Anda di halaman 1dari 19

Internship Report

1. NIB BANK (Salam Banking)


1.1 Introduction to NIB Bank

As Salam is a tribute to the people other banks for granted, a symbol of respect for those who
want respect more than any thing. Salam is an every day salutation a special tribute, a mark of
admiration of an expression of respect. Communicate through gesture, a node, a salute, a bow, an
Addab and through hand shake. So NIB is also famous with its name Salam Banking.

Basically, NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was built-in in March 2003
as a public limited company. It started business in October 2003 when all assets, rights and
obligations of the previous National Development Leasing Corporation (NDLC) and Pakistan
operations of IFIC were combined with and into the bank with a paid up capital of Rs.1.2bn. In
April 2004 the Pakistan operations of Credit Agricole Indosuez were also merged with and into
NIB. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank,
through Bugis Investments.

This shareholding was promoted and enhanced to over 70% in June 2005 following an raise in
NIB's paid up capital to Rs.3.4bn. NIB Bank has since grown speedily from a base of 2 branches
in 2003 to 45 in the 4th quarter of 2007. Total assets have grown-up from Rs.9bn in December
2003 to Rs.87bn (excluding acquisition of PICIC through rights) as of September 30 2007, a
CAGR of 85%. Credit growth has been equally rapid, increasing from Rs.7bn to Rs.43bn in the
same period (a CAGR of 64%), resulting from successes in both the commercial and consumer
business.

Deposits for the same period have grown at a CAGR of 95%, reaching Rs.45.3bn. The overall
client base of NIB has also witnessed a remarkable expansion in the same period as of September
2007; from a few thousand to over one hundred thousand.NIB Bank's vision is to rank amongst
the top 5 banks in the country.

Therefore towards end of June 2007 it get hold of majority shares of PICIC with the aim of
merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited into
NIB. The acquisition was financed through the country's largest private sector rights issue, with
resultant increase in NIB's paid up capital to Rs.21.4bn. The PICIC acquisition has bought with it

1
Internship Report

another subsidiary "PICIC AMC" and associate "PICIC Insurance". NIB already has a
shareholding in NAFA, an Asset Management Company (AMC); thus its asset management
business will now also be improved, with diversification in the insurance business.

1.1.1. Mission & Vision of NIB Bank


1.1.1.1 Mission Statement
NIB’s Mission is to provide a banking experience so unique, that it compels each of our
customers to want a long term, multi-product relationship with NIB Bank.

1.1.1.2 Vision Statement


NIB’s Vision is to:

• To be the bank of choice for the most discerning segments of the consumer and
corporate markets in Pakistan.
• To revolutionize banking for the SME segment by creating new products and
distribution channels.
• To become a leading provider of investment banking and wealth management
services.
• To be a top-5 choice of employer, a premier developer of human talent, and an
organization that understands and honors its social responsibilities.

1.1.2. Progress & Achievement


The legal merger of PICIC, NIB & PCBL took place on December 31, 2007, once
all regulatory approvals were in place. NIB Bank led by Khawaja Iqbal Hassan,
supported by four business heads and ten business enabling function heads. Till
from that it is continuously doing progress. The merger has resulted in immensely
expanded network of 240 branches and total assets of over Rs.185bn. As a result
NIB has the second highest paid up capital of around Rs.27.5bn and ranks number 7
amongst commercial banks in terms of distribution network which is their big
achievement. Mergers will accumulate through lower cost deposits, better customer
service delivery channels and overall improved efficiencies. These would provide a

2
Internship Report

competitive edge in the face of increasing competition. Temasek Holdings remains


the largest single investor in NIB

Bank. Temasek is the business group from Singapore. This merger is one step forward in
combining the banking sector as visualization by State Bank of Pakistan and enhancing FDI as
per the Government of Pakistan's objectives. It offers long term banking relationship to their
customer through wide distribution channel embedded in their communities. It helps them in
their prosperity and growth.

1.2 Future Prospects of NIB Bank

We expect that the banking sector in Pakistan will remain extremely competitive for the
foreseeable future. Therefore, the success of any new institution will be a function of it clarity of
vision and efficiency of implementation.

While we are confident that NIB Bank will achieve strong growth in revenues, we believe it is
necessary to create the correct foundation for sustainable growth into the future. With an
acceptable level of controls and an appropriate level of technology infrastructure, NIB Bank is
poised to offer incomparable services to its valued clients through its countrywide network of
branches.

3
Internship Report

1.3 NIB’s Organization Structure

Board of Directors

Board Audit President and CEO

Committee

Head of Commercial
CFO
Head of Admin Banking Group

Head of Operations Head of Consumer


Business
& Technology

Head of
Head of Human
Resource Corporate Bank

Head of Head of

Compliance Risk Management

Head of Head of

Internal Audit Treasury

4
Internship Report

NIB’s Department

1.4 NIB’s Services/ Products

1.4.1 Loans
NIB in Salam Banking offers personal loan and CAP to the customer.
1.5.1.1. Personal loan
Nib gives personal loan to the small business man. Some important requirements are mention as
under;

• Minimum age of 21 years


• Maximum age of 65 the time of maturity
• Minimum tenure of business 3 years
5
Internship Report

• Sole proprietorship
• Proper business setup
• Secure/unsecured
• If business is secure than maximum limit of the loan is 750000
• In unsecured maximum 150000
1.5.1.2 CAP (Cash against property)
It’s a type of loan in which NIB takes mortgage of any property against cash. In case of any
defaulter, bank will sell the property of that person and avoid loss. It’s a part of risk
management.

1.5.2 Accounts

Types of accounts in NIB Salam banking are;

• Salam Business Account/ Salam Current Account


• Salam Bachat Account
• Salam Fix Account
• Salam Committee Account
• Sole Proprietor Account
• BBA Account
• Business/Company Account
• Partnership Account

2 INTERNSHIP
2.1. Functioning of Relevant Departments

6
Internship Report

2.1.1. Customer Service Department


NIB is trying to serve according to the desire of the people. People want to choose where the
mark up rate is low, where the procedure is easy and where the easy installment are possible, so
according to these requirement of the people of NIB decreases the mark up rate to 9 %,which is
lowest markup rte in the Pakistan, basically in the banking sector, they start to serve the market
with two different strategies, first is to introduced the products or service on low price, and then
increase the service charges, and 2nd one is to introduced the service on high price and then
decrease the charges.

The NIB Bank is using 2nd strategy. And in the future of NIB is trying to maintain this strategy
for gaining the market share. The main responsibilities in this department were;

• To attract the customers and retain them.

• To listen the customer’s complain and solves their problems and confusions (if
any).

• To fill deposit slips.

• To clear cheques.

• Money Transactions.

• Account opening.

2.1.2. Credit Department

This department is responsible for the lending of the loan to the customer brought by the
Relationship Managers. They check the facts & figures mention by the customer are correct and
follow the certain policy. The process of loan lending to the customer is;

2.1.2.1. First step

7
Internship Report

• Sale department (RM) bring login first from the market.


• They prepare the case according to the policy.
• RM handover the file to BDM
• BDM enter the data on his MIS and then handover the file to the credit department.
2.1.2.2. Second Step
• Credit department first of all screen the file
• ECIB and DC requested
• Telephonic verification
• Residence verification
• NADRA verifications
• Reference check
2.1.2.3. Third step
This step is most important step for loan lending, which is “Credit Meeting”. BCIM conducts it
on the business spot with the customer to asses the business worth and the reputation of the
customer in the market. Few important things while conducting the credit meeting are

• Condition of the stock


• Business setup
• Cash flow analysis
• Sale
On the basis of credit meeting BCIM take the final decision about the lending that how much
customer worth for the loan.

2.1.2.4. Fourth Step

Then the credit department does final step, which is the calculation of the loan in the Fine one
Production (online software).

2.1.3. Operations Department

8
Internship Report

Operation Department’s main responsibilities are;

• To collect installments of loans.

• Deposit and withdraw cash.

• Make clear transactions of credit and debit.

2.2. Assignments

2.2.1 1st week

They told me about the General banking, it was basically divided into the following sub
departments, and I just worked in some of the departments, the major departments of general
banking are as follows:

• Account opening

• Clearing

• Term deposit
• Customer relationship
• Issuance of Checkbook after opening Account
In this week I also met with the my colleagues and senior officers, than my senior Manager
Qaiser send me to my colleague Manager Saqib, I took all the instructions from Mr. Saqib.

2.2.2 2ND week

My 2ND work in the bank was to screen the files according to the policy of the bank.

Supervisor Mr.Saqib told me the process of screening. In screening the files given by the sales
department is then checked later in credit department. Few important steps were

• Match the information with CNIC


• Name of customer and spell check
• Signature match

9
Internship Report

• Any other discrepancy, if found return the file to the sales department.
• To insure all other forms attached
Credit department received daily 8-15 files from the sales department. I did this job with full
responsibility and conducted it very well.

2.2.3 3rd week

2.2.3.1. Telephonic verification

After screening the files in few days second important thing I did was telephonic verifications of
customer in third week. In telephonic verification all the facts & figures mention in the file by
the sales department on behalf of the customer are checked to ensure the right information of the
customer.

Normally one telephone took the time of 10-15 minutes. Two-reference mention in the file also
contacted on the phone to ensure the relationship with the customer. It was very time consuming
process often given number was not contacted.

2.2.3.2. DC Request (Data Check)

I also requested for the DC in NIB. DC prepare on the Excel sheet in which information about
customer was mentioned. Few important things were;

• Name of the branch

• Name of the RM

• Father name of customer


• DOB
• Residence address
• Residence Telephone
• Business Name
• Business address
• Business telephone
• Cell phone

10
Internship Report

• Require loan amount


• City

2.2.4. 4th week


2.2.4.1. Account opening

Although the procedure of opening an account in a bank is a quite complicated job but some of
the basic necessities for opening the account are as follows:

• Introduction

• National I.D. card

• Personal data
• Details of dealing with other banks.
These are some of the basic requirements for opening the account.

2.2.4.2. Issuance of Cheque book

Once the account is opened, NIB Bank issued the cheque book to the customer so that they could
withdraw their money whenever they like. The producer of issuance of the cheque book is as
follows:

For the customer who already had an account with the bank, the lastly consumed cheque book
application slips with the help of which a new cheque book is issued. The person who is going to
open a new account for the first time gets the cheque book free without any requisition slip.

For the new depositors the cheque book is not issued at the time of opening of account, rather it
is issued after three days but, as the most of the customers are from the armed forces so they
usually get the cheque book earlier. NIB BANK issues the cheque books for both the local and
foreign currency accounts. I remained there in the account-opening department for one week and
daily I learnt a new thing.

In the start I had stated the account opening procedure and issuance of cheque book in a very
comprehensive way, now let me tell u the further related detail of account opening.

11
Internship Report

• First of all a customer comes and gets the information regarding the opening of account.
After getting the proper information he gets an introduction and goes for opening an account
of any kind whatever he wants.
• I filled the form regarding the opening of account which is in fact a request.
• Then I filled S.S card which contained the signature that will be used in future in order to
identify that you are the same particular person who perfectly eligible for receiving the
benefits.
• The S.S card and the application form are verified and the verification stamp is imposed on
it.
• After verification of application forms are pasted in the file with the serial no. which is
actually the account no. Allocated to the respective customers.
• The cheque book is issued to the customer after three days.
• A letter of thanks is posted to the customer as well as the introducer. The introducer is
thanked for the two perspectives. The procedure for opening the account comes to an end
after sending the letter of thanks.
The account becomes Inactive if there is no debit transaction. Account becomes active if there is credit
transaction.

2.2.5. 5TH Week

I told My supervisor Mr.Qaiser that I want to learn more about the banking than he told me about
Zakat process and Checking and amendment in the signature in my 5th week. He told me about
Zakat. Zakat is deducted on the first of Ramadan. However, the Bank can't deduct the Zakat if
you have given Affidavit (declaration regarding not to deduct Zakat on Stamp paper).

For non-residents the tax and Zakat is exempt (visa is required as the proof that the particular
person is really a non-resident). Similarly Christians has not to pay the tax, they have to pay the
tax only.

2.2.6. 6th week

12
Internship Report

It was my last week of my first Internship. I got a lot of information which I did not know previously.
Then I requested my Supervisor to let me go in Sales Department. He took permission from Head office
that Internees are allowed to move for survey. He gave me permission then in my last week I worked in
the field as sales & marketing. I had visited many boutiques and beauty parlors and convinced ladies to
take loan. I was able to take 2 customers, one has beauty parlor and 2nd customer was a lady doctor.

2.3. Learning

I had worked as an Internee in NIB Bank for 6 weeks as per required by University. During my
Internship, there was a tremendous atmosphere in NIB Bank. I learned so many things from their
management like how to work in a standard place. They are using their own made software
which is used by Bank for online transactions.

• The most important benefit of this internship is that I got practical exposure of work
place.
• I got practical experience of working practices related with my field.
• I learned that how to manage things and how to create balance among work life and
personal life.
• These learned management practices are going to be very helpful for me while on job.
• Management experience from every aspect was really very much friendly
• Management did help me a lot during my work they always guide me especially
Manager of NIB Bank.
• During my internship I learned how to talk and behave with employees and senior
management.
• During my internship I have seen that no extra burden given to any employee. But if
there is a need of extra work the manager always do himself (on importance basis) and went
back to home when not a single work remaining.

2.4. Observation
13
Internship Report

During my stay I had observed that there is no Reward system for internees and there are some
employees who don’t give as much importance to internees. Thirdly I observed Selections of
employees are very rare from internees. I think that in Wah Cantt Branch, NIB has competitive
edge of providing loans for businesses because no other bank is seemed to do this act.

2.4.1. SWOT Analysis


As SWOT analysis is based on the assumption that if managers carefully review such strengths,
weaknesses, opportunities, and threats a useful strategy for ensuring organizational success will
become obvious.

2.4.1.1. Strengths

Strength can be defined as an area where a company is best at doing something or a feature that
puts a company at an advantage in comparison to its competitors. I had observed that NIB Bank
enjoys the following strengths.

• The standard of service is very good and customers are satisfied with that service.
• They have a computerized system, and online banking.
• NIB is the 7th largest bank in Pakistan with over 240 branches
• NIB Bank’s ATM’s are linked with a number of leading local and foreign banks.
• Automated Systems made NIB Bank to rise with the pressure of rising competition.
• The employers at NIB are offered reasonable monetary benefit. Normally two bonuses are given
Eid-Ul-Fitar & Eid-Ul-Azha.

• Promoting savings and investment

• NIB Bank has well established website and is up to date about the bank.

2.4.1.2. Weaknesses

A weakness is defined as an area in an organization where the organization is not as good at


doing something as its competitors or a thing which an organization lacks or disadvantage in
comparison to its competitors. Based on the above definition NIB Bank has the following
weaknesses;

14
Internship Report

• Branch area is very small with respect to hired employees.


• Online recruitment (unable to collect a pool of candidate because net is not available
everywhere in the country).

• Branch manger can not fire any employee on his bad performance as they are hired as
permanent employees.

• Centralized organizational structure.

• Information system needed for cards may not be compatible with legacy systems.

Opportunities
An opportunity can be defined as a change in external environment, which if properly exploited
with the organizational strengths will result in enhanced sales, market share, or income. Using its
strengths, NIB Bank can avail the following opportunities;

• Many areas for new branch opening.


• Large market potential.
• Favorable demographic changes in society.

• In the economy of Pakistan where other banks are very carefully lending the different
loan NIB giving personal loan in huge quantity. This will result in great market share in
future.
Threats
Threat can be defined as a change in external environment which if not met with proper
strategies will result in loss of revenues, market share, or income. In the context of NIB Banks
external environment, the following potential threats exist;

• Foreign banks operating in Pakistan are playing a significant role by incorporating new
technologies and providing better quality services thus creating a threat to the local banks
especially to NIB Bank which tries to develop its image in the eyes of customers.

• Huge competition with local and foreign banks

15
Internship Report

• Rapid technological advancements has become challenge for NIB Bank Ltd

• Already many huge banks are doing business in the banking sector.
• Devaluation of Pakistani currency.
• The bank is facing threats with the emergence of new competitors especially in terms of foreign
banks.

2.4.2. Recommendations

First of all there is no Job security in the NIB Bank. The employees in the organization should be
insured job security so that there is no pressure on the employees while performing their tasks.
NIB needs to advertise it’s self as it is not so familiar among the people like other banks.
They should give training to its staff about the knowledge of the products of different banks as
they then able to compare the advantages of their product with respect to others.
They should provide the facility of online submission of utility bills. They should launch home
and car loans services. NIB should also introduce “Dress-Down” day i.e. employees should be
given permission to wear dresses other than formal dresses on certain days so as to make them
relaxed while work.
I found many complaints regarding the ATM issues in NIB. Most of the time ATM remained
offline. NIB needs to make sure the alternative links for the customer. At last they have a very
small building and there is no space for sitting for customer they should try to expand their
building.
• Assessment Of Performance Of Employees

There are no proper criteria for assessment of performance of employees and most of the time it
is on the personal judgment of the manager who forward the assessment sheets of all employees
to area office for their promotions.

• Problem With Information System

16
Internship Report

NIB Bank Ltd information system is not very good and most of the time online
transaction service of the Bank network is down, which occurs to be a big issue in smooth
working, management really needs to work on it.

• No Rotation Of Employees From Department To Department

There is not any rotation of employees within departments and cross departments.

Therefore, the top management should immediately start thinking in terms of rotating the
employees in various departments, as this alter work force into human capital.

• Implementation Of Management Policy

NIB Bank Ltd Limited should develop a very serious management policy to attract multi NIB
corporations as its clients. This action, if actualized, would not only prove to be highly profit
generating, but it would also contribute a lot towards NIB Bank Ltd’s image building.

• Advertisements/Marketing

Bank needs to use more marketing channels to make public aware of its products and
services. In the presence of intense competition NIB Bank Ltd has to realize the
importance of marketing.

• Distribution Of Work

Management should distribute work equally among different employees. Some of the employees
are overburdened while some sections are overstaffed.

• Staff Training & Improvement In Processes

To keep staff well equipped and updated with enormous changes in current banking
environment, training are an important part of survival. Especially for the customer
service staff and phone banking department as they are at front end and need more
efficient performance for having satisfied customers.

3. CONCLUSION

17
Internship Report

During my stay at NIB Bank limited I have learned a lot of things about professional field like
culture of the organization and the behavior of employee like how to deal with customer to
become a loyal customer of the organization. NIB is a Singapore based business group. Group
has diversified type of business all across the globe. In NIB Bank, employees have very good
relationship among themselves and also with their customers. Employees treated me very well
during my internship duration and helped me to understand the way of doing work. NIB Bank
has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007. The
internship helped me to improve my confidence level and I learned the way how to deal the
organization level colleagues. It also increases my interaction with different people from
different background and helped me to learn and understand their values and how to deal them in
effective manner. In NIB Bank Selections of employees are very rare from internees I learnt a lot
from my internship which will help me a lot in my professional career.

The Pakistan economy continues to face the challenges arising due to global economic crisis.
Though the economy has shown some positive trends, however, many indicators need to be
further improved to put the economy back on stability track.

References
18
Internship Report

www.nibbank.com.pk

Mr. Qaiser Mehmood Malik (Branch Manager)

Mr. Muhammad Younis Malik (Branch Operation Manager)

Mr. Khurram (Branch Development Manager)

19

Anda mungkin juga menyukai