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Internship Reporton National Bankof Pakistan NBP1
Internship Reporton National Bankof Pakistan NBP1
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Internship Report on National Bank of Pakistan (NBP)
Table of contents
Executive summary 04
Mission statement 05
Vision 07
Senior Management 09
Overseas Branches 12
Domestic Branches 13
NBP loan 15
Services 17
Investments 20
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Deposit products 23
Exchange rates 25
SWOT analysis 27
Performance analysis 30
Comparative analysis 36
Bank charges 38
Work done by Internee 61
Problems faced by Branch 65
Bibliography 68
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1. Executive Summary
This report is based on internship in National Bank of Pakistan branch name. It is a famous and reputed
bank of Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. This
report is based on the activities which are performed in this bank. This report contains marketing
analysis, competitive analysis, SWOT analysis, bank tariffs and exchange rates of National Bank of
Pakistan. There are also stated the activities which I performed during my internship in the branch. In
this report also discuss the industry analysis of banking system in Pakistan. There are also mentioned
the way of investment, rates of investment, all types of financing and loans facilities the National Bank
of Pakistan provides. The problems in this branch are also discussed. This report also intimates about
the daily reserves which are required by the branch to meet the need of its daily transactions.
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2.1. Mission Statement
To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a
powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living
out our core values.
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2.2. Core Values
2.2.1. We aim to be an organization that is founded on
Growth through creation of sustainable relationships with our customers.
Prudence to guide our business conduct.
A national presence with a history of contribution to our communities.
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2.2.2. We shall work to
Meet expectations through Market-based solutions and products.
Reward entrepreneurial efforts.
Create value for all stakeholders.
2.2.3. We aim to be peopling who
Care about relationships.
Lead through the strength of our commitment and willingness to excel.
Practice integrity, honesty and hard work. We believe that these are measures of true
success.
2.2.4. We have confidence that tomorrow we will be
Leaders in our industry.
An organization maintaining the trust of stakeholders.
An innovative, creative and dynamic institution responding to the changing needs of the
internal and external environment
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2.3. Vision
To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the
quality and delivery of service as well as the range of product offering
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2.4. Senior management
Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group
Shahid Anwar Khan SEVP & Group Chief, Commercial & Retail Banking Group
Dr. Asif A. Brohi SEVP & Group Chief, Operations Group
Muhammad Sardar Khawaja SEVP & Group Chief, Audit & Inspection Group
S. M. RafiqueSEVP & Secretary Board of Directors
I mam Bakhsh Baloch SEVP & Group Chief, Compliance Group
Ziaullah Khan SEVP & Group Chief, Special Assets Management Group
Amim Akhtar EVP & PSO to the President
J aved Mehmood EVP & Group Chief, Risk Management Group
Muhammad Nusrat Vohra EVP & Group Chief, Treasury Management Group
Nadeem A. Dogar EVP & Group Chief, Information Technology Group
Dr. Mirza Abrar BaigEVP & Group Chief, Human Resources Management & Administration Group
Mrs. Khurshid Maqsood Ali EVP & Divisional Head Employee Benefits, Disbursements & Trustee
Division
Tahir Yaqoob EVP & Group Chief, overseas Coordination & Management Group
Mrs. Uzma Bashir Group Chief, Organization Development & Training Group
Syed Farhan Ahmed Financial Controller & Divisional Head Financial Control Division
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2.5. Corporate and financial reporting framework
(Code of Corporate Governance)
The board is fully aware of its responsibilities established by the Code of Corporate Governance issued
by the Securities & Exchange Commission of Pakistan (SECP). They are pleased to give the following
declarations/statements to comply with the requirements of the Code.
1. The financial statements (Balance sheet, Profit and Loss Account, Cash Flow
Statement, Statement of Changes in Equity and notes forming part thereof), prepared by
the management of the bank give the information required by the Companies Ordinance,
1984 in the manner so required and respectively give a true and fair view of the state of
the bank's affairs as at December 31, 2002 and of the results of its operations, changes in
equity and its cash flows for the year then ended.
2. Proper books of accounts have been maintained.
3. Appropriate accounting policies have been consistently applied in the preparation of the
financial statements and accounting estimates are based on the reasonable and prudent
judgment.
4. Approved Accounting Standards have been followed in preparation of the financial
statements and there is no departure from the said standards.
5. The system of internal control is sound in design and has been effectively implemented
and monitored throughout the year. The Board is responsible for establishing and
maintaining the system of internal control in the bank and for its ongoing monitoring.
However, such a system is designed to manage rather than eliminate the risk of failure to
achieve objectives, and provide reasonable but not absolute assurance against material
misstatements or loss.
The process used by the Board to review the efficiency and effectiveness of the system of internal
control includes, the following:
The Board has formed an audit committee comprising of three non executive directors.
The audit committee has written terms of reference in the form of a charter, which has
been approved by the Board of Directors. The committee is responsible for the oversight
of the internal audit function and reviews its approach and methodology from time to time.
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It also receives and reviews the internal and external audit reports relating to the internal
control, accounts and related matters. The committee on a continuous basis reviews the
material control weaknesses and areas of concern and actions to be taken by the executive
management to address these issues.
Internal audit department of the bank conducts the audit of all branches, regions and
groups at head office level on ongoing basis to evaluate the efficiency and effectiveness of
internal control system and proper follow up of irregularities and control weaknesses is
carried out.
The Board receives confirmations/representations from all group and regional heads on
annual basis confirming effectiveness of the internal control system established and
maintained by them within their function.
The principal features of the bank's control framework include:
The bank has clearly defined organizational structure which supports clear lines of
communications and reporting relationships.
There exists a properly defined financial and administrative power of various committees
and key management personnel, which supports delegation of authority and accountability.
The bank has effective budgeting system in place. Annual budget of the bank is approved
by the Board and monthly comparisons of actual results with the budget are prepared and
reviewed by the senior management.
The bank has a comprehensive framework of written policies and procedures on all major areas of
operations such as Credit, Treasury Operations, Finance, Internal audit and Compliance approved by
the Board.
There are no significant doubts about the bank's ability to continue as a going concern.
There has been no material! Departure from the best practices of the corporate
governance as detailed in the listing regulations.
Key operating and financial data is available in the annual report.
The number of board meetings held during the year were 14 and attended by the directors
as follows:
Syed Ali Raza 14
Dr. Waqar Masood Khan 10
Kamran Y. Mirza 8
A. Razzak Tabba 12
Rizwan A. Kehar 12
Qazi Faez Issa 10
Sheikh Humayun Sayeed 12
Book value of investments of Employees' Pension Fund as at December 31, 2002
(un-audited) is Rs. 6,317.705 million.
The pattern of shareholding as required by the code is as follows:
Associated companies, undertakings and related parties Total No. of
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shares held
Taurus Securities Limited 2,015
National Bank of Pakistan Trustee Department -NIT 1,009,842
Investment Corporation of Pakistan 1,519,095
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16 Overseas Branches
4 Representative Offices
1 Subsidiary
1 J oint Venture
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29 Regional Offices
1,189 Branches
130 Online Branches
4 Subsidiaries
2.6. Overseas Branches
2.6.1. America and Europe Region
USA
Canada
Germany
France
2.6.2. Far East Region
Hong Kong
Japan
South Korea
China
2.6.3. Middle East, Africa & South Asia Region
Bahrain
Egypt
Bangladesh
EPZ
2.6.4. Central Asian Republics
Afghanistan
Turkmenistan
Kyrgyz Republic
Kazakhstan
Uzbekistan
Azerbaijan
2.7. Domestic Branches
2.7.1.Sind
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Dadu/ Sanghar
Hyderabad
Jacobabad/ Shikarpur
Karachi
Larkana
Mirpurkhas/ Badin
Nawabshah/ N' Feroze
Sukkur/ Khairpur
Tharparkar
2.7.2. Punjab
Bahawalpur
D.G. Khan/ RYKhan
Faisalabad
Gujranwala
Sialkot/ Narowal
Islamabad
Jhang
Jhelum/ Gujrat/ Chakwal
Lahore
Multan/ Baha'nagar
Murree/ Attock/ Gilgit
Rawalpindi
Sahiwal
Sargodha/ Sheikhupura
2.7.3. NWFP
Abbottabad/ Mansehra
Bannu/ D.I. Khan
Kohat / Mingora
Mardan
Peshawar
2.7.4. Baluchistan
All Branches
2.7.5. Azad Kashmir
Muzaffarabad
Mirpur
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2.8. NBP Student Loan Scheme
Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech,
a STUDENTS LOAN SCHEME (SLS) for Education was launched by the Government of Pakistan in
collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the
Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who
have financial constraints for pursuing their studies in Scientific, Technical and Professional education
within Pakistan.
The Scheme is being administered by a high powered committee comprising Deputy Governor, State
Bank of Pakistan, Presidents of the commercial banks and Deputy Secretary, Ministry of Finance,
Government of Pakistan.
The objective of the Students Loan Scheme is to provide financial assistance to the meritorious
students of insufficient means who have obtained 70% marks in the last public examination and are
unable to pursue their studies within Pakistan due to financial difficulties.
Loans facility is available to those students who are nationals of Pakistan including Northern Areas,
Federally Administered Tribal Areas and Azad Jammu and Kashmir and of age not exceeding 20 years
for graduation, 30 years for post-graduation and 35 years for PhD at the time of admission.
The maximum period of repayment of loan is 10-Years from the date of disbursement of first
installment .The borrower shall repay the loan in monthly installment after six months from the date of
first employment or one year from the date of completion of studies, which ever is earlier
Loan is granted only to those students who have been admitted to the approved under noted
Affiliated Colleges /Universities.
Under the Scheme, loans are available in the following subjects.
Engineering
Electronics
Oil Gas & Petro-Chemical Technology
Agriculture
Medicine
Physics
Chemistry
Biology, Molecular Biology & Genetics
Mathematics
Other Natural Sciences
DAWA and Islamic Jurisprudence (LL.B/LL.M Sharia)
Computer Science/Information System and Technology including
hardware.
Economics, Statistics and Econometrics
Business Management Sciences
Commerce
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The facility under this Scheme is restricted to the studies in the above-mentioned subjects only or
such other subjects as may be approved by the Apex Committee from time to time.
The amount of loans under the Scheme covers the cost of fee, books and boarding for the entire
period of study.
Schedule Fee and boarding expenses excluding meal charges is disbursed directly to the
University/College.
The amount of procurement of textbooks is disbursed directly to the student.
The students desirous of availing loan under the Scheme may apply on prescribed Form for financial
assistance subject to he or she has got admission on merit through normal procedure in the Universities/
Colleges afore-mentioned.
Application Forms are available from the designated branches.
Applicants are required to submit/send their applications duly completed in all respect, to the
designated branches indicated against Universities/ Colleges.
Those students who have already availed this facility last year need not to apply.
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3. SERVI CES
3.1.
DEMAND DRAFTS
If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBPs
Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can
purchase a Demand Draft from a bank branch.
3.2. SWIFT SYSTEM
The SWIFT system (Society for Worldwide Inter bank Financial Telecommunication) has been
introduced for speedy services in the area of home remittances. The system has built-in features of
computerized test keys, which eliminates the manual application of tests that often cause delay in the
payment of home remittances. The SWIFT Center is operational at National Bank of Pakistan with a
universal access number NBP-APKKA. All NBP overseas branches and overseas correspondents
(over 450) are drawing remittances through SWIFT.
Using the NBP network of branches, you can safely and speedily transfer money for your business and
personal needs.
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3.3. LETTERS OF CREDIT
NBP is committed to offering its business customers the widest range of options in the area of money
transfer. If you are a commercial enterprise then their Letter of Credit service is just what you are
looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the
best way to do your business transactions.
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3.4. TRAVELER'S CHEQUES
3.4.1. Negotiability:
Pak Rupees Travelers Cheques are a negotiable instrument
3.4.2. Validity:
There is no restriction on the period of validity
3.4.3. Availability:
At 700 branches of NBP all over the country
3.4.4. Encashment:
At all 400 branches of NBP
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3.4.5. Limitation:
No limit on purchase
3.4.6. Safety:
NBP Travelers Cheques are the safest way to carry our money
3.5. PAY ORDER
NBP provides another reason to transfer customers money using their facilities. Their pay orders are a
secure and easy way to move customers money from one place to another. And, as usual, their
charges for this service are extremely competitive.
3.5.1. Issuance of Pay order
1. for NBP Account Holder
Rs. 50/- (Flat)
2. for NBP Non-Account Holder
Rs. 100/- (Flat)
Rs. 25/- (Flat) from student for payment of fee favoring educational institution
3.5.2. Issuance of duplicate Pay order
1. for NBP Account Holder
Rs. 100/- (Flat)
2. for NBP Non-Account Holder
Rs. 150/- (Flat)
3.6. MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And they also offer the most
competitive rates in the market.
3.7. FOREIGN REMITTANCES
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a
number of measures to:
Increase home remittances through the banking system
Meet the SBP directives/instructions for timely and prompt delivery of remittances to the
beneficiaries
3.7.1. New Features:
The existing system of home remittances has been revised/significantly improved and well-trained field
functionaries are posted to provide efficient and reliable home remittance services to nonresident
Pakistanis at 15 overseas branches of the Bank besides Pakistan International Bank (UK) Ltd., and
Bank Al-Jazira, Saudi Arabia.
Zero Tariffs: NBP is providing home remittance services without any charges.
Strict monitoring of the system is done to ensure the highest possible security.
Special courier services are hired for expeditious delivery of home remittances to the
beneficiaries.