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.

MISSION STATEMENT
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 stake holders value.
Discharging our responsibility as a good corporate citizen of
Pakistan and in countries where we operate.

CORE VALUES
Highest standards of Integrity.
Institutionalizing team work and performance culture.
Excellence in service.
Advancement of skills for tomorrows challenges.
Awareness of social and community responsibility.
Value creation for all stakeholders.
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INTRODUCTION OF NBP
National Bank of Pakistan is the largest commercial bank operating
in Pakistan. Its balance sheet size surpasses that of any of the other
banks functioning locally. It has redefined its role and has moved
from a public sector organization into 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.
In today's competitive business environment, NBP needed to
redefine its role and shed the public sector bank image, for a
modern commercial bank. It has offloaded 23.2 percent share in the
stock market, and while it has not been completely privatized like
the other three public sector banks, partial privatization has taken
place. It is now listed on the Karachi Stock Exchange.
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
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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, and NBP Cash n Gold.

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NBP PRODUCTS
Following are the NBP Main products:
NBP Cash Card
NBP Saiban
NBP Karobar
NBP Cash n Gold
NBP Kisan Dost
NBP Advance Salary
NBP Premium Aamdani
NBP Premium Saver
NBP Investor Advantage
NBP Pak Remit

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NBP CASH CARD

ATM + Debit Card (One Card Does it All)

ATM + Debit Card

Use it as an ATM in any of
the ATMs in Pakistan.
Use it as Debit Card in any of
the outlets with ORIX POS
machine.
Cash withdrawal up to Rs.
20,000/- per day.
Account Balance Enquiry.
Mini Statement (Only at NBP
ATM).
PIN Change facility (Only at
NBP ATM).

NBP SAIBAN
(Open the Door to Your Dream Home)
Home Financing
Home Purchase.
Home Construction.
Home Renovation.
Purchase of Land +
Construction.
Balance Transfer Facility
(BTF).

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NBP KAROBAR
(Mera Apna Karobar)
Mera Apna Karobar
Minimum down payment,
10% of asset price (5% for
PCO & Telecaster)
Tenure 1 to 5 years (for PCO
2 years)
Grace period 3 months
Maximum loan amount Rs.
200,000/ Age 18-45 years
Mark-up (variable) 1 year
KIBOR + 2.00% p.a.
The customer will pay markup @ 6% p.a., rest will be borne by
GOP.

NBP CASH & GOLD

(Encash & Meet Your Needs)
Ready Cash Against Gold
Facility of Rs. 14, 000/-against
each 10 gms of net weight of
Gold Ornaments
No maximum limit of cash
Repayment after one year
Roll over facility
No penalty for each repayment

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NBP KISAN DOST

(Agriculture Made Easy)
Agriculture Farming Program
Competitive mark-up rate.
Quick & easy processing.
Delivery at the farmers
doorstep.
Technical guidance to
farmers.
Wide range of financing
schemes for farmers.
Finance facility up to Rs.
500,000/- for landless
farmers against
personal guarantee.
Financing available against
pass book, residential/commercial
property, gold ornaments and paper security.

NBP ADVANCE SALARY

(Take up to 20times of your salary)

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NBP

Advance Salary

Easy installments of 1 to 60 months at your own choice

No minimum income collateral and insurance charges required
Quick processing and fast disbursement
For permanent employees of government, semi government and
autonomous bodies receiving salaries through NBP account

NBP PREMIUM AAMDANI

(Unprecedented Safety Unprecedented Return)

Monthly Income Scheme

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Earn up to 11% p.a. +

Minimum deposit of Rs. 20,000/and a maximum deposit of Rs.
5,000,000/- for 5 years
Free Demand Draft, Pay Order
and Cheque Book

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Convenience of NBP online Aasan Banking (for online banking

customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%

NBP PAKREMIT
(NBPs Internet Based Home Remittance Service)
NBP PakRemit
PakRemit is an internet based Home
Remittance Service. This service is
available to U.S. residents for sending
money to their family and friends in
Pakistan. One must have a valid US
Dollar account with a U.S. bank or a US
Dollar credit or debit card in order to
remit funds through this channel.
Remitters in USA can log on to our user
friendly website, www.pakremit.com and
easily remit funds to Pakistan from the comfort of their homes, in a
matter of minutes.

NBP SERVICES

DEMAND DRAFTS
If you are looking for a safe, speedy and reliable way to transfer
money, you can now purchase NBPs Demand Drafts at very
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reasonable rates. Any person whether an account holder of the

bank or not, can purchase a Demand Draft from a bank branch.

SWIFT SYSTEM
The SWIFT system (Society for Worldwide Inter bank Financial
Telecommunication) has been introduced for speedy services in the
area of home remittances.

The system has built-in features of

computerized test keys, which eliminates the manual application of

tests that often cause delay in the payment of home remittances.
The SWIFT Center is operational at National Bank of Pakistan with
a universal access number NBP-APKKA.

All NBP overseas

branches and overseas correspondents (over 450) are drawing

remittances through SWIFT.

LETTERS OF CREDIT
NBP is committed to offering its business customers the widest
range of options in the area of money transfer.

If you are a

commercial enterprise then our Letter of Credit service is just what

you are looking for. With competitive rates, security, and ease of
transaction, NBP Letters of Credit are the best way to do your
business transactions.

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PAY ORDER
NBP provides another reason to transfer your money using our
facilities. Our 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 extremely competitive.

a
.
1
.
2
.

Issuance of Pay order

For NBP Account Holder
For

NBP

Non-Account

Holder

Rs. 50/- (Flat)

Rs. 100/- (Flat)
Rs. 25/- (Flat) from student
for payment of fee favoring
educational institution

Issuance

.
1

Pay order

.
2
.

of

duplicate

For NBP Account Holder

For

NBP

Holder

Non-Account

Rs. 100/- (Flat)

Rs. 150/- (Flat)

MAIL TRANSFERS

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Move your money safely and quickly using NBP Mail Transfer
service.

And we also offer the most competitive rates in the

market.

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FOREIGN REMITTANCES
To facilitate its customers in the area of Home Remittances,
National Bank of Pakistan has taken a number of measures to:
Increase home remittances through the banking system
Meet the SBP directives/instructions for timely and prompt delivery
of remittances to the beneficiaries

SHORT TERM INVESTMENTS

NBP now offers excellent rates of profit on all its short term
investment accounts.

Whether you are looking to invest for 3

months or 1 year, NBPs rates of profit are extremely attractive,

along with the security and service only NBP can provide.

NATIONAL INCOME DAILY ACCOUNT

The scheme was launched in December 1995 to attract corporate
customers. It is a current account scheme and is part of the profit
and loss system of accounts in operation throughout the country.

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EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its
economic base and restore investor confidence. The bank is now
regarded

as

the

most

active

and

dominant

player

in

the

development of the stock market.

NBP is involved in the following:
Investment into the capital market
Introduction of capital market accounts (under process)
NBPs involvement in capital markets is expected to increase its
earnings, which would result in better returns offered to account
holders.

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COMMERCIAL FINANCE
Let us help make your dreams become a reality
Our dedicated team of professionals truly understands the needs of
professionals, agriculturists, large and small business and other
segments of the economy. They are the customers best resource in
making NBPs products and services work for them.

TRADE FINANCE OTHER BUSINESS LOANS

AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidify faith, commitment and
pride of farmers who produce some of the best agricultural products
in the World.
Agricultural Finance Services:
I Feed the World program, a new product, is introduced by NBP
with the aim to help farmers maximize the per acre production with
minimum of required input. Select farms will be made role models for
other farms and farmers to follow, thus helping farmers across
Pakistan to increase production.
Agricultural Credit:

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The agricultural financing strategy of NBP is aimed at three main

objectives:
Providing reliable infrastructure for agricultural customers.
Help farmers utilize funds efficiently to further develop and
achieve better production.

Provide farmers an integrated package of credit with

supplies of essential.

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INTERNATIONAL BANKING
National Bank of Pakistan is at the forefront of international
banking in Pakistan which is proven by the fact that NBP has its
branches in all of the major financial capitals of the world.
Additionally, we have recently set up the Financial Institution Wing,
which is placed under the Risk Management Group. The role of the
Financial Institution Wing is:
To effectively manage NBPs exposure to foreign and
domestic correspondence
Manage the monetary aspect of NBPs relationship with the
correspondents to support trade, treasury and other key
business

areas,

thereby

contributing

to

the

banks

profitability
Generation

of

incremental

trade-finance

business

and

revenues
NBP offers
The lowest rates on exports and other international banking
products
Access to different local commercial banks in international
banking.

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DEPARTMENTS OF NATIONAL BANK OF

PAKISTAN

CURRENT DEPOSITS DEPARTMENT

This is the core of all departments; it accepts deposits from customers
and cash the checks of customers. This department also deals with the
clearing

of

checks

system

and

remittance

of

demand

drafts,

telegraphic transfers, pay orders, ATM card issuance, accounts

opening/closing. In this department, The officer observed that during
check cash procedure, customer gives check at the counter and check
is examined by Junior Officer with requirements like; date, amount in
accordance with words and numbers, signature of presenter of the
check either he or she is A/C holder or not. Then the checks the
Payees Account Stamp (if stamped) bearer and non-bearer crossings
etc. after that balance of amount is checked if amount is present then
check will be sent to CD in charge who is on the duty of verifying the
checks signatures with given cards signatures and then pass it to the
cash section where cashier watches the verification sign of in charge
and then pay the amount written in the Cheques. In this way Cheques
clears and payment is made to customer.

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FOREIGN EXCHANGE DEPARTMENT

Foreign exchange department deals with the transactions concerning
export and import. Basically there were only 3 (three) responsible
persons who were organizing the activities of foreign exchange. One
of them was the head of department who were looking over the each
and every dealing of department Import concerned person was
dealing with the import related matters like; LCs (letter of credits),
Shipping guarantees etc, while on the other hand export person was
dealing with the exports related matters like; LCs (which are opened
for exporter) amount paid against documents, foreign currency
accounts are also dealt by him. BAL generally deals with four
Main Currencies
Main currencies, which are very important in foreign exchange
business, namely:
Dollar
Sterling Pound
Japanese Yen
Euro
In this department, demand drafts telegraphic transfers and opening
of foreign currency accounts were also dealt with. In addition, This is
the department that gives marginal revenue to branch. Because bank
charges commission and fees, which make marginal contribution in
total revenue. It is the crux of whole bank activities and gives certain
considerable benefits to the customers; like; low risk in payment of
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goods, lowest risk in exchanging currency etc. The job of foreign

exchange department is very meticulous and diligent skills are needed
to be performed. Export concerned person also conducted remittances
of foreign exchange.

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LOANS AND ADVANCES DEPARTMENT

This department was comprised of three persons who were dealing all
activities of credit department. To give loan to Businessmen and
individuals is the medium to convert customer deposits into own
money. As bank receives deposits at lower rates and lend them at
higher rate. Basically, this department deals with the activities of
various types of credits, nature of advance creation of charge,
monitoring of classified advances etc.
Besides, different fund based and non-fund based activities were
being performed by various sources. Credit procedure was very
lengthy and requires more concentration and skills to be invested in it
to deal the regulations of SBP and limitations of head office as well as
branch is the difficult task for credit officer. Because he is the person
who makes money by lending reliable person and make decision
meticulously to attain return with principal within required period. In
this connection, I can say credit department is the cardinal bone of
bank, which makes money by lending right people for right purposes
for right time for right return.

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ACCOUNTS DEPARTMENT
This was also the important department of bank. It covers all
transactions, which are being, taken place in the bank. In this
department

mainly

accounts

are

maintained

with

following

statements.
Daily condition report: Which presents the assets and liabilities
of the bank in one-day position?
Inter-branch posting reconciliation report: This also covers the
originating and responding transactions of the banks activities.
Accounts department also prepares monthly statements, which are
obligated to be submitted to the head office, statement of tax
deduction from suppliers, statement of provident fund etc.

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COMMUNICATION DEPARTMENT
The main functions of this department were to impart information to
every concerned department, to get information from external
resources, to accept daily mail, to fetch every information outside the
bank through phone, telex, fax machines etc., this department some
times deals with the bank account statement which is normally
required by the account holders.

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REMITTANCES DEPARTMENT
One of the most frequently utilize / services is transfer of funds or
remittance through banking channels although the products of
remittance department are very common and elementary, it is
extremely important that these products are handled with a high level
of efficiency in terms of the speed, accuracy, surety of security and
conformity with SBP regulations speed and accuracy is required to
ensure efficient and timely service to the customer and proper
execution of the departments responsibilities. Security considerations
are important to product both the customers confidentiality and the
banks interest. Awareness of and conformity with laws is essential
since a contract or agreement to provide remittance services to the
customers entails creation of legal obligations, e.g. That of trust or
agent and principal in case of telegraphic / mail transfers.

DEMAND DRAFT:
A demand draft is basically a bill of exchange; it is an order to pay
money drawn by one office of a bank upon another office of the same
bank or upon office of a different bank. When it is drawn upon another
office of the same bank, it is covered under section 85 of the
negotiable instruments Act 1881. However when it is drawn upon an
office or branch of another bank it is considered as a bill of exchange
under section 05 of the same Act.

TELEGRAPHIC TRANSFER / MAIL TRANSFER:

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It is the most rapid mode of transaction of money. It is quicker than

demand draft. It is very reliable and safer mode of funds transfer.

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PAY ORDER:
Pay order is also called bankers cheque drawn upon the issuing
branch itself. Though an order instrument which means transferable.
It is not negotiable and therefore banks tend to cross the instrument
Account Payable only to avoid the possibility of dealing with
instruments with forged instruments.

TRANSFER OF CHEQUES:
This function includes the transfer of Cheques drawn on the same
branch. One accountholder wants to transfer his amount to another;
he will give him a Cheques. The cheque holder will attach with the
paying slip, which is duly filled with his account number, then he
deposits on the counter. The bank transfers the amount from one
account holders account to anothers but condition is that amount
should be in credit of his (customer on which amount is drawn)
account otherwise cheque will be returned next-day. This usually
happens when some persons are given salaries from their employer.
So they are given Cheques of employer and they want amount to be
transferred in their personal account.

COLLECTION OF CHEQUES:
This is also the routine activity of the bank. Some type of Cheques,
which are received by the officer for the collection purpose. Collection
of Cheques may be of two kinds, i.e. outward bill of collection (OBC)
and inward bill of collection (IBC). These Cheques are drawn on UBL,
HBL, NBP, MCB or other local as well as foreign banks of Pakistan.

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INWARD BILL OF COLLECTION (IBC):

When Cheques are received for the banks of local region, i.e. Lahore
then collection of them would be called inward bill of collection. It is
the job of bank to receive money from respective branches of the bank
through correspondence of mail etc. when the bank receives IBC, then
amount is credit to the bank sent IBC.

CREDIT DEPARTMENT
This department is very gist of all departments. It deals with
numerous activities, which give a good financial support when
officials of this department invest money of depositors into feasible
projects by lending loans to various business concerns. As the core
activity of Commercial bank is to provide short-term finance, which is
mostly for working capital requirements. As business concerns have
money to complete the one production cycle, but it is not necessary
that amount would be received just after sale, but credit sales are also
made. So to finance next production cycle they obtain loans from
commercial banks on short-term basis, for continuity in operations.

FORMS OF LENDING
In credit department of BAL, various forms of credit are offered to
different clients.
Following are the main forms of lending:

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 Cash Credit
Running Finance
Term Finance
Purchase and Discounting of Bills etc

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I) Cash Credit (PLEDGE):

In this form of lending, cash is required to keep as a security. This
form is less risky than others. Because bank is fully equipped with
cash. Mostly this is used for very special purpose like; payment to
exporter for the goods delivered. Below are mentioned core features
of the cash finance.
II) RUNNING FINANCE:
Running finance is most popular sort of credit facility given to clients.
This

is

mostly

obtained

for

the

purpose

of

working

capital

requirements. Client can draw money even daily from the account but
not more than the limit (BAL normal limit was up to 1,000,000/- (one
million) that can be drawn by him). In running finance, it is not
necessary that security would be in the possession of bank, but all
important documents of stocks, property etc, are in its possession.
III) TERM FINANCE:
This credit facility is also required for working capital requirements.
This is the same like running finance but difference is that in this term
finance, disbursement of amount is in once a time.
Beside, time limit for term finance is 1 year to 10 years; payment is
made in the form of installment which can be on monthly, quarterly,
half yearly, yearly basis. Markup is received on quarterly basis. It is
important to note that markup should be received on that specific
time, if he does not pay principal account on that date.
IV) PURCHASE AND DISCOUNTING OF BILLS:

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This is also a unique type of financing. Bank purchases the bills from
its own client at lower value but when bills are discharged, and then
amount received will be more than that purchased value. This is
mostly happened in case of export and import transaction. In addition,
markup on these bills is received at the time of purchase or
negotiation.

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SWOT ANALYSIS OF NBP

STRENGTHS
Finance plays a role of life blood in the development and
prosperity of and Organization. The financial statements of the
bank shows that the banks financial position is very strong and
there are maximum chances of rapidly increase in it. The
Earning per share has been increased on a rate of about 50%,
which is a very positive sign.
The bank has highly qualified and skilled workforce and it has
succeeded to attract the best banking professionals from across
the country due to its growing pace and sound reputation.
Due to the having intention of handling and maximizing foreign
investment the govt. is fully supporting the bank management
due to its policy to maximize the foreign investment in the
country, to get the economic prosperity.
National Bank of Pakistan is now the highest Growing Financial
Institution of Pakistan. And playing a very important role in
development of the economic conditions of Pakistan.
Due to its strong financial position the bank has undergone a
huge expansion plan to compete with the existing bank all over
the country and with the passage of time the branch network is
expanding at a very good pace.

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WEAKNESSES
It is observed in the branch that as compared to huge business
the bank is dealing in, the no. of employees is lesser and thus
there is an increased workload on the employees. Due to this
the efficiency of the employees is reduced. Due to this issue
here is a chance that employees may not be like their work.
There are many processes to evaluate the performance of the
employees but It has been observed that employees are less
motivated and dont like to work hared. Its also a big draw back
of the Organization.
OPPORTUNITIES
Due to increase in the overall activity of Business in all over the
country. In housing and textile industry there are various types
of Mega Projects so, the bank has a great opportunity to finance
these projects at very profitable term.
The basic income for a bank is the difference of rate of interest
by which it deposit and by which it lends to others. And
Pakistani nation gives first preference to fulfill their funds
requirements by getting loans from banks. Thus there is a very
good scope for the bank to run successful business in such
circumstances.

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THREATS
There are many factors of uncertain position of the economy.
Such as political uncertainty, WTO, increase in poverty etc. As a
result there are permanent threats of future risks and losses for
the bank. And we all know that due to these factors many
investors hesitate to invest in the Pakistani business.
The inflation rate of the country has gone above the 20%. This
can result into an unfavorable situation for the bank. So, it is the
responsibility of State Bank of Pakistan to control the rate of
inflation which is now at a very dangerous level.
There is also a threat imposed by the competitors by introducing
new technology and it is necessary for National Bank of Pakistan
to adopt new technology.

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LEARNING AND EXPERIENCES

I found this internship program very helpful to increase my knowledge
and skills required to perform his duties as an employee. The
following activities I performed during my internship program at
National Bank of Pakistan Shah Pur Kanjra Branch.
General Banking Department
In the general banking department I learned and practiced the
following tasks:
Account opening procedures
Basic requirements for opening an account
Documents required for account opening
Verification of the documents
Minimum Initial deposit and minimum balance requirements
Signature Specimen Card (SS Card)
Procedure of account closing
Check book request and issuance procedure
Term deposit and Govt. Payment
As a worker of that position I performed the following set of tasks.
And obtain the following knowledge required to perform such type of
duties.
The process of filling credit slips.
The method of filling Deposit slips.
The process of evaluation pensions regarding methods.
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 The process of giving pays to the Govt. employees.

The scrolling of utility bills.
The scrolling of pensions.

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Credit department
By working with credit department I acquired following set of
Types of securities
Filing of the credit application
Obtaining of Legal opinion
Analysis of the financial position Of the customer
Preparing The credit proposal
Fulfillment of the terms and conditions
Issuance of the credit facility
Reporting to the head office and to the State Bank
Issuance of demand draft
Types of limits

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RECOMMENDATIONS AND SUGGESTIONS

It is a good sign that the profit after tax is increasing rapidly but
administrating expenses have been increased by 49%. So the
level of administrating expenses should be controlled to
maximize the earning of the National Bank of Pakistan.
The management has revalued its fixed assets in order to fill the
gap of profit shortfall. The management should focus on its
business operations and such non-operating tactics should be
avoided.
The earning per share (EPS) has shifted from 8.53 to 12.28 from
2008 to 2009. Which can result into the increasing the
confidence of shareholders. The concrete steps should be taken
in order to rapidly increase the EPS of the organization.
There

is

need

to

create

friendly

and

cooperative

environment for the customer. I found a little bit lack of this

aspect in the organization which is a very big draw back for the
organization.
The number of employees should be increased and the
allocation of work activities should be made in such a way that
the workload over the employees decreases.
Here is also a need of using the methods of Performance
appraisal with in the organization. Because I found during my
internship and also come to know having chat with the
employees that employees are less motivated. They should be
given financial and non-financial incentives and the salary
increments should be made purely on merit basis.
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REFERENCES
www.nbp.com.pk
www.sbp.org.pk
google.com
wikipedia.com

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