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Submited by:

SiSTech (Sukkur Institute Of Science & Technology)

In the name of

who is most beneficent and merciful.


I.. II. III.

Certificate Dedication. Acknowledgement

Chapter # 1
1.1. 1.2. 1.3. 1.4. 1.5. 1.6.


Page #

History of NBP An Overview Objectives Research Methodology Purpose of Study Mission, Vision, Value & Social Commitment.

Chapter # 2
2.1. 2.2. 2.3. 2.4 Organizational structure Organizational Chart Branch Structure Duties & responsibilities

Organizational Structure

Chapter # 3
3.1. 3.2. 3.3. 3.4. 3.5.. 3.6. 3.7. 3.8. 3.9. 3.10. 3.11. 3.12. 3.13. 3.14. 3.15.

Functions Of Various Departments

Accounts Opening Department Clearing & Transfer Delivery Corporate & Investment Banking Commercial & Retail Banking Treasury Risk Management Audit & Inspection Special Asset Management Finance & Corporate Affairs Operations Information Technology Human Resource Management Compliance & Control Products of HBL. Foreign exchange Department

Chapter # 4
4.1. SWOT analysis Conclusion Suggestions Bibliography.

SWOT Analysis

This is to be certify that ----------------------------------------------------------------------------------------------- student of ----- final semester of Sukkur Institute of Science & Technology has completed his Internship & made his term report on Habib Bank limited Hussaini Road Branch Sukkur.

HASSAN BHAYO Director of SiSTech.

This humble effort is dedicated to my honorable PARENTS Who did their best to uplift me to the heights of an ideal life and whose affections inspired me to love mankind and to respect others. TEACHERS Who built my moral and made possible for me to achieve the highest of ideal life FRIENDS Who have helped me in preparing an internship and always me in all type of matters.


Praise to the almighty ALLAH, omnipotent, who bestowed upon us the potential and ability to accomplish this work. My heartiest gratitude of our Institute SiSTech who gave me a chance to do Internship and also give guidance, encouragement and construction criticism during the completion of research report. I am also grateful to management and staff of Habib Bank Ltd., Manager for their kind and valuable co-operation without which the completion of this report would not have been possible.



National bank of Pakistan was established on November 8,1949 through passing of a special ordinance in the National Assembly. The need for the establishment came due to the reason when at that time newly born country was facing economic crises. To get rid the intervention form the Reserve Bank of India, a self owned and operated Central Bank by the name of State Bank of Pakistan was formed in July 1948 to carry on the responsibilities of issuing the currency and most importantly controlling the flow of money inside the country. State Bank of Pakistan after its formation demanded from the Indian Reserve Bank the assets against the Indian currency retired from Pakistan territory. Government of India refused to hand over the assets worth about five hundred million rupees. This dispute is still unsettled and these assets are still not delivered to Pakistan. When British decided to devalue its currency in 1949, India followed a suit against it, but Pakistan did not, a decision, which attracted some criticism at that time, but was, certainly justified itself in the way it facilitated the industrialization in of the country. The arrangement have been made that the currencies of the countries were to be at par with each other and neither could alter the par value of its currency without consulting the other. India promptly challenged Pakistans decision as a contravention of the agreement. After some correspondence between the two Governments, India agreed to recognize the par value of the Pakistani rupee and a date was decided on which both Central Banks would announce the par value of their currencies. An attempt was made by the Pakistan Government to persuade India to adhere to their previous agreement and an officer of the Finance Ministry was sent on a one-man mission to Delhi for this purpose. The officer had discussion with the Indian Ministry of Finance at the highest level but his mission not fruitful. As a result of the exchange rate controversy, regular trade and payments between the two countries came to standstill. India froze the surplus earned by Pakistan from a favorable balance of trade, and one more financial dispute, which is still alive, was added to the unsettled list. One of the immediate consequences of this situation was the withdrawal of Mrwari Merchants of the Indian finance, which used to be employed annually for the movement of Pakistans jute crop. A crisis of the first magnitude threatened because the jute crop was already in the markets and, as there was no money to move so prices began to fall precipitously. At that time, there was no jute industry in Pakistan, not a single jute loom or a spindle and no possibility, therefore, of utilizing any of the crops with in the country. As jute prices collapsed, foreign merchants and foreign banks stood aside to watch the process and the seriousness of the situation threatened to promote agrarian unrest. It was now very evident that the government of Pakistan could not afford to continue that the special mission to Delhi had failed, Government of Pakistan moved quickly. Two ordinances were passed immediately, one

setting up the Jute Board and other National Bank of Pakistan. The objective of the Jute Board was to reorganize and rehabilitate the jute trade by helping parties to handle it and to stabilize the market. National Bank of Pakistan was established to provide finance to suitable parties. Thus it came about that National Bank of Pakistan stood behind the jute trade and State Bank of Pakistan behind the National Bank, and government stood behind the State Bank. It was all organized so rapidly (six branches came into being at once) that any doubt that might have lurked in the minds of outsiders about Pakistans ability to tackle the situation were dispelled once and or all. Until June 1950, the Bank was engaged exclusively on jute operation. Thereafter, it was felt that it could expand its business to include other commodities as well. Bank took a big stride in 1952, when it replaced the Imperial Bank of India, as an agent of State Bank of Pakistan. Presently, there are 24 overseas branches, and 11 regional offices, 1250 Domestic branches of the National Bank of Pakistan.

1.2. An Overview:o NBP maintain its position as Pakistans Premier Bank o NBP is major business parter of government of akistan o It has special emphasis on fostering Pakistans economic growth through: Aggressive Balance lending policy o NBP also handles treasury transactions for government of Pakistan as an agent to state of Pakistan o NBP has a network of over 1100 branches locally and 15 overseas branches

1.3. Objectives:-

National bank of Pakistan is also a commercial organization a n d i t s m a i n objective is profit maximization. This is achieved in two ways:1. By increasing deposits.2. By charging interest on loans provided to the private sector and businesscommunity.These are explained as: Increase in deposits: Competition in banking is intense and every bank whether it is Pakistani, foreign,private or nationalized tries to increase its deposits by providing better facilities toits customers. By increasing its deposits a bank can extend greater amount of loan and hence achieves higher profit. NBP is also improving its facilities andservices to attract customers with higher volume of deposits. There are two mainfactors involved in increasing the deposits. These factors are improving theservices and courtesy. NBP is continuously working on these two factors toincrease its deposits. Extension of loans: The profitability of a bank largely depends on the amount given to people as loanand the type of people to whom credit is given i.e. the credit worthiness of theborrowers. This strategy has worked quite well for NBP. Deposits are collectedfrom the people and invested in different projects. NBP prefers to give loans tofinancially sound and reliable parties, after securing the collators. NBP has anextremely well organized section. The staff is adequately trained, and educatedand competent. They carry out extensive financial analysis before deciding onthe loan. Interest charged on the loans potentially contributes to higher profits. Some of the other objectives of NBP are: i. Improve customer services. ii. Quick disposal of credit cases. 9

iii. Efficient operation of the branches. iv. Better Public Relations. v. Operational and advisory services for foreign exchange accounts activities

1.4. Research Methodology:1. Primary research 2. Secondary research.

Research is the way to gather the relevant data to resolve a problem & there are commonly two basic ways to gather the information.

1. Primary research:-

Primary research is the research that an individual collects by hiself to resolve the problem. E.g: Servey, Observation, Experiments, Focus Group etc. Secondary research is the other way to gather the relevant information but it is already done previously by some other ones we just store that data from secondary research that would be suitable for us. E.g: Internet, Govt: Agencies, Libraries, Newspapers etc. . The Information that I have collected during my internship was based on primary & secondary data because I myself conducted some research tools like Survey to my Branch Manager & collected information regarding to the organization of NBP but on the mean while I also took help by getting data through Secondary research by brouchers of NBP, By Website commonly etc.

2. Secondary research:-

1.5. Purpose Of Study:-

The main purpose of studying the internship is just to seek the practical knowledge from the Workforce of NBP an Organization which is a need of my degree as well & also beneficial for me to provide me necessary information about that Organization in Future Purpsoe.

1.6.MISSION STATEMENT:To make the Bank complete and competitive with all international Standard in performing, quality of, operations, staff, financial strength. And products and services To develop a culture of excellence in every spare of activity of the bank.

VISION:To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.

CORE VALUES: Highest Standard of integrity Institutionalizing a team work and performance culture Excellence in service


Advancement of skills for tomorrows challenges Awareness of social and community responsibility Value creation for all stakeholders

GOALS :To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.

SOCIAL COMMITMENT:The Public Relation Division of NBP maintains effective rapport with the general public by communicating the policies and schemes of the bank through press and electronic media. Besides maintaining close relationship with journalists & advertising agencies, the Division also receives the visiting dignitaries and delegations from abroad. NBP believes in serving the nation and building the country strong. We are always at the forefront to support noble causes and promote the social & cultural activities in the country. The Public Relation Division of NBP sponsors various social, cultural and sports events to generate healthy activities in the society. It also organizes religious programs to uphold the religious tradition of our people. The Division represents the bank at important forums to exchange views on national & international issues with various organizations to boost the intellectual activities.



2.1.Organizational structure:Organization represents broad plans of action by which an organization intends to achieve its goals and fulfill its mission. Strategies are selected either by entire company if it is small and has only one product or for each division if a company is large and has a multiple products or units. No one organization remains stagnant in todays society. It is either growing or shrinking in numerous dimensions. There are at least four reasons why organizations change over time.

The handy work that organizing creates market for change. Personal changes Product service and method changes Improvement is sought


Organizational structure and design:-

Organizing is the function of effective behavioral relationship among persons so that may work together effectively and gain personal satisfaction in doing selected tasks under given environmental conditions for the purpose of achieving goal or objectives.

Organizational structure:-

There are at least three basic concepts associated with formal organizational structure. Division of labor departments span of control There are two types of organization structure. Vertical structure Horizontal structure. NBP sukkur is in the category of vertical structure.















This chapter presents the services and departmentalization of NBP. Services are outputsof the firm/organization, which are in intangible form & which are the backbones of anyorganization to earn profit? NBP offers the following services to the people.


Basically function of A/c opening & closing in NBP is performed under Accounts department but I am discussing it with separate heading for better understanding. Firstly all types of Accounts which can be opened in NBP has been described: TYPES OF ACCOUNTS I) II) Current account Saving account

Brief explanation of these accounts is as follows: CURRENT ACCOUNTS Current A/c is basically used to meet the daily transactions. Current account provides safety to the customers money, gives the advantage for paying debts by the convenient and safe means of sending cheques through the post thus avoiding the trouble and loss that units in PKR, Us$ GBP and DM. SAVING ACCOUNT In case of saving accounts, account holder gets profit. There is a time limit for drawing cash; customer cannot draw money before a certain time. In NBP saving a/c is used as current a/c & there is no main difference between current & saving account except profit. This account can be opened by limited company, partnership company ,club societies & associations, joint & sole proprietorship.


HOW TO OPEN AN ACCOUNT (GENERAL) When a person intend to open account. A card is filled & signed by customer. This card contain: i)- Six boxes for name. ii)- Opening date iii)-Special instructions iv)-Space for first a/c No. v)-Space for other accounts. Following points are considered by the bank in this regard. 1)- Another account holder of the bank should properly introduce the new customer. 2)- The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. 3)- A copy of identity Card is required by Bank. 4)- Against submission of the Banks prescribed application form, duly introduced in the manner provided and on supplying such document, as may be required and account may be opened. The Bank reserves to itself the right to refuse to open and account without assigning any reason. 5)- Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account. 6)- Minimum amount for opening and continued maintenance of various types of accounts is as follows: Rs. Current Saving 2000 500 US$ 2000 500

The bank reserves the right to change the above mentioned minimum balance requirement at any time without any notice. PROCEDURE TO OPEN AN ACCOUNT When a customer wants to open an account, the bank officer gives application form to him. All information, which is necessary to be known by the bank, is requirements of the application form. From also requires the essential documents to be attached by the customer. Following persons can open an account: 1)-Sole proprietors 2)-Private accounts (individual A/Cs) 18

3)-Joint account 4)-Limited Company 5)-Partnership Company 6)-Club, Society & Association Basically following information is required:

Name Address Telephone no. Currency of account Nature of Business Residential status Special instruction regarding the account Signature of the applicant

DOCUMENTS TO BE ATTACHED Documents required to be attached are different for different categories. 1)- SOLE PROPRIETORS ACCOUNT They have to submit their business registration certificate number. 2)- PRIVATE ACCOUNTS For individual or private accounts following documents & information has to be given: Name Residence address Mail address Foreign address office address & office ph. No. position to title passport or identification No/ matrimonial status Date and place of birth Nationality Residence visa No. Name and address of other Banks in Pakistan


3)- JOINT ACCOUNT If some one wants to open joint account the following information is needed: Full name - Address - Specimen of signatures of the joint account holders 4)- JOINT COMPANY In this case following information & documents are required: Certified true copy of the Memorandum and Articles of Association of the company. Certified true copy of the resolution of the board of directors / managing committee / governing body regarding conduct of the account. Certified list containing names and signatures of the directors / office bearers. Certified true copy of the certificate of incorporation or registration. Certified true copy of the certificate of commencement of business ( in case of public limited companies). I.D. Card copy of each director Original is also enclosed for inspection and return List of persons authorized to operate on the account.

5)- PARTNERSHIP COMPANY ACCOUNT Documents required in this case are as follows: Full Names Address Specimen of signatures of the partners Certified true copy of partnership deed

6)- SOCIETIES / CLUBS AND ASSOCIATION ACCOUNT Documents required in this case are as follows: Copy of the rules certified by the president and the secretary. Certified copy of a resolution of the committee and the specimen signatures of the persons authorized to sign.


OTHER FORMALITIES The majority of the new customers are introduced either by an existing customer or by bank staff. When the concerned officer is satisfied then he opens the account and gives an account number that will be used in all communications with the bank in regard to the account and when making deposits and withdrawal. Bank has a right not to open and account without assigning any reason or to close the account, if it is not operated in a satisfactory manner by the head office instructions. So, opening questionnaire for companies & business accounts includes: Company name Address Mail address Telephone, Cable & Telex Nature of Company Business registration certificate number Date of incorporation Nature of Business Names of main managers & director

Names & address of parent companies Names & address of other banks And, introducers declaration
And opening questionnaire for private accounts includes: Name Residence address Mail address Residence telephones No. Foreign address Office address Office Telephone No. Position or Title Passport or identification cards No. Matrimonial status 21

Nationality Residence Visa No. Name & address of other banks in Pakistan Name & address of other banks in abroad & Their account No. & Introducers declaration ISSUANCE OF CHEQUE BOOK When a customer opens an account with the bank, he is provided with cheque book for withdrawals of account. However, the first cheque book is given to the customer only when all the required documents are checked. A cheque book contains twenty five, fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of the new cheque book. This slip is duly filled and singed by the customer. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank. Along with the signature, person should also write his full name & address. Usually only one cheque book is issued at a time, however big concerns who need a number of cheque books at a time, may ask the bank to stock as number of cheque books in their name and to point their name on these cheque books. Bank debits the clients account for excise duty of Rs.2.50/- per cheque and keeps the cheque book ready for the customer, as on his advice. The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register. THE REQUISITES OF A CHEQUE There is no prescribed form of words or design of a cheque but in order to fulfil the requirements the cheque must have the following: It must be in writing It must contain an order to pay and addressed a specified bank. The order must be unconditional The order must direct to pay on demand The sum ordered to be paid must be certain. 22

The payment should be ordered to be paid to a certain person or to his order or the bearer.

CHECKING AND PAYMENT OF CHEQUES It is the primary function of the bank to repay the money received from his customers account usually by honouring his cheques. It is a contractual obligation of a banker to honour his customers cheque, if he has checked the following on a cheque: Name of the Bank & branch Amount in figure and words Signature of the Drawer (verification) Posting mark by the computer operator Cancellation by the authorized Cheque should not be damaged Funds must be sufficiently available No legal bar prohibiting payment. STOPPING THE PAYMENT OF CASH ON PRESENTATION OF CHEQUE The payment of cheque is stopped dishonored on the following grounds: Effects not yet cleared ,then request to present again. Irregularity endorsed Drawers signatures differ Payees endorsement requires banks guarantee Alteration requires full signatures Cheque is post dated Cheque is without date Amount in figures and word differs Crossed cheque must be presented through the bank Payment stopped by the drawer. HOW TO CLOSE AN ACCOUNT The account can be closed by the customer. The customer is required to submit and application for closing the account. Then the account is closed out and his balance is paid to him. Cheque book is returned back to bank and the officer cancel and the remaining cheques in cheque book. 23





Product of a bank include all those services, which a customer can use effectively in has general and business live.


NBP Main Branch, Lahore offer a wide range of banking services to public and private sector corporations, partnership, individuals and others. However, there are some basic services which NBP at present offered to his customers include: Receipts f customer deposits. Collection of his cheques drawn on other banks. Making payments through cheques drawn on it. Making remittances Foreign trade services.

At present NBP offering the following financial services and investments options to customers. 1- Deposits 2- Advances 3- Foreign Services DEPOSITS To receive deposits is a basic function of all commercial banks. Commercial banks do not receive these deposits for save keeping purpose only. But they accept deposits as debts. When a bank receives a deposit from a customer becomes the creditor and the bank a debtor. When the bank receives the amount of deposit as a debtor, it becomes the owner of it. It may, therefore, use it as it deems appropriate. But there is an implicit agreement that the amount owned would be paid back by the bank to depositor n demand or often a specified time. Deposits are the lifeblood of a bank and their classification is based on the duration and purpose for which the deposits are to be kept at the bank before the depositors can withdraw them. At present NBP accepts deposits in bother local & foreign currencies and provides a variety of accounts where these sums are put in at the desire of the customers. LOCAL CURRENCY DEPOSITS In local currency (PkR) the following type of accounts are available at the bank 1-Cruuent Account 2-Saving A/c 3-Short term deposits 4-Fixed deposit receipts A brief explanation of the above stated accounts is given below: CURRENT ACCOUNT These are payable to the customer whenever they are demanded. The bank treats these deposits as current liabilities. No profit is given on these accounts and there is no restriction of minimum balance to be kept in these accounts.


SAVING ACCOUNT In such types of account, the depositors are normally allowed to withdraw a limited amount of money only twice a week. FIXED DEPOSIT RECEIPTS In these accounts the amounts are deposited for fixed period which may be 1 month, 3 months,6 months and 1 year. SHORT TERM DEPOSITS In these accounts the amounts are deposited for fixed period but shorter than that of fixed deposit receipts, which may be 7 days ,and 30 days. FOREIGN CURRENCY DEPOSITS At present NBP Main Branch accepts US$, GBR, YEN and DM in shape of foreign currency deposits. For these foreign currency deposits bank has offered the following accounts. 1-Foreign Currency Accounts. 2-Foreign Currency Saving Accounts. A brief description of above stated accounts is given under. i- FOREIGN CURRENCY CURRENT ACCOUNTS In these accounts depositors can deposit a sum of money in any of the above mentioned currencies. The depositor can also withdraw any amount subject to he availability of the amount. No profit is given on these accounts and no restriction as per the minimum balance required. ii-FOREIGN CURRENCY SAVING ACCOUNTS NBP pays the interest that is earned on the sums available in the accounts by making investments. ADVANCES Advances are the major source of earning income for commercial banks; it is the interest charged on the money lend to customers. Bank advances to customers are made either by way of loan or by overdraft on current account. 27

At present NBP provides short term loans as well as long term loans. FOREIGN SERVICES Following is the list of major foreign services provided by NBP to its customers :e .g: a- Documentary Letter of Credit b- Bills of Negotiation c- Foreign Services d- Bills for collection A brief description on of above stated services is given under; DOCUMENTARY LETTER OF CREDIT A documentary letter of credit may be defined as an authority issued by the opening bank on behalf of the importer in favor of the exporter with the stipulation that the drafts drawn there under will be duly honored provided that the terms and conditions as mentioned there in are duly compiled with . With respect to the documentary credit the following types of documentary letter of credit are offered by NBP; Revocable LC Irrevocable LC Confirmed LC Transferable LC Back to back LC Stand by LC Sight LC Usance LC

BILLS FOR NEGOTIATION In some cases the exporter is not willing to wait for the proceeds of collection to be remitted. In such cases exporter requests the Bank to negotiate the bills i.e. he sends the documents to Bank. In this case Bank examines the documents and arranges them with the requirements mentioned in the Letter of Credit. When bank satisfied it pays to the exporter. Now Bank has the right to collect the proceeds on his own behalf from the importers Bank


NBP performs the functions of both the exporters and the importers Bank as per its customers status. BILLS FOR COLLECTION The exporters and bank receives the documents from the exporter, examines and dispatches them to the importer,s bank. The importer, s bank confirms these, as per the requirements stated in the letter of credit. If founds correct gets the amount from the customer, advice the exporter ,s bank about the receipt of payment and in the end makes the payment to the exporters bank. REMITTANCE It includes local and foreign currency fund transfer. NBP also provide the facility to its customers in remitting funds from one place to another place. The remittance (between two countries). At present bank provides the following instrument that facilitates the transfer of funds. TT ( telegraphic Transfer) DD (Demand Draft) PO (Pay Order) These will be discussed in detail in the remittance department. UNMATCHED BANKING FACILITIES Deposit security, Guaranteed by Government of Pakistan Highest rates of return to attract the savings. Lowest rates on exports and other borrowings. Largest contribution towards Government and Semi- Government Requirements. Agent of the State Bank Of Pakistan handling Treasury Functions, receipts of Taxes & other Revenues. Handling of salaries and pensions of federal/ provincial employees and defence personnel. Utility Bills collections. Haj arrangements. Sale and encashment of Prize Bonds through its 266 authorized branches. Sale and encashment of Defence Savings and Special Savings Certificates. Safe Deposit Lockers for customers. Rational Human Resource Management.


CASH LINK NBP ATM SERVICES FOR YOUR CONVENIENCE SERVICES AVAILABLE ON NBP ATMS Cash withdrawal according to your cyclic limit. Transfer of funds between PLS Savings Account and Current Account of the same customer through the same ATM Card. Account Balance Inquiry. Instant mini- statement of account listing the last 15 transactions in account. Request for a new Cheque book which might be collected by the customer from the branch. HOW MUCH CASH CAN BE WITHDRAWN There is a 24 hours cyclic cash withdrawal limit imposed on all ATM cards. Withdrawal limits depend on the type of customers.

PIN (PERSONAL IDENTIFICATION NUMBER) MAILER A pin mailer issued to the ATM card holders carries the PIN number in a sealed envelope. Card holder is required to keep the PIN number in a safe place as all the operation on the ATM are carried out through the same.


Introduction: This chapter consisted on different analysis of NBP. In this chapter I willanalyze NBP through different perspectives, I will conduct different analysisto realize the actual financial position of NBP.

SWOT ANALYSIS SWOT Analysis is a strategic planning method used to evaluate the Strengths,Weaknesses, Opportunities, and Threats involved in a project or in a businessventure. It involves specifying the objective of the business venture or projectand identifying the internal and external factors that are favorable andunfavorable to achieving that objective.If SWOT analysis does not start withdefining a desired end state or objective, it runs the risk of being useless. ASWOT analysis may be incorporated into the strategic planning model. Anexample of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, includingSWOT and SCAN analysis, has been the subject of much research. Strengths: Attributes of the organization that is helpful to achieving the objective. Weaknesses: Attributes of the organization that is harmful to achieving the objective. Opportunities: External conditions that is helpful to achieving the objective. Threats: External conditions which could do damage to the business's performance. Strengths: Advance salary product: It exists in the list of top 10 banks in the ASIA. It has the highest profit among the largest banks of the ASIA. Its paid-up capital is very high Very less uncertainty because of a Govt. bank High confidence due to higher capital investment. LC (letter of credit) is acceptable all over the world. Chest branches can supply cash on the behalf of state bank. Chest loans can be used for limited time Stake holder is Govt. of Pakistan. It holds the Govt. treasury. The biggest customer of NBP is Govt. of Pakistan.


Work as corresponding of ASKARI bank Provide High packages to employees. Provide high staff benefits. Recruitment occurs after every year. MTOs selection is planned till 2010.

Weaknesses: The Major problem with NBP is its image as it is a Govt. bank so the vision of the customer is not positive about it. People think it will not provide them satisfactory services. In many branches management is not up to date.

In many branches management is not up to date. In small areas branches employees have less education. Award and promotion policies are not implemented in all branches. There is no concept of job rotation

Employees have low coordination level among each other. Opportunities:

Advance salary for employees Employee benefits Pensions Award for employee performance Promotions

Corporate planning learning. Threats:


Turn out of employee Job security and Strugglers At a time do no. of jobs due to competitor.

NBP have to do those jobs which have no loss and no profit because of their competition

Customer dissatisfaction Slow actions on complains Political environment.


Internship Report on NBP, Karianwala Branch Gujrat 55

It is very important that an organization considers its environment beforebeginning the marketing process. In fact, environmental analysis should becontinuous and feed all aspects of planning. The organization's marketingenvironment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces,Sociocultural forces, and Technological forces. These are known asPESTfactors. Political:

Privatization policy and deregulation. Impact of subsidized credit affecting and NCBs. Employment practices, Unions, Associations. Political Interference and harassment.

Incidents of high taxation on banking industry. Economical:

Constraints in mobilization of public savings because of inflation. Staff cost. Operating cost.

Bad debts Social & Cultural:

Internship Report on NBP, Karianwala Branch Gujrat 56


Inadequate human resources.

At the end of research, I found that the following areas need consideration: Heavy Administration Costs.. Very Fewer Job Openings. Low Interest rates due to State Bank interference.

Over burden of employees observed during research. Traditional methods of Banking. Difficulties in Automation of (ATM) machines.


The Administration costs is too difficult to ignore for profitable banking Operations, so the Old Vouchering system should be replaced with Computers to save the time & cost (money) as well.. The Human Resource Department needs to analyze each and every job through the process of job analysis. There should be some job opening annually or semi annually for fresh candidates It will help HBL to brainstorm new ideas to implement. The interest rates should be grown up by State bank by which the Customes can easily be motivate to invest their amount in HBL.. There is a need of coordination & mutual confidence between the staff & management at the time of decision Making. The Management of HBL should Empowered the Employees by which they can give their best to Achieve the goal of Organization There is a need of educated staff members and to create spirit of competent with other commercial banks. The Management of HBL should Hire The efficient candidates who really know to operate the technology to save the time of the organization.There must be some training program for employees to equip them and warm from latest information especially to the staff of branches. There should be easy access of online branches in Rural areas because there is a need & demand of Online banking to enjoy the Competitive Advantage.


Management Development Institute Karachis Text Book (Basic of Banking

Cours / Siddique Akbar Magsi (HR Manager of HBL). HBL staff members. A review from Adbul Hammed Cheema (Money & Banking). A review from the William Zigkhmand (Business Research Method).