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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.