FINI619 Internship Report on NBP 1

8/3/2019 FINI619 Internship Report on NBP 1

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A n I n t e r n s h i p R e p o r

tN 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


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Dedication

I dedicated this Internship Report to

My family members and

Virtual University of Pakistan

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Acknowledgement

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

allknowledge, 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- IntellectualPrestigeComputer Science College Mailsi (PMLS01), for special arrangement of

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

operationit 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 speciallythesympathetic 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 BankMain Branch Mailsi for her cooperative attitude during the completion of my

projectwork. He helped and supported me during gathering and analyzing information. I am

really very thankful to one of my friend Mr. Mohsin Raza for his cooperat ive

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

gathering and analyzinginformation.

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Executive summary

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

inNational 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 practicalexperienceworking in an organization during the internship and study the system of Nationa l

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

onlinebanking system the load of work can be decreased. All the staffs do not know aboutcomputer. There is almost one or two employees are trained to operate the system

inevery branch. Especially, the cash department is not familiar with computerandinfor mation system.

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

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

forthe 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

changingenvironment of financial institutions. I observed that seniors are illiterate ofcomputerand not technical hands. New comers have more knowledge about business

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

issuggested to develop human resources training programs and refresher courses.

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Internship

Certificate

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Table of Contents

MC062000032.....................................................................................................

1

Dedication ...................................................................................................................... 2Acknowledgement ......................................................................................................... 3

Executive summary ........................................................................................................ 4

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

Internship

Certificate

...................................................................................................... 5

Table of Contents ............................................................................................................ 6Introduction .................................................................................................................... 7

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

Overview of the organization ....................................................................................... 10

Organizational

structure

............................................................................................... 20

Number of employees ............................................................................................. 22

InternationalLevel

....................................................................................................... 23Plan of your inte rnship program ................................................................................... 23

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

xiv) Islamic Banking .............................................................................................. 26

Functions of the Finance Department .......................................................................... 28Accounting system of the organization...................................................................

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

Use of electronic data in decision-making

..............................................................28 Mobilization of funds. .............................................................................................. 29

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

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

Critical analysis ............................................................................................................ 29

..................................................................................................................................... 33

SWOT Analysis of the organization ............................................................................. 34

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

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

35 Opportunities ............................................................................................................ 35

Threats ...................................................................................................................... 35

Conclusion & recommendations ................................................................................. 36References ................................................................................................................... 37Annexes ........................................................................................................................ 37

..................................................................................................................................... 38

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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

isengaged in providing commercial banking and related services in Pakistan

andoverseas. 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 alsoprovides 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 bankdetermined to set higher standards of achievements. It is the major business

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

economic growth through aggressive and balanced lending policies,

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

internationally and representativeoffices.The Bank is providing all banking services of mercantile and commercial

bankingper 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 throughlong

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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 localauthorities. 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

representationabroad.

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

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

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

financialcenters 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 theemergingopportunities 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 acquisitionandapplication of new technologies in every aspect of its banking facilities. It has

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

Centersto cover various on-line and batch system requirements of branches andcontrollingoffices. 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 majorcities.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 Unit

Representative Offices:

Beijing, Tashkent, Chicago and Toronto

Subsidiaries:

CJSC Almaty, Kazakhstan

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NBP Capital Ltd.

National Bank Modaraba Management Co.

Taurus Securities Ltd.

NBP Exchange Company Ltd.Joint Venture:

United National Bank Ltd., UK

(Economic Indicators Pakistan, Published by Economic research Wing NBP, Head

OfficeKarachi)

Present Status of the Bank

The new management team having extensive experience of management of

largefinancial institutions both within and outside the country is expected tofurtherenhance the profitability and operational efficiency of theBank.

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

largestfinancial institution, the Bank is uniquely positioned to leverage its largebranchnetwork and its 8.5 million-customer base to consolidate its core businesses as well as

develop new revenue generating opportunities.

The new management team is in place combining the Bank's existing personnelwithprofessionals recruited from outside. Operating procedures are being re-defined and

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

theprogress on some critical areas is as follows:

Corporate & Investment Banking

A new approach to corporate banking is underway. The Bank has initiated a structured

approach to corporate banking by introducing a single point of contactthroughRelationship Managers (RMs). For this purpose, new RMs as well as team leaders

have been inducted to expedite this process. Area Managers will be appointedtomanage relationships and to better service the needs of multinationals and large

localcorporates.

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

tomajor 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

The deregulation of foreign exchange treasur y business has ensured that a growing

Volume of business now flows through the inter-bank market where rates are

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

profitableproposition for the Bank.

Towards this objective, the Bank is shifting focusing on expanding its market share in

trade finance, home remittance and foreign investment related forex-

denominatedflows.

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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 higheststandardsof 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.

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Brief History

National Bank of Pakistan was established on November 9, 1949 under the NationalBank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions, which

were developed after trade deadlock with India and devaluation of Indian

Rupeein1949. Initially the Bank was established with the objective to extend credit to

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

theCompanies Law was set aside and the Bank was established through the promulgationof an Ordinance due to the crisis situation that had developed with regard to

financingof jute trade. The Bank commenced its operations from November 20, 1949 at

siximportant jute centers in the then East Pakistan and directed its resources infinancingof 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

Pakistanfor handling Provincial/Federal Government Receipts and Payments on their

behalf.The Bank has also played an important role in financing the countrys growingtrade,which has expanded through the years as diversification took place. Today the

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

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

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

economic growth through aggressive and balanced lending policies,technologicallyoriented products and services offered through its large network of b ranches 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,

GlobalFinance after a worldwide survey declared NBP in its issue of May 2003 as one of the

Best 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 RatingAgency 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 SensitiveManagement.

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

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

in its issue of March 2005 has published Moodys Investors Service rankings in whichNBP 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 hasnamedNBP 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 2005by 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


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

Profit on Capital in the world.

On the basis o f 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

f inancial 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

FinancialStrength Rating (FSR) rom+ to D-, in November 2005.Best Foreign Exchange Bank-Pakistan award for the year 2006 by worlds leading

f inancial journal GlobalFinance.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

July2007.

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 financia l

journal Global

finance.

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Nature of the Organization

National Bank of Pakistan is a Governmental Organization. It is functioning asanagent of State Bank of Pakistan. It implements the policies of SBP. Its basic

objectivewas to extend credit to the agriculture sector. It is the major business partner fortheGovernment of Pakistan with special emphasis on fostering Pakistan's economic

growth through aggressive and balanced lending policies, technologically

orientedproducts and services offered through its large network of branches . It deals all Govt

Revenue, 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

withlending, and borrowing and investing activities.The National Bank of Pakistan a commercial bank generally makes advances for

aperiod not exceeding one year, except in case of small and medium industriesforwhich advance may be made for a maximum period of five years. The bank makesnotonly 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 stockcompanies, Government securities, Insurance policies deposits receipts, etc.

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

ofsecurity the size of loan and the integrity of the

party.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

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

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

partnerfor the Government of Pakistan with special emphasis on fostering Pakistan'seconomic growth through aggressive and balanced lending policies,

technologicallyoriented products and services offered through its large network of b ranches locally

and internationally and representativeoffices.Business Volume

National Bank of Pakistans business volume is expanding day by day and now it becomes

largest bank of the country.(Rs. In Millions)

2003 2004 2005 2006 2007

Total 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

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Product Lines

National Bank of Pakistan serving following product lines:

National Bank of Pakistan Saiban Scheme

National Bank of Pakistan lending for construction of home

to 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

improvementand 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

andforeclosure related issues, so to protect the banks interest.

NBP Advance Salary Scheme

National Bank of Pakistan facilitates to employeeswithadvance salary under certain

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

Minimum documents required for advance salariesscheme. Advance salar ies 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.

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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 oneyear. No penalty for early repayment.

National Bank Kisan Dost Scheme

National Bank of Pakistan lending in agriculturalfield. National Bank of Pakistan lending farmers for development of agriculture sector

ofthe 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

agriculturalinstruments, 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 agriculturalexperts. NBP provide loans against agricultural passbooks, gold ornaments and paper

securities.

National Bank Premium Aamdani Certificate Scheme

A monthly income scheme introduced by National

Bank 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 facil ity against thesecertificates. NBP allowed to customers to conver t existing deposits into

National 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 thecountry. 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.

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International Baking

National Bank of Pakistan is at the forefront of international banking inPakistanwhich is proven by the fact that NBP has its branches in all of the majorfinancialcapitals of the world. Additionally, we have recently set up the Financial

InstitutionWing, which is placed under the Risk Management Group. The role of theFinancialInstitution 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

competitive.

charges for this service are extremely

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.

Limitat ion: No l imit 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

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

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

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COMMERCIAL FINANCE:

Let us help make your dreams become a reality. Our dedicated team ofprofessionalstruly 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

ofPakistan 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

thebeneficiaries

New Features :

The existing system of home remittances has been revised/significantly improvedandwell-trained field functionaries are posted to provide efficient and reliable

homeremittance services to nonresident Pakistanis at 15 overseas branches of the

Bankbesides United National Bank (the joint venture between NBP and UBL in UK)., andBank Al-Jazira, Saudi Arabia. Zero Tariff: NBP is providing home remittance

serviceswithout 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

thebeneficiaries.

SWIFT SYSTEM:

The SWIFT system (Society for Worldwide Inter bank FinancialTelecommunication)has been introduced for speedy services in the area of home remittances. The

systemhas built-in features of computerized test keys, which eliminates the

manualapplication of tests that often cause delay in the payment of home

remittances.The SWIFT Center is operational at National Bank of Pakistan with a universalaccessnumberNBP-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

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

Agricultural Finance Services:

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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 mainobjectives:-Providing reliable infrastructure for agricultural

customersHelp farmers utilize funds efficiently to further develop and achieve better

productionProvide farmers an integrated package of credit with supplies of essential

inputs,technical knowledge, and supervision of farming.

Agricultural Credit (MediumTerm):

Production and development :

Watercourse

improvementWells

Farm power

Development loans for tea

plantationFencing

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 loansEquipment loans for purchase of tractors, farm implements or any other

equipmentLivestock 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 thisscheme.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-terminvestment needs. By sharing the risk associated with such long-term investments,

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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

provesthe 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 forgestrongrelationships 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

debtofferings. Our syndication capabilities are complemented by our own capital

strengthand 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

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

totake advantage of our outstanding range of payment, ejection, liquidity

andinvestment 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

baseand restore investor confidence. The bank is now regarded as the most activeanddominant player in the development of the stock market. NBP is involved in

thefollowing:

Investment into the capital

marketIntroduction of capital market accounts (underprocess) NBPs involvement in capital markets is expected to increase its earnings,

whichwould result in better returns offered to account holders.

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Competitors

Competitors 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 ofPunjabOrganizational

structureOrganizational 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-ClericalStaff

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Syed Ali Raza

President & Chairman

Azam FarooqueSikandar Hayat Jamal Mian Kausar Hameed Ibrar A. MumtazDirector Director Director Director

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

Director Director Director Director

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Span 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 oftheorganization we find narrow span of control in the bank.

Number of employees

Description 2002 2003 2004 2005 2006 2007

Total Employees 12195 13272 13745 13824 14019 15019

Main Offices

Audit Committee

Chair man Azam FaruqueIbrar A. Mumtaz

Mian 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.) Limited

Shares Department, Ground Floor,

Modern Motors House,

Beaumont Road,Karachi, Pakistan

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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 0497

Region MultanRegion Code 08

Address Quaid- e-Azam Road Mailsi

Tehsil Mailsi District Vehari.

Phone No. 067-410318, 067-411918Fax No. 067-410318

Name 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.

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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, AgricultureFinance, 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.

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v) Remittances

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

tothe other persons and organizations through various way i.e. Bank draft, TelegraphicTransfer, 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 thisfacility.

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

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

the bank working together to provide reasonable assurance that the organization

willachieve its objectives and

mission.

ix) Agriculture Department

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

ofPakistan. Commercial banks being the greatest mobilizer of savings in thecountrywith their large network of branches play important role in financing agriculture.

TheNational 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,

medicalfacilities, staff loans are basic functions of thisdepartment.

x) Information Technology Department

Banks data collection and information system run by Regional Data

CollectionCenter. This department manages staff training programs regarding

computer.

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xi) Online Banking

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

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

loansi.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 rateto earn profit.

Account opening is also very vital now a days in banking system due to KYC (Know

your customer) , AML (Anti Money Laundering) and ATF (Anti terrorist financing)

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

arevulnerable to it.

I got training in this department for two weeks and after understand the basicconceptI practically opened account of walk-in-

customers.

ii) Remittances and Bills

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

Customers collect their money/amount through bills. They present theircheques,drafts and other bills for collection within the city and out of the city throughmail.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.

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. Thisway NBP is serving great job of revenue collection.

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

tothe 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, AgricultureFinance, 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

andthat the bank turns down no viable loan request.Retail and Commercial wing enhanced the profitability of the bank. National

Bankbecame the largest profit-earning bank of the country by introducing personalloansi.e. NBP Advance Salary Scheme and Saiban Scheme.

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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

ofthe bank. Bank use manually accounting system during its operationalactivities.

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

investingactivities and also hold down the cash position of others financial institutions i.e.bankslike 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

ofthe bank all the decisions make by higher offices i.e. Regional Office or Head Officeandthis branch only act upon on the order received from high

command.

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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

statedabove in product line.

Generation of funds

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

tovarious sectors, advances from other financial

institutions.

Sources of funds

Fund generation of the branch is depositing, receiving interest on lending moneytovarious sectors, advances from other financialinstitutions.

Allocation of funds

Bank allocates funds according to the instructions of the high

command.

Critical

analysisFinancial 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

beenquite 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 anincrease 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

thetop tier at 0.32Net 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. The

growth 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

byRs. 29 billion or 5% mainly due to our marketing efforts and the trust thatcustomershave 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. Thecompensation 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 ourcosts

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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

ingeneral provision of Rs. 825 million due to reduction in provision requirement onadvance 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 oflastyear, 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

withdrawalof 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

of2007. 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

forrecovery of non-performing loans and aggressive targets have been assigned to theunits.

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

andhard 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 Raza

Chairman & President

Date: August 25, 2008

Others Issue

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

theoreticalconcepts 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 newtechnologies. This situation creates difficulty for handling new

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

havegot 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

asingle day. Furniture, temperature, light and sitting arrangement was not goodforcustomers and bank employees.

Professional Approach: Work specialization and job specification are found very

lowin banks employees. Business administration qualities and education is at lowside.Shortage of Staff: There is shortage of staff in the Bank. Number of customer peremployee is very high. Cash department is suffering very badly and facing great

dealof over workload.

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

employeesare not able to operate PCs.

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

managementand 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

notcr ystal clear.

Unjustif ied Appraisal Criteria: No justified appraisal criteria are implementedforannual increase in salary and promotion of staff. It creates un-satisfaction amongtheemployees of the Bank.

Undemocratic Decision Making : I observed that some times employees are

notinvolved 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

takingaccount of all expenses and income taxes. This ratio can be calculatedas:

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

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

aftertaxes to the Shareholders Equity.

This ratio is calculated

as:ROE=Profit after taxes/Share holder s Equity

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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

theirassets. 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. This

shows 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 2007Return on

156986/463427 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

theircustomer to borrower.

It is calculatedas.Advances deposit ratio = Advances/ deposit

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2005 2006 2007

Advances

Deposit 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

onNBP 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 thatisrisky to deposit the money in the bank.

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SWOT Analysis of the

organizationStrength

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 with

Pakistan 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

ofWestern Union Money Transfer

SBP rated Fair for capital & human resources, Strong for assets, Fair for

management and Satisfactory for both earning (Rs.24.1 for per share) and

liquidity

Weakness

Lowest Internal Control and Compliance System, SBP rated Marginal which

is alarming for the Bank

Unsatisfactory corporate culture of the Bank

Physical environment and atmosphere compare to other banks is not meetthestandard

Less number of Online Branches

Ineffectively use of technologies i.e. Informationtechnology Shortage of staff- per employee customer is very high side

Technical education and training of s taff is

insufficient

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Opportunities

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

Trust and reliability creates chances to enhance deposit andprofitability. 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

enhanceits investment andfinancing. Being an agent of State Bank of Pakistan it can play vital role in

localeconomy.

Earning commission/exchange on Government transactions.

Threats

SBP penal ties due to low internal control and

compliance. Government, SBP and Prudential Rules and Regulations.

Schedule banks and Multinational/International banks profitrates. 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.

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Conclusion &

recommendations In my opinion the process of a transaction should be short in order in save

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

basisof perfor mance to provide job satisfaction.

The bank should spend more on renovation of the branches to improve

environment and atmosphere to attract the

customers. Sitting arrangement, air conditioning and new furniture should befacilitated The Bank should introduce the computers software to cope the heavy load of

work and better control.

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

daysthe difficulties faced by the bank staff as well as the

customers. All Branches of the Bank must be online.

All the departments should be establishedseparately. Bank can increase its profit ratio by reducing extra expenditures and to

enhancethe volume of advanced especially retail

loans. I done internship, I recommend that security level in the bank should

beenhanced 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

aswell 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 wingandsurprise 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 theprivate/multinationalbanks.

Double shift system should be introduced to improve attitude and behavior of

the employees.

Payment of salaries and pensions should be made separately to

accommodatethe valued customers and depositors.

For collection of utility bills i.e. Electricity bills, Telephone bills, Water

andGas bills separate cash receipt counter must be

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

theborrowers and enhance the profitability of the Bank.

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References

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

2. Economic Bulletin, Vol. 34, No.5 September October 2007, published

bi-monthly by Economic Research Wing, National Bank ofPakistan.

3. Economic Bulletin, March-June 2008, published bi-monthly by

Economic 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 Resources

Management and administration Group, National Bank of Pakistan Head

Office Karachi.

9. Management Brief, March 2008 published by Human Resources

Management and administration Group, National Bank of Pakistan

Head Office Karachi.

10. Management Brief, June 2008 published by Human Resources

Management 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 Economic

Research 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

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Brochure- NBP Awards & Achievements.

Brochure- NBP Kisan Dost.

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FINI619 Internship Report on NBP 1

Documents