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INTERNSHIP REPORT
BBA PROGRAM
SUMMER 2009
SUBMITTED TO
By
MARIAM ASHRAF
L1F05BBAM2026
PREFACE
This report is about my internship at National Bank of Pakistan Faisal town Lahore. In order to
be able to cope with the changing environment it is necessary to have some practical
experience. The students are deputed to different well-established organizations. There, they
not only have a close look at the working of their respective institutions but they also take an
active part in their daily proceedings. During this practical course we are provided with an
opportunity to learn that how the theoretical knowledge can be implemented in practical
grounds. I selected to do my internship in National Bank of Pakistan Faisal town Lahore.
During this internship span I have come to know the work criteria of almost all departments of
NBP I spent about six weeks of my internship in various departments like Bills collection,
knowing about western union, making scrolls of different kinds, clearing, bar code scaning e.t.c.
In this I have made analysis on the working and performance just as experiencing as an
employee. I have seen many daily transactions and working criteria of the bank.
During my internship I observed lot of strength and lot of weakness of the banks but I found as a
strongest bank in the country. But the national bank has an edge over the other private and
privatized banks because it is the Government Bank and it has large number of branches in the
country and also in outside the country. My overall experience of the internship is good.
ACKNOWLEDGEMENT
o I am thankful and grateful to Almighty Allah who enables me and gave me the power to
complete my internship report.
o Secondly, I am highly thankful to my internship advisor Prof: NISAR AHMAD who gave
me most valuable guidance.
o Last but not the least to National Bank staff members who extended fullest co-operation
to me in acquiring the knowledge about various aspects of banking.
DEDICATION
TABLE OF CONTENTS
Serial Page
Topics
No No
2 INTRODUCTION OF ORGANIZATION 7
3 BRANCHES 9
5 ORGANIZATIONAL STRUCTURE 11
6 REGIONAL STRUCTURE 13
7 FUNCTIONS OF NBP 14
9 CORE VALUES 25
10 SALARY STRUCTURE 27
11 DEPOSIT SECTION 29
14 INTERNSHIP EXPERIENCE 40
15 SWOT ANALYSIS 44
16 RECOMMENDATIONS 47
17 CONCLUSION 49
British banks. The State Bank of Pakistan, the central bank, was formed
powers of the State Bank of India. In the period of 60s to 70s the
directly by the state or through the SBP, and were intended to concentrate
leaving the SBP as the sole regulatory authority for banks and financial
INTRODUCTION OF ORGANIZATION
NATIONAL BANK OF PAKISTAN
NBP stood behind jute trade, SBP stood behind NBP and the government stood behind
SPB. Speedly it was such that 6 branches came into being at once and the doubts on
our ability to handle this situation were dispelled for ever Now, as the Jute Board and
NBP were in the field, the foreign merchants and bankers also rushed in to get their
share in the business and consequently NBP had to lay out much less finance than it
could. It was classified as a Non-profit bearing and services oriented institution.
Moreover, it was designated as Agent of the State Bank of Pakistan. The Bank has also
played an important role in financing the country’s growing trade, which has expanded
through the years as diversification took place.
In the first five years of the National Bank of Pakistan has trained an
entire crops of Muslim bankers; opened branches all over Pakistan, and
played a dominant role in the financing of Pakistan’s chief export crops
cotton and jute its position as sole fiscal agent of the State Bank of
Pakistan is firmly established while it is essentially a commercial bank the
government itself is the principle share holder and appoints the managing
director it is this factor which distinguished the National Bank of Pakistan
from other commercial banks while it operates in much the same fashion
as they it has taken greater risks when the national interest was at stake,
and it acts as the super head of any extension of the nation’s banking
system.
BRANCHES
“To be the pre-eminent financial institution in Pakistan and achieve market recognition
both in the quality and delivery of service as well as the range of product offering”
MISSION
ORGANIZATIONAL STRUCTURE
Chief Manager
Chief
Operation
Manager
Manager (CRA)
Credit Manager
Credit
Processing
Operation
Manager
Manager Manager Admin
FEX* Manager JB*
Compliance
Inquiry
[Sections] [Sections] [Sections]
FEX Deposits Reconciliation
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Audit /Inspection
Export Bills Dispatch
Chief Manager
Chief
Operation
Manager
Manager (CRA)
Credit Manager
Credit
Processing
Operation
Manager
Manager Manager Admin
FEX* Manager JB*
Compliance
Inquiry
[Sections] [Sections] [Sections]
FEX Deposits Reconciliation
Cash/Chest
Govt. Collection
REGIONAL STRUCTURE
REGIONAL CHIEF
EXECUTIVE
The National Bank of Pakistan performs two types of function. It acts as an ordinary
commercial bank, and at places where there are no branches of State Bank of Pakistan
it represents Pakistan, that is why it cannot be privatized. As a commercial bank it
performs the following functions.
o Joint venturing with foreign dealers, agents and companies for its representation
abroad.
o Utility services.
o Treasury business.
o Gold finances.
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.
o A credit voucher is filled in order to get the excise duty, withholding tax and
exchange commission.
o The sender deposits the total amount of the two vouchers i.e. the debit and credit
vouchers.
o Then the cashier sends the cash receipt voucher to the accounts department and
the account records the amount paid in his cash scroll.
o Accountant gives the DD leaf along with the DD voucher to his assistant who
records the sender’s name, amount and receiver’s name. After writing all the
information in the DD register he gives it to the officer along with the DD for
authentication.
o After authentication the DD is handed over to the sender and bank sends the
advice to the concerned branch. So when the party presents the DD in the
concerned branch its payment could be made.
o Drawee Branch
Branch in which the draft has drawn and called upon to pay the amount.
o Payee
PROCEDURE
For sending the TT the manager applies a test. In the test the manager uses a coding
technique. He writes his own code number, which is allotted, to him as the bank branch
code. After making all the conformation the concerned branch makes the payment to
the receiver.
If the sender wants to convey the same massage through telephone then he has to pay
the charges of telephone along with the TT Charges. First the person deposit the TT
amount along with the charges through the credit voucher then his TT sent to the
relevant branch.
• SWIFT SYSTEM
The SWIFT System (Society for Worldwide Inter bank Financial Telecommunication)
has been introduced for speedy services in the area of home remittances. The system
has built-in features of computerized test keys, which eliminates the manual application
of tests that often cause delay in the payment of home remittances. The SWIFT Center
is operational at National Bank of Pakistan with a universal access number NBP-
APKKA. All NBP overseas branches and overseas correspondents (over 450) are
drawing remittances through SWIFT.
• LETTERS OF CREDITS
NBP is committed to offering its business customers the widest range of options in the
area of money transfer. If you are a commercial enterprise than our letter of Credit
service is just what you are looking for. With competitive rates, security, and ease of
transaction, NBP Letters of Credit are the best way to do your business transactions.
• TRAVELER’S CHEQUES
Negotiability: Pak Rupees Traveler’s Cheques are negotiable instruments
o Validity: There is no restriction on the period of validity
o Availability: At 700 branches of NBP all over the country
o Encashment: At all 400 branches of NBP
o Limitation: No limit on purchase
o Safety: NBP Traveler’s Cheque is the safest way to carry our money
• 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.
PROCEDURE
The procedure of a pay order varies with the nature of the purpose. If the work is of
huge amount then first the manager writes a letter to the Zonal Chief in order to get
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sanction of the work. Then the advertisement of the work is given in the newspaper in
order to invite the contractors. But if the work is small then the branch manager has
discretionary power to select the party whose rate is lowest. After finishing the work the
contractor submits the bill of work on his stamp pad. Then the bank issues a pay order,
against the pay order the contractor gets the amount from the issuing branch.
• MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service.
And we also offer the most competitive rates in the market.
It is the transfer of money from one branch to another branch of the same bank through
mail service. In mail transfer there is no need of advice as the amount is directly to the
receiver’s account.
PROCEDURE
o First a voucher is filled in which the sender writes the amount to be sent, name,
account number of the receiving person with the branch name and date.
o A credit voucher is filled in order to deduct exchange, postage charges and
withholding tax according to the amount of the mail transfer.
o The sender deposits the total amount of the two vouchers in the cash department.
o The cashier gives the vouchers to the accountant after affixing received stamp and
writing the amount in red ink.
o Then the accountant writes the amount paid in the cash scroll and gives the MT to
his assistant.
o MT leaf is filled according to the information provided in credit voucher. He also
writes the same information in the MT register. Then he gives the MT leaf and MT
register to the officer for authentication.
• FOREIGN REMITANCES
• EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its economic base and
restore investor confidence. The bank is now regarded as the most active and
dominant player in the development of the stock market.
NBP is involved in the following:
• Investment into the capital market
• Introduction of capital market accounts (under process)
NBP’s involvement in capital markets is expected to increase its earnings, which would
result in better returns offered to account holders.
• COMMERCIAL FINANCE
Let us help make your dreams become a reality.
• AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidity faith, commitment and pride of farmers
who produce some of the best agricultural products in the world. Agricultural Finance
Services:
“ I Feed the World” program, a new product, is introduced by NBP with the aim to help
farmers maximize the per acre production with minimum of required input. Select farms
will be made role models for other farms and farmers to follow, thus helping farmers
across Pakistan to increase production.
Agricultural Credit
The agricultural financing strategy of NBP is aimed at three main objectives;-
o Providing reliable infrastructure for agricultural customers
o Help farmers utilize funds efficiently to further develop and achieve better production
o Provide farmers an integrated package of credit with supplies of essential inputs,
technical knowledge, and supervision for farming.
NBP also provides the following subsidized with ranges of 3 months to 1 years on a
renewal basis.
o Operating loans
o Land improvement loans
o Equipment loans for purchase of tractors, farm implements or any other equipment
o Livestock loans for the purchase, care, and feeding of livestock.
• PRODUCTION LOAN
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. If you require any
further information, please do not hesitate to e-mail us.
• CORPORATE FINANCE
Working Capital and short Term Loans
NBP specializes in providing Project Finance – Export Refinance to exporters – Pre –
Shipment financing to exporters – Running finance – Cash Finance – Small Finance –
Discounting & Bills purchased – Export Bills Purchased / Pre – shipment / Post
shipment agricultural production loans
Medium term loans and Capital Expenditure Financing
Because we understand our syndicate partner’s asset criteria, we help borrowers meet
substantial financing needs by enabling them to reach the banks most interested in
lending to their particular industry, geographic location and structure through syndicated
debt offerings. Our syndication capabilities are complemented by our own capital
strength and by industry teams, who bring specialized knowledge to the structure of a
transaction.
• INTERNATIONAL BANKING
CORE VALUES
OBJECTIVES
• Remodeling the bank on the lines of latest global practices.
• Converting the NBP in to a viable platform for financial success and growth.
• Stabilization of deposit base.
SALARY STRUCTURE
• Bonuses
Bonuses are also given to permanent employees on their performance basis. In case of
very good performance 2 basic salaries are given and in any other case after every six
months i.e. June and December. These are first and second profit bonuses and are
equal to one month's basic salary.
• Allowances:
Allowances included house allowances, transport allowance and utility allowance.
• Provident Fund:
Provident fund is provided to each employee on his retirement. Contribution by
employer and employee.
• Preparation of statements:
DEPOSIT SECTION
All types of cash transactions are deled under this section. Now we see the types of
accounts, which are opened in this section.
TYPES OF THE ACCOUNTS
Depositors can open the following types of accounts with the National Bank of Pakistan
o Current account
o P.L.S saving account
o P.L.S Term Deposit Account
o M.I.S (Monthly Income Scheme)
A brief introduction of these accounts is given below.
• CURRENT ACCOUNT
As the name signifies the depositor can draw or demand amount at any time by
presenting the cheque in bank. Unlike time deposits there is no restriction of
The customer can open an account with the National Bank of Pakistan in the following
categories
o Individually
o Jointly
o Sole proprietorship
o Partnership
o Corporation
• INDIVIDUAL ACCOUNT
A person can open an account in National Bank of Pakistan in Pak-rupee, first of all
he/she has to fill the account opening form provided by the bank. Then his introduction
is done before the branch manager. An existing account holder of
The bank or an officer of the bank who know him very well can do this introduction. A
copy of his identity card is must attached with his account opening form. If the account
JOINT ACCOUNT
A person can open an account in N.B.P in Pak-rupee. An account opening form is
given form that branch where he wants to open his account. In that opening form he
provides complete information about the account holders. If any one or both of them
are illiterate then he or they give the photographs to the bank. Then the introduction of
the person is done.
A copy of their identity card is must attached with his account opening form. He or she
also states the made of operation with is clearly written in their account opening form.
In joint account there is two modes of operation first are “Jointly” and second is “E or S”.
In jointly mode both the persons must sign the cheque. And for any of transaction they
must dually signed the documents while the either or survivor mode any one of them
can sign the cheque and withdraw his money.
• SOLE PROPRIETORSHIP
The person who is the sole owner of a business can open an account with National
Bank of Pakistan after providing the following documents to the bank officer.
• PARTNERSHIP FIRMS
The partnership firms can also open an account with the bank. But for this purpose they
have to provide the certain type of information to the bank. For this purpose a form is
provided to the account holder in which they provide the following information to the
concerned branch and the person who can draw the amount from the bank is also
nominated.
o Name of firm
o Name of parties
o Identity card of partners
o Registration certificate of the firm
o Issuance date
o Name of account holder
o Account number
o Type of account
After authentication by the authorized offer on the chequebook register, the chequebook
is handed over to the account holder
• ENCASHMENT OF CHEQUES
o Issuance of Token
After scrutinizing the apparent tenure of cheque a token is issued to the account holder.
o Verification of signature
After affixing the two stamps i.e. pay Cash and Signature Verified, a cheque is sent to
the accountant for the verification of signature from signature specimen card. After
authentication of signature and posting in his account the cheque is sent to the cash
department for the payment.
o Payment of Cash
Cashier pays the amount to the token holder after getting back the token from customer.
• DEDUCTION OF ZAKAT
From the PLS Saving account Zakat is deducted at the rate of 2.5 % annually on the
outstanding balance of account on the first day of every valuation date i.e. first day of
Ramadan. Minimum balance of the deduction of Zakat is fixed by the Central authority
(CZA) before the valuation date.
• CLOSING OF ACCOUNT
There are many reasons for closing of an account. It is not a good indication for the
business of the bank. Some of the more common reasons are as follows
o Account holder’s own request
o Death of the account holder
o Bankruptcy of the account holder
o Closing of account due to bad conduct of account holder etc.
An account is closed at the request of account holder or as a result of improper conduct
of the accept holder or because of nil balance of the account. In first case account
holder requests in black and white to the branch manager to close his account. While in
second’s case the branch manager is authorized to close the account.
But bank before closing the account first sends a letter to the account holder that his
account will be closed.
So after fulfilling the legal requirements, it is marked of the accounts holders number
that the account has been closed.
• Documentation Requirement
All potential cardholders must complete and sign NBP’s credit card application form.
The application form must be accompanied by the following
o Three-passport size color photograph bearing the name of the applicant at the
back.
o An attested copy of the National ID Card.
The following documents are also required depending upon the applicant
• Individuals (salaried)
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A copy of three months bank statement, where the salary is directly credited into bank
account or latest salary slip.
o Company Guarantee
Copy of memorandum and articles of association with certificates of incorporation of
guarantor.
o Partnership Clients
o Attested copy of partnership deed.
o Tax assessment order for the firm (for last two year)
o Audited financial statements of the firm (for last two year).
National Bank of Pakistan always makes efforts to improve its goodwill in the general
public. It introduces different kind of schemes time to time.
The most popular schemes conducted by NBP are as under:
o Hajj Mubarak Scheme
o NBP Advance Salary Scheme
o Fund Management Scheme
INTERNSHIP EXPERIENCE
My branch is not a big branch online processure is not there and I have only performed
the limited activities due to small branch and the activities which I have performed
during my intership are:
• Transfer vouchers
o Separating all the pay order of request for transfer of funds, credit vouchers,
intercity Cheques
o Checking that these were properly filled and signed.
o Arranging all those according to the account number.
o Placing them in the register and branch code, date, and number of debit and
credit vouchers columns was filled.
OPENING ACCOUNTS
o For opening an account firstly all the customers have to fill a form prescribed by
the bank.
o The person is required to bring some reference or introduction for opening the
account. Introducer may be the person who has any account with NBP.
o Some important information regarding introducer e.g. the name and account
number of the introducer is written on the space provided on the specimen
signature card.
o Then in order to find out whether he is a true introducer or not, a letter is sent to
him thanking him for this introduction so that anything wrong may come into
notice.
There are different requirements for different types of accounts and accountholders.
• WITHDRAWALS
o Cheques can withdraw amount.
o The withdrawals can be made only at the branch where the account is
maintained. The officer under his full signature authorizes all cash withdrawals.
I used to separate all those requisitions and carefully scrutinize them and criteria
were:
o Account number
o Account title
o Number of cheque books required
o It should also mention that how many leaves cheque book is required because
50 leaves cheque book bank charge Rs. 150 for that and 25 leaves cheque book
Rs. 75 is charged.
o The authorized officer had duly signed it. On the backside accountholder
signature and the bearer signatures are present.
CLEARING DEPARTMENT
Main branch receives the cheques from all of its branches and makes the lots of these
cheques again. Main branch sends these cheques to the state bank of Pakistan where
a clearinghouse exits. In this clearinghouse the representatives receive their cheques
and go back to their bank's main branch. Then the main branch sends these cheques
to their relevant branches where the validity of these cheques is verified and the
accounts of the relevant clients are affected.
The statement of clearing was submitted before 1.00 P.M. daily. The whole procedure
of clearing is completed within two days.
SWOT ANALYSIS
• STRENGTH
• WEAKNESS
o No consumer banking has offered by the National Bank of Pakistan to its clients
like phone banking evening banking etc.
o Computer literacy is very weak over there.
o For withdrawing cash against the cheque the process is too slow
and old and many other foreign bank adapting new method.
o Old employees are not cooperative with the customers and also rigid. It might be
due to their low qualification.
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o Machinery and equipment like stationary are not very much good.
o Most of the national bank branches are offline.
o Method of entering the Sui Gass Wasa Bills and Government
receipts are manual which is not effective.
• OPPORTUNITY
o Now there is a trend that financial institution are going towards to the Islamic
banking .For National Bank of Pakistan it us the big opportunity if he deal in
consumer banking because new banks deals in consumer banking and earn lots
of profit. The consumer banking is the one of the low risky sector in banking .as
the State bank is collecting the funds form public with the name of Islamic
deposit.
o National Bank of Pakistan oldest bank in the country people do rely on this bank
with some additional efforts bank can attract high deposit from Pakistan and
overseas.
o Now-a-days National Bank of Pakistan has been investing almost 18% of its total
investment on cotton business; along with investment in cotton it should invest in
other cash crops, i.e. Rice, Sugar Cane, Tobacco, Wheat etc and there related
agro based industry.
o Instead of emphasizing on big & long term projects bank should concentrate on
small scale investments heaving small maturity period.
• THREAT
RECOMMENDATIONS
plans to attract the customers by giving them certain incentives and beneficial
schemes to the customers as other competitor banks are doing so.
o Also the Government should take interest to recover its bad debts, which can
o To motivate the employees of the bank, regular bonuses and incentives should be
given to them.
o There is also a need of proper recruitment and selection program. New young talent
should be introduced to inject the new ideas.
o Deterioration in efficiency is mostly due to promotion without merit. So promotions
must be awarded on merit and also when due.
o Political influences in the bank should be eliminated.
CONCLUSION
I observed that NBP has some very good points and these are:
o As a whole bank is performing well in the financial markets
o The overall working environment is good.
o Management gives full support to their staff and provides them benefits and
reasonable salaries.
o NBP is very popular among business circles.
o The employees are very cooperative and helpful and they have friendly relations
with each other.
NBP is working progressively and the management is performing its role in a very good
manner.All the policies of the bank shows a positive trend, which indicates that
profitability; solvency and liquidity position of bank is sound.
BIBLIOGRAPHY
o http://www.nbp.com.pk
o www.google.com
o www.askgeeves.com
o www.encyclopedia.com
o www.vickipidia.com
o www.bankerclub.com
o www.sbp.org.pk
o http://www.ibp.org.pk