Escolar Documentos
Profissional Documentos
Cultura Documentos
INTRODUCTION TO REPORT
Banking has a wide scope but the study is restricted to an overview of basic
banking operations carried at NBP TIP branch Haripur. So the report does not include
detailed description of all of the NBP operations, and include only those one which
were carried at NBP TIP branch Haripur. However, the financial statements analysis
and SWOT analyses have been carried out for NBP as a whole.
During the study I tried to include only relevant material and avoid from
irrelevant material. No matter how efficiently a study is conducted, it cannot be
perfect in all respects. This study was conducted in accordance with the objectives of
the study. The study may not include broad explanations of facts and figures due to
the nature of the study.
Secondly, the limitation which affects the study is the restriction on
mentioning every fact of the bank due to the problem of secrecy of the bank. Also the
availability of required data was a problem as all the documents and files are kept
strictly under lock and key due to their confidential nature. Thirdly, the problem of
short time period also makes the analysis restricted as one cannot properly understand
and thus analyze all the operations of a bank just in eight weeks.
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1.4 MERITS OF THE STUDY
The study done will benefit the finance students in particular and banking
students in general because the financial analysis section of this report
comprehensively encompasses all respects of financial analysis. Furthermore, NBP
TIP branch Haripur may also be able to take the benefit from the recommendations
made at the end of the report.
There are two types of data collected for analysis and review (i.e. primary and
secondary data). The methods used for collecting primary and secondary data are as
follows:
Primary Data: - The information collected for the specific purpose at hand or data
collected for first time is called Primary Data. Following methods of primary data is
used;
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Chapter No 2
INTRODUCTION TO BANK
Before going to start we must know that what is bank? Like many other
subjects and social sciences no any precise definition can be given for the study of
banking also. Different authors have defined and described this subject, keeping in
view the particular functions of banking.
Mr. Paget says “No one and no body corporate can be a banker who does not open:
a) Current Account
b) Pays cheques drawn upon him
c) Collects cheques for the customers
Mr. Kinly says “Bank is an institution which receives deposits and advances
loans”.
The definition laid down in the Banking Companies Act 1962 is “Bankers means a
person, transacting the business of accepting for the purpose of lending or investment,
of deposits of money from public, repayable on demand or otherwise and withdraw
able by cheques, drafts or orders or otherwise and includes any Post Office Saving
Bank.”
In view of the above definitions, in simple words a bank can be defined as an
institution dealing in money, accepting deposits and advancing loans.
2.2) ORIGIN?
There are different opinions about the origin of the word “Bank”. According
to some authors the word bank is derived from Latin word “Bancus” or “Banque”
which means a bench. The explanation of this origin is attributed to the fact that the
Jews in Lombardy transected the business of money exchange on benches in the
market place. When the business failed, the people destroy the bench. Incidentally the
word bankrupt is said to have been evolved from this practice.
The opponents of this opinion argue that if it was so, then how is it that the
Italian moneychangers were never called Bunchier in the middle ages. Other
authorities hold the opinion that Bank is derived from German word back which mean
joint stock fund. Later on, when the German occupied major part of Italy, the Back
was italicized into Bank.
-3-
2.3) EARLY GROWTH AND DEVELOPMENT OF MODERN
BANKING:
Despite the classical origin, banking in its modern form and structure started
in Brittan when many of the Lombardy merchants came to England in the fourteen
century and settled in the part of the London now called Lombard Street. They were
so resourceful that even the kings had to depend on them for loans despite the fact that
the church was firmly against usury. They dealt with not only keeping the money in
safe custody but also changed money for the travelers or merchants engaged in
foreign trade.
By the year 1700, the Bank of England was not only issuing Notes but also
conducting accounts for customers. Being a joint stock bank by charter, its directors
were conducting the business like that of limited companies. The Bank of England
was the only joint stock company which was given the monopoly of issuing the Bank
Notes. In 1708 the privilege to issue Notes in England was withdrawn from joint
stock banks and confined to the private banks with not more then 6 partners. Up to
1813 or there about in England, the main profit of banks was derived from the
circulation of notes and for many years after that, deposits were treated as very minor
matters.
In subcontinent Indo Pak, foundations of modern banking were laid in
eighteenth century in Calcutta when with the help of Europeans bankers’ first bank
“Bank of India” was established. After that, Government of India founded “Bank of
Bengal” also new opening at Madras and Bombay. Imperial Bank of India” was
founded in 1921, whereas “Reserve Bank of India” was established in 1935 with all
the powers as the central bank.
-4-
Quaid-i-Azam Muhammad Ali Jinnah, the first Governor General of Pakistan and
father of the nation, and its Head Office in Karachi.
State Bank of Pakistan, in addition to its normal duties as Central Bank,
played a very important role in the development, controlling and modernizing the
banking system of the country. With the development, new commercial banks with
country wide branches were established. Sooner they extended their branches to
foreign countries. Moreover, specialized financial institutions like IDBP, ADBP (now
ZTB), PICIC, NDFC, HBFC were also created to help and finance the particular
sectors of the economy like industry, agriculture and housing.
All the commercial banks, incorporated in Pakistan and carrying on the bank
business in the country or abroad, including State Bank of Pakistan were nationalized
from 1st January, 1974.
After 1990, the banks are in the process of privatization like other units of
economy as a mater of policy of the ruling govt. This step is taken in view of poor
performance and other weakness in the banking services. A privatization commission
was set up in January, 1991. Two banks namely Muslim Commercial Bank and Allied
Bank Limited are privatized and transferred to private sector. And now United Bank
and Habib Bank are also privatized. In addition to this policy Government has
allowed the establishment of new private bank in August, 1991 as a result of which
many new banks like Indus Bank, Mehran Bank, Soneri Bank, Khyber Bank, The
Bank of Punjab etc are established having their branches almost in all important cities
of the country with largest banking facilities and efficient administrations.
Central banks
Commercial banks
Saving banks
Mortgage banks
Consumer banks
Investment banks
Agriculture banks
Industrial banks etc.
-5-
2.6.1) SCHEDULED COMMERCIAL BANKS:
These include National Bank of Pakistan, and Habib Bank Ltd which are
possible sector Banks, where as MCB and ABL were privatized in 1992 and UBL in
2004.These banks have significant market share due to large number of branches.
There are about 16 foreign Banks operating in the country. They cater mostly
to high profile corporate cleanest. The regulatory bodies that monitor the banking
sector of finance and the regional Board.
The following are the main foreign banks;
• Bank Alfalah,
• City Bank,
• Standard Charter Bank,
• Pak Saudi Bank,
• Fasil Bank,
• Metropolitan Bank,
• ABN Amro Bank etc.
• Meezan Bank Ltd.
• Pak Aman bank Ltd.
• Alburaka islamia bank.
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Chapter No 3
NATIONAL BANK OF PAKISTAN
-7-
• Hajj facilities
• Utility bills
• Investment advice and other services
• Special deposits products/ schemes
• Pak rupee Travelers chouse
• New Product.
VISION STATEMENT: -
Our vision is that we want to be the pre-eminent financial
institution in Pakistan and achieve market recognition both in
quality and delivery of service as well as the range of product
offering.
MISION STATEMENT: -
-8-
● We believe that these are measures of true success
-9-
For the year 2006 the bank earned a pre-tax profit of Rs.26,311 million as
compare to 19056 million in 2005 shows 38% increase. The performance is based on
growth in all the key performance indicators. Pre-tax return on equity stood at
increase at rate of 40.9%, pre-tax return on assets further improved to 9.94% from
2.4% of the last year. Earning per share jumped to Rs.24,01 from Rs. 17.92 of last
year, one of the highest in the banking sector. All the above-mentioned ratios are in
the top tier by global standards.
It is also important to note that the increase in profit of Rs. 4.313 billion was
achieved through strong growth in core banking income by Rs. 4 billion over last
year.
Total assets at the year end stood at Rs. 635133 million an increase of Rs.
57414 million. Deposits increased by Rs. 38445 million to Rs. 501872 million. The
bank remains well capitalized and its capital adequacy ratio is well above the banking
industry average.
With the focus on upgrading existing and developing new distribution channels,
creating new and more competitive products, year 2006 was an excellent year for
retail banking. During the year, the bank significantly grew its customer footings,
continued to expand its delivery channels and further improve its process efficiencies,
thus re-enforcing its leadership position in the market and enhancing its share of
income contribution to the bank. This business segment posted excellent results with
strong revenue growth.
The momentum picked up by NBP in 2003 further accelerated in 2006. “NBP
Advance Salary” product alone showed exceptional growth both in terms of portfolio
and number of borrowers, which swelled to over 500,000 customers. Similarly “NBP
SME Karsaz”, a SME financing product has been disbursed to more then 18,000
customers. NBP is also the market leader in agriculture and commodity financing
with approximately 300,000 customers.
There are new products also launch, for example “NBP Kisan Dost”, a
programmed based lending product for dairy farmers and debit cards branded as
“NBP cash card”. E-banking products are set to enhance NBP few based income
considerably. The main objectives are to remain the market leader with effective MIS
ensuring proper tracking and monitoring, to increase fee based revenue, and to
provide best customer satisfaction as well as loyalty through top class branded
products.
Progress was made in improving the overall risk architecture. A
comprehensive risk management manual was put in place in line with Central Bank
guidelines. The bank has initiated a well defined risk rating system. The bank is well
aware of the challenges posed by risk management guidelines and Basel II accord and
is continuously improving the posture to cope up with the challenges.
The bank firmly believes that a highly motivated and well trained workforce is
the key factor to success. Heavy emphasis is being placed on institutionalizing a merit
culture through performance based rewards and career development. The bank
remains committed to improve the quality and banking skills of its human resource, to
ensure its position as the market leader. The regular hiring of 70-80 MBA’s annually
since 2002 will further improve the quality of the workforce.
- 10 -
The bank is about to install 70 new top of the line ATMs, set up a national cal
centre, introduce on-line banking facilities and automates government business. NBP
is also on track for acquisition of a new core banking application to improve
operational efficiency and enhance customer service.
NBP branches are being upgraded with standardized premises and signage
under the new brand. To cater to the needs for Islamic banking, the opening of the
first Islamic banking branch is in the final stages. This initiative is expected to attract
new customers besides increasing revenue.
The JCR-VIC Credit Rating Agency an affiliate of Japan’s Credit Rating
Agency has awarded Credit Rating “AAA rating on September 20, 2005 which is
more than stable in whole banking industry of Pakistan.
NBP was listed on KSE in 2004. It paid up capital, as on 31.12.2005 was Rs. 7910
million. The Bank’s Rs. 10 share roes to 29.35 and fell to Rs. 24.01in 2006. The Bank
is currently active in the areas of:
Member Member
Member Member Member Member
- 11 -
Secretary
NBP, Board of Directors list consist the following members and their designation.
NAME DISIGNATION
- 12 -
EVP & Group Chief (A), Risk Management
Tahira Raza
Group
Executive committee consists of one president and nine members from whom
one member also performs function of both as a member and secretary. Board of
directors nominates executive committee and executive committee group chiefs.
President
Secretary member
Member Member
Member
Member Member
Member
Member Member
- 13 -
3.9) OBJECTIVE AND VALUES OF NATIONAL BANK OF .
PAKISTAN
Translating the spirit of Sharia into modern financial products and services.
Maintain a high of procedure in the financial community.
Growth through creation of sustainable relationship with our customers.
Prudence to guide our business conduct.
A national presence with a history of contribution to our communities.
Create value for all our stakeholders.
Care about relationships.
Developing our operational infrastructure, system architecture and business
strategies focused to customer needs, with which it endeavors to share our
success.
Focusing on quality training and management development programmers and
equal opportunity employer.
Reflecting high standards of integrity, prosperity, goodwill and teamwork in
conduct, with in the organization and the market place.
Late but not the least an innovative, creative and dynamic institution
responding to the changing needs of internal, environment.
- 14 -
3.10) NATIONAL BANK TIP BRANCH HARIPUR
Organizational Chart
Manager
Manager
Operations
Computer/IT
Dispatch Gov trans Incharge
Incharge Incharge
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The branch manager shall look after the branch internal working in coordination with
operation manager and other line functional officers/staff in addition to duties
delegated by the HO(head office) vide instruction circular no, pertaining to advances,
grievances and complaint handlings of staff/ customers in the best interest of this
institution.
- 16 -
• To issue balance certificate as and when required by the client
• To issue tokens against the cheques ,drafts , etc whenever required to pay in
cash to all CA/SB accounts indiscriminately and maintain token register as well
• To attend balance enquiry after satisfaction of being account holders
evidencing through cheque books and the authorized person after getting verification
of signature and by order of a senior bank officer. While attending balance enquiry
the last two digest should be omitted. The balance of account and cheque series must
not be disclosed to any person on telephone in any case
• To issue bank statements to the account holders as and when required and only
the authorized person
• Authorized to post and pass cheques in accounts in the computer and marking
significantly current and pls cheques assisting in identification for the signature
verifying officer of current and saving accounts putting pay cash stamp scroll ,scroll
number, initial and toll signature and adhere service standards.
• To prepare FAN FOLDS of cheques as and when receive in DAK, enter in
RBV register sign and pass under his joint signature
• To transfer and remit the Govt. funds timely as per standing instruction
• To issue balance certificate to various organizations as per existing
arrangements after charging due commissions as given in tariff
• Balancing of Weekly and monthly balance books as and when allotted
- 17 -
• Issuance cancellation, revocation and proper follow-up of Bank Guarantees,
keep up to date record of commission in the books of accounts
• Necessary correspondence relating to advances
• Checking of daily DTRs relating to advances and reconciling it with DTRs
received from the computer centre Peshawar
• Any other duty assigned by br/op manager
- 18 -
• Passing officer all the DD advices
• To respond all the DD advices, after due verification of signature and test from
joint custodians
• Passing of SBP cheques and marking of date of payment at the advice and
keep a copy of SBP DD and advice in record file
• Payments of drafts, GDD,PO and responding of MTs after getting verified
signature and test
• Maintaining of Ex-Advice register ensuring that no entry is outstanding in Ex-
Advice register
- 19 -
• KYC-Know your customer .To send F-528 and F-529 to the account holders
and the introducer and to keep a record of the same attaching to the opening form as
per requirement of the audit
• To realize LSC and SC deposited by the account holder from local and out
station as required by the bank and SBP
• To arrange to send Govt. and Dist Accounts officer and get the existing
procedure
• Any other duty assigned by the manager or operational manager
Deposits Management
Advances
Foreign Exchange
Remittance
Clearing House Management
Cash Management
Government Business
- 20 -
Other Miscellanies
- 21 -
sufficient fund and also wish to have a safe investment, deposit their savings in this
account.
The rate of interest on fixed deposits is higher than the other accounts. The
longer the duration for which the amount is kept, the higher is the rate of interest and
vice versa.
The bank on receipt of funds for time deposits issues a fixed deposit receipt (FDR) on
a specially printed form.
• The cash is received at the cash counter with the particular instrument
• The cash is sorted
• It is recorded in the relevant record books
• For the recording purpose two book are used at the cash counter for deposits
• Transfer book (for cheques etc)
• Cash receiving book (the most liquid cash)
• Checking process is conducted
- 22 -
• The payment is made of verified cheque
- 23 -
• If you are paying your Installments regularly then you can avail Auto Roll
over facility.
• Original loan amount can be increased due to promotion/increment.
• No early payment surcharge.
- 24 -
o No maximum limit of financing (in case of SC/DSC per party limit of financing Rs:
20 million)
o Financing upto 90% of encashment value of security.
o Repayment period 12-15 months.
o Market based Mark up rates upto 13% P.A.(fixed & floating
rate options based on kibor available.)
o Quick Processing.
o No hidden cost.
o NO penalty for early adjustment.
o Roll over facility available (subject to regular payment of
o markup)
- 25 -
•Two debit withdrawals allowed in a month and no limit on number of deposit
transactions
•Profit calculated monthly and paid on half yearly basis
• Earning rate of interest is 7.25% per annum
- 26 -
provided for; Purchase of House, Construction of House, Renovation/ Home
improvement and/ or refinance.
- 27 -
This is the most significant and vital department which deals in international banking
i.e. issued/ paid of
Letter of credits (LC’s),
Foreign Telegraph Transfer (FTT),
Letter of guarantee (LG’s),
Foreign Demand Draft (FDD)
Western Union Money Transfer (WUMT)
And foreign currency remittances.
Foreign currency deposits accounts are maintained in all the key / hard currencies i.e.
U.S $,
U.K Pound,
And EURO.
RELIABLE: -
For nearly 150 years, millions of people have trusted western Union to support
family back home, rescue travelers in emergencies and keep business operating
smoothly. Each transfer is protected by and advanced world wide security system and
can be verified with a unique Money Transfer control Number as well as an original
password you chose. With Western Union, your money will be paid out quickly,
giving you peace of mind.
FAST: -
- 28 -
Money is revived minutes after it is sent. Western Union uses advanced
electronic technology and a worldwide computer network for fast payout in more
than 189 countries and territories.
CONVENIENT: -
Western Union agents are located where you need them: in banks, post offices,
pharmacies, retail stores, jewelers, supermarkets, railway stations, airports and other
places. Most agent locations offer convenient hours and service even on weekends.
More than 130,000 agent locations make Western Union one of the world’s largest
money transfer networks.
Process of WUMT.
1) A person who wants to send money (e.g in other country) will go to the agent of
WUMT and fill a proper form give money + commission to agent, agent will give him
10 digits specific code and enter the form in WUMT ONLINE SYSTEM.
2) Then sender informs the receiver about 10 digits code and amount of money send.
3) Now receiver can receive money form any where in the world through WUMT
agent by providing specific information (i.e. sender name, receiver name, amount of
money, code and some times secret question and answer) these information is given
on specific form.
REMITTANCES
The National Bank of Pakistan provides the facility of safe transfer of money
from one place to another. In the respect the following facilities are available.
• IBTS
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• Local currency demand draft (DD)
• Foreign currency demand draft (FDD)
• Pay order
• Local fund transfer (TT)
• Foreign fund transfer (FTT)
In internal transfer the important thing is that both the branches of the bank
should be involved in online banking system through this the transfer is immediate
and fast the process consist on manual system land mail system.
DR CR
Cash ----
*Pak a/c of relevant branch ----
(*at which the DD is drawn)
Then an Ibo is issued to the relevant branch when that branch receives the Ibo, they
record the transfer as:
Pak A/C ----
DD payable ----
When the customer present the DD for payment then it is recorded as follows:
DD payable ----
Customer A/C (cash) ----
The processes of recording other bill payable are the same like DD
When the cash is received from the customer it is recorded as:
Cash ----7
Customer A/C ----
- 30 -
Cash ----
1) Clearing entry: -
Every day the representative of different banks meet in clearing house twice.
First clearing 9:30am
Second clearing 1:30pm
They present their cheques drawn upon each other to clearing incharge. He makes the
entry, add or subtract the amount from reserves and clear the cheques.
2) Endorsement: -
In this step bank crossing stamp is marked on the back of cheque, and bank
become the owner of cheque, the entry will be;
Dr Cr
Our Branch Endorsement ----
Payee A/C ----
- 31 -
3) Bank Transfer Scroll: -
After the endorsement we write the entry in Bank Transfer Scroll, in which
Dr are written in/under A/C No. ----
Cr are written in/under F-15 (for recovery)
The Balance of Transfer scroll and clearing register must be equal.
• Cash Receipts
• Cash Payment
• Government section
- 32 -
2) Government Payment: - All the amount of cash paid by the Government is paid
through this section. Usually in the early days of month the work in this section is
more as compared to other days.
Cash transactions are closed at 1:30 pm daily, and after this all the staff members of
cash department balance the daily receipts and payments.
- 33 -
CHAPTER 4
FINANCIAL ANALYSIS
LIABILITIES
- 34 -
finance lease
Through percent analysis of above balance sheet we know that cash and balance with treasury banks
increase 10.012% while balances with other banks increase 31.01%. Lending to financial institutions
increase 44.13% and investment is decrease 11.16%. Share capital increase 19.99 % and reserve
increase 12.34 %. In the same way all the data is calculated.
- 35 -
4.2) PERCENT ANALYSIS OF PROFIT AND LOSS ACCOUNT
NATIONAL BANK OF PAKISTAN
PROFIT AND LOSS ACCOUNT
For the year ended 31st December 2006
2,223,927 2,371,546
- 36 -
Taxation-current 7,154,002 8,695,598 21.54
Through percent analysis we know that interest earned increase 29.96% while the interest expenses
increase 32.1%. Net mark up increases 62.06%. Total markup interest income increase 36.9%. Profit
before tax increase 38%. While profit available for appropriation increase 54.25 that shows sound
financial position of the NBP the main reason of its strong position is that its expenses are low and its
income is more.
- 37 -
4.3) VERTICAL ANAYSIS OF BALANCE SHEET 2006
NATIONAL BANK OF PAKISTAN
BALANCE SHEET
As at 31st December 2006
LIABILITIES
- 38 -
Reserves 12,354256 13,879,260 2.185
Vertical analysis compares each amount with a base amount selected from the same year. As clear from
above that cash and balance with other bank are 12.4% of total Assets. While balances with other bank
are 6.34% of total asset. Deposits in other account are 79.2% of Assets. Other data is also calculated in
the same way.
- 39 -
NATIONAL BANK OF PAKISTAN
PROFIT AND LOSS ACCOUNT
For the year ended 31st December 2006
- 40 -
Taxation-current 7,154,002 8,695,598 19.86
Through vertical analysis of above profit and loss statement we know interest earned is 100% while
interest expenses are 31.13% of interest earned. Provision against non performing advances is 2.51%
and total non-markup income is 88.56% while total non-markup interest expenses are 31.13%. Profit
before tax is 60.08%. While profit after tax is 21.21%. Profit carried forward is 44.24%. Financial
position of NBP is strong in 2006 as compare to 2005 because its profit is more in 2006.
- 41 -
BALANCE SHEET
As at 31st December 2006
LIABILITIES
- 42 -
Total shareholder equities 75,817,674 81,954,118 108.1
Horizontal Analysis compares each amount with a base amount for a selected base year. Cash and
balances with treasury banks increase 110.43% of the 2005 level in 2006. Balances with other banks
increase 131.02% in 2006. In the same way other data analyze.
- 43 -
PARTICULAR 2005 2006 Horizental
(Rs. In “ooo”) (Rs. In“ooo”) Analysis
- 44 -
Markup return/interest earned 33,692,665 437,88,628 129.96 %
- 45 -
Basic earning per share (Rs.) 17.92 24.1 134.48
Horizontal analysis of profit and loss show interest earned increase 129.96% of the 2005 level in 2006.
Interest expenses increase 132.1% in 2006.provision against non-performing advances increase 125.71
%.
- 46 -
CHAPTER 5
RATIO ANAYSIS
- 47 -
CHAPTER 6
SWOT ANALYSIS
On the basis of "SWOT" analysis, one can analyze the present status and
performance of an organization and can make conclusions and recommendations.
The "SWOT" analysis consists of four words that are S, W, 0 & T, which stand for
Strengths, Weaknesses, Opportunities and Threats respectively.
National bank TIP branch Haripur is only public sector bank in the area of TIP.
●Nationalized Bank:
Being a nationalized bank the Govt. support to NBP, is the major strength of
NBP.
●Monopolistic hold:
The NBP have monopolistic hold by capturing the govt. accounts and
maintaining the confidence of the individuals by Govt. support.
- 48 -
●Others strengths:
Something an organization is good at doing is termed as its strength. NBP's other
strengths are:
Handling thousand of customer per month
●Shortage of Staff:
In National bank TIP branch thousand of customers per
month which is quite difficult to manage but shortage of staff is problem in the
branch.
●De Motivation:
De motivation in employees is one of the main problems in NBP TIP branch
Haripur. Employees don’t have there keen interest in their jobs because of contract
base job.
- 49 -
●Lack Of idea Generation:
For the success of any organization the main thing is idea, the organizations
who concentrate on idea generation activities are most successful. National bank TIP
branch is lacking in idea generation because employee are not trained and don’t have
sufficient knowledge to give suggestion and new ideas to expand the business for the
bank.
6.3) OPPORTUNITIES:
An external situation, which an organization can benefit from, is called
opportunity for that organization. NBP can grab the following opportunities:
●Support of SBP:
The SBP is providing complete Support to the NBP by its different policies
and other supporting activities.
- 50 -
●Better competitive position:
Having monopolistic hold on the economy the NBP gain competitive edge
over other banks, the bank maintain better financial as well as physical and other non
physical advantages.
●Market Recognition
For the second consecutive year, NBP was recognized as the best bank in
Pakistan by the prestigious periodical, “The Banker" UK (a subsidiary of Financial
Times Group).
6.4) THREATS:
An external situation posed to harm organization's interests is regarded as
threat to that organization. NBP worries about the following;
●Globalization:
In the era of globalization the bank is now going to face tuff competition with
multinational banks, which are interested in opening their branches in Pakistan.
●Increase in competition:
The increasing competition in local as well as national and multinational level
also lower down the profitability of the bank and compelling the bank to use a large
amount of funds to meet out competition.
● Privatization:
Privatization policy of the Govt. also create tuff times for the bank because of
this reason the bank is going away and away from the Govt. support during hard
times.
- 51 -
The SWOT analysis is a mirror to the bank of its present condition. From this
analysis, we can conclude that the bank has done some professional changes in its
banking system. But still there are chances for improvement. The management can
develop elaborate strategic plans for capitalizing the available opportunities. One area
where the bank has done some work is the improvement in customer services. But to
get the desired results, the bank should develop long-term objectives and prepare
appropriate courses in order to achieve them.
The bank should maintain principle of professional management and adhere to the
sound and sophisticated banking rules and regulations to build confidence of the
people in the institution.
- 52 -
CHAPTER 7
SUGGESTIONS AND RECOMMENDATIONS
7.2) Technology:
By the use latest technology and software’s, bank can satisfy their customers
more efficiently and effectively. Bank can offer their services online as private
banks.
7.4) Coordination:
National bank TIP branch Haripur is lacking coordination among the employee’s
that create many conflicts. They must provide the environment in which they can
discuss their problems and give suggestions to solve particular problem.
- 53 -
7.6) Feed back System:
To keep track of the employee’s behavior with the customer their must be
efficient and effective feed back system through which customer can give feed back
about the employee’s behavior ,bank services and products of the bank. This system
help’s management to take corrective decisions to overcome particular problems and
can monitor the over all performance of the employee’s and the bank.
7.10) Motivation:
Human need appreciation in every aspect of their life. Employee’s must be
motivated and appreciated by the management to boost their moral time to time. This
will result in loyalty and improve the performance of the staff.
- 54 -
BIBLIOGRAPHY
- 55 -