National Bank Internship Report

NBP

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In order to be able to cope with the changing environment it is necessary to have some practical experience. As the students o Business Administration we have to pass through a series o various managerial techni!ues. "uring this practical course we are provided with an opportunity to learn that how the theoretical #nowledge can be implemented in practical grounds. I was selected to do my internship in National Ban# o Pa#istan shahra$e$ha%ara branch &aripur. I wor#ed there or six months ' it gave me a greater practical #nowledge about the operations o a ban#. In the ollowing pages I have narrated my experience( observations ' all the wor#ing activities which I observed during my six wee# internship at NA)I*NA+ BAN, *- PA,I.)AN .&A&/A$0$&A1A/A B/AN2& &A/IP3/.

)his report is dedicated to my Parents without whose e orts and prayers I would have been nothing. 4y parents who ever wished to see me as a success ul man in every ield o my li e. 4ay they live long( praying or me. (Amin)

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NBP

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In the name o Allah the praiseworthy( the passionate whose blessing made it possible to complete this tas#. <ust with any endeavor( this report is the result o great e ort. By the grace o =od and the utmost e orts rom me( I am able to accomplish my internship report well in time. At this moment I must pay special than#s to my parents and my riends. I could not have produced it without patience( prayers o parents( and active assistance o my riends. )hey all deserve appreciation. )here are ew respectable persons who helped me to write this report. I want to ac#nowledge their inspiration. No doubt I am than# ul to all o them. Particularly I am indebted to> .hau#at Ali( ,amran Ayub( and Awais Arbi. I am also indebted to all the employees o National Ban# o Pa#istan shahra$e$ha%ara branch haripur. .pecial than#s to ?4/. Asim ,han@ Assistant o National Ban# o Pa#istan shahra$e$ha%ara branch haripur. It is a matter o great satis action or me that without their active support I could not have succeeded in materiali%ing this Internship report e ective and e iciently.

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NBP

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)he main purpose o this internship report is to provide the comprehensive overview to the readers( about the organi%ation i.e. National Ban# o Pa#istan. I have given a comprehensive overview o the branch o the *rgani%ation and described the Nature o the organi%ation( its business volume( product lines and 2ompetitors. I have given a detailed description o the proBect assigned to me during my internship period. I have also explained the management unctions li#e planning( organi%ing( leading and controlling with respect to the organi%ation. I have also done a .CA) analysis o the organi%ation in the business sector. )he organi%ation hierarchy chart is also provided in this internship report. In the end I have made a conclusion about the organi%ation and provide recommendations or the improvement. )he re erences and the sources used are also provided in the end o this internship report. Assessment o the needs and wants o the customers is an ongoing process at National Ban# o Pa#istan( which helps to continually develop new products and services. )o continuously o er courteous( pro essional and advanced ban#ing solutions( the team o ban# has recently been reBuvenated by going though training programs with a ocus on in ormation technology. )o ma#e their ban#ing solutions become accessible to more and more people( they have embar#ed upon a rapid expansion program( aiming to provide a networ#ing that ma#es the services available to any o their customers in all the maBor urban centers o Pa#istan$ with a view to go international in the near uture. Cith their #ey indicators o progress already soaring to new heights( the ban# is committed to dedicate all its energies( resources and time to bring higher value and satis action to their customers( employees and shareholders.

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NBP

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)he graph o ban# is going up and up every year. )he ratio o pro it is increasing at good percentage. )he ban# is serving the people at high level o standard by going according to the whishes o the customers.

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NBP

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National Bank of Pakistan ------------------------------------------------------------08  Introduction $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$7;  Branch Networ# $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$57  4ission .tatement $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$58  6ision statement $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5E  2ore values $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 5E Over view of NBP -------------------------------------------------------------------------16  &istory * NBP $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5;  Business volume $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 59  Product o NBP$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$A7  .ervices o NBP $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$AD  2ompetitors $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$A: Corporate Philosophy at NBP ----------------------------------------------------------30 Functions of NBP as epresentative of !tate Bank of Pakistan -----------------31 "#portant facts a$out NBP--------------------------------------------------------------3% "ntro&uction of $usiness sector of NBP -----------------------------------------------33 "ntro&uction of Branch '(here " &i& #y internship) ------------------------------36  NBP .hahra$e$ha%ara sta list (' duties) $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$D;
  

"uration o Internship $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$D: )as#s per ormed during internship $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$D: Photocopy o internship certi icate provide by NBP$$$$$$$$$$$$$$$$$$$$8F

*ana+e#ent Functions ------------------------------------------------ ------------------,8 Plannin+ -----------------------------------------------------------------------------------,8  "ecision 4a#ing Process$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$89  2urrent .trategies $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E7  *bBectives o NBP $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E5 E 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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Or+ani-in+ --------------------------------------------------------------------------------- .3  -eatures o NBPGs *rgani%ational .tructure $$$$$$$$$$$$$$$$$$$$$$$$$$$$ED  4ain * ice$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E8  No. o 0mployees $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E8  *rgani%ational .tructure $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E8  4anagement &ierarchy $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$EE  *rgani%ation 2harts $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$E;  )ypes o Branches o NBP $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;7  "ivisions o NBP $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;5  "epartmentali%ation $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;8  .pan o control $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;E  2entrali%ation or "ecentrali%ation $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;;  -ormali%ation $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;F  Cor# .peciali%ation $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;9  )echnology 4anagement $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$;: /ea&in+ -------------------------------------------------------------------------------------60  +eadership at NBP$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$F7 Controllin+ --------------------------------------------------------------------------------11  2ontrolling .tandards$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$F5  Per ormance Appraisal .ystem $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$FD  Analysis o &/ "epartment $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$F8 *ana+e#ent Functions at NBP !hahra-e-ha-ara B 2NC3--------------------1. !(O4 2nalysis ------------------------------------------------------------------------- 16 Conclusions ------------------------------------------------------------------------------ 80 ; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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eco##en&ations ---------------------------------------------------------------------- 80 2nne5es ----------------------------------------------------------------------------------- 8,

National Bank of Pakistan6 "ntro&uction

National Ban# o Pa#istan (the Ban#) was established on November :( 5:8: under the National Ban# o Pa#istan *rdinance( 5:8:. Initially the Ban# was established with the obBective to extend credit to the agriculture sector. )he National Ban# o Pa#istan has its head!uarters in ,arachi( Pa#istan. It has now over 5(ADA branches through out Pa#istan and AD oversees branches. It has total assets o /s. 3. H57(E77 (44) in year A77;. )he ban# provides both commercial and public sector ban#ing services. National Ban# o Pa#istan maintains its position as Pa#istanIs premier ban# determined to set higher standards o achievements. It is the maBor business partner or the =overnment o Pa#istan with special emphasis on ostering Pa#istanIs economic growth through aggressive and balanced lending policies( technologically oriented products and services o ered through its large networ# o branches locally( internationally and representative o ices. As o 4arch( A77E( its 2hairman and President is .yed Ali /a%a. National Ban# o Pa#istan was established as a result o deadloc# with India and the devaluation o the Indian rupee where Pa#istan much to India and British consternation did not ollow suit. )he obBective o establishing the ban# was to provide much needed inancing to the agricultural sector( particularly to acilitate the badly hit Bute trade. )he F 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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ban# then went on to become the sole agent o the .tate Ban# o Pa#istan or handling provincial and ederal government receipts and payments.

*2N278*8N4 An 0xecutive Board composed o six .enior 0xecutives o the Ban# and the President who is also the 2hie 0xecutive supervises the a airs and business o the Ban#. C2P"42/ )he authori%ed capital o the Ban# is /s.E777 million divided into 577 million ordinary shares o /s.57 each. A ter nationali%ation( all the shares held by persons other than the -ederal =overnment or 2orporations i.e.( owned and controlled by the -ederal =overnment was considered as trans erred and vested in the =overnment. )he paid up capital o National Ban# is E:79.:AF million rupees. )his is 58 percent o the combined paid up capital o the 59 listed commercial ban#s amounting to /s.8.AFA billion. .uch a large paid up capital places National Ban# at the number one slot in the entire inancial sector. 4uslim 2ommercial Ban# +imited and -aysal Ban# +imited are placed second and third respectively on basis o paid up capital. N"+2$I-I2 Ban# +imited is last on the list with a paid up capital o /s.5AA:.785 million. )he .tate Ban# o Pa#istan has instructed all commercial ban#s to switch to only one lin#( which would enhance the availability o numbers o A)4 to cardholders by many times. By the end o <une A778( NBP planned to have a minimum F7 new A)4s at various business centers. Cith the current igures at D7( NBP has allen ar short o its target. Interestingly( 5; o the A)4Gs are in Islamabad along( thatGs more than the number in the rest o the country put together. In recognition o NBPs excellent per ormance( the ban# was awarded the prestigious ?Ban# o the Jear@ award in Pa#istan by the ?Ban#er@ +ondon in A778. ?0uro money@ 9 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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maga%ine( a leading Bournal in its latest issue o 4arch A77E has listed NBP among the top 577 ban#s in Asia( being the only Pa#istani ban#. Ban#s are ma#ing large pro its these days due to easy and cheap money supply. )his year NBPGs average mar# upKinterest expense when compared to )otal 4ar# upKInterest income was only D5L as compared to DEL last year. )he small depositors deserve to be ta#en better care by commercial ban#s particularly by the National ban# o Pa#istan( a national institution. )his year ban#ing and insurance have grown at the rate o A5.F;L which is the record level o increase achieved in the history o Pa#istan. Ban#s accumulated resh deposits o /s.DAFbn. in 55 months (-J A77E) to /s.ADA7bn rom /s.5::D bn. "ue to increased economic activity in the country. )he National Ban# o Pa#istan has extended short term inancing acilities o /s.DF7m to 2hina International Cater and 0lectric 2orporation or 4angla "am raising proBect. )he dam will be raised D7$ eet and the proBect is expected to be completed by A77F. NBP signed an agreement with Pioneer 2ement to acilitate the 2ement 2ompany to underta#e expansion o 8D77 tons per day capacity on the mar# up rate o ,ibor MAL. )he agreement provides or the issuance o 55.E: mn. .hares to NBP at /s.AD per share in discharge o one o outstanding liabilities.

Branch Network
Cith the geographical development o its branches( the Ban# has been able to extend its services to a much larger number o Pa#istanis all over the country. )oday it has more than 9.E million accounts. Ban# maintains its presence in all the maBor inancial centers o the world through its 5E overseas branches and E representative o ices. * these( three representative o ices have recently been set up at )ash#ent (3%be#istan)( Ba#u (A%erbaiBan) and Almaty (,a%a#hstan) to ta#e advantage o the emerging

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NBP

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opportunities in 2I. countries. Ban#Gs role globally is well assisted by its networ# o correspondent ban#s located strategically in Asia( America( 0urope and A rica. Apart rom having a vast branch networ#( Ban# is at the ore ront in the ac!uisition and application o new technologies in every aspect o its ban#ing acilities. It has ac!uired leased telephone lines or on$line ban#ing. )he Ban# has 5A /egional 2omputer 2enters to cover various on$line and batch system re!uirements o branches and controlling

Oversea Branches

Domestic Branches

15 Overseas Branches
4 Represative Offices 1 Subsidiary 1 Joint Venture

29 Re iona! Offices

1"1#9 Branches
4 Subsidiaries

Branch Network6 NBP has an extensive domestic branch networ# o over 5E77 branches located all over Pa#istan. )he Ban# also has a presence in A8 international locations including the 3.A( 3nited ,ingdom( 0urope and the -ar 0ast.

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NBP

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B 2NC38! 2// O98 438 CO:N4 ;

&ere is a list o the ban#s locations in Pa#istan accordance to each province or territoryN 55 6irtual 3niversity * Pa#istan bc7878779:;

NBP
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.indh> "adu( .anghar( &yderabad( <acobabad( .hi#arpur( ,arachi( +ar#ana( 4irpur#has( Badin( Nawabshah( .u##ur( ,hairpur( )harpar#ar. PunBab> Bahawalpur( ".=. ,han( /J,han( -aisalabad( =uBranwala( .ial#ot( Narowal( <hang( <helum( =uBrat( 2ha#wal( "arya ,han ( Bha##ar( +ahore( 4ultan( 4urree( Attoc#( =ilgit( /awalpindi( .ahiwal( .argodha( .hei#hupura.

•

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NC-P> Abbottabad( 4ansehra( Bannu( ".I. ,han( ,ohat( 4ingora( 4ardan( Peshawar. Baluchistan> Ouetta( A%ad ,ashmir> 4u%a arabad( 4irpur.

• •

Overseas Branches6 • • • • • • • • • • • • • • • • • • Paris -ran# urt New Jor# Cashington ".2. )o#yo *sa#a &ong ,ong ,owloon .eoul Bahrain "ha#a 2hittagong 2airo Ashgabat Bish#e# Ba#u ,abul <alalabad 5A 6irtual 3niversity * Pa#istan bc7878779:;

NBP • • • • • BeiBing )ash#ent 2hicago *ntario +ondon

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*ission !tate#ent
“To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top tier financial performance, and Adopting & living out our values!

National Ban# o Pa#istan will aspire to the values that ma#e NBP truly the NationGs ban#> By
5. A. D. 8. E.

Institutionali%ing a merit and per ormance based culture. 2reating a distinctive brand identity by providing the highest standard o service. Adapting the best international management practices. 4aximi%ing sta#eholderGs value. "ischarging our responsibility as a good corporate 2iti%en o Pa#istan and in countries where we operate.

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NBP

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9ision !tate#ent

)o be the pre$eminent inancial institution in Pa#istan and achieve mar#et recognition both in the !uality and delivery o service as well as the range o product o ering.

Core 9alues
 &ighest standards o integrity  Institutionali%ing team wor# and per ormance culture  0xcellence in service  Advancement o s#ills or tomorrowGs challenges  Awareness o social and community responsibility  6alue creation or all sta#eholders

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NBP

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National Bank of Pakistan Brief history
Jear o Incorporation> National Ban# o Pa#istan (the Ban#) was established on November :( 5:8: under the National Ban# o Pa#istan *rdinance( 5:8:. Jear o Nationali%ation> )he year o nationali%ation is 5:F8. *wnership .tructure> It has the ollowing ownership .tructure>  =overnment F;.9L

 =eneral PublicAD.AL -inancial year
)he inancial year o the Ban# commences rom the 5 st day o <anuary and ends on the D5st day o "ecember every year.

=roup .tructure>  "omestic branches  *verseas branches  .ubsidiaries  <oint ventures 5ADA AD 8 A

 Associated companies active A As o "ecember D5( A77; (Parent Ban#)  Number o employees 58777 or 1,<010 5E bc7878779:;

6irtual 3niversity * Pa#istan

NBP  )otal assets  Pretax pro it  A ter tax pro it  No. o customers  4ar#et 2apitali%ation

([email protected]) 5; 3. H 57(E77 (44) 3. H 8DA (44) 3. H A97 (44) P 57 (44) 3. H D(E8A (44)

Boar& of =irectors6
At present the Board consists o ; "irectors and a President who is the 2hie 0xecutive o the Ban# and presides over the meetings o the Board. 5. .yed Ali /a%a $ 2hairman ' President .yed Ali /a%a is the 2hairman( President and 2hie 0xecutive * icer o National Ban# o Pa#istan (NBP)( the largest commercial ban# o the country. 4r. /a%a is a graduate o the +ondon .chool o 0conomics and 4..c. in Adm. .ciences as well as a -ellow 4ember o )he Institute o Ban#ers in Pa#istan. &e started his career in 5:FD$F8 as International 4anagement )rainee with the Ban# o America (B*A)( .an -rancisco. At B*A he wor#ed at various positions abroad as well as in Pa#istan( inally( becoming 4anaging "irector and /egional 4anager or the 4iddle 0ast( North A rica and Pa#istan. A. 4r. Ibrar A. 4umta% A. 4ian ,ausar &ameed 8. 4r. A%am -aru!ue E. 4r. .i#andar &ayat <amali ;. "r. Ca!ar 4asood ,han F. 0#hla! Ahmed Q 0xecutive voice president( .ecretary Board o "irectors )he number o "irectors o the Ban# shall not be less than E and not more than F( excluding Auditors 5; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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Chartered Accountants -ord /hodes .idat &yder ' 2o. Chartered Accountants 4. Jousa Adil .aleem ' 2o. /872/ 2=9"!O ! 4andiviwala ' 1a ar Advocates ' +egal 2onsultants Initially the Ban# was established with the obBective to extend credit to the agriculture sector. )he National Ban# o Pa#istan has its head!uarters in ,arachi( Pa#istan. It has now over 5(A77 branches throughout Pa#istan. )he ban# provides both commercial and public sector ban#ing services. It has assets worth H: billion in A778. )he normal procedure o establishing a ban#ing company under the 2ompanies +aw was set aside and the Ban# was established through the promulgation o an *rdinance due to the crisis situation that had developed with regard to inancing o Bute trade. )he Ban# commenced its operations rom November A7( 5:8: at six important Bute centres in the then 0ast Pa#istan and directed its resources in inancing o Bute crop. )he Ban#Gs ,arachi and +ahore o ices were subse!uently opened in "ecember 5:8:. )he nature o responsibilities o the Ban# is di erent and uni!ue rom other ban#sK inancial institutions. )he Ban# acts as the agent to the .tate Ban# o Pa#istan or handling ProvincialK-ederal =overnment /eceipts and Payments on their behal . )he Ban# has also played an important role in inancing the countryGs growing trade( which has expanded through the years as diversi ication too# place. )oday the Ban# inances importKexport business to the tune o /s. EA.F billion( whereas in 5:;7 inancing under this head was only /s. 5.E8 billion.

Business volu#e of NBP
As o "ecember D5( A77; the ban# has>  )otal assets  Pretax pro it  A ter tax pro it 3. H 57(E77 (44) 3. H 8DA (44) 3. H A97 (44) 5F 6irtual 3niversity * Pa#istan bc7878779:;

NBP  No. o customers  4ar#et 2apitali%ation

([email protected]) 59 P 57 (44) 3. H D(E8A (44)

NBP earned a ter tax pro it o over /s ; billion or A778 as against /s 8 billion or the last year. )he increased pro it demonstrates e orts o the management( which was able to increase mar# upKinterest income by 9L over the previous year. Also( mar# upKinterest expense was reduced by DL rom previous year. )he -ee Income increased by E;L rom /s D.D billion or A77D to /s E billion this year. )he Advances are ully provided as re!uired. )his year NBP made a lower provision at /s 5.F billion as against /s A.; billion or A77D. All these actors contributed toward larger pro itability or the year under review. NBP proposed cash dividend at 5E L or A778 (A77D> 5A.E L) together with bonus shares at A7 L( the same as or the last year. 2ash payout remained at 5AL as in A77D. )he 0P. or the year A778 is 5A.;9. (/s. 9.ED>A77D) one o the highest in the ban#ing sector. )he P0x ratio wor#s out to an attractive 9.;A. National Ban# o Pa#istan (the Ban#) is engaged in providing commercial ban#ing and related services in Pa#istan and overseas. )he Ban# also handles treasury transactions or the =overnment o Pa#istan as an agent to the .tate Ban# o Pa#istan (.BP). It operates 5(ADA branches in Pa#istan and 59 overseas branches. )he nature o responsibilities o the Ban# is di erent and uni!ue rom other ban#sK inancial institutions. )he Ban# acts as the agent to the .tate Ban# o Pa#istan or handling ProvincialK-ederal =overnment /eceipts and Payments on their behal . )he Ban# also inancing the countryGs growing trade( which has expanded through the years as diversi ication too# place. )oday the Ban# inances importKexport business to the tune o /s. EA.F billion( whereas in 5:;7 inancing under this head was only /s.5.E8 billion. Cith the geographical development o its branches( the National Ban# has been able to extend its services to a much larger number o Pa#istanis all over the country. )oday it has more than 9.E million accounts. Ban# has also a presence on the Internet. It has 59 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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modernised its services by installing Automated )eller 4achines (A)4s) called R2A.& +IN,R at selected branches and presently 5F A)4s are operational in maBor cities. )he Ban# holds E.9DL interest in Ban#( Al$<a%ira. National Ban# o Pa#istan (NBP) has been a maBor historical partner o the government. )oday it serves over nine million customers in 5(A77 branches throughout the country in commercial( corporate( retail and consumer ban#ing. Pa#istanGs largest inancial institution( NBP represents a AAL share o the countryGs total deposits and a D7L share o accounts. )he ban# also continues to be the principal treasury ban# in Pa#istan( providing extensive government agency revenue collections.

Pro&uct lines 'NBP Pro&ucts)
5. NBP premium Amdani> (4onthly income scheme)
o Amount o investment re!uired rom /s. E7(777K$ to /s. E(777(777 o Investment period is E years o -ree "emand "ra t( Pay *rder and NBP *nline Aasan Ban#ing o -ree 2he!ue Boo# K NBP 2ash 2ard (A)4 M "ebit) o Pro it paid 5( A( D( 8 and E year are F.E7L( 9.E7L( :.E7L( 57.E7L ' 55L respectively on monthly basis o 1a#at and withholding tax will be deducted as per rules

A. NBP Premium .aver> (P+. .aving Account)
 4inimum saving balance o /s. A7(775 and a maximum balance o /s. D77(777S  -ree NBP 2ash 2ard (A)4 M "ebit) 5: 6irtual 3niversity * Pa#istan bc7878779:;

NBP

([email protected]) A7  )wo debit withdrawals allowed in a month and no limit on number o deposit ransactions  Pro it calculated monthly and paid on hal yearly basis

D. NBP ,arobar> (President /o%gar .cheme)
I you are aged between "# and $% years, you could be eligible for easy financing for self employment in the categories below> NBP ,arobar 3tility .tore< NBP >aro$ar *o$ile :tility !tore< NBP >aro$ar *o$ile 7eneral !tore< NBP >aro$ar 4ransport< NBP >aro$ar PCO< NBP >aro$ar 4ele-Centre?

8. NBP .aibaan> (&ome -inancing)
Product Items>  &ome -inance  &ome 2onstruction  Balance )rans er -acility (B)-)  &ome /enovation  Purchase o land M 2onstruction 5. &ome -inance or &ome purchase> (&ouse or Apartment) -inancing amount -inancing period "ebt to 0!uity A. &ome 2onstruction> -inancing amount -inancing period "ebt to 0!uity D. &ome /enovation> -inancing amount up to DE 4illion A7 6irtual 3niversity * Pa#istan bc7878779:; up to DE 4illion D to E years 9E>5E (4aximum) up to DEmillion D to A7 years 9E>5E (maximum)

NBP -inancing period "ebt to 0!uity

([email protected]) A5 D to E years 9E>5E (4aximum)

8. Purchase o +and and or 2onstruction thereon -inancing amount -inancing period "ebt to 0!uity
;.

up to DE 4illion D to A7 years F7>D7 (4aximum)

/e$-inancing (Balance )rans er -acility (B)-)) I you have a home inance acility outstanding with another ban# you can have it trans erred to National Ban# o Pa#istan through a hassle$ ree process. All home inancing acilities below /s. 5E4 "ebt to 0!uity /atio will be 9E>5E and or /s. 5E4 and above "ebt to 0!uity /atio will be 97>A7. E7L o the loan will be disbursed at the time o land purchase and rest o the E7L or its construction will be disbursed in 8 trenches.

E. NBP Advance .alary> (Personal +oan) In <anuary$A77D( National Ban# o Pa#istan has launched a uni!ue product( TNBP$ Advance .alaryG. 2urrently this product is or ixed$income permanent employees o -ederal ' Provincial =overnment( .emi$=overnment( Autonomous( .emi$autonomous( local bodies and other =overnment organi%ations. )he product is purely cash low based and o ers its holder to avail A7 (twenty) net salaries in one go to be repaid in up to ;7 (sixty) months. Cith no collateral( insurance or re!uirements( Advance .alary provides rapid disbursement in a short turnaround time.

;. NBP 2ash 2ard> (A)4M "ebit 2ard) F. NBP 2ash n =old> (/eady 2ash against =old)
A5 6irtual 3niversity * Pa#istan bc7878779:;

NBP  /ate o mar#$up 5DL p.a.

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 -acility o /s. F(777 against each 57 gms o net contents o gold  No maximum limits o cash  /epayment a ter one year  /oll over acility  *nly gold ornaments acceptable  Ceight and !uality o gold to be determined by NBPIs appointed schro s  No penalty or early repayment

9. NBP Protection .hield> (Personal Accident insurance)
Insurance 2overage In case o Accidental "eath (Including death due to S/iots( S.tri#es( S2ivil commotion( SActs o )errorism and Natural 2alamities li#e -lood( 0arth Oua#e( 2yclones etc).  2overage o /s. A77(777K$ or /s. A7K$ per month

:. NBP ,isan "ost> (Agriculture -orming Programme)

NBP !ervices
)he National Ban# o Pa#istan o ers a wide range o services to its customers and recogni%es the importance o e icient business delivery and providing timely solutions. &ere are a list o services that NBP o ersN

 "emand "ra ts>

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NBP

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I you are loo#ing or a sa e( speedy and reliable way to trans er money( you can now purchase NBPGs "emand "ra ts at very reasonable rates. Any person whether an account holder o the ban# or not( can purchase a "emand "ra t rom a ban# branch

 .wi t .ystem>
)he .CI-) system (.ociety or Corldwide Inter ban# -inancial )elecommunication) has been introduced or speedy services in the area o home remittances. )he system has built$in eatures o computeri%ed test #eys( which eliminates the manual application o tests that o ten cause delay in the payment o home remittances.

 )ravelers 2he!ues>
Negotaibility> 6alidity> Availiability> 0ncashment> +imitation> .a ety> Pa# /upees )ravelerGs che!ues are a negotiable instrument. )here is no restriction on the period o validity At F77 branches o NBP all over the country At all 877 branches o NBP No limit on purchase NBP )ravelerGs 2hec!ue are the sa est way to carry our money

 +etter o 2redit
NBP is committed to o ering its business customers the widest range o options in the area o money trans er. I you are a commercial enterprise then our +etter o 2redit service is Bust what you are loo#ing or. Cith competitive rates( security( and ease o transaction( NBP +etters o 2redit are the best way to do your business transactions.

 Pay *rder>
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NBP

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NBP provides another reason to trans er your money using our acilities. *ur pay orders are a secure and easy way to move your money rom one place to another. And( as usual( our charges or this service are extremely competitive.

 4ail )rans er>
4ove your money sa ely and !uic#ly using NBP 4ail )rans er service. And we also o er the most competitive rates in the mar#et.

 -oreign /emittance>
)o acilitate its customers in the area o &ome /emittances( National Ban# o Pa#istan has ta#en a number o measures to> • • Increase home remittances through the ban#ing system 4eet the .BP directivesKinstructions or timely and prompt delivery o remittances to the bene iciaries

 .hort )erm Investment>
NBP now o ers excellent rates o pro it on all itGs short term investment accounts. Chether you are loo#ing to invest or D months or 5 year( NBPGs rates o pro it are extremely attractive( along with the security and service only NBP can provide.

 0!uity Investment>
NBP has accelerated its activities in the stoc# mar#et to improve its economic base and restore investor con idence. )he ban# is now regarded as the most active and dominant player in the development o the stoc# mar#et. NBP is involved in the ollowing6
• •

Investment into the capital mar#et Introduction o capital mar#et accounts (under process)

A8 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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NBPGs involvement in capital mar#ets is expected to increase its earnings( which would result in better returns o ered to account holders

 NI"A>
National Income "aily Account )he scheme was launched in "ecember 5::E to attract corporate customers. It is a current account scheme and is part o the pro it and loss system o accounts in operation throughout the country

 2ommercial -inance>
*ur dedicated team o pro essionals truly understands the needs o pro essionals( agriculturists( large and small business and other segments o the economy. )hey are the customerGs best resource in ma#ing NBPGs products and services wor# or them.

 )rade -inance *ther Business +oans>
Agriculture -inance> NBP provides Agricultural -inance to solidi y aith( commitment and pride o armers who produce some o the best agricultural products in the Corld. Agricultural 2redit> )he agricultural inancing strategy o NBP is aimed at three main obBectives>$
• •

Providing reliable in rastructure or agricultural customers &elp armers utili%e unds e iciently to urther develop and achieve better production Provide armers an integrated pac#age o credit with supplies o essential inputs( technical #nowledge( and supervision o arming.

•

Agricultural 2redit (4edium )erm)>
•

Production and development AE

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bc7878779:;

NBP
• • • • • • •

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Catercourse improvement Cells -arm power "evelopment loans or tea plantation -encing .olar energy 0!uipment or sprin#lers

-arm 2redit> NBP also provides the ollowing subsidi%ed with ranges o D months to 5 year on a renewal basis.
• • •

*perating loans +and improvement loans 0!uipment loans e!uipment +ivestoc# loans or purchase o or the tractors( care( arm implements or any other and eeding o livestoc#

•

purchase(

Production +oans> Production loans are meant or basic inputs o the arm and are short term in nature. .eeds( ertili%ers( sprayers( etc are all covered under this scheme. I you re!uire any urther in ormation( please do not hesitate to e$mail us

 2orporate -inance>
Cor#ing 2apital and .hort )erm +oans. NBP speciali%es in providing ProBect -inance Q 0xport /e inance to exporters Q Pre$ shipment and Post$shipment inancing to exporters Q /unning inance Q 2ash -inance Q A; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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.mall -inance Q "iscounting ' Bills Purchased Q 0xport Bills Purchased K Pre$ shipment K Post .hipment Agricultural Production +oans 4edium term loans and 2apital 0xpenditure -inancing> NBP provides inancing or its clientsG capital expenditure and other long$term

investment needs. By sharing the ris# associated with such long$term investments( NBP expedites clientsG attempt to upgrade and expand their operation thereby ma#ing possible the ul illment o our clientsG vision. )his type o long term inancing proves the ban#Gs belie in its clientIs capabilities( and its commitment to the country. +oan .tructuring and .yndication National Ban#Gs leadership in loan syndicating stems rom ability to orge strong relationships not only with borrowers but also with ban# investors. Because we understand our syndicate partnersG asset criteria( we help borrowers meet substantial inancing needs by enabling them to reach the ban#s most interested in lending to their particular industry( geographic location and structure through syndicated debt o erings. *ur syndication capabilities are complemented by our own capital strength and by industry teams( who bring speciali%ed #nowledge to the structure o a transaction. 2ash 4anagement .ervices> Cith National Ban#Gs 2ash 4anagement .ervices (in process o being set up)( the customerGs sales collection will be channeled through vast networ# o NBP branched spread across the country. )his will enable the customer to manage their companyGs total inancial position right rom your des#top computer. )hey will also be able to ta#e advantage o our outstanding range o payment( eBection( li!uidity and investment services. In act( with NBP( youGll be provided everything( which ta#es to manage your cash low more accurately.

 International Ban#ing>
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NBP

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National Ban# o Pa#istan is at the ore ront o international ban#ing in Pa#istan which is proven by the act that NBP has its branches in all o the maBor inancial capitals o the world. Additionally( we have recently set up the -inancial Institution Cing( which is placed under the /is# 4anagement =roup. )he role o the -inancial Institution Cing is >$
• •

)o e ectively manage NBPGs exposure to oreign and domestic correspondence 4anage the monetary aspect o NBPGs relationship with the correspondents to support trade( treasury and other #ey business areas( thereby contributing to the ban#Gs pro itability

•

=eneration o incremental trade$ inance business and revenues

Co#petitors6
)he main competitors or the National Ban# o Pa#istan are as ollow> • • • • • • • Ban# Al alah +imited &abib Ban# +imited 4uslim 2ommercial Ban# +imited )he Ban# o ,hyber Allied Ban# +imited -aysal Ban# +imited As#ari Ban# +imited

)hese ban#s are the competitors or the National Ban# o Pa#istan because these ban#s o er wide range o acilities to the customerGs i.e. greater return on investment( investment security( A)4 acility to the account holders( better incentives to the account holders( minimi%ing ris# on investment etc. )hese ban#s are emerging and growing ast then National Ban# o Pa#istan so creating a greater competition amongst the Ban#ing sector. )his growing competition amongst the ban#ing sector puts a lot o pressure on the top level management o the National Ban# o Pa#istan to overcome this competition and A9 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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to ormulate strategies and action plans that will help to become a leader in the ban#ing sector. 4aBor threats NBP acing is rom its competitor especially rom denationali%ed commercial ban#. In which 42B is on the top o the list < )he Ban# provides A8 hour ban#ing convenience with the largest A)4 networ# in Pa#istan covering 5E cities with over 577 A)4 locations.

Corporate Philosophy at NBP
 Ce at NBP believe that our customers are our most important and 5st responsibility( we must( there ore( serve our present customers and promise to serve our potential customers to the best possible on$counter and behind$counter services. Ce should try to provide a total and integrate pac#age o services to create satis ied clientele. *ur braches( regional o ices and head o ice should regard the customer as their most priority( serving them with maximum possible help ulness and courtesy.  *ur second most important responsibility is the employees who wor# or our great institution. )hey must have their security( stability and air treatment in their Bobs in recruitments and assignment( in training and development( in promotion and placement . till separation. )hey should be treated with dignity and should be made to rise to their highest potential wor#ing condition should be attended. .upervisor should be tough minded but air in the pursuit o ban# obBectives.  *ur third most important responsibility is our executives and o icers. )hey should have talent( education( experience and ability with a premium( place on commitment( #nowledge( leadership and orientation towards action( implementation( improvement and achievement o goals. A: 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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 *ur ourth responsibility is to the communities that r served by our great institution. *ur 5st community is the Pa#istani nation whose service is the reason or our existence.  *ur Eth responsibly is to our owners and stoc#holders. Ce must ma#e a sound pro it and protect our business by creating inancial services.

F:NC4"ON! OF NBP 2! 2 8P 8!8N424"98 OF !4248 B2N> OF P2>"!42N
 2ollection o che!ues and bill o exchange or its customers.  Paying insurance premium( rent or other obligations o the customers.  2ollecting interests due( dividend pensions and other sums due to customers.  )rans erring o money rom place to place.  Acting an executors( trustees or the customers.  Providing sa e custody and Bewelry documents or securities.  Issuing o travelerGs che!ues and letter o credit to give credit acilities or travel.  Purchasing shares or the customers.  Accepting bills o exchange on behal o customers.  3nderta#ing oreign exchange business.  -urnishing trade in ormation and tendering advice to customers.  -ormulating operation policy guidelines or the ban#s.  +aying down per ormance criteria or ban#s and ta#ing steps or ensuring their observance.  0valuating the per ormance o the ban#s in the context o operational guidelines issued to the ban#s.  "etermining the areas o coordination o the ban#s.  -ormulating schemes under section o the act. D7 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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 4a#ing recommendations to the ederal government or the appointment o the president and members o the executive board.  Analy%ing and appraising inancial statement including balance sheets and pro it and loss accounts o ban#s and appointment o auditors o the ban#.  2onducting such surveys( in!uiries and appraisals as may be necessary or the purpose o this act.  0xercising and per orming such powers and unctions o the ederal government under the act and such other unctions as the ederal government may assign to it.  0stablishing a research department or conduct ban#ing research and in particular study overseas ban#ing operation and problems o inancing.  0stablishing a central training institution or improving ban# services.  2oordinating the planning o the operations o nationali%ed commercial ban#s( and exercising general overall chec#s on the cost o their operations. the agricultural

"#portant Facts a$out NBP
• • • • • • Awarded ?Ban# o the Jear A775( A77A( A778 ' A77E@ by the world renowned ?)he Ban#er 4aga%ine@ -inancial )imes =roup( 3,. )he only Pa#istani Ban# included in the ?)op 577 Ban#s o Asia@ by ?0uro money@ 3,( 4arch A77E. Awarded ?Best 0merging 4ar#et ban# rom Pa#istan@ or the year A77E ' A77; by ?=lobal -inance@. Best -oreign 0xchange Ban# in Pa#istan A77E ' A77; by ?=lobal -inance 4aga%ine@. President NBP awarded T.tar o AsiaG by ?Business Cee#@ maga%ine in its <uly A77E issue. Awarded ?,issan )imes Award@ or the year A77E by Prime minister( Pa#istan or services in agriculture sector. D5 6irtual 3niversity * Pa#istan bc7878779:;

NBP • • •

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Awarded ?AA.&A /ecognition Award@ or gender sensitive management by Cor#er 0mployer Bilateral 2ouncil * Pa#istan. NBPGs standalone long$term and short$term rating was upgraded rom AAM to AAA by <2/ 6I. 2redit /ating Agency. 4oodyGs Investors .ervices have upgraded the -inancial .trength /ating ( -./) to " rom "$.

"ntro&uction of Business sector of NBP
National Ban# o Pa#istan provides commercial ban#ing and related products and services in Pa#istan and internationally. It accepts savings accounts( monthly income scheme accounts( current accounts( and oreign currency deposits. )he company also provides personal loansN agricultural inance( including agricultural credit( arm credit( and production loansN corporate inance( such as wor#ing capital and short term loans( medium term loans( and capital expenditure inancingN trade inanceN home loans comprising loans or home purchase( and home construction and renovation( as well as or the purchase o land and home constructionN and commercial inance or pro essionals( agriculturists( and business segments. In addition( it o ers cash cards( A)4 services( demand dra ts( mail trans er services( pay orders( travelerGs chec#s( micro credit services( letters o credit( oreign remittance services( short term investments( Islamic ban#ing( loan structuring and syndication services( and cash management services. -urther( National Ban# o Pa#istan handles treasury transactions or government( as well as provides trust services( including custody o securities. As o "ecember D5( A77;( it operated 5(AE7 branches. )he company is head!uartered in ,arachi( Pa#istan. National ban# o Pa#istan has 5ADA domestic branches across all over Pa#istan and 59 oversees branches. National Ban# o Pa#istan maintains its position as Pa#istanIs premier ban# determined to set higher standards o achievements. It is the maBor business partner or the =overnment o Pa#istan with special emphasis on ostering Pa#istanIs economic growth through aggressive and balanced lending policies( technologically oriented products and services o ered through its large networ# o branches locally( DA 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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internationally and representative o ices. )he ban# provides both commercial and public sector ban#ing services.

)he Ban# has ollowing subsidiaries>$ National "iscounting .ervices +td.$ National Ban# 4odaraba 4anagement 2o. +td. $ National Agriculture +td.

)he nature o responsibilities o the Ban# is di erent and uni!ue rom other ban#sK inancial institutions. )he Ban# acts as the agent to the .tate Ban# o Pa#istan or handling ProvincialK-ederal =overnment /eceipts and Payments on their behal . )he Ban# has also played an important role in inancing the countryGs growing trade( which has expanded through the years as diversi ication too# place. )oday the Ban# inances importKexport business to the tune o /s. EA.F billion( whereas in 5:;7 inancing under this head was only /s. 5.E8 billion.

NBP has undergone extensive restructuring since 5:::( in parallel with ban#ing sector re orm throughout the country. )oday( the ban#Gs streamlined corporate structure and improved e iciency is re lected in its pro itsN prior to 5::: pre$tax pro its amounted to E77 million rupees (H9.8 million)( whereas A77D registered at : billion rupees (H5E5.E million)( representing an almost A7$ old increase. 0nhanced training or employees( a streamlined management decision$ma#ing process( and an increased reliance on technology were essential elements in the ban#Gs restructuring. 4r. /a%a comments( ?I am pleased to say that our per ormance has been the best o any inancial institution in the country.@ International recognition o the ban#Gs achievements has not been slow in arriving. National Ban# Pa#istan has been voted AsiaGs number one ban# in terms o return on capital by Ban#er 4aga%ine o the 3,( which also awarded the ban# its Ban# o the Jear award in A775( A77A( and A778. DD 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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)he awards have helped Busti y pain ul decisions made throughout the restructuring o the ban#( especially with regard to downsi%ing sta numbers. 4r. /a%a elaborates( ?Chen we had a sta o AE(777 people( our assets were about AD7 billion rupees (HD.9 billion). )oday we have hal the wor# orce( and our asset base is EA7 billion rupees (H9.F billion).@ "rastically reducing costs in relation to income( National Ban# Pa#istan achieved the highest ran#ing in Asia in terms o return on capital. +oo#ing orward( 4r. /a%a says that the ban#Gs vision is to become a premier trade ban# in partnership with the government to acilitate Pa#istanGs global trade. 0xtremely optimistic o continued growth in the country( 4r. /a%a comments> ?)he act that National Ban# Pa#istan has done so well re lects the improvements in Pa#istanGs macroeconomic environment. National Ban# Pa#istanGs shares were listed at 57 rupees (H7.5;) in -ebruary o A77A and today the share price is FE rupees (H5.A).@ )he Ban# is providing all ban#ing services o mercantile and commercial ban#ing permissible in the country( which include>  &andling o treasury transactions or the =overnment o Pa#istan as agent to the .tate Ban# o Pa#istan.  Providing services under a )rust "eed as )rustee to the National Investment )rust (NI)) including sa e custody o securities on behal o NI).  Accepting o deposits o money on current( ixed( saving( term deposit and pro it and loss sharing accounts.  Borrowing money and arranging inance rom other ban#s.  Advancing and lending money to its clients.  -inancing o proBects( including technical assistance( proBect appraisal through longterm K short$term loans( term inance and mushari#a certi icates( etc.  Buying( selling( dealing( including entering into orward contracts o oreign exchange.  -inancing o seasonal crops li#e cotton( wheat( rice( sugar cane( tobacco( etc.  /eceiving o bonds( scrips( valuables( etc. or sa e custody.

D8 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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 2arrying on agency business o any description other than managing agent( on behal o clients including =overnment and local authorities.  =enerating( underta#ing( promoting( etc. o issue o shares and( bonds( etc.  )ransacting guarantee and indemnity business.  3nderta#ing and executing trusts.  <oint venturing with oreign dealers( agents and companies or its representation abroad.  Participating in RCorld Ban#R and RAsian "evelopment Ban#IsR lines o credit.  Providing personalised &aB services to intending &aBis.

"ntro&uction of Branch NBP !hahra-e-ha-ara Branch 3aripur
I have done my internship at National ban# o Pa#istan .hahra$e$ha%ara branch haripur. As the name o branch suggests that it is located on .hahra$e$ha%ara (=) /oad) haripur( but now this branch has been trans erred rom .hahra$e$ha%ara road to 2ircular road haripur and is in ront o =ovt. sentinental =irls school. )he manager o the branch is 4r. <amil$ur$rehman.

Na#es of !taff *e#$ers< their =esi+nation an& =uty
4anager o the NBP .hahrah$e$ha%ara branch <amil$ur$rehman

5. 4uhammad /a i!ue> (*=$IIK *peration 4anager) • 2ustodian 5st 2hec# 2lerc# DE 6irtual 3niversity * Pa#istan bc7878779:;

NBP • • • • • • Passing o P+s K 2A 2hec!ues *pening o P+s K 2A Accounts 2hec#ing o "ay Boo#

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2hec#ing o 2harges and .uspens 6ouchers 2hec#ing o All "ay Boo#s 2ounter In charge

A. Naeem ,halid> (*=$IIK Accountant) • • • • • • • • Pension Passing =ovt and )IP ()elephone Industries o Pa#istan) <oint 2ustodian And 2hec# .ignature 2ash Incharge 2orrespondence AuditKInspection and .urprise etc. "ead .toc# .ecurity documents <oint .ignature on 2hec!ues

D. 4uhammad -ia%> (*=$III) • • • • • 0stablishment /emittance Bills 2hec!ue Boo#s issued 2A MP+. AK2 /econciliation o NBP =eneral AK2

8. 4uhammad A#ram> (*=$II K 2ashier) • • • 2ash duty -orge Note /egisterK+ist .croll o 3tility Bills D; 6irtual 3niversity * Pa#istan bc7878779:;

NBP • National Pri%e bond soldKpurchase

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E. Imran Noshad> ()emporary Assistant) • • • • • • BB* *perating Issuence o )o#en =ovt /eciept )rans er o =ovt 2ollection AK2 Premium AmdaniK.aving AK2 )elegram Cee#lyK /*2A

;. Asim ,han> • • • • • • All Advances )"/K 2all deposit paidKissued .2K +.2 .tationary Account *pening 2A and P+. )IP Pension

F. .hau#at Ali • • • • • • • Other staff inclu&es6 =ovt Pension Benolvent -und All 3tility Bills Payment *rder K )) Payment order issuedKpaid 4ail InwardK*utward "ispatch -$EA:

DF 6irtual 3niversity * Pa#istan bc7878779:;

NBP 4essenger> 5. 4ayyum ,han A. 4uhammad 4is#een .ecurity =uards> 5. .ar ra% shah A. Abdul /ashid D. 4ushta! Ahmad -lasher> .abir

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!tartin+ @ 8n&in+ &ates of internship
.tarting date o internship> ADK55KA77F 0nding date o internship> 7EK75KA779 "uration o internship> Internship )iming> .ix wee#s (8E days) -rom 7:>77am to 7E>77pm (i.e. ban#ing time)

4asks perfor#e& &urin+ internship at NBP
I Boined National Ban# o Pa#istan( .hahra$e$ha%ara branch &aripur on AD rd o November( A77F. -irst day( the manager introduced me about the unctioning o the branch and the sta . )he manager told me that 2ounter is the most important place o the D9 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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ban#. "uring the six wee#s o my internship( I wor#ed in di erent sections o the branch and did the maximum practice o ban#ing system details o which is as under>

 GENERAL BANKING:
-irst o all( I was as#ed to wor# in di erent sections o general ban#ing. I was attached to 2ounter with 4r. 4uhammad A#ram who has good command on this section. &ere we dealt with new customer who wanted to get in ormation and to deal with the branch. )his is a very interesting department because here we met people o di erent types and deal with them accordingly. In this section( I observed the ollowing unctions>

 CHEQUE AT COUNTER
A che!ue to withdraw the amount is presented on the counter with the ollowing re!uisites> 5 ... ... A ... ... D ... ... 8 ... ... E ... ... ; ... ... F ... ... Name o the Account &older 2urrent or previous date Amount in igures Amount in wording *ne signature o the account holder in the right bottom corner o the che!ue and two signature o the bearer on the bac# Branch .tamp in ront o the che!ue I the Account &older uses thumb instead o signature then the Pass Boo# is necessary with the che!ue *perationGs o icer chec#s and veri ies all these re!uisites. I it ul ills all the re!uisites( it is orwarded or payment a ter a certain procedure.

CHEQUE PAYMENT PROCEDURE
A ter all the re!uisites are veri ied and then the excessive balance is chec#ed and prescribed amount is deducted narrated on the che!ue( then .I=NA)3/0 60/I-I0" D: 6irtual 3niversity * Pa#istan bc7878779:;

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stamp (in case o signature only) on the signature and a PAJ 2A.& stamp are ixed and a )o#en is given to the che!ue bearer a ter writing )o#en No. on the speci ied che!ue. )hen the * icer =$II veri ied the che!ue and orwarded it to the cashier where the che!ue bearer receives the amount rom the account.

 ISSUANCE OF DEMAND DRAFT
A "emand "ra t is provided to the client in which he has to speci y that ban# it is drawn. )he amount both in words and igures is written on "emand "ra t.

 UTILITY BILLS:
-or the convenience o the customer( National Ban# o Pa#istan also collects di erent #inds o utility bills such as> 0lectricity Bills( .ui$=as Bills()elephone Bills etc. )he irst tas# that I have per ormed during my internship is writing the scroll o utility bills( which includes phone bills( gas bills. )he scrolls are written be ore the closing o the ban# time. All scrolls o utility bills are assigned to me during my internship rom the irst day to the last day o my internship period.

 TIP PENTIONS:
)he employers o )elephone Industries o Pa#istan receive their monthly pensions rom the National Ban# o Pa#istan. NBP .hahra$e$ha%ara disperse more than A777 )IP Pensions to the ormer employees every month. I have given a responsibility to mar# those Pensions rom Pensions boo# o )elephone Industries o Pa#istan. A ter the dispersement o Pensions( the scrolls o )IP Pensions are written in order to claim it rom National Ban# o Pa#istan )IP Branch. "uring my internship this wor# was assigned to me.

 ACCOUNT OPENING CA & PLS:
)his tas# is also assigned to me during my last D wee#s o my internship period. 87 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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)here are three types o accounts that are opened at the National Ban# o Pa#istan which are> • • • 2urrent Account P+. Account -ixed deposits

a) 2urrent Account> In this type o accounts( the client is allowed to deposit or withdraw money as and when he li#es( but there is re!uirement o maintaining the minimum balance o /s.E777K$ other wise /s.E7K$ will be deducted every month. 3sually the businessmen open this type o account and the ban# pays no pro it on it. )hese types o deposits are also exempt rom compulsory deduction o 1a#at. b) P+. Account> )his type o account is or those persons who want to ma#e small savings. )his type o account is opened with a minimum deposit i /s.A77K$ I the balance in the account alls below the minimum re!uirement then a lat charge o /s.5E7K$ is made in the account once in a hal year. 1a#at and other withholding taxes are deducted as per rules o the government. c) -ixed "eposits> In this type o account a certain amount is deposited or a certain period such as six months( one year( two year or longer. A ixed deposit receipt is issued in the name o the depositor. )he receipt is signed by the o icer in charge and the ban# manager. A notice is given to the depositor on a prescribed rom two wee#s be ore the -ixed "eposit /eceipt (-"/) alls due( re!uesting the depositor to withdraw his money or to renew his deposits. )he interest is allowed on ixed deposit varies with the period or which the deposit is made. Proce&ure of 2ccount Openin+ an& =epositin+ Forei+n 85chan+e6 -irst o all( the customer is re!uired to ill an application orm. )hen he attaches the photocopy o his identity card and ills the signatory cards. )hen he is allotted an 85 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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account number by entering in the account opening register. Now he ills the pay$in slip and deposits money on the counter. -ollowing things are needed or opening o account>      Account opening orm .ignature card +etter o #inship +etter o than#s Issuances o che!ues boo#

2ccount openin+ for#6 Account opening orm consist o  2ategory o account  2urrency  )itle o account  Account number  2ustomer in ormation  Initial deposit  Authori%ed person in case o customer death !i+nature car&6 )he signature card included the name and specimen signature o the customer /etter of kinship6 In the latter o #inship the customer authori%ed the ban# to pay the proceedings o hisKher P+.K2urrent oreign currency account to the related person by describing the relationship o the person with the customer a ter the death o the customer. /etter of thanks6 +etter o than#s is the latter issued by the ban# to the customer or two purposes 5) 5st purpose is to say than#s to the customer or opening the account in their ban# A) And purpose is to con irm the address provided by the customer while opening the account.

 Issuance o C!ec"ue #oo$:
2he!ues boo# is issued to the customer a ter sending the letter o than#s when the customer comes with the latter o than#s and re!uests or the issuance o the che!ues 8A 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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boo#. All the account opening ormalities must be completed be ore issuing the che!ueboo#. Account number is stamped on every lea o the che!ueboo#. 2he!ueboo# serial number is then entered in to the system. Basically two types o che!ueboo#s can be issued> 5. AE leaves che!ueboo# A. E7 leaves che!ueboo# "uring my period o internship in National Ban# o Pa#istan( I observed that when a account is opened then a che!ue is issued to thecustomer or drawing his money at per rules. -ollowing procedure is adopting or the issuance o che!ue. Chen a customer opens an account with the ban#( he is provided with che!ue boo# or withdrawals rom account. &owever( the irst che!ue boo# is given to the customer only when all the re!uired documents are chec#ed. A che!ue boo# contains ten( twenty ive( i ty or hundred leaves. )he che!ue boo# also carries a re!uisition slip or the issuance o the new che!ue boo#. )his slip is duly illed and singed by the customer. )he signature o the customer is veri ied by the ban# and new che!ue boo# is issued to the customer and serial numbers o the che!ue are duly entered in the boo# o the ban#. Along with the signature( person should also write his ull name ' address. 3sually only one che!ue boo# is issued at a time( however big concerns who need a number o che!ue boo#s at a time( may as# the ban# to stoc# as number o che!ue boo#s in their name and to point their name on these che!ue boo#s. Ban# debits the clientGs account or excise duty o /s.A.E7K$ per che!ue and #eeps the che!ue boo# ready or the customer( as on his advice. )he o icer #eeps and maintains the che!ue boo# register 2he!ue boo# inventory and che!ue boo#s issued are recorded in this register. )he account number or which the che!ue boo# is issued and the number o leaves are also recorded in this register when the che!ue boo# issued an entry is passed in the che!ue boo# issue register.

C%os&n' o Accoun(: 8D 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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)he customer can close the account. )he customer is re!uired to submit an application or closing the account. )he account is closed out and his balance is paid to him a ter deducting the closing charges( i.e. H A7 and the application is iled in account closing ile. 4here are #any reasons for closin+ of account  Account holder *wen re!uest  "eath o account holder  2losing o account due to the bad manners o account holder

 S!o)( C)e*&( +SC, & Loca% S!o)( C)e*&( +LSC,:
/ocal !hort Cre&it '/!C)6 +ocal .hort 2redit is the transaction that is made through National ban# o Pa#istan main branch haripur &a%ara( with the other branches that are wor#ing under main branch o National Ban# o Pa#istan and the transactions which are made with other ban#s within the haripur region through the main branch o NBP. .imply the +.2 re ers to the transaction that is made within &aripur region through the main branch o National Ban# o Pa#istan haripur. !hort Cre&it '!C)6 .hort 2redit is the transactions that are made outside the haripur region through the main branch o National Ban# o Pa#istan haripur. )his transaction may be between National ban# o Pa#istan haripur region and the national ban# o Pa#istan branch outside the &aripur /egion or with the other ban#s outside the haripur /egion. In simple words .hort 2redit (.2) is the )ransaction o the main branch o National ban# o Pa#istan haripur with ban#s ( either NBP or any other ban#) outside the haripur region.

 REMITTANCES DEPARTMENT
I wor#ed in this department or one wee#. )his department deals in trans er o money rom one place to another or country by>  $"emand dra ts  $4ail trans er 88 6irtual 3niversity * Pa#istan bc7878779:;

NBP  $)elegraphic trans er

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In this department internees are advised only to observe the wor#ing o trans er o money rom one place to another place o the country by the above modes o trans erring money. "uring my stay in this department I observed that how demands dra t be issued. )he procedure is as ollows. -irst the ban# receives a written re!uest rom the customer to issue a ban# dra t. )he written re!uest is either in ban#s standard orm or separate paper signed by the applicant enclosed with cash or che!ues covering the amount o the dra t and other charges o the ban#. Chile issuing a ban# dra t it is necessary that the dra t should be ree rom alternations. All the details must be written clearly in in#. A ter issuance a demand dra t it is handed over to the applicant and its advice containing the particulars o the dra t is sent to drawer branch with its necessary in ormation and payment o the dra t is ma#e on its presentation.

8E 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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8; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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*ana+e#ent Functions at NBP 1? P/2NN"N7
8F 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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At National Ban# o Pa#istan most o the times planning is done at the top management and little autonomy is given to the lower level employees to do so. )op management( which includes the chairman and board o directors and unctional heads( ta#es the strategic decisions on which uture strategies are ormulated and plans are developed. &ere( the policies are said by =ovt( with the help o top management. At National Ban# o Pa#istan the top management set the clear de ined targets( obBectives and goals and then the employees put their e orts to achieve them. )he decision$ma#ing power or some operational matters has been delegated to the management. But they have wea#ness in incorporating complex activities which re!uire extensive pro essionalism( sophisticated coordination and decentrali%ation o decision power. &ere the decision ma#ing is not so !uic# as well as its implementation. )he planning is said to be in the hands o the seniors. As there is ormal hierarchy the obBectives are set by the top management and government.

 =ecision *akin+ Process
A decision is a choice made rom two or more alternatives. )he decision$ma#ing process is recogni%ing and de ining the nature o a decision situation( identi ying alternatives( choosing the ?best@ alternative( and putting it into practice. An e ective decision is one that optimi%es some set o actors such as pro its( sales( employee wel are( and mar#et share. 4anagers ma#e decisions about both problems and opportunities. At Na(&ona% Ban$ o Pa$&s(an most o the times planning is done at the top management and little autonomy is given to the lower level employees to do so. )op management( which includes the chairman and board o directors and unctional heads( ta#es the strategic decisions on which uture strategies are ormulated and plans are developed. &ere( the policies are said by =ovt( with the help o top management. At National Ban# o Pa#istan the top management set the clear de ined targets( obBectives and goals and then the employees put their e orts to achieve them.

89 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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)he decision$ma#ing power or some operational matters has been delegated to the management. But they have wea#ness in incorporating complex activities which re!uire extensive pro essionalism( sophisticated coordination and decentrali%ation o decision power. &ere the decision ma#ing is not so !uic# as well as its implementation. .ince Na(&ona% Ban$ o Pa$&s(an is a mechanistic type o organi%ation so decisions are made at the top by the President ' 2hairman or "irectors o the National Ban# o Pa#istan. 3sually decisions are made by the directors a ter holding a Boint meeting by the board o directors. )hese decisions are then implemented with the help o middle and lower level managers o the National ban# o Pa#istan. &A'A()*IA+ ,)CI-I.' &A/I'( )he decision ma#ing power rests in the hands o tas#s. According to managers( the decision ma#ing involve> • • • • • • • 5. A. D. AdministrationN Ideological wor#N ProductionN )echnical wor#N 4ar#etingN Cel areN And personnel. )he NBP managers and leadership do the> per ormanceN maintenanceN and morality ( namely( honesty( integrity and organi%ational commitment). )hey reported that they also ma#e the use o participative &ecision-#akin+? .ince overall "ecisions are made by the "irectors o the National Ban# o Pa#istan and are conveyed to the /egional o ices through legal notice. )he /egional o ice then sends these legal notices to the branches that are wor#ing under these /egional o ices. 8: 6irtual 3niversity * Pa#istan bc7878779:; the top management. Assessment centers are now used to select top managers with the aid o group simulation

NBP

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Abbottabad /egional o ice sends these legal notices to the National ban# o Pa#istan .hahra$e$ha%ara branch haripur. Chen the decisions are made at the top then they are strictly implemented in all Braches o National Ban# o Pa#istan through out the country. "ecisions are implemented through regional o ices.

 Current @ Future !trate+ies
/etail o New branded products delivered through e icient delivery channels o +everaging customer base o "eposit mobili%ation through product di erentiation( branding and complementary o erings o -ocus on corporate branding and .tandardi%ation o branch premises. .40 ' Agriculture> o -ocus on un$accessedK high potential sectors .40s( 4icro inance( and Agriculture 2orporate ' Investment> o 2ustomer relationship continuity and high growth o industrial sector o *ptimum utili%ation o strategic assets by entering into strategic business alliances and ventures &uman /esource 4anagement> o .uccession planning and business continuity o 2ontinuous development through s#ill set evaluation and training o resources In ormation )echnology o Ac!uisition o new core ban#ing so tware

O$Aectives of National Bank
E7 6irtual 3niversity * Pa#istan bc7878779:;

NBP

([email protected]) E5 *bBectives are ends towards which an enterprise activity is aimed.

)he purpose o business is production and mar#eting o economic goods and services but to accomplish these obBectives to a number o enterprise obBectives may be necessary. National ban# o Pa#istan has certain obBectives. )hese obBectives are +-, A*.anc&n' %oans +/, Acce0( *e0os&(s +1, Re2&((&n' o un*s +3, Sa%e o 0)o2&sso)4 no(es +5, Se%%&n' an* )ea%&6&n' 0)o0e)(4 o #an$ c%a&2s +7, In.es(2en( o) un*e)8)&(&n' o s(oc$s '1) 2&vancin+ loans6 one o the main obBective o NBP is advancing loans to industrialists and traders against security o stoc#( debentures or other securities '%) 2ccept &eposits6 Ban# provides deposit acility to its customers. )he types o deposits are  P)o &( an* %oss sa.&n' accoun(s  F&9e* accoun(  Cu))en( accoun( '3) e#ittin+ of fun&s6

)he ban# provides the acility to its customers remitting large amounts o money in the orm o ban# "ra ts( )elegraphic )rans er( 4ail )rans er to where ever the customers want. E5 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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',) !ale of pro#issory notes6 )o sell and reali%e the proceeds o sale o any promissory notes( debentures( stoc# receipts( bounds( shares etc. '.) !ellin+ an& reali-in+ property of $ank clai#s6 )o manage sell and reali%e all property whether moveable or immoveable which may come in any way o the ban# in satis action o its claim.

'6)"nvest#ent or un&erwritin+ of stocks6 )o invest the unds o the ban# in or the underwriting o any o stoc#s( unds( shares securities( debentures( bonds or scripts or other securities or money issued by any public limited companies and to convert them into money when re!uired.

%? O 72N"B"N7
EA 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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According to managers( organi%ation is very much organi%ed as both individual and group tas#s are assigned here in National Ban# o Pa#istan. )he Bobs are assigned in such a way that every one is as#ed to organi%e and wor# around his own duty and wor#. &ere the culture o mutual wor# has been developed. &ere all the departments are organi%ed in a harmonial way which ends in a synergic e ect or the whole organi%ation. All the unctional things are very much organi%ed and disciplined is maintained here.

*aAor properties of NBP Or+ani-ational !tructure6
National Ban# o Pa#istan is a ormal type o organi%ation. &ere are some o the maBor properties o NBPIs *rgani%ational .tructure.  As there is ormal hierarchy and centrali%ation decisions in the organi%ation( so the obBectives are said by the top management and then implemented throughout the organi%ation. )he top management set the clear de ined goals( so that subordinates put their e orts to achieve these goals in the positive manner. As there are de ined goals( so management put their best e orts to achieve these goals. )he top management set the clear de ined goals( so that subordinates put their e orts to achieve these goals in the positive manner.  As there is ormali%ed organi%ational structure so top management ma#es the decisions in the hierarchical manner. .o there is concept o centrali%ation o decisions in the organi%ations.  0ach wor#er or manager is expected to be independent and not rely on anyone else.  In the NBP( the policies are said by =overnment o Pa#istan and then consulted and discussed by top management.  NBPGs management has its roots in the rich and old culture o Pa#istan( especially with regard to values( per ormance evaluation( personnel selection( and !uality control and proBect management. It is characteri%ed by teamwor#( orientation around relationships and multi$level regulations. ED 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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• *ain office6
e+istere& Office @ 3ea& Office6 )he National Ban# o Pa#istan has its head!uarters in ,arachi( Pa#istan.
National Ban# o Pa#istan( NBP Building I. I. 2hundrigar /oad ,arachi.

Phone6 M:A A5:A5.AF9F Fa56 M:A A5:A5.AF;5

No of e#ployees
)he total number o employees at National Ban# o Pa#istan is 58777 or 58(75:.

Or+ani-ational !tructure of NBP
)he structure o National Ban# o Pa#istan is shown in the organi%ational chart. As the chart shows the top governing body o National Ban# o Pa#istan is the board o directors. )he board o directors elects a president who then heads the executive board o directors( which comprises o provincial chie s and division heads etc. BO2 = OF =" 8C4O ! )he board o directors is the supreme governing body o National Ban# o Pa#istan. It comprises o a government representative( Pa#istan Ban#ing 2ouncil Nominee( Nominee o corporate sector and three directors rom National Ban# o Pa#istan. 8C8C:4"98 BO2 = OF =" 8C4O ! )he 0xecutive Board o "irectors comprises o the our provincial chie s( the three directors rom Board o "irectors( and the division heads. )hese people run the organi%ation. )hey are answerable to the president and the president is answerable to the Board o "irectors. !4 :C4: 8 OF 2 P O9"NC"2/ 382= OFF"C8 A provincial head o ice is headed by a provincial chie . As the organi%ational chart shows that under a provincial head o ice there are regional o ices. In PunBab there are E8 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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about nine regional o ices. 3nder each regional o ice there are two or three %onal o ices and under each o ice there are i teen to twenty branches.

*ana+e#ent 3ierarchy
P/0.I"0N) B*A/" *- "I/02)*/ 404B0/ 0U023)I60 B*A/" /0=I*NA+ 2&I01*NA+ 2&I0B/AN2& 4ANA=0/.

National ban# o Pa#istan has mechanistic structures that in luence people to behave in a predictable manner. "ecision ma#ing is highly centrali%ed and roles clearly de ined. In short National Ban# o Pa#istan has &igh speciali%ation( /igid departmentali%ation( 2lear chain o command( Narrow spans o control( 2entrali%ation( &igh ormali%ation Presently the National Ban# o Pa#istan is divided into 57 =roups headed by .06PsK06Ps. Its ield operations are controlled by : /egions reporting to as many /egional 2hie s( who control 87 1ones and 5E .ingle Branch 1ones headed by 1onal 2hie sN 5A 2orporate branches and 5(D:E domestic branches headed by Branch 4anagers. National Ban# o Pa#istan is designed as a bureaucracy in which authority and responsibility are arranged in a hierarchy. Cithin the hierarchy rules( policies( and procedures are uni ormly and impersonally applied to exert control over member behaviors. Activity is organi%ed within sub$units (departments) in which people per orm EE 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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speciali%ed unctions such as( accounting( or human resource unctions. People who per orm similar tas#s are clustered together. )he organi%ation design o National Ban# o Pa#istan matches people( in ormation( and technology to the purpose( vision( and strategy o the organi%ation. National Ban# o Pa#istanGs .tructure is designed to enhance communication and in ormation low among people. .ystems are designed to encourage individual responsibility and decision ma#ing. )echnology is used to enhance human capabilities to accomplish meaning ul wor#.

O 72N"B24"ON C32 4 OF N24"ON2/ B2N> OF P2>"!42N
=8!"7N24"ON! FO 3"738 /898/ OFF"C8 P 8!"=8N4

!8N"O 8C8C:4"98 9"C8 P 8!"=8N4 7 2=8 %%

8C8C:4"98 9"C8 P 8!"=8N4 7 2=8 %1

9"C8 P 8!"=8N4 7 2=8 %0

2!!"!42N4 9"C8 P 8!"=8N4 7 2=8 10

7 2=8 " OFF"C8 7 2=8 18

E; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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7 2=8 "" OFF"C8 7 2=8 11

7 2=8 """ OFF"C8 '7 2=8 16)

87"ON2/ !4 :C4: 8

REGIONAL CHIEF EXECUTIVE

GENERAL MANAGER
Advances, Legal and Rec$ve#% &ing

GENERAL MANAGER
Planning, B siness 'evel$(!en" C s"$!e# )e#vices and I!(le!en"a"i$n $* A di"

GENERAL MANAGER
Ad!inis"#a"ive &ing

O 72N"B24"ON2/ !4 :C4: 8

EF 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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2hie 4anager

2hie *peration anager (2/A)

4anager 2redit Processing

4anager 2redit *peration

4anager -0US

4anager <BS

4anager Admin

4anager 2ompliance

V.ectionsW -0U 0xport Import /emittance -K2 AK2 In!uiry "eposits Bills 2learing 3tilities Accounts 2ashK2hest =ovt. 2ollection

V.ectionsW /econciliation "ispatch "ead .toc# .ecurity .ta Cel are

V.ectionsW Audit KInspection )o sign all Br. /eturns 4oney +aundering .etc

S-0U -oreign 0xchange S<B <ournal Ban#ing

B 2NC3 !4 :C4: 8
E9 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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MANAGER OG+I A'VANCE

OG+II A'MIN

OG+II )ERVICE)

OG+II OG+II OG+III CA)HIER ACCOUNT)

A))I)TANT

A))I)TANT

A))I)TANT

A))I)TANT

GO'O&N ,EEPER

GO'O&N ,EEPER

GO'O&N ,EEPER

GO'O&N ,EEPER

HEA' ME))ANGER

ME))ANGER

4ypes of Branches of NBP
E: 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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)here are a lot o di erent branches o National Ban# o Pa#istan. Ce explain them one by one.  )here are #ain $ranches in every city. In one city there is only one main branch( it is directly under the %onal o ice.  )hen there are co##ercial $ranches. )hese are the ordinary branches and are in the commercial areas such as the 4all /oad Branch.  )he "n&ustrial Branches are exclusively in industrial %ones.  )here are also colonies.  Another type is the *i5e& Branch such as civil secretariat branch. 0very #ind o wor# is done.  )here are also ProAect Branches created or speci ic purposes i$e the proBect and are at the site.  Another uni!ue type is the *o&el Branch. No other ban# in Pa#istan has these. In these branches all the wor# is done by the o icers. 0ven the o icers sit on the counters. 4odel Branches are in ,arachi( +ahore and Islamabad.  )here is one special type #nown as =rive in Branch. )here is one in ,arachi #nown as >ahkashan $ranch. People go to the ban# in the car( hand over the chec# and get the money sitting in the car. esi&ential Branches. )hese are exclusively in residential

="9"!"ON! OF N24"ON2/ B2N> OF P2>"!42N
;7 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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In order to per orm all the unctions( the National Ban# o Pa#istan has made some divisions( which per orm some speci ic unctions. -ollowing are the divisions>  C 8="4 ="9"!"ON )he main unction o this division is to ma#e the credit policies( and also to do credit ceiling which means the maximum amount o credit that can be given to a certain client. )his division also loo#s or the agricultural and small loans. It also considers the cases o right o i.e. bad debts.  CO PO 248 C 8="4 ="9"!"ON )he maBor unction o this division is to handle the big loans and industrial inancing( I.B./.". It also does the evaluation o credit ceiling policy devised by the credit division.  "N48 N24"ON2/ ="9"!"ON )his division has to loo# a ter the administration o National Ban# o Pa#istan outside Pa#istan. It ta#es care o all the a airs about the advances given outside( the management o the branches o the ban# outside Pa#istan( the posting o employees outside Pa#istan etc.  8CO98 ; 2N= /"4"724"ON ="9"!"ON )his division comes into operation when recovery o advances given becomes di icult or impossible. It is the Bob o this division to decide whether to go court against the client or not.  2:="4 2N= "N!P8C4"ON ="9"!"ON )he maBor unction o this division is to carry out the inspection o rules and policies. It also inspects the boo#s o accounts( whether they are #ept rightly or not.  2=*"N"!4 24"ON ="9"!"ON )his division consists o two wings the 0e)sonne% 8&n' and es(a#%&s!2en( 8&n'. )he 0e)sonne% 8&n' concerns with employee wel are and administration. It loo#s a ter things li#e rules relating to the administration o employees( the medical bills etc. )here is also a disciplinary cell( which is or punishments i an employee does something wrong. )he es(a#%&s!2en( 8&n' has a main unction o controlling the debt stoc# i.e.

;5 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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urniture( transport acility( stationary( sports port olio( security arrangements( and sta wel are. 8!82 C3 CO PO 248 P/2NN"N7 2N= 3:*2N 8!O: C8



=898/OP*8N4 ="9"!"ON )heir main Bob is to do human resource management. -or this purpose there are sta collages in Pa#istan. )here are our o them. )hey give training to employees outside organi%ation and also outside the country. In 5::9 National Ban# o Pa#istan sta collages have trained about F::A employees out o which DA5 were executives EEED o icers and 59F9 other sta . *utside National Ban# o Pa#istan they trained 5A9 executives( 55D o icers and A other sta . )hey have their own sta aculty rom PunBab 3niversity and +34..  8N7"N88 "N7 2N= *2"N48N2NC8 ="9"!"ON )he Bob o this division is maintenance o buildings( construction o proBects( proBect designing. )he head o this division is an engineer who has designation o executive vice president.  F"N2NC8 2N= "N98!4*8N4 ="9"!"ON It loo#s a ter the accounts( investment in resources and decides where to allocate the surplus unds.  C:!4O*8 !8 9"C8! ="9"!"ON )he main Bob o this division is to manage the opening and closing o branches( Islami%ation policy( then there is a complaint cell where the customer ma#es the complaints i they are not treated well. )his division also accepts 3aAA applications. )his division is very important as it directly concern the customers who are the ones to ma#e the deposits( which the ban# invests.  B:!"N8!! P O*O4"ON 2N= *2 >84"N7 ="9"!"ON It concerns the mar#eting and selling o the policies and interest rates o National Ban# o Pa#istan through advertisements on television or in the papers etc.  /2( ="9"!"ON ;A 6irtual 3niversity * Pa#istan bc7878779:; and also engage

NBP

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)his division consists o an e5ecutives co##ittee and an evaluation co##ittee. )heir Bob is documents evaluation and they give legal opinion to recovery and litigation division also.  CO*P:48 ="9"!"ON )his division does data processing through computers and develops control systems. All these divisions per orm their unctions through the branches and they are located at the head o ice in ,arachi.  4 82!: ; ="9"!"ON NBP boosts the ban#ing sectorGs largest treasury operation by virtue o being the principal ban# or handling the exche!uerGs business. -acing the current competitive interest rate environment( the ban# has elt the need to enhance its asset yield through the use o derivative products. )he ban# recently executed a Ouanta Interest /ate .wap aimed at providing cross currency interest rate hedge or one o its prime clients. )his is a watershed( being the irst such transaction to have been success ully launched in Pa#istan and will serve as the oundation stone or the promotion o derivative products.  "NFO *24"ON 48C3NO/O7; NBP has undergone a paradigm shi t by synchroni%ing the adoption o technology with product development as they view it as a tool or optimi%ing customer satis action. /ound the cloc# payment o utility bills in important cities is now in place and branches covering 9EL o the ban#Gs business will be ully automated on a real time basis. Chile the ?*ne$+in#@ A)4 switch sharing arrangement will serve to enhance the A8 hour ban#ing acility available to our customers( NBP is expanding its owned A)4 base as well. NBP is also inviting local and international so tware solution providers or the supply( implementation and maintenance o the 2ore Ban#ing Application so tware or its domestic and overseas branch ban#ing operations. In addition to the 2ore Ban#ing Application it is essential to understand the role o NBP as a maBor collection agent or the =overnment o Pa#istan with over D8 di erent types o receipts and disbursements done through 559:plus branches o the ban#. *n an average the ban# has approximately 5.E million transactions per day or approximately ten million customer accounts across ;D 6irtual 3niversity * Pa#istan bc7878779:;

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Pa#istan. )he ProBect includes computeri%ation o )rade -inance( /etail( =eneral +edger K -inance( Investment Ban#ing( 2orporate Ban#ing( National Investment )rust .ystem( +itigation 4onitoring( 2redit and /is# 4anagement .ystem and 2ard .ervices.  CO*P/"2NC8 ="9"!"ON NBP continually strive to adopt the best corporate governance practices to sa eguard the interests o our depositors( customers and shareholders. )hey have substantially intensi ied the scope as well as re!uency o our internal audit operation while employees are encouraged and rewarded or compliance with the high ethical standards that are been set.

=epart#entali-ation
"epartmentali%ation re ers to the process o grouping activities into departments. *r the organi%ation o something into departments according to unction( geographic location etc. )he goal o departmentali%ation is to group di erent o ices and Bobs that were divided up through wor# speciali%ation so that common tas#s can be coordinated. "epartmentali%ation is the bedroc# o hori%ontal di erentiation( which begins when one person assumes a unctional tas#. As others assume speciali%ed roles( a unctional structure emerges( with people placed in groups based on common s#ills or common use o resources. "epartmentali%ation may be>  -unctional "epartmentali%ation groups Bobs by the unctions that they per orm.  Product "epartmentali%ation  =eographical "epartmentali%ation At Na(&ona% Ban$ o Pa$&s(an activities are grouped into departments and the organi%ation o something into departments according to unction( geographic location etc. )he purpose o departmentali%ation at National Ban# o Pa#istan is to group di erent o ices and Bobs that were divided up through wor# speciali%ation so ;8 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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that common tas#s can be coordinated. In National Ban# o Pa#istan the "epartmentali%ation is based on operating unction( such as -inance( 4ar#eting( Administration( and &uman resource management. )here is a -unctional "epartmentali%ation> groupGs Bobs by the unctions that they per orm and =eographical "epartmentali%ation> groupGs Bobs on the basis o territory or geography.

!pan of control
.pan o 2ontrol is the number o peopleKsubordinates that can be e ectively managed by one manager. It is an organi%ational theory term that re ers to how relationships are structured between leaders and subordinates in organi%ations. A wide span o control exists when a person oversees many subordinates. A narrow span o control exists when a leader oversees ew subordinates. )o avoid becoming too tall( an organi%ation can increase the span o control( the number o subordinates a manager directly oversees. "i erent companies have di erent spans o control. A managerGs span o control is limited to the number o subordinates that can be ade!uately supervised. An increase in subordinates exponentially increases the subordinate relationships to be managed. A manager with two subordinates manages three relationships( but a manager with three subordinates manages six. I the span o control becomes too wide( a manager loses control over subordinates. At the National Ban# o Pa#istan .hahrahe &a%ara branch haripur( a narrow span o control exists because manager oversees ew subordinates. But at the /egional level or at the main branches o National Ban# o Pa#istan there is a wide span o control due to the reason that the managers oversees huge number o subordinates. .pan o 2ontrol at National Ban# o Pa#istan is also dependent upon a great number o actors( such as the nature o the wor# o the subordinates( the s#ills( capabilities( ;E 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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experience( seniority( !uali ications o the manager or subordinates( the use o in ormation technology. )here is a large span o control at the main o ice o the National Ban# o Pa#istan because "irectors have to oversee large number o lower level managers in order to ensure greater commitment and e ectiveness in the wor#. .ince at the small branches o National Ban# o Pa#istan the wor# is minimi%ed or less so there ore the number o subordinates oversees by managers is also less so there is a narrow span o control at the small branches. But at the main braches or regional o ices since the mount o wor# is greater so managers have to oversee large number o subordinates so there is a wide span o control.

Centrali-ation @ &ecentrali-ation
Centrali-ation vs =ecentrali-ation6 Chen top managers ma#e decisions( authority is centrali%ed. Chen lower$level managers ma#e decisions( authority is decentrali%ed. 2entrali%ation> 2entrali%ation occurs when an organi%ationIs decisions are primarily made by a small group o individuals at the top o its organi%ation while it delegates little or no authority to the lower levels o its organi%ation. 2entrali%ation may also be de ined as ?the gathering together( at a corporate head!uarters( o specialist unctions such as inance( personnel and in ormation technology@. "ecentrali%ation> "ecentrali%ation occurs when an organi%ation distributes decision$ ma#ing authority throughout its organi%ation. As there is ormali%ed organi%ational structure at Na(&ona% #an$ o Pa$&s(an so the top management ma#es the decisions in the hierarchical manner. .o there is concept o centrali%ation o decisions in the organi%ations. As there is ormali%ed organi%ational structure( so top management ma#es the decisions( so there is a concept o 2entrali%ation in Na(&ona% Ban$ o Pa$&s(an. )he decision ;; 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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ma#ing power o this .tate$owned organi%ation regarding the operational aspects has been delegated to the management prior to it in certain areas management has to ta#e permission rom the state and Board o directors or such decision$ma#ing. Na(&ona% Ban$ o Pa$&s(an is a highly centrali%ed organi%ation. )he decisions are primarily made by a small group o individuals at the top o NBP while it delegates little or no authority to the lower levels o its organi%ation. National Ban# o Pa#istan has a head!uarters( o specialist unctions such as inance( personnel and in ormation technology@. It gives its decision$ ma#ing authority to upper management or its operations and decision ma#ing o all its branches throughout the country through its main o ice. National Ban# o Pa#istan is also at the same time is a decentrali%ed organi%ation. )he decisions are also made at the branch level or regional level by the lower level managers or the wor# or which they are accountable. )here is a decentrali%ation because some decision ma#ing authority is also given to the lower level management.

For#ali-ation
)he use o written rules and procedures to standardi%e operations is #nown as ormali%ation. I ormali%ation and standardi%ation are extensive( there is no room or mutual adBustment. 0mployees are held accountable or ollowing rules. "egree o ormali%ation is the extent that roles are independent o speci ic personal attributes o individuals occupying the roles. As a matter o act( Na(&ona% Ban$ o Pa$&s(an is a ormal type o organi%ation. &ere( authority and the use o authority is directed and in luenced by the hierarchical structure and the seniority position within the organi%ation. In National Ban# o Pa#istan( the mega or strategic decisions are being ma#e by the top management which includes chairman( and Board o directors.

)here is a high degree o -ormali%ation at National Ban# o Pa#istan which tries to standardi%e and regulate behavior. -ormali%ation at National Ban# o Pa#istan can also ;F 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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reduce the stress o trying to build relationships between participants( and ma#e roles and relationships more obBective and external to participants.

(ork speciali-ation
Cor# speciali%ation is best described as the degree to which tas#s in an organi%ation are divided into separate Bobs. Another term or this would be division o labor( were division o labor e!uals part o an activity. T-e divisi$n $* la.$# inc#eased (#$d
c"ivi"% .% inc#easing eac/$#0e#1s s0ills, saving "i!e l$s" in c-anging "as0s, and .% c#ea"ing la.$#saving inven"i$ns and !ac-ine#%.

)oday wor# speciali%ation is still seen as a way to ma#e the most e icient use o wor#ersG s#ills( since wor#ers are placed in Bobs according to their s#ills( and they are paid accordingly. *ther a&vanta+es are or example> the improvement o employeeGs s#ills at per orming tas#s( less costly( easier( and more e icient employee training (li#e the train$the$trainer model)( and invention or innovative e!uipment or mass production. Cor# speciali%ation is up to a certain point a source o unlimited productivity. =isa&vanta+es include> boredom. -atigue( stress( lowered productivity( poor !uality o wor#( increased absenteeism( and higher Bob turnover.
Na"i$nal Ban0 $* Pa0is"an divides i"s * nc"i$ns acc$#ding "$ di**e#en" s(eciali2ed a#eas s c- as Ad!inis"#a"i$n, H !an #es$ #ce !anage!en", Finance and Ma#0e"ing e"c. Na"i$nal Ban0 $* Pa0is"an (laced "-e /$#0e#s in 3$.s acc$#ding "$ "-ei# s0ills, and "-e% a#e (aid acc$#dingl%. As "-e Manage!en" $* "-e Na"i$nal Ban0 $* Pa0is"an 0n$/s "-a" "-e divisi$n $* la.$# inc#eased (#$d c"ivi"% .% inc#easing eac- /$#0e#1s s0ills, saving "i!e l$s" in c-anging "as0s, and .% c#ea"ing la.$#saving inven"i$ns and !ac-ine#%.

.o as a #es

l" "-e#e is an i!(#$ve!en" $* e!(l$%ee1s s0ills a" (e#*$#!ing "as0s, less c$s"l%, easie#, and

!$#e e**icien" e!(l$%ee "#aining.

4echnolo+y *ana+e#ent
Innovation and the new technology development is a strong characteristic o National Ban# o Pa#istan culture as they are automating their wor#ings li#e tic#eting( reservation system( #itchen( and all o its operations. A new management in ormation systems are now being operated in National Ban# o
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NBP

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Pa#istan. )hey view s#ills or expertise( system lin# or networ#ing and participation as three acets o an inter ace hierarchy among people( the computer system and an organi%ation( interaction among which in luences the e ectiveness o technological innovations.

3? /ea&in+ /ea&ership at NBP
*rgani%ational li e goes beyond legality and bureaucratic administrative values. 0 ective organi%ations are those where leadership is inspirational( role model( learning ' grooming o ollowers. Individuals eel involved because o humane concern o their leaders and hence become more productive. 2ontrary to the transactional style o management this is considered organic( holistic ' more comprehensive approach( to leadership and management. Asiatic style o management and learning is considered trans ormational while that o Cestern is more transactional. -or example vi%. role o teacher should he be bound by his legal contract and a role which is Bust limited to class room or he is considered an overall role model( inspiring leadership and ethical values )he National Ban# o Pa#istanGs leaders consults their subordinate on proposed action and decision and encourages participation rom them. )his thing is very much promiment on departmental level and also on regional level very much active in leading the people.

Characteristics of /ea&ers at NBP
.ome important characteristics o the managersKleaders at Na(&ona% Ban$ o Pa$&s(an are>  2onsult employees about important decisions.  &ave harmony among its members ( managementKlabor).  &ave employees who are well in ormed about decisions.  Are responsive to employees needs. ;: 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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 4a#e decisions a ter bargainingKnegotiating among managers o di erent units.  )ry to motivate the employees by satis ying them with monetary bene its and with other ringe bene its li#e recognition( riendly environment( appreciation letters( problem solution with consultancy etc. .

,? Controllin+
In National Ban# o Pa#istan( the controlling unction is per ormed by the seniors who are up in the hierarchy level. )hey #eep the records o all the things. -or sales and mar#eting department they have targets to be achieved by the sales orce. )hen they continuously #eep the chec# on it. )hey ta#e the eedbac# rom employees. )hey have the employeeIs per ormance appraisal system through which they come to #now about the areas which are needed to be developed. )hey also ta#e corrective and preventive actions where they are re!uired.

F7 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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Controllin+ !tan&ar&s
Polices regarding .tandards or National Ban# o Pa#istan are as ollows> IN-/A.)/32)3/0 -INAN20 )I40 IN-*/4A)I*N &34AN /0.*3/20. "NF 2!4: :C4: 86  It is the policy to provide delivery( public administration( and communication to the wor#er.  It is the policy to de ining the management duties and responsibilities.  It is the policy to minimi%ing liabilities to customer and shareholders.  It is the policy to development o new system.  It is the policy to retaining con idential and proprietary in ormation. Finance6  )o maintain a record o trust.  )o provide certi ied inancial statement as re!uired.  4aintain the audit o inancial statement as re!uired.  2ash must issue with proper authori%ation.  -inancial record will be proper. 4"*86  Per ormance report must be given at the end o the D7 days. F5 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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 4a#e a daily timetable as well as monthly timetable.  =oals are o the long$term duration.  Ban#ing time will be :>77 A.4. to E P.4. "NFO *24"ON6  In ormation will be secret.  In ormation will be provider by the board o director.  In ormation will be given to all the employees.  In ormation will be send to the shareholders. 3:*2N 8!O: !8!6  =uideline and goal is set or every employee.  Positive wor#ing atmosphere is provided.  &eld the annual discussion between the managers and employee.  )raining education or employees.  =ive the opportunity or career development.

Perfor#ance 2ppraisal !yste#
)he system by which organi%ations evaluate individual Bob per ormance is #nown as Per ormance Appraisal .ystem. 4ore over it is about the employee per ormance and the accountability. As the world is now global village and your competitor is watching you( so the organi%ations need high per ormance. At the same time the employees need bac# FA 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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on their per ormance guide or their uture behavior. .o the output o the organi%ation depends upon the eedbac# provided to the employee timely. 0specially the newcomer to the organi%ation needs to understand their Bobs and their wor# setting. )he longer$service employees also want positive eedbac# on the good things they do. .o the National Ban# Pa#istan is an organi%ation where the management eels about the employees. )he employees eel sense o belongingness in return. &/" section always ta#es this opportunity to evaluate the per ormance o the employees. )he appraisal system also helps the management o the National Ban# Pa#istan to help the managers with placement( pay( and other &/ decisions. )he &/" section o the National Ban# Pa#istan carries out the appraisal or the ollowing usesN It allows the employee( the 4anager to ta#e necessary about the improvement o the per ormance. )he system also helps in promotion and pays increase o the deserving employees a ter their evaluation and also prepares the next person or the succession plan.

2nalysis of 3 =epart#ent
National Ban# o Pa#istan has an existing &uman /esource development department( which operates to increase the existing s#ills o the people existing or coming in the organi%ation( in order to achieve its obBectives in a more e icient and e ective manner. National Ban# o Pa#istan has devoid two basic training techni!ues. -irst is related to the training and development o mid term plan( regarding new clients ' middle level employees. .econdly( the training ' development or long term plan( regarding the FD 6irtual 3niversity * Pa#istan bc7878779:;

NBP

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career development o higher level employees. National Ban# o Pa#istan applies on$Bob and o $Bob strategies to train its employees (middle ' higher level). National Ban# o Pa#istan training ' development academy advises <ob rotation to ensure ' acilitate the producing o all rounder. )he source o this assignment con irms the availability o the training plan at least A months be ore the commencement o New Jear( in order to ma#e it easy or the sociali%ing and orientation o the new employees. National Ban# o Pa#istan believes in pre$post training test or existing employees ' post training test or new employees. )he trainees will be re!uired to submit bac#$home action plan( which will be ollowed up by the <N4"2K.ta colleges. )hese plans will help in evaluation and end use o training.

*ana+e#ent Functions at NBP !hahra-e-ha-ara 3aripur Branch
P/2NN"N7
At National Ban# o Pa#istan shahra$e$ha%ara branch most o the times planning is done at the top by the manager and little autonomy is given to the lower level employees to do so. At National Ban# o Pa#istan shahra$e$ha%ara Branch manager set the targets( obBectives and goals and then the employees put their e orts to achieve them. F8 6irtual 3niversity * Pa#istan bc7878779:;

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&ere the decision ma#ing is not so !uic# as well as its implementation. )he planning is said to be in the hands o the 4anager.

O 72N"B"N7
According to manager( organi%ation is very much organi%ed as both individual and group tas#s are assigned here in NBP .hahra$e$ha%ara Branch. )he Bobs are assigned in such a way that every one is as#ed to organi%e and wor# around his own duty and wor#. &ere the culture o mutual wor# has been developed. &ere all the departments are organi%ed in a harmonial way which ends in a synergic e ect or the whole organi%ation. All the unctional things are very much organi%ed and disciplined is maintained here.

/82="N7
)he Branch 4anager consults their subordinate on proposed action and decision and encourages participation rom them. At Branch level 4anager 2onsult employees about important decisions( have harmony among its members( have employees who are well in ormed about decisions( Are responsive to employees needs( 4anager 4a#e decisions a ter bargainingKnegotiating among managers o di erent units. 4anagers try to motivate the employees by satis ying them with monetary bene its and with other ringe bene its li#e recognition( riendly environment( appreciation letters( problem solution with consultancy etc.

CON4 O//"N7
)he controlling unction is also per ormed by the manager and operational manager who are up in the hierarchy level. )hey #eep the records o all the things. )hey ta#e the eedbac# rom employees. )hey have the employeeIs per ormance appraisal system through which they come to #now about the areas which are needed to be developed. )hey also ta#e corrective and preventive actions where they are re!uired. *2N278*8N4 OF B 2NC3 OG:I +MANAGER, FE 6irtual 3niversity * Pa#istan bc7878779:; ;

NBP O7-"" O7-"" Cashier 2ssistants !ecurity 7uar&

([email protected]) F; 1 % % 3 %

!(O4 2N2/;!"! of NBP
)he .C*) analysis o National Ban# o Pa#istan is given below>

!4 8N743!
 NBP one o the largest inancial institutions o Pa#istan with eight million o customer base NBP holds A8.;L share o time and demand deposits in the country. +ocal currency deposits comprise ;FL o ban#Is total deposits while oreign currency deposits account or the rest.  NBP has an extensive domestic branch networ# o 5A77 (according to the latest data) branches located all over Pa#istan. )he Ban# also has a presence in 5: international locations including the 3.A( 3nited ,ingdom( 0urope and the -ar 0ast. F; 6irtual 3niversity * Pa#istan bc7878779:;

NBP 

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NBPIs total assets stood at Pa# /s.DF7 billion on "ecember A777. )his included total earning assets o about Pa# /s.A;9 billion with gross loan port olio o Pa# /s.587 billion. )he ban# also has an investment port olio o Pa# /s.:5 billion( which comprises treasury securities( corporate bonds( shares and other securities. NBP cash provision as percentage o non per orming loans e!ual to ;7L this coverage actor or the non per orming loans is the highest amongst the nationali%ed commercial ban#. NBP is wor#ing as right arm government o Pa#istan as it is responsible or all claims o government or recovery as well as payment. All depositor o NBP are in relie that their money security is guaranteed by government o Pa#istan. It acts as an agent o the 2entral Ban# wherever the .tate Ban# does not have its own Branch.







(82>N8!!8!
NBP sta especially at lower considers their wor# as burden. )hey usually waste time in other tas# a part in per orming their duty. 3sing government property or there own need. )hey are reluctant to accept change brought by latest restructuring e orts.  )he general out loo# and interior layout o branches are not as re!uired according to modern ban#ing  NBP bearing up large burden in running those branches( which are not producing any income but #eep on adding expenditure.  NBP is relying on its traditional sources o income it has not ta#en bene it rom innovation in ban#ing li#e introducing retail ban#ing or consumer ban#ing and using any type o scheme to generate more deposits and producing more advances. -urther( more donGt even continue its credit card due mismanagement and lac# o control.  NBP is ar behind in o ering modern ban#ing acility li#e automated teller machines then other commercial ban# in Pa#istan as only eighteen branches in all over country have this acility.  NBP has only orty$ our on line branches. Chile rom remaining branches data gathering is time consuming( and not ool proo . Ouantum o settlement within FF 6irtual 3niversity * Pa#istan bc7878779:;

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di erent branches is pending because o this updating daily record is becoming very di icult.  2ustomers have to allow long lengthy procedure or opening o account as well applying or debt. Chich discourage most o the people to invest in NBP.  In NBP( most o the time merit not has importance in hiring o employees. .uch practices are blac# spot on the ace o ban# and resulted big losses and raudulent acts by NBP own employees.

OPPO 4:N"4"8!
/eorgani%ing e orts going on in the NBP has open many opportunities or NBP to grow. NBP current management has boarder vision. )hey have ta#en steps to improve customer services( streamline internal procedure and creating a delectating climate or technology initiative. )o achieve above mention obBective they have created operation group     .tarting o the retail ban#ing initial wor#ing. .etting o target or o ma#ing at least D77 branches country wide on line. 2losing o all those branches( which are burden on NBP. 4anagement to o er speciali%ed services to maBor corporate including advisory and debt syndication introduces the concept o relationship manager.  2omprehensive training programs has been develop to up grade the core ban#ing s#ills o the existing sta as well as integrate high !uality hiring.  )o improve the motivation o sta a merit$based culture is being promoted. )hrough overhauling the manpower recruitment preservation and per ormance appraisal system. )hese actions ta#en by current management provide a great opportunity or NBP or ma#ing it uture prosper and can ma#e NBP not less than any modern commerciali%e ban# in Pa#istan.

F9 6irtual 3niversity * Pa#istan bc7878779:;

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43 824!
-ollowing are the maBor threats or national ban# o Pa#istan> 4aBor threats NBP acing is rom its competitor especially rom denationali%ed commercial ban#. In which 42B is on the top o the list < )he Ban# provides A8 hour ban#ing convenience with the largest A)4 networ# in Pa#istan covering 5E cities with over 577 A)4 locations.  /etail ban#ing and consumer ban#ing resulting in the products such as credit cards( housing inance and automobile inance lending to small individual consumers( and purchases o automobiles( housing( and consumer goods are generally made on a cash basis. )hese are causing another threat( i not counter will result in signi icance loss o customers  /ecently ban#s and other inancial institutions have introduced innovative schemes to attract deposits( li#e gi t chec!ue scheme by 42B. )hese schemes o er pri%es on short and long term ixed deposits( through luc#y draws.  Now ban#s are using technology which covers the distance no matter how ar away any one( through a satellite based( on$line real$time ban#ing system and by o ering telephone ban#ing( electronic unds trans er( 0$Ban#ing and other modern acilities.



Conclusion
)his internship was a great experience. It was a real pleasure to wor# at National Ban# o Pa#istan with nice people in a good atmosphere. )his Internship report is about the National Ban# o Pa#istan( in which I have completed my internship. I have done my internship at National ban# o Pa#istan .hahrahe &a%ara Branch &aripur. I am a student o B. (Business Administration) and my speciali%ation is 4anagement but I have selected a National Ban# o Pa#istan or my internship because o no more opportunities available in &aripur 2ity. )he most important thing that I have learnt rom my internship F: 6irtual 3niversity * Pa#istan bc7878779:;

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at NBP is to #now that how management unctions li#e planning( organi%ing( leading and controlling are executed in a practical manner. )his internship report contains Introduction( mission statement( vision statement( overview( brie history( Business volume( along with products and services o ered by the National Ban# o Pa#istan. )he starting and the ending dates o my internship are also mentioned in the internship report. I have also mentioned the tas#s that I have per ormed during my internship period. In this Internship report I have mentioned the hierarchy( polices( .C*) analysis( and organi%ational structure related to National Ban# o Pa#istan. 4anagement unctions are also de ined in this report with respect to the National Ban# o Pa#istan.

eco##en&ations
)he global economic environment has changed( creating challenges and opportunities or the worldGs policy ma#ers. )he privati%ation drive has emerged as a strong tool o trans ormation( which is being recogni%ed as an essential ingredient or the economic well. Being o the countries themselves and or the rest o the world. Now there is a greater awareness that in an interdependent world all countries gain individually i these countries become positive contributor to world economic growth as whole. Ban#s are playing very important role in the economic growth o the countries. National Ban# o Pa#istan no doubt a positive contributor in this respect but I thin# there are certain points by adopting which can serve more e ectively and e iciently. )hese points are as under> 5. )his is a computer era. Cith the use o computer we can increase our e iciency. National Ban# o Pa#istan should computeri%e all its branches. By the use o computer properly these branches can increase there wor#ing e iciency. A. N.B.P. as public service oriented institution has to create business opportunities or themselves. Now a day there is a competition between the ban#s. 97 6irtual 3niversity * Pa#istan bc7878779:;

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2entral Asian /epublics (2A/s) have great opportunities o new business so N.B.P should open new branches in these /epublic. 4odel Ban#s li#e 2ity Ban#( 4.2.B. is using media very e ectively to increase the business o ban#s. .o National Ban# o Pa#istan should use electronic media or its business developments.

E. ;. F. 9. :. 57. 55.

)he inter erence o union in ban#ing business should be minimi%ed as it decreases the wor#ing e iciency o the employee as well as the ban#. )he wor#ing o the +ahore 2antt. Branch +ahore is satis actory but still these wor#ing e iciencies are or rom the standard o modern ban#ing system. )he ban# should inance its loans in those proBects that are meeting the re!uired standard and should avoid the political pressure. )he ban# should bring orward the new talent as resh #nowledge and education is considered very important to increase the e iciency and production. )here is need to ma#e the outloo# situations o branches in those manners that can complete the other modern ban#s in the ban#ing mar#et. ,eeping in view the hard wor# by the sta members at all levels o management( sta should be given bonus and increment every year. 2/0"I) 2A/". are issued by the di erent ban#s li#e 42B( ABP and 2iti Ban# etc. but NBP donGt issued this type o inance scheme( there is a place or this type o scheme in this ban#.

5A. 5D. 58. 5E.

.eparate des# or counter should be established in every branch to provide the in ormation as re!uired by the clients. )he environment o the o ices should be com ortable so that the client and sta must eel com ort during business in ban#. 3nsecured loan are not to be provided in case o ban#s directions( their amilies( companies or irms. )here are some clients having sound and success ul plan but without inancially sound and providing securities ban# should irms such policies that may solve this problem.

95 6irtual 3niversity * Pa#istan bc7878779:;

NBP 5;.

([email protected]) 9A

I observed that many branches o NBP are over crowded. +ess people can wor# which extra people per orm. Number o employees should decrease or new branches should opens or the adBustment o these extra employees.

5F. 59. 5:.

)here is too much dependence on handwor# and they are not getting at with computer programmed. All the branches o NBP should be computeri%ed. )here are some employees untrained which decreases the e iciency o the ban# branch. All the employees should well trained. 4ost o the ban# employees are stic#ing to one seat only( with the result that they become master o one particular Bob and loose their grip on other ban#ing operation. In my opinion each employee should have regular Bob change.

A7. A5. AA.

/e reshes courses or sta

are most important in my international organi%ation.

All the employees should have their courses according to their re!uirement. 0very year some o the employees should be sent or training to other countries and employees rom other countries should be brought here. In commercial institutions li#e ban#s( reward and punishment system should be introduced. 4eans achieve( smart( educated( s#illed( sel $spo#en and well$dressed sta AD. A8. AE. should be rewarded and appreciated and la%y( lethargic sta should be warned and punished. People have to wait or re$cashing their che!ues and or paying their utility bills( which is not good or reputation o ban#( it should be improved. Promotion should be given to competent persons on merit basis. )he National Ban# o Pa#istan needs to improve the service orientation at its branches( as these constitute the R ront lineR o the Ban# in terms o contact with its customers. A new monitoring system should be created to e iciently collect and utili%e the eedbac# rom the branches to support product development and enhance the !uality o service. A;. NBP maBor ault is that wasnGt #eep its pace with on going changing in ban#ing industry unli#e other ban#. Now this ban# combining all it power and trying to approach other ban#s. AF. +atest reorgani%ing e orts are necessary to ma#e it cost e ective also ma#ing its acility accordingly to modern ban#ing. )hese must continue. 9A 6irtual 3niversity * Pa#istan bc7878779:;

NBP A9.

([email protected]) 9D

Ban# management has to put its all e ort to change the prevailing culture o the ban# and to put the oundation stone o business oriented culture. In which employees give important to the ban# and its customer.

A:.

)o attract the customer in the uture NBP have to ma#e extensive e ort to give acilities o retail and consumer ban#ing. Plus the technology in the ban#ing which will be necessary or uture ban#ing is another wee# area need to be stressed.

D7. D5.

)he outloo# and interior lay out o the branches is another thing which needs to be improved. )he procedure o ta#ing services rom the ban# must be made easier and straight orward not involving long di icult procedure or simple tas#.

)o remain in the mar#et ban# need to be vigilant in the eyes o customer. *ne way is through promotion e orts( so that people aware about he services o the ban#ing and any addition which the ban# as made in the port olio o its services. (hat !trate+ies shoul& $e a&opte&D -ollowing strategies should be adopted by the 4anagement o the National Ban# o Pa#istan in order to achieve the obBectives>  Active participation in management a airs o the revived units  /eview o sic# units at regular intervals  *ut o court settlement  -ollow$up o rescheduled K restructured accounts  .ustainable debts  Personal visits o .enior 0xecutives rom &ead * ice to ield or recovery purpose  Better reward mechanism or the sta responsible or reduction in cla ssi ied port olio

9D 6irtual 3niversity * Pa#istan bc7878779:;

NBP

([email protected]) 98

2nne5es

98 6irtual 3niversity * Pa#istan bc7878779:;

NBP

([email protected]) 9E

9E 6irtual 3niversity * Pa#istan bc7878779:;

NBP

([email protected]) 9;

9; 6irtual 3niversity * Pa#istan bc7878779:;