A project OF Management of

NATIONAL BANK OF PAKISTAN

Submitted by:
Kashif Mehmood (0!A"I#!$0%
University Institute of Information Technology
( U A A R )
$
Internship/mployment Report
(!"#$)
Internship "eport
Bache&or of B'siness Administration Program
Name(Kashif Mehmood
"eg) No)( 0!Arid!$0
Specia&i*ation( +"
Te&ephone( 0,,-!.-0,-/
0!Mai&( 1ashipppp23ahoo)com
4ni5ersit3 Instit'te of Management Sciences
4ni5ersit3 of Arid Agric'&t're "a6a&pindi
7ompan3 Name( Nationa& Ban1 of Pa1istan Ind'stria& area Branch Is&ama8ad ($.,$%
Main Te&ephone N'm8er(s%(0.$!9.:/;9!;,
Fa< N'm8er( 9.:/;$
Posta& Address( Nationa& Ban1 of Pa1istan Ind'stria& area 8ranch Is&ama8ad
S'per5isor Name( Kha&id Mahmood A88asi(Manager Operation%
S'per5isor Te&ephone N'm8er(0,0:!.$/,;:;
Start #ate for Internship( $0 j'&3 90$9
0nd #ate for Internship( $; a'g'st 90$9
"eport #ate( 9$ fe8 90$,


9
Evaluation
KAS+IF M0+MOO#
completed internship at
=Nationa& Ban1 of Pa1istan ind'stria& area Branch Is&ama8ad>
Internship report s'8mitted for the Fina& 05a&'ation in
Partia& F'&fi&&ment of the re?'irements for the #egree of

=Bachelors in Business Administration>
It is certified that, the Internship report and the work contained in it conforms to all the
standards set by the Institute for the evaluation of any such work.

University Institute of Management
Sciences
,
#%
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= Signat're >
= A&i +aider >
= Signat're >
= +afi* +afee*
>
= Signat're >
= Irfan!'&&ah
M'nir >
& ' ( A R A T I ) *
I@ st'dent of 4ni5ersit3 of Arid Agric'&t're "a6a&pindi so&emn&3 dec&are that the 6or1
presented in this report is m3 origina& 6or1 and no portion of it has 8een s'8mitted for an3 other
degree of ?'a&ification to this or an3 other 'ni5ersit3 of &earning)
-
A C K N O W L E D G E M E N T
A&& praise is to ALLA+ ALMIA+TB@ for gi5ing 's 1no6&edge@ insight@ de5otion and strength
to accomp&ish this tas1) 6e immense&3 than1f'& to a&& the teachers and friends 6ho he&ped me to
comp&ete the project) I am gratef'& to the staff of NBP as 6e&&@ 6ho s'pported me &ot d'ring this
project and pro5ided comprehensi5e 1no6&edge of their prod'cts and ser5ices and 8an1ing
practices) Specia&&3 S3ed +ammad "a*a Na?5i@ Branch Incharge 7A#@ NBP 7i5i& Lines Branch
Che&'m D S3ed M'hammad Fa1hir +assan Na?5i@ 7omp&iance Officer@ NBP 7i5i& Lines Branch
Ch&e'm) Their g'ide&ines ha5e &ead 's to disp&a3 a pict're of NBPEs Management in this report)
In the end I 6o'&d &i1e to than1 a&& of m3 friends and fami&3 mem8ers for their s'pport and
enco'ragement)
.
+R,A'
Ban1ing sector pi5ota& importance in the econom3 of an3 co'ntr3 thro'gh its
5i8rant f'nctions) Moreo5er@ the practice and fami& iarit 3 &earned d'ring this
ten're 6o'&d a&so attest 5er3 he&pf'& and a&&e5i ating in the a6aiting proficient
&ife)
This report is an 'pshot of m3 si< 6ee1s internship in NBP) NBP possess
an imperati5e and historica& i mportance in the 8an1ing sector of Pa1istan) It
a&6a3s remains the center of h'st&es in 8'siness acti5it ies) It a&6a3s endo6s
6ith great co5enant of rea&& 3 ro'nd in terms of f'nds and ser5ices at a&& epochs
of its d3nami sm)
A&tho'gh@ a derisor3 period of si< 6ee1s is not eno'gh to &earn the
comp&e< operations of NBP 3et I made ind'strio's efforts to con5erse them
comprehensi5e& 3 in this report) Partic'&ar& 3@ I ha5e rem'nerat ed more accents on
st'd3 of disting'ishing feat'res and ser5ices of NBP) I ha5e made ma<i m'm
5ent're to e&a8orat e this report 6ith the mat eria& read@ &isted and o8ser5ed)
#ear readers@ I hope 3o' 6i&& appreciate m3 report and sense that reading m3
report is not &i1e to 6aste the time in an3 respect 8eca'se of the fo'r principa&
reasons as 'nder(
I ha5e made $00F rea&istic attempt to pro5ide 3o' the e<act information
a8o't NBP)
A&& the terms ha5e 8een e<p&ained caref'&& 3 in a simp&e and
comprehensi5e 6a3)
This report is 6ho&&3 'p to date@ e?'ipping the information a8o't c'rrent& 3
pre5ai&ing f'nctioning and ser5ices of the 8an1ing s3stem of NBP)
/
-'UTI. SU//AR0
The 8an1ing s3stem in Pa1istan has 6itnesses some e5o&'tionar3 changes
d'ring the recent 3ears and has made &ong!strides to6ards its goa& of 8ecoming a
financia&& 3 5ia8&e as 6e&& as firm arm of the econom3 6hich in t'rn 6o'&d
promot e not on&3 gro6th 8't a&so prosperit 3 not on& 3 of the 8an1ing sector 8't
of the econom3 as a 6ho&e) As 5i8rant and d3nami c 8an1ing sector is 5ita& for
the strong and prospero's econom3) Therefore@ on rea&i*ing the inherent
6ea1ness of the financia& str'ct're that emerged after nationa&i *at ion@
go5ernment of Pa1istan initiated a 8road 8ased program of reforms in the
financia& sector) In this 6a3 Ao5ernmentEs commi tment to 8an1ing reforms has
made Pa1istanEs financia& sector stronger in the &ast fo'r to fi5e) The 8an1ing
sector has sho6n remar1a8& e performance in a n'm8er of areas 6hich has he&ped
in f'rther strengthening of the 6ho&e process)
Ban1ing ind'str3 is present& 3 facing a h3per t'r8'&ent sit'ation 6here
8an1s ha5e to operate in increasing& 3 competit i5e and comp&e< &oca& and g&o8a&
mar1ets) The a8i&it 3 to compete in the fast paced g&o8a& en5ironment is of
paramo'nt import ance G s'r5i5a& of the fittest 8eing the name of the game) The
competi tion has e5en 8ecome e5er to'gh and cha&&enging 6ith the entr3 of man3
foreign 6or&d!c&ass 8an1s and other financia& instit'tions)
In this report i ha5e e<p&ained the e5o&'tion of 8an1ing sector@ the
ind'str3 8ac1gro'nd 6hich &eads to different reforms) Then i ha5e e<p&ained the
8ac1gro'nd of NBP its different prod'cts and ser5ices) After doing a&& this He
ha5e e<p&ained the prod'cts and ser5ices) Based on the data ta1en@ i ha5e done
financia& ana&3si s@ compet iti5e ana& 3sis@ ratio ana& 3sis@ +" ana& 3sis) In the &ast I
ha5e e<p&ained the different pro8&ems at NBP AO7 ind'stria& area Branch and
than s'ggestion)
;
'1A+TR 2 #
1IST)R0 ), *3+
#% I*TR)&U'TI)*
The NBP 6as esta8&ished 5ide NBP Ordinance No) III of No5em8er

t h
@ $-)
British Ao5t) de5a&'ed its c'rrenc3 in Septem8er $-@ India de5a&'ed
its r'pees 8't Pa1istan did not) It &ed to a crisis in trading 8et6een the
t6o co'ntries and India ref'sed to &ift the Pa1istan C'te) To so&5e this
pro8&em i) e) to e<port j'te NBP 6as esta8&ished thro'gh an Ordinance
of AOP) Nationa& Ban1 of Pa1istan maintains its position as Pa1istanJ s
premier 8an1 determined to set higher standards of achie5ements) It is
the maj or 8'siness partner for the Ao5ernment of Pa1istan 6ith specia&
emphasis on fostering Pa1istanJ s economic gro6th thro'gh aggressi5e
and 8a&anced &ending po&icies@ techno&ogica&& 3 oriented prod'cts and
ser5ices offered thro'gh its &arge net6or1 of 8ranches &oca&& 3@
internat iona& & 3 and representati5e offices)
The Ban1 in $.0 had one s'8sidiar3 KThe Ban1 of Baha6a&p'rE on
#ecem8er-@ $-; 83 the former Baha6a&p'r State)
NBP 6as 'nderta1ing Treas'r3 Operations and Managing 7'rrenc3
7hests or S'8 7hests at .; of its offices 6here the t'rno5er of the
8'siness 'nder the head amo'nted to "s) 9-/0 mi&& ion)
i% #eposits he&d 83 NBP constit'ted a8o't ,) $F of tota& deposits
of a&& Pa1istani Ban1s in $-@ 6hich rose to ,:F in $.9)
ii% Aro6th in #eposits 6as accompanied 83 increase in Ban1
portfo&io in ad5ances) NBP &ent o't to Te<ti& e@ Barn@ Iron and
Stee& and p&a3ed a pioneer ro&e in s'pport of agric'&t're and
commerce)
iii% NBP ad5ances reached "s) ..-) - mi &&ion 83 #ecem8er $.@
6hich 6as one third of the tota& sched'&e 8an1 credit)
:
#% # /ISSI)* STAT/*T
LTo ma1e the Ban1 comp&et e and competi ti5e 6ith a&& internationa&
Standard in performing@ ?'a&it 3 of@ operations@ staff@ financia& strength
and prod'cts and ser5ices To de5e&op a c'&t're of e<ce&& ence in e5er3
spare of acti5i t 3 of the 8an1
M
#% ! GOALS AND OB!CT!"ES
LAn organi*ationa& o8j ecti5e is the intended goa& that prescri8es definite
scope and s'ggests direction to the panning efforts of a n organization
#% $ GOALS AND OB!CT!"ES NB#
LTo 8e the pre!eminent financia& instit'tion in Pa1istan and achie5e
mar1et recognition 8oth in the ?'a&it 3 and de&i5er3 of ser5ice as 6e&& as
the range of prod'ct offerings) M

#% 4 3)AR& ), &IR'T)RS
NBP@ Board of #irectors &ist consist the fo&&o6ing mem8ers and their
designation)
Table 1
*A/ &ISI5*ATI)*
A&i "a*a 7hairman D President
#r Ha?ar Masood #irector
Ifthi1har A&i Ma&i1 #irector
Si kandar Hayat Jamal i
#irector
Azam Faruque
#irector
I br ar A. Mumt az
#irector
Mi an Kausar Hameed
#irector
#% 6 /A*A5/*T
Management is a distinct process consisting of acti5ities of p&anning@
organi*ing@ act'ating and contro&&ing performed to determine and
accomp& ish stated o8j ecti5es 6ith the 'se of h'man 8eing and other
reso'rces. The management has t6o t3pes)
i% 7entra&i *ed)
ii% #ecentra&i *ed)
Centralized anagement tends to concentrate decision making at
the top of the organization.
$0
!ecentralized disperses decision"making and authority throughout
and further down the organizational hierarchy.
NBP ha5e a centra&i*ed t3pe of management 8eca'se the top management
ta1es a&& the decisions)
#% 7 S*I)R /A*A5/*T ), *3+
Senior Management of NBP consists of fo&&o6ing mem8er and their
respecti5e designation)
Table #
Masood Kari m Shei 1h
S0NP D Aro'p 7hi ef@ 7orporat e D In5est ment
Ban1i ng Aro'p and 7hi ef Fi nanci a& Offi cer
Shahi d An6ar Khan S0NP D Aro'p chi ef@ credi t management gro'p)
#r) Asi f A) Brohi S0NP D Aro'p 7hi ef@ Operat i on Aro'p)
Imam Ba1hsh Ba& och S0NP D Aro'p 7hi ef@ a'di t and i nspect i on gro'p)
Oi a'& & ah Khan S0NP D Aro'p 7hi ef@ 7omp& ai nce Aro'p)
Aami r Si di ?'e
0NP D Aro'p 7hi ef@ commerci a& and ret ai & 8an1i ng
Aro'p)
M'hammad N'srat Nohra
S0NP D Aro'p 7hi ef@ Treas'r 3 Management
Aro'p)
01& a? Ahmad 0NP D secret ar 3 8oard of di rect or)
Taj amma& h'ssai n
Bo1hari
0NP D Aro'p 7hi ef@ Speci a& asset Management
Aro'p)
Mrs) Kh'rshi d Ma?sood
A& i
0NP D #i 5i si ona& +ead@ emp& o3ees 8enefi t s@
#i s8'rsement D Tr'st ees #i 5i si on
Ami m A1ht ar 0NP D PSO t o t he Presi dent
#r) Mi r*a A8rar Bai g
S0NP D Aro'p chi ef@ h'man reso'rce management
D admi ni st rat i on gro'p)
Tahi r Ba?oo8 0NP D Aro'p 7hi ef@ O5erseas coordi nat i on D
$$
management Aro'p)
An6ar Ahmad Meenai 0NP D #i 5i si ona& +ead@ Is& ami c Ban1i ng #i 5i si on
Aami r Sat t ar
,i nanci al control l er D #i 5i si ona& +ead@ Fi nanci a&
cont ro& #i 5i si on
Asi f +'ssai n Khan Aro'p 7hi ef (A%@ IT Aro'p
(So'rce 666) n8p) com) p1 %
#% 8 *et 9or: of 3ranches:
NBP ha5e 6ide range of 8ranches inside the co'ntr3 and o'tside the
co'ntr3)
In Pa1istan it has 9: regiona& offices@ $9:.Branches and - S'8sidiaries)
In o5erseas it has 9- o5erseas 8ranches@ / other offices)
#% ; ,unctions of *3+
Since NBP is a commercia& 8an1@ it performs a 5ariet 3 of f'nctions) Li1e
other commercia& 8an1s@ NBP is engaged in financing internationa& trade)
Its other maj or f'nctions inc&'de recei5ing deposits@ ad5ancing &oans and
disco'nting of e<change) The f'nctions performed 83 NBP are(
#% <% # Accepting &eposits
This f'nction is i mportant 8eca'se 8an1s &arge& 3 depend on the
f'nds deposited 6ith them 83 its c'stomers) #eposits are of man3
t 3pes(
#% <% !'urrent deposits
$9
7'rrent deposits are a&so ca&&ed demand &ia8i&it3 on c'rrent deposits) NBP pa3s
practica&&3 no interest on c'rrent deposits) B'sinessmen 's'a&&3 open c'rrent
acco'nts) In NBP c'rrent acco'nt can 8e opened 6ith a minim'm amo'nt of
"s).00P!
i$ #LS savin% deposit
Profit and &oss sharing deposits (PLS% are a&so ca&&ed
chec1ing acco'nts) One can deposit and dra6 mone3 easi& 3)
Profit on PLS is ca&c'&ated e5er3 month 8't paid after si<
months) PLS acco'nt can 8e opened 6ith a minim'm amo'nt
of "s) .00P!
ii$ #LS term deposits
Fi<ed term deposits are deposits 6ith the 8an1 for certain
fi<ed period 8efore the e<pir3 of 6hich the3 cannot 8e
6ithdra6n 'n&ess gi5ing d'e notice) In this case the rates of
profit 6i&& 8e different depending 'pon the ti me period
'hapter2 !
+R)&U'TS A*& SR.I'S
!% # /a=or product lines mar:et segmentation
$,
Ser5ices are o'tp'ts of the firm@ 6hich are in intangi8&e form) Hhich are
the 8ac18ones of an3 organi*ation to earn profitQ NBP offers the
fo&&o6ing ser5ices to the peop&e)
!% ! &/A*& &RA,TS
If 3o' are &oo1ing for a safe@ speed3 and re&ia8&e 6a3 to transfer mone3@
3o' can no6 p'rchase NBPEs #emand #rafts at 5er3 reasona8&e rates) An3
person 6hether an acco'nt ho&der of the 8an1 or not@ can p'rchase a
#emand #raft from a 8an1 8ranch)
!% $ S9I,T S0ST/
The SHIFT s3stem (Societ 3 for Hor&d6ide Inter8an1 Financia&
Te&ecomm'nication% has 8een introd'ced for speed3 ser5ices in the areas
of home remi ttances) The s3stem has 8'i&t!in feat'res of comp'teri*ed
test 1e3s@ 6hich e&iminates the man'a& app&ication of tests that often
ca'se de&a3 in the pa3ment of home remit tances) The SHIFT 7enter is
operationa& at Nationa& Ban1 of Pa1istan 6ith a 'ni5ersa& access n'm8er
*3+>A+??A) A&& NBP o5erseas 8ranches and o5erseas correspondents
(o5er -.0% are dra6ing remitt ances thro'gh SHIFT)
4sing the NBP net6or1 of 8ranches@ 3o' can safe& 3 and speedi& 3 transfer
mone3 for o'r 8'siness and persona& needs)
!% 4 (TTRS ), 'R&IT
NBP is commit ted to offering its 8'siness c'stomers the 6idest range of
options in the area of mone3 transfer) If 3o' are a commercia& enterprise
then o'r Letter of 7redit ser5ice is j 'st 6hat
$-
Bo' are &oo1ing for) Hith competi ti5e rates@ sec'rit 3@ and ease of
transaction@ NBP Letters of 7redit are the 8est 6a3 to do 3o'r 8'siness
transactions)
!% 6 TRA.(R@S '1AUS
Tra5e&erEs che?'es are negotia8&e instr'ments@ and there is no restriction
on the period of 5a&idi t 3 of the che?'es) "'pee tra5e&erEs che?'e is
a5ai&a8&e at a&& ;00 8ranches of NBP) This can 8e cashed in a&& -00
8ranches of NBP) There is no &imit on p'rchase of this che?'e) It is one of
the safest 6a3s for carr3ing mone3)
!% 7 +A0 )R&R
NBP pro5ides another reason to transfer 3o'r mone3 'sing o'r faci&i ties)
NBP pa3 orders are a sec're and eas3 6a3 to mo5e 3o'r mone3 from one
p&ace to another) And@ as 's'a&@ NBP charges for this ser5ice are
e<treme& 3 compet iti5e) The charges of NBP are 5er3 &o6 a&& o5er the
Pa1istan) It charges "s .0P! for NBP acco'nt ho&ders on iss'ing one
pa3ment order) And charges "s $00P! for NBP non!acco'nt ho&ders on
iss'ing one pa3ment order) It charges "s 9.P! for st'dents on pa3ment of
fees of ed'cationa& instit'tions) If someone 6ant a d'p&icate of pa3ment
order the3 charges "s $00P! for NBP acco'nt ho&ders and "s $.0P! for
non!acco'nt ho&ders)
!% 8 /AI(TRA*S,RS
Mo5e 3o'r mone3 safe& 3 and ?'ic1& 3 'sing NBP Mai& Transfer ser5ice)
And NBP a&so offers the most competi ti5e rates in the mar1et) The3
charges "s .0P! e<change rate and "S ;.P! postage charges on iss'ing mai &
transfer)
!% ; ,)RI5* R/ITTA*'S:
$.
To faci&it ate its c'stomers in the area of +ome "emit tances@ Nationa&
Ban1 of Pa1istan has ta1en a n'm8er of meas'res to Increase home
remitt ances thro'gh the 8an1ing s3stem Meet the SBP
directi5esPinstr'ct ions for time& 3 and prompt de&i5er3 of remittances to
the 8eneficiari es)
!% < S1)RT TR/ I*.ST/*TS
NBP no6 offers e<ce&&ent rates of profit on a&& its short!term in5estment
acco'nts) Hhether 3o' are &oo1ing to in5est for , months or $ 3ear@
NBPEs rates of profit are e<treme& 3 attracti5e@ a&ong 6ith the sec'rit 3 and
ser5ice on& 3 NBP can pro5ide)
!% #" *ational Income &aily Account (*I&A)
The scheme 6as &a'nched in #ecem8er $. to attract corporate
c'stomers) It is a c'rrent acco'nt scheme and is part of the profit and &oss
s3st em of acco'nts in operation thro'gho't the co'ntr3)
!% ## AUIT0 I*.ST/*TS
NBP has acce&erat ed its acti5i ties in the stoc1 mar1et to impro5e its
economic 8ase and restore in5estor confidence) The 8an1 is no6 regarded
as the most acti5e and dominant p&a3er in the de5e&opment of the stoc1
mar1et)
!% #! ')//R'IA( ,I*A*'
NBP dedicated team of professiona&s tr'& 3 'nderstands the needs of
professiona&s@ agric'&t'rists@ &arge and sma&& 8'siness and other segments
of the econom3) The3 are the c'stomerEs 8est reso'rce in ma1ing NBPEs
prod'cts and ser5ices 6or1 for them)
$/
!% #$ TRA& ,I*A*' )T1R 3USI*SS ()A*S
There are t6o t3pes of trade finance)
!% #$% # Agricultural 'redit:
The agric'&t'ra& financing strateg3 of NBP is aimed at
three main o8j ecti5es(!
Pro5iding re&ia8&e infrastr'ct're for agric'&t'ra& c'stomers
+e&p farmers 'ti&i*e f'nds efficient& 3 to f'rther de5e&op
and achie5e 8etter prod'ction
Pro5ide farmers an integrat ed pac1age of credit 6ith
s'pp&ies of essentia& inp'ts@ technica& 1no6&edge@ and
s'per5ision of farming)
!% #$% ! ')R+)RAT ,I*A*'
NBP specia& i*es in pro5iding Proj ect Finance G 0<port
"efinance to e<porters G Pre!shipment and Post!shipment
financing to e<porters G "'nning finance G 7ash Finance G
Sma& & Finance G #isco'nting D Bi&&s P'rchased G 0<port Bi&&s
P'rchased P Pre!shipment P Post Shipment Agric'&t'ra&
Prod'ction Loans
NBP pro5ides financing for its c&ientsE capita& e<pendit're
and other &ong!term in5est ment needs) B3 sharing the ris1
associated 6ith s'ch &ong!term in5estments@ NBP e<pedites
c&ientsE attempt to 'pgrade and e<pand their operation there83
ma1ing possi8&e the f'&fi&&ment of o'r c&ientsE 5ision) This
t 3pe of &ong term financing pro5es the 8an1Es 8e&ief in its
c&ientJ s capa8i&i ties@ and its commi tment to the co'ntr3)
!% #4 *ATI)*A( 3A*? ), +A?ISTA* ),,RS:
$;
The &o6est rates on e<ports and other internationa& 8an1ing
prod'cts
Access to different &oca& commercia& 8an1s in internat iona&
8an1ing
!% #4% # 'ash and 5old ,inance%
7ash and Ao&d finance means that &oan is gi5en against the
go&d) The go&d is mortgaged 6ith the 8an1 and &oan is ta1en)
It is the area of cons'mer finance) And 8orro6er can ta1e
&oan for common 'se)
!% #4% ! Advance salary loan
This &oan is gi5en to those peop&e 6ho are Ao5t ser5ants)
The3 can get a &oan 'p to the sa&ar3 of fifteen months)
$:
'1A+TR2 $
3USI*SS )+RATI)*S A*& &+ART/*TS ), *3+
#i5iding an organi*ation into different parts according to the f'nctions is
ca&&ed depart ments) So NBP can 8e di5ided into the fo&&o6ing main
depart ments)
$% # &+ART/*TS ), *3+
$% #% # 'AS1 &+ART/*T
7ash depart ment performs the fo&&o6ing f'nctions
$% #% ! Receipt
The mone3@ 6hich either comes or goes o't from the 8an1@ its record
sho'&d 8e 1ept) 7ash depart ment performs this f'nction) The deposits
of a&& c'stomers of the 8an1 are contro&&ed 83 means of &edger
acco'nts) 05er3 c'stomer has its o6n &edger acco'nt and has separate
&edger cards)
$% #% $ +ayments
It is a 8an1erEs primar3 contract to repa3 mone3 recei5ed for this
c'stomerEs acco'nt 's'a&& 3 83 honoring his che?'es)
$% #% 4 'heBues and their +ayment
The Negotia8&e Instr'ments Act@ $::$
$Che%ue is a bill of e&change drawn on a specified banker and not
e&pressed to be payable otherwise than on demand.
$
$% #% 6 Types of 'heBues
$% #% 6(i) 3earer 'heBues
Bearer che?'es are casha8&e at the co'nter of the 8an1) These
can a&so 8e co&&ected thro'gh c&earing%
$% #% 6(ii) )rder 'heBue
These t3pes of che?'es are a&so casha8&e on the co'nter 8't
its ho&der m'st satisf3 the 8an1er that he is the proper man to
co&&ect the pa3ment of the che?'e and he has to sho6 his
identifi cat ion) It can a&so 8e co&&ected thro'gh c&earing)
$% #% 6(iii) 'rossed 'heBue
These che?'es are not pa3a8&e in cash at the co'nters of a
8an1er) It can on&3 8e credited to the pa3eeEs acco'nt) If
there are t6o persons ha5ing acco'nts at the same 8an1@ one
of the acco'nt ho&der iss'es a cross!che?'e in fa5o'r of the
other acco'nt ho&der) Then the che?'e 6i&& 8e credited to the
acco'nt of the person to 6hom the che?'e 6as iss'ed and
de8ited from the acco'nt of the person 6ho has act'a&& 3
iss'ed the che?'e)
$% #% 7 +ayment of 'heBues
It is a 8an1erEs primar3 contract to repa3 mone3 recei5ed for his
c'stomerEs acco'nt 's'a&& 3 83 hono'ring his che?'es) It is a contract'a&
o8&igation of a 8an1er to honor his c'stomerEs che?'es if the fo&&o6ing
essentia&s are f'&fi&&ed)
a% 7he?'es sho'&d 8e in a proper form(
90
8% 7he?'e sho'&d not 8e crossed(
c% 7he?'e sho'&d 8e dra6n on the partic'&ar 8an1(
d% 7he?'e sho'&d not m't i&ated(
e% F'nds m'st 8e s'fficient and a5ai&a8&e(
f% The 7he?'e sho'&d not 8e postdated or sta&e(
g% 7he?'e sho'&d 8e presented d'ring 8an1ing ho'rs
$% ! '(ARA*' &+ART/*T
A c&earingho'se is an association of commercia& 8an1s set 'p in gi5en
&oca&i t 3 for the p'rpose of interchange and sett&ement of credit c&aims)
The f'nction of c&earingho'se is performed 83 the centra& 8an1 of a
co'ntr3 83 tradition or 83 &a6) In Pa1istan@ the c&earing s3st em is
operated 83 the SBP) If SBP has no office at a p&ace@ then NBP@ as a
representati5e of SBP act as a c&earingho'se)
In practice the person recei5ing a 7he?'e as rare&3 a depositor of the
che?'e at the same 8an1 as the dra6er) +e deposits the che?'e 6ith his
8an1 other than of pa3er for the co&&ection of the amo'nt) No6 the 8an1 in
6hich the che?'e has 8een deposited 8ecomes a creditor of the dra6erEs
8an1) The depositor 8an1 6i&& pa3 his amo'nt of the che?'e 83
transferring it from cash reser5es if there are no offsetting transactions)
The 8an1s on 6hich the che?'es are dra6n 8ecome in de8t to the 8an1 in
6hich the che?'es are deposited) At the same time@ the creditorsE 8an1s
recei5e &arge amo'nts of che?'es dra6n on other 8an1s gi5ing c&aims of
pa3ment 83 them)
9$
The eas3@ safe and most efficient 6a3 is to offset the reciproca& c&ai ms
against the other and recei5e on& 3 the net amo'nt o6ned 83 them) This
faci&i t 3 of net inter8an1 pa3ment is pro5ided 83 the c&earingho'se)
$% !% # in>9ord 'learing 3oo:s
The 8an1 'ses this 8oo1 for the p'rpose of recording a&& the
che?'es that are 8eing recei5ed 83 the 8an1 in the first c&earing)
A&& detai&s of the che?'es are recorded in this 8oo1)
$% !% ! )ut>9ord 'learing 3oo::
The 8an1 'ses o't6ard c&earing register for the p'rpose of
recording a&& the detai&s of the che?'es that the 8an1 has
de&i5ered to other 8an1s)
$% $ A&.A*'S &+ART/*T
Ad5ances department is one of the most sensiti5e and import ant
depart ments of the 8an1) The maj or portion of the profit is earned thro'gh
this department) The jo8 of this department is to ma1e proposa&s a8o't the
&oans) The 7redit Management #i5ision of +ead Office direct& 3 contro&s
a&& the ad5ances) As 6e 1no6n 8an1 is a profit see1ing instit'tion) It
attracts s'rp&'s 8a&ances from the c'stomers at &o6 rate of interest and
ma1es ad5ances at a higher rate of interest to the indi5id'a&s and 8'siness
firms) 7redit e<tensions are the most i mportant acti5it 3 of a&& financia&
instit'tions@ 8eca'se it is the main so'rce of earning) +o6e5er@ at the
same time@ it is a 5er3 ris13 tas1 and the ris1 cannot 8e comp&et e& 3
e&i minated 8't co'&d 8e mini mi *ed &arge& 3 6ith certain techni?'es)
99
Any individual or companyC Dho Dants loan from *3+C first of all has
to undergo the filling of a prescribed formC Dhich provides the
folloDing information to the ban:er%
a% 0<isting financia& position of a 8orro6er at a partic'&ar 8ranch)
8% Acco'nts detai&s of other 8an1s (if an3%)
c% Name D address of the 8orro6er
d% Sec'rit 3 against &oan)
e% 0<iting financia& position of the compan3) (Ba&ance Sheet D Income
Statement%)
f% Signing a promissor3 note is a&so a re?'irement of &ending@ thro'gh
this note 8orro6er promise that he 6i&& 8e responsi8&e to pa3 the
certain amo'nt of mone3 6ith interest)
$% 4 R/ITTA*' &+ART/*T
"emitt ance means a s'm of mone3 sent in pa3ment for something) This
depart ment dea&s 6ith either the transfer of mone3 from one 8an1 to other
8an1 or from one 8ranch to another 8ranch for their c'stomers) NBP offers
the fo&&o6ing forms of remit tances)
a% #emand #raft
8% Te&egraphi c Transfer
c% Pa3 Order
d% Mai& Transfer
A) &emand &raft
9,
#emand draft is a pop'&ar mode of transfer) The c'stomer fi&&s the
app&ication form) App&icat ion form inc&'des the 8eneficiar3 name@
acco'nt n'm8er and a senderEs name) The c'stomer deposits the
amo'nt of ## in the 8ranch) After the pa3ment the ## is prepared
and gi5en to the c'stomer) NBP officia&s note the transaction in
iss'ance register on the page of that 8ranch of NBP on 6hich ## is
dra6n and 6i&& prepare the ad5ice to send to that 8ranch) The
acco'nt of the c'stomer is credited 6hen the ## ad5ice from
originating 8ranch comes to the responding 8ranch and the acco'nt
is de8ited 6hen ## comes for c&earance) ## are of t6o t3pes)
a% )pen &&: Hhere direct pa3ment is made)
8% 'ross &&: Hhere pa3ment is made tho'gh acco'nt)
3) +ay )rder
Pa3 order is made for &oca& transfer of mone3) Pa3 order is the most
con5enient@ simp&e and sec're 6a3 of transfer of mone3) NBP ta1es
fi<ed commission of "s) 9. per pa3 order from the acco'nt ho&der
and "s) $00 from a non!acco'nt ho&der)
') Telegraphic Transfer
Te&egraphi c transfer or ca8&e transfer is the ?'ic1est method of
ma1ing remit tances) Te&egraphi c transfer is an order 83 te&egram to
a 8an1 to pa3 a specified s'm of mone3 to the specified person) The
c'stomer for re?'esting TT fi&&s an app&ication form) No'chers are
prepared and sent 83 ordinar3 mai& to 1eep the record) TT charges
are ta1en from the c'stomer) No e<cise d't 3 is charged on TT) The
TT charges are(
Te&egramP Fa< 7harges on TT R Act'a&!minim'm "s) $9.)
9-
&) /ail Transfer
Hhen the mone3 is not re?'ired immediate& 3@ the remitt ances can
a&so 8e made 83 mai& transfer (MT%) +ere the se&&ing office of the
8an1 sends instr'ctions in 6riting 83 mai & to the pa3i ng 8an1 for the
pa3ment of a specified amo'nt of mone3) #e8iting to the 8'3erEs
acco'nt at the se&&ing office and crediting to the recipientEs acco'nt
at the pa3i ng 8an1 ma1e the pa3ment 'nder this transfer) NBP ta<es
mai& charges from the app&icant 6here no e<cise d't3 is charged)
Postage charges on mai & transfer are act'a& mini m'm "s) -0P! if sent
83 registered post &oca&& 3 "s) -0P! if sent 83 registered post in&and
on part 3Es re?'est)
$% 6 1U/A* RS)UR' &+ART/*T
+'man "eso'rce p&a3s a 5ita& ro&e in the s'ccess of e5er3 ser5ice
organi*at ion) The3 interact 8et6een man and machine) Their attit'de can
6in or &ose the c'stomer) The positi5e attit'de co'&d on& 3 8e created in a
cond'cti5e en5ironment@ 6hich can ma1e the staff dedicated to6ards the
organi*at iona& o8j ecti5es
/ain ob=ectives of my study Dere to see folloDing areas
$) Hor1ing 0n5ironment of NBP

9) +" #epartment of NBP
% ,unctions of 1R &epartment %
/AE)R ,U*'TI)*S
Fo&&o6ing are the f'nctions of +" Management and Administration
depart ment@ Nationa& Ban1 of Pa1istan)
#% 1uman Resource +lanning
+'man "eso'rce P&anning is cond'cted 83 the +" department) The3
assess the e<isting n'm8er and nat're of staff and then p&ace P post them
at need3 8ranches according to the re?'irement of that 8ranch) For
e<amp&e@ if the &oad on cash co'nter is increasing@ one ne6 cashier 6i&& 8e
posted at the Branch)
9.
!% Recruitment of Staff
Another important f'nction of +" department is recr'it ment of staff as
per a5ai&a8i& it 3 of 5acancies) At NBP@ recr'it ment of permanent staff is
centra& i*ed and a&& recr'itments are made 83 their +ead Officer Karachi)
+o6e5er@ in near past &i mit ed a'thorit 3 has 8een gi5en to regiona& offices
to hire the ser5ices of o'tso'rced staff i) e staff pro5ided 83 the
emp&o3ment companies) This t 3pe of recr'it ment is 8eing made in
fo&&o6ing areas(
a) Sec'rit 3 A'ards
8) Canitoria& Ser5ices
c) Sa&e D Mar1eting staff for retai& prod'cts)
$% Transfer of mployee
The regiona& office contro&s fift 3 fi5e (..% 8ranches) A&& transfer and
posting of emp&o3ees among these 8ranches is made 83 +" department
1eeping in 5ie6 the staff re?'irement at different 8ranches)
4% Eob Rotation
F'nction of Co8 rotation is a&so performed 83 regiona& office) Norma&& 3
6hen an emp&o3ee comp& etes three 3ears at a partic'&ar seat@ he rotates to
another seat) This rotation is 5er3 i mportant for interna& contro&@ to
pre5ent fra'd and forger3 and to enhance the emp&o3eeEs s1i&&s for
different d'ties)
6% 1uman Resource &evelopment F Training
+) " #epartment ana& 3*es the da3 to da3 re?'irement of SBP reg'&ation
for different Ban1ing acti5it ies@ and p&ans for training and de5e&opment of
staff ) This training ma3 a&so 8e 8ased 'pon introd'ction of ne6 Ban1ing
prod'ces and compet ition 6ith ri5a& Ban1s)
7% +erformance Appraisal
+) " #epartment a&so performs the f'nction of performance appraisa& of
emp&o3ees on 3ear& 3 8asis ) At the c&ose of e5er3 3ear ann'a& confidentia&
report (A7"% of each and e5er3 emp&o3ee is 6ritten 83 +" depart ment)
This A7" contains s'8j ecti5e and o8j ecti5e e5a&'ation as 6e&& as persona&
traits of an emp&o3ee)
8% +romotion of employees
NBP +" depart ment performs the f'nction of promotion) Norma&& 3 NBP
promot es its emp&o3ees after e5er3 three 3o'rs on the 8asis of their past
performance@ a5ai&a8i& it 3 of 5acancies in each gradePcadre and ?'ota
appro5ed 83 the Ministr3 of Finance@ for each gradePcadre)

;% (ay )ff
9/
La3 off f'nction is a&so performed 83 +" department) NBP is a go5t)
o6ned organi*ation and its emp&o3ees retire at the attainment of age of /0
3ears) +o6e5er@ in $: and 9009 the NBP anno'nced the Ao&den +and
Sha1eschemes and a& most .000 and ,.00 emp&o3ees separated from Ban1
ser5ices in these respecti5e 3ears)
<% 1ealth F Safety
+ " department arranges for medica& faci&it ies to its emp&o3ees) There are
se5era& hospita&s on Ban1s pane& and emp&o3ees can a5ai& medica&
faci&i ties from these hospita&s) +ospita&s 8i&&s are 8eing paid 83 +"
depart ment after proper 5erificat ion) NBP e<tend medica& faci&it 3 to
emp&o3ees@ their spo'se (6ife% and chi&dren as 6e&& as parents of the
emp&o3ee) Brother or sister or an3 other re&ation is not entit& ed for this
medica& faci&it 3)
#"% &isciplinary 'ases
+" department dea&s 6ith a&& discip&inar3 cases of emp&o3ees) These
discip&inar3 cases inc&'de( !
a) afraid D Forger3
8) 4na'thori*ed &ea5es
c) Ins'8ordination
d) Miscond'ct of finances
e) Nio&ation of proced're D po&ic3
##% Retirement 3enefits
+" department a&so manages pensions and gro'p &ife ins'rance) Pension is
a&&o6ed to a&& emp&o3ees after retirement and 6hen the emp&o3ee dies and
his 6ido6 can a5ai& this faci&it 3 ti&& death) 05en if the 6ido6 dies@ the and
da'ghterPson of emp&o3ee can a5ai& pension ti&& shePhe attain the age of
maj orit 3 i) e) $:3ears or shePhe married@ 6hiche5er is happened ear&ier)
#!% +ersonnel Information System
+" department is responsi8&e to 1eep and maintain comp&ete data of
0ach and e5er3 emp&o3ees this data inc&'des his persona& data as 6e&& as
professiona& data and 8eing 'sed to p&ace right person for the right jo8)
#$% Bual mployment 'hance
NBP pro5ides e?'a& emp&o3ment chance to men D 6omen) +" department
is responsi8&e to imp&ement this po&ic3@ too)
#4% Salary F (oan Administration
+" department performs the f'nction of dis8'rsement of Sa&ar3 and
administration of Staff Loans) Sa&ar3 is 8eing dis8'rsed in &ast 6ee1 of
the month) NBP a&&o6s ho'se 8'i&ding &oan@ Motor car &oan and comp't er
&oan toits emp&o3ees) Period of ho'se 8'i&ding &oan is 90 3ears@ 7ar &oan
9;
is $0 3ears and comp'ter &oan is . 3ears) Mar1 'p on +BL is ,F and
carPcomp'ter&oanis-F)
+" department pa3s sa&aries to emp&o3ees after ded'ction of month& 3
insta&& ments of &oans@ a&read3 a5ai&ed 83 them)
$% 7% &+)SIT &+ART/*T
It contro&s the fo&&o6ing acti5i ties(
$% 7% # Account opening
The opening of an acco'nt is the esta8&ishment of 8an1er c'stomer
re&ationship) Before a 8an1er opens a ne6 acco'nt@ the 8an1er
sho'&d determine the prospecti5e c'stomerEs integrit 3@
respecta8i& it 3@ occ'pation and the nat're of 8'siness 83 the
introd'ctor3 references gi5en at the time of acco'nt opening)
Pre&i minar3 in5estigat ion is necessar3 8eca'se of the fo&&o6ing
reasons)
i) A5oiding fra'ds
ii) Safe g'ard against 'nintended o5er draft)
iii) Neg&igence)
i5) In?'iries a8o't c&ients)
There are certain forma& iti es@ 6hich are to 8e o8ser5ed for opening
an acco'nt 6ith a 8an1)
Forma& App&ication
Introd'ction
Speci men Signat're
9:
Minim'm Initia& #eposit
Operating the Acco'nt
$% 7% ! Types of Accounts
Fo&&o6ing are the main t3pes of acco'nts
$% Indi5id'a& Acco'nt
9% Coint Acco'nt
,% Basic Ban1ing Acco'nts
-% Profit s'pport Acco'nts
.% Pensioner Acco'nts
/% Acco'nts of Specia& T3pes
Partnership acco'nt
Coint stoc1 compan3 acco'nt
Acco'nts of c&'8s@ societi es and associations
Agents acco'nt
Tr'st acco'nt
0<ec'tors and administrators acco'nts
Pa1 r'pee non!resident acco'nts
Foreign c'rrenc3 acco'nts
9
$% 7% $ Issuing of cheBue boo::
This department iss'e che?'e 8oo1s to acco'nt ho&ders)
"e?'irements for iss'ing che?'e 8oo1
a% The acco'nt ho&der m'st sign the re?'isition s&ip
8% 0ntr3 sho'&d 8e made in the che?'e 8oo1!iss'ing 8oo1
c% Three r'pees per che?'e sho'&d 8e reco5ered from aPc
ho&der if not then de8it hisPher acco'nt)
$% 7% 4 'urrent account
These are pa3a8& e to the c'stomer 6hene5er the3 are demanded)
Hhen a 8an1er accepts a demand deposit@ he inc'rs the o8&igation of
pa3i ng a&& che?'es etc) dra6n against him to the e<tent of the
8a&ance in the acco'nt) Beca'se of their nat're@ these deposits are
treated as c'rrent &ia8i &it ies 83 the 8an1s)
$% 7% 6 Saving account
Sa5ings #eposits acco'nt can 8e opened 6ith 5er3 sma& & amo'nt of
mone3@ and the depositor is iss'ed a che?'e 8oo1 for 6ithdra6a&s)
Profit is paid at a f&e<i8&e rate ca&c'&at ed on si<!month 8asis 'nder
the Interest!Free Ban1ing S3st em) There is no restriction on the
6ithdra6a&s from the deposit acco'nts 8't the amo'nt of mone3
6ithdra6n is de&eted from the amo'nt to 8e ta1en for ca&c'&ation of
prod'cts for assessment of) @ profit to 8e paid to the acco'nt ho&der)
$% 7% 7 'heBue cancellation:
This department can cance& a che?'e on the 8asis ofS
a% Post dated che?'e
,0
8% Sta&e che?'e
c% Harn o't che?'e
d% Hrong sign etc
,$
'1A+TR 2 4
')/+A*0 A*A(0SIS
4% # S9)T A*A(0SIS
To carr3o't the SHOT and Financia& Ana& 3sis of NBP thro'gh the he&p of
ca&c'&ating necessar3 ratios in this section)
SHOT ana& 3sis is an acron3m that stands for strengths@ 6ea1ness@
opport'nities@ and threats SHOT ana& 3sis is caref'& e5a&'ation of an
organi*at ionEs interna& strengths and 6ea1ness as 6e&& as its en5ironment
opport'nities and threats)
$'()T analysis is a situational which includes strengths, weaknesses,
opportunities and threats that affect organizational performance.
$The overall evaluation of a company strengths, weaknesses,
opportunities and threats is called '()T analysis.
In SHOT ana& 3sis the 8est strategies accomp& ish an organi*ationEs
mission 83(
a% 0<p&oiting an organi*ations opport'nities and strength)
8% Ne'tra&i*ing it threats)
c% A5oiding or correcting its 6ea1ness)
SHOT ana&3si s is one of the most important steps in form'&at ing strateg3
'sing the organi*ation mission as a conte<tS managers assess interna&
strengths distincti5e competencies and 6ea1ness and e<terna&
opport'nities and threats) The goa& is to then de5e&op good strategies and
,9
e<p&oit opport'nities and strengths ne'tra&i *e threats and a5oid
6ea1nesses)
4% #% # STR*5T1
(i) )(&ST I*STITUTI)*:
NBP is one of the o&dest 8an1 of Pa1istan and first nationa&i*ed 8an1 +ence
its c'stomer 8ase is strength from this p&'s point as c'stomers ha5e more
confidence in the 8an1) The additiona& 5a&'e ser5ices as the pri5i&ege for the
8an1)
(ii) A(TR*AT &UTIS I* S3+ A3S*'
The NBP performs additiona& ser5ices for its c'stomers as 6e&&
as the other 8an1 c'stomer in the a8sence of SBP)
(iii) /)R &+)SITS T1A* )T1R 3A*?S
NBP has the re&ati5e competence in ha5ing more deposits than the other 8an1)
This is 8eca'se of the confidence the c'stomer ha5e in the 8an1) The 8an1
8eing the pri5i&eged and o&dest 8an1 in 8an1ing sector of Pa1istan enjo3s this
edge o5er a&& others@ &ac1ing it)
(iv) /+()0 3*,ITS
The emp&o3ers at NBP are offered reasona8&e monetar3 8enefit) Norma&&3 t6o
8on'ses are gi5en 0id!4&!Fitar D 0id!4&!A*ha) This ser5es as an additiona&
8enefit and competenc3 for the 8an1 and a so'rce of moti5ation for the
emp&o3ees)
(v) 3R)A& *T9)R?
,,
The 8an1 has another compet enc3 i) e) it has 8road!8asses
net6or1 of 8ranches thro'gho't the co'ntr3 a&so more than one
8ranch in high prod'cti5e cities) The c'stomers are pro5ided
ser5ices at their nearest possi8&e p&ace to confirm c'stomer
satisfied)
(vi) STRI'T(0 ,)(()9& RU(S F R5U(ATI)*(
The emp&o3ees at NBP are strict fo&&o6ers of r'&e D reg'&ation imposed 83
8an1) The discip&ined en5ironment at NBP 8o&sters its image and a&so
enhances the o5er a&& o't p't of the organi*ation)
(vii) +R),SSI)*A( ')/+T*'
The emp&o3ees at NBP here ha5e a good ho&d on their descriptions@ as the3
are high&3 s1i&&ed Professiona&s 6ith 8ac1gro'nd in 8'siness administration@
8an1ing@ economics etc) These professiona& competencies ena8&e the
emp&o3ees to 'nderstand and perform the f'nction and operation in 8etter
6a3)
(viii) 1A(T10 *.IR)/*/*T
The 6or1ing condition in the NBP 8ranch here is 5er3
cond'cti5e and fa5ora8&e for 8etter o'tp't) The informa&
en5ironment affects the performance of the emp&o3ees in a
positi5e 6a3)
(iG)R(ATI)* 3T9* STA,, A*& )T1R
/+()0S
The 8an1 enj o3s a good p&'s point 6hen it comes to the
emp&o3ee manager re&ationship the hearing as remo5ing of
discrepancies if an3@ 8et6een the emp&o3ees@ and 8et6een the
manager and emp&o3ees)
,-
(G) *3+ A&.A*' SA(AR0
The prod'ct of the 3ear 900:@ 900) the prod'ct 6as de5e&oped 83
NBP 7redit Aro'p@ their 8asic target is sa&aried Ao5t 0mp&o3ees)
This has increased NBPEs 7redit portfo&io 6ith a maj or 8oost)
Hith minim'm defa'&t ratio@ its 8een the s'ccess stor3 of NBP)
Sti&& its a good prod'ct than their competitors persona& &oans)
The interest rate charged to this &oan is SBP #isco'nt "ate T .F)
(Gi) *) panelty on (ate +ayment or arly Settlement of
(oans
NBP is one of those 8an1s@ 6ho donot impose an3 pane&t 3 to
their c'stomers regarding &ate pa3ment of insta&&ments or mar1'p
and ear&3 sett&ement of &aons or 8a&&oon pa3ments in case of
credits)
In case a c'stomer 6ants to ma1e 8a&&oon pa3ments 6i&& not 8
charged to an3 pane&t 3 in an3 ad5ances case of NBP) ItEs a
strength of NBP against its competi tors)
(Gii) *3+ +remium Aaamdani
This is the on&3 prod'ct of an3 commercia& 8an1 in the co'ntr3
6hich is compet ing 6ith the NATIONAL SANINAS 70NT0"Es
prod'cts) NBP is offering rates to the c'stomers 6ho deposits
mone3 in m'& tip& es of "s .0@ 000P! 6ith them ti&& fi5e 3ears)
At first 3ear ;) .F
At second 3ear :) .F
At third 3ear ) .F
At fo'rth 3ear $0) .F
,.
At fifth 3ear $$) .F
,/
4% ! 9A?*SSS
a) (A'? ), /AR?TI*5 ,,)RT:
The 8an1 does not promot e its corporate image@ ser5ices etc on a
competi ti5e 6a3) +ence &ac1s far 8ehind in mar1et ing effort )A
need for aggressi5e mar1eting in there in the era mar1eting in
no6 8ecoming a part of e5er3 organi*at ion)
b) *3+ U*&R +)(ITI'A( +RSSUR
The strong po&itica& ho&d of some parties and go5ernment and
their dominance is affecting the 8an1 in a negati5e 6a3) The3
somet ime ha5e to pro5ide &oan 'nder the press're@ 6hich &eads to
'ne5en and adj 'sted fee&ing in the 8an1 emp&o3ees) -) ,) ,
c) ,A.)RITIS/ A*& *+)TIS
The promot ions and 8on'ses etc in the 8an1 are often po6ered
83 seniorEs fa5oritism or depend 'pon their 6i&&s and decision)
This adds to the negati5e factors@ 6hich denominate the
emp&o3ees th's res'&ting in affecting their performance
negati5e& 3)
d) (A'? ), ,I*A'IA( +R)&U'T
The 8an1 fa&&s far 8ehind 6hen the inno5ati5e and ne6 schemes
are consider) It has not 8een in5o&5ed in the t'g of 6ar 8et6een
the competitors to the acco'nts and strengthens the e<isting
c'stomer 8ase) This stands o't to 8e the maj or incompet ence and
6ea1ness of the 8an1s)
,;
e) I*,,I'I*T ')U*TR SR.I'S I* T1 RUS1
1)URS
#'ring the r'sh ho'rs@ the 8an1 is fo'nded o't to 8e a tota& f&op
to hand&e the mo8 of peop&e pea1ing from 6indo6s and doors)
The 8an1 has deficienc3 to operate in the stages of r'sh ho'rs
6here the peop&e find them ser5ices entang&ed in a sit'ation of
no6here 8eca'se the3 are not 6e&& ser5ed)
f) (A'? ), ')/+UTRIH& *T9)R?
The 8an1 &ac1 the strength of 8eing po6ered 83 the net6or1 of
comp'ters@ 6hich ha5e sa5ed ti me@ energ3 and 6o'&d ha5e
&essened the menta& stress@ the emp&o3ees ha5e c'rrent& 3) This
6o'&d add to the strength if it 6ere po6ered 83 net6or1 of
comp'ters)
g) (A'? ), /)&R* AUI+/*T
The 8an1 &ac1s the modern 0?'ipment that is note co'nting
machine comp'ters) 05en if there is an3 e?'ipment the3 &ac1 to
fa&& in the criteria of 8eing rearmed as 'pdate and 'pgraded)
h) U*.* 9)R? &ISTI3UTI)*%
The 6or1&oad in NBP is not e5en& 3 distri8'ted and the 6or1&oad
tends to 8e more on some emp&o3ees 6hi&e others a8scond a6a3
from their responsi8i&it ies@ 6hich ser5er as a demoni*ation factor
for emp&o3ees performing a8o5e a5erage 6or1)
i) )(& employee aDareness
,:
7omp't er a6areness to o&d Staff of NBP is a 6ea1ness) The3
sho'&d de5e&op emp&o3ee de5e&opment D training programme to
effecti5e& 3 'pdate their emp&o3ees regarding comp't er
app&ications D 'pcoming 7O"0 BANKINA SOFTHA"0 of 8an1)
4% $ )++)RTU*ITIS
a) ('TR)*I' 3A*?I*5
The 6or&d toda3 has 8ecome a g&o8a& 5i&&age 8eca'se of
ad5ancement in the techno&ogies@ especia& & 3 in comm'ni cation
sector) More emphasis is no6 gi5en to a5ai& the modern
techno&ogi es to 8etter the performances) NBP can 'ti&i*e the
e&ectronic 8an1ing opport'nit 3 to ens're on &ine 8an1ing 9-
ho'rs a da3) This 6o'&d gi5e a compet iti5e edge o5er others)
b) /I'R) ,I*A*'I*5
Beca'se of the need for micro financing in the mar1et@ there are
&ot of opport'nities in this regard) Other 8an1s ha5e a&read3
initiated@ no6 the ti me has arri5ed 6hen the NBP m'st rea&i*e it
and ta1e on step to cater an ongoing demand)
c) 'AR ,I*A*'I*5
This is the maj or area 6here NBP has not compet ed 6ith pri5ate
8an1s) As per rep'te of NBP the3 m'st enter in persona& D car
financing prod'cts)
d) ')R 3A*?I*5 S0ST/
Imp& ementat ion of the 7O"0 BANKINA SBST0M is sti&& an
opport'nit 3@ as ti&& no6 none of the 8an1s operating in Pa1istan
,
is 'sing this most 'pdated D famo's 8an1ing app&icat ion) It 6i&&
&ead NBP to smooth sai&ing en5ironment as a &eading 8an1 in
techno&og3 as 6e&& as competing 8et6een other 8an1s) This 6i&&
'pgrade NBP from paper D &edger era to the smooth D
sophisticated comp'ter app&ication)
4% 4 T1RATS
a) /R5*' ), *9 ')/+TIT)RS
The 8an1 is facing threats 6ith the emergence of ne6 competitor
especia&& 3 in terms of foreign 8an1s) These foreign 8an1s are
e?'ipped 6ith hea53 financia& po6er 6ith e<ce&&ent and
inno5ati5e 6a3s of promoting and performing their ser5ices) The
8an1 has to ta1e initiati5e in this regard or 6i&& find itse&f far
8ac1 in competit ion)
b) +)(ITI'A( +RSSUR 30 ('T& 5).R*/*T
The ongoing shift in po6er in po&itica& arena in the co'ntr3
effects the performance of the 8an1 has to for6ard &oans to
po&itica&& 3 po6erf'& persons 6hich create a sense of insec'rit 3
and demora& i*at ion in the c'stomer as 6e&& as emp&o3ees)
c) &)9*SIHI*5
The 8an1 is c'rrent& 3 acting 'pon the po&ic3 of do6nsi*ing
6hich threaten the en5ironment of the 8an1 0mp&o3ees fee&
insec'rit 3 in doing their j o8s and 6or1@ hence affecting the o5er
a&& performance of emp&o3ees negati5e& 3)
-0
d) 'UST)/RS ')/+(AI*TS
There e<ists no reg'&ar and specific s3stem of the remo5a& of
c'stomer comp&aints) No6 a da3 a need for tota& c'stomer
satisfaction is emerging and in their demanding conse?'ences
c'stomerJ s comp&aints are ignored)
'1A+TR 2 6
A*0(ASIS
After proper ana& 3sis of the organi*ation I di5ided it into in fo'r parts)
This ana& 3sis is main& 3 8ased on practica& e<perience of NBP Staff@
ana& 3sis is as 'nder( !
Pro8&ems at the 8ranch)
F'nction ana& 3sis)
Administrati5e ana& 3sis)
Persona& managementEs ana& 3sis)
6% # +R)3(/S AT T1 3RA*'1
7'stomer Satisfaction
Poor record management and fi&ing s3stem
4ne?'a& distri8'tion of 6or1
Mar1eting 5isits
-$
6% ! ,U*'TI)*A( A*A(0SIS
Forma& Organi*ation
#ifference 8et6een theor3 and practice
Ban1 d't3 to maintain secrec3)
0<cessi5e paper 6or1
More acco'nts fe6er deposits)
#e&egation of a'thorit 3
6% $ A&/I*ISTRATI. A*A(0SIS
Co8 ana& 3sis is not effecti5e
7are&essness in opening of acco'nt
Lac1 of specia&i*ed training
Lo6 Profit "ates
Poor j o8 rotation)
#e&a3s in Loan Ad5ancement
Lac1 of appreciat ion
6% 4 +RS)*A( /A*A5/*T A*A(0SIS
Need for 8etter training program
#e5e&oping Manageria& Leadership
"ecr'it ment po&ic3
Promot ions
Transfer
-9
Mar1eting at des1
Lac1 of 8'siness comm'ni cat ion
-,
'1A+TR 2 7
')*'(USI)*
I*TR)&U'TI)*
NBP is an effecti5e& 3 operating and profit ma1ing organi*ation and
carr3i ng o't its acti5iti es 'nder a specified s3stem of proced're) The main
reg'&ator3 8od3 is State Ban1 of Pa1istan@ 6hich pro5ides po&ic3
g'ide&ines and ens'res that the mone3 mar1et operates on so'nd
professiona& 8asis 6hi&e the head office specifies the 6ho&e proced're of
f'nction and operations)
+ere I am gi5ing some s'ggestions@ 6hich in m3 5ie6 can add some inp't
for efficienc3 and 8etter performance of NBP as an organi*ation in
genera& and 7it3 8ranch in partic'&ar)
The recommendat ions are as fo&&o6s(
7% # +rofessional training
NBP staff &ac1s professiona&ism) The3 &ac1 the necessar3
training to do the j o8 efficient& 3 and proper& 3) A&tho'gh staff
co&&eges in a&& maj or cities 8't the3 are not performing 6e&&)
Ban1ing co'nci& of Pa1istan sho'&d a&so initiat e some
programs to e?'ip the staff 6ith m'ch needed professiona&
training)
7% ! &elegation of Authority
0mp&o3ees of the 8an1 sho'&d 8e gi5en a tas1 and a'thorit 3
and the3 sho'&d 8e as1ed for their responsi8i&it 3)
7% $ +erformance Appraisal
--
The manager sho'&d strict& 3 moni tor the performance of e5er3
staff mem8er) A&& of them sho'&d 8e a6arded according to
their performance and res'&t in the shape of 8on'ses to
mot i5at ed and incite them to 6or1 more efficient& 3)
7% 4 'hanges in +olicies
There sho'&d not 8e an3 a8r'pt po&icies change 83 the 'pper
management@ as this practice h'rts the c'stomer confidences
in the 8an1) Ao5ernment sho'&d ma1e &ong!term po&icies)
7% 6 Utility 3ill 'harges
Ban1 gets "s) . to : to processes a 'ti&it 3 8i&&@ and it is 5er3
tire@ to'gh and hard j o8 despite this 6or1ing res'&ting in a
&oss to then "s . to : per transaction) These charges sho'&d
8e increased to "S $0 per 8i&& to ena8&e the 8ranch to co5er
their hand&ing costs and ma1e some profit)
7% 7 (in: Dith the 1ead Auarter
$/0 maj or 8ranches of NBP sho'&d esta8&ished a direct &in1
6ith the@ head ?'arter in Karachi@ thro'gh Internet or
Intranet) This 6i&& ma1e the f'nctions and decision ma1ing of
the management easier and con5enient)
7% 8 'redit 'ard
Nationa& 8an1 of Pa1istan sho'&d start its operation in credit
card) These cards 6ere 5er3 he&pf'& for the ordinar3 c'stomer
in genera& and the 8'siness peop&e in partic'&ar) To ma1e it
mores sec're and to e&iminate the mis'se of it@ the
management is re?'ired to 1eep proper sec'rit 3 against the
card) B't as NBP is a AONT 8an1 so most of the c'stomer
gets defa'&ted and do not 6ant to repa3 the 7"0#IT 7A"#S
-.
amo'nts) 0ffecti5e in5o&5ement of 7o&&ect ion officers for the
repa3ment of credited amo'nt rather than treating and
pro5isioning them as NPL)
7% ; 'ash ,inancing
In this mode of financing the amo'nt of credit not 'ti&i*ed 83
the 8orro6er is remained ta<!free) It is recommended that a
sma& & amo'nt of interest sho'&d 8e charge on this amo'nt as
6e&& 8eca'se the 8an1 gas 1ept!aside the amo'nt for that
8orro6er and can not ad5ance it an36here)
7% < &ecreasing Administrative Gpenses
Ban1 sho'&d their administrati5e e<penses) This 6as "s :
8i&&ion in the 3ear 900) That can 8e done 83 &3ing off the
s'rp&'s poo& of emp&o3ee 6ith go&den handsha1es scheme)
The 8ranches that are not m'ch 'sed co'&d a&so 8e c&osed)
0mp&o3ee can a&so 8e ho6 to contro& the 8an1 e<penses) That
6i&& gi5e positi5e res'&ts in the f't're)
7% #" *eeds to be ,leGible in credit +olicy
As mentioned ear&ier@ NBP is 5er3 conser5ati5e in ad5ances
and &oans po&ic3) It red'ces the in5estment opport'nities)
A&so &oans sho'&d 8e gi5en to the sma&& 8'sinessmen and the
agric'&t're sector at the &o6 mar1'p rate) It sho'&d adopt
f&e<i8&e credit po&ic3 6hi&e gi5ing credit to the agric'&t're
sector)
-/
Not on&3 it 6i&& 8e economi ca& 8't 6i&& a&so red'ce the e<tra
8'rden of 6or1 of the 8an1) It 6i&& a&so he&p in red'cing the
'se of e<cessi5e paper 6or1)
7% ## Improper &istribution of 9or:
Proper distri8'tion 6or1 &eads to s'ccess in e5er3
organi*at ion) Proper distri8'tion of 6or1 pre5ents the
emp&o3ee from o5er and 'nder 6or1 sit'ation) So for a
smooth r'nning of an organi*ation proper distri8'tion of 6or1
is the hint to 8e fo&&o6ed)
#'ring m3 internship I o8ser5ed that there 6as no proper
distri8'tion of 6or1 in the 8an1) I sa6 that some of the
emp&o3ee 6or1ed &i1e ants other sat id&e starting here and
there) So this created a &ot of o5er 6or1 sit'ation for 6hi&e
re&a<at ion for other)
7% #! Inter &epartmental Transfer
I 6atched d'ring m3 internship that@ there is n'm8er of
emp&o3ee 6ho ha5e 6or1ed on one seat for man3 a 3ear) It
can ha5e negati5e effects moti5ation of emp&o3ee 6ho is hard
6or1ing and inte&&igent) Ta1e the e<amp&e of ad5ances
section) In ad5ance section if the emp&o3ee is transfer after
si<th month or se5en month@ ho6 can he 8e a8&e to sho6 his
performances and ho6 can he 8e a8&e to 1no6 the 8an1
c'stomer in a short period of ti me)
7% #$ 'omplaints of 'ustomer
-;
There sho'&d 8e an informat ion des1 to pro5ide the
information and to recei5e the comp&aints of the c'stomer in
the 8an1)
There is no comp&aint 8o< a5ai&a8&e in the 8ranch and not an3
person appointed to hear the comp&aints)
05er3 person cannot go to the manager for the comp&aint
8eca'se most of the peop&e are hesitant) So I s'ggest
management to insta&& a comp&iant 8o< in the 8ranch@ and
recr'it a specia& person for that g'idance of the c'stomer
6hen the3 are 'na8&e to manage some diffic'&t ies in 8an1ing
matters)
7% #4 )rgani Iational 'ommitment
It is s'ggested that emp&o3ees 6or1ing on dai& 3 6ages 8asis
sho'&d 8e gi5en some 8enefits@ 6hich the other emp&o3ees are
getting) Their sa&aries m'st increase according to efficienc3@
performance and ser5ice)
7% #6 /anagerial (eadership
In the ana& 3sis@ 6e ha5e disc'ssed the diffic'&ties of the
assistant in ta1ing an3 initiati5eS therefore it is recommended
that the assistants sho'&d he gi5en specia& training to ma1e
them read3 for the &eadership)
7% #7 1ousing and 1ouse 1old 5oods loans
Ban1 sho'&d initiate these &oans 8eca'se most of 8an1Es
c'stomers are midd&e c&ass and the3 cannot afford to 8'3
ho'se or ho'seho&d goods at once 83 their o6n)
-:
7% #8 S)/ /)R Solutions / Improvements suggested
After the comp&etion of m3 internship in the NBP I am a8&e to
gi5e some s'ggestions for the 8etterment of the organi*at ion)
#'ring the internship 6e had disc'ssions 6ith different
persons &i1e manager@ operationa& manager different officers
emp&o3ees and c'stomers) In the &ight of these disc'ssions 6e
are a8&e to gi5e some s'ggestions 6hich are gi5en 8e&o6)
4se of modern techno&og3)
Training and #e5e&opment of 0mp&o3ees
Fre?'ent 7omm'ni cat ion
Promot ion on the 8asis of A8i&it 3
-
A R,R*'S
NBP ann'a& report (90$0%
NBP ann'a& report (90$$%
NBP ann'a& report (90$9%
)*(I* RS)UR'S
666) da6n) com) p1
666) s8p) org) p1
666) n8p) com) p1
666) on&ine68c) go5PdocsPfinancePfs) ratio
.0