ishtiaq munawar01

7/29/2019 ishtiaq munawar01

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Ishtiaq Munawar (08020920-042) FMAS

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4. EXECUTIVE SUMMARY

By the grace of Almighty ALLAH, I have successfully completed my two months

internship as per requirement of BBA (HONS) course. I was appointed at NBP, I feel

myself lucky to have worked with such a cooperative, dedicated, result oriented team.

They all helped me in every possible way they can. I was happened to work with all

departments.

This particular internship report on various parts or sections are an introduction to the

first and second overall position shown, i.e. the functioning of the bank operations and

bank focused on the tasks. Similarly, three sections, the introduction of performance

history and the Institute expresses. Four-section plan strategies, and represents

success. Last but not least of all five parts, pest analysis, SWOT analysis ratio analysis.

There are a few tips and recommendations. Pakistan's banking sector has been a slow

and government-dominated region within a short period of 5 years and more

responsive, competitive and profitable industry has changed. Changes speed and

banking sector and economic development of their role in promoting the success of

indexing is now a region of a major story. Banking industry in Pakistan to enjoy these

trends will continue and promising prospects. NBP National Bank of Pakistan, Pakistan

is one of the major banks. NBP National Bank of Pakistan on November 9, 1949Ordinance, 1949 was established under. Initially the purpose of bank lending to

agriculture. Karachi and Lahore offices opened since December 1949. Now it has

branches across the country.

.


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INTRODUCTION OF STUDY

5.1.1 Introduction

It is the requirement of the BBA (HONS), University Of Gujarat that all students of BBA

have to spend six weeks in any organization to get practical exposure and to get

attached in an organizational environment which is dramatically different from the

educational environment. Thats six week period called Internship Period , if spent

properly and truthfully, enables the students to be more confident, more familiar, more

responsible and, above all, more committed to its work in the practical field. But I have

also been assigned to do internship of two months period in NBP

This report consists of practical work that I have done in NBP. National Bank was

established in 1949. After it, to expand its network all over the Pakistan according the

need of society. NBP is a single bank in Pakistan under the control of Pakistan

government. It is established for welfare of society that provides the security for its

precious thing like cash, gold etc. There is verity of accounts in the NBP that people are

opened according their desire. It provided different services on the behave of their

customers. Students an internship with the organization two moths are required to lead

to practice discipline and banking administration is to serve the purpose of acquainting

students with the knowledge. The basic purpose of it to implementation of students

skills knowledge techniques and problem solving method that learned during the

university or in education life. The branch code where I have done internship is (0670)

National Bank of Pakistan (Jandu- k- Guraya.)


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5.1.2 Background of study

Being a business student, it is the requirements of our university to do internship in any

sector. I am interested in fianc and I am doing my specialization in finance field so I

choose the NBP because it is under the control of government. Major activities of

finance are performed in it. It is large commercial bank. People rely upon it very much

than other bank. People easily deposit in it because there is no fraud with them. NBP is

found in my place so it's easy for me to go to the bank of every day and back to house

easily.

5.1.3 Purpose of the Study.

The main purpose of this study is to assemble important information to make internship

report in NBP. As in the introduction I have mentioned that it is the requirement for

completion of BBA (HONS) and also

Work practically in an organization.

To develop interpersonal communication

Increase the knowledge

Theoretical and practical learning

5.1.4 Objectives of the Study

I. To conduct thorough study of National Bank of Pakistan.

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

the National bank of Pakistan.

III. To get some field experience about job.

5.1.5 Organization

I have chosen the banking sector to accomplish my internship and the organization

in which I have spent 2 months to complete my internship is NBP. NBP wasestablished vide Ordinance No. XIX of November 9. 1949. British Govt. devalued its

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

crisis in trade between the two countries and India refused to lift the Pakistan Jute.

To solve this problem, namely an NBP jute export is determined by a regulation of


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

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

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

growth of Pakistan, through aggressive and balanced lending policies, technology-

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

internationally. National Bank of Pakistan is under the control of Govt. It is

headquarters in Karachi. It has over 1450 branches in which 18 abroad. National

Bank of Pakistan maintains its position as a leading bank in Pakistan committed to

higher standards of performance to set. Growth was established by creating lasting

relationships with customers.

I. Prudence our business directory.

II. A national presence with a history of contribution to our communities.

III. Reward entrepreneurial efforts.

IV. Create value for all stakeholders.

V. Concern about relationships.

VI. Guided by the strength of our commitment and willingness to excel.

VII. Practice integrity, honesty and hard work.

VIII. Leaders in our industry.

5.2 Introduction of NBP

Introduction

In this chapter I am going to analyze the organization Short History of the NBP,

which is the management structure of the NBP, how many divisions are there, and

their work has to clarify in which also included the current staff of the branch, and

their qualifications, experience, salary structure and promotion strategies. What are

the responsibilities of their employees, incentives and motivation methods? Hours of

organization, physical facilities (workplace) provided to employees. How they

communicate with the organization. The standard of organizational outcome is

checked thorough the performance in term of customers satisfaction, and at the end

of lost revision of the budget of the branch.


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5.2.1 Brief history of the organization

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

Pakistan Ordinance 1949 and is listed on all the stock exchanges in Pakistan. Its

registered and head office is situated at I.I.Chundrigar road in Karachi. The bank is

engaged in providing commercial banking and related services in Pakistan (GOP) as

agent to State Bank of Pakistan (SBP). The bank operates 1450 branches in Pakistan in

which 18 overseas branches Under a Trust Deed, the bank also provides services as

trustee to National Bank of Pakistan investment Trust (NIT) including safe custody of

securities on behalf of NIT. At the time of independence in 1947, Government of

Pakistan decided that Reserve Bank of India would act as the common monetary

authority of both countries up to September, 1948. But this arrangement did not worked

due to certain reasons. In October 1947, there was fighting in Kashmir and India

refused to pay the share of Pakistan amounting Rs.550 million. Due to Indian

government attitude and role of Reserve Bank of India in creating problems to cater to

the banking needs of Pakistan. Government of Pakistan established its own central

bank SBP on 1st

July 1948.

Soon after independence of Pakistan, most of our foreign trade was with India and

Britain. Britain and other countries of Commonwealth devaluated their currencies. India

also followed Britain and devalued her currency. They were also compelling Pakistan to

do so. But the Government of Pakistan felt that devaluation of currency was not in the

interest of the country, so GOP refused to follow instructions of Commonwealth

countries. It resulted in a very serious situation. Stocks of jute in East Pakistan and that

of cotton in West Pakistan were accumulating. At that time to rescue the economy of

the country, the Government of Pakistan established National Bank of Pakistan under

National Bank of Pakistan Ordinance 1949. NBP acted promptly and advanced loans to

the farmers. National Bank of Pakistan was set up with authorized and paid-up share

capital of Rs.30 (M). It is completely government bank.

In 1952 NBP replaced Imperial Bank of India. This arrangement was negotiated by Mr.

Mumtaz Hussain as Acting Governor of SBP. In 1962 when Mr. Mumtaz Hassan

became MD (He had already served NBP for 10 years as its Chairman or Government


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Director), at that time NBPs branches were increased from 6 to 239 and deposits from

Rs.5 core

In 1974 during the era of nationalization, different small banks including Bank of

Bahawalpur were merged in National Bank of Pakistan. In addition to this Bank of

Mehran and NDFC were merged in it. 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.

VISION

It is basic aim to provide high quality of service to their customers and make to sure

economic stability of Pakistan. To be the pre-eminent financial institution in Pakistan and

Achieve market recognition both in the quality and delivery of service as well as the range of

product offering.

MISSION STATEMEN

Mission statement of NBP is included that

Provide a standard service

To enhance the international relation with Pakistan

To produce maximizing value for the shares holders

To growth the economic growth

To finish the poverty

To provide the financial aid to needy persons

To adopt the international traded rules

Discharging our responsibility as a good corporate citizen of Pakistan and in

countries where we operate
http://www.nbp.com.pk/Services.htmhttp://www.nbp.com.pk/Branch_Nwt.htmhttp://www.nbp.com.pk/Branch_Nwt.htmhttp://www.nbp.com.pk/Branch_Nwt.htmhttp://www.nbp.com.pk/Branch_Nwt.htmhttp://www.nbp.com.pk/Branch_Nwt.htmhttp://www.nbp.com.pk/Services.htm


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Values

Today NBP has high standards of services offering that meet the customers

need

Technical skills to meet the challenges

To understand the society needs and realized its need according the society

requirements

Value creation for the investors, creditors, debtors, costumers

5.2.2 NATURE OF THE ORGANIZATION IN PAKISTAN

Bank has a great importance in financial sector because it deals with money

transactions. It controls the inflation and depletion through the supply of money

according the market situations. When there is access of money in the market and

country is in inflation then bank sell its marketed securities in the market and control the

inflation. Banks is such institute in which accepts deposits from the individuals,

company, firm, household etc. at the low interest rate and provides loans to individuals,

company, firm and household at high interest rate. The difference between this interest

rate is banks profit. Its also provide the loans to the governments. It reserves some

part of its deposits to the State bank according to the requirements of State Bank of

Pakistan. The source of income of NBP is the difference of the rate of interest at which itborrows and lends to the customers as well as investment in the market. So bank is a

profit earning institute. With the passage of time its important in financial sectors is

going to increased now it has also played an important role in financing the countrys

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

There are various accounts such as current, PLS Saving, basic Banking Account (BBA)

and PLS Term Deposit accounts in which people deposits their money and gold. It also

provides various services on the behave of their customer like

Providing the agency services according the instructions of their customer like

deposits the utility bills, received or payee payments.

Providing the hajj services to the hajjes


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To make loan for needy persons like industrial, agriculture, individual, household

and firm at low interest rate.

To also make loan to the Government.

To establish economic stability

To purchase the securities

Make is sure secrecy of its customer from other

Provide the locker services to its clients

Sharing accounts

To act as a intermediaries between buyer and seller

Transfer the funds for customer from one place to another place

Transfer the funds for customer from one place to another place

To promote international trading

To promote the international relationship

To reserve to the State Bank of Pakistan

Financing of projects, including technical assistance, project appraisal through

long term/ short term loans.

Make is sure of seasons loans like wheat, rice, sugar cane,, etc.

To provide the remittance services

To provide the guide line about the crops

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

To payment the pensions

5.2.3 Business volume and rewards

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

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

bank's top position in the world was.

Kisan Times Award that is the about by banks agriculture loan strategy

5.2.4 Products of NBP

NBP Premium Amdani

Monthly Income Scheme


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Time period is from 1 to 5 year

Earn up to 12% p.a.

Minimum deposit of Rs. 50000/- and a maximum deposit of Rs. 5,000,000/-

for 5 years

Free Demand Draft, Pay Order

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

Free NBP Cash Card (ATM+Debit)

Running finance facility up to 90%

Premium Saver Home Page

NBP Saiban

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

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

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

period.

Finance is available for home purchase, home construction and home

improvement.

Period of repayment ranges between 3 to 20 years.

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

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

Minimum approval and disbursement timing.
http://www.nbp.com.pk/Premium/index.aspxhttp://www.nbp.com.pk/Premium/index.aspxhttp://www.nbp.com.pk/Premium/index.aspx


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NBP Advance Salary

10 month salaries in advance (certain conditions apply).

Minimum documentation.

Repayable in 5 years.

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

Mark-up charged at 11% per annum on reducing

Cash Card

Investor Advantage

NBP Cash n Gold

Facility of Rs.25000 against 1 Gms of gold.
http://www.nbp.com.pk/cashcard/index.aspxhttp://www.nbp.com.pk/Margin/index.aspxhttp://www.nbp.com.pk/cashcard/index.aspxhttp://www.nbp.com.pk/advancesalary/index.aspxhttp://www.nbp.com.pk/Margin/index.aspxhttp://www.nbp.com.pk/cashcard/index.aspxhttp://www.nbp.com.pk/advancesalary/index.aspxhttp://www.nbp.com.pk/Margin/index.aspxhttp://www.nbp.com.pk/cashcard/index.aspxhttp://www.nbp.com.pk/advancesalary/index.aspxhttp://www.nbp.com.pk/Margin/index.aspxhttp://www.nbp.com.pk/cashcard/index.aspxhttp://www.nbp.com.pk/advancesalary/index.aspxhttp://www.nbp.com.pk/cashcard/index.aspx


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Mark-up 15% per annum.

No maximum limit of cash.

Repayable after one year.

Roll over facility.

No penalty for early repayment.

Kisan Taqat

NBP Kisan Dost

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

installation of wells, purchase of agricultural equipment, micro-loans for godown

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

etc

Mark-up 11% per annum.

Loans available at the farmers doorsteps.

Agricultural experts to guide farmers.
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Loans available against agricultural passbooks, gold ornaments and paper

security.

Pak Remit

5.2.5 PEST ANALYSIS

PEST analysis means political, economic, sociocultural and technological forces that

affect the bank. It is very important to know about your environment before beginning

the marketing process. It is consisted of

Internal factor such as staffs members, office technology etc.

The micro-environment e.g. our external customers, agents and distributors,

suppliers, our competitors, etc

Political

Political pressure and thread

To high rate of tax

To reserve deposits to State Bank of Pakistan

Privatization policy and deregulation

To hire middle education and low experience people.
http://www.nbp.com.pk/Pakremit/index.aspxhttp://www.nbp.com.pk/KisanDost/Index.aspxhttp://www.nbp.com.pk/Pakremit/index.aspxhttp://www.nbp.com.pk/KisanDost/Index.aspx


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Economical

Economy of Pakistan is facing issues about employment, inflation, illiteracy, which are

hurdles in business growth.

Restrictions in movements of public saving to control the inflation.

Bad debts

Social & Cultural

Cultural issues can be there but still as there are a number of multinational companies

there, therefore cultural issues are not prominent

Not efficient use of human resources

Not timely audit

Wrong use of authority Not proper distribution of work according of the worker skills

Cultural strains to saving

Technological

People are highly skilled and NBP can introduce new technology to increase competencies.

5.2.6 Contribution of organization toward economic development

NBP plays important role for the welfare of society by reducing the hurdles in economic

developments. It provided short and medium term loans to start up the business to the

people. It also provides the taxi, Chandigarh etc with the monthly installments to the

people. It has a wide range of consumer products, to improve business and cater to

different segments of society. Some schemes are specifically designed for low to middle

income segments of the population.

As financial system, NBP channels funds from savers/investors to those who

require funds for building infrastructure, starting and running businesses, building

or improving houses, consumer financing of big-ticket items like automobiles, etc.

As in GDP, NBP is helpful in the growth of economy of Pakistan.


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NBP offers on line services, so reduce the costs of transportation for the transfer

of money, it is also beneficial for the economy of Pakistan.

NBP has a broadest branch network in Pakistan, it has almost 1450 branches in

Pakistan so performing their functions and contributing to the growth of the

economy.

NBP plays its major role by providing loans and finance to the people having

investment opportunities which is a major function of any financial institution.

National Bank of Pakistan (NBP) is a bank, that plays a very important role in any

economy.

5.3 Organizational structure

5.3.1 ORGANIZATIONAL CHART OF NBP

DESIGNATIONS FO HIGHER LEVEL OFFICE:

PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22

EXECUTIVE VICE PRESIDENT

GRADE 21

VICE PRESIDENT


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GRADE 20

ASSISTANT VICE PRESIDENT

GRADE 19

GRADE I OFFICER

GRADE 18

GRADE II OFFICER

GRADE 17

GRADE III OFFICER

GRADE 16

Senior management

Qamar Hussain

Chief Operating Officer, Head of Credit & Risk Management Group

Dr.Asif A. Brohi

SEVP & Group Chief, Operations Group

Shahid Anwar Khan

SEVP & Group Chief, Overseas Banking Group / Corporate & Investment Banking

Group

Ziaullah Khan

SEVP & Group Chief Agriculture Finance Group


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Dr.Mirza Abrar Baig

SEVP & Group Chief, Human Resources Management & Administration Group

Amir Siddiqui

SEVP & Group Chief, Commercial & Retail Banking Group

Tariq Jamali

SEVP & Group Chief, Compliance Group

Nadeem A. Ilyas

SEVP Group Chief, Assets Recovery Group / Corporate & Investment Banking Group

Muhammad Nusrat Vohra

SEVP & Group Chief, Treasury Management Group

Khalid Bin Shaheen

SEVP & Group Chief, Global Home Remittance Management Group

Imam Bakhsh Baloch

SEVP & Group Chief, Audit & Inspection Group

N.B.Soomro

SEVP, Special Assignments, President's Secretariat

Agha Fidaullah

EVP/Group Chief, Special Assets Management Group

Shafique Ahmed Khan

EVP & Divisional Head, Islamic Banking Division

Ikhlaq Ahmed

EVP & Secretary Board of Directors

Fazal-ur-Rehman

EVP & Head P&IR Division, HRM&A Group


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Muhammad Hanif

EVP & Head HR & OD Division, HRM&A Group

Muhammad Iqbal Qasim

EVP & Head SC & CSR Division, HRM&A Group

Tahira Raza

EVP & Head Risk Review Division, Credit and Risk Management

Ali Hassan

SVP & Divisional Head, IT Division / Chief Information Security Officer

Aamir Sattar

SVP & Divisional Head, Financial Control Division

Faisal Mahmood

VP & Divisional Head (A) , PMO & Project Director CBA

5.3.2 Number of employees

Total current staff position of NBP is as follow

Permanent 13450

Temporary/ On Contractual basis 921

Bank's own staff strength at the end of the year 15015

Outsourced 2589

Total Staff Strength 19429


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The bank has been named the best bank his entire career of 62 years old. Bank is

currently in many cities of Pakistan with the network of 1450 branches. The bank is

currently operating with approximately almost 19429 employees throughout Pakistan

and abroad. Bank is not only providing services in the 21st century Pakistan, but also

creating job opportunities for the young blood of Pakistan.

5.3.3 Main offices

Offices or field offices

National bank is the one of the biggest bank in Pakistan having more than 1450

branches that is serving the customers.

Head office of National Bank of Pakistan:

National Bank of Pakistan, Head Office

NBP Building, I.I. Chandigarh Road,

Karachi, Pakistan.

Domestic Branches:

The National bank of Pakistan has 1432 branches in the Pakistan. That is operating in

whole of Pakistan in

Punjab

Sindh

Baluchistan

Islamabad

Azad Kashmir

Overseas branches:

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

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


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Canada

Germany

France

Bahrain

Saudi Arabia

Bangladesh

Hong Kong

And many more countries around the globe

5.3.4 DEPARTMENTATION OF NBP

Banking procedures are divided between different departments. Different departments

do their work in the presence at the bank policy. The National Bank of Pakistan everybranch is divided into different sections depending on their size and volume of business.

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

procedures. The departments working within the National Bank of Pakistan Jandu-ke-

Guraya branch include:

1. Cash department

2. Account Opening Department

3. Clearing House Department

4. Advances Department

5. Remittance Department

6. pension and disbursement department

7. Deposits Department

8. Accounts Department

1. CASH DEPARTMENT

All physical movements of cash transactions activities are performed in the cash

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

the Bank. Another aspect is that cash department for security purpose, security in a
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sense that there was no misappropriation of funds or cash led to the bank by a party or

person.

2. ACCOUNT OPENING DEPARTMENT

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

department performs the duty of opening accounts for customers. If a customer wants

to open an account in the bank then account department needed some documentation

and analysis of the document information after the officer takes notes in opening an

account register and issue the account number of the customer. After pouring some

customer can operate his account.

3.CLEARING DEPARTMENT

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

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

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

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

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

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

4.ADVANCES DEPARTMENT

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

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

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

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

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

is usually earned through this department. The advances Department receive

application from intending borrowers. After receiving application the advance

department processes it further. After analyzing and detailed investigation, they decide

whether to approve the loan or not. Some loan approvals are made by the Manager of

the branch within his powers as prescribed by the banks higher authorities, while some

loan applications are submit to higher authorities for their approval.


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5. REMITTANCES DEPARTMENT

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

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

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

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

6. PENSION DISBURSMENT DEPARTMENT

The National Bank of Pakistan was Pakistans leading institution which performs the

function of pension payments or disbursements to pensioners. The pension

disbursement department is responsible for making pension payments to Government

Pensioners. The person who wants to receive his/her pension from National Bank ofPakistan can open an account with any branch of National Bank of Pakistan The bank

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

7. DEPOSITS DEPARTMENT

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

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

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

accepts / collects deposit account holders.

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

includes the following:

Current Deposits

PLS Saving Deposits

Fixed Deposit Account ( Time Deposits)

Foreign Currency Account

NBP Premium Amdani


National Income Daily Account (NIDA)

8. ACCOUNTS DEPARTMENT


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

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

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

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

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

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

department.

General Ledger- Abstract

Check Book Issue Register

Western Union payments Register

Demand Notices

Miscellaneous Book

Bank Transfer scroll

Posting NBP Advance Salary

Daily Statement- F21

General Ledger- Head wise

End of Day register

Posting National Income Daily Account (NIDA)

Monthly return register

Charges A/c register

P-L-S Profit list

Weekly Telegram

Mail Transfer Register

Government Scroll

Provident file

Government Scroll Debit & Credit

Transfer Responding Advice Dispatched Register-F15

Cash Remittance IN

Cash Remittance OUT

NBP General Account


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Utilities register

Closing entries

Daily activity checking

Minor expense recording

Registers of banks

Attendee register b-1

Account opening b-127

Clearing register b-89

Post register for other bank b-99

Postage letter of thanks b-99

Gold leader b-74

Cheque book register b-60

Token register b-4

5.3.5Comments on the organizational structure

During my stay in the National Bank of Pakistan, I found it as one of the best banks in

Pakistan. As an internee, I enjoy working there. NBP has a very cooperative staff. I

worked there in a very sympathetic and supportive environment.

It offers very good package of salary and benefits to its employees. Management tries

to regulate a system for promotions. It has both regular and contract employees, such

as views on the use of strangeness for the cross fertilization of ideas. It offers its

employees unlimited in terms of economic welfare and development. National Bank of

Pakistan provides many benefits and allowances to their employees (directors, officers,

employees and non employees).


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5.4 Internee work

5.4.1 Brief introduction of the branch

I worked in National bank branch situated at circular road Mundaki chwke. I did my

internship from 01-08-11to 07-10-11. Jandu-k-Guraya branch is not offering all the

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

offices or head office level but still providing enough services. The branch is well

equipped with all the required resources which are needed in order to provide good

services to the customers. 8 employees are working in this branch.

Branch Name Jandu_ ke_Goraya

Branch Code 0670

AddressNational Bank of Pakistan Jandu_ke_Goraya, district

Sialkot

Phone 052-6623272

Fax 92 052 6623272

Tehsil Daska

District Sialkot

Province PUNJAB

SWIFT Code ---

Branch Details


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Status Not yet online

Email [email protected]

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MMrr.. AAmmiirr NNaassiirr AAhhmmeedd MMrr..AAkkmmaall IImmrraann SSwweeaatt IImmrraann VVeerrkk

5.4.2Introduction of supervisor

I have done two moths internship in NBP Jandu-ke-Guraya. During these two moths my

job was rotating in different departments. My supervisor name is Mr. Amer. He is

supervised me. He is a resident of Daska city. He is very sound mind and hard worker.

Allah gives him all qualities to understand the situation and solve them easily and

quickly. I am very lucky that Mr. Amir supervised me. His qualification is BA. In the very

first day of my internship, he teaches me how to work hard and control the temper in

frustrating the general vicinity of the bank and confronted with the problems. I am very

enjoyed his company

Companion who accompanied me in all aspects of general banking risks during the two

moths of my internship. Under his supervisory he tells me the types of accounts and all

relevant information about the bank.
mailto:[email protected]:[email protected]:[email protected]


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Department Weeks Date Day Daily Work

Cheque writing

department

Week

1

01-08-11Monday

Introduction with all the Staff member of the

branch

Cheque writing

department 02-08-11Tuesday Introduction to about the cheque

Cheque writing

department 03-08-11Wednesday Kinds of cheque

Cheque writing

department 04-08-11 Thursday Kinds of cheque

Cheque writing

department 05-08-11Friday Cross cheque

Supervisor Name: Mr. Amir Signature -------------


Deposits

Department

Week

2

08-08-11

Monday Cash voucher

Deposits

Department

9-08-11

Tuesday Cash voucher

Deposits

Department10-08-11

Wednesday Cash and Transfer voucher

Deposits

Department

11-08-11

Thursday Cash and Transfer voucher

Deposits

Department

12-08-11

Friday Cash and Transfer voucher


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Supervisor Name: Mr. Imran Signature -------------


Remittances

Week

3

Monday Introduction to Remittances

Remittances 15-08-11 Tuesday Introduction to demand draft

Remittances 16-08-11 Wednesday Introduction to demand draft

Remittances 17-08-11 Thursday Introduction to Pay Order

Remittances 18-08-11 Friday Introduction to Pay Order

Supervisor Name: Imran sweat Signature -------------


Remittances

Week

4

22-08-11Monday

Introduction to Online transfer and

receiving of Cheques

Remittances 23-08-11 Tuesday Receiving the cheques of same branch

Remittances 24-08-11 Wednesday Fixing the stamps on Cheques

Remittances 25-08-11 Thursday Passing the cheques to cash counter

Remittances 26-08-11 Friday Receiving the Online Transfer

Supervisor Name: Sir Amir Signature -------------


Account

OpeningWeek

5

29-08-11

Monday The process of account opening

Account

Opening 30-08-11Tuesday Detail information to account process

Account

Opening 31-09-11Wednesday Able persons who open the account


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This is weekly time table

Account

Opening 01-09-11Thursday

Entering data of new account holder in the

register

Account

Opening 02-09-11Friday Privacy information

Supervisor Name: Imran Virk Signature -------------


Advance loan

department

Week

6

06-09-11Monday The procedure of inquiry

Advance loan

department 07-09-11 Tuesday The procedure of inquiry

Advance loan

department 08-09-11Wednesday dealing with customer according loan used

Advance loan

department 09-09-11Thursday

Issued loan against gold pledge

.

Advance loan

department

10-09-11Friday Issued loan against gold pledge

Supervisor Name: Mr. Imran Signature -------------


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5.4.4 Detail description of the departments in which work

ACCOUNT OPENING DEPARTMENT

The procedure of the account opening in the bank is very simple. For this purpose bank

has a separate department in the bank. If anyone is willing to open the account in the

bank, it is investigation about the new account holder through ID card investigation. For

this purpose firstly bank requires of ID card copy and then sends it to the main office for

the. But the business organizations such as sole proprietary concerns, partnership

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

trusts, societies, associations and NGOs etc, may open their accounts. The primaryfunction of National Bank of Pakistan is to accept and receive surplus money from the

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

customer there is a need for developing banker customer relationship and account

opening department perform this activity.

PLS Saving Deposits

Fixed Deposit Account ( Time Deposits)


NBP Premium Amdani


National Income Daily Account (NIDA)

REMITTANCES DEPARTMENT

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

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

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

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

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


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Pay Order

Demand Draft

Mail Transfer

Telegraphic Transfer

Pay Slip

Call Deposit Receipt

Letter of Credit

Travelers Cheque

Kinds of Remittances

There are various types of remittance according their inflow and out flow.

1. Inflow

2. outflow

It may be whining the country or outside the country. When remittance come from

other the country it is called is inflow and when remittance goes outside the country is

called outflow. It may be transfer within the branch or it may bet transfer from one

branch to another. It may be transfer from one bank to another bank in the same city or

transfers from one bank to another bank in two cities.

Clearing Department

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

are processed and subsequently settle by the clearing department.

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

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

It must have account with State Bank of Pakistan

Sufficient balance should be in his account

Types of Clearing

There are two types of clearing Inward Clearing and Outward Clearing


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1. Inward clearing mean the cheques of other bank comes in the NBP

2. Outward clearing mean that the chaques of NBP go to the other branches.

Clearing charges

When the cheque is send outside the district then there is RS. Is =75/=. But within the

district there is no any charge. If any cheque is returned due to any reason then there is

Rs. =200/= charges. Commission is 2% at it. FED rate is 16% on the commission

5.4.5 Description of the operations performed in concerned department

Requirements for Account Opening and closing of Account

First, bank gives an account opening form to the customer and received the relevant

information to the customer. Then he attaches a photocopy of his ID card and make his

sign. Now he fills the pay-in slip and deposit money on the counter. Following things are

needed for opening of account: in which Account opening form, Letter of thanks, Next of

kin, Specimen Signature card, Issuance of cheque book. In account opening form

customer make two time sign also in specimen signature card. Letter is thank send to

new account holder in which bank say the new account holder to thanks to open the

account in the bank.

Following things are needed for opening of account:

Account opening form

Next of kin

Issuance of cheque book

Letter of thanks

Specimen Signature card

Account Opening Form

Account opening form consist of

Individual Account( single/joint)

Nature of account and currency


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Individual Account (address/contact information)

Personal information-Applicant No. 1



Details of other banking relationships

Account operating instructions

Next of kin

Customer Profiles( know your customer)

Name and signature spaces

Specimen Signature Card

The specimen signature card consists of

1. .Name:

Specimen signature

2. Name :

Specimen signature

3. Account no.

4. Attestation

5. Empty box must be cancelled before attesting the signatures.

Next of Kin

In case of death account holder then next of kin operate his account. It is consisted

Name

CNIC NO.

Relationship


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Address

E-mail

Tel(off)

Residency

Mob.

Letter of Thanks

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

1st

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

2nd

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

account.

Issuance of Cheque Book

When customer has opened the account after one week cheque book will issue. Some

cheques have 25 leaves or 50, 75 or 100 leaves. Per leaves is charge is Rs=5/=.

Cheque book chargers is deducted from the customer account

Closing of Account

There is lot of reasons that account is closed included

Insufficient balance when account not operate last six months

On the death of account holder and there is no other of kin

Criminal person that govt. sue upon him

On the own request of account holder

Term deposit account ended when his time period over

Account holder Owen request Death of account holder

Closing of account due to the bad manners of account holder


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PAYMENT ORDER.

A payment order is a written order issued by the Bank on its own branch, drawn upon

and payable by itself to pay a specified sum of money to the person. The purpose of

payment order is to transfer the fund form one place to another place. It is usually notissued in favor of the parties of other cities

Functions of clearing department

In the clearing department following operations are performed

To accept Transfer,

To transfer delivery,

To collect cheques of the branch and to arrange for their collection.

To receive and scrutinizing the cheques and other deposit instruments, and the pay-in-

slip at the counter

Fixing the stamps

Scrutiny and receipt by the authorized officer

Returning the counter file to the depositor

Certificate and confirmation by the officer in charge of the department


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

Functions of Remittance department

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

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

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

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

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

currency. MCB uses following instrument for transferring of money

Demand Drafts (DD)

Telegraphic Transfer (TT)

Demand drafts (DD)

Mail transfer

Pay order

Demand Draft

It is a secure method to transfer money from one place to another. There are zero

percent chances to theft the money. Mostly big business men used DD to pay or receive

cash from each other. It is a written order given by the branch of the bank on behalf of

the customer to other branch of the same bank to pay the certain amount to the

customer. DD are issued for the particular place other than place of issuance. A draft is

a Cheque drawn by a bank on its own branch or any other branch of another bank at a

different place requesting it to pay on demand a specified amount of money which is

already received to the person named on it. It is playing important role in international

trade. Multinational firm are used it to carry the amount from one country to another. It

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

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

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


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

processing of DD.

Bank Serial No

No. of DD

Central No

Rs.60 Postage charges

0.02% Withholding tax

Telegraphic transfer (TT)

It is given from one bank to other on the behalf of the customer through

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

parties account mentioned in TT. It is an inter bank transaction. Through this method

applicant can transfer money from one place to another place.

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

commission. It is consist of Issuing Branch Name & Code, Beneficiary Branch Name &

Code, No. of TT, 60 Rs. for Postage and 140 Rs. for Fax, Amount in words & Figure,

0.02% Withholding tax.

Mail transfer

It is also send mail from one bank to other on the behalf of the customer through

internet to debit their inter office account through them and credit their parties account

mentioned in mail. It is an inter bank transaction. Through this method applicant can

transfer money from one place to another place. Move your money safely and quickly

using NBP Mail Transfer service. And we also offer the most competitive rates in the

market. One of the requirements to affect remittance through Mail Transfer is that the

customer should be an Account Holder. WAPDA is only one company in Pakistan

which is exempted from any bank charges on Mail Transfer of money. Otherwise, Bank

charges a certain amount on for effecting remittance through Mail Transfer. Bank

Charges are announced through a circular bi-annually.

PROCEDURE FOR MAIL TRANSFER.

1. First a voucher is filled and the required amount is deposited at the cash

counter


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2. The cash department sent the MT voucher to the accountant for scrolling

3. MT is prepared and the authorized officers affix signature on it.

4. Then the MT is dispatched to the concerned branch for credit into respective

account.

PAYMENT ORDER.

A payment order is a written order issued by the Bank on its own branch, drawn upon

and payable by itself to pay a specified sum of money to the person. The purpose of

payment order is to transfer the fund form one place to another place. It is usually not

issued in favor of the parties of other cities.

PENSION DISBURSMENT DEPARTMENT

The pension disbursement department is responsible for making pension payments to

Government Pensioners. The National Bank of Pakistan was Pakistans leading

institution which performs the function of pension payments or disbursements to

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

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

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

So it has very important role in payment to the pensions holders this department

performs following functions:

Making Pension Payments

Opening of Account of Pensioner

Entry of amount paid to pensioner in Government Pensioners Register

Verifications of Signatures of Pensioners

Making Demand Draft Purchase Register

Loan to general public

Bank is given to the customer against gold. Band reserve the gold of on tola and give

loan Rs=25000/= and received the mark up at the rate of 15.50%. For example if any

customer take loan Rs. =100000/= against his gold, that customer give mark up extras


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=15500/= at the rate of 15.50% with the principal amount. If loan holder don\t response

to the bank during or after the year then bank issued a notes in which bank informed the

customer that band has the right to sell of your gold in order to fulfill the loan amount. If

bank cant recover its loan amount to, the bank recover amount through court.

Loan to servants

These loans are generally given to the employees of the Bank. These loans are given

for:-

1. Purchase of motorcar.

2. Purchase of motorcycle.

3. Purchase of computer.

4. Construction/ purchase.

These loans are repayable in monthly installments directly from the salary of the

employees. Some loans are free of mark up and on some markup is charged.

Introduction to cheque

Cheques book is such book that issued to the account holder. It is consisted 25, 50, 75

or 100 leaves. Per leave is Rs. =5/=. It is used by the customer to withdraw his account

from his bank account.

Date

Account no.

Leaves no

Pay

Amount in figure

Amount in words

Account holder signature space

Introduction to the Pass book


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Pass book Is now issued to thumb holder without any charges. It is consisted of

Title of account

Picture place

Account no.

Address

Balance

Bogus cheque

When there is no balance in the account holder and he issued a cheque to the third

party to order its payment then it is a bogus cheque. So bank protects it through memo

receipt. Cheque is bogus if

Effects not yet cleared, please present again

Not arranged for

o ----payees endorsement require

o ---payees endorsement irregular

Insufficient funds

Drawers signature differ

Payees endorsement required bank guarantee

Alternation required full signature

Cheque is out of date

Cheque is postdate

Amount in words and figure differs

Crossed cheque must be presented

Advice not received from issuing branch authority

Payment stopped by the drawer

Payees separate discharge to the bank

Full cover not received

Funds drawn against not yet received may be present again


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5.4.6Detail description of the tasks assigned

I have done internship of two months in NBP. It is great chances for me to learn

practical experiences and knowledge about the various departments. I got the

knowledge about current accounts, PLS saving account, debit voucher, credit voucher,

process of new account open, the persons who able to open account, the persons who

not able to open the account, types of accounts, transfer, bogus cheque, memo receipt,

clearing works etc. I have divided it according week that is mention above. As stated

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

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

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

large number of tasks in this section is for two weeks of my internship at the National

Bank of Pakistan Jandu-ke- Goraya branch of the kind guidance of my supervisor Mr.

Amir Cheema On the first day of my internship my companions introduced me to all

employees in the bank and tell me about the different departments of general banking

risks involved in the bank and the activities conducted in these departments.

The next day I join the pension cell and this cell I almost made increases in the pension

and the pension issue and the scrolling of the amount of the pension and the calculation

of the total at the end of the day. In the same week I also join the department advances

in the industry and learn about the different types of credit offered in the industry, theirneeds, abilities, and interest and calculations, "the renewal of the cases and closing the

various cases in the credit department. I have been through several departments and

performed the various tasks given to me by my immediate supervisor. At the end I will

only say that I really enjoy working of banks and learn a lot about banking, which every

person should know who is a general account and dealing with the banks familiar with

these procedures really help in the routine life, while trading in banks.

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and if the information matches than taking the print and fixing the marks.

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

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

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

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

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

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

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

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

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

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

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

In the last 15 to 18 days of my internship, I was guided by my immediate supervisor


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about the department and the clearing operations conducted in the department and the

importance of the clearing department of a bank. He tells me about the intercity clearing

and how that service is performed by the NIFT and the functioning of the NIFT and the

role of the banking industry, which operates as a subsidiary organ of State Bank of

Pakistan then I started working when practically my supervisor guided me how practical

the check clearing for active and how to check for the clearing send and receive. But

first of all he tells me what kinds of checks, the Customs Clearance, Customs Clearance

including the checks drawn in the industry, other than the controls of the National Bank

of Pakistan. I started receiving checks for Clearance by filling out the coupon and

attaching the check with the slip of NIFT and then write the name of the person, the

amount, check number, city, and the bank and the introduction of the e-mail box of the

NIFT. All day I enter same activity in the clearing department, and I enter the Clearance

nearly two days continuously and I was enjoying this activity and feel good.

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

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

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

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

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

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

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

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

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

5.4.7 Internship Learning Summary

The main purpose of doing an internship is not only to meet the academic requirementor the achievement of good quality, but also to learn about the application of our field of

study in our relevant market. During of my internship, I learned a lot and learn the real

impact on my future life or career or social life in a society. In this learning phase the

institution you are doing your internship mater also a hope, as the cultural institutions in


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the core values and beliefs of the people and their attitude towards the organization of

these elements influence the learning process.

Skills and Qualifications:

Internship is the best source of enhance your skills, experiences, knowledge and public

relationship about the practical life.

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

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

not show a real interest in this healthy activity as I've seen or observed in my area but in

my opinion completely wrong attitude that develops in the students. I have learned

many of the skills. I shall share some of those skills I have learned throughout this

period of the internship.

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

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

the prevailing problems.

How can I post to absorb pressure and achieve the desired result brave step

The development of coordination between job performance and between yourlifestyle so you never have enough of the routine activities of your professional

life

To improves my communication skills and above all the talking and the

influencing power. How to work in a team led by someone and how to deal with

colleagues in your professional life.

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

The most interesting and important things I have learned and skills developed in

me because of the Internship communication with hundreds of clients I know

about the psyche of people with communication.


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To manage the finance

Customer relationship management

Responsibilities:

Firstly I undertook the responsibility of the punctuality and the

development of the attitude I need it on time so that everyone can not

develop the negative thinking about me

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

several general banking counters and I have different responsibilities in

this period in each department. Now at this point I will generally talk aboutthe responsibilities I have undertaken in this period listed below. Does it

work hard and accomplish the assigned tasks on time.

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

Affects of internship on future career plans

It is true that every one feels hesitation in new place. Befo re the internship I havent

practical experiences about any thing. I was very confusion about my internship.

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

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

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

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

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

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

clear position in an institution of the future because too mush Banking scope and onecan grow as he dreamed in his life with hard work and dedications. So I have decided to

do my specialization in finance field and may Allah bless me to come in banking sector.

Correlation Between the internship activities and class room knowledge


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There is no difference in class room activities and practical work in the organization.

The practical work is very easy as to compare with theoretical work. It is my own view

that the activities I have done in the classroom and actually working in the market of the

correlation, but not too many highly correlated in my opinion. So I think there is a need

to change the academic syllabus and classroom activities that can be the future

workforce, according to the market requirement to produce.

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

system must be fostered at all levels with students how their academic knowledge into

practical work that will benefit him in his future life to be cleaner

6.1 Conclusion

It is true that banking sectors is playing important role in the redevelopment o f thecountry. It is playing role like blood in the economic development. It appears from this

report and the accounts of the NBP will progress by leaps and bounds an aggressive

and innovative financial institution and continue to stick to the tradition of understanding

the customer needs and looking for new ways to serve them, the earnings of NBP have

grown considerably in recent years and this trend is expected to continue into the future.

Further integration and productivity will result in better performance in terms of turnover

and service quality in the coming years, therefore, we conclude that NBP is a very

prosperous present and future, in which the shareholders of wealth maximization is

assures. The strong leadership of Directors and management and the continued efforts

of staff at the National Bank will be able to more superior products and services to

clients and contribute more to economic and social development of Pakistan, while the

development of a greater future. Side by Side of the "I think if the bank would cover

these recommendations and it would control in such a situation that will actually lead to

the path of prosperity, development and integrity of Pakistan

6.2 General observation about the sector

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

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

and difficult to achieve the goals, but one can find the status of respect and honor to


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earn in society. But the need of time is to solve the economic crisis and terrorism in the

country. The foreign investor to find the potential and willingness to invest in the banking

sector, but due to terrorism are not very well feel that it is a safe investment because of

this reason they recover their investment and the need to the problem and increase

foreign and domestic investors to invest in and play a vital role in economic

development of the country.

6.3 SWOT ANALYSIS

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

strength and weaknesses and opportunities and threats are analyzed by organization

from the external environment. NBP SWOT analysis is given below

Strength

Weakness

Opportunities

Threads

6.3.1 STRENGTH

It is a single bank in Pakistan that control by the Govt.

Huge amount of cash transition are traded from NBP.

One of the National Bank's brand is its great strength. .

Now the bank has the ability to compete with multinational bank and keep pace

with the changing and rapidly expanding world of the computer have become

necessities today.

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

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

and maintaining standards of excellence worldwide and other strengths of NBP.

Standard services


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Huge amount of deposits

National Institutions

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

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

the future and thus NBP is the most reliable and trustee institution inPakistan

ORGANIZATION CULTURE

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

cooperative environment among themselves. They have created loyalty to the

organization to deviate from their future efforts and energies. The staffs take the

organizational problem personals and try their best for the prosperity of the

organization.

STRATEGIC TOP MANAGEMENT

Fortunately NBP has from time to time best top management. Currently, the NBP

President he is the person who has saved the lives of the organization and a major

contribution

INDUSTRIAL POLICIES

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

to economic growth of the country.

LENIENT POLICY WITH THE CLIENTS

Dit is een van de beste beleid van NBP dat het niet onbeschoft gedrag gehouden met

deze klant indien zij te laat in hun terugbetaling van de lening. Maar het heeft neemt

mildere manier in het omgaan met hen, helpt zij haar klanten in de terugbetaling te

maken herschikking en herstructurering van hun leningen.


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6.3.2 WEAKNESSES

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

several experienced and dedicated employees were either forced or offered the

opportunity to leave.

LESS ATTENTION TO THE RURAL DEVELOPMENT

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

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

country.

POOR ADVERTISEMENT

I observe this sharp, in comparison with other banks. NBP is very poor in advertising

themselves and establishing that many works in the development of the country, but

unfortunately most people in business to the award of the .

POOR NETWORK

NBP 1255 has offices in major cities of Pakistan and abroad that other competitors do

not have despite all the branches are online and yet people have to wait.

Political interference

Political interference in the recruitment system

Uncertainly among the employees due to threat of downsizing

6.3.3 OPPORTUNITIES

.

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

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

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

to 5 Pm. Hours. NBP is considering setting up an exclusive utility bank in collaboration

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


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GOODWILL AND BETTER IMAGE

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

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

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

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

explanation of its activities.

GROWTH IN THE INDUSTRIAL SECTOR

NBP important function is to finance projects and does it with full commitment.

Fortunately industrial sector is now-a-day Pakistan is growing again so the business

opportunities of NBP.

6.3.4 THREATS

DINSTABILITYPOLITICAL INFLUENCE AN

SICK PROJECTS

LACK OF MODERN BANKING TECHNIQUES

DINSTABILITYPOLITICAL INFLUENCE AN

This is the major threat to any business organization in Pakistan because of politicalinfluence NBP officials in the financing of projects that are not viable or write off the

loans are still able to pay the political influence caused many problems in daily course of

business as profitability of NBP. Political industry is even a threat to NBP in the sense

that once the policies and procedures approved by the government.

LACK OF MODERN BANKING TECHNIQUES

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

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

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

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

efforts of the corporation.


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7. RECOMMENDATIONS & SUGGESTIONS

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

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

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

operates on the basis of sound professional. While head office sets the whole

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

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

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

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

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

The recommendations are as follows

Professional training

Delegation of authority

Performance Appraisal

To Over Come Problem of Space and Furniture


Need Qualified Staff

Link with the Head Quarter:

Clean Loans

Decreasing Administrative Expenses

Technological Advancement

Avoid Political interference

Complaints of Customer

Marketing Policy

Professional training

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

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

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

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


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changing global scenario economic growth. Pakistan Banking Council should also

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

Delegation of authority

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

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

responsible to delegate authority to which they think will perform the batter.

Performance Appraisal

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

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

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

more efficiently.


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

suggested that a separate section should be done within the branch. It should address

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

functions at the time of the evening.

Need Qualified Staff

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

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

Link with the Head Quarter:

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

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


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

convenient.

Clean Loans

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

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

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

become a part of bad debts.

Decreasing Administrative Expenses

Bank should lower their administrative costs. These were Rs 12 billion in 2004. That can

be done while lying off surplus pool of employees with the golden handshake scheme.Branches that are not used much can be closed. An employee may be how to control

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

Technological Advancement

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

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

Each department should ensure a computer with adequate training (especially

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

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

hours).

Complaints of Customer

There should be an information desk to provide information and receive customer

complaint to the bank. There is no complaint box available in branches and not every

person appointed to hear complaints. Any person may go to the manager to appealbecause most people are hesitant. So I suggest to management to install a box on line

at the branch, and recruit a special person for this guide consumers when they are not

able to manage some difficulties in banking issues.

Avoid Political interference


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

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

7.1 Recommendations with their feasibility (economics, political,

financial)

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

to be improved.

The procedure for providing services must be easier and straight forward not

involving long procedure for simple task.

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

complexity.

The bank should develop software for pension disbursement.

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

development should design, develop and deliver product and services for

economic growth.

The NBP should adopt modern banking tools and techniques. Quality

leadership, clear vision, investment in IT infrastructure and human resource

development.

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

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

reporting.

NBP major fault is that wasnt keep its pace with on going changing in

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

trying to approach other banks.

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

also making its facility accordingly to modern banking.


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8. REFERENCES

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

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

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

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

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

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

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

NBP Annual Report 2009

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

NBP Quarterly Report September 2007

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

NBP Quarterly Report September 2007

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

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

http://www.nbp.com.pk/Premium/index.htm
http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdfhttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf

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