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National bank of Pakistan
Summary Report
Banking Industry
Danish Ali Zaidi(CEO)
Ateeq-ur-Rehman
Haris Hoorani
Asad Raza
Kamran Malik
Ovais Baig


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INTRODUCTION
Aims
Enlightenment of students
Outcome:
To introduce the class with the
prospects of NBP strategic
policies and its fallacies.
To give brief overview of the
report that weve submitted to
the honorable teacher
Purpose of
this
presentation
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Our Agenda
NBP Overview
History
Quick facts
Hierarchy
Vision/mission/goals
SWOT analysis
Matrices
Evaluation
Recommendation


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NBP Overview
National bank is the oldest bank of
Pakistan
It has the widest spread
I came into bieng in 1949
Caters to all classes of costumers
And even acts as agent of the state
where there is no state bank
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HISTORY
Established as Government Owned
Bank In 1949
Initial branches were in East Pakistan
This was followed by branches in
Karachi and Lahore.
It is currently the one of the most
established and profitable financial
institute that has been leading the
nation prosperity since its coming
into being

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Quick Facts
Type Government
KSE: NBP
1,000,000,000 shares of Rs 10 each with 76.6 %
government owned
Founded 1949 Headquarters Principal Office,
Karachi Pakistan Key people
industry = Banking
Capital Markets Products Loans, Credit Cards,
Savings, Consumer Banking etc.
Revenue PKR 50.569 billion (US$ 815.6 million)
(2007)
Net income PKR 19.034 billion (US$ 307 million)
(2007)

Continued.
Domestic Branch 1280 Branches
Islamic Banking 8 Branches
Online Branch 1216 Branch (es)
Overseas Branch 23 Branch (es) 10 Regional /
Representative Office(s)
Swift Branch 13 Branches
6 Customer Facilitation Center(s)
1 international subsidies and 7 Local subsidies
NBP Owned ATMs 125
Outsourced 136
Total ATMs 261

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Continued
National Bank of Pakistan Awarded Best
Emerging Markets Bank 2011
Awarded By Global Finance Magazine

Bank of the Year awarded for the year 2010 by
the world renowned The Banker magazine
owned by the Financial Times Group, London
Owner(s) Government of Pakistan
Website www.nbp.com.pk

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Organizational Hierarchy
Chart
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President
BOD
Member Executive
board
Regional Chief
Zonal Chief
Branch Manager
Vision Statement
To be recognized as a leader and a
brand synonymous with trust,
highest standards of service quality,
international best practices and
social responsibility.
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Mission Statement
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
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Goals
To enhance profitability
and maximization of
NBP share through
increasing leverage of
existing customer base and
diversified range of
products.
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STRENGTH
Strong financial rating
Alternate duties in SBP absence
Employee Benefits
Healthy environment
Experienced Management
Specialized training for employees
Extensive branch network
Wide range of products
Customer loyalty and trust



WEAKNESSES
Politically influenced HR department
Lack of marketing efforts
inefficient counter services in rush hours
favoritism and nepotism
Lack of standardized performance evaluation and
hiring system
Political pressures because of being a public sector
bank
Limited support for innovation and creativity
Weak customer service
Limited technological advancement
Opportunities
Growing banking industry
Increasing inflation
increasing GDP
Government backing
Increase in economics activities
Expansion of International Coverage
Emerging technologies (e-commerce)
Trends in housing, shopping, careers, business
Religious acceptance of banks
THREATS
Increase in no. of banks
Online Banking
international investment in private sectors
increased banking hours
Modern type of banking
Highly skilled people and management required
The whole structure change
Government policy
imf Policies
SWOT
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EFE matrix

Sr No Oppourtunities Weight Rating W. score
1 Growing banking industry 0.08 4 0.32
2 Increasing inflation 0.05 3 0.15
3 increaing GDP 0.07 3 0.21
4 Government backing 0.085 4 0.34
5 Increase in economics activities 0.02 4 0.08
6 Expansion of International Coverage 0.06 3 0.18
7 Emerging technologies (e-commerce) 0.09 3 0.27
8 Trends in housing, shopping, careers, business 0.1 4 0.4
9 Religious acceptance of banks 0.015 3 0.045
External Threats
10 Increase in no. of banks 0.05 3 0.15
11 Online Banking 0.06 2 0.12
12 intrernational investment in private sectors 0.01 3 0.03
13 increased banking hours 0.05 3 0.15
14 Modren type of banking 0.025 2 0.05
15 Highly skilled people and management required 0.03 2 0.06
16 The whole structure change 0.025 2 0.05
17 Government policy 0.08 2 0.16
18 imf Policies 0.1 4 0.4
Total 1 3.165
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IFE matrix
Sr.No Internal Strength Weight Rating
Weighted
Score
1 Strong financial rating 0.08 4 0.32
2 Alternate duties in SBP absence 0.08 4 0.32
3 Employee Benefits 0.06 3 0.18
4 Healthy environment 0.04 3 0.12
5 Experienced Management 0.1 4 0.4
6 Specialized training for employees 0.05 3 0.15
7 Extensive domestic and overseas branch network 0.1 4 0.4
8 Wide range of products and services 0.05 3 0.15
9 Customer loyalty and trust 0.07 4 0.28

Internal weakness
10 Politically influenced HR department 0.05 1 0.05
11 Lack of marketing efforts 0.02 2 0.04
12 inefficient counter services in rush hours 0.06 1 0.06
13 favoritism and nepotism 0.05 2 0.1
14 Lack of standardized performance evaluation and hiring system 0.05 2 0.1
15 Political pressures because of being a public sector bank 0.05 2 0.1
16 Limited support for innovation and creativity 0.02 2 0.04
17 Weak customer service 0.02 2 0.04
18 Limited technological advancement 0.05 2 0.1

Total 1 2.95
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CPM
HBL MCB
Sr # Critical Success Factor weight Rating W. Score Rating W. Score
1 Market share 0.15 4 0.6 3 0.45
2 Total Asset 0.1 3 0.3 2 0.2
3 Financial Rating 0.09 3 0.27 3 0.27
4 Product Quality 0.08 2 0.16 3 0.24
5 Customer Loyalty 0.05 2 0.1 3 0.15
6 Expansion 0.08 1 0.08 2 0.16
7 organizational Structure 0.05 3 0.15 3 0.15
8 E- Commerce 0.05 2 0.1 3 0.15
9 Online Branches 0.2 4 0.8 3 0.6
10 Management Experience 0.05 3 0.15 2 0.1
11 Costumer Services 0.1 2 0.2 3 0.3
Total 1 2.91 2.77
17
fds


Government TDRs
I SLAMI C BANKI NG
CASH CARD NBP I NVESTOR
CASH N Gold ADNAVCE
PAK REMI TT




AMDANI PROTECTI ON
PREMI UM SAVER SHEI LD
KI SAN TAQAT SAI BAAN
KI SAN DOST ADV. SALARY
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Evaluation
IFE score of 2.95 shows that
strategies made by Bank Officials are
implemented and giving the results as
management desire.
This score shows that with some
weakness, bank has to make some
advancement, especially in
technology sector.
NBP AAA rating in medium and long
term banking

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Continued
Political influence in bank is a big
set back
Govt. support is there for NBP but
too much interest of Govt. is
unethical
Bank should grow more because
there is still huge vacant space in
banking sector that can be utilized
by bank, increasing market share
and render its services to the public.

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In order to grow in the market relative or
unrelated highly skilled management is required
that can plan and able to implement that plan
efficiently and effectively.
In order to lead in this environment IMF policies
should not be follow. And the whole structure
should be change.
The Bank has intensely undergone market
penetration strategy and are spread far and
wide across the nation.
The bank due to lack of intensity lately has
been undergoing huge impairment losses
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The Bank has a weakly following product
development strategies which they need to work
harder on
The Bank has undergone related diversification
by launching Islamic banking counter.
The Bank has extremely low Cost of fund of
7.18 %that is a very positive.
The Bank has a huge NPL percentage of approx
35% that should be addressed.
A big liquidity ratio means the bank has great
opportunity to exploit interbank lending

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