CHAPTER 1

INTRODUCTION

1.1. AN OVERVIEW OF NATIONAL BANK OF PAKISTAN:

The National Bank of Pakistan came into

existence on 20th November 1949 under the

National Bank of Pakistan Ordinance 1949. It is a

semi public bank and function like other

commercial bank

Figure 1.1: NBP Head office

The National bank was nationalized, long with other banks in January 1974. The Bank of

Bahawalpur was also merged into this bank. National Bank of Pakistan plays the role of State

Bank of Pakistan in case of place where no branch of the State Bank in the existence. The

bank provides all types of banking services to government and private sectors, the bank also

handle treasury transactions for the government of Pakistan as agent to the State Bank of

Pakistan.

National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set

higher standards of achievements. It is the major business partner for the Government of

Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive

nd balanced lending policies, technologically oriented products and offered through its

locally, internationally and representative offices

1.2. OBJECTIVES OF NATIONAL BANK OF PAKISTAN:

1
  Growth through creation of sustainable relationships with customers.

 Prudence to guide business conduct.

 A national presence with a history of contribution to communities.

1.2.1. NBP AIM TO BE PEOPLE WHO:

 Care about relationships.

 Lead through the strength of our commitment and willingness to excel.

 Practice integrity, honesty and hard work. We believe that these are measures of true

1.2.2. NBP HAVE CONFIDENCE THAT TOMORROW WE WILL BE:

 Leaders in our industry.

 An organization maintaining the trust of stakeholders.

 An innovative, creative and dynamic institution responding to the changing needs of

the internal and external environment

1.3. MISSION AND VISION:

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Table 1.3: Mission and Vision (NBP)

VISION OF NBP MISSION OF NBP

To be recognized as a leader and a NBP will aspire to the values that make

brand synonymous with trust, highest NBP truly the Nation’s bank, by

standards of service quality, institutionalizing a merit and performance

international best practices and social culture, creating a distinctive brand

responsibility. identity by providing the highest standard

of services, adopting the best

international management practices.

1.4. CORE VALUES:

 Highest standards of Integrity

 Institutionalizing a merit and performance culture.

 Excellence in service

 Advancement of skills for tomorrow’s challenges.

 Awareness of social and community responsibility

 Value creation for all stakeholders

1.5. PURPOSE OF THE STUDY:

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Before going to start any project or thesis or research it is very important to know purposes or

define the objectives of the project because the objectives of the project are pillars of the

research. The objectives of the research are:

 To fulfill the partial requirement of the bachelor’s degree.

 The Research Monograph is an intensive study of the organization and to seek job

opportunity through this training.

 To get practical knowledge about the various departments of bank.

 To study the workings of different departments of the bank.

 To study the administrative and personnel policies of the management of bank.

 To see the facilities provided to customers.

1.6. RESEARCH METHODOLOGY:

While concludes the research study of National Bank of Pakistan

1.6.1. Primary Data:

“Primary data are those which are collected for the first time and are always given in the form

of raw materials and are original in character”.

 Observation

 Visiting various departments

 Lectures / Orientation

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1.6.2. Secondary Data:

“Secondary data are those which have already been collected by someone and have gone

through the statistical machines”.

 Academic Books

 Annual Reports of NBP/Government

 Prospectus of NBP/Government

 Magazines of NBP/Government

1.7. LIMITATIONS:-

In order to meet challenges the internee experienced the following problem that were faced

during the Research are as under:

 Due to secrecy of data the internee tried to collect possible information but all the

relevant information could not get.

 Time duration not sufficient.

 Staff members were unable to give extra time to internee due to their own heavy

engagements.

CHAPTER 2

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 ORGANIZAITON STRUCTURE

2.1. CONCEPT OF ORGANIZATION:

According to management by W.A. Razzaqi, the term “Organization is treated as a dynamic

process and managerial activity which is essential for planning the utilization of company’s

resources plant and equipment, material, money and people to accomplish the various

objectives. In other sense organization is supposed to be a structure, which has certain

principles and perform certain functions. In this sense we determine what activities the

enterprise needs and what degree of specialization it can offer.

Various organizations have defined organization in different several ways; a few of their

definitions have been selected which hopefully would contribute towards a clear

understanding of the subject.

Morris E. Hurley 1964 defines an organization in two different ways; firstly he believe that

whenever two or more persons are associated in an endeavor, administrative organization

comes into play as a tool for the efficient accomplishment of the tasks that these persons

jointly undertake. If each person in a group were to try to do everything by himself, the

possible collective action would be lost. Some understanding must be reached among the

individuals as to the rights and responsibilities of each. Secondly an organization is the

administrative process of determining what activities are necessary for the achievement of an

objective or plan of dividing and grouping the work into individuals’ job and of defining

established relationships among persons performing these tasks.

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2.2. CONCEPT OF MANAGEMENT:

According to management by W.A. Razzaqi, management is an activity, process, composed

of some basic functions for getting the objectives of any enterprise accomplished through the

efforts of its personal. Whenever and wherever objectives are to be achieved essential for

directing and unifying the group efforts towards a common purposed. Management is

required not only for business organizations but also for educational, religious, charitable,

social security, welfare health case and other non-business institutions, further the greater and

the most comprehensive of our social organization, viz. the government of all types need

management as much as other require, perhaps more than all other social organizations.

According to James Stone, 1982, “Management is the art of getting work done through the

people and is science of administration”.

2.3. ORGANIZATIONAL STRUCTURE OF NBP:

The scheme or by which the various divisions, departments, sections, operating units and

individual jobs of a bank co-ordinate and sub-ordinate, authority defined functions described

and responsibilities located for each officer and employee, to the end that banking business

may be properly controlled and made to operate smoothly. Its stockholders own a bank, but

this body is too large and unwisely activity to manage its affairs. Control of the police and

management of the bank is therefore vested in the board of directors, elected by the

stockholders for usually. This body is responsible to the stockholders for successful

management and to the government banking laws. The actual administration of the bank’s

operation, however, depends upon the officers who are appointed by the directors.

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The officers usually consist of a president who in small bank may be merely a figurehead,

who is primarily interested in another line of business.

One or more vice presidents, a cashier, who is usually equivalent to the general manager and

whose duties are never delegated.

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2.4. ORGANIZATIONAL CHART OF NBP:

(Branch Office)

O
I
N
G
E
R L
A
E
P
U
O
R
G
B
O
R
A
D P
S
I
F
O
E
I
H
C
S
F
T
C
E
R
I
D V
A
/
O
R
S
N
D
F
E
I
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P T
S

Fig 2.4: Organizational Chart of NBP

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2.5. COMPETITORS OF NBP:-

The competitors of the National Bank of Pakistan are as follows:

 Askari Bank

 Habib Bank Limited

 United Bank Limited

 Allied Bank limited

 Dubai Islamic Bank

 Meezan Bank Limited

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 CHAPTER 3

DEPARTMENET OF NATONAL BANK OF PAKISTAN

3.1. DEPARTMENTS:

The NBP is counted in good branches throughout the Pakistan and provides good facilities

and services to the old and new customers because all employees of the bank have faith to

that “The customer is a King” (a customer is not an interruption to our work he is purpose of

it).

The branch is doing a good business in banking industry and achieves all targets of the

organization, and in future provides more facilities and services to the customers

The NBP has the following departments:

 Deposit section

 Remittance Department

 Foreign exchange

 Finance/Advance Department

 Cash Department

 Government section

 Marketing Development department

All above mentioned departments are dependent on customers we must say that without

customer there is no business.

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3.1.1. Deposit Section:

The following types of ledgers are concerned with deposit department:

 Current Ledgers

 Profit and Loss Sharing Ledgers

 Fixed Deposit Register

 Voucher Register

Table 3.1.1: Categories Of deposit

TIME DEPOSIT DEMAND DEPOSIT

 These are payable on maturity  These are not payable of
 Receive profit with respect to maturity but on demand
time period  No profit is given on demand
 All TDRs, saving accounts and deposits
other profit bearing accounts are  They include current accounts
included. and call deposits etc.

3.1.2. 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,Inter branch transaction.

Now Western Union and NBP together transfer the remittances from any location in the

world. This has given advantage to the clients and money is transferred in minutes. The

transaction in this department is cleared in five minutes after data is matched.Due to good

performance of NBP the WESTERN UNION has given nine awards to NBP

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3.1.3. Foreign Exchange Department:

The functions of foreign exchange department are as under;

 Imports:

We sell our foreign exchanges to the other country in return to purchase the foreign goods.

Payments for imports are made through Letter of Credit (LC) by the importer. Letter of

Credit is an undertaking given by the importer bank to the exporter’s bank to make payments

on receipt of documents evidencing dispatch of goods from exporter’s country to importer’s

country.

 Exports:

We sell our goods at foreign lands and earn foreign exchanges. This whole process is called

Export. The bank provides facilities to exporters for export of the commodities.

 Foreign Remittance:

The bank provides the foreign remittance facilities to the student studying abroad. Bank also

provides foreign exchanges in the shape of traveler’s cheques to the intended visitors.

 Clearing House Department:

The function of clearing house department of the branch represents other branches of the

bank of State Bank of Pakistan for exchange of cheques drawn at bank or otherwise. It

subsequently passes on the transactions to other branches where from cheques have been

drawn and collected. However, it is worthy to mention that National Bank of Pakistan

conducts proceedings of clearing house where the SBP has no branch. Clearing house is

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usually conducted in big cities with the State Bank of Pakistan. There are two types of

clearing:

o Inward Clearing:-Cheques submitted by other banks through NIFT is called Inward

Clearing.

o Outward Clearing:- The cheques pertain to other banks deposited by the customers

at the branch sent for clearing through NIFT is called Outward Clearing.

3.1.4. Finance/ Advance Department:

Finance department receives the applications from intending borrowers and after scrutiny

and processing the same application to the higher authorities. The following advances are

made at branch level;

 Agriculture advances to farmers.

 Short term advances to business man.

 Long term advances for setting up industries and structural updating.

 Medium term advances for working capital.

 Seasonal term advances to cotton ginners, rice mills and sugar mills

3.1.5. Cash Department:

The most important section in the bank is Cash Department..

The following books are maintained in the cash department:-

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  Receiving Cashier Books

 Paying Cashier Book

 Scroll Books

 Cash Balance Book

3.1.6. Government Section:

Government sections means collection of the following

 Income taxs

 Property tax

 Sales tax

 Traffic challans

3.1.7. Marketing Development department:

Marketing department is established in important and corporate branch of the bank. This

department is working efficiently in the branch,

The main fuctions of the marketing department are as under.

 To introduce a valued clients/depositors of the bank branch.

 To bring a valuable business for the branch.

 To provide the financial facilities for the customers.

 Marketing department plays very vital role in increasing the business and

depositebasse the branch.

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  The development of branch depends upon effective marketing system.

 Marketing department sale image of institution in the public.

3.2. TYPES OF ACCOUNTS:-

Fig 3.2: Types of Accounts

3.2.1. Current Account:

Here are some features of the current account offered at NBP

 This account can be opened in foreign currencies also.

 Minimum amount for opening this account is Rs.500

 Any person can open the account with the bank

 According to inter banks agreement interest is not paid on current account.

 Bank act as custodian of money

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  Over draft facility is provided to the customers

 Customer can withdraw money through cheque supplied by bank

 No limitation to the number of withdrawal

 No zakat is deducted on current account.

3.2.2. Profit and Loss Sharing Account:

This account helps the customer to earn a handsome amount on their saving. Any one or

more individuals or partners can open a PLS saving account with the Bank.

 Profit & Loss Sharing Saving Bank Account.

 Minimum account opening requirements of Rs.500 only.

 No restriction on number of withdrawals and number of deposits.

 Profit on PLS saving account is calculated on minimum monthly balance basis.

 Zakat at the rate 2.50% is deducted from the PLS Saving Accounts.

 Profit on PLS Saving Account is calculated on minimum monthly basis and is paid

half yearly basis announced by the Head Office after June 30 and December 31.

3.2.3. Asaan Account:

 No condition for minimum balance

 Facility of wide network of NBP branches and ATMs across the country.

 Minimum documentation.

 No charges for opening and closing the account.

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3.2.4. Foreign Currency Account:

These are the accounts in US $, Pound, Euro, yen etc. of different account holders and

either saving or current accounts. The transactions in these accounts are translated into

Pak. Rupees at the exchange rate prevailing on the date of transaction.

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 CHAPTER 4

SCHEMES OF NATIONAL BANK OF PAKISTAN

4.1. DIFFERENT PRODUCTS OFFERED BY NBP:

 NBP Premium Amdani

 Premium Saver

 Advance Salary

 Saibaan

 Mera Pakistan meraghar

 Cash And Go

4.1.1. NBP Premium Aamdani:

NBP premium Aamdani is the retail product of national bank. The amount of investment

required for this account is Rs. 20,000 to Rs, 10,000,000. The investment period is 5 year.

Zakat and withholding tax will be deducted as per rules. In NBP premium aamdani the

account holders have the 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.

4.1.2. NBP Premium Saver:

NBP premium saver is a retail product of NBP. It earns up to 8.50% p.a. The minimum

saving balance is Rs. 20,001 and a max balance of Rs. 1 million is required to opening a

19
premium saver account. Two debits withdrawal allowed in a monthly and paid on half yearly

basis.

4.1.3. NBP Advanced Salary:

NBP Advance Salary is for NBP Account Holders who are permanent employees of Federal /

Provincial / Semi Government & Autonomous Bodies receiving salaries through NBP. You

can avail up to 20 net take home salary can be availed, which should not exceed the

maximum limit of Rs.3,000,000/-. Maximum tenure of the NBP Advance Salary Finance is 5

years (60 months). Maximum age of the borrower at the time of maturity of the finance

should not exceed 59 years and six months.

4.1.4. NBP Saibaan:

NBP Saibaan is the retail product of NBP. It has different product items which are home

purchase, home construction, home renovation and purchase of land plus construction. If

anyone has a Home Finance Facility outstanding with other bank, he can avail it transferred

to NBP through a hassle-free process.

 Products Offered Under NBP Saibaan

o Home Purchase (House or Apartment)

Financing Amount Up to 35 Million

Financing Period 3 to 20 Years

Debt to Equity 70:30 (Maximum)

Debt Burden 45% (Maximum)

o Home Construction

Financing Amount Up to 35 Million

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 Financing Period 3 to 20 Years

Debt to Equity 70:30 (Maximum)

Debt Burden 45% (Maximum)

o Land Purchase Plus Construction

Financing Amount Up to 35 Million

Financing Period 3 to 20 Years

Debt to Equity 70:30 (Maximum)

Debt Burden 45% (Maximum)

4.1.5. NBP Cash and Gold:

With NBP Cash and gold, the customer meets their need for ready cash against their idol gold

jewelry. The rate of markup up to 13% p.a. NBP cash and gold provide facility of Rs. 60,000

per 10 gram of net content of gold. There is no maximum limit of cash and repayment after

one year. Weight and quality of gold to be determined by NBP’s appointed gold smith and

there is penalty for each repayment.

4.1.6. Mera Pakistan Mera Ghar:

It is a low-cost housing finance scheme for the nation. One individual can avail the

subsidized house finance facility under this scheme only once. Only first-time home

owner can avail this scheme. The candidate must be a NIC holder. You can purchase

constructed residential property (Apartment/flat/ house). Age of applicant 25-60 years.

You can avail up to Rs. 3.5 million to 6/0 million loan. Mark up rate is 5% for first 5

year and 7% for next 5 year. No early payment charges.

CHAPTER 5

21
 SERVICES OF NATIONAL BANK OF PAKISTAN

5.1. INTRODUCTION

The National Bank is a complete service based bank in Pakistan forward looking

professionally managed bank providing comprehensive packages of service to its corporate,

commercial and individual clients. Including mentioned below:-

5.2. VARIOUS ATTRACTIVE SERVICE OF NBP

Services are in use to provide benefits to the customers and to satisfy the customer needs and

demands are as follows.

 Demand Draft

 Letters of Credit

 Pay order

 Foreign Remittances

 Agricultural Finance

 Commercial Finance

 International Banking

5.2.1. Demand Draft:

If can now purchase NBP’s Demand Drafts at very reasonable rates. Any person whether an

account holder of the bank or not, can purchase a Demand Draft from a bank branch.

5.2.2. Letters of Credit:

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NBP is committed to offering its business customers the widest range of options in the area of

money transfer.  If you are a commercial enterprise then 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 transactions.

5.2.3. Pay Order:

NBP provides another reason to transfer your money using our facilities. 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.

5.2.4. Foreign Remittances:

To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has

taken a number of measures to:

 Increase home remittances through the banking system

 Meet the SBP directives/instructions for timely and prompt delivery of remittances to

the beneficiaries

New Features:

 The existing system of home remittances has been revised/significantly improved

and well-trained field functionaries are posted to provide efficient and reliable home

remittance services to nonresident Pakistanis at overseas branches of the Bank.

 NBP is providing home remittance services without any charges.

 Strict monitoring of the system is done to ensure the highest possible security.

23
  Special courier services are hired for expeditious delivery of home remittances to the

beneficiaries.

5.2.5. Agriculture Finance:

NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who

produce some of the best agricultural products in the World.

5.2.5. Commercial Finance:-

The loans provided by NBP to a business man who wants to extent their business by

mortgage of some property or stock.

5.2.6. International Banking:

National Bank of Pakistan is at the forefront of international banking in Pakistan which is

proven by the fact that NBP has its branches in all of the major financial capitals of the

world.  Additionally, we have recently set up the Financial Institution Wing, which is placed

under the Risk Management Group.  The role of the Financial Institution Wing is:-

 To effectively manage NBP’s exposure to foreign and domestic correspondence

 Manage the monetary aspect of NBP’s relationship with the correspondents to

support trade, treasury and other key business areas, thereby contributing to the

bank’s profitability

 Generation of incremental trade-finance business and revenues

CHAPTER 6

24
 INTERENSIP EXPERIENCE

6.1. LEARNING FROM INTERNSHIP

This internship has made me learn a lot of things which will be very useful for my future and

career. To learn skills should be an enduring process so that a person should keep shining

himself in order to be competitive person in the market.

6.2. IMPORTANCE OF INTERNSHIPS

Internships are a proven way to gain relevant knowledge, skills, and experience while

establishing important connections in the field. Internships are feet way to get your feet wet

and find out if a specific field is something you could see yourself doing as a full time job.

Internships may be completed during full time over the course of the summer.

As a responsible institution that believes in importance of training and development, NBP

provided us the opportunity of six weeks internship program market with excellent blend of

mentoring sessions, department to department rotation and finally two weeks deputation in

internee area of interest.

6.3. INTERNSHIP EXPERIENCE

During my six weeks internship at NBP no # 08 branch, I have learnt many things about the

operations of NBP.

 Account Opening

 Maintenance of medical/pension registers of ex-employee

25
 KYC Form

 Cheque Book Issuance

 Clearing of Cheques

CHAPTER 7

26
 CONCLUSIONS & SUGGESTIONS

7. 1. CONCLUSIONS:

 It seems NBP is advertising and introducing its new schemes & policies in English

Language.

 The profit on investment in PLS accounts and fixed deposits accounts seem to be

less in comparison with other financial institutions.

 It seems to appear that traditional method still in practice in NBP.

 An over burden of employees observed during Research Monograph.

 Branch network is very slow it takes time to process the transaction.

7.2. OBSERVATIONS:

 Shortage of human resource burdens other employees.

 Need of technological training for senior employees.

 Clerical workers need to perform their duties properly.

7.3 SUGGESTIONS:

On the basis of conclusions the internee draws as the suggestions as follows: -

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  It is suggested that NBP needs to advertise their new services and policies in other

local languages.

 It may be suggested that it may be remarkable training for staff members.

 Everybody may be given its job description according to their job so that the burden

of work may be decreased.

 Branch network should be made efficient by using latest technologies.

 Each single employee should be responsible for single task in order to maintain

effectiveness and efficiency in their work.

 For professional setup, employees should be in proper professional attire

 Each field office should organize training programs for senior employees

REFRENCE

PRIMARY

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INTERVIEWS

Interview with MR Zahaid Shaikh (Operational Manager)

Interview with MR Muzaffar Khan (Clearing department)

Interview with Medam Aisha (Account Officer)

SECONDARY

https://www.nbp.com.pk

https://www.wikipedia.org./wiki/national-bank-of-pakistan

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