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Virtual University of Pakistan Evaluation Sheet for Internship Report Spring 2011

FINI61 ! Internship Report "Finan#e$ %re&it 'ours! (

Evaluation %riteria Report ,riting Presentation - Viva vo#e Final Result Na)e of Stu&ent! Muhammad Afaaq

Result Pass

Stu&ent*s I+!

MC090400284

Finan#e "FINI.61 $ Internship report of National /ank of Pakistan

10 1itle Page!
Name of the organization: National Ban of Pa istan Name of the !nternee: Muhammad Afaaq "tudent !#: MC090400284 "ession: 2009 $ 2011 "u%mission date of the internshi& re&ort: 0'$0'$2011 Name of the (ni)ersit*: +irtual (ni)ersit* of Pa istan

VU logo!

20 2etter of Un&ertaking

(0 S#anne& #opy of the internship #ertifi#ate "provi&e& 3y the organi4ation$

50 +e&i#ation

6t first &e&i#ating this ,ork to 6l)ighty 6226'7 ,ithout his )er#y an& sy)pathy I ,as not a3le to a##o)plish this ,ork 6l)ighty 6226' gave )e po,er an& 4

#onfi&en#e to &one )y internship an& also '829 PR8P'E1 '6:6R61 ;U'6;;6+ "Pea#e 3e upon hi)$ ,ho is a light for hu)anity0 I also &e&i#ate this ,ork to )y lovely parents an& also &e&i#ating this ,ork to our honora3le instru#tor of Fini61 ,ho help )e a lot to &o )y ,ork a##urately an& gui&e )e in )y every &iffi#ulty0

<0 6#kno,le&ge)ent
1st of all ! than s to m* Almight* A--A. /ho ga)e me &o/er and 0onfiden0e to done m* internshi& and .1-2 P31P.45 .A6A3A5 M(.AMMA# 7Pea0e %e u&on him8 /ho is a light for humanit*9

!n starting am little %it 0onfuse %e0ause its m* 1st e;&erien0e to /or in &ra0ti0al life %ut m* 1st e;&erien0e is )ar* good ! man* good &eo&les hel& me to do m* /or effe0ti)el* s&e0iall* m* instru0tor of <!N! =19 hel& me a lot /hen ! 0onfuse in some &arts of internshi& ! mail to instru0tor res&e0ted "ir /ere al/a*s read* to guide me during the re&ort /or > /hi0h ga)e me a lot of %a0 $u&9 ! also than s to m* %an em&lo*ees of the NBP /ho remained su&&orti)e and 0oo&erati)e throughout the re&ort to 0om&lete it and s&e0iall* %ran0h Manager Miss Asia Aslam9 M* some senior friends also guide me to ma e m* internshi& re&ort ! /ould li e to sa* than s to all that &eo&les9 Allah %lesses them all and gi)es su00ess all in e)er* field of life9

60 E=e#utive su))ary
! am doing m* internshi& in famous and re&uted %an of Pa istan the name of that %an is National Ban of Pa istan the re&ort is %ased on m* si; /ee s internshi& &rogram in National Ban of Pa istan9 A00ording to m* o%ser)ation during internshi& the NBP maintains an e;0ellent &osition in %an ing se0tors in Pa istan and this is %ased on the o)er all &erforman0e of National Ban of Pa istan9 5his re&ort 0ontains the detail of NBP and the de&artments /here ! /or ed during internshi& and these de&artments in0ludes A00ount 1&ening #e&artment> Bill Colle0tion #e&artment> Cash #e&artment> Credit #e&artment and 3emittan0e #e&artment9 !t also in0ludes the 3atio Anal*sis and these ratios in0lude all ratios that m* uni)ersit* required /ith 0om&lete formula> /or ing> ta%le> gra&h and inter&retation9 ! also mention m* /or e;&erien0e during internshi& in different se0tors9 ! also dis0uss in m* re&ort the e;e0uti)e summar* of NBP and 3e0ommendations for !m&ro)ement and the sour0es that ! used to ma e this re&ort9 ! ha)e learned and informed a%out different

as&e0ts s&e0iall* a%out %an ing se0tor> it?s m* 1st /or ing e;&erien0e so it /ill hel& me /hile ! /ill %e &rofessional9 NBP has 12:4 nation/ide and almost 2: %ran0hes o&erating in other foreign 0ountries in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Bangladesh> and .ong @ong9 5he o%Ae0ti)e of this !nternshi& /as to e;&lore the issues relating to <inan0e and to find out &ro%lems regarding the theoreti0al 0on0e&ts /ith &ra0ti0al e;&erien0e /or ing in an organization during the internshi& and stud* the s*stem of National Ban of Pa istan9 A00ording to m* no/ledge there is mu0h &ossi%le &erfe0tions> /hi0h /e 0an ma e &ositi)e 0hanges in the s*stem of NBP in 0oming *ears9 !n this m* NBP re&ort ! also tal a%out the /a* of in)estment> rates of in)estment> all t*&es of finan0ing and loans ser)i0es the National Ban of Pa istan &ro)ides9 5he &ro%lems of %ran0h /here ! am doing internshi& <$10 mar az %ran0h are also dis0ussed9

>0 1a3le of #ontent


2esson No0 1itle ? 1opi#

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a0 30 #0 &0 e0

1itle page
Na)e of the organi4ation Na)e of the Internee7 Stu&ent I+ an& session Su3)ission &ate of the internship report Na)e of the University VU logo

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a0 30 #0

2etter of Un&ertaking S#anne& #opy of the internship +e&i#ation 6#kno,le&ge)ent E=e#utive su))ary 1a3le of #ontents /rief intro&u#tion of the organi4ation*s 3usiness se#tor 8vervie, of the organi4ation
/rief history 8rgani4ational 'ierar#hy #hart /usiness volu)e "1otal nu)3er of sto#k7 shares7 3on&s? #o))o&ities7 future #ontra#ts planne& for a parti#ular

Page No0 1 1 1 1 1 1 2 ( 5 < 6 .10 11.21 11.1( 15.1< 16

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perio& et#$0 Pro&u#t lines "2ist #o)plete range of pro&u#ts? servi#es of the organi4ation$ %o)petitors /rief Intro&u#tion of all the &epart)ents %o))ents on the organi4ational stru#ture

1> 1@ 1 .20 21 22 1> 1> 1> 2( 2( 2< 26 2> 2@ 2 2

100 a0 30 #0 110
1 2n& (r& 5th <th
st

Plan of your internship progra)


6 3rief intro&u#tion of the 3ran#h ,here you &i& your internship Starting an& en&ing &ates of your internship Na)es of the &epart)ents in ,hi#h you got training an& the &uration of your 1raining

1raining progra)
6##ount 8pening +epart)ent /ill %olle#tion +epart)ent %ash +epart)ent %re&it +epart)ent Re)ittan#e +epart)ent

120
a$ 3$ #$

Ratio 6nalysis
2iAui&ity Ratios 2iAui&ity ratios )easure a fir)*s a3ility to )eet its #urrent o3ligations0 %urrent Ratio 6#i& 1est Ratio Borking #apital 2everage Ratios 2everage ratios )easure the &egree of prote#tion of suppliers of long ter) fun&s0 1i)es Interest Earne& +e3t Ratio +e3t ? EAuity Ratio +e3t to 1angi3le Net ,orth Ratio 1otal %apitali4ation Ratio Profita3ility Ratios Profita3ility ratios )easure the earning a3ility of a fir)0 Net Profit ;argin Return on 6ssets +uPont Return on 6ssets 8perating In#o)e ;argin

2 (1 (( (<

(< (> (@ 50 51 5(

5( 5< 5> 5

&$

e$

Return on 8perating 6ssets Return on 1otal EAuity Cross Profit ;argin 6#tivity Ratios 6#tivity ratios )easure a fir)Ds a3ility to #onvert &ifferent a##ounts ,ithin their 3alan#e sheets into #ash or sales0 1otal 6ssets 1urnover Fi=e& 6ssets 1urnover ;arket Ratios ;arket ratios are #o))only use& 3y the investors to assess the perfor)an#e of a 3usiness as an invest)ent an& also the #ost of issuing sto#k0 +ivi&en& per share Earning per Share Pri#e?Earning Ratio

<0 <2 <5 <<

<6 <> <

1(0 150 1<0 160 1>0

Future Prospe#ts of the 8rgani4ation %on#lusion Re#o))en&ations for I)prove)ent Referen#e - Sour#es use& 6nne=es

< 61 6( 6< 66.6> 6@.>0 >1 >1

@0 /rief intro&u#tion of the organi4ation*s 3usiness se#tor


Am doing m* internshi& in NBP f$10 %ran0h mar az !slama%ad no/ ! /ill dis0uss the %rief introdu0tion of national Ban of Pa istan in %usiness se0tor 5he national %an of Pa istan /as esta%lished in 9 th No)em%er 1949 under the ordinan0e B!B9 5he NBP 0ommen0ed its o&erations from 20th No)em%er 19499 5he Ban /as in0or&orated under the National Ban of Pa istan 1rdinan0e 1949 and is listed there Pa istani sto0 e;0hanges9 5he %an 0ontrols treasur* dealings for the Co)ernment of Pa istan as a re&resentati)e to the "tate Ban of Pa istan9 NBP offers a 0ommer0ial %an ing and interrelated ser)i0es in Pa istan as /ell as out side of Pa istan9 5he %usiness se0tor of NBP is %an ing se0tor and the %an s &la*s a )ital role in an e0onom* of 0ountr* NBP also &la*ed an im&ortant role NBP also &ro)ide %an ing or finan0ial ser)i0es in

Pa istan %an &la*s a maAor &art in e0onom* no/ a da*s the 0urrent e0onomi0s 0risis in united stares and 4uro&e as /ell as Pa istan as /e see da* %* da* do/n sizing and is %e0ause the ongoing /ea ness of maAor %an and the result of all this is 0redit and 0a&ital 0rush so /e 0an sa* its &ro)e from histor* that the %an ing se0tor is &la*s a )ar* im&ortant role in national and glo%al e0onom*9 National %an of Pa istan &ro)ides to its 0ustomers the follo/ing %enefits sa)ing a00ounts> home finan0ing> &ersonal loans> A5M and de%it 0ards> finan0ing fa0ilit* for sto0 in)estors> !nternet %ased home remittan0e ser)i0e> 0ash against gold> and &ersonal a00ident insuran0e these %enefits is )ar* useful for 0ustomers9 !n %et/een 2002 to 200' the a00elerated e0onom* gro/th of Pa istan /as under&inned %* a strong %an ing se0tor the %an ing industr* assets is a%o)e D=0 its &rofit remain high and its NP-" are lo/9 Pa istan is !slami0 0ountr* and the national %an of Pa istan offers is !slami0 %an ing ser)i0es these ser)i0es in0lude de&osit s0hemes> li e 0urrent de&osit s0heme and &rofit and loss sharing de&osit s0heme and also finan0ing fa0ilities and also &ro)ided letters of 0redit fa0ilit*> issuan0e of %an drafts and &a* orders> handling of remittan0es> go)ernment 0olle0tions> 0olle0tion of e;&ort %ills and lo0al %ills> and utilit* %ills 0olle0tion ser)i0es9 !t also &ro)ided international %an ing trade that &ro)ide ser)i0es 0om&rise letters of 0redit> trade finan0ing> international &a*ments and 0olle0tion ser)i0es> stru0tured trade finan0e> do0ument &resentation and &a*ment ser)i0es> &reE and &ostE shi&ment finan0ing> %an EtoE%an reim%ursements> do0umentar* 0redits> im&ort finan0e> shi&&ing guarantees> and 0ash management solutions9 NBP is go)ernment %an so &eo&les trust to NBP is high as 0om&are other %an s and NBP &ro)ides trustee ser)i0es to national in)estment trust> long$term 0redit fund> and endo/ment fund for student loans s0heme9

10

0 8vervie, of the organi4ation


a0 /rief history
'istory! NBP /as esta%lished under the National Ban of Pa istan 1rdinan0e in No)em%er 8 1949 in Pa istan and / a s 1 0 0 F g o ) e r n m e n t o / n e d 9 5he need for the esta%lishment 0ame due to the reason of ne/l* 0ountr* /ith e0onomi0s 0risis9 !n Gul* 1948 to 0arr* on the res&onsi%ilities of issuing the 0urren0* and most im&ortantl* 0ontrolling the flo/ of mone* in side the 0ountr*9 Role! 5he "&e0ial 3ole of National Ban of Pa istan is o00u&ies a unique &osition in the finan0ial se0tor of Pa istan9 !t also a0ts as an agent of the Central Ban /here)er the "tate Ban does not ha)e its o/n Bran0h9 !t also underta es Co)ernment 5reasur* o&erations9

11

8,nership! NBP is 100F o/ned %* the Co)ernment of Pa istan9 /ran#h Net,ork! NBP has an e;tensi)e domesti0 %ran0h net/or of o)er 1:00 %ran0hes lo0ated all o)er Pa istan9 5he Ban also has a &resen0e in 24 international lo0ations in0luding the ("A> (nited @ingdom> 4uro&e and the <ar 4ast9 +eposits of National 3ank of Pakistan! NBP holds 249=F share of time and demand de&osits in the 0ountr*9 -o0al 0urren0* de&osits 0om&rise ='F of %an Hs total de&osits /hile foreign 0urren0* de&osits a00ount for the rest9 'ea& offi#e an& /ran#hes! .ead offi0e of national %an is in @ara0hi /ith their 14,1 %ran0hes lo0al and 24 %ran0hes internationall*9 Provin#ial 'ea&Auarters! "indh 0=> Balu0histan 02> PunAa% 14> NI<P 0:> Azad @ashmir 02> total 299 6,ar&e&! National %an of Pa istan /as gi)en a/arded of %est %an of the *ear in 2001> 2002> and 2004 %* the %an er a &u%li0ation of finan0ial times -ondon9 !n 200: the national %an of Pa istan is also gi)en %est %an of the *ear %* the %an ers %* glo%al finan0e magazine9 National Ban has earned re0ognition and numerous a/ards internationall*9 !t has %een the re0i&ient of 5he Ban of the 2ear 2001> 2002> 2004 and 200: A/ard %* 5he Ban er Magazine> the Best <oreign 4;0hange Ban EE Pa istan for 2004> 200:> 200= and 200'> Clo%al <inan0e> Best 4merging Mar et Ban from Pa istan for the *ear 200:> Clo%al <inan0e> @isan 5ime A/ards E 200: for NBPHs ser)i0es in the agri0ulture field9 !t is listed amongst the 3egionHs largest %an s and also amongst the largest %an s in "outh Asia 200:> 5he Asian Ban er9 !t has also %een &resented a 3e0ognition A/ard EE 2004 for ha)ing a Cender "ensiti)e Management %* I4BC1P AA".A %esides other a/ards9 Pre#ise Su))ary of National /ank of Pakistan year 3y year 5he &re0ise summar* of National Ban of Pa istan regarding its 0ountr*/ide and o)erseas o&erations is as fallo/s: !n the *ear 1949 National Ban of Pa istan /as esta%lished under the National Ban of Pa istan 1rdinan0e 1949 and /as 100F go)t9$o/ned9 !n the *ear 19:0 NBP esta%lished a %ran0h in Geddah> "audi Ara%ia9 5he Ban in 19:0 had one su%sidiar* J5he Ban of Baha/al&ur? on #e0em%er4>

12

!n the *ear 194' %* the former Baha/al&ur "tate !n the *ear 19:: B* this time NBP had %ran0hes in -ondon and Cal0utta9 !n the *ear 19:' NBP esta%lished a %ran0h in Baghdad> !raq9 !n the *ear 19=2 NBP esta%lished a %ran0h in #ar$es$"alaam> 5angan*i a9 !n the *ear 19=4 5he !raqi go)ernment nationalized NBPHs Baghdad %ran0h9 !n the *ear 19=: 5he !ndian go)ernment seized the Cal0utta %ran0h on the out%rea of hostilities %et/een !ndia and Pa istan9 !n the *ear 19=' 5he 5anzanian go)ernment nationalized the #ar$4s$"alaam %ran0h9 !n the *ear 19'1 NBP a0quired Ban of ChinaHs t/o %ran0hes> one in @ara0hi and one at Chittagong9 At se&aration of 4ast Pa istan NBP lost its %ran0hes there9 NBP merged /ith 4astern Mer0antile Ban and /ith 4astern Ban Cor&oration9 !n the *ear 19'4 the go)ernment of Pa istan nationalized NBP9 As &art of the 0on0omitant 0onsolidation of the %an ing se0tor> NBP a0quired Ban of Baha/al&ur 7est9 194'89 !n the *ear 19'' NBP o&ened an offshore %rain Cairo9 !n the *ear 1994 NBP amalgamated Mehran Ban 7est9 199189 !n the *ear 199' NBPHs %ran0h in Ashga%at> 5ur menistan 0ommen0ed o&erations9 !n the *ear 2000 NBP o&ened a re&resentati)e offi0e in Almat*> @aza hstan9 !n the *ear 2001 "tate Ban of Pa istan and Ban of 4ngland agree to allo/ onl* 2 Pa istani %an s to o&erate in the (@9 NBP and (nited Ban agreed to merge their o&erations to form Pa istan !nternational Ban > of /hi0h NBP /ould o/n 4:F and (nited Ban ::F9 !n the *ear 200, NBP re0ei)ed &ermission to o&en a %ran0h in Afghanistan9 !n the *ear 200: NBP 0losed its offshore %ran0h in Cairo /hi0h o&ened in 19''9 1,

30 8rgani4ational 'ierar#hy #hart


"*ed Ali 3aza Chairman NBP Board of #ire0tors Kamar .ussain President NBP
14

M39 5ariq @irmni #ire0tor Mrs9 .ani*a "hahid Naseem #ire0tor Ms Nazrat Bsahir #ire0tor Mr9 4 hlaq Ahmed "e0retar* Board of #ire0tors 8rgani4ational 'ierar#hy %hart at N/P 'ea& 8ffi#e Eara#hi

8rgani4ation %hart of N/P

1:

#0 /usiness volu)e

1=

In ;illions
+es#ription Profit 3efore ta= Profit after ta= Sharehol&er *s eAuity 6&van#es F net 1otal 6ssets +eposits Invest)ents Earnings per share 2006 2=>,11 1'>022 ,:,>04: ,1=>110 =,:>1,, :01>='2 1,9>94' 129=: 200> 28>0=1 19>0,4 =9>2'1 ,40>,19 '=2>194 :91>90' 211>14= 1491: 200@ 2,>001 1:>4:9 81>,=' 412>98' 81'>':8 =24>9,9 1'0>822 11949 200 21>,00 1'>:=2 94>142 4':>24, 944>:8, '2'>4=: 21'>=4, 1,90: 2010 2>4>41: 1'>:=, 10,>'=2 4''>:0' 1>0,:>02: 8,2>1:2 ,01>,24 1,90:

&0 Pro&u#t lines


5he &rodu0t lines is gi)en %elo/
P34M!(M AM#AN! P34M!(M "A+43 "A!BAAN A#+ANC4 "A-A32 CA". CA3# !N+4"513 A#+AN5AC4 CA". AN# C1-# @!"AN 5AKA5 @!"AN #1"5 1'

PA@ 34M!5 P3154C5!1N ".!4-#

Servi#es
!slami0 Ban ing "tudent -oan "0heme #emand #rafts7##8 4quit* !n)estment Commer0ial <inan0e 5rade <inan0e !nternational <inan0e .ome <inan0e <oreign Curren0* A00ount "hort 5erm !n)estment N!#A7 National !n0ome #ail* A00ount8 <oreign remittan0e 5ra)elers Cheques "/ift "*stem -etter of Credit Pa* 1rder 7P18 Mail 5ransfer 7M58

e0 %o)petitors
No/ a da* in this /orld of 0om&etition the NBP is fa0ing mu0h 0om&etition9 5he 0om&etitors list of NBP is )er* large as there are man* &ri)ate and 0ommer0ial %an s o&erating in the 0ountr*9 Com&etitors of the NBP /hi0h are gi)en %elo/

MCB Ban -imited .a%i% Ban -imited .a%i% Metro&olitan Ban -imited 18

"audi Pa Ban -imited Atlas Ban -imited "!-@BAN@ -imited (nited Ban -imited Allied Ban -imited As ari Commer0ial Ban -imited Ban Al$.a%i% -imited Ban Al$<alah -imited9 "tandard Chartered Ban -imited <irst Iomen Ban 5he Ban of @h*%er Ban of PunAa% <a*sal Ban -imited Atlas Ban -imited Ban Alfalah -imited "oneri Ban -imited As ari Ban -imited

f0 /rief Intro&u#tion of all the &epart)ents


5here are man* de&artments of National Ban of Pa istan ! /ill /rite the follo/ing main de&artments of National Ban of Pa istan <$10 Mar az %ran0h and /here ! got training as internee are gi)en %elo/: 1st A00ount 1&ening #e&artment 2nd Bill Colle0tion #e&artment ,rd Cash #e&artment 4th Credit #e&artment

19

:th 3emittan0e #e&artment ! alread* des0ri%e in detail of these entire de&artment in m* internshi& re&ort 1ne %* one ! /ill summarize or o)er )ie/ all these again9

1st 6##ount 8pening +epart)ent!


!n m* 1st 2 /ee s of internshi& ! /or as an internee in a00ount o&ening de&artment in NBP9 !t?s a maAor de&artment of NBP the %asi0 &ur&ose of A00ount 1&ening #e&artment the relationshi& %et/een %an er$0ustomer9 A00ount o&ening de&artment &erforms the dut* of o&ening a00ounts and issues 0he0 %oo s to 0lients9 A &erson /ho requests to o&en an a00ount /ith the %an has to fill an a00ount o&ening form o%tained from an* %ran0h of National Ban of Pa istan9 1ypes of a##ounts that are opene& ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount is o&ened9 10 P2S 6##ount or P2S Saving 6##ount 20 %urrent 6##ount (0 Fi=e& +eposit 6##ount

2n& /ill %olle#tion +epart)ent!


! also /or in the %ill 0olle0tion de&artment in NBP during m* internshi&9 5he %asi0 &ur&ose of %ill 0olle0tion de&artment is 0olle0ted utilit* %ills from 0ustomers that he &a*s at end of e)er* month 5hese %ills in0lude Iater %ills Cas %ills 4le0tri0it* %ills 5ele&hone %ills

(r& %ash +epart)ent!


! also /or in 0ash de&artments during internshi& in NBP9 Cash de&art in )ar* sensiti)e de&artment o e)er* %an as /ell as National Ban of Pa istan No %od* is allo/ed freel* li e other de&artment this de&artment all de&end on 0ash a se0urit* guard is also standing for safe from theft and also sensiti)e de&artment some times 0ustomer &a*s frauds are made in this de&artment so e;tra 0are needed in this de&artment9

5th %re&it +epart)ent!


20

!n m* internshi& &rogram in NBP ! also /or in 0redit de&artment9 5he %asi0 &ur&ose of this de&artment id to 0olle0t s&are> e;tra or sur&lus mone* or 0urren0* from &eo&les or 0ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this mone* at high rates to get more and more &rofit9 No/ a da*s NBP gi)es a )ar* lo/ amount to 0ustomer %e0ause in Pa istan there is insta%ilit* and da* %* da* the in)estor go out from Pa istan %e0ause of in se0urit* finan0ial 0rises is also %ig 0ause of it so the loan ratio is )ar* lo/ do/n da* %* da* /ith the &assage of time9

<th Re)ittan#e +epart)ent!


<inall* in m* last /ee of internshi& as an internee in NBP ! /or in 3emittan0e #e&artment9 5he remittan0e de&artment transfers the mone* from domesti0 to international le)el9 A00ording to m* learning there are t/o 0ategories of remittan0e de&artment 1st one is domesti0 or lo0al remittan0e de&artment and the 2 nd one is foreign remittan0e de&artment9 !n lo0al remittan0e the transfer mone* /ith in national or domesti0 %oundaries and in foreign transfer mone* out side from national or international %oundaries !n m* internshi& &rogram the manager told me the main fun0tions of 3emittan0e #e&artment these main or im&ortant fun0tions ta es &la0es in the follo/ing /a*s ! o%ser)ed these are Closing and s0rolling of go)ernment 0olle0tions> issuing of &a*ment order> issuing of demand draft> issuing of 0all de&osit> issuing of Mail transfer and issuing of 0all de&osit9 !n NBP remittan0e ta es &la0es in the follo/ing /a*s9 5hese /a*s are gi)en %elo/9 1st 1elegraphi# ? ;ail 1ransfers an& its easy an& fastest ,ay 2n& one is +e)an& +raft ? Pay 8r&ers

g0 %o))ents on the organi4ational stru#ture


! understand during m* internshi& &rogram the 1rganizational "tru0ture NBP is 0entralized %ut need some 0hanges /ith the &assage of time %e0ause in this /orld da* %* da* te0hnolog* 0hanges and its ne0essar* to 0hange the 1rganizational "tru0ture time %* time and ! also o%ser)ed the NBP is the oldest %an of in Pa istan and in last =2 *ears a lot of 0hanges in NBP 1rganizational "tru0ture %ut ! o%ser)ed the 1rganizational

21

"tru0ture is not &rofessionall* de)elo&ed and im&lemented9 !n NBP <$10 Mar az Bran0h /here ! /or as internee in that de&artment all em&lo*ees in different de&artment /or &ro&erl* and here 1rganizational "tru0ture %ut also need some 0hanges9

100 Plan of ;y internship progra)


Intro&u#tion of 3ran#h Name of %ran0h: National Ban of Pa istan <$10 Mar az Bran0h Cit*: !slama%ad Bran0h Code: 19,, Bran0h manager: Miss Asia Aslam 1&erating manager: Mr9 Ali Phone Num%er: L92$0:1$9218',4

22

! did m* internshi& or training from National %an of Pa istan <$10M4 Mar az !slama%ad and %ran0h 0ode is 19,,9(nder the %ran0h manager Miss Asia Aslam9 !n this %ran0h of national %an the %ran0h manager is Miss Asia Aslam and Mr9 Ali is o&erating manager %oth are su&erior /or ing and )er* fair /ith their Ao%9 Ihen ! start m* internshi& ! fa0e man* diffi0ulties %e0ause its m* 1st e;&erien0e to do training or internshi& in an* /here so ! don?t ha)e e;&erien0e &ra0ti0al /or %efore %ut here 0oo&erati)e management s&e0iall* miss Asia Aslam Bran0h manager hel& me for m* this 1 st to 0om&lete m* tas s effi0ientl* and ! o%ser)ed the other management mem%ers or staff is also )ar* 0oo&erati)e /ho also hel& me in a friendl* manners9 !n start am little %it 0onfuse %ut after the o%ser)ed the 0oo&eration of staff ! enAo* m* internshi& ! also a&&re0iate and than s all management /ho hel& me to 0om&lete m* tas s in good manners9 +uration of ;y training or Internship Progra) 5he starting date of m* !nternshi& Program is ;ay 7 2011 5he ending date of m* !nternshi& Program is Gune 227 2011 Na)e of the +epart)ent in ,hi#h I ,orke& in )y internship0 Na)e of the +epart)ent A00ount 1&ening #e&artment Bill Colle0tion #e&artment Cash #e&artment 3emittan0e #e&artment9 +uration 2 Beeks 1 Beek 1 Beek 1 Beek

110 1raining progra)


M* training or internshi& &rogram from National Ban of Pa istan <$10 Mar az Bran0h !slama%ad ! also mention the de&artments /here ! /or as internee that is gi)en %elo/9

1st 6##ount 8pening +epart)ent 2n& /ill %olle#tion +epart)ent (r& %ash +epart)ent 5th %re&it +epart)ent

2,

<th Re)ittan#e +epart)ent


1ne B* one ! /ill des0ri%e in detail of all m* training &rogram de&artments

1st 6##ount 8pening +epart)ent


5he a00ount o&ening de&artment is a first de&artment /here ! learned and s&ent m* internshi& ma;imum &eriods 2 /ee s as 0om&ares to other de&artments9 !n m* )ar* 1 st da* ! am little %it 0onfused to start and learned a%out de&artment %e0ause its m* 1st e;&erien0e &ra0ti0all* %ut the 0oo&erati)e staff and %ran0h manager hel& me to understand all &ro0edure no/ ! o%ser)ed ho/ the em&lo*ee /or in this de&artment and /hat is the requirements to o&en the a00ount and /hat is the rules and &ro0edure to follo/ the 0ustomer9 !n this de&artment requires some %asi0 requirements for o&en an a00ount of 0ustomer the 0ustomer must ha)e the referen0e of an* residen0e of Pa istan /ho has alread* a00ount holder of National Ban of Pa istan and /hen 0ustomer gi)es referen0e of some ones /ho has a00ount in NBP the %an 0onfirms it /ith NA#3A9 After , or 4 da*s ! learned man* things a%out o&ening a00ount and rules and &ro0edures and also the requirements li e /hat is the title of a00ount> address of the 0ustomer> re0ent !# 0ard num%er> National ta; num%er> P5C- and Mo%ile num%er amount de&osit> signature> -a/ must qualif* the 0ustomer> Age of maAorit* and must %e of sound mind 5han ! learned and o&ened a a00ount of 0ustomer under su&er)ision of staff and these &ro0edure must %e follo/ed the 0ustomer 0ome to %an and meet the manager a%out a00ount o&ening &ro0edure than manager guide him or her a%out the a00ount he or she /ants to o&en in the %an than manager guide me and ! follo/ the rules no/ gi)e to 0ustomer a00ount o&ening form along /ith do0ument li e signature 0ard and Pa*$in$sli&9 5han the 0ustomer fill the a00ount o&ening from if he has an* diffi0ult* than management or a00ount o&ening offi0er guide him or her and /hen 0ustomer fill are form this form sent to manager for a&&ro)al than the 0on0erned offi0er gi)es ne/ a00ount num%er and guide to de&osit initial de&osit in 0ash 0ounter9 And 0he0 %oo gi)es to 0ustomer a00ording to 0ustomer need or requirement %e0ause some 0he0 %oo s has 2:> :0 and more it?s de&end on 0ustomer requirement9 Ihen ! o&ened some a00ounts than ! no/

24

the &ro0edure and after this it?s )ar* eas* for me %e0ause ! no/ no/ all &ro0edures to o&en a a00ounts and ! o&ened some a00ounts 1ypes of a##ounts that are opene& ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount is o&ened9 10 P2S 6##ount or P2S Saving 6##ount 20 %urrent 6##ount (0 Fi=e& +eposit 6##ount 5he details of these a00ounts are gi)en %elo/ one %* one9

10 P2S 6##ount or P2S Saving 6##ount


1st ! /ould li e to dis0uss the P-" a00ount or P-" sa)ing a00ount that ! learned from manager it is interest free a00ount mostl* the lo/er or middle in0ome le)el or small %usiness man> Allam or Moulana or &eo&le /ho don?t li e interest li e usuall* ma e su0h de&osit in this a00ount the transa0tion9 !n this a00ount the transa0tion is not e)er* da* or dail*9 <unds 0an normall* de&osited through &a* order> 0ash> 0he0 et09

20 %urrent 6##ount
2nd ! li e to dis0uss the 0urrent a00ount that ! learned from manager this a00ount or 0urrent a00ount it?s de&end on dail* %ases normall* through 0heque> A5M> Pa* order et0 dra/n on the %an and these de&osit stand the 0urrent lia%ilit* of the %an 9 5he %an fund of his hand and 0ustomer normall* use this a00ount mostl* no/ a da*s through A5M %e0ause its )ar* eas* and ad)an0ed method9 And there is no limit for de&osit9 ee&

(0 Fi=e& +eposit 6##ount


,rd ! /ould li e to dis0uss the fi;ed de&osit a00ount ! learned from manager that this a00ount normall* o&ened and high fa0ult* or e;tra ordinar* &eo&le or %usiness man for a long &eriod of time and this t*&e of a00ount is less use as 0om&are to other a00ount9 !n this a00ount the 0ustomer in)est in different se0tor for a long &eriod of time /here his or 2:

her mone* is sa)ed from theft and also /ith higher return9 5he other a00ount ! o&ened %e0ause these are dail* use a00ounts and normal or middle 0lass &eo&les use %ut this fi;es a00ount ! don?t o&ened %e0ause in m* in m* &eriod of internshi& there in onl* 1 or 2 &eo&les /ho o&ened this a00ount ! learned %ut not a00urate so ! got more information from the manager of the %an 9

2n& /ill %olle#tion +epart)ent


!n m* internshi& &rogram ! also /or ed in Bill Colle0tion de&artment in one /ee 9 !n 1st da* in %ill 0olle0tion de&artment 1 get information from manager a%out the fun0tion> rules and &ro0edure in)ol)e in %ill 0olle0tion de&artment after get information from manager ! see or o%ser)ed %ill 0olle0tion de&artment 0olle0ts different utilit* %ills /hi0h &eo&les &a* e)er* months9 5hese %ills in0lude

Bater 3ills Cas 3ills Ele#tri#ity 3ills 1elephone 3ills


! 0olle0t some %ills a00ording to instru0tion that manager gi)es me a%out %ill 0olle0tion de&artment and in %ill 0olle0tion de&artment m* dut* is /hen 0olle0t %ill is must see the due date and /hat?s the amount 0olle0t in due date and these are /ritten in e)er* %ill and after date %e0ause after date e;tra amount &aid or late &a*ment 0harges &aid %* the 0ustomer if %ill not &aid /ithin due date9 Also mention in %ill manuall* if 0ustomer gi)es %ig note li e note of 3" :000 and %ill id 10:0 than in %ill /ritten manuall* :000$10:0 N ,9:0 it means 0ustomer gi)e :000 note and %ill amount is 10:0 /e dedu0t from :000 and /e gi)es ,9:0 the remaining amount to 0ustomer9 5he amount re0ei)ed li e in due date amount re0ei)ed 0ir0le the re0ei)ed amount /ithin due date and if &a*ment id after due date 0ir0le after date and in after date late &a*ment 0harges in0luded and 0ir0le and 0olle0t mone* and than %an stam& and also sigh on it is its guarantee that this means f$ 10 mar az !slama%ad %ran0h re0ei)ed this %ill9 5he %an also 0harges 0ommission in ea0h %ill that is re)enue of the %an and also for go)ernment of Pa istan9 At the end of

2=

the da* all amount 0ounts 0ount that re0ei)ed from from re0ei)ed against %ill 0olle0tion from 0ustomers and gi)es %* the rele)ant %ill 0olle0tion de&artment and %ill 0olle0tion de&artment sends mail to the head offi0e9

(r& %ash +epart)ent


!n duration of m* internshi& in NBP as internee ! /or in 0ash de&artment fro 1 /ee 9 !n 0ash de&artment 1st ! tr* to understand /or ing &ro0edure in this de&artment ! also o%ser)ed that 0ash de&artment is the most im&ortant se0tion in the %an 9 Cash de&artment &erform the fun0tion of %an &a*ment and re0ei&t> go)ernment re0ei&t and &a*ment and 0olle0tion of utilit* %ills 5he 0ash de&artment is )ar* im&ortant and sensiti)e %e0ause in this de&artment no %od* is allo/ed freel* li e other de&artment this de&artment all de&end on 0ash a se0urit* guard is also standing for safe from theft and also sensiti)e de&artment some times 0ustomer &a*s frauds are made in this de&artment so e;tra 0are needed in this de&artment9 And if 0losing the %alan0e is not mat0h than the 0ashier must mat0h it %efore lea)e this de&artment some times hours ta es to mat0h 0ash in this de&artment if 0ash not mat0h than 0ashier &a* /ith its o/n &a* or /ith o/n re0ourses "o 0ash de&artment is )ar* sensiti)e de&artment mostl* &eo&le 0ome for the &ur&ose of 0ash in this de&artment /ith dra/n and de&osit if an* a00ount holder 0omes to dra/ the amount it must % 0he0 ed the total amount on 0heque> date> signature of the a00ount holder> and then he gets &a*ment form the 0ash 0ounter from the 0ashier and some a00ount holder 0omes for the &ur&ose of de&osit the mone* in 0ash de&artment9

5th %re&it +epart)ent


As an internee ! /or and o%ser)ed in 0redit de&artment for the duration of 1 /ee in National Ban of Pa istan <$10 Mar az Bran0h !slama%ad9 5he %asi0 &ur&ose of this de&artment id to 0olle0t s&are> e;tra or sur&lus mone* or 0urren0* from &eo&les or 0ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this mone* at high rates to get more and more &rofit9 2'

A00ording to m* o%ser)ation and /or as internee in NBP during m* internshi& ! o%ser)e that the %asi0 &ur&ose of 0redit de&artment is &ro)ide load to load see ers9 5hese &eo&les get loan from %an and fulfill our requirements and %an 0harges interest against9 ! also o%ser)e no/ a da*s of te0hnolog* e)er* %an ado&t this method to get &rofit9 ! o%ser)ed /hen national %an of Pa istan <$10 %ran0h !slama%ad /hen NBP &ro)ide or gi)es to some one some %asi0 information 0olle0t %* the %an to redu0e fraud %e0ause no/ a da*s some fraud &eo&les gets illegall* loan from %an and 0ant return to %an some fraud &eo&les /rite /rong address and some are going out side of 0ountr* and that?s a %ig loss of %an so %an no/ a da*s %an 0onfirm it /ith the 0ustomers near &oli0e station a%out the re&utation of 0ustomer and NBP required some %asi0 information and 0riteria %efore gi)es loan to &eo&les some %asi0 information that %an s gets li e 0ustomer name> National !dentit* Card> 5he required do0uments 0he0 ed is it in original from or not9 No/ a da*s NBP gi)es a )ar* lo/ amount to 0ustomer %e0ause in Pa istan there is insta%ilit* and da* %* da* the in)estor go out from Pa istan %e0ause of in se0urit* finan0ial 0rises is also %ig 0ause of it so the loan ratio is )ar* lo/ do/n da* %* da* /ith the &assage of time9

<th Re)ittan#e +epart)ent


!n m* internshi& &rogram and also last /ee 3emittan0e de&artment in one /ee of m* internshi& ! also /or ed in 9! o%ser)ed or learned that main &ur&ose of

3emittan0e de&artment is to mo)e mone* from one &la0e to another &la0e9 5he remittan0e de&artment transfers the mone* from domesti0 to international le)el9 A00ording to m* learning there are t/o 0ategories of remittan0e de&artment 1 st one is domesti0 or lo0al remittan0e de&artment and the 2nd one is foreign remittan0e de&artment9 !n lo0al remittan0e the transfer mone* /ith in national or domesti0 %oundaries and in foreign transfer mone* out side from national or international %oundaries !n m*

28

internshi& &rogram the manager told me the main fun0tions of 3emittan0e #e&artment these main or im&ortant fun0tions ta es &la0es in the follo/ing /a*s ! o%ser)ed these are Closing and s0rolling of go)ernment 0olle0tions> issuing of &a*ment order> issuing of demand draft> issuing of 0all de&osit> issuing of Mail transfer and issuing of 0all de&osit9 Ihen ! /or in this de&artment ! also o%ser)ed the im&ortant &arti0ulars of demand draft filled> Name of the %ran0h on /hi0h draft is dra/n> Address of the a&&li0ant> signature of the a&&li0ant> e;0hange rates of the %an > 5otal amount in figure and also in /ords> name of the &erson /ho re0ei)e the mone*9 (nder the su&er)ision manager ! fill some demand draft that gi)es me some useful information a%out this de&artment and ! also /ant to get more and more information a%out this de&artment and manager hel& me a lot9 !n NBP remittan0e ta es &la0es in the follo/ing /a*s9 5hese /a*s are gi)en %elo/9 1st 5elegra&hi0 M Mail 5ransfers and its eas* and fastest /a* and 2 nd one is #emand #raft M Pa* 1rders Ban is res&onsi%le for remittan0e from one %an to another %an in 0ase 5his is m* last /ee on internshi& in national %an of Pa istan and /ord in remittan0e de&artment ! /or hard also 0oo&erati)e staff and manager reall* hel& me for this am than ful to all management and staff of National Ban of Pa istan <$10 %ran0h and also than ful fro %an %ran0h manager Miss Asia Aslam she hel& me lot in m* all !nternshi&

120 Ratio 6nalysis


a$ 2iAui&ity Ratios 2iAui&ity ratios )easure a fir)*s a3ility to )eet its #urrent o3ligations0 1hese in#lu&e! H %urrent Ratio

29

H 6#i& 1est Ratio H Borking #apital

Na)e of the ratio

%urrent ratio

F8R;U226 8F %URREN1 R61I8 1he for)ula of #urrent ratio is given 3elo, Bith the help of for)ula ,e #al#ulate or fin& #urrent ratio

%urrent Ratio I %urrent 6ssets ? %urrent 2ia3ilities


!t means /e add all 0urrent assets after add all 0urrent assets /e add all 0urrent lia%ilities and than di)ide 0urrent ratio /ith 0urrent lia%ilities As /e sho/n in gi)en %elo/

Sho, in ta3le
24A3"
Current assets Current lia%ilities %urrent Ratio

200@
:84>9''>140 =82>90:>4=1 00@6 ! 1

200
=4:>0=4>1=: '2:>29,>'20 00@ ! 1

2010
=9,>4=,>980 8='>=2=>,=' 00@0 ! 1

Borking! Bhi#h short ter) a&van#es an& invest)entsJ 8nly fi=e& &eposits ,ill not 3e #onsi&ere& here 'el& for tra&ing an& availa3le for sale ,ill 3e #onsi&ere& as #urrent

,0

%urrent asset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estment L "hort term Ad)an0es L 1ther asset 71nl* "hort 5erm8 After adding all 0urrent assets a00ording to gi)en format the 0urrent assets of 2008 N :84>9''>140 and 2009 N =4:>0=4>1=: and 2010 N =9,>4=,>980 %urrent lia3ility I Bills &a*a%le L "hort 5erm Borro/ing L "hort 5erm #e&osit and other a00ount L short term lia%ilities against assets su%Ae0ts to finan0e lease L other lia%ilit*71nl* short term8 After adding all 0urrent -ia%ilities a00ording to gi)en format the Current -ia%ilities of 2008 N =82>90:>4=1 and 2009 N '2:>29,>'20 and 2010 N 8='>=2=>,=' <inall* di)ide 0urrent assets /ith 0urrent lia%ilities ans/er is 0urrent ratio

Craphi#al Presentation of %urrent ratio

,1

Current Ratio

2010 2009 2008 0.75


Interpretation

0.8 0.89 0.86 0.8 0.85 0.9

5he 0urrent ratio sho/s in 2008 the 0urrent ratio of national %an of Pa istan is 098: it means the 0urrent assets in0reases not mu0h as 0om&are to 0urrent lia%ilities and in 2009 sho/s the in0rasing trends as 0om&are to 2008 the 0urrent ratio of 2009 is 0988 %ut again in 2010 it sho/s 09'9 that is mu0h less as 0om&ared to 2008 and 2009 9

Na)e of the ratio H 6#i& 1est Ratio


Bith the help of for)ula ,e #al#ulate or fin& Acid Test Ratio For)ula is given 3elo, 6#i& 1est Ratio I ;ore liAui& 6ssets?#urrent lia3ilities

,2

It )eans )ore liAui& 6ssets ? %urrent lia3ilities

Sho, in ta3le
24A3"
More liquid Assets Current -ia%ilities 6#i& test Ratio

200@
:82>2::>8'1 =82>90:>4=1 00@< !1

200
=,0>040>=28 '2:>29,>'20 00@> !1

2010
=91>1=0>4', 8='>=2=>,=' 00@0 !1

Borking!
;ore liAui& 6ssets I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estmentLshort term Ad)an0es L 1ther asset7short term8 $ad)an0e7de&osits> rent and other &re&a*ments89 %urrent lia3ility I Bills &a*a%le L "hort term Borro/ing L "hort term #e&osit and other a00ountLshort term lia%ilitiesagainst assets su%Ae0ts to finan0e lease L other lia%ilit*7short term8

Craphi#al Presentation of 6#i& 1est Ratio

2010 2009 2008 0.76 0.78

0.8 Acid Test Ratio 0.87 0.85 0.8 0.82 0.84 0.86 0.88

Interpretation!

,,

As /e see the more liquid Assets are less than 0urrent lia%ilities in all three *ears 2008> 2009 and 2010 %ut in *ear9 As /e see in gra&h the A0id 5est 3atio of 2009 is higher as 0om&are to 2008 and 2010 and /e 0al0ulate A0id 5est 3atio find all %* su%tra0t all &re&aid e;&enses from 0urrent assets to find it9

Na)e of the ratio H Borking #apital


5o find out /or ing 0a&ital ratio /e use the follo/ing formula that is gi)en %elo/

Bith the help of for)ula ,e #al#ulate or fin& Working Capital

For)ula! Borking %apital ratio I %urrent 6ssets . %urrent 2ia3ility Sho, in ta3le ;ake #orre#tiosn as instru#te& a3ove
24A3"
Current assets Current lia%ilities Borking #apital

200@
:84>9''>140 =82>90:>4=1 . >7 2@7(21

200
=4:>0=4>1=: '2:>29,>'20 .@0722 7<<<

2010
=9,>4=,>98, 8='>=2=>,=' .1>571627(@5

Borking %urrent 6sset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K "hort term !n)estment L short term Ad)an0es L 1ther asset7short term8 %urrent lia3ility I Bills &a*a%leL "hort term Borro/ing L "hort term #e&osit and other a00ount L "hort term lia%ilities against assets su%Ae0ts to finan0e lease L other lia%ilit*7"hort term8

Craphi#al Presentation of Borking #apital

,4

-174,162,384 -80,229,555 -97,928,321

2010 2009 2008 0 Workin Ca!ita" ratio

-200,00 -150,00 -100,00 -50,000, 0,000 0,000 0,000 000


Borking!

%urrent asset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estment L "hort term Ad)an0es L 1ther asset7"hort term8 %urrent lia3ility I Bills &a*a%le L "hort term Borro/ing L "hort term #e&osit and other a00ount L "hort term lia%ilities against Assets su%Ae0ts to finan0e lease L 1ther lia%ilit*7"hort term8

Interpretation!
Ie see in all three *ears 2008> 2009 and 2010 this 0an sho/ the negati)e trend /hi0h is the %ad sign for the 0om&an*9 !t due to the in0reasing of 0urrent lia%ilities or the e;0ess of lia%ilities o)er 0urrent assets9 !n 2010 negati)e sigh in to mu0h high as 0om&are to 2008 and 2009 so its )ar* %ad for 0om&an*9

,:

3$ 2everage Ratios
2everage ratios )easure the &egree of prote#tion of suppliers of long ter) fun&s0 1hese in#lu&e! H 1i)es Interest Earne& H +e3t Ratio H +e3t ? EAuity Ratio H +e3t to 1angi3le Net ,orth Ratio H 1otal %apitali4ation Ratio

Na)e of the ratio H 1i)es Interest Earne&


5o find out 5imes !nterest 4arned /e use the follo/ing formula that is gi)en %elo/

Bith the help of for)ula ,e #al#ulate or fin& 1i)es Interest Earne& For)ula! 1i)es Interest Earne&! E/I1 ? Interest E=penses
E/I1 I Profit 3efore ta=ation K ;arkup Interest E=penses ? Interest E=penses

Sho, in ta3le
9ears E/I1 Interest e=penses 1otal interest earne& E/I1?Interest 200@ 4=>88:>'== 2,>884>'=8 10 6 1i)es 200 =1>'89>822 40>489>=49 10<2 1i)es 2010 =9>==:>:9: 4:>2:0>4'= 10<( 1i)es

,=

e=penses

Borking!
Profit 3efore 1a=ation! Mar u& in0ome EMar u& e;&en0essN Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for the )alue of !n)estment L Pro)ision against off %alan0e sheet o%ligations L Bad de%ts /ritten off8 N Net )ark.up interest in#o)e Net mar $u& interest in0omeL <ee 0ommission O %ro erage in0omeL #i)idend in0ome L4;0hange in0omeL L gain on sale of se0uritiesL 1ther in0ome N 1otal non )ark up interest in#o)e 5otal non mar u& interest in0ome$ Administrati)e e;&ense$1ther &ro)isions$ 1ther 0harges N Profit 3efore ta= Interest e=penses! !nterest e;&enses gi)en in &rofit and loss a00ount on 2 n d head as mar u& return interest e;&ense9

Craphi#al Presentation of 1i)es Interest Earne&

2010 2009 2008 0 0.5 1

1.53 Ti#es $nterest %arned 1.52 1.96 1.5 2 2.5

Interpretation!
As /e see in ta%le the 5ime interest ratio is de0reasing o)er the time9 !n 2008 the time interest ratio is 199= %ut in 2008 its de0rease it /ith 19:2 5ime

,'

interest 0an also sho/ the de0reasing trend in 0oming *ear and than in0reasing trend in ne;t *ear li e !n 2009 it little in0rease 19:, as 0om&are to 20099

Na)e of the ratio

H +e3t Ratio For)ula! +e3t Ratio I 1otal lia3ilities ? 1otal 6ssets


Its si)ple #al#ulate total lia3ilities of all year than #al#ulate total assets of all year an& than total lia3ilities &ivi&e 3y total assets than ,e fin& &e3t ratio

Sho, in ta3le
9ear 5otal lia%ilities 5otal Assets +e3t Ratio 200@ '1:>299>108 81'>':8>,2= 00@>< 1i)es 200 82:>='=>,84 944>:82>'=2 00@>5 1i)es 2010 90=>:28>8:2 10,:>024>=80 00@>6 1i)es

Borking
1otal +e3ts I Bills &a*a%le L Borro/ing L #e&osit and other a00ounts L "u%$ ordinated loans L-ia%ilities against assets su%Ae0t to finan0e lease L #eferd ta; lia%ilit* L 1ther lia%ilit* 1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L -ending to <inan0ial !nstitution L !n)estment L Ad)an0es L 1&erating fi;ed asset L #efferd ta; asset L other assets

Craphi#al Presentation of +e3t Ratio

,8

3rd &tr 2nd &tr 1st &tr 0.873 0.8735 0.874 0.8745 0.874 0.875 0.875 0.8755

0.876 'e(t Ratio

0.876

0.8765

Interpretation!
As /e see in ta%le the de%t ratio is not mu0h in0rease or de0rease it all same in all three *ears9 .ere 0om&an* ha)e more assets then de%t %e0ause de%t ratio of greater than 1 indi0ates that a 0om&an* has more de%t than assetsP /hile> a de%t ratio of less than 1 indi0ates that a 0om&an* has more assets than de%t9

Na)e of the ratio

H +e3t ? EAuity Ratio


For)ula! +e3t to EAuity Ratio I 1otal lia3ilities "+e3t$ ? Sharehol&er eAuity

Sho, in ta3le
9ear 5otal -ia%ilities "hareholder 4quit* +e3t to EAuity Ratio 200@ '1:>299>108 81>49'>4:8 @0>@ ti)es 200 2:>='=>,84 94>2=:>8:, @0>6 ti)es 2010 90=>:28>8:2 10,>880>048 @0>( ti)es

Borking!
1otal &e3ts I Bill &a*a%le L Borro/ings L de&osits and other A00ount L "u%$ordinate -oans -ia%ilities against Assets su%Ae0ts to finan0e leaseL #eferred ta; -ia%ilities L 1ther lia%ilities ,9

Share hol&er eAuity N "hare Ca&ital L 3eser)es L una&&ro&riate &rofit L "ur&lus on re)aluation of fi;ed assets9

Craphi#al Presentation of +e3t ? EAuity Ratio

2010

8.73 'e(t to %)uit* Ratio

2009

8.76

2008 8.7 8.72 8.74 8.76

8.78 8.78 8.8

Interpretation!
As /e see in ta%le the ratio of 2008 sho/s =998 /hi0h is de0reased in 2009 %* =994 %ut in 2010 its again in0rease %* '90:9 !ts sho/ that the 0om&an* is finan0es its assets and hea)il* relies on de%t finan0es9

Na)e of ratio! H +e3t to 1angi3le Net ,orth Ratio!


For)ula! 1otal lia3ility?"Net ,orth. Net intangi3le asset$
40

Sho, in ta3le
9ear 5otal -ia%ilities 5angi%le net /orth +e3t to 1angi3le Borth Ratio 200@ '1:>299>108 102>4:,>29, 60 @ 1i)es 200 82:>='=>,84 118>888>848 60 5 1i)es 2010 90=>:28>8:2 128>48'>:98 >00< 1i)es

Borking!
1otal +e3ts I Bill &a*a%le L Borro/ings L #e&osits and other A00ount L "u%$ordinate -oans -ia%ilities against Assets su%Ae0ts to finan0e lease L #eferred ta; -ia%ilities L 1ther lia%ilities Net Iorth N 5otal Asset $ 5otal lia%ilit* !ntangi%le asset N 7Mention in notes of %alan0e sheet 119,8 !ntangi%le asset of 2008 is :>92:> !ntangi%le asset of 2009 N 1'>:,0 and !ntangi%le asset of 2010 N 8>2,0

Craphi#al Presentation of +e3t to 1angi3le Net ,orth Ratio!

2010 2009 2008 6.85 6.9 6.95 6.94 6.98 7

7.05 'e(t to Tan i("e Wort+ Ratio

7.05

7.1

Interpretation!
5he o)erall sho/ the in0reasing trend of the 0om&an* in 2008 it sho/s the =998 and there 2009 it de0rease %* =994 and again in 2010 it in0rease u& to '90:9 "o in *ear 2010 it?s greater as 0om&are to 2008 and 2009 and it?s less in 2009 as 0om&are to 2008 and 20109

41

Na)e of ratio 1otal %apitali4ation Ratio!


For)ula! 2ong ter) &e3t ? 2ong ter) &e3t K Share hol&er eAuity

Sho, in ta3le
9ear -ong term de%t "hare holder equit* L long term de%t %apitali4ation Ratio 200@ ,2>,9,>=4' 11,>'=0>=49 002@ 1i)es 200 100>,82>==4 194>:24>:8, 00<1 1i)es 2010 ,8>902>48= 142>==4>'9= 002> 1i)es

Borking!
2ong ter) +e3ts I -ong term %orro/ing L long term de&osits and other a00ounts L "u%$ordinated loans L -ia%ilities against assets su%Ae0t to finan0e lease L#eferd ta; lia%ilit* L 1ther lia%ilities7long term8 Share hol&er eAuityK long ter) &e3ts N "hare 0a&ital L 3ese)ers L Luna&&ro&riated &rofit L sur&lus on re)aluation of asset L -ong term %orro/ing L long term de&osits and other a00ounts L "u%$ordinated loans L -ia%ilities against assets su%Ae0t to finan0e lease L #efferd ta; lia%ilit* L other lia%ilities7long term8

Craphi#al Presentation of 1otal %apitali4ation Ratio

42

2010 2009 2008 0 0.2

0.27 0.51 0.28 0.4 0.6 Tota" Ca!ita"i,ation Ratio

Interpretation !
5otal Ca&italization 3atio is high in 2009 as 0om&are to 2008 and 2010 the o)erall trend of de%t 0ontri%ution to/ards finan0ing sho/s the in0reasing trend of the 0om&an*9 !n 2008 it sho/s the 29: and there is further in0rease 2009 O 2010 so the o)erall trend of de%t 0ontri%ution to/ards finan0ing is high9

#$ Profita3ility Ratios Profita3ility ratios )easure the earning a3ility of a fir)0 1hese in#lu&e! H Net Profit ;argin H Return on 6ssets H +uPont Return on 6ssets H 8perating In#o)e ;argin H Return on 8perating 6ssets
4,

H Return on 1otal EAuity H Cross Profit ;argin Na)e of ratio H Net Profit ;argin

For)ula! Net Profit ;argin N Net Profit ?Net SalesL100 Sho, in ta3le
9ear Net Profit Ma* Net Sales M3* Net Profit ;argin ratio! a?3 200@ 1<75<@7< 0 =0>942>'98 2<05N 200 1>7<617@56 ''>94'>=9' 220<N 2010 1>7<6(7215 @@75>271(5 1 0 N

Borking!
Net &rofit is the &rofit after ta; /hi0h is o%tained as: Mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of se0urities N 5otal in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L "hare of in0ome N Profit %efore ta;

44

Profit %efore ta;$ ta; N Profit after ta; And net sale N Mar u& re)enue

Craphi#al Presentation of Net Profit ;argin

2010 2009 2008 0 5 10 15

19.9 -et .ro/it 0ar in 22.5 25.4 20 25 30

Interpretation!
5he ta%le sho/s that Net Profit margin is sho/ing de0reasing trend in 2009> /hi0h again de0reases in 2010 as 0om&are to 2008 so NBP has not signifi0ant im&ro)ed net &rofit margin in the this *ears in 0oming *ears after 20089

Na)e of ratio

H Return on 6ssets
For)ula! Return on asset! "E/I1 ? 1otal 6ssets$L100

Sho, in ta3le
9ear E/I1 a* 200@ 46,885,766 200 61,789,822 2010 69,665,595

4:

1otal 6ssets M3* Return on 6sset Ratio Ma?3*

81'>':8>,2= 5.73%

944>:82>'=2 6.54%

170(<702576@0 6.73%

Borking!
3e)enue E Mar u& 4;&enses N Cross Profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $ u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on sale of se0urities N 5otal in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L "hare of in0ome N Profit %efore ta; E/I1 I Profit 3efore 1a=ation K Interest e=penses

1otal 6ssets! Cash and %alan0es /ith treasur* %an


Asset L #efferd ta; asset$net9

s L Balan0es /ith other %an s L

lending to finan0ial institution L !n)estmentL Ad)an0es L 1ther asset L 1&erating fi;ed

Craphi#al Presentation of Return on 6ssets

2010 2009 2008 5.2 5.4 5.6 5.73 5.8 6 6.2 6.4 6.6 6.54

6.73 Return on Assets

6.8

4=

Interpretation!
5he ta%le sho/s that the return on assets of 2008 is greater as 0om&are to 2009 and 2010 so the ratio anal*sis e;&lains that 3eturn on Assets is gro/ing in the *ear 2008> /hi0h is 2981F9 But after this it in0reases from &re)ious le)el and then it rea0hed at 292=F in finan0ial *ear 2009> again it de0rease to 29,=F in *ear 20109

Na)e of ratio H +uPont Return on 6ssets


For)ula! +uPont Return on 6ssets I Net In#o)e?Net sales L Net Sales? total 6sset

Sho, in ta3le
9ear Net Net Sales M=* Net Sales? 1otal 6sset My* +uPont Return 8n 6ssets M=Ly 10 1N 10@>N 106 N =0>942>'98M81'>':8>,2=N ''>94'>=9'M944>:82>'=2 88>4'2>1,4M1>0,:>024>=80 090': N0908, N0908: 200@ 1:>4:8>:90M=0>942>'98 200 1'>:=1>84=M''>94'>=9' N0922: 2010 1'>:=,>214M88>4'2>1,4 N09199

In#o)e? N092:4

4'

Borking!
Net In#o)e?Net Sale!
Net In#o)e! Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit$ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on sale of se0urities N 5otal !n0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit %efore ta; Profit %efore ta; $ 5a; N Profit after ta; or net in0ome And net sale N Mar u& 3e)enue

Net Sale?1otal 6sset!


1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L lending to finan0ial institution L !n)estmentL Ad)an0es L 1ther asset L 1&erating fi;ed asset L #efferd ta; asset$net

Craphi#al Presentation of +uPont Return on 6ssets

2010 2009 2008 1.55 1.6 1.65

1.69 'u.ont Return 1n Assets 1.87 1.91 1.7 1.75 1.8 1.85 1.9 1.95

48

Interpretation!
As /e see in gra&h and ta%le the #uPont 3eturn on Assets ratio de0reases in 2008 and 2010 as 0om&are to 2009 it means in *ear 2009 the #uPont 3eturn on Assets ratio is high as 0om&are to 2008 and 2010 it ha&&ens due to in0rease in mar $u& re)enue9

Na)e of ratio H 8perating In#o)e ;argin For)ula! 8perating in#o)e )argin I "E/I1? Net Sales$L100 Sho, in ta3le
9ears 200@ 567@@<7>66 =0>942>'98 >60 (N 200 617>@ 7@22 ''>94'>=9' > 02>N 2010 6 766<7< < @@75>271(5 >@0>5N

E/I1 Ma* Net Sales M3* 8perating in#o)e )argin Ma?3*

Borking!
3e)enue E Mar u& 4;&enses N Cross profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net )ark.up in#o)e Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of "e0urities N 1otal in#o)e 5otal !n0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0omeN Profit 3efore ta= E/I1 I Profit 3efore 1a=ation K Interest e=penses

49

Net SaleN Mar u& re)enue

Craphi#al Presentation of 8perating In#o)e ;argin

2010 2009 2008 75.5 76 76.5 76.93 77 77.5 78 78.5

78.74 1!eratin inco#e #ar in 79.27

79

79.5

Interpretation!
As /e see in gra&h and ta%le the 1&erating in0ome margin is de0reasing o)er the *ear 2008 and 2010 as 0om&are to 2009 it ha&&ens due to in0reasing of sale more qui0 l* than to o&erating &rofit9

Na)e of ratio H Return on 8perating 6ssets


<ormula: Return on 8perating 6ssets I "E/I1? 8perating 6ssets$L100

Sho, in ta3le
9ears E/I1 Ma* 8perating 6ssets M3* Return on 200@ 567@@<7>66 :=0>8,=>,08 @0(6N 200 617>@ 7@22 =,:>80:>==' 0>2N 2010 6 766<7< < 6527@627(06 100@5N

:0

8perating 6ssets M"a?3$L100*

Borking!
3e)enue E Mar u& 4;&enses N Cross profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net )ark.up in#o)e Net mar $u& in0ome L <ee O 0ommissionL #i)idend in0ome L 4;0hange in0ome L 1ther in0ome L gain on sale of se0urities N 1otal in#o)e 5otal in0ome$ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit 3efore ta= E/I1 I Profit 3efore 1a=ation K Interest e=penses 8perating 6ssets I Cash and %alan0es /ith treasur* %an s L -ending to finan0ial institutions L Ad)an0es E net L 1&erating fi;ed assets

Craphi#al Presentation of Return on 8perating 6ssets

:1

2010 2009 2008 0 2 4 6 8 8.36 10 9.72

10.84 Return on 1!eratin Assets

12

Interpretation!
As /e see in ta%le and gra&h the 3eturn on o&erating asset is in0reasing e)er* *ear so 3eturn on o&erating asset ratio is mo)ing to/ards lo/ /hi0h indi0ates that the Com&an* must gi)e attention to/ards its usage of o&erational asset9

Na)e of ratio H Return on 1otal EAuity For)ula! Return on EAuity I "Net in#o)e?Sharehol&er*s eAuity$L100 Sho, in ta3le
9ear

Net income a Shareholders eq it! " $et rn on %q it! a&"

200@ 1<75<@7< 0 81,497,458 18.97%

200 1>7<617@56 94,265,853 18.63%

2010 1>7<6(7215 1#3,88#,#48 16.91%

:2

Borking!
Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as Mar u& 3e)enue $ Mar u& 4;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $ u& in0ome Net mar $ u& !n0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of "e0urities N 5otal !n0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit %efore ta; Profit 3efore ta=. ta=I Profit after ta= or Net in#o)e Sharehol&er*s eAuity I"hare 0a&italL reser)esL una&&ro&riated &rofit L sur&lus on re)aluation of fi;ed assets9

Sour#e!
Change in equit* statement under the head 2092

Craphi#al Presentation of Return on EAuity

2010 2009 2008 15 16

16.91 Return on %)uit* 18.63 18.97 17 18 19 20

Interpretation!
:,

3eturn on 4quit* "3148 tells us ho/ mu0h &rofit a 0om&an* earned in 0om&arison to the total amount of shareholders? equit*9 !n 2008 it /as 1@0 %* 1@06<N and again de0reases in 2010 %* 160 (N9 P it slightl* de0reases in 2009

Na)e of ratio H Cross Profit ;argin


For)ula! CR8SS PR8FI1 ;6RCIN I "Cross Profit ? Net Sales$L100

Sho, in ta3le
9ear

Cross Profit Ma* Net Sales M3* Cross Profit ;argin Ratio M"a?3$L100

200@ (>70<@7 0(0 =0>942>'98 600@1N

200 (>75<@705@ ''>94'>=9' 5@006N

2010 5(722176<@ @@75>271(5 5@0@<N

Borking!
Cross &rofit N Mar u& re)enue $ Mar u& e;&enses Net "ale N Mar u& 3e)enue

Craphi#al Presentation of Cross Profit ;argin Ratio

:4

2010 2009 2008 0 10 20 30 40

48.85 2ross .ro/it 0ar in Ratio 48.06 60.81 50 60 70

Interpretation!
!n 2008 the &rofit margin ratio is =09,81 a%ut in 2009 and 2010 it sho/s de0reasing trend9 !t is due to in0reasing of mar u& e;&enses more qui0 l* than mar u& re)enue9

&$ 6#tivity Ratios 6#tivity ratios )easure a fir)Ds a3ility to #onvert &ifferent a##ounts ,ithin their 3alan#e sheets into #ash or sales0 1hese in#lu&e! H 1otal 6ssets 1urnover H Fi=e& 6ssets 1urnover
N6;E 8F R61I8 H 1otal 6ssets 1urnover
F8R;U26! 18162 6SSE1 1URN8VER R61I8 I Net sales ? 1otal 6ssets

::

Sho, in ta3le
9E6R Net sales Ma* 1otal 6ssets M3* 1otal 6ssets 1urnover Ma? 3* 200@ =0>942>'98 81'>':8>,2= 000>5< 1i)es 200 ''>94'>=9' 944>:82>'=2 000@2< 1i)es 2010 88>4'2>1,4 1>0,:>024>=80 000@<< 1i)es

Borking!
Net sale N Mar u& 3e)enue M !nterest 4arn M 3eturn 1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L lending to finan0ial institution L !n)estment L Ad)an0es L 1ther asset L o&erating fi;ed asset L #efferd ta; asset$net

Craphi#al Presentation of 1otal 6ssets 1urnover

2010 2009 2008 0.068 0.07 0.0745 0.072 0.074 0.076 0.078 0.08 0.0825

0.0855 Tota" Assets Turno3er

0.082 0.084 0.086 0.088

Interpretation!
5otal Assets 5urno)er ratio of all three *ears sho/s the in0reasing trend in 2008> 2009 and 20109 5he trend sho/s that %an is using its assets /ell %e0ause it is 0ontri%uting

:=

more to/ards sales9 As /e see in *ear 2010 the 5otal Assets 5urno)er is little %it in0rease as 0om&are to other t/o *ears9

Na)e of ratio H Fi=e& 6ssets 1urnover


For)ula! Fi=e& 6ssets turnover I Net Sales ? Fi=e& 6ssets

Sho, in ta3le
9ear

Net sales a 'i(ed assets " 'i(ed )ssets t rno*er a& "

200@ 607 527> @ 24,217,655

200 >>7 5>76 > 25,147,192

2010 @@75>271(5 (517<607>00

2.52 +imes

3.1# 1i)es

3.29 1i)es

Borking!
Fi=e& 6sset I 1&erating <i;ed Assets Net Sale N Mar u& re)enue M 3eturn M !nterest 4arn

Craphi#al Presentation of Fi=e& 6ssets turnover

:'

2010 2009 2008 0 0.5 1 1.5 2 2.52 2.5 3 3.1

3.29 4i5ed Assets turno3er

3.5

Interpretation!
5his <i;ed Assets turno)er ratio sho/s in0reasing trend in e)er* *ear li e in 2008 <i;ed Assets turno)er is 29:2 times and its in0reases in 2009 u& to ,910 times and it also and more in0rease as 0om&are to 2008 and 2009 u& to ,929 times9 <i;ed assets usage is satisfa0tor* %e0ause these are 0ontri%uting more to/ards sales9

e$ ;arket Ratios ;arket ratios are #o))only use& 3y the investors to assess the perfor)an#e of a 3usiness as an invest)ent an& also the #ost of issuing sto#k0 1hese in#lu&e! H +ivi&en& per share H Earning per Share
:8

H Pri#e?Earning Ratio Na)e of ratio H +ivi&en& per share


For)ula! +ivi&en& per share I +ivi&en& pai& to share hol&er ? 6verage #o))on share outstan&ing

Sho, in ta3le
9ear +ivi&en& pai& to sharehol&er 6vg0 #o))on share outstan&ing +ivi&en& per share 200@ =>104>894 89=9': 60@1 Rs0 200 :>820>,,8 10'=,'0 <051 Rs0 2010 8>0=0>:10 1,4:4=, <0 1 Rs0

Borking
6vg0 #o))on share outstan&ingI Share #apital a)ount ? Par value of share 9ear 6vg0 #o))on share outstan&ing 200@ I@7 6 7><1?10 I@ 6 ><01 89=9': 200 I107>6(7>02?10 I10>6(>002 10'=,'0 2010 I1(75<5762@?10 I1(5<5620@ 1,4:4=,

Craphi#al Presentation of +ivi&en& per share

:9

2010 2009 2008 0 2 4 6

5.991 'i3idend !er s+are 5.41 6.81 8

Interpretation!
5he gi)en gra&h and ta%le sho/s that in *ear 2008 the +ivi&en& per share is =981 %ut it de0rease in 2009 and again in0rease in 20109 #i)idend &er share ratio informs a%out the &ri0e of shares in the mar et also tells the )alue of the %an ?s shares &ri0e9 5his ratio for the %an is rising 2010 as 0om&ared to the 2008> 20099

Na)e of ratio H Earning per Share


For)ula! Earning per Share I Profit 6vaila3le to sharehol&ers or Net in#o)e
after ta=? No of shares outstan&ing

Sho, in ta3le
9ear Net in#o)e after 200@ 1:4:8:90 200 1':=184= 2010 1':=,214

=0

ta= No of shares outstan&ing

89=9':

10'=,'0

1,4:4=,

Earning per Share

1>02( Rs0

160(2 Rs0

1(00< Rs0

Borking
Net In#o)e!
Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& !n0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L 1ther in0omeL gain on sale of se0urities N total in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0omeN&rofit %efore ta; Profit %efore ta;$ ta; N Profit after ta= or net in#o)e No0 of share 8utstan&ing I Share #apital a)ount ? Par value of share

Craphi#al Presentation of Earning per Share

=1

2010 2009 2008 0 2 4 6 8 10 12

13.05 %arnin !er 6+are 16.32 17.23 14 16 18 20

Interpretation
4arnings &er share ser)e as an indi0ator of a 0om&an*Hs &rofita%ilit*9 5he reason of in0rease earning &er share is to in0rease the net in0ome of the 0om&an* and the reason of fallen earning &er share is that net in0ome is de0reasing and the outstanding share of the 0om&an*9 After 2008 its de0reases in 2009 and 2010

Na)e of ratio H Pri#e?Earning Ratio


For)ula! Pri#e Earning Ratio I %urrent )arket Share pri#e ? Earning per Share

Sho, in ta3le
9ear ;arket value per share Earning per Shares Pri#e Earning Ratio =2 200@ :09,2 1'92,F 20 20< Rs0 200 '49,' 1=9,2F 50<<>0 Rs0 2010 '=982 1,90:F <0@@66 Rs0

Borking
Sour#e!
%urrent )arket Share pri#e fro) htt&:MM///9 se90om9& M EPS is availa3le in 3alan#e sheet0

Craphi#al Presentation of Earning per Share

2010 2009 2008 0 1 2 2.9205 3 4 5 4.557

5.8866 .rice %arnin Ratio

Interpretation
5he Pri0e 4arning ratio is greater in 2010 as 0om&are to 2009 and 20089 Pri0e 4arning ratio doesnHt tell us the /hole stor* %* itself9 !t is usuall* useful to 0om&are the Pri0e 4arning ratios of one 0om&an* to other 0om&anies in the same industr*

=,

1(0 Future Prospe#ts of the 8rgani4ation


Am doing internshi& in national %an of Pa istan and o%ser)ed during internshi& and see detail in NBP /e%sites and internet that the future of National Ban of Pa istan is )ar* %right and the e;&ansion of NBP is in0reasing da* %* da* and during the 0al0ulation of ratio ! o%ser)ed that the earning of NBP is high as 0om&are to %ase or &re)ious *ears9 5he most three ratios to 0he0 the future &ros&e0ts of the entit* and all three ratios sho/s in0rease e)er* *ear these there ratios are 0urrent asset ratio> Ior ing 0a&ital> Cross Profit 3atio9 But NBP is gearing 0hallenges fa0ed %* the domesti0 %an ing industr* due to inno)ation and ad)an0ement in international %an ing9 5he future of NBP is %right and NBP is maintaining its &osition to set higher standard of a0hie)ement %e0ause /hen ! 0al0ulate the ratios all re&resent in0reasing moment and all are &ositi)e it means the %an has 0a&a%ilit* to &a* off and its de%t is also su&er%95he a0tions ta en %* 0urrent management &ro)ide a great o&&ortunit* for NBP for ma ing it future &ros&er and 0an ma e NBP not less than an* modern 0ommer0ialize %an in Pa istan9

=4

150 %on#lusion
! am doing m* internshi& &rogram in the largest Co)ernment %an of Pa istan its National Ban of Pa istan9 NBP is one of the leading %an s in %an ing se0tor9 #uring m* sta* of = /ee s at NBP it?s m* 1st &ra0ti0al life e;&erien0e> ! learnt a lot of tas > man* &rofessional s ills9 ! also learned a%out ho/ to deal /ith &u%li09 NBP has 12:4 nation/ide and almost 2: %ran0hes o&erating in other foreign 0ountries in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Bangladesh> and .ong @ong9 National %an of Pa istan is one of the %iggest online %an s in Pa istan9 NBP is a go)ernment %an that /h* it /or s a00ording to rules set %* the state %an of Pa istan9 NBP is also in)ol)ed in 0ommer0ial %an ing9 !t is a &art of "tate Ban of Pa istan and it is its maAor strength9 National Ban of Pa istan esta%lish in the National Ban of Pa istan ordinan0e 19499 Am doing m* internshi& in NBP if ! sa* the future of NBP is %right it /ill not %e /rong9 ! o%ser)ed during m* training in NBP the &a&er /or of NBP is a/esome %ut no/ a da* of te0hnolog* the te0hnolog* is an im&a0t to sur)i)e in the mar et and to %e in 0om&etition9 4)er* organization has some /ea ness and during m* internshi& in NBP <$ 10 %ran0h !slama%ad ! also o%ser)ed it 0o)ers all its /ea ness and ta e o&&ortunities at

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right time surel* it 0an %e in the /a* of &rogress insh Allah and /ill 0ontri%ute in o)erall &rogress of NBP at national le)el as /ell as the international le)el9 Ihen ! 0al0ulate the 3atio anal*sis of National Ban of Pa istan it sho/s that NBP is a most rising %an /ith highest return on 0a&ital> largest mar et share amongst all Ban s in Pa istan9 NBP 0arries highest 0ost to !n0ome ratio as 0om&are to all other 0ommer0ial %an s9 But still thin s that there is need for de)elo&ment to o)er0ome on /ea nesses in order to ee& its &osition as an e;0ellent in %an ing field9 @ee&ing in )ie/ the finan0ial ratios it is o%ser)ed that Net assets of the NBP are in0reasing da* %* da*9 5he net &rofit is also in0reasing /hi0h ma* attra0t the in)estors9 5he &rofit of national %an of Pa istan is also in0reasing da* %* da* that attra0t the 0ustomers and in)estors9 5his ratio of NBP is in0reasing /hi0h sho/s large num%ers of the assets are finan0ed %* the de%ts /hi0h is not good9 Positi)e /or ing 0a&ital ratio sho/s that its assets are more than lia%ilities> so the %an is 0a&a%le to &a* its lia%ilities9 3atio sho/s that NBP is utilizing its Assets effi0ientl*9 NBP should full* 0on0entrate to im&ro)e its &erforman0e and standards to meet the 0hallenges %* the e0onom* as /ell as %* the 0om&etitors and for this &ur&ose it needs to o)er0ome the &ro%lems and im&ro)e the qualit* of ser)i0es s&e0iall* in ad)an0e se0tion> that /ill &re)ent it from huge losses9

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1<0 Re#o))en&ations for I)prove)ent I)prove its EPS 3e#ause its sho,s #o)pany profita3ility0 In#rease sale an& re&u#e e=penses to earn 3etter profit )argin I)prove liAui&ity position 3y in#reasing its sale In#rease the #urrent assets as #o)pare& to

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#urrent lia3ilities Proper training of staff )e)3ers Prevailing frien&ly environ)ent %o)plaint #ounter shoul& 3e availa3le Borking #apital shoul& 3e positive 0

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160 Referen#e - Sour#es use&

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