Final Intern Report

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InternshipReport2014|9/15/2014
Internship Report 2014
Table of Contents:
Topic Page No:
Title page 4
Letter of Undertaking 5
Scanned Copy of Internship Report 6
Dedication 7
Preface 8
Acknowledgement 9
Executive Summary 10
Brief History of NBP 11-12
Over view of the organization 12
Introduction 12-13
Vision & Mission & Goals 14-17
Nature of the Organization 18
Business Volume 18
Product Lines 19
Competitors 20
Board of Directors 21
Financial Highlights 22

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Organization Structure 23
Organizational Hierarchy Chart 23
Number of employees 24
Main Offices 24
Introduction of all departments 24-25
Organizational Structure 26
Plan of internship program 27
Brief introduction of branch 27
Names of Departments 27
Starting & Ending Dates of internship Program 27
Training Program 28
Detail Description of operations/activities 28-29
Detail Description of the tasks assigned 29-31
HR Department of NBP 32-33
Structure of the HR department 34
Department Hierarchy 34
Number of employees working under HR department 34
Mention any sub-department if exists under HR department 34
Functions of HR department 35
Human Resource Planning & Forecasting 35-36

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Employees Recruitment & Selection 36-37
Training & Development 38
Performance Management 39
Employee Compensation & benefits 40-42
Organizational career management 43
Labor management Relations 44
Critical Analysis 45
PEST Analysis 46
Swot Analysis 47-48
Corporate Social Responsibility (CSR) 49-51
Conclusion 52
My Learning 52
Recommendations 53
References & Sources 54

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Internship Report
By
Shabnam Naz
MBH-12-36
MBA (HRM)
4th
Semester
2012 – 2015
Submission Date of Internship Report
15-09-2014
B
Bahauddin Zakariya University

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Scanned Copy Of Letter of undertaking

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Scanned copy of internship certificate

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Dedication:
ALMIGHTY ALLAH SUBHANA TALAH
&
HIS HOLY PROPHET
MUHAMMAD
(Peace be upon him)
&
ENDLESS LOVE OF MY
PARENTS MY TEACHERS
WHOSE PRAYERS HAVE ENABLE ME
TO COMPLETE MY PROJECT AND IN EVERY
FIELD OF MY LIFE
&
SPECIALLY SIR MUSTABSAR
&
MY BROTHER & SISTER WHO SUPPORTED ME A LOT.

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Preface:
Master in Business Administration is an practical experience that is an important
part to give students an opportunity to have experience of practical field. Unless the
students experience the novelty of practical work, their knowledge of what they
study in theoretical courses remains incomplete. The most important point in an
Internship Program is that the student should spend their time in a true manner and
with the spirit to learn practical orientation of theoretical study framework.
This report is on my experience at National Bank of Pakistan. In this report I have
tried my best to give details about the Bank’s working and the functions of different
departments of the bank.

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Acknowledgement
All the Praise to Allah, the Most Merciful
I am grateful to almighty Allah for enabling me to complete the work presented in this report. It is
through his unending mercy that this task moved towards success. This is my first effort of my
carrier.
I am thankful to the staff of NBP Main Branch Multan. Specially officers who give me the detail
information of their work in NBP. I am also grateful to my honourable teachers for teaching me
so that I observe things practically which I read in books. I always wish prosperity for them and
for this institution.

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Executive Summary
National Bank of Pakistan is a government Bank. National Bank of Pakistan was established on
November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope with the
crisis conditions which were developed after trade deadlock with India and devaluation of Indian
Rupee in 1949. The nature of responsibilities of the Bank is different and unique from other
banks/financial institutions. The Bank acts as the agent to the State Bank of Pakistan for handling
Provincial/Federal Government Receipts and Payments on their behalf. The Bank has also played
an important role in financing the country’s growing trade, which has expanded through the years
as diversification took place. Its head office is in Karachi. It has over 1256 branches all over in
Pakistan.
The main purpose to done internship in NBP is to understand that how any organization deal with
their customers and how they serve in banking sector of Pakistan. During my MBA I learn a lot
but never got practical experience to work in any organization. And it is also a compulsory part of
my education (MBA) to get practical experience. So my department IBF gave me this opportunity
to avail practical experience. Specially Sir Mustabsar that are encourage me everytime. And I had
avail a chance to done my internship in NBP Main Branch.
During my eight week’s internship I learn some personal practical experience of professional life.
I work in different departments of NBP such as: credit department, remittance department,
operation department, deposit department, government sector, foreign department, advance salary
department. So in my internship report I discuss the NBP as a whole. But as per my area of
specialization is HRM so my report is basically the analysis of the employees position and
performance, structure of HR department, functions of HR department, HR planning &
forecasting, Employees recruitment & selection, Training & development, performance appraisal,
Labor management relations, SWOT Analysis, Conclusion, Recommendations. During working
with NBP employees it was a great experience for me to work in NBP and it was a great
opportunity of professional insight which helps me in future.

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Brief History of the NBP:
 1949 National Bank of Pakistan (NBP) was established under the National Bank of
Pakistan Ordinance 1949 and was 100% govt.-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.
 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities
between 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 concomitant
consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947).
 1977 NBP opened an offshore brain Cairo.
 1994 NBP amalgamated Mehran Bank (est. 1991).
 1997 NBP's 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 UBL 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.

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ISLAMIC BANKING:
First Islamic banking branch of NBP started its operations in Karachi on December 15, 2006.
 Two more branches started operations by the end of 2007 in Peshawar and Lahore.
 At present, eight Islamic banking branches are functional all over Pakistan having Group
office at Karachi, Pakistan.
 Mufti Abdul Sattar Laghari is a Shariah Advisor.
 Mr. Shafiq Khan is newly appointed Group Chief of the Islamic Banking Group.
 Mr. Sarfaraz Ahmed is Business Head.
 Mr. Syed Muhammad Shahid is Operations Coordinator and Master Trainer for HR.
 Engr. Muffaz Rana is Operations Officer at Islamic Banking Branch - 2140 - Karachi. He
has a Telecommunication Engineering degree from FAST-NU, MBA in Finance from
SZABIST, NIBAF in IBCC from State Bank of Pakistan, PGD in IBF from Centre for
Islamic Economics & JAIBP from Institute of Bankers Pakistan accredited by UK’s
Chartered Banker Institute.
Source: http;//en.wikipedia.org/wiki/National Bank of Pakistan
Overview of the Organization:
a) Introduction:
The National Bank of Pakistan (NBP) is a major Pakistani commercial bank with headquarters
in Karachi. Although state-owned it operates as commercial bank, while still continuing 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. The bank provides both commercial and public sector banking services. It is
a lead player in the debt equity market, corporate investment banking, retail and consumer banking,
agricultural financing, treasury services. As of 2012 it has 1,280 branches across Pakistan with
assets of approximately USD 12.293 billion. It also operates a number of office overseas that
include Beijing, Tashkent, Chicago, London and Toronto. Its subsidiaries include NBP Capital,
NBP Modaraba Management Company, NBP Exchange company, Taurus Securities, NBP Almaty
and others.
National Bank of Pakistan has developed a wide range of consumer products, to enhance business
and cater to the different segments of society and meet its social responsibilities. Some schemes
have been specifically designed for the low to middle income segments of the population. 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. It has also put in place a remittance service
for overseas Pakistanis to send their money back to Pakistan.

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The bank also runs the Annual Awards for Excellence in Literature that confer awards to the best
books in Urdu and in all prominent regional languages. The Bank is also the largest sponsor of
sports in Pakistan.
The Bank saw significant growth between 2000 and 2006. In 2006, total assets were estimated at
PKR 635 billion, while deposits have grown to nearly PKR 502 billion. Pre-tax profit rose to PKR
26 billion. Earnings per share have jumped to PKR 24.01. The increase in profit was achieved
through strong growth in core banking income. Interest income increased by PKR 10 billion
through growth in the loan portfolio as well as increase in spreads. Advances increased by PKR
48 billion to PKR 316 billion.
Awards & Achievements:
 “Bank of the Year” awarded for the year 2010 by the world renowned “The Banker”
magazine owned by the Financial Times Group, London.
 NBP is awarded “President of Pakistan Trophy”, a top slot award by Federation of
Pakistan Chambers of Commerce and Industry in 2010.
 Also awarded by the Lahore Chambers of Commerce and Industry in 2010.
 Among the global leading banks, NBP is the only Pakistani bank appearing in top 500
banks of the world in “The Banker” magazine owned by the Financial Times Group,
London.
 World’s Best Foreign Exchange Bank 2008” awarded by the world’s leading
financial journal “Global Finance”. Etc

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b) Vision & Mission:
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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Mission
NBP will aspire to the values that make NBP truly
the Nation’s Bank, by:
Institutionalizing a merit and performance based
culture.
Creating a distinctive brand identity by providing
the highest standards of services.
Adopting the best international management
practices.
Maximizing stakeholders values.
Discharging our responsibility as a good
corporate citizen of Pakistan and in countries
where we operate.

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Core Values
Highest Standards of Integrity
Institutionalizing a teamwork and performance
culture
Excellence in services
Advancement of skills for tomorrow’s challenges
Awareness of social and community
responsibility
Value creation for all stakeholders

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Goals
To enhance profitability and maximization of
NBP share through increasing leverage of
existing customers base and diversified range
of products.

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c) Nature of organization (NBP):
National Bank of Pakistan is an organization that accepts deposits and repays to its customers on
demand. Bank borrows money at lesser rate of profit and lends it to the borrowers at a higher rate
of markup. Bank cannot lend all the money that has been deposited with it. It has to keep certain
amount of the total deposits in cash in order to meet the cash requirements of the individuals and
business concerns. It has to keep a certain ratio between liquidity & profitability to run its business
smoothly and efficiently. National Bank of Pakistan is an established bank and also a commercial
bank. NBP make financing on the projects including technical assistance, term finance and short
& long term loans to the business industry. NBP is also financing on seasonal crops like cotton,
wheat, rice, sugarcane, tobacco etc.
National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set higher
standards of achievements. It is the major business partner for the Government of Pakistan with special
emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large network of branches locally,
internationally and representative offices.
National Bank of Pakistan (the Bank) was established under the National Bank of Pakistan (NBP)
Ordinance, 1949. The Bank provides all types of banking services to the government and private sectors.
The Bank also handles treasury transactions for the Government of Pakistan as agent to the State Bank of
Pakistan (SBP). The Bank has 1404 (1999: 1408) branches in Pakistan and 24 (1999: 23) overseas branches
(including the Export Processing Zone Branch). Under a Trust Deed the Bank also provides services as
trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT in
consideration for annual service charges and commission.
 BUSINESS VOLUME:
Number of employees (designation vise break up)
DESIGNATIONS NO.OF EMPLOYEES
Executives 800
Officers 6940
Clerical 4840
Non-clerical 2850
Others 1460
Total Employees 16,890

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d) Product Lines:
Established On 1949 under NBP Ordinance of 1949
Branches 1,289 and 22 Overseas branches
Type Semi Government
Manpower More than 16,457
Industry Banking
Slogan The Nation’s Bank
Area served All over the Pakistan and other countries
Head Office
NBP Building, I.I. Chandigarh Road Karachi,
Pakistan
Products
Protection Shield Home
Pak Remit
Kisan Dost
Cash n Gold
Investor Advantage
Cash Card
Advance Salary Saibaan
Karobar, Premium Aamdani,
Premium Saver etc.
Website www.nbp.com.pk

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e) Competitors:
Competitors of NBP in Pakistan are:
 The Bank of Punjab
 Askari Bank Limited
 Bank Alfalah Limited
 Allied Bank Limited
 Bank Al-Habib Limited
 Faysal Bank Limited
 United Bank Limited
 Standard Chartered Bank Ltd
 Silk Bank Limited
 MCB Bank
 Habib Bank Limited

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f) Board of Directors:
Chairman: Mr. Muneer Kamal President: Syed Ahmed Iqbal Ashraf
Mr. Tariq Kirmani Mr. Shahid Aziz Siddiqi Mr. Zahid Hussain Wasiq Mehmood
Mr. Farrakh Qayyum Rana Assad Amin Dr. Shujat Ali

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Organization Structure:
a. Organizational Hierarchy Chart:

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b. Number of employees:
More than 16,457 employees are working in National Bank of Pakistan.
c. Main office:
Main office is in Karachi.
In Domestic 1256 Branches.
d. Introduction of all departments:
1. Account Opening Department:
These deposits are lent out to different parties. Such deposits creation is
done through opening account in bank. Accounts are open by the followings:
An Individual
Business Partners
Government Sector
2. Clearing Department:
This department defined as: “A system by which banks exchange cheques
and other negotiable instruments drawn on each other within a specific area
and thereby secure payment for their clients through the clearing house at
specified time in an efficient way”.
3. Remittance Department:
This department deal:
Demand Draft (DD)
Pay Order (PO)
Outward bills for collection (OBC)
Inward bills for collection (IBC)
4. Cash Department:
All cash deposits and withdrawals entries of account holders of NBP.
5. Accounts Department:
This department is responsible for budgeting and all the transactions that are take
place in the bank like physical or computer generated reports and save it as a
physical prove that these transactions are take place in the bank.

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6. Credit Department:
Youth Loan
Gold Loan
Industrial Business Loan
7. IT Department:
Verification of N.I.C online for the purpose of account opening
Computerize record keeping of Accounts
Generate report of daily transactions
8. Foreign Exchange Department:
Foreign Currency Accounts
Imports
Exports
9. Advance Salary Department:
This department deal in to give advance salary to government employees.
10. HR Department:
The Bank has challenging work environment where merit & performance help the
individuals to explore their true potential. NBP is the employer of choice. The
whole NBP family comprises of committed and dedicated members with passion
to serve in their respective functional areas. HR department work to provide
benefits to the employees. The responsibility of HR department is to check the
employees performance on daily basis & select rewards according to their
performance level. All the functions of HR are apply in NBP. These functions are:
Recruitment & Selection
Interviews
Training
Compensation & Benefits
Performance Appraisal
Promotions
Motivation

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e. Comments on organizational structure:
In any management of the banks, the board of directors is at the top of the controlling body.
But in NBP since there are no private shareholders now, so there is no general meeting of
the shareholders and no elected directors.
Board of Directors:
The board has limited administrative powers because after the Nationalization Act 1974,
most of powers are transferred to the Banking Council and Executive Board.
Executive Board:
The general direction & supervision of the affairs of commercial banks lies in their
respective Executive Boards.
Chief Executive:
He is the administrative head of a bank and presides over the meetings of Executive Boards.
Divisional Chiefs:
Each division of the bank is placed under the supervision and control of Divisional Chief
(also called the Senior Executive Vice President or Executive Vice President).
Provisional Chiefs:
Each headquarter is situated in each province e.g: Sindh (Karachi), Punjab (Lahore),
Balochistan (Quetta), Khaibar Pakhtokhawan (Peshawar).
Circle Executive:
Directly under the control and supervision of Chief Executive.
Branch Manager:
Each branch manager has to control his branch affairs.

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Schedule of My Internship Program
I have worked with the Multan Main Branch of National Bank of Pakistan situated at
Kutchehry Road Multan. Main Branch consists of many administrative departments which
control the specific region under the Main Branch. It also coordinates with the Head Office.
Names of Departments under Main Branch:
Human Resource Department
Credit Department
Administrative Department
Operation Department
Deposit Department
Foreign Exchange Department
Remittance Department
Clearing / Government Department
Advance Salary Department
IT Department
Etc
Starting & Ending Dates of each Department in Internship Program
Sr Names of Departments Duration
From To
1 Credit Department 03-07-2014 19-07-2014
2 Remittance Department 21-07-2014 01-08-2014
3 Account Opening Department 01-08-2014 05-08-2014
4 Foreign Exchange Department 06-08-2014 12-08-2014
5 Government Department 13-08-2014 18-08-2014
6 Deposit Department 19-08-2014 21-08-2014
7 HR Department 21-08-2014 21-08-2014
8 Advance Salary Department 25-08-2014 25-08-2014
9 Administrative Department 25-08-2014 26-08-2014

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Training Program:
 Detailed Description of the operations / activities:
Deposit Section:
 Cheque Passing
 Signature Verification
 Last Day Book Checking
 Security Documents Maintenance
 Arrangements for Account Deposit
Advance Salary Section:
 Giving advance salary (20 salaries).
Foreign Exchange Section:
 Foreign Currency Accounts
 Foreign Currency Accounts Maintenance
 Foreign Currency Inward Remittances
 Foreign Currency Outward Remittances
Account Opening Section:
 Individual Accounts
 Joint Accounts
Bills & Remittances:
 Demand Draft (DD)
 Telegraphic Transfer (TT)
 Mail Transfer (MT)
Clearing Section:
 Inward Clearing
 Outward Clearing

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Government Section:
 Pension Payments
 Tax Collection
Credit Section:
 Youth Loan
 Loan on Gold
 Loan for Industrial Business
Administrative Section:
 Stationary Expenses
 Employees related Benefits
 Other Expenditures
HR Department:
 Apply all Functions of HR
 Development of Employees
 Unions of NBP
Detailed Description of Tasks/Duties:
During my internship I have completed the following tasks / duties:
Credit Department:
 Maintaining files of PM Youth Loan. Complete Youth Loan Files by Punching, Naming,
Stamping, Arranging in ascending order & verifying customer’s signature. Guiding or
dealing customers about PM Youth Loan. Making profile information on page of one by
one customers.
 Worked 8 weeks in Gold Loan Section. Making Debit vouchers of three types. Making
Demand Draft slips of different cities. Then list out these DD’s details in register. Writing
vouchers of customer’s detail, then stamping and then photocopy these vouchers to keep
record. Also making posting letters of 5 ledgers (registers) then keep vouchers in it & close
it by gum & stamping on it. Checking lists of Nill accounts & select the running accounts
from the register. Send message to all customers to tell them that there time period of loan
is come to an end so that they come & return the loan or renewal their accounts.

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 Sir Tariq Ansari only give introduction of their work because he is very busy & head of
credit department. He maintain all documentation of customers then punching in files &
computer then visit those customers business place to verify them then after a lengthy
procedure he pass out these files for loan.
Remittance Department:
 Work in online money transfer section. Helping the sir in giving hard copy of receiving
amount of customers. See all the procedure of receiving amounts that are sending by the
customer’s family members who live outside the country.
 Demand draft section only do manual working by list out the cheque’s detail in register.
Account Opening Department:
 See all the procedure of opening accounts in PC. Getting all the details about individual
& joint opening account. See all the manual registers & see the working. Then sir tell
about the ATM machine working & about ATM card issuance.
Foreign Exchange Department:
 During the working in this department I have maintained the foreign currency accounts
in manual register. Only do manual working in this department. Sir Waseem tell about
the LC and then give us to see real documents & check out the details.
Government Department:
 In this department I do not work only officers give introduction of their work. This
department exists only in the Main Branches of NBP everywhere. Their main work is
to collect all the revenue and give details to the State Bank of Pakistan.
 Also dealing in paid pensions to ex-government officials & take cash receipts of
chalans & fees and also work for tax collection.
Deposit Department:
 Arranging the cheques in ascending order. And sir give introduction of their work. I
see their work that he has passed the cheques by verifying signature and account tally.
Then customers go to another officer who give them token and then they take cash on
their token numbers.

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 I also do working in cashier department. I do very much manual working here 3 days.
Advance Salary Department:
 Sir Kashif only gives introduction of their work. Tell that how they complete the
documentation of customer of advance salary. Only government employees take
advance salary. Minimum 3 months are required in this procedure.
Clearing Department:
 I have seen the cleared cheques that belong to the Main Branch and was submitted in
other banks which is called the inward clearing.
 I have seen the cleared cheques that were submitted the main branch but belongs to
some other banks which is called outward clearing.
Administration Department:
 Sir Jewan Khan gives the introduction of their department. He deals all the expenditure
that a branch have and give benefits to employees etc.
HR Department:
 Mam Rabia give detail introduction about HR department which is discuss in detail.
She tell me that the working of HR department is confidential so that I can’t work in
this department. She used SAP software in their PC.

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HR Department
Of
NBP

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Structure of HR Department:
HR Department Hierarchy
General Manager HR
Incharge HR
Executive HR
5 Officers of HR
1 Clerical Staff HR
1 NON Clerical Staff HR
Number of Employees in HR Department:
There are 10 employees under HR department of Regional Office Multan.
There is no sub-department under HR department.

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Functions of HR:
Human Resource Planning & Forecasting:
HR department of National Bank of Pakistan forecast the demand and supply of workforce.
HR department systematically review the human resource and ensure that how much
number of employees are available in the time when needed.
1. Human Resource Planning Process:
 Determine the organizational mission:
Organizational mission provides the National Bank of Pakistan’s business scope and
operations.
 Scan the Organization environment:
Scanning the environment means to identify the Strengths, Weaknesses, Opportunities
& Threats that can NBP have to face. This is also called SWOT analysis.
 Set Strategic Goals:
Set specific long term and short term goals and objectives. These goals are specific,
challenging and measureable.
 Formulate a strategic Plan:
Strategic plan designed are the steps that formulate to meet the strategic goals and
departmental goals.
These are the steps of HRP process:
 Determining the objectives
 Defining skills required to meet objectives
 Determine additional human resources requirements in light of current HR
 Develop action to meet the anticipated HR needs
2. Forecasting HR Requirements:
This forecasting indicates the requirements of HR that can be needed by the National Bank
of Pakistan in future to achieve goals.
3. Methods to forecast HR needs:
There are four methods to forecast HR needs.
 Zero-base forecasting:
Zero-based forecasting means that the NBP considers the current level of employment
as the starting point for determining the staff needs in NBP.
 Bottom-up Approach:
To get aggregate forecast of employment needs this method is best because in this
method each successive level of the NBP starting with the lowest and forecast its
employee requirements.

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 Mathematical Method:
NBP also uses mathematical forecasting Human Resource needs. It defines the
relationship between the demand and numbers of employees needed.
 Simulation:
It is a technique for experimenting with a real world situation through a mathematical
model representing that situation.
Employees Recruitment & Selection:
Recruitment:
Recruitment is the process in which an organization discovers the potential candidates
under vacancies. To complete this process every organization has its own requirements and
policies.
According to the recruitment policy of NBP, the requirements are:
 Candidate must be a citizen of Pakistan
 He/she must be graduate
 He/she have the required capabilities that is necessary in job
 Sources of Candidates:
There are two sources of candidates. One is internal and other is external. Internal are
within the National Bank of Pakistan and external are outside of the National Bank of
Pakistan. Explanation is as under:
Internal Source:
Internal source means to fill the vacant vacancies by promoting the existing
employees working in NBP.
Some are the forms of internal hiring in NBP:
 Within the bank Promotions
 Job Posting
 Contacts & Referrals
External Source:
External source means to hire employees from various external fields. In
this method jobs are offered through newspapers and internet and candidates apply
on the vacant posts. National Bank of Pakistan contact agencies or 3rd
party to hire
employees for external source.

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Employee Selection Process:
Candidates apply against three posts and NBP scrutinized the application and calls
the eligible candidates for test and interview. Candidates who pass the test they
have call for group interview. The selected candidates have submit the following
documents in Head Office:
 Bank Secrecy Bond
 Educational Documents
 Security Bond
 Service agreement Bond
Selected candidates have to remain in probation period for 6 – 9 months.
 NBP do recruitment through Institute of Bankers Pakistan (IBP). IBP is a subsidiary of
SBP.
 IBP do short listing & conduct tests & then announce the results.
 A group of panel of NBP take interviews from selective candidates & then select the regular
employees.
 For contractual employees contact with outsourcing companies.

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Training & Development:
Training and development is the main concern of HR department which leads to improve
the skills of employees and customer service and to maintain the standards of NBP.
 For Training there are 4 staff Colleges of NBP all over the Pakistan, i.e.: Karachi, Lahore,
Islamabad & Peshawar.
 Induction Training is a classroom training & this is for 21/2 months.
 On the Job Training is for 2 or 8 weeks.
 Contractual based employees not provide training.
 PR (Potential Regulators): When SBP changes rules & regulations then give training
according to new regulations.
Training needs assessment:
Following assessments needs to conduct the successful training:
 Customer satisfaction survey
 Customer complains
 New technology
 Interview with managers
 Self-assessments
 Company records
 Observation etc.
Junior officers and clerical staff trained through a series of training programs during
the first ten years. After 1958, NBP establishes staff colleges in Karachi, Lahore,
Peshawar, and Islamabad. These colleges train the growing strength of the employees
to meet the competition.
Employee Development:
Human Resource Department of National Bank of Pakistan operates to increase
existing skills of the employees in order to achieve its objectives.
National Bank of Pakistan has two training techniques:
First technique is to develop midterm plan to facilitate new clients and middle level
employees.
Second technique is to develop a long term plan for training and development to
enhance the career of high level employees.

39
Performance Appraisal:
 Only Supervisor do performance appraisal. He give grades accordingly the performance of
employees. These grades are as follows:
A: Outstanding
B: Very Good
C: Good
D: Satisfactory
E: Not Satisfactory
 Profit Bonus
 Eid Bonus
Settings performance standards and expectations:
Following are the conditions that can be consider when setting the standards of
performance.
1. Performance standards must be based on the job not on the person doing the job.
2. Performance standards must be established at the points which are achievable.
3. Employees must understand the standards of performance.
4. Employees and supervisors must accept the standards of performance.
5. Standards of performance should be time-oriented.
6. Performance standards must be written.
7. Performance standards must be flexible to accept the change or revision.
In NBP only supervisor judge the performance of the employees and give grade
according to the performance of employees then according the performance, the
performance appraisal would be made.

40
Employee Compensation and benefits:
National Bank of Pakistan compensate its employees in the following way:
 Medical Facility for employer parents, wife & children.
 House Building Loan
 Motor cycle & Car Loan
 Computer or Laptop Loan
 Educational Facility for children that is the part of salary.
 Scholarship facility for children
 Retirement Benefits
 Group Insurance
 Death Insurance
 Overtime pay
 Profit sharing
Compensation Package:
Compensation Package according to 2013 are as follows:

41
InternshipReport2014|9/15/2014 Basic Pay - per month Rs. 2,258,000/-
House Rent Allowance - per month (55
% of Basic )
1,242,000/-
Gross Salary per month
(to be reviewed annually) 3,500,000/-
In case of fixed compensation for 3 years, monthly gross
salary will be Rs. 4,000,000/- instead of Rs. 3,500,000/-
Utilities Utilities (electricity, gas, water, residence telephone(s) /
mobile phone(s) and any other utilities pertaining to his
residence) at actual.
Security Security arrangements to be provided by the Bank.
Deployment of four (04) security guards i.e. two security
guards on 12 hours shift basis at residence.
Vehicles, Fuel and Maintenance Two cars (one 3.5 litres and one 2.5 litres) provided by the
Bank - Both vehicles fully insured and maintained by the
Bank. President to purchase the cars at 10% of cost on
expiry of contract or at written down value on separation.
Fuel for the Bank provided vehicles at actual.
Drivers Two (02) Drivers or Salary of Two (02) Drivers in lieu thereof
@ Rs.25,000/- per month = Rs.50,000/- per month (on
reimbursement basis)
Official Entertainment At actual
Domestic Staff
Salary of Five (05) persons @ Rs.18,000/- per month =
Rs.90,000/- per month (on reimbursement basis )
Mobile phones Mobile Phones provided by Bank.
Business Travel
Overseas:
Domestic Travel:
Business class fare, 5 Star Hotel expenses at actual.
Per diem for overseas with a maximum of US$ 325 per day.
Economy Plus class fare, 5 Star hotel expenses at actual
Annual Leaves Annual leaves 30 days and Medical / Sick leaves 18 days
per annum. Annual leaves may be accumulated, which is
en-cash able on the basis of last drawn gross salary.
Medical/Dental Medical / Dental coverage for self and dependent family
members within Pakistan and re-imbursement of all
expenses at actual. Full fledged dental treatment facilities at
cost.
Life Insurance Life insurance coverage to be provided by the Bank
(Amount Rs.30.00(M).
House and Garden Maintenance House / Garden fully maintained by the bank at actual
House Furnishing Allowance Amount equivalent to one gross salary payable once during
tenure of three years.

42
Performance Bonus Performance Bonus of up to Rs.28 million for the first year of
contract. This will be reviewed each year of the contract
(to be determined by the Board and approved by the
shareholders) payable based on performance against key
performance indicators to be mutually agreed.
Club Membership Club Membership (entry fee) for two clubs of incumbent’s
choice to be paid by the Bank. Subscription / other charges
of 3 clubs to be paid by the Bank
House Building Loan As part of the employment arrangement, NBP will take over
the unpaid portion of the existing house loan availed by him.
Terms and conditions applicable as in NBP.
Generator Facility at Residence One Generator to be provided by the Bank at residence.
Cost of fuel and maintenance to be paid by NBP.
End Service Benefits Gratuity to be paid at one month last drawn gross salary for
each year of service. 6 months or more to be treated as
completed year of service
Annual Salary Review Salary will be reviewed every year on the basis of the
Bank’s performance determined by the Board and approved
by the Shareholders.(if fixed compensation is opted for the
full 3 years contract then no yearly compensation review)
Separation from Bank’s Service In case of Termination of contract:
Six months’ notice period or salary in lieu thereof.
In case of Resignation:
Three months’ notice period or salary in lieu thereof

43
Organizational Career Management:
 Employee Job changes:
Employee job change in National Bank of Pakistan is done under its civil rules and
regulations. Promotion and transfer is done under the civil service rules and
regulations.
 Job changes with the organization:
NBP has designed many programs to meet the challenges of present day
requirements. Employees trained in a specific manners so that they could adopt new
job within the organization after acquire the training.
Promotion:
In 1979, promotion policy introduced based on three parameters:
1. Qualification
2. Period of service
3. Standard of service
In NBP the rules of promotion are as follows:
 After 3 years employees give promotions.
 If 4 years are passing & employee give no promotion then give him/her seniority
promotion.
 On the basis of Experience, Professional Qualification & Academic Qualification give
promotions to employees.
During my internship three officers are promote in which two officers are promote
from OG-III to OG-II & one officer is promote to OG-I to AVP.
Transfer:
Transfer are done to fill up the vacant positions to smoothen the working.
In NBP many employees of main branch is transfer to another branches of NBP according
to need.
Motivation:
Employees of National Bank of Pakistan are only motivated by salary packages or financial
rewards.
 Demotion:
If any employee violates the rules of the bank then he/she can be demoted. National
Bank of Pakistan can also demote the employees instead of layoff while facing
financial crises. Before demotion the hiring authority must give the prior written
notice mentioning the demotion reason.

44
 Separations:
When an employee does not want to remain a member of National Bank of Pakistan
then separations occur. But if the employee separate before the completing 5 years
then he/she pay back all the amount of bonds & certificates. If after completing 5
years of employment the employee want to separate from the NBP or move to
another bank or business then he/she would not be paid anything they can easily
move from the bank.
 Layoff:
Layoffs occur when there is surplus of employees in the bank. Layoff can be
defined as the temporary suspension or permanent termination of contract between
the bank and the employee.
 Termination:
Termination means the complete separation of an employee with National Bank of
Pakistan due to several reasons like, resignation by the employee, employee illness
or employee inability to work. Then the decision is taking by the NBP to terminate
such employee.
 Resignation:
If any employee of NBP wants to separate from the bank or want to resign from the
bank for any reason then after a procedure he/she would be resign.
 Retirement:
At the age of 60-65 employees would be given retirements. There are retirement
benefits provide the retire employees by the bank.
Labor Management Relations:
National Bank of Pakistan is very good in labor relations. Unions of National
Bank of Pakistan has great strength and HR department take great care of union
opinion.
There are two unions that are working in the NBP:
1. Staff Union (include clerical & non clerical staff)
2. Officer Federation (for salary packages fought in Head office)

45
Critical Analysis:
During my internship, my main goal was to provide my knowledge (theory),
various practical situations. This report is an essential part of the internship, as this
will help to better understand the working relationship between the working of bank
and what is written in books. The theory books written cases, not implemented as
it is.
 During my internship in National Bank of Pakistan I have observed that bank is
way behind in adopting the computerized system. Most of the staff members in
NBP are not familiar with the computer. Specially in Government department, staff
employees doing manual working there is less working on computer. Only 1-2
Personal Computers are keep in Government department.
 Customers focus is change in every department. In credit department, the customer
who have a reference the officer more focus on them. In Remittance or Cashier side
the customer focus are less. There are often seems to be bargaining among the
customers and the staff of NBP. The behavior of peons are very bad with customers.
 Every employee has their own PC but there systems are very slow and oftenly
systems are not working so that customers face difficulty and the employees are sit
free.
 In some departments the manual working are more than computerized working and
there is also lack of staff. In credit department, in the Gold Loan section only one
officer work. Their manual working is very much so that there is a need of other
employee or assistant which help him in their work. The burden of work is more so
that he take more work with internees. It so much time taking to do manual working.
 The 2nd
and 3rd
floor area is too much better and too much clean but the basement
area or government sector area there is no proper system of cleanliness. Employees
are old age and they smoking too much that makes the environment more dirty.
 There is a proper dress code for employees in NBP but every employee wear dress
according to their choice. Only few employees follow the dress code.
 The culture of NBP totally based on reference. Discipline are there in some
departments. The permanent employees are satisfied but the contract-base
employees are less satisfied.
 During the utility bills and pension dates law and order situation becomes worst
due to less control.

46
Pest Analysis:
Political:
 Privatization policy and deregulation.
 Impact of subsidized credit affecting and NCB’s.
 Employment practices, Unions, Associations.
 Political Interference and harassment.
 Incidents of high taxation on banking industry.
Economical:
 Constraints in mobilization of public savings because of inflation.
 Staff cost.
 Operating cost
 Bad debts
Social and Cultural:
 Inadequate human resources.
 Cultural strain to savings.
 Defaulter’s lobby.
 Declining education and work ethics.
 Inadequate accountability.
 Adequate empowerment.
Technological:
 Inadequate communication infrastructure
 Inadequate computer facilities
 Inadequate IT training

47
SWOT Analysis:
Strength:
 NBP works as an agent of State Bank of Pakistan because
SBP have not its own branches so that NBP works for SBP.
As well as NBP is a custodian of government capital and
government business owner and as well as custodian of
public money.
 NBP is old and sound financial institution among other
banks and high profitability and it is the lender of
government agencies.
 NBP is the first bank which has huge operational network
all over the Pakistan as well as abroad.
 NBP launch many products and services to their customer
so NBP try to improved the quality of life of our customer.
 Employees of NBP are strict follow the rules and
regulations impose by the bank. In this way the output of
the bank is enhances.
Weaknesses:
 Employees of the bank know that their job is secure so their behavior with customer is not
professional. NBP Employees rudely behave with customers and as well as with each other.
 Lack of computerized network which cause the more time consume, energy and mental
stress in rush face the employee. The bank lacks the modern equipment, outdated systems
and procedures.
 Being Govt. bank political pressure affects the negative way and provides the loan to the
customer under pressure which creates the negative affect on bank employee.
 The promotion and bonuses are powered by senior favouritism will and decision which
affect the employee’s performance negatively. That is why, Condition of Bank branches is
very poor and service to the clients is slow.
 Lack of modern financial/banking product, the bank falls far behind when innovative and
new schemes are considered. There are no proper system for advertisement & marketing
of products. Lack of IT infrastructure and sometimes IT system is hanged so bank could
not provide the information to their customer on time.
 Resistance to change and decision making process are slow.

48
Opportunities:
 N.B.P more trustable due to government bank so it has opportunity to improve itself and
increase market share among other banks.
 Now a days banking system is growing rapidly so N.B.P have opportunities to apply
advance standard and more contribute into the market.
 Now a day economic and business activities are increasing, N.B.P play roll in trade and
commerce for the benefit of their customer. N.B.P has vast opportunity to introduce new
products and services because its branches spread all over the Pakistan and it has large
number of customer.
 Now a day, a world becomes a global village due to advancement of technology
particularly in computer field. So N.B.P introduce new technology to provide the good
service of their customer.
 Develop organize the aggressive marketing plan for promotion the bank and its products.
Can lunch a marketing strategy and offer new and innovative products to capture the
business from other banks.
Threats:
 Number of commercial bank are opened, operating their business and provide same
facilities and product to the customer which provide N.B.P so It is threat for N.B.P.
 Competition with foreign bank because they offer many service to their customer are totally
free or minimum prices.
 Political influence is also threat for N.B.P because it is a government bank and political
pressure affects the performance of it.
 Customer satisfaction is very important for business but in N.B.P there are no proper
systems to remove the customer complaints for its satisfaction.
 N.B.P receive high interest rate when other banks offer lower interest rates. Interest rates
offered by N.B.P like interest on loan, extra higher service charges.

49
Corporate
Social
Responsibility

50
CSR
NBP has taken various initiatives that very clearly depicts its dedication towards its Corporate
Social Responsibility mission. The Bank is running a full-fledged CSR Program to benefit the
community at large mainly by investing in projects related to development of critical socio-
economic sectors. The foremost area of focus for CSR initiatives are directed towards promotion
of education, health, woman and child welfare, special persons, culture, sports and relief for
affectees of natural disasters. Various steps have been taken in this regard and Bank is investing
huge funds for bringing positive change and improving the quality of life of members of the
society.
It is truly a matter of pride that National Forum for environment and Health recognized the efforts
of NBP and awarded the CSR Business Excellence Award 2012. Also, NBP has been recently
awarded with the “Gold Medal on CSR” by President of Pakistan on the basis of overall
contributions and donations for charitable, social, educational and public welfare efforts.
NBP CSR Initiatives -2013
Construction of Lab & X-Ray Facilities at Noor Memorial Hospital Chakwal:
Wheel Chairs - Rehabilitation Center Muzaffarabad

51
NBP Teams Achievements-2013
Vocational Training for
NBP Captain receiving winners cupNBP victorious Team - National Hockey Championship-2013
Mohammad Sajjad won the NBP SnookerNBP Ladies Team receiving Cash Award on winning

52
Conclusion:
After completing my internship in National Bank of Pakistan my conclusion is that:
 Administration cost is very high in National Bank of Pakistan.
 There is lack of new technologies.
 Promotions seems to be late due to official arrangements.
 Staff of NBP is very cooperative with internees.
 NBP culture is reference based.
 All employees are gave their best to NBP.
 There is lack of staff in some department.
 There is a great problem of system error. When system error is occur all the work
has been stopped.
 The building of NBP of main branch is very beautifully made.
 I got great experience by working in NBP.
My Learning:
My learning of internship is that:
 Practical knowledge is totally different from bookish knowledge.
 The staff behavior should be soft with customers.
 Some customers are only come to NBP for time wasting and they sit free due to
system error whole day in the bank.
 The NBP staff of credit department is very cooperative with customer.
 All officers are very cooperative with internees.
 Overall it’s a great experience to work in National Bank of Pakistan.
 National Bank of Pakistan culture totally depends on reference.
 Promotions are held on reference based.
 My learning is that practical life is more difficult from study life. In every field we
have to face difficulties but when we work with patience and more sincerity then
we gain success. There is need to be live balanced then we gain our objectives and
live happy and calm life.

53
Recommendations:
1. National Bank of Pakistan need to adjust itself with the rapid changes appearing in
the market as other banks are adopting the changes as they occur. National Bank
must make efforts towards modern banking.
2. The bank should improve the quality of training of its employees and the integrity,
controls and efficiency of its systems, processing and financial reporting.
3. Management of NBP must contribute their part to train their staff so that they focus
on customers about facilitating with good manner.
4. Procedure of taking services from the NBP need to be simpler instead of lengthy
procedure.
5. NBP, being the only lending arm to the government for public sector development
should design, develop and deliver product and services for economic growth.
6. The NBP should adopt modern banking tools and techniques. Quality leadership,
clear vision, investment in IT infrastructure and human resource development.
7. The bank should develop software for pension disbursement.
8. The NBP should provide support to the Micro, Small and Medium enterprises so
that reduce the unemployment and helping to create a more equitable distribution
of wealth.

54
References:
Officers of NBP
www.nbp.com.pk
http;//en.wikipedia.org/wiki/National_Bank_of_Pakistan
http;//investing.businessweek.com/research/stocks/financials/financials.asp?ticker=NBP;
PA
My own observation and experience and gathered information during working in NBP as
internee for eight weeks.

Final Intern Report

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