ost Efficiency & Performance Analysis of National Bank of Pakistan

Abstract

The main focus of the project is to analyze NATIONAL BANK OF PAKISTAN by making a detailed comparative analysis with Bank Of Punjab and United Bank Limited so that the financial position of NBP can be easily understood. National Bank of Pakistan has made radical improvements by upgrading supervisory methodology, which stands for capital adequacy, asset quality, management soundness, earning and profitability, liquidity and sensitivity to market risk. All these efforts have been made to encourage and enhance a more sound banking network and banking practices as there are forty-six commercial banks are operating in Pakistan including the foreign banks that are playing a significant role by incorporating new technologies and providing better quality services thus making competition for the domestic commercial banks even more intense. Detailed ratio analysis showed that how NBP, UBL and BOP are competing in the industry their future financial strategies and also future prospects are being highlighted in the detailed forecasted financial statements. The report is based on financial and comparative analysis by conducting a detailed comparative financial ratio analysis, comparative analysis and comparative forecasting of financial statements of NBP, UBL and BOP. A brief ROE model of NBP will further guide to assess it’s so that the insights of NBP financial position can easily be understood. NBP and UBL have great advantage due to their huge assets and diverse spread network all over the country with dedicated and trained staff, while BOP has opportunity in the sense it is equipped with latest technology and Govt own bank. Pakistan Banking industry have a tremendous opportunity for all those banks that are efficient in capital management, long term future strategy in terms of liquidity and long term investments, sound banking network, equipped with trained banking professionals and using state of the art technology in their banking operations.