CHAPTER#01

1. 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
Pakistandoesnothaveanyoffice.

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 Pakistans batter trade with
countriesandofStateBankofPakistanfortheGovernmentTreasury.

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 Internationalnetwork includes Branches at Bahrain,

Cairo, Paris, Frankfurt, Hong Kong, London, Washington D.C of shore
banking unit at export processing zone. Karachi and representative
officesfunctioningatBeijingandSeoul.

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
Programmedhelpsmallfarmertoobtainloansathisdoorstepsoneasy
termsandconditions.Ithasalsoplayedapioneeringroleinintroduction
ofprofitandlosssharingSystem(PLS)asamajortowardsIslamization
ofeconomy.

In addition to the normal business operations the bank

provides special loan facilities for higher education for studies abroad
and QarzeHasna to deserving poor students of Medical and
Engineering Colleges in Pakistan. The well equipped research
departmenttoworkonthecdevelopingtrednsoffinanceandbanking,
besidesaverywellmanagedlibraryattheHeadOffice.

Thebankscarryonitsbusinessthroughawidenetworkof
branches locally and internationally. These branches execute their
function under the supervision of local Regional Offices and regional
officesaresupervisedbytheHeadOfficelocatedamagnificentbuilding
intheheartofKarachiscenter.

In the forty five years that have followed the bank has
maderemarkableprogresstestifyingtoseveralthings.

It is now extending the operations of the Bank to all

branches to Banking, to commerce, to industry to trustee services as
wellastoagricultureandtotheneedofthesmallorbigbusinessman.

It has rapidly advanced from an institution with restricted

power to the biggest commercial banks in the country it also shows it
soundnessofthepoliciesthatthebankhaspursuedintheexecutionits
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

aspectsoftheNationallifeandallclassesofsociety.
Source:http://www.nbp.com.pak

2.

HISTORYANDMANAGEMENTOFN.B.P

Thestory of National Bankof Pakistanis partof Pakistans

struggleforeconomicindependence.

When, National Bank of Pakistan came into existence in

November 1949, the country was facing a severe economic crisis
originally,theintentionwastosetupthisBanksometimeinearly1950,
butthecriticalsituationthat developedinthe jute trade asa resultof
Indias refusal to accept the exchange rate of the Pakistan Rupee,
followingthe devaluationof itsown and thesterlingfunctioningDacca
andopenditsofficesatfiveimportantjutecentersnamelyNarayanganj,
Chandpur,RangpurandKhulna,intheEastPakistan.

The Bankadvamcedlargesumsofmoney to the agentsof

the newly established Jute Board and gave much needed help to the
market.Thecrisiswasaverted,thejutegrowersreceivedafairpricefor

theproduceandthecountryearnedtheforeignexchangeitwouldhave
otherwiselost.

Again, in 1950 following the outbreak of war in Korea,

Cotton prices shot up to unprecedented levels and the credit facilities
availableforfinancingthemovementofthecottoncropfellfarshortof
requirement.

TheNationalBankofPakistancameforwardtoestablishits
offices in the Cotton growing areas and extended credit facilities
liberallyinordertorestorestabilitytothemarket.In1951,thecountry
wasonceagainfacedwithacrisisinthecottontradewhenpriceswas
crashedandtouchedthelowestlevelsinceindependencefollowingthe
cessation of hostilities in Korea. The bank in collaboration with the
cotton board provided the necessary Credit facilities to the trade and
thecrisiswastidedover.
Source:http://www.nbp.com.pak

AnotherimportanteventintheearlyhistoryoftheNational
BankofPakistanwastakingovertheagencyworkoftheStateBankof
Pakistan in 1952, for transacting Government business and managing
currencychestsatplaceswhere.TheBankofPakistandidnothavean

office of its own. In 1962, the agency arrangement was extended for
furtherperiod.

Prior to nationalization, a Central Board of Director

governedthebankwhichconsistsofamanagingDirectorappointedby
theCentralGovernment,ninedirectorselectedbytheshareholdersand
thethreedirectorsappointedbytheCentralGovernment.ThePresident
oftheCentralBoardwasappointedbythecentralGovernmentamongst
theDirector.

Consequent upon nationalization, the Central Board

disclosed and in its pace an Executive Board consisting of president ,
who istheChiefExecutive and fourothermemberwere appointed for
Generaldirectionandsuperintendenceoftheaffairsandbusinessofthe
Bank.
Source:http://www.nbp.com.pak

The general direction and superintendence of the affairs

and business of the bank vests in this executive board. In 1980, the
Federal Government constituted a Board of Directors comprising the
president, five member of the Executive Board of the Bank one
nominee each of the Pakistan banking council and the ministry of

Finance. All nationalized commercial banks are controlled via the

PakistanBankingCouncil,beingtoStateBankofPakistanregulationsas
well.TheFederalMinistryresponsibleforBankoperationsistheMinistry
ofFinance.

3.

OBJECTIVESOFNATIONALBANKOFPAKISTAN

ThemainobjectiveofNationalBankofPakistanhasbeento
include and spread banking habits among the people mobilize their
savingsandthusmakeandeverincreasingcontributiontotheeconomic
development of the country. It has all along pursued a policy of rapid
developmentextending,itsfacilitiestoalmosteverycenterofeconomic
potentialinthecountry.Itsserviceshavebeenincreasingcontinuously
andarebeingbroughtwithinaneasyreachoftheevergrowingnumber
ofpeople.
Source:http://www.nbp.com.pak/

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

travelers cheque which are en cashable at a branch of the bank in

Pakistan.

1.

FUNCTIONSOFNATIONALBANKOFPAKISTAN

TheNationalBankofPakistanacommercialbankgenerally
makesadvancesforaperiodnotexceedingoneyear,exceptincaseof
small and medium industries for which advance may be made for a
maximum period of five years. The bank makes not only against the
securityofstocksandgoodshypothecatedorpledgedtothebank,but
alsoagainstdocumentsofgoodsandproperly,sharesarevariousjoint
stock companies, Government securities, Insurance policies deposits
receipts,etc.Themargin,andrateofinterestaredeterminedbyseveral
factorsincludingthetypeofsecuritythesizeofloanandtheintegrityof
theparty.
Source:http://www.nbp.com.pak

The Bank is authorized to carry on kinds of banking

business and is empowered to make loans. It has also undertaken
specialfinancingoperationsconnectedwithGovernmentpricessupport
scheme.Thebankalsogivesadvancesloans,especiallyforagricultural

products,suchascottonetc,Italsosafeguardsthevaluablearticlesof
people.ItalsoarrangestrainingprogramsforBankofficials.

It caters to the needs of the trade, industry & agriculture,

both in private & public sectors. It participates in procurement of
seasonalcropse.g.wheat,rice,cotton,sugarcane,etc.Italsoprovides
credit facilities tosmallindustrialunitsagriculturesectors as per credit
mandatorytargetsfixedbytheStatebankofPakistan.

PROPOSEOFSTUDY

The main & primary purpose of this study is to fulfill the

requisite requirements towards the completion of MBA (Hons) degree.
InthisconnectioneveryStudentisRequireundergoinganinternshipof
sixweeksinanybusinessorganizationinstitution.

The business internship report is carried on to be

familiarizing with actual working conditions in any organization by
physical&practicalparticipationinthebusinessaffairs.

For this, I went to the Regional & Head Office of National

BankofPakistan&writtenreport.

Secondly it is necessary for the Bachelor of Business

Administration that after acquiring through knowledge, we should
acquaint ourselves with the entire practical knowledge & experience,
whichwecanonlygainthroughvisitinganyOrganization&Conducting
adetailedstudy.

Thirdly,thepurposeofthisstudywastogaingoodamount
ofconfidence&tobecomeawareofthemechanismofNationalBank
ofPakistanbyworkingdealingwithofficialsoftheBank.

Finally, the purpose was to know how National Bank of

Pakistan plays its role significantly in the development of financial &
other industrial. There was an ample chance for us in this study for
learningaboutfinancingandBankingdevelopmentinPakistan.

2.

METHODSOFSTUDY.

For the preparation of this Internship report, I used two

methods to collect data, first primary data collection and second
secondarydatacollection.

In secondary data collectionI intervieweddifferentofficers

and officials. For this purpose, I paid many visits to National Bank of
PakistansRegionalOfficeHyderabad,NationalBankofPakistanFatima
JinnahRoadBranchHyderabad.

Inconductinterviewsfromheadofthedifferentdepartment
ofNBPandalltheinformationiscollectedsystematically.

For this purpose, I prepared the questioner and asked all

thedetailedfunctionandprocureoftheirdepartments.

Iinteriewedfollowingincharges.

1.

Mr.KauroKhanMemon

(AreaManger)

2.

Mr.GhulamMurtazaBaloch

(InchargeAdvances)

2.

Mr.NaeemAhmedShaikh

(InchargeF.E.Dept:)

3.

Mr.SaulatHussain

(InchargeAdmin)

5.

Mr.SohailAhmed

(InchargeInspection)

6.

AijazHussainRathore

(Export)

7.

JamshedAli

(Export).

All above officers have fully cooperated with me and

providedallthenecessaryinformation,whichwasrequiredtome.

I have collected all the information by using bothmethods

Primary & Secondary data. All the necessary and relevant information
was systematically collected arranged analyzed for writing this
internshipreport.

I am highly obliged to and thankful to all the above

Executive and personnel of National Bank of Pakistan, who have
providedallthe assistance and enablingme for thepreparation of this
report.

3.

LIMITAIONS

During the course of study, I faced many difficulties in

collectingtherecentandaccurateinformation.

There are number of constraints encountered by me.

Someofthemareasunder:

1.

TheBankfidnotallowmetoworkpracticallyinthebank,Iwas
onlyboundtoaskquestionstotheirinchargeofficer.

2.

Theygavemeverylimitedperiodoftimeperdayvisit,whichalso
causedsomedifficultiesinobtainingadequateinformation.

3.

Agoodamountofinformationrelatedtothebooksofaccount,
whichmaybebeneficialformewerenotprovided.

4.

Thebankofficialsbecauseofsecrecyofthebankmatersdidnot
answerthenumberofquestion.

5.

Thelowergradestaffwasnotproperlytrainedthereforethey
havebeenansweredaccurately.

6.

Majorityofstaffmemberhavenotgivefullattentionandthey
werenotinteresttoprovidemethefunctionalandotheroperation
details,exceptsomeofficerswhoprovidemefullassistance.

Insteadofallthesedifficulties,Ihavecompletedthiswork
duetofullcooperationandassistanceofearliermentionedofficers.

CHAPTER#02

INTERNALFEATURESOFNBP
MANAGEMENTANDORGANIZATIONALSTRUCTURE

MANAGEMENTANDHEADOFFICEMANAGEMENT

AmongsevenmemberofgroupChiefExecutiveiscalledthe
President.TheBankalsohasdirectorsforsuperintendenceanddirection
of its business. The members of board consists of President. Who is
Chief Executive and six other directors as members appointed by the
government.

The member of Board responsiblefor grantingloansinthe

field likes agriculture industry,housingandimport exporttradeand to
makethepolicyoftheBank.
Source:TheinformationaboutthischaptergivenbySoulatHussain(Admin.Manager)

OrganizationandHeadOfficeManagement

In the National Bank of Pakistans head office, there are

sixteen 16 separate division to deal with all the necessary problems
separately,onthetopofallthesedivisions.

Thedetailsaboutthesedivisionsareasunder

InternationalDivision.

Thisisagainsubdividedinto2divisions.

1.

ForeignExchangeandoperationdivision.

2.

AdministrationandCreditdivision.

An Executive Vice President also manager these divisions

separately. Finance and investment division (Economic Research &
CooperatePlanning)

A Senior Executive Vice President also manager these

divisionsandthissectioncontainstwodivisions.
3.

FinanceandInvestmentDivision.

Thisdivisionisfurthersegmentedintodifferentwingsanda
seniorvicepresidentlooksaftereverywing.

4.

(a)

Investment&resourceswing

(b)

Accounts,Planning&BudgetingWing

(c)

Govt:DebitManagementwing.

(d)

PublicityandPublicRelationWing

(e)

EditorialBoardQuamiBankerWing

(f)

ReconciliationWing

EconomicResearchandcorporatePlanningdivision.

This division does the work of economic research of the

country.ThisdivisionisalsomanagedbyanExecutiveVicePresident.

Administration, Computer and Human Resources Development

Division.

From thenameit is clearthatisconsistsofthree divisions

namely.

5.

AdministrationDivision
This division is also divided into Establishment Wing, Staff

Relation, Central unit fraud and forgery and regulation wing, Personal
WingandPersonnelcareerplanningwing.

6.

ComputerDivision.

The divisionconsistsof computerwingandEDP audit,and

procedureandadministrationwing.

7.

HumanResourcesDevelopmentDivision.

This division supervises all the staff colleges, at Karachi,

Islamabad,LahoreandPeshawar.

All the above division supervised and under controlled by

andcoordinatesunderaSeniorVicePresident.

8.

AuditandInspectionDivision.

Therearetwowingsworkingunderthisdivision,whichis.

(a)

ImplementationWing

(b)

RegionalAuditChief.

Thisdivisiondealwithauditinspectionofsubordinateoffices

LAW,RECOVERY,LITIGATIONDIVISION.

Therearetwodivisions,whichtakepartinthissection.

9.

LawDivision

10. Recovery&Litigation.
11. CustomerServiceDivision.
12. Engineering&MaintenanceDivision
13. BusinessPromotionandMarketingDivision.

CreditProcessing&MonitoringCorporateCreditDivision.
Twodivisionsarejointtogetherinthissectiontheyare.

14. Creditprocessing&MonitoringDivision.

Thisdivisionisdistributedaccordingtodifferentareas.

(a)

N.WF.P&A.KSindhBalochistanAreaWing.

(b)

KarachiAreaWing

(c)

SpecialCreditCellandPunjabAreaWing.

15. CorporateCreditDivision/CreditPolicyDivision.

This division segregated into two sections, to deal them

separately.

(a)

Coordinationsection.

(b)

AgricultureFinancingSection.

b).

FieldManagementandOrganization.

There are four executive to supervise the bank maters of

everyprovince,astheyarecalledprovincialschiefs.TheseProvincials
Chiefsare responsible for theentirebankingintheirprovincessuchas
income.expensesadvancesanddeposits.

TheRegionalChiefNBPBalochistan
RegionalChiefNBPPunjabn
RegionalChiefNBPSindh
RegionalChiefNBPN.W.F.P&AzadKashmir.

Theseprovincesareagaindividedintoregions,theregions
are controlled and management by regional heads, which are
responsibleforthesupervisionintheircirclesanddealwiththeproblem
zonesintheirjurisdictionofBranchesandStaff.

The country has been dividedm into 19 (nineteen regions)

byNBPtoficilitateitsfunctions.

SindhProvince
1.

KarachiRegionA

2.

KarachiRegionB

3.

MainBranchKarachiRegion

4.

HyderabadRegion

5.

SukkurRegion.

NWFPProvince.

6.

PeshawarRegion

7.

AbbotabadRegion

AzadKashmir

8.

MuzaffarabadA.K.Region

BalochistanProvince
9.

QuettaRegion.

PunjabProvince

10. LahoreRegionA
11. LahoreRegionB
12. MainBranchLahoreRegionC
13. BahawalpurRegion
14. GujranwalaRegion
15. SialkotRegion
16. FaislabadRegion
17. MultanRegion
18. RawalpindiRegion
19. IslamabadRegion.

These regions are also subdivided into zones . The

inchargeofzoneiscalledZonalChief.

ORGANIZATIONALSTRUCTURE.

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

Source:SoulatHussain(AdministrationManager)

DEPARTMENTFUNCTIONINGUNDERN.B.P

NBP has seven main departments for functioning of which

wholefunctionofbankisdependedorwecaneasythatallservicesare
renderedthroughthesesevendepartments.

Thesedepartment are esplainedwiththeirheadings are as

under

a).

ADVANCEDEPARTMENT

Advancedepartmentreceivestheapplicationfromintending
borrowers and submits the same application to the higher authority
afterprocessingforapprovaltheadvancescanbeoffollowingnature.
Source:Mr.GhulamMurtazaBaloch,InchargeAdmn:Deptt:(OGI)
Source:ShafqatAliMahesar(OGIII)
Source:Mr.KhadimAlilundBaloch(OGIII)
Source:SaeedAhmedKhan

b).

a.

Agricultureadvancetofarmers

b.

Shorttermsadvancetobusinessman

c.

Longtermadvanceforsettingindustry

d.

Mediumtermadvanceforworkingcapital

e.

SeasonaladvancetocottongingersRiceandsugar mills.

REMITTANCEDEPARTMENT
Bank promotes the facility of remitting funds within the

country and outside country within certain limits, Usually money

remittedthroughDemandDraft,TelegraphicandSWIFTtransfer.
Always two parties are involved in this function one is
receiverandanotherissender.
c).

ACCOUNTSDEPARTMENT
Accounts Department maintains the fixed deposits receipts

of the depositor. Account department also keep income and expenses

accounts.Accountdepartmentpreparestheweeklyanddailystatement
oftheaffairsofthebrancharefirstlikeabalancesheet.
Source:AltafAhmed(OGIII)

d).

FOREIGNEXCHANGEDEPARTMENT.

1). Imports
Wesellourforeignexchangetotheothercountrywhichis
calledsuchaswepurchasetheforeigngoodsfromtheothers.Importis
donethroughletterofcredit(L/C)bytheimporter.LetterofCreditisan
undertakinggivenbytheimporterbanktotheexportersbank.
2). Export
Export is to sell our goods to the other country and earn
foreign exchange. The bank provide facilities of exporting the
commoditiestothemanufacturesofthegoodsofthecountry.
3). ForeignRemittance.
The bank provides the foreign remittance facilities to the
student studying aboard. Bank also provides foreign exchange in the
shapeoftravelerschequestotheintendingvisitors.

Source:SyedQamarHashmi(Assistant)
Source:AijazAliRathore,(OGIII)
Source:MissRazia(OGIII)

e).

CLEARINGHOUSEDEPARTMENT

The function of Clearing House department is to pass the

chequepresentedbyone branch of the bank tootherbranchesofthe
banks.Clearing house is usuallyset uponthe bigcitiesandis control
bytheStateBankofPakistan.

f).

CASHDEPARTMENT

Cash department is backbone of the branch., Cash

department receives thecashfrom depositorsandmakesthepayment
tothechequeholder.

g).

MARKETING/BUSINESSDEVELOPMENTDEPARTMENT

Marketing Department is set up in thebig branches in the

commercial banks. Generally the main functions of the marketing
departmentareasunder.
a).

Tointroduceavaluedclient/depositorstothebankbranch.

b).

Tobringavaluablebusinessforthebranch.

c).

Toprovide the financial facilitiesto the sound position fromthe

bankspointofview.

d)

Marketing, department plays very vital role in increasing the

savingsofthebank.

e).

Thedevelopmentofthebranchdependsuponeffectivemarketing
system.

f).

Marketing department introduce institution among the persons.

Generally the manager of the branch deals himself in the marketing

function.
Source:RafiqueArbaba(OGII)
Source:SyedShahNawaz(Assistant)
Source:MoinuddinMuallian(OGIII)
Source:MohammadAtiqKhan(OGI)
Source:VariousBankinformationcirculars.No&DateN/A

CHAPTER#03
ACTIVITIESOFNATIONALBANKOFPAKISTAN

1.

COMPUTERIZATION

With a view to up grading and streamlining the working

system of NBP and procedure plans were under taking by the
management to provide microcomputer and electronic ledger. Cards
machines to the larger branches of a bank. This program will also be
expended to theother smaller branches in coming years. Utilizationof
the banks mainframe computer at Head Office, which happens to be
the most sophisticated amongst all the banks in Pakistan is also
progressingtofurtherupgradethecapacityofNBPincomingyear.

2.

DECENTRALIZATION

Under the direction of the government, operation of all

nationalized commercial banks were significantly centralized by setting
up provincial head quarter at Karachi, Lahore, Peshawer and Quetta,
eachheadedbyamemberofexecutiveboard,enjoyingvastpower.

Thebankspolicyofdecentralizationoffinancialsanctioning
authority by delegation of powers to Regional and circle officers and
creditcommittee,resultedinimprovingefficiencyandpromptattention
to the need of the customers on a country vide basic. Decisions had
beenquickerandservicetoclientmorerapidlyandeffectivelyavailable
asaresulttothispolicy.

Thisscheme,whichhasbeenwellreceivedbythebusiness
communityandthevariouschamberswillbebeneficialinquickdisposal
of credit facilities all provincial level and will also help in solving the
problem and grievances of the customers more effectively. Service to
clientswillalsobeimproved.

Source:VariousNBPinformationcircularsNo:anddatenotavailable

3.

FOREIGNTRADEANDOPERATION

National Bank of Pakistan playedanavtive role in handling

thecountriesexportandimports.

The growth of international business operations depends

causally and expansion of foreign contacts. The bank already has 22
overseasbranchesinimportantbusinesslocatedareasoftheworld.The
NBP also looking forward to open some new branches in foreign
countries.

Errors are also under way to strengthen out relationship

withbanksincentralAsiaandtoestablishjointventureswiththebank
ofthatareapoliticalandfinancialstabilityisrestore.Nationalbankwill
trytoestablishbranchesthere.

PROGRESSINISLAMIZATIONOFBANKING

Aftertheintroductionofprofitandlosssharingschemeona
limited scale in January 1981. The Federal Government in 1984
announcedamajorpolicydecisionthatbytheendofJune301985all

the domestic operated banks and financial institutions will be on NIB

system.Thisobjectivehasbeenachievedfrom1st July1985allbanking
operations have been switched over to NIB system. In the final stage
fromJuly1,1984savingdepositshavebeenconvertonprofitandloss
sharing basis from this date on words the bank is not accepting fixed
perioddepositsoninterestbasis.

Itshouldnotbeconsideredtheendofthemissionasmush
more remains to be achieved . Until June 1985, none interest basis
investment opportunities were more, while NIB liabilities were
comparatively less. But now after complete switch over the reverse in
the reverse in the position. But further continuous research and
dedicated efforts are necessary art national level so that Pakistan may
present,beforetheworldasystemwhichisreallynew,dynamicandin
accordance.

Source:SoulatHussain(Admin.Manager)

CHAPTER#04
TRAININGANDFACILITIESTOSTAFF

1.

TRAININGTOSTAFF

In 1949, the first year of operations the NBP has one

hundred employees one its payroll but with in two years this number
had grown to 1505 by 1960 the figure has risen to 5023 and now in
1996itistheorderor20694.

During the first ten years the NBP trained its own staff
through a series of training programme both for junior officers and
clerical staff. By 1958 how ever it was obvious that one thins more
comprehensive was needed and the bank established a staff college
Karachi.ThreemotecollegesatIslamabad,LahoreandPeshawar,setup
later. These colleges provide course of instructions, supervisor
personnelandclerkstomeettheBanksevergrowingtrainedpersonnel.
This needs springs not only from the steady grown for the banks
business but also to replace wastage due to retirement resignation, ill
healthordeath.

The staff college receives junior bank officers for further

traininginbankingthecourselastingfromsixtonineweekswithabout
twentyfivestudentsineachcourse.

The staff college course are designed not only to impart

technicalinstruction,butalsodevelopqualitiesofjudgementsdecisions,
leadershipandmanagement,sincethesestudentarelikelytobethose
menwhomayexpecttotheseniorsmostexecutivepositionsthebank
hastooffer.

The bank also deputes officers to attend banking seminar

both in Pakistan and abroad and it attaches great importance to the
exchangeofideasinformationandknowledgewhichcanmostusefully
accurefromthesegatherings.

In its position the National Bank has considerable

responsibility in ensuring that the country is well represented at
meetingsofbankersatdomesticandinternationallevel.

SALARIESANDFACILITIESTOSTAFF

As an employer NBP is also deeply conscious of as

responsibilitiesandactitbesaidthatattheoutset,consideritsselfa
good employer. Its seales of pay terms of services, staff benefits and
amenities compare very well with instruction of similar stature in
Pakistan.

Theresultisthatemploymentwiththebankhascometobe
regarded as some thing of prize. The scale of pay and allowances for
officers and staff are revised from time to time as need grows. In
addition employment with bank personable and bonuses are regularly
paid.

The bank provides free medical treatment for all its

employers, their families and dependent parents. A senior member of
themedicalprofessionactsasMedicalAdvisorandmedicalconsultant.
Source:Mr.NomanAhmed
Source:Mr.KhadimAliBaloch

The bank pays school fees for the children of all the
supervisory,electricalandsubordinatestaffandthisfacilityisextended
tocollegefeesalso.

To meet the problem of fining suitable residential

accommodation in the hig cities. NBP has had recourse to several
measures in Karachi and Lahorefor instance the bankhas constructed
residentialquarters.NBPhasgrantedloansoneasytermstomembers
ofstafftoenablethemtoconstructhousesoftheirown.

Tosolvetheproblemsofconveyanceforitsemployeesthe
bankmakesadvancestostaffforthepurchaseofcarsmotorcyclesand
cycles.

The bank has provided finance for the establishment of

sportsclubsandstaffrecreationcenters,toenablestaffsportclubsand
othersuitablerecreationalactivitiestoflourish.Cooperativestoresand
subsidizedcanteenshelpthelowerpaidcategoriestogetthebestvalue
formtheircarnings.

CHAPTER#05
FEATURESOFDIFFERENTTYPESOFACCOUNTSBE
OPERATEDBYNATIONALBANKOFPAKISTAN

Thebankacceptsthefollowingtypesofdeposits.

1.

Currentdeposits

2.

PLSSavingdeposits

3.

Fixeddepositsaccount(TimeDeposit)

4.

ForeignCurrencyAccount

1.

CURRENTDEPOSIT

Forcurrentdeposits NBPopentheaccountinthe nameof

individualproprietaryfirms, partnershipfirm, privatelimitedcompanies
clubs, association societies and other institutions. The account can be
operatedbysingleortwomorepersonsjointlyastheinstructionsmay
begivenatthetimeofopeningtheaccount.

If the person who wants to open the account is not in

position tosign orsignature isnot firm orshaky the bank requires is
photographsandhehastocomeinthebankatthetimeofwithdrawals
ofhisdeposits.

The initialamount of deposits with which he can open the

accountusualnotbelessthenRs.1000/

But his restriction is not imposed to the accounts of

charitable institutions and the account opened in the month of closing
i.e.June&December.

Source:perveizalikhawaja(OGIII)

2.

PLSSAVINGACCOUNTS

The silent features or profit and loss sharing saving

accountstobeopenedinNBPasunder.

1.

These accounts can be opened by individuals in their own

singlearejointname.ThePLSsavingaccountscanalsobe

opened for provident fund or other benevolent funds of

companies, firms, organizations of welfare and educational
institutions.

2.

PLS saving account can be opened with an minimum

amountofRs.500/only

3.

Money can be with drawn form PLS saving account only

throughcheque.

4.

ToshareintheprofitaminimumbalanceofRs.500/must
be maintained a account. The minimum balanced on sixth
andlastofmonthwillqualifyfortheprofits.

5.

The profit will be calculated on the basis of monthly

minimum balance for the period of six months i.e. from
JanuarytoJuneandJulytoDecember

6.

TheheadofficeofNBPdeterminestheprofitsorlossonPLS
savingdepositsandadviceitsbranchestherateandtimeof
distributionoftheseprofitsconcernedPLSsavingaccount.

7.

With drawls from PLS saving accounts are allowed not

oftener then 8 time in a calancer month and for a total
amount notexceedingRs.1500/for withdrawalofa large
amount seven days not in writing is required to be given.
Thisnoticeshallnothoweveraffectthemonthlywithdraw
ordinarily allowed. In the even of contravention of rule.
depsositorsshallforfeithisrighttoshareprofitforhenotice
period shall be deducted from his total profit earning
products.

8.

The shall be no restrictions on maintaining the maximum

balanceinPLSsavingaccount.

9.

On the fist of Ramzan every year the Zakat 2.5% will be

recoveredfromthedepositsonthebalanceofthatday.But
if depositors give declaration of Zakator he is nonmulsim
noZakatwillberecoveredfromhiminthesamedayZakat
is not recovered from account in which the balance are
belowuptoprescribedlimitasdeclaredbytheadministrator

ofZakatPakistanActsystemofacceptingdepositshasbeen
statedinNBPsince01011981.

Source:Mr.NisarAhmedQazi(OGIII)
Source:Mr.ImtiazAhmed(OGIII)

PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED

DEPOSITA/C

In the case of fixed deposit account deposit is made for a

fixed period and a money deposited can be with drawn before the
expire of period fixedor before giving an advance notice to the Bank.
Fixeddepositcariesahigherrateofinterestthantheothertypeofbank
accountandtherateofinterestriseswiththelengthoftheperiodand
theamountofdeposit.

Oneopeningafixeddepositaccountthebankgrantstothe
depositor a fix deposit (FDR) which is not transferable to any other
person. When the depositor with drawn the receipt must be handed
backtothebank.

The silent features of profit and loss sharing term deposit

exceptedbyNBParegivenasunder.

1.

The PLS term deposit are excepted from individual in their own
singleorjointnames,companiesfirmsandotherorganization.

2.

ThePLStermdepositreceiptareissuedforanyamount.Thereis
minimum or maximum limit or deposits in a single term deposit
account.

3.

Thetermdepositcanbemadebytenderingcashonly.

4.

PLS terms depositors may be allowed some facilities against the

security of these receipt credits, after making Lien on the
relevantreceiptandsubjecttorecoveryofaservicecharge.

5.

Underterm depositschemethe depositorsnotceasetoearnthe

profit immediately, after the respective maturity date, but they
have been afford a liberal facility. In case the depositors said to
withdrawtheirtermsdepositsonmaturitytheirfundswillremain
temporarily in used and on profit earned a responsible share
would occur to such over due PLS terms deposits at the rates
declaredonPLSsharingaccount.

6.

The head office of the bank determine the profit or loss on PLS
terms deposit at by any one intervals i.e. the end of June and
Decembereachyearandpaymentofprofittoordeductionofloss
ifanyfromthePLStermsdepositistobemadethedepositsfor

longer period will earn a little more profit then those of shorter
perioddeposits.
7.

ThetotalprofituptoRs.950/isexemptedfromincometax

8.

Inthecaseofencashmentbeforematuritybutaftercompletion
of months profit will be paid for the entire period for which the
deposit remained with bank at the rates payable for the
respectiveperiodtothePLSsavingaccountafterdeductionofthe
Zakatifany.

9.

In PLS term deposit expired and the depositors request with in

onemonthaftertheexpiringdate,forinvestment.ThePLSterms
deposit will be reinvested for the desire period from the date
immediatelyfollowingexpiringdate.

10. ZakatorthefacevaluePLStermdepositwillberecoverdasmay
time as the valuation dates (i.e Ist Ramzan) falls between the
dateofissueandthedateofexpiryofthedeposit.
Source:AbdulHameedBhutto(OGIII)

FOREIGNCURRENCYACCOUNT.

NBP has also introduced foreign currency accounts for

Pakistan and foreign Nation in Pakistan and abroad. This scheme
assuresitscustomersonbetterprofitandsuperiorservice.

1.

It offers Pakistani or foreign National to operate a foreign

currencyA/Cwithanyoneoftheirauthorizedbranchesspreadall
overthecountry.

2.

Deposits of this accounts will be acceptable in all convertible

currencybutaccountwillbemaintainedonthecustomerschoice
inUSDDollar,poundsGermanMarkorJapaneseYen.

3.

Deposits may be made in the forms of remittances in foreign

currencies.

Travelerschequeonthebankcounterwillbeaccepted.

4.

Thecustomercanmakewithdrawlsandtransferstoanywherein
theworld.

5.

All the depositsand profitsinthecustomersforeignaccountare

exceptfromZakatincomeorwealthtax.

6.

The customers sources are protected from any scruitny of

concernedauthorities.

The NBP has over 1400 branches at home and abroad of

thesemorethan100branchesareauthorizedandfullyequippedtodeal
withallkindsofforeigncurrencytransactions.
NBP has worldwide network of branches and it has
associated in Arabia bank, All Jazria (26 branches) and national
exchangecompanyinUAEtofacilitatethecustomersinPakistan,Saudi
ArabiaandUAE.
Source:AttaHussainRajpar(OGIII)

FUTUREOUTLOOKOFNATIONALBANK.

NBPisfully awareof the developments takingplaceinthe

worldaswellasthechangesoccurintheeconomicandsocialcondition
withinthecountry.Thebankisdeterminedtomeetnewchallengesby
redefining its goals and strategy as well as by the adjustment of its
operationalpolicies.

The Bank planning to institute major improvements,

especiallyincustomerservicelaunchinnovativeproductstoensurethat
the bank continues to play a dynamic role in the development of the
country.

CONCLUSIONS
At the completion of the business internship the

interencedrawsthefollowing:
1.

Itappearsalengthyprocessofsanctioningadvance.

2.

Itlooksthestaffmemberarenotproperlytrained

3.

Itseemsthepromotionarenotgivenintheduetime.

4.

It appears that large amounts paid on administration

cost.

5.

Itshowsthatthereislackofrecoverysystem

6.

Itseemsthatthereisnonetworking.

7.

It seems that there shall be a great the rush days for

the customers as well as for the staff members If the
Noofcounterarelimitedorveryfew

8.

Itmightnotbepossibleforeveryborrowertorepaythe
moneyinduetime.

SUGESTIONS

On the basis of conclusion interence draws the following

suggestions

Itissuggestionthattheprocessshouldbeshortinorderinsave
timemoneyenergyandstationaryetc.

It is proposed that proper training be perovided to the staff

members that will ultimately increase the performance of Bank
overall.

It is advised that promotion be given in due time because of

interesttoworksatisfactory.

Itisconsultedthatbankshouldreduceitslargeexpensesinorder
toincreasethevalueofbank.

It issuggested thatreasonablestepsshouldbetaken torecover

allabsoluteadvances.

The NBL should introduce the use of computers in order to

confront with the nectic business activities. it will also help to
reducetheextraloadofmanualwork.

Extra countersshouldbebroughtinordertofacilitateduringthe
rush days the difficulties faced by the bank staff as well as the
customers.

Theperiodofrepaymentoftheloansshouldbeextended.

REFERENCES

1. ByGreenerMichael

ThePenguineBusinessDictionary
Edition1995PageNo.10

2. ByMuhammadRauf
Beg

MoneyandBanking2nd Edition1993
PageNo.55.

3. ByMukhtiarAhmed

IntroductiontoMoneyandBankingIst
Edition1995PageNo.60

4. ByIsrarulHaq

BankingLawandPractice

5. ByDr.SyedAnwarAli

BankingIstEditionPageNo.02

6. Annual Report of NBP

2000

INFORMEDBY

1.

HistoryofNationalBankofPakistan,2006by:(N.B.PManagement
Division)

2.

perviezAliKhawaja(ManagerAdmin)

3.

http://www.nbp.com.pak

4.

Mr.GhulamMurtazaBaloch,InchargeAdmn:Deptt:(OGI)

5.

ShafqatAliMahesar(OGIII)

6.

Mr.KhadimAlilundBaloch(OGIII)

7.

SaeedAhmedKhan

8.

AltafAhmed(OGIII)

9.

SyedQamarHashmi(Assistant)

10. AijazAliRathore,(OGIII)
11. MissRazia(OGIII)
12. RafiqueArbaba(OGII)
13. SyedShahNawaz(Assistant)
14. MoinuddinMuallian(OGIII)
15. MohammadAtiqKhan(OGI)
16. VariousBankinformationcirculars.No&DateN/A
17. VariousNBPinformationcircularsNoanddatenotavailable
18. IslamizationaofBanking
19. Mr.NomanAhmed
20. Mr.KhadimAliBaloch
21. WaqarullahKhan(OGIII)
22. Mr.NisarAhmedQazi(OGIII)
23. Mr.ImtiazAhmed(OGIII)
24. AbdulHameedBhutto(OGIII)
25. AttaHussainRajpar(OGIII)

CONTENTS
CHAPTERNO.1
INTRODUCTION

1.

Introduction

01

2.

History&ManagementofNationalBankofPakistan

04

3.

ObjectiveofNationalBankofPakistan

07

4.

FunctionsofNationalBankofPakistan

08

5.

PurposeofStudy

09

6.

Methodsofstudy

11

7.

Limitation.

13

CHAPTERNO.2
INTERNATIONALFEATURESOFNATIONALBANKOFPAKISTAN

1.

InternationalFeaturesofNationalBankofPakistan

15

2.

LawRecovery,LitigationsDivision19

3.

OrganizationalStructure

4.

DepartmentsFunctioningunderNationalBankofPakistan 25

24

CHAPTERNO.3
ACTIVITIESOFNATIONALBANKOFPAKISTAN
1.

Computerization

30

2.

Decentralization

30

3.

ForeignTrade&Operation

32

CHAPTERNO.4
TRAININGANDFACILITESOFSTAFF
1.

TrainingtoStaff

34

2.

Salaries&Facilitiesofstaff

36

CHAPTERNO.05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE
OPERATEDBYNATIONALBANKOFPAKISTAN.

1.

CurrentDeposit

38

2.

PLSSavingAccount

39

3.

PLSTermdepositReceipt(PLSTDRS)ORFixedDepositAccount
42

4.

ForeignCurrencyAccount

47

5.

FutureoutlookofNationalBankPakistan

49

CONCLUSIONANDSUGGESTIONS

1.

Conclusion

50

2.

Suggestions

51

3.

References

52

INSTITUTE OF BUSINESS ADMINISTRATION

UNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE
This is to certify that Business Internship Report on NATIONAL
BANKof Pakistan,hasbeenprepared
SANTOSHKUMARS/ODAYALDAS
UndermyguidanceforthepartialrequirementforthedegreeofMasterof
BusinessAdministration.Itisalsocertifiedthattheworkisfoundoriginal
and the research has been inetienlously carried out and fulfils all the
requisiteconditions.

Sir.ASLAMPATHAN
AssistantProfessor&
InternshipGuide
IBA,UniversityofSindh,
Jamshoro

Dr.AnwarAliShahG.Syed
Professor&DEAN
IBA,UniversityofSindh
Jamshoro

DEDICATION

Thishumbleeffort
isdedicated
tomybeloved
parents,
whoseloveand
efforts
canneverbe
forgotten.

ACKNOWLEDGEMENT

Praise to Almighty Allah, the omnipresent, the Omnipotent, the

Omniscient, who bestowed upon me the potentially and ability to
accomplishthiswork.
No sequence of works can express my sincere gratitude to our
respected Professor and Director, Institute of Business Administration
Dr.AnwarAliShah,G.SyedandguideMr.PerveizAlikhawajawithout
whose valuable guidance, rich experiences, helpful advice, useful
suggestionsandconstructivecriticismandcomments.Icouldnothave
beenabletocompletethispieceofworktitledasBusinessinternship.
Ihavehonourtoexperessmyheartfullgratitudetotheexecutive
and staff member of National Bank of Pakistan, Market Branch
Hyderabad, who kindly gave them acceptance to the topic of my
Internship Report along with many useful suggestions which
encouragedmetocompletemywork.
Thanksforallthosewhoextendtheircooperationforconducting
theworkofBusinessInternship

SANTOSHKUMAR
MBA(PASS)FINAL2006
InstituteofBusinessAdministration
UniversityofSindhJamshoro