rubab report

7/29/2019 Rubab Report

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TypeGovernment

Listed on

KSE&LSE

NBP

Founded 1949 Headquarters Principal Office, Karachi Pakistan

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)

Owner(s)

Government of Pakistan

Website

www.nbp.com.pk

SUBSIDIARIES Taurus Securities Ltd NBP Exchange Company Ltd NBP Capital Ltd NBP Modaraba Management Company

Ltd

CJSC Bank Almaty, Kazakhstan

VENTURES United National Bank (UK) First Investment Bank NAFA (an Asset Management

Company (a joint venture with NIBBank & Fullerton Fund Management ofSingapore)
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://www.nbp.com.pk/http://www.nbp.com.pk/http://en.wikipedia.org/wiki/File:National_Bank_logo.jpghttp://en.wikipedia.org/wiki/File:National_Bank_logo.jpghttp://en.wikipedia.org/wiki/File:National_Bank_logo.jpghttp://www.nbp.com.pk/http://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pakistani_rupeehttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Types_of_business_entity


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Timeline

1949 National Bank of Pakistan (NBP) was established under the National Bank ofPakistan Ordinance of 1949 and was government-owned. NBP acted as an agent of thecentral bank wherever the State Bank did not have its own branch. It also undertook

government treasury operations. Its first branches were in jute growing areas in EastPakistan. Offices in Karachi and Lahore followed. 1950 NBP established a branch in Jeddah, Saudi Arabia. 1955 By this time NBP had branches in London and Calcutta. 1957 NBP established a branch in Baghdad, Iraq. 1962 NBP established a branch in Dar es Salaam, Tanganyika. 1964 The Iraqi government nationalized NBP's Baghdadbranch. 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities

between India and Pakistan. 1967 The Tanzanian government nationalized the Dar es Salaambranch. 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong.

At separation of East Pakistan NBP lost its branches there. NBP merged with EasternMercantile Bankand with Eastern Bank Corporation. 1974 The government of Pakistan nationalized NBP. As part of the concomitant

consolidation of the banking sector, NBP acquired Bank of Bahawalpur. 1977 NBP opened an offshore brain Cairo. 1994 NBP amalgamated Mehran Bank. 1997 NBP branch in Ashgabat, Turkmenistan commenced operations. 2000 NBP opened a representative office in Almaty, Kazakhstan. 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks

to operate in the UK. NBP and United Bank agreed to merge their operations to formPakistan International Bank, of which NBP would own 45% and United Bank55%.

2002 Pakistan International Bank renamed itself United National Bank Limited (UNB).The ownership structure of the UNB remained as before. The only change to theshareholding structure is that UNB had recently been privatized in Pakistan and was nowowned 49% by the Government of Pakistan and 51% by a joint foreign consortium ofAbu Dhabi.

2003 NBP opened its branch in Kabul, and the first ATM in Afghanistan was installedthere.

2005 NBP closed its offshore branch in Cairo. 2010 NBP opened its branch in Karaganda (Kazakhstan).

Islamic banking

First Islamic banking branch of NBP started its operations in Karachi on December 15,2006.

Two more branches started operations by the end of 2007 in Peshawar and Lahore. At present, eight Islamic banking branches are functional all over Pakistan having Group

office at Karachi, Pakistan. Mr. Shafiq Khan is newly appointed Group Chief of the Islamic Banking Group. Mufti Abdul Sattar Laghari is a Shariah Advisor.
http://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Jutehttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Jeddahhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/Dar_es_Salaamhttp://en.wikipedia.org/wiki/Tanganyikahttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Dar_es_Salaamhttp://en.wikipedia.org/wiki/Bank_of_Chinahttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Chittagonghttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/w/index.php?title=Eastern_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Eastern_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Eastern_Bank_Corporationhttp://en.wikipedia.org/w/index.php?title=Bank_of_Bahawalpur&action=edit&redlink=1http://en.wikipedia.org/wiki/Cairohttp://en.wikipedia.org/w/index.php?title=Mehran_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Ashgabathttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/United_Bankhttp://en.wikipedia.org/wiki/United_Bankhttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Cairohttp://en.wikipedia.org/wiki/Cairohttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/United_Bankhttp://en.wikipedia.org/wiki/United_Bankhttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/Ashgabathttp://en.wikipedia.org/w/index.php?title=Mehran_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Cairohttp://en.wikipedia.org/w/index.php?title=Bank_of_Bahawalpur&action=edit&redlink=1http://en.wikipedia.org/wiki/Eastern_Bank_Corporationhttp://en.wikipedia.org/w/index.php?title=Eastern_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Eastern_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/Chittagonghttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Bank_of_Chinahttp://en.wikipedia.org/wiki/Dar_es_Salaamhttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Tanganyikahttp://en.wikipedia.org/wiki/Dar_es_Salaamhttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Jeddahhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/Jutehttp://en.wikipedia.org/wiki/Central_bank


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Mr. Sarfaraz Ahmed is Business Head. Mr. Syed Muhammad Shahid is Operations Coordinator and Master Trainer for HR. Mr. Muffaz-ul-Ahad Rana is a Govt.Collection Officer at IBB-Karachi - He has an

Engineering degree from FAST-NU, MBA in Finance from SZABIST and NIBAF inIBCC from State Bank of Pakistan.

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 bestinternational management practices, Maximizing

stakeholders value, Discharging our responsibility as a

good corporate citizen of Pakistan and in countries

where we operate

To be recognized as a leader and a brandsynonymous with trust, highest standards oservice quality, international best practices andsocial responsibility.


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To enhance profitability and maximizationof NBP share through increasing leverage of existingcustomer base and diversified range of products.

Highest standards of Integrity Institutionalizing team work and performanceculture

Excellence in service Advancement of skills for tomorrows

challenges Awareness of social and community

responsibility Value creation for all stakeholders

Branch Introduction

Branch City & Code Chest Branch Office Layyah, Pakistan

Main Branch 0358

Key People Branch manager:M.ASLAM KHAN.

Operations manager:KHIZAR HAYAT KHAN.

Cashier:MUREED KAZIM.Customer Service:IFTIKHAR SHAH.

Sub-ordinate Branches Choubarah

Karor Laleisan

Chowk Azam


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Management And Organization Of Bank

PRESIDENT

EXECUTIVE VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICER GRADE I

OFFICER GRADE 2

OFFICER GRADE 3

MESSENGER

PEON

SWEEPER

BRANCHH

IERARCHY

SENIOR VICE PRESIDENT

MEMBER BOARD

SENIOR EXECTIVE VICE-PRESIDENT


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OBJECTIVES OF STUDYING THE ORGANIZATIONThe primary purpose of this study is to fulfillment of the requirements for the degree of MBA(Finance).For this connection each student of this particular course is required to undertaketraining in a relevant organization selected by them, for a period of 6-8 weeks.

The secondary purpose of this internship is to understand how the theoretical knowledge can beapplied to the practical situations and examine an organizations financial issues and identify its

opportunities/ problems and also suggest corrective measures. This internship is also verynecessary to gain confidence and become aware of the mechanism of an organization. As aninternee I want to achieve following objectives during my internship and organization study:

1. To familiarize with a business organization.2. To familiarize with the different departments in the organization and their functioning.3. To enable myself to understand how the key business process are carried out in

organization.4. To understand how information is used in an organization for decision making at various

levels.5. To relate theory with practice.6. I was also keen to gain professional experience in an actual testing environment.7. I want to develop my skills in the application of theory to practical work situations.8. To develop my attitude conducive to effective interpersonal relationships.9. To acquire good work habits and sense of responsibility.10.To enhance my learning experience by application of fundamental concepts previously

learned.

11.To observe, analyze and interpret the relevant data competently and in a useful manner.12.To develop my interpersonal communication.13.I want to enhance my knowledge of the discipline of banking administration.


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SWOT ANALYSIS

SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats

SWOT analysis is careful evaluation of an organizations internal strengths and weakness as well

as its environment opportunities and threats.

SWOT analysis is a situational which includes strengths, weaknesses, opportunities and threats that

affect organizational performance.

The overall evaluation of a company strengths, weaknesses, opportunities and threats is called SWOT

analysis.

In SWOT analysis the best strategies accomplish an organizations mission by:

1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.

3. Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using the organization

mission as a context, managers assess internal strengths distinctive competencies and weakness

and external opportunities and threats. The goal is to then develop good strategies and exploit

opportunities and strengths neutralize threats and avoid weaknesses.

STRENGTHS:

OLDEST INSTITUTION ALTERNATE DUTIES IN SBP ABSENCE MORE DEPOSITS THAN OTHER BANK EMPLOYEE BENEFITS BROAD NETWORK STRICTLY FOLLOWED RULES

&REGULATION

PROFESSIONAL COMPETENCE HEALTHY ENVIROMNMENT RELATION BETWEEN STAFF AND OTHER

EMPLOYESS

WEAKNESSES: LACK OF MARKETING EFFORT NBP UNDER POLITICAL PRESSURE FAVORITISM AND NEPOTISM LACK OF FINACIAL PRODUCT INEFFICIENT COUNTER SERVICES IN THE

RUSH HOURS

LACK OF COMPUTERIZED NETWORK LACK OF MODERN EQUIPMENT UNEVEN WORK DISTIBUTION


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OPPORTUNITIES: ELECTRONIC BANKING MICRO FINANCING

THREATS:

EMERGENCE OF NEW COMPETITORS

POLITICAL PRESSURE BY ELECTEDGOVERNMENT

DOWNSIZING CUSTOMERS COMPLAINTS

STRENGTHS:

OLDEST INSTITUTION

NBP in one of the oldest bank of Pakistan and first nationalized bank Hence its customer base isstrength from this plus point as customers have more confidence in the bank. The additionalvalue services as the privilege for the bank.

ALTERNATE DUTIES IN SBP ABSENCE

The NBP performs additional services for its customers as well as the other bank customer in theabsence of SBP.

MORE DEPOSITS THAN OTHER BANK

NBP has the relative competence in having more deposits than the other bank. This is because ofthe confidence the customer have in the bank. The bank being the privileged and oldest bank inbanking sector of Pakistan enjoys this edge over all others, lacking it.

EMPLOYEE BENEFITS

The employers at NBP are offered reasonable monetary benefit. Normally two bonuses are givenEid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bankand a source of motivation for the employees.

BROAD NETWORK

The bank has another competency i.e. it has broad-basses network of branches throughout thecountry also more than one branch in high productive cities. The customers are provided servicesat their nearest possible place to confirm customer satisfied.

STRICTLY FOLLOWED RULES &REGULATION


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The employees at NBP are strict followers of rule & regulation imposed by bank. The disciplinedenvironment at NBP bolsters its image and also enhances the over all out put of the organization.

PROFESSIONAL COMPETENCE

The employees at NBP here have a good hold on their descriptions, as they are highly skilledProfessionals with back ground in business administration, banking, economics etc. Theseprofessional competencies enable the employees to understand and perform the function andoperation in better way.

HEALTHY ENVIROMNMENT

The working condition in the NBP branch here is very conductive and favorable for betteroutput. The informal environment affects the performance of the employees in a positive way.

RELATION BETWEEN STAFF AND OTHER EMPLOYESS

The bank enjoys a good plus point when it comes to the employee manager relationship thehearing as removing of discrepancies if any, between the employees, and between the managerand employees.

WEAKNESSES

LACK OF MARKETING EFFORT

The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks

far behind in marketing effort .A need for aggressive marketing in there in the era marketing in

now becoming a part of every organization.

NBP UNDER POLITICAL PRESSURE

The strong political hold of some parties and government and their dominance is affecting the

bank in a negative way. They sometime have to provide loan under the pressure, which leads to

uneven and adjusted feeling in the bank employees.

FAVORITISM AND NEPOTISM

The promotions and bonuses etc in the bank are often powered by seniors favoritism or depends

upon their wills and decision. This adds to the negative factors, which denominate the employees

thus resulting in affecting their performance negatively.


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LACK OF FINACIAL PRODUCT

The bank falls far behind when the innovative and new schemes are considered. It has not been

involved in the tug of war between the competitors to the accounts and strengthens the existing

customer base. This stands out to be the major incompetence and weakness of the banks.

INEFFICIENT COUNTER SERVICES IN THE RUSH HOURS

During the rush hours, the bank is founded out to be a total flop to handle the mob of people

peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours

where the people find them services entangled in a situation of nowhere because they are not

well served.

LACK OF COMPUTERIZED NETWORK

The bank lack the strength of being powered by the network of computers, which have saved

time, energy and would have lessened the mental stress, the employees have currently. This

would add to the strength if it were powered by network of computers.

LACK OF MODERN EQUIPMENT

The bank lacks the modern Equipment that is not counting machine computers. Even if there is

any equipment they lack to fall in the criteria of being rearmed as update and upgraded

UNEVEN WORK DISTIBUTION

The workload in NBP is not evenly distributed and the workload tends to be more on some

employees while others abscond away from their responsibilities, which server as a demotivation

factor for employees performing above average work.

OPPORTUNITIES

ELECTRONIC BANKING

The world today has become a global village because of advancement in the technologies,

especially in communication sector. More emphasis is now given to avail the modern

technologies to better the performances. NBP can utilize the electronic banking opportunity to

ensure on line banking 24 hours a day. This would give a competitive edge over others.


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MICRO FINANCING

Because of the need for micro financing in the market, there are lot of opportunities in this

regard. Other banks have already initiated, now the time has arrived when the NBP must realize

it and take on step to cater an ongoing demand.

THREATS

EMERGENCE OF NEW COMPETITORS

The bank is facing threats with the emergence of new competitors especially in terms of foreign

banks. These foreign banks are equipped with heavy financial power with excellent and

innovative ways of promoting and performing their services. The bank has to take initiative in

this regard or will find itself far back in competition.

POLITICAL PRESSURE BY ELECTED GOVERNMENT

The ongoing shift in power in political arena in the country effects the performance of the bank

has to forward loans to politically powerful persons which create a sense of insecurity and de-

moralization in the customer as well as employees.

DOWNSIZING

The bank is currently acting upon the policy of downsizing which threaten the environment of

the bank Employees feel insecurity in doing their jobs and work, hence affecting the over all

performance of employees negatively.

CUSTOMERS COMPLAINTS

There exists no regular and specific system of the removal of customer complaints. Now a day a

need for total customer satisfaction is emerging and in their demanding consequences customer's

complaints are ignored


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PEST ANALYSIS

POLITICAL

PRIVATIZATION POLICY AND DEREGULATIONIMPACT OF SUBSIDIZED CREDIT AFFECTING

AND NCBS

EMPLOYMENT PRACTICES, UNIONS,ASSOCIATION

POLITICAL INTERFERENCE ANDHARASSMENT

INCIDENTS OF HIGH TAXATION ON BANKINGINDUSTRY

ECONOMICAL:

CONSTRAINTS IN MOBILIZATION OF PUBLICSAVINGS BECAUSE OF INFLATION

STAFF COSTOPERATING COSTBAD DEBTS

SOCIAL & CULTURAL:

INADEQUATE HUMAN RESOURCESCULTURAL STRAIN TO SAVINGSDEFAULTERS LOBBYDECLINING EDUCATION AND WORK ETHICSINADEQUATE ACCOUNTABILITYADEQUATE EMPOWERMENT

TECHNICAL:

INADEQUATE COMMUNICATIONINFRASTRUCTURE

INADEQUATE COMPUTER FACILITIESINADEQUATE IT TRAINING

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