Table of Contents

1 Introduction ......................................................................................................................................... 2
2 Vision and mission .............................................................................................................................. 3
3 Organizational structure .................................................................................................................... 4
4 Internee activities ................................................................................................................................ 4
5 SWOT analysis .................................................................................................................................... 5
6 PESTEL analysis ................................................................................................................................. 6
7 Week wise activities ............................................................................................................................ 7
8 Ratio Analysis NRSP BANK LIMITED ..................................................................................... 9
9 Ratio Analysis .................................................................................................................................... 11
10 Application Of Class Room Teachings: ...................................................................................... 14
Marketing Management:...................................................................................................................... 14
Human Resource Management: .......................................................................................................... 14
Principals of Management: .................................................................................................................. 14
Accounting cycle: .................................................................................................................................. 15
Operations of NRSP .............................................................................................................................. 15
11 Suggestions..................................................................................................................................... 15
12 Conclusion ..................................................................................................................................... 16
13 References ……………………………………………………………………………………….16
14 Internship Letter……………………..…………………………………………………………17

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1 Introduction

NRSP Microfinance Bank Ltd. is one of the leading microfinance banks in Pakistan. It commenced
its operations in March 2011 with a strong social mission to provide financial services to poor and
marginalized clients including small and landless farmers. The Bank also offers quality banking
services to its valued clients including Government and private institutions.

NRSP Bank adheres to internationally recognized Corporate Governance and prudent banking
practices. This has enabled the Bank to double its equity within 5 years. As part of offering
innovative products and services, the Bank is also privileged to be the 1st regulated provider of
Islamic microfinance services in Pakistan.

NRSP Microfinance Bank Limited has a rather exceptional public figure in the society. Being a
leader among rising banking systems and establishing a strong influence over a variety of
financially integrated aspects of businesses, the NRSP Bank is the leading player of Microfinance
in the country. Staying honest to its primary elements of belief, the bank has vowed to offer cutting-
edge banking services to its customers adequately with the launch of Islamic Microfinance
Operations.

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Head office
NRSP Microfinance Bank Limited, Near Baghdad Railway Station, University Road,
Bahawalpur 63100, Pakistan.

No. of branches 12. Active clients 448048. Total deposits 24459622762

Kot addu branch:

Near Kali Pul, GT Road, Kot Addu, District Muzaffargarh

2 Vision and mission

Vision
To become a leading microfinance bank in Pakistan.

Mission

We believe in harnessing the potential of the people through inclusive finance for poverty
reduction and a brighter future.

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3 Organizational structure

BOD

General
CEO
Manager

social gender social sector financing

HR manager IT Manager
mobilization development services and accounts

4 Internee activities

The activity that I perform as an internee at bank was the basic information of account opening
and giving information about all types of accounts and loans. My second activity was to fill up the
deposit slips of those who could not do themselves. I had also assisted those peoples who could
not use their ATM cards. I also search the ATM cards list of new cards and issue them cards. Loan
files are also arranged by me. Last two days of a week my activity was in fields with recovery
officer to collect loans amounts.

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5 SWOT analysis

Strengths

1. Source of employment and GDP

2. Hedge of risk
3. Diversified services
4. Connecting to people

Weakness

1. Lack of coordination
2. High non-performing assets
3. Structural weakness
4. Vulnerable to risk

Opportunities
1. Expansion
2. Changing socio cultural factors
3. Rise in private sector banking

Threats
1. Recession
2. Stability of system
3. competition

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6 PESTEL analysis

Political factors

The banking sector looks all powerful — but it’s susceptible to a bigger giant: the government.
Government laws affect the state of the banking sector. The government can intervene in the
matters of banking whenever, leaving the industry susceptible to political influence. This includes
corruption amongst political parties, or specific legislative laws such as labor laws, trade
restrictions, tariffs, and political stability.

Economic factors:

The banking industry and the economy are tied. Additionally, when inflation skyrockets, the bank
experiences the backlash. Inflation affects currency and its value and causes instability. Foreign
investors think twice before providing their funds when a particular country’s currency value is
high.

Exchange rates also affect banks globally — stable currencies such as the US dollar impact
other currencies, spending habits, and inflation rates in other countries.
Sociocultural factors:

Cultural influences, such as buying behaviors and necessities, affect how people see and use
banking options. People turn to banks for advice and assistance for loans related to business, home,
and academics. Consumers seek knowledge from bank tellers regarding saving accounts, bank
related credit cards, investments, and more.
Consumers desire a seamless banking experience. And technology is developing to allow
consumers to buy products easier, without requiring assistance directly from banks.

Technological factors

Technology is changing how consumers handle their funds. Many banks offer a mobile app to
witness accounts, transfer funds, and pay bills on smartphones.
Smartphones can scan cheques, and the bank can process it from their end, at their location. This
change helps to save paper and the need to drive directly to the branch to handle these affairs.

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Even banks themselves are utilizing technology within the workplace. Telecommunicating
through virtual meetings is being embraced. It replaces the need for in-person meetings.

Legal factors:

The banking industry follows strict laws regarding privacy, consumer laws, and trade structures to
confirm frameworks within the industry. Such structures are required for customers in the allocated
country and for international users.
Environmental

With the use of technology — particularly with mobile banking apps — the use for paper is being
reduced. Additionally, the need to drive directly to a branch to handle affairs is minimized as well.
Many issues are taken care of through mobile apps and online banking services. Consumers can
apply for credit cards online, buy cheques online, and have many of their banking questions
answered online or by phone. Thus, reducing individual environmental footprints.

7 Week wise activities

1st Week:

In the first week I learn about how to fill the deposit slip& documentation of depositing.

1. Cash deposit.

2. Cheque deposit.

2nd Week:

Learn about how to account will be opened and visa debit card procedure. Some kinds of

Accounts which are opened.

1. Current account.
2. Saving account.

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3rd week:
Learn about how to collect the files and then stored them with numbering and date wise schedule.

4th week:

In the 4th week I learned about the procedure of store issue such like old material, files and
machinery equipment’s.

5th week:

Learn about the procedure of hiring and selection and typing of call letters.

6th week:

In 6th week I learned that how to enter data of cheaque numbers and also learned a procedure of
issuing loan.

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8 Ratio Analysis NRSP BANK LIMITED

Balance Sheet

2016(audit 2015(audit 2014(audit 2013(audit 2012(

ed) ed) ed) ed) Annually)
Current Assets:

Cash & Cash 9589803 10269719 29026515 34831818 4179818

Equivalents 2
Accounts & Notes 16881442 15527617 20156759 23180273 2665733
Receivable, Net 4
Inventories 316708395 364590556 419282196 504146472 6061347
61
Total Current 343179640 390387892 468465470 562158564 6745902
Assets 77
Property, Plant & 28983089 33967862 40441500 52286500 6254544
Equipment, Net 0
Goodwill 100000 100000 100000 100000 100000

Vehicles etc 12673990 15104160 18387160 18395031 2234003

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other Assets 228900 235690 360690 365690 391189

Total Assets 385165619 439795604 527754820 633305785 7599669

42

Current Liabilities:

Short-term 238172564 269523256 317130132 362713961 4190170

Obligations 87
Accounts Payable 39209644 53142292 53573192 63142292 7015189
& Other Current 2
Liabilities
Income Taxes 2871428 3620556 4525694 5657118 7071397
and markup
Payable
Total Current 280253635 326286103 375229018 431513371 4962403
Liabilities 76
Long-term Debt 1021600 1021600 1174840 1351066 1553726
Obligations
Total Liabilities 281275235 327307703 376403858 432864437 4977941
02

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 Total equity 103890384 112487901 151350962 200441348 2621728
40
Total Liabilities & 385165619 439795604 527754820 633305785 7599669
Equity 42

NRSP BANK LIMITED

Income Statement

For the period ending on 30 June, 2016

2016(audite 2015(audite 2014(audite 2013(audite 2012(

d) d) d) d) Annually)
Sales 849952926 885258201 106230984 127477180 15297261
1 9 71
Less: Cost of 501472226 522302339 626762806 752115367 90253844
sales 1
Gross profit 348480700 362955862 435547035 522656442 62718773
0
Less: Admin 83837670 86852941 104278749 125253210 15041206
exp. 9
Less: Selling 184442873 191076469 250268998 290587446 33090655
and Marketing 2
expenses

Less: General 67070136 69482352 62567250 85172182 12032965

and Other 5
expenses
EBIT 13130022 15544100 18432038 21643604 25539453
Add: Other 0 0 1206742 2797350 4884866
income
NET PROFIT 13130022 15544100 19638780 24440954 30424319
BEFORE
TAXATION
Less: Provision 1644312 1061878 1536003 1812483 2138730
for taxation
NET PROFIT 11485710 14482222 18102777 22628471 28285589
AFTER
TAXATION

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9 Ratio Analysis

 CURRENT RATIOS:

This ratio measures the short-term debt-paying ability of the company

C. A
Current Ratio = C. L

Years 2016 2015 2014 2013 2012

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Current Ratio
1.2 1.2 1.25 1.30 1.36

ACID- TEST RATIO:

This ratio is like the current ratio but excludes current assets such as inventories and prepaid
expenses that may be difficult to quickly convert into cash.
Quick Ratio=Quick Assets / Current Liabilities

Years 2016 2015 2014 2013 2012

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103 375229018 431513371 496240376

Q Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356

Capital structure ratios

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  DEBT RATIO’S:
This relation measures what share of a company’s assets is add up by creditors.
DEBT RATIO: TD / TA

Years 2016 2015 2014 2013 2012

TD 281275235 327307703 376403858 432864437 497794102

TA 385165619 439795604 527754820 633305785 759966942

Debt
Ratio 73% 74% 71% 68% 65%

 D/E RATIO
This relation shows the degree to which debt is enclosed by shareholders’ funds. It reflects
the qualified position of the equity holders and the lenders and indicates the company’s
policy on the mix of capital funds.

D/E = TD / TE

Years 2016 2015 2014 2013 2012

TD 281275235 327307703 376403858 432864437 497794102

CE 103890384 112487901 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9

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PROFITABILITY RATIO’S:

It shows how doing well a company in consideration of generating income or earnings on the
Investment that it has made in the business. If a trade is liquid and efficient it should also be
Profitable. Ability to provide sufficient financial rewards for attracts and retains financing.

 RETURN ON EQUITY (ROE):

It measures the expertise of the management of the organization to generate sufficient profits for
the investment invested by the owners of a company. Normally a return of 10% would be attractive
to provide dividends to owners and have finances for future development of the company

R.O.E = N.I / C.E

Years 2016 2015 2014 2013 2012

NI 11485710 14482222 18102777 22628471 28285589

CE 103890384 112487901 151350962 200441348 262172840

ROE 11% 13% 12% 11% 11%

 NET PROFIT MARGIN:

There is a method to determines endure struggle and unfavorable situation like going up costs,
declining prices or decrease in sales in the future by the Profit Margin ability of a company. The
relation finds out the percentage of earnings produce per dollar of sales and therefore it is calculate
of effectiveness of the organizations.

N.P.M = NI /SALE

Years 2016 2015 2014 2013 2012

NI 11485710 14482222 18102777 22628471 28285589

Sales 849952926 885258201 1062309841 1274771809 1529726171

NPM 1.35% 1.64% 1.70% 1.80% 1.85%

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10 Application Of Class Room Teachings:

Marketing Management:

Marketing management in NRSP mostly focuses on the four functions:

1. Sell the service
2. Assess progress (is it selling?)
3. Ask customer about progress of selling.
4. Fix it, improve it

Human Resource Management:

7 steps that the NRSP HR manager practices on it are:

1. Performance measurement and evaluation.
2. Recruitment
3. Documentation
4. Training and development programs
5. Compensations and benefits
6. Legal issues and personal policies
7. Termination and transition

Principals of Management:

Principals of management increase the productivity level of the firm yet describe how the resources
are utilizing.

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of direction
5. Order

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 6. Stability of personnel

Accounting cycle:

The collective process of recording, analyzing and accounting the events of the company .there
are 9 steps of accounting cycle at NRSP.
1. Collecting and analyzing the data from transaction and events
2. Putting transactions into journal general
3. Posting entries into ledger
4. Prepare an unadjusted trial balance
5. Adjusting entries appropriately
6. Preparing an adjusted trial balance
7. Organizing accounts into financial statements
8. Closing the books
9. Preparing a post-closing trial balance to check the accounts

Operations of NRSP

1. Best loaning scheme

2. Health care
3. Banking and financial
4. State and local government

11 Suggestions

 NRSP must try to minimize the corruption level in that organization.

 Must find new source of deposits.
 Provide the best working environment to workers.
 Increase the salaries of all workers on their skills basis.

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  Give a good training to all employees about how they can motivate their new
employees.
 Create a good reward system for efficient and hard worker employees .

12 Conclusion

 All departments have very good working atmosphere.

 Manager was responsible and very hard working staff.
 There is high-quality inter associations among workers. Workforce is very gracious to each
other.
 The available resources are used properly by all departments.
 There is good power, to manage, organize and exchange a few words with its team, every
department’s manager has. They have well prepared their particular zone.

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13 References

www.google.com
www.ask.com
https://www.nrspbank.com/

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