National Bank of Pakistan

BC080401631, Gohar Sulaiman

Spring 2013
Virtual
University of Pakistan

Letter of Undertaking

• Scanned Copy of Internship Certificate

 • Dedication
I have dedicated my work to my parents and especially to my dear mother, who made me able to be the
person I am. Without her constant efforts and kind prayers I would have been nothing. May Allah grant
her a prosperous, healthy and happy long life.

• Acknowledgements
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. Waqas Ahmad and Mr. Waqar Anwar whose constant help made
me able to write this report with the technical guidance. I’d also thank the staff of the Lakki Marwat
Branch who helped me in each department, while I was working. They helped me in all aspects of work.
 • Executive Summary
This document is the internship report that states my experience and observation in the NBP , Lakki
Marwat branch. I have formally introduced the bank, stated its vision, mission and goals and have
highlighted the offered products and its main competitors. Afterwards, I discussed the organizational
structure by discussing the organizational hierarchy.

Next, I introduced the branch I was working in, I explained the workforce distribution in the bank, Next I
stated my duration of internship in the bank and the departments that I served. Afterwards, I went
through the training phase in which I was taught about the fundamental processes involved in the
working of the bank such as account opening, dispatching etc.

Next, I explained how banks are managed and planned in order to keep the flow of bank normal. I also
discussed the organization procedures that are followed by employees such as managers, IT experts and
then I explained the role of leaders and their role in controlling the bank.

After that, I have performed the critical analysis of the bank in which I stated how poor the filing system
and jobs management system was. I also stated how the employee-customer relation can be improved
and the technology in use can be improved. Moreover, the low profit and its affects are also discussed.
Moreover, the issues regarding customer-privacy

Finally I stated the aspects of the bank where it shines, the places where it is in the shadows, the
potential opportunities that can enhance the bank’s working and finally the threats that endanger the
bank. And then I concluded the report with my comments.

• Table of Contents

• Overview of the Organization

• Introduction
 The National Bank of Pakistan (NBP) is among the largest commercial banks operating in
Pakistan. It redefined its role and by moving from a public sector organization into a
modern commercial bank. NBP was established in 1949 and since then, its network has
expanded making it the largest commercial Bank of the country. NBP headquarter is in
Karachi, Pakistan with over 1,250 branches country wide. The bank provides both
commercial and public sector banking services.

The Bank's services are available to individuals, the corporate entities and Government.
While NBP continues to act as trustee of the public funds and as an agent to the State
Bank of Pakistan (in places where SBP does not have a presence) it has diversified its
business 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.

Today, NBP is a progressive, efficient, and customer focused institution. The bank has
developed a wide range of consumer products in order to enhance its business
capabilities and cater to the different segments of the modern society. Some schemes
have been specifically designed for the low to middle income sectors of the population.
For NBP’s clear introduction I will explain its History and also its Mission, Vision, Values
and Goals.

• 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:

• Institutionalizing a merit & performance culture.

• Creating a distinctive brand identity by providing the highest standard of services.

• Adopting the best international management standard.

• Maximizing stakeholder’s value.

• Discharging our responsibility as good corporate citizen of Pakistan & in country

where we operate.

• Core Values
• Highest standard of integrity.

• Institutionalization of team work & performance culture.

• Excellence in service.
 • Advancement of skills for tomorrow’s challenges.

• Awareness of social & community responsibilities.

• Value creation for all stakeholders.

• Goal
To enhance the profitability and maximization of NBP’s share through the increasing
leverage of existing customer base and diversified range of products.

• The Product Outlines

National Bank of Pakistan has launched many programs to suit the needs of people of
different sectors. These programs include.

• NBP Advance Salary.

• NBP Saiban.

• NBP Kisan Dost.

• NBP Cash in Gold.

• List of Competitors
Following Banks can be termed as the competitors of the National Bank of Pakistan.

• Bank Alfalah

• Muslim Commercial Bank

• Habib Bank

• Meezan Bank

• Allied Bank

• United Bank

• First Women Bank

• Bank of Punjab etc

• Organizational Structure
• Organizational Hierarchy Chart
The Organizational Chart and Sub-charts are very descriptive. The defined hierarchy suits the needs of
the Bank and is able to manage the affairs smoothly. Unlike other Banks, the hierarchy is less complex
and is easy to follow and understand, the organization has a flexible structure.

• Internship Activity Plan

• Internship Branch Introduction

 I started my internship at the Main Lakki Marwat Branch (whose code is (0426)) from
April 15th, 2013 to June 14th, 2013. It’s the main Branch of National Bank of Pakistan
that is situated in Lakki Marwat.

• Number of Employees Working in the Branch

The following are the names of employees that are designated at various places in the
bank.
Name Designation
Mr. Raza Ullah Khan Manager
Mr. Shoaib Operation Manager
Mr. Mushtaq Khan Officer
Mr. Naimat Ullah Officer
Mr. Haji Umar Gul Govt. Section Officer
Mr. Farouq Khan Officer
Mr. Hameed Ullah Head Cashier
Mr. Yousaf Khan Cashier
Mr. Manzoor Cashier
Mr. Gul Muhammad Chowkidar

• Starting and Ending Date of Internship

From: April 15th, 2013
To: June 14th, 2013.

• Names of Department where I worked

I have worked in the following departments during my internship at National Bank of
Pakistan.

• Establishment

• Account Opening

• Remittance and Bill Section

• Clearing Section

• Dispatching

• Foreign Exchange and Advance Loans

• Government Department (Pension)

• Training Program
While I was doing my internship at NBP I noticed that the theoretical concepts that I have
studied at VU were implemented in almost the whole Branch. The theory and the examples that
I studied in financial accounting about Bank Reconciliation, ledgers, balance sheets were actively
and strictly followed. The defined hierarchy of the organization was strictly followed. POLCA
function was at its best, the manager of the Bank plans, controls and defines the work flow and
ensures that the staff is doing its best. I noticed that our Manager was following Theory X as he
was keenly observing each and every staff activity and was also angry sometimes. The activities
mentioned above gave me experience and learning opportunities. Manager was working as a
true leader and was guiding the team very positively, sometimes as he was a short tempered
person and followed all the rules and regulations so I can say that he was a very strict Manager.

• Account Opening
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 Mr. Mushtaq 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: 

• Applicant must be introduced or referenced by another existing

customer of the Bank. 

• Signatures of the account holder are taken on the account opening

forms and are verified by the Bank Officer. 

• Bank requires copy of the NIC’s as well. 

• Bank keeps the right to reject the application of the customer without
any reason.
 • A unique account number is allotted to the applicant.

• 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

• Account Title

• Applicant’s Full Name

• Customer’s Occupation

• Customer’s Address

• Customer’s Telephone Number

• Account’s Currency

• Business Nature

• Name, Address and Number of the Referencing customer

• Accounts= related special instructions

• Amount to be deposited initially in the account

• Applicant’s Signature

• Remittance and Bill Section

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 Remmitence 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 Section
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: 

• Crossing Stamp 

• 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 cheuque
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.

• Dispatching

Dispatching Definition:
Dispatching is physical function, in which we handover the daily transactions to
the operating facility through the release of transactions and instruction with
previously developed plan of activities that are established by the scheduling
section of the department.

Dispatcher:
Dispatcher is a person that will perform the dispatching. Dispatch
function determines, by whom the job shall be done. A dispatcher is familiar
with, how to maintain official documents, how to explore daily transactions.

There are two type of dispatch function.

Centralized Dispatch system :

In this type of dispatch system, the dispatch department sends transaction
directly to the other branches. It maintains full record of each transaction of
 each function. It has following advantages.

A greater degree of overall control can be achieved. Effective co-ordination

between different facilities is possible.

It has greater flexibility

Because of urgency of orders, changes in schedules can be affected rapidly

without upsetting the whole system.

Progress of orders can be readily assessed at any time because all the
information is available at a central place.

There is effective and better utilization of manpower and machinery.

My Role as Dispatcher
My Role as dispatcher was:

• As communication dispatcher.

• As computer aided dispatcher.

• Performs duty as shift supervisor/lead dispatcher.

• Doing duties of dispatcher for maintaining daily transaction.

• Establishment:
Establishment is a procedure in which department may find any lackness in the
organization with respect to buildings, enhancement etc.

My role in Establishment department:

• Assistance to the manager that makes top level decision.

• Doing work with manager in the field.

• Work in the documentation of making new branch of NBP in the Lakki

marwat.

• Foreign Exchange and Advance Loans

In modern banking system Foreign Exchange department plays very important
role from every aspect. It is parallel to the general banking with additional
functions of imports and exports business. Foreign exchange is controlled by
State Bank of Pakistan. Rules and regulations are framed by SBP.

In Advanced Loans section I used to check for those customers who have not yet
paid loans and markup amount to the Bank. Every such customer was tracked
and called for. If the payment is made then everything is smooth, but if the
customer doesn’t pay the amount, the bank runs a case against them. I worked
on providing loans to different customers under different schemes; mainly the
 Rozgar Scheme was targeted. I used to make the Loan Reports which contained
all the customer data and the figure of their loans to the head office on monthly
basis.

NBP also carries the international banking through its Foreign ExchangeDepartm
ent. All the transactions are carried out at the rate which is authorized by the
State Bank of Pakistan (SBP). For this purpose US dollar has been fixed by SBP
and the rate of other currencies are calculated in accordance with the formula
approved by SBP and as published daily by Foreign Exchange Rate Committee in
Karachi. NBP Head Office ensures that the branches receive the rates published
by Foreign exchange rate Committee on the same day. The Foreign Exchange
Department provides the following services;

• Foreign Currency Accounts.

• Foreign Exchange Remittance Facility.

• Import Advances to Importer.

• Export Advances to Exporters.

• Government Department (Pension)

I have spent a week of my internship in the government pension section. Here
two types of pensions are given to the pensioners. 

• Pension to the retired Government servants. 

• Employee old age benefit pension. 

The pension is paid to the pensioners on every date of the month. Every
pensioner have his own copy of pension in which all the details of the pension
are listed including the date of receipt, the amount of money and also any
increase if sanctioned by the govt.

I used to fill the Pensioner’s Pension book, check the previous Pension records
to see when was the last pension taken, as the Government of Pakistan is
always making changes in the Percentages of the Pensioner’s Pension, I used
to calculate the variance in their pension’s and updated pension book of the
pension holder. Here I used to make sure that the Pension holder himself is
receiving the Pension to ensure transparency. I used to sign their pension form
with the tickets on it and approve for cash receipt. First week of the month is
always busy and the bank used to be full of pensioners, there were no special
arrangements for the Old people and ladies, people used to come from far
areas to receive their pensions and the Bank did not even have enough
benches to entertain them.

The recent increase in the pension of the retired govt. employees is listed
below. 
 • Pensioner retired before 31-11-2000 20% increase 

• Pensioner retired after 31-11-2000 15% increase 

Medical allowance is also granted to the pensioner on the following ratio. 

• Pensioners retired in grade below 15 25% increase 

• Pensioner retired in grade above 15 20% increase 

The increase in the family pension

• The family pension below 2300 is increased to 3000 + the medical

allowance on the ratio listed. 

• Analysis of Management Functions of the Organization

• Planning
Planning determines the organizational goals and the means of achieving them.

• Organizations planning strategies

The main objective and goal of a commercial bank is to earn profit. National
Bank of Pakistan’s current strategy is to value the customers, and provide
services which people can trust. NBP has a big advantage of distributing
Government Salaries and Pensions.

• Decision Making Process

National Bank of Pakistan has the following Decision Making Process.

At Head Office Level

The President of the Bank is the CEO of the Organization. He is the Chairman of
the Board of Directors. The Board is responsible for Policymaking and
implementation of all the major decisions.

The board of Directors also give due weightage to the proposals submitted to
them by the field functionaries by time to time while making policies for bank’s
interest. We can say that there is democratic atmosphere and environment for
decision-making Process.

At Regional Office Level

The Regional Business Chief preside the Regional Management Team (RMT). All
decisions are made by the RMT Collectively. All of the five department’s
Regional Chiefs are the members of this team.

At Branch Level
 The branch manager makes decision in association with branch operations
manager and other staff members.

• Organizing
• Organizational Design
Organizational Design is the process of developing or changing an organization’s
structure. This involves the decisions of about six key elements, which are: Work
Specialization, Departmentalization, Chain of Command, Span of Control,
Centralization/Decentralization, and formalization.

Departmentalization
Departmentalization at NBP is pretty elaborative and neat. The following chart
can extensively define the hierarchy of the departments currently working in
NBP

Span of control
Span of control is the number of subordinates who report directly to a specific
manager in the bank.

There are three types of branch categories i.e. I, II, & III.

Category I Branches: Four employees report to their branch manager.

Category II Branches: Eleven employees report to their branch manager.

Category III Branches: Fifteen employees report to their branch manager.

Chain of command (Organizational Hierarchy chart)

Centralization/Decentralization
NBP is a centralized organization.

Formalization
One of the newer concepts in the organizational design is the team based
structure which is made up of work-groups or teams that performs the
organization’s work. NBP has high departmentalization and more formalization.

Work specialization
 Work specialization is the degree to which the work necessary to achieve
organizational goals is fragmented into various jobs. These jobs are performed
parallel to each other and their combined result is counted as the organizational
goal. Another term for this is division of labor. NBP is emphasizing on work
specialization and job specification.

• Managing change and innovation

The change management in an organization is a managerially difficult process. It
is because strategists normally consider a single variable instead of the holistic
view of the organization.

In today’s world perhaps the most frequent and common trigger for
organizational transformation is the technology and its continuous
advancement. This transformation occurs on account of revolutionizing the
production process, informational and communication technologies or other
processes such as demand management and, order fulfillment. It is the
technological innovation perceptibly that leads to the increased efficiency in
value chain activities, especially in primary and support activities of the value
chain. NBP is focused towards managing change environment and its
innovations.

• Managing IT and Communication

Today banking is becoming more and more mechanized and it is the I.T. support
that can improve the customer service and reduce the cost involved at the same
time. At NBP we have elaborated plans for transformation of the entire I.T.
architecture of the bank by implementing core-banking solutions. The said
technology will not only increase our distribution by many folds but it will also
simplify our internal procedures thereby reducing the transactional cost and
lead-time for service.

But NBP still lacks in IT field from different other Banks. NBP needs to come with
new trends of Online Banking and Accounting.

• Leading

• Leadership Style
NBP is adopting democratic style of leadership in which employees’ involve in
decision-making process. The bank uses the user feedback to coach employees
for decision-making process. Democratic leadership style could contribute to
both the quantity as well as high quality of work.
 • Power and Politics
The politics involved in any organization has a very significant role in shaping its
future. The politics is the role-playing with the sense of responsibility. The
leadership skills of the person in charge significantly shape the future of the
bank. If the leader is not proving himself to be a good leader, then the people
working under him can use democratic power to change him.

• Motivation
The leader plays a very important role of uplifting the employees in any
hardship. The job in the bank is very time consuming and requires motivation
and support from the leadership. The leader acts as a guide for the employees
and his technical superiority is very important for the employees.

• Controlling
• Controlling of operations
The bank is committed and focused towards good quality customer service and
in 2007 with the motto of ‘Putting as smile on our Customers face’, it made
concerted efforts and took a number of initiatives in order to improve the user
experience and bank’s operation capabilities. Workshops and seminars were
conducted in order to disseminate the very important message of “excellent
customer service”. It is transforming the bank’s branches to give a modern look
and convenience to. A number of branches have been shifted to prominent and
spacious locations. It also has established specialized customer facilitation
centers to exclusively cater to pension payments, utility and government
collections. These are expected to reduce counter traffic at our branches and will
increase our distribution channels for better and convenient services. Business
hours have been extended with the establishment of customer facilitation offices
at the regional levels in order to help on the spot resolution of customer
complaints.

• Controlling of performance
• Internal control is the fundamental control of any bank branch. The
adequacy of internal controls determines largely the risk profile of the
respective branch. Almost all the potential frauds can be analyzed all
the way to the stem from faulty internal controls or their absence.

• Since internal controls have evolved over the years, NBP has accepted
them without question-until now. Technology of computerization,
which has changed the very face of Banking, has compromised many of
the internal controls not only because of other reasons such as
execution of a transaction in a different procedure.

• Monitoring progress towards goal achievement and taking corrective

action when needed. NBP is emphasizing on controlling to integration
of the activities, plans, attitudes, policies and efforts of the people of
 the Bank working together to provide reasonable assurance that the
organization will achieve its objectives and mission.

• Critical Analysis

• Organizing
• Poor Filing System Record
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.

• Human Resource Management

• Job Analysis
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.

• Employee Appreciation
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.

• Marketing Management and Customer Relation

Management
• Customer Dealing & Satisfaction
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.

• Lack of Secrecy of Customer

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.
 • Lack of Business Communication
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.

• Information Technology
• Lack of Computer Technology
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.

• Banking and Finance

• Low Profit
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.

• Efficient Banking
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.

• Controlling
• Manager Authority
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.

• Planning
• Incompetent 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.

• Lack of Planning Abilities

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.

• 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

Keeping the fact in mind that I worked in the Main Lakki Marwat Branch, I
observed that very little attention was given to our bank, 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 very 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 loosing 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.

• 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.

• 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.

• References