Na­tional De­vel­op­ment

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Is­lamic Bank­ing at Na­tional Bank of Pak­istan

NBP is proud to ex­pand its range of prod­ucts and ser­vices to in­clude Shariah Com­pli­ant Is­lamic Bank­ing prod­ucts, now avail­able at our ded­i­cated Is­lamic Bank­ing Branches at Karachi, La­hore and Pe­shawar.


“To be­come a lead­ing player in the grow­ing field of Is­lamic Fi­nance in Pak­istan and abroad, pro­vid­ing de­pos­i­tors and share­hold­ers in a truly SHARIAH COM­PLI­ANT way, the best com­bi­na­tion of re­turns and fu­ture growth”


To set stan­dards of best prac­tices and per­for­mance through ef­fi­cient as­set al­lo­ca­tion, and of­fer / de­velop prod­ucts based on the true spirit of Is­lamic fi­nance.


Prod­ucts and ser­vices be­ing of­fered by our Is­lamic Bank­ing Branch are fully Shariah Com­pli­ant and have been cer­ti­fied by NBP’s Shariah Ad­vi­sor.

Core val­ues

• High­est stan­dards of In­tegrity • In­sti­tu­tion­al­iz­ing team work and per­for­mance cul­ture • Ex­cel­lence in ser­vice • Ad­vance­ment of skills for to­mor­row’s chal­lenges • Aware­ness of so­cial and com­mu­nity re­spon­si­bil­ity • Value cre­ation for all stake­hold­ers


To en­hance prof­itabil­ity and max­i­miza­tion of NBP share through in­creas­ing lever­age of ex­ist­ing cus­tomer base and di­ver­si­fied range of prod­ucts.

Bank’s Man­age­ment has es­tab­lished and is man­ag­ing an ad­e­quate and ef­fec­tive

sys­tem of In­ter­nal Con­trol which en­com­passes the poli­cies, pro­ce­dures pro­cesses and tasks as ap­proved by the Board of Direc­tors that fa­cil­i­tate ef­fec­tive and ef­fi­cient op­er­a­tions. The man­age­ment and the em­ploy­ees at all lev­els within the bank are

re­quired to per­form as per th­ese ap­proved In­ter­nal Con­trol Sys­tem com­po­nents. The In­ter­nal Con­trol Sys­tem en­sures qual­ity of ex­ter­nal and in­ter­nal re­port­ing, main­te­nance of proper records and pro­cesses, com­pli­ance with ap­pli­ca­ble laws and reg­u­la­tions, and in­ter­nal poli­cies with re­spect to con­duct of business.

The man­age­ment en­sures that an ef­fi­cient and ef­fec­tive In­ter­nal Con­trol Sys­tem is in place by iden­ti­fy­ing con­trol ob­jec­tives, re­view­ing ex­ist­ing pro­ce­dures and poli­cies and en­sur­ing that con­trol pro­ce­dures and poli­cies are amended from time to time wher­ever re­quired.

How­ever, In­ter­nal Con­trol sys­tem is de­signed to man­age rather than elim­i­nate the risk of fail­ure to achieve ob­jec­tives and pro­vide rea­son­able but not ab­so­lute as­sur­ance against ma­te­rial mis­state­ment or loss.

Eval­u­a­tion of In­ter­nal Con­trol

The Bank has an in­de­pen­dent In­ter­nal Au­dit & In­spec­tion func­tion in the name of Au­dit & In­spec­tion Group with three Au­dit Of­fices that con­duct au­dit of branches, Re­gions and Groups at Head Of­fice on an on-go­ing ba­sis to eval­u­ate the ef­fi­ciency and ef­fec­tive­ness of In­ter­nal Con­trol Sys­tem. In ad­di­tion to that Com­pli­ance set up is also in place with 130 in­de­pen­dent Branch Com­pli­ance Of­fi­cers in cat­e­gory III Branches and 28 Re­gional Com­pli­ance Of­fi­cers and a Branch Com­pli­ance Of­fi­cer in Sub-re­gion

Gil­git with sup­port­ing staff to take care of Com­pli­ance re­lated is­sues to strengthen the con­trol en­vi­ron­ment.

For the year 2010 the Bank has made its best ef­forts to en­sure that an ef­fec­tive in­ter­nal con­trol sys­tem con­tin­ues to per­form in let­ter and spirit. The ob­ser­va­tions made by the ex­ter­nal / in­ter­nal au­di­tors and SBP In­spec­tion team in their re­spec­tive au­dits / in­spec­tions are promptly re­viewed and mea­sures are taken by the Board, Board Au­dit Com­mit­tee and man­age­ment for rec­ti­fi­ca­tion of such ob­ser­va­tions to safe­guard the Bank’s in­ter­est.

We as­sess that the in­ter­nal con­trol en­vi­ron­ment is show­ing signs of im­prove­ment as com­pared to pre­vi­ous years. The Bank is en­deav­or­ing to fur­ther re­fine its in­ter­nal con­trol de­sign and as­sess­ment process as per guide­lines is­sued by the State Bank of Pak­istan. Ac­cord­ingly, Bank is mak­ing all pos­si­ble ef­forts to im­prove the pro­fes­sional skills and com­pe­tency level of staff through need based train­ing pro­grams.

Sharia’h Ad­vi­sor’s

I) The business and over­all af­fairs of Is­lamic bank­ing branches car­ried out dur­ing the year 2010 are in ac­cor­dance with Shariah prin­ci­ples and also th­ese af­fairs are in com­pli­ance with SBP Shariah guide lines. I found the ac­tiv­i­ties

ac­cord­ing to the guide lines is­sued by Shariah Ad­vi­sor from time to time dur­ing the pre­vi­ous years and cur­rent year.

II) A num­ber of new Ijarah, Murabaha and Di­min­ish­ing Musharika trans­ac­tions were ex­e­cuted suc­cess­fully.

The profit and loss shar­ing scheme (PLS) was launched last year, Dur­ing cur­rent year more cat­e­gories were added to it. All PLS schemes were man­aged ac­cord­ing to Shariah prin­ci­ples and the Shariah guide­lines is­sued by the State Bank of Pak­istan.

Dur­ing the year, for the first time, spe­cial pools were cre­ated to match the spe­cial profit rates of­fered to the cus­tomers. The spe­cial pools were man­aged prop­erly through proper doc­u­men­ta­tions.

III) Any earn­ings that have been re­al­ized from pro­hib­ited sources or by declar­ing the trans­ac­tion void (Fasid) have not been pointed out yet with the grace of Al­lah Taala. Is­lamic Bank­ing Di­vi­sion re­ceived an amount of three mil­lion eight thou­sand three hun­dred and fifty ru­pees (Rs. 3,008,350) in char­ity ac­count. This amount was dis­trib­uted equally to the three ap­proved char­ity or­ga­ni­za­tions as per the pol­icy of the char­ity.

IV) Is­lamic Bank­ing Di­vi­sion ap­pointed a Shariah Com­pli­ance Of­fi­cer, and he

car­ried out a de­tailed Shariah com­pli­ance au­dit.

V) NBP also con­ducted a Shariah Au­dit dur­ing the year.

VI) The staffs of Is­lamic bank­ing branches were trained dur­ing 2010 in Is­lamic

Bank­ing and fi­nance through com­pre­hen­sive cour­ses. Code of Cor­po­rate ate Gov­er­nance The Bank has com­plied with the prin­ci­ples con­tained in the Code in the fol­low­ing man­ner.

1. The Board of Direc­tors of the Bank is ap­pointed by the Gov­ern­ment of Pak­istan (GoP) as per the pro­vi­sions of the Bank’s (Na­tion­al­iza­tion) Act. 1974. At present all the Direc­tors (Ex­cept for the Pres­i­dent / Chief Ex­ec­u­tive who is also the Chair­man of the Board ) are in­de­pen­dent non-ex­ec­u­tive Direc­tors, in­clud­ing the Di­rec­tor rep­re­sent­ing mi­nor­ity share­hold­ers as re­quired by the Code.

2. Direc­tors have con­firmed that none of them is serv­ing as a Di­rec­tor in more than ten listed Com­pa­nies in­clud­ing the Bank.

3. All the Direc­tors of the Bank are regis­tered as Tax Pay­ers and none of them has de­faulted in

pay­ment of any loan to Bank­ing Company, a DFI or an NBFI or be­ing a mem­ber of Stock Ex­change, has been de­clared as de­faulter by the Stock Ex­change.

4. Dur­ing the year Two Direc­tors Mr. Ibrar A Mum­taz and Mian Kausar Hameed Com­pleted their ten­ure of direc­tor­ship of three years on 30th March 2010, who were ap­pointed in terms of Sec­tion 11 (III-A) of Banks Na­tion­al­iza­tion Act, 1974.Fed­eral Gov­ern­ment nom­i­nated Ms Nazrat Bashir in place of Mr. Muhammed Ayub Khan Tarin on 01-03-2010 as Di­rec­tor on the Board of Na­tional Bank of Pak­istan.

5. The Direc­tors have con­firmed that nei­ther they nor their spouses are en­gaged in the Business of Stock Bro­ker­age.

6. The Bank has pre­pared “State­ment of Ethics and Business Prac­tice” which is al­ready ap­proved by the Board of Direc­tors.

7. Board has ap­proved the Vi­sion, Mis­sion, Core Val­ues, Ob­jec­tives and NBP Strate­gic Plan.

8. The Bank has com­pre­hen­sive frame work of writ­ten poli­cies and pro­ce­dures on all ma­jor ar­eas of Op­er­a­tions such as Credit, Trea­sury Op­er­a­tions, Fi­nance, In­ter­nal Au­dit and Com­pli­ance, etc. Many of th­ese poli­cies have been ap­proved by the Board and are be­ing con­stantly re­viewed.

9. There ex­ists in the Bank a frame­work defin­ing the limit of the au­thor­ity of var­i­ous Man­age­ment lev­els. All the pow­ers were ex­er­cised by the rel­e­vant au­thor­i­ties within the ma­te­ri­al­ity thresh­olds.

10. All the Pow­ers of the Board have been duly ex­er­cised and de­ci­sions on ma­te­rial trans­ac­tions have been taken by the Board.

11. The meet­ings of the Board of Direc­tors were presided over by the Chair­man. The Board met

10 times dur­ing the year, writ­ten no­tices of the Board meet­ings, along with Agenda Credit & Risk Man­age­ment

Risk man­age­ment func­tion has been re­struc­tured and made in­de­pen­dent of all risk tak­ing and ap­prov­ing units. Its func­tional re­port­ing is to the Board of Direc­tors and ad­min­is­tra­tive re­port­ing to the Pres­i­dent of the bank. An ex­ec­u­tive risk man­age­ment com­mit­tee has been es­tab­lished to em­pha­size on the bank’s com­mit­ment to a ro­bust risk man­age­ment process and risk cul­ture. In com­pli­ance with the risk man­age­ment guide­lines, is­sued by SBP, an op­er­a­tional risk man­age­ment unit has been es­tab­lished. An op­er­a­tional loss data­base, risk & con­trol self as­sess­ment (RCSA) ex­er­cise and key risk in­di­ca­tors (KRIs) are be­ing de­vel­oped and will sub­se­quently be im­ple­mented. A sep­a­rate credit risk ar­chi­tec­ture unit has also been formed for for­mu­la­tion/ propo­si­tion of credit risk strate­gies, poli­cies, credit as­sess­ment method­olo­gies, credit port­fo­lio/sec­tor man­age­ment. A ded­i­cated Basel II unit is re­spon­si­ble for man­ag­ing the Basel II project in close co­or­di­na­tion with the con­sul­tant and with the ac­tive support & in­volve­ment of other func­tions across the bank.

NBP CSR Di­vi­sion

Cor­po­rate So­cial Re­spon­si­bil­ity for a business en­tity is an out go­ing com­mit­ment to be­have eth­i­cally and con­trib­ute to eco­nomic de­vel­op­ment while im­prov­ing the qual­ity of life of the lo­cal com­mu­nioty in which it is op­er­at­ing. It is about ca­pac­ity build­ing for sus­tain­able de­vel­op­ment.

Na­tional Bank of Pak­istan al­ways re­mains com­mit­ted to to ex­plor­ing op­por­tu­ni­ties and av­enues for up­lift­ing peo­ple’s lives across all prov­inces. the bank’s CSR Pro­gram leaves no stone un­turned in the of re­mov­ing and re­duc­ing the chal­lenges faced by in­di­vid­u­als from dif­fer­ent walks of life

NBP CSR Pro­gram re­volves around the doc­trine that there is more to come - am­bi­tious plans, higher de­gree of com­mit­ment and a strong belief to make the na­tion one of the great­est in the world.

Be­ing fully aware of its so­cial obli­ga­tions, it con­tin­ues to proac­tively con­trib­ute to­wards so­cial wel­fare, health­care, ed­u­ca­tion etc to help im­prove the qual­ity of life for the un­der­priv­i­leged mem­bers of the coun­try. In the last 6 months NBP’s so­cial support ac­tiv­i­ties were speeded up, and it also ex­tended support to a num­ber of char­i­ta­ble in­sti­tu­tions to

• Up-Gra­da­tion Car­di­ol­ogy Care unit of GMC Hos­pi­tal Sukkur Med­i­cal Camp at Gad­dani, Baluchis­tan

• Med­i­cal Camp at Win­der, Baluchis­tan

• Pa­tients Wel­fare So­ci­ety Shaikh Zaid Hos­pi­tal

• Mo­ti­va­tional Vol­un­teer Em­pow­er­ment Pro­gram (MOVE)

• De­vel­op­ment of Com­puter Train­ing Cen­tre at Lyari

• Women and Child Wel­fare

• Dis­tri­bu­tion of Sewing ma­chine to Des­ti­tute women

• Spon­sor­ship - De­vel­op­ment of Bus Wait­ing Ar­eas (Women) at Sialkot

• Women Foot­ball & Hockey Coach­ing Camp.

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