BUSINESS PLAN

EXECUTIVE REASONING
2009

VISION STATEMENT

To Be the Most Admired Financial

Institution in Pakistan

MISSION STATEMENT

To Improve the Quality of Life for

Millions

OUR CORE PURPOSE

Enabling Success, Realizing

Dreams

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2009

BUSINESS DEVELOPMENT AND PROFIT

MAKING ON THE BASIS OF DESPOSITS
AND THEIR BIFURCATION

Amount in “000”
DEPOSITS TITLE
YEAR HIGH COST TERM
CURRENT SAVINGS
SAVINGS DEPOSITS
2005
2006
2007
2008
2009*

Current Deposit – Costs only branch service

Savings – Costs less than 7.5%
High Cost Savings – Costs more than 7.5%
Term Deposits – Costs according to tenure of Fixed Term

*Projected Figure

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2009 NIB BANK IMPROVES THE QUALITY OF

LIFE FOR MILLION BY INTRODUCING
DISTINGUISHED BANKING

SEGMENTIZED BANKING IS THE BEST TOOL WE GET WHEN WE TRY TO

FULFILL OUR CORE PURPOSE AND MISSION.

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2009
NIB BANK IMPROVES THE QUALITY OF
LIFE FOR MILLION BY INTRODUCING
VARIOUS PRODUCT RANGE
ON THE BASIS OF SEGMENTS WE INTRODUCE VAST PRODUCT RANGE
WHICH COVERS FROM AN EXECUTIVE BUSINESSMAN TO A HAWKER

In Retail Mass Affluent (RMA) we further divides it into two categories

RMA – Affluent
RMA – Life Banking

RMA – Affluent

• This segment is known as all round performer in our bank. It opens current account with
PKR 5,000 and client can take it up to anywhere.

• Salaried and Business accounts both are dealt in it.

• A class of banking which provide classy services.

• Except Trade Financing, totally secured Running Finance can be availed from this
segment’s branches.

RMA – Life Banking

• RMA – Life Banking has to do a lot from RMA – Affluent; it gives better banking
solutions to companies payroll

• Companies are introduced with the concept of online salary transfers of their employees
in NIB Bank Limited.

• Same standard services to companies’ employees in their salary accounts.

• Employees are glad to have an account which doesn’t cost them much and companies
happy because their employees are happy with NIB Bank.

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2009
PRODUCTS AND SERVICES
FINANCIAL PRODUCTS
A. ACCOUNTS

• NIB Current Account

• NIB Savings Account
• NIB Term Deposits

TITLES

• Normal Savings:

o NIB Khazana Account (Monthly profit on everyday end’s balance)

o NIB Azadi Account (Semi-Annually profit on every month’s minimum
balance)

• Term Deposits

o NIB Term Deposits (Tenure Ranging from 7 Days to 5 Years)

o NIB Amanat
o NIB Promise
o NIB FCY Deposit (Deposits in Foreign currencies majorly USD,
EURO, GBP)

B. SERVICE PRUDENTIALS

• NIB Cash Guard (securing client’s money)

• NIB Committee (primitive way of saving)
• NIB Future (insuring life and investment both at the same time)
• NIB Direct Pay (providing on pit-stop solutions)

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2009 THE MOST ADMIRED FINANCIAL

INSTITUTION FACES STRONG
COMPETITION

All scheduled banks with State Bank of Pakistan operating in the economy
giving tough time to each other. Amongst services and clientage
differentiation on the basis of branding and portfolios, some banks are to
be listed in the vicinity;

Habib Bank Limited

MCB Bank
Bank Alfalah
Faysal Bank
United bank
KASB

Besides some pioneers in banking, services based and Islamic banking creates
hardships for others like;

Standard Chartered Bank

Soneri Bank
Bank of Punjab
Atlas Bank
Bank Islami
Dawood Islamic Bank
Emirates Global Islamic Bank
Dubai Islamic Bank

Account holders seem to prefer brand some time but only can be done if
requirements of account holder are fulfilled, anyhow they are in the line;

Citi Bank
Barclays
HSBC
Silk Bank
SAMBA

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2009

STRATEGY AND TARGET

MARKET
In order to capture clients and target market NIB Bank has introduced following
plans:

Personalized Banking Services

I. Relationship Management
II. Fresh Clientage
III. Retaining Existing Clientage
IV. References Portfolio Development
V. Providing Banking Consultancy

PURVIEW OF BANKING IN PAKISTAN

Commercial banks in Pakistan are facing tough competition from economy phases and
according to Pakistan Banks’ Association a precise facts and figures of textile and
agricultural sectors is presented:

“Pakistan’s economy has shown great resilience against internal and external shocks of very
high intensity and grew robustly at 5.8 percent in 2007-08, as against 6.8 percent last year
and this year’s target of 7.2 percent. The Commodity Producing Sector (CPS) registered a
growth of 3.2 percent in 2007-08 as against 6.0 percent last year owing mainly to the
lackluster performance of agriculture and manufacturing. While agriculture grew by 1.5
percent, the manufacturing sector posted a modest growth of 5.4 percent in 2007-08. The
large scale manufacturing (LSM) sector witnessed a modest growth of 4.8 percent, down
from 8.6 percent last year. The manufacturing sector has been hard hit by political instability,
frequent eruptions of incidents detrimental to law and order and the acute energy shortages.
In unison with increasing prices for fuel and energy, all these factors have caused slower
growth in LSM. Growth in the small scale manufacturing sub-sector moderated to 7.5 percent
in 2007-08 from 8.1 percent during 2006-07.”

In such scenario NIB Bank plans to introduce banking with the bigger portfolio. In
order to make it good NIB Bank introduces Sales and Marketing Strategic Plans

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2009

PLAN OBJECTIVE

NIB believes that people who live and work in proximity and understand needs better.
Being embedded within local community, NIB is aware of daily challenges and is
prepared to provide financial solutions. So NIB core objective to achieve higher
portfolios, decreasing cost of funds, providing the best services.

TARGET MARKET

For Current Deposits:

• Sole Proprietorships
• Private Limited Companies
• Partnerships

For Savings Account

• Individual Businessman’s Account

• Landlord
• Non Profit Organization’s Account
• Salaried Persons

For Term Deposits

Having plenty money with anyone can have term deposit so everyone will be targeted
for Fixed Term Deposits in NIB Bank.

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2009

SALES AND SERVICES

PERSONALIZED BANKING

NIB Bank understands different needs of banking with different clients so

NIB introduces the concept of personalized services of banking to clients
in which resource from bank moves to client’s place and queries are
resolved. Moreover client is provided with better consultancy services in
banking through which client is able to understand his need and
requirement to be fulfilled from bank in a professional manner.

IN HOUSE, RETENTION OF CUSTOMER

The vicinity of Gulberg comprise of almost every kind of business man.

Some clients feel easy to do banking personally in the banking instead of
sending any representative from their office. In order to retain that client
and to come up with better results it’s very important to have a competent
person in house who has a gentle effect on client and can take transaction
up to next level.

OWNERSHIP

Developing a new branch, ownership must have its significance.

Resource of branch must take ownership to deal with the client and must
consider clients responsibility. Managing things prudentially client’s
needs to be fulfilled

RESOURCE ALLOCATION

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In sales resource allocation is keenly observed and has taken into

account. Every sales person has duty to perform and some compulsory
things to do amongst job description are:

• Individual target are allocated every day to every resource for

2009

deposit mobilization and developing business

• Personal visit to clients has to be done on consistent basis which
ensures personalized services to clients
• New relationship ticking is observed so that business development
procedure doesn’t stop

RELATIONSHIP MANAGEMENT

NIB Banks make an integral part of hierarchy a Relationship Manager.

Clients must have a manager in the bank that is managing their money
and knows all about that. Based on portfolio size NIB Bank introduces
Floor Manager and Liabilities Manager as a different concept through
which more business can come into bank and at the same time clients can
be dealt good which earns GOODWILL.

PROFIT MAKING AND CROSSING BREAK EVENS

We all are aware of the fact that profit in bank depends upon the cost
which banking is incurring on deposits which has in the bank. NIB Bank
understands the importance of current deposit in portfolio so having more
of the same can reduce cost of funds and profits can be earned.

REFERNCE BASED SELLING

New clientage is easier to bring into bank on the basis of existing clients.
New relationships will be made through existing clients and they will be
managed accordingly.

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2009

BUSINESS DEVELOPMENT
STRATEGIES
Strategy for Business Development.

During the year 2009, the real estate market is under recession and local/foreign
investments have stopped. Secondly, our cost of funds is also on the higher side. As
a result, it is little difficult for AIB to offer competitive rates. Keeping in view these
issues, we have planned to take following steps for resolution:

• To improve our Core deposit.

• Reduce/minimize dependence over large deposits.
• Increase number of accounts
• Target SMEs outside our vicinity also.
• Booking of trade business
• Target Schools & colleges
• Target consumer business
• Target individual, house-wives & family accounts.
• To facilitate Collection Accounts of different Corporate companies for deposit
Of fee, charges etc., by signing Service Level Agreements with those banks
With large branch networks.

Product Portfolio Strategy

As mentioned above, we will monitor and track the goals on monthly basis. The
performance objectives and expected levels of performance of different products in
the portfolio (e.g. Deposit Schemes, Trade Business, Funding, Lockers, etc) will be
matched against the set goals. Following procedure will be used for tracking product
portfolio performance:

Setting up of Performance Objectives (Goals, Targets)

Product Evaluation through Standard feed back of customers, Financial analysis,
research study etc.
Identification of problem product(s).(If any; and/or those products with less
acceptability in the market.)
Decide & discuss how to eliminate the problem.

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Branding Strategy
2009

The strategy of using the corporate name to identify the entire product offering may
be used. AIB presents itself as a Pioneer in Islamic Banking with Shariah compliant
products and services. Corporate branding strategy will give us an advantage of
using one advertising and sales promotion program to support all products.

Product Development.

The large network of branches of our competitors is giving us a major set back to us.
Therefore, we are planning to develop a product for collection of funds of different
companies by using network of other banks.

Advertising & Promotional Plans

Advertising support is required in order to achieve the following objectives:

• To get maximum exposure in the market

• To create awareness amongst the customers
• Create change in customer’s attitude
• To increase product sales
• Maximize profit

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Effective Tools for Advertising

2009

The main factors which mainly influence the advertising decision.

• Easy Access to the target audience
• The Costs of reaching the target groups/markets

Therefore following tools may be used for advertising:

Print Media

• It is cost effective
• Newspapers are easily accessible by general public
• Repetition of messages

Direct Marketing

Telemarketing is the tool which enables AIB to make direct contact with the individual
customers.

Sponsorships

AIB can participate in sponsorships of different matches, events at National provincial

or city level.

Electronic Media

Electronic media is playing an important role in advertising. It is expensive but cannot

be ignored.

Agency Agreements

AIB may enter into agreements with different companies for sale of their products to
end consumers through consumer financing. It will help in indirect advertising and
costs of advertising may be shared.

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Tracking Advertising Performance

Impact of advertising on sales is difficult to measure because other factors

2009 also influence sales & profits. However, customer surveys through
questionnaires etc. can be conducted to assess the effectiveness.

Comparison with our Competitors

As mentioned above, we are in direct or indirect competition with almost

all the banks in the vicinity. All the banks have developed their aggressive
campaigns for deposits, Consumer financing, etc. They are running their
campaigns through using different or all modes of advertising. Few are
mentioned below:

Print Media, Electronic Media, Billboards, Road signs; location wise

advertising e.g. Railways, Airports, Gas Stations, Shops etc; Advertising on
different occasions e.g. Matches, Basant festivals etc.

• HUMAN RESOURCE– STRATEGY AND PLAN

The following efforts shall be made for development of human

resources:

1. On the Job Training

2. Interdepartmental Job Rotation
3. Staff-Training
4. Formal External Training
5. Motivation

Information Technology

E-mail & Internet Facility

Staff having direct interaction with customers may be given internet-email facility. It is one
of the fastest, easiest and cost effective ways of information exchange.

ATM Network

Automatic Teller Machines are required to be installed country wide

E-Banking.

On line Excess is develop for customers to operate their transactions via internet.

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2009

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