A project OF Management of

NATIONAL BANK OF PAKISTAN

Submitted by: Kashif Mehmood (0 !A"I#! $0%

University Institute of Information Technology (U A A R)

Internship/ mployment Report (!"#$)

Internship "eport Bache&or of B'siness Administration Program

Name(Kashif Mehmood "eg) No)( 0 !Arid! $0 Specia&i*ation( +" Te&ephone( 0,,-!.-0,-/ 0!Mai&( 1ashipppp23ahoo)com 4ni5ersit3 Instit'te of Management Sciences 4ni5ersit3 of Arid Agric'&t're "a6a&pindi

7ompan3 Name( Nationa& Ban1 of Pa1istan Ind'stria& area Branch Is&ama8ad ($.,$% Main Te&ephone N'm8er(s%(0.$! 9.:/;9!;, Fa< N'm8er( 9.:/;$ Posta& Address( Nationa& Ban1 of Pa1istan Ind'stria& area 8ranch Is&ama8ad

S'per5isor Name( Kha&id Mahmood A88asi(Manager Operation% S'per5isor Te&ephone N'm8er(0,0:!.$/,;:; Start #ate for Internship( $0 j'&3 90$9 0nd #ate for Internship( $; a'g'st 90$9 "eport #ate( 9$ fe8 90$,

Evaluation
KAS+IF M0+MOO# completed internship at =Nationa& Ban1 of Pa1istan ind'stria& area Branch Is&ama8ad>

Internship report s'8mitted for the Fina& 05a&'ation in Partia& F'&fi&&ment of the re?'irements for the #egree of =Bachelors in Business Administration> It is certified that, the Internship report and the work contained in it conforms to all the standards set by the Institute for the evaluation of any such work.

#%

= Signat're > = A&i +aider >

!%

= Signat're > = +afi* +afee* > = Signat're > = Irfan!'&&ah M'nir >

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University Institute of Management Sciences

&

'(ARATI)*

I@ st'dent of 4ni5ersit3 of Arid Agric'&t're "a6a&pindi so&emn&3 dec&are that the 6or1 presented in this report is m3 origina& 6or1 and no portion of it has 8een s'8mitted for an3 other degree of ?'a&ification to this or an3 other 'ni5ersit3 of &earning)

ACKNOWLEDGEMENT

A&& praise is to ALLA+ ALMIA+TB@ for gi5ing 's 1no6&edge@ insight@ de5otion and strength to accomp&ish this tas1) 6e immense&3 than1f'& to a&& the teachers and friends 6ho he&ped me to comp&ete the project) I am gratef'& to the staff of NBP as 6e&&@ 6ho s'pported me &ot d'ring this project and pro5ided comprehensi5e 1no6&edge of their prod'cts and ser5ices and 8an1ing practices) Specia&&3 S3ed +ammad "a*a Na?5i@ Branch Incharge 7A#@ NBP 7i5i& Lines Branch Che&'m D S3ed M'hammad Fa1hir +assan Na?5i@ 7omp&iance Officer@ NBP 7i5i& Lines Branch Ch&e'm) Their g'ide&ines ha5e &ead 's to disp&a3 a pict're of NBPEs Management in this report) In the end I 6o'&d &i1e to than1 a&& of m3 friends and fami&3 mem8ers for their s'pport and enco'ragement)

+R ,A' Ban1ing sector pi5ota& importance in the econom3 of an3 co'ntr3 thro'gh its 5i8rant f'nctions) Moreo5er@ the practice and fami&iarit3 &earned d'ring this ten're 6o'&d a&so attest 5er3 he&pf'& and a&&e5iating in the a6aiting proficient &ife) This report is an 'pshot of m3 si< 6ee1s internship in NBP) NBP possess an imperati5e and historica& importance in the 8an1ing sector of Pa1istan) It a&6a3s remains the center of h'st&es in 8'siness acti5ities) It a&6a3s endo6s 6ith great co5enant of rea&&3 ro'nd in terms of f'nds and ser5ices at a&& epochs of its d3namism) A&tho'gh@ a derisor3 period of si< 6ee1s is not eno'gh to &earn the comp&e< operations of NBP 3et I made ind'strio's efforts to con5erse them comprehensi5e&3 in this report) Partic'&ar&3@ I ha5e rem'nerated more accents on st'd3 of disting'ishing feat'res and ser5ices of NBP) I ha5e made ma<im'm 5ent're to e&a8orate this report 6ith the materia& read@ &isted and o8ser5ed) #ear readers@ I hope 3o' 6i&& appreciate m3 report and sense that reading m3 report is not &i1e to 6aste the time in an3 respect 8eca'se of the fo'r principa& reasons as 'nder( I ha5e made $00F rea&istic attempt to pro5ide 3o' the e<act information a8o't NBP) A&& the terms ha5e 8een e<p&ained caref'&&3 in a simp&e and comprehensi5e 6a3) This report is 6ho&&3 'p to date@ e?'ipping the information a8o't c'rrent&3 pre5ai&ing f'nctioning and ser5ices of the 8an1ing s3stem of NBP)

- 'UTI.

SU//AR0

The 8an1ing s3stem in Pa1istan has 6itnesses some e5o&'tionar3 changes d'ring the recent 3ears and has made &ong!strides to6ards its goa& of 8ecoming a financia&&3 5ia8&e as 6e&& as firm arm of the econom3 6hich in t'rn 6o'&d promote not on&3 gro6th 8't a&so prosperit3 not on&3 of the 8an1ing sector 8't of the econom3 as a 6ho&e) As 5i8rant and d3namic 8an1ing sector is 5ita& for the strong and prospero's econom3) Therefore@ on rea&i*ing the inherent 6ea1ness of the financia& str'ct're that emerged after nationa&i*ation@ go5ernment of Pa1istan initiated a 8road 8ased program of reforms in the financia& sector) In this 6a3 Ao5ernmentEs commitment to 8an1ing reforms has made Pa1istanEs financia& sector stronger in the &ast fo'r to fi5e) The 8an1ing sector has sho6n remar1a8&e performance in a n'm8er of areas 6hich has he&ped in f'rther strengthening of the 6ho&e process) Ban1ing ind'str3 is present&3 facing a h3per t'r8'&ent sit'ation 6here 8an1s ha5e to operate in increasing&3 competiti5e and comp&e< &oca& and g&o8a& mar1ets) The a8i&it3 to compete in the fast paced g&o8a& en5ironment is of paramo'nt importance G s'r5i5a& of the fittest 8eing the name of the game) The competition has e5en 8ecome e5er to'gh and cha&&enging 6ith the entr3 of man3 foreign 6or&d!c&ass 8an1s and other financia& instit'tions) In this report i ha5e e<p&ained the e5o&'tion of 8an1ing sector@ the ind'str3 8ac1gro'nd 6hich &eads to different reforms) Then i ha5e e<p&ained the 8ac1gro'nd of NBP its different prod'cts and ser5ices) After doing a&& this He ha5e e<p&ained the prod'cts and ser5ices) Based on the data ta1en@ i ha5e done financia& ana&3sis@ competiti5e ana&3sis@ ratio ana&3sis@ +" ana&3sis) In the &ast I ha5e e<p&ained the different pro8&ems at NBP AO7 ind'stria& area Branch and than s'ggestion)

'1A+T R 2 #

1IST)R0 ), *3+
#% I*TR)&U'TI)* The NBP 6as esta8&ished 5ide NBP Ordinance No) III of No5em8er
th

@ $ - )

British Ao5t) de5a&'ed its c'rrenc3 in Septem8er $ - @ India de5a&'ed its r'pees 8't Pa1istan did not) It &ed to a crisis in trading 8et6een the t6o co'ntries and India ref'sed to &ift the Pa1istan C'te) To so&5e this pro8&em i)e) to e<port j'te NBP 6as esta8&ished thro'gh an Ordinance of AOP) Nationa& Ban1 of Pa1istan maintains its position as Pa1istanJs premier 8an1 determined to set higher standards of achie5ements) It is the major 8'siness partner for the Ao5ernment of Pa1istan 6ith specia& emphasis on fostering Pa1istanJs economic gro6th thro'gh aggressi5e and 8a&anced &ending po&icies@ techno&ogica&&3 oriented prod'cts and ser5ices offered thro'gh its &arge net6or1 of 8ranches &oca&&3@ internationa&&3 and representati5e offices) The Ban1 in $ .0 had one s'8sidiar3 KThe Ban1 of Baha6a&p'rE on #ecem8er-@ $ -; 83 the former Baha6a&p'r State) NBP 6as 'nderta1ing Treas'r3 Operations and Managing 7'rrenc3 7hests or S'8 7hests at .; of its offices 6here the t'rno5er of the 8'siness 'nder the head amo'nted to "s)9-/0 mi&&ion) i% ii% #eposits he&d 83 NBP constit'ted a8o't ,)$F of tota& deposits of a&& Pa1istani Ban1s in $ - @ 6hich rose to ,:F in $ .9) Aro6th in #eposits 6as accompanied 83 increase in Ban1 portfo&io in ad5ances) NBP &ent o't to Te<ti&e@ Barn@ Iron and Stee& and p&a3ed a pioneer ro&e in s'pport of agric'&t're and commerce) iii% NBP ad5ances reached "s)..-)- mi&&ion 83 #ecem8er $ . @ 6hich 6as one third of the tota& sched'&e 8an1 credit)

#%# /ISSI)* STAT / *T LTo ma1e the Ban1 comp&ete and competiti5e 6ith a&& internationa& Standard in performing@ ?'a&it3 of@ operations@ staff@ financia& strength and prod'cts and ser5ices To de5e&op a c'&t're of e<ce&&ence in e5er3 spare of acti5it3 of the 8an1 M

#%! GOALS AND OB !CT!"ES LAn organi*ationa& o8jecti5e is the intended goa& that prescri8es definite scope and s'ggests direction to the panning efforts of a n organization

#%$ GOALS AND OB !CT!"ES NB# LTo 8e the pre!eminent financia& instit'tion in Pa1istan and achie5e mar1et recognition 8oth in the ?'a&it3 and de&i5er3 of ser5ice as 6e&& as the range of prod'ct offerings)M

#%4 3)AR& ), &IR 'T)RS NBP@ Board of #irectors &ist consist the fo&&o6ing mem8ers and their designation) Table 1 *A/ A&i "a*a #r Ha?ar Masood Ifthi1har A&i Ma&i1
Sikandar Hayat Jamali A z am F a r u q u e Ibrar A. Mumtaz Mian a u s a r H a m eed

&ISI5*ATI)* 7hairman D President #irector #irector #irector #irector #irector #irector

#%6 /A*A5 / *T Management is a distinct process consisting of acti5ities of p&anning@ organi*ing@ act'ating and contro&&ing performed to determine and accomp&ish stated o8jecti5es 6ith the 'se of h'man 8eing and other reso'rces . The management has t6o t3pes) i% ii% 7entra&i*ed) #ecentra&i*ed) anagement tends to concentrate decision making at

Centralized

the top of the organization.

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!ecentralized disperses decision"making and authority throughout and further down the organizational hierarchy. NBP ha5e a centra&i*ed t3pe of management 8eca'se the top management ta1es a&& the decisions) #%7 S *I)R /A*A5 / *T ), *3+ Senior Management of NBP consists of fo&&o6ing mem8er and their respecti5e designation) Table #
Masood Kari m Shei 1h Shahi d An6ar Khan #r) Asi f A) B rohi Im am B a1hsh B a& och Oi a'& & ah Khan Aam i r S i di ?'e S0NP D Aro'p 7hi ef@ 7orporat e D In5est m ent B an1i ng Aro'p and 7hi ef Fi nanci a& Offi cer S0NP D Aro'p chi ef@ credi t m anagem ent gro'p) S0NP D Aro'p 7hi ef@ Operat i on Aro'p) S0NP D Aro'p 7hi ef@ a'di t and i nspect i on gro'p) S0NP D Aro'p 7hi ef@ 7om p& ai nce Aro'p) 0NP D Aro'p 7 hi ef@ com m erci a& and ret ai & 8an1i ng Aro'p) S0NP D Aro'p 7hi ef@ Treas'r3 Managem ent Aro'p) 0NP D secret ar3 8oard of di rect or) 0NP D Aro'p 7 hi ef@ S peci a& asset Managem ent Aro'p) 0NP D #i 5i si ona& +ead@ em p& o3ees 8enefi t s@ #i s8'rsem ent D Tr'st ees #i 5i si on 0NP D P S O t o the P resi dent S0NP D Aro'p chi ef@ h'm an reso'rce m anagem ent D admi ni st rat i on gro'p) 0NP D Aro'p 7 hi ef@ O5erse as coordi nat i on D

M'ham m ad N'srat Nohra 01& a? Ahm ad Taj am m a& h'ssai n Bo1hari Mrs) Kh'rshi d Ma?sood A& i Am im A1ht ar #r) Mi r*a A8rar B ai g Tahi r Ba?oo8

$$

m anagem ent Aro'p) An6ar Ahm ad Meenai Aam i r S at t ar Asi f +'ssai n Khan 0NP D #i 5i si ona& +ead@ Is& am i c B an1i ng #i 5i si on ,in an ci al con trol l er D #i 5i si ona& +ead@ F i nanci a& cont ro& #i 5i si on Aro'p 7 hi ef (A%@ IT Aro'p

(So'rce 666)n8p)com)p1 % #%8 *et 9or: of 3ranches: NBP ha5e 6ide range of 8ranches inside the co'ntr3 and o'tside the co'ntr3) In Pa1istan it has 9: regiona& offices@ $9:.Branches and - S'8sidiaries) In o5erseas it has 9- o5erseas 8ranches@ / other offices) #%; ,unctions of *3+ Since NBP is a commercia& 8an1@ it performs a 5ariet3 of f'nctions)Li1e other commercia& 8an1s@ NBP is engaged in financing internationa& trade) Its other major f'nctions inc&'de recei5ing deposits@ ad5ancing &oans and disco'nting of e<change) The f'nctions performed 83 NBP are(

#%<%# Accepting &eposits This f'nction is important 8eca'se 8an1s &arge&3 depend on the f'nds deposited 6ith them 83 its c'stomers) #eposits are of man3 t3pes( #%<%!'urrent deposits

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7'rrent deposits are a&so ca&&ed demand &ia8i&it3 on c'rrent deposits) NBP pa3s practica&&3 no interest on c'rrent deposits) B'sinessmen 's'a&&3 open c'rrent acco'nts) In NBP c'rrent acco'nt can 8e opened 6ith a minim'm amo'nt of "s).00P! i$ #LS savin% deposit

Profit and &oss sharing deposits (PLS% are a&so ca&&ed chec1ing acco'nts) One can deposit and dra6 mone3 easi&3) Profit on PLS is ca&c'&ated e5er3 month 8't paid after si< months) PLS acco'nt can 8e opened 6ith a minim'm amo'nt of "s).00P! ii$ #LS term deposits

Fi<ed term deposits are deposits 6ith the 8an1 for certain fi<ed period 8efore the e<pir3 of 6hich the3 cannot 8e 6ithdra6n 'n&ess gi5ing d'e notice) In this case the rates of profit 6i&& 8e different depending 'pon the time period

'hapter2 !

+R)&U'TS A*& S R.I' S

!%# /a=or product lines mar:et segmentation

$,

Ser5ices are o'tp'ts of the firm@ 6hich are in intangi8&e form) Hhich are the 8ac18ones of an3 organi*ation to earn profitQ NBP offers the fo&&o6ing ser5ices to the peop&e) !%! & /A*& &RA,TS

If 3o' are &oo1ing for a safe@ speed3 and re&ia8&e 6a3 to transfer mone3@ 3o' can no6 p'rchase NBPEs #emand #rafts at 5er3 reasona8&e rates) An3 person 6hether an acco'nt ho&der of the 8an1 or not@ can p'rchase a #emand #raft from a 8an1 8ranch) !%$ S9I,T S0ST / The SHIFT s3stem (Societ3 for Hor&d6ide Inter8an1 Financia&

Te&ecomm'nication% has 8een introd'ced for speed3 ser5ices in the areas of home remittances) The s3stem has 8'i&t!in feat'res of comp'teri*ed test 1e3s@ 6hich e&iminates the man'a& app&ication of tests that often ca'se de&a3 in the pa3ment of home remittances) The SHIFT 7enter is operationa& at Nationa& Ban1 of Pa1istan 6ith a 'ni5ersa& access n'm8er *3+>A+??A ) A&& NBP o5erseas 8ranches and o5erseas correspondents (o5er -.0% are dra6ing remittances thro'gh SHIFT) 4sing the NBP net6or1 of 8ranches@ 3o' can safe&3 and speedi&3 transfer mone3 for o'r 8'siness and persona& needs)

!%4 ( TT RS ), 'R &IT NBP is committed to offering its 8'siness c'stomers the 6idest range of options in the area of mone3 transfer) If 3o' are a commercia& enterprise then o'r Letter of 7redit ser5ice is j'st 6hat

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Bo' are &oo1ing for) Hith competiti5e rates@ sec'rit3@ and ease of transaction@ NBP Letters of 7redit are the 8est 6a3 to do 3o'r 8'siness transactions) !%6 TRA. ( R@S '1 AU S

Tra5e&erEs che?'es are negotia8&e instr'ments@ and there is no restriction on the period of 5a&idit3 of the che?'es) "'pee tra5e&erEs che?'e is a5ai&a8&e at a&& ;00 8ranches of NBP) This can 8e cashed in a&& -00 8ranches of NBP) There is no &imit on p'rchase of this che?'e) It is one of the safest 6a3s for carr3ing mone3) !%7 +A0 )R& R

NBP pro5ides another reason to transfer 3o'r mone3 'sing o'r faci&ities) NBP pa3 orders are a sec're and eas3 6a3 to mo5e 3o'r mone3 from one p&ace to another) And@ as 's'a&@ NBP charges for this ser5ice are e<treme&3 competiti5e) The charges of NBP are 5er3 &o6 a&& o5er the Pa1istan) It charges "s .0P! for NBP acco'nt ho&ders on iss'ing one pa3ment order) And charges "s $00P! for NBP non!acco'nt ho&ders on iss'ing one pa3ment order) It charges "s 9.P! for st'dents on pa3ment of fees of ed'cationa& instit'tions) If someone 6ant a d'p&icate of pa3ment order the3 charges "s $00P! for NBP acco'nt ho&ders and "s $.0P! for non!acco'nt ho&ders) !%8 /AI(TRA*S, RS

Mo5e 3o'r mone3 safe&3 and ?'ic1&3 'sing NBP Mai& Transfer ser5ice) And NBP a&so offers the most competiti5e rates in the mar1et) The3 charges "s .0P! e<change rate and "S ;.P! postage charges on iss'ing mai& transfer) !%; ,)R I5* R /ITTA*' S:

$.

To faci&itate its c'stomers in the area of +ome "emittances@ Nationa& Ban1 of Pa1istan has ta1en a n'm8er of meas'res to Increase home remittances thro'gh the 8an1ing s3stem Meet the SBP directi5esPinstr'ctions for time&3 and prompt de&i5er3 of remittances to the 8eneficiaries) !%< S1)RT T R/ I*. ST/ *TS

NBP no6 offers e<ce&&ent rates of profit on a&& its short!term in5estment acco'nts) Hhether 3o' are &oo1ing to in5est for , months or $ 3ear@ NBPEs rates of profit are e<treme&3 attracti5e@ a&ong 6ith the sec'rit3 and ser5ice on&3 NBP can pro5ide) !%#" *ational Income &aily Account (*I&A) The scheme 6as &a'nched in #ecem8er $ . to attract corporate

c'stomers) It is a c'rrent acco'nt scheme and is part of the profit and &oss s3stem of acco'nts in operation thro'gho't the co'ntr3) !%## AUIT0 I*. ST/ *TS

NBP has acce&erated its acti5ities in the stoc1 mar1et to impro5e its economic 8ase and restore in5estor confidence) The 8an1 is no6 regarded as the most acti5e and dominant p&a3er in the de5e&opment of the stoc1 mar1et)

!%#!

')// R'IA( ,I*A*'

NBP dedicated team of professiona&s tr'&3 'nderstands the needs of professiona&s@ agric'&t'rists@ &arge and sma&& 8'siness and other segments of the econom3) The3 are the c'stomerEs 8est reso'rce in ma1ing NBPEs prod'cts and ser5ices 6or1 for them)

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!%#$

TRA&

,I*A*'

)T1 R 3USI* SS ()A*S

There are t6o t3pes of trade finance) !%#$%# Agricultural 'redit: The agric'&t'ra& financing strateg3 of NBP is aimed at three main o8jecti5es(! Pro5iding re&ia8&e infrastr'ct're for agric'&t'ra& c'stomers +e&p farmers 'ti&i*e f'nds efficient&3 to f'rther de5e&op and achie5e 8etter prod'ction Pro5ide farmers an integrated pac1age of credit 6ith s'pp&ies of essentia& inp'ts@ technica& 1no6&edge@ and s'per5ision of farming) !%#$%! ')R+)RAT ,I*A*'

NBP specia&i*es in pro5iding Project Finance G 0<port "efinance to e<porters G Pre!shipment and Post!shipment financing to e<porters G "'nning finance G 7ash Finance G Sma&& Finance G #isco'nting D Bi&&s P'rchased G 0<port Bi&&s P'rchased P Pre!shipment P Post Shipment Agric'&t'ra& Prod'ction Loans NBP pro5ides financing for its c&ientsE capita& e<pendit're and other &ong!term in5estment needs) B3 sharing the ris1 associated 6ith s'ch &ong!term in5estments@ NBP e<pedites c&ientsE attempt to 'pgrade and e<pand their operation there83 ma1ing possi8&e the f'&fi&&ment of o'r c&ientsE 5ision) c&ientJs capa8i&ities@ and its commitment to the co'ntr3) !%#4 *ATI)*A( 3A*? ), +A?ISTA* ),, RS: $; This t3pe of &ong term financing pro5es the 8an1Es 8e&ief in its

 The &o6est rates on e<ports and other internationa& 8an1ing prod'cts Access to different &oca& commercia& 8an1s in internationa& 8an1ing !%#4%# 'ash and 5old ,inance% 7ash and Ao&d finance means that &oan is gi5en against the go&d) The go&d is mortgaged 6ith the 8an1 and &oan is ta1en) It is the area of cons'mer finance) And 8orro6er can ta1e &oan for common 'se) !%#4%! Advance salary loan This &oan is gi5en to those peop&e 6ho are Ao5t ser5ants) The3 can get a &oan 'p to the sa&ar3 of fifteen months)

$:

'1A+T R2 $

3USI* SS )+ RATI)*S A*& & +ART/ *TS ), *3+

#i5iding an organi*ation into different parts according to the f'nctions is ca&&ed departments) So NBP can 8e di5ided into the fo&&o6ing main departments) $%# & +ART/ *TS ), *3+ $%#%# 'AS1 & +ART/ *T 7ash department performs the fo&&o6ing f'nctions $%#%! Receipt The mone3@ 6hich either comes or goes o't from the 8an1@ its record sho'&d 8e 1ept) 7ash department performs this f'nction) The deposits of a&& c'stomers of the 8an1 are contro&&ed 83 means of &edger acco'nts) 05er3 c'stomer has its o6n &edger acco'nt and has separate &edger cards) $%#%$ +ayments It is a 8an1erEs primar3 contract to repa3 mone3 recei5ed for this c'stomerEs acco'nt 's'a&&3 83 honoring his che?'es) $%#%4 'heBues and their +ayment The Negotia8&e Instr'ments Act@ $::$ $Che%ue is a bill of e&change drawn on a specified banker and not e&pressed to be payable otherwise than on demand.

$%#%6 Types of 'heBues $%#%6(i) 3earer 'heBues Bearer che?'es are casha8&e at the co'nter of the 8an1) These can a&so 8e co&&ected thro'gh c&earing % $%#%6(ii) )rder 'heBue These t3pes of che?'es are a&so casha8&e on the co'nter 8't its ho&der m'st satisf3 the 8an1er that he is the proper man to co&&ect the pa3ment of the che?'e and he has to sho6 his identification) It can a&so 8e co&&ected thro'gh c&earing) $%#%6(iii) 'rossed 'heBue These che?'es are not pa3a8&e in cash at the co'nters of a 8an1er) It can on&3 8e credited to the pa3eeEs acco'nt) If there are t6o persons ha5ing acco'nts at the same 8an1@ one of the acco'nt ho&der iss'es a cross!che?'e in fa5o'r of the other acco'nt ho&der) Then the che?'e 6i&& 8e credited to the acco'nt of the person to 6hom the che?'e 6as iss'ed and de8ited from the acco'nt of the person 6ho has act'a&&3 iss'ed the che?'e) $%#%7 +ayment of 'heBues It is a 8an1erEs primar3 contract to repa3 mone3 recei5ed for his c'stomerEs acco'nt 's'a&&3 83 hono'ring his che?'es) It is a contract'a& o8&igation of a 8an1er to honor his c'stomerEs che?'es if the fo&&o6ing essentia&s are f'&fi&&ed) a% 7he?'es sho'&d 8e in a proper form(

90

8% c% d% e% f% g%

7he?'e sho'&d not 8e crossed( 7he?'e sho'&d 8e dra6n on the partic'&ar 8an1( 7he?'e sho'&d not m'ti&ated( F'nds m'st 8e s'fficient and a5ai&a8&e( The 7he?'e sho'&d not 8e postdated or sta&e( 7he?'e sho'&d 8e presented d'ring 8an1ing ho'rs

$%! '( ARA*'

& +ART/ *T

A c&earingho'se is an association of commercia& 8an1s set 'p in gi5en &oca&it3 for the p'rpose of interchange and sett&ement of credit c&aims) The f'nction of c&earingho'se is performed 83 the centra& 8an1 of a co'ntr3 83 tradition or 83 &a6) In Pa1istan@ the c&earing s3stem is operated 83 the SBP) If SBP has no office at a p&ace@ then NBP@ as a representati5e of SBP act as a c&earingho'se) In practice the person recei5ing a 7he?'e as rare&3 a depositor of the che?'e at the same 8an1 as the dra6er) +e deposits the che?'e 6ith his 8an1 other than of pa3er for the co&&ection of the amo'nt) No6 the 8an1 in 6hich the che?'e has 8een deposited 8ecomes a creditor of the dra6erEs 8an1) The depositor 8an1 6i&& pa3 his amo'nt of the che?'e 83 transferring it from cash reser5es if there are no offsetting transactions) The 8an1s on 6hich the che?'es are dra6n 8ecome in de8t to the 8an1 in 6hich the che?'es are deposited) At the same time@ the creditorsE 8an1s recei5e &arge amo'nts of che?'es dra6n on other 8an1s gi5ing c&aims of pa3ment 83 them)

9$

The eas3@ safe and most efficient 6a3 is to offset the reciproca& c&aims against the other and recei5e on&3 the net amo'nt o6ned 83 them) This faci&it3 of net inter8an1 pa3ment is pro5ided 83 the c&earingho'se)

$%!%# in>9ord 'learing 3oo:s The 8an1 'ses this 8oo1 for the p'rpose of recording a&& the che?'es that are 8eing recei5ed 83 the 8an1 in the first c&earing) A&& detai&s of the che?'es are recorded in this 8oo1)

$%!%! )ut>9ord 'learing 3oo:: The 8an1 'ses o't6ard c&earing register for the p'rpose of recording a&& the detai&s of the che?'es that the 8an1 has de&i5ered to other 8an1s)

$%$ A&.A*' S & +ART/ *T Ad5ances department is one of the most sensiti5e and important

departments of the 8an1) The major portion of the profit is earned thro'gh this department) The jo8 of this department is to ma1e proposa&s a8o't the &oans) The 7redit Management #i5ision of +ead Office direct&3 contro&s a&& the ad5ances) As 6e 1no6n 8an1 is a profit see1ing instit'tion) It attracts s'rp&'s 8a&ances from the c'stomers at &o6 rate of interest and ma1es ad5ances at a higher rate of interest to the indi5id'a&s and 8'siness firms) 7redit e<tensions are the most important acti5it3 of a&& financia& instit'tions@ 8eca'se it is the main so'rce of earning) +o6e5er@ at the same time@ it is a 5er3 ris13 tas1 and the ris1 cannot 8e comp&ete&3 e&iminated 8't co'&d 8e minimi*ed &arge&3 6ith certain techni?'es)

99

Any individual or companyC Dho Dants loan from *3+C first of all has to undergo the filling of a prescribed formC Dhich provides the folloDing information to the ban:er% a% 8% c% d% e% 0<isting financia& position of a 8orro6er at a partic'&ar 8ranch) Acco'nts detai&s of other 8an1s (if an3%) Name D address of the 8orro6er Sec'rit3 against &oan) 0<iting financia& position of the compan3) (Ba&ance Sheet D Income Statement%) f% Signing a promissor3 note is a&so a re?'irement of &ending@ thro'gh this note 8orro6er promise that he 6i&& 8e responsi8&e to pa3 the certain amo'nt of mone3 6ith interest)

$%4 R /ITTA*'

& +ART/ *T

"emittance means a s'm of mone3 sent in pa3ment for something) This department dea&s 6ith either the transfer of mone3 from one 8an1 to other 8an1 or from one 8ranch to another 8ranch for their c'stomers) NBP offers the fo&&o6ing forms of remittances) a% 8% c% d% #emand #raft Te&egraphic Transfer Pa3 Order Mai& Transfer

A) &emand &raft

9,

#emand draft is a pop'&ar mode of transfer) The c'stomer fi&&s the app&ication form) App&ication form inc&'des the 8eneficiar3 name@ acco'nt n'm8er and a senderEs name) The c'stomer deposits the amo'nt of ## in the 8ranch) After the pa3ment the ## is prepared and gi5en to the c'stomer) NBP officia&s note the transaction in iss'ance register on the page of that 8ranch of NBP on 6hich ## is dra6n and 6i&& prepare the ad5ice to send to that 8ranch) The acco'nt of the c'stomer is credited 6hen the ## ad5ice from originating 8ranch comes to the responding 8ranch and the acco'nt is de8ited 6hen ## comes for c&earance) ## are of t6o t3pes) a% 8% )pen &&: Hhere direct pa3ment is made)

'ross &&: Hhere pa3ment is made tho'gh acco'nt)

3) +ay )rder Pa3 order is made for &oca& transfer of mone3) Pa3 order is the most con5enient@ simp&e and sec're 6a3 of transfer of mone3) NBP ta1es fi<ed commission of "s) 9. per pa3 order from the acco'nt ho&der and "s) $00 from a non!acco'nt ho&der) ') Telegraphic Transfer Te&egraphic transfer or ca8&e transfer is the ?'ic1est method of ma1ing remittances) Te&egraphic transfer is an order 83 te&egram to a 8an1 to pa3 a specified s'm of mone3 to the specified person) The c'stomer for re?'esting TT fi&&s an app&ication form) No'chers are prepared and sent 83 ordinar3 mai& to 1eep the record) TT charges are ta1en from the c'stomer) No e<cise d't3 is charged on TT) The TT charges are( Te&egramP Fa< 7harges on TT R Act'a&!minim'm "s)$9.) 9-

&) /ail Transfer Hhen the mone3 is not re?'ired immediate&3@ the remittances can a&so 8e made 83 mai& transfer (MT%) +ere the se&&ing office of the 8an1 sends instr'ctions in 6riting 83 mai& to the pa3ing 8an1 for the pa3ment of a specified amo'nt of mone3) #e8iting to the 8'3erEs acco'nt at the se&&ing office and crediting to the recipientEs acco'nt at the pa3ing 8an1 ma1e the pa3ment 'nder this transfer) NBP ta<es mai& charges from the app&icant 6here no e<cise d't3 is charged) Postage charges on mai& transfer are act'a& minim'm "s) -0P! if sent 83 registered post &oca&&3 "s)-0P! if sent 83 registered post in&and on part3Es re?'est) $%6 1U/A* R S)UR' & +ART/ *T

+'man "eso'rce p&a3s a 5ita& ro&e in the s'ccess of e5er3 ser5ice organi*ation) The3 interact 8et6een man and machine) Their attit'de can 6in or &ose the c'stomer) The positi5e attit'de co'&d on&3 8e created in a cond'cti5e en5ironment@ 6hich can ma1e the staff dedicated to6ards the organi*ationa& o8jecti5es /ain ob=ectives of my study Dere to see folloDing areas

$) Hor1ing 0n5ironment of NBP

9) +" #epartment of NBP % ,unctions of 1R &epartment % /AE)R ,U*'TI)*S Fo&&o6ing are the f'nctions of +" Management and Administration department@ Nationa& Ban1 of Pa1istan) #% 1uman Resource +lanning +'man "eso'rce P&anning is cond'cted 83 the +" department) The3 assess the e<isting n'm8er and nat're of staff and then p&ace P post them at need3 8ranches according to the re?'irement of that 8ranch) For e<amp&e@ if the &oad on cash co'nter is increasing@ one ne6 cashier 6i&& 8e posted at the Branch) 9.

!% Recruitment of Staff Another important f'nction of +" department is recr'itment of staff as per a5ai&a8i&it3 of 5acancies) At NBP@ recr'itment of permanent staff is centra&i*ed and a&& recr'itments are made 83 their +ead Officer Karachi) +o6e5er@ in near past &imited a'thorit3 has 8een gi5en to regiona& offices to hire the ser5ices of o'tso'rced staff i)e staff pro5ided 83 the emp&o3ment companies) This t3pe of recr'itment is 8eing made in fo&&o6ing areas( a)Sec'rit3 A'ards 8)Canitoria& Ser5ices c)Sa&e D Mar1eting staff for retai& prod'cts) $% Transfer of mployee The regiona& office contro&s fift3 fi5e (..% 8ranches) A&& transfer and posting of emp&o3ees among these 8ranches is made 83 +" department 1eeping in 5ie6 the staff re?'irement at different 8ranches) 4% Eob Rotation F'nction of Co8 rotation is a&so performed 83 regiona& office) Norma&&3 6hen an emp&o3ee comp&etes three 3ears at a partic'&ar seat@ he rotates to another seat) This rotation is 5er3 important for interna& contro&@ to pre5ent fra'd and forger3 and to enhance the emp&o3eeEs s1i&&s for different d'ties) 6% 1uman Resource &evelopment F Training +)" #epartment ana&3*es the da3 to da3 re?'irement of SBP reg'&ation for different Ban1ing acti5ities@ and p&ans for training and de5e&opment of staff )This training ma3 a&so 8e 8ased 'pon introd'ction of ne6 Ban1ing prod'ces and competition 6ith ri5a& Ban1s) 7% +erformance Appraisal +)" #epartment a&so performs the f'nction of performance appraisa& of emp&o3ees on 3ear&3 8asis )At the c&ose of e5er3 3ear ann'a& confidentia& report (A7"% of each and e5er3 emp&o3ee is 6ritten 83 +" department) This A7" contains s'8jecti5e and o8jecti5e e5a&'ation as 6e&& as persona& traits of an emp&o3ee) 8% +romotion of employees NBP +" department performs the f'nction of promotion) Norma&&3 NBP promotes its emp&o3ees after e5er3 three 3o'rs on the 8asis of their past performance@ a5ai&a8i&it3 of 5acancies in each gradePcadre and ?'ota appro5ed 83 the Ministr3 of Finance@ for each gradePcadre) ;% (ay )ff

9/

La3 off f'nction is a&so performed 83 +" department) NBP is a go5t) o6ned organi*ation and its emp&o3ees retire at the attainment of age of /0 3ears) +o6e5er@ in $ : and 9009 the NBP anno'nced the Ao&den +and Sha1eschemes and a&most .000 and ,.00 emp&o3ees separated from Ban1 ser5ices in these respecti5e 3ears) <% 1ealth F Safety + " department arranges for medica& faci&ities to its emp&o3ees) There are se5era& hospita&s on Ban1s pane& and emp&o3ees can a5ai& medica& faci&ities from these hospita&s) +ospita&s 8i&&s are 8eing paid 83 +" department after proper 5erification) NBP e<tend medica& faci&it3 to emp&o3ees@ their spo'se (6ife% and chi&dren as 6e&& as parents of the emp&o3ee) Brother or sister or an3 other re&ation is not entit&ed for this medica& faci&it3) #"% &isciplinary 'ases +" department dea&s 6ith a&& discip&inar3 cases of emp&o3ees) These discip&inar3 cases inc&'de( ! a) afraid D Forger3 8) 4na'thori*ed &ea5es c) Ins'8ordination d) Miscond'ct of finances e) Nio&ation of proced're D po&ic3 ##% Retirement 3enefits +" department a&so manages pensions and gro'p &ife ins'rance) Pension is a&&o6ed to a&& emp&o3ees after retirement and 6hen the emp&o3ee dies and his 6ido6 can a5ai& this faci&it3 ti&& death) 05en if the 6ido6 dies@ the and da'ghterPson of emp&o3ee can a5ai& pension ti&& shePhe attain the age of majorit3 i)e) $:3ears or shePhe married@ 6hiche5er is happened ear&ier) #!% +ersonnel Information System +" department is responsi8&e to 1eep and maintain comp&ete data of 0ach and e5er3 emp&o3ees this data inc&'des his persona& data as 6e&& as professiona& data and 8eing 'sed to p&ace right person for the right jo8) #$% Bual mployment 'hance NBP pro5ides e?'a& emp&o3ment chance to men D 6omen) +" department is responsi8&e to imp&ement this po&ic3@ too) #4% Salary F (oan Administration +" department performs the f'nction of dis8'rsement of Sa&ar3 and administration of Staff Loans) Sa&ar3 is 8eing dis8'rsed in &ast 6ee1 of the month) NBP a&&o6s ho'se 8'i&ding &oan@ Motor car &oan and comp'ter &oan toits emp&o3ees) Period of ho'se 8'i&ding &oan is 90 3ears@ 7ar &oan

9;

is $0 3ears and comp'ter &oan is . 3ears) Mar1 'p on +BL is ,F and carPcomp'ter&oanis-F) +" department pa3s sa&aries to emp&o3ees after ded'ction of month&3 insta&&ments of &oans@ a&read3 a5ai&ed 83 them)

$%7% & +)SIT & +ART/ *T It contro&s the fo&&o6ing acti5ities( $%7%# Account opening The opening of an acco'nt is the esta8&ishment of 8an1er c'stomer re&ationship) Before a 8an1er opens a ne6 acco'nt@ the 8an1er sho'&d determine the prospecti5e c'stomerEs integrit3@ respecta8i&it3@ occ'pation and the nat're of 8'siness 83 the introd'ctor3 references gi5en at the time of acco'nt opening) Pre&iminar3 in5estigation is necessar3 8eca'se of the fo&&o6ing reasons) i) ii) iii) i5) A5oiding fra'ds Safe g'ard against 'nintended o5er draft) Neg&igence) In?'iries a8o't c&ients)

There are certain forma&ities@ 6hich are to 8e o8ser5ed for opening an acco'nt 6ith a 8an1) Forma& App&ication Introd'ction Specimen Signat're

9:

 Minim'm Initia& #eposit Operating the Acco'nt

$%7%!

Types of Accounts

Fo&&o6ing are the main t3pes of acco'nts $% 9% ,% -% .% /% Indi5id'a& Acco'nt Coint Acco'nt Basic Ban1ing Acco'nts Profit s'pport Acco'nts Pensioner Acco'nts Acco'nts of Specia& T3pes Partnership acco'nt Coint stoc1 compan3 acco'nt Acco'nts of c&'8s@ societies and associations Agents acco'nt Tr'st acco'nt 0<ec'tors and administrators acco'nts Pa1 r'pee non!resident acco'nts Foreign c'rrenc3 acco'nts

$%7%$ Issuing of cheBue boo:: This department iss'e che?'e 8oo1s to acco'nt ho&ders) "e?'irements for iss'ing che?'e 8oo1 a% The acco'nt ho&der m'st sign the re?'isition s&ip 8% 0ntr3 sho'&d 8e made in the che?'e 8oo1!iss'ing 8oo1 c% Three r'pees per che?'e sho'&d 8e reco5ered from aPc ho&der if not then de8it hisPher acco'nt) $%7%4 'urrent account These are pa3a8&e to the c'stomer 6hene5er the3 are demanded) Hhen a 8an1er accepts a demand deposit@ he inc'rs the o8&igation of pa3ing a&& che?'es etc) dra6n against him to the e<tent of the 8a&ance in the acco'nt) Beca'se of their nat're@ these deposits are treated as c'rrent &ia8i&ities 83 the 8an1s) $%7%6 Saving account Sa5ings #eposits acco'nt can 8e opened 6ith 5er3 sma&& amo'nt of mone3@ and the depositor is iss'ed a che?'e 8oo1 for 6ithdra6a&s) Profit is paid at a f&e<i8&e rate ca&c'&ated on si<!month 8asis 'nder the Interest!Free Ban1ing S3stem) There is no restriction on the 6ithdra6a&s from the deposit acco'nts 8't the amo'nt of mone3 6ithdra6n is de&eted from the amo'nt to 8e ta1en for ca&c'&ation of prod'cts for assessment of)@ profit to 8e paid to the acco'nt ho&der) $%7%7 'heBue cancellation: This department can cance& a che?'e on the 8asis ofS a% Post dated che?'e

,0

8% Sta&e che?'e c% Harn o't che?'e d% Hrong sign etc

,$

'1A+T R 2 4

')/+A*0 A*A(0SIS
4%# S9)T A*A(0SIS To carr3o't the SHOT and Financia& Ana&3sis of NBP thro'gh the he&p of ca&c'&ating necessar3 ratios in this section) SHOT ana&3sis is an acron3m that stands for strengths@ 6ea1ness@ opport'nities@ and threats SHOT ana&3sis is caref'& e5a&'ation of an organi*ationEs interna& strengths and 6ea1ness as 6e&& as its en5ironment opport'nities and threats) $'()T analysis is a situational which includes strengths, weaknesses, opportunities and threats that affect organizational performance. $The overall evaluation of a company strengths, weaknesses, opportunities and threats is called '()T analysis. In SHOT ana&3sis the 8est strategies accomp&ish an organi*ationEs mission 83( a% 8% c% 0<p&oiting an organi*ations opport'nities and strength) Ne'tra&i*ing it threats) A5oiding or correcting its 6ea1ness)

SHOT ana&3sis is one of the most important steps in form'&ating strateg3 'sing the organi*ation mission as a conte<tS managers assess interna& strengths distincti5e competencies and 6ea1ness and e<terna& opport'nities and threats) The goa& is to then de5e&op good strategies and

,9

e<p&oit

opport'nities

and

strengths

ne'tra&i*e

threats

and

a5oid

6ea1nesses)

4%#%# STR *5T1 (i) )(& ST I*STITUTI)*: NBP is one of the o&dest 8an1 of Pa1istan and first nationa&i*ed 8an1 +ence its c'stomer 8ase is strength from this p&'s point as c'stomers ha5e more confidence in the 8an1) The additiona& 5a&'e ser5ices as the pri5i&ege for the 8an1) (ii) A(T R*AT &UTI S I* S3+ A3S *' The NBP performs additiona& ser5ices for its c'stomers as 6e&& as the other 8an1 c'stomer in the a8sence of SBP) (iii) /)R & +)SITS T1A* )T1 R 3A*?S

NBP has the re&ati5e competence in ha5ing more deposits than the other 8an1) This is 8eca'se of the confidence the c'stomer ha5e in the 8an1) The 8an1 8eing the pri5i&eged and o&dest 8an1 in 8an1ing sector of Pa1istan enjo3s this edge o5er a&& others@ &ac1ing it) (iv) /+()0 3 * ,ITS

The emp&o3ers at NBP are offered reasona8&e monetar3 8enefit) Norma&&3 t6o 8on'ses are gi5en 0id!4&!Fitar D 0id!4&!A*ha) This ser5es as an additiona& 8enefit and competenc3 for the 8an1 and a so'rce of moti5ation for the emp&o3ees) (v) 3R)A& * T9)R?

,,

The 8an1 has another competenc3 i)e) it has 8road!8asses net6or1 of 8ranches thro'gho't the co'ntr3 a&so more than one 8ranch in high prod'cti5e cities) The c'stomers are pro5ided ser5ices at their nearest possi8&e p&ace to confirm c'stomer satisfied) (vi) STRI'T(0 ,)(()9 & RU( S F R 5U(ATI)* ( The emp&o3ees at NBP are strict fo&&o6ers of r'&e D reg'&ation imposed 83 8an1) The discip&ined en5ironment at NBP 8o&sters its image and a&so enhances the o5er a&& o't p't of the organi*ation) (vii) +R), SSI)*A( ')/+ T *' The emp&o3ees at NBP here ha5e a good ho&d on their descriptions@ as the3 are high&3 s1i&&ed Professiona&s 6ith 8ac1gro'nd in 8'siness administration@ 8an1ing@ economics etc) These professiona& competencies ena8&e the emp&o3ees to 'nderstand and perform the f'nction and operation in 8etter 6a3) (viii) 1 A(T10 *.IR)/*/ *T The 6or1ing condition in the for NBP 8etter 8ranch o'tp't) here The is 5er3

cond'cti5e

and

fa5ora8&e

informa&

en5ironment affects the performance of the emp&o3ees in a positi5e 6a3) (iG)R (ATI)* /+()0 S 3 T9 * STA,, A*& )T1 R

The 8an1 enjo3s a good p&'s point 6hen it comes to the emp&o3ee manager re&ationship the hearing as remo5ing of discrepancies if an3@ 8et6een the emp&o3ees@ and 8et6een the manager and emp&o3ees)

,-

(G) *3+ A&.A*'

SA(AR0

The prod'ct of the 3ear 900:@900 ) the prod'ct 6as de5e&oped 83 NBP 7redit Aro'p@ their 8asic target is sa&aried Ao5t 0mp&o3ees) This has increased NBPEs 7redit portfo&io 6ith a major 8oost) Hith minim'm defa'&t ratio@ its 8een the s'ccess stor3 of NBP) Sti&& its a good prod'ct than their competitors persona& &oans) The interest rate charged to this &oan is SBP #isco'nt "ate T .F) (Gi) *) panelty on (ate +ayment or (oans NBP is one of those 8an1s@ 6ho donot impose an3 pane&t3 to their c'stomers regarding &ate pa3ment of insta&&ments or mar1'p and ear&3 sett&ement of &aons or 8a&&oon pa3ments in case of credits) In case a c'stomer 6ants to ma1e 8a&&oon pa3ments 6i&& not 8 charged to an3 pane&t3 in an3 ad5ances case of NBP) ItEs a strength of NBP against its competitors) (Gii) *3+ +remium Aaamdani This is the on&3 prod'ct of an3 commercia& 8an1 in the co'ntr3 6hich is competing 6ith the NATIONAL SANINAS 70NT0"Es prod'cts) NBP is offering rates to the c'stomers 6ho deposits mone3 in m'&tip&es of "s .0@000P! 6ith them ti&& fi5e 3ears) At first 3ear ;).F At second 3ear :).F At third 3ear ).F At fo'rth 3ear $0).F arly Settlement of

,.

At fifth 3ear $$).F

,/

4%! 9 A?* SS S a) (A'? ), /AR? TI*5 ,,)RT:

The 8an1 does not promote its corporate image@ ser5ices etc on a competiti5e 6a3) +ence &ac1s far 8ehind in mar1eting effort )A need for aggressi5e mar1eting in there in the era mar1eting in no6 8ecoming a part of e5er3 organi*ation) b) *3+ U*& R +)(ITI'A( +R SSUR The strong po&itica& ho&d of some parties and go5ernment and their dominance is affecting the 8an1 in a negati5e 6a3) The3 sometime ha5e to pro5ide &oan 'nder the press're@ 6hich &eads to 'ne5en and adj'sted fee&ing in the 8an1 emp&o3ees)-),), c) ,A.)RITIS/ A*& * +)TIS The promotions and 8on'ses etc in the 8an1 are often po6ered 83 seniorEs fa5oritism or depend 'pon their 6i&&s and decision) This adds to the th's negati5e factors@ in 6hich denominate the emp&o3ees negati5e&3) d) (A'? ), ,I*A'IA( +R)&U'T The 8an1 fa&&s far 8ehind 6hen the inno5ati5e and ne6 schemes are consider) It has not 8een in5o&5ed in the t'g of 6ar 8et6een the competitors to the acco'nts and strengthens the e<isting c'stomer 8ase) This stands o't to 8e the major incompetence and 6ea1ness of the 8an1s) res'&ting affecting their performance

,;

e) I* ,,I'I *T ')U*T R 1)URS

S R.I' S

I*

T1

RUS1

#'ring the r'sh ho'rs@ the 8an1 is fo'nded o't to 8e a tota& f&op to hand&e the mo8 of peop&e pea1ing from 6indo6s and doors) The 8an1 has deficienc3 to operate in the stages of r'sh ho'rs 6here the peop&e find them ser5ices entang&ed in a sit'ation of no6here 8eca'se the3 are not 6e&& ser5ed) f) (A'? ), ')/+UT RIH & * T9)R? The 8an1 &ac1 the strength of 8eing po6ered 83 the net6or1 of comp'ters@ 6hich ha5e sa5ed time@ energ3 and 6o'&d ha5e &essened the menta& stress@ the emp&o3ees ha5e c'rrent&3) This 6o'&d add to the strength if it 6ere po6ered 83 net6or1 of comp'ters) g) (A'? ), /)& R* AUI+/ *T

The 8an1 &ac1s the modern 0?'ipment that is note co'nting machine comp'ters) 05en if there is an3 e?'ipment the3 &ac1 to fa&& in the criteria of 8eing rearmed as 'pdate and 'pgraded) h) U* . * 9)R? &ISTI3UTI)*% The 6or1&oad in NBP is not e5en&3 distri8'ted and the 6or1&oad tends to 8e more on some emp&o3ees 6hi&e others a8scond a6a3 from their responsi8i&ities@ 6hich ser5er as a demoni*ation factor for emp&o3ees performing a8o5e a5erage 6or1) i) )(& employee aDareness

,:

7omp'ter a6areness to o&d Staff of NBP is a 6ea1ness) The3 sho'&d de5e&op emp&o3ee de5e&opment D training programme to effecti5e&3 'pdate their emp&o3ees regarding comp'ter app&ications D 'pcoming 7O"0 BANKINA SOFTHA"0 of 8an1)

4%$

)++)RTU*ITI S a) ( 'TR)*I' 3A*?I*5 The 6or&d toda3 has 8ecome a g&o8a& 5i&&age 8eca'se of ad5ancement in the techno&ogies@ especia&&3 in comm'nication sector) More emphasis is no6 gi5en to a5ai& the modern techno&ogies to 8etter the performances) NBP can 'ti&i*e the e&ectronic 8an1ing opport'nit3 to ens're on &ine 8an1ing 9ho'rs a da3) This 6o'&d gi5e a competiti5e edge o5er others) b) /I'R) ,I*A*'I*5 Beca'se of the need for micro financing in the mar1et@ there are &ot of opport'nities in this regard) Other 8an1s ha5e a&read3 initiated@ no6 the time has arri5ed 6hen the NBP m'st rea&i*e it and ta1e on step to cater an ongoing demand) c) 'AR ,I*A*'I*5 This is the major area 6here NBP has not competed 6ith pri5ate 8an1s) As per rep'te of NBP the3 m'st enter in persona& D car financing prod'cts) d) ')R 3A*?I*5 S0ST /

Imp&ementation of the 7O"0 BANKINA SBST0M is sti&& an opport'nit3@ as ti&& no6 none of the 8an1s operating in Pa1istan

is 'sing this most 'pdated D famo's 8an1ing app&ication) It 6i&& &ead NBP to smooth sai&ing en5ironment as a &eading 8an1 in techno&og3 as 6e&& as competing 8et6een other 8an1s) This 6i&& 'pgrade NBP from paper D &edger era to the smooth D sophisticated comp'ter app&ication)

4%4

T1R ATS a) / R5 *' ), * 9 ')/+ TIT)RS

The 8an1 is facing threats 6ith the emergence of ne6 competitor especia&&3 in terms of foreign 8an1s) These foreign 8an1s are e?'ipped 6ith hea53 financia& po6er 6ith e<ce&&ent and inno5ati5e 6a3s of promoting and performing their ser5ices) The 8an1 has to ta1e initiati5e in this regard or 6i&& find itse&f far 8ac1 in competition) b) +)(ITI'A( +R SSUR 30 ( 'T & 5). R*/ *T

The ongoing shift in po6er in po&itica& arena in the co'ntr3 effects the performance of the 8an1 has to for6ard &oans to po&itica&&3 po6erf'& persons 6hich create a sense of insec'rit3 and demora&i*ation in the c'stomer as 6e&& as emp&o3ees) c) &)9*SIHI*5 The 8an1 is c'rrent&3 acting 'pon the po&ic3 of do6nsi*ing 6hich threaten the en5ironment of the 8an1 0mp&o3ees fee& insec'rit3 in doing their jo8s and 6or1@ hence affecting the o5er a&& performance of emp&o3ees negati5e&3)

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d) 'UST)/ RS ')/+(AI*TS There e<ists no reg'&ar and specific s3stem of the remo5a& of c'stomer comp&aints) No6 a da3 a need for tota& c'stomer satisfaction is emerging and in their demanding conse?'ences c'stomerJs comp&aints are ignored)

'1A+T R 2 6

A*0(ASIS
After proper ana&3sis of the organi*ation I di5ided it into in fo'r parts) This ana&3sis is main&3 8ased on practica& e<perience of NBP Staff@ ana&3sis is as 'nder( ! Pro8&ems at the 8ranch) F'nction ana&3sis) Administrati5e ana&3sis) Persona& managementEs ana&3sis) 6%# +R)3( /S AT T1 3RA*'1

7'stomer Satisfaction Poor record management and fi&ing s3stem 4ne?'a& distri8'tion of 6or1 Mar1eting 5isits

-$

6%! ,U*'TI)*A( A*A(0SIS Forma& Organi*ation #ifference 8et6een theor3 and practice Ban1 d't3 to maintain secrec3) 0<cessi5e paper 6or1 More acco'nts fe6er deposits) #e&egation of a'thorit3

6%$ A&/I*ISTRATI.

A*A(0SIS

Co8 ana&3sis is not effecti5e 7are&essness in opening of acco'nt Lac1 of specia&i*ed training Lo6 Profit "ates Poor jo8 rotation) #e&a3s in Loan Ad5ancement Lac1 of appreciation 6%4 + RS)*A( /A*A5 / *T A*A(0SIS Need for 8etter training program #e5e&oping Manageria& Leadership "ecr'itment po&ic3 Promotions Transfer -9

 Mar1eting at des1 Lac1 of 8'siness comm'nication

-,

'1A+T R 2 7

')*'(USI)*
I*TR)&U'TI)* NBP is an effecti5e&3 operating and profit ma1ing organi*ation and carr3ing o't its acti5ities 'nder a specified s3stem of proced're) The main reg'&ator3 8od3 is State Ban1 of Pa1istan@ 6hich pro5ides po&ic3 g'ide&ines and ens'res that the mone3 mar1et operates on so'nd professiona& 8asis 6hi&e the head office specifies the 6ho&e proced're of f'nction and operations) +ere I am gi5ing some s'ggestions@ 6hich in m3 5ie6 can add some inp't for efficienc3 and 8etter performance of NBP as an organi*ation in genera& and 7it3 8ranch in partic'&ar) The recommendations are as fo&&o6s( 7%# +rofessional training NBP staff &ac1s professiona&ism) The3 &ac1 the necessar3 training to do the jo8 efficient&3 and proper&3) A&tho'gh staff co&&eges in a&& major cities 8't the3 are not performing 6e&&) Ban1ing training) 7%! &elegation of Authority 0mp&o3ees of the 8an1 sho'&d 8e gi5en a tas1 and a'thorit3 and the3 sho'&d 8e as1ed for their responsi8i&it3) 7%$ +erformance Appraisal co'nci& of Pa1istan sho'&d a&so initiate some programs to e?'ip the staff 6ith m'ch needed professiona&

--

The manager sho'&d strict&3 monitor the performance of e5er3 staff mem8er) A&& of them sho'&d 8e a6arded according to their performance and res'&t in the shape of 8on'ses to moti5ated and incite them to 6or1 more efficient&3) 7%4 'hanges in +olicies There sho'&d not 8e an3 a8r'pt po&icies change 83 the 'pper management@ as this practice h'rts the c'stomer confidences in the 8an1) Ao5ernment sho'&d ma1e &ong!term po&icies) 7%6 Utility 3ill 'harges Ban1 gets "s) . to : to processes a 'ti&it3 8i&&@ and it is 5er3 tire@ to'gh and hard jo8 despite this 6or1ing res'&ting in a &oss to then "s . to : per transaction) These charges sho'&d 8e increased to "S $0 per 8i&& to ena8&e the 8ranch to co5er their hand&ing costs and ma1e some profit) 7%7 (in: Dith the 1ead Auarter $/0 major 8ranches of NBP sho'&d esta8&ished a direct &in1 6ith the@ head ?'arter in Karachi@ thro'gh Internet or Intranet) This 6i&& ma1e the f'nctions and decision ma1ing of the management easier and con5enient) 7%8 'redit 'ard Nationa& 8an1 of Pa1istan sho'&d start its operation in credit card) These cards 6ere 5er3 he&pf'& for the ordinar3 c'stomer in genera& and the 8'siness peop&e in partic'&ar) To ma1e it mores sec're and to e&iminate the mis'se of it@ the management is re?'ired to 1eep proper sec'rit3 against the card) B't as NBP is a AONT 8an1 so most of the c'stomer gets defa'&ted and do not 6ant to repa3 the 7"0#IT 7A"#S -.

amo'nts) 0ffecti5e in5o&5ement of 7o&&ection officers for the repa3ment of credited amo'nt rather than treating and pro5isioning them as NPL)

7%; 'ash ,inancing In this mode of financing the amo'nt of credit not 'ti&i*ed 83 the 8orro6er is remained ta<!free) It is recommended that a sma&& amo'nt of interest sho'&d 8e charge on this amo'nt as 6e&& 8eca'se the 8an1 gas 1ept!aside the amo'nt for that 8orro6er and can not ad5ance it an36here) 7%< &ecreasing Administrative Gpenses

Ban1 sho'&d their administrati5e e<penses) This 6as "s : 8i&&ion in the 3ear 900 ) That can 8e done 83 &3ing off the s'rp&'s poo& of emp&o3ee 6ith go&den handsha1es scheme) The 8ranches that are not m'ch 'sed co'&d a&so 8e c&osed) 0mp&o3ee can a&so 8e ho6 to contro& the 8an1 e<penses) That 6i&& gi5e positi5e res'&ts in the f't're) 7%#" *eeds to be ,leGible in credit +olicy As mentioned ear&ier@ NBP is 5er3 conser5ati5e in ad5ances and &oans po&ic3) It red'ces the in5estment opport'nities) A&so &oans sho'&d 8e gi5en to the sma&& 8'sinessmen and the agric'&t're sector at the &o6 mar1'p rate) It sho'&d adopt f&e<i8&e credit po&ic3 6hi&e gi5ing credit to the agric'&t're sector)

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Not on&3 it 6i&& 8e economica& 8't 6i&& a&so red'ce the e<tra 8'rden of 6or1 of the 8an1) It 6i&& a&so he&p in red'cing the 'se of e<cessi5e paper 6or1)

7%## Improper &istribution of 9or: Proper distri8'tion Proper 6or1 &eads to of s'ccess 6or1 in e5er3 the

organi*ation)

distri8'tion

pre5ents

emp&o3ee from o5er and 'nder 6or1 sit'ation) So for a smooth r'nning of an organi*ation proper distri8'tion of 6or1 is the hint to 8e fo&&o6ed) #'ring m3 internship I o8ser5ed that there 6as no proper distri8'tion of 6or1 in the 8an1) I sa6 that some of the emp&o3ee 6or1ed &i1e ants other sat id&e starting here and there) So this created a &ot of o5er 6or1 sit'ation for 6hi&e re&a<ation for other) 7%#! Inter &epartmental Transfer I 6atched d'ring m3 internship that@ there is n'm8er of emp&o3ee 6ho ha5e 6or1ed on one seat for man3 a 3ear) It can ha5e negati5e effects moti5ation of emp&o3ee 6ho is hard 6or1ing and inte&&igent) Ta1e the e<amp&e of ad5ances section) In ad5ance section if the emp&o3ee is transfer after si<th month or se5en month@ ho6 can he 8e a8&e to sho6 his performances and ho6 can he 8e a8&e to 1no6 the 8an1 c'stomer in a short period of time) 7%#$ 'omplaints of 'ustomer

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There

sho'&d

8e

an

information

des1

to

pro5ide

the

information and to recei5e the comp&aints of the c'stomer in the 8an1) There is no comp&aint 8o< a5ai&a8&e in the 8ranch and not an3 person appointed to hear the comp&aints) 05er3 person cannot go to the manager for the comp&aint 8eca'se most of the peop&e are hesitant) So I s'ggest management to insta&& a comp&iant 8o< in the 8ranch@ and recr'it a specia& person for that g'idance of the c'stomer 6hen the3 are 'na8&e to manage some diffic'&ties in 8an1ing matters) 7%#4 )rganiIational 'ommitment It is s'ggested that emp&o3ees 6or1ing on dai&3 6ages 8asis sho'&d 8e gi5en some 8enefits@ 6hich the other emp&o3ees are getting) Their sa&aries m'st increase according to efficienc3@ performance and ser5ice) 7%#6 /anagerial (eadership In the ana&3sis@ 6e ha5e disc'ssed the diffic'&ties of the assistant in ta1ing an3 initiati5eS therefore it is recommended that the assistants sho'&d he gi5en specia& training to ma1e them read3 for the &eadership) 7%#7 1ousing and 1ouse 1old 5oods loans Ban1 sho'&d initiate these &oans 8eca'se most of 8an1Es c'stomers are midd&e c&ass and the3 cannot afford to 8'3 ho'se or ho'seho&d goods at once 83 their o6n)

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7%#8 S)/

/)R

Solutions / Improvements suggested

After the comp&etion of m3 internship in the NBP I am a8&e to gi5e some s'ggestions for the 8etterment of the organi*ation) #'ring the internship 6e had disc'ssions 6ith different persons &i1e manager@ operationa& manager different officers emp&o3ees and c'stomers) In the &ight of these disc'ssions 6e are a8&e to gi5e some s'ggestions 6hich are gi5en 8e&o6) 4se of modern techno&og3 ) Training and #e5e&opment of 0mp&o3ees Fre?'ent 7omm'nication Promotion on the 8asis of A8i&it3

AR , R *' S NBP ann'a& report (90$0% NBP ann'a& report (90$$% NBP ann'a& report (90$9% )*(I* R S)UR' S

666)da6n)com)p1 666)s8p)org)p1 666)n8p)com)p1

666)on&ine68c)go5PdocsPfinancePfs)ratio

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