Internship Report Nation Bank Limited 03

8/4/2019 Internship Report Nation Bank Limited 03

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INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

MAIN BRANCH SWABI (0406)

SUPERVISED BY

SIR FAHEEM ZEB

SUBMITTED BY

KAMAL AHMAD

ROLL NO: 19058

MBA (FINANCE)

SEESION 2009-11

DEPARTMENT OF MANAEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA


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INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN

MAIN BRANCH SWABI (0406)

Internship Report Submitted To the Department Of Management Sciences

for the Partial Fulfillment of the Requirements for the Degree of Master of

Business Administration

DEPARTMENT OF MANAEMENT SCIENCES



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COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES



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DEDICATION

I dedicate my efforts and hard working to my beloved parents, respected

teachers and great friends whose love, Prayers and supports have a great

contribution in my carrier development.

Kamal Ahmad


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PREFACE

This is a compulsory obligation of MBA (Finance) program to complete an internship in

finance and give report on its activities. This requirement provides me a chance to

explain the student of MBA with practical working of an organization.

Apparently, NBP being a large organization of Pakistan became the best choice for me. I

performed my practical work of about two months in NBP Main branch SWABI. During

my internship I was rotated in different sections of finance & advance department and got

some understanding of their operation and procedures.

The staff of NBP was very much supportive to me. They provided me with guidance and

related material to write a report. I feel satisfaction to convey my sentiments that it was

got a lot time in my career.


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AKHNOWLEDGEMENT

First of all on the completion of my report I am very thankful to all those people and their

sincere cooperation that they provide on various stages. The problem which is faced by

every student is the selection of a report. I am very thankful to my honorable supervisor

Mr. Faheem Zeb and Asad Shah Jahan for helping me in the time of uncertainty. During

the execution and preparation of my report. I had a real chance to learn from his huge

knowledge and vast experience.

Then I am very thankful to all staff members of national bank main branch SWABI they

guide me and provide me valuable information which helpful in the preparation of my

report.

Finally I am very thankful to almighty Allah who gives me strength to complete my task

successfully.

Kamal Ahmad

MBA (Finance)


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IV

TABLE OF CONTENTS

Dedication I

Preface II

Acknowledgement IIITable of Contents IV

Executive Summary VIII

Chapter 1: Introduction of Study 1

1.1 Introduction 1

1.2 Purpose of the Study 1

1.3 Scope of Study 1

1.4 Objectives of the Study 2

1.5 Limitation of the Study 2

1.6 Benefit of the Study 31.7 Research Methodology 3

1.8 Scheme of the Report 4

Chapter 2: Evolution of Banks in Pakistan 6

2.1 Introduction 6

2.2 Definition of Bank 6

2.3 Evolution of Banking in Pakistan 7

2.4 Banking Growth during (1948-1970) 7

2.5 Nationalization of Banks (1974) in Pakistan 9

2.5.1 Islamic Banking Comes in Banking Sector 11

2.5.2 Disinvestment and Deregulation of Banking 12

2.5.3 Interest Free Banking 12

2.5.4 The history of National Bank of Pakistan 12

2.5.6 Objective of National Bank of Pakistan 14

2.5.7 The Board of Director of National Bank of Pakistan 14


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Chapter 3: Departments of NBP 15

3.1 Introduction 15

3.2 Clearance Department 15

3.3 Advances Department 15

3.4 Remittance Department 16

3.5 Human Resource Management 18

3.6 Deposit Department 18

3.7 Foreign Exchange Department 20

3.8 Traveler Cheques 213.9 Ail Transfers 213.10 Trade Finance 213.11 Departmentalization 233.12 Receipt 243.13 Payments 24

Chapter 4: Financial Analysis 26

4.1 The five year performance glance of a National bank of Pakistan 26

4.2 Ratio Analysis of National Bank 27

4.3 Those parties which is interested in the ratio analysis 27

4.3.1 Trade creditors 27

4.3.2 Suppliers of long term debt 27

4.3.3 The investors 28

4.3.4 Management 28

4.4 Ratios Analysis 28

4.5 Summation 37

Chapter 5: SWOT Analysis of NBP 38

5.1 Introduction 38

5.2 Strength of National Bank 38

5.2.1 Oldest Institution 38

5.2.2 Alternate Duties in SBP Absence 38


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5.2.3 More Deposits than Other Banks 39

5.2.4 Employees Benefits 39

5.2.5 Broad Network 39

5.2.6 Strictly Followed Rules & Regulation 39

5.2.7 Professional Competence 40

5.2.8 Healthy Environment 40

5.2.9 Relationship between Staff and Other Employees 40

5.3 Weaknesses 40

5.3.1 Lack of Marketing Effort 40

5.3.2 NBP under political pressure 41

5.3.3 Inefficient Employees 41

5.3.4 Inefficient Counter Services during the Rush Hours 41

5.3.5 Insufficient of Computerized Network 41

5.3.6 Insufficient of Modern Equipment 42

5.3.7 Uneven Work Distribution 42

5.3.8 ATM (Automatic Teller Machine) 42

5.4 Opportunities 42

5.4.1 Electronic Banking Services 42

5.4.2 Micro Financing 43

5.5 Threats 43

5.5.1 Emergence of New Competitors 43

5.5.2 Downsizing 43

5.5.3 Customers Complaints 43

Chapter 6: Recommendations and Suggestions 44

6.1 Introduction 44

6.2 Professional Training 44

6.3 Designation of Authority 44

6.4 Performance Appraisal 45

6.5 To Solve the Problem of Space and Furniture 45

6.6 Transfer of the Employees 45


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6.7 Changes in the Policies 45

6.8 Need of Qualified Staff 46

6.10 The Bank Link with the Head Quarter 46

6.11 Credit Cards 46

6.12 Interest on Overdraft 46

6.13 Clean Loans 47

6.14 Cash Financing 47

6.15 Reducing the Administrative Expenses 47

6.16 National Bank needs to be Flexible in the credit Policy 47

6.17 Technological Advancement for National Bank 48

6.18 Staff Relationship 48

6.19 The Distribution Improper Work 48

6.21 Inter Departmental shifting of work 49

6.22 Foreign currency Account 49

6.23 Marketing Policy 49

6.24 There is no Complaints desk for the Customer 50

6.26 Organizational Commitment 50

Chapter 7: Activities Performed in NBP Main Branch 517.1 Issuing Of Cheque Book 51

7.2 Account Opening 52

7.3 Remittances Department 53

7.3.1 Demand Draft 53

7.3.2 Payment order 54

7.3.3 Mail transfer 54

7.3.4 Telegraphic Transfer 55

7.3.5 Deposit Section 55

7.3.6 Pension Section 56

Bibliography 57


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EXECUTIVE SUMMARY

One of the most important functions of the bank is to do as financial agents for their

customer. And get reward which they offer .Bank Performed a key role in the economic

development of the country. A strong economy depends on a good banking system. NBP

is one of the leading banks in Pakistan, and it is consider one of the best banks in south

Asian region. My report consists on the various functions which are performed by

national bank. My report is mainly consisting on secondary data with use of primary data.

My report is objective in nature and gives subjectivity on financial analysis. First part

consists on the evaluation of bank. Function and services in second part. The third part is

about financial analysis and recommendation is given. The NBP is one of the leading

commercial banks in Pakistan which consist of round about one thousand two hundred

branches all over Pakistan.NBP perform various function for his customers. The

commercial banking is stated as a conventional business. One of the major functions of

the NBP is the custodian of the public fund and these funds are safe in the bank. The

banks advance the fund to the needy person and make living. The bank performs all these

function efficiently and effectively.


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CHAPTER # 1 INTRODUCTION OF STUDY

1.1 IntroductionThis is an essential requirement for the MBA degree offered by the Hazara University.

The duration of internship is six to seven weeks. The internship is important for the

student to know about the bank discipline and practice of knowledge of bank how bank

can perform their work.NBP was established in 1949 and expand its network and NBP

become the largest commercial bank of the country and offer different product of service

to its customer.

1.2 Purpose of the StudyInternship main purpose together relevant information about National Bank of Pakistan

Practical work an organization. Develop interpersonal communication.

1.3 Scope of StudyAs an internee of National Bank of Pakistan the main task of my to know general

procedures of national bank of Pakistan .These includes advancing, agriculture loan for

the farmer,remittance,account opening,deposite, foreign exchange. Similarly different

aspects of overall of NBP are also covered in this report.


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1.4 Objectives of the Study

Study of National Bank of Pakistan. To know about the various function and also practical knowledge of National

Bank of Pakistan.

1.5 Limitation of the StudyThis study was conducted in accordance to the objectives of study. In study we may not

include broad explanation of facts and figure due to the nature of study .secondly, the

limitation, which affects the study restriction on mention on every fact of the bank

problem of the secrecy. The availability of required data was a problem in all documents

and file are kept strictly under lock and key due to their strictly confidential nature and

the third problem of short time period also makes the analysis restricted one cannot

analyze all the operation of a bank in a very short time of seven weeks.

Something is better than nothing. No matter how efficiently a study is conducted, it

cannot be perfect in all respects. This study was conducted in accordance with the

objectives of the study. The study may not include broad explanations of facts and figures

due to the nature of the study. Secondly, the limitation, which affects the study, is the

restriction on mentioning every fact of the bank due to the problem of secrecy of the

bank. In addition, the availability of required data was a problem as all the documents

and files are kept strictly under lock and key due to their strictly confidential nature.

Thirdly, the problem of short time period also makes the analysis restricted as one cannot


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properly understand and thus analyze all the operations of a bank just a very short time of

eight weeks.

1.6 Benefit of the StudyInternship will give benefit to the finance student because in bank everything you can

done practically and also the financial analysis of this report comprehensively encompass

all respect of financial analysis. The study of NBP Main Branch and working is an

internee gives me a lot of benefit.

1.7 Research MethodologyThe internship report is based on seven weeks internship program in National Bank main

branch Swabi. The methodology reported for the collection of primary as well as

secondary data. The information is personally collecting by interviewing of all officer

and manager while working as in internee of NBP Swabi main branch .

I. Primary Data:The primary data collect from personally visit to Swabi Main Branch where is Im

working as an internee.

II. Secondary Data:Secondary data collect from manual, magazines, annual report of NBP and internet.


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1.8 Scheme of the Report

SECTION 1

Chapter 1:

Chapter first is an introduction of report, Background, purpose of study, scope,

methodology, limitation, scheme of the report.

SECTION 2

Chapter2:

In this includes the brief history of banking, evolution of banking, Nationalization of

banking in Pakistan, History of National Bank of Pakistan, Mission Statement, and

Objectives function of National of Pakistan.

Chapter3:

In the third chapter departmentation of NBP is explained and the services of NBP of

Swabi main branch (0406).

SECTION 3

Chapter4:

Chapter five includes the SWOT (Strengths, Weakness, Opportunities, Threat) analysis

of NBP.

Chapter5:

In this chapter include financial analysis of National Bank of Pakistan.


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SECTION 4

Chapter 6:

In this chapter we add finding and conclusion

Chapter 7:

In chapter seven recommendation and suggestion of all aspects national bank are given.


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CHAPTER: 2 EVOLUTION OF BANKS IN PAKISTAN

2.1 INTRODUCTION

The word bank derived from the word Bancus or Banque which means a Bench. The

Jews in Lombard transacted the business of money exchange on market place and if the

business failed, the people destroyed the bench. Some of other people opinion about the

bank then German word which means joint stock fund. After that the German occupied

major part of the Italy the word Back is italicized into (Back).The need of bank begin

when it realize importance of money as used as a medium of exchange. When

Babylonian develops the banking system 2000 B.C .Guarantee provide to the borrower or

the pledge of his goods or valuable. Where the people deposited their money and provide

security to the depositor. The bank started his work form the southern Europe Geneva

became and Venice became the most important market .the modern banking start from

the14th century in Barcelona.

2.2 Definition of Bank

A bank is a financial institution which deals with money and credit. The bank collects

money from depositor in low interest rate and gives money to the borrower in high

interest rate. A bank is dealer in between the borrower and lender. The borrower of one

and lends to another.

Take deposits accounts. Take current accounts,


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Issue and pay Cheques Collect Cheques crossed and uncrossed form the customers.The bank includes every person, firm or company is a place of business where the

credits are opened by deposits and collection of money or currency. The subject

of bank is to paid or remitted on cheques, loaned on stocks, bill of exchange,

promissory notes are received from discount or sales.

2.3 Evolution of Banking in Pakistan

The evolution of banking of Pakistan is started when Pakistan is not in stable position.

The banking started his operation in 1947; country possesses full range of banking and

financial institution deal successfully with various needs of the economy. In March 1947

there were 3496 offices of Indian scheduled banks and 487 were in Pakistan. In 1947 at

the partition India and Pakistan country suffer to uncertainty and instability of the

banking sector. So that is the main problem for banking sector of Pakistan. They had

registered their offices in Pakistan. Some bank winding up their business.

2.4 Banking Growth during (1948-1970)

The separation country a committee was immediately setup to formulate scheme of

central banking legislation for Pakistan. Many specialist opinion that the acute shortage

of trained staff, the of establishing a central bank was not workable and the best that

could be attempt was the setting up of currency board until the sufficient stuff that could

organize to operate central bank. The NBP has setup under the ordinance in November

1949.National Bank started his six offices in East Pakistan. Special role assigned to the


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new institution, exact position for the traditional practices and the Governor of the state

Bank of Pakistan appointed to the head of board of director in 1950.To promote the

growth the State Bank and support the government and development of new institution

quickly. November 1952, the national bank of India in a short time afterward, in

November 1952, Governor of state bank an activity for the function as the president of

National Bank of Pakistan.

The state of Pakistan sponsored to the establishment of specialized credit institution in

the field of industry and agriculture. The banking act was passed December 1948 to

control the operation of banking companies in Pakistan. The expansion of banking

services in Pakistan the lack of trained personal and also state of bank of Pakistan

training scheme which repeated in every year and turned out of a large number of banker.

So the first new commercial banking is national commercial bank that is established and

registered organized bank. A completion of ten year working of national of bank

established there were only 195 bank offices in existence. The end of June the bank

offices increased 308, of which Pakistani banks 230 against 25 in mid 1958.The end of

June 1958 Pakistani held 62% of the total bank deposits an responsible for 68 of total

bank credits. Ayub khan government took over in 1958,the expansion of banking system

in Pakistan the first new bank is UBL( United Bank Limited) was established. 1960-65 in

this five year the structure in Pakistan made quickly. The extended and six new offices

they were located in Peshawar, Quetta, Khulna, Rawalpindi, Lyallpur, and Chittagong.

The number of bank 434 at the end of June 1960 to1591 in June 1965.The several new

banks were added in scheduled banks.


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The new two banks is commerce bank and standard bank. The economic growth of

private enterprise the bank credit and private sector increase from Rs.1454 million to Rs

5762 million. The total banking credit expansion during the period amount Rs.4320

million and while the given annual expansion Rs.873 millions. We compared to the

annual average increase from the preceding five year.

Thus the total expansion in bank credit to the private sector during this period amounted

to Rs. 4300 million, which gave a annual expansion of Rs. 860 million compared to the

annual average increase of Rs. 144 million over the preceding five years. Banks deposits

increased from Rs. 2,493 million to Rs. 6883 million during the five years period ended

June 1965 compared to Rs. 231 million in the proceeding five years. The ratio of time

deposited the total deposited in June 1965 the percentage is 49.3 as the percentage in

early 32.04 percentage in early five year. The investment is almost equal to their

advances in June 1960.Remarkable. Change occurred during that period of composition

of deposits. A deposit becomes greater than demand forming about 57 percent age of the

total deposits.

2.5 Nationalization of Banks (1974) in Pakistan

The nationalization of banking in Pakistan (1974) they were difficult 18 months and 10

days of the old government to nationalized the banking system in Pakistan, and the

following main objectives is to enable the government to use the capital in the hand of a

few rich banker for the quickly economic development and the urgent more social

welfare objectives for the country. Divide in to credit into the different region and sector.


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The act of banking in Pakistan is called the nationalization of banking system in Pakistan.

Management and ownership and control on the all the bank standing transferred and

authority in the federal government .under the act of nationalizations the chairman

director and executives of different banks, other than those appointed by federal

government removed their offices and all local persons dissolved. At the time of

nationalizations on December31, 1973 there were only 15 Pakistani commercial banks

and 3328 offices all over in the Pakistan and 78 offices in the foreign countries.

Banks in Country:

National banks of Pakistan

United Bank Limited

Muslims Commercial Bank

Habib Bank Limited

All Habib Bank Limited

Standard Chartered Bank

Bank of Khyber

Bank of Punjab

Soneri Bank Limited

First Woman Bank

Meezan Bank Limited

Allied Bank Limited

Australia Bank Limited

Sarhad Bank Limited


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The 2nd

phase of Banking is on completed 31st

Dec 1974, when the commerce bank

merged (mix up) in the United Bank Limited. Final of banking thats 3rd Phase when the

Standard Bank Limited merged (mix) in the Habib Bank Limited.

2.5.1 Islamic Banking Comes in Banking Sector:

The major development of banking systems is Islamic banking system in the Islamic

banking which free from interest in Jan1, 1981.The effort to elimination of interest from

the operation of National Investment Trust, and House Building Finance Corporation of

Pakistan. The other law that include in the Islamic Banking that is ushering in the new

banking system which confirm is sharia. The Companies ordinance 1980 a new law

Modaraba in comes in the Islamic Banking .The separate free interest comes to operate

all the nationalized commercial banks. The State of Pakistan provides finance against

term deposits and also against Promissory Notes which supported by the Modaraba

certificate. For the purpose to cover interest free transaction certain banking that are

Creditor, advances credits, deposits, and debtor were revised. Private limited company

named is Banker Equity Limited 970 provide financial assistance to the free basis of

interest loan to the industrial sector.

In Islamic banking process different financial schemes introduced:

Modaraba financing. Hire purchases financing. Musharika financing. Specific purpose Modaraba.


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2.5.2 Disinvestment and Deregulation of Banking in

The role of public sector in the economy is extended and the Banking Sector is more

earning potential in the private sector the process of the privatization restarted by the

Muslim League Government in 1991.The Disinvested of Muslims Commercial bank into

two phases while Allied Bank Limited is sold to its employees. In the banking sector

several new Banks were established.

And the still process is going on .National Bank of Pakistan is the government other than

the State Bank of Pakistan. The performance NBP analyzed in the following chapter.

2.5.3 Interest Free Banking:

The interest of free Banking introduced in 1981.The new product and their system of

consumption making Pakistani Banking compare to the other several same function in

any developed world.

2.5.4 The history of National Bank of Pakistan:

The National Bank of was established 9 November 1949. Government of British

devalued the currency in September 1949.India devalued of his rupees but Pakistan did

not .The crisis of both country in trading. To solve the problem that is to expert jute .The

National Bank of Pakistan maintains its position as the premier bank determined to set

higher standard of achievements. It is the major business partner for the government of

Pakistan to the emphasis on the fostering Pakistan economics growth through aggressive

and technological oriented product and services, and balance lending policies and


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services offered through its large network of branches locally and internationally.

National bank of Pakistan was undertaken managing currency Chest or Sub chests and

treasury Operation. The deposits of National Bank of Pakistan are about 3.2 % of total

deposits of all Banks in 1949, which rise 39% in 1952.

The Growth of deposits accompanied is increase in bank portfolio in advances.National Bank of Pakistan lent out to Yarn, Iron, Textile, Steel

Which played a pioneer role in the agriculture system and the commerce.

National Bank of Pakistan advances reached to the Rs.556.5 million in December

1959

which was is the one third of total bank credit.

Mission Statement of National Bank

To make the Bank complete and competitive with all international Standard in

performing, quality of, operations, staff, financial strength. And products and services

to develop a culture of excellence in every spare of activity of the bank.

2.5.4.2 The Goal and Objective of National Bank of Pakistan

To be the pre-eminent financial institution in Pakistan and achieve market recognition

both in the quality and delivery of service as well as the range of product offerings.


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2.5.6 Objective of National Bank of Pakistan

The National bank of Pakistan is also a commercial organization and the main objective

is profit maximization. And can achieve in two ways:

i. . By increasing deposits.ii. . By charging interest on loans provided to the private sector and business

community.

2.5.7 The Board of Director of National Bank of Pakistan

NAME DESIGNATION

Ali Raza Chairman & President

M. Ayub Khan Director

Mian Kausar Hameed Director

Ibrar A. Kirmani Director

Tariq Kirmani Director

Haniya Shahid Naseem Director

Nazrat Bashir Director

S. M. Rafique SEVP & Secretary to BD

(Source Annual Report 2010)


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CHAPTER: 3 DEPARTMENTALIZATION OF NBP

3.1 Introduction

In this departmentalization chapter include the services of National Bank of Pakistan. In

which National Bank offers his services. Its important for the organization to earn profit.

3.2 Clearance Department

The end of 2nd

war the banking system growth very fast .Then the use of cheque is

increase .The clearance performed by state bank of Pakistani. There is no more office of

SBP then it performed by the National of Pakistan. The person who drawn cheque from

the same bank on the payee deposited on the same account of the drawer. And they

remain unchanged because of total assets and total liabilities of the bank.

3.3 Advances Department

The department of advances is the most important department of bank. The function of

that gives the loan to the customer. Advances are more important of for the bank because

it is the major source for the earning profit. The bank takes the surplus money it a lowest

interest rate from the customer and then the advances give it a high interest rate. We

know that the bank is profit seeking institution.


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3.4 Remittance Department

In this department we transfer of money from one bank to another bank or transfer for

one branch to another branch. Mean of remittance when we send the sum of money in

payment for some item.

a) Pay orderb) Mail Transferc) Demand Draftd) Telegraphic Transfere) Call Deposits

Pay Order:

The way of money transfer is pay order which provide by the national bank of Pakistan.

Charges of pay order are low of NBP as we compare to other bank. The charges of pay

order that charge by the national bank Rs.50 on the amount of 50000 thousand and if the

amount is increase from the 50000 thousand. And the charges for the student on the

payment are Rs.25.Its is the best way for money transfer.

Mail Transfer:

If the money not required immediately the remittance can be transfer the Mail Transfer.

The officer of the bank sends instruction in writing by mail to the paying bank for the

purpose of the specific amount of money. The charges of mail transfer minimum charges

is Rs. 42


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Demand Draft:

If you want to send the money safe, fast way sends money transfer. You can purchase

Demand draft at a suitable rate. And every person can purchase Demand draft from

National Bank of Pakistan.

Telegraphic Transfer:

Telegraphic Transfer is the quickest way of money sending. Telegraphic Transfer is an

order of the bank to pay the sum of specific money to the specific person. Vouchers are

prepared and sent through the ordinary mail for the purpose to keep the record. The

charges has been Taken from the customer and no excise duty is on the Telegraphic

Transfer. The use secret Code is known by the branch manager. The charges on

Telegraphic Transfer minimum is Rs.127.

Telegraphic transfer or cable transfer is the quickest method of making remittances.

Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to

the specified person. The customer for requesting TT fills an application form. Vouchers

are prepared and sent by ordinary mail to keep the record. TT charges are taken from the

customer. No excise duty is charged on TT. The TT charges are:

Telegram/ Fax Charges on TT = Actual-minimum Rs.125.

Cable telegram transfer costs more as compared to other title of money. In cable transfer

the bank uses a secret system of private code, which is known to the person concerned

with this department and branch manager.


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3.5 Human Resource Management:

Human Resource management is also important role in every organization. The customer

attitude can be win or loss. And create favorable condition when the attitude is positive

they can good effect on the organization.

3.6 Deposit Department:

In the deposited there are following activities

1) Account Opening2) Current Account3) Saving Account4) Issuing of Cheque Book5) Cancellation of Cheque6) Cash

Account opening:

Account opening its the relationship of customer to the bank. Before the opening of an

account we see the nature of business when we open the account of customer. When

we open the account we can see the following things.

Verification of National Identity Card Service Card Two Picture of Customer Next of Kin


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Specimen Signature Initial Deposit Customer Qualification Operating of Account

Pay-In-Slip Book

Pass Book

Issuing Cheque Book

Current Account:

In Current Account no profit or loss on the deposit and open for the government

employer for purpose to transfer of salary and easily drawn for his account. And the

banker did not any profit on these deposits.

Saving Account:

The saving accounts open with very small amount of money. In this types of account

profit on deposits of customer and not restriction of withdrawn of amount. The profit paid

after six month basis and issued cheque book to the depositor for withdrawn.

Issuing of Cheque Book:

Issuing of cheque book issue by this department and the requirement of check book the

account holder must be sign requisition. And the entry should make in the cheque book.


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Cancellation of Cheque:

Cheque cancel in this department casher see its the cheque sign also cheque the amount

of cheque is this amount is correct or not .And also check the account of person who cash

the cheque.

Cash:

The cash department deals with the deposit, payment of cheque.

3.7 Foreign Exchange Department:

The function of this department mainly deals with the foreign business. The main

functions of this department are:

i. Letter of Credit Dealingii. Foreign Currency Dealing

iii. Foreign Remittance

Letter of Credit Dealing:

Letter of credit dealing is the best way for the money transfer. So NBP is one of leading

bank as we compare to the other bank also provide security, and a competitive rates.

Foreign Currency Dealing:

In this department we deal with the foreign currency such as euro, dollar, and pond.

Foreign Remittance:


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Foreign Remittance is also most important department of NBP.In this department we transfer

of money from one bank to another bank or transfer for one branch to another branch.

Mean of remittance when we send the sum of money in payment for some item.

3.14 Traveler Cheques:A traveler cheque is negotiable which issue by the NBP and there is no limits and

restriction on the period of Traveler cheques. No limit of on the purchasing of Traveler

cheque. It is the safest way of money carrying.

3.15 Ail TransfersAil transfer is another department of National Bank of Pakistan the moving of money of

fast and rapidly through mail transfer. The rate of NBP Can also good is we compare to

the other bank. The exchange rate of NBP is minimum is Rs. 50 and the postage charge

of mail transfer is Rs.75.

3.16 Trade Finance:Trading Finance are two types.

a) Agricultural Financeb) Corporate Finance

Now we will discuss these two types.

a) Agricultural Finance:


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National Bank of Pakistan gives Agricultural loan to the farmer to produce more food

and also uses high quality of seeds for best Agricultural product in the world.

Agricultural Credit:The purpose of the Agricultural loan has two main objectives

Providing trustworthy relationship with Agricultural customer. To use the money for the further development and for more grow of production .And also

better techniques learn for the better production in the country.

Agricultural Credit (Medium Term): To increase Production and development of agricultural need of the farmers. To fulfill the need of water. Increase of Wells. Increase Farm power. Increase the loan for the development of Tea plantation. Increases of Fencing. Use of Solar energy. Equipment for sprinklers.

Farm Credit:National bank also providing loan is three to one year of regeneration bases.

i) Operating loansii) NBP also give loan for the development of Land.iii) Also NBP equipment loans to purchase of tractors and other equipment for the land.


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iv) Livestock loans to purchase feeding for livestock.

Production Loans:Theproduction loan thats all the needs of seeds, fertilizer of farmer covered.

Cash and Gold Finance: These types of loan national bank give against the gold of customer. National

bank takes gold the people for the security of money when they give to the people

who need the need of the agricultural needs.

Advance salary loan:The advance salary always gives to those employ who are the government servants. The

salary loan is up to 15 months.

3.17 Departmentalization:When we divide the organization into the parts so that the function is called

departmentalization of organization

Departmentalization of NBP

Cash Department:The cash department of National Bank of Pakistan performs the following function.


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3.18 Receipt:In the receipt department the money either deposited or drawn from bank and its record

of money should be kept. So this can be performing by the cash department. The ledger

account of every customer is different and separate ledger cards of customer.

3.19Payments:It is the primary contract of the banker to repay money and received for the customer

account usually by worship of his cheques.

Types of Cheques

The banking sector in Pakistan deals with three types of cheques, Bearer cheques, Order

cheques, Cross cheques. Now the explanations of these cheques in detail

a. Bearer Cheques:

In this type of cheque can be cash every person in the counter and collected through

clearance department.

b. Order Cheque:

In this type of cheque can be cash by that person in the name of account holder not

another person can be cash those type of cheque. The bank cheques the sign of Account

holder and then payment on the cheque.


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c. Crossed Cheque:

Cross cheque cannot cash at the counter first the cheque add to the account and then you

cash at the counter .Two person account at the same bank the account holder issue cross

cheque to the favor of another account holder . Then the cheque will be credit to the

account holder who issued the cheque and debited for the account holder who has

actually issued the cheque.


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CHAPTER: 4 FINANCIAL ANALYSISFinancial analysis is unstable according to the exacting interest of the political analyst

which is always involve in the use of different financial statements from the balance sheet

and income statement .Balance sheet is the summary of the assets, liabilities and the

owner equity of a business at the point of a time. And income statement summarizes the

revenues, expenses over the particular period of time. Which is a theoretical framework

for the financial analysis provides to the analyst for the structuring of financing.

4.1 The five year performance glance of a National bank of

PakistanItems 2010 2009 2008 2007 2006

Total Assets 471950 432502 421560 421512 395100

Deposits 395668 375678 365860 353750 347874

Advances 175678 156545 181345 152345 134576

Investment 156784 151238 104567 67453 45238

Share HolderEquity

19456 17345 13765 12453 11678

Pretax Profit 8670 6458 4367 1645 945

After Tax Profit 3456 2845 2378 1656 1234

Earnings per share 9.34 7.56 5.47 4.23 0.91

Return on Assets 4% 2.5% 1.6% 1.07% 0.56%

No of Branches 1745 1453 1343 1267 1179

No of Employees 21345 19876 16768 14576 13789

(Source of annual report 2006, 2007, 2008, 2009, 2010)


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The performance of national bank is higher from year to year and the total assets of

national bank increase as we compare to the previous year of national bank. The moment

is upward if we draw the graph. The branches of national bank are increase if we see the

previous year of national bank because the performance of bank is an increase. If we

compare national bank with other bank the position of national bank is good and now it is

one of the best banks.

4.2 Ratio Analysis of National BankThe ratio analysis tells us about the strengths and weakness of a firm. They can build the

goods relationship among the balance sheet and the profit and loss account and create

making decision for the organization so for the organization used the analytical tools. So

these analytical tools are used by the management which is called ratio analysis. The

purpose of analysis depends upon on the nature of analysis.

4.3 Those parties which is interested in the ratio analysis

4.3.1 Trade creditors

The trade creditor is the first party which is interested in the ratio analysis, because it is

the firm ability to recover their claim as soon as possible.

4.3.2 Suppliers of long term debt

After that the supplier which is interested in the ratios analysis the second party is the

supplier which is interested in the ratio analysis since it is mostly concerned with the

survival and solvency of the firm. And analyze the firm skill to generate cash to pay


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interest. Long term creditors analysis is the historical financial statement to make

analysis about the future solvency.

4.3.3 The investors

The investor is a party which is concerned with the ratio analysis. Because when the

investor invest their money in the firm share investor invests money in the firm share

are most tax which stable the growth for earning. The investor always focused on the

analysis of the firm current profitability and future profitability.

4.3.4 Management

The next important is management that how much successfully use the accessible the

resources or not and also the financial position is sound are not. The management also

needs to receive financial analysis in order to control the plan effectively and efficiently.

4.4 Ratios Analysis

When we comparisons the ratios analysis of a bank then we compare with the balance

sheet and income statement of a bank.


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0

0.5

1

1.5

2

2.5

3

Year 2006Year 2007Year 2008Year 2009Year 2010

Cash Ratio:

Cash ratios shows that the cash have sufficient for to meet the current liabilities or not.

And the cash ratio calculating formula is cash/ current liabilities.

Table 4. 2

Year 2006 2007 2008 2009 2010

Cash 62345687 68976820 76900312 95834219 198970562

liabilities 48954781 49578345 52859305 61065498 75687310

Cash Ratio 1.27 1.39 1.45 1.57 2.63

Graph 1

It means that how much cash on hand to meet the current liabilities. So increase in the

cash which meet the current liabilities.


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Gross Profit Margin Ratio

The gross profit margin shows that how much profit earned in the cash. The formula of

gross profit is Gross profit/ interest earned.

Table 4.3

Year 2006 2007 2008 2009 2010

Gross profit 46835923 48822082 43560690 42503078 44774117

Interest earned 52681679 52665648 5167859137058030

72748697

Gross profit

margin% 88% 92% 84% 78% 63%

Graph 2

Form the calculation of ratios its clear the gross profit margin ratios to the downward

trend also how much they used their deposits to earn the interest. The falling of profit

ratios show that the performance of national not good.

0%

20%

40%

60%

80%

100%

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010


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Net Profit Margin

Net profit margin shows the firm productivity of sales divided by the interest earned after

all taxes and income. The net profit margin can be finding from this formula net profit

after taxes/ interest earned multiply by 100.

Table 4.4

Year 2006 2007 2008 2009 2010

Net profit 11608634 16839284 18456973 16004569 19567303

Interest earned 34578965 43234674 51023839 39253483 78357202

Net profit Margin

% 33.57% 38.94% 36.17% 40.77% 24.97%

Graph .3

The ratio of net profit that calculate we can see that the performance of national bank is

not good in 2010. The downward of trend show that the profit is low per rupees because

the NBP gives us high advances to the people.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Year 2006 Year 2008 Year 2010


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Return on Equity

Return on equity can be calculated when we compare the net profit after tax with the

share holder equity. To find the return on equity we used this formula profit after tax/

share holder equity multiply by 100.

Table 4.5

Year 2006 2007 2008 2009 2010

Net profit 13562920 18349929 18929202 16938282 19836037

Share holders

Equity 38346879 54386590 68758822 82348849 95760792

Return on Equity 35.36 % 33.73% 27.52% 20.56% 20.71%

Graph .4

From the data the return of equity is downward tendency of national bank of Pakistan

because of low net profit they have earned. The earning power of the share holder

investment reducing and could not good impact on the national bank expenditure and role

and order in the country.

0.00%

10.00%

20.00%

30.00%

40.00%

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010


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Return on Assets

Return on assets ratios shows the bank efficiency and how they used their assets

efficiently. Return on assets we calculate profit after tax/ total assets.

Table 4.6

Year 2006 2007 2008 2009 2010

PAT 132476586 187673733 189345775 165635595 195822344

Total Assets 587637337 698347235 756375723 827357538 956221109

Return on assets 0.023 0.026 .025 0.20 0.21

Graph .5

From the calculating of return on assets we can observed that the national bank cannot

use asset effectively so the organization earned low profit. The downward of trend due

the bank cannot efficiently use the investment.

0

0.05

0.1

0.15

0.2

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010


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Debt to Equity Ratio

The debt of equity ratios shows that the how we can distribute the amount among the

creditor and share holders. The formula that we use for finding the debt equity ratio is

total debts/ share holder equity

Table 4.7

Year 2006 2007 2008 2009 2010

Total liabilities 535702957 658842020 724820358 52370951 825727380

Share holders Equity 458038285 49236739 783583838 923547278 802382382

Debt to equity ratio 91.07 89.71 92.78 83.50 80.67

Graph6.

The ratio of debt of equity ratio is not insufficient 2008 is high and in 2010 it is

decreasing. The creditor interest is low the lower ratio and the high level of financing

which is provided by the share holder so the graph is downward.

70

75

80

85

90

95

Year 2006 Year 2007 Year 2008 Year 2009 Year 2010


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Debt to assets ratio

The ratio of this shows that the degree of the organization assets of financed are debit.

And the debt to asset ratio can calculate the total debt/ total assets.

Table 4.8

Year 2006 2007 2008 2009 2010

Total liabilities 579238023 563974038 635603827 724794733 834984933

Total Assets 575725242 646529033 756230332 826680368 936345713

Debt to asset

ratio .83 .84 .81 .844 .843

Graph .7

The reducing of ratio shows that the risk is high the reason is that the deposits in the bank

extra. So the deposits of customer are liability on the bank.

0.78

0.8

0.82

0.84

0.86

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010


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0

0.02

0.04

0.06

0.08

0.1

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010

Assets Turnover Ratio

The association of net sale/ revenue to the total assets is called total assets turnover ratio

and the ratio calculate from this formula total revenue/ total assets.

Table 4.9Year 2006 2007 2008 2009 2010

Total revenue 33692665 43788628 50569481 37058030 77947697

Total Assets 577718806 635132711 762193593 817758326 944232762

Assets turnover ratio 0.068 0.078 0.076 0.084 0.092

Graph .8

The calculation of ratio shows that the bank uses the total assets which can generate the

revenue. So the performance of national bank is better from year to year and 2011 they

can generate high revenue because of using the total assets.


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0

1

2

3

4

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010

Dividend yield:

Probable annual dividend and divided by the market price of the stock. The formula form

which we calculate the dividend yield ratio is total dividend/ market price

Table 4.10

Year 2006 2007 2008 2009 2010

Dividend Yield 2.32 3.09 1.83 2.13 3.89

Graph .9

From the calculating of ratio 2010 dividend is better than from the previous year. 2010

is good because of number of share is excellent but in the 2008 it is decreased reason was

that high market price and low dividend.

4.5 Summation

The financial analysis of national bank we can briefly discussed and also calculating the

various ratios, interpretation of these ratios, and use the different tool and method in order

to reached to the conclusion.


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CHAPTER: 5 SWOT ANALYSIS OF NATIONAL BANK

5.1 Introduction

SWOT analysis is stand for the Strengths, Weakness, Opportunities, And Threats. The

SWOT analysis tells about the organization strengths and weakness what the organization

opportunities are.

In SWOT analyses the best strategies complete an organizations mission by:

a) Exploit the organizations Strength and Opportunities.b) Neutralize the threats.c) Correcting or avoiding his weakness.

5.2 Strength of National Bank:

5.2.1 Oldest Institution:

It is the oldest institution in Pakistan and the first government national bank. The

customer of that bank is more than the other bank in Pakistan. Oldest institution so it is

also positive point for the bank.

5.2.2 Alternate Duties in SBP Absence:

National bank performs his duty very well in the absence of State Bank of Pakistan and

additional services for the customer and also for the other Bank customer.


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5.2.3 More Deposits than Other Banks:

National bank is oldest bank in the banking sector in Pakistan. The deposits of national

bank are greater than the other bank because it is the government bank. The customer can

happily comes and open the account here. And the confidence of customer is increase

time to time so its deposits increase than the other bank.

5.2.4 Employees Benefits:

National bank extra benefits to its employees. Two extra benefits that are given one is on

the Eid-ul-Fitar & the second on Eid -ul- Azha .So this is the additional benefits for its

employees and a foundation for the motivation of his employees.

5.2.5 Broad Network:

National bank his broad network throughout the country .And the branches of national of

bank Is greater than the other bank in Pakistan. So the customer can easily come to the

national bank because its provide services at the nearest place to customer satisfied.

5.2.6 Strictly Followed Rules & Regulation:

The rules and regulation strictly followed the employees of National bank which

imposed by the bank. The discipline wise environment of National Bank is good. The

image of National Bank good impression on the overall organization.


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5.2.7 Professional Competence:

The employees at NBP here have a good hold on their descriptions, as they are highly

skilled Professionals with background in business administration, banking, economics

etc. Professional competencies enable the employees to understand and perform the

function and operation in better way.

5.2.8 Healthy Environment:

The working condition of the employer of National Bank in a favorable condition that

can give better output for the organization. The environment of informal take effects on

the performance of the employer in positive way.

5.2.9 Relationship between Staff and Other Employees:

The relationship of staff with other employees is very good and they corporate with each

other in every matter. The relationship of manager and staff is good so it is also plus point

for organization.

5.3 Weaknesses:

5.3.1 Lack of Marketing Effort:

The bank does not promote its corporate image, services, etc on a competitive way.

Hence lacks far behind in marketing effort .A need for aggressive marketing in there in

the period marketing in now becoming a part of every organization.


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5.3.2 NBP under political pressure:

The political pressure of few parties and government and authority affecting the bank on

the negative way. Sometime it provide loan under pressure, which leads irregular and

adjusted feeling the bank employers.

5.3.3 Inefficient Employees:

The employer of National bank is inefficient because when the customer come to the

bank for the opening account no one here to open the account for the customer so it is

also weak point for the National Bank.

5.3.4 Inefficient Counter Services during the Rush Hours:

Inefficient service during the rush hour in the national bank people waiting on the

window and the staff busy with phone and not working properly. And the staff not quick

to control the during the rush hour.

5.3.5 Insufficient of Computerized Network:

Another weak point of National Bank is insufficient of computer network to fulfill the

need of employees. During my internship always problem on the computer network and

people waiting whole day and also shortage of computer and computer expert to solve the

problem.


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5.3.6 Insufficient of Modern Equipment:

In the national bank where I was working as in internee there is no modern equipment

such as note counting machine for to reduce the wastage of time and note detector for the

currency.

5.3.7 Uneven Work Distribution:

During the workload in National bank the work is not distributed while the other runs

away from their responsibility, which server as a demotivation factor for employees

performing above average work.

5.3.8 ATM (Automatic Teller Machine):

ATM is another weakness of national bank because there is no facility of ATM in

national bank. So NBP focus on this technology to capture more customers.

5.4 Opportunities

5.4.1 Electronic Banking Services:

National bank use electronic bank service and the online banking twenty hour a day.

National bank also adopts new technology to compete the other bank. And national bank

focuses on the new technology for the better performances. Because the world become

global village and in advancement of new technology especially in communication

sector.


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5.4.2 Micro Financing:

Because of the need for micro financing in the market, there are lot of opportunities in

this regard. Other banks have already initiated, now the time has arrived when the NBP

must realize it and take on step to cater an ongoing demand.

5.5 Threats

5.5.1 Emergence of New Competitors:

The bank is facing threats with the emergence of new competitors especially in terms of

foreign banks. These foreign banks are equipped with heavy financial power with

excellent and innovative ways of promoting and performing their services. The bank

has to take initiative in this regard or will find itself far back in competition.

5.5.2 Downsizing:

The bank is currently acting upon the policy of downsizing which threats to the

environment of the bank Employees feel insecurity in doing their jobs and work, hence

affecting the overall performance of employees negatively.

5.5.3 Customers Complaints

There exists no regular and specific system of the removal of customer complaints. Now

a day a need for total customer satisfaction is emerging and in their demanding

consequences customer's complaints are ignored.


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CHAPTER: 6 RECOMMENDATIONS & SUGGETIONS

6.1 Introduction

The national bank is successfully working and earning organization and moving their

activity with particular system and procedure. The major regulatory body which is state

bank of Pakistan, and the head office will operate and the whole procedure. Now I am

suggest and gives some helpful ideas which can improve the performance of national

bank and also increase their profit.

The following recommendation which can be follows:

6.2 Professional Training

The staff of national bank is incompetent and also lack of skill which wants training. And

need of compulsory training which the work accurately. The entire staff member working

in main cities but they cannot perform sound. The banking council of Pakistan should be

start basic program for the staff which provides professional training.

6.3 Designation of Authority

After that give authority to the employees of the bank and given duty that they should be

ask for their responsibility.


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6.4 Performance Appraisal

The manager of the bank should be harshly checked in the performance of every

employees member which works on the organization. And also award on the good

performance in the shape of bonus which have good effect on the work of employees so

they can be work with the full concentration.

6.5 To Solve the Problem of Space and Furniture

To control this problem and my suggestion individual segment must made within in the

organization. Which should be handling only the bank account; salaries and the pension

fund which can be retire from the different organization. The management of the

organization should purchased the furniture and also arrange these equipment in a such

way which provides maximum space and suitable especially for the deposits section so

the customer should easily sit.

6.6 Transfer of the Employees

The transfer of the employees is not properly in my opinion the transfer of the staff which

also good impact on the organization and the regular change of the staff after every five

years. And change to the different banks branches.

6.7 Changes in the Policies

The bank cannot rapid change their policies of the superior management. It the result they

hurt the confidence of the customer so the government can make their long term policies.


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6.8 Need of Qualified Staff

Provide qualified staff in order to improve the functions of the bank. Especially for the

loan advancing which could better guide the customer to take loan from the bank and also

take fresh employees which can better work done and the telephone operator should be

take which can guide the customer on the phone. The branch that i have works as an

internee no one available to pick the phone.

6.10 The Bank Link with the Head Quarter

In my point of view the major branches of national bank should be the directly link with

the head quarter through the internet which can make the decision making management

easier and convenient.

6.11 Credit Cards

The starting of credit card is very helpful for the normal customers in the general and

particularly for the business people. And which make safer to reduce the misuse of it, the

management should also require to.

6.12 Interest on Overdraft

The national bank is also providing interest on the overdraft to its honest customer with a

free from interest. Just national bank charged his commission charges with a very small

amount of markup on the overdraft which can improve the bank profit.


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6.13 Clean Loans

Clean overdraft is another facility that national bank give to the customer without any

security. The small term loan not to extend to anyone, for a moment these loans provides

for the blue-eyed people of the management and they become bad debts for the bank.

6.14 Cash Financing

In these types of cash financing the amount of credit which is not utilized by the borrower

is remained free of tax. The little amount of interest must be charged from this sum

because the bank kept-aside the sum for the borrower and cannot any more advance it

anyplace.

6.15 Reducing the Administrative Expenses

The bank should close the branches which are not used and also the employees of the

bank should also control their expenses. So we can reduce their administrative expense

which gives us positive impact on the future.

6.16 National Bank needs to be Flexible in the credit Policy

National bank is an old organization and its conservative in the advances and loans

policy. National has decreased their assets opportunities so it can give the loan to the

small business organization and also give to the agriculture sector. National banks should

elastic in their policies and give the loan to small business organization low markup rate.


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6.17 Technological Advancement for National Bank

For the better output national bank should computerized their branches. When the

branches are computerized they can speed up the dealing between the banker and the

customer and also give training to the staff foreign exchange, advances and the deposits.

So they can easily the daily record and could be easily entered in it. The technological

advancement is not only reduce the time of transaction but it can also increase the

accuracy. It can reduce the work load of the bank and also decrease the paper work

technological advancement is more important for the bank work.

6.18 Staff Relationship

The good relationship of staff can also important for the increase of better performance of

organization and which can leads the organization into the peak point. When a manager is

absent the whole work is stop no one can perform his work so the relationship of good

with staff they can distribute this work. This is more important for the entered bank and

the whole work would not be stop.

6.19 The Distribution Improper Work

When the work is not properly distributed the organization cannot progress fast so the

distribution of work can make the organization to the top. During my internship in the

national bank main branch Swabi there is no distribution of work operation manager

perform the work of remittance and agriculture officer perform the work of cashier. So

my point of view the distribution of work is most important for the organization.


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6.21 Inter Departmental shifting of work

During of my internship in national bank main branch Swabi the staff of national of bank

some employees work on one seat from many years which can negative impact on the

bank. So my point of view the changing of work is most important for the bank when one

is absent they can the work of this person who is not on the duty. So every two year

change the work of employees so in emergency they can perform the work.

6.22 Foreign currency Account

National bank main branch which Im working as a internee the foreign currency account

which operate by Gul Faraz which is more efficient and intelligent they can dealing very

will and also tell me that foreign exchange is most important now a days so you can learn

this which help in future when working in the bank. So the foreign exchange department

in national bank works very good and no suggestion for this.

6.23 Marketing Policy

The branch which Im working as an internee should adopt a variety of marketing

strategy and promotion strategy they can promote the bank and its product. They can

introduced variety of prizing schemes such as United Bank introduce Omini, Habib bank limited

introduce insurance so national bank should give more advertisement on the television ,

newspaper that people know his products . The advertisement is more important for the bank so it

can think about this which can promote the organization.


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6.24 There is no Complaints desk for the Customer

In national bank main branch which is no complaints desk for the customer who can receive the

complaints and also provide information to the customers .every person shy to go the manager

for the complaint. So it can install complaint box where the customer can get information and

completely guided.

6.26 Organizational Commitment

So my suggestion that employees working on the daily which should gives us more

benefits to the organization and also increase their salaries according to their

performance. So every employees of the bank work hard because of their increasing of

salaries on the bases of efficiency.


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CHAPTER 7 ACTIVITIES PERFORM IN NBP MAIN

BRANCH

Personal Experience:

It is essential requirement for completion for MBA degree in Hazara University. And the

duration of internship is seven weeks. My internship place is national bank main branch

Swabi code (0406). The duration of seven weeks I have worked on the different

departments the staff of national bank main branch Swabi helps on the every department

to learn more knowledge about the bank and also the function of bank. After joining

national bank the manager introduction of myself to other staff member of the bank.

Every staff member of the bank can guide me very will and also tells about the major

function, objects, and future planning of the bank. In the bank a lot of work on the

account opening, voucher, making draft for the customer. All of the staff member proper

time for seeking the bank functions.

7.1 Issuing Of Cheque Book:

Requirement for issuing cheque book is given below

a) The account holder must sign the requisition slip

b) Entry should be made in the cheque book issuing book

c) Four rupees Per cheque should be recovered from a/c holder.

d) If the requisition slip did not available then the bank recovered extra charges from the

a/c holder


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e) The bank available 25, 50, and 100 pages cheque books

7.2 Account Opening:

The account opening is the relationship of banker and customer. Before the opening of

account the Bankers check the customer, National identity card, see the occupation, and

also check the business certificate that what type business the customer doing.

Introduction is necessary because for the following reasons.

1. keep away from frauds2. Protect against inadvertent over draft.3. Negligence.4. Inquiry about the customer.

The certain formalities are necessary for the account opening.

I. Official application.II. Introduction of customer.

III. Specimen signature card for the customer.IV. Initial deposited of customer.V. Operating the account of customer.

a. Pay-inslip Book.b. Pass Book.c. Issuing of cheque Book.


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A. Qualification of customer:Before the opening of account opening officer check the customer qualification.

a) They must be of the age of majority.b) They must be of sound mindc) Law must not disqualify him.d) Not expressly declared void

7.3 Remittances Department:

In the remittance department the money of people transfers from place to another place in

safe way. In the national bank main branch Swabi the remittance done by the Syed

Qurban Ali shah. The main function of this department is

I. Issues of demand draft.II. Issues of Telegraphic transfer.

III. Issued the call deposit.IV. They issues payment order.V. Pension payment of retired employees.

7.3.1 Demand Draft:

Demand draft is a tool that we use for the completing of transfer of money. So the

manager is tell me that how we make the DD and what are the procedure of making

demand draft. The following information that we collects from the applicant.

a) First we asks the name from the receiver


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b) How much transferredc) The place where the demand draft sendd) Also ask to the applicant that which mode you will give money to the bank in the

cash form or we debt from your account

7.3.2 Payment order:

Qaisar shah the manager of national bank tell about the payment order that we make

payment order and the following method that we use in the making of payment order.

Procedure of payment order

Two applications forms called credit vouchers for payment and for bank fee aremade.

The application form is attach with the cheque, debit authority or make paymentin cash form.

After that the payment order is made. After that we give the payment order to the customer. The Pay order again come to National bank of Pakistan for clearing

7.3.3 Mail transfer:

As internee i also know the method of mail transfer and following procedure that I have

followed in the making of mail transfer.

First we fill the application form. Then make the payment. Then we prepare the M.T advice.


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Then the fanfold is made on F15. The M.T advice and fanfold (red copy) is sent to the responding branch. The M.T code is 22.

7.3.4 Telegraphic Transfer:

Then i also learn the process of telegraphic transfer. TT is a cable message which we can

make the transfer of money from one bank to another bank

The following Procedure of Telegraphic transfer

First we fill the request form After that the payment is made. When i was making the message voucher we write the phone on the top of it. The telegram transfer confirmation is made we on the (F-15). Message is sent directly by fax & the confirmation of TT is sent through telegram. Then we fill the F15 blue and the original red is sent to the responding branch. The code of T.T is 21.

7.3.5 Deposit Section

During of my internship i will visit to the deposit section which is very important

department where the customer deposits their money and withdrawal of their money from

the bank. The bank uses this money and give loan on a high interest rate to earn the

profit. The work that i have done the main is that.

First we maintain the record of a saving and then call deposits which I will doevery day.


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Then the record of signature of a account holders Then the customer Record we can balances inquiry of cheques that are issued The order cheques which is Withdrawal Then clear the Local deposits Then I will Prepare the accounts holder activity report every day

7.3.8 Pension Section

In the pension section the following activities are performed

I. Preservation of the pension registerII. After that scrolling of pension paid

III. Preservation of inward mail register

Loan Advancing:

Then i seek the method of loan advancing that how national bank gives the loan of

advancing to agriculture sector and to the former to buy tractor, seeds. Some people give

their the gold to take loan from national bank the duration of this loan is one year and the

national take the interest against the loan is 19.5.

Advance Salary:

During of my internship i also learn the advance salary loan that national bank give to the

government employees. That how national bank gives advance salary and what is the

interest rate charge by the national bank on the amount.


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Bibliography

i ASRAR H SIDDIQUE, (1983) Practice and law of banking in Pakistan; thirdaddition, Royal book Co. Karachi.

ii AVASHTI, & SHAIRAN, (1983) public Administration; sixth addition, New York:MCGRAW Hill Book Company.

iii K. K Dewitt, (1984), modern economic theory, 4rth addition south westernpublication company, Dallas.

iv CHHABRA SHERMAN, (1983) Human resource managing , 7th addition SouthWestern publication company

v CHHABRA T.N (1985), Principles & practice of management; Delhi, D.R printingservices.

vi Daryl R. Conner, (1986), Managing organizational change dangers and opportunitiesreport, O.D resources, Inc, Atlanta, GA.

vii King David, (1987), Money and Banking; London; Edward Arnold press.viiiLusk Edward J. (1979) Financial and management control, A Health care perspective;

USA, Aspen System Corporation.

ix Edwin, b. FLIPPO, (1976), Principles of personnel management; McGraw Hill Co.Tokyo.

x Grant smith, Personnel administration and industrial relations, third addition LungKing tong company limited Hong Kong, 1984, page 349.

Internship Report Nation Bank Limited 03

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