INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN MAIN BRANCH SWABI (0406)

SUPERVISED BY SIR FAHEEM ZEB

SUBMITTED BY KAMAL AHMAD ROLL NO: 19058 MBA (FINANCE) SEESION 2009-11

DEPARTMENT OF MANAEMENT SCIENCES HAZARA UNIVERSITY MANSEHRA

INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN MAIN BRANCH SWABI (0406)

Internship Report Submitted To the Department Of Management Sciences for the Partial Fulfillment of the Requirements for the Degree of Master of Business Administration

DEPARTMENT OF MANAEMENT SCIENCES HAZARA UNIVERSITY MANSEHRA

COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY MANSEHRA

DEDICATION

I dedicate my efforts and hard working to my beloved parents, respected teachers and great friends whose love, Prayers and supports have a great contribution in my carrier development. Kamal Ahmad

PREFACE

This is a compulsory obligation of MBA (Finance) program to complete an internship in finance and give report on its activities. This requirement provides me a chance to explain the student of MBA with practical working of an organization.

Apparently, NBP being a large organization of Pakistan became the best choice for me. I performed my practical work of about two months in NBP Main branch SWABI. During my internship I was rotated in different sections of finance & advance department and got some understanding of their operation and procedures.

The staff of NBP was very much supportive to me. They provided me with guidance and related material to write a report. I feel satisfaction to convey my sentiments that it was got a lot time in my career.

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AKHNOWLEDGEMENT

First of all on the completion of my report I am very thankful to all those people and their sincere cooperation that they provide on various stages. The problem which is faced by every student is the selection of a report. I am very thankful to my honorable supervisor Mr. Faheem Zeb and Asad Shah Jahan for helping me in the time of uncertainty. During the execution and preparation of my report. I had a real chance to learn from his huge knowledge and vast experience.

Then I am very thankful to all staff members of national bank main branch SWABI they guide me and provide me valuable information which helpful in the preparation of my report.

Finally I am very thankful to almighty Allah who gives me strength to complete my task successfully.

Kamal Ahmad MBA (Finance)

III

TABLE OF CONTENTS
Dedication Preface Acknowledgement Table of Contents Executive Summary I II III IV VIII

Chapter 1: Introduction of Study

1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8

1
1 1 1 2 2 3 3
4

Introduction Purpose of the Study Scope of Study Objectives of the Study Limitation of the Study Benefit of the Study Research Methodology
Scheme of the Report

Chapter 2: Evolution of Banks in Pakistan

2.1 2.2 2.3 2.4 2.5 Introduction Definition of Bank Evolution of Banking in Pakistan Banking Growth during (1948-1970) Nationalization of Banks (1974) in Pakistan 2.5.1 2.5.2 2.5.3 2.5.4 2.5.6 2.5.7 Islamic Banking Comes in Banking Sector Disinvestment and Deregulation of Banking Interest Free Banking The history of National Bank of Pakistan Objective of National Bank of Pakistan The Board of Director of National Bank of Pakistan

6
6 6 7 7 9 11 12 12 12 14 14

IV

Chapter 3: Departments of NBP

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 Introduction Clearance Department Advances Department Remittance Department Human Resource Management Deposit Department Foreign Exchange Department Traveler Cheques Ail Transfers Trade Finance Departmentalization Receipt Payments

15
15 15 15 16 18 18 20 21 21 21 23 24 24

Chapter 4: Financial Analysis

4.1 4.2 4.3 The five year performance glance of a National bank of Pakistan Ratio Analysis of National Bank Those parties which is interested in the ratio analysis 4.3.1 4.3.2 4.3.3 4.3.4 4.4 4.5 Trade creditors Suppliers of long term debt The investors Management

26
26 27 27 27 27 28 28 28 37

Ratios Analysis Summation

Chapter 5: SWOT Analysis of NBP

5.1 5.2 Introduction Strength of National Bank 5.2.1 5.2.2 Oldest Institution Alternate Duties in SBP Absence
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38
38 38 38 38

5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.3

More Deposits than Other Banks Employees Benefits Broad Network Strictly Followed Rules & Regulation Professional Competence Healthy Environment Relationship between Staff and Other Employees

39 39 39 39 40 40 40 40 40 41 41 41 41 42 42 42 42 42 43 43 43 43 43

Weaknesses 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7 5.3.8 Lack of Marketing Effort NBP under political pressure Inefficient Employees Inefficient Counter Services during the Rush Hours Insufficient of Computerized Network Insufficient of Modern Equipment Uneven Work Distribution ATM (Automatic Teller Machine)

5.4

Opportunities 5.4.1 5.4.2 Electronic Banking Services Micro Financing

5.5

Threats 5.5.1 5.5.2 5.5.3 Emergence of New Competitors Downsizing Customers Complaints

Chapter 6: Recommendations and Suggestions

6.1 6.2 6.3 6.4 6.5 6.6 Introduction Professional Training Designation of Authority Performance Appraisal To Solve the Problem of Space and Furniture Transfer of the Employees
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44
44 44 44 45 45 45

6.7 6.8 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.21 6.22 6.23 6.24 6.26

Changes in the Policies Need of Qualified Staff The Bank Link with the Head Quarter Credit Cards Interest on Overdraft Clean Loans Cash Financing Reducing the Administrative Expenses National Bank needs to be Flexible in the credit Policy Technological Advancement for National Bank Staff Relationship The Distribution Improper Work Inter Departmental shifting of work Foreign currency Account Marketing Policy There is no Complaints desk for the Customer Organizational Commitment

45 46 46 46 46 47 47 47 47 48 48 48 49 49 49 50 50

Chapter 7: Activities Performed in NBP Main Branch

7.1 7.2 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.3.6 Issuing Of Cheque Book Account Opening Remittances Department Demand Draft Payment order Mail transfer Telegraphic Transfer Deposit Section Pension Section

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51 52 53 53 54 54 55 55 56

Bibliography

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VII

EXECUTIVE SUMMARY

One of the most important functions of the bank is to do as financial agents for their customer. And get reward which they offer .Bank Performed a key role in the economic development of the country. A strong economy depends on a good banking system. NBP is one of the leading banks in Pakistan, and it is consider one of the best banks in south Asian region. My report consists on the various functions which are performed by national bank. My report is mainly consisting on secondary data with use of primary data. My report is objective in nature and gives subjectivity on financial analysis. First part consists on the evaluation of bank. Function and services in second part. The third part is about financial analysis and recommendation is given. The NBP is one of the leading commercial banks in Pakistan which consist of round about one thousand two hundred branches all over Pakistan.NBP perform various function for his customers. The commercial banking is stated as a conventional business. One of the major functions of the NBP is the custodian of the public fund and these funds are safe in the bank. The banks advance the fund to the needy person and make living. The bank performs all these function efficiently and effectively.

VIII

CHAPTER # 1

INTRODUCTION OF STUDY

1.1

Introduction

This is an essential requirement for the MBA degree offered by the Hazara University. The duration of internship is six to seven weeks. The internship is important for the student to know about the bank discipline and practice of knowledge of bank how bank can perform their work.NBP was established in 1949 and expand its network and NBP become the largest commercial bank of the country and offer different product of service to its customer.

1.2

Purpose of the Study

Internship main purpose together relevant information about National Bank of Pakistan Practical work an organization. Develop interpersonal communication.

1.3

Scope of Study

As an internee of National Bank of Pakistan the main task of my to know general procedures of national bank of Pakistan .These includes advancing, agriculture loan for the farmer,remittance,account opening,deposite, foreign exchange. Similarly different aspects of overall of NBP are also covered in this report.

1.4

Objectives of the Study

Study of National Bank of Pakistan. To know about the various function and also practical knowledge of National Bank of Pakistan.

1.5

Limitation of the Study

This study was conducted in accordance to the objectives of study. In study we may not include broad explanation of facts and figure due to the nature of study .secondly, the limitation, which affects the study restriction on mention on every fact of the bank problem of the secrecy. The availability of required data was a problem in all documents and file are kept strictly under lock and key due to their strictly confidential nature and the third problem of short time period also makes the analysis restricted one cannot analyze all the operation of a bank in a very short time of seven weeks.

Something is better than nothing. No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the nature of the study. Secondly, the limitation, which affects the study, is the restriction on mentioning every fact of the bank due to the problem of secrecy of the bank. In addition, the availability of required data was a problem as all the documents and files are kept strictly under lock and key due to their strictly confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as one cannot

properly understand and thus analyze all the operations of a bank just a very short time of eight weeks.

1.6

Benefit of the Study

Internship will give benefit to the finance student because in bank everything you can done practically and also the financial analysis of this report comprehensively encompass all respect of financial analysis. The study of NBP Main Branch and working is an internee gives me a lot of benefit.

1.7

Research Methodology

The internship report is based on seven weeks internship program in National Bank main branch Swabi. The methodology reported for the collection of primary as well as secondary data. The information is personally collecting by interviewing of all officer and manager while working as in internee of NBP Swabi main branch.

I.

Primary Data:

The primary data collect from personally visit to Swabi Main Branch where is Im working as an internee.

II.

Secondary Data:

Secondary data collect from manual, magazines, annual report of NBP and internet.

1.8

Scheme of the Report

SECTION 1 Chapter 1:
Chapter first is an introduction of report, Background, purpose of study, scope, methodology, limitation, scheme of the report.

SECTION 2 Chapter2:
In this includes the brief history of banking, evolution of banking, Nationalization of banking in Pakistan, History of National Bank of Pakistan, Mission Statement, and Objectives function of National of Pakistan.

Chapter3:
In the third chapter departmentation of NBP is explained and the services of NBP of Swabi main branch (0406).

SECTION 3 Chapter4:
Chapter five includes the SWOT (Strengths, Weakness, Opportunities, Threat) analysis of NBP.

Chapter5:
In this chapter include financial analysis of National Bank of Pakistan.

SECTION 4 Chapter 6:
In this chapter we add finding and conclusion Chapter 7: In chapter seven recommendation and suggestion of all aspects national bank are given.

CHAPTER: 2

EVOLUTION OF BANKS IN PAKISTAN

2.1

INTRODUCTION

The word bank derived from the word Bancus or Banque which means a Bench. The Jews in Lombard transacted the business of money exchange on market place and if the business failed, the people destroyed the bench. Some of other people opinion about the bank then German word which means joint stock fund. After that the German occupied major part of the Italy the word Back is italicized into (Back).The need of bank begin when it realize importance of money as used as a medium of exchange. When Babylonian develops the banking system 2000 B.C .Guarantee provide to the borrower or the pledge of his goods or valuable. Where the people deposited their money and provide security to the depositor. The bank started his work form the southern Europe Geneva became and Venice became the most important market .the modern banking start from the14th century in Barcelona.

2.2

Definition of Bank

A bank is a financial institution which deals with money and credit. The bank collects money from depositor in low interest rate and gives money to the borrower in high interest rate. A bank is dealer in between the borrower and lender. The borrower of one and lends to another. Take deposits accounts. Take current accounts,

Issue and pay Cheques Collect Cheques crossed and uncrossed form the customers.

The bank includes every person, firm or company is a place of business where the credits are opened by deposits and collection of money or currency. The subject of bank is to paid or remitted on cheques, loaned on stocks, bill of exchange, promissory notes are received from discount or sales.

2.3

Evolution of Banking in Pakistan

The evolution of banking of Pakistan is started when Pakistan is not in stable position. The banking started his operation in 1947; country possesses full range of banking and financial institution deal successfully with various needs of the economy. In March 1947 there were 3496 offices of Indian scheduled banks and 487 were in Pakistan. In 1947 at the partition India and Pakistan country suffer to uncertainty and instability of the banking sector. So that is the main problem for banking sector of Pakistan. They had registered their offices in Pakistan. Some bank winding up their business.

2.4

Banking Growth during (1948-1970)

The separation country a committee was immediately setup to formulate scheme of central banking legislation for Pakistan. Many specialist opinion that the acute shortage of trained staff, the of establishing a central bank was not workable and the best that could be attempt was the setting up of currency board until the sufficient stuff that could organize to operate central bank. The NBP has setup under the ordinance in November 1949.National Bank started his six offices in East Pakistan. Special role assigned to the
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new institution, exact position for the traditional practices and the Governor of the state Bank of Pakistan appointed to the head of board of director in 1950.To promote the growth the State Bank and support the government and development of new institution quickly. November 1952, the national bank of India in a short time afterward, in November 1952, Governor of state bank an activity for the function as the president of National Bank of Pakistan.

The state of Pakistan sponsored to the establishment of specialized credit institution in the field of industry and agriculture. The banking act was passed December 1948 to control the operation of banking companies in Pakistan. The expansion of banking services in Pakistan the lack of trained personal and also state of bank of Pakistan training scheme which repeated in every year and turned out of a large number of banker. So the first new commercial banking is national commercial bank that is established and registered organized bank. A completion of ten year working of national of bank established there were only 195 bank offices in existence. The end of June the bank offices increased 308, of which Pakistani banks 230 against 25 in mid 1958.The end of June 1958 Pakistani held 62% of the total bank deposits an responsible for 68 of total bank credits. Ayub khan government took over in 1958,the expansion of banking system in Pakistan the first new bank is UBL( United Bank Limited) was established. 1960-65 in this five year the structure in Pakistan made quickly. The extended and six new offices they were located in Peshawar, Quetta, Khulna, Rawalpindi, Lyallpur, and Chittagong. The number of bank 434 at the end of June 1960 to1591 in June 1965.The several new banks were added in scheduled banks.

The new two banks is commerce bank and standard bank. The economic growth of private enterprise the bank credit and private sector increase from Rs.1454 million to Rs 5762 million. The total banking credit expansion during the period amount Rs.4320 million and while the given annual expansion Rs.873 millions. We compared to the annual average increase from the preceding five year.

Thus the total expansion in bank credit to the private sector during this period amounted to Rs. 4300 million, which gave a annual expansion of Rs. 860 million compared to the annual average increase of Rs. 144 million over the preceding five years. Banks deposits increased from Rs. 2,493 million to Rs. 6883 million during the five years period ended June 1965 compared to Rs. 231 million in the proceeding five years. The ratio of time deposited the total deposited in June 1965 the percentage is 49.3 as the percentage in early 32.04 percentage in early five year. The investment is almost equal to their advances in June 1960.Remarkable. Change occurred during that period of composition of deposits. A deposit becomes greater than demand forming about 57 percent age of the total deposits.

2.5

Nationalization of Banks (1974) in Pakistan

The nationalization of banking in Pakistan (1974) they were difficult 18 months and 10 days of the old government to nationalized the banking system in Pakistan, and the following main objectives is to enable the government to use the capital in the hand of a few rich banker for the quickly economic development and the urgent more social welfare objectives for the country. Divide in to credit into the different region and sector.
9

The act of banking in Pakistan is called the nationalization of banking system in Pakistan. Management and ownership and control on the all the bank standing transferred and authority in the federal government .under the act of nationalizations the chairman director and executives of different banks, other than those appointed by federal government removed their offices and all local persons dissolved. At the time of nationalizations on December31, 1973 there were only 15 Pakistani commercial banks and 3328 offices all over in the Pakistan and 78 offices in the foreign countries.

Banks in Country:
National banks of Pakistan United Bank Limited Muslims Commercial Bank Habib Bank Limited All Habib Bank Limited Standard Chartered Bank Bank of Khyber Bank of Punjab Soneri Bank Limited First Woman Bank Meezan Bank Limited Allied Bank Limited Australia Bank Limited Sarhad Bank Limited

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The 2nd phase of Banking is on completed 31st Dec 1974, when the commerce bank merged (mix up) in the United Bank Limited. Final of banking thats 3rd Phase when the Standard Bank Limited merged (mix) in the Habib Bank Limited.

2.5.1 Islamic Banking Comes in Banking Sector:

The major development of banking systems is Islamic banking system in the Islamic banking which free from interest in Jan1, 1981.The effort to elimination of interest from the operation of National Investment Trust, and House Building Finance Corporation of Pakistan. The other law that include in the Islamic Banking that is ushering in the new banking system which confirm is sharia. The Companies ordinance 1980 a new law Modaraba in comes in the Islamic Banking .The separate free interest comes to operate all the nationalized commercial banks. The State of Pakistan provides finance against term deposits and also against Promissory Notes which supported by the Modaraba certificate. For the purpose to cover interest free transaction certain banking that are Creditor, advances credits, deposits, and debtor were revised. Private limited company named is Banker Equity Limited 970 provide financial assistance to the free basis of interest loan to the industrial sector.

In Islamic banking process different financial schemes introduced:

Modaraba financing. Hire purchases financing. Musharika financing. Specific purpose Modaraba.

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2.5.2 Disinvestment and Deregulation of Banking in

The role of public sector in the economy is extended and the Banking Sector is more earning potential in the private sector the process of the privatization restarted by the Muslim League Government in 1991.The Disinvested of Muslims Commercial bank into two phases while Allied Bank Limited is sold to its employees. In the banking sector several new Banks were established.

And the still process is going on .National Bank of Pakistan is the government other than the State Bank of Pakistan. The performance NBP analyzed in the following chapter.

2.5.3 Interest Free Banking:

The interest of free Banking introduced in 1981.The new product and their system of consumption making Pakistani Banking compare to the other several same function in

any developed world.

2.5.4 The history of National Bank of Pakistan:

The National Bank of was established 9 November 1949. Government of British devalued the currency in September 1949.India devalued of his rupees but Pakistan did not .The crisis of both country in trading. To solve the problem that is to expert jute .The National Bank of Pakistan maintains its position as the premier bank determined to set higher standard of achievements. It is the major business partner for the government of Pakistan to the emphasis on the fostering Pakistan economics growth through aggressive and technological oriented product and services, and balance lending policies and
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services offered through its large network of branches locally and internationally. National bank of Pakistan was undertaken managing currency Chest or Sub chests and treasury Operation. The deposits of National Bank of Pakistan are about 3.2 % of total deposits of all Banks in 1949, which rise 39% in 1952. The Growth of deposits accompanied is increase in bank portfolio in advances. National Bank of Pakistan lent out to Yarn, Iron, Textile, Steel

Which played a pioneer role in the agriculture system and the commerce. National Bank of Pakistan advances reached to the Rs.556.5 million in December 1959 which was is the one third of total bank credit.

Mission Statement of National Bank To make the Bank complete and competitive with all international Standard in performing, quality of, operations, staff, financial strength. And products and services to develop a culture of excellence in every spare of activity of the bank.

2.5.4.2 The Goal and Objective of National Bank of Pakistan To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offerings.

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2.5.6 Objective of National Bank of Pakistan

The National bank of Pakistan is also a commercial organization and the main objective is profit maximization. And can achieve in two ways: i. ii. . By increasing deposits. . By charging interest on loans provided to the private sector and business community.

2.5.7 The Board of Director of National Bank of Pakistan

NAME Ali Raza M. Ayub Khan Mian Kausar Hameed Ibrar A. Kirmani Tariq Kirmani Haniya Shahid Naseem Nazrat Bashir S. M. Rafique (Source Annual Report 2010) DESIGNATION Chairman & President Director Director Director Director Director Director SEVP & Secretary to BD

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CHAPTER: 3

DEPARTMENTALIZATION OF NBP

3.1

Introduction

In this departmentalization chapter include the services of National Bank of Pakistan. In which National Bank offers his services. Its important for the organization to earn profit.

3.2

Clearance Department

The end of 2nd war the banking system growth very fast .Then the use of cheque is increase .The clearance performed by state bank of Pakistani. There is no more office of SBP then it performed by the National of Pakistan. The person who drawn cheque from the same bank on the payee deposited on the same account of the drawer. And they remain unchanged because of total assets and total liabilities of the bank.

3.3 Advances Department

The department of advances is the most important department of bank. The function of that gives the loan to the customer. Advances are more important of for the bank because it is the major source for the earning profit. The bank takes the surplus money it a lowest interest rate from the customer and then the advances give it a high interest rate. We know that the bank is profit seeking institution.

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3.4 Remittance Department

In this department we transfer of money from one bank to another bank or transfer for one branch to another branch. Mean of remittance when we send the sum of money in payment for some item. a) Pay order b) Mail Transfer c) Demand Draft d) Telegraphic Transfer e) Call Deposits

Pay Order:
The way of money transfer is pay order which provide by the national bank of Pakistan. Charges of pay order are low of NBP as we compare to other bank. The charges of pay order that charge by the national bank Rs.50 on the amount of 50000 thousand and if the amount is increase from the 50000 thousand. And the charges for the student on the payment are Rs.25.Its is the best way for money transfer.

Mail Transfer:
If the money not required immediately the remittance can be transfer the Mail Transfer. The officer of the bank sends instruction in writing by mail to the paying bank for the purpose of the specific amount of money. The charges of mail transfer minimum charges is Rs. 42

16

Demand Draft:
If you want to send the money safe, fast way sends money transfer. You can purchase Demand draft at a suitable rate. And every person can purchase Demand draft from National Bank of Pakistan.

Telegraphic Transfer:
Telegraphic Transfer is the quickest way of money sending. Telegraphic Transfer is an order of the bank to pay the sum of specific money to the specific person. Vouchers are prepared and sent through the ordinary mail for the purpose to keep the record. The charges has been Taken from the customer and no excise duty is on the Telegraphic Transfer. The use secret Code is known by the branch manager. The charges on Telegraphic Transfer minimum is Rs.127.

Telegraphic transfer or cable transfer is the quickest method of making remittances. Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to the specified person. The customer for requesting TT fills an application form. Vouchers are prepared and sent by ordinary mail to keep the record. TT charges are taken from the customer. No excise duty is charged on TT. The TT charges are:

Telegram/ Fax Charges on TT = Actual-minimum Rs.125. Cable telegram transfer costs more as compared to other title of money. In cable transfer the bank uses a secret system of private code, which is known to the person concerned with this department and branch manager.

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3.5 Human Resource Management:

Human Resource management is also important role in every organization. The customer attitude can be win or loss. And create favorable condition when the attitude is positive they can good effect on the organization.

3.6 Deposit Department:

In the deposited there are following activities 1) Account Opening 2) Current Account 3) Saving Account 4) Issuing of Cheque Book 5) Cancellation of Cheque 6) Cash

Account opening:
Account opening its the relationship of customer to the bank. Before the opening of an account we see the nature of business when we open the account of customer. When

we open the account we can see the following things. Verification of National Identity Card Service Card Two Picture of Customer Next of Kin

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 Specimen Signature Initial Deposit Customer Qualification Operating of Account Pay-In-Slip Book Pass Book Issuing Cheque Book

Current Account:
In Current Account no profit or loss on the deposit and open for the government employer for purpose to transfer of salary and easily drawn for his account. And the banker did not any profit on these deposits.

Saving Account:
The saving accounts open with very small amount of money. In this types of account profit on deposits of customer and not restriction of withdrawn of amount. The profit paid after six month basis and issued cheque book to the depositor for withdrawn.

Issuing of Cheque Book:

Issuing of cheque book issue by this department and the requirement of check book the account holder must be sign requisition. And the entry should make in the cheque book.

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Cancellation of Cheque:
Cheque cancel in this department casher see its the cheque sign also cheque the amount of cheque is this amount is correct or not .And also check the account of person who cash the cheque.

Cash:
The cash department deals with the deposit, payment of cheque.

3.7 Foreign Exchange Department:

The function of this department mainly deals with the foreign business. The main functions of this department are: i. ii. iii. Letter of Credit Dealing Foreign Currency Dealing Foreign Remittance

Letter of Credit Dealing:

Letter of credit dealing is the best way for the money transfer. So NBP is one of leading bank as we compare to the other bank also provide security, and a competitive rates.

Foreign Currency Dealing:

In this department we deal with the foreign currency such as euro, dollar, and pond.

Foreign Remittance:
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Foreign Remittance is also most important department of NBP. In this department we transfer

of money from one bank to another bank or transfer for one branch to another branch. Mean of remittance when we send the sum of money in payment for some item.

3.14 Traveler Cheques:

A traveler cheque is negotiable which issue by the NBP and there is no limits and restriction on the period of Traveler cheques. No limit of on the purchasing of Traveler cheque. It is the safest way of money carrying.

3.15 Ail Transfers

Ail transfer is another department of National Bank of Pakistan the moving of money of fast and rapidly through mail transfer. The rate of NBP Can also good is we compare to the other bank. The exchange rate of NBP is minimum is Rs. 50 and the postage charge of mail transfer is Rs.75.

3.16 Trade Finance:

Trading Finance are two types. a) Agricultural Finance b) Corporate Finance Now we will discuss these two types.

a) Agricultural Finance:

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National Bank of Pakistan gives Agricultural loan to the farmer to produce more food and also uses high quality of seeds for best Agricultural product in the world.

Agricultural Credit:
The purpose of the Agricultural loan has two main objectives

Providing trustworthy relationship with Agricultural customer. To use the money for the further development and for more grow of production .And also better techniques learn for the better production in the country.

Agricultural Credit (Medium Term):

To increase Production and development of agricultural need of the farmers. To fulfill the need of water. Increase of Wells. Increase Farm power. Increase the loan for the development of Tea plantation. Increases of Fencing. Use of Solar energy. Equipment for sprinklers.

Farm Credit:
National bank also providing loan is three to one year of regeneration bases.
i)

Operating loans

ii) NBP also give loan for the development of Land. iii) Also NBP equipment loans to purchase of tractors and other equipment for the land.

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iv)

Livestock loans to purchase feeding for livestock.

Production Loans:
The production loan thats all the needs of seeds, fertilizer of farmer covered.

Cash and Gold Finance:

These types of loan national bank give against the gold of customer. National bank takes gold the people for the security of money when they give to the people who need the need of the agricultural needs.

Advance salary loan:

The advance salary always gives to those employ who are the government servants. The salary loan is up to 15 months.

3.17 Departmentalization:
When we divide the organization into the parts so that the function is called departmentalization of organization

Departmentalization of NBP

Cash Department:
The cash department of National Bank of Pakistan performs the following function.

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3.18 Receipt:
In the receipt department the money either deposited or drawn from bank and its record of money should be kept. So this can be performing by the cash department. The ledger account of every customer is different and separate ledger cards of customer.

3.19 Payments:
It is the primary contract of the banker to repay money and received for the customer account usually by worship of his cheques.

Types of Cheques
The banking sector in Pakistan deals with three types of cheques, Bearer cheques, Order cheques, Cross cheques. Now the explanations of these cheques in detail

a. Bearer Cheques: In this type of cheque can be cash every person in the counter and collected through clearance department.

b. Order Cheque: In this type of cheque can be cash by that person in the name of account holder not another person can be cash those type of cheque. The bank cheques the sign of Account holder and then payment on the cheque.

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c. Crossed Cheque: Cross cheque cannot cash at the counter first the cheque add to the account and then you cash at the counter .Two person account at the same bank the account holder issue cross cheque to the favor of another account holder . Then the cheque will be credit to the account holder who issued the cheque and debited for the account holder who has actually issued the cheque.

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CHAPTER: 4

FINANCIAL ANALYSIS

Financial analysis is unstable according to the exacting interest of the political analyst which is always involve in the use of different financial statements from the balance sheet and income statement .Balance sheet is the summary of the assets, liabilities and the owner equity of a business at the point of a time. And income statement summarizes the revenues, expenses over the particular period of time. Which is a theoretical framework for the financial analysis provides to the analyst for the structuring of financing.

4.1
Items

The five year performance glance of a National bank of Pakistan

2010 471950 395668 175678 156784 19456 8670 3456 9.34 4% 1745 2009 432502 375678 156545 151238 17345 6458 2845 7.56 2.5% 1453 2008 421560 365860 181345 104567 13765 4367 2378 5.47 1.6% 1343 2007 421512 353750 152345 67453 12453 1645 1656 4.23 1.07% 1267 14576 2006 395100 347874 134576 45238 11678 945 1234 0.91 0.56% 1179 13789

Total Assets Deposits Advances Investment

Share Holder Equity

Pretax Profit After Tax Profit

Earnings per share

Return on Assets No of Branches

No of Employees 21345 19876 16768 (Source of annual report 2006, 2007, 2008, 2009, 2010)

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The performance of national bank is higher from year to year and the total assets of national bank increase as we compare to the previous year of national bank. The moment is upward if we draw the graph. The branches of national bank are increase if we see the previous year of national bank because the performance of bank is an increase. If we compare national bank with other bank the position of national bank is good and now it is one of the best banks.

4.2 Ratio Analysis of National Bank

The ratio analysis tells us about the strengths and weakness of a firm. They can build the goods relationship among the balance sheet and the profit and loss account and create making decision for the organization so for the organization used the analytical tools. So these analytical tools are used by the management which is called ratio analysis. The purpose of analysis depends upon on the nature of analysis.

4.3 Those parties which is interested in the ratio analysis

4.3.1 Trade creditors
The trade creditor is the first party which is interested in the ratio analysis, because it is the firm ability to recover their claim as soon as possible.

4.3.2 Suppliers of long term debt

After that the supplier which is interested in the ratios analysis the second party is the supplier which is interested in the ratio analysis since it is mostly concerned with the survival and solvency of the firm. And analyze the firm skill to generate cash to pay
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interest. Long term creditors analysis is the historical financial statement to make analysis about the future solvency.

4.3.3 The investors

The investor is a party which is concerned with the ratio analysis. Because when the investor invest their money in the firm share investor invests money in the firm share are most tax which stable the growth for earning. The investor always focused on the analysis of the firm current profitability and future profitability.

4.3.4 Management
The next important is management that how much successfully use the accessible the resources or not and also the financial position is sound are not. The management also needs to receive financial analysis in order to control the plan effectively and efficiently.

4.4 Ratios Analysis

When we comparisons the ratios analysis of a bank then we compare with the balance sheet and income statement of a bank.

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Cash Ratio:
Cash ratios shows that the cash have sufficient for to meet the current liabilities or not. And the cash ratio calculating formula is cash/ current liabilities.

Table 4. 2 Year Cash liabilities Cash Ratio 2006 2007 2008 2009 2010

62345687 68976820 76900312 95834219 198970562 48954781 49578345 52859305 61065498 75687310 1.27 1.39 1.45 1.57 2.63

Graph 1

3 2.5 2 1.5 1 0.5 0 Year 2006Year 2007Year 2008Year 2009Year 2010

It means that how much cash on hand to meet the current liabilities. So increase in the cash which meet the current liabilities.

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Gross Profit Margin Ratio

The gross profit margin shows that how much profit earned in the cash. The formula of gross profit is Gross profit/ interest earned.

Table 4.3 Year Gross profit Interest earned Gross profit margin% 88% 92% 84% 78% 63% 2006 2007 2008 2009 2010 44774117 72748697

46835923 48822082 43560690 42503078 52681679 52665648 51678591

37058030

Graph 2
100% 80% 60% 40% 20% 0% Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

Form the calculation of ratios its clear the gross profit margin ratios to the downward trend also how much they used their deposits to earn the interest. The falling of profit ratios show that the performance of national not good.

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Net Profit Margin

Net profit margin shows the firm productivity of sales divided by the interest earned after all taxes and income. The net profit margin can be finding from this formula net profit after taxes/ interest earned multiply by 100.

Table 4.4 Year Net profit Interest earned Net profit Margin % 33.57% 38.94% 36.17% 40.77% 24.97% 2006 11608634 34578965 2007 16839284 43234674 2008 18456973 51023839 2009 16004569 39253483 2010 19567303 78357202

Graph .3
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Year 2006 Year 2008 Year 2010

The ratio of net profit that calculate we can see that the performance of national bank is not good in 2010. The downward of trend show that the profit is low per rupees because the NBP gives us high advances to the people.

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Return on Equity
Return on equity can be calculated when we compare the net profit after tax with the share holder equity. To find the return on equity we used this formula profit after tax/ share holder equity multiply by 100.

Table 4.5 Year Net profit Share holders Equity Return on Equity 38346879 54386590 68758822 82348849 95760792 35.36 % 33.73% 27.52% 20.56% 20.71% 2006 2007 2008 2009 2010

13562920 18349929 18929202 16938282 19836037

Graph .4

40.00% 30.00% 20.00% 10.00% 0.00% Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

From the data the return of equity is downward tendency of national bank of Pakistan because of low net profit they have earned. The earning power of the share holder investment reducing and could not good impact on the national bank expenditure and role and order in the country.

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Return on Assets
Return on assets ratios shows the bank efficiency and how they used their assets efficiently. Return on assets we calculate profit after tax/ total assets.

Table 4.6 Year PAT Total Assets Return on assets 2006 2007 2008 2009 2010

132476586 187673733 189345775 165635595 195822344 587637337 698347235 756375723 827357538 956221109 0.023 0.026 .025 0.20 0.21

Graph .5

0.2 0.15 0.1 0.05 0 Year Year Year Year Year 2006 2007 2008 2009 2010

From the calculating of return on assets we can observed that the national bank cannot use asset effectively so the organization earned low profit. The downward of trend due the bank cannot efficiently use the investment.

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Debt to Equity Ratio

The debt of equity ratios shows that the how we can distribute the amount among the creditor and share holders. The formula that we use for finding the debt equity ratio is total debts/ share holder equity

Table 4.7 Year Total liabilities Share holders Equity Debt to equity ratio 2006 2007 2008 724820358 2009 52370951 2010 825727380

535702957 658842020

458038285 49236739 91.07 89.71

783583838 92.78

923547278 83.50

802382382 80.67

Graph6.

95 90 85 80 75 70 Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

The ratio of debt of equity ratio is not insufficient 2008 is high and in 2010 it is decreasing. The creditor interest is low the lower ratio and the high level of financing which is provided by the share holder so the graph is downward.

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Debt to assets ratio

The ratio of this shows that the degree of the organization assets of financed are debit. And the debt to asset ratio can calculate the total debt/ total assets.

Table 4.8 Year Total liabilities Total Assets Debt to asset ratio .83 .84 .81 .844 .843 2006 579238023 575725242 2007 563974038 646529033 2008 635603827 756230332 2009 724794733 826680368 2010 834984933 936345713

Graph .7
0.86 0.84 0.82 0.8 0.78 Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

The reducing of ratio shows that the risk is high the reason is that the deposits in the bank extra. So the deposits of customer are liability on the bank.

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Assets Turnover Ratio

The association of net sale/ revenue to the total assets is called total assets turnover ratio and the ratio calculate from this formula total revenue/ total assets.

Table 4.9
Year Total revenue Total Assets Assets turnover ratio 2006 33692665 577718806 0.068 2007 43788628 635132711 0.078 2008 50569481 762193593 0.076 2009 37058030 817758326 0.084 2010 77947697 944232762 0.092

Graph .8
0.1 0.08 0.06 0.04 0.02 0 Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

The calculation of ratio shows that the bank uses the total assets which can generate the revenue. So the performance of national bank is better from year to year and 2011 they can generate high revenue because of using the total assets.

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Dividend yield:
Probable annual dividend and divided by the market price of the stock. The formula form which we calculate the dividend yield ratio is total dividend/ market price

Table 4.10 Year Dividend Yield 2006 2.32 2007 3.09 2008 1.83 2009 2.13 2010 3.89

Graph .9
4 3 2 1 0 Year 2006 Year 2007 Year 2008 Year 2009 Year 2010

From the calculating of ratio 2010 dividend is better than from the previous year. 2010 is good because of number of share is excellent but in the 2008 it is decreased reason was that high market price and low dividend.

4.5

Summation

The financial analysis of national bank we can briefly discussed and also calculating the various ratios, interpretation of these ratios, and use the different tool and method in order to reached to the conclusion.

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CHAPTER: 5

SWOT ANALYSIS OF NATIONAL BANK

5.1

Introduction

SWOT analysis is stand for the Strengths, Weakness, Opportunities, And Threats. The SWOT analysis tells about the organization strengths and weakness what the organization opportunities are. In SWOT analyses the best strategies complete an organizations mission by: a) Exploit the organizations Strength and Opportunities. b) Neutralize the threats. c) Correcting or avoiding his weakness.

5.2 Strength of National Bank:

5.2.1 Oldest Institution:
It is the oldest institution in Pakistan and the first government national bank. The customer of that bank is more than the other bank in Pakistan. Oldest institution so it is also positive point for the bank.

5.2.2 Alternate Duties in SBP Absence:

National bank performs his duty very well in the absence of State Bank of Pakistan and additional services for the customer and also for the other Bank customer.

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5.2.3 More Deposits than Other Banks:

National bank is oldest bank in the banking sector in Pakistan. The deposits of national bank are greater than the other bank because it is the government bank. The customer can happily comes and open the account here. And the confidence of customer is increase time to time so its deposits increase than the other bank.

5.2.4 Employees Benefits:

National bank extra benefits to its employees. Two extra benefits that are given one is on the Eid-ul-Fitar & the second on Eid -ul- Azha .So this is the additional benefits for its employees and a foundation for the motivation of his employees.

5.2.5 Broad Network:

National bank his broad network throughout the country .And the branches of national of bank Is greater than the other bank in Pakistan. So the customer can easily come to the national bank because its provide services at the nearest place to customer satisfied.

5.2.6 Strictly Followed Rules & Regulation:

The rules and regulation strictly followed the employees of National bank which imposed by the bank. The discipline wise environment of National Bank is good. The image of National Bank good impression on the overall organization.

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5.2.7 Professional Competence:

The employees at NBP here have a good hold on their descriptions, as they are highly skilled Professionals with background in business administration, banking, economics etc. Professional competencies enable the employees to understand and perform the function and operation in better way.

5.2.8 Healthy Environment:

The working condition of the employer of National Bank in a favorable condition that can give better output for the organization. The environment of informal take effects on the performance of the employer in positive way.

5.2.9 Relationship between Staff and Other Employees:

The relationship of staff with other employees is very good and they corporate with each other in every matter. The relationship of manager and staff is good so it is also plus point for organization.

5.3 Weaknesses:
5.3.1 Lack of Marketing Effort:
The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the period marketing in now becoming a part of every organization.

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5.3.2 NBP under political pressure:

The political pressure of few parties and government and authority affecting the bank on the negative way. Sometime it provide loan under pressure, which leads irregular and adjusted feeling the bank employers.

5.3.3 Inefficient Employees:

The employer of National bank is inefficient because when the customer come to the bank for the opening account no one here to open the account for the customer so it is also weak point for the National Bank.

5.3.4 Inefficient Counter Services during the Rush Hours:

Inefficient service during the rush hour in the national bank people waiting on the window and the staff busy with phone and not working properly. And the staff not quick to control the during the rush hour.

5.3.5 Insufficient of Computerized Network:

Another weak point of National Bank is insufficient of computer network to fulfill the need of employees. During my internship always problem on the computer network and people waiting whole day and also shortage of computer and computer expert to solve the problem.

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5.3.6 Insufficient of Modern Equipment:

In the national bank where I was working as in internee there is no modern equipment such as note counting machine for to reduce the wastage of time and note detector for the currency.

5.3.7 Uneven Work Distribution:

During the workload in National bank the work is not distributed while the other runs away from their responsibility, which server as a demotivation factor for employees performing above average work.

5.3.8 ATM (Automatic Teller Machine):

ATM is another weakness of national bank because there is no facility of ATM in national bank. So NBP focus on this technology to capture more customers.

5.4 Opportunities
5.4.1 Electronic Banking Services:
National bank use electronic bank service and the online banking twenty hour a day. National bank also adopts new technology to compete the other bank. And national bank focuses on the new technology for the better performances. Because the world become global village and in advancement of new technology especially in communication sector.

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5.4.2 Micro Financing:

Because of the need for micro financing in the market, there are lot of opportunities in this regard. Other banks have already initiated, now the time has arrived when the NBP must realize it and take on step to cater an ongoing demand.

5.5 Threats
5.5.1 Emergence of New Competitors:
The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank

has to take initiative in this regard or will find itself far back in competition.

5.5.2 Downsizing:
The bank is currently acting upon the policy of downsizing which threats to the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the overall performance of employees negatively.

5.5.3 Customers Complaints

There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored.

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CHAPTER: 6

RECOMMENDATIONS & SUGGETIONS

6.1

Introduction

The national bank is successfully working and earning organization and moving their activity with particular system and procedure. The major regulatory body which is state bank of Pakistan, and the head office will operate and the whole procedure. Now I am suggest and gives some helpful ideas which can improve the performance of national bank and also increase their profit. The following recommendation which can be follows:

6.2

Professional Training

The staff of national bank is incompetent and also lack of skill which wants training. And need of compulsory training which the work accurately. The entire staff member working in main cities but they cannot perform sound. The banking council of Pakistan should be start basic program for the staff which provides professional training.

6.3

Designation of Authority

After that give authority to the employees of the bank and given duty that they should be ask for their responsibility.

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6.4

Performance Appraisal

The manager of the bank should be harshly checked in the performance of every employees member which works on the organization. And also award on the good performance in the shape of bonus which have good effect on the work of employees so they can be work with the full concentration.

6.5

To Solve the Problem of Space and Furniture

To control this problem and my suggestion individual segment must made within in the organization. Which should be handling only the bank account; salaries and the pension fund which can be retire from the different organization. The management of the organization should purchased the furniture and also arrange these equipment in a such way which provides maximum space and suitable especially for the deposits section so the customer should easily sit.

6.6

Transfer of the Employees

The transfer of the employees is not properly in my opinion the transfer of the staff which also good impact on the organization and the regular change of the staff after every five years. And change to the different banks branches.

6.7

Changes in the Policies

The bank cannot rapid change their policies of the superior management. It the result they hurt the confidence of the customer so the government can make their long term policies.
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6.8

Need of Qualified Staff

Provide qualified staff in order to improve the functions of the bank. Especially for the loan advancing which could better guide the customer to take loan from the bank and also take fresh employees which can better work done and the telephone operator should be take which can guide the customer on the phone. The branch that i have works as an internee no one available to pick the phone.

6.10 The Bank Link with the Head Quarter

In my point of view the major branches of national bank should be the directly link with the head quarter through the internet which can make the decision making management easier and convenient.

6.11 Credit Cards

The starting of credit card is very helpful for the normal customers in the general and particularly for the business people. And which make safer to reduce the misuse of it, the management should also require to.

6.12 Interest on Overdraft

The national bank is also providing interest on the overdraft to its honest customer with a free from interest. Just national bank charged his commission charges with a very small amount of markup on the overdraft which can improve the bank profit.

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6.13 Clean Loans

Clean overdraft is another facility that national bank give to the customer without any security. The small term loan not to extend to anyone, for a moment these loans provides for the blue-eyed people of the management and they become bad debts for the bank.

6.14 Cash Financing

In these types of cash financing the amount of credit which is not utilized by the borrower is remained free of tax. The little amount of interest must be charged from this sum because the bank kept-aside the sum for the borrower and cannot any more advance it anyplace.

6.15 Reducing the Administrative Expenses

The bank should close the branches which are not used and also the employees of the bank should also control their expenses. So we can reduce their administrative expense which gives us positive impact on the future.

6.16 National Bank needs to be Flexible in the credit Policy

National bank is an old organization and its conservative in the advances and loans policy. National has decreased their assets opportunities so it can give the loan to the small business organization and also give to the agriculture sector. National banks should elastic in their policies and give the loan to small business organization low markup rate.

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6.17 Technological Advancement for National Bank

For the better output national bank should computerized their branches. When the branches are computerized they can speed up the dealing between the banker and the customer and also give training to the staff foreign exchange, advances and the deposits. So they can easily the daily record and could be easily entered in it. The technological advancement is not only reduce the time of transaction but it can also increase the accuracy. It can reduce the work load of the bank and also decrease the paper work technological advancement is more important for the bank work.

6.18 Staff Relationship

The good relationship of staff can also important for the increase of better performance of organization and which can leads the organization into the peak point. When a manager is absent the whole work is stop no one can perform his work so the relationship of good with staff they can distribute this work. This is more important for the entered bank and the whole work would not be stop.

6.19 The Distribution Improper Work

When the work is not properly distributed the organization cannot progress fast so the distribution of work can make the organization to the top. During my internship in the national bank main branch Swabi there is no distribution of work operation manager perform the work of remittance and agriculture officer perform the work of cashier. So my point of view the distribution of work is most important for the organization.

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6.21 Inter Departmental shifting of work

During of my internship in national bank main branch Swabi the staff of national of bank some employees work on one seat from many years which can negative impact on the bank. So my point of view the changing of work is most important for the bank when one is absent they can the work of this person who is not on the duty. So every two year change the work of employees so in emergency they can perform the work.

6.22 Foreign currency Account

National bank main branch which Im working as a internee the foreign currency account which operate by Gul Faraz which is more efficient and intelligent they can dealing very will and also tell me that foreign exchange is most important now a days so you can learn this which help in future when working in the bank. So the foreign exchange department in national bank works very good and no suggestion for this.

6.23 Marketing Policy

The branch which Im working as an internee should adopt a variety of marketing strategy and promotion strategy they can promote the bank and its product. They can
introduced variety of prizing schemes such as United Bank introduce Omini, Habib bank limited introduce insurance so national bank should give more advertisement on the television , newspaper that people know his products . The advertisement is more important for the bank so it can think about this which can promote the organization.

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6.24 There is no Complaints desk for the Customer

In national bank main branch which is no complaints desk for the customer who can receive the complaints and also provide information to the customers .every person shy to go the manager for the complaint. So it can install complaint box where the customer can get information and completely guided.

6.26 Organizational Commitment

So my suggestion that employees working on the daily which should gives us more benefits to the organization and also increase their salaries according to their performance. So every employees of the bank work hard because of their increasing of salaries on the bases of efficiency.

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CHAPTER 7

ACTIVITIES BRANCH

PERFORM

IN

NBP

MAIN

Personal Experience:
It is essential requirement for completion for MBA degree in Hazara University. And the duration of internship is seven weeks. My internship place is national bank main branch Swabi code (0406). The duration of seven weeks I have worked on the different departments the staff of national bank main branch Swabi helps on the every department to learn more knowledge about the bank and also the function of bank. After joining national bank the manager introduction of myself to other staff member of the bank. Every staff member of the bank can guide me very will and also tells about the major function, objects, and future planning of the bank. In the bank a lot of work on the account opening, voucher, making draft for the customer. All of the staff member proper time for seeking the bank functions.

7.1 Issuing Of Cheque Book:

Requirement for issuing cheque book is given below a) The account holder must sign the requisition slip b) Entry should be made in the cheque book issuing book c) Four rupees Per cheque should be recovered from a/c holder. d) If the requisition slip did not available then the bank recovered extra charges from the a/c holder
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e) The bank available 25, 50, and 100 pages cheque books

7.2 Account Opening:

The account opening is the relationship of banker and customer. Before the opening of account the Bankers check the customer, National identity card, see the occupation, and

also check the business certificate that what type business the customer doing. Introduction is necessary because for the following reasons. 1. keep away from frauds 2. Protect against inadvertent over draft. 3. Negligence. 4. Inquiry about the customer.

The certain formalities are necessary for the account opening. I. II. III. IV. V. Official application. Introduction of customer. Specimen signature card for the customer. Initial deposited of customer. Operating the account of customer. a. Pay-in slip Book. b. Pass Book. c. Issuing of cheque Book.

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A. Qualification of customer: Before the opening of account opening officer check the customer qualification. a) They must be of the age of majority. b) They must be of sound mind c) Law must not disqualify him. d) Not expressly declared void

7.3 Remittances Department:

In the remittance department the money of people transfers from place to another place in safe way. In the national bank main branch Swabi the remittance done by the Syed Qurban Ali shah. The main function of this department is I. II. III. IV. V. Issues of demand draft. Issues of Telegraphic transfer. Issued the call deposit. They issues payment order. Pension payment of retired employees.

7.3.1 Demand Draft:

Demand draft is a tool that we use for the completing of transfer of money. So the manager is tell me that how we make the DD and what are the procedure of making demand draft. The following information that we collects from the applicant. a) First we asks the name from the receiver

53

b) How much transferred c) The place where the demand draft send d) Also ask to the applicant that which mode you will give money to the bank in the cash form or we debt from your account

7.3.2 Payment order:

Qaisar shah the manager of national bank tell about the payment order that we make payment order and the following method that we use in the making of payment order. Procedure of payment order Two applications forms called credit vouchers for payment and for bank fee are made. The application form is attach with the cheque, debit authority or make payment in cash form. After that the payment order is made. After that we give the payment order to the customer. The Pay order again come to National bank of Pakistan for clearing

7.3.3 Mail transfer:

As internee i also know the method of mail transfer and following procedure that I have followed in the making of mail transfer. First we fill the application form. Then make the payment. Then we prepare the M.T advice.
54

Then the fanfold is made on F15. The M.T advice and fanfold (red copy) is sent to the responding branch. The M.T code is 22.

7.3.4 Telegraphic Transfer:

Then i also learn the process of telegraphic transfer. TT is a cable message which we can make the transfer of money from one bank to another bank
The following Procedure of Telegraphic transfer

First we fill the request form

After that the payment is made.

When i was making the message voucher we write the phone on the top of it. The telegram transfer confirmation is made we on the (F-15). Message is sent directly by fax & the confirmation of TT is sent through telegram. Then we fill the F15 blue and the original red is sent to the responding branch. The code of T.T is 21.

7.3.5 Deposit Section

During of my internship i will visit to the deposit section which is very important department where the customer deposits their money and withdrawal of their money from the bank. The bank uses this money and give loan on a high interest rate to earn the profit. The work that i have done the main is that. First we maintain the record of a saving and then call deposits which I will do every day.
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Then the record of signature of a account holders Then the customer Record we can balances inquiry of cheques that are issued The order cheques which is Withdrawal Then clear the Local deposits Then I will Prepare the accounts holder activity report every day

7.3.8 Pension Section

In the pension section the following activities are performed I. II. III. Preservation of the pension register After that scrolling of pension paid Preservation of inward mail register

Loan Advancing: Then i seek the method of loan advancing that how national bank gives the loan of advancing to agriculture sector and to the former to buy tractor, seeds. Some people give their the gold to take loan from national bank the duration of this loan is one year and the national take the interest against the loan is 19.5.

Advance Salary: During of my internship i also learn the advance salary loan that national bank give to the government employees. That how national bank gives advance salary and what is the interest rate charge by the national bank on the amount.
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Bibliography
i ASRAR H SIDDIQUE, (1983) Practice and law of banking in Pakistan; third addition, Royal book Co. Karachi. ii AVASHTI, & SHAIRAN, (1983) public Administration; sixth addition, New York: MCGRAW Hill Book Company. iii K. K Dewitt, (1984), modern economic theory, 4rth addition south western publication company, Dallas. iv CHHABRA SHERMAN, (1983) Human resource managing , 7th addition South Western publication company v CHHABRA T.N (1985), Principles & practice of management; Delhi, D.R printing services. vi Daryl R. Conner, (1986), Managing organizational change dangers and opportunities report, O.D resources, Inc, Atlanta, GA. vii King David, (1987), Money and Banking; London; Edward Arnold press. viii Lusk Edward J. (1979) Financial and management control, A Health care perspective; USA, Aspen System Corporation. ix Edwin, b. FLIPPO, (1976), Principles of personnel management; McGraw Hill Co. Tokyo. x Grant smith, Personnel administration and industrial relations, third addition Lung King tong company limited Hong Kong, 1984, page 349. xi FRED LUTHENS, (1985) Organizational behavior; editions N.R McGraw Hill Company. xii Greenly Gordon. (1989), Strategic management; UK McGraw Hill Book Company.
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