Internship Report

1. NIB BANK (Salam Banking)

1.1 Introduction to NIB Bank
As Salam is a tribute to the people other banks for granted, a symbol of respect for those who
want respect more than any thing. Salam is an every day salutation a special tribute, a mark of
admiration of an expression of respect. Communicate through gesture, a node, a salute, a bow, an
Addab and through hand shake. So NI is also famous with its name Salam anking.
asically, NI ank !imited started as N"!C#I$IC ank !td. which was built#in in %arch &''(
as a public limited company. It started business in )ctober &''( when all assets, rights and
obligations of the previous National "evelopment !easing Corporation *N"!C+ and ,akistan
operations of I$IC were combined with and into the bank with a paid up capital of -s...&bn. In
April &''/ the ,akistan operations of Credit Agricole Indosue0 were also merged with and into
NI. In %arch &''1 2emasek 3oldings of Singapore ac4uired &15 shareholding in NI ank,
through ugis Investments.
2his shareholding was promoted and enhanced to over 6'5 in 7une &''1 following an raise in
NI8s paid up capital to -s.(./bn. NI ank has since grown speedily from a base of & branches
in &''( to /1 in the /
th
4uarter of &''6. 2otal assets have grown#up from -s.9bn in "ecember
&''( to -s.:6bn *excluding ac4uisition of ,ICIC through rights+ as of September (' &''6, a
CA;- of :15. Credit growth has been e4ually rapid, increasing from -s.6bn to -s./(bn in the
same period *a CA;- of </5+, resulting from successes in both the commercial and consumer
business.
"eposits for the same period have grown at a CA;- of 915, reaching -s./1.(bn. 2he overall
client base of NI has also witnessed a remarkable expansion in the same period as of September
&''6= from a few thousand to over one hundred thousand.NI ank8s vision is to rank amongst
the top 1 banks in the country.
2herefore towards end of 7une &''6 it get hold of ma>ority shares of ,ICIC with the aim of
merging ,ICIC and its commercial banking subsidiary ,ICIC Commercial ank !imited into
NI. 2he ac4uisition was financed through the country8s largest private sector rights issue, with
resultant increase in NI8s paid up capital to -s.&../bn. 2he ,ICIC ac4uisition has bought with it
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Internship Report
another subsidiary ?,ICIC A%C? and associate ?,ICIC Insurance?. NI already has a
shareholding in NA$A, an Asset %anagement Company *A%C+= thus its asset management
business will now also be improved, with diversification in the insurance business.
1.1.1. Mission & Vision of NIB Bank
1.1.1.1 Mission Statement
NI@s %ission is to provide a banking experience so uni4ue, that it compels each of our
customers to want a long term, multi#product relationship with NI ank.
1.1.1.2 Vision Statement
NI@s Aision is toB
2o be the bank of choice for the most discerning segments of the consumer and
corporate markets in ,akistan.
2o revolutioni0e banking for the S%C segment by creating new products and
distribution channels.
2o become a leading provider of investment banking and wealth management
services.
2o be a top#1 choice of employer, a premier developer of human talent, and an
organi0ation that understands and honors its social responsibilities.
1.1.2.Progress & Acie!ement
2he legal merger of ,ICIC, NI D ,C! took place on "ecember (., &''6, once
all regulatory approvals were in place. NI ank led by Ehawa>a I4bal 3assan,
supported by four business heads and ten business enabling function heads. 2ill
from that it is continuously doing progress. 2he merger has resulted in immensely
expanded network of &/' branches and total assets of over -s..:1bn. As a result
NI has the second highest paid up capital of around -s.&6.1bn and ranks number 6
amongst commercial banks in terms of distribution network which is their big
achievement. %ergers will accumulate through lower cost deposits, better customer
service delivery channels and overall improved efficiencies. 2hese would provide a
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competitive edge in the face of increasing competition. 2emasek 3oldings remains
the largest single investor in NI
ank. 2emasek is the business group from Singapore. 2his merger is one step forward in
combining the banking sector as visuali0ation by State ank of ,akistan and enhancing $"I as
per the ;overnment of ,akistan8s ob>ectives. It offers long term banking relationship to their
customer through wide distribution channel embedded in their communities. It helps them in
their prosperity and growth.
1." #uture Pros$ects of NIB Bank
Fe expect that the banking sector in ,akistan will remain extremely competitive for the
foreseeable future. 2herefore, the success of any new institution will be a function of it clarity of
vision and efficiency of implementation.
Fhile we are confident that NI ank will achieve strong growth in revenues, we believe it is
necessary to create the correct foundation for sustainable growth into the future. Fith an
acceptable level of controls and an appropriate level of technology infrastructure, NI ank is
poised to offer incomparable services to its valued clients through its countrywide network of
branches.
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Internship Report
1.% NIB&s 'rgani(ation Structure
4
oard of "irectors
oard Audit
Committee
,resident and CC)
C$)
3ead of Admin
3ead of Commercial
anking ;roup
3ead of Consumer
usiness
3ead of )perations
D 2echnology
3ead of
Corporate ank
3ead of 3uman
-esource
3ead of
-isk %anagement
3ead of
Compliance
3ead of
Internal Audit
3ead of
2reasury

Internship Report
NIB&s )e$artment
1.* NIB&s Ser!ices+ Products
1.*.1 ,oans
NI in Salam anking offers personal loan and CA, to the customer.
1.-.1.1. Personal loan
Nib gives personal loan to the small business man. Some important re4uirements are mention as
under=
%inimum age of &. years
%aximum age of <1 the time of maturity
%inimum tenure of business ( years
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Sole proprietorship
,roper business setup
SecureGunsecured
If business is secure than maximum limit of the loan is 61''''
In unsecured maximum .1''''
1.-.1." .AP (.as against $ro$ert/)
It@s a type of loan in which NI takes mortgage of any property against cash. In case of any
defaulter, bank will sell the property of that person and avoid loss. It@s a part of risk
management.
1.-." Accounts
2ypes of accounts in NI Salam banking are=
Salam usiness AccountG Salam Current Account
Salam achat Account
Salam $ix Account
Salam Committee Account
Sole ,roprietor Account
A Account
usinessGCompany Account
,artnership Account
" IN012NS3IP
".1. #unctioning of 2ele!ant )e$artments
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".1.1. .ustomer Ser!ice )e$artment
NI is trying to serve according to the desire of the people. ,eople want to choose where the
mark up rate is low, where the procedure is easy and where the easy installment are possible, so
according to these re4uirement of the people of NI decreases the mark up rate to 9 5,which is
lowest markup rte in the ,akistan, basically in the banking sector, they start to serve the market
with two different strategies, first is to introduced the products or service on low price, and then
increase the service charges, and &
nd
one is to introduced the service on high price and then
decrease the charges.
2he NI ank is using &
nd
strategy. And in the future of NI is trying to maintain this strategy
for gaining the market share. 2he main responsibilities in this department were=
2o attract the customers and retain them.
2o listen the customer@s complain and solves their problems and confusions *if
any+.
2o fill deposit slips.
2o clear che4ues.
%oney 2ransactions.
Account opening.
".1.". .redit )e$artment
2his department is responsible for the lending of the loan to the customer brought by the
-elationship %anagers. 2hey check the facts D figures mention by the customer are correct and
follow the certain policy. 2he process of loan lending to the customer is=
".1.".1. #irst ste$
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Internship Report
Sale department *-%+ bring login first from the market.
2hey prepare the case according to the policy.
-% handover the file to "%
"% enter the data on his %IS and then handover the file to the credit department.
".1.".". Second Ste$
Credit department first of all screen the file
CCI and "C re4uested
2elephonic verification
-esidence verification
NA"-A verifications
-eference check
".1.".%. 0ird ste$
2his step is most important step for loan lending, which is HCredit %eetingI. CI% conducts it
on the business spot with the customer to asses the business worth and the reputation of the
customer in the market. $ew important things while conducting the credit meeting are
Condition of the stock
usiness setup
Cash flow analysis
Sale
)n the basis of credit meeting CI% take the final decision about the lending that how much
customer worth for the loan.
".1.".*. #ourt Ste$
2hen the credit department does final step, which is the calculation of the loan in the $ine one
,roduction *online software+.
".1.%. '$erations )e$artment
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)peration "epartment@s main responsibilities are=
2o collect installments of loans.
"eposit and withdraw cash.
%ake clear transactions of credit and debit.
2.2. Assignments
".".1 1
st
4eek
2hey told me about the ;eneral banking, it was basically divided into the following sub
departments, and I >ust worked in some of the departments, the ma>or departments of general
banking are as followsB
Account opening
Clearing
2erm deposit
Customer relationship
Issuance of Checkbook after opening Account
In this week I also met with the my colleagues and senior officers, than my senior %anager
Jaiser send me to my colleague %anager Sa4ib, I took all the instructions from %r. Sa4ib.
2.2.2 "
N)
4eek
%y &
N"
work in the bank was to screen the files according to the policy of the bank.
Supervisor %r.Sa4ib told me the process of screening. In screening the files given by the sales
department is then checked later in credit department. $ew important steps were
%atch the information with CNIC
Name of customer and spell check
Signature match
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Internship Report
Any other discrepancy, if found return the file to the sales department.
2o insure all other forms attached
Credit department received daily :#.1 files from the sales department. I did this >ob with full
responsibility and conducted it very well.
".".% %rd 4eek
".".%.1. 0ele$onic !erification
After screening the files in few days second important thing I did was telephonic verifications of
customer in third week. In telephonic verification all the facts D figures mention in the file by
the sales department on behalf of the customer are checked to ensure the right information of the
customer.
Normally one telephone took the time of .'#.1 minutes. 2wo#reference mention in the file also
contacted on the phone to ensure the relationship with the customer. It was very time consuming
process often given number was not contacted.
".".%.". ). 2e5uest ()ata .eck)
I also re4uested for the "C in NI. "C prepare on the Cxcel sheet in which information about
customer was mentioned. $ew important things were=
Name of the branch
Name of the -%
$ather name of customer
")
-esidence address
-esidence 2elephone
usiness Name
usiness address
usiness telephone
Cell phone
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Internship Report
-e4uire loan amount
City
2.2.4. *
t
4eek
".".*.1. Account o$ening
Although the procedure of opening an account in a bank is a 4uite complicated >ob but some of
the basic necessities for opening the account are as followsB
Introduction
National I.". card
,ersonal data
"etails of dealing with other banks.
2hese are some of the basic re4uirements for opening the account.
2.2.4.2. Issuance of .e5ue 6ook
)nce the account is opened, NI ank issued the che4ue book to the customer so that they could
withdraw their money whenever they like. 2he producer of issuance of the che4ue book is as
followsB
$or the customer who already had an account with the bank, the lastly consumed che4ue book
application slips with the help of which a new che4ue book is issued. 2he person who is going to
open a new account for the first time gets the che4ue book free without any re4uisition slip.
$or the new depositors the che4ue book is not issued at the time of opening of account, rather it
is issued after three days but, as the most of the customers are from the armed forces so they
usually get the che4ue book earlier. NI ANE issues the che4ue books for both the local and
foreign currency accounts. I remained there in the account#opening department for one week and
daily I learnt a new thing.
In the start I had stated the account opening procedure and issuance of che4ue book in a very
comprehensive way, now let me tell u the further related detail of account opening.
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Internship Report
$irst of all a customer comes and gets the information regarding the opening of account.
After getting the proper information he gets an introduction and goes for opening an account
of any kind whatever he wants.
I filled the form regarding the opening of account which is in fact a re4uest.
2hen I filled S.S card which contained the signature that will be used in future in order to
identify that you are the same particular person who perfectly eligible for receiving the
benefits.
2he S.S card and the application form are verified and the verification stamp is imposed on
it.
After verification of application forms are pasted in the file with the serial no. which is
actually the account no. Allocated to the respective customers.
2he che4ue book is issued to the customer after three days.
A letter of thanks is posted to the customer as well as the introducer. 2he introducer is
thanked for the two perspectives. 2he procedure for opening the account comes to an end
after sending the letter of thanks.
2he account becomes Inactive if there is no debit transaction. Account becomes active if there is credit
transaction.
2.2.5. -
03
7eek
I told %y supervisor %r.Jaiser that I want to learn more about the banking than he told me about
Kakat process and Checking and amendment in the signature in my 1
th
week. 3e told me about
Kakat. Kakat is deducted on the first of -amadan. 3owever, the ank can8t deduct the Kakat if
you have given Affidavit *declaration regarding not to deduct Kakat on Stamp paper+.
$or non#residents the tax and Kakat is exempt *visa is re4uired as the proof that the particular
person is really a non#resident+. Similarly Christians has not to pay the tax, they have to pay the
tax only.
2.2.6. 8
t
4eek
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Internship Report
It was my last week of my first Internship. I got a lot of information which I did not know previously.
2hen I re4uested my Supervisor to let me go in Sales "epartment. 3e took permission from 3ead office
that Internees are allowed to move for survey. 3e gave me permission then in my last week I worked in
the field as sales D marketing. I had visited many bouti4ues and beauty parlors and convinced ladies to
take loan. I was able to take & customers, one has beauty parlor and &
nd
customer was a lady doctor.
".%. ,earning
I had worked as an Internee in NI ank for < weeks as per re4uired by Lniversity. "uring my
Internship, there was a tremendous atmosphere in NI ank. I learned so many things from their
management like how to work in a standard place. 2hey are using their own made software
which is used by ank for online transactions.
2he most important benefit of this internship is that I got practical exposure of work
place.
I got practical experience of working practices related with my field.
I learned that how to manage things and how to create balance among work life and
personal life.
2hese learned management practices are going to be very helpful for me while on >ob.
%anagement experience from every aspect was really very much friendly
%anagement did help me a lot during my work they always guide me especially
%anager of NI ank.
"uring my internship I learned how to talk and behave with employees and senior
management.
"uring my internship I have seen that no extra burden given to any employee. ut if
there is a need of extra work the manager always do himself *on importance basis+ and went
back to home when not a single work remaining.
".*. '6ser!ation
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Internship Report
"uring my stay I had observed that there is no -eward system for internees and there are some
employees who don@t give as much importance to internees. 2hirdly I observed Selections of
employees are very rare from internees. I think that in Fah Cantt ranch, NI has competitive
edge of providing loans for businesses because no other bank is seemed to do this act.
".*.1. S7'0 Anal/sis
As SF)2 analysis is based on the assumption that if managers carefully review such strengths,
weaknesses, opportunities, and threats a useful strategy for ensuring organi0ational success will
become obvious.
".*.1.1. Strengts
Strength can be defined as an area where a company is best at doing something or a feature that
puts a company at an advantage in comparison to its competitors. I had observed that NI ank
en>oys the following strengths.
2he standard of service is very good and customers are satisfied with that service.
2hey have a computeri0ed system, and online banking.
NI is the 6th largest bank in ,akistan with over &/' branches
NI ank@s A2%@s are linked with a number of leading local and foreign banks.
Automated Systems made NI ank to rise with the pressure of rising competition.
2he employers at NI are offered reasonable monetary benefit. Normally two bonuses are given
Cid#Ll#$itar D Cid#Ll#A0ha.
,romoting savings and investment
NI ank has well established website and is up to date about the bank.
".*.1.". 7eaknesses
A weakness is defined as an area in an organi0ation where the organi0ation is not as good at
doing something as its competitors or a thing which an organi0ation lacks or disadvantage in
comparison to its competitors. ased on the above definition NI ank has the following
weaknesses=
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Internship Report
ranch area is very small with respect to hired employees.
)nline recruitment *unable to collect a pool of candidate because net is not available
everywhere in the country+.
ranch manger can not fire any employee on his bad performance as they are hired as
permanent employees.
Centrali0ed organi0ational structure.
Information system needed for cards may not be compatible with legacy systems.
'$$ortunities
An opportunity can be defined as a change in external environment, which if properly exploited
with the organi0ational strengths will result in enhanced sales, market share, or income. Lsing its
strengths, NI ank can avail the following opportunities=
%any areas for new branch opening.
!arge market potential.
$avorable demographic changes in society.
In the economy of ,akistan where other banks are very carefully lending the different
loan NI giving personal loan in huge 4uantity. 2his will result in great market share in
future.
0reats
2hreat can be defined as a change in external environment which if not met with proper
strategies will result in loss of revenues, market share, or income. In the context of NI anks
external environment, the following potential threats exist=
$oreign banks operating in ,akistan are playing a significant role by incorporating new
technologies and providing better 4uality services thus creating a threat to the local banks
especially to NI ank which tries to develop its image in the eyes of customers.
3uge competition with local and foreign banks
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-apid technological advancements has become challenge for NI ank !td
Already many huge banks are doing business in the banking sector.
"evaluation of ,akistani currency.
2he bank is facing threats with the emergence of new competitors especially in terms of foreign
banks.
".*.". 2ecommendations
$irst of all there is no 7ob security in the NI ank. 2he employees in the organi0ation should be
insured >ob security so that there is no pressure on the employees while performing their tasks.
NI needs to advertise it@s self as it is not so familiar among the people like other banks.
2hey should give training to its staff about the knowledge of the products of different banks as
they then able to compare the advantages of their product with respect to others.
2hey should provide the facility of online submission of utility bills. 2hey should launch home
and car loans services. NI should also introduce H"ress#"ownI day i.e. employees should be
given permission to wear dresses other than formal dresses on certain days so as to make them
relaxed while work.
I found many complaints regarding the A2% issues in NI. %ost of the time A2% remained
offline. NI needs to make sure the alternative links for the customer. At last they have a very
small building and there is no space for sitting for customer they should try to expand their
building.
Assessment )f ,erformance )f Cmployees
2here are no proper criteria for assessment of performance of employees and most of the time it
is on the personal >udgment of the manager who forward the assessment sheets of all employees
to area office for their promotions.
,roblem Fith Information System
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Internship Report
NI ank !td information system is not very good and most of the time online
transaction service of the ank network is down, which occurs to be a big issue in smooth
working, management really needs to work on it.
No -otation )f Cmployees $rom "epartment 2o "epartment
2here is not any rotation of employees within departments and cross departments.
2herefore, the top management should immediately start thinking in terms of rotating the
employees in various departments, as this alter work force into human capital.
Implementation )f %anagement ,olicy
NI ank !td !imited should develop a very serious management policy to attract multi NI
corporations as its clients. 2his action, if actuali0ed, would not only prove to be highly profit
generating, but it would also contribute a lot towards NI ank !td@s image building.
AdvertisementsG%arketing
ank needs to use more marketing channels to make public aware of its products and
services. In the presence of intense competition NI ank !td has to reali0e the
importance of marketing.
"istribution )f Fork
%anagement should distribute work e4ually among different employees. Some of the employees
are overburdened while some sections are overstaffed.
Staff 2raining D Improvement In ,rocesses
2o keep staff well e4uipped and updated with enormous changes in current banking
environment, training are an important part of survival. Cspecially for the customer
service staff and phone banking department as they are at front end and need more
efficient performance for having satisfied customers.
3. .'N.,9SI'N
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Internship Report
"uring my stay at NI ank limited I have learned a lot of things about professional field like
culture of the organi0ation and the behavior of employee like how to deal with customer to
become a loyal customer of the organi0ation. NI is a Singapore based business group. ;roup
has diversified type of business all across the globe. In NI ank, employees have very good
relationship among themselves and also with their customers. Cmployees treated me very well
during my internship duration and helped me to understand the way of doing work. NI ank
has since grown rapidly from a base of & branches in &''( to /1 in the /
th
4uarter of &''6. 2he
internship helped me to improve my confidence level and I learned the way how to deal the
organi0ation level colleagues. It also increases my interaction with different people from
different background and helped me to learn and understand their values and how to deal them in
effective manner. In NI ank Selections of employees are very rare from internees I learnt a lot
from my internship which will help me a lot in my professional career.
2he ,akistan economy continues to face the challenges arising due to global economic crisis.
2hough the economy has shown some positive trends, however, many indicators need to be
further improved to put the economy back on stability track.
2eferences
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Internship Report
444.ni66ank.com.$k
Mr. :aiser Memood Malik (Branc Manager)
Mr. Muammad ;ounis Malik (Branc '$eration Manager)
Mr. Kurram (Branc )e!elo$ment Manager)
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