NBP Final Campus Submitted New

National Bank of Pakistan
INTERNSHIP REPORT | 1
A LL A H
The most beneficent, the most merciful
And we split the earth in fragment and produce there corn, and grapes,
and nutritious plants and lives and death and enclosed garden dense with
lofty trees and fruity and fodder, for use and convenience to you and your
cattle.
(Al - Quran - Ul - Hakeem)
INTERNSHIP CERTIFICATE SCAN COPY
Dedication To
My Parents and Teachers

WHO HAVE BEEN EVERGREEN SOURCES OF GUIDANCE,
INCOURAGEMENT AND INSPITARION FOR ME!
ACKNOWLEDGEMENT
With the name of Allah who is the most beneficial and merciful. I am very gratifying
to Almighty Allah who permitted me to be trained in a real world organization, NBP,
as well as to complete this report in a very limited time.
I am grateful to the dynamic, congenial, and qualified staff of NBP who never let me
alone in different situations related to my internship. Without their humble help, it was
not easy.
I cannot forget to pay my special thanks to manager, NBP Main branch Multan, who
managed the internship for me.
I am grateful to my prestigious institute that made his learning opportunity as part of
our education. I am also thankful to all other teachers as the knowledge imparted by
them enables me to gain to gain knowledge of the organization in best way.
In the end I would like to thank all of my friends and family members for their
support and encouragement.
EXECUTIVE SUMMARY
This report is about my internship program in NBP In this comprehensive report, I

have discussed about every major aspect of the bank, which I observed and perceived
during my internship program.
During my internship program, I mainly worked in Retail Banking, General Banking
and Finance. All the departments have been discussed in detail and all the policies and
procedures have been described thoroughly.
As the main purpose of internship is to learn by working in practical environment and
to apply the knowledge occurred during the studies in a real world scenario in order to
tackle the programs using the knowledge and skills learned during the academic
process, in this report the detail analysis of the organization has been done and all the
financial, technical, managerial and strategic aspects have been evaluated to analyze
the current position of the organization.
This report is based on the activities which are performed in this bank. This report
contains financial analysis, SWOT analysis, and Critical analysis and competitive
analysis of NBP. There are also stated the activities which I performed during my
internship in the branch. In this report also discuss the history of NBP, organizational
structure their corporate level strategies, structure of finance department and its
functions are thoroughly discussed. In the advance side the bank has been successful
in deploying its resources in the best way in all commercial, industrial and agricultural
sectors of the country. These advances have been increasing with the increasing trade
and commerce, and bank has been able to meet the requirements up to maximum
extent. Remittance and collection section deals customers who want to transfer or
collect their money from/to other city.
In the end the learning and the experiences section consist of all the policies,
processes, practices and procedures which I have undergone through and learned
during my internship program.
Table of Contents
Over View of Organization..............................................................................................

Brief History....................................................................................................................
Vision, Mission &Core values.......................................................................................
Business Volume............................................................................................................
Product Line...................................................................................................................
Competitors of NBP......................................................................................................
ORGANIZATIONAL STRUCTURE............................................................................
Organizational Hierarchy Chart.....................................................................................
Branch Structure............................................................................................................
Number of Employees...................................................................................................
Introduction Of all the Departments..............................................................................
Cash Department...........................................................................................................
Remittance Department ...............................................................................................
Clearing Department......................................................................................................
Advance And Credit Department...................................................................................
Government Collection and Disbursment Department.................................................
Sales Department...........................................................................................................
DepositDepartment........................................................................................................
HRM Department..........................................................................................................
Foreign ExchangeDepartment.......................................................................................
Comments on the Organizational Structure ................................................................
Plan of Internship Program............................................................................................
Brief Introduction Of the Branch ..................................................................................
Starting & Ending Date Of Internship...........................................................................
Departments In which I got training..............................................................................
Account Opening Department.......................................................................................
Clearing Department......................................................................................................
Advance And Credit Department ..................................................................................
Remittance Department.................................................................................................
HRM Department .........................................................................................................
Foreign Exchange Department .....................................................................................

Bill & Govt Section ......................................................................................................
Cash Dep artment..........................................................................................................
Deposit Section.............................................................................................................
Training Program .......................................................................................................
Structure Of Finance Department..................................................................................
Financial Analysis..........................................................................................................
Critical Analysis .........................................................................................................
SWOT Analysis.............................................................................................................
Conclusion.....................................................................................................................
Recommendations..........................................................................................................
References ...................................................................................................................
Annexure........................................................................................................................
Overview of the Organization
Brief History
The history of National Bank of Pakistan is part of Pakistans struggle for economic
independence. National Bank of Pakistan was established on November 9, 1949 under
the National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis
conditions which were developed after trade deadlock with India and devaluation of
Indian Rupee in 1949.
The primary objective of NBP was to purchase jute from the growers in the former
East Pakistan and also to perform the commercial banking functions in the country.
NBP maintains its position as Pakistan's Premier Bank with a network of over 1410
branches locally, 23 overseas branches, 9 National and International Subsidiaries and
10 Regional/Representative Offices all over the world. The bank is the higher
financial in agriculture and commodity operation sector. It has diversified its business
portfolio and is today a major lead player in the debt equity market, corporate
investment banking, retail and consumer banking, agricultural financing, treasury
services and is showing growing interest in promoting and developing the country's
small and medium enterprises and at the same time fulfilling its social responsibilities,
as a corporate citizen.
NBP 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 aggressive
and balanced lending policies, technologically oriented branches. It is a semipublic
bank and functions like other commercial banks. Therefore it receives funds from the
depositors and provides loans /credits 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 bank has implemented special credit schemes like small finance for agriculture,
business and industries, administrator to Qarz-e-Hasna loans to students, self-
employment scheme for unemployed persons, public transport scheme. National Bank
of Pakistan is today a progressive, efficient, and customer focused institution. It has
developed a wide range of consumer products, to enhance business and cater to the
different segments of society.
A number of initiatives have been taken, in terms of institutional restructuring,
changes in the field structure, in policies and procedures, in internal control systems
with special emphasis on corporate governance, adoption of Capital Adequacy
Standards under Basel II framework, in the up-gradation of the IT infrastructure and
developing the human resources. National Bank has earned recognition and numerous
awards internationally.
Vision
To be recognized as a leader and a brand synonymous with trust, highest standards of
service quality, international best practices and social responsibility.
Mission
NBP will aspire to the values that make NBP truly the Nations Bank, by:
Institutionalizing a merit and performance culture.
Creating a distinctive brand identity by providing the highest standards of
services
Adopting the best international management practices.
Maximizing stakeholders value.
Discharging our responsibility as a good corporate citizen of Pakistan and
in countries where we operate.
Core Values
Highest standards of Integrity.
Institutionalizing teamwork and performance culture.
Excellence in service.
Advancement of skills for tomorrows challenges.
Awareness of social and community responsibility.
Value creation for all stakeholders
Business Volume
In today's competitive business environment, NBP needed to redefine its role and shed
the public sector bank image, for a modern commercial bank. It has offloaded 23.2
percent share in the stock market, and while it has not been completely privatized like
the other three public sector banks, partial privatization has taken place. It is now
listed on the Karachi/Islamabad/Lahore Stock Exchanges.
Compared to March 2014, deposits have increased by around 12%, while advances
marginally increased by 0.4%. From December 2014, advances have declined by
2.9% mainly due to seasonal adjustments. Mobilizing low cost deposit especially
CASA with major emphasis on increasing current accounts is one of the top focus
areas and we believe that the bank can significantly improve the growth by leveraging
its existing customer base and improving existing products delivery.
The bank is strongly capitalized with capital and reserves of Rs. 166.8 billion, which
translates into break- up value per share of Rs.78/- per share.
Banking sector spreads are expected to remain under pressure. The bank is focusing
on consolidation and recoveries to bring down non-performing loans. Recovery of
overdue payments from PSEs is our major challenge. Our Islamic banking plans to
convert 150 National Bank conventional branches to Islamic banking in next two
years. As part of this plan, 14 conventional branches have successfully been converted
to Islamic Banking Branches till first
Quarter 2015. The bank plans to convert total of 64 more branches to Islamic banking
branches in 2015. Core Banking Application (CBA) rollout in 1,100 plus remaining
NBP branches is under implementation in 2015 to utilize maximum benefit of
automation and facilitating NBP customers with enhanced services. This year we have
converted 180 additional branches on CBA taking total branches on the new platform
at 453. The bank plans to add 1,000 ATMs to its network by 2015, out which 250
ATM project is under implementation and remaining 750 ATMs are planned to be
installed by the end of 2015. The bank has accelerated its efforts to strengthen
compliance culture in the organization. Special emphasis has been placed on
following the regulations on Anti Money Laundering (AML) and Know Your
Customer (KYC).
It has a diversified business portfolio and is today a front end player in the debit
equity market, agriculture financing, corporate investment banking, retail and
customer banking, treasury services and is taking growing interest in developing
countries small and medium enterprises. It is also fulfilling its social responsibilities
of being a corporate citizen.
Asset (current + fixed) US$ 2.7 Billion PKR 164.7 Billion

Loans US$ 1.7 Billion PKR 103.7 Billion
Deposits US$ 2.3 Billion PKR 140.3 Billion
Product Lines
The Bank has expanded its range of products and services to include Shariah
Compliant Islamic Banking products. NBP wide range of product offering, large
branch network and committed workforce are some of its fundamental strengths that
enabled them to achieve exceptional results in a very competitive market.
List is given below:
NBP Choice Current Account
Premium Amdani
Premium Saver
Saibaan
Advance Salary
Cash Card
Investor Advantage
Cash n Gold
Kisan Taqat
Kisan Dost
Pak Remit
In addition to Shariah acceptable standard general banking services, following

services are also being offered at the Islamic Banking Branch:
Letter of Credit Facility

Handling of Remittances
Issuing of Bank Drafts and Pay Orders
Collection of export Bills
Collection of local Bills
Utility Bills Collection
Government Collections
Competitors
List of NBP Competitors is given below:
United Bank
Allied Bank
NIB Bank
Habib Bank
The Bank of Punjab
Muslim Commercial Bank
Meezan Bank
Al-Falah Bank
First Women Bank
Faysal Bank
Askari Bank
Habib Metropolitan Bank
Organizational Structure
Organizational Hierarchy Chart
PRESIDENT
BOARD OF DIRECTORS
SEC. BOARD OF
DIRECTORS
EXECUTIVE
COMMITTEE
SEC. EXECUTIVE
COMMITTEE
SEVP CONST. SEVP ECON. SEVP CORP. SEVP

AFFAIR
& MAINTAIN RESEARCH CREDIT
SEVP LOAN SEVP SEVP INTERN SEVP

DIVISION
COLLECTION EDP TREASURY
SEVP SEVP CAPITAL SEVP

ADMINISTRER MARKET AUDIT
BRANCH STRUCTURE
Manager
Manager Operations
Number of Employees
National Bank of Pakistan is working all over the Pakistan having more than 1410
branches. And the total numbers of employees working in National Bank of Pakistan
are 15,204.
Introduction of all Departments
Cash Department
This department works under the operation department. This department is given the
complete responsibility of cash, as result of transaction in touch local and foreign
currencies. It is also responsibility of the cashier to keep the record of these
transactions and the safe custody of cash. All counters are dealing at the same time in
deposits, withdrawal and online transaction processes. Cash In-Charge is responsible
for any discrepancy in the cash balance. The following books are maintained in this
department:
Receiving cashier books
Token book
Paying cashier book
Scroll books
Cash balance book
Pension payment book
Remittance Department
Remittance is a major function of the bank. It is the transfer of money from one place
to another place without directly involving cash. The money is transferred to both
inside the country and abroad. By providing this service to the customers the NBP
earns a lot of income in the form of EXCHANGE.
NBP deals with the following type of remittances;
Demand draft (DD)
Mail transfer (MT)
Telegraph transfer (TT)
Pay order
Western Union Money Transfer
Clearing Department
Every bank acts as a paying as well as a collecting. It is however an important
function of crossed cheques. A large part of this work is carried out through the
Third Party NIFT. A NIFT is a company who representatives of all the banks of a city
get together and settle the receipts and payments of cheques drawn on each other
bank. Therefore the process by which cheques exchanged between the collecting and
paying and ensuring financial settlement is called clearing. This facility is provided by
the state bank of Pakistan for offsetting of cross obligations between the different
banks. Clearing is of two types:
Inward clearing: Inward clearing means the cheque drawn on NBP
Outward clearing: Outward clearing means the cheques drawn on other banks
Advances and Credit Department

Advances are investment of bank to earn profit; the head office gives loan targets to
each branch that must be achieved for its survival. The manger is responsible to
achieve these targets in the given period.
The function of advances and credit department is to lend money in the form of clean
advances, against the promissory note, as well as secured advances against tangible
and marketable securities. The bank prefers such securities, which do not run risk of
general depreciation due to market fluctuations. Common securities of loans are
Pledge
Mortgage
Hypothecation
Government Collection and Disbursement Department

This department deals with the receipt and payment done by the bank being an agent
of SBP. NBP is the only bank that is working as an agent and its heavy duty of
collecting government receipts like FBR Taxes collection, Traffic Challans, Revenue
Receipts, Agri Tax, Utility bills etc.
Similarly bank is also disbursing money on behalf of SBP. Pension payment is one of
the heaviest functions performed by the bank, along with pension salaries of
government servants. Zakat and tax refunds etc. are also disbursed by NBP Separate
counters have been established at many branches for facilitation of FBR tax
collection.
Advances / Sales Department:

This department deals with provisions of credits and as the main product of bank is
credit so it is also called as sales department or credit department. The bank has
different kind of credit scheme for different kind of target customers. These schemes
are the main products offered by the bank.NBP has a huge product portfolio examples
include Cash Finance, Export Import Financing, House Building Finance (Saiban) &
NBP Karobar Scheme Etc.
Selling is mainly done right at the desk of this department in every branch. Every
region has a business manager which is usually an SEVP of NBP and he is
responsible for managing marketing and selling activities in the region.
Deposit Department
Deposit department deals with the money being deposited in the bank. For depositing
money into bank a customer is required to open his account with the bank. There are
two types of account opened at NBP. That is PLS Saving and Current account. PLS
saving account is mostly used by individuals and account is mostly used by business
man and corporations. Saving account holders are offered profits on their deposits
whereas current account holders enjoy the facility of payment on demand.
Human Resources Management Department
Human Resources Management Department works for the betterment of the

employees. Enhances skills, training management, service benefits, wages, medical
facilities, staff loans are basic functions of this department.
Foreign Exchange Department
This department works like general banking departments with difference that it deals
in foreign currencies US$, POUND STERLING, GERMAN DM and JAPANESE
YEN.
This department deals with the following works:

Foreign currency account
Foreign remittances
Foreign bills for collection
Import
Export
Travelers cheques
Encashment of travelers cheques
L/C Advising
Foreign exchange bearer certificates
Comments on the organizational Structure

The National bank has great contribution towards building wide banking structure in
Pakistan and serving all aspects of the national life and all classes of society. NBP is
fully aware of the developments taking place in the word as well as. The changes
occur in the economic and social condition with in the country. The bank is
determined to meet new challenges by redefining its goal and strategy.
The Chain of Command

The chain of command plays a very important role in National Bank of Pakistan. The
Chain of command helps the employees in problems which they face while they are
performing their duty. In NBP the chain of command means a continuous line of
authority that works from top of the level to the lowest level employees. In chain of
command the top level management gives his order to the lowest level management.
Span of Control
The span of control is the important activity which is performed by the manager of
NBP. The span of control means how many employees the manager can control
efficiently and effectively. This is the important duty of the manager to control the
employees which are working in the bank.
Centralization in NBP
The centralization plays very important role in NBP. This means that at top of an
organization it is the authority and responsibility in the hand of the manager to make
the decision.
Decentralization in NBP
The decentralization also plays very important role in NBP. This means that at the
lowest level of an organization it is the authority and responsibility in the hand of the
manager to make the decision.
Plan of Internship Program
Brief introduction of branch
I did internship in National Bank of Pakistan District Courts Branch, Multan. Its
branch code is 0374 and it includes 59 employees. Mr. Shamim- ul- Hassan is the
branch manager and Mr. Chaudhry Bashir is the operation manager of the branch.
From last many years this branch is not only achieving its targets of deposits and
advances rather it remains above the targets.
Every year the targets of this branch are increasing by 20 to 25 percent but still there
is a potential in the market to meet these additional targets. This branch is performing
its functions in traditional style and now it has been converted into an online branch.
It has so many departments, Bills Department, Deposit section, Credit section,
Foreign Exchange and Clearing Section etc.
The nature of responsibilities of the bank is different and unique from other banks /
Financial Institutions. The bank also handles treasury transaction for the Government
of Pakistan. As an agent to the State Bank of Pakistan for handling provincial /
Federal Government receipts and payments on their behalf. The National Bank of
Pakistan has also played an important role in financing the countries growing trade,
which has expanded through the years as diversification took place. The bank is
providing all bank services of mercantile and commercial banking permissible in the
country.
Starting and ending dates of internship

The duration my internship at the National Bank of Pakistan is starting from 21 June
2016 and ending date is 02 August 2016.
Departments in which I got training
I have got training in the under below Department
Accounting opening Department

Deposit and Cash Section
Bill and Remittance
Credit Section
Govt Section
Foreign Exchange
HR Section
Clearing Department
Account Opening Department

National Bank of Pakistan accepts / collectors deposits from their account holders.
For this purpose account opening from is provided to the potential customers. At the
same time introduction of the customer is done before the manager by existing
account holder or officer of the bank who knows the depositor very well. Manager
takes the depositors signatures on signature specimen card in order to avoid from
discrepancy. Accountant compares the signature of cheque with signatures of the card
before passing the cheque. All the rules and regulation of opening of account can be
changed at any time by the Bank.
Depositor can open following types of accounts with the National Bank of Pakistan: -
Current / Demand Account

PLS (profit and loss scheme) Account
a. Short Notice Term Deposit
b. Long Notice Term Deposit
MIS (Monthly Income Scheme)
The system adopted by NBP to cash the cheque is bit difficult as compare to other
banks in Pakistan. Particularly what I have seen at Main Branch is totally non-
professional behavior. There is no direct coordination between cashier, signature
checking authority and cheque entry person.
Current / Demand Account

From this account depositors can draw amount at any time by presenting the cheque
in the Bank. People deposit their money in this account because there is no restriction
of heavy withdrawals. The Bank neither pays interest nor deducts the Zakat from the
deposits of this account. The Bank also does not take any service charges up to the
minimum balance of account from the depositors. The minimum balance required to
open an account is Rs. 1000/.If the balance declines from the minimum balance then
Bank charges Rs. 100/- as incidental charges. In developed and under developed
countries a very significant part of money is kept under current or demand account. In
NBP normally this account is opened by the businessmen.
Profit & Loss Scheme (PLS) Account
In fact these types of deposits are designed to encourage the saving habits of nation.
The minimum amount requires to open the account is Rs. 1000/-. The account holder
gets the profit at the rate of 5.75% annually expected (subjected to the banks profit)
which is calculated and announced on the half yearly basis. Now the Bank has
introduced the change in this scheme that account holder can draw the required
amount at any time. This deposit carries a small portion of the banks total deposits.
PLS Term Deposit

In this type of account the amount is deposited for a specific period of time then the
profit is given to the customers. Its period may be short (7-days) or long (5-years). So
with the change in time period profit rate varies. That is why NBP term deposits are
divided into two types.
Short Notice Term Deposits

Long Notice Term Deposits
The period of short notice term deposits (SNTD) ranges from 7-days to 30-days or
one month. Its profit rate is 6.3% annually. 29 days to 3 month deposits are also lies in
the scheme of SNTD and its rate of profit is 7.3% annually. The minimum balance
required to open this account is Rs. 10.000/- and there is no maximum limit. Financial
institutions are not allowed in both cases.
While the period of long notice term deposits ranges from 3-months to 5-years
and above and the minimum balance required to open this account is Rs. 10,000/- and
there is no maximum limit. So with the change in the time period of the amount
deposited the rate of profit is also changed. Financial institutions are not allowed in
both cases.
MIS (Monthly Income Scheme)

In this scheme amount is deposited for the five years. The minimum balance required
to open MIS account is Rs. 10, 0000/-. There is no maximum balance but the amount
deposited would be in the multiple of 10,000. The depositor gets the profit at the rate
of 16% annually. As the name of the scheme shows that the depositor gets a fixed
amount monthly for five years.
Individual Account
A person can open account with the Bank in Pak-rupee or in selected foreign
currencies in nominated branches of the National Bank of Pakistan. First of all he has
to fill the account opening form provided by the Bank. Then the introduction of the
account holder is done before the manager. For this purpose he has to provide the
existing account holder of the Bank or officer of Bank as introducer. If the account
holder is illiterate then he provides two photographs to the Bank and thumbprint is
used instead of signature. In order to stop the payment from the account it is necessary
for him to give the instruction to the manager in the black and white. He may get the
statement of account from the Bank according to his own will.
Joint Account
The person can open the joint account in Pak-Rupee or in selected foreign currencies
in the nominated branches of the Bank. A form is given to the person who wants to
open a joint-account in which he provides complete information about the joint
account holder. If any one or both are illiterate then he or they give the photograph to
the Bank and thumbprint. Then the information of the person is done. He also states
about the modes of operation that how the amount will be drawn from the account as
jointly or alone.
Sole proprietorship Account

The person who is the sole owner of the business can open the account with the NBP
by providing the following documents to the Bank officer.
Current municipal license

Commercial registration certificate
Copy of Identity Card etc
The Bank in special doubtful case can get additional documents for proper
verification. The Bank Manager studies the all documents of business if he feels
satisfied then the account of the party is opened with the Bank.
Partnership Firm
The partnership firms can also opened the account with the Bank. But for this they
have to provide the following types of information to the Bank. For this purpose a
form is provided to account holders in which they provide the following information
to the Bank and the person is also nominated who can draw the amount from the
Bank.
Name of firm
Name of partners
Identity cards of partners
Registration of certificate of the firms with the authorities
Photograph of partners in case of illiterate and thumbprint
Limited Company
In order to open the account of the company the following documents are required by
the Bank so that the Bank would take action in case of any Fraud or discrepancy.
Memorandum of Association
Memorandum of Article
Most recent Balance Sheet and Profit and Loss Statement
Resolution of Board of Directors about the person who is authorized to

sign the cheques.
Any other document
Minimum Balance
Current Account
In order to the open a current account with the Bank the required minimum
balance is Rs. 1000/-. If the balance is reduced from Rs. 1000 then after six month
Bank charges Rs. 100 as incidental charges.
PLS Account
For opening of PLS account the minimum balance required is Rs. 1000. Profit rate of
this account is 5.75% annually expected (subjected to the banks profit).
PLS Term Deposit

The minimum balance required for this type of deposit is Rs. 10,000/- and rate of
profit varies according to time period.
Monthly Income Scheme (MIS)

For this scheme required minimum balance is Rs. 10,000. There is no maximum limit
but the deposited amount should be in multiple of 10,000.
Account Opening Procedure
Requirements for opening an account are

A copy of ID card of both introducer & customer
Original cards for verification
If customer use thumb impression then customer must gives a written
statement on PLS form that i do not observe parda
Next to kin, the customer must clear that who is responsible for the account in
his absence
Customer must be appearing at the time of account opening
In case of current account

For partnership firm account, a copy of partnership deed & article of
association is required.
For corporation account, a copy of memorandum of association is required.
All the executives of the firm must be present at the time of account opening
A copy of registration of the firm
Number of partners and who will operate the account must be cleared
Procedure of account opening in NBP

Customer fill the application form called CAOP(centralized account opening
procedure) for account opening
Banker takes customers signature on specimen card and keeps it in record
A letter of thanks on form should be sent to new account holder under
certificate of posting
When customer comes with that letter of thanks then cheque book and pass book is
issued to that customer.
Issuance of cheque book

When a customer opens an account with bank, he/she is provided with cheque book
for withdrawals of account; however, the first cheque book is given to the customer
only when all the require documents are checked. A cheque book contains twenty
five, fifty and hundred leaves. The cheque book also carries a requisition slip for the
issuance of new cheque book. This slip is duly filled and signed 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 and address. Usually
only one cheque book is issued at a time. The assistant writes the following
information on the title page of the cheque book and cheque book issuance register;
Issuance date
Name of account holder
Account number
Type of account
After authentication by authorized officer on the cheque book register, the cheque
book is handed over account holder.
Closing of Account
There are many reasons for closing and inoperative of account. It is not a good
indication for the business of the bank. Some of the more common reason reasons are
as follow:
Account holders request
Death of the account holder
Bankruptcy of the account holder
If account is not used for the 6 months then the account will become
inoperative
Insanity of the account holder
Before closing an account the bank sends a letter to the account holder that his/her
account will be closed.
Clearing Department
Every bank acts as a paying as well as a collecting. It is however an important
function of crossed cheques. A large part of this work is carried out through the
Third part NIFT. A NIFT is a company who representatives of all the banks of a city
get together and settle the receipts and payments of cheques drawn on each other
bank. Therefore the process by which cheques exchanged between the collecting and
paying and ensuring financial settlement is called clearing. This facility is provided by
the state bank of Pakistan for offsetting of cross obligations between the different
banks. Clearing is of two types:
Inward clearing: Inward clearing means the cheque drawn on NBP
Outward clearing: outward clearing means the Cheques drawn on other banks
Advances and Credit Department:
Advances are investment of bank to earn profit; the head office gives loan targets to
each branch that must be achieved for its survival. The manger is responsible to
achieve these targets in the given period.
The function of advances and credit department is to lend money in the form of clean
advances, against the promissory note, as well as secured advances against tangible
and marketable securities. The bank prefers such securities, which do not run risk of
general depreciation due to market fluctuations. Common securities of loans are
Pledge
Mortgage
Hypothecation
These are define as follow
Pledge
In pledge the bank has 90% shares in business of the borrower. The bank has a right to
sold the production and interfere in business transactions. In this type of security bank
pledge the stock and raw material. The stock must be insured. Stock is controlled and
managed by the bank; borrower cannot use raw material and also cannot sell its
production without the presence and permission of the agent of the bank.
Mortgage
All documents of ownership and registration of movable property is submitted to the
bank with an authority letter which has an agreement to give authority of selling
property in case when borrower will not repay the loan after fixed period.
Hypothecation
In this type of security, the immovable property is pledged by the bank is required a
real value of that property or sanctioning a loan. Margin for this security is 50%. In
hypothecation the bank does not interfere in the business of borrower.
Funds based Financing

The types of financing in which the funds of bank are directly involved is called funds
based financing, these are
Running finance
Cash finance
Demand finance
Demand finance to staff
Demand finance to gold
Demand finance to agricultural
These are describe as
Running Finance
This finance is only a secured finance which is sanctioned against movable security
that is easily convertible into cash e.g. security bonds, Govt. Certificates and bonds
etc.
Cash Finance
The bank gives this loan to the customer and businessmen against certain specified
immovable property. It is issued for establishment and extension of industry.
Demand Finance
This loan is given against movable property or may be given against personal
guarantee.
Demand finance is further divided into three types are
Staff Finance
This finance is given to the employees of NBP for improving their living standard e.g.
for purchasing a motorcycle, car, house building, computer etc. There is no mark-up
on this loan except on car and computer.
Gold Finance
It is sanctioned for the period of 11 months by pledging gold ornaments.
Agriculture Finance (seasonal finance)

It is given for supporting seasonal crops like Rabi and Kharif. It is sanctioned for
six month only at high mark-up rate.
Remittance Department
Remittance is a major function of the bank. It is the transfer of money from one place
to another place without directly involving cash. By providing this service to the
customers the NBP earns a lot of income in the form of EXCHANG.
NBP deals with the following type of remittances;
Demand draft (DD)
Mail transfer (MT)
Telegraph transfer (TT)
Pay order
Demand Draft (DD)

Demand draft is a written order given by the one branch of abank on behalf of
customer to another branch outside the city of the same bank for a certain amount to
the certain person. It is unconditional order, the payee is not bound to have an account
in the bank. It is issued on the request of the customer and bank receives the charges
and exchange. Exchange rate is based on the amount of the instrument.
Mail Transfer (MT)

It is the transfer of money from one branch to another branch of the same bank
through mail service. In mail transfer t, it is necessary for the both parties to have
accounts in the same bank.
Telegraphic Transfer (TT)

This is the most urgent method of remitting the money from one place to another
place. This method is used when the sender desires to send money urgently, in this
case sender request the manager of the branch to issue TT.
Pay order (PO)

A pay order is a written order issued by the bank on its own branch, drawn upon and
payable by itself to pay a specified sum of money to the person. The purpose of a pay
order is to transfer the fund from one place to another place. It is usually not issued in
favour of the parties of other cities. Usually the pay order is issued for the local
transfer of money between two parties. Every purchase of bank is paid through
payment order voucher e.g., expenses of the bank.
Human Resources Management Department
Human Resources Management Department works for the betterment of the

employees. Enhances skills, training management, service benefits, wages, medical
facilities, staff loans are basic functions of this department.
Foreign Exchange Department
This department works like general banking departments with difference that it deals
in foreign currencies US$, POUND STERLING, GERMAN DM and JAPANESE
YEN.
This department deals with the following works:
Foreign currency account
Foreign remittances
Foreign bills for collection
Import
Export
Travelers cheques
Encashment of travelers cheques
L/C Advising
Foreign exchange bearer certificates
Bill and Govt Section

It includes utility bills section, federal & Provincial Taxes section, disbursement of
pension etc.
Utility Bills
The bank accepts the following types of the bills:
Electricity bills
Telephone bills
Sui-gass bills
Federal & provincial Taxes
NBP collects federal and provincial taxes from the general public. These taxes
include:
Income tax
Central excise tax
Sales tax
Provincial excise duty
Provincial Motors duty
Professionals tax
Provincial property tax
Chalan fees
Court fines
Passport fees
Disbursement of pension
National Bank of Pakistan is fully authorized to disburse the pension to the
government and army retired personnel.
Cash Department
This department works under the operation department. This department is given the
complete responsibility of cash, as result of transaction in touch local and foreign
currencies. It is also responsibility of the cashier to keep the record of these

transactions and the safe custody of cash. All counters are dealing at the same time in
deposits, withdrawal and online transaction processes. The following books are
maintained in this department:
Receiving cashier books
Token book
Paying cashier book
Scroll books
Cash balance book
Pension payment book
When cash is received in counter, it is entered in scroll book and receiving cashier
book. When the cheque or any negotiable instrument is presented at counter for
payment, it is entered in the token book and token is issued to the customer. The token
and the cashier make entry in the payment book and are made to payee. At the close
of the day, these all books are balanced. The consolidated figure of receipt and
payment of cash is entered in the balance book and drawn closing balance of cash.
This is very important department because cash is the most liquid asset and mostly
frauds are made in this department, therefore, extra care is taken in this department
and no one can allowed to enter or leave the area freely. Mostly cash area is covered
with glass and officer checks the books maintained in this department.
Deposit Section
Deposits to the bank are the backbone to the body of humans it is life blood of a bank.
The bank borrows money from general public by accepting an offering suitable rate of
lit on them, or simply promise to repay on demand.
When the bank receives deposits, it becomes the debt and clients assume the position
of creditor.
In NBP they maintain thrust in on customer satisfaction. The banks provides many
opportunities to place the funds in maintaining of deposit accounts including foreign
currency deposit accounts and offer a wide range of facilities and services to suitable
for personal as well as domestic and foreign business requirements of its customers.
All types of accounts of customers are managed and maintained in this section. All the
money deposited and withdrawn is properly recorded in each specific account
number.
Depositing of Amount
Account holder can deposit the amount in cash or transfer his account through credit
voucher. In NBP two types of vouchers are used for this purpose
Blue voucher which is used for cash receipts
Pink voucher which is used for all non-cash receipts like drafts, cheques,
payment orders etc.
Dishonor of cheque
When a bank refuses to make payment of his customers cheque that is duly presented
at the counter of the bank, the cheque is said to be dishonor. Following are main
reasons for dishonoring of a cheque;
Amounts inwards and figures are differ
Payment stopped by the drawer
Drawers signature differs
Cheque is post dated
Training Programs
Training Departments
There are so many departments of National Bank in which I got Training:
Task Assigned To Me In Account Opening Department

In account opening department I worked for one week. Opening of account is the
primary duty of department. In account opening department of the bank I have learnt
how an account is being opened and which documents are required to open an
account. There are two types of accounts which I learnt to opened single account &
joint account. As I see during my internship when a customer wants to open an
account, first step is to fill an application form. Customers who want to open an
account provide all necessary information, which is required to open a bank account is
written on the form. I practically filled applicant forms and learnt that how the letter
of thanks is attached with the form and send to the customers. The customer will get
the cheque book when he/she will receive the letter of thanks from Bank.
Task Assigned To Me In Clearing Department

In clearing department I worked for one week. The task was entrusted to me to collect
cheques from local branches, which is being sent by commercial banks to collect the
amounts of checks drawn against members of the local clearing house. I learned that
the clearing procedure is about 3 days to complete. During my stay in the clearing
department I have been collecting cheques from general public and other clients of
NBP and send to NIFT which perform the services of clearing house. I learnt the
procedure of issuing of new cheque book and predicted.The difference between
cheques of current and saving account. By performing duties in clearing department
my concepts about clearing department is very much and Operation manager
appreciated for doing so efficiently.
Task Assigned To Me In Credit/Advance Department
In Credit/Advance department I worked for one week and the task assigned to me are
very important because the credit department is the back bone of the bank in term of
profit all types of advances are given in this department Prime Minister Youth loan
Scheme forms are available in this department I filled the form of this scheme on the
behalf of customers I also did the Nadra verification of the customers and print out the
verification form .I also provide the forms of Advance salary loan and necessary
information about the loan to the employees of the government .
Task Assigned To Me In Bill and Govt Department
In Deposit department I worked for one week. Task assigned to me in bills department
was very important. I collected the utility bills from the general public and at the end
of the day all the bills are deposited in the bank accounts of the respective department.
Task Assigned To Me In Foreign Exchange and HR Section
In Foreign exchange and HR department I worked for one week. Task assigned to me
in foreign exchange department was very important. I collected the (FET) form which
means that Foreign Exchange Transaction form which is used to carry out the
transaction this form include the all necessary information of both importer and
exporter parties .Nastro & vastro accounts are managed in this department .In Hr
Section I learned about Hiring procedure of employee.
Task Assigned To Me In Cash and deposit Department
In Cash Department I worked for one week. In this department I learned the
procedure to pass the cheque. For this purpose I learned to verify the specimen
signature card that is available on the website. Then cash can be withdrawn from the
account. I also learned to receive college fees, credit card bills and the installment of
the car financed by the Punjab government. I also learned to make deposit slip and
then posted the cash in the account after receiving the deposit slip and cash from the
customer.
Detailed description of the tasks assigned to me

I got training in different departments in National Bank of Pakistan in District Court
Branch Multan. I complete my training in 6 weeks. There were different task which were
assigned to me in these departments the mostly in NBP departments work on these
departments in which I got training and which are very necessary for banking training.
Complete detail of all those departments is mentioned above.
Structure of the Finance Department
Department hierarchy
NUMBERS OF EMPLOYEES
There are 3 employees are working in the organization for Finance department. These
all of members are very competitive and well trained. They also knew the customers
needs and wants. And they also knew how to handle these problems and new
environment.
Finance & accounting operations

Every branch has its own accounts department which is responsible to record and process
each and every business transaction taking place during the working day. This department
consolidates the position of the branch at the day end in the shape of assets, liabilities,
revenues and expenses.
This position is daily send to the finance department of head office which consolidates all
these statements of affairs bank wise. This position is sent to SBP publishes on weekly
basis overall consolidate statement of banks in business news papers like business
recorder.
The main function of finance department of head office is to maintain smooth liquidity if
bank by arranging funds from SBP and other banks if required. This department is also
responsible for making physical investment on behalf of bank into government securities
and other corporate securities.
Finance and Accounting operations are operated with the help of subordinate staff.
Bank is financing in multiple sectors. National Bank of Pakistan is a financial
institution. It has proper setup of operation of all of its accounts and finance activities.
Role of Chief Financial Officer

Corporate & Finance Group Chief is Chief Financial Officer of NBP. He has
following main functions and responsibilities as CFO.
Monitoring and Maintaining Liquidity of Cash

Finance group is responsible to get information of the cash requirement and usage in
all branches of NBP. It gathers data from Operation group to assess the cash in
position of the bank. CFO continuously monitors the changing cash requirements of
the bank. Lower cash reserves are not only makes the payments of account holder late
but also may be charged by penalties by SBP if it falls below the limit given by SBP.
Excessive cash in hand is also harmful for the bank as non-productive cash bears the
cost of funds.
Below mentioned finance and accounting operations are operations are followed in
NBP:
Maintenance of books of accounts and preparation of financial statements of
the Bank in accordance with the IAS, as adopted by the Bank.
Coordination and facilitation for budgeting function in the Bank and periodic
reporting to the management and to the Board of Directors.
Management of Federal, Provincial, and District Governments Accounts.
Policy & operations related coordination with MOF, CBR, AGPR, and other
Govt. agencies.
Maintenance of foreign currency accounts/ investments and execution of International

payments and receipts.
Functions of the Finance Department

Finance Department performs following functions.
Borrowing from State Bank of Pakistan.
Lending to Commercial Banks
Lending to Investors.
Lending to General Public for multi-business.
Accounting system of the organization

Accounting system of the bank especially where I done internship is very bad due to
non-availability of Information Technology trained staff which is most requirement of
the bank. Bank use manually accounting system during its operational activities.
Finance system of the organization

Financial system of the bank where I done my internship is mixed and complicated
because being government bank, bank deals with all kind of lending and investing
activities and also hold down the cash position of others financial institutions i.e.
banks like MCB, UBL, ABL etc.
Commercial and Corporate customers requiring financing will have the following
financing facilities available to them to meet their requirements:
Murabaha
Murabaha may be defined as a contract between a Buyer and Seller under which
the Seller discloses to the Buyer the cost of goods being sold and adds an agreed
profit. Price is payable on spot or at a certain future date, in lump sum or in
installments (deferred payments).
Murabaha Facility
Under the Murabaha facility, the Bank will first purchase the required goods
directly or through an Agent. All costs incurred on such purchases will be borne
by the Bank.
Subsequently the Bank will sell the goods to the customer on deferred payment
basis (30 days to one year) at an agreed price comprising cost of goods purchased
and Bank's profit.
On due date the customer will pay to the Bank the agreed price, in lump sum or
as per the agreed installment schedule.
Ijara (Leasing)
Ijarah means to give something on rent. The term IJARAH is analogous to the
English term leasing.
Firstly the Bank will purchase the Assets as required by the Customer and
subsequently the assets will be leased to the Customer on the terms and
conditions as agreed with him.
Ijarah Facility will be offered for the following assets
Ijara (Leasing)
Ijarah means to give something on rent. The term IJARAH is analogous to the
English term leasing.
Firstly the Bank will purchase the Assets as required by the Customer and
subsequently the assets will be leased to the Customer on the terms and
conditions as agreed with him.
Vehicles (both Commercial and Private)

Office Equipment
Plant and Machinery

Use of electronic data in decision-making
In today baking new devices has been introduced for efficient and courteous service to
the client like online banking, Net Banking, Mobile Banking, Auto Teller Machines
(ATMS) and electronic cashier
In NBP most of the decisions are made after getting approval from authority using
electronic data. Now a days statement of accounts are not dispatched to the account
holders instead they have been given option to get their statements printed while using
net banking.
More over customers gave all types of instructions in respect of their transactions
through e-mails, net & mobile banking, so we can say that electronic data is very
widely used in todays banking.
Mobilization of funds
The branch where I have got training, is mobilizing his fund through lending or
receiving only. Branch provides various kinds of lending facilities all kind of as stated
above in product line. The NBP has implemented special credit schemes like small
finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans
to students, self-employment scheme for unemployed persons, public transport
scheme.
Generation of funds
Fund generation of the branch is depositing, receiving interest on lending money to

various sectors, advances from other financial institutions.
Sources of funds
Fund generation of the branch is depositing, receiving interest on lending money to
various sectors, advances from other financial institutions. Funds based on the
following:
Corporate leasing- Machinery & equipment
Auto Leasing- Commercial & Personal Vehicles
Operating Lease
Investment in corporate bonds / TFCS / Government Securities (PIBSS T
Bills etc.)
Investment in income / stock funds offered by asset management companies
AMCs
treasury Operations, Fund Placements and resource mobilization
Allocation of funds
Bank allocates funds according to the instructions of the high command. The bank
however has increased its investment in higher yielding Pakistan Investment Bonds
which helped in improving the net interest income.
Financial analysis
Ratio Analysis
Liquidity Ratio
2014 2015
Current Ratio 1.41 1.55
Cash Ratio 2.02 2.4
Net Working Capital to 1.45 1.39
Sales
Total Asset Turnover 0.10 0.99
Debt Ratio 1.13 1.05
Debt to Equity Ratio 8.76 times 9.20 times
Profitability Ratios
Gross Profit Margin 40.9% 47.54%
Operating Profit Margin 19.7% 21.7%
Net Profit Margin 13.94% 17.55%
Return on Total Assets 1% 1.2%
Return on Equity 14.3% 17%
Marketability Ratios
Rs.10.44 Rs. 10.47
Earnings per Share
Rs. 79.13 Rs. 83.82
Book Value per Share
Interpretation of Liquidity Ratio

Current ratio of the NBP has increased from the year 2014 to 2015 due to
increase the cash equivalent (cash with other banks).
NBP is maintaining a healthy cash ration from the year 2014 to year 2015.
Working capital has generated greater sales in the year 2014 than in the year
2015.
Debt ratio has decreased because the assets have increased in comparison with
total debt facility availed by the NBP.
Debt to equity ratio has increased due long term debts availed by the NBP, this
shows that NBP is using outside creditor money for generating profits and
decreasing its own risk, and this decrease in risk has increasing its net worth.
Interpretation of profitability Ratio

NBP is maintaining a healthy profit ratio for its customers during the years.
During the year 2015 the net profit ratio has increased due to the amount write
off on account of many schemes and the expenses have also decreased to
collect the remaining installments of the Rickshaw schemes and mobile utility
stores and etc that were stated by the government to support the illiterate
people to earn their livings.
Return on assets shows how profitable a company is relative to its total
assets. ROA gives an idea as to how efficient management is at using its assets
to generate earnings. Calculated by dividing a company's annual earnings by
its total assets, ROA is displayed as a percentage. If NBP invests one rupee
then the return was in 2014 (1%) and in 2015 (1.2%).
Return on equity shows the amount of net income returned as a percentage of
shareholders equity. Return on equity measures a corporation's profitability by
revealing how much profit a company generates with the money shareholders
have invested. In the year 2014, the shareholders earned 14.3. % against one
rupee invested and in the year 2015, they received 17%.
Interpretation of profitability Ratio
Earnings per share have increased from 2014 to 2015 by Rs. 0.03 rupees, and the
book value of the share has also increased by the amount Rs. 4.69 Book value of
represents the amount that if the NBP is liquidated today how much the shareholders
will get against each share.
Horizontal analysis of Balance sheet

BASE YEAR = 2014
FORMULA = (YEAR/BASE YEAR) X 100
Currency: In thousands of Pakistan Rupees
2014 2015 Percentage

Assets
Cash balance 98,246,783 151190845 153.8%
with treasury
banks
Cash balance 12,543,964 20,639,421 164.53%
with other
banks
Lending to 111,794,127 10638,524 9.5%
financial
Institution
Investments 561,767,518 826,246,755 147%
Advances 630,229,649 580,093,986 92%
Operating fixed 33,353,526 33,300,674 99.84%
Assets
Deffered Tax 9,884,256 9,672,251 97.85%
Assets
Other Assets 91,839,258 80,091,712 87.20%
Total Assets 1,549,659,081 1,711,874,168 110%
Liabilities
Bills Payable 11,011,827 9,171,616 83.28%%
Borrowings 38,208,413 22,384,853 58.58%
Deposits and 1,234,405,050 1,431,535,397 115.96%
other accounts
1,691 91,188 5392.5%
Loans subject
to finance lease
83,439,108 77,036,022 92.32%
Other liabilities
Total 1,367,066,089 1,540,219,,076 112.66%
Net Assets 182,592,992 171,655,092 94%
Share capital 21,275,131 21,275,131 100%
Reserves 32,996,496 45,202,342 137%
Unappropriate 59,751,578 52,724,525 88.23%
Profit
Non controlling 717,017 721,816 101%
intrest
Total 114,740,222 119,923,814 104.5%

Surplus on 67,852,770 51,731,278 76.24%
Revaluation
Net Capital 182,592,992 171,655,092 94%
and Liabilities
Horizontal analysis of Income Statement

Currency: In Thousands of Pakistan Rupees
2014 2015 Percentage
Mark up earned 115,251,748 114,386,364 99.24%
Mark up expense (68,461,921) (59,999,374) 87.63%

Net Mark up income 46,789,827 54,386,990 116.23%
Provisions against 11,083,973 10,863,528 98%
non performing
advances
Provision for (1,441,758) (796,300) 55.23%
diminution in value of
investment
Provision against of (339,200) (122686) 36.16%
balance
Total Provisions 9303015 9,944,542 106.89%
Net Income 37,486,812 44,442,448 118.55%
Non mark up
income
Fee, commission and 12,931,130 13,460,415 104.09%

brokerage
Dividend income 2,076,669 2,706,794 130.34%
Income dealing in 3,640,889 4,794,070 131.67%

foreign currencies
Unrealized loss gain 8,660,224 12,282,801 141.83%

on revaluation
Investment classified
as hold for trading 145,454 5,924 4.07%
Share of profit from 301,989 560,031 185.44%
(JV)
Share of loss (1,060,287) (922,747) 87.02%
Other income 3,608,540 2,111,119 58.50%
Total non mark up 30,304,608 34,998,407 115.48%

income
Total 67,791,420 79,440,855 117.18%
Expenses
Admin expenses 41,518,462 43,720,204 105.30%
Write offs 1,400,434 1,474,345 105.27%
Other charges 1,736,674 73,749 4.24%
Total non mark up 44,655,570 45,268,298 101.37%
expenses
Profit before taxation 23,135,850 34,172,557 147.70%
Tax- Current 9,569,928 14,672,221 153.31%
Prior years (4204) 2,298,465 54673.28%
Deferred (2,501,058) (2,874,712) 114.93%
Tax Adjustment 7,064,666 14,095,974 199.52%
Profit after Tax 16,071,184 20,076,583 124.92%
.
Vertical analysis of Balance Sheet

Currency: In thousands of Pakistan Rupees
Assets 2014 2015 2014 2015
Cash balance 98,246,783 151190845 6.33% 8.83%
with treasury
banks
Cash balance 12,543,964 20,639,421 0.80% 1.20%
with other
banks
Lending to 111,794,127 10638,524 7.2% 0.62%
financial
Institution
Investments 561,767,518 826,246,755 36.25% 48.26%
Advances 630,229,649 580,093,986 40.66% 33.88%
Operating fixed 33,353,526 33,300,674 2.15% 1.94%
Assets
Deffered Tax 9,884,256 9,672,251 0.63% 0.56%
Assets
Other Assets 91,839,258 80,091,712 5.92% 4.67%
Total Assets 1,549,659,081 1,711,874,168 100% 100%
Liabilities
Bills Payable 11,011,827 9,171,616 0.71% 0.53%
Borrowings 38,208,413 22,384,853 2.46% 1.30%
Deposits and 1,234,405,050 1,431,535,397 79.65% 83.62%
other accounts
83,439,108 77,036,022 5.38% 4.50%
Other liabilities
Total 1,367,066,089 1,540,219,,076 88.21% 89.97%
Net Assets 182,592,992 171,655,092 11.78% 10.02%
Share capital 21,275,131 21,275,131 1.37% 1.24%
Reserves 32,996,496 45,202,342 2.12% 2.64%
Unappropriate 59,751,578 52,724,525 3.85% 3.07%
Profit
Total 114,740,222 119,923,814 7.40% 7%

Surplus on 67,852,770 51,731,278 4.37% 3.02%
Revaluation
Net Capital 182,592,992 171,655,092 11.78 10.02%
and Liabilities
Vertical analysis of Income Statement
Currency: In Thousands of Pakistan Rupees
2014 2015 2014 2015

Mark up earned 115,251,748 114,386,364 100% 100%
Mark up expense (68,461,921) (59,999,374) (59.40%) (52.45%)
Mark up income 46,789,827 54,386,990 40.59% 47.54%
Provisions against 11,083,973 10,863,528 9.61% 9.49%
non performing
advances
Provision for (1,441,758) (796,300) 1.25% 0.69%
diminution in value of
investment
Provision against of (339,200) (122,686) 0.29% 0.10%
balance
(1780958) (918986) (1.54.%) (0.80%)
Net Mark up 9,303,015 9,944,542 8.07% 8.69%
Income
Non mark up
income
Fee, commission and 12,931,130 13,460,415 11.21% 11.76%
brokerage
Dividend income 2,076,669 2,706,794 1.80% 2.36%
Income dealing 3,640,889 4,794,070 3.15% 4.19%
In foreign currencies
Unrealized loss gain 8,660,224 12,282,801 7.51% 10.73%)
on revaluation
Investment classified 145,454 5,924 0.12% 0.0410%
for trading
Share of profit from 301989 560,031 0.26% 0.48%
(JV)
Share in loss from (1,060,287) (922747) 0.91% 0.80%
(JV)
Other income 3,608,540 2,111,119 3.13% 1.84%
Total non mark up 30,304,608 34,998,407 26.29% 30.59%

income
Total 67,791,420 79,440,855 58.82% 69.44%
Expenses
Admin expenses 41,518,462 43,720,204 36.02% 38.22%
Write offs 1,400,434 1,474,345 1.21% 1.28%
Other charges 1,736,674 73,749 1.50% 0.06%
Total non mark up 44,655,570 45,268,298 38.74% 39.57%
expenses
Profit before 23,135,850 34,172,557 20.07% 29.87%
Taxation
Tax- Current 9,569,928 14,672,221 8.30% 12.82%
Prior years (4204) 2,298,465 (0.036%) 2%
Deferred (2,501,058) (2,874,712) (2.17%) (2.51%)
Total Tax 7,064,666 14,095,974 (6.12%) (12.32%)
Adjustment
Profit after Tax 16,071,184 20,076,583 13.94% 17.55%
Critical Analysis
During the internship I got practical experience that does not meet the theoretical
concepts in BBA Program. I present here some critical analysis:
Long Process of Transaction: There are long processes for making a
transaction in the Bank. Especially, during the salary days of Government
employees, a customer needs one or two hours to withdrawal his/her cheque.
Training: NBP has no great facility for their employees for training of new
technologies. This situation creates difficulty for handling new challenge.
Departmentalization: I saw many separate departments in the branch where I
have got internship. Every employee perform its own function
Staff Attitude: Staff attitude was very ideal in the main branch of NBP
(Multan).All the employees were very co- operative and they supported me in
the completion of my internship
Work Environment: Work environment was not ideal due to heavy customers
visit in a single day. Furniture, temperature, light and sitting arrangement was
not good for customers and bank employees.
Professional Approach: Work specialization and job specification are found
very low in banks employees. Business administration qualities and education
is at low side.
Shortage of Staff: There is shortage of staff in the Bank. Number of customer
per employee is very high. Cash department is suffering very badly and facing
great deal of over workload.
Less use of Technologies: Staff hesitates to use new technologies. Even old
employees are not able to operate PCs.
Communication Gap: I feel that there is communication gap between top
management and workers. They have fewer chances to communicate
effectively.
Not Focusing on Mission and Objectives: Employees just work and work hard
as a routine. They do not know what the mission ahead is and their objectives
are also not crystal clear.
Unjustified Appraisal Criteria: No justified appraisal criteria are implemented
for annual increase in salary and promotion of staff. It creates un-satisfaction
among the employees of the Bank.
SWOT ANALYSIS
SWOT analysis is stands for strengths, weakness, opportunities, and threats. SWOT
analysis is careful evaluation of an organizations internal strengths and weakness as
well as its environment opportunities and threats. In SWOT analysis the best
strategies accomplish an organizations mission by:
1. Exploiting an organizations opportunities and strength.
2. Neutralizing it threats.
3. Avoiding or correcting its weakness.
SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context, managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to then
develop good strategies and exploit opportunities and strengths neutralize threats and
avoid weaknesses.
Strengths
NBP in one of the oldest bank of Pakistan and first nationalized bank Hence
its customer base is strength from this plus point as customers have more
confidence in the bank. The additional value services as the privilege for the
bank.
Only NBP is authorized to advance loan against gold. This function makes the
NBP able to earn profit on the gld. This function becomes the major source of
income of NBP.
When Govt. Starts any new scheme of loan to assist the public, then normally
NBP is authorized to implement it. It is provided with the funds from the
Govt. To advance this loan to public, it earns profit on it which increases its
overall income.
NBP has the relative competence in having more deposits than the other bank.
This is because of the confidence the customer have in the bank. The bank
being the privileged and oldest bank in banking sector of Pakistan enjoys this
edge over all others, lacking it.
Weaknesses
The strong political hold of some parties and government and their dominance
is affecting the bank in a negative way. They sometime have to provide loan
under the pressure, which leads to uneven and adjusted feeling in the bank
employees.
The promotions and bonuses etc in the bank are often powered by seniors
favoritism or depends upon their wills and decision. This adds to the negative
factors, which denominate the employees thus resulting in affecting their
performance negatively.
During the rush hours, the bank is founded out to be a total flop to handle the
mob of people peaking from windows and doors. The bank has deficiency to
operate in the stages of rush hours where the people find them services
entangled in a situation of nowhere because they are not well served.
The bank lack the strength of being powered by the network of computers,
which have saved time, energy and would have lessened the mental stress, the
employees have currently. This would add to the strength if it were powered
by network of computers.
Opportunities
The world today has become a global village because of advancement in the
technologies, especially in communication sector. More emphasis is now
given to avail the modern technologies to better the performances. NBP can
utilize the electronic banking opportunity to ensure on line banking 24 hours a
day. This would give a competitive edge over others.
Being a Government Bank NBP having wide scope in economic market
Banks deposit is increasing rapidly so there is a great opportunity to enhance
its investment and financing.
Proper advertising of the products of the bank.
Threats
The bank is facing threats with the emergence of new competitors especially
in terms of foreign banks. These foreign banks are equipped with heavy
financial power with excellent and innovative ways of promoting and
performing their services. The bank has to take initiative in this regard or will
find itself far back in competition.
The ongoing shift in power in political arena in the country effects the
performance of the bank has to forward loans to politically powerful persons
which create a sense of insecurity and demoralization in the customer as well.
High number of complaints regarding staff behavior, and there exists no

regular and specific system of the removal of customer complaints. Now a day
a need for total customer satisfaction is emerging and in their demanding
consequences customer's complaints are ignored.
Conclusion
According to the reports facts and figures, it can be conclude that the NBP is a
financially sound bank. Its profits are increasing year by year. Under the leadership of
higher management NBP has made significant progress in building and strengthening
both the corporate and retail banking sectors in Pakistan. The bank attained a very
good position in terms of its balance sheet size amongst the private banks in Pakistan.
Revenues from these activities have started yielding dividends and can be expect
significant growth in these areas in the coming years.
Recommendations
Upper management should take decisions for promotion of employees on the

basis of professional justice.
Along with the officers, the training must be given to the clerical staff, because
NBP are running on mutual system and the training of its staff directly
improving their efficiency of work.
Bank should launch advertising campaigns throughout the year to promote the
habits of savings among the people. Bank should open more branches in the
remote areas of the country to get deposits and idle resources. Bank should
provide similar facilities to all its branches in big cities. The standard of
service and other facilities are far better as compared to smaller cities.
The bank should spend more on renovation of the branches to improve
environment and atmosphere to attract the customers.
Sitting arrangement, air conditioning and new furniture should be facilitated
The Bank should introduce the computers software to cope the heavy load of
work and better control.
Extra counters should be established in order to facilitate during the rush days
the difficulties faced by the bank staff as well as the customers.
All Branches of the Bank must be online.
Bank can increase its profit ratio by reducing extra expenditures and to
enhance the volume of advanced especially retail loans.
I done internship, I recommend that security level in the bank should be

enhanced especially where I got internship and operation of Mobile phones
must not be allowed inside the Bank.
The Bank should increase profit rate on deposits and saving schemes
especially for pensioners and old age citizens.
For collection of utility bills i.e. Electricity bills, Telephone bills, Water and
Gas bills separate cash receipt counter must be established.
References
I took help from the Bank Staff and following sources:
Website of NBP: www.nbp.com.pk
www.google.com.pk
www.wikipedia.com
www.investopedia.com
Annexure

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National Bank of Pakistan

INTERNSHIP CERTIFICATE SCAN COPY

My Parents and Teachers

This report is about my internship program in NBP In this comprehensive report, I

Over View of Organization..............................................................................................

Foreign Exchange Department .....................................................................................

Overview of the Organization

Asset (current + fixed) US$ 2.7 Billion PKR 164.7 Billion

In addition to Shariah acceptable standard general banking services, following

Letter of Credit Facility

Issuing of Bank Drafts and Pay Orders

Collection of export Bills

Collection of local Bills

Utility Bills Collection

List of NBP Competitors is given below:

The Bank of Punjab

Muslim Commercial Bank

First Women Bank

Habib Metropolitan Bank

Organizational Hierarchy Chart

SEVP CONST. SEVP ECON. SEVP CORP. SEVP

SEVP LOAN SEVP SEVP INTERN SEVP

SEVP SEVP CAPITAL SEVP

Introduction of all Departments

Advances and Credit Department

Government Collection and Disbursement Department

Advances / Sales Department:

Human Resources Management Department

Human Resources Management Department works for the betterment of the

Foreign Exchange Department

This department deals with the following works:

Comments on the organizational Structure

The Chain of Command

Plan of Internship Program

Brief introduction of branch

Starting and ending dates of internship

Departments in which I got training

I have got training in the under below Department

Accounting opening Department

Bill and Remittance

Account Opening Department

Current / Demand Account

Current / Demand Account

Profit & Loss Scheme (PLS) Account

PLS Term Deposit

Short Notice Term Deposits

MIS (Monthly Income Scheme)

Sole proprietorship Account

Current municipal license

Resolution of Board of Directors about the person who is authorized to

PLS Term Deposit

Monthly Income Scheme (MIS)

Account Opening Procedure

Requirements for opening an account are

In case of current account

Procedure of account opening in NBP

Issuance of cheque book

Advances and Credit Department:

Funds based Financing

Agriculture Finance (seasonal finance)

Demand Draft (DD)

Mail Transfer (MT)

Telegraphic Transfer (TT)

Pay order (PO)