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CHAPTER # 01
1. INTRODUCTION
The National Bank of Pakistan is a Commercial Bank
and transacts all types of Banking Business. The National Bank
of Pakistan was established on November 29, 1949 as a semi
public commercial bank.
The Bank has the distinction of acting agent of the
State Bank of Pakistan and operates treasuries where the State
Bank of Pakistan does not have any office.
The Head Office of the Bank is at Karachi. Ever since
its establishment in 1949 it has been leading Commercial Bank
of the nation, sole agent of the Government of Pakistans
batter trade with countries and of State Bank of Pakistan for
the Government Treasury.
It has offices at all the major financial centers of the
including at pride places likes 100 wall streets, New York and
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United nations Plaza. Its International net-work includes
Branches at Bahrain, Cairo, Paris, Frankfurt, Hong Kong,
London, Washington D. C of shore banking unit at export
processing zone. Karachi and representative offices functioning
at Beijing and Seoul.
In Pakistan, the bank provides complete bank
facilities to the people at over 1436 Branches operating even
at the far lug Northern Areas. National Bank of Pakistan is the
first bank in the country to introduce and implement
supervised Ruler Credit Programmed help small farmer to
obtain loans at his doorsteps on easy terms and conditions. It
has also played a pioneering role in introduction of profit and
loss sharing System (PLS) as a major towards Islamization of
economy.
In addition to the normal business operations the
bank provides special loan facilities for higher education for
studies abroad and Qarz-e-Hasna to deserving poor students of
Medical and Engineering Colleges in Pakistan. The well
equipped research department to work on the cdeveloping
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tredns of finance and banking, besides a very well managed
library at the Head Office.
The banks carry on its business through a wide
network of branches locally and internationally. These branches
execute their function under the supervision of local Regional
Offices and regional offices are supervised by the Head Office
located a magnificent building in the heart of Karachis center.
In the forty five years that have followed the bank
has made remarkable progress testifying to several things.
It is now extending the operations of the Bank to all
branches to Banking, to commerce, to industry to trustee
services as well as to agriculture and to the need of the small
or big businessman.
It has rapidly advanced from an institution with
restricted power to the biggest commercial banks in the
country it also shows it soundness of the policies that the bank
has pursued in the execution its tasks.
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The National Bank has lead the trial in this respect,
other banks have followed it. The National Bank has great
contribution towards building wide Banking structure in
Pakistan and serving all aspects of the National life and all
classes of society.
Source: http://www.nbp.com.pak
2. HISTORY AND MANAGEMENT OF N.B.P
The story of National Bank of Pakistan is part of
Pakistans struggle for economic independence.
When, National Bank of Pakistan came into existence
in November 1949, the country was facing a severe economic
crisis originally, the intention was to set up this Bank some
time in early 1950, but the critical situation that developed in
the jute trade as a result of Indias refusal to accept the
exchange rate of the Pakistan Rupee, following the devaluation
of its own and the sterling functioning Dacca and opend its
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offices at five important jute centers namely Narayanganj,
Chandpur, Rangpur and Khulna, in the East Pakistan.
The Bank advamced large sums of money to the
agents of the newly established Jute Board and gave much
needed help to the market. The crisis was averted, the jute
growers received a fair price for the produce and the country
earned the foreign exchange it would have otherwise lost.
Again, in 1950 following the outbreak of war in
Korea, Cotton prices shot up to unprecedented levels and the
credit facilities available for financing the movement of the
cotton crop fell far short of requirement.
The National Bank of Pakistan came forward to
establish its offices in the Cotton growing areas and extended
credit facilities liberally in order to restore stability to the
market. In 1951, the country was once again faced with a crisis
in the cotton trade when prices was crashed and touched the
lowest level since independence following the cessation of
hostilities in Korea. The bank in collaboration with the cotton
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board provided the necessary Credit facilities to the trade and
the crisis was tided over.
Source: http://www.nbp.com.pak
Another important event in the early history of the
National Bank of Pakistan was taking over the agency work of
the State Bank of Pakistan in 1952, for transacting Government
business and managing currency chests at places where. The
Bank of Pakistan did not have an office of its own. In 1962, the
agency arrangement was extended for further period.
Prior to nationalization, a Central Board of Director
governed the bank which consists of a managing Director
appointed by the Central Government, nine directors elected
by the shareholders and the three directors appointed by the
Central Government. The President of the Central Board was
appointed by the central Government amongst the Director.
Consequent upon nationalization, the Central Board
disclosed and in its pace an Executive Board consisting of
president , who is the Chief Executive and four other member
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were appointed for General direction and superintendence of
the affairs and business of the Bank.
Source: http://www.nbp.com.pak
The general direction and superintendence of the
affairs and business of the bank vests in this executive board.
In 1980, the Federal Government constituted a Board of
Directors comprising the president, five member of the
Executive Board of the Bank one nominee each of the Pakistan
banking council and the ministry of Finance. All nationalized
commercial banks are controlled via the Pakistan Banking
Council, being to State Bank of Pakistan regulations as well.
The Federal Ministry responsible for Bank operations is the
Ministry of Finance.
3. OBJECTIVES OF NATIONAL BANK OF PAKISTAN
The main objective of National Bank of Pakistan has
been to include and spread banking habits among the people
mobilize their savings and thus make and ever increasing
contribution to the economic development of the country. It has
all along pursued a policy of rapid development extending, its
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facilities to almost every center of economic potential in the
country. Its services have been increasing continuously and are
being brought within an easy reach of the ever-growing number
of people.
Source: http://www.nbp.com.pak/
To day it provides the largest network of offices in
the country, 1436. Being in Pakistan and 22 aboard. It offers
remittance facilities to almost every important center in the
country to provide facilities to the traveling public the bank has
introduced its own travelers cheque which are en cashable at
a branch of the bank in Pakistan.
1. FUNCTIONS OF NATIONAL BANK OF PAKISTAN
The National Bank of Pakistan a commercial bank
generally makes advances for a period not exceeding one
year, except in case of small and medium industries for which
advance may be made for a maximum period of five years. The
bank makes not only against the security of stocks and goods
hypothecated or pledged to the bank, but also against
documents of goods and properly, shares are various joint
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stock companies, Government securities, Insurance policies
deposits receipts, etc. The margin, and rate of interest are
determined by several factors including the type of security the
size of loan and the integrity of the party.
Source: http://www.nbp.com.pak
The Bank is authorized to carry on kinds of banking
business and is empowered to make loans. It has also
undertaken special financing operations connected with
Government prices support scheme. The bank also gives
advances loans, especially for agricultural products, such as
cotton etc, It also safeguards the valuable articles of people. It
also arranges training programs for Bank officials.
It caters to the needs of the trade, industry &
agriculture, both in private & public sectors. It participates in
procurement of seasonal crops e.g. wheat, rice, cotton, sugar
cane, etc. It also provides credit facilities to small industrial
units agriculture sectors as per credit mandatory targets fixed
by the State bank of Pakistan.
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PROPOSE OF STUDY
The main & primary purpose of this study is to fulfill
the requisite requirements towards the completion of MBA
(Hons) degree. In this connection every Student is Require
undergoing an internship of six weeks in any business
organization institution.
The business internship report is carried on to be
familiarizing with actual working conditions in any organization
by physical & practical participation in the business affairs.
For this, I went to the Regional & Head Office of
National Bank of Pakistan & written report.
Secondly it is necessary for the Bachelor of Business
Administration that after acquiring through knowledge, we
should acquaint ourselves with the entire practical knowledge
& experience, which we can only gain through visiting any
Organization & Conducting a detailed study.
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Thirdly, the purpose of this study was to gain good
amount of confidence & to be come aware of the mechanism
of National Bank of Pakistan by working dealing with officials
of the Bank.
Finally, the purpose was to know how National Bank
of Pakistan plays its role significantly in the development of
financial & other industrial. There was an ample chance for us
in this study for learning about financing and Banking
development in Pakistan.
2. METHODS OF STUDY.
For the preparation of this Internship report, I used
two methods to collect data, first primary data collection and
second secondary data collection.
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In secondary data collection I interviewed different
officers and officials. For this purpose, I paid many visits to
National Bank of Pakistans Regional Office Hyderabad
,National Bank of Pakistan Fatima Jinnah Road Branch
Hyderabad.
In conduct interviews from head of the different
department of NBP and all the information is collected
systematically.
For this purpose, I prepared the questioner and
asked all the detailed function and procure of their
departments.
I interiewed following incharges.
1. Mr. Kauro Khan Memon (Area Manger)
2. Mr. Ghulam Murtaza Baloch (Incharge Advances)
2. Mr. Naeem Ahmed Shaikh (Incharge F.E. Dept:)
3. Mr. Saulat Hussain (Incharge Admin)
5. Mr. Sohail Ahmed (Incharge Inspection)
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6. Aijaz Hussain Rathore (Export)
7. Jamshed Ali (Export).
All above officers have fully cooperated with me and
provided all the necessary information, which was required to
me.
I have collected all the information by using both
methods Primary & Secondary data. All the necessary and
relevant information was systematically collected arranged
analyzed for writing this internship report.
I am highly obliged to and thankful to all the above
Executive and personnel of National Bank of Pakistan, who
have provided all the assistance and enabling me for the
preparation of this report.
3. LIMITAIONS
During the course of study, I faced many difficulties
in collecting the recent and accurate information.
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There are number of constraints encountered by
me. Some of them are as under:-
1. The Bank fid not allow me to work practically in the bank,
I was only bound to ask questions to their incharge officer.
2. They gave me very limited period of time per day visit,
which also caused some difficulties in obtaining adequate
information.
3. A good amount of information related to the books of
account, which may be beneficial for me were not
provided.
4. The bank officials because of secrecy of the bank maters
did not answer the number of question.
5. The lower grade staff was not properly trained therefore
they have been answered accurately.
6. Majority of staff member have not give full attention and
they were not interest to provide me the functional and
other operation details, except some officers who provide
me full assistance.
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Instead of all these difficulties, I have completed
this work due to full cooperation and assistance of earlier
mentioned officers.
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CHAPTER # 02
INTERNAL FEATURES OF NBP
MANAGEMENT AND ORGANIZATIONAL STRUCTURE
1- MANAGEMENT AND HEAD OFFICE MANAGEMENT
Among seven member of group Chief Executive is
called the President. The Bank also has directors for
superintendence and direction of its business. The members of
board consists of President. Who is Chief Executive and six
other directors as members appointed by the government.
The member of Board responsible for granting loans
in the field likes agriculture industry, housing and import export
trade and to make the policy of the Bank.
Source: The information about this chapter given by Soulat Hussain (Admin. Manager)
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A- Organization and Head Office Management
In the National Bank of Pakistans head office, there
are sixteen 16 separate division to deal with all the necessary
problems separately, on the top of all these divisions.
The details about these divisions are as under
International Division.
This is again sub divided into 2 divisions.
1. Foreign Exchange and operation division.
2. Administration and Credit division.
An Executive Vice President also manager these
divisions separately. Finance and investment division
(Economic Research & Cooperate Planning)
A Senior Executive Vice President also manager
these divisions and this section contains two divisions.
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3. Finance and Investment Division.
This division is further segmented into different
wings and a senior vice president looks after every wing.
(a) Investment & resources wing
(b) Accounts, Planning & Budgeting Wing
(c) Govt: Debit Management wing.
(d) Publicity and Public Relation Wing
(e) Editorial Board Quami Banker Wing
(f) Reconciliation Wing
4. Economic Research and corporate Planning
division.
This division does the work of economic research of
the country. This division is also managed by an Executive Vice
President.
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Administration, Computer and Human Resources
Development Division.
From the name it is clear that is consists of three
divisions namely.
5. Administration Division
This division is also divided into Establishment Wing,
Staff Relation, Central unit fraud and forgery and regulation
wing, Personal Wing and Personnel career planning wing.
6. Computer Division.
The division consists of computer wing and EDP
audit, and procedure and administration wing.
7. Human Resources Development Division.
This division supervises all the staff colleges, at
Karachi, Islamabad, Lahore and Peshawar.
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All the above division supervised and under
controlled by and coordinates under a Senior Vice President.
8. Audit and Inspection Division.
There are two wings working under this division, which is.
(a) Implementation Wing
(b) Regional Audit Chief.
This division deal with audit inspection of sub-ordinate
offices
2- LAW, RECOVERY, LITIGATION DIVISION.
There are two divisions, which take part in this section.
9. Law Division
10. Recovery & Litigation.
11. Customer Service Division.
12. Engineering & Maintenance Division
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13. Business Promotion and Marketing Division.
Credit Processing & Monitoring Corporate Credit
Division.
Two divisions are joint together in this section they
are.
14. Credit processing & Monitoring Division.
This division is distributed according to different
areas.
(a) N.WF.P & A.K Sindh Balochistan Area Wing.
(b) Karachi Area Wing
(c) Special Credit Cell and Punjab Area Wing.
15. Corporate Credit Division/Credit Policy Division.
This division segregated into two sections, to deal
them separately.
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(a) Co-ordination section .
(b) Agriculture Financing Section.
b). Field Management and Organization.
There are four executive to supervise the bank
maters of every province, as they are called provincials chiefs.
These Provincials Chiefs are responsible for the entire banking
in their provinces such as income. expenses advances and
deposits.
The Regional Chief NBP Balochistan
Regional Chief NBP Punjabn
Regional Chief NBP Sindh
Regional Chief NBP N.W.F.P & Azad Kashmir.
These provinces are again divided into regions, the
regions are controlled and management by regional heads,
which are responsible for the supervision in their circles and
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deal with the problem zones in their jurisdiction of Branches
and Staff.
The country has been dividedm into 19 (nineteen
regions) by NBP to ficilitate its functions.
Sindh Province
1. Karachi Region-A
2. Karachi Region-B
3. Main Branch Karachi Region
4. Hyderabad Region
5. Sukkur Region.
NWFP Province.
6. Peshawar Region
7. Abbotabad Region
Azad Kashmir
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8. Muzaffarabad A.K. Region
Balochistan Province
9. Quetta Region .
Punjab Province
10. Lahore Region-A
11. Lahore Region-B
12. Main Branch Lahore Region-C
13. Bahawalpur Region
14. Gujranwala Region
15. Sialkot Region
16. Faislabad Region
17. Multan Region
18. Rawalpindi Region
19. Islamabad Region .
These regions are also sub-divided into zones . The
incharge of zone is called Zonal Chief.
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3- ORGANIZATIONAL STRUCTURE.
Source: Soulat Hussain (Administration Manager)
PRESIDENT
DIRECTORS/ SEVPS
Procincial Chiefs/SEVPs
Regional Chief / EVP
Zonal Chief / SVP
Vice President
Assistant Vice President
Officer Grade-I,II,III
Clerical and non-clerical staff
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4- DEPARTMENT FUNCTIONING UNDER N.B.P
NBP has seven main departments for functioning of
which whole function of bank is depended or we can easy that
all services are rendered through these seven departments.
These department are esplained with their headings
are as under
a). ADVANCE DEPARTMENT
Advance department receives the application from
intending borrowers and submits the same application to the
higher authority after processing for approval the advances can
be of following nature.
Source: Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)
Source: Shafqat Ali Mahesar (OG-III)
Source: Mr. Khadim Ali lund Baloch (OG-III)
Source: Saeed Ahmed Khan
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a. Agriculture advance to farmers
b. Short terms advance to business man
c. Long term advance for setting industry
d. Medium term advance for working capital
e. Seasonal advance to cotton gingers Rice and sugar
mills.
b). REMITTANCE DEPARTMENT
Bank promotes the facility of remitting funds within
the country and outside country within certain limits, Usually
money remitted through Demand Draft, Telegraphic and SWIFT
transfer.
Always two parties are involved in this function one
is receiver and another is sender.
c). ACCOUNTS DEPARTMENT
Accounts Department maintains the fixed deposits
receipts of the depositor. Account department also keep
income and expenses accounts. Account department prepares
the weekly and daily statement of the affairs of the branch are
first like a balance sheet.
Source: Altaf Ahmed (OG-III)
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d). FOREIGN EXCHANGE DEPARTMENT.
1). Imports
We sell our foreign exchange to the other country
which is called such as we purchase the foreign goods from the
others. Import is done through letter of credit (L/C) by the
importer. Letter of Credit is an undertaking given by the
importer bank to the exporters bank.
2). Export
Export is to sell our goods to the other country and
earn foreign exchange. The bank provide facilities of exporting
the commodities to the manufactures of the goods of the
country.
3). Foreign Remittance.
The bank provides the foreign remittance facilities to
the student studying aboard. Bank also provides foreign
exchange in the shape of travelers cheques to the intending
visitors.
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Source: Syed Qamar Hashmi (Assistant)
Source: Aijaz Ali Rathore, (OG-III)
Source: Miss Razia (OG-III)
e). CLEARING HOUSE DEPARTMENT
The function of Clearing House department is to
pass the cheque presented by one branch of the bank to other
branches of the banks. Clearing house is usually set up on the
big cities and is control by the State Bank of Pakistan.
f). CASH DEPARTMENT
Cash department is backbone of the branch., Cash
department receives the cash from depositors and makes the
payment to the cheque holder.
g). MARKETING/BUSINESS DEVELOPMENT DEPARTMENT
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Marketing Department is set up in the big branches
in the commercial banks. Generally the main functions of the
marketing department are as under.
a). To introduce a valued client/depositors to the bank
branch.
b). To bring a valuable business for the branch.
c). To provide the financial facilities to the sound position
from the banks point of view.
d) Marketing, department plays very vital role in increasing the
savings of the bank.
e). The development of the branch depends upon effective
marketing system.
f). Marketing department introduce institution among the
persons. Generally the manager of the branch deals himself in
the marketing function.
Source: Rafique Arbaba (OG-II)
Source: Syed Shah Nawaz (Assistant )
Source: Moinuddin Muallian (OG-III)
Source: Mohammad Atiq Khan (OG-I)
Source:Various Bank information circulars. No & Date N/A
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CHAPTER # 03
ACTIVITIES OF NATIONAL BANK OF PAKISTAN
1. COMPUTERIZATION
With a view to up grading and streamlining the
working system of NBP and procedure plans were under taking
by the management to provide microcomputer and electronic
ledger. Cards machines to the larger branches of a bank. This
program will also be expended to the other smaller branches in
coming years. Utilization of the banks mainframe computer at
Head Office, which happens to be the most sophisticated
amongst all the banks in Pakistan is also progressing to further
upgrade the capacity of NBP in coming year.
2. DECENTRALIZATION
Under the direction of the government, operation of
all nationalized commercial banks were significantly centralized
by setting up provincial head quarter at Karachi, Lahore,
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Peshawer and Quetta, each headed by a member of executive
board, enjoying vast power.
The banks policy of decentralization of financial
sanctioning authority by delegation of powers to Regional and
circle officers and credit committee, resulted in improving
efficiency and prompt attention to the need of the customers
on a country vide basic. Decisions had been quicker and
service to client more rapidly and effectively available as a
result to this policy.
This scheme, which has been well received by the
business community and the various chambers will be
beneficial in quick disposal of credit facilities all provincial level
and will also help in solving the problem and grievances of the
customers more effectively. Service to clients will also be
improved.
Source: Various NBP information circulars No: and date not available
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3. FOREIGN TRADE AND OPERATION
National Bank of Pakistan played an avtive role in
handling the countries export and imports.
The growth of international business operations
depends causally and expansion of foreign contacts. The bank
already has 22 overseas branches in important business
located areas of the world. The NBP also looking forward to
open some new branches in foreign countries.
Errors are also under way to strengthen out
relationship with banks in central Asia and to establish joint
ventures with the bank of that area political and financial
stability is restore. National bank will try to establish branches
there.
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PROGRESS IN ISLAMIZATION OF BANKING
After the introduction of profit and loss sharing
scheme on a limited scale in January 1981. The Federal
Government in 1984 announced a major policy decision that by
the end of June 30 1985 all the domestic operated banks and
financial institutions will be on NIB system. This objective has
been achieved from 1st July 1985; all banking operations have
been switched over to NIB system. In the final stage from July
1, 1984 saving deposits have been convert on profit and loss
sharing basis from this date on words the bank is not accepting
fixed period deposits on interest basis.
It should not be considered the end of the mission as
mush more remains to be achieved . Until June 1985, none
interest basis investment opportunities were more, while NIB
liabilities were comparatively less. But now after complete
switch over the reverse in the reverse in the position. But
further continuous research and dedicated efforts are
necessary art national level so that Pakistan may present,
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before the world a system which is really new, dynamic and in
accordance.
Source: Soulat Hussain (Admin. Manager)
CHAPTER # 04
TRAINING AND FACILITIES TO STAFF
1. TRAINING TO STAFF
In 1949, the first year of operations the NBP has one
hundred employees one its payroll but with in two years this
number had grown to 1505 by 1960 the figure has risen to
5023 and now in 1996 it is the order or 20694.
During the first ten years the NBP trained its own
staff through a series of training programme both for junior
officers and clerical staff. By 1958 how ever it was obvious that
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one thins more comprehensive was needed and the bank
established a staff college Karachi. Three mote colleges at
Islamabad, Lahore and Peshawar, setup later. These colleges
provide course of instructions, supervisor personnel and clerks
to meet the Banks ever growing trained personnel. This needs
springs not only from the steady grown for the banks business
but also to replace wastage due to retirement resignation, ill
health or death.
The staff college receives junior bank officers for
further training in banking the course lasting from six to nine
weeks with about twenty five students in each course.
The staff college course are designed not only to
impart technical instruction, but also develop qualities of
judgements decisions, leadership and management, since
these student are likely to be those men who may expect to
the seniors most executive positions the bank has to offer.
The bank also deputes officers to attend banking
seminar both in Pakistan and abroad and it attaches great
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importance to the exchange of ideas information and
knowledge which can most use fully accure from these
gatherings.
In its position the National Bank has considerable
responsibility in ensuring that the country is well represented
at meetings of bankers at domestic and international level.
2- SALARIES AND FACILITIES TO STAFF
As an employer NBP is also deeply conscious of as
responsibilities and act it be said that at the out set, consider
its self a good employer. Its seales of pay terms of services,
staff benefits and amenities compare very well with instruction
of similar stature in Pakistan.
The result is that employment with the bank has
come to be regarded as some thing of prize. The scale of pay
and allowances for officers and staff are revised from time to
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time as need grows. In addition employment with bank
personable and bonuses are regularly paid.
The bank provides free medical treatment for all its
employers, their families and dependent parents. A senior
member of the medical profession acts as Medical Advisor and
medical consultant.
Source: Mr. Noman Ahmed
Source: Mr. Khadim Ali Baloch
The bank pays school fees for the children of all the
supervisory, electrical and subordinate staff and this facility is
extended to college fees also.
To meet the problem of fining suitable residential
accommodation in the hig cities. NBP has had recourse to
several measures in Karachi and Lahore for instance the bank
has constructed residential quarters. NBP has granted loans on
easy terms to members of staff to enable them to construct
houses of their own.
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To solve the problems of conveyance for its
employees the bank makes advances to staff for the purchase
of cars motorcycles and cycles.
The bank has provided finance for the establishment
of sports clubs and staff recreation centers, to enable staff
sport clubs and other suitable recreational activities to flourish.
Co-operative stores and subsidized canteens help the lower
paid categories to get the best value form their carnings.
CHAPTER # 05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE
OPERATED BY NATIONAL BANK OF PAKISTAN
The bank accepts the following types of deposits.
1. Current deposits
2. PLS Saving deposits
3. Fixed deposits account (Time Deposit)
4. Foreign Currency Account
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1. CURRENT DEPOSIT
For current deposits NBP open the account in the
name of individual proprietary firms, partnership firm, private
limited companies clubs, association societies and other
institutions. The account can be operated by single or two
more persons jointly as the instructions may be given at the
time of opening the account.
If the person who wants to open the account is not
in position to sign or signature is not firm or shaky the bank
requires is photographs and he has to come in the bank at the
time of withdrawals of his deposits.
The initial amount of deposits with which he can
open the account usual not be less then Rs.1000/-
But his restriction is not imposed to the accounts of
charitable institutions and the account opened in the month of
closing i.e. June & December.
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Source: perveiz ali khawaja (OG-III)
2. PLS SAVING ACCOUNTS
The silent features or profit and loss sharing saving
accounts to be opened in NBP as under.
1. These accounts can be opened by individuals in their
own single are joint name. The PLS saving accounts
can also be opened for provident fund or other
benevolent funds of companies, firms, organizations
of welfare and educational institutions.
2. PLS saving account can be opened with an minimum
amount of Rs. 500/- only
3. Money can be with drawn form PLS saving account
only through cheque.
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4. To share in the profit a minimum balance of Rs.500/-
must be maintained a account. The minimum
balanced on sixth and last of month will qualify for
the profits.
5. The profit will be calculated on the basis of monthly
minimum balance for the period of six months i.e.
from January to June and July to December
6. The head office of NBP determines the profits or loss
on PLS saving deposits and advice its branches the
rate and time of distribution of these profits
concerned PLS saving account.
7. With drawls from PLS saving accounts are allowed
not oftener then 8 time in a calancer month and for
a total amount not exceeding Rs. 1500/- for
withdrawal of a large amount seven days not in
writing is required to be given. This notice shall not
how ever affect the monthly with draw ordinarily
allowed. In the even of contravention of rule.
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depsositors shall forfeit his right to share profit for
he notice period shall be deducted from his total
profit earning products.
8. The shall be no restrictions on maintaining the
maximum balance in PLS saving account.
9. On the fist of Ramzan every year the Zakat 2.5% will
be recovered from the deposits on the balance of
that day. But if depositors give declaration of Zakat
or he is non-mulsim no Zakat will be recovered from
him in the same day Zakat is not recovered from
account in which the balance are below upto
prescribed limit as declared by the administrator of
Zakat Pakistan Act system of accepting deposits has
been stated in NBP since 01-01-1981.
Source: Mr. Nisar Ahmed Qazi (OG-III)
Source: Mr. Imtiaz Ahmed (OG-III)
3- PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED
DEPOSIT A/C
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In the case of fixed deposit account deposit is made
for a fixed period and a money deposited can be with drawn
before the expire of period fixed or before giving an advance
notice to the Bank. Fixed deposit caries a higher rate of interest
than the other type of bank account and the rate of interest
rises with the length of the period and the amount of deposit.
One opening a fixed deposit account the bank grants
to the depositor a fix deposit (FDR) which is not transferable to
any other person. When the depositor with drawn the receipt
must be handed back to the bank.
The silent features of profit and loss sharing term
deposit excepted by NBP are given as under.
1. The PLS term deposit are excepted from individual in their
own single or joint names, companies firms and other
organization.
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2. The PLS term deposit receipt are issued for any amount.
There is minimum or maximum limit or deposits in a
single term deposit account.
3. The term deposit can be made by tendering cash only.
4. PLS terms depositors may be allowed some facilities
against the security of these receipt credits, after making
Lien on the relevant receipt and subject to recovery of a
service charge.
5. Under term deposit scheme the depositors not cease to
earn the profit immediately, after the respective maturity
date, but they have been afford a liberal facility. In case
the depositors said to with draw their terms deposits on
maturity their funds will remain temporarily in used and
on profit earned a responsible share would occur to such
over due PLS terms deposits at the rates declared on PLS
sharing account.
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6. The head office of the bank determine the profit or loss on
PLS terms deposit at by any one intervals i.e. the end of
June and December each year and payment of profit to or
deduction of loss if any from the PLS terms deposit is to
be made the deposits for longer period will earn a little
more profit then those of shorter period deposits.
7. The total profit upto Rs.950/- is exempted from income
tax
8. In the case of encashment before maturity but after
completion of months profit will be paid for the entire
period for which the deposit remained with bank at the
rates payable for the respective period to the PLS saving
account after deduction of the Zakat if any.
9. In PLS term deposit expired and the depositors request
with in one month after the expiring date, for investment.
The PLS terms deposit will be reinvested for the desire
period from the date immediately following expiring date.
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10. Zakat or the face value PLS term deposit will be recoverd
as may time as the valuation dates (i.e Ist Ramzan) falls
between the date of issue and the date of expiry of the
deposit.
Source: Abdul Hameed Bhutto (OG-III)
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4- FOREIGN CURRENCY ACCOUNT.
NBP has also introduced foreign currency accounts
for Pakistan and foreign Nation in Pakistan and abroad. This
scheme assures its customers on better profit and superior
service.
1. It offers Pakistani or foreign National to operate a foreign
currency A/C with any one of their authorized branches
spread all over the country.
2. Deposits of this accounts will be acceptable in all
convertible currency but account will be maintained on
the customers choice in USD Dollar, pounds German Mark
or Japanese Yen.
3. Deposits may be made in the forms of remittances in
foreign currencies.
Travelers cheque on the bank counter will be accepted.
4. The customer can make with drawls and transfers to any
where in the world.
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5. All the deposits and profits in the customers foreign
account are except from Zakat income or wealth tax.
6. The customers sources are protected from any scruitny
of concerned authorities.
The NBP has over 1400 branches at home and
abroad of these more than 100 branches are authorized and
fully equipped to deal with all kinds of foreign currency
transactions.
NBP has worldwide network of branches and it has
associated in Arabia bank, All Jazria (26 branches) and national
exchange company in UAE to facilitate the customers in
Pakistan, Saudi Arabia and UAE.
Source: Atta Hussain Rajpar (OG-III)
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3- FUTURE OUT LOOK OF NATIONAL BANK.
NBP is fully aware of the developments taking place
in the world as well as the changes occur in the economic and
social condition with in the country. The bank is determined to
meet new challenges by redefining its goals and strategy as
well as by the adjustment of its operational policies.
The Bank planning to institute major improvements,
especially in customer service launch innovative products to
ensure that the bank continues to play a dynamic role in the
development of the country.
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CONCLUSIONS
At the completion of the business internship the
interence draws the following:
1. It appears a lengthy process of sanctioning
advance.
2. It looks the staff member are not properly
trained
3. It seems the promotion are not given in the due
time.
4. It appears that large amounts paid on
administration cost.
5. It shows that there is lack of recovery system
6. It seems that there is no net working.
7. It seems that there shall be a great the rush
days for the customers as well as for the staff
members If the No of counter are limited or very
few
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8. It might not be possible for every borrower to
repay the money in due time.
SUGESTIONS
On the basis of conclusion interence draws the
following suggestions
1- It is suggestion that the process should be short in order
in save time money energy and stationary etc.
2- It is proposed that proper training be perovided to the
staff members that will ultimately increase theperformance of Bank over all.
3- It is advised that promotion be given in due time because
of interest to work satisfactory.
4- It is consulted that bank should reduce its large expenses
in order to increase the value of bank.
5- It is suggested that reasonable steps should be taken to
recover all absolute advances.
6- The NBL should introduce the use of computers in order to
confront with the nectic business activities. it will also
help to reduce the extra load of manual work.
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7- Extra counters should be brought in order to facilitate
during the rush days the difficulties faced by the bank
staff as well as the customers.
8- The period of repayment of the loans should be extended.
REFERENCES
1.
By Greener Michael The Penguine Business DictionaryEdition 1995 Page No.10
2.
By Muhammad RaufBeg
Money and Banking 2nd Edition1993 Page No.55.
3.
By Mukhtiar Ahmed Introduction to Money andBanking Ist Edition 1995 PageNo.60
4.
By Israr-ul-Haq Banking Law and Practice
5.
By Dr. Syed Anwar Ali Banking Ist Edition Page No.02
6.
Annual Report of NBP2000
INFORMED BY
1. History of National Bank of Pakistan,2006 by: (N.B.P
Management Division)
2. perviez Ali Khawaja (Manager Admin)
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3. http://www.nbp.com.pak
4. Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)
5. Shafqat Ali Mahesar (OG-III)
6. Mr. Khadim Ali lund Baloch (OG-III)
7. Saeed Ahmed Khan
8. Altaf Ahmed (OG-III)
9. Syed Qamar Hashmi (Assistant)
10. Aijaz Ali Rathore, (OG-III)
11. Miss Razia (OG-III)
12. Rafique Arbaba (OG-II)
13. Syed Shah Nawaz (Assistant )
14. Moinuddin Muallian (OG-III)
15. Mohammad Atiq Khan (OG-I)
16. Various Bank information circulars. No & Date N/A
17. Various NBP information circulars No and date not
available
18. Islamizationa of Banking
19. Mr. Noman Ahmed
20. Mr. Khadim Ali Baloch
21. Waqarullah Khan (OG-III)
22. Mr. Nisar Ahmed Qazi (OG-III)
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23. Mr. Imtiaz Ahmed (OG-III)
24. Abdul Hameed Bhutto (OG-III)
25. Atta Hussain Rajpar (OG-III)
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CONTENTS
CHAPTER NO. 1
INTRODUCTION
1. Introduction 01
2. History & Management of National Bank of Pakistan04
3. Objective of National Bank of Pakistan
07
4. Functions of National Bank of Pakistan
08
5. Purpose of Study
09
6. Methods of study
11
7. Limitation. 13
CHAPTER NO.2
INTERNATIONAL FEATURES OF NATIONAL BANK OF
PAKISTAN
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1. International Features of National Bank of Pakistan
15
2. Law Recovery, Litigations Division
19
3. Organizational Structure 24
4. Departments Functioning under National Bank of Pakistan
25
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CHAPTER NO.3
ACTIVITIES OF NATIONAL BANK OF PAKISTAN
1. Computerization
30
2. Decentralization
30
3. Foreign Trade & Operation 32
CHAPTER NO.4
TRAINING AND FACILITES OF STAFF
1. Training to Staff 34
2. Salaries & Facilities of staff
36
CHAPTER NO.05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE
OPERATED BY NATIONAL BANK OF PAKISTAN.
1. Current Deposit 38
2. PLS Saving Account 39
3. PLS Term deposit Receipt (PLS TDRS) OR Fixed Deposit
Account 42
4. Foreign Currency Account
47
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5. Future outlook of National Bank Pakistan
49
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CONCLUSION AND SUGGESTIONS
1. Conclusion
50
2. Suggestions
51
3. References
52
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INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF SINDH, JAMSHORO
C E R T I F I C A T E
This is to certify that Business Internship Report on
NATIONAL BANK of Pakistan, has been prepared
SANTOSH KUMAR S/O DAYAL DAS
Under my guidance for the partial requirement for the
degree of Master of Business Administration. It is also
certified that the work is found original and the research has
been inetienlously carried out and fulfils all the requisite
conditions.
Sir. ASLAM PATHAN Dr. Anwar Ali Shah G. SyedAssistant Professor &
Internship Guide Professor & DEANIBA, University of Sindh, IBA, University of Sindh
Jamshoro Jamshoro
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D E D I C A T I O N
This humble effort is
dedicated
to my beloved
parents,whose love and
efforts
can never be
forgotten.
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ACKNOWLEDGEMENT
Praise to Almighty Allah, the omnipresent, the
Omnipotent, the Omniscient, who bestowed upon me the
potentially and ability to accomplish this work.
No sequence of works can express my sincere gratitude
to our respected Professor and Director, Institute of Business
Administration Dr. Anwar Ali Shah, G.Syed and guide Mr.
Perveiz Ali khawaja without whose valuable guidance, rich
experiences, helpful advice, useful suggestions and
constructive criticism and comments. I could not have been
able to complete this piece of work titled as Business
internship.
I have honour to experess my heart-full gratitude to the
executive and staff member of National Bank of Pakistan,
Market Branch Hyderabad, who kindly gave them acceptance
to the topic of my Internship Report along with many useful
suggestions which encouraged me to complete my work.
Thanks for all those who extend their cooperation for
conducting the work of Business Internship
SANTOSH KUMAR
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MBA (PASS) FINAL 2006Institute of Business
Administration
University of Sindh Jamshoro