INTERNSHIP REPORT NATIONAL BANK LTD.

SPECIALIZATION: BANKING & FINANCE

Submitted to: Submitted by:

Chairman, Dept. of Business Administration

Name: Roll No: Registration No: Mailing Address:

Umer Riaz W586980 07-PGA-0276 St# 25, house# 8, Mini market, X block, Peoples Colony, Gujranwala

Contact No: Date of Submission:

0300-6429017 27 September, 2010

DEPARTMENT OF BUINESS ADMINISTYRATION ALLAMA IQBALOPEN UNIVERSITY, ISLAMABAD

ACKNOWLDGEMENT
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Every praise is due to Allah alone the merciful and teachings of His Prophet (Peace and blessings be upon him) who, for ever, a torch of guidance and knowledge of humanity as whole. I would like to thank, Almighty Allah whose blessings are always with me. To my teachers at all my stages of study who always guided me in right direction and developed my personality as a useful citizen for the society. To all my friends from whom I learned much. To the staff of the National Bank Ltd. who fully cooperated with me in the completion of my INTERNSHIP.

Executive Summary
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National bank of Pakistan (NBP) was developed in 1949. It served as the central regulatory bank of Pakistan till the time State Bank of Pakistan was established in 1949. National bank of Pakistan is the complete government bank and it undertook government treasury operations. The two major competitors of national bank of Pakistan are united bank limited (UBL) and Habib bank of Pakistan. The first branch was open in I.I Chandigarh road Karachi. And after, they make it the head office of the bank. The bank's history is divided into many phases. During 25 years of united Pakistan the bank advanced forward in all areas of its activities. 1970s were a difficult decade for all Banks of Pakistan. In 1971 East Pakistan was separated and Australasia Bank lost its 50 branches and a lot of capital as well. Nevertheless the growth remained steady. The National Bank Ltd. is playing a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the National Bank Ltd. has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. This report covers the experience, which I have gained during my stay at the National Bank Ltd., Satellite town, Gujranwala, working as an internee.

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TNBPE OF CONTENTS A. OBJECTIVES OF STUDYING 1. OVERVIEW OF THE ORGANIZATION

1.1 History 1.2 Nature of the Organization 1.3 NBP Business Volume 1.4 NO. of Employees 1.5 Product Lines 2. ORGANIZATIONAL STRUCTURE OF NBP 2.1 Overall Organizational Structure 2.2 Structure of Branch 2.3 Review of the Various Departments I. Deposit Department II. Foreign Exchange Department III. Clearing Department IV. Remittances Department V. Token Department VI. Cash Department VII. Account Department

3. STRUCTURE

AND

FUNCTION

OF

Page # 1 2 2 3-5 6-9 10 11-14 15 15-18 19 20-21 22-23 24-25 26-27 28--29 30 31-33 34 THE 35 35 36 37-38 39-40 41 42-43 44 45

ACCOUNTS DEPARTMENT
3.1 Structure of Finance Department 3.2 Finance & Accounting Operations 3.3 Role of Financial Manger 3.4 Use of Electronic Data in Decision Making 3.5 Sources of Funds 3.6 Generation of Funds 3.7 Allocation of Funds

4. CRITICAL CONCEPTS

ANALYSIS

OF

THE

THEORATICAL 46 46-49 50-51 52-70 71-72 73-76 77-83 84-87

5. FINANCIAL ANALYSIS 5.1 Balance Sheet of Latest Five Years 5.2 Income Statement of Latest Five Years 5.3 Ratio Analysis of Last Five Years 5.4 Horizontal Analysis of Balance Sheet for of Last Five Years 5.5 Horizontal Analysis of Income Statement for Last Five Years 5.6 Vertical Analysis of Balance Sheet for Last Five Years 5.7 Vertical Analysis of Income Statement for Last Five Years

5.8 Organizational Analysis with reference to the Industries 88 Listed on the Stock Exchange 5.9 Future Prospects of the Organization 89 90-93 iv

6 WEAKNESSES OF THE ORGANIZATION