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