National Bank of Pakistan has rich history. Its growth and success has followed the nation's fortunes. Since I was appointed President of NBP, I have emphasized the need to improve service quality, introduce a merit-based culture and enhance staff welfare. Further, my management team and I are working to broaden financial inclusion to bring benefits to all segments of society, channel funding towards SME and agricultural lending which are the fundamental drivers of growth in our economy, and embed organizational changes which would bring NBP in line with modern banking practices.
The success of NBP ultimately depends on how well we serve our clients and how closely we fulfill their financial needs; on an efficient and responsive operational infrastructure; and on meeting the highest expectations of our regulators. I am pleased to state that there has been full acknowledgement and buy-in of these priorities from all our stakeholders, including the State Bank of Pakistan and Ministry of Finance; our colleagues and workers representatives; and of course our clients.
Internally, there are some areas we are starting to re-engineering with a view to improving the effectiveness of our component parts and as well as generating cost efficiencies, which will help us to achieve better results and to truly justify the title of "The Nation's Bank". The confidence and faith of our clients in NBP is very strong; combined with our wide outreach this provides us with unmatched opportunities to serve our clients and build or business.
Emphasis is being placed on Digital Banking and rationalizing our G2P payments through Alternate Delivery Channels. In light of the increasing importance of e-channels, we have established a new Group Payment Systems & Digital Banking (PSDB). There is much work that is under way and some products and platforms have been launched successfully.
Islamic Banking Group has also been strengthened and further reorganization will take place to achieve optimal results using the power of our 170 Islamic Banking Branches. I am personally following up on their development and progress. Once the restricting of this business is implemented, and as we introduce new Sharia-compliant products, I am confident we will see extraordinary growth in this segment. On the occasion of our 68th Anniversary our Board of Directors, staff at all levels and I are determined to make NBP one of the best institutions in Pakistan.
OUR SUCCESS STORY
Every success story begins with a humble step. It was 8th November, 1949, when the National Bank of Pakistan came into existence and since then there has been no looking back. Every year has been a success story in its own right, and this year the Bank celebrates 68 glorious years of trusted and quality service. Moving forward we've set the NBP wheel in motion for 2018 to be a year full of celebrations, fulfilling promises, realizing dreams, and setting even bigger goals! Let us now closely look at the developments that have taken place at the Bank over almost seven decades...
The 1950s...
The beginning
During 1950s the Bank undertook expansion of branch network. The first overseas branch was established in Jeddah, Saudi Arabia (1950), a branch in London (1953) and another branch in Baghdad (1957). In the same decade the Bank took Government Treasury Operations and established currency chests at various locations. It managed currency chests or sub-chests at 57 of its offices. Deposits which constituted 3.1 percent of total deposits of all Pakistani banks in 1949 had risen to 38 percent by 1952.
The 1960s...
Dawn of Developments
In 1960s to popularize banking and savings habit schemes were offered to school students, college students, and industrial workers. NBP started the 'School Scheme' operative in 1,189 schools and deposits raised to Rs 2.9 million. And by 1969 NBP's "worker scheme" raised the total deposits by factory workers into Rs 2.84 million and the number of accounts opened had touched 8,767.
The 1970s...
Restructuring & Growth
During this period there was growth in branch network both at home and abroad. The 1970s witnessed the nationalization of Pakistani commercial banks operating in the country. In 1972 the National Bank of Pakistan evolved the Supervised Agricultural Credit Programme, and introduced a new methodology of viable credit for small farmers available at their doorstep. On January 1, 1974 National Bank of Pakistan along with 13 other scheduled Pakistani banks was nationalized.
The 1980s...
New Trends and Alliances
In 1980s the government announced a three year plan for the implementation of an Islamic Economic System. NBP introduced a separate and comprehensive procedure for banking under this system from branch level to Head office. Consolidation and recognization resulted in closure of 286 branches; from 1,646 branches (1979) to 1,360 branches (1989). Overseas expansion continued with opening of representative office in Bejing (1981) and in Seoul, South Korea (1985), latter was converted into a branch in 1987. The Bank increased its authorized and paid up capital twice during the 80s, gaining a much broader stronger equity base.
The 1990s...
New Initiatives & Reforms
The 1990s was a decade of new financial reforms and initiatives. In 1996, National Discounting Services Ltd was launched as a wholly owned subsidiary of NBP. In 1997 the Bank launched a major reorganization programme and offered Golden Handshake Scheme. The Bank became a SWIFT member in 1998. The facility provides modern techenology to Bank customers for prompt and convenient cash transactions and remittances round the clock. In 1999 the Bank celebrated its Golden Jubilee. By the close of the decade its market share had reached around 22 percent and it remained the largest financial institution in the country.
2000-2009...
The Millennium
The decade witnessed restructuring programme, where unprofitable and loss making branches were closed or merged. Regions were reduced to 29. National Bank of Pakistan went public with IPO of 23.2% shares and listing in all domestic stock exchanges (2001). In 2002, the Bank signed agreement with Western Union. The Bank's wholly owned Exchange Company commenced operations in February 2003. NBP gained market recognitions and received over 30 international awards. It also entered into technical assistance agreement with USAID for extensive training of field functionaries for SME financing. The Bank developed NBP eRemittances. In 2007, the Bank posted the then highest ever after tax profit of PKR 19 billion.
2010 Till Today...
Still Focused & Driven
In 2010 the bank appointed proficient and dynamic Regional Heads to change the destiny of the bank and help the economy of the country. NBP became 'One Trillion Rupee' Bank and still growing strong. In 2013 with the growing popularity of Islamic Banking, NBP successfully launched its brand 'Aitemaad' to offer the true spirit of Islamic Finance. During the end of 2016 NBP made it to Guinness Book of World Record by installing World's highest ATM.
Reaching the 68th year of this great institution let us re-dedicate ourselves to helping the nation secure prosperity and economic opportunity for all. Let us all rejoice in this celebration.
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