DEDICATION

This humble effort is dedicated to our beloved parents, whose love and
efforts can never be forgotten.
ACKNOWLEDGEMENT
We are highly grateful to almighty Allah who gave us the power to complete
this report. We are also highly thankful to our honorable teacher Sir Amin
Rajani for his support and guidance. Our Special thanks to Mrs. Hina Tariq
(Operation Manager of National Bank of Pakistan, North Karachi Branch)
for her all help and support to us. And the respected HR Manager and all
other employees of the branch for their cooperation.
CHAPTER 01

INTRODUCTION
The National Bank of Pakistan is a Commercial Bank and transacts all types
of Banking Business. The National Bank of Pakistan was established on
November 29, 1949 as a semi public commercial bank.The Bank has the
distinction of acting agent of the State Bank of Pakistan and operates
treasuries where the State Bank of Pakistan does not have any office.The
Head Office of the Bank is at Karachi. Ever since its establishment in 1949 it
has been leading
Commercial Bank of the nation, sole agent of the Government of Pakistan’s
batter
trade with countries and of State Bank of Pakistan for the Government
Treasury.It has offices at all the major financial centers of the including at
pride places likes 100 wall streets, New York and United nations Plaza. Its
International net-work includes Branches at Bahrain, Cairo, Paris, Frankfurt,
Hong Kong, London, Washington D. C of shore banking unit at export
processing zone. Karachi and representative offices functioning at Beijing
and Seoul. In Pakistan, the bank provides complete bank facilities to the
people at over 1436 Branches operating even at the far lug Northern Areas.
National Bank of Pakistan is the first bank in the country to introduce and
implement supervised Ruler Credit Programmed help small farmer to obtain
loans at his doorsteps on easy terms and conditions. It has also played a
pioneering role in introduction of profit and loss sharing System (PLS) as a
major towards Islamization of economy.In addition to the normal business
operations the bank provides special loan facilities for higher education for
studies abroad and Qarz-e-Hasna to deserving poor students of Medical and
Engineering Colleges in Pakistan. The well equipped research department to
work on the cdeveloping tredns of finance and banking, besides a very well
managed library at the Head Office. The banks carry on its business through
a wide network of branches locally and internationally. These branches
execute their function under the supervision of local Regional Offices and
regional offices are supervised by the Head Office locat
ed a magnificent building in the heart of Karachi’s center.In the
forty five years that have followed the bank has made remarkable progress
testifying to several things.It is now extending the operations of the Bank to
all branches to Banking, to commerce, to industry to trustee services as well
as to agriculture and to the need of the small or big businessman. It has
rapidly advanced from an institution with restricted power to the biggest
commercial banks in the country it also shows it soundness of the policies
that the bank has pursued in the execution its tasks.The National Bank has
lead the trial in this respect, other banks have followed it. The National Bank
has great contribution towards building wide Banking structure in Pakistan
and serving all aspects of the National life and all classes of society.

OBJECTIVES

The main objective of National Bank of Pakistan has been to include and
spread banking habits among the people mobilize their savings and thus
make and ever increasing contribution to the economic development of the
country. It has all along pursued a policy of rapid development extending, its
facilities to almost every center of economic potential in the country. Its
services have been increasing continuously and are being brought within an
easy reach of the ever-growing number of people.

To day it provides the largest network of offices in the country, 1436. Being
in Pakistan and 22 aboard. It offers remittance facilities to almost every
important center in the country to provide facilities to the traveling public
the bank has introduced its own
traveler’s cheque which are en
cashable at a branch of the bank in Pakistan.
VISION

To be recognized as a leader and a brand synonymous with trust ,highest

standards of service quality,international best practices and social
responsibility.

MISSION

NBP will aspire to the values that make NBP truly the Nation’s Bank,by:

Institutionalising a merit and performance culture.



Creating a distinctive brand identity by providing the highest standards of

services.


Maximizing stakeholders value.



Adopting the best international management practices.



Discharging our responsibility as a good corporate citizen of Pakistan and in

countries where we operate
CHAPTER 02

HISTORY OF NATIONAL BANK

OF PAKISTAN

The normal procedure of establishing a banking company under the

Companies Law was set aside and the Bank was established through the
promulgation of an Ordinance due to the crisis situation that had developed
with regard to financing of jute Trade. The Bank commenced its operations
from November 20, 1949 at six important jute centers in the then east
Pakistan and directed its resources in financing of jute cro
p. The Bank’s Karachi and Lahore offices were subsequently
opened in December 1949. State bank of Pakistan after its formation
demanded from the Indian Reserve Bank the assets against the Indian
currency retired from Pakistan territory. Government of India refused to
hand over the assets worth about five hundred million rupees. The dispute is
still unsettled and these assets are still not delivered to Pakistan. Until June
1950, the Bank was engaged exclusively on jute operation. Thereafter, it was
felt that it could expand its business to include other commodities as well.
Bank took a big stride in 1952, when it replaced the Imperial Bank of India,
as an agent of State Bank of Pakistan. With the passage of time its
functioning diversified as they take over the function of different institution
with the passage of time like in past they took over the function of Imperial
bank of India and now of NDFC (national development finance
corporation)It is working as the agent of the state bank of Pakistan and
performs its functions wherever state bank of Pakistan is not present. The
government floated its 10 % of the shares in the open market in past and the
ratio became 60: 40 and in future they trying to make it 55: 45. In 1999
national bank celebrated its golden jubilee during the last fifty years bank
has made substantial strides in the financial services industry in Pakistan.In
1999 its market share was around 22% and it remains the largest financial
institution in Pakistan.
CHAPTER 03

ORGANIZATIONAL
STRUCTURE

PRESIDENT

DIRECTORS/ SEVPS

Procincial
Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade
-
I,II,III

Clerical and non

-
clerical staff

Ownership:
NBP BRANCHES NETWORK

Oversea Branches

Domestic Branches

15 Overseas Branches

4 Represative Offices

1 Subsidiary

1 Joint Venture

29 Regional Offices

1,189 Branches
4 Subsidairies

NBP has an extensive domestic branch network of over 1500 branches located all over
Pakistan. The Bank also has a presence in 24 international locations including the USA,
United Kingdom, Europe and the Far East. BRANCHES ALL OVER THE
COUNTRY

I,II,III

Clerical and non

-
clerical staff

Ownership:


Highest standards of integrity.



Institutionalising teamwork and performance culture.



Excellence in service.


Advancement of skills for tomorrow’s challenges.

Awareness of social and community responsibility.



Value creation for all stakeholders.

SENSE OF PURPOSE AND DIRECTION

NBP worked within the framework or instructions provided to them through directives
procedures and systems.


State Bank provides potential regulations and directions time by time NBP worked in it.

STRUCTURE

Corporate hierarchy is vertical in NBP,down to top.

•

NBP identifying core market values among the employees,communicate and motivate
them to remove the diversity.
•

NBP organizing training camps and training programs for their employees.
•
NBP has no gap in communication process.
•

NBP compensate assignments through circulars. •

To handle the language barrier issue,after a meetings Manager oraly convey to the
employees so that everyone can understand it easily.
•

Relationship exists between the leaders and the followers is coperative and strong.
CHALLENGES

NBP face both cultural and ethnic issues.



Working with people from different cultures.



Managing workforce diversity.



Helping employees balance work-life conflicts.



Upgradation of employees according to the environment.

EMPLOYEES OF NBP

Training provided to un-skilled persons to remove the shortage of skilled employees.

•

NBP identify and address labor needs through communication,employees feedback and
meetings.
•

NBP managed their employees through communicating and encouraging them.

BENEFITS & INCENTIVES


Medical facility.


House and car loans.



Yearly 3 bonuses.


Performance award in cash.

POLICIES AND REWARDS

Provide job satisfaction to their employees.

•

Allow employees to participate in decisions that affect them.

•

Good performance reward is also in the form of Hajj and Umrah package.
•

Use goals and feedbacks.

•

Developing a benefits package.

•

HR policies are in the form of circulars and instructions for the employees.
•

Organizing 6 weeks Internship for the students.

•

NBP has no gender bias.

•

There is a free-lancing.

BEST PRACTICES

•
NBP adopted and learned best practices through their good faith, assignments, directions
and well-defined structure.
•

NBP is properly networked.

•

Fraud and forgeries exist where they fall neglegency between systems and employees.
•

Employee development program is organized through training and motivating them. •

Manager of NBP handle conflicts with the help of interacting staff members and
meetings.
•

NBP has a strong and coperative kind of leadership and they influence their subordinates
through motivation factor from the top management.

FACTORS AT THE TIME OF SELECTION

Qualification.


Experience.


Intelligence.


Personality.


Communication skills.
IMPROVE ETHICAL BEHAVIOR

Measuring job satisfaction.

•

Giving them a questionaire.

•

Performance recognition and evaluation.

•

Reward systems.
•

Increase in communication.
•

NBP also provides Stress management program.

Five-year Strategic Plan 2007-2011

Five year plan approved by BOD is hollow and does not address any serious thinking On:
1. Development required for serving major sectors of the economy 2. productivity
improvement and benchmarking with the competition 3. bringing the institution on
international banking landscape in the coming five years, not to speak of the seven years
which the current management has already served 4. inducting and leveraging specialized
human capital 5. infrastructure to support planned growth and vision Even this plan is not
cascaded down the line to align the annual performance targets and resultantly actions
and tasks with the grand plan. Now in its second year, this plan
Financial Highlights:

Amounts in Million

Year to
December

1998

1999

2000

2001

Total
Deposits

235,932

254,863

273,391
294,754

Total Assets

274,117

310,599

325,320

349,932

Total Equity

9,035

12,232

15,411

15,962

Total Loans

85,854

105,597

109,524

122,294

Total
Investments

108,207

106,449

102,969
91,277

Net Profit

(795)

62

529

(178)

EMPLOYEE ENGAGEMENT

NBP Organizing training camps to increase the skills of their employees.



Job rotation is very important.



NBP has flexi timing.



The employees feel proud working with NBP.



NBP involve their employees in participative decision making and giving self respect.


NBP encourage their employees to exercise their own initiative by motivation.

CHANGE MANAGEMENT


NBP manage change with survey feedback, technology in the workplace, sources of
innovation and establish a strategy.


Globalization impact is very vast in NBP with the help of information technology.

GAUGING BEHAVIOR

An employees attitudes are measured by questionnaire.



Salary structure is known to everyone but its depending on the length of service.


In temporariness, there is fear factor of termination between employees.



In NBP, there is a deposit and profit target but employees do not cut corners to meet the
targets and deadlines.


NBP cater absenteeism and turnover by giving warning and memorandum to the
employees but after crossing the third time warning NBP oust them.


NBP handle emotion and moods of the employees by giving them support and
motivation.


NBP identify issues down the line through feedback and communication.


NBP has political influence by State Bank of Pakistan (SBP) and Central Bank of
Pakistan (CBP).


NBP employees show respect to each other.



NBP employees feel their job is a desirable.



More experience members of the NBP take time to help new members.

Executives of NBP lead by example through rational decision making.


OUR ASSESSMENT ON NBP

NBP is fully aware of the developments taking place in the world as well as the changes
occur in the economic and social condition with in the country. The bank is determined to
meet new challenges by redefining its goals and strategy as well as by the adjustment of
its operational policies.