Project Report NBP by babar262

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									   Marketing Management:
       A Case Study of
National Bank of Pakistan (NBP)

         19 Feb, 2011

         Prepared By
     Rafique Nancy 5152,
     Salman Ahmed 5182
    Komal Benjamin 5276,
     Khurram Baber 5141
First and foremost let us sincerely thank ALMIGHTY for the great opportunity and
blessing that he has showered up on us for the successful and timely completion of
our project work.

We very great fully wish to forward due respect and thanks to our MMR teacher Sir
Santosh Kumar for his teaching and continues, creative, valuable, and informative
support, with out which the project would not have been efficiently completed.

We are extremely indebted to the management of National bank of Pakistan head
office Karachi, A.D Tahir Chief Operation’s manager NBP main branch Karachi
who gave us the privilege to carry out our project in their distinguished organization.
Let us take this opportunity to thank all the National Bank’s staff for their help and

Once again we take this opportunity to convey our sincere thanks to each and every
person who helped us directly and indirectly in the successful completion of this

All Team Members.

 i. History & Introduction of NBP

 ii. NBP Positioning

 iii. Objective of NBP

 iv. Function of NBP

 v. Unmatched Banking Services of NBP

 vi. Target Market

 vii.   Marketing Mix

 viii. SWOT Analysis

 ix. Conclusion & Remarks

The NBP was established vide NBP Ordinance No. XIX of November 9. 1949.

British Govt. devalued its currency in September 1949, India devalued its rupees
but Pakistan did not. It led to a crisis in trading between the two countries and
India refused to lift the Pakistan Jute. To solve this problem i.e. to export jute
NBP was established through an Ordinance of GOP. National Bank of Pakistan
maintains its position as Pakistan's premier bank determined to set higher
standards of achievements. It is the major business partner for the Government
of Pakistan with special emphasis on fostering Pakistan's economic growth
through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches locally,
internationally and representative offices.

The Bank in 1950 had one subsidiary „The Bank of Bahawalpur‟ on December4,
1947 by the former Bahawalpur State.

NBP was undertaking Treasury Operations and Managing Currency Chests or
Sub Chests at 57 of its offices where the turnover of the business under the head
amounted to Rs.2460 million.

 i)      Deposits held by NBP constituted about 3.1% of total deposits of all

 Pakistani Banks in 1949, which rose to 38% in 1952.

 ii)     Growth in Deposits was accompanied by increase in Bank portfolio in
advances. NBP lent out to Textile, Yarn, Iron and Steel and played a pioneer role
in support of agriculture and commerce.

      iii) NBP advances reached Rs.554.4 million by December 1959, which was
            one third of the total schedule bank credit.
   National Bank of Pakistan is the largest commercial bank operating in
   Pakistan. It has redefined its role and has moved from a public sector
   organisation into a modern commercial bank. While it continues to act as
   trustee of public funds and as the agent to the State Bank of Pakistan (in
   places where SBP does not have a presence) it has diversified its business
   portfolio and is today a major lead player in the debt equity market, corporate
   investment banking, retail and consumer banking, agricultural financing,
   treasury services and is showing growing interest in promoting and
   developing the country's small and medium enterprises and at the same time
   fulfilling its social responsibilities, NBP headquarters in Karachi, Pakistan with
   over 1,200 branches country wide. The bank provides both commercial and
   public sector banking services. It has assets worth USD 12.293 billion in
   2007. Its subsidiaries include NBP Capital, NBP Modaraba Management
   Company, NBP Exchange Company, Taurus Securities, NBP Almaty and


 “To make the Bank complete and competitive with all international Standard in
 performing, quality of, operations, staff, financial strength. And products and
 services to develop a culture of excellence in every spare of activity of the


“To be the pre-eminent financial institution in Pakistan and achieve market
recognition both in the quality and delivery of service as well as the range of
product offerings.”
To be recognized as a leader and a brand synonymous with trust, highest
standards of service quality, international best practices and social responsibility.

NBP truly the Nation’s Bank, because of
• Institutionalizing   a merit and performance culture.
• Creating a distinctive brand identity by providing the highest standards of
• Adopting the best international management practices.
• Maximizing stakeholders value.
• Discharging our responsibility as a good corporate citizen of Pakistan and in
countries where we operate.


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

NBP further consolidated its position as one of the top players in corporate and
investment banking of the country and has built a strong customer relationship
with the premier corporate clients.
Objectives of NBP

National bank of Pakistan is also a commercial organization and its main
objective is profit maximization. This is achieved in two ways:

   1. By increasing deposits.

   2. By charging interest on loans provided to the private sector and business

These are explained as:

Increase in deposits:

Competition in banking is intense and every bank whether it is Pakistani, foreign,
private or nationalized tries to increase its deposits by providing better facilities to
its customers. By increasing its deposits a bank can extend greater amount of
loan and hence achieves higher profit. NBP is also improving its facilities and
services to attract customers with higher volume of deposits. There are two main
factors involved in increasing the deposits. These factors are improving the
services and courtesy. NBP is continuously working on these two factors to
increase its deposits.

Extension of loans:

The profitability of a bank largely depends on the amount given to people as loan
and the type of people to whom credit is given i.e. the credit worthiness of the
borrowers. This strategy has worked quite well for NBP. Deposits are collected
from the people and invested in different projects. NBP prefers to give loans to
financially sound and reliable parties, after securing the collators. NBP has an
extremely well organized section. The staff is adequately trained, and educated
and competent. They carry out extensive financial analysis before deciding on
the loan. Interest charged on the loans potentially contributes to higher profits.
Some of the other objectives of NBP are:

      i.   Improve customer services.

      ii. Quick disposal of credit cases.

      iii. Efficient operation of the branches.

      iv. Better Public Relations.

      v. Operational and advisory services for foreign exchange accounts activities


Since NBP is a commercial bank, it performs a variety of functions.

Like other commercial banks, NBP is engaged in financing international trade.
Its other major functions include receiving deposits, advancing loans and
discounting of exchange. The functions performed by NBP are:

Accepting Deposits

This function is important because banks largely depend on the funds deposited
with them by its customers. Deposits are of many types:

i.         Current deposits

Current deposits are also called demand liability on current deposits. NBP pays
practically no interest on current deposits. Businessmen usually open current
accounts. In NBP current account can be opened with a minimum amount of

ii.        PLS saving deposit

Profit and loss sharing deposits (PLS) are also called checking accounts. One
can deposit and draw money easily. Profit on PLS is calculated every month but
paid after six months. PLS account can be opened with a minimum amount of
iii.         PLS term deposits

Fixed term deposits are deposits with the bank for certain fixed period before the
expiry of which they cannot be withdrawn unless giving due notice. In this case
the rates of profit will be different depending upon the time period.

Discounting bills of exchange

Discounting of bill is practically speaking lending for exchange at their market
rate i.e. it pays to holder of the bill an amount equal to the face value after
deducting interest at the current market rate for the period. This bill has to be
mature. This is the common way used for keeping a part of assets of the bank in
a liquid form.

Agency service

NBP also provides best and unique service to its valued customers. NBP provide
the following agency services to the customers:

       i.     Collection of dividends

As NBP deals with the purchase and sale of various types of securities, therefore
NBP also provide dividend or interest earned on share or bonds or invested

       ii.    Collection of Cheques

In the collection and payment of Cheques, bills and promissory notes etc.
National bank of Pakistan acts as an agent for its customers.

       iii. Acting as an agent

NBP also acts as an agent correspondent or representative for its customer at
home or abroad.
iv.    General utility services:

Utilities provided by NBP are as follows:

a.     Clearance of utility bills

NBP provides the service of clearing the utility bills i.e. electricity, gas and
telephone bills of its customers. For this purpose it also provides evening banking

b.     Lockers facility

National bank of Pakistan also provides locker facilities to its customers to keep
their valuable assets in it. The charges of different size of lockers are different.

c.     Acts as a referee

NBP provides useful services to its customers by acting as a referee to their
credit worthiness.

d.     Supply of information

NBP    provides      operational   and   advisory service    for   foreign   exchange
Unmatched Banking Facilities

         Deposit security, Guaranteed by Government of Pakistan.

         Highest rates of return to attract the savings.

         Lowest rates on exports and other borrowings.

         Largest contribution towards Government and Semi-Government

         Agents of the SBP handling Treasury Functions, receipts of Taxes &
           other Revenues.

         Handling      of   salaries   &   pensions   of   federal/provincial/defense

         Hajj arrangements.

         Sale and encashment of Defense Savings and Special Savings

         Safe Deposit Lockers for customers.

         Rational Human Resource Management.

The prestigious periodical “The Banker” UK recognized NBP as the best bank for
2001-2002 and NBP is the bank of the year for 2004-2004 of Pakistan.

   i.   AAA rating awarded JCR-VIS Credit co. Ltd and affiliated of Japan Credit
        Rating Agency for 2001.

   ii. AAA+1 rating awarded JCR-VIS Credit Co.Ltd and affiliated of Japan
        Credit Rating Agency for 2002
NBP at the forefront of Pak-Afghan trade

   i.   Booth at dry port Peshawar

   ii. Booth at Pak Afghan border (Torkham) NWFP

   iii. Booth at Pak Afghan border (Chamman). Baluchistan.

   iv. Establishing branch at Kabul.













  Deposit security, Guaranteed by Government of Pakistan.

  Highest rates of return to attract the savings.

  Lowest rates on exports and other borrowings.








Services are outputs of the firm, which are in intangible form. Which are the
backbones of any organization to earn profit. NBP offers the following services to
the people.


If you are looking for a safe, speedy and reliable way to transfer money, you can
now purchase NBP‟s Demand Drafts at very reasonable rates. Any person
whether an account holder of the bank or not, can purchase a Demand Draft
from a bank branch.


The    SWIFT     system     (Society   for   Worldwide   Inter   bank      Financial
Telecommunication) has been introduced for speedy services in the area of
home remittances. The system has built-in features of computerized test keys,
which eliminates the manual application of tests that often cause delay in the
payment of home remittances. The SWIFT Center is operational at National
Bank of Pakistan with a universal access number NBP-APKKA. All NBP
overseas branches and overseas correspondents (over 450) are drawing
remittances through SWIFT.

Using the NBP network of branches, you can safely and speedily transfer money
for our business and personal needs.


NBP is committed to offering its business customers the widest range of options
in the area of money transfer. If you are a commercial enterprise then our Letter
of Credit service is just what

you are looking for. With competitive rates, security, and ease of transaction,
NBP Letters of Credit are the best way to do your business transactions.

Traveler‟s cheques are negotiable instruments, and there is no restriction on the
period of validity of the cheques. Rupee traveler‟s cheque is available at all 700
branches of NBP. This can be encashed in all 400 branches of NBP. There is no
limit on purchase of this cheque. It is one of the safest ways for carrying money.


NBP provides another reason to transfer your money using our facilities. NBP
pay orders are a secure and easy way to move your money from one place to
another. And, as usual, NBP charges for this service are extremely competitive.
The charges of NBP are very low all over the Pakistan. It charges Rs 50/- for
NBP account holders on issuing one payment order. And charges Rs 100/- for
NBP non-account holders on issuing one payment order. It charges Rs 25/- for
students on payment of fees of educational institutions. If some one want a
duplicate of payment order they charges Rs 100/- for NBP account holders and
Rs 150/- for non account holders.


Move your money safely and quickly using NBP Mail Transfer service. And NBP
also offers the most competitive rates in the market. They charges Rs 50/-
exchange rate and RS 75/- postage charges on issuing mail transfer.


To facilitate its customers in the area of Home Remittances, National Bank of
Pakistan has taken a number of measures to:

      Increase home remittances through the banking system

      Meet the SBP directives/instructions for timely and prompt delivery of
       remittances to the beneficiaries
New Features:

The existing system of home remittances has been revised/significantly improved
and well-trained field functionaries are posted to provide efficient and reliable
home remittance services to nonresident Pakistanis at 15 overseas branches of
the Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira,
Saudi Arabia.

      Zero Tariffs: NBP is providing home remittance services without any

      Strict monitoring of the system is done to ensure the highest possible

      Special courier services are hired for expeditious delivery of home
       remittances to the beneficiaries.


NBP now offers excellent rates of profit on all its short-term investment
accounts. Whether you are looking to invest for 3 months or 1 year, NBP‟s rates
of profit are extremely attractive, along with the security and service only NBP
can provide.
National Income Daily Account (NIDA)

The scheme was launched in December 1995 to attract corporate customers. It
is a current account scheme and is part of the profit and loss system of accounts
in operation throughout the country.

Salient Features:

      Rs 2-million are required to open an account and there is no maximum

      Profit is paid on half yearly basis on monthly balances.

      The rates of profit vary according to the slabs of deposit. On Deposits of
       Rs.2 million to 2,000 million, the rate fluctuates from 1.4 to 1.75

      It is a checking account and there is no limit of withdrawals.

Rates on NIDA

      From Rs 2/- million to Rs 50/- the rate is 1.4%.

      From Rs50/- million but less than Rs 500/-million, the rate is 1.5%.

      From Rs 500/- million but below Rs 1000/- the rate is 1.6%.

      From Rs 1000/- and above the rate is 1.75%.


NBP provides Agricultural Finance to solidify faith, commitment and pride of
farmers who produce some of the best agricultural products in the World.

Agricultural Finance Services:

“I Feed the World” program, a new product, is introduced by NBP with the aim
to help farmers maximize the per acre production with minimum of required
input. Select farms will be made role models for other farms and farmers to
follow, thus helping farmers across Pakistan to increase production.

Agricultural Credit:

The agricultural financing strategy of NBP is aimed at three main objectives:-

      Providing reliable infrastructure for agricultural customers

      Help farmers utilize funds efficiently to further develop and achieve better

      Provide farmers an integrated package of credit with supplies of essential
       inputs, technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term):

      Production and development

      Watercourse improvement

      Wells

      Farm power

      Development loans for tea plantation

      Fencing

      Solar energy
Farm Credit:

NBP also provides the following subsidized with ranges of 3 months to 1 year on
a renewal basis.

      Operating loans

      Land improvement loans

      Equipment loans for purchase of tractors, farm implements or any other

   Livestock loans for the purchase, care, and feeding of livestock.

Production Loans:

Production loans are meant for basic inputs of the farm and are short term in
nature. Seeds, fertilizers, sprayers, etc are all covered under this scheme.

Working Capital and Short Term Loans:

NBP specializes in providing Project Finance – Export Refinance to exporters –
Pre-shipment and Post-shipment financing to exporters – Running finance –
Cash Finance – Small Finance – Discounting & Bills Purchased – Export Bills
Purchased / Pre-shipment / Post Shipment Agricultural Production Loans

Medium term loans and Capital Expenditure Financing:

NBP provides financing for its clients‟ capital expenditure and other long-term
investment needs.      By sharing the risk associated with such long-term
investments, NBP expedites clients‟ attempt to upgrade and expand their
operation thereby making possible the fulfillment of our clients‟ vision. This type
of long term financing proves the bank‟s belief in its client's capabilities, and its
commitment to the country.

Loan Structuring and Syndication:

National Bank‟s leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. Because we
understand our syndicate partners‟ asset criteria, we help borrowers meet
substantial financing needs by enabling them to reach the banks most interested
in lending to their particular industry, geographic location and structure through
syndicated debt offerings. Our syndication capabilities are complemented by our
own capital strength and by industry teams, who bring specialized knowledge to
the structure of a transaction.

    LIMIT Rs.50,000/ - To Rs.10,000,000/-

    customer's equity @ 30%

    Comfortable and secure environment for trading

    NBP financing at very easy terms requiring minimum documentation

    No security requirement from the customer except for the customer's

    Customer's equity freely available for investment.

    Equity acceptable in cash or approved share.

Cash Management Services:

With National Bank‟s Cash Management Services the customer‟s sales collection
will be channeled through vast network of NBP branched spread across the
country. This will enable the customer to manage their company‟s total financial
position right from your desktop computer. They will also be able to take
advantage of our outstanding range of payment, ejection, liquidity and investment
services. In fact, with NBP, you‟ll be provided everything, which takes to manage
your cash flow more accurately. EOBI and Pakistan railway is currently availing
NBP cash management services.

National Bank of Pakistan is at the forefront of international banking in Pakistan,
which is proven by the fact that NBP has its branches in all of the major financial
capitals of the world. Additionally, NBP have recently set up the Financial
Institution Wing, which is placed under the Risk Management Group. The role of
the Financial Institution Wing is:

      To effectively manage NBP‟s exposure to foreign and domestic

      Manage     the   monetary     aspect    of   NBP‟s   relationship   with   the
       correspondents to support trade, treasury and other key business areas,
       thereby contributing to the bank‟s profitability

      Generation of incremental trade-finance business and revenues

NBP offers:

      The lowest rates on exports and other international banking products

      Access to different local commercial banks in international banking

NBP offer following services for low level financing.

Cash and Gold Finance.

   Cash and Gold finance means that loan is given against the gold. The gold is
mortgaged with the bank and loan is taken. It is the area of consumer finance.
And borrower can take loan for common use.

        acility of Rs. 20, 000/-against each 10 gms of net weight of Gold

        No maximum limit of cash

        Repayment after one year

        Roll over facility

        No penalty for each repayment

Advance salary loan:

This loan is given to those people who are govt servants. They can get a loan up


        Easy installments of 1 to 60 months at your choice

        Quick processing and fastest disbursement

        The product is for permanent employees of Government, Semi
          Government and Autonomous bodies receiving salaries through NBP
Mera Apna Karobar

   Minimum down payment, 10% of asset price (5% for PCO & Telecaster)

   Tenure 1 to 5 years (for PCO 2 years)

   Grace period 3 months

   Maximum loan amount Rs. 200,000/-

   Age 18-45 years

   The customer will pay markup @ 6% p.a., rest will be borne by GOP

   Life & disability insurance paid by Government of Pakistan.


   NBP Karobar Utility Store

   NBP Karobar Mobile Utility Store

   NBP Karobar Mobile General Store

   NBP Karobar Transport

   NBP Karobar PCO

   NBP Karobar Tele-Centre
PROTECTION SHIELD Personal Accident Insurance

   No documentation

   No medical required

   Coverage includes death due to:

   Natural Calamities e.g. Earthquake, Flood, Cyclone etc.

   Accident

   Riots

   Civil Commotion

   Strikes

   Acts of Terrorism

SWOT analysis is an acronym that stands for strengths, weakness, opportunities,
and threats SWOT analysis is careful evaluation of an organization‟s internal
strengths and weakness as well as its environment opportunities and threats.

“SWOT analysis is a situational which includes strengths, weaknesses,
opportunities and threats that affect organizational performance.”

“The overall evaluation of a company strengths, weaknesses, opportunities and
threats is called SWOT analysis.”

In SWOT analysis the best strategies accomplish an organization‟s mission by:

1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.

3. Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using
the organization mission as a context; managers assess internal strengths
distinctive competencies and weakness and external opportunities and threats.
The goal is to then develop good strategies and exploit opportunities and
strengths neutralize threats and avoid weaknesses.


NBP is one of the oldest bank of Pakistan and first nationalized bank Hence its
customer base is strength from this plus point as customers have more
confidence in the bank. The additional value services as the privilege for the


The NBP performs additional services for its customers as well as the other bank
customer in the absence of SBP.


NBP has the relative competence in having more deposits than the other bank.
This is because of the confidence the customer have in the bank. The bank being
the privileged and oldest bank in banking sector of Pakistan enjoys this edge
over all others, lacking it.


The employers at NBP are offered reasonable monetary benefit. Normally two
bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional
benefit and competency for the bank and a source of motivation for the


The bank has another competency i.e. it has broad-basses network of branches
throughout the country also more than one branch in high productive cities. The
customers are provided services at their nearest possible place to confirm
customer satisfied.

The employees at NBP are strict followers of rule & regulation imposed by bank.
The disciplined environment at NBP bolsters its image and also enhances the
over all out put of the organization.


The employees at NBP here have a good hold on their descriptions, as they are
highly skilled Professionals with background in business administration, banking,
economics etc. These professional competencies enable the employees to
understand and perform the function and operation in better way.


The working condition in the NBP branch here is very conductive and favorable
for better output. The informal environment affects the performance of the
employees in a positive way.


The bank enjoys a good plus point when it comes to the employee manager
relationship the hearing as removing of discrepancies if any, between the
employees, and between the manager and employees.


The bank does not promote its corporate image, services, etc on a competitive
way. Hence lacks far behind in marketing effort .A need for aggressive marketing
in there in the era marketing in now becoming a part of every organization.


The strong political hold of some parties and government and their dominance is
affecting the bank in a negative way. They sometime have to provide loan under
the pressure, which leads to uneven and adjusted feeling in the bank


The promotions and bonuses etc in the bank are often powered by senior‟s
favoritism or dependupon their wills and decision. This adds to the negative
factors, which denominate the employees thus resulting in affecting their
performance negatively.


The bank falls far behind when the innovative and new schemes are considered.
It has not been involved in the tug of war between the competitors to the
accounts and strengthens the existing customer base. This stands out to be the
major incompetence and weakness of the banks.


During the rush hours, the bank is founded out to be a total flop to handle the
mob of people peaking from windows and doors. The bank has deficiency to
operate in the stages of rush hours where the people find them services
entangled in a situation of nowhere because they are not well served.


The world today has become a global village because of advancement in the
technologies, especially in communication sector. More emphasis is now given to
avail the modern technologies to better the performances. NBP can utilize the
electronic banking opportunity to ensure on line banking 24 hours a day. This
would give a competitive edge over others.


Because of the need for micro financing in the market, there are lot of
opportunities in this regard. Other banks have already initiated, now the time has
arrived when the NBP must realize it and take on step to cater an ongoing
demand and introduce products like auto finance etc.


The bank is facing threats with the emergence of new competitors especially in
terms of foreign banks. These foreign banks are equipped with heavy financial
power with     excellent and    innovative ways of promoting and performing their
services. The bank has to take initiative in this regard or will find itself far back in


The ongoing shift in power in political arena in the country effects the
performance of the bank has to forward loans to politically powerful persons
which create a sense of insecurity and demoralization in the customer as well as


The bank is currently acting upon the policy of downsizing which threaten the
environment of the bank Employees feel insecurity in doing their jobs and work,
hence affecting the over all performance of employees negatively.


There exists no regular and specific system of the removal of customer
complaints. Now a day a need for total customer satisfaction is emerging and in
their demanding consequences customer's complaints are ignored.
COMPETITIVE ANALYSIS Porter’s five forces model:

This approach is widely used for competitive analysis. It is because of the high
intensity of competition among companies there five main competitive forces.

Rivalry among competitive firms:

It is a very powerful force among the competitive forces the strategies pursued by
one firm can be successful only to extent that they provide competitive
advantages over the competitor. These competitive strategies may be lowering
prices, best quality series. The NBP offering very low charges an demand draft,
telegraphy transfer, mail transfer and give other additional services to the
customers and to the Nation. Because NBP is a “Nation‟s Bank”.

Potential entry of new competitors:

Whenever new firms ca easily enters a particular industry, the competition
increases. The gout restriction, tariffs, patents etc can stop new firm to enter into
the business as per Banking industry is concerned this market is already very
situated in Pakistan and there are banks with quality services and low charges.
So there is no threat to NBP from potential entry and NBP is also a public sector
bank because of that no other new bank not takes over it.

Potential Development of substitute products:

This is the third factor affecting the competitions. There may be some other
product can be substitute the product of that industry. For example banks offering
sawing schemes in Pakistan and these schemes are also offered by GPOs in
Pakistan so they must compete them in this field. If they offer low rates than
GPOs so people will go to deposit in GPOs. People concentration high rates so
that‟s why sawing PLS accounts are more then current accounts. The next
examples will ATM which substitute presenting cheques at counter and encash it.
The NBP is lacking in this field. It must improve in this field to compete the

Bargaining Power of Suppliers:

The bargaining power of supplier affects the intensity of competition, especially
when there are a large number of suppliers. In case of banks the suppliers are
customers they supply the money to banks. Now they must offer good services,
quality, and safety. Low charges etc to customers. In this field NBP is very good.
B/C at offers good quality services to customers. They charge low charges on
remittances. So that‟s it is a competition to other banks.

Bargaining Power of Consumers:

When customers are concentrated or large, or buy in volume, their bargaining
power represents a major force affecting intensity of competition. Now the
number customers in Pakistan for banks are very high. Banks offering variety of
products and services to their customers. NBP have a large number of customs.
Now it must offer good services and products to their customers to attract them
to come to NBP.
A simple questioner was design to evaluate the perceived value of NBP & to
have customer feedback on the services provided by NBP from a sample of 50
customers. The results are highlighted in form of charts.

        Do you think that NBP caters all your
           banking needs? (1) Yes (2) No


        What do you think about quality of
      services provided by NBP (1) Good (2)

Are you aware of core banking facility
 for the customers provided by NBP
             (1) Yes (2) No


Does NBP charge unnecessarily for
 not maintain minimum balance in
          your account
           (1) Yes (2) No


  Does NBP charge less then other
           (1) Yes (2) No

 Do you use other banks services as
            (1) Yes (2) No


Reason for using other Bank's service
   (1) Bad Counter Service of NBP
        (2) High Interest rate


What do you feel about overall service
           quality of NBP
     (1) Satisfied (2) Disdatisfied

Customer solutions provided by NBP are superior then other banks but the counter
services are usually a concern for the customer because of which they are using services
of other banks as well.

The customer base of NBP is Un-harvested and NBP has the potential to capture the
entire market by improving the internal atmosphere of the organization and training its
employee for proper counter service

Similarly NBP can offer new variety of products for individual customer who will help
NBP to reposition it self as a true commercial bank rather then a government bank.

There is a requirement of Marketing Research Department in NBP which will help it to
analyze market and help to mold it self according to Marketing concept rather then
Product concept.

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