nib internship report

An Internship Report on Banking Sector, Focus on NIB Bank Limited

PURPOSE OF STUDY

It is necessary for the students of Master that they should be acquainted with the

practical applications of their studies and should gain experiences. In this

connection every student is required to undergo a practical work known as

“Research Monograph” study in any specific topic of a field in any organization.

The main purpose of this study is to fulfill the practical requirement of the

Masters of Business Administration degree.

This study offers practical knowledge and experiences of courses studied.

To write whole experience in a systemic and in an organized way under

the supervision of learned teachers and professors.

To improve the writing and analytical skills among the students.

Research Monograph Muhammad Faraz Ali Khan1


INTRODUCTION



This Research Monograph examines the general impact of Information Technology (IT)

on the banking industry. The banking industry has introduced various new customer

services and products using IT. The banking industry has gone through many changes as

a result of the introduction of IT. In fact, the structure of the industry is continuously

changing because of rapid development of IT. The continued success of IT applications

means that the limitations of current IT computer systems in banks have to be reboust.1

In the research, the banking industry has demonstrated a fair amount of competence in

the application of IT. Some banks were at the cutting edge of IT and have a clear vision

of how IT could be furthered applied successfully. Banks have spent millions of rupees

on IT every year in a bid to fully automate its operations and services to customers. The

industry recognizes that IT was a major key to its development.

The research brought to light the fact that IT has increased competition within the

industry. The realizations that the market size is not really increasing has made banks

more competitive. Also, the expectation of their customers is very high and in response

banks using IT to satisfy the demand for quality services and products. However, there is

an increasing outside threat to the banking industry from the non-banking sector.

Deregulation of the banking industry has introduced more competition but the low cost of

computer technology has made it easier to enter the industry. Non-banks can now pick up

off the shelf IT solutions for the services they want to provide.

The research reveals that traditional banks find it difficult to integrate new computer

technology with their old systems. As a result, their IT costs are higher than expected and

IT integration takes to much time.

1.1 INTRODUCTION TO BANKING

1



Banking as a system arose simultaneously with the use of notes. Notes have

come into use in the seventeenth century in England when many people held

heir wealth in gold. During the civil war, people were frightened of being robbed

so they had to look for someone who had a safe vault for his own business and

then to ask him to keep their gold in his safe. The obvious choice was the local

goldsmith who had a safe vault available in which he kept his gold coins and

bullion (Bullion is the name of given to uncoined refined gold and silver, generally

in the shape of bars of bricks). So it came about that goldsmith took these

deposit for safe keeping on charge of a fee and issued a receipt which

acknowledge the deposit of money and incorporated a promise to return it on

demand. More and more people came to hold these receipts. Thus, the original

purpose of the receipt became obscure as its function as promissory note – a

note which promises to pay – became all important. In time people stopped

calling them receipts and began to describe them as “notes”. Thus, the

goldsmiths emerged the first banks.

1.2 ETYMOLOGY



It has not so far been decided as to how the word ‘Bank’ originated. Some

authors opine that this word is derived from the words ‘Bancus’ or ‘Banque’ which

mean a bench.

Other authorities hold the opinion that the word ‘Bank’ which means ‘joint stock

fund’. Later on, when the Germans occupied major part of Italy, the word ‘Back’

was Italianized into ‘Bank’.

It is, therefore, not possible to decide as to which of the opinions is correct, for no

record is available to ascertain the validity of any of the opinions. (Practice and

Law of Banking in Pakistan)

Banking is indicated as primitive as human society for ever since men came to

realize the importance of money as medium of exchange.

Today the word ‘Bank’ is used as comprehensive term for a number of

institutions carrying on certain kinds of financial business. In practice the word

‘Bank’ means, this borrows money from one class of people and lends to another

class of people for interest / Profit.

1.3 TYPES OF BANKS



Primarily all banks gather temporarily idle money for the purpose of lending to

others and investments which bring gain in the form of return, profit and

dividends etc. However, due to the variety of resources of money and the

diversity in lending and investment operations, banks have been placed in

various categories, such as commercial banks. Saving Banks, Merchants Banks,

Mortgage Banks, Consumer Banks, Investment Bank, Development Banks,

Cooperative Banks and Central Banks.

1.4 COMMERCIAL BANKS

The commercial banks receive deposits from the general public which are

repayable on demand upon written orders of the depositors. As their most

distinctive feature the commercial banks maintain checking accounts for the

constituents.

The commercial banks are also distinguished for providing short term finance to

trade, commerce and industry to enable these sectors to expand their productive

activities.

1.5 MERCHANT BANKS



Merchant banks are those which have been mainly financing the domestic and

international trade in United Kingdom. During the late eighteenth and early

nineteenth centuries the trade between countries was financed by bills of

exchange by well reputed merchant houses for which they would charge a

commission for their service. Thus the business of accepting bills of exchange to

finance the trade developed and gradually these business houses entered into

other banking activities and become known as “merchant banks”.

Since all the commercial banks, in addition to other banking functions, also deal

in trade financing, the term’ merchant banks’ has gradually faded away.

1.6 SAVING BANKS

The basic purpose of these banks is to inculcate the habit of saving in the

people. The saving bank deposits are not repayable upon only the written orders

of the depositor but the depositor or his agent has to appear personally at the

saving bank to make withdrawal, and for this purpose he must present a pass

book, a certificate of deposit or some similar documents to prove his right to

receive payment. Post Office Saving Banks and Saving Account at National

Saving Organization are well known operational Saving Banks in Pakistan.

1.7 MORTGAGE BANKS

These banks mainly deal in loans for the acquisition or construction or real estate

against the security of mortgages. Quite a few such banks are operating in

developed part of the world. Saving and loans associations and farm-loan

associations are some of the well known forms of the mortgage banks.



1.8 CONSUMER BANKS

These banks provide finance for purchasing consumption goods for the use of

the borrowers. Consumer finance companies, sales finance companies and

credit unions are some of the popular forms of consumer banks.

1.9 INVESTMENT BANKS

The investment banks assist business houses and the governmental bodies to

raise money through the sale of stock and bonds for usually long term purposes.

These banks perform the usual functions of raising deposits of idle money from

the public and finance the business houses and other bodies.

1.10 DEVELOPMENT BANKS

These banks have been established to provide long term development finance to

the trade, commerce and industry. In Pakistan they are generally government

owned banks, established under a specially promulgated law. Zarai Taraqiati

Bank Ltd. and Industrial Development Bank of Pakistan is every well-known

developments bank.

1.11 COOPERATIVE BANKS

These are the banks established and registered as a cooperative venture to

provide banking facilities to the members of the cooperative. In Pakistan, the

Federal Bank of Cooperatives is well known such bank.



1.12 CENTRAL BANKS

Central banks occupy unique position in the banking structure of a country

because they have been entrusted with the responsibility of controlling the

money supply, interest rates and financial market of the country for the purpose

of economic development.

State Bank of Pakistan, Bank of England and Federal Reserve Bank of U.S.A.

are well known central banks. (Practice and Law of Banking in Pakistan).

1.13 ORIGIN OF BANKING SYSTEM IN PAKISTAN

At the time of Independence, the areas which now constitute Pakistan were

producing only food grains and agricultural raw material for Indo-Pakistan

subcontinent. There were practically no industries, and whatever raw material

was produced was being exported from these areas. However, commercial

banking facilities were provided fairly well here.

The history of banking system in Pakistan dates back to independence of

Pakistan in August 1947, when various banks transferred their Head quarters

and funds to areas likely to fall in India. This trend emerged due to dominate rule

of Hindus in pre partitioned Indian Banking system. There were 3496 branches of

Indian scheduled banks in the undivided sub-continent as on 1st March 1947, out

of which only 487 branches were located in areas presently constituting Pakistan.

However, the number of branches of schedule banks drastically declined to 195

from 487 immediately after partition. At the time of partition, there were only two

banks having the honor to the first commercial banks of Pakistan, namely Habib

Bank Ltd, which was setup in 1941 with its Head in India and Australia Bank Ltd.,

which was established in 1944 with its Head office in Pakistan. Following the

partition, an expert committee was setup and this committee recommended that

the reserved bank of India being the Central bank of undivided India should



continue to function as Central Bank of Pakistan and the Indian Currency notes

would continue to be legal tender in Pakistan till 30th September 1948.

Subsequently it was decided to have separate central banks and the State Bank

of Pakistan (SBP) was setup and started functioning from 1st July 1948. Thus the

History of banking system in Pakistan started with the established of the (SBP)

was inaugurated by Quid0e-Azam Muhammad Ali Jinnah on 1st July 1948.

Consequently, three banks were established which include Muslim Commercial

Bank formed in September 1948, Bank of Bhawalpur in October 1948 and

National Bank of Pakistan in 1949. Habib Bank also transferred its Head office

from Bombay to Karachi, due to portioned in August 1947, and it was assisted by

SBP to finance domestic trade of country. The number of Pakistan scheduled

remained unchanged up to five till 1955. The State Bank allowed the bigger

banks to open any number of branches. By the end of December 1973, the total

number of Pakistani scheduled banks increased to 13. After the nationalization of

commercial banks in 1974, five major banks emerged to be main commercial

banks, branches exceeded 6700 in 1985. In early 1990’s the Government of

Pakistan has also established First Women Bank to encourage women for

making saving and investments, to provide them more job opportunities and to

seek their active partition in the development of national economy. In the hope

that banking would enter a new era of further development and progress, Banks

Nationalization Act, 1974, was promulgated and Pakistani Commercial banks

were nationalized in Pakistan since January 01, 1974. It has now been realized

that this step has proved counter productive, hence reversal has been initiated

since January 1991, after amending the relevant laws. Besides disinvestment

and privatization of nationalized commercial banks, establishment of commercial

and other banks in private sector has also been encouraged. Consequently, a

large number of commercial and other banks have come into operation since

1992, in private sector, offering competitive prompt, as also courteous and

efficient service to the constituents.



A new concept of interest free banking was introduced in 1981 and by now it has

been established on sound footing, and new trends and techniques are being

implemented to make this system result oriented.

Electronic banking and several other new services like ATM, SWIFT Transfers,

Credit and Charge Cards etc, have been made available and their systematic

consumption is making Pakistani banking comparable to their several modern

counterparts anywhere in the developed world.

December 27, 1993 as a public limited companies ordinance, 1984 and received

license from the State Bank of Pakistan to undertake and carry on the business

of Banking in Pakistan on April 3, 1994.



INTRODUCTION OF NIB BANK LTD



2.1 HISTORY OF NIB BANK LIMITED

NIB Bank is fastest growing financial power house in Pakistan. NIB Bank Limited

was incorporated in March – 2003 as a Public Limited Company. In October –

2003, all assets and liabilities and all rights and obligations of the former National

Development Leasing Corporation (NDLC) – One of the leading leasing company

in Pakistan and Pakistan operation of IFIC Bank of Bangladesh were

amalgamated with and into NIB Bank Ltd.

In April – 2004, NIB Bank also acquired the Pakistan operations of Credit

Agricole Indosuez.

The growth story of NIB Bank is a unique one. In a short span of four years, NIB

Bank is proudly serving nearly half a million customers through wide distribution

footprint across more than 60 small and large cities of Pakistan.

Becoming the 7th largest bank in Pakistan is just one dimension of our growth

story. The commitment of NIB Bank’s share holder can also be gauged through

its enormous paid-up capital of our Rs.40.000 Billion, First larges paid up capital

in Pakistan banking industry. Clearly these are the reasons for your confidence in

banks robustness. The majority shareholder is with Temasek Holdings of

Singapore.

The NIB Bank Ltd. acquire majority share holding of PICIC and full control of

PCBL in June 2007. NIB Banks acquisition of PICIC is one of the largest foreign

investment in Pakistan banking industry and great milestone in local financial

sector. Principal share holding of NIB Bank will continue to be with Temasek

Holding Investment arm of Government of Singapore.

Since 1st of January 2008 NIB Bank Limited providing its services in financial

sector as “One Bank One Team” with all operations of PCBL and PICIC Merged

under NIB Bank Limited as a 7th largest bank in Pakistan along with

240 Branches, 450,000 Customers, Rs.197 Billion Total Assets, Rs.40.000 Billion

Paid-up Capital.



2.2 WHAT IS TEMASEK HOLDING

A Temasek holding is the investment arm of the Government of Singapore which

owns and manages Singapore Government’s diversified direct investments in

Singapore and overseas worth over US$ 134 Billion. It is rated ‘AAA’ by Standard

& Poor and ‘Aaa’ by Moody’s.

Temasek Holdings is a major shareholder in companies ranging from banking

and financial services to ports, shipping and logistics, airlines,

telecommunications and media, power, utilities and rail services, as well as

pharmaceuticals and biosciences.

Some of the prominent ownerships of Temasek Holdings include Singapore

Airline, DBS Bank of Singapore, Standard Chartered bank, Sing Tel and Port

Authority of Singapore. Through its directly and indirectly owned subsidiaries

Temasek Holdings has begun to increase its investments in the Asian Banking

and Financial Sector, Investments also include stakes in bank Danamon

Indonesia, Bank International Indonesia, ICICI Bank in India, Hana Bank of

Korea.

Temasek Holding exposure to Pakistan has recently increased tremendously,

with Sing Tel acquiring a substantial stake in Warid Telecommunication Limited

and port authority of Singapore securing a long term management contract of

Gwadar Port.

As one of the fastest growing banks in Pakistan, we would like to assure you that

there will be no interruption to the service you are currently enjoying and it will be

the same friendly faces serving you. As NIB Bank, we look forward to serving you

even better with new and enhanced products and services. You will have the

benefits of reaching us with ease through any of our 240 branches, in more than

60 cities across Pakistan. NIB Bank will provide you the benefit of transaction



ease through the 7th largest distribution network of the country and a network of

more than 100 ATM’s across Pakistan.

2.3 MISSION OF NIB BANK LIMITED

To become the bank-of-choice for the most discerning segments of the corporate

and consumer markets in Pakistan. We will employ state of the art technology

and communications systems to deliver financial services that are innovative and

affordable, and which will allow our customers to transact conveniently and

efficiently.

2.4 VISION OF NIB BANK LIMITED

To be a premier financial institution of international standard and repute, offering

innovative value-added products and services, tailored receptively to the

customer's needs and satisfaction, while optimizing the shareholders' value

through meeting their expectations, making NIB an "investor preferred institution"

amply justifying its claims of a "financial supermarket" by catering all financial

needs of the customers under one roof.

2.5 CREDIT RATING

Credit rating agency, PACRA, is currently in the process of evaluating the impact

of the merger of the PICIC and PCBL with and into NIB Bank Limited. Till the

completion of the review, the rating assigned to NIB of long term A+ and short

term A1 remain on Rating Watch, with positive implications.



2.6 ORGANIZATIONAL STRUCTURE/CORPORATE GOVERNANCE OF NIB BANK

NIB Bank Ltd is managed by a Board of Directors with representation Temasek

Holdings shareholders. The Board of Directors, which is the highest policy

making body of NIB, consists of eight directors. . The Board deals with all policy

matters and applications involving financial assistance up to the maximum

lending limit, accordingly to NIB total net worth both in foreign and local

currencies. The Board's Executive Committee, comprising of eight Directors,

deals with matters other than those involving policy and applications for financial

assistance. The following gentlemen presently comprise NIB Bank ltd Board of

Directors:

Mr. Francis Andrew Rozario

Mr. Mahmudul huq Bhuiyan

Mr. syed Aamir Zaidi

Mr. Thomas Patrick Sodano

Mr. Tan Soo Nan

Mr. Willie Wai Kong Chan

Mr. Phua Kok Kim

Mr. Khawaja Iqbal Hassan



2.7 MANAGERIAL CHART

NIB is equipped with very strong and experienced human resource structure

consisting of financial/ investment analysts, marketing experts/economists,

engineers, chartered accountants, cost accountants, financial accountants and

legal experts.

NIB has traditionally been hiring individuals from renowned educational

institutions and professionals with rich work experience so as to have a superior

blend of experts and strategists to manage the affairs of the Corporation.

Nib’s staff turnover is comparatively low which shows the compatibility of its

compensation policies for holding competent work force according to their

professional caliber.

NIB continues to pay special emphasis on the training of its professional staff and

avails to the maximum possible extent the training opportunities offered by the

World Bank, ADB, ADFIAP, ADFIMI, etc. along with training programs available

within Pakistan.



2.8 ORGANIZATIONAL CHART

Organizational chart is a diagram that represents the positions & relationship within an organization that reveals the company’s organizational structure...



2.9 GOAL OF NIB BANK

NIB, after turning the corner, is now destined to revive its glory through

dynamic business activity which includes:

Research Monograph Muhammad Faraz Ali Khan

President / CEO

Group Leader

Cluster Manager

Manager

Relationship Manager

Operation Manager

Counter Service Supervisor

Counter Service Officer

Branch Service Officer

Personal Banking

Consultant

Date Center Incharge

19


Enhancing Recovery of Loans.

Resource Mobilization for On-Lending.

Revival of Sick Units.

Out Of Courts Settlement Even In The Cases Under Litigation

Fund Management And

Expanded Merchant Banking Operations.

Growth in Lease Financing.

With all such activities, NIB has started to earn sizable profit, and

has started to pay dividend to its shareholders NIB has reemerged

as a viable financial supermarket. The scope of NIB financing which

was previously confined mostly to providing long term foreign and

local currency assistance for setting up industrial ventures has

been further expanded to encompass provisions of other credit

facilities and services. Commensurate with the growing competitive

business environment, through the acquisition of a commercial

bank.

NIB has realized that in order to meet the challenges of future

especially the Third Millennium, NIB needs to diversify from its

traditional role of provider of subsidized credits to sub-borrowers.

Realizing this NIB is diversifying itself with the changing financial

and operational scenario; it has to readjust itself into a financial



institution which covers a wide variety of business operations. With

the privatization process in vogue and development of a free

market economy, the rules of business are substantially changing.

The era of subsidized credits has been substituted with real market

forces requiring effective and efficient ability to conduct into the new

business order. NIB is presently exploring the possibilities of new

business areas as part of its diversification plan.

2.10 PARTNER IN GLOBAL AGENDA

As a member of World community of development partners, NIB is also deeply

concerned with international agenda like Environmental Protection. NIB is keen

in pursuing to augment efforts in this direction. For the purpose of environment



protection specially in the area of industrialization process where environmental

threats are more common in the shape of air and soil pollution and threat to

human health. NIB is also concerned with the increasing global realization of

quality standards. Nib’s lending policy is being further improved to support

industrial production process in conformity with the ISO standards. NIB it self is

keenly interested in following a path which leads to its ISO certification as a

financial institution in near future.



NIB BANK CORE BANKIG APPLICATION MODULES

3.1 MARKETS & PAYMENT SYSTEM



INSTITUTE FOR DEVELOPMENT ANDRESEARCH IN BANKING TECHNOLOGY

V. P. GULATISeptember 12, 2002

Markets & Payment Systems

RETAIL

WHOLESALE(Corporate)

FOREIGN EXCHANGEMARKET

COMMODITIES MARKET

CAPITAL MARKET

MONEY MARKET

BUYER SELLER

TRADING

DEAL MAKING

DEAL DECISION

DELIVERY

PAYMENT

INFR

AST

RU

TU

RE

PAYMENT SYSTEM (S)

DELIVERY SYSTEM(S)- OWNERSHIP TRANSFER

MARKET-RELATED TRADE-REPORTING SYSTEM(S)

3.2 Changing Face of Banking Business



Products and services

Emergence of new delivery channels

Convergence of core banking business and information technology

Mergers & acquisitions

New services (Tele-banking, E banking, door step banking) and new approaches to banking (automated self banking centers

Core banking

Customer relationship management

CUG networks

Kiosks / new delivery channels

Risk management

Wireless Technologies

Smart cards

Data Centre / DM / DW

Call Centre/Help Desks

Resource management

Internet / electronic banking



3.3 NIB BANK Secure Links Between Existing And New Technology Platforms

NIB Bank—Pakistan 7th-largest commercial bank--values the ability to maintain security while making mainframe data accessible across an open client/server network. NIB Bank today has 240 branches in Pakistan. It takes a progressive approach to information technology, and has created a truly distributed client/server environment with the Open Software Foundation's Distributed Computing Environment (DCE) providing the secure connections.

NIB Bank was already using telecommunications in the 1995 to boost its back office operations. In the 2000, the focus shifted to the front office, and the need to give more autonomy to the branches. "As a result, NIB moved to a form of distributed computing in which local branches could service 80% of their own needs.”They only contacted the mainframe to store and forward transactions, or to execute exceptionally large transactions."

Because of the synergy between the various NIB Bank company systems, the bank wanted to incorporate existing equipment as far as possible: "With the infrastructure in place, NIB are now changing applications that are 10 or 15 years old to the new DCE environment, and testing the various types of transactions--many of them running under PIBAS."



3.4 Banking network



NIB bank banking application can be access around its 240 branches through out Pakistan though dedicated network link (through PTCL DSL service , Wimax technology by Wateen Telecom , Cyber network ISP .as whole network is centralized.

Security Services provide NIB Bank with security tighter than is possible with conventional passwords. DCE entrusts security not to the client or the server, but to a "third party"--a dedicated and physically secure DCE security server. This server controls three security processes:

Authentication, to identify both the client and the server. This involves a complex process of encrypted tickets, and thus avoids the exposure of sending passwords over the network.

Authorization, which determines whether that client has the right to access the resources it is requesting (the server holds access control lists).

Encryption, based on the DES encryption algorithm that enables an organization to choose various levels of security up to full encryption with all data encoded.



These processes are hidden from users. All they see is a simple means of using one password and one username to gain access to any data to which they are entitled, anywhere on the network, without having to ask for access to individual networks and servers.

3.5 How NIB Bank Plans To Benefit

Centrally-held information and data will be more easily available to authorized users anywhere in the network

Branch staff can be more effective through being able to access commercial information and better-quality services and facilities

Tight security through a dedicated security server and unique user IDs

Information is consistent at every site because DCE's global file system holds only one logical copy of a file for the whole network

DCE's true open systems environment offers the flexibility to incorporate the bank's existing multi-vendor systems, and add to the network as required in the future

Administration and management can be reduced because changes need only be made once at a single point for distribution across the whole network.



Protection Against Security Threats

4.1 Protecting Online Banking from Security Threats.



5 Essential Components of Online Banking Security

Today, all major banks offer online baking services to their customers. They also have taken many steps by adding security features to the service infrastructure, such as measures to prevent identity theft and fraud so that online banking is a safe and secure experience. However, as more customers depend on a reliable online access, there are steps to take against new types of online threats. Great Disasters happen, not because people run risks, but because they don’t understand the risks.



How come the Cyber attack in NIB IT infrastructure stopped by firewalls and the Internet Service Providers

Denial of service (DoS) attacks and Distributed Denial of Service (DDoS) attacks are very difficult to stop using firewalls because the content is legitimate and the intent is malicious.

Most ISPs for online banks do not have adequate tools and techniques required to stop the onslaught. They can simply take down the network - which furthers the purpose of the attackers.

Comprehensive Online Banking Network Protection

Feature DDoS

Mitigation

Firewall Content

Based

Security

(IPS)

Web

Application

Security

(Application

Firewall)

Floods (SYN, TCP, UDP, ICMP, Fragment, Port, etc.)

Yes No No No

Botnet Attacks Yes No No No

Source Tracking, Source Limiting Yes No No No

Continuous Behavior Learning and Adaptive Control Yes No No No

Header and State Anomalies Yes No No No

Port Scans, Network Scans, Dark Address Scans Yes No No No

ACLs Yes Yes No No

NAT No Yes No No

Stateful Inspection No Yes Yes No

Stateful Signatures No No Yes No

Traffic Signatures No No Yes No

Cross Site Scripting, Parameter Manipulation, Command Injection

No No No Yes

Information Leakage No No No Yes

A comprehensive security plan for security includes both network security and application security plan.



4.2 Architecture of NIB BANK Secure Online Banking Network



\RESEARCH METHODOLOGY

The goal of the research process is to produce new knowledge, which takes

three main forms

Exploratory research, which structures and identifies new problems Constructive research, which develops solutions to a problem Empirical research, which tests the feasibility of a solution using empirical

evidence

Research can also fall into two distinct types:

Primary research Secondary research

In social sciences and later in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research:

Qualitative research Quantitative research

Research is often conducted using the hourglass model Structure of Research. The hourglass model starts with a broad spectrum for research, focusing in on the required information through the methodology of the project (like the neck of the hourglass), then expands the research in the form of discussion and results.

Exploratory Research Method

Exploratory research provides insights into and comprehension of an issue or

situation. It should draw definitive conclusions only with extreme caution.

Exploratory research is a type of research conducted because a problem has not

been clearly defined. Exploratory research helps determine the best research

design, data collection method and selection of subjects.

During this research project report on NIB, I have used Exploratory Research

Method.


http://en.wikipedia.org/wiki/Research

http://en.wikipedia.org/wiki/Quantitative_research

http://en.wikipedia.org/wiki/Qualitative_research

http://en.wikipedia.org/wiki/Secondary_research

http://en.wikipedia.org/wiki/Primary_research

http://en.wikipedia.org/wiki/Empirical_research

http://en.wikipedia.org/wiki/Constructive_research

http://en.wikipedia.org/wiki/Exploratory_research


Sources of data

1. Primary data

2. Secondary data

1. Primary data

Primary data, which I have personally collected during my internship

period at NIB, from sources like interviews and discussions with bank

staff and management personnel, personal observation and doing

work myself.

2. Secondary data

This data is collected by annual reports of bank journals and

brochures published by NIB Bank, also collected necessary

information from banking related books, magazines, newspapers and

Bank website.



LIMITATIONS

During this research the following difficulties have been experienced by the

internee.

Time Limitations The main problem faced by the internee during this

study was time limitation. Due to shortage of time on the part of the study

and officials of the bank, very few meetings and visits have been

managed.

Secrecy of the Data

Another major problem faced was the secrecy of data. Because of that,

The IT security breach and NIB IT security policy. Hence the availability of data is

very much limited.



CONCLUSIONS & SUSSESTIONS

Conclusions

Today banks have to look much beyond just providing a multi-channel service platform for its customers. There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future. Here are some of the concerns in the mind of every bank's CEO.

Customer retention: Customer retention is one of the main priorities for banks today. With the entry of new players and multiple channels, customers have become more discerning and less 'loyal' to banks. Given the various options, it is now possible to open a new account within minutes. Or for that matter shift accounts within a couple of hours. This makes it imperative that banks provide best levels of service to ensure customer satisfaction.

Cost pressures: Cost pressures come into play when banks are not able to afford the cost of a certain service or initiative although they want to or need to have it in place. This is primarily because the cost structure at the backend is not efficient enough to offer that kind of service to the marketplace.

The need for more investments in IT has increasingly forced some banks to sell-out of certain banking operations. The cost of IT investment required to remain competitive and the uncertainty future profits has forced withdrawal.

Security of information systems was found to be very vulnerable in general. The amount of resources that is required for security is lower than required. The fact that ‘Hackers’ can still get into banking IT systems easily without inside help demonstrate the magnitude of the problem.

IT Fraud is also a major problem of the banking industry especially where plastic cards are concerned. The increased IT knowledge of the general public and proliferation of cheap computer technology mean that weaknesses in card payment systems are exploited fraudulently. Millions of Rupees is lost to plastic card fraud every year. This is simply because the cards are not secure enough.

Bank IT and Security staff need to fully understand the organization’s risks and vulnerabilities. Knowing the drivers for change, both the external & internal influences. They must develop a corporate risk profile. Implement a strong Governance and Controls infrastructure. Monitor and maintain the security and risk profile to meet new challenges.



Reputation risk associated with Denial of Service attacks can impact public opinion that results in a critical loss of funding or customers.

SUGGESTIONS

In recommendation the banking industry need to better apply IT to improve its operations, customer services and products. Banks should devote more resources to development of secure IT systems, services and products. Also, the future impact outsourcing IT requirements should be thoroughly evaluated, the long term effect may be very expensive.

A. Adoption of Effective technology

It is suggested that responsible steps should be taken to insure IT security

frauds.

B. Job Training Programs

Nib needs to provide its employees with classroom training. It needs to

have its own training institution in Pakistan, as it is a leading bank. Such

institution can provide training opportunity to other local banks employees

too.

C. Perquisites and Allowances

The number of allowances and perquisites for the employees should be

increased to ensure that they put their body and soul in the jobs assigned

to them.

D. Permanent Hiring

The fresh hiring should be made permanent so that they are secured of

their future. Further the allowances and perquisites attached with the

permanent jobs will also increase the motivation level of the employees.



REFERENCES

1. www.Howstuffworks.com

2. www.sbp.org.pk

3. www.nibpk.com

4. NIB information booklet. 30/06/2009

5. Schedule of bank charges and services.

6. www.kse.com.pk

7. NIB Bank’s annual report. (2008)

8. Quarterly Report of NIB Bank ( March 31, 2009)

9. www.Wikipedia.com

10. Research methods in education by L Cohen, L Manion, K Morrison – 2007

11. Writing at University: a guide for students by P Creme, MR Lea - 2003


http://oro.open.ac.uk/727/

http://books.google.com.pk/books?hl=en&lr=&id=i-YKKgtngiMC&oi=fnd&pg=PR17&dq=research+methods&ots=zV4wG7HGiM&sig=i8zp-suK3mtE4pfSV7rUdUGvWjM

http://www.Wikipedia.com/

http://www.sbp.org.pk/

http://www.Howstuffworks.com/

nib internship report

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