Swot Analysis Of Nib Bank 2s4h5f

NIB Introduction NIB bank provides services to more than 450,000 customers through a countrywide network of 179 branches all over Pakistan. It is one of the fastest growing banks in Pakistan. NIB started operations in October 2003 with a paid up capital of Rs. 1.2 bn. Operations for NDLC, IFIC’s Pakistan and Credit Agricole Indosuez Pakistan were amalgamated with their assets and liabilities in April 2004. Temasek Holdings acquired 25% shareholding in NIB in March 2005 through Bugis Investments which was enhanced to over 70% in June 2005. NIB has branches all over Pakistan.

A SWOT Analysis A SWOT analysis guides us to identify the positives and negatives inside our organization (S-W) and outside of it, in the external environment (OT). Developing a full awareness of our situation can help with both strategic planning and decision-making. The SWOT method was originally developed for business and industry, but it is equally useful in the work of community health and development, education, and even personal growth. SWOT is not the only assessment technique we can use, but is one with a long track record of effectiveness. Compare it with other tools found in the Community Tool Box to determine if this is the right approach for our situation. The strengths of this method are its simplicity and application to a variety of levels of operation. A SWOT analysis can offer helpful perspectives at any stage of an effort. We can use it to: • • • •

Explore possibilities for new efforts or solutions to problems. Make decisions about the best path for our initiative. Identifying our opportunities for success in context of threats to success can clarify directions and choices. Determine where change is possible. If we are at a juncture or turning point, an inventory of our strengths and weaknesses can reveal priorities as well as possibilities. Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed.

SWOT also offers a simple way of communicating about our initiative or program and an excellent way to organize information we've gathered from studies or surveys.

SWOT Analysis of NIB Bank 1. Internal • •

Strengths Weaknesses

2. External • •

Opportunities Threats

Internal Analysis Strengths Strength can be defined as an area where a company is best at doing something or a feature that puts a company at an advantage in comparison to its competitors. NIB Bank enjoys the following strengths. •

The Standard of service is very good and customers are satisfied with that service.

•

They have computerized system, and online banking.

•

NIB is the 7th largest bank in Pakistan with over 240 branches.

•

NIB bank’s ATM’s are linked with a number of leading local and foreign banks.

•

Automated Systems made NIB Bank to rise with the pressure of rising competition.

•

The employers at NIB are offered reasonable monetary benefit. Normally two bonuses are given Eid – ul - Fitar & Eid – ul - Azha.

•

NIB bank has well established website and is up to date about the bank.

•

Promotes high standards of borrower creditworthiness

•

Financial Sustainability

•

Facilitates high credit rating

Weaknesses A weakness is defined as an area in an organization where the organization is not as good at doing something where the organization is not as good doing something as its competitors or a thing which an organization lacks or disadvantage in comparison to its competitors. Based on the above definition NIB Bank has the following weaknesses. •

Branch area is very small with respect to hired employees.

•

When nib merges PICIC commercial and PICIC investment in it than the old employees become part of the NIB.

•

Those employees need great deal of training and development. As they are doing conventional banking and NIB’s slogan is relationship base banking.

•

Online recruitment (unable to collect a pool of candidate because net is not available everywhere in the country).

•

Increases city/utility costs of borrowing.

•

Creates regulatory problems or uncertainty

•

Creates obstacles to efficient management

•

Branch manager cannot fire any employee on his bad performance as they hired as permanent employees.

•

To enhance competition and efficiency, consolidation of small institutions into bigger units is required which can be done by focusing on the legal and regulatory framework

•

NIB Bank rely on borrowing and contributions to fund their asset growth.

•

In some regions, urban areas of Pakistan service of NIB Bank is not good as compared to other privatized banks

•

The application time is also quite lengthy

External Analysis Opportunities An opportunity can be defined as a change in external environment, which if properly exploited with the organizational strengths will result in enhanced sales, market share, or income. Using its strengths, NIB Bank can avail the following opportunities. •

Increase credit facilities to lower income and also to SME’s

•

Many areas for new branch opening.

•

In the economy of Pakistan where other banks are very carefully lending the different loan NIB giving personal loan in huge quantity. This will result in great market share in future.

•

Creativity and financial innovation.

•

Develop expertise in specialized credit evaluation of cities and utilities

•

Provide focal point for identifying and acting on obstacles to or opportunities for city and city enterprise borrowing.

•

Proper orientation of employees in all branches can help them to cope up with foreign banks.

•

Call centre services should be improved to enhance their network

•

Aggressively monitor borrowers and help resolve borrower financial problems.

•

As a Bank, NIB has business relationships covering a very large fraction of the economy in the country. These relationships make the perfect partner to drive the initial free registration of businesses.

•

Attraction of new capital by the NIB Bank.

Threats Threat can be defined as a change in external environment which if not met with proper strategies will result in loss of revenues, market share, or income. In the context of NIB Banks external environment, the following potential threats exist: •

Foreign banks operating in Pakistan are playing a significant role by incorporating new technologies and providing better quality services thus creating a threat to the local banks especially to NIB Bank which tries to develop its image in the eyes of customers.

•

Already many huge banks are doing business in the banking sector.

•

Devaluation of Pakistani currency.

•

The bank is facing threats with the emergence of new competitors especially in of foreign banks.

•

Large and Increase competition

•

Lack of Huge Deposits

•

Systemic investment risks (tariffs set by local radas; all cities rely heavily on Inter-governmental transfers)

•

Reliance on market interest rates and maturities may make loans unaffordable