Chapter 1

Introduction:
This chapter includes brief introduction of internship report itself. Why have I

done internship have done internship in National bank of Pakistan because first it

was requirement of my MBA programme. And after that have I done it to increase

my knowledge which has gained from the books. To increase my confidence and

to also gain the experience how to work in practical life. This chapter also

includes background of study that what were the inspirational factors for choosing

the organization. The purpose of internship will also be discussed in the chapter.

Scope of internship objectives of internship methodology through which i learned

will also be included in the chapter.

Background of study:
These include inspirational factors for choosing the organization.

I choose the bank for internship because firstly I have a great interest in banking

sector. Second the banks are also playing very important role in the development

of economy. Banks are also quite an emerging trend in today’s era. Despite of that

I have done internship to gain practical experience because you are less likely to

find a job without experience. And the most important thing was it was the

requirement of my MBA program.

Purpose:
The basic purpose of doing six weeks internship was to gain practical knowledge

or work experience. Because you must have experience to find a job in this

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competing age. Furthermore I have done internship to increase my knowledge

about banking industry, to know about the products of bank. I also wanted to learn

different functions of the bank. How they are performing. I wanted to enhance my

confidence & it rellay helped that how should we deal with customers. And after

that have I done it to increase my knowledge which has gained from the books.

Scope:
Scope of internship is quite broad.

During internship I worked in almost all departments of banks have learned a lot

during that period. Its scope is wide because trainees are almost moved in all

departments of bank during internship so it gives surface knowledge of all areas

of bank. It really helps trainee in their jobs. I worked in the following

departments.

Cash department

Advances /loan department

Remittance department

Clearing department

Objectives:
The objectives of internship are as follows.

Main objective
To do internship for MBA requirement

To gain practical experience

Sub objectives

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 1. To enhance my knowledge

2. To build confidence

3. To get practical training

4. To improve public dealing

5. To groom my personality

6. To apply my knowledge

7. To enhance my mental and physical abilities

8. To work for longer period of time.

9. To increase my patience

Methodology:
It includes the methods through which I learned during internship.

I learned a lot during my internship through practical work I learned how to work

through discussion with senior employees. I have also learned by observing the

other employees how they are performing their work. I learned most of the things

through the guidance of senior employees. Miss Shahida tabasum was very

cooperative with me through my training. She guided me all the way. I learned a

lot how to work on the branch’s software that was used in the branch.

Organization:
Definition of bank.

An organization, usually a corporation, chartered by a state or federal

government, which does most or all of the following: receives demand deposits

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and time deposits, honors instruments drawn on them, and pays interest on them;

discounts notes, makes loans, and invests in securities; collects checks, drafts, and

notes; certifies depositor's checks; and issues drafts and cashier's checks

According to crowther

Bank is a dealer in debts his own and of other people

According to G.W.Gilbert

A bank is a dealer in capital or more properly a dealer in money. He is an

intermediate party between the borrower and lender. He borrows from one party
and lends to another.

Evolution of banking
The word bank is said to have been derived from the words banque or bank. This

history I traced to early as 2001B.C.the priests in Greece used to keep money and

valuables of the people in temples. These priests thus acted as financial agents.

The origin of banking is also traced to early goldsmiths. They used to keep strong

safes for storing money and valuables of the people. The person who had surplus

money found it safe and convient o f deposit their valuables with them. The first

stage in the development of modern banking thus was the accepting of deposit of

cash from those persons who had surplus money with them.

The goldsmiths used to issue receipts for the money deposited with them. These

receipts began to pass from hand to hand in settlement of transactions because

people had confidence in the integrity and solvency of goldsmiths. When it was

found that these receipts were fully accepted in payments of debts then the

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receipts were drawn in such a way it entitled any holder to claim the specified

amount from goldsmiths. A depositor who is to make the payments may now get

the money in cash from goldsmiths or pay over the receipt to the creditor. These

receipts were the earlier bank notes. The second stage in the development of

banking thus was the issue of bank notes.

The goldsmiths soon discovered that all the people who had deposited money

with them do not come to withdraw their funds in cash. They found that only a

few persons presented the receipts for encashment during a given period of time.

They also found that most of the money deposited with them was lying idle. At

the same time they found that they were being constantly requested for loan on

good security. They thought it profit able to lend at least some of the money

deposited with them to the needy person. This proved quite a profitable business

for the goldsmiths. They instead of charging safe keeping from the depositors

began to give then interest on the money deposited with them. This was the third

stage in the development of banking.

Summary:
In this chapter I have mentioned the purpose of doing internship. What were some

inspirational factors for doing internship? What scope the internship has for

students. The objectives of internship are discussed as well. For improving my

skills and to gain practical experience. What were the methods used to learn

during internship.

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 Chapter 2:
Introduction:
In this chapter we shall come to know the different respective sector in Pakistan.

Then role of NBP in various sector of Pakistan will also be discussed. The

products and services of NBP will also be discussed in this chapter. And at the

end it includes the brief introduction of the branch in which I have done my

internship.

Overall respective sector in Pakistan:

Pakistan's Banking Sector
Banking Industry in Pakistan

Banking is one of the most sensitive businesses all over the world. Banks play

very important role in the economy of a country and Pakistan is no exemption.

Banks are custodian to the assets of the general masses. The banking sector plays

a significant role in a contemporary world of money and economy. It influences

and facilitates many different but integrated economic activities like resources

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mobilization, poverty elimination, production and distribution of public finance.

Pakistan has a well-developed banking system, which consists of a wide variety

of institutions ranging from a central bank to commercial banks and to specialized

agencies to cater for special requirements of specific sectors. The country started

without any worthwhile banking network in 1947 but witnessed phenomenal

growth in the first two decades. By 1970, it had acquired a flourishing banking

sector.

SBP acts as a nucleolus in the financial system of the country. Today, a central

bank is the central arch of the monetary and fiscal framework in many countries

of the world and its activities are essential for the proper functioning of the

economy and critical for the fiscal operations of the government and Pakistan’s

banking system is no exemption. Will Roger (1992) describe a central bank as one

of the great inventions of the 20th century? State Bank of Pakistan was

established on the first of July 1948 under the SBP order 1948 as the central bank

of the country.

State Bank of Pakistan reins the monetary and credit system in Pakistan. The SBP

is performing many useful functions like custodian of cash reserve of commercial

banks, custodian of foreign currency reserves, bank of rediscount, central

clearance, settlement and transfer, and conducting monetary policy for the

stability of the entire banking industry of Pakistan.

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Types of banks:

There are various kinds of banks in modern age. Every bank has different

features. The main types of the banks are these:

1.Central Bank

every country has a central bank. The name of central bank in Pakistan is State

Bank of Pakistan. The aim of this bank is not to earn profit but the regard the

supreme interest of the country. It is responsible for regulating the volume of

money and credit in the country. All the notes are issued by this bank. It is

financial adviser to the government.

2. Commercial bank

the commercial banks work on commercial basis. Their main aim is to earn

profit. The banks accept deposits from the people and advance short, medium and

long term loans to the businessmen. The commercial bank also provides a number

of agency and utility services to the public.

3. Exchange Banks:

These banks deal in foreign exchange. The main aim of such banks is to buy and

self foreign currencies and facilitates the export and imports of goods. In Pakistan,

the Chartered Bank and the Grindery Bank

Are the examples of exchange banks. Moreover, the scheduled commercial banks

also deal in foreign exchange.

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4. Industrial Banks:

These banks advance medium and long term loans for the setting up industrial

units in the country. In the western countries there are a large number of industrial

banks while in Pakistan has small number of institutions are engaged in financing

industries.

Role of organization in Pakistan:

Role of the organization in Pakistan:

National bank of Pakistan plays a vital role in Pakistan. These roles are discussed
below.

The Intermediation role:

NBP transforming savings received primarily from households into Loans.

For business firms and others in order to make investments in new buildings,
equipment and other goods.

The payments role:

NBP carrying out payments for goods and services on behalf of their customers
(such as by issuing and clearing checks, and dispensing currency and coin.

Guarantor role:
NBP plays a role of guarantor between (seller and buyer). Standing behind their
customers to pay off customer debts when those customer are unable to pay (such
as by issuing Latter of Credit).

Savings/investment advisor role:

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NBP saves the amount of those people who have extra amount. And then lend it
to those persons who have fewer amounts. Aiding customers in fulfilling their
long-range goals for a better life by building, managing and protecting savings.

Overall organization and functions of org in Pakistan:

It includes different products and services provided by NBP.

NBP products

NBP Advance Salary

• 20 month salaries in advance (certain conditions apply).

• Minimum documentation.
• Repayable in 5 years.
• No processing charges; no collaterals, no guarantees, no insurance.
• Mark-up charged at 11% per annum on reducing balance method.

NBP Cash n Gold

• Facility of Rs.10,000 against 10 Gms of gold.

• Mark-up 13% per annum.
• No maximum limit of cash.
• Repayable after one year.
• Roll over facility.
• No penalty for early repayment.

NBP Kisan Dost

• Loans available for the farmers for production, development purposes, for
purchase of tractors, for installation of tube wells, for purchase of

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 agricultural implements, micro loans, for godown construction, for
construction of fish pond, for livestock farming, for milk processing, for
cold storage, bio-gas plants etc.
• Mark-up 11% per annum.
• Loans available at the farmer’s doorsteps.
• Agricultural experts to guide farmers.
• Loans available against agricultural passbooks, gold ornaments and paper
security.

NBP SERVICES:

DEMAND DRAFTS:

If you are looking for a safe, speedy and reliable way to transfer money, you can
now purchase NBP’s 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. If you are looking for a safe, speedy and reliable way to transfer
money, you can now purchase NBP’s 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.

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 our 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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PAY ORDER:

NBP provides another reason to transfer your money using our facilities. Our pay
orders are a secure and easy way to move your money from one place to another.
And, as usual, our charges for this service are extremely competitive.

MAIL TRANSFERS:

Move your money safely and quickly using NBP Mail Transfer service. And we
also offer the most competitive rates in the market.

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

• 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

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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.

SHORT TERM INVESTMENTS:

NBP now offers excellent rates of profit on all its short term investment accounts.
Whether you are looking to invest for 3 months or 1 year, NBP’s rates of profit
are extremely attractive, along with the security and service only NBP can
provide.

Organization office in which you are working:

I have done internship in national bank of Pakistan service industry branch Gujrat.
The branch code is 0647. This branch has been providing its services to public
almost for 40 years. The staff of the branch is very cooperative and hard working.
They guided me all the way during my training.

This branch mainly deals in disbursing salaries to employees of service industry.

Other than that the branch accepts large deposit of service Ind because service Ind
is also having account of their welfare funds. This branch also disburses salaries
to all the government employees, like teachers, policemen, & people who have
retired from Pakistan armed forces. The branch also deals in paying pension to
old employees this can be called EOBI.

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These were the functions which are performed by the branch other than the
normal banking functions.

Summary:
In this overall banking sector of Pakistan have been discussed. What are the
services that are offered by NBP? And different functions of NBP like their
products and services are also discussed. And at end I have introduced the branch
in which I have worked.

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 Chapter 3:
Introduction:
This chapter is specifically about the branch in which I have worked. It includes
brief history of organization. The communication between head office and
branches. How many are the departments in this branch. It includes information
about the staff of the branch, their qualification and experience, training received
by them, promotion system and all the things which are related to branch are
discussed in this chapter.

Brief history of organization:

GOLDEN HISTORY OF NATIONAL BANK OF PAKISTAN

In 1949 (September) U.K. devalued its currency, India followed suit but Pakistan
did not. India said we had contravened the agreement of keeping both currencies
at par. We said we had not done that, India had done it arbitrarily without
consulting us. On October 3, 1949 the two central banks were to announce the
new par value of both currencies but India denied a day earlier. India also froze
our trade - balance surplus that is still an unsettled dispute. India also withdraws
the Marwari merchants who were employed annually for movement of jute crop
by financing it. There being no jute industry, prices fell sharply, foreign banks and
foreign merchants stood aside and an agrarian unrest was threatening.
Two Ordinances were, therefore, issued
1. Jute Board Establishment Ordinance &
2. NBP Ordinance dated 08.11.1949
National Bank of Pakistan was established on November 9, 1949 under the
National Bank of Pakistan Ordinance 1949 in order to cope with the crisis
conditions which were developed after trade deadlock with India and devaluation
of Indian Rupee in 1949. Initially the Bank was established with the objective to

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extend credit to the agriculture sector. The normal procedure of establishing a
banking company under the Companies Law was set aside and the Bank was
established through the promulgation of an Ordinance due to the crisis situation
that had developed with regard to financing of JUTE trade. The Bank commenced
its operations from November 20, 1949 at six important jute centers in the East
Pakistan and directed its resources in financing of jute crop. The Bank’s Karachi
and Lahore offices were subsequently opened in December 1949. The nature of
responsibilities of the Bank is different and unique from other banks/financial
institutions. The Bank act as the agent to the State Bank of Pakistan for handling
Provincial/Federal Government Receipts and Payments on their behalf.
Mr.Ghulam Farooq was chairman Jute Board and Mr. Mumtaz Hassan was
chairman NBP. Until June, 1950, NBP remained exclusively in jute operations,
thereafter-other commodities were also taken-up. After that Mr. Zahid Hussain,
Governor SBP assumed additional charge also as chairman NBP's Board of
Directors, and Mr.M.A.Muhajir became its first M.D.
In 1952 NBP replaced Imperial Bank of India. This arrangement was negotiated
by Mr. Mumtaz Hassan as Acting Governor of SBP.
In 1962 when Mr. Mumtaz Hassan became MD (He had already served NBP for
10 years as its Chairman of government Director), the number of branches had
increased from 6 to 239 and deposits from Rs.5 crore (50 million) to 106 crore
(one bn & 60 mln), profit from 3 million (3 Lac) to 21 million (2.1. crore) and the
staff increased from 380 to 7091, as compared to 1949-50. In Dec. 1966 its 600th
branch was opened raising the deposits to 2.31 bn. and staff to 14, 963. Up to
1965, the shareholders had received 225% of their original investment. Now it has
more than 21549 employees 1537 branches and Rs.208283 million deposits.
The Bank has also played an important role in financing the country’s growing
trade, which has expended through the years as diversification took place. Today
the Bank finances import/export business to the tune of Rs.62.17billion, whereas
in 1960 financing under this head was only Rs.1.54billion.
The field is being de-layered to improve customer services and enable faster
decision making. As a result of this de-layering zones have been eliminated and

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the numbers of regions have been increased. Organizational hierarchy at the
regional level has been restructured and operational and business activities have
been completely separated. This separation will improve communication, decision
making and promote teamwork.
For the third consecutive year, the Bank is recognized as the best Bank in
Pakistan for the year 2004 by the prestigious periodical. “The Banker” UK (a
subsidiary of Financial Times Group)

“We’re expanding horizons, reaching out,

Being there and bringing something for

everyone.

After all, we are The Nation’s Bank”.

VISION

To be the pre-eminent financial institution in Pakistan and

Achieve market recognition both in the quality and delivery

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 of service as well as the range of product offering.

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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Corporate information:

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 ORGANIZATIONAL CHART OF NATIONAL BANK OF
PAKISTAN
DESIGNATIONS FO HIGHER LEVEL OFFICE:

PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22

EXECUTIVE VICE PRESIDENT

GRADE 21

VICE PRESIDENT
GRADE 20

ASSISTANT VICE PRESIDENT

GRADE 19

GRADE I OFFICER
GRADE 18

GRADE II OFFICER
GRADE 17

GRADE III OFFICER

(GRADE 16)

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Relationship of head office to the branch offices:
Communication channels between head office and branch offices are:

Mail

Post

Telephone

Electronic communication

Whenever any decision is to be made these are made by president of National

bank of Pakistan with the consultation of group chief. Any policy which is to be
communicated to different branches it is done normally done through mail or by
post. Electronic communication is also used to some extent in NBP. Decision or
any information is circulated to all the branches in Pakistan through mail or by
post. Different instructions are also given to branch managers by telephone.

Number of departments:

DEPARTMENTS AT NBP

The Departments functioning at NBP as briefed by its concerned officers during the
internship are:

1. General Banking Department

2. Account Department.
3. Remittance Department.
4. Advances Department.

GENERAL BANKING

General banking section consists of following sub sections:

 Inquiry section

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  Inland Remittances
 Deposits
 Cash Department
 Utility Bills

INQUIRY SECTION

• Account opening
• Issuing Cheque Book
• Term Deposits

ACCOUNT OPENING

Opening of a new account is like a contract between the bank, NBP and customer which is
guided by the people under Inquiry section. The preliminary function of this section is to
open various types of accounts, by allotting them their Account numbers.

TYPES OF ACCOUNTS

Following types of accounts are opened

• PLS ACCOUNT / PLS SAVING ACCOUNT

These accounts are opened mainly by those customers whose banking

transactions are not frequent and numerous. Lower and middle income groups,

small traders, professionals, farmers and other salaried classes usually make such

deposits. Funds can be deposited frequently through cash, cheques, demand drafts,

pay orders, telegraphic transfers and other such instruments.

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 The objective of the Bank is to keep such deposits and earn maximum profit by

investing the proceeds of the deposits, to help small savers, to fulfill their business

needs and to provide assistance in uplifting the economy.

• CURRENT ACCOUNT
These are running accounts opened by the individuals .They deposits and

withdrawals frequently cheques, demand drafts, pay orders, etc drawn on the

branch. Depositors deposit their money and the Bank by accepting these deposits

incurs the obligation of paying all types of orders to the extent of the credit

balance in the depositor’s account. These deposits represent current liabilities of

the Bank. So the bank has to keep sufficient funds in its hand to meet the

requirements of the depositors of these deposits.

SALIENT FEATURES

1. The minimum requirement for opening the account is Rs. 200

2. There is no limit for maximum deposit.
3. No limit of deposits and withdrawals is definite.
4. The deposits can be lodged in both local as well as foreign currencies.
5. The deposits can be made by:
• Individuals
• Sole proprietary concern
• Partnership firm
• Societies and clubs
• Institutions

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 6. The bank collects cheques, demand drafts, etc. and pay all the bills, cheques,
pay orders, etc., on the behalf of its depositors.
7. The bank will not pay any sort of profit to the account holder.
8. After time of opening the account in the name of an individual. The bank will
record the name and address of the next of the kin of the account holder as
disclosed by him, who can be contacted in the event if account remains inactive
for more than three years.
9. The bank would not require any prior permission from the account holder for
debiting his/her account for charging expenses, fees, commission, mark-up etc
arising out of any dealing or services with the branch.
10. The account holder is expected to maintain a minimum balance of Rs. 500 in
his account or whatever the minimum amount is prescribed for the purpose.
11. The banks now a day also provide the ATM card to account holder for 24 hour
cash services at annual charges.
12. Account statements are provided to the depositors mostly at monthly/quarterly
intervals or whenever is required by him.

CHEQUE BOOK ISSUANCE

After fulfillment of all requirements for opening an account letter of thanks are

issued to both individual and introducer. Cheque book is issued at the time when

individual came along with that letter. Account number that is also mentioned in

the letter is then get stamped on each and every flip of the cheque book.

TERM DEPOSITS

DSC and SSC are the certificates which are issued by the bank under the
condition that they will not be payable on demand, but will be payable on a fixed

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 or predetermined future time or date so they are commonly known as term
deposits.

DEPOSIT SECTION

This section is responsible for collecting cheques which are to paid within city or

outside of city for the purpose of clearing .This clearing process get completed with

in 3 days

CASH DEPARTMENT

Cash department is responsible for daily cash receipts and cash payments of cash to
general public and other services like:

1. Cash Payments
a. C/A
b. PLS(Saving)
2. Prize Bond Payments
3. Demand Notice Collection
4. Cash Receipts

UTILITY BILLS SECTION

With the aim of extending this service to the wider range of customers, the number

of NBP branches collecting utility bills (gas, electricity, telephone) has been

increased to a large number of cities. So that the public w have easily access without

getting much trouble.

REMITTANCE DEPARTMENT
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Function of this department is to help in transferring of funds from one place to another.
Transfer of funds from foreign country to Pakistan .i.e. all the payments send from
outside country to Pakistan or Transfer of funds from Pakistan to foreign country i.e. all
the payments send to outside country Pakistan through NBP.

Remittance department here consists of two major sections:

√ Local Remittance
√ Foreign Remittance

Local Remittance

The term inland remittance means transfer of funds from one branch to another with
in the country though following banking instruments:

• Demand Draft
• Telegraph transfer
• Mail transfer
• Pay Order
• Inland Bills
• Agency agreement from other banks.

Foreign Remittance

The bank provides the facilities of foreign remittance to the domestic residential and

foreigners to send money from one country to another.

Types of payments

• Commercial Payments
• Private payment/Family Remittances

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ADVANCES DEPARTMENT

Advances Department is lending loans to individuals Companies, Corporations etc.

for different purposes. It provides loans for agricultural and industrial development.
Its provides these types of finances:

 Running Finance.
 Demand Finance.

Clearing department:
Clearing department clears the cheques of the customers within gujrat and outside

gujrat as well. The cheques are sent to respective banks on which they are drawn.

The clearing house is situated in Gujranwala. Representatives of all the banks gather

there to complete the transaction. This process is completed within 3 days. The

cheques which are drawn outside of gujrat are cleared within a week.

Offices or field offices:

NBP was incorporated in Pakistan in 1949. It has a well-established domestic

network comprising more than 1,100 branches and 29 regional centers covering

the entire country.

Recovery offices:
One recovery officer is appointed in every branch. The duty of the recovery

officer is to make sure the timely payments of installments by the customer. If any

customer has taken a loan the recovery officer pursuit the customer to make the

payments of the installments. If the customer does not do so first he contacts the

customer on telephone and if even than he does not make the payments recovery

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officer personally goes to him and ask for the payments. These are the duties of

recovery officer.

Current staff:
There are 9 employees including security guards are working in NBP service
industry branch gujrat.
Current staff of branch according to qualification and experience:

Name Qualification Experience

Farrah khursheed MA 10
Naveed ahmed FA 12
Aslam iqbal FA 30
Shahida tabasum MBA 4
Adnan ahmed B COM 2
Afzal ahmed Matric 4

Training received by no of employees:

Head office of NBP normally arranges the training programme for improvement

of their employees. The training programmes are arranged in almost every city of

Pakistan. In gujrat training programme is arranged in regional head quarters of

NBP. Some times employees have to go to Karachi, Lahore, and Gujranwala for

attending the workshops. The employees are told to KYC that is to know your

customer. It improves their skills in banking sector.

Work load:
All the employees are bound to perform their duties from 9am to 5pm. The timing
of Friday and Saturday is from 9am to 12.30pm. work load is divided equally to
all the employees of the branch.

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 Salary structure:
NAME SALARY
Farrah khursheed 30,000
Naveed ahmed 24,000
Aslam iqbal 75,000
Shahida tabasum 12,500
Adnan ahmed 5,500
Afzal ahmed 11,000

Promotion system:
Promotion system is arranged by the head office of National bank of Pakistan. It is
based on the experience and qualification of the employees. Promotion of officer
grades is normally made after three years. The employees who are on contract they
are confirmed after completing a specific period. All the procedure is carried
through performance appraisal. Head office normally asks for the performance
report from the branch managers of the employees, who are going to be permanent.
Generally, the aims of a scheme are:

 Give feedback on performance to employees.

 Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administrator.

Incentives and motivation:

National bank of Pakistan gives different types of incentives to motivate

employees. These incentives includes

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  Welfare fund
 Bonuses
 Annual bonuses
 Cash awards
 Eid bonuses

NBP gives funds and bonuses on the basis of performance of the workers.

Responsibilities or duties performed:

Farrah khursheed: To monitor the activities of the branch employees

Naveed Ahmed: To record the entry of cheque entry and to pass the cheques

Aslam iqbal: To pay the cash to customers and utility bill collection

Shahida tabasum: She deals in advances department

Adnan Ahmed: pension payment to customers

Afzal Ahmed: Collection of passport fee

Critical analysis of branch:

The service Ind branch is doing quite well but there are some areas where the
improvement is required. Just like behaviour with customer, use of new
technology better IT training.

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Communication system:

Communication in the branch is normally down ward. Any decision is made by

manager and then communicated to all the staff of the branch. Other than that

communication among employees is done through face to face or some times

through telephone as well.

Hiring system:

Hiring system of NBP is mainly responsibility of head office. Whenever there the

jobs are offered these are advertised on website of NBP. The candidates are asked

to submit their CV or their documents to the head office. If the candidates meet

the criteria or requirement of the jobs then they are asked to come for the

interview. This process is completely based on merit.

Morale of staff:

Morale of service Ind branch employees is very good. They are motivated enough

to provide the better service to their customer. They care their customer and try

their best to provide good and quality services. Employees are awarded by

bonuses to keep the motivation level high.

Physical facilities:

Physical facilities at service Ind branch are quite good. There is big hall customer

don’t have any problem while waiting for their turn. Fans and three split units are

erected there to control the temperature in the hot summer. Water cooler is also

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available for cold water. There is a separate room for branch manager Mrs.Farrah

khursheed and different sections for other employees.

Performance:

In terms of quality (through customer satisfaction)

The performance of service Ind branch in terms of customer satisfaction is

satisfactory. Although the customers are not fully satisfied with the services
provided to them, but this is mainly due to not having online system. But still this
branch is providing services as much as they can.

In terms of quality (through number of accounts)

Although the services are not up to date but the branch still have satisfactory
budget. Because this branch has the large accounts of service Ind, EOBI and
Government institutions accounts. So numbers of accounts are on the increasing
side.

Latest budget review:

The budget is made by the head office of every branch. The charges of the bank
include salary of the employees, stationary charges. The revenue of the branch is
generated through advances, loans, different accounts, and other types of different
services provided by the branch.

Summaries:

In this chapter I have mentioned in detail about the branch. Working of the
branch, salary structure, how salaries are disbursed to employees. What are the
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different incentives and awards are given to them to keep them motivated. I have
also mentioned the performance of the branch in terms of customer satisfaction
and in terms of number of accounts. These were the main points which are
discussed in this chapter.

Chapter 4

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Introduction:

In this chapter I would have a brief look at the policies of National bank of
Pakistan which are made by the head office of NBP. Then what are the strategies
which are made to achieve long terms objectives and goals. The success of
strategy will also be discussed later in the chapter.

Policies:

Policies are the written or formal guidelines for any work which is to be
performed. These are the rules and regulations of the game. Different policies of
NBP are as follows.

POLICY FORMATION:

For policy formation, directors meet once a month. In the meeting policies of the
last month are usually discussed. If there is a need of review, then the directors
have he right to do that, but collectively.

MANAGEMENT OF BANK:

In this the board discussion about the management of all the branches,
performance of the managers of each branch is discussed individually. On the
basis of the performance, it is decided whether a branch manager deserves a
reward of his performance or he must be punished because of his negligence.

Different departments in The NBP perform different functions. There are

departments like shares; customer, credit and they have their respective functions.

Administration department only interferes at the time where there is a problem

about the staff. In the branches, every manager has a direct link with his sub-
ordinates. The branch manager assigns employees of the bank a particular job.
Usually there is job rotation is avoiding the difficulties at the time of absence of

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any employee. The Board of directors or higher management sets goals to the
managers or middle and lower level of management. The task specifies not only
what is to be done, but also how it is to be done and exact time allowed of doing
it. The board consisting of ten directors and a managing director interviews
managers and upper level management.

STATEMENT OF ETHICS AND BUSINESS PRACTICES:

Statement of ethics and business practices is prepared and circulated annually by

the board of directors in order to establish a standard of conduct for directors and
employees, which statement shall be signed by each director and employee in
acknowledgement of his understanding and acceptance of standard of conduct.

Privacy policy:

Privacy of customer personal information Is utmost important for national bank of

Pakistan. They try very hard to keep the information as safe as they can.

Strategies:

NBP has formulated certain sets of strategies to enable it to achieve its goals and
objectives. These strategies are mentioned below:

1. In order to achieve its goals of creating a sound base and presence of

efficient modern banking system, NBP has started operation of Automated
Teller Machines in all the major cities like Karachi, Lahore, Multan and
other cities of Pakistan.

2. NBP is committed to building long-lasting relationships through an

assertion to service excellence and providing innovative products to meet the
changing needs of our valued customers. Although still in its infancy,
compared to the exalted banking standards, but NBP is trying to improve the
services.

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3. The main focus is building relationships and being known by the
way they do business. Management recognizes that a banking relationship
requires compatibility, communication, and cooperation and that each customer
deserves nothing less than full attention and available resources to meet their
financial objectives.

4. Core value and corporate culture is based on the belief that superior
personalized service is the most important product. Bank is in the process of
getting to know customers by name and understand their business and personal
financial needs.

5. The NBP team comprises of some of the most highly skilled and
professional financial experts in banking industry. Managers, lenders and trust
advisors offer the unique perspective of knowing and understanding in the
local economy. The Management focuses its attention on making informed and
feasible economic decisions, bringing better returns and more profitability for
investors and customers.

6. Keeping in view the unrest among the Islamic Community on the Interest
Bearing Banking the NBP is in the process of target marketing and gives its full
attention to this segment of a large population over the world.

Successes:

National bank of Pakistan has gained quite success after implementing the
strategies. After the use of new technology they have improved the customer
relation and satisfaction. The number of accounts and budgets are on the
increasing side.

Summary:

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In this chapter policies and strategies of national bank of Pakistan have been
discussed. After implementing the strategies the success is also been discussed.

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 Chapter 5

This chapter includes SWOT and PEST analysis of National bank of Pakistan.

SWOT analysis of NBP:

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieving that objective.

• Strengths: Attributes of the organization that is helpful to achieving the

objective.
• Weaknesses: Attributes of the organization that is harmful to achieving
the objective.
• Opportunities: External conditions that is helpful to achieving the
objective.
• Threats: External conditions which could do damage to the business's
performance.

STRENGTHS:

• Advance salary product:

• It exists in the list of top 10 banks in the ASIA.
• It has the highest profit among the largest banks of the ASIA.
• Its paid-up capital is very high
• Very less uncertainty because of a Govt. bank
• High confidence due to higher capital investment.

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 • LC (letter of credit) is acceptable all over the world.
• Chest branches can supply cash on the behalf of state bank.
• Chest loans can be used for limited time
• Stake holder is Govt. of Pakistan.
• It holds the Govt. treasury.
• The biggest customer of NBP is Govt. of Pakistan.
• Work as corresponding of ASKARI bank
• Provide High packages to employees.
• Provide high staff benefits.
• Recruitment occurs after every year.
• MTO’s selection is planned till 2010.

WEAKNESSES:

• The Major problem with NBP is its image as it is a Govt. bank so the vision of
the customer is not positive about it.
• People think it will not provide them satisfactory services.
• In many branches management is not up to date.
• In small area’s branches employees have less education.
• Award and promotion policies are not implemented in all branches.
• There is no concept of job rotation
• Employees have low coordination level among each other.

OPPORTUNITIES:

• Advance salary for employees

• Employee benefits
• Pensions
• Award for employee performance
• Promotions
• Corporate planning learning.

THREATS:

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 • Turn out of employee
• Job security and Strugglers
• At a time do no. of jobs due to competitor.
• NBP have to do those jobs which have no loss and no profit because of their
competition
• Customer dissatisfaction
• Slow actions on complains
• Political environment.

Pest analysis

Pest analysis includes political, economical, social and cultural & technological
analysis of national bank of Pakistan.

Political

• Privatization and deregulation policy

• Impact of subsidized credit affecting &NCB’s

• Employment practices, unions association

• Political interference and harassment

• Incidents of high taxation in banking industry

Economical

• Constraints in mobilization of public saving because of inflation

• Staff cost

• Operating cost

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• Bad debts

Social &cultural

• Inadequate human resources

• Cultural constraints to saving

• Defaulter’s lobby

• Decling education & work ethics

• Inadequate accountability

• Adequate empowerment

Technological

• Inadequate communication infrastructure

• Inadequate computer facilities

• Inadequate IT training

• Very less computer knowledge

• Traditional methods are used in branch

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 RECOMMENDATIONS:

1. This is a computer era. With the use of computer we can increase our
efficiency. N.B.P. should computerize all its branches. By the use of
computer properly these branches can increase there working efficiency.
2. N.B.P. as public service oriented institution has to create business
opportunities for themselves. Now a day there is a competition between
the banks.
3. Central Asian Republics (CARs) have great opportunities of new business
so N.B.P should open new branches in these Republic.
4. Model Banks like City Bank, M.C.B. is using media very effectively to
increase the business of banks. So N.B.P should use electronic media for
its business developments.
5. The interference of union in banking business should be minimized as it
decreases the working efficiency of the employee as well as the bank.
6. The working of the Service industry branch is satisfactory but still these
working efficiencies are far from the standard of modern banking system.
7. The bank should finance its loans in those projects that are meeting the
required standard and should avoid the political pressure.
8. The bank should bring forward the new talent as fresh knowledge and
education is considered very important to increase the efficiency and
production.
9. There is a need to make the outlook situations of branches in the manners
that can compete with the other modern banks in the banking market.
10. Keeping in view the hard work by the staff members at all levels of
management, staff should be given bonus and increment every year.

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11. Credit cards are issued by the different banks like MCB, ABP and Citi
Bank etc. but NBP don’t issued this type of finance scheme, there is a
place for this type of scheme in this bank.
12. Separate desk or counter should be established in every branch to provide
the information as required by the clients.
13. The environment of the offices should be comfortable so that the client
and staff must feel comfort during business in bank.
14. There are some clients having sound and successful plan but without
financially sound and providing securities bank should firms such policies
that may solve this problem.
15. I observed that many branches of NBP are over crowded. Less people can
work which extra people perform. Number of employees should decrease
or new branches should opens for the adjustment of these extra employees.
16. Most of the bank employees are sticking to one seat only, with the result
that they become master of one particular job and loose their grip on other
banking operations. In my opinion each employee should have regular job
change.
17. Refresher courses for staff are most important in my international
organization. All the employees should have their courses according to
their requirement.
18. Every year some of the employees should be sent for training to other
countries and employees from other countries should be brought here.

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References:

www.google.com

www.soople.com

www.nbp.com.pk

www.bing.com

www.yahoo.com

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