Internship Report

Name of Internee: Wajahat Ali

Field Bachelors in Business Administration (BBA) 6th Semester
Specialization in Marketing
8 Weeks internship in National Bank of Pakistan, Sakhi Hasan Branch
Karachi
Which was stared on June 10, 2018 and finished on August 10, 2018

IQRA UNIVERSITY

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 Executive Summary

This report is prepared after completing our internship at National Bank of Pakistan, “Sakhi Hasan Branch

Karachi”. The purpose of internship finance report was to Looking for a good hand on experience in the

practical field with an invaluable knowledge of my experience and to amass relevant information to pile up

internship report on National Bank of Pakistan.

The main thing is to enable the students to use the management techniques and find out the possible solution of

management problems faced by the organization.

National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact

that NBP has its branches in all of the major financial capitals of the world. NBP was awarded as "Best Foreign

Exchange Bank in 2008” by world's leading financial journal “Global Finance” and the bank with the highest

return on capital in Asia and No.8 in the world by Banker Magazine in July 2003.

The methodology for collection of data is primary as well as secondary data. The biggest source of information

is our personal experience.

The report is divided into different portions. 1st portion is the sector in which NBP I have discussed overview,

history, Nature of business.

In 2nd Portion, I have discussed the plan of our internship in which we mention the branch and the departments

where I did an internship. The 3rd section is about the training program which shows the operations of the

departments and the details .In this report, we mentioned that what I learned in Sakhi Hasan Branch during

my internship.

In this report, we gave the history of NBP, Nature of business, Department of Branch Product Line. After that,

I noted my internship program. In this report, I mention in which departments I worked and got practical

experience. There are 3-Main departments in NBP Sakhi Hasan Branch which possess many

divisions/sections & departments as follow.

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An internship is the great tools for gaining practical and professional knowledge. It is great bank supported by

the Government. we worked different department in this bank. During our stay in the department, we learned a

lot of activities performed by this department.

Now it is time is to write a report on the national bank of Pakistan importantly its banking procedure. You will

be able to study the national bank History, its product lines. After this portion, readers will be able to study

about all NBP all departments information, its tasks, and procedure how it performs. In the next portion of my

report will be consist on those Department where I got Training. At the end of the report after Conclusion, I

have written some necessary recommendation and suggestion for NBP improvement.

Historical Over View of National Bank of Pakistan:

The history of National Bank of Pakistan is part of Pakistan’s 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.Initially the Bank was established with the objective to extend credit to

the agriculture sector. The normal procedure of establishing a banking company under the Companies Law

was set aside and the Bank was established through the promulgation of an Ordinance, due to the crisis

situation that had developed with regard to financing of jute trade. The Bank commenced its operations

from November 20, 1949 at six important jute centers in the then, East Pakistan and directed its resources in

financing of jute crop. The Bank’s Karachi and Lahore offices were subsequently opened in December

1949. The National Bank of Pakistan came forward to establish its offices in the Cotton growing areas and

extended credit facilities liberally in order to restore stability to the market. In 1951, the country was once

again faced with a crisis in the cotton trade when prices was crashed and touched the lowest level since

independence following the cessation of hostilities in Korea. The bank in collaboration with the cotton

board provided then Necessary Credit facilities to the trade and the crisis was tided over.

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 NATURE OF BUSINESS:

Bank is basically deals with borrowing, lending investing activities .The nature of National bank is

different & unique from other banks/financial institutions. The Bank acts as the agent to the State

Bank of Pakistan for handling Provincial/Federal Government Receipts and Payments on their behalf.

The Bank has also played an important role in financing the country’s growing trade, which has

expanded through the years as diversification took place. It has a diversified business portfolio and is

today a front end player in debt –equity market ,agriculture financing, corporate investment Banking

,retail and consumer banking, Treasury services and its taking growing interest in developing the

country’s small and medium enterprises and it is also fulfilling the social responsibilities as corporate

citizens. The National Bank of Pakistan has its headquarters in Karachi, Pakistan. NBP

already has 1409 branches in Pakistan and 22 overseas branches in 18 countries. Under a trust

Deed, the bank also provides services as trust ee to National Investment Trust.

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INTRODUCTION TO BRANCH BANKING DEPARTMENT
 There are 3 departments in branch and these departments possess many divisions.

Advance
Salary

Gold Loan
1.ADVANCES/ CREDIT
DEPARTMENT Running
Finance
(Loan Department)
Saiban Loan

Car Loan

Cash Payment

Cash Receipt 2.Cash

Department

Government
Collection /
Utility Accounts
Department

Pension

Remittance

3-GENERAL
Clearing
DEPARTMENT

Compliance

Cash
Deposit

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Locker
 ADVANCES / CREDIT DEPARTMENT (Loan Department)
Advances or credit is the main important department in every bank because it generates the real

income for bank. Without this department branch cannot become in profit because it generates

real income for branch, other department also generates income through charges and other

processing fees which are quite less as compare to this department earning.

FUNCTIONS: This department performs two operations, first is loan sanction and

recovery of amount from defaulters.

TYPES OF LOANS IN BRANCH

Basically there are so many types of amount in banking but NBP Sakhi Hasan Branch offers

only three types of loans.

1. GOLD LOAN

2. ADVANCE SALARY

3. RUNNING FINANCE

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 1. GOLD LOAN

One of the most common type of loan is Gold Loan. In this type of loan, you need to give a gold

for getting loan it means you can get loan against their any type

of gold e.g. jewelry or gold biscuits.

How much we get loan?

We can get 70% amount of loan of their Gold.

You may also get more or less than 70% amount of gold if you have good quality gold. It means

how much you get loan is depend upon your quality of gold.

Bank hire their own Goldsmith who check the gold and decides how much bank need to give

loan. Goldsmith check the quality of gold and decides the actual worth of gold and also how

much bank need to sanction loan. It means Goldsmith is the decider of loan amount on behalf of

bank.

How much Interest Bank Charge?

Bank Charge 13.5% as an interest (for bank its markup). Suppose you get loan of 600,000 then

you need to pay 681000. In 681000, 600,000 is the principle and remaining amount that is

81000(interest amount) is known as Markup of Bank.

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Time Period and Method of Payment and Renewal.

Time period: 1 year tenure

Method of Payment : Monthly / Semi-Annually (Whole amount pay in 2 division, means half

pay after 6 months and remaining pay after 6 months) /Quarterly (Whole amount in 4

divisions)/ lump sum(Whole amount pay in a once)

Method of Payment deciding at the time of loan sanction by customer ourselves.

Renewal : If you not pay the whole amount of loan after 1 year tenure then bank has right to

auction your gold for recovering their money, but before selling customer gold they sent 3

notices to their customer.

Is it possible we increase our 1 year tenure and renew the loan? Yes it is if you pay the Markup

of Bank (Interest Amount) not whole amount only markup. Remember that after renew loan

bank again charge same interest rate but on the remaining amount. Before auction the gold, they

also sent 4 notices if you respond on these notices then bank auction your Gold for their

recovering the amount

INSURANCE OF GOLD

You need to pay the 0.4% amount of loan as an insurance charges to secure the gold. If you not

pay insurance charges then you have no right to claim the gold in bank robbery case. Suppose

your gold get robe in bank robbery then bank are not liable to pay you amount of gold if you not

pay the insurance charges but if you pay the insurance charges of gold then bank are liable to

pay you actual amount of gold.

For Example: Your Actual value of gold is 100,000 and bank gives you 70,000 as a loan then in

the case of robbery bank give you actual value of gold that is 100,000.?

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NOMINEE OF GOLD.

Suppose you get the loan from bank and during the rollover tenure you got death or mentally

become unstable then your gold was claim by your nominee. But if both (you and your

nominee) get death or mentally become unstable then this case is going in the Court nominee

selection that is you. Who is the nominee of your nominee? Your nominee is that person which

was decided by you at the time of loan sanction. You have also right to select more than 1

person as your nominee. In this scenario, important thing is that your nominee claim the gold if

whole amount is paid to the bank otherwise he / she need to pay the remaining amount with

interest if they want to claim the gold.

2. ADVANCE SALARY

Advance Salary is the second type of loan which is provided to only government employees it includes

permanent employees of Government, Semi Government and autonomous bodies. Advance Salary loan

does provide to the contractual employees of government. Advance Salary is limited up to 2 Million that

is 20 lacs

Autonomous body refers to those body which has sole right and power to establish their

own laws and code of conduct. These body are free from an external pressure, thus they can

act independently.

Time Period:

1 to 5 years tenure at your own choice it . Tenure is of 1 to five years it’s depend on you how much

installment you pay every month of your salary but remember that you are not able pay more than 50%

of your salary as an installment because that is rule or part of policy of NBP. Suppose you come for

advance salary at the age of 57 then you cannot get loan this age because for Advance Salary it is

important or necessary that your 5 year service must remaining. As we know that retirement age is 60,

when you reach your age 60 then your government service is over.
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INTEREST ON ADVANCE SALARY: NBP Charge 19.5% interest on Advance Salary which was

lowest interest rate charges by Bank on Advance Salary.

PLEDGE or MORTGAGE FOR BANK: End-of-Service-Charges of that government employee. End-

of-Service-Charges is definitely given to the employees of government but remember that end-of-

service-charges does not given to Contractual government employees. Also remember that Bank offer

Advance Salary loan to the employees which was very much less than their End-of-Service-Charges so

Bank can easily recover their Amount from End-Service-Charges in case of default. In Advance Salary

Loan, Bank become in loss in two cases, first your End-of-Service-Charges have been seized (Zabt

hojana) and second case of Zakat of your End-of-Service-Charges

 ELIGIBILITY OF TAKING ADVANCE SALARY LOAN :

 A person should have government employee.

 His /her salary must deposit in that branch from where he /she want to take loan. e.g: if his/her

salary deposit in (NBP Nazimabad branch) so they can take only from this branch other branches

will not entertain them .

 Person should not defaulter from any bank

 it is necessary that person should take home 40% of his/her salary after paying loan installment.

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 DOCUMENTATION REQUIREMENT FOR THE ADVANCE SALARY

LOAN :

 Stamp-paper of 100 and 50 and 1 copy of both.

 Office letter-head (sign of principle head for employee verification)

 Three salary slip (necessary for the proof of salary)

 2 snap, 2 CNIC , Service card of your office

 2 witness of that office with their CNIC.

METHOD OF PAYMENT:

You don’t need to pay installment amount directly by yourself because bank directly deduct installment

from your salary which was come in the Bank.

3. RUNNING FINANCING

Running finance is the third type of loan. This loan is divided into two types of need. First Small

Business Need and second is Domestic Need. In Running Finance, Bank gives you loan against

two things, first is your property (you to transfer your property to bank with agreement or

contract with your signature) and second is Defense-Saving-Certificate (in defense saving

certificate two values involve, first is face value i.e. value of certificate at that time and second

vale is In-cash value i.e. value of certificate after applying interest according to respective year).

Running finance is consider to be one of the best type of loan because in this loan interest never

apply on whole amount, interest apply only that amount which was used by you during your

tenure. But due to lack of knowledge and less marketing about this loan people never aware
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about this loan that’s why people does not take this loan and Bank's sanctions the running

finance rarely.

Time Period: 1 year Tenure.

Method of Payment: Monthly, Quarterly, Semi-Annually, lump sum.

Interest Rate: (2 to 4) % + KIBOR. This is known as Floating Markup Mechanism. Interest

rate of running finance is also depends on mutual understanding between bank and customer.

ABOUT KIBOR: KIBOR (Karachi interbank Offered rate) is the average interest rate at which

term deposits are offered between prime banks in the Pakistani wholesale money market or

interbank market. KIBOR is not greater than 10%

ABOUT DEFENSE SAVING CERTIFICATE.

To meet the financial needs of long term category investors and provide them with the

opportunity to take maximum benefit of their savings, the Government of Pakistan introduced

Defense Savings Certificates (DSCs) scheme in the year 1966. The scheme has specifically been

designed to meet the future requirements of the depositors with a maturity period of 10 years.

These Certificates are available in the denominations of:

500/-, Rs.1000/-, Rs. 5,000/-, Rs. 10,000/-, Rs. 50,000/, Rs. 100,000/-, Rs. 500,000/-, Rs.

1,000,000/-

Who Can Invest?

All Pakistani Nationals as well as Foreign Nationals can purchase DSCs being an adult singly, a

minor with guardian and two adults jointly, where the payments can be received either by both

jointly or any one of the holders. An adult can also purchase DSC on behalf of a single minor,
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two minors jointly or as a joint with a minor. Institutions may also invest their employees’

related funds such as pension, gratuity, superannuation, contributory provident fund and trusty

fund etc.

How to Purchase?

SCs can be purchased from any National Savings Centre (NSC), Pakistan Post Office (PPO) or

authorized branches of Scheduled Banks and the State Bank of Pakistan (SBP) by filling in the

SC-I(Application Form) which available free of cost from all the above issuing offices.

Documents Required with the Application Form:

 Adult Pakistanis

A copy of the Computerized National Identity Card (CNIC)

 Overseas Pakistanis

A copy of National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin

Card (POC)

 Minor

A copy of Form B or Child Registration Certificate (CRC) as issued by NADRA

 Institutional Investors

An attested copy of NTN Certificate or Institutional Registration Certificate (IRC) .

 Foreign Nationals

A copy of the Passport

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Mode of Deposit?

DSCs can be purchased by depositing cash or cheque/ draft/ pay-order at the Issuing Office. The

Certificate shall be issued immediately against cash payment. However, in case of deposit

through cheque/ draft/ pay-order, the Certificate shall be issued on the date of realization of the

cheque/ draft/ pay-order after receiving the clearance advice.

Investment Limit ?

Minimum: Rs.500/-

No maximum investment limits

Encashment?

DSCs are encashable at par any time after the date of purchase. However, no profit is payable if

encashment is made before completion of one complete year. DSCs issue/purchase/re-invested

on or after November 15, 2010 shall not be re-invested on maturity.

Tax and Zakat?

The rate of tax to be deducted shall be as follows:

 Filers: 10% of the yield/ profit

 Non-Filers: 17.5% of the yield/ profit; however, the rate shall be 10% if the yield or

profit paid is less than Rs. 500,000/-.

Zakat shall be deducted at source as per rules.

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  OTHER TYPES OF LOANS

Gold Loan, Advance Salary and Running Finance are those loans which is giving by our branch

and now I am going to discuss other types of loan which was giving by NBP.

 SAIBAAN LOAN

Saibaan loan is consider to be one of the biggest loan at NBP because in this loan huge amount

or very high amount was involve as compare to other loans. Saibaan loan is given in exchange

of property. Maximum limit of this is up to 35 Million that is 3.5 Crores. In Karachi, Saibaan

loan is not available in every branch. Saibaan Loan is available only in Lasbela branch which

was saturated in North Nazimabad near Lasbela and named is Bela Branch Lasbela. Another

place where Saibaan loan is available NBP Head Office. NBP Head Office is the only place

where all types of loans are available.

Time Period: 3 to 20 years

Interest Rate: 45% in 3 years. But if customer is able to pay their amount . Before three years

then he does not need to pay whole interest. Suppose, a person takes a loan of 100,000 and after

3 years he need to pay 145000 as of 45% interest on 3 years but if he is able to loan after 1 year

then he only need to pay only 115000 that only 15% interest after 1 year and after 2 years this

interest is 30%. In simple words, in Saibaan loan every year interest rate increase or decrease

with 15%.

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 CAR LOAN

Car Loan is provided only to Bank Employees. For this loan, it is important that your salary

must come in that bank. Automatic deduction of installment from your salary . Five year tenure.

If you end your installment period then remaining amount will be deduct from your End-of-

Service-Charges.

ABOUT INTEREST RATE OF EVERY TYPE OF LOAN,

NBP Head Office changes interest rate of loans at regular interval of time but change of interest

rate will not effect on those loans which was already sanctioned. Suppose you take a Gold Loan

on 13.5% as an interest rate and then NBP Head Office Change the interest rate of Gold Loan

13.5% to 12%, it means 12% is an new interest rate of Gold Loan but this 12% does not apply

on that loan which was already sanction.

CONCLUSION ABOUT ADVANCES / CREDIT DEPARTMENT.

After seeing and observing the Credit Department of NBP I realize that Credit Department of

NBP was quite-remarkable in every aspect because like other private NBP does not have any

hidden charges, their method of payment is very simple, flat and also not complicated like other

Banks. Another reason for saying that NBP have Remarkable Credit Department is that NBP

charge very low interest rate as compare to other banks.

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 CASH DEPARTMENT
Cash Department is the second department in Bank. This department deals with the withholding of cash

money or currency notes. The main function of this department is to have an eye on cash flows. Currency

is kept in chests inside strong rooms at the branch level. Some branches have chest, some have sub-

chests and others have no chests. Currency is supplied by SBP and SBP also monitors its flow.

There are only a few persons at each branch who can open the chest. There is a limit on the amount of

money kept outside of the chest at any time. Cash In-charge is responsible for any discrepancy in the

cash balance.

Cash Department is the second department in Bank. Cash department is divided into 3 divisions:

 Cash Payment

If customer need to receive money of cheque or Bonds etc then customer need to come in this

for collecting cash.

 Deposit: account holders credit amount in their account via cash and transfer cash

amount into other NBP account within city or out of city branch.

 Pay order: It is a secure and reliable instrument than cheque when have to pay money

reliably .account holder can make by their account but non- account holder can make in

cash payment.

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 Cash Receipt

This Division is related to receiving of Cash from Customer for Deposit of Cash, Money

transfer and Pay Order

 Government Collection / Utility

This division deals with collection of Government Collections and Utility bills. NBP is the only

bank that is working as the agent of SBP and it’s a heavy duty of collecting government receipts

like FBR taxes collection, Property tax ,Renewal of Arm license, Revenue Receipts, utility bills

etc.

Arm license: people who keep weapons renew their weapon license annually by cash

payment.

Revenue Receipt: “Revenue receipts" refer to all money the business makes through its

operations. This is a type of recurring profit that comes from repeat transactions with

customers, which the business needs to survive. The business makes these repeat transactions

to generate enough revenue to continue operations.

Utility Bills:

There are four types of Utility bills KESC, PTCL, SSGC and KWSB. But in our branch there

no collection of bills of KWSB because there is no contract between NBP Head Office and

KWSC Collection of Utility Bills is the commission base service in which Branch Charge 8

Rupees from KE, PTCL and SSGC for the collection of their bills.

Branch make a pay order of SSGC and make an entry of every SSGC bills in excel and then

send to SSGC with the copies of bills and excel sheet daily. While the bills of KE and PTCL

dispatch with the help of TCS with copies of bills and excel sheet.
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About FBR:

Federal Board of Revenue (FBR) is consider to be heavy tax collection because in FBR

includes very taxes. There are 5 types of FBR.

Income Tax (An income tax is a tax imposed on individuals or entities (taxpayers) that varies

with respective income or profits (taxable income). Income tax generally is computed as the

product of a tax rate time’s taxable income. Taxation rates may vary by type or characteristics

of the taxpayer

Sales Tax (A sales tax is a tax paid to a governing body for the sales of certain goods and

services. Usually laws allow (or require) the seller to collect funds for the tax from the

consumer at the point of purchase.

Wealth Tax (A wealth tax (also called a capital tax or equity tax) is a levy on the total value of

personal assets, including: bank deposits, real estate, assets in insurance and pension plans, ownership

of unincorporated businesses, financial securities, and personal trusts. Typically liabilities (primarily

mortgages and other loans) are deducted, hence it is sometimes called a net wealth tax.

A wealth tax taxes the accumulated stock of purchasing power, in contrast to income tax,

which is a tax on the flow of assets (a change in stock).

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 SRB (Sindh Board of Revenue)

Gain Tax (A capital gains tax (CGT) is a tax on capital gains, the profit realized on

the sale of a non-inventory asset that was greater than the amount realized on the sale. The

most common capital gains are realized from the sale of stocks, bonds, precious metals, and

property)

There is No FBR in our Branch.

Now let’s talk about our branch i.e. Sakhi Hasan Branch. There is only 4 types of government

collection here and also Renewal of Arm license. And there is no FBR here.

Property Tax (a tax levied directly on property)

Central Sales Tax (The Central Sales Tax (CST) is a levy of tax on sales, which are

effected in the course of inter-State trade or commerce)

Professional (Profession tax the tax by the state governments in Pakistan. A person

earning an income from salary or anyone practicing a profession such as chartered

accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax)

Treasury (Treasury Tax and Loan Service, or TT&L, is a service offered by the Federal Reserve

Banks of the United States that keeps tax receipts in the banking sector by depositing them into

select banks that meet certain criteria.

GEN

ERAL DENT
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 GENERAL DEPARTMENT
General Departments base on Six Divisions and these divisions are as follows:

a) Account Opening

This is the main department of any bank .for depositing money in account and doing other transaction

through account customer is required to open his/her account with the bank. There are two types of

accounts opened at NBP i.e. PLS saving account and the Current account. PLS (Profit and lost Sharing

account) saving account is mostly used by individuals and the current account is mostly used by

businessmen or corporations or individual as well. Saving account holders are offered profits or loss on

their deposits whereas current account holders enjoy the facility of payment on demand. Other accounts

Advance Salary Account offer to Government Persons. For Business Account, it is important that firm

should be tax payer.

REQUIREMENT FOR OPEN AN ACCOUNT:

 Required Necessary proof according to purpose of depositing money in an account Customer

have to Provide info regarding type of opening account. e.g (Salary account, pension or business

account)

 Attested NIC copy of Account holder & Next of kin

 Evidence of Address with help of my Recent paid utility bill attested copy

 Source of Income with the help Reference, evidence or Departmental letter. In case of Student

account, father source of income is necessary.

 Cheque Book issuance & activation, ATM card issuance is also the responsibility of account

officer.

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 b) Pension

The bank is also disbursing money on behalf of SBP. Pension payment is one of the heaviest functions

performed by the bank. Pension salaries of government servants of Education Departments, Army,

PIA, NBP Ex-Staff and other Government organization’s servants and also deposit benevolent fund.

Pension is release from AGPR, AG SINDH .They send list to NBP then branches deposit amount in their

pensioner’s accounts. This Department has huge Responsibility to maintain all the records of their

pensioners account up to date otherwise fraud and forgery chances may occur that’s why Pensioners have

to submit their life certificate in every 6-months, and personal appearance is also required.

REQUIREMENTS
 Departmental Letter

 Account in Government sector. Private bank is also preferable

ATTRIBUTES OF PENSION:
 Pension starts after 60 years that is after. In case of death his pension will claim by his

family.

 In family members, boys get pension till 18 age while girls get pension till Non-Marriage.

 Family member boy/girl can’t get pension if they employed in any government job.

 If Self-Pension has more than 1 children then pension is divided with rules.

 Account making for children procedure is important.

c) Remittance

A very important department in the bank is remittances branch. This branch deals with the disbursement

and collection of money that is not directly paid or received by NBP. The money is collected and

disbursed at NBP counters but this money pertains to accounts of other banks or institutions and not of

NBP accounts. Various ways used by people to send and receive money are Bank drafts, Mail Transfer

and Western Union Money Transfer etc.

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The money is transferred to both inside the country and abroad. Customers can also transfer their money

to any branch account of NBP Through cheque known as IBT (interbank transaction).Customer also can

Transfer their huge amount from their account to any other account in secure way by making payment

order. It’s a Commission base Activity. 250rs on 1 transaction.

How Remittance is done?

Money is sent by Person through any channel to Person through in which receiver must need to tell code,

without code remittance is not possible.

Procedure of E-remittance: Customer NIC Data

d) Clearing
Clearing is a system by which banks exchange cheques and other negotiable instruments drawn on each

other within a specific area and thereby secure payment for their clients through the clearing house at

specified time in an efficient way. In Clearing, we post a other bank checks and it is also use for transfer

other bank amount. In clearing before debit or credit in account properly check Date, signature,

Amounts, Clearing Stamps, Branch Stamps, officer signature if anything is incorrect or missing on the

cheque so it returns.

Clearing House:

SBP has assigned responsibility to National Institute of Facilitation Technologies (NIFT).It is one the

service provided NIFT to other commercial banks .NIFT acts as a clearing house Different are the

members of clearing house .A representative of each bank represents his bank in clearing house.

Each bank has collected cheques as behalf of their customer but these cheques are not drawn on their

bank so in the clearing house, they hand over these cheques to respective banks on which these cheques

are drawn, Similarly each bank receives cheques from other if any.
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INSTRUMENT TO BE PRESENTED:

 Cheques

 Demand drafts

 Pay order

TYPES OF CLEARING:

 INWARD CLEARING /within Bank: In this we have to debit our customer

account.

 OUTAWARD CLEARING/Within city: In this we have to send it cheque to

relevant bank for payment.

 INTERCITY CLEARING: when we receive other city branch cheque have to

send it to relevant city bank

e) Compliance

Compliance means internal Audit. In Compliance Depaertment makes a daily report of everything which

done in Branch on Daily, Half-yearly and Annual Bases. This department investigates about pending

reconciliation items. Usually, this is done half yearly. Main duty is to ensure that transactions are treated

correctly and in compliance with rules and regulations and the balances are reconciled. This department

is actually performing the internal control function to ensure the achievement of objectives and mission

of NBP.

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 f) Cash Deposit

This branch deals with the withholding of cash money or currency notes. The main function of this

department is to have an eye on cash flows. Currency is kept in chests inside strong rooms at the branch

level. Some branches have chest, some have sub-chests and others have no chests. Currency is supplied

by SBP and SBP also monitors its flow.

There are only a few persons at each branch who can open the chest. There is a limit on the amount of

money kept outside of the chest at any time. Cash In-charge is responsible for any discrepancy in the

cash balance.

Functions of Cash Deposit:

 Cheque-Posting or Cheque Verification( withdrawl cheques ,deposit cheques,transfer

cheques)

 Submission and Making of Payorder.

 IBT (Posting NBP other Branch Cheques)(including IBT cheque withdrals, transfer

money to other branch by cheque or cash

 Credit amount to customer’s account deposit by cash/Cheque

 Voucher posting

 Receipt Posting of Bills.

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THINGS SHOULD BE TAKEN CARE OF WHILE GIVING
TOKEN TO CASH THE CHEQUE:
 Case 1: When “Self” is written on the cheque in front of pay section

When “Cash” is written on the cheque in front of pay section and the account holder is present itself then

no NIC would be required and only two signature of the account holder would be taken at back side of

the cheque.

 Case 2: When “Cash” is written on the cheque in front of pay section

When “cash” is written in front of the pay section and customer is not the account holder itself then copy

of NIC is required and a signature is taken at back side of the cheque from the customer.

 Case 3: When “Name of a person” is written on the cheque in front of pay section

When “Name of a person” is written on the cheque in front of pay section then the NIC and two

signature of the bearer would be taken along with the cheque

Note:

If amount on the cheque would be greater than fifty thousand then NIC copy of the account holder would

be required in all cases.

If “Name of a person” is written on the cheque in front of pay section and Cheque is “Cross-Cheque”

than that amount will go in account.

 Case 4:
When the cheque is of other branch When the account holder is present itself then copy of NIC,

mobile number and two signature would be taken at back side of the cheque When someone else comes

to cash the cheque then his or her copy of NIC and signature is taken on back side of the cheque and it is

made sure that NIC of account holder along with his or her two signatures and mobile number at the

back is also present.

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Note:

If amount on the cheque would be greater than fifty thousand then With-Holding Charges will be taken

by Bank. With_Holding Charges charge on those cheques which is greater than 50,000 and “With-

Holding Chargers” is 0.6% of that cheque.

During cheque posting, if cheque amount is 25,000 aur greater than 2 signs of Officers is require for

posting.

SUBMISSION AND MAKING OF PAYORDER

Basically there two types of Payorders

 Open Payorder ( It is Cashable)

 Cross Payorder (Not Cashable) It can only deposit in account of that person which name

is mentioned on payorder.

Making Payorder is very easy. You just need to fill a simple bank form from which you need to mention

the name of that person whom payorder is make and fill other requirements.

g) Locker
For the security of expensive ornaments, documents and anything which are not safe at home .

Customers can get locker in bank and operate when they want. Only account holder can avail locker

facility. To issue locker customer have to pay yearly charges, there are three sizes of locker small,

medium and Large .Customer can issue locker of any size as per their need ,charges of all lockers are

different according to their sizes. Customers also can do insurance of their locker if they do .they can

claim their locker insurance in incase of Robbery in bank.

There are types of locker here; Small, Medium, Large

REQUIREMENTS OF LOCKER:

KEY DEPOSIT (Advance Payment and return after closing the account)

It is refundable at the time of locker surrender (Closing of Locker)

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 SMALL MEDIUM LARGE
• 4000 • 5000 • 6000

RENT (Need to pay in Advance Annually)

SMALL MEDIUM LARGE

• 2500 • 5000 • 10,000

FED (16% of commission) (Rent)

REQUIREMENTS FOR FAMILY IN CASE OF DEATH OF IDEMNIFIER

(Locker Holder)
1. Application from claimer

2. Heirship of Certificate

3. Indemnity Bond

4. Letter of Disclaimer

5. Death Certificate

6. FRC from Nadra (family Registration Certificate)

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INSURANCE ON LOCKER:

SMALL MEDIUM LARGE

• 700,000 • 10,000,00
• 500,000
7 (Lacs) 10 (Lacs)
5(Lacs)

CONCLUSION
The National Bank of Pakistan plays a key role in the strategic national development. The bank

has historically been the financial arm of the government and has enjoyed the blessings of state

support in the form of huge public sector funds and deposits.

The current management of National Bank of Pakistan was hired purely for their international

experience, business orientation to turn around a purely public institution into a sustainable and

commercially viable bank serving public interest along the lines of a large modern commercial

bank.

As I have written in my executive summary, this report has done over the National bank of

Pakistan at Karachi. This report aim is to analyze the current NBP banking position, it's

banking function as I have written in department’s detail.

Secondly, the report was presented in order to dig out the over all condition of the NBP

regarding Banking provocative, management, HRM perspective. As I have written in my

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training program, I worked in the different departments and have learned a lot of work, activities

in professional manners. I have observed some true facts regarding National bank of Pakistan

while writing my report. These are under below.

 There is an injustice distribution of work in NBP.

 According to my observation, NBP have poor marketing system

 Practical work is very different from the theory at NBP. Rules, procedures, and policies

are not fully in practice.

 My findings highlight that manager has the very limited authority he or she has to take

approval from the upper management for every new decision.

 NPB has a very poor job rotation system and there is a lack of appreciation for staff

 The bank should provide support to the Micro, Small and Medium enterprises thereby

reducing unemployment and helping to create a more equitable distribution of wealth.

 The NBP should adopt modern banking tools and techniques. Quality leadership,

clear vision, investment

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