National Bank of Pakistan

Internship Report on National Bank of Pakistan

Name = JUNAID AHMED Reg # 19380 Class BBA 8-E

Submitted to Miss. Sadaf Alam

Bahria University Karachi Campus

National Bank of Pakistan

Table of Contents
Contents
PREFACE ............................................................................................................................ 3 Mission statement of national bank of Pakistan................................................................ 4 Objectives of National Bank .......................................................................................... 5 Departments in National Bank .................................................................................... 6 FUNCTIONS :.............................................................................................................. 7 PROCEDURE OF ACCOUNT OPENING ................................................................... 7 CLOSING OF ACCOUNT: ......................................................................................... 9 IMPORT AND EXPORT DEPARTMENAT Export Section ................ 11 Procedure of sanction of loan ............................................................................. 13

GENERAL BANKING................................................................................................ 15 Types of accounts ........................................................................................................ 16 Procedure for Opening an Account ........................................................................... 17 ISSUANCE OF CHEQUE BOOK ............................................................................. 19 PREPARATION OF DAILY ACTIVITY REPORTS : ............................................. 19 FINANCIAL ANALYSIS FOR BANK ....................................................................... 21 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS (SWOT) ANALYSIS ..................................................................................................................................... 21 Recommendations ....................................................................................................... 25

National Bank of Pakistan

PREFACE
In order to be able to cope with the changing environment it is necessary to have some practical experience. As the students of Business Administration we have to pass through a series of various managerial techniques. During this practical course we are provided with an opportunity to learn that how the theoretical knowledge can be implemented in practical grounds. I was selected to do my internship in National Bank of Pakistan.I worked there for 2 months & it gave me a greater practical knowledge about the operations of a bank. In the following pages I have narrated my experience, observations & all the working activities which I observed during my 2 week internship at NATIONAL BANK OF PAKISTAN DALMIAN BRANCH.

National Bank of Pakistan

Mission statement of national bank of Pakistan

"To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our values"

National Bank of Pakistan

Objectives of National Bank

Objectives are ends towards which an enterprise activity is aimed. The purpose of business is production and marketing of economic goods and services but to accomplish these objectives to a number of enterprise objectives may be necessary. National bank of Pakistan has certain objectives. These objectives are (1) Advancing loans (2) Accept deposits (3) Remitting of funds (4) Sale of promissory notes (5) Selling and realizing property of bank claims (6) Investment or underwriting of stocks

(1) Advancing loans:

one of the main objective of NBP is advancing loans to industrialists and traders against security of stock, debentures or other securities

(2) Accept deposits:

Bank provides deposit facility to its customers. The types of deposits are Profit and loss saving accounts Fixed account Current account

(3) Remitting of funds:

The bank provides the facility to its customers remitting large amounts of money in the form of bank Drafts, Telegraphic Transfer, Mail Transfer to where ever the customers want.

(4) Sale of promissory notes:

To sell and realize the proceeds of sale of any promissory notes, debentures, stock receipts, bounds, shares etc.

(5) Selling and realizing property of bank claims:

To manage sell and realize all property whether moveable or immoveable which may come in any way of the bank in satisfaction of its claim.

(6)Investment or underwriting of stocks:

To invest the funds of the bank in or the underwriting of any of stocks, funds, shares securities,

National Bank of Pakistan

debentures, bonds or scripts or other securities for money issued by any public limited companies and to convert them into money when required.

Departments in National Bank

Following departments are working in NBP main branch Foreign Exchange

Import and Export Credit and Advances Remittances and Deposits Accounts Computer Government Consumer retailing FOREIGN EXCHANGE DEPARTMENT Foreign exchange is an important department in bank system. In the foreign exchange department all the operations of the bank are done in the same way as in all other departments of the bank this department also involve in deposits, remittances and advances but the difference with other department that the foreign exchange department deals in foreign currency rather then in local currency. For opening of account in foreign exchange the minimum balance required is $100.This department is just like Cash Department in local currency. In this department, the dealing is made in foreign currency.

In National Bank of Pakistan, four currency accounts are available:

US Dollar Pound Sterling Japanese Yen Euro

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FUNCTIONS
The department performs the following functions:

Account opening Account closing Inward/outward remittance Issuance of traveler cheques ACCOUNT OPENING Terms and conditions: Account opening requires two things 1) National id card of the customer and introducer 2) Introducer CUSTOMER: Customer is the person who comes with the purpose of opening the account INTRODUCER: Introducer is a person having the account in same branch and gives guarantee about the customer. If the introducer is not proper than state bank charges RS 5000/- per head from that employee of the bank who has opened the account of the customer on the request of the introducer.

PROCEDURE OF ACCOUNT OPENING AND DEPOSITING FOREIGN EXCHANGE:

First of all, the customer is required to fill an application form. Then he attaches the photocopy of his identity card and fills the signatory cards. Then he is allotted an account number by entering in the account opening register. Now he fills the pay-in slip and deposits money on the counter. Following things are needed for opening of account: Account opening form Signature card

National Bank of Pakistan

Letter of kinship Letter of thanks Issuances of cheque book

Account opening form:

Account opening form consist of Category of account Currency Title of account Account number Customer information Initial deposit Authorized person in case of customer death

Signature card:
The signature card included the name and specimen signature of the customer

Letter of kinship:
In the latter of kinship the customer authorized the bank to pay the proceedings of his/her PLS/Current foreign currency account to the related person by describing the relationship of the person with the customer after the death of the customer.

Letter of thanks:
Letter of thanks is the latter issued by the bank to the customer for two purposes 1) 1st purpose is to say thanks to the customer for opening the account in their bank 2) 2nd purpose is to confirm the address provided by the customer while opening the account.

Issuance of cheque book:

Cheque book is issued to the customer after sending the letter of thanks when the customer comes with the latter of thanks and requests for the issuance of the cheque book. A cheque book (usually having 25 leaves) is issued to the customer.

National Bank of Pakistan

CLOSING OF ACCOUNT:
The customer can close the account. The customer is required to submit an application for closing the account. The account is closed out and his balance is paid to him after deducting the closing charges, i.e. $ 20 and the application is filed in account closing file. There are many reasons for closing of account Account holder Owen request Death of account holder Closing of account due to the bad manners of account holder

INWARD/OUTWARD REMITTANCES
The remittances are of following types:

Foreign Telegraphic Transfer (FTT) Foreign Demand Draft (FDD) Foreign mail transfer(FMT) SWIFT Western union money transfer(WUMT) Foreign Exchange Bearer Certificates (FEBC) Special US Dollar Bond

Foreign Telegraphic Transfer:

This is telegraphic transfer just like ordinary local currency TT, but this is foreign currency. Its charges are fixed, i.e., if payment is in cash, charges are Rs. 1500. If payment is through account, Rs. 1200; if deposit is above Rs. 50,000 charges are Rs. 600. NBP has its correspondent bank in New York . NBP gives credit to main office Karachi, which gives credit to NPB New York, which gives credit to NPB, which ultimately gives credit to required destined bank and account number. Mode of payment can be cash or by debiting the account. When FTT is received from abroad, NBP debits Main Office Karachi account and gives credit to the account of beneficiary.

Foreign Demand Draft:

Foreign Demand draft is also known as FDD. A person who wishes to remit money to someone in another place may if he does not send his own cheque, obtain from his bank a draft on demand

National Bank of Pakistan

payable to the person who is to be paid the money. It may be drawn upon one of the banker's own branches, or upon some other bank where exists for draft to be drawn. Whenever a draft is drawn own advice is dispatches the same day. Advising the bank or branch as the case may be, of the particular of the draft of that banker on whom it is drawn may recognize the draft was it is presented. When a person requires a draft, he should be asked to complete the prescribed application form in which he should state the amount of the draft, the name of the payee and the place of payment. The bank charges commission Rs. 500 flat, excise duty Rs. 4. for charges. After receipt of money, the entry is passed in FDD register and a number is allotted to FDD. Then FDD is prepared and given to the customer. After this, they give credit to Main Office Karachi, and advice is also sent to Karachi.

Foreign Mail Transfer:

These are also known as FMT. Transfer by mail of an account of currency to another country. The Remitter sign auroras requesting the banker to transfer the amount by mail, giving the name and address of the payee.

Foreign Bills for Collection:

Under this head, all foreign cheques are included whose payments are to be received from abroad. When a customer asks the bank for collection, the cheque is sent to the bank on which is drawn.Then on the receipt of advice from abroad, the customer's account is credited in the bank and debit the Main Office Karachi account. The bank charges $10 or the equivalent amount in rupees.

Foreign Exchange Bearer Certificates (FEBC):

Foreign Exchange Bearer Certificates can only be issued from Foreign Currency Account and not from deposit of local currency. The maturity period of these certificates are 5 years, 7 years and 9 years. It can be issued and enchased only in rupees. The customer account is debited and state bank of Pakistan (SBP) is credited.

Special US Dollar Bond:

The bonds have the maturity period of 3 years, 5 years and 7 years. The bank gives the interest at the rate of 5% + LIBOR, i.e. 2%, 3% and 4% respectively.

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National Bank of Pakistan

TRAVELER CHEQUES
Issuance of Traveler Cheques NBP issues the traveler cheques to those people who want to travel abroad. These are not drawn on any specified bank or banks, but payable at practically all banks throughout the world and guaranteed by some well-known institution. National bank purchases the traveler cheques from American Express Bank and makes the payment after selling it to the client. Procedure A customer is required to submit the following things:

Valid passport with visa Return ticket Currency to be deposited in Pak Rupees. Ticket is endorsed. It is converted on the selling rate of that day. Traveler cheques are issued. Their limit is $50 per day for private visit and maximum limit for the year is $2100.

Limit for businessman is $200 per day and maximum limit is $6000. But approval from Chamber of Commerce & Industry is required and certificate of ticket issue for which the payment must be made through cheque. Pak rupee currency account is necessary, and he has to present cheque for the amount to the bank. Endorsement of the ticket is very essential. Issuing ticket authority should endorse its stamp on the passport.

IMPORT AND EXPORT DEPARTMENAT

Export Section
A term used for goods and articles commodities sent from the country to another. Exports in Pakistan are done by the following four modes. These modes are

ADVANCE PAYMENT DOCUMENT AGAINST ACCEPTANCE (D/A) COLLECTION UNDER L.C.

ADVANCE PAYMENT:

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National Bank of Pakistan

In this type of export the importer is making the payment in advance. This shows the height of confidence between importers after the shipment is completed then the bank sends and E-form to SBPstating the export being made.

DOCUMENT AGAINST ACCEPTANCE (D/A):

Consignment is given to the auction house with out any order. A trust receipt is being made issued. Amount is given to the exporter when the goods are being sold or if the auction houses are not able to give the exporter the required money then gave to return the goods in full to the exporter. This payment is made after a specific period of time on which both the parties had agreed i.e. 30, 60, 90, 120, 180, days. If neither the payment is made nor the goods are returned the importer (auction house) are treated as criminal under section 420 of criminal act in Pakistan.

COLLECTION:
Under this type of exports, bank has no liability, buyer and seller sets the rules for this type of export. Only documents are rooted through the bank and also payment is received through the bank. It is done with the prior arrangement between the buyer and seller firm order. Payment is made by the draft, when the bank received the documents through other bank the payment is made. The exporter produces the following documents with the bank at the time of export.

Export license Covering schedule Covering letter (document are received) Airway bill or bill of lading Invoice Packing list Certificate of chamber of commerce Insurance of goods E form

In this type of export payment can be made in parts.

UNDER L.C:
Bank receives an L.C from the importer for exporter of goods. These export LC used in Pakistan are following two types.

1) SIGHT L.CS

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2) USANCE OR D/A LCS SIGHT L.CS The LC in which payment is made at sight basis after documents are delivered USANCE OR DA L.CS: In this class of LC the exporter with that listed in the l.c makes the payment after a specific period of time bank checks all the documents provided. if no error then payment is being made else vice verse. The payment in this type of export is made in full else specified, partly payment may be made when both the parties agrees. After receiving the LC and checking all the documents the officer is issuing an approval sheet. The bank provides the bill of exchange. Exporters provide the following documents to the bank.

Bill of lading or air way bill Invoice Packing list Certificate of chamber of commerce Insurance E form

The bank informs SBP about current export uses the E form. It is issued in quadruplicate. The custom authorities retain first spy of E-form and returned SBP, .2nd copy is for SBP 3rd for exporter and 4th for the banks record. When full payment is being made the SBP's copy is returned to SBP. After receiving their copy SBP compares the two forms.

Procedure of sanction of loan

In Credit department 1st step is to preparation of credit line proposal for the preparation of credit report. For this following information required by the bank from the party

Purpose of loan Details of all firms or companies associated with business Name of proprietor/ partner/directors Accurate and up-to-date balance sheet and profit and loss statement of last two years of

business

Market report of the borrower repute Report from the bank if borrower has maintain his account with the bank

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CIB report Full details of existing limit and actual liability against the business Particular about the foreign exchange deposits and bills given by the borrower to the

bank

Memorandum and article of association in case of limited company Audited report of balance sheet and income statement of last two years

After checking all the securities, customer verification the manager done the following tasks 1. Preparation of credit proposal 2. Prepare the about the customer 3. Sanction of loan

1) Preparation of credit proposal

After formal application for the credit the party submits approval. For this purpose borrower can use coarse paper or the form provided by the bank. Along with the application borrower also submits the documents required by the bank. The bank manager evaluates the documents provided by the borrower. He gets the party's credibility report confidentially from the other commercial banks. He checks the balance sheet and income against the assets in the company. He also measures the percentage of owner's equity. Then he doses the ratios analysis of the company. If the party is involved in the export and import business then the data of the last three years of this business is considered. The manager of the bank also examine the project violability, the securities provided by the debtor to the bank are evaluated by measuring their worth. In the case of pledge is assessed by the manager while in case of new party manger checks from where the party is financing for their business

2) Prepare the Proposal about the customer

After preparing the proposal manger prepare the report about the customer. Report contains the following information
Name of the company Date of establishment Address Nature of business Branch office Worth of business Date

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Banker's opinion Head cashier opinion Branch manger opinion

In case of partnership business following information are included in the report

Partner, their share in capital, profit and loss Deed of partnership Partnership letter Turn over Net profit Personal property of partners Bank balance of partners Advance payment of suppliers Particular of machinery installed in the factory through financing

Incase of corporation/limited companies the following information are included

Incorporation and commencement of company Sales offices Capital information Directors and their contribution to capital Balance sheet with explanation and evaluation Net worth of the company

3) Sanction of loan
If the limit of the loan lies with in the power of manger then he sanction the loan otherwise manger with the covering letter along with all necessary documents sends it to the concerned sanctioning authority.

GENERAL BANKING
General banking area is also call the operations group. It consist on following section ACCOUNTS SECTION REMITTANCES

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National Bank of Pakistan

CLEARING SYSTEM GOVERNMENT RECEIPTS CONSUMER AND RETAIL BANKING LOCKERS

Types of accounts
Following types of accounts are open in NBP Saving account Current or demand account Fixed account

Saving account (PLS)

This type of account is designed to encourage the saving habit of the customer and lead to a long-term banking or investment relationship. Bank saving accounts are in the nature of deposits accounts and are not normally available for drawings. Rates of interest are typically ahead, by a small margin. Saving accounts with the banking sector represent a very small proportion of total deposits. Customer can make any withdrawals from type of account. The cash reserve ratio is typically low them the current account because the withdrawals against this account is very low. The minimum balance for this account is Rs.100.

Current or demand account

These are those deposits, which can be drawn by the depositor at my time by presenting a cheque to the bank. People deposit their money in this account they gave a ready command on their account in developed and under developed countries of the world, a very significant part of money is kept under current or demand account. On this type of account of interest transfer of cash or by cheque takes place at sight. The cash reserve ratio for this account is very high. The operating cost for the handling of this

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National Bank of Pakistan type of account is very high because withdrawals are very regular.

Fixed account
Fixed accounts are those, which are deposited for a fixed period of time and are repayable after the expiry of stipulated time to the customers. Those people who have surplus funds and want to have save investments deposit the amount in the fixed account. The rate of interest given to depositor varies with the length of deposit, i.e. it is higher for longer period and lowers for shorter period. The rates on this type of deposits are higher than the saving bank accounts. The cash reserves against this deposit are very low because there is no fear of withdrawal of a month before the stipulated of time. No paying books or passes book or cheque book is issued to the customers against this deposit to the depositors.

Procedure for Opening an Account

First of all, the customer gets an application from the bank, which requires all information necessary for opening account and also the documents required. An account can be opened as:

1. An individual account 2. Joint account 3. Proprietorship account 4. Limited company account 5. Partnership 6. Club, society, association and trust

Information Required by the Bank

Name Address Telephone No. Currency of Account Nature of Business Country of Residency Special instructions regarding the account Signatures

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Documentation In case of limited company accounts:

Photocopy of National Identity Card of each director Application form Copy of company's memorandum and articles of association List of directors Copy of board resolution Certificate of incorporation Their signature cards

Certificate to commence business

Documentation In case of Partnership Account

Application form A copy of partnership deed Signature cards of partners Registration certificate copy

A copy of National Identity Card of each partner

Documentation In case of Club, Society, Association or Trust

Application form Copy of rules Certified copy of resolution Signature cards When the concerned officer is satisfied then he opens the account and gives an account number that will be used in all communications with the bank in regard to the account and when making deposits and withdrawals. Bank has the right not to open an account without assigning any reason or to close the account if it is not operated in a satisfactory manner by the instructions of the head office.

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ISSUANCE OF CHEQUE BOOK

After opening the account, a cheque book is given to the customer to sign upon which the number of cheque book issued and the name of the customer is written. Bank issues a cheque book against requisition. A cheque book may be of 20 (PLS), 25, 50 or 100 leaves (current A/C). Rs. 4.50 per leaf as excise duty is charged to the customer. A cheque book register is maintained by the office. In this register, the cheque book inventory, cheque books issue are recorded.

PREPARATION OF DAILY ACTIVITY REPORTS

As far as the daily activity reports of this department are concerned, these include the following heads:

Voucher collecting of

Loan transactions General ledger transactions Foreign currency related transactions

Fixed deposit related transactions The checking is on daily basis.

REMITTANCES SECTION
Remittances can be made through:

Instrumental transfer

Electronic transfer

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a. Instrumental Transfer
Instrumental transfers are following

Demand Draft
It is an instrument, which is payable on demand and it is only presentable in the city/country. When any draft, i.e., an order to pay money, drawn by an office of bank upon another office of the same bank for a sum of money payable to order on demand, purports to be issued by or on behalf of the payee, the bank is discharged by the payment in due course. When a person requires a draft, he should be asked to complete the prescribed application form in which he should state the amount of the draft, the name of the payee, and the place of payment. The person to those persons, who have been duly authorized to act on his behalf, should sign this application form. An advice is prepared and two copies of this advice are sent to the Head Office. The bank charges 3% withholding tax and commission according to the rate list (minimum is Rs. 200).

Pay Order
It is an instrument, which is payable in demand and only presentable in city. Pay order is also called the banker's cheque drawn upon the issuing bank itself. It is not negotiable and therefore, bankers tend to cross the instrument "Payee's account only" to avoid the possibility of dealing with instruments with forged endorsement. The pay order is issued favoring individuals, commercial concerns, government departments. On the presentation of pay order, the bank is liable to pay the amount to the customer. Bank charges excise duty of Rs. 4 and service charges of Rs. 100.

Pay Slip
It is an instrument, which is issued by bank and used for expenditure purposes, i.e., electricity bills, maintenance bills, security bills, fixture and fitting, etc.

Call Deposit
Call deposit are not actual deposits of bank. It is in fact the liability of the bank. Call deposit are ofently prepaid by the bank for contractors

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FINANCIAL ANALYSIS FOR BANK

Financial year
The financial year of the Bank commences from the 1st day of January and ends on the 31st day of December every year.

Non-performing loans
As on 31 December 2002, the Bank's non-performing loans (NPLs) amounted to Rs. 30,323 million, which was 19.11% of total advances as against 21.48% as on 31 December 1999, showing an improvement of 2.37%. Provision against non-performing advances was Rs 18,296 million as on 31 December 2000, which is 60.34% of NPLs. This high ratio reflects prudence of the Bank's management while determining provisions. Remaining NPLs are covered by forced sales value of mortgaged property, Federal Government Guarantee or are in category other than loss. The Special Assets Group at Head Office with full co-ordination between field functionaries and Head Office is monitoring NPLs and deals with the classified portfolio of the Bank along with Remedial Management, Legal framework, Statistical Analysis of classified accounts, Revival of Sick Industrial Units, Consortium Financing and Ex-Mehran Bank Limited affairs etc.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS (SWOT) ANALYSIS STRENGTHS

NBP one of the largest financial institutions of Pakistan with eight million of customer base 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.

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NBP has an extensive domestic branch network of 1200 (according to the latest data) branches located all over Pakistan. The Bank also has a presence in 19 international locations including the USA, United Kingdom, Europe and the Far East. NBP's total assets stood at Pak Rs.370 billion on December 2000. This included total earning assets of about Pak Rs.268 billion with gross loan portfolio of Pak Rs.140 billion. The bank also has an investment portfolio of Pak Rs.91 billion, which comprises treasury securities, corporate bonds, shares and other securities. NBP cash provision as percentage of non performing loans equal to 60% this coverage factor for the non performing loans is the highest amongst the nationalized commercial bank. NBP is working as right arm government of Pakistan as it is responsible for all claims of government for recovery as well as payment. All depositor of NBP are in relief that their money security is guaranteed by government of Pakistan. It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch.

WEAKNESSES
NBP staff especially at lower considers their work as burden. They usually waste time in other task a part in performing their duty. Using government property for there own need. They are reluctant to accept change brought by latest restructuring efforts. The general out look and interior layout of branches are not as required according to modern banking NBP bearing up large burden in running those branches, which are not producing any income but keep on adding expenditure. NBP is relying on its traditional sources of income it has not taken benefit from innovation in banking like introducing retail banking or consumer banking and using any type of scheme to generate more deposits and producing more advances. Further, more don't even continue its credit card due mismanagement and lack of control.

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NBP is far behind in offering modern banking facility like automated teller machines then other commercial bank in Pakistan as only eighteen branches in all over country have this facility. NBP has only forty-four on line branches. While from remaining branches data gathering is time consuming, and not fool proof. Quantum of settlement within different branches is pending because of this updating daily record is becoming very difficult. Customers have to fallow long lengthy procedure for opening of account as well applying for debt. Which discourage most of the people to invest in NBP. In NBP, most of the time merit not has importance in hiring of employees. Such practices are black spot on the face of bank and resulted big losses and fraudulent acts by NBP own employees.

OPPORTUNITIES
Reorganizing efforts going on in the NBP has open many opportunities for NBP to grow. NBP current management has boarder vision. They have taken steps to improve customer services, streamline internal procedure and creating a delectating climate for technology initiative. To achieve above mention objective they have created operation group Starting of the retail banking initial working. Setting of target for of making at least 300 branches country wide on line. Closing of all those branches, which are burden on NBP. Management to offer specialized services to major corporate including advisory and debt syndication introduces the concept of relationship manager. Comprehensive training programs has been develop to up grade the core banking skills of the existing staff as well as integrate high quality hiring. To improve the motivation of staff a merit-based culture is being promoted. Through overhauling the manpower recruitment preservation and performance appraisal system. These 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.

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THREATS
Following are the major threats which national bank of Pakistan is facing: Major threats NBP facing is from its competitor especially from denationalized commercial bank. In which MCB is on the top of the list, The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 15 cities with over 100 ATM locations. Retail banking and consumer banking resulting in the products such as credit cards, housing finance and automobile finance lending to small individual consumers, and purchases of automobiles, housing, and consumer goods are generally made on a cash basis. These are causing another threat, if not counter will result in significance loss of customers Recently banks and other financial institutions have introduced innovative schemes to attract deposits, like gift checque scheme by MCB. These schemes offer prizes on short and long term fixed deposits, through lucky draws. Now banks are using technology which covers the distance no matter how far away any one, through a satellite based, on-line real-time banking system and by offering telephone banking, electronic funds transfer, E-Banking and other modern facilities.

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Recommendations
NBP major fault is that wasn't keep its pace with on going changing in banking industry unlike other bank. Now this bank combining all it power and trying to approach other banks. Latest reorganizing efforts are necessary to make it cost effective also making its facility accordingly to modern banking. These must continue. Bank management has to put its all effort to change the prevailing culture of the bank and to put the foundation stone of business oriented culture. In which employees give important to the bank and its customer. To attract the customer in the future NBP have to make extensive effort to give facilities of retail and consumer banking. Plus the technology in the banking which will be necessary for future banking is another week area need to be stressed. The outlook and interior lay out of the branches is another thing which needs to be improved. The procedure of taking services from the bank must be made easier and straight forward not involving long difficult procedure for simple task. To remain in the market bank need to be vigilant in the eyes of customer. One way is through promotion efforts, so that people aware about he services of the banking and any addition which the bank as made in the portfolio of its services.

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