Contents

CHAPTER - 1 ............................................................................................................. 6

INTRODUCTION TO REPORT................................................................................ 6

1.1 Introduction: ................................................................................................. 6

1.2 Purpose of study: .......................................................................................... 6

1.3 Scope of study: ............................................................................................. 7

1.4 Limitation of study: ...................................................................................... 7

1.5 Methodology of study: ................................................................................. 7

CHAPTER - 2 ............................................................................................................. 8

BANKING IN PAKISTAN ........................................................................................ 8

2.1. Origin of banking: ........................................................................................ 8

2.2. Definitions of bank: ...................................................................................... 9

2.3. Brief banking history:................................................................................... 9

2.4. Evolution of banking in Pakistan: ................................................................ 9

2.5. Nationalization of banks (1974) in Pakistan: ............................................. 10

2.6. Islamization of banking: ............................................................................. 10

2.7. Interest free banking: .................................................................................. 11

2.8. Organizational chart of bank: ..................................................................... 12

Annual Report (2016) ........................................................................................... 12

2.9. Objects and activities: ................................................................................ 13

2.10. Regional offices: ..................................................................................... 14

1
2.11. NBP retail products: ............................................................................... 16

1. NBP Advance Salary ..................................................................................... 16

2. NBP Saibaan: ................................................................................................. 16

3. NBP Karobar Scheme: ................................................................................... 16

4. NBP Kisan Dost: ............................................................................................ 17

5. NBP Student Loan Scheme:........................................................................... 17

2.12. Departments at NBP: .............................................................................. 17

2.13. General banking departments: ................................................................ 18

Types of Bank Account: ....................................................................................... 18

i. Saving Account: ............................................................................................. 18

ii. Current Account: ............................................................................................ 18

iii. Joint Account: ............................................................................................ 19

iv. Profit and loss Sharing Account: ................................................................ 19

v. Fixed Store Account: ..................................................................................... 19

Major Functions of Advances: .............................................................................. 20

2.14. Cash Department: ................................................................................... 20

2.15. Procedure of Cash Receipts and Payments: ........................................... 20

i. Token: ............................................................................................................ 20

ii. Cash Received Stamp: ................................................................................... 21

iii. Receipts and Payments: .............................................................................. 21

iv. Saving In Cash-Checking Thereof: ............................................................ 21

2
 v. Defective and Cut Notes: ............................................................................... 22

vi. Cash-In-Transit: ......................................................................................... 22

vii. Excess/Short Cash: ..................................................................................... 23

viii. Cash Balance Book: ................................................................................... 23

2.16. Foreign exchange/department: ............................................................... 23

1. L/C Dealing:................................................................................................... 23

2. Foreign Remittance Dealing: ......................................................................... 24

3. Traveler's Cheques: ........................................................................................ 24

CHAPTER -3 ............................................................................................................ 25

HUMAN RESOURCE MANAGEMENT ................................................................ 25

3.1. Recruitment: ............................................................................................... 25

3.2. Selection process: ....................................................................................... 25

1. Short listing of the applicant: ......................................................................... 25

2. Interviews:...................................................................................................... 26

3. Merit list:........................................................................................................ 26

3.3. Training: ..................................................................................................... 26

3.4. Transfer policy: .......................................................................................... 27

1. Inter transfer policy: ....................................................................................... 27

2. Inter departmental transfer ............................................................................. 28

3.5. Promotion policy: ....................................................................................... 28

3.6. Salary Administration: ............................................................................... 28

3
 3.7. Compensations: .......................................................................................... 29

1. Bonus: ............................................................................................................ 29

2. Provident fund:............................................................................................... 29

3.8. Allowance: ................................................................................................. 29

1. Medical Allowance: ....................................................................................... 29

2. House rent allowance: .................................................................................... 30

3.9. Staff loans:.................................................................................................. 30

1. House Building Loans: .................................................................................. 30

2. Conveyance Loans: ........................................................................................ 30

CHAPTER 4 ............................................................................................................. 31

SWOT ANALYSIS .................................................................................................. 31

4.2. Weakness:................................................................................................... 31

4.3. Opportunities: ............................................................................................. 32

CHAPTER -5 ............................................................................................................ 34

RECOMMENDATION AND SUGGESTION ........................................................ 34

5.1. Improvement in the quality of products and services: ............................... 34

5.2. Quantifiable deposit's collection target: ..................................................... 36

5.3. Improving target market: ............................................................................ 36

5.4. Enhancement of competitive advantages: .................................................. 37

5.5. Human resource policy & its implementation: .......................................... 37

5.6. Higher levels of motivation:....................................................................... 37

4
5.7. Customer orientation: ................................................................................. 38

5.8. Training employees: ................................................................................... 38

5.9. Recruitment strategy: ................................................................................. 38

5.10. Advances: ............................................................................................... 38

i. Business Hazard: ............................................................................................ 39

ii. Organizational Hazard ................................................................................... 39

iii. Financial risk: ............................................................................................. 39

iv. Collateral risk: ............................................................................................ 40

v. Documentation risk: ....................................................................................... 40

5.11. Quick processing of loan application: .................................................... 40

5
 CHAPTER - 1

INTRODUCTION TO REPORT

1.1Introduction:

National Bank of Pakistan (NBP) is one of the leading bank in Pakistan, working

smoothly and efficiently in the economy of the country which is subject to the

fluctuations most of the time. Now a days NBP is having the objective to focus on

consumer banking and their services, which gives them edge over the rest of the banks

in the country its consumers banking provides consumers with innovative saving

schemes, products and services

To fulfill this academic requirement and be a student of BBA (HRM), I did my

internship at the National Bank of Pakistan. NBP was established in 1949 and since

then, it has spent its network, becoming the largest commercial bank in the country.

1.2Purpose of study:

The purpose of the study is to work in real life situations and to learn banking practices

and together relevant information to complete the internship report and to observe,

analyze and interpret the relevant data in a competent and useful way.

In this context its objectives are:

 Analyze banking operations, i.e. operational analysis, financial analysis, etc.

 Develop concrete and feasible recommendations.

 Improve reporting skills.

 Work practically in an organization.

 Develop interpersonal communication.

6
 1.3Scope of study:

The study is limited to banking services for various banking products. Has tried all of

its limitations and collected the Bank's financial data and general statistics. Taking

into account the purpose of this study, it is in the Bank to understand the actual action,

which seems to be a comprehensive effort.

1.4Limitation of study:

This is an acknowledgment that research only seeks to be closely related to the

purpose of the study. The facts and figures in this study may be equally important, but

do not directly affect this conclusion, which is ignored.

The most important limitation facing the study is the inability to provide information

in the form of analysis and confidentiality of the Bank. Another important limitation

of research is the time constraints.

1.5Methodology of study:

During the internship at NBP Mansehra. The most important task is to collect as much

information as possible about the quality of the organization. To this end, I use some

techniques to collect the required data and conduct research. The methodology used

in this study is based on primary and secondary data.

1. Primary Data:

 Personal Observations

 Discussion and interview with Bank Personnel

2. Secondary Data:

7
  Brochures of the Bank

 Bank Manuals

 Internship reports on NBP available in Library

 Journals & Newspapers

 Internet

CHAPTER - 2

BANKING IN PAKISTAN

2.1. Origin of banking:

There are different opinions about the origin of the world "Bank". According to some

authors, the word "Bank" is derived from "Bank" or "Bancus", which means bank. It

was because few traders in Lombardy made money transactions in banks. If a

merchant's business failed, his "bank" was destroyed by the people. From this practice,

the word "Bankrupt" is developed. According to another opinion, this word "Bank" is

8
derived from the German word "Back", which means common group of actions. Later

this word "Back" was italianized in "Bank" or "Banke".

2.2. Definitions of bank:

"Financial institutions dealing with money and credit accept deposits from

individuals, companies and companies at lower interest rates and provide benefits that

require higher interest rates."

The use of customers to invest in investment funds of financial institutions, according

to the requirements of interest payments, exchange of currency and so on.

2.3. Brief banking history:

The consensus on the origin of the word "bank" has not yet been reached. Some

authors argue that the word comes from the word "Bancus" or "Banque", which means

a bench that further moves the bank business with Lombardy Jews. Other authorities

said the term "bank" was derived from the German "back", the "stock fund", which

was later converted to Italy by the German occupation of Italy as a "bank". The author

cites the Babylonians who started the banking system as early as 2000.

2.4. Evolution of banking in Pakistan:

The first phase of the banking sector in Pakistan is a very difficult day for the banking

sector in general. In 1947, almost from the outset, banks and financial institutions

across the country have a variety of economic needs.

In relative terms, the Pakistani region is relatively well established in 2012. In March

1947, regular banks in India had 3496 offices, of which up to 487 were now in the

territory of Pakistan.

The Reserve Bank of India is the central banking institution in India. At the time of

the split, it was decided that a smooth transition should continue to operate in

Pakistan's emerging countries until 30 September 1948.

9
In 1947, the banking industry suffered heavy losses due to uncertainty and

inadequacy. This has had a negative impact on bakery services in Pakistan. The

registered bank in Pakistan is transferred to India. In order to achieve a prudent exit

policy to bring about the collapse of the new government, India's banking business

closed quickly. Those who stay in the bank only on behalf of the company to clean

the business. As a result, the 487 pre-independence branches had fallen to just 195

branches before June 30, 1948.

2.5. Nationalization of banks (1974) in Pakistan:

Banking reform to transition stage and transition stage, eighteen months later, the

government will nationalize the banking system, the main objectives are as follows.

 Enable the government to capitalize on the capital of a small number of

wealthy bankers and achieve the rapid development of the national economy

and the more pressing social welfare goals.

 Distribute a fair reputation for different classes and regions.

 Coordinate banking policies in all areas of viable joint activities without

eliminating the health of banks.

2.6. Islamization of banking:

Another significant development in the history of the banking system in Pakistan was

the implementation of an interest-free banking business for specific commercial banks

on 1 January 1981. Subsequently, to eliminate interest from the National Trust Fund

for Investment, Pakistan Housing Construction Finance Corporation. Some changes

were made in the banking sector and other laws aimed at introducing a new banking

system that would confirm sharia. Promulgated the New Ordinance 1980 Fadoado

Laba.

10
All independent state-owned commercial banks have started operating the free

counter, and free counters have been operating in all state-owned commercial banks.

The National Bank provides funds to participate in the term certificate, as well as

promissory tickets supported by the Modaraba certificate.

In order to cover interest-free transactions, certain bank definitions such as creditors,

debtors, advances and deposits are revised. Provisions on the form of business that

may be involved in a banking company may have been modified to provide interest-

free loans to members and due students.

2.7. Interest free banking:

In 1981 the introduction of a new concept of interest free bank, so far, has established

a good foundation for the implementation of new trends and technologies that make

the results of the system oriented. New products and their system consumption are

making the Bank of Pakistan comparable to several modern counterparts in any

developed country

11
2.8. Organizational chart of bank:

BOD

ExecutiveBoard

CEO

DivisionalChiefs

ProvincialChiefs

CircleChiefs

BranchManagers

Annual Report (2016)

12
 2.9. Objects and activities:

The Bank is giving all keeping money administrations of trade and business managing

an account.

Passable in the nation, which include:

 Handling of treasury exchanges for the Legislature of Pakistan as specialist to

the State Bank of Pakistan

 Providing administrations under a Trust Deed as Trustee to the National

Speculation Put stock in (NIT) including safe guardianship of securities in the

interest of NIT.

 Accepting of stores of cash on present, settled, sparing, term store and benefit

and misfortune sharing records.

 Borrowing cash and masterminding fund from different banks.

 Advancing and loaning cash to its customers.

 Financing of activities, including specialized help, venture evaluation through

long haul here and now credits, term back and Musharika authentications, and

so forth.

13
 Buying, offering, managing, including going into forward contracts of outside

trade.

 Financing of occasional yields like cotton, wheat, rice, sugar stick, tobacco,

and so forth.

 Receiving of bonds, contents, assets, and so forth for safe care.

 Carrying on office business of any depiction other than overseeing operator,

in the interest of customers including Government and neighborhood experts.

 Generating, undertaking, advancing, and so on of issue of offers and, bonds,

and so on.

 Transacting assurance and repayment business

 Joint wandering with remote merchants, specialists and organizations for its

portrayal abroad.

 Providing customized Haj administrations to expecting Hajis.

2.10. Regional offices:

14
Source (Annual Report 2016)

15
2.11. NBP retail products:

1. NBP Advance Salary

i. fifteen months bring home pay rates ahead of time.

ii. Minimum documentation.

iii. Repayable in 5 years

iv. No handling charges; no securities, no ensures, no protection.

v. Mark-up charged at 11% for each annum on lessening balance technique.

2. NBP Saibaan:

i. Can be used for home purchase, home building and home decoration

financing.

ii. The repayment period is 3-20 years.

iii. Loans up to Rs. Ten million.

iv. Marker options are fixed / floating available. The price is between 10%

and 15%.

v. Minimum approval and payment time.

vi. Limited to positive areas where there is no resale and foreclosure related

issues to protect the interests of banks.

3. NBP Karobar Scheme:

i. Financial services for non-employed citizens of Pakistan between the ages

of 18 to 40.

ii. The maximum limit is R.s 200,000.

iii. Repay in 2 years and 5 years.

iv. Women are also eligible.

v. During the financing period, the first year receives 6% of the annual

income and 2% of the KIBOR.

16
 4. NBP Kisan Dost:

i. For farmers to provide production, development purposes, the

purchase of tractors, pipe wells, the purchase of seeds, fertilizers,

pesticides, etc., and the purchase of farm tools, micro-agriculture,

loans, for the construction of fish pond warehouse construction loans

for livestock, milk processing, Biological gas equipment and so on.

ii. Interest rate 13% per year.

iii. Farmers can get loans at the doorstep.

iv. Loans can be used for agricultural passbooks, gold jewelry and paper

security.

5. NBP Student Loan Scheme:

i. Funding of Pakistan selected / HEC approved university students.

ii. All eligible female college students conduct specialized studies.

iii. Minimum files.

2.12. Departments at NBP:

There are several basic principles that are used as an organizational base:

functionality, products, processes, geography and clients. The process of dividing

individuals into separate units and departments to promote the achievement of

organizational goals is called a department.

17
In the NBP, the departmentalization is done in a purely functional way. In the form of

departmental functions, people and resources with common supporting activities are

grouped together.

Some of the important functions of NBP are discussed in the next section.

2.13. General banking departments:

Types of Bank Account:

I. Saving Account:

A savings account is an account that a customer deducts his excess funds from his

daily expenses.

The account can be operated by depositing the minimum cash for Rs. 5 / -. A small

portion of the allowable interest in the balance.

ii. Current Account:

The current account is checked once a day by the customer and is usually operated by

a business person. It can run at least the rupee. 500 / -

The account holder may issue any number of unfair minimum balance limits for

withdrawals or payments. This account is not allowed to use interest.

18
iii. Joint Account:

A shared service happens when at least two than two clients have one record.

The gatherings to a shared service are considered in law as they are one individual.

iv. Profit and loss Sharing Account:

This can be worked by individual, company or association by saving Rs. 100 / - or

higher. The holder of this record will get the benefit of its sum, or it will bear the

misfortune in general. Then, an individual is similarly a member in benefit and

misfortune.

The registration holder can withdraw to Rs. 15,000 / - each month there are eight

withdrawals, in the event of a higher withdrawal, notification of seven days before is

vital. This register is working under a framework free from intrigue.

v. Fixed Store Account:

In this record a sum is kept into the Bank for a settled timeframe. The settled period

might be three months, a half year, one year, two years, five years and the sky is the

limit from there. The Bank permits a higher rate of enthusiasm for bigger period.

At the season of working on account the Bank issues store endorsements for the period

and sum.

The record holder cannot pull back his sum before the predetermined period, but rather

a similar Bank will permit advance against that authentication. Bank is obligated to

give enthusiasm on this record on development date.

Advances department:

The advanced department deals with all financial accommodation and credit facilities.

The prepayment is a loan to both parties; the quantity may be small or large. These

19
parties can borrow through the specified procedure, the parties show all the assets,

and then the bank 14% interest rate loans.

The bank to the National Bank of Pakistan to pay 10% interest, the remaining 4% of

the interest should be the bank's profits.

Major Functions of Advances:

 Funding exports and importing countries.

 Provide funding for industry, trade and agriculture.

 Loans for students to receive higher education.

 Loans for business people.

 Loans to farmers.

 Loans for housing construction

2.14. Cash Department:

2.15. Procedure of Cash Receipts and Payments:

The cash department is the largest sector in the banking sector. The Bank's basic

objective or objective is to make a profit. Therefore, from the customer to receive

money, investment management. The situation passed by the Bank is as follows

i. Token:

The payment is only for the token. The token is issued by the staff member. These

branches have the existing token library engraved with their own branch code. When

the teller pays the tokens, he ensures that the code number next to the token number

is correct.

Check the token every day by the person responsible for checking the cash and count

the number displayed in the existing stock in the furniture and fixtures register.

20
 ii. Cash Received Stamp:

"Cash receipt stamp" is still kept by officials. The cashier cannot handle the stamp.

Only after you have satisfied yourself, the stamp will be affixed to the payment slip

or voucher, and the cashier or voucher received by the cashier or the agent who

received the cash has already received the cash.

The appropriate sign displayed on the cash counter of the branch clearly shows to the

depositor that the cash receipt will be invalid if only one signatory is signed. The

depositors thoroughly check the cash deposits they receive, which have two

authorized signatures.

Where there is no branch of the cashier's hand that the stamp is still kept by someone

other than the person receiving the cash. In the afternoon, this stamp is safe with the

cash on hand.

The records in the receiving cashier are traced by the person in charge of the cash

receipt stamp in accordance with the figures in the voucher or the arrears in the

payment slip.

iii. Receipts and Payments:

Before the payment of all checks, the teller or payment officer himself confirms that

the check has been officially released, supervised and canceled by the authorized

person, and the manager or deputy manager is responsible for checking the cash and

verifying the total receipt and payment of the cashier's book.

iv. Saving In Cash-Checking Thereof:

The Supervisor or the official who controls the money verifies the trade physically the

night before the trade is saved.

21
Free and unsealed notes from all sections and additional notes sewn from Rs. 100 / -

the division is physically posted. In addition, the number of glued packages and the

coin-containing stationary bags are properly checked and the money position is

counted before the trade is covered. It is the moral duty of the Administrator and the

Sub-Supervisor to see that, until such time as the trade is sheltered, an Officer will

remain dependent on the branch. The hours of the branch of the official ship were

resolved in such a way that not less than one officer stays in the branch until the trade

is safeguarded.

At the moment the clerk goes to lunch, be safe: in the money legitimately and do not

leave it in his drawers or in the box. All branches are granted the authorization of the

furthest point to save money. No branch is allowed and you are entirely prohibited

from keeping the overabundance money to your recommended restriction.

v. Defective and Cut Notes:

The bank does not issue bad bills to the NBP branch and receives sufficient fresh and

reissued notes from the National Bank of Pakistan to meet specific customer and

general public requirements.

vi. Cash-In-Transit:

Cash is accompanied by a gunman's officer and cashier when cash is provided to the

branch office or when excess cash is withdrawn from the branch office. The box

containing the cash is locked. Whenever the truck is moved from the truck to the

branch, and vice versa, the gunman with cash and firearms, as the gun stands at the

guard for some distance, may cause any robbery to fail.

22
vii. Excess/Short Cash:

If the manager finds that there is too much cash, the cash is balanced at the time of the

cashier. In this case, the excess account is deposited into the grocery deposit account

with a credit token.

If any claim is received by the branch, it shall be paid to the claimant by withdrawing

the entry of the miscellaneous creditor's -account after thorough review.

A similar situation is that if the cash is short, then the branch debits the debit account

through the miscellaneous bond. Short-term cash is immediately reported to the area,

and the entry of the deceased debtor is reversed in accordance with the instructions of

the regional office / headquarters.

viii. Cash Balance Book:

A detailed record of the daily cash balance and the denomination of the instrument is

recorded in the cash book by cash check and cashier and manager.

In this regard, the branch indicates that the cash balance book should be kept in the

locker and key in the steel cabinet and shall not be retained in the cash safe of the

branch office. The formal memorandum of such cash balance signed by the manager

is also prepared and attached to the general voucher of the branch.

2.16. Foreign exchange/department:

1. L/C Dealing:

NBP is committed to providing its commercial customers with the widest range of

options for currency transfer. If you are a commercial companies then our letter of

credit service is what you are looking for. With competitive advantage, security and

ease of use, NBP L / C is the best way to conduct business transactions.

23
 2. Foreign Remittance Dealing:

For the convenience of home remittance customers, the National Bank of Pakistan has

adopted a series of measures to improve family remittances through the banking

system, in line with SBP directive / instructions, timely and timely remittance to

beneficiaries

3. Traveler's Cheques:

Traveler's check is a negotiable instrument and there is no limit to the validity of the

check. NBP's all 700 branches offer rupee traveler's checks. This can be honored in

all 400 branches of NBP. There is no limit to the purchase of this check. It is one of

the safest ways to carry money.

24
 CHAPTER -3

HUMAN RESOURCE MANAGEMENT

HRM is a series of activities aimed at attracting, transferring and maintaining effective

labor. HR are critical to effective organizational functioning. The National Bank of

Pakistan is located at the headquarters of Karachi. The department manages all

employees of the National Bank of Pakistan. The NBP HRM Office performs the

following functions.

3.1. Recruitment:

Recruitment is a process of attracting qualified personnel to apply for an open job.

Since the National Bank of Pakistan is a state-owned bank, it is possible to advertise

vacancies that can be filled through the news media.

The choice of selection depends on the position to be filled. The required

qualifications and age are specified in the advertisement. The same experience as a

computer programmer and typist is considered necessary.

3.2. Selection process:

Selection process is divided into following steps:

1. Short listing of the applicant:

The bank management examines the candidate's application and meets the required

candidate to send a test notice. In the first step, tens of thousands of candidates apply

for limited positions. The call is sent by the headquarters to the candidate who only

meets the advertising job requirements.

25
The tests were conducted by the Pakistani Banking Council under the supervision of

the Pakistani Banking and Finance Services Committee. In the test, the applicant is

further included in the list.

2. Interviews:

For interviews, only those candidates are known to qualify for written examinations.

Candidates present different types of questions to the interview committee, for

example:

 Questions about personal background, additional general activities during

education, and personal contact.

 Questions about the subjects or courses studied by the candidate.

 Questions about important national and international events.

 The role of banking in the economic situation.

In addition to these questions, the individual interests of the candidates are discussed

and efforts are made to understand the individual.

3. Merit list:

After the end result, successful candidates will be sent a contract letter asking them to

sign an agreement with the bank.

3.3. Training:

Training is a vital and necessary activity in all organizations. It plays a big role in

determining the effectiveness and efficiency of the business. Training is an organized

procedure through which people can learn knowledge or skills for a purpose. The goal

of the training is to achieve a change in his well-trained behavior.

26
After recruiting staff, after picking and guiding, he has been trained and developed to

better adapt to work and organization. Staff College to accept the junior bank staff to

further develop the banking business.

The course lasts six to nine weeks, about 25 students per course. College is a

residential primary school, providing university atmosphere measures, help to convey

the sense of friendship, which in the sense is very valuable.

Record the staff college also from abroad and abroad to receive interns are also

interested in helping to create valuable reference banking business.

The design of the College of Staff and Workers is not only to impart discipline, but

also to the quality of decision making. Employees are one of the most important

institutions of the bank, because students take higher positions in their careers and

therefore learn more responsibilities.

Banks encourage their officials to attend bank seminars in Pakistan and abroad and to

vigorously absorb new concepts and their application in our environment.

3.4. Transfer policy:

A change is the work of an employee from one job to another or from one branch to

another. In addition to moving from one job to another, it may involve promotion,

demotion, or no change in working condition. There may also be two types of transfers

under the NBP employee's request.

1. Inter transfer policy:

NBP management often transfers workers from one plant to another. Regularly adjust

managers to improve their management skills. In some cases, effective workers are

sent to poorly performing stations.

27
 2. Inter departmental transfer:

Interdepartmental transfers involve branches from one department to another or from

one department to another. The purpose of this is to promote the staff to make it more

comprehensive.

3.5. Promotion policy:

Promotion cannot be based on ratings, but on performance. The main criteria for

promotion are performance and personal skills, and grades are taken into account, but

this is secondary.

A person's career is a very personal and extremely important element of life. If these

individual decisions are based on an objective assessment of current and potential

competencies, productivity and morale can be promoted.

Promotions are a term that covers the changes, which require greater responsibility,

usually with higher pay, better terms and conditions of service and, therefore, a higher

status.

The various purposes of the promotion are:

a. Provide satisfactory service to employees who deserve promotion.

b. enhance experience and ability.

c. Provide computer workers to the organization.

d. Find the best and the right candidate.

e. increase their interest in the field of speed.

3.6. Salary Administration:

Remuneration is the financial remuneration provided by the organization to

employees in exchange for work. Salary is an important and complex part of

28
organizing employee relationships. Must be the basic compensation for employees to

provide a reasonable means to maintain a living standard.

NBP has a clear understanding of its responsibilities and wishes to have a good

reputation for employers through remuneration, employee benefits, pensions and

additional benefits.

Banks also provide employees with the most needed job security, and for future

security, banks also provide employees with a favorable and cooperative career. Staff

pay is quite adequate, regularly adjust the inflationary pressures.

3.7. Compensations:

1. Bonus:

Is based on the bank to earn profits each year, in accordance with the Board approved

the way to pay. The bonus paid to employees is a regular function of the bank policy.

Bonuses really help motivate employees.

2. Provident fund:

All staff members must pay 7.5% of the salary to the provident fund. These

contributions are pension ability.

3.8. Allowance:

Special allowances for holders of staff allowances are of various types:

1. Medical Allowance:

The bank will repay the claim by the employee he and his family to provide the actual

reimbursement costs.

29
 2. House rent allowance:

The bank has built many colonies in different places to provide housing facilities for

its employees. Rent paid to the staff can not stay in the bank residential area. The rent

of the house is very reasonable.

3.9. Staff loans:

The bank provides employee loans based on service terms and employee

qualifications.

NBP offers two types of loans:

1. House Building Loans:

Provide basic housing to employees. Only part of the wages. When they complete the

installment, they become the owner of the house. Loans can be easily acquired for

building.

2. Conveyance Loans:

The bank also provides transshipment land to staff through very simple and

convenient terms and conditions. The staff member gets the loan to buy the vehicle.

The repayment process for these loans is simple.

30
 CHAPTER 4

SWOT ANALYSIS

SWOT is an abbreviation for organizational strength, weakness, opportunity and

threat. SWOT analysis includes determining the company's internal strengths and

weaknesses and its external opportunities and threats. This is a tool that can quickly

understand the company's strategic situation. The SWOT analysis of the NBPS branch

is as follows:

4.1. Strengths:

 NBP is one of Pakistan's oldest banks; therefore, people have greater

confidence in the bank.

 NBP acts on behalf of the National Bank of Pakistan. SBP does not exist.

 This is the only bank that offers loans for gold jewelry.

 NBP has more deposits and more confidence.

 Collecting utilities as government departments.

 Branch staff are motivated to make it one of the best affiliates.

4.2. Weakness:

 No complaints about customer complaints. This will cause and damage its

image.

 Marketing efforts does not exist.

 NBP is under political and bureaucratic pressure.

 Partiality and nepotism in appointments, assignments, promotions and

increments.

 According to the regulations, no rotation is allowed.

 Investment plan lacks interest.

31
  Poor quality of service due to lack of staff and poor quality during peak hours.

 NBP lacks a computer network.

 Outdated systems and procedures.

 Decision makers have no right to limit.

 Delayed decision making.

 Remark The counting machine is not available.

 Employees face concerns about narrowing.

 No use of IT tools. Such as computerized and ATM facilities.

 Unequal distribution of work

 Employees lack training in important areas of day-to-day activities.

4.3. Opportunities:

Unable to control but can take advantage of the positive external conditions of the

NBP as follows:

 If you provide new plans for overseas people in Pakistan, you can get

remittance business than any other bank or Hundi business.

 Focus on microfinance.

 New marketing plan for investing in new projects.

4.4. Threats:
Small Banks are not a threat to NBP’s reputation as the Customer Pool of NBP is full
of huge investors so these small banks cannot threat the integrity of NBP. But the
major rivals of the Bank include HBL and Bank Alfalah which can be a threat to NBP
as they are emerging very fast. Some of the other treats that NBP is facing are:

 Political Instability in the Country:

Political Instability in the Country is a very major threat for the Bank as the Bank is

acting as the trustee of State Bank Of Pakistan.

32
  Newly emerging competitors:

Increasing competition is resulting in loosing the customers.

 Lack of Modern Techniques:

NBP lacks the Modern Banking Techniques. Which gives its competitors an

advantage to take over the bank in customer number.

 Increasing Customer Complaints:

Customers are complaining about the incompetency of the staff.

 Competition is increasing day by day:

New banks are opening, competition is increasing, NBP needs to improve quality or

they will end up losing their existing customers too.

33
 CHAPTER -5

RECOMMENDATION AND SUGGESTION

To guarantee possibility of a task, any proposal or suggestion, given for it ought to be

upheld by its usage design. An execution design comprises of activity situated devices

and methodology, which are particular and clear. An execution design implies that

everything aside from assets and making of move to begin work is prepared, which

demonstrates that usage design is the spirit of an undertaking.

The Activity get ready for the suggestions examined in the former section thus take

after:

5.1. Improvement in the quality of products and services:

To enhance the items and administrations of NBP it is critical that representatives

must be appropriately prepared. Prior to the presentation of marked items we should

first attempt to enhance the present items being offered and enhance the nature of

34
administrations. NBP must understand that the managing an account industry has

proceeded in innovation upgrade and if NBP needs to contend it excessively should

enhance its administrations and be imaginative.

A change in innovation in all the branches of NBP will assume a critical part in

enhancing the nature of administrations.

With a specific end goal to enhance the current administrations the accompanying

strides can be taken:

 Higher loan costs to be offered on stores.

 Introduction of delicate term advances.

 Increase in number of ATM machines.

 Elimination of check book charges.

 Elimination of bank administration and coincidental charges.

 Lots of change in the NBP Site.

The accompanying are a few recommendations for new administrations:

 Payment of checks in any branch all through the nation.

 Customer helpdesk office at all branches.

 House Building Fund Advances at lessened loan fees

 Car Financing Plans at lessened loan costs

 Introduction of Web/Web based managing an account

35
  Introduction of Phone managing an account

5.2. Quantifiable deposit's collection target:

Accumulation of stores as a target speaks to anticipated level of administrations to be

sold. Setting this goal is basic since it sets the tone of the whole execution get ready

for the bank. Everything that follows in the arrangement is intended to meet the goal

of gathering stores through money related items from characterizing the measure of

the particular target advertise and setting up promoting destinations. This will likewise

decide the measure of publicizing and supports spent.

5.3. Improving target market:

Most of the present target market of the National Bank contains the lower wage class.

Since NBP's accentuation is mostly to provide food the necessities of the lower pay

gathering, its picture is seen as a conventional bank by the center and higher pay

individuals. With a specific end goal to beat this, the bank needs a general change in

its picture, nature of administrations and conduct of the administration toward

customers.

Another approach to enhance the objective market of the bank is by successfully

promoting. The bank needs to bring a more up to date picture through broad

communications utilizing TV, Web, daily papers and so on and by accepting powerful

promoting groups, who are well ready to persuade.

1. Corporate Customers

2. Small entrepreneurs

3. Partnerships

4. Other Associations

36
 5.4. Enhancement of competitive advantages:

By presenting web saving money, on-line keeping money and portable managing an

account. NBP can contend with other private banks like MCB, Askari business bank

and so on who are showcase pioneers in e saving money. Alongside the presentation

of data innovation NBP ought to set up a chain of computerized teller machines

(ATM's) in every single significant city of Pakistan which can separate the imposing

business model of MCB and in this way empower clients to execute round the clock.

5.5. Human resource policy & its implementation:

Keeping in mind the end goal to influence enlistments and advancement to free from

any impact, weight and biases, the bank needs its own arrangement of models and all

around created human asset approach. It must be guaranteed that there ought to be no

deviations from the approach and principles. Exceedingly qualified, legitimate, and

fair work force should direct meetings and execution examinations. The

administrations of outside offices can likewise be gained for determinations and

enlistments. Establishment of Investors Pakistan can be utilized for this reason. The

work arrangement ought to be free from sexual orientation predispositions and the

two men and ladies be similarly urged to join the bank.

5.6. Higher levels of motivation:

Keeping in mind the end goal to build the level of inspiration of the representatives,

few stages ought to be taken. For this reason, motivating forces ought to be reported

for accomplishing targets. Focuses are dispensed for performing great and are

considered for advancements. Administrators at the branch level and higher experts

should direct a meeting with subordinates once every week. They ought to talk about

what should be done to increment and enhance the execution of the bank.

37
 5.7. Customer orientation:

There exist here and now connections between the financier and the client. The

Hierarchical system is to get an ever increasing number of clients and all the while,

old clients are lost. It has been watched that another client costs five times more than

the old clients do. It is, along these lines, prescribed to hold the old clients and keep

up a client database for future reference.'

5.8. Training employees:

Legitimate preparing of representatives by NBP is the need of great importance.

Extraordinary preparing and refresher courses ought to be organized at staff

universities for no less than 10 days in the whole year with uncommon accentuation

on client introduction and item improvement.

5.9. Recruitment strategy:

The bank ought to entirely take after legitimacy strategy for the enrollment of new

representatives. Government ought to maintain a strategic distance from obstruction

into the bank's undertakings. New workers ought to be absolutely chosen on justify

premise. For this reason, focused tests ought to be directed.

5.10. Advances:

The bank embraces extraordinary hazard by propelling credits. In the event that the

indebted person neglects to reimburse the advance, the bank loses its cash bringing

about diminished venture open doors for the bank. It is extremely hard to recognize

every one of the dangers related with the advances by depending just on quantitative

information. The bank frequently depends just on money related investigation and

subsequently disregards subjective examination and different dangers. The blend of

38
both subjective and quantitative investigation can help recognize right kind of

borrowers.

The bank ought to consider the accompanying dangers previously propelling cash to

borrower:

i. Business Hazard:

This sort or hazard incorporates industry chance, showcase hazard and providers

chance.

ii. Organizational Hazard:

This sort or hazard incorporates the administration dangers, connection deliver with

the bank and with other bank.

iii. Financial risk:

This sort or hazard incorporates the investigation and computation of different

proportions like:

 Inventory turnover proportion.

 Current proportion.

 Liquidity proportion.

 Profitability proportions.

 Debtors turnover proportion.

 Efficiency proportions and so forth.

39
iv. Collateral risk:

This sort or hazard incorporates sort and nature of security, genuine possession,

hypothecation, vow and in particular the attractiveness of these securities.

v. Documentation risk:

This sort or hazard incorporates checking whether the reports are grumbling, stamped,

legitimately substantial, appropriately saw and so forth.

5.11. Quick processing of loan application:

Banks having abnormal state of result in low benefits since renounce venture openings

and pay markup to contributors. Subsequently, keeping in mind the end goal to build

benefits credit applications ought to be prepared rapidly. The fundamental

documentation is brisk and credit endorsement specialists ought to expeditiously

choose whether to give or to cannot.

40