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4. EXECUTIVE SUMMARY
By the grace of Almighty ALLAH, I have successfully completed my two months
internship as per requirement of BBA (HONS) course. I was appointed at NBP, I feel
myself lucky to have worked with such a cooperative, dedicated, result oriented team.
They all helped me in every possible way they can. I was happened to work with all
departments.
This particular internship report on various parts or sections are an introduction to the
first and second overall position shown, i.e. the functioning of the bank operations and
bank focused on the tasks. Similarly, three sections, the introduction of performance
history and the Institute expresses. Four-section plan strategies, and represents
success. Last but not least of all five parts, pest analysis, SWOT analysis ratio analysis.
There are a few tips and recommendations. Pakistan's banking sector has been a slow
and government-dominated region within a short period of 5 years and more
responsive, competitive and profitable industry has changed. Changes speed and
banking sector and economic development of their role in promoting the success of
indexing is now a region of a major story. Banking industry in Pakistan to enjoy these
trends will continue and promising prospects. NBP National Bank of Pakistan, Pakistan
is one of the major banks. NBP National Bank of Pakistan on November 9, 1949Ordinance, 1949 was established under. Initially the purpose of bank lending to
agriculture. Karachi and Lahore offices opened since December 1949. Now it has
branches across the country.
.
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INTRODUCTION OF STUDY
5.1.1 Introduction
It is the requirement of the BBA (HONS), University Of Gujarat that all students of BBA
have to spend six weeks in any organization to get practical exposure and to get
attached in an organizational environment which is dramatically different from the
educational environment. Thats six week period called Internship Period , if spent
properly and truthfully, enables the students to be more confident, more familiar, more
responsible and, above all, more committed to its work in the practical field. But I have
also been assigned to do internship of two months period in NBP
This report consists of practical work that I have done in NBP. National Bank was
established in 1949. After it, to expand its network all over the Pakistan according the
need of society. NBP is a single bank in Pakistan under the control of Pakistan
government. It is established for welfare of society that provides the security for its
precious thing like cash, gold etc. There is verity of accounts in the NBP that people are
opened according their desire. It provided different services on the behave of their
customers. Students an internship with the organization two moths are required to lead
to practice discipline and banking administration is to serve the purpose of acquainting
students with the knowledge. The basic purpose of it to implementation of students
skills knowledge techniques and problem solving method that learned during the
university or in education life. The branch code where I have done internship is (0670)
National Bank of Pakistan (Jandu- k- Guraya.)
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5.1.2 Background of study
Being a business student, it is the requirements of our university to do internship in any
sector. I am interested in fianc and I am doing my specialization in finance field so I
choose the NBP because it is under the control of government. Major activities of
finance are performed in it. It is large commercial bank. People rely upon it very much
than other bank. People easily deposit in it because there is no fraud with them. NBP is
found in my place so it's easy for me to go to the bank of every day and back to house
easily.
5.1.3 Purpose of the Study.
The main purpose of this study is to assemble important information to make internship
report in NBP. As in the introduction I have mentioned that it is the requirement for
completion of BBA (HONS) and also
Work practically in an organization.
To develop interpersonal communication
Increase the knowledge
Theoretical and practical learning
5.1.4 Objectives of the Study
I. To conduct thorough study of National Bank of Pakistan.
II. To understand the various operations and to equip with practical knowledge of
the National bank of Pakistan.
III. To get some field experience about job.
5.1.5 Organization
I have chosen the banking sector to accomplish my internship and the organization
in which I have spent 2 months to complete my internship is NBP. NBP wasestablished vide Ordinance No. XIX of November 9. 1949. British Govt. devalued its
currency in September 1949; India devalued its rupee, but not Pakistan. It led to a
crisis in trade between the two countries and India refused to lift the Pakistan Jute.
To solve this problem, namely an NBP jute export is determined by a regulation of
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the GOP. National Bank of Pakistan maintains its position as a leading bank in
Pakistan committed to higher standards of performance to set. It is the main partner
for the Government of Pakistan with special emphasis on promoting the economic
growth of Pakistan, through aggressive and balanced lending policies, technology-
driven products and services offered through its large network of branches locally,
internationally. National Bank of Pakistan is under the control of Govt. It is
headquarters in Karachi. It has over 1450 branches in which 18 abroad. National
Bank of Pakistan maintains its position as a leading bank in Pakistan committed to
higher standards of performance to set. Growth was established by creating lasting
relationships with customers.
I. Prudence our business directory.
II. A national presence with a history of contribution to our communities.
III. Reward entrepreneurial efforts.
IV. Create value for all stakeholders.
V. Concern about relationships.
VI. Guided by the strength of our commitment and willingness to excel.
VII. Practice integrity, honesty and hard work.
VIII. Leaders in our industry.
5.2 Introduction of NBP
Introduction
In this chapter I am going to analyze the organization Short History of the NBP,
which is the management structure of the NBP, how many divisions are there, and
their work has to clarify in which also included the current staff of the branch, and
their qualifications, experience, salary structure and promotion strategies. What are
the responsibilities of their employees, incentives and motivation methods? Hours of
organization, physical facilities (workplace) provided to employees. How they
communicate with the organization. The standard of organizational outcome is
checked thorough the performance in term of customers satisfaction, and at the end
of lost revision of the budget of the branch.
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5.2.1 Brief history of the organization
National Bank of Pakistan (the bank) was established 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 in Karachi. The bank is
engaged in providing commercial banking and related services in Pakistan (GOP) as
agent to State Bank of Pakistan (SBP). The bank operates 1450 branches in Pakistan in
which 18 overseas branches Under a Trust Deed, the bank also provides services as
trustee to National Bank of Pakistan investment Trust (NIT) including safe custody of
securities on behalf of NIT. At the time of independence in 1947, Government of
Pakistan decided that Reserve Bank of India would act as the common monetary
authority of both countries up to September, 1948. But this arrangement did not worked
due to certain reasons. In October 1947, there was fighting in Kashmir and India
refused to pay the share of Pakistan amounting Rs.550 million. Due to Indian
government attitude and role of Reserve Bank of India in creating problems to cater to
the banking needs of Pakistan. Government of Pakistan established its own central
bank SBP on 1st
July 1948.
Soon after independence of Pakistan, most of our foreign trade was with India and
Britain. Britain and other countries of Commonwealth devaluated their currencies. India
also followed Britain and devalued her currency. They were also compelling Pakistan to
do so. But the Government of Pakistan felt that devaluation of currency was not in the
interest of the country, so GOP refused to follow instructions of Commonwealth
countries. It resulted in a very serious situation. Stocks of jute in East Pakistan and that
of cotton in West Pakistan were accumulating. At that time to rescue the economy of
the country, the Government of Pakistan established National Bank of Pakistan under
National Bank of Pakistan Ordinance 1949. NBP acted promptly and advanced loans to
the farmers. National Bank of Pakistan was set up with authorized and paid-up share
capital of Rs.30 (M). It is completely government bank.
In 1952 NBP replaced Imperial Bank of India. This arrangement was negotiated by Mr.
Mumtaz Hussain as Acting Governor of SBP. In 1962 when Mr. Mumtaz Hassan
became MD (He had already served NBP for 10 years as its Chairman or Government
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Director), at that time NBPs branches were increased from 6 to 239 and deposits from
Rs.5 core
In 1974 during the era of nationalization, different small banks including Bank of
Bahawalpur were merged in National Bank of Pakistan. In addition to this Bank of
Mehran and NDFC were merged in it. National Bank of Pakistan maintains its position
as Pakistan's premier bank determined to set higher standards of achievements. It is
the major business partner for the Government of Pakistan with special emphasis on
fostering Pakistan's economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large network of
branches locally, internationally and representative offices.
VISION
It is basic aim to provide high quality of service to their customers and make to sure
economic stability of Pakistan. 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 STATEMEN
Mission statement of NBP is included that
Provide a standard service
To enhance the international relation with Pakistan
To produce maximizing value for the shares holders
To growth the economic growth
To finish the poverty
To provide the financial aid to needy persons
To adopt the international traded rules
Discharging our responsibility as a good corporate citizen of Pakistan and in
countries where we operate
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Values
Today NBP has high standards of services offering that meet the customers
need
Technical skills to meet the challenges
To understand the society needs and realized its need according the society
requirements
Value creation for the investors, creditors, debtors, costumers
5.2.2 NATURE OF THE ORGANIZATION IN PAKISTAN
Bank has a great importance in financial sector because it deals with money
transactions. It controls the inflation and depletion through the supply of money
according the market situations. When there is access of money in the market and
country is in inflation then bank sell its marketed securities in the market and control the
inflation. Banks is such institute in which accepts deposits from the individuals,
company, firm, household etc. at the low interest rate and provides loans to individuals,
company, firm and household at high interest rate. The difference between this interest
rate is banks profit. Its also provide the loans to the governments. It reserves some
part of its deposits to the State bank according to the requirements of State Bank of
Pakistan. The source of income of NBP is the difference of the rate of interest at which itborrows and lends to the customers as well as investment in the market. So bank is a
profit earning institute. With the passage of time its important in financial sectors is
going to increased now it has also played an important role in financing the countrys
growing trade, which has expanded through the years as diversification took place.
There are various accounts such as current, PLS Saving, basic Banking Account (BBA)
and PLS Term Deposit accounts in which people deposits their money and gold. It also
provides various services on the behave of their customer like
Providing the agency services according the instructions of their customer like
deposits the utility bills, received or payee payments.
Providing the hajj services to the hajjes
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To make loan for needy persons like industrial, agriculture, individual, household
and firm at low interest rate.
To also make loan to the Government.
To establish economic stability
To purchase the securities
Make is sure secrecy of its customer from other
Provide the locker services to its clients
Sharing accounts
To act as a intermediaries between buyer and seller
Transfer the funds for customer from one place to another place
Transfer the funds for customer from one place to another place
To promote international trading
To promote the international relationship
To reserve to the State Bank of Pakistan
Financing of projects, including technical assistance, project appraisal through
long term/ short term loans.
Make is sure of seasons loans like wheat, rice, sugar cane,, etc.
To provide the remittance services
To provide the guide line about the crops
Receiving of bonds, valuables, etc. for safe custody.
To payment the pensions
5.2.3 Business volume and rewards
About the best returns of capital (percentage) scale, the National Bank of Pakistan was
rated as the highest in Asia and eighth in the world. This is the first time that a Pakistani
bank's top position in the world was.
Kisan Times Award that is the about by banks agriculture loan strategy
5.2.4 Products of NBP
NBP Premium Amdani
Monthly Income Scheme
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Time period is from 1 to 5 year
Earn up to 12% p.a.
Minimum deposit of Rs. 50000/- and a maximum deposit of Rs. 5,000,000/-
for 5 years
Free Demand Draft, Pay Order
Convenience of NBP online Aasan Banking (for online banking customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%
Premium Saver Home Page
NBP Saiban
The scheme was launched at a function in Karachi presided over by Mr. Shaukat Aziz,
Pakistan's Finance Minister.NBP Saiban is the most affordable House Financing
Scheme in which a customer can avail now and repay the loan over 3 to 20 years
period.
Finance is available for home purchase, home construction and home
improvement.
Period of repayment ranges between 3 to 20 years.
Loans available up to a maximum of Rs.10 million.
Mark-up choices available. Rate ranges between 7.5% 9.75%.
Minimum approval and disbursement timing.
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NBP Advance Salary
10 month salaries in advance (certain conditions apply).
Minimum documentation.
Repayable in 5 years.
No processing charges; no collaterals, no guarantees, no insurance.
Mark-up charged at 11% per annum on reducing
Cash Card
Investor Advantage
NBP Cash n Gold
Facility of Rs.25000 against 1 Gms of gold.
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Mark-up 15% per annum.
No maximum limit of cash.
Repayable after one year.
Roll over facility.
No penalty for early repayment.
Kisan Taqat
NBP Kisan Dost
Loans available to farmers for production, development, purchase of tractors, for the
installation of wells, purchase of agricultural equipment, micro-loans for godown
building, construction of fish ponds, livestock, the milk, for cold storage, bio-gas plants,
etc
Mark-up 11% per annum.
Loans available at the farmers doorsteps.
Agricultural experts to guide farmers.
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Loans available against agricultural passbooks, gold ornaments and paper
security.
Pak Remit
5.2.5 PEST ANALYSIS
PEST analysis means political, economic, sociocultural and technological forces that
affect the bank. It is very important to know about your environment before beginning
the marketing process. It is consisted of
Internal factor such as staffs members, office technology etc.
The micro-environment e.g. our external customers, agents and distributors,
suppliers, our competitors, etc
Political
Political pressure and thread
To high rate of tax
To reserve deposits to State Bank of Pakistan
Privatization policy and deregulation
To hire middle education and low experience people.
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Economical
Economy of Pakistan is facing issues about employment, inflation, illiteracy, which are
hurdles in business growth.
Restrictions in movements of public saving to control the inflation.
Bad debts
Social & Cultural
Cultural issues can be there but still as there are a number of multinational companies
there, therefore cultural issues are not prominent
Not efficient use of human resources
Not timely audit
Wrong use of authority Not proper distribution of work according of the worker skills
Cultural strains to saving
Technological
People are highly skilled and NBP can introduce new technology to increase competencies.
5.2.6 Contribution of organization toward economic development
NBP plays important role for the welfare of society by reducing the hurdles in economic
developments. It provided short and medium term loans to start up the business to the
people. It also provides the taxi, Chandigarh etc with the monthly installments to the
people. It has a wide range of consumer products, to improve business and cater to
different segments of society. Some schemes are specifically designed for low to middle
income segments of the population.
As financial system, NBP channels funds from savers/investors to those who
require funds for building infrastructure, starting and running businesses, building
or improving houses, consumer financing of big-ticket items like automobiles, etc.
As in GDP, NBP is helpful in the growth of economy of Pakistan.
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NBP offers on line services, so reduce the costs of transportation for the transfer
of money, it is also beneficial for the economy of Pakistan.
NBP has a broadest branch network in Pakistan, it has almost 1450 branches in
Pakistan so performing their functions and contributing to the growth of the
economy.
NBP plays its major role by providing loans and finance to the people having
investment opportunities which is a major function of any financial institution.
National Bank of Pakistan (NBP) is a bank, that plays a very important role in any
economy.
5.3 Organizational structure
5.3.1 ORGANIZATIONAL CHART OF NBP
DESIGNATIONS FO HIGHER LEVEL OFFICE:
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
GRADE 22
EXECUTIVE VICE PRESIDENT
GRADE 21
VICE PRESIDENT
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GRADE 20
ASSISTANT VICE PRESIDENT
GRADE 19
GRADE I OFFICER
GRADE 18
GRADE II OFFICER
GRADE 17
GRADE III OFFICER
GRADE 16
Senior management
Qamar Hussain
Chief Operating Officer, Head of Credit & Risk Management Group
Dr.Asif A. Brohi
SEVP & Group Chief, Operations Group
Shahid Anwar Khan
SEVP & Group Chief, Overseas Banking Group / Corporate & Investment Banking
Group
Ziaullah Khan
SEVP & Group Chief Agriculture Finance Group
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Dr.Mirza Abrar Baig
SEVP & Group Chief, Human Resources Management & Administration Group
Amir Siddiqui
SEVP & Group Chief, Commercial & Retail Banking Group
Tariq Jamali
SEVP & Group Chief, Compliance Group
Nadeem A. Ilyas
SEVP Group Chief, Assets Recovery Group / Corporate & Investment Banking Group
Muhammad Nusrat Vohra
SEVP & Group Chief, Treasury Management Group
Khalid Bin Shaheen
SEVP & Group Chief, Global Home Remittance Management Group
Imam Bakhsh Baloch
SEVP & Group Chief, Audit & Inspection Group
N.B.Soomro
SEVP, Special Assignments, President's Secretariat
Agha Fidaullah
EVP/Group Chief, Special Assets Management Group
Shafique Ahmed Khan
EVP & Divisional Head, Islamic Banking Division
Ikhlaq Ahmed
EVP & Secretary Board of Directors
Fazal-ur-Rehman
EVP & Head P&IR Division, HRM&A Group
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Muhammad Hanif
EVP & Head HR & OD Division, HRM&A Group
Muhammad Iqbal Qasim
EVP & Head SC & CSR Division, HRM&A Group
Tahira Raza
EVP & Head Risk Review Division, Credit and Risk Management
Ali Hassan
SVP & Divisional Head, IT Division / Chief Information Security Officer
Aamir Sattar
SVP & Divisional Head, Financial Control Division
Faisal Mahmood
VP & Divisional Head (A) , PMO & Project Director CBA
5.3.2 Number of employees
Total current staff position of NBP is as follow
Permanent 13450
Temporary/ On Contractual basis 921
Bank's own staff strength at the end of the year 15015
Outsourced 2589
Total Staff Strength 19429
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The bank has been named the best bank his entire career of 62 years old. Bank is
currently in many cities of Pakistan with the network of 1450 branches. The bank is
currently operating with approximately almost 19429 employees throughout Pakistan
and abroad. Bank is not only providing services in the 21st century Pakistan, but also
creating job opportunities for the young blood of Pakistan.
5.3.3 Main offices
Offices or field offices
National bank is the one of the biggest bank in Pakistan having more than 1450
branches that is serving the customers.
Head office of National Bank of Pakistan:
National Bank of Pakistan, Head Office
NBP Building, I.I. Chandigarh Road,
Karachi, Pakistan.
Domestic Branches:
The National bank of Pakistan has 1432 branches in the Pakistan. That is operating in
whole of Pakistan in
Punjab
Sindh
Baluchistan
Islamabad
Azad Kashmir
Overseas branches:
NBP has the overseas branches /offices in the following countries:
USA,
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Canada
Germany
France
Bahrain
Saudi Arabia
Bangladesh
Hong Kong
And many more countries around the globe
5.3.4 DEPARTMENTATION OF NBP
Banking procedures are divided between different departments. Different departments
do their work in the presence at the bank policy. The National Bank of Pakistan everybranch is divided into different sections depending on their size and volume of business.
Head of the department manages each department and officials of the branch to follow
procedures. The departments working within the National Bank of Pakistan Jandu-ke-
Guraya branch include:
1. Cash department
2. Account Opening Department
3. Clearing House Department
4. Advances Department
5. Remittance Department
6. pension and disbursement department
7. Deposits Department
8. Accounts Department
1. CASH DEPARTMENT
All physical movements of cash transactions activities are performed in the cash
department. As bank lending and borrowing institution, so cash is the highest priority of
the Bank. Another aspect is that cash department for security purpose, security in a
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sense that there was no misappropriation of funds or cash led to the bank by a party or
person.
2. ACCOUNT OPENING DEPARTMENT
The opening of an account is the creation of banker-customer relationship. This
department performs the duty of opening accounts for customers. If a customer wants
to open an account in the bank then account department needed some documentation
and analysis of the document information after the officer takes notes in opening an
account register and issue the account number of the customer. After pouring some
customer can operate his account.
3.CLEARING DEPARTMENT
The Clearing System, the checks must be paid or settled and central settlement for
claims and liabilities between banks. The SBP clearing coordinate activities through its
offices, known as clearinghouses, established in major cities and towns. Where SBP not
maintain its own office, another bank, usually the National Bank of Pakistan (NBP)
performs this function. But the clearing facility is only available for checks / instruments
drawn on banks located within the same city / area clearinghouse.
4.ADVANCES DEPARTMENT
The bank is profit seeking institution. It attracts surplus balance from the customer at
low rate of interest and makes advances at a higher rate of interest to the individuals
and business firms. Credit extensions are the most important activity of all the financial
institutions, because it is the main source of earnings. Advances department is one of
the most sensitive and important department of the bank. The major portion of the profit
is usually earned through this department. The advances Department receive
application from intending borrowers. After receiving application the advance
department processes it further. After analyzing and detailed investigation, they decide
whether to approve the loan or not. Some loan approvals are made by the Manager of
the branch within his powers as prescribed by the banks higher authorities, while some
loan applications are submit to higher authorities for their approval.
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5. REMITTANCES DEPARTMENT
The department handles the payment transfer money from one place to another. Funds
transfer facility or transmission of funds is one of the main functions of banks around the
world. Remittances through banking channels saves time, cost less and eliminate the
risk involved in physical transportation of money from one to another place.
6. PENSION DISBURSMENT DEPARTMENT
The National Bank of Pakistan was Pakistans leading institution which performs the
function of pension payments or disbursements to pensioners. The pension
disbursement department is responsible for making pension payments to Government
Pensioners. The person who wants to receive his/her pension from National Bank ofPakistan can open an account with any branch of National Bank of Pakistan The bank
performs this function through Demand Draft Purchase or simply called DD Purchase.
7. DEPOSITS DEPARTMENT
The primary function of the National Bank of Pakistan to accept and surplus money from
the people who volunteered their deposits with the Bank. Like all other banks, National
Bank of Pakistan also turns to draw as much as it can depositor. The escrow service
accepts / collects deposit account holders.
The National Bank of Pakistan offer different deposit schemes to its customers, which
includes the following:
Current Deposits
PLS Saving Deposits
Fixed Deposit Account ( Time Deposits)
Foreign Currency Account
NBP Premium Amdani
Foreign Currency Account
National Income Daily Account (NIDA)
8. ACCOUNTS DEPARTMENT
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Accounts Department of the bank can be considered the most important department.
This department is basically concerned with processes and activities of recovering,
sorting, summarizing and reporting data resulting from the whole day transactions of all
the departments. Actually the process of this activity starts from the preparation of all
the required vouchers by different related departments. When these vouchers are
prepared, these are posted into respective computer terminals by the relevant
department.
General Ledger- Abstract
Check Book Issue Register
Western Union payments Register
Demand Notices
Miscellaneous Book
Bank Transfer scroll
Posting NBP Advance Salary
Daily Statement- F21
General Ledger- Head wise
End of Day register
Posting National Income Daily Account (NIDA)
Monthly return register
Charges A/c register
P-L-S Profit list
Weekly Telegram
Mail Transfer Register
Government Scroll
Provident file
Government Scroll Debit & Credit
Transfer Responding Advice Dispatched Register-F15
Cash Remittance IN
Cash Remittance OUT
NBP General Account
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Utilities register
Closing entries
Daily activity checking
Minor expense recording
Registers of banks
Attendee register b-1
Account opening b-127
Clearing register b-89
Post register for other bank b-99
Postage letter of thanks b-99
Gold leader b-74
Cheque book register b-60
Token register b-4
5.3.5Comments on the organizational structure
During my stay in the National Bank of Pakistan, I found it as one of the best banks in
Pakistan. As an internee, I enjoy working there. NBP has a very cooperative staff. I
worked there in a very sympathetic and supportive environment.
It offers very good package of salary and benefits to its employees. Management tries
to regulate a system for promotions. It has both regular and contract employees, such
as views on the use of strangeness for the cross fertilization of ideas. It offers its
employees unlimited in terms of economic welfare and development. National Bank of
Pakistan provides many benefits and allowances to their employees (directors, officers,
employees and non employees).
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5.4 Internee work
5.4.1 Brief introduction of the branch
I worked in National bank branch situated at circular road Mundaki chwke. I did my
internship from 01-08-11to 07-10-11. Jandu-k-Guraya branch is not offering all the
products and services as mentioned above, as few services are offered only at regional
offices or head office level but still providing enough services. The branch is well
equipped with all the required resources which are needed in order to provide good
services to the customers. 8 employees are working in this branch.
Branch Name Jandu_ ke_Goraya
Branch Code 0670
AddressNational Bank of Pakistan Jandu_ke_Goraya, district
Sialkot
Phone 052-6623272
Fax 92 052 6623272
Tehsil Daska
District Sialkot
Province PUNJAB
SWIFT Code ---
Branch Details
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Status Not yet online
Email [email protected]
BBrraanncchh mmaannggeerr MMrr.. SShhaahh
OOppeerraattiioonn mmaannaaggeerr MMrr.. WWaajjiidd SShhaahhii
MMrr.. AAmmiirr NNaassiirr AAhhmmeedd MMrr..AAkkmmaall IImmrraann SSwweeaatt IImmrraann VVeerrkk
5.4.2Introduction of supervisor
I have done two moths internship in NBP Jandu-ke-Guraya. During these two moths my
job was rotating in different departments. My supervisor name is Mr. Amer. He is
supervised me. He is a resident of Daska city. He is very sound mind and hard worker.
Allah gives him all qualities to understand the situation and solve them easily and
quickly. I am very lucky that Mr. Amir supervised me. His qualification is BA. In the very
first day of my internship, he teaches me how to work hard and control the temper in
frustrating the general vicinity of the bank and confronted with the problems. I am very
enjoyed his company
Companion who accompanied me in all aspects of general banking risks during the two
moths of my internship. Under his supervisory he tells me the types of accounts and all
relevant information about the bank.
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Department Weeks Date Day Daily Work
Cheque writing
department
Week
1
01-08-11Monday
Introduction with all the Staff member of the
branch
Cheque writing
department 02-08-11Tuesday Introduction to about the cheque
Cheque writing
department 03-08-11Wednesday Kinds of cheque
Cheque writing
department 04-08-11 Thursday Kinds of cheque
Cheque writing
department 05-08-11Friday Cross cheque
Supervisor Name: Mr. Amir Signature -------------
Department Weeks Date Day Daily Work
Deposits
Department
Week
2
08-08-11
Monday Cash voucher
Deposits
Department
9-08-11
Tuesday Cash voucher
Deposits
Department10-08-11
Wednesday Cash and Transfer voucher
Deposits
Department
11-08-11
Thursday Cash and Transfer voucher
Deposits
Department
12-08-11
Friday Cash and Transfer voucher
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Supervisor Name: Mr. Imran Signature -------------
Department Weeks Date Day Daily Work
Remittances
Week
3
Monday Introduction to Remittances
Remittances 15-08-11 Tuesday Introduction to demand draft
Remittances 16-08-11 Wednesday Introduction to demand draft
Remittances 17-08-11 Thursday Introduction to Pay Order
Remittances 18-08-11 Friday Introduction to Pay Order
Supervisor Name: Imran sweat Signature -------------
Department Weeks Date Day Daily Work
Remittances
Week
4
22-08-11Monday
Introduction to Online transfer and
receiving of Cheques
Remittances 23-08-11 Tuesday Receiving the cheques of same branch
Remittances 24-08-11 Wednesday Fixing the stamps on Cheques
Remittances 25-08-11 Thursday Passing the cheques to cash counter
Remittances 26-08-11 Friday Receiving the Online Transfer
Supervisor Name: Sir Amir Signature -------------
Department Weeks Date Day Daily Work
Account
OpeningWeek
5
29-08-11
Monday The process of account opening
Account
Opening 30-08-11Tuesday Detail information to account process
Account
Opening 31-09-11Wednesday Able persons who open the account
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This is weekly time table
Account
Opening 01-09-11Thursday
Entering data of new account holder in the
register
Account
Opening 02-09-11Friday Privacy information
Supervisor Name: Imran Virk Signature -------------
Department Weeks Date Day Daily Work
Advance loan
department
Week
6
06-09-11Monday The procedure of inquiry
Advance loan
department 07-09-11 Tuesday The procedure of inquiry
Advance loan
department 08-09-11Wednesday dealing with customer according loan used
Advance loan
department 09-09-11Thursday
Issued loan against gold pledge
.
Advance loan
department
10-09-11Friday Issued loan against gold pledge
Supervisor Name: Mr. Imran Signature -------------
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5.4.4 Detail description of the departments in which work
ACCOUNT OPENING DEPARTMENT
The procedure of the account opening in the bank is very simple. For this purpose bank
has a separate department in the bank. If anyone is willing to open the account in the
bank, it is investigation about the new account holder through ID card investigation. For
this purpose firstly bank requires of ID card copy and then sends it to the main office for
the. But the business organizations such as sole proprietary concerns, partnership
firms, and limited liability companies as well as non-profit organizations like clubs,
trusts, societies, associations and NGOs etc, may open their accounts. The primaryfunction of National Bank of Pakistan is to accept and receive surplus money from the
people, which they willingly deposit with the Bank. To accept the deposits from the
customer there is a need for developing banker customer relationship and account
opening department perform this activity.
PLS Saving Deposits
Fixed Deposit Account ( Time Deposits)
Foreign Currency Account
NBP Premium Amdani
Foreign Currency Account
National Income Daily Account (NIDA)
REMITTANCES DEPARTMENT
The Remittance department deals with the transfer of money from one place to another.
Funds transfer facility or remittance of funds is on of the key functions of the banks all
over the world. Remittances through banking channels save time, costs less and
eliminate the risks involved in physical transportation of money from one place to
another. National Bank of Pakistan transfers money in the following ways.
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Pay Order
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Slip
Call Deposit Receipt
Letter of Credit
Travelers Cheque
Kinds of Remittances
There are various types of remittance according their inflow and out flow.
1. Inflow
2. outflow
It may be whining the country or outside the country. When remittance come from
other the country it is called is inflow and when remittance goes outside the country is
called outflow. It may be transfer within the branch or it may bet transfer from one
branch to another. It may be transfer from one bank to another bank in the same city or
transfers from one bank to another bank in two cities.
Clearing Department
All the cheque and negotiable instrument, which are drawn or received from other bank,
are processed and subsequently settle by the clearing department.
For a bank, following are the requirements of being a member of clearing house:
It must be scheduled bank i.e. it is registered
It must have account with State Bank of Pakistan
Sufficient balance should be in his account
Types of Clearing
There are two types of clearing Inward Clearing and Outward Clearing
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1. Inward clearing mean the cheques of other bank comes in the NBP
2. Outward clearing mean that the chaques of NBP go to the other branches.
Clearing charges
When the cheque is send outside the district then there is RS. Is =75/=. But within the
district there is no any charge. If any cheque is returned due to any reason then there is
Rs. =200/= charges. Commission is 2% at it. FED rate is 16% on the commission
5.4.5 Description of the operations performed in concerned department
Requirements for Account Opening and closing of Account
First, bank gives an account opening form to the customer and received the relevant
information to the customer. Then he attaches a photocopy of his ID card and make his
sign. Now he fills the pay-in slip and deposit money on the counter. Following things are
needed for opening of account: in which Account opening form, Letter of thanks, Next of
kin, Specimen Signature card, Issuance of cheque book. In account opening form
customer make two time sign also in specimen signature card. Letter is thank send to
new account holder in which bank say the new account holder to thanks to open the
account in the bank.
Following things are needed for opening of account:
Account opening form
Next of kin
Issuance of cheque book
Letter of thanks
Specimen Signature card
Account Opening Form
Account opening form consist of
Individual Account( single/joint)
Nature of account and currency
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Individual Account (address/contact information)
Personal information-Applicant No. 1
Personal information-Applicant No. 2
Personal information-Applicant No. 3
Details of other banking relationships
Account operating instructions
Next of kin
Customer Profiles( know your customer)
Name and signature spaces
Specimen Signature Card
The specimen signature card consists of
1. .Name:
Specimen signature
2. Name :
Specimen signature
3. Account no.
4. Attestation
5. Empty box must be cancelled before attesting the signatures.
Next of Kin
In case of death account holder then next of kin operate his account. It is consisted
Name
CNIC NO.
Relationship
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Address
Tel(off)
Residency
Mob.
Letter of Thanks
Letter of thanks is the latter issued by the bank to the customer for two purposes
1st
purpose is to say thanks to the customer for opening the account in their bank
2nd
purpose is to confirm the address provided by the customer while opening the
account.
Issuance of Cheque Book
When customer has opened the account after one week cheque book will issue. Some
cheques have 25 leaves or 50, 75 or 100 leaves. Per leaves is charge is Rs=5/=.
Cheque book chargers is deducted from the customer account
Closing of Account
There is lot of reasons that account is closed included
Insufficient balance when account not operate last six months
On the death of account holder and there is no other of kin
Criminal person that govt. sue upon him
On the own request of account holder
Term deposit account ended when his time period over
Account holder Owen request Death of account holder
Closing of account due to the bad manners of account holder
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PAYMENT ORDER.
A payment order is a written order issued by the Bank on its own branch, drawn upon
and payable by itself to pay a specified sum of money to the person. The purpose of
payment order is to transfer the fund form one place to another place. It is usually notissued in favor of the parties of other cities
Functions of clearing department
In the clearing department following operations are performed
To accept Transfer,
To transfer delivery,
To collect cheques of the branch and to arrange for their collection.
To receive and scrutinizing the cheques and other deposit instruments, and the pay-in-
slip at the counter
Fixing the stamps
Scrutiny and receipt by the authorized officer
Returning the counter file to the depositor
Certificate and confirmation by the officer in charge of the department
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Separating the cheque into transfer, transfer delivery, and clearing cheques
Functions of Remittance department
The need of remittance is commonly felt in commercial life particularly and in everyday
life general. A major function of any banking system is the transfer of funds from one
client or one place to another. By providing this service to the customer the bank earns
a lot of income in the form of service charges. This department deals with local currency
remittance i.e. remittance from one city to another without actually carrying the
currency. MCB uses following instrument for transferring of money
Demand Drafts (DD)
Telegraphic Transfer (TT)
Demand drafts (DD)
Mail transfer
Pay order
Demand Draft
It is a secure method to transfer money from one place to another. There are zero
percent chances to theft the money. Mostly big business men used DD to pay or receive
cash from each other. It is a written order given by the branch of the bank on behalf of
the customer to other branch of the same bank to pay the certain amount to the
customer. DD are issued for the particular place other than place of issuance. A draft is
a Cheque drawn by a bank on its own branch or any other branch of another bank at a
different place requesting it to pay on demand a specified amount of money which is
already received to the person named on it. It is playing important role in international
trade. Multinational firm are used it to carry the amount from one country to another. It
is a printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the applicant
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and credit order is dispatched to drawee branch. Following are the pre-requisites for the
processing of DD.
Bank Serial No
No. of DD
Central No
Rs.60 Postage charges
0.02% Withholding tax
Telegraphic transfer (TT)
It is given from one bank to other on the behalf of the customer through
telecommunication to debit their inter office account through them and credit their
parties account mentioned in TT. It is an inter bank transaction. Through this method
applicant can transfer money from one place to another place.
Applicant has to fill a form along with depositing amount to be transferred and bank
commission. It is consist of Issuing Branch Name & Code, Beneficiary Branch Name &
Code, No. of TT, 60 Rs. for Postage and 140 Rs. for Fax, Amount in words & Figure,
0.02% Withholding tax.
Mail transfer
It is also send mail from one bank to other on the behalf of the customer through
internet to debit their inter office account through them and credit their parties account
mentioned in mail. It is an inter bank transaction. Through this method applicant can
transfer money from one place to another place. Move your money safely and quickly
using NBP Mail Transfer service. And we also offer the most competitive rates in the
market. One of the requirements to affect remittance through Mail Transfer is that the
customer should be an Account Holder. WAPDA is only one company in Pakistan
which is exempted from any bank charges on Mail Transfer of money. Otherwise, Bank
charges a certain amount on for effecting remittance through Mail Transfer. Bank
Charges are announced through a circular bi-annually.
PROCEDURE FOR MAIL TRANSFER.
1. First a voucher is filled and the required amount is deposited at the cash
counter
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2. The cash department sent the MT voucher to the accountant for scrolling
3. MT is prepared and the authorized officers affix signature on it.
4. Then the MT is dispatched to the concerned branch for credit into respective
account.
PAYMENT ORDER.
A payment order is a written order issued by the Bank on its own branch, drawn upon
and payable by itself to pay a specified sum of money to the person. The purpose of
payment order is to transfer the fund form one place to another place. It is usually not
issued in favor of the parties of other cities.
PENSION DISBURSMENT DEPARTMENT
The pension disbursement department is responsible for making pension payments to
Government Pensioners. The National Bank of Pakistan was Pakistans leading
institution which performs the function of pension payments or disbursements to
pensioners. The person who wants to receive his/her pension from National Bank of
Pakistan can open an account with any branch of National Bank of Pakistan. The bank
performs this function through Demand Draft Purchase or simply called DD Purchase.
So it has very important role in payment to the pensions holders this department
performs following functions:
Making Pension Payments
Opening of Account of Pensioner
Entry of amount paid to pensioner in Government Pensioners Register
Verifications of Signatures of Pensioners
Making Demand Draft Purchase Register
Loan to general public
Bank is given to the customer against gold. Band reserve the gold of on tola and give
loan Rs=25000/= and received the mark up at the rate of 15.50%. For example if any
customer take loan Rs. =100000/= against his gold, that customer give mark up extras
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=15500/= at the rate of 15.50% with the principal amount. If loan holder don\t response
to the bank during or after the year then bank issued a notes in which bank informed the
customer that band has the right to sell of your gold in order to fulfill the loan amount. If
bank cant recover its loan amount to, the bank recover amount through court.
Loan to servants
These loans are generally given to the employees of the Bank. These loans are given
for:-
1. Purchase of motorcar.
2. Purchase of motorcycle.
3. Purchase of computer.
4. Construction/ purchase.
These loans are repayable in monthly installments directly from the salary of the
employees. Some loans are free of mark up and on some markup is charged.
Introduction to cheque
Cheques book is such book that issued to the account holder. It is consisted 25, 50, 75
or 100 leaves. Per leave is Rs. =5/=. It is used by the customer to withdraw his account
from his bank account.
Date
Account no.
Leaves no
Pay
Amount in figure
Amount in words
Account holder signature space
Introduction to the Pass book
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Pass book Is now issued to thumb holder without any charges. It is consisted of
Title of account
Picture place
Account no.
Address
Balance
Bogus cheque
When there is no balance in the account holder and he issued a cheque to the third
party to order its payment then it is a bogus cheque. So bank protects it through memo
receipt. Cheque is bogus if
Effects not yet cleared, please present again
Not arranged for
o ----payees endorsement require
o ---payees endorsement irregular
Insufficient funds
Drawers signature differ
Payees endorsement required bank guarantee
Alternation required full signature
Cheque is out of date
Cheque is postdate
Amount in words and figure differs
Crossed cheque must be presented
Advice not received from issuing branch authority
Payment stopped by the drawer
Payees separate discharge to the bank
Full cover not received
Funds drawn against not yet received may be present again
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5.4.6Detail description of the tasks assigned
I have done internship of two months in NBP. It is great chances for me to learn
practical experiences and knowledge about the various departments. I got the
knowledge about current accounts, PLS saving account, debit voucher, credit voucher,
process of new account open, the persons who able to open account, the persons who
not able to open the account, types of accounts, transfer, bogus cheque, memo receipt,
clearing works etc. I have divided it according week that is mention above. As stated
above in the weekly schedule of my internship. I have gone through different
departments of general banking risks such as the clearing department, remittances
department, opening a bank department, money grams, and advance section and a
large number of tasks in this section is for two weeks of my internship at the National
Bank of Pakistan Jandu-ke- Goraya branch of the kind guidance of my supervisor Mr.
Amir Cheema On the first day of my internship my companions introduced me to all
employees in the bank and tell me about the different departments of general banking
risks involved in the bank and the activities conducted in these departments.
The next day I join the pension cell and this cell I almost made increases in the pension
and the pension issue and the scrolling of the amount of the pension and the calculation
of the total at the end of the day. In the same week I also join the department advances
in the industry and learn about the different types of credit offered in the industry, theirneeds, abilities, and interest and calculations, "the renewal of the cases and closing the
various cases in the credit department. I have been through several departments and
performed the various tasks given to me by my immediate supervisor. At the end I will
only say that I really enjoy working of banks and learn a lot about banking, which every
person should know who is a general account and dealing with the banks familiar with
these procedures really help in the routine life, while trading in banks.
So far I have spent two weeks in the bank and clearing work in the department and
practical implementation of the clearing activities. Now I have to shift from clearing of
remittances department. Remittances from the word it makes clear that the transfer of
funds from one place to another within a country or outside the country. After the
implementation detail with my direct supervisor about the department and the clearing
operations conducted in this section. DD is a written order from the branch of the bank
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account of the customer to another branch of the same bank to pay certain amount to
the customer. DD issued for specific other than the place of issuance.
A draft is a check drawn by a bank for its own agency or other branch of another bank in
another, the claim to pay on demand a certain amount of money that has already been
received to the person named on it. In this section I started making the DD Pay Order
etc the instruments for the purpose of the transfer of funds used from one place to
another place in the same branch or the other on the same bank branch. By filling out
the voucher and the cash counter for accepting the money and paying the slip in desk.
After this I know about the various other activities in this section is not, as the receipt of
funds by completing the receipt and acceptance of required documentation and passing
the cash counter and receiving checks from the same branch and honoring checks
thesis presented as it is the responsibility of the industry and to counter this I have come
to know the sharp fundamental things to the checkout and fixing the stamps.
I also join the Western Union branch. In this cabin I treat the customers at the branch for
receiving remittances sent by their relatives, friends, etc. There were two types of
remittances through Western Union and the second direct transfer of the National Bank
of Pakistan. In this cabin I agree with the application of CNIC of the customer and the
secret code of eight digits. Then enter the information in the online form Western Union
and if the information matches than taking the print and fixing the marks.
It is the fifth week of my internship; like clockwork and I am learning fast and I got the
account opened in the department store to close. My immediate supervisors tell me in
detail about the department. Opening an account is basically the step of building
customer relationships baker and guided me on the different types of accounts are
offered in the industry and the fundamental requirement of opening an account. First,
the customer reach the age of majority and a national identity card to receive the CNIC
and fax it to the regional offices of NADRA for the purpose of verification and after
verification of the other basic requirements, such as knowledge about the nature the
customer's source of income etc to fill the account opening form and receive this form
from the customer and takes the customer's signature on the signature model and the
issuance of the check book and filling the deposit cash slip for the first deposit required .
In the last 15 to 18 days of my internship, I was guided by my immediate supervisor
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about the department and the clearing operations conducted in the department and the
importance of the clearing department of a bank. He tells me about the intercity clearing
and how that service is performed by the NIFT and the functioning of the NIFT and the
role of the banking industry, which operates as a subsidiary organ of State Bank of
Pakistan then I started working when practically my supervisor guided me how practical
the check clearing for active and how to check for the clearing send and receive. But
first of all he tells me what kinds of checks, the Customs Clearance, Customs Clearance
including the checks drawn in the industry, other than the controls of the National Bank
of Pakistan. I started receiving checks for Clearance by filling out the coupon and
attaching the check with the slip of NIFT and then write the name of the person, the
amount, check number, city, and the bank and the introduction of the e-mail box of the
NIFT. All day I enter same activity in the clearing department, and I enter the Clearance
nearly two days continuously and I was enjoying this activity and feel good.
Then I find out about the outward clearing and how to control our branch established in
another branch or city received and I started receiving these checks and the writing of
these checks in the registered and making these checks on the account counter knows
the purpose of clearing, such as the clearing of the amount actually presented in the
respective presented with the signature and the signature on the signature copy. After
active and passive clearing I was quite aware that the areas not included in the intercity
and what NIFT is not providing the services of the clearing house checks accepted for
Clearance to these remote branches for the purpose of clearing to send. These checks
are sent by courier such as TCS, and postage costs are received by customers.
5.4.7 Internship Learning Summary
The main purpose of doing an internship is not only to meet the academic requirementor the achievement of good quality, but also to learn about the application of our field of
study in our relevant market. During of my internship, I learned a lot and learn the real
impact on my future life or career or social life in a society. In this learning phase the
institution you are doing your internship mater also a hope, as the cultural institutions in
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the core values and beliefs of the people and their attitude towards the organization of
these elements influence the learning process.
Skills and Qualifications:
Internship is the best source of enhance your skills, experiences, knowledge and public
relationship about the practical life.
Before the beginning of my internship at the National Bank of Pakistan Limited, I was
just thinking it was a regular activity to do an internship, because students usually do
not show a real interest in this healthy activity as I've seen or observed in my area but in
my opinion completely wrong attitude that develops in the students. I have learned
many of the skills. I shall share some of those skills I have learned throughout this
period of the internship.
How to deal with customers or a community and showing patience in a difficult
situation and making people feel they can trust you and then actually overcome
the prevailing problems.
How can I post to absorb pressure and achieve the desired result brave step
The development of coordination between job performance and between yourlifestyle so you never have enough of the routine activities of your professional
life
To improves my communication skills and above all the talking and the
influencing power. How to work in a team led by someone and how to deal with
colleagues in your professional life.
Paying respect to the desired people and appreciate the work of others.
The most interesting and important things I have learned and skills developed in
me because of the Internship communication with hundreds of clients I know
about the psyche of people with communication.
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To manage the finance
Customer relationship management
Responsibilities:
Firstly I undertook the responsibility of the punctuality and the
development of the attitude I need it on time so that everyone can not
develop the negative thinking about me
As mentioned in the daily work report section that I've gone through
several general banking counters and I have different responsibilities in
this period in each department. Now at this point I will generally talk aboutthe responsibilities I have undertaken in this period listed below. Does it
work hard and accomplish the assigned tasks on time.
Be ready to do something new or to learn something new in the field
Affects of internship on future career plans
It is true that every one feels hesitation in new place. Befo re the internship I havent
practical experiences about any thing. I was very confusion about my internship.
Before the beginning of my internship at a bank, I have some confusion about the
banking system of Pakistan, as the environment of the banking sector by my friends and
family I was little aware, while thinking about their career in this industry, but after this
stage removes all the confusion of the mind. No doubt the operation is quite difficult for
the banks and it really affects the social and family setup of a person over the jobs in
other industries, but someone has to sacrifice something to the excellent position and a
clear position in an institution of the future because too mush Banking scope and onecan grow as he dreamed in his life with hard work and dedications. So I have decided to
do my specialization in finance field and may Allah bless me to come in banking sector.
Correlation Between the internship activities and class room knowledge
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There is no difference in class room activities and practical work in the organization.
The practical work is very easy as to compare with theoretical work. It is my own view
that the activities I have done in the classroom and actually working in the market of the
correlation, but not too many highly correlated in my opinion. So I think there is a need
to change the academic syllabus and classroom activities that can be the future
workforce, according to the market requirement to produce.
Finally I just want this department that this sort of healthy activities in our education
system must be fostered at all levels with students how their academic knowledge into
practical work that will benefit him in his future life to be cleaner
6.1 Conclusion
It is true that banking sectors is playing important role in the redevelopment o f thecountry. It is playing role like blood in the economic development. It appears from this
report and the accounts of the NBP will progress by leaps and bounds an aggressive
and innovative financial institution and continue to stick to the tradition of understanding
the customer needs and looking for new ways to serve them, the earnings of NBP have
grown considerably in recent years and this trend is expected to continue into the future.
Further integration and productivity will result in better performance in terms of turnover
and service quality in the coming years, therefore, we conclude that NBP is a very
prosperous present and future, in which the shareholders of wealth maximization is
assures. The strong leadership of Directors and management and the continued efforts
of staff at the National Bank will be able to more superior products and services to
clients and contribute more to economic and social development of Pakistan, while the
development of a greater future. Side by Side of the "I think if the bank would cover
these recommendations and it would control in such a situation that will actually lead to
the path of prosperity, development and integrity of Pakistan
6.2 General observation about the sector
The banking sector in Pakistan has great potential for investment and job creation for
young and energetic generation and offers bright future. No doubt the job is a banker
and difficult to achieve the goals, but one can find the status of respect and honor to
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earn in society. But the need of time is to solve the economic crisis and terrorism in the
country. The foreign investor to find the potential and willingness to invest in the banking
sector, but due to terrorism are not very well feel that it is a safe investment because of
this reason they recover their investment and the need to the problem and increase
foreign and domestic investors to invest in and play a vital role in economic
development of the country.
6.3 SWOT ANALYSIS
The SWOT analysis is done by the organization for the environmental scanning. The
strength and weaknesses and opportunities and threats are analyzed by organization
from the external environment. NBP SWOT analysis is given below
Strength
Weakness
Opportunities
Threads
6.3.1 STRENGTH
It is a single bank in Pakistan that control by the Govt.
Huge amount of cash transition are traded from NBP.
One of the National Bank's brand is its great strength. .
Now the bank has the ability to compete with multinational bank and keep pace
with the changing and rapidly expanding world of the computer have become
necessities today.
Another competitive advantage that the bank has on the rest of the competitors is
the company growing globally for a large catering and large group of customers
and maintaining standards of excellence worldwide and other strengths of NBP.
Standard services
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Huge amount of deposits
National Institutions
The great strength of NBP is owned by the Government of Pakistan. So people can
believe and be able through their large investments in NBP without the fear of failure in
the future and thus NBP is the most reliable and trustee institution inPakistan
ORGANIZATION CULTURE
NBP organizational culture was very friendly and interesting. Employees have a very
cooperative environment among themselves. They have created loyalty to the
organization to deviate from their future efforts and energies. The staffs take the
organizational problem personals and try their best for the prosperity of the
organization.
STRATEGIC TOP MANAGEMENT
Fortunately NBP has from time to time best top management. Currently, the NBP
President he is the person who has saved the lives of the organization and a major
contribution
INDUSTRIAL POLICIES
NBP helps the government on the implementation of its industrial policies with respect
to economic growth of the country.
LENIENT POLICY WITH THE CLIENTS
Dit is een van de beste beleid van NBP dat het niet onbeschoft gedrag gehouden met
deze klant indien zij te laat in hun terugbetaling van de lening. Maar het heeft neemt
mildere manier in het omgaan met hen, helpt zij haar klanten in de terugbetaling te
maken herschikking en herstructurering van hun leningen.
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6.3.2 WEAKNESSES
National Bank created its own weakness by downsizing. As a result of downsizing
several experienced and dedicated employees were either forced or offered the
opportunity to leave.
LESS ATTENTION TO THE RURAL DEVELOPMENT
NBP portfolio that they finance projects only in big cities of Pakistan. But a reasonable
attention is needed in the project financing of rural-based industrial project in the
country.
POOR ADVERTISEMENT
I observe this sharp, in comparison with other banks. NBP is very poor in advertising
themselves and establishing that many works in the development of the country, but
unfortunately most people in business to the award of the .
POOR NETWORK
NBP 1255 has offices in major cities of Pakistan and abroad that other competitors do
not have despite all the branches are online and yet people have to wait.
Political interference
Political interference in the recruitment system
Uncertainly among the employees due to threat of downsizing
6.3.3 OPPORTUNITIES
.
National Bank has very good prospects for the future. They plan the region their past
glory, not only in terms of profitability but also the latest technology and competent
workforce. Moreover, NBP is the only bank that has facility of collecting bills from 9 Am
to 5 Pm. Hours. NBP is considering setting up an exclusive utility bank in collaboration
with a private company that would provide this service for 12 hours.
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GOODWILL AND BETTER IMAGE
NBP has the advantage of generating more deposits and attract valuable customers
due to better image in the business world. NBP also has advantage of increasing credit
lines. This is only due to proper treatment and a better image, that NBP has direct credit
lines acquired from abroad only be achieved by a better image can NBP help in an
explanation of its activities.
GROWTH IN THE INDUSTRIAL SECTOR
NBP important function is to finance projects and does it with full commitment.
Fortunately industrial sector is now-a-day Pakistan is growing again so the business
opportunities of NBP.
6.3.4 THREATS
DINSTABILITYPOLITICAL INFLUENCE AN
SICK PROJECTS
LACK OF MODERN BANKING TECHNIQUES
DINSTABILITYPOLITICAL INFLUENCE AN
This is the major threat to any business organization in Pakistan because of politicalinfluence NBP officials in the financing of projects that are not viable or write off the
loans are still able to pay the political influence caused many problems in daily course of
business as profitability of NBP. Political industry is even a threat to NBP in the sense
that once the policies and procedures approved by the government.
LACK OF MODERN BANKING TECHNIQUES
NBP next fifty years old style of banking in the computers of NBP Symphony word
processor is still used. What is the oldest word processor because of this deposit is
looking to be fixed, due to the provision of credit cards and other such services from its
competitors both local and foreign banks, it seems limiting factor in deposit mobilization
efforts of the corporation.
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7. RECOMMENDATIONS & SUGGESTIONS
NBP is an effectively operating profit and making organizing and carrying out its
activities under a particular system of procedure. The main regulatory body is the State
Bank of Pakistan, which provides policy guidelines and ensures that money market
operates on the basis of sound professional. While head office sets the whole
procedure of the functions and operations. This procedure is upgraded over time in
order to improve access and basic procedures for the effective regulation of its
capabilities in order to bring them at par with international practices. Here are some
suggestions that my opinion can add some data for efficiency and better performance of
the NBP as an organization in general and as a main branch in particular.
The recommendations are as follows
Professional training
Delegation of authority
Performance Appraisal
To Over Come Problem of Space and Furniture
To Over Come Problem of Space and Furniture
Need Qualified Staff
Link with the Head Quarter:
Clean Loans
Decreasing Administrative Expenses
Technological Advancement
Avoid Political interference
Complaints of Customer
Marketing Policy
Professional training
NBP staff lacks professionalism. They do not have the necessary training to do the job
efficiently and properly. Although staff colleges in all major cities, but they are not
performing well. For this purpose, these colleges have to reorganize staff and their
curriculum should be done in such a way to help employees understand the ever-
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changing global scenario economic growth. Pakistan Banking Council should also
initiate several programs to equip staff with much needed professional training.
Delegation of authority
Bank employees should be given a task and authority and they should be asked for
their responsibility. Pays proper attention to each job and concern bodies are
responsible to delegate authority to which they think will perform the batter.
Performance Appraisal
Manager should strictly monitor the performance of each staff member in particular the
activities of the branch manager. All they have to be given in accordance with their
performance and result in the form of rewards to motivate and encourage them to work
more efficiently.
To Over Come Problem of Space and Furniture
In this critical analysis, the problem is discussed. To overcome this problem, it is
suggested that a separate section should be done within the branch. It should address
only the position of treasurer, salaries and pensions of federal or bank staff to do these
functions at the time of the evening.
Need Qualified Staff
Necessary, qualified personnel should be provided to expand the purpose of improving
the functioning of the branch. Especially a telephone operator should be appointed.
Link with the Head Quarter:
NBP is not online yet even at the age of 21-century at least 100 main branches of the
NBP has established a direct link to the quarter, head to Karachi, via Internet or
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Intranet. This will make management functions and decision-making easier and
convenient.
Clean Loans
Clean loan or overdraft facility clean is customer lending to consumers without any
security. These types of small loans, however, should not extend to anyone, because
once these loans are provided to people with blue eyes of management and they
become a part of bad debts.
Decreasing Administrative Expenses
Bank should lower their administrative costs. These were Rs 12 billion in 2004. That can
be done while lying off surplus pool of employees with the golden handshake scheme.Branches that are not used much can be closed. An employee may be how to control
costs of the bank. That will yield positive results in the future.
Technological Advancement
I would like to suggest that at least all the main branches of the NBP should be fully
computerized in order to expedite the process dealing among bankers and their clients.
Each department should ensure a computer with adequate training (especially
Advances, Deposits and Foreign Exchange Department) Daily records must be entered
directly into these computers, (rather than enter the total daily transactions after banking
hours).
Complaints of Customer
There should be an information desk to provide information and receive customer
complaint to the bank. There is no complaint box available in branches and not every
person appointed to hear complaints. Any person may go to the manager to appealbecause most people are hesitant. So I suggest to management to install a box on line
at the branch, and recruit a special person for this guide consumers when they are not
able to manage some difficulties in banking issues.
Avoid Political interference
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Political interference is the second largest problem for the National Bank of Pakistan. So
it is very important to avoid political interference in banking operations.
7.1 Recommendations with their feasibility (economics, political,
financial)
The outlook and interior lay out of the branches is another thing which needs
to be improved.
The procedure for providing services must be easier and straight forward not
involving long procedure for simple task.
The bank should improve its pension scheme in order to avoide the
complexity.
The bank should develop software for pension disbursement.
NBP, being the only lending arm to the government for public sector
development should design, develop and deliver product and services for
economic growth.
The NBP should adopt modern banking tools and techniques. Quality
leadership, clear vision, investment in IT infrastructure and human resource
development.
The bank should improve the quality of training of its employees and the
integrity, controls and efficiency of its systems, processes and financial
reporting.
NBP major fault is that wasnt keep its pace with on going changing in
banking industry unlike other bank. Now this bank combining all it power and
trying to approach other banks.
Latest reorganizing efforts are necessary in order to make it cost effective
also making its facility accordingly to modern banking.
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8. REFERENCES
http://www.nbp.com.pk/Saibaan/index.htm
http://www.nbp.com.pk/advancesalary/index.htm
http://www.nbp.com.pk/CashnGold/index.htm
http://www.nbp.com.pk/StudentLoan/index.htm
http://www.nbp.com.pk/nbp/NBP_Treasury.jsp
http://www.nbp.com.pk/nbp/Treasury_Products.jsp
http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp
NBP Annual Report 2009
http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf
NBP Quarterly Report September 2007
http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
NBP Quarterly Report September 2007
http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
http://www.nbp.com.pk/Aamdani/index.htm
http://www.nbp.com.pk/Premium/index.htm
http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdfhttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/nbp/About_Us/About_US.jsphttp://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf