Introduction of National Bank Of Pakistan:

National Bank of Pakistan is one of the largest commercial bank operating in

Pakistan. It has redefined its role and has moved from a public sector
organization into a modern commercial bank. 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 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. NBP headquarters in Karachi, Pakistan with over 1,200 branches

country wide. The bank provides both commercial and public sector banking services. It has
assets worth USD 12.293 billion in 2007. Its subsidiaries include NBP Capital, NBP
Modaraba Management Company, NBP Exchange Company, Taurus Securities, NBP Almaty
and others.
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/Islamabad/Lahore
Stock Exchanges.
National Bank of Pakistan is today a progressive, efficient, and customer focused
institution. It 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 Advance Salary, NBP Saiban, NBP Kisan Dost, NBP
Cash n Gold.
The bank 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.

The bank 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. Bank has been signing different
agreements with other leading players in the remittance field for ensuring that
remittance services are available to most of the overseas Pakistanis.
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 up-gradation of the IT
infrastructure and developing the human resources.

National Bank of Pakistan has built an extensive branch network of 1310+ branches in
Pakistan and operates in major business centre abroad. The domestic branch network has
been automated and is online. The Bank has representative offices in Beijing, Tashkent,
Chicago and Toronto. It has agency arrangements with more than 3000 correspondent banks
worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP
Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty,
Kazakhstan. It has recently opened a subsidiary in Dushanbe, Tajikistan.
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).
History:
The history of National Bank of Pakistan is part of Pakistans struggle for
economic independence. National Bank of Pakistan was established on
November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order
to cope with the crisis conditions which were developed after trade deadlock with
India and devaluation of Indian Rupee in 1949. Initially the Bank was established
with the objective to extend credit to the agriculture sector. The normal
procedure of establishing a banking company under the Companies Law was set
aside and the Bank was established through the promulgation of an Ordinance,
due to the crisis situation that had developed with regard to financing of jute
trade. The Bank commenced its operations from November 20, 1949 at six
important jute centers in the then, East Pakistan and directed its resources in
financing of jute crop. The Banks Karachi and Lahore offices were subsequently
opened in December 1949. The National Bank of Pakistan came forward to
establish its offices in the Cotton growing areas and extended credit facilities
liberally in order to restore stability to the market. In 1951, the country was once
again faced with a crisis in the cotton trade when prices was crashed and
touched the lowest level since independence following the cessation of hostilities
in Korea. The bank in collaboration with the cotton board provided the necessary
Credit facilities to the trade and the crisis was tided over. The nature of
responsibilities of the Bank is different and unique from other banks/financial
institutions. The Bank acts as the agent to the State Bank of Pakistan for

handling Provincial/Federal Government Receipts and Payments on their behalf.

The Bank has also played an important role in financing the countrys growing
trade, which has expanded through the years as diversification took place.

The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The bank operates
1249(2008) branches in Pakistan and 22(2008) overseas branches. Under a trust Deed, the
bank also provides services as trustee to National Investment Trust (NIT) including safe
custody of securities on behalf of
NIT. The National Bank of Pakistan has assets worth Rupees 737976.44 million on
September 30, 2008.[ii]
National Bank of Pakistan is today a progressive, efficient, and customer focused institution.
It 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 Saibaan, NBP Kisan Dost, and NBP Cash n Gold.
The National Bank of Pakistan 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 up gradation of the IT infrastructure and developing the human resources.
National Bank has earned recognition and numerous awards internationally. It has been the
recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker
Magazine, the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and 2007,
Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global
Finance, Kisan Time Awards 2005 for NBP's services in the agriculture field. It is listed
amongst the Region's largest banks and also amongst the largest banks in South Asia 2005,
The Asian Banker. It has also been presented a Recognition Award 2004 for having a
Gender Sensitive Management by WEBCOP AASHA besides other awards.[iii]
The precise summary of National Bank of Pakistan regarding its countrywide and overseas
operations is as fallows:

1949 National Bank of Pakistan (NBP) was established under the National Bank of
Pakistan Ordinance 1949 and was 100% govt.-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.

The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4, 1947
by the former Bahawalpur State

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 (est. 1947).

1977 NBP opened an offshore brain Cairo.

1994 NBP amalgamated Mehran Bank (est. 1991).

1997 NBP's 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%.

2003 NBP received permission to open a branch in Afghanistan.

2005 NBP closed its offshore branch in Cairo.

Vision:

To be recognized as a leader and a brand synonymous with trust, highest standards of service
quality, international best practices and social responsibility.

Mission:

NBP will aspire to the values that make NBP truly, the Nations Bank, by;

Institutionalizing a merit and performance culture.

Creating a distinctive brand identity by providing the highest standards of services.
Adopting the best international management practices.
Maximizing stakeholders value.
Discharging our responsibility as a good corporate citizen of Pakistan and in countries
where we operate.

Core values:

Highest standards of Integrity.

Institutionalizing team work and performance culture.

Excellence in service.
Advancement of skills for tomorrows challenges.
Awareness of social and community responsibility.
Value creation for all stakeholders