National Bank of Pakistan

Updated on Dec 19, 2023

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Type Government ownership Headquarters Karachi, Pakistan Owner Government of Pakistan		Traded as KSE: NBP Founded 1949, Karachi, Pakistan Motto Your Premier Bank

Industry BankingCapital Markets Key people Muneer Kamal, ChairmanMasood Karim Shaikh, Acting President Products Loans, Credit Cards, Savings, Consumer Banking Revenue ₨53.72 billion (US$510 million) - 2015 Subsidiaries National Bank of Pakistan Employees Benevolent Fund Trust

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The National Bank of Pakistan (NBP) is a major Pakistani commercial bank with headquarters in Karachi. Although state-owned it operates as commercial bank, while still continuing 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.

The bank provides both commercial and public sector banking services. It is a lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services. As of 2012 it has 1,280 branches across Pakistan with assets of approximately USD 12.293 billion. It also operates a number of office overseas that include Beijing, Tashkent, Chicago, London and Toronto.

National Bank of Pakistan has developed a wide range of consumer products, to enhance business and cater to the different segments of society and meet its social responsibilities. Some schemes have been specifically designed for the low to middle income segments of the population. 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. It has also put in place a remittance service for overseas Pakistanis to send their money back to Pakistan.

The bank also runs the Annual Awards for Excellence in Literature that confer awards to the best books in Urdu and in all prominent regional languages. The Bank is also the largest sponsor of sports in Pakistan.

History

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.

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.

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).

Operations

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 saw significant growth between 2000 and 2006. In 2006, total assets were 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. 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. It ranges from providing credit to the unbanked market segment under NBP Karobar, to small and medium enterprises, to agricultural loans, to large corporate customers.

It has taken various measures to facilitate overseas Pakistanis to send their remittances. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances.

Subsidiaries

The NBP's subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Leasing 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 National Bank of Pakistan & Fullerton Fund Management of Singapore).

International offices

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

NBP also has branches /offices in the United States, UK, Canada, Germany, France, Bahrain, Egypt, Bangladesh, Hong Kong, Japan, South Korea, The People's Republic of China, Afghanistan, Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan, Azerbaijan and Saudi Arabia.

Islamic banking

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, eighty Islamic banking branches are functional across 50 cities over Pakistan having Group office at Karachi and Lahore, Pakistan.

Mufti Waqar Ahmed Ehsan is Shariah Advisor.

Dr. Imam Uddin is Member Shariah committee

Mr. Ameen Ul Azam Kwhaja is Group Chief of the Islamic Banking Group.

Mr. Kamran Masood is Regional General Manager.

Mr. Syed Muhammad Shahid is Operations Coordinator and Controller of Branches.

Engr. Muffaz Rana is a Branch Manager at Islamic Banking Branch - DHA, 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.

References

National Bank of Pakistan Wikipedia

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