You are on page 1of 35

Contents

Introduction to the Report............................................................................................................................ 4 1.1 Purpose of the Internship ................................................................................................................... 4 1.2 Merits of the Report ........................................................................................................................... 4 1.3 Scope of Work/Report ........................................................................................................................ 4 1.4 Methodology of the Report ................................................................................................................ 5 1.4.1 Primary Sources: .......................................................................................................................... 5 1.4.2 Secondary Sources ....................................................................................................................... 5 1.5 Scheme of the Report ......................................................................................................................... 5 2.1. National Bank of Pakistan ...................................................................................................................... 7 2.1.1 Internship vitals................................................................................................................................ 7 2.2. Industry profile of financial institutions ................................................................................................. 7 2.2.1 Financial Institutions and Markets in Pakistan ................................................................................ 7 2.3. Financial markets of Pakistan ................................................................................................................ 8 2.3.1 Capital markets ................................................................................................................................ 8 2.3.2 Foreign exchange market................................................................................................................. 8 2.4 Financial institutions of Pakistan ............................................................................................................ 9 2.4.1 Banking financial institutions ........................................................................................................... 9 2.4.2 Non Banking financial institutions ................................................................................................... 9 2.5. Company profile................................................................................................................................... 10 2.5.1 Vision statement ............................................................................................................................ 10 2.5.2 Mission statement ......................................................................................................................... 10 2.5.3 Values ............................................................................................................................................. 10 2.6. Company business processes and schemes for customers ................................................................. 11 2.7. Branch network of National Bank of Pakistan ..................................................................................... 13 3.1. Managerial hierarchy ........................................................................................................................... 15 3.2. Current status of NBP .......................................................................................................................... 16 3.3. Bank running procedure ...................................................................................................................... 16 3.4. NBPs customers .................................................................................................................................. 16 3.5. Types of accounts available at NBP Shadman branch ......................................................................... 16

University of Central Punjab

Page 1 of 35

3.6. Types of transfer facility available at NBPs ACP model branch .......................................................... 17 3.7 Lockers service ...................................................................................................................................... 17 3.8. Company business processes............................................................................................................... 18 3.8.1 Operations management department/Finance department ........................................................ 18 3.8.2 Foreign exchange ........................................................................................................................... 22 3.8.3 HR department............................................................................................................................... 24 4.1. SWOT Analysis...................................................................................................................................... 26 4.1.1. Strengths ....................................................................................................................................... 26 4.1.2 Weaknesses ................................................................................................................................... 28 4.1.2 Opportunities ................................................................................................................................. 28 4.1.3 Threats ........................................................................................................................................... 29 4.3. Findings of organization Analysis ......................................................................................................... 30 4.3.1. World Class Services ..................................................................................................................... 30 4.3.2. Coordination ................................................................................................................................. 30 4.3.3. Employee Behavior ....................................................................................................................... 30 4.4. Practical knowledge gained ................................................................................................................. 30 5.1. 5.2 Recommendations .......................................................................................................................... 32 Conclusion ....................................................................................................................................... 33

Bibliography ................................................................................................................................................ 34 Person resources..................................................................................................................................... 34 Web resources ........................................................................................................................................ 34 NBP Reports and Manuals ...................................................................................................................... 34 Broachers and guidelines ........................................................................................................................ 34 NBP Books and logs................................................................................................................................. 34 NBP financial report 2010 ....................................................................................................................... 34 Appendix ..................................................................................................................................................... 35

University of Central Punjab

Page 2 of 35

Chapter 1

University of Central Punjab

Page 3 of 35

Introduction to the Report This Internship report deals with an analysis of National bank of Pakistan in general and ACP Model branch in particular. The main aim to submit this report is to earn a degree of BBA hons including internship a complete course of study from University of Central Punjab. 1.1 Purpose of the Internship Internship has been performed in summer 2011 to meet the following purposes. 1. Primary Purpose and Secondary Purpose Primary Purpose The primary purpose of the internship was to fulfill the academic requirements of my study. Secondary Purpose The secondary purpose of this internship was to analyze the banking sector in a corporate world and to evaluate these practices in comparison with the contemporary banking practices. The purpose of the study also includes practical implementation of knowledge from classroom lectures to the real life situations. Besides these aims some other purposes are also mentioned below To give a comprehensive review of National bank of Pakistan. To analyze NBPs departmental operations. To identify the opportunities for improvement of bank. To present some feasible solutions for the problems pertaining to NBP.

1.2 Merits of the Report This report will not only benefit the ACP Model branch in particular but also NBP in general through presented solutions of the prevailing problems. In academic world, this report will facilitate finance and banking students to learn the real world situations and operations of banking sector. 1.3 Scope of Work/Report Banking has a very broad scope. In six to eight weeks of internship, it is very difficult to understand each and every aspect of bank. Due to the barriers of limited time and space, the University of Central Punjab Page 4 of 35

scope of work is usually confined. However this study of NBP will help the management to identify their weaknesses and threats and overcome them by using their strengths and capitalizing on opportunities. 1.4 Methodology of the Report This study involves two types of data for report writing. 1.4.1 Primary Sources: Interviews and discussion with staff members Personal observations and learning

1.4.2 Secondary Sources Annual reports of NBP Brochures & Manuals. Websites Newspapers Previous Internship Reports.

1.5 Scheme of the Report This internship report is divided into five chapters as: Chapter one includes introduction, purpose, scope, methodology, and scheme of the report. Chapter two includes internship vitals, industry analysis of banking sector in Pakistan, background of NBP, company profile, branch network. Chapter three includes organizational structure of NBP, its departments and company business processes. Chapter four includes financial, SWOT analysis and findings based on work in chapter three. Chapter five includes recommendations of the study based on the analysis in the previous chapter.

University of Central Punjab

Page 5 of 35

Chapter 2

University of Central Punjab

Page 6 of 35

2.1. National Bank of Pakistan 2.1.1 Internship vitals Items Organization Branch name Address Start date Supervisor name and contact Total time End date Internship position National Bank Pakistan ACP Model Branch Shadman Lahore July 16, 2011 Mr. Illyas 6 Weeks 29 August, 2011

2.2. Industry profile of financial institutions 2.2.1 Financial Institutions and Markets in Pakistan Complete study of financial institutions and markets of Pakistan portrays the image of regulation of countrys economy and gives some idea on the rates of shares and bonds available on the share market. The regulation and governance of Pakistan's financial market and corporate sector have been substantially strengthened with the commencement of operations of the Securities and Exchange Commission of Pakistan (SEC) in 1999. The SECs role was further enhanced when it was assigned regulatory responsibility for the insurance industry, non-banking finance companies (NBFCs) and private pension schemes in 1999 and 2000, respectively. The non-bank financial sector has undergone major consolidation and is emerging on strong footing to act as a productive agent of allocating resources. It is, therefore, of utmost importance that the capacity of the regulator is further enhanced in terms of skills, systems and procedures, to meet the challenges in todays dynamic financial markets. Financial institutions and markets are divided further on the base of services they are providing to their customers. University of Central Punjab Page 7 of 35

2.3. Financial markets of Pakistan Financial market structure of Pakistan consists of three main markets 2.3.1 Capital markets Capital markets of Pakistan includes Stock markets, which provide financing through the issuance of shares or common stock, and Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading. 2.3.2 Foreign exchange market Foreign exchange markets facilitate the trading of foreign exchange. Over the years, the financial market of Pakistan is in its growth and has been experiencing a number of foreign bankers embarking into the country.

ABN AMRO Bank American Express Bank Limited Citibank Bank of Tokyo Mitsubishi Limited Deutsche Bank AG Hongkong and Shanghai Banking Corporation Habib Bank AG Zurich Oman International Bank SOAG The Bank Of Punjab Standard Chartered Bank Limited Albaraka Islamic Bank

2.3.3 Commodity markets Commodity markets facilitate the trading of commodities. Pakistan has three stock exchanges to monitor the financial trading in Pakistan - Karachi Stock Exchange, Islamabad Stock Exchange and Lahore Stock Exchange. Karachi Stock Exchange is the largest stock exchange in Pakistan and is the best barometer for indicating the market fluctuations. In order to get acquainted with the financial and monetary market of Karachi, it's necessary to get some knowledge of the Karachi stock exchange. The slightest up and down swings in the market University of Central Punjab Page 8 of 35

indices may cause havoc changes in the prices of shares and bonds. Islamabad stock exchange is the second largest in the country and gives a fine sketch of the Pakistan financial market too. 2.4 Financial institutions of Pakistan 2.4.1 Banking financial institutions The State Bank of Pakistan is the central bank of the country and serves as the sole authority to issue and distribute the currency of Pakistan. Headquartered at the financial capital of Pakistan, Karachi, State Bank of Pakistan takes the responsibility to take care of the economic growth and maintain price stability in the country. The State Bank of Pakistan also takes various measures to monitor the financial market of Pakistan. The major banks of Pakistan are:

Allied Bank of Pakistan Limited National bank of Pakistan Atlas Bank Limited Bank AL Habib BankIslami Pakistan Limited Bank Al-Falah Limited Crescent Commercial Bank Limited Habib Bank Limited Dawood Bank Limited Habib Metropolitan Bank Meezan Bank Limited KASB Bank Limited

2.4.2 Non Banking financial institutions 36 non-banking financial institutions (NBFI's) are working in Pakistan. NBFI's includes 10 development financial institutions, 16 investment banks, four housing finance companies, two venture capital companies, and four discount houses.

University of Central Punjab

Page 9 of 35

2.5. Company profile National Bank of Pakistan is the largest commercial bank operating in Pakistan. It has and has moved from a public sector organization to a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen. 2.5.1 Vision statement To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility. 2.5.2 Mission statement
NBP will aspire to the values that make NBP truly the Nations Bank, by

Institutionalizing a merit and performance culture Creating a distinctive brand identity 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 2.5.3 Values
NBP aim to be an organization that is founded on a. Growth through creation of sustainable relationships with our customers. b. Prudence to guide our business conduct. c. A national presence with a history of contribution to our communities. NBP shall work to Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts.

University of Central Punjab

Page 10 of 35

Create value for all stakeholders. NBP aim to be peopling who Care about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures of true success. NBP have confidence that tomorrow we will be Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment

2.6. Company business processes and schemes for customers It has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan, It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the

University of Central Punjab

Page 11 of 35

upgradation of the IT infrastructure and developing the human resources. National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing , Tashkent , Chicago and Toronto . It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty , Kazakhstan . The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore). The Bank's financial performance has been remarkable. In 2006, total assets are estimated at Rs635 billion, while deposits have grown to nearly Rs502 billion. Pre-tax profit rose to Rs26 billion. Earnings per share have jumped to Rs24.01 in 2006. The increase in profit was achieved through strong growth in core banking income. Interest income increased by Rs10 billion through growth in the loan portfolio as well as increase in spreads. Advances increased by Rs48 billion to Rs316 billion. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration. It ranges from providing credit to the un-banked market segment under NBP Karobar, to small and medium enterprises, to agricultural loans, to large corporate customers.

University of Central Punjab

Page 12 of 35

2.7. Branch network of National Bank of Pakistan

University of Central Punjab

Page 13 of 35

Chapter 3

University of Central Punjab

Page 14 of 35

3.1. Managerial hierarchy

Preseident

Senior executive vice president

Executive vice president

Senior vice president

Vice president

Assistant vice president

Management training Officer

Officer grade 1

Officer grade 2

Officer grade 3

Senior assistant and assistant

Head Cashier and cashier

University of Central Punjab

Page 15 of 35

3.2. Current status of NBP National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.

3.3. Bank running procedure

Savings

Investment

Collected markup at the finances provided to customers serves as a profit for the bank.

3.4. NBPs customers NBP hold two types of customers. One is walk in customers and second is account holders. Walk in customers are those who comes bank; for inquiry, submission of utility bills, challan forms and tax payers. Account holders are those who regularly transact in bank through their accounts in the branch.

3.5. Types of accounts available at NBP Shadman branch There are following account titles are available for the customers PLS account ( Profit Loss sharing account/ 2.5% Zakat deduction) Current account (for safe custody/ no zakat deduction)

University of Central Punjab

Page 16 of 35

Premium saver account (for specific fixed period) NIDA ( National income daily account)

3.6. Types of transfer facility available at NBPs ACP model branch There are four types of transfer facilities are available which deals with local and intercity transfers. Pay to order It is a local payment order. Demand draft It is an outstation payment facility. The bank who prepares demand draft also issues demand draft advice to the respective bank to which they refer. This DD advice is the confirmation for the processing of amount from demand draft. Mail transfer Mail transfer can be use for both local and outstation transaction purposes and safe travelling cash facilities. This facility is used only for internal banking that is from NBP to NBP. Telegraphic transfer It is telephonic exchange of coded language to convey the secret message to the bank. For this facility, receiving bank confirms the telephonic message by matching TT confirmation from call back to the bank.

3.7 Lockers service National bank of Pakistan also provides lockers facility to its depositors in the country. Every branch of NBP does not hold this facility of lockers but ACP Model branch has lockers available to its customers. Lockers are only provided to the depositors of the bank. Issuance of lockers also follows different formalities to confirm the validity of depositor holding an account in the bank. Items placed in lockers are not known to the bank and kept private with the depositor. Lockers are made by very hard and shock resistant material. The dual control system is used for lockers. The officer has master key to apply on the locker but he cannot open the locker of any person. The locker holder provides the bank has specimen signature. Whenever the locker

University of Central Punjab

Page 17 of 35

holders come to open the locker, his signatures are verified by the officer and then locker holder becomes able to open his locker. If the key of the locker is lost, company providing lockers, breaks the locker and new lock is fitted in its replacement. Lock is destroyed in the presence of the locker holder and bank charges RS 1200 for issuance of new key. In case the locker holder dies, the court opens his locker in the presence of his heir as mentioned in his will and his belongings are given to them with closing of locker. In this way lockers are kept secret to the locker holder and bank consults court for applicable law in case of any emergency.

3.8. Company business processes Company departmental functions Following departments exist at ACP Model branch of NBP. Operations management department/Finance department HR department Foreign exchange Import / export

3.8.1 Operations management department/Finance department NBPs operations are mostly based on finance department which performs the main tasks of running finance in a bank. Its operations are dealt with financial and non financial transactions. It includes all the following sections. Cash section Deposit section Pension section Clear cash book maintenance

Different branches deals with different activities but some activities are common among all branches like 1. Financial transactions 2. Non financial transactions

University of Central Punjab

Page 18 of 35

3. ATM summary report 4. Vouchers 5. Notification letters for change of accounts operating status 6. ATM renewal fee charges collection 7. Clearance of checks 8. Day book 9. Transfer scroll 10. Clean cash book 11. Bouncing of checks 12. Change in operative status Financial transactions Financial transactions are mostly conducted at the cash operating desk. Cashier manages the flow of a check- cash transaction. A coming check at the counter follows the following path.

University of Central Punjab

Page 19 of 35

Non financial transactions Non financial transactions includes Account opening, balance inquiry, ATM card receiving, change in operating status, change of title of account, system generated non financial transaction report and online banking transactions etc. Account opening Account opening deals with several formalities to confirm the validity of the customer. Application form for the account opening procedure is required to be filled by the customer. An SS Card attached with the form requires customers signature specimen which are stored in the system if his account gets approval from the branch manager. Letter of thanks and his utility bills are required to confirm the address of customer. ATM Summary report Every 24 hours ATM summary report is maintained, the amount added in the ATM machine and the remaining amount in ATM with the amount mentioned in general ledger for that day. This summary report is made from 12 am to the next day 12 am, 24 hours period. ATM machine include following different types of transactions. 1. Transactions conducted by Branch ATM card holders from NBPs same branch 2. Transaction conducted by NBPs other branch card holders from our branch 3. Transactions conducted by our branch card holders from other branches 4. Transactions conducted by other banks card holders from our branch 5. Transactions conducted by our branch card holders from other banks ATM summary report includes four different amounts only to balance its sum with general ledgers value for that day. First value is the sum of amount remaining in the ATM machine. Second value is taken from the sum of all withdrawals made by our branch card holders from same branch. Third value is the sum of all withdrawals made by NBPs other branch card holders from our branch. While, fourth value is the sum of withdrawals made by other banks card holders from our branch ATM machine. These values are summed and matched with the general ledgers amount. Vouchers Two types of vouchers are made in the bank i-e. Debit vouchers and credit vouchers. Debit vouchers are made to settlement department in Karachi against banks account. Debited amount is the amount that our branch card holders withdraw from other banks ATM machines and bank University of Central Punjab Page 20 of 35

is suppose to pay to them. Credit vouchers are made in accordance to credit the bank account and debit the settlement department Karachi in order to receive money from other banks which their card holders withdraw from our branch ATM machine. Every time if one debit voucher is made, it is credit by the same amount and vice versa. Necessities of vouchers are title of account, date, account number, prepared by and explanation. Notification letters for change of accounts operating status There are two types of operating status i-e dormant and inoperative. Any accounts operating status become dormant after no operation till 6 months and with notification it needs to be change accordingly. In the same way, any account becomes inoperative after two years. ATM renewal fee charges collection Bank deducts ATM renewal fee every year. If the account does not hold any amount, it is debit through a voucher at the time when it hold amount and the banks account becomes credit. List of these account holders are prepared and kept updated to recover the ATM renewal charges. Clearance of checks Checks from other banks are cleared first before their processing. When a check from other bank comes to the deposit desk for its processing, it goes through different stamps and clearing processes. The check is sent to the respective bank for confirmation. When the bank confirms the check belongs to them and check holder has account with sufficient balance, then our bank clears the amount and add a voucher to settlement department. Day book This is system generated report which consists of all transaction types related with the branch. It includes current, PLS account and foreign exchange transactions. On daily basis all the vouchers types and their particulars and tallied with the day book for confirmation of the balance. Transfer scroll This is a digital record of all transfer details. Clean cash book This register deals with all day end entries. These entries are tallied with the general ledger accounts and their T accounts.

University of Central Punjab

Page 21 of 35

Check bounce There are several reasons for the check bounce. Some of the major reasons are given below. Insufficient balance Signatures do not match Payees endorsement requires bank guarantee Payees endorsement irregular Full cover not received Check is outdated Check is post dated

Change in operative status When no transactions are made to accounts for certain period of time, banks system changes their operative status to dormant or non operative. These status types depend upon the period of non operations in the account. When no transaction is made till 6 months, its status become dormant and it needs to be change for further conduct of transactions with the same account. Account holder is required to submit an application for the change of status and follow prescribed format. In the same way when no transaction is made till 1 year for PLS account and 2 years for current accounts, dormant status further changes to inoperative. Bank sends notification letters for further processing. After 3 years of inoperative, account changes the title of unclaimed deposit accounts. After 10 years of no transaction, the prevailing amount in account is transferred to the head office with prior notice of 3 months earlier to the account holder. 3.8.2 Foreign exchange Foreign exchange department is authorized department in National bank of Pakistans ACP model branch. It got its authorization from State bank of Pakistan. Foreign exchange department is dealing with its operations under the head of Assistant vice president. Certain services provided
by the NBP are given below.

1. Documentary Letter of Credit 2. Bills of Negotiation 3. Bills for collection

University of Central Punjab

Page 22 of 35

Documentary Letter Of Credit A documentary letter of credit may be defined as an authority issued by the opening bank on behalf of the importer in favor of the exporter with the stipulation that the drafts drawn there under will be duly honored provided that the terms and conditions as mentioned there in are duly compiled with. With respect to the documentary credit the following types of documentary letter of credit are offered by NBP; Revocable LC Irrevocable LC Confirmed LC Transferable LC Back to back LC Stand by LC Sight LC Bills for Negotiation In some cases the exporter is not willing to wait for the proceeds of collection to be remitted. In such cases exporter requests the Bank to negotiate the bills i.e. he sends the documents to Bank. In this case Bank examines the documents and arranges them with the requirements mentioned in the Letter of Credit. When bank satisfied it pays to the exporter. Now Bank has the right to collect the proceeds on his own behalf from the importers Bank NBP performs the functions of both the exporters and the importers Bank as per its customers status. Bills for collection The exporters and bank receives the documents from the exporter, examines and dispatches them to the importer, s bank. The importer, s bank confirms these, as per the requirements stated in the letter of credit. If founds correct gets the amount from the customer, advice the exporter, s bank about the receipt of payment and in the end makes the payment to the exporters bank.

University of Central Punjab

Page 23 of 35

3.8.3 HR department HR department of National bank of Pakistan deals with the main backbone work of any good organization i-e recruitment of right person at the right job. Besides recruitment, NBPs HR also deals with employee pays and payment issues. Salary structure Bonuses These bonuses are credited after every six months i.e. June and December. These are first and second profit bonuses and are equal to one month's basic salary. Allowances Allowances included house allowances, transport allowance and utility allowance. Provident Fund Provident fund is provided to each employee on his retirement. Contribution by employer and employee is 8.3%.

University of Central Punjab

Page 24 of 35

Chapter 4

University of Central Punjab

Page 25 of 35

4.1. SWOT Analysis Environmental scanning of National Bank of Pakistans ACP model branch is done by the organizations management team. A complete analysis of banks internal and external factors has been made in order to work more efficiently and effectively by utilizing banks key resources in accordance with external opportunities and threats.

Strengths
Largest financial institution of Pakistan Extensive domestic branch network Right arm for government of Pakistan Organizational culture strong strategic management Best research appraisal team

Weaknesses
Poor advertisement Poor interior branch layout Long account opening procedures Less online branches

SWOT Analysis
Opportunities
Sponsor IT based projects Growth in industrial sector Use of modern banking techniques

Threats
Political instability

4.1.1. Strengths Largest financial institution of Pakistan NBP one of the largest financial institutions of Pakistan with eight million of customer base NBP holds 24.6% share of time and demand deposits in the country. Local currency deposits comprise 67% of bank's total deposits while foreign currency deposits account for the rest.NBP has always been considered as the pillar of the country's economic scenario asset wise or balance sheet wise. Its image, work force,

University of Central Punjab

Page 26 of 35

network and reputation have created a sentimental and emotional attachment of the people with the bank. Extensive domestic branch network NBP has an extensive domestic branch network system. There are 1200 (according to the latest data) branches located all over Pakistan and 19 branches are located internationally including the USA, United Kingdom, Europe and the Far East. Right arm for government of Pakistan NBP is working as a right arm for government of Pakistan. It is responsible for all claims of government recovery as well as payments. All depositors of NBP are in relief that their money security is guaranteed by government of Pakistan. It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch. Organizational culture NBP's organization culture is very friendly and interesting. Employees have created a very cooperative environment for each other. They have created loyalty toward the organization by deviating their future efforts and energies for betterment of the countrys economy through National Bank of Pakistan. The employees take the organizational problem personals and try their best for the prosperity of the organization. Strong strategic management Fortunately NBP has got from time to time best top management. Its strategic top management contributes a lot towards the success of every branch of national bank of Pakistan. Best research appraisal team Before the project financing NBP has the research appraisal team that justifies the economic and financial feasibility of not project in the future. That is the strength is the scare that it helps the organization from any loss that is to over in the future in case of failure of the project.

University of Central Punjab

Page 27 of 35

4.1.2 Weaknesses Poor advertisement National bank of Pakistan lacks in its advertisement campaigns as compare to other banks in the banking industry. Poor interior branch layout Interior branch layout of the NBPs branch increases its unnecessary operations. This adds to the banks weakness. Even walk in customers also find it difficult to process it need in the bank. Long account opening procedures NBPs operations for account opening are too long and tiring for the customers. Some of the formalities for account opening are unnecessary and customers switch to other banks when they came to know the whole process of account holding and opening in the NBPs branch. Less online branches Most of todays generation is online. Many businesses have switched to online services to attract so many customers. NBP lacks in providing online services to its customers. Very few of the branches are online. 4.1.2 Opportunities Sponsor IT based projects This is the best opportunity available to all banks and NBP as well, to sponsor the IT and computer based projects because the coming century is the century of information technology as now, all the business community is diverting its attention towards this field. Growth in industrial sector NBP's major function is the project financing and it is doing it with full efforts. Fortunately industrial sector is now-a-days is Pakistan is again growing thus increasing the business opportunities of NBP. Especially the textile sector is one again improving even the sick projects has resumed their operations.

University of Central Punjab

Page 28 of 35

Use of modern banking techniques National bank of Pakistan still lacks in use of modern banking facility. There is a room for bringing more modern banking techniques to national bank of Pakistan as compared to the other banking sectors.

4.1.3 Threats Political instability This is the major threat for any business organization in Pakistan because the political officials influence NBP in financing those projects which are not viable or write off those loans which are still able to pay, this political influence cause many problems in daily business thus profitability of NBP. Political industrial is even a threat for NBP in the sense that once the policies and procedures are approved by government.

University of Central Punjab

Page 29 of 35

4.3. Findings of organization Analysis The findings and analysis of National Bank of Pakistan are as follows: 4.3.1. World Class Services The bank is providing its customers world class and excellent services. This is the main reason for the growth of the bank. 4.3.2. Coordination Meetings are held very frequently which keeps the head-office well informed about the performance of its branches and also provides officials with the opportunity to communicate, discusses and deals with different situations as they arise. Friendly environment in the bank facilitates coordination among its employees. 4.3.3. Employee Behavior The employees of National bank of Pakistan are very committed to their work. They are very hard working and punctual but some of them have problems with he environment of the bank and they feel that the branch environment is not very encouraging.

4.4. Practical knowledge gained During my 6 week training and learning session of internship, I learnt many new things and concepts about banking sector operations. Before my internship, while using my ATM card, I always remain curious about the operations of ATM machine. During my first week, when I started working on ATM summary report, I got all the related information about it. Clearance of cheques was something very new for me. I have learnt maximum banking terminologies and aware of operations in mostly departments.

University of Central Punjab

Page 30 of 35

Chapter 5

University of Central Punjab

Page 31 of 35

5.1.Recommendations Based on my six weeks stay with National Bank of Pakistan, I want to give some suggestions for improvement in its operations as under In NBP, there is misdistribution of work; some people are over burdened with the work. So I suggest that there should be fair distribution of work in all the departments. Participative management concept should be adopted, where ideas from the employees should also be taken, not only for developing products but also on service, efficiency, employee morale etc. in order to improve them. NBP should introduce more training programs for their employees. It will help less educated and less experienced staff to grow and be a valuable part of the bank.

University of Central Punjab

Page 32 of 35

5.2 Conclusion The six weeks spent at National Bank of Pakistan, ACP Model branch were, no doubt a source of great learning for me about a lot of things particularly working in banks atmosphere and system of bank. This practical training program did not only help me acquire loads of knowledge about the predominant functions performed by banking companies, but also imparted a lot of training as regards the set of behavioral traits which distinguish a particular person from the rest of the lot in a professional environment. NBP is the largest bank in Pakistan providing its services to individuals and commercials also. It is fulfilling its mission for the organization. Due to highly trained professionals it is used to make progress leaps and bound.

University of Central Punjab

Page 33 of 35

Bibliography Person resources Mr. Munim Mahmood Mr. Illyas Mr. Rauf Mr. Ali Mr. Umar

Web resources http://www.nbp.com.pk/ http://www.nbp.com.pk/Publications/index.aspx http://www.nbp.com.pk/Publications/AnReport2010.aspx

NBP Reports and Manuals Broachers and guidelines NBP Books and logs NBP financial report 2010

University of Central Punjab

Page 34 of 35

Appendix

University of Central Punjab

Page 35 of 35