Report of Nbp
Transcript of Report of Nbp
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INTERNSHIP REPORT
National Bank of Pakistan
An internship report submitted in partial satisfaction
Of the requirements for the degree of
M.Com
In
Banking & Finance
by
Hira Hanif(5049)
University of Central Punjab
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ACKNOWLEDGMENT
All the praise forALMIGHTYALLAH, the creator of this universe
who guides us to overcome the difficulties in crucial situation and
all respects are for HIS HOLY PROPHET MOHAMMED
(P.B.U.H), who enables us to recognize our creator and understand
the philosophy of life.
Beyond of all the material available, I am very thankful toMr.
A ftab (Operations ManagerMain Market Branch) who give me
appropriate knowledge about National Bank of Pakistan. And
through his motivational behavior I was able to complete our
internship. AndIam thankful to the employees of NBP, during the
study period and preparation of this report.
Secondly I acknowledge the inspiring guidance, encouraging
attitude, valuable comments and technical guidance, received from
my respective teachers of University of Central Punjab.
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PREFACE
In the name ofAllah whoIs most merciful and beneficial.
Allah give us many abilities with theseIwould be able to do this
report. This is the internship report of National Bank of Pakistan.
In it the detail is given of the workIhave been done at Bank.
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DEDICIATION
Idedicated this assignment to my Parents andTeachers who have
always been a source of inspiration to me and toMr.Aftab
(OperationsManager of NBP)who gave me great knowledge about
banking sector.
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Table of Contents
Executive Summary 6
Introduction 7-8
Organization Profile 8-10
History of NBP 11
Aims and Objective in this Organization 11-12
Departments of Bank 12-13
Account Opening Department 13-15
Cash Department 16
Clearing Department 16-17
Remittances Department 17-18
Accounts Department 18
Credit Department 19
Objective and purpose of Internship 19-20
Identification of Main Problems 20
Suggestions 20-21
References 22
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Executive Summary
SBP has prescribed the National Bank of Pakistan For me. I had completed my
internship in the NBP Main Market Gulberg Branch. I worked at various department of
the bank. Such as In account opening, pension, and did some work at clearing and
remittances. The working environment at Bank was cooperative. The staff was very
cooperative and friendly. I had learned a lot form the bank and observe the marketing
system of this bank i.e. How it works and to what extent it is successful. I spent most of
my time during internship in pension, where I interact with people and know how to deal
with customer. And also about the working and procedure of the pension. I also make the
scroll of the pension at the end of the day; I dispatched the account opening form in a file.
Through this internship I learn about the marketing system of this bank i.e. how it works
and to what extent it is successful. With this internship I enhance my intellectual skills. I
deal with customer and help those customers, who are confused, help them in such a way
by filling credit or debit slips. In accounts department I had filling different reports. In
clearing department I receive the cheques, I stamped the cheques. Maintaining good
relationship with the customer has polished my interpersonal skills and resolving
customers Problems give them a feeling that the company employees care for them. I
also used to place the document on their proper file.
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Introduction
The National Bank of Pakistan is a Commercial Bank and transacts all types of Banking
Business. The National Bank of Pakistan was established on November 29, 1949 as a
semi public commercial bank. The Bank has the distinction of acting agent of the State
Bank of Pakistan and operates treasuries where the State Bank of Pakistan does not have
any office. The Head Office of the Bank is at Karachi. Ever since its establishment in
1949 it has been leading
Commercial Bank of the nation, sole agent of the Government of Pakistans batter trade
with countries and of State Bank of Pakistan for the Government Treasury. It has offices
at all the major financial centers of the including at pride places likes 100 wall streets,
New York and United nations Plaza. Its International net-work includes Branches at
Bahrain, Cairo, Paris, Frankfurt, Hong Kong, and London, Washington D. C of shore
banking unit at export processing zone. Karachi and representative offices functioning at
Beijing and Seoul. In Pakistan, the bank provides complete bank facilities to the people
at over 1436 Branches operating even at the far lug Northern Areas. National Bank of
Pakistan is the first bank in the country to introduce and implement supervised Ruler
Credit Programmed help small farmer to obtain loans at his doorsteps on easy terms andconditions. It has also played a pioneering role in introduction of profit and loss sharing
System (PLS) as a major towards Islamization of economy. In addition to the normal
business operations the bank provides special loan facilities for higher education for
studies abroad and Qarz-e-Hasna to deserving poor students of Medical and Engineering
Colleges in Pakistan. The well equipped research department to work on the developing
trends of finance and banking, besides a very well managed library at the Head Office.
The banks carry on its business through a wide network of branches locally andinternationally. These branches execute their function under the supervision of local
Regional Offices and regional offices are supervised by the Head Office located a
magnificent building in the heart of Karachis center. In the forty five years that have
followed the bank has made remarkable progress testifying to several things. It is now
extending the operations of the Bank to all branches to Banking, to commerce, to industry
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to trustee services as well as to agriculture and to the need of the small or big
businessman. It has rapidly advanced from an institution with restricted power to the
biggest commercial banks in the country it also shows it soundness of the policies that the
bank has pursued in the execution its tasks. The National Bank has leaded the trial in thisrespect, other banks have followed it. The National Bank has great contribution towards
building wide Banking structure in Pakistan and serving all aspects of the National life
and all classes of society.
History of NBP
The normal procedure of establishing a banking company under the Companies Law was
set aside and the Bank was established through the promulgation of an Ordinance due to
the crisis situation that had developed with regard to financing of jute Trade. The Bank
commenced its operations from November 20, 1949 at six important jute centers in the
then east Pakistan and directed its resources in financing of jute crop. The Banks
Karachi and Lahore offices were subsequently opened in December 1949. State bank of
Pakistan after its formation demanded from the Indian Reserve Bank the assets against
the Indian currency retired from Pakistan territory. Government of India refused to hand
over the assets worth about five hundred million rupees. The dispute is still unsettled and
these assets are still not delivered to Pakistan. Until June 1950, the Bank was engaged
exclusively on jute operation. Thereafter, it was felt that it could expand its business to
include other commodities as well. Bank took a big stride in 1952, when it replaced the
Imperial Bank of India, as an agent of State Bank of Pakistan. With the passage of time
its functioning diversified as they take over the function of different institution with the
passage of time like in past they took over the function of Imperial bank of India and now
of NDFC (national development finance corporation) It is working as the agent of the
state bank of Pakistan and performs its functions wherever state bank of Pakistan is not
present. The government floated its 10 % of the shares in the open market in----------------
------
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Organization Profile
Vision
To be recognized as a leader and a brand synonymous with trust, highest standards of
service quality, international best practices and social responsibility.
Mission
NBP will aspire to the values that make NBP trulythe 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
Discharging our responsibility as a good corporate citizen of Pakistan and in countries
where we operate
Core values
Highest standards of Integrity
Institutionalizing team work and performance culture
Excellence in service
Advancement of skills for tomorrows challenges
Awareness of social and community responsibility
Value creation for all stakeholders
Goals
To enhance profitability and maximization ofNBP share through increasing leverage of
existing customer base and diversified range of products.
Corporate banking
NBP further consolidated its position as one of the top players in corporate and
investment banking of the country in 2007and has built a strong customer relationship
with the premier corporate clients.
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Aims & Objective of Bank
The main objective of National Bank of Pakistan has been to include and spread banking
habits among the people mobilize their savings and thus make and ever increasingcontribution to the economic development of the country. It has all along pursued a
policy of rapid development extending, its facilities to almost every center of economic
potential in the country. Its services have been increasing continuously and are being
brought within an easy reach of the ever-growing number of people.
To day it provides the largest network of offices in the country, 1436. Being in Pakistan
and 22 aboard. It offers remittance facilities to almost every important center in the
country to provide facilities to the traveling public the bank has introduced its own
travelers cheque which are en cashable at a branch of the bank in Pakistan.
Products Services
Premium Aamdani
Monthly Income Scheme
Earn up to 11% p.a. +
Minimum deposit of Rs. 20,000/- and a maximumdeposit of Rs. 5,000,000/- for 5 years
Free Demand Draft, Pay Order and Cheque Book*
Convenience of NBP online Aasan Banking (for online
banking customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%
Premium Saver
PLS Saving Account
Earn up to 7.25% p.a. +
Minimum saving balance of Rs. 20,001/- & a
maximum balance of Rs. 300,000/-*
Free NBP Cash Card (ATM + Debit)
Convenience of NBP Online Aasan Banking (for
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online banking customers)
Two debit withdrawals allowed in a month & no limit on number of deposit transactions
Profit calculated on monthly and paid on half yearly basis
Karobar
Mera Apna Karobar
Minimum down payment, 10% of asset price (5%
for PCO & Telecaster)
Tenure 1 to 5 years (for PCO 2 years)
Grace period 3 months
Maximum loan amount Rs. 200,000/-
Age 18-45 years
Mark-up (variable) 1 year KIBOR + 2.00% p.a.
The customer will pay markup @ 6% p.a., rest will
be borne by GOP* Life & disability insurance paid by GOP*
* subject to the availability of subsidy from GOP
Saibaan
Home Financing
Home Purchase
Home Construction
Home Renovation
Purchase of Land + Construction Balance Transfer Facility (BTF)
Advance salary
Personal Loan
Easy installments of 1 to 60 months at your choice
No minimum income collateral & insurance charges
required
Quick processing and fastest disbursement
The product is for permanent employees of
Government, Semi Government and Autonomous
bodies receiving salaries through NBP accounts
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Cash and Card
ATM + Debit Card
Use it as an ATM in any of the ATMs in Pakistan
Use it as Debit Card in any of the outlets with ORIX
POS machine
Cash withdrawal up to Rs. 20,000/- per day
Account Balance Enquiry
Mini Statement (Only at NBP ATM)
PIN Change facility (Only at NBP ATM)
Investor Advantage
Financing Facility for Stock Investors
Comfortable environment for trading
No security requirement, except for the customers
equity
Customers equity freely available for investment
Equity acceptable in cash or approved shares
Cash & Gold
Ready Cash Against Gold
y Facility of Rs. 10, 000/-against each 10 gms of
net weight of Gold Ornaments
y No maximum limit of cash
y Repayment after one year
y Roll over facility
y
No penalty for each repayment
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Kisan Taqat
Kisan Dost
Agriculture Farming Program
Competitive mark-up rate
Quick & easy processing
Delivery at the farmers doorstep
Technical guidance to farmers
Wide range of financing schemes for farmers
Finance facility up to Rs. 500,000/- for landless farmers against personal guarantee
Financing available against pass book, residential/commercial property, gold ornaments
and paper security
Loan facility on revolving basis for three years (renewable on yearly basis without
documentation and approval)
Protection Shield
Personal Accident Insurance
No documentation
No medical required
Premium Auto Debit facility & choice of deactivation
Coverage includes death due to:
Natural Calamities e.g. Earthquake, Flood, Cyclone etc.
Accident
Riots*
Civil Commotion* Strikes*
Acts of Terrorism*
NBP Protection Shield
NBP Protection Shield
(Life is Precious)
* Provided the insured is not actively involved in these activities
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Departments of Bank
My learning in different department of bank. One of my job was to deal with the
customers in almost every department. Different customers ask for different things. Like
in the Account opening department, they ask about the procedure, charges, balance
inquiry etc. In the clearing department they ask about the bonus back of cheques and
related things. In pension I fill there pension form. Some customer also got confused
where to start, I had also guided them. The names of department are as follow:
Account Opening Department
Cash Department
Clearing Department
Pension Department
Remittances Department
Accounts Department
Credit Department
Account Opening Department
In Acccount opening department I had learn a lot.
Maintaining good relationship with the customer has polished my interpersonal skills and
resolving customers Problems give them a feeling that the company employees care for
them. There are several types of accounts such as:
1. Idivdual/ Joint Account
2. Sole Propreitorship/ Partnership/ Joint Stock
3.
BBA(Basic Banking Account)
4. PLS
Documents required for opening Account are:
Nadra original NIC
Copy of CNIC which verified/attested
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If he/she is Govt. employee then he must give certified letter of that institution
where he/she is working.
If he/she is illiterate person then he/she give his/her three photographs.
The copy of the utility bill.For Partnership
Copy of NIC (see original NIC)
Attested copy of Partnership Deed duly signed by all partners of
the firm.
Attested copy of Registration Certificate with Registrar of Firms.
In case the partnership is unregistered, this fact should be clearly
mentioned on the Account Opening form.
Authority letter, in original, in favor of the person authorized to
operate on the account of the firm.
Copy of registration certificate( if registered)
Company Letter Head
The persons which opened their account in bank when they receive the letter from
bank they return the letter to bank after they do sign on it or they bring that letter then
bank issue cheque book.
Cash Department
In cash department different facilities are given to the customer such as: received
cheques, receive cash, pay cash, online transaction. Online service is provided by the
bank to transfer money from one account to another.
Work in cash department and learned how to accomplish different tasks like deposit,
credit card slips and how to build the scroll of PTCL and SNGPL bills. I have counted
bundles of cash, sorted the cash and make their packets and bundles again. The spoiled
cash is sent to the head office. Head office sent this to State Bank, which after checking it
burn the spoiled notes.
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y Clearing
In it the cheque of bank own account holder of within city is cleared. Bank
take the cheque posted stamp on it & NIFT collect these cheques in evening.
If all the things like amount, date, signature etc is correct then NIFT sent it tothe bank whose cheque is this. And something is incorrect or amount is not
sufficient then they return the cheque. The entry of the clearing is recorded in
clearing registered.
y Intercity clearing
In it the cheques of out of city is cleared these cheques are also stamped and
inter city clearing stamp is also required. These cheques are raped in the
envelope of that city and entry is recorded in intercity clearing register and
NIFT collect these.
3. SC(Short Credit):It is out of city where the branch of SBP does not exist. The SC is made when
the customer is bank own account holder and he/she give the bank a cheque of any other
bank or of NBP of other city where NIFT is not working.
SC stamp is required & SC serial no is written in it which is according to the serial no of
the SC register in which the record is kept. SC form is filled. Bank keeps the credit
voucher with them and cheque with SC form is sent.
Separate register for SC sent and received is prepared. When the bank who send SC
received the fanfode then bank credited the customer account and debited general
account.
Pension Department
There are three types of pension which is paid by the bank which are:
1. Provincial Pension
2. Defense Pension
3. Central Pension
4. EOBI (Private pension)
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Requirement for taking pension
The pensioner must fill the pension form
He paste the ticket on pension form according to the amount of pension
y Up to Rs 1,000 (two rupee ticket is pasted )
y For more than 10,000 (five rupee ticket is pasted)
The bank checks the following things for giving pension:
Their PPO no.
The people whose pension is this he/she his/her own self collect the
pension.
Revenue Ticket on pension form
Bank do entry in the pension book of the pensioner and also make the
entry in the banks register.
In the start of the month from 1st
to 10th
bank give them pension in cash. And from 15to
25 the banks take the pension form and transfer their pension in their account on 1st
of
next month.
At the end of the day the scroll of the pensions which is paid in the whole day is made.
Separate pension scroll is prepared for defense, provisional and central. Two scrolls are
prepared one for bank record and other is sent to head office.
Remittances Department
Remittance department provide a facility to a customer to transfer money
from one place to another. And can also refer to the accounting concept of a monetary
payment transferred by a customer to a business. Remittances are transfers of money by
foreign workers to their home countries. In remittances they tell me different functions.
They issue pay orders, demand drafts, fixed deposit receipt (FRD), telegraphic (TT) and
mail transfer (MT).
They can transfer money through
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1. Pay Order (PO)
2. Demand Draft (DD)
3. Tele Transfer (TT)
4.
Mail Transfer (MT)Pay Order (PO)
This is used to transfer money within city. The customer making the pay order
from bank for giving money to any other party, they fill the pay order slip and give to the
bank. After that they deposited money in bank and bank give them pay order. The
charges where taken it depend upon the amount. The bank takes the following charges:
1. Commission
Demand Draft (DD)
This is used to transfer money outside city. The customer making the demand draft from
bank for giving money to any other party who is live , they fill the demand draft slip and
give to the bank. After that they deposited money in bank and bank give them demand
draft. The charges where taken it depend upon the amount. The bank takes the following
charges:
1.
Commission
2. FED (it is taken on bank charges which is 16%)
Tele Transfer (TT)
This is used to transfer money outside or with in the country. In TT the bank transfer
money through fax. The charges where taken it depend upon the amount. The bank takes
the following charges:
1.
Exchange is takenRs.1,000 to Rs.100,000 (0.01 or Rs. 50 whichever is higher is taken)
Rs.100,001 to Rs.1000,000 (0.05 or Rs. 100 whichever is higher is taken)
above Rs.1000,000 (0.04 or Rs. 400 whichever is higher is taken)
1. Postage Charges
2. FED (it is taken on bank charges which is 16%)
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There are different types of finances and for them there are different requirements
like requirements of working capital, mark up rate has been decided and clean up
requirements has also taken into consideration.
National bank of Pakistan also provides finance facility for:
Loan against gold
Advance salary loan
Advances in current account for pledge
Saibaan
Cash & Gold
Ready Cash Against Gold
y Facility of Rs. 10, 000/-against each 10 gms of net weight of Gold Ornaments
y No maximum limit of cash
y Repayment after one year
y Roll over facility
y No penalty for each repayment
Advance salary
y Personal Loan
Easy installments of 1 to 60 months at your choice
No minimum income collateral & insurance charges required
Quick processing and fastest disbursement
The product is for permanent employees of Government, Semi Government and
Autonomous bodies receiving salaries through NBP accounts
Saibaan
y Home Financing
Home Purchase
Home Construction
Home Renovation
Purchase of Land + Construction
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Balance Transfer Facility (BTF)
Objectives and Purpose of Internship
I worked as an internee in National Bank of Pakistan to gain and experience the
knowledge and working of banking sector. These are the major objectives of my
internship:
1. To learn how the banks departments function. I wanted to have myself in the
environment where I could get interact with the customer and be courtesy with
them as much as possible.
2.
To learn about the techniques and processes used in Operations Department.
3. Dealing with the problems regarding their Accounts or any other related problem.
4. Guiding customers and making the banking function convenient for them.
5. To get the thorough knowledge of different credits offered by bank.
6. To be a part of a competitive environment and enhances my skills.
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Identification of Main Problems
The main problem that I think National Bank of Pakistan facing is the lack of
motivated staff. I worked under many people and most of them were not satisfied withwhat they were being paid. Actually when we compare the salaries being paid by with
those of other banks, they are far lesser. Another problem is that of favoritism. People
here believe that employees, who are favored, get promoted earlier than those who are
not.
They think that their hard work is not being properly awarded. This is a big
problem, which the National Bank of Pakistan is currently facing because we all know
that lack of motivation causes sharp fall in the performance of the employees and thus the
organization.
One more problem is employee is over burden by the work mostly they do the
work of two or three seats. The other main problem is that there is on computer system
for every employee which reduces their work efficiency. Photocopy machine is not
available in the bank for photocopy of any document they sent outside for it due to which
their lot of time is wasted.
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Suggestions
Computer must be available to every employee who makes their work easier and
record keeping becomes very easy. The computer system should be up to date or checked every month that will
remove computer problems like virus.
There must be a photocopy machine in the bank which will reduce the wastage of
time.
The bank should use efficient Internet facility, which is available in the market
very easily. They used internet but not using DSL thats why sometimes the speed
of internet is very slow which create great problem especially for online
transactions.
There must be separate parking for both employees and the customers, in order to
facilitate them both. It is better for the bank employees to arrive at bank 5 to10
minutes early then there bank timings, so they could have the proper parking
space for them.
Internees are given less importance. They do not have proper procedure for
training. Internees should be given more formal training.
In Main Market Gulberg Branch, there is less staff. So, they should hire more
employees to meet there working requirements efficiently.
Training programs offered by National Bank of Pakistan are less. They should
increase them to enhance the skills of their employees.
Many customers complaint that the bank numbers are busy all the time. Actually
one is not working properly, so they should remove this fault to avoid customer
dissatisfaction.