CHAPTER # 01

1. INTRODUCTION

The National 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 net-work 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

1
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. The well equipped research department to work on the
cdeveloping tredns 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 forty 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.

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 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.
Source: http://www.nbp.com.pak

2. HISTORY 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 set up this Bank some time in early 1950, but the
critical situation that developed in the jute trade as a result of India’s refusal
to accept the exchange rate of the Pakistan Rupee, following the
devaluation of its own and the sterling functioning Dacca and opend its
offices at five important jute centers namely Narayanganj, Chandpur,
Rangpur and Khulna, in the East Pakistan.

The Bank advamced 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.

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 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 the
necessary Credit facilities to the trade and the crisis was tided over.
Source: 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.
Source: http://www.nbp.com.pak

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 The general direction and superintendence of the affairs and
business of the bank vests in this executive board. In 1980, the Federal
Government constituted a 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.

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.
Source: http://www.nbp.com.pak/
To day it provides the largest network of offices in the
country, 1436. Being in Pakistan and 22 aboard. 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 en cashable at a branch of the bank in Pakistan.

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1. 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.
Source: 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.

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PURPOSE OF STUDY

The main & primary purpose of this study is to fulfill the

requisite requirements towards the completion of MPA (Hons) 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 & written report.

Secondly it is necessary for the Public Administration Degree

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.

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2. 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 questioner and asked all the
detailed function and procure of their departments.

I interiewed following incharges.

1. Mr. Kauro Khan Memon (Area Manger)

2. Mr. Ghulam Murtaza Baloch (Incharge Advances)
2. Mr. Naeem Ahmed Shaikh (Incharge F.E.
Dept:)
3. Mr. Saulat Hussain (Incharge
Admin)
5. Mr. Sohail Ahmed (Incharge Inspection)
6. Aijaz Hussain Rathore (Export)
7. Jamshed Ali (Export).

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 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 to 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.

3. LIMITAIONS

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 fid not allow me to work practically in the

bank, I was only bound to ask questions to their incharge officer.
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
maters did not answer the number of question.

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 5. The lower grade staff was not properly trained
therefore they have been answered accurately.
6. Majority of staff member have not give full attention
and they were not interest to provide me the functional and other
operation 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.

10
 CHAPTER # 02

INTERNAL FEATURES OF NBP

MANAGEMENT AND ORGANIZATIONAL STRUCTURE

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 members 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.
Source: The information about this chapter given by Soulat Hussain (Admin. Manager)

A- 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

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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.
3. 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

4. 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.

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Administration, Computer and Human Resources Development
Division.
From the name it is clear that is consists of three divisions
namely.

5. 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.

6. Computer Division.

The division consists of computer wing and EDP audit, and

procedure and administration wing.

7. 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.

8. 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

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2- LAW, RECOVERY, LITIGATION DIVISION.

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

9. Law Division
10. Recovery & Litigation.
11. Customer Service Division.
12. Engineering & Maintenance Division
13. Business Promotion and Marketing Division.

Credit Processing & Monitoring Corporate Credit Division.

Two divisions are joint together in this section they are.

14. Credit processing & Monitoring Division.

This division is distributed according to different areas.

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

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

15. Corporate Credit Division/Credit Policy Division.

This division segregated into two sections, to deal them

separately.

(a) Co-ordination section .

(b) Agriculture Financing Section.

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b). Field Management and Organization.

There are four executive 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 Punjabn
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 dividedm into 19 (nineteen regions) by

NBP to ficilitate its functions.

Sindh Province

1. Karachi Region-A
2. Karachi Region-B
3. Main Branch Karachi Region
4. Hyderabad Region
5. Sukkur Region.

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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 incharge

of zone is called Zonal Chief.

16
3- ORGANIZATIONAL STRUCTURE.

PRESIDENT

DIRECTORS/ SEVPS

Procincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President
Source: Soulat Hussain (Administration Manager)
Assistant Vice President

Officer Grade-I,II,III

Clerical and non-clerical staff

4 DEPARTMENT FUNCTIONING 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.

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 These department are esplained 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.
Source: Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)
Source: Shafqat Ali Mahesar (OG-III)
Source: Mr. Khadim Ali lund Baloch (OG-III)
Source: 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

18
accounts. Account department prepares the weekly and daily statement of
the affairs of the branch are first like a balance sheet.
Source: Altaf Ahmed (OG-III)

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 provide 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.

Source: Syed Qamar Hashmi (Assistant)

Source: Aijaz Ali Rathore, (OG-III)
Source: 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.

19
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.
Source: Rafique Arbaba (OG-II)
Source: Syed Shah Nawaz (Assistant )
Source: Moinuddin Muallian (OG-III)
Source: Mohammad Atiq Khan (OG-I)
Source:Various Bank information circulars. No & Date N/A

CHAPTER # 03
ACTIVITIES OF NATIONAL BANK OF PAKISTAN

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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.

2. 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

21
and grievances of the customers more effectively. Service to clients will
also be improved.

Source: Various NBP information circulars No: and date not available

3. FOREIGN TRADE AND OPERATION

National Bank of Pakistan played an avtive 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 under way 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.

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

22
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 1st 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
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.

Source: Soulat Hussain (Admin. Manager)

CHAPTER # 04
TRAINING AND FACILITIES TO STAFF

1. TRAINING TO STAFF

In 1949, the first year of operations the NBP has one hundred
employees one its payroll but with in two years this number had grown to

23
1505 by 1960 the figure has risen to 5023 and now in 1996 it is the order or
20694.

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 how ever 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 judgements decisions,
leadership and management, since these student are likely to be those men
who may expect to the seniors 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 accure from
these gatherings.

24
 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.

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 seales 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.
Source: Mr. Noman Ahmed
Source: Mr. Khadim Ali Baloch
The bank pays school fees for the children of all the
upervisory, electrical and subordinate staff and this facility are extended to
college fees also.

To meet the problem of fining suitable residential

accommodation in the hig cities. NBP has had recourse to several measures
in Karachi and Lahore for instance the bank has constructed residential

25
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 carnings.

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)

26
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. Single or two can operate
the account 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.
Source: Waqarullah Khan (OG-III)

2. PLS SAVING ACCOUNTS

The silent features or profit and loss sharing saving accounts
to be opened in NBP as under.

1. These accounts can be opened by individuals in their own

single are joint name. The PLS saving accounts can also be
opened for provident fund or other benevolent funds of

27
 companies, firms, organizations of welfare and educational
institutions.

2. PLS saving account can be opened with an 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 a account. The minimum balanced 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 calancer 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. depsositors shall
forfeit his right to share profit for he notice period shall be
deducted from his total profit earning products.

28
8. The shall be no restrictions on maintaining the maximum
balance in PLS saving account.

9. On the fist of Ramzan every year the Zakat 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

10. NBP since 01-01-1981.

Source: Mr. Nisar Ahmed Qazi (OG-III)
Source: Mr. Imtiaz Ahmed (OG-III)

3- PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED

DEPOSIT A/C

29
 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.

The PLS term deposit are excepted from individual in their

own single or joint names, companies firms and other organization.

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

Tendering cash can make the term deposit only.

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.

30
 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.

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.
The total profit upto Rs.950/- is exempted from income tax
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.
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.

Zakat or the face value PLS term deposit will be recoverd as

may time as the valuation dates (i.e Ist Ramzan) falls between the date of
issue and the date of expiry of the deposit.
Source: Abdul Hameed Bhutto (OG-III)

31
 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.

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.
Deposits of this accounts will be acceptable in all convertible
currency but account will be maintained on the customers choice in USD
Dollar, pounds German Mark or Japanese Yen.
Deposits may be made in the forms of remittances in foreign
currencies.

Travelers’ cheque on the bank counter will be accepted.

The customer can make with drawls and transfers to any

where in the world.
All the deposits and profits in the customer’s foreign account
are except from Zakat income or wealth tax.
The customer’s sources are protected from any scruitny 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 all
kinds of foreign currency transactions.

32
 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.
Source: Atta Hussain Rajpar (OG-III)

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.

33
 CONCLUSIONS
At the completion of the business internship the interence

draws the following:

It appears a lengthy process of sanctioning advance.
It looks the staff member are not properly trained
It seems the promotion are not given in the due time.
It appears that large amounts paid on administration
cost.
It shows that there is lack of recovery system
It seems that there is no net working.
It seems that there shall be a great the rush days for
the customers as well as for the staff members If the No of
counter are limited or very few
It might not be possible for every borrower to repay
the money in due time.

34
 SUGESTIONS

On the basis of conclusion interence draws the following

suggestions

1- It is suggestion that the process should be short in order in save time

money energy and stationary etc.

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

that will ultimately increase the performance of Bank over all.

3- It is advised that promotion 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- It is suggested that reasonable steps should be taken to recover all

absolute advances.

6- The NBL should introduce the use of computers in order to confront

with the nectic business activities. it will also help to reduce the extra
load of manual work.

7- Extra counters should be brought in order to facilitate during the rush

days the difficulties faced by the bank staff as well as the customers.

8- The period of repayment of the loans should be extended.

35
 REFERENCES

1. By Greener Michael The Penguine Business Dictionary Edition

2. By Muhammad Rauf Beg
3. By Mukhtiar Ahmed
4. By Israr-ul-Haq
5. By Dr. Syed Anwar Ali
6. Annual Report of NBP
2006
1995 Page No.10
Money and Banking 2nd Edition 1993
Page No.55.
Introduction to Money and Banking Ist
Edition 1995 Page No.60
Banking Law and Practice
Banking Ist Edition Page No.02

INFORMED BY

1. History of National Bank of Pakistan,1998 by: (N.B.P Management

Division)
2. Perwaiz Ali khowaja (Manager Admin)
3. http://www.nbp.com.pak
4. Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)
5. Shafqat Ali Mahesar (OG-III)
6. Mr. Khadim Ali lund Baloch (OG-III)
7. Saeed Ahmed Khan
8. Altaf Ahmed (OG-III)
9. Syed Qamar Hashmi (Assistant)
10. Aijaz Ali Rathore, (OG-III)

36
11. Miss Razia (OG-III)
12. Rafique Arbaba (OG-II)
13. Syed Shah Nawaz (Assistant )
14. Moinuddin Muallian (OG-III)
15. Mohammad Atiq Khan (OG-I)
16. Various Bank information circulars. No & Date N/A
17. Various NBP information circulars No and date not available
18. Islamizationa of Banking
19. Mr. Noman Ahmed
20. Mr. Khadim Ali Baloch
21. Waqarullah Khan (OG-III)
22. Mr. Nisar Ahmed Qazi (OG-III)
23. Mr. Imtiaz Ahmed (OG-III)
Abdul Hameed Bhutto (OG-III)
Atta Hussain Rajpar (OG-III)

37
CONTENTS

CHAPTER NO. 1

INTRODUCTION

1. Introduction

2. History & Management of National Bank of Pakistan

3. Objective of National Bank of Pakistan

4. Functions of National Bank of Pakistan

5. Purpose of Study

6. Methods of study

7. Limitation.

CHAPTER NO.2

INTERNATIONAL FEATURES OF NATIONAL BANK OF

PAKISTAN

1. International Features of National Bank of Pakistan

2. Law Recovery, Litigations Division

3. Organizational Structure

4. Departments Functioning under National Bank of Pakistan

38
CHAPTER NO.3

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

1. Computerization

2. Decentralization

3. Foreign Trade & Operation

CHAPTER NO.4

TRAINING AND FACILITES OF STAFF

1. Training to Staff

2. Salaries & Facilities of staff

CHAPTER NO.05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE

OPERATED BY NATIONAL BANK OF PAKISTAN.

1. Current Deposit

2. PLS Saving Account

3. Future Outlook of National Bank of Pakistan

CHAPTER NO.6

39
CONCLUSION AND SUGGESTIONS

4. Conclusion

5. Suggestions

6. Reference

40
 INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE

This is to certify that Business Internship Report on NATIONAL

BANK OF PAKISTAN has been prepared,

MR, AFZAL HUSSAIN UMRANI S/O DIN MUHAMMAD UMRANI

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 research has been inetienlously carried out and
fulfils all the requisite conditions.

Sir. Zahi Hussain Kazi Dr. Anwar Ali Shah G. Syed

Assistant Professor &
Internship Guide Professor & Director
IBA, University of Sindh, IBA, University of Sindh
Jamshoro Jamshoro

41
 DEDICATION

This humble effort is

dedicated
to my beloved parents,
whose love and efforts
can never be forgotten.

42
 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 Director, Institute of Business Administration Dr.
Anwar Ali Shah, G.Syed and guide Mr. Perwaiz Ali Khowaja without
whose 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 experess my heart-full gratitude to the executive

and staff member of National Bank of Pakistan, Market 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”

M.B.A (FINAL) 2006

Institute of Business Administration
University of Sindh,
Jamshoro.

43