M USMAN KHAN
M SOHAIL KHAN
M UMER DOGAR
M EJAZ GADI
M SALMAN FARSI
M WASEEM JUTT
In and , internal control is defined as
a process affected by an organization's structure, work
and authority flows, people and
, designed to help the organization
accomplish specific goals or objectives.
National Bank of Pakistan is the largest commercial bank operating
The bank is engaged in providing commercial banking and related
services in Pakistan and overseas.
The Bank's services are available to individuals, corporate entities
its business portfolio is a major lead player in the
debt equity market,
corporate investment banking,
retail and consumer banking,
NBP headquarters in Karachi, Pakistan with over 1,254 branches
Participating in "World Bank" and "Asian Development Bank's"
lines of credit.
"To be recognized as a leader and a brand the same with trust, highest standards of
service quality, international best practices and social responsibility."
NBP will aspire to the values that make NBP truly the Nation’s 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.
GOALS: To enhance profitability and maximization of NBP share through increasing
leverage of existing customer base and diversified range of products.
Excellence in Direction
Excellence in Growth
Excellence in Performance
Excellence in Management
Excellence in Achievement
OVER VIEW OF THE ORGANIZATION:
10 Groups headed 9 Regions reporting to as many Regional Chiefs and 15 Single
Branch Zones headed by Zonal Chiefs; 12 corporate branches and 1,254 domestic
branches headed by Branch Managers control its field operations.
18 Oversea Branches
5 Representative Offices
1 overseas Subsidiaries
1254 Domestic Branches
6 domestic Subsidiaries
29 domestic regional offices
CREDIT AND ADVANCE
1. GENERAL BANKING DEPARTMENT:
General banking involves the following sections:
•Accounts Opening Section
•Cash dealing Section
•Lockers Handling Section
There are two broad categories of deposits. These are
1. Time deposit 2. Demand deposit
TYPES OF ACCOUNT/ DEPOSIT:-
Following types of accounts are open in NBP
•Current or demand account
•Call Deposit Accounts
•Foreign Currency Accounts
2 ACCOUNT OPENING SECTION:-
This section performs the following functions:
•Opening of Accounts
•Issuance of cheque books
•Closing of accounts
3 LOCKER SERVICE SECTION:-
There are four types of locker depending upon the size of lockers
operate in banks.
•Small size locker
•Medium size locker
•Large size locker
•Extra large size locker
4 CASH DEALING SERVICES:-
•Cash receipts for receive deposits.
•Cash payment for encashment of cheques.
5 CLEARING SECTION:-
•Short Credit Service,
•Local Short Credit and
•Outward Clearing .
6 REMITTANCE SECTION:-
•Mail Transfer .
2. ADVANCE DEPARTMENT:
TYPES OF ADVANCES:
TYPES OF LOAN:
The credit department of NBP has providing the following types
•Short term loans
•Long term loans
•Working capital loan
•Syndicate (project) loan
3. ACCOUNTS DEPARTMENT:
The main function of account department of NBP is to maintain general ledger accounts and after
the business hours the function of the account officer is to close books.
1) ROUTING OF EXPENSE VOUCHERS:-
VOUCHER SYSTEM: Voucher is a system, which is generally designed to provide strong internal
over the transaction, In bank two vouchers are used DEBIT VOUCHER CREDIT VOUCHER
2. PREPARATION OF DAILY ACTIVITY REPORTS:-
The main function of this department is to check daily transactions whether
cash, transfer of payments, billing, and clearing of all the departments.
It includes the details of the following:
•general ledger transactions
•Foreign currency related transactions.
•Fixed deposits transactions.
3. PREPARATION OF WEEKLY AND MONTHLY STATEMENTS:
Second major function of accounts department is the preparation of various
These statements are:
A. WEEKLY STATEMENTS
B. MONTHLY STATEMENTS
4. PREPARATION OF TAX PURPOSE STATEMENTS:
The department also prepares two statements for the purpose of paying tax on
monthly and annual basis.
4. BILLING & GOVERNMENT RECEIPT/ PAYMENT DEPARTMENT:
In this department all types of Government receipts i.e. Revenues, Taxes, Agriculture Tax,
Government Fees, EOBI Funds and Utility Bills are deposited.
1 Payment of Provident Fund
2 Payment of Benevolent Fund
3 Payment of pension
4 Collection of utility bills, property taxes, Challans
and dues of educational institution.
5 Payment of salaries
6 Payment of zakat
5. FOREIGN EXCHAGE DEPARTMENT:-
The foreign exchange department has four main parts on which the national bank works.
It consists of:
I. Imports and Exports.
II. Foreign remittance.
LETTER OF CREDIT:
2. FOREIGN REMITTANCE:
It includes local and foreign currency fund transfer. NBP also
provide the facility to its customers in remitting funds from one
place to another place.
At present bank provides the following instrument that facilitates
the transfer of funds.
•TT ( telegraphic Transfer)
• DD (Demand Draft)
• PO (Pay Order)
1. IMPORT AND EXPORT:-
National bank acts as an intermediary in the exports and imports between the two
There are four major types of contracts or term of payment that are being used in the
6. COMMERCIAL & RETAIL BANKING DEPARTMENT:
National Bank of Pakistan serving following product lines:
1) PREMIUM AAMDANI SCHEME: - Monthly Income Scheme
2) PREMIUM SAVER SCHEME:- Yours saving reward (PLS Saving Account)
3) SAIBAN SCHEME: - Open the Door to Your Dream Home (Home Financing)
Main features of this scheme are as under.
•Finance is available for:
•Purchase of Land + Construction
4) ADVANCE SALARY SCHEME:- Personal Loan
Take up to 20 times of Your Take Home Salary
5) CASH CARD SCHEME: - one card does it all
ATM + Debit Card
6) INVESTOR ADVANTAGE SCHEME:- easier financing, profitable trading
Financing Facility for Stock / Retail Investors
7) CASH N GOLD SCHEME:- Ancash and meet your needs
Ready Cash against Gold
8) KISAN DOST SCHEME:- Agriculture Made Easy
Agriculture Farming Program
9) KISAN TAQAT SCHEME:- promise of prosperity
Dairy Farm Scheme
10) PAKREMIT SCHEME:-
NBP's Internet Based Home Remittance Service
•Lowest Internal Control and Compliance System, SBP
rated “Marginal” which is alarming for the Bank.
•Unsatisfactory corporate culture of the Bank.
•Less number of Online Branches.
•Ineffectively use of technologies i.e. Information
•Shortage of staff- per employee customer is very high
•Technical education and training of staff is insufficient
The workload in NBP is not evenly distributed
The primary objective of NBP was to purchase jute from
the growers in the former East Pakistan and also to perform
the commercial banking functions in the country.
The strength of this bank is that it is acting as Agent of
State Bank of Pakistan, providing Agency Arrangements for
different government organizations include WAPDA and PIA,
Profitability and a vide coverage throughout Pakistan.
The challenge it is facing is currently the lack of
implementation of rules and regulations that may lead to
weak organizational culture, old organizational culture, no
regular promotions practices.
As analysis shows that NBP is a most growing organization
with highest return on capital, largest market share amongst
all Pakistani banks and cost to income ratio is the highest in
banking sector. But there is further need for improvement to
overcome weaknesses and to maintain its position as an
“Asian Tiger” in banking field.