You are on page 1of 2

History of National Bank of Pakistan The history of National Bank of Pakistan is part of Pakistan’s struggle for econom ic independence

. National Bank of Pakistan was established on November 9, 1949 u nder the National Bank of Pakistan Ordinance, 1949 in order to cope with the cri sis conditions which were developed after trade deadlock with India and devaluat ion of Indian Rupee in 1949. Initially the Bank was established with the objecti ve to extend credit to the agriculture sector. The normal procedure of establish ing a banking company under the Companies Law was set aside and the Bank was est ablished through the promulgation of an Ordinance, due to the crisis situation t hat 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, Ea st Pakistan and directed its resources in financing of jute crop. The Bank’s Karac hi and Lahore offices were subsequently opened in December 1949. The National Ba nk 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 m arket. In 1951, the country was once again faced with a crisis in the cotton tra de when prices was crashed and touched the lowest level since independence follo wing the cessation of hostilities in Korea. The bank in collaboration with the c otton 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 uni que from other banks/financial institutions. The Bank acts as the agent to the S tate Bank of Pakistan for handling Provincial/Federal Government Receipts and Pa yments on their behalf. The Bank has also played an important role in financing the country’s growing trade, which has expanded through the years as diversificati on took place.[i] The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The ban k 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) securities on behalf of including safe custody of NIT. The National Bank of Pakistan has assets worth Rupees 737976.44 million on September 30, 2008. National Bank of Pakistan is today a progressive, efficient, and customer focuse d institution. It has developed a wide range of consumer products, to enhance bu siness and cater to the different segments of society. Some schemes have been sp ecifically designed for the low to middle income segments of the population. The se 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 transpo rt scheme. The Bank has expanded its range of products and services to include S hariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature. NBP will conf er annual awards to the best books in Urdu and in all prominent regional languag es published during the defined period. Patronage from NBP would help creative w ork in the field of literature. The Bank is also the largest sponsor of sports i n Pakistan. It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their re mittances in a convenient and efficient manner. In 2002 the Bank signed an agree ment with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introd uces technology based system to handle inward remittances efficiently, by ensuri ng 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 contro l systems with special emphasis on corporate governance, adoption of Capital Ade


NBP acquired Bank of Bahawalpur (est. one in Karachi and one at Chitta gong. National Bank has earned recognition and numerous awards internationally. • 1950 NBP established a branch in Jeddah. The precise summary of National Bank of Pakistan regarding its countrywide and o verseas operations is as fallows: • 1949 National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance 1949 and was 100% govt. Kazakhstan. Turkmenistan commenced operations. 1947). 2004 and 2005 Award by T he Banker Magazine. NBP and United Bank agreed to merge their operations to form Pakistan International Bank. Iraq. • The Bank in 1950 had one subsidiary ‘The Bank of Bahawalpur’ on December4. 2006 and 2007. of which NBP would own 45% and United Bank 55%. • 1962 NBP established a branch in Dar-es-Salaam. Kisan Time Awards – 2005 for NBP s services in the agricultur e field. NBP acted as an agent of the C entral Bank wherever the State Bank did not have its own Branch. 2005. NBP merged wit h Eastern Mercantile Bank and with Eastern Bank Corporation. • 2005 NBP closed its offshore branch in Cairo. Best Emerging Market Bank from Pakistan for the year 2 005. • 1971 NBP acquired Bank of China s two branches. It has also been presented a R ecognition Award –– 2004 for having a Gender Sensitive Management by WEBCOP AASHA be sides other awards. • 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch. At separation of East Pakistan NBP lost its branches there. • 1965 The Indian government seized the Calcutta branch on the outbreak of hostili ties between India and Pakistan. It is listed amongst the Region s largest banks and also amongst the la rgest banks in South Asia 2005.           . • 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. Global Finance. • 1974 The government of Pakistan nationalized NBP. 1991). It has been the recipient of The Bank of the Year 2001. The Asian Banker. It also underto ok Government Treasury operations. 2002. the Best Foreign Exchange Bank –– Pakistan for 2004. • 2003 NBP received permission to open a branch in Afghanistan. Its first branches were in jute growing areas in East Pakistan.quacy Standards under Basel II framework. • 1994 NBP amalgamated Mehran Bank (est. Offices in Karachi and Lahore followed. Saudi Arabia.-owned. 1947 by t he former Bahawalpur State • 1955 By this time NBP had branches in London and Calcutta. in the up gradation of the IT infrastr ucture and developing the human resources. Global Finance. • 1997 NBP s branch in Ashgabat. Tanganyika. • 1957 NBP established a branch in Baghdad. • 1964 The Iraqi government nationalized NBP s Baghdad branch. As part of the concomitant con solidation of the banking sector. • 2000 NBP opened a representative office in Almaty. • 1977 NBP opened an offshore brain Cairo.