CONTENTS

CHAPTER NO. 1
INTRODUCTION Page No.

1.1 History Back ground of N.B.P 01-02

1.2 An Overview & Management of N.B.P 02-03
1.3 Objective of National Bank of Pakistan 03-04
1.4 Functions of National Bank of Pakistan 04
1.5 Purpose of Study 04-05
1.6 Methods of study 05-06
1.7 Limitation. 06-07

CHAPTER N0.2

INTERNATIONAL FEATURES OF NATIONAL BANK OF PAKISTAN

2.1 Management & Head office management 08
2.2 Organization & head office management 08-10
2.3 Law Recovery/ Litigations Division 10-12
2.4 Organizational Structure 12
2.5 Departments Functioning under N.B.P 13-15

CHAPTER N0.3

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

3.1 Computerization 16
3.2 Decentralization 16
3.3 Foreign Trade & Operation 15-17
3.4 Progress in Islamization of Banking 17

CHAPTER N0.4

TRAINING AND FACILITIES OF STAFF

4.1 Training to Staff 18
4.2 Salaries & Facilities of staff 19

CHAPTER N0. 05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE
OPERATED BY NATIONAL BANK OF PAKISTAN.
5.1 Current Deposit 20
5.2 PLS Saving Account 20-21
5.3 PLS Term deposits Receipts or Fixed deposit A/Cs 22-23
5.4 Foreign currency A/c 24
5.5 Future Outlook of National Bank of Pakistan 24

CHAPTER N0.6
CONCLUSION AND SUGGESTIONS
6.1 Conclusions 25
6.2 Suggestions 26
6.3 References 27
 INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE

This is to certify that Business Intermeshed Report on

National Bank of Pakistan, has been prepared by

MISS . NUSRAT D/O MUHAMMED HUSSAIN QURESHI

under my guidance for the partial requirement for the degree of

"Master of Business Administration". It is also certified that the work
is found original and the Internship has been meticulously carried out
and fulfils all the requisite conditions.

Dr. Anwar Ali Shah G. Syed

Professor / Dean
& Internship Guide
I.B.A, University ofSindh,
JAMSHORO
 DEDICATION

This humble effort is dedicated

to my beloved parents & teachers, whose

love and efforts can never be forgotten.

 ACKNOWLEDGEMENT

Praise to Almighty Allah, the omnipresent/ the Omnipotent, the

Omniscient/ who bestowed upon me the potentially and ability to
accomplish this work.

No sequence of works can express my sincere gratitude to our

respected Professor and Dean, Institute of Business Administration Dr.
Anwar AH Shah G.Syed without his valuable guidance, rich
experiences/ helpful advice, useful suggestions and constructive
criticism and comments. I could not have been able to complete this
piece of work titled as "Business internship".

I have honour to express my heart-full gratitude to the executive and

staff member of National Bank of Pakistan, Fatima Jinnah Road Branch
Hyderabad/ who kindly gave them acceptance to the topic of my
Internship Report along with many useful suggestions, which
encouraged me to complete my work.

Thanks for all those who extend their cooperation for conducting the
work of "Business Internship"

NUSRAT QURESHI
M.B.A (Final) Evening
Institute of Business Administration
University of Sindh/
Jamshoro.
 CHAPTER # 01

INTRODUCTION

1.1 HISTORY BACKGROUND OF N.B.P

The rational Bank of Pakistan is a Commercial Bank and transacts all

types of Banking Business. The National Bank of Pakistan was established on
November 29, 1949 as a semi public commercial bank.

The Bank has the distinction of acting agent of the State Bank of
Pakistan and operates treasuries where the State Bank of Pakistan does not have
any office.

The Head Office of the Bank is at Karachi. Ever since its establishment
in 1949 it has been leading Commercial Bank of the nation, sole agent of the
Government of Pakistan's batter trade with countries and of State Bank of Pakistan
for the Government Treasury.

It has offices at all the major financial centers of the including at pride
places likes 100 wall streets. New York and United nations Plaza. Its International
network includes Branches at Bahrain, Cairo, Paris, Frankfurt, Hong Kong, London,
Washington D. C of shore banking unit at export processing zone. Karachi and
representative offices functioning at Beijing and Seoul

In Pakistan, the bank provides complete bank facilities to the people

at over 1436 Branches operating even at the far lug Northern Areas. National Bank
of Pakistan is the first bank in the country to introduce and implement: supervised
Ruler Credit Programmed help small farmer to obtain loans at his doorsteps on
easy terms and conditions. It has also played a pioneering role in introduction of
profit and loss sharing System (PLS) as a major towards Islamization of economy.

In addition to the normal business operations the bank provides

special loan facilities for higher education for studies abroad and Qarz-e-Hasna to
deserving poor students of Medical and Engineering Colleges in Pakistan and also
recently introduced the fifteen (15) months advance salaries for the facilitation of
government servants. The well equipped research department to work on the
developing trends of finance and banking, besides a very well managed library at
the Head Office.

The banks carry on its business through a wide network of branches

Locally and internationally. These branches execute their function under the
supervision of local Regional Offices and regional offices are supervised by the
Head Office located a magnificent building in the heart of Karachi's center.

In the fifty-five years that have followed the bank has made
remarkable progress testifying to several things.

It is now extending the operations of the Bank to all branches to

Banking, to commerce, to industry to trustee services as well as to agriculture and
to the need of the small or big businessman.

It has rapidly advanced from an institution with restricted power to

the biggest commercial banks in the country it also shows it soundness of the
policies that the bank has pursued in the execution its tasks.

The National Bank has lead the trial in this respect, other banks have
followed it. 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, (http://www.nbp.com.pak)

1.2. AN OVERVIEW AND MANAGEMENT OF N.B.P

The story of National Bank of Pakistan is part of Pakistan's struggle

for economic independence.
When, National Bank of Pakistan came into existence in November
1949, The country was facing a severe economic crisis originally, The intention was
to setup this bank some time in early 1950, but the critical situation that develop
in the jute trade as a result or India's refusal to accept the exchange rate of the
Pakistan Rupee, following the devaluation of its own and the sterling functioning
Dacca and opened its offices at five important jute centers namely Narayanganj,
Chandpur, Rangpur and Khulna, in the East Pakistan.

The Bank advanced large sums of money to the agents of the newly
established Jute Board and gave much needed help to the market. The crisis was
averted, the jute growers received a fair price for the produce and the country
earned the foreign exchange it would have otherwise lost.

Again, in 1950 following the outbreak of war in Korea, Cotton prices

shot up to unprecedented levels and the credit facilities available for financing the
movement of the cotton crop fell far short of requirement.
 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 trad6 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 the necessary Credit facilities to the
trade and the crisis was tided over {http://www.nbp.com.pak).

Another important event in the early history of the National Bank of

Pakistan was taking over the agency work of the State Bank of Pakistan in 1952,for
transacting Government business and managing currency chests at places where.
The Bank of Pakistan did not have an office of its own. In 1962, the agency
arrangement was extended for further period.

Prior to nationalization, a Central! Board of Director governed the

bank, which consists of a managing Director appointed by the Central Government,
nine directors elected by the shareholders and the three directors appointed by the
Central! Government. The President of the Central Board was appointed by the
central! Government amongst the Director.

Consequent upon nationalization, the Central Board disclosed and in

its pace an Executive Board consisting of president, who is the Chief Executive and
four other member were appointed for General direction and superintendence of
the affairs and business of the Bank (http://www.nbp.com.pak).

The general direction and superintendence of the affairs and business

of the bank vests in this executive board. In 1980, the Federal Government
constituted Board of Directors comprising the president, five member of the
Executive Board of the Bank one nominee each of the Pakistan banking council and
the ministry of Finance. All nationalized commercial banks are controlled via the
Pakistan Banking Council, being to State Bank of Pakistan regulations as well. The
Federal Ministry responsible for Bank operations is the Ministry of Finance.

1.3 OBJECTIVES OF NATIONAL BANK OF PAKISTAN

The main objective of National Bank of Pakistan has been to include

and spread banking habits among the people mobilize their savings and thus make
and ever increasing contribution to the economic development of the country. It
has all along pursued a policy of rapid development extending, its facilities to
almost every center of economic potential in the country. Its services have been
increasing continuously and are being brought within an easy reach of the ever-
growing number of people, (http://www.nbp.com.pak/)
.
To day it provides the largest network of offices in the country, 1436.
Being in Pakistan and 22 abroad. It offers remittance facilities to almost every
important center in the country to provide facilities to the traveling public the bank
has introduced its own traveler's cheque which are excusable at a branch of the
bank in Pakistan.

A.T.M Service.

A.T.M Service has also been started by the National Bank of Pakistan.
This service is available at six 06 places at Hyderabad and customers are
facilitated through this service very effectively.

1.4 FUNCTIONS OF NATIONAL BANK OF PAKISTAN

The National Bank of Pakistan a commercial bank generally makes advances for a
period not exceeding one year, except in case of small and medium industries for
which advance may be made for a maximum period of five years. The bank makes
not only against the security of stocks and goods hypothecated or pledged to the
bank, but also against documents of goods and properly, shares are various joint
stock companies. Government securities. Insurance policies deposits receipts, etc.
The margin, and rate of interest are determined by several factors including the
type of security the size of loan and the integrity of the party
(http://www.nbp.com.pak)
.
The Bank is authorized to carry on kinds of banking business and is
empowered to make loans. It has also undertaken special financing operations
connected with Government prices support scheme. The bank also gives advances
loans, especially for agricultural products, such as cotton etc. It also safeguards the
valuable articles of people. It also arranges training programs for Bank officials.

It caters to the needs of the trade, industry & agriculture, both in

private &. public sectors. It participates in procurement of seasonal crops e.g.
-wheat, rice, cotton, sugar cane, etc. It also provides credit facilities to small
industrial units agriculture sectors as per credit mandatory targets fixed by the
State bank of Pakistan.
1.5 PURPOSE OF STUDY

The main & primary purpose of this study is to fulfill the requisite
requirements towards the completion of MBA degree. In this connection every
Student is Require undergoing an Internship of six weeks in any business
organization institution.

The business internship report is carried on to be familiarizing with

actual working conditions in any organization by physical & practical participation
in the business affairs.

For this, I went to the Regional & Head Office of National Bank of
Pakistan & wrote a report.

Secondly it is necessary for the Bachelor of Business Administration

that after acquiring through knowledge, we should acquaint ourselves with the
entire practical knowledge & experience, which we can only gain through visiting
any Organization & Conducting a detailed study.

Thirdly, the purpose of this study was to gain good amount of

confidence & to be come aware of the mechanism of National Bank of Pakistan by
working dealing with officials of the Bank.

Finally, the purpose was to know how National Bank of Pakistan plays
its role significantly in the development of financial & other industrial. There was an
ample chance for us in this study for learning about financing and banking
development in Pakistan.

1.6 METHODS OF STUDY.

For the preparation of this Internship report, I used two methods to

collect data, first primary data collection and second secondary data collection.

In secondary data collection I interviewed different officers and officials.

For this purpose, I paid many visits to National Bank of Pakistan's Regional Office
Hyderabad, National Bank of Pakistan Fatima Jinnah Road Branch
Hyderabad.

In conduct interviews from head of the different department of NBP

and all the information is collected systematically.
 For this purpose, I prepared the questionnaire and asked all the
detailed function and procure of their departments.

I interviewed following in charges.

1. Mr. HanifRajar (Area Manager)

2. Mr. Ghulam Murtaza Baloch (In charge Advances)
3. Mr. Atta Hussain Rajpar (In charge F.E. Dept:)
4. Mr. S. Ahmed Raza (In charge Admin)
5. Mr. Shahid (In charge Inspection)

All above officers have fully cooperated with me and provided all the
necessary information, which was required to me.

I have collected all the information by using both methods Primary &
Secondary data. All the necessary and relevant information was systematically
collected arranged analyzed for writing this internship report.

I am highly obliged and thankful to all the above Executive and

personnel of National Bank of Pakistan, who have provided all the assistance and
enabling me for the preparation of this report.

1.7 LIMITATIONS

During the course of study, I faced many difficulties in collecting the

recent and accurate information.

There are number of constraints encountered by me. Some of them

are as under:-

1. The Bank did not allow me to work practically in the bank, I was only bound
to ask questions to their in charge officers.
2. They gave me very limited period of time per day visit, which also caused
some difficulties in obtaining adequate information.
3. A good amount of information related to the books of account, which may be
beneficial for me were not provided.
4. The bank officials because of secrecy of the bank matters did not answer the
number of question.
5. The lower grade staff was not properly trained therefore they did not answer
accurately.
6. Majority of staff member did not give full attention and they were not
interest to provide me the functional and other operational details/ except
some officers who provide me full assistance.

Instead of all these difficulties, I have completed this work due to full
cooperation and assistance of earlier mentioned officers.
 CHAPTER # 02

INTERNAL FEATURES OF NBP

MANAGEMENT AND ORGANIZATIONAL STRUCTURE

2.1 MANAGEMENT AND HEAD OFFICE MANAGEMENT

Among seven member of group Chief Executive is called the

President. The Bank also has directors for superintendence and direction of its
business. The member of board consists of President. Who is Chief Executive and
six other directors as members appointed by the government.

The member of Board responsible for granting loans in the field likes agriculture
industry, housing and import export trade and to make the policy of the Bank (The
information about this chapter given by Nisar Ahmed Qazi (In charge deposit section).

2.2 ORGANIZATION AND HEAD OFFICE MANAGEMENT

In the National Bank of Pakistan's head office^ there are sixteen 16

separate division to deal with all the necessary problems separately, on the top of
all these divisions.

The details about these divisions are as under

(i) International Division.

This is again sub divided into 2 divisions.

1. Foreign Exchange and operation division.
2. Administration and Credit division.

An Executive Vice President also manager these divisions separately.

Finance and investment division (Economic Research & Cooperate Planning)

A Senior Executive Vice President also manager these divisions and

this section contains two divisions.

(ii) Finance and Investment Division.

 This division is further segmented into different wings and a senior
vice president looks after every wing.

(a) Investment &. resources wing

(b) Accounts, Planning & Budgeting Wing
(c) Govt: Debit Management wing.
(d) Publicity and Public Relation Wing
(e) Editorial Board Quami "Banker" Wing
(f) Reconciliation Wing

(ii) Economic Research and corporate Planning division.

This division does the work of economic research of the country.

This
division is also managed by an Executive Vice President.

(iv) Administration, Computer and Human Resources

Development Division.

From the name it is dear that is consists of three divisions namely.

(v) Administration Division.

This division is also divided into Establishment Wing, Staff Relation,

Central unit fraud and forgery and regulation wing. Personal Wing and Personnel
career planning wing.

(vi) Computer Division.

The division consists of computer wing and EDP audit, and procedure
and administration wing.

(vii) Human Resources Development Division.

This division supervises all the staff colleges, at Karachi, Islamabad,

Lahore and Peshawar.

All the above division supervised and under controlled by and

coordinates under a Senior Vice President.

(viii) Audit and Inspection Division.

There are two wings working under this division, which is.
 (a) Implementation Wing
(b) Regional Audit Chief.

This division deal with audit inspection of sub-ordinate offices

LAW, RECOVERY, LITIGATION DIVISION.

There are two divisions, which take part in this section.

(ix) Law Division

(x) Recovery & Litigation.
(xi) Customer Service Division.
(xii) Engineering & Maintenance Division
(xiii) Business Promotion and Marketing Division.

Credit Processing & Monitoring Corporate Credit Division.

Two divisions are joint together in this section they are.

(xiv) Credit processing & Monitoring Division.

This division is distributed according to different areas.

(a) N.W.F.P & A.K Sindh Balochistan Area Wing.

(b) Karachi Area Wing
(c) Special Credit Ceil and Punjab Area Wing.

(xv) Corporate Credit Division/Credit Policy Division.

This division segregated into two sections, to deal! them separately.

(a) Co-ordination section.

(b) Agriculture Financing Section.

(b). Field Management and Organization.

There are Four executives to supervise the bank maters of every

Province, as they are called provincial's chiefs. These Provincials Chiefs are
Responsible for the entire' banking in their provinces such as income, expenses
Advances and deposits.

The Regional Chief NBP Balochistan

Regional Chief NBP Punjab
Regional Chief NBP Sindh
Regional Chief NBP N.W.F.P & Azad Kashmir.

These provinces are again divided into regions, the regions are
controlled and management by regional heads, which are responsible for the
supervision in their circles and deal with the problem zones in their jurisdiction of
Branches and Staff.

The country has been divided into 19 (nineteen regions) by NBP to

facilitate its functions.

Sindh Province

1. Karachi Region-A

2. Karachi Region-B

3. Main Branch Karachi Region

4. Hyderabad Region

5. Sukkur Region.

NWFP Province.

6. Peshawar Region

7. Abbotabad Region

Azad Kashmir

8. Muzaffarabad A.K. Region

Balochistan Province

9. Quetta Region .

Punjab Province

10. Lahore Region-A

11. Lahore Region-B

12. Main Branch Lahore Region-C

13. Bahawalpur Region

14. Gujranwala Region
15. Sialkot Region
16. Faislabad Region
17. Multan Region
18. Rawalpindi Region
19. Islamabad Region.

These regions are also sub-divided into zones. The in charge of zone
is called Zonal Chief.

2.3 ORGANIZATIONAL STRUCTURE.

PRESIDENT

DIRECTORS / SEVPS

Provincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade-I, II, III

Clerical and non-clerical staff

 DEPARTMENT FUNCTION UNDER N.B.P

NBP has seven main departments for functioning of which whole

function of bank is depended or we can easy that all services are rendered through
these seven departments.

These departments are explained with their headings are as under:-

a). ADVANCE DEPARTMENT

Advance department receives the application from Intending
borrowers and submits the same application to the higher authority after processing
for approval the advances can be of following nature (Saeed Ahmed Khan)

a. Agriculture advance to farmers

b. Short terms advance to business man
c. Long term advance for setting industry
d. Medium term advance for working capital
e. Seasonal advance to cotton gingers Rice and sugar mills.

b). REMITTANCE DEPARTMENT

Bank promotes the facility of remitting funds within the country and
outside country within certain limits/ Usually money remitted through Demand
Draft/ Telegraphic and SWIFT transfer.

Always two parties are involved in this function one is receiver and
another is sender.

C). ACCOUNTS DEPARTMENT

Accounts Department maintains the fixed deposits receipts of the

depositor. Account department also keep income and expenses accounts. Account
department prepares the weekly and daily statements of the affairs of the branch
are first like a balance sheet (Operation Manager)

d). FOREIGN EXCHANGE DEPARTMENT.

1), Imports
 We sell our foreign exchange to the other country, which is called
such as we purchase the foreign goods from the others. Import is done through
letter of credit (L/C) by the importer. Letter of Credit is an undertaking given by the
importer bank to the exporter's bank.

2). Export

Export is to sell our goods to the other country and earn foreign
exchange. The bank provides facilities of exporting the commodities to the
manufactures of the goods of the country.

3). Foreign Remittance.

The bank provides the foreign remittance facilities to the student

studying aboard. Bank also provides foreign exchange in the shape of travelers
Cheques to the intending Visitors {Syed Qamar Hashmi (Assistant), Aijaz Ali Rathore, (OG-
III).Miss Razia (OG-III).
*
e). CLEARING HOUSE DEPARTMENT

The function of Clearing House department is to pass the cheque

presented by one branch of the bank to other branches of the banks. Clearing
house is usually set up on the big cities and is control by the State Bank of
Pakistan.

f). CASH DEPARTMENT

Cash department is backbone of the branch./ Cash department

receives the cash from depositors and makes the payment to the cheque holder,

g). MARKETING/BUSINESS DEVELOPMENT DEPARTMENT

Marketing Department is set up in the big branches in the commercial

banks. Generally the main functions of the marketing department are as under:

a). To introduce a valued client/depositors to the bank branch.

b). To bring a valuable business for the branch.
c). To provide the financial facilities to the sound position from the banks point
of view.
d) Marketing/ department plays very vital role in increasing the savings of the
bank.
e). The development of the branch depends upon effective marketing system.
f). Marketing department introduce institution among the persons. Generally the
manager of the branch deals himself in the marketing function.

Rafique Arbab (OG-II)

Syed Shah Nawaz (Assistant)
Moinuddin Muallian (OG-II!)
Mohammad Atiq Khan (OG-1)
Various Bank information circular.. No & Date. N/A
 CHAPTER # 03

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

3.1 COMPUTERIZATION

With a view to up grading and streamlining the working system of

NBP and procedure plans were under taking by the management to provide
microcomputer and electronic ledger. Card's machines to the larger branches of a
bank. This program will also be expended to the other smaller branches in coming
years. Utilization of the bank's mainframe computer at Head Office, which happens
to be the most sophisticated amongst all the banks in Pakistan is also progressing
to further upgrade the capacity of NBP in coming year.

1. DECENTRALIZATION

Under the direction of the government, operation of all nationalized

commercial banks were significantly centralized by setting up provincial head
quarter at Karachi, Lahore, Peshawer and Quetta, each headed by a member of
executive board, enjoying vast power.

The banks policy of decentralization of financial sanctioning authority

by delegation of powers to Regional and circle officers and credit committee,
resulted in improving efficiency and prompt attention to the need of the customers
on a country vide basic, Decisions had been quicker and service to client more
rapidly and effectively available as a result to this policy.

This scheme, which has been well received by the business community
and the various chambers will be beneficial in quick disposal of credit facilities all
provincial level and will also help in solving the problem and grievances of the
customers more effectively. Service to clients will also be improved {Various NBP
information circulars No: and dale not available)

2. FOREIGN TRADE AND OPERATION

National Bank of Pakistan played an active role in handling the

countries export and imports.

The growth of international business operations depends causally and

expansion of foreign contacts. The bank already has 22 overseas branches in
important business located areas of the world, The NBP also looking forward to
open some new branches in foreign countries.
 Errors are also underway to strengthen out relationship with banks in
central Asia and to establish joint ventures with the bank of that area political and
financial stability is restore. National bank will try to establish branches there.

3.2 PROGRESS IN ISLAMIZATION OF BANKING

After the introduction of profit and loss sharing scheme on a limited

scale in January 1981. The Federal Government in 1984 announced a major policy
decision that by the end of June 30 1985 all the domestic operated banks and
financial institutions will be on NIB system. This objective has been achieved from
st
1 July 1985; all banking operations have been switched over to NIB system. In the
final stage from July 1,1984 saving deposits have been convert on profit and loss
sharing basis from this date on words the bank is not accepting fixed period
deposits on interest basis.

It should not be considered the end of the mission as mush more

remains to be achieved, Until June 1985, none interest basis investment
opportunities were more, while NIB liabilities were comparatively less. But now
after complete switch over the reverse in the position. But further continuous
research and dedicated efforts are necessary art national level so that Pakistan may
present, before the world a system which is really new/ dynamic and in accordance
{M.Han/f'Rajer (Admin. Manager)
 CHAPTER # 04
TRAINING AND FACILITIES TO STAFF

4.1 TRAINING TO STAFF

In 1949, the first year of operations the NBP has one hundred
employees on its payroll but with in two years this number had grown to 1505 by
1960 the figure has risen, to 5023 and now in 2006 it is the order or 22356.

During the first ten years the NBP trained its own staff through a
series of training programme both for junior officers and clerical staff. By 1958
however it was obvious that one thins more comprehensive was needed and the
bank established a staff college Karachi. Three mote colleges at Islamabad, Lahore
and Peshawar, setup later.These colleges provide course of instructions,supervisor
personnel and clerks to meet the Bank's ever growing trained personnel.This needs
springs not only from the steady grown for the bank's business but also to replace
wastage due to retirement resignation, ill health or death.

The staff college receives junior bank officers for further training in
banking the course lasting from six to nine weeks with about twenty-five students
in each course.

The staff college course are designed not only to impart technical
instruction, but also develop qualities of judgments decisions, leadership and
management, since these student are likely to be those men who may expect to
these senior most executive positions the bank has to offer.

The bank also deputes officers to attend banking seminar both in

Pakistan and abroad and it attaches great importance to the exchange of ideas
information and knowledge, which can most use fully accrue from these gatherings.

In its position the National Bank has considerable responsibility in

ensuring that the country is well represented at meetings of bankers at domestic
and international level.
4.2 SALARIES AND FACILITIES TO STAFF

As an employer NBP is also deeply conscious of as responsibilities and

act it be said that at the out set/ consider its self a good employer. Its seals of pay
terms of services, staff benefits and amenities compare very well with instruction of
similar stature in Pakistan.

The result is that employment with the bank has come to be regarded
as some thing of prize. The scale of pay and allowances for officers and staff are
revised from time to time as need grows. In addition employment with bank
personable and bonuses are regularly paid.

The bank provides free medical treatment for all its employers, their
families and dependent parents. A senior member of the medical profession acts as
Medical Advisor and medical consultant {Mr. Noman Ahmed)

The bank pays school fees for the children of all the supervisory,
electrical and subordinate staff and this facility is extended to college fees also.

To meet the problem of fining suitable residential accommodation in

the big cities. NBP has had recourse to several measures in Karachi and Lahore for
instance the bank has constructed residential quarters. NBP has granted loans on
easy terms to members of staff to enable them to construct houses of their own.

To solve the problems of conveyance for its employees the bank

makes advances to staff for the purchase of cars motorcycles and cycles.

The bank has provided finance for the establishment of sports clubs
and staff recreation centers, to enable staff sport clubs and other suitable
recreational activities to flourish. Co-operative stores and subsidized canteens help
the lower paid categories to get the best value form their earnings.
 CHAPTER # 05
FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE OPERATED
BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits,

1. Current deposits
2. PLS Saving deposits
3. Fixed deposits account (Time Deposit)
4. Foreign Currency Account

1. CURRENT DEPOSIT

For current deposits NBP open the account in the name of individual
Proprietary firms/ partnership firm, private limited companies clubs, association
societies and other institutions. The account can be operated by single or two more
persons jointly as the instructions may be given at the time of opening the account.

If the person who wants to open the account is not in position to sign
or signature is not firm or shaky the bank requires is photographs and he has to
come in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the account
usual not be less then Rs.1000/-

But his restriction is not imposed to the accounts of charitable

institutions and the account opened in the month of closing i.e. June &
December(waqarullah Khan (OG-III)

1. PLS SAVING ACCOUNTS

The silent features of profit and loss sharing saving accounts to be

opened in NBP are as under.
1. These accounts can be opened by individuals in their own single or
joint name. The PLS saving accounts can also be opened for provident
fund or other benevolent funds of companies, firms, organizations of
welfare and educational institutions.
2. PLS saving account can be opened with the minimum amount of Rs.
500/- only
3. Money can be with drawn form PLS saving account only through
cheque.

4. To share in the profit a minimum balance of Rs.500/- must be

maintained in an account. The minimum balance on sixth and last of
month will qualify for the profits.

5. The profit will be calculated on the basis of monthly minimum balance

for the period of six months i.e. from January to June and July to
December

6. The head office of NBP determines the profits or loss on PLS saving
deposits and advice its branches the rate and time of distribution of
these profits concerned PLS saving account

7. With drawls from PLS saving accounts are allowed not oftener then 8
time in a calendar month and for a total amount not exceeding Rs.
1500/- for withdrawal of a large amount seven days not in writing is
required to be given. This notice shall not how ever affect the monthly
with draw ordinarily allowed. In the even of contravention of rule.
Depositors shall forfeit his right to share profit for he notice period
shall be deducted from his total profit earning products.

8. They shall be no restrictions on maintaining the maximum balance in

PLS saving account.

9. On the first of Ramzan every year the Zakat of 2.5% will be recovered
from the deposits on the balance of that day. But if depositors give
declaration of Zakat or he is non-mulsim no Zakat will be recovered
from him in the same day Zakat is not recovered from account in
which the balance are below upto prescribed limit as declared by the
administrator of Zakat Pakistan Act system of accepting deposits has
been stated in NBP since 01-01-1981.

Mr. Nisar Ahmed Qazi (OG-HI)

2- PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED
DEPOSrTA/C

In the case of fixed deposit account deposit is made for a fixed period
and a money deposited can be with drawn before the expire of period fixed or
before giving an advance notice to the Bank. Fixed deposit caries a higher rate of
interest than the other type of bank account and the rate of interest rises with the
length of the period and the amount of deposit.

One opening a fixed deposit account the bank grants to the depositor
a fix deposit (FDR), which is not transferable to any other person. When the
depositor with drawn the receipt must be handed back to the bank.

The silent features of profit and loss sharing term deposit excepted by
NBP are given as under.

1. The PLS term deposit are excepted from individual in their own single or
joint names, companies firms and other organization.

2. The PLS term deposit receipt are issued for any amount. There is minimum
or maximum limit or deposits in a single term deposit account.

3. The term deposit can be made by tendering cash only.

\4. PLS terms depositors may be allowed some facilities against the security of
these receipt credits, after making "Lien" on the relevant receipt and subject
to recovery of a service charge.

5. Under term deposit scheme the depositors not cease to earn the profit
immediately, after the respective maturity date, but they have been afford a
liberal facility. In case the depositors said to with draw their terms deposits
on maturity their funds will remain temporarily in used and on profit earned
a responsible share would occur to such over due PLS terms deposits at the
rates declared on PLS sharing account.

6. The head office of the bank determine the profit or loss on PLS terms deposit
at by any one intervals i.e. the end of June and December each year and
payment of profit to or deduction of loss if any from the PLS terms deposit is
to be made the deposits for longer period will earn a little more profit then
those of shorter period deposits.

7. The total profit up to R.s.950/- is exempted from income tax

8. In the case of encashment before maturity but after completion of months
profit will be paid for the entire period for which the deposit remained with
bank at the rates payable for the respective period to the PLS saving account
after deduction of the Zakat if any,
9. In PLS term deposit expired and the depositors request with in one month
after the expiring date, for investment. The PLS terms deposit will be
reinvested for the desire period from the date immediately following expiring
date.
10. Zakat or the face value PLS term deposit will be recovered as may time as
the valuation dates (i.e 1st Ramzan) falls between the date of issue and the
date of expiry of the deposit.

{Abdul Hameed Bhutto (OG-III)

3- FOREIGN CURRENCY ACCOUNT.

NBP has also introduced foreign currency accounts for Pakistan and
foreign Nation in Pakistan and abroad.This scheme assures its customers on better
profit and superior service.

1. It offers Pakistani or foreign National to operate a foreign currency A/C with

any one of their authorized branches spread all over the country.
2. Deposits of this accounts will be acceptable in all convertible currency but
account wiil be maintained on the customers choice in USD Dollar, pounds
German Mark or Japanese Yen.
3. Deposits may be made in the forms of remittances in foreign currencies.

Travelers cheque on the bank counter will be accepted.

4. The customer can make with drawls and transfers to any where in the world.
5. Ali the deposits and profits in the customer's foreign account are except from
Zakat income or wealth tax.
6. The customer's sources are protected from any scrutiny of concerned
authorities.

The NBP has over 1400 branches at home and abroad of these more
than 100 branches are authorized and fully equipped to deal with al! kinds of
foreign currency transactions.
NBP has worldwide network of branches and it has associated in
Arabia bank/ All Jazria (26 branches) and national exchange company in UAE to
facilitate the customers in Pakistan, Saudi Arabia and UAE {Atta Hussain Rajpar
(OG-
III)

3- FUTURE OUT LOOK OF NATIONAL BANK.

NBP is fully aware of the developments taking place in the world 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 goals and strategy
as well as by the adjustment of its operational policies.

The Bank planning to institute major improvements, especially in

customer service launch innovative products to ensure that the bank continues to
play a dynamic role in the development of the country.
 CHAPTER # 06

CONCLUSIONS

At The Completion Of The Business Internship The

Internee Draws The Following:

1. It appears a lengthy process of sanctioning advances.

2. It seems that the staff members are not properly trained

3. It seems that the promotions are not given in the due time.

4. It appears that large amounts are paid on administration cost.

5. It might not be possible for every borrower to repay the loan /

money in due time.
 SUGESTIONS

On the basis of conclusion internee draws the

following suggestions:-
1- It is suggested that the process should be shorter in order to save
time, money, energy and stationary etc.

2- It is proposed that proper training should be provided to the staff

members that will ultimately increase the performance of Bank over all.

3- It is advised that promotion should be given in due time because of

interest to work satisfactory.

4- It is consulted that bank should reduce its large expenses in order to

increase the value of bank.

5- The NBL should establish the new counters in order to confront with
the hectic business activities. It will also help to reduce the extra load
of manual work.

6- ' The period of repayment of the loans should be extended.

REFERENCES

1. By Greener Michael The Penguin Business Dictionary

Edition 1995 Page No.10
nd
2. By Muhammad Rauf Beg Money and Banking 2 Edition 1993
Page No.55.
3. By Mukhtiar Ahmed Introduction to Money and Banking 1st
Edition 1995 Page No.60
4. By israr-ui-Haq Banking Law and Practice

5. By Dr. Syed Anwar Ali Banking 1st Edition Page No.02

6. Annual Report of NBP

2003,2004,2005.

7. History of National Bank of Pakistan/1998 by: (N.B.P Management

Division)

8. Mr. Hanif Rajer/ Area Manager

9. http://www.nbp.com.pak
10. Mr. Ghulam Murtaza Baloch, In charge Advances (OG-I)
11. Nisar Ahmed Qazi (In charge Deposit Section)
12. Atta Hussain Rajpar (In charge F.E Department)
13. S. Ahmed Raza/ In charge Admin (OG-HI)
14. Miss Razia (OG-III)
15. Mr. Shahid (In charge Inspection)