National Bank of Pakistan

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National Bank of Pakistan
Type Government
Traded as KSENBP
Industry Banking
Capital Markets
Founded 1949
Headquarters Principal Office, Karachi Pakistan
Products Loans, Credit Cards, Savings, Consumer Banking etc.
Revenue IncreasePKR 50.569 billion (US$ 815.6 million) (2007)[1]
Net income IncreasePKR 19.034 billion (US$ 307 million) (2007)[1]
Owner(s) Government of Pakistan
Website www.nbp.com.pk

National Bank of Pakistan (NBP) is one of the largest commercial bank operating in Pakistan. It has redefined its role and has moved from a public sector organisation into a modern commercial bank. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, NBP headquarters in Karachi, Pakistan with over 1,280 branches country wide (in December 2012). The bank provides both commercial and public sector banking services. It has assets worth USD 12.293 billion in 2007.[1]

The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen.

In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange.

National Bank of Pakistan has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.

It has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self-employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need arose.

It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt.

A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the upgradation of the IT infrastructure and developing the human resources.

National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing, Tashkent, Chicago and Toronto . It has agency arrangements with more than 3000 correspondent banks worldwide.

The Bank's financial performance has been remarkable. In 2006, total assets are estimated at PKR 635 billion, while deposits have grown to nearly PKR 502 billion. Pre-tax profit rose to PKR 26 billion. Earnings per share have jumped to PKR 24.01 in 2006. The increase in profit was achieved through strong growth in core banking income. Interest income increased by PKR 10 billion through growth in the loan portfolio as well as increase in spreads. Advances increased by PKR 48 billion to PKR 316 billion. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration. It ranges from providing credit to the un-banked market segment under NBP Karobar, to small and medium enterprises, to agricultural loans, to large corporate customers.

Subsidiaries[edit]

The NBP's subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty, Kazakhstan. The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore).[2]

International offices[edit]

National Bank of Pakistan branch in Washington, D.C.

There Have been numerous people who have launched these branches, out of which many CEO'S and Ex CEO's have played a role to establish them, especially Mr.Saeed Ahmed Kazi.

Timeline[edit]

  • 1949 National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance of 1949 and was government-owned. NBP acted as an agent of the central bank wherever the State Bank did not have its own branch. It also undertook government treasury operations. Its first branches were in jute growing areas in East Pakistan. Offices in Karachi and Lahore followed.
  • 1950 NBP established a branch in Jeddah, Saudi Arabia.
  • 1955 By this time NBP had branches in London and Calcutta.
  • 1957 NBP established a branch in Baghdad, Iraq.
  • 1962 NBP established a branch in Dar es Salaam, Tanganyika.
  • 1964 The Iraqi government nationalized NBP's Baghdad branch.
  • 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities between India and Pakistan.
  • 1967 The Tanzanian government nationalized the Dar es Salaam branch.
  • 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation.
  • 1974 The government of Pakistan nationalized NBP. As part of the concomitant consolidation of the banking sector, NBP acquired Bank of Bahawalpur.
  • 1977 NBP opened an offshore brain Cairo.
  • 1994 NBP amalgamated Mehran Bank.
  • 1997 NBP branch in Ashgabat, Turkmenistan commenced operations.
  • 2000 NBP opened a representative office in Almaty, Kazakhstan.
  • 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan International Bank, of which NBP would own 45% and United Bank 55%.
  • 2002 Pakistan International Bank renamed itself United National Bank Limited (UNB). The ownership structure of the UNB remained as before. The only change to the shareholding structure is that UNB had recently been privatized in Pakistan and was now owned 49% by the Government of Pakistan and 51% by a joint foreign consortium of Abu Dhabi.
  • 2003 NBP opened its branch in Kabul, and the first ATM in Afghanistan was installed there.
  • 2005 NBP closed its offshore branch in Cairo.
  • 2010 NBP opened its branch in Karaganda (Kazakhstan.
  • 2011 NBP opened its representative office in Toronto (Canada).

Islamic banking[edit]

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

  • Two more branches started operations by the end of 2007 in Peshawar and Lahore.
  • At present, eight Islamic banking branches are functional all over Pakistan having Group office at Karachi, Pakistan.
  • Mufti Abdul Sattar Laghari is a Shariah Advisor.
  • Mr. Shafiq Khan is newly appointed Group Chief of the Islamic Banking Group.
  • Mr. Sarfaraz Ahmed is Business Head.
  • Mr. Syed Muhammad Shahid is Operations Coordinator and Master Trainer for HR.
  • Engr. Muffaz Rana is Operations Officer at Islamic Banking Branch - 2140 - Karachi. He has a Telecommunication Engineering degree from FAST-NU, MBA in Finance from SZABIST, NIBAF in IBCC from State Bank of Pakistan, PGD in IBF from Centre for Islamic Economics & JAIBP from Institute of Bankers Pakistan accredited by UK’s Chartered Banker Institute.

See also[edit]

References[edit]

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