INTERNSHIP REPORT

ON
NATIONAL BANK OF PAKISTAN

Azhar Maqsood
M.Com (Finance)
2018-2020
2018-AG-3314

University of Agricultural

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 Department: Institute of Business Management Science

PREFACE

The pre-requisite of internship program is to make the students of M.Com (Finance), aware of
the practical expertise and to acquaint them with the real management process.

With an intention of grooming the best executives of the future, IBMS has organized a
comprehensive internship-training program. All of us were placed in leading organizations of
business arena to gain firsthand knowledge and insight into their management and working. So,
when I was given the chance of selecting an organization, I opted for Bank Alfalah.

I think that I gained comprehensive insight into the working of a bank. But nothing could have
been possible without the co-operation and guidance of the officers of NBP.

Getting a chance working in NBP proved as a useful for me. After the completion of internship
program, internship report has been prepared just in accordance with the practical exposure. In
preparing this report, I have put all of my best efforts and tried my level best to give maximum
knowledge. Despite all of my coherent efforts, I do believe that there will always be a room for
improvement in the efforts of learner like me.

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 ACKNOWLEGEMENT

By the grace of Almighty ALLAH the most Merciful, the most beneficial, who give me skills
and abilities to complete this report successfully?

It acquires continuous hard work Completion of this report is not possible without the
support of all the staff members of the NBP corporate Centre City Kohinoor Faisalabad, to
whom I interacted.

I would like to thanks especially my supervisor Dr: Burhan Ahmad Sb to his practice
guidance and personal interest by which I became for completed this task.

The program of internship was organized in such a way that sufficient time was given to each
department according to its importance.

I found every one very co-operative and helpful for providing me the Theoretical as well as
practical knowledge about the function and operation of the bank.

Azhar Maqsood
M.Com Final semester
(2018-
2020)

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 EXECUTIVE SUMMARY

National Bank of Pakistan is a Govt. bank. It has its head office in Karachi. It has over 1243
branches in Pakistan & 24 in a foreign country.

National Bank of Pakistan maintains its location as Pakistan's leading bank dogged to set higher
values of achievements. It is the major business partner for the Government of Pakistan with
special emphasis on fostering Pakistan's economic growth through aggressive and reasonable
lending policies, technologically slanting products and services offered through its large network
of branches locally, internationally and representative offices.

The National Bank of Pakistan offers a wide range of services to its customers & recognizes the
importance of efficient business delivery & providing timely solutions.
Their competitors are untied bank, Allied bank, Habib bank, First women bank, Bank of Punjab
etc.
The essence of business philosophy is to cater to the banking requirements of small & medium
sized entrepreneurs, only if them qualitative & competitive services with highlighting on
cheering exports. Nearly forty percent of our credit portfolio is related to export financing and
credit decisions are taken within 48 hours that is why we say: “We have more time for you”
Its products are Pay Order, Mail Transfer, Foreign Remittance, Foreign Currency Account, Short
Term Investment, NIDA * ( National Income Daily Accounts) Equity Investment, Commercial
Finance etc.

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TABLE OF CONTENTS
Sr. No Particulars Page No.
1 Introduction 6
1.1 Overview of Study 6
1.2 Nature of study 7
1.3 Introduction to sector 7
1.4 Introduction of organization 8
1.5 Introduction to the department 8
1.6 Brief History of NBP 9
1.7 Main Offices 10
1.8 Business Volume 12
1.9 Product lines 13
2 Finance Department 16
2.1 Organizational Structure 20
2.2 Organizational Hierarchy 20
2.3 No. of Employees 22
2.4 Main operations, functions and management 23
2.5 Your Position/Duties Descriptions 26
2.6 your Involvement 30
3 Major Activities Perform (Daily/Weekly) 31
4 Major Competitors 31
5 Success and Failure of Different Products 32
6 Shortfalls/Weakness of The Finance Department 34
7 Critical Analysis 34
8 Future Prospects of The Organization 35
9 Problem Faced During Internship 37

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 10 SWOT Analysis 37
11 Recommendations and Conclusion 40
12 Reference and Sources 43
13 Annexure 44
13.1 Internship Completion Letter 44

1: INTRODUCTION TO REPORT

Introduction

Students of M.com studying courses leading to master’s degree in Commerce are required to
undergo an internship program me of two months duration. This is an essential academic
requirement. The internship is followed by comprehensive report writing, required to submit it.
This report is properly evaluated on the basis of its description and analytical capabilities by
internal and external examiners. I did my internship in NBP (Corporate Branch Kohinoor City of
Faisalabad).

1.1 Overview of Study

National Bank of Pakistan (NBP) is the second-largest profitable bank in Pakistan, with market
shares of 13% in terms of total securities and 12% in terms of total loans as of 30 September
2017. NBP was established in November 1949 under the National Bank of Pakistan Ordinance
1949.Mar 29, 2018
 Industry: Commercial Bank
 Organization type: Commercial bank
 Geographic scope: Pakistan

1.2 Nature of the study

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The study is perilous in nature. It was showed to investigate censoriously into the operations
ofNational Bank the scheme was launched in December 1995 to attract corporate customers. It is
a current account scheme and is part of the profit and loss system of accounts in action
throughout the country. NBP has augmented its activities in the stock market to improve its
economic base and restore investor buoyancy.

1.3 INTRODCTION TO SECTOR

Banking History

Unanimity on the origination of word “Bank” is not yet reached at. Some authors’
opinion is that this word is derived from the Italian words “Bancus” or “Banque”, which mean a
bench and they further relate banking business inception to Jews in Lombardy. Other authorities
state that the word “Bank” is derived from the German word “Back” which means “Joint Stock
fund” and later on due to German occupation of Italy, this word was Italianated into “Bank.
Authors quote Babylonians (few quotes Chinese) who developed banking system as early as
2000 B.C.
Banking in Pakistan

Banking started in Pakistan after the bold and emergent decision of devising of SBP on Jul 30,
1948. Thereafter this sector has witnessed massive growth. In 1974 banks were nationalized, in
the hope that new era of growth could be attained through it. However, the process is reverse
since 1991, up till now MCB, NBP, and UBL have been privatized and HBL is in the process of
its denationalization.

Meaning of Banking

The Banking companies’ Ordinance, 1962 defines Banking as “Banking means accepting for the
purpose of lending or investment, of deposits of money from public, repay NBP on demand or
otherwise and taking out by checks, drafts, order, or else.

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1.4INTRODUCION OF ORGANIZATION

Introduction

National Bank of Pakistan (NBP) is a Pakistani government-owned commercial bank which is a

minor of State Bank of Pakistan.

The bank provides both commercial and public sector banking amenities. It is a lead player in the
debt-equity market, corporate investment banking, retail and consumer banking, agricultural
financing, treasury services.

Vision

 To become a energetic and competent bank providing cohesive solutions and the first
optimal of bank for all customers
 To be recognized as a leader and a brand tantamount with trust highest standards of
service quality, international best practices and social obligation

Mission

 To afford value-added services to our customers

 To espousing the best international management practice
 To create sustain NBP value through growth, efficiency and diversity for all stakeholders
 To play a preemptive role in contributing towards the society

 To institutionalizing a merit and concert based culture

1.5INTRODUCTION TO THE DEPARTMENTS

NBP CORPORATE BRANCH

(Branch code = 2034) Address: Kohinoor City, Faisalabad.

I did my internship of six weeks in NBP corporate Branch (2035) from 3-02-20 to 22-03-20. It
is one of the small branches of NBP, which is yet to be renovated. I selected this branch because

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of two reasons. First, I was of the view that one can find more learning opportunities in a small
branch as compare to a big one. Secondly it is positioned near to my residence. So I got the
opportunity to know briefly about every department.

1.6BRIEF HISTORYOF NBP

National Bank of Pakistan was customary on November 8, 1949 completeephemeral of a

special ordinance in the National Assembly. The need for the formation came due to the
purpose when aft that time newly born country was facing economic calamities. To get
rid the interpolation form the reserve bank of India, a self-owned and operated Central
Bank by the name of State Bank of Pakistan was formed in July 1948 to carry on the
responsibilities of issuing the currency and most importantly controlling the flow of
money inside the country. State Bank of Pakistan after its materializationcommanded
from the Indian Reserve bank the assets against the Indian currency retired from Pakistan
terrain. Government of India snubbed to hand over the assets worth about five hundred
million rupees. This quarrel is still unsettled and these assets are still not delivered to
Pakistan.

 1949 National Bank of Pakistan (NBP) was established under the National Bank of
Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent of the
Central Bank wherever the State Bank did not have its own Branch. It also undertook
Government Treasury operations. Its first branches were in jute growing areas in East
Pakistan. Offices in Karachi and Lahore surveyed.
 1950 NBP established a branch in Jeddah, Saudi Arabia.
 1955 By this time NBP had branches in London and Calcutta.
 1957 NBP established a branch in Baghdad, Iraq.
 1962 NBP established a branch in Dar-as-Salaam, Tanganyika.
 1964 The Iraqi government nationalized NBP's Baghdad branch.
 1965 The Indian government grasped the Calcutta branch on the outbreak of hostilities
between India and Pakistan.
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  1967 The Tanzanian government nationalized the Dar-as-Salaam branch.
 1971 NBP assimilated Bank of China's two subdivisions, one in Karachi and one at
Chittagong. At separation of East Pakistan NBP lost its divisions there. NBP fused with
Eastern Mercantile Bank and with Eastern Bank Conglomerate
 1974 The government of Pakistan nationalized NBP. As part of the concomitant
consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947).
 1977 NBP opened an offshore brain Cairo.
 1994 NBP incorporated Mehran Bank (est. 1991).
 1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.
 2000 NBP opened a symbolic office in Almaty, Kazakhstan.
 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks
to operate in the UK. NBP and United Bank agreed to merge their operations to form
Pakistan International Bank, of which NBP would own 45% and United Bank 55%. Also
that year, NBP closed its branch in New York.
 2002 Pakistan International Bank rechristened itself United National Bank Limited
(UNB). The ownership structure of the UNB remained as before. The only change to the
shareholding structure is that UBL had recently been privatized in Pakistan and was now
owned 49% by the Government of Pakistan and 51% by a joint foreign consortium of
Abu Dhabi.
 2003 NBP received approval to open a branch in Afghanistan.
 2005 NBP closed its offshore branch in Cairo.
 2010 NBP opened its branch in Karaganda (Kazakhstan).
 2011 NBP opened its demonstrative office in Toronto (Canada).
 As of 31 December 2017, the Government of Pakistan directly and indirectly retained a
75.6% stake in the bank.
 Today, with its being of over 70 years, the Bank has built itself a foundation with a
strong equity, assets and deposit base. It offers universal banking services, while placing
major accent on retail banking.

1.7 MAIN OFFICES

Head office of National Bank of Pakistan is NBP Building, I.I. Chandigarh Road, Karachi.

Email: enquiries@nationalbank.com.pk

TelephoneNumber

Phone: +92 -21- 99220100

Phone: +92 -21- 99062000

Fax : 021-9212822

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NBP has a wide native branch network consist of more than 1400 branches located in more than our
country and 24 branches as overseas.

Sindh
In Sindh the main offices of the NBP are in the following categories;

 Karachi

 Dadu/sangar

 Larkana

 Mirpurkhas

 Nawabshah

 Sukhar

Punjab
Has main offices of the NBP are in the following categories;

 Lahore

 Faisalabad

 Gujranwala

 Islamabad

 Jhang

 Jhelum

 Sialkot

 Multan

 Rawalpindi

 Sahiwal
 D.G Khan
 Bahawalpur

Baluchistan
Main offices of the NBP are in the following categories;

 Quetta

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  Azad Kashmir

NWFP
Main offices of the NBP are in the following categories;

 Peshawar

 Abbott Abad

 Mardan

 Kohat

1.8 BUSINESS VOLUME

The NBP is the foremost bank determined to set higher standards of attainments. It is the key
business partner of the Govt of Pakistan's economic growth through destructive& impartial
lending policies. The main function of the bank to provide commercial banking and related
services in Pakistan and abroad.it is also handled the reservesrelations of the Govt of Pakistan as
an agent to SBP.

Ownership
NBP is 100% owned by the Government of Pakistan.

Deposits
NBP holds 9 share of capital and demand deposits in the country. Local currency deposits
comprise 91% of banks total deposits while foreign currency deposits account for the rest.

Assets
NBP's total assets at PKR2370 billion on December 2017.this included total earning assets of
about PKR 10.82 per share gross loan profits of PKR739 billion. The bank also has an
investment portfolio of PKR1295illion, which covers treasury sanctuaries, corporate bonds,
shares and other securities.

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Financial Highlights:

1.9 PRODUCT LINES

National Bank of Pakistan has launched different programs to suit the needs of people of
different sectors.NBP offers a full suite of harvests and amenities, tailor-made to cater to the
requirements of each segment of its customer base. We aim to provide comprehensive solutions
for all our customers, wherever they are located on their financial graph including customers just
beginning a banking affiliation to those with more sophisticated banking needs

NBP Advance Services

Being the network of the bank customer to provide facilitate to advance services.

ATM Point
Bank provide the facility to our customer 24 hours.

E-Payments
SMS Alert, Pre Scheduling of Tax Payments, Computerized Payments Receipts and Special Handling of
Bulk Data.

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Mobile Banking
Account Update, Bank Statements, Balance Inquiry and SMS Alert.

Utility Bill Payments

Faster Payments System and Hasb-e-Free Convenient

Current Account
In a preoccupied life of today, only calmness can bring happiness. NBP gives a choice of its customer to
open their current account.

Assan Account
NBP open a current and save account with the NIC of the person 100 rupees.

NBP Saiban
Home Purchase
 Financing Quantity up to 35 Million
 Financing Period 3to 20 Years
 Debt to Equity 70:30 Maximum
 Debt Burden 45% Maximum

Home Construction
 Financing Amount up to 35 Million
 Financing Period 3to 20 Years
 Debt to Equity 70:30 Maximum
 Debt Burden 45% Maximum

Land Purchaser Construction

 Financing Volume up to 35 Million
 Financing Period 3to 20 Years
 Debt to Equity 70:30 Maximum
 Debt Burden 45% Maximum

Balance Transfer Facility

If you have a home finance facility to another bank you can have reassigned to NBP but Terms
and Ailment also apply.

Kisan Taqat

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Kisan to get a loan easily with 875 branches of NBP system and enough to documents base.

Kisan Dost
Different agricultural farming program in Kisan dost discuss.

 Inexpensive Markup Rate

 Wide range of easy processing
 Finance facility is also available for landless farmers
 Quick and easy processing
 Financing available against pass book, residential, commercial, gold and paper security.

Advance Salary
Now avail advance salary with enhance limit of up to 2 Million.

 Lowest Markup Rate

 Easy installment of 60 Months at your choice
 Quick and fast disbursement process

NBP Pehgam
Provides the facility of our customer to SMS alert pehgam.

NBP Online
 Balance inquiry
 Stop Payment
 Cash withdrawal through checks
 Transfer of funds to own and third party account
 Statement of account

NBP Digital
Provides the facilities of our customer to Mobile Application

NBP Helpline
Call center: (+92-021) 111-627-627

 Product information
 ATM card information
 Account information enquiry

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 2: FINANCE DEPARTMENT
Personal Finance
You can avail unlimited prospects through Meezan Bank’s Personal Finance. With consummate
financing features in terms of loan amount, payback period and most affordable monthly
installments, Meezan Bank’s Personal Finance makes sure that you get the most out of your loan.
No matter what your need is, Meezan Bank has more ways to serve you than ever before.

Features Details

Loan Amount:  Minimum: Rs. 50,000/-

 Maximum: Rs. 500,000/-

Age: 21 – 60 years (maturity of loan at 60

years)
21 – 65 years, SEP/SEB/Pensioners
(maturity of loan at 65 years)

Tenure: 1 – 5 years

Electronics Mandatory for all applicants. Debt

Credit burden inclusive of all existing and
Information proposed liabilities shall not exceed 50%
Bureau (ECIB) & of net disposable income
Debit Burden

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Ratio (DBR):

Processing/Others As per prevailing “Schedule of Bank

Charges: Charges“

Mark-up

Segment Annual Mark-up

Armed Forces: Commissioned Officers:

12 months Kibor + 1.5% (upto
3 years)
12 months Kibor + 2% (more
than 3 years)
Non – Commissioned Staff:
16%p.a.

Branch Customers 22%

(Salaried):

Branch Customers 26%

(SEB/SEP):

Non Branch Customers 24%

(Salaried):

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Non Branch Customers 28%
(SEB/SEP):

Minimum Income:

Minimum
Category Income Relation/Service Length
Requirement

Armed Forces: Rs. 25,000 Commissioned officers/Non-

Commissioned staff

Salaried: Rs. 25,000 3 months salary relationship

with AKBL & 3 months
permanent employment with
current employer

Rs. 35,000 Contractual, 3 months

permanent employment with
current employer

SEB/SEP: Rs. 50,000 1 year account relationship

with AKBL

Rs.75,000 Non Branch

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 Government Rs.25,000 Permanent, BPS 14 or above
Sector: 12 months service length

Rs.35,000 Contractual, BPS 17 or

above 12 months service
length

Mortgage Finance

Build a Homespun

This type of loan is extended to customers who already own a piece of land and need funds to
meet cost of constructing of house on that land. The disbursement of this loan is made in
tranches during the construction phase depending upon the Bills of Quantity (BOQ) submitted by
the customer duly verified by Bank’s approved valuation agency.

Buy a Home

As the name suggests, this type of loan is meant for the purchase of an already erected house.

Buy a Plot and Construct

This loan type is extended for the customers who want to buy a plot and construct a house on
that plot. The disbursement of this loan is made in tranches for the purchase of plot and then
during the construction phase depending upon the bills of quantity (BOQ) submitted by the
customer duly verified by Bank’s approved valuation agency.

Renovation
This loan is offered to customers who already own a house and require funds for
renovation/improvement. Disbursement will be made in two tranches only after customer has
provided BOQ duly verified by Bank’s approved valuation agency.

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Balance transfer facility
This kind of loan is offered to existing borrowers of other institutions, who may want to switch
over to Meezan bank because of service, pricing or relationship reasons. The Mortgage loan with
the other financial institute should be with positive credit history. Balance transfer facility is
strictly not allowed for properties that are still under construction

2.1: ORGANIZATIONAL STRUCTURE

In NBP, the head is called "Chairman" or "President" of the Bank. There are five Board of
Directors in NBP and eleven group members of which control the working of partitions.

National Bank of Pakistan provides the facilities in Pakistan overall 1243 branches and 22
branches in overseas. There are 29 regions in Pak. All branches of NBP reported to five head of
RMT Members. The structure of the organization to deeply in detailed. The Organizational Chart
and Sub-charts are very eloquent. The defined pyramid suits the needs of the Bank and is able to
manage the affairs smoothly. Unlike other Banks, the hierarchy is less complex and is easy to
follow and understand, the organization has a flexible structure.

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2.2: Organizational Hierarchy

The organization hierarchy represents the different positions and designations in the hierarchy
of the NBP. However, this is not the reporting hierarchy but purely represents the positions and
grades on the basis of seniority and grades.

PRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD

REGIONAL CHIEF

ZONAL CHIEF

BRANCH MANAGER

Board of Directors

 Mr. Zubyr Soomro

 (Chairman)
 Mr. Arif Usmani
 (President & Chief Executive Officer)
 Mr. Farid Malik, CFA
 (Director)
 Mr. Muhammad Sohail Khan Rajput
 (Director)
 Ms. Sadaffe Abid
 (Director)
 Mr. Tawfiq Asghar Hussain

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  (Director)
 Mr. Imam Bakhsh Baloch
 (Director)
 Mr. Asif Jooma
 (Director)
 Mr. Syed Muhammad Ali Zamin
(EVP, Secretary Board of Directors)
2.3: NUMBER OF EMPLOYEES
In national bank of Pakistan Kohinoor city, Faisalabad branch 19 employees are working in
different departments.

2.4: MAIN OPERATIONS, FUNCTIONS AND MANAGEMENT

DOMESTIC OPERATIONS
NBP has vast network of 1243 outlets within Pakistan.

Its subsidiaries are:

 NBP Modarba Managing Company limited

 NBP Argument Company limited
 Taurus refuge limit
 Ready cash against Gold
 Assan branch Banking

FUNCTIONS OF BANK

The basic function which NBP performs and product it offers are as follow;

ACCEPTING DEPOSIT

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The first important function of bank is to accept deposits from those who can save but cannot
make profitable use of their savings themselves. In order to attract the saving from different
persons and institutions, the bank preserve the following three types of accounts

Current Account

The businesses and traders usually maintain their funds in current account. current account is one
where money is constantly being drawn out and put in .since the money withdraw able at any
time by the customer, therefore ,the bank do not pay interest on current account. Assumption of
Zakat is also not applicable on current account. Current account holders receive a cheque book
and regular statements containing details of money paid in and paid out.

PLS/Saving Account
The aim of this account is to reassure and mobilize saving of the people. Saving account is
generally opened by the person or small income and for salary purpose. The bank pays interest
on this type of deposits.

Royal Profit

In this account the bank pay interest on daily basis which is 1.5%every day. It is a form of saving
account but mostly use for business purposes. Reasoning of zakat if allowable on it.

Fixed Deposit

These deposits are kept with the bank for a specified period of time. The rates of interest on fixed
deposits are fairly high. The longer the period of deposit, the higher the rate of interest.

Collection of Checks

In the collection and Payment of Cheques, bills and promissory notes etc.

Agency Services

NBP also provides agency services to its customers.

Acting an Agent

NBP also act an agent correspondents and represents for its customers at home or abroad.

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General Utility Services

Utilities provided by NBP are as follows;

Clearness of Utility Bills

NBP provides the services of clearing the utility bills i.e. electricity, gas, and telephone bill of its
customers.

Locker Facilities

NBP also provides locker facility to its customer to keep their variable assets in it.

Management Hierarchy

Management is a discrete process consisting of activities of arrangement, uniting, prominent and

governing performed to determine and accomplish stated objectives with the se of human being
and other resources.

NBP centralized type of management because the top management takes all the decisions.

NBP Corporate Branch Faisalabad

Name Designations Qualification

Mr. iftikher Ahmad Branch Manager MBA, MA Eco. , IBP

Tariq Iqbal Credit Manager MBA, IBP

Sohail Yar Khan Operations Manager BA

Shahid saleem CD Incharge BA

Zahid Rasool Trade inance incharge MBA

Peter john Car finance Incharge BCS

Azhar Shahid Leasing Incharge MA Econ.

Ahsan Saleem Home finance MBA

Neelum Qamar Incharge MBA

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 account opening

Sadaf Batool Clearing incharge MBE

Farah Munir Remmitance Incharge BA

Farooq durrani Account opening officer BCS hons

Mustansr Hammad Incharge ctedits Mcom

Luqman Sarwar Activity Incharge LLB

Kashif Gillani Car Finance Officer MBA

Attika Yousef Asstt.foreign Trade MBA

Raja Yasir BDO MBA

Muazzam Khan BDO MBA

Nasir Nawaz A/C opening Officer BA

2.5: POSITION DUTIES DESCRIPTION

I am the some duties in NBP Corporate Branch with the help of different colleague.

CUSTOMER SERVICE DEPARTMENT

This is the department which is dealing with customers and convinced them towards to open the
accounts and persuading them to indulging in many other activities of bank, these departments
serving the customers in the various ways.

The above two departments activities are actually starting from here it can be say that customer
service department is composed of the foreign currency departments and credit departments.

OPERATION DEPARTMENT

Computer Operations
In NBP Corporate Branch the computer section performs several duties that are as under

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Daily Transactions
To record all the transactions in case of deposits made by the people and also to record all the
withdrawals made by the people or customers. Each transaction has to be recorded in its
appropriate head of account with the help of prescribed codes.

Vouchers
To record all the vouchers made by the remittance department. Remittance department have to
prepare debit and credit vouchers for about every transaction recorded in their department. Then
these vouchers are sent to computer operator to record those in computer.

Advices
To record all advices received from other branches. Most of the-inter branch or intra branch-
remittances are subject to ultimate receipt of advices from the corresponding branch to
materialize the transactions. These advices also have to be recorded in computer.

Statements
To close the daily record a number of statements have to be printed out. Statements like:

 Day’s transactions (sequence)

 Overdrawn facilitated a/c statement
 Markup sheet
 Inter branch transactions
 Detail of PLS and Current a/c
 Day’s transactions (a/c wise)
 Operative, Dormant, Inoperative and Unclaimed a/c
 All ATM transactions
 Detail of GL entries (official & non customer transactions)
 Summary of all a/c (debits, credits & balances)
 Profit due, transferred, disbursed, etc.
.

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CLEARING DEPARTMENT

In clearing process, if the account holder of NBP receives the cheque of other bank like Meezan
Bank, Habib Bank Limited etc., and he submits it in NBP branch to be cashed. At the same time
the clearing process starts. First the bank name. Cheque number and the amount are written in
the register. After this three kind of stamps are required first bank name stamp, secondly clearing
stamp of next date and If the cheque is not local then the intercity clearing stamp is required.

Some cheque are local and some are from out of city. The institution N.I.F.T. provides the
services in clearing the cheque. They send the different cheque to different banks. The N.I.F.T
service is now avail NBP almost every city except some of areas. The cheque of inter city is send
through N.I.F.T. And where, the N.I.F.T service is not avail NBP so the cheque is sent through
T.C.S.

Mail Transfer
When a customer requests the bank to transfer his money from this bank to any other bank or the
branch of some other bank, the first thing he has to do is to fill an application form. In which he
states that he/she wants to transfer the money from this bank to that bank by mail. If the
customer is the account holder of the bank, operating personal will proceed further with steps
like:

 Writing a debit voucher for a/c holder’s a/c

 Preparing an advice in favor of stated bank/branch

 Writing credit voucher for GL

 Mail the advice

If the customer is not the account holder of this bank, then firstly, he has to deposit the money
and then above procedure will be adopted to transfer his money.

Pay Order

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Pay order is the most convenient simple and secure way of transfer of money. It is issued by,
drawn upon and pay NBP by the same branch of the bank. It is neither transfer NBP nor
negotiate NBP and as such it is pay NBP to the payee named there in. The following are the
parties to a pay order.

 Purchaser is a person, firm, company or local authority.

 Issuing/paying branch is one which issues/pays on presentation.

 Payee is a person named there in.

Demand Draft
Demand Draft is another way of transfer of money from one bank to another bank. Unlike pay
order, a form is required to be filled for the issuance of the demand draft in which necessary
particulars about the beneficiary and sender are given. The sender deposits the amount of DD
plus commission and other charges on the bank counter, from where he is given a receipt and in
accordance with this receipt he is issued.

OPENING AND OPERATION OF BANK ACCOUNT

As discuss earlier there is a prescribed procedure for opening different types of account.
Following steps re followed while opening a new account.

Application from for Opening of Accounting

A person who wishes to open a bank account is vital to complete this from personal
information is to be furnished. The application signs the declaration to effect that he has
understood the rules and regulation of the bank.

Introduction
As required by the banking law the new customer needs to be introduced by the account holder
of the same branch where the account is being opened. The manager or any other bank officer
may introduce the new customer if they know them personally.

Signature card

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At the time of opening an account a specimen signature card containing two signature of the
customer is required which the manager of the branch attaches with application form.
During the operation of account the signature is verified when the cheque is presented for
payment.

Cheque Book
After completing formalities for opening saving and current a cheque book s issued to the
customer for withdrawing cash from his or her account at the time of need. The cheque contains
minimum 25 pages & maximum 100 pages. The bank also charges excise duty on cheque
book. 1 cheque amount is 10 rupees.

FOREIGN CURRENCY ACCOUNT

The NBP is also giving the facilities of foreign currency account as well as Pak rupee account.
Foreign currency department is also playing a vital role in the banking and it becomes immense
source of earning. In the Allied bank the foreign currency account can be opened in many
currencies but the four main currencies are:

 US Dollar (USD)
 Euro (EUR)
 Japanese yen (JPY)
 Sterling Pond
Foreign currency account can be opened in many accounts such as:

 Current account
 Saving account
 Term deposit account

2.6: YOU’RE INVOLVEMENT

Being a part of organization I learnt about:

 Division of work

 Values

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  Professional attitude

 Customer dealing

 Discipline

 Unity of command

 Setting challenges etc.

The bank has great image owing to the trust but it needs to use it excellently to increase
market share with in such a competitive economy. As the business and economic conditions
continue uncertain, NBP carry on to change the new products like it has been doing in past.

3:MAJOR ACTIVITIES PERFORMED DURING INTERNSHIP

(DAILY/WEEKLY)
Here is my countdown daily and Weekly activities to perform in Bank.
Account Opening
My preliminary five days at customer service department was the liveliest experience of my
internship. Though physically I was there just to assist the account opening officer, but it turned
out to be much more for me. That is when I first actually imitated as a presenter of NBP to
customers, when to many people, I'm their hope.
NBP offers a variety of options for anyone; to everyone. You are an investor, regular
businessman, middle man, salaried person or a house wife; NBP serve you in every way it can
through its commend NBP and rail NBP services, because at NBP, YOU come first.
Working at Customer Service Department, I did counter with different types of customer and
opened their accounts under the supervision of the officer. When you have the sole responsibility
to open the accounts, it's always very important to understand the needs of your customer.
Understanding the psyche of customer is very important. Until and unless you're completely
satisfied that the customer has genuine reason and need to open the account, don't do so.
Currency and type of account
It offers you all the eight different types of accounts mentioned before. First understand why the
customer is here and what type of accounts suits him a lot. Scale down all the options suiting his
investment or requirement and help him choose what is best for him.

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ATM/Debit card dealing
Here first define your customer What ATM card is, what its features are and how to use it. As
customer get willing to use to fill out the require prescribe form and send it to head office and
also send request from computer (T24).

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 4:MAJOR COMPETITORS
These are competitors of NBP.
 Faysal Bank
 United Bank
 Bank Of Punjab
 Bank Al- Falah
 Standard Of Bank
 Muslim Commercial Bank
 Habib Bank Limited
 Allied Bank
 Askari Bank

5: SUCCESS AND FAILURE OF DIFFERENT PRODUCTS

NBP is considered to be a very successful bank in the financial circles. A bank is place where the
customers can safely keep their money as long as they want.

 Willingness and trust

 Lowest markup
 On-Line banking
 Inclusive and diversified product portfolio
 Bad debt rate is low
 Excellent credit rating
 Phenomenal Growth
 Highly Proficient and trained employees
 Crucial Location Of Branches
 Bank is financially strong and has a huge deposit reserve
 Foreign Trade is the focus of bank. It has become ansupreme bank for the importers and
exporters.

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NBP also has some failure but their number is much less than the success of the bank. Following
factors need attention of the management.

 Lack of advertisement through electronic media

 Lack of advanced marketing.
 Less Efficient Computer And I.T. System
 Skill Set of Employees is not up to mark as there is no job rotation.
 Foreign Banks still are a little more prestigious
 Allied Bank Limited does not enjoy foreign network
 Most of the employees are overloaded with work. There is patchy distribution of work
and promotions are not very timely
 It is slow in the introduction of new services
 Few branches has ATM facility
 Employees feel over burdened
 It has only one oversea branch although it does a lot of foreign trade business.

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6: SHORTFALLS AND WEAKNESS OF THE FINANCE DEPARTMENT
Documentation
A major weakness in organization is a lack of adequate documentation.
Weather records are in proper or digital form has to be able reconstruct who initiated an action,
such as a payment; who approved it; and what resulted from the action. If a problem ascend in
documentation that take an action his.

Function Segregation
Critical activities, such as issuing checks, have to be segregated into numerous tasks carried out
by different employees. Typically one person issues the check, while two or more others sign it
and another employee sends it out and enters it into the books.

Training
If a company has to prepare financial standards, the employees responsible for the work have to
be accustomed with the company policies and internal controls.
Inadequate training of employees in key position of responsibility constitute a weakness in
organization.

Deficiency Reporting
Can occur in the design or execution of procedures, but financial management has to target both
possibilities with monitoring that detects discrepancies and issues equivalent reports.
If software report is not tracking for important documents or an employee in charge of
varyingcertification have to issue a disobediencereport.

Authorization
Disregarding to track approvals to make sure that employees are not exceeding their sanction
levels is a key internal control function of the weakness.
Reconciliation
Workers compile important variables within a business from multiple sourcing.
For example: They may take physical inventory of products on hand but also calculate inventory
from products received and product sold.

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7: CRITICAL ANALYSIS
It is true that the bank is trying to adopting computerized system but there are most of staff is
unable to use or not familiar with computer. There is no proper facility for customer in bank.no
proper facilities for old age people, they face so many problems in bank. There is no any shop for
bank staff so that they can bring something for themselves or their guests in break time. Their all
system in manual so much time waste in different process. There is also an electricity problem in
bank. There is reduction of staff in some different departments, so they complete work for their
internees. There is reduction of law & order, so sometimes branch faces so many problems
especially in the dates of pensions. All types of pensions are treated same day that's why creates
the problems. The balance sheet shows the good position of the bank and income statement
provides us a brief look over it success during the year.

8: FUTURE PROSPECTS OF THE ORGANIZATION

Employee job changes

Job changes in the classified service must be made in accordance with the civil service rules and
regulations. Any person appointed or promoted must be certified as qualified in accordance with
and subject to the civil service rules and regulations. The state personnel director shall. The
state personnel director shall administer the certification of all appointments and promotions.
Job changes with the organization
Job also change with the organization because when employee achieved a chance of promotion
in any other organization he will leave the current organization but there are some rule that he
can follow.
Change Management Program: NBP has started an ambitious Change Management Program to
further train its employees to meet the challenges of present day requirements
Promotion
The promotion policy introduced in 1979 was based on three parameters i.e.
(i) Qualification,
(ii) length of service and

35
 (iii) Standard of service.
Separate marks were prescribed for each of the threeparameters and, after obtaining the
minimum qualifying marks varying from cadre to cadre; one couldbe promoted to the next
higher position. While formulating the merit based promotion policyintroduced in 1999, the
considered opinion was that separate points should not be prescribed forqualification and
length of service. The simple reason for this thinking was that the minimumqualification
stood, as agreed at training for different levels of hierarchy.
Transfer
Transfers on request, however used to take place only on compassionate and medical grounds
while another reason was that these were initiated by the Bank for meeting its business or
administrative necessities i.e. filling up the vacant positions. Maintenance of office-wise
seniority lists up to OG-1 (on the General Side) and up to OG-2 (T.O) (on the Cash side)had also
contributed to the lack of movement of employees from one office to another. Resultantly allthe
employees become eternally positioned in their place of work, whether the head office or the
field offices of the Bank. At the same time, there was much movement within the unit/division
ofposting. Although instructions provided that an employee can remain posted in one unit for up
to 3years and in a division for up to 6 years, yet some offices used to frequently transfer their
employees from one unit/division to another. On the other hand, transfers from one department
to another at the Head Office were rare. This had further deteriorated the level of efficiency both
at the head office and the field offices.
With the objective of preparing staff to accept new challenges, acquire new skills and
diversifiedexperience, the following handover policy has been framed for all categories/sides of
employees (other than clerical & non-clerical staff of the Bank):
1. The seniority list of all OG-1 and above will be maintained on an all-Pakistan basis.
However, all employees including those of Cash department shall remain transferable from one
office to another.
2. All transfers involving change in office up to OG-3 shall be made by the
LeaderAdministration, OG-4 & above with the approval of the Managing Director.
3. Employees on promotion as OG-4 and above shall invariably be transferred from
theoffice/department where they were working before their promotion.

36
 4. An employee transferred from one office to another shall be allowed to seek his
postingback to his parent office or to the office of his choice subject to administrative
convenience immediately after completion of 3 years.
5. The Chief Manager shall not remain posted at one office for a period of more than
3years.

9: PROBLEM FACED DURING INTERNSHIP

Customer satisfaction
In NBP customer dealing is well, but during rush hour the customer has to wait for a long time
requires information.
Unequal distribution of work
I observed that the unequal distribution of work is confusions for all the staff employees.
Less staff
Staff of the bank is less but the workload of the existing staff for enough. Sometimes due to the
shortage of time they lose a good customers.
Marketing efforts
A useful content of mode is through personal marketing visits or efforts. Such visits are very
useful but the some visits of time waste.
Poor record management and filling system
During my internship I observed that filling system of branch is not good. When certain record to
find is need the whole staff has been struggled.

10: SWOT ANALYSIS

The SWOT analysis is a ample and critical overview of the operations, procedures, rules and
regulations, services and other related activities, the analysis include the analysis of NBP
Corporate Branch in the light of the entire branch and Bank specific varies which directly or
indirectly affect the operations of the branch. The tool selected for the analysis of organization is
SWOT analysis.

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SWOT analysis is an acronym that stands for Strengths Weaknesses, Opportunity and Threats.
This is a careful evaluation of an organization’s strengths to avail an opportunity by overcoming
its weaknesses and phasing out all the threats to its survival in order to grow and survive.

Strength

These are strengths of national bank of Pakistan.

 NBP one of the largest financial institutions of Pakistan with eight million of customer base
NBP holds 24.6% share of time and demand deposits in the country. Local currency deposits
comprise 67% of bank's total deposits while foreign currency deposits account for the rest.

 NBP has an extensive domestic branch network of 1400 (according to the latest data)
branches located all over Pakistan. The Bank also has a presence in 18 international locations
including the USA, United Kingdom, Europe and the Far East.

 NBP's total assets stood at Pak Rs.370 billion on December 2017. This included total earning
assets of about Pak Rs.268 billion with gross loan portfolio of Pak Rs.140 billion. The bank
also has an investment portfolio of Pak Rs.91 billion, which comprises treasury securities,
corporate bonds, shares and other securities.

 NBP cash provision as percentage of non-performing loans equal to 60% this coverage factor
for the non-performing loans is the highest amongst the nationalized commercial bank.

 NBP is working as right arm government of Pakistan as it is responsible for all claims of
government for recovery as well as payment. All depositor of NBP are in reprieve that their
money security is surefire by government of Pakistan.

Weakness
 The organization is very much unfeeling and provides no plasticity to embolden
creativity.
 The technical training of the staff is slight e.g. in case of the absence of computer there is
no alternate trained personal who can record the daily transactions.

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  The organizational culture and members are not fully cooperative.
 The control of manager is not effective.
 The branch has no industrial accounts.
 Foreign currency department and account not properly maintain.
 The filing system is not up-to-date. Much time is wasted while searching for even a week old document
 There is a high part of favoritism, and mostly employees are hiring on the basis of
nepotism and references.
 Branch has not providing any type of financing to customer’se.g.
 Long term financing
 Short term financing
 Car Financing
 Home Financing
 Branch has less furniture than requirement, and less sitting arrangements.
 ATM and online facility is yet provided by branch but its functioning is not very
appropriate. Often the ATM machine and online system is not employed and hence many
a times the customers get disappointed by the services of the branch and they go another
bank for shifting the online trades.

Opportunity
 The branch is located in a commercial area hence its location is the big opportunity for
the bank to fascinating the customers at a large scale.
 NBP is not yet giving the facilities of car financing and house financing to their
customers. It is a big opportunity for NBP to expending its business at a more large scale
by starting the business of car, house financing and business financing.

Threats
 Increase in competition due to increasing number of foreign and domestic private banks
offering highly specialized and striking services. Although it is ahead of many banks like
HBL is a constant threat to UBL.

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  The biggest threat to the operational success of the branch is the better competitor’s
services. Many private sector banks are offering higher rates of return to customers than
Allied Bank of Pakistan.
 General promotion campaigns run by competitors.
11: CONCLUSION
This SWOT Analysis is a mirror image of the bank’s present conditions. Some efforts are made
and others are still required to be made in order to improve the situation. The management can
develop extravagant strategic plans for exploiting the avail NBP opportunities. The bank should
maintain principal of professional management and adhere to sound and sophisticated banking
rules and regulations so that confidence and trust of the public in the institutions could be re-
earned.
SUGGESTIONS AND RECOMMENDATION
Recommendations are considered to be the most important part of an internship report, without
which no report is considered complete and meaningful. This part of the report is based on the
previous sections i.e. review and analysis. Moreover, for bringing suggestions, discussions have
been directed with the staff of NBP officers, who not only provided the basis for
recommendations but also pointed out some areas, where the change for the development is
utmost important. Realizing the importance of this section, efforts have been made to give
feasible recommendations, which are pigeonholed under the following headings.
Physical Facilities
The physical facilities or the layout are the most fundamental features in an organization, which
the customers observe in forming an opinion, perception or idea about the organization.
Therefore, every organization tries to make a good first dimple on customers through the
presentation of its physical facilities or layout. The physical facilities in the branch are not up to
the mark, which requires timely changes to provide good environment to customers. The
suggested changes and corrective actions are gives below:
 The lighting system must be improved and all the out of use lights must be replaced.

 Newspaper should be provided to the customers to avoid the pain of waiting long.

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Availability of staff

The existing staff in the Bank is exploited due to the non-availability of more staff. Staff in the
branch must be in proportion to the customer has so as to expedite the workflow, avoid
overloading of staff and remove the customer’s grievances arising mainly due to delay in
workflow.

The additional staff required is in the fallowing categories.

More technically trained staff should be added to the existing staff Strength One staff assistant or
grade 2 officers properly trained in computer and sufficiently trained in foreign currency
accounts.
One employee of grade 4 should be hire on daily wages or contract, to maintain filing.
Needs of Change in Recruitment Policy

It is important to say that the external level market is full of the required talent like MBA, M.
Com etc., but on the country only graduation with simple subjects is still the requisite
qualification for officer’s cadre, which has already worked amply in the devastation of NBP.
Therefore the recruitment qualification to the officer’s framework should be enhanced for simple
graduation, to professionally qualify prefer Masters in their respective fields.
Marketing Concept

The concept of marketing should be followed in every aspect of the organization. Generally, the
bank’s staff considers that marketing is to go to customers, beg them for opening an account with
the Bank and to abide by his every just and unjust action. They should be taught that marketing
is not only to go to customers only. A customer can also be attracted by provided customer
oriented services, showing empathy to your customers and attending him personally.

Information Access

The Bank should provide information to all the present and potential customers relating to the
new products, services, some service’s fee structure and other matters, which are likely to affect
the customers. It should be made sure that all the customers have access to this information.

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Conveying information is of no use, unless, there is some feedback from the customers. The
following measures are suggested to gadget this suggestion. Brochures, handouts, booklets and
other printed reports must be provided to customers, which should provide all the information
necessary to attract and retain customers and to satisfy the customer’s need for more information.
Personal contacts with the customers can help in providing information to customers. All the
customers must be provided a chance to get the desired information by personal contact with the
Bank staff.

Computer Trainings

The present conventional and training programmers need to be made more comprehensive and
reinforced with inclusion of computer training courses.
Training with Clear Objectives

Training needs assessment is necessary so that only the relevant staff is sent for the training
courses.
Customers Orientation

Every entrepreneur if concerned about the success of his business has to understand, recognize,
carefully and appropriately that his customer is “The King” of the business system and the
original spring of the business revenue. NBP should recognize its customers as the mainstream
of the bank’s revenue. They need to be provided the deserved respect, quality and in time service
and to be politely dealt with.
Relocation of branches

NBP should have to maintain their branches in distance of other Allied bank branches, Due to
low distance between Allied bank branches it began to start competition rather than to compete
with competitors.
ATM Network Problem

I have found some problems with ATM network. Many customers have complaints that their
requests placed on ATMs don’t carry out. It is mainly because of bad PTCL lines. Distortion in
lines of PTCL restricts the execution of requests placed on ATM machines by customers.
Although there is a network of dedicated lines for ATM machines, a request may not be

42
successfully carried out because of complicated request processing. A successful execution of a
request needs to be approved from three places:

 The branch (online) with which the customer (placing the request) have the account.

 Main branch of that area (city).

 The head office (in Karachi).

So connecting to all of these three places simultaneously and getting the request approved is a
complicated process. However management claims that there is nothing wrong with processing.
The only problem lies with PCL lines. So to solve this problem the bank should hire technicians
who can work during public holidays to make the ATM use while it shows any distortion.

Loan facility
They should have to provide loan or to introduce finance capacity toward its customer. By
introducing loan Customer ratio will more boost and it get ultimately effects on sale of volume.

12: References

I collect information from;

 National Bank
www.NBP.com

 Google
www.google.com

 Wikipedia
www.wikepedia.com

 Instruction circulars of NBP limited

 Economic reviews for bank and their activities

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13: Annexure

 Internship Letter

13.1: Internship Completion letter:

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