NBB or The National Bank of Bahrain was established in 1957. It is first bank which was completely owned by the government of the Kingdom of Bahrain consisting of the local people.
The bank provides variety of services to the retail customers and also deals in wholesale banking. In the past few decades, the Bank has added giving commercial services to the corporate. The bank has twenty branches in Bahrain with nearly 55 ATM's fully operational.
The bank has also set up its branches in Abu Dhabi and Riyadh. The bank at present is owned 51% by the private shareholders who bought the share of bank from the financial market. The rest 49% is owned by the government owned Bahrain Mumtalakat Holding Company. The bank has nearly 572 employees in 2012 who are responsible to give the best financial service to the customers of the company whether retail or corporate.
Sustainability Report:
A sustainability report consists of an organization report on the economic, environment, social, employee's support, local and overseas communities, and safety record and government compliance. These all reports can be explained as follows.
Economic factors.
The Economic conditions of the countries was expected to improve after the economic depression in year 2010, but it remains same and the NBB found it equally challenging in maintaining its business, profit margins and attract new customers. Reason being due to financial crisis the sales of the local business dropped there by leaving no need for finance for new consignments, and even no extra money with the retail investors to keep in bank accounts. Thus the economic factors remain unchanged.
Steps were taken by the bank by giving more services to the existing customers with decreasing bank rates. This way attempt was made to maintain the existing level of customers and help the community get out of the economic crisis that the whole world was going through.
Environment.
The Internal environment of business was facing a set back due to political disturbances in the early part of the year 2012. This way the whole economy faced a economic set back. The result was that the bank had to lower the cost of funds to reduce the pricing of retail loans. New packages and campaigns for loan disbursal and investment in bank by retail customers were made. A nil limit Taabeya card was issued by the bank for flexible spending levels while providing enhanced protection.
The external environment was a lot more disturbing than internal environment. The fall of Greece, Cyprus and other European countries in debt crisis further deteriorated the external environment of the country. The bank was confined to limit its operations outside the country to save its deposits for any such debt related situation.
Still the bank was successful in getting impressive performance of the banking operations from the Abu Dhabi branch in UAE. This branch further helped the bank with the lots of finance which was kept as deposit by the people of UAE in the bank. On the other hand, the economy of Riyadh continued to develop and by investing in the key sectors of the country, the bank was able to get good returns. Thus the area of operation was expanded towards the target sectors with more chances of giving better outputs.
Thus in Abu Dhabi and Riyadh the bank observed high level of loan requirements, bank deposits and other business related demand that the bank is now planning to open more branches in these countries.
Social activities.
A number of social activities are followed by the bank. The bank disbursed nearly 2.51BD million through donations and contribution programs introduced at the state level. Till now, the bank has contributed 29.40BD million in the social activities that are helping the people either in getting food, education, financial assistance etc.
The employees of the bank also make contributions to these funds and provide their services in the people who need support of any kind. The bank employees also participate in the forums that work for improvements and exploring new opportunities for the under privileged.
The finance made available by the bank eases terms and conditions and even interest rates for the under privileged people. This way they help them in their efforts to improve their plight.
Employees support.
The NBB has been constantly working on the employee retention, training and development program and their promotions from time to time. This way the human resource is nurtured developed and then deployed to more responsibility and authority in the bank. In addition to this the executive training programs are also introduced so that the high level employees can also increase their knowledge and built and develop new skills of working in the present day competitive markets.
The IPMD or the Integrated Performance and Development system has been introduced by the bank with a view to align employee's goal and objectives with that of the bank's long term objective which is growth and development of the business.
Local and Overseas Communities.
The bank has taken various steps to give highest standard of service in fund transfer operations. Thus the locals can get money from any country and the migrants can easily send the money to their home country by easy accessible instruments of the bank. Online banking, easy to understand web portal are also helping in opening bank accounts and update the information related to the bank account by the account holders either in local or overseas.
Furthermore all the pre-requisite of the bank related norms and conditions under the international community are followed so that neither the bank nor the customers feel alienated. Thus customer satisfaction through updated service is achieved by the bank.
Safety records.
NBB has taken full steps to protect its customer's related information by installing latest techniques and software that does not disclose any information to anyone else other than the bank customer himself. Thus a unique id, password along with a proper checking system has been introduced so that the bank services are easily and safely used by the customers of the bank. Any faulty situation is tackled with quick awareness and appropriate action is taken swiftly.
Also, the bank's technology has been confirmed by the CBB requirements which include the cheque truncation and electronic clearing or CTS. The bank has also upgraded its data network and communication as per the latest MPLS technology. This technology provides high speed communication between the bank customer and the bank employees. Thus any complaint, suggestion or even general information requirements gets quick redressed.
In 2011, the bank spends 1.30BD million to the local charity that provides basic substance facilities to the local poor families and under privileged people living in the Kingdom of Bahrain.
Government compliances.
NBB has been following all the government compliances. These include the followings.
The health and safety measures are fully followed in every bank premises.
The employee pay is made on time and as per the pay structure approved by the government.
The retention or removal of the employees is made as per the pre requisite rules and regulations.
The CBB requirements are also fulfilled which tackles with the safety of the individual transactions and bank account related information.
The bank is spending part of its earnings for social activities as per compliance of the government.
Comments of Board of Directors on Sustainability report:
The board of directors on sustainability report confirms the continuance of the various projects of the bank for the following purposes.
Employee support.
Safety and health
Social activities.
Along with that the bank has been facing challenging environment of low business even after 2010. This has made the banking operations difficult. The bank has to offer various schemes so that the current customer can be retained. There is lack of finance available with the retail owners to keep as fixed deposits in bank. The business is also facing a set back, as the exports to the European countries has declined due to Euro Crisis.
Finally, all the government compliances are followed which have made their bank to acquire the safe banking standards and offer easy and safe solutions to the customers.
Financial outlook of sustainability report:
The financial outlook of the sustainability report states that the bank has been spending in millions on the projects related to the followings.
Health services of the employees.
Educational facilities to the under privileges.
Investing in social welfare schemes.
Donation and contribution in various programs as
NBB home for Aged.
Bahrain Cancer society.
Bahrain down syndrome society.
Child care home.
Bahraini disabled sport Union.
This way the bank is completely fulfilling its responsibility to help the citizens of the country with fiancé and job opportunities in the country and outside the country as well. Along with that all the safety and health measures are fully in accordance with the laws of the land. This can be seen in the following picture consisting safe work place, clean work area, and enough space for customers to move around. The other safety requirements like the lighting arrangements, security etc is available in the bank.
https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSNtC3jdkj645rlZsXBpWoI2oGETJJCyOrMKYEZlXASSADZSVh0aQ
Conclusion:
In the nutshell, the NBB or the National Bank of Bahrain has been following all the pre requisites required to give their customer with safe banking solutions. The bank fosters not only needs of the retail customers but also commercial lending is done. The government compliances are completed followed. The bank is actively participating in the donations related to the social welfare of the society.
