Vous êtes sur la page 1sur 48

INTERNSHIP REPORT ON

National Bank of Pakistan


Internship Report submitted to the Faculty of Management &
Administrative Sciences in Partial Fulfillment of the Requirements for
the Degree of Master of Business Administration.

M.B.A (3.5) years

UNIVERSITY OF GUJRAT
Date of Submission

Name of Program Coordinator


Signature of Program Coordinator_________________

ACKNOWLEDGEMENT

Every praise is due to Allah alone the merciful and teachings of His Prophet (Peace and
blessings be upon him) who, for ever, a torch of guidance and knowledge of kindness as whole.

I would like to thank,

Almighty Allah whose blessings are always with me. To my teachers at all my stages of study
who always guided me in right direction. To all my friends from whom I learned much. To the
staff of the National Bank of Pakistan civil line branch, who fully cooperated with me in the
completion of my Internship.

Table of Contents

1. Executive Summary..................................................................................................................... 5
Part-I..............................................................................................................................................
6
2.1 Introduction: ......................................................................................................................... 6
2.1.1 Scope: ................. ...............................................................................................................
6
2.1.2 Aim: ...................................................................................................................................
6
2.1.3 Objective............................................................................................................................ 7
2.2 Overview of the organization................................................................................................. 7
2.2.1 Brief history...................................................................................................................... 7
2.2.2 Nature of the organization............................................................................................

10

2.2.3 Business volume and reward.......................................................................................... 11


2.2.4 Product/service lines.....................................................................................................
15
2.2.5 PESTL analysis: ............................................................................................................ 20
Political: ........................................................................................................................... 20
3

Economical................................................................................................................2
0
Social...20
Technological: ................................................................................................................... 20
Legal: .............................................................................................................................. ...21
2.2.6 Contribution of organization toward economic development ......................................... 21
2.3 Organizational structure .................................................................................................... 21
2.3.2 Number of Employees ...................................................................................................... 24
2.3.3 Main offices .......................................................................................................................
24
2.3.4 Introduction of all departments: ....................................................................................... 25
2.3.5 Comments on the organizational structure: ..................................................................... 27
Part 2 ........................................................................................................................................... 29
2.4 Internee work........................................................................................................................ 29
2.4.1 Brief Introduction of internees office/branch: ...................................................... 29
2.4.2 Details of employees: ........................................................................................................
29
2.4.3 Details of Supervisors: ..................................................................................................... 30

2.4.4 Weekly timetable ........................

......................................................................... 30

2.4.5 Detailed description of the departments


2.4.5 Summary of learning.......................................

.............................................................. 35
..................................................... 44

Skills and qualifications gained from the internship ......................................................

45

Responsibilities during internship ...................................................................................

45

Influence of internship on Future Career: ......................................................................

46

Correlation of internship activities with classroom knowledge: .............................................. 46


3. Conclusion of internship report ............................................................................................. 47
3.1 Summary of key conclusion: ............................................................................................... 47
3.2 General observation about institution: ............................................................................... 48
3.3 SWOT Analysis: .................................................................................................................. 48
4. Recommendation.................................................................................................................... 51
5. References ............................................................................................................................. 53
6. Appendix ...................................................................................................................................55

1. Executive Summary

This report is based on internship in National Bank of Pakistan. It is a famous and apparent bank of
Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. This is the
report based on my internship period and all the time which in have spent in the National Bank of
Pakistan and learn a lot about the banking sector activities and it will help a lot for me in future times
and will be help in practical life.in so many ways as it has been described in the report contents and all
this based on personnel learning.
This report highlights the operations and functions of National Bank of Pakistan. NBP act as financial
agent to its customers in return it gets reward for its services in the shape of profit. Being a Government
owned institution it plays an important role in development of society as well as in development and
growth of the economy. According to international standards of banking system it is one of the best bank
in South Asian regions well as the bank of the year 2008. This report explains how different functions of
NBP work and what are their services.
This report contains SWOT analysis, PEST analysis, and overview of National Bank of Pakistan. There
are also stated the activities which I performed during my internship in the branch. In this report also

discuss the industry analysis of banking system in Pakistan. The problems in this branch are also
discussed. Recommendations are also provided for the problems which founded.

Part-I
2.1 Introduction:
Every student of MBA has to undergo an internship program of 6 weeks in any organization to
get exposure of real time business environment. I am student of MBA (finance) so I did my
internship at national bank of Pakistan Randhir More Branch Sambrial. I did internship to gain
the confidence and knowledge about banking sector in Pakistan. In this chapter I will discuss the
background of study that includes the inspirational factor for choosing an organization. After
that purpose of internship program, scope and objectives will also be discussed. Research
methodology will also be discussed in this chapter it includes the methods for collecting the
data. At the end a brief summary of chapter will be provided.

2.1.1 Scope:
There is a great scope ahead what we have done as an internee. Many organizations prefer
internees as an real source for supply of labor when they start their recruitment practices. So
that is why organizations prefer them whenever they look for new fresh blood. During my
7

internship I try to learn as much as I can so my internship objective achieved, and cover all
aspects of banking sector to reach my targeted scope.

2.1.2 Aim
During my internship in National Bank of Pakistan the main aim of my study research was on
general banking procedures in branch of NBP. These operations include remittances, deposits,
cash department and advances. Similarly different aspects of overall of National Bank of
Pakistan are also covered in this report.
2.1.3 Objective:
The objective of internship is to apply the theoretical knowledge in practical situation to know
the environment of system. I want to achieve following objectives during my internship:

To get the confidence and experience in banking sector.


To fulfill the requirement of MBA.
To know about the working environment of banking sector.
To familiarize about different departments in the organization and their functioning.
To enhance the communication skills

2.2 Overview of the organization


Banks always play an important role in the economic life of the nation. The growth of the
Economy is correlated with the soundness of its banking system. Commercial Banks does not
involve in creating new wealth but they borrow exchange and consume wealth that circulates in
economy and brings a positive change in economic condition of a country.In considering above,
we conclude banks are very effective partners in the process of economic development. In
modern world banks are very useful for theutilization of the resources of the country.

2.2.1 Brief history


The history of NBP is a part of Pakistan Struggle for independence. NBP was established on
November 9, 1949 under the NBP ordinance .The British and Indian Government devaluated
their currency in September 1949 but Pakistan did not do so. As a result it leads to crisis
between two countries. Indian Government refused to lift the Pakistan Jute. NBP was established
under the ordinance of GOP to export the jute. NBP sets the higher standards for achievements.
NBP started its operation on November 20, 1949 at six jute centers. In December 1949 NBPs
offices were opened in Karachi and Lahore. NBP extended the credit facility in order to restore
the stability of Pakistani market.
The nature of responsibilities of NBP is unique. NBP acts as an agent of SBP. It deals with
Government receipts and payments on their behalf. NBP also played a vital role in the economic
development of country. NBP diversified its business volume day by day and maintained its
positions in the banking sector. Headquarter of NBP is situated in Karachi. NBP operates 1255
branches in Pakistan and 23 overseas branches.
NBP provided its services as a trustee to National Investment Trust (NIT) under a trust deed. It
provided the safe custody of securities on behalf of NIT.NBP is a customer focused institution.
NBP has provided a wide range of products and services to expand its business volume. Schemes
are designed for middle level income of people.
NBP has taken initiatives to facilitate the overseas Pakistanis. NBP signed an agreement with
Western Union in 2002. Recently NBP has started a project Electronic Home Remittances.
Various measures have been taken to improve the structure, policies and procedures at NBP.
The countrywide oversees operations of NBP are as follow:

National bank of Pakistan was established on November 19, 1949 under the NBP

ordinance. It was Government owned bank.


In Saudi Arabia a branch was established in Jeddah in 1950.
In 1955 NBP had its branches in Calcutta and London.
In Iraq a branch was established in Baghdad in 1957.
In 1950 the bank had one subsidiary The Bank of Bahawalpur
NBP established a branch in Dar-es-salaam, Tanganyika in 1962.
The Government of Iraq nationalized the NBP, s Baghdad branch in 1964.
The Indian Government seized the Calcutta branch in 1965 and the outbreak of

hostilities between India and Pakistan.


The Tanzanian Government nationalized the NBP, s Dar-es-Salaam branch in 1967.
NBP acquired the bank of chinas two branches in 1971. One is at Karachi and other at
Chittagong.
The Government of Pakistan nationalized NBP in 1974 and NBP acquired the bank of

Bahawalpur.
NBP amalgamated Mehran bank in 1994.
The NBP, s branch Ashgabat, Turkmenistan commenced its operations in 1997.
The NBP opened a representative office in Almaty, Kazakhstan in 2000.
The NBP and Bank of England agree to allow only 2% Pakistani to operate in UK in
2001; NBP and United bank merged their operations to form Pakistan International

Bank. NBP owned 45% and United Bank owned 55%


In 2003 NBP received permission to open a branch in Afghanistan
Vision statement:
To be recognized as a leader 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 a Nations bank by:

Institutionalizing a merit and performance culture.


Creating a distinctive brand identity by providing the highest standards of service.
Adopting the best international management practices.
Maximizing stakeholders values
10

Discharging our responsibility is a good corporate citizen of Pakistan and in countries


where we operate.
2.2.2 Nature of the organization
Banks play vital role in economy. Banks borrow and exchange wealth in order to bring a positive
change in economy. Banks are very useful for the formation of capital. If the banking system is
effective and efficient it will bring a rapid growth and development in the other sectors of
economy. The growth of economy is correlated with the soundness of its banking system.
NBP is playing a vital role in the development of Pakistan. Agriculture sector is main production
sector of Pakistan and NBP is making a pioneer role in development of this sector. Agriculture
sector is the major part of our exports like cotton, sugar, rice etc. it helps us to earn a huge
amount of foreign exchange through exports. NBP deals with the government revenues, pensions
and collection and payment of salaries. The nature of responsibilities of NBP is unique. It deals
with three activities:

Lending
Borrowing
Investing
NBP has also played an important role in the financing the country s growing trade, which has
expanded through the year as diversification. NBP also handles the treasury transactions for the
Government of Pakistan. NBP was the first bank to introduce the scheme of credit for small
borrowers. For the rural and agriculture development NBP advances the liberal credit. Short
term loans are advanced to the farmers for promotion of their agriculture. These loans are
advances without any interest. These loans are may be in shape of fertilizers and seeds. NBP
attracts large amount of deposits and also provide large amount of loans to different sectors.
2.2.3 Business volume and rewards:

11

NBP has achieved its goals through the effective implementation of policies and strategies. There
are number f successes achieved by NBP.

Domestic Technology and Operations Bank of the Year 2013 - Pakistan", "Asian Banking
& Finance Magazine, Owned by Charlton Media Group, Singapore
"Listed in top 1000 banks of the world for the year 2013" by the world renowned "The
Banker magazine owned by the Financial Times Group, London.
Domestic Retail Bank of the Year 2013 - Pakistan, "Asian Banking & Finance
Magazine", Owned by Charlton Media Group, Singapore
"Transaction of the Year Award - 2012", awarded by CFA Association of Pakistan for the
sell side advisory for the sale of Agritech Limited by Azgard Nine Limited (ANL)
The National Bank of Pakistan (NBP) received "Middle East Renewable Deal of the Year
2012"award from Project Finance Magazine, a publication of Euro money PLC, for its
role in Pakistan's first ever 100 percent Islamic Finance Renewable Power Projects
Foundation Wind Energy 1 and 2.
3rd Global Human Resource Excellence Award - 2012" administered byGlobal Media
Links in collaboration with Better Pakistan.
"Listed in top 1000 banks of the world for the year 2012" by the world renowned "The
Banker.
Global finance magazine awarded NBP as Best Emerging Markets Bank 2011.
The Banker Magazine of London awarded NBP as The Best Bank of the year for
the year 2010.
In 2010 the federation of Pakistan chambers of commerce and industry awarded NBP
The President of Pakistan Trophy.
In 2010 the Lahore chambers of commerce and industry awarded NBP Prime Minister
of Pakistan Trophy.
The banker magazine owned by financial times group London awarded NBP Bank of
The Year for the year 2008.
Global Finance the world leading journal awarded NBP Worlds Best Foreign
Exchange Bank 2008.
12

In July 2007 by JCR-VIS , stable rating AAA/A-1+


In July 2007 The Banker Magazine awarded NBP Best Return on Capital for 2006
among all the banks in Asia.
Global finance named NBP as Best Emerging Market Bank from Pakistan for the
year 2006.
Global Finance the world ,s leading financial journal awarded NBP as best foreign

exchange bank Pakistan for the year 2006.


Moodys investor service upgraded the financial strength rating(FSR) rom E+ to D- in
November 2005 due to consistent increase in NBP,s profitability , asset capitalization and

economic capitalization in recent years.


Global Finance the world ,s leading financial journal awarded NBP as 2best foreign
exchange bank Pakistan for the year 2005.
The Banker Magazine of London awarded NBP as The Best Bank -Pakistan for the
year 2005.
During 2004 on the basis of overall financial performance NBP has been listed
Amongst top 100 banks in the world and No 1 bank in Pakistan by the banker

magazine.
The banker magazine recognized NBP as the 10 th best bank in terms of profit on

capital in the world in July 2005.


The banker magazine owned by a financial times group, London awarded NBP the
best bank for the year 2005.
The NBP was awarded kissan times award for the year 2005 by prime minister of
Pakistan Mr. Shoukat Aziz for its services in the agriculture sector.
Global finance magazine awarded NBP as Best Emerging Markets Bank from
Pakistan for the year 2005.
Euro money a leading journal in UK has published moodys investor service ranking
in which NBP is only Pakistani bank which has been ranked among the top 100 banks of
Asia for its performance in the fiscal year 2003, in its issue of March 2005.

13

The banker magazine owned by a financial times group, London awarded NBP the
bank of the year 2004.
An alliance against gender discrimination at workplace named as WEBCOP- AASHA
presented a recognition award to NBP for having a gender sensitive management on
December 18, 2004.
The NBP,s standalone long term rating was upgraded by JCR-VIS credit rating agency
to AA(double A) from AA- (double A minus) with stable outlook while short term
rating was marinated at A-1+(A one plus) in may 2004. Now this is the best rating for
any commercial bank in Pakistan.
Global Finance the world leading journal awarded NBP Worlds Best Foreign
Exchange bank in Pakistan in March 2004.
In July 2003 The banker magazine recognized NBP as the bank with the highest return
on capital in Asia and No.8 in the world
In May 2003 Global finance magazine awarded NBP as Best Banks in the Emerging
markets.
2.2.4 Product/service lines
NBP Premium Aamdani Scheme:
This scheme was introduced by NBP for the investors and general public.

Earn up to 12.25% p.a plus a minimum deposit of Rs.20000/- for 5 years


Free Demand Draft and cheque book
NBP cash card(ATM+Debit)
A running finance facility up to 90%
Profits are paid every month

Year Profit Rates


1st 11.25%
2nd 11.50%
3rd 11.75%

14

4th 12.00%
5th 12.25%
NBP Premier Saver:
It can also be called PLS Saving Account.

Earn up to 8.50 percent p.a + minimum balance Rs.20001/- and maximum of 1 million.
NBP convenience for online banking
Offers 2 debit withdrawals in a month
Unlimited transactions
Profit is calculated on monthly basis
Profit is paid twice in a year

NBP Siaban (Home Finance):

Purchase of home and land


Construction of home and land
Renovation of home
BTF , Balance Transfer Facility

NBP Advance Salary:

Personal loan
Easy installments of 5 years
Collateral charges, insurance charges and minimum income is not required
Quick disbursement
Allows the permanent Government and semi government employees to receive their
salaries through NBP

NBP Cash Card:

ATM plus Debit Card


It allows cash withdrawals of Rs.20000/- per day
It provides a mini statement (only at NBP ATM)
It provides the pin change facility to customers (only at NBP ATM)

NBP Investor Advantage:

Offer financing facility to the stock investors


Provides a comfortable trading environment
Only customer equity is required and it is easily and freely available to all the investment
15

Equity is acceptable in cash form and shares


NBP Cash and Gold:

Ready cash against Gold


It provides the facility of Rs.35000/- against 10 gm of Gold Ornaments
There is no maximum limit of cash
Customers are required to repay loans after one year

NBP Kisan Taqat:


NBP Kisan Dost:

Offers competitive markup rates


It makes the processing more easy and quick
Provides the guidelines to the farmers at their doorstep
Offers wide range of financing schemes
It provides to the landless formers on their personal guarantee a finance facility of Rs.
100000/-

NBP Pak Remit:

It is an internet based home remittance facility


It allows the U.S users to log on to the site pakremit.com and transfer funds to Pakistan
This services is available 24 hours a day
NBP Protection Shield:

Personal accident insurance


Medical and documentation is not required
Provides the facility of premium auto debit
The coverage includes death due to
Natural calamities
Accidents

2.2.5 PESTL analysis:


Pest analysis includes political, economic, social and cultural & technological analysis. In my
opinion these are some pest analysis of national bank of Pakistan.
Political:
16

Employment practices, Unions, Associations are very challenging.


Incidents of high taxation in banking industry.
Impact of subsidized credit affecting &NCBs.
Political Interference and harassment leave no independence in work.
Privatization and deregulation policy affects the performance.

Economical:

Staff Cost is very heavy


Bad Debts are big problem.
Constraints in mobilization of public saving because of inflation
Heavy operating cost occurs in daily working.

Social & Cultural:

Cultural constraints to save the money.


Much stronger Defaulters lobby.
Declining education & work ethics.
Inadequate accountability that is very dangerous.
Inadequate human resources
Adequate empowerment

Technological:

Very less computer knowledge


Inadequate communication infrastructure.
Inadequate computer and IT facilities.
Traditional methods are used in branch.

Legal:

No application of antidiscrimination law.


No proper implementation of laws relating employment.
Wastage of time and cost in legal cases faced by bank.
Proper allocation of legal advisors in banks.

2.2.6 Contribution of organization toward economic development


National Bank of Pakistan Established in 1949 has played a unique role both as a commercial
bank and as a trustee of public finances. Operating through a network of domestic and overseas
branches it has been at the forefront of national economic development. Its contribution in

17

development of small and medium size entrepreneurs is very encouraging. It is credited with
introducing such innovative schemes as People's Credit Scheme (1960), supervised agricultural
credit program (1972), and educational loans on empathetic grounds. Through all these schemes
there is a great flow in economy in our country because all the above sectors are very necessary
in development of our country and growing vastly in order to compete rest of the developing
countries.
2.3 Organizational structure
President

Senior Executive Vice President


Grade 22

Executive Vice President


Grade 21

Vice President
Grade 20

Assistant Vice President


Grade 19

Grade I Officers
Grade 18

18

Grade II Officer
Grade 17

Grade III Officer


Grade 16
Board of Directors:
NBP s Boards of Director consists of following members:
Syed Ali Raza
(Chairman and President)
Mr. Qamar Hussain Nazrat Bashir
(President) (Director)
Mrs. Haniya Shahid Naseem Mr. Tariq Karmani
(Director) (Director)
2.3.2 Number of Employees

Years
2006
2007
2008
2009
2012

Employees
13824
14019
14079
15441
16248

2.3.3 Main offices


National bank of Pakistan Randhir More Branch (1319) Sambrial is a small branch. This branch
is working under the regional office located in Sialkot. There is no branch working under this

19

branch. In that area there is only one branch of National bank of Pakistan in which I did my
internship.
Head office:
NBP, Head Office
NBP building
l.l. Chandigarh road
Karachi.
Divisional office:
Divisional office of NBP is in Gujranwala.
Regional office:
Regional head quarter is in Sialkot. The regional head quarter regulates all the branches of NBP
in the region.
Branch network:
The network of National Bank of Pakistan is divided into following categories: ATM Network:
100 ATM locations and 104 ATM machines
Domestic Network: 1262 Branches
Islamic Network: 8 branches
Online network: 858 branches
Overseas network: 23 branches and 10 regional offices
SWIFT Network: 13 branches
Customer facilitation centers: 6 customer facilitation centers
Subsidiaries: 1 global subsidiary and 6 subsidiaries in Pakistan
2.3.4 Introduction of all departments:

20

Every organization either national or multinational having different departments to perform


their basic services in efficient way. As we Know NBP is very large services type organization, it
accommodates different departments. Following departments are basic four departments that
involves in delivering its services.
Finance Department
The finance department is the most important department in any financial institution. All
financial strategies are developed by this department. The main purpose of this department is to
decide from where to collect the funds and most important is that to take decision, where to
invest these funds for the generation of high revenue.
NBP also has a large finance department thats make financial decision for the growth of bank.
It takes the step to invest in different multinational companies. It also makes regulations how to
lend and whom to lend their funds and on what interest rate be imposed on such lending funds.
Finance department is also responsible for showing good financial statements at the end of year.
Marketing Department
This is the responsibility of marketing department to show the positive image of any financial or
non-financial institution. This department makes the strategies for the promotion of new
products and services. For the promotion purpose print media as well as electronic media is
used, like newspaper, different types of magazines, pamphlets, brushers and now most important
source for marketing is internet.
NBP is Govt. owned organization. It has a good name in market. It has created its goodwill in
last sixty years, so it does not pay series attention in this side for last some decades. Now
realizing the competition in market NBP give more attention toward this side. They use all

21

conventional methods of marketing, as well as they also use telephone calls to introduce the new
products with their customers.
Human Resource Management Department
HR department is the most important department in all big organizations especially in
multinational companies. NBP has a well-organized HR department. There is a well-designed
HR committee lead by Dr. Mirza Abrar Baig is workingas SEVP & Group Chief, Human
Resources Management & Administration Group. When we talk about the region level then there
are HR coordinators in regional offices and head offices. They worked as HR manager. The
responsibility of this department is to hire the new employees, train these new as well as existing
employees and evaluate the performance of employees.
I.T department:
I.T infrastructure of an organization tells us how well organization growing in changing world.
In these days internet facility is very necessary for linking with others. National Bank of
Pakistan also performing very well in last five years for the development of I.T infrastructure. A
complete department established for handling and performing of such activities. Computer
centers working at divisional level accommodate its small branches. These computer centers
performing these activities;

Giving instructions about working of computer and software known as B.B.O (Branch

Back Office)
Receiving data of daily activities.
They try their best to update I.T infrastructure every moment.

2.3.5 Comments on the organizational structure:


An organizational structure defines how job tasks are formally divided, grouped and
coordinated. The basic objective of organizational structure is to create an environment for

22

human work performance. It is a management tool. There are six key elements that managers
need to address when they design their organization structure. These six elements are used in
analyzing the
organizational structure of NBP. After analyzing NBP structure I conclude my findings as:
Work specialization:
To what degree are activities subdivided into separate jobs is known as work specialization.
During my internship when I analyze my branch at this point I conclude that NBP does not
strongly stressed on work specialization.
Departmentalization:
This means the basis by which jobs in an organization are grouped together. If I talk about this
concept relative to NBP I conclude that there is great departmentalization View in operations of
bank.
Chain of Command:
The chain of command is a line of authority, which means to whom do individual and groups
report. By analyzing the organizational structure of NBP it can be found that each and every
person knows to whom he should report.
Centralization and decentralization:
Centralization and decentralization decision making means where decision making authority
lie? By analyzing the organizational structure of NBP it can be found that the structure at NBP is
significant. All the decisions and policies are made at the top management level and the
subordinates have to obey and act upon these decisions. This trend shows a centralized decision
making pattern of inflexibility in structure of NBP.
Span of control:

23

This includes how many individuals can a manager efficiently and effectively direct. By
observing the management style of NBP I conclude that there is wider span of control in this
organization. NBP is a Govt. owned bank and act as an agent of SBP all over the country, so it
needs too much employees to cover all work. Wider span of control help him to control all
operations in possible minimum cost.
Formalization:
The degrees to which jobs within an organization are standardized are called formalization. This
also includes that how much rules and regulations within organization to direct employees and
managers. As we already knows that NBP enjoys sixty years experience, so in its long time
operations it developed well formal rules and regulations to operate his business in efficient
way.

Part 2
2.4 Internee work

24

Internee work is the main assessment area of report in which I have tried to explain the activities
that is performed by me during the internship period.
2.4.1 Brief Introduction of internees office/branch:
I have done my 6 week internship in the national bank of Pakistan Randhir More branch.
Name of the Branch:

NBP Randir More Branch

Branch Code:

1319

Region/Circular:

Sialkot

Regional Code:

16

Name of Manager:

Mr. Afzaal Ahmad

Number of employees: 8
Phone Number:

052-6522205

Email Address:

manager1319@nbp.com.pk

Status:

Online

Starting date of internship August 19,2013


Ending date of internship September 25,2013
2.4.2 Details of employees:
The present staff of the NBP Branch according to their qualification and experience is illustrated
in the form of a table as follows.
Name Designation Qualification Experience
Mr Afzaal Ahmad Manager OG- 1 M.ba 20 years
Mr. Hammad Hassan
Advances Manger B.sc agriculture 5 years

25

Mr. Ijaz Ahmad Head Cashier B.com 30 years


Muhammad Azam Non Armed Guard B.com 8 years
Muhammad Waris Guard Matric 10 years
Muhammad Ilyas Guard Matric 15 years
Riaz Ahmad Guard Matric 10 years
2.4.3 Details of Supervisors:
During my internship period I have performed several activities in different departments. My
Training supervisors very cooperative with me in my learning process and also try my best serve
them in right way. There is schedule of my training supervisors are below:
2.4.4 Weekly timetable
I have performed the duties in the national bank of Pakistan Randhir More Branch that
discussed in the following table.
General banking department
Mr. Hammad Haasan Advances Manager
Remittance department
Mr. Afzaal Ahmad Manager OG-I
Cash department
Mr. Ijaz Ahmad Head Cashier
Advances department
Mr. Hammad Hassan
Week 1
Supervisor: Mr. Hammad Hassan
Activities

26

19-08-13
On the very first day at the branch I have spent all my day in knowing all about general banking
and all their activities.
20-08-13
I have work on the utility scroll and learn about all the vouchers used in that branch.
21-08-13
I have spent all my day time in filling up cash receipt vouchers and I also fill more than 10 utility
scroll.
22-08-13
I work in branch and filled 16 scrolls of different category all of the day. And at the end of the
day I learnt to make summary of the all Collection and Payments. And learnt to fill the check
and transfer the cash to cash office.
23-08-13
I have independently and in compliance with all scroll of another category. At the end of the day
prepare the data (The registration Payments). And I have completed review and presentation of
the Cash Office.
All employees of the branch were more cooperative and I have learned a great deal with The
collections and pension.
Week 2
Supervisor: Mr. Ijaz Ahmad
Activities
26-08-13

27

I have completed the payment order cheques and also the vouchers above and also issue the
cheque book. There are different levels of account holder and not the holder of an account.
27-08-13
On the next day I learnt about how an account opened into the bank while watching my
supervisors.
28-08-13
I have filled cheques for the customers who have direct interaction with the branch. I have also
filled up the utility scrolls for the PTCL and WAPDA bills.
29-08-13
Open an account for a customer that account was the PLS account and I have also done some
work on utility scrolls.
30-08-13
That was my last day in this section. I have nine hours at the Bank. All day long I have all the
works of the section for vouchers, entering of vouchers, and the entry of traveller's cheques,
control of balance, reporting and compensation reports.
Week 3
Supervisor: Mr. Hammad Hassan
Activities
02-09-13
In the 3rd week of my internship I have done some work in the sections of loans and very first day
of week I have filled the form of loan.
03-09-13

28

I have filled the form for the loan applicants and I have also reviewed the satisfaction of
customers that are linked with that branch of bank.
04-09-13
I work on ledger of branch and I see there are some borrower who does not paid their loan
amount yet then I filled a notice for them to make there payment.
05-09-13
I have opened account of AGF for the customers and also lean their loan ledger and the
formulas of calculating their interest rate, discussing the loan amount and their market value.
06-09-13
Work on the AGF ledger and learn about the types of loan that the branch is providing like cash
finance, demand finance, running finance and the major is agriculture finance.
Week 4
Date Supervisor: Mr Ijaz Ahmad
Activities
09-09-13
In this week i have spent the time the deposit department of branch. I work there and I see whole
activities relating to that department.4 sub section are attached with it.
1. Cheque approval
2. Cheque posting section
3. Payment section
4. Receipt section
10-09-13

29

I have filled the cash and deposit vouchers. I completed about 30 vouchers. I also have the total
quantity of the last six months of the receipt of the payment and balance. I
have made the summary of each month on page separately.
11-09-13
I have taken into account in cheque posting section in which cheques are posted in EBS
(Electronic Banking). I posted the in cash payment and cash received and I have also examined
whether the balance of the customers.
12-09-13
On that day I have only filled the vouchers and I also reviewed the balances of account holders
and their signatures.
13-09-13
I have spent the time in in doing the same things in the dept. I work on EBS.
Week 5
Supervisor: Mr Afzaal Ahmad
Activities
16-09-13
I have learned and a collection of cheques transfer cheques, so I have this task in the course of
the day. I have 60 cheques for a transfer of appropriations. I have also met well for the
submission of types and cheques. I have also helped (officer in the Department of) on the
issue of new cheque books for the customers
17-09-13
I was with the work of a customer dealing department. As I routine filled vouchers for its
customers from the types and cheques for deposits in their accounts and also collect 70 cheques
for transfers. I also opened 10 to 12 new account that day.
30

18-09-13
On the 3rd day of week I have worked in the remittances department and the officer of that
department tell me how it work.
19-09-13
I have filled voucher for the customers and also filled cheques. At the end of day I made a
summary of all activities that is performed that day.
20-09-13
I have work in the foreign exchange department of the branch that is very important department
in bank. My supervisor told me all the information related to foreign exchange and it work in
bank.
Week 6
Supervisor: Mr. Afzaal Ahmad
Activities
23-09-13
That is my 6th week of internship, my supervisor told me working of that department and I
learned from him by observing him.
24-09-13
Next day I have attend the cash department of the branch and see their activities that are
engaged into managing the cash payment and the cash received.
25-09-13
On 3rd day of weak I clear the cheques that are for cash and I also recorded all the payments and
receipt into the computer.
26-09-13

31

A have make some good positive discussion with all my supervisors about the banking that is
very helpful for me.
27-09-13
That is the last day of my internship and there are as grand party for all the internees and
managers told me about my performance and give me my internship latter with their best wishes.
2.4.5 Detailed description of the departments
NBP Randhir More branch have a number of department to run different services for the service
to large number of customers. During my internship period I tried to learning the tasks that is
the basis of the departments. These departments in which I worked are discussed one by one.

General banking department


Remittances department
Advances/credit department
Cash department

General banking department


The tasks are based on the general department of banks. In addition, it is divided into under the
sub department as follows:
Accounts Department:
In the service of the accounts of the various functions is made using the accounts as opening an
account, issue letter of thanks to the holder's account, the granting of the cheque book , your
posting of the accounting system and finally registration statements be maintained.
Detailed information:
It is the department that is relate to the procedure of account opening. New accounts for the
customers are opened and maintained in the department according to their balances.
Account opening:

32

It is the process in which we open an account for the customers by his/her willingness with the
permission of our senior officers or manager. The demands are different for the opening of the
different accounts. These are the required the demands are different for the opening of the
accounts. These are the required documents for the various types of accounts for the various
types of accounts.

Application
Account opening form
Information about customer form
Specimen signature card
CNIC attested photo copy
Next of kin attested CNIC photo copy
Income source
Residence proof
In case of illustrate person passport size picture required

Partnership Company:

In the case of the company, registration certificate received


The CNIC copies of all partners
Copy of a legal act of the partnership deed
Joint stock company:

A copy of the registration certificate in the case of the company has registered
A copy of the start of the certificate affairs
A copy of the Agreement and Article Association Agreement
For the Opening and operating, account list of members of the Board of Directors

Procedure of opening account:


For the account opening an account opening form is given to customers to fill it. If there are
illustrate persons or persons who dont know how to read and write then the staff of bank fills it
by itself. After filling the form copy of CNIC of account holder and next of kin is required and 4
passport size photos are taken by the bank from the customers and attached it with the
application form. After that signature of customers are taken at required place and in case of
33

illustrate customers thumbs and picture are taken. When all these information is taken then
entered it into computer system and in account opening register. Amount is deposited by the
customer to its account and thanks latter issues to the account holder. Account holder sent it
back to bank and then a cheque book is issued.
Account maintenance
After opening account maintenance is particularly important. The state of account changes with
the time period when a customer does not take into account transaction. These States are as
follows:
Active accounts:
It State after opening an account for a customer.
In active accounts:
It is deactivated after one year time period.
Dormant accounts:
If a customer does not transaction six months after six months, he will consider as dormant
account.
Unclaimed account:
It is the account that is considered as unclaimed account after three year and manager has
responsibility to close the account or leave it in this state.
Collection/clearing department
NBP offers the facilities like the collection and approval of payments to its customers. The
department contract with the cheques from different banks. When the deposits cheque of another
bank deposited by the customers, branch sent these cheques to NIFT for the purpose of
clearance. And also receives the cheques that are drawn in him.

34

Two types of clearing via NIFT:


1. Inter city clearance
2. Outer city clearance
Procedure for clearing of all cheques:
It involves in receiving cheques and other instruments of the submission and the fixing of the
clearing, as well as other required stamps. Entry pass into the book, sum of all amount, attach it
to with the cover of bundle, and after signature of the account holder these documents are send
dend to the clearing house department for clearance. We have also received the cheques by the
other branches and our authorized officers verified it after that these cheques are cleared.
Deposit department
NBP collect the deposits from those who have too much money and they want to save their
money in banks. This bank will collect the deposits from people in different forms.
There are three types of deposits that is used by the customers.

Demand deposit
Time deposit
Profit deposit
Demand deposit
These deposits can with drawn at any time. Not-for-profit for the period for the conservation of
the deposit account in six months and there are normally low rate in comparison to the fixedterm deposits.
Time deposit:
These deposits can be withdrawn for a certain period of time is to say 1 month, 3 months 6
months, 1 to 10 years. The profit is higher than the demand deposits.
Profit deposit:
In profit deposit there are two types of accounts.
35

Current account:
It is the account in which no profit is paid to account holder and also no zakat deduct.
PLS account:
In such types of account, customer enjoys a normal profit on deposits semiannual basis, and
zakat deduction shall apply to this account.
Pension payment Department:
NBP have a pension payment department performs the function of the payments of pensions for
the Govt. pensioners of the region.
The three categories of the basis of pensioners are as follows:
Simple pensioners
In this category are only army retired pensioners, police pensioners, the field of education of the
people and institutions to make any other person and receive their pensions from the NBP.
EOBI pensioners
In this category only these people are involved which are retired from Govt. organization or
factory and from private organization. These pensioners receive their fixed pension from NBP.
DD purchase pensioners:
Pensioners are received their pension through demand deposit.
Remittances departments:
NBP provides the money transfer facility to its customers. Now they can easily transfer their
money from one location to another and that facility is provided by the Remittances department
of bank. They use various instruments such as DD, PO, TT and MT the transfer of money.
PO (Payment order)

36

PO is same as DD. This is a written order of a bank on the same part of the Bank to pay a
certain sum of the person. It means that this is a bank own payment but in practice also issued to
customers. Registration of all delivered and paid PO will still be in a file.
DD (Demand draft)
DD is a negotiable instrument. This is a written order a branch of the other part of the same
bank or any other bank in the payment of a certain amount of a person be specified. It bears the
signatures of two authorized officers and thumb impression not be accepted.
Four parties are involved in DD:

Buyer
Receiver
Issuing branch
Drawee branch

MT (Mail transfer)
In MT there are same banks involved. This is the transfer of funds from one branch of the bank in
another branch within or outside of the city. The procedure is also for DD. MT for a different
bank.
TT (Telegraphic Transfer)
It is true such as MT but there is something else TT allowed the other bank to certain
arrangements. It is non-negotiable and minors are not access to the facility. There are four
parties involved in it.

Applicant
Drawer Branch
Drawee Branch
Receiver

Credit department:
Credit department is the most important department in any bank. Credit department of NBP
provides loan to customers who are eligible for loan. It is the important source of income of
37

bank. Department get the applications from customer who want to get loan and processes it
further. After the analyzing of information then they decide that whether the loan is approve or
not.
Following products are providing by the NBP.

NBP advance salary


NBP cash and gold
NBP apna karobar
NBP agriculture finance
NBP cash finance

Cash department:
Cash department is responsible to hold the detailed information about demand of cash from their
customers as initial balances, cash payments, cash receipt, and ending balances.
Books have been kept by Cashier:
Cash balance book:
It is the book in which that contains the details of cash ending balances at the end of each day.
Cash vault book:
Sorted and unsorted cash detail includes in it and issue able and non-issue able cash in hand
detail in it at the end of day. The cash flow situation in this book is made from strong and the
strong room kept liquidity in strength at the end of the day. It also contains the details of all types
received from cash house.
Cashier receipt and payment book
These books are maintained by the cashier at the counter while payment and receipt in daily
transactions.
Cash summary book

38

Such books told us the receipts and payments opening balance in hand and the closing cash at
the end of day. The total amount of the receipts and payments are entered in Summary book and
the balance for the setting is calculated using the following formula:
Opening balance + (receipts payments) = closing balance
Detailed description of task assigned to me:
During my internship period I completed several tasks and certain very important projects that
are to assign me by my supervisors. A complete description of each task is below.
General banking department
In this department I did the following task that is assigned to me during my internship period.

Letter of thanks issued to new account holder of the branch


I have prepare the documents for CNIC verification of our share holder from NADRA
Open various types of accounts for the different customers
I have completed a file of Requisition slips for a month.
Account opening form file prepared ad evaluate that they are completed.

Remittance department:

In this department I was assigned a task to operate the western union software.
I was said to check how it works like the issuance of amount to customers that were sent
to them from foreign countries.
Advance department:

In this department I efficiently perform my duties as recovery officer to recover expired


loans.
Renewal forms for the loans are completed by me.
Check the ledger of borrowers if there is someone who returns loan his name from the list
I removed.
Cash department:

In this department I help cashier and handled cash amount.


Complete vouchers for the payments and receipt
39

Put data into computer of cash department at the end of day


2.4.5 Summary of learning
During my internship period the chief objective of my study was the learning of general banks
procedure and a full understanding of the work practices with the support of my knowledge.
National bank of Pakistan Randhir More branch is a place that offers an excellent opportunity to
finally achieve my goal. The following four points give the detail of my learning that I have got
from the internship.
Skills and qualifications gained from the internship
I got many experience with the work of the various departments and many operations. General
banking, remittances, cash and advances departments are involved into those operations. After
the joining of the Bank for my internships originally was therefore difficult for me to get the
attention of employees, each has in the course of their own activities and person in the time that
I was. It was very important to get the attention of all management. But very Soon got success in
making the positive relationship with all the management. Initially i worked in the department of
general banking where I got the communication skills representation of my organization and the
values in achieving goals.
Sometimes I have worked with my managers and I learned the things involved how to deal with
customers, how manage employees and how we can create the link outside from branch. During
my 6 week internship I have got a chance to represent my branch as spokesperson to obtain the
useful information from the people and deliver the branch required information their door step. I
have also learned the cooperation with the seniors from my internship and I have obtained the
knowledge of account opening, cheque filings, filling the cash slip etc.
Responsibilities during internship:

40

During my internship time period the main objective of mine is to get know how working of all
financial institution, reputable national and multinational organizations. Our department
performing their responsibilities very well for the students to achieve their objectives. With the
program of internships my information such as development of good relations with other helps
me to achieve my plans for the future. In the course of internships I learned to manage my tasks
and responsibilities of short duration during internships I held my responsibility as a responsible
for recovery recover loans has expired. In my responsibilities one of is holding the cheque book
in custody during the working time of bank and issue it to customers. It is the responsibility on
me to make peon book keep record advanced.
Influence of internship on Future Career:
As a student of the management at this stage I need in the course of my plans for the future and
future scenario designed by jobs and the requirements of the jobs in the market. Internship
period influence on my plans for the future because I had the opportunity to learn to develop my
personality characteristics in accordance with the world of today needs. Internship is an activity
that enhances the student life by knowing the valuable practical knowledge and told how it is
possible to work in todays competitive market where all is on higher level. It motivates me to
work hard in future by give them your best expertise.
Correlation of internship activities with classroom knowledge:
In the classroom the things were known for us, our teachers and also directed us internship
period I come in reality this is in its banking system. Internship helps me out to correlate the
practical experience with class room knowledge. Internship gives me opportunity to raise myself
according to world rapidly changing. First I have read many different in books and I am
confused that how it matter with our actual life. When I did my internship of 6 week then I have

41

chance to implement the book concept and knowledge into actual life. Every person have
different observations, judgments, concept butt I believe that internship that I have done that is
highly correlate with the class room activities and will be very beneficiary in my future success.
3. Conclusion of internship report
3.1 Summary of key conclusion:
The report that I have prepared is all about National Bank Pakistan that is one of the most
important banks of Pakistan banking industry with 1254 branches in Pakistan and nearly 25
branches in other countries, in particular the United States, Azerbaijan, France, Hong Kong, ,
Bangladesh, China, and Hong Kong. NBP maximize his facilities by providing online services
and ATM that work worldwide. NBP was incorporated under the ordinance of 1949. The
objective of the NBP to buy Jute from the producers in the East Pakistan and also to perform
commercial banks functions in the country. National bank of Pakistan is an important part of
state bank of Pakistan that has the major strength of it. Bank is providing different facilities to
their different customers according to the wish of customers. Within the bank in branch of NBP it
has different department like cash and credit department, account opening department,
clearance department, deposit department, customer care services department, and remittances
department. The most common are these departments that are in almost every branch on bank. It
offers various deposit choice, advances, funds and securities, etc. for its customers. National
bank of Pakistan has too much power that is not available for other commercial banks in
Pakistan. It has the biggest market for the improvement because their branches in each rural
and urban areas. The challenge for the NBP that is facing as it is currently lack of the
implementation of the rules and regulations can lead to a low culture organizational structure,
the old organizational values and customs, no regular motivated practices and not much use of

42

information technologies in the Bank as the other. There are so many unions of worker and
employees in the banks so they play organizational politics rather than doing some productive
work. As analysis national bank of Pakistan is most growing banks in the Pakistan with highest
gain on their capital, immense market share among all the Pakistani banks and cost to income is
higher in banking industry. But there is some need for the improvement and betterment for the
bank to overcome its weaknesses and sustain the title as Asian tiger in banking industry.
3.2 General observation about institution:
I have done my internship in national bank of Pakistan Randhir More branch. I have performed
valuable services in my internship sector for their customers. If we look in the past 10 to 15
years we can see that there involvement of more banks for economic growth of Pakistan But in
the course of the last ten years, the performance of the banking sector in unbelievable. State
banks of Pakistan has also involved in the creation of more banks and regulating the market. .
SBP and other commercial banks meet the needs in the time of difficulties. The banking industry
is helpful in the creation of more jobs in country that approve as reduction of unemployment. The
banks offer a good opportunity for all young graduates to work together as they have opened a
number of branches in small towns. Banks play an important role in the movement of money
useful for the execution of economic strategy. The banks offer the following facilities for loans
that help in the fulfilment of short term and long-term needs.

Loans for students


Financing agriculture
Livestock milk and milk products sector loans
Finance and the advance wages

3.3 SWOT Analysis:


It is a strategic method that is used to evaluate the strength, weaknesses, opportunities and
threats in each organization.
43

Strengths

The nations bank


SBP Agent
Best foreign exchange bank
Strong network
With a large market share
LC (letter of credit) is accepted worldwide
SBP pay commission
Western union
The higher profitability
Public trust

Weaknesses

The lack of training of staff


Lack of general technical assistance
Number of parts online less than the other banks
The staff was not cooperative
No internal control
The poor working conditions
The missing plans
Recruitment of inexperienced and less knowledgeable staff
Irregularities in the promotion
The individual differences
Lack of coordination between the employees
The lack of respect for the elderly

Opportunities

Far-reaching economic
Expansion of the network
Banking services in line
The Bank deposits
It can play a vital role in the economy because of SBP Agent
The increase in credit lines
Consultative services
Issuing of bonds
Introduction of new products and services
New grace of management
Islamic banks
Micro-finance

44

Threats

Penalties by SBP due to low internal control


Instable politics
Downfall of economy
Projects Sick
Profit margin of the other banks
Employees switching off
Staff behavior
The charming atmosphere of other banks
Customer Dissatisfaction
An inability to change the structure
Lack of participating interest

4. Recommendation
To further add some contribution for the efficient and better performance NBP as an
organization in general and of the branch in particular, I am giving some recommendation or
suggestions which are as follow.

Trained and experienced staff should be hired.


To improve in efficiency of work NBP should use the latest technology.
NBP should design the promotion criteria according to performance of employees and
give promotion to employees at time.
NBP is likely to arrange a number of training programs for the enhancement of the
expertise and capabilities of the members of staff.
Environment must be customer friendly for the staff to work in it.
NBP should introduce the credit card and issue it to customers same as the other banks.
The workable load should be reduced because sometime in bank an employee performing
multiple task at a time so that why work burden increased on the employees.
During the initial days of months there are rush in the bank for salaries and pensions an

extra counter should be provide to reduce the difficulties.


Branches should Interlinked in all cities
For the complaints of customers there should be a separate customer service center.
Regularly base inspection
Employees should have authority to perform the task confidently.

45

Branch manager should give some bonus to their employee in order to take efficient work
from them.
There is a large gap of communication between headquarters and branch offices so there
must be a direct link with Head Quarter because it will help to management to get easily
and quickly response from headquarter.
Professional training should be required for the staff to analyze the reports that is

submitted for the loan.


There should be proper distribution of work between employees.
An amount should be charged on the guilty employees.
Make sure that all workers are working according to the rules and regulations.
Assessment should be unbiased, clear and protected.
An investigation team should be formed to investigate the market situation and date must
be keep fresh.

5. References
http://www.scribd.com/doc/55560054/1/DEFINITION-OF-BANK
46

http://www.nbp.com.pk/AboutUs/index.aspx
http://www.nbp.com.pk/Aamdani/index.aspx
http://www.nbp.com.pk/Premium/index.aspx
http://www.nbp.com.pk/Saibaan/index.aspx
http://www.nbp.com.pk/advancesalary/index.aspx
http://www.nbp.com.pk/cashcard/index.aspx
http://www.nbp.com.pk/Margin/index.aspx
http://www.nbp.com.pk/CashnGold/index.aspx
http://www.nbp.com.pk/KissanTaqat/index.aspx
http://www.nbp.com.pk/KisanDost/index.aspx
http://www.nbp.com.pk/Pakremit/index.aspx
http://www.nbp.com.pk/ProtectionShield/index.aspx
http://www.nbp.com.pk/karobar/
http://www.scribd.com/doc/35703077/Internship-Report-on-NBP
http://www.scribd.com/doc/56505031/Zahoor-Final-Report
http://www.nbp.com.pk/AboutUs/Vision.aspx
http://www.nbp.com.pk/AboutUs/Mission.aspx
http://www.nbp.com.pk/AboutUs/CoreValues.aspx
http://www.nbp.com.pk/AboutUs/Goals.aspx
http://www.scribd.com/doc/35703077/Internship-Report-on-NBP
http://www.nbp.com.pk/AboutUs/BOD.aspx
http://www.nbp.com.pk/BRNTWRK/AtmFinder.aspx
http://www.nbp.com.pk/BRNTWRK/DomesticBrLocator.aspx

47

http://www.nbp.com.pk/BRNTWRK/IslamicBrFinder.aspx
http://www.nbp.com.pk/BRNTWRK/OnlineBrFinder.aspx
http://www.nbp.com.pk/BRNTWRK/OverseasBranchFinder.aspx
http://www.nbp.com.pk/BRNTWRK/SwiftBranchFinder.aspx
http://www.nbp.com.pk/BRNTWRK/CFCFinder.aspx
http://www.nbp.com.pk/AboutUs/Awards.aspx

48