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GROUP MEMBERS NAEEM YOUSAF MALIK ASAD NAWAZ MALIK HARRIS LATIF FAIZAN TAFZIL ABDULLAH USMAN ISHAQ L1F10BBAM2049 L1F10BBAM2059 L1F09BBAM2074 L1F10BBAM2055 L1F10BBAM2048

PRESENTED TO: PROF: MOHSIN RAUF DATE: 30TH OCT, 13 SECTION: E

PRESENTED TO: PROF. MOHSIN RAUF

About NIB Bank NIB Bank is the largest foreign bank in Pakistan in terms of its branch network and one of the largest corporate entities of the country with a paid up capital of Rs. 103 billion. The Bank through its banking footprint of 179 branches in 59 cities of the country continues to serve its more than 450,000 customers for all their financial needs. The Banks resolve to provide world-class financial products and services to the banking population of Pakistan is driven by its key business units including Consumer Banking, Small Medium Enterprises and Commercial Banking, Corporate and Investment Banking and Treasury. NIB Bank is headquartered at the P.N.S.C. Building in Karachi. Six floors of this iconic building serve as the nerve center of the banking footprint in Pakistan. History of NIB Bank NIB Bank started operations in October 2003 when National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC Bank were amalgamated. The Bank grew rapidly and further acquisitions took place the Pakistan operations of Credit Agricola Indosuez were acquired in April 2004, and in 2007, PICIC Commercial Bank Limited merged with the Bank. Temasek Holdings of Singapore continues to be the largest single investor in NIB Bank with a stake in excess of 88%.

PRESENTED TO: PROF. MOHSIN RAUF

Our Strategic Intent To be a high performance bank admired for Innovation, Customer Service and Inspired Employees. Our Values Responsive We are receptive to the need for change and improvement. We are proactive and anticipate our customers needs, adapting quickly to new realities. We are always willing to respond to our customers and colleagues thus displaying mutual respect and understanding for each other. One Bank We function as one Team. We collaborate with our colleagues at all times. We can only serve our customers if we think and act like a Team. Integrity We stand for honesty, transparency and meritocracy. We are recognized for reliability, credibility and respect for others. We fully appreciate our fiduciary responsibility to our Regulators and other Stakeholders. We have the courage to stand for what we believe is right for our customers and the Bank. Excellence We continuously strive to provide customers with the best-suited financial solutions. We aim for excellence www.NIBPK.COM

Mission Statement As put forward by NIB Bank NIBs mission statement is to provide a banking experience so unique, that it compels each of our customers to want a long term,multi product relationship with NIB Bank. Analysis of the Mission Statement They aspire to be the leading banking services provider in Pakistan. Their goal is to

PRESENTED TO: PROF. MOHSIN RAUF

provide quality financial services to individuals and corporate consumers with a long term relationship with the consumer in Pakistan NIBs Vision: To become a leading provider of investment banking and wealth management services. To be top-5 choice of employer, a premier developer of human talent, and an organization that understands and honors its social responsibilities. To revolutionize banking for SME segment by creating new products and distribution. External Analysis of NIB Bank: Banks have always been the most significant among all of the financial sectors; these bodies facilitate the businesses in many ways regardless of their nature and size. However, banks, like any other business are influenced by external factors and below is a brief assessment of those factors using strategic tools. In brief, PEST analysis affects the overall banking companies and provides us the information about the external macro condition PEST ANALYSIS OF NIB BANK Political and Legal We all know we are not in a strong political condition but we know our banks really depend upon the political condition. It political environment is not good so we cannot maximize profit. Political environment is directly related towards our benefits. New political changes may mean a shift in the countrys economic scene as well, which would in turn mean that NIB Bank would have to change its credit policy or some other counter measure to offset the external pressure All the promotional activities undertaken at NIB Bank are within the legal boundaries that have been set for them. Often is the case that careless advertisements end up giving reason to other companies to create massive law suits

PRESENTED TO: PROF. MOHSIN RAUF

Economical Trends As we come to know due to economic crises all over the world every country suffers. Now if we talk about the banks of Pakistan they are the best conceptual bank all over the world. These banks are being affected by the economic crises but not much because their policies and the nature of the business are different. If the economy goes into a recession, there will be massive unemployment; therefore the hiring pattern of NIB Bank will change. Similarly in a boom situation there will be higher rates of employment, again the hiring pattern will automatically change. Economic conditions will determine how easy it will be for the bank to raise its financesand when the opportunity is right to capitalize on the market conditions. Financedepartment will have to decide when that time comes. Therefore product developmentand improvement and other revision will have to be done by the finance department whenneeded.Economic conditions will help determine when a promotional campaign is most likely to be successful. It will be the marketing departments job to determine when the economic conditions are right for that kind of marketing campaign. Socio-Cultural There is some influence in our society that some people still use Qamete system. As an old trend now if we talk about our society they now know the concept of bank and its good in our society. One thing that damages the bank is interest system we as a Muslim country rejects it but now banks are also introduced Islamic banking that is more now more preferred by the Muslims and they feel safer. Changes in the cultural norms and values of the society affect the HR department of NIB BANK as they have to hire individuals and manage those individuals according. If for example there is a massive drive towards extremism in the society, HR will have to take steps accordingly. In Pakistan, there is a general culture in banks that whenever external auditors come to the bank the finance people manipulate their accounts to give a better picture. NIB BANK has to be very careful not to go through the same process as this has a negative effect on the bank in the long run. Since the Marketing Departments job is to understand its consumers and attract them towards their products, any shifts in the way they think or the way they perceive things will obviously affect the way any marketing strategy is devised. Cultural changes, norms and values of the general masses changing will have an impact on the sales figures. Hence the marketing department will have to forecast these trends and take actions accordingly
PRESENTED TO: PROF. MOHSIN RAUF

Technological Factors: Banks are using the latest technologies all over the country. We can see we have developed an extranet system. In which we can use online banking, we can use our accounts anywhere in the world very easily and you can get any information from any of the linked bank. Most of the businesses in Pakistan are doing transactions all over in Pakistan through banks and banks are playing very important role in peoples life due to the technology but as far as technological issues are concerned, an organisation operating in Pakistan will always face massive problems, because it is harder for our people to actually introduce new technology into the current working environment. Thus, it will take time for the people working for this department to get used to working with newer concepts

Competitive Analysis : Porters five forces The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation.

PRESENTED TO: PROF. MOHSIN RAUF

Source: http://www.mindtools.com/pages/article/newTMC_08.htm

Threat of New Entrants: Despite the regulatory and capital requirements of starting a new bank, after 2002 more than 20 banks were opened in Pakistan. These new banks entering the market each year the threat of new entrants is moderate. The banking industry has undergone a consolidation in which major banks seek to serve all of a customers financial needs under there. This consolidation furthers

PRESENTED TO: PROF. MOHSIN RAUF

the role of trust as a barrier to entry for new banks looking to compete with major banks, as consumer are more likely to allow one bank to hold all their accounts and service their financial needs. Ultimately the barriers to entry are relatively low for the banking industry. While it is nearly impossible for new banks to enter the industry offering the trust and full range of services as a major bank, it is fairly easy to open up a smaller bank operating on the regional level in the major cities or provinces of Pakistan. Bargaining Power of Suppliers: Capital is the primary resource on any bank and there are four major suppliers, various other suppliers contribute to a lesser degree of capital in the industry. 1. Customer deposits. 2. Mortgages and loans. 3. Mortgage-baked securities. 4. Loans from other financial institutions. By utilizing these four major suppliers, the bank can be sure that they have the necessary resources required to service their customers, borrowing needs while maintaining enough capital to meet withdrawal expectations. The power of the suppliers is largely based on their market, their power changes between medium to high. Bargaining Power of Buyers: The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. To try and convince customers to switch to their bank they had lower the price of switching.

The internet has greatly increased the power of the consumer in the banking industry. The internet has greatly increased the ease and reduced the cost for consumers to compare the prices of opening/holding accounts as well as the rates offered at other Pakistan based banks.

PRESENTED TO: PROF. MOHSIN RAUF

Substitutes: NIB banks largest threats of substitution are not from rival banks but from non-financial competitors. The bank does not suffer any real threat of substitutes as far as deposits or withdrawals, however insurances, mutual funds, and fixed income securities are some of the many banking services that are also offered by non-banking companies. There is also the threat of payment method for example, western union, express pay, noble loans, easy paisa etc which are the services offered by various companies. Sometimes these non-banking companies offer a lower interest rates on payments. Competitors Rivalry: The banking industry is considered highly competitive. The financial services in Pakistan has been around for 65 when this country got independence. NIB bank must attempt to lure clients away from competitor banks. They do this by offering lower financing, higher rates, investment services, and greater conveniences than their rivals. The banking competition is often a race to determine which bank can offer both the best and fastest services.

PRESENTED TO: PROF. MOHSIN RAUF

EFE matrix of NIB Bank S.No. Key External Factors Opportunities 1. Innovative Products 2. State Banks increases Paid up capital which is opportunity for larger banks 3. Govt. focusing and support for over all exports 4. ERP and Customer Relationship management System 5. Investment opportunities 6. Increasing scope of SMEs 7. Trainning to high achievers and experienced professionals 8. Extension of Intl network of branches Threats Intense Competition Uncertain economic conditions Unstable political situation in country Govt. allows union activities in organizations Inflation trend Fluctuation in Fiscal Policy by State Bank Increase in interest rates Total Score Weight 0.1 0.05 Rating 3 3 Score 0.3 0.15

0.08 0.15

4 2

0.32 0.3

0.07 0.02 0.08 0.05

3 3 3 3

0.21 0.15 0.24 0.15

0.04 0.08 0.03 0.03 0.1 0.04 0.05 1.00

3 2 2 3 3 3 2

0.12 0.16 0.06 0.09 0.3 0.12 0.1 2.77

The sum of our weighted score is 2.77, which represents that NIB Bank is responding on an above average basis to opportunities and strengths to overcome threats.

PRESENTED TO: PROF. MOHSIN RAUF

MAJOR COMPETITORS: KASB Bank HABIB Bank ( HBL) Bank of Pakistan (NBP) Competitive Profile Matrix NIB BANK S.no 1 2 3 4 5 6 Total NIB BANK BANK KASB BANK

CSF Weight Rating Score Rating Score Rating Score Advertising 0.3 2 0.6 1 0.3 3 0.9 Quality 0.1 2 0.2 2 0.2 2 0.2 Price Competitiveness 0.1 3 0.3 1 0.1 4 0.4 Position 0.15 1 0.15 2 0.3 1 0.15 Promotion 0.2 4 0.8 3 0.6 2 0.4 Placement 0.15 2 0.3 4 0.6 1 0.15 1 2.35 2.1 2.2 Internal Audit

Culture of NIB BANK: Over the years NIB BANK has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers, ensuring that it not only meets, but exceeds their expectations. NIB BANK strives to achieve excellence by ensuring that every moment of their time is spent in adding value, making sure that things are done right, first time, every time. With this quest for quality, NIB BANK has always taken initiatives in bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face-to-face customer interaction to online accessibility.
PRESENTED TO: PROF. MOHSIN RAUF

It encourages diversity and treats each of its employees with fairness, giving constructive feedback for their continuous development and seeking suggestions from all employees for further improvement. It ensures that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision-making with regards to their employees. Integrity of their employees is the strength of their performance

INTERNAL FACTOR EVALUATION (IFE)

PRESENTED TO: PROF. MOHSIN RAUF

BCG Matrix:

Star

Question Mark

Cash Cow

Dog

PRESENTED TO: PROF. MOHSIN RAUF

Space Matrix

PRESENTED TO: PROF. MOHSIN RAUF

IE Matrix IFE Score is 2.725 and EFE score is 2.77, so NIB Bank lies in quadrant 5. IFE Total Weighted Score in horizontal and EFE total weighted score in Vertical Strong High
1

Average
2 3

Weak

5 NIB Bank 7 8

Med

Low

PRESENTED TO: PROF. MOHSIN RAUF

QSPM

SWOT Analysis: Strength: NIB Bank has the following strengths: 1. 2. 3. 4. The standard of service is good and customers are satisfied. They have computerized system and online banking NIB is 7th largest bank in Pakistan with over 240 Branches. NIBs ATM are linked with a number of leading local and foreign banks as well. 5. The employees at NIB are offered reasonable monetary benefits and non monetary benefits as well.

PRESENTED TO: PROF. MOHSIN RAUF

Weakness: NIB bank has following weaknesses: 1. Branch area is very small with respect to hired employees 2. When was merged with PICIC commercial and PICIC investment bank, all their employees also became part of NIB bank, those employees needed great deal of training. 3. Online recruitment (unable to collect a pool of candidates) 4. Branch managers dont have much authority to fire an employee. Opportunities: With the strengths, the bank can snatch opportunities. NIB bank has following opportunities: 1. 2. 3. 4. Many areas for opening new branches in Pakistan. Great market potential. Increase credit facilities to lower income level and to SMEs. In the economy of Pakistan where other banks are very carefully lending the different loan, NIB is giving personal loan in huge quantity. This results in great market share in future.

Threats In the context of Banks NIB external environment, existentially following are the potential threats: 1. 2. 3. 4. 5. Devaluation of money in Pakistan Already many huge banks are doing business in Pakistans banking sector. Foreign banks creating their value in the eyes of customers. Huge competition with local and foreign banks. New entrants with new security plans to stop data hacking and viruses.

As compared to its competitors it is on growth stage its competitors are playing this game strategically to dont overcome others.
PRESENTED TO: PROF. MOHSIN RAUF

Economically Pakistan is in crises but still Pakistan is Asias most reliable economy so economy is not very big thread for it. According to political threads few years back Pakistans politics was instable which was infecting financial investments and loans but its almost stable so political thread is also not a big issue for this bank. Demographically people feel not safe so they dont carry money with them thats why banks are their most important preference to deposit their money in them.

PRESENTED TO: PROF. MOHSIN RAUF

Management Planning is the very important part in the success of an organization. NIB bank management took the feedback from their employees and decisions are fully made on the higher level of management they just plan and forecast about future by top management. This is the team of executive committee: Badar Kazmi Adil Rashid Uzma Khan Shah Miftaah Ul Azim Azmi Khusro Mumtaz Yameen Kerai Tufail Jawed Ahmad Ahmed Fawad Hashmi Khurram Gul Agha Najeeb Gilani Asma Shaikh Rahim Valliani Director, President and CEO Group Head Consumer Head - Strategic Business Development Group Head - Treasury & Capital Markets Group Head SME & Commercial Banking Chief Financial Officer Chief Risk Officer Head of Special Asset Management Group Head - Operations and Technology Head of Internal Audit Group (IAG) Group Head Human Resources Head of Business Planning and Analysis

NIB bank tries to specialized their employees in their work field so they organize the work very efficiently everyone knows their work they are specialized in their work. Bank is purely departmentalize to make it easy for employees. Management purely believe in delegation of power, management knows if the lower managers have the rights to do just on time then its important for them to have the authority to deal with it.

PRESENTED TO: PROF. MOHSIN RAUF

Assessing current human resources begins by developing a profile of the organizations current employee. Generally there are two methods: Human resources inventory report Human resource information system NIB bank used HRIS Human Resource Information system (HRIS): It is a computerized system that assists to find out how many employee an organization has currently. In other words we can say it is data base system NIB bank is support information technology for enhancing bank services, without the usage of computer no organization exist in this world thats why like other banks NIB bank have HRIS to find out information of its current employee. Marketing: NIB focusing to create the desire of banking in the consumers and trying to maintain their product to satisfy them. Marketing team is more focusing on the betterment of product keep changing in the product so consumers get best satisfaction. They are selling their services I a very unique manner somehow it is different from the other banking channels they are focusing on branch selling and in other mediums they are using adds on TV and newspaper, bill boards and personal calling is also involve. Services wholly planned by management on the feedback of consumers and staff also to diversifying their product and make them unique.

PRESENTED TO: PROF. MOHSIN RAUF

MIS IN NIB BANK


Temasek Holdings of Singapore continues to be the largest single investor in NIB Bank with a stake in excess of 88% they are using MIS name VIRSES.

With the help of information technology NIB BANK record the daily transactions that took place from all over the Pakistan into a centralized database in real time, which means there is no Batch processing is taking place in NIB all over the Pakistan. Every bank branch is an online branch, which is directly connected to the centralized server to keep the data up to date to avoid any problems. As time is money, and due to NIB BANK make thousands of transactions per day. In fact, IS makes whole process much more quickly, simple and reliable. Due to IS employees can easily connect with other branches, customer service gets improved, online banking emerged and lot of others benefits.

EBBS
Core banking is the heart of any organization; NIB BANK core banking application is EBBS (Electronic Basic Banking System) which is the actual strength of this bank. EBBS is the single software suit that work on these basic modules Saving / Current Accounts Customer Information System New Accounts Demand Deposits Clearings Time Deposits Loans Credit Lines Automatic Transfers Tax Information Cashiers Checks

PRESENTED TO: PROF. MOHSIN RAUF

ECAP (ELECTRO NI C SYSTEMS)

CARD PROCESSING

Another core banking application that NIB BANK is using is ECAP (Electronic Card Processing System) which is used to manage all the Credit and Debit Cards of the account holders. The software has these two basic modules Debit Card Credit Card

S ERVERS O F NIB BANK


NIB BANK has a centralized server machines running day and night to ensure the maximum uptime and topnotch quality to their applications, which dramatically support their whole business process. The bank servers resides in different cities and data centers of Pakistan i.e. Karachi, Lahore, Islamabad and all of them are interconnected with each other for real time data update and synchronization.

RETURN ON INVESTMENT
NIB BANK is financially strong so it has invested the of its partners and shareholders in the huge amount and there rate of return on its whole investment is 46% and by there research and development department focuses on the new needs of the customers . R&D is doing its job well this good return on investment is the result of its progress and growth

Growth of the Company Any company whose activity generates significant positive cash flows or earnings that are growing at significantly faster rate than the overall economy. A growth of
PRESENTED TO: PROF. MOHSIN RAUF

company tends to be very profitable reinvestment opportunities for its own retained earnings. Thus, it usually pays little or no dividends to shareholders, opting instead to plow all or most of its profits in its expanding business. NIB BANKs growth strategy involves investing in: A system capable of supporting volumes and product innovation Hiring the best in the market Training and development Establishing credit controls to achieve sustained income as well as growth In accordance to the above elements of the growth strategy followed by NIB BANK, it also happens to have a divisional structure. NIB BANK is a gigantic organization, which has many different branches to it, for example, consumer banking, corporate banking, investment. Also it is spread out across the country, thus, following a flatter organizational structure which proves to be a lot easier to manage as per its vast geographical coverage, variety of different products and services and a substantially diverse customer base. Products & Marketing

Auto finance Charges in Rupees. Description Application processing Late payment Cheque return Earlier termination Cheque Vehicle repossessing Issuance of duplicate NOC Appraisal charges PO change 4000/500/500/- per Cheque return 500/- of principle outstanding 500/- as per approval Up to 1500/Up to 7500/2000/Rupees

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Auto Lease Description Documentation Front & fee Delayed rental Cheque returned Earlier termination Broken period mark up Vehicle possession Change of assets Up to 1000 CC Above 1000 CC Property//Mortgage loan Description Rupees Application processing 7500/Appraisal fee As per actual 3000/-

Rupees As per approval 2.00 % per returned Cheque 500/- per Cheque 6.00 % of outstanding As per approved rate 50,000/-

Issuance of duplicate transfer letter 1500/1500/-

PRESENTED TO: PROF. MOHSIN RAUF

Legal fee Cheque return Prepayment penalty Late payment Litigation

As per actual 600/- per Cheque 5% of principle outstanding 500/As per actual

Loan enhancement fee 5000/-

NIB personal loan Description Application processing Life insurance premium Cheque return Repayment penalty Late payment Small business loan Facility charges Late payment Repayment Credit life insurance a) accident insurance b) full insurance

Rupees 1% of loan or 1500/- whichever higher Accident 1.5% of loan 500/- per Cheque return 1st year 5%,2nd & on 3% on outstanding 500/- or 10% of the due installment 1.5 of the loan or 2000/- (higher) 10% of the installment 5% of the outstanding

1.5 % of the loan 3.0 % of the loan

Enhancement & top up fee 1500/NIB committee

PRESENTED TO: PROF. MOHSIN RAUF

Services charges 3% of gross deposit amount (for every new deal) ATM card ATM card annual fee ATM issuance fee ATM card reissuance in case if lose, stolen and damaged card

100/Nil Nil

ATM transaction service Financial transaction (1 link & M_net) Financial transaction (only M_net)

15/05/-

Lockers Description Annual rent Broken charges

Small

Medium

Large

Securities deposit(refundable) Up to Rs 3500/- Up to Rs 5000/- Up to Rs7500/Up to Rs 2500/- Up to Rs 3500/- Up to Rs 5000 Up to Rs 5000/- or actual, whichever higher

Sale and purchase of securities Sale & purchase of Up to 0.50% on the first 10,000 on the paid up value of shares and securities minimum 125/- up to 10,000 0.20% will charged Charges of collection of return & dividend Up to 0.30% on the amount of interest And Rs 100/- whichever is higher

Agriculture Finance
PRESENTED TO: PROF. MOHSIN RAUF

Entries ready for purchase of fertilizers, seeds, pesticides, Diesel , Water / Electricity & Labor for small holder farmers as well as having above remaining appropriate Land Holding against guarantees and collateral security with the group life insurance for borrowers with adjustable cost of its time year.14 % PA. Adjustable three years renewable once in a year of credit No Limit fixed for Agriculture Land Bank. Mortgage Urban / Rural property in Big loan amount . A standard loan documents Time for three years. Tractor loans for the purchase of agricultural or having minimum for farmers 5 hectares of land Holding and above recording tractor Bank name with Comprehensive Tractor Group insurance and life insurance costs the borrower on his 20% to 40 % of treasury shares 14 % PA Five years adjustable from 10 bi- annual installments up to Rs = 1.000 Charge of the Bank for Agriculture and land tractor in the Documents Name loan from Standard Bank & Higher purchase agreement with two guarantees Product Kiosk transaction service Phone banking Direct pay Online transaction Charges NIL NIL NIL NIL

Cash guard Monthly services charges Rs 1500/NIB promise Tern deposit Monthly services charges Rs 1500/PRESENTED TO: PROF. MOHSIN RAUF

Recommendations Following I will give the best performance for the suggestions of the Bank: Duties will offer employees better management mechanism . A separate counter of ladies you should be there The Bank's services should be very careful as the granting of loans. Personal Interests homework is not given importance and clients Solvency care staff must be used with the public relations desk duties are, they laid in each branch orientation, and the complaints of clients right on the spot. Online banking should be in all branches entered. Campaign advertising should be aggressively introduced through the press and media to new electronic products and vigorous marketing plan policy Starting event. New talents / professionals to front contracted service should have asked in the Industrialized competitive. Information technology should be enter in all branches to improve the efficiency. The duties of the most transparent financial statements are reliable there. Duties Financing consumption is beginning to capture the market share.

PRESENTED TO: PROF. MOHSIN RAUF

Promoting the induction of employees there always transfer duties on merit to Haran. To motivate employees has managed compensation / salaries should be with you by top tier banks made.

PRESENTED TO: PROF. MOHSIN RAUF