Development phase of national bank of pakistan

DEVELOPMENT PHASE OF NATIONAL BANK OF PAKISTAN

* FORMATIVE STAGE 1950s

National Bank of Pakistan was established with authorized capital of Rs. 50 million and issued capital of 15m of which government paid 25%, the balance was offered to the public. The shares offered to the pubic were floated in 1950.

In May 1952 the National Bank of Pakistan started taking over government treasury work from the imperial bank of India and successfully completed the process by end of September. By the end of December 1959 National Bank of Pakistan was undertaking treasury operation and managing currency chests at 57 of its offices, where the turnover of business under the head amounted to Rs. 2460 million.

1. PERIOD OF EXPANSION 1960s

The bank undertook a programme of expansion branch was expanded and by 1959 it has 129 branches it carefully selected locations in both wings of the country as against only 17 branches in 1950. . By the end of December 1969 National Bank of Pakistan had 720 branches 713 at home and 7 in foreign countries. The end of 1960s made considerable overhead in the bank electronic according programmers. It completed the computerization of remittances received from abroad and studies were undertaken to computerize other areas.

* PERIOD OF REORGANIZATION & DEVELOPMENT 1970s

National Bank of Pakistan along with 14 scheduled Pakistani banks was nationalized by the promulgation of banks ordinance 1974. Shares not held by the government were acquired from the private holders after compensation them. Its present shareholding is 93.4% is held by the state bank of Pakistan 5.3% by government of Pakistan and 1.3% by shareholders. An executive board headed by the president and four members replaced the previous.

Bank deposits rose from Rs. 3.3 billion in 1970 to Rs. 198.6 billion in 1979, more than four and half times increase. Advances catered to the requirements of both public and private sectors. Domestic advances / deposits ratio was 61.9% in 1979, due to efforts to keep the banks operations within the authorized credit expansion.

* CHALLENGES AND NEW INITIATIVES THE 1990s

The early nineties witnessed weakening of institutional setup through political interference. However, legal reforms were completed by May 1997

The bank has 12 regional computer centers to cover various online and batch system requirement of branches and controlling offices. National Bank of Pakistan has presence on the Internet.

In may this year 1998 inter city ATM network and the swift center took place at the main branch of National Bank of Pakistan Lahore. This facility provides modern satellite based communication technology to its customer for prompt and convenient cash transaction, remittances round the clock.

In 1996, National discounting services Ltd was launched as a wholly owned subsidiary of National Bank of Pakistan, with a capital base of Rs. 500 million to assist commerce, industry and to financial sector in the discounting trade bills / letters of credit/ accounts receivable. Government securities and shares of listed companies.