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DEDICATION
To,
.My Parents
Without whom
I am nothing,
&

University of Gujrat
MBA
Supervisor :
National Bank of Pakistan
Chak Jagna Branch
Gujranwala
Date of joining : 12-07-13 t0 21-08-13

My Teachers

1
36
37
38
39
40
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42
43

ES
To interpret my skills and educational knowledge of Finance I have done my
internship in National Bank of Pakistan chak jagna branch, Gujranwala and
to know how I will work in financial institutions and among various types of
people have different attitude.
The objective of this Internship was to explore the issues relating to Finance
and to find out problems regarding the theoretical concepts with practical
working experience in an organization during the internship and study the
system of National Bank of Pakistan. There are many possible
improvements, which we can make positive changes in the system.
The report is based on my two months internship program in National Bank
of Pakistan. The methodology reported for collection of data is primary as
well as secondary data. The biggest source of information is my personal
observation while working with staff and having discussion with them.
The report summarizes the National bank of Pakistan with its working
divided into three parts first part deals with the description of the NBP the
second part covers the theory and practices adopted by NBP and third part
discuss the financial position of NBP, its analysis and at the end concluding
remarks and suggestions are given for improvements. It was too much
difficult for me to describe the functioning of such a vast organization within
the limits. In spite of this I tried my best to describe.
Finally, for any all too fallible errors, omissions and shortcomings in the
writing of the report only I am responsible for which I hope that all
concerning regards of this report will forgive us.

2
3
4

44
45
46
47
48

During this eight weeks long practical glimpse the theories and ideas which
we received from the books have been woven in the texture of our actual
life. No doubt, it has helped us in cultivating the qualities of courage, hope,
initiatives and capacity to turn our knowledge to practical purpose.
Banking sector owes a pivotal importance in the economy of any country
through its vibrant functions. This is the deep seated motivator that geared
up me to join any bank for internship.
National Bank of Pakistan (NBP) was established in 1949 under the
National Bank of Pakistan Ordinance 1949 and was 100% government
owned. NBP acted as an agent of the Central Bank wherever the State
Bank did not have its own Branch. It also undertook Government Treasury
operations. Inside the bank, in branch banking it has Clearing and Collection
Department, Government Receipts Processing Department, Account
Opening

Department,

Remittance

Department,

Customer

Services

Department Cash Department, Deposit Department, Advances and Credit

Department. These are the most common departments exist in almost each
branch.

It is offering different deposit choices, advances, credits and

securities etc for its customers through its corporate branches.

Yet there are many possible improvements, which we can be made and that
can bring positive changes in the system. There is shortage of employees in
the organization. With development of online banking system the load of
work can be decreased. All the staffs do not know about computer. There is
almost one or two employees are trained to operate the system in every
branch. Especially, the cash department is not familiar with computer and
information system. It is not easy for it to implement a new system
immediately it takes a lot of time to replace systems. Once implemented its
testing takes more time. So it is important for the Bank to develop a
research department for redesigning the operations of the Bank
6
7
8

9
10
49
50Introduction

and National Bank of Pakistan

8-12

51

Bank's Profile

52

Introduction

10

53

Overview of Organization

11

54
55Historical

Background

13-16

56

Background

14

57

Establishment

16

58
59Organizational

Structure

17-23

60
61Strategies

of NBP Management of NBP

24-30

62

Competitive Strategy

25

63

Marketing Strategy

25

64

Business Process Analysis

29

66Management

of NBP

31-33

67

Management System

32

68

Corporate Information

32

69
70
71
72
73Commercial
11
12
13

and Retail Banking

34-43

14
15
74

Premium Aamadni Scheme

35

75

Premium Saver Scheme

36

76

Karobar Scheme

36

77

Saiban scheme

37

78

Advance Salary Scheme

38

79

Cash card Scheme

38

80

Cash n Gold Scheme

40

81

Kisan Dost

40

82

Kisan Taqat

41

83

Pak Remit

42

84

NBP Protection Shield

43

86Financial

Analysis

44-54

87

Balance Sheet

45

88

Profit & loss account

46

89

Ratio Analysis

47

90

SWOT Analysis

50

92Work

Performed

55-66

93

Learning and Personal Experience

56

94

Branch Profile

57

95

Branch Hierarchy

58

96

Departments of training

59

97

Accomplishment

65

91

16
17
18

19
20
98

New Knowledge Acquired

66

99
100Findings

and Conclusion

67-75

101

Issues Faced by Branch

68

102

Recommendation

71

103

How Experience impact your carrier

73

104

Conclusion

74

106
107
108
109
110
111
112
113

21
22
23

24
25

114
115
116
117
118
119
120
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139
140
141

26

&

NB P
In this section three topics are discussed:

Bank's Profile

NBP Introduction

Overview of Organization

Vision

Mission

Core values

Goals

27
28

Bank's Profile

142

THE

143

NATIONAL BANK

144
145

299

Type

Government
KSE:NBP
LSE

Established

1949

Headquarter

Principal Office, Karachi Pakistan

Key People

(President & Chairman)

Industry

Banking, capital Market

Products

Loans, Credit Card, Savings, Consumer

Banking etc

Deposits Year (2012)

832152 Million

Net income

17563 Million

Total Assets

1035025 Million

Number of Employees

16457

Number of Branches

1289

Home page

www.nbp.com.pk

30
32

INTRODUCTION

146

147(Incorporated
148
149National
150Bank

Bank of Pakistan is the largest commercial bank operating in Pakistan National

of Pakistan was incorporated in Pakistan under the National Bank of Pakistan

151Ordinance,
152head
153

under the National Bank of Pakistan Ordinance, 1949)

1949 and is listed on all the stock exchanges in Pakistan. It's registered and

office is situated in Karachi.

Bank is engaged providing commercial banking and related services in Pakistan and

154overseas.
155The

NBP headquarters in Karachi, Pakistan with over 1,200 branches country wide. In

156today's

competitive business environment the NBP needed to redefine its role and shed the

157public

sector bank image, for a modern commercial bank. It has offloaded 23.2 percent

158share

in the stock market, and while it has not been completely privatized like the other

159three

public sector banks, partial privatization has taken place. It is listed on the Karachi

160Stock

Exchange.

161
162

Handling of treasury transactions for the Government of Pakistan as agent to the

State Bank of Pakistan.

163
164

Accepting of deposits of money on current, fixed, saving, term deposit and profit and
loss sharing accounts.

165
166

Borrowing money and arranging finance from other banks and advancing and
lending money to its clients.

167
168

Buying, selling, dealing, including entering into forward contracts of foreign

exchange.

169

Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.

170

Generating, undertaking, promoting, etc. of issue of shares and, bonds, etc.

171

Transacting guarantee and indemnity business.

172

Undertaking and executing trusts.

173
174

Joint venturing with foreign dealers, agents and companies for its representation
abroad.

175

Participating in "World Bank" and "Asian Development Bank's" lines of credit.

176
33
34
35

36
38

OVERVIEW OF THE ORGANIZATION

177
178
179
180
181

Vision
"To be recognized as a leader and a brand synonymous with trust, highest standards
of service quality, international best practices and social responsibility."

182

183http://www.nbp.com.pk/AboutUs/Vision.aspx
184

185
186

Mission

187

188
189NBP

will

aspire

to

the

values

that

make

NBP

truly

190the Nations Bank, by:

191
192

Institutionalizing a merit and performance culture

193

Creating a distinctive brand identity by providing the

194

highest standards of services

195
196

Adopting

the

best

198

Maximizing stakeholders value

international

management

practices

corporate

199
200
201

Discharging

our

204
205
206
207
208
209
39
40
41

as

citizen of Pakistan and in countries where we operate.

202
203

responsibility

http://www.nbp.com.pk/AboutUs/Mission.aspx

good

42
44
210

Core values

211
212
213

Highest standards of Integrity

214

Institutionalizing team work and performance culture

215
216

Excellence in service

217
218

Advancement of skills for tomorrows challenges

219
220

Awareness of social and community responsibility

221
222

Value creation for all stakeholder

223
224
225

http://www.nbp.com.pk/AboutUs/CoreValues.aspx

226

GOALS

227
228
229

To enhance profitability and maximization of NBP share through increasing leverage

230

of existing customer base and diversified range of products.

232
231

237

Direction
Excellence in Growth
Excellence in Performance
Excellence in Management
Excellence in Achievement

238
239

http://www.nbp.com.pk/AboutUs/Goals.aspx

233
234
235
236

45
46
47

Excellence in

48

240

HB
In this section two topics are discussed:
Background of Foundation
Establishment

49
50

51
52

HISTORY OF NATIONAL BANK OF

242
PAKISTAN
241

243

BACKGROUND

244
245
246At

the time of partition the total number of Commercial Banks in Pakistan was 38 .Out of

247these

Pakistan had 2 banks, India had 29 and there were 7 exchange banks. Before the

248partition
249by

of Sub Continent the entire banking business was almost controlled and managed

non-Muslims. The Muslims were deliberately kept cut of banking profession by the

250wealthy

Hindu community. When Hindu capitalists became sure of the division of Sub

251Continent,

they secretly began transferring their funds and the other valuables at an

252accelerated
253Pakistan
254down

to India which also caused the drain on the bank deposits. The Hindus closed

most of the head offices and the branches of scheduled and non-scheduled banks in

255Pakistan.
256the

pace to India and there was a mass scale migration of non Muslims from West

The number of scheduled banks branches was reduced from 619 to 213 in both

wings of the country after independence.

257
258The

non-scheduled banks also suffered a severe jolt and their number was reduced from

259411

to 106 over the same period. West Pakistan from where there was greater exodus of

260non-Muslims

to India suffered a great deal, as a number of branches fell down (from 487 to

26169).
262The
263the

mass scale closure of branches and withdrawal of the deposits caused a dead lock in

banking business in Pakistan.

264
265The

government of Pakistan was quite aware of the serious banking situation caused by the

266withdrawal
267challenge
268In

and started reorganizing the crippled banking immediately after partition.

1949 September U.K. devalued its currency, India followed the suit but we did not. India

269said

we had contravened the agreement. On October 3, 1949 the two central banks have to

270announce
53
54

of deposits and wholesale migration of banking staffs to India. It took up the

the new par value of both currencies but India denied the day earlier. India also

55
56
271froze

our trade balance surplus that is still an unsettled dispute. India also draws the

272Marwari
273There
274Two

merchants who were employed annually for movement of jute crop by financing it.

being no jute industry, prices fell sharply, and an agrarian unrest was threatening.

Ordinances were therefore issued.

275

1 Jute board Ordinance &

276

2 NBP ordinance dated 08.11.1949

277In

order to regulate both of the banking on sound footings, the following measures were

278taken

279

to develop the banking system in Pakistan.

The State Bank of Pakistan, which is the central bank of the country, was established
in July 1948.

280

281

The National Bank of Pakistan was established on 1949,to serve as an agent to the
SBP.

282

283

The Industrial Development Bank of Pakistan was set up on August 1, 1961 with a

284

Paid up Capital of Rs; five core. The Agricultural Development Bank of Pakistan

285

(ADBP) was set up in 1961. it provides short , medium and long term loans to the

286

farmers. In Jan, 1974 the entire commercial banks were Nationalized. The weaker

287

commercial banks were merged with the stronger once and in all Five major banking

288

companies were formed. MCB and ABL have again been privatized.

289
290
291
292
293
294

ESTABLIHMENT

295
296

57
58

59
60
297The

normal procedure of establishing a banking company under the Companies Law was

298set

aside and the Bank was established through the promulgation of an Ordinance due to

299the

crisis situation that had developed with regard to financing of jute Trade. The Bank

300commenced
301East

its operations from November 20, 1949 at six important jute centers in the then

Pakistan and directed its resources in financing of jute crop. The Banks Karachi and

302Lahore

offices were subsequently opened in December 1949.

303
304State

bank of Pakistan after its formation demanded from the Indian Reserve Bank the

305assets

against the Indian currency retired from Pakistan territory. Government of India

306refused

to hand over the assets worth about five hundred million rupees. The dispute is still

307unsettled
308was

and these assets are still not delivered to Pakistan. Until June 1950, the Bank

engaged exclusively on jute operation. Thereafter, it was felt that it could expand its

309business
310replaced

to include other commodities as well. Bank took a big stride in 1952, when it
the Imperial Bank of India, as an agent of State Bank of Pakistan. .

311
312With

the passage of time its functioning diversified as they take over the function of different

313institution
314of

India and now of NDFC (national development finance corporation). It is working as the

315agent

of the state bank of Pakistan and performs its functions wherever state bank of

316Pakistan
317

61
62

with the passage of time like in past they took over the function of Imperial bank

is not present.

63

318
319
320
321
322

OS
In this section topic is:
Overall Organizational Structure of NBP
And its hierarchical View

64
65

66
67

ORGANIZATIONAL STRUCTURE

323
324
325

326In

National Bank of Pakistan, the head is called Chairman or President of the Bank. And

327after

President there is Five Broad of Directors. National Bank of Pakistan has eleven Groups

328which

control the working of the Divisions, Wing, Department, Section and Regional of the

329national

bank of Pakistan. In NBP, Department is called Wings.

330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345 Corporate &
Investment
346Banking Group
347
348

Chairman &
President

Presidents
Secretariat

Board of
Directors
Secretary
Board of
Directors

Credit
Management
Group

Audit &
Inspection Group

Compliance
Group

Commercial &
Retail Banking
Group

Treasury
Management
Group

349
350
351
352
353
354
355
356
357
358
359
360
361
68

HRM &
Administration
Group

Operation
Group

Special Assets
Management
Group

Overseas
Management
Group

I.T. Group

69
70
362
363
364National

bank of Pakistan divided their task in to separate jobs. Basically national Bank of

365Pakistan

having different groups, and each group perform different task specialization in their

366department.

National Bank of Pakistan Categories their departments through their work

367specialization.
368Chart

And NBP hire their employees also through work specialization. The following

shows the Work Specialization in the bank. HRM & Administration, Operation,

369Commercial

& Retail Banking, and I.T Group are performing different working in the

370Organization.
371
372
373
374
375
376
377
HRM &
378
Administration
379
Group
380
381
382National Bank of

Operation
Group

Commercial &
Retail Banking
Group

I.T. Group

Pakistan is structurally divided into Groups and groups are also subdivided

383into

Departments, Wings, and Divisions. National Bank of Pakistan has different Department in

384the

Group and each department performing work, as their task assign. Department also

385subdivided

into working bases.

386
387
388
389
390
391
392
393
394
395
396
397
Administration
398
Wing
399
400
71

Credit Management
Group
(Functional Deptt)

Credit
Monitoring
Wing

Industrial
Research
Wing

Credit Policy &

SME Wing

72
73
401
402
403GEOGRAPHIC
404

DEPARTMENT

405
406
407
408
409
410

Special Assets
Management Group
(Geographic Deptt)

411
412
413
414

SAMG - North
(Lahore)

SAMG South
(Karachi)

SAMG Head
Office

415
416
417PROCESS
418

DEPARTMENT

419

420
421
422
423
424
425
426
427
428
429
430
431

Compliance Group
(Process Deptt)

Administration
Wing

432CUSTOMER
433

Market &
Liquidity Risk

SBP
Inspection

Credit Risk

DEPARTMENT

434
435

Operation Group
(Customer Deptt)

436
437
438
439
440
441
442
443
444
74

Customer
Facilitation &
Admn.

Customer
Services & Govt.
Business

Financial
Institutional &
Cash Manag.

75
76
445
446National

Bank of Pakistan (NBP) provides Services through more than 1200 branches in

447Pakistan

and 22 branches in overseas. And there are 29 Regions. All Branches of National

448Bank

of Pakistan report to five Head of RMT Members. And these five members reported to

449regional

Offices. Regional Offices report to the Group Chief of the Groups. All the process is

450working

very quickly and it not consume more time. And the Group Chief of each Group Report

451to

the President of the National Bank of Pakistan. All the data were proceed to the President of

452the

bank.

453
454

Chairman &
President

455
456
457
458

Operation Group
Chief

HRM Group
Chief

Audit &
Inspection Group
Chief

Compliance
Group
Chief

459
460
461
462

West
Region

South
Region

North
Region

Head 1

Head 2

Head 3

Branch 2

Branch 3

East Region

Overseas
Reg

463
464

Head 4

Head 5

465
466

Branch 1

467National
468of

470number

77

Branch 5

Bank of Pakistan is relatively Wide span of control and Flat Structure. National Bank

Pakistan are less layers of management to pass a message through, so the message

469reaches

471

Branch 4

more employees faster. More skillful Group Chief Managers can control a greater
of employees. National Bank of Pakistan assess that the

78
79
472internal
473all

Control environment is showing signs of improvement as compared to previous year in

areas of the Bank.

474
475

Chairman & President

476
477
478

HRM Group

479
480

OD Wing

IRD Wing

T & S Wing

TMG

CMG

Operation
Group

Tech Wing

C. M Wing

481

Admn.
Wing

C. M Wing

Admn.
Wing

482
483National

Bank of Pakistan is having Decentralization in the Bank. And give the authority of

484Decision

Making to their Group Chief of every Group, to take decision, which is benefit for the

485Organization.
486Vice

National Bank of Pakistan provides facility of making decision to their Senior

President as well as Vice President of the every Group.

487
488

President (NBP)

489
490

Group Chief (Group)

491
492
493
494
495
496
497
80

SVP or VP (Group)
AVP (Group)
Grade Officers (Group)

81
82
498National
499action
500the

Bank of Pakistan has low Formalization in the bank. And Employees are free to take

or decision in their work specialization. Employees are follow the rules and regulation in

bank is very little formalized. Employees behavior is little bit guided by rules and

501regulation.
502National

Bank of Pakistan follow the Organic Model Organization. In NBP, there are Cross-

503Functional
504Wide

teams, as well as Cross-hierarchical teams. There are free flow of Information and

span of Control. NBP is Decentralization in nature and very low formalization in the bank.

505Basically

National Bank of Pakistan is high Diagonal Differentiation and every employee of any

506department
507
508
509
510
511

83

can easily communicate to other department of the Bank.

84

512
513
514
515
516

STRATEGIES:
In this section topic is:
Competitive Strategies
Marketing Strategies
Business Process Analysis

85

86
87
517

COMPETITIVE STRATEGY

518

Banking industry in Pakistan is progressing in leaps and bounds and with

519
520this

drastic increase in number is raising the bar of competition amongst the banking

521sector.

Last year the better half of the foreign direct investment was in the banking

522sector.

To stay in this incredible amount of pressure of competition and delivering the good

523son

the deadlines to obtain customer satisfaction and loyalty is the need of the

524hour

and National bank has always proved itself in distant times by providing the cheapest

525i n t e r e s t

rates

526G o v e r n m e n t
527stand
528are

on

loans

given

to

the

corporate

world,

employees

of

institutions in terms of Advance Salaries and to farmers made the bank to

tall in the competition and contributed a lot to the competitive strategy of the bank. They

mainly using the Market Penetration Strategy to attract customers.

529

530

MARKETING STRATEGY

531N a t i o n a l
532h e a r t
533are

Bank strongl y believes in winning the customer by winning his

through complete satisfaction of his/her needs. National banks marketing strategies

more towards making their existing customers loyal because they believe that it i s t h e i r

534c u s t o m e r s
535(Know

who provide them with new customers. The Bank uses KYC

your customer forms) to have complete association with their new customers .

536DEPOSITS
537Target

Market

538P e r s o n a l

Bankers

539i n d i v i d u a l s ,
540legal

markets

include

businessmen,

salaried

housewives, retired individuals and anyone who has the potential of providing

deposits to the bank.

541Promotional

Strategies

542P r o m o t i o n a l
543d i r e c t

marketing has various types; from what I can recall there is

marketing and indirect marketing. Direct marketing is a discipline within

544marketing
88

target

that involves the planned recording, analysis and tracking of individual

89
90
545customers
546mutually

profitable customer relationship. Direct marketing is a form of marketing that

547attempts
548s u c h

response and transactions for the purpose of developing and prolonging

to send its messages directly to c o n s u m e r s u s i n g a d d r e s s a b l e m e d i a ,

a s m a i l a n d ( i n c r e a s i n g l y e m a i l ) , telephone and personal meeting with

549customers.
550d o e s
551such

Therefore, direct marketing differs f r o m r e g u l a r a d v e r t i s i n g i n t h a t i t

n o t p l a c e i t s m e s s a g e s i n a t h i r d p a r t y medium, or in the public market,

as billboard to a radio commercial would.

552
553Instead,

the marketing of the service or commodity is addressed directly to the target

554customer.
555tools
556b e

On the other hand indirect marketing includes such types of advertising

like billboards, TV commercials where no immediate response can be seen neither can

measured.

557K a i s e r ,

matter

what

the

promotional

s t r a t e g y,

as

Mr.

T e a m Manager of Credit Cards Department in Consumer Banking said A

558successful
559be

No

product or service means nothing unless the benefit of such a service can

communicated clearly to the target market National Banks promotional strategies consist of

560Public

Relations

561National
562has

Bank strongly aims to develop positive relationship with public. The bank

promoted healthy sports activities as NBP has built a state of art sports complex at

563Karachi.
564Direct

Mail

565There

has been a massive growth in direct mail campaigns over the last few years. National

566Bank

has complete databases, which contain names and addresses of potential

567customers.
568to

Direct mail allows NBP to use their resources more effectively by allowing them

send publicity material to a named person within their

569
570target

segment. By personalizing advertising, response rates increase thus increasing the

571chance

of improving business.

572Internet

Promotion

573Owning

a website is a now a crucial ingredient to the marketing mix strategy of any

574o r g a n i z a t i o n .
91

National

Banks

customers

can

now

obtain

instant

92
93
575i n f o r m a t i o n
576facilitates

o n products or services to aid them in their crucial decision. Further NBP also

its customers through I-Banking. Customer can register on the web site

577
578and

can enjoy a host of services.

579Personal
580The

Selling (Push Strategy)

foremost Promotional Strategy of NBP is Personal Selling i.e. Selling a products one to

581one.
582
583Direct

Marketing

584Personal
585make
586from

use of Direct Marketing techniques. First of all these

butt at NBP,

is all a matter of keeping your eyes and ears open. W h i l e m e e t i n g w i t h a

589p o t e n t i a l
590r e

c u s t o m e r, i t

is

most

likely

that

you

can

get

new

f e r e n c e f o r a n e w customer

591Once
592as

identify their sources

the reference groups and track down their likely to be customers. According to a Mr.

587Adeel
588It

Bankers at NBP, whose primary job is to bring more and more deposits to the bank,

they get a reference from their existing customer or relative or colleague, they try to get

much information as possible about their potential customer. Then they give a call to the

593customer
594potential

and try to convince him/her over the phone. Customers with greater

are asked for appointments for a face-to-face meeting. Customers who provide the

595bank

with heavy deposits are given special treatment.

596With

every new account opened, National Bank provides a free cheque book and a f r e e

597d e b i t / s h o p p i n g
598balance

card. Other than that, if a customer maintains an average

of one hundred thousand he/she has the facility of making two DDs free of any

599charge.
600Augmented
601Personal
602and

94

Personalized Services

bankers are dedicated to provide with the best possible attention, advice

services to their customers aside from regular.

95
96
603CASH

CARD
604Push Promotional Strategy
605NBP

makes use of push promotional strategy to promote the cash cards business. T h r o u g h

606t h i s

p r o m o t i o n a l s t r a t e g y, B a n k m a k e s u s e o f i t s s a l e s f o r c e a n d t r a d e

607promotion

activities to create consumer demand for cash cards.

608Positioning
609T h e

Cash

Card

610r e s p o n s i b l e
611provides
612Target
613The

the

everyday

usage

needs

of

615global

consumers who desire the flexibility offered by the cash cards. It

the high level of quality customer service.

Market
and upper income consumers who seek greater financial flexibility, a mix of local and

services and support and demand a high level of quality and service

616Approved
617Karachi

Cities

Lahore Islamabad O t h e r s

(All

Cities

where

NBP

x i s t a l o n g w i t h C o l l e c t i o n a n d Verification infrastructure)

619

620
621

622

BUSINESS PROCESS ANALYSIS

623

624After

working in that environment of

625National
626I

Bank of Pakistan

found following points in analyzing Business Process of the Organization.

627Well-defined

97

financially

Cash Cards are targeted towards customers who are financially responsible,

614middle

618e

meets

tasks and duties

Branches

98
99
628The

tasks and duties are defined in such a way that it becomes very easier for the

629employees
630techniques

to perform their assigned tasks. Due to the implementation of modern

the efficiency and accuracy of the work force has been greatly increased.

631Proper

supervision

632There

is a proper supervision system to check and evaluate the performance of each

633employee.
634desired
635Caring
636The

It is the duty of Operations Manager to make sure that every employee is giving the

performance.

environment for the customer

environment of the bank is caring for the customers and every customer is deal with

637proper
638worth

care and attention. All the employees have very professional attitude and know the

of the customer for the business.

639Cooperative
640The

behavior of the staff with the customers is very cooperative and supportive and every

641employee

is ready to facilitate the customer on his best in order to increase the customers

642satisfaction
643Lack
644I t

level.

of customer relationship desk

was observed that there was no customer relationship officer in the

645b r a n c h
646do
647a

and Supportive Staff

t o guide the customer to solve their problems and to tell them that what should they

and where should the y go for the solution of their problems. As

r e s u l t t h e customers keep on disturbing all the employees in order to get their problem

648solved.

This results in the decrease in the employees concentration on their jobs.

649
650Difficulty
651As

in Handling of illiterate customers

the branch is located in such an area where main business is of spare parts and steel

652manufacturing,
653the

Employees to handle these customers.

654Increased
655Due

workload

to the new regulations of the state bank to deduct 0.1 % tax on every check

656amounting

100

the majority of the customers is illiterate. Thus it is not very easy for

to more than Rs. 25000, the customers started issuing too many checks t o

101
102
657a

void

this

658e

m p l o y e e s h a s b e e n significantly increased.

659Employees
660It

As

result

the

overall

work

load

on

motivation level

was observed that at present the motivation level of the employees is not very

661much

high because of the currently announced salary increments, which is not up to t h e

662e m p l o ye e s
663increased

103

tax.

expectation level and because of some other reasons such as,

workload etc.

104
105
664
665
666
667
668

M NBP

669
670
671
672
673
674

In this section topics are:

Management System
Corporate Information

675

Board of Directors

676

Audit committee

677
678
679

106

Auditors

107
109

MANAGEMENT OF ORGANIZATION

680

681Management
682and

is a distinct process consisting of activities of planning, organizing, actuating

controlling performed to determine and accomplish stated objectives with the use of

683human

being and other resources.

685MANGEMENT SYSTEM
686
687The management has two types.
688

Centralized

689

Decentralized

690Centralized

Management tends to concentrate decision making at the top of the

691organization
692
693Decentralized
694organizational
695NBP

disperses decision making and authority throughout and further down the
hierarchy.

have a centralized type of management because all the decisions are taken by the top

696management.
697
698CORPORATE
699Board
700

INFORMATION

of Directors

701
702
703Syed
704
705
110
111
112
113

Ali Raza

Qamar Hussain

114
116

706
707

Nazrat Bashir

708
709
710Mrs.

Haniya Shahid Naseem

Mr. Tariq Kirmani

Director

711http://www.nbp.com.pk/AboutUs/BOD.aspx
712
713Audit

Committee

714
715

Tariq kirmani

Chairman

Nazrat Bashir

Member

Haniya Shahid Naseem

Member

Anjum Asim Shahid Rahman

Charterd Accountant

M. Yousuf Adil Saleem & Co.

Charterd Accountant

Mandviwala & Zafar

Charterd Accountant

716
717Auditors

718
719
720
721
117
118
119
120

121
123
722
723
724
725
726
728
729
730

C& R
B

In this section products offered by NBP are discussed:

Premium Aamadni Scheme
Premium Saver Scheme
Accounts Department
President Karobar Scheme
Saiban Scheme
Advance Salary Scheme
Cash Card Scheme
Cash n Gold Scheme
Kisan Dost Scheme
Kisan Taqat Scheme
Pak Remit

124
125
126
127

128
129

COMMERCIAL & RETAIL BANKING

731
732

733National
734

Bank of Pakistan serving following product lines:

Premium Aamdani Scheme

735

736Unprecedented Safety - Unprecedented Return

737Monthly Income Scheme
739A

monthly income scheme introduced by National Bank of Pakistan for investors as well as

740for

general public. Incentives are available for investors providing finance facility against

741these
742Bank

certificates and also allowed to customers to convert existing deposits into National
Premium Aamdani Certificates.

743
744
745
746
747
748
749
750

Earn up to 12.25% p.a. +

751

Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5
years

752
753

Free Demand Draft, Pay Order and Cheque Book*

754

Convenience of NBP online Aasan Banking (for online banking customers)

755

Free NBP Cash Card (ATM+Debit)

756

Running finance facility up to 90%

757

Profits paid on monthly basis

758
759

130
131

132
133

Period

Profit Rates

1st year

11.25%

2nd year

11.50%

3rd year

11.75%

4th year

12.00%

5th year

12.25%

760http://www.nbp.com.pk/Aamdani/index.aspx
761
762

Premium Saver Scheme

763
764(PLS

yours saving reward

Saving Account)

766

Earn up to 8.50% p.a. +

767

Minimum saving balance of Rs. 20,001/- & a

maximum balance of Rs. 1 million*.

768
769

Free NBP Cash Card (ATM + Debit)

770

Convenience of NBP Online Aasan Banking (for online banking customers)

771

Two debit withdrawals allowed in a month & no limit on number of deposit

transactions

772

773

Profit calculated on monthly and paid on half yearly basis

774 http://www.nbp.com.pk/Premium/index.aspx
775

President's Karobar Scheme Mera Apna Karobar

776

777National

Bank of Pakistan is providing financing under President Karobar Scheme with the

778cooperation

of government of Pakistan. The purpose of this scheme is to reduce

779unemployment

from the country. Main features are as under

780
781

Minimum down payment, 10% of asset price (5% for PCO & Telecaster)

782

Tenure of loans 1 to 5 years (for PCO 2 years)

783

Grace period 3 months

784

Maximum loan amount Rs. 200,000/-

134
135

136
137
785

Age 18-45 years

786

Mark-up (variable) 1 year KIBOR + 2.00% p.a.

787

The customer will pay markup @ 6% p.a., rest will be borne by GOP*

788

Life & disability insurance paid by GOP

789

NBPS loan available for:

790

Utility Store,

791

Transport

792

PCO/Tele-centers

793

Saibaan Scheme Open the Door to Your Dream Home

794

795(Home

Financing)

797National

Bank of Pakistan lending for construction of home to general public as well as

798employees

of government and non-government institutions. Main features of this scheme

799are

as under.

800

Finance is available for:

801

Home Purchase

802

Home Construction

803

Home Renovation

804

Purchase of Land +
Construction

805

Balance Transfer Facility (BTF)

806
807

Period of repayment ranges between 30-20 years.

808

Loan available up to a maximum of Rs. 15-20 million.

138
139

140
141

809

NBP provide markup choices to its consumer i.e. Variable Discount Rate, Fixed
Rate.

810
811

Minimum approval and disbursement timing.

812

Limited to areas where there are no documentations, fee, resale and foreclosure
related issues, so to protect the banks interest.

813

814

Service

duration:

Two

years

for

salaried

class

Three

years

for

self-

employed/business class.

815

816http://www.nbp.com.pk/Saibaan/index.aspx
817

Advance Salary Scheme Personal Loan

818

819Take

up to 20 times of Your Take Home Salary

820Personal

Loan

Easy installments of 1 to 60 months at your choice

821
822

No minimum income collateral & insurance charges required

823

Quick processing and fastest disbursement

824

The product is for permanent employees of Government, Semi Government and

825

Autonomous bodies receiving salaries through NBP accounts.

826

http://www.nbp.com.pk/advancesalary/index.aspx

827
828

Cash Card Scheme one card does it all

829

830ATM

+ Debit Card

831NBP

Cash Card is a 24-hour direct access ATM/ Debit card

to

832bank

account, which lets pay directly from the account as

an

142
143

144
145
833alternative
834entering

payment method to cash. The transaction is authorized and processed by

PIN. The NBP Cash Card holders are able to transact at any of the 4000 +

835Merchants
836ATMs

where Orix logo is displayed and can withdraw cash from NBP, 1-Link & M-NET

across the count.

837

Use it as an ATM in any of the ATMs in Pakistan

838

Use it as Debit Card in any of the outlets with ORIX POS machine

839

Cash withdrawal up to Rs. 20,000/- per day

840

Account Balance Enquiry

841

Mini Statement (Only at NBP ATM)

842

PIN Change facility (Only at NBP ATM)

843http://www.nbp.com.pk/cashcard/index.aspx
844
845

Investor Advantage Scheme easier financing ,profitable trading

846

847Financing

Facility for Stock / Retail Investors

848

Comfortable and secure environment for trading

849

No security requirement from the customer except for the customer's equity

850

Customer's equity freely available for investment.

Equity acceptable in cash or approved share

851

http://www.nbp.com.pk/Margin/index.aspx

852
853

854Eligibility
855

Pakistani Nationality with computerized national ID Card

856

Over 21 years of age

857

An account with NBP designated Branch

146
147

148
149
858

Equity in the form of cash or NBP approved shares

859

No default with any financial institution

860Application

Procedure

861

Obtain facility application form the NBP Marginal Desk at designated branches

862

Fill in the application form and submit it to the branch

863

On application approval, deposit equity as cash in the margin financing account at

864

the bank. Alternatively NBP approved shares can also be deposited in the NBP CDC

865

Account (CDC A/c No. 2345)

Start trading through comfortable & friendly trading centers establishment for you (In

866

collaboration with Taurus Security Limited a subsidiary of NBP)

867

Trading limit available for the amount of equity + bank financing.

868
869
870

Cash n Gold Scheme encash and meet your needs

871

872Ready
873With

Cash Against Gold

NBP's Cash n Gold, provide facility for ready cash against idle gold jewelry with no

874minimum

limit and provide extra benefit. The main features are:

875

Facility of Rs. 20, 000/-against each 10 gms of net weight of Gold Ornaments

876

No maximum limit of cash

877

Repayment after one year

878

Roll over facility

879

No penalty for each repayment

880

http://www.nbp.com.pk/CashnGold/index.aspx

Kisan Dost Scheme Agriculture Made Easy

881
882Agriculture

150
151

Farming Program

152
153
884National
885lending

Bank of Pakistan is lending in agricultural field. National Bank of Pakistan is

farmers for development of agriculture sector of the country under certain terms and

886condition.

887
888
889NBP

provide loan to farmers for production, development purposes, for purchase of

890tractors,
891for

for installation of tube wells, for purchase of agricultural instruments, micro loan,

construction of godan, for construction of fish pond, for development of livestock and

892farming,

for mil processing, for cold storage, bio-gas plants.

893

Competitive mark-up rate.

894

Quick & easy processing

895

Delivery at the farmers doorstep

896

Technical guidance to farmers

897

Wide range of financing schemes for farmers

898

Finance facility up to Rs. 100,000/- for landless farmers against personal guarantee

899

Financing available against pass book, residential/commercial property, gold

ornaments and paper security

900
901
902
903

Loan facility on revolving basis for three years (renewable on yearly basis without
documentation and approval)

http://www.nbp.com.pk/KisanDost/index.aspx

904
905

154
155

Kisan Taqat Scheme promise of prosperity

156
157
906Dairy

Farm Scheme

907
908National

Bank of Pakistan is providing loans for the dairy farms and for the development of

909the

livestock and dairy farms.

910

NBP facilitates with livestock experts

911

Less documentation and easy to repay

912

Available at the next door step

913

Scheme is available in more than 60 branches of NBP

914

http://www.nbp.com.pk/KissanTaqat/index.aspx

915

PakRemit Scheme

916

917NBP's

Internet Based Home Remittence Service

918Product

Information

919Pakremit

is an internet based Home Remittance Service. This service is available to U.S.

920residents

for sending money to their family and friends in Pakistan. One must have a valid

921US

Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit

922funds

through this channel.

923Remitters
924remit
925is

in USA can log on to our user friendly website, www.pakremit.com and easily

funds to Pakistan from the comfort of their homes, in a matter of minutes. The service

fully secure with advance encryption application and is available for use 24 hours a day, 7

926days

a week. Fees and exchange rate have been set at competitive levels and the remitters

927have

the ability to track delivery of funds as well.

928
929
930
931
158
159

160
161
932USPs

( Unique Selling Propositions)

933

Convenient and Fast

934

Reliable and Secure

935

Available 24 x 7

936http://www.nbp.com.pk/Pakremit/index.aspx
937

NBP Protection Shield Scheme Life is Precious

938

939Personal
940No

Accident Insurance

documentation

941

No medical required

942

Premium Auto Debit facility & choice of deactivation

943

Coverage includes death due to:

944

Natural Calamities e.g. Earthquake, Flood, Cyclone etc.

945

Accident

946

Riots*

947

Civil Commotion*

948

Strikes*

949

Acts of Terrorism*

950NBP

Protection Shield

951NBP

Protection Shield

952(Life

is Precious)

953http://www.nbp.com.pk/ProtectionShield/index.aspx
954
955
956
957
958
959
960
961
962
963
162
163

164
165
964
965
966
967
968

FA

969
970
971
972
973
974

In this section topics are:

975

Balance Sheet

976

Profit and Loss Account

977

SWOT Analysis
978

Strength

979
980
981
982

Weaknesses
Opportunity
Threats

166
167

168
983

FINANCIAL
ANALYSIS

984
985

986
987The

financial statement of any organization shows

988results

the

of its operation and its position in the

989business.

It is a process which involves reclassification and summarization of information

990through

the establishment of ratios and trends. The overall objective of financial statement

991analysis

is the examination of a firms financial position.

992
993
994

National Bank of Pakistan

995

Statement of Financial Position

As at December 31, 2012

996
997
998Balance
999------

Sheet (Un-audited) (Audited)

(Rupees in '000) ------

1000
1001
1002ASSETS
1003Cash

and balances with treasury banks

1004Investments
1005Financing and Receivables
1006Fixed Assets
1007Other assets

2011
4 9,711
4 06,209
3 60,774
1 07,451
27,154

2012
43,290
144,789
736,417
104,314
8,627

1008
1009Total
1010
1011
1012
1013
1014
169
170
171
172

Assets

9 51,300

1,037,437

173
1015
1016LIABILITIES
1017
1018Bills

payable
1019Deposits and other accounts
1020Due to Head Office
1021Other liabilities
1022Total liabilities

4, 433
5 94,030
9 3,130
32,491
724,084

6,070
507,760
246,385
58,870
819,085

2 27,216

218,352

3 00,000
( 19,679)
2 80,321
( 53,106)

300,000
(11,437)
288,563
(70,211)

2 27,216

218,352

1023
1024NET

ASSETS
1025REPRESENTED BY
1026NBP Fund
1027UN remitted (loss) / profit
1028
1029Surplus
1030

on Revaluation of Assets

1031
1032
1033Profit
1034The

and Loss Account

Bank is operating 8 (December 31, 2011: ) NBP branches as at Sept 30,

10352012.

The balance sheet and profit and loss

1036Account

of such branches is as under:

2011

1037

2012

1038Profit

/ return on financing and placements earned

1 18,343

142,090

1039Profit

/ return on deposit and other dues expensed

3 3,289

62,033

8 5,054

80,057

1040Net

spread earned

1041OTHER
1042Fee,

commission and brokerage income

1043Income
1044Other
1045Total
1046
174
175
176
177

INCOME
from dealing in foreign currencies

income

other income

2 ,509

1,367

3 55

24

9,834

2 ,887

11,201

178
1047OTHER

EXPENSES

1048Administrative
1049Other
1050Total

expenses

charges

other expenses

1051

1 07,620

81,008

200

1 07,620

81,208

( 19,679)

10,050

1052
1053
1054
1055RATIO
1056Ratio
1057any

ANALYSIS

analysis includes method of interpreting financial ratios to access the performance of

organization. The basic input to ratio analysis is profit and loss account and balance

1058sheet.

Ration analysis of any organization is in interest of its creditors, employees,

1059shareholders
1060interested
1061Ratio
1062as

in the ratio analysis of organization

analysis is a valuable aid to management in the discharge of its basic functions such

planning, forecasting, control etc. these ratios describe the relationship with the

1063functioning
1064great
1065a

1068
1069
1070
1071
179
180
181
182

of the business and helpful for controlling cost of goods manufactured. The

advantage of ratio analysis is that it reduces raw data of widely varying magnitude to

common comparative basis. Thus, ratio analysis is the most meaningful to compare

1066financial
1067

and of its management as well. Both existing and prospective customer are

information regarding a giving company.

183
1072Current

Ratio

1073
1074 Current ratio=
1075
1076
1077
1078
1079
Current
1080
1081
Current
1082
1083
1084
Current
1085
1086
1087Interpretation
1088An

Current assets
Current liabilities
Year 2011

Year 2012

assets

816694

924496

liabilities

691593

760215

1.18

1.21

ratio

increase in the current ratio represents improvement in the liquidity position of bank

1089while

a decrease in the current ratio indicates that there has been deterioration in the

1090liquidity

position of the bank.

1091
1092Net
1093Net

Working Capital

Working Capital=current assets-current liabilities

1094
1095
1096
1097
Current assets
1098
1099
Current liabilities
1100
Working Capital
1101
1102
1103
1104Interpretation

Year 2011
816694
691593
125101

Year 2012
924496
760215
164281

1105

1106Net

Working capital should increase which will show that there is increase in current assets.

1107
1108
1109Debt
1110
184
185
186
187

Ratio

188
1111Debt
1112
1113

Ratio=Total liabilities
Total assets

1114
1115
1116
1117
Total liabilities
1118
1119
Total assets
1120
1121
Debt ratio
1122
1123
1124Interpretation

Year 2011
724084

Year 2012
819085

951300
0.76

1037437
0.78

1125The

debt ratio measures the proportion of total assets by the creditors. The greater this

1126ratio

the greater the amount of other peoples money being used to generate profits. The

1127higher
1128ratio
1129
1130
1131
1132
1133
1134
1135
1136
1137
1138
1139
1140
1141
1142
1143

189
190
191
192

this ratio greater the degree of indebtedness an more financial leverage. NBPs debt

is increasing in 2012 as compared with 2011 which is not favorable.

193
1144
1145
1146SWOT
1147

analysis is an acronym that stands for

1148

Strengths

1149

Weaknesses

1150

Opportunities

1151

Threats

1152
1153SWOT
1154as

analysis is careful evaluation of an organizations internal strengths and weakness

well as its environment opportunities and threats. In SWOT analysis the best strategies

1155accomplish

an organizations mission by:

1156

Exploiting an organizations opportunities and strength

1157

Neutralizing it threats

1158

Avoiding or correcting its weakness

1159SWOT

analysis is one of the most important steps in formulating strategy using the

1160organization

mission as a context, managers assess internal strengths distinctive

1161competencies
1162develop
1163avoid

and weakness and external opportunities and threats. The goal is to then

good strategies and exploit opportunities and strengths neutralize threats and

weaknesses.

1164
1165STRENGTH
1166National
194
195
196
197

Bank the Nations Bank

198
1167State

]
Bank of Pakistan is government owned bank that is why Pakistani nation has a trust

1168on

the bank that their deposits are secured. Due to this reason the deposits of the banks

1169are

increasing with the passage of time.

1170Agent
1171State

of State Bank of Pakistan: National Bank of Pakistan also works as an agent of

bank of Pakistan in those cities where SBP branches are not working.

1172Agency
1173Govt.

Arrangements: National Bank of Pakistan is enjoying with deposit of different

organization like Pakistan Railways, PIA, WAPDA, Sui-gas due to agency

1174arrangements.
1175Deposits:
1176biggest

National bank of Pakistan is the largest commercial bank of the country and has

Deposits and becomes the first bank to cross the deposit of Rs. 350 billion.

1177Profitability
1178The

pre-tax profits of NBP have gone very high.

1179Corporate
1180National
1181higher

Bank of Pakistan is now the biggest financial institution with assets The bank is the

financer in agriculture and commodity operation sector.

1182Collection
1183in

Branches

of Cash from Shrines: Cash collected from different shrines is also deposited

National Bank of Pakistan.

1184Comprehensive
1185In

Range of Financial Products

order to facilitate the customers, NBP is offering the comprehensive range of financial

1186products

which are as follows:

1187

Credit Cards

1188

Foreign Exchange Bearer Certificates

1189

National Bank Daily Accounts

1190

Travelers Cheques etc.

1191
1192
1193Investing
1194NBP

has decided to diversify the fund base by investing in capital markets not only in

1195Pakistan
1196
199
200
201
202

in Capital Market

but also in the foreign countries.

203
1197

WEAKNESSES

1198Beside
1199

a public bank it has the following weaknesses

Customer Satisfaction

1200

In NBP customer dealing is well, but during rush hour the customer has to wait for a

1201

long time for their turn. Its quite hard for a new customer or potential customer to get

1202

the required information.

1203
1204

Poor record management and filing system

1205

During my internship I observed that filing system of branch is not good. When

1206

certain record is needed the staff has to struggle to find it out and a lot of time is

1207

wasted.

1208
1209

Unequal distribution of work

1210

Work is not equally distributed. On one hand some employees have to work all day

1211

without relaxing while some others have nothing to do at all. This not only creates

1212

confusion among employees but also hurting and disturbing for overall setup of the

1213

bank. And above all it results in dissatisfaction among customers as well.

1214
1215

Marketing visits

1216

A useful mode of contact is through personal marketing visits. Such visits are

1217

important in informing and perusing the existing and potential customers about the

1218

products and creating a sense of belongingness with them.

1219
1220
1221

More accounts fewer deposits.

1222

Efficient banking is one which does not emphasize on number of accounts but on

1223

greater amount of deposits. NBP is more interested in increasing its number of

1224

account irrespective to its deposit.

1225
1226
204
205
206
207

208
1227OPPORTUNITIES
1228
1229Consumer
1230other

durable goods are not adequately financed by the banks. So by initiating these

1231services,

the bank can enjoy with more funds.

1232Investing
1233base

Banking : The basis need of the consumer such as housing, transportation and

in the Foreign Capital Market: NBP can enjoy handsome return its funding

by investing in capital markets in the foreign countries.

1234Investment
1235entity
1236in

Banking: Until recently the bank perceived as purely commercial banking

so in order to expand its business the bank may start investment banking by investing

the portfolio of handsome return.

1237New

Branches: NBP by establishing new branches in foreign countries can expand its

1238business

and can enjoy with the profit.

1239Issuance
1240range

of bonds.

1241Night

Banking: Despite of poor customer service of NBP, people still come to NBP

1242because
1243giving

of Bonds: To enjoy with large amount, NBP can introduce a comprehensive

of its Govt. ownership as they feel it secure therefore bank improve its deposit by

facility of night banking and also can compete its competitors with positive steps.

1244
1245
1246
1247
1248
1249THREATS
1250
1251Competition:
1252to

The no. of banks in Pakistan is increasing with the passage of time. So due

poor working condition and poor customer service it may be possible NBP will lose its

1253market

share in future.

1254
1255Inflation:
1256due
209
210
211
212

In our country, the rate of inflation is increasing along with the unemployment. So

to the increase in price of the products, the savings of the nation is decreasing with the

213
1257passage
1258bank

]
of time. So it is the threat for the banking sector. In the future, the deposits of the

will decrease.

1259
1260Government
1261policies
1262frame
1263

214
215
216
217

Policy: On NBP Govt. policies have strong impact. A slight change in Govt.

may affect the performance of the bank. The bank has to work with in the regulation

work.

218

1264
1265
1266
1267

WP
In this section topics are:
Lesson learned and Personal experience
Branch Profile
Branch Hierarchy
Duties performed in different Departments
Remittance Department
Account opening Department
Foreign Exchange Department
GOVT Department
Use of Information Technology
Accomplishments
New Knowledge Acquired

219

220
221

LEARNING AND PERSONAL INTERNSHIP

1268

EXPERIENCE

1269
1270

In university of Gujarat the students are required to undergo for minimum six weeks of
1271

internship to complete the second semester of MBA. For this reason, I carried out my

1272

internship in National Bank of Pakistan, chak jagna Branch, Gujranwala and tried to

1273

prepare my report.

1274

This branch was founded in July 1970. Last many years this branch is not only

1275

achieving its targets of deposits and advances rather it also remains above the

1276
1277
1278
1279

targets. According to the financial record of last year this branch was earning more
than 20% of total profit of the region.
Every year the targets of this branch are increasing by 20 to 25 percent but still there
is a potential in the market to meet these additional targets. This branch is performing
its functions in traditional style and most of the work is done manually but in spite of all

1280

challenges and lack of resources the branch is now trying to make most of its

1281

activities computerized.

1282

During the session of Eight weeks I work in different departments on weekly basis.

1283

The employees of the bank help me and provide me all required information. I studied

1284

major functions, objectives and future planning. I worked in different departments

1285

during working as an internee which proves to me very beneficial and me able to get
basic concepts of banking operations.

1286
1287
1288
1289

After joining the bank for internship I got the practical exposure of all the banking
activities. The mechanism is not too simple to understand easily but still lots of
complexities have been solved. All the staff of the branch provided me their time
and information which helped me to enhance my knowledge and they also
shared their experiences with me which I believe that it would be helpful in my

1290

222
223
224
225

practical life.

226
227

BRANCH PROFILE

1291

Name of Branch

National Bank of Pakistan

CHAK JAGNA Branch

Region

Gujranwala

Establishment

1970

Region Code

13

Branch Code

1498
National Bank of Pakistan

Address

Chak jagna Branch,

Gujranwala.

Phone Number

92000346

Fax Number

9200335

Name of Manager

Kaiser Shahzad

Number of Working Staff

15
(Including contractual & outsourced staff)

Number of Non- Working Staff 04

Branch category
1292
1293
228
229
230
231

II

232
233
1294

Starting and ending dates of internship

1295

Starting Date------ 12-07-2013

1296

Ending Date------ 21-08-2013

1297.

BRANCH HIERARCHY

1298

MANAGER

1299
1300

MANAGER OPERATION

1301
1302
1303

ESTABLISHMENT
OFFICER GRADE - I

1304
1305
1306

OFFICER GRADE - II
OFFICER GRADE - III

1307

MESSENGER
1308
1309

PEON

1310

SWEEPER
1311
1312Name
1313

1314

234
235
236
237

of Manager------------------------ Khawaja Atif Hussain

238
239

DEPARTMENTS OF TRAINIG

1315

1316During
1317This

the internship period of 8 weeks I got training in various departments in the branch.

branch do not deals with foreign exchange and online bank but foreign remittance is

1318carried

out.

1319My activities in Remittance Department

1320 It is transfer of money payable at a certain place
1321various

within or outside the country through

way i.e. Bank draft, Mail Transfer, Coupons, Govt. Draft. It works both inward and

1322outward.

It was my first department. Mr. Abid Tufail is the controller of section who is a very

1323competent person. Duties performed by him are;

1324
Issuing of demand draft
1325
Issuing of Mail transfer
1326
Issuing of payment order
1327
Closing of government collections
1328
Intercity and Short Credit Clearing
1329
Accounts opening
1330
Issuance of cheque books
1331In this section I learnt about issuance of PO, DD,

MT. I made all the categories of funds

1332transfer. Mr. Abid helped me a lot to achieve this target.

1333D.D & P.O: P.O is used locally and to transfer amount within
1334for outside the city.
1335Demand draft:
1336Procedure
1337
First on the request

the city whereas D.D is used

of the customer all the details for issuance are demanded from

1338
1339
1340

customer
The customer can be account holder or non- account holder.
While issuing the bank draft the care is taken that draft should be free from

1341
1342
1343

alternations.
All the details must be clearly written in ink.
After deduction of charges, issuance of demand draft is handed over to the applicant

.
Its advice containing the particulars of the draft is sent to the drawer branch with its

1344
1345

1346
necessary
1347Payment order
1348Procedure
240
241
242
243

information and payment of draft is make on its presentation.

244
245

Two applications forms called credit vouchers for payment and for bank commission

1349

1350
1351

1352

1353

1354

1355

1356Mail

are made.
Application form is attached with check , debit authority or make payment in cash.
Then the payment order is made.
Then payment order is given to the customer.
Pay order for clearing again come to National bank of Pakistan.
Nothing is sent to next branch, no fanfold is made.
transfer

1357This

is the facility just for account holders. Amount of M.T & T.T is transferred in account of

1358payee.

Mail transfer is time consuming while telegraphic transfer is fast.

1359Procedure
1360

Filling of application form.

1361

Then make payment.

1362

Preparation of M.T advice.

1363

Then fanfold is made on F15.

1364

M.T advice plus fanfold (red copy) is sent to responding branch.

1365

M.T code is 22.

My activities in Accounts Opening Department

1366

1367In

this department, I gain the practical knowledge about account opening , as this

1368department
1369matters
1370these

also deals in opening account and saving account for its customers and all

regarding thereof. The customers mainly opens current and saving account and

can be opened by Individual , firms , Company , Trust , staff etc. I got training in this

1371department
1372account

for one week and after understand the basic concept I practically opened

of walk-in-customers.

1373Requirements

for opening a account

1374
1375
246
247
248
249

1 copy of NIC

250
251
1376

1 copy of NIC of next of KIN

1377

verification of NIC (account holder)

1378

1 copy of utility bill.

1379

Letter of recommendation from concerned department(GOVT)

(in case of govt

servant, salary account )

1380
1381

1382TYPES

OF ACCOUNT:

1383
1384

Current

1385

PLS saving

1386

PLS SNTDR

1387

PLS term

1388

FC

1389

BBA

1390

Premium saver

1391

NIDA

1392

Call deposit

1393
1394There

are two accounts which are mostly opened they are current and PLS

1395account.other

accounts are rarely open.

1396
1397Items

involved in account opening:

1398
1399

Account opening form

1400

Signature speciman card

1401

Letter of thanks (F-529)

1402

Pay-in-slip (cash)

1403
1404Procedure
252
253
254
255

saving

256
257
1405After

completion all requirements for account opening. I fill the information on account

1406opening

form by verifying the NIC. Then I attached a signature specimen card for signature

1407verification.then
1408this

I take the signature of client on 14 places on account opening form. Then

form is verified and allowed for operation manager.

1409

1410Then

next step is to enter all information on register(manualy).After assigning the account

1411number

there is requirement to deposit cash in account minimum RS.300 for that we have

1412cash

deposit voucher(pay-in-slip).

1413Then

I attached a letter of thanks F-529 with accoutn opening form which will be dispatched

1414by

our branch dispather.

1415letter

of thanks F-529 is basically for address confirmation of client.

1416
1417
1418Issuance
1419Previously
1420name

of check book:

bank was issuing check books manualy by stamping the account number and

of person.But a banker instituion called NIFT(national institution of facilitation

1421technology)
1422books

provide us service and entitled the reponsibility to provide us printed cheque

from KARACHI head office.

My activities in foreign Exchange Department

1423

1424In

this Department Mr.Israr tell me about Western Union.The money which has received

1425from

abroad is to be paid here in western union department of NATIONAL BANK OF

1426PAKISTAN.
1427This

He told me a software called SAMBA for making payment of foreign currency.

software is online and have no chance of fraud. All the payments will be given to those

1428persons
1429collect

in who's name the sender has send the money. And no other person will be able to

the payment.

1430

1431REQUIREMENTS
1432There
1433
1434
258
259
260
261

OF PAYMENT

are following things are require for the payment of western union.
Photo copy of N.I.C of receiver attested from 2 persons the incharge of western
union or any authorized person of the bank

262
263
1435

MTCN code

1436

Receiver name

1437

Total amount

1438After

checking this information I start the procedure on the western union software

My Activities in Clearing Department

1439

1440Clearing
1441have

is a process in which different banks treat the cheque of one another. All the banks

accounts in NBP. Debit or credit according to the customer order through

1442cheque/instrument.
1443by

Clearing is done two times in a day, first inward clearing which is dealed

Miss Bushra Ch. at 9.15 am then outward clearing (Local & Intercity) at 1.30 pm which is

1444done

by Sir Adeel Butt. I have full command on outward clearing. Sir also told me about the

1445charges

recovered by the bank after the bouncing and clearance of the cheque.

1446Local

Clearing Charges:

1447Local

clearing has no charges after the clearance/realization of the cheque. But returning

1448charges
1449224

are taken by the customers if the cheque is bounced by the payee branch. Total

rupees are recovered if local cheque is returned / unpaid.

1450Commission=
1451Federal

Exise Duty (FED) = 24 (16% of Commission)

1452Postage

charges= 50

1453Intercity
1454Intercity
1455cheque

150

Cheque Clearing Charges:

clearing means out of city clearing. Intercity clearing charges after the clearance of
are;

1456

0.15 % Commission, 70 Rupees postage charges and 16% FED on commission

1457
1458

amount is taken in case of NBP cheque.

0.20 % Commission, 70 Rupees postage charges and 16% FED on commission

1459

amount is taken in case of other banks cheque (other than NBP)

1460

1461Intercity
1462Intercity

Cheque Returning Charges:

cheque returning charges are fix i.e, 244 Rupees

1463Commission=
1464

264
265
266
267

150, Postage = 70, FED= 24

268
269
1465MY
1466In

ACTIVITIES IN GOVT. DEPARTMENT

Govt. section I was concerned to make scrolls of pension distribution, passport fee, traffic

1467challans,
1468ledger.

And at the end of the day making debit and credit voucher for government's

1469payment
1470bank
1471to

and utility bills and at the end of the day total them and check them with counter
(pension) and revenue collection. These vouchers are sent to the IT section of the

where the corresponding accounts are updated by the amounts of the vouchers. Also

make entries in the pension ledgers and in the book of the pensioners.

1472
1473
1474Use

of Information Technology in Decision making

1475Today

banking is becoming more and more complex with the introduction of new products,

1476services

and enhancing regulatory compliance requirements. It is the use of information

1477technology

that can improve the customers services and reduce the cost at the same time.

1478NBP

adopted Software for service providing motives. I record the data of CIF, ECIB, and

1479EOBI

on the computer.

Accomplishment:

1480

1481IMPLEMENTATION
1482The

OF CLASS ROOM LEARNING

first thing which I noticed is that ground realities are different as compared to with the

1483theories

or some factors which increase this difference like management practices,

1484economic

conditions, political scenario and other external factors. But still we cant deny the

1485importance

of class room theories because they help us in great way in understanding the

1486operations

of the bank. The courses of Management and HRM enable me that how bank

1487should
1488the

be reactive toward changes like economic, cultural, and technological and deals with

issues relating staff. I saw the practical implementation of Marketing Management

1489being

followed in retail banking e.g. in new product development and communicating its

1490features

to target audience. The subjects of International finance and Analysis of financial

1491statements
270
271
272
273

helped me lot while I was working in the foreign exchange department and while

274
275
1492preparing

this report. Also the subject of Accounting and Financial management helps me

1493while

I was working in credit department. The financing process of all international trade

1494which

modern banking made less complicated and more secure have increased with the

1495global-village
1496share

concept in the world. For banks it is an opportunity to grasp the maximum

as possible through being more efficient to reach the customer.

1497

NEW KNOWLEDGE ACQUIRED

1498

1499WHAT
1500In

I LEARNT IN THE ORGANIZATION

the organization, my knowledge was very much enhanced. I learnt a lot, few of which are

1501as:

I got the practical experience about how to work in a professional environment; it gives

1502me

the opportunity to shape my behavior, attitude and my thoughts. I learnt the professional

1503attitude
1504job.

I saw, how much it is necessary to do the job in a friendly environment. What are the

1505working
1506that

1508types

1510
1511
1512
1513
1514
1515
1516
1517
276
277
278
279

relationships and responsibilities of supervisors and their subordinates I observed

how to deal with the customers, what are their needs and what do they expect from the

1507service

1509of

of the people. I also observed that one must have to be dedicated towards his/her

provider. It also helped me to understand the importance of working in different

of environment and conditions. Overall, I can say that it was my very good experience

doing my internship in NBP chak jagna Branch.

F&C
280
281
1518
1519
1520
1521
1522

In this section topics are:

Problems faced by the branch
Suggestions and Recommendations

1523

How Experience impact on my career

1524

Conclusion

1525
1526
1527
1528
1529
1530
1531
1532
1533
1534
1535
1536
1537
1538
1539
1540
1541
1542
1543
1544
1545

282
283
284
285

Bibliography

286
287
1546
1547
1548
1549
1550.
1551
1552
1553

288
289
290
291

292
293
1554

Problems faced by Branch

1555
1556During

my internship at this particular branch of national bank of Pakistan, there are

1557following
1558the

problems I have found which are directly affect on efficiency and performance of

bank. There problems are also called as an internal problems. So these are discussing

1559below.
1560
1561

1. Lack 0f Communication Among The Employees: During the period of my

1562

internship I found this problem as a biggest problem that, they are not very effective

1563

in communication between themselves. They do not share the experience with each

1564

other and do not care the other employees. If one employee has a problem, then he

1565

asked to other, but he does not give clear solution to that problems. They are shows

1566

the facial expressions against each other. Pension manager and other employees

1567

are always tried to gain cash/performance award and use the references to get it.

1568

They are talk against each other in front of me. So finally it is very needy for a public

1569

services organization to keep atmosphere friendly among the management and

1570

employees. National bank of Pakistan (chak jagna Branch) is lack in communication

1571

skills among the employees.

1572
1573

2. Professional Approach: Work specialization and job specification are found very

1574

low in banks employees. Business administration qualities and education is at low

1575

side.

1576
1577

3. Lack of Computing Skills: Computing skills are also low, some executive are very

1578

efficient in computing skills but some are not totally aware from this system. For

1579

example ATM machine at this branch is only handled by cash manager. When cash

1580

manager is on leave due to some reason, ATM machine is off not worked because

1581

no body knows to run this machine.

1582

294
295
296

297
298
1583
1584

4. Western Union is not worked effectively. The person who handled western Union is
careless and other employees are not taken interest in that task.

1585
1586

5. Shortage of Staff: There is shortage of staff in the Bank. Number of customer per

1587

employee is very high. Cash department is suffering very badly and facing great deal

1588

of over workload.

1589
1590
1591
1592

6. Training: NBP has no great facility for their employees for training of new
technologies. This situation creates difficulty for handling new challenge.

1593
1594

7. Pensioner's sitting Arrangement: Bank should take step for the sitting

1595

arrangement of the old age employees and pensioners for. Also management should

1596

purchase more furniture and arrange them in such a way which provides maximum

1597

space and convenient specially in deposit department and there should also be

1598

convenient sitting place for customers.

1599
1600

8. Need of Telephone Operator: Branch has the problem of telephone operator which

1601

can save the time of not only manager but other staff as well. On the other hand

1602

banks communication system was not doing well. Therefore as an internee I felt that

1603

there should be a telephone operator who can easily handle this situation.

1604
1605
1606

9. Staff Attitude: Due to heavy load of work staff attitude does not ideal for an
organization where public dealing is at large scale.

1607
1608

10. Work Environment: Work environment was not ideal due to heavy customers visit

1609

in a single day. Furniture, light and sitting arrangement was not good for customers

1610

and bank employees.

1611

299
300
301

302
303
1612

11. Professional Approach: Work specialization and job specification are found very

1613

low in banks employees. Business administration qualities and education is at low

1614

side.

1615

12. Undemocratic Decision Making: I observed that some times employees are not

1616

involved in decision-making process. Manager himself takes decision and orders to

1617

make changes.

304
305
306

307
308

13.

1618

SUGGESTIONS & RECOMMENDATIONS

1619
1620As

analysis shows that NBP is a most growing organization with highest return on capital,

1621The

bank has been able to strategically manage and build on its competitive advantage, by

1622knowing
1623making
1624need

customers requirements, understanding employees need, modern technology, to

social responsibility and looking towards stakeholders values. But there is further

for improvement. To overcome weaknesses and to maintain its position as an Asian

1625Tiger

in banking field, following recommendations are made:

Determine the customer satisfaction and improve perceived levels of service.

A customers view of your business will help to increase banks profit.
Report competitive strengths and weaknesses to higher management.
Confirm the integrity of employees, company procedures and control.
Support an incentive program that will boost employees productivity and loyalty.
Identify problems whether large or small.

1626
1627
1628
1629
1630
1631

Staff

1632

strength should be enhanced and professional qualified persons should be

recruited.

1633

It

1634

is recommended that proper training be provided to the staff members that will

ultimately increase the performance of Bank over all.

1635

It

1636

is suggested that promotion be given to the staff in due time and on the basis of

performance to provide job satisfaction.

1637

The

1638

bank should spend more on renovation of the branches to improve environment

and atmosphere to attract the customers.

1639

There should be a proper desk for customers information in every branch.

1640

Sitting arrangement, air conditioning and new furniture should be facilitated

1641

The Bank should introduce the computers software to cope the heavy load of work and

1642
1643
309
310

better control.

311
312

Extra

1644

counters should be established in order to facilitate during the rush days the

difficulties faced by the bank staff as well as the customers.

1645

All Branches of the Bank must be online.

1646

All the departments should be established separately in every branch.

1647

The Bank should locate new market for its operational activities in the country as well as

1648

abroad.

1649

The

1650

Bank should increase profit rate on deposits and saving schemes especially for

pensioners and old age citizens.

1651

For

improvement of internal control and system the compliance wing and surprise

1652

inspection system should work more effectively.

1653

The bank should use broad casting media for promotion of its products and services and

1654
1655

to further expand its area through more aggressive marketing. Customer services must

1656

be better to improve the efficiency of branch, which results in quality work and causes

1657

the customer attraction that will create lucraturable activities.

1658
1659These

and many other that can make a good set of recommendations, which have to be

1660made

possible to escape from the threats and weaknesses and the risks in environment

1661that

surrounds the Bank. The management do considers the policy matter that is not

1662helping
1663to

the Bank, but are still in practice due the absence of prudentially regulated system

protect them and the Bank.

1664
1665Efforts

have been made with serious concern to give NBP a status that it has to maintain by

1666having

practices of:

1667

Right sizing of the employees.

1669 By closing unprofitable branches.
1670 By introducing a merit based selection criteria.
1671 Promotions made conditional with qualifications.
1668

313
314

315
316
1672

HOW EXPERINCE IMPACTS MY CAREER

1673

1674I

learnt a lot, few of which are as: I got the practical experience about how to work in a

1675professional
1676internship
1677This

in NBP chak jagna Branch.

experience is add in my C.V and if I want to apply in banking sector then this

1678experience
1679be

environment. I can say that it was my very good experience of doing my

is very helpful in my interviews and also have much impact in my practical life to

professional.

1680

1681

1682

1683

1684

1685

1686

CONCLUSION

1687
1688The

report is all about National Bank of Pakistan, one of the leading bank of Pakistan

1689banking

industry with 1254 nationwide and almost 25 branches operating in other countries

1690including
317
318

USA, China, France, Hong Kong, Azerbaijan, Bangladesh, Hong Kong. It has

319
320
1691maximum

coverage with facilities of ATM and online banking throughout Pakistan. National

1692Bank

of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance

16931949.

The primary objective of NBP was to purchase jute from the growers in the former

1694East

Pakistan and also to perform the commercial banking functions in the country.

1695
1696It

is a part of State Bank of Pakistan and it is its major strength. It is providing different

1697facilities

to its customers. Inside the bank, in branch banking it has Clearing and Collection

1698Department,

Government Receipts Processing Department, Account Opening Department,

1699Remittance

Department, Customer Services Department Cash Department, Deposit

1700Department,

Advances and Credit Department. These are the most common departments

1701exist

in almost each branch. It is offering different deposit choices, advances, credits and

1702securities

etc for its customers.

1703
1704Its

Human Resource is its major strength that is leading this bank in this way but there is

1705much

gap to cover yet. The other strengths this bank has are that it is acting as Agent of

1706State

Bank of Pakistan, providing Agency Arrangements for different government

1707organizations
1708Pakistan
1709it

include WAPDA and PIA, Profitability and a vide coverage throughout

through its Corporate Branches. And also it has comprehensive range of products

is offering in market.

1710
1711The

challenge it is facing are currently the lack of implementation of rules and regulations

1712that

may lead to weak organizational culture, old organizational culture, no regular

1713promotions
1714are

practices and not much use of IT technology in bank as other are using. There

many workers and employees unions exist in National Bank of Pakistan that use to play

1715organizational

politics instead of doing productive work that leads to wastage of time.

1716
1717As

analysis shows that NBP is a most growing organization with highest return on capital,

1718largest

market share amongst all Pakistani banks and cost to income ratio is the highest in

1719banking

sector. But there is further need for improvement to overcome weaknesses and to

1720maintain
1721
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322

its position as an Asian Tiger in banking field.

323
324
1722As

far as my internship and experience is concern, I learnt a lot during my internship

1723because
1724MBA

I got practical knowledge before entering in the practical life after completion of my

degree. I learn a lot about banking practicing in Pakistan, rules and regulations and

1725different

procedures followed by banks, the organizational culture and structure of the bank,

1726National

Bank of Pakistan.

1727

325
326