Final Intern Report

55
2014 Internship Report 2014

Transcript of Final Intern Report

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2014

Internship Report 2014

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Internship Report 2014

Table of Contents:

Topic Page No:

Title page 4

Letter of Undertaking 5

Scanned Copy of Internship Report 6

Dedication 7

Preface 8

Acknowledgement 9

Executive Summary 10

Brief History of NBP 11-12

Over view of the organization 12

Introduction 12-13

Vision & Mission & Goals 14-17

Nature of the Organization 18

Business Volume 18

Product Lines 19

Competitors 20

Board of Directors 21

Financial Highlights 22

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Organization Structure 23

Organizational Hierarchy Chart 23

Number of employees 24

Main Offices 24

Introduction of all departments 24-25

Organizational Structure 26

Plan of internship program 27

Brief introduction of branch 27

Names of Departments 27

Starting & Ending Dates of internship Program 27

Training Program 28

Detail Description of operations/activities 28-29

Detail Description of the tasks assigned 29-31

HR Department of NBP 32-33

Structure of the HR department 34

Department Hierarchy 34

Number of employees working under HR department 34

Mention any sub-department if exists under HR department 34

Functions of HR department 35

Human Resource Planning & Forecasting 35-36

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Employees Recruitment & Selection 36-37

Training & Development 38

Performance Management 39

Employee Compensation & benefits 40-42

Organizational career management 43

Labor management Relations 44

Critical Analysis 45

PEST Analysis 46

Swot Analysis 47-48

Corporate Social Responsibility (CSR) 49-51

Conclusion 52

My Learning 52

Recommendations 53

References & Sources 54

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Internship Report

By

Shabnam Naz

MBH-12-36

MBA (HRM)

4th Semester

2012 – 2015

Submission Date of Internship Report

15-09-2014

B Bahauddin Zakariya University

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Scanned Copy Of Letter of undertaking

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Scanned copy of internship certificate

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Dedication:

ALMIGHTY ALLAH SUBHANA TALAH

&

HIS HOLY PROPHET

MUHAMMAD

(Peace be upon him)

&

ENDLESS LOVE OF MY

PARENTS MY TEACHERS

WHOSE PRAYERS HAVE ENABLE ME

TO COMPLETE MY PROJECT AND IN EVERY

FIELD OF MY LIFE

&

SPECIALLY SIR MUSTABSAR

&

MY BROTHER & SISTER WHO SUPPORTED ME A LOT.

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Preface:

Master in Business Administration is an practical experience that is an important

part to give students an opportunity to have experience of practical field. Unless the

students experience the novelty of practical work, their knowledge of what they

study in theoretical courses remains incomplete. The most important point in an

Internship Program is that the student should spend their time in a true manner and

with the spirit to learn practical orientation of theoretical study framework.

This report is on my experience at National Bank of Pakistan. In this report I have

tried my best to give details about the Bank’s working and the functions of different

departments of the bank.

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Acknowledgement

All the Praise to Allah, the Most Merciful

I am grateful to almighty Allah for enabling me to complete the work presented in this report. It is

through his unending mercy that this task moved towards success. This is my first effort of my

carrier.

I am thankful to the staff of NBP Main Branch Multan. Specially officers who give me the detail

information of their work in NBP. I am also grateful to my honourable teachers for teaching me

so that I observe things practically which I read in books. I always wish prosperity for them and

for this institution.

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Executive Summary

National Bank of Pakistan is a government Bank. National Bank of Pakistan was established on

November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope with the

crisis conditions which were developed after trade deadlock with India and devaluation of Indian

Rupee in 1949. The nature of responsibilities of the Bank is different and unique from other

banks/financial institutions. The Bank acts as the agent to the State Bank of Pakistan for handling

Provincial/Federal Government Receipts and Payments on their behalf. The Bank has also played

an important role in financing the country’s growing trade, which has expanded through the years

as diversification took place. Its head office is in Karachi. It has over 1256 branches all over in

Pakistan.

The main purpose to done internship in NBP is to understand that how any organization deal with

their customers and how they serve in banking sector of Pakistan. During my MBA I learn a lot

but never got practical experience to work in any organization. And it is also a compulsory part of

my education (MBA) to get practical experience. So my department IBF gave me this opportunity

to avail practical experience. Specially Sir Mustabsar that are encourage me everytime. And I had

avail a chance to done my internship in NBP Main Branch.

During my eight week’s internship I learn some personal practical experience of professional life.

I work in different departments of NBP such as: credit department, remittance department,

operation department, deposit department, government sector, foreign department, advance salary

department. So in my internship report I discuss the NBP as a whole. But as per my area of

specialization is HRM so my report is basically the analysis of the employees position and

performance, structure of HR department, functions of HR department, HR planning &

forecasting, Employees recruitment & selection, Training & development, performance appraisal,

Labor management relations, SWOT Analysis, Conclusion, Recommendations. During working

with NBP employees it was a great experience for me to work in NBP and it was a great

opportunity of professional insight which helps me in future.

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Brief History of the NBP:

1949 National Bank of Pakistan (NBP) was established under the National Bank of

Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent of the Central

Bank wherever the State Bank did not have its own Branch. It also undertook Government

Treasury operations. Its first branches were in jute growing areas in East Pakistan. Offices

in Karachi and Lahore followed.

1950 NBP established a branch in Jeddah, Saudi Arabia.

1955 By this time NBP had branches in London and Calcutta.

1957 NBP established a branch in Baghdad, Iraq.

1962 NBP established a branch in Dar-es-Salaam, Tanganyika.

1964 The Iraqi government nationalized NBP's Baghdad branch.

1965 The Indian government seized the Calcutta branch on the outbreak of hostilities

between India and Pakistan.

1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.

1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong.

At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern

Mercantile Bank and with Eastern Bank Corporation.

1974 The government of Pakistan nationalized NBP. As part of the concomitant

consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947).

1977 NBP opened an offshore brain Cairo.

1994 NBP amalgamated Mehran Bank (est. 1991).

1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.

2000 NBP opened a representative office in Almaty, Kazakhstan.

2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to

operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan

International Bank, of which NBP would own 45% and United Bank 55%.

2002 Pakistan International Bank renamed itself United National Bank Limited (UNB).

The ownership structure of the UNB remained as before. The only change to the

shareholding structure is that UBL had recently been privatized in Pakistan and was now

owned 49% by the Government of Pakistan and 51% by a joint foreign consortium of Abu

Dhabi.

2003 NBP received permission to open a branch in Afghanistan.

2005 NBP closed its offshore branch in Cairo.

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ISLAMIC BANKING:

First Islamic banking branch of NBP started its operations in Karachi on December 15, 2006.

Two more branches started operations by the end of 2007 in Peshawar and Lahore.

At present, eight Islamic banking branches are functional all over Pakistan having Group

office at Karachi, Pakistan.

Mufti Abdul Sattar Laghari is a Shariah Advisor.

Mr. Shafiq Khan is newly appointed Group Chief of the Islamic Banking Group.

Mr. Sarfaraz Ahmed is Business Head.

Mr. Syed Muhammad Shahid is Operations Coordinator and Master Trainer for HR.

Engr. Muffaz Rana is Operations Officer at Islamic Banking Branch - 2140 - Karachi. He

has a Telecommunication Engineering degree from FAST-NU, MBA in Finance from

SZABIST, NIBAF in IBCC from State Bank of Pakistan, PGD in IBF from Centre for

Islamic Economics & JAIBP from Institute of Bankers Pakistan accredited by UK’s

Chartered Banker Institute.

Source: http;//en.wikipedia.org/wiki/National Bank of Pakistan

Overview of the Organization:

a) Introduction:

The National Bank of Pakistan (NBP) is a major Pakistani commercial bank with headquarters

in Karachi. Although state-owned it operates as commercial bank, while still continuing to act as

trustee of public funds and as the agent to the State Bank of Pakistan in places where SBP does

not have a presence. The bank provides both commercial and public sector banking services. It is

a lead player in the debt equity market, corporate investment banking, retail and consumer banking,

agricultural financing, treasury services. As of 2012 it has 1,280 branches across Pakistan with

assets of approximately USD 12.293 billion. It also operates a number of office overseas that

include Beijing, Tashkent, Chicago, London and Toronto. Its subsidiaries include NBP Capital,

NBP Modaraba Management Company, NBP Exchange company, Taurus Securities, NBP Almaty

and others.

National Bank of Pakistan has developed a wide range of consumer products, to enhance business

and cater to the different segments of society and meet its social responsibilities. Some schemes

have been specifically designed for the low to middle income segments of the population. It has

implemented special credit schemes like small finance for agriculture, business and industries,

administrator to Qarz-e-Hasna loans to students, self-employment scheme for unemployed

persons, public transport scheme. The Bank has expanded its range of products and services to

include Shariah Compliant Islamic Banking products. It has also put in place a remittance service

for overseas Pakistanis to send their money back to Pakistan.

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The bank also runs the Annual Awards for Excellence in Literature that confer awards to the best

books in Urdu and in all prominent regional languages. The Bank is also the largest sponsor of

sports in Pakistan.

The Bank saw significant growth between 2000 and 2006. In 2006, total assets were estimated at

PKR 635 billion, while deposits have grown to nearly PKR 502 billion. Pre-tax profit rose to PKR

26 billion. Earnings per share have jumped to PKR 24.01. The increase in profit was achieved

through strong growth in core banking income. Interest income increased by PKR 10 billion

through growth in the loan portfolio as well as increase in spreads. Advances increased by PKR

48 billion to PKR 316 billion.

Awards & Achievements:

“Bank of the Year” awarded for the year 2010 by the world renowned “The Banker”

magazine owned by the Financial Times Group, London.

NBP is awarded “President of Pakistan Trophy”, a top slot award by Federation of

Pakistan Chambers of Commerce and Industry in 2010.

Also awarded by the Lahore Chambers of Commerce and Industry in 2010.

Among the global leading banks, NBP is the only Pakistani bank appearing in top 500

banks of the world in “The Banker” magazine owned by the Financial Times Group,

London.

World’s Best Foreign Exchange Bank 2008” awarded by the world’s leading

financial journal “Global Finance”. Etc

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b) Vision & Mission:

Vision To be recognized as a leader and a brand

synonymous with trust, highest standards of service

quality, international best practices and social

responsibility.

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Mission NBP will aspire to the values that make NBP truly

the Nation’s Bank, by:

Institutionalizing a merit and performance based

culture.

Creating a distinctive brand identity by providing

the highest standards of services.

Adopting the best international management

practices.

Maximizing stakeholders values.

Discharging our responsibility as a good

corporate citizen of Pakistan and in countries

where we operate.

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Core Values Highest Standards of Integrity

Institutionalizing a teamwork and performance

culture

Excellence in services

Advancement of skills for tomorrow’s challenges

Awareness of social and community

responsibility

Value creation for all stakeholders

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Goals To enhance profitability and maximization of

NBP share through increasing leverage of

existing customers base and diversified range

of products.

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c) Nature of organization (NBP):

National Bank of Pakistan is an organization that accepts deposits and repays to its customers on

demand. Bank borrows money at lesser rate of profit and lends it to the borrowers at a higher rate

of markup. Bank cannot lend all the money that has been deposited with it. It has to keep certain

amount of the total deposits in cash in order to meet the cash requirements of the individuals and

business concerns. It has to keep a certain ratio between liquidity & profitability to run its business

smoothly and efficiently. National Bank of Pakistan is an established bank and also a commercial

bank. NBP make financing on the projects including technical assistance, term finance and short

& long term loans to the business industry. NBP is also financing on seasonal crops like cotton,

wheat, rice, sugarcane, tobacco etc.

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

standards of achievements. It is the major business partner for the Government of Pakistan with special

emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies,

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

internationally and representative offices.

National Bank of Pakistan (the Bank) was established under the National Bank of Pakistan (NBP)

Ordinance, 1949. The Bank provides all types of banking services to the government and private sectors.

The Bank also handles treasury transactions for the Government of Pakistan as agent to the State Bank of

Pakistan (SBP). The Bank has 1404 (1999: 1408) branches in Pakistan and 24 (1999: 23) overseas branches

(including the Export Processing Zone Branch). Under a Trust Deed the Bank also provides services as

trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT in

consideration for annual service charges and commission.

BUSINESS VOLUME:

Number of employees (designation vise break up)

DESIGNATIONS NO.OF EMPLOYEES

Executives 800

Officers 6940

Clerical 4840

Non-clerical 2850

Others 1460

Total Employees 16,890

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d) Product Lines:

Established On 1949 under NBP Ordinance of 1949

Branches 1,289 and 22 Overseas branches

Type Semi Government

Manpower More than 16,457

Industry Banking

Slogan The Nation’s Bank

Area served All over the Pakistan and other countries

Head Office NBP Building, I.I. Chandigarh Road Karachi,

Pakistan

Products

Protection Shield Home

Pak Remit

Kisan Dost

Cash n Gold

Investor Advantage

Cash Card

Advance Salary Saibaan

Karobar, Premium Aamdani,

Premium Saver etc.

Website www.nbp.com.pk

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e) Competitors:

Competitors of NBP in Pakistan are:

The Bank of Punjab

Askari Bank Limited

Bank Alfalah Limited

Allied Bank Limited

Bank Al-Habib Limited

Faysal Bank Limited

United Bank Limited

Standard Chartered Bank Ltd

Silk Bank Limited

MCB Bank

Habib Bank Limited

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f) Board of Directors:

Chairman: Mr. Muneer Kamal President: Syed Ahmed Iqbal Ashraf

Mr. Tariq Kirmani Mr. Shahid Aziz Siddiqi Mr. Zahid Hussain Wasiq Mehmood

Mr. Farrakh Qayyum Rana Assad Amin Dr. Shujat Ali

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Organization Structure:

a. Organizational Hierarchy Chart:

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b. Number of employees:

More than 16,457 employees are working in National Bank of Pakistan.

c. Main office:

Main office is in Karachi.

In Domestic 1256 Branches.

d. Introduction of all departments:

1. Account Opening Department:

These deposits are lent out to different parties. Such deposits creation is

done through opening account in bank. Accounts are open by the followings:

An Individual

Business Partners

Government Sector

2. Clearing Department:

This department defined as: “A system by which banks exchange cheques

and other negotiable instruments drawn on each other within a specific area

and thereby secure payment for their clients through the clearing house at

specified time in an efficient way”.

3. Remittance Department:

This department deal:

Demand Draft (DD)

Pay Order (PO)

Outward bills for collection (OBC)

Inward bills for collection (IBC)

4. Cash Department:

All cash deposits and withdrawals entries of account holders of NBP.

5. Accounts Department:

This department is responsible for budgeting and all the transactions that are take

place in the bank like physical or computer generated reports and save it as a

physical prove that these transactions are take place in the bank.

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6. Credit Department:

This department deal:

Youth Loan

Gold Loan

Industrial Business Loan

7. IT Department:

This department deal:

Verification of N.I.C online for the purpose of account opening

Computerize record keeping of Accounts

Generate report of daily transactions

8. Foreign Exchange Department:

This department deal:

Foreign Currency Accounts

Imports

Exports

9. Advance Salary Department:

This department deal in to give advance salary to government employees.

10. HR Department:

The Bank has challenging work environment where merit & performance help the

individuals to explore their true potential. NBP is the employer of choice. The

whole NBP family comprises of committed and dedicated members with passion

to serve in their respective functional areas. HR department work to provide

benefits to the employees. The responsibility of HR department is to check the

employees performance on daily basis & select rewards according to their

performance level. All the functions of HR are apply in NBP. These functions are:

Recruitment & Selection

Interviews

Training

Compensation & Benefits

Performance Appraisal

Promotions

Motivation

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e. Comments on organizational structure:

In any management of the banks, the board of directors is at the top of the controlling body.

But in NBP since there are no private shareholders now, so there is no general meeting of

the shareholders and no elected directors.

Board of Directors:

The board has limited administrative powers because after the Nationalization Act 1974,

most of powers are transferred to the Banking Council and Executive Board.

Executive Board:

The general direction & supervision of the affairs of commercial banks lies in their

respective Executive Boards.

Chief Executive:

He is the administrative head of a bank and presides over the meetings of Executive Boards.

Divisional Chiefs:

Each division of the bank is placed under the supervision and control of Divisional Chief

(also called the Senior Executive Vice President or Executive Vice President).

Provisional Chiefs:

Each headquarter is situated in each province e.g: Sindh (Karachi), Punjab (Lahore),

Balochistan (Quetta), Khaibar Pakhtokhawan (Peshawar).

Circle Executive:

Directly under the control and supervision of Chief Executive.

Branch Manager:

Each branch manager has to control his branch affairs.

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Schedule of My Internship Program I have worked with the Multan Main Branch of National Bank of Pakistan situated at

Kutchehry Road Multan. Main Branch consists of many administrative departments which

control the specific region under the Main Branch. It also coordinates with the Head Office.

Names of Departments under Main Branch:

Human Resource Department

Credit Department

Administrative Department

Operation Department

Deposit Department

Foreign Exchange Department

Remittance Department

Clearing / Government Department

Advance Salary Department

IT Department

Etc

Starting & Ending Dates of each Department in Internship Program

Sr Names of Departments Duration

From To

1 Credit Department 03-07-2014 19-07-2014

2 Remittance Department 21-07-2014 01-08-2014

3 Account Opening Department 01-08-2014 05-08-2014

4 Foreign Exchange Department 06-08-2014 12-08-2014

5 Government Department 13-08-2014 18-08-2014

6 Deposit Department 19-08-2014 21-08-2014

7 HR Department 21-08-2014 21-08-2014

8 Advance Salary Department 25-08-2014 25-08-2014

9 Administrative Department 25-08-2014 26-08-2014

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Training Program:

Detailed Description of the operations / activities:

Deposit Section:

Cheque Passing

Signature Verification

Last Day Book Checking

Security Documents Maintenance

Arrangements for Account Deposit

Advance Salary Section:

Giving advance salary (20 salaries).

Foreign Exchange Section:

Foreign Currency Accounts

Foreign Currency Accounts Maintenance

Foreign Currency Inward Remittances

Foreign Currency Outward Remittances

Account Opening Section:

Individual Accounts

Joint Accounts

Bills & Remittances:

Demand Draft (DD)

Telegraphic Transfer (TT)

Mail Transfer (MT)

Clearing Section:

Inward Clearing

Outward Clearing

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Government Section:

Pension Payments

Tax Collection

Credit Section:

Youth Loan

Loan on Gold

Loan for Industrial Business

Administrative Section:

Stationary Expenses

Employees related Benefits

Other Expenditures

HR Department:

Apply all Functions of HR

Development of Employees

Unions of NBP

Detailed Description of Tasks/Duties:

During my internship I have completed the following tasks / duties:

Credit Department:

Maintaining files of PM Youth Loan. Complete Youth Loan Files by Punching, Naming,

Stamping, Arranging in ascending order & verifying customer’s signature. Guiding or

dealing customers about PM Youth Loan. Making profile information on page of one by

one customers.

Worked 8 weeks in Gold Loan Section. Making Debit vouchers of three types. Making

Demand Draft slips of different cities. Then list out these DD’s details in register. Writing

vouchers of customer’s detail, then stamping and then photocopy these vouchers to keep

record. Also making posting letters of 5 ledgers (registers) then keep vouchers in it & close

it by gum & stamping on it. Checking lists of Nill accounts & select the running accounts

from the register. Send message to all customers to tell them that there time period of loan

is come to an end so that they come & return the loan or renewal their accounts.

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Sir Tariq Ansari only give introduction of their work because he is very busy & head of

credit department. He maintain all documentation of customers then punching in files &

computer then visit those customers business place to verify them then after a lengthy

procedure he pass out these files for loan.

Remittance Department:

Work in online money transfer section. Helping the sir in giving hard copy of receiving

amount of customers. See all the procedure of receiving amounts that are sending by the

customer’s family members who live outside the country.

Demand draft section only do manual working by list out the cheque’s detail in register.

Account Opening Department:

See all the procedure of opening accounts in PC. Getting all the details about individual

& joint opening account. See all the manual registers & see the working. Then sir tell

about the ATM machine working & about ATM card issuance.

Foreign Exchange Department:

During the working in this department I have maintained the foreign currency accounts

in manual register. Only do manual working in this department. Sir Waseem tell about

the LC and then give us to see real documents & check out the details.

Government Department:

In this department I do not work only officers give introduction of their work. This

department exists only in the Main Branches of NBP everywhere. Their main work is

to collect all the revenue and give details to the State Bank of Pakistan.

Also dealing in paid pensions to ex-government officials & take cash receipts of

chalans & fees and also work for tax collection.

Deposit Department:

Arranging the cheques in ascending order. And sir give introduction of their work. I

see their work that he has passed the cheques by verifying signature and account tally.

Then customers go to another officer who give them token and then they take cash on

their token numbers.

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I also do working in cashier department. I do very much manual working here 3 days.

Advance Salary Department:

Sir Kashif only gives introduction of their work. Tell that how they complete the

documentation of customer of advance salary. Only government employees take

advance salary. Minimum 3 months are required in this procedure.

Clearing Department:

I have seen the cleared cheques that belong to the Main Branch and was submitted in

other banks which is called the inward clearing.

I have seen the cleared cheques that were submitted the main branch but belongs to

some other banks which is called outward clearing.

Administration Department:

Sir Jewan Khan gives the introduction of their department. He deals all the expenditure

that a branch have and give benefits to employees etc.

HR Department:

Mam Rabia give detail introduction about HR department which is discuss in detail.

She tell me that the working of HR department is confidential so that I can’t work in

this department. She used SAP software in their PC.

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HR Department

Of

NBP

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Structure of HR Department:

HR Department Hierarchy

General Manager HR

Incharge HR

Executive HR

5 Officers of HR

1 Clerical Staff HR

1 NON Clerical Staff HR

Number of Employees in HR Department:

There are 10 employees under HR department of Regional Office Multan.

There is no sub-department under HR department.

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Functions of HR:

Human Resource Planning & Forecasting: HR department of National Bank of Pakistan forecast the demand and supply of workforce.

HR department systematically review the human resource and ensure that how much

number of employees are available in the time when needed.

1. Human Resource Planning Process:

Determine the organizational mission:

Organizational mission provides the National Bank of Pakistan’s business scope and

operations.

Scan the Organization environment:

Scanning the environment means to identify the Strengths, Weaknesses, Opportunities

& Threats that can NBP have to face. This is also called SWOT analysis.

Set Strategic Goals:

Set specific long term and short term goals and objectives. These goals are specific,

challenging and measureable.

Formulate a strategic Plan:

Strategic plan designed are the steps that formulate to meet the strategic goals and

departmental goals.

These are the steps of HRP process:

Determining the objectives

Defining skills required to meet objectives

Determine additional human resources requirements in light of current HR

Develop action to meet the anticipated HR needs

2. Forecasting HR Requirements:

This forecasting indicates the requirements of HR that can be needed by the National Bank

of Pakistan in future to achieve goals.

3. Methods to forecast HR needs:

There are four methods to forecast HR needs.

Zero-base forecasting:

Zero-based forecasting means that the NBP considers the current level of employment

as the starting point for determining the staff needs in NBP.

Bottom-up Approach:

To get aggregate forecast of employment needs this method is best because in this

method each successive level of the NBP starting with the lowest and forecast its

employee requirements.

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Mathematical Method:

NBP also uses mathematical forecasting Human Resource needs. It defines the

relationship between the demand and numbers of employees needed.

Simulation:

It is a technique for experimenting with a real world situation through a mathematical

model representing that situation.

Employees Recruitment & Selection:

Recruitment:

Recruitment is the process in which an organization discovers the potential candidates

under vacancies. To complete this process every organization has its own requirements and

policies.

According to the recruitment policy of NBP, the requirements are:

Candidate must be a citizen of Pakistan

He/she must be graduate

He/she have the required capabilities that is necessary in job

Sources of Candidates:

There are two sources of candidates. One is internal and other is external. Internal are

within the National Bank of Pakistan and external are outside of the National Bank of

Pakistan. Explanation is as under:

Internal Source:

Internal source means to fill the vacant vacancies by promoting the existing

employees working in NBP.

Some are the forms of internal hiring in NBP:

Within the bank Promotions

Job Posting

Contacts & Referrals

External Source:

External source means to hire employees from various external fields. In

this method jobs are offered through newspapers and internet and candidates apply

on the vacant posts. National Bank of Pakistan contact agencies or 3rd party to hire

employees for external source.

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Employee Selection Process:

Candidates apply against three posts and NBP scrutinized the application and calls

the eligible candidates for test and interview. Candidates who pass the test they

have call for group interview. The selected candidates have submit the following

documents in Head Office:

Bank Secrecy Bond

Educational Documents

Security Bond

Service agreement Bond

Selected candidates have to remain in probation period for 6 – 9 months.

NBP do recruitment through Institute of Bankers Pakistan (IBP). IBP is a subsidiary of

SBP.

IBP do short listing & conduct tests & then announce the results.

A group of panel of NBP take interviews from selective candidates & then select the regular

employees.

For contractual employees contact with outsourcing companies.

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Training & Development: Training and development is the main concern of HR department which leads to improve

the skills of employees and customer service and to maintain the standards of NBP.

For Training there are 4 staff Colleges of NBP all over the Pakistan, i.e.: Karachi, Lahore,

Islamabad & Peshawar.

Induction Training is a classroom training & this is for 21/2 months.

On the Job Training is for 2 or 8 weeks.

Contractual based employees not provide training.

PR (Potential Regulators): When SBP changes rules & regulations then give training

according to new regulations.

Training needs assessment:

Following assessments needs to conduct the successful training:

Customer satisfaction survey

Customer complains

New technology

Interview with managers

Self-assessments

Company records

Observation etc.

Junior officers and clerical staff trained through a series of training programs during

the first ten years. After 1958, NBP establishes staff colleges in Karachi, Lahore,

Peshawar, and Islamabad. These colleges train the growing strength of the employees

to meet the competition.

Employee Development:

Human Resource Department of National Bank of Pakistan operates to increase

existing skills of the employees in order to achieve its objectives.

National Bank of Pakistan has two training techniques:

First technique is to develop midterm plan to facilitate new clients and middle level

employees.

Second technique is to develop a long term plan for training and development to

enhance the career of high level employees.

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Performance Appraisal:

Only Supervisor do performance appraisal. He give grades accordingly the performance of

employees. These grades are as follows:

A: Outstanding

B: Very Good

C: Good

D: Satisfactory

E: Not Satisfactory

Profit Bonus

Eid Bonus

Settings performance standards and expectations:

Following are the conditions that can be consider when setting the standards of

performance.

1. Performance standards must be based on the job not on the person doing the job.

2. Performance standards must be established at the points which are achievable.

3. Employees must understand the standards of performance.

4. Employees and supervisors must accept the standards of performance.

5. Standards of performance should be time-oriented.

6. Performance standards must be written.

7. Performance standards must be flexible to accept the change or revision.

In NBP only supervisor judge the performance of the employees and give grade

according to the performance of employees then according the performance, the

performance appraisal would be made.

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Employee Compensation and benefits: National Bank of Pakistan compensate its employees in the following way:

Medical Facility for employer parents, wife & children.

House Building Loan

Motor cycle & Car Loan

Computer or Laptop Loan

Educational Facility for children that is the part of salary.

Scholarship facility for children

Retirement Benefits

Group Insurance

Death Insurance

Overtime pay

Profit sharing

Compensation Package: Compensation Package according to 2013 are as follows:

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Basic Pay - per month Rs. 2,258,000/-

House Rent Allowance - per month (55 % of Basic )

1,242,000/-

Gross Salary per month

(to be reviewed annually) 3,500,000/-

In case of fixed compensation for 3 years, monthly gross salary will be Rs. 4,000,000/- instead of Rs. 3,500,000/-

Utilities Utilities (electricity, gas, water, residence telephone(s) / mobile phone(s) and any other utilities pertaining to his residence) at actual.

Security Security arrangements to be provided by the Bank. Deployment of four (04) security guards i.e. two security guards on 12 hours shift basis at residence.

Vehicles, Fuel and Maintenance Two cars (one 3.5 litres and one 2.5 litres) provided by the Bank - Both vehicles fully insured and maintained by the Bank. President to purchase the cars at 10% of cost on expiry of contract or at written down value on separation.

Fuel for the Bank provided vehicles at actual.

Drivers Two (02) Drivers or Salary of Two (02) Drivers in lieu thereof @ Rs.25,000/- per month = Rs.50,000/- per month (on reimbursement basis)

Official Entertainment At actual

Domestic Staff Salary of Five (05) persons @ Rs.18,000/- per month = Rs.90,000/- per month (on reimbursement basis )

Mobile phones Mobile Phones provided by Bank.

Business Travel Overseas:

Domestic Travel:

Business class fare, 5 Star Hotel expenses at actual.

Per diem for overseas with a maximum of US$ 325 per day.

Economy Plus class fare, 5 Star hotel expenses at actual

Annual Leaves Annual leaves 30 days and Medical / Sick leaves 18 days per annum. Annual leaves may be accumulated, which is en-cash able on the basis of last drawn gross salary.

Medical/Dental Medical / Dental coverage for self and dependent family members within Pakistan and re-imbursement of all expenses at actual. Full fledged dental treatment facilities at cost.

Life Insurance Life insurance coverage to be provided by the Bank (Amount Rs.30.00(M).

House and Garden Maintenance House / Garden fully maintained by the bank at actual

House Furnishing Allowance Amount equivalent to one gross salary payable once during tenure of three years.

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Performance Bonus Performance Bonus of up to Rs.28 million for the first year of contract. This will be reviewed each year of the contract

(to be determined by the Board and approved by the shareholders) payable based on performance against key performance indicators to be mutually agreed.

Club Membership Club Membership (entry fee) for two clubs of incumbent’s choice to be paid by the Bank. Subscription / other charges of 3 clubs to be paid by the Bank

House Building Loan As part of the employment arrangement, NBP will take over the unpaid portion of the existing house loan availed by him.

Terms and conditions applicable as in NBP.

Generator Facility at Residence One Generator to be provided by the Bank at residence. Cost of fuel and maintenance to be paid by NBP.

End Service Benefits Gratuity to be paid at one month last drawn gross salary for each year of service. 6 months or more to be treated as completed year of service

Annual Salary Review Salary will be reviewed every year on the basis of the Bank’s performance determined by the Board and approved by the Shareholders.(if fixed compensation is opted for the full 3 years contract then no yearly compensation review)

Separation from Bank’s Service In case of Termination of contract:

Six months’ notice period or salary in lieu thereof.

In case of Resignation:

Three months’ notice period or salary in lieu thereof

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Organizational Career Management:

Employee Job changes:

Employee job change in National Bank of Pakistan is done under its civil rules and

regulations. Promotion and transfer is done under the civil service rules and

regulations.

Job changes with the organization:

NBP has designed many programs to meet the challenges of present day

requirements. Employees trained in a specific manners so that they could adopt new

job within the organization after acquire the training.

Promotion: In 1979, promotion policy introduced based on three parameters:

1. Qualification

2. Period of service

3. Standard of service

In NBP the rules of promotion are as follows:

After 3 years employees give promotions.

If 4 years are passing & employee give no promotion then give him/her seniority

promotion.

On the basis of Experience, Professional Qualification & Academic Qualification give

promotions to employees.

During my internship three officers are promote in which two officers are promote

from OG-III to OG-II & one officer is promote to OG-I to AVP.

Transfer:

Transfer are done to fill up the vacant positions to smoothen the working.

In NBP many employees of main branch is transfer to another branches of NBP according

to need.

Motivation: Employees of National Bank of Pakistan are only motivated by salary packages or financial

rewards.

Demotion:

If any employee violates the rules of the bank then he/she can be demoted. National

Bank of Pakistan can also demote the employees instead of layoff while facing

financial crises. Before demotion the hiring authority must give the prior written

notice mentioning the demotion reason.

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Separations:

When an employee does not want to remain a member of National Bank of Pakistan

then separations occur. But if the employee separate before the completing 5 years

then he/she pay back all the amount of bonds & certificates. If after completing 5

years of employment the employee want to separate from the NBP or move to

another bank or business then he/she would not be paid anything they can easily

move from the bank.

Layoff:

Layoffs occur when there is surplus of employees in the bank. Layoff can be

defined as the temporary suspension or permanent termination of contract between

the bank and the employee.

Termination:

Termination means the complete separation of an employee with National Bank of

Pakistan due to several reasons like, resignation by the employee, employee illness

or employee inability to work. Then the decision is taking by the NBP to terminate

such employee.

Resignation:

If any employee of NBP wants to separate from the bank or want to resign from the

bank for any reason then after a procedure he/she would be resign.

Retirement:

At the age of 60-65 employees would be given retirements. There are retirement

benefits provide the retire employees by the bank.

Labor Management Relations:

National Bank of Pakistan is very good in labor relations. Unions of National

Bank of Pakistan has great strength and HR department take great care of union

opinion.

There are two unions that are working in the NBP:

1. Staff Union (include clerical & non clerical staff)

2. Officer Federation (for salary packages fought in Head office)

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Critical Analysis: During my internship, my main goal was to provide my knowledge (theory),

various practical situations. This report is an essential part of the internship, as this

will help to better understand the working relationship between the working of bank

and what is written in books. The theory books written cases, not implemented as

it is.

During my internship in National Bank of Pakistan I have observed that bank is

way behind in adopting the computerized system. Most of the staff members in

NBP are not familiar with the computer. Specially in Government department, staff

employees doing manual working there is less working on computer. Only 1-2

Personal Computers are keep in Government department.

Customers focus is change in every department. In credit department, the customer

who have a reference the officer more focus on them. In Remittance or Cashier side

the customer focus are less. There are often seems to be bargaining among the

customers and the staff of NBP. The behavior of peons are very bad with customers.

Every employee has their own PC but there systems are very slow and oftenly

systems are not working so that customers face difficulty and the employees are sit

free.

In some departments the manual working are more than computerized working and

there is also lack of staff. In credit department, in the Gold Loan section only one

officer work. Their manual working is very much so that there is a need of other

employee or assistant which help him in their work. The burden of work is more so

that he take more work with internees. It so much time taking to do manual working.

The 2nd and 3rd floor area is too much better and too much clean but the basement

area or government sector area there is no proper system of cleanliness. Employees

are old age and they smoking too much that makes the environment more dirty.

There is a proper dress code for employees in NBP but every employee wear dress

according to their choice. Only few employees follow the dress code.

The culture of NBP totally based on reference. Discipline are there in some

departments. The permanent employees are satisfied but the contract-base

employees are less satisfied.

During the utility bills and pension dates law and order situation becomes worst

due to less control.

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Pest Analysis:

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.

Economical: Constraints in mobilization of public savings because of inflation.

Staff cost.

Operating cost

Bad debts

Social and Cultural: Inadequate human resources.

Cultural strain to savings.

Defaulter’s lobby.

Declining education and work ethics.

Inadequate accountability.

Adequate empowerment.

Technological: Inadequate communication infrastructure

Inadequate computer facilities

Inadequate IT training

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SWOT Analysis:

Strength:

NBP works as an agent of State Bank of Pakistan because

SBP have not its own branches so that NBP works for SBP.

As well as NBP is a custodian of government capital and

government business owner and as well as custodian of

public money.

NBP is old and sound financial institution among other

banks and high profitability and it is the lender of

government agencies.

NBP is the first bank which has huge operational network

all over the Pakistan as well as abroad.

NBP launch many products and services to their customer

so NBP try to improved the quality of life of our customer.

Employees of NBP are strict follow the rules and

regulations impose by the bank. In this way the output of

the bank is enhances.

Weaknesses:

Employees of the bank know that their job is secure so their behavior with customer is not

professional. NBP Employees rudely behave with customers and as well as with each other.

Lack of computerized network which cause the more time consume, energy and mental

stress in rush face the employee. The bank lacks the modern equipment, outdated systems

and procedures.

Being Govt. bank political pressure affects the negative way and provides the loan to the

customer under pressure which creates the negative affect on bank employee.

The promotion and bonuses are powered by senior favouritism will and decision which

affect the employee’s performance negatively. That is why, Condition of Bank branches is

very poor and service to the clients is slow.

Lack of modern financial/banking product, the bank falls far behind when innovative and

new schemes are considered. There are no proper system for advertisement & marketing

of products. Lack of IT infrastructure and sometimes IT system is hanged so bank could

not provide the information to their customer on time.

Resistance to change and decision making process are slow.

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Opportunities: N.B.P more trustable due to government bank so it has opportunity to improve itself and

increase market share among other banks.

Now a days banking system is growing rapidly so N.B.P have opportunities to apply

advance standard and more contribute into the market.

Now a day economic and business activities are increasing, N.B.P play roll in trade and

commerce for the benefit of their customer. N.B.P has vast opportunity to introduce new

products and services because its branches spread all over the Pakistan and it has large

number of customer.

Now a day, a world becomes a global village due to advancement of technology

particularly in computer field. So N.B.P introduce new technology to provide the good

service of their customer.

Develop organize the aggressive marketing plan for promotion the bank and its products.

Can lunch a marketing strategy and offer new and innovative products to capture the

business from other banks.

Threats: Number of commercial bank are opened, operating their business and provide same

facilities and product to the customer which provide N.B.P so It is threat for N.B.P.

Competition with foreign bank because they offer many service to their customer are totally

free or minimum prices.

Political influence is also threat for N.B.P because it is a government bank and political

pressure affects the performance of it.

Customer satisfaction is very important for business but in N.B.P there are no proper

systems to remove the customer complaints for its satisfaction.

N.B.P receive high interest rate when other banks offer lower interest rates. Interest rates

offered by N.B.P like interest on loan, extra higher service charges.

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Corporate

Social Responsibility

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CSR

NBP has taken various initiatives that very clearly depicts its dedication towards its Corporate

Social Responsibility mission. The Bank is running a full-fledged CSR Program to benefit the

community at large mainly by investing in projects related to development of critical socio-

economic sectors. The foremost area of focus for CSR initiatives are directed towards promotion

of education, health, woman and child welfare, special persons, culture, sports and relief for

affectees of natural disasters. Various steps have been taken in this regard and Bank is investing

huge funds for bringing positive change and improving the quality of life of members of the

society.

It is truly a matter of pride that National Forum for environment and Health recognized the efforts

of NBP and awarded the CSR Business Excellence Award 2012. Also, NBP has been recently

awarded with the “Gold Medal on CSR” by President of Pakistan on the basis of overall

contributions and donations for charitable, social, educational and public welfare efforts.

NBP CSR Initiatives -2013

Construction of Lab & X-Ray Facilities at Noor Memorial Hospital Chakwal:

Wheel Chairs - Rehabilitation Center Muzaffarabad

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NBP Teams Achievements-2013

Vocational Training for

NBP Captain receiving winners cup NBP victorious Team - National Hockey Championship-2013

Mohammad Sajjad won the NBP Snooker NBP Ladies Team receiving Cash Award on winning

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Conclusion: After completing my internship in National Bank of Pakistan my conclusion is that:

Administration cost is very high in National Bank of Pakistan.

There is lack of new technologies.

Promotions seems to be late due to official arrangements.

Staff of NBP is very cooperative with internees.

NBP culture is reference based.

All employees are gave their best to NBP.

There is lack of staff in some department.

There is a great problem of system error. When system error is occur all the work

has been stopped.

The building of NBP of main branch is very beautifully made.

I got great experience by working in NBP.

My Learning: My learning of internship is that:

Practical knowledge is totally different from bookish knowledge.

The staff behavior should be soft with customers.

Some customers are only come to NBP for time wasting and they sit free due to

system error whole day in the bank.

The NBP staff of credit department is very cooperative with customer.

All officers are very cooperative with internees.

Overall it’s a great experience to work in National Bank of Pakistan.

National Bank of Pakistan culture totally depends on reference.

Promotions are held on reference based.

My learning is that practical life is more difficult from study life. In every field we

have to face difficulties but when we work with patience and more sincerity then

we gain success. There is need to be live balanced then we gain our objectives and

live happy and calm life.

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Recommendations: 1. National Bank of Pakistan need to adjust itself with the rapid changes appearing in

the market as other banks are adopting the changes as they occur. National Bank

must make efforts towards modern banking.

2. The bank should improve the quality of training of its employees and the integrity,

controls and efficiency of its systems, processing and financial reporting.

3. Management of NBP must contribute their part to train their staff so that they focus

on customers about facilitating with good manner.

4. Procedure of taking services from the NBP need to be simpler instead of lengthy

procedure.

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

should design, develop and deliver product and services for economic growth.

6. The NBP should adopt modern banking tools and techniques. Quality leadership,

clear vision, investment in IT infrastructure and human resource development.

7. The bank should develop software for pension disbursement.

8. The NBP should provide support to the Micro, Small and Medium enterprises so

that reduce the unemployment and helping to create a more equitable distribution

of wealth.

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References:

Officers of NBP

www.nbp.com.pk

http;//en.wikipedia.org/wiki/National_Bank_of_Pakistan

http;//investing.businessweek.com/research/stocks/financials/financials.asp?ticker=NBP;

PA

My own observation and experience and gathered information during working in NBP as

internee for eight weeks.