Executive summary

I am doing my internship in famous and reputed bank of Pakistan the name of that bank is National Bank of Pakistan the report is based on my six weeks internship program in National Bank of Pakistan. According to my observation during internship the NBP maintains an excellent position in banking sectors in Pakistan and this is based on the over all performance of National Bank of Pakistan. This report contains the detail of NBP and the departments where I worked during internship and these departments includes Account Opening Department, Bill Collection Department, Cash Department, Credit Department and Remittance Department. It also includes the Ratio Analysis and these ratios include all ratios that my university required with complete formula, working, table, graph and interpretation. I also mention my work experience during internship in different sectors. I also discuss in my report the executive summary of NBP and Recommendations for Improvement and the sources that I used to make this report. I have learned and informed about different aspects specially about banking sector, its my 1st working experience so it will help me while I will be professional. NBP has 1254 nationwide and almost 25 branches operating in other foreign countries including USA, China, France, Hong Kong, Azerbaijan, Bangladesh, and Hong Kong. The objective of this Internship was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of National Bank of Pakistan. According to my knowledge there is much possible perfections, which we can make positive changes in the system of NBP in coming years. In this my NBP report I also talk about the way of investment, rates of investment, all types of financing and loans services the National Bank of Pakistan provides. The problems of branch where I am doing internship F-10 markaz branch are also discussed.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:10pm Table of content Lesson No. 1. Title page Title / Topic Page No. 1

a. b. c. d. e. 2. 3. 4. 5. 6 7. 8. 9. a. b. c.

d. e. f. g. 10. a. b. c.

Name of the organization Name of the Internee, Student ID and session Submission date of the internship report Name of the University VU logo Letter of Undertaking Scanned copy of the internship Dedication Acknowledgement Executive summary Table of contents Brief introduction of the organizations business sector Overview of the organization Brief history Organizational Hierarchy chart Business volume (Total number of stock, shares, bonds/ commodities, future contracts planned for a particular period etc). Product lines (List complete range of products/ services of the organization) Competitors Brief Introduction of all the departments Comments on the organizational structure Plan of your internship program A brief introduction of the branch where you did your internship Starting and ending dates of your internship Names of the departments in which you got training and the duration of your training Training program Account Opening Department Bill Collection Department Cash Department Credit Department Remittance Department

1 1 1 1 1 2 3 4 5 6 9-10 11-21 11-13 14-15 16

17 18 19-20 21 22 17 17 17

11. 1st 2nd 3rd 4th 5th

23 23 25 26 27 28

12. a)

Ratio Analysis Liquidity Ratios Liquidity ratios measure a firms ability to meet its current obligations. Current Ratio Acid Test Ratio Working capital Leverage Ratios Leverage ratios measure the degree of protection of suppliers of long term funds. Times Interest Earned Debt Ratio Debt / Equity Ratio Debt to Tangible Net worth Ratio Total Capitalization Ratio Profitability Ratios Profitability ratios measure the earning ability of a firm. Net Profit Margin Return on Assets DuPont Return on Assets Operating Income Margin Return on Operating Assets Return on Total Equity Gross Profit Margin Activity Ratios Activity ratios measure a firm's ability to convert different accounts within their balance sheets into cash or sales. Total Assets Turnover Fixed Assets Turnover Market Ratios Market ratios are commonly used by the investors to assess the performance of a business as an investment and also the cost of issuing stock. Dividend per share

29 29

b)

29 31 33 35

c)

35 37 38 40 41 43

d)

43 45 47 49 50 52 54 55

e)

56 57 59

59

 13. 14. 15. 16. 17.

Earning per Share Price/Earning Ratio Future Prospects of the Organization Conclusion Recommendations for Improvement Reference & Sources used Annexes

61 63 65 66-67 68-70 71 71

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:10pm Brief introduction of the organizations business sector

Am doing my internship in NBP f-10 branch markaz Islamabad now I will discuss the brief introduction of national Bank of Pakistan in business sector The national bank of Pakistan was established in 9th November 1949 under the ordinance XIX. The NBP commenced its operations from 20th November 1949. The Bank was incorporated under the National Bank of Pakistan Ordinance 1949 and is listed there Pakistani stock exchanges. The bank controls treasury dealings for the Government of Pakistan as a representative to the State Bank of Pakistan. NBP offers a commercial banking and interrelated services in Pakistan as well as out side of Pakistan. The business sector of NBP is banking sector and the banks plays a vital role in an economy of country NBP also played an important role NBP also provide banking or financial services in Pakistan bank plays a major part in economy now a days the current economics crisis in united stares and Europe as well as Pakistan as we see day by day down sizing and is because the ongoing weakness of major bank and the result of all this is credit and capital crush so we can say its prove from history that the banking sector is plays a vary important role in national and global economy. National bank of Pakistan provides to its customers the following benefits saving accounts, home financing, personal loans, ATM and debit cards, financing facility for stock investors, Internet based home remittance service, cash against gold, and personal accident insurance these benefits is vary useful for customers. In between 2002 to 2007 the accelerated economy growth of Pakistan was underpinned by a strong banking sector the banking industry assets is above $60 its profit remain high and its NPLS are low. Pakistan is Islamic country and the national bank of Pakistan offers is

Islamic banking services these services include deposit schemes, like current deposit scheme and profit and loss sharing deposit scheme and also financing facilities and also provided letters of credit facility, issuance of bank drafts and pay orders, handling of remittances, government collections, collection of export bills and local bills, and utility bills collection services. It also provided international banking trade that provide services comprise letters of credit, trade financing, international payments and collection services, structured trade finance, document presentation and payment services, pre and post shipment financing, banktobank reimbursements, documentary credits, import finance, shipping guarantees, and cash management solutions. NBP is government bank so peoples trust to NBP is high as compare other banks and NBP provides trustee services to national investment trust, long-term credit fund, and endowment fund for student loans scheme.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:10pm . Overview of the organization a. Brief history History: NBP was established under the National Bank of Pakistan Ordinance in November 8 1949 in Pakistan and was 100% government owned. The need for the establishment came due to the reason of newly country with economics crisis. In July 1948 to carry on the responsibilities of issuing the currency and most importantly controlling the flow of money in side the country. Role: The Special Role of National Bank of Pakistan is occupies a unique position in the financial sector of Pakistan. It also acts as an agent of the Central Bank wherever the State Bank does not have its own Branch. It also undertakes Government Treasury operations. Ownership: NBP is 100% owned by the Government of Pakistan. Branch Network: NBP has an extensive domestic branch network of over 1500 branches located all over Pakistan. The Bank also has a presence in 24 international locations including the USA, United Kingdom, Europe and the Far East. Deposits of National bank of Pakistan: NBP holds 24.6% share of time and demand deposits in the country. Local currency deposits comprise 67% of bank's total deposits while foreign currency deposits account for the rest. Head office and Branches: Head office of national bank is in Karachi with their 1431 branches local and 24 branches internationally.

Provincial Headquarters: Sindh 06, Baluchistan 02, Punjab 14, NWFP 05, Azad Kashmir 02, total 29. Awarded: National bank of Pakistan was given awarded of best bank of the year in 2001, 2002, and 2004 by the banker a publication of financial times London. In 2005 the national bank of Pakistan is also given best bank of the year by the bankers by global finance magazine. National Bank has earned recognition and numerous awards internationally. It has been the recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine, the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and 2007, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kisan Time Awards 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been presented a Recognition Award 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards. Precise Summary of National Bank of Pakistan year by year The precise summary of National Bank of Pakistan regarding its countrywide and overseas operations is as fallows: In the year 1949 National Bank of Pakistan was established under the National Bank of Pakistan Ordinance 1949 and was 100% govt.-owned. In the year 1950 NBP established a branch in Jeddah, Saudi Arabia. The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4, In the year 1947 by the former Bahawalpur State In the year 1955 By this time NBP had branches in London and Calcutta. In the year 1957 NBP established a branch in Baghdad, Iraq. In the year 1962 NBP established a branch in Dar-es-Salaam, Tanganyika. In the year 1964 The Iraqi government nationalized NBP's Baghdad branch. In the year 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities between India and Pakistan. In the year 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch. In the year 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation.

In the year 1974 the government of Pakistan nationalized NBP. As part of the concomitant consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947). In the year 1977 NBP opened an offshore brain Cairo. In the year 1994 NBP amalgamated Mehran Bank (est. 1991). In the year 1997 NBP's branch in Ashgabat, Turkmenistan commenced operations. In the year 2000 NBP opened a representative office in Almaty, Kazakhstan. In the year 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan International Bank, of which NBP would own 45% and United Bank 55%. In the year 2003 NBP received permission to open a branch in Afghanistan. In the year 2005 NBP closed its offshore branch in Cairo which opened in 1977.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:11pm Organizational Hierarchy chart

Syed Ali Raza Chairman NBP Board of Directors Qamar Hussain President NBP MR. Tariq Kirmni Director Mrs. Haniya Shahid Naseem Director Ms Nazrat Bsahir Director Mr. Ekhlaq Ahmed Secretary Board of Directors

Organizational Hierarchy Chart at NBP Head Office Karachi

Organization Chart of NBP

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:11pm Business volume

In Millions

Description Profit before tax Profit after tax Shareholders equity Advances net Total Assets Deposits Investments Earnings per share

2006 26,311 17,022 353,045 316,110 635,133 501,672 139,947 12.65

2007 28,061 19,034 69,271 340,319 762,194 591,907 211,146 14.15

2008 23,001 15,459 81,367 412,987 817,758 624,939 170,822 11.49

2009 21,300 17,562 94,142 475,243 944,583 727,465 217,643 13.05

2010 2,4,415 17,563 103,762 477,507 1,035,025 832,152 301,324 13.05

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:11pm Product lines The product lines is given below

PREMIUM AMDANI PREMIUM SAVER SAIBAAN ADVANCE SALARY CASH CARD INVESTOR ADVANTAGE CASH AND GOLD KISAN TAQAT KISAN DOST PAK REMIT PROTECTION SHIELD

Services

Islamic Banking Student Loan Scheme Demand Drafts(DD) Equity Investment Commercial Finance Trade Finance International Finance Home Finance Foreign Currency Account Short Term Investment NIDA( National Income Daily Account) Foreign remittance Travelers Cheques Swift System Letter of Credit Pay Order (PO) Mail Transfer (MT)

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:12pm Competitors

Now a day in this world of competition the NBP is facing much competition. The competitors list of NBP is very large as there are many private and commercial banks operating in the country. Competitors of the NBP which are given below

MCB Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited

Saudi Pak Bank Limited Atlas Bank Limited SILKBANK Limited United Bank Limited Allied Bank Limited Askari Commercial Bank Limited Bank Al-Habib Limited Bank Al-Falah Limited. Standard Chartered Bank Limited First Women Bank The Bank of Khyber Bank of Punjab Faysal Bank Limited Atlas Bank Limited Bank Alfalah Limited Soneri Bank Limited Askari Bank Limited

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:12pm . Brief Introduction of all the departments There are many departments of National Bank of Pakistan I will write the following main departments of National Bank of Pakistan F-10 Markaz branch and where I got training as internee are given below: 1st Account Opening Department 2nd Bill Collection Department 3rd Cash Department 4th Credit Department 5th Remittance Department I already describe in detail of these entire department in my internship report One by one I will summarize or over view all these again.

1st Account Opening Department: In my 1st 2 weeks of internship I work as an internee in account opening department in NBP. Its a major department of NBP the basic purpose of Account Opening Department the relationship between banker-customer. Account opening department performs the duty of opening accounts and issues checkbooks to clients. A person who requests to open an account with the bank has to fill an account opening form obtained from any branch of National Bank of Pakistan. Types of accounts that are opened I learned in my training in account opening department the following account is opened. 1. PLS Account or PLS Saving Account 2. Current Account 3. Fixed Deposit Account 2nd Bill Collection Department: I also work in the bill collection department in NBP during my internship. The basic purpose of bill collection department is collected utility bills from customers that he pays at end of every month These bills include Water bills Gas bills Electricity bills Telephone bills 3rd Cash Department: I also work in cash departments during internship in NBP. Cash depart in vary sensitive department o every bank as well as National Bank of Pakistan No body is allowed freely like other department this department all depend on cash a security guard is also standing for safe from theft and also sensitive department some times customer pays frauds are made in this department so extra care needed in this department. 4th Credit Department:

In my internship program in NBP I also work in credit department. The basic purpose of this department id to collect spare, extra or surplus money or currency from peoples or customers at vary low rate and gives or provided lend this money at high rates to get more and more profit. Now a days NBP gives a vary low amount to customer because in Pakistan there is instability and day by day the investor go out from Pakistan because of in security financial crises is also big cause of it so the loan ratio is vary low down day by day with the passage of time. 5th Remittance Department: Finally in my last week of internship as an internee in NBP I work in Remittance Department. The remittance department transfers the money from domestic to international level. According to my learning there are two categories of remittance department 1st one is domestic or local remittance department and the 2nd one is foreign remittance department. In local remittance the transfer money with in national or domestic boundaries and in foreign transfer money out side from national or international boundaries In my internship program the manager told me the main functions of Remittance Department these main or important functions takes places in the following ways I observed these are Closing and scrolling of government collections, issuing of payment order, issuing of demand draft, issuing of call deposit, issuing of Mail transfer and issuing of call deposit. In NBP remittance takes places in the following ways. These ways are given below. 1st Telegraphic / Mail Transfers and its easy and fastest way 2nd one is Demand Draft / Pay Orders

g. Comments on the organizational structure

I understand during my internship program the Organizational Structure NBP is centralized but need some changes with the passage of time because in this world day by day technology changes and its necessary to change the Organizational Structure time by time and I also observed the NBP is the oldest bank of in Pakistan and in last 62 years a lot of changes in NBP Organizational Structure but I observed the Organizational Structure is not professionally developed and implemented. In NBP F-10 Markaz Branch where I work as internee in that department all employees in different department work properly and here Organizational Structure but also need some changes.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:12pm Plan of My internship program Introduction of branch Name of branch: National Bank of Pakistan F-10 Markaz Branch City: Islamabad Branch Code: 1933 Branch manager: Miss Asia Aslam Operating manager: Mr. Ali Phone Number: +92-051-9218734 I did my internship or training from National bank of Pakistan F-10/4 Markaz Islamabad and branch code is 1933.Under the branch manager Miss Asia Aslam. In this branch of national bank the branch manager is Miss Asia Aslam and Mr. Ali is operating manager both are superior working and very fair with their job. When I start my internship I face many difficulties because its my 1st experience to do training or internship in any where so I dont have experience practical work before but here cooperative management specially miss Asia Aslam Branch manager help me for my this 1st to complete my tasks efficiently and I observed the other management members or staff is also vary cooperative who also help me in a friendly manners. In start am little bit confuse but after the observed the cooperation of staff I enjoy my internship I also appreciate and thanks all management who help me to complete my tasks in good manners. Duration of My training or Internship Program

The starting date of my Internship Program is May 9, 2011 The ending date of my Internship Program is June 22, 2011 Name of the Department in which I worked in my internship.

Name of the Department Account Opening Department

Duration 2 Weeks

Bill Collection Department Cash Department Remittance Department.

1 Week 1 Week 1 Week

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:13pm Training program My training or internship program from National Bank of Pakistan F-10 Markaz Branch Islamabad I also mention the departments where I work as internee that is given below.

1st Account Opening Department 2nd Bill Collection Department 3rd Cash Department 4th Credit Department 5th Remittance Department

One By one I will describe in detail of all my training program departments

1st Account Opening Department The account opening department is a first department where I learned and spent my internship maximum periods 2 weeks as compares to other departments. In my vary 1st day I am little bit confused to start and learned about department because its my 1st experience practically but the cooperative staff and branch manager help me to understand all procedure now I observed how the employee work in this department and what is the requirements to open the account and what is the rules and procedure to follow the customer. In this department requires some basic requirements for open an account of customer the customer must have the reference of any residence of Pakistan who has already account holder of National Bank of Pakistan and when customer gives reference of

some ones who has account in NBP the bank confirms it with NADRA. After 3 or 4 days I learned many things about opening account and rules and procedures and also the requirements like what is the title of account, address of the customer, recent ID card number, National tax number, PTCL and Mobile number amount deposit, signature, Law must qualify the customer, Age of majority and must be of sound mind Than I learned and opened a account of customer under supervision of staff and these procedure must be followed the customer come to bank and meet the manager about account opening procedure than manager guide him or her about the account he or she wants to open in the bank than manager guide me and I follow the rules now give to customer account opening form along with document like signature card and Pay-in-slip. Than the customer fill the account opening from if he has any difficulty than management or account opening officer guide him or her and when customer fill are form this form sent to manager for approval than the concerned officer gives new account number and guide to deposit initial deposit in cash counter. And check book gives to customer according to customer need or requirement because some check books has 25, 50 and more its depend on customer requirement. When I opened some accounts than I know the procedure and after this its vary easy for me because I know now all procedures to open a accounts and I opened some accounts

Types of accounts that are opened I learned in my training in account opening department the following account is opened.

1. PLS Account or PLS Saving Account 2. Current Account 3. Fixed Deposit Account

The details of these accounts are given below one by one.

1.

1.

PLS Account or PLS Saving Account

1st I would like to discuss the PLS account or PLS saving account that I learned from manager it is interest free account mostly the lower or middle income level or small business man, Allam or Moulana or people who dont like interest like usually make such

deposit in this account the transaction. In this account the transaction is not every day or daily. Funds can normally deposited through pay order, cash, check etc.

1.

2.

Current Account

2nd I like to discuss the current account that I learned from manager this account or current account its depend on daily bases normally through cheque, ATM, Pay order etc drawn on the bank and these deposit stand the current liability of the bank. The bank keep fund of his hand and customer normally use this account mostly now a days through ATM because its vary easy and advanced method. And there is no limit for deposit.

1.

3.

Fixed Deposit Account

3rd I would like to discuss the fixed deposit account I learned from manager that this account normally opened and high faculty or extra ordinary people or business man for a long period of time and this type of account is less use as compare to other account. In this account the customer invest in different sector for a long period of time where his or her money is saved from theft and also with higher return. The other account I opened because these are daily use accounts and normal or middle class peoples use but this fixes account I dont opened because in my in my period of internship there in only 1 or 2 peoples who opened this account I learned but not accurate so I got more information from the manager of the bank.

2nd Bill Collection Department In my internship program I also worked in Bill Collection department in one week. In 1st day in bill collection department 1 get information from manager about the function, rules and procedure involve in bill collection department after get information from manager I see or observed bill collection department collects different utility bills which peoples pay every months. These bills include Water bills Gas bills Electricity bills

Telephone bills I collect some bills according to instruction that manager gives me about bill collection department and in bill collection department my duty is when collect bill is must see the due date and whats the amount collect in due date and these are written in every bill and after date because after date extra amount paid or late payment charges paid by the customer if bill not paid within due date. Also mention in bill manually if customer gives big note like note of RS 5000 and bill id 1050 than in bill written manually 5000-1050 = 3950 it means customer give 5000 note and bill amount is 1050 we deduct from 5000 and we gives 3950 the remaining amount to customer. The amount received like in due date amount received circle the received amount within due date and if payment id after due date circle after date and in after date late payment charges included and circle and collect money and than bank stamp and also sigh on it is its guarantee that this means f-10 markaz Islamabad branch received this bill. The bank also charges commission in each bill that is revenue of the bank and also for government of Pakistan. At the end of the day all amount counts count that received from from received against bill collection from customers and gives by the relevant bill collection department and bill collection department sends mail to the head office.

3rd Cash Department In duration of my internship in NBP as internee I work in cash department fro 1 week. In cash department 1st I try to understand working procedure in this department I also observed that cash department is the most important section in the bank. Cash department perform the function of bank payment and receipt, government receipt and payment and collection of utility bills The cash department is vary important and sensitive because in this department no body is allowed freely like other department this department all depend on cash a security guard is also standing for safe from theft and also sensitive department some times customer pays frauds are made in this department so extra care needed in this department. And if closing the balance is not match than the cashier must match it before leave this department some times hours takes to match cash in this department if cash not match than cashier pay with its own pay or with own recourses So cash department is vary sensitive department mostly people come for the purpose of cash in this department with drawn and deposit if any account holder comes to draw the amount it must b checked the total amount on cheque, date, signature of the account holder, and then he gets payment form the cash counter from the cashier and some account holder comes for the purpose of deposit the money in cash department.

4th Credit Department As an internee I work and observed in credit department for the duration of 1 week in National Bank of Pakistan F-10 Markaz Branch Islamabad. The basic purpose of this department id to collect spare, extra or surplus money or currency from peoples or customers at vary low rate and gives or provided lend this money at high rates to get more and more profit. According to my observation and work as internee in NBP during my internship I observe that the basic purpose of credit department is provide load to load seekers. These peoples get loan from bank and fulfill our requirements and bank charges interest against. I also observe now a days of technology every bank adopt this method to get profit. I observed when national bank of Pakistan F-10 branch Islamabad when NBP provide or gives to some one some basic information collect by the bank to reduce fraud because now a days some fraud peoples gets illegally loan from bank and cant return to bank some fraud peoples write wrong address and some are going out side of country and thats a big loss of bank so bank now a days bank confirm it with the customers near police station about the reputation of customer and NBP required some basic information and criteria before gives loan to peoples some basic information that banks gets like customer name, National Identity Card, The required documents checked is it in original from or not. Now a days NBP gives a vary low amount to customer because in Pakistan there is instability and day by day the investor go out from Pakistan because of in security financial crises is also big cause of it so the loan ratio is vary low down day by day with the passage of time.

5th Remittance Department In my internship program and also last week of my internship I also worked in Remittance department in one week .I observed or learned that main purpose of Remittance department is to move money from one place to another place. The remittance department transfers the money from domestic to international level. According to my learning there are two categories of remittance department 1st one is domestic or local remittance department and the 2nd one is foreign remittance department.

In local remittance the transfer money with in national or domestic boundaries and in foreign transfer money out side from national or international boundaries In my internship program the manager told me the main functions of Remittance Department these main or important functions takes places in the following ways I observed these are Closing and scrolling of government collections, issuing of payment order, issuing of demand draft, issuing of call deposit, issuing of Mail transfer and issuing of call deposit. When I work in this department I also observed the important particulars of demand draft filled, Name of the branch on which draft is drawn, Address of the applicant, signature of the applicant, exchange rates of the bank, Total amount in figure and also in words, name of the person who receive the money. Under the supervision manager I fill some demand draft that gives me some useful information about this department and I also want to get more and more information about this department and manager help me a lot. In NBP remittance takes places in the following ways. These ways are given below. 1st Telegraphic / Mail Transfers and its easy and fastest way and 2nd one is Demand Draft / Pay Orders Bank is responsible for remittance from one bank to another bank in case This is my last week on internship in national bank of Pakistan and word in remittance department I work hard also cooperative staff and manager really help me for this am thankful to all management and staff of National Bank of Pakistan F-10 branch and also thankful fro bank branch manager Miss Asia Aslam she help me lot in my all Internship

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:14pm Ratio Analysis

a) Liquidity Ratios Liquidity ratios measure a firms ability to meet its current obligations. These include: Current Ratio Acid Test Ratio

 Working capital

Name of the ratio

Current ratio

FORMULLA OF CURRENT RATIO The formula of current ratio is given below With the help of formula we calculate or find current ratio

Current Ratio = Current Assets / Current Liabilities

It means we add all current assets after add all current assets we add all current liabilities and than divide current ratio with current liabilities As we shown in given below

Show in table YEARS Current assets Current liabilities Current Ratio 2008 584,977,140 682,905,461 0.86 : 1 2009 645,064,165 725,293,720 0.89 : 1 2010 693,463,980 867,626,367 0.80 : 1

Working:

Which short term advances and investments?

Only fixed deposits will not be considered here

Held for trading and available for sale will be considered as current Current asset = Cash and balances with treasury banks + Balances with other banks + Lending to financial institution-net + short term Investment + Short term Advances + Other asset (Only Short Term) After adding all current assets according to given format the current assets of 2008 = 584,977,140 and 2009 = 645,064,165 and 2010 = 693,463,980 Current liability = Bills payable + Short Term Borrowing + Short Term Deposit and other account + short term liabilities against assets subjects to finance lease + other liability(Only short term) After adding all current Liabilities according to given format the Current Liabilities of 2008 = 682,905,461 and 2009 = 725,293,720 and 2010 = 867,626,367 Finally divide current assets with current liabilities answer is current ratio

Graphical Presentation of Current ratio

Interpretation The current ratio shows in 2008 the current ratio of national bank of Pakistan is 0.85 it means the current assets increases not much as compare to current liabilities and in 2009 shows the incrasing trends as compare to 2008 the current ratio of 2009 is 0.88 but again in 2010 it shows 0.79 that is much less as compared to 2008 and 2009. Name of the ratio Acid Test Ratio

With the help of formula we calculate or find Acid Test Ratio Formula is given below

Acid Test Ratio =

More liquid Assets/current liabilities

It means more liquid Assets / Current liabilities Show in table

YEARS More liquid Assets Current Liabilities Acid test Ratio

2008 582,255,871 682,905,461 0.85 :1

2009 630,040,628 725,293,720 0.87 :1

2010 691,160,473 867,626,367 0.80 :1

Working:

More liquid Assets = Cash and balances with treasury banks + Balances with other banks + Lending to financial institution-net + short term Investment+short term Advances + Other asset(short term)-advance(deposits, rent and other prepayments).

Current liability = Bills payable + Short term Borrowing + Short term Deposit and other account+short term liabilitiesagainst assets subjects to finance lease + other liability(short term) Graphical Presentation of Acid Test Ratio

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:15pm Interpretation: As we see the more liquid Assets are less than current liabilities in all three years 2008, 2009 and 2010 but in year. As we see in graph the Acid Test Ratio of 2009 is higher as compare to 2008 and 2010 and we calculate Acid Test Ratio find all by subtract all prepaid expenses from current assets to find it.

Name of the ratio

 Working capital To find out working capital ratio we use the following formula that is given below With the help of formula we calculate or find Working Capital Formula: Working Capital ratio = Current Assets - Current Liability Show in table

Make correctiosn as instructed above YEARS Current assets Current liabilities Working capital 2008 584,977,140 682,905,461 -97,928,321 2009 645,064,165 725,293,720 -80,229,555 2010 693,463,983 867,626,367 -174,162,384

Working Current Asset = Cash and balances with treasury banks + Balances with other banks + Lending to financial institution-net + Short term Investment + short term Advances + Other asset(short term) Current liability = Bills payable+ Short term Borrowing + Short term Deposit and other account + Short term liabilities against assets subjects to finance lease + other liability(Short term) Graphical Presentation of Working capital Working: Current asset = Cash and balances with treasury banks + Balances with other banks + Lending to financial institution-net + short term Investment + Short term Advances + Other asset(Short term) Current liability = Bills payable + Short term Borrowing + Short term Deposit and other account + Short term liabilities against Assets subjects to finance lease + Other liability(Short term) Interpretation:

We see in all three years 2008, 2009 and 2010 this can show the negative trend which is the bad sign for the company. It due to the increasing of current liabilities or the excess of liabilities over current assets. In 2010 negative sigh in to much high as compare to 2008 and 2009 so its vary bad for company.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:15pm Leverage Ratios Leverage ratios measure the degree of protection of suppliers of long term funds. These include: Times Interest Earned Debt Ratio Debt / Equity Ratio Debt to Tangible Net worth Ratio Total Capitalization Ratio Name of the ratio Times Interest Earned

To find out Times Interest Earned we use the following formula that is given below With the help of formula we calculate or find Times Interest Earned Formula: Times Interest Earned: EBIT / Interest Expenses

EBIT = Profit before taxation + Markup Interest Expenses / Interest Expenses

Show in table Years EBIT Interest expenses Total interest earned EBIT/Interest expenses 2008 46,885,766 23,884,768 1.96 Times 2009 61,789,822 40,489,649 1.52 Times 2010 69,665,595 45,250,476 1.53 Times

Working: Profit before Taxation: Mark up income Markup expencess= Gross profit Gross profit - (Provision for advances + Provision for the value of Investment + Provision against off balance sheet obligations + Bad debts written off) = Net mark-up interest income Net mark-up interest income+ Fee commission & brokerage income+ Dividend income +Exchange income+ + gain on sale of securities+ Other income = Total non mark up interest income Total non markup interest income- Administrative expense-Other provisions- Other charges = Profit before tax Interest expenses: Interest expenses given in profit and loss account on 2nd head as mark up return interest expense. Graphical Presentation of Times Interest Earned

Interpretation: As we see in table the Time interest ratio is decreasing over the time. In 2008 the time interest ratio is 1.96 but in 2008 its decrease it with 1.52 Time interest can also show the decreasing trend in coming year and than increasing trend in next year like In 2009 it little increase 1.53 as compare to 2009.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:15pm Name of the ratio Debt Ratio Formula: Debt Ratio = Total liabilities / Total Assets Its simple calculate total liabilities of all year than calculate total assets of all year and than total liabilities divide by total assets than we find debt ratio Show in table Year Total liabilities Total Assets Debt Ratio 2008 715,299,108 817,758,326 0.875 Times 2009 825,676,384 944,582,762 0.874 Times 2010 906,528,852 1035,024,680 0.876 Times

Working Total Debts = Bills payable + Borrowing + Deposit and other accounts + Sub-ordinated loans +Liabilities against assets subject to finance lease + Deferd tax liability + Other liability Total Assets: Cash and balances with treasury banks + Balances with other banks + Lending to Financial Institution + Investment + Advances + Operating fixed asset + Defferd tax asset + other assets Graphical Presentation of Debt Ratio

Interpretation: As we see in table the debt ratio is not much increase or decrease it all same in all three years. Here company have more assets then debt because debt ratio of greater than 1 indicates that a company has more debt than assets; while, a debt ratio of less than 1 indicates that a company has more assets than debt.

Name of the ratio Debt / Equity Ratio Formula: Debt to Equity Ratio = Total liabilities (Debt) / Shareholder equity

Show in table Year Total Liabilities Shareholder Equity Debt to Equity Ratio 2008 715,299,108 81,497,458 8.78 times 2009 25,676,384 94,265,853 8.76 times 2010 906,528,852 103,880,048 8.73 times

Working: Total debts = Bill payable + Borrowings + deposits and other Account + Sub-ordinate Loans Liabilities against Assets subjects to finance lease+ Deferred tax Liabilities + Other liabilities Share holder equity = Share Capital + Reserves + unappropriate profit + Surplus on revaluation of fixed assets.

Graphical Presentation of Debt / Equity Ratio

Interpretation: As we see in table the ratio of 2008 shows 6.98 which is decreased in 2009 by 6.94 but in 2010 its again increase by 7.05. Its show that the company is finances its assets and heavily relies on debt finances.

Name of ratio: Debt to Tangible Net worth Ratio: Formula: Total liability/(Net worth- Net intangible asset) Show in table Year Total Liabilities Tangible net worth Debt to Tangible Worth Ratio 2008 715,299,108 102,453,293 6.98 Times 2009 825,676,384 118,888,848 6.94 Times 2010 906,528,852 128,487,598 7.05 Times

Working: Total Debts = Bill payable + Borrowings + Deposits and other Account + Sub-ordinate Loans Liabilities against Assets subjects to finance lease + Deferred tax Liabilities + Other liabilities Net Worth = Total Asset - Total liability Intangible asset = (Mention in notes of balance sheet 11.3) Intangible asset of 2008 is 5,925, Intangible asset of 2009 = 17,530 and Intangible asset of 2010 = 8,230 Graphical Presentation of Debt to Tangible Net worth Ratio:

Interpretation: The overall show the increasing trend of the company in 2008 it shows the 6.98 and there 2009 it decrease by 6.94 and again in 2010 it increase up to 7.05. So in year 2010 its greater as compare to 2008 and 2009 and its less in 2009 as compare to 2008 and 2010.

Name of ratio

Total Capitalization Ratio:

Formula: Long term debt / Long term debt + Share holder equity

Show in table Year Long term debt Share holder equity + long term debt Capitalization Ratio 2008 32,393,647 113,760,649 0.28 Times 2009 100,382,664 194,524,583 0.51 Times 2010 38,902,486 142,664,796 0.27 Times

Working:

Long term Debts = Long term borrowing + long term deposits and other accounts + Subordinated loans + Liabilities against assets subject to finance lease +Deferd tax liability + Other liabilities(long term) Share holder equity+ long term debts = Share capital + Resevers + +unappropriated profit + surplus on revaluation of asset + Long term borrowing + long term deposits and other accounts + Sub-ordinated loans + Liabilities against assets subject to finance lease + Defferd tax liability + other liabilities(long term)

Graphical Presentation of Total Capitalization Ratio

Interpretation: Total Capitalization Ratio is high in 2009 as compare to 2008 and 2010 the overall trend of debt contribution towards financing shows the increasing trend of the company. In 2008 it

shows the 2.5 and there is further increase 2009 & 2010 so the overall trend of debt contribution towards financing is high.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:16pm Profitability Ratios Profitability ratios measure the earning ability of a firm. These include: Net Profit Margin Return on Assets DuPont Return on Assets Operating Income Margin Return on Operating Assets Return on Total Equity Gross Profit Margin Name of ratio Net Profit Margin

Formula: Net Profit Margin = Net Profit /Net Sales*100 Show in table Year Net Profit a Net Sales b 2008 15,458,590 60,942,798 2009 17,561,846 77,947,697 2010 17,563,214 88,472,134

Net Profit Margin ratio: a/b

25.4%

22.5%

19.9%

Working:

Net profit is the profit after tax which is obtained as: Mark up revenue markup expenses = Gross profit

Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark-up income Net mark-up income + Fee & commission + Dividend income + Exchange income + other income + Gain on sale of securities = Total income

Total income - Administrative expense - Other provisions - Other charges + Share of income = Profit before tax Profit before tax- tax = Profit after tax And net sale = Mark up revenue

Graphical Presentation of Net Profit Margin

Interpretation: The table shows that Net Profit margin is showing decreasing trend in 2009, which again decreases in 2010 as compare to 2008 so NBP has not significant improved net profit margin in the this years in coming years after 2008.

Name of ratio Return on Assets Formula: Return on asset: (EBIT / Total Assets)*100 Show in table Year EBIT a Total Assets b Return on Asset Ratio a/b 2008 46,885,766 817,758,326 5.73% 2009 61,789,822 944,582,762 6.54% 2010 69,665,595 1,035,024,680 6.73%

Working: Revenue Markup Expenses = Gross Profit Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark- up income Net mark-up income + Fee & commission + Dividend income + Exchange income + other income + gain on sale of securities = Total income Total income - Administrative expense - Other provisions - Other charges + Share of income = Profit before tax EBIT = Profit before Taxation + Interest expenses Total Assets: Cash and balances with treasury banks + Balances with other banks + lending to financial institution + Investment+ Advances + Other asset + Operating fixed Asset + Defferd tax asset-net. Graphical Presentation of Return on Assets

Interpretation: The table shows that the return on assets of 2008 is greater as compare to 2009 and 2010 so the ratio analysis explains that Return on Assets is growing in the year 2008, which is 2.81%. But after this it increases from previous level and then it reached at 2.26% in financial year 2009, again it decrease to 2.36% in year 2010.

Name of ratio DuPont Return on Assets Formula: DuPont Return on Assets = Net Income/Net sales * Net Sales/ total Asset

Show in table Year Net Income/ Net Sales x Net Sales/ Total Asset y DuPont Return On Assets x*y 2008 15,458,590/60,942,798 =0.254 2009 2010 17,561,846/77,947,697 17,563,214/88,472,134 =0.225 =0.199

60,942,798/817,758,326= 77,947,697/944,582,762 88,472,134/1,035,024,680 0.075 =0.083 =0.085 1.91% 1.87% 1.69%

Working: Net Income/Net Sale: Net Income: Net profit or net income is the profit after tax which is obtained as mark up revenue markup expenses = Gross profit Gross profit- (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark-up income Net mark-up income + Fee & commission + Dividend income + Exchange income + other income + gain on sale of securities = Total Income Total income - Administrative expense - Other provisions - Other charges + share of income = Profit before tax Profit before tax - Tax = Profit after tax or net income

And net sale = Mark up Revenue Net Sale/Total Asset: Total Assets: Cash and balances with treasury banks + Balances with other banks + lending to financial institution + Investment+ Advances + Other asset + Operating fixed asset + Defferd tax asset-net

Graphical Presentation of DuPont Return on Assets

Interpretation: As we see in graph and table the DuPont Return on Assets ratio decreases in 2008 and 2010 as compare to 2009 it means in year 2009 the DuPont Return on Assets ratio is high as compare to 2008 and 2010 it happens due to increase in mark-up revenue.

Name of ratio Operating Income Margin Formula: Operating income margin = (EBIT/ Net Sales)*100

Show in table

Years EBIT a Net Sales b Operating income margin a/b

2008 46,885,766 60,942,798

2009 61,789,822 77,947,697

2010 69,665,595 88,472,134

76.93%

79.27%

78.74%

Working:

Revenue Markup Expenses = Gross profit Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark-up income Net mark-up income + Fee & commission + Dividend income + Exchange income + other income + Gain on sale of Securities = Total income Total Income - Administrative expense - Other provisions - Other charges + share of income= Profit before tax EBIT = Profit before Taxation + Interest expenses Net Sale= Mark up revenue

Graphical Presentation of Operating Income Margin

Interpretation: As we see in graph and table the Operating income margin is decreasing over the year 2008 and 2010 as compare to 2009 it happens due to increasing of sale more quickly than to operating profit. Name of ratio Return on Operating Assets Formula: Return on Operating Assets = (EBIT/ Operating Assets)*100

Show in table Years EBIT a 2008 46,885,766 2009 61,789,822 2010 69,665,595

Operating Assets b 560,836,308 Return on Operating 8.36% Assets (a/b)*100

635,805,667 9.72%

642,862,306 10.84%

Working:

Revenue Markup Expenses = Gross profit Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark-up income Net mark-up income + Fee & commission+ Dividend income + Exchange income + Other income + gain on sale of securities = Total income Total income- Administrative expense - Other provisions - Other charges + share of income = Profit before tax

EBIT = Profit before Taxation + Interest expenses

Operating Assets = Cash and balances with treasury banks + Lending to financial institutions + Advances net + Operating fixed assets

Graphical Presentation of Return on Operating Assets

Interpretation: As we see in table and graph the Return on operating asset is increasing every year so Return on operating asset ratio is moving towards low which indicates that the Company must give attention towards its usage of operational asset.

Name of ratio Return on Total Equity Formula: Return on Equity = (Net income/Shareholders equity)*100

Show in table Year 2008 2009 17,561,846 94,265,853 2010 17,563,214 103,880,048

Net income a 15,458,590 Shareholders equity 81,497,458 b Return on Equity a/b 18.97%

18.63%

16.91%

Working:

Net profit or net income is the profit after tax which is obtained as Mark up Revenue Markup Expenses = Gross profit Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark - up income Net mark - up Income + Fee & commission + Dividend income + Exchange income + other income + Gain on sale of Securities = Total Income Total income - Administrative expense - Other provisions - Other charges + share of income = Profit before tax Profit before tax- tax= Profit after tax or Net income Shareholders equity =Share capital+ reserves+ unappropriated profit + surplus on revaluation of fixed assets. Source: Change in equity statement under the head 20.2

Graphical Presentation of Return on Equity

Interpretation: Return on Equity (ROE) tells us how much profit a company earned in comparison to the total amount of shareholders equity. In 2008 it was 18.99; it slightly decreases in 2009 by 18.65% and again decreases in 2010 by 16.93%. Name of ratio Gross Profit Margin Formula: GROSS PROFIT MARGIN = (Gross Profit / Net Sales)*100 Show in table Year Gross Profit a Net Sales b Gross Profit Margin Ratio (a/b)*100 2008 37,058, 030 60,942,798 60.81% 2009 37,458,048 77,947,697 48.06% 2010 43,221,658 88,472,134 48.85%

Working:

Gross profit = Mark up revenue - Mark up expenses Net Sale = Mark up Revenue

Graphical Presentation of Gross Profit Margin Ratio

Interpretation:

In 2008 the profit margin ratio is 60.381 abut in 2009 and 2010 it shows decreasing trend. It is due to increasing of mark up expenses more quickly than mark up revenue

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:17pm Activity Ratios Activity ratios measure a firm's ability to convert different accounts within their balance sheets into cash or sales. These include: Total Assets Turnover Fixed Assets Turnover NAME OF RATIO Total Assets Turnover

FORMULA: TOTAL ASSET TURNOVER RATIO = Net sales / Total Assets

Show in table YEAR Net sales a Total Assets b Total Assets Turnover a/ b 2008 60,942,798 817,758,326 0.0745 Times 2009 77,947,697 944,582,762 0.0825 Times 2010 88,472,134 1,035,024,680 0.0855 Times

Working:

Net sale = Mark up Revenue / Interest Earn / Return

Total Assets: Cash and balances with treasury banks + Balances with other banks + lending to financial institution + Investment + Advances + Other asset + operating fixed asset + Defferd tax asset-net

Graphical Presentation of Total Assets Turnover

Interpretation: Total Assets Turnover ratio of all three years shows the increasing trend in 2008, 2009 and 2010. The trend shows that bank is using its assets well because it is contributing more towards sales. As we see in year 2010 the Total Assets Turnover is little bit increase as compare to other two years.

Name of ratio

Fixed Assets Turnover

Formula: Fixed Assets turnover = Net Sales / Fixed Assets Show in table Year Net sales a Fixed assets b Fixed Assets turnover a/ b 2008 60,942,798 24,217,655 2.52 Times 2009 77,947,697 25,147,192 3.10 Times 2010 88,472,134 341,560,700 3.29 Times

Working:

Fixed Asset = Operating Fixed Assets Net Sale = Mark up revenue / Return / Interest Earn Graphical Presentation of Fixed Assets turnover

Interpretation: This Fixed Assets turnover ratio shows increasing trend in every year like in 2008 Fixed Assets turnover is 2.52 times and its increases in 2009 up to 3.10 times and it also and more increase as compare to 2008 and 2009 up to 3.29 times. Fixed assets usage is satisfactory because these are contributing more towards sales.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:20pm Market Ratios Market ratios are commonly used by the investors to assess the performance of a business as an investment and also the cost of issuing stock. These include: Dividend per share Earning per Share Price/Earning Ratio

Name of ratio

Dividend per share

Formula: Dividend per share = Dividend paid to share holder / Average common share outstanding Show in table Year Dividend paid to shareholder Avg. common share outstanding Dividend per share 2008 6,104,894 896975 6.81 Rs. 2009 5,820,338 1076370 5.41 Rs. 2010 8,060,510 1345463 5.991 Rs.

Working

Avg. common share outstanding= Share capital amount / Par value of share Year 2008 Avg. common share =8,969,751/10 outstanding =896975.1 896975 2009 =10,763,702/10 2010 =13,454,628/10

=1076370.2 1076370 =1345462.8 1345463

Graphical Presentation of Dividend per share

Interpretation:

The given graph and table shows that in year 2008 the Dividend per share is 6.81 but it decrease in 2009 and again increase in 2010. Dividend per share ratio informs about the price of shares in the market also tells the value of the banks shares price. This ratio for the bank is rising 2010 as compared to the 2008, 2009.

Name of ratio

Earning per Share

Formula: Earning per Share = Profit Available to shareholders or Net income after tax/ No of shares outstanding

Show in table Year 2008 Net income after tax 15458590 No of shares 896975 outstanding 2009 17561846 1076370 2010 17563214 1345463

Earning per Share

17.23 Rs.

16.32 Rs.

13.05 Rs.

Working

Net Income: Net profit or net income is the profit after tax which is obtained as mark up revenue markup expenses = Gross profit

Gross profit - (Provision for advances + Provision for investment + Provision lending to financial institution + Bad debts written off) = Net mark-up income

Net mark-up Income + Fee & commission + Dividend income + Exchange income + Other income+ gain on sale of securities = total income

Total income - Administrative expense - Other provisions - Other charges + share of income=profit before tax

Profit before tax- tax = Profit after tax or net income No. of share Outstanding = Share capital amount / Par value of share

Graphical Presentation of Earning per Share

Interpretation

Earnings per share serve as an indicator of a company's profitability. The reason of increase earning per share is to increase the net income of the company and the reason of fallen earning per share is that net income is decreasing and the outstanding share of the company. After 2008 its decreases in 2009 and 2010

Name of ratio

Price/Earning Ratio

Formula: Price Earning Ratio = Current market Share price / Earning per Share

Show in table Year Market value per share Earning per Shares Price Earning Ratio 2008 50.32 2009 74.37 2010 76.82

17.23% 2.9205 Rs.

16.32% 4.5570 Rs.

13.05% 5.8866 Rs.

Working

Source: Current market Share price from http://www.kse.com.pk/ EPS is available in balance sheet.

Graphical Presentation of Earning per Share

Interpretation

The Price Earning ratio is greater in 2010 as compare to 2009 and 2008. Price Earning ratio doesn't tell us the whole story by itself. It is usually useful to compare the Price Earning ratios of one company to other companies in the same industry

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:21pm

Future Prospects of the Organization

Am doing internship in national bank of Pakistan and observed during internship and see detail in NBP websites and internet that the future of National Bank of Pakistan is vary bright and the expansion of NBP is increasing day by day and during the calculation of ratio I observed that the earning of NBP is high as compare to base or previous years. The most three ratios to check the future prospects of the entity and all three ratios shows increase every year these there ratios are current asset ratio, Working capital, Gross Profit Ratio. But NBP is gearing challenges faced by the domestic banking industry due to innovation and advancement in international banking. The future of NBP is bright and NBP is maintaining its position to set higher standard of achievement because when I calculate the ratios all represent increasing moment and all are positive it means the bank has capability to pay off and its debt is also superb.The actions taken by current management provide a great opportunity for NBP for making it future prosper and can make NBP not less than any modern commercialize bank in Pakistan.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:22pm Conclusion

I am doing my internship program in the largest Government bank of Pakistan its National Bank of Pakistan. NBP is one of the leading banks in banking sector. During my stay of 6 weeks at NBP its my 1st practical life experience, I learnt a lot of task, many professional skills. I also learned about how to deal with public. NBP has 1254 nationwide and almost 25 branches operating in other foreign countries including USA, China, France, Hong Kong, Azerbaijan, Bangladesh, and Hong Kong. National bank of Pakistan is one of the biggest online banks in Pakistan. NBP is a government bank that why it works according to rules set by the state bank of Pakistan. NBP is also involved in commercial banking. It is a part of State Bank of Pakistan and it is its major strength.

National Bank of Pakistan establish in the National Bank of Pakistan ordinance 1949. Am doing my internship in NBP if I say the future of NBP is bright it will not be wrong.

I observed during my training in NBP the paper work of NBP is awesome but now a day of technology the technology is an impact to survive in the market and to be in competition. Every organization has some weakness and during my internship in NBP F-10 branch Islamabad I also observed it covers all its weakness and take opportunities at right time surely it can be in the way of progress insh Allah and will contribute in overall progress of NBP at national level as well as the international level.

When I calculate the Ratio analysis of National Bank of Pakistan it shows that NBP is a most rising bank with highest return on capital, largest market share amongst all Banks in Pakistan. NBP carries highest cost to Income ratio as compare to all other commercial banks. But still thinks that there is need for development to overcome on weaknesses in order to keep its position as an excellent in banking field. Keeping in view the financial ratios it is observed that Net assets of the NBP are increasing day by day. The net profit is also increasing which may attract the investors. The profit of national bank of Pakistan is also increasing day by day that attract the customers and investors. This ratio of NBP is increasing which shows large numbers of the assets are financed by the debts which is not good. Positive working capital ratio shows that its assets are more than liabilities, so the bank is capable to pay its liabilities. Ratio shows that NBP is utilizing its Assets efficiently. NBP should fully concentrate to improve its performance and standards to meet the challenges by the economy as well as by the competitors and for this purpose it needs to overcome the problems and improve the quality of services specially in advance section, that will prevent it from huge losses.

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:22pm Recommendations for Improvement n Improve its EPS because its shows company profitability.

n Increase sale and reduce expenses to earn better profit margin

n Improve liquidity position by increasing its sale

n Increase the current assets as compared to current liabilities

n Proper training of staff members

n Prevailing friendly environment

n Complaint counter should be available

n Working capital should be positive .

Permalink Reply by M.Tariq Malik on October 12, 2011 at 6:22pm Reference & Sources used

Website of National Bank of Pakistan www.nbp.com.pk Annual Report of National Bank of Pakistan Newspaper Dawn Newspaper The Nation Newspaper Business Recorder Miss Asia Aslam (Branch Manager)

Auditors report of National Bank of Pakistan Searching from different websites from Internet

Internship Report on National Bank of Pakistan(nbp) Sindh 1

INTERNSHIP REPORT

NATIONAL BANK OF PAKISTAN

CIVIL LINES BRANCH GUJRANWALA PRESENTED BY: HAFIZ MUHAMMAD IRFAN FA08-MBA-036 PRESENTED TO:

MR. ABID SHARIF (LECTURER) COMSATS Institute of Information Technology LahoreARTICULARS PAGE NO.
Executive Summary 04 President Message 05 History And Background 05 Vision 07 Mission 07 Core Values 07 Goals 07 Corporate Banking 09 Board of Directors 09 Senior Management 10 NBP Domestic Branches 11 NBP Regional Branches 12 NBP Overseas Branches 12 NBP 2007 Initiative 13 Retail Banking 13 Commercial Banking 14 SME 14 Human Resource 15 Credit And Risk Management 15

Special Assets Management Operations 15 Information Technology 16 Agriculture 16 Deposits 16 International Operations 16 Islamic Banking 16 Credit Rating 16 Market Recognition 17 Social Responsibility 17 Risk Management Framework 19 Awards And Achievements 20 Products Of National Bank Of Pakistan 22 Premium Amdani 22 Monthly Income Scheme 22 NBP Karobar Mera Apna Karobar 23 NBP Saibaan 23 NBP Advance Salary 23 NBP Cash Card 23 NBP Investor Advantage 23 NBP Cash And Gold 25 NBP Student Loan Scheme 25 NBP's Internet Based Home Remittances Service 27

NBP Islamic Banking 28 NBP Corporate Treasury 29 International Banking Services 31 Trade in Finance other Business Loans 33 Corporate Finance 34 Civil Lines Branch Gujranwala 35 Department Of Government Section 35 Types Of Accounts 37 SWOT Analysis 42 Practical Experience 43 Clearing Section 43 Accounts Department 50 Foreign Exchange Section 52 3 Billing Section Department 54 Credit Department 55 Human Resource Department ( Job Duties List) 60 Categories of Branches 72 Responsibilities 72 Responsibilities of Branch Manager 72 Responsibilities of Operation Manager 73 Responsibilities of Credit Administration Officer 73

Responsibilities of Compliance Officer 74 Responsibilities of Relationship Officer 75 Responsibilities of Relationship Manager 76 Responsibilities of Credit Officer 76 Responsibilities of Customer Facilitation Officer 76 Fraud Prevention, Detection And Reporting 77 Banker Customer Relationship 78 6 Years Performance at a Glance 80 Notice of 60th Annual General Meeting 81 Problems Found During The Internship 83 Suggestions & Recommendations 84 Tips to deal with customer 84 Glossary 89 Bibliography 91 4

EXECUTIVE SUMMARY
National Bank of Pakistan is the largest commercial bank operating in Pakistan . Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organisation into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as

the 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. In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar,

NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold. It has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature . NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan . It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's

branches keep a track of the remittance received from abroad till its final receipt. This report is based on internship in National Bank of Pakistan Civil Lines Branch Gujranwala. It is a famous and reputed bank of Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. This report is based on the activities which are performed in this bank. This report contains functions of Bills and Clearing department, Account Opening, Government section, Credit Department, SWOT analysis, bank tariffs and exchange rates of National Bank of Pakistan. There are also stated the activities which I performed during my internship in the branch. There are also mentioned the way of investment, rates of investment, all types of financing and loans facilities the National Bank of Pakistan provides. The problems in this branch are also discussed. 5

President Message
It gives me great pleasure to present on behalf of the Board of Directors, annual accounts of the bank for the year ended December 31, 2007 . NBP continued its journey of success based on our strategy of serving

clients better. a company agile enough to take advantage of its unique domestic and international footprint, capitalizing on the largest balance sheet and customer base in Pakistan with high cross sell potential. Our standalone AAA rating (the highest in the industry), our ROE, which is amongst the highest in the Asian Banking industry, and our comfortable capital adequacy ratios, position us well in front of our competitors for future growth. Year 2007 has been yet an outstanding year with the bank recording the highest profit in its history. Our wide range of product offering, large branch network and committed workforce are some of our fundamental strengths that enabled us to achieve exceptional results in a very competitive market. The pre-tax profit increased to Rs. 28.06 billion, an increase of 6.6% over last year. Earning per share jumped by over 11.6% from Rs. 20.88 in 2006 to Rs. 23.34 in 2007. Pre- tax return on equity stood at 45.9%, whereas pre-tax return on assets stands at 4.1% and cost to income ratio of 0.30 remained one of the highest in the sector. These results were possible despite the fact that NBP had to make additional provision of over Rs.3 billion

as a result of withdrawal of Forced Sales Value (FSV).This year NBP also availed the offer by Government of Pakistan to redeem up to 10% of its holding in NIT units held by the bank under Letter of Comfort (LoC) arrangement, this sell off resulted in a Capital gain of Rs. 1.8 billion. Increase in pre-tax profit was achieved through strong growth in core banking income. Net Interest income increased by Rs. 3.5 billion (11.5%) due to better yields and volume driven growth spurred by increase in consumer loan portfolio. Dividend income and Capital Gains also made a healthy contribution as it increased by Rs. 371 million and Rs. 1,145 million over 2006 respectively mainly owing to higher dividends from NIT Units as well as Capital gains recorded on sell of 10% NIT Units. Advances increased by Rs. 25 billion due to impressive contribution by all business units. Deposits increased by a healthy Rs. 90 billion or 18% over last year. The bank's NPL provision coverage ratio also stands at an impressive 84%.

HISTORY AND BACKGROUND ROLE OF BANKS IN NATIONS LIFE

Banks plays very important role in the economic life of the nation. The growth of the economy is closely related to the soundness of its banking system. Although banks create

no new wealth but they borrow, exchange and consume wealth. In this way, they become very effective partners in the process of economic development. Modern banks are very useful for the utilization of the resources of the country. National Bank of Pakistan (the Bank) was established on November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian Rupee in 1949. Initially the Bank was established with the objective to extend credit to the agriculture sector. The normal procedure of establishing a banking company under the Companies Law was set aside and the Bank was established through the promulgation of an Ordinance due to the crisis situation that had developed with regard to financing of jute trade. The Bank commenced its operations from November 20, 1949 at six 6 important jute centers in the then East Pakistan and directed its resources in financing of jute crop. The Banks Karachi and Lahore offices were subsequently opened in December 1949. National Bank of Pakistan is the largest commercial bank operating in Pakistan . Its

balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organization into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the 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. In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient, and

customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold. It has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature . NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan . It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send

their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and developing the human resources. National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing , Tashkent , Chicago and Toronto . It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management

Company Ltd, and CJSC Bank, Almaty , Kazakhstan . The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore). The Bank's financial performance has been remarkable. In 2006, total assets are estimated at Rs635 billion, while deposits have grown to nearly Rs502 billion. Pre-tax profit rose to Rs26 billion. Earnings per share have jumped to Rs24.01 in 2006. The increase in profit was achieved through strong growth in core banking income. Interest income increased by Rs10 billion through growth in the loan portfolio as well as increase in spreads. 7 Advances increased by Rs48 billion to Rs316 billion. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration. It ranges from providing credit to the un-banked market segment under NBP Karobar, to small and medium enterprises, to agricultural loans, to large corporate customers. National Bank has earned recognition and numerous awards internationally. It has been the recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine, the Best Foreign Exchange Bank Pakistan for 2004,

2005, 2006 and 2007, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kissan Time Awards 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been presented a Recognition Award 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards.

Vision
To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.

Mission
NBP will aspire to the values that make NBP truly the Nations Bank, by:

Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices Maximizing stakeholders value Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate

Core values Highest standards of Integrity Institutionalizing team work and performance culture Excellence in service Advancement of skills for tomorrows challenges Awareness of social and community responsibility Value creation for all stakeholder Goals
To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products. 8

Corporate banking NBP further consolidated its position as one of the top players in corporate and investment banking of the country in 2007 and has built a strong customer relationship with the premier Corporate clients. South Region
1) Corporate Branch Karachi Chapal Plaza

Hasrat Mohani Road Karachi . Tel : 021- 9217108-109 Fax: 021- 9217113

Northern Region
Corporate Branch Islamabad Super Market Islamabad . Tel : 051- 9206696 Fax: 051- 9203923

Corporate Branches-Lahore
Main Branch Lahore Shahrahe- Quiad-e- Azam Rd, Lahore Tel : 042/9211686-9211674 Fax : 9211286 Wapda House Branch Shahrae Quiade Azam Road Lahore Tel : 042/9202490 - 9202492 Fax: 9202491 Model Branch Gulberg Main Boulevard Gulberg, Lahore Tel : 042/5751104-5, 5752215

Fax: 5751371 ACP Model Corporate Branch ACP Corporate Branch Shadman Jail Rd Lhr Tel : 042/9203149-50 , 9203167 Fax: 9203168 -7571030 9

BOARD OF DIRECTORS
Syed Ali Raza Chairman & President
Mr. S. Ali Raza is the Chairman, President and Chief Executive Officer of National Bank of Pakistan, the largest Commercial Bank of the country. Mr. Raza is a graduate of the London School of Economics and M.Sc. in Adm. Sciences. Before joining the National Bank of Pakistan in July 2000 as the Bank's President, he held a key management position as Regional Manager, Pakistan, Middle East and North Africa at the Bank of America (BOA). --------------------------------------------------------------------------------

Mr. Sikandar Hayat Jamali Director

Mr. Sikandar Hayat Jamali is a retired Government Servant. He did his Senior

Cambridge from St. Francis Grammar School Quetta, and Higher Senior Cambridge from the Aitchison College Lahore and graduated from Government College Lahore. He has done an M.A. in History (Gold Medalist) from the Punjab University and M.A. in Public Policy and Administration from the University of Wisconsin (USA). He is also an M.A. in Area Studies (Middle East and North Africa) from the University of London. --------------------------------------------------------------------------------

Mian Kausar Hameed Director

Mian Kausar Hameed, is an MBA from IBA, Karachi. His experience includes Manufacturing, Retailing, Marketing, Management, HR, Training and Teaching at various levels in various organizations for 38 years after his education. He has worked with reputed national and international organizations as Regional Manager, Managing Director/CEO, Management Consultant, Resident Director, Member and Chief Operating Officer. He addressed international conferences on Sugar and Ethanol and was speaker in workshops and seminars on CDM and Carbon Finance. He has written several papers on CDM, Ethanol, Agriculture in Pakistan, Trends in Management

and HR Development.

Mr. Ibrar A. Mumtaz Director

Mr. Ibrar A. Mumtaz is a Businessman. He was born in 1947 and comes from a prominent business family of Lahore. He was educated at Aitchison College, Lahore, F.C. College, Lahore and the Institute of Business Administration, (I.B.A) University of Karachi. After completing his education he joined his family business in 1968, namely the Fazal Dins Group of Companies comprising of Fazal Din & Sons (Pvt) Ltd., Lahore Chemical & Pharmaceutical Works (Pvt) Ltd., Medipharm (Pvt) Ltd., Fazal Dins Pharma Plus (Pvt) Ltd. and Medequips. --------------------------------------------------------------------------------

Mr. Tariq Kirmani Director

Soon after completing his Masters in Business Administration (MBA) Mr. Kirmani embarked upon a rewarding career, starting with a multinational Oil Company (Caltex later Chevron Pakistan) in 1969 and worked for seven years in the United States of America, United Arab Emirates and Australia

in different senior management positions in Marketing Operations and Finance. In 1991, Mr. Kirmani became the first Pakistani to be elected as a Company Director of the mentioned multi-national company. 10

Mr. Mohammad Ayub Khan Tarin Director

Mr. Mohammad Ayub Khan Tarin is a government official. He is an MBA from Western Michigan University, USA. At present, he is working as Additional Finance Secretary (Budget), Ministry of Finance. He possesses 31 years experience in the fields of Financial Management, Budgeting, Accounting, Auditing including Performance Auditing & Public Administration. --------------------------------------------------------------------------------

Mrs. Haniya Shahid Naseem Director

Mrs. Haniya Shahid Naseem is an MBA with more than fifteen years experience of working in the education, social, industrial and agriculture sectors of Pakistan. She has served for 5 years on the Board of a textile company, having a turnover of more than one Billion Rupees. Presently she is actively

involved in the administration of Pakistan Public School Multan. She is a progressive agriculturist and actively participates in the management of her familys agricultural farms. She is a member of the Multan Chamber of Commerce and Industry, and is also on the guest faculty of IBA, Multan. --------------------------------------------------------------------------------

Mr. Ekhlaq Ahmed Secretary Board of Directors

Mr. Ekhlaq Ahmed, EVP is the Company Secretary of the Bank and also the Secretary of Credit & Operations Committees. He is M.A. (Economics) from Rajshahi University, Bangladesh (former East Pakistan). He is a Diplomaed Associate Institute of Bankers, Pakistan (DAIBP) and secured overall 1 st position in order of merit and won Muslim Commercial Bank Prize in the subject of Foreign Trade & Foreign Exchange. He is an Associate of Institute of Corporate Secretaries of Pakistan (ACIS). He is also a Certified Director on the panel of Pakistan Institute of Corporate Governance (PICG) since November, 2007. Mr. Ekhlaq Ahmed is the first senior executive of the Bank who

has achieved the status of Certified Director. --------------------------------------------------------------------------------

SENIOR MANAGEMENT
Qamar Hussain Chief Operating Officer , Credit Management Group Dr. Asif A. Brohi SEVP & Group Chief, Operations Group and Islamic Banking Group Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group Ziaullah Khan SEVP , Special Projects
Dr. Mirza Abrar Baig

SEVP & Group Chief, Human Resources Management & Administration Group Amer Siddiqui SEVP & Group Chief, Commercial & Retail Banking Group Shahid Anwar Khan SEVP & Group Chief, Overseas Banking

Group Muhammad Nusrat Vohra SEVP & Group Chief, Treasury Management Group Khalid Bin Shaheen SEVP & Group Chief, Remittances Imam Bakhsh Baloch SEVP & Group Chief, Audit & Inspection Group N. B. Soomro SEVP , Special Projects Agha Fidaullah EVP/Group Chief, Special Assets Management Group Ekhlaq Ahmed Nadeem A. Ilyas 11 EVP & Secretary Board of Directors EVP & PSO to President , Group Chief (A), Compliance Group Atif Hassan Khan Group Chief (A), Information Technology Group Aamir Sattar

SVP, Divisional Head, Financial Control Division Ali Hassan SVP-Head PMO-CBA / Chief Information Security Officer

NBP DOMESTIC BRANCHES SIND

1) Dadu/ Sanghar 2) Hyderabad 3) Jacobabad/ Shikarpur 4) Karachi 5) Larkana 6) Mirpurkhas/ Badin 7) Nawabshah/ N' Feroze 8) Sukkur/ Khairpur 9) Tharparkar

PUNJAB
1) Bahawalpur 2) D.G. Khan/ RYKhan 3) Faisalabad 4) Gujranwala 5) Sialkot/ Narowal

6) Islamabad 7) Jhang 8) Jhelum/ Gujrat/ Chakwal 9) Lahore 10) Multan/ Baha'nagar 11) Murree/ Attock/ Gilgit 12) Rawalpindi 13) Sahiwal 14) Sargodha/ Sheikhupura

NWFP
1) Abbottabad/ Mansehra 2) Bannu/ D.I. Khan 3) Kohat / Mingora 4) Mardan 5) Peshawar

BALUCHISTAN
1) All Branches 2) AZAD KISHMIR 3) Muzaffarabad 4) Mirpur 12

NBP REGIONAL OFFICES

1. Karachi (South) 2. Karachi (West) 3. Hyderabad 4. Larkana 5. Sukkur 6. Quetta 7. Gawadar 8. Lahore (Central) 9. Lahore (East) 10. Gujranwala 11. Sialkot 12. Faisalabad 13. Jhang 14. Sargodha 15. Multan 16. Bahawalpur 17. Dera Ghazi Khan 18. Sahiwal 19.Federal Capital Islamabad 20. Rawalpindi 21. Jhelum 22. Gujrat 23. Peshawar 24. Mardan 25. Dera Ismail Khan 26. Abbottabad 27. Muzaffarabad (A.K.) 28. Mirpur (A.K.) 29.Gilgit (sub-region)

NBP OVERSEAS BRANCHES America and Europe Region

1) USA 2) Canada 3) Germany 4) France

Far East Region

1) Hong Kong 2) Japan 3) South Korea 4) China

Middle East, Africa & South Asia Region

1) Bahrain 2) Egypt 3) Bangladesh 4) EPZ

Central Asian Republics

1) Afghanistan 2) Turkmenistan 3) Kyrgyz Republic 4) Kazakhstan 5) Uzbekistan 6) Azerbaijan Subsidiary Joint Venture Representative Off NBP Kazakhstan (Almaty) United National Bank (UK) Canada (Toronto) USA (Chicago) China (Beijing) Uzbekistan (Tashkent) 13

NBP 2007 INITATIVE Corporate Banking

The Corporate Banking Group achieved excellent results in 2007 with a number of landmark transactions in cement, energy, communication and fertilizer sectors. In addition to the funded income, our corporate and investment banking has substantially increased its fee base income this year by being the lead advisor in a number of transactions in the Corporate world of Pakistan . The challenges to corporate business in year 2007 were manifold including reduction in Private Credit Investment as a result of slowing down of economy as well as rising interest rates. The increasing pressure on the textile industry reduced the lending to this sector. In addition the bank's corporate loans yields also faced pressure as substitute form of funding sources are available in the market in form of Islamic financing, mutual funds, issuance of debt instruments like TFCs and Bonds and the Capital markets. Despite these threats and challenges at NBP, our corporate team not only increased the volume as well as the yield of the loans they also maintained a strong franchise with the leading Pakistani corporate so as to ensure that NBP not only maintains its market share

but is in a position to meet any challenges in future. NBP during the year also participated in a number of TFC issues and mutual funds subscriptions thereby increasing the overall yield on investment portfolio. NBP has the largest equity portfolio in the banking sector primarily due to 27% holding in NIT units, the largest mutual fund in Pakistan . During the year the bank redeemed 10% of its NIT holding covered under LoC, which resulted in capital gain of Rs. 1.8 billion.

1) Retail Banking
NBP Karobar under the President's ROZGAR Scheme recorded excellent growth after its full launched in April 2007. This was a unique product launched to tap into the un-banked and actually the so far un-bankable poor people of Pakistan targeted towards the unemployed youths aged between 18 to 45 years. This product not only serves the bank's commercial strategy but is also an effort towards poverty alleviation in the country. It is a unique Public Private Partnership with GOP paying 50% of the mark-up (the rest is paid by the customers), as well as providing free life and disability insurance to the NBP Karobar customers and sharing the losses with the bank. The portfolio at

year end was over Rs.2 billion. The target is almost 1.8 million customers in the next five years. There are exciting new incomes generating products in the pipeline to achieve the targets of NBP. The income generation targeted is in excess of ten thousand rupees net per month for each customer. The bank plans on disbursing almost Rs. 100 billion which will touch the lives of almost thirty million citizens. Housing is every citizen's birth right. It is a known fact that the Mortgage Business drives approximately 100 different sectors and thus is one of the driving forces in boosting the economy of a country. In line with this, NBP's Mortgage Financing Product, under the brand of NBP Saibaan, has been fully launched throughout Pakistan in 2007, catering to both the urban and rural areas of the country. In 2007, NBP Saibaan has been the market leader in housing finance as the overall disbursements were at an average of approximately Rs. 350 million each month, which is by far ahead of the competition. As on December 31st 2007 the total NBP Saibaan portfolio stands at Rs. 9.35 billion. Thus NBP Saibaan has become the leader amongst the top five Banks of Pakistan in Mortgages. Pakistan has a massive backlog of over 6 million housing units, where in the country needs about 0.6 million additional units every year. A supply

of 0.3 million units per year exists only. A back log of 0.3 million additional units is added to the existing 6 million every year. In 2008, we intend to cater to this housing demand significantly by targeting all segments of the population nationwide. The flagship NBP Advance Salary product continued to grow in 2007 and maintained its position as the single largest product in the country with its accumulated disbursement crossing Rs.115 billion. The number of organizations whose employees are entitled to 14 avail this scheme is gradually being increased ensuring continued growth. The latest addition is the Pakistan Army and the target is almost half a million new customers in the next three years in addition to the existing base of one million satisfied customers approximately. Our retail banking is expanding its reach to its diversified customer base by offering new services and products through new delivery channels so as to minimize counter traffic, increase product offering and reduce administrative costs. The development of alternate delivery channels, use of I.T. and leveraging large customer base for cross selling potential are the key strategies of NBP for increasing its retail

business. NBP holds 16% market share in the consumer loan business and we aim to increase it gradually without compromising on the quality of portfolio. Our call center is a value addition in customer services and provides overall support to our retail products. It is a unique technology as it is not service provider specific and free calls can be made to the NBP Help Line on 0800 800 80 from any land or cell phone in the country.

2) Commercial Banking
We plan to establish commercial centers across the country looking at the business potential in the area, size of the branch and its capabilities to deliver the desired service in order to attract quality customers. The objective is to target the untapped sectors and provide them professional quality service, through one window operations and Relationship Managers stationed at those centers. We expect and hope to reduce the turn around time and become more competitive and market oriented. Further this customer friendly and dedicated set up at convenient locations would help in improving the image of the Bank as well. These Centers would work in conjunction with the existing setup of Commercial Lending done throughout the NBP branch network. The main purpose of these centers is to generate ancillary business in addition to funded

and non-funded facilities, with quick turn around time in decisions for customer satisfaction.

3) SME
Small and Medium Enterprises (SMEs) remain the main area of focus for NBP and are considered the future growth driver. The growth of SME is important as they generate higher yields and are expected to be a high growth sector in the nearterm. The services available to SMEs are similar to those provided to our Corporate / Commercial customers, including, but not limited to working capital finance, term lending, trade finance, letter of credits and guarantees. Our growth strategy for SMEs revolves around developing a better understanding of the SME market, increasing market penetration through our existing products and newly tailored ones, and increasing our capacity to provide SME-specific services to our clients. The bank is engaged with Shore Bank International (SBI) in a technology as well as Technical Assistance agreement. The objective of which is to establish more effective SME lending at a select number of NBP branches. These techniques (including cash-flow based assessment) are institutionalized through an extensive staff training process. The pilot phase of the

project (confined to selected Regions of Punjab) culminated in December 2007 and overachieved most of the pre-defined targets. More than PKR 1.6 billion in loans has been disbursed to over 811 undocumented businesses while maintaining an NPL rate of less than 2%. After the success of the pilot project, NBP has decided to engage the services of SBI to roll out the Technical Assistance on a national scale, covering 200 branches in Sindh, Punjab and Balochistan in the next two years.

4) Human Resource
For NBP the dedicated, hardworking staff is one of the key strengths of the bank. NBP has been investing in developing this valuable resource through need based training and career growth development. Our HR objective is to become an employer of choice and to maintain complete industrial harmony within the institution. Our new hiring of top class MBAs as Management Trainee Officers (MTOs) and search for talent within the bank has helped in preparing second and third tier leadership 15 lines which will shape our succession planning process and at the same time will ensure that with the passage of time our employee refinement and skill

enrichment program continues. We also have started new Employee Communication Program' and internal organizational magazine to improve the interaction of top and middle level management with the lower management. Female employees are being encouraged through female empowerment program under which they are given responsible and challenging assignments. Currently over 60 females are employed as branch managers all over the country and some females hold senior management positions.

5) Credit and Risk Management

NBP is continuously upgrading its risk management process to identify, evaluate and manage risk. During the year the bank established an Operational Risk Management Unit to supplement its already established Credit and Market risk units for comprehensive risk managements. Our risk management in terms of adoption of Basel II guidelines is on time and is advancing smoothly with completion of internal gap analysis. Our Credit Management System is based on elaborated risk assessment and Credit Rating System to ensure a very objective and timely assessment of each proposal. We have our internal filtration systems and approval hierarchy to ensure that proper authority and

responsibility is established and at the same time to reduce the lead processing time of the credit application. We have proper monitoring system and have also setup a separate Credit Administration Department (CAD) to further improve our credit monitoring function.

6) Special Assets Management

With a provision coverage of 84% we believe that going forward our Special Assets Management Group will make major contribution towards the Bank's profitability through recoveries and reversal of provision charge as a result of declassification / rescheduling. We have revamped our special assets management business and have coordinated our efforts to expedite recoveries and settlements.

7) Operations
We are committed and focused towards good quality customer service and in 2007 with the motto of Putting a smile on our Customer's face. We made concerted efforts and took a number of initiatives. Workshops and seminars were conducted to disseminate the very important message of Excellent Customer Service. We are transforming our branches to give a modern look and convenience. A number of branches have been shifted to prominent and spacious locations. We also have 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 establishment of customer facilitation offices at the regional levels to help on the spot resolution of customer complaints.

8) Information Technology
Today banking is becoming more and more mechanized and it is the I.T. support that can improve the customer services and reduce cost 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 capabilities by many folds but will also simplify our internal procedures thereby reducing the transactional cost and lead time for service. NBP has started a number of projects in relation to I.T. structure up-gradation.The bank is expanding its ATM network and connectivity to further expand our reach to the customers. This year we completed our automation of the government's tax collection services thereby opening

16 new opportunities for such services on behalf of other organizations. NBP is also looking into other I.T. products for salary and pension disbursement and Ebanking for better services

9) Agriculture
NBP remains the largest agriculture lender in the banking sector in Agriculture with approximately 300,000 borrowers and gross disbursement of Rs. 32 billion during the Financial Year 2006-2007. Our vast domestic branch network having 45% branches in rural areas and unique product offering under the banner of Kisan Dost provides us competitive edge over our peer banks. Our specialized Agriculture, Field Officers, being Agriculture graduates are trained to understand the needs and limitations of our borrowing farmers as well as versed with the latest trends in Agriculture production technology providing technical guidance and specialized services to our customers.

10) Deposits
NBP is the largest bank in terms of deposit. Our large clientele and confidence of our depositors belonging to all walks of life is a major strength. We have shown appreciable growth of 18% in deposits on YoY basis, which is significant from

the view point that with the consolidation in the banking sector competition for deposits is ever increasing. We are branding our liability products and will continue to develop new liability side products for continuing our leadership position in this business. This year we introduced three new liability products; NBP Premium Saver account, NBP Premium Amdani account and NBP Enhanced Saver account. These schemes have received excellent response from the customers and we expect healthy growth in future under these and new products that the bank is going to launch on the liability side. Given the large base and competition in the banking sector, the bank's performance is commendable in increasing its deposits by Rs. 90 billion especially low cost deposits.

11) International Operations

NBP has the largest international franchise in terms of Assets. We are present in four continents and have branches in all the countries that are major trading partners of Pakistan. Our unique coverage of Central Asia, Far East and South Asia is incomparable and we will be the major benefactor once the trade business from the Energy rich Central Asian Republics picks up. The bank is planning to start its operations in Saudi Arabia

(mid 2008) and further expand its branches in Afghanistan and Bangladesh . The bank's international operations strategy is focused towards increasing trade business and expands where the bank has competitive advantage.

12) Islamic Banking

The year 2007 marked the first year of Islamic Banking operations. During the year under review, in addition to active participation in various Sukuk transactions, two more Islamic Banking branches at Lahore and Peshawar started operations. NBP's plans for the year 2008 include opening of Faisalabad and Rawalpindi branches with the focus on growing organically by opening more standalone Islamic Banking branches, utilizing NBP's existing branch network of 1,200 plus conventional branches and looking into strategic acquisitions for expansion in this field.

13) Credit Rating

Moody's maintained NBP's financial strength rating at D-thereby recognizing the internal strength and leadership position of the Bank. In addition, NBP also enjoys the highest Credit Rating amongst Pakistani banks; JCR-VIS Credit Rating Co. Limited awarded highest standalone Credit Rating of AAA to NBP. The JCR-VIS Credit Rating Co. comments about NBP says a lot about the bank: The organization

has been able to 17 strategically manage and build on its competitive advantages which has translated into the strong and well managed improvement in profitability trend observed over the last few years, a substantial balance sheet of sound asset quality, and strong liquidity and capitalization levels.

14) Market Recognition

In addition to the highest Credit Rating in the banking sector NBP is exultant to receive several awards from both local and foreign institutes of repute. NBP in year 2007 received the award for Best Return on Capital for 2006 amongst all banks in Asia by Bankers Magazine' in July 2007. Mr. Ali Raza, Chairman & President was awarded The Asian Banker Leadership Achievement Award 2007 by Asian Banker in 2007. The Asian Banker has adjudged NBP as the Strongest Bank in Pakistan. Our investment in technology and Rating Co. Limited

15) Social Responsibility

NBP fully recognizes its responsibility towards society in general and towards promotion of sports in the country in particular. The organization has always contributed towards

worthy causes and has donated generously in case of natural calamities. Our focus is towards the promotion of sporting activities in the country and we are giving our patronage for the promotion of national game of hockey. To promote healthy sports activity in the country NBP has built a state-of-the-art sports complex at Karachi. While we concentrated on achieving our financial targets, we did not lose sight of the future and its challenges. We continue to invest in our man power training and upgradation of I.T. infrastructure. Although in the short run this will result in an increase in our administrative and capital expenditure but in the long run will increase our efficiency in terms of real cost reduction and increased product offering. In future we need to invest heavily into I.T. to bring further improvement in our service standards and also to reduce our transaction costs. Our future envisions expansion in terms of geography, clientele and products. We are setting our eyes towards excelling amongst banks of the South Asian Region and would like to improve even further on our rankings both domestically and regionally. Our investment in technology and human resource will continue to prepare us for the future challenges. Customer will be the centre of our focus to become the

Bank of Choice' for Customers. We will continue to redesign, improve our existing products and introduce new products / services to better serve our clients. We are going to capitalize on our strengths of potential to cross sell, introduction of new delivery channels, and organic as well as strategic expansion through acquisition. We will focus on effective deployment of our capital to further enhance our earning potential and will continue to tap into un-banked areas through our micro finance and SME products. We will not only maintain our leadership position in deposits, treasury operations and Capital market but will introduce new structured products for our upscale corporate clients. While our front office strategy is penetration and sustenance of our business, our back office strategy is modernization, cost rationalization, strong internal controls and conformity with compliance standards. Finally we extend our appreciation to the bank's staff for their commitment, dedication and hard work in achieving these excellent results. We would like to express our sincere reverence to the Board Members whose valuable guidance has always enlightened us in our decision making. Finally we would like to express our appreciation to our stakeholders, regulators and our

valued customers for their support and continued confidence in NBP.

Corporate and Financial Reporting Framework (Code of Corporate Governance)

The Board is fully aware of its responsibilities established by the Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). The 18 Directors are pleased to give the following declarations / statements to comply with the requirements of the Code. The financial statements (Balance Sheet, Profit & Loss Account, Cash Flow Statement, Statement of Changes in Equity and notes forming part thereof), prepared by the management of the bank give the information in the manner so required and respectively give a true and fair view of the state of the bank's affairs as at December 31, 2007 and of the results of its operations, changes in equity and its cash flows for the year then ended. Proper books of accounts have been maintained. Appropriate accounting policies have been consistently applied in the preparation

of the financial statements and accounting estimates are based on the reasonable and prudent judgment. The International Financial Reporting Standards, as applicable in Pakistan have been followed in preparation of the financial statements and departure there from, if any has been adequately disclosed. The system of internal control is sound in design and has been effectively implemented and monitored throughout the year. The Board is responsible for establishing and maintaining the system of internal control in the bank and for its ongoing monitoring. However, such a system is designed to manage rather than eliminate the risk of failure to achieve objectives, and provide reasonable but not absolute assurance against material misstatements or loss. The process used by the Board to review the efficiency and effectiveness of the system of internal control includes the following: The Board has formed various committees comprising of nonexecutive directors. Internal audit department of the bank conducts the audit of all branches, regions and groups at Head Office level on ongoing basis to evaluate

the efficiency and effectiveness of internal control system and proper follow up of irregularities and control weaknesses is carried out. The Board receives confirmations / representations from all group and regional heads on annual basis confirming effectiveness of the internal control system established and maintained by them within their function. The principal features of the bank's control framework include: The bank has clearly defined organizational structure, which supports clear lines of communications and reporting relationships. There exists a properly defined financial and administrative power of various committees and key management personnel, which supports delegations of authority and accountability. The bank has effective budgeting system in place. Annual budget of the bank is approved by the Board and monthly comparisons of actual results with the budget are prepared and reviewed by the senior management. The bank has a comprehensive framework of written policies and procedures on all major areas of operations such as Credit, Treasury Operations, Finance, Internal audit and compliance approved by the Board.

19 There are no significant doubts about the bank's ability to continue as a going concern. There has been no material departure from the best practices of the corporate governance as detailed in the listing regulations. Key operating and financial data is available in the annual report.

RISK MANAGEMENT FRAMEWORK

NBP Board of Directors and senior management is fully committed to strengthen the Risk Management structure and practices in NBP. A number of initiatives taken and planned by NBP, in this regard reflects management commitment to upgrade the quality of the risk management process, such as the formation of a Board level Risk Management Committee; Basel II Gap Analysis Exercises; implementation of Risk Management Software for managing Credit Risk, continuous improvement in the Policies, Procedures and reporting for effective Risk Management and shift from fixed mark-up rate structures to floating rates of mark-up for managing interest rate Risk.

REPORTING OF INTERNAL CONTROL SYSTEM

Bank's management has established and is managing an adequate and effective system of internal control which encompasses the policies, procedures,

processes and tasks as approved by the Board of Directors that facilitate effective and efficient operations. The management and the employees at all levels within the Bank are required to perform as per these approved Internal Control System components. The Internal Control System ensures quality of external and internal reporting, maintenance of proper records and processes, compliance with applicable laws and regulations and internal policies with respect to conduct of business. The management ensures that an efficient and effective Internal Control System is in place by identifying control objectives, reviewing existing procedures and policies and ensuing that control procedure and policies are amended for time to time wherever required. However, Internal Control System is designed to manage rather than eliminate the risk of failure to achieve objectives and provide reasonable but not absolute assurance against material misstatement or loss.

EVALUATION OF INTERNAL CONTROL

The Bank has an independent Internal Audit Group that conducts audit of all Branches, Regions and Groups at Head Office on an on-going basis to evaluate the efficiency and effectiveness of Internal Control System. In addition to that compliance Group is also in

place with independent Compliance Officer in 119 Branches and 29 Regional Compliance Chiefs with supporting staff to take care of compliance related issues to strengthen the control environment. For the year 2007 the bank has made its best efforts to ensure that an effective Internal Control System continues to perform in letter and spirit. The observation made by the external and internal auditors is reviewed and measures are taken by the management to address the Internal Control. We assess that the Internal Control environment is showing signs of improvement as compared to previous years in all areas of the bank. The bank is endeavoring to further refine its internal control design and assessment process as per guidelines issued by the State Bank of Pakistan. Accordingly, Bank is making all possible effort to improve the professional skills and competency level of the staff through need based training programs. Finally we extend our appreciation to the Bank's staff for their commitment, dedication and hard work in achieving these excellent results. We would like to express our appreciation to our stakeholders, regulators and our valued customers for their support and continued confidence in NBP.

20

AWARDS AND ACHIEVEMENTS

Best Foreign Exchange Bank 2008 awarded by world's leading financial journal Global Finance." Stable AAA/A-1+ (Triple A/A-One Plus) rating (Standalone Basis) by JCR-VIS (July 2007) Best Return on Capital for 2006 amongst all Banks in Asia . - Banker Magazine in July 2007 World's leading financial journal, Global Finance has named NBP as the Best Emerging Market Bank from Pakistan for the year 2006. "Best Foreign Exchange Bank Pakistan award for the year 2006 by world's leading financial journal Global Finance. 21 Due to consistent improvement in NBP's Core Profitability, Asset Quality and Economic Capitalization in recent years, Moodys Investors Service upgraded the Financial Strength Rating (FSR) from E+ to D-, in November 2005. Best Foreign Exchange Bank Pakistan award for the year 2005 by world's leading financial journal Global Finance. Best Bank - Pakistan award for the year 2005 by world's leading

financial journal Global Finance. The Asian Banker, a reputable financial journal, has published the report of its research project on the ranking of 300 of Asia 's Strongest Banks based on a 11-Dimensional Dynamic Scoring Criteria has adjudged National Bank of Pakistan as the Strongest Bank in Pakistan . On the basis of overall financial performance during 2004, NBP has been listed Amongst top 1000 banks in the world and Number 1 Bank in Pakistan by the prestigious Banker Magazine in its issue of July 2005 . The Banker Magazine in July 2005 recognized NBP as the 10th Best Bank in terms of Profit on Capital' in the world. Bank of the Year awarded for the year 2005 by the world renowned The Banker magazine owned by the Financial Times Group, London. On an all Pakistan basis National Bank of Pakistan was awarded the Kissan Times Award for the year 2005 by the Prime Minister, Mr. Shaukat Aziz, for its services in the Agriculture Sector .World's leading financial journal, Global Finance in an exclusive survey has named NBP as the Best Emerging Market Bank from Pakistan for the year

2005. Bank of the Year award for the year 2004 by the world renowned The Banker magazine owned by the Financial Times Group, London. Euromoney Magazine, a leading and prestigious journal, published from London , UK , in its issue of March 2005 has published Moody's Investors Service rankings in which NBP is the only Pakistani bank which has been ranked among the Top 100 banks of Asia for it performance in the fiscal year 2003. WEBCOP-AASHA, an alliance against gender discrimination at workplace, presented a Recognition Award to National Bank of Pakistan on December 18, 2004 for having a Gender Sensitive Management. In May 2004, NBP's standalone long-term rating was upgraded by JCR-VIS Credit Rating Agency to AA (double A) from AA -( double A minus) with stable outlook, while standalone short-term rating was maintained at A-1+(A one plus). This is now the best rating for a local commercial bank in Pakistan. In its issue of March 2004, Global Finance has also declared NBP as The Best Foreign Exchange Bank in Pakistan. The Banker Magazine in July 2003 recognized NBP as the bank

with the highest return on capital in Asia and No.8 in the world. World's leading financial journal, Global Finance after a worldwide survey declared NBP in its issue of May 2003 as one of the best banks in the emerging markets. Bank of the Year awarded for the year 2002 by the world renowned The Banker magazine owned by the Financial Times Group, London Bank of the Year awarded for the year 2001 by the world renowned The Banker magazine owned by the Financial Times Group, London

President's Awards:
1) Mr. S. Ali Raza, Chairman & President, NBP was awarded The Asian Banker Leadership Achievement Award 2007 by Asian Banker ( an internationally reputed Financial Journal) in its issue of June 2007 2) Mr. S. Ali Raza Chairman & President, NBP, was conferred Sitarai-Imtiaz by the President of Pakistan , General Pervaiz Musharraf on August 14, 2005 22 3) Business Week of The McGraw Hill Companies in its July 11,2005 edition has adjudged Mr. S. Ali Raza, Chairman President, NBP as one of the twenty five Leaders of Asia at the & Forefront of Change and has identified them as Stars of

Asia including the President of Indonesia 4) Mr. S. Ali Raza's (Chairman & President, NBP) capabilities were also recognized by the Institute of Bankers in Pakistan when he was awarded a gold medal in 2003

PRODUCTS OF NATIONAL BANK OF PAKISTAN Premium Amdani

Earn up to 11% p.a. + Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5 years Free Demand Draft, Pay Order and Cheque Book* Convenience of NBP online Aasan Banking (for online banking customers) Free NBP Cash Card (ATM+Debit) Running finance facility up to 90%

Monthly Income Scheme

Amount of investment required from Rs. 20,000/- to Rs. 5,000,000 Investment period is 5 years Free Demand Draft, Pay Order and NBP Online Aasan Banking* Free Cheque Book / NBP Cash Card (ATM + Debit) Profit paid every month as follows:

Period Profit Rates** 1st year 7.50% 2nd year 8.50% 3rd year 9.50% 4th year 10.50% 5th year 11% Financing facility available up to 90% of the deposit value Premature encashment will attract penalties Zakat and withholding tax will be deducted as per rules

Premium Saver PLS Saving Account

Earn up to 7.25% p.a. + Minimum saving balance of Rs. 20,001/- & a maximum balance of Rs. 300,000/-* Free NBP Cash Card (ATM + Debit) Convenience of NBP Online Aasan Banking (for online banking customers) Two debit withdrawals allowed in a month & no limit on number of deposit transactions Profit calculated on monthly and paid on half yearly basis 23

NBP Karobar Mera Apna Karobar

Minimum down payment, 10% of asset price (5% for PCO & Telecaster) Tenure 1 to 5 years (for PCO 2 years) Grace period 3 months Maximum loan amount Rs. 200,000/Age 18-45 years Mark-up (variable) 1 year KIBOR + 2.00% p.a. The customer will pay markup @ 6% p.a., rest will be borne by GOP* Life & disability insurance paid by GOP* * subject to the availability of subsidy from GOP

NBP Saibaan Home Financing

Home Purchase Home Construction Home Renovation Purchase of Land + Construction Balance Transfer Facility (BTF)

NBP Advance Salary Personal Loan

Easy installments of 1 to 60 months at your choice No minimum income collateral & insurance charges required

Quick processing and fastest disbursement The product is for permanent employees of Government, Semi Government and Autonomous bodies receiving salaries through NBP accounts.

NBP Cash Card

ATM + Debit Card Use it as an ATM in any of the ATMs in Pakistan Use it as Debit Card in any of the outlets with ORIX POS machine Cash withdrawal up to Rs. 20,000/- per day Account Balance Enquiry Mini Statement (Only at NBP ATM) PIN Change facility (Only at NBP ATM)

NBP Investor Advantage Financing Facility for Stock Investors

No security requirement, except for the customers equity Customers equity freely available for investment Equity acceptable in cash or approved shares 24

Features

Comfortable and secure environment for trading

NBP financing at very easy terms requiring minimum documentation

Minimum turn around time

No security requirement from the customer except for the customer's equity

Customer's equity freely available for investment. Equity acceptable in cash or approved share.

Eligibility

Pakistani National with valid computerized national ID Card Over 21 years of age An account with NBP designated Branch Equity in the form of cash or NBP approved shares No default with any financial institution

Application Procedures
Obtain facility application form the NBP Marginal Desk at designated branches

Fill in the application form and submit it to the branch

On application approval, deposit equity as cash in the margin financing account at the bank. Alternatively NBP approved shares can also be deposited in the NBP CDC Account (CDC A/c No. 2345) Start trading through comfortable & friendly trading centers establishment for you

(In collaboration with Taurus Security Limited a subsidiary of NBP)

Trading limit available for the amount of equity + bank financing.

Product Information

Financing Amount: Rs.50, 000/ - To Rs.10, 000,000/Equity Requirement: In the Form of Cash or Shares or Both (Currently Minimum Rs. 215,000/- @ 30%) Shares: As per NBP Approved List Available. Shares In Physical Form Not Acceptable. Trading: Allowed Only Through Trading Centers Created by NBP and Operated by Taurus Securities Limited (A Subsidiary of NBP) Pricing Fixed Price At The Time of Facility Sanction, Currently 6 Month Kibor + 3% (Per Annum)

Other Charges
On Time Application Processing Fee of 0.5% of the loan amount or Rs.5,000/

(Whichever is lower) Brokerage Charges/ Fees/ Taxes/ etc. Charged At Actual On Brokerage Invoices

Documentation Fee Would Be Charged On Actual

Requirements

Photograph of Applicant NBP Account - Current or PLS Marginal Financing Application Form Copy of CNIC

Copy of CNIC of Two (2) References Borrower Basic Fact Sheet

25

Duly Filled In Statement of Assets & Liabilities.

NBP Cash and Gold Ready Cash against Gold

Facility of Rs. 10, 000/-against each 10 gms of net weight of Gold Ornaments maximum limit of cash Repayment after one year Roll over facility No penalty for each repayment

Meet your need for ready cash against your idle gold jewelry with no minimum limits
With NBP's Cash n Gold, you can meet your need for ready cash against your idle gold jewelry. Rate of mark-up 13% p.a. Facility of Rs. 10,000 against each 10 Gms of net contents of gold No maximum limits of cash Repayment after one year Roll over facility

Only gold ornaments acceptable Weight and quality of gold to be determined by NBP's appointed schroffs No penalty for early repayment

Agriculture Farming Program

Competitive mark-up rate Quick & easy processing Delivery at the farmers doorstep Technical guidance to farmers Wide range of financing schemes for farmers Finance facility up to Rs. 500,000/- for landless farmers against personal guarantee Financing available against pass book, residential/commercial property, gold ornaments and paper security Loan facility on revolving basis for three years (renewable on yearly basis without documentation and approval) NBP Kisan Dost NBP Kisan Dost ( Agriculture Made Easy)

NBP Student Loan Scheme

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech, a STUDENTS LOAN SCHEME (SLS) for

Education was launched by the Government of Pakistan in collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan. The Scheme is being administered by a high powered committee comprising Deputy 26 Governor, State Bank of Pakistan, Presidents of the commercial banks and Deputy Secretary, Ministry of Finance, Government of Pakistan. The objective of the Students Loan Scheme is to provide financial assistance to the meritorious students of insufficient means who have obtained 70% marks in the last public examination and are unable to pursue their studies within Pakistan due to financial difficulties. Loans facility is available to those students who are nationals of Pakistan including Northern Areas, Federally Administered Tribal Areas and Azad Jammu and Kashmir and of age not exceeding 20 years for graduation, 30 years for post-

graduation and 35 years for PhD at the time of admission. The maximum period of repayment of loan is 10-Years from the date of disbursement of first installment .The borrower shall repay the loan in monthly installment after six months from the date of first employment or one year from the date of completion of studies, which ever is earlier. Loan is granted only to those students who have been admitted to the approved under noted Affiliated Colleges /Universities. Under the Scheme, loans are available in the following subjects. Engineering Electronics Oil Gas & Petro-Chemical Technology Agriculture Medicine Physics Chemistry Biology, Molecular Biology & Genetics Mathematics Other Natural Sciences DAWA and Islamic Jurisprudence (LL.B/LL.M Sharia)

Computer Science/Information System and Technology including hardware. Economics, Statistics and Econometrics Business Management Sciences Commerce The facility under this Scheme is restricted to the studies in the above-mentioned subjects only or such other subjects as may be approved by the Apex Committee from time to time. The amount of loans under the Scheme covers the cost of fee, books and boarding for the entire period of study. Schedule Fee and boarding expenses excluding meal charges is disbursed directly to the University/College. The amount of procurement of textbooks is disbursed directly to the student. The students desirous of availing loan under the Scheme may apply on prescribed Form 27 for financial assistance subject to he or she has got admission on merit through normal procedure in the Universities/ Colleges afore-mentioned. Application Forms are available from the designated branches. Applicants are required to submit/send their applications duly completed in all respect,

to the designated branches indicated against Universities/ Colleges. Those students who have already availed this facility last year need not to apply.

NBP's Internet Based Home Remittances Service

Log in here for Secure Remittance- > https://www.pakremit.com

Product Information:
Pakremit is an internet based Home Remittance Service. This service is available to U.S. residents for sending money to their family and friends in Pakistan. One must have a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit funds through this channel. Remitters in USA can log on to our user friendly website, www.pakremit.com and easily remit funds to Pakistan from the comfort of their homes, in a matter of minutes. The service is fully secure with advance encryption application and is available for use 24 hours a day, 7 days a week. Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well.

Process:
Remitters log on to www.pakremit.com and after completing the registration process, are able to remit funds. The whole process takes a few minutes. Funds in Pak Rupees can be sent to beneficiaries, having an account with any bank in Pakistan,

including NBP. While funds are credited directly to beneficiaries maintaining accounts with NBP, a pay order or demand draft is couriered to other banks for their customers. Pay order or demand draft can also be couriered directly to the beneficiarys office or home, if requested by the remitter. Funds in US Dollars can be sent only to a Beneficiary maintaining a US Dollar account with one of NBPs Foreign Exchange Branches. Click here for details of NBP Foreign Exchange Branches. USPs (Unique Selling Propositions) 1. Convenient and Fast 2. Reliable and Secure 3. Available 24 x 7 Contact Details: E mail: customerservice@nbpusa.com Telephone: +1 (212)- 344-2239 Address: 100 Wall Street, 21st Floor, New York, NY 10005 Contact Person: Turab Hasan

NBP Protection Shield

No documentation No medical required

Premium Auto Debit facility & choice of deactivation Coverage includes death due to: Natural Calamities e.g. Earthquake, Flood, Cyclone etc. Accident 28 Riots* Civil Commotion* Strikes* Acts of Terrorism* NBP Protection Shield NBP Protection Shield (Life is Precious) * provided the insured is not actively involved in these activities

NBP ISLAMIC BANKING

Banking on your Faith

1) DEPOSIT SCHEMES
Deposit Schemes being offered by NBPs Islamic Banking Branches would include the following: 1) Current Deposit Scheme 2) Profit & Loss Sharing (PLS) Deposit Scheme Current Deposit Scheme Ideal for customers looking for security of their funds along with

absolute convenience in its use, in the form of Current accounts Funds deposited with the bank will be utilized by the bank at its sole discretion in Shariah acceptable avenues. The Customer will have the flexibility to withdraw a part or the whole of their balances at any time as per their requirement This is a non remunerative deposit scheme and thus the customer will not be sharing the profits nor will be sharing losses (if any). However, the Bank may at its absolute discretion give rewards to these Depositors depending upon the operational results of the Bank. Losses will not be passed on to these Depositors. Other terms, conditions and rules for Current Deposit Accounts to be advised by the Bank at the time of opening of Account. Profit & Loss Sharing Deposit (PLS) Scheme PLS Saving Deposits Scheme will accept deposits on Mudaraba basis, where the depositor will be Rabb-ul-Mal and Bank will be Mudarib. The Bank will invest the deposited funds at its (Banks) sole discretion in Shariah acceptable avenues The Depositor will have the flexibility to withdraw a part or the whole of their balances at any time as per their requirement. The Bank will give profit to the

Depositors on the basis of agreed ratio of actual profits to be announced by the Bank from time to time. In the event of financial loss, the PLS depositors will bear the loss in proportion of their investment. The Depositors will not participate in the management of the business of the Bank Other terms and conditions as well as rules for PLS Deposit Account to be advised by the Bank at the time of opening of Account.

2) FINANCING FACILITIES
Commercial and Corporate customers requiring financing will have the following financing facilities available to them to meet their requirements: 1. Murabaha Murabaha may be defined as a contract between a Buyer and Seller under which the Seller discloses to the Buyer the cost of goods being sold and adds an agreed profit. Price 29 is payable on spot or at a certain future date, in lump sum or in installments (deferred payments). Murabaha Facility Under the MURABAHA FACILITY, the Bank will first purchase the required goods directly or through an Agent. All costs incurred on such purchases

will be borne by the Bank. Subsequently the Bank will sell the goods to the customer on deferred payment basis (30 days to one year) at an agreed price comprising cost of goods purchased and Bank's profit. On due date the customer will pay to the Bank the agreed price, in lump sum or as per the agreed installment schedule. 2. Ijarah (Leasing) Ijarah means to give something on rent. The term IJARAH is analogous to the English term leasing. Firstly the Bank will purchase the Assets as required by the Customer and subsequently the assets will be leased to the Customer on the terms and conditions as agreed with him. Ijarah Facility will be offered for the following assets: 1. Vehicles (both Commercial and Private) 2. Office Equipment 3. Plant and Machinery

3) OTHER SERVICES
In addition to Shariah acceptable standard general banking services, following services are also being offered at the Islamic Banking Branch :

Letter of Credit Facility Handling of Remittances Issuance of Bank Drafts and Pay Orders. Collection of Export Bills. Collection of Local Bills. Government Collections Utility Bills Collection

NBP CORPORATE TREASURY

The NBP treasury and capital market group has developed a reputation of being the market leader in coming up with customized solutions for a large and varied client base that is spread virtually all across the country. The client base does not consist of only blue chips ones but encompasses public sector clients, retail sector, multinationals, local conglomerates as well as individuals. 30 National bank treasury is currently regarded as a market leader in both foreign exchange and rupee denominated products because of its emphasis on service quality.

We offer
Narrowest bid / offer spread and quickest on line quotes Customized solutions to minimize risk and optimize returns as per the needs and

circumstances of the clients Focus on building sustained and long term relationship with institutional, corporate and retail clients. Local presence across the nation as well as internationally. Latest Rate Sheet

PRODUCTS OFFERED
1) Plain Vanila Fx Products 2) Pakistan Investment Bonds 3) Derivatives Products

Market Research and Feedback

The treasury periodically prepares its own research report on money market and FX and sends it to clients who are interested in getting such information. This research report is quite popular with clients who are proactive and wants to develop their own views. TREASURY PRODUCTS 1) Plain Vanilla FX Products NBP Treasury a market price maker and trend setter in the plain vanilla Foreign Exchange products. Its ability to offer tight prices, coupled with timely and accurate research making it a bank of choice for clients seeking to favorably position their currency risk As a result, National bank has one of the largest FX

book in the country. 2) Pakistan Investment Bonds Pakistan Investment Bonds issued by Government of Pakistan are a preferred means for a majority of institutional investors to invest their surplus funds for a longer time horizon. This way they are able to lock a higher yield for a relatively long term rather than take the risk of re-pricing after relatively shorter time periods. Furthermore, PIBs are highly secured and risk free as they are guaranteed by the government of Pakistan. NBP is the leading Primary Dealer for PIBs primarily because of its inventory size and the appetite for such a long-term instrument given its deposit base. While most foreign / private banks would have to go to the secondary market in order to satisfy a large order from an institutional investor, NBP can execute such large orders through its own book. This means that it can offer tight prices for large amounts even under volatile market conditions. 3) Derivatives Products NBP treasury has been at the forefront in developing the derivatives market in Pakistan and has contributed both individually and from the FMA (Financial Market Association) front as well. The first ever Derivative transaction of the Pakistani

banking sector was done by NBP. Some of the more common derivative structures being offered include: a) Currency Options b) Hedges Foreign Exchange Risk An option gives the buyer the right but not the obligation to buy or sell an asset at a prespecified date and price. So the upside profit potential is unlimited whereas the downside loss is protected at a pre determined level. Various structures of currency options are available including 31 Knock-ins / Knock outs Participating Forwards ... and many more c) Interest Rate Swaps and FRAs Hedges the Interest Rate risk A client can convert a fix rate loan into floating rate one or vice versa by using these derivative instruments. This allows the clients to develop and implement their views about the evolving interest rate scenario. For example, if the borrower feels that the interest rate might go up in the future, than he may choose to enter into a Pay Fixed Received Floating swap with its bank to effectively hedge its floating

rate loans.

d) Cross Currency Swaps

Hedges the Interest Rate Risk This product allows a client to convert its rupee based loans into a dollar based loan. The clients exposure is shifted from PKR KIBOR to USD LIBOR. Islamic Banking 5 Branches 1) FAISAL ABD 2) KRACHI 3) LAHORE 4) PESHAWAR 5) RAWALPINDI Online Branch Finder 156 Branch (es) Overseas Branch Finder 18 Branch (es) 11 Regional Office(s) Swift Branch Finder 12 Branches Gujranwala Hyderabad Islamabad Multan Quetta Sialkot Faisalabad Karachi Lahore Peshawar Rawalpindi

6 Customer Facilitation Center(s)

1) Mirpur 2) Karachi 3) Lahore 4) Rawalpindi

INTERNATIONAL BANKING SERVICES

National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is To effectively manage NBP's exposure to foreign and domestic correspondence Manage the monetary aspect of NBP's relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank's profitability Generation of incremental trade-finance business and revenues

NBP offers:
The lowest rates on exports and other international banking products 32 Access to different local commercial banks in international banking 1) DEMAND DRAFTS If you are looking for a safe, speedy and reliable way to transfer

money, you can now purchase NBP's Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch 2) MAIL TRANSFERS Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market. 3) PAY ORDER * NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive. 4) TRAVELER'S CHEQUES Negotiability: Pak Rupees Traveler's Cheques are a negotiable instrument Validity: There is no restriction on the period of validity Availability: At 700 branches of NBP all over the country Encashment: At all 400 branches of NBP Limitation: No limit on purchase Safety: NBP Traveler's Cheques are the safest way to carry our money 5) LETTER OF CREDIT NBP is committed to offering its business customers the widest range

of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions. 6) COMMERCIAL FINANCE Let us help make your dreams become a reality Our dedicated team of professionals truly understands the needs of professionals, agriculturists, large and small business and other segments of the economy. They are the customer's best resource in making NBP's products and services work for them. 7) FOREIGN REMITTANCES To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to: Increase home remittances through the banking system i. Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries ii. PakRemit iii. Remit funds from USA to Pakistan 33

New Features:
The existing system of home remittances has been revised/significantly improved and well-trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides United National Bank (the joint venture between NBP and UBL in UK)., and Bank AlJazira, Saudi Arabia. 8) ZERO TARIFF NBP is providing home remittance services without any charges. Strict monitoring of the system is done to ensure the highest possible security. Special courier services are hired for expeditious delivery of home remittances to the beneficiaries. 9) SWIFT SYSTEM The SWIFT system (Society for Worldwide Inter bank Financial Telecommunication) has been introduced for speedy services in the area of home remittances. The system has built-in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of home remittances. NBP SWIFT Network The SWIFT Center is operational at National Bank of Pakistan with a

universal access number NBP-PKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT. Using the NBP network of branches, you can safely and speedily transfer money for our business and personal needs. 10) SHORT TERM INVESTMENTS NBP now offers excellent rates of profit on all it's short term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBP's rates of profit are extremely attractive, along with the security and service only NBP can provide. 11) N.I.D.A National Income Daily Account The scheme was launched in December 1995 to attract corporate customers. It is a current account scheme and is part of the profit and loss system of accounts in operation throughout the country. MODE OF CALCULATION: AVERAGE BALANCE DURING A CALENDAR MONTH 12) EQUITY INVESTMENTS NBP has accelerated its activities in the stock market to improve its economic base and restore investor confidence. The bank is now regarded as the most

active and dominant player in the development of the stock market. NBP is involved in the following: o Investment into the capital market o Introduction of capital market accounts (under process) o NBP's involvement in capital markets is expected to increase its earnings, which would result in better returns offered to account holders TRADE FINANCE OTHER BUSINESS LOANS AGRICULTURAL FINANCE NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who produce some of the best agricultural products in the World. 34 1. Agricultural Finance Services: I Feed the World program, a new product, is introduced by NBP with the aim to help farmers maximize the per acre production with minimum of required input. Select farms will be made role models for other farms and farmers to follow, thus helping farmers across Pakistan to increase production. 2. Agricultural Credit: The agricultural financing strategy of NBP is aimed at three main objectives: Providing reliable infrastructure for agricultural customers

 Help farmers utilize funds efficiently to further develop and achieve better production Provide farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming. Agricultural Credit (Medium Term): Production and development Watercourse improvement Wells Farm power Development loans for tea plantation Fencing Solar energy Equipment for sprinklers Farm Credit: NBP also provides the following subsidized with ranges of 3 months to 1 year on a renewal basis. Operating loans Land improvement loans Equipment loans for purchase of tractors, farm implements or any other equipment

 Livestock loans for the purchase, care, and feeding of livestock 3. Production Loans: Production loans are meant for basic inputs of the farm and are short term in nature. Seeds, fertilizers, sprayers, etc are all covered under this scheme. If you require any further information, please do not hesitate to e-mail us.

CORPORATE FINANCE
1) Working Capital and Short Term Loans: NBP specializes in providing Project Finance Export Refinance to exporters Preshipment and Post-shipment financing to exporters Running finance Cash Finance Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-shipment / Post Shipment Agricultural Production Loans 2) Medium term loans and Capital Expenditure Financing: NBP provides financing for its clients' capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients' attempt to upgrade and expand their operation thereby making possible 35 the fulfillment of our clients' vision. This type of long term financing proves the bank's belief in its client's capabilities, and its commitment to the country.

3) Loan Structuring and Syndication: National Bank's leadership in loan syndicating stems from ability to forge strong relationships not only with borrowers but also with bank investors. Because we understand our syndicate partners' asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction.

CASH MANAGEMENT SERVICES:

With National Bank's Cash Management Services (in process of being set up), the customer's sales collection will be channeled through vast network of NBP branched spread across the country. This will enable the customer to manage their company's total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, you'll be provided everything, which takes to manage your cash flow more accurately.

CIVIL LINES BRANCH GUJRANWALA

Following types of receipts and payments (Government transactions) are handled by NBP: PAYMENTS: Pension payment RECEIPTS: Income Tax Sale Tax- Excise Duty Vehicle Tax Admission Fee Mineral Tax Pollution Fee Passport Fee Custom Duty Property Tax Royalty Challans Miscellaneous: Registration Fee License Fee Import/ Export Fee Trade Tax Domicile Fee Agriculture Fee DEPARTMENTS: This Civil Lines branch of National Bank has the following departments: Opening and Deposits Bills and Clearing Credit department

 Retail Department Government Section Department HR department DEPARTMENT OF GOVERNMENT SECTION Department of Government section receives all the provincial and central receipts. Payment of pension also is being done by this department. 36 NBP makes payments to following: Civilian Defense civilian pensioners Retired officers of Armed forces Retired officers of PAF and families Others ( KRL, OGDC, PAEC/ PR, RANGERS) DOCUMENTS REQUIRED FOR THE PENSION PAYMENTS: i. Pension payment order ii. No and date of NIC iii. Two specimen signature, thumb and finger impression iv. Photographs of the pensioner v. Pension book Officer enters them in a ledger to keep permanent record. DOCUMENTATION Disburser portion of the PPO is filed in serial No and kept in lock and

key with accountant. All particular of PPO are entered in PPO register. The first payment is made to pensioner after proper identification. In case any clarification staff referred the pensioner to general accountant or Head office. REIMBURSMENT OF PENSION CLAIM: Branch prepares and send the RBV on link branches along with payment scroll (scroll is the document upon which all vouchers and their payments are recorded) and paid pension bills on the very next day. Link branch consolidate the statement on Performa B including its own receipts and payments. Duplicate copy of the consolidate statement is sent to SBP (State Bank of Pakistan) local office by link branch along with debit credit authority to the bank account. Branch submits monthly statement of receipt / payment on the revised Performa to the link branch. Local treasury branch on the receipt of RBV along with scroll, payment bills and challan etc debit credit the government account on the same day. Treasury branch report the consolidated receipt and payment figure

(not branch wise) including their own receipt and payments to finance division / Head Office. SUBMISSION OF DOCUMENTS Branches submit the following documents to respective treasury office. SBP offices under preprinted cover letter in the morning of next working day, through special messenger/registered post. To Treasury Branch: Following documents are submitted to the Treasury Branch: o Government Debit Scroll (Separate scroll) o Daily statement of payments inclusive government payments o Consolidated daily statement of government payments inclusive others To State Bank: Following documents are submitted to the Treasury Branch: o Letter of reimbursement o Consolidated statement (daily of government payments inclusive others) 37 STANDERS: Standers that have been made by the bank regarding pension payments: Payment of pension to pensioner should take 15 to 20 minutes.

 Government receipts should take 10 to 15 minutes. Passport fee collection within 5 minutes. Traffic challan within 5 minutes. These entire standards are being fulfilled by the staff within time. But due to the large numbers of customers it makes difficult for the cashier to handle them in time. A single voucher should be cleared within 5 minutes and it is but other customers have to wait for their term for almost half an hour. BRANCH MANAGER DUTY REGARDING PENSION Manager has to ensure that correct payment is made and its proper record is maintained. Branch manager has to ensure that no cause of complaint is arising. Hence the pensioner does not go to the Treasury office or State Bank of Pakistan unless any renewal of change is required by him to be fulfilled inevitable. Manager is respectfully managing his duties and is keeping the proper record regarding pension. In case of any confusion and clarification manager refers the pensioner to head office or their relative company office. OBSERVATION REGARDING GOVERNMET SECTION According to the observation regarding Govt. Section, the employees in this department tries its best to fulfill their duties but because they are not

well educated and trained that is why some problems keep arising time by time. To avoid and to eradicate these problems employees should get training once a year so that they can meet the current challenges and can know new techniques to handle the transactions. Incharge of the department is an experienced person and educated. The way of recording transactions is traditional. No proper bank software (computerized system) is used to make the summaries of the receipts and payments. In result bank do not have any proper record of its previous transaction except hard copies that take so much time when it has to be audited. For example few days before the Incharge of the department need the summary of the day 13th of the month but no record were found except they had to try to find the hard copy of the summary and it took half an hour. But the same work by the computerized system can be completed just in a single click. Not only daily summary but also the monthly, quarterly, semiannually and annually summaries can be made in few minutes through computerized system. So if we want to make our banking more efficient and want to create more accuracy we have to adopt the modern computerized techniques

to make our work fast and accurate. Employees in Govt. Section are not well familiar with the computer education. Training programs for the current employees are not held because of which the employees can not know the new trends of banking system.

TYPES OF ACCOUNTS
Current account PLS Saving account Term deposits Short term deposits Special notice deposits Call deposit receipt National Income Daily Account(NIDA) NBP PLS term deposit NBP Cash cards Basic banking account 38 Blind and visually impaired person account STANDARDS REGARDING OPENING DESK Issuance of cheque book should take 5 to 10 minutes Issuance of bank draft, TTs, MTs within 15 minutes Opening of an account

Open with due care under proper identification within 10 to 20 minutes. Issuance of balance certificate within 10 minutes ARE STANDARDS BEING FOLLOWED? Issuance of cheque book take almost 15 minutes and the account opening procedure takes more than 30 minutes of the customer. Because the form has to be identified and tested by the manager operation and about 14 account holder signatures are taken on the account opening form. Some time the account holder does not take the required documents with him/her then first they have to take the required documents. That is why such king of accounts takes 1 to 2 days. ACCOUNT OPENING (General Instructions) The responsibility for account being regularly opened devolves upon the manager/ manager operation and no deposit (current, saving, fixed, short term or call deposit) can be opened without the authority of manager/ manager operation. A written application on prescribed form must be furnished and will be signed by manager/ manager operation after has satisfied himself of the prospective account holder by briefly interviewing him. With a view to ascertaining the bonafide of the new account opener, a letter of

thanks on form F-529 is sent on his/her address under certificate of posting enclosing there with a stamped self addressed envelope. No cheque book is issued to a new account holder until confirmation of letter of thanks F-529 and initial deposit is received except manager/ manager operation is personally satisfied and specially authorizes its issuances. In case where cheque book is issued prior to receipt of said confirmation, passing officers is exercised special vigilance at the time of withdrawal and make a reference to manager/ manager operation for authorizing payment. Confirmation, when received back from new customer, is checked with the respective specimen signature on record. Signature verified and filed with the relative account opening form with the envelope bearing the postal receipt. Copy of National Identity Card of person opening new account is taken and their numbers are recorded in relative account opening. No account is opened in the name of an undercharged insolvent. When the account is opened in the name of two or more persons they should be asked to sign the survivorship form-492 determining the mode of operation on their account.

ACCOUNT OPENING (Branch Procedure) Manager sees that particulars in the account opening forms signed by the constituent are recorded and forms are properly filed in a serial number of account together with all the relative documents. The number of account given on account opening form is noted on specimen signature card and on all the other necessary documents relative to the account. Every current, cash finance and PLS saving account is numbered in numerical serial order. For this purpose account opening and close register B127 is maintained separately for each category of account. Each account is advised the number allotted to his/her account by putting the same in each leaf of the cheque book, including the requisition slip inserted therein, issued to him by bank at the time of opening an account and thereafter. 39 Every account open is entered in the account opening, close register B-127 and the balance of running account drawn simultaneously. The closing of an account is noted in the remark column in the alphabetical index against the entry pertaining to that

account. Partnership letter, joint Hindu family letter, letter of authority to operate account and copies of partnership deeds, memorandum and articles of association of companies and rules of association and societies is filed with the account opening form. In order to ensure that no necessary formalities are overlooked, when an account is opened the account opening form and other necessary document is entered in the account opening and closing register B-127. The files containing account opening form and other relating document to operate an account is remain in the custody in the supervising officials. NEXT OF KIN ACCOUNT HOLDER For the purpose of maintaining the record of next of kin of the account holder in the event of the account remaining inoperative for a long period procedure is followed: At the time of account opening the account holder is advised to open a joint account so that there should not be any problem in the event of death of one of the account holder as the survivor would be able to draw the money without any problem. If for any reason an account holder insist on opening an account in his/her name he/she is requested to sign a letter of authority in favour of bank

stating that in the event of the bank not hearing from him for a period of three years the bank may advise for the existence of the account to named next of kin. The heirs of the deceased can then claim the balance in the account after fulfilling the prescribed formalities. In the event of the bank not being in contact with the account holder for the period of 3 years, on the expiry of such period the bank should write to next of kin, whose name and address is provided by account holder. The bank asks all existence account holders maintaining account in single name to fulfill the above requirements, however if an account holder does not want to avail above facility, there is no compulsion. Upon the death of one of the account holder, the balance of which is repayable to the survivors, the account is of course continue but the survivor or survivors is requested to transfer the balance into a new account in his/her or on their own name, a fresh account opening form etc being taken. When the balance is not repayable to the survivors the account is stopped and controlling office address in the matter. PARDANASHIN LADIES ACCOUNT HOLDER Pardanashin ladies who can read or write English Urdu or any local language is treated at

par with literate customer, provided that manager/manager operation personally satisfy himself that the lady understand the nature of transaction. The requirement of computerized national identity card is fulfilled as par practice. SPECIMEN SIGNATURE The system of recording specimen signature (constituent) must be such that no signature can be placed on record by an unauthorized person. All specimen signatures must be individually attested with full signature by the manager at the time they are recorded. Cabinet containing specimen signature cards is always under the lock of a supervising official. Specimen of signature is obtained from the depositor at the time of opening an account. Specimen signature is countersigned by the official of bank not below the rank of an officer. For illiterate person left and right hand rolled thumb impression duly witnessed and attested by the introducer on the account opening form and specimen signature card along with two recent photographs attested on the face by the introducer may be 40 obtained. One of the photographs is pasted on account opening form

and the other is on the specimen signature card duly attested by the manager. Thumb impression at the time of each withdrawal is put on cheque etc. signature on blank cheque is not accepted. MINOR ACCOUNTS No current account in the name of or on the behalf of a minor is opened without reference to the controlling office unless a guardian of the property of the minor is appointed under the guardians and ward act. The guardian is not allowed to draw on the account after the minor has come of age or after his/her death. A minor attains majority at the age of twenty one when: a. He is of Pakistani domicile b. A guardian of his/her person or property is appointed by the court c. His/her property in under the superintendence of a court of Ward A special account opening form F-570 is obtained and kept in separate file under the custody of manager or accountant. The date of attaining majority is noted at the end of the branch daily list. Cheques books is not issued on such account unless the adult account holder intends to sign himself or jointly and the minor.

In case of death of the adult member the money is automatically become payable to the minor but precautions for withdrawal is exercised. It is preferable if the money is paid to the minor in the presence of a witness. IRREGULAR ACCOUNT When a constituent does not conduct his/her account properly e.g. when his/her cheques have to be frequently returned for the lack of funds, his attention is drawn to the fact. If there is then no improvement, he should be directed to close his/her account and no further credits are accepted on it, if he fails to do. Irregularly conducted accounts are a source of danger to the bank and must not be allowed to continue. DORMANT ACCOUNT/ INOPERATIVE ACCOUNT/ UNCLAIMED DEPOSITS Current account not operated for 6 months and PLS saving account not operated for 1 year falls into the category of Dormant account. While current account not operated for 2 years and PLS saving account not operated for 3 years is fall in the category of inoperative account. DOCUMENTS ENCLOSED WITH ACCOUNT OPENING FORM Individuals

Copy of CNIC/NICOP.POC Copy of driving license in case CNIC is without photograph. Applicant photograph and CNIC copy attested by Gazetted officer in case of CNIC without photograph. Copy of ARC issued by NARA in lieu of CNIC for opening of Pak. Rupee Partnership CNIC of all partners. Partnership deed (certified copy). Attested copy of registration certificate with registrar of firms. Original authority letter favoring persons authorize to operate the account. In case the partnership is

unregistered, this fact Private/Public Limited Companies Certified copies of certificate of incorporation, Certificate of Commencement of business, Memorandum and Articles of Association, List of Directors. Power of Attorney/ Mandate (If required). 41 account only. Copy of service card/ evidence of employment in case of salaried person. Photograph in case of illiterate person. Copy of CNIC of next of kin. Zakat exemption

declaration/certificate. Evidence for exemption of account from levy of service charges. Proof of age in case of opening of an account with a minor. Declaration on prescribed format for opening of account of blind and visually impaired person. should be clearly mentioned on the account opening form. Undertaking from the partners involved for responsibility of conduct of account individually and jointly. Club, Societies and Associates Certified copy of Certificate

of registration, By Laws/ Rules and Regulations, Constitution. Resolution of governing body for account opening. An undertaking signed by all authorized persons when any change takes place in the persons authorized to operate on the account, the banker will be informed immediately. Trust Account Attested copy of Certificate of registration, CNIC of all the trustees. Certified copy of instrument of Trust. Agents Account Certified copy of Power of Attorney. Attested photocopy of

identity card of the agent. Executors And Administrators Attested photocopy of identity cards of executors/ administrators. Certified copy of identity cards Letter of Administration of Probate. CUSTOMER RELATION: Account opening desk not only opens the account of customers but also they collect the cheques to be cleared. Cheques collected then send to clearing section of the branch. Clearing section will be discussed in detail later in clearing section. Every person can open the account in the bank after fulfilling the prescribed rules by the bank. Customers are dealt in a good manner in the NBP Civil Lines branch at the account opening desk. More than 50% customer who come to the branch do not know how to fill the cash deposit receipt and cross cheque receipt that have to be cleared. Staff at the account opening desk is friendly and they provide the information to customer what

they need. But by the word of mouth of one customer, he said that the account opening procedure was easy before but now bank has made it difficult. By asking to the staff at account opening desk, they told me that earlier the bank do not require such kind of verifications but know the bank is doing this to protect itself.

POLICY MANUAL ON ANTI MONEY LAUNDERING

Security on Account Opening Form (Under KYC/ Customer due Diligence Requirements): 1 Customer has completely filled out the banks prescribed account opening form. Yes No 2 Specimen signature card application form are signed by the applicant in the presence of manager/ incharge deposit Concerned staff. Yes No 3 All required particular of account (such as complete mailing address, telephone number, CNIC are provided). Yes No 4 Next to kin column in case of personal account has been filled in. Yes No 5 Account opening instructions are clearly marked. Yes No 42 6 Details of other bank accounts have provided. Yes No 7 Applicant has provided his/ her full personal particulars. Yes No

8 All documents/ papers required under regulations/ rules have been obtained. Yes No 9 Attested copies of CNIC of applicant are with the branch. Yes No 10 Rubber stamp bearing narration that certify opening of account after meeting KYC pre-requisite has been stamped on account opening form. Yes No 11 Employers name and complete contact address has been obtained. Yes No 12 A reference from the customer employer giving the customers position / designation in the organization, total emoluments and length of service in the organization is obtained. Yes No 13 In case prospective customer is self employed, his / her occupation is noted indicating the nature of the occupation, place of practice and length of time in the present occupation etc. Yes No 14 In case of foreigners employed locally, copies of their passports have

been obtained to establish their status with a reference should invariably be obtained from the local employers. Yes No 15 In case of doubt a copy of entitys registration certificate (be it a sole proprietorship, a partnership, or a limited liability company) has been obtained directly from the relevant of office of SECP. Yes No 16 Complete name and address of partners, directors, office bearers or beneficial owners (in case of account of partnership) companies, corporations, societies, clubs etc have been obtained and recorded. Yes No 17 Bank has established evidence of all source of income of the account holder. Yes No 18 Account where there is a little personal contact with the customer is being reviewed on a regular basis to ensure that any change of address or changes in circumstance that have been noted are recorded. Yes No 19 As an additional measure, an annual review of all account is

undertaken to ensure that new information has been recorded to update the knowledge about the customer and their businesses. Yes No

SWOT ANALYSIS
STRENGTH
Custodian of government treasury Working as agent of SBP Job security for employees Main custodian of public money Government business owner Lender to the government agencies Public Confidence Sound financial foundation Highest profitability Vast operational network Recognition of hard work of staff through incentives

WEAKNESS
Beside a public bank it has the following weaknesses 43 Not fast service to the clients Less marketing expenditures

 Worst conditions of branches Outdated systems and procedures Delays in decision making Resistance to change Inadequate, poorly placed network technology Less share in import and export business Lack of proper advertisement & marketing of products

OPPORTUNITIES
Introduction of new technology Introduction of new products and services Develop an aggressive marketing plan Can lunch a marketing strategy to capture the business from its pee banks Can be number one in Pakistan Can offer new and innovative products to complete rest of the banks With proper planning can hunt more and more business from the public and private sector as people still trust over it. Leasing

THREATS
Less qualified staff in NBP Not fully computerized

 Competition with foreign bank Less participation in the capital market activities Use of traditional system of banking Political influence New products from private Pakistani and Foreign banks Inability to change Quality of human resources

Internal politics PRACTICAL EXPERIENCE I have covered following departments in NATIONAL BANK OF PAKISTAN civil lines branch gujranwala. Clearing Section Department
44

Accounts Section Department Billing Section Credit Department Government Section Department CLEARING SECTION OF BANK
"The transfer of funds from a branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving cash through "State Bank's

clearing house" OUTWARD CLEARING When the cheque from Bank goes to another bank for clearing then it is called outward clearing. Our National Bank of Pakistan branch sends the different instrument like payment order, cross cheque, Remittance for the purpose of clearing through two ways. LOCAL CLEARING (NIFT) S.C (Short Credit) NATIONAL INSTITUTION OF FACILITATION TECHNOLOGY (NIFT) SOURCE OF COLLECTION OF CHEQUE OR INSTRUMENT Accept the Cross Cheque or instruments from Account Holders. Accept the Cross Cheque or Remittance from our NBP local Branches ACCEPT INSTRUMENT FORM ACCOUNT HOLDERS STEP I Fill the transfer voucher then receipt is given to the account holder and voucher is kept. STEP II Three stamps is place. First cross stamp is placed in the front side, Second clearing stamp of next day date and third payees account will be realized. STEP III Enter all the instruments in the NIFT register in Local & Sialkot portion separately.

STEP IV Signed by the officer in the back side of every instrument. STEP V Made the NIFT card in which mention following things Branch Name, No of Instruments, Total Amount and signed by the Remittance officer. STEP VI Next day after clearing fanford came from Dist Court Sialkot in the Name of Our Branch. STEP VII Deduct the different type of bank charges from those entire people which submit the Instrument or cheque for the purpose of clearing and this instrument belong to Sialkot. According to following rate. 45 IN CASE OF INSTRUMENT OF NBP Items Charges Commission 0.16 % or Minimum Rs 50 Postage Rs 75 F.E.D 6 % of commission BANK CHARGES FOR OTHER BANKS INSTRUMENT Items Charges Commission 0.16 % or Minimum Rs 50

Postage 75 F.E.D 6% of commission STEP VIII o Fill the commission voucher as whole o Fill the transfer voucher postage as whole o Fill transfer voucher fro F.E.D as whole o After filling such voucher past the stamp of bank transfer and signed by the officer on all the voucher then transfer these voucher in particular account. ACCEPT CROSS CHEQUE OR REMITTANCE FROM OUR LOCAL BR. STEP I Place two stamp of such instrument, First stamp is place on the back side of each instrument which we collect from our NBP Local branches i-e civil line branch Gujranwala. Our Br Endorsement Confirmed For National Bank of Pakistan Main Br.civil line gujranwala MANAGER Second clearing stamp on the front side of the instrument and mention next day date in the clearing stamp.

STEP II Enter all the instruments in the NIFT register in Local & Sialkot portion separately. STEP III Signed by the officer in the back side of every instrument. STEP IV Made the NIFT card in which mention following things Branch Name, No of Instruments, Total Amount and signed by the Remittance officer. STEP V Next day after clearing fanford came from Dist Court Sialkot in the Name of Our Branch STEP VI Made the fanford in name of such NBP local branch which send these instrument DEBIT fanford send the meaning of DEBIT fanford is that our bank is transfer amount to another NBP Branch. 46 CREDIT fanford enter in our system. The meaning of CREDIT fanford is that we are decreasing our NBP General a/c because we send the amount to another branch. PROCEDURE OF CLEARING CLEARING Stamping

Cross Stamp Cleaning Stamp Payee,s Account Will be Realized

Fill Transfer Slip & Receipt Hand over To Client From Account Holder Enter in NIFT Register Separately Hand Over NIFT Agent Instrument Collection Source From NBP Local Branches Stamping
Clearing Stamp Our Branch Endorsement Confirm

Signed By Officer Separate Transfer Slip

& Cheque NIFT Card INWARD CLEARING OUTWARD CLEARING 47 NEXT DAY PROCESS INWARD CLEARING Following requirement fulfill Check all the stamp required Check balance of particular account Check the Drawer signature Check the cheque post dated or out dated Check amount in words and figures Advice received from issuing Branch Payment stopped by the drawer Note: If all the above mention requirement fulfill then cleared the cheque or vise return the instrument through NIFT CHEQUE RETURN FROM S.C (Short Credit) When the account holder submit the instrument which is out of station then such instrument send for clearing through S.C(Short Credit) Some of the

Cheques are not cleared. The relevant bank returns these cheques with MEMO that document explain what are the main reason of cheque return. In case of Cheque Return from S.C (Short Credit) then bank deduct the service charges from such account holder account which is submit the cheque in our branch. Fill the Debit voucher in which following things mention o Name and Account of particular person o Description (S.C No 425 return charges recovered) Fill the Credit Voucher for (Commission) Fill the Transfer Voucher for ( Postage) Enter this cheque in the cheque return register in which mention following things o Name and Account Number o Date which is mention in the cheque o Instrument Number From NBP Local Branches From Account Holder Made Fanford in The Name of Our NBP Local Branch

Transfer Clearing Amount on Relevant account Filling Voucher Commission, Postage, F.E.D Deduction of Bank Charges 48 o Reason return of cheque o Amount PROCESS OF CHEQUE RETURN (S.C)

Commission charges (sample format)

Sr. No. A/c No Amount Commission FED Postage Total Net Amount 1 50.00 3.00 75.00 128.00 128.00 2 50.00 3.00 75.00 128.00 128.00 3 50.00 3.00 75.00 128.00 128.00 4 50.00 3.00 75.00 128.00 128.00 5 50.00 3.00 75.00 128.00 128.00 6 50.00 3.00 75.00 128.00 128.00

7 50.00 3.00 75.00 128.00 128.00 0.00 TOTAL 0.00 350.00 21.00 525.00 896.00 896.00

CLEARING SECTION TABLES USED TO KEEP RECORD

ORDINARY INWARD Ordinary Inward table contains the records of all those cheques that are drawn on our branch but are presented in the other branches (HBL, ABL, Bank Alfalah, Faysal Bank etc). These all cheques are sent to our branch through NIFT (National Institutional Facilitation Technologies). NIFT collected all cheques from the banks (Members of NIFT) from all over the country and then send the cheques to the required bank branch. The cheques that are drawn on the NBP Civil Lines Branch Gujranwala are sent to the Civil Lines Branch through NIFT in the Morning. Then the branch clear all these cheques and if any cheque is found incomplete or there is not enough balance in the account of the drawer of cheque then this cheque is returned to the sending branch. ORDINARY OUTWARD

CHEQUE RETURN FROM

ENTER IN CHEQUE RETURN REGISTER

Name and Account Number Date which is mention in the cheque Instrument Number DEDUCTION OF BANK CHARGES

Postage commission FILL THE VOUCHER OF RELEVANT ACCOUNT

49 Ordinary Outward table contains the record of those cheques that are collected in our branch. Our branch customers have different banks cheques that they get from their business customers. Then these cheques are collected to transfer the amount from the drawers account to the drawees account. These cheques are of

different banks from the different locations. Our branch records these cheques in the ordinary outward table with a/c number, amount and the instrument number. Then these cheques are sent to the different banks on which these have been drawn through NIFT. INTERCITY CLEARING INWARD Intercity includes those cheques that are drawn on the NBP branches from different cities of the country. Intercity Inward means that the cheques that are drawn on our branch but these cheques are presented in other NBP branches from different cities. Same bank branches cheques are named as intercity clearing inward. These intercity cheques are sent to our branch through NIFT in different envelopes with the names of the city from these cheques have been collected. Intercity clearing inward table keeps different tables of different cities. For Example, a person who has to make payment to the other person but he makes his payment in the form of cheque. The second person will present this cheque to his bank (NBP branch). Suppose his bank is in Islamabad. His NBP bank will send this cheque to our NBP branch in Gujranwala through NIFT. Then these kinds of cheques are recorded in intercity clearing table. When all intercity cheques are recorded then the credit voucher is

prepared with the whole amount of all the intercity cheques. INTERCITY CLEARING OUTWARD Intercity outward means we sent the cheques out of city branches. These cheques are drawn on out of city NBP branches but are presented in our branch. Then our branch sends these cheques to the drawers account holding branch to clear the amount of the cheque. SAME DAY CLEARING Same day clearing table contains the record of those cheques or other instruments that are drawn on other NBP branches but these branches are exist within in the city. Because the drawers bank branch is within the same city that is why these cheques are cleared in the same day. The amount of the instrument is debited or credited in the same day. The grand total of the instruments is obtained and then a credit voucher is prepared under the head of Clearing Adjustment Account. And on the next day a debit voucher is prepared with the same amount under the head of Clearing Adjustment Account. INPUT TABLE Input table contains the amount of the different NBP branches that we have to balance

with them. This table contains two sides: Debit side Credit Side The amount with the different branches of NBP is cleared through fanfolds. In the morning our branch gets the debit and credit amount of different NBP branches with our branch. In the afternoon our branch get the amount returned detail through NIFT and is recorded in the return column of the input table. After recording returns we get the Net Difference amount with the other branches. We also get the fanfold (Received fanfolds) to balance the amount with the other NBP branches. After completing the input table branch prepare the F-15 and F-16 fanfolds so that these amount can be sent to the different branches. S.C FANFOLDS S.C Fanfolds means short credit fanfolds. S.Cs is received from those branches that do not have the membership with the NIFT. So these branches have to send the cheques and other instrument by making S.Cs through DAK (by post).Those kind of branches that do not have membership with the NIFT are also sent the cheques and other instruments by making S.Cs through DAK (by post).

50 RESPONDING ENTRIES Responding entries table contains the various NBP branches clearing adjustment outstanding entries paid to our branch. These responding entries are made in the result of receiving the fanfolds from various NBP branches. After completing the entries a credit voucher F-51 is prepared under the head of clearing adjustment account. SUMMARY At the end of the day our branch receives a fax from the State Bank of Pakistan head office Karachi. The debit and credit amounts given in the fax must match with the amounts in the clearing summary of our branch. This summary contains the balances of clearing received and clearing delivered amounts. At the end a hard copy of input table, ordinary inward, ordinary outward, responding entries, same day clearing, intercity clearing and summary are kept as record in the files.

ACCOUNTS DEPARTMENT
Following activities are included in accounts department: Account opening Issuance of check book Receiving of cheques

Salary formation

Account opening:
The most important fuction of accounts department is account opening. In which there are many technicalities are involved. While working in this department I gained a complete knowledge of account opening which is necessary to recover any descripency in transections.

Requirements for opening a account

1 copy of NIC 1 copy of NIC of next of KIN verification of NIC (account holder) 1 copy of utility bill. Letter of recommendation from concerned department(GOVT) (in case of govt servant, salary account ) TYPES OF ACCOUNT: Current PLS saving PLS SNTDR PLS term FC BBA

Premium saver NIDA Call deposit There are two accounts which are mostly opened they are current and PLS saving account.other accounts are rarely open. Items involved in account opening: 51 Account opening form Signature speciman card Letter of thanks (F-529) Pay-in-slip (cash) Procedure After completion all requirements for account opening. I fill the information on account opening form by verifying the NIC. Then I attached a signature specimen card for signature verification.then I take the signature of client on 14 places on account opening form. Then this form is verified and allowed for operation manager. Then next step is to enter all information on register(manualy).After assigning the account number there is requirement to deposit cash in account minimum RS.100 for that we have cash deposit voucher(pay-in-slip). Then I attached a letter of thanks F-529 with accoutn opening form

which will be dispatched by our branch dispather (Muhammad Shahzad Warriach). letter of thanks F-529 is basically for address confirmation of client. I have attached a account opening form and signature speciman card with my report.

Issuance of check book:

Previously bank was issuing check books manualy by stamping the account number and name of person.But a banker instituion called NIFT(national institution of facilitation technology) provide us service and entitled the reponsibility to provide us printed cheque books from KARACHI head office.

Features of printed check book:

Printed name of account holder. Printed branch name and code. Printed cheque numbers.

Procedure
For the purpose of issuing Cheques book customers come to me and ask for Cheques book by providing requisition slips available in Cheques book. Previously I just verified the signature of account holder from person designated OG-11 SANA-ULLAH CHEEMA. Then I fill the pay-in-slip for cash of amount 30 for 10 pages cheque

book, RS.75 for 25 pages cheque book and RS.300 for 100 pages cheque book. Then I entered the name, account number and Cheques number in register and get the signature of account holder. But now procedure has changed due to NIFT services. For issuance of cheque book it is required to submit your cheque book requisition before issuance. After receiving cheque book requisition from customer I verify signature of customer (account holder) from banks designated employee and I instruction to account holder deposit cash in bank security document account 4211-6. Then I entered his account number in NIFT provided slip to request for new cheque book in printed form from KARACHI head office.

PROCESS:(first time issuance)

For issuing the cheque book first time after account opening. When customer came to me and ask for cheque book and provide me half part of F-529 with signature then I firstly check the register in which there will be entry of receiving of F-529. if that letter has been 52 received then I fill the form of first time issuance of cheque book and got the signature of client OG-11 and operation manager along with account number and customer name.

after that I stamp the cheque book with civil lines branch and code along with account number and write the account holder name. then I do entered checques numbers, account number and name of account holder in register. I got the signature of customer on register with providing the cheque book.

Receiving of cheques:
In this operation of accounts department there is receiving of cheques from customers. Firstly I fill the pay-in-slip (red-voucher) and write date, account number in which balance is to be transfered, amount in figures and words, checque number. Then I stamp cheque with crossing stamp to made that cheque of NBP property. If cheque is of same branch (civil lines) then I put the bank transfer stamp on cheque. And stamp of NBP civil lines branch on both parts of pay-in-slip. After that there will be stamp of receiver of that cheque and after signature that receipt is proided to customer for their record. After receving cheque I enterd those cheques in manual register called SUBSIDARY REGISTER.in which I enterd name,account number and amount of cheque. After entring all cheques those cheques are forward to clearing department for clearing.

Salary formation:
Another function performed by accounts department is salary formation. Firstly i enterd the cheque numer, date and amount in subsidary register. After that I develop the fanfold for responding branches. The procedure is below:

PROCESS:
Firstly I analyze the summary of salary.there are three types of bank involded in salary first are other branches of NBP, second other banks like HBL,ABL,MCB and sundry party (civil lines). For other branches of NBP I made fonfold F-15 (credit voucher) in which I write date of origination, our branch code and name, amount in figures and words, responding branch name along with code, TR code which is 74, instant number, and particulars. For other banks, I made red-voucher(credit) by filling date, name of bank, amount in figures and words, and contra(account number). Along with that I made F-137 by filling branch name, code , amount in figures and words, and request for credit. For sundry party I made red-voucher (credit) by filling date, amount in figures and words and contra(account number). I have attached all types of above mentioned vouchers and fan-folds

with my report.

CASH card issuance:

Cash card issuance is also the responsibility of administration department.For cash card the customer must have an account in our branch and a copy of CNIC for getting the cash card. After filling the cash card from a photo copy is given to the customer and that form is to be send to head office in KARACHI for approval and issuance. After receiving that card from head office that card is send to customer on his/her address. Following is the cash card application form:

FOREIGN EXCHANGE SECTION

The money which has received from abroad is to be paid here in western union department of NATIONAL BANK OF PAKISTAN. We use a software called SAMBA for making payment of foreign currency. This software is online and have no chance of fraud. All the payments will be given to those persons in who's name the sender has send the money. And no other person will be able to collect the payment. 53 REQUIREMENTS OF PAYMENT There are following things are require for the payment of western union. Photo copy of N.I.C of receiver attested from 2 persons the

incharge of western union or any authorized person of the bank MTCN code Receiver name Total amount After checking this information I start the procedure on the western union software. I show all the procedure of payment of western union step by step.

PROCEDURE OF PAYMENTS
To sign on we need to enter the user ID and Password of software called SAMBA. This page is about the main menu in which the operator selects the nature of transaction. The whole transaction contains 3 steps:

1st step:
The real transaction of receiving money will start form this page. After clicking this tab a page will appear on which I enters the country name from where the payment has come, full name of sender, the currency type and the amount that is to be received. Then I press enter key. Now the next dialogue box will appear in which I have to enter following information. MTCN number provided by receiver.

 Full name of sender Full name of receiver Then this page will automatically appear through which we can match the sender and receivers name and the amount given by the receiver. If the information is true then I start the next procedure.

2nd step:
After checking all information, I inter the amount in the box of amount matching with payout amount. Then he asks me about the submitting of transaction. Then I click on yes. Than the NIC Number of receiver will be enter. In customer information the complete address, name of city, country name of receiver will be entered and the contact number will also be entered.

3rd step:
This page is the slip to receive money through Western Union. Here we take three print of payment slip. I take customer signature on the three slips. I.D photo copy of receiver attaches with one slip and send to the incharge of the western union. Three signatures are required on these slip. Two signature of incharge of foreign exchange department and 3rd signature are from any authorized person of the bank.

Token issuing:
Customer comeback to us after completing the signature. One copies of slip attach with I.D of customer to save as record. I write a token number on the token and send this slip 54 to the casher. And 3rd copy with token I give to the customer. Then customer show token to the casher and get the money. When the slip is issued the customer (receiver) is asked to sign the slip and the photocopy of ID card is attached with the slip. The officer signs it and apply stamp on it. Finally the token is given to customer to take his money from the cash counter.

BILLING SECTION DEPARTMENT

1) DEMAND DRAFTS If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBP's Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch 2) MAIL TRANSFERS Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market. 3) PAY ORDER *

NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive. 4) TRAVELER'S CHEQUES Negotiability: Pak Rupees Traveler's Cheques are a negotiable instrument Validity: There is no restriction on the period of validity Availability: At 700 branches of NBP all over the country Encashment: At all 400 branches of NBP Limitation: No limit on purchase Safety: NBP Traveler's Cheques are the safest way to carry our money 5) LETTER OF CREDIT NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions. BILLS SECTION RECORDS REGISTERS TYPES 1. Bills section maintains following types of records: 2. Online

3. End of day 4. DD/ GDD balance 5. Fanfold dispatch register 6. Pay order register 7. DD issue register 8. GDD issue register 9. MT issue register 10. TT issue register 11. Draft advice dispatch register 12. GDD advice dispatch register 55 13. Bank draft advice received register 14. GDD advice received register 15. MT received register 16. DD payment register 17. GDD payment register 18. DD paid ex-advice register 19. GDD paid ex-advice register 20. Pay order weekly balance 21. DD/ GDD monthly balance 22. Daily general ledger abstract CREDIT DEPARTMENT Credit section of the bank deals with SME (Small and Medium

Enterprises), Corporate and Commercial financing. CHARACTERISTICS OF GOOD SECURITY PERMISSIBLE. MANAGEABLE. ENFORCEABLE. SUFFICIENT. MARKETABLE. SAFE (FOR STORAGE) STABLE. IN FORM. IN VALUE BASIS OF VALUATION OF COLLATERALS Nature of security Basis for assessment. Stocks. Imported Raw material CFR Value Local Raw Materials / Basic Support price or market price whichever is lower Commodities (Cotton, Rice, Wheat etc Ginned Cotton KCA rate for the relative grade of cotton. Sugar (to traders) cost or market price whichever is less.

 Finished goods Ex Mill rate (net of GST). (for financing to industrial units) Finished goods to traders. Fair market price. Fixed Assets: Land. Building & Plant/Machinery Forced sale value assessed by e valuators approved by Pakistan Banks Association in terms of Prudential Regulation. Financial Securities: Insurance policies. Latest Surrender value. Pak Rupee Deposits / Financial Par Value securities where profit is paid periodically. National Saving certificates / Other Existing Redemption value. financial securities where profit is paid on maturity. Shares of listed companies. Current market price. $ Bonds and other securities Latest Inter Bank rates for the respective denominated in currencies. Currencies other than Pak Rupees. 56

SECURITIES AGAINST CREIDT FACILITIES

 Hypothecation of stocks. Hypothecation of Book Debts / Assignments of Receivables. Trust Receipts. Joint Registration of vehicles. Pledge of goods. Mortgage / Charge on properties. Lien / pledge of Financial/Stock Market Securities etc. Assignment of insurance policies. Financial Guarantees /Stand by Letters of credit. Personal Guarantee / Corporate Guarantees / Cross Guarantees. TYPES OF FINANCIALS SECURITIES Deposit Accounts. Term Deposit Receipts. Certificates of Deposit. NIT Units / Mutual Funds Certificate National Saving Certificate etc. Defence Saving certificate. Special Saving Certificates. Regular Income Certificate. National Prize Bonds. US $ Bonds Registered / Bearer. Treasury Bills.

 Federal Investment Bonds Pakistan Investment Bonds. Shares of Listed Companies. Corporate bonds (TFC/CPs etc) CHARGE Where immovable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have ta charge on the property and all the provisions hereinbefore contained which apply to a simple mortgage shall, so far as may be, apply to such charge (section 100 of transfer of property Act 1882). MORTGAGE A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability (section 58 of transfer fo property Act 1882). TYPES OF MORTGAGES. Simple mortgage. Mortgage by conditional sale.

 Usufrucuary mortgage. English mortgage. Mortgage by deposit of title deeds/An entry in the Record of right Anomalous Mortgage. First and subsequent mortgages. Sub mortgages. WHY TO COMPLETE DOCUMENTATION AND CREATE THE SECURITIES? To educe evidence for the purpose of proving facts leading to establishment of he Banks Claims and rights over the suit money and the underlying securities available to the bank How do the documents help in providing a better evidence Section 102 of Qanoone Shahadat order 1984 57 When the terms of (a) contract, or of agreement, or of any disposition of property have been reduced tot eh form of a documents, and in all cases in which any matter is required by law to be reduced to the form of a documents, no evidence shall be given in proof of the terms of such contract, grant or other disposition of property, or of such matter except the documents itself, or secondary evidence of its contents in case in which secondary

evidence is admissible under the provision herein before contained. Section 103 of Qanoone Shahadat Ordinance 1984. when the terms of any such contract, grant or other disposition of property or any matter required by law to be reduced to the form of a document have been provided according to the last articles, no evidence of any oral agreement or statement shall be admitted, as between the parties to any such instrument or their representatives in interest for the purpose for contradicting, varying, adding to or sub structuring from, its terms. LEGAL REQUIREMENTS FOR DOCUMENTATION Section 59 of Transfer of Property Act, 1982. Where the principal money secured is one hundred rupees or upwards, a mortgage other than a mortgage by deposit of Title deeds can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses. Section 18 (2) of Financial institutions (Recovery of Finances Ordinance 2001 Finance agreements executed by or on behalf of a financial institution and a customer shall be duly attested in the manner laid down in article 17 of the Qanoon e Sahadat order 1984.

 Section 17 of Qanoone-Shahadat Ordinance 1984 In matters pertaining to financial or future obligations if reduced to writing the instrument shall be attested by two men, or one man and two women, so that one may remind the other, if necessary, and evidence shall be led accordingly. ... Section 18 (1) of Financial institutions (Recovery of Finances Ordinance 2001) No Financial institution shall obtain the signatures of a customer on banking document which contains blanks in respect of important particulars including the date, the amount the property or the period of time in question. NATURE OF DOCUMENTS CUSTOMER RELATED DOCUMENTS. FACILITY RELATED DOCUMENTS. SECURITY RELATED DOCUMENTS. REGULATORY / MISCELLANEOUS DOCUMENTS. CUSTOMER RELATED DOCUMENTS Proprietary concerns. Declaration of proprietorship. Partnerships Copy of partnership Deed / Declaration of Partnership.

Form C for Registered Partnerships. Companies. Certificate of incorporation. Memorandum & Articles of Associations. Borrowing Resolution. List of Directors + Form 29 Certificate of commencement of Business or certificate of conversion from Private to Public Limited company. (For Public Limited Companies only) Any other document required to meet special requirements of a particular case. 58 FACILITY RELATED DOCUMENTS NATRUE OF FACILITY DOCUMENTS REQUIRED Letter of Credit (LC) Application and Agreement for inevocable LCs (IB-8) Alongwith other transaction related documents. Letter of Guarantee / standby Counter Guarantee (IB-30) Letter of Credit (SBLC) Agricultural Finance DP Note Agreement for Agricultural Production / Development Finance (IB-7) Cash Finance / Running DP Note (IB-I)

Finance FATR/FIM Agreement for Financing for Short Medium / Long terms on markup basis (IB-6) Demand Finance DP Note. Agreement for financing IB-6A) FAPE I/II/G DP Note. Agreement for financing for Short / Medium/Long term on mark up basis (IB-6) LC/Contracts under lien. Undertaking UT/DE I / II. Certified FE statement. IBP /FBP on account DP Note. Letter of Buy Back Cum Indemnity (IB-9) Agreement for Discount/Purchase of Bills (IB-20). Export documents. Foreign Currency DP Note. Financing Under FE-25 Financing cum Buy Back Agreement. Export LC Contracts under lien for preexport finance. Export documents for post Export Finance. Term Finance Certificate TFC /CP Investment Agreement. (TFC) / Commercial Papers TFCs CPs Alongwith verified transfer deeds.

(CP) Financing. Syndicated Facilities. Syndicate leaders confirmation as to completion of condition precedent documents. Copies of Syndicate Finance agreement and security documents. Syndicate Lawyers vetting on documentation. SECURITY RELATED DOCUMETNS NATURE OF SECURITY DOCUMENTS TO BE OBTAINED. Hypothecation Letter of Hypothecation (IB-25) and stock report. Trust Receipt. Trust / deed of Assignment and acceptance by the respective debtors. Assignment Letter / Deed of Assignment and acceptance by the respective debtors. Pledge (Stocks) Letter of pledge (IB-26) and stock report. Pledge / Liens on Deposit Marketable securities (NSCs PIB/FIBs, Accounts. TFCs etc) Government securities Letter of Lien / set off IB-28) and shares etc. 59

 Mortgages. Memorandum of deposit of title deed or Mortgage deed as the case may be alongwith following property documents. o Title Deed. o Non Encumbrance certificate NEC) search certificate. o Forced sale valuation report by PBA Approved valuers) o Approved site building plan. o NOC for creation of mortgage, if applicable. o Fard Jamabandi / certificate from the relative authority/department showing ownership of mortgagor authority / department showing ownership of mortgagor and the banks encumbrance on property. GPA and agreement to mortgage (where required). agreement for sale and buy Back of marketable securities IB-31) Confirmation of banks treasury & CDC activity report in case of shares. Charges on assets owned Charge certificate issued by SECP by companies. Form X/XVI and security Creating documents.

Search report depicting creation of charge. Charges on assets owned charge creation certificate and Agri Pass Book incase of Agri Financing. Registration of Motor Joint Registration of Vehicles. Vehicles. Financial Guarantees. Corporate Guarantee backed by the Board Resolution and provisions in Memorandum & Article of Association. Personal Guarantee. Personal Guarantee (IB-29) + Personal Net Worth statement. (Barring few exceptions. Personal Guarantee of all directors of Private Limited companies is a mandatory requirement. Personal Guarantees of third Party security providers are also recommended to be obtained. All tangible assets held Insurance Policy and Premium Paid Receipts as security. Any other document required to meet special requirements of a particulars case. GENERAL GUIDELINES FOR COMPLETION OF CREDIT/SECURITY DOCUMENTS. To ensure that the documentation is appropriate and sufficient, the documents should.

 Be in the formats prescribed / approved by the bank. Be signed by the authorized signatures, using Rubber stamp for a on behalf of --- where applicable. Signatures are to be verified from the specimens held by the bank. Carry name and title below signatures of the executants. Be witnessed to meet the requirements of section 17 of Qanoone Shahadat order. 1984. Be signed on all pages. Carry authentication of all cuttings / over writings. Not carry any date below signatures other than the one appearing in the text of the documents. Be prepared on Non Judicial Papers or otherwise carry stamps of adequate value. The revenue stamps (where applicable) should be properly cancelled under signature stamp etc. Be co executed on the Banks behalf where required e.g. Buy Back Agreement. 60 Be dated subsequent to the dates of application for Loan. Board Resolution and date of approval etc. CARE No stamp using the name of the relevant concern is to be used

on Personal guarantees. ACCOUNTING ENTRIES MADE BY CREDIT DEPARTMENT On the due date to receive the mark-up amount from the customer the bank makes the rough entry as follow On Due Date Mark-up receivable a/c Dr PLS income a/c Cr When mark-up amount is realized Current account Dr Mark-up receivable Cr When the due date starts, the customer has 90 days to pay his markup amount. But if the customer does not pay his mark-up up to 90 days, the bank makes the following entry. When Customer Becomes Defaulter Income a/c Dr Reserve a/c Cr

HUMAN RESOURCE DEPARTMENT

(DUTY LIST) Following Duties are allotted to staff members and they are instructed to carefully note their duties/foot note and complete handing over / taking over the charge of

respective seats / duties on or before 13-02-2009 before leaving the office and perform their duties with full spirit & devotion. Sr. # Name Designa tion Job Description 1. Mirza Amjad Baig OG-I Manager 2. Munir Ahmed Virk AVP Operations Manager 3. Muhammad Akhtar OG-II Compliance Duties as Per Head Office Instructions. Pre-review of documentation of all Advances on Disbursement / Proposal. Processing of Inspection Audit Remarks Sheet and Clearance Certificate, i.e. Preparation of Clarence Certificate / Remarks Sheet Rectification of Inspection / Audit and Daily Compliance Sheets. Reconciliation of NBP General Account. 4. Mazhar Hussain Butt OG-II Proper maintenance of record of undelivered ATM cards received from H.O / Retail head R.O Gujranwala. He should collect all relevant ATM Cards from operation manager & keep in his safe custody for onward delivery

to respective customer. Inward Dak Test key part-I Verification authorized signature on relevant bank instruments. Fax Operator .Operator branch telephone exchange , Swift operator Any Other assignment by Operation Manager / Branch Manager. 61

Duty / Assignments noted.

Muhammad Akhtar Mazhar Hussain Butt OG-II OG-II HR SECTION 5. Ghulam Abbas OG-II / MTO (HR Development & Personal Section) 1. He will be responsible to conduct the Job Analysis of the branch. 2. He will be responsible to conduct/determine skill Gap Analysis of the employees. 3. He will be responsible for pay-for-performance implementation and handle all related issues. 4. He will be responsible for effective implementation of

Performance Standards as per laid down procedures. 5. He will be responsible to assist in Manpower Planning Exercise. 6. He will be responsible to update HRIS of the branch. 7. He will be responsible to coordinate with Regional Office for the effective implementation of Employee Mentoring / Communication Programs or any other program. 8. He will be responsible to maintain staff rotation records within the branch. 9. He will be responsible to coordinate Training programme. 10. Coordinate with Regional Office regarding the effective implementation of TNA for employees development. 11. Maintenance of all HR related records of Executives/Officers/Staff posted at branch. 12. Preparation of Seniority lists. 13. Correspondence relating to Temporary Employees of the branch and maintenance of their list. 14. GHS/VHS correspondence, if any. 15. Preparation/processing of appraisals of Executive/officers/Staff posted at the branch. 16. Preparation of all returns/statistics of staff position to

Regional Office/Head Office. 17. Processing of Audit & Inspection related to HRM Section of branch. 18. Finalization of payments, salaries/perks and all kind of benefits pertaining to human resource. 19. He will be responsible for processing/correspondence regarding Encashment of LPR/Optional Retirement of Officers/Executives/Staff. 20. He will be responsible for fixation of pay on promotions and revised salaries of Executives/Officers/Staff posted at branch. Employee Welfare & Benefits Section. 1. He will process staff loans/medical Bills & Facilities/TA Bills to Employees and their dependents. 2. He will follow-up pending cases with RO/HO relating to HR. 3. He will be processing of Medical Bills & Facilities/Hospitalization Bills of retired employees. 4. He will maintain all cases/correspondence files/books pertaining to this section 5. He will process all cases of Educational Stipend, 62

Marriage Grant, Honorarium for securing 1st position/Hafiz-e-Quran, Transfer Grant, Funeral Charges, office Work expenses and monthly subscription to newspapers/ journals/ magazines/ periodical. 6. He will be responsible for preparation of austerity statement. Frauds & Forgeries. 1. He will be responsible to look after all cases relating to Fraud, Forgery / Dacoity cases pending with Govt/Law enforcement Agencies or Regulators. 2. Preparation/presentation of all ripe cases before the competent authority at Region/HO for final decision. 3. All allied/related correspondence with regard to above assignments and any other duties to be assigned to him/her by his/her superiors. 6. Sadiq Jamil Pasha OG-I He is responsible for Rectification of daily compliance irregularities. Coordinate for Regional / Surprise / Annual / SBP inspection / Audit. Any other duty/assignment assigned by the Manager/Operations Manager.

Duty / Assignments noted.

Sadiq Jamil Pasha Ghulam Abbas OG-II OG-II / MTO 7. Mukhtar Ahmed Incharge Accounts Department OG-I Preparation Of Monthly / Quarterly / Half Yearly And Annual Closing Returns Pertain To Operation Group And SBP. Reconciliation of NBP General Account Incharge Dead Stock / Maintenance of Dead Stock Account Incharge Stationary Account / Maintenance of Branch Stationary Account. Incharge Old Record Calculation of Interest on NBP General Account Calculation of Commission on Govt. Receipt / Payments / G.DD. Time to Time Queries / Statements Required By R.O / H.O or from any other Branch. He Will Be Personally Responsible For Movement Of Any Voucher / Book / Record Pertaining To Old Record

In His Custody. 8. Muhammad Aslam Nadeem OG-I Checking / Signing daily Clean Cash / Abstract / General Ledger Checking & dispatch of F-21 A NBP General Account Maintenance of SBP Account Reconciliation of SBP Account with H.O / SBP Gujranwala. Any Other assignment by Operation Manager / Branch Manager. Maintenance of Voucher Register, Analysis Register and all other Register and Books Relate to Clean Cash. He Is Responsible To Hand Over All The Daily Voucher ACCOUNTS DEPARTMENT 63 / Record To Incharge Old Record Under Proper Acknowledgment. He will supervise the daily transfer scroll punching, clean cash punching and execution end of day program.

Special Note.
He will be held responsible personally for unreconciled

NBP General Account Entries if pointed out in List A and List B due to poor checking of the same and penalty imposed by SBP. 9. Ghulam Mustafa Messen ger Messenger Duties in Old Record / Branch Stationary Department. Note. The Incharge Accounts and officer shall be held responsible for any penalty imposed by SBP due to negligence / non completion of work / books and balancing. The both officer will monitor all heads of Accounts and all other matter for well in time reporting monthly, quarterly, annual return to controlling office.

Duty / Assignments noted.

Muhammad Aslam Nadeem Mukhtar Ahmed OG-I OG-I Ghulam Mustafa Messenger ADVANCES 10. Abid Tufail Incharge Credit Deptt. Note.

Departmental Head will be responsible for rectification of inspection / Audit irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet / clearance certificate. OG-III Branch Credit Officer Branch Cad Officer Monitoring of all credit portfolio of the finances. Passing of Cheque in all Finances with in drawing powers jointly with Operation Manager. Proper documentation of all finances before disbursement of Fresh / Renewed Accounts. Maintenance of All Finance / SME / Retail Documents & Proper Custody There Off. Proper Checking / Maintenance of Ledger, Books and DTRS of Fianc Accounts.

 Issue / Payment Bank Guarantees Litigation and Proper Follows up of General Advances / General Banking cases and maintenance of their files and records Waiver / Write Off / Suit Files Proposal. Follow Up Litigation Cases Checking Of Daily DTRs and Non-Financial Transactions of the Department. NADRA Verification (VERYSES) of advances accounts. Any Other Assignment by Operations Manager / Branch Manager. 11. Hassan Akram OG-II / MTO He will assist Branch Credit Officer in following areas. He will assist the Incharge Credit for maintenance of vouchers, books, proposals. Documentation and disbursing of commercial / cash finance / SME / Running Finance / Demand Finance ( General) / Small Finance / Corporate Finance under supervision of the incharge credit.

 Account opening of all type of Finances. Maintenance of law charges register Maintenance of other Sundry liabilities registers. Write off / Waiver off Proposal of General Advance. 64 Any Other Assignment by Operation Manager / Branch Manager / Credit Officer. 12. Taimur Javed OG-II / MTO He will assist the Incharge General Advances and Retail Incharge as and when needed. Preparation of e-CIB. Passing of all advances debit / credit vouchers and Cheques of General Advance and in Retail Banking jointly with Operations Manager in absence of Incharge Retail / General Advances. Monthly / Quarterly / Half Yearly / Annual Closing Returns. Balancing of all Finance Books / Accounts. Time to Time Queries / Statements Required by R.O / H.O or from any other Branch Weekly / Monthly / Quarterly Balancing of all

Accounts / Books. Any Other Assignment by Operation Manager / Branch Manager / Credit Officer Note. The Incharge Credit and officer shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. The both officer will monitor all heads of General Advances and all other Advances / items for well in time reporting monthly, quarterly, annual return to controlling office. 13. Muhammad Ahmed Butter Incharge Retail Deptt. Note. Departmental Head will be responsible for rectification of inspection / Audit irregularities of his department and coordinate with branch compliance

officer for submission of remarks Sheet / clearance certificate. OG-I Retail Officer Passing of all advances debit vouchers for advance in Retail Banking jointly with Operations Manager. Processing officer / Retail Deptt. NBP Advance Salary / Saibaan Preparation of all monthly, quarterly, half yearly and annual closing returns pertain to retail banking Balancing and maintenance of books, register & DTRs. Payment of NIT / NBP / PTCL dividend / shares subscription. Preparation of proposal for Retail banking Recovery officer for defaulters of Retail Banking Write off / waiver off proposal of Retail Banking. Weekly / monthly / quarterly Balancing of all Accounts / Books. Litigation follow up Retail Any Other assignment by Operation Manager / Branch Manager / Credit Officer.

Note: The Incharge Retail and officer shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. The both officer will monitor all heads of NBP Advance salary, NBP Karobar, Saibaan, Ghar ghar TV and all other Retail items for well in time reporting monthly, quarterly, annual return to controlling office.

Duty / Assignments noted.

Abid Tufail Hassan Akram OG-III OG-II / MTO RETAIL BANKING 65 Taimur Javed Muhammad Ahmed Butter MTO/OG-II OG-II Foreign Exchange Department 14. Muhammad Afzal Incharge F. Exchange Deptt. Note. Departmental Head will be responsible for

rectification of inspection / Audit irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet/clearance certificate. OG-I/ MTO Handling of foreign Currency deposit Passing of FEX Cheques jointly with Officer in Foreign Exchange. Joint signatory of Western union / Samba Payments. Foreign Currency Account Opening. Exports. SBP Export re-Financing Nostro reconciliation FET reporting Supervisor Swift

 Preparation of all monthly, quarterly, half yearly and annual closing returns pertain to Foreign Exchange Checking of daily DTRs and non-financial transactions of the Department. Weekly / monthly / quarterly Balancing of all Accounts / Books. Any Other assignment by Operation Manager / Branch Manager 15. Syeda Ruqia Ansar OG-II / MTO Import She will assist the Incharge FEX for proper maintenance of books and balancing their off. Passing of all vouchers pertain to Home remittances Export and others jointly with Incharge Foreign Exchange / Operation Managers. Joint signatory of Western union / Samba Payments. Home Remittance FET reporting

 Preparation of all monthly, quarterly, half yearly and annual closing returns pertain to SBP recording F.E.X transaction. Weekly / monthly / quarterly Balancing of all books. Any Other assignment by Operation Manager / Branch Manager / Incharge FEX. 16. Muhammad Nawaz Awan OG-III Passing and Punching of western union / samba vouchers on terminal. Payment of western union / Samba on computer terminal. Preparation of all vouchers / daily statements of western union / Samba Payments. Any assignment by the Incharge Bills Section. 17. Muhamamd Arshad Messenger Messenger duties with Foreign Exchange / Bills / Advances. 66 Note. The Incharge FEX and officer shall be held responsible for any penalty imposed by SBP

due to the negligence / non completion of work / books and balancing. The both officer will monitor all heads other FEX items for well in time reporting monthly, quarterly, annual return to controlling office.

Duty / Assignments noted.

Muhammad Afzal Syeda Ruqia Ansar Muhamamd OG-II / MTO OG-II / MTO Arshad Messenger DEPOSIT SECTION 18. Nazir Ahmed Awan Incharge Deposit Note. Departmental Head will be responsible for rectification of inspection / Audit irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet / clearance certificate.

OG-II Verification of signature of PLS / C/A depositors Joint Signatory of cash / transfer voucher over Rs.25000 / Rs. 50000/- respectively. Deduction of FED / W.H.Tax and depositing in GOVT collection accounts. Deduction / refund of ZAKAT and maintenance of register Maintenance of sundry account register Maintenance of un-claim deposit account Maintenance of ZAKAT declarations forms / register Maintenance record of suspicious transactions Transfer of un claimed deposit to Head Office on proper dates. Maintenance / updating the record of dormant / In-operative / un-claim deposit accounts. Maintenance of service charges record. Maintenance of over 0.500 Million transactions. Maintenance of record for stop payments Maintenance record of Lien marked against

cheques. Proper maintenance of cheque return register Maintenance of record for all closed accounts NBP protection shield Monthly, quarterly, half yearly and annual returns of ZAKAT / Un-claim and all other relative statements pertains to deposit section. Checking of daily DTRs and non-financial transactions of the Department. Detection of Money Laundering and Maintenance of Record their off. Weekly / Monthly / Quarterly Balancing of all Books & Accounts. Any Other assignment by Operation Manager / Branch Manager 19. Muhammad Aslam Virk OG-II Customer relations officer Account opening (PLS / C/A) NADRA verification of PLS and current accounts opened by him. He will be responsible to complete all formalities before opening of the accounts. Issuance of cheque books.

 Payment of monthly salaries of Govt. 67 departments. Issuance of SC, LSC Receipts to customers. Any Other assignment by Operation Manager / Branch Manager / Incharge Deposit. 20. Ijaz Ahmed Cheema OG-I Terminal duty cash side / punching of PLS/ Current A/C in computer. He will insure that account opening forms are complete in all respect before punching the same. Passing of Cheques / Vouchers of cash side up to Rs 25000 and joint signatory of cash vouchers above Rs.25000. Punching of cash side cheques / credit vouchers & other instruments received in cash. Double signatory in deposit section. Preparation of PTCL / GEPCO & T.T / M.T Vouchers for PTCL / transfer of PLS, C/A accounts. Checking of daily DTRs, C/A / PLS account.

 Daily Weekly / Monthly / Quarterly / Half Yearly / Annual Balancing of C/A / PLS / NIDA. Any Assignment by the Incharge Deposit for completion of Misc books of deposit section. 21. He is responsible for proper Shut Down of Computer by Executing End of Day program. He will not leave the branch until system is not properly shut down. He is instructed to report Operation Manager for any deficiencies accrued in non execution of end of day program by pointing out the person held responsible. Terminal duty transfer side Passing of transfer Cheque / Voucher up to

Rs.50000/- and joint signatory of all transfer voucher over Rs.50000/ Punching of cheques / credit vouchers and all other instruments received in transfer from Establishment / clearing / GOVT etc. Preparation of Weekly Schedule Telegram. Punching/Posting of Govt. Employees Salaries received from different Govt. departments. Any assignment assigned by the Incharge deposit/Operations Manager. Note. The Incharge Deposit and officers shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers will monitor all heads of Deposit and other Deposit items for well in time reporting in monthly, quarterly, annual return to controlling office.

Duty / Assignments noted.

Nazir Ahmed Awan Muhammad Aslam Virk Ijaz Ahmed Cheema OG-II OG-II OG-II BILLS SECTION

22 Ghulam Mustafa Incharge Bills Section Note. Departmental Head will be OG-I Issuance Of PLS TDR / MIS NBP Premium Income Scheme Stamp Accounts Issuance / Payment of D.D / M.T / T.T / G.D.D / Call Deposit receipt & PRTC and punching 68 responsible for rectification of inspection / Audit irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet / clearance certificate. their off in EBS / BBO through assisting official. Dispatch of M.T / scrolls pertaining to daily collection of PTCL, GEPCO and daily

collection of utility bills to concern departments / bank. Application of profit on MIS / TDR / Premium Income Scheme and maintenance of their record. Calculation of exchange / commission on Govt Drafts. Weekly / monthly Balancing of books with the help of his assisting staff. Time to time queries / statements required by R.O / H.O or from any other branches. Proper execution of end of day for closure of daily EBS System. Any Other assignment by Operation Manager / Branch Manager 23 Miss Bushra Ch. OG-II Assist to Incharge Bills Section in following areas.. Punching of PRTCP in BBO System and Generation of Relative day books / statements. Checking of daily DTRs and non-financial transactions of the department.

 Preparation of Weekly, Monthly, Quarterly, Half Yearly and Annual statements / returns pertaining to bills department under the supervision of Incharge Bills Department. Any assignment by the Incharge Bills/Operations Manager. 24 Safdar Hussain OG-II Issuance / payment of D.D, MT, G.D.D, P.O and advices and their files / books & other record of D.D / M.T / T.T / G.D.D / Call Deposit receipt. Payment of NEC / OEC / TTP / DDPs/SC/LSC. Any other assignment assigned by the Incharge Bills/Operations Manager.

Note.
The Incharge Bills and officers shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers will monitor all heads of Bills Section for well in time reporting in monthly, quarterly, annual return to controlling office.

Duty / Assignments Noted.

Miss Bushra Ch. Ghulam Mustafa Safdar Hussain OG-I OG-II OG-III ATM /CLEARING SECTION 69 25 Zaka Ullah OG-II He will assist Incharge Clearing for daily clearing balance. Double signatory of all vouchers of Clearing sections. Online Banking (Receipt / Payment Vouchers & preparation of claim of online banking to concerned branches) Maintenance of proper record of online banking. Preparation of daily ATM vouchers & checking of daily DTRs. Issuance of ATM card / Pin Codes Maintenance of un-paid claims of ATM clients. All statements relating to ATM Any Other assignment by Operation Manager / Branch Manager. 26 Muhammad Asghar Kamboh OG-III Punching / balancing of clearing vouchers. Submission of clearing vouchers to NIFT and

other branches. Preparation of daily clearing statements / RBVs Double Signatory of clearing Dealing with NIFT and running of Dongle program. Daily Balancing of Clearing Adjustment Account. Online punching of clearing vouchers on EBS and punching of MT, D.D, TT and all relatives voucher of bills section. Any assignment by the Operations Manager. Zaka Ullah Muhammad Asghar Kamboh OG-III OG-II GOVERNMENT SECTION 27 Muhammad Nawaz Cheema Incharge Government Note. Departmental Head will be responsible for rectification of inspection / Audit

irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet / clearance certificate. OG-I Supervision of all Collection Accounts / Payment Transaction / Daily Railway Collection in Govt. Section for transfer their off to SBP / Account Office. Govt. / Railway Pension Payment (Cash / transfer) Renewal / registration of Federal Govt. Arm license Double signatory of all Govt. receipt / Payment voucher Preparation of Govt. Payment Scroll Preparation of all statements / returns. Counter signing of all utility bills Any Other assignment by Operation Manager / Branch Manager

28 Asim Qadeer Cheema OG-II Govt. receipt cash / transfer Transfer of daily Govt. Receipt / Payments / Railway collection to SBP. Counter signing of all Govt. receipt challan / voucher Dispatch of all Govt. receipt payment scroll and vouchers along with daily summary of 70 Govt. receipt / payment to account office / SBP. Double signatory of all Govt. receipt /payment voucher Any other assignment by the Incharge Govt. section. 29 Rafaqat Ali Messenger Messenger duties in Govt Section. Note. The Incharge Govt. and officers shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers will monitor all heads of Govt. Section for well in time reporting in monthly, quarterly, annual return to controlling office.

The Incharge and officer shall be responsible for:1. Supervision of all Govt. receipts / collection and transfer there of to SBP / account office well in time. 2. Responding of RBVs of all linked branches for Govt. receipts / payments and transfer there of to SBP well in time and scrolls there of should be submitted to SBP and account office. 3. Daily Railway collection must be transferred in Railway fund with SBP Gujranwala on daily basis. 4. Daily CBR collection should be transferred in SBP account well in time on daily basis. 5. Proper reporting of summaries / transfer of fund should be made properly and insure no complaint from SBP / any other authority.

Duty / Assignments noted.

Muhammad Nawaz Cheema Asim Qadeer Cheema Rafaqat Ali OG-II OG-III Messenger CASH DEPARTMENT 30 Ghazanfer Mehmood OG-I Joint Custodian Chest. Daily Checking / maintenance of outward postage / dispatch Register.

 Branch Security Officer. Test Key Part II. Maintenance of security documents. 31 Muhamamd Tariq Note. Departmental Head will be responsible for rectification of inspection / Audit irregularities of his department and coordinate with branch compliance officer for submission of remarks Sheet / clearance certificate. OG-I Incharge / Chief Cashier of Chest. He will assign the counter duty of cash officers in cash department on monthly rotation basis by maintaining proper duty register. Incharge Almirah for distribution of cash on

counters and receiving of cash from counters with balancing at close of business. Writing of branch chest balance book / vault Register, cash balance book etc. Dispatch of daily telegram / cash report to SBP. Any assignment by the Operation Manager / Manager. 32 Jawad Riaz Butt OG-II Cash Officer, the duty will be assigned by Chief Cashier on monthly rotation basis. 33 Javeed Ashraf OG-II Cash Officer, the duty will be assigned by 71 Chief Cashier on monthly rotation basis. 34 Muhammad Ishaq OG-II Cash Officer, the duty will be assigned by Chief Cashier on monthly rotation basis. 35 Rana Asad Ullah Tariq OG-II Cash Officer, the duty will be assigned by Chief Cashier on monthly rotation basis. 36 Masood Ahmed khokhar OG-II Cash Officer, the duty will be assigned by Chief Cashier on monthly rotation basis. 37 Shahzada Munawar Masih OG-III Cash Officer, the duty will

be assigned by Chief Cashier on monthly rotation basis. 38 Muhammad Rafique Bank Guard Messenger duty in cash department 39 Rana Mueed Cashier Duty of Godown Keeper 40 Muhammad Yousaf Cashier Performing duty of dispatch. 41 Ghulam Abbas Cashier Performing cashier duty. 42 Khadam Hussain Messenger Performing duty at Regional Office Canteen 43 Jamshed Ahmed Cook Performing duty at Regional Office Canteen 44 Abdul Ghaffar Messenger Performing duty at Regional Office Canteen 45 Mazhar Iqbal Driver Driver Branch Car 46 Tariq Husain G/Chowkidar Messenger Duty with Operations Manager 47 Liaqat Ali G/Chowkidar Messenger Duty with Manager 48 Mukhtar Ahmed G/Chowkidar Messenger Duty In Deposit Section Note. The Joint Custodian and Chief Cashier along with all Cash officers shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers will monitor all heads of Cash Department for well in time disposal of their work and reporting the required

information in Daily, Monthly, Quarterly, Annual return to controlling office / SBP. Daily Railway collection duty will be assigned by the chief cashier to any cash officer on monthly rotation basis.

Duty / Assignments noted.

Ghazanfer Mehmood Muhamamd Tariq Javeed Ashraf OG-II OG-II OG-II Jawad Riaz Butt Muhammad Ishaq OG-III OG-III Rana Asad Ullah Masood Ahmed Khokhar Shahzada Munawar Masih OG-III OG-III OG-III Muhammad Rafique Rana Mueed Liaqat Ali Bank/Guard Cashier G/Chowkidar Muhammad Yousaf Ghulam Abbas Tariq Hussain Cashier Cashier G/Chowkidar Mukhtar Ahmed Mazhar Iqbal Jamshed Ahmed G/Chowkidar Driver Cook Khadam Hussain Abdul Ghaffar Atta Ullah Messenger Meesenger G/Chowkidar 72

Note:
Every dealing officer/ employee will be responsible for his respective seat and will not leave the branch before completion of his job / assignment till the end of day program is executed and EBS is properly shutdown. Incharge of every department / section will be held personally responsible for his department and will ensure that bank routine work is being done according to bank's rules and regulations. They are also responsible for keeping up-to-date record of weekly, monthly, quarterly/ annually Balancing of Books, DTRS, Non Financial transactions for surprise/ Annual Inspection/ Audit to avoid SBP penalties. It is also notified that in case of any emergency a special assignment can be allotted to any staff member. Duties of cash Department are changeable and are on the discretion of the chief Cashier according to daily requirement / demand on cash counter / need basis.

Note:
All cash Officers / Cashiers are instructed not to issue singly signed receipt of cash / Govt. vouchers to public / depositor on his behalf i.e. singly signed. The Receipt must be issued to the

depositors after having the double signature from. Officer Govt. / Deposit section. All to please note their duties with full signatures.
HR MANAGER Operation Manager

CATEGORY OF BRANCHES
Category -I Working staff up to 5 including: Branch Manager who performs as Operations Manager and Compliance Officer and Customer Services Officer too. Category -II Working staff from 6 to 15 including:Branch Manager and Operations Manager, Operations Manager acts as Compliance Officer and Customer Services Officer too. Category III Working staff 16 and above including:Branch Manager, Operations Manager, Compliance Officer, Relationship Officer, Credit Officer and Customer Services Officer. Category IV Corporate Branch Branch Manager, Operations Manager, Compliance Officer,

Relationship Officer, Credit Officer and Customer Services Officer.

RESPONSIBILITIES
RESPONSIBILITIES Branch Manager 1. Responsible for over all Business affairs of the Branch. 2. Development of Business Plan for the Branch. 3. Marketing of Deposits, Products as well as Commercial and Retail Banking Products. 73 4. Visiting Banks Customers 5. Negotiations with the Borrowers and Depositors for Facilities, Securities, Pricing. 6. Obtainment of Customers Financials. 7. Sanction of Credit Proposal within his/her Business Discretionary Powers. 8. Processing of Credit Proposal (s). 9. Follow up for making good the shortfall in the pledged goods (Jointly with Operation Manager & Credit Officer). 10. Follow up for recovery of Finance jointly with Credit Officer. 11. Filing & Persuasion of Suits for Recovery of Finances Below Rs.30. million Jointly with Credit Officer).

12. Coordination with the Branch Operations Manager in preparation of Budget. 13. Annual Confidential reports of reporting staff. 14. Persuasion of Litigation Cases. 15. Follow-up for recovery of non-performing finance. 16. Processing of Restructuring & Rescheduling requests. RESPONSIBILITIES Operations Manager 1. Manage all operations of the Branch by implementing Standard Procedure Manual (SPM), State Bank of Pakistan Prudential Regulations, Core Principles and all applicable rules and regulations. 2. Maintain high level of Customer Service Standards in the Branch with particular emphasis on Cash Counters. 3. Ensure that check and control system is in place. 4. Maintain a zero complaint environment in respect of collection of utility bills, collection / receipts of Government revenues, pension and salary payments to Government and other employees in particular, and other customer services areas. 5. Permission to open new Bank accounts. 6. Preparation, implementation and monitoring of Branchs Expense Budget jointly

with Manager. 7. Approval of expenses within delegated authority / approved budget. 8. Management and monitoring of Branch cash balances as per rules and regulations. 9. All matters relating to Premises, Equipments, Vehicles and other Dead Stock items. 10. Maintenance & implementation of new IT initiatives in collaboration with IT Department. 11. Proper operations of Lockers, Safe Custody of Articles and other services provided to Banks customer. 12. Hajj and Zakat operations to ensure prompt and courteous service to the applicants / customers. 13. Opening of L/Cs and purchase / discounting of Foreign and Local Bills (Processing). 14. Maintenance of Branch Books in accordance with prescribed procedures. 15. Deduction / recovery of service charges as per Banks Tariff. 16. Review of computer outputs in accordance with vouchers, books, registers and ACRs of the reporting Staff. REPONSIBILITIES

Credit Administration Officer jointly with Operations Manager 1. Ensure that documentation (Finance I loan agreements, Guarantees, Transfer of Title of Collaterals, Creation of Charge in Bank's favor etc.) is in accordance with approved terms and conditions of sanction advices. Tracking and follow-up for outstanding documents (if any) to ensure execution thereof. 74 2. Before recording any finance / loan facility information / data into computer system, ensure that the said facility has been sanctioned by the competent authority. 3. Ensure that disbursements are made only after completion of all covenants, creation of Bank's Charge / Lien on primary and collateral securities with the concerned authorities and sufficient stocks have been pledged I hypothecated to cover disbursement as required in the sanction advice. In case of exceptions necessary approval is obtained from competent authorities. 4. After the Finance I loan facility is sanctioned and withdrawals are allowed, ensure that the Finance / Loan is constantly monitored by way of keeping track of borrowers' compliance with credit terms, conducting periodical

valuation of stocks and collaterals, physical verification of collaterals, inspection of stocks pledged / hypothecated with the Bank, identification of early signs of irregularity (if any) and timely recovery of installments. 5. Ensure that borrowers are communicated well in time as and when the principal I mark-up installment becomes due. Late payments or non-payment of installments are recorded properly and the same are conveyed to competent authorities. 6. Ensure compliance to procedural standards and guidelines issued by competent authorities for maintenance of credit files. 7. Ensure that all security documents are kept in fireproof safes under dual control and registers for documents are being maintained to keep track of their movement. 8. Arrange fresh and renewal of insurance coverage for all primary and collateral securities on regular intervals from Bank's approved Insurance company / companies. 9. Follow-up with Branch Manager for obtainment of periodical stock reports from borrowers, Mucadams, Godown Inspectors, Godown Keepers,

Godown Chowkidars, or any other person/company authorized for the job. 10. Review of all Trade Finance related transactions on regular basis and suggest measures to Branch Manager under advice to Regional Operations Chief. 11. Review of entire portfolio of Finance, Borrowers, Stocks, Primary & collateral securities and security documents for accuracy on regular basis in consultation with BLA (if required). 12. In case of any shortfall in the value .of stocks due to market fluctuations, followup with Branch Manager for making good the shortfall in the value of pledged stocks. 13. Follow-up with Branch Manager for recovery / regularization of finance. 14. Constant watch of price fluctuations in local, domestic and international markets to ensure that no borrower or co-obligant is influenced by speculations or get involved in any other unfair means of business. 15. Arranging insurance policies of appropriate value from approved Insurance Company / Companies for stocks pledged / hypothecated with the Bank in prescribed manner and renewal thereof.

16. Overseeing and monitoring of Mukaddams engaged as per Bank policy. Wherever facility of Mukaddams is not available/not required, supervise the pledged goods through Godown Keeper(s)/Godown Chowkidar(s) hired by the Borrowers. 17. In case of Category-I branches the operations related and credit administration functions will continue to be the responsibility of Branch Manager. While the Branch Manager has solid line reporting to the Regional Business Chief. With regard to operations and credit administration jobs he/she will also be directly reporting and be accountable to the Regional Operations Chief and will accordingly seek guidance and instructions from him/her/her. RESPONSIBILITIES Compliance Officer 1. He performs the duties of Anti Money Laundering, Supervisory Officer at the Branch too. 75 2. Daily review of transactions to ensure compliance of Bank, SBP & Local Regulations. 3. Review of account opening and surprise cash count.

4. Review of maintenance of computer input / output. 5. Periodical physical count of security stationery. 6. Checking of accruals & NBP General Account reconciliation. 7. Preparation of Branch Compliance report. 8. Countersign all Branch Returns to confirm correctness and completeness. 9. Rectification of irregularities pointed out by Internal, External & Regulatory Auditors. 10. Special reviews of accounts to check Compliance of Anti Money Laundering regulations. (Reference chapter No.II Para No.82. 11. Acquire and maintain a level of compliance awareness and knowledge of applicable rules and regulations. 12. Monitor to ensure applicable laws, regulations and Banks policies are being followed and new or revised laws, regulations and Banks policies are promptly communicated and followed. 13. Review Audit Reports of Internal / External Auditors and State Bank of Pakistan Inspection Report and ensure corrective measures are promptly implemented. 14. Report as per schedule all applicable compliance issues to the Operations Manager and the Regional Compliance Chief.

15. Report promptly about theft, dacoity, fraud, forgeries or any other mishap. 16. State Bank Prudential Regulations. 17. Relevant provisions of existing laws and regulations. 18. Guidelines for Know Your Customer. 19. Anti Money Laundering laws and regulations. 20. Monitor / report suspicious transactions to Chief Compliance Officer of the Bank. RESPONSIBILITIES Relationship Officer 1. Solicit and establish new credit relationship & maintain existing relationships. 2. Preparation of credit proposals. 3. Public relations and image building of the Bank. 4. Marketing of deposits and other banking products. 5. Assistance to Branch Manager in budget preparation and meeting branch objectives. 6. Special assignments/projects from Branch Manager. RESPONSIBILITIES Relationship Manager (For Corporate Branches) 1. Identify potential clients within the allocated vicinity and meet them to know and observe them over time 2. To solicit/attract new clients of good credit growth and profitability

to establish credit relationship with the Bank 3. Maintenance of credit relationship with existing clients & crossselling the banks products (Asset as well as Liability Products) to the suitable clients 4. Processing the loan applications, prepare credit proposals, identifying underlying risks, suggesting mitigates and giving definite recommendations for approval/ decline with justification to facilitate quality lending decision. 5. Liaison between the borrower and the operations manager in completing the following post-sanction formalities:6. Formalities related to collateral / security including creation of charge 7. Execution of Financing Agreements / documents etc 8. Fulfillment of conditions precedent to disbursement, as required in the Sanction Advice. 9. Maintenance of assigned accounts/ and their related files. 76 10. Coordinate periodical inspection of goods hypothecated/ pledged to the bank. 11. In case of any shortfall/shortage of pledged stock, follow up the client to make the shortage/shortfall good to restore the original margin. 12. Keep an eye on the various dynamics as well as inherent risks of

various sectors/sub-sectors of exposure and their impact on the borrowers business/bank credit so that proactive measure can be taken before account deterioration. 13. Visits the borrowers place of business after disbursement and keep monitoring his/her business at reasonable interval so any deterioration of clients business can be flagged / reported proactively. 14. Ensure utilization of the loan for the purposes it was sanctioned. 15. Monitoring position of the borrowers accounts after disbursement for immediate picking up early warning signals and advising/recommending remedial measures to prevent their movement to the classified category. 16. Review portfolio assigned to him/her to assess any significant change in the risk profile of the borrower. 17. Maintaining track of the limits expired/nearing to expire, proactively. 18. Monitoring repayment of each account in his/her portfolio. 19. Reviewing trends in credit portfolio on an on-going basis and suggesting measures to improve the quality of the portfolio. 20. Identify accounts to fall in Watch list and to provide his/her feedback to

RBC/RCMC. RESPONSIBILITIES Credit Officer 1. The Credit Officer is responsible for the appraisal and shall process credit proposal and must provide all relevant information and must make recommendation of the acceptability of the proposal for financing and should state what conditions should be applied. The office note should be prepared to recommend, refuse or decline the loan application if there is no plausible justification for entertaining. 2. Monitor the credit portfolio of the Branch for Risk Management to recognize early warning signals and recommend remedial/preventive measures to Branch Managers. 3. Processing of credit proposal (Jointly with Branch Managers). 4. Follow-up for making good the shortage and shortfall in the pledged goods (Jointly with Branch Managers). 5. Follow-up for recovery of finance (Jointly with Branch Managers). 6. Filing & persuasion of suits for recovery of finances below Rs.20 million (Jointly with Branch Managers).

7. Preparation of credit reports on borrowers. 8. Close liaison with local market for ensuring that no borrower or coobligant has taken to speculations or unfair means of business. RESPONSIBILITIES Customer Facilitation Officer 1. Customer Services Officer is responsible for complaints handling and ensure zero complaint level at the Branch. 2. He will acknowledge all the complaints received at the branch from complainant directly or through Banking Mohtasib/State Bank / Head Office or other Government Offices. 3. He will maintain a complaint register and record of all the complaint received in the branch in chronological order and mark the disposal / action taken there against. 4. He will handle and investigate the complaint in fair and prompt manner. Complaint made personally should be redressed instantly; complaint received in writing would be handling in priority. He will contact the complainant and shall resolve the complaint immediately. 77

5. He must respond to the complainants within 10 working days, if the complaint needs further investigation an interim reply will be sent by him/her to the complainant for the time to be taken and expected date of action / response. He will send final reply to the complainant within 45 working days positively. 6. He will paste on the notice board leaflet in English / Urdu in the reception / customer area of the branch indicating the procedure for lodgment of the complaint. 7. He will provide the copy of complaint form for lodgment the complaint with Banking Mohtasib. 8. He will ensure that the desired services are provided to the customers/clients.

FRAUD PREVENTION, DETECTION AND REPORTING

1. Whenever any member of the staff in a Branch or controlling offices comes to know or has reasons to believe that a serious irregularity or fraud has been committed or is likely to be committed anywhere in the branch or the controlling office, he or she, as Banks employee is duty bound to report the matter to appropriate authorities in confidence so that timely measures could be

taken by the Bank to protect its interest. 2. For providing safeguard against fraud, removing stagnation and making the services of the officials more valuable to the Bank, their duties should be changed more frequently without interfering unduly with the smooth working of the office. 3. In all cases where frauds, forgeries, misappropriations, embezzlements and defalcations are uncovered at a branch, it must forthwith be reported to Head Office, as per procedure advised by Head Office from time to time and the delinquent staff/officers should immediately be removed from their seats/places of work, even when it is not considered appropriate to suspend them, so that investigation could be conducted unhindered and uninfluenced. The case of fraud, forgery and misappropriation should be reported to the special investigation cell of the FIA, concerned / designated agency. The time lag between detection of fraud, forgery etc., and reporting the same to FIA NAB, concerned/designated agency should be reduced as much as possible. In cases where there are sufficient reasons to fear that the suspected person(s) will decamp if

not immediately arrested, time not permitting, a reference to the controlling office, arrangement should be made with the police that the warrant is issued under a compound-able section of the Pakistan Penal Code, because if the arrest is made under a non-compound-able section, the authorities may insist upon a prosecution which the Bank might consider undesirable. In such an event the operations manager should act, if necessary, under legal advice and must fax to his/her controlling office the steps he/she is taking and the reasons thereof. 4. Cases of fraud & forgery will be dealt with and punishment in such cases will be awarded by Head Office only and not by the Regional Offices irrespective of the rank and designation of the employee involved therein. 5. Frauds can best be prevented by: 6. Recruiting the right type of persons as employees after getting their antecedents verified from the police department, 7. Using careful discrimination in accepting new constituents, 8. Inducing the constituents to write cheques with indelible ink, 9. Constantly changing the duties of the staff, 10. Keeping a vigilant watch on the activities of the employees as

well as on their personal accounts, 11. Having surprise visits/inspections of the branches frequently by the Regional Inspectors/Members of RMT. 12. Carrying out a comprehensive and intelligent check over each days transactions, and frequently balancing the books/computer output. 78 13. Operations Manager must satisfy themselves daily by an examination of the books / computer output, of days transactions that they are properly kept and have been duly checked. 14. The value of surprise inspections / checking of hard copies of days transactions at end of day and must not be overlooked. In the course of their general supervision, operations managers and other members of the supervising staff should call for various books at irregular intervals and scrutinize or check them in such a way that those directly responsible for their correctness are made aware that their work is under the eyes of their superiors. 15. Operations Manager should periodically review their office routine with the twofold object of eliminating any unnecessary work and assuring themselves

that they are abiding by the Banks rules and regulations. In order that certain salient features may be kept before operations managers and other members of the supervising staff a monthly certificate in form F-10 will be submitted by every branch to its Regional Controlling Office on the last working day of each month. His/her certificate must not be regarded as a matter of form but must be a true statement of fact and, where necessary, the wording should be altered accordingly under authentication. 16. Operations Manager must confirm that all the daily transactions sheets generated by the computer have been checked with relative vouchers / cheques and have been tallied with the general ledger daily.

BANKER CUSTOMER RELATIONSHIP

RIGHTS OF A CUSTOMER Draw cheques against his available bank balance. Give stop payment mandate and removal thereof. Terminate his deposit account and claim payments of all sums lying in his account. Share in the profit/ losses as earned and determined by the bank in

the case of PLS based deposits. Have practical bank statements of his accounts. Get the errors rectified in the bank statement, if any. Deposit cash and cheques for collection in his account. Have new cheques book after utilizing the pervious one. Be informed about any direct operations in his account by the bank. Sue the bank for wrongful dishonor of his cheque/s along with damages. Cross, indorse or cancel cheques and other instruments. Sue the bank for wrongful disclosure of his bank account/balance. Ask for his balance within business hours. DUTIES OF A CUSTOMER Keep the Cheque Book under lock and key. Take reasonable care in drawing cheques. Disclose his banker about missing cheques. Draw the cheques only on the Cheque Book provided by his bank. Present cheques and other instruments for encashment/collection within business hours. Notify the bank in case of any disagreement in the bank statement. Abide by rules and regulations of his bank. RIGHTS OF A BANKER

 Recover charges, if any Recover outstanding amount of finance and mark up due thereon. Sell securities upon default by the customer after serving him reasonable notice. Stop operation of the account in the following circumstances Death of Customer. 79 Insanity of Customer. Under Orders of the Court. Bankruptcy of Customer. Unsatisfactory Operations (after serving reasonable) Retain customers funds unless demand arises for its repayment. Disclose information of his customers account under special circumstances. Sue for recoveries, if deficient against securities and set off. Take pledge of hypothecated stocks in case customer fails to adjust his loan account as per agreed terms. DUTIES OF A BANKER Honor cheques of the customer against his available balance. Abide by standing instruction/s of the customer. In case deposit account is closed by the customer, to pay the entire amount through bankers cheque/P.O., after satisfying claims (if any.)

 Provide periodical bank statements. Collection of customers cheques. Maintain secrecy of his customers account (except where exempted). Inform his customer about: dishonor of cheques/bills along with reason thereof closure of his account. Suspension / stopping operations of his account Banks intention to sell securities belonging to the customer.

MAJOR LAWS IMPACTING OPERATIONS IN BANK ACCOUNTS

The Negotiable Instruments Act. 1881 The Banking Companies Ordinance, 1962 The Companies Ordinance 1984 The Contract Act, 1872 Financial Institutions (Recovery of Finances) Ordinance, 2001 The Partnership Act, 1932 The Transfer of Property Act, 1882 The Bankers Book Evidence Act, 1891 The Power of Attorney Act, 1882 Others. 80 81

Notice of 60th Annual General Meeting14 For the year ended December 31, 2008
Notice is hereby given that the 60th Annual General Meeting of National Bank of Pakistan (Bank) will be held on Tuesday, the 28th April, 2009 at 10:30 A.M (PST), at Crystal Ball Room, Marriott Hotel, Karachi. The following business will be transacted in the meeting: Ordinary Business: 1. To confirm minutes of the 59th Annual General Meeting held on Monday, the 31st March, 2008, at 9:00 A.M. at Marriott Hotel, Karachi. 2. To receive and adopt the Audited Accounts of the Bank for the year ended 31st December, 2008, together with 82 the Directors & Auditors Reports thereon. 3. To appoint auditors for the year ending 31st December, 2009 and fix their remuneration. 4. To consider and approve Cash Dividend @ 65% and Bonus Shares @ 20% (thereby increasing the Paid-up Capital of the Bank from Rs. 8,969,751,880/- to Rs.10,

763,702,260/-) as recommended by the Board of Directors for the year ended 31st December, 2008 (subject to Government of Pakistan/ Regulatory approvals). Special Business: 5. To ratify the revision / enhancement of the Directors Fee/Expenses Package. 6. To approve increase in the Banks Authorized Capital from Rs. 10 Billion (divided into 1,000 Million Ordinary Shares of Rs. 10/- each) to Rs. 25 Billion (divided into 2,500 Million Ordinary Shares of Rs. 10/- each), as approved by GoP, vide Finance Divisions Notification No. F.1 (4) Bkg-III/2002217/2 dated March 9, 2009, by passing the following special resolution: RESOLVED THAT in terms of Section 4(4) of The National Bank of Pakistan Ordinance, 1949, the increase in the Banks Authorized Capital from Rs.10 Billion (divided into 1,000 Million Ordinary Shares of Rs. 10/- each) to Rs.25 Billion (divided into 2,500 Million Ordinary Shares of Rs. 10/- each) as approved by GoP, vide Finance Divisions Notification No. F.1 (4) Bkg-III/2002-217/2 dated March 9, 2009, be and is hereby approved. par 7. To approve donation of Rs.190, 891.45 to one or more charitable

trust(s) / Welfare Association(s) or any other institution / organization engaged in the welfare of human being, by passing the following ordinary resolution RESOLVED THAT the donation of Rs.190, 891.45, being the net sale proceeds of 2,694 fractional Bonus Shares - 2007 to one or more charitable trust(s) / Welfare Association(s) or any other institution / organization engaged in the welfare of human being, name(s) of which will be approved by the President (NBP), be and is hereby approved. (Statement under Section 160 of The Companies Ordinance, 1984 in respect of Special Business is enclosed with the notice sent to Banks shareholders.) 8. To transact any other business with the permission of the Chairman. By Order of the Board Karachi. (S. Ali Raza) Dated: April 06, 2009 President Note: i) The Share Transfer Books of the Bank shall remain closed from April 18, 2009 to April 28, 2009 (both days inclusive). Transfers received at Messrs THK Associates (Pvt) Ltd., Ground Floor, State Life Building No. 3, Dr.

Ziauddin Ahmed Road, Karachi, the Banks Registrar and Share Transfer Agent, at the close of the business on April 17, 2009 will be treated in time for purpose of the entitlement of Cash Dividend / Bonus Shares. ii) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as a proxy to attend and vote on his / her behalf. The Government of Pakistan and State Bank of Pakistan and any Corporation(s), being member of the Bank, may nominate any person as its representative to attend the Annual General Meeting under authority of a Power of Attorney or a Board of Directors Resolution. Proxies or nominations, in order to be effective and valid, 83 must be received at the office of the Banks Registrar / Transfer Agent, Messrs THK Associates (Pvt) Ltd., Ground Floor, State Life Building No. 3, Dr. Ziauddin Ahmed Road, Karachi, not less than 48 hours before the time of holding the Annual General Meeting. iii) The CDC Account Holders and Sub-account Holders, whose Registration details are available in the Share Book Detail Report shall be required to

produce their respective Original Computerized National Identity Cards (CNICs) or original Passports at the time of attending the Annual General Meeting to facilitate identification. Such Account Holders and Sub-Account Holders should also bring / know their respective participant I.D. Number and the CDC Account Number. In case of proxy, he/she must enclose an attested copy of his / her CNIC or Passport. Representative(s) of corporate member(s) should bring usual documents required for such purpose. iv) Members are requested to immediately notify any change in their addresses to the Banks Registrar / Transfer Agent, Messrs THK Associates (Pvt.) Limited.

PROBLEMS FOUND DURING THE INTERNSHIP

During my internship at this particular branch of national bank of Pakistan, there are following problems I have found which are directly affect on efficiency and performance of the bank. There problems are also called as an internal problems. So these are discussing below. 1. Lack Of Communication Among The Employees: During the period of my internship I found this problem as a biggest

problem that, they are not very effective in communication between themselves. They do not share the experience with each other and do not care the other employee. If one employee has a problem, then he asked to other, but he does not give clear solution to that problems. They are shows the facial expressions against each other. Pension manager and other employees are always tried to gain cash/performance award and use the references to get it. They are talk against each other in front of me. So finally it is very needy for a public services organization to keep atmosphere friendly among the management and employees. National bank of Pakistan (Tech Society Branch) is lack in communication skills among the employees. 2. Ineffective Public Dealing: There is also a big issue that they think its governments bank so it does not care customers. It is a wrong perception. There must be a good public dealing in public service organization. If one customer asked a question twice. They angry on him and stop working. I personally experienced in pension department. The manager pension had no respect to the old pensioner and he used wrong wording against them same is also

happened in bills executive in bills is also angry on Customers, when they asked question twice, so there should be solve this problem to create a good environment of the NBP. 3. Lack Of Commitment: Lack of commitment is also a big problem faced by the national bank of Pakistan (Civil Lines Branch Gujranwala). Employees are not committed to the work and their duties. This is very common problem. Employees are not very committed to their jobs and duties. Top management is also not very committed to this branch. They are not providing employee needed for the clearing seat after transfer of the previous employee. 4. Low Efficiency Of Employees: Efficiency of employees is also low at this branch. For example an employee whose name I do not want to mention has 10 years experience at national bank of Pakistan but he is not professional even at single seat in the bank. Where he assign the result is zero. 84 5. Not Very Regular And Punctual: Regularity and punctuality shows the character of a big and good executive. But this problem is also faced by the NBP. Many executives do not come at time.

6. Lack of Computing Skills: Computing skills are also low, some executive are very efficient in computing skills but some are not totally aware from this system. For example ATM machine at this branch is only handled by cash manager. When cash manager is on leave due to some reason, ATM machine is off not worked because no body knows to run this machine. Western Union is not worked effectively. The person who handled western Union is careless and other employees are not taken interest in that task. 7. Misuse Of Resources: Resource are very needy, so there must be avoid to misuse the resources but in this branch it is reverse case, there is very wrong use of the resources, employees does not take care of resources and not used them in right direction.

SUGGESTIONS & RECOMMENDATIONS

Determine the customer satisfaction and improve perceived levels of service. A customers view of your business will help to increase banks profit. Report competitive strengths and weaknesses to higher management. Confirm the integrity of employees, company procedures and control. Support an incentive program that will boost employees productivity and loyalty.

Identify problems whether large or small. Minimizing turnover and eliminate wasted time by employees through sound job design. Encouraging employees, who probably know more about their jobs than anyone else. Practicing sound human relations and creating a work atmosphere that promotes job satisfaction. Hire new computer literate staff and increase work space.

15 TIPS FOR DEALING WITH DIFFICULT PEOPLE

Here are some tips for dealing with a difficult person or negative message: 1. Forgive: Remember that at our very core, we are good, but our judgment becomes clouded and we may say hurtful things. Ask yourself, What is it about this situation or person that I can seek to understand and forgive? 2. Wait it Out: Sometimes I feel compelled to instantly send an email defending myself. Ive learned that emotionally charged emails never get us the result we want; they only add oil to the fire. What is helpful is inserting time to allow ourselves to cool off. You can write the emotionally charged email to the person, just dont send it off. Wait until youve cooled off before responding, if you choose to respond at all. 3. Does it really matter if I am right? Sometimes we respond

with the intention of defending the side we took a position on. If you find yourself arguing for the sake of being right, ask Does it matter if I am right? If yes, then ask Why do I need to be right? What will I gain? 85 4. Dont Respond: Many times when a person initiates a negative message or difficult attitude, they are trying to trigger a response from you. When we react, we are actually giving them what they want. Lets stop the cycle of negative snowballing and sell them short on what theyre looking for; dont bother responding. 5. Stop Talking About It: When you have a problem or a conflict in your life, dont you find that people just love talking about it? We end up repeating the story to anyone wholl listen. We express how much we hate the situation or person. What we fail to recognize in these moments is that the more we talk about something, the more of that thing well notice. Example, the more we talk about how much we dislike a person, the more hate we will feel towards them and the more well notice things about them that we dislike. Stop giving it energy, stop thinking about it, and stop talking about it. Do your best to not

repeat the story to others. 6. Be In Their Shoes: As clich as this may sound, we tend to forget that we become blind-sided in the situation. Try putting yourself in their position and consider how you may have hurt their feelings. This understanding will give you a new perspective on becoming rational again, and may help you develop compassion for the other person. 7. Look for the Lessons: No situation is ever lost if we can take away from it some lessons that will help us grow and become a better person. Regardless of how negative a scenario may appear, there is always a hidden gift in the form of a lesson. Find the lesson(s). 8. Choose to Eliminate Negative People In Your Life: Negative people can be a source of energy drain. And deeply unhappy people will want to bring you down emotionally, so that they are not down there alone. Be aware of this. Unless you have a lot of time on your hands and do not mind the energy drain, I recommend that you cut them off from your life. Cut them out by avoiding interactions with them as much as possible. Remember that you have the choice to commit to being surrounded by people who have the qualities you admire: optimistic, positive, peaceful and

encouraging people. As Kathy Sierra said, Be around the change you want to see in the world. 9. Become the Observer: When we practice becoming the observer of our feelings, our thoughts and the situation, we separate ourselves away from the emotions. Instead of identifying with the emotions and letting them consume us, we observe them with clarity and detachment. When you find yourself identifying with emotions and thoughts, bring your focus on your breathe. 10. Go for a Run or a swim, or some other workout. Physical exercise can help to release the negative and excess energy in us. Use exercise as a tool to clear your mind and release built up negative energy. 11. Worst Case Scenario: Ask yourself two questions, If I do not respond, what is the worst thing that can result from it?, If I do respond, what is the worst thing that can result from it? Answering these questions often adds perspectives to the situation, and youll realize that nothing good will come out of reacting. Your energy will be wasted, and your inner space disturbed. 12. Avoid Heated Discussions: When were emotionally charged, we are so much in our heads that we argue out of an impulse to be right, to defend ourselves,

for the sake of our egos. Rationality and resolution can rarely arise out of these discussions. If a discussion is necessary, wait until everyone has cooled off before diving into one. 13. Most Important: List out things in your life most important to you. Then ask yourself, Will a reaction to this person contribute to the things that matter most to me? 86 14. Pour Honey: This doesnt always work, but sometimes catches people off guard when theyre trying to Pour Poison on you. Compliment the other person for something they did well, tell them youve learned something new through interacting with them, and maybe offer to become friends. Remember to be genuine. You might have to dig deep to find something that you appreciate about this person. 15. Express It: Take out some scrap paper and dump all the random and negative thoughts out of you by writing freely without editing. Continue to do so until you have nothing else to say. Now, roll the paper up into a ball, close your eyes and visualize that all the negative energy is now inside that paper ball. Toss the paper ball in the trash. Let it go!.

DEALING WITH UNHAPPY CUSTOMERS

Why are this opportunity and not a headache? Here's why: irritate one customer and they'll tell a hundred people about their bad experience, but deal with them correctly and they will become a loyal and happy customer. That's why it is so important to maintain warm positive relations with your customers after all, they're handing you money every monthtreat them and their money with the respect they deserve. They may be upset because of billing charges they weren't expecting, or the product or service wasn't what they were expecting, or delivery was later than promised, or they misunderstood your procedures and practices, or sometimes it is a genuine error on your part, and there are also times when it is simply a figment of the customers imagination. Whichever it is, how you and your staff deal with the situation will make the difference between a loyal and satisfied customer, and a customer who leaves you for the competition. LISTEN. The absolute first thing to remember in dealing with a customer's complaint is to listen. Don't interrupt, just let them talk. We all want to think that people are

paying attention to our needs, so pay attention and let them talk their frustrations out. Often, just letting them vent their frustrations is enough to defuse an angry customer. Sometimes, if you let them talk and explain their frustration, they end up actually switching sides and start defending you. ASK QUESTIONS. Questions help you get to the real problem and not just the one they called you with. There are times, when dealing with intricate or complicated matters, that the customer's frustration is more with them for not understanding what's going on than it is with you. By asking questions you accomplish two things: (1) You are able to clarify the areas of concern, and insure that you are both talking about the same thing, and (2) You demonstrate that you care about the customer and the problem. VALIDATE THEIR FRUSTRATIONS: Let them know that you understand why they are frustrated, and that you care about eliminating their frustration. Don't ever try to make excuses. Always acknowledge how upsetting the situation can be and assure your customers that you want to provide them relief as

quickly as possible. SEEK RESOLUTION: Ask them how they would like the situation resolved. They may not want what you think they want. Yes, it is true that sometimes what they want is unrealistic, but try to accommodate their desires as much as possible. 87 Doing a little extra to resolve the situation will go a long way towards satisfying the customer and winning their continued support. PAUSE BEFORE SPEAKING: Always pause before you respond that pause indicates that you are thinking about what they have said and that you are formulating an appropriate response, not just rattling off some stock answer that you tell everyone. In reality, you may be responding with a stock answer, but the customer needs to feel that the answer was unique and special for them. They needand deserve to be treated like an individual and not some number. DON'T PASS THE BUCK: Whoever gets the irate customer first should have as much authority as possible to resolve customer disputes. No one wants to be on hold while you "talk with your supervisor," or

"see what you can do," or be passed around. Let their first point of contact be their last, no matter how far down the chain of command that person might be. Handling and resolving customer complaints should be one of the first things any new employee learns. If you can't trust your employees to make intelligent and sensitive decisions then why did you hire them in the first place? ACT QUICKLY: No one wants to wait hours or even days for some sort of resolution. When you make the customer wait, you are adding to the frustration and the problem, not resolving it. And finally, smile. Let them be the grump, you be the ray of sunshine that is taking care of their problem. Be pleasant. Their problem may be insignificant to you or may appear to be irrational, but it is serious to your customers. Respect that concern and behave accordingly. Now, in defense of those who have had the totally irrational customer complaint: I understand you completely. Sometimes the customer is completely and irrevocably wrong, and no amount of special treatment or consideration is due them. Unfortunately, there are those whoeven after having reality

explained to themwant you to give them some sort of credit on their account, and may even throw out the old saying, "The customer is always right." At this point you have two choices. First, you can give in and give them some sort of credit or adjustment to their bill, but I fear that no matter what you do, you will never be able to make them happy. Second, you can decide that no matter how much this customer is paying you, it simply isn't worth the grief and hassle of putting up with this much hostility, and stop doing business with them. My words to you are simple: The customer is not always rightbut they are always the customer.

LEARNING TO DEAL WITH DIFFICULT PEOPLE

If you have to work with difficult people every day, you probably dread going to work each morning. What's more, you might get so stressed that you can't concentrate on the job. Have you ever wondered why some people are difficult to work with? 88 Individuals behave in a difficult manner because they have learned

that doing so keeps others off balance and incapable of effective action. Worst of all, they appear immune to all the usual methods of communication and persuasion designed to convince or help them change their ways, The following strategies for coping with such people: How to Cope: Avoid these don'ts when dealing with difficult people: Don't take difficult people's behavior personally. Their troublesome behavior is

habitual and affects most people with whom they come in contact. Don't fight back or try to beat them at their own games. They have been

practicing their skills for a life time, and you're an amateur. Don't try to appease them. Difficult people have an insatiable appetite for more.

Don't try to change them. You can only change your responses to their behavior.

Here's how you can cope effectively with four common types of difficult people. Openly Aggressive People: Stand up to them, but don't fight. Overly aggressive people expect others to either run away from them or react with rage. Your goal is simply to assertively express your own views, not try to win a battle of right and wrong.

First, wait for the person to run out of some steam. Then call the person by name and assert your own opinions with confidence. Snipers: Difficult people are experts at taking potshots and making sneak attacks in subtle ways, such as humorous put-downs, sarcastic tones of voice, disapproving looks and innuendoes. You may feel uncomfortable replying to them because you don't like confrontation. This, however, allows snipers to get away with their covert hostility. Respond to a sniper with a question. That sounds like you're making fun of me. Are you? A sniper usually replies to such accusations with denial, I'm only joking. Nevertheless, questioning covert attacks will reduce the chance for similar attacks in the future. Complainers: These are fearful people who have little faith in themselves and others because they believe in a hostile world. Their constant discouragement and complaining can bring everyone to despair. Don't try to argue these difficult people out of their negativity. Instead, respond with

your own optimistic expectations,. Silent People: People who ignore you, give you sullen looks, and/or respond to every question with either I don't know or silence are difficult because they're timid. Silent people get away with not talking because most people are uncomfortable with silence and are too quick to fill in the gaps. Ask them questions that can't be answered with just a yes or no, such as, Why is it uncomfortable for you to answer my questions? Then wait at least one full minute before you say anything. This long silence may make them uncomfortable enough to say something. If they do start talking, listen carefully. Don't Give Up: Dealing with difficult people takes practice, so don't get discouraged. Although these strategies won't change the difficult people, they will break their ability to interfere with 89 your effectiveness. Most important, you'll feel more confident and you'll start to enjoy your workdays.

GLOSSARY
[A] Agreement Corporation: Corporation charted by a state bank to

engage in international banking; so named because the corporation enters into an agreement with board of governors to limit its activities to those permitted an Edge Act corporation. Automated teller machine-ATM: Computer-controlled terminals located on the premises of financial institutions or elsewhere, through which customers may make deposits, withdrawals, or other transaction as they would through a bank teller. [B] Bill: A short term obligation of US treasury (13, 26,0r 52 weeks maturity). Bonds: a long term obligation of US treasury (more than ten years maturity) [C] Central Bank: The principal monetary authority of nation, a central bank performs several key functions, including issuing currency and regulating the supply of credit in the economy. The SBP is the central bank of Pakistan. Cheque Clearing: The movement of chaeques from the bank or other depository institution where they are deposited back to those on which the y are written, and funds movement in the opposite direction. Collateral: Property that is offered to secure a loan or other credit

and that becomes subject to seizure on default. (Also called security). Commercial Bank: A Bank that offers a broad range of deposit accounts, including checking savings and time deposits, and extends loans to individual and businesses. Commercial banks can be contrasted with investment banking firms, such as brokerage firms, which generally involved in arranging for the sale of corporate or municipal securities. Correspondent Bank: A Bank that accepts deposits of and performs banking services for other depository institutions. Credit: The promise to pay in future in order to buy or borrow in the present. The right to defer payment of debit. Credit Card: Any card, plate, or coupon book that may be used repeatedly to borrow money or buy goods and services on credit. Credit Worthiness: A creditors measure of a consumers past and future ability and willingness to repay debits. Current Account Balance: The difference between the nations total exports of goods, services and transfers and the total imports of them. Current accounts balance calculation

exclude transaction in financial assets and d liabilities. 90 [D] Debit Card: A card that resembles credit a credit card but which debits a transaction account (checking amount) with the transfers occurring contemporaneously with the customers purchase. Discount Rate: Interest rate at which an eligible depository institution may borrow funds, typically for a short-term period, directly from a Federal Reserve Bank. [E] Electronic Funds Transfer - EFT: Transfer of funds electronically rather than by cheque or cash. The Federal Reserves fed wire and automated clearinghouse services are EFT system. Electronic Fund Transfer Systems EFTS: A variety of system and technologies for transferring funds (money) electronically rather than Cheque. This includes fed wire, automated clearinghouses (ACHs) and other automated system. Exchange Rate: The price of a countrys currency in terms of an other countrys currency. [F]

Financial Institution: An institution that uses its funds chiefly to purchase financial assets (loan, securities) as opposed to tangible property. Financial institutions can be classified according to the nature of he claims they issue. Financial Instrument: Any written instrument having monetary value or evidencing a monetary transaction. Fixed Change Rate System: Exchange rates between currencies that are set at predetermined level and dont move in response in supply and demand. [L] Liquidity: (1) The ability of a bank or business to meet its current obligations; (2) the quality that makes an asset quickly and readily convertible into cash. [M] Money Supply: The amount of money (coins, paper currency, and checking accounts) that is in circulation in the economy. Nominal Interest Rates: Current stated rates of interest paid or earned. Note: A medium-term obligation of the U.S treasury; 2-10 years maturity. See also bill and bond. [O] Open- End Credit: A line of credit that may be used repeatedly up to

certain limit. (also called a charge account or revolving credit). [P] Payments System: Collective term for mechanism (both paper-back and electronic) for moving funds, payments, and money among financial institutions through the nation. The 91 Federal Reserve plays a major role in the nations payment system through distribution of currency and coin, processing of cheques, electronic transfer of funds, and the operation of automated clearinghouses that transfer funds electronically among depository institutions various private organizations also perform payments system functions. Premium: The amount by which the auction price of a bill, note; or a bond is higher than its face value. Principal Payments: The face amount of par value of a debt instrument where interest is paid. The interest payment is not part of the principal. [R] Real interest Rate: Interest rat adjusted fro the expected erosion of purchasing power resulting from inflation. Recession: A significant that in general economic activity extending

over a period of time. Reserve: A depository institutions vault cash, (up to the level of its required reserves) plus balances in its reserve account (not including funds applied to its required clearing balance). [S] Saving Bank: Depository institution historically engaged primarily in accepting customers savings deposits and in originating and investing in securities and residential mortgage loans; now may offer checking type deposits and make a wider range of loans. Securities: Paper certificate (definitive securities) or electronic records (book-entry securities) evidencing ownership of equity (stocks) or debit obligation (bonds). Surcharge: An extra charge imposed on those who purchase with a credit instead of cash. (Currently, surcharges for credit card purchases prohibited). [U] Utility: Utility theory explains customer tastes and preferences. [X] X-Mark Signature: A signature made by a person unable to sign his or her name. To be legal valid, the signature must be witnessed by another person.

BIBLIOGRAPHY
www.nbp.com.pk Mr. Ghulam Abbas HR Manager Mr. Muhammad Nawaz Cheema Mr. Shehzad Customer Facilitation Officer (CFO) Mr. Asghar Kamboh Clearing Incharge Mr. Ghulam Mustafa Bills Incharge 92 Mr. Hassan Ali (Credit Officer) Miss. Sayeda Ruqia Ansar (Credit Officer) About Us Privacy Policy Sitemap Contact Us