VISION & GOALS OFNATIONAL BANK OF PAKISTAN

“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.”

MISSION STATEMENT OF NATIONAL BANK OF PAKISTAN

To be recognized in the market place by Institutionalizing a merit & performance culture, creating a powerful & distinctive brand identity, Achieving top-tier financial Performance, and Adopting & living out our core values

PRINCIPAL BUSINESS OF NATIONAL BANK OF PAKISTAN

PRICIPAL BUSINESS

As it was already discussed in the history of the National Bank of Pakistan that the primary objective of setting the National Bank of Pakistan was to purchase the jute from the formers of the East Pakistan, as India refused to lift the Jute. The National Bank of Pakistan was exclusively engaged in the purchase of Jute till June 1950. Later on it begin to perform the commercial banking functions in the country.

Its Principal Business is simply to lend and borrow, and for that lending and borrowing they use different ways and techniques to attract their customers, due to strong competition within the country. Day to day many Programs are introduced by the National Bank of Pakistan according to different needs of customers for lending purpose. Such as,

NBP CASH  GOLD

Meet your need for ready cash against your idle gold jewelry with no minimum or maximum limits. Facility of Rs. 5000/- against 10 grams of gold, Mark-up 9% per annum, no maximum limit of cash, repayable after one year, roll over facility, no penalty for early repayment.

NBP ADVANCE SALARY

“NBP advance salary “product alone has attracted approximately 300,000 customers. 15 months salary in advance (certain conditions apply), minimum documentation, repayable in 5 years, no processing charges; no collaterals, no guarantees, no insurance, Mark-up charged at 13% per annum on reducing balance method.

DEPOSITES

These are the savings/ money submitted by the people with the bank, for fetching some return or for the purpose of safety and security. There are various types of deposits, such as SAVING, FIXED OR TERM, CURRENT, ETC.

SAVINGS DEPOSITS

These deposit fetch returns upon them these are basically introduced to inculcate habit of savings in the general masses and to invest and reinvest the saved money. These deposits get return on the basis of announced rate for these deposits and that rate is according to the economic activity and net profit earned by the organization in fact this is a profit and loss sharing mode, but the history or till the introduction of these deposits, the depositors never share a loss. There are certain rule of the game viz. there is restrictions upon frequency of withdrawal and amount of withdrawal i.e. you can not withdraw more than twice a week and in case of amount more than 10000/= you have to submit prior notice. In fact these are not practiced at the moment because customer does not want to bound himself in such things and want to avail of the facilities of the account along with return, there are restrictions of keeping the minimum balance otherwise service charges are

Imposed, further you have to open with at least RS.3000/= which is now a days relaxed up to 200/= for opening the teachers accounts.

CURRENT DEPOSITS

these accounts were basically introduced for the business firms and persons who frequently use their account and want to avail of banking facilities of remittances, collection transfer of funds, safety security etc. these were basically in contrast to the saving accounts as these did not offer any restriction in terms of withdrawals and amount. These accounts does not fetch any return on them because you are allowed to take your money at any time so bank does not get enough time to invest the amount for longer period. More over this account was basically as mentioned above, was introduced for the business men, and provide them other facilities apart from return; state bank of Pakistan is taking steps to make it mandatory to provide return upon minimum balance and current account. The current account is opened in the name of individuals, proprietary firms, partnership firms, private limited companies, clubs, associations, societies and other institutions. The account can be operated by single or two or more persons jointly as the instructions may be given at the time of opening the account. No profit is given on current deposits. If the person who wants to open the account is not in a position to sign or his signature is not firm or shaky, the bank requires his photographs and he has to present Cheques personally at the counter for withdrawals from his account. The initial amount of deposits with which he can open the             account must not be less then Rs.1000/= But his restriction is not imposed to the accounts of charitable institutions.

FIXED OR TERM DEPOSITS

These deposits are basically saving deposits and meant for inculcating the habit of saving for longer periods and provide chance for the bank to invest in a long term project or plan. These fetch comparatively high returns than the other deposits because of longer time periods. These are available for THREE, SIX –MONTHS AND FOR ONE, TWO, THREE, FOUR, AND FIVE YEARS. These have got a maturity date on which principal and mark up amount is to be provided to the depositor. This also has got a slight modification in shape of MIS (monthly income scheme) this is also a term deposit scheme but one can earn profit on monthly basis instead getting the same along with principal amount on maturity. In the case of fixed deposit account deposit is made for a fixed period and money deposited can be withdrawn before the expiry of period fixed or before giving an advance notice to the bank. Fixed deposit caries a higher rate of interest than the other type of bank account, and the rate of interest rises with the length of the period and the amount of deposit. On opening a fixed deposit account the bank grants to the depositor a “Fixed Deposit Receipts (FDR)” which is not transferable to any other person. When the deposit is with drawn the receipt must be handed back to the bank.

PLS ACCOUNTS

The silent features of profit and loss sharing saving accounts to be opened in NBP are as under.

1.         These accounts can be opened by individuals in their own single or joint names. The PLS. saving accounts can also be opened for provident fund or other benevolent funds of

2.         Companies, firms, organizations of welfare and educational institutions.

3.         PLS. Saving account can be opened with a minimum amount of Rs.500/- only.

4.         Money can be with drawn form PLS saving account with prior notice if heavy amount is involved.

5.         To share in the profit a minimum balance of Rs.500/- must be maintained in account. The minimum balance on sixth and last of month will qualify for the profits.

6.         The profit will be calculated on the basis of monthly minimum balance for the period of six months i.e. from January to June and July to December.

7.         The head office of NBP determines the profits or loss on PLS saving deposits and advises its branches the rate and time of distribution of these profits concerned PLS. saving account.

8.         With drawls from PLS saving accounts are allowed not
oftener then 8 time in a calendar month and for a total amount not exceeding Rs.1500/- for withdrawal of a large amount seven days notice in writing is required to be given. This notice shall not how ever affect the monthly with drawls ordinarily

allowed. In the even of contravention of rule, depositors shall forfeit his right to share profit for the notice period shall be deducted from his total profit earning products.     

9.         There shall be no restrictions on maintaining the maximum balance in PLS saving account.

10.     On the fist of Ramzan every year the Zakat 2.5 % will be recovered from the deposits on the balance of that day. But if depositors give declaration of Zakat or he is non-Muslim no Zakat will be recovered from him. In the same day Zakat is not recovered from account in which the balance are below up to prescribed limit as declared by the administrator of Zakat Pakistan. This system of accepting deposits has been stated in NBP since 01.01.1981.

FOREIGN CURRENCY DEPOSITS

1.         NBP has also introduced foreign currency accounts for Pakistan and foreign Nationals in Pakistan and abroad. This scheme assures its customers of better profit and superior service.

2.         It offers Pakistani or foreign National to operate a foreign currency A/C with any one of their authorized branches spread all over the country.

3.         Deposits of this accounts will be acceptable in all convertible currencies, but accounts will be maintained on the customers choice in US $, British pond, German mark or Japanese yen.

4.         Deposits may be made in the forms of remittances in foreign currencies,

Travelers Cheques on the bank counter will be accepted.

1.         The customer can make with drawls and transfers to anywhere in the world.

2.         All the deposits and profits in the customer’s foreign account are exempted from Zakat, income or wealth tax.

3.         The customer’s sources are protected from any scrutiny of concerned authorities.

The NBP has over 1189 branches in Pakistan, of these more than 100 branches are authorized and fully equipped to deals with all kinds of foreign currency transaction. NBP has worldwide network of branches and it has associates in Saudi Arabia bank, All Jazira (18 branches) to facilitate the customers in Pakistan, Saudi Arabia and UAE.    

LETTER OF CREDIT

Letter of credits are promises or guarantee to some of amounts to the importers or exporters or to their agents on accomplishment of certain agreement. These are also offered by the National Bank of Pakistan in shape of import and export L/Cs. So as to boost up country’s trade and improve foreign exchange reserves to enhance country’s exports and to introduce them world wide.

CREDITS

These are the various advance or finance facilities issued to the borrowers to carry on or to meet their business requirements. These are extended in three modes as explained above which are. SHORT TERM- MEDIUM TERM AND LONG TERM, which caters to the needs of clients according to their requirements.

TRAVELERS CHEQUES

These are the modern tools which enable clients to carry money from one point to another with complete safety and security. These available in various denominations ranges from RS. 5000/= to 100000/=. They provide you guarantee of payment even case of lost or theft. They are available for inland transfer of money as well as for abroad where ever the branches of National Bank are available and at other places through the agency arrangements.

NBP also provides different other services, such as