NATIONAL BANK OF PAKISTAN

SHAHDADPUR BRANCH, SHAHDADPUR

PREPARED BY:
AAMNA SHABBIR

INSTITUTE OF COMMERCE
UNIVERSITY OF SINDH, JAMSHORO
2019
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 ACKNOWLEDGEMENT

I would like to articulate my immense gratitude to

Supervisor, Institute of Commerce, for his remarkable, encouraging,
untiring, and valuable guidance, cooperation and suggestion
during the execution and accomplishment of internship.

I am also thankful to the Manager National Bank of

Pakistan and all National Bank of Pakistan officers for their
undenied worthwhile suggestions and recommendations that
extended me a hand during the internship, and which made it
possible for me to fulfill and achieve all objectives of internship
report.

AAMNA SHABBIR
INSTITUTE OF COMMERCE
UNIVERSITY OF SINDH, JAMSHORO.

ii
 PREFACE

This internship report consists of five chapters. Chapter 1 carries the complete
introduction of internship, along with its purpose, and introduction of
NATIONAL BANK OF PAKISTAN (NBP), its history and functions of bank.
Chapter 2 engross details about organizational structure of NBP. Chapter 3 is
all about NBP departments and operations (Financing, Accounts etc.) and some
of the NBP products and services. Chapter 4 denotes SWOT Analysis, Ratio
Analysis. Chapter 5 comprises my experience during the internship and consist
of conclusion and recommendations.

Banks play a pivotal role in stabilizing a country’s economy. Banks nourish a

country and its society and make its currency more mobilized within and outside
the country in order to make a country economically, socially, and politically
developed. Banks take deposits from remote areas, give financial assistance to
needy (in return for interest), and provide loans for investments, where
opportunities of country establishment exists. It ultimately increase a country
chances of growth.
National Bank of Pakistan is one of the leading banks in Pakistan. It is one of
the scheduled banks of Pakistan. It acts where State Bank of Pakistan is unable
to extend its operation. According to international standards of banking system
it is one of the best banks in south Asian region. This report explains how
different functions of NBP works and what are their services. This write-up
denotes that what is the purpose of my internship, what is its structure, its review
and organizational structure.

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 TABLE OF CONTENTS

Contents Pages

1. INTRODUCTION TO ORGANIZATION (NBP)

1.1. OBJECTIVES OF STUDYING THE ORGANIZATION 2-5

1.2 INTRODUCTION TO NBP 5-6
1.3 HISTORICAL BACKGROUND 6-9
1.4 OBJECTIVES OF NATIONAL BANK 9
1.5 VISION OF NBP 10
1.6 MISSION OF NBP 10
1.7 CORE VALUES OF NBP 10
1.8 FUNCTIONS OF NBP 11

2. ORGANIZATINAL STRUCTURE OF NBP

2.1. ORGANIZATIONAL STRUCTURE 13-14

2.2. MANAGEMENT STRUCTURE OF THE NBP 14-24

3. DEPARTMENTS OF THE NBP

3.1 FINANCING DEPARTMENT 26

3.2 REMITTANCE DEPARTMENT 26
3.3 ACCOUNTS DEPARTMENT 27
3.4 CLEARING HOUSE DEPARTMENT 27
3.5 FOREIGN REMITTANCE DEPARTMENT 27
3.6 CASH DEPARTMENT 28
3.7 DEPOSIT DEPARTMENT 28
3.8 COMPUTER DEPARTMENT 29
3.9 PENSION DISBURSEMENT DEPARTMENT 29
3.10 PRODUCTS AND SERVICES OF NBP
A) ACCOUNTS OF NBP 30
1). CURRENT DEPOSIT 30-31
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 2). PLS SABING ACCOUNT 31-32
3) FIXED DEPOSIT 32-33

B) SERVICES OF NBP
1) DEMAND DRAFT 33
2) LETTER OF CREDIT 33
3) TRAVELERS CHEQUES 34
4) PAY ORDER 35
5) FOREIGN REMITANCE 35-36

C) PRODUCTS OF NBP 36-39

4. SWOT ANALYSIS

4.1 STRENGTH 41-43

4.2 WEAKNESS 43-44
4.3 OPPORTUNITIES 45
5.4 THREATS 45
4.5 RATIO ANALYSIS 46

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 MY EXPERIENCE DURING INTERNSHIP 48-49

5.2 CONCLUSIONS 50

5.3 RECOMMENDATIONS 51

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 Chapter#1
INTRODUCTION TO
ORGANIZATION (NBP)

1
1.1) OBJECTIVES OF STUDYING
THE ORGANIZATION:
INTRODUCTION

This chapter covers the internship report and rationale behind writing it. This
INTERNSHIP REPORT is all about banking sector because I did my internship
in a banking organization. Different commercial banks are working in Pakistan
for the growth of the country. This chapter includes origin of banking,
background of the study, objectives of the study, research methodology, its
limitations. Also include the introduction of NBP, History of NBP, objectives,
vision, missions, core values and functions of NBP.

A) ORIGIN OF BANKING
Banking is a system arises simultaneously with the use of notes. A note
has come into Use in the seventeenth (17th) century in England when many
people held their wealth in gold. During the civil war, people were frightened
of being robbed so they looked for someone who had safe vault. The obvious
choice was the local goldsmith who had a safe vault available in which they
kept their old coins and billions (is the name given to un-coined refined gold
and silver generally in the shape of bars or bricks). So it came about that
goldsmiths took these deposits for safe keeping on charge of a fee and issued a
receipt which acknowledge the deposits of money and incorporated a promise
to return it on demand. More and more people come to hold these receipts. Thus,
the original purpose of receipt became obscure as it function as a promissory
note, which promises to pay became all important.. In time people stop calling
them receipts and began to describe them as “notes”. Thus the goldsmiths
emerged the first bank.

2
 A bank is a financial institution licensed to receive deposits and make
loans. Banks may also provide financial services, such as wealth management,
currency exchange and safe deposit boxes. Bank is indicated as primitive as
human society forever since man come to realize the importance of money as a
medium of exchange. Organizations where people and business can invest or
borrow money, change it to foreign money.
“Banking Business” means the business of receiving money on current or
deposit accounts, paying and collecting cheques. Making advances to
customers. Accounting for trillions is assets worldwide the banking system is a
crucial component of global economy.
Today the world “bank” is used as a comprehensive term for a member
of institutions carrying out the certain kind of financial business. In practice the
word “Bank” means it borrows money from one class of people and lends to
another class of people for interest.

B) BACKGROUND OF THE STUDY

The primary purpose of this study is the fulfillment of the requirements

for the degree of Master in Commerce (MCOM). For this connection each student
of this particular course is required to undertake training in a relevant organization
selected by them, for a period of six to eight weeks.

C) OBJECTIVES OF THE STUDY

The secondary purpose of the study in hand is to gather relevant

information to compile internship report on NATIONAL BANK OF PAKISTAN.
To observe, analyze and interpret the relevant data competently and in a useful
manner. This internship is also vital to gain confidence and become aware of the
mechanism of an organization. As an internee, I want to achieve following
objectives during the internship and study of the organization.
• To familiarize with the organization.

3
 • To familiarize with the different departments of the organization and its
functioning.
• To understand how information is used in an organization for decision
making at different levels.
• I was also keen to gain professional experience in an actual testing
environment.
• To apply theoretical knowledge to practical situations.
• To have an exposure of an organization financial issues, its operations,
its code of conduct.
• To develop my attitude conducive to effective interpersonal
relationship.
• To identify real time opportunities and threats.
• To examine unexpected situations and suggest corrective measures.
• To enhance my knowledge of the discipline of banking administration.
• To acquire good work habits and sense of responsibility.
• To improve report writing skills.
• To develop good communication and technical skills.

D) RESEARCH METHODOLOGY

While conducting the research study at National Bank of Pakistan two

business research methods were followed for the collection of data, which are
primary data, and secondary data.

i. Primary data

Primary data is one that is collected for the first time and has not been
passed through any statistical methods. Primary data include personal
observations, lectures/orientation and interviews of the staff members.

4
ii. Secondary data

Secondary Data are those, which have already been collected by

someone and have gone through the statistical process. Secondary data can
almost always be gathered faster and at a lower cost than primary data.
Secondary data consists of Magazines, annual reports and internet.

E) LIMITATIONS

There were some limitations which internee had to face during the internship
program, which are described as under.
❖ It was difficult to analyze the organizations current position and the working
efficiency and the role in country’s development due to complex procedures and
lack of guidance.
❖ The time was very short to seek complete knowledge regarding functioning of
each division/department and head office.
❖ Lower staff was not trained; therefore they were unable to satisfy the queries.
❖ Head office did not provide the relevant data promptly.

❖ Management avoided giving every information they kept most of data secrets, so
it was very difficult to collect the relevant information.

1.2) INTRODUCTION TO NBP

The National bank of Pakistan is a Pakistani government-owned

commercial bank, which is a subsidiary of State Bank of Pakistan. The bank
provides both public and commercial sector banking services. NBP is one of the
leading commercial bank and has worldwide network of branches with
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 extensive banking, leasing and discounting along with treasury work of
provincial and federal government on behalf of state bank of Pakistan. The
National bank of Pakistan came into existence on November 29, 1949.

The bank has distinction of acting as an agent of SBP and

operates treasuries of government where the SBP does not have any office or
branch. It is a lead player in the Debt Equity market ,corporate investment
banking , retail and consumer banking agriculture financing ,treasury services.
As of March 2017 it has 1,450 branches across Pakistan with assets of
approximately USD 17.2 billion. It also operates a number of offices overseas that
include Beijing Tashkent Chicago, London and Toronto. National bank of
Pakistan has developed a wide range of consumer products to enhance business
and cater to the different segments of society and meet its social responsibilities.
Some schemes have been specifically designed for the low to middle income
segments of the population.

It has implemented special credit schemes like small finance for

agriculture, business and industries, administrator to Qarz-e Hasna loans to
students, self-employment schemes for Unemployed person, public transport
schemes. The Bank has expanded its range of products and services to include
Shariah Compliant Islamic Banking products. It has also put in place a remittance
services for overseas Pakistanis to send their money back to Pakistan. Customer
Social Responsibility is a new department which provides social services for
Education, health and Women Empowerment. The bank has also played crucial
role in increasing volume of trade of the country.

1.3) HISTORICAL BACKGROUND

The history of National Bank of Pakistan is part of Pakistan’s struggle for

economic independence. National Bank of Pakistan was established on November
9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope

6
with crisis condition which were developed after trade deadlock with India and
devaluation of Indian Rupee in 1949. Initially the bank was established with
objective to extend credit to the agriculture sector. The Normal procedure of
establishing a banking company under the companies law was set aside and the
Bank was established through the promulgation of an Ordinance, due to the crisis
situation that had developed with regard to financing of jute trade

The Bank commenced its operations from November 20, 1949 at six important
jute centers in then, East Pakistan and directed its resources in financing of jute
crop. The Banks Karachi and Lahore offices were subsequently opened in
December 1949. The National bank of Pakistan came forward to establish its
offices in the cotton growing areas and extended credit facilities liberally in order
to restore stability to the market. In 1951, the country was once again faced with
a crisis in the cotton trade when prices was crashed and touched the lowest level
since independence following the cessation of hostilities in Korea.

The bank in collaboration with the cotton board provided the necessary credit
facilities to the trade and the crisis was tided over. The nature of responsibilities
of the bank is different and unique from other banks/financial institutions. The
Bank acts as an agent to the State bank of Pakistan for holding Provincial/Federal
Government Receipts and payments on their behalf. The Bank has also played an
important role in financing the country’s growing trade, which has expanded
through the years as diversification took place.
National Bank of Pakistan is today a progressive, efficient and customer focused
institution. It has developed a wide range of customer products, to enhance
business and cater to the different segments of society. Some schemes have been
specifically designed for the low to middle income segments of the population.

These include NBP Karobar, NBP Advance Salary, NBP Saibaan, NBP
Kisan Dost, and NBP Cash and Gold.

The National Bank of Pakistan has implemented special credit schemes like
small finance for agriculture, business and industries, administrator to Qarz-e-
Hasna loans to students, self-employment scheme for unemployed persons, public
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transport scheme, The Bank has expanded its range of products and services to
include Shariah Compliant Islamic Banking products. For the promotion of
literature, NBP recently initiated the Annual Awards for Excellence in Literature.
NBP will confer annul awards to the best books in Urdu and in all prominent
regional languages published during the defined period. Patronage from NBP
would help creative work in the field of literature.

The Bank is also the largest sponsor of sports in Pakistan. It has provided
generously to philanthropic causes whenever the need arose. National bank has
earned recognition and numerous awards internationally. It has been recipient of
The Bank of The Year 2001, 2002, 2004 and 2005 Award by the banker magazine,
the Best Foreign Exchange Bank – Pakistan for 2004, 2005, 2006 and 2007,
Global Finance Best Emerging Market Bank from Pakistan for the year 2005,
Global Finance, Kisan Time Awards - 2005 for NBP’s services in the agriculture
field. It is listed amongst the Region’s largest banks in South Asia 2005, The
Asian Banker. It has also been presented a Recognition Award - 2004 for having
a Gender Sensitive Management by WEBCOP AASHA besides other awards.

The precise summary of National Bank of Pakistan regarding its countrywide

and overseas operations is as follows:

• 1949 National Bank of Pakistan (NBP) was established under the

National Bank of Pakistan Ordinance 1949 and was 100 % government-
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 followed.
• 1950 NBP established a branch in Jeddah, Saudi Arabia.
• The Bank in 1950 had one subsidiary “The Bank of Bahawalpur” on
December 4, 1947 by the former Bahawalpur State.
• 1955 by this time NBP established a branch in London and Calcutta.
• 1957 NBP established a branch in Baghdad, Iraq.
• 1962 NBP established a branch in Dar-us-salaam, Tanganyika.
• 1964 The Iraqi Government nationalized NBP’s Baghdad branch.

8
 • 1965 The Indian Government seized the Calcutta branch on the outbreak
of hostilities between India and Pakistan.
• 1967 The Tanzanian Government nationalized the Dar-Es-Salaam
branch.
• 1971 NBP acquired Bank of China’s two branches, one in Karachi and
one at Chittagong. At separation of East Pakistan NBP lost its branches
there. NBP merged with Eastern Mercantile Bank and with Eastern
Bank Corporation.
• 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 amalgamated Mehran Bank (est.1991).
• 1997 NBP’s branch in Ashgabat, Turkmenistan commenced operations.
• 2000 NBP opened a representative 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%.
• 2003 NBP opened its branch in Kabul, and the first ATM in Afghanistan
was installed there.
• 2005 NBP closed its offshore branch in Cairo.
• 2010 NBP opened its branch in Karaganda (Kazakhstan).
• 2011 NBP opened its representative office in Toronto (Canada).

1.4) OBJECTIVES OF NBP

The main objectives of NBP has been:

➢ To inculcate banking habits among the people in order to mobilize their

saving.
➢ To serve the national people with different products and services.

9
 ➢ To make tremendous contribution to the economic development of the
country.
➢ To pursue a policy of rapid economic development and growth by
extending its services to almost every potential sector of economy. Its
services have been increasing continuously and are being brought within
an easy reach of the ever growing number of clients.

1.5) VISION OF NBP

“To be recognized as a leader and a brand synonymous with trust, highest

standards of service quality, international best practices and social responsibility”

“To be a Leading Bank for Partnering in Financial Growth through Innovation

and Service.”

1.6) MISSION OF NBP

To be a Catalyst for Economic Growth, Serving the Nation Through Diversified

Product Offering, Innovation, Superior Service Quality, Universal Banking
Capabilities, Multiple Delivery Channels, Investment in People And Processes
and Work Towards Sustainable Higher Returns for Stake Holders.

1.7) CORE VALUES

• People: We will continue to value our People and will reward

performance.
• Service: Our main focus will be on providing Superior Service Quality through
Diversification and development.
• Integrity: We will not Compromise on Integrity – zero tolerance for corruption
and believe in doing the right thing.

10
 • Respect: We respect our Customer Needs, Beliefs and Values, Work Towards
their Benefits.
• Excellence: We will continue to Strive for Excellence in All That we Do.

1.8) FUNCTION OF NBP

NBP is a commercial bank it performs a variety of functions. NBP has 1504

domestic branches and 21 international branches at present. The nature of
responsibilities of the bank is different and unique from other banks/financial
institution. The bank also handles treasury transactions for the governments of
Pakistan as an agent to the state bank of Pakistan for handling provincial federal
Government Receipts and Payments on their behalf. The National bank of
Pakistan has also played an important role in financing the country growing trade,
which has expanded through the years as diversification took place .The Bank is
providing all banking services of mercantile and commercial banking services of
mercantile and commercial banking permissible in the country which include:

• Accepting of deposits of money on current, saving, fixed term deposit

and profit and loss sharing accounts.
• Borrowing money and arranging finance from other banks.
• Advancing and lending money to its clients.
• Receiving of Bonds, valuables etc. for safe custody.
• Transacting Guarantee and indemnity business.
• Undertaking and Executing Trusts.
• Buying, Selling, Dealing including entering into forward contact of
foreign Exchange.
• Participating in ‘world bank’ and ‘Asian Development Bank’ line of
credit.
• Financing of products, including technical assistance, project appraisal
through long term finance and musharika certificates etc.

11
 Chapter#2
ORGANIZATIONAL STRUCTURE
OF NBP

12
2.1) ORGANIZATIONAL STRUCTURE

“An organization Structure defines how activities such as Task allocation,

coordination, and supervision are directed toward the achievement of
organizational aim”

A well-developed and properly coordinated structure is an important

requirement for the success of any organization. It provides the basic framework
within which functions and procedures are performed. Any organization needs
a structure which provides a framework for successful operations. The operation
of an organization involves a number of activities, which are related to decision
making, and communication of these decisions. These activities must be well
coordinated so that the goals of the organization are achieved.

It determines which individuals get to participate in which decision-making

processes, and thus to what extent their views shape the organization's actions.
Organizational structure can also be considered as the viewing glass or
perspective through which individuals see their organization and its
environment.

Organization structure describes the Organization`s framework just as human

beings have skeleton that defines their parameters. An organization can be
structured in many different ways, depending on its objectives. The structure of
an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for
different functions and processes to different entities such as the branch,
department, workgroup and individual.

According to classicists (Taylor, fayol, Weber) organization structure is

essential for achieving the organizational goals. The managers determine the
work activity to get the job done, write job descriptions and organize peoples
into groups and assigns them to supervisors. He then fixes goals and deadlines

13
 and establishes standard of performance. By analyzing the organization
structure of the branch following elements can be found in the structure.
• Centralized decision making
• Downward communication
• Chain of command
• Authority and responsibility
• Delegation

2.2) MANAGEMENTT STRUCTURE OF NBP

2.2.1. BOARD OF DIRECTORS:

Pursuant to Section 11 of The Banks’ (Nationalization) Act, 1974, the number of

Directors of the Bank shall not be less than 5 and not more than 7, excluding the
President. The Federal Government may, if deems necessary, appoint a Chairman of
the Board in respect of the Bank. At present National Bank of Pakistan’s Board of
Directors consist of 7 Directors and a President who is the Chief Executive of the
Bank and presides over the meetings of the Board. The responsibilities of Directors
include the followings.

1. The Board of Directors shall assume its role independent of the influence of
the Management and should know its responsibilities and powers in clear
terms.
2. The Board shall approve and monitor the objectives, strategies and overall
business plans of the institution.
3. All the members of the Board should undertake and fulfill their duties &
responsibilities keeping in view their legal obligations.
4. The Board shall clearly define the authorities and key responsibilities of both
the Directors and the Senior Management.

14
 5. The Board shall approve and ensure implementation of policies, including but
not limited to, in areas of Risk Management, Credit, Treasury & Investment,
Internal Control System and Audit, IT Security, Human Resource,
Expenditure, Accounting & Disclosure, and any other operational area which
the Board may deem appropriate from time to time.
The Following table mentioned the names & designation of Board of Directors of
National Bank of Pakistan.

Mr. Zubyr Soomro

Chairman

Mr. Arif Usmani

President and Chief Executive Officer

Mr. Muhammad Naeem

Director

Mr. Farid Malik, CFA

Director

Mr. Muhammad Sohail Khan Rajput

Director

Ms. Sadaffe Abid

Director

Mr. Tawfiq Asghar Hussain

Director

Mr. Zafar Masud

Director
Mr. Imran Bakhsh Baloch
Director

15
Mr. Syed Muhammad Ali Zamin
EVP, Secretary Board Of Directors

2.2.2. AUDITOR:

Deloitte Yousaf Adil

Chartered Accountants

Grant Thornton Anjum Rahman

Chartered Accountants

2.2.3. LEGAL ADVISOR:

Mandviwalla & Zafar

Advocates & Legal Consultants

2.2.4. SENIOR MANAGEMENT:

The senior management of National Bank of Pakistan is consists of Group chiefs, who
report directly to the Directors of Bank. The whole functions of National Bank of
Pakistan are performed under these Groups. The National Bank of Pakistan has
following groups and divisions.
Corporate and investment Banking Group
Operations Group
Credit Management Group
Audit & Inspection Group
Compliance Group
HRM & Administration Group
Commercial & Retail Banking Group
Treasury Management Group
Special Assets Management Group
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 Employees benefit & Disbursements Group
Overseas & Coordination Group
Islamic Banking
Core Banking Application, PMO
Financial Control Division
Information Technology Group
The following is the list of Senior management of the National Bank of
Pakistan at present.

Arif Usmani
President & Chief Executive Officer
Sultana Naheed
SEVP & Group Chief, Commercial Retail Banking Group
Aamir Sattar
SEVP & Group Chief, Audit & Inspection Group
Muhammad Faraz Haider
SEVP & Group Chief, Compliance Group
Syed Jamal Baquar
SEVP & Group Chief, Corporate & Investment Banking Group (CIBG)
Faisal Ahmed
SEVP & Group Chief, Strategy and Business Analytics Group
Rehmat Ali Hasnie
SEVP & Group Chief, Inclusive Development Group (IDG)
Abdul Wahid Sethi
SEVP & CFO, Financial Control Group
Fouad Farrukh
SEVP & Group Chief, Aitemad Islamic Banking Group
Usman Shahid
SEVP & Group Chief, Credit Management Group
Asma Shaikh
SEVP & Group Chief, Human Resources Management Group

17
 Tariq Jamali
SEVP
Saleem Ahmed
EVP & Group Head, Risk Management Group
Shaukat Mahmood,
EVP & Group Head, Service Quality Group
Tariq Zafar Iqbal
EVP & Group Head, Operations Group
Karim Akram Khan
EVP & Group Head, Logistic Support Group.
Saad Ur Rahman Khan
SEVP & Group Chief, International, Financial Institutions & Remittances
Group
Muhammad Ismail Usuf
EVP & Group Head, Treasury & Capital Markets Group
Sardar Azmat Babar Chohan
EVP & Group Head (Acting), Assets Recovery Group
Aamir Zareef Khan
EVP & Divisional Head, Legal Division
S.M. Ali Zamin
Secretary (Board)
Ansar Raza Goraha
EVP & Divisional Head, Learning & Management Development Division
Shahzad Ahmed Karimi
SVP & Principal Staff Officer (PSO) to the President.

Organizational and Head office Management in NBP Head Office, deals with all

field offices and the necessary problems separately through the help of each

specific group made for that purpose. Some of the Groups and Division are

18
discussed below.

1. OVERSEAS BANKING GROUP:

➢ Foreign Exchange and operation
➢ Administration and credit

Executive vice Presidents are managing this division.

2. FINANCE GROUP:

This group further segmented into different wings and a senior vice president
looks after every wings.

➢ Investment Resources wing

➢ Accounts, Planning and budgeting wing
➢ Government Debit Management wing
➢ Publicity and Public Relation wing
➢ Editor Board Quomi “Banker” wing
➢ Reconciliation wing

3. HUMAN RESOURCE AND ADMINISTRATION GROUP:

It consists of three following divisions:

a. Administration Division:

This division also divided into establishment wing, staff relation, central unit
fraud and forgery and regulation wing, personal wing and personal career
wing.
b. Information Technology Division:

The division consists of computer wing and audit, and procedure and

Administration wing.

c. Human Resource Development Division;

This division supervise all staff colleges, almost at all branches of NBP.

4. AUDIT AND INSPECTION GROUP:

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 There are two wings working under this groups which is given below:

➢ Regional audit wing

➢ Implementation wing

This group deals with audit and inspection of sub-ordinate offices.

5. SPECIAL ASSETS MANAGEMENT DIVISION:

There are two divisions which constitute this group

➢ Recovery and litigation division

➢ Customer services

6. CREDIT PROCESSING AND MONITORING DIVISION:

This division is distributed according to different areas:

➢ N.W.F.P and A.K. Sindh Baluchistan area wing

➢ Karachi wing
➢ Special credit cell and Punjab area wing
➢ Corporate credit division/ credit policy wing
➢ Agriculture finance wing

2.2.5 FIELD MANAGEMENT AND ORGANIZATION:

The field management is divided into 29 regional head quarters, which are headed by
regional chief executives. These regions are as under:

Regional offices:

➢ Karachi (south)
➢ Karachi (west)
➢ Hyderabad
➢ Larkana
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➢ Sukkur
➢ Quetta
➢ Gawadar
➢ Lahore(central)
➢ Lahore(East)
➢ Gujranwala
➢ Sialkot
➢ Fasalabad
➢ Jhang
➢ Sargodha
➢ Multan
➢ Bahawalpur
➢ Dera Ghazi khan
➢ Sahiwal
➢ Federal capital- Islamabad
➢ Rawalpindi
➢ Jehlum
➢ Gujrat
➢ Peshawar
➢ Mardan
➢ Dera Ismail khan
➢ Abbotabad
➢ Muzafarabad(A.K)

21
22
23
24
 Chapter#3
DEPARTMENTS OF THE
NATIONAL BANK OF PAKISTAN

25
DEPARTMENTS OF THE NBP
Banking procedures are divided between various departments. Different
departments do their jobs in occurrence with the bank policies. In National Bank
of Pakistan each branch is divided into various departments depending on their
size and volume of business. Head of department manages each department &
officials of the branch follow procedures.
This CHAPTER is all about the basic banking operations, financing, and
remittances. NBP Shadadpur Branch has following main departments for
functioning on which whole functions of bank depend and all services are
rendered through these departments.

3.1) FINANCING DEPARTMENT:

Financing /Advances department receives the application from intending

borrowers and after security and processing the same application to the higher
authorities .The following advances are made at branch level.
➢ Agriculture advance to the farmers.
➢ Short term advances to the business men.
➢ Long term advances for setting up industries and structural updating
➢ Medium term advances for working capital
➢ Seasonal advances to cotton ginners, rice and sugar mills

3.2) REMITTANCE DEPARTMENT:

Bank promotes the facility of remitting the funds within the country and outside
country within certain limits. Usually money remitted through demand draft
(DD), mail transfer, telegraph transfer and SWIFT.

26
3.3) ACCOUNTS DEPARTMENT:

Account department maintains the record of fixed deposits receipts of the

depositors. Account department also keep record of income and expenses
incurred at branch level and maintain profit and loss account of the branch.
Accounts department prepares the weekly and daily statements of the affairs
of the branch.

3.4) CLEARING HOUSE DEPARTMENT:

As part of their daily business activity, banks receive cheques and other financial
instruments from their customers drawn on other banks, to be collected and
credited to their accounts. Similarly, banks receive cheques/instruments from
other banks, deposited by customers of the banks drawn on the customers of the
drawee banks. Therefore, the banks act as Collecting Banks when they send
cheques/instruments for collection and as paying Banks, when they receive
cheques/instruments for collection from other banks.
The Clearing System enables cheques to be paid or cleared centrally and
settlement made for receivables and payables between the banks. The SBP co-
ordinates clearing activity through its offices, called the Clearing Houses, set up
in big cities and towns.
Where SBP does not maintain its own office, some other bank, usually National
Bank of Pakistan (NBP) performs this function. But the clearing house facility is
available only for cheques/instruments drawn on banks situated within the same
city/clearing house area.

3.5) FOREIGN REMITTANCE DEPARTMENT:

27
 The bank provides the foreign remittances facilities to the student studying
abroad. Bank also provides foreign exchange in the shape of traveler’s cheques
to the intending visitors.

3.6) CASH DEPARTMENT:

Cash department is the back bone of the branch .Cash department receive the
cash from depositors and other branches of the area. It performs function as the
depository of cash for other branches. It feeds other branches with required
cash whenever the branches of area make Intend for cash. This department
is the showcase of the bank and conveys the first impressions about the bank’s
commitment to professionalism in its systems and procedures and to courteous
and efficient customer service.

3.7) DEPOSIT DEPARTMENT:

The primary function of National Bank of Pakistan is to accept and receive

surplus money from the people, which they willingly deposit with the Bank.
Like all other Banks, National Bank of Pakistan also take incitation to attract as
much depositor’s as it can. The deposit department accepts/collects deposit from
accountholders.
The National Bank of Pakistan offer different deposit schemes to its customers,
which includes the following:
Current Deposits
PLS Saving Deposits
Fixed Deposit Account ( Time Deposits)
Foreign Currency Account
NBP Premium Aamdani
Foreign Currency Account
National Income Daily Account (NIDA)

28
3.8) COMPUTER DEPARTMENT:

This department is playing a very important role in making the banking

procedures faster and helping the bank for providing better services to its
customers. The National Bank of Pakistan has three types of branches in all
over Pakistan, these included;

• Online branches: The branches, which are directly, link with central
computer AS-400, through wide area networking through fiber optics.
• Batch Branches: The branches where all transactions are carried out with the
computer base system but these branches are not connected to the central
computer with wide area net working.
• Manual Branches: The branches where all transactions are carried out
manually and records are maintained on registers usually stored in big
wardrobes. Manual branches reports Regional head office regarding their daily
transactions.

3.9) PENSION DISBURSEMENT DEPARTMENT:

The National Bank of Pakistan was Pakistan’s leading institution which

performs the function of pension payments or disbursements to pensioners.
The pension disbursement department is responsible for making pension
payments to Government Pensioners. The person who wants to receive his/her
pension from National Bank of Pakistan can open an account with any branch
of National Bank of Pakistan. The bank performs this function through
Demand Draft Purchase or simply called DD Purchase. This department
performs following functions:
• Making Pension Payments
• Opening of Account of Pensioner
• Entry of amount paid to pensioner in Government Pensioners Register
• Verifications of Signatures of Pensioners
• Making Demand Draft Purchase Register

29
3.10) PRODUCT AND SERVICE OF NBP

This includes the products and services of NBP that are offered by NBP to
provide satisfaction to the customers. Following are the main consumer banking
products and services of NBP.

A) ACCOUNTS TYPES OF NBP:

The National Bank of Pakistan offers to their clients a variety of Deposit

Schemes with Personalized Services at competitive rates of interest .Any
Pakistani citizens can open his /her account for any deposit scheme at any of its
branches strategically located throughout Pakistan. The Bank with its huge
network of 1504 branches garner saving from both rich and the poor in urban as
well as rural Areas .Even a poor farmer in a remote village, with his meager annual
income feels secure keep his minuscule saving in National Bank of Pakistan
because National Bank of Pakistan has a long heritage of trust and professional
commitment.

1) CURRENT DEPOSITS:

These are payable to the customer whenever they are demanded .When a Banker
accepts a demand deposit ,he incurs the obligation of paying all cheques etc.
drawn against him to the extent to the balance in the account .Because of their
nature , these deposit are treated as current liabilities by the banks . Bankers in
Pakistan do not allow nay profit on these deposits, and customer are required to
maintain a minimum balance ,failing which incidental charges are deducted from
such accounts .This is because current Deposit may be withdrawn by the
depositors at any time , as such the bank is not entirely free to employ such
deposit . Current Accounts /Basic Banking accounts are opened on proper
introduction and submission of required document s along with initial deposit
prescribed from time to time. Basic Banking account are opened for individuals (
Single or joint ) only whereas current accounts are opened for individuals( single

30
 or joint ) Charitable institution , provident and other funds of benevolent nature
of local bodies , autonomous corporations ,companies ,associations , institutions,
firm etc. and in all other cases where the accounts are to opened under the order
of a competent court of law .No Profit is paid on the balance of current \basic
banking accounts. The bank is authorized to deduct service charges (incidental
Charges) on current accounts levied through its half yearly schedule of charges
,in case the average balance falls below the minimum balance as prescribed by
the bank. No Balance maintenance condition is applied on the basic banking
accounts.

2) PLS SAVING ACCOUNT:

In Pakistan a saving Deposits Account can be opened with a very small amount
of money, and Saving Deposit Account can be opened with a very small amount
of money, and the deposit is issued a cheque book for withdraw. Profit is paid at
a flexible rate calculated on six monthly basis under the interest free Banking
System There is not restriction on the withdraw from the deposit accounts but the
amount of money withdraw id deleted from the amount to be taken for calculation
of product for assessment of profit to be paid to the amount holder. It discourages
unnecessary withdrawals from the deposits.

In order to popularize the scheme the SBP has allowed the savings schemes for
school and college students and industrial labour also. The purpose of these
accounts is to inculcate the habit of savings in the constituents. As such, the initial
deposits required for opening these accounts are very nominal NBP charges RS:
500 for opening of PLS Saving Deposit.

The silent features of profit and loss sharing and saving accounts of NBP are as
follows:

1. These accounts can be opened by individuals in their own single or joint

name. The PLS savings accounts can also be opened for provident fund
or other benevolent funds of companies, firms, organizations, NGO’s
and educational institutions.
2. PLS saving account can be opened with a minimum amount of RS.500/-
only.

31
 3. To share in the profit a minimum balance of RS.500/- must be
maintained in the account. The minimum balance on sixth and last of
month will qualify for the profits. The profits will be calculated on the
basis of monthly minimum balance for the periods of sixth month i.e.
from January to June and July to December.
4. The head office of the NBP determines the profit or loss on PLS saving
deposits and advices its branches the rate and time of distribution of
these profits.
5. There shall be no restrictions on maintaining the maximum balance in
PLS saving account.
6. On the first day of Ramzan each year the zakat at the rate of 2.5% will
be deducted from these deposits on the balance of that day. But if
depositors affix an affidavit of zakat deduction along with account
opening from or he is a non-muslim, no zakat will be deducted from his
account.

3) FIXED DEPOSIT ACCOUNT (TIMES DEPOSITS):

The deposit that Can be withdraw after a specified period of time are referred
to as fixed or term Deposits. The Period for which these deposits are kept by the
bank ordinary varies from three months to five years in accordance with the
agreement made between the customer and the banker .Profit / Return is paid to
the depositor on all fixed or time deposit , and the rate of profit /return varies with
the duration for which the amount is kept with the banker .By lending out or
investing these funds , the bank earns more than the profit /Return that it has to
pay on them to the depositors.

By giving an advance notice to the bank the deposit can be withdraw from the
bank before the expiry of the period .Fixed deposit accounts have higher rate of
interest as compare to other accounts.

32
 The rate of interest rises with the length of period and the amount of deposit.
The bank grants to the depositor a fix (FDR) which is not transferable to any other
person .The silent features of fixed Deposit account of NBP are as follow

1. The PLS term deposit are opened for individuals in their own single or
joint names, companies firms and other organizations.
2. The PLS term deposit receipt are issued for any amount .There is
minimum or maximum limit or deposits in a single account.
3. PLS term depositor may be allowed some facilities against the security
of these receipt credits, after making “lien” on the relevant receipt and
subject to recovery of service charges.
4. Under term deposit scheme the depositors not cease to earn the profit
immediately, after the respective maturity date.

B) SERVICES OF NBP

1) DEMAND DRAFT

If you are looking for a safe, speedy and reliable way to transfer money, you
can now purchase NBP Demand Draft at very reasonable rates. Any person
whether an account holder of the bank or not, can purchase Demand Draft from a
bank branch.

2) LETTER OF CREDIT

Letter of credit are very useful instruments in facilitating commercial relations

between businessmen at various places .Letter of credit state the limit of credit
and the time during which it is held at the disposal of the grantee, but they are
neither negotiable nor transferable letter of credit may be revocable . There are
many kinds of letter of credit such as revolving credit, Back to Back credit Clause

33
 credited NBP is committed to offering its business tar customers the widest range
of options in the area of money transfer. If you are a commercial enterprise then
our Letter of credit service is just what you are looking for. With competitive
rates, security and ease of transaction, NBP letters of credit are the best way to do
your business transaction.

3) TRAVELERS CHEQUE

They are generally issued for the convenience of person travelling abroad but
some Pakistani banks issues them in Pakistan currency also for use within the
country as well as. Before issuing the bankers receive an equal to the face value
of the cheques, and also charge a small commission. The traveler’s cheques are
for fixed amount and are treated as order cheques.
Payable only to the purchaser whose specimen signature appear on each
travelers cheque itself. Foreign currency travelers cheques are issued and
encashed in accordance with the provisions of the exchange Control, Regulation
Act, 1947. While making payment, the paying banker must insists that the holder
signs in his presence .
The National Bank of Pakistan provides their services for travelers cheque at
very reasonable and competitive rates. It has following features

Negotiability Pak Rupees Travelers cheque are a Negotiable

Instrument
Validity There is no restrictions on the period of validity
Availability At 700 branches of NBP all over the country
Encashment At all 400 branches of NBP
Limitation NO limit on purchase
Safety NBP Traveler cheque are the safest way to carry our
money

34
4) PAY ORDER

NBP provides another reason to transfer your money using our facilities. Our
pay orders are a secure and easy way to move your money from one place to
another. And as usual , Our charges for this service are extremely competitive.
The charges of NBP are very low all over the Pakistan .It charges RS 50/ -for
NBP account holders on issuing one payment order , and charges RS 100/ - NBP
non –account holders on issuing one payment order . It charges RS 25/- for
students on payment of fees of educational institutions. If someone want a
duplicate of payment order .they charges RS 100 for NBP account holder and RS
150 / - for non-account holder.

5) FOREIGN REMITTANCE

To facilitate its customer in the area of home remittance, National Bank of

Pakistan has taken a number of measures to:
➢ Increase home remittance through the banking system
➢ Meet SBP directives / instruction for timely and prompt delivery of
remittance to the beneficiaries

New features

The existing system of home remittance has been revised /significantly

improved and well- trained field functionaries are posted to provide efficient and
reliable home remittance services to nonresidents Pakistan at 15 overseas
branches of the bank besides Pakistan International Bank (UK) ltd .,and Bank Al
–Jazira, Saudi Arabia .
➢ Zero tariff : NBP is providing home remittance services without any
charges
➢ Strict monitoring of the system is done to ensure the highest possible
security.
Short Term Investment
NBP now offers excellent rates of profit on all its short term investment

35
 accounts.
Whether you are looking to invest for 3 months or 1 year. NBP `s rates of profit
are extremely attractive , along with the security and services only NBP can
provide.

National Income Daily Accounts (NIDA)

The scheme was launched in December 1995 to attract corporate customer .It is
a current account and is part of the profit and loss system of accounts in operation
throughout the country.

Mode of Calculation
Average Balance during a calendar Month.

3.10) PRODUCTS OF NBP

Some of the listed products information of National Bank of Pakistan is
as under:
1. NBP Premium Aamdani
2. NBP Advance Salary
3. NBP Cash Card
4. NBP Investor Advantage
5. NBP Cash and Gold
6. NBP Digital (Mobile Application)

1. NBP PREMIUM AAMDANI

NBP Premium Aamdaniis retail product of bank. The amount
of investment required for this account of investment required for this account
is RS 20,000 /- to RS 10,000,000 .The investment period is 5 years. Zakat and
withholding tax will be deducted as per rules . In NBP premium aamdani , the
account holders have benefit of free demand draft ,pay order, free cheque book
and NBP cash card (ATM + Debit)
The financing facility is available up to 90 % of the deposit
value. Profit paid every period as follow:

36
 Period profit Rates
1st year 12.00% p.a.
2nd 12.10% p.a.
3rd 12.15% p.a.
4th 12.25% p.a.
5th 12.35% p.a.

2. NBP ADVANCE SALARY

The NBP Advance Salary has been the flag –ship product for NBP. NBP
Advance Salary, the leading personal loan product of the country is maintaining
its inimitability ever since it was launched. This was only possible due to its swift
growth and remarkable loan disbursement of over 118 billon. You can avail up to
20 net take home salaries with easy repayment installments. Its hassle free
acquisition with no prior formalities and easy availability in a short term time is
attributed as the most distinguished features of the product. The Product is offered
countrywide.

3. NBP CASH CARD

NBP cash card is a 24- hour direct access ATM /Debit card to your bank
account , which lets you pay directly from your account as alternative payment
method to cash .The transaction is authorized and processed by entering PIN.
The NBP cash card holder are able to transact at any of the 4000 + Merchants
where Orix logo is displayed and can withdraw cash from NBP ,I – Link and M-
NET ATM `s across the country .The following are the main features of this
product:

• You won`t need to carry a lot of cash with you every time you go out.
• Secure and safe transaction
• Account Information on tips (like: Mini Statement , Balance Inquiry ,Utility
Bill Payment etc.)
37
 • Enable To Withdraw ash From I-Links ATM`s /MNET ATMs
• Enable to make purchase from Around 4000 (Merchants) Countrywide
including 2500+POS in Karachi
• No Card Issuance Fee for First 12 Months.

4. NBP INVESTOR ADVANTAGE

• Comfortable and secure environment for trading

• NBP financing at very easy terms requiring minimum documentation
• Minimum turnaround time
• No security requirement from customer except for the customer `s equity
• Customer `s equity freely available for investment
• Equity acceptable in cash or approved share

Eligibility

• Pakistani National with void computerized national ID card

• Over 21 years of age
• An account with NBP designated Branch
• Equity in the form of cash or NBP approved shares
• No default with any financial institution
• Obtain facility application form the NBP Marginal Desk at designated
Branches.
• Fill in the application form and submit it to branch
• On application approval, deposit equity as cash in the margin financing
account at the bank Alternatively NBP approved shares can be deposited
in the NBP CDC Account (CDC A/C No .2345)
• Start trading through comfortable and friendly trading centers
establishment for you (in collaboration with Taurus Security limited a
subsidiary of NBP )
• Trading limit available for the amount of equity + bank financing

38
5. NBP CASH AND GOLD

Get Extra Benefit from your Gold:

With NBP`s Cash and Gold, you meet your need for ready cash against
your idle gold jewellery.

• Rate of mark –up 13 % p. a

• Facility of Rs 7,000 against each 10 gms of net contents of gold
• Repayment after one year
• Roll Over Facility
• Only gold ornaments acceptable
• Weight and quality of gold to be determined by NBP `s appointed
schroffs
• No penalty for early repayment

6. NBP DIGITAL
NBP has launched Mobile Banking Application (NBP Digital) to bring
convenience for its conventional banking customers. By using NBP Mobile
Banking Application our customers may utilize banking services anywhere
any time.

So get yourself registered by downloading the Mobile App from:

Google Play Store

App Store

For using NBP Digital services you just need to have:

Account Number

ATM Card & PIN

Registered Mobile Number

CNIC Number

39
 Chapter#4
SWOT ANALYSIS

40
SWOT ANALYSIS
This chapter includes the SWOT analysis which is one of the most important in
formulating strategy using the organization mission as a context manager assess
internal strengths distinctive competencies and weakness, external opportunities,
threats and ratio analysis.

SWOT Analysis is an acronym that stands for strengths, weakness, opportunities and
threats. SWOT analysis is careful evaluation of an organization’s internal strengths
and weaknesses as well as its environment opportunities and threats.

“SWOT analysis is a situational which includes strengths, weaknesses, opportunities

and threats that affect organizational performance.”
“The overall evaluation of a company strengths, weaknesses, opportunities and threats
is called SWOT analysis”.

In SWOT analysis the best strategies accomplish an organization’s mission by:

1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.
3. Avoiding or correcting its weakness.

4.1 STRENGTHS
A) WESTERN UNION FACILITY:

National Bank of Pakistan is only one bank which has the facility of
western union. In this particular scheme money is transfer in Pakistan from
abroad. This is the fastest way to money transfer. You can receive the money from
bank to see the name and password of particular client

41
 B) ATM FINDER:

There is also strength of NBP that they are found the ATM. They now provide
this facility to the customers.

C) GOVERNMENT-OWN BANK:

In commercial banking system NBP is only the government bank. They

make their policies according to the government’s rules and regulations. It enjoys
its position in the market of banking system in Pakistan. Government of Pakistan
also facilitating the National Bank of Pakistan.

D) SATISFIED CUSTOMERS:

Because of government’s bank, it is enjoying the customer’s satisfaction.

Customers feel secure with regard to their money in NBP.

E) ONLINE BANKING:

There is also strength of NBP that 130 branches are online .It helps the
speedy services giving to the customers. There is also help in checking the
balances and daily transactions just at one key press.

F) EMPLOYEES BENEFIT:

The employers at NBP are offered reasonable monetary benefit. Normally

two bonuses are given Eid-Ul-Fitar and Eid-Ul-Azha. This serves as an additional
benefit and competency for the bank and a source of motivation for the
employees.

G) WIDE NETWORK:

The bank has another competency i-e, it has broad-basses network of

branches throughout the country also more than one branch in high productive
cities. The customers are provided services at their nearest possible place to
confirm customer satisfied.

42
 H) EMPLOYEES LOYALTY WITH ORGANIZATION:

Employees are very much loyal to NBP. Employee’s turnover is very low in NBP.
Very few employees are leaving the jobs in NBP. So it is very big strength that
your employees are loyal to your organization.

I) HEALTHY ENVIORNMENT:

The working condition in the NBP branch here is very conductive and
favorable for better output. The informal environment affects the performance of
the employees in a positive way.

J) STRICTLY FOLLOWED RULES AND REGULATIONS:

The employees at NBP are strict followers of rule and regulation imposed
by bank .The disciplined environment at NBP bolsters its image and also enhances
the overall output of the organization.

4.2 WEAKNESSES

A) LACK OF COMMUNICATION:

During the internship in NBP I found the problem lack of communication

between the employees and management. They have not very much
understanding with each other and not share the work of each other.

B) UNCONVINCING PUNISHMENTS:
Punishment threat is not very strong for employees. Some employees are
not very professional in their field but top management not takes the action
against such employees.
C) UNEFFECTIVE PUBLIC DEALING:

43
 Public respect is not very effective in NBP. Employees are not taking care
of the customers, especially in pension and bills department.

D) SHOTAGE OF PERSONNEL:

There is also weak point for NBP that staff is very short and more staff is
required to meet the needs of the branch work. They help from internees. For one
thing, the profits to the national banks from the bank note privilege are so small
and the operations of issue, withdrawal and redemption so troublesome, that many
national banks make no use of their privilege in this respect or only a partial use.

Again, the volume of circulating notes is made dependent upon the price of
bonds, that is, upon the speculative and investment market, which may or may not
coincide with the needs of the commercial money market. If the financial market
is strong and bonds rise to premium standard, the profit from the circulation
privilege declines; and if the commercial money rate is also high at such times,
the profit is still lower. There would seem therefore, to be sort of perverse
elasticity to the circulation. It is difficult to show this statistically because the
number of banks and the capitalization of banks are varying at the same time that
the prices of the bonds and the amount of bonds deposited to secure circulation
are varying.

A further disadvantage is the fact that volume of National bank notes is

made dependent upon the government debt. The expansion of the debt may cause
undesirable expansions of the circulation, though the government has lately
prevented this by denying new bond issues the circulation privilege. On the other
hand, if the government pays its debt, the volume of bank notes must contract if,
as between 1880 and 1899, The Treasury goes on the open market and buys bonds
,the price is driven to a point of high premium ,eliminating the profits on the
circulation. Between the dates mentioned the volume of bank notes declined.

44
4.3 OPPORTUNITIES
The world today has become a global village because of advancement in
the technologies, especially in communication sector. More emphasis is now
given to avail the modern technologies to better the performances. NBP can utilize
the electronic banking opportunity to ensure online banking 24 hours a day. This
would give a competitive edge over others.

MICRO FINANCING:

Because of the need for micro financing in the market, there are lot of
opportunities in this regard. Other banks have already initiated, now the time has
arrived when the NBP must realize it and take on step to cater an ongoing demand.

4.4 THREATS:

A) COMPETITVE ENVIORNMENT:

The bank is facing threats with the emergence of new competitors

especially in terms of foreign banks. These foreign banks are equipped with heavy
financial power with excellent and innovative ways of promoting and performing
their services. The bank has to take initiative in this regard or will find itself far
back in competition.

B) POLITICAL INFLUENCE:

The ongoing shift in power in political arena in the country effects the
performance of the bank has to forward loans to politically powerful persons
which create a sense of insecurity and demoralization in the customer as well as
employees.

C) DOWNSIZING:

The bank is currently acting upon the policy of downsizing which threaten
the environment of the bank employees feel insecurity in doing their jobs and
work, hence affecting the overall performance of employees negatively.
45
 E) COMPLAINTS OF CUSTOMER:

There exists no regular and specific system of the removal of customer

complaints. Now days a need for total customer satisfaction is emerging and in
their demanding consequences customer’s complaints are ignored.

4.5 RATIO ANALYSIS:

Ratio Analysis enables the business owner/manager to spot trends in a
business and to compare its performance and condition with the average
performance of similar businesses in the same industry. To do this compare your
ratios with the average of business similar to yours and compare your own ratios
for several successive years, watching especially for any unfavorable trends that
may be starting. Ratio analysis may provide the all-important early warning
indications that allow you to solve your business problems before your business
is destroyed by them. Ratio means “one number expressed in term of another a
ratio is statistical yardstick by mean of which relationship between two or various
figures can be compared or measured. Here we are going to explain the ratio
analysis of NBP (bank) which is little bit different from other organizations.

46
 CHAPTER#5
CONCLUSIONS AND
RECOMMENDATIONS

47
5.1 MY EXPERIENCE DURING INTERNSHIP
During this six week of internship at such prestigious and globally known
organization, National Bank of Pakistan, I learnt tremendous things about
the working conditions of an international organization, from starting the daily
operations, meeting customer requirements, controlling the unexpected
overwhelmed work load, to opening of bank accounts, dealing with
remittances, maintaining work ethics, and reporting to regional offices etc.
More than that it gave me a practical approach of how the theories of
businesses are adopted and applied during the decision making, planning, and
coordinating activities. This internship was a practical example of the systems,
techniques, methods I have learnt in all these years through the books. The
various operations and their functioning which I learnt during my internship
stay at NBP are discussed below in detail.

1. ACCOUNTING:
The function of NBP accounting records maintenance is satisfactory although
its not an online branch. As my major is in accounting it was thrilling for me
to encounter the accounting techniques practically used for specific purpose. I
get to experience how accounts are opened, how we maintain daily cash
receipts and cash payments, how balances are to be maintained, how cheques,
pay orders, pension slips, letters of credit transactions are passed through bank
journal (computer). Thus, the recording of every little detail regard to cash and
credit transaction, and classification of data accordingly.

2. AUDITING:
The bank was conducting an internal audit during my internship. It was a good
enlightenment to be a practical part of the auditing process. In auditing we
check account opening forms, cheques, cash books (transfer scroll, cash
scroll), RBVs (Responding Branch Vouchers), letter of credits, pay orders etc.
according to the Standard Procedure Manual.

3. ACCOUNT OPENING:
Account opening is another interesting chapter of NBP. NBP usually opens the
major three types of accounts in Shadadhpur Branch i.e. CURRENT

48
 ACCOUNT, FIXED DEPOSIT ACCOUNT, and PLS SAVING ACCOUNT.
Their customers are based on every age group. These bank accounts can be
opened by Individuals, Private/public limited companies, Federal Provincial
Govt. Institutions, Trusts, Sole Proprietors, Partnerships Businesses.

4. DEPOSITS:
NBP receive Deposits on daily basis. As it is a government-owned bank and
every government employee salary is paid through the NBP accounts, it
receive a huge deposit from the government at the near ending of the month
and the workload and cash withdraw at the starting of month is hectic. It
taught me how organizations maintain and handle such huge amount of
deposits and withdraw of money at a specific time period.

5. ADVANCES:
Loans help a country nourish and flourish. The advances made to business
enterprises for investments plays a key role in a country’s economic
development. NBP is playing a crucial role in this regard. It offers various
schemes of large, small, medium size of loans depends on the purpose and
requirements of the borrower. Individuals, business enterprises, household can
avail these schemes according to their need. NBP also advance money against
mortgage. Interest rate vary according to the scheme.

6. PENSIONS:
Another contributing function of the NBP is, its serve the nation by providing
pensions at time. Most government department retired employees pensions are
made through the NBP. In some branches of NBP there also exist EOBI
(Employees Old age benefits Institution) for the old people ease.

7. HUMAN RESOURCE MANAGEMENT:

I learnt a lot from this specific department of the organization. It was amazing
to see how they handle their immense operations of the organization with
limited personnel, how they have the well established system of performance
appraisal, rewards and punishments. Managing the workforce of an
organization is vital to its healthy functioning. NBP gave me a practical
picture of it

49
CONCLUSIONS AND RECOMMENDATIONS
This covers the conclusion and recommendation. Here I am giving some
suggestions, which in my view can add some input for efficiency and better
Performance of NBP as an organization.

5.2 CONCLUSIONS:

At the completion of the business internship the internee draws the following
conclusion:

1. It appears the Bank has a lengthy process of sanctioning advance.

2. It has an effective budgeting system at place.
3. It has a comprehensive framework of written policies and procedures for
all major areas of operations.
4. In contract to other banks populating the FSI sector, NBP is mandated to
uphold public interest.
5. It seems that the promotions are not given in the due time.
6. It looks the staff member are not properly trained.
7. It appears that large amounts paid on administration cost.
8. It shows that there is lack of recovery system.
9. The National Bank of Pakistan provides sustainable financing for growth
of industries of critical national importance such as energy, education,
healthcare, transport, shipping, Research & development.
10. It seems that there is no networking.
11. It might not be possible for every borrower to repay the money in due time.
12. It seems that there shall be a great the rush days for the customers as well
as for the staff members if the number of customer are limited or very few.

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5.3 RECOMMENDATIONS:

On the basis of conclusion internee draws the following suggestions:

1. It is suggested that the process should be short in order to save time, money,
energy and stationary etc.
2. It is advised that promotion be given in due time because of interest to work
satisfactory.
3. It is proposed that proper training be provided to the staff members that
will ultimately increase the performance of Bank over all.
4. It is consulted that bank should reduce its large expenses in order to
increase the value of Bank.
5. It is suggested that reasonable steps should be taken to recover all absolute
advances.
6. The National bank of Pakistan should be fully prepared in its management
of financial crises and its business continuity planning.
7. The bank should provide support to the Micro, Small and Medium
enterprises thereby reducing unemployment and helping to create a more
equitable distribution of wealth.
8. As for as Islamic Banking environment is concerned the management and
employees of NBP should work together for basic research for discovering
their own laws, developing theories or concepts for the better direction of
their own business environment according to Quran & Sunnah.
9. The NBP should introduce the use of computers in order to confront with
the hectic business activities. It will also help to reduce the extra load of
manual work.

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REFERENCS

❖ www.nbp.com.pk (NBP official website) “main source”.

❖ Annual report of NBP.
❖ Economy reviews of Banks and their activities.
❖ Brochures, National Bank of Pakistan.
❖ Manuals, National Bank of Pakistan.
❖ My own learning which I have learned in internship time period.

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