TOPIC:

Banking Sector of National Bank of Pakistan

PRESENTATED BY:

Mateen BUttL-827

INTRODUCTION:National Bank of Pakistan is the largest commercial bank operating in Pakistan

The bank is engaged in providing commercial banking and related services in Pakistan and overseas.

The Bank's services are available to individuals, corporate entities and government.

its business portfolio is a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services

NBP headquarters in Karachi, Pakistan with over 1,280 branches country wide.

VISION:"To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility."

MISSION:NBP will aspire to the values that make NBP truly the Nation’s Bank, by:Institutionalizing a merit and performance culture.

GOALS: To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.

Excellence in Direction Excellence in Growth Excellence in Performance Excellence in Management Excellence in Achievement 

OVER VIEW OF THE ORGANIZATION:

CORPORATE & INVESTMENT BANKING GROUP

CREDIT MANAGEMEN

T GROUP

AUDIT & INSPECTION GROUP

COMPLIANCE GROUP

PRESIDENT’S

SECRETARIAT

BOARD OF DIRECTOR

HRM & ADMINSTRATIO

N GROUPOPERATION

GROUP

COMMERCIAL & RETAIL BANKING GROUP

TREASURY MANGEMEN

T GROUP

SPECIAL ASSET

MANAGEMENT GROUP

Overseas Management

GroupI.T. GROUP

SECRETARY BOARD OF DIRECTOR

CHAIRMAN & PRESIDENT

ORGANIZATIONAL STRUCTURE:

ORGANIZATIONAL NETWORK:BRANCH NETWORK:-10 Groups headed by SEVPs/EVPs. 9 Regions reporting to as many Regional Chiefs and 15 Single Branch Zones headed by Zonal Chiefs; 12 corporate branches and 1,280 domestic branches headed by Branch Managers control its field operations.

GLOBAL NETWORK:- 18 Oversea Branches5 Representative Offices1 overseas Subsidiaries Joint Venture.

DOMESTIC NETWORK:-1280 Domestic Branches6 domestic Subsidiaries 29 domestic regional offices DOMESTIC SUBSDIARIES:NBP Capital Ltd.Taurus Securities Ltd.NBP Exchange Company LtdNational Agricultural and Storage company Ltd.Cast – N- Link Products Ltd

SERVICES OF BANKING Its accepts deposits Give Loan Clear Cheque Safe Money Pay interest

MIS IN BANKING SECTOR The MIS is followed by different banks in

Pakistan where various works are being done every bank effectively.

There are major information systems which are going to be discussed-

Management Information System Knowledge management system Decision Support System Transaction Processing System

MANAGEMENT INFORMATION SYSTEM Management Information System (MIS)  is  a management  system  that  is  used  by many banks in developed countries nowadays to improve  the banking service  and  support decision - making process. The Islamic banking is considered as one of the fast growing industry in the financial and banking sector.

THE EVALUATION OF MIS IN BANKING SECTOR

PURPOSE OF MIS IN BANKING SECTOR Online service Financial service ATM service Account management Personal management Analyzing and processing data

HARDWARE RESOURCES Personal computer scanners Printers Network cards Currency counter

SYSTEM SOFTWARE IN BANKING SECTORApplication Software Microsoft Office ERP SAP ORACLE OUTLOOK(mail)

System Software Operating System(Windows XP ) For PC’S Windows 2003 server for mainframes

COLLECTION AND STORE DATA

CollectionFrom online servicesFrom accumulation customer dataFrom customer feedback systemStoreHard Disk driveInternetOther optical storage

BENEFITS OF MIS IN BANKING SECTOR Increase customer satisfaction Improved quantity and quality of

information Improve decision making system Support DSS(Decision support system) Improve operational efficiency and

flexibility

TRANSACTION PROCESSING SYSTEM Transaction-processing systems are

used widely today. Banks use them to record deposits and payments into accounts. Supermarkets use them to record sales and track inventory. Managers often use these systems to deal with such tasks as payroll, customer billing and payments to suppliers.

DECISION SUPPORT SYSTEM IN BANKING SECTOR

A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions.

Decision Support System is a general term for any computer application that enhances a person or group’s ability to make decisions.

KNOWLEDGE MANAGEMENT IN BANKING SECTOR

KNOWLEDGE MANAGEMENT IN BANKING SECTOR Scope and relevance The banking sector is always targeted to improve their customer satisfaction that will result in revenue increasing. The process of Knowledge creation, storage and dispersion becomes essential and banks assign specialized personnel to watch over and manage these critical processes.

THE MOST COMMON FIELD OF KNOWLEDGE MANAGEMENT APPLICATIONS IN A BANKING SECTOR

Risk management Marketing management Customer relationship management

CUSTOMER RELATIONSHIP MANAGEMENT It supports in effective marketing and service

processes. It can able to do effective customer relationship by

providing right leadership, strategy and culture. Provides better customer services. Make call centres more effective. Help close staff close deals faster. Discovers new customers Increasing customer revenue.

CUSTOMER RELATIONSHIP MANAGEMENT

DEPARTMENTALIZATION:

COMMERCIAL & RETAILING

DEPARTMENT

ACCOUNTS DEPARTMENT

GOVERNMENT DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

CREDIT AND ADVANCE DEPARTMENT

GENERAL BANKING DEPARTMENT

NBP DEPARTMENTS

1. GENERAL BANKING DEPARTMENT:

General banking involves the following sections:

•Deposit Section•Accounts Opening Section•Cash dealing Section•Clearance Section•Remittance Section•Lockers Handling Section

2. ADVANCE DEPARTMENT:

TYPES OF ADVANCES:DEMAND FINANCE:CASH FINANCE:RUNNING FINANCE:LOANS:

TYPES OF LOAN:The credit department of NBP has providing the following types of loans•Short term loans •Long term loans •Working capital loan•Syndicate (project) loan

3. ACCOUNTS DEPARTMENT: The main function of account department of NBP is to maintain general ledger accounts and after the business hours the function of the account officer is to close books.

4. BILLING & GOVERNMENT RECEIPT/ PAYMENT DEPARTMENT:

In this department all types of Government receipts i.e. Revenues, Taxes, Agriculture Tax, Government Fees, EOBI Funds and Utility Bills are deposited.

1 Payment of provident Fund 2 Payment of pension 3 Collection of utility bills, property taxes, Challans and dues of educational institution. 4 Payment of salaries 5 Payment of zakat

5. FOREIGN EXCHAGE DEPARTMENT:-The foreign exchange department has four main parts on which the national bank works. It consists of:I.   Imports and Exports.II.   Foreign remittance.

 

6. COMMERCIAL & RETAIL BANKING DEPARTMENT:National Bank of Pakistan serving following product lines:

1) PREMIUM AAMDANI SCHEME: - Monthly Income Scheme

2) PREMIUM SAVER SCHEME:- Yours saving reward (PLS Saving Account) 3) ASAAN SCHEME: - Open the Door to Your Dream Home (Home Financing)

Main features of this scheme are as under.•Finance is available for:•Home Purchase•Home Construction •Home Renovation•Purchase of Land + Construction

CONCLUSION: The challenge it is facing is currently the lack of

implementation of rules and regulations that may lead to weak organizational culture, old organizational culture, no regular promotions practices and not much use of IT technology in bank as other are using.

As analysis shows that NBP is a most growing organization with highest return on capital, largest market share amongst all Pakistani banks and cost to income ratio is the highest in banking sector. But there is further need for improvement to overcome weaknesses and to maintain its position as an “Asian Tiger” in banking field.