Académique Documents
Professionnel Documents
Culture Documents
2013
2014
2015
1,574,693
977,744
1,634,144
318,016
183,003
124,837
85,240
516,921
147,892
526,118
10,685,519
580,230
-
138,279
231,471
10,965,479
722,342
-
1,112,566
Lending to financial institutions
Liabilities
Bills payable
Borrowings from Financial
Deposits and other accounts
Subordinates loan
Liabilities against leased Asset
Other Liabilities
Defer Tax Liabilities
109,589
380,247
12,284,703
830,380
-
Total Liabilities
11,940,154
12,057,608
13,604,938
1,607,602
1,598,910
1,817,149
3,530.270
6,807,482
831,062
305,860
35,682
13,547,756
1,607,602
3,945,060
6,171,814
811,839
344,027
109,161
13,656,518
1,598,910
5,590,668
6,271,996
913,977
331,932
98,367
15,422,087
1,817,149
2013
2014
2015
Net Asset
Current Asset
Investments
Advances
Other Asset
Operating Fixed Asset
Defer tax Asset
Total Asset
Total Representation
2.4 Vertical Analysis of Balance Sheet
Particulars
Cash and Balance with treasury
banks
Balances with other banks
1,574693
977,744
1,634,144
318,016
183,003
124,837
85,240
516,921
3,530,270
6,807,482
831,062
305,860
35,682
13,547,756
3,945,060
6,171,814
811,839
344,027
109,161
13,656,518
5,590,668
6,271,996
913,977
331,932
98,367
15,422,087
147,892
526,118
10,685,519
580,230
138,279
231,471
10,965,479
722,342
10,9589
380,247
12,284,703
830,380
1,112,566
Lending to financial institutions
Current Asset
Investments
Advances
other Asset
Operating Fixed Asset
Defer tax Asset
Total Asset
Liabilities
Bills payable
Borrowings from Financial
Deposits and other accounts
Subordinates loan
Liabilities against leased Asset
Other Liabilities
11,940,154
12,057,608
13,604,938
Net Asset
Represented By
Share Capital
1,607,602
1,598,910
1,817,149
190,429
211,728
211,728
333,755
494,951
1,040,434
550,310
1,598,910
328,379
594,641
1,134,748
675,265
1,817,149
311,943
Reserves
Unappropriated profit
Total
Surplus revaluation of asset
Total Representation
727,017
370,072
1,607,602
Year
2014
Year
2015
=13,656,518/12,057,608
= 15,422,087/13,604,938
=1.1133
= 1.134
Interpretation:
1.0 current ratio is often referred to as acceptable, but relies on the approval of one of the
industry in which the firm operates. In 2014 as compared to 2013. The higher current assets to
current liabilities was more liquid banks. This means that the bank's profit, but its fixed assets
with current liabilities, which risk areas at the same time (as long-term investments and deposits)
financing. In 2014 the Bank's current liabilities (increase in current deposits) but an increase in
current assets (short Advances) is greater. It has improved its liquidity position through
investment in existing assets rather than bank fixed assets in 2014.
Year
2014:
=13,656,518-12,057,608
Year
2015:
NWC =15,422087-13,604,938
= (1,598,910)
= (1,817,149)
Interpretation: Net working capital is generally used to measure a bank's overall liquidity. NBP
as current liabilities (current deposits), the current assets (short-term advances & investments).
Current bank loans in fixed assets is done using very aggressive approach by investing. Bank
profits but with risk at the same time. 2014 Bank NWC but also by more than the fixed assets
investment in current assets was slightly better. Liquid position of the bank through investment
in existing assets has improved.
2.5.1.3 Cash to current Liability Ratio
Cash to current liability ratio =Total Cash/Current Liability
Year
2014:
Year
2015:
=1,574,693/138,279
=977,744/109,589
=11.39
=8.92
Interpretation This ratio will compare the most liquid asset cash with the most short term
liability(current deposits). NBP has less cash then the current Liability (current deposits) so its
means that bank has invest the depositors money in different ventures.
2.5.2 Debt Ratio
The debt position of a bank indicates the amount of other peoples money being used in
attempting to generate profits.
Formula:
Debt To Assets Ratio=TL/TA*100
Year
2014:
Year
2015:
= 12,057,608/13,656,518 x 100
=13,604,938/15,422,087 x100
=88.29 %
=88.21%
Interpretation:
The ratio of debt bank creditors (measures the proportion of total assets
financed by depositors). Higher than the proportion being used in an attempt to create money
from the money of other people. 2014 Bank Bank's total assets (Advances & Investment for the
leverage ratio is decreased) had been increasing over the last liabilities (current deposits).
2.5.2.1 Debt to Equity Ratio:
Formula:
YEAR 2014
=12,057,608/211,728
YEAR 2015
= 13,604,938/211,728
= 56.95
=64.26 times
Interpretation: Debt is debt equity ratio indicates the relationship between taxpayers and the
total funds provided by provided by bank owners. It is usually used to measure the degree of
financial leverage. The decline occurred in 2014 and 2014 debt to equity ratio, the ratio was
lower than in 2013, though still greater than the amount of interest the bank distributed dividend
to share holders money by bank was.
2.5.2 .2 Return on Assets: Formula:
ROA=NPAT/TA*100
YEAR 2014
YEAR 2015
=8,166/13,656,518 * 100
=7,136/15,422,087 * 100
=0.06 %
=0.05%
Interpretation: 0.06% Bank and indicates that 2014 was still less than 0.06% return earned
money on every single penny of assets invested in 2013. Without bank NPAT for any additional
payments made to depositors, increased in 2014, the Commission received in 2014 on broader
and better service and compensation Bank delayed payments from customers and tax
concessions has been collected from.
2.5.2 .3 Return on Equity:
Formula:
ROE=NPAT/S.H.E
YEAR 2014
YEAR 2015
=8,166/211,728
= 7,136/211,728
= 0.04
=0.03
CHAPTER 3
SWOT ANALYSIS
NBP's total assets stood at Pak Rs.370 billion on December 2001. This included total
earning assets of about Pak Rs.268 billion with gross loan portfolio of Pak Rs.140 billion.
The bank also has an investment portfolio of Pak Rs.91 billion, which comprises treasury
securities, corporate bonds, shares and other securities.
NBP cash provision as percentage of nonperforming loans equal to 60% this coverage factor
for the non performing loans is the highest amongst the nationalized commercial bank.
NBP has an extensive domestic branch network of 1200 (according to the latest data)
branches located all over Pakistan. The Bank also has a presence in 19 international locations
including the USA, United Kingdom, Europe and the Far East.
NBP is working as right arm government of Pakistan as it is responsible for all claims of
government for recovery as well as payment. All depositor of NBP are in relief that their
money security is guaranteed by government of Pakistan.
It acts as an agent of the Central Bank wherever the State Bank does not have its own
Branch.
NBP staff especially at lower considers their work as burden. They usually waste time in
other task a part in performing their duty. Using government property for there own need.
They are reluctant to accept change brought by latest restructuring efforts.
NBP is far behind in offering modern banking facility like automated teller machines then
other commercial bank in Pakistan as only eighteen branches in all over country have this
facility.
NBP has only forty-four on line branches. While from remaining branches data gathering is
time consuming, and not fool proof. Quantum of settlement within
Different branches are pending because of this updating daily record is becoming very
difficult.
NBP bearing up large burden in running those branches, which are not producing any income
but keep on adding expenditure.
NBP is relying on its traditional sources of income it has not taken benefit from innovation in
banking like introducing retail banking or consumer banking and using any type of scheme to
generate more deposits and producing more advances. Further, more dont even continue its
credit card due mismanagement and lack of control.
Customers have to fallow long lengthy procedure for opening of account as well applying for
debt. Which discourage most of the people to invest in NBP?
In NBP, most of the time merit not has importance in hiring of employees. Such practices are
black spot on the face of bank and resulted big losses and fraudulent acts by NBP own
employees.
The general out look and interior layout of branches are not as required according to modern
banking.
Comprehensive training programs has been develop to up grade the core banking skills of the
existing staff as well as integrate high quality hiring.
Setting of target for of making at least 300 branches country wide on line.
e. Because of biggest ATM system, MCB can extend its 24 hours money offices
to the far away urban areas of the developing business sector request.
f. Greatest number of branches, affecting the support of consistency and some
working environment build its benefit and enhance its business sector picture
by supporting amusements at commonplace and national level.
g. The bank is most likely the monetary association in the nation .It can misuse
the characteristic assets of the nation which won't just enhance its budgetary
position additionally build up the financial existence of the general population
which is a definitive goal of the bank
h. The bank can likewise exploit the potential hydal force of the region Now that
the legislature has chosen to manufacture little dams in the area the bank can
put resources into this field .It won't just support the agribusiness division in
the nation, additionally give an incredible wellspring of power which is the
essential prerequisite for advancement.
i. Because of the need for micro financing in the market, there are lot of
opportunities in this regard. Other banks have already initiated, now the time
has arrived when the NBP must realize it and take on step to cater an ongoing
demand.
3.4 THREATS
Following are the major threats which national bank of Pakistan is facing:
Major threats NBP facing is from its competitor especially from denationalized commercial
bank. In which MCB is on the top of the list, The Bank provides 24 hour banking
convenience with the largest ATM network in Pakistan covering 15 cities with over 100 ATM
locations.
Recently banks and other financial institutions have introduced innovative schemes to attract
deposits, like gift cheque scheme by MCB. These schemes offer prizes on short and long
term fixed deposits, through lucky draws.
Retail banking and consumer banking resulting in the products such as credit cards, housing
finance and automobile finance lending to small individual consumers, and purchases of
automobiles, housing, and consumer goods are generally made on a cash basis. These are
causing another threat, if not counter will result in significance loss of customers
Now banks are using technology which covers the distance no matter how far away any one,
through a satellite based, on-line real-time banking system and by offering telephone
banking, electronic funds transfer, E-Banking and other modern facilities.
3.5 SUGGESTION
NBP mistake was not keeping pace with other banks to change the banking industry. It tries
to combine all its power bank and refer to other banks.
Bank management is to put all efforts to lay the foundation for the business-oriented culture
and to change the current culture of the bank. The employees of the bank and give it to the
customer.To attract the customer in the future NBP have to make extensive effort to give
facilities of retail and consumer banking. Plus the technology in the banking which will be
necessary for future banking is another week area need to be stressed.
The outlook and interior lay out of the branches is another thing which needs to be improved.
Latest reorganizing efforts are necessary to make it cost effective also making its facility
accordingly to modern banking. These must continue.
The procedure of taking services from the bank must be made easier and straight forward not
involving long difficult procedure for simple task.