Internship Report on NBP

National bank of Pakistan

INTERNSHIP REPORT

ON

National Bank of Pakistan

Internship Report submitted to the Department of Faculty of Management Science

BY

UNIVERSITY` OF Gujrat Date of Submission 16-09-2013

Name of Program Coordinator _________________

Signature of Program Coordinator _________________

University Of Gujrat Page 1


Acknowledgement

First of all, I am thankful to the most Merciful Allah who gave me the capability to fulfill

all the tasks efficiently.

I would like to thank Faiz Fareed (Credit Officer), for giving me opportunity to join NBP

and guiding me throughout my internship period. And thanks to my friends for helping

me throughout this period. And special thanks to all the staff members of all

departments without their help and guidance this report cannot be completed. All of

them were very supporting and encouraging.

I am thankful to all the staff of NBP for their support and guidance. Last but not least I

would like to thank my mother for her affection.



Table of Contents Page No.

Title Page 01

Acknowledgement 02

1. Executive Summary 10

Main Body of Report 12

2. Introduction of NBP 13

2.1 Scope of Study 13

2.2 Aim of the Study 13

2.3 Objectives of the Study 14

3. Overview of the Organization

3.1 Brief History of the Organization 14

3.2 Nature of the Organization 16

3.3 Business Volume 18

3.4 Reward Honors & Success stories during last 5 years 18

3.5 Products of NBP 19

3.5.1 NBP Premium Amdani 19

3.5.2 NBP Karobar (Mera Apna Karobar) 20

3.5.3 NBP Saiban 20

3.5.4 NBP Advance Salary 21

3.5.5 NBP Cash n Gold 21



3.5.6 NBP Kisan Dost 22

3.5.7 NBP Cash Card 22

3.5.8 NBP Investor Advantages 23

3.5.9 NBP Pak Remit 23

3.6 Services of NBP 24

3.6.1 International Banking 24

3.6.2 Demand Drafts 25

3.6.3 Mail Transfers 25

3.6.4 Pay Order 25

3.6.5 Traveler’s Cheques 25

3.6.5.1 Validity 25

3.6.5.2 Availability 25

3.6.5.3 Encashment 25

3.6.5.4 Limitation 26

3.6.5.5 Safety 26

3.7 PEST Analysis 26

3.7.1 Political 26

3.7.2 Economical 26

3.7.3 Social & Cultural 27

3.7.4 Technological 27



3.8 Contribution of Organization & Economic Development 27

4. Organizational Structure 28

4.1 Organizational Hierarchy Chart of NBP 28

Designation of Higher Level Office

4.2 Number of Employees 29

4.3 Main Offices 30

4.3.1 Head Office of National Bank of Pakistan 30

4.3.2 Domestic Branches 31

4.3.3 Overseas Branches 31

4.4 Introduction of Departments of NBP 32

4.4.1 Cash Department 32

4.4.2 Account Opening Department 32

4.4.3 Clearing Department 33

4.4.4 Advances Department 33

4.4.5 Remittances Department 34

4.4.6 Pension Disbursement Department 34

4.4.7 Computer Department 34

4.4.7.1 Online Branches 35

4.4.7.2 Evening Data Receiving Center 35

4.4.7.3 Data Entry Department 35

4.4.8 Deposit Department 35



4.4.9 Accounts Department 36

4.5 Comments on the Organizational Structure 37

Part-II 38

5. Internee Work 39

5.1 Brief Introduction of the Branch 39

5.2 Details of Supervisors 40

5.3 Weekly Time Table 40

5.4 Detailed Description of the Departments in which You Worked 42

5.4.1 Account Opening Department 42

5.4.2 Remittances Department 43

5.4.3 Kinds of Remittances 44

5.4.4 Clearing Department 44

5.4.5 Types of Clearing 44

5.5 Description of the Operations Performed in Department 45

5.5.1 Requirements for A/c Opening & Closing of A/c 45

5.5.1.1 Terms and Conditions 45

5.5.1.1.1 Introducer 45

5.5.1.1.2 Customer 45

5.5.1.2 Procedure of Account Opening 45

5.5.1.3 Account Opening Form 46

5.5.1.4 Specimen Signature Card 46

5.5.1.5 Next of Kin 46

5.5.1.6 Letter of Thanks 46



5.5.1.7 Issuance of Cheju Book 46

5.5.2 Closing of Account 47

5.5.2.1 Account holder Owen request 47

5.5.2.2 Functions of Clearing Department 47

5.5.2.3 Documentation 48

5.5.3 Western Union Department 49

5.6 Detail Description of the Tasks Assigned 49

5.7 Internship Learning Summary 52

5.7.1 What skills and qualifications you think that you have gained from the

internship 53

5.7.2 What kind of responsibilities you have undertaken during the internship

period? 53

5.7.3 How do you think the internship activities that you carried out are

correlated with your classroom knowledge? 54

5.7.4 How do you think the internship activities that you carried out are

correlated with your classroom knowledge? 54

5.7.4.1 Correlation between the Internship 55

5.7.4.2 Activities and Class Room Knowledge 55

6. Conclusions of the report 55

6.1 A summary of key conclusions derived

from the internship experience 55

6.2 General Observations about NBP 56

6.3 SWOT Analysis 56

6.3.1 Strengths 57

6.3.1.1 National Institutions 57



6.3.1.2 Organization Culture 57

6.3.1.3 Strategic TOP Management 57

6.3.1.4 Industrial Policies 57

6.3.1.5 Lenient Policy with the Clients 58

6.3.2 Weaknesses 58

6.3.2.1 Less Attention to the Rural Development 58

6.3.2.2 Poor Advertisement 58

6.3.2.3 Poor Network 58

6.3.2.4 Political Interference 59

6.3.3 Opportunities 59

6.3.3.1 Sponsor the IT Based Projects 59

6.3.3.2Goodwill and Better Image 59

6.3.3.3 Growth in the Industrial Sector 59

6.3.4 Threats 60

6.3.4.1 Political Influence and Instability 60

6.3.4.2 Sick Projects 60

6.3.4.3 Lack of Modern Banking Techniques 60

7. Recommendation and Suggestions 61

7.1 Professional Training 61

7.2 Delegation of Authority 61

7.3 Performance Appraisal 61



7.4 To Over Come Problem of Space and Furniture 62

7.5 Need Qualified Staff 62

7.6 Link with the Head Quarter 62

7.7 Clean Loans 62

7.8 Decreasing Administrative Expenses 63

7.9 Technological Advancement 63

7.10 Improper Distribution of Work 63

7.11 Marketing Policy 64

7.12 Avoid Political interference 64

7.13 Recommendations with their Feasibility 64

8. References 66

1. Executive Summary

Six weeks internship, in a well reputed organization, is part of my academic requirement

for MBA discipline. The internship is to serve the purpose of experience the student with

the practical knowledge of the field. And see how the practical work is done.

I choose NBP for completing my internship program. The purpose of this report is to

explain my learning during my internship.



In start of the report I gave introduction to report, history and organization. I also

included company’s mission, objective, values and field of activities in report to get early

understanding.

This particular internship report contains two parts or sections. The introduction of

performance history and the Institute expresses, pest analysis, SWOT analysis and

many other things are included in the report. There are a few tips and

recommendations. Banking sector and its role towards economic development is now a

region of a major importance. National Bank of Pakistan is one of the major banks.

National Bank of Pakistan was established through November 9, 1949 Ordinance.

Initially the purpose of bank was lending in order to promote agriculture. In Karachi and

Lahore offices opened on December 1949. Now NBP has branches across the country.

Banks are performing many functions to facilitate their customer such as taking up of

money, lending or advancing of money upon security, discounting, buying, selling,

collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts,

bills of lading, railway receipts, debentures, certificates, Issuing of traveler's cheques

and circular notes, underwriting and dealing in stock, shares, debentures, bonds,

obligations, securities and investment of all kinds or other forms of securities on behalf

of their customers.

Apart from having a vast branch network, Bank is at the forefront in the acquisition and

application of new technologies in every aspect of its banking facilities. It has acquired

leased telephone lines for on-line banking. The Bank has 130 online branches.

Since its creation National Bank of Pakistan is trying to provide every possible facility to

nation’s socio-economic development. NBP also undertake government treasury

operations; act as a contributory agent of government and semi government. NBP

provides a wide range of services, such as collection of taxes and deliveries of salaries,

pensions to public sector employees, credit creation, lending to the business sector and

public to develop and expand their business and in this way bank is playing a vital role

in economic development.NBP also offers lowest rates exports and other borrowings.



NBP is the only bank of the country, which has been awarded “The Best Domestic

Bank” repeatedly in 2001 and 2002 by the renowned journal “The Banker UK”. The

National Bank of Pakistan is also the first bank which has started a “Foreign Exchange

Company” in order to facilitate the general masses, regularize the inflows of foreign

money and control the undesirable blackmailing of private foreign exchange companies

in the country. In short, NBP occupies a distinctive position in development of the

financial sector of Pakistan.



Main Body of

Report

Part I



2. Introduction of NBP

National Bank of Pakistan was established in Pakistan under the National Bank of

Pakistan Ordinance, 1949. It is listed on Karachi, Lahore and Islamabad stock

exchanges. Its head office is at I.I. Chundrigar Road, Karachi. The bank is involved in

providing commercial banking and related services in Pakistan and overseas. The bank

is acting as an agent of State Bank of Pakistan (SBP). It also handles treasury

transactions for the Government of Pakistan (GOP). NBP has 1,266 branches in

Pakistan and 23 overseas branches.

2.1 Scope of Study:

I have completed my (6 Week) internship in National Bank of Pakistan. During my

internship as an internee I have learned a lot of things that has increased my knowledge

about this field but the main focus were upon General banking that includes clearing,

deposit, advances and remittance etc. I have learned the importance of banking sector

in the country’s economy as it is extremely useful for trade, industries, business and as

well as for the general public. In fact I have perceived that banking sector is just like the

life blood of country’s economy. As an internee I have learned a lot of useful things that

will play a very vital role in my future professional life.

2.2 Aim of the Study:

To observe, analyze and interpret the relevant data competently and in a useful

manner.

To work practically in an organization.

To develop interpersonal communication.



To get familiarity with the organizational environment.

To get familiarity with the management work of analyzes the difference between

bookish knowledge and practical work.

2.3 Objectives of the Study:

To conduct thorough study of National Bank of Pakistan.

To understand the various operations and to equip with practical knowledge of the

National bank of Pakistan.

To get some field experience about job.

3. Overview of the Organization

3.1 Brief History of the Organization:

NBP was established with Ordinance No. XIX of November 9. 1949. British Govt.

devalued its currency in September 1949; India devalued its rupee, but not Pakistan. It

led to a crisis in trade between the two countries and India refused to lift the Pakistan

Jute. To solve this problem, namely NBP jute exports are determined by a regulation of

the GOP.

National Bank of Pakistan maintains its position as a leading bank in Pakistan

committed to higher standards of performance to set. It is the main partner for the

Government of Pakistan with special emphasis on promoting the economic growth of

Pakistan, through an aggressive and balanced lending policies, technology-driven

products and services offered through its large network of branches locally,

internationally and representative offices.



National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its

balance sheet size surpasses that of any of the other banks operating locally. It has

reiterated its role and has moved from a public organization in a modern commercial

bank. The Bank's services are available to individuals, corporations and government.

Although still to act as trustee of public funds and as the agent to the State Bank of

Pakistan (SBP where not present) has diversified its portfolio and is today a big lead

player in the debt stock, corporate investment banking, retail and consumer banking,

agricultural finance, treasury services and shows increasing interest in the promotion

and development of the country small and medium enterprises while fulfilling its social

responsibility as a corporate citizen.

National Bank of Pakistan has an extensive branch network with 1,250 branches in

Pakistan and operates in major business centers in foreign countries. The Bank has

offices in Beijing, Tashkent, Chicago and Toronto. The agency has agreements with

more than 3000 correspondent banks worldwide. Its subsidiaries Taurus Securities Ltd.,

NBP Exchange Company Limited, NBP Capital Ltd., NBP Modaraba Management

Company Ltd. and CJSC Bank, Almaty, Kazakhstan, joint ventures between the Bank,

United National Bank (UK), First Investment Bank and NAFA, an Asset Management

Company (a joint venture with NIB Bank and Fullerton Fund Management in Singapore.

Bank's financial performance is remarkable. In 2006, total assets estimated at Rs635

billion, while deposits have grown to almost Rs502 billion. Profit before tax increased to

Rs26 billion. Earnings per share rose to Rs24.01 in 2006. The profit increase was

achieved through strong growth in core banking income. Interest income increased by

one billion RS10 by growth in the loan portfolio and an increase in spreads.

Advances increased by Rs48 billion to Rs316 billion. The Bank maintains a healthy loan

portfolio diverse in nature to the risk of credit concentration to counteract. It ranges from

providing credit to the UN under-banked market segment NBP Karobar for small and

medium enterprises, agriculture loans to large corporate customers.



The bank has also played an important role in financing the country increased trade,

which has spent over the years as a diversification took place.

The field is de-layered to improve customer service and faster decision making. As a

result of this de-layering zones were eliminated and the number of regions has

increased. At regional level organizational hierarchy was restructured and the

operational and commercial activities are completely separate. This separation will

improve communication, decision making and promoting teamwork.

For the third consecutive year, the Bank is recognized as the best bank in Pakistan for

the year 2004 by the prestigious magazine "The Banker" UK (a subsidiary of the

Financial Times Group).

3.2 Nature of the Organization:

A bank is a financial institution which deals with money and credit. It accepts deposits

from individuals, firms, and companies at a lower rate of interest and gives at a higher

rate of interest to those who need money. The difference between the rate of interest at

which it borrows and lends is the profit of the bank. A bank, thus, is a profit earning

institute. Any bank that performs this functioning is called the commercial bank.

The nature of responsibilities of the Bank is different and unique from other

banks/financial institutions. The bank also handles treasury transactions for the

Government of Pakistan as an agent to the State Bank of Pakistan for handling

provincial/Federal Government receipts and payments on their behalf. The National

Bank of Pakistan has also played an important role in financing the country’s growing

trade, which has expanded through the years as diversification took place.

The bank is providing all banking services of mercantile and commercial banking

permissible in the country, which includes:



Accepting of deposits of money on current, fixed, saving, term deposit and profit and

loss sharing accounts.

Providing the lockers for the secret document and ornaments of the customers

Purchasing the securities

Providing the agency services for its clients

Transfer the funds for customer from one place to another place

Borrowing money and arranging finance from other banks.

Advancing and lending money to its clients.

Financing of projects, including technical assistance, project appraisal through long

term/ short term loans, term finance and musharika certificates, etc.

Buying, selling, dealing, including entering into forward contracts of foreign exchange.

Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.

Receiving of bonds, valuables, etc. for safe custody.

Carrying on agency business for any description other than managing agent, on

behalf of clients including Government and local authorities.

Generating, undertaking, promoting, etc. of issue of shares and, bonds etc.

Transacting guarantee and indemnity business.

Undertaking and executing trusts.

Joint venturing with foreign dealers, agents and companies for its representation

abroad.

Participating in “World Bank” and “Asian Development Bank’s” lines of credit.

Providing personalized Hajj services to intending Hajjis.

3.3 Business Volume:

Business volume of National Bank of Pakistan is given as follows:



Year Total Assets Advances Investments Share

holder’s

Equity

2008 635,133 316,110 139,947 53,045

2009 762,194 340,319 211,146 69,271

2010 817,758 412,987 170,822 81,367

2011 944,583 475,243 217,643 94,142

2012 1,035,025 477,507 301,324 103,762

3.4 Reward Honors & Success stories during last 5 Years:

Global Finance Intelligence magazine "The Banker" published by the prestigious

Financial Times Group, London in its global survey suggested a merit list of top 1000

banks based on the best profit on capital, assets and return on assets ratios. About the

best returns of capital (percentage) scale, the National Bank of Pakistan was rated as

the highest in Asia and eighth in the world. This is the first time that a Pakistani bank's

top position in the world was.

In 2011 NBP is awarded by the Global Finance Magazine with the award of “Best

Emerging Markets Bank 2011”.



In 2010 bank was awarded by the “The Banker” magazine owned by the Financial

Times Group, London with the award of “Bank of the Year”.

In 2010 the bank was awarded by the Federation of Pakistan Chambers of

Commerce and Industry with the award of “President of Pakistan Trophy” and “Prime

Minister of Pakistan Trophy”.

In 2008 NBP is awarded by the “The Banker” magazine owned by the Financial

Times Group, London with the award of “Bank of the Year”.

In 2008 the bank is awarded by the world’s leading financial journal “Global Finance”

with the award of “World’s Best Foreign Exchange Bank 2008”.

In 2007 the bank was awarded by “Banker Magazine” with the award of Best Return

on Capital for 2006 amongst all Banks in Asia.

In 2006 bank was announced by World’s leading financial journal, “Global Finance”

with the award of Best Emerging Market Bank from Pakistan.

3.5 Products of NBP

3.5.1 NBP Premium Amdani

Monthly Income Scheme

Earn up to 11% p.a.

Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5

years

Free Demand Draft, Pay Order and Cheque Book

Convenience of NBP online Aasan Banking (for online banking customers)

Free NBP Cash Card (ATM+Debit)

Running finance facility up to 90%



3.5.2 NBP Karobar (Mera Apna Karobar)

Minimum down payment, 10% of asset price (5% for PCO & Telecaster)

Tenure 1 to 5 years (for PCO 2 years)

Grace period 3 months

Maximum loan amount Rs. 200,000/-

Age 18-45 years

Mark-up (variable) 1 year KIBOR + 2.00% p.a.

The customer will pay markup @ 6% p.a., rest will be borne by GOP

Life & disability insurance paid by GOP

subject to the availability of subsidy from GOP

3.5.3 NBP Saiban

The scheme was launched at a function in Karachi presided over by Mr. Shaukat Aziz,

Pakistan's Finance Minister.NBP Saibaan is the most affordable House Financing

Scheme in which a customer can avail now and repay the loan over 3 to 20 years

period.

Finance is available for home purchase, home construction and home improvement.

Period of repayment ranges between 3-20 years.

Loans available up to a maximum of Rs.10 million.

Mark-up choices available. Rate ranges between 7.5% – 9.75%.


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


Minimum approval and disbursement timing.

3.5.4 NBP Advance Salary

10 month salaries in advance (certain conditions apply).

Minimum documentation.

Repayable in 5 years.

No processing charges; no collaterals, no guarantees, no insurance.

Mark-up charged at 11% per annum on reducing

3.5.5 NBP Cash n Gold

Facility of Rs.5000 against 10 Gms of gold.

Mark-up 15.5% per annum.

No maximum limit of cash.

Repayable after one year.

Roll over facility.

No penalty for early repayment.


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

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


3.5.6 NBP Kisan Dost:

Loans available to farmers for production, development, purchase of tractors, for the

installation of wells, purchase of agricultural equipment, micro-loans for go down

building, construction of fish ponds, livestock, the milk, for cold storage, bio-gas plants,

etc

Mark-up 11% per annum.

Loans available at the farmer’s doorsteps.

Agricultural experts to guide farmers.

Loans available against agricultural passbooks, gold ornaments and paper security.

3.5.7 NBP Cash Card:-

ATM + Debit Card

• Use it as an ATM in any of the ATM’s in Pakistan

• Use it as Debit Card in any of the outlets with ORIX POS machine

• Cash withdrawal up to Rs. 20,000/- per day

• Account Balance Enquiry

• Mini Statement (Only at NBP ATM)

• PIN Change facility (Only at NBP ATM).

3.5.8 NBP Investor Advantage


http://www.nbp.com.pk/KisanDost/Index.aspx


Financing facility for stock investors

• Comfortable environment for trading

• No security requirement, except for the customer’s equity

• Customer’s equity freely available for investment

• Equity acceptable in cash or approved shares.

3.5.9 NBP Pak Remit

Pakremit is an internet based Home Remittance Service. This service is available to

U.S. residents for sending money to their families and friends in Pakistan. One must

have a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in

order to remit funds through this channel. Remitters in USA can log on to our user

friendly website, www.pakremit.com and easily remit funds to Pakistan from the comfort

of their homes, in a matter of minutes. The service is fully secure with advance

encryption application and is available for use 24 hours a day, 7 days a week. Fees and

exchange rate have been set at competitive levels and the remitters have the ability to

track delivery of funds as well.

Process:-



1. Remitters log on to www.pakremit.com and after completing the registration

process, are able to remit funds. The whole process takes a few minutes.

2. Funds in Pak Rupees can be sent to beneficiaries, having an account with any

bank in Pakistan, including NBP. While funds are credited directly to beneficiaries

maintaining accounts with NBP, a pay order or demand draft is couriered to other

banks for their customers. Pay order or demand draft can also be couriered

directly to the beneficiary’s office or home, if requested by the remitter. Funds in

US Dollars can be sent only to a Beneficiary maintaining a US Dollar account

with one of NBP’s Foreign Exchange Branches.

3.6 Services of NBP:

3.6.1 International Banking:

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

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

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

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

To effectively manage NBP's exposure to foreign and domestic correspondence

Manage the monetary aspect of NBP's relationship with the correspondents to support

trade, treasury and other key business areas, thereby contributing to the bank's

profitability

3.6.2 Demand Drafts:

If you are looking for a safe, speedy and reliable way to transfer money, you can now

purchase NBP's Demand Drafts at very reasonable rates. Any person whether an

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

3.6.3 Mail Transfers:



Move your money safely and quickly using NBP Mail Transfer service. And we also

offer the most competitive rates in the market.

3.6.4 Pay Order:

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

orders are a secure and easy way to move your money from one place to another. And,

as usual, our charges for this service are extremely competitive.

3.6.5 Traveler’s Cheque:

Negotiability:

Pak Rupees Traveler's Cheques are a negotiable instrument

3.6.5.1 Validity:

There is no restriction on the period of validity

3.6.5.2 Availability:

At 700 branches of NBP all over the country

3.6.5.3 Encashment:

At all 400 branches of NBP

3.6.5.4 Limitation:

No limit on purchase

3.6.5.5 Safety:

NBP Traveler's Cheques are the safest way to carry our money

3.7 PEST Analysis:

It is very important that an organization considers its environment before beginning the

marketing process. The organization’s environment consists 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, Socio-

cultural forces, and Technological forces. These are known as PEST factors.

3.7.1 Political

Privatization policy and deregulation.

Impact of subsidized credit affecting and NCB’s.

Employment practices, Unions, Associations.

Political Interference and harassment.

Incidents of high taxation on banking industry.

3.7.2 Economical

Constraints in mobilization of public savings because of inflation.

Staff cost.

Operating cost.

Bad debts

3.7.3 Social & Cultural

Inadequate human resources

Cultural strain to savings

Defaulter’s lobby

Declining education and work ethics

Inadequate accountability

Adequate empowerment

3.7.4 Technological



Inadequate communication infrastructure

Inadequate computer facilities

Inadequate IT training

3.8 Contribution of Organization towards Economic Development:

NBP plays an important role for the Pakistani economy by reducing the introduction of

various programs and schemes for the welfare of society. Its contribution to the

development of small and medium businesses is considerable. It has a wide range of

consumer products, to improve business and cater to different segments of society.

Some schemes are specifically designed for low to middle income segments of the

population.

These include Karobar NBP, NBP Advance Salary, Saiban NBP, NBP Kisan Dost, and

NBP Cash n Gold. It has implemented special credit programs and small agricultural

financing, business and industry, administrator Qarz-e-Hasna loans to students,

separate rules for the unemployed, the public transport system.

National Bank of Pakistan's profitability has earned a place among the top ten banks in

the world. It has beaten all Asian banks, including those in the private and public sectors

in the region. Global Finance Intelligence magazine "The Banker" published by the

prestigious Financial Times Group, London in its global survey suggested a merit list of

top 1000 banks based on the best profit on capital, assets and return on assets ratios.

About the best returns of capital (percentage) scale, the National Bank of Pakistan was

rated as the highest in Asia and eighth in the world. This is the first time that a Pakistani

bank's top position in the world was.

4. Organizational Structure

4.1 Organizational Hierarchy Chart of NBP



Designation of Higher Level Office

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

4.2 Number of Employees:

Total current staff position of NBP is as follows:

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

National Bank of Pakistan is limited to the fast growing bank in Pakistan and spends

much of innovation in the banking sector of Pakistan from the first day of its

establishment. The bank has been named the best bank his entire career of 61 years

old. Bank is currently in many cities of Pakistan with the network of 1255 branches. The

bank is currently operating with approximately 16,429 employees throughout Pakistan

and abroad. Be the member of such an organization is an honor for the employees and



the National Bank is all about due to the best human resources and competitive

advantages for the other banks operating in Pakistan.

Bank is not only providing services in the 21st century Pakistan, but also creating job

opportunities for the young blood of Pakistan.

4.3 Main Offices

Offices or Field Offices

National bank is the one of the biggest bank in Pakistan having more than 1250

branches that is serving the customers.

4.3.1 Head office of National Bank of Pakistan:

National Bank of Pakistan Head office NBP building II Chandigarh road Karachi,

Pakistan

4.3.2 Domestic Branches:

The National bank of Pakistan has 1255 branches in the Pakistan. That is operating in

whole of Pakistan in

Punjab

Sindh

Baluchistan

Khaber Pakhtoonkha

Islamabad

Azad Kashmir

4.3.3 Overseas Branches:

NBP has the overseas branches /offices in the following countries:



USA

Canada

Germany

France

Bahrain

Saudi Arabia

Bangladesh

Hong Kong

And many more countries around the globe

4.4 Introduction of Departments of NBP

Banking procedures are divided between different departments. Different departments

do their work in the presence at the bank policy. The National Bank of Pakistan every

branch is divided into different sections depending on their size and volume of business.

Head of the department manages each department and officials of the branch to follow

procedures. The departments working within the country National Bank of Pakistan

branch includes:

a) Cash Department

b) Account Opening Department

c) Clearing House Department

d) Advances Department

e) Remittance Department

f) Pension and disbursement department

g) Computer Department

h) Deposits Department

i) Accounts Department


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

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

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

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

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


4.4.1 Cash Department:

Cash department includes all physical movements of cash in the bank by the cash

department. As bank lending and borrowing institution, so cash is the highest priority of

the Bank. Another aspect is that cash department for security purpose, security in a

sense that there was no misappropriation of funds or cash led to the bank by a party or

person. The efficiency of the bank is also associated with this department more efficient

the bank is stronger and is working the cash department.

4.4.2 Account Opening Department:

The opening of an account is the creation of banker-customer relationship. This

department performs the duty of opening accounts for customers. They also issue

checkbooks to customers. If a customer wants to open an account with the bank

opening an account department needed some documentation and analysis of the

document information after the officer takes notes in opening an account register and

issue the account number of the customer. After pouring some customer can operate

his account.

4.4.3 Clearing Department:

The Clearing System, the checks must be paid or settled and central settlement for

claims and liabilities between banks. The SBP clearing coordinate activities through its

offices, known as clearinghouses, established in major cities and towns. Where SBP not

maintain its own office, another bank, usually the National Bank of Pakistan (NBP)

performs this function. But the clearing facility is only available for checks / instruments

drawn on banks located within the same city / area clearinghouse.

4.4.4 Advances Department:

The bank is profit seeking institution. It attracts surplus balance from the customer at

low rate of interest and makes advances at a higher rate of interest to the individuals

and business firms. Credit extensions are the most important activity of all the financial



institutions, because it is the main source of earnings. Advances department is one of

the most sensitive and important department of the bank. The major portion of the profit

is usually earned through this department.

The advances Department receive application from intending borrowers. After receiving

application the advance department processes it further. After analyzing and detailed

investigation, they decide whether to approve the loan or not. Some loan approvals are

made by the Manager of the branch within his powers as prescribed by the bank’s

higher authorities, while some loan applications are submit to higher authorities for their

approval.

4.4.5 Remittances Department:

The department handles the payment transfer money from one place to another. Funds

transfer facility or transmission of funds is one of the main functions of banks around the

world. Remittances through banking channels saves time, costs less and eliminate the

risks involved in physical transportation of money from one place to another.

4.4.6 Pension Disbursement Department:

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

function of pension payments or disbursements to pensioners. The pension

disbursement department is responsible for making pension payments to Government

Pensioners. The person who wants to receive his/her pension from National Bank of

Pakistan can open an account with any branch of National Bank of Pakistan. The bank

performs this function through Demand Draft Purchase or simply called DD Purchase.

This department performs following functions:

Making Pension Payments



Opening of Account of Pensioner

Entry of amount paid to pensioner in Government Pensioners Register

Verifications of Signatures of Pensioners

4.4.7 Computer Department:

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

faster and helping the bank for providing better services to its customers. The National

Bank of Pakistan has three types of branches in all over Pakistan, these included Online

Branches

4.4.7.1 Online Branches:

The branches are directly related to the central computer AS-400 through wide area

networking via fiber. These branches are dumb terminal directly connected to the

central computer.

4.4.7.2 Evening Data Receiving Center:

Batch data form branches at the main office in diskettes and manual form branches in

the form of hardcopy. Data consists of transactions in the income statement, the current

account, advance etc as” Daily Transaction Report”.

4.4.7.3 Data Entry Department:

The next task after receiving the data is to enter that data in to a computer. The floppy

disk is directly inserted in the computer. The program in used is based on “COBOL”

language. This program is designed in a way that it demand “Hash Value” value before



opening the floppy for further action this value serve the purpose of password or pin

code send by the branch on entering that value the data enter in to the computer. This

computer is attached with the terminal of central computer. The operator of that terminal

takes the data from the computer and converted it in to a text file through that terminal

the data finally goes to the central computer.

4.4.8 Deposit Department

The primary function of the National Bank of Pakistan is to accept and surplus money

from the people who volunteered their deposits with the Bank. Like all other banks,

National Bank of Pakistan also turns to draw as much as it can depositor. The escrow

service accepts / collects deposit account holders.

The National Bank of Pakistan offer different deposit schemes to its customers, which

includes the following:

Current Deposits

PLS Saving Deposits

Fixed Deposit Account ( Time Deposits)

Foreign Currency Account

NBP Premium Aamdani


National Income Daily Account (NIDA)

4.4.9 Accounts Department:

Accounts Department of the bank can be considered the most important department.

This department is basically concerned with processes and activities of recovering,

sorting, summarizing and reporting data resulting from the whole day transactions of all

the departments. Actually the process of this activity starts from the preparation of all

the required vouchers by different related departments. When these vouchers are

prepared, these are posted into respective computer terminals by the relevant

departments. Before merging, a batch list is printed out by Computer Department and

duly checked by the respective departments. After this, merging stage comes, after



which a proof list is printed out. This is the stage, where Accounts Department starts

performing its function. Proof list is checked by the Accounts Department. The account

department prepare following vouchers and reports

Monthly Profit & Loss account- F48

General Ledger

General Ledger- Abstract

Check Book Issue Register

Western Union payments Register

Demand Notices

Miscellaneous Book

Bank Transfer scroll

Posting NBP Advance Salary

Daily Statement- F21

General Ledger- Head wise

End of Day register

Posting National Income Daily Account (NIDA)

Monthly return register

Charges A/c register

P-L-S Profit list

Weekly Telegram

Mail Transfer Register

Government Scroll

Provident file

Government Scroll Debit & Credit

Transfer Responding Advice Dispatched Register-F15

Cash Remittance IN

Cash Remittance OUT

NBP General Account

Utilities register



Closing entries

Daily activity checking

Minor expense recording

4.5 Comments on the Organizational Structure

There is excessive workload on NBP employees; bank staff sits for long hours to

complete their work. Staff members have to work continuously from morning till evening.

There is unequal work distribution among newly employed staff and seniors. Seniors

work symbolically while new comers are laden with heavy responsibilities. Same is the

case with female bankers; they have to do work nonstop till closing.

Part-II



5. Internee Work

5.1 Brief Introduction of the Branch:

I worked in National bank branch situated at Morr Emanabad Gujranwala. I did my

internship from 22-07-2013 to 30-08-2013. This branch is not offering all the products

and services as mentioned above, as few services are offered only at regional offices or

head office level but still providing enough services. The branch is well equipped with all

the required resources which are needed in order to provide good services to the

customers. The total number of people working in the branch is 10.

Branch Details:

Branch Name NBP Morr Emanabad Branch

Branch Code 0772

Address Morr Emanabad G.T Road Gujranwala

Phone 0553263868

Fax 0553261868

Tehsil Gujranwala



District Gujranwala

Province PUNJAB

SWIFT Code NBPAPKKA02G

Status ONLINE BRANCH

Email [email protected]

5.2 Details of Supervisors:

Shaikh Ihtashaam Ahmed OG I (Manager)

Rafaqat Virk OG I (Manager Operations)

Faiz Fareed OG II (Credit Officer)

5.3 Weekly Time Table:

I worked in NBP (Morr Emnabad Branch ). I completed 6 weeks of internship and performed many activities there. My weekly time table was as follows:


mailto:[email protected]


Department Weeks Date Day Daily Work

Clearing

Week 1

23/07/2013Tuesday

Introduction with all the Staff member of the branch

Clearing 24/07/2013 Wednesday Introduction to Clearing Department

Clearing 25/07/2013 Thursday Inter City

Clearing 26/07/2013 Friday Inward Clearing

Supervisor Name: Mr. Faiz Fareed Signature -------------

Department Weeks Date Day Daily WorkClearing

Week 2

29/07/2013 Monday Outward Clearing

Clearing 30/07/2013 Tuesday Outward Clearing

Clearing 31/07/2013 Wednesday OBC

Clearing 01/08/2013 Thursday OBC

Clearing 02/08/2013 Friday OBC


Department Weeks Date Day Daily WorkRemittances

Week 3

05/08/2013 Monday Introduction to Remittances

Remittances 06/08/2013 Tuesday Introduction to demand draft

Remittances 07/08/2013 Wednesday Introduction to demand draft

Remittances 08/08/2013 Thursday Introduction to Pay Order

Remittances 09/08/2013 Friday Introduction to Pay Order



Remittances

Week 4

12/08/2013Monday

Introduction to Online transfer and receiving of Cheques

Remittances 13/08/2013 Tuesday Receiving the cheques of same branch

Remittances 14/08/2013 Wednesday Fixing the stamps on Cheques

Remittances 15/08/2013 Thursday Passing the cheques to cash counter

Remittances 16/08/2013 Friday Receiving the Online Transfer



Account Week 19/08/2013 Monday Detailed Introduction to Account opening



Opening

5

Account Opening 20/08/2013

TuesdayGiving detailed information about types of account to clients


Wednesday Receiving the account opening form


ThursdayReceiving the application and issuingCheque Book


FridayReceiving the application and issuingATM Card



Money Gram

Week 6

26/08/2013Monday

Introduction to Money Gram

Money Gram 27/08/2013Tuesday

Dealing with clients and receiving application form for money gram

Credit 28/08/2013Wednesday

Introduction in Credit Department

Credit 29/08/2013Thursday

Different Credit Department products and dealing with loans

30/08/2013 FridayMeeting with Branch Manager and thankful to all the staff of the branch for cooperation during the Internship


5.4 Detailed Description of the Departments in which You Worked5.4.1 Account Opening Department

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

money from the people, which they willingly deposit with the Bank. To accept the

deposits from the customer there is a need for developing banker customer relationship

and account opening department perform this activity. A person who wishes to open an

account with the bank has to fill an account opening form obtained from any branch of

National Bank of Pakistan. The bank officer tactfully obtains Information about

character, integrity, responsibility, occupation and the nature of business of the

perspective customer. Any individual, who has attained the age of majority and is of

sound mind, can open and maintain his/her account Two or more individuals may open



an account jointly. Similarly, business organizations such as sole proprietary concerns,

partnership firms, and limited liability companies as well as non-profit organizations like

clubs, trusts, societies, associations and NGO’s etc, may open their accounts.

After analyzing the detail documentation and required information. Like all other Banks,

National Bank of Pakistan also take incitation to attract as much depositor’s as it can.

The National Bank of Pakistan offer different deposit schemes to its customers, which

includes the following:

Current Deposits

PLS Saving Deposits

Fixed Deposit Account ( Time Deposits)


NBP Premium Aamdani


National Income Daily Account (NIDA)

5.4.2 Remittances Department

The Remittance department deals with the transfer of money from one place to another.

Funds transfer facility or remittance of funds is one of the key functions of the banks all

over the world. Remittances through banking channels save time, costs less and

eliminate the risks involved in physical transportation of money from one place to

another. National Bank of Pakistan transfers money in the following ways.

Pay Order

Demand Draft

Mail Transfer

Telegraphic Transfer

Pay Slip

Call Deposit Receipt

Letter of Credit

Traveler’s Cheque



5.4.3 Kinds of Remittances

Transfer within the branch

Transfer from one branch to another

Transfer from one bank to another bank in the same city

Transfers from one bank to another bank in two cities.

5.4.4 Clearing Department

All the cheque and negotiable instrument, which are drawn or received from other bank,

are processed and subsequently settle by the clearing department.

For a bank, following are the requirements of being a member of clearing house:

It must be scheduled bank i.e. it is registered

It must have account with State Bank of Pakistan

Sufficient balance should be in his account

Normally clearing is carried out in SBP, but in the city where there is no branch of SBP

than National Bank work as subsidiary of SBP.

5.4.5 Types of Clearing

There are two types of clearing

Inward Clearing

Outward Clearing

In inward clearing the Cheques of other banks comes in National Bank while in outward

clearing the Cheques of National Bank goes to other banks.

5.5 Description of the Operations Performed in Concerned Department

5.5.1 Requirements for Account Opening and Closing of Account

Opening an account with the bank is the creation of banker customer relationship.

There are some terms and conditions to follow in order to build this relationship.



5.5.1.1 Terms and Conditions

Account opening requires things:

National ID card of the customer and introducer

5.5.1.1.1 Introducer

Introducer is a person having the account in same branch and gives guarantee about

the customer. If the introducer is not proper then state bank charges RS 5000/- per

head from that employee of the bank who has opened the account of the customer on

the request of the introducer.

5.5.1.1.2 Customer

Customer is the person who comes with the purpose of opening the account

5.5.1.2 Procedure of Account Opening

First, the customer is required to an application form. Then he attaches a photocopy of

his ID card and fill in the signer. Now he fills the pay-in slip and deposit money on the

counter. Assigned to a bank account within one day after confirmation from

headquarters to Mall Road Lahore. Now he fills the pay-in slip and deposit money on

the counter.

Following things are needed for opening of account:

Account opening form

Letter of thanks

Specimen Signature card

Issuance of cheque book

Next of kin

5.5.1.3 Account Opening Form

Account opening form consist of

Category of account

Currency

Title of account

Account number



Customer information

Initial deposit

Authorized person in case of customer death

5.5.1.4 Specimen Signature Card

The signature card included the name and specimen signature of the customer

5.5.1.5 Next of Kin

The families of the customer authorized the bank to support the work of their PLS /

Current account in foreign currency to be paid by the person describing the relationship

of the person with the customer after the death of the client.

5.5.1.6 Letter of Thanks

Letter of thanks is the latter issued by the bank to the customer for two purposes

1st purpose is to say thanks to the customer for opening the account in their bank

2nd purpose is to confirm the address provided by the customer while opening the

account.

5.5.1.7 Issuance of Cheque Book

Cheque book issued to the customer after sending the letter of thanks when the

customer comes with the last of thanks and request the issuance of the check book. A

check book (usually have 25 leaves) is issued to the customer.

5.5.2 Closing of Account

The client may close the account. The customer is required to submit an application for

closing the account. The account is closed and its balance is paid to him after deducting

the closing charges

There are many reasons for closing of account

5.5.2.1 Account holder Owen request

Death of account holder



Closing of account due to the bad manners of account holder

5.5.2.2 Functions of clearing department

In the clearing department following operations are performed

To accept Transfer, Transfer delivery, clearing and collection cheques from the

customers of the branch and to arrange for their collection.

To collect amount of cheques drawn on members, sub-member of local clearing house,

sent for collection by NBP Branches, not represented at the local clearing house

Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-

slip at the counter

Fixing the stamps

Scrutiny and receipt by the authorized officer

Returning the counter file to the depositor

Certificate and confirmation by the officer in charge of the department

Separating the cheque into transfer, transfer delivery, and clearing cheques

Functions of Remittance department

The need of remittance is commonly felt in commercial life particularly and in everyday

life general. A major function of any banking system is the transfer of funds from one

client or one place to another. By providing this service to the customer the bank earns

a lot of income in the form of service charges. This department deals with local currency

remittance i.e. remittance from one city to another without actually carrying the

currency. NBP uses following instrument for transferring of money

Demand Drafts (DD)

Telegraphic Transfer (TT)

Demand drafts (DD)

DD is a written order given by the branch of the bank on behalf of the customer to other

branch of the same bank to pay the certain amount to the customer. DD are issued for

the particular place other than place of issuance. A draft is a Cheque drawn by a bank

on its own branch or any other branch of another bank at a different place requesting it

to pay on demand a specified amount of money which is already received to the person

named on it.



5.5.2.3 Documentation

A printed application form is provided for filling in completely and signing by the

applicant. After depositing an amount of draft and commission of the bank, duly

completed and signed by two authorized officers, then it is handed over the applicant

and credit order is dispatched to drawee branch. Following are the pre-requisites for the

processing of DD:

Bank Serial No

No. of DD

Central No

Rs.60 Postage charges

0.02% Withholding tax

Telegraphic transfer (TT)

In this case the authority is given from one bank to other on the behalf of the customer

through telecommunication to debit their inter office account through them and credit

their parties account mentioned in TT. It is an inter bank transaction. Telegraphic

transfer is an instant transfer of funds. Through this method applicant can transfer

money from one place to another place.

Applicant has to fill a form along with depositing amount to be transferred and bank

commission. NBP charges the commission at the same rate as in the case of demand

drafts.

Documentation

Issuing Branch Name & Code

Beneficiary Branch Name & Code

No. of TT

60 Rs. for Postage and 140 Rs. for Fax

Amount in words & Figure

0.02% Withholding tax



5.5.3 Western Union Department

In 2002 the Bank signed an agreement with Western Union for expanding the base for

documented remittances. Basically Western union department provide service for

receiving of money from different countries. Through western union you can only

receive money but cannot send the money to other country .The main advantage of

western union is that it is not necessary that the person who is going to receiving money

has account in bank .The customer directly receive the money from bank. Mostly the

amounts are in the form of PKR, Dollar Euro and in Pond.

Required for western union

Western union secret code number

CNIC copy of receiver

Telephone number of receiver

Name of the sender

5.6 Detail Description of the Tasks Assigned

As stated above in the weekly schedule of my internship. I have gone through different

departments of general banking risks such as the clearing department, remittances

department, opening a bank department, money grams, and advance section and a

large number of tasks in this section are for six weeks of my internship at the National

Bank of Pakistan Morr Emanabad branch of the kind guidance of my supervisor

Faiz Fareed. On the first day of my internship my companions introduced me to all

employees in the industry and tell me about the different departments of general

banking risks involved in the industry and the activities conducted in these departments.

The next day I was guided by my immediate supervisor about the department and the

clearing operations conducted in the department and the importance of the clearing

department of a bank. He tells me about the intercity clearing and how that service is

performed by the NIFT and the functioning of the NIFT and the role of the banking

industry, which operates as a subsidiary organ of State Bank of Pakistan then I started

working when practically my supervisor guided me how practical the check clearing for



active and how to check for the clearing send and receive. But first of all he tells me

what kinds of checks, the Customs Clearance, Customs Clearance including the checks

drawn in the industry, other than the controls of the National Bank of Pakistan. I started

receiving checks for Clearance by filling out the coupon and attaching the check with

the slip of NIFT and then write the name of the person, the amount, check number, city,

and the bank and the introduction of the e-mail box of the NIFT. All day I enter same

activity in the clearing department, and I enter the Clearance nearly two days

continuously and I was enjoying this activity and feel good. As a control, which is sent to

clean up the bank then ejected from the courier service are cost if the check cleared

then no fee received by the bank?

Then I find out about the outward clearing and how to control our branch established in

another branch or city received and I started receiving these checks and the writing of

these checks in the registered and making these checks on the account counter knows

the purpose of clearing, such as the clearing of the amount actually presented in the

respective presented with the signature and the signature on the signature copy. After

active and passive clearing I was quite aware that the areas not included in the intercity

and what NIFT is not providing the services of the clearing house checks accepted for

Clearance to these remote branches for the purpose of clearing to send. These checks

are sent by courier such as TCS, and postage costs are received by customers.

So far I have spent two weeks in the bank and clearing work in the department and

practical implementation of the clearing activities. Now I have to shift from clearing of

remittances department. Remittances from the word it makes clear that the transfer of

funds from one place to another within a country or outside the country. After the

implementation detail with my direct supervisor about the department and the clearing

operations conducted in this section. DD is a written order from the branch of the bank

account of the customer to another branch of the same bank to pay certain amount to

the customer. DD issued for specific other than the place of issuance.

A draft is a check drawn by a bank for its own agency or other branch of another bank in

another, the claim to pay on demand a certain amount of money that has already been

received to the person named on it. In this section I started making the DD Pay Order

etc the instruments for the purpose of the transfer of funds used from one place to



another place in the same branch or the other on the same bank branch. By filling out

the voucher and the cash counter for accepting the money and paying the slip in desk.

After this I know about the various other activities in this section is not, as the receipt of

funds by completing the receipt and acceptance of required documentation and passing

the cash counter and receiving checks from the same branch and honoring checks

thesis presented as it is the responsibility of the industry and to counter this I have come

to know the sharp fundamental things to the checkout and fixing the stamps on the

control and passing the check at the cash counter.

I also join the Western Union branch. In this cabin I treat the customers at the branch for

receiving remittances sent by their relatives, friends, etc. There were two types of

remittances through Western Union and the second direct transfer of the National Bank

of Pakistan. In this cabin I agree with the application of CNIC of the customer and the

secret code of eight digits. Then enter the information in the online form Western Union

and if the information matches than taking the print and fixing the marks and passing it

to the cash counter.

It is the fifth week of my internship; like clockwork and I am learning fast and I got the

account opened in the department store to close. My immediate supervisors tell me in

detail about the department. Opening an account is basically the step of building

customer relationships baker and guided me on the different types of accounts are

offered in the industry and the fundamental requirement of opening an account. First,

the customer reach the age of majority and a national identity card to receive the CNIC

and fax it to the regional offices of NADRA for the purpose of verification and after

verification of the other basic requirements, such as knowledge about the nature the

customer's source of income etc to fill the account opening form and receive this form

from the customer and takes the customer's signature on the signature model and the

issuance of the check book and filling the deposit cash slip for the first deposit required

to open the account.

In the last week of my internship, I join the pension cell and this cell I almost made

increases in the pension and the pension issue and the scrolling of the amount of the

pension and the calculation of the total at the end of the day. In the same week I also

join the department advances in the industry and learn about the different types of credit



offered in the industry, their needs, abilities, and interest and calculations, "the renewal

of the cases and closing the various cases in the credit department. I have been

through several departments and performed the various tasks given to me by my

immediate supervisor. At the end I will only say that I really enjoy working of banks and

learn a lot about banking, which every person should know who is a general account

and dealing with the banks familiar with these procedures really help in the routine life,

while trading in banks.

5.7 Internship Learning Summary

The main purpose of doing an internship is not only to meet the academic requirement

or the achievement of good quality, but also to learn about the application of our field of

study in our relevant market. During the six weeks of my internship, I learnt a lot and

this learning will have the real impact on my future life or career or social life in a

society. In this learning phase the institution in which you are doing your internship also

matters. As the cultural institutions, the core values and beliefs of the people and their

attitude towards the organization influence the learning process.

5.7.1 What skills and qualifications you think that you have gained from the internship:

Before the beginning of my internship at the National Bank of Pakistan Limited, I was

just thinking it was a regular activity to do an internship, because students usually do

not show a real interest in this healthy activity. I have learnt many of the skills down and

write all these is very difficult, because some of these skills are always hidden that only

comes at certain stage . I'll share some of those skills I have learned throughout this

period of the internship.

How to develop the attitude of doing hard work in an institution and perform the same

activities continuously over the period. How to show sincerity and dedication towards

the organization and towards the members of that organization.

How to deal with customers or a community and how to show patience in a difficult



situation and making people feel they can trust you and then actually overcome the

prevailing problems.

The development of coordination between job performance and between your lifestyle

so you never have enough of the routine activities of your professional life.

It improved my communication skills and above all the talking and the influencing power

How to work in a team led by someone and how to deal with colleagues in your

professional life. Paying respect to the desired people and appreciate the work of others

The most interesting and important things I have learnt and have developed many skills

in myself because of the Internship communication with hundreds of clients I know

about the psyche of people with communication and reading through their behavior the

way the conversation etc

5.7.2 What kind of responsibilities you have undertaken during the internship

period?

My responsibilities were following ;

To open account

Providing money to customers through western union process

To perform scrolling

To perform NADRA verifications

Inward clearing

Outward clearing

5.7.3 How do you think the internship activities that you carried out are correlated with your classroom knowledge?



As mentioned in the daily work report section that I've gone through several general

banking counters and I have different responsibilities in this period in each

department. Now at this point I will generally talk about the responsibilities I have

undertaken in this period.

Firstly I undertook the responsibility of the punctuality and the development of

the attitude I need it on time so that everyone can not develop the negative

thinking about me

To work hard and accomplish the assigned tasks on time.

Be ready to do something new or to learn something new in the field

5.7.4 How do you think the internship activities that you carried out are correlated with your classroom knowledge?

Before the beginning of my internship at a bank, I had some confusion about the

banking system of Pakistan, as the environment of the banking sector by my friends and

family I was little aware, while thinking about their career in this industry, but after this

stage removes all the confusion of the mind. No doubt the operation is quite difficult for

the banks and it really affects the social and family setup of a person over the jobs in

other industries, but someone has to sacrifice something to the excellent position and a

clear position in an institution of the future because there is too much Banking scope

and one can grow as he dreamed in his life with hard work and dedications. So I've

decided to jump into the banking sector in the future, because I'm seeing the beautiful

future in this business because I enjoyed while working in the bank.

5.7.4.1 Correlation between the Internship Activities and Class Room Knowledge

If my perception and the activities I have done, I have my own view that the classroom

knowledge and actually working in the market is not too much highly correlated in my

opinion. In my view might be, there is a high correlation to the U.S. market, because for

the past six semesters we have been through the books of American writers and have

written about their own market and the Pakistani environment and culture is completely



different to against the U.S... Up to a certain extent the procedures and the role of the

central bank in this system is correlated, but all the other things like work, reward

systems, benefits and other matters relative though it does not exist in our environment.

So I think there is a need to change the academic syllabus and classroom activities that

can be the future workforce, according to the market requirement to produce.

Finally I just want this department that this sort of healthy activities in our education

system must be fostered at all levels with students. Students should know how their

academic knowledge can be used into practical work that will benefit him in his future

life.

6. Conclusions of the report

6.1 A summary of key conclusions derived from the internship experience.

It appears from this report and the accounts of the NBP that NBP will progress by leaps

and bounds an aggressive and innovative financial institution and continue to stick to

the tradition of understanding the customer needs and looking for new ways to serve

them, the earnings of NBP have grown considerably in recent years and this trend is

expected to continue into the future. Further integration and productivity will result in

better performance in terms of turnover and service quality in the coming years;

therefore, we conclude that NBP has a very prosperous present and future, in which the

shareholders wealth maximization is assured. The strong leadership of Directors and

management and the continued efforts of staff at the National Bank will be able to

provide more superior products and services to clients and contribute more to economic

and social development of Pakistan, while the development of a greater future. Side by

side, I think if the bank would cover these recommendations and it would control in such

a situation that really will lead to the path of prosperity, development and integrity.

6.2 General Observations about NBP:

The banking sector in Pakistan has great potential for investment and job creation for

young and energetic generation and offers bright future. No doubt, the job of a banker is

hard and it is difficult to achieve the goals, but one can find the status of respect and



honor in society. The need of time is to solve the economic crisis and terrorism in the

country in order to increase foreign investment. The foreign investors should be

encouraged so that they might show their willingness to invest in the banking sector but

due to terrorism, foreigners do not feel it a safe to undergo investment in Pakistan

because of this reason, they recover their investment. The need of the hour is to

increase foreign and domestic investment so that it can play a vital role in economic

growth of the country.

6.3 SWOT ANALYSIS

The SWOT analysis is done by the organization for the environmental scanning. The

strength, weaknesses, opportunities and threats are analyzed by organization from the

external environment. NBP SWOT analysis is given below:

6.3.1 Strengths

One of the National Bank's brands is its great strength. It has always been considered

the mainstay of the country wise asset economic scenario that balances point. Its

image, working, networking and reputation have created a sentimental and emotional

attachment of people with the bank.

Full electronic network is the strength of the bank. Now the bank has the ability to

compete with multinational banks and keep pace with the changing and rapidly

expanding world of the computer have become necessities today. The reserve funds

provide positive sign if they have increased over the previous year.

Another competitive advantage that the bank has on the rest of the competitors is the

company growing globally for a large catering and large group of customers and

maintaining standards of excellence worldwide and other strengths of NBP.

6.3.1.1 National Institutions

The great strength of NBP is owned by the Government of Pakistan. So people can

believe and be able through their large investments in NBP without the fear of failure in

the future and thus NBP is the most reliable and trustee institution in Pakistan.



6.3.1.2 ORGANIZATION CULTURE

NBP organizational culture was very friendly and interesting. Employees have a very

cooperative environment among themselves. They have created loyalty to the

organization to deviate from their future efforts and energies. The staff members

consider the organizational problems as their personal problems and try their best to

solve them and work for the prosperity of the organization.

6.3.1.3 STRATEGIC TOP MANAGEMENT

Fortunately NBP has from time to time best top management.

6.3.1.4.INDUSTRIAL POLICIES

NBP helps the government on the implementation of its industrial policies with respect

to economic growth of the country.

6.3.1.5 LENIENT POLICY WITH THE CLIENTS

Workers of NBP deal well with their clients. So that people feel satisfaction and will

continue taking services of NBP.

6.3.2 WEAKNESSES:

National Bank created its own weakness by downsizing. As a result of downsizing

several experienced and dedicated employees were either forced or offered the

opportunity to leave. This downward trend could cause a major threat to the bank as its

competitor’s would occupy its market share, leading to corrupted image and reputation

of the bank and therefore constitute a danger in the long term. The graph shows a

decline in the performance of the bank. NBP major shortcomings are given below:

6.3.2.1 LESS ATTENTION TO THE RURAL DEVELOPMENT



NBP portfolio shows that they finance projects only in big cities of Pakistan. But a

reasonable attention is needed in the project financing of rural-based industrial projects

in the country.

6.3.2.2 POOR ADVERTISEMENT

I have observed this that in comparison with other banks; NBP is very poor in

advertising themselves, their products and their services.

6.3.2.3 POOR NETWORK

NBP has offices in major cities of Pakistan and abroad that other competitors do not

have. Despite all, the branches have less online network.

6.3.2.4 Political interference

Political interference in the recruitment system

Uncertainly among the employees due to threat of downsizing

6.3.3 OPPORTUNITIES

National Bank has very good prospects for the future. They plan the region their past

glory, not only in terms of profitability but also the latest technology and competent

workforce. Moreover, NBP is the only bank that has facility of collecting bills from 9

hours up to 5 hours. NBP is considering setting up an exclusive utility bank in

collaboration with a private company that would provide this service for 12 hours.

6.3.3.1 SPONSOR THE IT BASED PROJECTS

This is the best opportunity available to all banks and NBP that it can sponsor the IT

and computer-based projects as the next century is the century of information

technology and as a new day business community will have all the attention to this area.

6.3.3.2 GOODWILL AND BETTER IMAGE



NBP has the advantage of generating more deposits and attract valuable customers

due to better image in the business world. NBP also has advantage of increasing credit

lines. This is only due to proper treatment and a better image, that NBP has direct credit

lines acquired from abroad only be achieved by a better image can NBP help in an

explanation of its activities.

6.3.3.3 GROWTH IN THE INDUSTRIAL SECTOR

NBP has important function in financing projects and it does this with full commitment.

Fortunately industrial sector in Pakistan is growing again so the business opportunities

of NBP are also growing.

6.3.4 THREATS

If there is a threat to the entire economy, it will be a threat to the National Bank. The

freezing of accounts by the State Bank of Pakistan has caused problems for the Bank.

But the latest facts and figures indicate that banks big rivals like MCB and HBL can

cause threats for the bank in the long term, they can snatch away the market share by

attracting a large number of customers due to rising standards of their giving quality

service and value added products. Other major threats are as under:

6.3.4.1 POLITICAL INFLUENCE AND INSTABILITY

This is the major threat to any business organization in Pakistan because of political

influence; NBP is facing many problems in daily course of business and this is affecting

the profitability of NBP. Political industry is even a threat to NBP as NBP faces much

political pressure while recruitment.

6.3.4.2 SICK PROJECTS



NBP's sick projects are increasing day by day due to economic ruin. If our economy is

weakening day by day, a large number of side-projects are becoming increasingly so ill

that it has effect on profitability, even affects the survival of NBP.

6.3.4.3 LACK OF MODERN BANKING TECHNIQUES

NBP next fifty years old style of banking in the computers of NBP Symphony word

processor is still used. What is the oldest word processor because of this deposit is

looking to be fixed, due to the provision of credit cards and other such services from its

competitors both local and foreign banks, it seems limiting factor in deposit mobilization

efforts of the corporation.

7. RECOMMENDATIONS & SUGGESTIONS

NBP is an effectively operating profit and making organizing and carrying out its

activities under a particular system of procedure. The main regulatory body is the State

Bank of Pakistan, which provides policy guidelines and ensures that money market

operates on the basis of sound professional while, the head office sets the whole

procedure of the functions and operations. This procedure is upgraded over time in

order to improve access and basic procedures for the effective regulation of its

capabilities in order to bring them at par with international practices. Here are some

suggestions that my opinion can add some data for efficiency and better performance of

the NBP as an organization in general and as a main branch in particular.

The recommendations are as follows:

7.1 Professional Training

NBP staff lacks professionalism. They do not have the necessary training to do the job

efficiently and properly. Although staff colleges in all major cities, but they are not

performing well. For this purpose, these colleges have to reorganize staff and their

curriculum should be done in such a way to help employees understand the ever-



changing global scenario economic growth. Pakistan Banking Council should also

initiate several programs to equip staff with much needed professional training.

7.2 Delegation of Authority

Bank employees should be given a task and authority and they should be asked for

their responsibility. Pays proper attention to each job and concern bodies are

responsible to delegate authority to which they think will perform better.

7.3 Performance Appraisal

Manager should strictly monitor the performance of each staff member in particular the

activities of the branch manager. All they have to be given in accordance with their

performance and result in the form of rewards to motivate and encourage them to work

more efficiently.

7.4 To Over Come Problem of Space and Furniture

In this critical analysis, the problem is discussed. To overcome this problem, it is

suggested that a separate section should be done within the branch which should

address only the position of treasurer, salaries and pensions of federal or bank staff to

do these functions at the time of the evening. Management also have to buy more

furniture and arrange them in a way that provides maximum space and suitable

especially in the department of deposits and should not be sitting convenient place for

customers.

7.5 Need Qualified Staff

Necessary, qualified personnel should be provided to expand the purpose of improving

the functioning of the branch. Especially a telephone operator should be appointed.

7.6 Link with the Head Quarter:



NBP is not online yet even at the age of 21-century at least 100 main branches of the

NBP has established a direct link to the quarter, head to Karachi, via Internet or

Intranet. This will make management functions and decision-making easier and

convenient.

7.7 Clean Loans

Clean loan or overdraft facility clean is customer lending to consumers without any

security. These types of small loans, however, should not extend to anyone, because

once these loans are provided to people with blue eyes of management and they

become a part of bad debts.

7.8 Decreasing Administrative Expenses

Bank should lower their administrative costs. These were Rs 8 billion in 2000. That can

be done while lying off surplus pool of employees with the golden handshake scheme.

Branches that are not used much can be closed. An employee may be how to control

costs of the bank. That will yield positive results in the future.

7.9 Technological Advancement

I would like to suggest that at least all the main branches of the NBP should be fully

computerized in order to expedite the process dealing among bankers and their clients.

Each department should ensure a computer with adequate training (especially

Advances, Deposits and Foreign Exchange Department) Daily records must be entered

directly into these computers, (rather than enter the total daily transactions after banking

hours). This will not only reduce the time of the transaction, will increase accuracy, but

will also be efficient as well. NBP should also introduce its product to credit card and

place the maximum number of ATM's in almost every city where there is a branch of

NBP.

7.10 Improper Distribution of Work



Proper distribution of work leads to success in any organization. Appropriate distribution

of work prevents the employee from above and below the work situation. So, for a

smooth distribution, a proper organization of work is hinted to be followed. During my

practice I have noticed that there was no proper division of labor in the bank. I saw that

some of the employees worked as the other ants starting sat idle here and there. So this

created a lot of the work situation for the other relaxation time. Favoritism and nepotism

should be removed. The organization should not have favoritism and nepotism policies

and their transfer and promotion should be based on merit and according to the rules

and regulations of the bank and the environment given in favor of the employee to show

their performance.

7.11 Marketing Policy

Branch should adopt different strategies of marketing and promotion strategy to

promote the bank and its products but being a nation of the bank that does not make

policy so much marketing. More important in my opinion is a personal marketing, but is

most effective of all when you think in terms of branch level. But at the whole

organization, they should organize a seminar within the bank and outside the bank.

They should represent different schemes prizing only as Habib Bank. Mahana Scheme,

Bank Al-Falah (monthly scheme earning income) and various others. They should do

more advertising in newspapers and media and through personal contacts channel.

7.12 Avoid Political interference

Political interference is the second largest problem for the National Bank of Pakistan. So

it is very important to avoid political interference in banking operations. In order to avoid

this is the first suggestion of the bank denationalization.

7.13 Recommendations with their feasibility (economics, political, financial)



The bank should improve the quality of training of its employees and the

integrity, controls and efficiency of its systems, processes and financial

reporting.

NBP major fault is that wasn’t keeping its pace with ongoing changing in

banking industry unlike other bank. Now this bank combining all it power

and trying to approach other banks.

Latest reorganizing efforts are necessary in order to make it cost effective

also making its facility accordingly to modern banking. These must

continue.

To attract the customer in the future NBP have to make extensive effort to

give facilities of retail and consumer banking. Plus the technology in the

banking which will be necessary for future banking is another week area

need to be stressed.

The outlook and interior lay out of the branches is another thing which

needs to be improved.

The procedure for providing services must be easier and straight forward

not involving long procedure for simple task.

The bank should improve its pension scheme in order to avoid the

complexity.

The bank should develop software for pension disbursement.

NBP, being the only lending arm to the government for public sector

development should design, develop and deliver product and services for

economic growth.

The NBP should adopt modern banking tools and techniques. Quality

leadership, clear vision, investment in IT infrastructure and human

resource development.



8. REFERENCES1. http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf

2. NBP Quarterly Report September 2007

3. http://www.nbp.com.pk/nbp/About_Us/About_US.jsp

4. NBP Quarterly Report September 2007

5. http://www.nbp.com.pk/nbp/About_Us/About_US.jsp

6. http://www.nbp.com.pk/Aamdani/index.htm

7. http://www.nbp.com.pk/Premium/index.htm

8. http://www.nbp.com.pk/Saibaan/index.htm

9. http://www.nbp.com.pk/advancesalary/index.htm

10.http://www.nbp.com.pk/CashnGold/index.htm

11.http://www.nbp.com.pk/StudentLoan/index.htm

12.http://www.nbp.com.pk/nbp/NBP_Treasury.jsp

13.http://www.nbp.com.pk/nbp/Treasury_Products.jsp

14.http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp

15.NBP Annual Report 2009


http://www.nbp.com.pk/nbp/About_Us/About_US.jsp

http://www.nbp.com.pk/nbp/About_Us/About_US.jsp

http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf

Date post:	06-Feb-2016
Category:	Documents
Upload:	bbaahmad89
View:	190 times
Download:	18 times

Internship Report on NBP

Documents