WORK DONE BY ME

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INTERNSHIP REPORT

National Bank of Pakistan

Submitted By:

M. Bilal Safdar

Reg # 01151013058

MBA lll

Session 2010-2012

Supervised By:

Dr. Ajmal Wheed

\

Quaid-i-Azam School of Management Sciences


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Executive Summary

Banks are expanding aggressively into new international and home markets are no longer as rich

in opportunity. Domestic companies that never thought about foreign competitor suddenly find

these competitors in their own backyards. The firm that stays at home to play it safe not might

lose its chance to enter other markets but also risks.

Over all National Bank of Pakistan is serving as a back bone of Pakistans economy. NBP offers

wide range of products and services to Pakistani people not only in Pakistan but also in other

countries. And recent achievements and awards won by NBP shows that this Bank full fills the

international requirements of Globe.

National Bank of Pakistan follows double entry system which minimizes the chances of mistakes

and frauds, functions of NBP are slightly different from the other commercial Banks of Pakistan.

Because NBP serves as a subsidiary of State Bank of Pakistan, its the Bank of Nation. All sorts

of Governmental actions are taken by Government with the help of NBP, all Government

collections and payments e.g. Payments of pensions and benevolent fund, collection of Taxes

etc. Network of its Branches are spread all over the country even in the remote areas as well.

NBP Saving Account, Current Account, PLS term deposit Account, National Income Daily

Account etc, are the NBPs widely known products. Demand Draft, Swift System, Letter of

Credit Travelers cheques, pay order, Mail Transfer Telegraphic Transfer, Online Transfer of

funds are its major services.

National Bank of Pakistan Civil Line Branch Faisalabad (0360) is a CHEST Branch that

Controls the affairs of all branches in the Faisalabad division. Over all financial position and the

profit of Branch is satisfactory, because Faisalabad is an industrial city, almost 70% business is

based on cotton industry. They need credit facility for their operations, mainly this Branch

Provides Credit to them in the form of pledge of stock, hypothecation of stock and letter of credit

for exports civil line Faisalabad gets profit on their credit (i.e interest / mark up). This is reality

that as compared to other Big five Main Branches of Pakistan, Civil Line Branch Faisalabad hasa less Depositbut it is still a 3

rdlargest Branch of Pakistan that is generating highest profit since

1960.

CHAPTER 1


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1.1 History of Bank

National Bank of Pakistanbegan life as a public sector institution, having been started by the

legendary Mumtaz Hassain, and that is where its remains till this day and for the foreseeable

future. Soon after the birth, it was even providing central bank services in remote areas where

the state bank did not reach. Where there is a will there is way. This adage fits like a globe to

the national bank of the Pakistan, which was set up to meet the challenges of trading after India

had with held Pakistans which was set up to meet the intention was create a Muslim base of

Banking. It was the first commercial bank in the public sector to help small and big business

alike, particularly in Jute trade of the East Pakistan. Few people realize that this bank which has

now branches particularly at all the country as well as in the major commercial centers, of the

world, would grow so fast and in gain in percentage because of its modern approach to banking

quick service concept it offered to its clients.

National bank of Pakistan maintains its position as Pakistans premier bank determines to set

higher standards of achievements. It is the major business partner of the government of

Pakistan with special emphasis on fostering Pakistans economic growth through aggressive

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

its large network branches locally.

1.1.2 Time Line of History

The following time line gives a brief insight on the history o the national bank of Pakistan.

1949 National Bank of Pakistan (NBP) was established under the National Bank ofPakistan Ordinance of 1949 and was government-owned. NBP acted as an agent of

the central bank wherever the State Bank did not have its own branch. It also undertook

government treasury operations. Its first branches were in jute growing areas in East

Pakistan. Offices in Karachi and Lahore followed.

1950 NBP established a branch in Jeddah, Saudi Arabia. 1955 By this time NBP had branches in London and Calcutta. 1957 NBP established a branch in Baghdad, Iraq. 1962 NBP established a branch in Dar-es-Salaam, Tanganyika. 1964 The Iraqi government nationalized NBP's Baghdad branch.


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1965 The Indian government seized the Calcutta branch on the outbreak of hostilitiesbetween India and Pakistan.

1967 The Tanzanian government nationalized the Dar-Es-Salaam branch. 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong.

At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern

Mercantile Bank and with Eastern Bank Corporation.

1974 The government of Pakistan nationalized NBP. As part of the concomitantconsolidation of the banking sector, NBP acquired Bank of Bahawalpur.

1977 NBP opened an offshore brain Cairo. 1994 NBP amalgamated Mehran Bank.

1997 NBP branch in Ashgabat, Turkmenistan commenced operations. 2000 NBP opened a representative office in Almaty, Kazakhstan. 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks

to operate in the UK. NBP and United Bank agreed to merge their operations to form

Pakistan International Bank, of which NBP would own 45% and United Bank 55%.

2002 Pakistan International Bank renamed itself United National Bank Limited (UNB).The ownership structure of the UNB remained as before. The only change to the

shareholding structure is that UNB had recently been privatized in Pakistan and was now

owned 49% by the Government of Pakistan and 51% by a joint foreign consortium

of Abu Dhabi.

2003 NBP received permission to open a branch in Afghanistan. 2005 NBP closed its offshore branch in Cairo. 2010 NBP opened its branch in Karaganda (Kazakhstan).

1.2 Vision

To be recognized as a leader and a brand synonymous with trust, highest standards of

service quality, international best practices and social responsibility.


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1.3 Mission

NBP will aspire to the values that make NBP truly

theNations 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

1.4 Introduction

National Bank of Pakistan (NBP) is one of the largest commercial bank operating in Pakistan. It

has modifies its role and has moved from a public sector organization into a modern commercial

bank. 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 bank in the debt equity market, retail and consumer banking, corporate

investment banking, agricultural financing, treasury services and is growing interest in

promoting and developing the country's small and medium enterprises and fulfilling its social

responsibilities,

1.4.1 Head Quarters and Branches

NBP headquarters is located in Karachi; NBP has over 1289 branches country wide with total

employees figured up to 16457. The bank provides both commercial and public sector banking

services.

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. The Bank's services areavailable to individuals, corporate entities and government. 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 listed on the Karachi Stock Exchange.


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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, and 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.

A number of initiatives have been taken, in terms of institutional restructuring, changes in the

field structure, in policies and procedures, in internal control systems with special emphasis on

corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the

up gradation of the IT infrastructure and developing the human resources.

National Bank of Pakistan has built an extensive branch network with 1289 branches in Pakistan

and operates in major business centre abroad. The Bank has representative offices in Beijing,

Tashkent, Chicago and Toronto. It has agency arrangements with more than 3000 correspondent

banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP

Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty , Kazakhstan.

The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an


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Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of

Singapore).

1.4.2 Introduction of NBP Civil Line Branch Faisalabad

National Bank of Pakistan Civil Line Branch is the main branch in Faisalabad city. And it is the

most popular branch in Faisalabad city. In civil line branch the chief manager of the branch is

Imtiaz Ali Khan. And under the chief manger their many subordinate as operation manger, credit

manager, HRM manager, Foreign Exchange manager etc. They doing work very well. These

people are very intlectual and cooperative.

1.5 Awards

Recently NBP has been awarded the Certificate for Performance by SBP/PRI for providing

best remittance services. The bank was awarded Bank of the Year award for the year 2010.

This award was given on the back of trust that clients have shown National Bank has earned

recognition and numerous awards internationally. It has been the recipient of The Bank of the

Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine, the Best Foreign Exchange

BankPakistan for 2004, 2005, 2006 and 2007, Global Finance, Best Emerging Market Bank

from Pakistan for the year 2005, Global Finance, Kissan Time Awards 2005 for NBP's services

in the agriculture field. It is listed amongst the Region's largest banks and also amongst the

largest banks in South Asia 2005, The Asian Banker. It has also been presented a RecognitionAward2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other

awards.


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Staff Rank Organogram.


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President

Board ofDirectors

Snr. ExecutiveVice President

Executive vicePresident

Vice president

Assistant VicePresident

Officer Grade-I

Officer Grade-II

Officer Grade-III


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1.6 Department Functioning

In NBP Civil Line Branch Faisalabad has Three main departments for functioning of which

whole function of bank is depended or we can say that all services are rendered through these

departments. These department are explained with their headings are as under

1.6.1 Credit Department

In NBP Civil Line Branch Faisalabad, the credit department is the key department and working

very well. The NBP civil line Branch have 4 members in credit deprtment. Muhammad Sajid

lead to this department as a credit manager. In civil line branch, the credit department is limited.

Because they just deal credit terms in Sole Proprietorship and Partnership.

1.6.2 Advance Department

Advance department receives the application from borrowers and after getting approval from the

head office advances are made. The advances can be of following nature.

Agriculture advance to farmers Short terms advance to businessmen Long term advance for setting industry Medium term advance for working capital Seasonal advance to cotton gingers rice and sugar mills.

1.6.3 Remittance Department

Remittance is the monitory transfer from one place to another place or from one country to

another country to fulfill the requirements of the customers by the order of the customer.

Remittance department at NBP main branch Dera Ismail Khan (0327) can be divided into two

sections due to its activities.

Local remittance Foreign remittance


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1.6.4 Local remittance:

Local remittance section deals with remittance (incoming and outgoing but only in local i.e.,

Pakistan rupee and within Pakistan.

Local remittance includes the following eight functions in NBP:

Transfer through pay order Transfer through demand draft Telegraphic transfer Mail transfer Local / internal transfer

1.6.5 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 provides

facilities of exporting the commodities to the manufactures of the goods of the country.

Foreign Remittance

The 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

1.6.6 Clearing Department


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Nearly all the banks provide a wide variety of services to their depositors. One valuable service

provided is that of clearing. Clearing department also plays an important role in performing the

activities of the bank.

The basic function of clearing department is to provide services to customers in collection of

their cheques of other banks, whether they are in city or outside the city. The customer can get

the money in his account at NBP from the cheques drawn on another bank. The bank accepts the

cheque in the clearing which it is drawn through the clearing house i.e., state bank of Pakistan.

Clearing

We can define clearing 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 cash

through state banks clearing house or we can say in other that cheques which can not be

cashed at the ash counter of the bank.

Clearing House

It is of the service provided by central bank i.e, state bank of Pakistan to the other commercial

banks. SBP acts as a clearing house. A representative of each bank represents his bank in the

clearing house.

A clearing house is an association of commercial banks set up in a given locality for the

purpose of interchange & settlement of credit claims.

The SBP maintains the accounts of the NBP like other scheduled banks and debits the account of

the drawee bank and credits the presented bank which is NBP in that case


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CHAPTER 2

Work Done By Me

I had joined the National Bank of Pakistan Civil Line Branch Faisalabad as a internee. I had

worked six week. During the entire session I have learned lot of thing from our different

supervisors as well as the whole organization. I have learned practical work and also the whole

organizations environment as well. National Bank is basically a semi government bank, so

thats why there are lot of things are going to very good but in other way many thing are alsogoing to wrong. Like National Bank is the only bank which deal the salaries and pensions of the

government employees.

I had worked in different departments in my whole internship. These departments were billing

department, Credit Department and Foreign Exchange. But I had spent my more time in credit

department. I almost spend 3 weeks in credit department and remaining time in billing and

foreign exchange.

2.1 Credit Department

Credit section means the area which is providing loans and financial facilities to the people by

giving loans to them. In this Department I had learned about the credit terms. In todays banking

credit department is the key department and its playing vital role. So thats why in National Bank

of Pakistan the credit department also very important and the key department todays. The NBP

civil line Branch has 4 members in credit deprtment. Muhammad Sajid lead to this department as

a credit manager. In civil line branch, the credit department is limited. Because they just deal

credit terms in Sole Proprietorship and Partnership. Corporate branch deal corporate level credit

terms. But when the credit branch not exist then in this branch credit department very big.

In this department, first I met with Muhammad Sajid who was the credit manager. He guided me

to met with the concerning person and first he refered me to Sir Shahid Ameen. Shahid Ameen

was the assistant credit manager and also incharge of President Rozgar Scheme. And in this


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department two more person also whose are Sir Haroon and Miss Sana. In this department our

training is divided into different parts.

In this department, my first supervisor was Shahid Ameen. And I had learnt many things like

starting process of credit, because he was the first person in this department who met to client in

starting process. They prepare the proposal for the credit terms. And in credit term he cheked out

each and every thing of the client. In credit process, sir Shahid Ameen meet with the client and

checked him willingness and his character.

2.1.2 5Cs

5Cs are the basic requirement of credit department. Because when credit manager visit his client

then he applied all 5cs on him. These 5cs are character, capital, capacity, colletral, and

condition. These 5Cs are fulfilled by client then the loan can be disbursed. There are following.

Character Capital Capacity Condition Collateral

Character

In 5Cs, Sir Shahid conduct a meeting with his client and checked all Cs. In character the credit

manager check the character of his client. He checked his client willing to repay the loan and

other things.

Capital

In capital, Sir Shahid check the worth of clients property.

Capacity

In this category, Sir Shahid check client capacity of repay the loan and disbursement of loan.

Colletral

In this c, Sir Shahid check the some special requirement like if the client already take a loam

from other bank and what kind of attitude of client with other bank.

Condition

In condition also checked out the same thing of client.

2.1.3 Products of Credit Department


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NBP advance salary Loans against hypothecation and pledge Running finance Saiban house financing President rozegar scheme

Loans Hypothecation and Pledge Against

In this product, sole proprietorship and partnership business tried to take the loans form the

banks so that they can overcome the deficiency in the business. To secure the loans from that

companies bank took their stock in its possession so that bank will be able to cash its amount in

case of any default. Bank provides loans on pledge or on hypothecation. Because bank took

stock or securities of the company so company pay its loans on time. Requirement for

sanctioning the loans is as follows:

Partnership deed (in case of partnership firms) Memorandum and article of association (in case of joint stock ) Valuation form of the property No. of shares, names, address and CNIC of every partner/ directors with their liabilities. Willing certificate to take loan form bank by every partner/ directors with their

signatures.

Documentation Process

In documentation process, I was met with Mahmood ul Hassan Zaigham. He was typical public

sector employee. I almost part of my internship had worked under the supervision of him. He is

the CAD Executive and him job is checked out the documentation process, recorded and also

filed. The documentation of credit process is very difficult because there are lot of

documentation paper process. I had also 5 companies documentation. In this process, first we

check the all required documents like securities, valuation report, mutation and other required

documents. And also recorded it into computer also. So most of time, sir was given him work me

and gone.

In documentation process bank took the real documents of the party to make him liable to pay

the debt on time in case of non-payment bank is authorized to take the property of the person on


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its custody. In documentation process bank will take the following documents

Real registry of the documents Whole back ground of the property Power of attorney Mutation on the property Letter of credit grantee from the bank Valuation report Securities documents. If business is based on partnership then the partnership deed document also required. Authentic lawyer report

Running Finance

Running finance is given against the liquid securities and liquid securities are like defense saving

certificate and foreign exchange currency. The limit of this finance is up to one year but if he can

not pay the loan then he can renew it. Finance is granted against the securities and bank will keep

105 of the margin of securities and remaining 90% is advances to the borrower. The mark up rate

is calculated as 3 months average rate of KIBOR + 2% takes of one proceedings day of calendar

quarter for which the mark up is being calculated. The mark up will be calculated quarterly by

the bank but account will be debited yearly. The repayment of the loan is given in lump sump. If

the borrower can not pay the whole amount then he can request to the bank to make the

installment par month.

NBP Advance Salary

Advance Salary scheme also deal by credit department. NBP advance salary is the scheme of the

NBP to provide the maximum 15 advanced salary to the employee on his personal request.

Advanced salary will be provided by the following person.

1. Government Employee2. Semi government employees3. Autonomous

Before Advancing Salary


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Before advancing the salary to the applicant bank will check the following documents.

Bank will check the average salary of the 3 months of the applicant who is willing to takethe advance salary.

Salary should not be very much fluctuated Account of NBP should be in NBP. Form last 3 salaries one must be drown from concerning branch.

SAIBAAN SCHEME

Product Policy & Parameters

Saibaan Scheme handled by Sir Umar who is the grade one officer and also deal foreign

exchange department as well. Saibaan scheme has ended due to some reason. Because the NBP

had designed the policy that when the default rate increase from 5%, then the policy will be

ended. Now Sir Umar only handled those clients who have purchased the policy earlear but loan

not giveb back to bank.

Home Purchase Loan

In home purchase loan, the Bank provides the loan to client for purching the fulfledge home. In

this category the client also can purchase the land and construct the home as per him

requirement. But bank never gave the loan for just purching land. Financial assistance being

acquired under the NBP Mortgage Financing for the purchase of ready residential property

House or Apartment.

In home purchase, the loan must be given back from 3 to 15 year. And in this category loan limit

given to client on the basis of job or business.

Home Construction Loan

In home construction loan, the bank provide the loan to client for just construction purpose. In

this case the client has its own land and take loan just for construction purpose. Financial

assistance being acquired under the NBP Mortgage Financing by mortgaging self owned

residential land, which may be open or partially constructed upon, for construction purposes

leading to self-occupancy. In this category also loan must be given back from 3 to 15 years.


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Home Improvement Loan

In home improvement loan the bank provides the loan to client for improvement purpose in

home. Financial assistance being acquired under the NBP Mortgage Financing by mortgaging

self owned & self occupied ready residential property House or Apartment, for renovation

Balance Transfer Facility

Provide facility to those customers who have already availed housing finance from some other

banks and they intend to switch their loans to NBP.

Eligibility

All applicants must be Pakistani resident nationals ,CNIC holder, having clean CIB/Data Check

report and maintaining salary/current Alc (if not, then Alc to be opened at NBP branch before

finance disbursement) ..

Security

For collateral purposes, the property for the purchase / construction/ extension renovationof which the financing is being provided, will be mortgaged.

Mortgage will be created jointly in case of co owners. Joint ownership with other thanspouse/ parent / adult male children not allowed.

1 % token Registered of the finance amount and balance, as Equitable Mortgage will becreated on the property. However, only Equitable Mortgage will be created on the

Properties financed at Karachi, Lahore, Islamabad & Rawalpindi.

All the original property documents are to be retained by the bank and charge to becreated and registered with the Registrar of Documents/ Assurance.

The bank will also retain three undated cheques in favour of NBP. Each check will countto one finance installment.

There should be no prior lien / claim on the property and Search Certificate to beobtained.

NBP KAROBAR


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Product Policy and Parameters

NBP karobar scheme launched by former President Pervez Musharaf and this also has another

name which is President Rozgar Scheme. In this scheme there are three products.

Rakshaws Telecenters Utility Stores

Rikshaw

In this scheme the NBP gave the Rakshas to unemployed people. There are some condition

which are required to fufill the transaction.

Age must be 25. Last residence must be two year

Telecenters and Utility Store

These two scheme almost have ended. Because todays everyone have a personal cell phone so

telecenter business almost sunk.


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2.2 Billing Department

We have very short period and very important work remains to do. So Bank Management sends

us to billing department in billing department we learned about

Telegraphic Transfer Pay order Mail transfer Demand Draft

I spent 10 respective days in all 4 tables.

2.2.1 Telegraphic Transfer

There are 2 types of telegraphic transfer (TT).

1. Paid TT2. Issued TT

Issued TT

This process is used to transfer the amount from main branch to another branch. On drawing of

this voucher on other branch of NBP, bank receives following charges from customer.

Bank gives different codes to sending different types of TT. If any bank who has not the facility

of telegraphic transfer can avail the facility of telegraphic transfer by paying some charges to

national bank. Sometimes state bank exempts the bank to pay the charges of TT to national bank.

I worked on this seat for one day and I learned how to make voucher for very expenses which

bank is taking from other bank or from the customer. In this Transaction bank will debit

NATIONAL BANK GENERAL ACCOUNT and other bank will credit NBP general account. A

contra entry is passed against those charges which bank receives from the customer or other

bank.

Paid TT

Paid TT is the procedure to pay the amount of Telegraphic transfer which we received from the

other branch of national bank. In this procedure bank will credit the NBP general account and

debit the account of the customer or bank for which bank receives the IT.


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2.2.2 Pay Order (PO)

Pay order is an instrument which is made to pay the amount with in the city. This is a type of

security that nobody can deny to receive the payments from any person because bank has a

complete record of all these things. Payment order is made for the person on its special request

so bank took some charges for it. And it is necessary that person should have its personal account

in NATIONAL BANK (main branch civil line Faisalabad). When bank will make PO it will

credited the account of that person with some specific charges against the debit of the payment

order. When receiver of PO who has not his account in main branch will present his PO in own

branch it will be again presented in front of bank (bank of payee) and bank will clear and check

that PO and amount will be paid. Bank will charge the commission in following manner

100 rupees for any customer who has not its account in MAIN BRANCH Rs.50 for account holder Rs. 25 for students No commission will be charged against the PO of military officer and government

department.

2.2.4 Mail Transfer

Mail transfer is also an instrument to transfer his money from one branch to another. Mail

transfer is the responsibility of the bank to transfer the amount within a day to concerning party .2.2.5 Demand Draft

Issuing Of DD

DD is issued by the bank will not remain in the custody of banks but it will be in the custody of

the customer and customer will take the liability of this instrument in case of lost or theft. For

issuing of the DD,bank, bank will take the same charges as it takes charges for the payment

order.

Demand draft is also an instrument, which is made in favor of a particular arty. After making this

instrument bank is liable to pay this amount on the presentation of this instrument. This

instrument can be paid at any time. There are three types of demand draft.

1. DD which transfer through a/c to a/c.2. DD which is presented by a person and cash is drawn on parties account.3. On DD we saw signature of two people of bank, amount figure and words and protect


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graph and date. DD is presented at any time and bank is liable to pay it. If transaction is

done between any institutions then on bank of DD, receipt payment is written and

otherwise payee's account will be written only. Following are the two types of DD

regarding the amount.

1. Junior Draft (up to 1 ------ 10000)2. Senior Draft (10000 ------ above)2.2.6 Clearing

Clearing is most difficult and crucial job in banking. Because clearing of the cheques and

afterwards giving the details of complete balance to state bank is the most vital work. In clearing

procedure bank took the cheques of a person who has its own account in NBP and accountholder

wants to take the payment from any other bank. So NBP perform this work on the behalf of the

account holder. He got cheques and through NIFT settled down his cheques with any other bank.

And balance will be shown in the daybook at the end of the day. Interbank transaction will not be

settled down by the State bank or NIFT

2.3 Foreign Exchange Department

In foreign exchange department I had met with Sir Umar who was Grade 1 officer. He deals the

foreign exchange department and also deal Saibaan Scheme.

The main function of foreign exchange department is to facilitate the import and exports by

opening up of letter of credit the bank provide this facility to its customers. There are two types

of facilities:

Fund based Non fund based Foreign exchange department also deals in the foreign currency.

2.3.1 Letter Of Credit

Letter of credit is a commitment on the part of buyers bank to pay or accept draft drawn upon

provided drafts do not exceed a specific amount.

2.3.2 WhyBanks Deal In Letter Of Credit


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The bank charge nominal commission on financing the import and export shipment. The main

benefits for opening it are:

Increased balances CommissionNew business opportunities

2.3.3 Other Services

Sale and purchase of foreign exchange Providing credit information to foreign correspondents Implementation of foreign exchange regulations Maintenance of non-resident account of foreign nationals

We were there to receive and checked the documents of the person who is wish to open

the according to rules and regulations stated by the bank and state bank of Pakistan.

CHAPTER 3

CONCLUSION LIMITATION AND RECOMMENDATIONS

3.1 SWOT Analysis of NBP

SWOT analysis is analysis of four important factors faced by an organization. These factors are

strengths, weakness, opportunities and threats. These factors play vital role in success or collapse

of an organization. In today's world only those organizations survive which has the ability to

manipulate these factors effectively to the best interest of organization. Of these, two factors are

in internal environment that are Strengths and Weaknesses, with an effort of management these

can be controlled to a great extent. While opportunities and threats are presented in external


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environment and need to be competed

Here is an outlook of SWOT Analysis of National Bank of Pakistan as an organization.

3.1.1Strengths

1. Good pay scale for employees as compare to other commercial banks which are goodincentives for recruitment of new employees.

2. Due to frequent visit of higher management to all Branches, good internal control ofmanagement on its Branch Network.

3. Regular training of staff about various operations of the bank, like computers.4. Largest network of branches in the country.5. Lowest Service Charges as compared to all other Commercial Banks of Pakistan.6. NBP act as SBP, and in some areas it work behalf of SBP.7. Cooperation among employees resulting in good working environment.8. Regular internal audit of all the branches by NBP internal auditors.9. NBP is the only bank which deals pensions, taxes and salaries of Govt. employees.10. Salaries, zakaat on behalf of Government.

3.1.2 Weaknesses

1. Lack of expertise of employees in computers for the storage of financial data and otherwork

2. Lack of competent employees.3. The outlook of branches is not up-to-date as compare to other commercial banks in

Pakistan.

4. Working Condition for employees are not good as there is lack of facilities in smallbranches.

5. All stationary of the NBP is printed in Karachi which results in delay to all branchesthroughout the country.

6. Very slow procedure of working process.


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7. Very slow procedure of upgrading of the employees resulting in very few chances forpromotion.

8. Due to get of computerized system the customer have to wait for a long time to get theircheques called.

9. Centralized decision making, therefore delay in making spontaneous decisions.

3.1.3Opportunities

1. NBP only Government based Commercial Bank in the Banking sector, in Pakistan, sothey can achieve any type of goal easily.

2. Act as right hand of State Bank of Pakistan for receipt taxes payments, and pensions. Sothey have big opportunity to utilize it.

3. NBP captured the only small accounts. If they do right things in their services then theyachieve also big accounts.

4. Lowest Service Charges as compared to all other Commercial Banks of Pakistan. Sothey can capture the more market in future.

5. Having better contact with central Government than any other Commercial Bank, NBPfaces less difficulty for approval of introduction of new schemes for its customers.

6. Being only Government Bank, it has special remuneration packages for its staff.7. National Bank of Pakistan does not have online banking facility which reduces the

overall customer service facilities.

8. No credit card facility for customer.

9. Lack of publicity for its products like students loan etc.

3.1.4 Threats

1. National Bank of Pakistan does not have online banking facility which reduces theoverall customer service facilities.

2. No credit card facility for customer.3. No customer credit facilities such as car loan, home appliances etc.4. Lack of publicity for its products like students loan etc.


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3.2 Limitation

Although NBP main branch was outstanding as far as working of branch is concerned. But I had

seen some problem still there. So thats why there were some areas that needed improvement as

the problems exist in branch result in a decrease in employee's efficiency and customer

dissatisfaction. Due to these problem the other banks create threat for this branch. Here are some

major problems:

1. Fewer computers in branch therefore increase in time for recording of all branchtransaction.

2. The old employee are not familiar with this equipment, like computer printers etc, due tothis there are many problems occurred.

3. Less space for customer's accommodations, especially in salary taking days. In salary andpension days the NBP is watchable place.

4. Buildings of NBP are not properly maintained. During internship in branch, renovationstarts. But in the of my internship they did not complete his work.

5. No customer relation department, resulting in difficulties faced by customers in rush daysto get guidance about various bank activities.

6. Inadequate furniture for staff and customers.7. No photo state machine for photo state of important bank documents at the time of need.8. Lack of employee's training on latest technology especially in a General banking.9. Lack of stationary supply on time as Karachi head office is responsible of delivering

printed stationary to all branches throughout the country.

10. No rest room for bank staff.11. There is no online banking systems.12. In National Bank of Pakistan, during my internship I have seen lot of post still is

required.

13. The employee of NBP not best in good attitude with their customers. It is a big problemfor the NBP. Due to this problem many customers are not satisfied and not want to deal


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in any kind of transaction.

14. No common prayer room for female staff.15. Absence of kitchen equipment e.g. fridge, microwave oven and many other things.

3.3 Suggestions & Recommendation

There are following suggestion and recommendations for NBP as I found during our practical

internship.

Increase sitting capacity in reception area. Employees training session also conducted. Computers should be available to all employees. These computers should be connected

through LAN so that employees can share information.

More employees should be send to attend short duration Information Technology Coursesand other courses.

Appointment of CRO'S to help customers about various activities of the branch. More rest room, prayers room and common rooms should be made for males and

females.

Bonuses should be given at branch level to motivate employees on their goodperformance.

Stationary provision should be made easily so that there should be no obstacle in work. There should be another ATM machine so that there should not be wastage of time.

CONCLUSION

Over all NBP is serving as a Back bone services performed by the Bank are according to

international standards. But there is a room at every point, the reason is that its the Bank under

the supervision and Governmental control. Some time influence of Governmental Policies and

action affects very badly to the Bank.

National Bank of Pakistan Civil Line Branch Faisalabad (0360) is a Main Branch that Controls

the affairs of all branches in the Faisalabad division. Over all financial position and the profit of

Branch is satisfactory, because Faisalabad is an industrial city, almost 70% business is based on


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cotton industry. They need credit facility for their operations, mainly this Branch Provides Credit

to them in the form of pledge of stock, hypothecation of stock, mortgage of property and letter of

credit for exports civil line Faisalabad gets profit on their credit (i.e. interest / mark up). This is

reality that as compared to other Big five Main Branches of Pakistan, Civil Line Branch

Faisalabad has a less deposit but it is still a 3rd

largest Branch of Pakistan that is generating

highest profit since 1960.


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REFERENCES

about us. (2011, augst 29). Retrieved augst 29, 2011, from nbp: http//www.nbp.com.pk

intro. (2011, augst 28). Retrieved augst 28, 2011, from wikipedia: http//www.wikipedia.org

WORK DONE BY ME

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