internship report on nbp for finance studen enc

8/3/2019 Internship Report on NBP for Finance Studen Enc

1/38

A n I

www.vu39.comN a m e o f O r g a n i z a t i o n :

S u b m i t t e d B y :

Javed Hussain

MC062000032

S u b m i t t e d T o :Instructor PRO619

V i r t u a l U n i v e r s i t y o f P a k i s t a n


2/38


3/38

www.vu39.comD e d i c a t i o n

I dedicated this Internship Report to

My family members and VirtualUniversity of Pakistan

2


4/38

Acknowledgement

All praise to Allah, the most merciful, kind and beneficent, and the source of all

knowledge, wisdom within and beyond my comprehension. He is the only God, who

can help us in every field of lif e. All respect and possible tributes goes to my Holy

Prophet Mohammad (SAW), who is forever guidance and knowledge for all human

beings on this earth.Heart full thanks for Mr. Muhammad Imran Wahid Principal IPS- Intellectual Prestige

Computer Science College Mailsi (PMLS01), for special arrangement of equipments

in computer lab and providing informative books in library. Without his co-operation

it was not possible for us to complete my MBA Program.

I am very grateful to my Project supervisor at Virtual University of Pakistan. He

guided and helped me through timely suggestions, valuable advices and specially the

sympathetic attitude, which always inspired me for hard work.

I am proud to say that I am very grateful to my family whose kind prayers and

cooperation helped us at every step of my work. Special thanks go to my parents for

their cooperation for the sake of my knowledge.

I am really very thankful to Ch. Ikram Ullah Operational Manager National Bank

Main Branch Mailsi for her cooperative attitude during the completion of my project

work. He helped and supported me during gathering and analyzing information. I amreally very thankful to one of my friend Mr. Mohsin Raza for his cooperative attitude

during the completion of my project work. He helped and supported us during

gathering and analyzing information.

3


5/38

Executive summary

To interrupt my skills and educational knowledge of Finance I done my internship in

National Bank of Pakistan Mailsi Branch District Vehari and to know how I will work

in financial institutions and among various types of people have differ ent attitude.

The objective of this Internship was to explore the issues relating to Finance and tofind out problems regarding the theoretical concepts with practical experience

working in an organization during the internship and study the system of National

Bank of Pakistan. There are many possible improvements, which we can make

positive changes in the system.

There is shortage of employees in the organization. With development of online

banking system the load of work can be decreased. All the staffs do not know about

computer. There is almost one or two employees are trained to operate the system in

every branch. Especially, the cash department is not familiar with computer and

infor mation system.

It is not easy for it to implement a new system immediately it takes a lot of time to

replace systems. Once implemented its testing takes more time. So it is important for

the Bank to develop a research department for redesigning the operations of the Bank.

The Finance of the bank is experienced but not adequate with the changing

environment of financial institutions. I observed that seniors are illiterate of computer

and not technical hands. New comers have more knowledge about business

administration and skilled in information technology. To update the skills, it is

suggested to develop human resources training programs and refresher courses.

4


6/38

Internship Certificate

5


7/38

Table of Contents...................................................................................

..................

MC062000032

1..............................................................................................

........................

Dedication

2......................................................................................

...................

Acknowledgement 3.....................................................................................

...................

Executive summary

4.........................................................................................................

..............................

4....................................................................................

..................

Internship Certificate

5

.......................................................................................

.....................

Table of Contents

6.............................................................................................

.......................

Introduction

7.........................................................................................................

..............................

7Overview of the organization

............................................................................

...........

10Organizational structure

.................................................................................

..............

20Number of employees................................................................................

.............

22......................................................................................

.................

International Level

23Plan of your internship program

.........................................................................

..........

23Introduction of Branch..................................................................................

..............

23xiv) Islamic Banking................................................................................

..............

26Functions of the Finance Department

....................................................................

......

28Accounting system of the organization...............................................................

....

28Finance system of the organization...................................................................

......

28Use of electronic data in decision-making............................................................

..

28

Mobilization of funds.

................................................................................

..............

29..................................................................................

...............

Generation of funds 29...................................................................................

...............

Allocation of funds 29.........................................................................................

...................

Critical analysis

29.........................................................................................................

............................

33SWOT Analysis of the organization

.....................................................................

........

34..............................................................

...

35

...........

35

.........................................................................................

...................

Opportunities

35...............................................................................................

.......................

Threats

35Conclusion & recommendations........................................................................

.........

36..............................................................................................

.....................

References 37.................................................................................................

.......................

Annexes

37.........................................................................................................

............................

38

6


8/38

Introduction

NATIONAL BANK OF PAKISTAN

(Incorporated under the National Bank of Pakistan Ordinance, 1949)National Bank of Pakistan (the bank) was incorpor ated in Pakistan under the National

Bank of Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan.Its registered and head office is situated at I.I. Chundrigar Road, Karachi. The bank is

engaged in providing commercial banking and related services in Pakistan and

overseas. The bank also handles treasury transactions for the Government of Pakistan

(GoP) as an agent to the State Bank of Pakistan (SBP). The bank operates 1,243

(2007: 1,232) branches in Pakistan and 22 (2007: 18) overseas branches (including

the Export Processing Zone branch, Karachi). Under a Trust Deed, the bank also

provides services as trustee to National Investment Trust (NIT) including safe custody

of securities on behalf of NIT.

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

determined to set higher standards of achievements. It is the major business partner

for the Government of Pakistan with special emphasis on fostering Pakistan's

economic growth through aggressive and balanced lending policies, technologically

oriented products and services offered through its large network of branches locally,internationally and representative offices.

The Bank is providing all banking services of mercantile and commercial banking

per missible in the country, which includes:

Handling of treasury transactions for the Government of Pakistan as agent to the

State Bank of Pakistan.

Providing services under a Trust Deed as Trustee to the National Investment Trust

(NIT) including safe custody of securities on behalf of NIT.

Accepting of deposits of money on current, fixed, saving, term deposit and profit

and loss sharing accounts.

Borrowing money and arranging finance from other banks.

Advancing and lending money to its clients.

Financing of projects, including technical assistance, project appraisal through long

7


9/38

term short-term loans, term finance and musharika certificates, etc.

Buying, selling, dealing, including entering into forward contracts of foreign

exchange.

Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.

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

Carrying on agency business of any description other than managing agent, on

behalf of clients including Government and local authorities.

Generating, undertaking, promoting, etc. of issue of shares and, bonds, etc. Transacting guarantee and indemnity business.

Undertaking and executing trusts.

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

abroad.

Participating in "World Bank" and "Asian Development Bank's" lines of credit.

Providing personalized Hajj services to intending Hajjis.

Branch Network

Presently the Bank is divided into 10 Groups headed by SEVPs/EVPs. 9 Regions

reporting to as many Regional Chiefs and 15 Single Branch Zones headed by Zonal

Chiefs; 12 Corporate branches and 1,254 domestic branches headed by Branch

Managers control its field operations.With the geographical development of its branches, the Bank has been able to extend

its services to a much larger number of Pakistanis all over the countr y. Today it has

more than 8.5 million accounts. Bank maintains its presence in all the major financial

centers of the world through its 21overseas branches and 4 representative offices. Of

these, three representative offices have recently been set up at Tashkent (Uzbekistan),

Baku (Azerbaijan) and Almaty (Kazakhstan) to take advantage of the emerging

opportunities in CIS countries. Banks role globally is well assisted by its network of

correspondent banks located strategically in Asia, America, Europe and Africa.

Apart from having a vast branch network, Bank is at the forefront in the acquisition and

application of new technologies in every aspect of its banking facilities. It has acquired

leased telephone lines for on-line banking. The Bank has 12 Regional Computer Centers

to cover various on-line and batch system requirements of branches and controlling

offices. Bank has also a presence on the Internet. It has modernized its services by

installing Automated Teller Machines (ATMs) called "CASH LINK" at selected

branches and presently 17 ATMs are operational in major cities.Branch Network: (As of September, 2007)

1236 Domestic Branches, 18 Overseas Branches,

4 Representative Offices, 5 Subsidiaries and a Joint Venture.Overseas Branch Network:

Paris, Frankfurt, New York, Washington D.C., Tokyo, Osaka, Hong Kong, Kowloon,

Seoul, Bahrain, Dhaka, Chittagong, Ashgabat, Bishkek, Baku, Kabul, Jalalabad and

KEPZ Offshore Banking UnitRepresentative Offices:Beijing, Tashkent, Chicago and TorontoSubsidiaries:CJSC Almaty, Kazakhstan

8


10/38

www.vu39.comNBP Capital Ltd.

National Bank Modaraba Management Co.

T a u r u s S e c u r i t i e s L t d .

NBP Exchange Company Ltd. www.vu39.comJoint Venture:

United National Bank Ltd., UK

(Economic Indicators Pakistan, Published by Economic research Wing NBP, HeadOffice Karachi)

Present Status of the Bank

The new management team having extensive experience of management of large

financial institutions both within and outside the country is expected to further

enhance the profitability and operational efficiency of the Bank.

Prospects

The Bank's principal strategic going forward objective is to make the transition from a

public service institution to a modern commercial bank. Being the country's largest

financial institution, the Bank is uniquely positioned to leverage its large branch

network and its 8.5 million-customer base to consolidate its core businesses as well asdevelop new revenue generating opportunities.

The new management team is in place combining the Bank's existing personnel with

professionals recruited from outside. Operating procedures are being re-defined and

internal controls strengthened utilizing a revamped IT architecture. A brief on the

progress on some critical areas is as follows:

Corporate & Investment BankingA n e w a p p r o a c h t o c o r p o r a t e b a n k i n g i s u n d e r w a y . T h e B a n k

h a s i n i t i a t e d a s t r u c t u r e d

approach to corporate banking by introducing a single point of contact through

Relationship Managers (RMs). For this purpose, new RMs as well as team leaders

have been inducted to expedite this process. Area Managers will be appointed to

manage relationships and to better service the needs of multinationals and large local

corporates.In investment banking team has also been formed to offer specialized services to

major relationships including advisor y and debt syndications (TFCs). Furthermore, to

stem the growth in non-performing loans, the existing risk / credit management

practices at the Bank are being revamped.Treasury / International Banking

deregulation of foreign exchange treasury business has ensured that a growing

u m e o f b u s i n e s s n o w f l o w s t h r o u g h t h e i n t e r - b a n k m a r k e t w h e r e r a t e s a r e

mined by the market forces. This can prove to be an immense profitable

osition for the Bank.

w a r d s t h i s o b j e c t i v e , t h e B a n k i s s h i f t i n g f o c u s i n g o n e x p a n d i n g i t s m a r k e t s h a r e i n

finance, home remittance and foreign investment related forex-denominated

.

9


11/38

Overview of the organization

VisionTo be recognized as a leader and a brand synonymous

with trust, highest standards of service quality,

international best practices and social responsibility.

Mission

NBP will aspire to the values that make NBP truly the Nations 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 stakeholders value.

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

countries where we operate.

Core Values

Highest standards of Integrity.

Institutionalizing teamwork and performance culture.

Excellence in service.

Advancement of skills for tomorrows challenges.

Awareness of social and community responsibility.

Value creation for all stakeholders.

10


12/38

Brief History

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

in1949. 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 then East Pakistan and directed its resources in financing

of jute crop. The Banks 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 acts as the agent to the State Bank of Pakistan

for handling Provincial/Federal Government Receipts and Payments on their behalf.

The Bank has also played an important role in financing the countrys growing trade,

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

finances import/export business to the tune of Rs. 52.7 billion, whereas in 1960

financing under this head was only Rs. 1.54 billion.The Bank has also played an important role in financing the countrys growing trade,

which has expanded through the years as diversification took place.





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

and internationally and representative offices.Bank of the Year 2001: awarded for the year 2001 by the world renown The Banker

magazine owned by the Financial Times Group, London.Bank of the Year 2002: awarded for the year 2002 by the world renown The Banker

magazine owned by the Financial Times Group, London.The Best in the Emerging Markets: Worlds leading financial journal, Global

Finance after a worldwide survey declared NBP in its issue of May 2003 as one of theBest in the Emerging Markets.

The Bankers Magazine in July 2003 recognized NBP as the bank with the highest

return on capital in Asia and No.8 in the world.

In its issue of March 2004, Global Finance has also declared NBP as The Best

Foreign Exchange Bank in Pakistan.

In May 2004, NBPs standard long-term rating was upgraded by JCR-VIS Credit Rating

Agency to AA(double A) from AA- ( double A minus) with stable outlook while

standalone short-term rating was maintained at A-1+ (A one plus). This is now the best

rating for a local commercial bank in Pakistan.

WEBCOP-AASHA, an alliance against gender discrimination at workplace, presented a

Recognition Award to NBP on December 18, 2004 for having a Gender Sensitive

Management.

Bank of the Year award for the year 2004 by the world renowned The Banker

11


13/38

magazine owned by the Financial Times Group, London.

Euromony Magazine, a leading and prestigious journal, published from London, UK,

in its issue of March 2005 has published Moodys Investors Service rankings in which

NBP in the only Pakistani bank which has been ranked among the Top 100 banks of

Asia for it performance in the fiscal year 2003.

Wor lds leading financial journal, Global Finance in an exclusive survey has named

NBP as the Best Emerging Market Bank from Pakistan for the year 2005.On an all Pakistan basis NBP was awarded the Kisan Times Award for the year 2005

by the Prime Minister of Pakistan Mr. Shaukat Aziz, fir its services in the Agriculture

Sector.

Bank of the year awarded for the year 2005 by the world-renowned The Banker

magazine owned by the Financial Times Group, London.

The Banker Magazine in July 2005 recognized NBP as the 10th Best Bank in terms of

Profit on Capital in the world.

On the basis of overall financial performance during 2004, NBP has been listed

Amongst top 1000 banks in the world and Number 1 Bank in Pakistan by the

prestigious Banker magazine in its issue of July 2005.

The Asian Banker, a reputable financial journal, has published the report of its research

project on the ranking of 300 of Asias Strongest banks based on a 11-Dimensional

Dynamic Scoring Criteria has adjudged National Bank of Pakistan as the Strongest

Bank in Pakistan.

Best Bank-Pakistan award for the year 2005 by worlds leading financial journal

Global Finance.

Best Foreign Exchange Bank- Pakistan award for the year 2005 by worlds leading

financial journal Global Finance.

Due to consistent improvement in NBP,s Core Profitability, Asset Quality and Economic

Capitalization in recent years, Moodys Investors service upgraded the Financial

Strength Rating (FSR) rom+ to D-, in November 2005.

Best Foreign Exchange Bank-Pakistan award for the year 2006 by worlds leading

financial journal Global Finance.

Wor lds leading financial journal, Global Finance has named NBP as the Best

Emerging Market Bank from Pakistan for the year 2006.

Best return on Capital for 2006 amongst all banks in Asia Banker magazine in July

2007.Stable AAA/A-1+ (Tipple A/A-One Plus) rating (Standalone Basis) by JCR-VIS (July

2007).

Wor lds Best Foreign Exchange Bank 2008 awarded by worlds leading financial

journal Global finance.

12


14/38

Nature of the OrganizationNational Bank of Pakistan is a Governmental Organization. It is functioning as an

agent of State Bank of Pakistan. It implements the policies of SBP. Its basic objective

was to extend credit to the agriculture sector. It is the major business partner for the

Government of Pakistan with special emphasis on fostering Pakistan's economic

growth through aggressive and balanced lending policies, technologically oriented

products and services offered through its large network of branches. It deals all GovtRevenue, collection and payments of salaries, pensions and Govt Treasury. It is a

complete commercial, retail and corporate bank as well.

National Bank of Pakistan is naturally a Financial Organization, which deals with

lending, and borrowing and investing activities.

The National Bank of Pakistan a commercial bank generally makes advances for a

period not exceeding one year, except in case of small and medium industries for

which advance may be made for a maximum period of five years. The bank makes not

only against the security of stocks and goods hypothecated or pledged to the bank, but

also against documents of goods and properly, shares are various joint stock

companies, Government securities, Insurance policies deposits receipts, etc. The

margin, and rate of interest are determined by several factors including the type of

security the size of loan and the integrity of the party.

The nature of responsibilities of the Bank is different and unique from otherBanks/financial institutions. The Bank acts as the agent to the State Bank of Pakistan

for handling Provincial/Federal Government Receipts and Payments on their behalf.

The Bank has also played an important role in financing the countrys growing trade,

which has expanded through the years as diversification took place.





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

and internationally and representative offices.Business VolumeNational Bank of Pakistans business volume is expanding day by day and now it becomeslargest bank of the country.(Rs. In Millions)

2003 2004 2005 2006 2007Total Assets 468,972 553,231 577,719 635,133 762,194

Deposits 395,492 465,572 463,427 501,872 591,907

Investment 166,196 144,736 156,986 139,947 210,788

Interest Earned 19,452 20,947 33,634 44,014 50,569

Advances 161,266 220,794 268,839 316,110 340,677

Share Holders Equity 18,134 24,900 36,158 53,045 69,271

Pre-Tax Profit 9,009 11,978 19,056 26,311 28,061

After-Tax Profit 4,198 6,195 12,709 17,255 19,034

Earning Per Share (Rs.) 8.53 10.48 17.92 24.01 23.34

Return on Assets

(Per-Tax Profit) 2.0% 2.4% 3.4% 4.3% 4.1%

Number of Branches 1,199 1,226 1,242 1,250 1,254

13


15/38

Product Lines

National Bank of Pakistan serving following product lines:

National Bank of Pakistan Saiban Scheme

National Bank of Pakistan lending for construction of hometo general public as well as employees of government andnon-government institutions. Main features of this scheme are as under.

Finance available for home purchase, home construction, home improvement

and Balance Transfer Facility.

Period of repayment ranges between 30-20 years.

Loan available up to a maximum of Rs. 15-20 million.

NBP provide markup choices to its consumer i.e. Variable Discount Rate,

Fixed Rate. Minimum approval and disbursement timing.

Limited to areas where there are no documentations, fee, resale and

foreclosure related issues, so to protect the banks interest.

NBP Advance Salary Scheme

National Bank of Pakistan facilitates to employees with

advance salary under certain conditions. NBP facilities to employee by 20 Months salaries in advance.

Minimum documents required for advance salaries scheme.

Advance salaries are repayable in 60 months installments.

NBP impose no processing charges, no collaterals and no insurance on

advance salaries.

NBP charged mark-up at 18 percent per annum on reducing balance method.

14


16/38

National Bank Cash Gold Scheme

National Bank provides facility of Rs. 10000 against 10 gms of gold.

No maximum limit of cash.

Roll over facility.

Mark-up 14.50 percent per annum.

Repayable after one year.

No penalty for early repayment.

National Bank Kisan Dost Scheme National Bank of Pakistan lending in agricultural field.

National Bank of Pakistan lending farmers for development of agriculture sector of

the countr y under certain terms and conditions. NBP provide loan to farmers for production, development purposes, for

purchase of tractors, for installation of tube wells, for purchase of agricultural

instruments, micro loan, for construction of godwon, for construction of fish

pond, for development of livestock and farming, for mil processing, for cold

storage, bio-gas plants. NBP charged interest @ 14.5 percent per annum.

NBP lending at farmers doorsteps.

NBP facilitates to farmers with agricultural experts. NBP provide loans against agricultural passbooks, gold ornaments and paper

securities.National Bank Premium Aamdani Certificate Scheme

A monthly income scheme introduced by NationalBank of Pakistan for investors as well as for general public.

Minimum investment required Rs. 50,000/-

Maximum investment allowed Rs. 5,00,000/-

A 5 years scheme with year wise increasing profit rates.

Incentives available for investors.

NBP provide finance facility against these certificates.

NBP allowed to customers to conver t existing deposits intoNational Bank Premium Aamdani Certificates.

NBP Karobar Scheme

National Bank of Pakistan providing financing under President

Karobar Scheme. The purpose of this scheme to reduce unemployment from the

country. Main features are as under. Age limit is 18-45 years.

Finance limit to Rs. 200,000/-.

Tenure of this loan 1-5 years.

Markup rates are variable. i.e. KIBOR +2% per annum. The customers will

pay 6% as long as government provides the balance markup to NBP on

monthly basis. NBPS loan available for: Utility Store, Mobile General Store, Transport,

PCO/Tele-centers.

15


17/38

International Baking

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 FinancialInstitution Wing is: -

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, thereby contributing to the banks

profitability. Generation of incremental trade-finance business and revenues.

NBP offers:

The lowest rates on exports and other international banking products. Access to

different. local commercial banks in international banking.

DEMAND DRAFTS:

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.

MAIL TRANSFERS:

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

offer the most competitive rates in the market.

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.

TRAVELER'S CHEQUES:

Negotiability: Pak Rupees Traveler s Cheques are a negotiable instrument.

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

Availability: At 700 branches of NBP all over the countr y.

Encashment: At all 400 branches of NBP.

Limitation: No limit on purchase.

Safety: NBP Travelers Cheques are the safest way to carr y our money.

LETTER OF CREDIT:

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 then 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.

16


18/38

COMMERCIAL FINANCE:

Let us help make your dreams become a reality. 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 customer s best resource in makingNBPs products and services work for them.

FOREIGN REMITTANCES:

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

Pakistan has taken a number of measures to:

Increase home remittances through the banking system. Meet the SBP

directives/instructions for timely and prompt delivery of remittances to the

beneficiaries

New Features:

The existing system of home remittances has been revised/significantly improved and

well-trained field functionaries are posted to provide efficient and reliable homeremittance services to nonresident Pakistanis at 15 overseas branches of the Bank

besides United National Bank (the joint venture between NBP and UBL in UK)., and

Bank Al-Jazira, Saudi Arabia. Zero Tariff: NBP is providing home remittance services

without any charges. Strict monitoring of the system is done to ensure the highest

possible security.

Special courier services are hired for expeditious delivery of home remittances to the

beneficiaries.

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-PKKA. All NBP overseas branches and overseas correspondents (over

450) are drawing remittances through SWIFT.

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

our business and personal needs.

TRADE FINANCES OTHER BUSINESS LOANS:

AGRICULTURAL FINANCE:

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

who produce some of the best agricultural products in the World.

Agricultural Finance Services:

17


19/38

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:-

Providing reliable infrastructure for agricultural customersHelp farmers utilize funds efficiently to further develop and achieve better production

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

technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term):

Production and development:

Watercourse improvement

Wells

Farm power

Development loans for tea plantation

Fencing

Solar energy

Equipment for sprinklers

Farm Credit:

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

renewal basis.

Operating loans

Land improvement loans

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

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

Production Loans:

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 infor mation, 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 and Post-shipment financing to exporters Running finance Cash Finance

Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-

shipment / Post Shipment Agricultural Production Loans

Medium ter m loans and Capital Expenditure Financing:

NBP provides financing for its clients capital expenditure and other long-term

investment needs. By sharing the risk associated with such long-term investments,18


20/38

NBP expedites clients attempt to upgrade and expand their operation thereby making

possible the fulfillment of our clients vision. This type of long term financing proves

the banks belief in its client's capabilities, and its commitment to the country.

Loan Structuring and Syndication:

National Banks leadership in loan syndicating stems from ability to forge strong

relationships not only with borrowers but also with bank investors. Because we

understand our syndicate partners asset criteria, we help borrowers meet substantial

financing needs by enabling them to reach the banks most interested in lending totheir particular industr y, geographic location and structure through syndicated debt

offerings. Our syndication capabilities are complemented by our own capital strength

and by industry teams, who bring specialized knowledge to the structure of a

transaction.

Cash Management Services:

With National Banks Cash Management Services (in process of being set up), the

customer s sales collection will be channeled through vast network of NBP branched

spread across the countr y. This will enable the customer to manage their companys

total financial position right from your desktop computer. They will also be able to

take advantage of our outstanding range of payment, ejection, liquidity and

investment services. In fact, with NBP, youll be provided everything, which takes to

manage your cash flow more accurately.

SHORT TERM INVESTMENTS:

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

attractive, along with the security and service only NBP can provide.

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 marketIntroduction 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.

19


21/38

CompetitorsCompetitors of National Bank of Pakistan are all scheduled banks, which are

listed/trading under Banking Companies Ordinance 1962.

Competitive Banks are as under: Habib Bank Limited

United Bank Limited

Muslim Commercial Bank Limited

Allied Bank Limited

Askari Commercial Bank Limited

Soneri Bank Limited

Bank Al-Habib Limited

Bank Al-Falah Limited.

Standard Chartered Bank Limited & The Bank of Punjab

Organizational structure

Organizational Hierarchy Chart

PRESIDENT

DIRECTORS / SEVPS

Provisional Chiefs / EVP

Regional Chiefs / EVP

Zonal Chiefs / SVP

Voice President

Assistant Voice President

Officer Grad I, II, III

Clerical / Non-Clerical Staff

20


22/38

Syed Ali Raza

President & Chairman

Sikandar Hayat Jamal Azam Farooque Mian Kausar Hameed Ibrar A. Mumtaz

Director Director Director Director

Tariq Kirmani M. Arshad Ch. M.Ayub Khan Tarin Akhlaque Ahmad

Director Director Director Director

21


23/38

www.vu39.comSpan of Control

Span of control is the number of subordinates who report directly to a specific

manager.

There are three types of branch categories i.e. I, II, & III in National Bank of Pakistan.Category I Branches: Four employees report to their branch manager.Category II Branches: Eleven employees report to their branch manager.

Category III Branches: Fifteen employees report to their branch manager.At branches level there is broader span of control but due to tall structure of the

organization we find narrow span of control in the bank.

Number of employees

D e s c r i p t i o n 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0

5 2 0 0 6 2 0 0 7T o t a l E m p l o y e e s 1 2 1 9 5 1 3 2 7 2 1 3 7 4 5 1 3 8 2 4 1 4 0 1 9 1 5 0 1

9

Main OfficesAudit Committee

Chair man Azam Faruque

Ibrar A. MumtazMian Kausar Hameed

Auditors

Chartered Accountants Ford Rhodes Sidat Hyder & Co.

Chartered Accountants M. Yousaf Adil Saleem & Co.

Legal Advisors

Advocates & Legal Consultants Mandviwala & Zafar

Registered & Head Office

NBP BuildingI.I. Chundrigar Road, Karachi

Pakistan

Registrars & Share Registration Office

THK Associates (Pvt.) LimitedShares Department, Ground Floor,

Modern Motors House,Beaumont Road,

Karachi, Pakistan

22


24/38

Websitewww.nbp.com.pk

Branches

National Level

Description 2002 2003 2004 2005 2006

Total Branches 1204 1199 1226 1242 1250

International Level

15 Branches

Plan of your internship program

Introduction of Branch

Name of Branch National Bank of Pakistan,

Main Branch Mailsi Distt.Vehari.

Branch Code 0497Region MultanRegion Code 08Address Quaid- e-Azam Road Mailsi

Tehsil Mailsi District Vehari.

Phone No. 067-410318, 067-411918Fax No. 067-410318Name of Manager Rana Muhammad Anwer Name of My Supervisor Ch. Ikram Ullah

Number of employees 12

Starting and ending dates of internship

Starting Date 25-12-2007

Ending Date 24.02.2008.

23


25/38

Departments of Training

During the internship period of 8 weeks I got training in various departments in the

branch. A brief introduction of these departments is as under:Deposit of Current and PLS Saving Accounts & Account Opening (2 Weeks)

Remittances and Bills (2 Weeks)Govt. Payments and Receipts (2 Weeks)

Advances (2 Weeks)

Training program

Introduction of all the departments

There are many different departments in National Bank of Pakistan:

i) Deposit

Customers keep their savings in PLS Saving Accounts and businessmen save their

money in bank Current Accounts. NBP gives profit on saving accounts and special

saving accounts i.e. Premium Saving Accounts and NBP Premium Amadni

Certificates for one to five year s period.

ii) Advances (Credit department)

NBP give loans to the borrowers for different purposes. These loans are given for

various sectors for different periods. Small Finance, Cash Finance, Agriculture

Finance, Cash & Gold Loan, Personal Loans, Demand Finance, Running Finance,

Corporate Finance, Export Import Financing, House Building Finance (Saiban) and

NBP Karobar Scheme etc.

iii) Government Payments

National Bank of Pakistan is functioning as an agent of SBP. All types of Government

Payment i.e. Pension, Salaries, Grants, Zakat, Benevolent Fund, Treasury Refund and

Taxes Refund proceed through the bank.

iv) Government Receipts

In this department all types of Government receipts i.e. Revenues, Taxes, Abyana,

Agriculture Tax, Government Fees, EOBI Funds and Utility Bills are deposited. This

way NBP is serving great job of revenue collection.

24


26/38

v) Remittances

Another important department in the bank is remittances. People send their money to

the other persons and organizations through various way i.e. Bank draft, Telegraphic

Transfer, Mail Transfer, Coupons, Govt. Draft and Western Union Money Transfer

etc. It works both inward and outward.vi) Bills

Customers collect their money/amount through bills. They present their cheques,

drafts and other bills for collection within the city and out of the city through mail.

Now a days Online Banking is becoming more popular for this purpose but the branch

where I got training is still not have this facility.

vii) Cash Department

National bank deals Government treasury on behalf of State Bank of Pakistan. There

are Chest, Sub-chest and Non-chest branches in the bank. SBP supplies currency

notes to the bank and monitors its cash flow. Cash In charge and other cashiers deal

with cash receipt and payment in the bank.

viii) Compliance

Role of branch compliance department is to reconcile the prescribed frequencies,

investigate long pending reconciliation item, and ensure correct treatment every half-

year and clearing system service branch-in major cities. Internal control is the

integration of the activities, plans, attitudes, policies and efforts of the people of the

bank working together to provide reasonable assurance that the organization will

achieve its objectives and mission.

ix) Agriculture Department

Agriculture Credit Department is playing a vital role in development the economy of

Pakistan. Commercial banks being the greatest mobilizer of savings in the country

with their large network of branches play important role in financing agriculture. The

National Bank of Pakistan has also been tr ying to ensure that loans are disbursed to

genuine agriculturists within a reasonable time and that the bank turns down no viableloan request.

ix) Human Resources Management

Human Resources Management Department works for the betterment of the

employees. Enhances skills, training management, service benefits, wages, medical

facilities, staff loans are basic functions of this department.

x) Information Technology Department

Banks data collection and information system run by Regional Data Collection

Center. This department manages staff training programs regarding computer.

25


27/38

xi) Online Banking

This department is functioning only in online branches in the bank. This is a fast track

banking system in modern banking. NBP is also trying to enhance this facility for

their customers.

xi) Retail & Comm ercial

This is the department that boosts the profitability of the bank. National Bank

becomes the largest profit-earning bank of the country by introducing personal loans

i.e. NBP Advance Salary Scheme and Saiban Scheme.

xii) FBR Collection Department

NBP is playing great role for collection of FBR (CBR) taxes/revenue. A separate

counter is established at branch level to facilitate the taxpayers.

xiv) Islamic Banking

The year 2007 marked the first year of Islamic banking operations. During the

year under review, in addition to active participation in various Sukuk transactions,two more Islamic banking branches at Lahore and Peshawar started operations.

NBPs plans for the year 2008 include opening of Faisalabad and Rawalpindi branches

with the focus on growing organically by opening more standalone Islamic banking

branches, utilizing NBPs existing branch network of 1,200 plus conventional

branches and looking into strategic acquisitions for expansion in this field

Detail of the Departments I Worked In

i) Deposit of Current and PLS Saving Accounts & Account Opening:

All banks depend on deposits. It is a very important department where customers

deposit and withdrawal their money. Banks use this money for loaning on higher rate

to earn profit.

Account opening is also very vital now a days in banking system due to KYC (Knowyour customer) , AML (Anti Money Laundering) and ATF (Anti terrorist financing)

because ANL has become a global problem and all the countries of the world are

vulnerable to it.

I got training in this department for two weeks and after understand the basic concept

I practically opened account of walk-in-customers.

ii) Remittances and Bills

26


28/38

Another important department in the bank is remittances and Bills for Collection.

People send their money to the other persons and organizations through various way

i.e. Bank draft, Telegraphic Transfer, Mail Transfer, Coupons, Govt. Draft and

Western Union Money Transfer etc. It works both inward and outward.

Customers collect their money/amount through bills. They present their cheques,

drafts and other bills for collection within the city and out of the city through mail.

Now a days Online Banking is becoming more popular for this purpose but the branchwhere I got training is still not have this facility.

iii) Government receipt and Payment

In this department all types of Government receipts i.e. Revenues, Taxes, Abyana,

Agriculture Tax, Government Fees, EOBI Funds and Utility Bills are deposited. This

way NBP is serving great job of revenue collection.

Another important department in the bank is remittances. People send their money to

the other persons and organizations through various way i.e. Bank draft, Telegraphic

Transfer, Mail Transfer, Coupons, Govt. Draft and Western Union Money Transfer

etc. It works both inward and outward.

iv) Credit Department

NBP give loans to the borrowers for different purposes. These loans are given for

various sectors for different periods. Small Finance, Cash Finance, Agriculture

Finance, Cash & Gold Loan, Personal Loans, Demand Finance, Running Finance,

Corporate Finance, Export Import Financing, House Building Finance (Saiban) and

NBP Karobar Scheme etc. The National Bank of Pakistan has also been trying to

ensure that loans are disbursed to genuine agriculturists within a reasonable time and

that the bank turns down no viable loan request.

Retail and Commercial wing enhanced the profitability of the bank. National Bank

became the largest profit-earning bank of the country by introducing personal loans

i.e. NBP Advance Salary Scheme and Saiban Scheme.

27


29/38

Structure of Finance Department

Department Hierarchy

Finance Director

Accounts Officer

Assistant Accounts Officer

Numbers of Employee

Total No. of Employees are 02 in Finance Department

Finance and Accounting Operations

Finance and Accounting operations are operated with the help of

subordinate staff. Bank is financing in multiple sectors.

Functions of the Finance Department

Finance Department performs following functions.

Borrowing from State Bank of Pakistan.

Lending to Commercial Banks

Lending to Investors.

Lending to General Public for multi-business.

Accounting system of the organization

Accounting system of the bank especially where I done internship is very bad due to

non-availability of Information Technology trained staff which is most requirement of

the bank. Bank use manually accounting system during its operational activities.

Finance system of the organization

Financial system of the bank where I done my internship is mixed and complicated

because being government bank, bank deals with all kind of lending and investing

activities and also hold down the cash position of others financial institutions i.e. banks

like MCB, UBL, ABL etc.

Use of electronic data in decision- making

There is lack of use of electronic data in decision making being a operational branch of

the bank all the decisions make by higher offices i.e. Regional Office or Head Office and

this branch only act upon on the order received from high command.

28


30/38

Mobilization of f unds.

The branch where I have got training, is mobilizing his fund through lending or

receiving only. Branch provides various kind of lending facilities all kind of as stated

above in product line.

Generation of funds

Fund generation of the branch is depositing, receiving interest on lending money to

various sectors, advances from other financial institutions.

Sources of funds

Fund generation of the branch is depositing, receiving interest on lending money to

various sectors, advances from other financial institutions.

Allocation of funds

Bank allocates funds according to the instructions of the high command.

Critical analysis

Financial Analysis

Pre tax profit stood at Rs. 12,674 million from Rs. 14,002 million of corresponding

period of last year, a reduction of 9.5%. Banks operating performance have been

quite impressive, operating revenue increased by 30% from Rs. 20376 million to

Rs.26,497 million, while pre provision profit increased by Rs. 4,293 million an

increase of 31.4%. Diluted earning per share declined to Rs. 8.79 from Rs. 10.05

during the same period of last year. Pre tax return on equity stands at 35.8% whereas

Pre tax return on assets is at 3.3%. Cost to income ratio of the bank remained in the

top tier at 0.32

Net interest margin register ed an impressive growth of Rs. 2,670 million or 16.4%

mainly due to growth in volumes. Net advances increased by Rs. 41 billion and Rs. 32

billion as compared to corresponding period of last year and year end 2007. Thegrowth in advances mainly emanated from corporate and commodity financing.

Deposits show impressive growth of Rs. 68 billion or 12.3% over corresponding

period last year. Compared to year end December 2007 the deposits have increased by

Rs. 29 billion or 5% mainly due to our marketing efforts and the trust that customers

have in NBP.

Non interest base income has shown an impressive increase of Rs. 3.4 billion or 84%

over corresponding period due to higher commission, exchange income and a one off

receipt of Rs. 977.8 million as compensation for delayed tax refunds. The

compensation on delayed refunds pertains to various assessment years from 1991-92

to 2001-02.

Administrative expenses show a rise of Rs. 1,828 million or 27% compare to

corresponding period mainly due to inflation and salary increases. Going forward we

expect that with the technological / human resource up gradation program our costs

29


31/38

will rise in short term however we need to invest today for better returns in the future.

Provision charge against advances for the corresponding period last year includes a)

one off items of Rs. 1.4billion on account of one large cash recovery and reversal in

general provision of Rs. 825 million due to reduction in provision requirement on

advance salar y from 5% to 3%. If we exclude these one offs the provision charge last

year comes to Rs. 1.8 billion. Further b) last year the SBP changed its prudential

regulations and withdrew the benefit of Forced Sales Value in the third quarter of last

year, therefore this year the banks can no longer take the benefit of forced sales valueof the collateral securities. The additional provision charge on account of withdrawal

of FSV impact last year was Rs. 3.1 billion, which was made in the 3rd and 4th

quarter of last year. This benefit of Rs 3.1 billion was being carried in the first half of

2007. Therefore the comparison between the provisions for the two periods should

take into account both these factors. Additionally the bank is making all out efforts for

recovery of non-performing loans and aggressive targets have been assigned to the

units.

We extend our appreciation to the banks staff for their commitment, dedication and

hard work in achieving these excellent results. We would like to express our

appreciation to our stakeholders, regulators and our valued customers for their support

and continued confidence in NBP.

On behalf of Board of Directors

S. Ali RazaChairman & PresidentDate: August 25, 2008

Others Issue

During the internship I got practical experience that does not meet the theoretical

concepts in MBA Program. I present here some critical analysis:

Long Process of Transaction: There are long processes for making a transaction in the

Bank. Especially, during the salary days of Government employees, a customer needs

one or two hours to withdrawal his/her cheque.

Training: NBP has no great facility for their employees for training of new

technologies. This situation creates difficulty for handling new challenge.

Departmentalization: I hardly saw any separate department in the branch where I have

got internship accept cash department. An employee deals various nature of work.Staff Attitude: Due to heavy load of work staff attitude does not ideal for an

organization where public dealing is at large scale.

Work Environment: Work environment was not ideal due to heavy customers visit in a

single day. Furniture, temperature, light and sitting arrangement was not good for

customers and bank employees.

Professional Approach: Work specialization and job specification are found very low

in banks employees. Business administration qualities and education is at low side.

Shortage of Staff: There is shortage of staff in the Bank. Number of customer per

employee is very high. Cash department is suffering very badly and facing great deal

of over workload.

Less use of Technologies: Staff hesitate to use new technologies. Even old employees

are not able to operate PCs.

30


32/38

Communication Gap: I feel that there is communication gap between top management

and workers. They have fewer chances to communicate effectively.

Not Focusing on Mission and Objectives: Employees just work and work hard as a

routine. They do not know what is the mission ahead and their objectives are also not

cr ystal clear.

Unjustif ied Appraisal Criteria: No justified appraisal criteria are implemented for

annual increase in salary and promotion of staff. It creates un-satisfaction among the

employees of the Bank.Undemocratic Decision Making: I observed that some times employees are not

involved in decision-making process. Manager himself takes decision and orders to

make changes.

Standard Procedure not adapted: In theory, standard procedures for practice and

process of transaction are forced to avoid fraud and forgery but I observed that

standard procedure manual volume I, II and III is ignored.

Ratio Analysis

Net Profit Margin:

This ratio measures the firms profitability of sales/ interest earned after taking

account of all expenses and income taxes. This ratio can be calculated as:

Net profit margin ration = Net Profit after taxes / interest earned

2005 2006 2007

Net Profit Ratio 12709/33634 X 100 17255/44014 X 100 19037/50569 X 100

37.78% 39.20% 37.64%

Explanation: from the calculation it is very much clear that the performance of NBP is

ver y good. And the trend is upward. It tells us a fir ms net income per rupee of

revenue. As the trend is upward it shows the high profits in revenue per rupee in case

of NBP. It is because of high advances the NBP has given to the people.

Return on Equity:

Dividing profit after taxation by shareholder s equity. ROE compares net profit after

taxes to the Shareholders Equity.

This ratio is calculated as:

ROE=Profit after taxes/Share holder s Equity

31


33/38

2005 2006 2007

ROE 12709/36158 X 100 17255/53045 X 100 19037/69271 X 100

35.14% 32.53% 27.48%

Return On Assets:

This ratio shows the efficiency of organization that how efficiently utilizes their

assets. This ratio relates profits to assets.

It is calculated as: ROA = Profit after Tax/Total Assets

2005 2006 2007

ROA 12709/577719 X 100 17255/635133 X 100 19037/762194 X 100

2.19% 2.71% 2.49%

From calculation it is clear that this ration of NBP is increasing. It shows that NBP

using its assets very efficiently. That is why they are earning ver y high profits. Thisshows that how efficiently they investing the assets thats why they are earning high

profits.

Investm ent deposit Ratio:

This ratio shows the comparison of investments and deposits. This is calculated as.

Investment deposit Ratio=Investment/deposits

2005 2006 2007

Return on156986/463427 X 100 139947/501872 X 100 210788/591907 X 100Investment

33.87% 27.88% 35.61%

Advances deposit Ratio:

This ratio show that how much efficiently the bank advances the deposits of their

customer to borrower.

It is calculated as.

Advances deposit ratio = Advances/ deposit

32


34/38

2005 2006 2007

AdvancesDeposit 268839/463427 X 100 316110/501872 X 100 340677/591907 X 100Ratio

58.01% 62.98% 57.56%

From above table it is clear that the ratio is going high. Which means the efficiency on

NBP is good and they use their deposits efficiently in advancing to borrowers. Here

high ratio is required. The next side of the picture is that the people will think that is

risky to deposit the money in the bank.

33


35/38

SWOT Analysis of the organization

Strength Declared Worlds best Foreign Exchange bank in 2008

Stable AAA/A-1+ (Tipple A/a-One Plus) rated bank

Best Return on Capital Bank for 2006 amongst all the banks in Asia

Highest Profitability bank of Pakistan 10 the Best Bank in terms of Profit on Capital in the world

Having Highest Assets and Capital in Pakistan

Functioning as an agent of State Bank of Pakistan

Dealing Government Treasury where SBP has not its own branch

Having unshakable trust of the public and its stakeholders

Giving Loans alone in the market against Gold Ornaments

Performing social responsibilities and claiming The Nations Bank

Disbursing Salaries and Pensions to the Government employees and earning

high profit on NBP-Advance Salary Loan Scheme Earning commission from SBP on Government transaction

Facing never problem of cash/currency being its Chest and Sub-chest

Branches all over the countr y

NBP have presence in the countries having sizeable trade volumes withPakistan by its overseas operations

Holds largest deposit base in the market share in terms of number of accounts

Leading bank in agriculture financing amongst commercial banks with themarket share of 15%

Helping in earning of foreign exchange, remittances and leading agent of

Western Union Money Transfer

SBP rated Fair for capital & human resources, Strong for assets, Fair formanagement and Satisfactory for both earning (Rs.24.1 for per share) and

liquidity

Weakness

Lowest Internal Control and Compliance System, SBP rated Marginal whichis alarming for the Bank

Unsatisfactory corporate culture of the Bank

Physical environment and atmosphere compare to other banks is not meet the

standard Less number of Online Branches

Ineffectively use of technologies i.e. Information technology

Shortage of staff- per employee customer is very high side

Technical education and training of staff is insufficient

34


36/38

Opportunities

Being a Government Bank NBP having wide scope in economic market.

Trust and reliability creates chances to enhance deposit and profitability.

Its vast network of domestic and overseas branches can help to expand

business. Banks deposit is increasing rapidly so there is a great opportunity to enhance

its investment and financing.

Being an agent of State Bank of Pakistan it can play vital role in local

economy. Earning commission/exchange on Government transactions.

Threats SBP penalties due to low internal control and compliance.

Government, SBP and Prudential Rules and Regulations.

Schedule banks and Multinational/International banks profit rates. Its staff switching over to other private banks due to more facilities.

Other banks char ming atmosphere and relaxation in documentation.

SBP rated just Marginal in respect of System & Control which is alarming

for the Bank to survive its license.

NBP staff code of ethics and practices.

High number of complaints regarding staff behavior.

Government Schemes, Government Revenue Collection, Government.

Payments and FBR Collections create heavy workload.

35


37/38

Conclusion & recommendations

In my opinion the process of a transaction should be short in order in savetime for both customers and the bank.

Staff strength should be enhanced and professional qualif ied persons should be

recruited.

It is recommended that proper training be provided to the staff members thatwill ultimately increase the performance of Bank over all.

It is suggested that promotion be given to the staff in due time and on the basis

of perfor mance to provide job satisfaction.

The bank should spend more on renovation of the branches to improveenvironment and atmosphere to attract the customers.

Sitting arrangement, air conditioning and new furniture should be facilitated

The Bank should introduce the computers software to cope the heavy load ofwork and better control.

Extra counters should be established in order to facilitate during the rush days

the difficulties faced by the bank staff as well as the customers.

All Branches of the Bank must be online.

All the departments should be established separately.

Bank can increase its profit ratio by reducing extra expenditures and to enhance

the volume of advanced especially retail loans. I done internship, I recommend that security level in the bank should be

enhanced especially where I got internship and operation of Mobile phones must

not be allowed inside the Bank.

Bank should take step to establish separate counters for the old age employeesand pensioners.

The Bank should locate new market for its operational activities in the country as

well as abroad. The Bank should increase profit rate on deposits and saving schemes

especially for pensioners and old age citizens.

For improvement of internal control and system the compliance wing and

surprise inspection system should work more effectively. To avoid complaints and leaving the bank job number of staff should be

enhanced and their salaries should be leveled to the private/multinationalbanks.

Double shift system should be introduced to improve attitude and behavior ofthe employees.

Payment of salaries and pensions should be made separately to accommodate

the valued customers and depositors. For collection of utility bills i.e. Electricity bills, Telephone bills, Water and

Gas bills separate cash receipt counter must be established.

Procedure of receiving loans should be easy and short time to facilitate the

borrowers and enhance the profitability of the Bank.

36


38/38

References

1. Website of the Bank i.e. www.nbp.com.pk

2. Economic Bulletin, Vol. 34, No.5 September October 2007, publishedbi-monthly by Economic Research Wing, National Bank of Pakistan.

3. Economic Bulletin, March-June 2008, published bi-monthly byEconomic Research Wing, National Bank of Pakistan.

4. NBP News lines, National Bank of Pakistans Newsletter January 2008.

5. NBP News lines, National Bank of Pakistans Newsletter May/June,2008.

6. NBP News lines, National Bank of Pakistans Newsletter July/August,2008.

7. NBP News lines, National Bank of Pakistans NewsletterSeptember/October, 2008.

8. Management Brief, January 2008 published by Human ResourcesManagement and administration Group, National Bank of Pakistan Head

Office Karachi.

9. Management Brief, March 2008 published by Human ResourcesManagement and administration Group, National Bank of Pakistan

Head Office Karachi.

10. Management Brief, June 2008 published by Human ResourcesManagement and administration Group, National Bank of Pakistan


11. Management Brief, August, 2008 published by Human ResourcesManagement and administration Group, National Bank of Pakistan


12. Financials-Half Yearly Account June 30, 2008.

13. Economic Indicators Pakistan, Januar y 2008 published by EconomicResearch Wing, Credit Management Group, NBP Head Office Karachi.

14. Annual Report 2007, published by NBP, Head Office Karachi.

15. Brochure- NBP Awards & Achievements.

16. Brochure- NBP Kisan Dost.

Annexes

37

Brochure- NBP Awards & Achievements.

Brochure- NBP Kisan Dost.

38

internship report on nbp for finance studen enc

Documents