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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 Bank of Pakistan’s Regional Office Hyderabad

,National Bank of Pakistan Fatima Jinnah Road Branch

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. Mr. Kauro Khan Memon (Area Manger)

2. Mr. Ghulam Murtaza Baloch (Incharge Advances)

2. Mr. Naeem Ahmed Shaikh (Incharge F.E. Dept:)

3. Mr. Saulat Hussain (Incharge Admin)

5. Mr. Sohail Ahmed (Incharge Inspection)


6. Aijaz Hussain Rathore (Export)

7. Jamshed Ali (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

this work due to full cooperation and assistance of earlier

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. Foreign Exchange and operation division.

2. 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) Investment & resources wing

(b) Accounts, Planning & Budgeting Wing

(c) Govt: Debit Management wing.

(d) Publicity and Public Relation Wing

(e) Editorial Board Quami “Banker” Wing

(f) 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) Implementation Wing

(b) 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. Law Division

10. Recovery & Litigation.

11. Customer Service Division.

12. 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) N.WF.P & A.K Sindh Balochistan Area Wing.

(b) Karachi Area Wing

(c) 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) Co-ordination section .

(b) 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. Karachi Region-A

2. Karachi Region-B

3. Main Branch Karachi Region

4. Hyderabad Region

5. Sukkur Region.

NWFP Province.

6. Peshawar Region

7. Abbotabad Region

Azad Kashmir
8. Muzaffarabad A.K. Region

Balochistan Province

9. Quetta Region .

Punjab Province

10. Lahore Region-A

11. Lahore Region-B

12. Main Branch Lahore Region-C

13. Bahawalpur Region

14. Gujranwala Region

15. Sialkot Region

16. Faislabad Region

17. Multan Region

18. Rawalpindi Region

19. 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. Agriculture advance to farmers

b. Short terms advance to business man

c. Long term advance for setting industry

d. Medium term advance for working capital

e. 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). FOREIGN EXCHANGE DEPARTMENT.

1). 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). To bring a valuable business for the branch.

c). 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. Current deposits

2. PLS Saving deposits

3. Fixed deposits account (Time Deposit)

4. 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. The term deposit can be made by tendering cash only.

4. 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. It shows that there is lack of recovery system

6. It seems that there is no net working.

7. 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 By Greener Michael The Penguine Business Dictionary


. Edition 1995 Page No.10
2 By Muhammad Rauf Money and Banking 2nd Edition
. Beg 1993 Page No.55.
3 By Mukhtiar Ahmed Introduction to Money and
. Banking Ist Edition 1995 Page
No.60
4 By Israr-ul-Haq Banking Law and Practice
.
5 By Dr. Syed Anwar Ali Banking Ist Edition Page No.02
.
6 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. http://www.nbp.com.pak

4. Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)

5. Shafqat Ali Mahesar (OG-III)

6. Mr. Khadim Ali lund Baloch (OG-III)

7. Saeed Ahmed Khan

8. Altaf Ahmed (OG-III)

9. Syed Qamar Hashmi (Assistant)

10. Aijaz Ali Rathore, (OG-III)

11. Miss Razia (OG-III)

12. Rafique Arbaba (OG-II)

13. Syed Shah Nawaz (Assistant )

14. Moinuddin Muallian (OG-III)

15. Mohammad Atiq Khan (OG-I)

16. Various Bank information circulars. No & Date N/A

17. Various NBP information circulars No and date not

available

18. Islamizationa of Banking

19. Mr. Noman Ahmed

20. Mr. Khadim Ali Baloch

21. Waqarullah Khan (OG-III)

22. Mr. Nisar Ahmed Qazi (OG-III)


23. Mr. Imtiaz Ahmed (OG-III)

24. Abdul Hameed Bhutto (OG-III)

25. Atta Hussain Rajpar (OG-III)


CONTENTS

CHAPTER NO. 1

INTRODUCTION

1. Introduction 01

2. History & Management of National Bank of Pakistan


04

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 FEATURES OF NATIONAL BANK OF


PAKISTAN
1. International Features of National Bank of Pakistan
15

2. Law Recovery, Litigations Division


19

3. Organizational Structure 24

4. 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. Training to Staff 34

2. Salaries & Facilities of staff


36

CHAPTER NO.05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE


OPERATED BY NATIONAL BANK OF PAKISTAN.

1. Current Deposit 38

2. PLS Saving Account 39

3. 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 Dr. Anwar Ali Shah G. Syed


Assistant Professor &
Internship Guide Professor & DEAN
IBA, University of Sindh, IBA, University of Sindh
Jamshoro 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 without whose valuable guidance, rich
experiences, helpful 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
MBA (PASS) FINAL 2006
Institute of Business
Administration
University of Sindh Jamshoro