NBP employees’ benefits increase Rs2.57bn in a year

ISLAMABAD: The National Bank of Pakistan’s employee-related benefits surged to Rs2.574 billion in one year, according to the bank’s financial statements for the period ended September 30, 2020.

As per details, the compensations (including salary and other benefits) of NBP employees increased from Rs27.779 billion in September 2019 to Rs30.353 billion in September 2020.

Sources said that the NBP management had hired a number of contractual employees on hefty salaries, which was why the expense in the ’employee benefits’ head jumped over Rs2 billion. Overall, around 3,800 employees were currently working at NBP on three-year contracts.

Meanwhile, the bank’s Inclusive Development Group (IDG) losses reached Rs5.945 billion from Rs1.6 billion in just one quarter. Sources said that the NBP president and board of directors had approved restructuring of the bank and in this regard created the IDG. This group managed loans including agricultural credit, SME financing, commercial financing and housing sector finance.

In addition, despite shifting the government business to corporate group, which handles more than 70pc of advances, the losses of this group increased from Rs4.563 billion to Rs10.332 billion in just three months.

On the other hand, international banking group profit was Rs455 million in June 2020, which dropped to Rs133 million in September 2020 despite the fact that profit earning home remittance function was added to this group.

Moreover, the bank’s operational expenses with reference to September 2019 also reflected an unusual increase of Rs3.220 billion. In September 2019, the figure stood at Rs42.415 billion while in September 2020, it wwelled to Rs45.635 billion.

During the current management’s tenure, the Bank’s penalties increased drastically from Rs124.557 million in September 2019 to Rs295.692 million in September 2020.

But the most alarming figure remained the increase in non-performing loans, which was Rs20 billion higher than the September 2019. Sources said that the main reason for this increase was the lack of monitoring of loans and seriousness shown by the head office.

5 COMMENTS

  1. Unfortunately the corporate loaning staff seems to be involved in corruption.thats why bad loans are higher

  2. Such misleading Headline. The existing NBP employees didnt get a penny in terms of increase in benefits from 2 years, They were not given Annual Increased/Increment for the year 2018. They have not been given annual increment for the year 2019 up till now despite 11th month of next year i.e has 2020 started. Unlike BOP and other banks..NBP staff was not given a penny in term of COVID relief bonus as staff was coming regularly and Bank remained open leading to several deaths of NBP employees. Such huge rise in inflation and on the other hand cold response from Banks management has created unrest in employees and Banks service level is decline day by day. Govt should take notice of this situation this President and Bod of Nbp needs to go otherwise they will convert it to something like PIA.

  3. Staff is waiting for yearly increase since last two years. Main issue is contractual employees at top level i.e. SVP and above who are hired on extremely high salaries without having requisite experience and qualifications. Would you believe that Group Chief HR is simple BA and no HR qualification. Experience is that of TCS. Similarly people from non relevant sectors have been inducted in hundreds. This is naya pakistan we were told about

  4. Lanat hy out source mulazimin ki salary kam kr k inki increase kr rahy ho sara kam bhi out source kr raha hy ap ko sharm ni atti itna zulam qabar yad ni maot yad ni kuch khuda khof kro

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