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CHAPTER # 01

1. INTRODUCTION

The National Bank of Pakistan is a Commercial Bank and transacts all types of Banking Business. The National Bank of Pakistan was established on November 29, 1949 as a semi public commercial bank.

The Bank has the distinction of acting agent of the State Bank of Pakistan and operates treasuries where the State Bank of Pakistan does not have any office.

The Head Office of the Bank is at Karachi. Ever since its establishment in 1949 it has been leading Commercial Bank of the nation, sole agent of the Government of Pakistan’s batter trade with countries and of State Bank of Pakistan for the Government Treasury.

It has offices at all the major financial centers of the including at pride places likes 100 wall streets, New York and

United

nations

Plaza.

Its International net-work

includes

Branches at Bahrain, Cairo, Paris, Frankfurt, Hong Kong, London, Washington D. C of shore banking unit at export processing zone. Karachi and representative offices functioning at Beijing and Seoul.

In Pakistan, the bank provides complete bank facilities to the people at over 1436 Branches operating even at the far lug Northern Areas. National Bank of Pakistan is the first bank in the country to introduce and implement

supervised Ruler Credit Programmed help small farmer to obtain loans at his doorsteps on easy terms and conditions. It has also played a pioneering role in introduction of profit and loss sharing System (PLS) as a major towards Islamization of economy.

In addition to the normal business operations the bank provides special loan facilities for higher education for studies abroad and Qarz-e-Hasna to deserving poor students of Medical and Engineering Colleges in Pakistan. The well equipped research department to work on the cdeveloping

tredns of finance and banking, besides a very well managed library at the Head Office.

The banks carry on its business through a wide network of branches locally and internationally. These branches execute their function under the supervision of local Regional Offices and regional offices are supervised by the Head Office located a magnificent building in the heart of Karachi’s center.

In the forty five years that have followed the bank has made remarkable progress testifying to several things.

It is now extending the operations of the Bank to all branches to Banking, to commerce, to industry to trustee services as well as to agriculture and to the need of the small or big businessman.

It has rapidly advanced from an institution with restricted power to the biggest commercial banks in the country it also shows it soundness of the policies that the bank has pursued in the execution its tasks.

The National Bank has lead the trial in this respect, other banks have followed it. The National Bank has great contribution towards building wide Banking structure in

Pakistan and serving all aspects of the National life and all classes of society.
Source: http://www.nbp.com.pak

2.

HISTORY AND MANAGEMENT OF N.B.P

The story of National Bank of Pakistan is part of Pakistan’s struggle for economic independence.

When, National Bank of Pakistan came into existence in November 1949, the country was facing a severe economic crisis originally, the intention was to set up this Bank some time in early 1950, but the critical situation that developed in the jute trade as a result of India’s refusal to accept the exchange rate of the Pakistan Rupee, following the devaluation of its own and the sterling functioning Dacca and opend its

offices at five important jute centers namely Narayanganj, Chandpur, Rangpur and Khulna, in the East Pakistan.

The Bank advamced large sums of money to the agents of the newly established Jute Board and gave much needed help to the market. The crisis was averted, the jute growers received a fair price for the produce and the country earned the foreign exchange it would have otherwise lost.

Again, in 1950 following

the outbreak of war in

Korea, Cotton prices shot up to unprecedented levels and the credit facilities available for financing the movement of the cotton crop fell far short of requirement.

The National Bank of Pakistan came forward to establish its offices in the Cotton growing areas and extended credit facilities liberally in order to restore stability to the market. In 1951, the country was once again faced with a crisis in the cotton trade when prices was crashed and touched the lowest level since independence following the cessation of hostilities in Korea. The bank in collaboration with the cotton

board provided the necessary Credit facilities to the trade and the crisis was tided over.
Source: http://www.nbp.com.pak

Another important event in the early history of the National Bank of Pakistan was taking over the agency work of the State Bank of Pakistan in 1952, for transacting Government business and managing currency chests at places where. The Bank of Pakistan did not have an office of its own. In 1962, the agency arrangement was extended for further period.

Prior to nationalization, a Central Board of Director governed the bank which consists of a managing Director appointed by the Central Government, nine directors elected by the shareholders and the three directors appointed by the Central Government. The President of the Central Board was appointed by the central Government amongst the Director.

Consequent upon nationalization, the Central Board disclosed and in its pace an Executive Board consisting of president , who is the Chief Executive and four other member

were appointed for General direction and superintendence of the affairs and business of the Bank.
Source: http://www.nbp.com.pak

The general direction and superintendence of the affairs and business of the bank vests in this executive board. In 1980, the Federal Government constituted a Board of Directors comprising the president, five member of the

Executive Board of the Bank one nominee each of the Pakistan banking council and the ministry of Finance. All nationalized commercial banks are controlled via the Pakistan Banking Council, being to State Bank of Pakistan regulations as well. The Federal Ministry responsible for Bank operations is the Ministry of Finance.

3.

OBJECTIVES OF NATIONAL BANK OF PAKISTAN

The main objective of National Bank of Pakistan has been to include and spread banking habits among the people mobilize their savings and thus make and ever increasing contribution to the economic development of the country. It has all along pursued a policy of rapid development extending, its

facilities to almost every center of economic potential in the country. Its services have been increasing continuously and are being brought within an easy reach of the ever-growing number of people.
Source: http://www.nbp.com.pak/

To day it provides the largest network of offices in the country, 1436. Being in Pakistan and 22 aboard. It offers remittance facilities to almost every important center in the country to provide facilities to the traveling public the bank has introduced its own traveler’s cheque which are en cashable at a branch of the bank in Pakistan.

1.

FUNCTIONS OF NATIONAL BANK OF PAKISTAN

The National Bank of Pakistan a commercial bank generally makes advances for a period not exceeding one

year, except in case of small and medium industries for which advance may be made for a maximum period of five years. The bank makes not only against the security of stocks and goods hypothecated or pledged to the bank, but also against documents of goods and properly, shares are various joint

stock companies, Government securities, Insurance policies deposits receipts, etc. The margin, and rate of interest are determined by several factors including the type of security the size of loan and the integrity of the party.
Source: http://www.nbp.com.pak

The Bank is authorized to carry on kinds of banking business and is empowered to make loans. It has also undertaken special financing operations connected with

Government prices support scheme. The bank also gives advances loans, especially for agricultural products, such as cotton etc, It also safeguards the valuable articles of people. It also arranges training programs for Bank officials.

It caters to the needs of the trade, industry & agriculture, both in private & public sectors. It participates in procurement of seasonal crops e.g. wheat, rice, cotton, sugar cane, etc. It also provides credit facilities to small industrial units agriculture sectors as per credit mandatory targets fixed by the State bank of Pakistan.

PROPOSE OF STUDY

The main & primary purpose of this study is to fulfill the requisite requirements towards the completion of MBA (Hons) degree. In this connection every Student is Require undergoing an internship of six weeks in any business organization institution.

The business internship report is carried on to be familiarizing with actual working conditions in any organization by physical & practical participation in the business affairs.

For this, I went to the Regional & Head Office of National Bank of Pakistan & written report.

Secondly it is necessary for the Bachelor of Business Administration that after acquiring through knowledge, we should acquaint ourselves with the entire practical knowledge & experience, which we can only gain through visiting any Organization & Conducting a detailed study.

Thirdly, the purpose of this study was to gain good amount of confidence & to be come aware of the mechanism of National Bank of Pakistan by working dealing with officials of the Bank.

Finally, the purpose was to know how National Bank of Pakistan plays its role significantly in the development of financial & other industrial. There was an ample chance for us in this study for learning about financing and Banking development in Pakistan.

2.

METHODS OF STUDY.

For the preparation of this Internship report, I used two methods to collect data, first primary data collection and second secondary data collection.

In secondary data collection I interviewed different officers and officials. For this purpose, I paid many visits to National ,National Bank Bank of of Pakistan’s Pakistan Regional Fatima Office Hyderabad Branch

Jinnah

Road

Hyderabad.

In conduct interviews from head of the different department of NBP and all the information is collected systematically.

For this purpose, I prepared the questioner and asked all the detailed function and procure of their

departments.

I interiewed following incharges.

1. 2. 2.
3.

Mr. Kauro Khan Memon Mr. Ghulam Murtaza Baloch Mr. Naeem Ahmed Shaikh Mr. Saulat Hussain Mr. Sohail Ahmed

(Area Manger) (Incharge Advances) (Incharge F.E. Dept:) (Incharge Admin) (Incharge Inspection)

5.

6. 7.

Aijaz Hussain Rathore Jamshed Ali

(Export) (Export).

All above officers have fully cooperated with me and provided all the necessary information, which was required to me.

I have collected all the information by using both methods Primary & Secondary data. All the necessary and relevant information was systematically collected arranged analyzed for writing this internship report.

I am highly obliged to and thankful to all the above Executive and personnel of National Bank of Pakistan, who have provided all the assistance and enabling me for the preparation of this report.

3.

LIMITAIONS

During the course of study, I faced many difficulties in collecting the recent and accurate information.

There

are number of constraints encountered by

me. Some of them are as under:-

1.

The Bank fid not allow me to work practically in the bank, I was only bound to ask questions to their incharge officer.

2.

They gave me very limited period of time per day visit, which also caused some difficulties in obtaining adequate information.

3.

A good amount of information related to the books of account, which may be beneficial for me were not provided.

4.

The bank officials because of secrecy of the bank maters did not answer the number of question.

5.

The lower grade staff was not properly trained therefore they have been answered accurately.

6.

Majority of staff member have not give full attention and they were not interest to provide me the functional and other operation details, except some officers who provide me full assistance.

Instead of

all these difficulties, I have completed of earlier

this work due to full cooperation and assistance mentioned officers.

CHAPTER # 02

INTERNAL FEATURES OF NBP
MANAGEMENT AND ORGANIZATIONAL STRUCTURE

1-

MANAGEMENT AND HEAD OFFICE MANAGEMENT

Among seven member of group Chief Executive is called the President. The Bank also has directors for

superintendence and direction of its business. The members of board consists of President. Who is Chief Executive and six other directors as members appointed by the government.

The member of Board responsible for granting loans in the field likes agriculture industry, housing and import export trade and to make the policy of the Bank.
Source: The information about this chapter given by Soulat Hussain (Admin. Manager)

A-

Organization and Head Office Management

In the National Bank of Pakistan’s head office, there are sixteen 16 separate division to deal with all the necessary problems separately, on the top of all these divisions.

The details about these divisions are as under

International Division.

This is again sub divided into 2 divisions.

1. 2.

Foreign Exchange and operation division. Administration and Credit division.

An Executive Vice President also manager these divisions separately. Finance and investment division

(Economic Research & Cooperate Planning)

A Senior Executive Vice President also manager these divisions and this section contains two divisions.

3.

Finance and Investment Division.

This division is further segmented into different wings and a senior vice president looks after every wing.

(a) (b) (c) (d) (e) (f)

Investment & resources wing Accounts, Planning & Budgeting Wing Govt: Debit Management wing. Publicity and Public Relation Wing Editorial Board Quami “Banker” Wing Reconciliation Wing

4.

Economic Research and corporate Planning

division.

This division does the work of economic research of the country. This division is also managed by an Executive Vice President.

Administration,

Computer

and

Human

Resources

Development Division.

From the name it is clear that is consists of three divisions namely.

5.

Administration Division This division is also divided into Establishment Wing,

Staff Relation, Central unit fraud and forgery and regulation wing, Personal Wing and Personnel career planning wing.

6.

Computer Division.

The division consists of computer wing and EDP audit, and procedure and administration wing.

7.

Human Resources Development Division.

This division supervises all the staff colleges, at Karachi, Islamabad, Lahore and Peshawar.

All

the

above

division

supervised

and

under

controlled by and coordinates under a Senior Vice President.

8.

Audit and Inspection Division.

There are two wings working under this division, which is.

(a) (b)

Implementation Wing Regional Audit Chief.

This division deal with audit inspection of sub-ordinate offices

2-

LAW, RECOVERY, LITIGATION DIVISION.

There are two divisions, which take part in this section.

9. 10. 11. 12.

Law Division Recovery & Litigation. Customer Service Division. Engineering & Maintenance Division

13.

Business Promotion and Marketing Division.

Credit Processing & Monitoring Corporate Credit Division. Two divisions are joint together in this section they are.

14. Credit processing & Monitoring Division.

This division is distributed according to different areas.

(a) (b) (c)

N.WF.P & A.K Sindh Balochistan Area Wing. Karachi Area Wing Special Credit Cell and Punjab Area Wing.

15. Corporate Credit Division/Credit Policy Division.

This division segregated into two sections, to deal them separately.

(a) (b)

Co-ordination section . Agriculture Financing Section.

b).

Field Management and Organization.

There are four executive to supervise the bank maters of every province, as they are called provincial’s chiefs. These Provincials Chiefs are responsible for the entire banking in their provinces such as income. expenses advances and deposits.

The Regional Chief NBP Balochistan Regional Chief NBP Punjabn Regional Chief NBP Sindh Regional Chief NBP N.W.F.P & Azad Kashmir.

These provinces are again divided into regions, the regions are controlled and management by regional heads, which are responsible for the supervision in their circles and

deal with the problem zones in their jurisdiction of Branches and Staff.

The country has been dividedm into 19 (nineteen regions) by NBP to ficilitate its functions.

Sindh Province 1. 2. 3. 4. 5. Karachi Region-A Karachi Region-B Main Branch Karachi Region Hyderabad Region Sukkur Region.

NWFP Province.

6. 7.

Peshawar Region Abbotabad Region

Azad Kashmir

8.

Muzaffarabad A.K. Region

Balochistan Province 9. Quetta Region .

Punjab Province

10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Lahore Region-A Lahore Region-B Main Branch Lahore Region-C Bahawalpur Region Gujranwala Region Sialkot Region Faislabad Region Multan Region Rawalpindi Region Islamabad Region .

These regions are also sub-divided into zones . The incharge of zone is called Zonal Chief.

3-

ORGANIZATIONAL STRUCTURE.

PRESIDENT DIRECTORS/ SEVPS
Procincial Chiefs/SEVPs

Regional Chief / EVP Zonal Chief / SVP Vice President Assistant Vice President Officer Grade-I,II,III
Source: Soulat Hussain (Administration Manager) Clerical and non-clerical staff

4-

DEPARTMENT FUNCTIONING UNDER N.B.P

NBP has seven main departments for functioning of which whole function of bank is depended or we can easy that all services are rendered through these seven departments.

These department are esplained with their headings are as under

a).

ADVANCE DEPARTMENT

Advance department receives the application from intending borrowers and submits the same application to the higher authority after processing for approval the advances can be of following nature.
Source: Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I) Source: Shafqat Ali Mahesar (OG-III) Source: Mr. Khadim Ali lund Baloch (OG-III) Source: Saeed Ahmed Khan

a. b. c. d. e.

Agriculture advance to farmers Short terms advance to business man Long term advance for setting industry Medium term advance for working capital Seasonal advance to cotton gingers Rice and sugar mills.

b).

REMITTANCE DEPARTMENT Bank promotes the facility of remitting funds within

the country and outside country within certain limits, Usually money remitted through Demand Draft, Telegraphic and SWIFT transfer. Always two parties are involved in this function one is receiver and another is sender. c). ACCOUNTS DEPARTMENT Accounts Department maintains the fixed deposits receipts of the depositor. Account department also keep income and expenses accounts. Account department prepares the weekly and daily statement of the affairs of the branch are first like a balance sheet.
Source: Altaf Ahmed (OG-III)

d). 1).

FOREIGN EXCHANGE DEPARTMENT. Imports We sell our foreign exchange to the other country

which is called such as we purchase the foreign goods from the others. Import is done through letter of credit (L/C) by the importer. Letter of Credit is an undertaking given by the importer bank to the exporter’s bank. 2). Export Export is to sell our goods to the other country and earn foreign exchange. The bank provide facilities of exporting the commodities to the manufactures of the goods of the country. 3). Foreign Remittance. The bank provides the foreign remittance facilities to the student studying aboard. Bank also provides foreign exchange in the shape of travelers cheques to the intending visitors.

Source: Syed Qamar Hashmi (Assistant) Source: Aijaz Ali Rathore, (OG-III) Source: Miss Razia (OG-III)

e).

CLEARING HOUSE DEPARTMENT The function of Clearing House department is to

pass the cheque presented by one branch of the bank to other branches of the banks. Clearing house is usually set up on the big cities and is control by the State Bank of Pakistan.

f).

CASH DEPARTMENT

Cash department is backbone of the branch., Cash department receives the cash from depositors and makes the payment to the cheque holder.

g).

MARKETING/BUSINESS DEVELOPMENT DEPARTMENT

Marketing Department is set up in the big branches in the commercial banks. Generally the main functions of the marketing department are as under. a). To introduce a valued client/depositors to the bank

branch. b). c). To bring a valuable business for the branch. To provide the financial facilities to the sound position

from the banks point of view. d) Marketing, department plays very vital role in increasing the savings of the bank. e). The development of the branch depends upon effective marketing system. f). Marketing department introduce institution among the

persons. Generally the manager of the branch deals himself in the marketing function.
Source: Rafique Arbaba (OG-II) Source: Syed Shah Nawaz (Assistant ) Source: Moinuddin Muallian (OG-III) Source: Mohammad Atiq Khan (OG-I) Source:Various Bank information circulars. No & Date N/A

CHAPTER # 03
ACTIVITIES OF NATIONAL BANK OF PAKISTAN

1.

COMPUTERIZATION

With a view to up grading and streamlining the working system of NBP and procedure plans were under taking by the management to provide microcomputer and electronic ledger. Card’s machines to the larger branches of a bank. This program will also be expended to the other smaller branches in coming years. Utilization of the bank’s mainframe computer at Head Office, which happens to be the most sophisticated amongst all the banks in Pakistan is also progressing to further upgrade the capacity of NBP in coming year.

2.

DECENTRALIZATION

Under the direction of the government, operation of all nationalized commercial banks were significantly centralized by setting up provincial head quarter at Karachi, Lahore,

Peshawer and Quetta, each headed by a member of executive board, enjoying vast power.

The banks policy of decentralization of financial sanctioning authority by delegation of powers to Regional and circle officers and credit committee, resulted in improving efficiency and prompt attention to the need of the customers on a country vide basic. Decisions had been quicker and service to client more rapidly and effectively available as a result to this policy.

This scheme, which has been well received by the business community and the various chambers will be

beneficial in quick disposal of credit facilities all provincial level and will also help in solving the problem and grievances of the customers more effectively. Service to clients will also be improved.

Source: Various NBP information circulars No: and date not available

3.

FOREIGN TRADE AND OPERATION

National Bank of Pakistan played an avtive role in handling the countries export and imports.

The growth of international business operations depends causally and expansion of foreign contacts. The bank already has 22 overseas branches in important business located areas of the world. The NBP also looking forward to open some new branches in foreign countries.

Errors

are

also

under

way

to

strengthen

out

relationship with banks in central Asia and to

establish joint

ventures with the bank of that area political and financial stability is restore. National bank will try to establish branches there.

PROGRESS IN ISLAMIZATION OF BANKING

After the introduction of profit and loss sharing scheme on a limited scale in January 1981. The Federal Government in 1984 announced a major policy decision that by the end of June 30 1985 all the domestic operated banks and financial institutions will be on NIB system. This objective has been achieved from 1st July 1985; all banking operations have been switched over to NIB system. In the final stage from July 1, 1984 saving deposits have been convert on profit and loss sharing basis from this date on words the bank is not accepting fixed period deposits on interest basis.

It should not be considered the end of the mission as mush more remains to be achieved . Until June 1985, none interest basis investment opportunities were more, while NIB liabilities were comparatively less. But now after complete switch over the reverse in the reverse in the position. But further continuous research and dedicated efforts are

necessary art national level so that Pakistan may present,

before the world a system which is really new, dynamic and in accordance.

Source: Soulat Hussain (Admin. Manager)

CHAPTER # 04
TRAINING AND FACILITIES TO STAFF

1.

TRAINING TO STAFF

In 1949, the first year of operations the NBP has one hundred employees one its payroll but with in two years this number had grown to 1505 by 1960 the figure has risen to 5023 and now in 1996 it is the order or 20694.

During the first ten years the NBP trained its own staff through a series of training programme both for junior officers and clerical staff. By 1958 how ever it was obvious that

one thins more comprehensive was needed and the bank established a staff college Karachi. Three mote colleges at Islamabad, Lahore and Peshawar, setup later. These colleges provide course of instructions, supervisor personnel and clerks to meet the Bank’s ever growing trained personnel. This needs springs not only from the steady grown for the bank’s business but also to replace wastage due to retirement resignation, ill health or death.

The staff college receives junior bank officers for further training in banking the course lasting from six to nine weeks with about twenty five students in each course.

The staff college course are designed not only to impart technical instruction, but also develop qualities of judgements decisions, leadership and management, since these student are likely to be those men who may expect to the seniors most executive positions the bank has to offer.

The bank also deputes officers to attend banking seminar both in Pakistan and abroad and it attaches great

importance

to

the

exchange

of

ideas

information

and

knowledge which can most use fully accure from these gatherings.

In its position the National Bank has considerable responsibility in ensuring that the country is well represented at meetings of bankers at domestic and international level.

2-

SALARIES AND FACILITIES TO STAFF

As an employer NBP is also deeply conscious of as responsibilities and act it be said that at the out set, consider its self a good employer. Its seales of pay terms of services, staff benefits and amenities compare very well with instruction of similar stature in Pakistan.

The result is that employment with the bank has come to be regarded as some thing of prize. The scale of pay and allowances for officers and staff are revised from time to

time as need grows. In addition employment with bank personable and bonuses are regularly paid.

The bank provides free medical treatment for all its employers, their families and dependent parents. A senior member of the medical profession acts as Medical Advisor and medical consultant.
Source: Mr. Noman Ahmed Source: Mr. Khadim Ali Baloch

The bank pays school fees for the children of all the supervisory, electrical and subordinate staff and this facility is extended to college fees also.

To meet the problem of fining suitable residential accommodation in the hig cities. NBP has had recourse to several measures in Karachi and Lahore for instance the bank has constructed residential quarters. NBP has granted loans on easy terms to members of staff to enable them to construct houses of their own.

To

solve

the

problems

of

conveyance

for

its

employees the bank makes advances to staff for the purchase of cars motorcycles and cycles.

The bank has provided finance for the establishment of sports clubs and staff recreation centers, to enable staff sport clubs and other suitable recreational activities to flourish. Co-operative stores and subsidized canteens help the lower paid categories to get the best value form their carnings.

CHAPTER # 05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE OPERATED BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits.

1. 2. 3. 4.

Current deposits PLS Saving deposits Fixed deposits account (Time Deposit) Foreign Currency Account

1.

CURRENT DEPOSIT

For current deposits NBP open the account in the name of individual proprietary firms, partnership firm, private limited companies clubs, association societies and other institutions. The account can be operated by single or two more persons jointly as the instructions may be given at the time of opening the account.

If the person who wants to open the account is not in position to sign or signature is not firm or shaky the bank requires is photographs and he has to come in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the account usual not be less then Rs.1000/-

But his restriction is not imposed to the accounts of charitable institutions and the account opened in the month of closing i.e. June & December.

Source: perveiz ali khawaja (OG-III)

2.

PLS SAVING ACCOUNTS

The silent features or profit and loss sharing saving accounts to be opened in NBP as under.

1.

These accounts can be opened by individuals in their own single are joint name. The PLS saving accounts can also be opened for provident fund or other benevolent funds of companies, firms, organizations of welfare and educational institutions.

2.

PLS saving account can be opened with an minimum amount of Rs. 500/- only

3.

Money can be with drawn form PLS saving account only through cheque.

4.

To share in the profit a minimum balance of Rs.500/must be maintained a account. The minimum balanced on sixth and last of month will qualify for the profits.

5.

The profit will be calculated on the basis of monthly minimum balance for the period of six months i.e. from January to June and July to December

6.

The head office of NBP determines the profits or loss on PLS saving deposits and advice its branches the rate and time of distribution of these profits

concerned PLS saving account.

7.

With drawls from PLS saving accounts are allowed not oftener then 8 time in a calancer month and for a total amount not exceeding Rs. 1500/for

withdrawal of a large amount seven days not in writing is required to be given. This notice shall not how ever affect the monthly with draw ordinarily allowed. In the even of contravention of rule.

depsositors shall forfeit his right to share profit for he notice period shall be deducted from his total profit earning products.

8.

The shall be no restrictions on maintaining the maximum balance in PLS saving account.

9.

On the fist of Ramzan every year the Zakat 2.5% will be recovered from the deposits on the balance of that day. But if depositors give declaration of Zakat or he is non-mulsim no Zakat will be recovered from him in the same day Zakat is not recovered from account in which the balance are below upto prescribed limit as declared by the administrator of Zakat Pakistan Act system of accepting deposits has been stated in NBP since 01-01-1981.

Source: Mr. Nisar Ahmed Qazi (OG-III) Source: Mr. Imtiaz Ahmed (OG-III)

3-

PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSIT A/C

In the case of fixed deposit account deposit is made for a fixed period and a money deposited can be with drawn before the expire of period fixed or before giving an advance notice to the Bank. Fixed deposit caries a higher rate of interest than the other type of bank account and the rate of interest rises with the length of the period and the amount of deposit.

One opening a fixed deposit account the bank grants to the depositor a fix deposit (FDR) which is not transferable to any other person. When the depositor with drawn the receipt must be handed back to the bank.

The silent features of profit and loss sharing term deposit excepted by NBP are given as under.

1.

The PLS term deposit are excepted from individual in their own single or joint names, companies firms and other organization.

2.

The PLS term deposit receipt are issued for any amount. There is minimum or maximum limit or deposits in a single term deposit account.

3. 4.

The term deposit can be made by tendering cash only. PLS terms depositors may be allowed some facilities against the security of these receipt credits, after making “Lien” on the relevant receipt and subject to recovery of a service charge.

5.

Under term deposit scheme the depositors not cease to earn the profit immediately, after the respective maturity date, but they have been afford a liberal facility. In case the depositors said to with draw their terms deposits on maturity their funds will remain temporarily in used and on profit earned a responsible share would occur to such over due PLS terms deposits at the rates declared on PLS sharing account.

6.

The head office of the bank determine the profit or loss on PLS terms deposit at by any one intervals i.e. the end of June and December each year and payment of profit to or deduction of loss if any from the PLS terms deposit is to be made the deposits for longer period will earn a little more profit then those of shorter period deposits.

7.

The total profit upto Rs.950/- is exempted from income tax

8.

In the case of encashment before

maturity but after

completion of months profit will be paid for the entire period for which the deposit remained with bank at the rates payable for the respective period to the PLS saving account after deduction of the Zakat if any. 9. In PLS term deposit expired and the depositors request with in one month after the expiring date, for investment. The PLS terms deposit will be reinvested for the desire period from the date immediately following expiring date.

10.

Zakat or the face value PLS term deposit will be recoverd as may time as the valuation dates (i.e Ist Ramzan) falls between the date of issue and the date of expiry of the deposit.
Source: Abdul Hameed Bhutto (OG-III)

4-

FOREIGN CURRENCY ACCOUNT.

NBP has also introduced foreign currency accounts for Pakistan and foreign Nation in Pakistan and abroad. This scheme assures its customers on better profit and superior service.

1.

It offers Pakistani or foreign National to operate a foreign currency A/C with any one of their authorized branches spread all over the country.

2.

Deposits of this accounts will be acceptable in all convertible currency but account will be maintained on the customers choice in USD Dollar, pounds German Mark or Japanese Yen.

3.

Deposits may be made in the forms of remittances in foreign currencies.

Travelers cheque on the bank counter will be accepted.

4.

The customer can make with drawls and transfers to any where in the world.

5.

All the deposits and profits in the customer’s foreign account are except from Zakat income or wealth tax.

6.

The customer’s sources are protected from any scruitny of concerned authorities.

The NBP has over 1400 branches at home and abroad of these more than 100 branches are authorized and fully equipped to deal with all kinds of foreign currency transactions. NBP has worldwide network of branches and it has associated in Arabia bank, All Jazria (26 branches) and national exchange company in UAE to facilitate the customers in Pakistan, Saudi Arabia and UAE.
Source: Atta Hussain Rajpar (OG-III)

3-

FUTURE OUT LOOK OF NATIONAL BANK.

NBP is fully aware of the developments taking place in the world as well as the changes occur in the economic and social condition with in the country. The bank is determined to meet new challenges by redefining its goals and strategy as well as by the adjustment of its operational policies.

The Bank planning to institute major improvements, especially in customer service launch innovative products to ensure that the bank continues to play a dynamic role in the development of the country.

CONCLUSIONS
At the completion of the business internship the

interence draws the following: 1. It appears a lengthy process of sanctioning advance. 2. It looks the staff member are not properly trained 3. It seems the promotion are not given in the due time. 4. It appears that large amounts paid on

administration cost. 5. 6. 7. It shows that there is lack of recovery system It seems that there is no net working. It seems that there shall be a great the rush days for the customers as well as for the staff members If the No of counter are limited or very few

8.

It might not be possible for every borrower to repay the money in due time.

SUGESTIONS

On the basis of conclusion interence draws the following suggestions

1-

It is suggestion that the process should be short in order in save time money energy and stationary etc.

2-

It is proposed that proper training be perovided to the staff members that will ultimately increase the performance of Bank over all.

3-

It is advised that promotion be given in due time because of interest to work satisfactory.

4-

It is consulted that bank should reduce its large expenses in order to increase the value of bank.

5-

It is suggested that reasonable steps should be taken to recover all absolute advances.

6-

The NBL should introduce the use of computers in order to confront with the nectic business activities. it will also help to reduce the extra load of manual work.

7-

Extra counters should be brought in order to facilitate during the rush days the difficulties faced by the bank staff as well as the customers.

8-

The period of repayment of the loans should be extended.

REFERENCES

1 . 2 . 3 . 4 . 5 . 6 .

By Greener Michael By Muhammad Rauf Beg By Mukhtiar Ahmed

The Penguine Business Dictionary Edition 1995 Page No.10 Money and Banking 2nd Edition 1993 Page No.55. Introduction to Money and Banking Ist Edition 1995 Page No.60 Banking Law and Practice

By Israr-ul-Haq

By Dr. Syed Anwar Ali Banking Ist Edition Page No.02 Annual Report of NBP 2000

INFORMED BY
1. History of National Bank of Pakistan,2006 by: (N.B.P Management Division) 2. perviez Ali Khawaja (Manager Admin)

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

http://www.nbp.com.pak Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I) Shafqat Ali Mahesar (OG-III) Mr. Khadim Ali lund Baloch (OG-III) Saeed Ahmed Khan Altaf Ahmed (OG-III) Syed Qamar Hashmi (Assistant) Aijaz Ali Rathore, (OG-III) Miss Razia (OG-III) Rafique Arbaba (OG-II) Syed Shah Nawaz (Assistant ) Moinuddin Muallian (OG-III) Mohammad Atiq Khan (OG-I) Various Bank information circulars. No & Date N/A Various NBP information circulars No and date not available

18. 19. 20. 21. 22.

Islamizationa of Banking Mr. Noman Ahmed Mr. Khadim Ali Baloch Waqarullah Khan (OG-III) Mr. Nisar Ahmed Qazi (OG-III)

23. 24. 25.

Mr. Imtiaz Ahmed (OG-III) Abdul Hameed Bhutto (OG-III) Atta Hussain Rajpar (OG-III)

CONTENTS
CHAPTER NO. 1 INTRODUCTION

1. 2.

Introduction History & Management of National Bank of Pakistan 04

01

3.

Objective of National Bank of Pakistan 07

4.

Functions of National Bank of Pakistan 08

5.

Purpose of Study 09

6.

Methods of study 11

7.

Limitation.

13

CHAPTER NO.2 INTERNATIONAL PAKISTAN FEATURES OF NATIONAL BANK OF

1.

International Features of National Bank of Pakistan 15

2.

Law Recovery, Litigations Division 19

3. 4.

Organizational Structure

24

Departments Functioning under National Bank of Pakistan 25

CHAPTER NO.3 ACTIVITIES OF NATIONAL BANK OF PAKISTAN 1. Computerization 30 2. Decentralization 30 3. Foreign Trade & Operation 32

CHAPTER NO.4 TRAINING AND FACILITES OF STAFF 1. 2. Training to Staff Salaries & Facilities of staff 36 34

CHAPTER NO.05 FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE OPERATED BY NATIONAL BANK OF PAKISTAN.

1. 2. 3.

Current Deposit PLS Saving Account

38 39

PLS Term deposit Receipt (PLS TDRS) OR Fixed Deposit Account 42

4.

Foreign Currency Account 47

5.

Future outlook of National Bank Pakistan 49

CONCLUSION AND SUGGESTIONS

1.

Conclusion 50

2.

Suggestions 51

3.

References 52

INSTITUTE OF BUSINESS ADMINISTRATION UNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE
This is to certify that Business Internship Report on NATIONAL BANK of Pakistan, has been prepared SANTOSH KUMAR S/O DAYAL DAS Under my guidance for the partial requirement for the degree of “Master of Business Administration”. It is also certified that the work is found original and the research has been inetienlously carried out and fulfils all the requisite conditions.

Sir. ASLAM PATHAN Assistant Professor & Internship Guide IBA, University of Sindh, Jamshoro

Dr. Anwar Ali Shah G. Syed Professor & DEAN IBA, University of Sindh Jamshoro

DEDICATION

This humble effort is dedicated to my beloved parents, whose love and efforts can never be forgotten.

ACKNOWLEDGEMENT

Praise

to

Almighty

Allah,

the

omnipresent,

the

Omnipotent, the Omniscient, who bestowed upon me the potentially and ability to accomplish this work. No sequence of works can express my sincere gratitude to our respected Professor and Director, Institute of Business Administration Dr. Anwar Ali Shah, G.Syed and guide Mr. Perveiz Ali khawaja experiences, helpful without whose valuable guidance, rich advice, useful suggestions and

constructive criticism and comments. I could not have been able to complete this piece of work titled as “Business internship”. I have honour to experess my heart-full gratitude to the executive and staff member of National Bank of Pakistan, Market Branch Hyderabad, who kindly gave them acceptance to the topic of my Internship Report along with many useful suggestions which encouraged me to complete my work. Thanks for all those who extend their cooperation for conducting the work of “Business Internship”

SANTOSH KUMAR

Administration

MBA (PASS) FINAL 2006 Institute of Business University of Sindh Jamshoro