NATIONAL BANK OF PAKISTAN

NAME:ISRA BAIG
STUDENT ID#BC08040163
SPRING 2020

VIRTUAL UNIVERSITY OF
PAKISTAN
L ETTER OF U NDERTAKING
1. S CANNED C OPY OF I NTERNSHIP C ERTIFICATE
 2. D EDICATION
I have dedicated my work to my parents and especially to my dear mother, who made me able to be the person I
am. Without her constant efforts and kind prayers I would have been nothing. May Allah grant her a prosperous,
healthy and happy long life.
 3. A CKNOWLEDGEMENTS
Since the beginning of my Internship program till the writing of this report, many people have helped me through
the ups and downs that I faced. It would be unfair to with if I didn’t name them. I cannot miss to appreciate the
Concern and help of Mr. Waqas Ahmad and Mr. Waqar Anwar whose constant help made me able to write this
report with the technical guidance. I’d also thank the staff of the Lakki Marwat Branch who helped me in each
department, while I was working. They helped me in all aspects of work.
 4. E XECUTIVE S UMMARY
This document is the internship report that states my experience and observation in the NBP , Lakki Marwat
branch. I have formally introduced the bank, stated its vision, mission and goals and have highlighted the offered
products and its main competitors. Afterwards, I discussed the organizational structure by discussing the
organizational hierarchy.

Next, I introduced the branch I was working in, I explained the workforce distribution in the bank, Next I stated my
duration of internship in the bank and the departments that I served. Afterwards, I went through the training
phase in which I was taught about the fundamental processes involved in the working of the bank such as account
opening, dispatching etc.

Next, I explained how banks are managed and planned in order to keep the flow of bank normal. I also discussed
the organization procedures that are followed by employees such as managers, IT experts and then I explained the
role of leaders and their role in controlling the bank.

After that, I have performed the critical analysis of the bank in which I stated how poor the filing system and jobs
management system was. I also stated how the employee-customer relation can be improved and the technology
in use can be improved. Moreover, the low profit and its affects are also discussed. Moreover, the issues regarding
customer-privacy

Finally I stated the aspects of the bank where it shines, the places where it is in the shadows, the potential
opportunities that can enhance the bank’s working and finally the threats that endanger the bank. And then I
concluded the report with my comments.
 5. T ABLE OF C ONTENTS

Letter of Undertaking......................................................................................................................................................3
1. Scanned Copy of Internship Certificate..................................................................................................................4
2. Dedication...............................................................................................................................................................5
3. Acknowledgements.................................................................................................................................................6
4. Executive Summary.................................................................................................................................................7
5. Table of Contents....................................................................................................................................................8
6. Overview of the Organization...............................................................................................................................11
a. Introduction.....................................................................................................................................................11
b. Vision...............................................................................................................................................................11
c. Mission.............................................................................................................................................................11
d. Core Values......................................................................................................................................................11
e. Goal..................................................................................................................................................................12
f. The Product Outlines.......................................................................................................................................12
g. List of Competitors..........................................................................................................................................12
7. Organizational Structure.......................................................................................................................................13
a. Organizational Hierarchy Chart.......................................................................................................................13
8. Internship Activity Plan.........................................................................................................................................19
a. Internship Branch Introduction.......................................................................................................................19
b. Number of Employees Working in the Branch................................................................................................19
c. Starting and Ending Date of Internship...........................................................................................................19
d. Names of Department where I worked...........................................................................................................19
9. Training Program..................................................................................................................................................20
i. Account Opening.........................................................................................................................................20
ii. Remittance and Bill Section.........................................................................................................................21
iii. Clearing Section...........................................................................................................................................21
iv. Foreign Exchange and Advance Loans........................................................................................................23
v. Government Department (Pension)...........................................................................................................23
10. Analysis of Management Functions of the Organization................................................................................24
 a. Planning...........................................................................................................................................................24
i. Organizations planning strategies...............................................................................................................24
ii. Decision Making Process.............................................................................................................................24
b. Organizing........................................................................................................................................................24
i. Organizational Design.................................................................................................................................24
ii. Managing change and innovation...............................................................................................................27
iii. Managing IT and Communication...............................................................................................................27
c. Leading.............................................................................................................................................................27
i. Leadership Style..........................................................................................................................................27
ii. Power and Politics.......................................................................................................................................27
iii. Motivation...................................................................................................................................................27
d. Controlling.......................................................................................................................................................28
i. Controlling of operations............................................................................................................................28
ii. Controlling of performance.........................................................................................................................28
11. Critical Analysis................................................................................................................................................29
a. Organizing........................................................................................................................................................29
i. Poor Filing System Record...........................................................................................................................29
b. Human Resource Management.......................................................................................................................29
i. Job Analysis.................................................................................................................................................29
ii. Employee Appreciation...............................................................................................................................29
c. Marketing Management and Customer Relation Management.....................................................................29
i. Customer Dealing & Satisfaction.................................................................................................................29
ii. Lack of Secrecy of Customer.......................................................................................................................29
iii. Lack of Business Communication................................................................................................................29
d. Information Technology..................................................................................................................................30
i. Lack of Computer Technology.....................................................................................................................30
e. Banking and Finance........................................................................................................................................30
i. Low Profit....................................................................................................................................................30
ii. Manager Authority......................................................................................................................................30
iii. Efficient Banking..........................................................................................................................................30
12. SWOT Analysis.................................................................................................................................................31
a. Strength...........................................................................................................................................................31
i. A Cultural Organization...............................................................................................................................31
 ii. Friendly Policies...........................................................................................................................................31
iii. Special Policies for Industries......................................................................................................................31
iv. One of the Best Research team...................................................................................................................31
v. Strategic Management................................................................................................................................31
vi. Easing the customers..................................................................................................................................31
vii. AAA/A-1+ rated bank..................................................................................................................................31
viii. Having the largest number of accounts in Pakistan...............................................................................32
ix. It is a Government Bank..............................................................................................................................32
b. Weaknesses:....................................................................................................................................................32
i. Rural Sector development is given less attention.......................................................................................32
ii. Lack of Network Capabilities.......................................................................................................................32
iii. Poor Advertisement plan............................................................................................................................32
iv. Lack of Technical Knowledge......................................................................................................................32
v. Ambiguous Job Descriptions.......................................................................................................................32
c. Opportunities:..................................................................................................................................................34
d. Threats:............................................................................................................................................................34
13. Conclusion........................................................................................................................................................34
14. Recommendations...........................................................................................................................................35
15. References.......................................................................................................................................................36
6. O VERVIEW OF THE O RGANIZATION

A. I NTRODUCTION
The National Bank of Pakistan (NBP) is among the largest commercial banks operating in
Pakistan. It redefined its role and by moving from a public sector organization into a modern
commercial bank. NBP was established in 1949 and since then, its network has expanded making
it the largest commercial Bank of the country. NBP headquarter is in Karachi, Pakistan with over
1,250 branches country wide. The bank provides both commercial and public sector banking
services.i

The Bank's services are available to individuals, the corporate entities and Government. While
NBP continues to act as trustee of the public funds and as an agent to the State Bank of Pakistan
(in places where SBP does not have a presence) it has diversified its business portfolio and is
today a major lead player in the debt equity market, corporate investment banking, retail and
consumer banking, agricultural financing, treasury services and is showing growing interest in
promoting and developing the country's small and medium enterprises and at the same time
fulfilling its social responsibilities, as a corporate citizen.

Today, NBP is a progressive, efficient, and customer focused institution. The bank has developed
a wide range of consumer products in order to enhance its business capabilities and cater to the
different segments of the modern society. Some schemes have been specifically designed for the
low to middle income sectors of the population. For NBP’s clear introduction I will explain its
History and also its Mission, Vision, Values and Goals. ii

B. V ISION
For NBP to recognized as a leader and a brand synonymous with trust with highest standards of
service quality, international best practices and social responsibility.

C. M ISSION
NBP aspires to meet up to the values that make NBP truly the Nation’s Bank, by setting the
following goals:

 Institutionalizing a merit & performance culture.

 Creating a distinctive brand identity by providing the highest standard of services.
 Adopting the best international management standard.
 Maximizing stakeholder’s value.
 Discharging our responsibility as good corporate citizen of Pakistan & in country where we
operate.

D. C ORE V ALUES
 Highest standard of integrity.
 Institutionalization of team work & performance culture.
 Excellence in service.
  Advancement of skills for tomorrow’s challenges.
 Awareness of social & community responsibilities.
 Value creation for all stakeholders.

E. G OAL
To enhance the profitability and maximization of NBP’s share through the increasing leverage of
existing customer base and diversified range of products.

F. T HE P RODUCT O UTLINES
National Bank of Pakistan has launched many programs to suit the needs of people of different
sectors. These programs include.

 NBP Advance Salary.

 NBP Saiban.
 NBP Kisan Dost.
 NBP Cash in Gold.

G. L IST OF C OMPETITORS
Following Banks can be termed as the competitors of the National Bank of Pakistan.

 Bank Alfalah
 Muslim Commercial Bank
 Habib Bank
 Meezan Bank
 Allied Bank
 United Bank
 First Women Bank
 Bank of Punjab etc
7. O RGANIZATIONAL S TRUCTURE
A. O RGANIZATIONAL H IERARCHY C HART
The Organizational Chart and Sub-charts are very descriptive. The defined hierarchy 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.
 8. I NTERNSHIP A CTIVITY P LAN

A. I NTERNSHIP B RANCH I NTRODUCTION

I started my internship at the Main Lakki Marwat Branch (whose code is (0426)) from April 15th,
2013 to June 14th, 2013. It’s the main Branch of National Bank of Pakistan that is situated in
Lakki Marwat.

B. N UMBER OF E MPLOYEES W ORKING IN THE B RANCH

The following are the names of employees that are designated at various places in the bank.

Name Designation
Mr. Raza Ullah Khan Manager
Mr. Shoaib Operation Manager
Mr. Mushtaq Khan Officer
Mr. Naimat Ullah Officer
Mr. Haji Umar Gul Govt. Section Officer
Mr. Farouq Khan Officer
Mr. Hameed Ullah Head Cashier
Mr. Yousaf Khan Cashier
Mr. Manzoor Cashier
Mr. Gul Muhammad Chowkidar

C. S TARTING AND E NDING D ATE OF I NTERNSHIP

th
From: April 15 , 2013
To: June 14th, 2013.

D. N AMES OF D EPARTMENT WHERE I WORKED

I have worked in the following departments during my internship at National Bank of Pakistan.

 Establishment
 Account Opening
 Remittance and Bill Section
 Clearing Section
 Dispatching
 Foreign Exchange and Advance Loans
 Government Department (Pension)
9. T RAINING P ROGRAM
While I was doing my internship at NBP I noticed that the theoretical concepts that I have studied at VU
were implemented in almost the whole Branch. The theory and the examples that I studied in financial
accounting about Bank Reconciliation, ledgers, balance sheets were actively and strictly followed. The
defined hierarchy of the organization was strictly followed. POLCA function was at its best, the manager of
the Bank plans, controls and defines the work flow and ensures that the staff is doing its best. I noticed
that our Manager was following Theory X as he was keenly observing each and every staff activity and was
also angry sometimes. The activities mentioned above gave me experience and learning opportunities.
Manager was working as a true leader and was guiding the team very positively, sometimes as he was a
short tempered person and followed all the rules and regulations so I can say that he was a very strict
Manager.

I. A C C O U N T O P E NI NG
Filling the forms and guiding the customers who were unable to fill their forms was my
task, I used to check all the requirements and document attachments, and send to Mr.
Mushtaq who would sign all the documents and then sign from all the concerned
personnel was taken and new account opening was initiated, normally new account
opening takes 3 to 4 days. Here I observed Account opening process. I also learnt about the
basic requirements for opening up an account in NBP. Opening an account means that
customer establishes a relationship between the bank and himself.

Just like other Banks, NBP also makes sure that the Applicant applying for the account is a
intended customer or not. After verifying this, Applicant’s occupation, integrity and nature
of business are determined via references. The margin of error at this time is very less, a
little mistake can lead to greater problems.

To keep the process of account opening concrete and in-order, the Federal Overseer of
the Banks of Pakistan has obligated all the Banks to keep all the details and performas of
the process of account opening along with all the details of the person who introduced the
customer to the Bank. It is because of this Obligation Branch Managers need to get all the
records and Credentials of the Applicant and the Introducer.

During my work span in the Account Opening section I was directed by my seniors to keep
in mind a few points which are the main requirements for an applicant to open up an
account. They are as follows: 

i. Applicant must be introduced or referenced by another existing customer of

the Bank. 
ii. Signatures of the account holder are taken on the account opening forms
and are verified by the Bank Officer. 
iii. Bank requires copy of the NIC’s as well. 
iv. Bank keeps the right to reject the application of the customer without any
reason.
v. A unique account number is allotted to the applicant.
 vi. Nature of the account determines the amount deposited at the time of
opening an account.

During my work-span, and experience at NBP, that when an applicant applies for to
open a new account, the officer at Bank provides the applicant with application form,
the necessary information to be known by the bank need to be filled by the customer.
This application form also requires all the documents and attachments needed from the
customer side.

Basic needs of the Application form are

i. Account Title
ii. Applicant’s Full Name
iii. Customer’s Occupation
iv. Customer’s Address
v. Customer’s Telephone Number
vi. Account’s Currency
vii. Business Nature
viii. Name, Address and Number of the Referencing customer
ix. Accounts= related special instructions
x. Amount to be deposited initially in the account
xi. Applicant’s Signature

II. REMITTANCE A ND B IL L S E C T I O N
Another important department in the bank is remittances. People send their money to
the other persons and organizations through various way i.e. Bank draft, Telegraphic
Transfer, Mail Transfer, Coupons, Govt. Draft and Western Union Money Transfer etc. It
works both inward and outward.

The customers collect their money/amount through bills. They present their cheques,
drafts and other bills for collection within the city and out of the city through mail. Now
a days Online Banking is becoming more popular for this purpose but the branch where I
got training did not have this facility.

Here in Remmitence Department, I used to make Pay Orders, DD’s, fill transaction forms,
cash transfer forms, also made DDR’s, During making these transactions I also kept a
check on the Customer’s account as if it is closed or not. I also worked on the Cash
Counter to give away amounts on cheques after they were entered into our system.
Accepted utility bills from the customers.

III. C L EA R I N G S E C T I O N
I worked in clearing section where my main responsibilities were to clear the cheques
and securities.

There are two stamps put on each cheque, sent for clearing: 

i. Crossing Stamp 
ii. Manager Stamp. 
 CC controls the intra cities cheques. First these cheques are noted down in a daybook,
here different numbers are allotted to these cheques. After entering the cheques and
assigning numbers to it, a performa in which details on who draw the money, cheque
number, the amount, who is taking money are recorded. After this, the cheque is posted
along with its filled performa.

Here I used to enter data on the cheque into the computer system to check weather the
account with-holds this much amount, after the verification of the amount, the
transaction was made into the system and, as the bank still uses the old forms of record
keeping, a register is also maintained and I entered the amount, name of the person
withdrawing the money in case of open cheuque date and signature of the withdrawing
person if it is other than the account holder, and stamped the cheque to declare it to
take money from the counter and give the customer a token and write the token number
on the cheque so the money counter can call the specific customer, here I felt the need of
modern Banking system as they have automatic counters and computerized buzzer
systems which were not available in that Branch of NBP.

IV. D I SP A T C H I N G
DISPATCHING DEFINITION:
Dispatching is physical function, in which we handover the daily transactions to the
operating facility through the release of transactions and instruction with previously
developed plan of activities that are established by the scheduling section of
the department.iii

DISPATCHER:
Dispatcher is a person that will perform the dispatching. Dispatch function determines,
by whom the job shall be done. A dispatcher is familiar with, how to maintain official
documents, how to explore daily transactions.

There are two type of dispatch function.

CENTRALIZED DISPATCH SYSTEM:

In this type of dispatch system, the dispatch department sends transaction directly to
the other branches. It maintains full record of each transaction of each function. It has
following advantages.

A greater degree of overall control can be achieved. Effective co-ordination between

different facilities is possible.

It has greater flexibility

Because of urgency of orders, changes in schedules can be affected rapidly without

upsetting the whole system.

Progress of orders can be readily assessed at any time because all the information is
available at a central place.
 There is effective and better utilization of manpower and machinery.

MY ROLE AS DISPATCHER
My Role as dispatcher was:

i. As communication dispatcher.
ii. As computer aided dispatcher.
iii. Performs duty as shift supervisor/lead dispatcher.
iv. Doing duties of dispatcher for maintaining daily transaction.

V. E S T AB L I S H M E NT :
Establishment is a procedure in which department may find any lackness in the
organization with respect to buildings, enhancement etc.

My role in Establishment department:

i. Assistance to the manager that makes top level decision.

ii. Doing work with manager in the field.
iii. Work in the documentation of making new branch of NBP in the Lakki marwat.

VI. F OR E I G N E X C H A NG E A ND A D V A NC E L O A NS
In modern banking system Foreign Exchange department plays very important role from
every aspect. It is parallel to the general banking with additional functions of imports
and exports business. Foreign exchange is controlled by State Bank of Pakistan. Rules
and regulations are framed by SBP.

In Advanced Loans section I used to check for those customers who have not yet paid
loans and markup amount to the Bank. Every such customer was tracked and called for.
If the payment is made then everything is smooth, but if the customer doesn’t pay the
amount, the bank runs a case against them. I worked on providing loans to different
customers under different schemes; mainly the Rozgar Scheme was targeted. I used to
make the Loan Reports which contained all the customer data and the figure of their
loans to the head office on monthly basis.

NBP also carries the international banking through its Foreign ExchangeDepartment. All
the transactions are carried out at the rate which is authorized by the State Bank of
Pakistan (SBP). For this purpose US dollar has been fixed by SBP and the rate of other
currencies are calculated in accordance with the formula approved by SBP and as
published daily by Foreign Exchange Rate Committee in Karachi. NBP Head Office
ensures that the branches receive the rates published by Foreign exchange rate
Committee on the same day. The Foreign Exchange Department provides the following
services;

 Foreign Currency Accounts.
 Foreign Exchange Remittance Facility.
 Import Advances to Importer.
 Export Advances to Exporters.
 VII. G OV E R N M E N T D E P A RT M E NT (P E NS I O N )
I have spent a week of my internship in the government pension section. Here two
types of pensions are given to the pensioners. 

i. Pension to the retired Government servants. 

ii. Employee old age benefit pension. 

The pension is paid to the pensioners on every date of the month. Every pensioner
have his own copy of pension in which all the details of the pension are listed
including the date of receipt, the amount of money and also any increase if
sanctioned by the govt.

I used to fill the Pensioner’s Pension book, check the previous Pension records to see
when was the last pension taken, as the Government of Pakistan is always making
changes in the Percentages of the Pensioner’s Pension, I used to calculate the variance
in their pension’s and updated pension book of the pension holder. Here I used to
make sure that the Pension holder himself is receiving the Pension to ensure
transparency. I used to sign their pension form with the tickets on it and approve for
cash receipt. First week of the month is always busy and the bank used to be full of
pensioners, there were no special arrangements for the Old people and ladies, people
used to come from far areas to receive their pensions and the Bank did not even have
enough benches to entertain them.

The recent increase in the pension of the retired govt. employees is listed below. 

 Pensioner retired before 31-11-2000 20% increase 

 Pensioner retired after 31-11-2000 15% increase 

Medical allowance is also granted to the pensioner on the following ratio. 

 Pensioners retired in grade below 15 25% increase 

 Pensioner retired in grade above 15 20% increase 

The increase in the family pension

 The family pension below 2300 is increased to 3000 + the medical allowance
on the ratio listed. 

10. A NALYSIS OF M ANAGEMENT F UNCTIONS OF THE

O RGANIZATION

A. P LANNING
Planning determines the organizational goals and the means of achieving them.

I. O RG A N I Z A T I O NS P LA NNI NG S T RA T E G I E S
 The main objective and goal of a commercial bank is to earn profit. National Bank of
Pakistan’s current strategy is to value the customers, and provide services which people
can trust. NBP has a big advantage of distributing Government Salaries and Pensions.

II. D E C I S I O N M A KI NG P RO C E S S
National Bank of Pakistan has the following Decision Making Process.

AT HEAD OFFICE LEVEL

The President of the Bank is the CEO of the Organization. He is the Chairman of the
Board of Directors. The Board is responsible for Policymaking and implementation of all
the major decisions.

The board of Directors also give due weightage to the proposals submitted to them by
the field functionaries by time to time while making policies for bank’s interest. We can
say that there is democratic atmosphere and environment for decision-making Process.

AT REGIONAL OFFICE LEVEL

The Regional Business Chief preside the Regional Management Team (RMT). All
decisions are made by the RMT Collectively. All of the five department’s Regional Chiefs
are the members of this team.

AT BRANCH LEVEL
The branch manager makes decision in association with branch operations manager and
other staff members.

B. O RGANIZING
I. O RG A N I Z A T I O NAL D E S I G N
Organizational Design is the process of developing or changing an organization’s
structure. This involves the decisions of about six key elements, which are: Work
Specialization, Departmentalization, Chain of Command, Span of Control,
Centralization/Decentralization, and formalization.

DEPARTMENTALIZATION
Departmentalization at NBP is pretty elaborative and neat. The following chart can
extensively define the hierarchy of the departments currently working in NBP
 Pr
esi
de
nt
Groups

Divisions

Deptt. Head Office

Regional Offices

Departments at Regional Offices

Wings

Branches

SPAN OF CONTROL

Span of control is the number of subordinates who report directly to a specific manager
in the bank.

There are three types of branch categories i.e. I, II, & III.

Category I Branches: Four employees report to their branch manager.

Category II Branches: Eleven employees report to their branch manager.

Category III Branches: Fifteen employees report to their branch manager.

CHAIN OF COMMAND (O R G A N I Z A T I O N A L H I E R A R C H Y CHART)

 President

Commercial and
Audit and Treasury
Operations Group Retail Banking
Inspection Group Management
Group

Corporate and IT Planning and

Risk Management
Investment Implementation Finance Group
Group
Banking Group

Special Assets Strategic Planning Organization

HR Management
Management and Economic Development
Department
Group Group Department

CENTRALIZATION/DECENTRALIZATION
NBP is a centralized organization.

FORMALIZATION
One of the newer concepts in the organizational design is the team based structure
which is made up of work-groups or teams that performs the organization’s work. NBP
has high departmentalization and more formalization.

WORK SPECIALIZATION

Work specialization is the degree to which the work necessary to achieve organizational
goals is fragmented into various jobs. These jobs are performed parallel to each other
and their combined result is counted as the organizational goal. Another term for this is
division of labor. NBP is emphasizing on work specialization and job specification.
 II. MANAGING C H A NG E A ND I NNO V A T I O N
The change management in an organization is a managerially difficult process. It is
because strategists normally consider a single variable instead of the holistic view of the
organization.

In today’s world perhaps the most frequent and common trigger for organizational
transformation is the technology and its continuous advancement. This transformation
occurs on account of revolutionizing the production process, informational and
communication technologies or other processes such as demand management and,
order fulfillment. It is the technological innovation perceptibly that leads to the
increased efficiency in value chain activities, especially in primary and support activities
of the value chain. NBP is focused towards managing change environment and its
innovations.

III. M A N A G I N G IT A ND C O M M U NI C A T I O N
Today banking is becoming more and more mechanized and it is the I.T. support that
can improve the customer service and reduce the cost involved at the same time. At
NBP we have elaborated plans for transformation of the entire I.T. architecture of the
bank by implementing core-banking solutions. The said technology will not only increase
our distribution by many folds but it will also simplify our internal procedures thereby
reducing the transactional cost and lead-time for service.

But NBP still lacks in IT field from different other Banks. NBP needs to come with new
trends of Online Banking and Accounting.

C. L EADING

I. L E AD E R S H I P S TY L E
NBP is adopting democratic style of leadership in which employees’ involve in decision-
making process. The bank uses the user feedback to coach employees for decision-
making process. Democratic leadership style could contribute to both the quantity as
well as high quality of work.

II. P O WE R A ND P OL I T I C S
The politics involved in any organization has a very significant role in shaping its future.
The politics is the role-playing with the sense of responsibility. The leadership skills of
the person in charge significantly shape the future of the bank. If the leader is not
proving himself to be a good leader, then the people working under him can use
democratic power to change him.

III. MOTIVATION
The leader plays a very important role of uplifting the employees in any hardship. The
job in the bank is very time consuming and requires motivation and support from the
leadership. The leader acts as a guide for the employees and his technical superiority is
very important for the employees.
D. C ONTROLLING
I. C O N TR O LL I N G OF OP E R A T I O NS
The bank is committed and focused towards good quality customer service and in
2007 with the motto of ‘Putting as smile on our Customers face’, it made concerted
efforts and took a number of initiatives in order to improve the user experience and
bank’s operation capabilities. Workshops and seminars were conducted in order to
disseminate the very important message of “excellent customer service”. It is
transforming the bank’s branches to give a modern look and convenience to. A number
of branches have been shifted to prominent and spacious locations. It also has
established specialized customer facilitation centers to exclusively cater to pension
payments, utility and government collections. These are expected to reduce counter
traffic at our branches and will increase our distribution channels for better and
convenient services. Business hours have been extended with the establishment of
customer facilitation offices at the regional levels in order to help on the spot resolution
of customer complaints.

II. C O N TR O LL I N G OF P ER FO R M A NC E
 Internal control is the fundamental control of any bank branch. The adequacy
of internal controls determines largely the risk profile of the respective
branch. Almost all the potential frauds can be analyzed all the way to the stem
from faulty internal controls or their absence.
 Since internal controls have evolved over the years, NBP has accepted them
without question-until now. Technology of computerization, which has
changed the very face of Banking, has compromised many of the internal
controls not only because of other reasons such as execution of a transaction
in a different procedure.
 Monitoring progress towards goal achievement and taking corrective action
when needed. NBP is emphasizing on controlling to integration of the
activities, plans, attitudes, policies and efforts of the people of the Bank
working together to provide reasonable assurance that the organization will
achieve its objectives and mission.
11. C RITICAL A NALYSIS

A. O RGANIZING
I. P O OR F I L I N G S Y S T E M R E C O RD
During my internship in the bank, I observed that the filing system of the bank is not
modern and thus, it has a lot of potential for development and can be optimized and
upgraded by using databases and computerized system.

B. H UMAN R ESOURCE M ANAGEMENT

I. J O B A N AL Y S I S
The job analysis of the bank made me realize that some people are simple graduates
therefore during the hiring trained, skillful and job oriented people are encouraged
for the job.

II. E M P LO Y E E A PP R E C I A T I O N
Another very important thing which is ignored by the bank is appreciation which is
given to the employee on their good performance. Hard work and performance of
employee is not recognized and appreciated which crates dissatisfaction and
performance decline.

C. M ARKETING M ANAGEMENT AND C USTOMER R ELATION

M ANAGEMENT
I. C U S TO M E R D E A L I NG & S A T I SF A C T I O N
In NBP the dealing between the customer and the teller is well organized but during
the rush customers have to wait for long periods therefore it is very hard for a
potential customer to get the information. Facilities for customer service are not
proper and sometime customer feels hesitation before approaching a system which
is apparently complicated due to poor presentation.

II. LACK OF SECRECY OF CUSTOMER

The Bank duty is based on secrecy but employee don’t maintain secrecy especially
during the rush they speak loudly account position and clearance of cheque so
person can get whole information from the ledge.

III. LACK OF B U S I NE S S C O M M U NI C A T I O N
There is no appropriate way to provide information to the customer. The Bank loses
your confidence if a minor dissatisfaction is created and tension in the mind of
customer.
D. I NFORMATION T ECHNOLOGY
I. LACK OF C O M P U T E R T E C H NO L OG Y
One of the problems that were faced by the employees was the lengthy procedure
of the paperwork. Moreover, the lack of computer technology is burdened over the
bank employee so they are unable to give proper attention on the clients and
understand their difficulties during the doing job.

E. B ANKING AND F INANCE

I. L O W P R OF I T
NBP provides low profit rate to their customer so most of the customers have shifted
their account to the National Saving Center due to their high profit. NBP should
increase their profit rates in order to attract the customer.

II. E F FI C I E N T B A NKI NG
Efficient banking is don’t emphasize on number of accounts but grater amount of
deposit while in NPB account are more but depositing are low.

F. C ONTROLLING
I. M A N A G E R A U T H OR I T Y
Manager has a limited authority he just approves the job so that when manager is
not present in his office. The customer having a wait for many hours and I observed
that there are delays in sanctioning loan cases form the head office which causes
dissatisfaction to the customer.

G. P LANNING
I. I N C O M P E T E N T HOD’ S
I noticed during my work-span that the HOD’s in the bank used to slack during the
peak hours, HOD’s should be more active during the bank peak hours and interact
more with the customers to boost their confidence in the Bank. Theory X should not
be followed but the Theory Y should be followed to ensure more friendliness in the
air and higher customer satisfaction.

II. LACK OF P LA NNI NG A B IL I T I E S

I noticed that during the workload periods such as Pensioner’s first week of the Month,
there was no efficient plan devised by the Manger, he used to just sit around and wait
for things to happen, while employees do get frustrated and they do not work by heart
which in turn effects the Bank’s productivity.
12. SWOT A NALYSIS
For the Environmental scanning of the organization SWOT analysis is done. It is the analysis of Strengths,
Weaknesses, Opportunities and different Threats an organization may face from the external
environment. NBP’s SWOT analysis is:

A. S TRENGTH
Major Strength of National Bank is its Brand Image and its Brand Name. NBP is considered to be
the Pillar of Pakistan’s economy. NBP has the caliber to compete with Pakistan’s best Multi-
National Banks and has the ability to keep up with the newly emerging trends of modern banking
and computer systems. Over the years, NBP’s reserved funds have been increased. NBP is
expanding business worldwide which truly is an advantage over rest of the Banks in the Business.
NBP holds a vast group of customers globally and locally. A few more strengths of NBP are.

I. A C UL T U R A L O RG A NI Z A T I O N
Being a trustee and an agent of State Bank of Pakistan, NBP takes pride in being a
cultural organization, helping customers and citizens of all walks all around the country
and is one of the few Banks which has presence in every city of Pakistan.

II. F R I E N DL Y P O L I C I E S
Unlike other Banks in Pakistan, NBP ‘s customer relation and customer management
policies are more intended towards the customer and are friendly, which in-turn
increases the customer trust on the Bank increasing profits. Schemes like Kisan Dost,
and Rozgar scheme have helped many people to grow their businesses.

III. S P E C I AL P OL I C I E S FO R I ND U S T R I E S
Schemes like Investor Advantage promote Industries; NBP has a huge pool of Industrial
customers at its disposal.

IV. ONE OF T H E B E S T R E S E AR C H TEAM

As stated before, as a trustee of the State Bank of Pakistan, National Bank has an elite
class of researches and Financial think tanks, who are constantly working on making the
Bank’s operations more smooth and reliable and attaining the efficient results.

V. S TR A T E G I C M A NAG E M E NT
The top management of the Bank as stated earlier is highly strategic; they devise the
strategies after consulting with the researchers, and approve strategies which in turn
benefit the Bank in long run.

VI. EASING T H E C U S TO M E R S
Having Branches all over the country is one way of providing ease to customers, along
with this facility of having a local Bank, NBP’s policies are highly customer oriented.

VII. AAA/A-1+ R A T ED BA NK
 State Bank of Pakistan has rated NPB as AAA/A-1+ Bank. This indeed shows the strength
of the Bank.

VIII. HAVING T H E LA RG E S T NU M B E R OF A C CO U NT S I N P A KI S T A N
Due to having branches in all over the country NBP has achieved the milestone of having
largest customer pool as compare to any other Bank in Pakistan.

IX. IT IS A G O V E R NM E NT B A NK
Most of the Government Issues, like pensions, funds and other funds are dealt by NBP,
being a Government Bank; it serves the people in every way, where State Bank cannot
reach.

B. W EAKNESSES :
Downsizing has been the biggest weakness of NBP. Many devoted employees were asked to
leave because of the downsizing. Lot of confusion is found in the employees.

High level Managers are hired from famous institutes and organizations. As those employees
have a different background, it makes it difficult for them to make healthy decision which can be
in benefit of this bank. Downsizing caused many customers of NBP to leave. This downsizing
caused threats to the bank as the competitors took advantage. NBP is losing the Market share
and its customer’s streamline. Few major weaknesses of NBP are given below.

I. R U RA L S E C T OR D EV E L OP M E NT I S G I V E N L E SS A TT E NT I O N
Keeping the fact in mind that I worked in the Main Lakki Marwat Branch, I observed that
very little attention was given to our bank, the more farther you go from big cities, the
less attention is given to the Banks.

II. LACK OF N E T WO R K C AP A B IL I T I E S
Networking Infrastructure in our Bank was pathetic. Also the communication between
the branches is very hard and time consuming.

III. P O OR A D V E R T IS E M E NT PL A N
During my internship and when I wasn’t doing internship, I have always seen NBP on a
back foot when it comes to advertisement. No advertisement plans are implemented; I
could hardly find any brochure or flare in our Branch.

IV. LACK OF T E C H NI C A L K NO WL E DG E
I observed the employees of the NBP are not technical y well equipped, they lack the
basic know how of the computer.

V. A M B I G U O U S J O B D E S CR I P T I O NS
Roles of the employees are not properly defined, I saw quiet a few workers changing
seats, handling cash, entertaining customers, the job descriptions shall be properly
written and implemented strictly.
C. O PPORTUNITIES :
A very bright professional future lies ahead of NBP. NBP has devised a huge plan to earn back its
lost position and the customer streamline from just like they had in the past and to increase their
profitability and regain the trust of the customers just like they used to have in the past.
Furthermore, NBP is the only bank which gives general public the ease of submitting their utility
bills all day long. The goodwill of the NBP is something that no competitor can achieve the way
NBP has done it.

I. G OO D I M A G E A M O NG T H E P EO PL E
Being the People’s bank and having trust of the customers is a great advantage for the
Bank to achieve new horizons of Banking and success.

II. R AP I D I N D U S T R I AL GR O WT H
Industrial growth in the country is a great opportunity for the Bank to introduce new
opportunities and schemes for industrial customers and increase the Bank’s Potential.

III. NOW I N T R O D U C I NG T H E M I C RO FI NA NC I NG
Micro Financing has also been introduced to attract big investors.

IV. A G E N T OF S T A T E B A NK OF P A KI S T A N
as stated few times earlier, being the trustee and agent of the State Bank Pakistan, this
mark and label can help the Bank to achieve success in the coming future.

V. TRAINING A ND D I S C I PL I NE
Bank staff should be more professional and equipped with the Basic IT Knowledge and
know how to use the Computers.

D. T HREATS :
Small Banks are not a threat to NBP’s reputation as the Customer Pool of NBP is full of huge
investors so these small banks cannot threat the integrity of NBP. But the major rivals of the Bank
include HBL and Bank Alfalah which can be a threat to NBP as they are emerging very fast. Some
of the other treats that NBP is facing are:

I. P O L I T I C AL I N S T AB I L I T Y IN THE C O U NT R Y
Political Instability in the Country is a very major threat for the Bank as the Bank is acting
as the trustee of State Bank Of Pakistan.

II. N E WL Y E M E R G I NG C O M P E T I T OR S
Increasing competition is resulting in loosing the customers.

III. LACK OF M OD E R N T E C H NI Q U E S
NBP lacks the Modern Banking Techniques. Which gives its competitors an advantage to
take over the bank in customer number.

IV. I N C R E A S I N G C U S T O M E R C O MP L A I NT S
Customers are complaining about the incompetency of the staff.
 V. C O MP E T I T I O N I S I NC R E A S I NG D AY BY DA Y
New banks are opening, competition is increasing, NBP needs to improve quality or they
will end up losing their existing customers too.

13. C ONCLUSION
During my entire training program, beginning from the internship till writing this report, I have realized
that the National Bank of Pakistan is a deliberate structured organization and it is serving its customers
all over Pakistan through its wide spread network of branches. It is offering many services and products
at easy markup rates to the valued customers. The customers are valued and are served at the first
priority. The employees of the Bank are very much cooperative and work whole heartedly thus working
hard for the success of the Bank.

Selections are made on the basis of merit but references and approaches are very much popular in
National Bank of Pakistan. The Bank serves the people well and it has initiated special moral initiatives
while distributing pensions among people, especially the old age people who come from far areas to get
their pensions. They are dealt very kindly and the Bank atmosphere is very customer friendly.

14. R ECOMMENDATIONS
The following are the some positive suggestion & recommendation for the NBP.

 In my opinion the transaction process should be short so that the time is saved for both the
customers and the bank.
 Staff strength should be optimized and professional qualified persons should be hired on the
basis of merit.
 Personal Marketing & Professional attitude.
 Remove the Nepotism & Create Delegation of Authority.
 It is recommended that proper training should be provided to the staff members which will
ultimately increase the performance of Bank over all.
 To sustain the job satisfaction, NBP needs to offer promotions and incentives from time to
time.
 Environment and Atmosphere should be more renovated and decorated at the Branch
offices.
 The bank should spend more on renovation of the branches to improve environment and
atmosphere to attract the customers.
 NBP needs to implement computer software to handle the load of work.
 There is lack of counters in the bank; more counters shall be introduced to facilitate the
customers.
 NBP needs to launch mobile banking
 Only two guards were present at the branch, the security level was not so good at the
branch; security needs to be looked after.
  For old aged customers and pensioners the Bank needs to introduce a new counter as well
which is dedicated to them all day long.
 I saw no inspection team come in for inspection during my work span, inspection teams
should work more efficiently.
 At our branch there was no separate counter for Utility bills, there should be a separate
counter for all sorts of utility bills.
 They need to enhance the process of allotting loans to be in a quicker manner.
 Provide real information to the Shareholders.
 NBP is now needed to invest in those industries which are profitable for it e.g. Pakistan Film
Industry, Once again Establish the Textile Industry, Armed Force Weapon Industry & also
provide the Micro finance for the Home Industry.
 All of the above eventually provide satisfaction to the customer.

15. R EFERENCES
i
From Wikipedia http://en.wikipedia.org/wiki/National_Bank_of_Pakistan
ii
The official website of National Bank of Pakistan http://www.nbp.com.pk/index.htm
iii
References taken from the following website http://www.mbaknol.com/operations-management/dispatch-function-
in-production-management/