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CHAPTER 1
INTRODUCTION
Background of the organization
As part of the academic requirement for completing MBA (Finance) Master of
Business Administration of the students are required to under go two months of
internship with an organization. The internship is to serve the purpose of
acquainting the students with the practice of knowledge of the discipline of
banking administration.
This report is about National Bank of Pakistan. NBP was established in 1949 and
since then, it has expanded its network, becoming the largest commercial Bank of
the country. It offers different products of services to its customers.
Purpose of the internship
The main purpose of the study in hand is together relevant information to compile
internship report on National Bank of Pakistan.
To observe, analyze and interpret data completely and in a useful manner.
1. To work practically in an organization.
2. To develop interpersonal communication.
3. To develop perceivably in communication.
Scope of Study
As an internee in National Bank of Pakistan the main focus of my study research
was on general banking procedure in one of the branches of NBP. These
operations include remittances, deposits, advances, foreign exchange, account
opening, ATM, dispatch and clearing departments.
Similarly different aspects of overall of NBP are also covered in this report.
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Methodology
The report is based on my two months internship program in National Bank of
Pakistan. The methodology reported for collection of data is primary as well as
secondary data. The biggest of information is my personal observation while
working with staff and having discussion with them. Formally arrange interviews
and discussion also helped me in this regards.
1. Primary Data:
Personal observation
Interviews of staff
2. Secondary Data:
Manuals
Annual reports
Internet
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CHAPTER 2
HISTORY OF NATIONAL BANK OF PAKISTAN
Golden History Of National Bank Pakistan
In 1949 (September) U.K (United Kingdom). devalued its currency, India
followed suit but Pakistan did not. India said we had contravened the agreement of
keeping both currencies at par. We said we had not done that, India had done it
arbitrarily without consulting us. On October 3, 1949 the two central banks were
to announce the new par value of both currencies but India denied a day earlier.
India also froze our trade - balance surplus that is still an unsettled dispute.
India also withdraws the Marwari merchants who were employed annually for
movement of jute crop by financing it. There being no jute industry, prices fell
sharply, foreign banks and foreign merchants stood aside and an agrarian unrest
was threatening.
Two Ordinances were, therefore, issued
1. Jute Board Establishment Ordinance &
2. NBP Ordinance dated 08.11.1949
National Bank of Pakistan was established on November 9, 1949 under the
National Bank of Pakistan Ordinance 1949 in order to cope with the crisis
conditions which were developed after trade deadlock with India and devaluation
of Indian Rupee in 1949. Initially the Bank was established with the objective to
extend credit to the agriculture sector. The normal procedure of establishing a
banking company under the Companies
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Law was set aside and the Bank was established through the promulgation of an
Ordinance due to the crisis situation that had developed with regard to financing of
JUTE
Trade. The Bank commenced its operations from November 20, 1949 at six
important jute centers in the East Pakistan and directed its resources in financing
of jute crop. The Banks Karachi and Lahore offices were subsequently opened in
December 1949. The nature of responsibilities of the Bank is different and unique
from other banks/financial institutions. The Bank act as an agent of the State Bank
of Pakistan for handling Provincial / Federal and Government Receipts and
Payments on its behalf. Mr. Ghulam Farooq was chairman Jute Board and Mr.
Mumtaz Hassan was chairman NBP. Until June 1950, NBP remained exclusively
in jute operations, thereafter-other commodities were also taken-up. After that Mr.
Zahid Hussain, Governor SBP assumed additional charge also as chairman NBP's
Board of Directors, and Mr. M.A. Muhajir became its first M.D.
In 1952 NBP replaced Imperial Bank of India. Mr. Mumtaz Hassan as Acting
Governor of SBP negotiated this arrangement. In 1962 when Mr. Mumtaz Hassan
became MD (He had already served NBP for 10 years as its Chairman of
government Director), the number of branches had increased from 6 to 239 and
deposits from Rs.5 crore (50 million) to 106 crore (one bn & 60 mln), profit from
3 million (3 Lac) to 21 million (2.1. crore) and the staff increased from 380 to
7091, as compared to 1949-50. In Dec. 1966 its 600th branch was opened raising
the deposits to 2.31 bn. and staff to 14, 963. Up to 1965, the shareholders had
received 225% of their original investment.
The Bank has also played an important role in financing the countrys growing
trade, which has expended through the years as diversification took place. Today
the Bank finances import/export business to the tune of more than Rs.70 Billion,
whereas in 1960 financing under this head was only Rs. 2 Billion.
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The field is being de-layered to improve customer services and enable faster
decision-making. As a result of this de-layering zones have been eliminated and
the numbers of
Regions have been increased. Organizational hierarchy at the regional level has
been restructured and operational and business activities have been completely
separated. This separation will improve communication, decision-making and
promote teamwork.
For the third consecutive year, the Bank is recognized as the best Bank in Pakistan
for the year 2004 by the prestigious periodical. The Banker UK (a subsidiary of
Financial Times Group). Were expanding horizons, reaching out, being thereand bringing something for everyone. After all, we are The Nations Bank
PRESIDENT MESSAGE
It gives me great pleasure to announce that National Bank of Pakistan is gearing
up to the challenges faced by the domestic banking industry due to innovations
and advances in the international banking world, which is the consequence of
globalization.
The bank wishes to effectively utilize the financial assistance being extended by
the Government of Pakistan for banking sector reforms aimed at reducing
operating costs and improving profitability.
National Bank of Pakistan is distinct from other banks in that it has a nonprofit
and service oriented motive, which has manifested itself in the area of salary
deposits of government employees and payment of utility bills. The bank renders
both of these services across the country reaching as far as the remotest regions;
from our northern borders to the Arabian Sea. These services do not contribute
towards the earnings of the bank; rather they put pressure on our resources.
Nevertheless, we are committed to serving small savers and the general public of
the country. National Bank is everyones and does not only serve corporate
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customers. By extending and targeting our research to improve bank earnings,
through customer focus of our commercial and corporate branches, and by
enhanced efforts towards the development of human capital, we shall very soon
transform the bank from a bureaucratic organization to a fast paced, modern, andcompetitive bank.
In conclusion, I firmly believe that we have the vision, which will enable us to
achieve even better results, safeguard the interest of our customers and to assist us
in our march towards progress and prosperity in future.
S. Ali Raza
Chairman & President
VISION STATEMENT: To be recognized as a leader and a brand synonymous
with trust, highest standards of service quality, international best practices and
social responsibility.
MISSION STATEMENT: NBP will aspire to the values that make NBP truly
the Nations Bank, by:
Institutionalizing a merit & performance culture.
Creating a distinctive brand identity by providing
the highest standard of services.
Adopting the best International Management
practices.
Making Shareholders values.
Discharging our responsibility as a good
corporate citizen of Pakistan & in countries where we operate.
CORE VALUES:
Highest standard of integrity.
Institutionalizing teamwork & performance
culture.
Excellence in service.
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Advancement of skills for tomorrow challenges.
Awareness of social & community response.
Value creation for all shareholders.
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ORGANIZATIONAL HIERARCHY
PRESIDENT
SENIOR VICE EXECUTIVE PRESIDENT (SVEP)
EXECUTIVE VICE PRESIDENT (EVP)
SENIOR VICE PRESIDENT (SVP)
VICE PRESIDENT (VP)
ASSISTANT VICE PRESIDENT (AVP)
OFFICER GRADE III
OFFICER GRADE II
OFFICER GRADE I
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Objectives Of NBP
Objectives are ends towards which an enterprise activity is aimed. The purpose of
business is production and marketing of economic goods and services but to
accomplish these objectives to a number of enterprise objectives may benecessary.
National bank of Pakistan has certain objectives. These objectives are
(1) Advancing loans:
One of the main objectives of NBP is advancing loans to industrialists and traders
against security of stock, debentures or other securities
(2) Accept deposits:
Bank provides deposit facility to its customers. The types of deposits are
Profit and loss saving accounts
Fixed account
Current account
(3) Remitting of funds:
The bank provides the facility to its customers remitting large amounts of
money in the form of bank Drafts, Telegraphic Transfer, Mail Transfer to where
ever the customers want.
(4) Sale of promissory notes:
To sell and realize the proceeds of sale of any promissory notes, debentures, stock
receipts, bonds, shares etc.
(5) Selling and realizing property of bank claims:
To manage sell and realize all property whether moveable or immoveable which
may come in any way of the bank in satisfaction of its claim.
(6) Investment or underwriting of stocks:
To invest the funds of the bank in or the underwriting of any of stocks, funds,
shares securities, debentures, bonds or scripts or other securities for money issued
by any public limited companies and to convert them into money when required.
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Branches & Centers
Branches:
Currently more than 1200 branches are working in over all Pakistan in different
cities and regions including all major and minor cities of Pakistan.Online Branches:
Following are the online branches that are currently working in Pakistan.
Karachi
Islamabad
Rawalpindi
Gujar Khan
Sialkot
Gujranwala
Skhupura
Hyderabad
Quetta
Lahore
Burewala
Multan
Muzaffarabad
Faisalabad
Peshawar
Kohat
Mirpur
Gujrat
Abootabad
Bhawalpur
DG Khan
DI Khan
Jhang
Ladkana
Mardan
Sahiwal
Sargodha
Sucker
Jhelum
Wah Cantt
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Swift Centers
SWIFT is a main center that is interconnecting all branches with each other.
SWIFT channels mainly do the international transactions of NBP. These
transactions include Foreign Exchange Dealings, Foreign Telegraphic Transferand Letter of Credit.
Through these channels NBP Super Market is sending messages for Letter of
Credit, foreign trade etc. because in every branch SWIFT system is not available
because of problems.
Therefore other branches send application letters to local branches in which
SWIFT system is available and these local branches send message to international
branches for further transactions.
Different Schemes Conducted By NBPDifferent Schemes Conducted By NBP
National Bank of Pakistan always makes efforts to improve its goodwill in the
general public. It introduces different kind of schemes time to time.
The most popular schemes conducted by NBP are as under:
Hajj Mubarak Scheme
NBP Advance Salary Scheme
Fund Management Scheme
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Hajj Mubarak Scheme
For the convenience of a person with a limited income who desires to perform
Hajj, Hajj Mubarak Scheme is introduced. Moreover, National Bank of Pakistan
processes the Hajj applications of thousands of people successfully more than any
other bank in Pakistan.
NBP Advance Salary Scheme
Do you need urgent funds? If yes then head to National Bank of Pakistan and avail
NBP Advance Salary Scheme, which allow you to draw twenty months salary in
one go. This facility is available to permanent employees of the:
Federal and Provincial governments
Semi-governments, autonomous, semi-
autonomous, local bodies, and government corporations
Other corporations approved by NBP
No guarantee, collaterals, or insurance is required to avail this scheme. NBP gives
the facility to repay the excessive amount within 1 to 60 months. The procedure is
very easy, just fill the application form and choice between 1 to 60 months and
take your NBP. NBP received 20% markup on this loan. It advances twenty
salaries at once.
Functions of NBP
The National Bank of Pakistan performs two types of function. It acts as an
ordinary commercial bank, and at places where there are no branches of State
Bank of Pakistan it represents Pakistan, that is why it cannot be privatized. As a
commercial bank it performs the following functions.
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Accepting of deposits of money on current
account, saving, term deposit and other profit and loss sharing accounts.
Borrowing money and arranging finance from
other banks.
Advancing and lending money to its clients.
Financing of projects including technical
assistance, project appraisal through long term/short term loans.
Buying, selling, dealing and discounting of bills
of exchange, promissory notes, drafts, bill of lading, other instruments of
securities etc.
Foreign exchange business.
Financing of seasonal crops like cotton, wheat,
rice.
Receiving of bonds, scripts, valuable etc. for safe
custody.
Carrying on agency business of any description
other than managing agent on behalf of clients, including government and
local authorities.
Generating, undertaking, promoting etc. of issue
of shares, bonds.
Transacting guarantees and indemnity business.
Undertaking and executing trusts.
Making investments in other banking companies.
Joint venturing with foreign dealers, agents and
companies for its representation abroad.
Participating World Bank and Asian
Development bank's lines of credit.
Utility services.
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Providing Hajj services to intending Hajis.
Agent to State Bank of Pakistan for collecting
Payment of pension on behalf of provincial and
central governments.
Treasury business.
Gold finances.
CHAPTER 3
SERVICES OF NATIONAL BANK OF PAKISTAN
Service is an identifiable, intangible activity that is the main object of a transaction
designed to provide want satisfaction to customers.
International Banking
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 financialcapitals 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 NBPs exposure to foreign
and domestic correspondence
Manage the monetary aspect of NBPs
relationship with the correspondents to support trade, treasury and other
key business areas, thereby contributing to the banks profitability
Generation of incremental trade-finance business
and revenues
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NBP offers:
The lowest rates on exports and other
international banking products
Access to different local commercial banks in
international banking
DEMAND DRAFTS
If you are looking for a safe, speedy and reliable way to transfer money, you cannow purchase NBPs Demand Drafts at very reasonable rates. Any person whether
an account holder of the bank or not, can purchase a Demand Draft from a bank
branch
Mail Transfers
Move your money safely and quickly using NBP Mail Transfer service. And we
also offer the most competitive rates in the market.
Pay Order
NBP provides another reason to transfer your money using our facilities. Our pay
orders are a secure and easy way to move your money from one place to another.
And, as usual, our charges for this service are extremely competitive.
Traveler's Cheques
Negotiability: Pak Rupees Travelers Cheques are a negotiable instrument
Validity: There is no restriction on the period of validity
Availability: At 700 branches of NBP all over the country
Encashment: At all 400 branches of NBP
Limitation: No limit on purchase
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Safety: NBP Travelers Cheques are the safest way to carry our money
Letter Of Credit
NBP is committed to offering its business customers the widest range of options in
the area of money transfer. If you are a commercial enterprise then our Letter of
Credit service is just what you are looking for. With competitive rates, security,
and ease of transaction, NBP Letters of Credit are the best way to do your business
transactions.
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Commercial Finance
Us help make your dreams become a reality
Our dedicated team of professionals truly understands the needs of professionals,
agriculturists, large and small business and other segments of the economy. They
are the customers best resource in making NBPs products and services work for
them.
Foreign Remittances
To facilitate its customers in the area of Home Remittances, National Bank of
Pakistan has taken a number of measures to:
Increase home remittances through the banking
system
Meet the SBP directives/instructions for timely and prompt delivery of remittances
to the beneficiaries
New Features:
The existing system of home remittances has been revised/significantly improved
and well-trained field functionaries are posted to provide efficient and reliable
home remittance services to nonresident Pakistanis at 15 overseas branches of the
Bank besides United National Bank (the joint venture between NBP and UBL in
UK)., and Bank Al-Jazira, Saudi Arabia.
Zero Tariffs: NBP is providing home remittance
services without any charges.
Strict monitoring of the system is done to ensure
the highest possible security.
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Special courier services are hired for expeditious delivery of home remittances to
the beneficiaries.
Swift System
The SWIFT system (Society for World-wide Inter- bank Financial
Telecommunications) has been introduced for speedy services in the area of home
remittances. The system has built-in features of computerized test keys, which
eliminates the manual application of tests that often cause delay in the payment of
home remittances.
The SWIFT Center is operational at National Bank of Pakistan with a universal
access number NBP-PKKA. All NBP overseas branches and overseas
correspondents (over 450) are drawing remittances through SWIFT.
Using the NBP network of branches, you can safely and speedily transfer money
for our business and personal needs.
Short Term Investments
NBP now offers excellent rates of profit on all its short-term investment accounts.Whether you are looking to invest for 3 months or 1 year, NBPs rates of profit are
extremely attractive, along with the security and service only NBP can provide.
Equity Investments
NBP has accelerated its activities in the stock market to improve its economic base
and restore investor confidence. The bank is now regarded as the most active and
dominant player in the development of the stock market. NBP is involved in thefollowing:
Investment into the capital market
Introduction of capital market accounts (under
process)
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NBPs involvement in capital markets is expected to increase its earnings, which
would result in better returns offered to account holders
N.I.D.A
National Income Daily Account The scheme was launched in December 1995 to
attract corporate customers. It is a current account scheme and is part of the profit
and loss system of accounts in operation throughout the country.
Trade Finance Other Business Loans
Agricultural finance
NBP provides Agricultural Finance to solidify faith, commitment and pride of
farmers who produce some of the best agricultural products in the World.
Agricultural Finance Services:
I Feed the World program, a new product, is introduced by NBP with the aim to
help farmers maximize the per acre production with minimum of required input.
Select farms will be made role models for other farms and farmers to follow, thus
helping farmers across Pakistan to increase production.
Agricultural Credit:
The agricultural financing strategy of NBP is aimed at three main objectives:-
Providing reliable infrastructure for agricultural
customers Help farmers utilize funds efficiently to further
develop and achieve better production
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Provide farmers an integrated package of credit
with supplies of essential inputs, technical knowledge, and supervision of
farming.
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Medium term loans and Capital Expenditure Financing:
NBP provides financing for its clients capital expenditure and other long-term
investment needs. By sharing the risk associated with such long-term investments,
NBP expedites clients attempt to upgrade and expand their operation thereby
making possible the fulfillment of our clients vision. This type of long term
financing proves the banks belief in its client's capabilities, and its commitment to
the country.
Loan Structuring and Syndication:
National Banks leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. Because we
understand our syndicate partners asset criteria, we help borrowers meet
substantial financing needs by enabling them to reach the banks most interested in
lending to their particular industry, geographic location and structure through
syndicated debt offerings. Our syndication capabilities are complemented by our
own capital strength and by industry teams, who bring specialized knowledge to
the structure of a transaction.
Cash Management Services:
With National Banks Cash Management Services (in process of being set up), the
customers sales collection will be channeled through vast network of NBP
branched spread across the country. This will enable the customer to manage their
companys total financial position right from your desktop computer. They will
also be able to take advantage of our outstanding range of payment, ejection,
liquidity and investment services. In fact, with NBP, youll be provided
everything, which takes to manage your cash flow more accurately.
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CHAPTER 4
ORGANIZATIONAL REVIEW
Work Done By Me
During my stay in National Bank of Pakistan, Main Branch Peshawar Cantt
Peshawar. I found it as among one of the best bank in Pakistan. As an internee, I
enjoy working their .NBP has a very cooperative staff .I worked there in very
congenial and supportive environment. The staff over there is always being ready
to guide about bank and its systems.
According to its financial statements it is on a way to progress. Due to its
miraculous working government bestowed its president Syed Ali Raza with
sitara-e-imtiaz in august 2005.
I joined National Bank of Pakistan, Main Branch Peshawar Cantt on 11 th August,
2008. First day, Mr. Abdul Rauf (the in charge of Advance department) introduced
me about the functioning of the branch and the staff. He told me that all
debarments are very important for banking functions. During the Two Months of
my internship, I worked in different sections of the branch and did the maximum
practice of banking system details of which is as under:
Departments In NBP Main Branch Peshawar Cantt
1. Foreign Exchange department
2. Credit & Advance department
3. Bills section/department
4. Remittance section/ department
5. Deposit section/ department6. Govt. section/ department
7. Cash section/ department
8. Establishment /administration section/ department
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Foreign Exchange Department
In this department I work for three weeks with Mr. Main Saqib Ashfaq, he
working in the deposit section. I also deal the Western Union Money Transfer
activities in this department. It has specific software which link with the Head
office of NBP. For receiving money the ten digits code number is require, the
name of receiver & sender is also require, along with this the NIC No of the
receiver is necessary. The amount transfer is also entering & it provides the
complete information. The detail of the process is print out. It has three parts on
for the customer, other for the in charge of department & the 3 rd is for the purpose
of sending o the Head office of NBP.
All the activities perform in this department are mention in the above chart of
department.
Credit And Advances Department:
It may be defined as:
The sale of goods and services and money claims in the present in exchange for a
promise to pay in future.
The most important activity of the bank is the granting of credit to the customers.
NBP provides short term long terms financing for domestic and international
trade. The policies made by central office of the cash can be amended on the basis
of the rules and regulation, economic risk of each country board of directors and
committee of the NBP made this type of decisions and informed about these
decisions to the branch managers.
The in charge of this department is Mr. Abdul Rauf. They are working under the
control of manager only & free of the control of operational manager.
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In this department I work five weeks I only perform the duty of President Rozgar
Scheme and Gold loan. The requirements & procedure of Gold loan is following.
Gold Loan Service
First of all the person who need the money from bank as in the form of credit the
NBP provide this facility under the Gold loan for this he need to get the ECIB
(Electronic Customer Investigation Bureau) through it checked that the customer
may or may not borrow money from any other bank of Pakistan. It is software that
is providing to all banks by SBP. After this step the NADRA verification of the
borrower NIC is made. And it is also the necessary step of Gold loan requirements
that the current account will be open in the account opening department, for thepurpose of deposit of insurance and installments to the bank. When it is clear than
the approval is made. The borrower is send to the ANDARSHER for the purpose
of weighting of Gold. The bank made a contract with the Goldsmith that he
performed the duty on behalf of NBP. He weight and valued the Gold and write a
receipt for bank. The bank receives the documents and Gold. The payment is made
to he borrower and the gold is kept in the locker of bank. Under the authority of
Chief Cashier.
The Gold loan is the demand finance. The form is containing of the following
requirements.
Proposal of Rs-------------.Terms & conditions.
Name
Limit
PurposeSecurity
Date of expiryDate of final adjustments
Date of markup
Mode of repayment
Documents
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President's Rozgar Scheme
if you are aged between 18 and 45 years, you could be eligible for easy
financing for self employment in the categories below:
NBP Karobar Utility Store
NBP Karobar Mobile Utility Store
NBP Karobar Mobile General Store
NBP Karobar Transport
NBP Karobar PCO
NBP Karobar Tele-Centre
In this department only provide the transport facility as Rickshaw. The
requirements & procedures for the product is the following.
ECIB, NADRA verification of NIC, current account. Application form, legal
documents, Authority letter, Sanction letter, Delivery order, purchase order,
registration, insurance. Repayment schedule, To Whom It May Concern, credit
approval memo, internal verification of applicant& witnesses.
Other services of this department:
This department also provides the service of House Building Finance, Car finance,
computer finance to the employees of NBP only. And Advance salary
is provide to those departments employees which has account with
NBP.
Account Openning Department
In this department, I gain the practical knowledge about opening account. This
department deals with opening current and saving account for its customers and all
matters regarding thereof. The customers opening current and saving accounts can
be categorized as following.
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Individual
Firm
Company
Trust
Staff
Others
Opening Accounts
In order to open an account, first of all the customers have to a verified NIC from
NADRA. The requirements of the account opening form are type of account,
nature of account, currency, Next of skin, personal information, signatures etc.
Types of accounts
Following types of accounts are open in NBP
Saving account
Current or demand account
Fixed account
Saving account (PLS)
This type of account is designed to encourage the saving habit of the customer and
lead to a long-term banking or investment relationship.
Bank saving accounts are in the nature of deposits accounts and are not normally
available for drawings. Rates of interest are typically ahead, by a small margin.
Saving accounts with the banking sector represent a very small proportion of total
deposits.
Current or demand account
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These are those deposits, which can be drawn by the depositor at my time by
presenting a cheque to the bank. People deposit their money in this account they
gave a ready command on their account in developed and under developed
countries of the world, a very significant part of money is kept under current ordemand account.
Fixed account
Fixed accounts are those, which are deposited for a fixed period of time and are
repayable after the expiry of stipulated time to the customers. Those people who
have surplus funds and want to have save investments deposit the amount in the
fixed account. The rate of interest given to depositor varies with the length ofdeposit, i.e. it is higher for longer period and lowers for shorter period.
Issuance of Cheque Book
After opening the account, a cheque book is given to the customer to sign upon
which the number of cheque book issued and the name of the customer is written.
Bank issues a cheque book against requisition. A cheque book may be of (PLS),
25 & 50 or 100 leave (current A/C).
A cheque book register is maintained by the office. In this register, the cheque
book inventory, cheque books issue is recorded.
Issuance Of New Cheque Book To Old Customer
The accountholders request for the new chequebook by presenting the requisition
slips along with the authority letter to the concerned office. His signatures are
verified before giving him a new chequebook. The presence of the accountholders
is compulsory to get a new chequebook. But if he sends a third person to get his
chequebook then the procedure is as follows;
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An authority letter is given to the third party by
the accountholders.
The accountholders verify the signature of the
third person on that authority letter. The bank officer gets the signature of that third
person to confirm whether he is the same to whom the accountholder has
sent.
The bank issues the new cheques book and authority letter is kept by the bank.
Clearing Department
In this department, I have worked for two weeks. The in charge of this department
is Mr. Muhammad Kamran, & the in charge of out station clearing is Mr. Amir
Alam Khan. Main branch receives the cheques from all of its branches and makes
the list of these cheques again. Main branch sends these cheques to the state bank
of Pakistan where a clearinghouse exits. In this clearinghouse the representatives
receive their cheques and go back to their bank's main branch. Then the main
branch sends these cheques to their relevant branches where the validity of these
cheques is verified and the accounts of the relevant clients are affected.
The major function of Clearing Department is to receive the cheques, which are
drawn on some other bank. The customer can get the money in his account
at NBP, from the cheques drawn on another bank. The bank accepts these
cheques and collects the amount from that bank on which cheque is drawn
through the Clearing House. Bank charges some commission for this
function.
Stamping
Early in the morning the cheques are received and than arrange in different sets.
All cheques are stamped by a number of different stamps, which is use for specific
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purpose. The original cheque will be marked with two stamps. Mostly used stamps
are:
National bank of Pakistan
Clearing Stamp
At the end of day, all cheques are counted and then scrutinized in bank-wise and
sent to the Clearing House.
Remittances Department
Remittance is the monitory transfer from one place to another place or from one
country to another country to fulfill the requirements of the customers by the order
of the customer.
I worked in this department for one week. In this department internees are advised
only to observe the working of transfer of money from one place to another place
of the country by the above modes of transferring money.
Issuing a bank draft it is necessary that the draft should be free from alternations.
All the details must be written clearly in ink. After issuance a demand draft it is
handed over to the applicant and its advice containing the particulars of the draft is
sent to drawer branch with its necessary information and payment of the draft is
making on its presentation.
I learn in this department also the basic of the following instruments:
Payment order (p/o)
Demand draft (DD)
Telegraphic transfer (TT)
Mail transfer (MT)
Pay Order
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It is an instrument, which is payable in demand .Pay order is also called the
bankers cheque drawn upon the issuing bank itself. It is not negotiable and
therefore, bankers tend to cross the instrument Payees account only to avoid the
possibility of dealing with instruments with forged endorsement. The pay order isissued favoring individuals, commercial concerns, and government departments.
On the presentation of pay order, the bank is liable to pay the amount to the
customer.
Demand Draft
If you are looking for a safe, speedy and reliable way to transfer money, you can
now purchase NBPs Demand Drafts at very reasonable rates. Any person whetheran account holder of the bank or not, can purchase a Demand Draft from a bank
branch.
Telegraphic Transfer
It is the message, which is sent from one branch to another on the order of payer to
payee through wire. It is one of the quickest means to transfer fund through the
use of telex/fax/internet or cable. Payment to the beneficiary is affected directly
by the drawee office upon identification or through credit into beneficiarys bank
account. As such remitting office is not required to issue any instrument payment
to the remitter for delivery to the beneficiary.
Mail Transfer
It is the same like TT, but in this type, the message is sent through mail rather than
telex. The procedure is same as TT, but the advice is sent through mail rather than
wired.
New Features:
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The existing system of home remittances has been revised/significantly improved
and well-trained field functionaries are posted to provide efficient and reliable
home remittance services to nonresident Pakistanis at overseas branches of the
Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, SaudiArabia.
Zero Tariffs: NBP is providing home remittance
services without any charges.
Strict monitoring of the system is done to ensure
the highest possible security.
Special courier services are hired for expeditious
delivery of home remittances to the beneficiaries.
Dispatch Department
I worked in this department for two days with Mr. Hamid. This department deals
in receiving of all the posted documents. They receive the posted materials posted
by other banks and institutions. Also mail theirown documents to other
organization. After receiving the documents it is recorded in the registered.
ATM Department
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I work in this department for three days .on the first day I fill the forms for those
customers whose ATM card are expired and issue the reminders to those customers
through their home address. The ATM is the separate department in the main
branch Peshawar cantt. It is operated by a single person Mr. Zahid. The NBP due tothe fraud in ATM card operation ban the transaction with other banks and the ATM
card of NBP not operative in those banks. They also cannot provide the facility of
Credit Card because the people cannot repay their dues to the bank.
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CHAPTER 5
FINANCIAL ANALYSIS
Financial Analysis
Financial analysis is an evaluation of a firmsperformance. The source of financial
analysis is the financial statements & Director reports. The main purpose of the
financial analysis is to give a clear picture of the financial position by studying the
relationship & comparison between the items in the statement.
The financial statements are the balance sheet and income statement. The balance
sheet summarizes the assets, liabilities and owners equity of a business at a point
of time, and the income statement summarizes revenues and expenses of the over a
particular period of time.
Seven Years Performance of NBP at a Glance (Rs. In million)
Year 2009 2008 2007 2006 2005 2004 2003
Items
Total assets 762,193 635,133 577,719 553,23
1
468,972432,80
3
415,089
Deposits 591,907 501,872 463,427 465,57
2
395,492362,86
6
349,617
Advances 340,677 316,110 268,839 220,79
4
161,266140,54
7
170,319
Investments 210,787 139,947 156,985 149,35
0
166,196143,52
5
71,759
Shareholders equity 70,907 53,045 37,636 24,900 18,134 14,279 11,959
Pre-tax profit 28,060 26,311 19,056 11,978 9,009 6,045 3,016
After-tax profit 19,033 17,022 12,709 6,195 4,198 2,253 1,149
Earning per share (EPS) 23.34 20.88 17.92 10.48 8.53 5.49 3.08
Return on assets (ROA) 2.49% 4.3% 3.4% 2.4% 2.0% 1.4% 0.8%No of Branches 1,243 1,250 1,242 1,226 1,199 1,204 1,245
No of employees 14,079 14,019 13,824 13,745 13,272 12,195 15,163
On the basis of the view of financial experts I also study and explain the financial
performance of the NBP of the last seven years. (2001 to 2007).
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NATIONAL BANK OF PAKISTAN
BALANCE SHEET
AS AT 31STDECEMBER, 2009& 20082009
(Rupees in 000s)
2008
(Rupees in 000s)
ASSETSCash &Balance with other
Banks
Lending to FinancialInstitution
investment
AdvanceOperating Fixed Assets
Deferred tax assets
Other Assets
94,873,249
37,472,83221,464,600
210,787,868
340,677,10025,922,979
-
30,994,965
78,625,227
40,641,67923,012,732
139,946,995
316,110,4069,681,974
-
27,113,698
TOTAL ASSETS 762,193,593 635,132,711
LIABILITIES
Bills Payables
10,605,663
Borrowings
Deposits & other accounts
Sub-ordinated loansLiabilities against assets
subject to finance lease
Deferred tax liabilities-net
Other liabilities
7,061,902
10,886,063
591,907,435
-
33,554
5,097,831
30,869,154
10,605,663
11,704,079
501,872,243
-
13,235
2,387,073
26,596,300
TOATAL LIAILITIES 645,855,939 553,178,593
NET ASSETS 116,337,654 81,954,118
PRESENTED BY
Share capital
Reserves
Unappropriated profit
8,154.319
15,772,12445,344,188
7,090,712
13,879,26032,074,677
Surplus on revaluation of
assets
69,270,631
47,067,023116,337,654
53,044,649
28,909,66981,954,118
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NATIONAL BANK OF PAKISTAN
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31st DECENBER 2009& 2008
2009
Rupees in000's
2008
Rupees in000's
Mark-up /return/interest earnedMark-up return/interest expensed
50,569,48116,940,011
44,100,93413,947,218
Net mark-up/interest income 33,629,470 30,153,716
Provision against non-performing loans and advanceReversal of provision for diminution in the value ofinvestmentsBad debts written off directly
4,723,084
(40,084)
39,899
30,075,723
(709,461)
5,284
4,722,735 2,371,546
Net mark-up/ interest income afterprovision 28,906,735 27,782,170
NON-MARK-UP/INTEREST INCOME
Fee, Commission and brokerage income
Dividend income
Income from dealing in foreign currenciesGain on sale and redemption of securities
Unrealized loss on revaluation of investment
classified as held-for-tradingOther income
6,781.6833,263,2461,042,8272,341,690
(31,964)
147,363
6,144,6282,891,7551,333,8401,169,515
(4,464)
627,618
Total non-markup/interest income 13,544,845 12,162,892 42,544,845 39,945,062
NON- MARK-UP/INTEREST EXPENSESAdministrative ExpensesOther provision/write offsOther charges
14,205,911168,02717,141
13,443,441(17,283)208,327
Total non mark-up/interest expenses 14,391,079 13,634,485Extra ordinary items - -
Profit before taxation 28,060,501 26,310,577Taxation-Current
-Prior years-Deferred
8,311,500391,497323,731
8,695,598530,65261,981
9,026,728 9,288,231Profit after taxation 19,033,728 17,022,346Unappropriated profit brought forwardTransfer from surplus on revaluation of fixed assets onaccount of incremental depreciation
32,074,67739,007
19,372,52341,060
Profit available for appropriation 51,147,457 36,435,929Basic earning per share
Diluted earning per share
23.34
23.34
20.88
20.88
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HORIZONTAL ANALYSIS:Profit & Loss AccountBalance Sheet
The horizontal analysis shows the comparison between the current and past year
performance of the organization by comparing the Balance sheet ant profit and
loss statement items. The formula use for horizontal analysis as follow.
VERTICAL ANALYSIS:Profit & Loss Account
Balance Sheet
In vertical analysis all the items of balance sheet and profit and loss statement are
divided by the total assets and total equity and liabilities and the revenue or sales
in balance sheet and profit and loss statement respectively.
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National Bank of Pakistan
HORIZANTAL ANALYSIS
BALANCE SHEET
AS AT 31STDECEMBER, 2009& 2008ASSETS
2009Rupees in 000s
2008Rupees in 000s
Increase/
decreaseRupees in 000s
%age
Cash &Balance with other Banks
Balance with other Banks
Lending to Financial Institution
Investment
Advances
Operating Fixed Assets
Deferred tax assets
Other Assets
94,873,249
37,472,832
21,464,600
210,787,868
340,677,100
25,922,979
-
30,994,965
78,625,227
40,641,679
23,012,732
139,946,995
316,110,406
9,681,974
-
27,113,698
16,248,022
(3,168,847)
(1,548,132)
70,840,873
24,566,694
16,241,005
-
3,881,267
20.67
(7.79)
(6.72)
50.62
7.77
167.74
-
14.31
Total Assets 762,193,593 635,132,711 127,060,882 20.00
LIABILITIES
Bills PayablesBorrowingsDeposits & otheraccountsSub-ordinated loansLiabilities against assets subjectTo finance leaseDeferred tax liabilities-netOther liabilities
7,061,90210,886,063591,907,435
-33,554
5,097,83130,869,154
10,605,66311,704,079501,872,243
-13,235
2,387,07326, 596,300
(3,543,761)(818,016)90,035,192
-20,319
2,710,7584,272,854
(33.41)(6.98)17.93
-153.52
113.5616.06
Total liabilities 645855939 553178593 92,677,346 16.75NET ASSETS 116,337,654 81, 954,118 34,383,536 41.95Share capital
Reserves
Unappropriated profit
8,154.319
15,772,124
45,344,188
7, 090,712
13,879,260
32, 074, 677
1,063,607
1,892,864
13,269,511
15.00
13.63
41.37
69,270,631 53, 044, 649 16,225,982 30.58
Surplus on revaluation of
Assets-net
47,067,023 28,909,469 18,157,554 62.80
116,337,654 81,954,118 34,383,536 41.95
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NATIONAL BANK OF PAKISTANHORIZONTAL ANALYSIS
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31st DECENBER 2009 & 2008
NATIONAL BANK OF PAKISTAN
2009Rupees in 000's
2008Rupees in
000's
Increase/DecreaseRupees in
000s
Changein %age
Mark-up return/interest earnedMark-up return/interest expensed
50,569,48116,940,011
44,100,93413,947,218
6,468,5472992793
14.6621.46
Net mark-up/interest income 33,629,470 30,153,716 3475754 11.52
Provision against non-performingLoans and advancesReversal of provision for diminutionin the value of investments
bad debt written off directly
4,723,084
(40,248)
39,899
3,075,723
(709,461)
5,284
1647361
(749709)
34615
53.56
(105.67)
655.09
4,722,735 2,371,546 2,351,189 99.14
Net mark-up/ interest income afterprovision
28,906,735 27,782,170 1124565 4.04
Fee, commission and brokerageIncomeDividend incomeIncome from dealing in foreigncurrenciesGain on sale and redemption ofSecuritiesUnrealized loss on revaluation ofinvestments classified as held fortrading
other income
6,781,683
3,263,2461,042,827
2,341,690
(31,964)
147,363
6,144,628
2,891,7551,333,840
1,169,515
(4,464)
627,618
637055
371491(291013)
1172175
(36428)
(480255)
10.36
12.84(21.82)
100.22
(816.03)
(76.52)
Total non-mark-up/interest
expenses
13,544,845 12,162,892 1381953 11.36
42,451,580 39,945,062 2506518 6.27
NON MARK-UP /INTERESTEXPENCESAdministrative expenseOther provisions/writeOther charges
14,205,911168,02717,141
13,443,441(17,283)
208,327
762470150744(191,186)
5.67872.20(91.77)
Extra ordinary items
-- - - -
Profit before taxation 28,060,501 26,310,577 1749924 6.65Taxation-Current
-Prior years-Deferred
8,311,500391,497323,731
8,695,598530,65261,981
(384098)(139155)261750
(4.42)(26.22)422.30
9,026,728 9,288,231 (261503) (2.81)
Profit after taxation 19,033,773 17,022,346 2011427 11.81Unappropriated profit/(loss) brought
forwardTransfer from surplus onrevaluation of fixed assets on accountof incremental depreciation
32,074,677
39,007
19,372,523
41,060
12702154
(2053)
65.56
(5.00)
Profit available for appropriation 51,147,457 36,435,929 14711528 40.37Rupees
Basic earning per share 23.34 20.88 2.46 11.78
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VERTICAL ANALYSIS
BALANCE SHEET
AS AT 31STDECEMBER, 2009 & 2008
2009Rupees
in 000s
%2008
Rupees
in 000s
%
ASSETSCash &Balance with other Banks
Balance with other Banks
Lending to Financial Institution
Investment
Advances
Operating Fixed Assets
Deferred tax assets
Other Assets
94,873,249
37,472,832
21,464,600
210,787,868
340,677,100
25,922,979
-
30,994,965
12.44
4.91
2.81
27.65
44.69
3.40
-
4.06
78,625,227
40,641,679
23,012,732
139,946,995
316,110,406
9,681,974
-
27,113,698
12.37
6.39
3.62
22.03
49.77
1.52
-
4.26
Total assets 762,193,593 100 635,132,711 100
LIABILITIESBills PayablesBorrowingsDeposits & other accountssub-ordinated loansLiabilities against assets subjectTo finance leaseDeferred tax liabilities-netOther liabilities
7,061,90210,886,063591,907,435
-33,554
5,097,83130,869,154
0.921.42
77.65-
4.40
0.664.05
10,605,66311,704,079501,872,243
-13,235
2,387,07326,596,300
1.661.8479.01
-2.08
0.374.18
Total liabilities 645855939 84.73 553178593 87.09NET ASSETS 116,337,654 15.26 81,954,118 12.90Share capital
Reserves
Unappropriated profit
53,044,649 8.
8,154.319
15,772,124
45,344,188
1.06
2.06
5.94
7,090,712
13,879,260
32,074,677
1.11
2.18
5.05
69,270,631 9.08 53,044,649 8.35
Surplus on revaluation of
Assets-net
47,067,023 6.17 28,909,669 4.55
116,337,654 15.26 81,954,118 12.90
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NATIONAL BANK OF PAKISTAN
VERTICAL ANALYSIS
ROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31st DECENBER 2009& 2008
2009
Rupees in
000's % age
2008
Rupees in
000's
%
ageMark-up/ return/ interest earnedMark-up/ return/ interest expensed
50,569,48116,940,011
10033.49
44,100,93413,947,218
10031.62
Net-mark up/interest income 33,629,470 66.50 30,153,716 68.37
Provision against non-performingloans and advancesReversal of provision for diminutionin the value of investmentsbad debt written off directly
4,723,084
(40,248)
39,899
9.33
(0.07)
0.07
3,075,723
(709,461)
5,284
6.97
(1.60)
0.01
4,722,735 9.33 2,371,546 5.37
Net-mark up/interest incomeafter provision
28,906,735 57.16 27,782,170 62.99
NON MARK UP /INTERESTINCOMEFee, commission and brokerageIncomeDividend incomeIncome from dealing in foreigncurrenciesGain on sale and redemption ofSecuritiesUnrealized loss on revaluation ofinvestments classified as held fortradingother income
6,781,683
3,263,2461,042,827
2,341,690
(31,964)
147,363
13.41
6.452.06
4.63
(0.06)
0.29
6,144,628
2,891,7551,333,840
1,169,515
(4,464)
627,618
13.93
6.553.02
2.65
(0.01)
1.42
Total non mark-up/ interest 13,544,845 26.78 12,162,892 27.5742,451,580 83.94 39,945,062 90.57
NON MARK-UP /INTERESTEXPENCESAdministrative expenseOther provisions/write offs/(reversals)Other charges
14,205,911168,027
17,141
28.090.33
0.03
13,443,441(17,283)
208,327
30.48(0.03)
0.47
Total non mark-up / interestexpenses
14,391,079 0.47 13,634,485 30.91
28,060,501 28.45 26,310,577 59.65
Extra ordinary / unusual items - - - -
PROFIT BEFORE TAXATION 28,060,501 55.48 26,310,577 59.65
Taxation- current-prior years
-deferred
8,311,500391,497
323,731
16.43077
0.64
8,695,598530,652
61,981
19.711.20
0.149,026,728 17.85 9,288,231 21.06
PROFIT AFTER TAXATION
17,022,346 38.59
19,033,773 37.63 17,022,346 38.59
Unappropriated profit broughtforward
19,372,523 43.92Transfer from surplus on revaluation
32,074,677
39,007
63.42
0.07
19,372,523
41,060
43.92
0.09
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of fixed assets on account ofincremental depreciation
Profit available for
appropriation
51,147,457 101.14 36,435,929 82.61
Basic earning per share 23.34 20.88
RATIO ANALYSIS
Financial analysis is the process of identifying the financial strengths and
weakness of the firm by properly establishing relationship between the items of
balance sheet and profit and loss statement, in order to make rational decision in
keeping with the objective of the organization, for that purpose the management
use analytical tools. To evaluate the financial condition and performance of the
business entity.
The financial ratio is a number that expresses the value of one financial variable
relative to another. Put more simply, a financial ratio is the result you get when
you divide one financial number by another. Calculating an individual ratio is
simple, but each ratio must be analyzed carefully to effectively measure a firms
performance.
Itis important way to state meaningful relationship between two components of a
financial statement. Ratios are guides or shortcuts that are useful in evaluating acompanys financial position and operations and making comparisons with results
in previous years or with other companies. The primary purpose of ratios is to
point out areas needing further investigation.
Therefore in my report I include some of the ratio to show the financial position of
the NBP.
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Margin Of Profit = Net profit x 100Markup/Return/Interest Earned
2008 2009
19,033,773000
______________ x 100
50,569,481,000
= 37.93%
17,022,346000
_______________ x 100
44,100,934000
=38.59%
Interpretation :
The margin profit ratio show the profitability of bank is not satisfactory.
Return On Total Assets (ROA) = Net Profit After Tax x 100
Total Assets
2008 2009
19,033,773,000
________________- x 100
762,193,593000
= 2.49%
17,022,346,000
_______________ x 100
635,132,711,000
= 2.68%
Interpretation:
The return on total assets is also not satisfactory as compare to the 2009
RETURN ON DEPOSITS = Net Profit x 100
Total Deposits
2008 2009
19,033,773,000
________________ x 100
591,907,435,000
= 3.21%
17,022,346,000
_______________ x 100
501,872,243,000
= 3.39%
Interpretation This ratio is show that the net profit as compare to previous year is
increased but the result is not as favorable as compare to 2008.
Return On Equity (ROE) = _____Net Profit_______ x 100
Shareholders Equity
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2008 2009
19,033,773,000
________________x 100
69,270,631,000
= 27.47%
17,022,346,000
______________x 100
53,044,649,000
= 32.09%
Interpretation:
The ROE (return on equity) is also not show the satisfactory result because the net profit
is increased but on the other hand the holder equity is also increase and that is way the
result cannot show favorable sign.
Advances To Total Deposits = __Advances____ x 100
Total Deposit
2008 2009
340,677,100,000
________________ x 100
591,907,435,000
=57.55%
316,110,406,000
______________x 100
501,872,243,000
= 62.98%
Interpretation:
The advance to total deposit is increase but by small amounts that are way the result is
not favorable show by ratio result.
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Advances To Total Assets Ratio = Advances____ x 100
Total Assets
2008 2009
340,677,100,000
________________ x 100
762,193,593
=44.69%
316,110,406,000
______________x 100
635,132,711
= 49.77%
Interpretation:
The advances is increased but by less amount as compare to the increased in total assets
therefore the ratio result is not good.
Debt To Equity Ratio = Total Debt __________ x 100
Shareholders Equity
2008 2009
645,855,939,000
________________ x 100
69,270,631,000
=932.36%
553,178,593,000
______________x 100
53,044,649,000
=1042.85%
Interpretation
The total debt is increased and on the other side the share holder equity is also increased
also that is the ratio is decrease show favorable trend for share holders.
Long Term Debt To Fixed Assets Ratio = Long Term Debt x 100
Fixed Assets
2008 2009
10,886,063,000
________________ x 100
25,922,979,000
=41.99%
11,704,079,000
________________ x 100
9,681,974,000
= 120.88%
Interpretation
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The long term debt is decreasing from 2008 and fixed assets are increased more than
debts that are good symbol.
Debt Ratio: = Total Liabilities x 100
Total Assets
2008 2009
645,855,939,000
__________________x 100
762,193,593,000
=84.73%
553,178,593,000
______________ x 100
635,132,711,000
= 87.09%
Interpretation
The debt ratio is show that the liabilities are increased at the slow rate than total assets
and that is favorable for NBP.
STOCK HOLDER EQUITY TO TOTAL LIABILITIES: =
STOCK HOLDERS EQYITY X 100
TOTAL LIABILITIES
2008 2009
69,270,631,000
_________________ x 100
645,855,939,000
= 10.72%
53,044,649,000
_______________ x 100
553,178,593,000
= 9.58%
Interpretation The stock holder equity is show favorable trend from 2008.
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INVESTMENT TO TOTAL ASSETS = INVESTMENT X 100
TOTAL ASSETS
2008 2009
210,787,868,000
_________________ x 100
762,193,593,000
= 27.65%
139,946,995,000
_______________ x 100
635,132,711,000
= 22.03%
Interpretation The investment ratio also increase that show the growth of NBP.
DEPOSITS TO TOTAL ASSETS RATIO = DEPOSITS X 100
TOTAL ASSETS
2008 2009
591,907,435,000
_________________ x 100
762,193,593,000
=77.65%
501,872,243,000
_______________ x 100
635,132,711,000
= 79.01%
Interpretation:
The deposit ratio as compare to total assets is decreasing that show that the total assets
figure is increased more than the previous year.
PROPRIETARY RATIO = STOCK HOLDERS EQYITY X 100
TOTAL ASSETS
2008 2009
69,270,631,000
_______________ x 100
762,193,593,000
= 9.08%
53,044,649,000
_______________ x 100
635,132,711,000
= 8.35%
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Interpretation
The proprietary ratio is increasing from 2008 to 2009 that is good news for shareholders.
That show the contribution of shareholders is increased.
EARNING PER SHARE: = ______NET PROFIT_____NUMBER OF SHARES
2008 2009
19,033,773,000
________________
815,432
= 23.34
17,022,346,000
_________________
709,071
= 24.00
Interpretation The earning per share is decreasing from 2008 to 2009 that showunfavorable news for share holders.
AVERAGE PROFIT PER BRANCH =
NET PROFIT
____________________________
AVERAGE NUMBER OF BRANCHES
2008 2009
19,033,773,000
_______________
1243
= 15,312.76
17,022,346,000
__________________
1250
= 13,617.87
InterpretationThe average profit of NBP is increasing that show the efficiency of NBP. The number of
branches is decrease and net profit is increased.
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CHAPTER 6
FINDING CONCLUSION & RECOMMENDATIONS
FINDING From the above discussion I come to the conclusion that the NBP is prove
to a Nations Bank because it provides the large number of services to
their customers. On the basis of financial analysis I point out that the trend
is positive, which indicates that profitability; solvency and liquidity
position of bank is sound. It means that the organization (NBP) is working
progressively and the management is performing its role in a very good
manner.
The global economic environment has changed, creating challenges and
opportunities for the worlds policy makers. The privatization drive has
emerged as a strong tool of transformation, which is being recognized as an
essential ingredient for the economic well-Being of the countries
themselves and for the rest of the world. Now there is a greater awareness
that in an interdependent world all countries gain individually if these
countries become positive contributor to world economic growth as whole.
Banks are playing very important role in the economic growth of the
countries. NBP no doubts a positive contributor in this respect but I think
there are certain points by adopting which can serve more effectively and
efficiently. These points are as under:
This is a computer era. With the use of computer we can increase our
efficiency. NBP should computerize all its branches. By the use of
computer properly these branches can increase there working efficiency.
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CONCLUSION
NBP as public service oriented institution has to create business
opportunities for themselves. Now a day there is a competition between the
banks.
Central Asian Republics (CARs) have great opportunities of new business
so N.B.P should open new branches in these Republic.
Model Banks like City Bank, Muslim Commercial Bank (MCB) is using
media very effectively to increase the business of banks. So NBP should
use electronic media for its business developments.
The interference of union in banking business should be minimized as it
decreases the working efficiency of the employee as well as the bank.
The working of the Peshawar Cantt. Branch Peshawar is satisfactory but
still these working efficiencies are far from the standard of modern banking
system.
The bank should finance its loans in those projects that are meeting the
required standard and should avoid the political pressure.
The bank should bring forward the new talent as fresh knowledge and
education is considered very important to increase the efficiency and
production.
There is needed to make the outlook situations of branches in those
manners that can compete the other modern banks in the banking market.
Keeping in view the hard work by the staff members at all levels of
management, staff should be given bonus and increment every year.
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Credit Cards are issued by the different banks like MCB and City Bank etc.
but NBP dont issued this type of finance scheme, there is a place for this
type of scheme in this bank.
RECOMMENDATIONS
Separate desk or counter should be established in every branch to provide
the information as required by the clients.
The environment of the offices should be comfortable so that the client and
staff must feel comfort during business in bank.
Unsecured loan are not to be provided in case of banks directions, their
families, companies or firms.
There are some clients having sound and successful plan but without
financially sound and providing securities bank should forms such policies
that may solve this problem.
I observed that many branches of NBP are over crowded. Less people can
work which extra people perform. Number of employees should decrease or
new branches should opens for the adjustment of these extra employees.
There are some employees untrained which decreases the efficiency of the
bank branch. All the employees should well train.
Most of the bank employees are sticking to one seat only, with the result
that they become master of one particular job and loose their grip on other
banking operation. In my opinion each employee should have regular job
change.
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Refreshes courses for staff are most important in any international
organization. All the employees should have their courses according to their
requirement.
Every year some of the employees should be sent for training to other
countries and employees from other countries should be brought here.
In commercial institutions like banks reward and punishment system should
be introduced. Means achieve, smart, educated, skilled, self-spoken and
well-dressed staff should be rewarded and appreciated and lazy, lethargic
staff should be warned and punished.
People have to wait for re-cashing their cheques and for paying their utility
bills, which are not good for reputation of bank, it should be improved.
Promotion should be given to competent persons on merit basis.
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