NBP Usman Final Report

1. EXECUTIVE SUMMARY

This report is about my internship that I have undergone at National Bank of

Pakistan, Main Branch Lahore from 5th July 2008 to 19th August 2008. The main

purpose of internship is to learn, by working in practical environment and to apply the

knowledge acquired, during the studies, in a real world scenario in order to tackle the

problems. The objective of this report is to fully describe my internship program and

sharing my practical experience of NBP with my teachers and other students. Efforts

have been made to compile this report in such a way that activates its salient

features not only for students but also for the layman. I have divided this report into

different sections. First section is about introduction of NBP in which I have

discussed golden history of NBP, vision, mission, core values and goals. Second

section is about Business structure in this I have discussed bank senior

management, corporate information, organization chart, structure and departments

of NBP. Third section discusses the business strategy in which SWOT analysis,

competitive strategy and business process analysis is discussed. Fourth section is

about marketing in which we discussed marketing strategies, target Market and

promotional strategies. Fifth section is about the finance in this I have discussed the

ratio analysis and financial analysis of balance sheet and income statement. Sixth

section is about HRM in this I have discussed Hr policies, functions and practices.

Seventh section is about conclusion and recommendations. Eight section is about

what I learn in the internship in this I will discuss my duties, accomplishment, new

knowledge acquired, problem encountered, and last how this experience impact on

my career.

1COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, JINNAH CAMPUS, LAHORE

2. INTRODUCTION AND BACKGROUND OF NBP

a. GOLDEN HISTORY OF NATIONAL BANK OF PAKISTAN

In 1949 (September) U.K. devalued its currency, India followed suit but Pakistan did

not. India said we had contravened the agreement of keeping both currencies at par.

We said we had not done that, India had done it arbitrarily without consulting us. On

October 3, 1949 the two central banks were to announce the new par value of both

currencies but India denied a day earlier. India also froze our trade - balance surplus

that is still an unsettled dispute. India also withdraws the Marwari merchants who

were employed annually for movement of jute crop by financing it. There being no

jute industry, prices fell sharply, foreign banks and foreign merchants stood aside

and an agrarian unrest was threatening.

Two Ordinances were, therefore, issued

1. Jute Board Establishment Ordinance &

2. NBP Ordinance dated 08.11.1949

National Bank of Pakistan was established on November 9, 1949 under the National

Bank of Pakistan Ordinance 1949 in order to cope with the crisis conditions which

were developed after trade deadlock with India and devaluation of Indian Rupee in

1949. Initially the Bank was established with the objective to extend credit to the

agriculture sector. The normal procedure of establishing a banking company under

the Companies Law was set aside and the Bank was established through the

promulgation of an Ordinance due to the crisis situation that had developed with

regard to financing of JUTE trade. The Bank commenced its operations from

November 20, 1949 at six important jute centers in the East Pakistan and directed its

resources in financing of jute crop. The Bank’s Karachi and Lahore offices were

subsequently opened in December 1949. The nature of responsibilities of the Bank

is different and unique from other banks/financial institutions. The Bank act as the

agent to the State Bank of Pakistan for handling Provincial/Federal Government

Receipts and Payments on their behalf.

Mr.Ghulam Farooq was chairman Jute Board and Mr. Mumtaz Hassan was chairman

NBP. Until June, 1950, NBP remained exclusively in jute operations, thereafter-other

commodities were also taken-up. After that Mr. Zahid Hussain, Governor SBP

assumed additional charge also as chairman NBP's Board of Directors, and Mr.

M.A .Mohair became its first M.D.


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

Mr. Mumtaz Hassan as Acting Governor of SBP.

In 1962 when Mr. Mumtaz Hassan became MD (He had already served NBP for 10

years as its Chairman of government Director), the number of branches had

increased from 6 to 239 and deposits from Rs.5 crore (50 million) to 106 crore (one

bn & 60 mln), profit from 3 million (3 Lac) to 21 million (2.1. crore) and the staff

increased from 380 to 7091, as compared to 1949-50. In Dec. 1966 its 600th branch

was opened raising the deposits to 2.31 bn. and staff to 14, 963. Up to 1965, the

shareholders had received 225% of their original investment. Now it has more than

21549 employees 1537 branches and Rs.208283 million deposits.

The Bank has also played an important role in financing the country’s growing trade,

which has expended through the years as diversification took place. Today the Bank

finances import/export business to the tune of Rs.62.17billion, whereas in 1960

financing under this head was only Rs.1.54billion.

The field is being de-layered to improve customer services and enable faster

decision making. As a result of this de-layering zones have been eliminated and the

numbers of regions have been increased. Organizational hierarchy at the regional

level has been restructured and operational and business activities have been

completely separated. This separation will improve communication, decision making

and promote teamwork.

b. VISION

To be recognized as a leader and a brand synonymous with trust, highest

standards of service quality, international best practices and social

responsibility.

c. MISSION

NBP will aspire to the values that make NBP truly the Nation’s Bank, by:

Institutionalizing a merit and performance culture.

Creating a distinctive brand identity by providing the highest standards of

services.

Adopting the best international management practices.

Maximizing stakeholder’s value.


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

countries where we operate.

d. CORE VALUES

Highest standards of Integrity.

Institutionalizing team work and performance culture.

Excellence in service.

Advancement of skills for tomorrow’s challenges.

Awareness of social and community responsibility.

Value creation for all stakeholders.

e. GOALS

To enhance profitability and maximization of NBP share through increasing leverage

of existing customer base and diversified range of products.


3. BUSINESS STRUCTURE

a.a. NBP SENIOR MANAGEMENTNBP SENIOR MANAGEMENT

Dr.Asif A. Brohi SEVP & Group Chief, Operational Group

Masood Karim SEVP & Group Chief, Co. & Invstment Banking Group

Ekhlaq Ahmed SEVP & Secretary Board of Directors

Tajammal Hussain SEVP & Group Chief, Special Assets Management Group

Nadeem A. Ilyas EVP & PSO to the President

Amer Siddiqui EVP & Group Chief, Commercial & Retail Banking Group

Imam Baksh Baloch EVP & Group Chief, Audit & Inspection Group

Shahid Anwar Khan EVP & Group Chief, Credit Management Group

M. Nusrat Vohra EVP & Group Chief, Treasury Management Group

Atif Hassan Khan EVP & Group Chief, IT Group

Dr. Abrar Baig SEVP & Group Chief ,HRM & Administration Group

Board of Directors

Chairman & President Syed Ali Raza

Muhammed Ayub Khan Tarin

Sikandar Hayat Jamali

Azam Faruque

Mian Kausar Hameed

Ibrar A. Mumtaz

Tariq Kirmani

Muhammed Arshad Chaudhry

Audit Committee

Chairman Azam Faruque

Ibrar A. Mumtaz

Mian Kausar Hameed


Auditors

Ford Rhodes Sidat Hyder & Co.

Chartered Accountants

M. Yousaf Adil Saleem & Co.

Chartered Accountants

Legal Advisors

Advocates & Legal Consultants Mandviwala & Zafar

Registered &Head Office

NBP Building

I.I.Chundrigar Road, Karachi,

Pakistan

Registrars & Share Registration Office

THK Associates (Pvt.) Limited

Shares Department, Ground Floor,

Modern Motors House,

Beaumont Road,

Karachi, Pakistan

Website www.nbp.com.pk


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

b. ORGANIZATION CHART OF NATIONAL BANK OF PAKISTAN

DESIGNATIONS FOR HIGHER LEVEL OFFICERS

PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT GRADE 22

EXECUTIVE VICE PRESIDENT GRADE 21

VICE PRESIDENT GRADE 20

ASSISTANT VICE PRESIDENT GRADE 19

GRADE I OFFICERGRADE 18

GRADE II OFFICER GRADE 17

GRADE III OFFICER(GRADE 16)


c. ORGANIZATION STRUCTURE OF NBP

The structure of National Bank of Pakistan is shown in the organizational chart. As

the chart shows the top governing body of National Bank of Pakistan is the board of

directors. The board of directors elects a president who then heads the executive

board of directors, which comprises of provincial chiefs and division heads etc.

BOARD OF DIRECTORS

The board of directors is the supreme governing body of National Bank of Pakistan.

It comprises of a government representative, Pakistan Banking Council Nominee,

Nominee of corporate sector and three directors from National Bank of Pakistan.

EXECUTIVE BOARD OF DIRECTORS

The Executive Board of Directors comprises of the four provincial chiefs, the three

directors from Board of Directors, and the division heads. These people run the

organization. They are answerable to the president and the president is answerable

to the Board of Directors.

STRUCTURE OF A PROVINCIAL HEAD OFFICE

A provincial head office is headed by a provincial chief. As the organizational chart

shows that under a provincial head office there are regional offices. In Punjab there

are about nine regional offices. Under each regional office there are two or three

zonal offices and under each office there are fifteen to twenty branches.

TYPES OF BRANCHES

There are a lot of different branches of National Bank of Pakistan. We explain them

one by one.

There are main branches in every city. In one city there is only one main

branch, it is directly under the zonal office.

Then there are commercial branches. These are the ordinary branches and

are in the commercial areas such as the Mall Road Branch.

The Industrial Branches are exclusively in industrial zones.

There are also Residential Branches. These are exclusively in residential

colonies.

Another type is the Mixed Branch such as civil secretariat branch. Every kind

of work is done.


There are also Project Branches created for specific purposes i-e the project

and are at the site.

Another unique type is the Model Branch. No other bank in Pakistan has

these. In these branches all the work is done by the officers. Even the officers

sit on the counters. Model Branches are in Karachi, Lahore and Islamabad.

There is one special type known as Drive in Branch. There is one in Karachi

known as Kahkashan branch. People go to the bank in the car, hand over the

check and get the money sitting in the car.

DIVISIONS OF NATIONAL BANK OF PAKISTAN

In order to perform all the functions, the National Bank of Pakistan has made some

divisions, which perform some specific functions. Following are the divisions:

CREDIT DIVISION

The main function of this division is to make the credit policies, and also to do credit

ceiling which means the maximum amount of credit that can be given to a certain

client. This division also looks for the agricultural and small loans. It also considers

the cases of right off i.e. bad debts.

CORPORATE CREDIT DIVISION

The major function of this division is to handle the big loans and industrial financing,

I.B.R.D. It also does the evaluation of credit ceiling policy devised by the credit

division.

INTERNATIONAL DIVISION

This division has to look after the administration of National Bank of Pakistan outside

Pakistan. It takes care of all the affairs about the advances given outside, the

management of the branches of the bank outside Pakistan, the posting of employees

outside Pakistan etc.

RECOVERY AND LITIGATION DIVISION

This division comes into operation when recovery of advances given becomes

difficult or impossible. It is the job of this division to decide whether to go court

against the client or not.

AUDIT AND INSPECTION DIVISION

The major function of this division is to carry out the inspection of rules and policies.

It also inspects the books of accounts, whether they are kept rightly or not.


ADMINISTRATION DIVISION

This division consists of two wings the personnel wing and establishment wing.

The personnel wing concerns with employee welfare and administration. It looks

after things like rules relating to the administration of employees, the medical bills

etc. There

is also a disciplinary cell, which is for punishments if an employee does something

wrong. The establishment wing has a main function of controlling the debt stock i.e.

furniture, transport facility, stationary, sports portfolio, security arrangements, and

staff welfare.

RESEARCH CORPORATE PLANNING AND HUMAN RESOURCE

DEVELOPMENT DIVISION

Their main job is to do human resource management. For this purpose there are

staff collages in Pakistan. There are four of them. They give training to employees

outside organization and also outside the country. In 1998 National Bank of Pakistan

staff collages have trained about 7992 employees out of which 321 were executives

5553 officers and 1878 other staff. Outside National Bank of Pakistan they trained

128 executives, 113 officers and 2 other staff. They have their own staff and also

engage faculty from Punjab University and LUMS.

ENGINEERING AND MAINTENANCE DIVISION

The job of this division is maintenance of buildings, construction of projects, project

designing. The head of this division is an engineer who has designation of executive

vice president.

FINANCE AND INVESTMENT DIVISION

It looks after the accounts, investment in resources and decides where to allocate

the surplus funds.

CUSTOMER SERVICES DIVISION

The main job of this division is to manage the opening and closing of branches,

Islamization policy, then there is a complaint cell where the customer makes the

complaints if they are not treated well. This division also accepts Hajj applications.

This division is very important as it directly concern the customers who are the ones

to make the deposits, which the bank invests.

BUSINESS PROMOTION AND MARKETING DIVISION

It concerns the marketing and selling of the policies and interest rates of National

Bank of Pakistan through advertisements on television or in the papers etc.


LAW DIVISION

This division consists of an executives committee and an evaluation committee.

Their job is documents evaluation and they give legal opinion to recovery and

litigation division also.

COMPUTER DIVISION

This division does data processing through computers and develops control

systems. All these divisions perform their functions through the branches and they

are located at the head office in Karachi.

TREASURY DIVISION

NBP boosts the banking sector’s largest treasury operation by virtue of being the

principal bank for handling the exchequer’s business. Facing the current competitive

interest rate environment, the bank has felt the need to enhance its asset yield

through the use of derivative products. The bank recently executed a Quanta Interest

Rate Swap aimed at providing cross currency interest rate hedge for one of its prime

clients. This is a watershed, being the first such transaction to have been

successfully launched in Pakistan and will serve as the foundation stone for the

promotion of derivative products.

INFORMATION TECHNOLOGY

NBP has undergone a paradigm shift by synchronizing the adoption of technology

with product development as they view it as a tool for optimizing customer

satisfaction. Round the clock payment of utility bills in important cities is now in place

and branches covering 85% of the bank’s business will be fully automated on a real

time basis. While the “One-Link” ATM switch sharing arrangement will serve to

enhance the 24 hour banking facility available to our customers, NBP is expanding

its owned ATM base as well.

NBP is also inviting local and international software solution providers for the supply,

implementation and maintenance of the Core Banking Application software for its

domestic and overseas branch banking operations. In addition to the Core Banking

Application it is essential to understand the role of NBP as a major collection agent

for the Government of Pakistan with over 34 different types of receipts and

disbursements done through 1189plus branches of the bank. On an average the

bank has approximately 1.5 million transactions per day for approximately ten million

customer accounts across Pakistan. The Project includes computerization of Trade


Finance, Retail, General Ledger / Finance, Investment Banking, Corporate Banking,

National Investment Trust System, Litigation Monitoring, Credit and Risk

Management System and Card Services.

COMPLIANCE DIVISION

NBP continually strive to adopt the best corporate governance practices to safeguard

the interests of our depositors, customers and shareholders. They have substantially

intensified the scope as well as frequency of our internal audit operation while

employees are encouraged and rewarded for compliance with the high ethical

standards that are been set.

BRANCHES NETWORK

USA Wall Street New York, UN Plaza New York Washington D.C.

and Chicago.

Egypt Cairo

Bahrain Manama

Bangladesh Dhaka

U.K. London Manchester, Glasgow, Bradford, Edinburgh, Sheffield,

Birmingham & Knightsbridge (London).

France Paris

China Beijing (Rep. Office)

Uzbekistan Tashkent

Saudi Arabia Bank Al-Jazeerah Branches.

Germany Frankfurt

Hong Kong Hong Kong & Kowloon

Japan Tokyo & Osaka

Korea Seoul


BRANCH NETWORK GROWTH OF NBP

Year Total Branches

1950 17

1951 29

1952 40

1953 52

1954 65

1955 67

1956 73

1957 85

1958 105

1959 129

1960 156

1961 194

1962 239

1963 330

1964 450

1965 519

1966 618

1991 1421

1995 1537

1997 1468

1998 1434

1999 1434

2000 1375

2001 1245

2002 – 2006 more than 1400


d. DEPARTMENTS OF NBP

General banking is one of the major departments of National Bank of Pakistan. It

consists of sections, which are following.

1. Account opening section.

2. Deposit section.

3. Clearing section.

4. Remittance section.

I. ACCOUNT OPENING SECTION

HOW TO OPEN AN ACCOUNT

There are certain formalities which are to be observed for opening of a current or

saving account with a Bank. These formalities in brief are as under

FORMAL APPLICATION

The customer is to filling "Account Opening Form 11 It is a formal request by a

customer to the bank to allow him to have and operate the current or saving account.

OBTAINING INTRODUCTION

The bank before opening, and account obtains introduction of the customer from old

customer, responsible person etc.

SPECIMEN SIGNATURE

When the Banker is satisfied about the integrity of the customer, he agrees to open

the account. The Banker obtains the specimen signatures of the customer on the

signature book or on card.

MINIMUM INITIAL DEPOSIT

In Pakistan the current account can be opened with a minimum of Rs. 500/- and PLS

Saving Account with a minimum of Rs 100/- These amounts are also the minimum

balances to be maintained by the account holders with the Bank.

OPERATING THE ACCOUNT

When an account is opened in a Bank, the Banker gives to the customer.

i. Pay in slip book.

ii. Cheque Book and pass book with a view to operate it.


PRECAUTIONS IN PREPARING THE PASS BOOK

The Banker should be careful in preparing the pass book However, the customer

himself should.

i. Send the pass book for making entries and also periodically check up them.

ii. He should also see that the entries are initialed by the accountant.

iii. The customer should verify the entries with own books of account.

iv. In order to safe guard the secrecy of the account; the customer should receive

the pass book in closed cover.

WITH-DRAWL

Withdrawal is made on cheques supplied by the Bank. A new cheque book is issued

only on receipts of the requisition slip attached to the cheque book issued previously

and this presented along with the depositor pass book for entire against cheque

book challan. Cheque book is issued on discretion of the branch manager.

INTEREST

The current rate of interest allowed on deposit in saving Bank account is ascertained

at the Bank. This rate is subject to change. The amount of interest is calculated for

each calendar month on the lowest balance at credit of an account between the

close of the sixth day of a month and the end of the month and only on every

complete sum of ten rupees.

Every account is made up half yearly to 30th June 31st December, and the interest

calculated as above is added to the balance of each account as on these dates.

TRANSFER OF AN ACCOUNT

Account can be transferred to any other branches of N.B.P. free of charge. If a

depositor wants to transfer his account, he presents his pass book personally or

sends it to Bank and writes an application for the transfer of an account.

CLOSING OF AN ACCOUNT

A depositor willing to do, his account must present his pass book in order that with

drawls and the amount of interest due on the account is entered therein and final

balance stuck. This balance is then paid to the depositor and his receipt is taken, the

pass book is canceled, unused cheque forms on hand are also surrendered at the

same time.

SECRECY


The secrecy of depositor’s account is the. Responsibility of every official engaged in

the Bank service.

MONEY DEPOSITED OR DRAWN BY POST

When money is sent by post for deposit, the pass book and a letter starting the

amount of the deposit and the number of the account accompany it.

When a depositor wishes to withdraw money by post he must forwards his pass

book with a letter starting the number of his account, the amount to be drawn and

either the money is to be remitted by money-order or in currency notes registered.

TYPES OF BANK ACCOUNT

Saving Account

Saving Account is that account in which customer puts his surplus money which he

saves from his daily expenditure.

The account can be operated by depositing a minimum cash of Rs. 5/-. Small

percentage of interest is allowed on the balance of this account.

Current Account:

The current account is that one which the customer draws his daily cheques and is

normally operated by the Business-men. It can be operated by minimum amount of

Rs. 500/- Any number of cheque amounting undue minimum balance limit can be

issued by the account holder for withdrawal or for payment. No interest is allowed on

this account.

Join Account

A joint account occurs when two or more than two customers have one account. The

parties to a joint account are considered in law as they are one person.

Profit and Loss Sharing Account

This can be operated by a person, firm or organization by depositing Rs. 100/- or

above. The holder of this account will get profit of his amount, or he will bear the loss

as the case may be. So an individual is equally participant in profit and loss.

The holder of account can withdraw up to Rs. 15,000/- per month is eight

withdrawals, in case of higher withdrawal, seven day prior notice is necessary. This

account is operated under interest free system.

Fixed Deposit Account


In this account an amount is deposited into the Bank for a fixed period of time. The

fixed period may be three months, six months, one year, two years, five years and

more. The Bank allows a higher rate of interest for larger period

At the time of operating on account the Bank issues deposit certificates for the period

and amount. The account holder can not withdraw his amount before the specified

period, but the same Bank will allow loan against that certificate. Bank is liable to

give interest on this account on maturity date.

II. DEPOSITS SECTION

There are two types of deposits i.e. current and saving. There are different forms

present in the section of or deposits.

1. Current account form.

ii Saving account form.

iii Private or individual form

iv Private firm account form

In the above mentioned forms, the bank makes an agreement with his customers.

III. CLEARING SECTION

Every Bank performs the paying and receiving functions. Cheques are collected

which are drawn up to Banks for customers. Similarly the cheques drawn on different

Banks and deposited by Banks own customers for collection within the city is know

as clearing The functions of receiving and paying is mostly done through the clearing

house. A clearing house can be defined as "AA place where that representatives of

all Bank get together to settle the receipts and payment of cheques drawn on each

other" Clearing House provides the facility which can hardly be dispensed with

especially, in case of crossed cheques.

There are two main types of clearing.

i Outward clearing

ii Inward clearing.

OUTWARD CLEARING:

It includes those cheques and other instruments which are sent by the Bank to the

Banks for payment on behalf of its own clients. Cheques are sent to clearing house

thorough local main branch.


A delivery message from the local main branch comes to every branch at a fixed

time to pick its outward clearing or outward returns as the case maybe.

Outward Clearing at Branch

a. Account number of payee/endorsee is written on the back side of the

cheques.

b. The instrument and the paying in slips are separated.

c. The instruments are sorted I Bank-wise and branch wise.

d. Schedules are prepared.

e. Jotting of all the schedules are taken in the clearing House statement. Amount

of the cheques in written in the "Delivered" and to pay column.

f. After balancing the outward clearing, the pay in slips are released to C.D.

department.

g. After balancing, a transfer debit voucher is prepared.

h. The instrument, schedule. etc. are delivered to the messenger from the main

branch

INWARD CLEARING

The cheques drawn are called inward clearing. drawn on National Bank through its

representatives on the Bank presented by other Banks for payment It includes those

cheques and other instruments of Pakistan branches which other Banks present at

the clearing house.

Inward Clearing At the Drawn Branch

a. Numbers of instruments noted in the schedules are verified immediately on

receipt.

b. The amount's of all the instruments are jotted down and totaled. If should be

equal to the amount mentioned in schedule from the local main branch.

c. The amounts are debarred to the relevant accounts if otherwise in order.

d. The IBCO is prepared crediting the amount of the main branch.

e. If there is any return, that is deducted from the total and IBCO prepared for

the remaining amount.


TYPES OF CHEQUES COLLECTED BY CLEARING SECTION

TRANSFER CHEQUES.

These are the cheques which are collected and paid by same branch of N.B.P. For

example Mr. Ali is a customer of N.B.P. of CITY branch and draws a cheque in favor

of Mr. Hussain who is also the customer of the same branch.

TRANSFER DELIVERY CHEQUES.

The cheques which are collected and paid by two different branches of a Bank

situated in the same city. For example a person draws a cheque on N.B.P. main

branch, Lahore in favor of another person who maintains an account with N.B.P.

model town branch, Lahore .

CLEARING CHEQUES

When the payee/endorse and the drawer of cheque maintains account with different

Banks, the collection Bank in any one of the following methods:-

It can collect cash by sending its representative with the cheques to each of

the paying Banks. It is not so much appropriate.

The Bank maintains an account with the paying Bank.

The cheques can be exchanged by representative of the various Banks who

meet at a fixed time and at a fixed place. This is the most efficient method of

collection and paying cheques.

FUNCTIONS OF CLEARING SECTION IN A BRANCH

a. To accept transfer, transfer delivery and clearing cheques from the customer

of the branch a~ d to arrange for their collection.

b. To arrange payment of cheques drawn on the branch and gives for collection

to any other branch of N.B.P. or any other member or such member of local

clearing house.

c. To collect amounts of cheques drawn on members of the local clearing house

sent for collection by N.B.P. branches not represented at the local clearing

house.

PROCEDURE FOR CLEARANCE OF CHEQUE

The customers are provided with the copes of pay4n-slip, whenever the customer

wants to deposit any cheque, he fills in the pay in slip himself and hands it over the

counter along with the instrument.


IV. REMITTANCE SECTION

Remittance means transfer of money from one place to another place. It is of two

kinds.

I. Inland remittance.

II. Home remittance.

INLAND REMITTANCE

An inland remittance means a transfer of money payable at a certain place within the

country. Inland remittances can be classified as under

A. Within locality.

B. Out side locality.

WITHIN LOCALITY

When a branch situated in Lahore is required to send drafts to any other branch

situated in the same city the process is know as within locality. For example N.B.P.

Main Branch, Lahore sends any draft to N.B.P. Moon market Lahore.

OUTSIDE LOCALITY

Outside locality is an important type of inland remittances, which means the transfer

of money payable outside the city. For example, N.B.P. Main Branch Lahore sends

any draft to a Branch situated at Lahore.

It is commonly done through the following three means:-

i. Telegraphic transfer (T.T)

ii Mail Transfer (M.T)

iii Demand Draft (D. D)

TELEGRAPHIC TRANSFER

In telegraphic transfer, the Bank takes commission and telegram charges from the

sender. A receipt is issued to the sender for the value received.

The Bank itself transfer the funds to the drawee branch though a coded message in

telegram, confirmatory of which is also sent through routine dak mentioning all

details. All bank Branches have been provided with their code books name Bank

Keys Code Book where from the coded message is agreed by the drawee branch.


T.T. can be sent open, which may be paid in cash in drawee branch, or may be

direct y creditable to relevant account.

MAIL TRANSFER (M.T.)

The Money can be remitted through this means also. In this case the payable

amount at the drawee branch can only be transferred to an account; amount can not

be paid in cash. Other procedure is same as T. deposit of money at sending branch.

Difference is only of postage and. telegram charges. The M.T. which in its self is an

advice also is sent by registered post, while T.T. is sent through telegram.

DEMAND DRAFT (D.D)

Demand draft is a written order by a branch of a specified Bank, drawn on another

branch of the same Bank to pay a certain sum of money only to or to the order of the

Payee. Demand drafts are purchased by the clients and after receipt of money Bank

issues and delivers the D.D. to the purchaser, who himself sends it to the payee. In

D.D. the Banks do not recover postal charges as it is payable by the purchaser. The

Bank, after deliver of D.D. to the purchaser also sends its own advice called IBCO

(Inter Branch Credit Order) to the drawee branch mentioning therein all details of

issued draft.


4. BUSINESS STRATEGY

a. SWOT ANALYSIS

STRENGTHS

National Bank the Nation’s Bank

State Bank of Pakistan is government owned bank that is why Pakistani nation has a

trust on the bank that their deposits are secured. Due to this reason the deposits of

the banks are increasing with the passage of time

Agent of State Bank of Pakistan

National Bank of Pakistan also works as an agent of State bank of Pakistan in those

cities where SBP branches are not working.

Agency Arrangements

National Bank of Pakistan is enjoying with deposit of different Govt. organization like

Pakistan Railways, PIA, WAPDA, Sui-gas due to agency arrangements.

Deposits

National bank of Pakistan is the largest commercial bank of the country and has

Total Deposits of Rs. 362.87 billion and becomes the first bank to cross the deposit

of Rs. 350 billion.

Profitability

The pre-tax profits of NBP have gone up to Rs. 6.05 billion.

Corporate Branches

National Bank of Pakistan is now the biggest financial institution with assets totaling

over Rs.310 billion with 1428 local and 23 foreign branches. The bank is the

higher financer in agriculture and commodity operation sector.

Collection of Cash from Shrines

Cash collected from different shrines is also deposited in National Bank of Pakistan.

Comprehensive Range of Financial Products

In order to facilitate the customers, NBP is offering the comprehensive range of

financial products which are as follows:

Credit Cards

Foreign Exchange Bearer Certificates

National Bank Daily Accounts

Travelers Cheques etc.


Investing in Capital Market

NBP has decided to diversify the fund base by investing in capital markets not only in

Pakistan but also in the foreign countries.

WEAKNESSES

Lack of Implementation of Rules and Regulations

Because NBP is a govt. owned organization so there is a lack of implementation of

rules and regulations.

Poor Working Conditions

Despite, cultural change program the working condition of the NBP is not up to

standard.

Recruitment Policy

In NBP, employees are recruited on the basis of favoritism or through other tools of

corruption.

Incompetent Staff

Due to wrong recruitment policy staff of NBP is not proficient in their work.

Irregularities in Promotion

In NBP there is no smooth and continuous promotion system. Unfair means are used

in order to get the promotion especially the promotion of the managers.

Individual Difference

In NBP the individual difference have strong impact on the organization’s

performance due to the wrong criteria of selection of the employee. So with the

passage of time individual differences are increasing which are undermining the

good will of the organization.

No Major Use of Computer

In NBP there is no major use of computer for maintaining the records of branches as

compared to other banks of the country.

Strong Union

Union has strong impact on performance of NBP. So the top management is unable

to punish the violators and shrieks.


Organizational Structure

In this organizational the organizational structure is bureaucratic which a barrier in

rapid and effective decision making is.

OPPRTUNITIES

Consumer Banking

The basis need of the consumer such as housing, transportation and other durable

goods are not adequately financed by the banks. So by initiating these services, the

bank can enjoy with more funds.

Investing in the Foreign Capital Market

NBP can enjoy handsome return its funding base by investing in capital markets in

the foreign countries.

Investment Banking

Until recently the bank perceived as purely commercial banking entity so in order to

expand its business the bank may start investment banking by investing in the

portfolio of handsome return.

New Branches

NBP by establishing new branches in foreign countries can expand its business and

can enjoy with the profit.

Issuance of Bonds

To enjoy with large amount, NBP can introduce a comprehensive range of bonds.

Night Banking

Despite of poor customer service of NBP, people still come to NBP because of its

Govt. ownership as they feel it secure therefore bank improve its deposit by giving

facility of night banking and also can compete its competitors with positive steps.

Advisory Services

It can establish advisory services in order to facilitate the customers in investing in

the securities.

THREATS

Competition


The no. of banks in Pakistan is increasing with the passage of time. So due to poor

working condition and poor customer service it may be possible NBP will lose its

market share in future.

Inflation

In our country, the rate of inflation is increasing along with the unemployment. So

due to the increase in price of the products, the savings of the nation is decreasing

with the passage of time. So it is the threat for the banking sector. In the future, the

deposits of the bank will decrease.

Government Policy

On NBP Govt. policies have strong impact. A slight change in Govt. policies may

affect the performance of the bank. The bank has to work with in the regulation

frame work.

b. COMPETITIVE STRATEGY

Banking industry in Pakistan is progressing in leaps and bounds and with this drastic

increase in number is raising the bar of competition amongst the banking sector.

Last year the better half of the foreign direct investment was in the banking sector.

To stay in this incredible amount of pressure of competition and delivering the goods

on the deadlines to obtain customer satisfaction and loyalty is the need of the hour

and National bank has always proved itself in distant times by providing the cheapest

interest rates on loans given to the corporate world, employees of government

institutions in terms of Advance Salaries and to farmers made the bank to stand tall

in the competition and contributed a lot to the competitive strategy of the bank. They

are mainly using the Market Penetration Strategy to attract customers.

c. BUSINESS PROCESS ANALYSIS

After working in that environment of National Bank of Pakistan I found following

points in analyzing Business Process of the Organization.

Well-defined tasks and duties


The tasks and duties are defined in such a way that it becomes very easier for the

employees to perform their assigned tasks. Due to the implementation of modern

techniques the efficiency and accuracy of the work force has been greatly increased.

Proper supervision

There is a proper supervision system to check and evaluate the performance of each

employee. It is the duty of Operations Manager to make sure that every employee is

giving the desired performance.

Caring environment for the customer

The environment of the bank is caring for the customers and every customer is dealt

with proper care and attention. All the employees have very professional attitude and

know the worth of the customer for the business.

Cooperative and Supportive Staff

The behavior of the staff with the customers is very cooperative and supportive and

every employee is ready to facilitate the customer on his best in order to increase the

customers’ satisfaction level.

Lack of customer relationship desk

It was observed that there was no customer relationship officer in the branch to

guide the customer to solve their problems and to tell them that what should they do

and where should they go for the solution of their problems. As a result the

customers keep on disturbing all the employees in order to get their problem solved.

This results in the decrease in the employees’ concentration on their jobs.

Difficulty in Handling of illiterate customers

As the branch is located in such an area where main business is of spare parts and

steel manufacturing, the majority of the customers is illiterate. Thus it is not very

easy for the Employees to handle these customers.

Increased workload

Due to the new regulations of the state bank to deduct 0.1 % tax on every check

amounting to more than Rs. 25000, the customers started issuing too many checks

to avoid this tax. As a result the overall work load on employees has been

significantly increased.

Employee’s motivation level

It was observed that at present the motivation level of the employees is not very

much high because of the currently announced salary increments, which is not up to


the employees’ expectation level and because of some other reasons such as,

increased workload etc.

5. MARKETING STRATEGIES

National Bank strongly believes in “winning the customer by winning his heart”

through complete satisfaction of his/her needs. National bank’s marketing strategies

are more towards making their existing customers loyal because they believe that it

is their customers who provide them with new customers. The Bank uses KYC

(Know your customer forms) to have complete association with their new customers.

a. DEPOSITS

Target Market

Personal Bankers target markets include businessmen, salaried individuals,

housewives, retired individuals and anyone who has the potential of providing legal

deposits to the bank.

Promotional Strategies

Promotional marketing has various types; from what I can recall there is direct

marketing and indirect marketing. Direct marketing is a discipline within marketing

that involves the planned recording, analysis and tracking of individual customers’

response and transactions for the purpose of developing and prolonging mutually

profitable customer relationship.

Direct marketing is a form of marketing that attempts to send its messages directly to

consumers using “addressable” media, such as mail and (increasingly email),

telephone and personal meeting with customers. Therefore, direct marketing differs

from regular advertising in that it does not place its messages in a third party

medium, or in the public market, such as billboard to a radio commercial would.

Instead, the marketing of the service or commodity is addressed directly to the target

customer

On the other hand indirect marketing includes such types of advertising tools like

billboards, TV commercials where no immediate response can be seen neither can

be measured. No matter what the promotional strategy, as Mr. Kashif, Team

Manager of Credit Cards Department in Consumer Banking said


“A successful product or service means nothing unless the benefit of

such a service can be communicated clearly to the target market”

National Banks promotional strategies consist of

Public Relations

National Bank strongly aims to develop positive relationship with public. The bank

has promoted healthy sports activities as NBP has built a state of art sports complex

at Karachi.

Direct Mail

There has been a massive growth in direct mail campaigns over the last few years.

National Bank has complete databases, which contain names and addresses of

potential customers. Direct mail allows NBP to use their resources more effectively

by allowing them to send publicity material to a named person within their target

segment. By personalizing advertising, response rates increase thus increasing the

chance of improving business.

Internet Promotion

Owning a website is a now a crucial ingredient to the marketing mix strategy of any

organization. National Bank’s customers can now obtain instant information on

products or services to aid them in their crucial decision. Further NBP also facilitates

its customers through I-Banking. Customer can register on the web site and can

enjoy a host of services.

Personal Selling (Push Strategy)

The foremost Promotional Strategy of NBP is Personal Selling i.e. Selling a products

one to one.

Direct Marketing

Personal Bankers at NBP, whose primary job is to bring more and more deposits to

the bank, make use of Direct Marketing techniques. First of all these PBs identify

their sources from the reference groups and track down their likely to be customers.

According to a PB Mr. Rab Nawaz at NBP,

“It is all a matter of keeping your eyes and ears open.

While meeting with a potential customer, it is most


likely that you can get a new reference for a new

customer”

Once they get a reference from their existing customer or relative or colleague, they

try to get as much information as possible about their potential customer. Then they

give a call to the customer and try to convince him/her over the phone. Customers

with greater potential are asked for appointments for a face-to-face meeting.

Customers who provide the bank with heavy deposits are given special treatment. It

is common for the Branch Manager to give formal meals in restaurants to such

customers.

Product Strategies

Augmented Product

With every new account opened, National Bank provides a free cheque book and a

free debit/shopping card. Other than that, if a customer maintains an average

balance of one hundred thousand he/she has the facility of making two DDs free of

any charge.

Augmented Personalized Services

Personal bankers are dedicated to provide with the best possible attention, advice

and services to their customers aside from regular.

b. CASH CARD

Push Promotional Strategy

NBP makes use of push promotional strategy to promote the cash cards business.

Through this promotional strategy, Bank makes use of its sales force and trade

promotion activities to create consumer demand for cash cards.

Positioning

The Cash Card meets the everyday usage needs of financially responsible

consumers who desire the flexibility offered by the cash cards. It provides the high

level of quality customer service.

Target Market

The Cash Cards are targeted towards customers who are financially responsible,

middle and upper income consumers who seek greater financial flexibility, a mix of

local and global services and support and demand a high level of quality and service

Approved Cities


Karachi

Lahore

Islamabad

Others (All Cities where NBP Branches exist along with Collection and

Verification infrastructure)

6. OPERATIONS

National Bank of Pakistan is committed and focused towards good quality customer

service and in 2007 with the motto of ‘Putting as smile on our Customers face’; we

made concerted efforts and took a number of initiatives. Workshops and seminars

were conducted to disseminate the very important message of “excellent customer

service”. National Bank is transforming branches to give a modern look and

convenience. A number of branches have been shifted to prominent and spacious

locations. It also has established specialized customer facilitation centers to

exclusively cater to pension payments, utility and government collections. These are

expected to reduce counter traffic at our branches and will increase our distribution

channels for better and convenient services. Business hours have been extended

with establishment of customer facilitation offices at the regional levels to help on the

spot resolution of customer complaints.


7. FINANCIAL ANALYSIS

Financial analysis involves the assessment of firms past, present and anticipated

future financial condition. The objective of this analysis is to identify any weakness in

the firm financial health that could lead to future problems and to determine any

strength that the firm might capitalized upon.

Financial analysis is used in the evaluation of the financial condition and profitability

of a company. The ratios are calculated from the financial information provided in the

balance sheet and income statements. Every firm has two basic financial objectives:

To be financially sound

To earn an adequate rate of return on invested capital

Basically following analysis can be done:

Horizontal Analysis

Vertical Analysis

Ratio Analysis

All the three- mentioned analysis is performed on the profit & loss account and

balance sheet of National Bank of Pak

a. RATIOS ANALYSIS

Liquidity Ratio

The liquidity of a firm is measured by its ability to satisfy its short-term obligation as

they come due. Liquidity refers to the solvency of the firms over all financial position.

Because a common precursor to financial distress and bank ruptey is low and

declining liquidity. These ratios are viewed as good leading indicators of cash flow

problems. The two basic measures of liquidity are the current ratio and the working

capital ratio.

Current Ratio

Current ratio is a measure of liquidity calculated by dividing the firms current assets

by its current liability. It is expressed as follow:


Current ratio = Current assets

Current liabilities

2007 = 30994.97 = 1.00

30869.15

2006 = 27113.70 = 1.02

26596.30

Interpretation

This shows a good sign that bank has 1.00 assets for their current liabilities but it

was slightly decreasing from the previous year which is not showing a good trend.

Working Capital

It can be measured by subtracting the current liabilities from current assets.

Working capital = current assets – current liability

2007 = 30994.97 - 30869.15

= 125.82 million

2006 = 27113.70 - 26596.30

= 517.4 million

Interpretation

Working capital increased which shows that there is an increase in current assets,

which is good indication. But as we see that the WIC has decreased from the

previous year this is because there is an increase in CL more then in CA.

Advances to Total Deposits Ratio :( An important ratio for a bank…)

It can be calculated by dividing the firm advances by its total deposits.

Advances to total deposits = advances

Total deposits

2007 = 340677.10

591907

= 0.58

2006 = 316110.41

501872


= 0.63

Interpretation

As deposits show an increase, the advances also increased. Bank has provided the

advances and loans to more customers as compared to this year. This shows an

increase in area of deposits of bank as compare to the advances.

Activity ratio

Activity ratio measures the speed with which various accounts are converted into

sales or cash, inflows or outflows.

Total Asset turnover

The total asset turnover indicates the efficiency with which the firm uses its assets to

generate sales. Total asset turnover is calculated as follows:

Total asset turnover = total income

Total assets

2007 =64114.33

762193.59

= 0.084

2006 = 55951.52

635132.71

= 0.08

Interpretation

The ratio indicates the efficiency with the company uses its assets to generate sales.

This means the bank has turn over its assets 0.084 times a year which is less as

compare to the last year which means that the company has not managed its assets

efficiently as compared to the last year.

Profitability Ratio


There are many measures to profit ability. These measures enable the analyst to

evaluate the firm’s profit with respect to given level of assets or the owner

investment. Without profit, a firm could not attract outside capital. Owner, creditors,

and management pay close attention to boosting profits because of the great

importance placed on earning in the market place

Return on Total Assets

It is often called the return on investment, it measure the overall effectiveness of

management in generating profit with its available assets. The higher the firms return

on total assets, the better.

Return on total assets = net profit x100

Total assets

2007 = 19033.77 x100

762193.59

= 2.5

2006 = 17022.35 x100

635132.71

= 2.68

Interpretation

The return on assts is quite good that the investor is getting 2.5 for its investment

but when we compare it with the previous year it is not showing a good sign to the

investor as it is decreased from the previous year.

Return on Equity

It measures the return on the common stock holder’s investment in the firm.

Generally, the higher this return, the better of is the owners.

Return on equity = Net profit x 100

Total equity

2007 = 19033.77 x100

101190.46


= 18.81%

2006 = 17022.35 x 100

76586.02

= 22.22%

Interpretation

The above given ratios suggest that the profitability of the bank has decreased very

sharply in the year 2007indicating less profitable operations of the bank.

Earning per Share

EPS is generally of interest to present or prospective stockholder and management.

EPS represents the no of dollars amount earn on behave of each share not the

amount of earning actually distributed to share holder.

Earning per share = Net profit

No Of shares

2007 = 23.34

2006 = 20.88

Interpretation

Earning per share has also increased. This increase will affect the price of share

positively. It also shows that bank is achieving the goal of maximum benefit to its

shareholders. Profit has increased more rapidly.

Return on Deposits

It is calculated by dividing the net profit by its total deposits.

Return on deposits = Net profit x100

Total deposits

2007 = 19033.77 x100


591907.44

= 32.15%

2006 = 17022.35 x100

501872.24

= 3.39%

Interpretation

As return on deposits is increasing it is favorable trend. This shows that the profit

margin on deposits is increasing with increase in deposits the profit also increase but

with greater proportion.

Margin of Profit

It is calculated by dividing the net profit by total income.

Margin of profit = Net profit x 100

Total Income

2007 = = 19033.77 x 100

64114.33

= 29.69%

2006 = 17022.35 x 100

55951.52

= 30.42%

Interpretation

Profit is increasing with increase in total revenue, which shows that the profitability of

bank is increasing, which is good sign. Share of profit in total revenue is increasing,

showing the favorable trend.

Solvency Ratio

The magnification of risk and return introduce through the use of fixed cost financing,

such as debt and preferred stock. In general, the more debt a firm uses and relation

to its total assets, the greater its financial leverage.


Debt Ratio

The debt ratio measures the proportion of total assets financed by the firm’s

creditors. The higher this ratio, the greater the amount of other people’s money being

used to generate profit. The ratio is calculated as follow:

Debt ratio = Total Liability

Total assets

2007 = 645855.94

762193.59

= 0.85

2006 = 553178.59

635132.71

= 0.87

Interpretation

The decrease debt ratio shows the increased share of debt in total assets as

compared to owner’s equity. More the share of the debt more will be the risky

financial position. But here it is normal trend.

Time Interest Earned ratio

It is some time called the interest-covering ratio, measures the firm ability to make

contractual interest payments. The higher its value, the better able the firm is to fulfill

its interest obligation. It can be calculated as follow:

Time interest earned ratio = Earning before interest and taxes

Interest Expense

2005 = 424515.80

143910.79

= 2.95

2006 = 399450.62

136344.85

= 2.93

Interpretation


It shows whether the bank is earning enough profit before mark up charges to be

paid to the financiers and the taxation obligations due to the government in order to

remain solvent.

The above figure shows the more capacity on the part of the bank to cover its

interest payments. It has increased as compared with the last year. This is showing a

good sign for the bank that it is providing more to the investors. In view of the long

run financial perspective, this ratio is good for the bank.

Performance Ratio

Share Holder Equity to Total Liability

It can be calculated by dividing the shareholder equity by its total liabilities.

Share holder equity to total liability = share holder equity

Total liabilities

2007 = 69271.0

645855.94

= 0.107

2006 = 53045

553178.59

= 0.096

Interpretation

Stockholder’s equity to total liabilities increased a little bit. This also shows the

stockholders share in financing the business

b. INTERPRETATION OF BALANCE SHEET

First of all we will discuss balance sheet. The balance sheet has shown that Cash

and balances with treasury banks have increased to 12.44% from 12.38% of total

assets. The Balances with other banks has decreased to 4.91% from 6.4% which

also show a good sign that they have received their cash back from other banks

effectively. Lending to financial institutions also decreases to 2.81% from 3.62% of


total assets. The investments are increased in this year to 27.65% from 22.03% of

the total assets, which shows the bank is investing more and more. The advances

are decreased to 44.69% from 49.77%.operating fixed assets were also

increased .other assets are also decreased as compared to last year ratio from total

assets. Now the liabilities and equity section will be discussed. The bills payable will

be decreased to .93% from 1.67% of total liabilities and equity, which shows a good

sign. The borrowings will be decreased as compared with the previous year it falls

down from 1.84% to 1.43%, which is not a big difference but a good sign. Deposits

and other accounts will be decreased to 77.65% from 79.02%, which is not a good

sign that people are not depositing their money in the banks. Liabilities against

assets subject to finance lease are increased from .38% to .67% but other liabilities

decreased as compared to previous year. Other liabilities this year are 4.05% and

previous year are 4.19%.the total liabilities are decreased as compared to previous

year, which is a good sign for bank. Total liabilities this year are 84.73% and

previous years are 87.09% of total liabilities and equity. The net assets are increased

from 12.90% to 15.26% which show that liabilities this year are decreased. The

share capital is slightly down from the previous year with the difference of .47% but

the reserves are decreased and it will fall down from 2.185% to

2.069%.inappropriate profit is also increased from 5.05% to 5.95%.surplus on

revaluation of assets is slightly increased from 4.55% to 6.175%.

c. INTERPRETATION OF INCOME STATEMENT

In this we will take revenue as 100 and then we can calculate all the statement with

reference to revenue. Markup / return / interest earned is increased from 110.40% to

119.12%.Markup / return / interest expensed is increased, it rose up from 34.91% to

39.90%.so the net markup / interest income also increased from 75.48% to

79.21%.provisions against non-performing loans and advances increased from

7.69% to 11.13%.the main difference is due to provisions against non-performing

loans and advances which are higher as compared to last year. Bad debts written off

directly are increased from .01% to .09%.but the net mark up / interest income after

provisions are decreased due to increased in provisions. Fee, commission and

brokerage income increased as compare to last year. This year it is 15.98% which is

slightly more as compared to 15.38%.the dividend income is increased from 7.24%


to 7.69%.income from dealing in foreign currencies also decreased from 3.34% to

2.46%.gain on sale and redemption of securities is increased from 2.93% to

5.51%.unrealized loss on revaluation of investments classified as held for trading is

decreased from -0.01% to -0.07%.other income also decreases from 34.13% to

33.89%.the administrative expense are also decreased from 33.65% to

33.46%.other provisions are increased from -0.04% to 0.39%.charges are decreased

from .52% to .04%.the total non markup / interest expenses is slightly lower than the

previous one. It is 33.89% as compared to last year 34.13%.profit before taxation is

slightly greater than last year from 65.86% to 66.10%.the taxation is lower as

compared to last year of 23.25% to 21.26%.so after deducting tax the profit after tax

is 44.83% from previous year 42.61%.now unappropriated profit brought forward is

greater as compared to last year which is 75.55% and of previous year is

48.48%.basic earning per share is increased from 20.88% to 23.34%

d. FINANCIAL REVIEW

NBP continued its journey of success based on our strategy of serving clients better

a company agile enough to take advantage of its unique domestic and international

footprint, capitalizing on the largest balance sheet and customer base in Pakistan

with high cross sell potential. Our standalone AAA rating(the highest in the industry),

our RoE , which is amongst the highest in the Asian banking industry, and our

comfortable capital adequacy ratios, position us well in front of our competitors for

future growth. Year 2007 has been an outstanding year with the bank recording the

highest profit in its history. Our wide range of product offering, large branch network

and committed workforce are some of our fundamental strengths that enabled us to

achieve exceptional results in a very competitive market. The pre-tax profit increased

to Rs. 28.06 billion, an increase of 6.6% over last year. Earning per share jumped by

over 11.7% from Rs.20.88 in 2006 to Rs. 23.34 in 2007. Pre- tax return on equity

stood at

45.9%, whereas pre-tax return on assets stands at 4.1% and cost to income ratio of

0.30 remained one of the highest in the sector. These results were possible despite

the fact that NBP had to make additional provision of over Rs.3 billion as a result of

withdrawal of Forced Sales Value (FSV).This year NBP also availed the offer to

redeem up to 10% of its holding in NIT Units held by the bank under Letter of


Comfort (LoC) arrangement, this sell off resulted in a Capital gain of Rs. 1.8

billion.Increase in pre-tax profit was achieved through strong growth in core banking

income. Net Interest income increased by Rs. 3.5 billion (11.5%) due to better yields

and volume driven growth spurred by increase in consumer loan portfolio. Dividend

income and Capital Gains also made a healthy contribution as it increased by Rs.

371 million and Rs. 1,145 million over 2006 respectively mainly owing to higher

dividends from NIT Units as well as Capital gains recorded on sell of 10% NIT Units.

Advances increased by Rs. 25 billion due to impressive contribution by all business

units. Deposits increased by a healthy Rs. 90 billion or 18% over last year. The

banks NPL provision coverage ratio also stands at an impressive 84%.

CORPORATE BANKING

The Corporate Banking Group achieved excellent results in 2007 with a number of

land mark transactions in cement, energy, communication and fertilizer sectors. In

addition to the funded income our corporate and investment banking has

substantially increased its fee base income this year by being the lead advisor in a

number of transactions in the Corporate world of Pakistan. The challenges to

corporate business in year 2007 were manifold, including reduction in private credit

investment as a result of slowing down of economy as well as rising interest rates.

The increasing pressure on the textile industry reduced the lending to this sector. In

addition the bank’s corporate loans yields also faced pressure as substitute form of

funding sources are available in the market in form of Islamic financing, mutual

funds, issuance of debt instruments like TFCs and Bonds and the Capital markets.

Despite these threats and challenges at NBP our corporate team not only increased

the volume as well as the yield of the loans they also maintained a strong franchise

with the leading Pakistani corporate so as to ensure that NBP not only maintains its

market share but is in a position to meet any challenges in future. NBP during the

year also participated in a number of TFC issues and mutual funds subscriptions

thereby increasing the overall yield on investment portfolio. NBP has the largest

equity portfolio in the banking sector primarily due to 27% holding in NIT units, the

largest mutual fund in Pakistan. During the year the bank redeemed 10% of its NIT

holding covered under LoC , which resulted in capital gain of Rs. 1.8 billion.

RETAIL BANKING

NBP Karobar’ under the “President’s Rozgar Scheme” recorded excellent growth

after its full launch in April 2007. This is a unique product launched to tap into the un-


banked and actually the so far unbankable poor people of Pakistan and targeted

towards the unemployed youths aged between 18 to 45 years. This product not only

serves the bank’s commercial strategy but is also an effort toward poverty alleviation

in the country. It is a unique Public – Private partnership where debt servicing is

shared by the government, as well as providing free life and disability insurance. The

portfolio at year end was over Rs.2 billion. The target is almost 1.8 million customers

in the next five years. There are exciting new incomes generating products in the

pipelines to achieve the targets of NBP. The income generation targeted is in excess

of ten thousand rupees net per month for each customer. The bank plans on

disbursing almost Rs 100 billion which will touch the lives of almost thirty million

citizens The flagship NBP ‘Advance Salary’ product continued to grow in 2007 and

maintained its position as the single largest product in the country with its

accumulated disbursement crossing Rs.115 billion. The number of organizations

whose employees are entitled to avail this scheme is gradually being increased

ensuring continued growth. The latest addition is the Pakistan Army and the target is

almost half a million new customers in the next three years in addition to the existing

base of one million satisfied customers approximately. Our retail banking is

expanding its reach to its diversified customer base by offering new

Services and products through new delivery channels so as to minimize counter

traffic, increase product offering and reduce administrative costs. NBP Saibaan is a

home equity loan product that was introduced in August 2003. Loans are available to

Pakistani residents to finance the purchase, construction or renovation of a home, as

well as for the purchase of land and the subsequent construction of a home thereon.

We are the only bank in Pakistan to offer home equity loans throughout the country.

NBP Saibaan has witnessed growth of 77% in 2007, one of the highest in the sector.

The development of alternate delivery channels, use of I.T., and leveraging large

customer base for cross selling potential are the key strategies of NBP for increasing

its retail business. NBP holds 16% market share in the consumer loan business and

we aim to increase it gradually without compromising on the quality of portfolio. Our

call center is a value addition in the customer services and provides overall support

to our retail products. It is a unique technology as it is not service provider specific

and free calls can be made to the NBP ‘Help Line” on 0800 800 80 from any land or

cell phone in the country

SME


Small and Medium Enterprises (SMEs) remain the main area of focus for NBP and

are considered the future growth driver. The growth of SME is important as they

generate higher yields and are expected to be a high growth sector in the near- term.

The services available to SMEs are similar to those provided to our Corporate /

Commercial customers, including, but not limited to working capital finance, term

lending, trade finance, letter of credits and guarantees. Our growth strategy for

SMEs revolves around developing a better understanding of the SME market,

increasing market penetration through our existing products and newly tailored ones,

and increasing our capacity to provide SME-specific services to our clients. The bank

is engaged with Shore Bank International (SBI) in a technology as well as Technical

Assistance agreement. The objective of which is to establish more effective SME

lending at a select number of NBP

Branches. These techniques (including cash-flow based assessment) are

institutionalized through an extensive staff training process. The pilot phase of the

project (confined to selected Regions of Punjab) culminated in December 2007 and

overachieved most of the pre-defined targets. More than PKR 1.6 billion in loans has

been disbursed to over 811 undocumented businesses while maintaining an NPL

rate

of less than 2%. After the success of the pilot project, NBP has decided to engage

the services of SBI to roll out the Technical Assistance on a national scale, covering

200 branches in Sindh, Punjab and Balochistan in the next two years.

COMMERCIAL BANKING

We plan to establish commercial centers across the country looking at the business

potential in the area, size of the branch and its capabilities to deliver the desired

service in order to attract quality customers. The objective is to target the untapped

sectors and provide them professional quality service, through one window

operations and Relationship Managers stationed at those centers. We expect and

hope to reduce

the turnaround time and become more competitive and market oriented. Further this

customer friendly and dedicated set up at convenient locations would help in

improving the image of the Bank as well. These Centers would work in conjunction

with the existing set–up of Commercial Lending done throughout the NBP branch

network. The main purpose of these centers is to generate ancillary business in


addition to funded and non funded facilities, with quick turnaround time in decisions

for customer satisfaction.

AGRICULTURE

NBP remains the largest agriculture lender in the banking sector in Agriculture with

approximately 300,000 borrowers and gross disbursement of Rs. 32 Billion during

the financial Year 2006-2007. Our vast domestic branch network having 45%

branches in rural areas and unique Product offering under the banner of “Kissan

Dost” provides us competitive edge over our peer banks. Our specialized Agriculture,

Filed Officers, being Agriculture graduates are trained to understand the needs and

limitations of our borrowing farmers as well as versed with the latest trends in

Agriculture production technology providing technical guidance and specialized

services to our customers.

DEPOSITS

NBP is the largest bank in terms of deposit. Our large clientele and confidence of our

depositors belonging to all walks of life is a major strength. We have shown

appreciable growth of 18% in deposits on YoY basis which is significant from the

view point that with the consolidation in the banking sector competition for deposits is

ever increasing. We are branding our liability products and will continue to develop

new liability side products for continuing our leadership position in this business. This

year we introduced three new liability products; NBP Premium Saver account, NBP

Premium Mahana Amdani account and NBP Enhanced Saver account. These

schemes have received excellent response from the customers and we expect

healthy growth in future under these and new products that the bank is going to

launch on the liability side. Given the large base and competition in the banking

sector, the bank’s performance is commendable in increasing its deposits by Rs. 90

billion especially low cost deposits.


8. HUMAN RESOURCE MANAGEMENT

a. HRM practices at National Bank of Pakistan

As we know that among all the resources of any organization, human resource is the

most valuable asset. The factors shaping human resource development in science

and technical fields are essential for formulating effective strategic plans at the

national, regional, and global levels. Employees are the most valuable resources of

an organization in the service sector (software, banking, management consultancy,

etc.). Like all other resources of a company, the human resources are more valuable

because of their value addition with the passage of time.

In the Bank, there is a separate department for Human Resource Development

(HRD).

Human Resource Policies:

Human Resource policy is to ensure implementation of clearly defined performance

management system, effective career development process, comprehensive

succession plans and alignment of meritocracy in order to maintain the same

standards of banking services

National Bank supports the rights of the individual as expressed in the 1948 United

Nations Universal Declaration of Human Rights (UDHR). The UDHR contains a

number of fundamental rights, which it aims to uphold in all circumstances, including:

The right to life

The right to legal recognition as a person Freedom of thought, conscience

and religion

Freedom of opinion and expression

Freedom from torture

Freedom from cruel, inhumane or degrading treatment

Freedom from slavery and servitude

Freedom from retroactive penal legislation

National Bank meets all relevant international legal obligations and all relevant local

legal obligations in the countries in which it operates.


b. Functions HR Department:

As this department is managing the most important asset of the company so its

functions are also important. So this department meets up on monthly basis and

performs the following functions:

Ensures proper grading and analysis of job recruitment for the purpose of

operational efficiency.

Develops an effective training program should suit the Bank’s requirement.

Keeping in view the future requirements oversees career path

development for all staff members.

Formulates a reasonable transfer/posting policy, which adequately suits

the bank.

Introduces effective mechanism for evaluating staff performance.

Prepares promotion/incentive criteria based on performance thereby

providing motivation to the staff working in the bank.

Accords Staff House Building Loans.

HR PRACTICES

JOB ANALYSIS

It is the primary function in HR, which you undertake. It is the analysis of the tasks

activities involved, time taken to perform the tasks, importance of the tasks,

responsibility associated with the task, conditions under which it is performed,

expertise required, equipments to be used, etc.

This would help the HRM, to determine:

a) Job Description

b) Job Specification

Recruitment

Selection

Developing compensation package

Training & development


Skills development programs

So Job Analysis is a fundamental for an effective HRM Programs.

c. RECRUITMENT & SELECTION PROCESS

The Bank has been recruiting the best in class individuals from the industry. As part

of our strategy to mix youth with experience, we have started inducting Management

Trainee Officers (MTOs) from leading business schools from across the country. The

process of recruitment in National Bank of Pakistan consists of following steps:

1. Advertisement (Electronic and Print media)

2. Inspection of application

3. Short listing

4. Issuance of call letter

5. Test

6. Listing on the basis of test

7. Call letters for interviews

8. Interviews-Panel Interviews

9. Final short listing

10.Offer letter

11.Joining

12.Training

13.Posting

d. TRAINING & DEVELOPMENT

It provides a vehicle to keep abreast its work force with latest techniques in all

operational areas and knowledge developments with a view to enabling them to

remain progressive and capable of taking of changing environment and trends. It is

based upon planning for providing training in emerging market trends by judging the

skills and knowledge deficiency areas from performance evaluations and need

analysis. It focuses on preparing individuals for present as well as for future

responsibilities.


Human Resource Development Areas:

Management skills

Marketing & Sales skills

Customer care skills

Performance appraisal skills

Banking operations & regulatory compliance

Credit marketing and credit proposals

Credit administration/documentation

Trade finance operations

Risk management

Audit compliance

e. COMPENSATION & BENEFITS

The Bank’s compensation & benefits philosophy is to pay employees in a manner.

The compensation & Benefits policy establishes, maintains, and administers a

compensation plan for employees of the Bank. It includes the following:

Pension Scheme

Post retirement medical benefits

Benevolent Scheme

Gratuity Scheme

Employee compensated absences

The compensation and benefits plan aims to achieve, as a minimum, the following

goals:

To attract qualified employees

To retain qualified employees

To motivate employees by rewarding sustained performance

To support management in the realization of Bank’s objective

Annual Pay increases are based on performance evaluation of the year, comparison

of each employee and the resources available for granting the increase in

accordance with the contribution of each employee to the organization’s goals.


9. CONCLUSION

If I have to express my experience of internship in National Bank Main Branch

Lahore I would briefly say:

National Bank is a good Organization in the way that anybody can join it for his/ her

long-term career. Overall working environment is comfortable. Management of

branch cares a lot of its employees and considers them as the Asset of bank.

Behavior of senior executive of bank is very polite and they are caring about the

individual’s career and their growth.

However management is very demanding about the targets but good reward at the

achievement of assigned targets is awarded.

Employees at Bank are quite efficient. As the branch is renovated and new

employees are hired, its employees have to bring their bank among the list of good

banks. Therefore, they work more than their working hours and it is all according to

their will. It also shows their loyalty, commitment to organization.

Employees are given the benefits like bonus, gratuity funds, loans, increments, and

medical.

All the customers are entertained individually. Same kind of behavior and attention is

given to all the customers. Getting ideas for improvement from customer side is a

new idea and that is working very well in National Bank. All the customers are asked

to fill a suggestion form and the standards of the bank are improved through them.

Prioritizing its product portfolio in line with its corporate and consumer needs and

wants the bank is committed to develop products that give more value to its

customers in both the sectors.

In bank, the work is done on computers as well as manually. All the entries are made

in computer. Balance is fed into the computer. This increases efficiency of the bank.

During my internship training I gathered information regarding how a successful bank

operational aspect decorticated with the practical.

I found my internship training at National Bank Main Branch Lahore to be a very

rewarding experience. The training was beneficial because it helpful me to aware a

real life working environment.

So far my learning is concerned; all the employees at branch were quite cooperative.

They helped me to understand the activities of a bank to possible extent. Their good

attitude gave me more confidence to learn more and to ask if I have any query in my


mind. Besides their ever going activities they never get irritant by my questioning. I

had made an honest efferent to present the working & operation at Branch in

simplest way.

I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with

experienced cooperative & intelligent staff.

10. RECOMMENDATIONS AND SUGGESTIONS

Performance of general banking departments

General Banking Department, particularly the Account Opening section is not

performing well. The people who are working in the Account Opening sections are

not properly trained in public dealings. Their behaviors with the clients were not

appreciable.

Suggestion

All departments should be careful about their performance. Branch should be

inspected by inspecting parties. They should especially examine the public dealings

of the employees.

Lack of proper training

There is not proper training system among the staff. Training is necessary to show

good performance and efficiency.

Suggestion

I suggest that an arrangement of refresher courses and in service training must be

made to increase the knowledge and skills of the employees. This will help enabling

them to meet modern Banking requirement and to fill the efficient staff qualities.

Interference of union

The elected unions are headache for management now days, they interfere in

administrative matters. So there is heavy pressure of union on management, due to

which they remain under stress and pressure. If management wants to take

disciplinary action against an employee, it can not be taken due to the pressure of

union.


Suggestion

Bank should not influence by union. Rules and regulations should be followed

strictly. Management would be diplomatic towards the union.

Delegation of authority

There is no proper delegation of authority

Suggestion

Executive at all level should be given sufficient power and authority to make quick

decisions. This will increase the effectiveness and efficiency of the organization.

Distribution of work

There is no proper distribution of work.

Suggestion

All work must be distributed properly among the employees.

In adequacy of staff

In my observation, I felt that the strength of the present staff is insufficient. The staff

is affecting badly due to burden of over work.

Suggestion

The shortage of staff must be fulfilled immediately, In this way, the staff will be able

to perform its duties appropriately.

Inadequate building

The building hired by the Bank is not only a good one 'Jut also is insufficient for

proper functioning of the staff.

Suggestion

I suggest that it should be either changed or widened.

Non-installation of computer

This is an era of science and computer. Most of the Banks functioning in Pakistan

have adopted computer system. This branch is deprived of this facility yet.

Suggestion

I suggest that Bank must be computerized. In this way, it will be easy to keep up to

date records, of all accounts. So the Bank must gain benefit from this modern

electronics.


Lack of library

The library is an essential requirement for the Bank. But this Bank has no library yet.

Suggestion

The Bank must establish a library having all kinds of books, particularly about the

Banking, economic and Accounts.


11. LEARNING AS AN INTERN

I joined National Bank of Pakistan, Main Branch Lahore on 5th July, 2008. First day,

the manager introduced me about the functioning of the branch and the staff. During

the six weeks of my internship, I worked in different sections of the branch and did

the maximum practice of banking system.

a.a. DUTIES AND NEW KNOWLEDGE ACQUIREDDUTIES AND NEW KNOWLEDGE ACQUIRED

During my internship period at National Bank, initially I was assigned no particular

duties. It was completely up to me how much I could dig out according to my

strength and capabilities. But still there were some regular duties that I was needed

to accomplish efficiently and with great responsibility as follows

GENERAL BANKINGGENERAL BANKING

First of all, I was asked to work in different sections of general banking. I was

attached to Counter with Mr. Mumtaz who has good command on this section. Here

we dealt with new customer who wanted to get information and to deal with the

branch. This is a very interesting department because here we met people of

different types and deal with them accordingly. In this section, I observed the

following functions:

CHEQUE AT COUNTER

A cheque to withdraw the amount is presented on the counter with the following

requisites:

Name of the Account Holder

Current or previous date

Amount in figures

Amount in wording

One signature of the account holder in the right bottom corner of the cheque

and two signature of the bearer on the back

Branch Stamp in front of the cheque

If the Account Holder uses thumb instead of signature then the Pass Book is

necessary with the cheque

Operation’s officer checks and verifies all these requisites. If it fulfills all the

requisites, it is forwarded for payment after a certain procedure.

CHEQUE PAYMENT PROCEDURE


After all the requisites are verified and then the excessive balance is checked and

prescribed amount is deducted narrated on the cheque, then SIGNATURE VERIFIED

stamp (in case of signature only) on the signature and a PAY CASH stamp are fixed

and a Token is given to the cheque bearer after writing Token No. on the specified

cheque. Then the Officer G-II verified the cheque and forwarded it to the cashier

where the cheque bearer receives the amount from the account.

ISSUANCE OF DEMAND DRAFT

A Demand Draft is provided to the client in whom he has to specify that bank it is

drawn. The amount both in words and figures is written on Demand Draft.

BILLS COLLECTIONS DEPARTMENT

I spent second week of my training in bills collection department. Mr. Afzal is the in

charge of this section. Here we collected utility bills like electricity bills, gas bills, and

telephone bills.

BILL REMITTANCE DEPARTMENT

This is very important and interesting department. This section deals with the

transfer of money from one branch to another branch. Nearly four drafts are issued

daily from this department. Here I know how the amount is transferred and what the

procedure is. This department also deals with TT transfer of money. I worked nearly

two weeks in this department.

DEPOSIT DEPARTMENT DEPOSIT DEPARTMENT

Deposit department deals with Current, Savings, and Fixed Accounts. In current

account the bank does not give any interest and you can deposit the whole amount

in lump sum in business hours. However in PLS savings account we can only

withdraw up to Rs.25000/- without any notice otherwise a prior notification of a weak

is required to the bank if the amount to be withdrawn is more than Rs.25000/-

Old ages are interested in Fixed Account usually. The rate of interest is higher more

than that of in Current and PLS savings Account but the amount cannot be

withdrawn before a specific time fixed by the client. To open the account customer

have to fulfill an application form and submit to the concerning authority. In Current

and PLS saving Account, a Cheque Book is issued to the client and he becomes the

Account Holder of NBP. I worked in this department for one and a half week.


b. ACCOMPLISHMENTS

New knowledge Acquired

The core of my internship was the knowledge I acquired. Before internship I was

entirely ignorant of a bank’s business processes. But this internship program has

made me aware of most of bank’s business processes and hence it has built in me,

immense confidence to step into bank and carry out the routine banking tasks.

New Exposure

My internship experience has given me a completely new industry exposure in the

banking sector, which includes both the consumer banking and branch banking.. I

can say that for me the best thing about BBA was this social and professional

exposure that I longed to have.

People Diversity:

Being an introvert personality, I never had the precious experience in people

diversity. During this internship period, I interacted with so many people both

customers and employees with diverse personalities and behaviors, different age

groups, some far too senior and experienced that it has given me confidence to

interact efficiently with people.

Tactful communication; a MUST

From this internship program, I have realized that the skill to communicate tactfully is

the thing we should learn and polish, especially in dealing with customers. It is not

the most important if you don’t have the required skills at this moment. Rather, being

creative in problem solving and being a quick learner are the keys to success in the

fast growing banking sector.

Another important thing regarding communication that I have learnt is; no matter

how far we go in adopting English language; practically and within organizations,

staff prefer to communicate in their mother language i.e. Urdu, because their priority

is to efficiently complete the work to attain the corporate goal of the organization in

minimum time and they simply do not let formalities come in their way because

actions speak louder than words.

Working towards corporation goal

During my internship, in the last weeks, I started to feel part of that organization. I

actually felt working for that organization though I was merely an intern. Techniques


like how to work towards the corporation goal, tackle a problem, are not something

that can be taught in classrooms and this internship has definitely trained me in it.

Larger social circle

I have come to know and be respected by a number of professionals who are

lending their services to the banking sector for more than a decade. I feel honored

that I have worked with such seasoned professionals and have experienced broader

social awareness.

Self-discoveries

During my internship period, I self discovered that I could interact well with difficult

people and that I have the tendency of being liked by other people, who is because I

believe that to earn respect, one should give respect. Moreover people find me their

secret holder and trust me and that is perhaps because of my simple rule, which is

“no backbiting”.

Career Awareness

This program was a career awareness program as well in the sense that it helped

me in identifying my interests. What I have identified is that I want to do some thing

dynamic and not an assembly line kind of job. Moreover, I have found that in

Pakistan, it doesn’t matter what is your field of education meaning that as long as

you have the slightest idea of job in hand and you are an active learner, you can

work wonders.

Opening up new Horizons

I must admit that such interaction in that respectable professional community will

help me in seeking out job opportunities. All this experience has transformed me into

a mature person with multiple perspectives and has put me one step forward to a

better career, and also broadened my horizon.

Confidence Building

One thing I lacked and strived for was the lack of confidence in interacting in a

professional environment. Allied Bank’s supportive culture made me feel comfortable

talking to my superiors regarding problems encountered at work. I learnt to always

be responsible and have the sense of ownership when problems appear. This all has

definitely helped me build up confidence and had made me well equipped for my

career.


c. PROBLEMS ENCOUNTERED

Difficult time in getting used to new Environment

Initially I had difficult time in mixing with organization members and felt

uncomfortable in that new place with new people. However, after some time, I

became a part of it just like everyone else and felt completely comfortable.

Uses of Terminology

The other major problem was the hectic routine of the bank. It made me uneasy at

first but with the passage of time I became used it. I had to face a great difficulty in

understanding bank’s terminology by the knowledgeable guidance of the staff I was

able to overcome the problem to a satisfactory level.

Practical Applications Differ from Books

The real problem I faced in the bank was the difference between what I had learnt

from the books and what was being practiced. Practical application of the theories

learnt during academic sessions was a great challenge, which I overcame by the

cooperation of the staff.

d. HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of my field of education.

Now I feel that I am better prepared to enter the world of professional work. I have

come to know and been appreciated by a number of professionals who are lending

their services to the banking sector for more than a decade. I feel honored that I

have worked with such experienced professionals. I must admit that such interaction

in this respectable professional community will help me in seeking out job

opportunities in the near future.

Each task I performed was a different experience in itself. By the end of it, I must say

I realize my potentials, I have realized that earning money is not so easy after all, it

takes a lot of hard work and devotion, and not to forget time. And I now know that if I

want I can make things possible, and I also know how good it feels to having

accomplished something and being appreciated for it. I definitely have learnt things,

which will impact my career and my character.

The overall experience of my internship was very good; I have learnt the sense of

responsibility in its literal meaning. I am now capable of dealing with different sort of


customers, and how to be patient while doing so. Besides this I also gained

knowledge about banking which I previously lacked and many more products being

offered by the bank. So in a nutshell, this internship gave me the experience, which

would no doubt boost my confidence to work in future.


12. BIBLIOGRAPHY

www.nbp.com.pk

www.nbpusa.com

www.google.com

Mr. Bashir Ahmed (Vice President) NBP

Mr. Imtiaz Bhatti (Assistant vice president) NBP

Mr. Maqsood Mughal (Manager) NBP Main Branch Mall Road

Mr. Jamshed (OG-2) NBP Main Branch Mall Road

Mr. Bilal Bokhari (OG-3) NBP Main Branch Mall Road

Mr. Mahmood (OG- 3) NBP Main Branch Mall Road


http://www.google.com/

http://www.nbpusa.com/

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

13. GLOSSARY

NBP: National Bank of Pakistan

A/C: Account

DD: Demand Draft

TT: Telegraphic Transfer

Liquidity: “The bank’s ability not only to meet possible deposit withdrawals but also

to provide for the legitimate needs of the economy as well”.

Finance: “The science and art of managing resources especially money”.

Remittance: Remittance is transfer of funds from one place to another or from one

person to another.”

Remitter: - - One who initiates, or requests for a remittance

Remittee: - - A remittee is the one who receive the payment.

Issuing Bank:-Issuing Bank:-The bank that sends or affects the remittance, through demand

drafts, telegraphic transfers, or Mail Transfers.

Paying Bank:-Paying Bank also knows as the drawee branch. The branch on which

the instrument is drawn. It has to make the payment (usually located in a different

city country).

Bank Statement: A statement that contains past transactions carried out on an

account in a specific time period.


NBP Usman Final Report

Documents

Transcript of NBP Usman Final Report