INTERNSHIP REPORT

ON

National Bank of Pakistan.

SUBMITTED

BY

Usman Raza

ROLL NO: BBA-13-27

SESSION: 2013-2017

DEPARTMENT OF BUSINESS ADMINISTRATIONBAHAUDDIN

ZAKARIYA UNIVERSITYSUBCAMPUS, SAHIWAL
 PREFACE

The purpose of this report is to elaborate my internship that what I have done during my
internship. It includes different aspects start from the history, vision and mission, objective,
departments, financial analysis and the swat and pest analysis and after that conclusion and
some recommendation for the bank.

I have to join banking sector because of my personal interest and I think it is best for the
students of finance.

It was amazing experience for me to work in bank with such a cooperative staff. During my
internship, I have learnt a lot about the functions and operation of the bank.

This report explains about the things, which I have learnt, and about the practical experience.

I just wrote the issues, which I think, should be overcome and provide some suggestion and
recommendation.
 EXECTIVE SUMMARY

An internship is a work-learning arrangement in which career related work experience is

combined with prior academic knowledge. Internships give students a "hands on experience" in
a particular field of interest. Students may engage in an internship to gain work experience
while also earning academic credit

This report is concerned to a short-lived study of processes, roles, responsibilities and services
of National bank of Pakistan.

Banking plays very imperative character in the commerce and economic progress of a country.
Now-a day’s banks are expending different modern technologies, which affect the managerial
activities that are why I decided to do my internship training in the bank in order to gain practical
experience.

I did my internship in National Bank of Pakistan (District Court Branch) from 1 June to 15th of
July. So it was my first experience of work so hey rotated me in different departments like
Account opening clearing issuance of ATMS cheques books and lockers online transaction. The
staff made me learns the basics of different departments in this way. I faced a lot of difficulties
during the span of learning but I got full attention and support from the staff and they really
made me learn a lot. At the end of the internship manager gave me the internship letter and
evaluated my overall performance on an evaluation from prescribed by our university

Then internship report finishes with some commendation after documentation of problems that I
detected during the passage of my internship training at National bank of Pakistan.
Brief Introduction of NBP:

 Overview
 Business volume
 Competitors

Overview of National Bank of Pakistan:

“One way to keep momentum going is to have constantly greater goals”

 National Bank of Pakistan was established on November 9, 1949 as a semi public

commercial bank.
 The main purpose of the National Bank of Pakistan atitsinitial stage was to extend
credit to the agriculture sector.

Business Volume of NBP:

1. Paid-up capital is Rs.8969 millions.

2. NBP has net assets worth Rs.102459218.
3. Share Capital is Rs.8154319.
4. Earnings per share is Rs.23.34.
5. Reserves worth Rs.15772124.

Competitors:

 Askari Bank
 Habib Bank Limited
 United Bank Limited
 Muslim Commercial Bank
 Bank of Punjab
 Dubai Islamic Bank
 National Savings
 Allied Bank Limited
 Union Bank Limited
Training Program:

During the short time period of eight weeks of my internship at National Bank of Pakistan, I
was given an opportunity to work in following four departments of the bank.

1. HR Department

2. Accounts Opening Department

3. Government Department

4. Clearing Department

1. Tasks in HR Department:

• I match the entries in master file with the given voucher.

• I entered the expenses in their relevant accounts.
• I arranged the vouchers by date.
• I prepared debit and credit vouchers.
• I prepared office notes.
• I stamped different bills on the instructions of HR Manager.
• I wast old about how salary is estimated every month.
• I wast old about the whole procedure of staff loan issued to staff members.

2. Tasks In Accounts Department:

• I entered data of current and saving accounts into the computer system by using special
software called CIF.
• Provide information to customer what are the benefits for having account with NBP and
how can one open the account.
• I fill the account opening forms in.
• Recheck the forms to make sure that the forms are error free.
• I stamped the documents on the instruction.
• I checked the essentials to attach with the forms like ID card, Application form.
• Then I was told about to issue the cheque book.
3. Tasks in Government section:

• I learn how to behave with customers if they are in anger because usually pension
holders are aged people.
• I learned how to handle the documents like cheques, account information, stationary bill
etc.
• I observed the behavior of employees and customers.
• I learned how to keep the records
• I learned computer operating in this section.
• I learned how to manage the receipts and payments.
• I prepared some memos.
• In this department, I again prepared debit and credit vouchers.
• A major issue was balancing the payments. I assist for this also.
• I learned that it is of tremendous importance to keep the record of previous clearing in
hard form.
• I helped to keep the cheques separate which are brought in bank for clearing purpose.

4. Tasks in Clearing section:

• I assist in separating the fanfold and NIFT (National Institutional Facilitation

Technologies).
• I stamped the cheques for outward intercity clearing.
• I prepared some memos.
• I recorded intercity clearing entries in required register.
• I learned how to make bundle of outward clearing cheques.
• I learned those cheques which have been returned due to some reason must be
checked again.
• In this department, again prepared debit and credit vouchers.
• A major issue was balancing the payments. I assist for this also.
• I learned that it is of tremendous importance to keep the record of previous clearing in
hard form.
HRM Process in the Organization

“The Guidance of HRM Committee of Board is a fuel for HR

Team going forward with smart goals”

1. Human resource planning and forecasting

2. Employees recruitment & selection

3. Training & development

4. Performance management

5. Employee compensation & benefits

6. Organizational career management

7. Labor management relations

1. Human resource planning and forecasting:

Zero-base Forecasting:

This method issued to find out the future staff needs at National Bank of Pakistan by
considering the current level of employment as the starting point.

Bottom-up Approach:

It is a forecast method in which each successive level of the NBP, starting with the lowest and
forecast its employee requirements in order to ultimately provide an aggregate forecast of
employment needs.

Simulation:

Try out with real world situation through a mathematical model representing the situation.
Mathematical model Usage:

For forecasting HR requirements, Mathematical model is also used. It shows the connection
between needed employees and demands the number of employees.

2. Employees Recruitment & Selection:

Sources of candidates

• Internal Sources:

In this category, opportunity is given to NBP lower level managers by promoting them.

• External Sources:

In this area, opportunity is given to the people outside NBP.

3. Training & development:

Training need assessment:

In training need assessment following sources help HR Department

• New technology
• Customer complains
• Interview with managers
• Employee complaint
• Company Records
• 2.5 month Training for Selected Candidates.
• 1 month at IBP(Institute of Bankers Pakistan)
• 1.5 month at Staff College
• The staff college obtains low-ranking bank officers for more preparation in banking
sector with the course duration from six to nine week shaving 25 students in each
course.
• The bank also employs officers to attend banking tutorial both in Pakistan and out of the
country and it adds immense significance to the flow of thoughts, information
• National Bank of Pakistan has two essential training methods:
• National Bank of Pakistan implements off-job and on-job policies to educate middle and
higher level its workers.
4. Performance management:

“Performance management is the setting performance standards and

hopes/expectations”

Here are eight (8) situations to think when setting Performance and Standards of performance
are:

1. Achievable
2. Let for review and modify
3. Understood by the worker when performing job
4. Based on the job and not on the individual doing the job
5. As measurable and specific as possible
6. Should be time-oriented
7. Always in writing
8. Settled by both the supervisor and employee

• Performance management
• Human Resource Development section all the time takes chance to assess the
performance of human resources.
• The appraisal system also helps the management of the NBP to help

The HRD section of the NBP carries out the appraisal for the following
uses:

• It allows the employee, the Manager to take necessary about the improvement of
the performance.
• The system also assists in promotion, increment in salary of the deserving
employees after their assessment and also gets ready for the next person for the
succession plan.
5. Employee compensation & benefits:

• Travel /Meal /Housing Allowance

• Overtime Pay
• Benefits including : dental insurance medical vacation leaves retirement taxes
• Bonuses,Profit Sharing,Merit Pay
• Commissions
• Stock Options

6. Organizational career management:

Employee job changes

Job changes must be made in agreement with the public service rules
and policies in the classified service. Any individual selected or promoted
must be skilled as fit in accordance with and focus to the civil service
official procedure.

Job changes with the organization:

 Promotion
 Transfer
 Demotion

Promotion

In the merit based policy of 1999, in general appraisal of an employee was foundation of
following:

Points Average gained by the employee in his service during preceding three years

Points, he would get in an assessment by the promotion or encouragement committee.

 The given points by the promotion committee, never the less,

again a bridged the workout to automatic process:
 60% points were fixed for qualification, service timespan &
standard of service
 40% points were given to aim criteria. More improvements in the
plans are being considered.
Transfer

Transfers on request take place only on sympathetic and medical grounds even as another
cause is set off by the bank for meeting its administrative or organizational necessities that is to
fill the available vacancies.

Worker can remain posted in one unit for upto 3 years and in a division for up to 6 years, yet
some offices used to frequently transfer their employees from one unit/division to another.

Demotion

 Conditions to demote any employee:

 The demotion is asked for by the employee and is accepted by the hiring
authority.
 The employee position has been brought to an ended.
 The employee is put out of place by coming back to duty of another
employee entitled to the position.
 The employee is demoted by another employee with more superiority
during a decrease in manpower.
 The employee does not receive an acceptable trial service score.

7. Labor Management Relations:

A good affiliation is formed and it provides

1) Arrange variety shows for the employee’s families

2) Educational funds or benefits for the employees
3) Instant aid to any accident.
4) Incentives to on the job deceased
Critical Analysis:

No proper check and balance on employees discipline.

• There is a lack of motivation in the bank.

• Internees are not entertained well.

SWOT Analysis:

Here is the Swot analysis of National Bank of Pakistan

Strengths:

 Zonal Branch
 State bank Agent
 Maximizing Shares Holder's wealth
 Hiring Qualified Workers
 Government Based Bank
 Well defined Policies and Objectives
 Dress code
 Lockers
 ATM
 Western Union
 Pension Distribution
Weaknesses

 Poor Discipline/Punctuality
 Poor Dealing
 Lesser number of employees
 Nepotism
 Ambiguity in Assessment Procedure
 Security Cameras are good for nothing
 Critical Process
 Information Desk
 Compliant Box is not safe

Opportunities

 Deposit Mobilizations
 Introduce New Products
 Improved marketing Strategy
 Advertise the Products and Services

Threats

 Lower interest rates offered by other banks

 Threat of new
 Potential Development to substitute Products
 Political Influence
 Political Instability
 Rivalry among competing Banks
 PEST ANALYSIS

Political
 It is expected that employment practices may change.
 Because unionization is the major part of this organization and they show flexibility and
allow them to work effectively and it may affect the performance positively.
 Pakistan is politically very instable and in future it is expected that the interference of
government may increase and may affect the performance and profitability of the bank.
 Because of the political instability investors are decreasing their investment and reluctant
to invest due to lack of trust in the government so it’s not in the favor of NBP
Economic
 With the passage of time inflation is increasing and it will leads towards decrease in the
purchasing power of the people and result in decrease in the profitability of NBP.
 With the increasing rate of inflation staff cost is also increased and it will compelled the
staff for high salaries.
 Interest rate is high and it will reduce the loan rate and ultimately decrease the
profitability of bank.
 Devaluation of currency also affect the NBP profitably because it pressurize the
economy.

Social and cultural

 If we are talking about the management of bank so it depends upon the experts. No
doubt the management is good but not enough for compete globally. They lack the high
profile experts.
 Investment is decreasing not only due to political instability but also due to cultural stains
like saving for the future.
 Work place ethics are also decline due to the behavior of the people due to poverty and
short stamina and not enough training to the employees how to tackle every one.
 Lack of infrastructure and inadequate accountability and also lack of good governance
may help creditors to cheat at high level and they have to face high level of debt and
create bad repute in the mind of others.
 Freedom of authority may lead towards a high level of problems as everyone wants
power and there is less delegation of authority and decision making.
Technological
 Shortage of electricity is a big problem in Pakistan and may affect a lot.
 With respect to the technology NBP is the follower and follow others for the sack of
innovation and change in the technology and also the adoption of technology.
 As almost everything is computerized and they are doing well but not all the things are
computerized and customers may got the bad impact by this so they have to make
changes.
Conclusion:

I conclude:

• One of the best online banks in Pakistan is National Bank of Pakistan.

• It works according to rules and regulations set by State Bank of Pakistan.
• In my opinion, the future of civil lines branch is in danger.
• Poor customer relationship management, poor customer dealing, poor discipline are
some factors which can harm the branch
• HR department has become help less due to rigid and non-changing behavior of
Employees.
• Old employees do not want change actually

Recommendations:

• Regulatory authority is highly needed concerning the disciplinary matters.

• A committee of senior qualified expert staff should be physically present at bank to
receive complains by customers and catch the guilty person red handed.
• Complain box should be sealed.
• Facilities to specially old aged pension holders
• Security cameras should be technically alright and latest.
• Branch must review its Marketing strategy whenever any new entrance of competitor or
any production market is visible in market as substitute.
• NBP should introduced mobilization products.
• A check and balance should be imposed on all employees that all employees follow
rules and regulations.
• Training session should be held at different intervals in a financial year.
• Top Management as well as employees must follow the rules and regulation.
• Account opening, loan issuing and some other procedures should be more convenient
and flexible.
• A handsome amount should be charge to the guilty employees.
 • Any strategy implied for the overall benefit of organization should be accepted by
everyone, no one should have any objection on it.
• Appraisal should be fair, transparent, and secured.
• Separate information desk must be established in bank to facilitate the customers.
• Prompt reply to the queries of the customers.
• Favoritism and nepotism should be strictly dealt. Any employee whether of lower rank or
upper rank found involved in favoritism and nepotism should be removed on the spot.
• A separate investigation team should be formed to investigate the market situations and
keep the working be up to date.
• New qualified and competent employee must be hired to fill the gap.
• All branches of NBP should be online for customer convenience and for best link among
all its branches.
• Bank managers should not encourage the influence of customers with huge bank
balance.
• Higher authority should be free from any influence and pressure by politicians
• All branches should deal foreign exchange.
• Internal audit should be held and executed fairly.
• External audits of tremendous importance. It should also beheld fairly.
• Differential products should be introduced by NBP.
• Marketing Strategy should be improved.
• Facilitation should be provided to civil line branch.

 
 
Learning as an internee:

Duties and accomplishment:

My duties at the bank were of different types. I was rotated in different departments in different
weeks, so that I could get the exposure of different tasks in a bank. But my duties were always
supervised by the employees of NBP so that I do not make any major mistake, as I was an
internee and didn’t go through the training of three months, as all the employees of NBP get
before joining the bank. But still I had to deal with all the matters of the bank under their
supervision. My duties are mentioned as follows.

ACCOUNT OPENING:

During my first two weeks in the bank I did work in account opening department. During my
training in that department I was taught that how to open the account of the customers in the
bank. That whenever a customer comes how he should be explained about the types of
accounts and the benefits provided in each account. My supervisor used to tell me that how to
fill the form of account opening, and which documents are required for opening the account, the
information’s and all.

But I didn’t have the opportunity to enter the accounts opened on daily bases in the software
system because it’s a very sensitive issue and I was not so much trained that’s why I used to
only fill the forms and do stamping on them.

CLEARING DEPARTMENT:

 I also spent two weeks in clearing department. I learned to fill the deposit slips of current
and saving account in this department.
 I also learned to fill the cheques in this department, as most of the customers do not
know that how to fill the cheques and deposit slips mostly the labor class and others who
do baking by giving just thumb impressions).
 I also learned to do clearing of inward and outward cheques.
 I learned to make OBC’s
ONLINE TRANSFER OF MONEY:

In this department I learned to make transfer slips and see the online transfer of money from
one branch of NBP to another, I spent one week in this department.

I couldn’t get a chance to transfer money myself online because this is a very sensitive issue.
That’s why I was assigned the duty of filling the online slips of the customers, to tell them about
this facility and solve any of their quires. As online transfer facility is the point on which NBP
really has comparative advantage that’s why a lot many people used to come for online transfer
of money every day and as it’s a new service and people used to have many queries and I had
to solve them ,that’s why it kept me very busy all the week.

ATM’S, CHEQUE BOOKS AND LOCKERS:

I also spent two weeks in this department. I learned to send ATM request, cheques book and
lockers request of the customers. And I also learned to issue them the ATM card, cheques
books and to operate lockers. Whenever any customer used to come to collect his or her ATM,
cheques book then I used to take his sign on the record register, do stamping

 
 
 
 
 
 
 
 
 
References: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

ANNEXURE