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Internship Report On National Bank of Pakistan L Branch Abbottabad (1907)
Internship Report On National Bank of Pakistan L Branch Abbottabad (1907)
Internship Report On National Bank of Pakistan L Branch Abbottabad (1907)
Submitted by
Muhammad Usman
Roll #: S-015-2015
Supervised by
Sardar Ejaz Ahmed
2015-2018
i
INTERNSHIP REPORT ON
Roll #: S-015-2015
ii
Government College of Management Sciences
Abbottabad
APPROVAL SHEET
Approval Committee
1. Supervisor
2. Head of department
3. External Examiner
Mr.______________________ Signature______________________
iii
DEDICATION
Dedicated to
&
iv
ABSTRACT
Banks play very important and vital role for the economic growth and sustainability of
economy. The bank deals in money, such institution are also required to fulfill other financial
needs such as provision of place to deposit money, serving for the utilities and advancing
money in order to facilitate the needs of householders and the businesses. In this report the
financial position of NBP has been studied and analyzed.
The methodology for data collection that was available resources by the organization, like
website, annual reports, books, articles publicly available data, etc. also, interviews with
some employees and observation methods were used. In the first chapter introduction to the
report, background of study, scope of the study, merits, limitation, and scheme of the study
are given. The report covers the history of NBP bank, introduction of NBP, its background,
role and functions, its core values, and miscellaneous topics related to Marketing department
of NBP Bank
Ultimately whole argument comes down to this: the bank is functioning in a proper &
systematic manner, but need more competitive strategies, long term debts, & outside
creditors, creditors should provide the funds to meet the SBP policies to have the maximum
branches.
In this report, I also included the financial analysis that helps to know that where the NBP is
strong and where it needs improvements. NBP offers new products and services day by day
for improving its performance, but there are many hurdles in the way of success of NBP, all
the recommendations are given in the report and there solutions as well as that can be helpful
in the success of NBP in future.
v
TABLE OF CONTENTS
Chapter 1.......................................................................................................................................1
Introduction of Study...................................................................................................................1
1.1 Background of Study................................................................................................................1
1.2 Objectives of study...................................................................................................................1
1.3 Scope of Study..........................................................................................................................2
1.4 Limitations of the work.............................................................................................................2
1.5 Benefits of the Study................................................................................................................2
1.6 Research methodology..............................................................................................................3
1.6.1 The major sources for Primary data includes.................................................................3
1.6.2 The major sources for Secondary data includes.............................................................3
1.7 Scheme of the report.................................................................................................................4
Chapter 2.......................................................................................................................................5
Introduction to organization (NBP)............................................................................................5
2.1 They aim to be an organization that is founded on…................................................................5
2.1.1 They aim to be People who…........................................................................................5
2.1.2 They have confidence that tomorrow they will be….....................................................6
2.1.3 Evaluation of Banking / Industry in Pakistan.................................................................6
2.2 Historical Introduction to the organization (National Bank of Pakistan).................................7
2.2.2 Credit Rating..................................................................................................................9
2.2.3 Present status.................................................................................................................9
2.3 Organizational structure of NBP.............................................................................................11
2.3.1 Board of Directors.......................................................................................................12
2.4 Senior Management................................................................................................................13
2.4.1 Senior Management for Overseas Operation...............................................................15
2.5 Vision and Mission Statements...............................................................................................16
2.5.1 Mission........................................................................................................................16
2.6 Objectives of National Bank of Pakistan................................................................................16
2.7 Core Values.............................................................................................................................16
2.8 Internal Structure of Bank Branch..........................................................................................18
Chapter 3.....................................................................................................................................20
Product and services...................................................................................................................20
3.1 Deposit Department................................................................................................................20
3.1.1 Account opening..........................................................................................................20
3.1.2 Procedure of Account Opening....................................................................................20
3.1.3 Documents Required....................................................................................................21
3.1.4 Issuance of Cheque Book.............................................................................................21
3.1.5 Cheque Cancellation....................................................................................................21
3.2 TYPES of Accounts................................................................................................................21
3.2.1 Current Account...........................................................................................................21
3.2.2 Profit & Loss Sharing Saving Account........................................................................22
3.3 Problems in personal account...............................................................................................26
3.4 Advances department..............................................................................................................27
3.5 Types of financing..................................................................................................................27
3.6 Western union.........................................................................................................................30
3.7 Clearing department................................................................................................................30
3.8 Foreign exchange department.................................................................................................31
3.9 Types of Cheque.....................................................................................................................34
3.9.1 Bearer Cheque.............................................................................................................34
3.9.2 Order cheque................................................................................................................34
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3.9.3 Crossed Cheque...........................................................................................................35
3.9.4 Payment of Cheque......................................................................................................35
3.10 Remittance department.........................................................................................................35
3.11 Demand draft (Dd)...........................................................................................................36
3.11.1 Charges for Issuance of DD.......................................................................................36
3.12 Telegraphic transfer (TT)....................................................................................................36
3.13 computer department............................................................................................................38
3.14 Establishment department.....................................................................................................38
chapter 4......................................................................................................................................39
Makrketing..................................................................................................................................39
4.1 Structure of the Marketing Department.............................................................................39
4.2 Functions of the Marketing Department.................................................................................40
3.3 Structure of the Sales Department..........................................................................................43
3.4 Function of sales department...................................................................................................43
3.5 Customer services.................................................................................................................45
3.6 PEST ANALYSES..................................................................................................................47
CHAPTER -5................................................................................................................................50
SWOT ANALYSIS.......................................................................................................................50
5.1) STRENGTHS OF NBP........................................................................................................50
5.2) Weaknesses of NBP.............................................................................................................51
5.3) Opportunities of NBP...........................................................................................................52
5.4) Threats.................................................................................................................................52
Chapter 6.....................................................................................................................................54
Conclusion and recommendations.............................................................................................54
6.1 Conclusion..............................................................................................................................54
6.2 Recommendations...................................................................................................................54
References....................................................................................................................................61
vii
ACKNOWLEDGEMENTS
With the name of ALLAH the Most Beneficial and Merciful. I completed my internship in
National Bank of Pakistan Lora branch. I am really pleased to have a professional learning
experience in one of leading organizations of country. In these 8 weeks I worked in different
departments and I am truly thankful to all officers and staff who entirely give assistance to
me. I am also grateful to my honorable supervisor Sardar Ejaz Ahmed, and all other
teachers who motivated me to work hard and taught me techniques to learn work. The
account of acknowledgement will remain incomplete if I do not express my sincere
appreciation, indebtedness and gratitude to my parents and siblings. They have always been a
source of encouragement for me.
And last but not the least I would like to express my gratitude to all the staff of NBP Lora
branch Abbottabad.
Muhammad Usman
viii
LIST OF ABBREVIATIONS
SS Specimen signature
VP Vice president
ix
EXECUTIVE SUMMARY
This internship report is related to national bank of Pakistan, being a government bank it is
operating in almost every part of the country that is why it is the largest bank of Pakistan.
Furthermore, NBP has its network outside national boundaries of Pakistan. To know about
the functions and procedure of any organization it is very important to work there for
minimum six months than you may able to understand this thing. The intense competition,
among banks, the privatization of the financial institution and financial liberalization in
general are gradually and continuously making the banking sector effective and efficient.
The basic purpose of this report is to describe and define different functions and products of
the bank, to identify weak areas of the bank, to analyze the performance of the management
and to make a financial analysis of it and suggest recommendations. It is also our degree
requirement to do an internship in any company so the basic purpose of this report is to fulfill
the Bachelor degree requirement
The report actually gives the following information, which I have divided in different
chapters. First chapter is about introduction to the report, background of study, scope of the
study, merits, limitations, and scheme of the study. The second chapter is related to history of
banking, banking in Pakistan, introduction to the organization, its historical background, role,
and functions of organization, its core values, and collection of topics related to banking.
Third chapter covers the organizational structure of NBP, different departments working at
NBP and different financial products of NBP. The fourth chapter of this report is related to
the analysis and the findings, which have been observed. It includes the financial analysis;
Analysis no doubt acts as a mirror for the management. In addition, management should
develop plans to avail any opportunities which is been created by the environment because it
is very important in this competitive world. At the end of this report there is
recommendations based on the analysis.
x
CHAPTER 1
INTRODUCTION OF STUDY
Starting with the name of Allah, I am going to write my internship report as
part of the academic requirement for the completion of 4 years year’s study
in BBA Hons. Therefore, we the students of Management Sciences are
required to undergo an internship program for the period of 8 weeks as an
internee in an organization. This internship helps me to gain the practical
knowledge of working environment of the banking sector of Pakistan.
1
To study the organizational management structure.
To make possible recommendation in the light of analyses.
To study the working environment of the organization.
To apply the knowledge gained in practical field.
1.3 SCOPE OF STUDY
There are some limitations which internee had to face during the internship
program, which are described as under:
The period of two months was too short to properly understand and
analyze all the operations of bank.
Manager and other staff members have busy schedule due to this reason it
was a great problem for them to spend time with internee, so it is not easy
to learn or to gain knowledge from them.
Some of the data was confidential and that was not made available to me.
2
work for that specific company. This adds to his experience, an internship is
a great opportunity to improve interpersonal skills. Practical also provides
the opportunity to gain self-confidence. Moreover, it Figure out what one’s
strengths are and also a good time to identify one’s weakness so that he can
improve them.
National bank of Pakistan is one of the leading and establishes banks of the
country. It has a large setup of departments and a big organizational
structure. While working in a Lora branch Abbottabad of the bank, it is
not possible to thoroughly cover all the areas of the bank, as it requires
more time and two months are in no way sufficient to do so. Different tools
and techniques were used to gather relevant information for writing the
report. Secondly, journals from regional head quarter and staff college was
also reviewed which gave very useful information about the functioning of
the bank. I also visited the national bank of Pakistan’s official web site,
which gave very useful information about the services provided by the
bank.
Personal observation
Interviews of management
3
Books
Internet
Official web site of NBP and some other relevant sites mentioned in the
references
Chapter 4 includes the SWOT and ratio analysis and their interpretation.
4
CHAPTER 2
INTRODUCTION TO ORGANIZATION (NBP)
5
2.1.2 They have confidence that tomorrow they will be…
Leaders in industry.
An organization will take the trust of S&h.
2.1.3 Evaluation of Banking / Industry in Pakistan
A number of banks closed their branches with the result that only 81
branches remain ed open on 30th June 1948 out of 487. The head offices
were in India and most of their employees were Hindu, and they fled to
India. Imperial Bank of India, Which was conducting government receipts
and payments, closed down most of its branches thus blocking the funds
needed by the government?
6
Quaid-e-Azam Muhammad Ali Jinnah on 1st July 1948. This bank lost on
time in meeting the national requirements of banking, currency and took
following remedial measures. Requested Government of state a new bank
of nation wide services accordingly National Bank of Pakistan was formed
in 1949 which opened many branches and in 1952 took over the emperor
Bank of India. It will draw Indian Currency notes of Rs: 125 crore from
General Circulation and send these for recovery to reserve Bank of India.
National bank was establish in November 09, 1949 under NBP ,ordinance
1949, in order to handle the crises condition which was develop after
Deadlock with India and the devaluation of Indian Rupee in 1949. The
bank proved all type of banking services to the government in general
public. It works as agent of sent real bank because the SBP dose not has its
own branches.
The bank schedule commercial bank and its principally engaged in the
business of banking as defined in the banking company's ordinance 1962.
National Bank of Pakistan was basically established for reducing the
difficulties of east Pakistan farmers engaged in jute and patens” after mass
migration of community from east and west Pakistan in India. The bank
commenced its operation in November 20.1949 at six centers of jute in the
then East Pakistan. Lahore and Karachi officers were opened subsequently
7
in December 1949. Before restructuring in 2002, national Bank of Pakistan
with its head office at Karachi operates through 9 regional headquarters at
Lahore, Karachi Hyderabad, Quetta, Peshawar, Multan, Muzaferabad,
Fasilabad and Islamabad.
The bank was incorporated with authorized capital of 60 millions .in 960
this amount was redacted to the 30 millions banks issued 15 millions of
which 25% was subscribed by the government and the balance was offered
to the general public .shears to the public where issued in 1950 and where
quickly taken up. In 190 banks ordinance was amended so that it take
ordinarily commercial banking business. On janvery-01-1974 national bank
along with thirteen others commotional banks where nationalized under the
promulgation of “nationalization” act 1974 and the shears not held by the
government where required after compensation them.
The period 1990’s witnessed financial referees and the national bank also in
cooperated the change in its working and offered new services and products
to its clients .at present the bank is playing very important role in financing
the trade .commerce ,agricultural and important concerns and contributing
the best to word making the country prosperous. The improve its costumer
focus redacted decision making layers restructured its entire command and
control system in business and operational spheres zones and audit offices
in the year 2002 and eliminated the total numbers of regions in hands from
9 to 29 across the country .anew matrix structure has been introduced with
the objective to separate the office and the bank offices .to improve the
good governance and enhance the internal control.
Operation group
corporate and investment banking group
special assets management group
commercial and retail banking group
audit and inspection group
overseas Coordination and Management Group
8
Risk Management Group
NBP enjoys the highest rating of ‘AAA’ in the industry assigned by M/s
JCR-VIS Credit Rating Company. The ratings assigned to NBP are
primarily driven by the bank’s role in the national economy as an agent of
the State Bank of Pakistan and as a bank to the Government of Pakistan.
Additionally, ratings also derive strength from the bank’s consistently high
capitalization levels, and nationwide access that has enabled it to secure a
cost effective and diversified deposit base.
9
National bank of Pakistan, overseas operation comprises 18
overseas branches, 5 representative offices, one international subsidiary
bank of NBP in Amatory and one joint venture with the United Kingdom.
NBP with its commitment to invest in development of the bank’s I.T
infrastructure have now developed on line branches with modern by highly
professional bankers. NBP has launched an ambitious business
reprocessing programmed to make the bank more attractive with the
eventual aim of privatization. The largest bank in the country with a
customer base 9.00 billion in poised for take off.
10
2.3 ORGANIZATIONAL STRUCTURE OF NBP
President Secretariat
Board of Director
Operations Group
Compliance group
Human resources
Treasurymanagement
managementand Admin Group
group
11
2.3.1 Board of Directors
Source: www.nbp.gov.pk/BOD
12
2.4 SENIOR MANAGEMENT
Nausherwan Adil
SEVP & Group Chief Operations Group/Corporate Communication
Division
Mudassir H. Khan
SEVP & Group Chief, Commercial & Retail Banking Group
Nusrat Vohra
SEVP & Group Chief, Treasury Management Group
Tariq Jamali
SEVP & Group Chief, Logistics Support, Security & Engineering
Group
Asif Hassan
SEVP & Group Chief, Audit & Inspection Group
Wajahat A. Baqai
SEVP & Group Chief, Credit Management Group
Aamir Sattar
13
SEVP & CFO, Financial Control Division
Sultana Naheed
SEVP & Group Chief, Risk Management Group
Mahmood Siddique
EVP, Divisional Head & CIO, IT Division
Shaharyar Qaiserani
EVP & Divisional Head, Agriculture & Business Development
Division
14
Mufti Ehsan Waquar Ahmad
Shariah Advisor
Zubair Ahmed
SEVP & Regional Chief Executive, Middle East, Africa & South
Asia Region
M. Rafiq Bengali
NBP will aspire to the values that make NBP truly the Nation's Bank by:
15
Institutionalizing a merit and performance culture.
Creating a distinctive brand identity by providing the highest standards
of services.
Adopting the best international management practices.
Maximizing stake holder’s value.
16
Care about relationships.
Lead through the strength of our commitment and willingness to
excel.
2.7.3 We have confidence that tomorrow we will be…
17
2.8 INTERNAL STRUCTURE OF BANK BRANCH
CHART
18
2.8.1 LOCATION
2.8.2 OVERVIEW
In NBP Lora branch Abbottabad the employees are very experienced. They
are very loyal and committed to their jobs. They are also very much
cooperative with their colleges if anyone of them face any problem in his
work they never hesitate to help him. Number of Employees currently
working there is 35
19
CHAPTER 3
PRODUCT AND SERVICES
A/C opening.
Issuance of cheque book.
Current a/c
Saving a/c
Cheque cancellation
3.1.1 Account opening
Avoid frauds.
Negligence.
Inquiries about clients.
3.1.2 Procedure of Account Opening
20
customer is personally known to him. Details of account are entered into
computer system. Included non-deduction of zakat and services charges
who’s applicable.
Copy of CNIC.
Copy of driving license in case CNIC is without photograph.
Applicant photograph and CNIC copy attested by gazetted officer in
case of CNIC without photograph.
Copy of service card/evidence of employment in case of salaried
person.
Photograph in case of illiterate person.
Zakat exemption declaration/certificate.
3.1.4 Issuance of Cheque Book
Requisition slips to verify that cheque books have been issued to the
account holder. Cheque book are issued after receipt of acknowledgement
of letter of thanks or with the remarks of managers or operation managers
giving justification for issuance of cheque book before receiving of
acknowledgment of letter of thanks. Cheque book series are recorded in
register. Charges for issuance of cheque books are recorded.
21
3.2 TYPES OF ACCOUNTS
22
3.2.4 Rates on term Deposit
3months 5.30%
6months 5.60%
1year 5.80%
2year 6.10%
3year 6.40%
4year 6.70%
5year 7.10%
Above 5 7.80%
23
Deposits in the NIDA accepted on the conditions that the depositor shall
always maintain minimum balance as prescribed by bank in his account.
2million to 25million=1.50%
24
Premium Amdani products account can be opened by all who are allowed
to open current, PLS saving account. The bank reserves the right of
refusing to accept deposit from any person in premium Amdani account
without assigning any reason. Premium Amdani deposits are accepted by
the bank with minimum sums prescribed by the bank from time to time. In
case of premium Amdani additional amount in the lots of 25000/- will be
accepted. Premium Amdani Certificates will only be issued for period of 5
year. Loan will be given 85% of face value of certificate. Loan will be
sanctioned for one year and lump sum payment will be made.
3.2.10 Rates
1 year 7.50%
2year 8.50%
3year 9.50%
4year 10.50%
5year 11%
Blind person (both literate & illiterate) can open an account to be operated
jointly with a visually literate person on completion of all documents and
formalities as prescribed by the bank. Operations in the joint account will
not be subject to ‘’either or Survival’’. In the event of death of blind
account holder the entire credit balance will be paid to the legal heirs of the
deceased blind account. In the event of death of joint visually account
holder the entire credit balance will be payable to the surviving blind
account holder.
All current accounts, which have not been operated upon for six months or
all saving accounts which have not been operated upon for one year shall
classify as ‘’Dormant account’’. All current account s, which have not been
25
operated upon for two years or all saving accounts, which have not been
operated upon for three year shall classify as ‘’Inoperative account’’.
In case of death of account holder the credit balance in his account will be
payable to his legal heirs. They have to prove themselves through court.
Bank will present the details of his account in court. If any one of them is
minor then he will not be given balance. His account will be opened in the
Bank according to orders of court and Senior Civil Judge will be guardian
of account until he attained the age of majority. After that he can withdraw
money from the account.
26
In the event of death of an account holder, the credit balance, in any
account, in the name of an individual will be payable to the legal heirs of
the deceased individual account holder If the account is in the name of two
or more persons operated jointly the credit balance will be payable to the
legal heirs of the deceased account holders along with the remaining
account holders.
27
Cash finance
Running finance
3.5.2.1 Gold finance
I.D. Card :
Goldsmiths documents.
Gold loan insurance form
Promissory note, IB-12 (Here amount + mark-up).
Undertaking
IB/6A- Agreement for financing for Short/med/long term on mark-
up basis
IB-2 Letter of pledge (Here also A + mark-up).
ii) Cash finance
28
It is a very common form of borrowing by business concern, commercial
concern, and industrial concern. A borrower is granted an advance up to a
certain limit against securities such as pledge of goods and mortgage
securities. Borrower pay markup only on the amount which is actually
utilized. It is granted on long term basis. Cash Finance is not available in
Abbottabad , only in big cities Bank has its own lock on warehouses.
Industries can’t reduce stock without the permission of bank. If he wants to
use the stock, the bank person will visit along with him. When stock
reduces he will pay the loan. Loan is sanction for one year. After one year it
can be renewed. Markup is paid in quarterly.
29
Grade 1 : 2 lacks
Grade 2 : 1 lack 50 thousand
Documents
Application form
I.D Card of borrower and two guarantors.
Three blank but signed cheques
Agreement for financing on mark-up basis, variable rate
Undertaking
Annexure “A” .It is issued by department of borrower which shows
how much service is left and account no etc. His salary will be
transferred to this account.
Annexure “C” Agreement for financing on mark-up basis.
Annexure “D” Letter of hypothecation for stocks, machinery
And receivables.
Guarantee IB 29
30
3.7.2 NIFT (National institutional facilitation technology)
Procedure
The bank uses this book for the purpose of recording all the cheque
that are being received by the bank in the first clearing. All details of the
cheque are recorded in this book.
31
deal NBP transactions of F.C are.NBP New York deals the transactions of
dollar..United National Bank London (UNB) deal Pound.Same procedure
of opening account like in Pakistan Rs.Here minimum balance required is
1000$.If less then monthly $3 as services charges will be deducted.If
account is opened in any other foreign currency then amount will be
converted in $ to deduct charges.
Or minimum US $5.00
Maximum US $25.00
Plus telex/ SWIFT charges Rs.2.50 per telex/ SWIFT case of TT.
Inward TT in FC
If any one sends TT from foreign bank to National Bank in
Pakistan then NBP will be debited and credit account of that person.And
will take credit from H.O by F-16 & will also prepare FET along with that.
Head office will debit that bank and credit NBP.
When any one send TT to Dr foreign currency amount in F.C. account then
bank will Dr, Cr foreign currency amount at updating rates but when
anyone ask to deposit in Pak
32
If checks are of any bank out of country then bank will send these
cheque to standard chartered Bank Karachi for clearance.The account of
Standard Chartered is in H.O Standard Chartered Bank will credit the
required amount of cheques in their account in H.O But until 21 days bank
will not ask for money by FET. Standard chartered will physically present
those cheques in relevant banks out of country.
Revaluation of accounts
Cash department
Cash Receipts
The money, which either comes or goes out from the bank, its
record should be kept. Cash department performs this function. The
deposits of all customers of the bank are controlled by means of ledger
accounts. Every customer has its own ledger account and has separate
ledger cards When the bank receives the cash from the customer, the bank
credits the customer’s account which is then used for paying their bills or
remitting it to their creditors or suppliers as the case may be.
Cash Payments
33
It is a banker’s primary contract to repay money received for this
customer’s account usually by honoring his cheque.
It should be in writing
The unconditional order
Drawn on specific banker only
Payment on Demand
Sum Certain in money
Payable to a specific person
Signed by the drawer
Parties to Cheque
The normal Cheque is one in which there is a drawer, a drawer banker and
a payee, or no payee but bearer.
The Drawer
The Drawer
The Payee
34
3.9 TYPES OF CHEQUE
These types of cheques are also cashable on the counter but its
holder must satisfy the banker that he is the proper man to collect the
payment of the cheque and he has to show his identification. It can also be
collected through clearing.
35
3.10 REMITTANCE DEPARTMENT
Demand Draft
Telegraphic Transfer
Pay Order
Mail Transfer
3.11 DEMAND DRAFT (DD)
36
3.12 TELEGRAPHIC TRANSFER (TT)
Rs.100/-(Flat)
Pay order is made for local transfer of money.Pay order is the most
convenient, simple and secures way of transfer of money It is the property
of bank. It is payable only at the branch from where it is issued.
37
For account holder Rs.50/-
NBP has an agency agreement with some Banks which includes Citibank,
Standard Chartered, Grand lay and Oman exchange etc. These Banks have
their accounts in Head Office Karachi. When instruments of these banks are
presented in NBP Lora branch the Bank make the payment in advance.
NBP purchases the instrument from customer and make payment of
benevolent fund, pension funds etc on behalf of these banks.
In this department the review of all the works in the bank is done. The
responsibility of compliance officer is to check whether works are done
according to procedure recommended or not. His duty is just to point out
the mistakes, if any, and he will not be liable if relevant department has do
not correct the mistakes even after his notification. He reviews different
works at different time periods.
38
Checking balance.
Deduction from balance on clearing cheque.
Issuing bank statements.
Dealing Western Union.
This department mainly deals with the branch employees. The main
objective of this department is to” To regulate bank business”. Main
functions of this department are:
CHAPTER 4
MAKRKETING
39
Marketing Manager
BM BM AM (Car)
PM PM PM Commercial House
Credit card Corporate Commercial
40
Policies are consistent and persistent due to unstable political
Government and military interventions. Every one or second year, new or
amended policies are in place. In such a highly unstable and unpredictable
financial environment, the role and responsibility of marketing team
become very important.
41
42
3.3 STRUCTURE OF THE SALES DEPARTMENT
43
specially focusing on this important opportunity. Following are the
functions of sales department
44
3.5 CUSTOMER SERVICES
Its job is to ensure the provision of bank’s services as per its SOP’s.
Considering the
Welcome to a world of convenience with the NBP ATM 24- Hour Smart
Card. “It Works. Anytime in Pakistan and abroad” With an ever growing
number of ATMs operating across the nation, the NBP ATM Network is
the largest and most advanced of its kind in the country, and is part of
NBP’s continuing efforts to provide you with convenience that suits your
requirements most. And now the NBP ATM has gone at the forefront of
technological excellence, NBP proudly introduces NBP, MOBILE
BANKING. The convenience of accessing your account balance
information and mini statements whenever you want or wherever you may
need them, with comfort and peace of mind.
45
365 days.
Just call our Help Line on 111-000-NBP (622) or any NBP online
branch for assistance
The state of the art NBP call center is the right choice to keep you in step
with your ever hectic schedule by providing you services relating to your
account and Smart card at any point in time.
General Inquires
Financial Services
Non Financial Services
NBP easy bill pay offers unmatched convenience to pay your utility and
mobile phone bills or re-charge your prepaid mobile phone accounts
anywhere, anytime with security and peace of mind. NBP is the only
bank that offers you 3 convenient options of making bill payments to
PTCL, SSGC, SNGPL, KESC, Interphones, Mobilink, Paktel and
U-fone. So, save your precious time by avoiding long queues and pay
your bills through NBP Easy Bill Pay. NBP Smart Card or NBP ATM
Card Holder can easily pay their bills or re-charge their prepaid mobile
phone account through the following convenient
46
Establishing more foreign Branches.
POLITICO-LEGAL FACTORS:
Stable government
UNSTABLE GOVERNMENT:
The situation of law and order is adverse. The policies are not very handy
and beneficial for the country. The Govt. passes such rules which are not in
the favour of bank e.g. The Govt. of Pakistan has passed a rule that if
anyone withdraws more than Rs.25000 then he will be charged 0.30% on
withdrawal.
ECONOMIC FACTORS:
Pakistan's economy is going weaker and weaker. 9/11 has a great influence
on the economic crisis of all over the world. With economic factors the
bank influenced very much that are as under:
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Impact of WTO force to cost reduction methodology.
Inflation
Budget deficit
SOCIAL FACTORS:
If we see the religion point of view then interest is not allowed that's why
most of the people hesitate to invest their savings in banks and yet they are
not aware of ISLAMIC BANKING.
Traditional business men do not like the business with bank. They pay their
creditors through cash not through cheque. They do not want to get the
bank facilities.
TECHNOLOGICAL FACTORS:
Today is the era of technology. In the every aspect of life technology plays
an important role.
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manipulation. One person can easily transfer amount
from any other's account to his account.
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CHAPTER -5
SWOT ANALYSIS
50
7 In order to give loan to the farmers they provide special services
while rendering the loan.
8 NBP open different branches in rural areas in order to facilitate the
farmers.
9 It Provides loan named as NBP (SAIBBAN) for the construction of
houses to the salaried persons.
10 Provide 15 advance salary packages to the needy people.
11 Act as an agent of SBP.
12 Staff College is also the part of the national bank of Pakistan; it
helps the trainee to get some practical knowledge.
13 Not a tough competition, because it is nationalized bank.
14 Highest deposits.
15 Staff gives the importance to internees.
16 The attitude of the staff with internees and customers is very
cooperative.
17 Online banking system.
5.2) WEAKNESSES OF NBP
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10 Lack of scheme and projects to invest the money.
11 Limited staffing and no adequate span of management.
12 Unequal distribution of work.
13 No much use of computer as it is required.
14 No library for internees as well as students to get the relevant
material.
15 Delay in decision making.
18 Employee does not follow the basic rules and regulation of banking.
5.3) OPPORTUNITIES OF NBP
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for NBP.
6 Rapidly growing business of other foreign banks and expansion of
their brands networks in the country.
7 Strike regulation by the government and credit facilities to the
customers as well as to meet the production regulators.
8 Lack of public confidence to open foreign currency account NBP
due to political instability due to tear of economic sanctions on the
country
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CHAPTER 6
CONCLUSION AND RECOMMENDATIONS
6.1 CONCLUSION
I had made an honest effort to present the working & operations of NBP,
specifically to Lora branch Abbottabad in simplest way. Moreover, I feel
pleased that I have really learned a lot during two months & enjoyed
working with experienced cooperative & intelligent staff.
6.2 RECOMMENDATIONS
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provides all the procedures and information to ensure the effective
operations of the commercial banks. The man regulatory body is state
bank of Pakistan, which provide the policy guide lines and ensure that the
money market operate on sound professional bases. While the head offices
specifies the whole procedure of functions and operations.
Professional Training:
The staff members do not have the strong professional background. They
do not have modern techniques and knowledge regarding the bank
procedures.
Although staff training colleges are working in all major cities but they are
not performing well. For this purpose these staff colleges should be
reorganized and their syllabus should be made in such a way to help the
employee understand the ever-changing economic conditions.
Delegation of Authority:
To make the environment of the work place more cohesive proper authority
delegation is required in the bank. Staff members of the bank should be
given a task and authority and he or she should be ask for their
responsibility. In this way no one can put the blame of their mistake on
others.
Performance Appraisal:
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The manager should strictly monitor the performance of every staff
member. All of them should be awarded according to their performance.
Special bounces and incentives should be given to motivate them.
On the job training should be carried out by the management to make their
staff better concerning the global changing economic environment. For
these purpose seminars, conferences and debates should be organized.
Transfer:
Transfer is not properly carried out. Some of the employees are continually
serving at the same post. They are simply rotated at the same branch.
Changes in Policies:
There should not be any abrupt polices by the upper management, as this
practice damage the customer confidence in the bank. Policies should be
made in such a manner that any new government could not alter it.
Qualified Staff:
Availability of computers:
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borrowers in computers which will make their job easier while calculating
different installments. Special computer programs should be designed
according to their needs, ensuring full reliability and security.
The banks are entitled to levy special charges on utility bills (electrically,
gas, telephones etc.) from consumer. It was fixed by the government. These
charges are so less that they are unable to meet the cost of the bank. These
charges should be increased to Rs.10 per bill to enable the branch to cover
there handling costs and earn some profit.
100 major branches of NBP should establish a direct link with the head
quarter in Karachi, through internet. This will make the functions and
decision making of the management easier and convenient.
Credit Cards:
National bank of Pakistan should start its operations in credit cards. These
cards are very helpful for the ordinary customer in general and the business
in particular.
To make it more secure and to eliminate the misuse of it, the management
is required to keep proper security against the card.
Interest On Overdraft:
Clean Loan:
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Clean loan or clean overdraft is the credit facility extended to the customers
without any security. These types of small term loans should not be extend
to any body, because some times these loans are provided to blue-eyed
people of the management and they become a part of bad debts.
Cash Financing:
In this mode of financing the amount of credit not utilized by the borrower
is remain ed tax free. It is recommended that a small amount of interest
should be charged on this mode of financing. Because the bank does not
utilize this amount anywhere.
Staff Relationship:
Good relationship among the staff members leads to the better performance
in any organization. It is observed that the staff relationship was normal but
some time it is noted that their existed a little conflicts among the staff
members. So this sort of attitude is not good because it weak the spirit of
team work.
In the Main branch during the internship, it is observed that there is lot of
nepotism and favoritism.
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When some of the employees are transfer to other places, due to there
relations with top management they can cancel their transfer in few weeks.
The NBP should adopt various prizing scheme just like allied bank (kar –
amed scheme) bank Alfalah (monthly income earning scheme) and various
others. Media and newspapers can be helpful in this regard.
Facilities In branch:
There is no proper facility for the customers in the bank when they enter
the bank. The proper furniture is not available for the customers. In the time
of rush the people move here and there in the bank which really create the
disturbance.
So in order to main tain the good working environment the customer should
be served properly so that they can feel that they have taken the right
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decision to choose this bank for the safety of their money. If the bank takes
steps in this direction then, it will increase the goodwill of the bank.
Complaint Of Customer:
There is no complaint box available in the branch and not any person
appointed to hear the complaints.
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REFERENCES
1. Gibson, Charles H, (2002); Financial Reporting & Analysis, 7th Edition.
Prentice Hall International Corporation”.
2. Lawrence J.Gitman, (2008); Principles of managerial Finance. 11th Edition,
San Diego State University”.
3. Siddiqi, Asrar H (2008); Practices and law Banking in Pakistan, (8th Ed),
Royal Book Company, Karachi.
4. NBP Annual report (2017), (2016 –National Bank of Pakistan
5. National bank of Pakistan 2016, executive committee, viewed 05 March,
2017, <http:// www.nbp.com.pk>
6. National bank of Pakistan 2016, publications, annual reports, accessed on
09 March 2017<http:// www.nbp.com.pk/Publications/index.aspx>
7. Business recorder 2016, highest rating, viewed 05 may,2017,
<http://www.brecorder.com/top-stories/0/1175012/>
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