INTERNSHIP REPORT

ON
National bank limited

SUBMITTED TO ABDUL WALI KHAN UNIVERSITY MARDAN IN THE PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

PROGRAM NAME

SUBMITTED BY

NAME OF STUDENT

AT

ABDULWALI KHAN UNIVERSITY

MARDAN

SESSION 2013-2017
 APPROVAL SHEET
An internship report submitted to Abdul Wali Khan University Mardan in partial fulfillment
of the requirements for the degree of

PROGRAM NAME
SESSION: (2013-2017)

Approved By:
Name & Sign: …………………………… Internship Supervisor

Name & Sign: ………………………….. Internship Coordinator

Name & Sign: ………………………… Program Coordinator

Name & Sign: ………………………... External Examiner

SUBMITTED BY

KIRAN WALI

AT

ABDULWALI KHAN UNIVERSITY

MARDAN

SESSION 2013-2017
 DEDICATION

To My Parents
 ACKNOWLEDGMENTS
There are many people who deserve recognition for their support in doing my internship.

First of all I thank to my supervisor Name of Supervisor who provided a very kind support and

encouragement in completing my internship. I must say that his wealth of knowledge, experience

and kindness proved a great help for me in doing my internship. Without his encouragement and

support it would be impossible for me to complete this task. His valuable support and help in this

internship is undeniable. I appreciate his knowledge and support that you provided me at every

single step of my internship. I am also thankful to my other teachers who always guided me in

right direction and helped me whenever needed.

I am also profoundly thankful to my friends whose support always been great source of

motivation for me. In addition, I also thank and appreciate my class mates who were always

supportive to me. I must not forget to thank my best friend whose love and trust always raises

my morale. Thanks for being in my life.

I am very thankful to the respondents for providing me the data whenever I needed

during my internship. Without their support I would be impossible to complete my internship.

Student name
CONTENTS
CHAPTER-1......................................................................................................................1
INTRODUCTION TO THE ORGANIZATION............................................................1
1.1 IMPORTANCE OF BANKING.................................................................................1
1.2 MAJOR FUNCTIONS OF BANK.............................................................................1
I) PRIMARY FUNCTION:..................................................................................................2
II) Secondary Functions.....................................................................................................3
1.3 MODES OF SHORT TERM FINANCIAL ASSISTANCE....................................3
a) Cash Credit....................................................................................................................3
b) Overdraft.......................................................................................................................4
c) Discounting of Bills.......................................................................................................4
1.4 ORGANIZATION STRUCTURE.............................................................................4
1.5 MAIN DIVISION OF NATIONAL BANK OF PAKISTAN...................................5
CHAPTER -2.....................................................................................................................6
NATIONAL BANK OF PAKISTAN FUNCTIONS AND ACTIVITIES....................6
2.1 DEPARTMENT AND TEIR FUNCTIONS..............................................................6
2.2 CASH DEPARTMENT...............................................................................................6
a) Receipts.........................................................................................................................6
b) Payments.......................................................................................................................6
2.3 ACCOUNT OPENING DEPARTMENT..................................................................7
2.3.1 FORMAL APPLICATION................................................................................................7
2.3.2 SPECIMEN SIGNATUE....................................................................................................7
2.3.3 MINIMUM INITIAL DEPOSIT........................................................................................7
2.3.4 OPERATING THE ACCOUNT.........................................................................................8
2.3.5 CHEQUE BOOK................................................................................................................8
2.3.6 CUSTOMER QUALIFICATION......................................................................................8
2.3.7 ACCOUNTS TYPES..........................................................................................................8
2.4 CLEAREANCE DEPARMENT.................................................................................9
INWARD CLEARING......................................................................................................9
OUTWARD CLEARING.................................................................................................9
2.5 ADVANCES DEPARTMENET.................................................................................9
2.6 REMITTANCE DEPARTMENT............................................................................10
a) DEMAND DRAFT.....................................................................................................10
b) PAY ORDER..............................................................................................................10
 c) TELEGRAPHIC TRANSFER....................................................................................11
CHAPTER-3....................................................................................................................12
NATIONAL BANK OF PAKISTAN PRODUCTS AND SERVICES.......................12
3.1Online Banking...........................................................................................................12
3.2 NATIONAL BANK OF PAKISTAN CASH MANAGEMENT............................12
3.3 NATIONAL BANK OF PAKISTAN HOME REMITTANCE.............................12
3.4 NATIONAL BANK OF PAKISTAN PROJECT AND STRUCTURED FINANCE
...........................................................................................................................................13
3.5 NATIONAL BANK OF PAKISTAN EQUITY CAPITAL...................................13
3.6 NATIONAL BANK OF PAKISTAN ADVISORY SERVICES............................13
3.7 NATIONAL BANK OF PAKISTAN ISLAMIC BANKING................................13
3.8 NATIONAL BANK OF PAKISTAN AGRICULTURE SERVICES...................13
3.9 NATIONAL BANK OF PAKISTAN ACCOUNTS................................................14
3.10 NATIONAL BANK OF PAKISTAN VISA CREDIT CARD.............................14
3.11 NATIONAL BANK OF PAKISTAN CAR FINANCE........................................14
3.12 NATIONAL BANK OF PAKISTAN SMART CARD.........................................14
3.13 NATIONAL BANK OF PAKISTAN RUPEES TRAVELERS CHEQUE (RTC)15
3.14 NATIONAL BANK OF PAKISTAN ATMs.........................................................15
3.15 NATIONAL BANK OF PAKISTAN LOCKERS................................................15
3.16 NATIONAL BANK OF PAKISTAN BANK INSURANCE................................15
3.17 NATIONAL BANK OF PAKISTAN CALL CENTRE.......................................15
3.18 NATIONAL BANK OF PAKISTAN MOBILE....................................................16
3.19 NATIONAL BANK OF PAKISTAN VIRTUAL BANKING.............................16
CHAPTER-4....................................................................................................................17
SWOT ANALYSIS..........................................................................................................17
4.1 STRENGHT...............................................................................................................17
4.2 WEAKNESSES..........................................................................................................18
4.3 OPPORTUNITIES....................................................................................................18
4.4 THREATS..................................................................................................................19
CHAPTER-5....................................................................................................................20
RECOMMENDATIONS AND CONCLUSION...........................................................20
5.1 CASH COUNTER EXPANSION.............................................................................20
5.2 CUSTOME BIASEDNESS IN DEALING..............................................................20
5.3 MARKETING PLAN................................................................................................20
5.4 EMPLOYEE DISCRIMINATION..........................................................................21
5.5 CONCLUSION..........................................................................................................21
 ABSTRACT
This report features the activities and highlights of bank. Banks goes about as fiscal retailers to
their customer; consequently they get acclaim for their contributions. Banks play crucial capacity
in progress of society. A solid financial framework must have an extraordinary financial gadget.
Nation wide bank of pakistan is one of the main banks in pakistan. In accordance with overall
prerequisites of banking device, it's far single of the top notch banks in Asia area just as the
bank, which is, originate the zenith ten inside the world. This record clarifies how extraordinary
capacities of nbp functions and what are their contributions. The report depends especially upon
optional records with utilizing number one measurements on occasion while the previous may be
questionable or hard to get it. The initial a piece of the record is set the development of banks,
wherein as the another one component is prepared the capacities and contributions of nbp and in
0.33 part the swot examination and rules are given. Over the span of the basic assessment, it was
discovered that nbp is one of the fundamental business banks of pakistan with a network of cycle
1189 subdivisions all through pakistan. Nbp gives a wide style of stock and obligations that
sound the way of life and wants of the majority .in reality modern banking is appeared as a
"traditionalist" undertaking on the grounds that the prizes are unassuming and the outcomes of
awful banking are many. As a trustee of the overall population spending plan, nbp has a more
prominent commitment for security and judiciousness. Numerous endeavor can appreciate a
couple of slack of their issues, mechanical banks can not figure out how to pay for this, taking
into account that business banks should make a dwelling through putting the money available to
them to work, they are defied with the inconvenience of making a existing deprived of
imperilling the assurance of their gathering and nbp is doing this all around viably. The nbp is
comprehended for its buyer benefits just as for its stock, which can be sought after
CHAPTER-1

INTRODUCTION TO THE ORGANIZATION

1.1 IMPORTANCE OF BANKING

Bank are of immense importance to the economy of a country. Countries’

economies health depends greatly on the banking structure a country has. The
borrowing and lending and other related activities facilitate the process of
production, distribution, exchange and consumption of wealth.
In this way, they are helpful in boosting economic life of a country. Today, in this
competitive business environment banking sector has been playing a very important
role in transferring the funds among surplus and deficit account, which has
encouraged savings and investments. Had there been no banking structure, the
counties would have felt severe difficulty to managing monetary functions.
The importance of a bank in an economy is same like the importance of heart in a
human or animal body. The humans remain active as long as the blood is pumped to
the organs by the heart, whereas the business sectors like agriculture, fabric, wood,
plastic and others sectors remains active as long as their respective operations are
backed by bank. The loan facility provided by bank serves as backbone for some
business to run their business operations.

1.2 MAJOR FUNCTIONS OF BANK

Commercial banks functions are separated under two categories.
i) Primary Functions
ii) Secondary function.
I) PRIMARY FUNCTION:

The primary functions of a bank include

a) Accepting deposits, and

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 b) Granting loans and advances
A) Accepting Deposits

Deposits carry more importance to a bank and falls in the top priority list of the
bank. People carrying surplus funds and extra income often are motivated to
deposit it with bank for varying purpose which includes security reason,
investment motivated deposits. The banks offer interest rate on deposits by
customers which is of prime interest to customers to earn income on their
deposits. The income provided by the bank on deposits may be monthly,
quarterly and annually subject to certain terms and conditions.
B) Grant of loans and Advances

Loans and advances extends by banks to public at time of need carry more
importance from customers point of view. The banks extends loans and
advances particularly to the business enterprises to cover their cash deficit in
business operations, investment purpose, installation of new plants etc.
A) Loans

The loans granted by banks to customers may be short term loans,

medium term loans, and long term loans. These loans are granted after a
careful financial analysis of customers and their ability to repay the
loans.
The loans granted carry interest rate that varies according to the period
of time to repay the loan. The loan may be repaid in lump sum or in
installments.
B) Advances

Advances are credit facility provided by banks to customers for a

shorter period of time to meet their day to day business requirements.
The interest charged on advances vary from bank to bank. While the
interest is charged on the amount withdrawn. The Advances differs from
loans in terms of period of time.

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 II) Secondary Functions

Apart from primary functions banks perform number of functions named as

secondary functions. These are
a) Letter of credit (LC), Rupees traveler cheque (RTC) circular notes etc.
b) Providing foreign exchange facility.
c) Providing information to customers concerning their deposits terms and
conditions.
d) Transfer of funds form bank to bank.
e) Acting as an executor, administrator, or trustee of the estate of the
customer.
f) Paying customer insurance, rent, loans and installments etc.

1.3 MODES OF SHORT TERM FINANCIAL ASSISTANCE

The commercial banks extends short term financial assistance to well reputed
customers by mean of cash credit, overdraft, and bill discounting.

a) Cash Credit
The cash credit is available to customers who are in need of cash in case of
emergency or facing cash deficit problem. The cash credit is basically a contract
of a bank with customers to draw cash up to certain limit allowed by the bank.
The bank charges interest on the amount withdrawn.

b) Overdraft
The overdraft provide same function to the customers. An overdraft is an
agreement between a bank and a customer to withdraw more money than the
amount of credit balance in customer account. In case of overdraft, the customer
account gets negative and become liability to a bank. The bank allows the
overdraft facility normally to regular and well reputed customers against
security.

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 c) Discounting of Bills

Another short term finance service provide by banks are discounting of bills. The
bills with due date for payment are presented to banks, the banks pays the money
to the bill holder after deducting certain amount of discount. In this case the
party acquire funds without waiting for the maturity date. However, If incase the
bill on maturity date is dishonored, then the bank carry the legal right to recover
the money from the customer.

1.4 ORGANIZATION STRUCTURE

The organization structure provide a sudden insight into an organization and helps in
understanding an organization activities, its division into respective departments.
The national bank organization is divided into units to serve the customers
efficiently.

Branch
Manager

Operation
Manager

Customer General
Tellers Cashiers
Support Service Banking officer

1.5 MAIN DIVISION OF NATIONAL BANK OF PAKISTAN

Following are the main division of national bank of Pakistan.

i) Agriculture Division

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 ii) General Service Division.
iii) Special Asset Management Group (SAMG).
iv) Business Development and Marketing Division.
v) Human Resource Development Division.
vi) RTC and Master Card Division.
vii) Central Account Division.
viii) Corporate Affairs Division.
ix) Inspection and Audit Division.
x) Finance and Treasury Division.
xi) International Division.
xii) Foreign Trade and Exchange Division.
xiii) Operation Division.

CHAPTER -2

NATIONAL BANK OF PAKISTAN FUNCTIONS AND ACTIVITIES

2.1 DEPARTMENT AND TEIR FUNCTIONS

In national bank the work based on its nature is divided among different department. The
main department that I came across as an internee are cash department, Account opening
Department, Clearance Department, Credit Department, and Foreign Exchange
Department. These department work and their activities are discussed here.

2.2 CASH DEPARTMENT

Cash Department mainly handles the following functions.

a) Receipts
b) Payments
a) Receipts
The cash that leaves and enters the bank are recorded by the cash department.
The cash either leave or enters the bank through cheque, Electronic Transfer,

5
 or in form of cash withdrawal. The accounts are debit and credit by the cash
department when a transaction takes place.
b) Payments
The bank carry an obligation to pay the money deposited by the customer
either to the customer himself/herself or to the bearer or to the order of the
designated party.
The commercial banks in Pakistan handles and pay money against two types of
cheques.
a. Open Cheque
The Open Cheque as its name suggest are open to everyone. The
cheque can be cashed at national bank cash counter upon
presentation.
b. Crossed Cheque

The crossed Cheque are not paid in cash, the cheques are crossed and are paid directly
into customer account. The crossed cheques are more secured as in case of any misplace
or loss of crossed cheque the funds will go directly into customer account, compare to an
open cheque which can be cached by anyone.

2.3 ACCOUNT OPENING DEPARTMENT

High number of customer accounts means large amount of deposits availability for
investment and business purpose to banks. Before 10 years, banks were highly targeting
potential customers to open account with them which somehow enabled them to succeed.
But in last few years money laundering and illegal activities surfaced which compelled
commercial banks to have preliminary investigation before opening customer account.
The bank must know customer integrity, reputation, occupation, and nature of business.

2.3.1 FORMAL APPLICATION.

6
The customers are required to put a formal request to open an account. An account
opening form is to be filled by customers before opening an account with the bank. The
account Opening form list terms and conditions which mostly are ignored by customers
as I observed during my internship.

2.3.2 SPECIMEN SIGNATUE

To operate the account the customers are given two for signature purpose. The cards are
signed twice in their respective required areas and filled by putting customer account
information.
2.3.3 MINIMUM INITIAL DEPOSIT

The customers are required to deposit minimum amount to open an account. The natonal
bank charges Rupees 1,000/. Minimum initial deposit to open an account. The minimum
initial deposit vary from bank to bank.

2.3.4 OPERATING THE ACCOUNT

After having preliminary investigation and opening of the bank account, the bank provide
cheque book, ATM card to run the account. Others paper material like deposit slip, E-
Transfer slip can be collect from the bank when needed as they are easily and readily
available to every customer.

2.3.5 CHEQUE BOOK

The account opening department issue a cheque book to customer. The cheque book may
have 25, 50 or 100 leaves. The bank charges certain amount of money for issuing which
is deducted from customer account. The charges of cheque book vary from bank to bank.
Some commercial banks carry no charges against issuance of cheque books for customer
attraction.

2.3.6 CUSTOMER QUALIFICATION

7
In order to be a customer of a commercial bank, there are some rules that must by
customers at time of opening account. Which are
i) Must have acquired the age of majority.
ii) Must be of sound mind.
iii) Not expressively declared void.

2.3.7 ACCOUNTS TYPES

The national bank mainly opens following types of account.

i) Current account.
ii) Saving plus account
iii) Partnership account.
iv) Joint stock company account.
v) Agents accounts
vi) Dollar account
vii) Euro account

2.4 CLEAREANCE DEPARMENT

The clearing house department clears funds that are directed towards customers account
and drawn on different banks cheques rather than the host bank. A clearing house is
basically an association of commercial banks in a given locality for interchange and
settlement of credit claims. The function was performed by state bank of Pakistan,
however in places where SBP bodies were absent, the national bank would act as a
mediator in clearance.
Today the National Institution of Financial Technology (NIFT) carry the clearance house
role under state bank of Pakistan supervision.
When cheques of same bank are issued and is deposited in other branch of respective
bank , then in such case the internal bank administration act as a clearance agent, which
allows the total liabilities and assets of a bank unchanged.

8
However, when cheque is issued and is deposited into different bank account with
different name, then the NIFT play its clearance role.

INWARD CLEARING
The inward clearing book is used by the bank to record all the cheques received by the
bank.

OUTWARD CLEARING
The outward clearing book is used to record all the cheques details that banks delivers to
other banks.

2.5 ADVANCES DEPARTMENET

The bank being a profit seeking institution attracts surplus funds from customers against
low rate of interest and extends at higher rate of interest. The difference between the
interest paid and interest charges is the main source of income for commercial banks.
However, the earning of bank comes with a risk considering the advances sensitivity. The
risk associated with advancement of loans cannot be eliminated but can be
reduced/minimized with commonly used techniques. The commonly used principles or
criteria for extending loans to customers by commercial banks are
a) Safety factor of funds is considered by checking borrower reputation.
b) Ability to pay funds upon maturity, for this purpose financial statements are
evaluated.
c) The time for which the advances are made.
d) The risk factor in line with banking policies.

2.6 REMITTANCE DEPARTMENT

All the commercial banks deals with money receipts and disbursement. The remittance is
one of the major and routine function of commercial banks. The remittance department is
associated with transfer of money form one branch to another branch or to any other
bank.
The remittances offered in national bank are
9
 a) DEMAND DRAFT

The demand draft is widely used by customers to transfer funds to other parties for
business purpose. The customers are required to fill the demand draft application form by
inserting the beneficiary name, beneficiary name, and the name of the sender. The
demand draft is issued after customer deposits the money that needs to be transferred.
The transaction is recorded and accounts of both sender and receiver are debit and
credit in their concerned banks accounts.
The Demand draft is of two kinds
OPEN DEMAND DRAFT
Where the payment is made in cash.
CROSSED DEMAND DRAFT
Where the payment is deducted from customer account in the bank.
b) PAY ORDER

The pay order compared to demand draft is more convenient, simple and secure to
transfer the funds. All commercial banks charges a fixed portion of money against
pay order. The charges vary from bank to bank.
c) TELEGRAPHIC TRANSFER

Another form of remittance is the telegraph transfer, which is basically an order by

telegram to a bank to pay a specified sum of money to the specified person. The
customers are required to fill the application form requesting for telegraph
transfer. The vouchers are send to customers for record purpose.

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CHAPTER-3

NATIONAL BANK OF PAKISTAN PRODUCTS AND SERVICES

National bank being a leading bank is involved in offering number of products and
services, some of which are highly in demand. The products and services offered by
National bank of Pakistan are

3.1ONLINE BANKING

The national bank like others commercial banks offers online banking facility to its
customers round the clock. The online banking enables the customers to transfer funds
electronically by using national bank online banking application. The online banking is
more convenient and time saving as it allows customers to get their transaction done
without going to bank.

3.2 NATIONAL BANK OF PAKISTAN CASH MANAGEMENT

The national bank provides cash management services to large national, international,
and multinational corporations. The facility is provide trough national bank network of
online branches that enables customers to realize their proceeds from all over the country,
supported by real-time MI.

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3.3 NATIONAL BANK OF PAKISTAN HOME REMITTANCE

National bnak home remittance offers inflow of foreign remittance that are credited in the
beneficiary’s account within minutes. Cash payments options also are available to
customers at national bank branches on behalf of X pressmoney and MoneyGram along
with cash payments from others correspondents all over the world.

3.4 NATIONAL BANK OF PAKISTAN PROJECT AND STRUCTURED

FINANCE
The national bank of Pakistan is actively involved financing different projects after
careful evaluation. The loan is made available towards a project in cash flows, risk are
measured and allocated amongst stakeholders.

3.5 NATIONAL BANK OF PAKISTAN EQUITY CAPITAL

National Bank of Pakistan provide services for raising customer’s equity by offering
different kinds of common and preferred shares. The offered shared are subscribed by
customers while the bank plays a role of mediator.

3.6 NATIONAL BANK OF PAKISTAN ADVISORY SERVICES

National Bank provide services to large corporations and companies for raising capital,
investment related decision, advises regarding finance of a project.

3.7 NATIONAL BANK OF PAKISTAN ISLAMIC BANKING

The National Bank now engaged in Islamic banking by providing riba free banking
services. The Islamic banking is getting the wide acceptance among customers
particularly among Muslims.

3.8 NATIONAL BANK OF PAKISTAN AGRICULTURE SERVICES

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The National Bank is providing financial services to the agriculture sector. Pakistan being
an agriculture country is facing stiff economic situation meanwhile. The government
initiative to boost agriculture sector has started an initiative by providing loans to farmers
and agriculturists. The National Bank joins government hands by providing loans to
farmers and agriculturists.

3.9 NATIONAL BANK OF PAKISTAN ACCOUNTS

National bank provide its customers to open various types of accounts to meet the routine
requirements of customers. These accounts ensure ease and freedom to customers at
different branches all over the country. These accounts include
i) Current Account
ii) Saving Account
iii) Business Account
iv) Basic Account.

3.10 NATIONAL BANK OF PAKISTAN VISA CREDIT CARD

National Bank offers its customers VISA card of Classic, Gold, and platinum that provide
superior services, travel privileges and shopping pleasure. The National Bank also offers
comprehensive insurance, installment plans, reward points and SMS alerts that give a
different that provide a different touch to the world of credit card. These features allows
the customers to roam freely around the world without being worried about finance.

3.11 NATIONAL BANK OF PAKISTAN CAR FINANCE

The National Bank also provide an amazing facility to its customer to purchase their
dream car with low mark-up and easy installment with flexible terms and conditions.
The installment can be paid monthly or at in lump sum.

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3.12 NATIONAL BANK OF PAKISTAN SMART CARD

The National Bank smart card allows the customers to access banking services, manage
account, cash with drawl, funds transfer, payment of utility bills, recharge prepaid
conditions and a lot of others kinds of facility. The smart card of National Bank is in high
demand particularly in posh area.

3.13 NATIONAL BANK OF PAKISTAN RUPEES TRAVELERS CHEQUE

(RTC)
The National Bank rupee traveler’s cheque is widely popular in the business community.
The reason of being its popularity is its nature of being secure, safe and continent. The
Rupee traveler’s cheque is issued by the bank to the customer against deposits. The
customers carry the RTC nationwide most often for business purpose.

3.14 NATIONAL BANK OF PAKISTAN ATMS

The National Bank carry the largest chain of ATMs nationwide that provide round the
clock services to the customers to withdraw cash, pay their utility bills, funds transfer.
These ATMs are easily accessible and are safe and secure. The ATMs are being observed
through CCTC cameras for security purpose.

3.15 NATIONAL BANK OF PAKISTAN LOCKERS

National Bank also provide its customers the facility to protect their valuable luggage in
National Bank lockers. These lockers are available to customers for the deposits of their
valuable documents, ornaments, cash or any other valuable items.

3.16 NATIONAL BANK OF PAKISTAN BANK INSURANCE

The National Bank provide insurance for various need of customers. The customer takes
National Bank insurance coverage for child education, for marriage, for security of
dignity after retirement. National bank also provide insurance coverage to the goods
imported or exported globally allowing the business community ease and relaxation.

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3.17 NATIONAL BANK OF PAKISTAN CALL CENTRE

The National Bank has amazing and well equipped call Centre that handles customer’s
queries and provide timely solutions. The call centre work round the clock and addresses
issues relating to bank matters.

3.18 NATIONAL BANK OF PAKISTAN MOBILE

Considering the technology boom and constantly modifying structure of business into
more technological shape. The National bank launched the mobile app that allows the
customer the freedom to control their account using their own mobile set. The national
bank mobile app allows customers to transfer funds, pay bills, and check their account
statement.

3.19 NATIONAL BANK OF PAKISTAN VIRTUAL BANKING

The National bank in this technological isn’t lacking behind in the race. It provides its
customers the facility to manage their account via internet round the clock for funds
transfer, payments of debts and liabilities. The virtual banking allows the customer more
free hand to manage their account at ease and at their convince.

15
 CHAPTER-4

SWOT ANALYSIS

Giant corporations in this competitive world despite of having strong financial strategies
and Marketing strategies do carry weakness in their team or in the organization. The
SWOT analysis is the evaluation of the Strength, Weaknesses, opportunities and threats
of an organization.
Following are the observed strength, Weakness, opportunities and threats of national
bank.

4.1 STRENGHT

i) National bank has been operating in the market for more than 67 years, thus
giving an edge to national bank over others banks in terms of customer
creation, customer retention and customer loyalty.
ii) National Bank over the years has shaken hands with international banks for
strategic alliances to boost the services being provide to the customers both
nationally and internationally.
iii) The strategic alliances National Bank has made with international institutions
has been a sound source to attract customers.
iv) National Bank has strengthen itself by providing ATM facilities to customers
round the clock and carry the largest chain of ATMs in Pakistan.

16
 v) National Bank is the first Bank in private sector to provide its customers with
e-banking facility.
vi) The strength of NATIONAL BANK OF PAKISTAN becomes more dominant
as their policies and management are free from any kind of political
interference.
vii) The RTC (Rupee Travelers Cheque) in my opinion is one of the leading and
most desired strength that customers are constantly enchasing today for safe
and secure payments of funds.

4.2 WEAKNESSES

Despite of the strengths that distinct national bank from others competitors in the market,
there are weakness that has badly disappointed the customers.
i) The product and services national bank offers to customers are only known to
customers. The customers are not well aware of the products and services they
can use at national bank, which has not only damaged bank profit margin but
also has lost market opportunity to customers.
ii) The bank shows wide difference in treating customers. Customers with heavy
deposits are given immense priority and time, while the customers with low or
minimum deposits mostly are ignored and are treated with frail face.
iii) National bank employees to a larger extent lacks the motivation in work. The
job activities stresses the employees thus resulting poor performance and
failure to meet yearly target
iv) The Manager of national bank are given deposits target every year, which
highly effect the manager health and work efficiency, as many managers are
fired considering their low performance in deposits, despite of the bank top
management knowing about the bad market condition nationwide.
v) The bank till now has advertised heavily in helping farmers in agriculture
sector but unfortunately only wealthy landlord are welcomed to avail the
agriculture related facilities and services.

17
4.3 OPPORTUNITIES

i) There is a greater demand for commercial banks in rural areas, the banking
facility can be extended to the far off areas to properly regulate the money.
ii) Customers to a larger remain unaware of the stocks of companies that national
bankoffers,national bank should take keen interest to inform the customers to
but companies shares thus to secure the idle opportunity.
iii) The national banks are growing at slow rate particularly at international level
compared to competitors. For maximum growth the international market share
must be captured.
iv) Many commercial banks are getting merger to capture share of markets. The
national bank has great opportunity to get a merger with foreign with national
or international banks for maximum profit.

4.4 THREATS

In today’s competitive environment the large organization aren’t safe. The great portion
of risk comes from the lower level. The threats that are faced by national bank of
Pakistan are
i) The opening of new foreign banks in Pakistan has create more competition for
national bank.
ii) The stiff competition from national bank competitors and the services offered
by them are greatly in line with national bank products and services.
iii) High use of technology and software by competitors like HBL are pushing
national bank behind in the race.

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 CHAPTER-5

RECOMMENDATIONS AND CONCLUSION

This chapter include recommendations and suggestion needed in the current structure of
national bank. The recommendations and suggestions are presented here after thoroughly
observing national bank affairs with customers and employee.

5.1 CASH COUNTER EXPANSION

The cash counter at national bank remains highly busy throughout the month particularly
during morning which has been national bank peak time of receiving customers. The
management of customers at peak times becomes a challenging task for the tellers and
cashiers that negatively affect the working environment and moral of employees at
national bank. Management of customers particularly in cash department either by hiring
new cashiers or tellers or by introducing the new and widely implemented ticketing
method would render national bank operations more reliable and feasible.

5.2 CUSTOME BIASEDNESS IN DEALING

The biasedness that national bankemployee’s shows towards employees based on their
deposits with national bank has incredibly damaged the bank reputation in eyes of
average or salaried customer. The national bank employees shows wide difference in
their behavior towards treating customers with heavy deposits and customers with low
deposits. Such biasedness should be replace and one positive behavior towards customers
should be approached.

5.3 MARKETING PLAN

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National bank offers various kinds of products and services almost to every walk of
profession. Such products and services are not being marketed properly hence major
portion of public and National bank customers remain unaware of the products and
services that national bank offers. An efficient marketing strategy must be implemented
to market the products and services that bank offers.

5.4 EMPLOYEE DISCRIMINATION

The targets for year that national bank branches receives either for deposits or for
accounts often troubles the national bank employees and allows them to go through
intense depression and uneasiness. Such targets should be re-assessed considering the
market forecasting and demand and supply factor to keep the employees moral and
motivation at high level.

5.5 CONCLUSION

The national bank of Paksitan despite of the stiff economic situation remains the most
reliable and profit making organization for years and the trends continues to project into
the future. The employees and customers relations has been the core source for national
bank to attract customers despite of having some lapses. The recommendations made in
this report concerning the lapses of national bank may help the bank to be more
productive and welcoming to both its existing and potential customers.

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