Internship Report On NBP

National bank of Pakistan
INTERNSHIP REPORT
ON
National Bank of Pakistan
Internship Report submitted to the Department of Faculty of Management Science
BY
UNIVERSITY` OF Gujrat
Date of Submission 16-09-2013
Name of Program Coordinator
_________________
Signature of Program Coordinator
_________________
University Of Gujrat Page 1

Acknowledgement
First of all, I am thankful to the most Merciful Allah who gave me the capability to fulfill
all the tasks efficiently.
I would like to thank Faiz Fareed (Credit Officer), for giving me opportunity to join NBP
and guiding me throughout my internship period. And thanks to my friends for helping
me throughout this period. And special thanks to all the staff members of all
departments without their help and guidance this report cannot be completed. All of
them were very supporting and encouraging.
I am thankful to all the staff of NBP for their support and guidance. Last but not least I
would like to thank my mother for her affection.

Table of Contents
Page No.
Title Page
01
Acknowledgement
02
1. Executive Summary
10
Main Body of Report
12
2. Introduction of NBP
13
2.1 Scope of Study
13
2.2 Aim of the Study
13
2.3 Objectives of the Study
14
3. Overview of the Organization

3.1 Brief History of the Organization
14
3.2 Nature of the Organization
16
3.3 Business Volume
18
3.4 Reward Honors & Success stories during last 5 years
18
3.5 Products of NBP
19
3.5.1 NBP Premium Amdani
19
3.5.2 NBP Karobar (Mera Apna Karobar)
20
3.5.3
NBP Saiban
3.5.4
3.5.5
NBP Advance Salary

NBP Cash n Gold
20
21
21
3.5.6 NBP Kisan Dost
22
3.5.7 NBP Cash Card
22

3.5.8 NBP Investor Advantages
23
3.5.9 NBP Pak Remit
23
3.6 Services of NBP
3.7
24
3.6.1 International Banking
24
3.6.2 Demand Drafts
25
3.6.3 Mail Transfers
25
3.6.4 Pay Order
25
3.6.5 Travelers Cheques
25
3.6.5.1 Validity
25
3.6.5.2 Availability
25
3.6.5.3 Encashment
25
3.6.5.4 Limitation
26
3.6.5.5 Safety
26
PEST Analysis
26
3.7.1 Political
26
3.7.2 Economical
26
3.7.3 Social & Cultural
27
3.7.4 Technological
27
3.8 Contribution of Organization & Economic Development
27
4. Organizational Structure
28
4.1 Organizational Hierarchy Chart of NBP
28
Designation of Higher Level Office

4.2 Number of Employees
29
4.3 Main Offices
30
4.3.1 Head Office of National Bank of Pakistan
30
4.3.2 Domestic Branches
31
4.3.3 Overseas Branches
31
4.4 Introduction of Departments of NBP
32
4.4.1 Cash Department

4.4.2
32
Account Opening Department
32
4.4.3 Clearing Department
33
4.4.4 Advances Department
33
4.4.5 Remittances Department
34
4.4.6 Pension Disbursement Department
34
4.4.7 Computer Department
34
4.4.7.1 Online Branches
35
4.4.7.2 Evening Data Receiving Center
35
4.4.7.3
35
Data Entry Department
4.4.8 Deposit Department
35
4.4.9 Accounts Department
36
4.5 Comments on the Organizational Structure
37
Part-II
38

5. Internee Work
39
5.1 Brief Introduction of the Branch
39
5.2 Details of Supervisors
40
5.3 Weekly Time Table
40
5.4 Detailed Description of the Departments in which You Worked 42

5.4.1 Account Opening Department
42
43
5.4.3 Kinds of Remittances
44
44
5.4.5 Types of Clearing
44
5.5 Description of the Operations Performed in Department

5.5.1 Requirements for A/c Opening & Closing of A/c
5.5.1.1 Terms and Conditions
45
45
45
5.5.1.1.1 Introducer
45
5.5.1.1.2 Customer
45
5.5.1.2 Procedure of Account Opening
45
5.5.1.3 Account Opening Form
46
5.5.1.4 Specimen Signature Card
46
5.5.1.5 Next of Kin
46
5.5.1.6 Letter of Thanks
46
5.5.1.7 Issuance of Cheju Book
46
5.5.2 Closing of Account
47
5.5.2.1 Account holder Owen request
47
5.5.2.2 Functions of Clearing Department
47

5.5.2.3 Documentation
48
5.5.3 Western Union Department
49
5.6 Detail Description of the Tasks Assigned
49
5.7 Internship Learning Summary
52
5.7.1
What skills and qualifications you think that you have gained from the internship
53
5.7.2 What kind of responsibilities you have undertaken during the internship
period?
53
5.7.3 How do you think the internship activities that you carried out are
correlated with your classroom knowledge?
54
5.7.4.1
Correlation between the Internship
5.7.4.2
Activities and Class Room Knowledge
54
55
55
6. Conclusions of the report
55
6.1 A summary of key conclusions derived

from the internship experience
55
6.2 General Observations about NBP
56
6.3 SWOT Analysis
56
6.3.1 Strengths
57
6.3.1.1 National Institutions
57
6.3.1.2 Organization Culture
57
6.3.1.3 Strategic TOP Management
57
6.3.1.4 Industrial Policies
57

6.3.1.5 Lenient Policy with the Clients
6.3.2 Weaknesses
58
58
6.3.2.1 Less Attention to the Rural Development

6.3.2.2 Poor Advertisement
58
6.3.2.3 Poor Network
58
6.3.2.4 Political Interference
59
6.3.3 Opportunities
58
59
6.3.3.1 Sponsor the IT Based Projects
59
6.3.3.2Goodwill and Better Image
59
6.3.3.3 Growth in the Industrial Sector
59
6.3.4 Threats
60
6.3.4.1 Political Influence and Instability
60
6.3.4.2 Sick Projects
60
6.3.4.3 Lack of Modern Banking Techniques 60

7. Recommendation and Suggestions
61
7.1 Professional Training
61
7.2 Delegation of Authority
61
7.3 Performance Appraisal
61
7.4 To Over Come Problem of Space and Furniture
62
7.5 Need Qualified Staff
62
7.6 Link with the Head Quarter
62

7.7 Clean Loans
62
7.8 Decreasing Administrative Expenses
63
7.9 Technological Advancement
63
7.10 Improper Distribution of Work
63
7.11 Marketing Policy
64
7.12 Avoid Political interference
64
7.13 Recommendations with their Feasibility
64
8. References
66
1. Executive Summary
Six weeks internship, in a well reputed organization, is part of my academic requirement

for MBA discipline. The internship is to serve the purpose of experience the student with
the practical knowledge of the field. And see how the practical work is done.
I choose NBP for completing my internship program. The purpose of this report is to
explain my learning during my internship.
In start of the report I gave introduction to report, history and organization. I also
included companys mission, objective, values and field of activities in report to get early
understanding.

This particular internship report contains two parts or sections. The introduction of
performance history and the Institute expresses, pest analysis, SWOT analysis and
many other things are included in the report. There are a few tips and
recommendations. Banking sector and its role towards economic development is now a
region of a major importance. National Bank of Pakistan is one of the major banks.
National Bank of Pakistan was established through November 9, 1949 Ordinance.
Initially the purpose of bank was lending in order to promote agriculture. In Karachi and
Lahore offices opened on December 1949. Now NBP has branches across the country.
Banks are performing many functions to facilitate their customer such as taking up of
money, lending or advancing of money
upon security, discounting, buying, selling,
collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts,
bills of lading, railway receipts, debentures, certificates, Issuing of traveler's cheques
and circular notes, underwriting and dealing in stock, shares, debentures, bonds,
obligations, securities and investment of all kinds or other forms of securities on behalf
of their customers.
Apart from having a vast branch network, Bank is at the forefront in the acquisition and
application of new technologies in every aspect of its banking facilities. It has acquired
leased telephone lines for on-line banking. The Bank has 130 online branches.
Since its creation National Bank of Pakistan is trying to provide every possible facility to
nations socio-economic development. NBP also undertake government treasury
operations; act as a contributory agent of government and semi government. NBP
provides a wide range of services, such as collection of taxes and deliveries of salaries,
pensions to public sector employees, credit creation, lending to the business sector and
public to develop and expand their business and in this way bank is playing a vital role
in economic development.NBP also offers lowest rates exports and other borrowings.
NBP is the only bank of the country, which has been awarded The Best Domestic
Bank repeatedly in 2001 and 2002 by the renowned journal The Banker UK. The
National Bank of Pakistan is also the first bank which has started a Foreign Exchange
University Of Gujrat
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Company in order to facilitate the general masses, regularize the inflows of foreign
money and control the undesirable blackmailing of private foreign exchange companies
in the country. In short, NBP occupies a distinctive position in development of the
financial sector of Pakistan.
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Main
Body
of
Report
Part I
12
Page

2. Introduction of NBP
National Bank of Pakistan was established in Pakistan under the National Bank of
Pakistan Ordinance, 1949. It is listed on Karachi, Lahore and Islamabad stock
exchanges. Its head office is at I.I. Chundrigar Road, Karachi. The bank is involved in
providing commercial banking and related services in Pakistan and overseas. The bank
is acting as an agent of State Bank of Pakistan (SBP). It also handles treasury
transactions for the Government of Pakistan (GOP). NBP has 1,266 branches in
Pakistan and 23 overseas branches.
2.1 Scope of Study:
I have completed my (6 Week) internship in National Bank of Pakistan. During my

internship as an internee I have learned a lot of things that has increased my knowledge
about this field but the main focus were upon General banking that includes clearing,
deposit, advances and remittance etc. I have learned the importance of banking sector
in the countrys economy as it is extremely useful for trade, industries, business and as
well as for the general public. In fact I have perceived that banking sector is just like the
life blood of countrys economy. As an internee I have learned a lot of useful things that
will play a very vital role in my future professional life.
2.2 Aim of the Study:
To observe, analyze and interpret the relevant data competently and in a useful
manner.
To work practically in an organization.
To develop interpersonal communication.
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To get familiarity with the organizational environment.

To get familiarity with the management work of analyzes the difference between
bookish knowledge and practical work.
2.3 Objectives of the Study:
To conduct thorough study of National Bank of Pakistan.

To understand the various operations and to equip with practical knowledge of the
National bank of Pakistan.

To get some field experience about job.
3. Overview of the Organization
3.1 Brief History of the Organization:

NBP was established with Ordinance No. XIX of November 9. 1949. British Govt.
devalued its currency in September 1949; India devalued its rupee, but not Pakistan. It
led to a crisis in trade between the two countries and India refused to lift the Pakistan
Jute. To solve this problem, namely NBP jute exports are determined by a regulation of
the GOP.
National Bank of Pakistan maintains its position as a leading bank in Pakistan
committed to higher standards of performance to set. It is the main partner for the
Government of Pakistan with special emphasis on promoting the economic growth of
Pakistan, through an aggressive and balanced lending policies, technology-driven
products and services offered through its large network of branches locally,
internationally and representative offices.
National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its
balance sheet size surpasses that of any of the other banks operating locally. It has
reiterated its role and has moved from a public organization in a modern commercial
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bank. The Bank's services are available to individuals, corporations and government.
Although still to act as trustee of public funds and as the agent to the State Bank of
Pakistan (SBP where not present) has diversified its portfolio and is today a big lead
player in the debt stock, corporate investment banking, retail and consumer banking,
agricultural finance, treasury services and shows increasing interest in the promotion
and development of the country small and medium enterprises while fulfilling its social
responsibility as a corporate citizen.
National Bank of Pakistan has an extensive branch network with 1,250 branches in
Pakistan and operates in major business centers in foreign countries. The Bank has
offices in Beijing, Tashkent, Chicago and Toronto. The agency has agreements with
more than 3000 correspondent banks worldwide. Its subsidiaries Taurus Securities Ltd.,
NBP Exchange Company Limited, NBP Capital Ltd., NBP Modaraba Management
Company Ltd. and CJSC Bank, Almaty, Kazakhstan, joint ventures between the Bank,
United National Bank (UK), First Investment Bank and NAFA, an Asset Management
Company (a joint venture with NIB Bank and Fullerton Fund Management in Singapore.
Bank's financial performance is remarkable. In 2006, total assets estimated at Rs635
billion, while deposits have grown to almost Rs502 billion. Profit before tax increased to
Rs26 billion. Earnings per share rose to Rs24.01 in 2006. The profit increase was
achieved through strong growth in core banking income. Interest income increased by
one billion RS10 by growth in the loan portfolio and an increase in spreads.
Advances increased by Rs48 billion to Rs316 billion. The Bank maintains a healthy loan
portfolio diverse in nature to the risk of credit concentration to counteract. It ranges from
providing credit to the UN under-banked market segment NBP Karobar for small and
medium enterprises, agriculture loans to large corporate customers.
The bank has also played an important role in financing the country increased trade,
which has spent over the years as a diversification took place.
The field is de-layered to improve customer service and faster decision making. As a
result of this de-layering zones were eliminated and the number of regions has
increased. At regional level organizational hierarchy was restructured and the
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operational and commercial activities are completely separate. This separation will
improve communication, decision making and promoting teamwork.
For the third consecutive year, the Bank is recognized as the best bank in Pakistan for
the year 2004 by the prestigious magazine "The Banker" UK (a subsidiary of the
Financial Times Group).
3.2 Nature of the Organization:
A bank is a financial institution which deals with money and credit. It accepts deposits
from individuals, firms, and companies at a lower rate of interest and gives at a higher
rate of interest to those who need money. The difference between the rate of interest at
which it borrows and lends is the profit of the bank. A bank, thus, is a profit earning
institute. Any bank that performs this functioning is called the commercial bank.
The nature of responsibilities of the Bank is different and unique from other
banks/financial institutions. The bank also handles treasury transactions for the
Government of Pakistan as an agent to the State Bank of Pakistan for handling
provincial/Federal Government receipts and payments on their behalf. The National
Bank of Pakistan has also played an important role in financing the countrys growing
trade, which has expanded through the years as diversification took place.
The bank is providing all banking services of mercantile and commercial banking
permissible in the country, which includes:
Accepting of deposits of money on current, fixed, saving, term deposit and profit and
loss sharing accounts.

Providing the lockers for the secret document and ornaments of the customers
Purchasing the securities
Providing the agency services for its clients
Transfer the funds for customer from one place to another place
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Borrowing money and arranging finance from other banks.

Advancing and lending money to its clients.
Financing of projects, including technical assistance, project appraisal through long
term/ short term loans, term finance and musharika certificates, etc.
Buying, selling, dealing, including entering into forward contracts of foreign exchange.
Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.
Receiving of bonds, valuables, etc. for safe custody.
Carrying on agency business for any description other than managing agent, on behalf
of clients including Government and local authorities.

Generating, undertaking, promoting, etc. of issue of shares and, bonds etc.
Transacting guarantee and indemnity business.
Undertaking and executing trusts.
Joint venturing with foreign dealers, agents and companies for its representation
abroad.
Participating in World Bank and Asian Development Banks lines of credit.
Providing personalized Hajj services to intending Hajjis.
3.3 Business Volume:

Business volume of National Bank of Pakistan is given as follows:
Year
Total Assets
Advances
Investments
Share holders
Equity
635,133
2008
316,110
53,045
139,947
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340,319
2009
762,194
211,146
69,271
817,758
412,987
170,822
81,367
2011
944,583
475,243
217,643
94,142
2012
1,035,025
477,507
301,324
103,762
2010
3.4 Reward Honors & Success stories during last 5 Years:

Global Finance Intelligence magazine "The Banker" published by the prestigious
Financial Times Group, London in its global survey suggested a merit list of top 1000
banks based on the best profit on capital, assets and return on assets ratios. About the
best returns of capital (percentage) scale, the National Bank of Pakistan was rated as
the highest in Asia and eighth in the world. This is the first time that a Pakistani bank's
top position in the world was.
In 2011 NBP is awarded by the Global Finance Magazine with the award of Best
Emerging Markets Bank 2011.

In 2010 bank was awarded by the The Banker magazine owned by the Financial
Times Group, London with the award of Bank of the Year.

In 2010 the bank was awarded by the Federation of Pakistan Chambers of Commerce
and Industry with the award of President of Pakistan Trophy and Prime Minister of
Pakistan Trophy.
In 2008 NBP is awarded by the The Banker magazine owned by the Financial Times
Group, London with the award of Bank of the Year.

In 2008 the bank is awarded by the worlds leading financial journal Global Finance
with the award of Worlds Best Foreign Exchange Bank 2008.
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In 2007 the bank was awarded by Banker Magazine with the award of Best Return on
Capital for 2006 amongst all Banks in Asia.

In 2006 bank was announced by Worlds leading financial journal, Global Finance with
the award of Best Emerging Market Bank from Pakistan.
3.5 Products of NBP

3.5.1 NBP Premium Amdani
Monthly Income Scheme
Earn up to 11% p.a.
Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5
years
Free Demand Draft, Pay Order and Cheque Book
Convenience of NBP online Aasan Banking (for online banking customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%
3.5.2 NBP Karobar (Mera Apna Karobar)
Minimum down payment, 10% of asset price (5% for PCO & Telecaster)
Tenure 1 to 5 years (for PCO 2 years)

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Grace period 3 months
Maximum loan amount Rs. 200,000/-
Age 18-45 years
Mark-up (variable) 1 year KIBOR + 2.00% p.a.
The customer will pay markup @ 6% p.a., rest will be borne by GOP
Life & disability insurance paid by GOP
subject to the availability of subsidy from GOP
3.5.3 NBP Saiban

The scheme was launched at a function in Karachi presided over by Mr. Shaukat Aziz,
Pakistan's Finance Minister.NBP Saibaan is the most affordable House Financing
Scheme in which a customer can avail now and repay the loan over 3 to 20 years
period.
Finance is available for home purchase, home construction and home improvement.
Period of repayment ranges between 3-20 years.
Loans available up to a maximum of Rs.10 million.
Mark-up choices available. Rate ranges between 7.5% 9.75%.
Minimum approval and disbursement timing.
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3.5.4 NBP Advance Salary
10 month salaries in advance (certain conditions apply).

Minimum documentation.
Repayable in 5 years.
No processing charges; no collaterals, no guarantees, no insurance.
Mark-up charged at 11% per annum on reducing
3.5.5 NBP Cash n Gold
Facility of Rs.5000 against 10 Gms of gold.

Mark-up 15.5% per annum.
No maximum limit of cash.
Repayable after one year.
Roll over facility.
No penalty for early repayment.
3.5.6 NBP Kisan Dost:
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Loans available to farmers for production, development, purchase of tractors, for the
installation of wells, purchase of agricultural equipment, micro-loans for go down
building, construction of fish ponds, livestock, the milk, for cold storage, bio-gas plants,
etc
Mark-up 11% per annum.

Loans available at the farmers doorsteps.
Agricultural experts to guide farmers.
Loans available against agricultural passbooks, gold ornaments and paper security.
3.5.7 NBP Cash Card:-
ATM + Debit Card

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

Comfortable environment for trading
No security requirement, except for the customers equity
Customers equity freely available for investment
Equity acceptable in cash or approved shares.
3.5.9 NBP Pak Remit
Pakremit is an internet based Home Remittance Service. This service is available to

U.S. residents for sending money to their families and friends in Pakistan. One must
have a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in
order to remit funds through this channel. Remitters in USA can log on to our user
friendly website, www.pakremit.com and easily remit funds to Pakistan from the comfort
of their homes, in a matter of minutes. The service is fully secure with advance
encryption application and is available for use 24 hours a day, 7 days a week. Fees and
exchange rate have been set at competitive levels and the remitters have the ability to
track delivery of funds as well.
Process:-
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1. Remitters log on to www.pakremit.com and after completing the registration
process, are able to remit funds. The whole process takes a few minutes.
2. Funds in Pak Rupees can be sent to beneficiaries, having an account with any
bank in Pakistan, including NBP. While funds are credited directly to beneficiaries
maintaining accounts with NBP, a pay order or demand draft is couriered to other
banks for their customers. Pay order or demand draft can also be couriered
directly to the beneficiarys office or home, if requested by the remitter. Funds in
US Dollars can be sent only to a Beneficiary maintaining a US Dollar account
with one of NBPs Foreign Exchange Branches.
3.6 Services of NBP:
3.6.1 International Banking:

National Bank of Pakistan is at the forefront of international banking in Pakistan which is
proven by the fact that NBP has its branches in all of the major financial capitals of the
world. Additionally, we have recently set up the Financial Institution Wing, which is
placed under the Risk Management Group. The role of the Financial Institution Wing is:
To effectively manage NBP's exposure to foreign and domestic correspondence
Manage the monetary aspect of NBP's relationship with the correspondents to support
trade, treasury and other key business areas, thereby contributing to the bank's
profitability
3.6.2 Demand Drafts:
If you are looking for a safe, speedy and reliable way to transfer money, you can now
purchase NBP's Demand Drafts at very reasonable rates. Any person whether an
account holder of the bank or not, can purchase a Demand Draft from a bank branch.
3.6.3 Mail Transfers:
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Move your money safely and quickly using NBP Mail Transfer service. And we also
offer the most competitive rates in the market.
3.6.4 Pay Order:
NBP provides another reason to transfer your money using our facilities. Our pay
orders are a secure and easy way to move your money from one place to another. And,
as usual, our charges for this service are extremely competitive.
3.6.5 Travelers Cheque:
Negotiability:
Pak Rupees Traveler's Cheques are a negotiable instrument
3.6.5.1 Validity:
There is no restriction on the period of validity
3.6.5.2 Availability:
At 700 branches of NBP all over the country
3.6.5.3 Encashment:
At all 400 branches of NBP
3.6.5.4 Limitation:
No limit on purchase
3.6.5.5 Safety:
NBP Traveler's Cheques are the safest way to carry our money
3.7
PEST Analysis:
It is very important that an organization considers its environment before beginning the
marketing process. The organizations environment consists of:
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1. The internal environment e.g. staff (or internal customers), office technology, wages
and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors,
suppliers, our competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
3.7.1 Political
Privatization policy and deregulation.

Impact of subsidized credit affecting and NCBs.
Employment practices, Unions, Associations.
Political Interference and harassment.
Incidents of high taxation on banking industry.
3.7.2 Economical
Constraints in mobilization of public savings because of inflation.

Staff cost.
Operating cost.
Bad debts
3.7.3 Social & Cultural
Inadequate human resources
Cultural strain to savings
Defaulters lobby
Declining education and work ethics
Inadequate accountability
Adequate empowerment
3.7.4 Technological
Inadequate communication infrastructure

Inadequate computer facilities
Inadequate IT training
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3.8 Contribution of Organization towards Economic Development:
NBP plays an important role for the Pakistani economy by reducing the introduction of
various programs and schemes for the welfare of society. Its contribution to the
development of small and medium businesses is considerable. It has a wide range of
consumer products, to improve business and cater to different segments of society.
Some schemes are specifically designed for low to middle income segments of the
population.
These include Karobar NBP, NBP Advance Salary, Saiban NBP, NBP Kisan Dost, and
NBP Cash n Gold. It has implemented special credit programs and small agricultural
financing, business and industry, administrator Qarz-e-Hasna loans to students,
separate
rules
for
the
unemployed,
the
public
transport
system.
National Bank of Pakistan's profitability has earned a place among the top ten banks in
the world. It has beaten all Asian banks, including those in the private and public sectors
in the region. Global Finance Intelligence magazine "The Banker" published by the
prestigious Financial Times Group, London in its global survey suggested a merit list of
top 1000 banks based on the best profit on capital, assets and return on assets ratios.
About the best returns of capital (percentage) scale, the National Bank of Pakistan was
rated as the highest in Asia and eighth in the world. This is the first time that a Pakistani
bank's top position in the world was.
4. Organizational Structure
4.1 Organizational Hierarchy Chart of NBP
Designation of Higher Level Office

PRESIDENT
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SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22
EXECUTIVE VICE PRESIDENT

GRADE 21
VICE PRESIDENT
GRADE 20
ASSISTANT VICE PRESIDENT

GRADE 19
GRADE I OFFICER
GRADE 18
GRADE II OFFICER
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GRADE 17
GRADE III OFFICER

GRADE 16
4.2 Number of Employees:

Total current staff position of NBP is as follows:
Permanent
13237
Temporary/ On Contractual basis
842
Bank's own staff strength at the end of the year
14079
Outsourced
2350
Total Staff Strength
16429
National Bank of Pakistan is limited to the fast growing bank in Pakistan and spends
much of innovation in the banking sector of Pakistan from the first day of its
establishment. The bank has been named the best bank his entire career of 61 years
old. Bank is currently in many cities of Pakistan with the network of 1255 branches. The
bank is currently operating with approximately 16,429 employees throughout Pakistan
and abroad. Be the member of such an organization is an honor for the employees and
the National Bank is all about due to the best human resources and competitive
advantages for the other banks operating in Pakistan.
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Bank is not only providing services in the 21st century Pakistan, but also creating job
opportunities for the young blood of Pakistan.
4.3 Main Offices
Offices or Field Offices

National bank is the one of the biggest bank in Pakistan having more than 1250
branches that is serving the customers.
4.3.1 Head office of National Bank of Pakistan:
National Bank of Pakistan Head office NBP building II Chandigarh road Karachi,
Pakistan
4.3.2 Domestic Branches:
The National bank of Pakistan has 1255 branches in the Pakistan. That is operating in
whole of Pakistan in
Punjab
Sindh
Baluchistan
Khaber Pakhtoonkha
Islamabad
Azad Kashmir
4.3.3 Overseas Branches:

NBP has the overseas branches /offices in the following countries:
USA
Canada
Germany
France
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Bahrain
Saudi Arabia
Bangladesh
Hong Kong
And many more countries around the globe
4.4 Introduction of Departments of NBP
Banking procedures are divided between different departments. Different departments

do their work in the presence at the bank policy. The National Bank of Pakistan every
branch is divided into different sections depending on their size and volume of business.
Head of the department manages each department and officials of the branch to follow
procedures. The departments working within the country National Bank of Pakistan
branch includes:
a) Cash Department
b) Account Opening Department
c) Clearing House Department
d) Advances Department
e) Remittance Department
f) Pension and disbursement department
g) Computer Department
h) Deposits Department
i) Accounts Department
4.4.1 Cash Department:

Cash department includes all physical movements of cash in the bank by the cash
department. As bank lending and borrowing institution, so cash is the highest priority of
the Bank. Another aspect is that cash department for security purpose, security in a
sense that there was no misappropriation of funds or cash led to the bank by a party or
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person. The efficiency of the bank is also associated with this department more efficient
the bank is stronger and is working the cash department.
4.4.2 Account Opening Department:

The opening of an account is the creation of banker-customer relationship. This
department performs the duty of opening accounts for customers. They also issue
checkbooks to customers. If a customer wants to open an account with the bank
opening an account department needed some documentation and analysis of the
document information after the officer takes notes in opening an account register and
issue the account number of the customer. After pouring some customer can operate
his account.
4.4.3 Clearing Department:
The Clearing System, the checks must be paid or settled and central settlement for
claims and liabilities between banks. The SBP clearing coordinate activities through its
offices, known as clearinghouses, established in major cities and towns. Where SBP not
maintain its own office, another bank, usually the National Bank of Pakistan (NBP)
performs this function. But the clearing facility is only available for checks / instruments
drawn on banks located within the same city / area clearinghouse.
4.4.4 Advances Department:

The bank is profit seeking institution. It attracts surplus balance from the customer at
low rate of interest and makes advances at a higher rate of interest to the individuals
and business firms. Credit extensions are the most important activity of all the financial
institutions, because it is the main source of earnings. Advances department is one of
the most sensitive and important department of the bank. The major portion of the profit
is usually earned through this department.
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The advances Department receive application from intending borrowers. After receiving
application the advance department processes it further. After analyzing and detailed
investigation, they decide whether to approve the loan or not. Some loan approvals are
made by the Manager of the branch within his powers as prescribed by the banks
higher authorities, while some loan applications are submit to higher authorities for their
approval.
4.4.5 Remittances Department:

The department handles the payment transfer money from one place to another. Funds
transfer facility or transmission of funds is one of the main functions of banks around the
world. Remittances through banking channels saves time, costs less and eliminate the
risks involved in physical transportation of money from one place to another.
4.4.6 Pension Disbursement Department:

The National Bank of Pakistan was Pakistans leading institution which performs the
function of pension payments or disbursements to pensioners. The pension
disbursement department is responsible for making pension payments to Government
Pensioners. The person who wants to receive his/her pension from National Bank of
Pakistan can open an account with any branch of National Bank of Pakistan. The bank
performs this function through Demand Draft Purchase or simply called DD Purchase.
This department performs following functions:
Making Pension Payments

Opening of Account of Pensioner
Entry of amount paid to pensioner in Government Pensioners Register
Verifications of Signatures of Pensioners
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4.4.7 Computer Department:
This department is playing a very important role in making the banking procedures
faster and helping the bank for providing better services to its customers. The National
Bank of Pakistan has three types of branches in all over Pakistan, these included Online
Branches
4.4.7.1 Online Branches:
The branches are directly related to the central computer AS-400 through wide area
networking via fiber. These branches are dumb terminal directly connected to the
central computer.
4.4.7.2 Evening Data Receiving Center:
Batch data form branches at the main office in diskettes and manual form branches in
the form of hardcopy. Data consists of transactions in the income statement, the current
account, advance etc as Daily Transaction Report.
4.4.7.3 Data Entry Department:
The next task after receiving the data is to enter that data in to a computer. The floppy
disk is directly inserted in the computer. The program in used is based on COBOL
language. This program is designed in a way that it demand Hash Value value before
opening the floppy for further action this value serve the purpose of password or pin
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code send by the branch on entering that value the data enter in to the computer. This
computer is attached with the terminal of central computer. The operator of that terminal
takes the data from the computer and converted it in to a text file through that terminal
the data finally goes to the central computer.
4.4.8 Deposit Department
The primary function of the National Bank of Pakistan is to accept and surplus money
from the people who volunteered their deposits with the Bank. Like all other banks,
National Bank of Pakistan also turns to draw as much as it can depositor. The escrow
service accepts / collects deposit account holders.
The National Bank of Pakistan offer different deposit schemes to its customers, which
includes the following:
Current Deposits
PLS Saving Deposits
Fixed Deposit Account ( Time Deposits)
Foreign Currency Account
NBP Premium Aamdani
National Income Daily Account (NIDA)
4.4.9 Accounts Department:

Accounts Department of the bank can be considered the most important department.
This department is basically concerned with processes and activities of recovering,
sorting, summarizing and reporting data resulting from the whole day transactions of all
the departments. Actually the process of this activity starts from the preparation of all
the required vouchers by different related departments. When these vouchers are
prepared, these are posted into respective computer terminals by the relevant
departments. Before merging, a batch list is printed out by Computer Department and
duly checked by the respective departments. After this, merging stage comes, after
which a proof list is printed out. This is the stage, where Accounts Department starts
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performing its function. Proof list is checked by the Accounts Department. The account
department prepare following vouchers and reports
Monthly Profit & Loss account- F48
General Ledger
General Ledger- Abstract
Check Book Issue Register
Western Union payments Register
Demand Notices
Miscellaneous Book
Bank Transfer scroll
Posting NBP Advance Salary
Daily Statement- F21
General Ledger- Head wise
End of Day register
Posting National Income Daily Account (NIDA)
Monthly return register
Charges A/c register
P-L-S Profit list
Weekly Telegram
Mail Transfer Register
Government Scroll
Provident file
Government Scroll Debit & Credit
Transfer Responding Advice Dispatched Register-F15
Cash Remittance IN
Cash Remittance OUT

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NBP General Account
Utilities register
Closing entries
Daily activity checking
Minor expense recording
4.5 Comments on the Organizational Structure
There is excessive workload on NBP employees; bank staff sits for long hours to
complete their work. Staff members have to work continuously from morning till evening.
There is unequal work distribution among newly employed staff and seniors. Seniors
work symbolically while new comers are laden with heavy responsibilities. Same is the
case with female bankers; they have to do work nonstop till closing.
Part-II
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5. Internee Work
5.1 Brief Introduction of the Branch:
I worked in National bank branch situated at Morr Emanabad Gujranwala. I did my
internship from 22-07-2013 to 30-08-2013. This branch is not offering all the products
and services as mentioned above, as few services are offered only at regional offices or
head office level but still providing enough services. The branch is well equipped with all
the required resources which are needed in order to provide good services to the
customers. The total number of people working in the branch is 10.
Branch Details:
Branch Name
NBP Morr Emanabad Branch
Branch Code
0772
Address
Morr Emanabad G.T Road Gujranwala
Phone
0553263868
Fax
0553261868
Tehsil
Gujranwala
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District
Gujranwala
Province
PUNJAB
SWIFT Code
NBPAPKKA02G
Status
ONLINE BRANCH
Email
AFZALMALIK@NATIONALBANK.COM.PK
5.2 Details of Supervisors:
Shaikh Ihtashaam Ahmed OG I

Rafaqat Virk
OG I
Faiz Fareed
OG II
(Manager)
(Manager Operations)
(Credit Officer)
5.3 Weekly Time Table:

I worked in NBP (Morr Emnabad Branch ). I completed 6 weeks of internship and performed
many activities there. My weekly time table was as follows:
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Department
Weeks Date
Clearing
Clearing
23/07/2013
Week
1
24/07/2013
Day
Daily Work
Introduction with all the Staff member of th
branch
Tuesday
Wednesday
Introduction to Clearing Department
Clearing
25/07/2013
Thursday
Inter City
Clearing
26/07/2013
Friday
Inward Clearing
Supervisor
Department
Clearing
Clearing
Clearing
Clearing
Clearing
Name: Mr. Faiz Fareed

Weeks Date
29/07/2013
30/07/2013
Week
31/07/2013
2
01/08/2013
02/08/2013
Signature -------------
Day
Monday
Tuesday
Wednesday
Thursday
Friday
Daily Work
Outward Clearing
Outward Clearing
OBC
OBC
OBC
Supervisor Name: Mr. Faiz Fareed

Department
Remittances
Remittances
Remittances
Remittances
Remittances
Weeks Date
05/08/2013
06/08/2013
Week
07/08/2013
3
08/08/2013
09/08/2013
Signature ------------Day
Monday
Tuesday
Wednesday
Thursday
Friday
Daily Work
Introduction to Remittances
Introduction to demand draft
Introduction to demand draft
Introduction to Pay Order
Introduction to Pay Order
Department
Remittances
Remittances
Remittances
Remittances
Remittances
Weeks Date
Week
4
12/08/2013
13/08/2013
14/08/2013
15/08/2013
16/08/2013

Department
Weeks Date
Monday
Tuesday
Wednesday
Thursday
Friday
Daily Work
Introduction to Online transfer an
receiving of Cheques
Receiving the cheques of same branch
Fixing the stamps on Cheques
Passing the cheques to cash counter
Receiving the Online Transfer
Daily Work
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Account
Opening
Account
Opening
Account
Opening
Account
Opening
Account
Opening
19/08/2013
20/08/2013
Week
5
21/08/2013
22/08/2013
23/08/2013
Monday
Detailed Introduction to Account opening
Tuesday
Giving detailed information about types

account to clients
Wednesday
Receiving the account opening form

Receiving the application and issuing
Cheque Book
Receiving the application and issuing
ATM Card
Thursday
Friday

Department
Weeks Date
Money Gram
26/08/2013
Money Gram
Credit
Credit
27/08/2013
Week
6
28/08/2013
29/08/2013
30/08/2013
Daily Work
Introduction to Money Gram
Monday
Tuesday
Wednesday
Thursday
Friday
Dealing with clients and receivin

application form for money gram
Introduction in Credit Department
Different Credit Department products an

dealing with loans
Meeting with Branch Manager and thankf
to all the staff of the branch for cooperatio
during the Internship
Signature -------------
5.4 Detailed Description of the Departments in which You Worked

5.4.1 Account Opening Department
The primary function of National Bank of Pakistan is to accept and receive surplus
money from the people, which they willingly deposit with the Bank. To accept the
deposits from the customer there is a need for developing banker customer relationship
and account opening department perform this activity. A person who wishes to open an
account with the bank has to fill an account opening form obtained from any branch of
National Bank of Pakistan. The bank officer tactfully obtains Information about
character, integrity, responsibility, occupation and the nature of business of the
perspective customer. Any individual, who has attained the age of majority and is of
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sound mind, can open and maintain his/her account Two or more individuals may open
an account jointly. Similarly, business organizations such as sole proprietary concerns,
partnership firms, and limited liability companies as well as non-profit organizations like
clubs, trusts, societies, associations and NGOs etc, may open their accounts.
After analyzing the detail documentation and required information. Like all other Banks,
National Bank of Pakistan also take incitation to attract as much depositors as it can.
The National Bank of Pakistan offer different deposit schemes to its customers, which
includes the following:
Current Deposits
PLS Saving Deposits
Fixed Deposit Account ( Time Deposits)
NBP Premium Aamdani
National Income Daily Account (NIDA)

The Remittance department deals with the transfer of money from one place to another.
Funds transfer facility or remittance of funds is one of the key functions of the banks all
over the world. Remittances through banking channels save time, costs less and
eliminate the risks involved in physical transportation of money from one place to
another. National Bank of Pakistan transfers money in the following ways.
Pay Order
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Slip
Call Deposit Receipt
Letter of Credit
Travelers Cheque
5.4.3 Kinds of Remittances
Transfer within the branch

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Transfer from one branch to another
Transfer from one bank to another bank in the same city
Transfers from one bank to another bank in two cities.
All the cheque and negotiable instrument, which are drawn or received from other bank,
are processed and subsequently settle by the clearing department.
For a bank, following are the requirements of being a member of clearing house:
It must be scheduled bank i.e. it is registered
It must have account with State Bank of Pakistan
Sufficient balance should be in his account
Normally clearing is carried out in SBP, but in the city where there is no branch of SBP
than National Bank work as subsidiary of SBP.
5.4.5 Types of Clearing
There are two types of clearing
Inward Clearing
Outward Clearing
In inward clearing the Cheques of other banks comes in National Bank while in outward
clearing the Cheques of National Bank goes to other banks.
5.5 Description of the Operations Performed in Concerned Department

5.5.1 Requirements for Account Opening and Closing of Account
Opening an account with the bank is the creation of banker customer relationship.
There are some terms and conditions to follow in order to build this relationship.
5.5.1.1 Terms and Conditions
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Account opening requires things:
National ID card of the customer and introducer
5.5.1.1.1 Introducer
Introducer is a person having the account in same branch and gives guarantee about
the customer. If the introducer is not proper then 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.
5.5.1.1.2 Customer
Customer is the person who comes with the purpose of opening the account
5.5.1.2 Procedure of Account Opening
First, the customer is required to an application form. Then he attaches a photocopy of
his ID card and fill in the signer. Now he fills the pay-in slip and deposit money on the
counter. Assigned to a bank account within one day after confirmation from
headquarters to Mall Road Lahore. Now he fills the pay-in slip and deposit money on
the counter.
Following things are needed for opening of account:
Account opening form
Letter of thanks
Specimen Signature card
Issuance of cheque book
Next of kin
5.5.1.3 Account Opening Form

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

The signature card included the name and specimen signature of the customer
5.5.1.5 Next of Kin
The families of the customer authorized the bank to support the work of their PLS /
Current account in foreign currency to be paid by the person describing the relationship
of the person with the customer after the death of the client.
5.5.1.6 Letter of Thanks
Letter of thanks is the latter issued by the bank to the customer for two purposes
1st purpose is to say thanks to the customer for opening the account in their bank
2nd purpose is to confirm the address provided by the customer while opening the
account.
5.5.1.7 Issuance of Cheque Book
Cheque book issued to the customer after sending the letter of thanks when the
customer comes with the last of thanks and request the issuance of the check book. A
check book (usually have 25 leaves) is issued to the customer.
5.5.2 Closing of Account
The client may close the account. The customer is required to submit an application for
closing the account. The account is closed and its balance is paid to him after deducting
the closing charges
There are many reasons for closing of account
5.5.2.1 Account holder Owen request

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Death of account holder
Closing of account due to the bad manners of account holder
5.5.2.2 Functions of clearing department

In the clearing department following operations are performed
To accept Transfer, Transfer delivery, clearing and collection cheques from the
customers of the branch and to arrange for their collection.
To collect amount of cheques drawn on members, sub-member of local clearing house,
sent for collection by NBP Branches, not represented at the local clearing house
Receiving and scrutinizing the cheques and other deposit instruments, and the pay-inslip at the counter
Fixing the stamps
Scrutiny and receipt by the authorized officer
Returning the counter file to the depositor
Certificate and confirmation by the officer in charge of the department
Separating the cheque into transfer, transfer delivery, and clearing cheques
Functions of Remittance department
The need of remittance is commonly felt in commercial life particularly and in everyday
life general. A major function of any banking system is the transfer of funds from one
client or one place to another. By providing this service to the customer the bank earns
a lot of income in the form of service charges. This department deals with local currency
remittance i.e. remittance from one city to another without actually carrying the currency.
NBP uses following instrument for transferring of money
Demand Drafts (DD)
Telegraphic Transfer (TT)
Demand drafts (DD)
DD is a written order given by the branch of the bank on behalf of the customer to other
branch of the same bank to pay the certain amount to the customer. DD are issued for
the particular place other than place of issuance. A draft is a Cheque drawn by a bank
on its own branch or any other branch of another bank at a different place requesting it
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to pay on demand a specified amount of money which is already received to the person
named on it.
5.5.2.3 Documentation
A printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the applicant
and credit order is dispatched to drawee branch. Following are the pre-requisites for the
processing of DD:
Bank Serial No
No. of DD
Central No
Rs.60 Postage charges
0.02% Withholding tax
Telegraphic transfer (TT)
In this case the authority is given from one bank to other on the behalf of the customer
through telecommunication to debit their inter office account through them and credit
their parties account mentioned in TT. It is an inter bank transaction. Telegraphic
transfer is an instant transfer of funds. Through this method applicant can transfer
money from one place to another place.
Applicant has to fill a form along with depositing amount to be transferred and bank
commission. NBP charges the commission at the same rate as in the case of demand
drafts.
Documentation
Issuing Branch Name & Code

Beneficiary Branch Name & Code
No. of TT
60 Rs. for Postage and 140 Rs. for Fax
Amount in words & Figure
0.02% Withholding tax
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5.5.3 Western Union Department
In 2002 the Bank signed an agreement with Western Union for expanding the base for
documented remittances. Basically Western union department provide service for
receiving of money from different countries. Through western union you can only
receive money but cannot send the money to other country .The main advantage of
western union is that it is not necessary that the person who is going to receiving money
has account in bank .The customer directly receive the money from bank. Mostly the
amounts are in the form of PKR, Dollar Euro and in Pond.
Required for western union
Western union secret code number

CNIC copy of receiver
Telephone number of receiver
Name of the sender
5.6 Detail Description of the Tasks Assigned

As stated above in the weekly schedule of my internship. I have gone through different
departments of general banking risks such as the clearing department, remittances
department, opening a bank department, money grams, and advance section and a
large number of tasks in this section are for six weeks of my internship at the National
Bank of Pakistan Morr Emanabad branch of the kind guidance of my supervisor
Faiz Fareed. On the first day of my internship my companions introduced me to all
employees in the industry and tell me about the different departments of general
banking risks involved in the industry and the activities conducted in these departments.
The next day I was guided by my immediate supervisor about the department and the
clearing operations conducted in the department and the importance of the clearing
department of a bank. He tells me about the intercity clearing and how that service is
performed by the NIFT and the functioning of the NIFT and the role of the banking
industry, which operates as a subsidiary organ of State Bank of Pakistan then I started
working when practically my supervisor guided me how practical the check clearing for
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active and how to check for the clearing send and receive. But first of all he tells me
what kinds of checks, the Customs Clearance, Customs Clearance including the checks
drawn in the industry, other than the controls of the National Bank of Pakistan. I started
receiving checks for Clearance by filling out the coupon and attaching the check with
the slip of NIFT and then write the name of the person, the amount, check number, city,
and the bank and the introduction of the e-mail box of the NIFT. All day I enter same
activity in the clearing department, and I enter the Clearance nearly two days
continuously and I was enjoying this activity and feel good. As a control, which is sent to
clean up the bank then ejected from the courier service are cost if the check cleared
then
no
fee
received
by
the
bank?
Then I find out about the outward clearing and how to control our branch established in
another branch or city received and I started receiving these checks and the writing of
these checks in the registered and making these checks on the account counter knows
the purpose of clearing, such as the clearing of the amount actually presented in the
respective presented with the signature and the signature on the signature copy. After
active and passive clearing I was quite aware that the areas not included in the intercity
and what NIFT is not providing the services of the clearing house checks accepted for
Clearance to these remote branches for the purpose of clearing to send. These checks
are sent by courier such as TCS, and postage costs are received by customers.
So far I have spent two weeks in the bank and clearing work in the department and
practical implementation of the clearing activities. Now I have to shift from clearing of
remittances department. Remittances from the word it makes clear that the transfer of
funds from one place to another within a country or outside the country. After the
implementation detail with my direct supervisor about the department and the clearing
operations conducted in this section. DD is a written order from the branch of the bank
account of the customer to another branch of the same bank to pay certain amount to
the
customer.
DD
issued
for
specific
other
than
the
place
of
issuance.
A draft is a check drawn by a bank for its own agency or other branch of another bank in
another, the claim to pay on demand a certain amount of money that has already been
received to the person named on it. In this section I started making the DD Pay Order
etc the instruments for the purpose of the transfer of funds used from one place to
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another place in the same branch or the other on the same bank branch. By filling out
the voucher and the cash counter for accepting the money and paying the slip in desk.
After this I know about the various other activities in this section is not, as the receipt of
funds by completing the receipt and acceptance of required documentation and passing
the cash counter and receiving checks from the same branch and honoring checks
thesis presented as it is the responsibility of the industry and to counter this I have come
to know the sharp fundamental things to the checkout and fixing the stamps on the
control
and
passing
the
check
at
the
cash
counter.
I also join the Western Union branch. In this cabin I treat the customers at the branch for
receiving remittances sent by their relatives, friends, etc. There were two types of
remittances through Western Union and the second direct transfer of the National Bank
of Pakistan. In this cabin I agree with the application of CNIC of the customer and the
secret code of eight digits. Then enter the information in the online form Western Union
and if the information matches than taking the print and fixing the marks and passing it
to
the
cash
counter.
It is the fifth week of my internship; like clockwork and I am learning fast and I got the
account opened in the department store to close. My immediate supervisors tell me in
detail about the department. Opening an account is basically the step of building
customer relationships baker and guided me on the different types of accounts are
offered in the industry and the fundamental requirement of opening an account. First,
the customer reach the age of majority and a national identity card to receive the CNIC
and fax it to the regional offices of NADRA for the purpose of verification and after
verification of the other basic requirements, such as knowledge about the nature the
customer's source of income etc to fill the account opening form and receive this form
from the customer and takes the customer's signature on the signature model and the
issuance of the check book and filling the deposit cash slip for the first deposit required
to
open
the
account.
In the last week of my internship, I join the pension cell and this cell I almost made
increases in the pension and the pension issue and the scrolling of the amount of the
pension and the calculation of the total at the end of the day. In the same week I also
join the department advances in the industry and learn about the different types of credit
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offered in the industry, their needs, abilities, and interest and calculations, "the renewal
of the cases and closing the various cases in the credit department. I have been
through several departments and performed the various tasks given to me by my
immediate supervisor. At the end I will only say that I really enjoy working of banks and
learn a lot about banking, which every person should know who is a general account
and dealing with the banks familiar with these procedures really help in the routine life,
while trading in banks.
5.7 Internship Learning Summary

The main purpose of doing an internship is not only to meet the academic requirement
or the achievement of good quality, but also to learn about the application of our field of
study in our relevant market. During the six weeks of my internship, I learnt a lot and
this learning will have the real impact on my future life or career or social life in a
society. In this learning phase the institution in which you are doing your internship also
matters. As the cultural institutions, the core values and beliefs of the people and their
attitude towards the organization influence the learning process.
5.7.1
What skills and qualifications you think that you have gained from the internship:
Before the beginning of my internship at the National Bank of Pakistan Limited, I was
just thinking it was a regular activity to do an internship, because students usually do
not show a real interest in this healthy activity. I have learnt many of the skills down and
write all these is very difficult, because some of these skills are always hidden that only
comes at certain stage . I'll share some of those skills I have learned throughout this
period of the internship.
How to develop the attitude of doing hard work in an institution and perform the same
activities continuously over the period. How to show sincerity and dedication towards
the
organization
and
towards
the
members
of
that
organization.
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How to deal with customers or a community and how to show patience in a difficult
situation and making people feel they can trust you and then actually overcome the
prevailing problems.
The development of coordination between job performance and between your lifestyle
so you never have enough of the routine activities of your professional life.
It improved my communication skills and above all the talking and the influencing power
How to work in a team led by someone and how to deal with colleagues in your
professional life. Paying respect to the desired people and appreciate the work of others
The most interesting and important things I have learnt and have developed many skills
in myself because of the Internship communication with hundreds of clients I know
about the psyche of people with communication and reading through their behavior the
way the conversation etc
5.7.2 What kind of responsibilities you have undertaken during the internship
period?
My responsibilities were following ;
To open account
Providing money to customers through western union process
To perform scrolling
To perform NADRA verifications
Inward clearing
Outward clearing
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As mentioned in the daily work report section that I've gone through several general
banking counters and I have different responsibilities in this period in each
department. Now at this point I will generally talk about the responsibilities I have
undertaken
in
this
period.
Firstly I undertook the responsibility of the punctuality and the development of

the attitude I need it on time so that everyone can not develop the negative
thinking about me
To work hard and accomplish the assigned tasks on time.
Be ready to do something new or to learn something new in the field
Before the beginning of my internship at a bank, I had some confusion about the
banking system of Pakistan, as the environment of the banking sector by my friends and
family I was little aware, while thinking about their career in this industry, but after this
stage removes all the confusion of the mind. No doubt the operation is quite difficult for
the banks and it really affects the social and family setup of a person over the jobs in
other industries, but someone has to sacrifice something to the excellent position and a
clear position in an institution of the future because there is too much Banking scope
and one can grow as he dreamed in his life with hard work and dedications. So I've
decided to jump into the banking sector in the future, because I'm seeing the beautiful
future in this business because I enjoyed while working in the bank.
5.7.4.1 Correlation between the Internship Activities and Class Room Knowledge
If my perception and the activities I have done, I have my own view that the classroom
knowledge and actually working in the market is not too much highly correlated in my
opinion. In my view might be, there is a high correlation to the U.S. market, because for
the past six semesters we have been through the books of American writers and have
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written about their own market and the Pakistani environment and culture is completely
different to against the U.S... Up to a certain extent the procedures and the role of the
central bank in this system is correlated, but all the other things like work, reward
systems, benefits and other matters relative though it does not exist in our environment.
So I think there is a need to change the academic syllabus and classroom activities that
can be the future workforce, according to the market requirement to produce.
Finally I just want this department that this sort of healthy activities in our education
system must be fostered at all levels with students. Students should know how their
academic knowledge can be used into practical work that will benefit him in his future
life.
6. Conclusions of the report

6.1 A summary of key conclusions derived from the internship experience.
It appears from this report and the accounts of the NBP that NBP will progress by leaps
and bounds an aggressive and innovative financial institution and continue to stick to
the tradition of understanding the customer needs and looking for new ways to serve
them, the earnings of NBP have grown considerably in recent years and this trend is
expected to continue into the future. Further integration and productivity will result in
better performance in terms of turnover and service quality in the coming years;
therefore, we conclude that NBP has a very prosperous present and future, in which the
shareholders wealth maximization is assured. The strong leadership of Directors and
management and the continued efforts of staff at the National Bank will be able to
provide more superior products and services to clients and contribute more to economic
and social development of Pakistan, while the development of a greater future. Side by
side, I think if the bank would cover these recommendations and it would control in such
a situation that really will lead to the path of prosperity, development and integrity.
6.2 General Observations about NBP:
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The banking sector in Pakistan has great potential for investment and job creation for
young and energetic generation and offers bright future. No doubt, the job of a banker is
hard and it is difficult to achieve the goals, but one can find the status of respect and
honor in society. The need of time is to solve the economic crisis and terrorism in the
country in order to increase foreign investment. The foreign investors should be
encouraged so that they might show their willingness to invest in the banking sector but
due to terrorism, foreigners do not feel it a safe to undergo investment in Pakistan
because of this reason, they recover their investment. The need of the hour is to
increase foreign and domestic investment so that it can play a vital role in economic
growth of the country.
6.3 SWOT ANALYSIS

The SWOT analysis is done by the organization for the environmental scanning. The
strength, weaknesses, opportunities and threats are analyzed by organization from the
external environment. NBP SWOT analysis is given below:
6.3.1 Strengths
One of the National Bank's brands is its great strength. It has always been considered
the mainstay of the country wise asset economic scenario that balances point. Its
image, working, networking and reputation have created a sentimental and emotional
attachment of people with the bank.
Full electronic network is the strength of the bank. Now the bank has the ability to
compete with multinational banks and keep pace with the changing and rapidly
expanding world of the computer have become necessities today. The reserve funds
provide
positive
sign
if
they
have
increased
over
the
previous
year.
Another competitive advantage that the bank has on the rest of the competitors is the
company growing globally for a large catering and large group of customers and
maintaining standards of excellence worldwide and other strengths of NBP.
6.3.1.1 National Institutions
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The great strength of NBP is owned by the Government of Pakistan. So people can
believe and be able through their large investments in NBP without the fear of failure in
the future and thus NBP is the most reliable and trustee institution in Pakistan.
6.3.1.2 ORGANIZATION CULTURE
NBP organizational culture was very friendly and interesting. Employees have a very
cooperative environment among themselves. They have created loyalty to the
organization to deviate from their future efforts and energies. The staff members
consider the organizational problems as their personal problems and try their best to
solve them and work for the prosperity of the organization.
6.3.1.3 STRATEGIC TOP MANAGEMENT
Fortunately NBP has from time to time best top management.
6.3.1.4.
INDUSTRIAL POLICIES
NBP helps the government on the implementation of its industrial policies with respect
to economic growth of the country.
6.3.1.5 LENIENT POLICY WITH THE CLIENTS
Workers of NBP deal well with their clients. So that people feel satisfaction and will
continue taking services of NBP.
6.3.2 WEAKNESSES:
National Bank created its own weakness by downsizing. As a result of downsizing
several experienced and dedicated employees were either forced or offered the
opportunity to leave. This downward trend could cause a major threat to the bank as its
competitors would occupy its market share, leading to corrupted image and reputation
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of the bank and therefore constitute a danger in the long term. The graph shows a
decline in the performance of the bank. NBP major shortcomings are given below:
6.3.2.1 LESS ATTENTION TO THE RURAL DEVELOPMENT

NBP portfolio shows that they finance projects only in big cities of Pakistan. But a
reasonable attention is needed in the project financing of rural-based industrial projects
in the country.
6.3.2.2 POOR ADVERTISEMENT
I have observed this that in comparison with other banks; NBP is very poor in
advertising themselves, their products and their services.
6.3.2.3 POOR NETWORK
NBP has offices in major cities of Pakistan and abroad that other competitors do not
have. Despite all, the branches have less online network.
6.3.2.4 Political interference
Political interference in the recruitment system

Uncertainly among the employees due to threat of downsizing
6.3.3 OPPORTUNITIES
National Bank has very good prospects for the future. They plan the region their past
glory, not only in terms of profitability but also the latest technology and competent
workforce. Moreover, NBP is the only bank that has facility of collecting bills from 9
hours up to 5 hours. NBP is considering setting up an exclusive utility bank in
collaboration with a private company that would provide this service for 12 hours.
6.3.3.1 SPONSOR THE IT BASED PROJECTS
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This is the best opportunity available to all banks and NBP that it can sponsor the IT and
computer-based projects as the next century is the century of information technology
and as a new day business community will have all the attention to this area.
6.3.3.2 GOODWILL AND BETTER IMAGE

NBP has the advantage of generating more deposits and attract valuable customers
due to better image in the business world. NBP also has advantage of increasing credit
lines. This is only due to proper treatment and a better image, that NBP has direct credit
lines acquired from abroad only be achieved by a better image can NBP help in an
explanation of its activities.
6.3.3.3 GROWTH IN THE INDUSTRIAL SECTOR

NBP has important function in financing projects and it does this with full commitment.
Fortunately industrial sector in Pakistan is growing again so the business opportunities
of NBP are also growing.
6.3.4 THREATS
If there is a threat to the entire economy, it will be a threat to the National Bank. The
freezing of accounts by the State Bank of Pakistan has caused problems for the Bank.
But the latest facts and figures indicate that banks big rivals like MCB and HBL can
cause threats for the bank in the long term, they can snatch away the market share by
attracting a large number of customers due to rising standards of their giving quality
service and value added products. Other major threats are as under:
6.3.4.1 POLITICAL INFLUENCE AND INSTABILITY

This is the major threat to any business organization in Pakistan because of political
influence; NBP is facing many problems in daily course of business and this is affecting
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the profitability of NBP. Political industry is even a threat to NBP as NBP faces much
political pressure while recruitment.
6.3.4.2 SICK PROJECTS
NBP's sick projects are increasing day by day due to economic ruin. If our economy is
weakening day by day, a large number of side-projects are becoming increasingly so ill
that it has effect on profitability, even affects the survival of NBP.
6.3.4.3 LACK OF MODERN BANKING TECHNIQUES

NBP next fifty years old style of banking in the computers of NBP Symphony word
processor is still used. What is the oldest word processor because of this deposit is
looking to be fixed, due to the provision of credit cards and other such services from its
competitors both local and foreign banks, it seems limiting factor in deposit mobilization
efforts of the corporation.
7. RECOMMENDATIONS & SUGGESTIONS

NBP is an effectively operating profit and making organizing and carrying out its
activities under a particular system of procedure. The main regulatory body is the State
Bank of Pakistan, which provides policy guidelines and ensures that money market
operates on the basis of sound professional while, the head office sets the whole
procedure of the functions and operations. This procedure is upgraded over time in
order to improve access and basic procedures for the effective regulation of its
capabilities in order to bring them at par with international practices. Here are some
suggestions that my opinion can add some data for efficiency and better performance of
the NBP as an organization in general and as a main branch in particular.
The recommendations are as follows:
7.1 Professional Training
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NBP staff lacks professionalism. They do not have the necessary training to do the job
efficiently and properly. Although staff colleges in all major cities, but they are not
performing well. For this purpose, these colleges have to reorganize staff and their
curriculum should be done in such a way to help employees understand the everchanging global scenario economic growth. Pakistan Banking Council should also
initiate several programs to equip staff with much needed professional training.
7.2 Delegation of Authority

Bank employees should be given a task and authority and they should be asked for
their responsibility. Pays proper attention to each job and concern bodies are
responsible to delegate authority to which they think will perform better.
7.3 Performance Appraisal
Manager should strictly monitor the performance of each staff member in particular the
activities of the branch manager. All they have to be given in accordance with their
performance and result in the form of rewards to motivate and encourage them to work
more efficiently.
7.4 To Over Come Problem of Space and Furniture

In this critical analysis, the problem is discussed. To overcome this problem, it is
suggested that a separate section should be done within the branch which should
address only the position of treasurer, salaries and pensions of federal or bank staff to
do these functions at the time of the evening. Management also have to buy more
furniture and arrange them in a way that provides maximum space and suitable
especially in the department of deposits and should not be sitting convenient place for
customers.
7.5 Need Qualified Staff
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Necessary, qualified personnel should be provided to expand the purpose of improving
the functioning of the branch. Especially a telephone operator should be appointed.
7.6 Link with the Head Quarter:
NBP is not online yet even at the age of 21-century at least 100 main branches of the
NBP has established a direct link to the quarter, head to Karachi, via Internet or Intranet.
This will make management functions and decision-making easier and convenient.
7.7 Clean Loans
Clean loan or overdraft facility clean is customer lending to consumers without any
security. These types of small loans, however, should not extend to anyone, because
once these loans are provided to people with blue eyes of management and they
become a part of bad debts.
7.8 Decreasing Administrative Expenses

Bank should lower their administrative costs. These were Rs 8 billion in 2000. That can
be done while lying off surplus pool of employees with the golden handshake scheme.
Branches that are not used much can be closed. An employee may be how to control
costs of the bank. That will yield positive results in the future.
7.9 Technological Advancement

I would like to suggest that at least all the main branches of the NBP should be fully
computerized in order to expedite the process dealing among bankers and their clients.
Each department should ensure a computer with adequate training (especially
Advances, Deposits and Foreign Exchange Department) Daily records must be entered
directly into these computers, (rather than enter the total daily transactions after banking
hours). This will not only reduce the time of the transaction, will increase accuracy, but
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will also be efficient as well. NBP should also introduce its product to credit card and
place the maximum number of ATM's in almost every city where there is a branch of
NBP.
7.10 Improper Distribution of Work
Proper distribution of work leads to success in any organization. Appropriate distribution
of work prevents the employee from above and below the work situation. So, for a
smooth distribution, a proper organization of work is hinted to be followed. During my
practice I have noticed that there was no proper division of labor in the bank. I saw that
some of the employees worked as the other ants starting sat idle here and there. So this
created a lot of the work situation for the other relaxation time. Favoritism and nepotism
should be removed. The organization should not have favoritism and nepotism policies
and their transfer and promotion should be based on merit and according to the rules
and regulations of the bank and the environment given in favor of the employee to show
their performance.
7.11 Marketing Policy

Branch should adopt different strategies of marketing and promotion strategy to
promote the bank and its products but being a nation of the bank that does not make
policy so much marketing. More important in my opinion is a personal marketing, but is
most effective of all when you think in terms of branch level. But at the whole
organization, they should organize a seminar within the bank and outside the bank.
They should represent different schemes prizing only as Habib Bank. Mahana Scheme,
Bank Al-Falah (monthly scheme earning income) and various others. They should do
more advertising in newspapers and media and through personal contacts channel.
7.12 Avoid Political interference
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Political interference is the second largest problem for the National Bank of Pakistan. So
it is very important to avoid political interference in banking operations. In order to avoid
this is the first suggestion of the bank denationalization.
7.13 Recommendations with their feasibility (economics, political, financial)
The bank should improve the quality of training of its employees and the
integrity, controls and efficiency of its systems, processes and financial
reporting.
NBP major fault is that wasnt keeping its pace with ongoing 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 in order to make it cost effective
also making its facility accordingly to modern banking. These must
continue.
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 for providing services must be easier and straight forward
not involving long procedure for simple task.

The bank should improve its pension scheme in order to avoid the
complexity.
The bank should develop software for pension disbursement.
NBP, being the only lending arm to the government for public sector
development should design, develop and deliver product and services for
economic growth.
The NBP should adopt modern banking tools and techniques. Quality
leadership, clear vision, investment in IT infrastructure and human
resource development.
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8. REFERENCES
1. http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2007.pdf
2. NBP Quarterly Report September 2007
3. http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
4. NBP Quarterly Report September 2007
5. http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
6. http://www.nbp.com.pk/Aamdani/index.htm
7. http://www.nbp.com.pk/Premium/index.htm
8. http://www.nbp.com.pk/Saibaan/index.htm
9. http://www.nbp.com.pk/advancesalary/index.htm
10. http://www.nbp.com.pk/CashnGold/index.htm
11. http://www.nbp.com.pk/StudentLoan/index.htm
12. http://www.nbp.com.pk/nbp/NBP_Treasury.jsp
13. http://www.nbp.com.pk/nbp/Treasury_Products.jsp
14. http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp
15. NBP Annual Report 2009
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Internship Report On NBP

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National bank of Pakistan

Date of Submission 16-09-2013

Name of Program Coordinator

Signature of Program Coordinator

University Of Gujrat Page 1

National bank of Pakistan

University Of Gujrat Page 2

National bank of Pakistan

Main Body of Report

2.1 Scope of Study

2.2 Aim of the Study

2.3 Objectives of the Study

3. Overview of the Organization

3.2 Nature of the Organization

3.3 Business Volume

3.4 Reward Honors & Success stories during last 5 years

3.5 Products of NBP

3.5.1 NBP Premium Amdani

3.5.2 NBP Karobar (Mera Apna Karobar)

NBP Advance Salary

3.5.6 NBP Kisan Dost

3.5.7 NBP Cash Card

National bank of Pakistan

3.5.9 NBP Pak Remit

3.6 Services of NBP

3.6.1 International Banking

3.6.2 Demand Drafts

3.6.3 Mail Transfers

3.6.4 Pay Order

3.6.5 Travelers Cheques

3.7.3 Social & Cultural

3.8 Contribution of Organization & Economic Development

4.1 Organizational Hierarchy Chart of NBP

Designation of Higher Level Office

University Of Gujrat Page 4

National bank of Pakistan

4.3 Main Offices

4.3.1 Head Office of National Bank of Pakistan

4.3.2 Domestic Branches

4.3.3 Overseas Branches

4.4 Introduction of Departments of NBP

4.4.1 Cash Department

Account Opening Department

4.4.3 Clearing Department

4.4.4 Advances Department

4.4.5 Remittances Department

4.4.6 Pension Disbursement Department

4.4.7 Computer Department

4.4.7.1 Online Branches

4.4.7.2 Evening Data Receiving Center

Data Entry Department

4.4.8 Deposit Department

4.4.9 Accounts Department

4.5 Comments on the Organizational Structure

University Of Gujrat Page 5

National bank of Pakistan

5.1 Brief Introduction of the Branch

5.2 Details of Supervisors

5.3 Weekly Time Table

5.4 Detailed Description of the Departments in which You Worked 42

5.4.2 Remittances Department

5.4.3 Kinds of Remittances

5.4.4 Clearing Department