final doc of internship

8/8/2019 Final Doc of Internship

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NATIONAL BANK OF PAKISTAN

INTERNSHIP REPORT


BBA PROGRAM

SUMMER 2009

SUBMITTED TO

PROF. NISAR AHMAD

By

MARIAM ASHRAF

L1F05BBAM2026

UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 1 | P a g e


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PREFACE

This report is about my internship at National Bank of Pakistan Faisal town Lahore. In order to

be able to cope with the changing environment it is necessary to have some practical

experience. The students are deputed to different well-established organizations. There, they

not only have a close look at the working of their respective institutions but they also take an

active part in their daily proceedings.During this practical course we are provided with an

opportunity to learn that how the theoretical knowledge can be implemented in practicalgrounds. I selected to do my internship in National Bank of Pakistan Faisal town Lahore.

During this internship span I have come to know the work criteria of almost all departments of

NBP I spent about six weeks of my internship in various departments like Bills collection,

knowing about western union, making scrolls of different kinds, clearing, bar code scaning e.t.c.

In this I have made analysis on the working and performance just as experiencing as an

employee. I have seen many daily transactions and working criteria of the bank.

During my internship I observed lot of strength and lot of weakness of the banks but I found as a

strongest bank in the country. But the national bank has an edge over the other private and

privatized banks because it is the Government Bank and it has large number of branches in the

country and also in outside the country. My overall experience of the internship is good.



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ACKNOWLEDGEMENT

o I am thankful and grateful to Almighty Allah who enables me and gave me the power to

complete my internship report.

o Secondly, I am highly thankful to my internship advisor Prof: NISAR AHMAD who gave

me most valuable guidance.

o Last but not the least to National Bank staff members who extended fullest co-operation

to me in acquiring the knowledge about various aspects of banking.



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DEDICATION

This project is dedicated to my parents and teachers

who ever wished to see me as a successful girl and

there prayers are always with me.



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Prior to partition in 1947, banking in Pakistan was dominated by branches of

British banks. The State Bank of Pakistan, the central bank, was formed

after partition in 1948. It assumed the supervisory and monetary policy

powers of the State Bank of India. In the period of 60s to 70s the

emergence of a number of specialized development finance institutions

(DFIs) such as Industrial Development Bank of Pakistan (IDBP) and the

Agricultural Development Bank (ADB). These DFIs were either controlled

directly by the state or through the SBP, and were intended to concentrate

on specific priority sector lending. In 1974 all domestic commercial banks

were nationalized by the Government. The Pakistan Banking Council was

established, which assumed the role of a banking holding company but

with limited supervisory powers. However, PBC was dissolved in 1997,

leaving the SBP as the sole regulatory authority for banks and financial

institutions in Pakistan. Nationalization of the banking sector led to pet

projects. The branch network of NCBs also proliferated in an effort to

provide banking services to all regions/territories of the country, often with

disregard to the viability or feasibility of such expansion.

INTRODUCTION OF ORGANIZATION




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NBP was established on 20.11.1949 to provide finance to suitable parties. It came

into existence after two years of Pakistans birth, to spearhead the growth

of indigenous commercial banking system to fulf i l l the requirement

regarding the commercial banking of central and provincial government.

NBP stood behind jute trade, SBP stood behind NBP and the government stood behind

SPB. Speedly it was such that 6 branches came into being at once and the doubts on

our ability to handle this situation were dispelled for ever Now, as the Jute Board and

NBP were in the field, the foreign merchants and bankers also rushed in to get their

share in the business and consequently NBP had to lay out much less finance than it

could. It was classified as a Non-profit bearing and services oriented institution.

Moreover, it was designated as Agent of the State Bank of Pakistan. The Bank has also

played an important role in financing the countrys growing trade, which has expanded

through the years as diversification took place.

In the first f ive years of the National Bank of Pakistan has trained an

entire crops of Muslim bankers; opened branches all over Pakistan, and

played a dominant role in the financing of Pakistans chief export crops

cotton and jute its position as sole fiscal agent of the State Bank of

Pakistan is f irmly established while it is essentially a commercial bank the

government itself is the principle share holder and appoints the managing

director it is this factor which distinguished the National Bank of Pakistan

from other commercial banks while it operates in much the same fashion

as they it has taken greater risks when the national interest was at stake,

and it acts as the super head of any extension of the nations banking

system.



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National Bank of Pakistan maintains its position as Pakistan's premier bank

determined to set higher standards of achievements.

It is the major business partner for the Government of Pakistan with special emphasis

on fostering Pakistan's economic growth through aggressive and balanced lendingpolicies, technologically oriented products and services offered through its large network

of branches locally, internationally and representative offices.

BRANCHES



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The Bank had a network of 1226 branches in the country and 22 branches in foreign

countries. These countries are as follows:

o

United States of Americao United Kingdom

o France

o Germany

o Africa, Middle East Region

o Bahrain

o Asia Pacific Region

o Japan

o Republic of Korea

o Central Asian States

o Bangladesh

o Peoples Republic of China

o Pakistan.



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VISION

To be the pre-eminent financial institution in Pakistan and achieve market recognition

both in the quality and delivery of service as well as the range of product offering

MISSION

To be recognized in the market place by Institutionalizing a merit & performance

culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial

performance, and Adopting & living out our core values.



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ORGANIZATIONAL STRUCTURE



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Manager

Credit

Processing

Manager

Credit

Operation

ChiefOperation

Manager

(CRA)

Chief Manager

Manager

FEX* Manager JB*Manager Admin

Manager

Compliance

FEX

Export

Import

Remittance

F/C A/C

Inquiry

Deposits

Bills

Clearing

Utilities

Accounts

Reconciliation

Dispatch

Dead Stock

Security

Staff Welfare

Audit /Inspection

To sign all Br.

Returns Money

Laundering .etc

[Sections] [Sections] [Sections]


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Manager

Credit

Processing

Manager

Credit

Operation

ChiefOperation

Manager

(CRA)

Chief Manager

Manager

FEX* Manager JB*Manager Admin

Manager

Compliance

FEX

Export

Import

Remittance

F/C A/C

Inquiry

Deposits

Bills

Clearing

Utilities

Accounts

Cash/Chest

Govt. Collection

Reconciliation

Dispatch

Dead Stock

Security

Staff Welfare

Audit /Inspection

To sign all Br.

Returns Money

Laundering .etc

[Sections] [Sections] [Sections]

*FEX Foreign Exchange

*JB Journal Banking


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REGIONAL STRUCTURE

REGIONAL CHIEF

EXECUTIVE

GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER

Advances,Legal Planning Business AdministrativeAnd Recovery Development Wing

Wing Customer Service

And Implementation

Of Audit.



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FUNCTIONS OF NBP

The National Bank of Pakistan performs two types of function. It acts as an ordinary

commercial bank, and at places where there are no branches of State Bank of Pakistan

it represents Pakistan, that is why it cannot be privatized. As a commercial bank it

performs the following functions.

oAccepting of deposits of money on current account, saving, term deposit and

other profit and loss sharing accounts.

oBorrowing money and arranging finance from other banks.

oAdvancing and lending money to its clients.

oFinancing of projects including technical assistance, project appraisal through

long term/short term loans

oBuying, selling, dealing and discounting of bills of exchange, promissory notes,

drafts, bill of lading, other instruments of securities etc.

oForeign exchange business.

o Financing of seasonal crops like cotton, wheat, rice.

oReceiving of bonds, scripts, valuable etc. for safe custody.



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oCarrying on agency business of any description other than managing agent on

behalf of clients, including government and local authorities.

oGenerating, undertaking, promoting etc. of issue of shares, bonds.

oTransacting guarantees and indemnity business.

oUndertaking and executing trusts.

oMaking investments in other banking companies.

oJoint venturing with foreign dealers, agents and companies for its representation

abroad.

oParticipating World Bank and Asian Development bank's lines of credit.

oUtility services.

oProviding Hajj services to intending Hajis.

o Agent to State Bank of Pakistan for collecting.

oPayment of pension on behalf of provincial and central governments.

oTreasury business.

oGold finances.



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PRODUCTS / SERVICES OF NATIONAL

BANK.

DEMAND DRAFT

If you are looking for a safe, speedy and reliable way to transfer money, you can now

purchase NBPs Demand Drafts at very reasonable rates. Any person whether an

account holder of the bank or not, can purchase a Demand Draft from a bank branch.

PROCEDURE FOR PREPARE DEMAND DRAFT.

o A draft voucher is filled which contains the following information

Name of the parties involved

Date

Amount to be sent

Account number (if DD is crossed)

o A credit voucher is filled in order to get the excise duty, withholding tax and

exchange commission.

o The sender deposits the total amount of the two vouchers i.e. the debit and credit

vouchers.

o Then the cashier sends the cash receipt voucher to the accounts department and

the account records the amount paid in his cash scroll.



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o Accountant gives the DD leaf along with the DD voucher to his assistant who

records the senders name, amount and receivers name. After writing all the

information in the DD register he gives it to the officer along with the DD for

authentication.

o After authentication the DD is handed over to the sender and bank sends the

advice to the concerned branch. So when the party presents the DD in the

concerned branch its payment could be made.

PARTIES INVOLVED IN THE DEMAND DRAFT

The following parties are involved in demand draft

o Purchaser of sender

The purchaser is the person who sends the money to a particular person payable

at a certain branch.

o Issuing or drawing Branch

The branch from where the demand draft is issued to another branch of the same

bank.

o Drawee Branch

Branch in which the draft has drawn and called upon to pay the amount.

o Payee



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The person who is entitled to receive the amount after presenting the demand draft in

the drawee branch.

TELEGRAPHIC TRANSFER (TT)

This is the most urgent method of remitting the money from one place to another place.

This method is used when the sender desires to send urgently, in this case the sender

request the manager of the branch to issue TT.

PROCEDUREFor sending the TT the manager applies a test. In the test the manager uses a coding

technique. He writes his own code number, which is allotted, to him as the bank branch

code. After making all the conformation the concerned branch makes the payment to

the receiver.

If the sender wants to convey the same massage through telephone then he has to pay

the charges of telephone along with the TT Charges. First the person deposit the TT

amount along with the charges through the credit voucher then his TT sent to the

relevant branch.

SWIFT SYSTEM

The SWIFT System (Society for Worldwide Inter bank Financial Telecommunication)

has been introduced for speedy services in the area of home remittances. The system

has built-in features of computerized test keys, which eliminates the manual application

of tests that often cause delay in the payment of home remittances. The SWIFT Center

is operational at National Bank of Pakistan with a universal access number NBP-

APKKA. All NBP overseas branches and overseas correspondents (over 450) are

drawing remittances through SWIFT.



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Using the NBP network of branches, you can safely and speedily transfer money for our

business and personal needs.

LETTERS OF CREDITS

NBP is committed to offering its business customers the widest range of options in the

area of money transfer. If you are a commercial enterprise than our letter of Credit

service is just what you are looking for. With competitive rates, security, and ease of

transaction, NBP Letters of Credit are the best way to do your business transactions.

TRAVELERS CHEQUES

Negotiability: Pak Rupees Travelers Cheques are negotiable instruments

o Validity: There is no restriction on the period of validity

o Availability: At 700 branches of NBP all over the country

o Encashment: At all 400 branches of NBP

o Limitation: No limit on purchase

o Safety: NBP Travelers Cheque is the safest way to carry our money

PAY ORDER

NBP provides another reason to transfer your money using our facilities. Our pay orders

are a secure and easy way to move your money from one place to another. And, as

usual, our charges for this service are extremely competitive.

PROCEDURE

The procedure of a pay order varies with the nature of the purpose. If the work is of

huge amount then first the manager writes a letter to the Zonal Chief in order to get



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sanction of the work. Then the advertisement of the work is given in the newspaper in

order to invite the contractors. But if the work is small then the branch manager has

discretionary power to select the party whose rate is lowest. After finishing the work the

contractor submits the bill of work on his stamp pad. Then the bank issues a pay order,against the pay order the contractor gets the amount from the issuing branch.

MAIL TRANSFERS

Move your money safely and quickly using NBP Mail Transfer service.

And we also offer the most competitive rates in the market.

It is the transfer of money from one branch to another branch of the same bank through

mail service. In mail transfer there is no need of advice as the amount is directly to the

receivers account.

PROCEDURE

o First a voucher is filled in which the sender writes the amount to be sent, name,

account number of the receiving person with the branch name and date.

o A credit voucher is filled in order to deduct exchange, postage charges and

withholding tax according to the amount of the mail transfer.

o The sender deposits the total amount of the two vouchers in the cash department.

o The cashier gives the vouchers to the accountant after affixing received stamp and

writing the amount in red ink.

o Then the accountant writes the amount paid in the cash scroll and gives the MT to

his assistant.

o MT leaf is filled according to the information provided in credit voucher. He also

writes the same information in the MT register. Then he gives the MT leaf and MT

register to the officer for authentication.

FOREIGN REMITANCES



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To facilitate its customers in the are of Home Remittances, National Bank of Pakistan

has taken a number of measures to increase home remittances though the banking

system

Meet the SPB directives/instructions for timely and prompt delivery of remittances to thebeneficiaries.

SHORT TERM INVESTMENTS

NBP now offers excellent rates of profit on all its short-term investment accounts.Whether you are looking to invest for 3 months or 1 year, NBPs rate of profit are

extremely attractive, along with the security and service only NBP can provide.National Income Daily Account (NIDA)

The scheme was launched in December 1995 to attract corporate customers. It is a

current account scheme and is part of the profit and loss system of accounts in

operation throughout the country.

EQUITY INVESTMENTS

NBP has accelerated its activities in the stock market to improve its economic base and

restore investor confidence. The bank is now regarded as the most active and

dominant player in the development of the stock market.

NBP is involved in the following:

Investment into the capital market

Introduction of capital market accounts (under process)

NBPs involvement in capital markets is expected to increase its earnings, which would

result in better returns offered to account holders.

COMMERCIAL FINANCE

Let us help make your dreams become a reality.



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Our dedicated team of professionals truly understands the needs of professionals,

agriculturists, large and small business and other segments of the economy. They are

the customers best resource in making NBPs products and services work for them.

AGRICULTURAL FINANCE

NBP provides Agricultural Finance to solidity faith, commitment and pride of farmers

who produce some of the best agricultural products in the world. Agricultural Finance

Services:

I Feed the World program, a new product, is introduced by NBP with the aim to help

farmers maximize the per acre production with minimum of required input. Select farms

will be made role models for other farms and farmers to follow, thus helping farmers

across Pakistan to increase production.

Agricultural Credit

The agricultural financing strategy of NBP is aimed at three main objectives;-

o Providing reliable infrastructure for agricultural customers

o Help farmers utilize funds efficiently to further develop and achieve better production

o Provide farmers an integrated package of credit with supplies of essential inputs,

technical knowledge, and supervision for farming.

Agricultural Credit (Medium term)

o Production and development

o Watercourse improvement



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o Wells

o Farm power

o Development loans for tea plantation

o Fencing

o Solar energy

o Equipment for sprinklers

o Farm Credit

NBP also provides the following subsidized with ranges of 3 months to 1 years on a

renewal basis.o Operating loans

o Land improvement loans

o Equipment loans for purchase of tractors, farm implements or any other equipment

o Livestock loans for the purchase, care, and feeding of livestock.

PRODUCTION LOAN

Production loans are meant for basic inputs of the farm and are short term in nature.

Seeds, fertilizers, sprayers, etc are all covered under this scheme. If you require any

further information, please do not hesitate to e-mail us.

CORPORATE FINANCE

Working Capital and short Term Loans

NBP specializes in providing Project Finance Export Refinance to exporters Pre

Shipment financing to exporters Running finance Cash Finance Small Finance Discounting & Bills purchased Export Bills Purchased / Pre shipment / Post

shipment agricultural production loans

Medium term loans and Capital Expenditure Financing



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National Bank of Pakistan is at the forefront of international banking in Pakistan, which

is proven by the fact that NBP has its branches in all of the major financial capitals of

the world. Additionally, we have recently set up the Financial Institution Wing, which is

placed under the Risk Management Group. The role of the Financial Institution Wingis;-

To effectively manage NBPs exposure to foreign and domestic correspondence

Manage the monetary aspect of NBPs relationship with the correspondents to

support trade, treasury and other key business areas, correspondents support trade,

treasury and other key business areas, thereby contributing to the banks profitability

Generation of incremental trade finance business and revenues

CORE VALUES

OBJECTIVES

Remodeling the bank on the lines of latest global practices.

Converting the NBP in to a viable platform for financial success and growth.

Stabilization of deposit base.

Shall work to

Meet expectations through Market-based solutions and products.

Reward entrepreneurial efforts.

Create value for all stakeholders.

Aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers.

Prudence to guide our business conduct.

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



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Confidence that tomorrow we will be

Leaders in our industry.

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to the changing needs

of the internal and external environment

Origination of new ventures.

Development of new business plans and consequently to become a bank, which

we can all be proud of.

All strategies are focused to become a leading consumer bank in Pakistan.

A bank responsive to the needs of target market customers.

Delivery of superior services to their stakeholders.

Aim to be peopling who Care about relationships.

Lead through the strength of our commitment and willingness to excel.

Practice integrity, honesty and hard work. We believe that these are measures of

true success.



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SALARY STRUCTURE

Bonuses

Bonuses are also given to permanent employees on their performance basis. In case of

very good performance 2 basic salaries are given and in any other case after every six

months i.e. June and December. These are first and second profit bonuses and are

equal to one month's basic salary.

Allowances:

Allowances included house allowances, transport allowance and utility allowance.

Provident Fund:

Provident fund is provided to each employee on his retirement. Contribution by

employer and employee.

Preparation of statements:



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Second major functions of accounts department are the preparation of various

statements. These statements are:

1) - Weekly Statements:

These weekly statements are sent at first to NBP head office Karachi.2) - Monthly Statements:

These monthly statements are sent at first to NBP head office Karachi and then these

statements are sent to head office affairs in consolidated form. All vouchers and

statements signed and approved by manager accounts or who has authority to sign on

behalf of the bank and whose signatures appear in one of the banks book of specimen

signatures or a person who has authority to sign internal vouchers and records extent of

its authority will be made by the country manager.

LEAVE FAIR ASSISTANCES AND ITS TYPES

3 Types of LFA are:

CASUAL LEAVES 4 leaves are allowed to permanent employees.

SICK LEAVES 12 leaves are allowed to permanent employees.

PRIVILEGE LEAVES 15-30 leaves are allowed to permanent employees.

Employee entitlements to annual leave are recognized when they accrue to employees.

A provision is made for estimated liability for annual leave as a result of Services

rendered by the employee against un-availed leaves up to the date of balance sheet.



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DEPOSIT SECTION

All types of cash transactions are deled under this section. Now we see the types of

accounts, which are opened in this section.

TYPES OF THE ACCOUNTSDepositors can open the following types of accounts with the National Bank of Pakistan

oCurrent account

oP.L.S saving account

oP.L.S Term Deposit Account

oM.I.S (Monthly Income Scheme)

A brief introduction of these accounts is given below.

CURRENT ACCOUNT

As the name signifies the depositor can draw or demand amount at any time by

presenting the cheque in bank. Unlike time deposits there is no restriction of



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withdrawals. The bank neither pays any kind of interest nor deducts the zakat from the

deposits of these accounts. The bank also does not tale any service charges up to the

minimum balance of account from the depositors. The minimum balance required to an

account to be opened is Rs. 5000/-. If balances in account reduce from the minimumBalance then the bank charges Rs. 25/- as incident charges. In developed and

developing countries

a very significant amount of money is kept under current account. Businessman

normally opens this kind of account.

PROFIT & LOSS SHARING SAVING ACCOUNT

In these P.L.S accounts the bank gives no fixed rate of profit. These types of deposits

are designed to encourage the saving habits of the people.

The minimum deposit to open this account is Rs. 500/-. After every six months a rate

of profit is announced by the bank and after calculating the amount, it is credit to the

depositor account. Now a day, if an account holder maintains 3000/- minimum balance

throughout the year then his account is eligible for profit. Also on 1 st day of Ramadans

Zakat is deducted at the rate of 2.5 % Restriction on withdrawal of heavy balance in

now abolished. Customer con withdraw their amount at no limit.

P.L.S TERM DEPOSIT

In this type of account the amount is deposited for a specified period of time. This period

varies from 7 days minimum to maximum 5 years. The profit rate is also changes with

the short period to long period. There is higher rate of profit on long term P.L.S T.D.R.

The minimum balance required to open this type of account is Rs. 10000/-. Profit is

announced after six months and then credit to the respective accounts.



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MONTHLY INCOME SCHEME

This scheme is commonly known as (MIS). This scheme required minimum balance

which is Rs. 10000/-. Profit is announced after every six months but it is credit to the

customers accounts on every month. Mostly retired persons are like to open this type of

account.

ACCOUNT OPENING PROCEDURE

The customer can open an account with the National Bank of Pakistan in the following

categories

o Individually

o

Jointlyo Sole proprietorship

o Partnership

o Corporation

INDIVIDUAL ACCOUNT

A person can open an account in National Bank of Pakistan in Pak-rupee, first of all

he/she has to fill the account opening form provided by the bank. Then his introduction

is done before the branch manager. An existing account holder of

The bank or an officer of the bank who know him very well can do this introduction. A

copy of his identity card is must attached with his account opening form. If the account



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holder is illiterate then he/she provides his/her three recent photographs to the branch.

In order to stop the payment from his account if is necessary to give the instructions in

black and white. The account holder can get the statements of accounts from the bank

at his will at any time without any charges.

JOINT ACCOUNT

A person can open an account in N.B.P in Pak-rupee. An account opening form is

given form that branch where he wants to open his account. In that opening form he

provides complete information about the account holders. If any one or both of them

are illiterate then he or they give the photographs to the bank. Then the introduction of

the person is done.

A copy of their identity card is must attached with his account opening form. He or she

also states the made of operation with is clearly written in their account opening form.

In joint account there is two modes of operation first are Jointly and second is E or S.

In jointly mode both the persons must sign the cheque. And for any of transaction they

must dually signed the documents while the either or survivor mode any one of them

can sign the cheque and withdraw his money.

SOLE PROPRIETORSHIP

The person who is the sole owner of a business can open an account with NationalBank of Pakistan after providing the following documents to the bank officer.



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o Current municipal license

o Commercial registration certificate

o Copy of identity card

In some special cases when the officer of branch is doubtful about the authenticity of

the documents he can get additional documents for proper verification. The branch

manager studies all documents of the business. If he is satisfied then the account of

the party is opened with the bank. Normally these types of accounts maintained under

Current account system.

PARTNERSHIP FIRMS

The partnership firms can also open an account with the bank. But for this purpose theyhave to provide the certain type of information to the bank. For this purpose a form isprovided to the account holder in which they provide the following information to theconcerned branch and the person who can draw the amount from the bank is alsonominated.

o Name of firm

o Name of parties

o Identity card of partners

o Registration certificate of the firm

LIMITED COMPANY / CORPORATION

In order to open the account of a company the following documents are required by the

bank so that the bank could take action in case of any fraud of discrepancy.

Memorandum of Association

Memorandum of Article

Most recent balance sheet and profit and loss statement



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Resolution of board of directors about the person who is authorized to sign the

Cheques.

Any other documents

ISSUANCE OF CHEQUE BOOK

Now a days National Bank of Pakistan issue free of cost cheque books. Size of

chequebook is varies. It contains 10 leaves to 100 leaves. The assistant writes the

following information on the title page of the chequebook and chequebook issuance

register.

o Issuance date

o Name of account holder

o Account number

o Type of account

After authentication by the authorized offer on the chequebook register, the chequebook

is handed over to the account holder

DEPOSITING OF THE AMOUNT

Account holder can deposit the amount in cash or draft etc, in his account through credit

voucher. In N.B.P to type of vouchers are used for this purpose

o Green voucher, which is used for Cash Receipts

o Pink voucher, which is used for all Non Cash Receipt like drafts, Cheques,

payment orders etc.

ENCASHMENT OF CHEQUES



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CLOSING OF ACCOUNT

There are many reasons for closing of an account. It is not a good indication for the

business of the bank. Some of the more common reasons are as follows

o Account holders own request

o Death of the account holder

o Bankruptcy of the account holder

o Closing of account due to bad conduct of account holder etc.

An account is closed at the request of account holder or as a result of improper conduct

of the accept holder or because of nil balance of the account. In first case account

holder requests in black and white to the branch manager to close his account. While in

seconds case the branch manager is authorized to close the account.

But bank before closing the account first sends a letter to the account holder that his

account will be closed.

So after fulfilling the legal requirements, it is marked of the accounts holders number

that the account has been closed.

Documentation Requirement

All potential cardholders must complete and sign NBPs credit card application form.

The application form must be accompanied by the following

o Three-passport size color photograph bearing the name of the applicant at the

back.

o An attested copy of the National ID Card.

The following documents are also required depending upon the applicant

Individuals (salaried)UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 37 | P a g e


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A copy of three months bank statement, where the salary is directly credited into bank

account or latest salary slip.

Individuals (self employed)

The individuals are required to provide personal bank account statement for the last six

months, personal tax assessment order (for last two year), and one of the following.

Business premises rent agreement / property deed (for sole proprietors) or attested

copy of partnership deed (for a partner in a firm) or Attested certificate of share holding

duly stamped and signed by the secretary of the company (for company owner).

Individuals (with guarantee)

The applicant is required to provide a guarantee from the company / partnership firm

duly signed by the authorized signatory / all partners, along with the following

documents.

o Company Guarantee

Copy of memorandum and articles of association with certificates of incorporation of

guarantor.

o Partnership Clients

o Attested copy of partnership deed.

o Tax assessment order for the firm (for last two year)

o Audited financial statements of the firm (for last two year).



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DIFFERENT SCHEMES CONDUCTED BY NBPDIFFERENT SCHEMES CONDUCTED BY NBP

National Bank of Pakistan always makes efforts to improve its goodwill in the general

public. It introduces different kind of schemes time to time.

The most popular schemes conducted by NBP are as under:

oHajj Mubarak Scheme

oNBP Advance Salary Scheme

oFund Management Scheme

HAJJ MUBARAK SCHEME

For the convenience of a person with a limited income who desires to perform Hajj, Hajj

Mubarak Scheme is introduced. Moreover, National Bank of Pakistan processes the

Hajj applications of thousands of people successfully more than any other bank in

Pakistan.



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NBP ADVANCE SALARY SCHEME

This facility is available to permanent employees of the:

o Federal and Provincial governments

o Semi-governments, autonomous, semi-autonomous, local bodies, and

government corporations

o Other corporations approved by NBP

No guarantee, collaterals, or insurance is required to avail this scheme. NBP gives

the facility to repay the excessive amount within 1 to 36 months. The procedure is

very easy, just fill the application form and choice between 1 to 36 months and

take your NBP Advance Salary within 3 days after submitting your form.

FUND MANAGEMENT SCHEME

This scheme is offered to corporate under customer and is aimed at providing better

rate of return up to 15% per annum. One of the objectives of the scheme is to develop

the secondary market for government securities.



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INTERNSHIP EXPERIENCE

My branch is not a big branch online processure is not there and I have only performed

the limited activities due to small branch and the activities which I have performed

during my intership are:

Transfer vouchers

o Separating all the pay order of request for transfer of funds, credit vouchers,

intercity Cheques

o Checking that these were properly filled and signed.

o Arranging all those according to the account number.

o Placing them in the register and branch code, date, and number of debit and

credit vouchers columns was filled.



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Account Opening Department

I This department deals with opening current and saving account for its customers and

all matters regarding thereof. The customers opening current and saving accounts can

be categorized as following.

o Individual

o Firm

o Company

o Trust

o Staff

o Others

OPENING ACCOUNTS

o For opening an account firstly all the customers have to fill a form prescribed by

the bank.o The person is required to bring some reference or introduction for opening the

account. Introducer may be the person who has any account with NBP.

o Some important information regarding introducer e.g. the name and account

number of the introducer is written on the space provided on the specimen

signature card.

o Then in order to find out whether he is a true introducer or not, a letter is sent to

him thanking him for this introduction so that anything wrong may come into

notice.

There are different requirements for different types of accounts and accountholders.



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DEPOSITS

The procedure undertaken upon receiving deposits from the customers is as follows:

oExamining the deposit slip to ensure that the name and the account numbers are

clearly indicated.

oCounting the cash and cheques and agree the total with the amount on the

deposit slip.

oAfter that the pay in slip is validated for cash transaction and transfer and

clearing transfer as appropriate before the counterfoil is handed over to the

customer.

WITHDRAWALS

o Cheques can withdraw amount.

o The withdrawals can be made only at the branch where the account is

maintained. The officer under his full signature authorizes all cash withdrawals.

o No third party withdrawal is permitted.

o In current account, the bank does not offer any interest.

o We can deposit or withdraw any amount during banking hours.

ISSUANCE OF CHEQUE BOOK

o After receiving the cheque book requisition I take out a cheque book according to

the requirement.

o Then I noted down the date, serial number, account holder name, account

number, amount deducted from his account in a register named cheque book

issuance Register

Date Name Account

Number

Amount

Debited

Serial no. of cheque

book



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NBP have a special policy they issues cheque books to its employ free of cost. After

noting the information in a register a stamped the entire cheque book leaves containing

the account number of the account holder. Then I filled the requisition in the cheque

book writing the account number, account title, serial number of cheque book.Another interesting work which I perform in this department is that just to make a phone

call to those account holders whose cheque book is in present in the bank but they are

not coming to collect it. Before cheque book is presented to the account holder cheque

book issuance is registered.

Cheque book issuance register includes:

o Date

o Cheque book number

o Account holders name

o Account number

o Date

o Initials

o Remarks

I used to separate all those requisitions and carefully scrutinize them and criteria

were:

o Account number

o Account title

o Number of cheque books required

o It should also mention that how many leaves cheque book is required because

50 leaves cheque book bank charge Rs. 150 for that and 25 leaves cheque book

Rs. 75 is charged.

o The authorized officer had duly signed it. On the backside accountholder

signature and the bearer signatures are present.



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CLEARING DEPARTMENT

Main branch receives the cheques from all of its branches and makes the lots of these

cheques again. Main branch sends these cheques to the state bank of Pakistan where

a clearinghouse exits. In this clearinghouse the representatives receive their cheques

and go back to their bank's main branch. Then the main branch sends these cheques

to their relevant branches where the validity of these cheques is verified and the

accounts of the relevant clients are affected.

The statement of clearing was submitted before 1.00 P.M. daily. The whole procedure

of clearing is completed within two days.

SWOT ANALYSIS

STRENGTH

National Bank of Pakistan gets the followings Awards:

o Bank of the year for the 2004

o Foreign exchange bank in Pakistan 2005



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o Best Bank of the year 2005 of Pakistan

o Bank of the year 2005 for Pakistan

o National Bank of Pakistan introduces the Advance salary plan you can take 15

Advance salaries from the National Bank of Pakistan.

o Bund road branch open in August 2005 in one year his current A/c holders are

almost 500 and PLS A/c holders are around 1500.

o National Bank of Pakistan has very effective Network of branches all over the

country. Every 10th Pakistani is A/C holder of National Bank of Pakistan has

made huge investment in almost all the important economic sectors of Pakistan.

National Bank of Pakistan not only has made investment in industry but also in

small scale industry as well. National Bank of Pakistan has efficient & less

bureaucratic set up.

WEAKNESS

o No consumer banking has offered by the National Bank of Pakistan to its clients

like phone banking evening banking etc.

o Computer l i teracy is very weak over there.

o For wi thdrawing cash against the cheque the process is too s low

and old and many other foreign bank adapting new method.

o Old employees are not cooperative with the customers and also rigid. It might be

due to their low qualification.



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o Machinery and equipment l ike stationary are not very much good.

o Most of the national bank branches are offl ine.

o Method o f enter ing the Sui Gass Wasa B il ls and Government

receipts are manual which is not effective.

OPPORTUNITY

o Now there is a trend that financial institution are going towards to the Islamic

banking .For National Bank of Pakistan it us the big opportunity if he deal in

consumer banking because new banks deals in consumer banking and earn lots

of profit. The consumer banking is the one of the low risky sector in banking .as

the State bank is collecting the funds form public with the name of Islamic

deposit.

o National Bank of Pakistan oldest bank in the country people do rely on this bank

with some additional efforts bank can attract high deposit from Pakistan and

overseas.

o Now-a-days National Bank of Pakistan has been investing almost 18% of its total

investment on cotton business; along with investment in cotton it should invest in

other cash crops, i.e. Rice, Sugar Cane, Tobacco, Wheat etc and there related

agro based industry.

o Instead of emphasizing on big & long term projects bank should concentrate on

small scale investments heaving small maturity period.

THREAT



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o Foreign banks are financially strong and their way of doing business is very

moderns. They deals only in corporate and earn lot of profits from very little

numbers of customers with low expenditures.

o

New incoming local & specially foreign banks those are main cause of stiffcompetition in the market.

o Pakistani economy is very weak this factor also change the policies of State bank

this is the limitation which is faced by every bank in Pakistan like day to day

change in liquid ratio and war taxes, and decrease in the dollars rate badly

damage the business if the financial institutions.

o First threat that bank has to face is the Privatization, down sizing & restructuring these

changes could make drastic effects as well

RECOMMENDATIONS

o I recommend that National bank of Pakistan should flourish certain marketing

plans to attract the customers by giving them certain incentives and beneficial

schemes to the customers as other competitor banks are doing so.

o Also the Government should take interest to recover its bad debts, which can

improve its financial position.

In case of giving the loans, it is necessary to check the repute of customer towards



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oThere must be a friendly environment among all the employees as it enhances the

trust and sincerity.

oNBP should be focusing its attention towards the share of traveler cheque.

oBranch manager should be trained in the field of selling to serve better according tothe expectation of customers.

o It is strongly recommended that N.B.P. should go for computerization rather than

manual work, which is very slow and time, consuming process. In this age N.B.P.

even does not have a partially computerized system where as other new competitor

banks are now going towards on-line banking services.

oThere are many employees who are working on ad-hoc basis creating dissatisfaction.

The deserved should be made permanent employees.

CONCLUSION

I am thankful to my intership advisor that he gave me an opportunity to do my internship

at NBP. It gave me a very good experience on how to work in a bank and also it was

great fun to meet some very nice people the employees at bank are very helpfull. As my

intership time was less so I was unable to learn more things.



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I observed that NBP has some very good points and these are:

o As a whole bank is performing well in the financial markets

o

The overall working environment is good.o Management gives full support to their staff and provides them benefits and

reasonable salaries.

o NBP is very popular among business circles.

o The employees are very cooperative and helpful and they have friendly relations

with each other.

NBP is working progressively and the management is performing its role in a very good

manner.All the policies of the bank shows a positive trend, which indicates that

profitability; solvency and liquidity position of bank is sound.

BIBLIOGRAPHY

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

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


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o www.google.com

o www.askgeeves.com

o www.encyclopedia.com

o www.vickipidia.com

o www.bankerclub.com

o www.sbp.org.pk

o http://www.ibp.org.pk

http://www.google.com/http://www.askgeeves.com/http://www.ibp.org.pk/http://www.google.com/http://www.askgeeves.com/http://www.ibp.org.pk/


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APPENDIX

final doc of internship

Documents