.
Growth in business.
Since 1999 upto June 30, 2001, the total deposits have increased by about 20% with an almost similar increase in gross advances. .
Reduction in administrative costs versus total income.
Banks, especially the NBP have taken steps, to reduce its administrative expenses. .
Reduction in tax rates.
The tax rates on the banks have reduced from 58% to 50% during the period.
History:.
National Bank of Pakistan (NBP) came into existence under National Bank of Pakistan Ordinance No. XIX of 1949 with its six offices in then East Pakistan. Offices in Karachi and Lahore were opened in December, 1949. Bank was allowed an authorized capital of Rs. 60 million. In December 1960 the capital was reduced to Rs. 30 million. The Bank was set up with an issued capital of Rs. 15 million of which the Government paid 25 percent. In 1959 it had 129 branches in both wings of the country as against only 17 in 1950. It opened first overseas branch in Jeddah, Saudi Arabia in 1950 followed by another branch in London in 1953 and in Baghdad in 1957. It opened a branch in New York in September, 1964. More branches were opened in UK and one in Hong Kong.
In 1995, NBP became the first bank in Pakistan with a deposit base which crossed the Rs. 2002 billion. Total deposits of the bank have since risen to Rs. 273.4 billion by end December 1998. In 1990 deposits were Rs. 87.9 billion. The deposits of the Bank continued to show steady growth throughout the decade and rose form Rs. 885 million in 1960 to Rs. 3.1 billion in 1969. The Bank's advances rose form Rs. 664 million to Rs. 2.1 billion in the corresponding decade. NBP maintained its position as Pakistan's largest bank in 2001. .
In November 2001, 10% share of NBP's shares were offered to general public and listed on all domestic Stock Exchanges. The listing offer was oversubscribed approximately six times. Privatisation Commission has launched the second offering of 5 % (18. 652,000) Government of Pakistan shares in National Bank of Pakistan (NBP) to the general public with a green shoe option of additional 5 % shares in case of over subscription.
