CONTENTS

CHAPTER NO. 1INTRODUCTION Page No.

1.1 History Back ground of N.B.P 01-02

1.2 An Overview & Management of N.B.P 02-03

1.3 Objective of National Bank of Pakistan 03-04

1.4 Functions of National Bank of Pakistan 04

1.5 Purpose of Study 04-05

1.6 Methods of study 05-06

1.7 Limitation. 06-07

CHAPTER N0.2

INTERNATIONAL FEATURES OF NATIONAL BANK OF PAKISTAN

2.1 Management & Head office management 08

2.2 Organization & head office management 08-10

2.3 Law Recovery/ Litigations Division 10-12

2.4 Organizational Structure 12

2.5 Departments Functioning under N.B.P 13-15

CHAPTER N0.3

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

3.1 Computerization 16

3.2 Decentralization 16

3.3 Foreign Trade & Operation 15-17

3.4 Progress in Islamization of Banking 17

CHAPTER N0.4

TRAINING AND FACILITIES OF STAFF

4.1 Training to Staff 18

4.2 Salaries & Facilities of staff 19

CHAPTER N0. 05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE

OPERATED BY NATIONAL BANK OF PAKISTAN.

5.1 Current Deposit 20

5.2 PLS Saving Account 20-21

5.3 PLS Term deposits Receipts or Fixed deposit A/Cs 22-23

5.4 Foreign currency A/c 24

5.5 Future Outlook of National Bank of Pakistan 24

CHAPTER N0.6

CONCLUSION AND SUGGESTIONS

6.1 Conclusions 25

6.2 Suggestions 26

6.3 References 27

INSTITUTE OF BUSINESS ADMINISTRATIONUNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE

This is to certify that Business Intermeshed Report on National Bank of Pakistan, has been prepared by

MISS . NUSRAT D/O MUHAMMED HUSSAIN QURESHI

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 Internship has been meticulously carried out and fulfils all the requisite conditions.

Dr. Anwar Ali Shah G. SyedProfessor / Dean

& Internship GuideI.B.A, University ofSindh,

JAMSHORO

DEDICATION

This humble effort is dedicated

to my beloved parents & teachers, whose

love and efforts can never be forgotten.

A CKNOWLEDGEMENT

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 Dean, Institute of Business Administration Dr. Anwar AH Shah G.Syed without his 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 express my heart-full gratitude to the executive and staff member of National Bank of Pakistan, Fatima Jinnah Road 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"

NUSRAT QURESHIM.B.A (Final) Evening

Institute of Business AdministrationUniversity of Sindh/

Jamshoro.

CHAPTER # 01

INTRODUCTION

1.1 HISTORY BACKGROUND OF N.B.P

The rational Bank of Pakistan is a Commercial Bank and transacts alltypes of Banking Business. The National Bank of Pakistan was established onNovember 29, 1949 as a semi public commercial bank.

The Bank has the distinction of acting agent of the State Bank ofPakistan and operates treasuries where the State Bank of Pakistan does not haveany office.

The Head Office of the Bank is at Karachi. Ever since its establishmentin 1949 it has been leading Commercial Bank of the nation, sole agent of theGovernment of Pakistan's batter trade with countries and of State Bank of Pakistanfor the Government Treasury.

It has offices at all the major financial centers of the including at prideplaces likes 100 wall streets. New York and United nations Plaza. Its Internationalnetwork includes Branches at Bahrain, Cairo, Paris, Frankfurt, Hong Kong, London,Washington D. C of shore banking unit at export processing zone. Karachi andrepresentative offices functioning at Beijing and Seoul

In Pakistan, the bank provides complete bank facilities to the peopleat over 1436 Branches operating even at the far lug Northern Areas. National Bankof Pakistan is the first bank in the country to introduce and implement: supervisedRuler 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 providesspecial loan facilities for higher education for studies abroad and Qarz-e-Hasna todeserving poor students of Medical and Engineering Colleges in Pakistan and also recently introduced the fifteen (15) months advance salaries for the facilitation ofgovernment servants. The well equipped research department to work on thedeveloping trends 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 branchesLocally 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 Karachi's center.

In the fifty-five years that have followed the bank has maderemarkable progress testifying to several things.

It is now extending the operations of the Bank to all branches toBanking, to commerce, to industry to trustee services as well as to agriculture andto the need of the small or big businessman.

It has rapidly advanced from an institution with restricted power tothe biggest commercial banks in the country it also shows it soundness of thepolicies that the bank has pursued in the execution its tasks.

The National Bank has lead the trial in this respect, other banks havefollowed it. The National Bank has great contribution towards building wide Bankingstructure in Pakistan and serving all aspects of the National life and all classes ofsociety, (http://www.nbp.com.pak)

1.2. AN OVERVIEW AND MANAGEMENT OF N.B.P

The story of National Bank of Pakistan is part of Pakistan's struggle for economic independence. When, National Bank of Pakistan came into existence in November1949, The country was facing a severe economic crisis originally, The intention was to setup this bank some time in early 1950, but the critical situation that developin the jute trade as a result or India's refusal to accept the exchange rate of the Pakistan Rupee, following the devaluation of its own and the sterling functioning Dacca and opened its offices at five important jute centers namely Narayanganj, Chandpur, Rangpur and Khulna, in the East Pakistan.

The Bank advanced 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 inthe Cotton growing areas and extended credit facilities liberally in order to restorestability to the market. In 1951, the country was once again faced with a crisis inthe cotton trad6 when prices was crashed and touched the lowest level sinceindependence following the cessation of hostilities in Korea. The bank incollaboration with the cotton board provided the necessary Credit facilities to thetrade and the crisis was tided over {http://www.nbp.com.pak).

Another important event in the early history of the National Bank ofPakistan was taking over the agency work of the State Bank of Pakistan in 1952,fortransacting Government business and managing currency chests at places where.The Bank of Pakistan did not have an office of its own. In 1962, the agencyarrangement was extended for further period.

Prior to nationalization, a Central! Board of Director governed thebank, which consists of a managing Director appointed by the Central Government,nine directors elected by the shareholders and the three directors appointed by theCentral! Government. The President of the Central Board was appointed by thecentral! Government amongst the Director.

Consequent upon nationalization, the Central Board disclosed and inits pace an Executive Board consisting of president, who is the Chief Executive andfour other member were appointed for General direction and superintendence ofthe affairs and business of the Bank (http://www.nbp.com.pak).

The general direction and superintendence of the affairs and businessof the bank vests in this executive board. In 1980, the Federal Governmentconstituted Board of Directors comprising the president, five member of the Executive Board of the Bank one nominee each of the Pakistan banking council andthe ministry of Finance. All nationalized commercial banks are controlled via thePakistan Banking Council, being to State Bank of Pakistan regulations as well. TheFederal Ministry responsible for Bank operations is the Ministry of Finance.

1.3 OB J ECTIVES OF NATIONAL BANK OF PAKISTAN

The main objective of National Bank of Pakistan has been to includeand spread banking habits among the people mobilize their savings and thus makeand ever increasing contribution to the economic development of the country. Ithas all along pursued a policy of rapid development extending, its facilities toalmost 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, (http://www.nbp.com.pak/). To day it provides the largest network of offices in the country, 1436.Being in Pakistan and 22 abroad. It offers remittance facilities to almost everyimportant center in the country to provide facilities to the traveling public the bankhas introduced its own traveler's cheque which are excusable at a branch of thebank in Pakistan.

A.T.M Service.

A.T.M Service has also been started by the National Bank of Pakistan. This service is available at six 06 places at Hyderabad and customers are facilitated through this service very effectively.

1.4 FUNCTIONS OF NATIONAL BANK OF PAKISTAN

The National Bank of Pakistan a commercial bank generally makes advances for aperiod not exceeding one year, except in case of small and medium industries forwhich advance may be made for a maximum period of five years. The bank makesnot only against the security of stocks and goods hypothecated or pledged to thebank, but also against documents of goods and properly, shares are various jointstock companies. Government securities. Insurance policies deposits receipts, etc.The margin, and rate of interest are determined by several factors including thetype of security the size of loan and the integrity of the party(http://www.nbp.com.pak). The Bank is authorized to carry on kinds of banking business and isempowered to make loans. It has also undertaken special financing operationsconnected with Government prices support scheme. The bank also gives advancesloans, especially for agricultural products, such as cotton etc. It also safeguards thevaluable articles of people. It also arranges training programs for Bank officials. It caters to the needs of the trade, industry & agriculture, both inprivate &. public sectors. It participates in procurement of seasonal crops e.g.-wheat, rice, cotton, sugar cane, etc. It also provides credit facilities to smallindustrial units agriculture sectors as per credit mandatory targets fixed by theState bank of Pakistan.

1.5 PURPOSE OF STUDY

The main & primary purpose of this study is to fulfill the requisiterequirements towards the completion of MBA degree. In this connection everyStudent is Require undergoing an Internship of six weeks in any businessorganization institution.

The business internship report is carried on to be familiarizing withactual 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 ofPakistan & wrote a report.

Secondly it is necessary for the Bachelor of Business Administrationthat after acquiring through knowledge, we should acquaint ourselves with theentire practical knowledge & experience, which we can only gain through visitingany Organization & Conducting a detailed study.

Thirdly, the purpose of this study was to gain good amount ofconfidence & to be come aware of the mechanism of National Bank of Pakistan byworking dealing with officials of the Bank.

Finally, the purpose was to know how National Bank of Pakistan playsits role significantly in the development of financial & other industrial. There was anample chance for us in this study for learning about financing and bankingdevelopment in Pakistan.

1.6 METHO D S OF STUDY.

For the preparation of this Internship report, I used two methods tocollect data, first primary data collection and second secondary data collection.

In secondary data collection I interviewed different officers and officials. For this purpose, I paid many visits to National Bank of Pakistan's Regional Office Hyderabad, National Bank of Pakistan Fatima Jinnah Road BranchHyderabad. In conduct interviews from head of the different department of NBPand all the information is collected systematically.

For this purpose, I prepared the questionnaire and asked all thedetailed function and procure of their departments.

I interviewed following in charges.

1. Mr. HanifRajar (Area Manager)2. Mr. Ghulam Murtaza Baloch (In charge Advances)3. Mr. Atta Hussain Rajpar (In charge F.E. Dept:)4. Mr. S. Ahmed Raza (In charge Admin)5. Mr. Shahid (In charge Inspection)

All above officers have fully cooperated with me and provided all thenecessary 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 systematicallycollected arranged analyzed for writing this internship report.

I am highly obliged and thankful to all the above Executive andpersonnel of National Bank of Pakistan, who have provided all the assistance andenabling me for the preparation of this report.

1.7LIMITATION S

During the course of study, I faced many difficulties in collecting therecent and accurate information. There are number of constraints encountered by me. Some of themare as under:-

1. The Bank did not allow me to work practically in the bank, I was only bound to ask questions to their in charge officers.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 matters did not answer the number of question.5. The lower grade staff was not properly trained therefore they did not answer accurately.

6. Majority of staff member did not give full attention and they were not interest to provide me the functional and other operational details/ except some officers who provide me full assistance.

Instead of all these difficulties, I have completed this work due to fullcooperation and assistance of earlier mentioned officers.

CHAPTER # 02

INTERNAL FEATURES OF NBPMANAGEMENT AND ORGANIZATIONAL STRUCTURE

2.1 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 itsbusiness. The member of board consists of President. Who is Chief Executive andsix other directors as members appointed by the government.

The member of Board responsible for granting loans in the field likes agricultureindustry, housing and import export trade and to make the policy of the Bank (Theinformation about this chapter given by Nisar Ahmed Qazi (In charge deposit section).

2.2 ORGANIZATION AND HEAD OFFICE MANAGEMENT

In the National Bank of Pakistan's head office^ there are sixteen 16separate division to deal with all the necessary problems separately, on the top ofall these divisions.

The details about these divisions are as under

(i) 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 andthis section contains two divisions.

(ii) Finance and Investment Division.

This division is further segmented into different wings and a seniorvice 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

(ii) Economic Research and corporate Planning division.

This division does the work of economic research of the country. Thisdivision is also managed by an Executive Vice President.

(iv) Administration, Computer and Human Resources Development Division.

From the name it is dear that is consists of three divisions namely.

(v) Administration Division.

This division is also divided into Establishment Wing, Staff Relation,Central unit fraud and forgery and regulation wing. Personal Wing and Personnelcareer planning wing.

(vi) Computer Division.

The division consists of computer wing and EDP audit, and procedureand administration wing.

(vii) Human Resources Development Division.

This division supervises all the staff colleges, at Karachi, Islamabad,Lahore and Peshawar. All the above division supervised and under controlled by andcoordinates under a Senior Vice President.

(viii) 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

LAW, RECOVERY, LITIGATION DIVISION.

There are two divisions, which take part in this section.

(ix) Law Division (x) Recovery & Litigation. (xi) Customer Service Division. (xii) Engineering & Maintenance Division (xiii) Business Promotion and Marketing Division.

Credit Processing & Monitoring Corporate Credit Division. Two divisions are joint together in this section they are.

(xiv) Credit processing & Monitoring Division.

This division is distributed according to different areas.

(a) N.W.F.P & A.K Sindh Balochistan Area Wing.(b) Karachi Area Wing(c) Special Credit Ceil and Punjab Area Wing.

(xv) Corporate Credit Division/Credit Policy Division. This division segregated into two sections, to deal! them separately.

(a) Co-ordination section.(b) Agriculture Financing Section.

(b). Field Management and Organization.

There are Four executives to supervise the bank maters of everyProvince, as they are called provincial's chiefs. These Provincials Chiefs areResponsible for the entire' banking in their provinces such as income, expensesAdvances and deposits.

The Regional Chief NBP BalochistanRegional Chief NBP Punjab

Regional Chief NBP SindhRegional Chief NBP N.W.F.P & Azad Kashmir.

These provinces are again divided into regions, the regions arecontrolled and management by regional heads, which are responsible for thesupervision in their circles and deal with the problem zones in their jurisdiction ofBranches and Staff.

The country has been divided into 19 (nineteen regions) by NBP tofacilitate 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

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 Region15. Sialkot Region16. Faislabad Region17. Multan Region18. Rawalpindi Region19. Islamabad Region.

These regions are also sub-divided into zones. The in charge of zone is called Zonal Chief.

2.3 ORGANIZATIONAL STRUCTURE.

PRESIDENT

DIRECTORS / SEVPS

Provincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade-I, II, III

Clerical and non-clerical staff

DEPARTMENT FUNCTION UNDER N.B.P

NBP has seven main departments for functioning of which wholefunction of bank is depended or we can easy that all services are rendered throughthese seven departments.

These departments are explained with their headings are as under:-

a). ADVANCE DEPARTMENT Advance department receives the application from Intendingborrowers and submits the same application to the higher authority after processingfor approval the advances can be of following nature (Saeed Ahmed Khan)

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 andoutside country within certain limits/ Usually money remitted through DemandDraft/ Telegraphic and SWIFT transfer.

Always two parties are involved in this function one is receiver andanother is sender.

C). ACCOUNTS DEPARTMENT

Accounts Department maintains the fixed deposits receipts of thedepositor. Account department also keep income and expenses accounts. Accountdepartment prepares the weekly and daily statements of the affairs of the branchare first like a balance sheet (Operation Manager)

d). FOREIGN EXCHANGE DEPARTMENT.1), Imports

We sell our foreign exchange to the other country, which is calledsuch as we purchase the foreign goods from the others. Import is done throughletter of credit (L/C) by the importer. Letter of Credit is an undertaking given by theimporter bank to the exporter's bank.

2). Export Export is to sell our goods to the other country and earn foreignexchange. The bank provides facilities of exporting the commodities to themanufactures of the goods of the country.

3). Foreign Remittance.

The bank provides the foreign remittance facilities to the studentstudying aboard. Bank also provides foreign exchange in the shape of travelersCheques to the intending Visitors {Syed Qamar Hashmi (Assistant), Aijaz Ali Rathore, (OG-III).Miss Razia (OG-III).*e). CLEARING HOUSE DEPARTMENT

The function of Clearing House department is to pass the chequepresented by one branch of the bank to other branches of the banks. Clearinghouse is usually set up on the big cities and is control by the State Bank ofPakistan.

f). CASH DEPARTMENT

Cash department is backbone of the branch./ Cash departmentreceives the cash from depositors and makes the payment to the cheque holder,

g). MARKETING/BUSINESS DEVELOPMENT DEPARTMENT

Marketing Department is set up in the big branches in the commercialbanks. 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.

Rafique Arbab (OG-II)Syed Shah Nawaz (Assistant)Moinuddin Muallian (OG-II!)

Mohammad Atiq Khan (OG-1)

Various Bank information circular.. No & Date. N/A

CHAPTER # 03

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

3.1 COMPUTERIZATION

With a view to up grading and streamlining the working system ofNBP and procedure plans were under taking by the management to providemicrocomputer and electronic ledger. Card's machines to the larger branches of abank. This program will also be expended to the other smaller branches in comingyears. Utilization of the bank's mainframe computer at Head Office, which happensto be the most sophisticated amongst all the banks in Pakistan is also progressingto further upgrade the capacity of NBP in coming year.

1. DECENTRALIZATION

Under the direction of the government, operation of all nationalizedcommercial banks were significantly centralized by setting up provincial headquarter at Karachi, Lahore, Peshawer and Quetta, each headed by a member ofexecutive board, enjoying vast power.

The banks policy of decentralization of financial sanctioning authorityby delegation of powers to Regional and circle officers and credit committee,resulted in improving efficiency and prompt attention to the need of the customerson a country vide basic, Decisions had been quicker and service to client morerapidly and effectively available as a result to this policy.

This scheme, which has been well received by the business communityand the various chambers will be beneficial in quick disposal of credit facilities allprovincial level and will also help in solving the problem and grievances of thecustomers more effectively. Service to clients will also be improved {Various NBPinformation circulars No: and dale not available)

2. FOREIGN TRADE AND OPERATION

National Bank of Pakistan played an active role in handling thecountries export and imports.

The growth of international business operations depends causally andexpansion of foreign contacts. The bank already has 22 overseas branches inimportant business located areas of the world, The NBP also looking forward toopen some new branches in foreign countries.

Errors are also underway to strengthen out relationship with banks incentral Asia and to establish joint ventures with the bank of that area political andfinancial stability is restore. National bank will try to establish branches there.

3.2 PROGRESS IN ISLAMIZATION OF BANKING

After the introduction of profit and loss sharing scheme on a limitedscale in January 1981. The Federal Government in 1984 announced a major policydecision that by the end of June 30 1985 all the domestic operated banks andfinancial 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 thefinal stage from July 1,1984 saving deposits have been convert on profit and losssharing basis from this date on words the bank is not accepting fixed perioddeposits on interest basis.

It should not be considered the end of the mission as mush moreremains to be achieved, Until June 1985, none interest basis investmentopportunities were more, while NIB liabilities were comparatively less. But nowafter complete switch over the reverse in the position. But further continuousresearch and dedicated efforts are necessary art national level so that Pakistan maypresent, before the world a system which is really new/ dynamic and in accordance{M.Han/f'Rajer (Admin. Manager)

CHAPTER # 04 TRAINING AND FACILITIES TO STAFF

4.1 TRAINING TO STAFF

In 1949, the first year of operations the NBP has one hundredemployees on its payroll but with in two years this number had grown to 1505 by1960 the figure has risen, to 5023 and now in 2006 it is the order or 22356.

During the first ten years the NBP trained its own staff through aseries of training programme both for junior officers and clerical staff. By 1958however it was obvious that one thins more comprehensive was needed and thebank established a staff college Karachi. Three mote colleges at Islamabad, Lahoreand Peshawar, setup later.These colleges provide course of instructions,supervisorpersonnel and clerks to meet the Bank's ever growing trained personnel.This needssprings not only from the steady grown for the bank's business but also to replacewastage due to retirement resignation, ill health or death. The staff college receives junior bank officers for further training inbanking the course lasting from six to nine weeks with about twenty-five studentsin each course.

The staff college course are designed not only to impart technicalinstruction, but also develop qualities of judgments decisions, leadership andmanagement, since these student are likely to be those men who may expect to these senior most executive positions the bank has to offer. The bank also deputes officers to attend banking seminar both inPakistan and abroad and it attaches great importance to the exchange of ideasinformation and knowledge, which can most use fully accrue from these gatherings.

In its position the National Bank has considerable responsibility inensuring that the country is well represented at meetings of bankers at domesticand international level.

4.2 SALARIES AND FACILITIES TO STAFF

As an employer NBP is also deeply conscious of as responsibilities andact it be said that at the out set/ consider its self a good employer. Its seals of payterms of services, staff benefits and amenities compare very well with instruction ofsimilar stature in Pakistan.

The result is that employment with the bank has come to be regardedas some thing of prize. The scale of pay and allowances for officers and staff arerevised from time to time as need grows. In addition employment with bankpersonable and bonuses are regularly paid.

The bank provides free medical treatment for all its employers, theirfamilies and dependent parents. A senior member of the medical profession acts asMedical Advisor and medical consultant {Mr. Noman Ahmed)

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 inthe big cities. NBP has had recourse to several measures in Karachi and Lahore forinstance the bank has constructed residential quarters. NBP has granted loans oneasy terms to members of staff to enable them to construct houses of their own.

To solve the problems of conveyance for its employees the bankmakes advances to staff for the purchase of cars motorcycles and cycles.

The bank has provided finance for the establishment of sports clubsand staff recreation centers, to enable staff sport clubs and other suitablerecreational activities to flourish. Co-operative stores and subsidized canteens helpthe lower paid categories to get the best value form their earnings.

CHAPTER # 05FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE OPERATED

BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits,1. Current deposits2. PLS Saving deposits3. Fixed deposits account (Time Deposit)4. Foreign Currency Account

1. CURRENT DEPOSIT For current deposits NBP open the account in the name of individualProprietary firms/ partnership firm, private limited companies clubs, associationsocieties and other institutions. The account can be operated by single or two morepersons 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 signor signature is not firm or shaky the bank requires is photographs and he has tocome in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the accountusual not be less then Rs.1000/-

But his restriction is not imposed to the accounts of charitableinstitutions and the account opened in the month of closing i.e. June &December(waqarullah Khan (OG-III)

1. PLS SAVING ACCOUNTS

The silent features of profit and loss sharing saving accounts to beopened in NBP are as under.1. These accounts can be opened by individuals in their own single or 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 the minimum amount of Rs. 500/- only

3. Money can be with drawn form PLS saving account only through cheque.

4. To share in the profit a minimum balance of Rs.500/- must be maintained in an account. The minimum balance 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 calendar 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. Depositors shall forfeit his right to share profit for he notice period shall be deducted from his total profit earning products.

8. They shall be no restrictions on maintaining the maximum balance in PLS saving account.

9. On the first of Ramzan every year the Zakat of 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.

Mr. Nisar Ahmed Qazi (OG-HI)

2- PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSrTA/C

In the case of fixed deposit account deposit is made for a fixed periodand a money deposited can be with drawn before the expire of period fixed orbefore giving an advance notice to the Bank. Fixed deposit caries a higher rate ofinterest than the other type of bank account and the rate of interest rises with thelength of the period and the amount of deposit.

One opening a fixed deposit account the bank grants to the depositora fix deposit (FDR), which is not transferable to any other person. When thedepositor with drawn the receipt must be handed back to the bank. The silent features of profit and loss sharing term deposit excepted byNBP 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.

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.

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 up to R.s.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.10. Zakat or the face value PLS term deposit will be recovered as may time as the valuation dates (i.e 1st Ramzan) falls between the date of issue and the date of expiry of the deposit. {Abdul Hameed Bhutto (OG-III)

3- FOREIGN CURRENCY ACCOUNT.

NBP has also introduced foreign currency accounts for Pakistan andforeign Nation in Pakistan and abroad.This scheme assures its customers on betterprofit 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 wiil 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.5. Ali the deposits and profits in the customer's foreign account are except from Zakat income or wealth tax.6. The customer's sources are protected from any scrutiny 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 al! 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 tofacilitate the customers in Pakistan, Saudi Arabia and UAE {Atta Hussain Rajpar (OG-III)

3- FUTURE OUT LOOK OF NATIONAL BANK.

NBP is fully aware of the developments taking place in the world aswell 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 strategyas well as by the adjustment of its operational policies.

The Bank planning to institute major improvements, especially incustomer service launch innovative products to ensure that the bank continues toplay a dynamic role in the development of the country.

CHAPTER # 06

CONCLUSIONS

At The Completion Of The Business Internship TheInternee Draws The Following:

1. It appears a lengthy process of sanctioning advances.

2. It seems that the staff members are not properly trained

3. It seems that the promotions are not given in the due time.

4. It appears that large amounts are paid on administration cost.

5. It might not be possible for every borrower to repay the loan / money in due time.

SUGESTIONS

On the basis of conclusion internee draws thefollowing suggestions:-

1- It is suggested that the process should be shorter in order to save time, money, energy and stationary etc.

2- It is proposed that proper training should be provided to the staff members that will ultimately increase the performance of Bank over all.

3- It is advised that promotion should 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- The NBL should establish the new counters in order to confront with the hectic business activities. It will also help to reduce the extra load of manual work.

6- ' The period of repayment of the loans should be extended.

REFERENCES

1. By Greener Michael The Penguin Business Dictionary Edition 1995 Page No.10

2. By Muhammad Rauf Beg Money and Banking 2nd

Edition 1993 Page No.55.3. By Mukhtiar Ahmed Introduction to Money and Banking 1st Edition 1995 Page No.604. By israr-ui-Haq Banking Law and Practice

5. By Dr. Syed Anwar Ali Banking 1st Edition Page No.02

6. Annual Report of NBP 2003,2004,2005.

7. History of National Bank of Pakistan/1998 by: (N.B.P Management Division)

8. Mr. Hanif Rajer/ Area Manager9. http://www.nbp.com.pak10. Mr. Ghulam Murtaza Baloch, In charge Advances (OG-I)11. Nisar Ahmed Qazi (In charge Deposit Section)12. Atta Hussain Rajpar (In charge F.E Department)13. S. Ahmed Raza/ In charge Admin (OG-HI)14. Miss Razia (OG-III)15. Mr. Shahid (In charge Inspection)