Chapter 1

Introduction:
This chapter includes brief introduction of internship report itself. Why have I done internship have done internship in National bank of Pakistan because first it was requirement of my MB pro!ramme. nd after that have I done it to increase my knowled!e which has !ained from the books. To increase my confidence and to also !ain the e"perience how to work in practical life. This chapter also includes back!round of study that what were the inspirational factors for choosin! the or!ani#ation. The purpose of internship will also be discussed in the chapter. $cope of internship ob%ectives of internship methodolo!y throu!h which i learned will also be included in the chapter.

Background of study:
These include inspirational factors for choosin! the or!ani#ation. I choose the bank for internship because firstly I have a !reat interest in bankin! sector. $econd the banks are also playin! very important role in the development of economy. Banks are also quite an emer!in! trend in today&s era. 'espite of that I have done internship to !ain practical e"perience because you are less likely to find a %ob without e"perience. requirement of my MB pro!ram. nd the most important thin! was it was the

Purpose:
The basic purpose of doin! si" weeks internship was to !ain practical knowled!e or work e"perience. Because you must have e"perience to find a %ob in this
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competin! a!e. (urthermore I have done internship to increase my knowled!e about bankin! industry) to know about the products of bank. I also wanted to learn different functions of the bank. *ow they are performin!. I wanted to enhance my confidence + it rellay helped that how should we deal with customers. nd after

that have I done it to increase my knowled!e which has !ained from the books.

Scope:
$cope of internship is quite broad. 'urin! internship I worked in almost all departments of banks have learned a lot durin! that period. Its scope is wide because trainees are almost moved in all departments of bank durin! internship so it !ives surface knowled!e of all areas of bank. It really helps trainee in their %obs. I worked in the followin! departments.

,ash department dvances -loan department .emittance department ,learin! department

Objectives:
The ob%ectives of internship are as follows.

Main objective
To do internship for MB requirement To !ain practical e"perience

Sub objectives
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/. To enhance my knowled!e 0. To build confidence 1. To !et practical trainin! 2. To improve public dealin! 3. To !room my personality 4. To apply my knowled!e 5. To enhance my mental and physical abilities 6. To work for lon!er period of time. 7. To increase my patience

Methodology:
It includes the methods throu!h which I learned durin! internship. I learned a lot durin! my internship throu!h practical work I learned how to work throu!h discussion with senior employees. I have also learned by observin! the other employees how they are performin! their work. I learned most of the thin!s throu!h the !uidance of senior employees. Miss $hahida tabasum was very cooperative with me throu!h my trainin!. $he !uided me all the way. I learned a lot how to work on the branch&s software that was used in the branch.

Organization:
Definition of bank.

n or!ani#ation) usually a corporation) chartered by a state or federal !overnment) which does most or all of the followin!8 receives demand deposits
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and time deposits) honors instruments drawn on them) and pays interest on them9 discounts notes) makes loans) and invests in securities9 collects checks) drafts) and notes9 certifies depositor:s checks9 and issues drafts and cashier:s checks According to crowther Bank is a dealer in debts his own and of other people

According to

!"! ilbert

bank is a dealer in capital or more properly a dealer in money. *e is an intermediate party between the borrower and lender. *e borrows from one party and lends to another.

#volution of banking
The word bank is said to have been derived from the words banque or bank. This history I traced to early as 0;;/B.,.the priests in <reece used to keep money and valuables of the people in temples. These priests thus acted as financial a!ents. The ori!in of bankin! is also traced to early !oldsmiths. They used to keep stron! safes for storin! money and valuables of the people. The person who had surplus money found it safe and convient o f deposit their valuables with them. The first sta!e in the development of modern bankin! thus was the acceptin! of deposit of cash from those persons who had surplus money with them.

The !oldsmiths used to issue receipts for the money deposited with them. These receipts be!an to pass from hand to hand in settlement of transactions because people had confidence in the inte!rity and solvency of !oldsmiths. When it was found that these receipts were fully accepted in payments of debts then the
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receipts were drawn in such a way it entitled any holder to claim the specified amount from !oldsmiths. depositor who is to make the payments may now !et

the money in cash from !oldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The second sta!e in the development of bankin! thus was the issue of bank notes.

The !oldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash. They found that only a few persons presented the receipts for encashment durin! a !iven period of time. They also found that most of the money deposited with them was lyin! idle. t

the same time they found that they were bein! constantly requested for loan on !ood security. They thou!ht it profit able to lend at least some of the money deposited with them to the needy person. This proved quite a profitable business for the !oldsmiths. They instead of char!in! safe keepin! from the depositors be!an to !ive then interest on the money deposited with them. This was the third sta!e in the development of bankin!.

Su$$ary:
In this chapter I have mentioned the purpose of doin! internship. What were some inspirational factors for doin! internship= What scope the internship has for students. The ob%ectives of internship are discussed as well. (or improvin! my skills and to !ain practical e"perience. What were the methods used to learn durin! internship.

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%hapter &:
'ntroduction:
In this chapter we shall come to know the different respective sector in Pakistan. Then role of NBP in various sector of Pakistan will also be discussed. The products and services of NBP will also be discussed in this chapter. nd at the

end it includes the brief introduction of the branch in which I have done my internship.

Overall respective sector in Pakistan:

Pakistan(s Banking Sector Banking 'ndustry in Pakistan

Bankin! is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no e"emption. Banks are custodian to the assets of the !eneral masses. The bankin! sector plays a si!nificant role in a contemporary world of money and economy. It influences and facilitates many different but inte!rated economic activities like resources
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mobili#ation) poverty elimination) production and distribution of public finance.

Pakistan has a well>developed bankin! system) which consists of a wide variety of institutions ran!in! from a central bank to commercial banks and to speciali#ed a!encies to cater for special requirements of specific sectors. The country started without any worthwhile bankin! network in /725 but witnessed phenomenal !rowth in the first two decades. By /75;) it had acquired a flourishin! bankin! sector.

$BP acts as a nucleolus in the financial system of the country. Today) a central bank is the central arch of the monetary and fiscal framework in many countries of the world and its activities are essential for the proper functionin! of the economy and critical for the fiscal operations of the !overnment and Pakistan&s bankin! system is no e"emption. Will .o!er ?/770@ describe a central bank as one of the !reat inventions of the 0;th century= $tate Bank of Pakistan was established on the first of Auly /726 under the $BP order /726 as the central bank of the country.

$tate Bank of Pakistan reins the monetary and credit system in Pakistan. The $BP is performin! many useful functions like custodian of cash reserve of commercial banks) custodian of forei!n currency reserves) bank of rediscount) central clearance) settlement and transfer) and conductin! monetary policy for the stability of the entire bankin! industry of Pakistan.

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)ypes of banks: There are various kinds of banks in modern a!e. Bvery bank has different features. The main types of the banks are these8

*!%entral Bank every country has a central bank. The name of central bank in Pakistan is $tate Bank of Pakistan. The aim of this bank is not to earn profit but the re!ard the supreme interest of the country. It is responsible for re!ulatin! the volume of money and credit in the country. ll the notes are issued by this bank. It is financial adviser to the !overnment. &! %o$$ercial bank the commercial banks work on commercial basis. Their main aim is to earn profit. The banks accept deposits from the people and advance short) medium and lon! term loans to the businessmen. The commercial bank also provides a number of a!ency and utility services to the public.

+! #,change Banks: These banks deal in forei!n e"chan!e. The main aim of such banks is to buy and self forei!n currencies and facilitates the e"port and imports of !oods. In Pakistan) the ,hartered Bank and the <rindery Bank re the e"amples of e"chan!e banks. Moreover) the scheduled commercial banks also deal in forei!n e"chan!e.

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-! 'ndustrial Banks: These banks advance medium and lon! term loans for the settin! up industrial units in the country. In the western countries there are a lar!e number of industrial banks while in Pakistan has small number of institutions are en!a!ed in financin! industries.

.ole of organization in Pakistan: Role of the organization in Pakistan:

National bank of Pakistan plays a vital role in Pakistan. These roles are discussed below.

)he 'nter$ediation role:

NBP transformin! savin!s received primarily from households into Coans. (or business firms and others in order to make investments in new buildin!s) equipment and other !oods.

)he pay$ents role:

NBP carryin! out payments for !oods and services on behalf of their customers ?such as by issuin! and clearin! checks) and dispensin! currency and coin.

uarantor role:
NBP plays a role of !uarantor between ?seller and buyer@. $tandin! behind their customers to pay off customer debts when those customer are unable to pay ?such as by issuin! Catter of ,redit@.

Savings/invest$ent advisor role:

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NBP saves the amount of those people who have e"tra amount. to those persons who have fewer amounts.

nd then lend it

idin! customers in fulfillin! their

lon!>ran!e !oals for a better life by buildin!) mana!in! and protectin! savin!s.

Overall organization and functions of org in Pakistan:

It includes different products and services provided by NBP.

0BP products 0BP Advance Salary

0; month salaries in advance ?certain conditions apply@. Minimum documentation. .epayable in 3 years. No processin! char!es9 no collaterals) no !uarantees) no insurance. Mark>up char!ed at //D per annum on reducin! balance method.

0BP %ash n

old

(acility of .s./;);;; a!ainst /; <ms of !old. Mark>up /1D per annum. No ma"imum limit of cash. .epayable after one year. .oll over facility. No penalty for early repayment.

0BP 1isan 2ost

Coans available for the farmers for production) development purposes) for purchase of tractors) for installation of tube wells) for purchase of

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a!ricultural implements) micro loans) for !odown construction) for construction of fish pond) for livestock farmin!) for milk processin!) for cold stora!e) bio>!as plants etc.

Mark>up //D per annum. Coans available at the farmer&s doorsteps. !ricultural e"perts to !uide farmers. Coans available a!ainst a!ricultural passbooks) !old ornaments and paper security.

0BP S#.3'%#S: 2#MA02 2.A4)S:

If you are lookin! for a safe) speedy and reliable way to transfer money) you can now purchase NBP&s 'emand 'rafts at very reasonable rates. ny person whether an account holder of the bank or not) can purchase a 'emand 'raft from a bank branch. If you are lookin! for a safe) speedy and reliable way to transfer money) you can now purchase NBP&s 'emand 'rafts at very reasonable rates. ny person whether an account holder of the bank or not) can purchase a 'emand 'raft from a bank branch.

5#))#.S O4 %.#2'):

NBP is committed to offerin! its business customers the widest ran!e of options in the area of money transfer. If you are a commercial enterprise then our Cetter of ,redit service is %ust what you are lookin! for. With competitive rates) security)

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and ease of transaction) NBP Cetters of ,redit are the best way to do your business transactions.

PA6 O.2#.:
NBP provides another reason to transfer your money usin! our facilities. Eur pay orders are a secure and easy way to move your money from one place to another. nd) as usual) our char!es for this service are e"tremely competitive.

MA'5 ).A0S4#.S:

Move your money safely and quickly usin! NBP Mail Transfer service. also offer the most competitive rates in the market.

nd we

4O.#' 0 .#M'))A0%#S:

To facilitate its customers in the area of *ome .emittances) National Bank of Pakistan has taken a number of measures to8

Increase home remittances throu!h the bankin! system Meet the $BP directives-instructions for timely and prompt delivery of remittances to the beneficiaries

0ew 4eatures:

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The e"istin! system of home remittances has been revised-si!nificantly improved and well>trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at /3 overseas branches of the Bank besides Pakistan International Bank ?FG@ Ctd.) and Bank rabia.

l>Aa#ira) $audi

Hero Tariffs8 NBP is providin! home remittance services without any char!es. $trict monitorin! of the system is done to ensure the hi!hest possible security.

$pecial courier services are hired for e"peditious delivery of home remittances to the beneficiaries.

S7O.) )#.M '03#S)M#0)S:

NBP now offers e"cellent rates of profit on all its short term investment accounts. Whether you are lookin! to invest for 1 months or / year) NBP&s rates of profit are e"tremely attractive) alon! with the security and service only NBP can provide.

Organization office in which you are working:

I have done internship in national bank of Pakistan service industry branch <u%rat. The branch code is ;425. This branch has been providin! its services to public almost for 2; years. The staff of the branch is very cooperative and hard workin!. They !uided me all the way durin! my trainin!. This branch mainly deals in disbursin! salaries to employees of service industry. Ether than that the branch accepts lar!e deposit of service Ind because service Ind is also havin! account of their welfare funds. This branch also disburses salaries to all the !overnment employees) like teachers) policemen) + people who have
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retired from Pakistan armed forces. The branch also deals in payin! pension to old employees this can be called BEBI. These were the functions which are performed by the branch other than the normal bankin! functions.

Su$$ary:
In this overall bankin! sector of Pakistan have been discussed. What are the services that are offered by NBP= nd different functions of NBP like their products and services are also discussed. nd at end I have introduced the branch in which I have worked.

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%hapter +:
'ntroduction:
This chapter is specifically about the branch in which I have worked. It includes brief history of or!ani#ation. The communication between head office and branches. *ow many are the departments in this branch. It includes information about the staff of the branch) their qualification and e"perience) trainin! received by them) promotion system and all the thin!s which are related to branch are discussed in this chapter.

Brief history of organization: O52#0 7'S)O.6 O4 0A)'O0A5 BA01 O4 PA1'S)A0

In /727 ?$eptember@ F.G. devalued its currency) India followed suit but Pakistan did not. India said we had contravened the a!reement of keepin! both currencies at par. We said we had not done that) India had done it arbitrarily without consultin! us. En Ectober 1) /727 the two central banks were to announce the new par value of both currencies but India denied a day earlier. India also fro#e our trade > balance surplus that is still an unsettled dispute. India also withdraws the Marwari merchants who were employed annually for movement of %ute crop by financin! it. There bein! no %ute industry) prices fell sharply) forei!n banks and forei!n merchants stood aside and an a!rarian unrest was threatenin!. Two Ordinances were, therefore, issued /. 0. Aute Board Bstablishment Erdinance + NBP Erdinance dated ;6.//./727

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National Bank of Pakistan was established on November 7) /727 under the National Bank of Pakistan Erdinance /727 in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian .upee in /727. Initially the Bank was established with the ob%ective to e"tend credit to the a!riculture sector. The normal procedure of establishin! a bankin! company under the ,ompanies Caw was set aside and the Bank was established throu!h the promul!ation of an Erdinance due to the crisis situation that had developed with re!ard to financin! of AFTB trade. The Bank commenced its operations from November 0;) /727 at si" important %ute centers in the Bast Pakistan and directed its resources in financin! of %ute crop. The Bank&s Garachi and Cahore offices were subsequently opened in 'ecember /727. The nature of responsibilities of the Bank is different and unique from other banks-financial institutions. The Bank act as the a!ent to the $tate Bank of Pakistan for handlin! Provincial-(ederal <overnment .eceipts and Payments on their behalf. Mr.<hulam (arooq was chairman Aute Board and Mr. Mumta# *assan was chairman NBP. Fntil Aune) /73;) NBP remained e"clusively in %ute operations) thereafter>other commodities were also taken>up. fter that Mr. Hahid *ussain) <overnor $BP assumed additional char!e also as chairman NBP:s Board of 'irectors) and Mr.M. .Muha%ir became its first M.'. In /730 NBP replaced Imperial Bank of India. This arran!ement was ne!otiated by Mr. Mumta# *assan as ctin! <overnor of $BP. In /740 when Mr. Mumta# *assan became M' ?*e had already served NBP for /; years as its ,hairman of !overnment 'irector@) the number of branches had increased from 4 to 017 and deposits from .s.3 crore ?3; million@ to /;4 crore ?one bn + 4; mln@) profit from 1 million ?1 Cac@ to 0/ million ?0./. crore@ and the staff increased from 16; to 5;7/) as compared to /727>3;. In 'ec. /744 its 4;;th branch was opened raisin! the deposits to 0.1/ bn. and staff to /2) 741. Fp to /743) the shareholders had received 003D of their ori!inal investment. Now it has more than 0/327 employees /315 branches and .s.0;6061 million deposits. The Bank has also played an important role in financin! the country&s !rowin! trade) which has e"pended throu!h the years as diversification took place. Today
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the Bank finances import-e"port business to the tune of .s.40./5billion) whereas in /74; financin! under this head was only .s./.32billion. The field is bein! de>layered to improve customer services and enable faster decision makin!. s a result of this de>layerin! #ones have been eliminated and the numbers of re!ions have been increased. Er!ani#ational hierarchy at the re!ional level has been restructured and operational and business activities have been completely separated. This separation will improve communication) decision makin! and promote teamwork. (or the third consecutive year) the Bank is reco!ni#ed as the best Bank in Pakistan for the year 0;;2 by the presti!ious periodical. IThe BankerJ FG ?a subsidiary of (inancial Times <roup@

Were expanding horizons, reaching out, Being there and bringing something for everyone. After all, we are he !ations Ban"#.

3'S'O0

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To be the pre>eminent financial institution in Pakistan and chieve market reco!nition both in the quality and delivery of service as well as the ran!e of product offerin!.

Mission state$ent:

To be reco!ni#ed in the market place by Institutionali#in! a

Merit + performance culture) ,reatin! a powerful +

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'istinctive brand identity) achievin! top>tier financial

Performance) and doptin! + livin! out our core values

%orporate infor$ation:

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O. A0'8A)'O0A5 %7A.) O4 0A)'O0A5 BA01 O4 PA1'S)A0

2#S' 0A)'O0S 4O 7' 7#. 5#3#5 O44'%#: P.#S'2#0)

S#0'O. #9#%:)'3# 3'%# P.#S'2#0) .A2# &&

#9#%:)'3# 3'%# P.#S'2#0) .A2# &*

3'%# P.#S'2#0) .A2# &;

ASS'S)A0) 3'%# P.#S'2#0) .A2# *<

.A2# ' O44'%#. .A2# *=

.A2# '' O44'%#. .A2# *>

.A2# ''' O44'%#. ? .A2# *@A

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.elationship of head office to the branch offices8

,ommunication channels between head office and branch offices are8 Mail Post Telephone Blectronic communication Whenever any decision is to be made these are made by president of National bank of Pakistan with the consultation of !roup chief. ny policy which is to be communicated to different branches it is done normally done throu!h mail or by post. Blectronic communication is also used to some e"tent in NBP. 'ecision or any information is circulated to all the branches in Pakistan throu!h mail or by post. 'ifferent instructions are also !iven to branch mana!ers by telephone.

0u$ber of depart$ents: 2#PA.)M#0)S A) 0BP

The 'epartments functionin! at NBP as briefed by its concerned officers durin! the internship are8

*! <eneral Bankin! 'epartment &! -! ccount 'epartment. dvances 'epartment. +! .emittance 'epartment.

#0#.A5 BA01'0
<eneral bankin! section consists of followin! sub sections8
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 Inquiry section Inland .emittances 'eposits ,ash 'epartment Ftility Bills

'0B:'.6 S#%)'O0

ccount openin! Issuin! ,heque Book Term 'eposits

A%%O:0) OP#0'0
Epenin! of a new account is like a contract between the bank) NBP and customer which is !uided by the people under Inquiry section. The preliminary function of this section is to open various types of accounts) by allottin! them their ccount numbers.

)6P#S O4 A%%O:0)S
(ollowin! types of accounts are opened

P5S A%%O:0) / P5S SA3'0

A%%O:0)

These accounts are opened mainly by those customers whose bankin! transactions are not frequent and numerous. Cower and middle income !roups) small traders) professionals) farmers and other salaried classes usually make such deposits. (unds can be deposited frequently throu!h cash) cheques) demand drafts) pay orders) tele!raphic transfers and other such instruments. Internship report on NBP service Ind service branch Page 22

The ob%ective of the Bank is to keep such deposits and earn ma"imum profit by investin! the proceeds of the deposits) to help small savers) to fulfill their business needs and to provide assistance in upliftin! the economy.

%:..#0) A%%O:0)

These are running accounts opened by the individuals .They deposits and withdrawals frequently cheques) demand drafts) pay orders) etc drawn on the branch. 'epositors deposit their money and the Bank by acceptin! these deposits incurs the obli!ation of payin! all types of orders to the e"tent of the credit balance in the depositor&s account. These deposits represent current liabilities of the Bank. $o the bank has to keep sufficient funds in its hand to meet the requirements of the depositors of these deposits.

SA5'#0) 4#A):.#S
/. The minimum requirement for openin! the account is .s. 0;; 0. There is no limit for ma"imum deposit. 1. No limit of deposits and withdrawals is definite. 2. The deposits can be lod!ed in both local as well as forei!n currencies. 3. The deposits can be made by8 Individuals $ole proprietary concern Partnership firm $ocieties and clubs Institutions

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4. The bank collects cheques) demand drafts) etc. and pay all the bills) cheques) pay orders) etc.) on the behalf of its depositors. 5. The bank will not pay any sort of profit to the account holder. 6. fter time of openin! the account in the name of an individual. The bank will record the name and address of the ne"t of the kin of the account holder as disclosed by him) who can be contacted in the event if account remains inactive for more than three years. 7. The bank would not require any prior permission from the account holder for debitin! his-her account for char!in! e"penses) fees) commission) mark>up etc arisin! out of any dealin! or services with the branch. /;. The account holder is e"pected to maintain a minimum balance of .s. 3;; in his account or whatever the minimum amount is prescribed for the purpose. //. The banks now a day also provide the TM card to account holder for 02 hour cash services at annual char!es. /0. ccount statements are provided to the depositors mostly at monthly-quarterly intervals or whenever is required by him.

%7#B:# BOO1 'SS:A0%#

fter fulfillment of all requirements for openin! an account letter of thanks are issued to both individual and introducer. ,heque book is issued at the time when individual came alon! with that letter. ccount number that is also mentioned in the letter is then !et stamped on each and every flip of the cheque book.

)#.M 2#POS')S
'$, and $$, are the certificates which are issued by the bank under the condition that they will not be payable on demand) but will be payable on a fi"ed Internship report on NBP service Ind service branch Page 24

or predetermined future time or date so they are commonly known as term deposits.

2#POS') S#%)'O0
This section is responsible for collectin! cheques which are to paid within city or outside of city for the purpose of clearin! .This clearin! process !et completed with in 1 days

%AS7 2#PA.)M#0)
,ash department is responsible for daily cash receipts and cash payments of cash to !eneral public and other services like8 /. ,ash Payments a. ,b. PC$?$avin!@ 0. Pri#e Bond Payments 1. 'emand Notice ,ollection 2. ,ash .eceipts

:)'5')6 B'55S S#%)'O0

With the aim of e"tendin! this service to the wider ran!e of customers) the number of NBP branches collectin! utility bills ?!as) electricity) telephone@ has been increased to a lar!e number of cities. $o that the public w have easily access without !ettin! much trouble.

.#M'))A0%# 2#PA.)M#0)
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(unction of this department is to help in transferrin! of funds from one place to another. Transfer of funds from forei!n country to Pakistan .i.e. all the payments send from outside country to Pakistan or Transfer of funds from Pakistan to forei!n country i.e. all the payments send to outside country Pakistan throu!h NBP. .emittance department here consists of two ma%or sections8 Cocal .emittance (orei!n .emittance

5ocal .e$ittance
The term inland remittance means transfer of funds from one branch to another with in the country thou!h followin! bankin! instruments8

'emand 'raft Tele!raph transfer Mail transfer Pay Erder Inland Bills !ency a!reement from other banks.

4oreign .e$ittance
The bank provides the facilities of forei!n remittance to the domestic residential and forei!ners to send money from one country to another.

)ypes of pay$ents
,ommercial Payments Private payment-(amily .emittances

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A23A0%#S 2#PA.)M#0)
dvances 'epartment is lendin! loans to individuals ,ompanies) ,orporations etc. for different purposes. It provides loans for a!ricultural and industrial development. Its provides these types of finances8

.unnin! (inance. 'emand (inance.

%learing depart$ent:
,learin! department clears the cheques of the customers within !u%rat and outside !u%rat as well. The cheques are sent to respective banks on which they are drawn. The clearin! house is situated in <u%ranwala. .epresentatives of all the banks !ather there to complete the transaction. This process is completed within 1 days. The cheques which are drawn outside of !u%rat are cleared within a week.

Offices or field offices:

NBP was incorporated in Pakistan in /727. It has a well>established domestic network comprisin! more than /)/;; branches and 07 re!ional centers coverin! the entire country. .ecovery offices: Ene recovery officer is appointed in every branch! The duty of the recovery officer is to make sure the timely payments of installments by the customer. If any customer has taken a loan the recovery officer pursuit the customer to make the payments of the installments. If the customer does not do so first he contacts the customer on telephone and if even than he does not make the payments recovery
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officer personally !oes to him and ask for the payments. These are the duties of recovery officer.

%urrent staff:
There are 7 employees includin! security !uards are workin! in NBP service industry branch !u%rat.

%urrent staff of branch according to Cualification and e,perience: 0a$e

(arrah khursheed Naveed ahmed slam iqbal $hahida tabasum dnan ahmed f#al ahmed

Bualification
M ( ( MB B ,EM Matric

#,perience
/; /0 1; 2 0 2

)raining received by no of e$ployees8

*ead office of NBP normally arran!es the trainin! pro!ramme for improvement of their employees. The trainin! pro!rammes are arran!ed in almost every city of Pakistan. In !u%rat trainin! pro!ramme is arran!ed in re!ional head quarters of NBP. $ome times employees have to !o to Garachi) Cahore) and <u%ranwala for attendin! the workshops. The employees are told to GK, that is to know your customer. It improves their skills in bankin! sector.

"ork load8
ll the employees are bound to perform their duties from 7am to 3pm. The timin! of (riday and $aturday is from 7am to /0.1;pm. work load is divided equally to all the employees of the branch.
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Salary structure: 0AM#

(arrah khursheed Naveed ahmed slam iqbal $hahida tabasum dnan ahmed f#al ahmed

SA5A.6
1;);;; 02);;; 53);;; /0)3;; 3)3;; //);;;

Pro$otion syste$:
Promotion system is arran!ed by the head office of National bank of Pakistan. It is based on the e"perience and qualification of the employees. Promotion of officer !rades is normally made after three years. The employees who are on contract they are confirmed after completin! a specific period. ll the procedure is carried throu!h performance appraisal. *ead office normally asks for the performance report from the branch mana!ers of the employees) who are !oin! to be permanent. <enerally) the aims of a scheme are8 <ive feedback on performance to employees. Identify employee trainin! needs. 'ocument criteria used to allocate or!ani#ational rewards. (orm a basis for personnel decisions8 salary increases) promotions) disciplinary actions) etc. Provide the opportunity for or!ani#ational dia!nosis and development. (acilitate communication between employee and administrator.

'ncentives and $otivation:

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National bank of Pakistan !ives different types of incentives to motivate employees. These incentives includes Welfare fund Bonuses nnual bonuses

,ash awards Bid bonuses NBP !ives funds and bonuses on the basis of performance of the workers.

.esponsibilities or duties perfor$ed:

(arrah khursheed8 Naveed hmed8 slam iqbal8 $hahida tabasum8 dnan hmed8 f#al hmed8 To monitor the activities of the branch employees To record the entry of cheque entry and to pass the cheques To pay the cash to customers and utility bill collection $he deals in advances department pension payment to customers ,ollection of passport fee

%ritical analysis of branch:

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The service Ind branch is doin! quite well but there are some areas where the improvement is required. Aust like behaviour with customer) use of new technolo!y better IT trainin!.

%o$$unication syste$:
,ommunication in the branch is normally down ward. ny decision is made by mana!er and then communicated to all the staff of the branch. Ether than that communication amon! employees is done throu!h face to face or some times throu!h telephone as well.

7iring syste$:
*irin! system of NBP is mainly responsibility of head office. Whenever there the %obs are offered these are advertised on website of NBP. The candidates are asked to submit their ,L or their documents to the head office. If the candidates meet the criteria or requirement of the %obs then they are asked to come for the interview. This process is completely based on merit.

Morale of staff:
Morale of service Ind branch employees is very !ood. They are motivated enou!h to provide the better service to their customer. They care their customer and try their best to provide !ood and quality services. Bmployees are awarded by bonuses to keep the motivation level hi!h.

Physical facilities:

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Physical facilities at service Ind branch are quite !ood. There is bi! hall customer don&t have any problem while waitin! for their turn. (ans and three split units are erected there to control the temperature in the hot summer. Water cooler is also available for cold water. There is a separate room for branch mana!er Mrs.(arrah khursheed and different sections for other employees.

Perfor$ance:
'n ter$s of Cuality ?through custo$er satisfactionA The performance of service Ind branch in terms of customer satisfaction is satisfactory. lthou!h the customers are not fully satisfied with the services provided to them) but this is mainly due to not havin! online system. But still this branch is providin! services as much as they can. 'n ter$s of Cuality ?through nu$ber of accountsA lthou!h the services are not up to date but the branch still have satisfactory bud!et. Because this branch has the lar!e accounts of service Ind) BEBI and <overnment institutions accounts. $o numbers of accounts are on the increasin! side.

5atest budget review:

The bud!et is made by the head office of every branch. The char!es of the bank include salary of the employees) stationary char!es. The revenue of the branch is !enerated throu!h advances) loans) different accounts) and other types of different services provided by the branch.

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Su$$aries:
In this chapter I have mentioned in detail about the branch. Workin! of the branch) salary structure) how salaries are disbursed to employees. What are the different incentives and awards are !iven to them to keep them motivated. I have also mentioned the performance of the branch in terms of customer satisfaction and in terms of number of accounts. These were the main points which are discussed in this chapter.

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%hapter 'ntroduction:
In this chapter I would have a brief look at the policies of National bank of Pakistan which are made by the head office of NBP. Then what are the strate!ies which are made to achieve lon! terms ob%ectives and !oals. The success of strate!y will also be discussed later in the chapter.

Policies:
Policies are the written or formal !uidelines for any work which is to be performed. These are the rules and re!ulations of the !ame. 'ifferent policies of NBP are as follows.

PO5'%6 4O.MA)'O0:
(or policy formation) directors meet once a month. In the meetin! policies of the last month are usually discussed. If there is a need of review) then the directors have he ri!ht to do that) but collectively.

MA0A #M#0) O4 BA01:

In this the board discussion about the mana!ement of all the branches) performance of the mana!ers of each branch is discussed individually. En the basis of the performance) it is decided whether a branch mana!er deserves a reward of his performance or he must be punished because of his ne!li!ence. 'ifferent departments in The NBP perform different functions. There are departments like shares9 customer) credit and they have their respective functions.

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dministration department only interferes at the time where there is a problem about the staff. In the branches) every mana!er has a direct link with his sub> ordinates. The branch mana!er assi!ns employees of the bank a particular %ob. Fsually there is %ob rotation is avoidin! the difficulties at the time of absence of any employee. The Board of directors or hi!her mana!ement sets !oals to the mana!ers or middle and lower level of mana!ement. The task specifies not only what is to be done) but also how it is to be done and e"act time allowed of doin! it. The board consistin! of ten directors and a mana!in! director interviews mana!ers and upper level mana!ement.

S)A)#M#0) O4 #)7'%S A02 B:S'0#SS P.A%)'%#S:

$tatement of ethics and business practices is prepared and circulated annually by the board of directors in order to establish a standard of conduct for directors and employees) which statement shall be si!ned by each director and employee in acknowled!ement of his understandin! and acceptance of standard of conduct.

Privacy policy:
Privacy of customer personal information Is utmost important for national bank of Pakistan. They try very hard to keep the information as safe as they can.

Strategies:
NBP has formulated certain sets of strate!ies to enable it to achieve its !oals and ob%ectives. These strate!ies are mentioned below8 /. In order to achieve its !oals of creatin! a sound base and presence of utomated

efficient modern bankin! system) NBP has started operation of other cities of Pakistan. 0.

Teller Machines in all the ma%or cities like Garachi) Cahore) Multan and

NBP is committed to buildin! lon!>lastin! relationships throu!h an

assertion to service e"cellence and providin! innovative products to meet the

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chan!in! needs services. 1.

of

our

valued

customers.

lthou!h still in its infancy)

compared to the e"alted bankin! standards) but NBP is tryin! to improve the

The main focus is buildin! relationships and bein! known by the do business. Mana!ement reco!ni#es that a bankin! relationship

way they

requires compatibility) communication) and cooperation and that each customer deserves nothin! less than full attention and available resources to meet their financial ob%ectives. 2. ,ore value and corporate culture is based on the belief that superior

personali#ed service is the most important product. Bank is in the process of !ettin! to know customers by name and understand their business and personal financial needs. 3. The NBP team comprises of some of the most hi!hly skilled and

professional financial e"perts in bankin! industry. Mana!ers) lenders and trust advisors offer the unique perspective of knowin! and understandin! in the local economy. The Mana!ement focuses its attention on makin! informed and feasible economic decisions) brin!in! better returns and more profitability for investors and customers. 4. Geepin! in view the unrest amon! the Islamic ,ommunity on the Interest

Bearin! Bankin! the NBP is in the process of tar!et marketin! and !ives its full attention to this se!ment of a lar!e population over the world.

Successes:
National bank of Pakistan has !ained quite success after implementin! the strate!ies. fter the use of new technolo!y they have improved the customer relation and satisfaction. The number of accounts and bud!ets are on the increasin! side.

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Su$$ary:
In this chapter policies and strate!ies of national bank of Pakistan have been discussed. fter implementin! the strate!ies the success is also been discussed.

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%hapter D
This chapter includes $WET and PB$T analysis of National bank of Pakistan.

S"O) analysis of 0BP:

$WET nalysis is a strate!ic plannin! method used to evaluate the $tren!ths)

Weaknesses) Epportunities) and Threats involved in a pro%ect or in a business venture. It involves specifyin! the ob%ective of the business venture or pro%ect and identifyin! the internal and e"ternal factors that are favorable and unfavorable to achievin! that ob%ective. Strengths: ob%ective. "eaknesses: the ob%ective. Opportunities: B"ternal conditions that is helpful to achievin! the ob%ective. )hreats: B"ternal conditions which could do dama!e to the business:s performance. ttributes of the or!ani#ation that is harmful to achievin! ttributes of the or!ani#ation that is helpful to achievin! the

S).#0 )7S:
dvance salary product8 It e"ists in the list of top /; banks in the $I . It has the hi!hest profit amon! the lar!est banks of the $I . Page 38

Internship report on NBP service Ind service branch

Its paid>up capital is very hi!h Lery less uncertainty because of a <ovt. bank *i!h confidence due to hi!her capital investment. C, ?letter of credit@ is acceptable all over the world. ,hest branches can supply cash on the behalf of state bank. ,hest loans can be used for limited time $take holder is <ovt. of Pakistan. It holds the <ovt. treasury. The bi!!est customer of NBP is <ovt. of Pakistan. Work as correspondin! of $G .I bank Provide *i!h packa!es to employees. Provide hi!h staff benefits. .ecruitment occurs after every year. MTE&s selection is planned till 0;/;.

"#A10#SS#S:
The Ma%or problem with NBP is its ima!e as it is a <ovt. bank so the vision of the customer is not positive about it. People think it will not provide them satisfactory services. In many branches mana!ement is not up to date. In small area&s branches employees have less education. ward and promotion policies are not implemented in all branches.

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There is no concept of %ob rotation Bmployees have low coordination level amon! each other.

OPPO.):0')'#S:
dvance salary for employees Bmployee benefits Pensions ward for employee performance Promotions ,orporate plannin! learnin!.

)7.#A)S:
Turn out of employee Aob security and $tru!!lers t a time do no. of %obs due to competitor. NBP have to do those %obs which have no loss and no profit because of their competition ,ustomer dissatisfaction $low actions on complains Political environment.

Pest analysis

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Pest analysis includes political) economical) social and cultural + technolo!ical analysis of national bank of Pakistan. Political M M M M M Privati#ation and dere!ulation policy Impact of subsidi#ed credit affectin! +N,B&s Bmployment practices) unions association Political interference and harassment Incidents of hi!h ta"ation in bankin! industry

#cono$ical M M M M ,onstraints in mobili#ation of public savin! because of inflation $taff cost Eperatin! cost Bad debts

Social Ecultural M M M M Inadequate human resources ,ultural constraints to savin! 'efaulter&s lobby 'eclin! education + work ethics

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M M

Inadequate accountability dequate empowerment

)echnological M M M M M Inadequate communication infrastructure Inadequate computer facilities Inadequate IT trainin! Lery less computer knowled!e Traditional methods are used in branch

.#%OMM#02A)'O0S:

/.

This is a computer era. With the use of computer we can increase our efficiency. N.B.P. should computeri#e all its branches. By the use of computer properly these branches can increase there workin! efficiency.

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0.

N.B.P. as public service oriented institution has to create business opportunities for themselves. Now a day there is a competition between the banks.

1. 2.

,entral

sian .epublics ?, .s@ have !reat opportunities of new business

so N.B.P should open new branches in these .epublic. Model Banks like ,ity Bank) M.,.B. is usin! media very effectively to increase the business of banks. $o N.B.P should use electronic media for its business developments. 3. 4. 5. 6. The interference of union in bankin! business should be minimi#ed as it decreases the workin! efficiency of the employee as well as the bank. The workin! of the $ervice industry branch is satisfactory but still these workin! efficiencies are far from the standard of modern bankin! system. The bank should finance its loans in those pro%ects that are meetin! the required standard and should avoid the political pressure. The bank should brin! forward the new talent as fresh knowled!e and education is considered very important to increase the efficiency and production. 7. /;. //. There is a need to make the outlook situations of branches in the manners that can compete with the other modern banks in the bankin! market. Geepin! in view the hard work by the staff members at all levels of mana!ement) staff should be !iven bonus and increment every year. ,redit cards are issued by the different banks like M,B) place for this type of scheme in this bank. /0. /1. /2. $eparate desk or counter should be established in every branch to provide the information as required by the clients. The environment of the offices should be comfortable so that the client and staff must feel comfort durin! business in bank. There are some clients havin! sound and successful plan but without financially sound and providin! securities bank should firms such policies that may solve this problem.
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BP and ,iti

Bank etc. but NBP don&t issued this type of finance scheme) there is a

/3.

I observed that many branches of NBP are over crowded. Cess people can work which e"tra people perform. Number of employees should decrease or new branches should opens for the ad%ustment of these e"tra employees.

/4.

Most of the bank employees are stickin! to one seat only) with the result that they become master of one particular %ob and loose their !rip on other bankin! operations. In my opinion each employee should have re!ular %ob chan!e.

/5.

.efresher courses for staff are most important in my international or!ani#ation. ll the employees should have their courses accordin! to their requirement.

/6.

Bvery year some of the employees should be sent for trainin! to other countries and employees from other countries should be brou!ht here.

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.eferences:
www!google!co$ www!soople!co$ www!nbp!co$!pk www!bing!co$ www!yahoo!co$

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