Malik 2

1 Internship report on NBP.Service Industry Branch Gujrat (The Nation‟s Bank )
FAIQA LIAQAT (11042454-016)
Internship Report submitted to the faculty of Management & Administrative Science in Partial
Fulfillment of the requirements for the Associate Degree (Commerce) of Business Administration.
Associate Degree (24)
Commerce & Accountancy (54)
(Course Code MGT-403)
Submitted By:
Faiqa Liaqat
Rol#11042454-016
Name of Program Coordinator:
Sir Amir Mehmood
Signature:
---------------------
Campus:
Fatima Jinnah College Gujrat
Date of Submission
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2 Internship report on NBP. Service Industry Branch Gujrat(The Nation’s Bank)
Acknowledgement
For the completion of our report I am indebted to plenty of people for their very sincere
cooperation that they extended to me at various stages. First and foremost problem that every
student faces is the selection of a Report. I am very thankful to my friend Sara for helping me
out in time of confusion. During our course and the execution of my report, I had a real chance
to learn from his vast experience and immense knowledge.
I am very thankful to staff members of National Bank of Pakistan Service Branch, Gujrat. That
they have guide and provide me valuable information regarding my report.
Finally I am thankful to the most merciful and Almighty Allah who gives me the strength
that I fulfill my task. With efficiently.

11042454-016 1
Acknowledgement 2
Executive Summary 7
Methodology 8

 Primary Data
 Secondary Data
Part 1 9-45
Introduction 10-11
 Scope of the study 10
 Objectives of Studying the Organization 11
Overview of the Organization 12-14
 Vision 12
 Mission 12
 values 13
 Goal 14
Bank’s Profile 15-20
Table of contents

 Head office at Glance 15
 Brief History of National Bank of Pakistan 16
 Functions of Bank 18-20
Departmantation of NBP 21-27
Business Volume 28-29
Branch Network 30-31
 Number of branch 30
 Islamic Banking Branches 31
Competitors of NBP 32
Rewards & Achievement 33-34
Products of NBP 35-44
 NBP Premium Amdani
 NBP premium Saver
 NBP Saibaan
 NBP Advance Salary
 NBP Cash Card
 NBP Investor Advantage
 NBP Cash n Gold
 NBP Kisan Taqat
 NBP Kisan Dost
 NBP Pak Remit
 NBP Protection Shield
PESTL Analysis 45-46
 Political Analysis 45
 Economical Analysis 45

 Social & Cultural Analysis 46
 Technological Analysis 46
 Legal Analysis 46
Part: 2 47-56
Organizational Structure & Management 48-52
 Board of Directors 50
 Hierarchy of Management 52
Branch Structure & Management 53-54
 Management Hierarchy 53
 Branch Introduction 54
Span of Control 55-56
Comments on Organizational structure 57
Part: 3 58-78
Branch Introduction 59-62
Work Performed by me 62
 Account Opening 62-67
 Deposit Section 68
 Procedure of Withdrawals 68-69
 Procedure of Cross cheques 69

 Remittances 70-74
SWOT Analysis 75-78
Financial Analysis of NBP 79-92
 Business Volume of NBP 2010 80
Ratio Analysis 81-90
 Conclusion 91
General Observation 91-92
General Suggestions 92-93
Recommendations 94
References 95-97

EXACUTIVE SUMMARY
To interpret my skills and educational knowledge of Finance I done my internship in National
Bank of Pakistan Service Industry Branch, Gujrat and to know how I will work in financial
institutions and among various types of people have different attitude.
 The report is based on my six weeks internship program in National Bank of
Pakistan.
 The methodology reported for collection of data is primary as well as secondary data.
 The biggest source of information is my personal observation while working with
staff and having discussion with them.
The report is consist on two parts first part deals with why I select this bank, the description of
the NBP and discusses the financial position of NBP, its analysis. While Second part depends
on my activities and at the end concluding remarks and suggestions are given for
improvements. It was too much difficult for me to describe the functioning of such a vast
organization within the limits
National Bank of Pakistan is one of the leading banks in Pakistan. According to international
standards of banking system it is one of the best banks in South Asian region as well as the
bank, which is, come the top ten in the world. This report explains how different functions of
NBP works and what are their services.
Introduction denotes that what is the purpose of my internship. After that how banking enter in
the Pakistan. What is its working structure? It is review and organizational structure.

Research Methodology:
The report is based on my two months internship program in National Bank of Pakistan. The
methodology reported for collection of data is primary as well as secondary data. The biggest
source of information is my personal observation while working with staff and having
discussion with them. Formally arranged interviews and discussions also helped me in this
regards.
Primary data:
Primary data include Personal observation and Interviews of The Staff Members.
Secondary data:
Secondary data consist of followings.
Manuals
Journals
magazines
Annual Reports
Internet

Introduction
Overview of the
Organization
Products of
Organization
Part -1:
In This Section three topics are discussed:

Introduction
As part of the academic requirement for completing AD (Accounting & Finance) The students
are required to undergo for six weeks of internship with an organization. The internship is to
serve the purpose of acquainting the students with the practice of knowledge of the discipline of
banking administration.
This report is about National Bank of Pakistan. NBP was established in 1949 and since then, it
has expended its network, becoming the largest commercial Bank of the country. It offers
different products of services to its customers
Background of study:
The internship requirement in the degree of (Accounting & Finance) led me to experience an
exciting and professional exposure to NBP as an internee.
Purpose:
The main purpose of the study in hand is together relevant information to compile internship
report on National Bank of Pakistan.
To observe, analyze and interpret the relevant data competently and in a useful manner.
To work practically in an organization.
To improve report writing skills.
To develop interpersonal communication.
Scope:
As an internee in National Bank of Pakistan the main focus of my study research was on
general banking procedures in one of the branches of NBP. These operations include
remittances, deposits, advances and account opening. Similarly different aspects of overall of
NBP are also covered in this report.

Objective:
The primary purpose of this study is to fulfillment of the requirements for the degree of MBA
(Finance).For this connection each student of this particular course is required to undertake
training in a relevant organization selected by them, for a period of 5-7 weeks.
The secondary purpose of this internship is to understand how the theoretical knowledge can be
applied to the practical situations and examine an organization‟s financial issues and identify its
opportunities/ problems and also suggest corrective measures. This internship is also very
necessary to gain confidence and become aware of the mechanism of an organization. As an
internee I want to achieve following objectives during my internship and organization study:
To familiarize with a business organization.
To familiarize with the different departments in the organization and their functioning.
To enable myself to understand how the key business process are carried out in
organization.
To understand how information is used in an organization for decision making at various
levels.
I want to develop my skills in the application of theory to practical work situations.
To develop my attitude conducive to effective interpersonal relationships.
To acquire good work habits and sense of responsibility.

Overview of the Organization
VISION:
To be the pre-eminent financial institution in Pakistan and Achieve market recognition both in
the quality and delivery of service as well as the range of product offering.
Mission:
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.
Maximizing stakeholders‟ value.
Discharging our responsibility as a good corporate citizen of Pakistan and in countries
where we operate

VALUES:
NBP aim to be an organization that is founded on…
Growth through creation of sustainable relationships with our customers.
Prudence to guide our business conduct.
A national presence with a history of contribution to our communities.
NBP shall work to…
Meet expectations through Market-based solutions and products.
Reward entrepreneurial efforts.
Create value for all stakeholders.
NBP aim to be peopling who…
Care about relationships.
Lead through the strength of our commitment and willingness to excel.
Practice integrity, honesty and hard work. We believe that these are measures of true
success.
NBP have confidence that tomorrow we will be…
Leaders in our industry.
An organization maintaining the trust of stakeholders.
An innovative, creative and dynamic institution responding to the changing needs of the
internal and external environment

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 Achievements

Bank’s Profile:
Bank Name National Bank of Pakistan
URL/Home Page www.nbp.com.pk/
Email enquiries@nationalbank.com.pk
STREET Building, I.I. Chandigarh Road
CITY Karachi
STATE Sindh
COUNTRY Pakistan
PHONE +92 -21- 99220100 (30 lines)
FAX +92-233-9290257
BANK TYPE Government
KSE
LSE
Key People S. Ali Raza (Chairman Board)
Industry Banking, capital Market
Established November 8, 1949
Owner(s) Government of Pakistan
INTERNET BANKING Yes

Introduction of the Organization
I am going to clarify the analysis of the organization that contains brief history of
NBP.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. It has redefined
its role and has moved from a public sector organization into a modern commercial bank. The
Bank's services are available to individuals, corporate entities and government. While 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 player in the debt equity market, corporate investment banking, retail and
consumer banking, agricultural financing, treasury services and is showing growing interest in
promoting and developing the country's small and medium enterprises and at the same time
fulfilling its social responsibilities, as a corporate citizen.
Brief History of National Bank of Pakistan
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, NBP Cash
and Gold.
National Bank of Pakistan (NBP) is one of the largest commercial bank operating in Pakistan.
It has redefined its role and has moved from a public sector organization into a modern

commercial bank. While 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 player in the debt equity market, corporate
investment banking, retail and consumer banking, agricultural financing, treasury services and
is showing growing interest in promoting and developing the country's small and medium
enterprises and at the same time fulfilling its
Social responsibilities, NBP headquarters in Karachi, Pakistan with over 1,200 branches
country wide. The bank provides both commercial and public sector banking services. It has
assets worth USD 12.293 billion in 2007. Its subsidiaries include NBP Capital, NBP Modaraba
Management Company, NBP Exchange Company, Taurus Securities, NBP Almaty and others.
At present day NBP is the main hand of government and state bank of Pakistan. NBP performs
many functions on behalf of government .NBP works in Pakistan as well as in abroad.
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.
Functions of NBP
The National Bank of Pakistan a commercial bank generally makes advances for a period not
exceeding one year, except in case of small and medium industries for which advance may be
made for a maximum period of five years. The bank makes not only against the security of
stocks and goods hypothecated or pledged to the bank, but also against documents of goods
and properly, shares are various joint stock companies, Government securities, Insurance
policies deposits receipts, etc. The margin and rate of interest are determined by several factors
including the type of security the size of loan and the honor of the party.
The Bank is authorized to carry on kinds of banking business and is empowered to make loans.
It has also undertaken special financing operations connected with Government prices support

scheme. The bank also gives advances loans, especially for agricultural products, such as cotton
etc. It also safeguards the valuable articles of people. It also arranges training programs for
Bank officials. It participates in procurement of seasonal crops e.g. wheat, rice, cotton, sugar
cane, etc. It also provides credit facilities to small industrial units‟ agriculture sectors as per
credit mandatory targets fixed by the State bank of Pakistan.
Sometimes NBP is performing as State Bank of Pakistan in the Dist. Where State Bank of
Pakistan is not situated. It acts as treasury office & serve as Govt. collateral & Govt.
disbursements.
It deals as right hand in all kind of Govt. Financial activities; no any other can perform these
activities. Services are outputs of the firm/organization, which are in intangible form & which
are the backbones of any organization to earn profit? NBP offers the following services to the
people as a representative of “STATE BANK OF PAKISTAN”.
Collection of cheques and bill of exchange for its customers.
Paying insurance premium, rent or other obligations of the customers.
Collecting interests due, dividend, pensions and other sums due to customers.
Transferring of money from place to place.
Acting executors, trustees for the customers.
Providing safe custody and jewelry, documents or securities.
Issuing of travelers cheques and letter of credit to give credit facilities for travel.
Purchasing shares for the customers.
Accepting bills of exchange on behalf of customers.
Undertaking foreign exchange business.
Furnishing trade information and tendering advice to customers.
Formulating operation policy guidelines for the banks.
Laying down performance criteria for banks and taking steps for ensuring their
observance.
Evaluating the performance of the banks in the context of operational guidelines issued
to the banks.
Determining the areas of coordination of the banks.

Formulating schemes under section of the act.
Making recommendations to the federal government for the appointment of the president
and members of the executive board.
Analyzing and appraising financial statement including balance sheets and profit and
loss accounts of banks and appointment of auditors of the bank.
Conducting such surveys, inquiries and appraisals as may be necessary for the purpose
of this act.
Exercising and performing such powers and functions of the federal government under
the act and such other functions as the federal government may assign to it.
Establishing a research department or conduct banking research and in particular study
overseas banking operation and problems of the agricultural financing.
Establishing a central training institution for improving bank services.
Coordinating the planning of the operations of nationalized commercial banks, and
exercising general overall checks on the cost of their operations.
Appointing lead banks and to apportion share of advance among the banks in respect of
consortium loans financed by the nationalized commercial banks only, in accordance
with resource availability of each bank.
Watching the progress of the implementation of the rulings made in State Bank Annual
Inspection Reports and the remedial and corrective measures taken by the banks with a
view of removing imbalances.

DEPARTMENTATION OF NBP
The Departments functioning at NBP as briefed by its concerned officers during the internship
are:
 Cash Department
 Deposit Section
 Clearance Department
 Remittance Department
 Advances Department
 Types of Accounts
 Advances (Credit department)
 Government Payments
 Government Receipts
CASH DEPARTMENT:
Cash department performs the following functions
Receipt
The money, which either comes or goes out from the bank, its record should be kept. Cash
department performs this function. The deposits of all customers of the bank are controlled by
means of ledger accounts. Every customer has its own ledger account and has separate ledger
cards.
Payments
It is a banker‟s primary contract to repay money received for this customer‟s account usually by
honoring his cheques.
Cheques and their Payment
The Negotiable Instruments. Act, 1881
“Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand”.

Since a Cheque has been declared to be a bill of exchange, it must have all its characteristics as
mentioned in Section 5 of the Negotiable Instruments Act, 1881. Therefore, one can say that a
Cheque can be defined as an:
“An unconditional order in writing drawn on a specified banker, signed by the drawer,
requiring the banker to pay on demand a sum certain in money to, or to the order of, a specified
person or to the bearer, and which does not order any act to be done in addition to the payment
of money”.
DEPOSIT DEPARTMENT:
Deposits are referred to as the „LIFE_BLOOD‟ of the bank. The fundamental function of a
commercial bank is the acceptance of deposits. Banks accepts deposits from those who have
surplus money in their hands but they are unable to make use of it. When a bank receives a
deposit from customer, the relationship of debtor and creditor established whereby a customer
becomes the creditor and the bank becomes debtor. The amount owned by the bank must be
payable to the depositor on demand or after some time. Deposit Section in a bank deals with the
acceptance of deposits and payment of cheques. LEDGERS OF DEPOSIT DEPARTMENT
The following types of ledgers are concerned with deposit department:
1) Saving Ledgers
2) Current Ledgers
3) Profit and Loss Sharing Ledgers
4) Fixed Deposit Register
5) Cash Book
6) Daily Profit and Loss Summary Book
7) Voucher Register
CLEARANCE DEPARTMENT:
A clearinghouse is an association of commercial banks set up in given locality for the purpose
of interchange and settlement of credit claims. The function of clearinghouse is performed by
the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated
by the SBP. If SBP has no office at a place, then NBP, as a representative of SBP act as a
clearinghouse.

In-Word Clearing Books
The bank uses this book for the purpose of recording all the cheques that are being received by
the bank in the first clearing. All details of the cheques are recorded in this book.
Out-Word Clearing Book:
The bank uses outward clearing register for the purpose of recording all the details of the
cheques that the bank has delivered to other banks.
ADVANCES DEPARTMENT
Advances department is one of the most sensitive and important departments of the bank. The
major portion of the profit is earned through this department. The job of this department is to
make proposals about the loans. The Credit Management Division of Head Office directly
controls all the advances. As we known bank is a profit seeking institution. It attracts surplus
balances from the customers at low rate of interest and makes advances at a higher rate of
interest to the individuals and business firms. Credit extensions are the most important activity
of all financial institutions, because it is the main source of earning. However, at the same time,
it is a very risky task and the risk cannot be completely eliminated but could be minimized
largely with certain techniques. Any individual or company, who wants loan from NBP, first of
all has to undergo the filling of a prescribed form, which provides the following information to
the banker.
Name and address of the borrower
Existing financial position of a borrower at a particular branch.
Accounts details of other banks (if any).
Security against loan.
Exiting financial position of the company. And Signing a promissory note is also a requirement
of lending, through this note borrower promise that he will be responsible to pay the certain
amount of money with interest.
Principles of Advances
There are five principles, which must be duly observed while advancing money to the
borrowers.
Safety
Liquidity
Dispersal
Remuneration
Suitability

Forms of Loans
In addition to purchase and discounting of bills, bankers in Pakistan generally lend in the form of
cash finance, overdrafts and loans. NBP provides advances to different people in different ways as
the case demand.
a) Cash Finance
This is a very common form of borrowing by commercial and industrial concerns and is made
available either against pledge or hypothecation of goods, produce or merchandise. In cash finance
a borrower is allowed to borrow money from the banker up to a certain limit, either at once or as
and when required. The borrower prefers this form of lending due to the facility of paying
markup/services charges only on the amount he actually utilizes. If the borrower does not utilize
the full limit, the banker has to lose return on the un-utilized amount. In order to offset this loss,
the banker may provide for a suitable clause in the cash finance agreement, according to which the
borrower has to pay markup/service charges on at least on self or one quarter of the amount of cash
finance limit allowed to him even when he does not utilize that amount.
b) Overdraft/Running Finance
This is the most common form of bank lending. When a borrower requires temporary
accommodation his banker allows withdrawals on his account in excess of the balance, which the
borrowing customer has in credit, and an overdraft thus occurs. This accommodation is generally
allowed against collateral securities. When it is against collateral securities it is called “Secured
Overdraft” and when the borrowing customer cannot offer any collateral security except his
personal security, the accommodation is called a “Clean Overdraft”. The borrowing customer is in
an advantageous position in an overdraft, because he has to pay service charges only on the
balance outstanding against him. The main difference between a cash finance and overdraft lies in
the fact that cash finance is a bank finance used for long term by commercial and industrial
concern on regular basis, while an overdraft is a temporary accommodation occasionally resorted
to.
c) Demand Financing/Loans
When a customer borrows from a banker a fixed amount repayable either in periodic installments
or in lump sum at a fixed future time, it is called a “loan”. When bankers allow loans to their
customers against collateral securities they are called “secured loans” and when no collateral
security is taken they are called “clean loans”.
The amount of loan is placed at the borrower‟s disposal in lump sum for the period agreed upon,
and the borrowing customer has to pay interest on the entire amount. Thus the borrower gets a
fixed amount of money for his use, while the banker feels satisfied in lending money in fixed
amounts for definite short periods against a satisfactory security.

REMITTANCE DEPARTMENT
Remittance means a sum of money sent in payment for something. This department deals with
either the transfer of money from one bank to other bank or from one branch to another branch
for their customers. NBP offers the following forms of remittances.
 Demand Draft
 Pay Order
 Mail Transfer
Demand Draft
Demand draft is a popular mode of transfer. The customer fills the application form.
Application form includes the beneficiary name, account number and a sender‟s name. The
customer deposits the amount of DD in the branch. After the payment the DD is prepared and
given to the customer. NBP officials note the transaction in issuance register on the page of that
branch of NBP on which DD is drawn and will prepare the advice to send to that branch. The
account of the customer is credited when the DD advice from originating branch comes to the
responding branch and the account is debited when DD comes for clearance. DD are of two
types.
Open DD: Where direct payment is made.
Cross DD: Where payment is made though account.
NBP CHARGES FOR DD
o Up to Rs. 50,000/- is Rs 50/- only
o Over Rs. 50,000/- is 0.1%
Mail Transfer
When the money is not required immediately, the remittances can also be made by mail transfer
(MT). Here the selling office of the bank sends instructions in writing by mail to the paying
bank for the payment of a specified amount of money. Debiting to the buyer‟s account at the
selling office and crediting to the recipient‟s account at the paying bank make the payment
under this transfer. NBP taxes mail charges from the applicant where no excise duty is charged.
Postage charges on mail transfer are actual minimum Rs. 40/- if sent by registered post locally
Rs.40/- if sent by registered post inland on party‟s request.
TYPES OF ACCOUNTS
The bank accepts the following types of deposits.
1. Current deposits

2. PLS Saving deposits
3. Fixed deposits account (Time Deposit)
4. Foreign Currency Account
1. CURRENT DEPOSIT
For current deposits NBP open the account in the name of individual proprietary firms,
partnership firm, private limited companies clubs, association societies and other institutions.
The account can be operated by single or two more persons jointly as the instructions may be
given at the time of opening the account. If the person who wants to open the account is not in
position to sign or signature is not firm or shaky the bank requires is photographs and he has to
come in the bank at the time of withdrawals of his deposits. The initial amount of deposits with
which he can open the account usual not be less then Rs.1000/- But this restriction is not
imposed to the accounts of charitable institutions.
2. PLS SAVING ACCOUNTS
The salient features or profit and loss sharing saving accounts to be opened in NBP as under.
These accounts can be opened by individuals in their own single are joint name.
The PLS saving accounts can also be opened for provident fund or other benevolent
funds of companies, firms, organizations of welfare and educational institutions.
PLS saving account can be opened with an minimum amount of Rs. 500/- only.
Money can be withdrawn from PLS saving account only through cheque.
To share in the profit a minimum balance of Rs.500/- must be maintained a account. The
minimum balanced on sixth and last of month will qualify for the profits.
The profit will be calculated on the basis of monthly minimum balance for the period of
six months i.e. from January to June and July to December
The head office of NBP determines the profits or loss on PLS saving deposits and advice
its branches the rate and time of distribution of these profits concerned PLS saving
account.
They shall be no restrictions on maintaining the maximum balance in PLS saving
account.
On the fist of Ramzan every year the Zakat 2.5% will be recovered from the deposits on
the balance of that day. But if depositors give declaration of Zakat or he is non-Muslim
no Zakat will be recovered from him in the same day Zakat is not recovered from

account in which the balance are below up to prescribed limit as declared by the
administrator of Zakat Pakistan Act system of accepting deposits has been stated in NBP
since 01-01-1981.
3. FOREIGN CURRENCY ACCOUNT
NBP has also introduced foreign currency accounts for Pakistan and foreign Nation in
Pakistan and abroad. This scheme assures its customers on better profit and superior service.
It offers Pakistani or foreign National to operate a foreign currency A/C with any one
of their authorized branches spread all over the country.
Deposits of this accounts will be acceptable in all convertible currency but account
will be maintained on the customer‟s choice in US Dollar, pounds German Mark or
Japanese Yen.
Deposits may be made in the forms of remittances in foreign currencies.
Advances (Credit department)
NBP give loans to the borrowers for different purposes. These loans are given for various sectors
for different periods. Small Finance, Cash Finance, Agriculture Finance, Cash & Gold Loan,
Personal Loans, Demand Finance, Running Finance, Corporate Finance, Export Import Financing,
House Building Finance (Saiban) and NBP Karoobar Scheme etc.
Government Payments
National Bank of Pakistan is functioning as an agent of SBP. All types of Government Payment i.e.
Pension, Salaries, Grants, Zakat, Benevolent Fund, Treasury Refund and Taxes Refund proceed
through the bank.
Government Receipts
In this department all types of Government receipts i.e. Revenues, Taxes, Abyana, Agriculture
Tax, Government Fees, EOBI Funds and Utility Bills are deposited. This way NBP is serving great
job of revenue collection.

NBP policies & strategies
Introduction
This chapter include the polices and strategies of NBP, that how they work and what are the
basic rules for the accounting record assigned by SBP. The last part of the chapter consisted on
success of NBP through its policies and strategies.
Policies
Policy is a projected program consisting of desired objectives and the means to achieve them.
Following are some policies implemented by NBP.
Provide job satisfaction to their employees.
Allow the employees to participate in the decisions that affect them.
Good performance reward is also in the form of hajj and umrah package.
Use goals and feedback.
Developing a benefit package.
HR policies are in the form of circulars and instruction forms.
Organizing 6 weeks internship for the students.
NBP has no gender bias.
Strategies
Five year plan approved by BOD is hollow and does not address any serious thinking on:
1. Development required for serving major sectors of the economy
2. Productivity improvement and benchmarking with the competition
3. Bringing the institution on international banking landscape in the coming five years, not
to speak of the seven years which the current management has already served.
4. Inducting and leveraging specialized human capital
5. Infrastructure to support planned growth and vision
1. Even this plan is not cascaded down the line to align the annual performance, targets and
resultantly actions and tasks with the grand plan. Now in its second year, this plan.

Business Volume
The National Bank of Pakistan is the foremost bank determined to set higher standards of
achievements. It is the key business partner for the Govt. of Pakistan with special emphasis on
nurturing Pakistan’s economic growth through aggressive & impartial lending policies. As we
look to the business side volume of NBP.NBP has strong position of assets and deposits.
The assets and deposits of NBP increasing day by day. It shows the trust of people on NBP.
With the help of this it can expand their business. Loan and equity of NBP increases from
previous years. It means more equity means more share and it means more capital.
Particulars 2009 2010 2011
Total Assets 946,253,269 1,038,018,467 1153480100
Total Deposits 727,513,013 832,134,054 927415127
Total Equity 10,763,702 13,454,629 16818286
Total Loans 727,513,013 832,134,054 927415132
Total Investments 217,596,037 301,078,498 319527524
Net Profit 21119 24662 26116
Earnings per
share
12.97 13.24 10.53
Years from 2009 to 2011

Branch Network of National Bank of Pakistan
Branch Network of National Bank of Pakistan With the geographical development of its
branches, the National Bank of Pakistan has been able to extend its services to a much larger
number of Pakistanis all over the country. Today the Bank has more than 8.8 million accounts
& Bank maintains its presence in all the major financial centers of the world through its 23
(2011) overseas branches and 5 representative offices. Of these, three representative offices
have recently been set up at Tashkent (Uzbekistan), Baku (Azerbaijan) and Almaty
(Kazakhstan) to take advantage of the emerging opportunities in CIS countries. Banks role
Apart from having a vast branch network, Bank is at the forefront in the acquisition and
application of new technologies in every aspect of its banking facilities. It has acquired leased
telephone lines for on-line banking.
The Bank has 12 Regional Computer Centers to cover various on-line and batch system
requirements of branches and controlling offices. Presently the National Bank of Pakistan is
divided into various Groups headed by SEVPs/EVPs. Its field operations are controlled by 23
regions reporting to as many Regional chiefs, who control 40 zones and 15 single Branch zones
headed by Zonal Chiefs; 12 corporate branches and 1283 domestic branches headed by Branch
Managers. The bank has 13 SWIFT local centers.
Apart from having a vast branch network, Bank is at the forefront in the acquisition and
application of new technologies in every aspect of its banking facilities. It has acquired leased
telephone lines for on-line banking. Bank has also a presence on the internet.
The of Pakistan has 1274 online branches throughout the country. It has modernized its services
by installing Automated Teller Machines (ATMs) called “CASH LINK” at selected branches.
The Banks organizational structure reflects the three levels at which it operates: international,
national and local. The Head Office formulates and implements the strategic, management and
operational policies. The Banks geographical organization consists of branches located in the
regional capitals and in some provincial capitals. The branches activities relate to the State
treasury service, payment system

services, currency circulation, banking and financial supervision, and the analysis of economic
and financial developments at the local level.
The Bank has representative offices abroad, in London, New York and Tokyo; a number of
officers are seconded as financial experts to Italian embassies and consulates.
Number of branches of NBP 2007 to 2010
Description 2007 2008 2009 2010
Number of Branches 1,261 1,276 1,287 1289
1,283 Branches
29 Regional Offices
1274 Online branches
149……………. ATM
8 Islamic baking
23 Overseas Branches
5 Subsidiaries
4 Joint ventures
10 Representative Offices

Competitors of NBP
The competitors of the National Bank of Pakistan are as follows:
Askari Bank National Savings
Habib Bank Limited Allied Bank Limited
United Bank Limited Faysal Bank
First Woman Bank Standard Charter
Muslim Commercial Bank Bank Al-Falah
Bank of Punjab Silk Bank
Dubai Islamic Bank Sonehri Bank

NBP Awards and Achievements
 NBP Awards and Achievements2011 &2012 Listed in top 1000 banks of the world
for the year 2012" by the world renowned “The Banker” magazine owned by the
Financial Times Group, London.
 Pakistan: Transaction of the Year Award - 2011”, awarded by Islamic Finance News,
for two wind farm projects of 50MW each in which the bank acted as international inter-
creditor agent (for the Islamic Development Bank, the Asian Development Bank and
syndicates of local banks).
 Transaction of the Year Award – 2011; awarded by CFA Association of Pakistan for
the private placement and offer-for-sale of Engro Foods Limited.
 Bank of the Year" awarded for the year 2011 by the world renowned "The Banker"
magazine owned by the Financial Times Group, London
 Top Corporate Finance House (Fixed Income) Award of the Year 2011", awarded by
the "CFA Association of Pakistan". National Bank of Pakistan Awarded “Best
Emerging Markets Bank 2011” Awarded By Global Finance Magazine.
 Bank of the Year” awarded for the year 2010 by the world renowned “The Banker”
magazine owned by the Financial Times Group, London
 Runner up of Corporate Finance House (Fixed Income) Award of the Year 2010",
awarded by the "CFA Association Pakistan".
 NBP is awarded “President of Pakistan Trophy”, a top slot award by Federation of
Pakistan Chambers of Commerce and Industry in 2010.

 NBP is awarded “Prime Minister of Pakistan Trophy”, a top slot award by 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.
 “Best Foreign Exchange Bank – Pakistan” award for the year 2005 by world‟s leading
financial journal “Global Finance”.
 “Best Bank - Pakistan” award for the year 2005 by world‟s leading financial journal
“Global Finance”.
 The Asian Banker, a reputable financial journal, has published the report of its research
project on the ranking of 300 of Asia’s Strongest Banks based on a 11-Dimensional Dynamic
Scoring Criteria has adjudged National Bank of Pakistan as the Strongest Bank in Pakistan.
 On the basis of overall financial performance during 2004, NBP has been listed
“Amongst top 1000 banks in the world” and “Number 1 Bank in Pakistan” by the
prestigious “Banker Magazine” in its issue of July 2005.

Products of National Bank OF Pakistan
A product is anything that can be offered to a market to satisfy a want or need and a service is
an act or performance that is essentially intangible and does not result in the ownership of
anything. What products or services have to be offered to the target market depends on the
market requirement and also the organization’s profits. The organization will offer those
products and services, which result in maximum profits and minimum costs. A bank is an
organization rather a financial institution that provides products such as different types of
deposits and services like foddering financing facilities to its customers National Bank of
Pakistan always makes efforts to improve its goodwill in the general public. It introduces
different kind of schemes time to time.
The most popular schemes conducted by NBP are as under:
1. NBP Premium Amdani
2. NBP premium Saver
3. NBP Saibaan
4. NBP Advance Salary
5. NBP Cash Card
6. NBP Investor Advantage
7. NBP Cash n Gold
8. NBP Kisan Taqat
9. NBP Kisan Dost
10.NBP Pak Remit
11.NBP Protection Shield
12.Premium Aamdani
NBP Premium Aamdani

Feather:
Earn up to 12.25% p.a.
Minimum deposit of Rs. 20,000/- with maximum balance of Rs. 10 million for 5
years
Free Demand Draft, Pay Order and Cheque Book*
Convenience of NBP online Aasan Banking (for online banking customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%
Profit paid every month as follows:
Profit rates are expected
Year** Profit Rates (%) ***
1st
11.25
2nd
11.50
3rd
11.75
4th
12.00
5th
12.25
NBP Premium Saver
Feather
1. Earn up to 8.50% p.a.
2. Minimum saving balance of Rs. 20,001/- & a maximum balance of Rs. 1million*.
3. Free NBP Cash Card (ATM + Debit).

4. Convenience of NBP Online Aasan Banking (for online banking customers).
5. Two debit withdrawals allowed in a month & no limit on number of deposit
transactions.
6. Profit calculated on monthly and paid on half yearly basis.
NBP Saibaan
1. Home Purchase
2. Home Construction
3. Home Renovation
4. Purchase of Land + Construction Home
Purchase& Home Construction
Financing Amount Up to 35 million
Financing Period 3 to 20 years
Debt to Equity 85: 15 (Maximum)
Home Renovation& Purchase of Land
Financing Amount Up to 15 Million 40
Financing Period 3 to 15 Years
Debt to Equity 80:20 (Maximum)

Eligibility
1. Must be Pakistani Resident(National)
2. Aged between 21 and 65 years at the time of-application/disbursement of loan.
3. Salaried -Person, Self-employed professionals and businessmen.
4. Minimum income requirement Rs. 5000 for Govt Employees, Rs. 10,000 for other
salaried persons and Rs. 15,000 for self employed and businessmen.
5. Property located in NBP approved localities. Service duration: Two years for salaried
class Three years for self- employed/business class.
Required document with Applications Form
Two attested passport size photographs
Two attested copies National Identity Card
Cheque for the processing charges
NBP Advance Salary
National Bank of Pakistan has launched a unique product, NBP Advance Salary currently
this product is for fixed income permanent employees. Federal & Provincial Government,
Semi-Government, Autonomous, Semi- autonomous, local bodies and other Government
organizations NBP Advance Salary, the leading personal loan product of the country, is
maintaining its inimitability ever since it was launched. This was only possible due to its
swift growth and remarkable loan disbursement of over 138 billion. You can avail up to 20
net take home salaries with easy repayment installments. Its hassle free acquisition with no
prior formalities and easy availability in a short turn- around time is attributed as the most
distinguishing features of the product.

The product is offered country wide
Easy installments of 1 to 60 months at your choice.
No minimum income, collateral & insurance charges required
Quick processing and fastest disbursement.
For permanent employees of Government, Semi Government and Autonomous
bodies receiving salaries through NBP.
Terms and Conditions
Eligibility Permanent Employees of Govt. Semi-Govt.,
Autonomous, Local & other bodies who are
maintaining their Salary A/Cs at NBP
Repayment Direct deduction from Salary A/C
Maximum
Loan Amount
Rs. 490,000/-
Max.
Repayment
Period
5 years (60 months)
Advance in
terms of # of
net take home
salaries
Up to 20 net take home salaries
Markup Rate SBP Discount Rate + 5%
Processing Fee 1% of Loan Amount
Verification
Charges
Rs 500/-
Life Insurance No Insurance of any kind
Documentation
Charges
at actual
Contact Your Salary disbursing NBP Branch
remaining
service age
. At the time of approval and disbursement the
Remaining Service applicant‟s,, age should be 6 Age
months after maturity of the loan

NBP Cash Card
ATM + Debit Card
Use it as an ATM in any of the ATM’s in Pakistan.
Use it as Debit Card in any of the outlets with ORIX POS machine across nationwide.
Cash withdrawal up to Rs. 20,000/- per day.
Account Balance Enquiry.
Mini Statement (Only at NBP ATM).
PIN Change facility (Only at NBP ATM)
NBP Investor Advantage
A margin financing facility developed for retail investors in line with Government’s efforts to
promote Pakistani capital markets and will replace the Badla (COT) system with a stable
financing system in line with international financial markets. Besides offering a comfortable
environment to the retail stock investors, a financing facility will also be available. Willing
investors can avail NBP financing at very easy terms requiring minimum documentation and

least turn around time. The NBP financing also does not require any security from the customer
except for the customer’s equity.
Requirements of document
Photograph of Applicant
NBP Account - Current or PLS
Copy of CNIC
Copy of CNIC of Two (2) References
Borrower Basic Fact Sheet
NBP Kisan Taqat
National Bank Pakistan Dairy Form Scheme
Advantage to Getting Loan from NBP
Very Near Banks Branch from you
Easy and Short Paper
working Get ride from the tension payment of Installments
Experience Staff‟s Help and Guide
NBP KISAN DOST
Agriculture Farming Program
Competitive mark-up rate.
Quick & easy processing.
Provision of technical guidance to farmers at their doorstep.
Wide range of financing schemes for farmers.

Finance facility up to Rs. 100,000/- for landless farmers on personal guarantee.
Financing available against Pass Book, Residential / Commercial property, Gold
ornaments and paper security.
NBP Pakremit
Pakremit is an internet based Home Remittance Service. This service is available to U.S.
residents for sending money to their family and friends in Pakistan. One must have a valid US
Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit funds
through this channel. Remitters in USA can log on to our user friendly website,
www.pakremit.com and easily remit funds to Pakistan from the comfort of their homes, in a
matter of minutes. The service is fully secure with advance encryption application and is
available for use 24 hours a day, 7 days a Week. Fees and exchange rate have been set at
competitive levels and the remitters have the ability to track delivery of funds as well.
Process
Remitters log on to www.pakremit.com and after completing the registration
process, are able to remit funds. The whole process takes a few minutes.
Funds in Pak Rupees can be sent to beneficiaries, having an account with any bank
in Pakistan, including NBP. While funds are credited directly to beneficiaries
maintaining accounts with NBP, a pay order or demand draft is couriered to other
banks for their customers. Pay order or demand draft can also be couriered directly to
the beneficiary’s office or home, if requested by the remitter.
Funds in US Dollars can be sent only to a Beneficiary maintaining a US Dollar
account with one of NBP‟s Foreign Exchange Branches.

NBP Protection Shield
Life is precious
Insurance Coverage In case of Accidental Death (Including death due to *Riots, Strikes, Civil
commotion, Acts of Terrorism and Natural Calamities like Flood, Earth Quake, Cyclones etc.)
Coverage of Rs. 200,000/- for Rs. 20/- per month
Definitions
Provided the insured is not directly involved in these activities.
Accident
Unintentional, unfortunate or a harmful event by chance or apparent cause.
Accidental Death
Death due to accidental injuries, but not illness.
Insured Person
A National Bank of Pakistan PLS account holder, aged between 18 years and above, and
whose premium is deducted & details are reported to the selected insurance company by NBP.
Policy
Group Personal Accident Policy dated 26/09/05 executed between NBP and Insurer.

Principal Sum
The amount stated in the Policy’s Schedule of Benefits as respects each Insured Person.
Product Detail
No medical Required
No Documentation
Fixed Auto Premium deduction Facility (After customer consent)
Choice of Deactivation
Eligibility
NBP PLS Account holder.

PESTL ANALYSIS
It is very important that an organization considers its environment before beginning the
marketing process. In fact, environmental analysis should be continuous and feed all aspects of
planning. The organization's marketing environment is made up of:
1. The internal environment e.g. staff (or internal customers), office technology, wages and
finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our
competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Socio cultural
forces, Technological forces and Legal analysis. These are known as PESTL factors.
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 & 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
Legal Analysis
Rate of interest (cost of borrowing money).
Leak out the personal information of any customer.
Fixed amount of their reserve.

Organizational
Structure &
Management
Branch Structure
Part -2:
In This Section two topics are discussed:

Organizational Structure and Management
A well-developed and properly coordinate structure is an important requirement for the success
of any organization. It provides the basic framework within which functions and procedures are
performed. Any organization needs a structure, which provides a framework for successful
operations.
The operation of an organization involves a number of activities, which are related to decision
making, and communication of these decisions. These activities must be well coordinated so
that the goals of the organization are achieved successfully The Organization Structure shows
the internal operations and reporting lines of the National Bank of Pakistan. The bank has
clearly defined organizational structure, which supports clear lines of communications and
reporting relationships. There exists a properly defined financial and administrative power of
various committees and key management personnel, which supports delegations of authority
and accountability.
The internal operations of the Bank are organized into 15 main departments and divisions
headed by senior management of the bank and are report directly to the Board of Directors. The
organizational structure of National Bank of Pakistan is centralized because all the decisions of
the bank are taken by the top Management. The National Bank of Pakistan’s Departmental
key roles and functions are as follows: The ownership, management, and control of all the
commercial banks were taken over by the Government of Pakistan on January 1st, 1974. A
banking council was formed under the Nationalization Act 1974. The banking council was set
up for making policy. Recommendations to the Federal Government, formulating policy
guidelines for the banks and their reorganization. The management and organizational structure
of the nationalized banks have uniformity.
This management and organizational structure is briefly described as under:
SSTTRRUUCCTTUURREE && MMAANNAAGGEEMMEENNTT OOFF BBAANNKK
““BBooaarrdd ooff DDiirreeccttoorrss””
In the management of the bank the board of directors is at the top of the controlling bodies. The
board consists of a nominated president, a secretary and 6 other members.
After nationalization in 1974 most of the powers have been transferred to the executive board.

“EExxeeccuuttiivvee BBooaarrdd””
It is also called the management committee. The general direction and supervision of the affairs
of the bank lies in their respective executive boards. The president, secretary and 6 other
members of the board are appointed by the federal govt.
The president being the chief executive controls the affairs of the bank.
“CChhiieeff EExxeeccuuttiivvee””
The president is the administrative head of the bank. He manages and controls the affairs of the
bank. The president holds the office at the pleasure of the federal government.
““RReeggiioonnaall cchhiieeffss””
In order to improve the performance of the banking system, the bank has appointed regional
chiefs also. The regional chief has the powers of sanctioning finance and other credit facilities.
There are 7 regional head quarters of the regional chiefs of the N.B.P., 1 is in the N.W.F.P., 1 is
in Baluchistan, 3 are in Punjab, and 2 are situated in Sindh.
““ZZoonnaall CChhiieeffss””
Each region is divided into number of zones. They hold the post of VP or AVP and administer
these zones.
N.B.P. has 37 zonal offices in Pakistan.
““BBrraanncchh mmaannaaggeerrss””
Each zone is then sub divided into a no. of branches. The control and supervision of each
branch is mostly entrusted to AVP or officer of grade II.
Branch Manager
2 Second Officers
2 Assistants
2 Cashiers
2 Messengers
3 Armed Guards

Qamar Hussain President
Nazrat Bashir Director
Tariq Kirmani Director
Haniya Shahid Naseem Director
1.Qamar Hussain
Chairman Board, President, NBP
Mr. Qamar Hussain is the President of National Bank of Pakistan (NBP), the largest
Commercial Bank of the country. He holds an MBA degree in International Business &
Finance from McGill University, Montreal, Canada and has undergone extensive training in
business leadership abroad. Mr. Hussain started his banking career from Bank of America N.T.
& S.A., Pakistan in the year 1981. Prior to joining NBP in 2009, he has worked with American
Express Bank Limited as Senior Director Global Credit, New York and earlier as Senior
Director Country Manager, Bangladesh. He had also been associated with the CHASE
MANHATTAN BANK in Pakistan and USA.
2. Mr. Tariq Kirmani
Director
Soon after completing his Masters in Business Administration (MBA) Mr. Kirmani embarked
upon a rewarding career, starting with a multi-national Oil Company (Caltex later Chevron
Pakistan) in 1969 and worked for seven years in the United States of America, United Arab
Emirates and Australia in different senior management positions in Marketing, Operations and
Finance. In 1991, Mr. Kirmani became the first Pakistani to be elected as a Company Director
of the mentioned multi-national company.
3. Mrs. Haniya Shahid Naseem
Director

Mrs. Haniya Shahid Naseem has done her Masters in Business Administration with honors in
1995. She is a certified director from the Pakistan Institute of Corporate Governance and has
also done various short courses in management and banking. Mrs. Haniya Shahid has more
than 15 years of diversified experience in the education, agriculture and corporate sectors.
Syed Ali Raza
Chairman Board, National Bank of Pakistan
Qamar Hussain
President, NBP
Mr. Tariq Kirmani Mrs. Haniya Shahid Naseem Ms. Nazrat Bashir

Organizational Hierarchy chart:
President
Director/SEVPS
Provisional Chief
Regional Chief
Assistant Voice President
Zonal Chief
Voice President
Officer Grade 1’2’3
Clerical /Non Clerical Staff

STRUCTURE & MANAGEMENT OF BRANCH
.Any organization needs a structure, which provides a framework for successful operations. The
operation of an organization involves a number of activities, which are related to decision
making, and communication of these decisions. These activities must be well coordinated so
that the goals of the organization are achieved successfully Chart of Hierarchy of Branch
Employees.
Accountant
Deputy Manager
Operational Manager
Manager
Credit Officer
Cashier
Messenger
Guard

Authority and Decision Making of Branch
Centralize Decision Making
The Branch Manager of National Bank of Pakistan is responsible for all the affairs of the
Bank. All the decisions relating to Branch are made by him and the subordinates have to obey
these decisions. All the employees of the Bank are report directly to the Branch Manager. The
branch has one operation Managers. Operation Manager I controls Deposits, Advance &
Branch accounts department.
Authority
The chain of command illustrates the authority structure of National Bank of Pakistan Branch
Service Industry Authority is the formal and legitimate right of the manger to make decisions,
issues orders and allocates resources to achieve organizational desired outcomes. By analyzing
the chain of command of NBP, one can come to the conclusion that, as there is scalar pattern
followed at the organizational setup of NBP.
Delegation
Delegation is the process, which managers use to transfer the authority and responsibility to
position below in the hierarchy At National Bank of Pakistan Service Industry branch
Operation Managers have some authority & responsibility relating to affairs of the Branch.

Span of Control
Span of control is the number of subordinates who report directly to a specific
manager.
There are three types of branch categories i.e. I, II, & III in National Bank of Pakistan.
Category I Branches: Four employees report to their branch manager.
Category II Branches: Eleven employees report to their branch manager.
Category III Branches: Fifteen employees report to their branch manager.
At branches level there is broader span of control but due to tall structure of the
Organization we find narrow span of control in the banks.
Number of Employees
An employee may be defined as: "A person in the service of another under any contract of hire,
express or implied, oral or written, where the employer has the power or right to control and
direct the employee in the material details of how the work is to be performed." i
An employee
contributes labor and expertise to an endeavor. Employees perform the discrete activity of
economic production. Of the three factors of production, employees usually provide the labour.
Specifically, an employee is any person hired by an employer to do a specific "job". In most
modern economies, the term employee refers to a specific defined relationship between an
individual and a corporation, which differs from those of customer, or client. The relationship
between National Bank of Pakistan and its employees is usually handled through the Human
Resource Management & Administration Group & Employees benefit disbursement & trustee
division. These groups handle the incorporation of new hires, and the disbursement of any
benefits which the employee may be entitled, or any grievances that employee may have.There
are differing classifications of workers within National Bank of Pakistan, these are:
Permanent
Temporary / On Contractual
Outsourced

The Employees of National Bank of Pakistan are organizing into trade unions, which represent
most of the available work force in National Bank of Pakistan. These trade Unions utilize their
representative power to collectively bargain with the management of bank in order to advance
concerns and demands of their membership.
Description 2006 2007 2008 2009 2010
Number of Employees 14,019 14,079 15,441 16,248 16457
Permanent 13237
Temporary/ On Contractual basis 842
Bank's own staff strength at the end of the year 14079
Outsourced 2378
Total Staff Strength 16457

CCoommmmeennttss oonn
OOrrggaanniizzaattiioonnaall ssttrruuccttuurree
The National Bank has great contribution towards building wide Banking structure in Pakistan
and serving all aspects of the National life and all classes of society. NBP is fully aware of the
developments taking place in the world as well as the changes occur in the economic and social
condition with in the country. The bank is determined to meet new challenges by redefining its
goals and strategy.
Everyone knows whom to report in case of emergency and what to do in time of crisis.
The officers are well coordinated and assist each other in their work. There exists a friendly
work environment. Everyone is given promotion opportunity. Overall,
the environment of NB bank is very well established and admirable. The way the
organizations structured is brilliant.

 Briefly description of my Work as an
Internee.
 Conclusion of the Report
 References
Part -3:
In This Section we are discussed:

My internship program
Branch Details
Branch Name Service industry Branch Gujrat
Branch Code 0647
Address GRT:SIB:12
Phone 0539260161
Fax 99260159
Tehsil Gujrat
District Gujrat
Province Punjab
Swift Code --------
Status Offline
Email manager0788@nationalbank.com.pk ,
opsmanager0788@nationalbank.com.pk
AA bbrriieeff iinnttrroodduuccttiioonn ooff tthhee bbrraanncchh wwhheerree II ddiidd mmyy iinntteerrnnsshhiipp::
Branch of NBP where I did my internship is the Branch of Gujrat and it is located at Railway
Road Gujrat. This branch is established at 30 June, 1974. By size, it‟s a small level branch
having more than 8 employees working in it. There are 5 office boys working in the bank. All
offices are well furnished and managed accurately that there is no confusion or mistake occurs
in finding any office. By look its building look is very attractive.
The working and learning environment of the bank is very valuable and high quality.
Employees are ready to coordinate with you in all of your queries. I worked there for six weeks
are learned a lot in this very short span of time. The whole staff of NBP bank is very promising

and intellectual, expert in their work, well mannered and efficient. When you enter the bank,
you can feel the difference at first sight.
From last many years this branch is not only achieving its targets of deposits and advances
rather it remains above the targets. According to the financial record of last year this branch
was earning more than 20% of total profit of the region.
Every year the targets of this branch are increasing by 20 to 25percent but still there is a
potential in the market to meet these additional targets. This branch is performing its functions
in traditional style and most of the work is done manually but in spite of all challenges and lack
of resources the branch is now trying to make most of its activities computerized.
I preferred to do my internship at National Bank of Pakistan the reason was that it is largest and
leading commercial banks of Pakistan and I want to continue my learning at well reputed
organization which would be productive both for the organization and me as well. NBP is
responsible to provide all services to its customer.
Starting and ending dates of My Internship:
I started my internship in National Bank of Pakistan on 10th
August 2012. I worked there for 6
weeks. My internship ended on 27th
September 2012.

NNBBPP RRaaiillwwaayy RRooaadd
BBrraanncchh’’ss DDeeppaarrttmmeennttss
FFoorreeiiggnn
EExxcchhaannggee
DDeeppaarrttmmeenntt
MMaannaaggeerr
DDeeppoossiitt IInn
cchhaarrggee
CCrreeddiitt IInn
cchhaarrggeeOOppeerraattiioonn
MMaannaaggeerr

Departments Incharge Head of Departments
Foreign Exchange Mr. Rana Ijaz Ahmad
Deposit Incharge Mr. Javaid Iqbal
Operations Manager Mr. Ansir Mehmood
Manager Mr. Malik Imtiaz
Credit Incharge Mr. Laeeq Ahmad
MY Learning as a Trainee After joining the bank for internship initially it was so difficult for
me to get the attention of the employees, everybody was terribly engaged in their own
activities, and nobody was having time to accommodate me. This was a crucial time for me to
get the attention of NBP bank’s management and to make them realize that their valuable
information is so much necessary for the up gradation of my knowledge and for the completion
of the task which I was assigned by the institution. But very soon I succeeded in making
relationship with the top influence people and with the help of these people I started permeated
in the system. This was my first step towards the completion of my task and with the passage of
time they realized that they could also utilize my efforts in a productive way to minimize heir
burden. They provided me their time and information, which helped me to enhance my
knowledge, and they also shared their experiences with me, which I believe that it would be
helpful in my practical life
Supervisor
The employing institution is expected to provide a supervisor for the intern. Supervisors
normally hold an advanced degree and have several years of successful experience in their
professional positions.
The supervisor is expected to determine the role of the intern and the specific tasks to be
accomplished. The supervisor is expected to furnish a written evaluation of the intern at the end
of the semester. The supervisor should contact the coordinator of internships if problems arise
with the intern's placement.

Details of My Supervisor:
I joined NBP situated at Railway Road on 2nd
July 2011 there I have worked in various
department of the branch. The name of my supervisor was Mr. Ansir Mehmood. Who was
Operation Manager in NBP. He was very cooperative and guided me in my all works. The
whole staff in the branch was really cooperative and helpful in providing knowledge to me
regarding the operational workings of the banking setup and their concerned departments. In
fact due to their genial and gregarious attitude I am being able to get a bulk of knowledge about
the concerned areas.
Work done by me
In NBP I worked in many departments;
 Account Opening
 Deposit Section
 Clearing Department
Whenever a new customer enters in the bank with the intention to open an account, the banker
is required to determine his/her category according to his status and needs.
NBP has following categories of accounts:
Individual
Account Joint Account
Partnership Account
Company Accounts
Accounts of the Welfare/ Societies/Clubs/ NGOs
Procedure Of Account Opening;

Account Opening Form;
The first step in the procedure of opening an account is the filling of Account Opening form. At
NBP the account opening form is titled as the Relationship Contract. It contains all the requisite
information needed to open and operate an account according to the specified rules and
regulations.
Contents Of Account Opening Form;
The following details are required to furnish the Relationship Contract.
1. Title Of Account:
It is the name through which the customer is intended to operate an account.
2. Account Number:
This is the serial number given to each account number through which an account is accessed
whenever it is needed.
3. Personal Information:
After giving the title to the account, the personal information of the customer is written down
in the Account Opening form, like Name, Father’s name, Mother’s name, Employment
information (Address of employer, Name of employer, job title) in case of a salaried person,
NIC #, Nationality, Residential Address, Phone number etc. In case of joint account the
personal information of each account-holder is taken.
4. Next of kin
Mention Name & address of person/next of kin to be contacted for ascertaining consumer’s
whereabouts after the expiry of three years from the date of last operation in his account, to
inform him/her of the existence of his account when customer were not available at the given
date.
5. Address for the correspondence
Address of the customer is needed to contact the customer. 6. Corporate account In case of
company account the additional information regarding the address of the Head office and Date
and Place of the incorporation is required.
6. Type of entity

That either the applicant falls under the category of individual, sole proprietor or company etc.
8. Nature of the account
e.g. example current account.
9. URRENCY OF ACCOUNT
Customer has to mention the currency, in which he is going to operate.
10. Details of the term notice & call deposit
It includes No. of receipt, Amount, Period of the deposit.
11. Zakat deduction instruction
12. Instruction for operation of account
Under this head the applicant specify that how he/ she will operate the account. If applicant is
individual then he will select the option of „Single‟ but in case of a joint account the customers
have to make choice among the options of the „Joint‟ and .
13. Introducer’s detail
The introducer’s name, account no., introducer’s signature and the signature and stamp of
the verifying officer are also required to fill in the account opening form.
14. Declaration
In the end the applicant(s) agree with the rules and regulations governing the account operating
activities by signing the Relationship Contracts. In case of sole proprietor or company account
the stamp of the business should be affixed.
15. Terms & conditions governing the account
The account opening form of every bank has the terms and condition governing the account as
its complementary part so that the customer will be aware of all these terms at the time of
entering this contract. These terms and conditions should be read and signed by the
applicant(s).

Acceptance and verification of documents
After filling the Relationship contract the bank officer asks the required documents from the
customer as mentioned above in case of each entity. The necessary verification is done.
1. Verification of the CNIC
According to the regulation of the SBP now the banker is responsible to verify the CNIC from
NADRA. For this purpose the customer signs an authority letter by which he/ she gives him the
authority to verify the CNIC through the on-line CNIC verification service of NADRA.
2. Signature different from CNIC
If the customer wishes to use a signature to operate his account which is different from the one
on his national identity card, then he will give an Undertaking under the witness of the
Introducer, that he will be responsible for this change of signature.
3. Signature specimen card
An important and foremost thing to be signed by a customer is the Signature Specimen Card
(SSC). Afterward this card is used to match the signature of the customer every time he or she
deals with the bank. The original card is sent to the head office after scanning it to the system.
4. Account of the illiterate person
In case of the account of an illiterate person the only photo account can be opened. In this
account the customer has to come personally to the bank every time he/ she will deposit to or
withdraw from his/ her accounts. So, some additional documents are required to obtain from
such applicant at the time of opening a photo account like two photographs of applicant(s), one
is put on the account opening form and the other one is out on the signature card. Also a
declaration is signed by the customer in order to open a photo account, on which the thumb
impression are taken of the customer. This is done under the witness of the introducer.
5. Application for the on-line arrangement for
Clearing/transfer/cash transaction
If the customer wants to have the account to be on-line, so that he can avail the facility of the
on-line banking, then he will sign the application for the use of this facility at time of opening
an account or at any time later on.

6. Know your customer (kyc)
It is a document which is prepared under the special instruction of the SBP. As per SBP
regulation it is very important for the banker to know his customer very well. This form is
prepared by the account opening officer according to the information given by the customer to
him.
Issuance of cheque book:
1. First time issue of the cheque book
After the account is opened, the customer requires a cheque book to conduct operation in his
account. In order to have a cheque book the account holder signs an application to issue a
personalized or blank cheque book.
Personalized cheque book:
A cheque book having the account title and account number printed on it is called as
Personalized Cheque Book. This assures the safety of the cheques to be used.
Blank cheque book:
It is the simple cheque book with no account title or account number on it
2. Reissuance of cheque book
When two or three leaves are left in the cheque book, the account holder can demand for a new
cheque book, so customer fills “requisition slip” which is attached in cheque book and gives to
banker and receives a new cheque book for continuing the account. An account holder can also
any other person to receive the new cheque book by giving the authority in the requisition slip.
The authorized person should bring the copy of CNIC to receive the cheque book.
3.Loss of the cheque book
In case the cheque book is lost by the customer then first step the customer should take is to
stop the payment of all the cheques. The charges for stopping the payment are Rs.200/- per
cheque or Rs.500/- for the whole cheque book. The report the cheque numbers of the remaining
cheques at the time of the lost. The officer of the NBP will enter these numbers in the system as
stopped. Now nobody can encash these cheques all over the Pakistan at any branch.

Closing of account:
There are number of reasons, why an account is closed. Some of most common reasons are
mentioned below:
At the client‟s own request
Death of account holder
Bankruptcy of account holder
Liquidation or winding up under the companies act.
GOVERNMENT DEPARTMENT (few days)
Government Department is very important section of the Bank because it is responsible for any
penalty imposed by SBP due to the negligence / non completion of work / books and balancing.
All officers monitor all heads of Govt. Section for well in time reporting in monthly, quarterly,
annual return to controlling office.
Government receipts:
Government receipts means collection of the following
Income tax
Property tax
Sales tax
Traffic challans
Court fine
Government payments:
Government payments include;
1. Salary payments
2. Pension Payments
Department of Government section receives all the provincial and central receipts.
NBP makes payments to following:
Civilian
Defense civilian pensioners

Retired officers of Armed forces
Retired officers of PAF and families
Others (KRL, Oil Gas Development Corporation, Pakistan Aero E Complex /
PR, RANGERS)
Documents required for the pension payments:
Pension payment order
No and date of CNIC
Two specimen signature, thumb and finger impression
Photographs of the pensioner
Pension book
Officer enters them in a ledger to keep permanent record.
Documentation:
Disburser portion of the PPO is filed in serial No and kept in lock and key with accountant. All
particular of PPO are entered in PPO register. The first payment is made to pensioner after
proper identification. In case any clarification staff referred the pensioner to general accountant
or Head office.
Cash Deposit (Pay-In-Slip)
Here it is very necessary to have knowledge about Pay-In-Slip
It is used for two purposes
Whenever we want to deposit cash in our account then pay-in-slip is used by writing
amount on it and depositing it to cashier along with money.
Whenever we have cheque from any party to be collected in our account we fill pay-
in-slip. One part is attached with cheque and another is given to cheque holder as a
receipt

Procedures of Withdrawals
There is a complete process in case of cash withdrawal. Customer deposited cheque in deposit
department for withdrawals or transfer of amount through cross cheques.
The deposit department verifies the signature of the account holder through SS and other
requisites of the cheque. In case of any discrepancy the cheque is returned to the customer.
The deposit department checks the balance in the account of the customer through Computer in
Bank Branch Office (BBO).If the a/c of the account holder has balance equal to the cheque
amount they pass the cheque to cash department and post a Cash Paid stamp on it. Deposit
department debit A/C holder in computer and cash scroll register.
The cash department pays the amount to the customer on counter and cancels the original
cheque.
After the clearance of the cheque from deposit department the customer received cash from the
cashier by giving him token. The original cheque is then crossed by the cashier.
SS cards verification is one of the most difficult works of this department; I also go through
only specific activities in which the heads of verified informed me.
Whenever customer deposit amount in his account through cross cheques or security
documents by transferring he has to fill the cheque pay-in-slip and is deposited into the deposit
department. The deposit department after verification and scrutiny of cheque passed the cheque
to remittance department

When cheque is signed for someone by his/her name. The counter payment is made only to that person
by name the cheque is signed.
The cheque which is not cashed on the maturity date is called dishonor. This is also called out -dated
cheque.
money payable at a certain place within or outside the country through various way i.e. Bank
draft, Telegraphic Transfer, Mail Transfer, Coupons, Govt. Draft. It works both inward and
outward. It was my first department. The controller of section who is a very competent person.
Duties performed by him are;
Issuing of demand draft
Issuing of payment order
Issuing of Mail transfer
Issuing of Telegraphic transfer
In this section I learnt about issuance of PO, DD, MT, and T.T. I made all the four categories of
funds transfer. Sir. Rana helped me a lot to achieve this target. I only made vouchers of PO,
CDR and DD. The Manger only does TT because it is a secret way of transfer funds. I sorted all
the daily remittances; handed them to the respective officers. Sir Rana helped me a lot in
general understanding of the bank functioning. I prepared several cheque books and enter the
detail into the cheque books issuance register. I also learnt to cheque posting on system. In the
cheque book posting something which are necessary, account number, cheque number and
amount to be debit or credit should be matched.

D.D & P.O: P.O is used locally and to transfer amount within the city whereas D.D is used for
outside the city.
Demand draft
Procedure:
First on the request of the customer all the details for issuance are demanded from customer
The customer can be account holder or non- account holder.
While issuing the bank draft the care is taken that draft should be free from
alternations.
All the details must be clearly written in ink.
After deduction of charges, issuance of demand draft is handed over to the
applicant.
Its advice containing the particulars of the draft is sent to the drawer branch with
its necessary information and payment of draft is make on its presentation.
Payment order
Procedure:
Two applications forms called credit vouchers for payment and for bank commission
are made.
Application form is attached with cheques , debit authority or make payment in cash.
Then the payment order is made.
Then payment order is given to the customer.
Pay order for clearing again come to National bank of Pakistan.
Nothing is sent to next branch, no fanfold is made.
Mail transfer
This is the facility just for account holders. Amount of M.T & T.T is transferred in account of
payee. Mail transfer is time consuming while telegraphic transfer is fast.
Procedure
Filling of application form.
Then make payment.

Preparation of M.T advice.
Then fanfold is made on F15.
M.T advice plus fanfold ( red copy ) is sent to responding branch.
M.T code is 22.
Telegraphic Transfer:
Procedure
Filling of application/ request form.
Then payment is made.
Then make massage voucher (telephone number is written at top of it ).
Then telegram transfer confirmation is made (F-15).
Massage is sent immediately by fax and T.T confirmation is sent by telegram.
F15 blue is filled and original red is sent to responding branch.
T.T code is 21.
Issues Faced By The Branch
OR
Critical Analysis
During the internship I got practical experience that does not meet the theoretical concepts. I
present here some critical analysis:
NBP has no great facility for their employees for training of new technologies. This
situation creates difficulty for handling new challenge.
An employee deals various nature of work.
Due to heavy load of work staff attitude does not ideal for an organization where public
dealing is at large scale.
Work environment was not ideal due to heavy customers visit in a single day.
Furniture, light and sitting arrangement was not good for customers and bank
employees.

Work specialization and job specification are found very low in bank’s employees.
Business administration qualities and education is at low side.
There is shortage of staff in the Bank. Number of customer per
Employee is very high. Cash department is suffering very badly and facing great deal
of over workload.
Staff hesitates to use new technologies especially the cash department. Even old
employees are not able to operate PCs.
I feel that there is communication gap between top
Management and workers. They have fewer chances to communicate effectively.
No justified appraisal criteria are implemented for annual increase in salary and
promotion of staff. It creates un-satisfaction among the employees of the Bank.
I observed that some times employees are not involved in decision-making process.
Manager himself takes decision and orders to make changes.
Branch has the problem of telephone operator which can save the time of not only
manager but other staff as well. On the other hand bank’s communication system was
not doing well. Therefore as an internee I felt that there should be a telephone operator
who can easily handle this situation

SWOT analysis, method, or model is a way to analyze competitive position of your company.
SWOT analysis uses so-called SWOT matrix to assess both internal and external aspects of
doing your business. The SWOT framework is a tool for auditing an organization and its
environment.
Swot matrix includes both internal and external factors ;
Strengths: characteristics of the business, or project team that give it an advantage over
others
Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative
to others
Opportunities: external chances to improve performance (e.g. make greater profits) in the
environment
Threats: external elements in the environment that could cause trouble for the business or
project
Situational
analysis
Internal analysis External analysis
Opportunitie
s
WeaknessesStrengths Threats

Swot analysis of NBP
STRENGTHS:
National Bank is the Nation‟s Bank
Oldest institution
Outspread network In Top 5th bank
AAA credit rating
Experience & all round staff
Government institution
Its paid-up capital is very high
Very less uncertainty because of a Govt. bank
The biggest customer of NBP is Govt. of Pakistan
Provide High packages to employees.
Provide high staff benefits
Western union and express money transfer
On line system
Transfer of fund or cash with few minute
Strong security system
Efficient record of customer
Agency Arrangements
Advance salary &Attractive product
High ratio certificates

WEAKNESSES:
Lengthy procedure in nbp
Poor environment
Poor image in mind of people
No proper marketing effort
Lack of coordination among employee
Favoritism and Nepotism
Political interfering
Poor working equipment
In many branches management is not up to date.
In small areas branches employees have less education.
Award and promotion policies are not implemented in all branches.
There is no concept of job rotation
Inefficient counter services in the rush hours
Uneven work distribution
Lack of staff
OPPORTUNITIES
Electronic banking
Efficient staff
available in marketing
Starting of the retail banking initial working.
Market penetration available in local as well as in foreign market.
Basic and business equipment offers on loan
It can introduce comprehensive form of bound
Award for employee performance
Corporate planning learning
THREATS:
Customer complaint

Major competitors offers attractive product
24 hours banking &E banking
Larger facility of ATM by other bank
Denationalized commercial bank
The hiring of uneducated people
Saving of people decreasing

FINANCIAL STATEMENT OF NBP

Financial statement analysis
Financial statement analysis is the process of identifying of financial strengths and weaknesses
of the firm by properly establishing relationship between the items of the balance sheet and the
profit &loss account," It is a valuable tool used by investors and creditors, financial analysts,
and others in their decision-making processes related to stocks, bonds, and other financial
instruments. The goal in analyzing financial statements is to assess past performance and
current financial position and to make predictions about the future performance of a company.
Investors who buy stock are primarily interested in a company‟s profitability and their
prospects for earning a return on their investment by receiving dividends and/or increasing the
market value of their stock holdings. Creditors and investors who buy debt securities, such as
bonds, are more interested in liquidity and solvency: the company‟s short-and long-run ability
to pay its debts. Financial analysts, who frequently specialize in following certain industries,
routinely assess the profitability, liquidity, and solvency of companies in order to make
recommendations about the purchase or sale of securities, such as stocks and bonds. The
analysis of financial statement refers to the examination of the statements for the purpose of
acquiring additional information regarding the activities of the business. The users of the
financial information often find analysis desirable for the interpretation of the farm’s
activities.
Techniques of Analysis
Three techniques may be used in evaluating financial statement data:
Ratio Analysis
Horizontal Analysis,
Vertical Analysis

Business Volume of NBP 2010
2010 (Particulars) (Rs. in Million)
Total Assets 1,035,025
Deposits 832,152
Advances 477,507
Investments 301,324
Shareholder’s Equity 103,762
Pre-tax Profit 24,415
After-tax Profit 17,563
Earning Per Share (Rs.) 13.05
Number of Branches 1,289
Number of Employees 16,457

Ratio Analysis
Ratio
Analysis
National Bank of Pakistan
(Net profit/ Revenue) *100
Year 2010 Year 2009 Year 2008
1. Net
Profit
Margin
17,563,214/
88,472,134*100
=19.85%
17,561,846/
77,947,697*100
= 22.53%
15,458,590/
60,942,798*100
= 25.36%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Net Profit Margin

Ratio
Analysis
(Mark-up / return / interest earned - Mark-up / return / interest
expensed) / Mark-up / return / interest earned*100
2. Gross
Spread
Ratio
43,221,658/
88,472,134*100
= 48.85%
37,458,048/
77,947,697*100
= 48.05%
37,058,030/
60,942,798*100
= 60.80%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Gross Spread Ratio

Working of Net Interest Margin
Net Interest Margin = Mark-up / return / interest earned - Mark-up /
return / interest expensed
2010) Net interest margin = (88,472,134-45,250,476)
= 43,221,658
= 37,458,048
= 37,058,030
Ratio
Analysis
non mark-up/interest income/ (non mark-up/interest income +Mark-
up/return/interest earned)*100
3. Non
Interest
Income to
Total
Income
17,632,640/
106,104,774*100
= 16.61%
19,025,357/
96,973,054*100
= 19.61%
16,415,862/
77,358,660*100
= 21.22%

Working of Total Income
Total Income = (non mark-up / interest income +Mark-up / return / interest
earned)
2010) Total Income = (17,632,640+88,472,134)
= 106,104,774
2009) Total Income = (19,025,357+77,947,697)
= 96,973,054
2008) Total Income = (16,415,862+60,942,798)
= 77,358,660
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Non Interest Income to Total Income Ratio

Ratio
Analysis
Interest Earned / Interest Expensed
4.Spread
Ratio
88,472,134 /
45,250,476
=1.95 times
77,947,697 /
40,489,649
= 1.92 times
60,942,798 /
23,884,768
= 2.55 times
0
0.5
1
1.5
2
2.5
3
Spread Ratio

Ratio
Analysis
(Net profit/ Total assets) *100
5.Return
on
Assets
17,563,214/
1,035,024,680*100
= 1.69%
17,561,846/
944,582,762*100
= 1.85%
15,458,590/
817,758,326*100
= 1.89%
1.55%
1.60%
1.65%
1.70%
1.75%
1.80%
1.85%
1.90%
Return on Assets

Working of Total Assets
Total Assets Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
Cash and
balances
115,442,360 115,827,868 106,503,756
Balances with
other banks
30,389,664 28,405,564 38,344,608
Lending to
financial
institution-net
23,025,156 19,587,176 17,128,032
Investments-
net
301,323,804 217,642,822 170,822,491
Advances-net 477,506,564 475,243,431 412,986,865
Operating
fixed assets
26,888,226 25,147,192 24,217,655
Deferred tax
assets
6,952,666 3,062,271 3,204,572
Other assets-
net
53,496,240 59,666,438 44,550,347
Total 1,035,024,680 944,582,762 817,758,326

Working of Total Equity
Total Equity Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
Share capital 13,454,628 10,763,702 8,969,751
Reserves 24,450,244 22,681,707 19,941,047
Un appropriated profit 65,857,438 60,696,510 52,456,204
Total 103,762,310 94,141,919 170,822,491
Ratio
Analysis
(total debt/ total equity)
9. Debt /
Equity
Ratio
906,528,852/
103,762,310
= 8.73 times
825,676,384/
94,141,919
= 8.77 times
715,299,108/
81,367,002
= 8.79 times
8.7
8.71
8.72
8.73
8.74
8.75
8.76
8.77
8.78
8.79
2008 2009 2010
Debt / Equity Ratio

Working of Current Liabilities
Total Current Liabilities Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
Bills payable (short term) 8,006,631 10,621,169 10,219,061
Borrowings (short term) 17,154,131 37,057,189 37,409,288
Deposits and other accounts
(short term)
816,172,861 655,031,896 614,538,859
Liabilities against assets
subject to finance lease
(short term)
43,963 20,408 16,517
Other liabilities (short term) 26,248,782 22,563,058 20,721,736
Total 867,626,368 725,293,720 682,905,461
Ratio
Analysis
Dividends paid to Shareholders/ Average common
shares outstanding
13. Div Per
Share
8,072,777/
1,345,462.8
= Rs.6
5,830,338/
1,076,370.2
= Rs.5.41
6,115,739/
869,975.1
= Rs.6.81
0
1
2
3
4
5
6
7
2008 2009 2010
Dividend Per Share

Conclusion
 The net profit margin of NBP in all of the years is good.
 Gross spread ratio is also good in all of over the years.
 Spread ratio of NBP is also good because it covers its interest expenses.
 Non Interest Income to Total Income Ratio of NBP is good.
 Return on assets ratio of NBP is low.
 Dupont return on assets ratio is also low.
 Return on total equity ratio is good in all over the years.
 Debt ratio of NBP is very high in all of the year that is not good.
 Debt ratio of NBP is very high in all of the year that is not good.
 Debt to equity ratio is also too high of NBP that is not god.
 Time Interest earned ratio of NBP is good.
 Advances / Deposits ratio is very low and not good for NBP.
 Operating Cash Flow ratio is also very low in all over the year that is not good.
 Dividend per share ratio of NBP is good.
 Earning per share ratio is very good.
 P / E ratio is also good of NBP.
Recommendations
 NBP can also increase the net profit margin ratio by decreasing its non mark-up interest
expenses and taxes.
 NBP can increase more its gross spread ratio by decreasing the interest expenses.
 Return on assets ratio & Dupont return on assets ratio can also be increased by utilizing
the assets in an efficient manner.

 NBP need to decrease its debts to manage the debt ratio because a high debt is not a
good sign for NBP.
 Debt to equity ratio is also very high. NBP should decrease its debts because the equity
investors will not invest in it due to high debts.
 NBP can increase its advances / deposits ratio by giving advances to the customers.
 NBP needs to improve its liquidity by increasing assets for operating cash flow.
General observation
I have divided general observation in four parts. Which are as under. This analysis is mainly
based on my general observation.
Problems at the branch.
Function analysis.
Administrative analysis.
PROBLEMS AT THE BRANCH
Customer Satisfaction
Poor record management and filing system
Unequal distribution of work
Marketing visits
FUNCTIONAL ANALYSIS
Formal Organization
Difference between theory and practice
Bank duty to maintain secrecy
More accounts fewer deposits.
Delegation of authority
ADMINISTRATIVE ANALYSIS

Job analysis is not effective
Carelessness in opening of account
Lack of specialized training
Low Profit Rates
Poor job rotation.
Lack of appreciation
General Suggestions
NBP is an effectively operating and profit making organization and carrying out its activities
under a specified system of procedure. The main regulatory body is State Bank of Pakistan,
which provides policy guidelines and ensures that the money market operates on sound
professional basis. While the head office specifies the whole procedure of function and
operations. This procedure has been modernized with the passage of time with a view to
streamline the approach and underlying procedure for effective overhauling of its own
capabilities so as to bring them at par with international practices.
Here I am giving some suggestions, which in my view can add some input for efficiency and
better performance of NBP as an organization in genera and City branch in particular.
The recommendations are as follows:
Professional training
NBP staff lacks professionalism. They lack the necessary training to do the job efficiently and
properly.
Delegation of authority
Employees of the bank should be given a task and authority and they should be asked for their
responsibility.
Performance Appraisal
The manager should strictly monitor the performance of every staff member. All of them
should be awarded according to their performance and result in the shape of bonuses to
motivated and incite them to work more efficiently.

Changes in Policies
There should not be any abrupt policies change by the upper management, as this practice hurts
the customer confidences in the bank. Government should make long term policies
Need of Qualified Staff
Required, qualified staff should be provided to branch in order to improve the functioning of
the branch. Especially a telephone operator should be appointed.
Interest on Overdraft:
Overdraft is a short-term credit facility provided by the bank to its trustworthy customers free
of interest. Only bank commission is charge small amount of mark-up on the overdraft, which
will help the bank to improve its revenue position.
Improper Distribution of Work
During my internship I observed that there was no proper distribution of work in the bank. I
saw that some of the employee worked like ants other sat idle starting here and there. So this
created a lot of over work situation for while relaxation for other.
Managerial Leadership
In the analysis, we have discussed the difficulties of the assistant in taking any initiative;
therefore it is recommended that the assistants should he given special training to make them
ready for the leadership.
Avoiding Bad Debts
Great care should be taking while extending the loan. Loans should be awarded against
reasonable securities, where market value should be equal to the loan granted.
Policies should be crafted in a way to ensure that no loan is extended on political pressure. SBP
regulation for loan approval should be strictly followed. According to which the current ration
of borrower‟s business must be 1:1 and the debt to equity ratio should be 60:40, means the
liquidity position of business should be healthy.

LIMITATION OF THE STUDY
Something is better than nothing. No matter how efficiently a study is conducted, it cannot
be perfect in all respects. This study was conducted in accordance with the objectives of the
study. The study may not include broad explanations of facts and figures due to the nature
of the study. Secondly, the limitation, which affects the study, is the restriction on
mentioning every fact of the bank due to the problem of secrecy of the bank. In addition, the
availability of required data was a problem as all the documents and files are kept strictly
under lock and key due to their strictly confidential nature. Thirdly, the problem of short
time period also makes the analysis restricted as one cannot properly understand and thus
analyze all the operations of a bank just a very short time of six weeks.

REFERENCES
1. www.nbp.com.pk
2. www.reports.com Businessrecorder.com Books of money banking finance
3. Www.sbp.com.pk
4. http://commerceplus.blogspot.com/2010/07/internship-report-on-nbp.html
5. http://en.wikipedia.org/wiki/National_Bank_of_Pakistan
6. http://www.nbp.com.pk/Publications/AnReport2010.aspx
10.http://www.nbp.com.pk/aboutus/DReport2.aspx
11.http://www.scribd.com/doc/50173350/NBP-Internship-Reports-Download
12.https://sites.google.com/site/deultimates/internship-reports-or-projects/finance-
data-reports
13.https://weblyceum.com/showthread.php?t=10687
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15.http://aiousolution.babelred.com/categoria.asp?idcat=81
16.http://www.nbp.com.pk/EcomomicBulletin/FS-Complete-31-12-2010.pdf
17.i
http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
18.http://www.slis.indiana.edu/courses/internship/guidelines.html
19.http://www.amcy5.com/Reports/internship/amcy20.htm
20.Economic Research Wing, National Bank of Pakistan.
21.NBP News lines, National Bank of Pakistan‟s Newsletter January 2011.
22.Management Brief, January 2011 published by Human Resources

23.Management and administration Group, National Bank of Pakistan Head Office
Karachi
24.Annual Report 2010, published by NBP, Head Office Karachi. Brochure- NBP
Awards & Achievements.
25.http://www.nbp.com.pk/nbp/About_Us/About_US.jsp
26.Black's Law Dictionary page 471 (5th ed)
27.Kotler, P., Armstrong, G., Brown, L., and Adam, S. (2006) Marketing, 7th Ed.
28.Principles of marketing 8 ED by Kotler & Armstrong G7
29.Practice & Law of Banking in Pakistan by Dr. Asrar H. Siddiqui 7th
ed page no 87
ed page no 91
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ed
33.http://www.nbp.com.pk/Aamdani/index.htm
34.http://www.nbp.com.pk/Premium/index.htm
35.http://www.nbp.com.pk/Saibaan/index.htm
36.http://www.nbp.com.pk/advancesalary/index.htm
37.http://www.nbp.com.pk/CashnGold/index.htm
38.http://www.nbp.com.pk/StudentLoan/index.htm
39.SBP Prudential Regulations
40.http://www.nbp.com.pk/nbp/NBP_Treasury.jsp
41.http://www.nbp.com.pk/nbp/Treasury_Products.jsp
42.http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp
43.http://www.nbp.com.pk/nbp/About_Us/DReport3.jsp
44.http://www.jcrvis.com.pk/ratingscale/rating_process.htm
45.http://www.scribd.com/doc/13314549/Internship-Report-of-NBP#outer_page_52

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