Research Methodology The report is based on my two months internship program in National Bank of Pakistan.

The methodology reported for collection of data is primary as well as secondary data.The biggest source of information is my personal observation while working with staffand having discussion with them. Formally arranged interviews and discussions alsohelped me in this regards. Primary data: Personal observation Interviews of staff Secondary data:

Brief History of Banking and NBP The partition plan was announced on June 3, 1947 and August 15, 1949 wasfixed as the date on which independence was to take effect. It was decided thatthe Reserve bank of India should continue to function in the dominion of Pakistanuntil September 30, 1948 due to administrative and technical difficulties involvedin immediately establishing and operating a Central Bank.At the time of partition, total number of banks in Pakistan were 38 out of thesethe commercial banks in Pakistan were 2, which were Habib Bank Limited andAustralia Bank of India. The total deposits in Pakistani banks stood at Rs.880million whereas the advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the order for the establishment of StateBank of Pakistan on 1st of July 1948.In 1949, National Bank of Pakistan was established. It started with sixoffices in former East Pakistan. There were 14 Pakistani scheduled commercialbanks operating in the country.The Pakistan Banking Council prepared banks amalgamation schemes in1974 for amalgamation of smaller banks with the five bigger banks of the country.These five banks are as under: National Bank of Pakistan Habib Bank Limited United Bank Limited Muslim Commercial Bank Limited Allied Bank Limited So , th rou gh th e nat io na liza tion of B an k A ct 197 4, the St ate Ban k of Paki stan, all the commercial banks incorporated in Pakistan and carrying on business in or outside the country were brought under the government ownershipwith effect from Jan. 1, 1974. The ownership, management, and control of all banks in Pakistan stood transferred to and vested in the Federal Government.The Finan ce Min iste r announ ced p lan s to start I slamic Ban kin

g system in Pakistan in the budget speech on June 26, 1980, but it could not be possible tillAugust, 2003.

Definitions of Bank Bank "A financial institution, which deals with money and credit. It accepts Deposits from individuals, firms and companies at a lower rate of Interest and gives at higher rate of interest to those who need them.2 A financial establishment which uses money deposited by customers for investment, pays it out when required, makes loan at interest, exchanges currency, etc. J.W Gilbert in his principles and practice banking defines a banker in these words: A banker is dealer in capital or more properly, a dealer in money. He is intermediate party between the borrower and the lender. He borrows of one and lends to another.3 Sir John Paget defines banker in these terms: That no person or body, corporate or otherwise, can be a banker who does not 6Take deposits accounts. 7Take current accounts, 8Issue and pay Cheques and 9Collect Cheques crossed and uncrossed for his customers4 (The law of Banking by Sir John Paged, page 51). The American defined the term banker in a very broad sense as under: By banking, we mean the business of dealing in credits and by a Bank we include every person, firm or company having a place of business where credits areopened by deposits of collection of money or currency. Subjects to be paid or remitted onCheques or order, money is advanced or loaned on stocks, bonds, bullion, bill of Purpose of the Studies The main of the study in hand is together relevant information to compile internship report on National Bank of Pakistan.

To observe, analyze and interpret the relevant data competently and in a useful manner. 2To work practically in an organization. 3To develop interpersonal communication. Scope of Studies As an internee in National Bank of Pakistan the main focus of my study research was ongeneral banking procedures in one of the branches of NBP. These operations includeremittances, deposits, advances and foreign exchange. Similarly different aspects of overall of NBP are also covered in this report. 1.4 Research Methodology The report is based on my two months internship program in National Bank of Pakistan.The methodology reported for collection of data is primary as well as secondary data.The biggest source of information is my personal observation while working with staffand having discussion with them. Formally arranged interviews and discussions alsohelped me in this regards. 4 Primary data: Personal observation Interviews of staff 5 Secondary data: Manuals Journals Magazine Annual reports Internet