Research Analyst
Oct 10 - 16, 2011

National Bank of Pakistan (NBP) is the largest commercial bank operating in Pakistan. 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 SBP, it has diversified its business portfolio. The bank is today the lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and 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 image of public sector bank.

The bank offloaded 23.2 per cent share in the stock market, and while it was not completely privatized like the other three public sector banks, partial privatization took place. It is now listed on the Karachi/Islamabad/Lahore stock exchanges.

NBP has built an extensive branch network with over 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. Its 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.

National Bank of Pakistan is 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 the 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, Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, and public transport scheme. The bank has expanded its range of products and services to include shariah compliant banking products.

NBP recently initiated the annual awards for excellence in literature. The bank is also the largest sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need arises.

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.

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.

The bank's pretax profit for the half year 2011 was Rs11,659 million, same as last year's level. Earning per share stood at Rs4.81 compared to Rs4.65 of corresponding period last year. Pretax return on equity stood at 22.6 per cent whereas pretax return on assets was at 2.2 per cent.

The bank's net interest income increased by Rs1,947 million or 9.4 per cent from corresponding period last year. Administrative expenses increased 12 per cent in line with inflation and salary increases. Provision charge against advances showed an increase by Rs1,745 million or 60.6 per cent mainly on account of further downgrading of existing NPL portfolio as well as fresh accretions.

Non-performing loans (NPL) increased Rs22 billion and it included element of circular debt. Deposits at Rs831 billion were same as that at end of December 2010.


NBP has earmarked Rs158 million for flood relief activities in the country. The bank has distributed cumulatively more than 24,750 ration bags in all the flood-affected areas, more than 7,554 tents have been erected, more than 27 medical camps established in which 20,690 patients get treatment.

In addition, 2,000 mosquito nets have also been distributed among the flood victims. Due to the presence in remotest areas, the NBP has been successful in reaching far-flung areas of Sindh. It is estimated that in Hyderabad region alone, the bank has distributed more than 17,450 ration bags, containing food commodities.

In Sukkur, the NBP has distributed more than 7,100 ration bags in more than 33 villages and 27 camps. In the recent floods, the NBP has opened a collection account for the Prime Minister's flood relief fund 2011, while the account has also been opened in all domestic and international branches of the NBP.

The NBP has earmarked Rs141.5 million for flood-affected people, out of which Rs25 million has been contributed in the Prime Minister relief fund; Rs50 million for medical camps and ration bags and Rs66.5 million for tents.

Apart from Rs141.5 million, the bank staff has contributed Rs16.774 million from their salaries to the Prime Minister's flood relief fund. This amount is in addition to Rs141.5 million paid by the bank. Besides, the bank is also sponsoring programs through electronic channels as telethons to attract more and more funds.


Total assets 1,045,175,697
Total liabilities 918,723,542
Total equity 126,452,155