Professional Documents
Culture Documents
Presented By:: Comsats Information Technology Wah Cannt Rawalpindi
Presented By:: Comsats Information Technology Wah Cannt Rawalpindi
And
First step to talk……
To
All those from whom I learnt
Who always remains?
In our heart
Through out the whole span of our life and are
Nearest, dearest and deepest
To us
CONTENTS
INTRODUCTION TO NATIONAL BANK………………….1
MISSION STATEMENT……………………………………..2
SERVICES OFFERED BY NATIONAL BANK…………….3
FEATURES…………………………………………………...4
BRANCH LEVEL HEIRACHCY…………………………….5
OPERATIONS MANAGEMENT…………………………….6
FOREIGN EXCHANGE DEPARTMENT………………........7
OTHER RETAIL FUNCTIONS………………………………8
DOCUMENTARY CREDIT…………………………………..
SENIOR MANAGEMENT…………………………………….
DIRECTOR’S REPORT…………………………………………
FINANCIAL HIGHLIGHS……………………………………..
CORPORATE INFORMATION………………………………..
SWOT ANALYSIS…………………………………………….
CREDIT DEPARTMENT………………………………………
GUIDE LINE OF CREDIT POLICY………………………….
CREDIT CYCLE………………………………………………
ATM FINDER………………………………………………….
NBP PRODUCTS……………………………………………….
COLLECTION POLICY………………………………………..
TECHNOLOGY…………………………………………………
NOTICE OF 55TH ANNUAL GENERAL MEETING………….
BALANCE SHEET………………………………………………
PROFIT & LOSS STATEMENT…………………………………
To be the pre-eminent
financial institution in
Pakistan and achieve market
recognition both in the
quality and delivery of service
as well as the range of
product offering
INTRODUCTION
National Bank of Pakistan maintains its position as 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.
INTERNATIONAL BANKING
NBP offers:
New Features:
Using the NBP network of branches, you can safely and speedily transfer money
for our business and personal needs.
MODE OF
CALCULATION:
AVERAGE BALANCE
DURING A
CALENDAR MONTH
INTERNATIONAL BANKING
NBP offers:
Agricultural Credit
National Bank’s leadership in loan
(Medium Term):
• Production and development syndicating stems from ability to
• Watercourse improvement
• Wells Forge strong relationships not
• Farm power only with borrowers but also with
• Development loans for tea bank investors. Because we
plantation understand our syndicate partners’
• Fencing asset criteria, we help borrowers
• Solar energy meet substantial financing needs
• Equipment for sprinklers by enabling them to reach the
banks most interested in lending
Farm Credit: to their particular industry,
geographic location and structure
NBP also provides the following through syndicated debt offerings.
subsidized with ranges of 3 months Our syndication capabilities are
to 1 year on a renewal basis. complemented by our own capital
strength and by industry teams,
• Operating loans who bring specialized knowledge
• Land improvement loans to the structure of a transaction.
• Equipment loans for
purchase of tractors, farm Cash Management
implements or any other Services:
equipment
• Livestock loans for the With National Bank’s Cash
purchase, care, and feeding Management Services (in process
of livestock of being set up), the customer’s
sales collection will be channeled
through vast network of NBP
Production Loans: branched spread across the
country. This will enable the
Production loans are meant for customer to manage their
basic inputs of the farm and are company’s total financial position
short term in nature. Seeds, right from your desktop computer.
fertilizers, sprayers, etc are all They will also be able to take
covered under this scheme. advantage of our outstanding
range of payment, ejection,
If you require any further liquidity and investment services.
information, please do not hesitate In fact, with NBP, you’ll be
to e-mail us. provided everything, which takes
to manage your cash flow more
accurately.
FEATURES
National Bank of Pakistan is an established bank. It has some special features with the
help of those it is growing rapidly.
Efficiency
Employees at National Bank of Pakistan are quite efficient. They work more the working
hours and it is all according to their will. It also shows their loyalty, commitment to
organization.
Customer Services
All the customers are entertained individually. Same kind of behavior and attentions is
given to all customers.
Complaint Box
Getting ideas for improvement from the customer side is a new idea and that is working
Employee Benefits
Employees are given the benefits like bonus, gratuity funds, increments, house rents,
medical and conveyance allowances.
In the bank, all the work is done remotely. All the entries are made using the systems
which are internally and externally integrated. This increase efficiency of the bank.
BRABCH LEVEL HIERARCHY
MAIN BRANCH KHECHARY ROAD
MULTAN
OPERATIONS DEPARTMENT
Operations department of the National Bank of Pakistan is responsible for the overall
operations of the bank.
The details of those departments that are controlled under operation department are as
under.
a) Account opening
b) Cash department
c) Clearing
d) Remittances
Current Account
1. No limitation on frequency or amount transaction
2. No profit payable
Saving Account
1. Profit is payable
2. No of withdraw restricted
3. Large amount of withdraws requires 10 days.
General Principles
1. No account will be opened on fictitious name.
2. All documents necessary required for opening account must be taken after
verification from original.
3. No operation of account should be allowed & check book must not be issued until
all formalities are confirmed.
4. Genuineness of introduction should be properly ensured.
5. All information of AOF should be filled at front of concerned officer.
TYPES OF ACCOUNTS
The bank deals in different accounts opening;
1. Individual Account
2. Joint Account
3. Business Account
4. Partnership Account
Clearing Department
Before discussing it is necessary to know what is “Clearing”.
“The process by which cheques exchanged between the collecting and paying bank and
the ensuing financial settlement is called “Clearing”.
This facility is provided by the state bank of Pakistan for offsetting of cross obligations
between the different banks. Clearing is of two types:
1) Inward clearing
2) Outward clearing
Accounts Department
Account department is the most important department of the bank. Because it is
concerned with:
♦ Revenue
♦ Expenses
♦ Assets
♦ Liabilities
These are the pillars of any business. In this department, all the vouchers that are posted
during one day are sent to the account department next day. These vouchers are already
posted to computer by the concerned department.
Types of Account
♦ Current Account
♦ Saving Account
♦ Notice Deposit
♦ Term Deposit
Remittance department
The need of remittance is commonly felt in today’s business. A major function of any
bank is to “transfer of funds from one place to another place” National Bank of Pakistan
Uses the following modes of transfer of funds.
• Demand Draft
• Telegraphic Transfer
• Pay Order
• Call Deposit
• Pay Slip
• Money transfer
COLLECTION DEPARTMENT
All the cheques under collection are called cheques under collection in National Bank of
Pakistan. There are two types of bills for collection:
Outward Bills for Collection
Inward Bills for Collection
FOREIGN EXCHAGE DEPARTMENT
“The transfer of credits to a foreign country to settle debts or account between resident of
home country and those of the foreign country” or “the Foreign bills currencies etc used
to settle such accounts”.
Foreign Exchange department deals within exports imports and Money transfer.
National Bank of Pakistan acts as importer bank as well as exporter bank for different
parties who are interested in the business of export & import.
DEFINE IMPORT
All goods and services brought into a country that were purchased from organizations
located in other countries.
DEFINE EXPORT
All goods and services sent from one country to another country.
After compiling the entire task by resident country that is exporting goods in favor of
foreign importer now it will be his turn to make payment.
TYPES OF LETTER OF CREDIT
Importer bank issues a document on request stating that it will pay the exporter when
exporter fulfill the terms of letter of credit. Letter of credit is of two types:
1. At Usance L/C
2. At Sight L/C
SIGHT L/C
Requires the importer / importing bank to pay as soon as it receives the clean documents
from exporter.
USANCE L/C
It extends time period (30days, 60days, 90days, 120days, 150days, & 180days).to
importing bank for payment. After specified time period importer have to pay.
Letter of guarantee gives in behalf of person that I will pay in case of default.
COVERING SCHEDULE
If in covering schedule, it is given that “Please remit proceed to our Karachi office
account # 574348812 with (Standard Chartered Bank) USA for onward credit to National
Bank of Pakistan.
BENEFICIARY CERTIFICATE
If L/C requires some information as proof of anything from exporter then exporter has to
present beneficiary certificate for that proof.
E-FORM
E-form has four copies:
Bank reporting or duplicate and triplicate is done by bank. Custom officer should clear
product. (Date is given on the foot form).
IMPORTS
L/C is opened by the importer. There are two types of L/C:
a) Revocable L/C
b) Irrevocable L/C
NECESSARY REQUIREMENTS
If place of issue and port of loading is different on bill of lading, then along with the
stamp of shipment on board, vessel name and port of shipment is written.
PAYMENT TO SELLER
The negotiating bank upon receiving the documents from the seller checks the documents
according to terms and conditions of credit upon satisfying it self of this the negotiating bank
makes payment to the seller if sight credit. It then forwards the documents to the opening
bank and reimburses it self through the opening banks account with itself.
DOCUMENTS RECEIVED BY THE OPENING BANK
Importer bank or opening bank receives the following documents from the exporter’s bank or
negotiating bank.
I. Bill of exchange
II. Invoices
III. Bill of lading
IV. Certificate of origin
V. Packing list
VI. Insurance
OTHER RETAIL FUNCTIONS OF National Bank of Pakistan
DOCUMENTS REQUIRED
1. Borrower must be employee of the Federal /Provincial Government / Semi
Government / Autonomous body / NBP.
2. CNIC copies of the borrower
3. Salary Slip indicating detail of salary of the borrower
4. Attested copies of CNIC by gazetted officer
5. Branch has obtained CIB Report of the borrower
6. Branch has obtained duly signed and stamped BBFS.
7. Customer written declaration giving details of all financial institutions.
8. DDO is signature has been verified
9. Loan will be approved after receipt of at least one salary in account.
10. The sanctioned amount of Advance Salary Finance doesn’t exceed 20 times.
11. The expiry of the NBP Advance salary is at least 6-months before retirement.
12. The repayment period does not exceed 60 months.
13. Three undated cross cheques in favor of NBP covering full amount of Finance have
been obtained as security.
14. All documents have been obtained as per the requirement of NBP Advance salary
scheme including undertaking as per scheme.
15. Documents have been recorded in Document Execution Register/ MISC security
Register.
16. NBP offers mark-up 15% on principal amount at fixed rate.
17. There are bi variable rates offered by NBP for this service.
SAIBAAN SCHEME
NBP SAIBAAN DOCUMENTS FOR SALARIED CLASS
• Application form (in original).
• CNIC copies of the applicant.
• Two references CNIC copies.
• Photographs of the applicant(06)
• Employment card copy.
• Appointment letter.
• Service Letter / Certificate.
• Salary cum service certificate.
• Last three Months salary Certificates.
• Branch Account’s statement last six months.
• Last Three Month Utility Bills
• Approved Map
• Original property Documents.
• Aks Sajra.
• Fard Malkiat
• Naqal Intiqal
• Khasra Verification report
• National Evaluation Company’s report.
• PT-I
• Sale Deed/ Registry.
• Processing Fee pay order for Rs.500/=
• Fee for Evaluator pay order ( in case of construction Rs.2000/= (in case of
Purchase Rs.3000/=
• Processing Fee pay for legal opinion order for Rs.1000/=
• Borrower Basic Facts Sheet
• Confidential Report
• ALICO DECLARATION FORM.
NBP SAIBAAN DOCUMENTS FOR BUSINESS CLASS
o Application form (in original).
o CNIC copies of the applicant.
o Two references CNIC copies.
o Photographs of the applicant(06)
o Business Related Documents.
o Last three years Business Record.
o Branch Accounts statement last one year.
o Last three month Utility Bills.
o ICIL- Department Verification ( Income Estimation)
o Approved Map
o Registry / Sale Agreement
o Aks Sajra.
o Fard Malkiat
o Naqal Intiqal
o Khasra Verification report
o NOC
o National Evaluation Company’s report.
o PT-I
o Sale Deed/ Registry.
o Processing Fee pay order for Rs.1000/=financing below Rs. 1 Million.
o Fee for Evaluator pay order Rs.3000/=financing between Rs. 1 to Rs. 4
Million.
o Processing Fee pay for legal opinion order for Rs.6000/= financing above Rs.4
Million.
o Fee for Evaluator pay order ( in case of construction Rs.2000/= (in case of
Purchase Rs.3000/=
o Borrower Basic Facts Sheet
o Confidential Report
o ALICO DECLARATION FORM.
SENIOR MANAGEMENT
Dr. Waqar Masood Khan Iftikhar Ali Malik Syed Shafqat Ali Shah Jamote
Director Director Director
Ekhlaq Ahmed
Secretary Board of Directors
DIRECTOR’S REPORT
On behalf of the Board of Directors it gives me great pleasure to present the annual
accounts for year ended December 31, 2002. National Bank made many strides
during 2002 in positioning for the future both operationally and structurally.
To position the bank for capitalizing on the requirements of the relatively lower
banked sectors, a dedicated Commercial and Retail banking group was created.
Within a short span of time a number of retail products have been launched and the
customer response to these schemes has been very encouraging. New retail
products will be offered to cater the large diversified customer base of over 9 million,
the largest in the country. The success of retail banking is critical to maintaining
interest revenue and enhanced fee income. We are confident that with our large
customer base and delivery capabilities, NBP will emerge as a market leader in the
retail/ consumer business in the very near future.
NBP continues to be the principal bank for handling the government treasury
business. We have also re-activated our subsidiaries catering to non- banking
financial activities. We are also planning to open stand-alone Islamic Banking
branches. Thus, in combination with our very large and diversified banking base we
are truly a universal bank in Pakistan, in a position to offer the entire range of
banking and financial products. We regard this as our key competitive edge.
For overseas operations our focus continues to be on trade financing activity to take
advantage of the bank's presence in most countries (16 countries, 20
branches/offices) which are Pakistan's major trading partners. During 2002 we
established a wholly owned subsidiary in Almaty. Currently we are present in four of
Central Asian countries and our unique representation should provide us with a major
competitive edge in the coming years as the Central Asian countries realize their
economic potential.
Financial Performance
In 2002, NBP increased its pre-tax profit to Rs. 6,045 million from Rs. 3,016 million in
2001, an increase of over 100%. The improved profitability was achieved due to a
combination of higher interest revenue, enhanced fee income and run off of the
amortization of the 1997 Golden Handshake Scheme. Prudent addition to loan loss
reserves was made which continues to improve the cash coverage for non-
performing loans.
All key financial and operating ratios demonstrated improvement. Cost/ income ratio
was 0.44 (excluding one off provision of Rs. 832 million for benevolent fund and Rs.
513 million for charge for special separation package) as against 0.52 of the last
year. Pre-tax return on equity was 45.27% as compared to 25.85% of the current
year and is impressive by any yardstick. Pre-tax return on assets improved to 1.43%
as against 0.77% of last year. Capital adequacy ratio of the bank is 14.5%, which is
38% higher as compared to 10.52% of last year.
Deposits of the bank increased by Rs. 12 billion. While there was increase in private
sector loans due to adjustment / repayment of loans by large public sector entities
and substantially lower commodity operations borrowings, advances decreased by
Rs. 30 billion.
Market Recognition
For the second consecutive year, NBP was recognized as the best bank in Pakistan
by the prestigious periodical, “The Banker" UK (a subsidiary of Financial Times
Group). Furthermore M/s JCR-VIS Credit Rating Company Limited maintained its
rating of AAA, while the standalone rating was raised by one notch to AA-, which is
one of the highest in the banking sector.
Future Outlook
going in 2003, the reduction in the interest rate environment will overall have a
negative impact on the financial sector's profitability in the short term. To meet these
challenges we will focus on building our loan portfolio, both on corporate and retail
side. On the retail side focus will be on additional fee business while maintaining
stringent controls over cost. Longer term we will be focusing on those sectors in the
country, which have traditionally received less attention from the financial sector, i.e.
agriculture, small and medium enterprises and of the entire range of retail products.
Our key strength remains our customer base of over 9 million and we are confident
that we are positioned to capitalize on the opportunities.
National Bank of Pakistan
“KAROBAR”
Under
“President’s Rozgar Scheme”
OBJECTIVE
To launch SUSTAINABLE financial products that are COMMERCIALLY VIABLE for
NBP and the target market i.e. young and unemployed citizens of Pakistan enabling these
citizens to earn at least the minimum wage on a fast track, prudent and transparent basis.
TARGET MARKET
The scheme is offered to:
1. Eligible young citizens of Pakistan falling within an age group of 18-40 years.
2. Unemployed Applicant.
3. Applicant to be residing in the same area/ city for at least 2 years
4. Applicant having CNIC
Deposits 362,866
Advances-net 140,547
Investments-net 143,525
After-Tax
2,253
Profit
No. of
Branch Network 1,204
Branches
Muhammad Sardar SEVP & Group Chief, Audit & Inspection Group
Khawaja
Muhammad Nusrat
EVP & Group Chief, Treasury Management Group
Vohra
COMPANY SECRETARY
Ekhlaq Ahmad
AUDIT COMMITTEE
M. Zubair Motiwala
AUDITORS
Chartered Accountants
Chartered Accountants
HEAD OFFICE
Road Karachi
LEGAL ADVISORS
Strength
Weakness
Opportunities
• Banking industry is one of the most growing sectors in Pakistan. So National Bank of
Pakistan should be continually expanding its network of branches.
• Muslims are consciously differentiating the Islamic-base banking from interest-base
banking. That is why there is large caution of expansion
• Mobile banking should be started to compete in market.
• Establishing foreign branches.
• All products of Consumer Financing that include home financing, and other products
should be introduce to all the braches in the cities of Pakistan.
Threats
• National Bank of Pakistan having large networks of hundred branches that play and
important role in banking business. National Bank of Pakistan compares its working to
other key players in banking industry.
• Many other banks are now involving themselves in consumer financing at competitive
rate. This is one of the biggest threats for National Bank of Pakistan consumer
financing products.
CREDIT DEPARTMENT
Credit means belief or trust. “The quality of being credible or trustworthy”. Other
words we can use for credit as “trust in one’s integrity in money matters and ones
ability to meet payment when due”.
The earning of National Bank of Pakistan is chiefly derived from interest charge
and discounts. This department is the revenue generating department. Credit
department basically has three segments:
Advance department deals with extending loans to customers. State Bank of Pakistan
(SBP) has prescribed regulations which are called “PRUDENTIAL
REGULATIONS”. Every bank has to follow these regulations. If any bank violates
the regulations it should be liable for penalties under the core spirit of SBP
The National Bank of Pakistan limited the credit is extended on the basis of these rules
and regulations. These regulations tells the terms and conditions under which you can
extend loans to the borrower and to what extend.
CREDIT FACILITIES
At National Bank of Pakistan two types of credit facilities are available
1) Funded facilities
2) Non funded facilities
(A) FUNDED FACILITIES
These are the facilities in which there is direct involvement of cash fund.
Following are the funded facilities.
The facilities where there is no direct involvement of banks fund. Following are
the non-funded facilities.
REQUEST
RENEWAL/ RISE
MONITORING
DECISION
DISBURSEMENT OF LOAN
OFFER
WRIT-OFF SECURITY
STEP I
Credit cycle start with request letter. When customer gives a request letter to bank that he
want that much amount of credit from bank.
STEP II
When bank receive the request letter form customer. The officer of credit marketing
department make credit line proposal of client. It is essential that the proposal define clearly
the purpose of facility, the source of repayment, the agreed repayment. Schedule, the value of
security and customer relationship consideration implicit in credit division.
The security to be accepted as collateral for the facility and all the documentation relating to
the security of facility must be in the approved from all the procedures and required
documentation must be completed all these things all feed in CLP.
CLP is basically a medium to present proposal for seeking approval of credit line in client. In
CLP they feed complete data of the client that include:
Credit Limit
Legal status of company
History of relationship / introduction with bank
Line of Business
Background of proprietor / owner / partner
Purpose of facility
Security
Along with it they include borrower basic fact sheet
CCA
Prudential checklist
STEP III
After the processing of information, credit officer decided whether to give credit to that
person or not. They also check whether its security has any market value or not. Decision is
taken by the branch credit committee (BCC ). If the proposal is within the discretionary
powers of committee the proposal may approve after revaluation of credit risk.
It CLP beyond discretionary power of branch credit committee the CLP is sent to credit
division at head office along with supporting documents and recommendation of branch credit
committee.
STEP IV
When decision is made now credit officer offer that we will give you loan up till that limit not
more than that. Up till now credit marketing officer does all the process. After that credit
administration officer’s work start.
STEP V
Here documents are checked security is properly checked by the value. Value tells the
security. Here following characteristic of security are checked.
Market value
Consistency
Salable
Storable
Transferable
Transportation
STEP VI
On completion of legal documents and security arrangements and receipt of completion
certificate from recognized legal counsel, the bank according to the approved schedule
prepared by bank after obtaining confirmation of other payments have been funds from
sponsors other source viz, equity fund from sponsors release of fund by other co financiers
etc. after the valuation of security the loan is disbursed to customer.
STEP VII
Responsibility lies to branch manager to monitor the overall profit and risk aspect of credit
portfolio in accordance with criteria setout in bank’s credit policy. After the disbursement
credit administration officer monitor the performance of customer whether he is fulfilling the
requirement or not. He is paying markup or not for which purpose he has taken the loan
whether he is utilizing loan for that purpose or not.
STEP VIII
After specific time period credit officer see what customer want whether he wants to renew /
revise or writ off it. If he wants to renew it he said to officer to renew it with same limit.
Burewala Multan
Faisalabad Muzaffarabad
Gujar Khan Peshawar
Gujranwala Quetta
Gujrat Rawalpindi
Hyderabad Sheikhupura
Islamabad Sialkot
Karachi Taxila
Lahore Wah Cantt.
Mirpur
NATIONAL BANK OF PAKISTAN’S PRODUCTS
COLLECTION POLICY
The loan officer will be responsible for the collection of finance installments for initial 60 days from the
date of default. After that, the case will be handed over to the collection officer provided by the
Outsourced Collection Agency.
Collection Structure
The country collections Head will manage overall collections. Under the country Head there will be
Regional collections Managers (RCM). The collection officer will directly report to the RCM and
indirectly report to the Branch Manager.
The collection process is to be divided into following four categories:
Front End
Mid Range
Hard Core
Repossession
Selling Skills
The New Model of Selling
Selling has changed dramatically over the last few decades, primarily because customers have
changed
Customers are far more knowledgeable about products and services available today then ever
before.
Competition today is far more stronger than has ever been
There are far more products and services available to satisfy customers needs then ever before
Customers are more sophisticated and demanding then they have ever been, for even the smallest
products
Acceptance- satisfaction a deep subconscious need of every person
Acceptance must be established first
You express your acceptance with unconditional positive regards, no judgment!
Smile be glad to see him or her
Agreeability- one of the most desirable qualities in human relation
Never tell him he’s wrong in his general opinion
If the issue is unimportant, just let it pass
If the issue is important, use third party question to avoid appearing argumentative.
TECHNOLOGY
For technology, existing CAMS systems bas been enhanced / modified in the light of the proposed
scheme. The system is centralized and its database is to be maintained at Head Officer level the I.T system
(CAMS) will be lived at all National Bank of Pakistan online branches
IT platform with specific automation and MIS generation capabilities for the scheme, as under:
o Product type sales i.e. CNG auto Rickshaw, Utility Store & PCO etc.
o Geographical distribution of loans
o Processing Turn Around Time
o Performance evaluation reports on Turn Around Time
o By Classification of applicant
o Loan limits
o Loan tenure
o Mark-up rate wise
o Govt. mark-up share collection and loss sharing reports Etc.
ATM FINDER
Multan
S Telephone -
Branch Location O
No. 061
Qasim Road
1 Qasim Road, Multan Cantt. 9200529 O
Branch
Main Branch, Chowk
2 Main Branch 9200892 O
Hussain Agahi
Gulgasht
3 Gulgasht Colony Multan 9210139 O
Colony Branch
Chowk Nawan Chowk Nawan Shaher,
4 9200872 O
Shaher Multan
NOTICE OF 55 TH ANNUAL GENERAL MEETING
Notice is hereby given that the 55th Annual General Meeting of National Bank of Pakistan, will,
Insha - Allah, be held on Friday, the 30th April, 2004, at 3:00 P.M. (PST) in Crystal Ball Room,
Karachi Marriott Hotel, Abdullah Haroon Road, Karachi.
Ordinary business:
1. To receive and adopt the Audited Accounts of the Bank for the year ended 31st December,
2003, together with the Directors’ & Auditors’ Reports thereon.
2. To appoint auditors for the year ending 31st December, 2004 and fix their remuneration.
3. To consider and approve Cash Dividend @ Rs. 1.25 per share i.e., 12.5% and 20% Bonus
Shares (thereby increasing Paid-up Capital of the Bank from Rs. 4,103,421,850/- to
Rs.4,924,106,220/-) as recommended by the Board of Directors for the year ended 31st
December, 2003 (subject to GoP / Regulatory approvals).
Special Business:
Approval for :
i) Donation of the sale proceeds of 1414 fractional Bonus
shares of 2002 to any charitable trust:
Ratification for :
ii) Donation to Prime Minister’s Flood Relief Fund-2003
iii) One time Grant / Donation to Dr. Muhammad Uzair,
an ex-employee of former NDFC (merged into NBP):
iv) Donation to Special Olympics Pakistan :
15,569,000.00
Total Rs.
15,651,148.50
Rs. 82,148.50
Rs. 15,009,000.00
Rs. 500,000.00
Rs. 60,000.00
(Statement under Section 160 of The Companies
i) The Share Transfer Books of the Bank shall remain closed from 21-04-2004 to 30-04-2004
(both days inclusive). Transfers received at Messrs THK Associates (Pvt.) Ltd., Ground
Floor, Sheikh Sultan Trust Building No. 2, Beaumont Road, Karachi, the Bank’s Registrar
and Share Transfer Agent, at the close of the business on 20-04-2004 will be treated in time
for purpose of the entitlement of Cash Dividend / Bonus Shares.
ii) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint
another member as a proxy to attend and vote on his / her behalf. The Government of
Pakistan and State Bank of Pakistan and any Corporation(s), being member of the Bank,
may nominate any person as its representative to attend the Annual General Meeting under
authority of a Power of Attorney or a Board of Directors’ Resolution. Proxies or nominations,
in order to be effective and valid, must be received at the office of the Bank’s Registrar /
Transfer Agent, Messrs THK Associates (Pvt.) Limited, Ground Floor, Sheikh Sultan Trust
Building No.2, Beaumont Road, Karachi, not less than 48 hours before the time of holding
the Annual General Meeting.The CDC Account Holders and Sub-Account Holders, whose
Registration details are available in the Share Book Detail Report shall be required to
produce their respective Original National Identity Cards (NICs) or original Passports at the
time of attending the Annual General Meeting to facilitate identification. Such Account
Holders and Sub-Account Holders should also bring / know their respective participant I.D.
No. and the CDC Account Number. In case of proxy, he/she must enclose an attested copy of
his / her NIC or Passport. Representative(s) of corporate member(s) should bring usual
documents required for such purpose.
iii) Members are requested to timely notify any change in their addresses to the Bank’s
Registrar / Transfer Agent, Messrs THK Associates (Pvt.) Limited.
i) Donation of net sale proceeds amounting to Rs. 82,148.50 of 1414 fractional bonus shares-2002 to
a charitable trust :
On the basis of operating results for the year ended December 31, 2002, the Board in its meeting
held on April 07, 2003, recommended payment of 12.5% cash dividend and 10% Bonus Shares to
the Bank’s shareholders, which was also approved by the Bank’s shareholders in 54th AGM held on
May 13, 2003.Accordingly, Dividend Warrants and Bonus Shares were issued to the shareholders as
per their entitlement. In this connection, 1414 Bonus Shares, being fractional shares, could not be
distributed to the shareholders. For disposal of these fractional 1414 Bonus Shares a consolidated
Share Certificate No. 052348 in the name of “Secretary (Board), NBP”, was issued which was sold
through a member of KSE, Messrs A. Sattar Motiwalla Securities (Pvt.) Ltd., against net sale
proceeds of Rs.82,148.50 .
On account of high cost of computer printing, post printing, distribution / postage and handling
charges of the fractional coupons, the NBP Board in its meeting held on March 26, 2004 recommended
that the sale proceeds of the fractional Bonus Shares, be donated to a Charitable Trust.In this
connection, approval of shareholders is now being solicited for donating the net sale proceeds
amounting to Rs. 82,148.50 of 1414 fractional Bonus Shares – 2002, to a charitable trust, name of
which will be approved by the President (NBP).
ii) Donation of Rs. 15.009 million to Prime Minister’s Flood Relief Fund-2003:
Prime Minister’s Flood Relief Fund-2003 was established under the directives of SBP to help the
flood affected citizens of Pakistan. An appeal was made by GoP to all Pakistan nationals and
institutions to contribute generously towards this fund.NBP has been contributing towards such funds
in the past and in response to the aforesaid call made a donation of Rs.15.009 million, with the
approval of the Bank’s Operations Committee which was subsequently ratified by the Board of
Directors in its meeting held on September 13, 2003. The cheque was handed over by the President
(NBP) to the Prime Minister to help the flood affected citizens of the country.
The matter is now being placed before the shareholders for ratification in terms of SBP, BPRD Circular
No. 4 dated February 02, 2000.
iii) One time grant / donation of Rs. 500,000/- to Dr. Muhammad Uzair, an ex-employee of former
NDFC (merged into NBP):
Dr. Muhammad Uzair is a renowned scholar who served in various public sector / autonomous
organizations for about 30 years. He unfortunately could not earn regular pension. He is over 70 years of
age and is in dire need of financial assistance.
In recognition of his meritorious services and contributions in the fields of academics, research
and economic management, the Prime Minister of Pakistan on the recommendations of Finance
Minister sanctioned a one time pensionary grant of Rs.500,000/-. As Dr. Uzair has spent nearly
10 years in the former NDFC (merged into NBP), the Finance Minister requested NBP through
GoP, Economic Affairs Division’s letter dated September 15, 2003, to make a matching one time
pensionary grant / donation of Rs.500,000/- to Dr. Muhammad Uzair.
Accordingly, an amount of Rs.500,000/- was paid to Dr. Muhammad Uzair with the approval of
the Bank’s Operations Committee which was subsequently ratified by the Board in its meeting
held on October 17, 2003.
The matter is now being placed before the shareholders for ratification in terms of SBP, BPRD
Circular No. 4 dated February 02, 2000.
The matter is now being placed before the shareholders for ratification in terms of SBP, BPRD
Circular No. 4 dated February 02, 2000.
In this respect the following resolution is proposed to be passed, as an Ordinary Resolution:
“RESOLVED THAT the donation of Rs.82,148.50, being the net sale proceeds of 1414
fractional Bonus Shares – 2002 to a charitable trust, name of which will be approved by
the President (NBP), be and is hereby approved.”
“FURTHER RESOLVED THAT the decisions taken by the Management / Board towards
approving donations aggregating Rs.15.569 Million, as mentioned below, be and are
hereby ratified:
We have reviewed the Statement of Compliance with the best practices (the Statement) contained in
the Code of Corporate Governance (the Code) prepared by the Board of Directors of National Bank
of Pakistan to comply with the Prudential Regulation No. XXIX, responsibilities of Board of Directors
vide BSD Circular No. 15, dated June 13, 2002, Listing Regulation No. 37 of the Karachi Stock
Exchange, and Chapter XIII of the Lahore Stock Exchange and Chapter XI of the Islamabad Stock
Exchange where the Company is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Bank. Our
responsibility is to review, to the extent where such compliance can be objectively verified, whether
the Statement reflects the status of the Bank’s compliance with the provisions of the Code and report
if it does not. A review is limited primarily to inquiries of the Bank personnel and review of various
documents prepared by the Bank to comply with the Code.
As part of our audit of the financial statements we are required to obtain an understanding of the
accounting and internal control systems sufficient to plan the audit and develop an effective audit
approach. We have not carried out any special review of the internal control system to enable us to
express an opinion as to whether the Board’s statement on internal control covers all controls and
the effectiveness of such internal controls.
Based on our review, nothing has come to our attention which causes us to believe that the Statement
does not appropriately reflect the Bank’s compliance, in all material respects, with the best practices
contained in the Code as applicable to the Bank for the year ended December 31, 2003.
M. Yousuf Adil Saleem & Co. Taseer Hadi Khalid & Co.
Chartered Accountants Chartered Accountants
Karachi Karachi
BALANCE SHE E T
as at December 31, 2003
2002
2002 2003 2003
'
US dollars in 000 Note in ' 000
ASSETS
966,294 1,033,967 Cash and balances with treasury banks 6 59,420,502 55,531,453
624,309 420,301 Balances with other banks 7 24,154,070 35,878,101
377,891 525,738 Lendings to financial institutions 8 30,213,352 21,716,802
2,497,455 2,891,943 Investments 9 166,195,619 143,524,971
2,445,642 2,801,365 Advances 10 160,990,265 140,547,374
478,332 381,892 Other assets 11 21,946,846 27,489,021
141,210 155,554 Operating fixed assets 12 8,939,483 8,115,131
Deferred tax assets -
LIABILITIES
Balance as at December 31, 2001 3,730,384 3,109,488 - 3,845,237 521,338 752,226 11,958,673
Profit after taxation for the year
ended December 31, 2002 ----------------------------------------------------------------------------------------------------
2,253,385 2,253,385
Transfer to statutory reserve (225,339) -
-------------------------------------------------------------------------------------------------------------------------
Proposed cash dividend -------------------------------------------------------------------------------------------------------------
(466,298) (466,298)
Transferred to reserve for
issue of bonus shares - - 373,038 - - (373,038) -
Exchange adjustments on
revaluation of capital
of foreign branches - 243,396 - - - - 243,396
Transfer from surplus on revaluation
of fixed assets - incremental
depreciation
- prior year(s) --------------------------------------------------------------------------------------------------------------------------
1,413,2461,413,246
- current year - net of tax -----------------------------------------------------------------------------------------------------------
50,411 50,411
Deferred tax liability recognized
on exchange equalization reserve - (1,173,510) - - - - (1,173,510)
Balance as at December 31, 2002 3,730,384 2,179,374 373,038 4,070,576 521,338 3,404,593 14,279,303
Balance as at December 31, 2003 4,103,422 2,300,903 820,684 4,490,387 521,338 5,897,163 18,133,897
National Bank of Pakistan (the bank) was established under the National Bank of
Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. Its
registered and Head Office is situated at I.I. Chundrigar Road, Karachi. The bank is
engaged in providing commercial banking and related services in Pakistan and overseas.
The bank also handles treasury transactions for the Government of Pakistan (GoP) as an
agent to the State Bank of Pakistan (SBP). The bank operates 1,183 (2002: 1,189)
branches in Pakistan and 16 (2002: 15) overseas branches (including the Export
Processing Zone branch, Karachi). 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 .
2. BASIS OF PRESENTATION
In accordance with the directives of the Federal Government regarding the shifting of the
banking system to Islamic modes, SBP has issued various circulars from time to time.
Permissible form of trade related mode of financing includes purchase of goods by the
bank from their customers and immediate resale to them at appropriate mark-up in price
on deferred payment basis. The purchases and sales arising under these arrangements
are not reflected in these accounts as such but are restricted to the amount of facility
actually utilized and the appropriate portion of mark-up thereon.
US dollar equivalent
The US dollar amounts shown on the balance sheet, profit and loss account and cash
flow statement are stated as additional information solely for the convenience of readers.
For the purpose of conversion to US Dollars, the rate of Rs 57.4685 to one US Dollar has
been used for both 2003 and 2002 as it was prevalent rate as on December 31, 2003.
3. STATEMENT OF COMPLIANCE
standards have been deferred by SBP, vide BSD circular number 10 dated August 26,
2002, for banks in Pakistan till further instructions. However, investments have been
classified in these financial statements in accordance with the format of financial
statements for banks issued by SBP vide BSD circular No. 36 dated October 10, 2001.
Consolidation
The bank accounts for its investments in associates and subsidiaries at cost, except for
quoted associates which are valued at market rates prevailing at reporting date. The
details of these investments are given in notes 9.4 and 9.6.
The bank considers that the effect of consolidation of subsidiaries' financial statements
will not have any material impact on bank's financial position or results and accordingly
consolidated financial statements have not been prepared. The SECP has granted
exemption to the bank from the requirements of sub section (1) of section 237 of the
Companies Ordinance, 1984 vide its letter No. EMD/CO/233/627/2003-1164 dated
August 5, 2003.
Technology
For technology, existing CAMS system has been enhanced / modified in the light of
the proposed scheme. The system is centralized and its database is to be maintained at
Head Office level. The I.T system (CAMS) will be lived at all NBP online branches.
IT platform with specific automation and MIS generation capabilities for the scheme,
as under:
Product type sales i.e. GNG auto Rickshaw, Utility Store & PCO etc.
Geographical distribution of loans
Processing Turn Around Time
Performance evaluation reports on Turn Around Time
By classification of applicant
Loan limits
Loan tenure
Mark-up rates wise
Govt. mark up share collection and loss sharing reports etc