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SWOT Analysis of NIB Bank
SWOT Analysis of NIB Bank
NIB bank provides services to more than 450,000 customers through a countrywide network
of 179 branches all over Pakistan. It is one of the fastest growing banks in Pakistan.
NIB started operations in October 2003 with a paid up capital of Rs. 1.2 bn. Operations for
NDLC, IFICs Pakistan and Credit Agricole Indosuez Pakistan were amalgamated with their
assets and liabilities in April 2004.
Temasek Holdings acquired 25% shareholding in NIB in March 2005 through Bugis
Investments which was enhanced to over 70% in June 2005.
A SWOT Analysis
A SWOT analysis guides us to identify the positives and negatives inside our organization (S-
W) and outside of it, in the external environment (O-T). Developing a full awareness of our
situation can help with both strategic planning and decision-making.
The SWOT method was originally developed for business and industry, but it is equally
useful in the work of community health and development, education, and even personal
growth.
SWOT is not the only assessment technique we can use, but is one with a long track record
of effectiveness. Compare it with other tools found in the Community Tool Box to determine
if this is the right approach for our situation. The strengths of this method are its simplicity
and application to a variety of levels of operation.
A SWOT analysis can offer helpful perspectives at any stage of an effort. We can use it to:
SWOT also offers a simple way of communicating about our initiative or program and an
excellent way to organize information we've gathered from studies or surveys.
SWOT Analysis of NIB Bank
1. Internal
Strengths
Weaknesses
2. External
Opportunities
Threats
Internal Analysis
Strengths
Strength can be defined as an area where a company is best at doing something or a feature
that puts a company at an advantage in comparison to its competitors. NIB Bank enjoys the
following strengths.
The Standard of service is very good and customers are satisfied with that service.
NIB is the 7th largest bank in Pakistan with over 240 branches.
NIB banks ATMs are linked with a number of leading local and foreign banks.
Automated Systems made NIB Bank to rise with the pressure of rising competition.
The employers at NIB are offered reasonable monetary benefit. Normally two
bonuses are given Eid ul - Fitar & Eid ul - Azha.
NIB bank has well established website and is up to date about the bank.
Financial Sustainability
When nib merges PICIC commercial and PICIC investment in it than the old
employees become part of the NIB.
Those employees need great deal of training and development. As they are doing
conventional banking and NIBs slogan is relationship base banking.
Online recruitment (unable to collect a pool of candidate because net is not available
everywhere in the country).
Branch manager cannot fire any employee on his bad performance as they hired as
permanent employees.
NIB Bank rely on borrowing and contributions to fund their asset growth.
In some regions, urban areas of Pakistan service of NIB Bank is not good as
compared to other privatized banks
Opportunities
An opportunity can be defined as a change in external environment, which if properly
exploited with the organizational strengths will result in enhanced sales, market share, or
income. Using its strengths, NIB Bank can avail the following opportunities.
In the economy of Pakistan where other banks are very carefully lending the
different loan NIB giving personal loan in huge quantity. This will result in great
market share in future.
Provide focal point for identifying and acting on obstacles to or opportunities for city
and city enterprise borrowing.
Proper orientation of employees in all branches can help them to cope up with
foreign banks.
As a Bank, NIB has business relationships covering a very large fraction of the
economy in the country. These relationships make the perfect partner to drive the
initial free registration of businesses.
Already many huge banks are doing business in the banking sector.
The bank is facing threats with the emergence of new competitors especially in
terms of foreign banks.
Systemic investment risks (tariffs set by local radas; all cities rely heavily on Inter-
governmental transfers)
Reliance on market interest rates and maturities may make loans unaffordable