Internship Report of National Bank of Pakistan

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN
INTERNSHIP REPORT ON
NATIONAL BANK OF PAKISTAN
PRESENTED TO:
PROF. HAFIZ IMRAN

PRESENTED BY:
UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS
TABLE OF CONTENT
Serial No 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Acknowledgement Dedication
Content
Executive summary
Page No I II III 01 03 04 06 08 13 15 18 19 20 23 28 30 41 64 71 85 90 92 95 97 98
Introduction of study Introduction to banking Importance of Banking Role of Banking in Pakistan Commercial Banking in Pakistan Introduction of Organization History of NBP Vision Mission Core Values Management of Organisation Hierarchy of NBP Marketing mix of NBP Departments of NBP Work Done by me Finanacial analysis SWOT analysis PEST analysis Recommendations Conclusion Bibliography Glossary
INTRODUCTION OF THE STUDY

Background of the Study
This study is focused on the National Bank of Pakistan. And is carried out to familiarize the students with the working of banks and banking environment and to produce a comprehensive report on it.
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Purpose of the Study

Being a student of business administration the purpose of conducting this study is to develop some insight into the working of banks, the National Bank especially here. More thoroughly, after somewhat understanding the procedures of the Bank, the aim is to make a critical analysis of it and suggest recommendations. Along with being a course requirement, the purpose of this study is to develop and enhance the analytical skills.
Scope of the Study

The study is confined to banking operations. An attempt, along with all its limitations, to collect financial data and general statistics of the bank has been made. The scope of this particular study confined to the National Bank of Pakistan Gujranwala Branch. More specifically, the Foreign Trade Department of the above mentioned bank branch is the major emphasis of the study.
Methodology of the Report

The methods of data collection are mostly based on personal observations and experiences of actually working at the Bank. Dealings with customers, along with general procedures involved were observed. Moreover, as the departments are always bustling with activity, there was not enough time to carry out formal interviews or surveys, the methods used for data collection are:
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Primary Data

Observations Discussions with Bank officers
Secondary Data

Manuals Annual Reports Information Memorandum Internet
INTRODUCTION TO BANKING
There are many definitions of the word Bank even the standard encyclopedia and law books find it difficult to state exactly what a Bank is. There have been many attempts by different writers to explain the exact significance of the term Bank. Here some of the definitions are quoted as follows. According to the Banking Companies Ordinance 1962 Section 5 (b) defines Banker means a person transacting the business of accepting, for the purpose of lending or investment, of deposits from the public, and withdrawal by cheques, drafts, order of otherwise, and include any post office saving banks According to Crowther Bank is a dealer of debt, his own and of other people. According to Gilbert A bank is a dealer in capital or dealer in money. He is an intermediary party between the borrowers and lenders. According to Samulelson Commercial banks provide certain services for customers and in return receive payments from them. According to Holder The modern banker is primarily a dealer in credit.
IMPORTANCE OF BANKING
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We can take bank just like a heart in the economic structure and capital provided by it is like blood in it Banks play very important role in the economic life of a nation. The growth of the economy is dependent upon the soundness of its banking system. Although banks do not create new wealth but borrow, exchange and consume. These make generation of wealth. In this way they become most effective partners in the development of that country. To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks deposit surplus from the public and then advances these surpluses in the form of loans to the industrialists, agriculturists, businessmen and unemployed people under different schemes so that they set up their own business. Thus banks help in capital formation. If there are no banks, then there would be concentration of wealth in few hands and great portion of wealth of a country would be idle. In the fewer developing countries rate of saving is very low and due to this, rate of investment and rate of growth is also very low. We can take bank just like a heart in the economic structure and capital provided by it is like blood in it. As long as the blood is in circulation, the organs will remain sound and healthy. If the blood is not provided is not provided to any organ then the organ would become useless. So if the finance is not provided to agriculture sector or to industrial sector, it will be destroyed. Loan facility provided by bank works as an incentive to the producer to increase production. Banks provide transfer of payment facility, which is cheaper, quicker and safe. Many difficulties in the international payment have been overcome and volume of transactions has been increased. These facilities are very much helpful for the development of trade and commerce.
BANKING SECTOR IN PAKISTAN
Before independence, the financial sector was in the hands of foreign banks some of them were British by origin. The oldest bank operating from 1883 in this part of the world was the Chartered Bank while another bank namely the Grind lays Bank that was also working simultaneously from 1883. In order to expand its business operations, the Grind lays acquired other small banks and merged them into the business of Grind lays. For example, Allied Bank, National Bank of India etc was merge into Grind lays Bank. Among the contemporaries, Imperial bank of India was the largest Indian Bank that had started its operations in 1919 which was discharging the role of a commercial banks as well as the Central Bank for India until an independent Central Bank i.e. Reserve Bank of India was establish in 1935. However, since the Imperial Bank had the largest network of its branches all over India, it continued to play its role as a subsidiary of the Reserve Bank of India. In the Muslim majority, areas, which were later on, became the part of Pakistan, small branches of Indian banks were operating and soon after creation of Pakistan, they shifted their branches and headquarters to India. (Banking system in Pakistan by Shujat Ali Baig, 2010)
ROLE OF BANKING IN PAKISTAN
The banks plays role for economic development. Due to banking system economy is develop because it provides facilities for different people and investors. They provide loan, credit cards, insurance and many more facilities for that reason country economy developed. The banking field is so broader and stable in which so many people get their jobs, which cause in reduce in unemployment in some extent. On the other hand banks provides investment services, investment funds, private banking, custody services, safety services and perform much more other duties which is helpful for the economic development of any country. In Pakistan, agriculture development bank provides loan to the former on low interest rate for promoting the agriculture sector in Pakistan. Pakistan most economy is dependent on the agriculture sector as well as small industries so banks help them in their financial issues. (Role of commercial banks Pakistan, 2010)
FUNCTIONS OF BANKS IN PAKISTAN

Receiving deposit This is the main function of banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers. i. Current Account or Demand Deposits: Any amount can withdraw from this account any time without any notice. No interest is allows on this type of account. ii. Saving Account: This type of deposit account which is usually held by the middle class group. The saving account carries lower rate of interest.
iii. Fixed Deposit: Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest allowed in fixed deposit, which is different according to period. Advancing Loans:
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This is the important function of the commercial bank. Credit is given to the people in different ways. (a.): Making Loans: There are three types of loans given to borrowers. i. Short Term Loans: These loans are advanced for the period of six months to one year. High Interest rate Is charged on this type of accounts. ii. Medium Term Loans: Loans from one to five years are called medium term loans. iii: Long Term Loans: Loans which are advanced for the period, more than ten years are long term loans. (b.): Bank Overdraft Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft. (c.): Cash Credit: Bank also gives credit against immovable property and interest is charged by the bank. (d.): Discounting of Bills: This is income source of bank to discount bills of exchange. They charge nominal Interest and discount only reputed and clear bills of exchange. (Commercial banks Pakistan, 2010)
COMMERCIAL BANKING IN PAKISTAN
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It was very difficult for Pakistan to build up its own Banking system immediately after independence without sufficient resources. Following the announcement of the partition plan in June 1947 there was a haste movement on the parts of banks to transfer their funds and accounts across the borders. The banks having their registered offices in Pakistan were transferred to India. In an effort to bring about the collapse of the new state by the persecuting an international policy of withdrawal, the Indian bank offices closed quickly. Those banks, which stayed, were considering the winding up of their business. By 30th June 1948 the number of schedule banks in Pakistan declined from mere scratch. Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. All this development in the banking sect is the result of untiring efforts of four decades.
PHASES OF BANKING IN PAKISTAN

Broadly speaking we can divide the development of commercial banking into four phases PHASE-1 1947-1974 Establishment of commercial banking system PHASE-2 1974-1979 Nationalization of banks PHASE-3 1979-1991 Islamisation process PHASE-4 1991-2000 Privatization process
FIRST PHASE (1947-74)

SET UP OF COMMERCIAL BANKING SYSTEM
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This was the first phase of development of Pakistans commercial banking system, which consist of the circumstances under which the development of banking was started in the country. INITIAL POSITION OF BANKING IN PAKISTAN There were 19 non-Indian foreign banks in Pakistan at the time of independence with the status of small branch network, whose policies and operations were controlled by their head offices abroad. These banks were engaged solely in export of corps from Pakistan. There were only two Pakistani banks, the Habib bank, which had transferred its head office from Bombay to Karachi after the announcement of the partition plan, and Australian bank which has been working in Pakistani territories prior to June 1947. The government of Pakistan tried hard to eliminate the banking crises. Banking Companies Ordinance 1947 was promulgated to safe guard the interest of both the bankers and the companys customers. The situation however showed no significant improvements. The imperial bank of India closed down most of its offices in Pakistan, which had been working as the agent of the reserve bank of India was not willing to purchase even token amounts of the government of Pakistan. Securities on the plea that these securities were not marketable. The reserve bank of India was hardly of any help. It refused to help government of Pakistan with advance argument adhoc securities to enable them to make essential disbursements such as salaries and other obligations to add to the difficulties. The Indian government withheld Pakistans share of Rs. 75 crore in cash balances held by her at the time of independence. The foregoing developments clearly brought home the urgency of assuming control and currency in Pakistan and brought to the fore the need to setup a central banking institution to take the place of reserve bank of India. Therefore it was agreed between the government of India and Pakistan to authority of Pakistan from 30th September 1947 to 30th June 1948 In order to make necessary arrangements of the establishment of the central bank of Pakistan a committee was appointed to recommend the necessary steps. Consequently the Governor General of Pakistan and father of the nation Quaid-eAzam Muhammad Ali Jinnah Inaugurated the State Bank of Pakistan on 1 st July 1948. After the State Bank order was promulgated on 12 th May 1948. When it assumed full control of banking and currency in Pakistan the first important task before the SBP was to issue of currency notes and withdrawal of reserve bank of India, which had been in circulating in Pakistan so far.
SECOND PHASE (1974-1979)

NATIONALIZATION OF BANKS
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The banking reforms turned out to be a transitional and temporary step and hardly after 18 months had the government nationalized the banking system. Thus through the Nationalization Bank Act 1974, SBP and all commercial banks incorporated in Pakistan and carrying on business in or outside the country were brought under the government ownership with effect from January 1974. The ownership and management of all Pakistan banks stood transferred and rested in the federal government. The shareholders were provided compensation in the form of federal government bonds redeemable at par any time within a period of fifteen years. The amount of compensation was equal to the break up value of the shares in case of commercial banks. For the State Bank shares the amount of compensation was estimated on the basis of average of the clearing quotations during the six working days preceding nationalization. The chairman, director and chief executives of various banks were remove from their offices other than those appointed by the federal government and the state bank. The central board of banks, managing committees and similar other bodies were dissolved. A Pakistani banking counsel was established for nationalized commercial banks to co-ordinate their activities. As a result of merger of banks the following five major banking companies were formed: 1. 2. 3. 4. 5. National Bank of Pakistan Habib Bank Limited United Bank Limited Muslim commercial Bank Limited Allied Bank of Pakistan
THIRD PHASE (1979-91)

INTRODUCTION OF ISLAMIC BANKING
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In 1977 the Bhutto government was toppled. The martial law government planned to reform the banking sector in a novel way. The overall policy was to Islamize the economy and the banking system, being based on interest was an important target of the new policy. The most preferred form of Islamic bank financing profit and loss sharing would require banks to receive deposit without guaranteeing any return. The Islamic bank has to acquire a high degree of confidence of the saver to make him deposit his money with them. Not even the return of the principle amount if guaranteed. The Islamic bank cannot finance the project of an investor merely on the furnishing of collateral. The bank will have to be a partner in the project. This will require to careful security of the project and the assessment of risk involved because profits are the function of the amount of risk in the project. Honesty and trust form both sides of the market are more important to the system of Islamic Banking.
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FOURTH PHASE (1991-2000)

PRIVATIZATION AND DE-REGULATION The government headed by Prime Minister Nawaz Sharif was not fully satisfied with the performance of nationalized. The areas, which were severely criticized, were the falling standard of banking services and common red-tapism. There were complaints about the services as delay in home remittances, dispatch of cheques, drafts, inefficient counter services, bad debts of the banks etc. were on the rise. The government decided to privatize these banks. In order to implement privatization policy a privatization commission was established on 22 nd January 1991. The commission has transferred two banks MCB and ABL to the private sector. Application for privatization of other banks namely UBL and HBL were also invited but the bidding response was quite poor. The privatization of these banks is under consideration. Legislation was enacted to permit the establishment of new banks and the government approved 10 application from the private sector for the grant of commercial bank licenses by SBP, out of these 9 new banks have since been incorporated. Till March 1994 there were 20 domestic scheduled banks with 9825 branches and 21 foreign banks with 66 branches in operation in the country. Overall investment of the scheduled banks in the current year rose to 76.7%. at present there are 24 domestic scheduled with 8137 branches and 19 foreign banks with 71 branches are in operation in the country. Total assets of domestic scheduled banks amounting to Rs. 1563.73 billion on 30 th March 1996. Overall investment of the domestic scheduled banks in the current year declined by 80% over the same period last year. 1. 2. 3. 4. 5. 6. 7. 8. Bank of Commerce Al Habib Ltd. Soneri Bank Ltd Union Bank Ltd. Indus Banks Ltd. Mehran Bank Ltd. Prime Commercial Bank Ltd. Askari Commercial Bank Ltd. Bolan Bank Ltd.
Now Mehran bank has been absorbed by National Bank Ltd, due to its poor performance and ultimate failure. Now the ABN Amro Bank has also been included in the list of foreign scheduled banks
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INTRODUCTION OF ORGNIZATION
National bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organization into a modern commercial bank. The Banks services are available to individuals, corporate entities and government. In todays competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, and NBP Kisan Dostand NBP Cash N Gold. It has implemented special credit schemes like small finance for Agriculture, Business and Industries, Administrator to Qarz-E-Hasna Loans to Students, Self Employment Scheme for Unemployed Person, Public Transport Scheme. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank Signed an Agreement with Western Union for expending the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently.
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National Bank of Pakistan has built an extensive branch network with 1265 branches in Pakistan and 22 overseas branches. The Bank has representative offices in Beijing, Tashkent, Chicago, and Toronto. It has agency agreements with more than 3000 correspondent banks worldwide. National Bank of Pakistan is a government bank. Its principal activities are to provide commercial banking and related services in Pakistan and overseas. The Group handles treasury transactions for the Government of Pakistan as agent to the State Bank of Pakistan. It has its Head Office in Karachi. The bank has 1254 domestic branches. In addition, NBP has 22 overseas branches.
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BRIEF HISTORY OF NATIONAL BANK OF PAKISTAN
The normal procedure of establishing a banking company under the Companies Law was set aside and the Bank was established through the promulgation of an Ordinance due to the crisis situation that had developed with regard to financing of jute Trade. The Bank commenced its operations from November 20, 1949 at six important jute centers in the then East Pakistan and directed its resources in financing of jute crop. The Banks Karachi and Lahore offices were subsequently opened in December 1949.
State bank of Pakistan after its formation demanded from the Indian Reserve Bank the assets against the Indian currency retired from Pakistan territory. Government of India refused to hand over the assets worth about five hundred million rupees. The dispute is still unsettled and these assets are still not delivered to Pakistan. Until June 1950, the Bank was engaged exclusively on jute operation. Thereafter, it was felt that it could expand its business to include other commodities as well. Bank took a big stride in 1952, when it replaced the Imperial Bank of India, as an agent of State Bank of Pakistan.
With the passage of time its functioning diversified as they take over the function of different institution with the passage of time like in past they took over the function of Imperial bank of India and now of NDFC (National Development Finance Corporation)
It is working as the agent of the state bank of Pakistan and performs its functions wherever state bank of Pakistan is not present.
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The government floated its 10 % of the shares in the open market in past and the ratio became 60: 40 and in future they trying to make it 55: 45. In 1999 national bank celebrated its golden jubilee during the last fifty years bank has made substantial strides in the financial services industry in Pakistan. In 1999 its market share was around 22% and it remains the largest financial institution in Pakistan.
We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities
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We shall work to

Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders
We aim to be people who

of Care about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures true success
We have confidence that tomorrow we will be

Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment
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Vision and Guide

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 Statement
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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
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We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities.
We shall work to

Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders
We aim to be people who

Care about relationships. Lead through the strength of our commitment and willingness to excel.
Practice integrity, honesty and hard work. We believe that these are measures of true success
We have confidence that tomorrow we will be

Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment
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AIMS & OBJECTIVE OF BANK

The main objective of National Bank of Pakistan has been to include and spread banking habits among the people mobilize their savings and thus make an ever increasing contribution to the economic development of the country. It has all along pursued a policy of rapid development extending, its facilities to almost every center of economic potential in the country. Its services have been increasing continuously and are being brought within an easy reach of the evergrowing number of people. Today 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.
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MANAGEMENT OF ORGANIZATION
Management is a distinct process consisting of activities of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human being and other resources.
MANGEMENT SYSTEM
The management has two types. Centralized Decentralized
Centralized Management tends to concentrate decision making at the top of the organization Decentralized disperses decision making and authority throughout and further down the organizational hierarchy. NBP have a centralized type of management because all the decisions are taken by the top management.
MANAGEMENT STRUCTURE
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Central board
The general superintendent and direction of the affairs and business of the bank shall be entrusted to the central board which may exercise all powers and things as may be exercised or done or done by the bank and or not by this ordinance expressly directed or required to be done by the bank in general meeting. The Central bank consist of the following directors namely: Managing Director The Managing director appointed by the central government under section 16, nine directors is directed in local or special meeting by the share holder in the following manners. The share holder registered in a branch, register maintained for an area mentioned in sub section (5) of section 8, shall elect from amongst themselves, such number of directors for that area as may be decided before election by the central government having regard to the proportion which that share capital subscribed by the share holders of that area bears to the whole. Provided that shareholders registered in branch register maintain at Dacca shall elect from among themselves at least two directors. Three directors appointed by the central government, provided that total number of elected directors representing the area for which the decca register is maintained shall not be less than three. Managing director President
President
The president of a Central board shall be appointed by the central government from among the directors.
Local Board
The local board shall be established for the area mentioned in sub section (5) of section B , one each at Karachi ,Dacca and the Lahore ,and shall without prejudice to the powers conferred by the sections 12, have power ,within the prescribed limits generally to transact all usual business of the bank. A local board should consist of following members namely; The Managing director One member appointed by the central board from amongst the directors elected by the share holder register in the branch register of the area. Two members appointed by the central government from the area in which the local board is situated.
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Three members elected in local or special board meeting from among themselves by the shareholder register in the branch register of the area. The Managing director shall be appointed by the central government for a period not exceeding five years and on such salary and terms and condition of the service as the central government may determined.
New Management Structure

The previous management was removed by the bank nationalization ordinance 1974. the general direction and superintendent of the affairs and business of the banks vests in the Executive board consisting of President (Chief executive) and five senior executives of the bank . The federal government in 1980 constituted a board of directors comprising the president and the members of executive board of the bank and two additional members one representing the ministry of finance and the other Pakistani banking council. Thus therefore, all nationalized commercial banks are controlled by the Pakistani banking council being subject to State bank of Pakistan regulation as well. The federal ministry is responsible for bank operations in the ministry of finance. Recently by the order of president of Pakistan, banking council of Pakistan is removed.
Board of Directors. An executive board composed of six senior executives of the bank and the president who is also the chief executive supervises the affairs and business of the bank, called the Board of Directors. Management Committee: Also there is a Management Committee consisting of nine senior executives of the bank, called the members and the president who is also the chairman of the committee.
TRAINIG and MANAGEMENT DEVELOPMENT WING

National bank of Pakistan has its national and development centers and 4 staff collages at: Karachi Lahore Peshawar Islamabad
In these centers and staff colleges, the banking training is provided to the officers, managers, and to potential managers. It arranges courses and seminars for middle
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and higher management in all. Each year almost 1500 persons receive training over there.
MANAGEMENT OF NATIONAL BANK OF PAKISTAN

An Executive Board composed of six Senior Executives of the Bank and the President who is also the Chief Executive supervises the affairs and business of the Bank.
Qamar Hussain Chairman&President

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Mr. Tariq Kirmani Director
Haniya Shaheed Naseem Director
Aftab Anwar Baloch Director
Shahid Aziz Siddiqui Director
Zahid Hussain Director
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Syed Muhammad Ali Zamin Secretary Board of Directors
HIERARCHY OF NATIONAL BANK OF PAKISTAN
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
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OFFICERS GRADE ASSISTANT VICE ASSISTANTS CASHIER PEONS PRESIDENT I II III
Branch Manger
BRANCH HIERARCHY OF NATIONAL BANK Manager Operation CIVIL LINES BRANCH, GUJRANWALA
Managers
Assistant Manager
Officers
Deputy Officers
Assistant officers
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Clerks
Peons and Guards
The branch manager is the head of the branch is assisted by the manger operations in carrying out the main functions of the branch. Remaining organizational structure is divided according to the requirements of different departments. There are currently three managers, two deputy managers, seven offices, 4 deputy officers and 2 assistant officers working in the branch. The total number of employees working in the branch is 18.
MARKETING MIX OF NATIONAL BANK OF PAKISTAN
Marketing is the task of creating, promoting and delivering goods and services to consumers and businesses. Organizations identify and profile distinct group of buyers who might prefer or require varying products and marketing mixes. The customer seeks for value and satisfaction. The organizations can increase the value of the customer offering in several ways e.g. raising benefits, reducing costs etc. marketing mix is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market. These marketing tools are known as 4 ps of marketing. These four marketing tools are viewed as 4cs by the consumers. 4 Ps Product/ Service Price Place Promotion
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4 Cs Customer Solution Customer Cost Convenience Communication
To identify the customer needs and fulfilling them is the basic objective of an organization. Marketing is not just satisfying your customers, you have to delight them and this can be done by acting upon this phrase. Under Promise and Over Deliver National Bank provides a winning combination of products and services to its prime customers. It is one of the countrys leading commercial banks, which ensures complete security, and reliability in all-financial transactions.
PRODUCTS
A product is anything that can be offered to a market to satisfy a want or need and a service is an act or performance that is essentially intangible and does not result in the ownership of anything. What products or services have to be offered to the target market depends on the market requirement and also the organizations profits. The organization will offer those products and services, which result in maximum profits and minimum costs. A bank is an organization rather a financial institution that provides products such as different types of deposits and services like foddering financing facilities to its customers. National Bank offers a diversified line of products and services to its customers. The unique products and services offered by National Bank are as follow:
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Consumer banking Corporate banking Commercial banking NBP advance salary NBP cash card NBP cash & gold NBP Karobar NBP Kisan Dost NBP online banking NBP Saibaan SWIFT
CORPORATE BANKING
These are branches which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies.
COMMERCIAL BANKING
The branches which has a credit exposure of less than Rs. 100 million but having a credit portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category.
CONSUMER BANKING
These are the branches which have exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches.
NBP ADVANCE SALARY

Affordable installments from 1 to 60
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Months, Take up to 15 advance salaries. Currently for NBP account holders of government or related organization employees.
NBP CASH CARD ATM plus debit card in one -------- One Card does it all NBP CASH & GOLD
Meet your need for ready cash against your idle gold jewelry with no minimum limits GET EXTRA BENEBIT FROM YOUR GOLD NBP KAROBAR This is a Rozgar scheme introduced by President of Pakistan recently, this includes NBP Sasti Savari NBP Chalti Pharti Dukan NBP Rabata Duniya Se NBP Maal atao Pasey Kamao NBP KISAN DOST NBP affordable agriculture program offers you a wide range of financing
Recently National Bank of Pakistan has introduces home finance scheme with name of Saibaan.
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Affordable

Easy installment No surprises
Flexible

Mark-up choices Grace period option
Convenient

Structured and programmed Minimum approval and disbursement timing
PRICE
It is second important tool of marketing mix because it plays a major role in determining the customers choice. Also it is the only marketing tool that results into revenue. The banks offer advances to their clients by charging ascertain rate of mark up or interest. This mark up or interest charged is the price. The customer makes a comparison between the prices offered by other financial institutions and National Bank and then selects the most suited offer. The charges are stated in a schedule of charges for every facility. Some of them are given:
NBP Products
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Rate of charges
Cash & Gold NBP Karobar Kisan Dost NBP Saibaan
12% per annum 7.5% per annum 6.5% per annum 7.5% per annum
Punjab Sindh NWFP Blochistan Azad Kashmir Regional Offices Domestic Overseas
Total
732 290 110 32 31 29 1224 18

1242
PLACE
The location of the bank plays a vital role in making its operations profitable. If the bank is located in some business center then it will be very easy for it to attract business people as its customers. Therefore NBP has most of its branches at places
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where it can reach its targets customer easily. The branch network of National Bank is given as follows:
BRANCH NETWORK
Presently the Bank is divided into 10 Groups headed by SEVPs/EVPs. 9 Regions reporting to as many Regional Chiefs and 15 Single Branch Zones headed by Zonal Chiefs; 12 corporate branches and 1,254 domestic branches headed by Branch Managers control its field operations.
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With the geographical development of its branches, the Bank has been able to extend its services to a much larger number of Pakistanis all over the country. Today it has more than 8.5 million accounts. Bank maintains its presence in all the major financial centers of the world through its 21overseas branches and 4 representative offices. Of these, three representative offices have recently been set up at Tashkent (Uzbekistan), Baku (Azerbaijan) and Almaty (Kazakhstan) to take advantage of the emerging opportunities in CIS countries. Apart from having a vast branch network, Bank is at the forefront in the acquisition and application of new technologies in every aspect of its banking facilities. It has acquired leased telephone lines for on-line banking. The Bank has 12 Regional Computer Centers to cover various on-line and batch system requirements of branches and controlling offices. Bank has also a presence on the Internet. It has modernized its services by installing Automated Teller Machines (ATMs) called "CASH LINK" at selected branches and presently 17 ATMs are operational in major cities.
Here is a list of the banks locations in Pakistan accordance to each province or territory;
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Sindh: Dadu, Sanghar, Hyderabad, Jacobabad, Shikarpur, Karachi, Larkana, Mirpurkhas, Badin, Nawabshah, Sukkur, Khairpur, Tharparkar. Punjab: Bahawalpur, D.G. Khan, RYKhan, Faisalabad, Gujranwala, Sialkot, Narowal, Jhang, Jhelum, Gujrat, Chakwal, Darya Khan , Bhakkar, Lahore, Multan, Murree, Attock, Gilgit, Rawalpindi, Sahiwal, Sargodha, Sheikhupura.
NWFP: Abbottabad, Mansehra, Bannu, D.I. Khan, Kohat, Mingora, Mardan, Peshawar. Baluchistan: Quetta, Azad Kashmir: Muzaffarabad, Mirpur.
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Regional Offices
1,195 143 4
Branches Online Branches Subsidiaries
INTERNATIONAL NETWORK
NBP also has branches in USA, Canada, Germany, France, Bahrain, Egypt, Bangladesh, Hong Kong, Japan, South Korea, The Peoples Republic of China, Afghanistan, Azerbaijan Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan and
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Overseas Branches
4 1 1
Representative Offices Subsidiary Joint Venture
PROMOTION
National Bank is actively participating in promotion of its products and services through advertisement and other promotional schemes. Initially, the bank focused on the upper class customers only and offered products for a limited class of people. But now the strategy has been changed and the bank is now targeting the middle market also. The products offered are of diverse nature to cater the needs of maximum number of people .
Customer Oriented Attitude

National Bank values its customers. Customers complaints are encouraged because it gives an opportunity to know the needs of the customer and build more confidence in them. Most of the promotional efforts are done through Direct marketing Public relations
National bank sometimes gets suggestions and recommendations from its good customers.
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Branch layout is being designed in such a way that more and more customers are attracted. Some of the branches of National Bank have a very good entrance and outlook but many still need to be improved.
Departments OF NBP
This is the practical portion of my report and here I will explain different departments of NBP and how these departments work. Following are the main department of National Bank of Pakistan.
DEPOSIT DEPARTMENT ADVANCES DEPARTMENT CLEARING DEPARTMENT BILLS DEPARTMENT REMMITTANCE DEPARTMENT ACCOUNT DEPARTMENT TECHNOLOGY DEPARTMENT
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DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from customers. Following type of deposits are offered by National Bank. 1. 2. 3. 4. 5. 6. 7. Current deposit Saving bank deposit Profit and loss saving account Fixed deposit Short notice term deposit Foreign currency deposit Cumulative deposit certificate (other)
CURRENT DEPOSIT
In this type of account the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposit or with draw several times in the day if he likes. Usually the bank allows this and service chargers are deducted by the bank.
SAVING BANK DEPOSIT

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This type of account is for those persons who want to make small savings. This type of account is opened with Rs. 500. In this case deposits can be made only up to a costing amount and with drawls are allowed twice a week. If the depositors wants to withdraw more than Rs. 15000 a seven days notices is required before the withdrawal.
PROFIT & LOSS SAVING A/C

These types of accounts are one step towards the Islamisation of Banking system in the Pakistan. Under such types of accounts the bank allows no interest to the customers. The executive board of the bank declares profit or loss every year. PLS saving account having a running minimum credit balance of Rs. 100 would be eligible for sharing profit/loss of the bank. The rate of profit or loss on PLS saving accounts shall be determined by the bank at the close of each half year, in its sole discretion and the banks decisions shall be final and binding on the PLS account holder
Fixed Deposit
In this type of account a certain amount is deposited for a certain, period such as sixmonth, two years or longer. A fix deposit receipts is issued in the same of the depositor. The officer incharge and the bank manager sign the receipt. A notice is given to the depositor requesting the depositor to withdraw his money or to renew this deposit. The interest allowed on fixed varies with the period for which the deposits are made.
SHORT NOTICE TERM DEPOSIT

This kind of deposit is for a short period. The depositor may withdraw his deposit at any time by giving seven days notice to the banker. In this type of deposit facility the trader is allowed to withdraw his amount with interest of the deposited period.
FOREIGN CURRENCY DEPOSIT
Foreign currency account is opened by depositing foreign currency. In NBP, you can open foreign currency account in: 1. Us Dollar ($) 2. Pound Sterling () 3. Japanese Yen ()
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4. Deutsche Mark (DM)
CLEARING DEPARTMENT
Every bank acts in two way i.e. 1. Paying Bank 2. Collection Bank Here in theory no legal obligation on a banker to collect cheques, drawn up to other banks for a customer. It is, however, an important function of crossed cheques. A large part of this work is carried out though the bankers clearing house wherever it is established.
CLEARING HOUSE
A clearing house is the place where representatives, of all the banks get together for the purpose of off setting the inter bank indebtedness arising from the transfer of deposits by a customer of a particular bank to another bank.
ADVANTAGES OF CLEARING HOUSE
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The advantages are manifold. It prevents the cost and waste involved in collection each and every cheque and claim. Which a banker holds against another, across the counter with all the danger of loss in the transit incumbent upon it. Great economy is also achieved in the employment of liquid cash by setting the difference by simpler transfer of credit from one account to another, there by minimizing the necessity of holding large wash balances, clearing house works under the control of State Bank of Pakistan. A banker has no legal obligation to collect cheque drawn upon other banks for the customers, though modern banks have assumed this important function of their own choice. Therefore, it is very important that since they have assumed this function, the banker should be very careful in their performance, otherwise they will face more difficulties. So, if they provide this facility when the cheques are crossed.
FUNCTIONS OF CLEARING DEPARTMENT

The following are the main functions of clearing department. 1. To accept transfer deliveries and clearing cheques from the customer of the branch and to arrange for their collection. 2. To arrange the payment of cheque drawn on the branch and given for collection to any other branch of National Bank of Pakistan or any other members, or submembers of the local clearing house.
3. To collect amounts of cheques drawn on members, sub-members of the local clearing house, sent for collection by those National Bank Limited branches which are not represented the local clearing house.
PROCEDURE OF DEPOSITING CHEQUES IN CLEARING HOUSE

Whenever a customer wants to deposit cheque, etc, he fills a pay in slip and hands it over the counter along with the instruments he wants to deposit with bank. As far as possible, the customer desire that on of the staff member fill in a slip for him, he should be obliged promptly.
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The smaller portion of the perforated pay in slip is handed over to the depositor and the portion becomes the regular portion of a credit voucher.
1. Transfer Cheques
Transfer cheques are those cheques, which are collected and paid by the same branch of bank.
2. Transfer Delivery Cheques

Transfer Delivery cheques are those cheques, which are collected and paid by two different branches of a bank, situated in the same city
3. Clearing Cheques
Clearing cheques are those cheques in which the payee (Person who deposit cheques for collection) and the drawer of a cheque maintain the account with different banks.
SCRUTINY OF CHEQUE
When the cashier receives the cheques, which are to be deposited for clearing purpose the following points must be verified. The instrument should be neither stale nor post dated. If the instruments is crossed, not negotiable, it can be for the third party (can be endorsee of an order cheque, or a holder of bearer cheque) The instrument should not bear any unauthorized alteration. The amount in words and figures should be the same. The instruments should be drawn on a member, or any of local branches. If the cheque is crossed Account payees Account payee only or Payees Account, it should be accepted for collection for the payees account. The cheques or drafts should not be crossed specially to any other bank. A cheque payable to one of the joint account holder should not be collected for the joint account without the payees endorsement, or consent. A cheque payable to a firm should not be accepted for credit to a partners account. A cheque drawn by a customer in the capacity of an agent. Attorney, or Manager of his company or firm, should not be collected for credit to his personal account. Pay orders, although negotiable, should not be collected for third parties. Do not collect an instrument in the account of an agent, or of the servant of the payees of endorsee of the instruments.
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Mail transfer Receipts pay ships and treasury receipt should not be collected for persons other than the payee. If an account is new, or the balance or operation of the account is not satisfactory, satisfy yourself about the titles of the customer to the instruments before the titles of the customer to the instrument before accepting the deposit. Brach agents permission should be obtained before accepting a third party cheque or draft for creditor the account of the staff member. If the payee is a government department, government official, or a trust account, the instrument cannot be collected, but of the payees account. If the payee of an instrument is NBP, it can collected for credit of the drawers account, or the amount of the instrument may be utilized as desired be the drawer in writing. Cheque payable to a trust, account should not be collected for credit to at trustee account. All the endorsement should be regular, and on endorsement should be missing. After the cashier scrutinizes the cheques he must also scrutinize the pay in slip.
SCRUTINY OF PAY-IN-SLIP
Following steps are involved in the scrutiny of pay in slip. 1. On both the counterfoil and the pay in slip following should be checked. I. II. III. IV. V. Date of Deposits Account number Title of the account The cheque/number and the drawer bank/name. Total amount in words and figures
2. Customer should use separate pay in slip for transfer, transfer delivery, and clearing cheques. 3. The amount noted should be the same as the amount of the instruments, and the amount in words and figures should be same
PROCEDURES AFTER SCRUTINIZING

After scrutinizing the cheques and other deposit instruments and paying slip at the counter the following procedure is under taken by cashier if he is satisfied.
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1. Fixing the stamp. 2. Scrutiny, and receipt by the authorized officer 3. Returning the counter foil to the depositor. 4. Certificates and confirmation by the officer-incharge of the department. 5. Separating the cheque into transfer delivery, and clearing cheque
PROCEDURE OF CLEARING AT CLEARING HOUSE

The mechanism of setting inters bank indebtedness operates as follows: Clerks representing various banks meet at a common place, The Clearinghouse, everyday. Every clerk then delivers to the others the cheques and the other claims which their respective banks hold against his banks hold against his bank cheques and other documents dishonored will be returned to the representative of the respective bank. The various amounts of receipts and deliveries are now added up and a balance is struck there in and the final settlement is effected by the supervisor of the clearing house by transferring balance kept and the central bank by these various clearing banks.
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ADVANCES DEPARTMENT
INTRODUCTION
The function of advances department is to lend in the form of clean advances, against promissory notes, as well as secured advances against tangible and marketable securities. According to the Prudential Regulations of the State Bank of Pakistan, No bank can issue a clean advance of more than Rs. 100,000/-. The bankers prefer such securities that do not run the risk of general depreciation due to market fluctuations. Common Securities for the bankers advances are as under:
SECURITIES GUARANTEES
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When an application for advance cannot offer any tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant.
MORTGAGE
A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by; way of loan, and existing or future debt, or the performance of an engagement which may rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a mortgage.
HYPOTHECATION
When property in the shape of goods is charged as security for a loan form the bank the ownership and possession is left with the borrower, the goods are said to be hypothecated. The essence of hypothecation is that neither the property in the goods not the possession of them are possessed by the lender, but the security is granted by means of letter of hypothecation, which usually provides for a bankers charge on the hypothecation goods.
PLEDGE
In a pledge the ownership remains with pledge, but the pledgee has the exclusive possession of property until the advance in repaid in full. While in case of the default the pledgee has the power of sale after giving due notice.
PROMISSORY NOTE
Sometimes promissory note is also accepted as a security, A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker, to pay ;on demand or at a fixed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument. A promissory note is incomplete until has been delivered to payee or the bearer. Moreover, the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally.
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KINDS OF ADVANCES
The advances which are given by National Bank are as under:
RUNNING FINANCE (Overdraft)

Running finance (old name overdrafts) is a short term loan allowed by the bank for a period of one year. The running finance account can be operated and daily sale proceeds can be deposited into the account. The mark-up is recovered on the products of daily outstanding balance. The running finance is suitable for meeting day to day financial needs of the business.
CLASSIFICATION OF RUNNING FINANCE 1. Unsecured

Under such type of overdraft the bank pay upon the personal security of the customers mentioned on the customers account.
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2. Secured
Under this type of overdraft the bank allows his customer to withdraw more than his deposits after giving security against the amount overdrawn. The Securities against which they given are: Share certificate, Saving Certificate Deposits Mortgage of property Guarantee of person
DEMAND FINANCE (DF)

Demand Finances are those advances which are allowed in lump sum for fixed period and are repayable lump sum or gradually in installments which could be monthly, quarterly, biannually or annually.
CLASSIFICATION OF (DF) 1. Demand Finance (Packing Credit)

Scheme introduced by SBP for exporter of carpet, surgical instruments, at zero percent rate of interest. While banks provides at concessional rate of interest.
2. Ordinary Loan
Qarz-e-Hasana Scheme Loans are allowed to the students, teachers without any interest or mark up with the recommendation of the MPA or MNA.
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3. Loan for Staff

Loans are offered to the staff of the following categories. House Building Loans against mortgage of property. Loan for purchasing vehicles. Loan equivalent to months salary.
CASH FINANCE (COMMERCIAL LOANS INWARD)

These type of loans are given against following: Against locally manufactured goods. Against pledge Against commodities Against Trust Receipts
FINANCE AGAINST FOREIGN BILLS (FAFB)

This facility is available to both local and foreign bills 1. FAFB (local) advance against Railway receipts and truck receipt, a company with bills of exchange and invoices, are given under this head.
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2. FAFB (foreign) advances against foreign bill covering bills of exchange, bills of lading airway bills of exchange etc.
AGRICULTURE LOANS
Loans to the farmers with holding up to 25 acres for meeting their short term, medium and long term agricultural production requirements, such as: Agricultural inputs Tube Wells Live Stock Framing Land improvements
INDUSTRIAL LOANS
Besides the short-term loans which play an important part in working capital requirements, medium and long-term loans are also given to industrial sector for purchases of machinery and other capital nature goods.
IMPORT EXPORT BUSINESS/TRADE FINANCE

NBP Provides highly efficient trade finance services for import/export business for our clients/customers through large number of authorized branches where trained and motivated staff is available to handle the business on behalf of customer
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BILLS DEPARTMENT
Bills department the following functions: 1. Inward Bills for Collection (IBC) 2. Outward Bills for collection (OBC)
INWARD BILLS FOR COLLECTION (IBC)

These are bills or cheques etc. which is collected locally. These are received from outstation branches banks and parties.
Demand Draft
It refers to the payment of money on demand of the holder of draft. Demand draft includes DD issues and DD payable.
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OUTWARD BILLS FOR COLLECTION (OBC) Clean Bills

These are negotiable instruments, drawn on outstation branches, bills sent for collection on behalf of the customers i.e. cheques, drafts or treasury bills etc.
Documentary Bills
These are bills accompanied by documents such as R.R.T.R. Bills of lading etc. having title to goods, collected by the bankers on behalf of their customers .
PAY SLIP
Pay slip is an instrument in receipt, issued by the bank in the following cases: 1. On account of expenditure incurred by the bank. 2. On account of refund of a payment to a persons under certain circumstances.
PAY ORDER
Pay order is issued to other banks for collection of payments as said.
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ACCOUNTS DEPARTMENT
Usually accounts are maintained in two ways: 1. Journal System 2. Voucher System In journal system entries are posted in Journal Books and then posted to ledger. It is adopted by industrial institutions. Voucher system is use for every transaction. Voucher has to be prepared either in cash or in transfer or in clearing. The sheet upon which these vouchers are summarized transactions-wise and consolidated into a figure is called supplementary.
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Types of Supplementary
Supplementary are of two types: 1. Debit Supplementary 2. Credit Supplementary Debit Supplementary is used for debit voucher and credit supplementary is used for credit voucher books.
BOOKS AND REGISTERS

Books and registers used by bank are as follows: General ledger Ledger of A/Cs Balance Book (for a/c ledger) Token Book Cashier Long Book Cash Order Register (SND, DAC & Pay order is recorded) Daily Transaction Long Book Day Book Transfer Book Open/Close Register Pak A/C Book
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Suspense A/C Book Weekly Telegram Book (Cost is written) T.T. Issued Register T.T. or Telegraphic Transfer Payable Register D.D. Issued Register D.D. or Demand Draft Payable Register Law Charges Recoverable A/C Book (under suit account) Office Order Book P/L Income and Expenditure Accounts Book P/L Balance Book for Income and Expenditure A/C (weekly balances of expenditure A/C are recorded) Cheque Book Issue Register Stock Register Cheque Books in hand PLS (TDR) Term Deposit Register Stationery in Hand Register OBC (Outward Bills for Collection) Register Dak Inward Register Dak Outward Register Stationery in Hand Register
Cash in Transit Register Clearing Register Inward/Outward Running Finance Register Office Attendance Register
INCOMES
Income Includes 1. Brokerage (A bank sells and buys shares, stocks, debentures, other securities and receives payments for these services) 2. 3. 4. 5. Discount Service Charges Rent (On Building) Commission (from utility services)
EXPENDITURES
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Expenditures Includes 1. 2. 3. 4. 5. 6. Salaries, allowances and provident fund Rent, taxes, insurance, lighting etc. Profit paid on deposits and borrowings Postage, telegram, and stamps Stationary, printing and advertisement charges etc. Auditors fee and legal charges
REMMITTANCES DEPARTMENT
Remittance department performs following functions: 1. Mail Transfer 2. Telegraphic Transfer 3. Demand Drafts (MT) (TT) (DD)
MAIL TRANSFER (MT)
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When a customer requests the bank to transfer his money from one branch of bank to another branch of the same bank or from one city to another city to the same bank or any other bank. Customer fills the form given by bank. If the customer has an account with that amount as mentioned in the application form then concerned officer will undertake the following procedure to make the mail transfer complete. 1. 2. 3. 4. 5. Branch Mail transfer form Receiving Branch Register copy Issuing branch register Copy beneficiary advice advice to customer
In case where the customer is not account holder of the bank then the customer will have to deposit the amount which he wants to transfer under Mail. Then the above said procedure will be done.
TELEGRAPHIC TRANSFER (TT)

This type of transfer is simple. After filling the application form the concerning officer shall fill the telegraphic transfer form. Then it is sent to the required bank which on receiving it immediately makes the payment to the customer and afterwards the voucher are sent to that bank by ordinary mail.
DEMAND DRAFT (DD)

Demand draft is just like cheques and issued when the customer wants to take cash with him personally. The idea behind is to avoid the risk and burden of currency notes in huge quantity. Demand draft can easily be handled whatever amount it has and the money can easily be taken from the bank when it is presented. In fact, the bank persuades the customer to transfer money by drafts and avoid the risk of frauds involves in MT and T.T. Draft is only issued when the bank knows customer and bank has the confidence in him In case of transfer of money by drafts, the customer has to fill an application form. Then the concerned officer fills the following forms:
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1. 2. 3. 4.
Customers advice Customers debit form Register copy Cover Advice
A foreign bank uses the cover advice if draft is issued to National Bank of Pakistan.
FOREIGN DEMAND DRAFT

Foreign Demand Draft is just like demand draft. The only difference is that a bank issues FDD to the bank of another country. It requires foreign exchange and it involves seven forms, which are to be filled.
TECHNOLOGICAL DEPARTMENT
Technological advancements are also affecting the banking industry. The foreign banks have a competitive edge over all local banks in their technologies'
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advancements and automated systems. Local banks have also realized the gravity oil this situation and are striving to add computerized systems to their branches NBP is now fully concentrated on it. There are more than 1242 branches of NBP all over Pakistan and out of these more than 143 branches are fully computerized Almost all .the branches of big cities are computerized; therefore, the need for a technology department at each branch is growing. Now a day, a computer division is working in each city to provide service to ad the branches of that area. ATM system is also introduced in many branches in major cities. Following is the brief description of these ATM machines.
NBP ATM NETWORK

CITIES
1. Burewala 2. Faisalabad 3. Gujar Khan 4. Gujranwala 5. Gujrat 6. Hyderabad
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NUMBER OF ATMS
01 06 01 04 01 06
7. Islamabad 8. Karachi 9. Lahore 10. Mirpur 11. Multan 12. Muzaffarabad 13. Peshawar 14. Quetta 15. Rawalpindi 16. Sheikhupura 17. Sialkot 18. Taxila 19. Wah Cantt
16 21 13 02 04 03 04 04 05 01 03 01 01
DEPARTMENTS OF Internship
During the internship period of 6 weeks I got training in various departments in the branch. Government Department Credit Department HR Department Foreign Exchange departme
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Work Done By Me 1st week

1 serve whole day in Govt. dept. and see what type of work is done in this dept. This department has 2 sub sections. 1. All Govt. Collection Passport fee Agriculture tax Property tax Domical fee Token fee Utility Bills FBR Income Tax Sale Tax Excise Tax 2. All Govt. Payments Pension payments Provisional Federal Railway
July 23-Monday
2nd day I worked in Govt. dept. He told me that this section performs the most important job of customer dealing. Than I filled the GOVT. DEBIT SCROLL and GOVT. CREDIT SCROLL all of the day. In GOVT. DEBIT SCROLL entered data all of the Govt. Payments separately (like Provisional Federal, Railway) In GOVT. CREDIT SCROLL entered data of the all of the Govt. Collection separately (passport, FBR).
July 24-Tuesday
3rd day I worked in Govt. dept. same like 2 nd day. And I filled 12 scroll of different category (Provisional, Federal, Railway passport, FBR) . We can enter 30 vouchers in the 1 scroll and take original scrolls for attachment with final report.
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July 25-Wednesday
4rd day I worked in Govt. dept. And learned to fill the cheque.
July 26-Thursday
6th day I didnt do any work.
July 27-Friday
Again they didnt give me any work.
2nd week
This was my eight day in NBP. I reached there before time. This week again I work in Govt. dept. but didnt give me any work.
3rd week
August 6-Monday
This was my 1st day of the 3 rd week in NBP. I reached there before time. I met with the manager. The manager sent me to the credit department. Credit department has two sub sections namely; 1. Retail section 2. Advance section I attached with Miss Tehmina Batool. She is the credit officer in the credit department. She tell me about the credit department.
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August 7-Tuesday
Second day of 3rd the week, Miss Tehmina told me about the Retail section that this section works for retail banking. He told me that this section operate three function namely; 1. NBP SAIBAAN 2. NBP KAROBAR 3. NBP ADVANCE SALRY In SAIBAAN the national bank of Pakistan gives loan to general people (businessmen or salaried person) for home construction, home improvement, home purchase and land and building. In NBP KAROBAR the national bank of Pakistan gives loan to general people neither businessmen nor salaried person) for transport like Rickshaw, Chand Gaari, and this loan up to RS.70000 only. And NPB gives loan for Tele centre up to RS.650000. And for Utility store up to Rs.200000.
August 8-Wednesday
Third day of the 3nd week in the NBP, Miss Tehmina told me about NBP advance salary. NBP gives up to 20 month advance salaries to GOVT. employees and Semi GOVT. employees also. But NBP preferred GOVT. employees. And this loan gives to only permanent Govt. employ not contract based employee. And here is a reference also compulsory. And I was updating the account holder name.
August 9-Thursday
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Fourth day of the 3rd week in the NBP, Miss.Tehmina said me about BCIL (business credit information limited). This institute is provide the worthiness about the customer and told all information about customer/creditors to the bank. Example: suppose I want to give loan from NBP. And I provide all information to bank. Bank will send all information to BCIL. And then BCIL will check all information and send report to bank. Than bank pass the loan. And told me that we offer 5 types of loan namely; 1. Cash Finance 2. Running Finance 3. Demand Finance 4. Agriculture Finanace 5. Staff loan (entertained by H.R manager. And told me about Security, she said security has 2 types; Primary (stock) and Secondary (mortgage , land & building)
August 10-Friday
6th day of the 3rd week, Madam told me about all 5 types of loan. Cash Finance: it has two types Hypothecation in which customer can use his property but charge of property with bank. And in Pledge position and charge of property both property of bank. And charge 13 to 14 % interest. Running Finance: madam told me that under this, NBP offers TDR (term deposit receipt), Cash margin, DSC (defense saving certificate). And bank interest charges annually.
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Demand Finance: in the demand finance NBP offer more than 3 years loan Agricultural Finance: they are purposive, long term, seasonal.
4th week
August 13-Monday
This week again I spend in Credit department with Miss Tehmina.
5th week
August 27-Monday
I spend my 5th week with Hr Manager who is very nice and polite person Today I have prepared Liability statements of 3 officers and also make salary amendments At the end I prepare sheet of HBF (house building Finance)
August 28-Tuesday
Today I have completed my pending work of HBF sheet it takes a whole day and at the end I got appreciation from HR manager.
August 29-Wednesday
Today I fill the medical bills & TA bills and make letters of provident fund directed towards Regional office.
August 30-Thursday
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Today I performed additional duty with CFO(customer facilitation officer) Whole day I have spend filling slips of cash & checques
6th Week
My last week is continue and this week I am in Foreign Exchange Department with Mr. Afzal
ISSUES FACED BY THE BRANCH

During the internship I got practical experience. I present here some critical analysis: i. ii. iii. Training: NBP has no great facility for their employees for training of new technologies. This situation creates difficulty for handling new challenge. Departmentalization: An employee deals various nature of work. Staff Attitude: Due to heavy load of work staff attitude does not ideal for an organization where public dealing is at large scale.
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iv.
Work Environment: Work environment was not ideal due to heavy customers visit in a single day. Furniture, light and sitting arrangement was not good for customers and bank employees. Professional Approach: Work specialization and job specification are found very low in banks employees. Business administration qualities and education is at low side. Shortage of Staff: There is shortage of staff in the Bank. Number of customer per employee is very high. Cash department is suffering very badly and facing great deal of over workload. Less use of Technologies: Staff hesitates to use new technologies especially the cash department. Even old employees are not able to operate PCs. Communication Gap: I feel that there is communication gap between top management and workers. They have fewer chances to communicate effectively. Unjustified Appraisal Criteria: No justified appraisal criteria are implemented for annual increase in salary and promotion of staff. It creates un-satisfaction among the employees of the Bank. Undemocratic Decision Making: I observed that sometimes employees are not involved in decision-making process. Manager himself takes decision and orders to make changes.
v.
vi.
vii.
viii.
ix.
x.
FINANCIAL ANALYSIS
The financial statement of any organization shows the results of its operation and its position in business. It is a process which involves reclassification and summarization of information through the establishment of ratios and trends. The
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overall objective of financial statement analysis is the examination of a firms financial position.
Horizontal analysis
Through this analysis we can check that what are changes with in years in the items of balance sheet and profit and loss account. Last year become base for next year. And change can be easily analyzed.
Vertical analysis
In vertical analysis of balance sheet the percentage of each item of statement is calculated to total and then the change in the percentages is checked with in years.
Balance Sheet Assets 2011 Rs in 000
Particulars
2010
2009
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Cash and balances with treasury banks Balances with other banks Lendings to financial institutions - net Investments - net Advances - net Operating fixed assets Deferred tax assets net Other assets - net Total
115,442,360 30,389,664 23,025,156 301,323,804 477,506,564 26,888,226 6,952,666 53,496,240
115,827,868 106,503,756 28,405,564 38,344,608
19,587,176 17,128,032 217,642,822 170,822,491 475,243,431 412,986,865 25,147,192 24,217,655 3,062,271 59,666,438 3,204,572 44,550,347
1,035,024,680 944,582,762 817,758,326
Vertical Analysis of Asset Side

Items Cash and balances with Treasury Bank balances with the other banks Lending to financial institutions Investments Advances Operating Fixed assets Deferred Tax assets other assets
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2009 13.02 4.69 2.09 20.89 50.50 2.96 0.39 5.45
2010 12.26 3.01 2.07 23.04 50.31 2.66 0.32 6.32
2011 11.15 2.94 2.22 29.11 46.13 2.60 0.67 5.17
Total Assets
100.00 100.00 100.00
Horizontal Analysis
Items Assets Cash and balances with Treasury Bank balances with the other banks Lending to financial institution s Investmen ts Advances Operating Fixed assets Defered Tax assets other assets Total Assets
2006
2007
2008
2009
2010 Spee d 46.83
Directio Nature n Favorable
100
20.67
35.46
47.32
37.57 Upward
100
-7.80
-5.65
-30.11
-25.23
-17.20 Downwa rd -11.78 Downwa rd 60.94 Upward 34.93 Upward 163.8 Upward 3 53.13 Upward 74.00 Upward 40.11 Upward
Unfavora ble Unfavora ble Favorable Favorable Favorable Favorable Favorable Favorable
100
-6.73
-25.57
-14.89
0.05
100 100 100 100 100 100
50.88 7.66 167.74 0.00 14.31 20.01
22.06 30.65 150.1 3 100.0 0 64.31 28.75
55.52 50.34 159.7 3 -4.44 120.0 6 48.72
115.3 1 51.06 177.7 1 116.9 6 97.30 62.96
Income Statement for last 3 years

Income Statement
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Particulars Mark-up / return / interest earned Mark-up / return / interest expensed 2 Net mark-up / interest income Provision against non-performing advances-net Provision for diminution in the value of investments-net Provision against off balance sheet obligations Bad debts written off directly Net mark-up / interest income after provisions
2011
2010
2009
88,472,134 77,947,697 60,942,978 45,250,476 40,489,649 23,884,768 43,221,658 37,458,048 37,058,030 7,011,046 2,954,678 3,965 9,969,689 11,043,469 10,593,565 605,629 373,249
20,237 4,000 11,669,335 10,970,814
33,251,969 25,788,713 26,087,216
Vertical Analysis of Income Statement
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Horizontal analysis Particulars Mark-up / return / interest earned Mark-up / return / interest expensed 2 Net mark-up / interest income Provision against non-performing advances-net Provision for diminution in the value of investments-net Provision against off balance sheet obligations Bad debts written off directly Net mark-up / interest income after provisions 2011 100 51 49 8 3 0 11 38 2010 100 52 48 14 1 0 15 33 2009 100 39 61 17 1 0 18 43
Horizontal Analysis of Income Statement

79
Particulars Mark-up / return / interest earned Mark-up / return / interest expensed 2 Net mark-up / interest income Provision against nonperforming advances-net Provision for diminution in the value of investments-net Provision against off balance sheet obligations Bad debts written off directly Net mark-up / interest income after provisions
Vertical analysis 2011 2010 2009 100 100 100 100 100 100 100 100 127.9 169.5 101.1 104.2 162.3 505.9 106.4 98.9 145.2 189.5 116.6 66.2 791.6 99.1 90.9 127.5
Speed Nature 15.1 29.8 5.5 -11.3 230.5 -0.3 -3.0 9.2 Fav Fav fav unfav fav unfav unfav fav
RATIO ANALYSIS
80
Ratio analysis includes method of interpreting financial ratios to access the performance of any organization. The basic input to ratio analysis is profit and loss account and balance sheet. Ration analysis of any organization is in interest of its creditors, employees, shareholders and of its management as well. Both existing and prospective customer are interested in the ratio analysis of organization Ratio analysis is a valuable aid to management in the discharge of its basic functions such as planning, forecasting, control etc. these ratios describe the relationship with the functioning of the business and helpful for controlling cost of goods manufactured. The great advantage of ratio analysis is that it reduces raw data of widely varying magnitude to a common comparative basis. Thus, ratio analysis is the most meaningful to compare financial information regarding a giving company.
Financial Ratios
81
Bank special Ratios

Earning assets to total assets Return on earning assets Net margin to earning assets Deposit time equity Loan to deposit ratio Equity to total assets
General Analysis
Profitability ratio
Return on total assets Return on-equity
Leverage ratios
Debt to Equity ratio
Investor Ratios
Dividend Yield ratio P/E ratio
Earning Assets to Total Assets

82
Formula:
Items Earning assets Total assets Ratio
2010 741404399 946253269 78.35%
2011 833759792 1038018467 80.32%
Comments: This ratio shows how well bank management puts bank assets to work . Earning Assets of Bank this year is increases and it is favorable for Bank. This shows that the banks management is utilizing banks assets efficiently
Return on earning assets
Items Pretax Income Earning assets Ratio Comments:
2010 21198842 741404399 2.86%
2011 24622287 83375792 2.95%
Return on Earning assets have increased in 2011 and it is favorable for bank. As Return on earning assets is increased as compare to previous year. This increasing trend in this ratio is beneficial for business and investors because this ratio shows real profitability position of business.
Net Margin to Earning Assets

Items Net Margin
83
2010 37373505
2011 43511637
Earning assets Ratio
741404399 5.08%
83375792 5.22%
Comments: This ratio shows the *spread position of a bank. In this year bank net margin is decreased. Spread position of bank is thus increased in this year. * Spread is difference between interest income and interest expense
Deposit time Equity
Items Deposits Equity Ratio
2010 727513013 120792552 6.02 Times
2011 832134054 131298832 6.34 Times
Comments: . This shows how much outsiders share in business total . This ratio is also known as debt to equity ratio. Lesser ratio is better for a business and this year bank ratio is increasing which shows a negative trend as compare to previous year
Loan to Deposit
Items Loans
84
2010 523808362
2011 832134054
Deposits
Ratio
727513013
0.64
131298832
0.72
Comments: Lesser ratio shows the better solvency of bank .This ratio shows decrease in loan to deposit. It means in this year there is less mobilization of deposit into loan. It is Unfavorable.
Equity capital to Total Assets

Items Equity Total assets
Ratio
2010 131298832 946253269

0.1265
2011 120792552 1038018467

0.1277
Comments: In this ratio equity to total assets are decreased for this year. Equity are not fully utilized to convert into assets.
General Analysis
Return on Assets
85
Items Net profit Total assets

Ratio
2010
17449042
946253269
1.84%
2011 17738405 1038018467

1.71%
Comments: This ratio has decreased. It means the assets of the business are not fully utilized in more and efficient way and also shows no favorable trend of the business. So the management is not utilizing the resources efficiently and there is need toutilise the assets more efficiently and effectively so that the profit can be increased . Management is required to make efforts for this.
Return on equity
Items Net profit Equity
Ratio
2010
17449042
120792552
14.45%
2011 17738405 131298832

13.51%
Comments: This ratio is more meaningful to the equity shareholders who are interested to know profits earned by the company and those profits which can be made available to pay dividends to them. Higher the ratio, better the results. This ratio decline in the year 2011 which is not good for bank in such an intense competing environment.
Debts to equity ratio
Items Equity Debts

Ratio
2010
120792552
825460717
6.83
2011 131298832 906719635

6.91
Comments
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It is also known as external internal equity ratio. It is determined to ascertain soundness of the long term financial policies of the company. Debt-to-Equity ratio indicates the relationship between the external equities or outsiders funds and the internal equities or shareholders funds. The NBPs Debt to Equity ratio shows a negative trend as compare to past.
Dividend Yield Ratio

Items Dividend/Share Market Price/Share
Ratio
2010
7.5
74.37
10.08%
2011 6.5 76.82

8.46%
Comments Dividend yield ratio is the relationship between dividends per share and the market value of the shares. Indicates future dividend payments might actually be higher than the current dividend payments
Price Earnings Ratio

Items Market Price/ Share Earning/ Share
Ratio
2010
76.82
12.97
5.93
2011 74.37 13.24

5.62
Comments Price earnings ratio (P/E ratio) is the ratio between market price per equity share and earning per share.
87
Price Earning ratio of NBP, as compared to 2010, fell in 2011 which is a negative sign and management should unleash the causes
88
SOWT ANALYSIS
SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organizations internal strengths and weakness as well as its environment opportunities and threats. In SWOT analysis the best strategies accomplish an organizations mission by: Exploiting an organizations opportunities and strength Neutralizing it threats Avoiding or correcting its weakness SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.
STRENGHTS
Largest financial institution NBP one of the largest financial institutions of Pakistan with eight million of customer base NBP holds 24.6% share of time and demand deposits in the country. Local currency deposits comprise 67% of bank's total deposits while foreign currency deposits account for the rest. Extensive branch network NBP has an extensive domestic branch network of 1254 branches located all over Pakistan. The Bank also has a presence in 23 international locations including the USA, United Kingdom, Europe and the Far East.
85
Right arm of Government NBP is working as right arm government of Pakistan as it is responsible for all claims of government for recovery as well as payment. All depositor of NBP are in relief that their money security is guaranteed by government of Pakistan. Act as an Agent It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch. Working Conditions The working condition in the NBP branch here is very conductive and favorable for better output. The informal environment affects the performance of the employees in a positive way. Social Responsibility Performing social responsibilities and claiming The Nations Bank Additional Services Disbursing Salaries and Pensions to the Government employees and earning high profit on NBP-Advance Salary Loan Scheme Commission Earning commission from SBP on Government transaction Large Pool of Deposit Facing never problem of cash/currency being its Chest and Sub-chest Holds largest deposit base in the market share in terms of number of accounts Agriculture Financing Leading bank in agriculture financing amongst commercial banks with the market share of 15%
86
Earnings Helping in earning of foreign exchange, remittances and leading agent of Western Union Money Transfer NBP has decided to diversify the fund base by investing in capital markets not only in Pakistan but also in the foreign countries.
WEEKNESSES
Low internal Control Lowest Internal Control and Compliance System, SBP rated Marginal which is alarming for the Bank. Unsatisfactory Corporate Culture Unsatisfactory corporate culture of the Bank Unfavorable Environment Physical environment and atmosphere compare to other banks is not meet the standard Lack of Technology Lack of effective technology. Less number of Online Branches Shortage of Employees Shortage of staff- per employee customer is very high side Insufficient Training Technical education and training of staff is insufficient The workload in NBP is not evenly distributed and the workload tends to be more on some employees while others abscond away from their responsibilities, which server as a demotivation factor for employees performing above average work.
87
Individual Differences In NBP the individual difference have strong impact on the organizations performance due to the wrong criteria of selection of the employee. So with the passage of time individual differences are increasing which are undermining the good will of the organization. Uncertainty Uncertainty among the employees due to threat of downsizing
OPPORTUNITIES
Wide Scope Being a Government Bank NBP having wide scope in economic market. Profitability Trust and reliability creates chances to enhance deposit and profitability. Expansion in Business Its vast network of domestic and overseas branches can help to expand business. Enhancement of Investment Banks deposit is increasing rapidly so there is a great opportunity to enhance its investment and financing. Local Economy Being an agent of State Bank of Pakistan it can play vital role in local economy. Among Largest banks of ASIA Amongst highest bank is Asia, NBP further expand its services proudest and earn more profit.
88
Growth & Development The bank is reshaping its portfolios by investing into higher area of growth developing core competing as a result to get maximum return. Information technology & Human resource I.T and HR are important factors for development in any organization, NBP continue struggle to achieve this target.
THREATS
High Penalties SBP penalties due to low internal control and compliance. Govt. Policies Day to day change in the Government, SBP and Prudential Rules and Regulations are also one of the threat faced by the bank Large no of Banks Due to large no of Schedule banks bank has more threat of loosing the customer Turn over Its staff switching over to other private banks due to more facilities. Working Environment Other banks charming atmosphere and relaxation in documentation. SBP ratings SBP rated just Marginal in respect of System & Control which is alarming for the Bank to survive its license.
89
High no of complains High number of complaints regarding staff behavior is also a threat for the bank. Work Load Payments and FBR Collections create heavy workload.
PEST ANALYSIS
It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political: Privatization policy and deregulation. Impact of subsidized credit affecting and NCBs. Employment practices, Unions, Associations. Political Interference and harassment.
90
Incidents of high taxation on banking industry. Economical: Constraints in mobilization of public savings because of inflation. Staff cost. Operating cost. Bad debts Social & Cultural: Inadequate human resources. Cultural strain to savings. Defaulters lobby. Declining education and work ethics. Inadequate accountability. Adequate empowerment. Technological: Inadequate communication infrastructure. Inadequate computer facilities. Inadequate IT training
91
SUGGESTIONS & RECOMMENDATIONS
Although NBP is included in ten top most banks of the world equity as well as assets wise. But for the further improvement in various sectors my recommendations to the bank would be as follows: NBP should become very specific about its competitors, so that it can understand who its competitor is in the first degree and who is in the second degree. closely A research cell should continuously try to gather information about the present action so its competitors and expected future actions. So in this way more effective strategies can be formulated. The performance reward linkage should be making strong as it is said, "A happy employee delivers more than he receives from the organization." The NBP should also try to make its employees happier. There is immediate need, to reconstruct the personnel policies. Selection should be through newspaper advertisements. In this way more intelligent, efficient and qualified staff can be formulated. It is strongly recommended that NBP should go for computerization rather than manual work, which is very slow and time, consuming process. In this age NBP even does not have a partially computerized system where as Then the first-degree competitors should be watched
92
other new competitor banks are now going towards on-line banking services. Govt. should take keen interest to recover its bad debts, which can improve its financial position. In case of giving the loans, it is necessary to check the repute of customer towards loan repayment. Bank shouldnt advance the money to those people who are addict of rescheduling of loans due to their political influences. Instead providing loans to these persons, loans must be advanced to the well-reputed businesses and industries having good record of loan repayment. Along with the officers, the training must also be given to the clerical staff. Because of NBP are running on manual system and the training of its staff directly improving their efficiency of work. Working conditions must be improved for the employees. Bank will definitely get more benefits after some expenditure on the working conditions as it improves efficiency and productivity of the employees. NBP should flourish certain marketing plans to attract the customers by giving them certain incentives and beneficial schemes to the customers as other competitor banks are doing so. There is also a need of proper recruitment and selection program. New young talent should be introduced to inject the new ideas. Deterioration in efficiency is mostly due to promotion without merit. So promotions must be awarded on merit and also when due. Special attention should be given to the behavior of the employees towards the customers, as customer is the most important person for any bank.
93
There are many employees who are working on ad-hoc basis creating dissatisfaction. The deserved should be made permanent employees.
Political influences in the bank should be eliminated. To motivate the employees of the bank, regular bonuses and incentives should be given to them. There must be a friendly environment among all the employees as it enhances the trust and sincerity.
NBP should be focusing its attention towards the share of traveler cheque.
Branch manager should be trained in the field of selling to serve better according to the expectation of customers.
The recruitment policy should be fair and transparent.
Management should increase the branch limit of expenditure to fulfill the necessary expenditure of personnel.relation.
94
CONCLUSION
The report is all about National Bank of Pakistan, one of the leading banks of Pakistan banking industry. National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance 1949. The primary objective of NBP was to purchase jute from the growers in the former East Pakistan and also to perform the commercial banking functions in the country. It is a part of State Bank of Pakistan and it is its major strength. It is providing different facilities to its customers. 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. Its Human Resource is its major strength that is leading this bank in this way but there is much gap to cover yet. The other strengths this bank has are that it is acting as Agent of State Bank of Pakistan, providing Agency Arrangements for different government organizations include WAPDA and PIA, Profitability and a vide coverage throughout Pakistan through its Corporate Branches. And also it has comprehensive range of products it is offering in market. The challenge it is facing are currently the lack of implementation of rules and regulations that may lead to weak organizational culture, old organizational
95
culture, no regular promotions practices and not much use of IT technology in bank as other are using. There are many workers and employees unions exist in National Bank of Pakistan that use to play organizational politics instead of doing productive work that leads to wastage of time. As analysis shows that NBP is a most growing organization with highest return on capital, largest market share amongst all Pakistani banks and cost to income ratio is the highest in banking sector. But there is further need for improvement to overcome weaknesses and to maintain its position as an Asian Tiger in banking field. As far as my internship and experience is concern, I learnt a lot during my internship because 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 different procedures followed by banks, the organizational culture and structure of the bank, National Bank of Pakistan.
96
BIBLIOGRAPHY
History of NBP, http://www.nbp.com.pk/EcomomicBulletin/FS-Complete- 3112-2010pdf, 24 July 2012, 6:00 p.m NBP Annual Report September 2011 About organization, http://www.nbp.com.pk/nbp/About_Us/About_US.jsp, 24 July 2012, 6:30 p.m. Products,http://www.nbp.com.pk/Aamdani/index.htm, 27 July 2012,11:00 p.m. Premium,http://www.nbp.com.pk/Premium/index.htm,27 July 2012, 11:00 p.m. Saibaan, http://www.nbp.com.pk/Saibaan/index.htm,27 July 2012,11:00 p.m. Advance salary, http://www.nbp.com.pk/advancesalary/index.htm, 10 august 2012,11:00 p.m. Cash n Gold,http://www.nbp.com.pk/CashnGold/index.htm, 10 august 2012,11:00 p.m. Student loan, http://www.nbp.com.pk/StudentLoan/index.htm. 10 august 2012,11:00 p.m. SBP Prudential Regulations Price, http://www.nbp.com.pk/nbp/NBP_Treasury.jsp, 20 august 2012,11:30 p.m. Services, http://www.nbp.com.pk/nbp/Treasury_Products.jsp, 27 August 2012,11:30 p.m. Departments,http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp, 30 August 2012,11:30 p.m. Management,http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp, 31 August 2012,11:30 p.m.
97
Glossary
A
Asset: Any tangible item of economic value owned by an individual or Corporation
B
Bank: Place of accepting deposits and advancing loans
C
Cheque: A negotiable instrument to pay a specific amount Credit card: A plastic card having authorizing the holder to buy goods or services on
Credit
D
Departments: The entities organizations form to organize people, reporting
relationship. And work in a way that best supports the accomplishment of the Organizations goals.
Demand draft: A method used to make transfer payments from one bank account to
another.
Debit card: bankcard used to make an electronic withdrawal from funds
E
Earning assets: interest-bearing accounts, bonds, and securities available for sale
98
Equity: Ownership interest in a corporation in the form of common stock or

Preferred stock.
F
Financial analysis: Analysis of financial statements Finance: Art and science of managing money
I
Internee:
an individual gets practical knowledge by working temporarily as an Employee in any business enterprise
L:
Liabilities: obligation of an entity arising from past transactions or events Leverage: Degree to which an investor or business is utilizing borrowed money.
M
Mobilization of funds: To put into movement or circulation of funds
O
Circumstances
Opportunity: A favorable or advantageous circumstance or combination of
P
Profile: A record of user-specific data Portfolio: A collection of investments
R
Remittance: Process of sending money to remove an obligation. Retail:
sale of goods to end users
99
S
Syndicated Loan: loan offered by a group of lenders to a single borrower. Stake holder:
Person, group, or organization can affect or be affected by the
organization's actions, objectives, and policies.
100

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INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

PROF. HAFIZ IMRAN

UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

Serial No 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Acknowledgement Dedication

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTRODUCTION OF THE STUDY

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

Purpose of the Study

Scope of the Study

Methodology of the Report

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

Observations Discussions with Bank officers

Manuals Annual Reports Information Memorandum Internet

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

BANKING SECTOR IN PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

ROLE OF BANKING IN PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

FUNCTIONS OF BANKS IN PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

COMMERCIAL BANKING IN PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

PHASES OF BANKING IN PAKISTAN

FIRST PHASE (1947-74)

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

SECOND PHASE (1974-1979)

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

THIRD PHASE (1979-91)

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

FOURTH PHASE (1991-2000)

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

BRIEF HISTORY OF NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

We aim to be an organization that is founded on

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

We aim to be people who

We have confidence that tomorrow we will be

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

Vision and Guide

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

We aim to be an organization that is founded on

We aim to be people who

We have confidence that tomorrow we will be

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

AIMS & OBJECTIVE OF BANK

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

New Management Structure

TRAINIG and MANAGEMENT DEVELOPMENT WING

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

MANAGEMENT OF NATIONAL BANK OF PAKISTAN

Qamar Hussain Chairman&President

Mr. Tariq Kirmani Director

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN