Number of Employees of National Bank of Pakistan

Permanent				13237
Temporary/ On Contractual basis				842
Bank's own staff strength at the end of the year				14079
Outsourced				2350
Total Staff Strength				16429

An employee may be defined as: "A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed." [i]An employee contributes labor and expertise to an endeavor. Employees perform the discrete activity of economic production. Of the three factors of production, employees usually provide the labour. Specifically, an employee is any person hired by an employer to do a specific "job". In most modern economies, the term employee refers to a specific defined relationship between an individual and a corporation, which differs from those of customer, or client. The relationship between National Bank of Pakistan and its employees is usually handled through the Human Resource Management & Administration Group & Employees benefit disbursement & trustee division. These groups handle the incorporation of new hires, and the disbursement of any benefits which the employee may be entitled, or any grievances that employee may have.

 There are differing classifications of workers within National Bank of Pakistan, these are:

      Permanent

      Temporary / On Contractual

      Outsourced

The Employees of National Bank of Pakistan are organizing into trade unions, which represent most of the available work force in National Bank of Pakistan. These trade Unions utilize their representative power to collectively bargain with the management of bank in order to advance concerns and demands of their membership.

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[i] Black's Law Dictionary page 471 (5th ed)

Branch Network of National Bank of Pakistan

With the geographical development of its branches, the National Bank of Pakistan has been able to extend its services to a much larger number of Pakistanis all over the country. Today the Bank has more than 8.8 million accounts & Bank maintains its presence in all the major financial centers of the world through its 22 (2008) overseas branches and 5 representative offices. Of these, three representative offices have recently been set up at Tashkent (Uzbekistan), Baku (Azerbaijan) and Almaty (Kazakhstan) to take advantage of the emerging opportunities in CIS countries. Bank’s role Apart from having a vast branch network, Bank is at the forefront in the acquisition and application of new technologies in every aspect of its banking facilities. It has acquired leased telephone lines for on-line banking. The Bank has 12 Regional Computer Centers to cover various on-line and batch system requirements of branches and controlling offices.

Presently the National Bank of Pakistan is divided into various Groups headed by SEVPs/EVPs. Its field operations are controlled by 29 regions ( Annexed II) reporting to as many Regional chiefs, who control 40 zones and 15 single Branch zones headed by Zonal Chiefs; 12 corporate branches and 1249 domestic branches headed by Branch Managers. The bank has 12 SWIFT local centers.

Apart from having a vast branch network, Bank is at the forefront in the acquisition and application of new technologies in every aspect of its banking facilities. It has acquired leased telephone lines for on-line banking. Bank has also a presence on the internet. The National Bank of Pakistan has 156 online branches throughout the country. It has modernized its services by installing Automated Teller Machines (ATMs) called “CASH LINK” at selected branches.

The Bank's organizational structure reflects the three levels at which it operates: international, national and local. The Head Office formulates and implements the strategic, management and operational policies.

The Bank's geographical organization consists of branches located in the regional capitals and in some provincial capitals. The branches' activities relate to the State treasury service, payment system services, currency circulation, banking and financial supervision, and the analysis of economic and financial developments at the local level.

The Bank has representative offices abroad, in London, New York and Tokyo; a number of officers are seconded as financial experts to Italian embassies and consulates. The Bank has representative offices in Beijing, Tashkent, Chicago and Toronto. It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty, Kazakhstan. The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore).[i]

The Branch network of National Bank of Pakistan is divided into following categories

      ATM network ( Total ATMs 101 & Total ATMs machines 104)

      Domestic network ( 1249 Branches)

      Islamic network ( 5 Branches)

      Online network  ( 156 Branches)

      Overseas network  ( 29 Branches)

      Swift network ( 12 Branches)

      Customer Facilitation Centers (6 Customer Facilitation Centers)

      Agriculture branches ( 825 Branches)

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[i] http://www.nbp.com.pk/nbp/About_Us/About_US.jsp

Business volume of National Bank of Pakistan

Rupees in Millions
Year		2004	2005	2006	2007	2008
Total Assets		553,231,467	577,719,114	645,132,711	762,193,593	817,758,326
Deposits		465,571,717	463,426,602	501,872,243	591,907,435	624,939,016
Advances		220,794,075	268,838,779	316,110,406	340,677,100	412,986,865
Reserves		10,813,914	13,536,041	13,879,260	15,772,124	19,941,047
Investments		149,350,096	156,985,686	139,946,995	210,787,868	170,822,491
			Horizontal Analysis (%)
Total Assets		100	104	117	138	148
Deposits		100	100	108	127	134
Advances		100	122	143	154	187
Reserves		100	125	128	146	184
Investments		100	105	94	141	114

The business volume of National Bank of Pakistan is stated in terms of total assets, deposits, advances, reserves and investments. To analyze the trend in these items the Horizontal analysis of each item is calculated.

Analysis

The Total Assets of National Bank of Pakistan fluctuates during all years as they show an increasing trend. The total assets are increased 4 % in 2005 and 17 % in 2006. The year 2007 represents second highest percentage on account of total assets as it was increased to 38%. There was an increase of 48 % in 2008 as compare to base year and 10% as compare to 2007.

Analysis

The deposits and other accounts of National Bank of Pakistan show a mixed trend during all years. In the year 2005, the deposits were increased very marginally, with the year 2006 represents an increase of 8%. The deposits are increased 27% & 34% in the years 2007 and 2008 respectively.

Analysis

The advances made by National Bank of Pakistan shows an increasing trend in all years as compare to base year. This implies that National Bank of Pakistan is keener to advance money to lenders. The advances were increased 22 % in the year 2005 and 43 % in 2006 as compare to base year. The year 2007 represents an increase of 54 % and 2008 represents highest percentage among all years that is 87 % as compare to base year.

Analysis

The Banks’ reserves are banks' holdings of deposits in accounts with their central bank plus currency that is physically held in bank vaults (vault cash). The reserves of National Bank of Pakistan fluctuate during all years as they show an increasing trend. The reserves are increased 25 %, 28 % & 46 % in the years 2005, 2006 & 2007 respectively. The year 2008 represents highest increasing percentage of 84% as compare to base and previous years.

Analysis

The investments made by National Bank of Pakistan fluctuate during all years. There was an increase of 5 % in 2005. The year 2006 indicates a decrease of 6% in investments. The year 2007 represents an increase of 41 %, highest among all years. The investments are increased 14 % in 2008 as compare to base year; however investments are decreased 27 % as compare to the year 2007.    

Nature of National Bank of Pakistan

National Bank of Pakistan was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank operates 1,249 (2007:1,232) branches in Pakistan and 22 (2007:18) 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.[i]

The nature of responsibilities of the Bank is different and unique from other banks/financial institutions. The bank also handles treasury transactions for the Government of Pakistan as an agent to the State Bank of Pakistan for handling provincial/Federal Government receipts and payments on their behalf. The National Bank of Pakistan has also played an important role in financing the country’s growing trade, which has expanded through the years as diversification took place. The bank is providing all banking services of mercantile and commercial banking permissible in the country, which include:

      Accepting of deposits of money on current, fixed, saving, term deposit and profit and loss sharing accounts.

      Borrowing money and arranging finance from other banks.

      Advancing and lending money to its clients.

      Financing of projects, including technical assistance, project appraisal through long term/ short term loans, term finance and musharika certificates, etc.

      Buying, selling, dealing, including entering into forward contracts of foreign exchange.

      Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.

      Receiving of bonds, valuables, etc. for safe custody.

      Carrying on agency business for any description other than managing agent, on behalf of clients including Government and local authorities.

      Generating, undertaking, promoting, etc. of issue of shares and, bonds etc.

      Transacting guarantee and indemnity business.

      Undertaking and executing trusts.

      Joint venturing with foreign dealers, agents and companies for its representation abroad.

      Participating in “World Bank” and “Asian Development Bank's” lines of credit.

      Providing personalized Hajj services to intending Hajjis.

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[i] NBP Quarterly Report September 2008