those branches.
Basically NBP perform their service for the sake of those people who live their and NBP want to
upgrade those villages to the city life.

PENSION PLAN

National Bank of Pakistan is only bank who pay their pension on monthly bases and take no
profit. Basically pension is the obligation of State bank of Pakistan, but SBP give the duty to
NBP, is to pay the Pension to the retired government employees on every month.

CONCLUSION

In my point of view, the social responsibility that bank do are “Proactive Approach”. And the
thing which I like it very much is the Donations. Bank gives Donation in very big amount and
Support all the events indirectly. Because of the Only Government bank with wide range of
network bank operate the pension to the all retired government employees. This is the good
thing. Basically National bank of Pakistan wants to awareness of Social responsibility in the
society and also wants a wealthy nation. That is why we call it “THE NATIONS BANK”. The
Sport facility provided bank to the society is very pro-active, and NBP sponsor small and big
events of the sports. Since the creation NBP organize more 10,000 matches of the cricket in the
Domestic or International bases. And Still NBP sponsor the Football Premier league in the
domestic soccer.

14