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Table Of Contents
Page #
Introduction
HISTORY 01
INCORPORATION 02
GEOGRAPHICAL LOCATION 02
VISION STATEMENT 03
MISSION STATEMENT 04
OPERATIONS AND FUNCTIONS 05
Organogram of the Departments 06
Departments
OPERATION DEPARTMENT
07
HUMAN RESOURCE DEPARTMENT
12
COMPLIANCE DEPARTMENT
13
CREDIT ADMINISTRATION DEPARTMENT
14
FOREIGN EXCHANGE DEPARTMENT 16
Products
NBP PREMIUM AAMDANI 18
NBP PREMIUM SAVER 19
KAROBAR 20
NBP SAIBAN 28
NBP ADVANCE SALARY 32
NBP CASH CARD 34
NBP INVESTOR ADVANTAGE 35
NBP GOLD’N CASH 37
NBP KISAN TAQAT 38
NBP KISAN DOST 39
Swot Analysis 40
Deposit Policies 42
Lending Policies 46
Financial Highlights 54
Last Six Year Performance 57
Comments On Overall Performance 58
Customer Analysis 60
Comments 66
Findings 69
Dedicated
To my Parents
For Their
Encouragement & Love
Introduction
History
NBP is the largest commercial bank in the Pakistan and was established
under the National Bank of Pakistan Ordinance on November 8, 1949 in
Pakistan. It was established in crisis conditions following the deadlock
with India. The original intention was to setup it sometime in 1950. The
plans for its establishment had to be advanced in view of the critical
situation, which developed especially in the jute trade as a result of India’s
refusal to accept the exchange rate of Pakistan’s rupee. It played a
notable role in financing the jute trade in collaboration with the Jute Board
so that crisis was eventually overcome. The timely opening of the bank
branches enabled the jute growers in East Pakistan to obtain a fair price
of their products and helped the country in maintaining its foreign
exchange earnings from raw jute. Later on, it established its office in West
Pakistan to help and finance the cotton crop.
The national bank of Pakistan took over the agency work of the State
Bank of Pakistan in 1952 for transacting Government business and
managing currency chests at places where the State Bank of Pakistan
does not has an office of its own. The National Bank of Pakistan in view of
its relationships with the Government and as agent of the State Bank of
Pakistan holds unique position among commercial banks in Pakistan. For
example, for years it had a monopoly in Government and Semi-
Government deposits. This is both a privilege and a responsibility. On the
one hand, the bank is given special support and assistance and on the
other, it is also expected to serve as an instrument for the promotion of
national objectives and policies. It also undertakes Government Treasury
operations. National Bank of Pakistan maintains its position as Pakistan’s
premier Bank determined to set higher standards of achievements. It is
the major business partner for the Government of Pakistan with the
special emphasis on fostering Pakistan’s economic growth through
aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of 1406 branches
locally, 24 branches internationally and representative offices.
Incorporation Date
The Civil Line Branch was incorporated in 1949. It is the main branch of
Faisalabad District. National Bank Of Pakistan has 43 branches in
Faisalabad. All braches are located in different areas of the cities to serve
the nation. Because it is said that the NBP is the “nation’s Bank”
Geographical Location
Vision Statement
Mission Statement
To be recognized in the market place by Institutionalizing a merit &
performance culture, Creating a powerful & distinctive brand identity,
Achieving top-tier financial performance, and Adopting & living out our
core values.
Core Values
We aim to be an organization that is founded on…
The main operations and Functions that are performed by the NBP Are as
follows:
Remittances
Demand Draft
If you are looking for a safe, speedy and reliable way to transfer money,
you can now purchase NBP’s Demand Drafts at very reasonable rates.
Any person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch.
It is a bill either on demand or otherwise by one bank on another in favour
of third party or by one branch of the same bank or by the head office on
the branch or otherwise.
Mail Transfer
Move your money safely and quickly using NBP Mail Transfer service.
And we also offer the most competitive rates in the market.
The money will be transferred to the other branch either locally or not
through mail.
If the customer is the account holder then his account will be debited, if
not then he will have to make the cash payment at the Cash counter and
the receipt will be presented to the MT issuer officer. The following forms
will be used for this purpose
1. Branch mil transfer form
2. Receiving Branch registered Copy
3. Issuing Branch Registered Copy
4. Debt Voucher
5. Beneficiary’s Advice
6. Advice to customer
Pay Order
NBP provides another reason to transfer your money using our facilities.
Our pay orders are a secure and easy way to move your money from one
place to another. And, as usual, our charges for this service are
extremely competitive.
Telegraphic Transfer
It is the most efficient way t transfer the money from one place to another
on one phone call only. It is an application form provided to the customer
in which he has to specify the name of the payee, the place of the transfer
and the amount.
After filling of the voucher the client will make the payment and get the
stamp of Cash paid by the Cash Officer And then Authorized person will
make tests on the receipt. The tests are the secret codes that are not
understandable to any unauthorized person.
After making the call the tested messages will be delivered to the other
branch officer who will complete the transaction.
Cash Department
The deptartment that Deals with the payment and receipt of the Cash or
we can simply say that it is the deptt. that is involved in the cash
management . Being the main branch there are two types of cash
involved.
Local Cash
The cash that is involved in the same branch for payment of the dues or
for any requirement of the branch
Chest Cash
The payment and receipt of the cash from all other branches of the same
city.
Local Cash
At the close of the day these books are balanced with each other. When
the cheque of negotiable instrument is presented at the counter for
payment, Token is used to the customer. After consulation the token and
the instrument is presented to the cashier for payment. The cashier
makes entry in the paying cashier book and payment is made to the
The counter for the collection of utilitity bills also play a great role in the
general banking setup. The NBP collects all type of bills on behalf of the
concerned organizations for a pre agreed fee.
Clearing
The department that is responsible for the clearing of the cheques that
are drawn on the other banks or the cheques that have been drawn on
the NBP.In the past it was a more complicated process, because SBP
was the custodian so it had to make the arrangements for the clearance
of cheques that have been drawn on the others. So a person representing
his or her bank had to go to SBP for the Clearance of these cheques
which was a time consuming method and it was taking at least 4 to 5 days
for the clearance.
Now the SBP has made the thing so easy for all the banks by making a
contract to a privatized insitution”NIFT”. Now all the clearing is being done
through the NIFT against a Fee that is Rs.2.5 for every cheque that has
get cleared.
The cheques that are collected and paid by the same branch of the bank
The cheques that are collected and paid by two different branches of a
bank situated in the same city.
c)Clearing Cheques
When the endorsee (the person who deposit the cheque for collection)
and the the person on whom the cheque has been drawn are the account
holders of two different banks then these type of cheques can be get
cleared through the NIFT.
COMPLIANCE DEPARTMENT
The department that deals with the Audit/Checking and inspection is known
as the Compliance deptt. The department is being run under the supervision
of the COMPLIANE OFFICER.
Loan Booking
• Introduction
• Funds requirement
• Nature of Utilization
• Nature of Business
• Financial position
• Character
• Security
Documentation (Pre-Sanction)
• Information about business
• Persoanl data
• Security Valuation
• Security Documents
• Encumbrance
• BLA Report (Bench Legal Advisor)
• Loan History (CIB Report)
• Loan Application Form
Analysis
• Financial Analysis
• Sector Analysis
• Product Analysis
• Political Factors
• Industry Analysis
Securitization
The complete process is made for the security that is being used for
the approval of loan. The securities may be of the following types:
• Personal Guarantee
• Personal Guarantee + Hypothecation
• Pledge
• Mortgage
• Charge/Lien on the Current Asset
Approval Document
Sanction Advice
Then the terms and conditions are advised with the approval document.
Disbursement of Loan
Then the loan is disbursed to the party after the completion of all the above stated
requirements.
Monitoring
The monitoring involves all the steps that will be taken for the maintenance of the
advances of the customers. The officers will determine that either the person is
paying the installments or not. In case of short tern loans the time period will
short and the customer should be in a position to payback the loan.
Collection
This sub head is involved in the collection of all the payments and advance if the
time period is finished.
Recovery
In case of default by the customer, the recovery process will be on. During
recovery all legal actions will be taken against the customers regarding payment
of the loans.
Foreign Exchange
Foreign Exchange means expression of value of local currency when
exchanged in terms of currencies of other nations. The Foreign Exchange
Department of NBP is the most competent department and is contributing
a lot in the overall performance of the Branch.
IMPORTS
The import deals primarily with the letter of Credit, Contract and the
Advance payment.
An Lc is a familiar instrument in setting trade between buyer and seller
located in different countries for the purchase and sale of goods. It is
usually a guarantee by the bank for the payment of the goods delivered
by the exporter to the importer.
The third way is the advance payment that will be made to the exporter
either full or partial depending upon the nature of the transaction.
Exports
Documents to be Forwarded
• Bill of Exchange
• Commercial Invoice
• Transpotation Documents e.g Air way bill or bill of lading
• Packing List
• Other specific Documents
REMITTANCES
The process of receiving the payment from the other countries and paying
to the people in Pak Rupees is called the remittances.
The payment is received through “SWIFT” and the popular ways used for
the remittances are:
• Telegraphic Transfer
• Mail Transfer
• Demand Draft
PRODUCTS
NBP Premium Aamdani (Monthly Income Scheme)
Eligibility Criteria:
1 year 7.50%
2 year 8.50%
3 year 9.50%
4 year 10.50%
5 year 11.00%
Earn up to 11% p.a.†
Profit rates are expected
*Certain conditions apply
Premature encashment will result in lower rates of return
Expected rates are for the given year
If you are aged between 18 and 40 years, you could be eligible for easy
financing for self employment in the categories below
Karobar Details:
1 year KIBOR + 2% (For the first year mark-up will be 12%) The customer
will pay markup @ 6%p.a as long as GOP provides the balance markup
to NBP on a monthly basis)
Eligibility Criteria
Security
Eligibility Criteria:
Security
Security:
Eligibility Criteria
Security:
Eligibility Criteria:
Security
Eligibility Criteria
Security
Repayment
NBP Saibaan
Under the scheme of NBP Saibaan following types of products to the
customers. His scheme is launched especially for the people those who
want to have loan for the construction, renovation or purchase of land.
Product Items:
Home Finance
Home Construction
Balance Transfer Facility (BTF)
Home Renovation
Purchase of Land + Construction
Home Construction
Financing Amount Up to 35 Million
Financing Period 3 to 20 Years
Debt to Equity 85:15 (Maximum)
Home Renovation
If you have a Home Finance Facility outstanding with another bank you can have
it transferred to NBP through a hassle-free process.
All home financing facilities below Rs. 15 M Debt to Equity Ratio will be 85:15
& for Rs. 15 M and above Debt to Equity Ratio will be 80:20.
*50% of the loan will be disbursed at the time of land purchase and rest of the
50% for its construction will be disbursed in 4 tranches.
Eligibility
Service duration: Two years for salaried class Three years for self-
employed/business class.
Charges
Mark Up Rates **
Variable Rate Option: SBP Discount Rate with (+2%) with12 months re-
pricing
Processing Fee
Government Employees:
Other Charges **
Income Estimation, Legal and valuation fee will be charged as per actual
Required Documents
AND
Any other document may be required on case to case basis by the bank
To identify a merchant outlet that welcomes your card, just look for the
NBP or Orix Logo. To make a payment give your NBP Cash Card to the
merchant. The merchant will swipe your card on the POS (Point Of Sale)
machine and the purchase amount will be entered. Enter your digital ATM
Pin for verification (this is the same as your cash withdrawal pin). After
Approval a transaction slip will be provided. Collect your card and slip and
confirm you transaction amount. Your purchase transaction is now
complete and the transaction amount has been debited to your NBP
account. Please retain your transaction for further reference.
Immediately after receiving the NBP Cash Card, change your PIN
Code at the nearest NBP ATM.
Never share your Personal Identification Number (PIN) or given it
out over telephone.
Never write your PIN Code on your card.
Never keep your card and PIN at the same place.
As you approach an ATM, beware of your surroundings, if you
notice anything unusual, visit the ATM later.
Immediately report a lost of stolen card to your NBP branch.
Stand close to the ATM machine while entering your PIN and do not
allow anyone to watch.
Ensure that the merchant has entered the correct amount of
transaction before you enter your PIN code.
Maintain your POS receipt as a record and ensure that he card
returned to you by the cashier/attendant is yours.
Protect your card from direct sunlight and magnetic fields.
Do not bend your card.
Carefully dispose off your old card when your are issued a new one.
Eligible if:
For utilizing the NBP Investor Advantage, please follow the following
simple steps:
Features:
Facility of revolving basis of loans for three years for which new
documents requirement is not required
SWOT Analysis
A SWOT analysis is an effective tool, which can be used to examine the
issue that will directly affect the success of alternative delivery
mechanism. The emerging banking environment is becoming more
competitive with the advancement of new technology. The banks are
striving to provide their customers with prominent and efficient services at
lower cost in order to get the competitive advantage upon other banks.
During the internship program a SWOT analysis was also conducted
which is as follow:
Strengths
7. Sale & Purchase of prize bonds, NIT units, National Defense Saving
Certificates (NDSCs) and other government securities.
8. Heavy project financing, Agriculture, Industrial as well as small
loans
9. Key role in country’s economic development
10. Easy and shortened documented procedure
11. Guidance and help of experienced people
Weaknesses
Opportunities
Threats
Current Account
Current accounts are opened for meeting the current needs of the
customer. On such account there is no markup paid to the
accountholders. These are also called non-interest bearing accounts.
Minimum balance requirement is Rs. 5,000 if balance of the account will
be less than 5,000 than Rs. 50 to be deducted each month. Pension,
Government employees, students, widow are exempted from this
restriction. No Zakat will be deducted from the current Account holder.
2% tax will be deducted if the customer withdraw more than 25000 in a
day
.
Requirements for the Current account
These type of deposits are offered for a term or a specific time period.
The minimum deposit should be for the 7 days at least. If the customer
will want to withdraw from the term deposit then the saving rate will be
applied on the amount.
Requirements
PLS Saver
The newly introduced scheme by the NBP is PLS Saver which is effective
from the 1.1.2007.
The customers in this account deposit a lot of amount. On such amount
there is markup paid to account holders. Minimum balance requirement is
Rs. 20,000 and the maximum limit is 300,000. if balance of the account
will be less than 5,000 than Rs. 50 to be deducted each month. Pension,
Government employees, students, widow are exempted from this
restriction. Zakat will be deducted from the Account holder.2% tax will be
deducted if the customer withdraw more than 25000 in a day.
NBP provides financing for its clients’ capital expenditure and other long-
term investment needs. By sharing the risk associated with such long-
term investments, NBP expedites clients’ attempt to upgrade and expand
their operation thereby making possible the fulfillment of our clients’
vision. This type of long term financing proves the bank’s belief in its
client's capabilities, and its commitment to the country.
With National Bank’s Cash Management Services (in process of being set
up), the customer’s sales collection will be channeled through vast
network of NBP branched spread across the country. This will enable the
customer to manage their company’s total financial position right from
your desktop computer. They will also be able to take advantage of our
outstanding range of payment, ejection, liquidity and investment services.
In fact, with NBP, you’ll be provided everything, which takes to manage
your cash flow more accurately.
Lending Policies made by the NBP have categorized the loans in the
following types according to the requirements of the customers.
TYPES OF ADVANCES
1. Security Vice
Clean Advances
In these types of advances only the personal
guarantee of the borrower is involved. The best example is the Credit
Card.
Secured Loans
The loans the sectioned of those are associated with
the security. The securities may be of the following types:
• Personal Guarantee
• Personal Guarantee + Hypothecation
• Pledge
• Mortgage
• Charge/Lien on the Current Asset
2. Period Vice
The loans that are designed according to the time periods needs.
• Short Term Loans (For 1 year only)
• Long Term Loans (For 5 years)
3. Utilization Vice
The advances that are typically designed according to the
utilization requirements of the loans.
• Working Capital Requirement
• Project Finance
4. Customer Vice
According to the customer
• Consumer finance
• SME lending
• Corporate Financing
5. Sector Vice
All the types of advances comes under the following Credit Heads
1. Small Finance
2. Cash Finance
3. Running Finance
4. Demand finance
5. Agriculture Finance
6. Corporate Loans
Small Finance
As the name indicates, this head involves small amount that will
be financed by the bank. The loan is for the business people only. The loan will
be issued against any tangible security of the businessman. These small loans are
sanctioned for short period of times i.e for 1 year only. After one year the
customer will have to pay back the amount or will renew his loan.
The loan amount will be 60% of the amount of the property that is being pledged.
The mark-up Rate Is fixed 12% annually.
Under Small Finance following types are included.
• Gold Finance
• Commercial finance
• Industrial Finance
Gold Finance
If the customer has the gold then he can use it for the generation of
the money. 60% of the gold amount will be financed by the NBP after evaluation
from the jewelers those are under that contract of NBP. It is a short tern loan and
must be paid or renewed after 1 year.
Following documents will be required
• CNIC
• Complete information of Business
• CIB Report
• Application Form
For the small businessmen those are doing business at commercial level mainly
for sole proprietorship. The upper limit that will be sanctioned under this finance
is Rs. 250,000. For small industrialists this facility is also available. In this case
the upper limit will be 500,000.
Mark-up will be 12% and the loan is for 1 year.
Running Finance
This financing facility is also for short period of times, i.e for 1 year only. After 1
year it must be renewed or cleared. It is mostly issued against some type of liquid
assets, such as Defense Saving Certificates (DSC) or term deposits. These loans
are typically taken for the working capital requirements. While sanctioning the
loan the bank will create lien on the DSC or term deposit from the Issuing bank.
There is no limit for the loan.
75% of the DSC or Term Deposit will be given to the customer.
Demand Finance
Cash Finance
The limit of this type of cash is above 500,000. It is both for long run and short
run.
This type of loan is mostly sectioned to big industrials and businessmen.
The main advantage of this type of advance is that the customer can have loan up
to his requirement within the limit that has been sectioned to him. The mark up
will be charged on the amount that has been used by the customer not on the
whole, which is the case in Demand Finance.
Mark Up Rate is KIBER+2.3% Per annum.
Documents Requirement
• CIB Report
• Application Form
• Security Evaluation from authorized Jewelers
• BLA Report
• IB 6R (Finance Agreement duly signed by the Bank and customer)
• IB12 (Promissory Note)
• IB 26 (Pledge of security)
• HOX7 (Mark-up Rate Agreement)
• IB 25 (Hypothecation of Stock)
Any other document as per the requirement of the NBP.
Agriculture Finance
Agricultural Credit:
Farm Credit:
• Operating loans
• Land improvement loans
• Equipment loans for purchase of tractors, farm implements or any
other equipment
• Livestock loans for the purchase, care, and feeding of livestock
Production Loans:
Production loans are meant for basic inputs of the farm and are short
term in nature. Seeds, fertilizers, sprayers, etc are all covered under this
scheme.