Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1. Executive Summary
Voucher system is used for every transaction. Voucher has to be prepared either
in cash or in transfer or in clearing, the Sheet upon which these vouchers are
summarized transactions-wise and consolidated into a figure is called
supplementary. Remittance department performs following functions (a) Mail
Transfer (MT) (b) Telegraphic transfer (TT) (c) Demand Drafts (DD).
NBP strengths includes its strong organizational culture, best top level
management, strong industrial policies, best research appraisal team, lenient
policy with clients and best quality services. Weaknesses include less attention to
rural development, poor advertisement, poor networking. Main opportunities are
sponsor the IT based projects, Goodwill and better image, growth in industrial
sector. Threats for NBP are political influence and instability, sick projects, lack of
Modern Banking techniques. Problems include lack of information technology,
limited timing of banking services for customers, staff shortage, lack of female
staff for dealing with women, unsatisfied promotion policies, improper standard
for recruitment of clerical staff etc.
VISION
MISSION STATEMENT
CORE VALUES
GOALS
INTRODUCTION
technologically oriented products and services offered through its nation wide
branches.
ESTABLISHMENT
National Bank of Pakistan was established under the National Bank of Pakistan
ordinance 1949 and it came into existence on November 20; 1949.Its main aim
was to provide all types of banking services to the government and private sector.
The bank also handles treasury transactions for the Govt. of Pakistan as agent to
SHARE CAPITAL
Issued Capital
Authorized Capital
Issued, subscribed and paid-up capital in year 2000 was Rs.1.46 Billion.
Corporate Information
Ibrar A. Mumtaz
Tariq Kirmani
Nazrat Bashir
Audit Committee
Tariq Kirmani
Auditors
Chartered Accountants
Chartered Accountants
Legal Advisors
NBP Building
Karachi, Pakistan.
Registrar &
S.M.C.H.S.,Mian Shara-e-Faisal
Karachi, Pakistan.
Website www.nbp.com.pk
Senior Management:
Qamar Hussain :
Chief Operating Officer , Head of Credit & Risk Management Group
Dr. Asif A. Brohi:
SEVP & Group Chief, Operations Group
Shahid Anwar Khan
:SEVP & Group Chief, Overseas Banking Group / Corporate & Investment
Banking Group
Ziaullah Khan:
SEVP & Group Chief Agriculture Finance Group
Dr. Mirza Abrar Baig:
SEVP & Group Chief, Human Resources Management & Administration
Group
Amer Siddiqui:
SEVP & Group Chief, Commercial & Retail Banking Group
Tariq Jamali :
SEVP & Group Chief, Compliance Group
Nadeem A. Ilyas:
SEVP Group Chief, Assets Recovery Group / Corporate & Investment
Banking Group
Muhammad Nusrat Vohra:
SEVP & Group Chief, Treasury Management Group
Khalid Bin Shaheen:
SEVP & Group Chief, Global Home Remittance Management Group
Imam Bakhsh Baloch:
SEVP & Group Chief, Audit & Inspection Group
N. B. Soomro:
SEVP , Special Assignments, President's Secretriate
Agha Fidaullah:
EVP/Group Chief, Special Assets Management Group
Shafique Ahmed Khan:
EVP & Divisional Head, Islamic Banking Division
Ekhlaq Ahmed:
EVP & Secretary Board of Directors
Fazal-ur-Rehman:
EVP & Head P&IR Division, HRM&A Group
Muhammad Hanif:
EVP & Head HR & OD Division, HRM&A Group
Muhammad Iqbal Qasim:
EVP & Head SC & CSR Division, HRM&A Group
Ali Hassan:
Overseas Management:
Zubair Ahmed:
SEVP & Regional Chief Executive, Middle East, Africa &
South Asia Region
R.A. Kaleemi:
SEVP & Chief Representative, Canada Office
M. Rafiq Bengali:
SEVP & Regional Chief Executive, Americas Region
Asif Hassan:
SEVP & Regional Chief Executive, Far East Region
Nausherwan Adil:
SEVP & Regional Chief Executive, Europe Region
Khawar Saeed:
SVP & Regional Chief Executive, Central Asian Republics
Region
Muhammad Hanif Khan:
SVP & Coordinator, Afghan Operations
Management Hierarchy
CHAIRMAN
Board of Directors
Executive Committee
President
Regional Headquarter
Zonal Chiefs
Zones
Branch Managers
Finance Deptt.
Officer
Cash Deptt.
Officer
Admn. Deptt.
Officer
Banking Deptt.
officer
Board of Directors:
In the management of the bank the board of directors is at the top of the controlling
After nationalization in1974 most of the powers have been transferred to the
executive board.
Executive Board:
It is also called the management committee. The general direction and supervision
of the affairs of the bank lies in their respective executive boards. The president,
secretary and 6 other members of the board are appointed by the federal govt.
The president being the chief executive controls the affairs of the bank.
Chief Executive:
The president is the administrative head of the bank. He manages and controls the
affairs of the bank. The president holds the office at the pleasure of the federal
government.
Regional chiefs:
In order to improve the performance of the banking system, the bank has appointed
regional chiefs also. The regional chief has the powers of sanctioning finance and
There are 7 regional head quarters of the regional chiefs of the N.B.P., 1 is in the
Zonal Chiefs:
Each region is divided into number of zones. They hold the post of VP or AVP and
Branch managers:
Each zone is then sub divided into a no. of branches. The control and supervision of
• BRANCH MANAGER
• 2 SECOND OFFICERS
• 2 ASISTANTS
• 2 CASHIERS
• 2 MESSANGERS
• 3-ARMED GUARDS
Deposits are important to the bank as a backbone is to the body of a man. They are
the lifeblood of the bank. National Bank of Pakistan and all other commercial banks
perform the function of deposit accepting from the general public by offering suitable
Branches:
branches. These branches perform their functions under the supervision of local
Local Branches
The bank has a vast network of 1265 branches across the country.
Overseas Branches
France 1
Germany 1
Bahrain 1
Pakistan KEPZ 1
Bangladesh 4
Hong Kong 2
Republic of Korea 1
Japan 2
Afghanistan 4
Turkmenistan 1
Kyrgyzstan 1
Azerbaijan 1
Financial Highlights
1950
Deposits 56
Advances 49
Investments 49
Profit 0.3
No. of branches 17
2009
Deposits 726,465
Advances 475,243
Investments 217,643
Profit 18,212
National bank of Pakistan has its national and development centers and 4 staff
collages at: -
1. Karachi
2. Lahore
3. Peshawar
4. Islamabad
In these centers and staff colleges, the banking training is provided to the officers,
managers, and to potential managers. It arranges courses and seminars for middle
and higher management in all. Each year almost 1500 persons receive training over
there.
1. DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from customers.
Following type of deposits are offered by NBP.
i. Current deposit
v. Call deposit
1. Current Deposits
This type of account is for those persons who want to make small savings.
This type of account is opened with Rs. 100. In this case deposits can be made
only up to a costing amount and with drawls are allowed twice a week. If the
depositors wants to withdraw more than Rs. 15000 a seven days notices is
required before the withdrawal.
These types of accounts are one step towards the Islamisation of Banking
system in the Pakistan. Under such types of accounts the bank allows no interest
to the customers. The executive board of the bank declares profit or loss every
year. PLS saving account having a running minimum credit balance of Rs. 100
would be eligible for sharing profit/loss of the bank. The rate of profit or loss on
PLS saving accounts shall be determined by the bank at the close of each half
year, in its sole discretion and the banks decisions shall be final and binding on
the PLS account holder.
4. Fixed Deposits
5. Call Deposits
Call deposits are the sorts of deposits, which are deposited with the
banker against any tender. This is without interest deposits, this may be with
interest provided the depositor has agreed to keep its amount with the banker for
some fixed period.
This kind of deposit is for a short period. The depositor may withdraw his
deposit at any time by giving seven days notice to the banker. In this type of
deposit facility the trader is allowed to withdraw his amount with interest of the
deposited period.
i. US DOLLAR
a) Pay-in-Slip
When money is to be deposited in the bank the pay in slip is to be filled. The
object of this book is to provide the customer with the bank’s
acknowledgement for receipt of money to be credited his account.
b) Cheque Book
c) Pass Book
The banker may close the account of the customer due to following reasons:
i. Notice by a Customer
v. By order of court
I) NOTICE BY CUSTOMER
The banker closes the account of the customer on the application of the
customer for closing his account.
On death of his customer, the bank must stop payment on cheques drawn
on him by the deceased customer because the death revokes his authority to pay
such cheque. The heirs or the executors of the deceased customer are not
authorized to operate on the account; it can act only in accordance with
provisions mentioned in the letter of probate issued by a competent courts.
V) CUSTOMER INSOLVENCY
Insolvency is civil death therefore, the insolvent adjusting loses his rights
receiver or liquidator as the banker receives the notice of insolvency of the
adjusting, or petition filed for adjusting a filled customer insolvency.
2. CLEARING DEPARTMENT
1. Introduction
2. Clearing House
INTRODUCTION
i. Paying Bank
CLEARING HOUSE
A clearing house is the place where representatives, of all the banks get together
for the purpose of off setting the inter bank indebtedness arising from the transfer
of deposits by a customer of a particular bank to another bank.
The advantages are manifold. It prevents the cost and waste involved in
collection each and every cheque and claim. Which a banker holds against
another, across the counter with all the danger of loss in the transit incumbent
upon it. Great economy is also achieved in the employment of liquid cash by
setting the difference by simpler transfer of credit from one account to another,
there by minimizing the necessity of holding large cash balances, clearing house
works under the control of State Bank of Pakistan.
2. To arrange the payment of cheque drawn on the branch and given for
collection to any other branch of National Bank of Pakistan or any other
members, or sub-members of the local clearing house.
bank. As far as possible, the customer desire that on of the staff member fill in a
slip for him, he should be obliged promptly.
The smaller portion of the perforated pay in slip is handed over to the depositor
and the portion becomes the regular portion of a credit voucher.
a. Transfer Cheques
Transfer cheques are those cheques, which are collected and paid by the
same branch of bank.
Transfer Deliver cheques are those cheques, which are collected and paid
by two different branches of a bank, situated in the same city.
c. Clearing Cheques
Clearing cheques are those cheques in which the payee (Person who deposit
cheques for collection) and the drawer of a cheque maintain the account with
different banks. When the cashier receives the cheques, which are to be
deposited for clearing purpose, the following points must be verified.
2) If the instruments is crossed, not negotiable, it can be for the third party (can
be endorsee of an order cheque, or a holder of bearer cheque).
7) The cheques or drafts should not be crossed specially to any other bank.
8) A cheque payable to one of the joint account holder should not be collected
for the joint account without the payee’s endorsement, or consent.
10) Pay orders, although negotiable, should not be collected for third parties.
12) Mail transfer Receipts pay ships and treasury receipt should not be collected
for persons other than the payee.
14) Branch agent’s permission should be obtained before accepting a third party
cheque or draft for credit of the account of the staff member.
16) If the payee of an instrument is Habib Bank Limited, it can be collected for
credit of the drawer’s account, or the amount of the instrument may be utilized
as desired by the drawer in writing.
17) Cheque payable to a trust, account should not be collected for credit to at
trustee account.
SCRUTINY OF PAY-IN-SLIP
1. On both the counterfoil and the pay in slip following should be checked.
i. Date of Deposits
2. Customer should use separate pay in slip for transfer, transfer delivery,
and clearing cheques.
3. The amount noted should be the same as the amount of the instruments,
and the amount in words and figures should be same.
After scrutinizing the cheques and other deposit instruments and paying slip
at the counter the following procedure is under taken by cashier if he is satisfied.
3. ADVANCES DEPARTMENT
1. Introduction
2. Securities.
3. Types of advances
INTRODUCTION
SECURITIES
1. Guarantees
When an application for advance cannot offer any tangible security, the
banker may rely on personal guarantees to protect himself against loss on
advances or overdraft to the applicant.
2. Mortgage
3. Hypothecation
4. Pledge
In a pledge the ownership remains with pledge, but the pledge has the
exclusive possession of property until the advance is repaid in full. While in case
of the default the pledge has the power of sale after giving due notice.
5. Promissory Note
• TYPES OF ADVANCES
The advances which are given by Habib Bank Limited are as under:-
Demand Finances are those advances which are allowed in lump sum for
a fixed period and are repayable lump sum or gradually in installments.
TYPES OF ADVANCES
Running finance (old name overdrafts) are advances, which are generally,
given to meet temporary requirements of the customers. A good customer use
the banks running finance limit as a mean of protecting his credit in the market
and as a line of security defense to meet his commitments.
I. Unsecured
Under such type of overdraft the bank pay upon the personal security of
the customer’s mentioned on the customer’s account.
II. Secured
Under this type of overdraft the bank allows his customer to withdraw
more than his deposits after giving security against the amount overdrawn.
ii. Deposits
SMALL LOANS
The advance facility is allowed both to local foreign bills and is classified
as under:-
ii. FAFB (Foreign) advances against foreign bill, covering bills of exchange
bills of lading airway bills of exchange bills of lading airways bills etc.
6. AGRICULTURE LOANS
Loans to the farmers with holding up to 25 acres for meeting their short
terms, medium and long terms Agricultural production requirements, such as:
i. Agricultural inputs
ii. Tube wells
iii. Live Stock Framing
iv. Land improvement
7. INDUSTRIAL LOANS
Besides the short-term loans which play a part in working capital medium
and long-term loans are also given to industrial sector for purchase of machinery
and other capital nature goods.
The foreign exchange term refers to the principles that determine the rate of
exchange. It covers following three senses:
iii. The principles on which the people of the world settle their debts to one
another.
i. Merchandise Transaction
These consist of visible imports and exports, i.e. the purchase of goods for
abroad and sale of goods to abroad.
5. BILLS DEPARTMENT
These are bills or cheques etc. which are collected locally. They are
received from outstation branches banks and parties.
DEMAND DRAFT:
CLEAN BILLS:
DOCUMENTARY BILLS:
PAY SLIP:
PAY ORDER:
Pay order is issued to other banks for collection of make the payment as
said.
6. ACCOUNTS DEPARTMENT
Usually Accounts are maintained in two ways:
a. Journal System
b. Vouchers System
Voucher system is used for every transaction. Voucher has to be prepared either
in cash or in transfer or in clearing, the Sheet upon which these vouchers are
summarized transactions-wise and consolidated into a figure is called
supplementary.
Types of Supplementary
a. Debit Supplementary
b. Credit Supplementary
Debit supplementary is used for debit voucher and credit supplementary is used
for credit voucher books and registered maintained by bank are as follows:
1. General ledger
4. Transfer book
INCOME INCLUDES
2. Discount
3. Service Charges
EXPENDITURES INCLUDES
7. REMITTANCE DEPARTMENT
When a customer requests the bank to transfer his money from one
branch of bank to another branch of the same bank or from one city to another
city to the same bank or any other bank. Customer fills the form given by bank. If
the customer has an account with that amount as mentioned in the application
form then concerned officer will undertake the following procedure to make the
mail transfer complete.
v. Advice to Customer
In case where the customer is not account holder of the bank then the
customer will have to deposit the amount which he wants to transfer under Mail.
Then the above said procedure will be done.
This type of transfer is simple. After filling the application form the
concerning officer shall fill the telegraphic transfer form. Then it is sent to the
required bank which on receiving it immediately makes the payment to the
customer and after wards the voucher are sent to that bank by ordinary mail.
Demand draft is just like cheques and issued when the customer wants to take
cash with him personally. The idea behind it is to avoid the risk and burden of
currency notes in huge quantity. Demand draft can easily be handled whatever
amount it has and the money can easily be taken from the bank when it is
presented. In fact, the bank persuades the customer to transfer money by drafts
and avoid the risk of frauds involves in M.T and T.T Draft is only issued when
theBank shows customer and bank has confidence in him.
NBP products
1. Premium Aamdani
• Minimum down payment, 10% of asset price (5% for PCO & Telecaster)
• Tenure 1 to 5 years (for PCO 2 years)
• Grace period 3 months
• Maximum loan amount Rs. 200,000/-
• Age 18-45 years
• Mark-up (variable) 1 year KIBOR + 2.00% p.a.
• The customer will pay markup @ 6% p.a., rest will be borne by GOP*
• Life & disability insurance paid by GOP*
* subject to the availability of subsidy from GOP
4. Saiban
Home Financing
• Home Purchase
• Home Construction
• Home Renovation
5. Advanced Salary
Personal Loan
• Easy installments of 1 to 60 months at your choice
• No minimum income collateral & insurance charges required
• Quick processing and fastest disbursement
• The product is for permanent employees of Government, Semi
Government
and Autonomous bodies receiving salaries through NBP accounts
6. Cash card
7. Investor Advantage
8. Cash n Gold
9. Kisan Taqat
Product Information
Remitters in USA can log on to our user friendly website, www.pakremit.com and
easily remit funds to Pakistan from the comfort of their homes, in a matter of
minutes.
Process
• Strikes*
• Acts of Terrorism*
NBP Protection Shield
(Life is Precious)
* Provided the insured is not actively involved in these activities
Performance Analysis
(Rs Bn)
ITEMS
Over 2005
2005 2006 2007 2008 2009
Number of 3.6
1428 1431 1434 1445 1565
Branches
Number of 17.5
15351 15541 15785 18096 23730
Employees
SWOT ANALYSIS
The SWOT analysis is done by the organization for the environmental scanning.
The strength and weaknesses and opportunities and threats are analyzed by
organization from the external environment. NBP SWOT analysis is given below:
STRENGTH
A National Bank brand image is its major strength. It has always been
considered as the pillar of the country's economic scenario asset wise or balance
sheet wise. Its image, work force, network and reputation have created a
bank has the ability to compete with any multinational bank as to keep pace with the
changing and fast growing world of today computer have become necessities. The
reserve funds indicate positive sign as they have increased as compared to the
previous years.
Another competitive edge that the bank has on the rest of the competitors is its
expanding business worldwide catering for a large and vast group of customer and
ORGANIZATION CULTURE
NBP's organization culture was very friendly and interesting. Employees has
created a very cooperative environment among each other. They have created
loyalty toward the organization by deviating their future efforts and energies. The
employees take the organizational problem personals and try their best for the
Fortunately NBP has got from time to time best top management. Currently
the NBP Chairman and as well as President S. Ali Raza Sahid, he is the person
who has saved the life of the organization and contributed a lot.
INDUSTRIAL POLICIES
NBP helps the government on the implementation of its industrial policies with
Before the project financing NBP has the research appraisal team that justifies the
economic and financial feasibility of not project in the future. That is the strength is
the scare that it helps the organization from any loss that is to over in the future in
This is one of the best policies of NBP that it does not kept rude behavior with this
client if they make late in their repayment of loan. But it has adopts lenient way in
dealing with them, it helps its customers in the repayment making rescheduling and
YOUNG BLOOD
maintain the quality of their service by hiring new graduates but also would be
WEAKNESSES
various experienced and devoted employees were either forced or given the option
to leave. Only those people were left who had no organization better to join.
Due to right sizing a lot of confusions have taken place as well. For example
hence, the higher management finds it difficult to get work done. From 1995 onward
total assets. Total deposits, saving deposits advances investment and total income.
This downward trend can caused a great threat to the bank as its competitors are
talking its market share, which can cause ruining the image and reputation of the
bank thus posing danger in the long run. The graph depicts a decline in the
NBP's portfolio shows that it has made project financing only in the major
POOR ADVERTISEMENT
I keenly observe this that as compared to other banks. NBP is very poor in
advertising itself and institution, which works a lot in the development of the country,
but unfortunately in the business community most of the people are in award of it.
POOR NETWORK
NBP has only 1287 branches all over the Pakistan and in major cities of
Pakistan in which other competitors has their branches NBP don't have:
- The formalities involved in getting loans are time concerning and complicated
enough.
- It is observed that most of the loans, which have been granted on political basis,
- It is seemed that the recovery system of NBP is not effective that's why number of
OPPORTUNITIES
National Bank has very bright prospects for the future. They plan to region their lost
glory not only in terms of profitability but also include latest technology and
competent work force. Furthermore, NBP is the only bank which is providing facility
utility bank in collaboration with a private firm, which would provide this service for
12 hours.
This is the best opportunity available to all banks and NBP as well, to sponsor the IT
and computer based projects because the coming century is the century of
information technology as new a days all the business community is diverting its
NBP has advantage of generating more deposits and attracting valuable customers
due to its better image in the business community. NBP has also advantage of
increasing credit lines. This is only due to good dealing and better image that NBP
has directly acquired those lines of credit from abroad that are only acquired by it,
this better image can help further NBP in explanation of its activities.
NBP's major function is the project financing and it is doing it with full efforts.
increasing the business opportunities of NBP. Especially the textile sector is one
again improving even the sick projects has resumed their operations.
THREATS:
If there is a threat to the whole economy, it will pose a threat for National Bank.
National bank does not consider small bank a threat to its existence because the
way national bank can accommodation large customer, these small banks cannot
sanctions imposed against Pakistan will affect exchange. Business whereas the
freezing of accounts by State Bank of Pakistan have also caused problems for
National Bank. But the recent facts and figures indicate that the banks major rivals
lime MCB and HBL are causing threats to the bank in the long run thus snatching
away the market share by attracting a large number of customer due to the their
rising standards giving quality service and value added products and other major
This is the major threat for any business organization in Pakistan because
the political officials influence NBP in financing those projects which are not viable
or write off those loans which are still able to pay, this political influence cause many
threat for NBP in the sense that once the policies and procedures are approved by
government.
SICK PROJECTS
NBP's sick projects are increasing day by day due to economic downfall. As
our economy is weakening day by day the no of side projects are becoming sick
NBP is following fifty years old style of banking, in the computers of NBP
symphony word processor is still used. Which is the oldest word processor due
to this the deposits are looking to be corded, because of the provision of credit
cards and other such services by its competitors both local and foreign banks is
problems, which are written below along with their solutions, which need proper
• Information technology.
• Staff Shortage
• Frequent Transfers
• Promotion
• Locker Services
Standard Of Education
•
1. INFORMATION TECHNOLOGY
This age is the age of information technology. Today the world has become a
global village and the fastest mediums of communication are adopted all over the
world. And it is a fact that more the latest technology and methods of work are
In the National Bank of Pakistan (circular road branch) there is only one computer
available for carrying on the business of the bank.I suggest that the computer
should be on every counter of the bank and they should be interlinked together
2. EVENING BANKING
I observed that the bank is closed for public dealing in after 1:30PM and then
I suggest that at least one counter should be specified for the customer services till
evening. In this way, the people having jobs in other offices can get benefit from this
counter.
3. STAFF SHORTAGE
I discussed with bank personnel and they gave their views about staff
shortage. They told me that staff is very short and all the staff is overloaded with
work. That’s why the staff posted in the branch has to face many problems to finish
I suggest that number of staff in the branch should be increased so that they can
4. TRANSFERS
I observed that staff members of the Bank are frequently transferred not only
from one branch to another but from one city to another and sometimes from one
province to another.
the consent and will of the employee and if transferred, the facilities like residence
5. PROMOTION
I suggest that there should be a clear-cut policy about the promotion of employees,
particularly for the officers and they must aware of it that is polices must be
communicated. When policies are communicated to the employees then they can
perform their task more efficiently and will utilize their full efforts.
6. LOCKER SERVICES
businessmen also have some important documents, papers and valuable things to
In order to provide these facilities, locker services must be provided in this Branch.
7. STANDARD OF EDUCATION
graduation. Because in this way efficiency of work will increase and their dealing
As every body knows that "Knowledge without practice is sterile "In order
to give vent to this idea an Internship program of two months has been arranged
in different esteemed organizations during B.Com Hons/M.Com. In this regard on
1st of July 2010, I was asked by my principal to go to National Bank of Pakistan to
have an internship of two months there. So as per standing order of my Zonal
Chief I was assigned to work under the supervision of Manager of Abdullah Pur
Branch, Faisalabad.
After two weeks I performed tockening the cheques for withdrawals and
entering them into token book and, at the time of closing exact position of cash in
hand, Receipts and Payments was evaluated. The Manager and the Accountants
duly signed this evaluation.
weekly basis while Saving Deposits Ledgers were balanced on semi monthly
basis.
After Six Weeks My Manager tells me about the transfer book which
keeps the record of the transfer of funds between clients of bank.
RATIO ANALYSIS
2008 2009
1
Current Ratio
.3218 1.0205
Liquid Ratio
-
66.0
Loan to Deposits Ratio 843 65.4186
50 5
Loans to Assets Ratio
.1049 4.1628
Return on Assets
1.89 1.93
8
Return on Shareholder's Fund
.6806 4.8667
Return on Equity Capital 15.08 15.23
14.36 16.92
Earning per Share
4
Net Profit Ratio
.1601 2.5112
2009 2008
Return on Equity Ratio
Owner Equity
119,556,378 102,459,218
20
The past two years data shows an 18
16
improvement in the return on equity which is 14
12
Percentage
a positive sign. The Bank should have to 10 Series1
8
continue its policies. By observing the 6
15.08 15.23
2009 2008
Return on Assets
Total Assets
944,232,762 817,758,326
Return on Assets
Return on Assets
1.8
1.4
1 1.93 Series1
1.89
0.6
0.4
0.2
0
2008 2009
Years
Current Assets
Current Liabilities
Current Ratio
2009 2008
Curre nt Ratio
Loan to Assets ratio
2
1.8
1.6
1.4
Loans / Assets 1.2
% age
1 475,243,431 412,986,865
Series1
0.8
Advances 0.6 1.27 1.32
0.4
0.2
0 944,232,762 817,758,326
Assets 2008 2009
Ye ars
100
80
60 East
40 West
North
20
0
1st 2nd 3rd 4th
Qtr Qtr Qtr Qtr
Current ratio has decreased in comparison to 2008 but it is still above than 1.1. The
data shows that this is due to increase both in current assets and current liabilities but the
current liabilities raises more rapidly than current Assets.
50.5
50.33
50.25
50.2
2008 2009
Years
2009 2008
Net Profit Ratio
Net profit /
Interest Income X 100
18,211,8 15,458,59
Net profit 46 0
15
the interest income also increases. 25.36
Ser ies1
23.36
10
0
2008 2009
Y ear s
2009 2008
Loan to Deposit
Loans/Deposits
70
60
Loans to deposit ratio show a 50
% age
66.08 66.42 Series1
30
Recommendations
• In Past National Bank of Pakistan has always being suffered from bad
Government policies. Government intervention should avoided
completely.
• National Bank is going towards mobile banking but the problem is that
a common client has no idea of its usage due to lack of marketing. I
think that a proper marketing programme must be launched for client’s
awareness.
• Bank should help the society by providing interest free loans to the
Talented Students.
Financial Analysis
(Supplementary material)
Financial Analysis
National Bank of Pakistan
Balance sheet
As on 31 December 2009
Subordinated loans _ _
Liabilities against assets subject to 42,629 25,274
financial lease
Deferred tax liabilities _ _
94,791,919 81,367,002
Surplus on revaluation of 24,764,459 21,092,216
assets-net
Total Equity (2) 119,556,378 102,459,218
Total liabilities and 944,232,762 817,758,326
Owners Equity (1+2)
Rs.(000) Rs.(000)
Mark-up\return\Interest 77,947,697 60,942,798
earned 39,489,649 23,884,798
Mark-up\Return\Interest
expensed
Net mark-up interest Income 38,458,048 37,058,030
Provision against non performing
loans and advances 11,043,469 10,593,565
Provision against Diminution in
value of investments 605,629 373,249
Bad Debts written off directly 4,000
20,237 -
-
11,669,335 10,970,814
Net mark-up\Interest Income after
provision 26,788,713 26,087,216
23,513,897 19,502,080
increase
(decrease)
2009-2008
Shareholder equity
% age
Share Capital 20%
16.9
Unappropriated profit
17.4
Surplus on revaluation of fixed assets
ITEMS Increase
(decrease)
2002-2001
% age
27.9
Mark up\Interest\return earned
65.3
Mark up\interest\expenses
6.4
Provisions
12.84
Non mark up\Interest Income
20.5
Non mark up\Interest expensed
(3.0)
Profit before Taxation
(72.7)
Taxation
17.8
Profit after Taxation
17.82
Earning per share
2009 2008
Assets % age % age
Rs.(000) Rs.(000)
Cash and balances
115,827,868 12.3 106,503,756 13.02
with treasury bank
Balances with other
28,405,564 3.0 38,344,608 4.68
banks
Lending to financial
19,587,176 2.1 17,128,032 2.1
institutions
Operating fixed
25,147,192 2.7 24,217,655 2.96
assets
Deferred tax asset-
3,062,271 0.32 3,204,572 0.39
net
Other Assets 59,316,438 6.3 44,550,347 5.45
2009 2008
Liabilities % age % age
Rs.(000) Rs.(000)
Deposits and other 726,464,825 624,939,016
88.0 87.4
accounts
Borrowings from 45,278,138 40,458,926
5.49 5.6
financial Institutions
Bills payable 10,621,169 10,219,061
1.28 1.43
Surplus on
revaluation of 24,764,459 20.71 21,092,216 20.58
fixed assets
2009 2008
Income % age % age
Rs.(000) Rs.(000)
Markup\Interest 77,947,697 60,942,798
80.38 78.78
\Return earned
BIBLIOGRAPHY
1. The first important thing is the discussions with the staff of the bank especially
2009 2008
Expenses % age % age
Rs.(000) Rs.(000)
11,669,335 37,058,030
Provisions 14.82 42.12
22,571,470 18,171,198
Admin Expenses 28.65 20.65
321,647 583,361
Other Charges 0.41 0.66
with Operations Manager Sir Faisal and M.T.O Miss Sana Noureen.
2. The Bank Book of Instructions for the National Bank of Pakistan called the B.B.I.
5. Reading the economic bulletin of the bank which is published by the economic