EXECUTIVE SUMMARY

National Bank of Pakistan is the largest commercial bank operating in Pakistan . Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organisation into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold. It has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature . NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan . It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. This report is based on internship in National Bank of Pakistan Civil Lines Branch Gujranwala. It is a famous and reputed bank of Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. This report is based on the activities which are performed in this bank. This report contains functions of Bills and Clearing department, Account Opening, Government section, Credit Department, SWOT analysis, bank tariffs and exchange rates of National Bank of Pakistan. There are also stated the activities which I performed during my internship in the branch. There are also mentioned the way of investment, rates of investment, all types of financing and loans facilities the National Bank of Pakistan provides. The problems in this branch are also discussed.HISTORY OF THE N.B.P

The history of the N.B.P. is part of Pakistan struggle for economic independence. In 1947 at the time of partition the economy of the country was main controlled by non-Pakistanis, most of them were Hindus. This partition of the Sub-Continent brought wide spread disturbance and bloodshed on both side of the border. This resulted in the mass migration of population from. one country to another. In this situation the economy of the country influenced badly.

At the time of independence it had been arranged between India and Pakistan that Reserve Bank of India should act as the common monetary authority for both countries upto end of September, 1948. But the arrangement did not prove satisfactory. In August, 1947, Pakistan had been given a first installment of twenty crore of rupees, out of its shares of cash balance of undivided India to meet immediate requirements. The balance amounting to fifty crore rupees was to be paid later, But when Pakistan demanded that amount, they refused to hand over the money unless Pakistan agreed to give up interest in Kashmir and thus the Government of Pakistan could not agree. This situation occurred, when Reserve Bank of India was functioning as the Central Bank of Pakistan.

As a result of this experience, Pakistan felt it could not place any reliance on the Reserve Bank of India. It was clear that its own central Bank was an indispensable necessity and it was opened by the Quaid-e-Azam on the first of July, 1948. When state Bank came into existence, it claimed its share of the assets of the Reserve Bank of India against the Indian currency, retired from Pakistan territory. But again dispute arose. The dispute is still unsettled and these assets have not been delivered to Pakistan.

Many other disputes occurred between the two countries. As a result of ratio controversy, the regular trade and payments between the two countries came to stand still. One of the immediate consequences of this situation was the withdrawal by Marwari merchants of the India Finance which used to be employed annually for the movement of Pakistan's Jute Crop. A crisis of the first magnitude threatened, because the Jute Crop was already in the market and so their was no money to move it, prices begin to fall precipitously. At that time there was no JUTE in Pakistan, not a single jute loom or spindle and no posibi1ity of utilizing any of the crop within the country. As jute prices collapsed, foreign merchants and foreign Banks to promote agrarian nearest. It was very evident that the Government of Pakistan could not afford to continue as a spectator of these developments.So two ordinance were passed immediately, one setting up the Jute. Board, and the other the decision of establishing of National Bank of Pakistan. The object of the Jute Board was to re-organize and rehabilitate the Jute trade by helping parties to handle it and to stabilize the market. The National Bank was established to provide finance to suitable parties.Thus it came about that The National Bank stood behind the Jute trade, the State Bank of Pakistan stood behind the National Bank and the Government stood behind the State Bank.

OBJECTIVES OF THE BANK

Commercial Banks operate under profit motive and perform various functions in a modern society.

National Bank of Pakistan is a commercial Bank till with socioeconomic objectives e.g. to earn profit and at the same time develop the economy of the country and uplift the socioeconomic status of community. The main objectives of the Bank are as followsMaximum Profit

As the name of the Bank indicates that it was established to finance the nation.As a Business organization its objective is to earn more and more profit by the least expenditures.

Good AdministrationA good administration is an objectives of the Bank. Without proper administration no organization can run successfully. A good administration should have the following qualities:-

a: Quick decision.

b: Correct decision.

Customer ServiceThe main objective of the Bank is to serve his customers. It serves the customers on both directly and indirectly. Bank collects money from an individual, firms, and limited Companies etc. It also gives loan to the people.

DevelopmentsBanks spending large amount of its profit for its own development.Therefore, the large amount of its profit is spent on opening the new branches of the bank and increasing the work efficiency of the Bank.

Expenditure DisciplineBank is trying to minimize its expenditure. So, it keeps strict control over expenditure and avoids wastage of money at every stage. Branch expenditure must not increase more then 15% of the last year's budget for correspondence.

Zonal InspectionEvery branch should be inspected by Zonal inspector at least once a month as directed by Principal Office under B.D. may verify from time to time.

Maximum Utilization of StaffThe staff requirement of the most branches is sufficient. However, services should be utilized systematically for effective functioning.MANAGEMENT AND ORGANIZATION OF A BANK

The management and organizational structure of N.B.P. are described under:-Board of DirectorsIn the management of the Bank, the Board of Directors is at the top of. The controlling bodies.Since there are no private share holders, so there is no general meeting of the share holders and are no elected Directors. The Board consists of a nominated President, a Secretary and 9 other members. After nationalization of Bank in 1974 most of the powers of Board have been transferred to Banking Council and executive Board. The Secretary of the board has limited administrative powers.

Executive Board

The general direction and supervision of the affairs of the Bank lies in their respective Executive Boards.The President, Secretary and 0 other members of the Executive Board are appointed by the Federal Government. The President being the Chief executive of the Board Directors controls and manages the affairs of the Bank.

Chief ExecutiveThe President is the administrative head of a Bank. He presided over the meetings of the executive Board, manages and controls the affairs of the Bank. The President holds office at the pleasure of Federal Government.Divisional ChiefsIn order to improve the management and operation of a Bank, it has been split up into a number of divisions. Each division of a Bank is placed under this supervision and control of Divisional Chief or Senior Executive Vice president (SEVP) or Executive Vice President (EVP).

Provincial ChiefsIn order to improve the performance of the Banking system, each Bank has a PROVINCIAL Chief. The Provincial Chief has the powers for sanctioning finance and other credit facilities. The headquarters of the Chiefs are situated in each Province i.e. Lahore, Karachi, Peshawar and Quetta.

Circle ExecutiveBank has a number of circles. They are placed directly under the supervision and control of the Chief executive. The chief executive is usually SVP or VP.

Zonal HeadsEach circle is divided into a number of zones. Zonal heads that holds the posts of VP or AVP administers these zones.

Branch ManagersEach zone is divided into several branches. The control and supervision of

each branch is mostly entrusted to AVP or Officer of Class II. A few big and

financially sound branches are even administered by SVPS and VPS.

It is important to be noted that the head Quarter of NATIONAL Bank Of

Pakistan is located in Karachi

BOARD OF DIRECTORS

S.ALI RAZA

Chief executive/president

DR.WAQAR MASOOD KHAN

Director

KAMRAN Y. MIRZA

Director

RIZWAN A. KEHAR

Director

A. RAZZAK TABBA

Director

SHEIKH HUMAYUN SAYEED

Director

QAZI FAEZ ISA

Director

Organizational Chart of National Bank of Pakistan

VISION

To be recognized as a leader and a brand synonymous with trust, highest standard of service quality, international best practices and social responsibility. MISSION

BP will aspire to the values that make NBP truly the Nations Bank, by:

Institutionalizing a merit and performance culture.

Creating a distinctive brand identity by providing the highest standards of services.

Adopting the best international management practices.

Maximizing stakeholders value.

GOALS

To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.CORE VALUES

Highest standards of integrity.

Institutionalizing team work and performance culture.

Excellence in services.

Advancement of skills for tomorrows challenges.

Awareness of social and community responsibility.

Value creation for all stakeholdersFUNCTIONS OF NATIONAL BANK OF PAKISTANNational Bank of Pakistan is a commercial bank, so like other commercial banks it is engaged in financing internal trade and also in other ordinary banking business of receiving deposits, advancing loans and discounting bills of exchange. In Pakistan every bank performs functions according to its memorandum and article of association, so according to it the functions performed by National Bank of Pakistan are as: -

Accepting DepositsThe most important function is to receive surplus money from the public. They throw their nets as wide as possible to collect surplus balances of individuals, firms and public institutions. In order to attract funds they have introduced various types of deposit schemes that may suit the needs and tastes of a large body of depositors. The Tijarat Ganj deposits schemes of National Bank of Pakistan are:

Current account

Saving account

Fixed deposit account.

Advancing LoansEvery bank has learnt by experience that depositors do not draw whole of their deposits at a time. They only draw a part of it for day to day transactions, therefore a bank keeps a part of the total deposits as cash reserve to meet the cash demand of depositors and advances the Tijarat Ganj part of deposits to businessmen on interest. They always Tijarat Ganj a reasonable ration between the tow parts to run its business.

National Bank of Pakistan advances loans to businessmen, traders, exporters, farmers etc. these loans are made against document of title to goods, marketable securities, personal security of the borrowers, mortgages etc.

National Bank of Pakistan gives loans in following ways.

By opening a loan account

By means of overdraft

By discounting bills of exchange

By purchasing bond and securities

Creation of The Medium of ExchangeIt is neither safe nor easy to make payment in the form of metallic coin or paper notes; therefore cheques make payments. Almost 90% of the financial transactions are made through cheques. National Bank of Pakistan collects and makes payment of cheques for its customers.

Transfer MoneyNational Bank of Pakistan provides facility to transfer from one place to another at very nominal charges. When a person wants to transfer his money from one place he handover money to the bank and gets a draft at the name of the particular branch were he needs the money and gets money at that place safely.

Agency ServiceNational Bank of Pakistan performs many services as an agent of its clients or depositors. It makes payment on order cheques receives amount of money on crossed cheques issued in favor of its clients and deposits the amount tin their accounts. It receives salaries and dividends of joint stock companies on behalf of clients and deposits them in their accounts. It purchases bonds and shares of joint stock companies for its clients under their consent.

General Utility ServicesNational Bank of Pakistan provides general utility services to its clients as well. It keeps their precious documents, gold ornaments, bonds, and shares etc in safe custody in its locker. National Bank of Pakistan provides the services of clearing the utility bills i.e. electricity, gas and telephone bills of its customer and provide evening banking service.It also advice its clients on investment direction, foreign trade and other business matters.CHEQUES

A cheque is a bill of exchange drawn on a Banker and payable on demand. According to Dr. Hard, "A cheque is an unconditional order in writing drawn on a Banker signed by the drawer, requiring the Banker to pay on demand a certain sum in money to or to the order of a specified person or to learner." Cheque is merely an order on a Bank by its clients to pay a sum of money to himself or to a third party on demand.

There are three parties involve in a cheque:

(i) The drawer.

(ii) The drawee and

(iii) The payee.

The drawer is the person who signs the cheque. The party which is authorized to pay back the money is called drawer. The person to whom or to whos or order the money is to be paid is called payee. A cheque in order to be valid must bear the signature of the drawer. It should be in writing preferable by means of a pen.

KINDS OF CHEQUES

There are three kinds of cheques :

i.Bearer Cheque:

ii.Order Cheque: and

iii.Cross Cheque:

Bearer chequeBearer cheque is that which can be cashed from a Bank by any person who possesses the cheque and presents it at the counter.

Order ChequeIf the word bearer is struck off from the cheque, it then becomes an order cheque. Order cheque is a safe form of payment because it can not be encashed unless it is ascertained by a Bank that it is paid to the right person. If cheque is drawn payable to the order of a specified person the Bank will make the payment only after the identification of the specified person.

Cross ChequeIf the parallel lines are drawn across the face of the cheque and the words "& Co" are written between them, it becomes a crossed cheque. The payments made by the crossed cheque are the safest forms of payments because a cheque can only be deposited in the payee's account or it can be endorsed to somebody's else account by the payee. The crossed cheque can not be cashed when it is presented at the counter of the Banker.

DATE OF THE CHEQUEUndated chequeIf a cheque does not bear any date, the holder of the cheque can insert the date and cheque will quite valid.Post dated chequeThe post dated cheque is, infect, not a cheque because it is not payable on demand. It is equivalent to a bill of exchange, when the cheque is due for payment, the cheque will be honored by the Bank. If a Bank makes payment of post dated cheque before it falls due, the Bank would be liable to the drawer for the amount.Stale and Over due cheque If a cheque is in circulation for an unreasonable period of time, the cheque is said to be stale or over due. Normally, if the cheque is presented six on seven months after the date, it is marked as "Stale" or "out of date". The out of date cheque requires the confirmation of the drawer.Alterations on a cheque

If the drawer is to make changes in the date or amount or in the name of the person then full signature must be obtained on all the material alterations made on the cheque.

Mutilated ChequeIf a cheque is torn in two or more than two-pieces and after pasting the pieces together is presented to the Bank for payment. the Bank would return it to the drawer marked, "Multitude Cheque". If the drawer confirms the mutilated cheque, the Bank's position is then quite safe.

PAYMENT BY CHEQUEConditional paymentA cheque or bill of exchange is not a legal tender money. A debtor, therefore, can not compel a creditor to accept the cheque or bill of exchange as a means of payment. When the cheque is honored and payment is made by the Bank, the date is then effectual discharged.Cheque through the post

If a cheque or other negotiable instrument is sent by post and is lost in transit and is presented and paid by the bank, the loss if any rests on the sender. However, if the creditor requests the debtor to send the cheque by post, than the risk is to be borne by the creditor.Cheques as evidence of paymentWhen the payee receives the amount written on the cheque from the Bank, it serves prima face as evidence of receipt.

THE PAYING BANKERThe obligation to pay: the paying Banker or the drawer Bank is under

legal to honor his customers cheque provided:-a. There is sufficient credit in the account of the customers to cover the amount written on the face of the cheque :b. The cheque are properly drawn:c. Are not stale or over due: andd. There is no legal prohibiting the Bank to make payment.Banker's Authority To Terminate The Payment Of ChequesCountermand of PaymentThe drawer of a cheque can stop the payment of a cheque by informing the Banker either on telephone or through a special message or in writing. The Banker will mark on the orders not to pay or payment countermanded by telegram payment postponed pending confirmation present again: If the cheque has been presented and cashed before the countermand is received in time, the Banker will stop the payment of the cheque even if he was about to pay.

In all such cases, where the payment is stopped well in time, the operative signatures are cancelled and the cheque is returned with a marked "Cancelled in error, payment countermand."Customer's Balance

The Banker can refuse to make the payment of a customer's cheque1 if his balance is not sufficient to cover the cheque. However, if the Bank has allowed the facility of overdraft, the Banker is bound to make the payment provided the amount is within the limit of the overdraft.Cheque is not an assignment of fundsA holder of a cheque can not ask the Banker to earmarl credit balance of the drawer in his favor. If the customer's balance is sufficient to cover the cheque, the payment will be made. The cheque will be dishonored if the Balance available for drawing the cheque is not sufficient. The holder of the cheque can not either have an equitable claim against the drawer Banker.

Payment in due CourseThe Banker will refuse to make the payment of a cheque if:

i. It is not in accordance with the drawers instructions andii. It is also presented after office hours or is not in the ordinary course of Business.

Advising Fate By TelegramIf cheques are presented direct to the Banker or through the collecting Banker with a request to wire fate and the paying Banker's answer is in the affirmative then the Banker has to make the payment even if he receives the countermand of payment written or oral from the Customer.

Marking ChequesA drawer may get a particular cheque 'Marked' from his Banker. The Banker will retain the amount in order to honor the "marked" cheques. If' the other cheques issued by him are not covering his credit Balance, Bank will dishonor them for want of funds.

Forgery of the Drawer's signaturesIf the Banker is doubtful of the drawer's signature of in the alternation of amount the Bank can refuse to make the payment.Notice of Customers DeathThe Banker will terminate the payment of a cheque if he receives the notice of the customer death.

Bankruptcy PetitionIf the customer is unable to pay his debt i.e. he is insolvent, then he or his creditors present as petition to the court to take over the debtors, property for distribution among creditors. If the Bank receives a notice of t he refuse to honor the cheque forthwith.

Making of a Receiving orderIf the customer is satisfied that the customer appears to be insolvent, it will immediately issue a receiving order. The Bank will refuse to make payment on the advertisement of receiving order of its customer in the news paper or on direct intimation from the court.Trust FundsIf the Banker is satisfied that his customer by breach of trust is crediting the trust fund to his account, the Banker may refuse to pay the cheques.Garnishee OrderIf the creditor of Banks customer gets a garnishee order from the court, the customer is not allowed to operate the account by the Bank.Account ClosedIf the drawer has closed his account, the Bank will dishonor the cheque presented to the Bank.

Mutilated ChequesIf a cheque is mutilated, torn or cancelled, the Bank will refuse to debit the account of the customer. The payment on the torn cheque can, however, he made, if it is confirmed from the drawer or from the payees Banker.

Difference in words and FiguresIf the amount stated in words differ from the amount expressed in figures, the Bank will refer the cheque to the drawer remarking: amount in words and figures differs.

Irregular EndorsementIf the endorsement on the cheque is irregular, the Bank will not make the payment on the cheque presented to it.

Lost or Stolen ChequeIf a cheque is lost or stolen and the drawer informs the Bank well ii. time, the Bank will refuse to honor the cheque if presented after the receipt of the notice.

Stop Cheque noteIf a customer informs the Bank orally or verbally for stopping the payment of the particular cheque, the Bank will obey the instructions and will put "Stop Cheque Notice" in red ink in the account of the drawer.Receipt of Notice of IndemnityIf the Bank comes to know that a particular customer has become insane or is of unsound mind and the Bank is satisfied that hi customer is unable to act rationally, the authority of the Bank to act as agent will then cease. If the Bank receives the lunacy order from the court, the cheques will be returned with the remark "refer to drawer.Joint AccountIf there is a joint account the Banker will get definite instructions as to how the account is to be operated upon whether all of them shall operate the account or delegate the authority to one. On the death of any party to a joint account, the balance rests in the surveyor or surveyors subject to an expressed authority on the contrary.

Partnership AccountIn case of a partnership firm, every partner can open an account in his name. But the Banker would not allow until and unless it is signed by all partners, giving the manner of operation. The death or retirement of a partner dissolves the partnership then the Bank should not allow any operation on such an account.Company AccountIf the Company or a corporation wants to open an account with the Bank it would provide a copy of resolution passed by the Board of Directors appointing it as a Banker to the Company, naming the person or persons authorized to operate the account. If any authorized person draws a cheque on behalf of the company, then it would be dishonored.RATIOS ANALYSISEarning Ratios

2008

2009

ROA

1.96%

2.07%

ROE

14.13%

16.41%

ROD

2.54%

2.70%

Liquidity ratio

2008

2009

Current ratio

0.28

0.27Activity ratio

2008

2009Total asset turnover

0.051

0.048Debt Management2008 2009

Debt

0.87 0.87Gross profit G/P Margin

0.99

0.99RATIO ANALYSISINTERPRETATIONAs complete information regarding year 2010. I have done the ratio analysis for the year 2010 in comparison with prior years and now going to declare the conclusion about the National bank of the Pakistan.NBP ROA is increased by 0.11 (from 1.96% to 2.07%) that means the income of National bank is better than 2008.As well as ROE is also increased by 2.28 (from14.13 to 16.41 ).These ratios show that NBP income is being increased year to year. The performance of bank is going to be improved. The share holders equity in order to increase its business capital. Similarly I found a continuous improvement in returns on Capital that reflect that Banks internal growth rate has started increase.

The NBP Liquidity position is not good than previous year. The more liquidity of any business is best for its business. The more liquidity shows that business in good position. The NBP Current ratio is decreased by 0.01 (from 0.28 to 0.27).The ability of the bank to pay its bills as they come due, can be measured by the current ratio.The NBP Asset Turnover Ratio also reduced that is not good for bank because the return on asset has decreased from 0.051 to 0.048 that effects on asset and income of the bank. Total asset turnover measures the efficiency with which the bank uses its assets to generate sales. The more debt a bank uses,the greater its financial leverage which magnifies both risk and return but the debt remain same in both year.Gross Profit Margin of National bank of Pakistan has little bit decreased but the gross profit margin is much better than others banks because its gross profit margin almost .99%in recent year and prior year that is very good for national bank of Pakistan. NBP net income is efficient from other banks thats why its gross profit margin ratio is almost excellent in every year.

DEPARTMENT IN NATIONAL BANK OF PAKISTAN

DEPARTMENT FUNCTIONING UNDER N.B.P Account Opening Department

Deposit Section

Bills Remittance Department

Clearing Department

Cash Department

Credit Department

Foreign Exchange DepartmentACCOUNT OPENING DEPARTMENT

The account opening is the establishment of Banker Customer relationship. By opening an account at a bank a person becomes a Customer of the bank. Number of Accounts and deposit in form of cash are the key indicators for the success of any Bank. So Account Opening Department is the most important department in all banks.This department performs the following functions: To attract the customers in order to open the account.

Give reliable and complete information about Banks products and services.

Give protocol to customers.

To make the position of bank stable.

Increase the deposit of the bank in order to use this deposited money in future investments

Key Features of account opening department

Account Opening Form

Account Opening Form contains all the necessary information about a person who want to open an account in the bank. It contains information about the type of account and nature of account which is going to open, list of documents which are required for partnership and company accounts and general rules and regulations of current account, profit and loss sharing account and foreign currency account.

Introduction

Before opening an account of a customer who is not known to him the banker should make proper inquires about the applicant. He should obtained references and introduction from responsible persons about the identity, integrity, reliability, occupation and nature of business of the proposed customer.Specimen Signature CardWhile opening an account the customer must give a specimen of his signatures on a specific card called specimen signature card (SSC). This sign must appear on all his cheques to express his authority to make payments.Accounts of illiterate personAn illiterate person is not disqualified to open an account in the bank. The extra precautions to be taken in this case.For example banker must obtain passport size photographs and instead of specimen signature thumb impressions of both hands is taken on card as well as on account opening form. An illiterate person must come personally to operate his account.Closure of Account

If balance in current and profit and loss account remains nil for a continuous period of six months then account will be closed after expiry of final notice period, under notification to the account holder.

Dormant & Inoperative Accounts

All accounts which have not been operated upon six months shall classify as Dormant Account. All accounts which have not been operated upon for one year shall classify as Inoperative Account.

DEPOSIT SECTIONDeposits are referred to as the LIFE_BLOOD of the bank. The fundamental function of a commercial bank is the acceptance of deposits. Banks accepts deposits from those who have surplus money in their hands but they are unable to make use of it. When a bank receives a deposit from customer, the relationship of debtor and creditor established whereby a customer becomes the creditor and the bank becomes debtor. The amount owned by the bank must be payable to the depositor on demand or after some time. Deposit Section in a bank deals with the acceptance of deposits and payment of cheques. FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE OPERATED BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits.

1. Current deposits

2. PLS Saving deposits

3. Fixed deposits account (Time Deposit)

4. Foreign Currency Account

CURRENT DEPOSIT

For current deposits NBP open the account in the name of individual proprietary firms, partnership firm, private limited companies clubs, association societies and other institutions. The account can be operated by single or two more persons jointly as the instructions may be given at the time of opening the account.If the person who wants to open the account is not in position to sign or signature is not firm or shaky the bank requires is photographs and he has to come in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the account usual not be less then Rs.1000/ But this restriction is not imposed to the accounts of charitable institutions.

PLS SAVING ACCOUNTS

The salient features or profit and loss sharing saving accounts to be opened in NBP as under.

1. These accounts can be opened by individuals in their own single are joint name. The PLS saving accounts can also be opened for provident fund or other benevolent funds of companies, firms, organizations of welfare and educational institutions.2. PLS saving account can be opened with an minimum amount of Rs. 500/- only3. Money can be with drawn form PLS saving account only through cheque.4. To share in the profit a minimum balance of Rs.500/- must be maintained a account. The minimum balanced on sixth and last of month will qualify for the profits.5. The profit will be calculated on the basis of monthly minimum balance for the period of six months i.e. from January to June and July to December.

6. The head office of NBP determines the profits or loss on PLS saving deposits and advice its branches the rate and time of distribution of these profits concerned PLS saving account.7. The shall be no restrictions on maintaining the maximum balance in PLS saving account.8. On the fist of Ramzan every year the Zakat 2.5% will be recovered from the deposits on the balance of that day. But if depositors give declaration of Zakat or he is non-mulsim no Zakat will be recovered from him in the same day Zakat is not recovered from account in which the balance are below upto prescribed limit as declared by the administrator of Zakat Pakistan Act system of accepting deposits has been stated in NBP since 01-01-1981.

PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSIT A/C1. The PLS term deposit receipt are issued for any amount. There is minimum or maximum limit or deposits in a single term deposit account.

2. The term deposit can be made by tendering cash only.

In the case of fixed deposit account deposit is made for a fixed period and a money deposited can be with drawn before the expiry of period fixed or before giving an advance notice to the Bank. Fixed deposit caries a higher rate of interest than the other type of bank account and the rate of interest rises with the length of the period and the amount of deposit.

One opening a fixed deposit account the bank grants to the depositor a fix deposit (FDR) which is not transferable to any other person. When the depositor with drawn the receipt must be handed back to the bank.

The salient features of profit and loss sharing term deposit excepted by NBP are given as under.

3. The PLS term deposit are accepted from individual in their own single or joint names, companies firms and other organization.4. Under term deposit scheme the depositors not cease to earn the profit immediately, after the respective maturity date, but they have been affording a liberal facility. In case the depositors said to with draw their terms deposits on maturity their funds will remain temporarily in used and on profit earned a responsible share would occur to such over due PLS terms deposits at the rates declared on PLS sharing account.

5. The head office of the bank determine the profit or loss on PLS terms deposit at by any one intervals i.e. the end of June and December each year and payment of profit to or deduction of loss if any from the PLS terms deposit is to be made the deposits for longer period will earn a little more profit then those of shorter period deposits.

6. The total profit upto Rs.950/- is exempted from income tax

7. In the case of encashment before maturity but after completion of months profit will be paid for the entire period for which the deposit remained with bank at the rates payable for the respective period to the PLS saving account after deduction of the Zakat if any.

8. In PLS term deposit expired and the depositors request with in one month after the expiring date, for investment. The PLS terms deposit will be reinvested for the desire period from the date immediately following expiring date.

9. Zakat or the face value PLS term deposit will be recovered as many times as the valuation dates (i.e Ist Ramzan) falls between the date of issue and the date of expiry of the deposit.

FOREIGN CURRENCY ACCOUNT

NBP has also introduced foreign currency accounts for Pakistan and foreign Nation in Pakistan and abroad. This scheme assures its customers on better profit and superior service.1. It offers Pakistani or foreign National to operate a foreign currency A/C with any one of their authorized branches spread all over the country.

2. Deposits of this accounts will be acceptable in all convertible currency but account will be maintained on the customers choice in US Dollar, pounds German Mark or Japanese Yen.

3. Deposits may be made in the forms of remittances in foreign currencies.

Travelers cheque on the bank counter will be accepted.

4. The customer can make with drawls and transfers to any where in the world.

5. All the deposits and profits in the customers foreign account are except from Zakat income or wealth tax.

6. The customers sources are protected from any scruitny of concerned authorities.

The NBP has over 1400 branches at home and abroad of these more than 100 branches are authorized and fully equipped to deal with all kinds of foreign currency transactions.

NBP has worldwide network of branches and it has associated in Arabia bank, All Jazria (26 branches) and national exchange company in UAE to facilitate the customers in Pakistan, Saudi Arabia and UAE.

BILLS REMITTANCE DEPARTMENT

Remittances mean the transfer of money or fund from one place to another place through bank. It may be inland remittance or Remittance

Inland remittance may be classified as:

1. Within locality.2. Out side locality.

Within Locality

When a branch situated in multan road is required to send the draft to any other branch situated in the same locality, the process will say to be within locality. I.e. NBP hall road branch multan road, send any draft to NBP hall road branch, this is known as within locality.

Pay Order

Pay order is used for payment within the cities; the multan road purpose of pay order is to make payment in record this payment in the bank as evidence. Bank charge the commission for its services. The purchaser fill an application form, which includes the amount of payment or order, the name of the payee and complete address of purchaser and payee application form is also singed by the purchaser.

Out Side Locality

Outside locality is an important type of inland remittances. Outside locality means the transfer of money payable outside the city i.e.NBP Tijarat Ganj branch D.I.Khan, sent any draft to a branch situated in Peshawar city. It is commonly done through the following three means.

1. Telegraphic transfer (T.T)2. Mail transfer (M.T)3. Bank Draft.Issuance of Draft

When a person require a bank draft, he should be asked to fill the application form in which he states the amount/money to be transferred, the name of payee and place of payment. After depositing cash and relevant fee, bank issue the bank draft and hand over to the concern person.

Bank draft is usually issued is cross demand draft on which the payee account only is written. The payee will draw the amount by presenting the draft to the bank.

Lost Draft/Duplicate Draft

Bank issue the duplicate draft when the original draft had been lost, till the purchaser of draft informed the issuing branch of the bank, that draft has been lost, the issuing branch of the bank will immediately informed to the drawer branch about the lost branch. The branch will stop the payment of that draft. At the end in the place of lost draft the issuing branch of the bank will issue the duplicate draft.

Cancellation of Lost Draft

If the purchaser of draft to cancel the draft then he is required to submit the original issued draft. After the cancellation of draft the bank pay the cash or credit the purchaser account as purchaser desires. The bank charges a nominal fee for this service or act. Bank also informs the drawer branch about the cancellation of the draft.

Telegraphic Transfer

Telegraphic transfer is an important mode of remittance. It is the quickest mean of transferring the funds from one place to another place by the use of telephone or telegraphic.

Now a day, new technology is used for this purpose i.e. fax, e-mail. The big traders and businessman use this method of remittance in this method of remittance the purchaser is not responsible for the dispatch. HOW ONE CAN APPLY

The purchaser fills an application form and which he mentioned the sum of (T.T) name of payee, accounts number of payee and place of payment etc.

The purchaser signs the application form and the bank charge the commission for this purpose.

MAIL TRANSFER

Mail transfer draft is one of the bank modes of remittance. Mail transfer is issued by one branch of bank to another branch of the same bank by instructing to branch to pay the other branch by issuing mail transfer receipts.In M.T the purchaser is not responsible for dispatch, but the bank will be responsible for dispatch.

How To Apply

The purchaser fills application forms, which includes the amount of M.T name of payee, account number of payee, name of BANK DRAFTBank draft is the most important type of remittance. Draft is an instrument issued by a bank. Draft is issued by one branch to another branch out of the city. The difference branches of same bank can issue the bank draft to each other and it is also called the banker cheques i.e. the Tijarat Ganj Branch of NBP in D.I.Khan issued the draft to the NBP PeshawarCLEARING DEPARTMENTAll commercial banks are the members of the bankers clearing house which facilitates the settling of daily balances due between member banks arising from the cheques and cash transactions throughout the country, whether by the general public or individual banks.

Clearing can be defined as the transfer of funds from one branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving the cash through state banks clearing house.

Clearing house is the place where both the debtors and creditors are different commercial banks and they settle their claims.

There are two types of clearingInward Clearing

It means cheques which are drawn on our bank but are presented to the branch of another bank and on our branch but with in the city. These cheques are handed over to NBP agent in clearing house. Inward clearing results into outflow of cash.Outward Clearing

It means the cheques of another bank, which are presented on our branch by our customers. Outward clearing results into inflow of cash from the payee bank.

CREDIT DEPARTMENT

Lending is one of the most important functions of banks. They collect funds from the public in the form of various types of deposits, and lend and invest them for productive and profitable purposes. It is the loan function which produces the major portion of banks income; and as such it is one of the major areas of professional bankers concern and attention.

Credit Policy

At present National Bank of Pakistan offer following finances to its reliable customers:

Cash Finance

Running Finance

Packing Finance

Local Manufacturing Machinery

Agri. Finance

Small Finance

House Building Finance

Demand Finance

Consumer Finance

TYPES OF ADVANCES

1. Demand Finance

2. Running Finance

3. Cash Finance

4. Small Finance

5. Agriculture Loans

DEMAND FINANCE

These are those advances which are allowed in lump sum for a fixed period and are repayable in lump sum or gradually in installments.

RUNNING FINANCE

Running finance are advances, which are gradually given to meet temporary requirements of the customers. A good customer uses the banks running finance limit, as a mean of protecting his credit in the market and as a line of second defense to meet his commitments. There are two types of running finance:

UN-SECURED

Under this type of overdraft, the bank relies upon the personal security of the customer or customers account.

SECURED

Under this type of overdraft, the bank allows his customer to withdraw more than his deposit after giving security against the amount overdrawn. The securities against which they are given are as under:

1. Share Certificates

2. Savings Certificates

3. Deposits

4. Mortgage Property

5. Guarantee of a person

CASH FINANCE

These types of loans are given against the following:

1. Against locally manufactured goods

2. Cash finance against rice and paddy

3. Against pledge

4. Against commodities

5. Besides advances against the above commodities bank may be approached by parties for advances against other commodities like tobacco, oil, etc.

6. Against Trust Receipts

SMALL LOANS

Loans are allowed to contractors clearing and forwarding agents. These loans are repayable within a year.

AGRICULTURE LOANS

Agriculture loans are given to the farmers with holding up to 25 acres for meeting their short medium and long term production requirements such as:

1. Agriculture inputs

2. Tractors instruments

3. Tube wells

4. Live stock farming

5. Land Improvements

CASH DEPARTMENT

Cash Department is the most important section in the bank. It performs the following three main functions:

Bank payments & receipts

Bank payments means cash payments to those persons who represent cheques and bank receipts includes cash deposits made by account holders.

Government receipts & payments

Government receipts means collection of income tax, property tax, sales tax and traffic challans. Government payments include salary payments to Govt employees and Pension payments.

Collection of utility bills It includes collection of all utility bills which includes electricity , gas and water bills. It also includes ptcl bills. FOREIGN EXCHANGE DEPARTMENT

Imports

We sell our foreign exchange to the other country which is called such as we purchase the foreign goods from the others. Import is done through letter of credit (L/C) by the importer. Letter of Credit is an undertaking given by the importer bank to the exporters bank.

Export

Export is to sell our goods to the other country and earn foreign exchange. The bank provide facilities of exporting the commodities to the manufactures of the goods of the country.

Foreign RemittanceThe bank provides the foreign remittance facilities to the student studying aboard. Bank also provides foreign exchange in the shape of travelers cheques to the intending visitors.

PRODUCTS

of National Bank Of Pakistan

Monthly Income Scheme Minimum deposit of Rs. 50,000 and a maximum deposit of Rs. 5,000,000 for 5 years

Free Demand Draft, Pay Order and NBP Online Aasan Banking*

Free Cheque Book / NBP Cash Card (ATM + Debit) It is PLS Saving Account Minimum saving balance of Rs. 20001 & maximum balance of Rs.300000.

Free NBP cash card(ATM+debit)

Convenience of NBP Online Asan Banking

Two debit withdrawls allow in a month.

President's Rozgar Scheme

If you are aged between 18 and 40 years, you could be eligible for easy financing for self employment in the categories below:

NBP Karobar Utility Store

NBP Karobar Mobile Utility Store NBP Karobar Mobile General Store

NBP Karobar Transport

NBP Karobar PCO/ Tele-Centre

Home Purchase (House or Apartment) * - Product Detail

Financing Amount Upto 35 Million

Financing Period3 to 20 Years

Debt to Equity85:15 (Maximum)

Home Construction * - Product DetailFinancing Amount Upto 35 Million

Financing Period3 to 20 Years

Debt to Equity85:15 (Maximum)

Home Renovation * - Product DetailFinancing Amount Upto 15 Million

Financing Period3 to 15 Years

Debt to Equity70:30 (Maximum)

Purchase of Land and for Construction thereon * - Product DetailFinancing Amount Upto 35 Million

Financing Period3 to 20 Years

Debt to Equity70:30 (Maximum)

Re-Financing (Balance Transfer Facility (BTF)) - Product Detail

If you have a Home Finance Facility outstanding with another bank you can have it transferred to NBP through a hassle-free process.

NOTE :All home financing facilities below Rs. 15 M Debt to Equity Ratio will be 85:15 & for Rs. 15 M and above Debt to Equity Ratio will be 80:20.*50% of the loan will be disbursed at the time of land purchase and rest of the 50% for its construction will be disbursed in 4 tranches.

In January-2003, National Bank of Pakistan has launched a unique product, NBP-Advance Salary. Currently this product is for fixed-income permanent employees of Federal & Provincial Government, Semi-Government, Autonomous, Semi-autonomous, local bodies and other Government organizations. The product is purely cash flow based and offers its holder to avail 20 (twenty) net salaries in one go to be repaid in up to 60 (sixty) months. With no collateral, insurance or requirements, Advance Salary provides rapid disbursement in a short turnaround time.

Meet your need for ready cash against your idle gold jewelry with no minimum limits Rate of mark-up 12% p.a.

Facility of Rs. 30000 against each 10 gms of net contents of gold

No maximum limits of cash

Repayment after one year

Only gold ornaments acceptable

Weight and quality of gold to be determined by NBP's appointed schroffs

No penalty for early repayment

Roll over facility

SWOT ANALYSIS

An analysis indicating towards organization strengths, weaknesses, opportunities and threats is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and craving ways to successful tackle with the threats and ultimately converting them in the strengths for the organization

During eight weeks of my stay, I have come across the following SWOT analysis of the bank

STRENGTHS

Strengths are those activities the organization does well or the unique resources that it has. The strengths of SPCBL are given as follows:

The Keeping Of A Good And Modest Environment During Business Hours.

The bank has a good team of customer relation managers and customer relation officers to help the people.

Systematic working operations.

The credit administration department enjoys a staff of very good business executives who attract and analyze people in a very good manner.

A good dressing of employees and their attitude towards the people

A Good System Of Communication Flow Is There

The Keeping Of A Good And Modest Environment During Business Hours.

The Commitment Of Employees Towards Secrecy.

WEAKNESSES

The internal issues include certain weaknesses which are discussed below:

There Is Lack Of Proper Advertising.

Higher Charges of Some Services As Compared To Some Other Banks.

All Branches are not On Line

No ATM facility available

Employees turnover is higher.

All Branches are not dealing in foreign exchange.

OPPURTUNITIES

Stronger and deeper relationships with existing and potential customers.

Cross selling of other Union Bank Products.

Committed employees due to payment of higher salaries.

Government patronage

A good job recruitment policy of hiring business graduates.

THREATS

Pakistan Is A Developing Country And Our Debt-Burdened Economy Is A Major Threat For The Banking Business.

High probability of competitive reaction

Foreign banks may increase marketing support and aggressive sales drive.

Launch of similar products by large nationalizes banks with extensive distribution network.

Political Condition

The Employee Turnover Can Create A Serious Problem For The Bank.

RECOMMENDATION

During my internship of Six Weaks at the Multan Road branch Lahore. I observed a lot of things and there is always a better way of doing things. Some of the recommendation suggested for the Multan Road branch, and National Bank of Pakistan as whole are as follows.

Required staff should be provided to branch in order to improve the functioning of the branch to reduce the workload on the staff members.

Computer should be introduced in all the branches and department of the bank. This will reduce administrative cost to great extant. Branch should be connected through computers with Zonal/regional office and headquarter. This will help a lot in the operation of the bank computer knowledge should imparted to the employees. Communication and coordination problem will be solved to greater extent.

Recruitment in the bank should be made purely on merit basis, and the human resources development should be fully free from any influence of higher authority and staff union in conduction of test and in the selection of candidates.

There should be inter department transfer of employees, so that they should know about all departments, in this way a proper coordination could be achieved. They must have some basic information of other departments. There must be proper job rotation.

The training programme of National Bank of Pakistan is not adequate. Special marketing training should be given to employees who are concerned with marketing. The training programme should include scientific techniques to improve decision making and interpersonal as well as individual needs of the employees Constant improvement in customers service is needed in today competitive environment. Personalized banking should be introduced to attract more customer and more facilities. Equal respect should be given to all the customers. Remittance is a basic function and a Tijarat Ganj source of income of the bank. Unfortunately there is an increasing shift the use of informal means like Hundi. National Bank of Pakistan has to play a vital role in mobilizing such remittances. The banks foreign branches have to become more competitive and service oriented. The top management should delegate some of the responsibilities to the lower and middle management. So that to increase the performance and working efficiency of the bank. Promotion is a very sensitive and important issue and thus great care should be observed in the decision of promotion. Personal liking and disliking and outside pressure should be reduced and fare promotion policy should be adopted. Promotion should give high preference to the highly qualified personnel. No ingle individual should be allowed to influence the decision of the management. The management should be given free hand to handle the affairs of the bank. The bank should send employees for training and seminars arrange be other banks so that they can compare the procedures adopted by other bank and adopted whatever better and new.CONCLUSION

National Bank of Pakistan was established as a semi public commercial bank on November 8,1949. The primary objective of the setting of the bank was to purchase jute form the growers in the former East Pakistan in the country.The bank provides all types of banking services to the government and private sectors. The overseas branches under a trust deed the bank also provides services as trustee to national investment trust including sage custody of securities on behalf of nit in consideration for annual service charge and commissionNational Bank of Pakistan is placing high priority on automation and it development. The bank is shifting its focus from routine personnel administration to human resources development, with due emphasis being placed on the optional utilization of existing human resources. Motivating pay structures and performance based on incentives were also introduced enhance the productivity of employees. Additionally, objective appraisal system is being instituted to facilities transparent ratings / promotion. National Bank of Pakistan is working on the restructuring programmer to make the bank more attractive with the eventual aim of privatization as the largest bank in the country with a customer bade of 8.5 million. The key components of the restructuring programmers are reduction-operating cost; increased in earnings, decrease in non-performing loans, effective use of information technology.National Bank of Pakistan brought a great revolution on our banking system by introducing new products, adopting all he new methods and technologies requited for an international bank. National Bank of Pakistan is desired to play a vital role in the development of Pakistan in the 21st century. Balance sheet

Currency inMillions of Pakistan RupeesDec 312008

Dec 312009

AssetsPKRPKR

Cash and Equivalents140,477.0138,631.3

Trading Asset Securities1,009.22,381.3

TOTAL CASH AND SHORT TERM INVESTMENTS156,995.0160,951.5

Other Receivables2,105.713,566.9

TOTAL RECEIVABLES2,105.713,566.9

Restricted Cash5,792.16,823.6

Other Current Assets16,276.221,070.2

TOTAL CURRENT ASSETS195,166.9218,341.3

Gross Property Plant and Equipment28,214.429,982.1

Accumulated Depreciation-3,962.7-4,810.5

NET PROPERTY PLANT AND EQUIPMENT24,251.725,171.6

Deferred Tax Assets, Long Term3,203.63,064.5

Other Intangibles20.329.3

Other Long-Term Assets34,280.732,238.3

TOTAL ASSETS820,077.2945,903.3

As On 31 December

LIABILITIES & EQUITY20082009

Accrued Expenses15,204.618,247.5

Short-Term Borrowings31,892.033,705.1

Current Portion of Long-Term Debt/Capital Lease5,117.92,921.1

Current Portion of Capital Lease Obligations15.219.0

Other Current Liabilities, Total10,242.610,654.7

TOTAL CURRENT LIABILITIES687,806.3792,041.4

Long-Term Debt3,049.68,220.9

Capital Leases10.023.6

Minority Interest112.7110.9

Unearned Revenue, Non-Current133.3218.0

Pension & Other Post-Retirement Benefits3,052.83,531.0

Deferred Tax Liability Non-Current----

Other Non-Current Liabilities21,573.920,425.7

TOTAL LIABILITIES715,738.7824,571.6

Common Stock8,969.810,763.7

Retained Earnings67,612.078,212.5

Comprehensive Income and Other27,756.732,355.4

TOTAL COMMON EQUITY104,338.5121,331.6

TOTAL EQUITY104,338.5121,331.6

TOTAL LIABILITIES AND EQUITY820,077.2945,903.3

Income statement

Millions of Pakistan Rupees

As of:Dec 312008RestatedPKRDec 312009PKR

TOTAL REVENUES41,957.145,980.5

Cost of Goods Sold261.8330.3

GROSS PROFIT41,695.345,650.3

Selling General & Admin Expenses, Total18,101.522,486.4

EBT, EXCLUDING UNUSUAL ITEMS22,261.322,198.8

Other Unusual Items, Total988.0--

Other Unusual Items988.0--

EBT, INCLUDING UNUSUAL ITEMS23,249.322,198.8

Income Tax Expense7,565.24,099.8

Minority Interest in Earnings-3.01.8

Earnings from Continuing Operations15,681.118,100.8

NET INCOME15,681.118,100.8

NET INCOME TO COMMON INCLUDING EXTRA ITEMS15,681.118,100.8

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS15,681.118,100.8

Cash flow

Currency inMillions of Pakistan Rupees

Currency inMillions of Pakistan RupeesAs ofDec 312008PKRDec 312009PKR

NET INCOME15,681.118,100.8

Depreciation & Amortization761.2875.8

Amortization of Goodwill and Intangible Assets----

DEPRECIATION & AMORTIZATION, TOTAL761.2875.8

Amortization of Deferred Charges4.26.0

(Gain) Loss from Sale of Asset-8.0-7.9

(Gain) Loss on Sale of Investment371.7651.3

Other Operating Activities-10,266.1-7,458.4

Change in Trading Asset Securities-225.6-1,371.4

Provision for Credit Losses10,634.411,148.8

(Income) Loss on Equity Investments-134.836.5

Change in Other Working Capital-47,727.1-78,285.9

CASH FROM OPERATIONS-30,909.0-56,304.5

Capital Expenditure-1,648.3-1,776.3

Sale of Property, Plant, and Equipment24.914.0

Investments in Marketable & Equity Securities13,372.0-40,773.4

CASH FROM INVESTING14,635.9-40,638.9

Long Term Debt Repaid-17.9-25.9

TOTAL DEBT REPAID-17.9-25.9

Common Dividends Paid-6,104.9-5,820.3

TOTAL DIVIDEND PAID-6,104.9-5,820.3

CASH FROM FINANCING27,409.495,317.5

Foreign Exchange Rate Adjustments2,623.1919.5

NET CHANGE IN CASH13,759.4-706.4

Quarterly comparison

Comparison between 31 Dec 2009 and 31st march 2010

Cash flow statement

Currency inMillions of Pakistan RupeesAs of:Dec 312009PKRMar 312010PKR

NET INCOME7,981.74,242.8

Depreciation & Amortization319.4253.8

DEPRECIATION & AMORTIZATION, TOTAL319.4253.8

Amortization of Deferred Charges6.0--

(Gain) Loss from Sale of Asset-5.5-2.3

(Gain) Loss on Sale of Investment503.9-3.1

Other Operating Activities-5,227.41,080.1

Change in Trading Asset Securities2,306.8-8,223.1

Provision for Credit Losses2,517.01,942.4

(Income) Loss on Equity Investments43.011.7

Change in Other Working Capital-51,146.1-4,111.5

CASH FROM OPERATIONS-42,701.2-4,809.2

Capital Expenditure-432.3-653.8

Sale of Property, Plant, and Equipment11.62.3

Investments in Marketable & Equity Securities15,196.9-29,649.4

CASH FROM INVESTING14,970.6-30,015.5

Long Term Debt Repaid---5.1

TOTAL DEBT REPAID-14.2-5.1

Common Dividends Paid----

Common and/or Preferred Dividends Paid10.0--

TOTAL DIVIDEND PAID10.0--

CASH FROM FINANCING72,806.6-12,768.5

Foreign Exchange Rate Adjustments-265.6-88.3

Miscellaneous Cash Flow Adjustments0.0--

NET CHANGE IN CASH44,810.4-47,681.5

Income statement 31march2010Currency inMillions of Pakistan RupeesAs of:Dec 312009PKRMar 312010PKR

TOTAL REVENUES14,565.812,200.7

Cost of Goods Sold330.3--

GROSS PROFIT14,235.512,200.7

Selling General & Admin Expenses, Total6,908.05,839.9

EBT, EXCLUDING UNUSUAL ITEMS7,138.76,330.1

EBT, INCLUDING UNUSUAL ITEMS7,138.76,330.1

Income Tax Expense-839.92,087.7

Minority Interest in Earnings3.10.3

Earnings from Continuing Operations7,981.74,242.8

NET INCOME7,981.74,242.8

NET INCOME TO COMMON INCLUDING EXTRA ITEMS7,981.74,242.8

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS7,981.74,242.8

Ref: Annual report of NBP 2009

www.google.comBalance sheet

Currency inMillions of Pakistan RupeesAs of:Dec 312009PKRMar 312010PKR

Assets

Cash and Equivalents138,631.398,250.3

Trading Asset Securities2,381.3--

TOTAL CASH AND SHORT TERM INVESTMENTS160,951.598,250.3

Other Receivables13,566.9--

TOTAL RECEIVABLES13,566.9--

Restricted Cash6,823.6--

Other Current Assets21,070.2--

TOTAL CURRENT ASSETS218,341.398,250.3

Gross Property Plant and Equipment29,982.1--

Accumulated Depreciation-4,810.5--

NET PROPERTY PLANT AND EQUIPMENT25,171.625,773.6

Deferred Tax Assets, Long Term3,064.53,586.0

Other Intangibles29.3--

Other Long-Term Assets32,238.376,764.4

TOTAL ASSETS945,903.3916,677.0

Ref: Annual report of NBP 2009

www.google.comCurrency inMillions of Pakistan Rupees2009

31Dec

PKR2009

31Dec

PKR

LIABILITIES & EQUITY

Accrued Expenses18,247.5--

Short-Term Borrowings33,705.1--

Current Portion of Long-Term Debt/Capital Lease2,921.1--

Current Portion of Capital Lease Obligations19.0--

Other Current Liabilities, Total10,654.76,504.4

TOTAL CURRENT LIABILITIES792,041.4720,254.1

Long-Term Debt8,220.933,574.7

Capital Leases23.661.3

Minority Interest110.9262.2

Unearned Revenue, Non-Current218.0--

Pension & Other Post-Retirement Benefits3,531.0--

Other Non-Current Liabilities20,425.746,239.2

TOTAL LIABILITIES824,571.6800,391.4

Common Stock10,763.710,763.7

Retained Earnings78,212.571,720.7

Comprehensive Income and Other32,355.433,801.3

TOTAL COMMON EQUITY121,331.6116,285.7

TOTAL EQUITY121,331.6116,285.7

TOTAL LIABILITIES AND EQUITY945,903.3916,677.0

BIBLIOGRAPHY

Vash Mc. (1993). Money Banking and International Trade 8th edition, New York. Willy Eastern ltd.

Siddiqui, Asrar H. (1983). Practice of Law & banking in Pakistan 3rd Edition, Karachi Royal Books Company.

National Bank of Pakistan NBP Annual Report 2000 National Institute of Banking and finance.

Flippo, Edwin B. (1976). Principle of Personnel Management 1st edition, Tokyo.

Gardner, Dc. (1991). Banking and Money market 1st edition, London. Dc Gardner Group Plc.

Meigs, Walter B. (1986). Financial Accounting 11th edition, New York. Mc Graw Hill Inc.

National Bank of Pakistan. (1999). National Bank of Pakistan year book National Institute of Banking and finance.

Tannan, M.L. (1993). Banking law and practice in Pakistan Masroor Book house. Miss Hina OG-2 NBP Multan Road Branch

MR Abdur Razzak NBP Multan Road Branch

www.Google.com www.Script.comCHAIRMAN

Board of Directors

Provisional Chief

Regional Chief

Zonal Chief

Vice President

GM Buisness

Branch Manager

Operation

Manager

Credit

Officer

HR

Officer

Overseas Operation

Group

Org

Devel &Training

Dept

HRM

Dept.

L.T Planning

Dept. & Imp Group

Audit

&Inspection

Group

Comercial

& Retail

Banking

Group

Risk

Mgt

Group

Treasury

Mgt

Group

Strategic

Plan & Econ Research

Group

Special

Assets

Group

Corporate

Invest Banking

Fin Group

Operation

Group

Head Office

Mgt

Structure

PAGE 68Hailey college of commerce