15

15

PREPARED FOR:

Mr. SADIR ZAIDI

Director DEPARTMENT OF ECONOMICS AND BUSINESS MANAGEMENT

PREPARED BY:

MUHAMMAD RIZWAN

MBA (Life sciences)

Roll # 49

Semester IV

DATE OF SUBMISSION:

October 14, 2009

15

Executive Summary

This report is based on internship in National Bank of Pakistan Sangla Hill Branch. It is a famous and

reputed bank of Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. It

is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's

economic growth through aggressive and balanced lending policies, technologically oriented products and

services offered through its nationwide branches. This report is based on the activities which are performed

in this bank. This report contains information about NBP’s board of directors, mission, SWOT analysis, of

National Bank of Pakistan. There are also stated the activities which I performed during my internship in the

branch. The problems in this branch are also discussed.

ESTABLISHMENT:

National Bank of Pakistan was established under the National Bank of Pakistan ordinance 1949 and it

came into existence on November 20, 1949 since then, it has expended its network, becoming the largest

commercial Bank of the country. Its main aim was to provide all types of banking services to the government

and private sector. The bank also handles treasury transactions for the Govt. of Pakistan as agent to State

Bank of Pakistan. It offers different products of services to its customers.

15

TABLE OF CONTENTS

ContentsResearch Methodology.....................................................................................................................................................5

Mission Statement...........................................................................................................................................................6

HISTORY OF NBP...............................................................................................................................................................7

BOARD OF DIRECTORS......................................................................................................................................................8

Learning during internship...............................................................................................................................................9

Operation department:..................................................................................................................................................10

Computer Department:..................................................................................................................................................13

SERVICES........................................................................................................................................................................14

NBP Student Loan Scheme.............................................................................................................................................16

SWOT ANALYSIS.............................................................................................................................................................18

LEARNING AS A STUDENT INTERN:.................................................................................................................................22

Bibliography...................................................................................................................................................................26

15

Research Methodology

The report is based on my six weeks internship program in National Bank of Pakistan. The methodology

reported for collection of data is primary as well as secondary data. The biggest source of information is my

personal observation while working with staff and having discussion with them. Formally arranged

interviews and discussions also helped me in this regards.

Primary data:

Personal observation

Interviews of staff

Secondary data:

Manuals

Journals

Magazine

Annual reports

Internet

15

Mission Statement

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 core values.

　

15

HISTORY OF NBP

The NBP was established vide NBP Ordinance No. XIX of November. 1949. British Govt. devalued its

currency in September 1949, India devalued its rupees but Pakistan did not. It led to a crisis in trading

between the two countries and India refused to lift the Pakistan Jute. To solve this problem i.e. to export jute

NBP was established through an Ordinance of GOP. National Bank of Pakistan maintains its position as

Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner

for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through

aggressive and balanced lending policies, technologically oriented products and services offered through its

large network of branches locally, internationally and representative offices.

The Bank in 1950 had one subsidiary ‘The Bank of Bahawalpur’ on December4, 1947 by the former

Bahawalpur State.

15

BOARD OF DIRECTORS

NAME DISIGNATION

Ali Raza

Chairman & President

Dr Waqar Masood Director

Ifthikhar Ali Malik Director

Syed Shafqat Ali Shah Jamoti Director

M Zubair Motiwala Director

Sikandar Hayat Jamali Director

M. Khalid Malik Director

S.M. Rafique SEVP & Sectorary to BD

15

Learning during internship

During the period of my internship program I work in the different department of the National Bank.

INTRODUCTION OF THE BRANCH

Sangla Hill Branch is an old branch of national bank of Pakistan. It is followed the instructions and under

control in regional head quarter (Gujranwala).

In public they deal in two accounts i-e.

1. Current Account

2. PLS Account

They provide lot of services like.

1. Deposits

2. Advances

3. Pension

4. Utility, bill, traffic challan, admission of AIOU.

5. Locker’s Services

6. Western Union 　

15

Operation department:

DEPOSIT DEPARTMENT:

It controls the following activities:

a) A/C opening.

b) Issuance of cheque book.

a) Current a/c

b) Saving a/c

c) Cheque cancellation

d) Cash

Accounts Opening:

During my first two weeks in the bank I did work in account opening department.

During my training in that department I was taught that how to open the account of the customers in

the bank. That whenever a customer comes how he should be explained about the types of accounts and

the benefits provided in each Account. My supervisor used to tell me that how to fill the form of account

Opening, and which documents are required for opening the account, the information’s and all.

But I didn’t have the opportunity to enter the accounts opened on daily bases in the software system because

it’s a very sensitive issue and I was not so much trained that’s why I used to only fill the forms and do

stamping on them.

At NBP it’s very easy to open an account just an introducer and a copy of NIC is required. Customer just

needs to fill up account opening forms and can enjoy the facilities of any type of account the want. This is the

strength of NBP facilitates all of its customers.

15

Documents require for opening an account:

This form contains:

A signature card

Requisition slip

The main account opening form

Acknowledgement

Know your customer profile

These all forms will be filled by the customer and following things will be required

from the customer to attach with this form:

A copy of NIC

A copy of job evidence or contract or student id card copy

If the customer wants to change his signature on the account opening form then

he has to fill another form.

The minimum amount of money for opening account is Rs: 100, which has to be

deposited by the customer at the time of account opening.

Those people who are not literate do not need to do a sign; they can give their

Thumb impressions instead of Signatures.

After a few days the Bank send or mails another copy of Letter of thanks to the

customer as well.

15

THE TYPES OF ACCOUNTS The different types of accounts offered by NBP are:

PLS saving account (profit and loss saving account):

Current account:

CURRENT ACCOUNT:

NBP offers current account facility for individuals as well as institutions and

Commercial customers.

Current accounts are also called demand liability on current deposits. NBP pays practically no interest on

current deposits. Businessmen usually open current accounts. In NBP current account can be opened with a

minimum amount of Rs.100/-.

PLS SAVING ACCOUNT:

NBP offers PLS savings account facility to it’s customers with the

attractive features.

Profit and loss sharing deposits (PLS) are also called checking accounts. One can deposit and draw money

easily. Profit on PLS is calculated every month but paid after six months. PLS account can be opened with a

minimum amount of Rs.100/-

REASON FOR CLOSING THE CUSTOMER’S ACCOUNT:

The banker may close the account of the customer due to following reasons:

i. Customer Request

ii. Death of a Customer

iii. Court order

iv. Having zero balance till six months

15

CHEQUE BOOKS AND LOCKERS:I also spent two weeks in this department. I learned to send cheques book and lockers request

of the customers. And I also learned to issue them cheques books and to operate lockers. Whenever any

customer used to come to collect his or her cheques book then I used to take his sign on the record

register, do stamping, write date of issuance, match his sign with sign card and then provide him his

cheques book. It was also my duty to explain him the working procedure, so that if any customer had

any query in his mind he could ask me the details.

CHEQUE BOOK

Cheque books are issued after three days of opening of account, books reissued on request of the customer,

customer has to submit a request form for issuance of another cheque book.There are many types of cheque

books, the first one is of 100 leaves and the second one is of 75 leaves and third one is25 leaves & last one is

of 10 leaves.

ISSUENCE OF CHEQUE BOOK:Whenever a person opens an account with NPB, then he is issued a cheque book.But for his purpose

he has to fill a requisition slip, and then he gets his cheque book. There is also another requisition

slip inside each cheque book, which is used for the purpose of reissuence of a new cheque book if

the leaves of first cheque book start finishing. There is written the title of account holder, his account

number, the stamp of NBP and the A/C of the person on every page of cheque book and also

on the requisition slip.

Computer Department:

This department headed by the accountant Tariq Afridi and two other persons Mr. Junaid and Mr. Shahid are

performing the real function.

The objective of this Department is to facilitate customers in payment of their cheques”.

15

The main functions performed by this department are:

Checking balance.

Deduction from balance on clearing cheques.

Issuing bank statements.

Dealing Western Union.

SERVICES

CLEARING CHEQUESThis department receives the cheques and other negotiable instruments drawn on local branches of other

banks. NIFT(National Institutional Facilitation Technologies (Pvt.) Limited) has a clearing house, in which

cheques and other negotiable instruments are brought by each local bank representative and the claims of

each bank on other is offset and a settlement is made by the payment of difference. Clearing system is helpful

for both the customers and bank in saving money, time and labor.

UTILITY BILLS:

All branches of NBP collect utility bills of electricity, gas and telephones. For convenience of the customers,

utility bills are collected by the branches during banking hours and also in the evening-banking on all

working days. Bills can be paid through cash or cheques.

Utility Bill Charges

Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job despite this working

resulting in a loss to then Rs 3 to5 per transaction. These charges should be increased to RS 10 per bill to

enable the branch to cover their handling costs and make some profit.

15

Lockers:

Lockers facility

National bank of Pakistan also provides locker facilities to its customers to

keep their valuable assets in it. Locker holders need have an account in the

bank. The customers get back the security fees when they close their

locker facility by the bank.

Annual locker rent

4500 security & 2500 /annum as fee for one locker

Eligibility for using lockers

Must have an account in NBP

SHORT TERM INVESTMENTS

NBP now offers excellent rates of profit on all its short term investment accounts.   Whether you are looking

to invest for 3 months or 1 year, NBP’s rates of profit are extremely attractive, along with the security and

service only NBP can provide.

15

NBP Student Loan Scheme

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech, a

STUDENTS LOAN SCHEME (SLS) for Education was launched by the Government of Pakistan in

collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the

Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who have

financial constraints for pursuing their studies in Scientific, Technical and Professional education within

Pakistan.

The Scheme is being administered by a high powered committee comprising Deputy Governor, State Bank

of Pakistan, Presidents of the commercial banks and Deputy Secretary, Ministry of Finance, Government of

Pakistan.

• The objective of the Students Loan Scheme is to provide financial assistance to the meritorious students

of insufficient means who have obtained 70% marks in the last public examination and are unable to pursue

their studies within Pakistan due to financial difficulties.

• Loans facility is available to those students who are nationals of Pakistan including Northern Areas,

Federally Administered Tribal Areas and Azad Jammu and Kashmir and of age not exceeding 20 years for

graduation, 30 years for post-graduation and 35 years for PhD at the time of admission.

• The maximum period of repayment of loan is 10-Years from the date of disbursement of first

installment .The borrower shall repay the loan in monthly installment after six months from the date of first

employment

or one year from the date of completion of studies, which ever is earlier

• Loan is granted only to those students who have been admitted to the approved under noted Affiliated

Colleges /Universities.

15

• Under the Scheme, loans are available in the following subjects.

Engineering Mathematics

Electronics Other Natural Sciences

Oil Gas & Petro-Chemical Technology LL.B

Agriculture Economics, Statistics and Econometrics

Medicine Business Management Sciences

Physics Commerce

Chemistry Biology, Molecular Biology & Genetics

Computer Science/Information System and Technology including hardware

 

15

SWOT ANALYSIS

Strengths

Western union facility:

National Bank of Pakistan is only one bank which has the facility of Western union. In this particular scheme

money is transfer in Pakistan from abroad. This is the fastest way to money transfer. You can receive the

money from bank to see the name and password of particular client.

ATM finder:

There is also strength of NBP that they are foundthe ATM. They now provide this facility to the customers.

Government’s bank:

In commercial banking system NBP is only the government bank. They make their policies according to the

government’s rules and regulations. It enjoys its position in the market of banking system in Pakistan.

Government of Pakistan also facilitating the National Bank of Pakistan.

Customer satisfaction:

15

Because of government’s bank, it is enjoying the customer’s satisfaction. Customers feels secure their money

in NBP.

Onli ne banking:

There is also strength of NBP that 130 branches are online. It helps the speedy services giving to the

customers. There is also help in checking the balances and daily transactions just at one key press.

Employee’s loyalty:

Employees are very much loyal to NBP. Employee’s turnover is very low in NBP. Very few employees are

leaving the jobs in NBP. So it is very big strength that your employees are loyal to your organization.

Wide area of services:

They provide the wide area of services. They offer no. Of services relating to the banking system like,

pension to retired government employees, traffic challans, fees received of AIOU, farms of AIOU, utilities

bills, deposits, sales tax , withholding tax, property tax, and various loan

schemes.

Weakness

15

Lack of communication between employees:

During the internship in NBP I found the problem of lack of communication between the employees and

management. They have not very much understanding with each other and not share the work of each other.

Punishment is not very strong for employees:

Punishment threat is not very strong for employees. Some employees are not very professional in their field

but top management not takes the action against such employees.

Public dealing is not very effective:

Public respect is not very effective in NBP. Employees are not taking care of the customers, especially in

pension and bills department.

Staff shortage:

There is also weak point for NBP that staff is very short and more staff is required to meet the needs of the

branch work. They help from internees.

Lack of respect of seniors:

They are not a healthy sign for NBP that respect of seniors is not up to the manners.

Juniors try to avoid the seniors and no take the help from them.

Opportunities

Growing banking system:

Nowadays banking system is growing quickly so NBP have opportunities to improve the standard and get the

more share in the market.

NBP have government back:

15

In growing era there is a chance for NBP to improve itself and increase the shares in the market because it is

most trustable due to government’s bank.

Increase in economic activities:

The economic activities are increase nowadays, so banks are contributes more in economic activities. Banks

are played role in trade and commerce. So the business of commercial banks is increase.

Threats

Increase in no. of banks:

Increase in no. of banks is a threat for National Bank of Pakistan. No. of private banks (commercial and

private) are operating their business and provide the same facilities. So increase in no. of banks is a threat for

NBP.

Modern type of banking:

Modern and computerized banking is required to fulfill the customer’s need. So maximum branches of NBP

are worked in old traditional ways.

Highly skilled people and management required to meet the new standard of banking. In NBP

some employees are totally irresponsible and lack of complete knowledge of banking system. So these

employees are creating continuous problems in the system of NBP.

The whole structure change to online :

NBP have wide network of branches. Only 130 branches are online, so it is very difficult and time consumed

to convert all branches to online system. So there is also risk involves that if one commuter of one branch

suffers in problem, all system and all commuters of all branches must be turnoff.

15

LEARNING AS A STUDENT INTERN:

There are following learning points for me in the bank.

Duties

In my first two week I worked on opening of account.

In these weeks I learnt how to open an account in the branch, it is a procedure and after it bank open an

account.

In my third week in NBP, they assign me worked in deposit department.

Accountant Mr. Qaisar trained me very nicely and I learned lot of things in this department.

In fourth week

I learn how scroll the challan of Government and pass vouchers.

In fifth week

There are busiest days of pension department so I help the pension manager.

In sixth week

I performed following activities:

Monday

On this day I perform the duty on the seats where following work is being done,

15

Opening an account

Cheques send for clearing

Along with this task I also enter the daily post letters in the letter register. This is very busy task is bank. I

help the officer in this seat.

Tuesday

On this day I join the duty with passing cheques of PLS A/C. There are fifty three books of signatures cards

of A/C holders. So I find the A/C in these books and then gave to the executive officer to verify. In this

whole day I perform this particular task.

Wednesday

Issue new cheques books

Thursday

Mr. Zaman assigns me the task to rearrange lockers list and set them in a sequence and print them on pages.

Particular are these,

Name

Address

Amount of rent

Security

Expiry date

Locker no

Key no

15

Folio no

Friday

On Friday the accounts holders of expired lockers are checked. Some have balance in their account but most

of them have non in this branch. Rent from those holders how balances have has been deducted from their

accounts through vouchers and to remaining holders reminding letters have been sent. This is the end of

Friday.

Problems faced by branch:

During my internship at Sangla Hill branch of national bank of Pakistan, there are following problems I have

found which are directly affect on efficiency and performance of the bank. There problems are also called as

an internal problems. So these are discussing below.

Lack of communication among the employees:

During the period of my internship I found this problem as a biggest problem that, they are not very effective

in communication between themselves. They do not share the experience with each other and do not care the

other employee. If one employee has a problem, then he asked to other, but he does not give clear solution to

that problems. They are shows the facial expressions against each other. Pension manager and other

employees are always tried to gain cash/performance award and use the references to get it. They are talk

against each other in front of me. So finally it is very needy for a public services organization to keep

atmosphere friendly among the management and employees. National bank of Pakistan is lack in

communication skills among the employees.

Ineffective public dealing:

15

There is also a big issue that they think its government’s bank so it does not care customers. It is a wrong

perception. There must be a good public dealing in public service organization. If one customer asked a

question twice. They angry on him and stop working. I personally experienced in cash department. The

cashier (Mr. Zaman) have no respect to the old customers and he used wrong wording against them same is

also happened in bills executive in bills (Mr. Shabir) is also angry on Customers, when they asked question

twice, so there should be solve this problem to create a good environment of the NBP.

Lack of commitment:

Lack of commitment is also a problem faced by the national bank of Pakistan (Sangla Hill branch).

Employees are not committed to the work and their duties. This is very common problem.

Low Efficiency of employees:

Efficiency of employees is also low at this branch.

Not very regular and punctual:

Regularity and punctuality shows the character of a big and good executive. But this problem is also faced by

the NBP (Sangla Hill Branch) many executive not come at time.

Lack of computing skills:

Computing skills are also low, some executive are very efficient in computing skills but some are not totally

aware from this system.

Problem encountered:

During my internship in this bank, the problem which I faced that was proper training. They do not provide

the proper training to the internees. They assign the intern only few seats in the bank.

15

Bibliography

www.nbp.com.pk

Mr.Imtiaz Ahmad Branch Manager

Mr. Qaiser Account officer

Mr. Zia Ullah operation manager

Mr.Saif pension officer

Mr. Shabir bills officer