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 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.

1) 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.

2) 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.

3) INDUSTRIAL POLICIES
NBP helps the government on the implementation of its industrial
policies with respect to economic growth of the country.

4) 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.

5) 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.

6) 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 option 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:

1) 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.

2) 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.

3) 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.

1) 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.

2) GOODWILL AND BETTER IMAGE

NBP has advantage of generating 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.
3) 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:

1) 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.

2) 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.

3) 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.