CHAPTER 3
3.1 VISION:
To be the pre-eminent financial institution in Pakistan and achieve market
recognition both in the quality and delivery of service as well as the range of
product offering
3.2 THE HISTORY OF NBP (1996 TO ON WARDS)
Like all business in Pakistan, National Bank of Pakistan was also put under a great pressure in this period when the biggest bank of the country faced losses Government of Pakistan also made some
reform in this time. The Pakistan Banking council was demolished and all banks were put under independent boards of governors, default of loans in the big issue since that time in 1996-97/the government of Pakistan pressurized all the institutions of the country to downsize their staff and merging the various small branch in to nearest big branches, so as to cut down the expenses. IMF demanded this, as a result of golden hand shake scheme was offered to employees of bank under which 10800 employees were removed in 1996-2000.In 2002 most of the branches were merged in
to the biggest branches to cut down the cost and expenses.
This decision created a lot of cost that was then amortized. In the second phase of the cost reduction program, the numbers of branches were reduced by a figure of 105 that included all the branches that were making losses.
The decision of May 28,1998 blasts followed by a political decision of freezing of foreign currency accounts also created a hard time for NBP. But stills performed well in such difficult conditions and succeeded in the increase of deposits and also collected a reasonable amount of money from the defaulters. This situation will become worst by the economic crises in East Asian countries but again National Bank of Pakistan performed well in that area and maintained its credibility in these areas.
National Bank of Pakistan also introduced A'EJ'VI quick draw cash card system and it also became a member of stuff in New Year. It also prepared a plan for electronic banking and e-commerce. By seeing all the improvement we can say that the officials and directors of the bank are well aware of all the necessary steps for its modernization.
3.3 ESTABLISHMENT OF NBP
The NBP ordinance was promulgated on 20thNov 1949 the bank was opened at Karachi and Lahore in West Pakistan under the provisions of the Bank ordinance; however, it was only permitted in. the first instance to undertake the business of the financing jute, cotton and other agriculture commodities. Through this power could be extended with the prior approval of the central government in order to obtain funds necessary for the finance of the jute trade. Central government permission was obtained for the acceptance of fixed deposits in sum of not less than Rs. 100000 and the arrangement of inter bank call loan from scheduled banks in sum of less than Rs. 2500000. In the initial stage the NBP borrowed from central, but later, considerable funds were obtained by fixed deposits and inter bank call loans. For reasons already mentioned, the bank initially was concerned with the financing of jute trade. In East Pakistan where the jute is grown, large sum of money was advanced to jute merchants, who were appointed agents of the jute board. In the co-operation of which the bank assisted in stabilizing jute prices.
3.4 INCORPORATION OF THE CAPITAL OF NBP
1. After the commencement of the ordinance, there shall be constituted the accordance with provision of the ordinance "that to be called NBP" to carryon the business of banking.
2. The bank shall be a body corporate having perpetual secession and a common seal, shall buy the said name sue, and be sued.
National Bank of Pakistan maintains its position as Pakistan' premier bank determined to set higher standards of achievements. It is the major business partner for the Government
NATIONAL BANK OF PASKISTAN
MAIN BRANCH MANSEHRA
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.
We aim to be an organization that is founded on...
Growth through creation of sustainable relationships with our customers.
Ø Prudence to guide our business conduct.
Ø A national presence with a history of contribution to
our communities.
We shall work to...
Ø Meet expectations through Market-based solutions
and products.
Ø Reward entrepreneurial efforts.
Ø Create value for all stakeholders.
We aim to be people who...
Ø Care about relationships.
Ø lead through the strength of our commitment and willingness to excel.
Ø Practice integrity, honesty and hard work. We believe that these are measures of true success.
We have confidence that tomorrow we will be...
Ø Leaders in our industry.
Ø Maintaining the trust of stakeholders.
An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment.
3.6 PRESIDENT MESSAGE
It gives me great pleasure to announce that National Bank of Pakistan is gearing up to the challenges faced by the domestic banking industry due to innovations and advances in the international banking world, which is the consequence of globalization.
The bank wishes to effectively utilize the financial assistance being extended by the Government of Pakistan for banking sector reforms aimed at reducing operating costs and improving profitability.
National Bank of Pakistan is distinct from other banks in that it has a nonprofit and service oriented motive, which has manifested itself in the area of salary deposits of government employees and payment of utility bills. The bank renders both of these services across the country reaching as far as the remotest regions; from our northern borders to the Arabian Sea. These services do not contribute towards the earnings of the bank; rather they put pressure on our resources. Nevertheless, we are committed to serving small savers and the general public of the country. National Bank is everyone's and does not only serve corporate customers.
By extending and targeting our research to improve bank earnings, through customer focus of our commercial and corporate branches, and by enhanced efforts towards the development of human capital, we shall very soon transform the bank from a bureaucratic organization to a fast paced, modern, and competitive bank.
In conclusion, I firmly believe that we have the vision, which will enable us to achieve even better results, safeguard the interest of our customers and to assist us in our march towards progress and prosperity in future.
S.Ali Chairman & President
3.7 NBP ORGANIZATION CHART
As stated before, a Board of Directors consisting of one President, 4 directors from NBP one from Pakistan Banking Council, one from Ministry of Finance and an additional one who is the secretary of the board manages NBP. Hence the board of directors is an 8member team, which manages the overall operations of the bank.
Under the board of directors is the executives committee consisting of 7 members including the president/chairman of NBP and the Secretary. These members of the
Executive Committee, except Secretary, are in-charge of many divisions, These members are all Senior Executive Vice Presidents (SEVP). There are 20 divisions, which have their own heads who are Senior Executive Vice Presidents (SEVP), Executive Vice Presidents (SVP) or Senior Vice Presidents (SVP). The SVEP of international division manages the overseas filed operations.
Every province has a Provincial Chief, usually an SEVP, who overlooks the operations of NBP in that particular province. Under the provincial chief is the General TV tanagers who is either EVP or SVP. The general managers are responsible for either a number of regional areas or in-charge of various provincial departments such as Administration, Recovery, General inspection, Loan etc. Thenul11beY of general managers depends upon the complexity and extensiveness of the field operations in the province. Below the general manager are the circle executives who are senior vice president (SVP) or Vice-Presidents (VP).
The circle executives are in-charge of geographical circle areas such as Islamabad circle, Peshawar North circle etc. In each circle area, there are a number of zones such as Peshawar Cantt Zone etc. There is Zonal Head for every Zone who is a Vice
President (VP) or Additional Assistant Vice President (AVP).
In each Zone, there are a number of bank branches, which are managed by branch managers who are Grade-1or 2 officers. In each branch, in turn, there are a number of graded officers and non-graded employees (e.g. peon and gunman).
3.1 VISION:
To be the pre-eminent financial institution in Pakistan and achieve market
recognition both in the quality and delivery of service as well as the range of
product offering
3.2 THE HISTORY OF NBP (1996 TO ON WARDS)
Like all business in Pakistan, National Bank of Pakistan was also put under a great pressure in this period when the biggest bank of the country faced losses Government of Pakistan also made some
reform in this time. The Pakistan Banking council was demolished and all banks were put under independent boards of governors, default of loans in the big issue since that time in 1996-97/the government of Pakistan pressurized all the institutions of the country to downsize their staff and merging the various small branch in to nearest big branches, so as to cut down the expenses. IMF demanded this, as a result of golden hand shake scheme was offered to employees of bank under which 10800 employees were removed in 1996-2000.In 2002 most of the branches were merged in
to the biggest branches to cut down the cost and expenses.
This decision created a lot of cost that was then amortized. In the second phase of the cost reduction program, the numbers of branches were reduced by a figure of 105 that included all the branches that were making losses.
The decision of May 28,1998 blasts followed by a political decision of freezing of foreign currency accounts also created a hard time for NBP. But stills performed well in such difficult conditions and succeeded in the increase of deposits and also collected a reasonable amount of money from the defaulters. This situation will become worst by the economic crises in East Asian countries but again National Bank of Pakistan performed well in that area and maintained its credibility in these areas.
National Bank of Pakistan also introduced A'EJ'VI quick draw cash card system and it also became a member of stuff in New Year. It also prepared a plan for electronic banking and e-commerce. By seeing all the improvement we can say that the officials and directors of the bank are well aware of all the necessary steps for its modernization.
3.3 ESTABLISHMENT OF NBP
The NBP ordinance was promulgated on 20thNov 1949 the bank was opened at Karachi and Lahore in West Pakistan under the provisions of the Bank ordinance; however, it was only permitted in. the first instance to undertake the business of the financing jute, cotton and other agriculture commodities. Through this power could be extended with the prior approval of the central government in order to obtain funds necessary for the finance of the jute trade. Central government permission was obtained for the acceptance of fixed deposits in sum of not less than Rs. 100000 and the arrangement of inter bank call loan from scheduled banks in sum of less than Rs. 2500000. In the initial stage the NBP borrowed from central, but later, considerable funds were obtained by fixed deposits and inter bank call loans. For reasons already mentioned, the bank initially was concerned with the financing of jute trade. In East Pakistan where the jute is grown, large sum of money was advanced to jute merchants, who were appointed agents of the jute board. In the co-operation of which the bank assisted in stabilizing jute prices.
3.4 INCORPORATION OF THE CAPITAL OF NBP
1. After the commencement of the ordinance, there shall be constituted the accordance with provision of the ordinance "that to be called NBP" to carryon the business of banking.
2. The bank shall be a body corporate having perpetual secession and a common seal, shall buy the said name sue, and be sued.
National Bank of Pakistan maintains its position as Pakistan' premier bank determined to set higher standards of achievements. It is the major business partner for the Government
NATIONAL BANK OF PASKISTAN
MAIN BRANCH MANSEHRA
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.
We aim to be an organization that is founded on...
Growth through creation of sustainable relationships with our customers.
Ø Prudence to guide our business conduct.
Ø A national presence with a history of contribution to
our communities.
We shall work to...
Ø Meet expectations through Market-based solutions
and products.
Ø Reward entrepreneurial efforts.
Ø Create value for all stakeholders.
We aim to be people who...
Ø Care about relationships.
Ø lead through the strength of our commitment and willingness to excel.
Ø Practice integrity, honesty and hard work. We believe that these are measures of true success.
We have confidence that tomorrow we will be...
Ø Leaders in our industry.
Ø Maintaining the trust of stakeholders.
An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment.
3.6 PRESIDENT MESSAGE
It gives me great pleasure to announce that National Bank of Pakistan is gearing up to the challenges faced by the domestic banking industry due to innovations and advances in the international banking world, which is the consequence of globalization.
The bank wishes to effectively utilize the financial assistance being extended by the Government of Pakistan for banking sector reforms aimed at reducing operating costs and improving profitability.
National Bank of Pakistan is distinct from other banks in that it has a nonprofit and service oriented motive, which has manifested itself in the area of salary deposits of government employees and payment of utility bills. The bank renders both of these services across the country reaching as far as the remotest regions; from our northern borders to the Arabian Sea. These services do not contribute towards the earnings of the bank; rather they put pressure on our resources. Nevertheless, we are committed to serving small savers and the general public of the country. National Bank is everyone's and does not only serve corporate customers.
By extending and targeting our research to improve bank earnings, through customer focus of our commercial and corporate branches, and by enhanced efforts towards the development of human capital, we shall very soon transform the bank from a bureaucratic organization to a fast paced, modern, and competitive bank.
In conclusion, I firmly believe that we have the vision, which will enable us to achieve even better results, safeguard the interest of our customers and to assist us in our march towards progress and prosperity in future.
S.Ali Chairman & President
3.7 NBP ORGANIZATION CHART
As stated before, a Board of Directors consisting of one President, 4 directors from NBP one from Pakistan Banking Council, one from Ministry of Finance and an additional one who is the secretary of the board manages NBP. Hence the board of directors is an 8member team, which manages the overall operations of the bank.
Under the board of directors is the executives committee consisting of 7 members including the president/chairman of NBP and the Secretary. These members of the
Executive Committee, except Secretary, are in-charge of many divisions, These members are all Senior Executive Vice Presidents (SEVP). There are 20 divisions, which have their own heads who are Senior Executive Vice Presidents (SEVP), Executive Vice Presidents (SVP) or Senior Vice Presidents (SVP). The SVEP of international division manages the overseas filed operations.
Every province has a Provincial Chief, usually an SEVP, who overlooks the operations of NBP in that particular province. Under the provincial chief is the General TV tanagers who is either EVP or SVP. The general managers are responsible for either a number of regional areas or in-charge of various provincial departments such as Administration, Recovery, General inspection, Loan etc. Thenul11beY of general managers depends upon the complexity and extensiveness of the field operations in the province. Below the general manager are the circle executives who are senior vice president (SVP) or Vice-Presidents (VP).
The circle executives are in-charge of geographical circle areas such as Islamabad circle, Peshawar North circle etc. In each circle area, there are a number of zones such as Peshawar Cantt Zone etc. There is Zonal Head for every Zone who is a Vice
President (VP) or Additional Assistant Vice President (AVP).
In each Zone, there are a number of bank branches, which are managed by branch managers who are Grade-1or 2 officers. In each branch, in turn, there are a number of graded officers and non-graded employees (e.g. peon and gunman).
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