National Bank Of Pakistan

BACKGROUND National bank of Pakistan (NBP) was developed in 1949. It served as the central regulatory bank of Pakistan till the time State Bank of Pakistan was established in 1949. National bank of Pakistan is the complete government bank and it undertook government treasury operations. The two major competitors of national bank of Pakistan are united bank limited (UBL) and Habib bank of Pakistan. The first branch was open in I.I Chandigarh road Karachi. And after, they make it the head office of the bank.

INTRODUCTION National Bank of Pakistan is the Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner for the Government 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. In modern business services provided by organizations are termed as Products. At NBP groups conceive and design the products, which are approved by the higher management. At this point, Information Technology Group get involved in designing the software in well mannered and working hard, which is backbone needed to launch the products. The hardware and database requirements are discussed, finalized and implemented after approval of the president of the bank. A scenario was explained to us for understanding the whole process. When Credit Card System was finalized for launch by higher management, information technology group designed, implemented the related software solution. It also handled the access to the central databases for credit reports. Training was also provided to the bank staff for effective working. The Boards of Director choose Syed Ali Raza as the President of the national bank of Pakistan in 2005. Ant still S. Ali Raza is performing their job as president of the national bank of Pakistan and also the Chairman. National bank of Pakistan (NBP) is governed by Board of Directors.

Board of Directors  S. Ali Raza (Chairman & President)  Dr. Waqar Masood Khan (Director)  Iftikhar Ali Malik (Director)  Syed Shafqat Ali Shah Jamote

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(Director)  Mohammaad Zubair Motiwala (Director)  Sikandar Hayat Jamali (Director)  Azam Faruque (Director) National Bank of Pakistan (NBP) provides Services through more than 1200 branches in Pakistan and 22 branches in overseas with more than 120,000 employees. National bank of Pakistan (NBP) is the only Pakistani bank to have representative offices in Canada, China and Uzbekistan. The economic potential of these locations is enormous. National bank of Pakistan (NBP) was the first international bank to open its branch in Kabul in October 2003. The Chart elucidates the broader working scenario. Head office at Karachi plays as a central point. Administratively working of the bank is divided into Groups. They are subdivided into Wings. The area of operation is divided into 29 regions. Domestic Branches:    

29 Regional Offices 1,189 Branches 143 Online Branches 4 Subsidiaries

Overseas Branches:  16 Overseas Branches  4 Representative Offices  1 Subsidiary 1 Joint Venture

National Bank of Pakistan (NBP) have achieved bank of the year Award-2001, 2002, 2004 & 2005 by the Banker. It has also achieved best foreign Exchange bank in Pakistan 2006 by Global Finance, Kissan Time Award 2006 (For its services in the Agriculture sector) and Best bank in the Emerging Markets from Pakistan in 2006 by Global Finance.

The VISION of the NATIONAL BANK OF PASKITAN: To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.

The MISSION of the NATIONAL BANK OF PAKISTAN: NBP will aspire to the values that make NBP truly the Nation’s Bank Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate.

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The CORE VALUES of the NATIONAL BANK OF PAKISTAN:  Highest standards of integrity.  Excellence in services.  Awareness of social and community responsibility. National bank of Pakistan (NBP) clearly defines the Social responsibility in every task of the bank. It performs the Social responsibility within the Country and outside the country with great efforts and authentic form. In social responsibility NBP have no particular interest, but because for the sake of society, NBP perform their social responsibility with pure heart and soul. Because of the “NATION’S BANK”, we care our people.

STRUCTURE OF THE NATIONAL BANK OF PAKISTAN In National Bank of Pakistan, the head is called “Chairman” or “President” of the Bank. And after President there is Five Broad of Directors. National Bank of Pakistan has eleven Groups which control the working of the Divisions, Wing, Department, Section and Regional of the national bank of Pakistan. In NBP, “Department” is called “Wings”. Chairman & President

Board of Directors

President’s Secretariat

Secretary Board of Directors

Corporate & Investment Banking Group

Credit Management Group

Audit & Inspection Group

Compliance Group

HRM & Administration Group

Operation Group

Commercial & Retail Banking Group

Treasury Management Group

Special Assets Management Group

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Overseas Management Group

I.T. Group

National bank of Pakistan divided their task in to separate jobs. Basically national Bank of Pakistan having different groups, and each group perform different task specialization in their department. National Bank of Pakistan Categories their departments through their work specialization. And NBP hire their employees also through work specialization. The following Chart shows the Work Specialization in the bank. HRM & Administration, Operation, Commercial & Retail Banking, and I.T Group are performing different working in the Organization.

HRM & Administration Group

Commercial & Retail Banking Group

Operation Group

I.T. Group

National Bank of Pakistan is structurally divided into Groups and groups are also subdivided into Departments, Wings, and Divisions. National Bank of Pakistan has different Department in the Group and each department performing work, as their task assign. Department also subdivided into working bases. National Bank of Pakistan is divided their group in to Functional bases department or Wings. Through this employees were concentrate their working and they work efficiently and effectively. In Credit Management Group, there are different wings, which perform different works, as their function assign.

Credit Management Group (Functional Deptt)

Administration Wing

Industrial Research Wing

Credit Monitoring Wing

Credit Policy & SME Wing

1. GEOGRAPHIC DEPARTMENT National Bank of Pakistan (NBP) provides Services through more than 1200 branches in Pakistan and 22 branches in overseas. National bank of Pakistan (NBP) is the only Pakistani bank to have representative offices in Canada, China and Uzbekistan. The economic potential of these locations is enormous. National bank of Pakistan (NBP) was the first international bank to

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open its branch in Kabul in October 2003. The area of operation is divided into 29 Regions. NBP divided their groups in to different geographic location.

Special Assets Management Group (Geographic Deptt)

SAMG - North (Lahore)

SAMG – South (Karachi)

SAMG – Head Office

2. PROCESS DEPARTMENT National Bank of Pakistan divided their Group in to their process wise. In Compliance Group, there is different process department or Wing, which control the process of the Group.

Compliance Group (Process Deptt)

Administration Wing

SBP Inspection

Market & Liquidity Risk

Credit Risk

3. CUSTOMER DEPARTMENT: National Bank of Pakistan grouped according to the type of customer. Hence Customer Departmentalization can be defined as grouping jobs according to the common customers or the types of customers served by an organization. National Bank divided Operation Group into Different Department or Wing.

Operation Group (Customer Deptt)

Customer Facilitation & Admn.

Customer Services 5 & Govt. Business

Financial Institutional & Cash Manag.

National Bank of Pakistan (NBP) provides Services through more than 1200 branches in Pakistan and 22 branches in overseas. And there are 29 Regions. All Branches of National Bank of Pakistan report to five Head of RMT Members. And these five members reported to regional Offices. Regional Offices report to the Group Chief of the Groups. All the process is working very quickly and it not consume more time. And the Group Chief of each Group Report to the President of the National Bank of Pakistan. All the data were proceed to the President of the bank.

Chairman & President

Operation Group Chief

Audit & Inspection Group Chief

HRM Group Chief

Compliance Group Chief

South Region

North Region

West Region

East Region

Overseas Reg

Head 1

Head 2

Head 3

Head 4

Head 5

Branch 1

Branch 2

Branch 3

Branch 4

Branch 5

National Bank of Pakistan is relatively Wide span of control and Flat Structure. National Bank of Pakistan are less layers of management to pass a message through, so the message reaches more employees faster. More skillful Group Chief Managers can control a greater number of employees. National Bank of Pakistan assess that the internal Control environment is showing signs of improvement as compared to previous year in all areas of the Bank.

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Chairman & President

HRM Group

OD Wing

IRD Wing

T & S Wing

TMG

CMG

Operation Group

Tech Wing

C. M Wing

Admn. Wing

C. M Wing

Admn. Wing

National Bank of Pakistan is having Decentralization in the Bank. And give the authority of Decision Making to their Group Chief of every Group, to take decision, which is benefit for the Organization. National Bank of Pakistan provides facility of making decision to their Senior Vice President as well as Vice President of the every Group. ]

President (NBP) Group Chief (Group) SVP or VP (Group) AVP (Group) Grade Officers (Group)

National Bank of Pakistan has low Formalization in the bank. And Employees are free to take action or decision in their work specialization. Employees are follow the rules and regulation in the bank is very little formalized. Employees’ behavior is little bit guided by rules and regulation. National Bank of Pakistan follow the Organic Model Organization. In NBP, there are CrossFunctional teams, as well as Cross-hierarchical teams. There are free flow of Information and Wide span of Control. NBP is Decentralization in nature and very low formalization in the bank. 7

Basically National Bank of Pakistan is high Diagonal Differentiation and every employee of any department can easily communicate to other department of the Bank.

CONTINGENCY VARIABLE AFFECTING STRUCTURE The Structure of National Bank of Pakistan is affecting the Contingency Variable in some cases. Strategy of the bank can affect the structure of the bank. Some year later, bank has a Strategy that Branch report to Region and Region report to Zone and Zone report to Head and after Head report to Group Chief of particular Group. But national Bank of Pakistan Analysis the Strategy and Change the Strategy. Still national Bank did not have any Zone layer. When State Bank of Pakistan, imposed an order to every bank, that each bank open an Islamic Banking Division. So through technology, Structure should be Change and affect the NBP Structure.

SOCIAL RESPONSIBILITY OF THE NBP The Bank has nurtured a strong commitment towards the community. The bank’s sponsorship and participation in a variety of community activities are clear manifestation of discharging our responsibility as a good corporate citizen of Pakistan. Our efforts are a reflection of our commitment to our country and our responsibility to work for its welfare and advancement. National bank of Pakistan (NBP) is also playing an active role for promoting sports in the country and sponsored many events during the years. The main task of our Bank to Awareness of the social responsibility and operate it, being a good citizen.

EDUCATION 1.1 QARZ-E-HASNA FUND Qarz-e-Hasna is a fund, which provided to the student for the higher study. Basically when any students who weak in financially, bank give Qarz-e-Hasna loan and after completion the bachelor

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or master, they repay the payment in specific time period. In this, there isn’t any type of interest on the loan. It is the State bank of Pakistan scheme. The working relating to Qarz-e-Hasna scheme was attended by Pakistan Banking Council (PBC) since inception. PBC was dissolved in January 1997. In order to fill the void created by the dissolution of PBC and in order to continue the scheme, SBP decided to entrust all funds and transfer all record relating to Qarz-e-Hasna scheme for education to the bank with the instructions to perform all work relating to the fund. Till January 1997, bank was performing their responsibility in a good manner. It is totally socially working. Bank has not any interest in this scheme but because bank is care our people and that’s why, bank practice their responsibility with authentic form.

1.2 STUDENT LOAN Student loan is not same as Qarz-e-Hasna. It is the scheme of the NBP, Which provide student loan for those people who have not enough money to admission in the university. It is only apply on the Government Universities. Bank gives many loans to Karachi university students, or like Sindh medical college students. Bank gives student loan to one of the student of Dow medical college, who are less money but having great knowledge about the course. Same as it is bank give another loan to the NED university student, who also have high percentage but weak in financially. This is on merit bases. And student repayments the loan in specify time. This program hoped to encourage talented students to apply by reaching out to them and providing them an opportunity to pursue a professional degree at one of Pakistan’s premier academic institutions. 1.3 FEMALE EMPOWERMENT-NBP COMMITMENT “We Grow and Prosper Together” was the theme of the conference on Female Empowerment-NBP Commitment, held in Islamabad at a local hotel on 2007. NBP organize the conference just for the empowerment of women, or specially those who are live in remote areas. Prime Minister of Pakistan, Mr. Shaukat Aziz, was the Chief Guest and chaired the inaugural session. NBP welcomed all guest and Prime minister of Pakistan. NBP declined the key objectives set for the conference:  Discuss the challenges of Female Empowerment and NBP’s experience of Gender Sensitive Management.  To learn from the successful experience of NBP towards female empowerment.  To evolve cross sectional support for a new paradigm.  Looking Towards the Future. Syed Ali Raza (President & Chairman of the bank) highly valued the worth of women’s role in the economic development and nation building and confirm this a survey was conducted

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amongst female employees of the bank to gauge, how they feel about taking up challenging responsibilities. Their response was positive and female employees perception was that they were underutilized and are ready to take position that are more challenging.

SPORTS Physical activity is essential for everyone. It Builds self Confidence and can be an excellent group activity for your family and friends. Exercise is an activity that transcends age. The NBP sports Complex is at your disposal and we encourage you and your family to utilize the facility. 2.1 A STATE-OF-THE-ART SPORT COMPLEX Recently, Mohammed mian Soomro, the caretaker prime Minister of Pakistan, performed the formal inauguration of the National bank of Pakistan (NBP) Sport Complex in Clifton. Sindh Governor, Dr. Ishrat-ul-Edab khan, provincial minister and Governor of State Bank of Pakistan, Dr. Shamshad Akhtar have also graced the occasion. The Caretaker Prime Minister in his inaugural speech had stated that the whole NBP sport Complex was very well planned and deserved compliments for the architecture that made optimum use of the space. He also says that Health and sports compliment each other because healthy minds and bodies are less susceptible to ailments. So the Bank organizes and develops the sport complex for the sake of society and those people who are not avail the healthy life. The NBP chief was of the view that the sports wing of his Bank was the most organized one in the country. He said the NBP sponsors sports in all parts of the country and provides jobs to sportsmen. Syed Ali Raza said that to tap the talent, the NBP has been organizing coaching camps for crickets, hockey and football in various parts of the country at the grassroots level.

2.2 SOCCER The Pakistan Premier League (PPL) is the first division of Pakistani football. It was established in 2004, in place of the National Championship by the Pakistan FootBall Federation. It was a knock-out competition, which remained this way until it was replaced by the Football League in 2004. Football in Pakistan remained underdeveloped for decades due to mismanagement, lack of support and corruption. However in August 2003, with the support of FIFA under their ‘Goal Project’, and new management within the Pakistan Football Federation, Pakistan restructured the national football system. The National Football Championship was replaced in 2004 by the national football league, called the National Division. National Bank of 10

Pakistan is Sponsor pakistan premier league in 2004, 2005, 2006, 2007, 2008. NBP want to be Healthy peoplewho take part in every activity, and watch them the domestic soccer. National bank of pakistan mostly sponsor the domestic Football league. NBP promote the youngster who have talented.

2.3 HOCKEY Pakistan Hockey Federation has named a panel of Technical Officials to conduct All Pakistan NBP Junior Hockey Cup to be played at the Hockey Club of Pakistan Karachi from November 28 to December 5. The competition will be organized by National Bank of Pakistan. Gulfraz Ahmed Khan, Honorary Secretary Karachi Hockey Association, will be the Organizing Secretary of the tournament. The technical briefing meetings will be held by the Tournament Director on November 2007. National Bank of Pakistan is great emphasis on Hockey Cup in domestic basis. And NBP promote the culture of Hockey Matches on Domestic as well as all over the world.

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CRICKET

National Bank of Pakistan (NBP) is Sponsors different Cricket events on Domestic bases. The list of those events is as follow:

    

Inter-Region Under 19 Tournament 2007/08 Inter-Region Grade II Tournament 2007/08 Inter-District Under 19 Tournament 2007/08 PCB National Schools Under-17 Women's Championship 2007/08 Inter-District Senior Tournament 2007/08

NBP organize through sponsorship to those events and also participate in these events. NBP also organize or sponsor International Cricket events in Pakistan.

DONATION 3.1 LAYTON REHMATULLAH BENEVOLENT TRUST LRBT is committed to creating a better Pakistan by preventing the suffering caused by blindness and other eye ailments. To this end it will provide state of the art comprehensive free eye-care in keeping with its tradition of excellence, efficiency and compassion for all. LRBT treats 30% of 11

all eye patients visiting OPD & performs 26% of all eye surgeries in Pakistan. LRBT also conducts 44% of pediatric surgeries in the country. The Founders wanted that all treatment at LRBT be focused on the poor and be totally free so that no man, woman or child should become blind just because he or she cannot afford the treatment. Treatment should be appropriate state of the art. Charity does not mean second-rate. There should be no discrimination due to gender, caste, ethnicity, language, religion or sect. Patients should be treated with compassion and dignity. National bank of Pakistan donate amount every year to year. And take part in the activity of that trust.

3.2 ZINDAGI TRUST We will be a leader in providing opportunities to a better life through education to the underprivileged working children of Pakistan Zindagi (Life) is inspiring. Its inspiration lies in the unique experiences we go through daily. Some of them are sweet and some bitter. We try to undo the effects of the bitter ones by either forgetting them or by extending a helping hand to the ones who are suffering. Its only then that we know how many other hands are there to join in for the cause, its only then that we realize how many more hands are needed. or my recordings, I have to go to many strange places. One of them was in the desert. I was there with my team to shoot the video for “La Ilaha Illallah”. It was an honor for me to sing the poetry of Iqbal, poetry that talks about the sovereignty of Almighty Allah. During the filming of the video, I learned things about Thar. The most painful for me was the vulnerability of Thar’s children to poverty, malnutrition and poor health. I saw innocent and beautiful children drinking contaminated water from a well where birds and animals were lying dead. I couldn’t believe my eyes. I couldn’t take this image out of my mind. I wanted to help them. Children are the most beautiful part of all societies. They are the builders of a nation’s future. Their positive energies and combined strength promise future growth, stability and progress in a country. Ignoring children is ignoring our future.

National bank of Pakistan (NBP) also donates 1,000,000 rupees to Zindagi trust every year. 3.3 AUJ INTERNATIONAL Auj International, Karachi is a General Magazine and covers various matters of public interest like interviews of prominent personalities, scientific features, educational survey, etc. They wish to cover a number of other aspects of the Society. A donation of Rs. 200,000/- was approved by the banks management to the above magazine which was ratified by the Board of Director. National bank also donates various amount of money in the different events which organize by Auj international.

3.4 SHADE ORGANIZATION Dedicated to eradicating melanoma through the education of children and the community in the prevention and detection of skin cancer and the promotion of sun safety. A donation of Rs. 12

50,000/- was made in the name of “Shade Organization” for arranging matrimonial ceremony for destitute/orphan girls at Sialkot. National bank donates with open hearted.

3.5 TAALEEM FOR ALL TRUST Taaleem for All Trust is an initiative to address the dismal state of education in Pakistan, aimed specifically towards accelerating the spread of primary education in Pakistan through the concept of non-formal schooling. The Trust has a very wide scope of activities that comprises of a comprehensive campaign for social improvement through public awareness. National Bank of Pakistan Donate some amount to Taaleem trust for the social welfare.

3.6 INSTITUTE OF TECHNOLOGY PAKISTAN AERONAUTICAL A donation of Rs. 499,600/- was made to institute of technology Pakistan Aeronautical Complex, karma for purchase of 5p-IV computers and 2 printers with the approval of the operations committee which was subsequently ratified by the Board of Director.

PRESIDENT RELIEF FUND FOR EARTHQUAKE VICITIMS – 2005 On 8 October 2005, an Earthquake is come in the northern area of Pakistan. And all Pakistani are going in to shock of the big damage in Pakistan. All over the Pakistan people help these effected people. The National Bank of Pakistan (NBP) has announced a relief package for the earthquake victims. The Bank has donated Rs. 35 million to President’s Relief Fund for Earthquake Victims - 2005. The employees of the Bank have also voluntary donated one-day’s basic salary to the Fund. NBP has initiated the process of formation of Special Teams at local level for providing on the spot financial and other aid in earthquake-affected areas. Special arrangements have made for collection of donations at all domestic and overseas branches. An “Emergency Relief Committee” has been formed which is empowered to provide immediate relief in terms of blankets / tents / food / medicines for the NBP employees and their dependents affected by the earthquake. For providing relief to the people in the wake of recent Earthquake in Pakistan and to mobilize resources and proactively rendering a helping hand in the relief efforts to the people affected by the Earthquake all branches of National Bank of Pakistan have opened account of “PRESIDENT’S RELIEF FUND FOR EARTHQUAKE VICTIMS - 2005” and payments into the aforesaid fund are accepted by issuing receipts duly signed by Branch Officials, as per prescribed format.

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NON-PROFITABLE BRANCHES In Remote Villages national bank of Pakistan perform their service in well mannered form. And doing working hard for the benefit of the people who live at their. But in some villages because there are no more people living their, that is why NBP have no Profit on those branches. Basically NBP perform their service for the sake of those people who live their and NBP want to upgrade those villages to the city life.

PENSION PLAN National Bank of Pakistan is only bank who pay their pension on monthly bases and take no profit. Basically pension is the obligation of State bank of Pakistan, but SBP give the duty to NBP, is to pay the Pension to the retired government employees on every month.

CONCLUSION In my point of view, the social responsibility that bank do are “Proactive Approach”. And the thing which I like it very much is the Donations. Bank gives Donation in very big amount and Support all the events indirectly. Because of the Only Government bank with wide range of network bank operate the pension to the all retired government employees. This is the good thing. Basically National bank of Pakistan wants to awareness of Social responsibility in the society and also wants a wealthy nation. That is why we call it “THE NATIONS BANK”. The Sport facility provided bank to the society is very pro-active, and NBP sponsor small and big events of the sports. Since the creation NBP organize more 10,000 matches of the cricket in the Domestic or International bases. And Still NBP sponsor the Football Premier league in the domestic soccer.

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