N a m e o f O r g a n i z a t i o n :

S u b m i t t e d B y :
Javed Hussain
MC062000032
S u b m i t t e d o :
Instructor PRO619
V i r t u a l U n i v e r s i t y o f P a k i s t a n
An I n t e r n s h i p Re p o r t
Dedication
! dedi"ated t#is !nterns#i$ %e$ort to
My fami&y members and
'irtua& (niversity of )a*istan
2
Acknowledgement
All praise to Allah, the most merciful, kind and beneficent, and the source of all
knowledge, wisdom within and beyond my comprehension. He is the only God, who
can help us in every field of life. All respect and possible tributes goes to my Holy
Prophet Mohammad !A"#, who is forever guidance and knowledge for all human
beings on this earth.
Heart full thanks for Mr. Muhammad Imran Wahid Principal $P!% $ntellectual Prestige
&omputer !cience &ollege Mailsi PM'!()#, for special arrangement of e*uipments
in computer lab and providing informative books in library. "ithout his co%operation
it was not possible for us to complete my M+A Program.
$ am very grateful to my Project supervisor at ,irtual -niversity of Pakistan. He
guided and helped me through timely suggestions, valuable advices and specially the
sympathetic attitude, which always inspired me for hard work.
$ am proud to say that $ am very grateful to my family whose kind prayers and
cooperation helped us at every step of my work. !pecial thanks go to my parents for
their cooperation for the sake of my knowledge.
$ am really very thankful to C#+ !*ram (&&a# .perational Manager /ational +ank
Main +ranch Mailsi for her cooperative attitude during the completion of my pro0ect
work. He helped and supported me during gathering and analy1ing information. $ am
really very thankful to one of my friend Mr. Mohsin Raza for his cooperative attitude
during the completion of my pro0ect work. He helped and supported us during
gathering and analy1ing information.
2
Executive summary
3o interrupt my skills and educational knowledge of 4inance $ done my internship in
/ational +ank of Pakistan Mailsi +ranch 5istrict ,ehari and to know how $ will work
in financial institutions and among various types of people have different attitude.
3he ob0ective of this $nternship was to e6plore the issues relating to 4inance and to
find out problems regarding the theoretical concepts with practical e6perience
working in an organi1ation during the internship and study the system of /ational
+ank of Pakistan. 3here are many possible improvements, which we can make
positive changes in the system.
3here is shortage of employees in the organi1ation. "ith development of online
banking system the load of work can be decreased. All the staffs do not know about
computer. 3here is almost one or two employees are trained to operate the system in
every branch. 7specially, the cash department is not familiar with computer and
information system.
$t is not easy for it to implement a new system immediately it takes a lot of time to
replace systems. .nce implemented its testing takes more time. !o it is important for
the +ank to develop a research department for redesigning the operations of the +ank.
3he 4inance of the bank is e6perienced but not ade*uate with the changing
environment of financial institutions. $ observed that seniors are illiterate of computer
and not technical hands. /ew comers have more knowledge about business
administration and skilled in information technology. 3o update the skills, it is
suggested to develop human resources training programs and refresher courses.
8
Internshi !erti"icate
9
#a$le o" !ontents
MC062000032 ..................................................................................................... 1
5edication ...................................................................................................................... 2
Acknowledgement ......................................................................................................... 2
76ecutive summary ........................................................................................................ 8
....................................................................................................................................... 8
$nternship &ertificate ...................................................................................................... 9
3able of &ontents ............................................................................................................ :
$ntroduction .................................................................................................................... ;
....................................................................................................................................... ;
.verview of the organi1ation ....................................................................................... )(
.rgani1ational structure ............................................................................................... 2(
/umber of employees ............................................................................................. 22
$nternational 'evel ....................................................................................................... 22
Plan of your internship program ................................................................................... 22
$ntroduction of +ranch ................................................................................................ 22
6iv# $slamic +anking .............................................................................................. 2:
4unctions of the 4inance 5epartment .......................................................................... 2<
Accounting system of the organi1ation ................................................................... 2<
4inance system of the organi1ation ......................................................................... 2<
-se of electronic data in decision%making .............................................................. 2<
Mobili1ation of funds. .............................................................................................. 2=
Generation of funds ................................................................................................. 2=
Allocation of funds .................................................................................................. 2=
&ritical analysis ............................................................................................................ 2=
..................................................................................................................................... 22
!".3 Analysis of the organi1ation ............................................................................. 28
................................................................. 29
........... 29
.pportunities ............................................................................................................ 29
3hreats ...................................................................................................................... 29
&onclusion > recommendations ................................................................................. 2:
?eferences ................................................................................................................... 2;
Anne6es ........................................................................................................................ 2;
..................................................................................................................................... 2<
:
Introduction

N,!ON,- B,N. O/ ),.!S,N
$ncorporated under the /ational +ank of Pakistan .rdinance, )=8=#
/ational +ank of Pakistan the bank# was incorporated in Pakistan under the /ational
+ank of Pakistan .rdinance, )=8= and is listed on all the stock e6changes in Pakistan.
$ts registered and head office is situated at $.$. &hundrigar ?oad, @arachi. 3he bank is
engaged in providing commercial banking and related services in Pakistan and
overseas. 3he bank also handles treasury transactions for the Government of Pakistan
GoP# as an agent to the !tate +ank of Pakistan !+P#. 3he bank operates ),282
2((;A ),222# branches in Pakistan and 22 2((;A )<# overseas branches including
the 76port Processing Bone branch, @arachi#. -nder a 3rust 5eed, the bank also
provides services as trustee to /ational $nvestment 3rust /$3# including safe custody
of securities on behalf of /$3.
/ational +ank of Pakistan maintains its position as PakistanCs premier bank
determined to set higher standards of achievements. $t is the ma0or business partner
for the Government of Pakistan with special emphasis on fostering PakistanCs
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.
3he +ank is providing all banking services of mercantile and commercial banking
permissible in the country, which includesA
D Handling of treasury transactions for the Government of Pakistan as agent to the
!tate +ank of Pakistan.
D Providing services under a 3rust 5eed as 3rustee to the /ational $nvestment 3rust
/$3# including safe custody of securities on behalf of /$3.
D Accepting of deposits of money on current, fi6ed, saving, term deposit and profit
and loss sharing accounts.
D +orrowing money and arranging finance from other banks.
D Advancing and lending money to its clients.
D 4inancing of pro0ects, including technical assistance, pro0ect appraisal through long
;
term short%term loans, term finance and musharika certificates, etc.
D +uying, selling, dealing, including entering into forward contracts of foreign
e6change.
D 4inancing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.
D ?eceiving of bonds, scripEs, valuables, etc. for safe custody.
D &arrying on agency business of any description other than managing agent, on
behalf of clients including Government and local authorities.
D Generating, undertaking, promoting, etc. of issue of shares and, bonds, etc.
D 3ransacting guarantee and indemnity business.
D -ndertaking and e6ecuting trusts.
D Foint venturing with foreign dealers, agents and companies for its representation
abroad.
D Participating in G"orld +ankG and GAsian 5evelopment +ankCsG lines of credit.
D Providing personali1ed Ha00 services to intending Ha00is.
Bran"# Net0or*
Presently the +ank is divided into )( Groups headed by !7,PsH7,Ps. = ?egions
reporting to as many ?egional &hiefs and )9 !ingle +ranch Bones headed by Bonal
&hiefsI )2 &orporate branches and ),298 domestic branches headed by +ranch
Managers control its field operations.
"ith the geographical development of its branches, the +ank has been able to e6tend
its services to a much larger number of Pakistanis all over the country. 3oday it has
more than <.9 million accounts. +ank maintains its presence in all the ma0or financial
centers of the world through its 2)overseas branches and 8 representative offices. .f
these, three representative offices have recently been set up at 3ashkent -1bekistan#,
+aku A1erbai0an# and Almaty @a1akhstan# to take advantage of the emerging
opportunities in &$! countries. +ankEs role globally is well assisted by its network of
correspondent banks located strategically in Asia, America, 7urope and Africa.
Apart from having a vast branch network, +ank is at the forefront in the ac*uisition and
application of new technologies in every aspect of its banking facilities. $t has ac*uired
leased telephone lines for on%line banking. 3he +ank has )2 ?egional &omputer &enters
to cover various on%line and batch system re*uirements of branches and controlling
offices. +ank has also a presence on the $nternet. $t has moderni1ed its services by
installing Automated 3eller Machines A3Ms# called G&A!H '$/@G at selected
branches and presently ); A3Ms are operational in ma0or cities.
Bran"# Net0or*: As of !eptember, 2((;#
)22: 5omestic +ranches, )< .verseas +ranches,
8 ?epresentative .ffices, 9 !ubsidiaries and a Foint ,enture.
Overseas Bran"# Net0or*:
Paris, 4rankfurt, /ew Jork, "ashington 5.&., 3okyo, .saka, Hong @ong, @owloon,
!eoul, +ahrain, 5haka, &hittagong, Ashgabat, +ishkek, +aku, @abul, Falalabad and
@7PB .ffshore +anking -nit
%e$resentative Offi"es:
+ei0ing, 3ashkent, &hicago and 3oronto
Subsidiaries:
&F!& Almaty, @a1akhstan
<
/+P &apital 'td.
/ational +ank Modaraba Management &o.
3aurus !ecurities 'td.
/+P 76change &ompany 'td.
Joint 'enture:
-nited /ational +ank 'td., -@
(Economic Indicators Pakistan, Published by Economic research Wing NP, !ead
"##ice $arachi%
)resent Status of t#e Ban*
3he new management team having e6tensive e6perience of management of large
financial institutions both within and outside the country is e6pected to further
enhance the profitability and operational efficiency of the +ank.
)ros$e"ts
3he +ankCs principal strategic going forward ob0ective is to make the transition from a
public service institution to a modern commercial bank. +eing the countryCs largest
financial institution, the +ank is uni*uely positioned to leverage its large branch
network and its <.9 million%customer base to consolidate its core businesses as well as
develop new revenue generating opportunities.
3he new management team is in place combining the +ankCs e6isting personnel with
professionals recruited from outside. .perating procedures are being re%defined and
internal controls strengthened utili1ing a revamped $3 architecture. A brief on the
progress on some critical areas is as followsA
Cor$orate 1 !nvestment Ban*ing
A new approach to corporate banking is underway. 3he +ank has initiated a structured
approach to corporate banking by introducing a single point of contact through
?elationship Managers ?Ms#. 4or this purpose, new ?Ms as well as team leaders
have been inducted to e6pedite this process. Area Managers will be appointed to
manage relationships and to better service the needs of multinationals and large local
corporates.
$n investment banking team has also been formed to offer speciali1ed services to
ma0or relationships including advisory and debt syndications 34&s#. 4urthermore, to
stem the growth in non%performing loans, the e6isting risk H credit management
practices at the +ank are being revamped.
reasury 2 !nternationa& Ban*ing
3he deregulation of foreign e6change treasury business has ensured that a growing
,olume of business now flows through the inter%bank market where rates are
determined by the market forces. 3his can prove to be an immense profitable
proposition for the +ank.
3owards this ob0ective, the +ank is shifting focusing on e6panding its market share in
trade finance, home remittance and foreign investment related fore6%denominated
flows.
=
Overview o" the organi%ation
'ision
3o be recogni1ed as a leader and a brand synonymous
with trust, highest standards of service *uality,
international best practices and social responsibility.
Mission
/+P will aspire to the values that make /+P truly the /ationEs +ank, by A
$nstitutionali1ing a merit and performance culture.
&reating a distinctive brand identity by providing the highest standards
of services.
Adopting the best international management practices.
Ma6imi1ing stakeholderEs value.
5ischarging our responsibility as a good corporate citi1en of Pakistan and in
countries where we operate.
Core 'a&ues
Highest standards of $ntegrity.
$nstitutionali1ing teamwork and performance culture.
76cellence in service.
Advancement of skills for tomorrowEs challenges.
Awareness of social and community responsibility.
,alue creation for all stakeholders.
)(
Brief History
/ational +ank of Pakistan was established on /ovember =, )=8= under the /ational
+ank of Pakistan .rdinance, )=8= in order to cope with the crisis conditions, which
were developed after trade deadlock with $ndia and devaluation of $ndian ?upee
in)=8=. $nitially the +ank was established with the ob0ective to e6tend credit to the
agriculture sector. 3he normal procedure of establishing a banking company under the
&ompanies 'aw was set aside and the +ank was established through the promulgation
of an .rdinance due to the crisis situation that had developed with regard to financing
of 0ute trade. 3he +ank commenced its operations from /ovember 2(, )=8= at si6
important 0ute centers in the then 7ast Pakistan and directed its resources in financing
of 0ute crop. 3he +ankEs @arachi and 'ahore offices were subse*uently opened in
5ecember )=8=.
3he nature of responsibilities of the +ank is different and uni*ue from other
banksHfinancial institutions. 3he +ank acts as the agent to the !tate +ank of Pakistan
for handling ProvincialH4ederal Government ?eceipts and Payments on their behalf.
3he +ank has also played an important role in financing the countryEs growing trade,
which has e6panded through the years as diversification took place. 3oday the +ank
finances importHe6port business to the tune of ?s. 92.; billion, whereas in )=:(
financing under this head was only ?s. ).98 billion.
3he +ank has also played an important role in financing the countryEs growing trade,
which has e6panded through the years as diversification took place.
/ational +ank of Pakistan maintains its position as PakistanCs premier bank
determined to set higher standards of achievements. $t is the ma0or business partner
for the Government of Pakistan with special emphasis on fostering PakistanCs
economic growth through aggressive and balanced lending policies, technologically
oriented products and services offered through its large network of branches locally
and internationally and representative offices.
Ban* of t#e 3ear 2004A awarded for the year 2(() by the world renown K3he +ankerL
maga1ine owned by the 4inancial 3imes Group, 'ondon.
Ban* of t#e 3ear 2002A awarded for the year 2((2 by the world renown K3he +ankerL
maga1ine owned by the 4inancial 3imes Group, 'ondon.
#e Best in t#e 5merging Mar*etsA "orldEs leading financial 0ournal, KGlobal
4inanceL after a worldwide survey declared /+P in its issue of May 2((2 as one of the
+est in the 7merging Markets.
3he K+ankers Maga1ineL in Fuly 2((2 recogni1ed /+P as the bank with the highest
return on capital in Asia and /o.< in the world.
$n its issue of March 2((8, KGlobal 4inanceL has also declared /+P as K3he +est
4oreign 76change +ankL in Pakistan.
$n May 2((8, /+PEs standard long%term rating was upgraded by F&?%,$! &redit ?ating
Agency to AAdouble A# from AA% double A minus# with Kstable outlookL while
standalone short%term rating was maintained at A%)M A one plus#. 3his is now the best
rating for a local commercial bank in Pakistan.
"7+&.P%AA!HA, an alliance against gender discrimination at workplace, presented a
?ecognition Award to /+P on 5ecember )<, 2((8 for having a Gender !ensitive
Management.
+ank of the JearL award for the year 2((8 by the world renowned K3he +ankerL
))
maga1ine owned by the 4inancial 3imes Group, 'ondon.
K7uromonyL Maga1ine, a leading and prestigious 0ournal, published from 'ondon, -@,
in its issue of March 2((9 has published MoodyEs $nvestors !ervice rankings in which
/+P in the only Pakistani bank which has been ranked among the 3op )(( banks of
Asia for it performance in the fiscal year 2((2.
"orldEs leading financial 0ournal, KGlobal 4inanceL in an e6clusive survey has named
/+P as the +est 7merging Market +ank from Pakistan for the year 2((9.
.n an all Pakistan basis /+P was awarded the K@isan 3imes AwardL for the year 2((9
by the Prime Minister of Pakistan Mr. !haukat A1i1, fir its services in the Agriculture
!ector.
+ank of the yearL awarded for the year 2((9 by the world%renowned K3he +ankerL
maga1ine owned by the 4inancial 3imes Group, 'ondon.
3he K+anker Maga1ineL in Fuly 2((9 recogni1ed /+P as the )(
th
+est +ank in terms of
NProfit on &apitalE in the world.
.n the basis of overall financial performance during 2((8, /+P has been listed
KAmongst top )((( banks in the worldL and K/umber ) +ank in PakistanL by the
prestigious K+anker maga1ineL in its issue of Fuly 2((9.
3he Asian +anker, a reputable financial 0ournal, has published the report of its research
pro0ect on the ranking of 2(( of AsiaEs !trongest banks based on a ))%5imensional
5ynamic !coring &riteria has ad0udged /ational +ank of Pakistan as the !trongest
+ank in Pakistan.
K+est +ank%PakistanL award for the year 2((9 by worldEs leading financial 0ournal
KGlobal 4inanceL.
+est 4oreign 76change +ank% PakistanL award for the year 2((9 by worldEs leading
financial 0ournal KGlobal 4inanceL.
5ue to consistent improvement in /+P,s &ore Profitability, Asset Ouality and 7conomic
&apitali1ation in recent years, MoodyEs $nvestors service upgraded the 4inancial
!trength ?ating 4!?# romM to 5%, in /ovember 2((9.
+est 4oreign 76change +ank%PakistanL award for the year 2((: by worldEs leading
financial 0ournal KGlobal 4inanceL.
"orldEs leading financial 0ournal, KGlobal 4inanceL has named /+P as the +est
7merging Market +ank from Pakistan for the year 2((:.
+est return on &apital for 2((: amongst all banks in Asia K+anker maga1ineL in Fuly
2((;.
!table AAAHA%)M 3ipple AHA%.ne Plus# rating !tandalone +asis# by F&?%,$! Fuly
2((;#.
"orldEs +est 4oreign 76change +ank 2((<L awarded by worldEs leading financial
0ournal Global financeL.
)2
Nature of t#e Organization
/ational +ank of Pakistan is a Governmental .rgani1ation. $t is functioning as an
agent of !tate +ank of Pakistan. $t implements the policies of !+P. $ts basic ob0ective
was to e6tend credit to the agriculture sector. $t is the ma0or business partner for the
Government of Pakistan with special emphasis on fostering PakistanCs economic
growth through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches. $t deals all Govt
?evenue, collection and payments of salaries, pensions and Govt 3reasury. $t is a
complete commercial, retail and corporate bank as well.
/ational +ank of Pakistan is naturally a 4inancial .rgani1ation, which deals with
lending, and borrowing and investing activities.
3he /ational +ank of Pakistan a commercial bank generally makes advances for a
period not e6ceeding one year, e6cept in case of small and medium industries for
which advance may be made for a ma6imum period of five years. 3he bank makes not
only against the security of stocks and goods hypothecated or pledged to the bank, but
also against documents of goods and properly, shares are various 0oint stock
companies, Government securities, $nsurance policies deposits receipts, etc. 3he
margin, and rate of interest are determined by several factors including the type of
security the si1e of loan and the integrity of the party.
3he nature of responsibilities of the +ank is different and uni*ue from other
+anksHfinancial institutions. 3he +ank acts as the agent to the !tate +ank of Pakistan
for handling ProvincialH4ederal Government ?eceipts and Payments on their behalf.
3he +ank has also played an important role in financing the countryEs growing trade,
which has e6panded through the years as diversification took place.
/ational +ank of Pakistan maintains its position as PakistanCs premier bank
determined to set higher standards of achievements. $t is the ma0or business partner
for the Government of Pakistan with special emphasis on fostering PakistanCs
economic growth through aggressive and balanced lending policies, technologically
oriented products and services offered through its large network of branches locally
and internationally and representative offices.
Business 'o&ume
/ational +ank of PakistanEs business volume is e6panding day by day and now it becomes
largest bank of the country.
6%s+ !n Mi&&ions7
2003 2008 2009 2006 200:
3otal Assets 8:<,=;2 992,22) 9;;,;)= :29,)22 ;:2,)=8
5eposits 2=9,8=2 8:9,9;2 8:2,82; 9(),<;2 9=),=(;
$nvestment )::,)=: )88,;2: )9:,=<: )2=,=8; 2)(,;<<
$nterest 7arned )=,892 2(,=8; 22,:28 88,()8 9(,9:=
Advances ):),2:: 22(,;=8 2:<,<2= 2):,))( 28(,:;;
!hare HolderEs 7*uity )<,)28 28,=(( 2:,)9< 92,(89 :=,2;)
Pre%3a6 Profit =,((= )),=;< )=,(9: 2:,2)) 2<,(:)
After%3a6 Profit 8,)=< :,)=9 )2,;(= );,299 )=,(28
7arning Per !hare ?s.# <.92 )(.8< );.=2 28.() 22.28
?eturn on Assets
Per%3a6 Profit#
2.(P 2.8P 2.8P 8.2P 8.)P
/umber of +ranches ),)== ),22: ),282 ),29( ),298
)2
)rodu"t -ines
/ational +ank of Pakistan serving following product linesA
Nationa& Ban* of )a*istan Saiban S"#eme
/ational +ank of Pakistan lending for construction of home
to general public as well as employees of government and
non%government institutions. Main features of this scheme are as under.
4inance available for home purchase, home construction, home improvement
and +alance 3ransfer 4acility.
Period of repayment ranges between 2(%2( years.
'oan available up to a ma6imum of ?s. )9%2( million.
/+P provide markup choices to its consumer i.e. ,ariable 5iscount ?ate,
4i6ed ?ate.
Minimum approval and disbursement timing.
'imited to areas where there are no documentations, fee, resale and
foreclosure related issues, so to protect the bankEs interest.
NB) ,dvan"e Sa&ary S"#eme
/ational +ank of Pakistan facilitates to employees with
advance salary under certain conditions.
/+P facilities to employee by 2( Months salaries in advance.
Minimum documents re*uired for advance salaries scheme.
Advance salaries are repayable in :( months installments.
/+P impose no processing charges, no collaterals and no insurance on
advance salaries.
/+P charged mark%up at )< percent per annum on reducing balance method.
)8
Nationa& Ban* Cas# ;o&d S"#eme
/ational +ank provides facility of ?s. )(((( against )( gms of gold.
/o ma6imum limit of cash.
?oll over facility.
Mark%up )8.9( percent per annum.
?epayable after one year.
/o penalty for early repayment.
Nationa& Ban* .isan <ost S"#eme
/ational +ank of Pakistan lending in agricultural field.
/ational +ank of Pakistan lending farmers for development of agriculture sector of
the country under certain terms and conditions.
/+P provide loan to farmers for production, development purposes, for
purchase of tractors, for installation of tube wells, for purchase of agricultural
instruments, micro loan, for construction of godwon, for construction of fish
pond, for development of livestock and farming, for mil processing, for cold
storage, bio%gas plants.
/+P charged interest Q )8.9 percent per annum.
/+P lending at farmerEs doorsteps.
/+P facilitates to farmers with agricultural e6perts.
/+P provide loans against agricultural passbooks, gold ornaments and paper
securities.
Nationa& Ban* )remium ,amdani Certifi"ate S"#eme
A monthly income scheme introduced by /ational
+ank of Pakistan for investors as well as for general public.
Minimum investment re*uired ?s. 9(,(((H%
Ma6imum investment allowed ?s. 9,((,(((H%
A 9 years scheme with year wise increasing profit rates.
$ncentives available for investors.
/+P provide finance facility against these certificates.
/+P allowed to customers to convert e6isting deposits into
/ational +ank Premium Aamdani &ertificates.
NB) .arobar S"#eme
/ational +ank of Pakistan providing financing under President
@arobar !cheme. 3he purpose of this scheme to reduce unemployment from the
country. Main features are as under.
Age limit is )<%89 years.
4inance limit to ?s. 2((,(((H%.
3enure of this loan )%9 years.
Markup rates are variable. i.e. @$+.? M2P per annum. 3he customers will
pay :P as long as government provides the balance markup to /+P on
monthly basis.
/+PE! loan available forA -tility !tore, Mobile General !tore, 3ransport,
P&.H3ele%centers.
)9
International &aking
/ational +ank of Pakistan is at the forefront of international banking in Pakistan
which is proven by the fact that /+P has its branches in all of the ma0or financial
capitals of the world. Additionally, we have recently set up the 4inancial $nstitution
"ing, which is placed under the ?isk Management Group. 3he role of the 4inancial
$nstitution "ing isA %
3o effectively manage /+PEs e6posure to foreign and domestic correspondence
Manage the monetary aspect of /+PEs relationship with the correspondents to support
trade, treasury and other key business areas, thereby contributing to the bankEs
profitability. Generation of incremental trade%finance business and revenues.
/+P offersA
3he lowest rates on e6ports and other international banking products. Access to
different. local commercial banks in international banking.
DEMAND DRAFTS:
$f you are looking for a safe, speedy and reliable way to transfer money, you can now
purchase /+PEs 5emand 5rafts at very reasonable rates. Any person whether an
account holder of the bank or not, can purchase a 5emand 5raft from a bank branch.
MAIL TRANSFERS:
Move your money safely and *uickly using /+P Mail 3ransfer service. And we also
offer the most competitive rates in the market.
PAY ORDER:
/+P provides another reason to transfer your money using our facilities. .ur pay orders are a
secure and easy way to move your money from one place to another. And, as usual, our
charges for this service are e6tremely competitive.
TRAVELER'S CHEQUES:
/egotiabilityA Pak ?upees 3ravelerEs &he*ues are a negotiable instrument.
,alidityA 3here is no restriction on the period of validity.
AvailabilityA At ;(( branches of /+P all over the country.
7ncashmentA At all 8(( branches of /+P.
'imitationA /o limit on purchase.
!afetyA /+P 3ravelerEs &he*ues are the safest way to carry our money.
LETTER OF CREDIT:
/+P is committed to offering its business customers the widest range of options in the
area of money transfer. $f you are a commercial enterprise then our 'etter of &redit
service is 0ust what you are looking for. "ith competitive rates, security, and ease of
transaction, /+P 'etters of &redit are the best way to do your business transactions.
):
COMMERCIAL FINANCE:
'et us help make your dreams become a reality. .ur dedicated team of professionals
truly understands the needs of professionals, agriculturists, large and small business
and other segments of the economy. 3hey are the customerEs best resource in making
/+PEs products and services work for them.
FOREIN REMITTANCES:
3o facilitate its customers in the area of Home ?emittances, /ational +ank of
Pakistan has taken a number of measures toA
$ncrease home remittances through the banking system. Meet the !+P
directivesHinstructions for timely and prompt delivery of remittances to the
beneficiaries
Ne0 /eaturesA
3he e6isting system of home remittances has been revisedHsignificantly improved and
well%trained field functionaries are posted to provide efficient and reliable home
remittance services to nonresident Pakistanis at )9 overseas branches of the +ank
besides -nited /ational +ank the 0oint venture between /+P and -+' in -@#., and
+ank Al%Fa1ira, !audi Arabia. Bero 3ariffA /+P is providing home remittance services
without any charges. !trict monitoring of the system is done to ensure the highest
possible security.
!pecial courier services are hired for e6peditious delivery of home remittances to the
beneficiaries.
S!IFT SYSTEM:
3he !"$43 system !ociety for "orldwide $nter bank 4inancial 3elecommunication#
has been introduced for speedy services in the area of home remittances. 3he system
has built%in features of computeri1ed test keys, which eliminates the manual
application of tests that often cause delay in the payment of home remittances.
3he !"$43 &enter is operational at /ational +ank of Pakistan with a universal access
number N"P#P$$A. All /+P overseas branches and overseas correspondents over
89(# are drawing remittances through !"$43.
-sing the /+P network of branches, you can safely and speedily transfer money for
our business and personal needs.
TRADE FINANCES OTHER "USINESS LOANS:
ARICULTURAL FINANCE:
/+P provides Agricultural 4inance to solidify faith, commitment and pride of farmers
who produce some of the best agricultural products in the "orld.
Agricultural 4inance !ervicesA
);
K$ 4eed the "orldL program, a new product, is introduced by /+P with the aim to
help farmers ma6imi1e the per acre production with minimum of re*uired input.
!elect farms will be made role models for other farms and farmers to follow, thus
helping farmers across Pakistan to increase production.
,gri"u&tura& CreditA
3he agricultural financing strategy of /+P is aimed at three main ob0ectivesA%
Providing reliable infrastructure for agricultural customers
Help farmers utili1e 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 &redit Medium 3erm#A
)rodu"tion and deve&o$mentA
"atercourse improvement
"ells
4arm power
5evelopment loans for tea plantation
4encing
!olar energy
7*uipment for sprinklers
/arm Credit:
/+P also provides the following subsidi1ed with ranges of 2 months to ) year on a
renewal basis.
.perating loans
'and improvement loans
7*uipment loans for purchase of tractors, farm implements or any other e*uipment
'ivestock loans for the purchase, care, and feeding of livestock

)rodu"tion -oansA
Production loans are meant for basic inputs of the farm and are short term in nature.
!eeds, fertili1ers, sprayers, etc are all covered under this scheme.
$f you re*uire any further information, please do not hesitate to e%mail us.
CORPORATE FINANCE:
=or*ing Ca$ita& and S#ort erm -oansA
/+P speciali1es in providing Pro0ect 4inance R 76port ?efinance to e6porters R Pre%
shipment and Post%shipment financing to e6porters R ?unning finance R &ash 4inance
R !mall 4inance R 5iscounting > +ills Purchased R 76port +ills Purchased H Pre%
shipment H Post !hipment Agricultural Production 'oans
Medium term loans and &apital 76penditure 4inancingA
/+P provides financing for its clientsE capital e6penditure and other long%term
investment needs. +y sharing the risk associated with such long%term investments,
)<
/+P e6pedites clientsE attempt to upgrade and e6pand their operation thereby making
possible the fulfillment of our clientsE vision. 3his type of long term financing proves
the bankEs belief in its clientCs capabilities, and its commitment to the country.
'oan !tructuring and !yndicationA
/ational +ankEs leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. +ecause we
understand our syndicate partnersE 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. .ur syndication capabilities are complemented by our own capital strength
and by industry teams, who bring speciali1ed knowledge to the structure of a
transaction.
Cas# Management Servi"esA
"ith /ational +ankEs &ash Management !ervices in process of being set up#, the
customerEs sales collection will be channeled through vast network of /+P branched
spread across the country. 3his will enable the customer to manage their companyEs
total financial position right from your desktop computer. 3hey will also be able to
take advantage of our outstanding range of payment, e0ection, li*uidity and
investment services. $n fact, with /+P, youEll be provided everything, which takes to
manage your cash flow more accurately.
SHORT TERM INVESTMENTS:
/+P now offers e6cellent rates of profit on all itEs short term investment accounts. "hether
you are looking to invest for 2 months or ) year, /+PEs rates of profit are e6tremely
attractive, along with the security and service only /+P can provide.
EQUITY INVESTMENTS:
/+P has accelerated its activities in the stock market to improve its economic base
and restore investor confidence. 3he bank is now regarded as the most active and
dominant player in the development of the stock market. /+P is involved in the
followingA
$nvestment into the capital market
$ntroduction of capital market accounts under process#
/+PEs involvement in capital markets is e6pected to increase its earnings, which
would result in better returns offered to account holders.

)=
Com$etitors
&ompetitors of /ational +ank of Pakistan are all scheduled banks, which are
listedHtrading under +anking &ompanies .rdinance )=:2.
&ompetitive +anks are as underA
Habib +ank 'imited
-nited +ank 'imited
Muslim &ommercial +ank 'imited
Allied +ank 'imited
Askari &ommercial +ank 'imited
!oneri +ank 'imited
+ank Al%Habib 'imited
+ank Al%4alah 'imited.
!tandard &hartered +ank 'imited > 3he +ank of Pun0ab
Organi%ational structure
.rgani1ational Hierarchy &hart

2(
P?7!$57/3
5$?7&3.?! H !7,P!
Provisional &hiefs H 7,P
?egional &hiefs H 7,P
Bonal &hiefs H !,P
,oice President
Assistant ,oice President
.fficer Grad $, $$, $$$
&lerical H /on%&lerical !taff
Syed ,&i %aza
)resident 1 C#airman

!ikandar Hayat Famal A1am 4aroo*ue Mian @ausar Hameed $brar A. Mumta1
5irector 5irector 5irector 5irector

3ari* @irmani M. Arshad &h. M.Ayub @han 3arin Akhla*ue Ahmad
5irector 5irector 5irector 5irector
2)
S$an of Contro&
!pan of control is the number of subordinates who report directly to a specific
manager.
3here are three types of branch categories i.e. $, $$, > $$$ in /ational +ank of Pakistan.
Category ! Bran"#esA 4our employees report to their branch manager.
Category !! Bran"#esA 7leven employees report to their branch manager.
Category !!! Bran"#esA 4ifteen employees report to their branch manager.
At branches level there is broader span of control but due to tall structure of the
organi1ation we find narrow span of control in the bank.
Number of em$&oyees
Description 2002 2003 2004 2005 2006 2007
Total Employees 12195 13272 13745 13824 14019 15019
Main Offi"es
,udit Committee
&hairman A1am 4aru*ue
$brar A. Mumta1
Mian @ausar Hameed
,uditors
&hartered Accountants 4ord ?hodes !idat Hyder > &o.
&hartered Accountants M. Jousaf Adil !aleem > &o.
-ega& ,dvisors
Advocates > 'egal &onsultants Mandviwala > Bafar
%egistered 1 Head Offi"e
/+P +uilding
$.$. &hundrigar ?oad, @arachi
Pakistan
%egistrars 1 S#are %egistration Offi"e
3H@ Associates Pvt.# 'imited
!hares 5epartment, Ground 4loor,
Modern Motors House,
+eaumont ?oad,
@arachi, Pakistan
22
"ebsite
www.nbp.com.pk
Branches
Nationa& -eve&
Description 2002 2003 2004 2005 2006
Total Branches 1204 1199 1226 1242 1250
International 'evel
15 Branches
Plan o" your internshi rogram
!ntrodu"tion of Bran"#
/ame of +ranch /ational +ank of Pakistan,
Main +ranch Mailsi 5istt.,ehari.
+ranch &ode (8=;
?egion Multan
?egion &ode (<
Address Ouaid%e%A1am ?oad Mailsi
3ehsil Mailsi 5istrict ,ehari.
Phone /o. (:;%8)(2)<, (:;%8))=)<
4a6 /o. (:;%8)(2)<
/ame of Manager ?ana Muhammad Anwer
/ame of My !upervisor &h. $kram -llah
/umber of employees )2
Starting and ending dates of interns#i$
!tarting 5ate 29%)2%2((;
7nding 5ate 28.(2.2((<.
22
<e$artments of raining
5uring the internship period of < weeks $ got training in various departments in the
branch. A brief introduction of these departments is as underA
5eposit of &urrent and P'! !aving Accounts > Account .pening 2 "eeks#
?emittances and +ills 2 "eeks#
Govt. Payments and ?eceipts 2 "eeks#
Advances 2 "eeks#
Training program
!ntrodu"tion of a&& t#e de$artments
3here are many different departments in /ational +ank of PakistanA
i7 <e$osit
&ustomers keep their savings in P'! !aving Accounts and businessmen save their
money in bank &urrent Accounts. /+P gives profit on saving accounts and special
saving accounts i.e. Premium !aving Accounts and /+P Premium Amadni
&ertificates for one to five yearEs period.
ii7 ,dvan"es 6Credit de$artment7
/+P give loans to the borrowers for different purposes. 3hese loans are given for
various sectors for different periods. !mall 4inance, &ash 4inance, Agriculture
4inance, &ash > Gold 'oan, Personal 'oans, 5emand 4inance, ?unning 4inance,
&orporate 4inance, 76port $mport 4inancing, House +uilding 4inance !aiban# and
/+P @arobar !cheme etc.
iii7 ;overnment )ayments
/ational +ank of Pakistan is functioning as an agent of !+P. All types of Government
Payment i.e. Pension, !alaries, Grants, Bakat, +enevolent 4und, 3reasury ?efund and
3a6es ?efund proceed through the bank.
iv7 ;overnment %e"ei$ts
$n this department all types of Government receipts i.e. ?evenues, 3a6es, Abyana,
Agriculture 3a6, Government 4ees, 7.+$ 4unds and -tility +ills are deposited. 3his
way /+P is serving great 0ob of revenue collection.
28
v7 %emittan"es
Another important department in the bank is remittances. People send their money to
the other persons and organi1ations through various way i.e. +ank draft, 3elegraphic
3ransfer, Mail 3ransfer, &oupons, Govt. 5raft and "estern -nion Money 3ransfer
etc. $t works both inward and outward.
vi7 Bi&&s
&ustomers collect their moneyHamount through bills. 3hey present their che*ues,
drafts and other bills for collection within the city and out of the city through mail.
/ow a days .nline +anking is becoming more popular for this purpose but the branch
where $ got training is still not have this facility.
vii7 Cas# <e$artment
/ational bank deals Government treasury on behalf of !tate +ank of Pakistan. 3here
are &hest, !ub%chest and /on%chest branches in the bank. !+P supplies currency
notes to the bank and monitors its cash flow. &ash $n charge and other cashiers deal
with cash receipt and payment in the bank.
viii7 Com$&ian"e
?ole of branch compliance department is to reconcile the prescribed fre*uencies,
investigate long pending reconciliation item, and ensure correct treatment every half%
year and clearing system service branch%in ma0or cities. $nternal control is the
integration of the activities, plans, attitudes, policies and efforts of the people of the
bank working together to provide reasonable assurance that the organi1ation will
achieve its ob0ectives and mission.
i>7 ,gri"u&ture <e$artment
Agriculture &redit 5epartment is playing a vital role in development the economy of
Pakistan. &ommercial banks being the greatest mobili1er of savings in the country
with their large network of branches play important role in financing agriculture. 3he
/ational +ank of Pakistan has also been trying to ensure that loans are disbursed to
genuine agriculturists within a reasonable time and that the bank turns down no viable
loan re*uest.
i>7 Human %esour"es Management
Human ?esources Management 5epartment works for the betterment of the
employees. 7nhances skills, training management, service benefits, wages, medical
facilities, staff loans are basic functions of this department.
>7 !nformation e"#no&ogy <e$artment
+ankEs data collection and information system run by ?egional 5ata &ollection
&enter. 3his department manages staff training programs regarding computer.
29
>i7 On&ine Ban*ing
3his department is functioning only in online branches in the bank. 3his is a fast track
banking system in modern banking. /+P is also trying to enhance this facility for
their customers.
>i7 %etai& 1 Commer"ia&
3his is the department that boosts the profitability of the bank. /ational +ank
becomes the largest profit%earning bank of the country by introducing personal loans
i.e. /+P Advance !alary !cheme and !aiban !cheme.
>ii7 /B% Co&&e"tion <e$artment
/+P is playing great role for collection of 4+? &+?# ta6esHrevenue. A separate
counter is established at branch level to facilitate the ta6payers.
>iv7 !s&ami" Ban*ing
3he year 2((; marked the first year of $slamic banking operations. 5uring the
year under review, in addition to active participation in various !ukuk transactions,
two more $slamic banking branches at 'ahore and Peshawar started operations.
/+PEs plans for the year 2((< include opening of 4aisalabad and ?awalpindi branches
with the focus on growing organically by opening more standalone $slamic banking
branches, utili1ing /+PEs e6isting branch network of ),2(( plus conventional
branches and looking into strategic ac*uisitions for e6pansion in this field
<etai& of t#e <e$artments ! =or*ed !n
i7 <e$osit of Current and )-S Saving ,""ounts 1 ,""ount O$ening:
All banks depend on deposits. $t is a very important department where customers
deposit and withdrawal their money. +anks use this money for loaning on higher rate
to earn profit.
Account opening is also very vital now a days in banking system due to @J& @now
your customer# , AM' Anti Money 'aundering# and A34 Anti terrorist financing#
because A/' has become a global problem and all the countries of the world are
vulnerable to it.
$ got training in this department for two weeks and after understand the basic concept
$ practically opened account of walk%in%customers.
ii7 %emittan"es and Bi&&s
2:
Another important department in the bank is remittances and +ills for &ollection.
People send their money to the other persons and organi1ations through various way
i.e. +ank draft, 3elegraphic 3ransfer, Mail 3ransfer, &oupons, Govt. 5raft and
"estern -nion Money 3ransfer etc. $t works both inward and outward.
&ustomers collect their moneyHamount through bills. 3hey present their che*ues,
drafts and other bills for collection within the city and out of the city through mail.
/ow a days .nline +anking is becoming more popular for this purpose but the branch
where $ got training is still not have this facility.
iii7 ;overnment re"ei$t and )ayment
$n this department all types of Government receipts i.e. ?evenues, 3a6es, Abyana,
Agriculture 3a6, Government 4ees, 7.+$ 4unds and -tility +ills are deposited. 3his
way /+P is serving great 0ob of revenue collection.
Another important department in the bank is remittances. People send their money to
the other persons and organi1ations through various way i.e. +ank draft, 3elegraphic
3ransfer, Mail 3ransfer, &oupons, Govt. 5raft and "estern -nion Money 3ransfer
etc. $t works both inward and outward.
iv7 Credit <e$artment
/+P give loans to the borrowers for different purposes. 3hese loans are given for
various sectors for different periods. !mall 4inance, &ash 4inance, Agriculture
4inance, &ash > Gold 'oan, Personal 'oans, 5emand 4inance, ?unning 4inance,
&orporate 4inance, 76port $mport 4inancing, House +uilding 4inance !aiban# and
/+P @arobar !cheme etc. 3he /ational +ank of Pakistan has also been trying to
ensure that loans are disbursed to genuine agriculturists within a reasonable time and
that the bank turns down no viable loan re*uest.
?etail and &ommercial wing enhanced the profitability of the bank. /ational +ank
became the largest profit%earning bank of the country by introducing personal loans
i.e. /+P Advance !alary !cheme and !aiban !cheme.
2;
Stru"ture of /inan"e <e$artment
<e$artment Hierar"#y
Numbers of 5m$&oyee
3otal /o. of 7mployees are (2 in 4inance 5epartment
/inan"e and ,""ounting O$erations
4inance and Accounting operations are operated with the help of
subordinate staff. +ank is financing in multiple sectors.
/un"tions of t#e /inan"e <e$artment
4inance 5epartment performs following functions.
+orrowing from !tate +ank of Pakistan.
'ending to &ommercial +anks
'ending to $nvestors.
'ending to General Public for multi%business.
,""ounting system of t#e organization
Accounting system of the bank especially where $ done internship is very bad due to
non%availability of $nformation 3echnology trained staff which is most re*uirement of
the bank. +ank use manually accounting system during its operational activities.
/inan"e system of t#e organization
4inancial system of the bank where $ done my internship is mi6ed and complicated
because being government bank, bank deals with all kind of lending and investing
activities and also hold down the cash position of others financial institutions i.e. banks
like M&+, -+', A+' etc.
(se of e&e"troni" data in de"ision?ma*ing
3here is lack of use of electronic data in decision making being a operational branch of
the bank all the decisions make by higher offices i.e. ?egional .ffice or Head .ffice and
this branch only act upon on the order received from high command.
2<
4inance 5irector
Accounts .fficer
Assistant Accounts .fficer
Mobi&ization of funds+
3he branch where $ have got training, is mobili1ing his fund through lending or
receiving only. +ranch provides various kind of lending facilities all kind of as stated
above in product line.
;eneration of funds
4und generation of the branch is depositing, receiving interest on lending money to
various sectors, advances from other financial institutions.
Sour"es of funds
4und generation of the branch is depositing, receiving interest on lending money to
various sectors, advances from other financial institutions.
,&&o"ation of funds
+ank allocates funds according to the instructions of the high command.
!ritical analysis
/inan"ia& ,na&ysis
Pre ta6 profit stood at ?s. )2,:;8 million from ?s. )8,((2 million of corresponding
period of last year, a reduction of =.9P. +ankEs operating performance have been
*uite impressive, operating revenue increased by 2(P from ?s. 2(2;: million to
?s.2:,8=; million, while pre provision profit increased by ?s. 8,2=2 million an
increase of 2).8P. 5iluted earning per share declined to ?s. <.;= from ?s. )(.(9
during the same period of last year. Pre ta6 return on e*uity stands at 29.<P whereas
Pre ta6 return on assets is at 2.2P. &ost to income ratio of the bank remained in the
top tier at (.22
/et interest margin registered an impressive growth of ?s. 2,:;( million or ):.8P
mainly due to growth in volumes. /et advances increased by ?s. 8) billion and ?s. 22
billion as compared to corresponding period of last year and year end 2((;. 3he
growth in advances mainly emanated from corporate and commodity financing.
5eposits show impressive growth of ?s. :< billion or )2.2P over corresponding
period last year. &ompared to year end 5ecember 2((; the deposits have increased by
?s. 2= billion or 9P mainly due to our marketing efforts and the trust that customers
have in /+P.
/on interest base income has shown an impressive increase of ?s. 2.8 billion or <8P
over corresponding period due to higher commission, e6change income and a one off
receipt of ?s. =;;.< million as compensation for delayed ta6 refunds. 3he
compensation on delayed refunds pertains to various assessment years from )==)%=2
to 2(()%(2.
Administrative e6penses show a rise of ?s. ),<2< million or 2;P compare to
corresponding period mainly due to inflation and salary increases. Going forward we
e6pect that with the technological H human resource up gradation program our costs
2=
will rise in short term however we need to invest today for better returns in the future.
Provision charge against advances for the corresponding period last year includes a#
one off items of ?s. ).8billion on account of one large cash recovery and reversal in
general provision of ?s. <29 million due to reduction in provision re*uirement on
advance salary from 9P to 2P. $f we e6clude these one offs the provision charge last
year comes to ?s. ).< billion. 4urther b# last year the !+P changed its prudential
regulations and withdrew the benefit of 4orced !ales ,alue in the third *uarter of last
year, therefore this year the banks can no longer take the benefit of forced sales value
of the collateral securities. 3he additional provision charge on account of withdrawal
of 4!, impact last year was ?s. 2.) billion, which was made in the 2rd and 8th
*uarter of last year. 3his benefit of ?s 2.) billion was being carried in the first half of
2((;. 3herefore the comparison between the provisions for the two periods should
take into account both these factors. Additionally the bank is making all out efforts for
recovery of non%performing loans and aggressive targets have been assigned to the
units.
"e e6tend our appreciation to the bankEs staff for their commitment, dedication and
hard work in achieving these e6cellent results. "e would like to e6press our
appreciation to our stakeholders, regulators and our valued customers for their support
and continued confidence in /+P.
.n behalf of +oard of 5irectors
!. Ali ?a1a
C#airman 1 )resident
5ateA August 29, 2((<
.thers $ssue
5uring the internship $ got practical e6perience that does not meet the theoretical
concepts in M+A Program. $ present here some critical analysisA
'ong Process of 3ransactionA 3here are long processes for making a transaction in the
+ank. 7specially, during the salary days of Government employees, a customer needs
one or two hours to withdrawal hisHher che*ue.
3rainingA /+P has no great facility for their employees for training of new
technologies. 3his situation creates difficulty for handling new challenge.
5epartmentali1ationA $ hardly saw any separate department in the branch where $ have
got internship accept cash department. An employee deals various nature of work.
!taff AttitudeA 5ue to heavy load of work staff attitude does not ideal for an
organi1ation where public dealing is at large scale.
"ork 7nvironmentA "ork environment was not ideal due to heavy customers visit in a
single day. 4urniture, temperature, light and sitting arrangement was not good for
customers and bank employees.
Professional ApproachA "ork speciali1ation and 0ob specification are found very low
in bankEs employees. +usiness administration *ualities and education is at low side.
!hortage of !taffA 3here is shortage of staff in the +ank. /umber of customer per
employee is very high. &ash department is suffering very badly and facing great deal
of over workload.
'ess use of 3echnologiesA !taff hesitate to use new technologies. 7ven old employees
are not able to operate P&s.
2(
&ommunication GapA $ feel that there is communication gap between top management
and workers. 3hey have fewer chances to communicate effectively.
/ot 4ocusing on Mission and .b0ectivesA 7mployees 0ust work and work hard as a
routine. 3hey do not know what is the mission ahead and their ob0ectives are also not
crystal clear.
-n0ustified Appraisal &riteriaA /o 0ustified appraisal criteria are implemented for
annual increase in salary and promotion of staff. $t creates un%satisfaction among the
employees of the +ank.
-ndemocratic 5ecision MakingA $ observed that some times employees are not
involved in decision%making process. Manager himself takes decision and orders to
make changes.
!tandard Procedure not adaptedA $n theory, standard procedures for practice and
process of transaction are forced to avoid fraud and forgery but $ observed that
standard procedure manual volume $, $$ and $$$ is ignored.
%atio ,na&ysis
Net )rofit Margin:
3his ratio measures the firmEs profitability of salesH interest earned after taking
account of all e6penses and income ta6es. 3his ratio can be calculated asA
/et profit margin ration S /et Profit after ta6es H interest earned
/et Profit ?atio
2((9 2((: 2((;
)2;(=H22:28 T )((
2;.;<P
);299H88()8 T )((
2=.2(P
)=(2;H9(9:= T )((
2;.:8P
76planationA from the calculation it is very much clear that the performance of /+P is
very good. And the trend is upward. $t tells us a firmEs net income per rupee of
revenue. As the trend is upward it shows the high profits in revenue per rupee in case
of /+P. $t is because of high advances the /+P has given to the people.
%eturn on 5@uity:
5ividing profit after ta6ation by shareholderEs e*uity. ?.7 compares net profit after
ta6es to the !hareholderEs 7*uity.
3his ratio is calculated asA
?.7SProfit after ta6esH!hare holderEs 7*uity
2)
?.7
2((9 2((: 2((;
)2;(=H2:)9< T )((
29.)8P
);299H92(89 T )((
22.92P
)=(2;H:=2;) T )((
2;.8<P
%eturn On ,ssets:
3his ratio shows the efficiency of organi1ation that how efficiently utili1es their
assets. 3his ratio relates profits to assets.
$t is calculated asA ?.A S Profit after 3a6H3otal Assets
?.A
2((9 2((: 2((;
)2;(=H9;;;)= T )((
2.)=P
);299H:29)22 T )((
2.;)P
)=(2;H;:2)=8 T )((
2.8=P
4rom calculation it is clear that this ration of /+P is increasing. $t shows that /+P
using itEs assets very efficiently. 3hat is why they are earning very high profits. 3his
shows that how efficiently they investing the assets thatEs why they are earning high
profits.
!nvestment de$osit %atio:
3his ratio shows the comparison of investments and deposits. 3his is calculated as.
$nvestment deposit ?atioA$nvestmentHdeposits
?eturn on
$nvestment
2((9 2((: 2((;
)9:=<:H8:282; T )((
22.<;P
)2==8;H9()<;2 T )((
2;.<<P
2)(;<<H9=)=(; T )((
29.:)P
,dvan"es de$osit %atio:
3his ratio show that how much efficiently the bank advances the deposits of their
customer to borrower.
$t is calculated as.
Advances deposit ratio S AdvancesH deposit
22
Advances
5eposit
?atio
2((9 2((: 2((;
2:<<2=H8:282; T )((
9<.()P
2):))(H9()<;2 T )((
:2.=<P
28(:;;H9=)=(; T )((
9;.9:P
4rom above table it is clear that the ratio is going high. "hich means the efficiency on
/+P is good and they use their deposits efficiently in advancing to borrowers. Here
high ratio is re*uired. 3he ne6t side of the picture is that the people will think that is
risky to deposit the money in the bank.
22
()O# Analysis o" the organi%ation
Strengt#
5eclared "orldEs best 4oreign 76change bank in 2((<
!table AAAHA%)M 3ipple AHa%.ne Plus# rated bank
+est ?eturn on &apital +ank for 2((: amongst all the banks in Asia
Highest Profitability bank of Pakistan
)( the +est +ank in terms of N Profit on &apitalE in the world
Having Highest Assets and &apital in Pakistan
4unctioning as an agent of !tate +ank of Pakistan
5ealing Government 3reasury where !+P has not its own branch
Having unshakable trust of the public and its stakeholders
Giving 'oans alone in the market against Gold .rnaments
Performing social responsibilities and claiming K3he /ationEs +ankL
5isbursing !alaries and Pensions to the Government employees and earning
high profit on /+P%Advance !alary 'oan !cheme
7arning commission from !+P on Government transaction
4acing never problem of cashHcurrency being its &hest and !ub%chest
+ranches all over the country
/+P have presence in the countries having si1eable trade volumes with
Pakistan by its overseas operations
Holds largest deposit base in the market share in terms of number of accounts
'eading bank in agriculture financing amongst commercial banks with the
market share of )9P
Helping in earning of foreign e6change, remittances and leading agent of
"estern -nion Money 3ransfer
!+P rated K4airL for capital > human resources, K!trongL for assets, K4airL for
management and K!atisfactoryL for both earning ?s.28.) for per share# and
li*uidity
=ea*ness
'owest $nternal &ontrol and &ompliance !ystem, !+P rated KMarginalL which
is alarming for the +ank
-nsatisfactory corporate culture of the +ank
Physical environment and atmosphere compare to other banks is not meet the
standard
'ess number of .nline +ranches
$neffectively use of technologies i.e. $nformation technology
!hortage of staff% per employee customer is very high side
3echnical education and training of staff is insufficient
28


O$$ortunities
+eing a Government +ank /+P having wide scope in economic market.
3rust and reliability creates chances to enhance deposit and profitability.
$ts vast network of domestic and overseas branches can help to e6pand
business.
+ankEs deposit is increasing rapidly so there is a great opportunity to enhance
its investment and financing.
+eing an agent of !tate +ank of Pakistan it can play vital role in local
economy.
7arning commissionHe6change on Government transactions.
#reats
!+P penalties due to low internal control and compliance.
Government, !+P and Prudential ?ules and ?egulations.
!chedule banks and MultinationalH$nternational bankEs profit rates.
$ts staff switching over to other private banks due to more facilities.
.ther bankEs charming atmosphere and rela6ation in documentation.
!+P rated 0ust KMarginalL in respect of !ystem > &ontrol which is alarming
for the +ank to survive its license.
/+P staff code of ethics and practices.
High number of complaints regarding staff behavior.
Government !chemes, Government ?evenue &ollection, Government.
Payments and 4+? &ollections create heavy workload.
29
!onclusion * recommendations
$n my opinion the process of a transaction should be short in order in save
time for both customers and the bank.
!taff strength should be enhanced and professional *ualified persons should be
recruited.
$t is recommended that proper training be provided to the staff members that
will ultimately increase the performance of +ank over all.
$t is suggested that promotion be given to the staff in due time and on the basis
of performance to provide 0ob satisfaction.
3he bank should spend more on renovation of the branches to improve
environment and atmosphere to attract the customers.
!itting arrangement, air conditioning and new furniture should be facilitated
3he +ank should introduce the computers software to cope the heavy load of
work and better control.
76tra counters should be established in order to facilitate during the rush days
the difficulties faced by the bank staff as well as the customers.
All +ranches of the +ank must be online.
All the departments should be established separately.
+ank can increase its profit ratio by reducing e6tra e6penditures and to enhance
the volume of advanced especially retail loans.
$ done internship, $ recommend that security level in the bank should be
enhanced especially where $ got internship and operation of Mobile phones must
not be allowed inside the +ank.
+ank should take step to establish separate counters for the old age employees
and pensioners.
3he +ank should locate new market for its operational activities in the country as
well as abroad.
3he +ank should increase profit rate on deposits and saving schemes
especially for pensioners and old age citi1ens.
4or improvement of internal control and system the compliance wing and
surprise inspection system should work more effectively.
3o avoid complaints and leaving the bank 0ob number of staff should be
enhanced and their salaries should be leveled to the privateHmultinational
banks.
5ouble shift system should be introduced to improve attitude and behavior of
the employees.
Payment of salaries and pensions should be made separately to accommodate
the valued customers and depositors.
4or collection of utility bills i.e. 7lectricity bills, 3elephone bills, "ater and
Gas bills separate cash receipt counter must be established.
Procedure of receiving loans should be easy and short time to facilitate the
borrowers and enhance the profitability of the +ank.
2:
Re"erences
). "ebsite of the +ank i.e. www.nbp.com.pk
2. 7conomic +ulletin, ,ol. 28, /o.9 !eptember R .ctober 2((;, published
bi%monthly by 7conomic ?esearch "ing, /ational +ank of Pakistan.
2. 7conomic +ulletin, March%Fune 2((<, published bi%monthly by
7conomic ?esearch "ing, /ational +ank of Pakistan.
8. /+P /ews lines, /ational +ank of PakistanEs /ewsletter Fanuary 2((<.
9. /+P /ews lines, /ational +ank of PakistanEs /ewsletter MayHFune,
2((<.
:. /+P /ews lines, /ational +ank of PakistanEs /ewsletter FulyHAugust,
2((<.
;. /+P /ews lines, /ational +ank of PakistanEs /ewsletter
!eptemberH.ctober, 2((<.
<. Management +rief, Fanuary 2((< published by Human ?esources
Management and administration Group, /ational +ank of Pakistan Head
.ffice @arachi.
=. Management +rief, March 2((< published by Human ?esources
Management and administration Group, /ational +ank of Pakistan
Head .ffice @arachi.
)(. Management +rief, Fune 2((< published by Human ?esources
Management and administration Group, /ational +ank of Pakistan
Head .ffice @arachi.
)). Management +rief, August, 2((< published by Human ?esources
Management and administration Group, /ational +ank of Pakistan
Head .ffice @arachi.
)2. 4inancials%Half Jearly Account Fune 2(, 2((<.
)2. 7conomic $ndicators Pakistan, Fanuary 2((< published by 7conomic
?esearch "ing, &redit Management Group, /+P Head .ffice @arachi.
)8. Annual ?eport 2((;, published by /+P, Head .ffice @arachi.
)9. +rochure% /+P Awards > Achievements.
):. +rochure% /+P @isan 5ost.
Annexes
2;
+rochure% /+P Awards > Achievements.
+rochure% /+P @isan 5ost.

2<