Mohammad Ali Jinnah University




Dear Sir, Here is the semester report you had asked on management practices.I have tried my level best to meet your requirements as instructed and hope that it will match the standards. I have compiled this report based on my experience over the last six months at National Bank of Pakistan. My methods include constant observation of daily routine work of the entire office, continuous communication with managers, visiting managers and specially the Regional heads and taking down notes during meetings and trainings. I have also tried to gather some information from employees in the different branches of NBP. I have tried to cover all the relevant topics that were taught during this semester. As a student of MBA I have found this report very helpful as it has substantiated my professional skills and expertise. Regards, Altaf Magsi FA09-MB-0012.


1 INTRODUCTION««..««««««««««««««««««««4 RANGE OF PRODUCTS...................................................5 MISSION, VISION AND VALUES««««.«««««««««««......5 GOALS««««««««««««««««««««««««.5 AWARDS & ACIEVEMENTS««««««««««««.6 PRODUCT DESCRIPTION«««««««««««««««.7 2 FUNCTIONS PERFORMED BY NBP««««««««««««.«8 ACCEPTING DEPOSITS«««««««.««..9 ADVANCING LOANS««««««««««««««««««.10 PAYMENTS OF CHEAQUES«««««««««««««««««««..11 PAYMENTS OF PENSIONS««««««««««««««««««««..11 3 CULTURE & ENVIRONMENT OF NBP.................................................................................11 ORGANIZATIONAL CULTURE«««««««««««««««««««««..11 STRATEGIC TOP MANAGEMENT««««««««««««««12 INDUSTRIAL POLICIES......................................................................................«...15 LENIENT POLICIES WITH CLIENTS«««««««««««««.15 YOUNG BLOOD««««««««««««««««««««««««..15 4 HUMAN RESOURCES«..«««««««««««««««««««..««...15 HR MISSION««««............................................................16 JOB OPPORTUNITIES««««««««««««««««««..««...17 HR EVENTS«««««««««««««««««««..«««17 EMPLOYEES COMMUNICATION PROGRAMS ««..«««««««18 STRUCTURE OF HR DEPARTMENT«««««««««««««..«««««.18


25 PROMOTIONS««««««««««««««««««««««28 DEMOTIONS«««««««««««««««««««««««29 RSIGNATION & RETIREMENT««««««««««««««««««««««««.31 ORGANIZATIONAL HIERARCHY CHART«««««««««««««««.23 PERFORMANCE MANAGEMENT«««««««.«««««««««.5 PLANNING & FORECASTING««««««««««««««««««.32 MANAGEMENT AND ORGANIZATION««««««««««««««33 4 ....22 PLANNING PROCESS IN NBP«««««««««««««««««««.21 ORGANIZATIONAL STUDY.30 HIERARCHY OF NBP STRUCTURE«««««««««««««««««.29 7 THE HIERARCHY«««««««««««««««««««««««.23 6 ORGANIZATIONAL CAREER MANAGEMENT «««««««««««...«««««««««««««.

corporate entities and government. Tashkent. The Bank's services are available to individuals. National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre abroad. Its subsidiaries are Taurus Securities Ltd. corporate investment banking. First Investment Bank and NAFA. The Bank's joint ventures are. United National Bank (UK). Chicago and Toronto. Kazakhstan. NBP Modaraba Management Company Ltd. The Bank has representative offices in Beijing. agricultural financing. 5 . It has agency arrangements with more than 3000 correspondent banks worldwide. Its balance sheet size surpasses that of any of the other banks functioning locally. as a corporate citizen. NBP Capital Ltd. Almighty.INTRODUCTION TO ³NBP´ National Bank of Pakistan is the largest commercial bank operating in Pakistan. retail and consumer banking. 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. 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. It has redefined its role and has moved from a public sector organization into a modern commercial bank. and CJSC Bank. NBP Exchange Company Ltd. an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore).

business and industries. More recently it has started Electronic Home Remittances Project. self employment scheme for unemployed persons. NBP Kisan Dost. NBP Cash n Gold It has implemented special credit schemes like small finance for agriculture. Some schemes have been specifically designed for the low to middle income segments of the population. NBP Saiban.Range Of Products National Bank of Pakistan is today a progressive. NBP recently initiated the Annual Awards for Excellence in Literature . 6 . in policies and procedures. efficient. These include NBP Karobar. For the promotion of literature. public transport scheme. It has developed a wide range of consumer products. adoption of Capital Adequacy Standards under Basel II framework. It has provided generously to philanthropic causes whenever the need arose. This project introduces technology based system to handle inward remittances efficiently. A number of initiatives have been taken. Patronage from NBP would help creative work in the field of literature. administrator to Qarz-e-Hasna loans to students. changes in the field structure. NBP Advance Salary. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. in internal control systems with special emphasis on corporate governance. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. in the upgradation of the IT infrastructure and developing the human resources. and customer focused institution. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. to enhance business and cater to the different segments of society. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. in terms of institutional restructuring. The Bank is also the largest sponsor of sports in Pakistan . by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt.

o Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate. o Maximizing stakeholders value. VISION AND VALUES y MISION: o Institutionalizing a merit and performance culture. international best practices and social responsibility. o We will be respected and admired for the way we work and be seen by everyone (clients and staff) to have made a tangible and positive contribution to their success in business. o Creating a distinctive brand identity by providing the highest standards of services. y VISION: o To be recognized as a leader and a brand synonymous with trust.MISSION. highest standards of service quality. 7 . o Adopting the best international management practices.

8 .y VALUES: ‡ Highest standards of Integrity ‡ Institutionalizing team work and performance culture ‡ Excellence in service ‡ Advancement of skills for tomorrow¶s challenges ‡ Awareness of social and community responsibility ‡ Value creation for all stakeholders y GOALS: To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.

Awards & Achievements y Best Foreign Exchange Bank 2008 awarded by world's leading financial journal Global Finance y Best Return on Capital for 2006 amongst all Banks in Asia . London . NBP Product Descriptions y NBP Premium aamdani y NBP Premium saver y NBP Mera Apna Karobar NBP Saibaan y NBP Advance salary y NBP Cash card y NBP Investor advantage y NBP Cash & gold y NBP Kissan dost y NBP Pak remit y NBP Protection Shield 9 . London. y Bank of the Year award for the year 2004 by the world renowned The Banker magazine owned by the Financial Times Group .Pakistan award for the year 2005 by world's leading financial journal Global Finance y Bank of the Year awarded for the year 2005 by the world renowned The Banker magazine owned by the Financial Times Group. -Banker Magazine in July 2007 y Best Foreign Exchange Bank ± Pakistan award for the year 2006 by world's leading financial journal Global Finance y Best Bank .

‡ The customer will pay markup @ 6% p.a. 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.000/-* ‡ Free NBP Cash Card (ATM + Debit) ‡ Convenience of NBP Online Aasan Banking (for online banking customers) ‡ Two debit withdrawals allowed in a month & no limit on number of ‡ deposit transactions ‡ Profit calculated on monthly and paid on half yearly basis y NBP Mera Apna Karobar ‡ Minimum down payment.25% p.& a maximum balance of Rs.000. 20..001/.000/‡ Age 18-45 years ‡ Mark-up (variable) 1 year KIBOR + 2. ‡ Minimum deposit of Rs. 200. 20. Pay Order and Cheque Book* ‡ Convenience of NBP online Aasan Banking (for online banking customers) ‡ Free NBP Cash Card (ATM+Debit) ‡ Running finance facility up to 90% y NBP Premium saver(PLS Saving Account) ‡ Earn up to 7. 5.y NBP Premium Aamdani(Monthly Income Scheme) ‡ Earn up to 11% p.a. 300.00% p.a.and a maximum deposit of Rs.a. rest will be borne by GO ‡ Life & disability insurance paid by GOP* 10 .000/for 5 years ‡ Free Demand Draft. ‡ Minimum saving balance of Rs.000/.

y NBP Saibaan (Home Financing) ‡ Home Purchase ‡ Home Construction ‡ Home Renovation ‡ Purchase of Land + Construction ‡ Balance Transfer Facility (BTF) y NBP Advance Salary(Personal Loan) ‡ Easy installments of 1 to 60 months at your choice ‡ No minimum income collateral & insurance charges required ‡ Quick processing and fastest disbursement ‡ The product is for permanent employees of Government.000/. y NBP Cash Card(ATM + Debit Card) ‡ Use it as an ATM in any of the ATM¶s in Pakistan ‡ Use it as Debit Card in any of the outlets with ORIX POS machine ‡ Cash withdrawal up to Rs. Semi Government and Autonomous bodies receiving salaries through NBP accounts. 20.per day ‡ Account Balance Enquiry ‡ Mini Statement (Only at NBP ATM) ‡ PIN Change facility (Only at NBP) 11 .

14.y NBP Investor advantage (Financing Facility for Stock Investors) ‡ Comfortable environment for trading ‡ No security requirement. except for the customer¶s equity ‡ Customer¶s equity freely available for investment ‡ Equity acceptable in cash or approved shares y NBP Cash & gold (Ready Cash Against Gold) y y y y y Facility of Rs. 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 y NBP Kissan dost(Agriculture Farming Program) ‡ Competitive mark-up rate ‡ Quick & easy processing ‡ Delivery at the farmer¶s doorstep ‡ Technical guidance to farmers ‡ Wide range of financing schemes for farmers ‡ Finance facility up to Rs. gold ornaments and paper security ‡ Loan facility on revolving basis for three years (renewable on yearly basis without documentation and approval) 12 . residential/commercial property.for landless farmers against personal guarantee ‡ Financing available against pass book. 500.000/.

g. Earthquake. This service is available to U. Flood. y Remitters in USA can log on to our user friendly website. y y NBP Protection Shield (Personal Accident Insurance) ‡ No documentation ‡ No medical required ‡ Premium Auto Debit facility & choice of deactivation ‡ Coverage includes death due to: ‡ Natural Calamities e. bank or a US Dollar credit or debit card in order to remit funds through this channel. Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well. Cyclone etc. residents for sending money to their family and friends in Pakistan. www. in a matter of and easily remit funds to Pakistan from the comfort of their homes.S. One must have a valid US Dollar account with a U. ‡ Accident ‡ Riots* ‡ Civil Commotion* ‡ Strikes* ‡ Acts of Terrorism* 13 . 7 days a week.S.pakremit. y The service is fully secure with advance encryption application and is available for use 24 hours a day.y NBP Pak remit y Pakremit is an internet based Home Remittance Service.

D. account. which are as follows: Saving Account. employees is paid by NBP. employees is first credited to the account of NBP and is then credited to there personal accounts. and semi govt. y Salary Management of Different Governmental Institutions: The salary of govt. 14 . y Advancing of Loans: Different types of loans are granted to different type of people and industries these include: o Running Finance o Over Draft o Demand Finance Gold y Payment of Cheques: Cheques drawn against various deposits are honored and paid in cash. Fixed Deposits & N. provincial Govt.FUNCTIONS PERFORMED BY NATIONAL BANK OF PAKISTAN To fulfill the basic objectives of socio-economic nature the bank perform following important functions: y Accepting Deposits: This function is performed by the bank by opening of the different type of accounts. as a govt.P.B.I. y Payment of Pensions: This function is performed by N. and semi Govt. treasurer all the pensions of federal govt. Current Account.A.

y Issue Guarantee And Indemnity Collection Of Negotiable Instruments y Act As Income Tax Advisor y Act As An Agent Or Representative Of His Customer 15 .y Issuing Traveler¶s Cheques: The traveler¶s cheques are issued by NBP for secure transfer of money from one place to another. y Transfer of Funds from One Place to Another: Money is transferred from one place to another by different means like Bank Draft. revenues are collected by NBP in the form of chalans . Mail Transfer Telegraphic or Telephonic Transfer Travelers Cheques y Collection of Chalans: Various Govt. y Collection of Fees and Money from People Proceeding on Hajj Pilgrimage: National Bank collects the fee from the people proceeding for hajj and act as there agent. y Collection and Sale of Prize Bonds: The national prize bonds are purchased and sold at the branches of the NBP according to the rules formulated by the SBP. without charging any commission.

But it has adopts lenient way in dealing with them. Industrial Policies: NBP helps the government on the implementation of its industrial policies with respect to economic growth of the country. The employees take the organizational problem personals and try their best for the prosperity of the organization. it helps its customers in the repayment making rescheduling and restructuring of their loans. Lenient Policy with the Clients: This is one of the best policies of NBP that it does not kept rude behavior with this client if they make late in their repayment of loan. They have created loyalty toward the organization by deviating their future efforts and energies. 16 . Employees has created a very cooperative environment among each other.NBP¶s CULTURE & ENVIRONMENT Organization Culture: NBP's organization culture was very friendly and interesting. 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. 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. Currently the NBP Chairman and as well as President S. Ali Raza Sahid he is the person who has saved the life of the organization and contributed a lot. Strategic Top Management: Fortunately NBP has got from time to time best top management.

HUMAN RESOURCES y Introduction: NBP is the employer of choice. The whole NBP family comprises of committed and dedicated members with passion to serve in their respective functional areas. The Bank has absolutely open culture where members share and communicate freely. The Bank has challenging work environment where merit and performance help the individuals to explore their true potential. As a caring employer the Bank enables the employees to excel and grow in highly congenial employment conditions and culture.Young Blood: NBP has young generation aged 27 to 30 graduates that would be helpful to maintain the quality of their service by hiring new graduates but also would be helpful changing the overall culture of the organization. y Job Opportunities ‡ Management Trainees y Professionals Training Developments 17 . y HR Mission: Provide more talented Human Resource in all NBP functional areas in relation to competition keep motivated all the employees and maintain total industrial harmony. The career path is full of challenges and opportunities.

It also helps the organization to get the employee feedback on important matters. Gujranwala . Gujrat. Mardan. y Employee Communication Programme: Employee Communication is considered a vital tool for employee motivation and promoting their commitment and loyalty with the organization. Sialkot . prudential regulations. Jhelum . customer service requisites as well as technological developments particularly automation in banking functions. Karachi West. Hyderabad . Employee Communication Program has been developed to keep our employees informed about the Bank's products and services. Bahawalpur and Regional Audit Office Lahore . compliance of standard procedure and regulatory requirements. Lahore East. o Staff College Peshawar : Peshawar . D . Sargodha . Jhang. Larkana. Muzaffarabad. Quetta and Regional Audit Office Karachi o Staff College Lahore : Lahore Central. Sukkur. Faisalabad . Gwadar. Rawalpindi . D.G Khan. Multan . o Staff College Peshawar : Islamabad . Mirpur. Abbottabad. system and controls. Gilgit and Regional Audit Office Islamabad .JNMDC: For Executive Development Programmes only o Staff College Karachi : Karachi South.I Khan. Sahiwal. y Sports and Culture: o NBP Sports Complex o NBP Cricket Academy y HR Events: o Conference o Female Empowerment Work shop 18 .

which operates to: o To Increase the skills of former employs o To Substantiate the proficiency of new recruits o To Compensate and supervise the employs 19 .Dialogue Sessions Quiz Programs STRUCTURE OF HRM DEPARTMENT y Departmental Hierarchy Vice President Human Resources Manager Total Compensation Manager People and Organizational Development Manager Labor Relations y HRM process in the organization National Bank of Pakistan has an existing HRM Department.

 Bottom-Up Approach: It is a forecast method in which each successive level of NBP. starting with the lowest and forecast its employees requirements in order to ultimately provide an aggregate forecast of employment needs.PLANNING & FORECASTING y Organizational Study o o o o To determine the organizational mission To Scan the organizational Environment To Set strategic goals To formulate a strategic Plan y Steps of Planning process in NBP o o o o To determine the objectives Defining skills required to meet objectives To Determine additional HR requirements To develop actions in order to meet the Anticipated HR needs y Forcasting  Zero Base Forecasting: This methods uses the NBP¶s current level of employment as a starting point for determining future staff needs for NBP. 20 .

regarding the career development of higher level employs. 21 .  Secondly. the training and development for the long term plan. regarding new and middle level employees.TRAINING & RECRUITMENT PROCESS y Employs recruitment and selection: Preliminary Interview of Selected Candidates Preliminary CV Screening by Software Entry Test & Initial Interview HR Interview Final Panel /Group Interview Selection & Offer y Training and Development: NBP has devoid two basic training techniques:  First is related to the training and development of mid term plan.

PERFORMANCE MANAGEMENT y Performance management: In the personal trait evaluation there are ten things: o Discipline & Punctuality o Initiative & Drive o Team Spirit o Intelligence o Honesty o Interpersonal relationship Skills o Creativity & Innovations o Flexibility o Loyalty & devotion o Fitness y Performance Factors: Also there are ten factors: o Professional knowledge o Improving Corporate culture o Decision making ability o Ability to visualize and plan o Ability to act in emergent situations o Ability to implement Decisions o Ability to guide and create team work 22 .  The training plan is started atleast two months before the commencement of New Year. In order to make it easy for socializing and orientation of new employees.  NBP believes in Pre-Post training test for existing employees and post training test for new employees. NBP applies on-job and off-job strategies to train its employees.  NBP training and development academy advises job rotation to ensure & facilitate the production of all rounder¶s.

o On the basis of evaluations benefits are offered in terms of promotions. rewards etc COMPENSATIONS & BENEFITS Different types of benefits include: o Base pay o Commissions o Overtime pay o Bonuses & Profit sharing o Stock options o Travel/Meal/Housing Allowances o Leaves o Medical benefits o Insurance o Retirement benefits 23 . he/she will be informed. so that he/she may correct/improve/rectify himself/herself for his/her weaknesses if he/she has any. HR department enter these reports into the database. o After finishing the annual confidential reports (ACR) in paper.o Communication Skills o Customer relationships o Acquaintance with technological improvements y Performance Evaluation: o An employee has not any right access to his/her annual confidential reports but.

y Resignation: o When an employee wants resignation. convicted by law. A person will be eligible for promotion if: o Satisfactory records of services o Meets the criteria for Promotion o Clear recommendation for promotion in his/her ACR. If there is any departmental proceedings underway against him/her or any penalty other than censure or warning has been imposed on him/her with in the last three years then the employ will not be promoted. o After an employ apply for resignation. If he fails to inform three months before then he has to pay the gross salary of three months. y Demotions/Expulsions: The organizational rules are set and handed over to employees during the joining process: o The person is demoted to lower rank if the performance required remains same for the 3 years o Sometimes persons are not demoted but higher post may be created in the organization to change the status quo of demoted employee. fraudulent activities. he has to apply in HR department. o The person may be expelled on the course of bad conduct in law. the HR department will query all the branches that either the employ has any transaction with any 24 .ORGANIZATIONAL CAREER MANAGEMENT y Promotions: The criteria for Promotions to a specified post are usually merit-cum-seniority. He should notice HR department three months before the resignation.

o Normal retirement Procedures apply. SWOT analysis of NBP y Strengths: Financial strengths High percentage of Gross profits Large number of branches Govt. o Line manager arrange informal meeting with the employ to discuss plans and confirm right to request continued working. y Retirement: o HR department will write to employee CC line manager advising retirement date. o Employee chooses to retire at 65. support image Huge assets o Large number of Govt. On approval from all the branches the head of HRD approve his/her resignation which is then sent to the employees Branch manager. o Line manager writes to employee confirming meeting CC HR.branch or not. deposits o o o o o y Weaknesses: o o o o o o o Traditional approach Lack of IT infrastructure Burden of running Extra branches Lack of modern banking products Low number of online branches Inside recruitment (not on merit) Weak customer Handling 25 .

deposits Ignoring customer needs Fail to float new products successfully NBP¶S HIERARCHY CHART y Hierarchy of NBP¶s Structure: President Board of Director s Member Executive Board Regional Chief Zonal Chief Branch manager 26 .y Opportunities: o Electronic banking o Micro finance y Threats: o o o o o o Retail banking overload Administration cost Financing cost of new projects Focusing only on Govt.

T Investment & Treasury Audit & Inspection Internal Div.y Organizational Hierarchy Chart: CEO Corporate Banking Dept Foreign Trade Departments Credit Sanction Dept Credit Administration Dept Human Resource Dept Operations Accounts Finance I. & FTPC Agriculture Administration 27 .

28 . Since there are no private shareholders. the bank has appointed regional chiefs also. three are in Punjab. secretary and 6 other members of the board are appointed by the federal govt.MANAGEMENT AND ORGANIZATION OF BANK Board of Directors: In the management of the bank the board of directors is at the top of the controlling bodies.The president being the chief executive controls the affairs of the bank. There are 7 regional head quarters of the regional chiefs of the N. The board consists of a nominated president. Executive Board: It is also called the management committee. so there is no general meeting of shareholders and no directors are elected. and two are situated in Sindh. The president. a secretary and 6 other members.P one is in Baluchistan.W. After nationalization in 1974 most of the powers have been transferred to the executive board . He manages and controls the affairs of the bank.P one is in the N. The president holds the office at the pleasure of the federal government.B. The general direction and supervision of the affairs of the bank lies in their respective executive boards. Regional chiefs: In order to improve the performance of the banking system. The regional chief has the powers of sanctioning finance and other credit facilities. Chief Executive: The president is the administrative head of the bank.F.

They hold the post of VP or AVP and administer these zones.P has 37 zonal offices in Pakistan. The control and supervision of each branch is mostly entrusted to AVP or officer of grade II. Branch managers: Each zone is then sub divided into a no.Zonal Chiefs: Each region is divided into number of zones.N. 29 . of branches.B.

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