INTERNSHIP REPORT ON

NATIONAL BANK OF PAKISTAN

RASOOL NAGAR BRANCH 1981

Internship Report submitted to the Faculty of Management and

Administrative Sciences in Partial Fulfillment of the Requirement for
the Degree of Masters of Business Administration.

Masters of Business Administration (MBA evening 2011-2015)

UNIVERSITY OF GUJRAT
Date of submission: 12, 8,
2013

Name of Program Coordinator

Signature of program coordinator

Acknowledgement
“IN THE NAME OF ALLAH, THE MOST MERCIFUL, THE MOST
BENEFICENT”

In the very first I would like to bend my head in front of ALLAH ALMIGHTY, Who
straight me in every phase of my life, and made me capable to accomplish the most
excellent and helped me to face difficulty during my internship of getting professional
education.

I am very grateful to everyone who helped me in my report as it is necessary part of the

Master in Business Administration because perhaps, I would not be capable to write such
report without their help and collaboration. I extremely thankful to the Teachers of
University of Gujrat who gave me the chance to do my work practically, due to which I
obtained a good knowledge and skills of practical life and work.

Especially I am incredibly thankful to the Operational Manager of NBP Service

industries Branch, Mr. Mukhtar butt who prepared my internship plan and he structured it
in such a way that adequate time was given in every department according to its
significance. Besides I appreciate the staff of service industries branch of NBP, who
gives me all information about the departments where I moved.

I am very appreciative to my family and my sweet friends for their help, prayers, love,
support and their assurance in my skills. The completion of my report is the effect of
their collaboration and ethical support. Without their co-operation and support, a report
like this is complicated at best.

Table of Contents

1 Executive Summary of the Internship 5

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Part-I

Main Body of Report

1 Introduction 7
1 Objective of Study the organization 7
2 Scope of Studies: 8
3 Research Methodology: 9

2. Overview of the organization

2.1 Brief history 10
2.2 Nature of the organization 12
2.3 Business volume, reward honors & success stories of NBP during
Last 5 years 13
2.4 Product lines and services 15
2.5 PEST analysis 23
2.6 Contribution of NBP towards economic 26

3 Organizational structures

3.1 Organizational Hierarchy chart 27

3.2 Number of employees 28

3.3 Main offices 28

3.4 Introduction of all departments 31

3.5 Comments on the organizational structure 33

Part-II

4 Internee work
4.1 Brief Introduction of NBP rasoolnagar branch 35

4.2 Details of Supervisors 38

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4.3 Detailed Description of the Departments where I worked & 39

Weekly timetables 40

4.4 Summary of learning 55

4.4.1 Skills and Qualifications that I have gained from the Internship 55

4.4.2 Responsibilities that I have undertaken during my internship period 56

4.4.3 Influence of internship on my future career plan 57

4.4.4 Correlation of classroom knowledge with internship activities 57

5. Conclusions of the report 58

5.1 General Observations about the sector in which my internship

Institution operates 60

5.2 SWOT analysis of NBP Bank limited 62

6. Recommendations 64

References….........................................................................................................66

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Executive Summary
The position of a bank in financial system of an economy can be considered as a heart in
living creatures. Just like heart pumps blood stream to whole body, a bank in similar way
mobilizes the resources of an economy to their most productive usage. Soft and
proficient working of an economy depends widely on

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sound banking infrastructure. Hence a better understanding of the key functions
performed at banks can help in creating favorable future prospects.

This internship report contains an account of the activities performed, experiences and
observations recorded while being at one of the branches of NBP, namely National Bank
of Pakistan rasoolnagar branch. Special endeavor has been made to outline the basic
operations carried out at the most of NBP branches, the kind of milieu provided therein,
overall structure of the organization, and the strengths, weaknesses, opportunities, and
threats underlying the existing setup of NBP.

The report broadly comprises of two main sections. The first portion of the report
encompasses detailed introduction and overview of National Bank of Pakistan, along
with details of its structure with a texture of personal comments, contribution that NBP is
making in Pakistan’s economy.

In the second portion of the report the details of the activities actually carried out by me
at NBP rasoolnagar branch, are set out. This section entails the details of activities
accomplished in Clearing, Remittances, Account Opening, EBS, Government and
Advances Department, and then a summary of learning is also listed. In this section
answers have been given regarding the skills and qualifications that were earned as a
result of internship course. Further the influence of internship program upon future
career selection has been mentioned, along with the comments on the relevancy of
material taught at the campus and the actual tasks and responsibilities undertaken during
the internship program.

The last section of the report implies a summary of conclusion driven from the Internship
experience, general observation about the sector and the recommendations for the
improvement in existing NBP’s infrastructure. This section also implies references and
annexure.

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Part 1

1. Introduction

It is a brief introduction of internship report, why I done internship in National Bank of

Pakistan. Because it was requirement of my MBA program and to get the experience how
to work in practical life, how we deal and behave with related people. And after that I
have done it to increase my knowledge which has gained

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from the books to increase my confidence. There is also includes Objectives of studying
the organization, an outline of the scope, purpose of internship and the methodology
through which I learned also discussed.

1.1 Objective of Study the organization:

The main reason of this internship is to completion of the requirements for the degree of
MBA program. For this connection each student of these particular courses is
compulsory to carry out training in an appropriate organization chosen by them, for a
period of 6 weeks.

The secondary objective of this job is to realize how the academic knowledge can be
useful to the practical situations and look at an organization’s financial matters and
recognize its opportunities or problems and also recommend corrective procedures. This
internship is also very essential to get confidence and become aware of the method of an
organization. As an internee I want to achieve following objectives during my internship
and organization study:

 To make known with a business organization.

 To familiarize with the different departments in the organization and their
functioning.
 To enable myself to understand how the key business process are carried
out in organization.
 To relate theory with practice. I was also keen to gain professional
experience in an actual testing environment.
 I want to develop my skills in the application of theory to practical work
situations, to develop my attitude conducive to effective interpersonal
relationships and to develop my interpersonal communication because
you are less likely to find a job without all these skills.
 To acquire good work habits and sense of responsibility.
 To enhance my learning experience by application of fundamental concepts
previously learned.

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I choose the bank for internship because I have a great interest in banking and
management because banks are playing very important role in the development of
economy.

1.2 Scope of Studies:

As an internee in National Bank of Pakistan the major focal point of my internship was
on general banking method in one of the branches of NBP. These operations include

 Remittance department
 Advances department
 Clearing department
 Account opening department
 EBS department
 Government department and also other different aspects of overall of NBP
are also covered in this report.

During internship I worked in all departments and learned a lot during that period. Its
scope is wide because I moved in all departments of bank during internship so i got
surface knowledge of all areas of bank. It really helps me in recruitment job.

1.3 Research Methodology:

The statement is stand on my six week study in National Bank of Pakistanrasoolnagar

branch,The methodology reported for compilation of data is primary as well as secondary
data. Personal observation was my main source getting information while working with
bank staff and having conversation with them. Formally arranged discussions and
negotiations also helped me in this regards.

1.2.1 Primary data:

 Personal observations
 Interviews of bank staff

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 1.2.2 Secondary data:
 Internet
 Journals
 Magazine
 Annual reports

2. Overview of the Organization

2.1 History of National Bank of Pakistan:

The National Bank of Pakistan was recognized vide NBP Ordinance Number XIX of 09
November, 1949. British Government devalued its currency in September 1949, India
devalued its rupees but Pakistan did not. It led to a crisis in trading between the two
countries and India refused to lift the Pakistan Jute. To solve this problem, to export
jute NBP was established through an Ordinance of GOP (Government of Pakistan).
NBP maintains its position as Pakistan's premier bank determined to set higher standards
of achievements. It is the major

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 business partner for the Government of Pakistan with special emphasis on fostering
Pakistan's economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large network of
branches locally, internationally and representative offices.
NBP was undertaking Treasury Operations and Managing Currency Chests or Sub Chests
at 57 of its offices where the turnover of the business under the head amounted to Rs.
2460 million. 14 Deposits held by NBP constituted about 3.1% of total deposits of all
Pakistani Banks in 1949, which rose to 38% in 1952. Growth in Deposits was
accompanied by increase in Bank portfolio in advances. NBP lent out to Textile, Yarn,
Iron and Steel and played a pioneer role in support of agriculture and commerce. 15 NBP
advances reached Rs. 554.4 million by December 1959, which was one third of the total
schedule bank credit.
National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its
balance sheet size surpasses that of any of the other banks functioning locally. It
has redefined its role and has moved from a public sector organization into a modern
commercial bank. The Bank's services are available to individuals, corporate entities and
government. While it continues to act as trustee of public funds and as the agent to the
State Bank of Pakistan (in places where SBP does not have a presence). It has diversified
its business portfolio and is today a major lead player in the debt equity market,
corporate investment banking, retail and consumer banking, agricultural financing,
treasury services and is showing growing interest in promoting and developing the
country's small and medium enterprises and at the same
time fulfilling its social responsibilities ,as a corporate
citizen.

Mission

“To be recognized in the market place by Institutionalizing a merit & Performance culture, creating a powerfu
Achieving top-tier financial performance, and Adopting & living out

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 Vision statement:

“To be recognized as a leader and a brand synonymous with

trust, highest standards of service quality, international best practice

practices and social responsibility.

2.2 Nature of National Bank of Pakistan:

National bank of Pakistan provides commercial banking and related services. It provides
different products and services. The Bank has a network of 1512 branches in over 300
cities and towns. NBP give a lot of services to its customers that can satisfied them and
reduce their time consumption by using such services like
 Receiving Deposits
  Advances of Money
 Safe Custody
 Transfer of Money
 General Utility Services
It also provides services to small borrowers, including consumers, small and medium
enterprises (SMEs) and agriculture sector. The nature of responsibilities of the NBP is
singular and exceptional from other commercial banks or financial institutions. The NBP
also deal with treasury treatments for the Government of Pakistan as an agent to the State
Bank of Pakistan for treatment of provincial Government or Federal Government receipts
and payments on its behalf.

2.3 Business volume of National Bank of Pakistan:

The business volume of National Bank of Pakistan is declared in terms of total assets,
deposits, advances, reserves and investments.

Year 2008 2009 2010 2011 20

In 000 Rs In 000 RS In 000 Rs In 000 Rs In 00
Total assets 817,758,326 944,582,762 1,035,024,680 1,149,577,736 1,309

Deposits 624,939,016 727,464,825 832,151,888 927,421,438 1,037

Advances 412,986,865 475,243,431 477,506,564 525,045,764 657,3

Reserves 19,941,047 22,681,707 24,450,244 25,342,817 116,0

 Investment 170,822,491 217,642,822 301,323,804 319,531,21 343,5
3
s
( http/www.nbp.ed
u.pk)

Total assets, deposits, advances, reserves and investments of last five years are stated and
to find out the trend horizontal analysis of each item is done.

Horizontal analysis:

Year 2008 2009 2010 2011 2012

% % % % %
Total assets 100 126 146 160 178
Deposits 100 124 145 166 185
Advances 100 131 150 151 166
Reserves 100 143 163 176 182
Investment 100 122 155 215 228

Analysis:

Total assets:

During last 5 years total assets of national bank of Pakistan has shown a positive trend as
it is shown by above table.In 2009 there is 26% increase, in 2010 it showed a remarkable
increase of 46% as compared to 2008. In 2011 total assets are 60% and 78% more in
2012.
Deposits:

Deposits are also showing an increasing trend which shows a huge business of NBP.in
2009 there is an increase of 24%, in 2010 increase of 45%, in 2011 66% increase and in
2012 there is increase of 85% as compared to base year.

Advances:

Advances showed a 31% increase in 2009 as compared to base year, in 2010 there is a
significant increase of 50% and in 51% increase is observed in 2011 which is not as
much as in 2010.in 2011 advances are increased by 66% in comparison with that of 2008.

Reserves:

Reserves of 2008 are taken as 100% and all that of other years will be compared with that
of 2008.in 2009 increase of 43% is observed, in 2010 there is increase of 63%, 2011
showed an increase of 76% and increase of 82% is shown in 2012.

Investments:

As compared to 2008, 2009 shows increase of 22% in investment, 2010 shows that of
55%, 2011 is depicting a remarkable increase of 115% and 2012 is showing investment
increase by 128%.

In a nutshell, business volume of national bank of Pakistan is expanded during last 5

years.
2.4 National Bank of Pakistan Awards and Achievements:

 "Best Foreign Exchange Bank 2008” awarded by world's leading

financial journal “Global Finance".

 Best Return on Capital for 2006 amongst all Banks in Asia. - “Banker
Magazine” in July 2007.

 World's leading financial journal, “Global Finance” has named NBP as

the Best Emerging Market Bank from Pakistan for the year 2006.

 "Best Foreign Exchange Bank – Pakistan” award for the year 2006 by
world's leading financial journal “Global Finance”.

 Due to consistent improvement in NBP's Core Profitability, Asset Quality

and Economic Capitalization in recent years, Moody's Investors Service
upgraded the Financial Strength Rating (FSR) from E+ to D-, in
November 2005.

 “Best Foreign Exchange Bank – Pakistan” award for the year 2005 by
world's leading financial journal “Global Finance”.

 “Best Bank - Pakistan” award for the year 2005 by world's leading
financial journal “Global Finance”.

 The “Banker Magazine” in July 2005 recognized NBP as the 10th Best
Bank in terms of ‘Profit on Capital' in the world.

 “Bank of the Year” awarded for the year 2005 by the world renowned
“The Banker” magazine owned by the Financial Times Group, London.
2.5 The Products and Services of the NBP:

National Bank of Pakistan is today a progressive, proficient, and customer alert

institution. It has developed a broad range of consumer products, to improve business and
offer to the different segments of society. The National bank of Pakistan is providing the
services as a government bank as well as a commercial Bank. The major functions of
National bank of Pakistan include receiving deposits, advancing loans and remittances
and some other services that are as follow:

2.5.1 DEPOSITS:
 Current Deposit.
 Profit & Loss Sharing Deposit (PLS) Scheme.
 Fixed Deposit Account.
 NBP Premium Aamdani.
 NBP Premium Saver.
 National Income Daily Account (N.I.D.A).

Current Deposit:

The NBP is providing the current deposit plan, it is Ideal for customers who seems for
safety of their money along with complete convenience use the Current accounts.

 Money deposited in the bank, will be used this amount by the bank at
its alone carefulness in Shariah acceptable avenues.
 Customer has flexibility to withdraw his/her whole or a part of
balance whenever he wants.
 This is a non-profitable deposit scheme and therefore the customer
will not be distribution the profits nor will be sharing.

Profit and Loss Sharing Deposit (PLS):

Profit and Loss Sharing Deposits plan will admit deposits on Mudaraba basis. The
customer will have the elasticity to withdraw whole or a part of their amounts at any time
as on their necessity. The NBP will give profit to the customer on the basis of decided
ratio of real profits to be declared by the Bank from time to time. In the occasion of
financial loss, the customer will tolerate the loss in share of their investment. The
customers will not contribute in the administration of the business of the NBP.

Fixed Deposit Account:

In the Fixed Deposit Account the NBP accepts these deposits with least amount sums as
set by the NBP for a fixed period of time. A customer can fix his amount in the fixed
deposit account for the one month to five years period. Minimum deposit is accepted is
Rs.25, 000/= with no maximum limit. Availability of all types of investors i.e.
individuals, partnership firms, public and private limited companies, corporation, trusts,
and government bodies. Profit is paid on maturity. Its profit rate is higher than the PLS
account.

NBP Premium Aamdani:

NBP Premium Aamdani is a retail product of the NBP. The amount of investment
required for this account is Rs. 20,000/- to Rs. 5,000,000.The investment period is 5
years. Withholding tax and Zakat will be subtract 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.

NBP Premium Saver:

NBP Premium saver is a retail product of the bank and the account holder can earn up to
7.25% p.a. +. The minimum saving balance of Rs. 20,000 and a maximum balance of
Rs. 300,000 are required for opening a premium saver
account. Two debit withdrawals allowed in a month and no limit on number of deposit
transactions. The profit is calculated monthly and Paid on half yearly basis. Free NBP
Cash Card (ATM + Debit) facility is available to account holder.

National Income Daily Account (N.I.D.A):

NIDA account was started in December, 1995 to attract corporate customers. It is like
current account scheme and also part of the PLS accounts in operation throughout the
country.

2.5.2 ADVANCES:
 Ijarah (Leasing).
 NBP Gold Loan.
 NBP Saibaan.
 NBP Advance Salary
 NBP Kisan Dost

Ijarah (Leasing):

NBP is providing the loan facility “Ijarah” means “to provide something on rental fee”.
The word “IJARAH” is like to the English term “leasing“.

Initially the NBP will buy the assets as requisite by the customer and consequently the
assets will be rent out to the similar customer on the conditions and rules as agreed with
him.

 Vehicles (both Commercial and Private).

 Office Equipment.
 Plant and Machinery.

NBP Gold Loan:

NBP provides the loan facility for Rs. 25,000/- against each 10 gms of net weight of
Gold Ornaments. There is no maximum limit of cash and repayment after one
year. The NBP provide the roll over facility and there is no penalty for each repayment.

NBP Saibaan:

The NBP Saibaan is retail product of the NBP. It has different product items which are
home purchase, home construction, home restoration and buy of land along with
construction. If anyone has a Home Finance Facility outstanding with another bank he
can have it transferred to NBP through a hassle-free process.

NBP Advance Salary:

The NBP is providing loan facility to the Permanent Employees of Government, Semi-
Government, Autonomous, Semi-Autonomous, Local and other bodies who are
maintaining their Salary Accounts at NBP. The Maximum loan amount is up to Rs.
490,000. And repayment is direct deduction from Salary A/C with maximum repayment
Period of 5 years (60 months). The Markup Rate is SBP Discount Rate + 5%.

NBP Kisan Dost:

This scheme is specially designed to assist the farmers in expanding their businesses and
means of income generation. Under this offer the farmers and their allies like dairy farm
owners are aided not only with loans but also with the technical guidance of agricultural
experts that may help them in better yields per unit of input employed. By utilizing this
product a landless farmer can enjoy a financing facility up to Rs. 500,000 on competitive
mark-up rate against personal guarantee. The financing can also be availed against pass
book, residential/commercial Property, gold ornaments and paper security.
 2.5.3 Remittances:

Four main modes of remittance are:

 Demand Draft.
 Mail Transfer
 Pay Order..
 Telegraphic Transfer.
 Western Union.

Demand Drafts:

A Demand Draft is created by a seller with a buyer's checking account number on it, but
without the buyer's signature. If anybody is looking for a secure, quick and reliable way
to move money, now he can purchase NBP’s Demand Drafts at very sensible rates. Any
person whether an account holder of the bank or not, can purchase a Demand Draft from
a bank branch.

Mail Transfers:

Transfer your money securely and speedily by NBP Mail Transfer service. And NBP also
recommend the most competitive rates in the market. They charges Rs 80/- (for a limit of
amount 100000) exchange rate and RS 75/- postage charges on issuing mail transfer.

Pay Order:

NBP offers another way to move your funds using Pay Order facility. NBP’s pay orders
are a safe and simple way to shift your money from one place to another. And, as usual,
its charges for this service are very competitive.

Western Union:

NBP provides the facility of the Western Union. The foreign remittances can be
received by NBP’s branches.
 2.5.4 OTHER SERVICES

In addition the following services are also being offered at the NBP’s Branches:

Handling of salaries & pensions of Government personnel:

The NBP is providing the service of handling the salaries and the pensions of the
government’s employees.

NBP Cash Card (ATM + Debit Card):

The NBP gives the facility of ATM and debit cards. Use an ATM in any of the ATM’s in
Pakistan and Debit Card in any of the outlets with ORIX POS machine. The limit of cash
withdrawal is up to Rs. 20,000/- per day

Letter Of Credit:

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 our Letter of Credit
service is just what you are looking for. With competitive rates, security, and ease of
transaction, NBP Letters of Credit is the best way to do your business transactions.

Government Collections:

As the NBP is the bank of government of Pakistan so it collects the government

collections. All the government challans and different fees are collected by the NBP.

Utility Bills Collection:

 The NBP is also providing the facility of the utility bills collection. The utility bills are
accepted in all the branches of the National Bank of Pakistan.

Sale and encashment of prize Bonds:

The NBP provides the facility of encashment and sale of prize bond. As the NBP is the
agent of the State Bank of Pakistan so it is providing the services in the absence of SBP.

Safe Deposit Lockers for customers:

The NBP provides the locker facilities to the customers at the competitive charges. An
account holder in the NBP can get Locker in branch of NBP where he/she has account.

Hajj Applications:

NBP is committed to offering its business customers the widest range of options and it
also provide the facility of Hajj applications that are accepted in all the branches of NBP.

2.6 PEST Analysis

A scan of the external macro environment in which the firm operates can be
expressed in the following factors;

 Political
 Economic
 Social
 Technological

PEST analysis is used to describe a framework for the analysis of these macro
environment factors.
2.6.1 Political Factors:
 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.
 Government is providing opportunities to the Organizations to provide
benefits like old-age benefits, disability benefits, pension, etc. These
benefits are to be provided by every organization under the supervision of
Social Security Ordinance. NBP is also providing
its employees the benefits of social security.
 The NBP has a trade mark and a trade name that gives the NBP an
exclusive right by the government policies to use it and enter into
contracts and dealings through its registered trade name.
 NBP is bound to follow the workers safety regulations as laid down
by the workers safety act.
 NBP also publishes its annual reports as are compulsory to publish by the
government.

2.6.2 Economic Factors:

 Pakistani government is somehow stable and focusing on the foreign
trade. NBP is taking advantage of this move by government and is trying
to increase their exports. 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.
 NBP offers a variety of products and services for different types of
customers. For example, NBP advance salary, NBP karobar, NBP kisan
dost etc.
 National Bank of Pakistan keep up its place as Pakistan’s premier bank
determined to put superior values of achievements. It is the main business
colleague for the Government of Pakistan with particular emphasis on
development Pakistan’s economic growth
 through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches
locally, internationally and representative offices.

2.6.3 Social Factors:

 Terrorism remained the biggest challenge and the negative effects
of international economic meltdown also became evident in the shape of
sharp rise in non-performing loans and operating costs.
 With 'Flood Relief' work taking place all over the country, the banks of
Pakistan are expected to contribute immensely in rehabilitation of the
displaced and distressed Pakistanis, along with reconstruction
of the basic infrastructure destroyed in the floods.
 Problems in the energy sector played a key factor in burdening
public finances.
 The salaries of the employees and management are not satisfactory so the
income distribution factor is not satisfactory.

2.6.4 Technological Factors:

 Latest technology is being used by the NBP for services in order to
satisfy customers with fast and active softwares.
 NBP has provided the computers to the staff members to get actual
result and and to save the time.
 Different softwares are being used in NBP’s different Departments.

2.7 Contribution of NBP towards Economic Development:

Banks play an important role in the progress and advancement of a nation. The
contribution that a bank pays to the development of an economy’s objectives are inherent
in its core function, accepting deposits from the savers in the economy who have
sufficient resources with them in idle state and advancing those
deposits in the form of loans to investors who are short of sufficient resources. By
performing this function a bank is actually mobilizing the resources in an economy
towards their most efficient utilization.

With its present status of a purely government sector organization NBP can be
undoubtedly thought of contributing a lot towards the economic development of Pakistan.
NBP is performing not only the role of a national bank but it is also acting as an agent to
State Bank of Pakistan in those areas where SBP is not having its branches. SBP is highly
dependent in the performance of the due tasks from NBP branches especially in those
areas where SBP branches are not operational. This means that NBP can be considered of
massive importance in achieving national economic objectives.

As evident from the countless of schemes, discussed above, NBP is playing an active role
in raising the living standards of the people of Pakistan. In addition to this NBP has also
contributed a lot in the foreign exchange business particularly in the assistance of
promotion of exports to other countries.

3 Organizational Structure

3.1 Organizational (NBP) Hierarchy chart:

PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22
 EXECUTIVE VICE PRESIDENT
GRADE 21

VICE PRESIDENT
GRADE 20

ASSISTANT VICE PRESIDENT

GRADE 19

GRADE I OFFICER
GRADE 18

GRADE II OFFICER
GRADE 17

GRADE III OFFICER

(GRADE 16)

3.2 Number of Employees of National Bank of Pakistan:

Permanent 13237
Temporary/ On Contractual basis 842
Bank's own staff strength at the end of the year 14079
Outsourced 2350
Total Staff Strength 16429
 3.3 Main offices:
The Head Office of the National Bank of Pakistan is at Karachi. NBP grip on its business
all the means through a large set up of branches those are positioned in the country and
also out of the country very efficiently and in point of fact. All branches carry out their
jobs under the regulation of local Regional Offices and regional offices are restricted by
the Head Office placed an outstanding building in the heart of Karachi’s center.

NBP has a wide domestic branch network consist of more than 1250 branches located in
all over the country. NBP has also more than 24 branches out of the country.

3.3.1 SINDH;

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

 Karachi
 Dadu/ Sanghar
 Hyderabad
 Jacobabad/ Shikarpur
 Larkana
 Mirpurkhas/ Badin
 Nawabshah/ N' Feroze
 Sukkur/ Khairpur
 Tharparkar
 3.3.2 PUNJAB;

Punjab has the main offices of the NBP in the following cities;

 Lahore
 Faisalabad
 Gujranwala
 Sialkot/ Narowal
 Islamabad
 Jhang
 Jhelum/ Gujrat/ Chakwal
 Bahawalpur
 D.G. Khan/ RYKhan
 Multan/ Baha'nagar
 Murree/ Attock/ Gilgit
 Rawalpindi
 Sahiwal
 Sargodha/ Sheikhupura

3.3.3 NWFP;

In the NEFP main offices are in the following cities;

 Peshawar
 Abbott Abad
 D.I. Khan
 Kohat
 Mardan

3.3.4 BALUCHISTAN;

Main Branches of NBP are in the following cities;

 Quetta
 Azad Kashmir
  Muzaffarabad
 Mirpur

In addition to this NBP also has its branches working in other countries. The countries where
NBP branches are located are USA, Canada, Germany, France, Bahrain, Egypt, Bangladesh,
Hong Kong, Japan, South Korea, Peoples Republic of China, Afghanistan, Turkmenistan,
Kyrgyz Republic, Kazakhstan, Uzbekistan, Azerbaijan, and Saudi Arabia.

3.4 Introduction of Departments in NBP:

Following are departments in NBP:

 Deposit Department
 Account Opening Department
 Remittance Department
 Cash Department
 Clearing Department
 Advance Department
 Government Department

3.4.1 Deposit Department:

Deposits are very essential element of banks because the entire body of financial
institutions cannot survive without deposits. The cause is that the main purpose of the
banks is that they stimulate the money in the economy. Deposits received by customers
increase the liability of bank and when bank lend it to the
barrowers it makes the asset of bank. The income of the bank is deliberate by the
difference between banks liability and lend the money. The money is borrowed from
them who have access capital.

3.4.2 Account Opening Department:

This department is connected to open new accounts of the customers. The opening of an
account is the establishment of the relationship between the bank and customer. After
opening account at a bank the account holder becomes a ‘customer’ of the bank.

Opening of an account is important for a bank; there is need of huge care in this matter.
NBP has specific structure and technique for opening on account which is harshly stood
for all its branches. There are many types of account such as Current, PLS saving, PLS
term, Premium saver, BBA, Call deposit and NIDA account.

3.4.3 Remittance Department:

Remittance means movement of money from one place to another place. NBP provides
amount of services to shift money from one place to another place. Pak remit is an
internet support Home Remittance Service. The people who worked in other countries
can send money to their family members or friends in Pakistan by using E-Remittance
facility in NBP.

Remittance can take place in three different ways, Demand Draft, Mail Transfer and
Telegraphic Transfer.

3.4.4 Cash Department:

The most carefully segment in the bank is Cash Department. The motive is that it
performs very sensitive activities like bank payment (payments of cheques), bank
receipts (cash deposits prepared by account holders), Government receipts
(collection of income tax, sales tax, property tax and traffic challans) and Government
payments (salary payments to Government employees and Pension payments). Collection
of utility bills (electricity, gas, PTCL and water bills).

3.4.5 Clearing Department:

In the clearing process both the debtors and creditors are different banks and they resolve
their claim. Clearing is the movement of funds from one branch of bank to the other
branch (it may be the same bank or the other bank on which the instrument is drawn).
All commercial banks are associated with the banker’s clearing house which makes easy
the patch up of daily balances appropriate between member banks occurs from the
cheques and cash dealings throughout the country, whether by the general public or
individual banks.

3.4.6 Advance Department:

The banks provide by keeping some valuable securities such as gold, property etc, and
banks are chosen such types of securities because these are not easily decrease in value
(Gold, property etc.) banks also lend money against promissory note. The major
intention of the commercial banks is to lend money because it is the basic resource of
revenue generation for these banks. State Bank of Pakistan has approved set of laws
named as “PRUDENTIAL REGULATIONS”, for this purpose. This law is harshly
followed by all the commercial banks and if any bank does not follow these laws then it
should be punished by penalties under the rule of SBP PR(S).

3.4.7 Government Department:

Payment of pension also is being done by this department. It is also deals with
Government receipts (collection of income tax, sales tax, property tax and traffic
challans) and Government payments (salary payments to Government
employees and Pension payments), Government Department section receives all the
provincial and central receipts.

3.5 Comments on NBP’s Structure:

National Bank of Pakistan hold a technical Structure, it is a structure that strain extremely
regular working tasks accomplished through specialty, in NBP’s structure greatly
modified rules and regulations are followed, everyday jobs are assembled into functional
departments, narrow spans of control, centralized authority, and decision making that
follows the chain of command. National Bank of Pakistan has very centralizes structure
and right decision are taken at the right time. Head office issues policies and these
policies put into perform within the bank as per the strategy. There is a branch manager
who looks after the entire work within the branch and he/she directs the working of the
bank according to the commands. He/she has the skills of advance response to shifting
situation, high capability of conflict resolution. Every person working in each department
is allocated various activities which raise their task performing skills. Every department
focus at its own work no one has intervention in other department. It increases the
proficiency of each department, as there is no external participation by any person. They
are not answerable to any person with whom they are not directly concerned.
The structure of NBP decreases the uncertainty and complication. The tasks are
appropriately hand over to the bank officer who known well about that specific work.
Everyone knows in case of emergency to whom they will report and what to do in time
of disaster. All officers are well supportive and help out each other in their work. This
structure contains a friendly work environment. Every employee of NBP is given
promotion opportunity. Overall, the entire environment of NBP bank is very well
recognized and excellent. It is a well-defined structure.
Part II

4 My Internee Work:

4.1 Introduction of the branch:

I did my internship work in national bank of Pakistan Rasoolnagar Branch. I have
not any practical experience of work regarding the banking sector. When I started the
bank, I was very excited to work in that branch, the manager of that branch Mr. Mukhtar
Ahmed butt is the very kind hearted and cooperative person, he told us about all the
departments of the bank. He gave me the friendly environment and calmly welcome to
me. I was very happy because of their behavior and effectiveness.

The national bank of Pakistan rasoolnagar branch located in Gujranwala district. The
person of people who worked in that branch are 15.it is not a very large organization. The
environment of learning and operational of that branch is very
helpful and effectively valuable for me .The environment of that branch was very kind to
me.I was very much specified to work in national bank of Pakistan in my 6 weeks tenure.

The national bank of Pakistan provides the best services to their customers and
employees also have the best and friendly relations with each other. This branch provides
the basic and best equipment’s to their employees and also provides the best resources to
facilitate the customers and also their employees to get the higher profit and compete
with other branches as well. When you entered in branch you can feel the difference of
this branch with any other branch at the Gujranwala sector.

4.1.1 Details about the branch:

Branch name: National bank of Pakistan

Address: rasoolnagar Gujranwala district

District: Gujranwala

Province: Punjab

Status: online

Website: www.nbp.com.pk
4.1.2 HIERARCHY CHART AND DEPARTMENTS IN NBP
SERVICE INDUSTRIES BRANCH,

Designation of the staff in branch DUTIES

Controlling all the affairs of the
bank
MANAGER Passes the loan of that specific
MUKHTAR AHMED BUTT branch, verify all the ledgers and
then take the decisions, target the
affairs of the bank.
OPERATIONAL
MANAGER Controlling all departments and
MR. RIZWAN AHMAD monitoring operational matters
OG2
Govt. receipts, gold finance,
MUHAMMAD MUNIR (Head Cashier)
cheque payments ,receipts

NAVEED AHMED Officer OG 2

SAEEDA SALEHA TOHEED Officer OG 3

SHEHBAZ BUTT Specialist gold maintenance
ASSISTANT
IQRA TABBASUM Pension maintenance

Unarm guard
MUHAMMAD ASLAM
(Maintenance of files and vouchers)
ATM cards issued to the people,
installments of the cash of bank
ATM INCHARGE/SUPERVISOR customers understood the problems
MR. MAZHAR CHEEMA of bank customers
, balance day book, progress
report.
REMITTANCE
Demand draft, mail transfer, online
SAIF ULLAH WARRAICH

HAJI IFTIKHAR&AKHTAR RASHEED Sweeper guard

AZAAN (Messenger) Helpers

4.1.3 Dates OF STARTING AND ENDIND OF WORKING IN NATIONAL BANK:

I started my internship on 8july 2013 and the ending date was 18 september 2013.
These six weeks are the best experience of my life.

4.2 Supervisor:

During my training and internship in national bank of pakistan, miss Salehatoheed and
iqratabbasum was my supervisors. They both are very polite to me and teach me as just
like the good companion. I am very lucky that I have such kind of workers during my
internship. They both are became my good friends and teach the basic and general rules
of the different activities of the bank
like how to fill the vouchers, how to fill the different ledgers, how to make the entries in
ECIB and online payments to others banks, how to opening the accounts.

These are all the different kind of activities which I learned from my both supervisors
and especially the Miss Salehatoheed. She was very well honored and having the
intelligence on their work.

4.3 My working areas in which I accomplish my internship

During my six weeks of short period of internships, I have to work on different

departments. The basic 3 departments in which I worked these are:

Departments:

 Advances department
 Government and pension maintenance department
 Customer service department
MY WORKING ACTIVITIES:

FIRST WEEK

Date Day Work Description

8-7-2013 Monday I was introduced to the bank employees and all departments

9-7-2013 Tuesday I filled deposit slips and prepared scroll for utility bills and ledgers

10-7-203 Wednesda I fill deposit slips and issued cheques

y

11-7-2013 Thursday Fill the deposit slips and cheques issuance

12-7-2013 Friday Filling of slips and entries in ledgers

Verification:

Ma‟amsalihatoheed Officer

grade III
Second week:

Date Day Work Description

15-7-2013 Monday I transferred the information of gold items on forms provided by

supervisor

16-7-2013 Tuesday Along with transferring of gold information, I made entries in

advances ledger

17-7-203 Wednesda I made entries in ledger and started preparing loan statement
y

18-7-2013 Thursday Along with entries in ledger, I entered data regarding customers in

ECIB

19-7-2013 Friday I completed data entry in ECIB

Verification:

Ma‟amsalihatoheed Officer

grade III

Third week:

Date Day Work Description

22-7-2013 Monday I made online tax payments to federal board of revenue

23-7-2013 Tuesday I made online tax payments to federal board of revenue

24-7-203 Wednesda I updated loan statement according to new borrowers of bank

y

25-7-2013 Thursday I observed how account opening form is generated and got it

filled by customers

26-7-2013 Friday I learnt how to generate advances forms electronically and also

transferred information about gold items to that forms.

Verification:

Ma‟amsalihatoheed Officer

grade III

Fourth Week:

Date Day Work Description

29-7-2013 Monday I deleted the information of customers whose accounts has been

closed to update the statement according to the exact number of

customers

30-7-2013 Tuesday Same as above

31-7-203 Wednesda Same as above
y

1-8-2013 Thursday I transferred information about gold items on the forms and

made entries in ledger

2-8-2013 Friday I updated loan statement and entered information at ECIB

regarding customers and loans

Verification:

Ma‟amsalihatoheed Officer

grade III
Fifth week:
Date Day Work Description

5-7-2013 Monday Provided forms to customers, got them filled and made

general entries

6-7-2013 Tuesday I learnt how to make data entry for renewal case at ECIB and
also completed entry of customer and loan information.

7-7-203 Wednesda I completed forms for bank by transferring information of gold

y items which are held by bank

8-7-2013 Thursday I entries of loan against gold and entered information at ECIB

9-7-2013 Friday I finalized loan statement of the month

Verification:
Ma‟amsalihatoheed Officer

grade III

Six week:
Date Day Work Description

12-7-2013 Monday I calculated amount of pension for government pensioners,

wrote it on slips and made entries in pension register

13-7-2013 Tuesday I did calculations of pension and made entries in register

14-7-203 Wednesda I did calculations for more than 1 month and along with
y entries

in register, I prepared scroll for pension and then balanced it.

15-7-2013 Thursday I issued some Cheque books and also prepared scrolls for

utility bills.

16-7-2013 Friday Along with calculations of pension I also entered loan and

new customer information at ECIB

Verification:

Ma‟amsalihatoheed Officer

grade III
4.3.1 The different departments of national bank where I worked:

I already described that I worked in different departments for gaining the practical
knowledge about the different activities of the bank.

Here I informed that I worked in 3 basic departments, firstly:

4.3.1.1 Customer service department:

The customer services department in any kind of the bank branch provides the best and
basic resources to their customers and eliminates their problems by creating the best
learning environment. The bank is the large organization that receives the deposits and
takes the advances for gaining the profits. But the department of the customer service
provide the customers that how to fill the vouchers in terms of dates, proper codes and
also the proper signatures of the customers. This kind of department also provides the
cheque books and the procedure regarding to that cheques that how to fill the cheques.
The proper signatures of the people must be written in the cheque otherwise the cheque
may be rejected. So, it is the function of the customer service to provide the best suitable
rules and regulations regarding the vouchers, slips and the cheques as well to their
valuable customers.

This department also deals with providing the services of the pensions to the pensioners.
The department of customer service takes the great role to provide the customers the
best solutions about their problems and make the customer
satisfied in terms and nature of their different conditions which the people want to solve
out.

In kind of any quarrel situation in bank, the different departments of banks and their
employees take the positive step ahead. But this department has the great importance to
solve the kind of problems because basically, it specially deals with such kind of people.

4.3.1.2 Advances department:

The department of advances in all over the banks of world has the same importance. Its
basic purpose is to provide the advances to different customers who wants to get the
advance but the rate of interest must be apply regarding the amount of loans and
advances. As everybody knows, that bank only works for profits and the advances
department has the most significant role in any kind of banking sector.

The mostly profits are earned by this department of advances through the interests which
are indirectly received by the people who take the advances. The control of all the
advances is mainly the responsibility of the credit management. The bank takes the
deposits from different kind of people who have the excess amounts and provide the
advances and funds to the needy people who have not any other kind of or way of
funding but at the high rate of interest.

This department also provides the other different advances activities like, it also take the
advance in against of the gold items. The different rules and regulations apply in the
place of gold advances.

If any kind of the individual or the organization, who needs loan or advance from the
national bank of Pakistan has must fulfilled the following necessary information, he must
fill the specific form which was necessary for the banker or the person who gave the
loan.
 This basic information’s are as under:
 The borrower name and address
 The individual financial condition that in case of the due date of loan, He
may be able to provide the loan back to the bank or not.
 There must be the mention of the security and analyze its market value.
 The borrower also signs the specific type of form named as promissory note in
which he signs that at the due date he returns the entire amount along with their
interest.

4.3.2 The different principals and rules of Advances:

There are the basic five principles which the bank must be observed while gave the
advances and the loans.

I. Safety loan
II. Security liquidity
III. The dispersal security by the bank in case of need
IV. The bank remuneration as interest
V. The loan along with the suitable security

4.3.3 The different forms of advances:

NBP make and provides the advances or loans in different forms to its valuable
and specific customers as the condition of the borrower needs. Advances can be
the following types:
 cash finance without any security,
 Overdraft facility
 Demand finance.
 a) Finance of cash without any security:
This kind of loan is very beneficial for the big organizations and the other kind of
large business concerns. These large scale businesses can get the available cash
finance by the merchandise or by the produce.It may also be very useful because
the large organizations can get the finance or the whole amount at once time.
Such kind of department is very useful especially for the borrower because he
will pay the markup on just that amount which he actually uses. The full limit of
amount, if the borrower not use than it is the loss of the bank because he lost the
opportunity to
earn the interest or markup.
It is the responsibility of the bank to make the specific rules in the agreement
for the use of amount that will pay the quarter interest of the full amount. In that
case the borrower can reduce the chances of loss.

b) Overdraft Finance

Overdraft finance is the most commonly used advance or loan which is provided by bank
mostly to its valuable and specific type of customers. According to this facility, the
customers can get the loan more than the amount which he has in their account. If such
type of advance is against the collateral security than it names as “Secured Overdraft”
and when the customer who borrowed the money cannot offer any type of collateral
security rather than his personal security, this type of facility is called a“Clean
Overdraft”. The customer who borrow the money is in the profitable financial condition
because he has to pay the charges only on the outstanding amount.
 c) Demand finance

This type of loan can be paid at any time because such type of finance has not any kind
of the maturity date. This can be paid at the demand of the lender when he demand for
the early payment ant there may be no charges apply for such this kind of demand
finance.

I spend my mostly time in advances department in which I deals with gold items. This
department takes the advances against the items of gold weightage and the markup rate
apply in terms of the gold reserves was 15.5%. Those departments mostly take the loans
for one year. The special rules applied for such type of agreement and the customers can
also renew the loans to extend the time of loans. The forms for making the agreements
can generate by electronically and then the further proceedings or the tasks can be done.

4.3.4 Opening the new account:

The opening of the new account is basically the contract between the customers, the NBP
and the banker who opened the account. The account can be opened electronically by the
specific system of the bank. The different accounts can be opened by the demand of the
customers and after this the bank allot the account numbers to the customers so than they
will be able to deposit the amounts.

The forms for the new accounts generate electronically and then the forms filled by the
customers regarding to the requirements of the customers.

Account opening procedure:

 Account title
 Information of the account holder
 Account number
 Signature of the specimen
 Next of kin information
 Deduction of the zakat instructions
  Account nature
 Thanks letter

4.3.4 Account types:

These are theFollowing types of accounts which are opened in NBP:

a) Sharing the profit and loss account:

Profitand loss sharing account is mostly for the small traders or the salaried persons or
the practical or professionals who have not the much transactions and amount to deposit
in the bank. But they have the ability to deposit it in any time and in any form. The bank
takes the deposits from the small traders and the professionals and the salaried persons
and then gave the advances to the large organizations for getting the higher profit. The
people share the profits but in case of the loss the customers can also share it for their
investment.

b) Current account:

Current account are opened for mostly the business sector, because they have the large
business connections with other businesses and they need money at any time so the bank
take the deposits and the cheques for such kind of business class because it create the
benefit for the bank and create the entertainment also.

So the banks do not invest the whole amount because the current account holders can
demand for the amount at any time. Bank receives the higher rate of interest for current
account holders because bank cannot invest their deposits in any other beneficial
projects.

4.3.5 FEATURES OF CURRENT ACCOUNT:

1. Current account must be opened by the amount of rupees 100.

2. Banks create the no limit for the deposits.

3. The advances and the deposits can be withdrawing with the permission of the current
account holders.

4. The foreign currency and the local currency can be deposited in the accounts of the
current account holders.

5. The following people or institutions can deposit the amounts in current account:

 Individuals
 Sole proprietor
 Partnership organization
 Clubs societies and other institutions

6. The bank can play an important role as an agent because he receives the deposits,
prepare the cheques and then make the payments.

7. Any kind of the profit is not paid to the current account holder.

8. Account holder also provides the information of next of kin that in case of any kind of
problem I may not be able to response to the bank, than the next of kin will be
responsible for the current account holder.

9. Bank can withdraw the amount from the current account holder at any time.

10. Current account holder must maintain the maximum amount in his account.

11. Bank also provides the ATM cards to their specific customers to made the cash
available for 24 hours.

12. The statements of the accounts provided to the depositors of the account holders
whenever they required.
c) Term deposits:

Term deposits are basically the type of deposits which cannot be given at demand
because the specific time is fixed for such deposits that’s why these are called the “term
deposits”. If the individual who wants to get the money before the fixed time. Then he
must pay the charges against these deposits.

4.3.6 Government and pension maintenance department:

Government and pension maintenance department of the NBP has the basic function to
calculate the amounts of pensions prepare the scrolls for the safety and made the ledger
entries. Miss IqraTabbasum was the head of this department. Scrolls are basically
prepared to check out the whole amount which was given.

This department also made the demand draft and other activities of the governments like
the deal with 20% increments by the government after the date of the 30 july.

4.3.6 My different working activities during my internship:

4.3.6.1 The department of customer service

In customer service department, at the first day of my internship the branch manager gave
me the introduction of all the departments where I worked in my next six weeks
internship program. The manager of that branch introduced me the head of the customer
service department Miss IqraTabassum. She told me the different general activities and
rules and regulations of the banks. I was very inspired with her behavior and the manager
also does me the favor to work in that department and also gain the relevant information.

 In the monitoring of the head of customer service department I learned the:

 How to fill the vouchers and write the dates and amounts in a proper
manner
 How to fill the cheques and their appearance in the best and effective
way
 Fill the cheques in that particular way that the chances of problems
must be eliminated.
 This department also help the customers to account opening
procedure and provide the best services for the customers
 This department provides the new cheques to the customer with the
proper filing along with them.
 The department of customer service in national bank service industries branch
also help me to how to reissue the cheque in case of any loss.

4.3.6.2 The chequebook issuance at the first time

In customer service department I performed the various activities which I will described
in my next further steps. But at the first I leaned in this department that how to issue the
new cheque book to the account holder. The person or
individual who opens the new account in NBP, than the new cheque book issued to that
customer. He generally signs request for the issuance of the new cheque book.

4.3.6.3 Cheque book reissuance

Secondly I learned that when a small level of quantity of leaves are left in cheque book.
Then the customer can sign the request for the reissuance of the cheque book. But there
are the conditions which must be fulfilled. The requisition slip must be filled by the
customer and then send the request for the new cheque book through the NIFT and with
the minimum 5 days limit, the customer receive the cheque book.

The account holder must bring the copy of CNIC if the authority of the requisition slip is
in the hand of any other person.

4.3.6.4 Loss ofcheque book

Thirdly I learned, if the cheque book has lost by the customer than firstly he should
inform to the bank regarding the loss, the bank officer enter all the account
numbers of the cheque in the system and cash of these cheques all over the Pakistan
would be stopped.

4.3.6.5 Deposit slips preparation:

I learned that how to fill the deposit slips in bank. I prepared the vouchers and deposits
slips in the bank. Basically, there are the two types of slips the first one is bank copy and
the other one is the customer copy. The account number and
the proper date is mentioned on the top of the customer copy slip. The exact amount must
be written in words and also in amounts to the customer slip. The signs of the account
holder must be written in the slip of the customer than he goes to the cashier at the cash
counter for the deposit of the amount along with that slip.
Both the parts are than separated and the bank copy is kept by the banker for any kind
of the future use. Because without this evidence, the amount cannot be deposited.

4.3.7 ADVANCE DEPARTMENT:

In advances department I spend my mostly time about 3 weeks of my internship. I
mostly deal with the gold items. The borrowers who want to get the loan contact with the
advances department. The authorized persons of the bank gave the verification about the
advance. The forms are generated electronically by the system. The department head
gave me the chance to do the next process. I take the signs from him and then gave the
slip.

Then I made the general entries in the ledgers related to the gold. I made the entry in
ledgers related to its market value, markup rate and the exact amount of loan with the
disclosure of the gold items.

I transfer all the information to the ECIB of the customer and saved it for the next use.
All the information of the customers like CNIC, Age, occupation, Address, phone
number, education and the marital status. The loan statement of the new customers was
also updated by me.

The loan statement which was updated by me contains the information of the loan
amount date of the maturity and also the specific asset. If the information was fully
matched with the CNIC than I renewed it and delete all the loan information. But if it
was not matched than I save it in the system. I transfer all the information to the data
transfer if it may be new or renewed.
Same tasks performed by me in advances department which has been relevant to the
gold and the cash as well. I do many ECBI entries in the system and then make the
general entries in the ledgers; I also made the vouchers related to that process. Some
more tasks which I performed in that department that those accounts which was renewed
I write the “renew” at the top of the ledger for eliminating the any kind of problem in the
future. Because the extension of the payment period now increased.

The entry which was held in the loan statement was the maturity date CNIC number and
the amount of loan and the security of the market value.

4.3.8 In government and pension maintenance department:

In government and pension maintenance department, I learned a lot by the head of the
department. He told me the different procedures and calculations of the pensions.
Because I have started my internship after the date of 30 july than government imposed
the 20% increments for the government employees.
The retired government employees who receive their increment they simply receive their
pensions and the officer write down the amount of pension in the ledgers with the red pen
for the record of the bank and the pensioner and the officer signs the forms and gave it to
the pensioner.
The pensioner goes to the cash counter and receives their money. It’s also depend to the
pensioner that he can also transfer the amount of pension in their account by the deposit
slip for future use.

4.3.8.1 The case of increment:

As I already discussed that while doing my internship the government applies the 20%
increments for the pensioners. The calculation of the pensions make by the specific
formula. The persons who take the medical firstly I did less the medical
from their previous medical amount and after this I apply the 20% increment on that
amount, if I do not less the medical than it may create the increased pension that is not
the right way. So in that incremental pension amount I again add the medical and then
finalize the amount of pension. The people who did not receive the amount of increments
and also the pension from last few months same procedure applied for that people I add
the entire amount and also the increment amount.
The amount of increment writes on the top of the page and then the amount write on the
slip and further signs by the officer.

4.3.8.2 Ledger Entries:

I also perform the duty of the ledger entries. The pensions of the one month were written
in the box of the present month. But the amount of pensions of more than one month was
written below the each month. The incremental amount was written at the top of the page
for the next month’s payments.

4.3.9 Different tasks assigned to me as my internship:

I got the very practical experience during my internship program. I visit the
various departments and get the knowledge which will be helpful in my future
career;
  Fill the deposit slips and vouchers
 Fill the ledgers of governments and make the general entries
 Calculate the amount of pensions
 Prepare the scrolls for the bills and government
 Transfer the information to the ECIB for the security
 Updated the loan information
 Make the Online payments
 Delete all the data of the borrowers from the system whose
accounts has been closed.
 Account opening

4.4 Summary of learning:

4.4.1 Skills and qualifications that I have gained in my
internship:
During my internship in national bank I gained very specific type of skills and
knowledge. In my university career I have not any kind of experience of job
environment. I learned that how to work in the pressure in an effective way. I also know
the value of time. During my six weeks tenure the I have got the practical experience and
it also increased my self confidence level.
I learned that how to survive in such kind of environment and I meet with different types
of customers who have the different demands on various tasks. To meeting with those
customers I also enhance my communication skills and it will help me in future for boost
up my personality.
Doing Internship in national bank also taught me that working on the daily basis
eliminate the chances of errors in further future plans.it also help me to apply my
academic knowledge in practical environment.
My working experience also help me in my student career because the mostly tasks
which I done in NBP will be able to me to apply these activities in my university so I
gain the best possible results which obviously help me in promotion of my self-
confidence and also working career in future.
In my starting days of the internship I feel hesitation to interact with the people but after
some time when I spent more days I gained the friendly environment with the department
heads and also with the manager of that branch.

4.4.2 My Responsibilities during My Internship:

I performed the various responsibilities and activities in my internship:
 Prepare the slips and vouchers along with their names exact amount proper
date and the account numbers for the different purposes.
 Perform the duties in the government department and made the
calculations of the pension with the special formula.
 In advances department I mostly spent my time in making ledger entries
and also transfer the information to the ECIB for the record of information of the
borrowers.
 Perform the duties that how to open the new account with the help of the
officer
 Updated the statement of the loan with the amount of loan and date of the
maturity.
 Perform the duties that how to fill the cheques and in case of reissuance of
cheques or loss than what was the procedure.

4.4.3 Effect of Internship in my future career plans:

Now I really feel that during my internship in NBP, I got the basic knowledge about the
banking sector. Now I can get the job easily in any branch because I have the some
experience of work. The University of Gujrat gave me the opportunity to work out in any
organization to enhance my skills and abilities in my vacations.
So it would be very helpful in my future career because I work practically in the bank and
I know the environment of the bank, I personally very inspired by practically work in
national bank. It is my dream that in my future I got the job in NBP and show my
working activities in that organization.
When I observed the different departments I learned that this task is very easy to perform
but when I personally do the work I taught that it is the very difficult task But at the end
it will just say that I know the practical work in the banking sector or in any other areas
is not the very easy but practically it increased my plans for future to wore more and in
the very difficult condition. That is now basically a challenge for me and opportunity to
work in future in the best way.

4.4.4 Are the internship activities correlated with classroom

knowledge?
Yes the activities of internship are co-related with the knowledge of the classroom. The
knowledge which I gained in the in the class room is the one way of knowledge and the
knowledge which I perform in the internship is another way. The knowledge which I
gathered in my classroom lectures I apply my concepts in the operation of different
banking activities. But there are some different basic differences from the knowledge of
books and also in the practical work.
We learned from the books the theoretical information which I can apply in the banks for
improvement of the skills. In the books or the lectures of the classroom we generally
know how about the formulas which I can apply in the forms and other various projects.
Some old employees who have not the books knowledge But they perform their duties
well because they have the experience in their particular field. In my internship I also
meet with senior and retired employee of the bank. He gave me the rules and tasks about
the banks that how can I perform when I work in that branch. I orally can calculate the
profits of the banks because I have the experience of more than 25 years.
But the one think that raise the question he dislike the computerized system and wants to
promote the manual system. I personally not agree with their decision.
The decision which was taken by the bank are not co-related with the classroom lectures
because mostly the teachers already take the decisions about the students and in the
sector of banking the different concepts and decisions made by the manager or the heads
of that particular branch. Because there is not any kind of combination with the decision
of the classrooms and the banking organizations.

5 Conclusion:
The following are the some experiences which I got in national bank of Pakistan
rasoolnagar branch in my six weeks of internship.
These are the:
 Bank has the very important role for every economic country. NBP is the
large commercial bank and take the positive steps for the improvement and
the development of the country.
 The different duties I perform in the national bank. Bank provides me the
various tasks and the activities which I never know before my internship
program.
 Bank is the profit seeking sector and during my experience in national
bank that due to the well-organized working it earn the higher profit.
 I also experienced during my internship in national bank that the
classroom knowledge differ from the bookish knowledge.
 I also able to improve my communication skills and confidence while
interacting with the various customers and the employees and staff in the bank.
 I learned a lot that how to behave practically in the practical environment.
 I also able to take the decisions in my student career in university.
 Internee must obey all the rules and regulations for smoothly perform all the
operational activities.
  I also learned that how to face the time management and in case of the
load how to perform the work and tasks.
 Perform the activities of the job in the effective way. The person must
commit with the job and deals all the problems with the proper solutions.
 I also learn that I should not misbehave with the customers and the staff of
the employees because it will create the dis- satisfaction in the minds of the
employees.
 The NBP should bring the new and fresh knowledge that has the
technological training and some experience for the betterment of that
branch.
 I taught that the loans given to the large organizations for getting the
higher profit.
 The deposits must be taken at the lower rate of interest and take the
advances to big projects at higher rate of interest.

5.1 General Observation Of the national bank of Pakistan

(Rasool Nagar branch):
Due to the increased number of private banks the people has a lot of alternative options to
save their cash and other gold or property files. Now the competition among the banks is
very high. The people have the different choices to take the services from their concerned
bank. So it is the responsibility of the bank to provide the best services to the customers
in an efficient and effective way.
The hiring process of most of the banks is not very appreciable. The persons of most of
the banks even did not know about the use of technological resources. They have not
any kind of training and work in banks just on the reference basis. The banks who hire
the people which has not any kind of confidence and lack of the verbal skills than it will
be the loss for the bank because due to the competition the other banks take the
advantage and motivate the other customers through their best services and gain the
competitive advantage.
The attitude of the private banks towards their employees and customer is out of class.
But the people and the employees of the government institutions misbehave with the
customers. They mostly waste their time and can’t perform their duties well. The mostly
customers of the government organizations are not happy because of the rude behaviors
of the staff.

5.1.1 Here are the some problems or critical condition which I

observed in my internship:
 The employees have the low efficiency level related to their work. They
were not know that how to perform the task in less time.
 There is the shortage of the staff in the service industries branch. The employees
who already work in that branch do a lot of work. So there is the need for more
employees for the development of that branch. Mostly
employees are rotated to fulfill the activities of the other banks.
 The employees have to enhance their technological skills and technical education.
The training process must be applied to the employees of the banks for the
development so due to this they can also perform in the
foreign countries effectively.
 NBP is running those branches which are not producing income and the
bank bear their expenses. The banks are unable to produce the cost of
expenditures so they must be cut down.
 The MCB is on top of the list due to the modern banking facilities. NBP is far
behind so it is the duty of national bank to provide the better banking facilities to
the bank.
  The behavior of the employees with the customers is not so good. The
customer most of the time feels disappointed due to the bad and rude
behavior of employees and workers as well.
 The customer satisfaction level in national bank of Pakistan is not very
admirable. The customer has to wait for getting the required information.
 In NBP there is the poor record and management system. For the certain
record the staff has to struggle hard to find the files. There is the no proper way
for its development and improvement.
 There is the need of the promotions for the sincere employees. But the
new and young employee gets the promotion after the long period of time.
 The NBP hire the people on the reference basis so the bank should
motivate and hire the people on merit basis.
 There are not the proper physical facilities for the customers, in case of the
pensions there is the rush of people and bank have not any kind of proper sitting
arrangement.

5.2 SWOT Analysis:

With the help of the SWOT analysis we can check out the strength, weaknesses
opportunities and the threats. Here I do the SWOT analysis of the national bank of
Pakistan to check the achievements and also some critical conditions.

SWOT analysis was conducted which is as follow:

Strengths

 The guaranteed security given by the government of Pakistan

to the national bank.
  Biggest contribution by the semi government and the government
 Agent of the state bank for the currency functions.
 Collaboration with the government institutions for the
collection of the taxes
 Largest network connections to overseas.
 Secured job for the people compared to the other
commercial banks.
 Purchase and sales of the prize bonds.
 Small and the heavy loans for the large enterprises as well as for
small institutions.
 Documented and filling procedure is very easy
 Guidance for the experienced people.
 Have the special role in economic development
 The retention rate of employee is very high

Weaknesses
 Properly not utilized the training equipment’s and technology.
 Setup of the banking sector is very formal.
 NBP prevails the bureaucratic style.
 Lack of the highly educated and skills persons.
 Fixed deposits rates are not compatible with the competitor’s rates.
 Foreign currency accounts are more restricted and fewer
customers oriented.
 Bank staff has not properly cooperated with the colleges and the
customers.
 Poor attitude toward the work of the bank.
 Online branches are very limited
Opportunities

 The ability to get a larger customer base

 Global expansion can be possible because it is an enormous market, which

will be a great and big opportunity in the future

 National bank can take the advantage of the online internet banking
facilities.

 Providing the Information Technology loans to the university students and

educational institutions in order to boost the Computer and Management
studies in overall the country.

 National bank providing the personalized services to the customers

 Offering and providing the high deposit rates and reduce the high lending
rates in the country.

 Offering the big loans to the large projects and the welfare institutions for
creating the good image in the minds of the general public.

Threats

 Permanently changing the technology in the banking areas.

 The uncertainty of the different banking organizations.
 Shows the competition from the operations of the lower prices
 Failure of the different products and the customers due to the non-
acceptance of the customers.
 Boosting competitiveness in the banking industry.
 Advancement of the bad debts
 The government borrowings are very frequent
 Lack of economic stability in the country.
6 Recommendations
Doing my internship in national bank I have experienced some recommendations for the
national bank which would be helpful for the national bank in becoming the world
class bank in the future.

As I already discussed some problems which I faced in my internship. But the following
are the some recommendation for the improvement of the infrastructure of the
organization. The bank must follow the given steps for facing the competitiveness in the
whole country.

 The bank should need to satisfy the employees through giving the rewards. A
happy and satisfied employee delivers more than the dis satisfied customers. The
bank should gave the salaries at the fixed time
and do the promotions on the sincerity basis.
 Selection of the employees must be through the media and newspaper so
the better and qualified employees can be formulated.
 The NBP Rasool Nagar branch mostly done the work by manual system,
so there is need to adopt the new technologies like computerized system must be
adopted.
 The bank must investigate the borrower while lending. The financial conditions
of the borrowers must be investigated that in the future he will be able to repay
the money or not. Loans must be given to the well
reputed organizations because the risk of loss can be eliminated.
 Most of the officers in the national bank have the lack of training of using the
technological tools. Present training program must be improved for improving the
efficiency of the officers and the staff as well. The old and ineffective employees
of the organization are merely a burden for the bank because of its high cost.
  The bank will definitely get the benefits if it improves their working
environment through providing the friendly environment. As it enhances the level
of trust and the sincerity. It also helps to improve the production
of the bank.
 The promotion must be given on merit. The banks mostly gave the promotion to
the experienced staff that will create the dis satisfaction in the minds of the new
employees. It may also create the destructive
condition in that particular branch.
 Special attention should be given to the employees behavior towards the customer
because without the customers the bank worth nothing. The bank should need to
behave with the customers in a very inspiring way. It will create the positive
impact in the minds of the public which ultimately
higher your profit level.
 The bank should prepare the separate counter for the collection of the utility bills
and the other different nature of bills.

The officers must think about these steps to satisfy their customers.

References

Mr. MukhtarAhmed Butt(Manager)

http://nbp.com.pk/AboutUs/index.aspx

http://www.scribd.com/doc/28186321/1/History-of-National-Bank-of-Pakistan

http://www.privatisation.gov.pk/Finance/Nbp.htm

http://bankofpakistan.blogspot.com/2011/02/brief-history-of-nbp.html
http://www.scribd.com/doc/63414587/2/BRIEF-HISTORY-OF-NATIONAL-BANK-
OF-PAKISTAN

http://www.scribd.com/doc/52393873/14/Product-lines

http://www.nbp.com.pk/Services/index.aspx

http://en.wikipedia.org/wiki/National_Ba...

http://www.scribd.com/doc/47811601/Intro...

http://www.hktdc.com/sourcing/hk_company...
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