3.15. SWOT Analysis 3.15.1. Strengths Western union facility: National Bank of Pakistan is only one bank which has the facility of Western union. In this particular scheme money is transfer in Pakistan from abroad. This is the fastest way to money transfer. You can receive the money from bank to see the name and password of particular client. ATM finder: There is also strength of NBP that they are found the ATM. They now provide this facility to the customers. Government’s bank: In commercial banking system NBP is only the government bank. They make their policies according to the government’s rules and regulations. It enjoys its position in the market of banking system in Pakistan. Government of Pakistan also facilitating the National Bank of Pakistan. Customer satisfaction: Because of government’s bank, it is enjoying the customer’s satisfaction. Customers feels secure their money in NBP. Online banking: There is also strength of NBP that 130 branches are online. It helps the speedy services giving to the customers. There is also help in checking the balances and daily transactions just at one key press. Employee’s loyalty: Employees are very much loyal to NBP. Employee’s turnover is very low in NBP. Very few employees are leaving the jobs in NBP. So it is very big strength that your employees are loyal to your organization. Wide area of services:
They provide the wide area of services. They offer no. Of services relating to the banking system like, pension to retired government employees, traffic challans, fees received of AIOU, farms of AIOU, utilities bills, deposits, sales tax , withholding tax, property tax, and various loan schemes. 3.15.2. Weakness Lack of communication between employees: During the internship in NBP I found the problem of lack of communication between the employees and management. They have not very much understanding with each other and not share the work of each other. Punishment is not very strong for employees: Punishment threat is not very strong for employees. Some employees are not very professional in their field but top management not takes the action against such employees. Public dealing is not very effective: Public respect is not very effective in NBP. Employees are not taking care of the customers, especially in pension and bills department. Staff shortage: There is also weak point for NBP that staff is very short and more staff is required to meet the needs of the branch work. They help from internees. Lack of respect of seniors: They are not a healthy sign for NBP that respect of seniors is not up to the manners. Juniors try to avoid the seniors and no take the help from them. 3.15.3. Opportunities
Growing banking system: Nowadays banking system is growing quickly so NBP have opportunities to improve the standard and get the more share in the market. NBP have government back: In growing era there is a chance for NBP to improve itself and increase the shares in the market because it is most trustable due to government’s bank. Increase in economic activities: The economic activities are increase nowadays, so banks are contributes more in economic activities. Banks are played role in trade and commerce. So the business of commercial banks is increase. 3.15.4. Threats Increase in no. of banks: Increase in no. of banks is a threat for National Bank of Pakistan. No. of private banks (commercial and private) are operating their business and provide the same facilities. So increase in no. of banks is a threat for NBP. Modern type of banking: Modern and computerized banking is required to fulfill the customer’s need. So maximum branches of NBP are worked in old traditional ways. Highly skilled people and management required to meet the new standard of banking. In NBP some employees are totally irresponsible and lack of complete knowledge of banking system. So these employees are creating continuous problems in the system of NBP. The whole structure change to online :
NBP have wide network of branches. Only 130 branches are online, so it is very difficult and time consumed to convert all branches to online system. So there is also risk involves that if one commuter of one branch suffers in problem, all system and all commuters of all branches must be turnoff.
SWOT ANALYSIS
The SWOT analysis is done by the organization for the environmental scanning. The strength and weaknesses and opportunities and threats are analyzed by organization from the external environment. NBP SWOT analysis is given below:
STRENGTH
A National Bank brand image is its major strength. It has always been considered as the pillar of the country's economic scenario asset wise or balance sheet wise. Its image, work force, network and reputation have created a sentimental and emotional attachment of the people with the bank.
Complete computerized networking in another strength of the bank. Now the bank has the ability to compete with any multinational bank as to keep pace with the changing and fast growing world of today computer have become necessities. The reserve funds indicate positive sign as they have increased as compared to the previous years.
Another competitive edge that the bank has on the rest of the competitors is its expanding business worldwide catering for a large and vast group of customer and maintaining standards of excellence globally and other strength of NBP.
ORGANIZATION CULTURE
NBP's organization culture was very friendly and interesting. Employees has created a very cooperative environment among each other. They have created loyalty toward the organization by deviating their future efforts and energies. The employees take the organizational problem personals and try their best for the prosperity of the organization.
STRATEGIC TOP MANAGEMENT
Fortunately NBP has got from time to time best top management. Currently the NBP Chairman and as well as President S. Ali Raza Sahid he is the person who has saved the life of the organization and contributed a lot.
INDUSTRIAL POLICIES
NBP helps the government on the implementation of its industrial policies with respect to economic growth of the country.
BEST RESEARCH APPRAISAL TEAM
Before the project financing NBP has the research appraisal team that justifies the economic and financial feasibility of not project in the future. That is the strength is the scare that it helps the organization from any loss that is to over in the future in case of failure of the project.
LENIENT POLICY WITH THE CLIENTS
This is one of the best policies of NBP that it does not kept rude behavior with this client if they make late in their repayment of loan. But it has adopts lenient way in dealing with them, it helps its customers in the repayment making rescheduling and restructuring of their loans.
YOUNG BLOOD
NBP has young generation aged 27 to 30 graduates that would be helpful to maintain the quality of their service by hiring new graduates but also would be helpful changing the overall culture of the organization.
WEAKNESSES
National Bank created its own weakness by downsizing. Due to downsizing various experienced and devoted employees were either forced or given the o ption to leave. Only those people were left who had no organization better to join.
Due to right sizing a lot of confusions have taken place as well. For example higher-level management have come from institution or others organizations where everything is computerized. Whereas have by ten staff members (over staffing) hence, the higher management finds it difficult to get work done. From 1995 onward bank exhibits a downward trend indicating its low performance-showing decline in total assets. Total deposits, saving deposits advances investment and total income. This downward trend can caused a great threat to the bank as its competitors are talking its market share, which can cause ruining the image and reputation of the bank thus posing danger in the long run. The graph depicts a decline in the performance of the bank. NBP's major weaknesses are given below:
LESS ATTENTION TO THE RURAL DEVELOPMENT
NBP's portfolio shows that it has made project financing only in the major cities of Pakistan. But a reasonable attention is needed in the project financing of the rural based industrial project of the country.
POOR ADVERTISEMENT
I keenly observe this that as compared to other banks. NBP is very poor in advertising itself and institution, which works a lot in the development of the country, but unfortunately in the business community most of the people are in award of it.
POOR NETWORK
NBP has only 1500 branches all over the Pakistan and in major cities of Pakistan in which other competitors has their branches NBP don't have:
- The formalities involved in getting loans are time concerning and complicated enough.
- It is observed that most of the loans, which have been granted on political basis, are either default or their loans are forcefully written off.
- It is seemed that the recovery system of NBP is not effective that's why number of defaulters are increasing at the growing age.
- Political interference in the recruitment system.
- Uncertainly among the employees due to threat of downsizing.
OPPORTUNITIES
National Bank has very bright prospects for the future. They plan to region their lost glory not only in terms of profitability but also include latest technology and competent work force. Furthermore, NBP is the only bank which is providing facility of bills collecting from 9 AM. to 5 PM. NBP is considering setting up an exclusive utility bank in collaboration with a private firm, which would provide this service for 12 hours.
SPONSOR THE IT BASED PROJECTS
This is the best opportunity available to all banks and NBP as well, to sponsor the IT and computer based projects because the coming century is the century of information technology as new a days all the business community is diverting its attention towards this field.
GOODWILL AND BETTER IMAGE
NBP has advantage of g enerating more deposits and attracting valuable customers due to its better image in the business community. NBP has also advantage of increasing credit lines. This is only due to good dealing and better image that NBP has directly acquired those lines of credit from abroad that are only acquired by it, this better image can help further NBP in explanation of its activities.
GROWTH IN THE INDUSTRIAL SECTOR
NBP's major function is the project financing and it is doing it with full efforts. Fortunately industrial sector is now-a-days is Pakistan is again growing thus increasing the business opportunities of NBP. Especially the textile sector is one again improving even the sick projects has resumed their operations.
THREATS
If there is a threat to the whole economy, it will pose a threat for National Bank. National bank does not consider small bank a threat to its existence because the way national bank can accommodation large customer, these small banks cannot. sanctions imposed against Pakistan will affect exchange. Business whereas the freezing of accounts by State Bank of Pakistan have also caused problems for National Bank. But the recent facts and figures indicate that the banks major rivals lime MCB and HBL are causing threats to the bank in the long run thus snatching away the market share by attracting a large number of customer due to the their rising standards giving quality service and value added products and other major threats are as under:
POLITICAL INFLUENCE AND INSTABILITY
This is the major threat for any business organization in Pakistan because the political officials influence NBP in financing those projects which are not viable or write off those loans which are still able to pay, this political influence cause many problems in daily business thus profitability of NBP. Political industrial is even a threat for NBP in the sense that once the policies and procedures are approved by government.
SICK PROJECTS
NBP's sick projects are increasing day by day due to economic downfall. As our economy is weakening day by day the no of side projects are becoming sick increasingly thus influencing the profitability even survival of NBP.
LACK OF MODERN BANKING TECHNIQUES
NBP is following fifty years old style of banking, in the computers of NBP symphony word processor is still used. Which is the oldest word processor due to this the deposits are looking to be corded, because of the provision of credit cards and other such services by its competitors both local and foreign banks is proving to be limiting factor in the deposit mobilization efforts of the corporation.
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6.2.2. Problems faced by branch: During my internship at this particular branch of national bank of Pakistan, there are following problems I have found which are directly affect on efficiency and performance of the bank. There problems are also called as an internal problems. So these are discussing below. 1. Lack of communication among the employees: During the period of my internship I found this problem as a biggest problem that, they are not very effective in communication between themselves. They do not share the experience with each other and do not care the other employee. If one employee has a problem, then he asked to other, but he does not give clear solution to that problems. They are shows the facial expressions against each other. Pension manager and other employees are always tried to gain cash/performance award and use the references to get it. They are talk against each other in front of me. So finally it is very needy for a public services organization to keep atmosphere friendly among the management and employees. National bank of Pakistan (Tech Society Branch) is lack in communication skills among the employees.
2. Ineffective public dealing: There is also a big issue that they think its government’s bank so it does not care customers. It is a wrong perception. There must be a good public dealing in public service organization. If one customer asked a question twice. They angry on him and stop working. I personally experienced in pension department. The manager pension (Mr. Iqbal) have no respect to the old pensioner and he used wrong wording against them same is also happened in bills executive in bills (Mr. Shafique) is also angry on Customers, when they asked question twice, so there should be solve this problem to create a good environment of the NBP. 3. Lack of commitment:
Lack of commitment is also a bib problem faced by the national bank of Pakistan (wahdat road branch). Employees are not committed to the work and their duties. This is very common problem. For example, Rao Ikhlaq not received the letters from last two months. ATM machine is under Rao Ikhlaq but it is run by operation manager. Mr. Kamran not attached the scroll at time. Mr. Qamar Zaman going on leave of 3 days but he does not come back even after 3 weeks. So internees are performed duties on his seat. So employees are not very committed to their jobs and duties. Top management is also not very committed to this branch. They are not provided employee after transfer of the Rao Ikhlaq. One executive on leave while other transferred. But not a single executive provide to the branch finally it is conclude that there is a lack of commitment from employees and top management also from employees and Top management also. 4. Low Efficiency of employees: Efficiency of employees is also low at this branch. For example Mr. Qamar Zaman Aulik has 10 years experience at national bank of Pakistan but he is not professional even at single seat in the bank. Where he assign the result is zero. During my internship firstly he works in advances. He does not sent returns to head office at last dates. 95% of returns are not sent to the regional head quarter. So he was not too much professional. After this he assign in passing the cheques but results are same (zero). So for this efficiency is very low at this branch. 5. Not very regular and punctual: Regularity and punctuality shows the character of a big and good executive. But this problem is also faced by the NBP (Wahdat road) many executive not come at time. For example Mr. Saeed compliance officer came 10 A.M. While bank is started at 9AM. So some other executives are also not coming at time. So there must be solved that problem by the Top management. In regional head quarter Mr. Munawir Shah is HRM assistant manager is also come at 10 Am. 6. lack of computing skills:
Computing skills are also low, some executive are very efficient in computing skills but some are not totally aware from this system. For example ATM machine at this branch is only handled to Mr. Imran operation manager. When operation manager is on leave due to heart patient, ATM machine is off not worked because no body knows to run this machine. Western Union is not worked effectively. The person who handled western Union is careless and other employees are not taken interest in tat field. So there is western Union for just name actually it does not worked. 7. Misuse of resources: Resource are very needy, so there must be avoid to misuse the resources but in this branch it is reverse case, there is very wrong use of the resources, employees does not take care of resources and not used them in right direction. For example wrong printing, extra printing, after service time Mr. Hasnain at token used telephone almost one to two hours to take personally outside the bank. So these are the real problems which are faced by the bank. Finally it is suggested that if these problems are solved there are much more chances for increase the performance of NBP. Particularly this branch. After that I noted down the critical analysis of NBP Model Town Branch. I celebrated down the problems which I observe in this branch during my internship. After that SWOT Analysis of NBP in business sector is mentioned in this report. Then in the end I have noted down the conclusion and some recommendations for improvement of the working of NBP.
