Complete Report of NBP by Rameez

NBP
Main Branch, Vehari
Internship Report
Submitted To:
MR.MUBASHIR MALIK
Submitted By:
RAMEEZ SHAHID
Session :( 2008 to 2010)
Department of Business
Administration
UNIVERSITY OF LAHORE
Internship Report NBP
LAHORE
UNIVERSITY OF LAHORE 2
This Piece of work is dedicated to my revered parents,

Who groomed my personality and provided
Me all the facilities to complete my educational career.
Their devotion, sincerity and love generated
Me a positive approach towards humanity.
I owe this achievement of my life to my parents
Whose prayers always with me.
I pray for their long life and prosperity.
Acknowledgement
A
ll praises are for Almighty ALLAH who guides us through
the darkness of unknown. All respects for Holy Prophet
(PBUH) who enables us to recognize our creator and
whose spiritual teachings guide us in every matter of life.
I am also highly thankful to my honorable teachers for

theirs guidance. Special thanks to “MR. Zafar” Manager
Operations of National Bank of Pakistan main Branch
Vehari, and all other employees of the branch for their
cooperation.
I cannot forget the kindness and cooperation of Mr.

Khalid and Mr. Ameer Hamza who are very honest to
their work and organization. They provide me a lot of
information and practical knowledge, many regards to
them. I am also thank full to
Mr. Naseer Bhatti for his cooperation.
PREFACE
It is the requirement of the MBA program of University of
Lahore that all students of MBA have to spend Six Week in
any organization to get practical exposure and to get
familiarized with the ways to live in the organizational
environment which is dramatically different from the
educational environment. That six week period called
“Internship period”, if spent properly and sincerely,
enables the students to be more confident, more
knowledgeable, more responsible and more committed to
its work in the practical field. I have also been assigned to
do internship of six weeks period in National Bank of
Pakistan Main Branch Vehari.It has enabled me to
understand the practical scenario and sharpen our
decision making power and utilizing the resources in an
effective manner, so that our resources generate
maximum profit. In preparing this report, I have put al of
my best efforts and tried my level best to give maximum
knowledge. Despite of my all the coherent efforts, I do
believe that there will always be a room for improvement
in the efforts of learner like me.
RAMEEZ
SHAHID
MBA FINANCE
rameezshahid85@g
mail.com
Table of Content
Inde Explanation Page
x No.
1 Title Page 1
2 Bissmillah 2
3 Dedication 3
4 Acknowledgement 4
5 Preface 5
6 Table of Content 6-8
7 Executive Summary 9-11
8 Introduction to Banking 12
9 What is National Bank of Pakistan 12
10 What is Commercial Bank 13
11 Banker and Customer Relationship 13-15
12 HISTORY 16
13 History of Banking 16-18
14 Efforts toward Islamic Banking 19
15 Vision & Mission Statement 20
16 NBP in Vehari 21
17 Branch Hierarchy 22
18 Senior Management 23-24
19 Management and Organizational 25-27
Structure
20 Members of Board of Director 28-30
21 DEPARTMENTS OF NBP 30
22 Cash Department 31
23 Deposit Department 32-35
24 Clearing Department 35-36
25 Advance & Credit Department 37
26 Account Opening Department 37-39
27 Securities 40
28 Types of Advances 41-43
29 PRDUCTS OF NBP 44
30 NBP Premium Aamdani 45-46
31 NBP Premium Saver 47

32 NBP Karoobar 48-50
33 NBP Saibaan 51-52
34 NBP Advance Salary 53-54
35 NBP Cash Card 55-57
36 NBP Investor Advantage 58-59
37 NBP Cash n Gold 60
38 NBP Kisan Taqat 61
39 NBP Kisan Dost 62-63
40 NBP Pak-Remit 64-65
41 NBP Protection Shield 65-66
42 SERVICES OF NBP 67
43 International Banking 67
44 NBP Pak Rupee Traveller’s Cheque 68
45 Letter of Credit & Commercial Finance 68
46 Foreign Remittance 68-69
47 Swift System 69
48 Short Term Investment 70
49 N.I.D.A & Equity Investment 70
50 Trade Finance and Other Business Loan 71-72
51 Utility Bills & Foreign Currency Account 73
52 Corporate Finance 73-74
53 LEARNING AS AN INTERNEE 75
54 General Banking 75
55 Cheque at Counter 75-76
56 Cheque Payment Procedure & Issuance of 76

Demand Draft & Bills Collection
Department
57 Bills Remittance Department & Deposit 77
Department
58 Pension Payment Procedure 77-78
59 Outward Bills For Collection 78
60 NBP Awards & Achievements 79-82
61 FINANCIAL ANANLYSIS 83
62 Balance Sheet 84-85
63 Profit & Loss Account 86
64 What is Financial Ratio 87
65 RATIO ANALYSIS 88-97
66 PEST ANALYSIS 98
67 SWOT ANALYSIS 99-102
68 RECOMMENDATION & CONCLUSION 103
69 Internship Letter 108
70 References 109
Executive Summary
National bank of Pakistan since its formation in 1949 is working as a
commercial bank and also providing expert services to the
government and State Bank of Pakistan. The bank was nationalized
with other main banks in early seventies and since then being a
government owned organization it has not been able to gibe an
incredible performance. Further, the privatization of other banks has
also created an inflexible environment in the banking industry.
This report highlights the operations and functions of National Bank

of Pakistan. NBP act as financial agent to its customers in return it
gets reward for its services in the shape of profit. Being a
Government owned institution it plays an important role in
development of society as well as in development and growth of the
economy. National Bank of Pakistan is one of the leading banks in
Pakistan. According to international standards of banking system it
is one of the best bank in South Asian region. This report explains
how different functions of NBP work and what are their services.
The main purpose of the internship is to gather relevant information

to compile internship report on National Bank of Pakistan Main
Branch Vehari. Another purpose of this Internship program is to
enable the students to use the management techniques acquired
during their courses, and find out the possible solution of
management problems faced by the organization. The report is
based on my six week internship program in National Bank of
Pakistan. The methodology reported for collection of data is primary
as well as secondary data.
The biggest source of information is my personal experience,

observation while working with staff and having discussion with
them. The annual report 2005, 2006,2007,2008,2009 also helped

me in this regard. It has its head office in Karachi. It’s over 1265
branches in Pakistan and 22 abroad. It is a part of State Bank of
Pakistan and it is its major strength. It is providing different facilities
to its customers. Inside the bank, in branch banking it has Clearing
and Collection Department, Government Receipts processing
Department, Account Opening Department, Remittance
Department, Customer Service Department, Cash Department,
Deposit Department, Advance and Credit Department. There are the
most common departments exist almost each branch. It is offering
different deposit choices, Advances, Credit and Securities etc. for its
customers.
The finance is its major strength. The other strength of this it is

acting as a agent of State Bank of Pakistan, providing Agency
Arrangements for different government organizations include
WAPDA and PIA, profitability and a vide coverage throughout
Pakistan through its corporate branches. And also it has
comprehensive range of products it is offering in market. There is
large opportunity for this bank to give coverage to consumer
banking because it has not yet covered this area comprehensively.
Opportunities in Advisory services, investment banking also exist for
National Bank of Pakistan.
National Bank of Pakistan maintains its position as Pakistan’s

premier bank determined to set higher standards of achievements.
It is major business partner for the Government of Pakistan with
special emphasis on fostering Pakistan’s economic growth through
aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches
locally, internationally and representative offices. The National Bank
of Pakistan offers a wide range of services to its customers &
recognizes the importance of efficient business delivery & providing
timely solutions.Thier competitor are United Bank, MCB Bank, Askari

Bank, Faysal Bank, Punjab Bank, Allied Bank etc. The essence of
Business philosophy is cater to the banking requirements of small &
medium sized entrepreneurs, providing them qualitative &
competitive services with emphasis on encouraging exports. Nearly
forty percent of our credit portfolio is related to export financing and
credit decisions are taken with in 48 hours. Its product are pay
order, mail transfer, Foreign Remittance, Foreign currency Accounts,
Short term Investment, NIDA *(National Income Daily Accounts),
Equity Investment, Commercial Finance etc.
The management is considering the fact and doing planning for the
sake of getting it through these unjustified pressures but still not
been able to implement them in good manner. This is further
disturbed by the demotivated and unqualified staff that is working
with the bank.
To be able to regain the level of performance and profitability the
bank has to take serious measures to escape from the political
influence, build a competent and qualified pool of employees, make
all possible efforts to introduce the modern technology that is
serving the banks in the world and to enhance the confidence of the
customer, are necessary steps be taken by the bank. I personally
very much gain from this internship.
Introduction To Banking
There are three main topics that we are discussing below.
• What is National Bank of Pakistan?

• What is Commercial Bank?
• Banker and Customer Relationship
What is National Bank of

Pakistan?
National Bank of Pakistan (NBP) was established under the National
Bank of Pakistan Ordinance 1949. The primary objective of NBP
was to purchase jute from the growers in the former East Pakistan
and also to perform the commercial banking functions in the
country.
National Bank of Pakistan is now the biggest financial institution
with assets totaling over Rs.944, 233 million with 1265
Domestic and 22 foreign branches, 9Reginol/Representative
offices. The bank is the higher financer in agriculture and
commodity operation sector.
AGRICULTURE BRANCHES
Agriculture branches of NBP are 839. In which SINDH has 137
branches, PUNJAB has 472 branches, KHYBER PAKHTUNKHWA has
129 branches BALOCHISTAN has 17 branches and MUZAFRABAD
and KASHMIR have 84 branches.
National Bank of Pakistan maintains its position as Pakistan's

premier bank determined to set higher standards of achievements.
It is the major business partner for the Government of Pakistan with
special emphasis on fostering Pakistan's economic growth through
aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches
locally, internationally and representative offices
WHAT IS A COMMERCIAL BANK?

A bank is a financial institution which deals with money and credit. It
accepts deposits from individuals, firms, and companies at a lower
rate of interest and gives at a higher rate of interest to those who
apply for loan. The difference between the terms at which it borrows
and those at which it lends from the source of its profit. A bank,
thus, is a profit earning institute. Any bank that performs this
functioning is called the commercial bank.
According to Crowther
“A bank is a firm which collects money from those who have it
spare. It lends money to those who require it.”
According to Banking Ordinance

1962
According to Section 5(b) of Banking Ordinance 1962, meaning
of banking is as under “Banking company is a company which
transacts the business of banking in Pakistan, mainly of accepting,
for the purpose of lending and investments of deposits of money
from the public, repayable on demand or otherwise and withdraw
able by cheque, draft, order, or otherwise”
BANKER AND CUSTOMER

RELATIONSHIP
The relationship between the banker and the customer are of
utmost importance. Both serve the society and the economy to
expand. Before we discuss the relationships between the banker
and the customer, it seems necessary that the two terms banker
and customer are made clear.
Banker
A banker is a dealer in capital or more properly a dealer in money.
He is an intermediate party between the lender and the borrower
and charges a definite amount of money which is the profit of his.
Customer
A customer is a person who maintains a regular account with the
bank, without taking into consideration the duration and frequency
of operation of his account. The relations between the banker and
the customer are generally studied as under:
Debtor and Creditor

The general relationship between banker and customer is primarily
that of a debtor and creditor. When customer deposits money with a
bank, the bank then is the debtor and the customer is the creditor.
The customer expects from the bank that (I) his money will be kept
safe by the bank, (II) it will be returned on demand within business
hours. The position is reverse if the customer is advanced loan i.e.
the banker becomes the creditor and the customer is the debtor.
Principal and Agent

The special relationship between the customer and the banker is
that of principal and agent. The customer (principal) deposits
cheques, drafts, dividends etc. are for collection with the bank. He
also gives written instruments to the bank to purchase securities,
pay insurance premium, installments of loans etc on his behalf.
When the bank performs such agency services, he becomes an
agent of his customer.
Bailer and Bailment Relationship

A bailment is the delivery of goods in trust. A banker may accept the
valuables of his customers such as jewellery, documents, securities
etc. for safe custody. In such a case the customer is the bailer and
the bank is the bailee. It charges a very small amount of money as
service charges for safe custody of valuables.
Pledger and Pledgee

When a customer pledges goods and documents with the bank as
security for an advance, he then becomes the pledger and the bank
becomes the pledgee. The pledged goods are to be returned intact
to the pledger after the debt is repaid by him.
Mortgager and Mortgagee

Mortgage is the transfer of an interest in specific immoveable
property for the purpose of securing the payment of money
advanced or to be advanced by way of loan. When a customer
pledges specific immoveable property with the bank as security for
an advance, the customer becomes the mortgager and the bank
becomes the mortgagee.
Bank as a Trustee
The bank acts as a trustee for his customers in those cases where
he accepts other valuables for safe custody. In such case, the
customer continues to be the owner of the valuables deposited with
the bank.
Executor, Attorney, Guarantor

The bank also acts as executor, attorney, and generator for his
customers.
History
Here we discuss three topics which are
• History of Banking in Pakistan
• Efforts towards Islamic Banking in Pakistan
HISTORY OF BANKING IN PAKISTAN

The partition plan was announced on June 3, 1947 and August 15,
1949 was fixed as the date on which independence was to take
effect. It was decided that the Reserve bank of India should continue
to function in the dominion of Pakistan until September 30, 1948
due to administrative and technical difficulties involved in
immediately establishing and operating a Central Bank.
At the time of partition, total number of banks in Pakistan were 38

out of these the commercial banks in Pakistan were 2, which were
Habib Bank Limited and Australia Bank of India. The total deposits in
Pakistani banks stood at Rs.880 million whereas the advances were

Rs.198 million. The Governor General of Pakistan, Muhammad Ali
Jinnah issued the order for the establishment of State Bank of
Pakistan on 1st of July 1948.
In 1949, National Bank of Pakistan was established. It started with

six offices in former East Pakistan. There were 14 Pakistani
scheduled commercial banks operating in the country on December
1973, the name of these were:
1) National Bank of Pakistan

2) Habib Bank Limited
3) Habib Bank (Overseas) Limited
4) United Bank Limited
5) Muslim Commercial Bank Limited
6) Commerce Bank Limited
7) Australia Bank Limited
8) Standard Bank Limited
9) Bank of Bahawalpur Limited
10) Premier Bank Limited
11) Pak Bank Limited
12) Lahore Commercial Bank Limited
13) Sarhad Bank Limited
14) Punjab Provincial Co-operative Bank Limited
The Pakistan Banking Council prepared banks amalgamation

schemes in 1974 for amalgamation of smaller banks with the five
bigger banks of the country. These five banks are as under:
1. National Bank of Pakistan

2. Habib Bank Limited
3. United Bank Limited
4. Muslim Commercial Bank Limited

5. Allied Bank Limited
So, through the Nationalization of Bank Act 1974, the State Bank of
Pakistan, all the commercial banks incorporated in Pakistan and
carrying on business in or outside the country were brought under
the government ownership with effect from Jan. 1, 1974. The
ownership, management, and control of all banks in Pakistan stood
transferred to and vested in the Federal Government. The Finance
Minister announced plans to start Islamic Banking system in
Pakistan in the budget speech on June 26, 1980. The bank believes
that Islamic Banking offers good potential for growth. The bank has
opened eight (8) branches since 2007, of which three were opened
in 2009. During the last two years its asset size has grown
significantly with offering of market-driven products like Murabaha
and Ijarah. Islamic Banking is making its mark by catering to the
Bank’s already existing large customer-base as well as exploring
new and untapped markets including SME, Commercial and
Corporate. Islamic Banking is developing policies for new products
like Diminishing Musharikah, Salam and Istisna to meet customer’s
needs. The overall operations showed loss as a result of higher start
up cost of three new branches opened this year.
Efforts Toward Islamic Baking In Pakistan

Pakistan was created in the name of Islam on august 14, 1947. But
since then, the interest is paying the cardinal role in resource
allocation of the economy.
The banking system in Pakistan based on interest divergences with
Islamic ideology and is forbidden by Almighty Allah and His
Prophet Muhammad (PBUH).Any government till now in the
country except President Zia-ul-Haq did not dare to change this
system based on interest in banking in Pakistan. The only step taken
under this direction is starting of PLS Deposits from January 1,
1982. Only PLS saving account and PLS term deposits shall be
accepted on profit and loss sharing basis. The strategic endeavors
resulted in expansion in NBP Islamic banking branch network
covering all major cities of the country. To evaluate the commercial
viability, future profitability and growth of Islamic banking, the
committee guided Islamic Banking Group to prepare business plan
for the year-2010 and henceforth strategic plan 2011-2013. The
bank believes that Islamic Banking offers good potential for growth.
The bank has opened eight (8) branches since 2007, of which three
were opened in 2009. During the last two years its asset size has
grown significantly with offering of market-driven products like
Murabaha and Ijarah. Islamic Banking is making its mark by catering
to the Bank’s already existing large customer-base as well as
exploring new and untapped markets including SME, Commercial
and Corporate. Islamic Banking is developing policies for new

products like Diminishing Musharikah, Salam and Istisna to meet
customer’s needs. The overall operations showed loss as a result of
higher start up cost of three new branches opened this year.
VISION
“To be recognized as a leader and a brand synonymous with trust,
highest standards of services quality, international best practices
and social responsibility”
MISSION
NBP WILL aspire to the values that make NBP truly the National’s
Bank, by
• Institutionalization a merit and performance culture
• Creating a distinctive brand identify by providing the highest
standards of services
• Adopting the best international management practices
• Maximizing stakeholders value
• Discharging our responsibility as a good corporate citizen of
Pakistan and in countries where we operate.
National Bank In Vehari
Vehari is the city in the vehari District, Punjab, Pakistan. It is located

about 100 kilometers from the regional metropolis of Multan and
about 25 kilometers from the southernmost of the five rivers Sutlej
in Punjab Vehari is to the north of the Sutlej River. A headwork’s of
canals is located on this river near Luddan on the Luddan Vehari
canal providing irrigation water to both banks of the river, which
includes the upper fringes of the Cholistan Desert.
The summer in Vehari is very hot, but the weather becomes much
more pleasant between October and February. Light rainfall leaves
the land generally arid and dusty, but the country's agricultural
products include mangoes in the summer and guava and other
citrus fruits in the winter. Vehari is considered the capital of cotton
growing in this part of Pakistan, with dozens of cotton processing
factories and cottonseed oil manufacturing plants, and sugarcane
farming and processing is also common.
Competition in banking sector at Vehari is increasing day by day.

One reason may be the special attention of the government towards
the development of the region. Second one, we can say that SME
(Small and Medium Enterprise) sector is demanding the special
attraction of banking sector. National Bank is one of them who have
paid special attention in SME sector.
BRANCH HIRARCEY
MANAGER
Mr. Naseer Bhatti
OPERATION MANAGER
Mr.Chudary Zafar
CLEARING DEPOSIT CREDIT IT INCHARGE

DEPARTMENT DEPARTMENT DEPARTMENT
Mr.Khuram Zafar
Mr. Khalid Mr. Gafar khan Mr.Nasrullah
GOVERNMENT
INCHARGE
Mr.Ameer
Hamza
SENIOR MANAGEMENT OF NBP
Qamar Hussain Chief Operating Officer , Head of
Credit & Risk Management Group
Dr. Asif A. Brohi SEVP & Group Chief, Operations
Group
Shahid Anwar Khan SEVP & Group Chief, Overseas
Banking Group / Corporate &
Investment Banking Group
Ziaullah Khan SEVP & Group Chief Agriculture
Finance Group
Dr. Mirza Abrar Baig SEVP & Group Chief, Human
Resources Management &
Administration Group
Amer Siddiqui SEVP & Group Chief, Commercial
& Retail Banking Group
Tariq Jamali SEVP & Group Chief, Compliance
Group
Nadeem A. Ilyas SEVP Group Chief, Assets
Recovery Group / Corporate &
Investment Banking Group
Muhammad Nusrat Vohra SEVP & Group Chief, Treasury
Management Group
Khalid Bin Shaheen SEVP & Group Chief, Global
Home Remittance Management
Group
Imam Bakhsh Baloch SEVP & Group Chief, Audit &
Inspection Group
N. B. Soomro SEVP , Special Assignments,
President's Secretariat
Agha Fidaullah EVP/Group Chief, Special Assets
Management Group
Shafique Ahmed Khan EVP & Divisional Head, Islamic
Banking Division
Ekhlaq Ahmed EVP & Secretary Board of
Directors
Fazal-ur-Rehman EVP & Head P&IR Division,
HRM&A Group
Muhammad Hanif EVP & Head HR & OD Division,
HRM&A Group
Muhammad Iqbal Qasim EVP & Head SC & CSR Division,
HRM&A Group
EVP & Chief Information
Mohammad Kumail Officer /Head Of Information
Dehradunwala Technology Division

Aamir Sattar
UNIVERSITY OF LAHORE SVP & Divisional Head, Financial
24
Control Division
Faisal Mahmood VP & Divisional Head (A) , PMO &
MANAGEMENT AND
ORGANIZATIONAL STRUCTURE
The ownership, management, and control of all the commercial

banks were taken over by the Government of Pakistan on January
1st, 1974.
A banking council was formed under the Nationalization Act
1974. The banking council was set up for making policy
recommendations to the Federal Government, formulating policy
guidelines for the banks and their reorganization.
The management and organizational structure of the nationalized
banks have uniformity. This management and organizational
structure is briefly described as under:
• Board of Directors
• Executive Board
• Chief Executive
• Divisional Chiefs
• Provisional Chiefs
• Circle Executive
• Zonal Heads
• Branch Managers
1) Board of Directors
In the management of the banks, the board of directors is at the top
of the controlling body. Since there are no private share holders
now, so there is no general meeting of the share holders and no
elected directors. The BOD consists of a nominated President, a
Secretary, and 9 other members. The board has limited
administrative powers because after the Nationalization Act 1974,
most of powers are transferred to the Banking Council and
Executive Board.
2) Executive Board
The general direction and supervision of the affairs of commercial
banks lies in their respective Executive Boards. An EB also consists
of a President, a Secretary, and 9 other members, appointed
by the Federal Government.
3) Chief Executive
The President of the Executive Board is the Chief Executive. He is
the administrative head of a bank and presides over the meetings of
Executive Board.
4) Divisional Chiefs
In order to improve the management and operation of a bank, it has
been split up into a numbers of divisions. Each division of a bank is
placed under the supervision and control of Divisional Chief (also
called the Senior Executive Vice President or Executive Vice
President)
5) Provisional Chiefs
In order to improve the performance of banking system, each bank
has a Provisional Chief. PC has the powers for sanctioning finance
and other credit facilities. Each headquarter is situated in each
province e.g. in Lahore, Peshawar, Quetta, and Karachi.
6) Circle Executive
Each commercial bank has a number of circles placed directly under
the control and supervision of Chief Executive.
7) Zonal Heads
Each circle is divided into a number of zones. These zones are
administered by Zonal Heads who hold the posts of Vice President
or Assistant Vice President.
8) Branch Managers
Each zone of commercial bank is divided into several branches. The
control and supervision of each branch is mostly entrusted to
Assistant Vice President or Officer G-II.
Members of Board of Director
Syed Ali Raza

Chairman & president
Syed Ali Raza is the Chairman and President of National Bank of

Pakistan (NBP), the largest commercial bank of the country
.
Mr. Tariq Kirmani

Director
Mr. Kirmani has served on the Boards of various companies and now
is serving as a Director on the Board of National Bank of Pakistan.
Mrs. Haniya Shahid Naseem

Director
Mrs. Haniya Shahid Naseem is an MBA with more than fifteen years
experience of working in the education, social, industrial textile and
agriculture sectors of Pakistan. Now is serving as a Director on the
Board of National Bank of Pakistan.
Ms. Nazrat Bashir

Director
Ms. Nazrat Bashir belongs to District Management Group of Civil

Services of Pakistan. Besides NBP, she is on the Board of Directors
of National Investment Trust (NIT) and Zarai Taraqiati Bank Limited.
Mr. Ibrar A. Mumtaz

Director
Mr.Ibrar A Mumtaz is also the member of Board of Director. He serve

many companies and now is serving as a Director on the Board of
National Bank of Pakistan.
Mr. Sikandar Hayat Jamali

Director
Mr. Sikandar Hayat Jamali is also the member of Board of Director.

He serve many companies and now is serving as a Director on the
Board of National Bank of Pakistan.
Mr. Ekhlaq Ahmed

Secretary Board of Directors
Mr. Ekhlaq Ahmed, EVP is the Company Secretary of the Bank and
also the Secretary of Credit & Operations Committees.
DEPARTMENTS OF NBP
For proper functioning of all these activities, the bank has divided its
operations into different departments that would be discussed next.
These departments are as under:
(1) Cash Department
(2) Deposit Department
(3) Clearing Department
(4) Advances and Credit Department
(5) Account Opening Department
CASH DEPARTMENT
The following books are maintained in the cash department:-
1) Receiving Cashier Books
2) Token Book
3) Paying Cashier Book
4) Scroll Books
5) Cash Balance Book
When cash is received in counter, it is entered in the Scroll Book and

Receiving Cashier Book. At the close of the day, these are balanced
with each other. When the cheque or any negotiable instrument is
presented at counter for payment, it is entered in the Token Book
and Token is issued to the customer. The Token and the cashier
make entry in the Payment Book and the payment is made to
payee. At the close of the day, the Token Book and paying Cashier
Book is balanced. The consolidated figure of receipt and payment of
cash is entered in the Balance Book and drawn closing balance of
cash.
OPENING BALANCE + RECEIPT – PAYMENT = CLOSING

BALANCE
This is very important department because cash is the most liquid

asset and mostly frauds are made in this department, therefore,
extra care sis taken in this department and no body is allowed to
enter or leave the area freely. Mostly, cash area is grilled and its
door is under the supervision of head of that department. Officer
checks the books maintained in this department.
DEPOSIT DEPARTMENT
IMPORTANCE
Bank deals in money and they are merely mobilizing funds within
the economy. They borrow from one person and lend to another, the
difference between the rates borrowed and lend from their spread
or gross profit. Therefore, we can rightly state that deposits are the
blood of the banks which cause the body of an institution to get to
work. These deposits are liability of the bank so from the viewpoint
of bank we can refer to them as liabilities
TYPES OF DEPOSITS
Deposits can be segregated on two bases, one is the duration in
which these funds are expected to be with the bank, and second is
the cost of getting these funds. So we can divide deposits into two
classes according to duration:
(1)Time Deposits
(2)Demand Deposits
And on the basis of the cost of acquire these funds, a deposit can be
classified as any one of the following four:
a) High Cost
b) Medium Cost
c) Low Cost
d) No Cost
Bank has different kind of deposit schemes in order to induce

deposits. These schemes are a mixture of the above mentioned two
types of deposits with and addition of different services and
requirements, mode of transactions, basis for calculation of profit,
deduction, additional benefits, and eligibility for different groups. In
the similar fashion, national Bank of Pakistan has large variety of
deposit schemes and some of these are as follows:
1) Current Account
In this type of accounts, the client is allowed to deposit or withdraw
money as and when he likes, but there is requirement of
maintaining the minimum balance of Rs.5000/- other wise Rs.50/-
will be deducted every month. Usually the businessmen open this
type of account and the bank pays no profit on it. These types of
deposits are also exempt from compulsory deduction of Zakat.
2) PLS Saving Account

This type of account is for those persons who want to make small
savings. This type of account is opened with a minimum deposit if
Rs.200/- If the balance in the account falls below the minimum
requirement then a flat charge of Rs.150/- is made in the account
once in a half year. Zakat and other withholding taxes are deducted
as per rules of the government.
3) Fixed Deposits
In this type of account a certain amount is deposited for a certain
period such as six months, one year, two year or longer. A fixed
deposit receipt is issued in the name of the depositor. The receipt is
signed by the officer in charge and the bank manager. A notice is
given to the depositor on a prescribed from two weeks before the
Fixed Deposit Receipt (FDR) falls due, requesting the depositor to
withdraw his money or to renew his deposits. The interest is allowed
on fixed deposit varies with the period for which the deposit is
made.
4) Short Notice Term Deposit

This kind of deposit is for a short period as the name indicates. The
depositor may withdraw his deposit at any time by giving seven
days notice to the banker. This type of deposit facilitates the trader
to withdraw his amount with interest of the deposited period.
5) Call Deposit
Call Deposits are the sorts of deposits, which are deposited with the
banker against any tender. This is with out interest deposit, this may
be with interest provided with the depositor has agreed to keep this
amount with the banker for some fixed period.
6) Cumulative Deposit Certificate

This is just like of fixed deposit. In this kind of deposit, the rate of
interest is higher as compared to other kind of deposits, which are
mentioned previously. The rate of interest rises gradually as the
period extends. Its period ranges from three month to twenty years.
7) Monthly Income Scheme

National Bank of Pakistan has also introduced Monthly Income
Scheme for the benefits of its customers. An individual or institution,
company, corporation etc. can take the advantage of this scheme.
LEDGERS OF DEPOSIT DEPARTMENT

The following types of ledgers are concerned with deposit
department:
1) Saving Ledgers
2) Current Ledgers
3) Profit and Loss Sharing Ledgers
4) Fixed Deposit Register
5) Cumulative Deposit Certificate Register
6) Cash Book
7) Daily Profit and Loss Summary Book
8) Voucher Register
CLEARING DEPARTMENT
How National Bank Clear the Cheques
The department in charge Mr. Khalid checks the cheques which

came from the different banks. Clearing register Format is like that
Check Drawer’s UBL PUNJAB RSB

Number Name
02127900532 Masood 3900/=
401 Joiya
02127900532 Shahid 40000/=
402 Joiya
02127900532 Rameez 45000/=
403 Joiya
After record the amount of cheques in the “Clearing Ledger”

“AVP”of National Bank prepare “Fan code” in Fan Code he record
the entire Vouchers amount which is mention on that voucher. After
making fan code all the cheques stapled and their voucher also
stapled separately. Then make sticks and stapled that sticks with
every bank cheques. Then he totals the amount of cheques which is
record in clearing Ledger. And also total the amount of vouchers
and also total the amount of sticks. These three totals must be
equals.
TYPES OF CHEQUES COLLECTED
1) Transfer Cheque
Transfer cheques are those cheques which are collected and paid by
two different branches of the same bank situated in the same city.
2) Clearing Cheque
Clearing Cheques are those cheques which are drawn on the
branches of some other bank of the same city or of the same area
which covers a particular clearing house.
3) Collection Cheque
Collection Cheques are those cheques which are drawn on the
branches of either the same bank or of another bank, but branches
are not in the same city or they are not the members of clearing
house.
ADVANCE AND CREDIT DEPARTMENT
The function of Advances and Credit Department is to lend money in

the form of clean advances, against the promissory note, as well as
secured advances against tangible and marketable securities. The
bankers prefer such securities, which do not run the risk of general
depreciation due to market fluctuations.
ACCOUNT OPENING DEPARTMENT
This is the department who deal the new clients of the bank.
Opening the account is the main duty of this department.
Procedure of Opening New Account

According to my practice in bank, when a customer wants to open
an account, the AVP Mr.Khlaid gives him an application form. All
information, which is necessary to be known by the bank, are
requirements of the application form. Form also requires the
essential documents to be attached by the customer.
Required Documents
Basically following information is required to open an account

• Title of Account
• Full Name of Applicant
• Occupation
• Address
• Telephone No.
• Currency of account
• Nature of Business
• Introducer’s Name, Address & Signatures
• Special instruction regarding the account
• Initial Amount of the Deposit
• Opening Account Appendix
• Signature of the applicant
• Reference’s Signature and name
Some important information regarding introducer e.g. the name and

account number of the introducer is written on the form. Then in
order to find out whether he is a true introducer or not, a letter is
sent to him thanking him for this introduction so that anything
wrong may come into notice.
There are different requirements for different types of accounts and
accountholders.
Opening Account Appendix

In this document the signature of Account Holder and the signature
of Account opening officer exist and also the number of Account
also mention like 189-1
And the amount which is deposit into Account it depend on the
nature of Account that either it is current Account or fixed deposit
account.
Now I want to tell all the procedure of Account
Opening by a diagram
Procedure to Open an Account
GET THE FORM FROM OPENING

DEPARTMENT
FILL IT AND ATTACH THE

NECESSARY DOCUMENTS
SUBMIT THE COMPLETE TO

ACCOUNT OPENING OFFICER
VERIFICATION BY NADRA BY
ACCOUNT OPENING OFFICER
OPEN THE ACCOUNT MANUALLY

AND ONLINE
ISSUE THE CHEQUE BOOK
Types of Accounts
1. Current Account
2. PLS or SB (Profit &Loss saving Account)
3. Fixed Deposit Account
4. NIDA(National Income Daily Account) Account
SECURITIES
1) Bankers Lien
(Moveable property possessed to the lender cannot be sold in case
of default) Lien is the bankers’ right to hold the property until the
claim on the property is paid. The bankers look at their lien as a
protection against loss on loan or overdraft or any other credit
facility. In ordinary lien, the borrower remains the owner if the
property, but the real or constructive possession remains with the
creditors, though he has no right to sell it.
2) Guarantees
When an application for an advance can offer any tangible security,
the banker may rely on personal guarantees to protect himself
against loss on advances or overdraft to the applicant.
3) Mortgage
(Immoveable property possessed to the lender can be sold in case
of default) A mortgage is the transfer of an interest in specific
immoveable property for the purpose of securing the payment of
money advanced or to be advanced by way of loan, and existing of
future debt, or the performance of an engagement, which may rise
to a particular liability. The person in whose interest the property is
transfer is called mortgagee.
4) Hypothecation
(Immoveable property possessed to the borrower can be sold in
case of default) When property in the shape of goods is charged as
security for a loan from the bank, the ownership and possession is
with the borrower, the goods are said to be hypothecated. The
essence of hypothecation is that neither the property in goods nor
the possession of them passes to the lender, but the security is
granted by means of letter of hypothecation which usually provides
for a banker’s charge on the hypothecated goods.
5) Pledge
(Moveable property possessed to the lender can be sold in case of
default) In a pledge, the ownership remains with pledger (borrower),
but the pledgee has the possession of property until the advance is
repaid in full. While in case of defaulter, the pledge has the right of
sale after giving due notice.
TYPES OF ADVANCES
1. Demand Finance(Ordinary Loans)

2. Running Finance(Overdraft)
3. Cash Finance
4. Small Finance
5. Finance against Bills
6. Agriculture Loans
1) Demand Finance (Ordinary Loans)

These are those advances which are allowed in lump sum for a fixed
period and are repayable in lump sum or gradually in installments.
2) Running Finance
Running finance are advances, which are gradually given to meet
temporary requirements of the customers. A good customer uses
the banks running finance limit, as a mean of protecting his credit in
the market and as a line of second defense to meet his
commitments. There are two types of running finance:
Types of Running Finance
a) Un-Secured
Under this type of overdraft, the bank relies upon the personal
security of the customer or customer’s account.
b) Secured
Under this type of overdraft, the bank allows his customer to
withdraw more than his deposit after giving security against the
amount overdrawn. The securities against which they are given are
as under:
a) Share Certificates
b) Savings Certificates
c) Deposits
d) Mortgage Property
e) Guarantee of a person
3) Cash Finance
These types of loans are given against the following:
1. Against locally manufactured goods

2. Cash finance against rice and paddy
3. Against pledge
4. Against commodities
5. Besides advances against the above commodities bank
may be approached by parties for advances against other
commodities like tobacco, oil, etc.
6. Against Trust Receipts
4) Small Loans
Loans are allowed to contractors’ clearing and forwarding agents.
These loans are repayable within a year.
5) Finance against Bills

The advances are allowed both on local and foreign bills such as:
a) Bill of Exchange and Invoices

b) Bill of Landing
6) Agriculture Loans
Agriculture loans are given to the farmers with holding up to 25

acres for meeting their short medium and long term production
requirements such as:
a) Agriculture inputs
b) Tractors instruments
c) Tube wells
d) Live stock farming
e) Land Improvements
PRODUCTS OF NBP
National Bank of Pakistan always makes efforts to improve its
goodwill in the general public. It introduces different kind of
schemes time to time.
The most popular schemes conducted by NBP are as under:
1. NBP Premium Amdani
2. NBP premium Saver
3. NBP karobar
4. NBP Saibaan
5. NBP Advance Salary
6. NBP Cash Card
7. NBP Investor Advantage
8. NBP Cash n Gold
9. NBP Kisan Taqat
10. NBP Kisan
Dost
11. NBP Pak
Remit
12. NBP Protection Shield
NBP Premium Aamdani
Monthly Income Scheme

• Earn up to 12% p.a. plus
• Minimum deposit of Rs.20,000/- and a maximum deposit of
Rs.5,000,000/- for 5 years
• Free Demand Draft Pay Order and Cheque Book
• Convenience of NBP online Asan Banking (for online banking
customers)
• Free NBP Cash Card(ATM+Debit)
• Running Finance facility up to 90%
• Amount of investment required from Rs. 20,000 to Rs.

5000,000
• Investment period is 5 Years
• Free Demand Draft, Pay Order and NBP online Aasan Banking
• Free Cheque Book /NBP Cash Card (ATM+Debit)
Profit Paid every month as follows:
Period Profit Rates
1st Year 7.50%
2nd Year 8.50%
3rd Year 9.50%
4th Year 10.50%
5th Year 11%
• Financing facility available up to 90% o the deposit value.
• Premature encashment will attract penalties
• Zakat and withholding tax will be deducted as per rule
NBP PREMIUM SAVER
PLS Saving Account
• Produce up to 7.25% p.a. +
• Minimum saving balance of Rs. 20,001/- and a maximum balance of Rs.
300,000/-
• Free NBP Cash Card (ATM + Debit)
• Ease of NBP Online Aasan Banking (for online banking customers)
• Two debit withdrawals permitted in a month & no limit on number of
deposit transactions
• Profit planned on monthly and paid on half yearly basis
• Minimum saving balance of Rs. 20,001 and maximum balance
of Rs. 30,000
• Free NBP Cash Card (ATM+Debit)
• Two debit withdrawals allowed in a month and no limit on
number of deposit transaction
• Profit calculated monthly and paid on half yearly basis
NBP KAROBAR
President Rozgar Scheme

If you are aged between 18 and 45 years, you could be eligible for
easy financing for self employment in the categories below:
• NBP Karobar Utility Store
• NBP Karobar Mobile Utility Store
• NBP Karobar Mobile General Utility Store
• NBP Karobar Transport
• NBP Karobar PCO
• NBP Karobar Tele-Center
NBP KAROBAR Utility Store (Shop)

Financing facility available to set-up a small scale Retail Outlet
(Utility Store in a shop) for purchase of furniture & fixtures. This is
also applicable on payment of security deposit / advance rent under
franchise from the USC. However, stocks will be purchased by the
customer.
NBP KAROBAR Mobile Utility Store

Financing facility available to purchase a 2/3 wheeler, 4 stroke
Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) with
attached Loader body (Thehla type) under franchise from the USC to
carry utility goods for retail sale ideally in areas where accessibility
to conventional utility stores is difficult.
NBP Karobar Mobile General Utility Store

NBP Karobar Mobile General Store (without USC Franchise): This
financing program has been designed on the similar pattern of
Mobile Utility Store. The only difference is that the borrower will
have the liberty of procuring stock/supplies/grocery items from open
market. Under this product the average loan size of Rs.100, 000/-
will be given for a maximum period of five years with a grace period
of three months
NBP Karobar Transport

NBP Karobar Transport: The NBP Karobar Transport is designed to
finance 2/3 wheeler, 4 strokes Petrol/CNG/LPG Vehicle (Auto Scooter
/ Motorcycle Rickshaw) to the eligible citizens of Pakistan for
providing less expensive environment friendly transport facility.
Under this product average loan size of Rs.100,000/- will be
provided for a maximum period of five years with a grace period of
three months.
NBP Karobar PCO

NBP Karobar PCO: This product is designed to finance setting-up a
PCO. NBP will be providing financing for the purchase of
Mobile/Wireless Telephone Set with connection, Credit Balance. The
average amount of financing under this product will be Rs.5,000/-
for a maximum period of two years with a grace period of three
months
NBP Karobar Tele-Center NBP Karobar Utility Store

The product has been designed in collaboration with “UTILITY
STORES CORPORATION OF PAKISTAN (USC)” to provide financing
facility of an average amount of Rs.100, 000/- for a maximum period
of five years with grace period of three months. This is available to
all eligible citizens of Pakistan for setting-up small-scale Retail
Outlet or Mobile Utility Store. The USC will give its franchise to
qualifying Pakistani citizens.
Mear Apna Karoabar

• Minimum down payment, 10% of Asset price (5% of PCO &
Telecaster)
• Tenure 1 to 5 years (for PCO 2 Years)
• Grace period 3 months
• Maximum Loan amount Rs.200,000/-
• Age 18 to 45 Years
• Mark-up (variable) 1 year KIBOR + 2.00% p.a.
• The customer will pay markup @ 6% p.a ,rest will be borne by
GOP
• Life and disability insurance paid by GOP
• Subject to availability of subsidy from GOP
NBP Saibaan
National Bank of Pakistan (NBP) has announced the launch of a housing

scheme to cover all sections of the society with monthly income starting
from as low as Rs. 5000/- per month*. *(Conditions apply)
Open the door to your dream home with NBP

Saiban
Product Items
• Home Purchase
• Home Construction
• Home Renovation
• Purchase of Land plus Construction
• Balance Transfer Facility (BTF)
Home Purchase (House or Apartment)

Financing Up to 35 Million
Amount
Financing 3 to 20 Years
Period
Debt to Equity 85 : 15
(Maximum)
Home Construction – Product Detail

Amount
Period
(Maximum)
Home Renovation
Amount
Period
(Maximum)
Purchase of Land plus Construction

Amount
Period
(Maximum)
Balance Transfer Facility (BTF)

If you have a home Finance Facility outstanding with
another bank you can have it transfer to NBP through a
hassle-free process.
NBP Advance Salary
In January 2003 National Bank of Pakistan has launched a unique

product, NBP Advance Salary. Currently this product is for fixed-
income permanent employees of Federal & Provincial Government,
Semi-Government, Autonomous, Semi-autonomous, local bodies and
other Government organizations. The product is purely cash flow
based and offers its holder to avail 20 net salaries in one go to be
repaid in up to 60 (sixty) months. With no collateral, insurance or
requirements, Advance Salary provides rapid disbursement in a
short turnaround time.
“NBP advance salary “product alone has attracted many customers.

120months salary in advance (certain conditions apply), minimum
documentation, repayable in 5 years, no processing charges; no
collaterals, no guarantees, no insurance, Mark-up charged at 15%
per annum on reducing balance method
Following documents are required to advance salary
• CNIC of borrower.
• Departmental card of borrower.
• Three last salary slips.
• Two referring person one of equal Grade other officer Grade
and their CNIC and salary slip.
• Undertaking by employment on 100 stamp paper.
• Three undated Cheques.
• ICIL Report.
• C IB Report.
• Annexure C and D.
• Auto Rollover Form.
NBP Cash Card
Cash Free Spending - Step by Step
Step 1
To identify a merchant outlet that welcomes your card,
Just look for the NBP or Orix Logo.
Step 2
To make a payment give your NBP Cash Card to the merchant. The
merchant will swipe
Your card on the POS (Point Of Sale) machine and the purchase
amount will be entered.
Step 3
Enter your digital ATM Pin for verification (this is the same as your
cash withdrawal pin).
Step 4
After Approval a transaction slip will be provided. Collect your card
and slip and confirm you transaction amount
Step 5
Your purchase transaction is now complete and the transaction
amount has been debited to your NBP account. Please retain your
transaction for further reference.
NBP Cash Card Safety Tips
• Welcome to our relationship enriched with a wide range of

remarkable e-banking service. For your safety and convenience
we would recommend some precautions while using NBP CASH
CARD at ATMs and merchant outlets.
• Immediately after receiving the NBP Cash Card, change your
PIN Code at the nearest NBP ATM.
• Never share your Personal Identification Number (PIN) or
given it out over telephone.
• Never write your PIN Code on your card.
• Never keep your card and PIN at the same place.
• As you approach an ATM, beware of your surroundings, if you
notice anything unusual, visit the ATM later.
• Immediately report a lost of stolen card to your NBP branch.
• Stand close to the ATM machine while entering your PIN and
do not allow anyone to watch.
• Ensure that the merchant has entered the correct amount of
transaction before you enter your PIN code.
• Maintain your POS receipt as a record and ensure that he card
returned to you by the cashier/attendant is yours.
• Protect your card from direct sunlight and magnetic fields.
• Do not bend your card.
• Carefully dispose off your old card when you are issued a new
one.
NBP Investor Advantage
A margin financing facility developed for retail investors in line with

Government’s efforts to promote Pakistani capital markets and will
replace the Badla (COT) system with a stable financing system in
line with international financial markets. Besides offering a
comfortable environment to the retail stock investors, a financing
facility will also be available. Willing investors can avail NBP
financing at very easy terms requiring minimum documentation and
least turn around time. The NBP financing also does not require any
security from the customer except for the customer’s equity.
Importantly, the customer’s equity will also be freely available for
investment. Customer has to fulfill all NBP and SBP regulatory
requirements.
To obtain NBP Investor Advantage facility Eligible if

A Pakistani Nationals with valid computerized national ID card
• Over 21 years of age
• Have an account with NBP designated branch
• willing to invest equity in the form of cash or NBP approved shares
• No default with any financial institution
For utilizing the NBP Investor Advantage, please follow

the following simple steps
• Obtain Facility Application form from the NBP Margin Financial
Desk at NBP Main Branch.
• Fill in the application form and submit it to the branch at the
Margin Financial Desk.
• On application approval, customer deposits equity as Cash in
the customer’s margin financial account at bank .Alternatively
NBP approved Shares can also deposited in the NBP CDC
account.
• Customer would then be eligible for trading through trading
center of the NBP Subsidiary namely Taurus Securities limited
adjacent to the NBP Main Branch at Karachi.
• Customer’s own equity and financial amount will both
available for trading.
NBP Cash n Gold
Get extra benefits from your Gold.

Meet your need for ready cash against your idle gold jewellery with
no minimum or maximum limits. Facility of Rs. 14000/- against 10
grams of gold.
• Rate of mark up 15.50% p. a.
• Facility of Rs.14000 against each 10 grams of net content of
Gold.
• NO maximum limits of cash.
• Repayment after one year.
• Roll over facility.
• Only Gold ornaments are acceptable.
• Weight and quality of Gold to be determined by NBP’s
appointed schroffs.
• No penalty for early payments.
NBP Kisan Taqat
National Bank Pakistan Dairy Form Scheme
Advantage to Getting Loan from NBP
• Very Near Banks Branch from you
• Easy and Short Paper working
• Get ride from the tension payment of Installments
• Experience Staff’s Help and Guide
NBP Kisan Dost
NBP KISAN DOST

NBP’s affordable agricultural program offers you a wide range of
financing. Loans available for the farmers for
• Production
• Development purposes
• Purchases of tractors
• Installations of tube wells
• Purchases of agricultural implements
• Micro loans
• Good own construction
• Construction of fish pond
• Livestock farming
• Milk processing
• Cold storage
• Bio-gas plants etc.
There are two types of agriculture finance these are
1. Production Loans
2. Development Loans
Production Loans
In production loans, loans are provided for Seeds, Fertilizer and
Pesticides. These loans are provided for one year at the rate of 12%.
Limit of these loans are Rs.250, 000.The bank provide the loans
against the pledge of land.
Development Loans
In this type of loans bank provide loans for Tractor, Life Star, Dairy
and Machinery. These loans are provided for more than one year
and limit of these loans are Rs.500,000.
Requirements
1) Agri Passbook
2) CNIC
3) Photographs
4) Fard of land guarantors
5) AKS Sajrah
6) ICIL Report
7) NOC
8) SS Card (Specimen Signature Card)
9) CIB report
The borrower makes the payment of loan on annually basis interest

+ Principal
NBP Pak Remit
Production Information
Pakremit is an internet based Home Remittance Service. This
service is available to U.S. residents for sending money to their
family and friends in Pakistan. One must have a valid US Dollar
account with a U.S. bank or a US Dollar credit or debit card in order
to remit funds through this channel. Remitters in USA can log on to
our user friendly website, www.pakremit.com and easily remit funds
to Pakistan from the comfort of their homes, in a matter of minutes.
The service is fully secure with advance encryption application and
is available for use 24 hours a day, 7 days a week. Fees and
exchange rate have been set at competitive levels and the remitters
have the ability to track delivery of funds as well.
Process
• Remitters log on to www.pakremit.com and after completing

the registration process, are able to remit funds. The whole
process takes a few minutes.
• Funds in Pak Rupees can be sent to beneficiaries, having an
account with any bank in Pakistan, including NBP. While funds
are credited directly to beneficiaries maintaining accounts with
NBP, a pay order or demand draft is couriered to other banks for
their customers. Pay order or demand draft can also be couriered
directly to the beneficiary’s office or home, if requested by the
remitter.
• Funds in US Dollars can be sent only to a Beneficiary
maintaining a US Dollar account with one of NBP’s Foreign
Exchange Branches. Click here for details of NBP Foreign

Exchange Branches.
NBP Protection Shield
Insurance Coverage In case of Accidental Death (Including death

due to *Riots, Strikes, Civil commotion, Acts of Terrorism and
Natural Calamities like Flood, Earth Quake, Cyclones etc.)
Coverage of Rs. 200,000/- for Rs. 20/- per month
Definitions
Provided the insured is not directly involved in these activities
Accident
Unintentional, unfortunate or a harmful event by chance or
apparent cause.
Accidental Death
Death due to accidental injuries, but not illness.
Insured Person
A National Bank of Pakistan PLS account holder, aged between 18
years and above, and whose premium is deducted & details are
reported to the selected insurance company by NBP.
Policy
Group Personal Accident Policy dated 26/09/05 executed between

NBP and Insurer.
Principal Sum
The amount stated in the Policy’s Schedule of Benefits as respects
each Insured Person.
Product Detail
• No medical Required
• No Documentation
• Fixed Auto Premium deduction Facility (After customer
consent)
• Choice of Deactivation
Eligibility
• NBP PLS Account holder
• 18 Years and Above
SERVISES OF NBP
International Banking
National Bank of Pakistan is at the forefront of international banking
in Pakistan which is proven by the fact that NBP has its branches in
all of the major financial capitals of the world. Furthermore, we
have recently set up the Financial Institution Wing, which is placed
under the Risk Management Group. The role of the Financial
Institution Section is
To effectively manage NBP's exposure to foreign and domestic
communication
• Manage the monetary aspect of NBP's relationship with the
correspondents to support trade, treasury and other key
business areas, thereby contributing to the bank's profitability
• Generation of incremental trade-finance business and
revenues
NBP offers:
• The lowest rates on exports and other global banking products
• Access to different local commercial banks in international
banking
NBP Pak Rupee Traveller’s Cheque
Negotiability: Pak Rupees Traveler’s

Cheques are a negotiable
instrument
Validity: There is no restriction on
the period of validity
Availability At 700 branches of NBP all
over the country
Encashment At all 400 branches of NBP
Limitation No limit on purchase
Safety NBP Traveler’s Cheques are
the safest way to carry our
money
Letter of Credit
NBP is committed to offering its business customers the widest
range of options in the area of money transfer. If you are a
commercial enterprise then our Letter of Credit service is just what
you are looking for. With competitive rates, security, and ease of
transaction, NBP Letters of Credit are the best way to do your
business transactions.
Commercial Finance
Let us help make your dreams become a reality
Our dedicated team of professionals truly understands the needs of
professionals, agriculturists, large and small business and other
segments of the economy. They are the customer’s best resource
in making NBP’s products and services work for them.
Foreign Remittance
To facilitate its customers in the area of Home Remittances,
National Bank of Pakistan has taken a number of measures to:
• Increase home remittances through the banking system
Meet the SBP directives/instructions for timely and prompt delivery
of remittances to the beneficiaries
New Features:
The existing system of home remittances has been
revised/significantly improved and well-trained field functionaries
are posted to provide efficient and reliable home remittance
services to nonresident Pakistanis at 15 overseas branches of the
Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-
Jazira, Saudi Arabia.
• Zero Tariffs: NBP is providing home remittance services
without any charges.
• Strict monitoring of the system is done to ensure the highest
possible security.
Special courier services are hired for expeditious delivery of home

remittances to the beneficiaries.
Swift System
The SWIFT system (Society for Worldwide Inter bank Financial
Telecommunication) has been introduced for speedy services in the
area of home remittances. The system has built-in features of
computerized test keys, which eliminates the manual application of
tests that often cause delay in the payment of home remittances.
The SWIFT Center is operational at National Bank of Pakistan with a
universal access number NBP-PKKA. All NBP overseas branches
and overseas correspondents (over450) are drawing remittances
through SWIFT. Using the NBP network of branches, you can safely
and speedily transfer money for our business and personal needs.
Short Term Investment

NBP now offers excellent rates of profit on all its short term
investment accounts. Whether you are looking to invest for 3
months or 1 year, NBP’s rates of profit are extremely attractive,
along with the security and service only NBP can provide.
N.I.D.A
National Income Daily Account The scheme was launched in
December 1995 to attract corporate customers. It is a current
account scheme and is part of the profit and loss system of
accounts in operation throughout the country.
MODE OF CALCULATION
AVERAGE BALANCE DURING A CALENDAR MONTH
Equity Investment
NBP has accelerated its activities in the stock market to improve its
economic base and restore investor confidence. The bank is now
regarded as the most active and dominant player in the
development of the stock market. NBP is involved in the
following:
• Investment into the capital market
• Introduction of capital market accounts (under process)
NBP’s involvement in capital markets is expected to increase
its earnings, which would result in better returns offered to
account holders.
Trade Finance and Other Business

Loan
Agriculture Finance
NBP provides Agricultural Finance to solidify faith, commitment and
pride of farmers who produce some of the best agricultural products
in the World.
Agricultural Finance Services

“I Feed the World” program, a new product, is introduced by NBP
with the aim to help farmers maximize the per acre production with
minimum of required input. Select farms will be made role models
for other farms and farmers to follow, thus helping farmers across
Pakistan to increase production.
Agricultural Credit
The agricultural financing strategy of NBP is aimed at three main
objectives:-
• Providing reliable infrastructure for agricultural customers
• Help farmers utilize funds efficiently to further develop and
achieve better production
• Provide farmers an integrated package of credit with supplies
of essential inputs, technical knowledge, and supervision of
farming.
Agricultural Credit (Medium Term)

• Production and development
• Watercourse improvement
• Wells
• Farm power
• Development loans for tea plantation
• Fencing
• Solar energy
• Equipment for sprinklers
Farm Credit
NBP also provides the following subsidized with ranges of 3 months
to 1 year on a renewal basis.
• Operating loans
• Land improvement loans
• Equipment loans for purchase of tractors, farm implements or
any other equipment
Livestock loans for the purchase, care, and feeding of livestock
Production Loans
Production loans are meant for basic inputs of the farm and are
short term in nature. Seeds, fertilizers, sprayers, etc. are all
covered under this scheme.
Utility Bills Collection
For the convenience of the customer, National Bank of Pakistan also

collects different kinds of utility bills such as:
Electricity Bills, Sui-Gas Bills, Telephone Bills etc.
Foreign Currency Account
Launched to attract deposits in foreign currencies like US Dollars,

Pound Sterling, Dutch Mark, and Japanese Yen. Whether you are a
resident or a non-resident of Pakistan, NBP invites all to operate in a
foreign currency account.
Corporate Finance
Working Capital and Short Term Loans

NBP specializes in providing Project Finance – Export Refinance to
exporters – Pre-shipment and Post-shipment financing to exporters –
Running finance – Cash Finance – Small Finance – Discounting &
Bills Purchased – Export Bills Purchased / Pre-shipment / Post
Shipment Agricultural Production Loans
Medium term loans and Capital Expenditure

Financing
NBP provides financing for its clients’ capital expenditure and other
long-term investment needs. By sharing the risk associated with
such long-term investments, NBP expedites clients’ attempt to
upgrade and expand their operation thereby making possible the
fulfillment of our clients’ vision. This type of long term financing
proves the bank’s belief in its client's capabilities, and its
commitment to the country.
Loan Structuring and Syndication
National Bank’s leadership in loan Syndicating stems from ability to

forge strong relationships not only with borrowers but also with
bank investors. Because we understand our syndicate partners’
asset criteria, we help borrowers meet substantial financing needs
by enabling them to reach the banks most interested in lending to
their particular industry, geographic location and structure through
syndicated debt offerings. Our syndication capabilities are
complemented by our own capital strength and by industry teams,
who bring specialized knowledge to the structure of a transaction.
Cash Management Services

With National Bank’s Cash Management Services (in process of
being set up), the customer’s sales collection will be channeled
through vast network of NBP branched spread across the country.
This will enable the customer to manage their company’s total
financial position right from your desktop computer. They will also
be able to take advantage of our outstanding range of payment,
ejection, liquidity and investment services. In fact, with NBP, you’ll
be provided everything, which takes to manage your cash flow more
accurately.
Learning as an Internee
I joined National Bank of Pakistan, Main Branch Vehari on 26 th June,

2010. First day, the manager introduced me about the functioning
of the branch and the staff. The manager told me that counter is the
most important place of the bank. During the six weeks of my
internship, I worked in different sections of the branch and did the
maximum practice of banking system details of which is as under:
a) General Banking
First of all, I was asked to work in different sections of general
banking. I was attached to Counter with Mr. Khalid who has good
command on this section. Here we dealt with new customer who
wanted to get information and to deal with the branch. This is a very
interesting department because here we met people of different
types and deal with them accordingly. In this section, I observed the
following functions
b) Cheque at Counter
A cheque to withdraw the amount is presented on the counter with
the following requisites:
1) Name of the Account Holder
2) Current or previous date
3) Amount in figures
4) Amount in wording
5) One signature of the account holder in the right bottom
corner of the cheque
6) Two signature of the bearer on the back
7) Branch Stamp in front of the cheque
8) Verification Stamp in front of the cheque
9) If the Account Holder uses thumb instead of signature
then the Pass Book is necessary with the cheque
Operation’s officer checks and verifies all these requisites. If it

fulfills all the requisites, it is forwarded for payment after a certain
procedure.
c) Cheque Payment Procedure

After all the requisites are verified and then the excessive balance is
checked and prescribed amount is deducted narrated on the cheque,
then SIGNATURE VERIFIED stamp (in case of signature only) on the
signature and a PAY CASH stamp are fixed and a Token is given to
the cheque bearer after writing Token No. on the specified cheque.
Then the Officer G-II verified the cheque and forwarded it to the
cashier where the cheque bearer receives the amount from the
account.
d) Issuance of Demand Draft

A Demand Draft is provided to the client in whom he has to
specify that bank it is drawn. The amount both in words and figures
is written on Demand Draft.
e) Bills Collections Department

I spent second week of my training in bills collection department.
Mr. Ameer Hamza is the in charge of this section. Here we collected
utility bills like electricity bills, gas bills, and telephone bills.
f) Bill Remittance Department

This is very important and interesting department. This section
deals with the transfer of money from one branch to another
branch. Nearly four drafts are issued daily from this department.
Here I know how the amount is transferred and what the procedure
is. This department also deals with TT transfer of money. I worked
nearly two weeks in this department.
g) Deposit Department
Deposit department deals with Current, Savings, and Fixed
Accounts. In current account the bank does not give any interest
and you can deposit the whole amount in lump sum in business
hours. However in PLS savings account we can only withdraw up to
Rs.25000/- without any notice otherwise a prior notification of a
week is required to the bank if the amount to be withdrawn is more
than Rs.25000/- Old ages are interested in Fixed Account usually.
The rate of interest is higher more than that of in Current and PLS
savings Account but the amount cannot be withdrawn before a
specific time fixed by the client. To open the account customer have
to fulfill an application form and submit to the concerning authority.
In Current and PLS saving Account, a Cheque Book is issued to the
client and he becomes the Account Holder of NBP. I worked in this
department for one and a half week.
h) Pension Payment Procedure
The pension payment procedure is the toughest procedure, because

a lot of people want to get their pension as soon as possible. Here I
seek how the dealing with the retired persons. Here I seek how the
pension increase and how the bank gives every month pension to
retired persons. Pension 25% increase and medical allowance is also
25%.if BPS less than 15.and if BPS more than 15 the increase
20%and medical allowance is 20%.This year Government have done
admirable work. Which is that they family pension is if less than
Rs.2250/=, then the pension of family should be Rs.2250/=.and also
that person take the medical 25%and now his pension is
Rs.2813/=and that person who is alive his pension is if less than
Rs.2250/=, it should be direct Rs.3000/= and this person also take
the medical 25% and now his/her pension is Rs.3750/=.
i) Outwards Bills for Collection

(OBC)
I seek how Outward Bill for collection, the cheques drawn on the
bank that is out of city. These cheques are not collected through
NIFT. The banks clear these by sending them to the relevant branch
through mail. This service includes all activities involved in
collecting their claims on customers of the other branches of same
bank or of the other banks, located outside the clearinghouse area.
Procedure
• Receive instrument, this instrument
• It is in the name of the account holding customer
• Must not be post dated or stale
• Must have same amount in words and figure
• Affix special crossing stamp on the face of
instrument
• Affix OBC stamp on the instrument, and on pay-in
slip
• Entry in OBC register
• Write OBC# on the instrument
• Prepare outward bill for collection schedule
NBP Awards & Achievements
• Best Foreign Exchange Bank 2008 awarded by world's leading

financial journal Global Finance.
• Best Return on Capital for 2006 amongst all Banks in Asia.

Banker Magazine in July 2007.
• World's leading financial journal Global Finance has named

NBP as the Best Emerging Market Bank from Pakistan for the
year 2006.
• Best Foreign Exchange Bank Pakistan award for the year 2006
by world's leading financial journal Global Finance.
• Due to consistent improvement in NBP's Core Profitability

Asset Quality and Economic Capitalization in recent years,
Moody’s Investors Service upgraded the Financial Strength
Rating (FSR) rom E+ to D in November 2005.
• Best Foreign Exchange Bank Pakistan award for the year 2005
by world's leading financial journal Global Finance.
• Best Bank Pakistan award for the year 2005 by world's leading
financial journal Global Finance.
• The Asian Banker a reputable financial journal has published
the report of its research project on the ranking of 300 of
Asia’s Strongest Banks based on an 11 Dimensional Dynamic
Scoring Criteria has adjudged National Bank of Pakistan as the
Strongest Bank in Pakistan.
• On the basis of overall financial performance during 2004 NBP

has been listed Amongst top 1000 banks in the world and
Number 1 Bank in Pakistan by the prestigious Banker
Magazine in its issue of July 2005 .
• The Banker Magazine in July 2005 recognized NBP as the
10th Best Bank in terms of Profit on Capital in the world.
• Bank of the Year awarded for the year 2005 by the world
renowned. The Banker magazine owned by the Financial
Times Group London.
• On an all Pakistan basis National Bank of Pakistan was

awarded the Kissan Times Award for the year 2005 by the
Prime Minister Mr. Shaukat Aziz for its services in the
Agriculture Sector .World leading financial journal Global
Finance in an exclusive survey has named NBP as the Best
Emerging Market Bank from Pakistan for the year 2005.
• Bank of the Year awards for the year 2004 by the world
Times Group, London.
• Euro money Magazine, a leading and prestigious journal,

published from London , UK , in its issue of March 2005 has
published Moody's Investors Service rankings in which NBP is
the only Pakistani bank which has been ranked among the Top
100 banks of Asia for it performance in the fiscal year 2003.
• WEBCOP-AASHA an alliance against gender discrimination at
workplace presented a Recognition Award to National Bank
of Pakistan on December 18, 2004 for having a Gender
Sensitive Management.
• In May 2004, NBP's standalone long-term rating was
upgraded by JCR-VIS Credit Rating Agency to AA (double A)
from AA (double A minus) with stable outlook while standalone
short-term rating was maintained at A-1+ (A one plus). This is
now the best rating for a local commercial bank in Pakistan.
• In its issue of March 2004 Global Finance has also declared
NBP as The Best Foreign Exchange Bank in Pakistan.
• The Banker Magazine in July 2003 recognized NBP as the
bank with the highest return on capital in Asia and No.8 in the
world.
• World's leading financial journal Global Finance after a
worldwide survey declared NBP in its issue of May 2003 as one
of the best banks in the emerging markets.
renowned The Banker magazine owned by the Financial Times
Group London.
Times Group London.
President’s Awards
• Mr. Syed Ali Raza, Chairman & President NBP was awarded.
The Asian Banker Leadership Achievement Award 2007 by
Asian Banker (an internationally reputed Financial Journal in
its issue of June 2007.
• Mr. Syed Ali Raza Chairman & President, NBP was conferred
Sitara-i-Imtiaz by the President of Pakistan General Pervez
Musharraf on August 14, 2005.
• Business Week of The McGraw Hill Companies in its July
11,2005 edition has adjudged Mr. Syed Ali Raza Chairman
President NBP as one of the twenty five Leaders of Asia at the
& Forefront of Change and has identified them as Stars of Asia
including the President of Indonesia.
• Mr. Syed Ali Raza’s (Chairman & President, NBP) capabilities
were also recognized by the Institute of Bankers in Pakistan
when he was awarded a gold medal in 2003.
Financial Analysis
In this section two topics are discussed. Two major topics of this
section are:
• Financial Highlights
• Balance Sheet
• Profit & Loss Account
• Raito Analysis
FINANCIAL POSITION
Different facts and figures of opening balances of the year 2010
about National bank of Pakistan which show the financial position
are as under:
FINANCIAL HIGHLIGHTS
TOTAL DEPOSITS Rs. 726,465 Million

ADVANCES Rs. 475,243 Million
INVESTMENTS Rs. 217,643 Million
AFTER-TAX PROFIT Rs.18,212 Million
TOTAL ASSETS Rs. 945,903.3 Million
TOTAL EXPENDITURES Rs. 26.30 Billion
NO OF BRANCHES 1287
PROFIT Rs. 18,212
NO. OF EMPLOYEES 16,248
National Bank of Pakistan Balance Sheet

As at December 31, 2009
ASSETS 2008 2009

(Rs.in million) (Rs.in million)
Cash and Equivalents 140,477.0 138,631.3
Trading Asset Securities 1,009.2 2,381.3
TOTAL CASH AND SHORT TERM 156,995.0 160,951.5
INVESTMENTS
Other Receivables 2,105.7 13,566.9

TOTAL RECEIVABLES 2,105.7 13,566.9
Restricted Cash 5,792.1 6,823.6
Other Current Assets 16,276.2 21,070.2
TOTAL CURRENT ASSETS 195,166.9 218,341.3
Gross Property Plant and 28,214.4 29,982.1
Equipment
Accumulated Depreciation -3,962.7 -4,810.5
NET PROPERTY PLANT AND 24,251.7 25,171.6

EQUIPMENT
Deferred Tax Assets, Long Term 3,203.6 3,064.5

Other Intangibles 20.3 29.3
Other Long-Term Assets 34,280.7 32,238.3
TOTAL ASSETS 820,077.2 945,903.3
LIABILITIES & EQUITY
Accrued Expenses 15,204.6 18,247.5

Current Portion of Long-Term 5,117.9 2,921.1
Debt/Capital Lease
Current Portion of Capital Lease 15.2 19.0

Obligations
Other Current Liabilities, Total 10,242.6 10,654.7

TOTAL CURRENT LIABILITIES 687,806.3 792,041.4
Long-Term Debt 3,049.6 8,220.9
Capital Leases 10.0 23.6
Minority Interest 112.7 110.9
Unearned Revenue, Non-Current 133.3 218.0
Pension & Other Post-Retirement 3,052.8 3,531.0
Benefits
Deferred Tax Liability Non-Current -- --

Other Non-Current Liabilities 21,573.9 20,425.7
TOTAL LIABILITIES 715,738.7 824,571.6
Common Stock 8,969.8 10,763.7
Retained Earnings 67,612.0 78,212.5
Comprehensive Income and Other 27,756.7 32,355.4
TOTAL COMMON EQUITY 104,338.5 121,331.6
TOTAL EQUITY 104,338.5 121,331.6

TOTAL LIABILITIES & EQUITY 820,077.2 945,903.3
Profit and loss Account
For the year ended on December 31, 2009.
2008 2009
(Rs.in (Rs.in million)
million)
TOTAL REVENUES/SALES 41,957.1 45,980.5
Cost of Goods Sold 261.8 330.3
GROSS PROFIT 41,695.3 45,650.3
Selling General & Admin 18,101.5 22,486.4

Expenses, Total
EBT, EXCLUDING UNUSUAL 22,261.3 22,198.8

ITEMS
Other Unusual Items, Total 988.0 --
Other Unusual Items 988.0 --
EBT, INCLUDING UNUSUAL 23,249.3 22,198.8

ITEMS
Income Tax Expense 7,565.2 4,099.8
Minority Interest in Earnings -3.0 1.8
Earnings from Continuing 15,681.1 18,100.8

Operations
NET INCOME 15,681.1 18,100.8
NET INCOME TO COMMON 15,681.1 18,100.8

INCLUDING EXTRA ITEMS
NET INCOME TO COMMON 15,681.1 18,100.8

EXCLUDING EXTRA ITEMS
What is Financial Ratio

Analysis?
“Financial ratio an index that relates to accounting numbers and is

obtained by dividing one number by the other” The level and
historical Trends of these ratios can be used to make inferences
about a company's financial Condition, its operations and
attractiveness as an investment.
Ratio Analysis enables to the investor, supplier that they could know
the real position of the business. To do this compares your ratios
with the average of businesses similar to yours and compare your
own ratios for several successive years, watching especially for any
unfavorable.
There are following Ratios that we discuss below:
• Liquidity Ratio
• ACID-TEST/ (QUICK) Ratio
• Leverage Ratio
• Activity Ratio
• Profitability Ratio
LIQUIDITY RATIO
Current Ratio
Current Ratio = Current Assets

Current Liabilities
2008 2009
195,166.9/687,806.3 218,341.3/792,041.4=0.276:
=0.284:1 1
Explanation
A relatively high ratio is an indication that the firm is liquid and has
the ability to pay its current obligation in time as and when they
become due. On the other hand, a relatively low current ratio
represents that the liquidity position of the firm is not good and the
firm shall not be able to pay its current liabilities in time without
facing difficulties. Current ratio of national bank shows that bank is
not in position that it pay to its obligation in 2008 and 2009.
Graph
ACID-TEST/ (QUICK) Ratio
Acid-test (quick) Ratio = Current Assets-Inventories

Current Liabilities
First of all we find to inventory the method of finding is

Years Current Assets - Cash - Account Receivable =
Inventory
2008 195166.9 - 140477.0 - 2105.7 =
52584.2
2009 218341.3 - 138631.3 - 13566.9
=66143.1
2008 2009
142582.7/687806.3 = 0.20:1 152198.2/792041.4 = 0.19:1
Explanation
The Acid-test ratio is very useful in measuring the liquidity position
of firm.it measure the firm’s capacity to pay off current obligations
immediately. This ratio of 2008 and 2009 show that the bank is not
in position to pay his liabilities immediately,
Graph
Quick-AcidTest
0.202
0.2
0.198
0.196
0.194
0.192 Quick-Acid Test
0.19
0.188
0.186
0.184
2008 2009
Leverage Ratio
In leverage two ratios are included
• Debt-to-Equity
• Debt-to-total-Assets
Total Debt
Debt-To-Equity =
____________________________________________
Shareholders Equity (Total Asset –
Total Liabilities)
2008 2009
715738.7/104338.5 = 6.86 824571.6/121331.6 = 6.80
Explanation:
The ratio indicates the proportionate claim of owners and the

outsiders against the firm’s assets. If we see to the ratio of both
years it indicates that NBP debt is more than its equity so outsiders
can claim on its assets any time.
Graph
Debt - to –total –Assets = Total Debts

Total Assets
2008 2009
715738.7/820077.2 = 87% 824571.6/ 945,903.3 =87%
Explanation:
The ratio indicates the relative extent in which firm is using
borrowed money. In 2009 and 2008 the company debts are more
than to its assets so the only 13% shareholders equities are left for
covering to creditor. This ratio shows that the 87% of assets are
financed while 13% we have share holder equity. That shows the
Financial Risk for creditors. More the share holder equity lesser the
Financial Risk for creditors.
Graph
Debt-To-Total Assets
100%
90%
80%
70%
60%
50%
40% Debt-To-Total Assets
30%
20%
10%
0%
2008 2009
Activity Ratios
Total Assets turnover = Net Sales

Total Assets
2008 2009
41957.1 / 820077.2 = 0.51 45980.5 /945903.3 = 0.49
Explanation:
It indicates the efficiency of Assets to generate sale. If we
check to the efficiency of Assets to generate sale in 2008
and 2009 then we can say that it is not satisfactory for NBP.
Graph
Total AssetsTurnover
0.515
0.51
0.505
0.5
0.495 Total Assets Turnover

0.49
0.485
0.48
2008 2009
 Receivable Turnover
 Receivable Turnover in Days
Receivable Turnover = Credit Sale

Receivable
2008 2009
41,957.1/2105.7 = 20 times 45,980.5/13866.9 = 3times
Explanation
This ratio shows us that how many times receive cash from
receivables. In this ratio we see that in the year 2008 we get cash
from receivables 20 times, and in 2009 this ratio decreases from 20

times to 3 times.
Graph
Receivable Turnover in Days: 365

RT
2008 2009
365/20 times = 18 days 365/3times = 122 days
Explanation
This ratio indicates that how much days are required to return The
Account Receivables. In this ratio we see that in the year 2008 we
get cash from receivables in 18 days, and in 2009 years NBP can
receive to its Account Receivables in 122 days.
Graph
Profitability Ratios
• Net Profit Ratio
• ROI (return on investment)
Net Profit Ratio = Net profit after tax

Net Sales
2008 2009
15,681.1/41957.1 =37% 18,100.8/45,980.5= 39%
Explanation
The ratio indicates the overall profitability and hence it is very useful to
proprietors. The ratio also indicates the capacity of firm to face adverse
economic conditions such as price completion, low demanded. So the NBP
ratios of 2008 and 2009 indicates that it is good but not as could be.
Graph
Net Profit Ratio
40%
39%
39%
38%
38% Net Profit Ratio
37%
37%
36%
2008 2009
Return on Investment
Formula = Net profit after taxes Net Sales

Net sales Total Assets
2008 2009
5681.1/ 41957.1 41957.1 / 34280.7 18100.8/4598.5 4598.5/32238.3 100 =
56%
100 = 16.47%
Explanation
This ratio indicates the efficiency of generating profit with available assets. If we see
to 2008 then the profit is 16.47% so the profit margin is very low in this year the bank
assets have no much capacity to produce more profit for bank on the other hand if we
see to 2009 then the profit is 56% in this year the bank assets have the capacity to
produce profit.
Graph
Financial Ratios Analysis
Ratios 2008 2009
Current Ratio 0.284 0.276
Acid Test/Quick Ratio 0.20 0.19
Debt to Equity Ratio 6.86 6.80
Debt to Total Assets 87% 87%
Total Assets Turnover 0.51 0.49
Receivable Turnover 20 Times 3Times
Receivable Turnover 18 Day 122 Day
In Days
Net Profit Ratio 37% 39%
Return on Investment 16.47% 56%
PEST Analysis
Political
• Privatization policy and de-regulation.
• Impact on subsidized credit affecting and NCB’s.?
• Employment practices, unions and association.

• Political interference and harassment.
• Incidents of high taxation on banking industry.
Economic:
• Constraints in mobilizing of public savings because of inflation.
• Staff cost.

• Operating cost.
• Bad debts.
Social and cultural:

• Inadequate H.R.
• Cultural strain to saving
• Defaulter’s lobby
• Declining education and work ethics.
• Inadequate accountability.
• Adequate empowerment.
Technological:
• Inadequate communication infrastructure.
• Inadequate computer Facilities.
• Inadequate training Facilities.
SWOT ANALYSIS
Here four topics are discussed. They are as under:
• Strengths
• Weaknesses
• Opportunities
• Threats
Strengths

• The banking time of at the bank till 5:00 pm. This is highly
useful for those customers who find it difficult to leave their
officers in the morning. It is also highly useful who deposits
their amounts on daily basis at evening.
• The organization showing concern for the people, ethics and
environment enjoy good public reputation and are able to
reap the benefits in the long run. National Bank management
is quite sensitive to this issue. The productivity of the bank is
very good. Bank is providing a high quality service to its
customers.
• Different cameras are located at different locations to monitor
the working of staff members and outside customers by
branch manager.
• Bank enjoys a strategic competitive advantage over the JS,
Alfalah, and Al-habib bank, RBS, Allied etc
• With the passage of time National Bank has expand their
branches and now running almost 1287 branches.
• Western union and express money transfer has exist in
National Bank of Pakistan
• Professional staff, right person hired on the right place.
Weaknesses
• In formal language and Dressing used in National Bank of
Pakistan.

• In NBP there is no major use of computer for maintaining the
records, of branches as compared to other banks of the
country.
• Because NBP is a govt. owned organization so there is a lack
of implementation of rules and regulations.
• In this organizational the organizational structure is
bureaucratic which a barrier in rapid and effective decision
making.
• Despite, cultural change program the working condition of the
NBP is not up to standard.
• Due to wrong recruitment policy staff of NBP is not proficient
in their work.
• In NBP, employees are recruited on the basis of favoritism or
through other tools of corruption.
Opportunities
• NBP by establishing new branches in foreign countries can
expand its business and can enjoy with the profit.
• To enjoy with large amount, NBP can introduce a
comprehensive range of bonds.
• NBP can enjoy handsome return its funding base by investing
in capital markets in the foreign countries.

• The basic need of the consumer such as housing,
transportation and other durable goods are not adequately
financed by the banks. So by initiating these services, the
bank can enjoy with more funds.
• Until recently the bank perceived as purely commercial
banking entity so in order to expand its business the bank
may start investment banking by investing in the portfolio of
handsome return.
• It can establish advisory services in order to facilitate the
customers in investing in the securities.
Threats
• The no. of banks in Pakistan is increasing with the passage of
time. So due to poor working condition and poor customer
service it may be possible NBP will lose its market share in
future.
• In our country, the rate of inflation is increasing along with the
unemployment. So due to the increase in price of the
products, the savings of the nation is decreasing with the
passage of time. So it is the threat for the banking sector. In
the future, the deposits of the bank will decrease.
• On NBP Govt. policies have strong impact. A slight change in
Govt. policies may affect the performance of the bank. The
bank has to work with in the regulation frame work.

• The hiring of uneducated people is a major threat for National
Bank of Pakistan
RECOMMENDATION AND CONCLUSION
Here we discuss four topics that are:
• Findings
• Suggestions
• Recommendations

• Conclusion
Findings
• There is no motivational factor in employees.
• Company personal policies are not good.
• The employees are not much aware of the latest Technology
• Changing market situation, State Bank Rules and regulations
and Government policies are causing problems for operating
properly in market.
• The performance appraisal for the employees is not carrying
properly and there is no proper system for evaluation of the
employees’ performance.
• The top management is not doing sufficient efforts to increase
the motivation and job satisfaction of employees that is
leading towards decrease in productivity.
Suggestions
• Proper time to time training should be conducted to lower
staff as well to enhance their productivity.
• The organization should take steps to use the latest IT
technology including different banking software to increase
the productivity of the organization and reduce the time of
different process.

• All the authorities, responsibilities and duties should be
clearly communicated to the employees.
• The computer technology should be used in decision
making processes as well as practicing in the developed
countries.
• The management must observe the internal and external
environment so that it may able to identify the problems
before occurring these problems so that pro-active
approach may be used instead of solving it after
occurrence.
• As the world has become global village, the management
should have latest knowledge and information about the
world because a little change in any corner of the world can
affect your business.
• There should be more decentralization in decision making
process need less time to execute rather than approvals
from even H.O.D.
• An effective coordination and relationship among
departments should be there and exercise as well.
• The management should recruit right person for job and
must avoid favoritism and all other such activities.
RECOMMENDATIONS
PROPER PLANNING

Bank should make a plan to gear up its recovery efforts on war

footing and reorganize the recovery function of global bases. In
addition, bank should tighten up control on expenditure
USE OF COMPUTERS
To save the time of the customers and other clients, bank should
adopt computerized system for book keeping and other filling
systems. It will increase the efficiency of the bank. I know that there
are some branches which are computerized but most of the
branches in various cities of the country are not computerized. So
the bank should mechanize all its branches in the country.
ADOPTION OF ADVERTISING
Bank should launch advertising campaigns through out the year to
promote the habits of savings in the people. Bank should open more
branches in the remote areas of the country to get deposits and idle
resources. Bank should provide similar facilities to all its branches in
big cities. The standard of service and other facilities are far better
as compared to smaller cities.
PROPER GUIDANCE
Bank should adopt such an induction plan that when a customer
opens his account with the bank, he should be supplied with a
booklet which enables him to know the procedure of filling the
cheques and pay-in-slip etc. It will save a lot of time of the bank
staff afterward during of the conduct of the account of that
customer.
DIVISION OF WORK
The billing system of national bank of Pakistan must be improved to
facilitate the customers and workers. The work should be divided

among the staff e.g. collection of bills, countering of cash and then
entry of these.
CHECK ON EXPENDITURES
Expenditures must be controlled which are very high and
unnecessary.
BORROWING AT LOW COST

Deposits must be taken at a lower cost and given at higher interest
rate.
Conclusion

I got a lot of experience from National Bank during my internship.
During Internship I came to know that how different activities take
place in organizations, what are the rules and procedures Followed
in National Bank.
National Bank of Pakistan is one of the leading in the Pakistan’s
Banking industry with almost 1267 plus national and 22 branches in
foreign countries. The Bank is still growing and growing on the way
of the prosperity. The management is highly qualified and
experience in its fields. I had a very great opportunity to work as
internee so as to gain an over view of practical life and working in
industry before entering in practical life. Practical things and
knowledge is very much different from the theory and bookish
knowledge. I had a very great chance to gain practical experience
and to implement my bookish and to very refine theoretical
knowledge in practical things.

Internship Letter

References
1) The first important thing is the discussions with the staff
of the bank especially with the manager of the branch.
2) The Bank Book of Instructions for the National Bank of
Pakistan called the B.B.I.
3) Surfing the website of the National Bank of Pakistan
(www.nbp.com.pk)
4) Reading the Annual Reports of the National Bank of
Pakistan
5) www.google.pk

Complete Report of NBP by Rameez

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NBP

Main Branch, Vehari

This Piece of work is dedicated to my revered parents,

I am also highly thankful to my honorable teachers for

I cannot forget the kindness and cooperation of Mr.

31 NBP Premium Saver 47

44 NBP Pak Rupee Traveller’s Cheque 68

45 Letter of Credit & Commercial Finance 68

46 Foreign Remittance 68-69

48 Short Term Investment 70

49 N.I.D.A & Equity Investment 70

50 Trade Finance and Other Business Loan 71-72

51 Utility Bills & Foreign Currency Account 73

52 Corporate Finance 73-74

55 Cheque at Counter 75-76

56 Cheque Payment Procedure & Issuance of 76

59 Outward Bills For Collection 78

60 NBP Awards & Achievements 79-82

62 Balance Sheet 84-85

63 Profit & Loss Account 86

64 What is Financial Ratio 87

65 RATIO ANALYSIS 88-97

67 SWOT ANALYSIS 99-102

68 RECOMMENDATION & CONCLUSION 103

69 Internship Letter 108

This report highlights the operations and functions of National Bank

The main purpose of the internship is to gather relevant information

The biggest source of information is my personal experience,

them. The annual report 2005, 2006,2007,2008,2009 also helped

The finance is its major strength. The other strength of this it is

National Bank of Pakistan maintains its position as Pakistan’s

timely solutions.Thier competitor are United Bank, MCB Bank, Askari

• What is National Bank of Pakistan?

What is National Bank of

National Bank of Pakistan maintains its position as Pakistan's

WHAT IS A COMMERCIAL BANK?

According to Banking Ordinance

BANKER AND CUSTOMER

Debtor and Creditor

Principal and Agent

Bailer and Bailment Relationship

Pledger and Pledgee

Mortgager and Mortgagee

Executor, Attorney, Guarantor

• History of Banking in Pakistan

• Efforts towards Islamic Banking in Pakistan

HISTORY OF BANKING IN PAKISTAN

At the time of partition, total number of banks in Pakistan were 38

Pakistani banks stood at Rs.880 million whereas the advances were

In 1949, National Bank of Pakistan was established. It started with

1) National Bank of Pakistan

The Pakistan Banking Council prepared banks amalgamation

1. National Bank of Pakistan

4. Muslim Commercial Bank Limited

Efforts Toward Islamic Baking In Pakistan

and Corporate. Islamic Banking is developing policies for new

highest standards of services quality, international best practices

and social responsibility”

• Institutionalization a merit and performance culture

• Creating a distinctive brand identify by providing the highest

• Adopting the best international management practices

• Maximizing stakeholders value

• Discharging our responsibility as a good corporate citizen of