National
Bank
of
Pakistan
&
Credit
Agricole
Commercial
Banking
Group
1:
Adam
Ali,
Arsalan
Haider,
Bakhtawar
Amjad,
Bilal
Ahmed
Butt,
Danish
Obaid,
Maryam
Tanveer,
Navaira
Zia,
Raza
Khan,
Rukhaam
Ahmed
and
Suhaib
Ali
Kamal.
National
Bank
of
Pakistan
&
Credit
Agricole
2
Table
of
Contents
1.0 National
Bank
of
Pakistan
1.1 History
and
Background
…………………………………
3
1.2 The
NBP
Group
………………………………………………
4
1.3 Subsidiaries
of
NBP
…………………………………………
5
1.4 Types
of
Funds
………………………………………………..
7
1.5 Timeline
of
Operations
……………………………………
7
1.6 Vision
and
Mission
…………………………………………
9
1.7 Organizational
Structure
………………………………
12
1.8 Application
of
CAMELS
Framework
………………
15
1.9 Competitor
Analysis
……………………………………
22
1.10 Ratio
Analysis………………………………………………
23
1.11 Cross
Bank
Cultural
Comparison
…………………
35
1.12 Recommendations
………………………………………
36
2.0 Credit
Agricole
……………………………………………………
37
2.1 Business
Operations
……………………………………
37
2.2 Global
Positioning….….…………………………………
41
2.3 Events………..………………………………………….……
43
2.4 Other
Line
of
Business
…………………………………
45
National
Bank
of
Pakistan
History
and
Background
The
National
Bank
of
Pakistan
is
one
of
the
biggest
commercial
banks
of
Pakistan.
It
is
ranked
number
one
commercial
bank
of
Pakistan
because
it
offers
a
comprehensive
range
of
commercial
banking
services.
At
first
it
was
claimed
by
the
Pakistan
government,
however,
now
it
has
been
privatized
partially
and
has
proceeded
towards
modernized
commercial
banking.
Incorporated
in
1949,
under
The
National
Bank
of
Pakistan
Ordinance
1949,
the
bank
has
evolved
into
a
modern
all
service
banks.
It
offers
a
complete
set
of
commercial
banking
services
that
have
evolved
from
the
traditional
public
sector
to
the
modern
day
banking
and
include
agricultural
services
to
farmers
all
under
one
bank
which
has
helped
make
it
the
largest
commercial
bank.
Taking
after
the
episode
of
war
in
Korea,
in
1950
Cotton
costs
shot
up
to
exceptional
levels
and
the
credit
facilities
accessible
for
financing
the
development
of
the
cotton
product
missed
the
mark
largely
of
the
requirement.
The
National
Bank
of
Pakistan
approached
to
secure
its
offices
in
the
Cotton
developing
territories
and
amplified
credit
facilities
generously
with
a
specific
end
goal
to
restore
steadiness
to
the
business
sector.
At
first,
NBP
was
supposed
to
be
set
up
at
some
point
in
the
early
1950
yet
the
discriminating
circumstance,
which
was
created
in
the
jute
trade
as
a
consequence
of
India 's
refusal
to
acknowledge
the
exchange
rate
of
the
Pakistani
Rupee,
brought
about
right
premature
initiation
of
the
bank.
NBP
give
banking
services
to
both
the
commercial
and
public
sector.
The
bank
has
greatly
developed
several
consumer
products
that
allow
it
to
cater
to
varying
segments
of
the
society
and
in
turn
increase
profitability.
While
it
keeps
on
going
about
as
a
trustee
of
public
funds
and
as
the
State
Bank
of
Pakistan
agent
(in
areas
not
in
the
vicinity
of
SBP),
it
has
differentiated
its
business
portfolio
and
is
today
a
significant
lead
player
in
the
debt-‐equity
market,
corporate
investment
banking,
retail
and
consumer
banking,
farm
financing,
treasury
services
and
is
indicating
developing
enthusiasm
toward
advertising
National
Bank
of
Pakistan
&
Credit
Agricole
4
and
creating
the
nation 's
SME
and
in
the
meantime
satisfying
its
social
obligations.
Its
subsidiaries
incorporate
NBP
Capital,
NBP
Modaraba
Management
Company.
Head
Office
of
NBP
is
in
Karachi
and
it
conducts
its
business
through
a
vast
network
of
branches
domestically
and
globally
(1310).
It
has
29
Regional
Headquarters
in
the
urban
areas
of
Pakistan
and
1224
branches
locally.
Its
vicinity
extends
in
18
nations
of
the
world
and
holds
a
work
force
of
employees
approximately
13,800
in
number.
Similarly
the
bank
has
developed
systems
to
facilitate
the
overseas
Pakistanis
by
developing
technology-‐based
systems
so
that
the
expatriates
can
send
remittances.
The
bank
also
has
entered
into
agency
arrangements
with
3000
correspondent
banks
worldwide
so
that
its
customer
needs
are
met
globally.
The
bank
has
also
offloaded
23.2%
of
its
shares
in
the
stock
market,
which
means
that
it
is
moving
towards
privatization.
The
NBP
Group
NBP
Modaraba
Management
Company
Limited,
the
subsidiary
company
of
the
Bank,
has
control
over
First
National
Bank
Modaraba,
Pakistan
as
its
management
company
and
likewise
has
an
immediate
economic
interest.
The
modaraba 's
financial
statements
are
with
the
the
Bank
as
a
definitive
holding
company.
The
Group
is
primarily
occupied
with
commercial
banking,
management
of
modaraba,
leasing,
brokerage,
remittances
in
foreign
currencies,
asset
management,
exchange
transactions
and
services
related
to
consultation
in
investments.
A
concise
briefing
of
the
holding
company
and
subsidiaries
is
given
below:
The
"Group"
consists
of:
Holding
Company
Subsidiary
Companies
National
Bank
of
Pakistan
NBP
Leasing
Limited,
Pakistan
CJSC
Subsidiary
Bank
of
NBP
in
Kazakhstan
CJSC
Subsidiary
Bank
of
NBP
in
Tajikistan
First
National
Bank
Modaraba,
Pakistan
NBP
Exchange
Company
Limited,
Pakistan
National
Bank
of
Pakistan
&
Credit
Agricole
5
NBP
Modaraba
Management
Company
Limited,
Pakistan
Taurus
Securities
Limited,
Pakistan
NBP
Fullerton
Asset
Management
Limited,
Pakistan
Cast-‐N-‐Link
Products
Limited
Subsidiaries
of
NBP
NBP
not
only
provides
commercial
banking
and
related
services
domestically
but
overseas
as
well.
The
bank
also
provides
services
as
trustee
to
National
Investment
Trust
(NIT),
Long-‐Term
Credit
Fund
(LTCF)
and
Endowment
Fund
for
student
loans
scheme.
Along
with
all
this
handles
the
Government
of
Pakistan’s
treasury
transactions
and
acts
as
an
agent
to
the
State
Bank
of
Pakistan
(SBP).
NBP
Leasing
Limited,
Pakistan
NBP
Leasing
Limited
(NBPLL)
has
its
registered
office
in
Karachi.
It
is
mainly
involved
in
the
leasing
business
goverened
by
the
Non-‐Banking
Finance
Companies
Rules,
2003
(the
NBFC
Rules).
IT
was
established
in
Pakistan
on
7th
November,
1995
as
a
a
public
limited
unquoted
company
under
the
Companies
Ordinance,
1984.
CJSC
Subsidiary
Bank
of
NBP
in
Kazakhstan
CJSC
Subsidiary
Bank
of
NBP
in
Kazakhstan
(JSCK)
is
a
joint-‐stock
bank
that
additionally
provides
commercial
banking
services.
The
registered
office
of
JSCK
is
located
in
Almaty,
which
was
incorporated
in
the
Republic
of
Kazakhstan
in
2001.
CJSC
Subsidiary
Bank
of
NBP
in
Tajikistan
Another
joint-‐stock
bank,
CJSC
Subsidiary
Bank
of
NBP
in
Tajikistan
(JSCT)
was
incorporated
in
the
Republic
of
Tajikistan
in
2012
where
it
has
its
registered
office
in
Dushanbe,
Republic
of
Tajikistan.
JSCT
also
provides
commercial
banking
services.
National
Bank
of
Pakistan
&
Credit
Agricole
6
First
National
Bank
Modaraba,
Pakistan
First
National
Bank
Modaraba
("the
Modaraba"),
with
its
registered
office
in
Lahore,
is
managed
by
National
Bank
Modaraba
Management
Company
Limited
(a
wholly
owned
subsidiary
of
National
Bank
of
Pakistan),
incorporated
in
Pakistan
under
the
Companies
Ordinance,
1984
and
registered
with
the
Registrar
of
Modaraba
Companies.
It
is
a
multi-‐purpose,
perpetual
and
multi-‐
dimensional
Modaraba
formed
under
the
Modaraba
Companies
and
Modaraba
Ordinance,
1980
and
Rules
framed
there
under.
It
started
its
operations
on
December
04,
2003
and
is
involved
in
various
Islamic
modes
of
financing
and
operations
including
ijarah,
musharakah
and
murabaha
arrangements
at
present.The
The
Modaraba
is
listed
on
Karachi
and
Lahore
stock
exchanges.
NBP
Exchange
Company
Limited,
Pakistan
NBP
Exchange
Company
Limited
(NBPECL)
has
its
registered
office
in
Karachi
and
it
is
a
public
unlisted
company.
NBPECL
is
engaged
in
foreign
currency
remittances
and
exchange
transactions.
NBPECL
has
13
branches.
It
was
established
in
Pakistan
on
September
24,
2002
under
the
Companies
Ordinance,
1984.
Taurus
Securities
Limited,
Pakistan
Taurus
Securities
Limited
(the
Company)
is
a
subsidiary
of
National
Bank
of
Pakistan,
which
holds
58.32%
of
the
shareholding
of
the
Company.
It
is
a
public
unquoted
company,
which
was
established
on
June
27,
1993
under
the
Companies
Ordinance,
1984
in
Pakistan
and
has
its
registered
office
in
Karachi.
The
Company
holds
a
Trading
Rights
Entitlement
(TRE)
Certificate
from
Karachi
Stock
Exchange
Limited
(KSEL).
The
Company
is
conducts
of
stock
brokerage
business,
investment
counseling
and
fund
placements.
NBP
Fullerton
Asset
Management
Limited,
Pakistan
NBP
Fullerton
Asset
Management
Limited
(the
Company),
has
its
registered
and
principal
offices
situated
in
Karachi.
It
was
established
in
Pakistan
as
a
public
limited
Company
on
August
24,
2005
under
the
Companies
Ordinance,
1984.
It
obtained
the
certificate
for
commencement
of
business
on
December
19,
2005.
The
Company
is
mainly
involved
in
the
business
of
investment
advisory
services
and
asset
management.
The
main
sponsors
of
National
Bank
of
Pakistan
&
Credit
Agricole
7
Company
are
National
Bank
of
Pakistan
and
Alexandra
Fund
Management
Pte
Ltd,
member
of
Fullerton
Fund
Management
Group
in
Singapore.
Types
of
Funds
As
at
December
31,
2012
the
company
was
managing
the
following
funds
and
discretionary
portfolio:
• NAFA
Income
Opportunity
Fund
• NAFA
Income
Fund
• NAFA
Islamic
Aggressive
Income
Fund
• NAFA
Islamic
Multi
Asset
Fund
• NAFA
Multi
Asset
Fund
• NAFA
Stock
Fund
• NAFA
Government
Securities
Liquid
Fund
• NAFA
Savings
Plus
Fund
• NAFA
Riba
Free
Savings
Fund
• NAFA
Asset
Allocation
Fund
• NAFA
Financial
Sector
Fund
• NAFA
Money
Market
Fund
• Discretionary
portfolios
All
the
above
funds
are
‘Open
end
Funds’.
Timeline
of
Operations
·
1950
NBP
established
a
branch
in
Jeddah,
Saudi
Arabia.
·
1955
By
this
time
NBP
had
branches
in
London
and
Calcutta.
·
1957
NBP
established
a
branch
in
Baghdad,
Iraq.
National
Bank
of
Pakistan
&
Credit
Agricole
8
·
1962
NBP
established
a
branch
in
Dar-‐es-‐Salaam,
Tanganyika.
·
1964
The
Iraqi
government
nationalized
NBP 's
Baghdad
branch.
·
1965
The
Indian
government
seized
the
Calcutta
branch
on
the
outbreak
of
hostilities.
·
1967
The
Tanzanian
government
nationalized
the
Dar-‐Es-‐Salaam
branch.
·
1971
NBP
acquired
Bank
of
China 's
two
branches,
one
in
Karachi
and
one
at
Chittagong.
At
separation
of
East
Pakistan
NBP
lost
its
branches
there.
NBP
merged
with
Eastern
Mercantile
Bank
and
with
Eastern
Bank
Corporation.
·
1974
The
government
of
Pakistan
nationalized
NBP.
As
part
of
the
concomitant
consolidation
of
the
banking
sector,
NBP
acquired
Bank
of
Bahawalpur.
·
1977
NBP
opened
an
offshore
branch
in
Cairo.
·
1994
NBP
amalgamated
with
Mehran
Bank.
·
1997
NBP 's
branch
in
Ashgabat,
Turkmenistan
commenced
operations.
National
Bank
of
Pakistan
&
Credit
Agricole
9
·
2000
NBP
opened
a
representative
office
in
Almaty,
Kazakhstan.
·
2001
State
Bank
of
Pakistan
and
Bank
of
England
agree
to
allow
only
2
Pakistani
banks
to
operate
in
the
UK.
NBP
and
United
Bank
agreed
to
merge
their
operations
to
form
Pakistan
International
Bank,
of
which
NBP
would
own
45%
and
United
Bank
55%.
·
2002
Pakistan
International
Bank
renamed
itself
United
National
Bank
Limited
(UNB).
The
ownership
structure
of
the
UNB
remained
as
before.
The
only
change
to
the
shareholding
structure
is
that
UNB
had
recently
been
privatized
in
Pakistan
and
was
now
owned
49%
by
the
Government
of
Pakistan
and
51%
by
a
joint
foreign
consortium
of
Abu
Dhabi.
·
2003
NBP
received
permission
to
open
a
branch
in
Afghanistan.
Vision
and
Mission
Vision
“To
be
recognized
as
a
leader
and
a
brand
synonymous
with
trust,
highest
standards
of
service
quality,
international
best
practices
and
social
responsibility”
The
vision
of
NBP
states
market
leadership,
high
level
of
customer
trust,
service
quality
and
sound
national
and
international
banking
practices
as
its
long-‐term
goals.
To
some
extent
it
has
achieved
its
targets
owing
to
the
fact
a
large
part
of
it
is
still
owned
by
Govt.
of
Pakistan.
It
works
as
agent
of
GoP
in
various
transactions
such
as
disbursements
employee
salaries
and
pensions
and
bailouts
etc
so
it
has
a
huge
market
share.
Since
it
is
backed
by
GoP
so
nobody
National
Bank
of
Pakistan
&
Credit
Agricole
10
can
doubt
its
trust-‐worthiness
as
evident
from
its
credit
ratings.
In
terms
of
service
quality
it
is
not
that
good
due
to
slow
paced
modernization
and
lack
of
employee
efficiency.
Since
it
has
branches
in
various
countries
so
it
can
be
said
NBP
follows
international
banking
norms.
In
past
it
has
taken
various
initiatives
which
shows
its
commitment
with
society
and
also
it
has
facilitated
various
GoP
initiatives
being
its
agent.
The
vision
statement
of
NBP
symbolizes
its
resolve
to
become
leaders
and
a
trustworthy
bank.
It
also
includes
its
commitment
to
social
responsibility.
In
the
modern
era
of
today
excelling
only
in
the
field
of
business
is
not
the
only
criteria
for
a
concern
to
be
called
successful
and
a
leader
in
its
field.
Efforts
towards
contributing
positively
to
the
society
through
various
initiatives
has
become
a
must
do
thing
for
the
businesses.
Contributions
in
social
sector
create
a
positive
image
about
a
business
and
help
in
improving
the
social
conditions
of
a
society
as
a
whole.
NBP
is
a
government
owned
bank
and
enjoys
a
lot
of
leverage
because
of
this
and
has
branches
virtually
everywhere.
It
is
mandatory
for
government
departments
to
have
accounts
in
NBP
and
conduct
their
transactions
through
it.
In
our
opinion
this
gives
an
undue
advantage
to
the
bank
and
makes
it
a
leader
in
many
fields
without
any
regard
to
its
performance.
Until
recently,
it
was
compulsory
for
all
retired
government
employees
to
have
their
accounts
for
pension
in
NBP.
This
caused
a
lot
of
inconvenience
to
the
public,
but
increased
NBPs
portfolio
manifold.
A
ruling
of
Supreme
Court
of
Pakistan
reversed
the
situation.
Another
advantage
that
the
bank
had
was
that
all
utility
bills
were
to
be
deposited
in
NBP.
This
practice
has
also
been
undone
and
the
customers
can
now
pay
their
bills
in
all
banks.
In
terms
of
trust,
the
record
of
NBP
is
not
exemplary.
A
few
years
back
ATM
system
of
the
bank
was
hacked
resulting
in
loss
to
many
clients.
This
most
probably
originated
from
its
Multan
offices.
Since
NBP
is
a
government
owned
bank,
its
employees
have
security
of
job
without
regard
to
their
performance,
which
makes
them
complacent.
Being
a
government
bank,
NBP
is
at
a
disadvantage
in
many
ways
such
as
granting
of
loans
etc.
Due
to
interference
by
the
people
in
power,
it
has
given
loans
without
proper
guarantees
resulting
in
bad
loans
and
loss
to
the
bank.
National
Bank
of
Pakistan
&
Credit
Agricole
11
Mission
“NBP
will
aspire
to
the
values
that
make
NBP
truly
the
Nation’s
Bank,
by:
• Institutionalizing
a
merit
and
performance
based
culture
• Creating
a
distinctive
brand
identity
by
providing
the
highest
standards
of
services
• Adopting
the
best
international
management
practices
• Maximizing
stakeholders
value
• Discharging
our
responsibility
as
a
good
corporate
citizen
of
Pakistan
and
in
countries
where
we
operate”
Mission
of
NBP
aims
to
hire
its
people
on
the
basis
of
merit
and
make
its
culture
based
upon
performance.
NBP
has
not
been
able
to
achieve
this
mission
because
its
culture
is
based
upon
seniority
rather
on
performance
based.
Also
interference
of
political
people
in
hiring
process
also
compromise
merit.
As
it
has
failed
to
rapidly
deploy
state
of
the
art
technology
in
its
network
so
service
standard
is
bad
due
to
which
it
has
very
poor
brand
identity.
It
has
somehow
managed
to
sustain
its
existence
in
various
countries
despite
the
fact
it
has
to
compete
with
various
international
banks
with
a
lot
more
advance
technologies
all
because
of
its
sound
and
healthy
earnings
in
Pakistan
as
well
bulk
of
revenue
from
remittance
flow
to
Pakistan.
Its
financial
health
is
quite
impressive
and
it
has
grown
a
lot
since
its
inception.
Recently,
GoP
has
off
loaded
quarter
of
its
share
to
make
it
state
of
the
art
bank
through
private
partnership,
which
would
help
further
to
enhance
shareholders
value.
As
told
earlier
it
has
various
programs
along
with
facilitating
programs
to
GoP,
which
shows
its
commitment
to
society.
Core
Values
• Highest
standards
of
Integrity
• Institutionalizing
a
teamwork
and
performance
culture
• Excellence
in
services
• Advancement
of
skills
for
tomorrow’s
challenges
• Awareness
of
social
and
community
responsibility
• Value
creation
for
all
stakeholders
National
Bank
of
Pakistan
&
Credit
Agricole
12
Above-‐mentioned
are
the
six
core
values
of
NBP.
Some
of
them
are
followed
pretty
strictly
like
integrity,
awareness
of
social
and
community
responsibility
and
value
creation
for
stakeholders.
But
in
other
aspects
it
is
still
lagging.
For
example
it
is
still
following
old
bureaucratic
culture
based
upon
theme
of
seniority.
This
type
of
culture
hinders
implementation
performance
based
culture.
Also
there
are
many
other
competitors
offering
services
far
better
than
NBP
owing
to
modern
techniques
and
talent.
NBP
also
lacks
modern
skills
and
very
slow
in
application
of
state
of
the
art
technologies
to
integrate
its
operations
to
maximize
efficiency.
These
doubts
on
performance
problem
appear
from
the
report
of
JCR-‐VIS,
a
credit
rating
agency,
which
says
that
NBP
is
not
using
its
resources
efficiently
e.g.
over
staffing.
Recent
Developments
In
order
to
enhance
customer
convenience
NBP
opened
58
new
branches
10
of
which
belonged
to
Islamic
Banking.
NBP
is
also
working
on
development
of
computerized
Govt.
pension
payment
system
and
aims
to
complete
it
by
the
end
of
2014.
It
has
also
used
its
prototype
version
at
200
branches
for
Govt.
employees
only.
It
is
also
rapidly
enhancing
its
ATM
services
offering
with
special
focus
on
Islamic
banking.
It
is
going
to
offer
“Aitemaad
ATM
Card”
through
its
Islamic
Banking
Group.
It
has
also
developed
a
comprehensive
5-‐year
plan
to
establish
over
100
Islamic
Banking
branches
to
get
maximum
benefit
out
of
largely
untapped
market.
Right
now
it
is
in
the
process
of
installing
an
integrated
information
system
across
all
of
its
functions.
Right
now
head
office,
along
with
17
other
branches
in
Pakistan,
is
on
this
platform.
In
international
branches
Korean
and
Japanese
branches
are
online
with
this
system.
This
system
would
not
only
help
in
increased
customer
service
quality
but
also
in
enhancing
operational
efficiency.
Organizational
Structure
The
organizational
structure
of
NBP
is
briefly
given
below:
National
Bank
of
Pakistan
&
Credit
Agricole
13
The
various
departments
are
as
follows:
• Corporate
and
Investment
Banking
Group
•…
