B.Z.U.

BAHADUR SUB CAMPUS

PREFACE
Internship is the integral and basic requirement of all the business study programmes in all of
the business study institutes as it is necessary and basic requirement of the BBA(Hons)
degree of the Department of Management Sciences The BAHAUDDIN ZAKARIYA
UNIVERSITY LAYYAH CAMPUS
Because it is the practical implication of the theoretical knowledge which we have taught in
our business subjects to gain further knowledge and experience about professional business
activities.
It equips us with the necessary knowledge, skills and values of business culture which are
basic requirement of the business professional and which also helps new graduates to perform
professionally as they get first step in their practical professional life.
For this reason I was placed at Nationakl Bank of Pakistan Layyah Branch. where I have
done my Eight weeks internship.
During my internship tenure I have gained a lot of knowledge about operations. During my
whole duration I rotate in all the different departments of the bank and was thoroughly
briefed about the procedures of all the banking operations by the concerned staff. My
internship report contains all the knowledge which I have learnt there.

B.Z.U. BAHADUR SUB CAMPUS

ACKNOWLEDGEMENT
All praises are for Allah Almighty that has bestowed upon human being the crown of creation
and has endowed him with knowledge and wisdom.
After Allah ,The last Prophet Mohammad (PBUH) Who brought for us revelation and
unlimited knowledge and civilized the barbarian humanbeing.
I am very thank full to Allah Almighty who gave me the courage to complete this complex
task and to my ever caring and loving parents whose prayers helped me to reach this stage of
my life.
Besides, there are many people who supported me in formulation of this report and without
the support of them I could never be able to complete this report successfully.
In this respect I am very thank full to Mr.Aslam Khan (Branch Manager), Mr.Mavzar Kalu
(Operations Manager) and the qualified staff members of NBP Layyah Branch ,who
cooperated with me with their guidance at each step of my internship.
They have provided me a lot of important information and knowledge about the banking
operations in a very short period of time.

B.Z.U. BAHADUR SUB CAMPUS

Dedicated
To
My ever caring and loving Parents
&
Respectable Teachers
Mr. Rashid Saeed
Mr. Hasnain
Mam. Anum Zulfiqar

B.Z.U. BAHADUR SUB CAMPUS

TABLE OF CONTENTS
INTRODUCTION

Vision

Mission

About National Bank of Pakistan

PRESENT STATUS AND HISTORY

DEPARTMENTS OF NBP

1.Account Opening

and Closing Department

2.Cash Dealing Department

10

3.Clearing Department

10

Functions of NBP

12

SWOT ANALYSIS

13

STRENGTHS

13

WEAKNESSES

13

OPPORTUNITIES

14

Threats

14

Work done by me

19

OPENING NEW ACCOUNT BASICS

20

INVESTIGATION

20

ISSUANCE OF CHEQUE BOOK

24

SUGGESTIONS AND RECOMMENDATIONS

27

INTRODUCTION

B.Z.U. BAHADUR SUB CAMPUS

It is an uphill task to trace the origin of word bank. Some people think that banco is the
origin of bank. Banco means a bench. The early bankers had done their business on the
benches in Lombardy-Italy. There are others who say that back is the origin of it. It is a
German word and means a joint stock fund. There is no record for checking the correct
opinion. We can say that;
The Bank is a man who lends you an umbrella when the weather is fair and takes it away
when it rains.

What is Bank?
A bank is an institution for the custody, loan or exchange of money for sanctioning credit, for
transferring funds by domestic foreign bills of exchange. It is a pipeline through which
currency moves into and out of circulation.
As it is clear from the definition of banking, the main activity or function of banking is
borrowing and lending of money with a margin of gain. However, as far as the present day
banking is concerned, there are a number of different banks, set up under specific different
objectives, performing various functions.

B.Z.U. BAHADUR SUB CAMPUS

Vision
To be the pre-eminent financial institution in Pakistan and achieve market recognition both in
the quality and delivery of service as well as the range of product offering

Mission
To be recognized in the market place by Institutionalizing a merit & performance culture,
Creating a powerful & distinctive brand identity, Achieving top-tier financial performance,
and Adopting & living out our core values.

B.Z.U. BAHADUR SUB CAMPUS

About National Bank of Pakistan
National Bank of Pakistan maintains its position as Pakistan's premier bank determined to
set higher standards of achievements. It is the major business partner for the Government of
Pakistan with special emphasis on fostering Pakistan's economic growth
through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches locally,
internationally and representative offices.

Aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers.

Prudence to guide our business conduct.

A national presence with a history of contribution to our communities.

Shall work to

Meet expectations through Market-based solutions and

products.

Reward entrepreneurial efforts.

Create value for all stakeholders.

Aim to be people who

Care about relationships.

Lead through the strength of our commitment and willingness to excel.

Practice integrity, honesty and hard work. We believe that these are measures of true
success.

Confidence that tomorrow NBP will be

Leaders in our industry.

B.Z.U. BAHADUR SUB CAMPUS

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to the changing needs of

the internal and external environment

PRESENT STATUS AND HISTORY

National Bank of Pakistan maintains its position as Pakistanis premier Bank determined to set
higher standards of achievements. It is the major business partner for the government of
Pakistan with special emphasis on fostering Pakistanis economic growth through aggressive
and balanced lending policies, technologically oriented branches.
The National Bank of Pakistan came into existence on 20 th November 1949 under the
National Bank of Pakistan Ordinance No.21 of 1949.It is a semipublic bank and functions
like other commercial banks. Therefore it receives funds from the depositors and provides
loans/credit facilities in all sectors including trade, industry and agriculture.
It also functions as an agent of the Central Bank and operates the treasuries at places where
no branch of State Bank of Pakistan exists. The National Bank of Pakistan was also
nationalized, along with other banks, in January 1974. The Bank of Bahawalpur was also
merged into this Bank.

Branch Network---National Bank of Pakistan

Overseas Branches

Domestic Branches

16 Overseas Branches
4 Representative offices
1 Subsidiary
1 Joint Venture

29 Regional Offices
1190 Branches
130 Online Branches
4 Subsidiaries

DEPARTMENTS OF NBP
1. Account Opening and Closing Department
Basically function of A/C opening & closing in NBP is performed under Accounts
department but I am discussing it with separate heading for better understanding.
Firstly all types of Accounts which can be opened in NBP have been described:

B.Z.U. BAHADUR SUB CAMPUS

TYPES OF ACCOUNTS
1. Current account
2. Saving account
Brief explanation of the two main accounts is as follows:

CURRENT ACCOUNTS
Current A/c is basically used to meet the daily transactions. Current account provides safety
to the customers money, gives the advantage for paying debts by the convenient and safe
means of sending Cheques through the post thus avoiding the trouble and loss that units in
PKR, Us$ GBP and DM.

SAVING ACCOUNT
In case of saving accounts, account holder gets profit. There is a time limit for drawing cash;
customer cannot draw money before a certain time.
In NBP saving a/c is used as current a/c & there is no main difference between current &
saving account except profit.
This account can be opened by limited company, Partnership Company, club societies &
associations, joint & sole proprietorship.

HOW TO OPEN AN ACCOUNT (GENERAL)

When a person intends to open an account, a card is filled & signed by customer. This card
contains:

Six boxes for name

Opening date

Special instructions

Space for first A/C No.

Space for other accounts

Following points are considered by the bank in this regard:

a.

Another account holder of the bank should properly introduce the new
customer.

B.Z.U. BAHADUR SUB CAMPUS

b.

The account holder should sign the account opening form in the presence
of bank officer and the signature is duly verified.

c.

A copy of identity Card is required by Bank.

d.

Against submission of the Banks prescribed application form, duly

introduced in the manner provided and on supplying such document, as may be
required and account may be opened. The Bank reserves to itself the right to
refuse to open and account without assigning any reason.

e.

Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.

f.

Minimum amount for opening and continued maintenance of accounts is

Rs.5, 000 for both current and saving.

The bank reserves the right to change the above mentioned minimum balance requirement at
any time without any notice.
HOW TO CLOSE AN ACCOUNT
The account can be closed by the customer. The customer is required to submit an application
for closing the account. Then the account is closed out and his balance is paid to him. Cheque
book is returned back to bank and the officer cancel and the remaining cheques in cheque
book.

2. Cash Dealing Department

Cash department of NBP is given the complete responsibility of handling all receipts &
disbursement of cash. As a result of transaction in both local, foreign currencies & near cash
items: as traveler cheque etc (when they are issued against cash).
As a consequence it is also responsible for the book keeping of these transactions & the safe
custody of cash & near cash securities of NBP.
a. Cash receipts for receive deposits.
b. Encashment of cheque
Cash department of NBP is a separate close part covered with glasses. No one other than cash
departments employee is allowed to enter into that area.

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B.Z.U. BAHADUR SUB CAMPUS

3. Clearing Department
Nearly all the banks provide a wide variety of services to their depositors. One valuable
service provided is that of clearing. Clearing department also plays an important role in
performing the activities of the bank.
The basic function of clearing department is to provide services to customers in collection of
their cheques of other banks, whether they are in city or outside the city. The customer can
get the money in his account at NBP from the cheques drawn on another bank. The bank
accepts the cheque in the clearing which it is drawn through the clearing house i.e., State
Bank of Pakistan.
Clearing
We can define clearing as, the transfer of funds from one branch of bank to the other branch
of the same bank or the other bank on which the instrument is drawn, without involving cash
through State Banks clearing house or we can say in other that cheques which can not be
cash at the ash counter of the bank.

Clearing House
It is of the service provided by central bank i.e. State Bank of Pakistan to the other
commercial banks. SBP acts as a clearing house. A representative of each bank represents his
bank in the clearing house.
A clearing house is an association of commercial banks set up in a given locality for the
purpose of interchange & settlement of credit claims.
The SBP maintains the accounts of the NBP like other scheduled banks and debits the
account of the drawee bank and credits the presented bank which is NBP in that case.

TYPES OF CLEARING
Clearing department deals with the two type of the clearance.
These are stated below:
1. Inward clearance
2. Outward clearance

1. Inward clearance

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B.Z.U. BAHADUR SUB CAMPUS

Cheque drawn on NBP, presented to other Banks or handed over to NBP agent in
clearing house. That is inward clearance for NBP. So inward clearing results in
outflow of funds to collecting bands reducing the balance in the clearing account.

2. Outward Clearing
Similarly cheques which are drawn on other bank and presented to NBP Main branch
Jhang are known as outward clearance for Main branch Jhang. So outward clearing
results in inflow of funds from paying bank into the clearing account maintained with
clearing house increasing the balance in the clearing account.

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.
1. Accepting of deposits of money on current account, saving, term deposit and other
profit and loss sharing accounts.
2. Borrowing money and arranging finance from other banks.
3. Advancing and lending money to its clients.
4. Financing of projects including technical assistance, project appraisal through long
term/short term loans.
5. Buying, selling, dealing and discounting of bills of exchange, promissory notes,
drafts, bill of lading, other instruments of securities etc.
6. Foreign exchange business.
7. Financing of seasonal crops like cotton, wheat, rice,
8. Receiving of bonds, scripts, valuable etc. for safe custody.
9. Carrying on agency business of any description other than managing agent on
behalf of clients, including government and local authorities.
10. Generating, undertaking, promoting etc. of issue of shares, bonds.
11. Transacting guarantees and indemnity business.
12. Undertaking and executing trusts.
13. Making investments in other banking companies.

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B.Z.U. BAHADUR SUB CAMPUS

14. Joint venturing with foreign dealers, agents and companies for its representation
abroad.
15. Participating World Bank's and Asian Development bank's lines of credit.
16. Utility services.
17. Providing Hajj services to intending Hajjis.
18. Agent to State
19. Bank of Pakistan for collecting
20. Payment of pension on behalf of provincial and central governments.
21. Treasury business
22. Gold finances.

SWOT Analysis of National Bank of Pakistan

is the overall analysis of a companys strength, weakness, opportunities, and threats
are called SWOT analysis. It is the way of monitoring the external and internal
analysis of the marketing environment. The SWOT analysis of the National Bank Of
Pakistan is as follows:

Strength
One way to keep momentum is to have constantly greater goals

More equity.
Being the pioneer of banking in Pakistan, NBP is one of the oldest banks and is the
richest in experience.
NBP focuses on consumer banking by lucrative schemes, products and services
suiting best to the wants and demands of the customers.
The band is always on the look to improve its services both to the domestic as well as
overseas customers.
Human resources development and introduction of new technology towards modern
banking.
24 hours cash access and safe payment products for high value transaction.
NBP instant financing products for customers wanting instant loan facilities NBP
branches.
Having potential to encounter the competitive environment in the market.
Customer enjoys the services at the residential localities.

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B.Z.U. BAHADUR SUB CAMPUS

Weakness
Extremely burden on employees due to work pressure.
No coordination among the employees.
Discrimination in services to customers with large and small accounts.
Inconsistency in efficiency and working atmosphere due to the largest of branches.
Poor Discipline/Punctuality, Poor Dealing
Lesser number of employees
Nepotism, Ambiguity in Assessment Procedure
Security Cameras are good for nothing
Critical Process, Information Desk
Compliant Box is not safe.

Opportunities
The following opportunities should be availed by the bank:
The bank should avail the Deposit mobilizations
It should Introduce new products
Should Improved marketing strategy
Should Advertise the products and services
E-banking facility is also a new opportunity which is a flourishing business in foreign
countries

Threats
Facing more competition by foreign banks in the market.
Also the increasing operation of private banks.
Highly attractive and advance services by foreign banks to their customers.

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B.Z.U. BAHADUR SUB CAMPUS

The threat of inconsistency and government policy regarding to business and
economics sectors, specially political and regional situation which makes the
environment uncertain.
Growing global technological advancement.
Strict regulation by government over credit facilities to the customers Loss of
confidence of overseas customers due to freezing of accounts.

PESTEL Analysis of National Bank of Pakistan

ere are many factors in the macro-environment that will effect the decisions of the
managers of any organization. Tax changes, new laws, trade barriers, demographic
change and government policy changes are all examples of macro change. To help
analyze these factors managers can categorize them using the PESTEL model.

This classification distinguishes between:

ANALYSIS FINANCIAL
The financial results of the company for the year under review compared with the
preceding year are tabulated below:

Gross Profit
Operating Profit

2012
988625899
/ 83245239

(Loss)
Profit before taxation
Profit after taxation
Earning per share

1325679654
1,256,127,201
21.45

Ratio Analysis

Liquidity Ratios

Financial Leverage or Debt Ratios

Activity Ratios

Profitability Ratios

Liquidity Ratios

15

2011
923539621
765432987

2010
45,407,183
1,478,569

1031,523,549
1,113,293,807
18.23

4,401,781
213,060,882
254,551,589

B.Z.U. BAHADUR SUB CAMPUS

Liquidity ratios are used to measure a firms ability to meet short-term obligations. From
these ratios, much insight can be obtained into the present cash solvency of the firm and the
firms ability to remain solvent in the event of adversity.

Current Ratio
Current Assets/ current liabilities

2010

2011

2012

1.28

1.45

1.78

Above figures show that in 2011 ability to covers its current liabilities is good. As firm is
manufacturing so current ratio of 1.45 is acceptable. In each year current ratio is more than 1.
Hence firm is good regarding current ratio and if we compare horizontally 2012 is better one.

Quick Ratio
Current Assets-Inventory/current liabilities

2010

2011

0.95

0.87

2012
1.05

This ratio serves as a supplement to the current ratio in analyzing liquidity. This ratio is same
as current ratio except that it excludes inventories. The ratio concentrates primarily on the
more liquid current assets, cash, and receivables. .

Financial Leverage (Debt) Ratios.

Ratios that simply show the extent to which firm is financed by debt.

Debt Ratio
The debt Ratio indicates the firm long term debt paying liability and it is computed as follows

Debt to Equity
Total debt/total equity

2010

2011

43

98

2012
73

It indicates the percentage of assets financed by creditors and it help to determine how well
creditors are protected in case of solvancy.

Debt to Total Assets

Total debt/total Assets

2010
.80

16

2011
0.95

2012
0.92

B.Z.U. BAHADUR SUB CAMPUS

It shows the how is your debt to meet the companys total Assets so your Assets can minimize
your debt finance.

Time Interest Earned Ratio:

EBIT / interest expense

2010

2011

14time

2012

18 times 11 times

It measure the percentage of interest paid by the earnings.

If we compare horizontally ,we see 18 is better one because in 2011 EBIT is better and interst
is less. So 2011 is good than other one.

Activity Ratios:

These ratios are also known as efficiency or turnover ratios. Measures how effectively a firm
is using its assets. It is calculated by dividing cost of goods sold by average inventory or by
dividing Net sales by Inventory.

Receivable Turnover
Sales/account receivable

2010

2011

1.35time

1.54 times

2012
1.76 times

It shows the total receivable on net sales in 2011 was 1.54times but in 2012 it increase to 1.76
times so receivables is better than previous ones.

Average Collection Period

A/R /net sales .365

2010

2011
9days

12 days

2012
5 days

LSM shows best performance for the yearly basis to collection of debts that is more
important for the company in 2011.

Inventory turnover Ratio:

C.G.S/Inventory

2010

2011

2012

12time

15 times

08 time2010

2010

2011

2012

14days

21days

12 days

Inventory Turnover in Days

C.G.S/INV .365

Inventory in days is meaningful in 2011 but in 2012 it shows best inventory that is efficient
so less days shows best performance of LSM

Total Assets turnover:

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B.Z.U. BAHADUR SUB CAMPUS

Net Sales/ Total Assets

2010

2011

2012

1.25

1.45

2.65

The total asset turnover ratio tells us the relative efficiency with which a firm utilizes the total
assets to generate sales. This is calculated by dividing the net sales with total assets.

Profitability Ratios:
Profitability Ratios are of two types --- those showing profitability in relation to sales and
those showing profitability in relation to investment. These ratios indicate the firms overall
effectiveness of operation.
Profitability in Relation to Sales

Net Profit Margin

Net Income/Net Sales

2010
0.35

2011

2012

0.45

0.65

The net profit margin is a measure of the firms profitability of sales after taking account of
all expenses and income taxes. It tells us a firms net income per dollar of sales.
In the year 2011 the firms profitability after taking account of all expenses and
income taxes is 14% of net sales. We can say that firms net income of sales is 14%..

Return on Equity
Net Income / Shareholder Equity

2010
0.80

2011
0.98

2012
0.64

It shows the company capital in 2009 is 66% of total equity to shareholders thats more
beneficial for FSML but in 2010 it not meet the previously 61% that is distributed among
equity holders, common stock holders.

MY 06 WEEK ACTIVITIES:
I start my internship on 25-06-2015 first day I was introduced by the staff and introduce
me with different department of the NBP and give me information about the functions of the
departments. I work here for six week and do my best in account department

First week I deal with petty cash vouchers. I see that how much amount they pay in
cash and what will be the process of vouchers and how they enter this.

Second week I deal with bank vouchers and adjustment vouchers and see how they
done it.

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B.Z.U. BAHADUR SUB CAMPUS

Third week I work in income tax department and see how they give income tax on
different supplies in different percentage.

In forth week I see sale tax invoices and see how they prepare general sale input
statements and try to get it perfectly.

Fifth week I learn how to prepare sale and salary sheet how they deduct taxes and
give them allowances to the employees.

In last week I study the annual report of NBP Layyah Branch and over view of all the report
and analysis it to see the position industry.

Work done by Me
For internship, I was asked by my coordinator to go National Bank of Pakistan to have an
internship. In the National Bank of Pakistan, I really enjoyed working with the staff of Aslam
Mor Layyah Branch. It was almost impossible to work in all the departments within that
limited time. But on my request, the staff of the branch provided me the opportunity to work
in the different departments for the sake of practical knowledge. I feel highly indebted to
work in the Aslam Mor Layyah Branch the request of the manager of that branch Mr Aslam
Hans, because I learnt a lot in that branch. As everybody knows that:
"Knowledge without practice is sterile
In order to give vent to this idea an Internship program of two months has been arranged in
different esteemed organizations during BBA.
On my first day of Internship, Manager handed me over the charge of Assistant to
Accountant.
As three departments namely Accounts, Cash and Billing, and Clearing were being managed
by the Manager in this particular branch. I started my practical training by giving tokens for
the cheques to withdraw and entering them into token book. This was the routine work that I
had done it daily. At the time of closing exact position of cash in hand, Receipts and
Payments were evaluated. The Manager and the Accountants duly signed
this evaluation.
National Bank of Pakistan collects utility bills on behalf of WAPDA by
putting the stamp on the utility bills Paid, Date of payment, Signature of

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B.Z.U. BAHADUR SUB CAMPUS

the officer receiving the utility bills. I collected bills of GEPCO, during period of my
internship. After receiving utility bills a list is made on the form, which is called Bills scroll
form. One copy of the scroll is with the bank for evidence whereas the original copy with the
receipt of the bills is sent to the billing department of the respective corporation. The bank
charge commission on the bills.
After some days, I came under the supervision of the Cashier who got me
to know, how the books of cash are balanced at the closing of each day. I
too learnt to prepare General Ledger which is called as the mother of all
books used in the branch. It was really a tough and daunting task.
After 4 weeks, my Manager tells me about the transfer book which keeps the record of the
transfer of funds between clients of bank. I have also worked with manager in Advance
salary, Gold loan, and Account opening.

OPENING NEW ACCOUNT BASICS

During the span of mine internship in NBP, I learned and observed a lot about the opening of
an account. Basically, I think that the opening of an account is the establishment of a
contractual relationship between the banker and the customer. By opening an account at bank,
a person becomes a customer of bank. Further, I am going to express the basic requirements
and steps involved in the opening of an account.

INVESTIGATION
Before opening an account NBP as like the other banks in Pakistan ascertain whether or not
the person who is going to open the account is a desirable customer or not. Then NBP
determine the prospective customers integrity, respectability, occupation and the nature of
business by the introductory references given at the time of account opening. Negligence in
this informal preliminary investigation may result in serious consequences not only for the
banker concerned directly but also for other bankers and the general public who may be
affected indirectly.

HOW TO OPEN AN ACCOUNT (IN GENERAL)

Before opening an account in NBP, I observed that the following points must be considered in
this regard.
1. Another account holder of the bank should properly introduce the new customer.
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B.Z.U. BAHADUR SUB CAMPUS

2. The account holder should sign the account opening form in the presence of bank officer
and the signature is duly verified.
3. A copy of identity Card is required by Bank.
4. Each account shall be allotted a distinct number that is to be quoted in all correspondence
with the bank relation to the account.
5. Minimum amount to open an account is required regarding the nature of account.

PROCEDURE TO OPEN AN ACCOUNT

According to my practice in NBP, when a customer wants to open an account, the bank
officer gives him an application form. All information, which is necessary to be known by the
bank, are requirements of the application form. Form also requires the essential documents to
be attached by the customer.
Basically following information is required to open an account with NBP:
1. Title of Account
2. Full Name of Applicant
3. Occupation
4. Address
5. Telephone No.
6. Currency of account
7. Nature of Business
8. Introducers Name, Address & Signatures
9. Special instruction regarding the account
10. Initial Amount of the Deposit
11. Signature of the applicant

PROCEDURE TO HONOR AN ACCOUNT

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During my internship training in the National Bank of Pakistan, I observed and found
Cheques are received for the following purposes.
i.

For Cash payments

ii.

For transfer (from one account to another account)

iii.

For Clearing

FOR CASH PAYMENT

Cheques which are presented on Bank counter must be checked in the following way:
1)

Date.

2)

Signature of Drawer.

3)

Signature of Payee.

4)

Whether Bearer has cancelled.

5)

Whether Payee account duly is there.

If condition 4&5 exist then check the signatures of Drawer.

6)

Match the figure and wordily amount of cheque.

When all above matters are satisfied then come to the Token register and check:
1)

Token number.

2)

Cheque number.

3)

Amount of cheque.

4)

Particulars.

Two stamps are put on cheque.

a)

Cash Payment (on the face of cheque).

b)

Stamp for Token (on the back of cheque).

On stamp which is put for token their details are as follows:

Token number.

Time of giving token to client.

Signature of token giver.

CHEQUES FOR TANSFER

When cheques are presented to be sent for collection and drawn on bank situated
within the city then there are three stamps to be put on face as well as on back of
cheque.
a)

Crossing Stamp (face)

b)

Transfer Stamp (face)

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B.Z.U. BAHADUR SUB CAMPUS

c)

Bank Manager Stamp (back)

Only in MCB branches

CHEQUES FOR CLEARANCE

There are two stamps put on each cheque, sent for clearing:
a)

Crossing Stamp.

b)

Manager Stamp.

CHEQUES IN COLLECTION
When cheques received in clearing are intra city then these are controlled under CC.
First of all, these cheques are recorded in day book then allotted number and then
serial number. Then a Performa is prepared in which Bank on whom was drawn,
cheque number, amount, beneficiary name are recorded. After completing that
Performa cheque is posted along with Performa.

CLEARING
Following information is entered in clearing register.
a)

Name of favoring party.

b)

Name of bank on whom drawn.

c)

Branch.

d)

Cheque number.

e)

Amount.

Clearing is sent after entering in register. In clearing register future date and day is
putted. Cheques and vouchers are then separated and Cheques are sent for clearing.
Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by
giving debits to cheques received in clearing from other branches. At the beginning of
the day clearing return sheet is received.
Vouchers are made if
1.

Clearing received is more than clearing delivered then Credit voucher.

2.

Clearing delivered is more than clearing received then Credit voucher.

On the same day, credit vouchers sent for clearing are entered on the sheet's credit
side. Cheques are sent to NIFT after taking them on calculator, their total amount
along with total number of instruments. A summary is prepared and sealed after
noting the number of seal in summary.

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Telephonic Transfer
DD- Demand Draft
PO- Payment Order
For TT, the account of beneficiary must be there in branch. DD is also prepared and
beneficiary can get payment.
First of all, Performa is filled by purchasing party along with cheque or cash payment.
When cheque is received it is first posted in computer section in order to check the
balance of account. After posting the bank officer calculate tax if National Tax
number is not there. i.e.
Rs.100000 @0, 1%
More than Rs.40000 @0.4%
Commission and postage charges are also calculated. These are paid in cash or
otherwise by cheque.

ISSUANCE OF CHEQUE BOOK

During my period of internship in NBP, I observed that when an
account is opened then a cheque is issued to the customer for
drawing his money at per rules. Following procedure is adopting for
the issuance of cheque.
When a customer opens an account with the bank, he is provided with cheque book for
withdrawals from account. However, the first cheque book is given to the customer only
when all the required documents are checked. A cheque book contains ten, twenty five, fifty
or hundred leaves. The cheque book also carries a requisition slip for the issuance of the new
cheque book. This slip is duly filled and singed by the customer. The signature of the
customer is verified by the bank and new cheque book is issued to the customer and serial
numbers of the cheque are duly entered in the book of the bank. Along with the signature,
person should also write his full name & address.
Usually only one cheque book is issued at a time, however big concerns who need a number
of cheque books at a time, may ask the bank to stock as number of cheque books in their
name and to point their name on these cheque books.
Bank debits the clients account for excise duty of Rs.2.50/- per cheque and keeps the cheque
book ready for the customer, as on his advice.

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The officer keeps and maintains the cheque book register Cheque book inventory and cheque
books issued are recorded in this register. The account number for which the cheque book is
issued and the number of leaves are also recorded in this register when the cheque book
issued an entry is passed in the cheque book issue register.

As I have learnt many things during my internship but being specific to our classroom
learning in the organization following are some critics on it:

Financial Management
Finance has a major role in the banking sector because the transactions being done in this
sector is related to finance and it is the most important player in the banking sector. The
products offered by the Banking and Finance Sector are largely intangible. Thus, efforts to
identify assets are largely focused on critical processes rather than physical assets. Only the
financial management is able to help in this context

Use of risk assessment in the sector:

The Banking and Finance Sector has a long-standing and accepted practice of conducting risk
assessments. These assessments also consider vulnerabilities stemming from direct or indirect
threats to the physical and cyber-based operations across the sector.

Challenges and continuous improvement:

The evolving nature of the Banking and Finance Sector imposes a challenge on the banking
sector. The Treasury Department and its public and private sector partners must remain aware
of emerging technologies and vulnerabilities that the sector may face to determine whether
the metrics are appropriate for the sector. Another challenge for the sector is addressing and
managing the risks associated with the sectors interdependencies.

Research and Development

There should be formed a R&D Committee to further develop plans and programs that would
provide the most significant benefits to the bank for requirements of the financial services
sector an any other sector. In June 2006, this committee issued a list of research challenges
that provide information security professionals with tools for addressing known
vulnerabilities in the sector.

The Marketing Mix in the Banking Sector

Service:

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The norms of the banking sector have gone beyond to the just selling money to the services
offered to the people. They also are seeking for the good name of their bank by offering
different services to the masses. Besides the services like speed, security and ease they are
also providing the rights of consulting for services.

Price:
Prices are named differently for different transactions. Banks set their prices according to the
services offered by them. The prices in the banking has names like interest commission and
expense. Price is the sole element of marketing in the banking sector while other creates
expenditures. Elements of marketing mix other than price affect sales volume, while price
affect both sales volumes and profit directly.

Distribution:
The most important feature of banking is the persuasion of customer benefiting from services.
Almost every author argue that those features of banking makes personal interactions
between customer and bank obligatory and direct distribution in the sole alternative.

Promotion:
It includes following:

Personal Selling:
Personal selling is the most preferable way of expanding selling. Personal selling is being
done either face to face in the branch office or the customer representative go to the customer
place. In the former all the employees, chief and the office manager takes part in selling.

Public Relations:
Public relations in banking should provide;
1. Establishing most effective communication system
2. Creating sympathy about relationship between bank and customer
3. Giving broadest information about activities of bank.

The Role of HRM in the Banking Sector

Human resource management plays a very important role in the banking sector as it plays in
the other forms of organization. HR officers manages the employees, decides for the
incentives, promotions, salary and with all this the HR managers motivates the employees.
Downsizing, appraisals and up gradations are being done keeping in view the employees
performance.

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Besides these, some other subjects has also got a significant role in the banking sector for
example operations management, business communication, total quality management,
behavior of the consumer etc. These subjects provides the basic values of the business.

SUGGESTIONS AND RECOMMENDATIONS

Although NBP is included in ten top most banks of the world equity as well as assets wise.
But for the further improvement in various sectors my recommendations to the bank would
be as follows:

NBP should become very specific about its competitors, so that it can understand who
its competitor is in the first degree and who is in the second degree. Then the firstdegree competitors should be watched closely

A research cell should continuously try to gather information about the present action
so its competitors and expected future actions. So in this way more effective strategies
can be formulated.

The performance reward linkage should be making strong as it is said, "A happy
employee delivers more than he receives from the organization." The NBP should also
try to make its employees happier.

There is immediate need, to reconstruct the personnel policies. Selection should be

through newspaper advertisements.

In this way more intelligent, efficient and

qualified staff can be formulated.

It is strongly recommended that NBP should go for computerization rather than

manual work, which is very slow and time, consuming process. In this age NBP even
does not have a partially computerized system where as other new competitor banks
are now going towards on-line banking services.

Govt. should take keen interest to recover its bad debts, which can improve its
financial position.

In case of giving the loans, it is necessary to check the repute of customer towards
loan repayment. Bank shouldnt advance the money to those people who are addict of
rescheduling of loans due to their political influences. Instead providing loans to these

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persons, loans must be advanced to the well-reputed businesses and industries having
good record of loan repayment.

Along with the officers, the training must also be given to the clerical staff. Because
of NBP are running on manual system and the training of its staff directly improving
their efficiency of work.

Present training program for its officers is need to be improved, as this program
instead of improving the efficiency of officers is merely a burden for the bank in the
form of heavy T.A. , D.A. and cost.

Working conditions must be improved for the employees. Bank will definitely get
more benefits after some expenditure on the working conditions as it improves
efficiency and productivity of the employees.

NBP should flourish certain marketing plans to attract the customers by giving them
certain incentives and beneficial schemes to the customers as other competitor banks
are doing so.

There is also a need of proper recruitment and selection program. New young talent
should be introduced to inject the new ideas.

Deterioration in efficiency is mostly due to promotion without merit. So promotions

must be awarded on merit and also when due.

Special attention should be given to the behavior of the employees towards the
customers, as customer is the most important person for any bank.

There are many employees who are working on ad-hoc basis creating dissatisfaction.
The deserved should be made permanent employees.

Political influences in the bank should be eliminated.

To motivate the employees of the bank, regular bonuses and incentives should be
given to them.

There must be a friendly environment among all the employees as it enhances the
trust and sincerity.
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NBP should be focusing its attention towards the share of traveler cheque.

Branch manager should be trained in the field of selling to serve better according to
the expectation of customers.

The recruitment policy should be fair and transparent.

Management should increase the branch limit of expenditure to fulfill the necessary
expenditure of personnel. Relations.

IF I AM THE MANAGER OF FINANCE DEPARTMENT, WHAT

I DO.
This is very important for me if I am In the post of incharge of finance manager the
what I do. This is a very difficult work for finance manager to control and oversee all the
finance of the NBP Branch Layyah. I am a student of BBA what steps are difficult for me to
controlling all dealing about cash and how much problem. I will face during cash related of
finance related.
So if I become a finance manager of NBP Layyah Branch then I follow many different steps to
deal and control all finance transactions.

I make different types of finance strategies to use the finance is a proper way.

I also make different plans to control the finance.

I make different policies according to finance related problem.

I make proper interest rate to use finance with bank.

I make different easy rules to extend area of finance.

I also make policies ad procedures to improve cash department

I make new and new rules to avoiding finance errors In different accounts.So these are
my some steps that I want to fulfill in the the NBP Layyah Branch as a finance

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manager. If I will select as a finance manager then I will try to improve these all skills
and knowledge to improve NBP In Pakistan.

SUGGESSIONS FOR IMPROVEMENT

Internal Audit Department should check each voucher.

Internal Audit Department should conduct monthly audit of accounts and

Submit its report to Chief Executive, General Manager, General Manager Finance and
Manager Accounts.

No room is available for external auditors in whole group, at least two room should be
arranged permanently for external auditors.

Accounting Software should also be improved.

At least one I.T Engineer should be appointed at site Office. Job rotation principle
should be implemented.

The H/O should be connected through Internet with the site.

Cost of telephone and transformation of data can be reduced.

CONCLUSION
With Cooperation of all branch members, I have been able to learn and experience many new
things related to the Finance sector and the NBP Layyah Branch workings. I am able to
handle the public with respect to many different workings on many different instances and
can handle many other tasks as well.
Finally I concluded that NBP Layyah Branch is a good organization for a person for his long
term career workings. Overall working and environment of the NBP Layyah Branch is very
comfortable and the staff is very helpful and respectful of each other and it still maintains a
professional environment. Management of the Bank Ltd but by all the organizations. Even
though the people have been sacrificed in the new organizational developments, it is

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becoming clear that the true lasting competitive advantage comes through human resources
and how they are managed.

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