SHAH ABDUL LATIF UNIVERSITY KHAIRPUR

DEPARTMENT OF BUSINESS ADMINISTRATION

Business Internship Report

On
NBP (Station Road Branch Sukkur)

By
Izhar Ali Shah (BBA IV 16-51)

Supervisor:
Prof: Dr. Muhammad Ismail Soomro

2019

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INTERNSHIP CERTIFICATE

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 DEDICATION
I dedicate this report to my parents and siblings who have always supported me that whenever I
need them I find them with me. It is their unconditional love and support that motivates me to
achieve higher goals.

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 ACKNOWLEDGEMENT
First of all, I would like to express my gratitude to Almighty Allah the graceful and merciful for
giving me the strength to complete the report.

My utmost appreciation goes to my Supervisor “Professor Dr: Ismail Soomro”, Institute of

Business Administration, Shah Abdul Latif University Khairpur. His encouragement helped me
put this work together and I am so grateful to him.

Since the beginning of my Internship program till the writing of this report, many people have
helped me through the ups and downs that I faced. It would be unfair to with if I didn’t name
them. I cannot miss to appreciate the Concern and help of Mr.SyedMutahir Shah and Amanullah
whose constant help made me able to write this report with the technical guidance. I’d also thank
the staff of thee Sabzi mandi Branch National Baank Of Pakistan Sukkur, who helped me in each
department, while I was working. They helped me in all aspects of work.

Finally, I am very thankful to my family members for their sincere help and care during this.

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 EXECUTIVE SUMMARY
This report is focused on National Bank of Pakistan and to be more precise it discusses the inner
details of the bank situated at Sabzi Mandi Sukkur.

The report is based on my Eight weeks internship program in National Bank of Pakistan. The
report summarizes the National bank of Pakistan with its working divided into eight main
chapters including sub parts.

The first and second part of this report describe the brief history and overview of the bank that
how the bank is established and its main competitors and also its organizational structure and
detail of the departments.

Then the third and fourth part describes the detail of internship program which is done in
particular departments for some period of time.

The fifth part describes the overall activities of internship which is done in the whole period then
the learning outcomes of the internship which is analyzed.

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6
 TABLE OF CONTENTS
Internship Certificate……………………………………………………………………...ii
Dedication………………….…………………………………………………......……... ii
Acknowledgements……………………….……………………………………….……. iii
Executive Summary…………...……….……………..……………………………….... iv
1. Overview of the Organization…………………………………...……..…… 01
1.1 History……………………………………………………………………………... 01
1.2 Introduction of the Organization……………………………………...……………. 01
1.3 Policies……………………………………………………………….…………….. 03
1.4 Competitors………………………………………………………………………… 03
2. Organizational Structure…………………………………………….…........ 04
2.1 Organizational Hierarchy Chart……………………………………………………. 04
2.2 Number of Employees…………………………………...…………………………. 04
2.3 Main Offices………………………………………………...……………………… 06
2.4 Introduction of all departments…………………………………….……………….. 07
2.5 Comments……………………………………………………………….………….. 11
3. Internship Activity Plan………………………………………………...…… 12
3.1 Introduction of Branch……….………………………………………....................... 12
3.2 Starting and Ending Dates of Internship……………………………………………. 12
3.3 Names of Departments……………………………………………………………… 12
4. Training Program…………………………………………………………… 13
4.1 The Operations/Activities Performed By the Department………………………...... 13
4.1.1 Activities Performed In Accounts Section……………………...……….... 13
4.1.2 Activities Performed In Remittance and Bill Section………...................... 13
4.1.3 Activities Performed In Advances Department….……………… ……......13
4.2 Projects/tasks assigned during training program………………..……..………...…. 14
4.2.1 Accounts Opening……………………………………………………...… 14
4.2.2 Dealing with Remittances & Bills…...…………………………………… 14
4.2.3 Advance Salary…………………………………………………………… 14
5. Reflective Journal Entries…………………………………….…...………… 16
5.1 First Week…………………………………………………………………….……. 16
5.2 Second Week……………….………………………………….…………………… 16
5.3 Third Week…………………………………………..…………………………....... 17
5.4 Fourth Week…………………………………………….…………………….……. 17
5.5 Fifth Week…………………………………………………………….……….…… 18
5.6 Sixth Week…………………………………………………………………….…… 19
5.7 Seventh week………………………………………………………………………...19
5.8 Eight week…………………………………………………………………………...19
6. Work Sample……………………………...…………………………………. 20

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7. Critical Analysis…………………….……………….……………………….. 21
8. SWOT Analysis…………………………………………………....…………. 22
9. Conclusion……...………………………………………………………...…. ..24
10. Recommendations………………………...………………………………… 25
11. References………………………………………………………..………….. 26
12. Annexes…………………………………………………………………….....27

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 1. OVERVIEW OF THE ORGANIZATION
1.1. History:
The history of National Bank of Pakistan is part of Pakistan’s struggle for economic
independence. 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 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 then, 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 National Bank of Pakistan came forward to establish its offices in the Cotton growing areas
and extended credit facilities liberally in order to restore stability to the market. In 1951, the
country was once again faced with a crisis in the cotton trade when prices was crashed and
touched the lowest level since independence following the cessation of hostilities in Korea. The
bank in collaboration with the cotton board provided the necessary Credit facilities to the trade
and the crisis was tided over.

The nature of responsibilities of the Bank is different and unique from other banks/financial
institutions. The Bank acts as the agent to the State Bank of Pakistan for handling
Provincial/Federal Government Receipts and Payments on their behalf. The Bank has also
played an important role in financing the country’s growing trade, which has expanded through
the years as diversification took place.

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1.2. Introduction:
National Bank of Pakistan is one of the largest commercial bank operating in Pakistan. It has
redefined its role and has moved from a public sector organization into a modern commercial to
individuals, corporate entities and government. While it continues to act as trustee of public
funds and as the agent places where SBP does not have presence portfolio and is today a major
lead player in the debt equity market, corporate investment banking,retail and consumer banking,
agricultural financing, treasury services and is showing growing interest in promoting and
developing the country's small and medium enterprises and at the same time fulfilling its social
responsibilities, as a corporate citizen. In today's competitive business environment, NBP needed
to redefine its role and shed the public sector bank image, for a modern offloaded 23.2 percent
share in the stock market, and while it has not been completely privatized like the other three
public sector banks, partial privatization has taken place. It is now listed on the
Karachi/Islamabad/Lahore Stock Exchanges.

National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It
has developed a wide range of consumer products, to enhance business and cater to the different
segments of society. Some schemes have been specifically designed for the low to middle
income segments of the population. These include NBP Cash n Gold.

Vision:

For NBP to recognized as a leader and a brand synonymous with trust with highest standards of
service quality, international best practices and social responsibility.

Mission:

NBP aspires to meet up to the values that make NBP truly the Nation’s Bank, by setting the
following goals:

1.3 Policies
 Policy is a projected program consisting of desired objectives and means to achieve them.
 Following are some policies implemented by NBP
 Provide job satisfaction to their employees
 Allow the employees to participate in the decisions that affect them.
 Good performance reward is also in the form of hajj and umrah package
 Use goals and feedback
 Developing a benefit package
 HR policies are in the form of circulars and instruction forms
 Organizing 08 weeks internship for the students
 NBP has no gender bias

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1.4. Competitors:
These following banks can be the competitors of NBP:

➢Habib Bank Limited

➢United Bank Limited

➢Muslim Commercial Bank Limited

➢Allied Bank Limited

➢Bank Al-Habib Limited

➢Bank Al-Falah Limited.

➢Standard Chartered Bank Limited

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 2. ORGANIZATIONAL STRUCTURE
2.1. Organizational Hierarchal Chart:
In National Bank of Pakistan, the head is called “Chairman” or “President” of the Bank. And
after President there is Five Broad of Directors. National Bank of Pakistan has eleven Groups
which control the working of the Divisions, Wing, Department, Section and Regional of the
national bank of Pakistan. In NBP, “Department” is called “Wings”.

Fig: 2.1 Organizational Hierarchy Chart:

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2.2. Number of Employees:
The employees, Who are working in this branch:

Manager: Syed Mutahar Ali Shah

General Operation Officer: Amanullah

Account Opening Officer :Saleem jatoi

Head Teller: Muhammad Azeem Sohu

Office Boy: Sohail

2.3 Main Offices:

Main offices of national bank of Pakistan: Main offices of national bank of Pakistan are working
as a head office for their concerned area. If any problem exists in any branch of national bank of
Pakistan, they make complaints or send queries to the main branch of their area and then main
branches direct contact to head office to resolve problem of any branch of national bank of
Pakistan.

Main branches of national bank of Pakistan perform major functions as compare to city branch
or other branches of national bank of Pakistan.

Main branches of national bank of Pakistan sanctions a huge amount of loan to clients whereas
the other branches can only disburse loan at a specified given amount.

In the whole all major works are done in main branches of national bank of Pakistan where as
other branches which are not main branches only performs general banking activities

Following are the main branches of national bank of Pakistan throughout the whole Pakistan:

CODE BRANCH

0301 Main Branch Abbottabad

0315 Main Branch Attock

0447 Main Branch Bagh

0307 Main Br. Bahawalnagar

0320 Main Road Chishtianbahawalnagaer

0421 Main Branch Chakwal

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0321 Main Branch Chitral

0326 Main Branch D.G. Khan

0327 Main Branch D.I.Khan

0008 Main Branch Dadu

0423 Main Branch Sammundri (faisalabad)

0342 Main Branch Jaranwala (faisalabad)

0425 Main Branch Gilgit

0418 Main Branch Wazirabad (gujranwala)

0569 Main Branch SaraiAlamgir (gujrat

0335 Main Branch Gujrat

0589 Main Branch Lalamusa (gujrat)

0336 Main Branch Hafizabad

0337 Main Branch Haripur

0014 Fatima Jinnah Road (Hub Branch) hyder

0341 Main Branch Islamabad (Hub Branch)

0002 Main Branch Karachi (south)

0019 Main Branch Sukkur

0345 Main Branch Kabirwala (khanewal

0349 GhallaMandi Branch Khanewal

0368 Main Branch MianChannu (khanewal)

0354 Main Branch Kohat

0441 Main Branch Kotli

0300 Main Branch Lahore (Hub Branch)lahore central

0348 Main Branch Kasurlahore east

0022 Main Branch Larkana

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0623 Main Branch KehrorPaccalodhran

0362 Main Branch MandiBahauddin

0364 Main Branch Mansehra

0365 Main Branch Mardan

0369 Main Branch Mianwali

0371 Main Branch Mirpur,(AK)

0374 Main Branch Multan (Hub Branch)

0402 Main Branch Shujabad (multan)

0377 Main Branch Muzaffarabad

0378 Main Branch Muzaffargarh

0381 Main Branch Narowal

0040 Main Branch Nawabshah

0383 Main Branch Okara

0386 Peshawar Cantt Branch (Hub Branch)

0393 Main Branch Rawalakot (poonch)

0393 Main Branch Rawalakot

0350 Main Branch Khanpur (rahimyar khan)

0057 Main Branch Sanghar

0312 Main Branch Bhalwal (sargodha)

0061 Main Branch Shikarpur

0403 District Court Sialkot (Hub Branch)

0434 Main Branch Pasrur (sialkot)

0065 Main Branch Sukkur

0406 Main Branch Swabi

0408 Main Branch Tank

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0070 Main Branch Thatta

0331 Main Branch Gojra (tobateksingh)

1734 Main Branch Kamalia(tobatksngh)

0314 Main Branch Burewala (vehari

0414 Main Branch Vehari(vehari)

497 Main Branch Mailsi(vehari)

2.4 Introduction of All the Departments:

I have worked in following departments during my internship at National Bank of Pakistan
which are described as follows:

a) Deposit Department

Deposit department deals with the money being deposited in the bank. For depositing money into
bank, a customer is required to open his account with the bank. There are two types of accounts
opened at NBP i.e. PLS saving account and the Current account. PLS saving account is mostly
used by individuals and current account is mostly used by businessmen or corporations. Saving
account holders are offered profits on their deposits whereas current account holders enjoy the
facility of payment on demand.

b) Advances/selling Department:

This department deals with provision of credits to customers and as the main product of the bank
is credit so it is also called as sales department or credit department. The bank has different kinds
of credit schemes for different kinds of target customers. These schemes are the main products
offered by the bank. NBP has a huge product portfolio examples include Cash Finance,
Agricultural Finance, Gold Loan, Personal Loans, Running Finance, Corporate Finance, Export
Import Financing, House Building Finance (Saiban) and NBP Karobar Scheme etc. Selling is
mainly done right at the desk of this department in every branch. Every region has a business
manager which is usually an SEVP of NBP and he is responsible for managing marketing and
selling activities in the region.

c) Government collection and disbursement department:

This department deals with the receipts and payments done by the bank being an agent of SBP.
NBP is the only bank that is working as the agent of SBP and it’s a heavy duty of colleting
government receipts like FBR taxes collection, Traffic Challans, Revenue receipts, Agri tax,
Utility bills etc.

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Similarly, bank is also disbursing money on behalf of SBP. Pension payment is one of the
heaviest functions performed by the bank. Along with pension salaries of government servants,
Zakat and Tax refunds etc are also disbursed by NBP Separate counters have been established at
many branches for facilitation of FBR tax collection.

d) Bills/ Remittances Department:

A very important department in the bank is bills/ remittances branch. This branch deals with the
disbarment and collection of money that is not directly paid or received by NBP. The money is
collected and disbursed at NBP counters but this money pertains to accounts of other banks or
institutions and not of NBP accounts. Various ways used by people to send and receive money
are Bank drafts, Telegraphic Transfer, Mail Transfer, Government Draft and Western Union
Money Transfer etc

The money is transferred to both inside the country and abroad. Customers can also collect their
money through bills by presenting cheque, bills for collections and drafts drawn at some other
bank or other branch of NBP within Pakistan. The instrument is presented at clearing house of
SBP where the bank got the credit and it is further disbursed to payee. Online banking is more
famous for this purpose these days.

e) Cash Department:

This branch deals with the withholding of cash money or currency notes. Main function of this
department is to have an eye on cash flows. Currency is kept in chests inside strong rooms at
branch level. Some branches have chest, some have sub-chests and others have no chests.
Currency is supplied by SBP and SBP also monitors its flow. There are only a few persons at
each branch who can open the chest. There is a limit on the amount of money kept outside of the
chest at any time. Cash In-charge is responsible for any discrepancy in the cash balance.

f) Compliance Department:

This branch deals with the monitoring of loan repayment and balances with other banks. This
department investigates about pending reconciliation items. Usually this is done half yearly.
Main duty is to ensure that transactions are treated correctly and in compliance with rules and
regulations and the balances are reconciled. This department is actually performing the internal
control function to ensure the achievement of objectives and mission of NBP.

g) Human resource management department:

NBP is the employer of choice. The whole NBP family comprises of committed and dedicated
members with passion to serve in their respective functional areas. The Bank has challenging
work environment where merit and performance help the individuals to explore their true
potential. As a caring employer the Bank enables the employees to excel and grow in highly
congenial employment conditions and culture. The career path is full of challenges and

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opportunities. The Bank has absolutely open culture where members share and communicate
freely.

The human resource management department of national bank of Pakistan aims to Provide more
talented Human Resource in all NBP functional areas in relation to competition keep motivated
all the employees and maintain total industrial harmony.

h) Treasury service department:

The NBP treasury and capital market group has developed a reputation of being the market
leader in coming up with customized solutions for a large and varied client base that is spread
virtually all across the country. The client base does not consist of only blue chips ones but
encompasses public sector clients, retail sector, multinationals, local conglomerates as well as
individuals.

National bank treasury is currently regarded as a market leader in both foreign exchange and
rupee denominated products because of its emphasis on service quality. Offers

Narrowest bid / offer spread and quickest on line quotes

Customized solutions to minimize risk and optimize returns as per the needs and circumstances
of the clients.

This branch deals with the monitoring of loan repayment and balances with other banks. This
department investigates about pending reconciliation items. Usually this is done half yearly.
Main duty is to ensure that transactions are treated correctly and in compliance with rules and
regulations and the balances are reconciled. This department is actually performing the internal
control function to ensure the achievement of objectives and mission of NBP.

2.5 Comments on organizational structure:

First of all an organizational structure defines how activities such as task allocation,
coordination and supervision are directed toward the achievement of organizational aims.
Organizational structure can also be considered as the viewing glass or perspective through
which individuals see their organization and its environment.

The organizational structure of national bank of Pakistan is clear to achieve its main task which
is to promote this bank more and more

The national bank of Pakistan trying to be the best bank after state bank of Pakistan that is really
good for customers, employees and other stakeholders

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 3. INTERNSHIP ACTIVITY PLAN
3.1. Introduction of Branch:
A brief introduction of National Bank of Pakistan New Sabzi Mandi Branch Sukkur: I did my 08
weeks of internship in National Bank of Pakistan new sabzimandi branch having code no: 2128
situated at society road near pakola chock sukkur. It is chest branch of this area and covers all the
sub chest and non-chest branches in its surroundings. The branch is located at a very commercial
and populated place.

NBP has a very beautiful building and good atmosphere. Employees of NBP have a very good
behavior with all of its customers and always respond to customers’ query that’s why national
bank of Pakistan has good customer equity. Most important thing the operation manager of NBP
main branch possesses a very good behavior and he is very kind to all and always keep smile at
his face. The branch starts its operations at 9:00 am sharp and very soon customers start coming
in bank for their work and staff is always ready to serve customers.

NBP sabzimandi branch possesses a good security system. For the security of bank police and
guards are assigned, at the entrance of hall there is electronic device or instrument recognition
door that identify if the entering person has any type of electronic device. CCTV cameras are
fitted into the roof of branch and these cameras play the role of mechanical guard to watch out all
the situations. Along this the video of each CCTV camera is shown in the LCD of operation
manager to keep an eagle eye on all matters. Fire extinguishers are also kept in bank for
unwanted situation to save the people from fire.

the service culture session was held in which it is described to serve the customers with
enthusiasm as they are the key element of any organization. Session was held for the day and all
the issues were discussed related to improvement of services, proper utilization of resources and
some beneficial amendments should bring in bank in order for highly achievement of NBP
throughout Pakistan than other banks

3.2. Starting and Ending Dates of Internship:

I started my internship at this branch from June 20th, 2019 to August 14th, 2019

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3.3. Names of Departments:
I worked in every department for 01 one as 08 weeks were given to me by Sabzi Mundi
branchsukkur national bank of Pakistan for internship so I divided these 08 weeks in 05 seats of
national bank of Pakistan. National bank of Pakistan consists following departments and they
are:

A. Operation

B. Cash Department

C. Agricultural gold finance seat

D. Cad (Credit Administration Department)

E. Compliance

A. Operation department:

Operation department performs all the operational work of bank that are considered as general
activities of any bank which mainly facilitates its customers for general banking purposes and all
are included in any commercial bank like account opening, remittances, depositing and
withdrawing of money etc

The operational department consists of following operational seats

i . Account opening seat or counter:

In national bank of Pakistan there are many types some are given below:

1. Current account

2. Pls saving account

3. Foree remittances account

4. Choice account

1: Current account:

Current account is that account in which the customer can withdraw his amount at any time;
there is no restriction on withdrawal of money. In current account there is no profit or Markup
given to customers on deposit. Current account is most popular among business men because
they use their money for their daily activities and it is easy for them to withdraw money from
that account.

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2: Pls saving account:

This Type of account is designated to encourage the saving of low level income means salaried
person, pensioners, widows, students’ Pls (profit loss sharing) means to share the profit and loss
with account holder, when banks earn the profit then share the profit rate with PLS Account
holder.

Pls (profit loss sharing) saving account is that account on which markup is given to customers at
their principal amount. Generally, Pls account is more preferable in middle class families.

Current and Pls account differs from customer to customer like individual current and Pls
account and joint current and Pls account

Individual account: This account is only for single owner

Joint account: Joint account is that type of account in which there are more than one holders of
account and they both have right to withdraw money from that account. Both holders of account
have full authorization over that

3: Foree remittances account:

Foree remittances account is used by those customers who receives money from foreign
regularly or on monthly basis. So in order to collect money on daily basis the national bank of
Pakistan provides this facility that the sender can directly transfer foreign remittances into
receiver account directly.

4: Choice account:

Choice account is very beneficial and customer friendly account which gives customers a lot of
advantages like in choice account cheque books are issued without any charges, transactions and
other things are made free of cost on which bank charge its commission.

Steps to open account:

 Customer should submit all the necessary documents like national identity card,
application for account opening, recent photographs of customers and other essential
documents for different types of account at the account opening seat.
 At the time of any account opening the verification of national identity card is
compulsory which is done through NADRA verification software. Head office of national
bank of Pakistan has given access to only main branch of national bank of Pakistan to use
that software by NADRA which provides the access to identification of any citizen of
Pakistan for verification and genuineness.

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  Account opening officer fill the online account opening form with the particulars of
customers and provides customer relationship form to customer for terms and conditions
and for signature provides signature specimen card.
 After filling all particulars, the account is approved by operation, area and compliance
manager.
 The signature of customer is uploaded in the system that can enable the customer to
access its account from any branch of national bank of Pakistan as it is facility for
customer that they can make transaction in their account throughout Pakistan from any
branch of national bank of Pakistan.
 It takes 1 to 2 days to open an account

ATM cards are also issued here and those ATM cards are debit card which are issued to customers. All
the works from account opening to issuance for ATM card is done on system named as profile system
authorized by head office Karachi NBP which integrates all the system of bank with each other. It is
customized software made from Malaysia for NBP

This counter also provides the facility of foreign remittances to customer that they can only receive
money from another country in shape of remittance but cannot send money to another country. The
money that is received from another country is called as E-remittances (electronic remittances) because
the customer is receiving it through electronic device like system on computer

There are some companies which only deals with the national bank of Pakistan for sending remittances
except of these companies, the customer would not be able to receive money from national bank of
Pakistan and the companies are given below:

o Xpress money
o Placid
o Ria
o IME/ bank al-jazira
o Transfast
o Ez remit

ii: Remittances seat:

Remittance is the transfer of money from one place to another whether it is inland remittances or outland
remittances.

Here inland remittances are received and transferred. Remittances are transferred through different
instruments like:

o Demand draft
o Payment order

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  Demand draft:

Demand draft is a popular mode of transfer. The customer fills the application form. Application form
includes the beneficiary name, account number and sender’s name. The customer deposits the amount of
DD in the branch. After the payment the DD is prepared and given to the customer. NBP official note the
transaction in issuance register on the page of that branch of NBP on which DD is drawn and will prepare
the advice to send to that branch. The account of the customer is credited when the DD advice from
originating branch comes to the responding branch and the account is debited when DD comes for
clearance.

There are two types of DD

Young DD: Through this amount of from 1 rupee to 10000 can be transferred

Big DD: Through this amount from 10000 to unlimited rupees can be transferred

 Payment order:

The payment order is a financial instrument issued by the bank on behalf of customer stating an order to
pay a specified amount to a specified person within the same city.

iii: Clearing seat:

This seat collects cheque from different banks and sends to NIFT (national institutional facilitating
technology) sukkur for clearing. This seat actually works for clearing of cheque whether cheque are from
different banks or from any other branch of national bank of Pakistan. The cheque which relates to other
banks are sent to nift for clearing but cheque which are from other branch of national bank of Pakistan
comes into clearance are not sent to nift.

There are two things in clearance of cheque that is through bank to bank and other is done through nift by
the online system. This seat actually provides the facility of transferring money to another bank, to
another person’s account in same bank and etc

Clearing is of two types:

Inward: Inward clearing is received earlier in the morning when Bank is opened.

Outward: Outward clearing is sent to NIFT at the time of closing of bank after recording entries in
journal

Clearing is dealt in two ways, local clearing and intercity clearing. Local clearing is done when you send
or receive cheque from the banks that are in your locality. For example: Sukkur to Sukkur etc.

Intercity clearing is done when you send or receive cheque from other banks that are away from your
locality. For example: Sukkur to Islamabad etc.

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NIFT: NIFT is an institute that plays a role of intermediary between banks. It links one bank to another
for facilitating customer if they receive cheque of one bank and having account in another bank.

iv: Government seat:

Government section in national bank of Pakistan is like a mini state bank it receives all types of provincial
as well as federal government receipts like passport and visa fee forms, property tax forms, domicile and
all other type of forms are received and collected here.

Government cheque are also collected and issued to the concerned people here. These all types of
government challans, receipts etc are posted to government account through system of bank and at the
closing the whole report of this transfer is sent to concerned institution and department.

B. cash department:

Cash department is the heart of this bank in which there is thousands of rupees are in strong room.
National bank of Pakistan starts with the cash department and ends up with this department. This
department is a very sensitive department as it consists of a lot of money in shape of deposit by customers
or some cash that is availed by state bank of Pakistan.

This counter receives or collects money for different government challans, payment order, utility bills and
different types of deposits in form of cash. One side this counter receives money and on the other hand
money is paid to customer on withdrawal from account. It also pays cash on call deposit.

This department provides the facility of prize bond to customers by government of Pakistan, these bonds
mature after every 3 months.

National bank of Pakistan offers following prize bonds with their face value:

 40000
 25000
 15000
 7500
 1500
 750
 200
 100

If the above prize bonds do not mature the holder of bond can resell to the bank and he will receive the
face value of bond

It also collects IBT form (Inter branch transaction) it is that form which is used online,

For example: a client has account in NBP main branch and he has to send money to his friend through
account directly so the customer will use IBT form to send money to his friend but the friends account
must be in another branch of NBP.

The different service charges on every receipt, challans, IBT form and etc are considered as bank earning

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At the end of every day transaction cash department make report of all cash whether in deposits,
withdrawal or in hand and send the chest balance or C.C report to head office and state bank of Pakistan

C. AGF (agricultural gold finance) seat:

National bank of Pakistan under AGF introduced the Kisaan dost, in this loan are given to customers to
support agriculture. NBP provides loans on following:

Agricultural production/ development scheme

 Construction of dairy forms

 Dairy purchase
 Fish pond construction
 Fish purchase
 Poultry farms
 Tube wells
 Tractor purchase

And other things related to agriculture

AGF is loan for development of agriculture and is given for agricultural purposes. Loan is given against
gold and pass book. AGF consist of 13.5% markup. National bank of Pakistan does not keep gold
bullions or raw gold as a pledge only ornaments made from gold are accepted as a security. AGF mainly
provides loans on agricultural production/ working capital

Now this loan is not only used for agricultural needs but also for other purposes and needs. Loan on gold
has 1 year of maturity and loan on pass book has 3 years of maturity.

In the sanction of loan on gold requires some necessary documents like CNIC of borrower and witness,
certificate of gold valuation from authorized goldsmith of NBP, then after making of proposal and all
requirements loan against gold is given to customer, but in the case of loan against pass book requires
deep investigation of land like field visit of that land, verification about the actual owner so when all
things are genuine, NBP take necessary.

documents same as on gold and after making proposal pass book is kept as security or pledge and loan is
sanctioned to customers within 15 days.

For sanction of every loan ECIB (Electronic credit information bureau) report is very necessary which is
authorized by state bank of Pakistan it shows that the borrower is defaulter in payment of any previous
loan or not and NADRA verification of identity is also must to do. Borrower of both loans whether
against gold or passbook can renew their account, after 1 year and after 3 years for gold and pass book
loan respectively

At the time of new case or renewal of loan bank charges the following fee from borrower

Processing fee= 500

ECIB fee= 150

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Insurance fee= 0.039 (market value x net weight gold x insurance fee)

Withholding tax= (cash=4%, transfer=6%) if above than 50000

If the borrower does not renew the loan and do not pay any markup and principal amount till 90 days his
or her account come into the category of classified account

CLASSIFIED ACCOUNT:

Classified account is that account in which no any payment is made till 90 days.

Bank sends 3 notices of information to borrower to pay markup with principal amount of loan to bank
after that your gold ornaments or land will be auctioned

D. CAD (CREDIT ADMINISTRATION DEPARTMENT):

CAD department is the backbone of national bank of Pakistan. It provides loan to customers as well as
employees of bank. A huge of earning of bank comes from this department because the loan that this
department sanctions provide a good profit in shape of markup that is big earning of bank

CAD offers following loans:

Car loan

Student loan scheme

NBP advance salary

Running finance

Cash finance

Car loan:

Car loan facility is given to the employees of NBP for purchasing car and it has 20 years maturity

Student scheme loan:

Student scheme loan is introduced to support the education and provide loan to those students who are
not able to pay high expenditures of education at a time. This loan has no any markup but the maturity is
8 years, the reason behind exemption of markup is that to spread social welfare by helping students

NBP advance salary:

NBP advance salary is given to any government employee of Pakistan whether he or she is employee in
NBP or not, it has 19% markup and 5 years of maturity. In this loan, 20 salaries are given to concerned
people and they can enjoy 20 salaries in advance. This loan is sanctioned with the permission letter or
application of work department head

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Running finance (hypothecation):

Running finance is also provided to small and medium enterprises with 7% to 8% markup and 2% for
bank earning called as spread rate. In this no any stock of product is kept in a shape of pledge to bank
only property is mortgaged. Running finance has 1 year of maturity

Cash finance:

Cash finance provides financial assistance to both small and medium enterprises for running their
business and operations. Bank keeps stocks of their production as a pledge and provides loan at the value
of these stocks, the property at which advances are given is also mortgaged by the bank. It has 7% to 8%
interest rate and one year of maturity

For approval of both loans running finance and cash finance, requires the high analysis of business detail
along its financial statements to see the financial position of business

whether the enterprise is able to earn and pay markup of bank or not. The borrower party provides full
detail of business in BCIL form (business credit information limited).

For sanction of every loan ECIB (Electronic credit information bureau) report is very necessary which is
authorized by state bank of Pakistan it shows that the borrower is defaulter in payment of any previous
loan or not

Many activities are carried out to sanction loan to party like field officers personally visit business
location, conduct interviews etc. There is third party involvement outsource (muqaddam)

The field officers also do the surprise visit of the borrower business to check out whether the loan is used
for that written purpose or not and to see the conditions of business after loan approval.

After investigating each and every corner of borrower’s business and approval through proposal, the loan
is disbursed to customer

Credit department performs the work of pre-sanction analysis of any loan or advance but the CAD do the
after or post sanction analysis if the cad founds any fault in the party or information related to business in
not genuine then the cad has full authority not to allow loan and except of cad no will be authorized or has
power to disburse loan.

In all big loans installment and markup payment is made quarterly.

Above all advances are funded advances except of this NBP also provides non-funded advance to
customer in which bank becomes the guarantor of the borrower party that if borrower defaults bank is
always here to pay back loan

CAD sends report of all these loans to head office of national bank of Pakistan Karachi and state bank of
Pakistan quarterly.

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E. COMPLIANCE DEPARTMENT:

Compliance department performs the work of fulfillment in bank. From each and every department
section, compliance department check out how much work has been completed, pending work and
unfinished work. Compliance department make the other department and seats to work and perform their
services within time.

This department covers 13 branches and is responsible for the completion of each work of these 13
branches.

Following branches come under this compliance department authorization:

1. NBP Sukkur Main branch

2. NBP Sukkur city branch

3. NBP Sukkur new sabzimandi branch

4. NBP Khairpir Main branch

5. NBP Kotdiji branch

6. NBP Kumb branch

7. NBP Chundiko branch

8. NBP Gumbat branch

9. NBP Agra branch

10. NBP DehPlaro branch

11. NBP Sobhodero branch

12. NBP Sugar mill branch

13. NBP Thari Mir Wah branch

Compliance department is liable and responsible for sending or reporting work or performance of bank to
head office Karachi every month. Compliance manager sends work report to head office .

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 4. TRAINING PROGRAM
4.1 Detailed description of operations performed by department in which I worked in:

During my 08 weeks internship in National bank of Pakistan, the departments performed various
functions like on the account opening seat on daily basis a lot of customers use to come for the opening of
their account for pension and salaries,

Whereas the remittances and clearing seat performed its functions very well which were and which are
assigned to them. The agricultural gold finance seat in my internship days tried their best to recover
amount of loan given to customers along with principle and markup. During my internship journey when
Eid came, the state bank of Pakistan sends their officers to the new sabzi mandi branch of Sukkur to issue
fresh currency to public so in managing a huge crowd of people cash department performed its functions
very well at the cash department by providing required amount of fresh currency to the public

The credit administration department in those days sanctioned amount of loan to a big party for the
business of petrol pumps station and also recovered student loan given to a student for educational
purposes.

4.2 Detailed description of task assigned to me:

In my whole internship no any specific task or project assigned to me but manager allow me to learn
work of all seats as possible as u can.

On my first day I started my learning with account opening I learnt how to open a bank account what is
the process and procedure. During this operation manager assigned me a little task to fill the forms along
with affidavit for the exemption of zakat from customers’ account. Account

Account opening officer sir saleem jatoi always teach me new things like how to issue and post ATM
card, recording entries of collection of ATM cards, how to issue E-remittances to customer with
procedure and making entries of it.

On the cheque book issuance seat due to a lot of work, manager assigned me the task to help the madam
at that seat. So, at that seat I use to issue cheque book to the customers

when they come bank to collect their cheque book and madam on that use to make record of issuance in
system through computer.

When I was rotated on the agricultural gold finance seat, there were a lot of works at that seat like making
final notice to customer to release their gold and make payment of loan with markup so area manager
assigned me task to come on Saturday and make all notice for the customers so I successfully made
notices and completed the given work

On remittances and clearing seat I just learnt work performed by remittances officer and clearing officer.
In starting days of clearing seat, I made entries of all outward cheque which we had to send to NIFT for
clearing

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In the cash department I passed cheque and issue amount to customers by debiting bank account. I
recorded the entries of government challans, taxes and passport and visa fee etc

And the last task which I found very interesting in cash department was counting of money like experts.
The officers at cash department taught me the method to count money fast without looking the money or
you would be able to count money if you are talking and you will not forget the counting in the middle.

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 5. REFLECTIVE JOURNAL ENTRIES:

weeks Performed Activities

1st

2nd

3rd

4th

5th

6th

7th

8th

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8TH WEEK

7TH WEEK

6TH WEEK

5TH WEEK

4TH WEEK

3RD WEEK

2ND WEEK

1ST WEEK

TASKS

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Followings are the comprehensive reflective entries during my internship program:

On my first day of internship, Branch manager assigned me a task to fill all those customers’ forms who
wanted exemption from zakat. I read that form and found what requirements are if we don’t want that and
deducts zakat from our account. I read many essential documents on AGF seat and on CAD which stated
rules and regulations for the sanction of loan and the documents were IBS and loan sanction proposal
documents.

I saw and observed many things like one day a lady came with a man to bank for her pension. The
pension officer said her to show face for identification, she refused to show face as we are syed and will
not show face to any man and forced to give pension without facial identification. When the problem got
serious it was brought to operation manager and operation manager said whether you are syed or belongs
to any caste you have to show your face for identification because it is state bank and government policy
and the policies do not consider veils or hijjab.

I was there in office and observing all this situation, then after a while operation manager gave her
leniency by sending her to the female officer to confirm her identity from picture by looking at her face
and manager also ordered me to identify her because he always use to say me that you are very talented
you are born banker because I am daughter of banker.

When all these things finished I asked the question “I can understand that identification is important but at
how much extent it is necessary” then former pension officer replied me that many cases of fraud has
been found in receiving of pension like few years ago I gave amount of pension to the pensioner for 5 to 6
months continuously but luckily one day operation manager told me that this person has been died for a
year ago so we closed that account and tried to recover that amount. To prevent from all these frauds, we
do a strict verification of customer.

6. WORK SAMPLE

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 7. C RITICAL A NALYSIS

a. O RGANIZING
P O O R F I L I N G S Y S T E M R E C O RD
During my internship in the bank, I observed that the filing system of the bank is not modern and
thus, it has a lot of potential for development and can be optimized and upgraded by using databases
and computerized system.

b. H UMAN R ESOURCE M ANAGEMENT

i. J OB A N A L Y S I S
The job analysis of the bank made me realize that some people are simple graduates therefore during
the hiring trained, skillful and job oriented people are encouraged for the job.

ii. E M PL OY E E A P PRE CI AT I ON
Another very important thing which is ignored by the bank is appreciation which is given to the
employee on their good performance. Hard work and performance of employee is not recognized and
appreciated which crates dissatisfaction and performance decline.

c. M ARKETING M ANAGEMENT AND C USTOMER R ELATION

M ANAGEMENT
i. C U S T O M E R D E AL I N G & S A T I S FA CT I ON
In NBP the dealing between the customer and the teller is well organized but during the rush
customers have to wait for long periods therefore it is very hard for a potential customer to get the
information. Facilities for customer service are not proper and sometime customer feels hesitation
before approaching a system which is apparently complicated due to poor presentation.

ii. LACK OF S E C RE CY OF C US T OM E R
The Bank duty is based on secrecy but employee don’t maintain secrecy especially during the rush
they speak loudly account position and clearance of cheque so person can get whole information from
the ledge.

iii. LACK OF B U S I N E S S C O M M U NI C AT I ON
There is no appropriate way to provide information to the customer. The Bank loses your confidence
if a minor dissatisfaction is created and tension in the mind of customer.

d. I NFORMATION T ECHNOLOGY
i. LACK OF C OM P UT E R T E C HN OL O G Y

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One of the problems that were faced by the employees was the lengthy procedure of the paperwork.
Moreover, the lack of computer technology is burdened over the bank employee so they are unable to
give proper attention on the clients and understand their difficulties during the doing job.

e. B ANKING AND F INANCE

i. L OW P R O FI T
NBP provides low profit rate to their customer so most of the customers have shifted their account to
the National Saving Center due to their high profit. NBP should increase their profit rates in order to
attract the customer.

ii. E FF I C I E N T B AN KI N G
Efficient banking is don’t emphasize on number of accounts but grater amount of deposit while in
NPB account are more but depositing are low.

f. C ONTROLLING
i. M A N A GE R A UT H O RI T Y
Manager has a limited authority he just approves the job so that when manager is not present in his
office. The customer having a wait for many hours and I observed that there are delays in sanctioning
loan cases form the head office which causes dissatisfaction to the customer.

g. P LANNING
i. I N C OM PE T E NT HOD’ S
I noticed during my work-span that the HOD’s in the bank used to slack during the peak hours,
HOD’s should be more active during the bank peak hours and interact more with the customers to
boost their confidence in the Bank. Theory X should not be followed but the Theory Y should be
followed to ensure more friendliness in the air and higher customer satisfaction.

ii. LACK OF P L AN NI N G A B I L I T I E S
I noticed that during the workload periods such as Pensioner’s first week of the Month, there was no
efficient plan devised by the Manger, he used to just sit around and wait for things to happen, while
employees do get frustrated and they do not work by heart which in turn effects the Bank’s productivity.

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 8. SWOT ANALYSIS
SWOT analysis is one of the most significant steps in formulating strategy using the organization
mission as a framework; managers evaluate internal strengths, typical competencies and
weakness and external opportunities and threats.

Then goal is to develop virtuous strategies and exploit opportunities and strengths neutralize
threats and avoid weaknesses with an overall organizational goal is to increase the wealth and
value of the organization.

STRENGHTS WEAKNESS
✓Oldest organization ✓ Marketing efforts are less than others
✓More deposits than other banks ✓It is under political pressure
✓ Employee benefits ✓ Favoritism and nepotism occurred in the
✓ Broad network of institution organization
✓Financial product is not good
✓Strictly followed rules & regulation
✓ Incompetent counter services in the rush
✓ Professional ability
hours
✓ Good environment
✓ Lack of computerized network in the
bank
✓ Lack of modern equipment in the bank
✓ Work distribution is not given equally

OPPORTUNITIES THREATS
✓ Electronic banking may increase its ✓ Appearance of new competitors
productivity ✓ Political pressure by the elected
✓ Micro financing to the needy people government
✓ Growing business and policies ✓ Downsizing
✓ Technological advancement ✓ Customer’s complaints
✓ Expand foreign operations ✓ Growing technological advancement
✓ Variation in government policies

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 9. CONCLUSION
During my entire training program, beginning from the internship till writing this report, I have realized
that the National Bank of Pakistan is a deliberate structured organization and it is serving its customers all
over Pakistan through its wide spread network of branches. It is offering many services and products at
easy markup rates to the valued customers. The customers are valued and are served at the first priority.
The employees of the Bank are very much cooperative and work whole heartedly thus working hard for
the success of the Bank.

Selections are made on the basis of merit but references and approaches are very much popular in
National Bank of Pakistan. The Bank serves the people well and it has initiated special moral initiatives
while distributing pensions among people, especially the old age people who come from far areas to get
their pensions. They are dealt very kindly and the Bank atmosphere is very customer friendly.

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 10. RECOMMENDATIONS
The following are the some positive suggestion & recommendation for the NBP.

 In my opinion the transaction process should be short so that the time is saved for
both the customers and the bank.
 Staff strength should be optimized and professional qualified persons should be hired
on the basis of merit.
 Personal Marketing & Professional attitude.
 Remove the Nepotism & Create Delegation of Authority.
 It is recommended that proper training should be provided to the staff members
which will ultimately increase the performance of Bank over all.
 To sustain the job satisfaction, NBP needs to offer promotions and incentives from
time to time.
 Environment and Atmosphere should be more renovated and decorated at the Branch
offices.
 The bank should spend more on renovation of the branches to improve environment
and atmosphere to attract the customers.
 NBP needs to implement computer software to handle the load of work.
 There is lack of counters in the bank; more counters shall be introduced to facilitate
the customers.
 NBP needs to launch mobile banking
 Only two guards were present at the branch, the security level was not so good at the
branch; security needs to be looked after.
 For old aged customers and pensioners the Bank needs to introduce a new counter as
well which is dedicated to them all day long.
 I saw no inspection team come in for inspection during my work span, inspection
teams should work more efficiently.
 At our branch there was no separate counter for Utility bills, there should be a
separate counter for all sorts of utility bills.
 They need to enhance the process of allotting loans to be in a quicker manner.
 Provide real information to the Shareholders.
 NBP is now needed to invest in those industries which are profitable for it e.g.
Pakistan Film Industry, Once again Establish the Textile Industry, Armed Force
Weapon Industry & also provide the Micro finance for the Home Industry.
 All of the above eventually provide satisfaction to the customer.

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11. REFERENCES

39
12. ANNEXES

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