NBP

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Asslam O Alikum Remember Me In Ur Prayers

~*~AFAAQ~*~

MBA 3rd Finance Group [email protected]

Islamabad

When I joined the bank, I had no practical experience with regard to working of a regular bank. Then I got an opportunity from the

university authorities to join and work with NBP to get experience of the rules and regulations that bank follows.

I left the bank with a thirst to learn more. I seek a chance in order to survive in a banking environment.



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ACKNOWLEDGEMENT

Praise to Almighty Allah, the Omnipresent, the Omnipotent, Who

bestowed upon me the potentially and ability to accomplish this work.

No sequence of works can express my sincere gratitude to our respected

Professor Fidah Hussain Bukhari without whose valuable guidance, rich

experiences, helpful advice, useful suggestions and constructive criticism and

comments. I could not have been able to complete this Internship Report.

I have honor to express my heart-full gratitude to the executive and staff

members of National Bank of Pakistan, Saman Abad Lahore, who kindly gave

them acceptance to the topic of my Internship Report along with many useful

suggestions which encouraged me to complete my work.

Thanks for all those who extend their cooperation for conducting the work of

“Business Internship”

- ----



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National Bank of Pakistan (NBP)

Vision

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

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

Mission

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

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

performance, and Adopting & living out our core values.this mission prepared bay ali

akbar zaidi khair pur mirs

History:

NBP was established under the National Bank of Pakistan Ordinance 1949 in

Pakistan. NBP occupies a unique position in the financial sector of Pakistan. It

acts as an agent of the Central Bank wherever the State Bank does not have its

own Branch. It also undertakes Government Treasury operations. The

National Bank of Pakistan is a Commercial Bank and transacts all types of

Banking Business. The National Bank of Pakistan was established on

November 29, 1949 as a semi public commercial bank.

The Bank has the distinction of acting agent of the State Bank of Pakistan and

operates treasuries where the State Bank of Pakistan does not have any office.

The Head Office of the Bank is at Karachi. Ever since its establishment in 1949

it has been leading Commercial Bank of the nation, sole agent of the



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Government of Pakistan‟s batter trade with countries and of State Bank of

Pakistan for the Government Treasury.

In Pakistan, the bank provides complete bank facilities to the people at over

1436 Branches operating even at the far lug Northern Areas. National Bank of

Pakistan is the first bank in the country to introduce and implement

supervised Ruler Credit Programmed help small farmer to obtain loans at his

doorsteps on easy terms and conditions. It has also played a pioneering role

in introduction of profit and loss sharing System (PLS) as a major towards

Islamization of economy.

NBP is 100% owned by the Government of Pakistan (GoP).

Branch Network:

NBP has an extensive domestic branch network of over 1500 branches located all over Pakistan. The Bank also has a presence in 24 international locations including the USA, United Kingdom, Europe and the Far East.

The Head Office of the Bank is at Karachi. Ever since its establishment in 1949

it has been leading Commercial Bank of the nation, sole agent of the

Government of Pakistan‟s batter trade with countries and of State Bank of

Pakistan for the Government Treasury.

In Pakistan, the bank provides complete bank facilities to the people at over

1436 Branches operating even at the far lug Northern Areas. National Bank of

Pakistan is the first bank in the country to introduce and implement

supervised Ruler Credit Programmed help small farmer to obtain loans at his

doorsteps on easy terms and conditions. It has also played a pioneering role

in introduction of profit and loss sharing System (PLS) as a major towards

Islamization of economy.



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The banks carry on its business through a wide network of branches locally

and internationally. These branches execute their function under the

supervision of local Regional Offices and regional offices are supervised by

the Head Office located a magnificent building in the heart of Karachi‟s

center.

It is now extending the operations of the Bank to all branches to Banking, to

commerce, to industry to trustee services as well as to agriculture and to the

need of the small or big businessman.

Organogram of Governing Bodies In National Bank Of Pakistan

Board of Directors

President

Group Chief

Group Credit Group HR Group Compliance Group Credit Management Chief Chief Administration Chief Chief

At Regional Level

Regional Credit Regional HR Regional Compliance Incharge Credit Management Chief Chief Administration



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Chief Branch Manager Branch Operation Manager

ORGANIZATIONAL STRUCTURE

PRESIDENT



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DEPARTMENT FUNCTIONING UNDER N.B.P

Departments in NBP:

Account Opening Department

Deposit Section

Bills Remittance Department

Clearing Department

Cash Department

DIRECTORS/ SEVPS

Provincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade-I, II, III

Clerical and non-clerical

staff



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Credit Department

Pension Section

Issue of inland letter of credit

Cash Department

Cash Department is the most important section in the bank. It

performs the following three main functions:

1. Bank payments & receipts

Bank payments means cash payments to

those persons who represent cheques and bank receipts includes cash deposits made by account holders.

2. Government receipts & payments

Government receipts means

collection of income tax, property tax, sales tax and traffic

challans. Government payments include salary payments to Govt

employees and Pension payments.

3. Collection of utility bills It includes collection of all utility bills which includes electricity , gas and water bills. It also includes ptcl

bills.

The following books are maintained in the cash department:-

1 ... ... Receiving Cashier Books

2 ... ... Token Book

3 ... ... Paying Cashier Book

4 ... ... Scroll Books

5 ... ... Cash Balance Book



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Clearing Department

All commercial banks are the members of the banker’s clearing

house which facilitates the settling of daily balances due between member banks arising from the cheques and cash transactions

throughout the country, whether by the general public or individual

banks.

Clearing

is the transfer of funds from one branch of bank to the

other branch of the same bank or the other bank on which the

instrument is drawn, without involving the cash through state bank’s clearing house.

Clearing house

is the place where both the debtors and creditors are different commercial banks and they settle their claims.

There are two types of clearing:

Inward Clearing

It means cheques which are drawn on our bank but

are presented to the branch of another bank and on our branch but

with in the city. These cheques are handed over to NBP agent in

clearing house. Inward clearing results into outflow of cash.

Outward Clearing

It means the cheques of another bank, which are

presented on our branch by our customers. Outward clearing

results into inflow of cash from the payee bank.

TTYYPPEESS OOFF CCHHEEQQUUEESS CCOOLLLLEECCTTEEDD

(1) TRANSFER CHEQUES



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Transfer cheques are those cheques which are collected and

paid by two different branches of the same bank situated in the

same city.

(2) CLEARING CHEQUES

Clearing Cheques are those cheques which are drawn on

the branches of some other bank of the same city or of the same

area which covers a particular clearing house.

(3) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on

the branches of either the same bank or of another bank, but

branches are not in the same city or they are not the members of

clearing house.

(4) TRANSFER CHEQUES

Transfer cheques are those cheques which are collected and

paid by two different branches of the same bank situated in the

same city.

(5) CLEARING CHEQUES



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Clearing Cheques are those cheques which are drawn on

the branches of some other bank of the same city or of the same

area which covers a particular clearing house.

(6) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on the branches of either the same bank or of another bank, but branches are not in the same city or they are not the members of clearing house.

Bills Remittance Department

‘Remittance’ means sending money from one place to another

place. So National Bank Of Pakistan provides number of services to

transfer money from one place to another place. These services

include Demand draft, Telegraphic transfer and Mail transfer. Bills Remittance Department also works on Payment Orders and Short

Credit.

1. Demand Draft

Draft is an order to pay money, drawn by one

office of a bank upon another office of the same bank for a some of

money payable on demand. Drafts are commonly used to remit

money to parties both domestic and foreign. It is the cheapest way to remit money over long distances. Demand draft is just like a

cheque which is drawn by one bank branch on another branch of

the same bank. The bank has a primary and direct liability to pay

drafts.

2. Telegraphic Transfer



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Telegraphic transfer (TT) happens or

activate when any client or account holder wants urgent payment to

its respective party, which is out of city premises. This TT is done through fax and takes very less time.

3. Mail Transfer

Mail transfer is the inter city transfer of money

between two branches of a bank, through mail (currier). It is faster

mode of transfer money than demand draft.

4. Payment Orders

If the client or account holder wants to make

payment within the city, then this done through P.O. It can only be cancelled with the consent of both parties.

1. For NBP Account Holder Rs. 50/- (Flat)

2. For NBP Non-Account Holder Rs. 100/- (Flat)

Rs. 25/- (Flat) from

student for payment

of fee favoring

educational

institution

b. Issuance of duplicate Pay order

1. For NBP Account Holder Rs. 100/- (Flat)

2. For NBP Non-Account Holder Rs. 150/- (Flat)

5. Short Credit



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Short Credit is also known as Inter- City transfer.

Bank receive cheques of other banks out side the city. Bank

transfer these cheques through inter city transfer.

Deposit Section

Deposits are referred to as the ‘LIFE_BLOOD’ of the bank. The fundamental function of a commercial bank is the acceptance of

deposits. Banks accepts deposits from those who have surplus

money in their hands but they are unable to make use of it. When a

bank receives a deposit from customer, the relationship of debtor and creditor established whereby a customer becomes the creditor

and the bank becomes debtor. The amount owned by the bank

must be payable to the depositor on demand or after some time.

Deposit Section in a bank deals with the acceptance of deposits and payment of cheques.

LEDGERS OF DEPOSIT DEPARTMENT

The following types of ledgers are concerned with deposit

department:

1) Saving Ledgers

2) Current Ledgers

3) Profit and Loss Sharing Ledgers

4) Fixed Deposit Register

5) Cash Book

6) Daily Profit and Loss Summary Book

7) Voucher Register



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DIFFERENT TYPES OF ACCOUNTS OPERATED BY

NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits.

1. Current deposits

2. PLS Saving deposits

3. Fixed deposits account (Time Deposit)

4. Foreign Currency Account

1. CURRENT DEPOSIT

For current deposits NBP open the account in the name of individual proprietary

firms, partnership firm, private limited companies clubs, association societies and

other institutions. The account can be operated by single or two more persons

jointly as the instructions may be given at the time of opening the account.

If the person who wants to open the account is not in position to sign or

signature is not firm or shaky the bank requires is photographs and he has to

come in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the account usual not be

less then Rs.1000/-

But this restriction is not imposed to the accounts of charitable institutions.



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2. PLS SAVING ACCOUNTS

The salient features or profit and loss sharing saving accounts to be

opened in NBP as under.

1. These accounts can be opened by individuals in their own single

are joint name. The PLS saving accounts can also be opened for

provident fund or other benevolent funds of companies, firms,

organizations of welfare and educational institutions.

2. PLS saving account can be opened with an minimum amount of Rs.

500/- only

3. Money can be with drawn form PLS saving account only through

cheque.

4. To share in the profit a minimum balance of Rs.500/- must be

maintained a account. The minimum balanced on sixth and last of

month will qualify for the profits.

5. The profit will be calculated on the basis of monthly minimum

balance for the period of six months i.e. from January to June and

July to December



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6. The head office of NBP determines the profits or loss on PLS saving

deposits and advice its branches the rate and time of distribution of

these profits concerned PLS saving account.

7. They shall be no restrictions on maintaining the maximum balance

in PLS saving account.

8. On the fist of Ramzan every year the Zakat 2.5% will be recovered

from the deposits on the balance of that day. But if depositors give

declaration of Zakat or he is non-mulsim no Zakat will be recovered

from him in the same day Zakat is not recovered from account in

which the balance are below upto prescribed limit as declared by

the administrator of Zakat Pakistan Act system of accepting

deposits has been stated in NBP since 01-01-1981.

3. PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSIT

A/C

In the case of fixed deposit account deposit is made for a fixed period

and a money deposited can be with drawn before the expiry of period fixed or

before giving an advance notice to the Bank. Fixed deposit caries a higher rate of

interest than the other type of bank account and the rate of interest rises with

the length of the period and the amount of deposit.



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One opening a fixed deposit account the bank grants to the depositor a fix

deposit (FDR) which is not transferable to any other person. When the depositor

with drawn the receipt must be handed back to the bank

The salient features of profit and loss sharing term deposit excepted by NBP are

given as under.The PLS term deposit are accepted from individual in their own

single or joint names, companies firms and other organization.



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1. The PLS term deposit receipt are issued for any amount. There is

minimum or maximum limit or deposits in a single term deposit account.

2. The term deposit can be made by tendering cash only.

3. Under term deposit scheme the depositors not cease to earn the profit

immediately, after the respective maturity date, but they have been

affording a liberal facility. In case the depositors said to with draw their

terms deposits on maturity their funds will remain temporarily in used and

on profit earned a responsible share would occur to such over due PLS

terms deposits at the rates declared on PLS sharing account.

4. The head office of the bank determine the profit or loss on PLS terms

deposit at by any one intervals i.e. the end of June and December each

year and payment of profit to or deduction of loss if any from the PLS

terms deposit is to be made the deposits for longer period will earn a little

more profit then those of shorter period deposits.

5. The total profit upto Rs.950/- is exempted from income tax

6. In the case of encashment before maturity but after completion of

months profit will be paid for the entire period for which the deposit

remained with bank at the rates payable for the respective period to the

PLS saving account after deduction of the Zakat if any.

7. In PLS term deposit expired and the depositors request with in one month

after the expiring date, for investment. The PLS terms deposit will be



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reinvested for the desire period from the date immediately following

expiring date.

8. Zakat or the face value PLS term deposit will be recovered as many times

as the valuation dates (i.e Ist Ramzan) falls between the date of issue and

the date of expiry of the deposit.

4. FOREIGN CURRENCY ACCOU

NBP has also introduced foreign currency accounts for Pakistan and

foreign Nation in Pakistan and abroad. This scheme assures its

customers on better profit and superior service.

1. It offers Pakistani or foreign National to operate a foreign currency A/C

with any one of their authorized branches spread all over the country.

2. Deposits of this accounts will be acceptable in all convertible currency but

account will be maintained on the customers choice in US Dollar, pounds

German Mark or Japanese Yen.

3. Deposits may be made in the forms of remittances in foreign currencies.

FOREIGN EXCHANGE DEPARTMENT

1). Imports

We sell our foreign exchange to the other country which is

called such as we purchase the foreign goods from the others. Import is done

through letter of credit (L/C) by the importer. Letter of Credit is an

undertaking given by the importer bank to the exporter’s bank.



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2). Export

Export is to sell our goods to the other country and earn foreign

exchange. The bank provide facilities of exporting the commodities to the

manufactures of the goods of the country.

3). Foreign Remittance

The bank provides the foreign remittance facilities to the

student studying aboard. Bank also provides foreign exchange in the shape

of travelers cheques to the intending visitors.

The NBP has over 1400 branches at home and abroad of these more than 100

branches are authorized and fully equipped to deal with all kinds of foreign

currency transactions.

NBP has worldwide network of branches and it has associated in Arabia bank, All

Jazria (26 branches) and national exchange company in UAE to facilitate the

customers in Pakistan, Saudi Arabia and UAE.



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GENERAL

BANKING



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Demand Draft

Draft is an order to pay money, drawn by one

office of a bank upon another office of the same bank for a some of

money payable on demand. Drafts are commonly used to remit

money to parties both domestic and foreign. It is the cheapest way to remit money over long distances. Demand draft is just like a

cheque which is drawn by one bank branch on another branch of

the same bank. The bank has a primary and direct liability to pay

drafts.

PROCEDURE OF ISSUANCE OF DEMAND DRAFT

Bank receive a written request from a customer to issue a

demand draft on bank’s standard form.

Amount of DD & exchange has to be deposited by the customer either in form of cash or cheque.

Amount of exchange is as per bank’s schedule of charges.

Minimum amount is Rs. 50/- and 10 paisa per thousand upto

Rs.100000/- AND Minimum Rs.100/- & 5 paisa per thousand on amount of DD more than Rs.100000/-

Now we issue DD with due care, all details are clearly

mentioned on it. DD # mentioned on application form. After

signed by officer it handed over to customer after taking his

signatures on back of the application form. After issuance of DD we make DD Advice(F-120). Recording is

made two registers one is DD issue register and other is DD

advice issue register covering all details like date, applicant

name, person in whom favor DD is drawn and addressed branch of NBP.

Now we fill fanfold (F-15) Both debit & credit voucher signed

by officer and send debit voucher and DD advice to respected

branch through NIFT. Credit voucher and application form is remains with the branch.

We pass entry as



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Cash Account (amount of DD + exchange)

NBP General Account

Exchange Account

Telegraphic Transfer

Telegraphic transfer (TT) happens or

activate when any client or account holder wants urgent payment to

its respective party, which is out of city premises. This TT is done

through fax and takes very less time.

PROCEDURE OF ISSUANCE OF MAIL TRANSFER


Mail Transfer on bank’s standard form. Amount of MT & exchange has to be deposited by the

customer either in form of cash or cheque. Bank receive Rs.

75/- over and above the amount of exchange in DD.

Now we issue MT with due care, all details are clearly mentioned on it. MT # mentioned on application form.

When MT is issued the issuing bank send debit voucher(F-15)

and original MT document to NBP branch in whom favor MT is

drawn.

After issuance of MT we record it into DD,MT,TT issue register.

On receipt of MT from any branch officer check the authorized

signature of the officer who issue in NBP secret employee

code book. This helps him to verify the authenticity of MT.

Mail Transfer

Mail transfer is the inter_city transfer of money

between two branches of a bank, through mail (currier). It is faster

mode of transfer money than demand draft.

PROCEDURE OF ISSUANCE OF PAYMENT ORDER


payment order on bank’s standard form.



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Amount of PO & exchange has to be deposited by the

customer in form of cash. Amount of exchange is as per

bank’s schedule of charges. After Submission of cash we issue a Payment Order after

filling all particulars of PO. Payment order number must be

written on the application form for recording purposes.

Payment order is handed over to the customer after taking signature of a customer at the back of the part of PO in

payment order book.

SSEECCUURRIITTIIEESS

IINN

NNBBPP



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SSeeccuurriittiieess

(1) BANKERS’ LIEN

(Moveable property possessed to the lender cannot be sold in case of default)

Lien is the bankers‟ right to hold the property until the claim on the

property is paid. The bankers look at their lien as a protection against loss on

loan or overdraft or any other credit facility. In ordinary lien, the borrower

remains the owner if the property, but the actual or constructive possession

remains with the creditors, though he has no right to sell it.

(2) GUARANTEES

When an application for an advance can offer any tangible security, the

banker may rely on personal guarantees to protect himself against loss on

advances or overdraft to the applicant.

(3) MORTGAGE

(Immoveable property possessed to the lender can be sold in case of default)

A mortgage is the transfer of an interest in specific immoveable

property for the purpose of securing the payment of money advanced or to be

advanced by way of loan, and existing of future debt, or the performance of



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an engagement, which may rise to a particular liability. The person in whose

interest the property is transfer is called mortgagee.

(4) HYPOTHICATION

When property in the shape of goods is charged as security for a loan

from the bank, the ownership and possession is with the borrower, the goods

are said to be hypothicated. The essence of hypothecation is that neither the

property in goods nor the possession of them passes to the lender, but the

security is granted by means of letter of hypothecation which usually

provides for a banker‟s charge on the hypothecated goods.

(5) PLEDGE

In a pledge, the ownership remains with pledger (borrower), but the pledgee has the possession of property until the advance is repaid in full. While in case of

defaulter, the pledge has the right of sale after giving due notice.

PRODUCTS



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In

National Bank Of Pakistan

NBP SERVICES

National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk

Management Group. The role of the Financial Institution Wing is :-

To effectively manage NBP‟s exposure to foreign and domestic correspondence

Manage the monetary aspect of NBP‟s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank‟s profitability

Generation of incremental trade-finance business and revenues

NBP offers



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The lowest rates on exports and other international banking products

Access to different local commercial banks in international banking

Monthly Income Scheme

Minimum deposit of Rs. 50,000 and a maximum deposit of Rs. 5,000,000 for 5 years

Free Demand Draft, Pay Order and NBP Online Aasan Banking*

Free Cheque Book / NBP Cash Card (ATM + Debit)

It is PLS Saving Account Minimum saving balance of Rs. 20001

& maximum balance of Rs.300000.

free NBP cash card(ATM+debit)

convenience of NBP Online Asan Banking two debit withdrawls allow in a month.

Profit calculated monthly and paid on half yearly basis.



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n eNBP

STUDENT

LOAN

SCHEME



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Student Loan eNBP STUDENT LOAN SCHEME

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech, a STUDENTS LOAN SCHEME (SLS) for Education was launched by the Government of Pakistan in collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the Scheme, financial

assistance is provided by way of Interest Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan.



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The Scheme is being administered by a high powered committee comprising Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks and Deputy Secretary, Ministry of Finance, Government of Pakistan.

ELIGIBILITY

Under the scheme the students are eligible to apply for loans provided:

1. He/she has obtained admission on merit in the approved universities/ colleges of the public sector mentioned hereunder.

2. he/she falls at the time of admission within the age bracket of:-

For Graduation Not exceeding 20 Years For Post-Graduation Not exceeding 30 Years For Ph.D Not exceeding 35 Years

3. He/she has secured 70% marks in the last public examination 4. he/she has undertaken the study of the subject given below 5. he/she is unable to pursue studies due to financial constraints.

TYPES OF LOAN

The loan facility will be available for entire duration of the study for:-

Schedule Fee Paid directly to the Boarding expenses excluding meal charges Procurement of textbooks--- Disbursed directly to the student

REPAYMENT

The maximum period of repayment of loan is 10-Years from the date of disbursement of first installment .The borrower shall repay the loan in monthly installment after six months from the date of first employment or one year from the date of completion of studies, which ever is earlier.

Under the Scheme, loans are available in the following subjects.

i) Engineering ii) Electronics iii) Oil Gas & Petro-Chemical Technology



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iv) Agriculture i) Medicine ii) Physics

iii) Chemistry iv) Biology, v) Molecular Biology & Genetics ix) Mathematics x) Other Natural Sciences xi) DAWA and Islamic Jurisprudence xii) Computer Science/Information

System and Technology including hardware. xiii) Economics, Statistics and Econometrics Sciences xiv) Business Management xv) Commerce

OTHER INFORMATION

Applicatio form are available from the designated branches The students desirous of availing loan under the Scheme may apply on

prescribed form for financial assistance subject to he or she has got admission on merit through normal procedure in the Universities/ Colleges afore-mentioned.

Applicants are required to submit/send their applications on the prescribed form, duly completed in all respect, to the designated branches indicated against each University/College by the given date. Incomplete application is not be entertained.

Students who have availed this facility in the last / previous year(s) need not to apply.

Schem eNBP SAIBAN



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Product Items

Home Finance Home Renovation

Home Construction Purchase of Land + Construction

Balance Transfer Facility (BTF) Eligibility

Must be Pakistani Resident (National) Aged between 21 and 65 years at the time of application/disbursement of

loan. Salaried Person, Self-employed professionals and businessmen. Property located in NBP approved localities.

Service duration: Two years for salaried class Three years for self-employed/business class.

Required Documents With Applications Form

• Two attested passport size photographs • Two attested copies of your National Identity Card • Cheque for the processing charges

Property Documents



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Any title document available (other documents may be required)

1) FOR SALARIED PERSONS, WHOSE SALARIES ARE DISBURSED THROUGH NBP BRANCH

• Employer Undertaking for remittance of salary at relevant NBP branch for credit to customer‟s account (to be provided at a later stage, format available at relevant branch) • Employee ID Copy attested by NBP Branch (where applicable) • Attested copies of last three (3) months salary slips

• Attested copies of last three (3) months bank statements

2) FOR SALARIED PERSONS OF MNCs AND NBP APPROVED COMPANIES

• Employer Undertaking duly attested by relevant NBP Branch, where applicable (to be provided at a later stage, format available at relevant branch) • Attested copies of last three (3) months Salary Slips • Letter of Verification of Employment on Company Letterhead mentioning the date of joining • Attested copies of last three (3) months bank statements

3) FOR OTHER SALARIED PERSONS

• Letter of Verification of Employment on Company Letterhead mentioning the date of joining • Attested copies of last three (3) months Salary Slips • Attested copies of last twelve (12) months bank statements • Attested copies of last three (3) months paid bills for electricity and telephone OR copies of last (12) twelve months credit card bills (which ever is available)

4) FOR BUSINESS PERSONS



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• Bank Certificate stating applicant maintaining Business Account and the date of account opening

• Attested copy of latest Form 29 in case of Private or Public Limited Company • Attested copy of Partnership Deed (where applicable)

• Attested copy of current professional association membership/practicing certificate. Adequate proof of professional engagement like bank certificates • Attested copy of Partnership Deed (where applicable)



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ACCOUNTING

PROCEDURES

TO BE

FOLLOWED BY

NBP



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SUSPENSE/SUNDRY DEPOSITS ACCOUNTS AND OTHER SUNDRY LIABILITY ACCOUNT

Under bylaw 6(b) of the banks byelaws not more than two suspense

accounts(I-e accounts in which items, which cannot be passed at once into

their proper accounts are in the meantime debited or credited) shall be kept

at any controlling office or branch. The only accounts of this nature

allowed are,therefore,suspense account for debit item held in suspense ,and

sundry deposits accounts for credit items. the former being a general ledger

account and the latter a current account

.

The sundry deposit account is subdivided into two categories namel;y,:Other

Sundry Liability Account: and :Sundry Deposit Account:. In other words

Liability account only items other than deposits would be entered. The

balance outstanding in these two accounts at the close of each week shall be

reported in the scheduled telegram against the existing codes I-e

Sundry deposit account N109B and other sundry liabilities account N113b.A

subsidiary register B-12 on the pattern of the sundry deposits account register

shall be maintained as other sundry liability register. Entries are however, not

to be made in these accounts in regular course of business, but only in cases

when due to some reasons ,the amount could not immediately be credited to

their proper accounts. Such entries would be of temporary nature. Amounts

temporarily credited to sundry deposits accounts/other sundry liability account

are to be reversed at the earliest moment so that outstanding is cleared undue

delay.

Adjusting accounts



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Expenses payable but not paid; The entries passed under different heads of charges are on reversal, individually carried ouyt in the general ledger are subsequently when the relative bills on receipts are sanctioned for payment by competent authority, shall be paid by debit to other sundry liability account .Whenever it is felt that bills under a particular head for which provision has been made at the end of the year have been paid and the amount provided for was in excess of the requirement ,the balance should be credited to the charges account. All vouchers on suspense accou=nts and all debits to sundry deposits account must be signed by the operations manager singly up to the amount of Rs 5000/- for cash and Rs 10000/- for transfer ,and jointly with his second officers for amounts exceeding theses limits.Other supervising officials at the managers discretion may pass credit entries in sundry deposit account.The recipients of the money must properly receipt all debit vouchers for cash payments and on transfer debits particulars of disposal must be recorded. Full particulars of all orignal items will be entered in the suspense account or sundry deposits account register B-11 or B-12 as the case may be.When entries in these accounts are reversed ,the dates of the reversing entries must be entered against the orignal items and initialed by the manager .Full particulars of reversing entries vmust be written on the vouchrs but need not be entered in the registers, the words entry reversed and the date of the orignal items being sufficient. All branches where there are only a few entries in the sundry deposits account, a sundry deposit account register may be dispensed with provided all reversing entries are passed by the manager in the ledger account,in which full particulars of original items must be written,the dates of all contra items entered and each individual entry initialed.When sundry deposits account register is maintained only the daily debit and credit total be posted in the ledger account. Temporary running finance must not be debited to yhe suspense account .Refer to the temporary running finance instructions. Suspense account for meeting entertainment expenses which are paid strictly reimbursed basis advance payment in respect of rent of branch premises as well as rent ceiling provided to the banks; officers (should be debited to the general ledger head prepaid rent account),advance deposits made to the post offices,telegraph,electric supply companies gas supply companiesetc,(should be debited to general ledgere head advance deposit accounts) and expenses of law charges,stamp fees and expenditure incurred in respect of borrowers cases in courts (should be debited to respective subheads of charges accounts)



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Sundry deposits accopunts should be used only for items ,and the entries therein must be kept to a minimum .Bills proceeds received late in the day should ordinarily be credited to proper accounts even if it is too late to dispatch the relative advice the same day and the amounts for which payment orders have to be issued should be credited direct to the payment orders account. On the last working day of each month except December branches will forward a detailed staement on form F-47 of all items outstanding in suspense account at the beginning of the month and all entries ,debit and credit ,passed during the month to their concerned office. A detailed statement on form F-48 of all items outstanding for over 6 months in sme deposits account will be forwarded to the controlling office at the end of each month except December.Aggregates of the remaining items should however be added to the total of the detailed items so that the ultimate total agrees with the balance.Annually on the 29th june or the previous working day ,if that day is a holiday ,amounts outstanding in sundry deposits account for more than three years will be transferred to an office account Managers must see that all outstanding in suspense account and sundry deposits accounts clreaed as soon as possible,and will therefore ,personally check the outstanding amounts atleast once in a week. Entries made in suspense account on account of tax at source advanced paid receivable advance expenses on new branches ,advance rent payment ,legal expenses,mark up/service charges recovered,Qard- e – hassana for marrige may be classified as other assets .



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HUMAN RESOURCR POLICIES

AT

NATIONAL BANK

OF

PAKISTAN



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HUMAN RESOUCE POLICIES AT NATIONAL BANK OF PAKISTAN

1- RECRUITMENT POLICIES AND PROCEDURES;

In NBP recruitment is done purly on merit.An organizational wide culture of

meritocracy is found in NBP.Recruitment is done centrally or locally both and it

hire employees from two sources

o Internal hiring

o External hiring

Internal hiring is the most economical way of hiring employees it uses minimum

resources and efforts to get required workforce within the organization.Data is

obtained from the database of NBP maintained at head office in Karachi.

While external hiring is resorted in such a situation when its difficult to find out

required workforce from within the organization ,it involves a plenty of time and

considerable amount of resources.NBP follows both the ways depending on the

circumstances.



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.As main Human Resource Department is in Karachi so normally hiring is done

from Karachi HRD.A database has been maintained over there in which a pool has

been created out of which short listed candidates are supposed to appear in the

written test(arranged at different cities at convenient and easily accessible places of

main cities I-e Karachi,Islamaabad,Lahore,Queeta) and after that successful

candidates are required to go through interviews (Panel interviews). Selected

candidates are then appointed to the posts and are assigned their respective duties

EMPLOYEE ORIENTING

It is a procedure for providing new employees with basic background information

about the organization. So all new employees are provided information about the

working environment, working hours and vacations.It may be an informal

introduction or a lengthy formal courses.NBP always exibits a warm and

cooperative attitude towards new employees and welcomes them.

SOME OTHER WAYS OF RECRUITMENT ADOPTED BY NBP

.NBP also follows many other ways of recruitment they are not always alternative

to one another rather most of the time these are complementary to each other .Here

are some of them ;

i) College recruitment

ii) On site visits

iii) Referrals and walk ins

iv) Recruitment via internet

INTERNSHIPS



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NBP also offers internships to the students and fresh graduates in all its branches.A

complete procedure is observed to allow people to intern in NBP.A formal request is

made by the internee which is approved by head office .A secrecy bond is signed by

the internee in which internee undertakes that he/she will not misuse any

information obtained from the records ,he wll obey bank rules and regulations ,will

not divulge and information about the bank or its clients,staff members,will not

obtain any benefit from the information which may come within his/her knowledge

during the course of training in NBP.The entire transaction and information will

be kept by as strictly confidential.

PAY PACKAGE,BONUSES AND REWARDING CRITERIA

NBP is an Equal Opportunity Employer meaning thereby that it offers its employees

absolutely competitive pay structure including other fringe benefits like house

loan,car loan,marriage loan and bouses as well.NBP announces two bonuses each

year one at the half year closing I-e 30 th june and second one at the end of

calender year I-e 31st December.Besides these bonuses NBP also disburse two EID

BONUS at both eids and including all theses sometimes during a year SURPRISE

BONUS is also awarded to its employees ,hence NBP motivates and appreciate

positive contribution made by its employees ,NBP apprise and evaluate output of its

employees and pay them reward and in case of any undesirable outcome it punishes

its employees as well. This practice helps to maintain the morale of the employees

high and to inculcate a feeling of check in their minds as they know that their work

is going to be rewarded or punished so they make their efforts accordingly.

TRAINING AND DEVELOPMENT OF THE EMPLOYEES;

A continuous process of training and development of its employees is the tradition

of NBP. Its employees have to undergo a training process.This traning is of both

types;



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i. On the job training

ii. Off the job training

On the job training means training a person while he is working on it.Different

techniques are used for thisw purpose like;

1. Job rotation

2. Job enlargement

3. Job enrichment

4. Action learning

Job rotation means NBP moves a trainee from department to department to broaden

his/her experience and identify strong and weak points.While job enlargement and job

enrichment techniques are used by NBP by giving extra tasks to be performed by the

employee and hence learning through doing different tasks.On the other hand NBP uses

action learning is used to train employees by allowing them to work full time analyzing and

solving problems in other departments.

Besides this training other refresher courses are also arranged to impart latest knowledge

and modern practices to its employees in order to make them up to the date.



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SWOT ANALYSIS

SWOT ANALYSIS

An analysis indicating towards organization strengths, weaknesses,

opportunities and threats is termed as SWOT Analysis”. Such an

analysis is very important for the management in retaining the

strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and craving ways to successful tackle with the

threats and ultimately converting them in the strengths for the

organization



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During eight weeks of my stay, I have come across the following

SWOT analysis of the bank

STRENGTHS

Strengths are those activities the organization does well or the unique

resources that it has. The strengths of SPCBL are given as follows:

The Keeping Of A Good And Modest Environment During

Business Hours.

The bank has a good team of customer relation managers and

customer relation officers to help the people.

Systematic working operations. The credit administration department enjoys a staff of very good

business executives who attract and analyze people in a very

good manner.

A good dressing of employees and their attitude towards the people

A Good System Of Communication Flow Is There

The Keeping Of A Good And Modest Environment During

Business Hours. The Commitment Of Employees Towards Secrecy.

WEAKNESSES

The internal issues include certain weaknesses which are discussed below:

There Is Lack Of Proper Advertising.

Higher Charges of Some Services As Compared To Some Other Banks.

All Branches are not On Line

No ATM facility available

Employee’s turnover is higher.

All Branches are not dealing in foreign exchange.

OPPURTUNITIES



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Stronger and deeper relationships with existing and potential

customers.

Cross selling of other Union Bank Products. Committed employees due to payment of higher salaries.

Government patronage

A good job recruitment policy of hiring business graduates.

THREATS

Pakistan Is A Developing Country And Our Debt-Burdened Economy Is A Major Threat For The Banking Business.

High probability of competitive reaction

Foreign banks may increase marketing support and aggressive

sales drive.

Launch of similar products by large nationalizes banks with extensive distribution network.

Political Condition

The Employee Turnover Can Create A Serious Problem For The Bank.

Problems faced by the Bank

I have done my internship in National Bank Of Pakistan, During

the course of my internship I observed some deficiencies in the banking operations. Some dilemmas faces by bank is as follows:

NBP still following the old methods and techniques which are

not up to the mark. Most of the work done manually which is not reliable in future. Computer facility is not available.

All branches of national bank of Pakistan are not online, which

badly affect the operations of bank branches.

There is lot of burden of work on bank staff. One person handles many things, which affect the efficiency of that

person.



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Overall timings of entrance into the office for the employees

are very strict but there is no time for them to leave the office

and no over time is paid to them which may be a significant reason of dissatisfaction for their jobs.

During my internship I realize that bank needs young and

experienced new staff to meet technology and global challenges.

Many of National bank customers are illiterate and retired

servants so bank officers face much difficulty in handling

them.

No proper customer services department is available in the

branch. There is no information counter in the bank, so

customer also face difficulty regarding financial matters.

Deficiency in adopting new standards of marketing to strive in

this competitive era.

Job rotation is very important for sound environment and

communication purposes but there is lack of job rotation in

the bank.

I also observed some social problems with women workers in

the bank.

Internship programme of National Bank Of Pakistan is not satisfactory.

The behavior of staff towards internee is not well. They do not

tell enough to the internees about typical banking operations.

Staff working in the bank is not properly trained according to

the modern banking requirements. they are usually old age

and working from longer period of time.

There is no satisfactory training system of existing

employees.

Recruitment policies of the bank is very tough which does not motivate young and fresh graduates to serve bank.



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The research cell should be formulated and it should

continuously try to gather information about the present actions of its competitors and the expected future actions. So in this

way more effective strategies can be formulated.

Bank is a service industry; people normally prefer those

banks where they feel comfort and get best of the services,

so such strategies should be adopted by which the services

enhanced and attract more customers. NBP should give

proper attention on staff training and should provide the facility not only in Pakistan but also in abroad. Every year

some of the employees should be sent for training to other

countries.

Different training programs should be arranged for On the Job

employees so that they can work according to the global

requirements of modern banking.

All the branches of NBP should be Online so that there is no

delay of services to the customers.

Bank should take reasonable steps to improve consumer banking.

The world has become now a global village. So NBP must

chalk out its global customers and their needs. Bank policy should be designed to satisfy not only local customers but

also helpful for outsiders. Bank policies

All departments in the bank should be computerized so that officers can save time and make their jobs easier.

Bank should recruit new persons for better management.

They must be trained and use to with new technology needs.

Bank should appreciate female workers at high level

management.



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Managers and other top level employees should adopt proper

strategy to minimize communication gap among staff

members.

Bank should formulate an attractive internship program to

motivate new generation.

In order to increase the performance of employees

management should evaluate employee’s performance and

give extra incentives to them



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FINANCIAL HIGHLIGHTS OF NBP SAMANABAD BRANCK

Current Account Balance 24711639.74

PLS Saving Account 263572098.22

Interest Account Balance 7846915.09

Demand Finance Account 15377268

Debt Total 113019527.51

Advance Salary Debit 3704034.62

Small Finance Account Debit 20946400.89

Payment Order Account 987072

DD Account 62987.50

Saving Rate 1.2%semi annually

MIS (monthly income scheme) 3.3%

Premium savor 7.2%



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Total Branch Deposit 300M

Work Done By Me

In NBP I worked in following departments;

Account Opening Credit/Advances Pension Accounts

My primary focus in 6 weeks duration was on Credit/Advances department. I spend most of my internship period in that department. I worked for “President Rozgar Scheme” and used to deal with customers who come there to take advantage from this scheme. Different

people used to come there who were unemployed and want to start their new and personal business. From this department I learn that a banker must;

Know how to deal with customers Know how to convince & satisfy them Have knowledge about the product Be very confident before his/her client



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Account Opening Department

The opening of an account is the establishment of the banker customer

relationship. By opening an account at a bank a person becomes a „customer‟ of

the bank.

Account Opening at NBP

As the opening of an account is of crucial importance for a bank, great care

should be taken in this matter. NBP has specified the rules and procedure for

opening on account which are strictly abide by all its branches.

Responsibilities of Account Opening Department

Account opening



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Documentation at the time of opening of an account

Issue cheque book

Closure of an account

Account opening

Whenever a new customer enters in the bank with the intention to open an

account, the banker is required to determine his/her category according to his

status and needs. NBP has following categories of accounts:

Individual Account

Joint Account

Minor Account

Sole proprietor Account

Partnership Account

Company Accounts

Accounts of the Welfare/ Societies/Clubs/ NGOs

Documentation:

Each one of these account has different requirements with regard to the

documentation. But the documents which are common in all these

categories are:

Computerized National Identity Card (CNIC) of the applicant

Introducer - the person should be the account holder of the NBP (same or

any branch) from last six month and maintaining his/ her account

regularly.

Individual Account

This category is further bifurcated into following sub-categories:



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Business Account

Student Account

Salaried Person

Household Women

All these persons are required to fill the same account opening form. The only

difference comes in case of the supporting documents.

In case of the business account the great care should be taken in inquiring the

source of the income. The business proof of the customer is required in shape of

the visiting card or the letter head.

In case of the student account the college card and the bonafide certificate from

the institution is demanded by the bank.

For salaried person employment proof is asked at the time of opening an

account. The salaried person is required to provide Appointment Letter so that

the banker can know about the joining date, salary and designation of the

potential customer.

While opening the account of household women the routine documentation is

done. But the important thing to inquire and consider is that what will be the

source of the transaction in this particular account. The banker should be

prudent enough to see and point out any unusual volume or number of

transaction in this account.

Joint Account

Any number of persons can open a joint account. There is no limit on the

maximum number of the persons in a joint account. Every person is required to

fulfill the same requirement as mentioned under the head of the individual

account in the personal capacity.



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Sole Proprietor Account

NTN No. – which should clearly mention the business name, client name

and address of the business place

Request for the account opening on the Letter head of the business

Business stamp

Partnership Account

NIC of all partners

Partnership deed attested by the Notary Public

NTN certificate

Form- C (if partnership is registered)

Rubber stamp according to following format.

Business Name

Partner

Company Accounts

NIC‟s of all the directors

Rubber stamp according to their designation

List of director attested by chief executive

Resolution of the board of director to open bank account (on bank format)

Form 29 duly attested by SECP:

This certificate contains the details of directors and officers including

Chief Executive, Managing Agent, Secretary, Chief Accountant and

Auditors and Legal Advisor.

Article of Association(AOA) / Memorandum of Association(MOA)

NTN



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Certificate of incorporation

All the above documents should be sealed and signed (with stamp) by

company secretary.

Minor Account

CNIC of Guardian

Business/ Employment Proof of Guardian

Bay Form/ Birth Certificate duly original seen by Attorney holder

Date of majority of the minor should be mentioned on AOF & SSC

Only personal information of guardian on AOF. No information of minor

on AOF.

No signature of minor on account opening documents

Title of account should

Minor Name (M)/ Guardian Name (G)

(M=Minor, G= Guardian)

Stamp affixed on Account opening form and signature specimen card.

GUARDIAN WILL OPERATE THE ACCOUNT EVEN IF MINOR

ATTAINS MAJORITY.

Guardian can operate the account after majority of the minor as mentioned in

the stamp.

Accounts of the Welfare/ Societies/Clubs/ NGOs

Resolution (Name & signature of authorized signatories along with CNIC

numbers and operating instructions)

CNIC



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By- laws

Registration certificate

List of governing bodies

Legal opinion

Approval form Area Manager and System Operations.

Types of Accounts

NBP is offering different types of accounts which are designed considering

the needs of different types of customer. The different entities discussed

above can open any of the following account:

CURRENT ACCOUNT

It is the most demanded account in any bank. Individual partners, companies

associations, clubs, societies, and NGOs are eligible to open current account.

Here are some features of the current account offered at NBP

Non interest bearing checking account.

Minimum account opening requirement of Rs.10, 000 only.

Free debit card can be used to withdraw cash and make purchases at

thousands of outlets across Pakistan.

This account can be opened in foreign currencies also.

No restriction on number of withdrawals and on number of deposits

Minimum average balance Rs.10,000/-



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Rs.100 will be deducted in case of balance maintained below the

minimum limit of deposit.

No Zakat deduction.

PLS SAVINGS ACCOUNT

This account helps the customer to earn a handsome amount on their saving.

Any one or more individuals or partners can open a PLS saving account with

the Bank.

Profit & Loss Sharing Saving Bank Account.

Minimum account opening requirement of Rs.5, 000 only.

No restriction on number of withdrawals and number of deposits.

Profit on PLS saving account is calculated on minimum monthly

balance basis.

Profit on saving accounts is credited to the customer account on half-

yearly basis.

Profit rates are subject to charge in response to change in the return

earned by the Bank on deployment of funds.

Free debit card can be used to withdraw cash and make purchases at

thousands of outlets across Pakistan which provides access to funds 24

hours a day.

The charges for maintaining the minimum balance in the account are

Rs.50 per month.

Saving account can be opened in other currencies also i.e. in Euro,

Pound Sterling, U.S Dollar etc.

Zakat is deductible on balance in this account otherwise an affidavit is

provided by the customer.



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Procedure of Account Opening

A. Account Opening Form

The first step in the procedure of opening an account is the filling of Account

Opening form. At NBP the account opening form is titled as the Relationship

Contract. This relationship contract becomes the binding for both the banker

and customer. It contains all the requisite information needed to open and

operate an account according to the specified rules and regulations.

Contents of Account Opening form

The following details are required to furnish the Relationship Contract.

1. TITLE OF ACCOUNT:

It is the name through which the customer is intended to operate an account.

2. ACCOUNT NUMBER:

It is the serial number given to each account at the time of opening an

account. This is the number through which an account is accessed whenever

it is needed.

This serial number starts from a Code, which is different for different types of

accounts. These codes help the banker to identify type of an account an

account at first sight.

The following is the list of codes for different types of account used at NBP.



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Current Account

Saving Account

Royal Profit Account

BBA Account

USD Account

Euro Account

Pound Sterling Account

3. PERSONAL INFORMATION

After giving the title to the account, the personal information of the customer

is written down in the Account Opening form, like Name, Father‟s name,

Mother‟s name, Employment information (Address of employer, Name of

employer, job title) in case of a salaried person, NIC #, Nationality,

Residential Address, Phone number etc.

In case of joint account the personal information of each account-holder is

taken.

4. NEXT OF KIN

Mention Name & address of person/next of kin to be contacted for

ascertaining consumer‟s whereabouts after the expiry of three years from the

date of last operation in his account, to inform him/her of the existence of his

account when customer were not available at the given date.

5. ADDRESS FOR THE CORRESPPONDECE

Address of the customer is needed to contact the customer.

6. CORPORATE ACCOUNT



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In case of company account the additional information regarding the address

of the Head office and Date and Place of the incorporation is required.

7. TYPE OF ENTITY that either the applicant falls under the category of

individual, sole proprietor or company etc.

9. NATURE OF THE ACCOUNT

10. for example current account.

9. CURRENCY OF ACCOUNT

Customer has to mention the currency, in which he is going to operate.

10. DETAILS OF THE TERM, NOTICE & CALL DEPOSIT

It includes No. of receipt, Amount, Period of the deposit.

11. ZKAT DEDUCTION INSTRUCTION

12. INSTRUCTION FOR OPERATION OF ACCOUNT

Under this head the applicant specify that how he/ she will operate the

account. If applicant is individual then he will select the option of „Single‟ but

in case of a joint account the customers have to make choice among the

options of the „Joint‟ and „Either or Survivor‟ which means that any of the

joint account holder can operate the account. The option of „Any one of‟

meant for the Partnership Account.

13. INTRODUCER‟S DETAIL



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The introducer‟s name, account no., introducer‟s signature and the signature

and stamp of the verifying officer are also required to fill in the account

opening form. If the introducer is the account holder in any other branch of

the NBP then the account opening officer is bound to obtain the verification

from that branch. Introducer should be operating any account from last six

month on regular basis that is the account should not be a dormant account.

14. DECLARATION

In the end the applicant(s) agree with the rules and regulations governing the

account operating activities by signing the Relationship Contracts. In case of

sole proprietor or company account the stamp of the business should be

affixed.

15. TERMS & CONDITIONS GOVERNING THE ACCOUNT

The account opening form of every bank has the terms and condition

governing the account as its complementary part so that the customer will be

aware of all these terms at the time of entering this contract. These terms and

conditions should be read and signed by the applicant(s).

B. Acceptance and Verification of Documents:

After filling the Relationship contract the bank officer asks the required

documents from the customer as mentioned above in case of each entity.

The necessary verification is done.

1. VERIFICATION OF THE CNIC

According to the regulation of the SBP now the banker is responsible to

verify the CNIC from NADRA. For this purpose the customer signs an

authority letter by which he/ she gives him the authority to verify the

CNIC through the on-line CNIC verification service of NADRA.



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2. SIGNATURE DIFFERNET FROM CNIC

If the customer wishes to use a signature to operate his account which is

different from the one on his national identity card, then he will give an

Undertaking under the witness of the Introducer, that he will be

responsible for this change of signature.

3. SIGNATURE SPECIMEN CARD

An important and foremost thing to be signed by a customer is the

Signature Specimen Card (SSC). Afterward this card is used to match the

signature of the customer every time he or she deals with the bank. The

original card is sent to the head office after scanning it to the system.

4. ACCOUNT OF THE ILLETERATE PERSON

In case of the account of an illiterate person the only photo account can be

opened. In this account the customer has to come personally to the bank

every time he/ she will deposit to or withdraw from his/ her accounts. So,

some additional documents are required to obtain from such applicant at

the time of opening a photo account like two photographs of applicant(s),

one is put on the account opening form and the other one is out on the

signature card. Also a declaration is signed by the customer in order to

open a photo account, on which the thumb impression are taken of the

customer. This is done under the witness of the introducer.

5. APPLICATION FOR THE ON-LINE ARRANGEMENT FOR

CLEARING/TRANSFER/CASH TRANSACTION

If the customer wants to have the account to be on-line, so that he can

avail the facility of the on-line banking, then he will sign the application



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for the use of this facility at time of opening an account or at any time later

on.

6. KNOW YOUR CUSTOMER (KYC)

It is a document which is prepared under the special instruction of the

SBP. As per SBP regulation it is very important for the banker to know his

customer very well. This form is prepared by the account opening officer

according to the information given by the customer to him. Also the

banker is required to update KYC time to time. This form is reviewed by

the Branch Manager or Manager Operation.

C. Letter of Thanks:

After this process a letter of thanks is sent to the customer in order to

verify that the address provided by him is correct. But if the customer

chooses the „Hold Mail Facility‟ then no letter of thanks is sent to him.

Issuance of Cheque Book:

1. FIRST TIME ISSUE OF THE CHEQUE BOOK

After the account is opened, the customer requires a cheque book to

conduct operation in his account. In order to have a cheque book the

account holder signs an application to issue a personalized or blank

cheque book.

PERSONALIZED CHEQUE BOOK:

A cheque book having the account title and account number

printed on it is called as Personalized Cheque Book. This

assures the safety of the cheques to be used.



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BLANK CHEQUE BOOK:

It is the simple cheque book with no account title or account

number on it.

2. REISSUANCE OF CHEQUE BOOK

When two or three leaves are left in the cheque book, the account holder

can demand for a new cheque book, so customer fills “requisition slip”

which is attached in cheque book and gives to banker and receives a new

cheque book for continuing the account. An account holder can also any

other person to receive the new cheque book by giving the authority in the

requisition slip. The authorized person should bring the copy of CNIC to

receive the cheque book.

3. CHARGES FOR THE ISSUANCE OF NEW CHEQUE BOOK

The cheque book can be issued of 10, 25 or 50 leaves as per the

requirements of the customer. The charges are Rs.5 per leaf where the

excise duty is also charged. These charges are paid by the customer in

cash when the cheque book is issued at first. While at the second issue and

so on the charges are deducted from the account.

4. LOSS OF THE CHEQUE BOOK

In case the cheque book is lost by the customer then first step the customer

should take is to stop the payment of all the cheques. The charges for

stopping the payment are Rs.200/- per cheque or Rs.500/- for the whole

cheque book. The report the cheque numbers of the remaining cheques at

the time of the lost. The officer of the NBP will enter these numbers in the

system as stopped. Now no body can encash these cheques all over the

Pakistan at any branch.



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Second move is to issue a new cheque book in lieu of the old one. For this

the customer signs a ‘Form B’ as a request of the loss and requisitions of

the cheque book. The charges of the Form-B are Rs.100/- . It is one of the

security documents of the bank. The Form-B requires a guarantor to sign

on it. Along with the For-B the customer also signs an indemnity form to

indemnify the bank from any liability claim or loss that may arise by the

misplacement of the cheque book.

CLOSING OF ACCOUNT

There are number of reasons, why an account is closed. Some of most common

reasons are mentioned below:

At the client‟s own request

Death of account holder

Bankruptcy of account holder

Liquidation or winding up under the companies act.

Dormant account: a dormant account is an account which is

not being operated by the customer from last six month. In

this case the customer has to request the bank in written

form to allow operation in such an account mentioning the

reason of not operating the account regularly.

PROCEDURE FOR CLOSING AN ACCOUNT

When customer wants to close his or her account due to any reason, he gives

the written request either on simple page or on the bank format account closure

request. Surrender the cheque book with the bank which immediately



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destroyed by the bank officer. The customer pays a statutory fee of Rs.100 to

the bank in case of the current account. There are no charges for the closure in

other types of accounts. The account opening officer gets an annexure

approved by all the departments and then closes the account. This is a sort of

clearance from all the departments. Account closed log file is printed in order

to complete the process of closing an account. In the end the account opening

form is filed in the closed accounts file. The account which is closed, that

account is cancelled and never issued to any other person.

Updating OF ACCOUNT

It is the responsibility of the account opening department to update any changes

in the account information as they take place.

The following changes can be the change in the address, phone number and

operating instructions.

Token

I have worked on token seat here my duty was to receive cheques

and give tokens to the person who present the cheque. Following

things should be kept in mind while receiving cheques: Date of cheque

Title of account

Branch stamp on cheque

Amount in figures and words Signatures

If all particulars are correct then write token number on the cheque

and give cheque to the officer who verifies signatures enter it into

computer and give to the cashier. Cashier sign and stamp the cheque and made payment to the customer.



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PRESIDENT‟S

ROZGAR

SCHEME

(NBP KAROBAR)

PRESIDENT‟S ROZGAR SCHEME (NBP KAROBAR)



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President Rozgar Scheme is recently introduced in NBP for unemployed people. Under this scheme NBP is offering Rikshaws and personal computers to start their personal business. Bank buy these items for the customer and customer pay the amount in a given period.

The solution of Pakistan‟s major socio-economic problems primarily lies in the development and growth of small & micro businesses. These will not only provide employment opportunities to ever-growing population demand but will also become the catalyst for breaking the vicious circle of poverty.

In this regard, NBP has developed a full range of Products under the President‟s Rozgar Scheme with a brand name of “NBP KAROBAR”.

Under the President‟s Rozgar scheme, NBP offer following products:

i) NBP Karobar Utility Store ii) NBP Karobar Mobile General Store iii) NBP Karobar Transport iv) NBP Karobar PCO v) NBP Karobar Tele-center

i) NBP Karobar Utility Store:

The product has been designed in collaboration with “UTILITY STORES CORPORATION OF PAKISTAN (USC)” to provide financing facility of an average amount of Rs.100,000/- for a maximum period of five years with



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grace period of three months. This is available to all eligible citizens of Pakistan for setting-up small-scale Retail Outlet or Mobile Utility Store.

Following two financing options are available under this product:

NBP KAROBAR Utility Store (Shop)

NBP KAROBAR Mobile Utility Store

NBP Karobar Mobile General Store

NBP KAROBAR Utility Store (Shop):

Financing facility available to set-up a small scale Retail Outlet (Utility Store in a shop) for purchase of furniture & fixtures. This is also applicable on payment of security deposit / advance rent under franchise from the USC. However, stocks are purchased by the customer.

NBP KAROBAR Mobile Utility Store:

Financing facility available to purchase a 2/3 wheeler, 4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) with attached Loader body (Thehla type) under franchise from the USC to carry utility goods for retail sale ideally in areas where accessibility to conventional utility stores is difficult.

NBP Karobar Mobile General Store (without USC Franchise):

This financing program has been designed on the similar pattern of Mobile Utility Store. The only difference is that the borrower has the liberty of procuring stock/supplies/grocery items from open market. Under this product the average loan size of Rs.100,000/- is given for a maximum period of five years with a grace period of three months.

vi) NBP Karobar Transport:



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The NBP Karobar Transport is designed to finance 2/3 wheeler, 4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) to the eligible citizens of Pakistan for providing less expensive environment friendly

transport facility. Under this product average loan size of Rs.100,000/- is provided for a maximum period of five years with a grace period of three months.

vii) NBP Karobar PCO:

This product is designed to finance setting-up a PCO. NBP is providing financing for the purchase of Mobile/Wireless Telephone Set with connection, Credit Balance. The average amount of financing under this

product is be Rs.5,000/- for a maximum period of two years with a grace period of three months.

viii) NBP Karobar Tele-center:

This product is specially designed to finance setting-up a Tele-center. NBP is providing financing for the purchase of Mobile/Wireless Telephone Set with connection, Computer, Printer and Fax machine cum Photocopier etc. to establish tele-center on a rented shop or owned premises. The average amount of financing under this product is Rs.50,000/- for a maximum period of two years with a grace period of three months.

CONDITIONS TO APPLY

The application forms is available in all NBP branches

The scheme is offered to eligible young and literate citizens of Pakistan.

Falling within an age group of 18-40 years

Having a minimum qualification of Matriculation (except for females in the PCO/Tele-center product).

The eligible borrowers are required to make a down payment of 15%.

Asset and Life & Disability insurances is mandatory under this scheme.

The 15% down payment is include 1st year‟s asset insurance premium.

The cost of life and disability insurance is borne by GoP.



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The mark-up rate for the 1st year is 12%

Fifty percent (50%) of this rate is paid by the customer i.e. 6% and the balance of 6% is borne by GoP

Benefit of the Scheme

NBP is the largest bank of Pakistan with the customer base of over 10 million account holders. The scheme is being launched from designated branches of NBP, however, This scheme is providing direct and indirect jobs to the tune of approximately 5.4 million Pakistanis.

It has the largest borrower base exceeding one million customers and growing.

Compared to the average of its peers, for 2003,

NBP was bigger by 53% in asset size,

100% in pre-tax profit,

25% in Return to Assets,

23% on Return on Equity

114% in Earning Per Share.

Procedure:

1. First of all Customer has to open an office account in NBP. 2. All the transactions of President Rozgar Scheme are done under this

account.



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3. Customer fills up a form, provided by credit officer. 4. This form contains following information

b. Name of the borrower c. Father‟s name d. ID card number e. ID card number of father f. Phone number g. Address h. Monthly income (if doing job or business)

5. Bank needs at least two References from his residential area. 6. Following information about the references is needed

Name

Address

ID card number

Mobile number or Phone number

7. In case of Telecentre, PCO bank ask for a guarantor as well as two references.

8. After filling the form customer has to fill a voucher of Rs1500 as

transaction fee.

9. Customer gets receipt of the voucher. 10. Bank sent all the particulars to main branch for verification.

11. Main branch verifies all the details of customer i.e address, ID Card,

Phone no. etc. 12. After that borrower deposits down payment which varies with

products.



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n e

RECCOMMENDATIONS

Some recommendations

After going through SWOT analysis of NBP I have come to the conclusion that although NBP has major market share and one of the most specialized bank yet it needs to improve its efficiency in various dimentions.Here are some recommendations which if adopted can really proved to be fruitfull;

1. NBP has an exorbitant amount of funds at its disposal even then its infrastructure is relatively poor as compared to its competitors.This infrastructural deficiency is one of the main reasons of failure of attracting more customers.There is strong need to invest in this direction.



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2. It is not considered by the customers as best provider of banking services as itdoes not spend handsomely on advertisement budget.There are neither any brouchers nor any other form of publicity so major portion of target customers are ignorant of its activities.

3. Customers feel hesitant while dealimg with NBP as customers have to

surpass a lengthy and cumbersome procedure to avail any facility ,There is beureacratic structure found in NBP so employees are not concerned about their performance so there is need to replace this structure with that of based on merit system.

4. There are not found satisfactory Quality Service Standards as opposed

to its competitors (other commercial banks) which have emphasis on customer focus like post of CRO(Customer Representative Officer) on the other hand NBP has no such post to guide their customers.Thus it is strongly recommended to appoint a CRO at each branch.

5. There is strong need to reposition the image of NBP in the minds of

masses. People always prefer forging banks over NBP.So its required to change priorities and customers are to be given more priority.

6. The trend of Islamic banking is gaining popularity now people are

getting more aware of Islamic banking products and other derivatives,in this regard NBP has not taken any substantial step.People are just hoping to replace present interest based system with pure non interest based banking so it is highly desirable to ponder on these lines and NBP is supposed to offer Islamic banking at mass level being a national bank NBP has much burden on its shoulder.

7. Credits cards and other consumer financing has been a big failure for

the NBP now its time to dive in this race again in order to prove competitive in the present arena of severe competition and in order to retain its existing customer and also attracting new ones as well.

8. As sky is the limit so is the case with NBP it does need to find out more

markets for both purposes ;for receiving deposits and for incurring investments in diverse fields in diverse countries in order to mitigate risk arising out of external environment.A diversified portfolio is the need of the time.



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9. The branch where I work was lacking staff,resources(basic infrastructure I-e furniture,computers and space).At clearing ,pension there was one officer for each work category and in credit department there are only two officers one of them is a credit officer while other was a loan officer,the branch has a vast public interaction ,so this shortage of resources hinders the banking operations and customers remain unsatisfied ,specially at the time of the start of the month it was nearly impossible to respond to eeach customer and to attend them properly ,so I recommend on the basis of my personal observation that NBP Samanabad building is needed to be reconstructed in order to broaden it. Appointing more staff at this branch can solve the problems faced by the customers and employees as well particularly in pension department.

10. All the branches are not computerized so on time and real time

transaction recording is not possible which causes failure to maintain and ensure timely availability of up to date data.In most of the branches of NBP,manual recording is still followed by the staff which is time consuming ,more exposed to wastage and is not error free.So it is acute need to replace present partial computerized system with complete computerized system.

NBP

Documents

state bank of pakistan

central bank

regular bank

complete bank facilities

public commercial bank

government of pakistan

financial sector of

head office