Internship/Employment Report

19 February 2020

Internship/Employment Report
Bachelor/Master of Business Administration Program

Name: Tooba Riaz

Reg. No: 16-arid-4133
Specialization: Finance
Telephone: 03135672937
Email: noumankhilji32@gmail.com
University Institute of Management Sciences
University of Arid Agriculture Rawalpindi

Company Name: National Bank of Pakistan

Main Telephone Number(s): 0459-214031
Fax Number:
Postal Address: National Bank of Pakistan near Railway Station Kachery Road Mianwali

Supervisor Name: Hdayatullah Khan Avp.

Supervisor Telephone Number: 0459-214031

Start Date for Internship: 01.08.2019

End Date for Internship: 10.09.2019

Report Date:

02 February 2020
 Evaluation

Tooba Riaz
Completed internship at

National Bank of Pakistan Main Branch Mianwali

Internship/Employment report submitted for the Final Evaluation in
Partial Fulfillment of the requirements for the Degree of

Bachelors in Business Administration

It is certified that, the Internship/Employment report and the work contained in it

conforms to all the standards set by the Institute for the evaluation of any such work.

1. 
Ammar Asghar

2. 
Kaleem Ullah

3. 

4. 
Adnan Akhter

University Institute of Management Sciences

University of Arid Agriculture, Rawalpindi
 Dedication
I dedicate this report to my dear parents, teachers who helped me
gain the knowledge and to my group fellows who always helped me
with my studies since my first semester.
I also want to thank the staff of the bank who helped me learn the
basics of banking
Acknowledgements

You may write maximum of a page of acknowledgement of help and assistance from your
teachers, job supervisor, friends, family or any other.
Table of Contents
Executive Summary....................................................................................................................6
National Bank of Pakistan Overview..........................................................................................7
Organizational Hierarchy............................................................................................................9
Business Operations..................................................................................................................10
SWOT Analysis.........................................................................................................................11
Strength.................................................................................................................................11
Weaknesses...........................................................................................................................12
Opportunities.........................................................................................................................13
Threats...................................................................................................................................13
Marketing Strategy....................................................................................................................14
Competitive Strategy................................................................................................................15
Work Description......................................................................................................................15
Account Opening Department:.............................................................................................15
Remittance Department:.......................................................................................................16
Clearing Department:............................................................................................................17
Analysis.................................................................................................................................17
Conclusions...........................................................................................................................18
Executive Summary

I carried out my internship at National Bank of Pakistan Main Branch Mianwali, where I
learned multiple, basic banking activities and I had a good experience with the working staff
of the bank. I learned how to interact with different kinds of people, as they were our
customers so we had to take care of the them and help them in the best possible way we
could. The bank staff was very much cooperative with customers and tried their very best to
serve them and solved their problems related to the bank.
It was a very good experience for me as it was my first time to work in a professional
environment and learn some basics of the banking.
National Bank of Pakistan Overview

National Bank of Pakistan (NBP) is the second­largest commercial bank in Pakistan, with
market shares of 13% in terms of total deposits and 12% in terms of total loans as of 30
September 2017. As of 31 December 2017, it reported total consolidated assets of PKR2.4
trillion   ($21.4   billion).   Together   with   its   joint   venture   and   subsidiaries,   NBP   provides
commercial   banking   services,   including   modaraba   management,   broking,   leasing,   foreign
currency   remittances,   exchange   transactions,   asset   management   and   investment   advisory
services. As of 31 December 2017, the bank operated through a network of 1,498 domestic
branches, 21 overseas branches and four overseas representative offices. NBP was established
in November 1949 under the National Bank of Pakistan Ordinance 1949. Its shares are listed
on the Pakistan Stock Exchange (formerly known as the Karachi Stock Exchange; stock code,
NBP). As of 31 December 2017, the Government of Pakistan, via the State Bank of Pakistan
(SBP), owned a combined stake of 75.6% of its total share capital.

NBP organizes its activities under the following eight business segments: Corporate Finance;
Trading and Sales; Retail Banking; Commercial Banking; Payment and Settlement; Agency
Services;   Assets   Management;   and   Retail   Brokerage.   For   the   financial   year   ended   31
December 2017 (2017), the largest contributor to the bank’s total income was the Commercial
Banking segment (68.7%).

Corporate   Finance:  This   segment   provides   underwriting,   privatization,   merger   and

acquisition,  securitization,  research,  debt (government  and high­yield),  equity,  syndication
and secondary private placement services, as well as initial public offering (IPO) facilities. In
2017, it accounted for 1.3% of the bank’s total income.
 
Trading   and   Sales:  This   segment   offers   fixed­income,   equity,   foreign   exchange,   credit,
commodity, funding, lending and repo, and broking services. As of 31 December 2017, it
reported total consolidated assets of PKR685.7 billion ($6.2 billion), and accounted for 12.6%
of the bank’s total income in 2017. 

Retail Banking:  This segment provides retail and private loans, deposit facilities, banking,
trust   and   estate   investment   advisory,   merchant/commercial   and   private   label,   and   retail
services. As of 31 December 2017, it reported total consolidated assets of PKR184.9 billion
($1.7 billion), and accounted for 3.8% of the bank’s total income in 2017. 
Commercial Banking: This segment offers project, export and trade finance, as well as real
estate,   factoring,   lending,   guarantee,   bill   of   exchange   and   deposit   services.   As   of   31
December 2017, it reported total consolidated assets of PKR1.5 trillion ($13.5 billion), and
accounted for 68.7% of the bank’s total income in 2017. 
Payment   and   Settlement:  This   segment   provides   payment   and   collection,   clearing   and
settlement, and fund­transfer services. It accounted for 0.9% of the bank’s total income in
2017.

Agency   Services:  This   segment   offers   escrow,   securities­lending,   depository   receipt,

corporate action, issuer and paying agent services. It accounted for 10.6% of the bank’s total
income in 2017. 

Assets Management: This segment provides asset management, modaraba management and
investment advisory services. As of 31 December 2017, it reported total consolidated assets of
PKR2.2 billion ($19.4 million), and accounted for 1.9% of the bank’s total income in 2017. 

Retail   Brokerage:  This   segment   includes   stock­broking,   investment­advisory   and   fund­

placement services. As of 31 December 2017, it reported total consolidated assets of PKR1.2
billion ($11.0 million), and accounted for 0.2% of the bank’s total income in 2017.

Describe the company with whom your internship/employment was carried out with a brief
overview of its past, present and the future outlook. Mention the background to your
involvement with this company, including the location of the facility at which the work was
done. Describe your position and the basic areas/specializations in which you worked for
your internship.
Organizational Hierarchy
Business Operations
 
SWOT Analysis
For the Environmental scanning of the organization SWOT analysis is done. It is the analysis
of Strengths, Weaknesses, Opportunities and different Threats an organization may face from
the external environment. NBP’s SWOT analysis is:

Strength
Major Strength of National Bank is its Brand Image and its Brand Name. NBP is considered
to be the Pillar of Pakistan’s economy. NBP has the caliber to compete with Pakistan’s best
Multi-National Banks and has the ability to keep up with the newly emerging trends of
modern banking and computer systems. Over the years, NBP’s reserved funds have been
increased. NBP is expanding business worldwide which truly is an advantage over rest of the
Banks in the Business. NBP holds a vast group of customers globally and locally. A few more
strengths of NBP are.

A Cultural Organization
Being a trustee and an agent of State Bank of Pakistan, NBP takes pride in being a cultural
organization, helping customers and citizens of all walks all around the country and is one of
the few Banks which has presence in every city of Pakistan.

Friendly Policies
Unlike other Banks in Pakistan, NBP ‘s customer relation and customer management policies
are more intended towards the customer and are friendly, which in-turn increases the customer
trust on the Bank increasing profits. Schemes like Kisan Dost, and Rozgar scheme have
helped many people to grow their businesses.

Special Policies for Industries

Schemes like Investor Advantage promote Industries; NBP has a huge pool of Industrial
customers at its disposal.

One of the Best Research team

As stated before, as a trustee of the State Bank of Pakistan, National Bank has an elite class of
researches and Financial think tanks, who are constantly working on making the Bank’s
operations more smooth and reliable and attaining the efficient results.

Strategic Management
The top management of the Bank as stated earlier is highly strategic; they devise the strategies
after consulting with the researchers, and approve strategies which in turn benefit the Bank in
long run.

Easing the customers

Having Branches all over the country is one way of providing ease to customers, along with
this facility of having a local Bank, NBP’s policies are highly customer oriented.
AAA/A-1+ rated bank
State Bank of Pakistan has rated NPB as AAA/A-1+ Bank. This indeed shows the strength of
the Bank.

Having the largest number of accounts in Pakistan

Due to having branches in all over the country NBP has achieved the milestone of having
largest customer pool as compare to any other Bank in Pakistan.

It is a Government Bank
Most of the Government Issues, like pensions, funds and other funds are dealt by NBP, being
a Government Bank; it serves the people in every way, where State Bank cannot reach.

Weaknesses
Downsizing has been the biggest weakness of NBP. Many devoted employees were asked to
leave because of the downsizing. Lot of confusion is found in the employees.
High level Managers are hired from famous institutes and organizations. As those employees
have a different background, it makes it difficult for them to make healthy decision which can
be in benefit of this bank. Downsizing caused many customers of NBP to leave. This
downsizing caused threats to the bank as the competitors took advantage. NBP is losing the
Market share and its customer’s streamline. Few major weaknesses of NBP are given below.

Rural Sector development is given less attention

The more farther you go from big cities, the less attention is given to the Banks.

Lack of Network Capabilities

Networking Infrastructure in our Bank was pathetic. Also the communication between the
branches is very hard and time consuming.

Poor Advertisement plan

During my internship and when I wasn’t doing internship, I have always seen NBP on a back
foot when it comes to advertisement. No advertisement plans are implemented; I could hardly
find any brochure or flare in our Branch.

Lack of Technical Knowledge

I observed the employees of the NBP are not technical y well equipped, they lack the basic
know how of the computer.

Ambiguous Job Descriptions

Roles of the employees are not properly defined, I saw quiet a few workers changing seats,
handling cash, entertaining customers, the job descriptions shall be properly written and
implemented strictly.
Opportunities
A very bright professional future lies ahead of NBP. NBP has devised a huge plan to earn back
its lost position and the customer streamline from just like they had in the past and to increase
their profitability and regain the trust of the customers just like they used to have in the past.
Furthermore, NBP is the only bank which gives general public the ease of submitting their
utility bills all day long. The goodwill of the NBP is something that no competitor can achieve
the way NBP has done it.

Good Image among the people

Being the People’s bank and having trust of the customers is a great advantage for the Bank to
achieve new horizons of Banking and success.

Rapid Industrial growth

Industrial growth in the country is a great opportunity for the Bank to introduce new
opportunities and schemes for industrial customers and increase the Bank’s Potential.

Now introducing the Micro financing

Micro Financing has also been introduced to attract big investors.

Agent of State Bank of Pakistan

as stated few times earlier, being the trustee and agent of the State Bank Pakistan, this mark
and label can help the Bank to achieve success in the coming future.

Training and Discipline

Bank staff should be more professional and equipped with the Basic IT Knowledge and know
how to use the Computers.

Threats
Small Banks are not a threat to NBP’s reputation as the Customer Pool of NBP is full of huge
investors so these small banks cannot threat the integrity of NBP. But the major rivals of the
Bank include HBL and Bank Alfalah which can be a threat to NBP as they are emerging very
fast. Some of the other treats that NBP is facing are:

Political Instability in the Country

Political Instability in the Country is a major threat for the Bank as the Bank is acting as the
trustee of State Bank Of Pakistan.

Newly emerging competitors

Increasing competition is resulting in losing the customers.

Lack of Modern Techniques

NBP lacks the Modern Banking Techniques. Which gives its competitors an advantage to take
over the bank in customer number.

Increasing Customer Complaints

Customers are complaining about the incompetency of the staff.

Competition is increasing day by day

New banks are opening, competition is increasing, NBP needs to improve quality or they will
end up losing their existing customers too.

Marketing Strategy

Customer Service Quality

We proactively identify our customers and their banking requirements, which are broadly
categorised into four basic categories. Our diversified and comprehensive products and
services package caters all credit and non-credit financial requirements across the customer
and client spectrum. Individuals can benefit from a large array of our products i.e. a safe place
to deposit their savings, government employees can obtain financing against their salary, can
obtain mortgage finance as a first step towards building a home or can benefit from our home
remittance service to receive cross-border funds from their family members abroad. For
businesses, NBP is all there to help entrepreneurs launch a start-up, fund their balance sheet
growth, manage payments timely & securely, expand internationally, manage financial risks
effectively, and deal with thousands of business counterparts globally through our branches
and representative offices.
We proactively identify our customers and their banking requirements, which are broadly
categorized into four basic categories. Our diversified and comprehensive products and
services package caters all credit and non-credit financial requirements across the customer
and client spectrum. Individuals can benefit from a large array of our products i.e. a safe place
to deposit their savings, government employees can obtain financing against their salary, can
obtain mortgage finance as a first step towards building a home or can benefit from our home
remittance service to receive cross-border funds from their family members abroad. For
businesses, NBP is all there to help entrepreneurs launch a start-up, fund their balance sheet
growth, manage payments timely & securely, expand internationally, manage financial risks
effectively, and deal with thousands of business counterparts globally through our branches
and representative offices.
Competitive Strategy
NBP continued its journey of success based on our strategy of serving clients better. Company
agile enough to take advantage of its unique domestic and international footprint, capitalizing
on the largest balance sheet and customer base in Pakistan with high cross sell potential. Our
standalone AAA rating( the highest in the industry), our RoE , which is amongst the highest in
the Asian banking industry, and our comfortable capital adequacy ratios, position us well in
front of our competitors for future growth.

Work Description

Major activities performed during my internship program are as follows;

Account Opening Department:

Filling the forms and guiding the customers who were unable to fill their forms was my task, I
used to check all the requirements and document attachments, and send to who would sign all
the documents and then sign from all the concerned personnel was taken and new account
opening was initiated, normally new account opening takes 3 to 4 days. Here I observed
Account opening process. I also learnt about the basic requirements for opening up an account
in NBP. Opening an account means that customer establishes a relationship between the bank
and himself.
Just like other Banks, NBP also makes sure that the Applicant applying for the account is a
intended customer or not. After verifying this, Applicant’s occupation, integrity and nature of
business are determined via references. The margin of error at this time is very less, a little
mistake can lead to greater problems.
To keep the process of account opening concrete and in-order, the Federal Overseer of the
Banks of Pakistan has obligated all the Banks to keep all the details and performas of the
process of account opening along with all the details of the person who introduced the
customer to the Bank. It is because of this Obligation Branch Managers need to get all the
records and Credentials of the Applicant and the Introducer.
During my work span in the Account Opening section I was directed by my seniors to keep in
mind a few points which are the main requirements for an applicant to open up an account.
They are as follows:
i. Applicant must be introduced or referenced by another
existing customer of the Bank.
ii. Signatures of the account holder are taken on the account
opening forms and are verified by the Bank Officer.
iii. Bank requires copy of the NIC’s as well.
iv. Bank keeps the right to reject the application of the customer
without any reason.
v. A unique account number is allotted to the applicant.
vi. Nature of the account determines the amount deposited at the
time of opening an account.
During my work-span, and experience at NBP, that when an applicant applies for to open a
new account, the officer at Bank provides the applicant with application form, the necessary
information to be known by the bank need to be filled by the customer. This application form
also requires all the documents and attachments needed from the customer side.
Basic needs of the Application form are
i. Account Title
ii. Applicant’s Full Name
iii. Customer’s Occupation
iv. Customer’s Address
v. Customer’s Telephone Number
vi. Account’s Currency
vii. Business Nature
viii. Name, Address and Number of the Referencing customer
ix. Accounts= related special instructions
x. Amount to be deposited initially in the account
xi. Applicant’s Signature

Remittance Department:
Another important department in the bank is remittances. People send their money to the other
persons and organizations through various way i.e. Bank draft, Telegraphic Transfer, Mail
Transfer, Coupons, Govt. Draft and Western Union Money Transfer etc. It works both inward
and outward.
The customers collect their money/amount through bills. They present their cheques, drafts
and other bills for collection within the city and out of the city through mail. Now a days
Online Banking is becoming more popular for this purpose but the branch where I got training
did not have this facility.
Here in Remittance Department, I used to make Pay Orders, DD’s, fill transaction forms, cash
transfer forms, also made DDR’s, During making these transactions I also kept a check on the
Customer’s account as if it is closed or not. I also worked on the Cash Counter to give away
amounts on cheques after they were entered into our system. Accepted utility bills from the
customers.

Clearing Department:
I worked in clearing section where my main responsibilities were to clear the cheques and
securities.
There are two stamps put on each cheque, sent for clearing:
i. Crossing Stamp
ii. Manager Stamp.

CC controls the intra cities cheques. First these cheques are noted down in a daybook, here
different numbers are allotted to these cheques. After entering the cheques and assigning
numbers to it, a Performa in which details on who draw the money, cheque number, the
amount, who is taking money are recorded. After this, the cheque is posted along with its
filled Performa.
Here I used to enter data on the cheque into the computer system to check weather the account
with-holds this much amount, after the verification of the amount, the transaction was made
into the system and, as the bank still uses the old forms of record keeping, a register is also
maintained and I entered the amount, name of the person withdrawing the money in case of
open cheque date and signature of the withdrawing person if it is other than the account
holder, and stamped the cheque to declare it to take money from the counter and give the
customer a token and write the token number on the cheque so the money counter can call the
specific customer, here I felt the need of modern Banking system as they have automatic
counters and computerized buzzer systems which were not available in that Branch of NBP.

Analysis
Internship plays a very important role in the professional life as it allows you to understand
the value of punctuality, discipline, hardworking, working honestly, working with your
colleagues, meeting different types of people and interacting and taking care of your
customers, I learned the importance of these things.

Describe the usefulness of your internship/employment work in advancing your

understanding of the subject/specialization. What did you learn from this experience? Include
both the technical and non-technical learning (for example, you might describe such things as
how your organization was structured, how individuals worked together in your company,
how technical employees interacted with customers, what company initiatives you observed,
the importance of your job in overall business activity of the organization etc.)
Conclusions

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.

Appendices
a. Internship/Employment Completion Certificate (if you don’t have any make sure
that it has been sent directly to the Director UIMS)
b. Documentary evidence of your attendance
(i) Include copy of the relevant page(s) from the standard daily attendance
register).
(ii) Include copy of the Cheque(s) received as stipend/salary if any.
c. Printed internship presentation (4 slides a page).