Sana Ahmed completed a 6-week summer internship at the Royal Bank of Scotland (RBS) in their Branch Banking department. She was placed in the Royal Preferred Banking (RPB) section, which caters to high-profile customers. During her internship, she assisted customers with account openings and transactions. She also updated customer records and informed customers about upcoming zakat deductions. Sana rolled over term deposits, completed financial transaction compliance checks, and presented her internship experience to the HR department. She found that her college courses in business speech, writing, money and banking, business finance, and human resource management helped her understand banking operations and regulations and perform her internship responsibilities effectively.

1. Internship Report
2010
PREPARED BY
SANA AHMED

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Royal Bank of Scotland Summer Internship Report 1
2. Table of Contents
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3 Department’s Details ………………………………………………………. 2
3.1 Functions of the Department …………………………………………….. 2
3.2 Work done in the Department …………………………………………… 6
4 Theories learned and their Application …………………………………... 9
4.1 Name of the Department ……………………………………………...…. 9
4.2 Theories learned at College …………………………………………....... 9
4.3 New Theories Learned ………………………………………………… 12
5 Conclusion ………………………………………………………………14-15

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3. Department’s Details
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Department Branch Banking
Supervisor’s Name Moazzam Faridi
Designation Branch Manager
Duration 6 weeks
The Branch Banking at RBS is divided into two major sub departments. One is General
Banking GB for the customers who maintain minimum of PKR 50,000 in their savings
account and other is Royal Preferred Banking RPB for the high profile customers who
maintain PKR 3,000,000 in their savings account. A separate Transaction Area for each
sub departments’ customers is available along with only one Operations Department /
Back office.
I was placed at RPB for six weeks of my learning .Functions of both the departments are
more or less similar; the only difference is that of quality of services and comfort for the
customers provided at RPB is excellent.
3.1. Functions of the Department
RBS has the following functions at VG particularly,
1- Liability Section
Liability Section plays a major role at VG, it deals with daily cash transactions like pay
orders, Demand drafts, swift transfers, Remittances, Internal Transfer and regular queries
of the customers regarding their accounts, balance inquiry, bank statement requests,
cheques, account opening in Local Currency LCY and Foreign Currency FCY, etc. Its
main area of specialization is:

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a- Marinating Deposit accounts
At RBS, there are five types of Deposit accounts, Access Account - in which profit payment
is on monthly basis, minimum balance requirement is PKR 50,000, and it is more suitable
for traders and businessmen. Anchor Account - in which profit is calculated on minimum
balance and payable on monthly basis, minimum balance requirement is PKR 50,000.
Classic Account - in which profit is calculated on daily balance and payable on monthly
basis, minimum balance requirement is PKR 50,000. Service Account - It is non interest
bearing account, like a checking account, it is suitable for all businesses, sole proprietor
accounts with the minimum balance requirement of PKR 50,000. Value term Deposit –
minimum placement requirement is PKR 100,000 at GB and PKR 2,000,000 plus at RPB,
profit calculation is done on daily basis and profit payable is either on monthly, quarterly,
semi yearly or annual basis.
2- Loans
RBS provides various loan products to provide complete flexibility and liquidity to its
customers. Its loan products are:
a. Balance transfer Facility BTF
BTF is a kind of unsecured loan for which one is eligible if he is between the ages of 21 to
60 years and has a valid credit card facility. Personal line of credit limit is between PKR
50,000 to PKR 500,000. Mark up is charged only when you start using the loan amount
only. Mark up charged is decided by the bank and may fluctuate as per market conditions.
b. Home Finance
Mortgage financing is a secured loan i.e. bank disburses loan against a security which has
to be physical e.g.; property documents. Mortgage loan has following types: home finance,
home builder, home lender, home refinance and home deal. A loan is disbursed of about

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70% to 80% of the appraised value of home or up to PKR 50 million. And a schedule of
flexible installments is prepared by the bank for the repayment of the loan within the period
of 3 to 20 years. Mark up charged on loan is decided by the bank and it may fluctuate as
per market conditions.
c. N- Cash / Running Finance
Running Finance facility is provided mainly to business personnel with which they can
fulfill their working cash flow needs. This loan is basically a kind of project finance based
loan for capital investment or business expansion. It is a secured loan against which bank
takes cash or business documents as collateral. Mark up is charged on the amount utilized
only.
3- Bank Insurance products
RBS also serve as an agent to EFU General Insurance Ltd and NJI Insurance companies
and sell various products to its valuable customers. Blessings for life, Companion for Life
and Family first are offered by NJI, but are not being sold frequently these days due to
bad market conditions. Where as, Treasure Plus and Golden Years are being offered by
EFU and are sold most often to customers even today. Treasure Plus is designed for
people of age 45 years and below, TP is an investment plan with an added advantage of an
insurance cover aimed at providing for child’s education needs. One has to select a
premium amount to be paid for it and its term. Premium amount for consumer banking
customers is PKR 120,000 to PKR. 24 million. 60% or more of this amount is invested in
government securities and the rest of 40% is invested in marketable securities to earn the
return. Golden Years GY works the same way, although the annual premium for Consumer
Banking customers is PKR.180, 000; 192,000; 204,000. GY is for the people of age 45 and
above. It ensures that you have a sufficient stream of monthly pension after your retirement
RPB offers its clients an unmatched blend of personalized banking and wealth
maximization opportunities. It provides with the same Deposit accounts as GB and the

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same Loan products except for one type of loan i.e. Loan against Shares LAS- enables
you to borrow against your investment in shares-at their current market value, releasing
previously tied up capital. Bank assurances Products are the same. Other then this the
unique facility provided to RPB clients is the Relationship Privileges – a special
Relationship Mnager RM deals all accounts, he acts like a consultant and gives advice to
the clients in their best interest.
Relation of Branch Banking to RBS Objectives
At RBS, branch banking is one of the most crucial departments. It is interconnected with
various departments like Treasury, Cash Management Operations, Compliance and
Business Quality departments. The functions of branch banking are deeply connected with
the RBS objectives.
It serves like a retail location from where RBS offers a wide array of face to face and
automated services to its customers. It is the gate way from where bank receives the
customers’ money in form of deposits and further it can invest it in the market at desirable
rates for the bank. This reflects the bank’s Liability side. On the other hand bank can
channelize its own funds to the customers in form of loans at the higher rates and earns the
spread. This reflects the bank’s Asset Side. However, the spread kept by the RBS as per
the policy is always of 0.5% in any of the financial transactions.
A daily SDR Sales Depository Report is sent to all officials at the Branch Banking
indicating the funds coming in via Current, Savings Term deposits and Bank assurance
Products, which is viable for the bank. It helps in marinating the targets assigned to all
officials at GB and RPB. Business Quality BQ department also monitors the functions of
the Branch Banking and introduces new laws and does the necessary amendments for the
benefit of the Bank.
On Asset side of the Bank, Branch Banking gives the loans by offering various attractive
loan products and comforting customers in its repayment procedures. So that the maximum

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loan products could be sold out and the best mark up is charged on such products thus bank
earns the minimum spread of 0.5% at least and maximum of 0.75%, contributing to bank’s
profits.
It does not only focus on funds coming in but Branch Banking has to maintain the RBS
status as well. RBS is an international name and it has to stand out in the country for this
purpose it needs to satisfy its customers’ needs and provide them with complete facilities
and comfort. That is what Branch Banking department is providing to its best to its
customers. RPB is also engaged in providing world class services, luxurious lounges,
special attention via relationship privileges and special parking facilities to capture its
target market.
3.2 Work done in the Department
At VG I was placed at Greeter i.e. the Liability Section, where I was assigned the following
tasks on daily basis;
Initial learning
My first week as I was new was spent more in learning what different types of forms are
used and their reasons .I was made to learn to assess the customers and their loan positions
. I was given the understanding of how the department is working.
I was also assigned the duty of talking to the customers in respect to the comment and
suggestion cards, we took their complaints and suggestions as per their need and send all
these queries to the management which looks into the process. And in case of praise the
department is appreciated and rewarded.

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1- Since I was to sit on Greeter so it involves more of customer service, I was
responsible for helping customers in Filling Account Opening Forms, Deposit Slips, Credit
card payment slips, E- statement request forms, Pay order forms etc. Each and every
employee has the duty to take a round of the lobby area and transaction area just to check
if customers are getting their services done properly so was I supposed to do for an hour
daily at 10:00 am. It was so much of importantance because RBS has a goal of providing
the best services to its clients up to the level of multinational Bank.
2- I was assigned the task to fill the Risk assessment forms RAF of the customers
who have high risk level. Such forms are filled for business personnel particularly Sole
proprietors, for e.g.; a lawyer owning his own Law firm. And for the individuals who have
not confirmed their complete documents like address verification, employment letter, or
utility bills. RAF is a built in form by the bank available at the system in form of 3 Excel
sheets. Only the asked information is filled and sent to the Complaisance department. It is
necessary to fill such forms to avoid the risk exposure to the bank.
3- I was assigned the task to update the accounts of the VG customers such as NIC
numbers, Contact numbers, Home addresses on their system TCSS Total Customer
Service Suite and to add the necessary information like additional Cell numbers, Place of
work, Siblings Contact numbers on the IR Individual Recognizations screen on TCSS.
This task had helped a lot especially to the ARMs and RMs in doing compliances and
calling customers for financial transactions. Furthermore I had completed the task of Zakat
calling to about 950 customers at the updated contact numbers to inform them that 2.5%
of the amount in the customers’ savings account SA in LCY could be deducted if their
Zakat has not been declared. This task was to be completed before 30 days of Ramadan.
Zakat can not be deducted on Current accounts CA, FCY accounts, and Salaried
accounts. It was a quite important task to GB as it did not want the lump sum amount to
be deducted from customers’ TDs and SA thus it was bank’s responsibility to inform its
valuable customers’ regarding Zakat deduction.

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At RPB, I was guided to work under senior RMs and to sit at RPB Greeter and attending
customers. There I was assigned the following tasks,
4- At RPB, I was responsible for doing Rollovers of the TDs on daily basis when
the TDs are matured, at the rates on the Rack Rate sheet which was divided into three tiers-
one part shows the rates for the amount in TDs of PKR 500,000 to PKR 999,999, second
part shows the rates for the amount in TDs of PKR 1000,000 to PKR 4,999,999, and the
third part shows the rates for the amount of TDs of PKR 5,000,000 to PKR 10,000,000.
This Rack rate sheet was prepared by Treasury and the rates are revised on weekly basis.
There are three options of rollovers, First on maturity Rollover principal plus profit, second
is rollover principal and credit profit to SA or CA, third is move principal plus profit to SA
or CA i.e. Do Not Rollover DNR. These options are selected by the customers. Rates are
given as per the total relationship amount of the customers which is well known to the
clients’ RM or ARM. Zakat is applicable on TDs. On maturity date of TDs, I was suppose
to call clients and remind them about their rollovers and tell them the rate on rollovers and
book it for the next month or quarter or semi year or annual year. These rates are entered
in the spread sheet of rollovers sent by treasury and Market Opportunity rate MOR is given
from the money market rates as per the tenor and amount of TDs. And the spread is
calculated for the bank on these rollovers and sent to all the concerned departments.
5- I was also assigned the task of doing compliances of the financial transactions
at the RPB greeter of each and every transaction of more than PKR 100,000. Whether it is
cheque payment, cheque deposit or money withdrawal. In such a case an ARM or RM is
required to call the holder of the account particularly at the contact number recorded by the
customer on IR screen of TCSS and verify the financial transaction. And a mail is sent to
Branch Manager BM and Area Manager AM for further approvals to execute the
transaction. It is essential for any department as it decreases the risk factor and avoids the
false transaction to take place. It is one of the strict policies of RBS to be followed.

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4. Theories Learned and their Application
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4.1 Name of the Department
I was placed in the”Branch Banking particularly in the RPB Department.”
4.2 Theories Learned At College
1- Business and Professional Speech
This course has helped me in learning strategies and techniques for delivering effective
listening, informational, persuasive and public speeches, meetings, interviewing and group
interaction. It has guided me toward more effective speech communication in the business
world at all levels which I have got to practice at RBS as well. Oral presentations have
become a greatest aid in improving my skills and stage confidence. As I was asked to
submit a six slides presentation on my internship experience at the end to HR department.
2- Methods in Business Writing
This course has helped me in learning strategies and techniques for effective business
messages such as memos and letters; it has improvised both informational and analytical
writing skills of mine. This is the one course which has helped me in writing reports in
formal and informal format. And proved to be beneficial for me Internship report writing
as well.

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3- Money and Banking
This course helped me in understanding the monetary systems, financial markets, national
income components and their relationship to business activity. It has particularly helped
me in studying the history and regulations of the banking Industry of Pakistan. It has helped
me in getting a clear picture of asset and liability side of a local and foreign bank at
Pakistan. And how SBP’s necessary requirements and regulations imposed on banking and
financial markets. This knowledge has helped me in understanding the RBS structure of
assets and liability side and regulations imposed by SBP on RBS.
4- Introduction to Business Finance
In this course, I learned about an important concept of time value of money - time value of
money is the value of money figuring in a given amount of interest for a given amount of
time. Example 100 dollars of today's money held for a year at 5 percent interest is worth
105 dollars, therefore 100 dollars paid now or 105 dollars paid exactly one year from now
is the same amount of payment of money with that given interest at that given amount of
time. The same concept is practiced in the banks while solving problems related to
involving loans, mortgages, leases, , and annuities. And calculating interest on savings
accounts or term deposits i.e. customers invest their money in the bank and earn interest
on either monthly, quarterly, semi annually or annually basis.
5- Financial Institution
In this course, I learned about various types of financial Institutions and their working. The
basic role of financial Institution is to Financial institutions provide service as
intermediaries of the capital and debt markets. They are responsible for transferring funds
from investors to companies, in need of those funds. The presence of financial institutions
facilitates the flow of money through the economy. Same is seen at RBS as well, the
savings of households or business sector are channelized to market for further investment
so that bank earns the highest return on them in the market.

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6- Human Resource Management
This course has given me knowledge of some important concepts like recruitment and
placement procedures, training and development, compensation and labor relation. These
concepts have an important place in every organization. I also have observed these
concepts being practiced in RBS. Firstly I was interviewed by the HR department for
selection of internees program. Then I witnessed many productive employees were being
sent to attend the workshops and training programs at other branches of RBS. Later I
attended myself a training program on New Platinum Card launch (Credit Card) at RBS.
So it has proved the importance of these concepts in any organization.
7- Business Law
This course has helped in learning how an individual is subjected to laws and regulations
on daily basis. At RBS, Minor account is handled by a major / guardian. On attaining
majority the minor can operate his own account as per general law states. I also observed
some laws related to contracts and agreements of bank assurance products at RBS.
8- Principles of Management
In this course I studied the concept of Hierarchy and Management by Objectives MBO.
At RBS, organizational Hierarchy was formed at Branch banking i.e. arrangement of
individuals according to their authority and responsibilities, at Branch Banking Head was
the Area Manager under whom Branch Manager Works, then comes the Senior RMs and
under them are ARMs. And as in MBO process, specific performance goals are jointly
determined by employees and managers, both progress and accomplish these goals, later
they are periodically rewarded. Same scenario has been followed at RBS, portfolio targets
are mutually set by employees and mangers and employee work towards these objectives
and achieve their monthly target of funds coming in the bank of about PKR 5 million, later
they are promoted on their work done by the management.

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9- Computer Concepts and Applications
In this course I learned about the MS Office specifically MS word, Excel and Power point
which has helped me through out my BS (JH) courses and at the internship as well as I had
to prepare updated spread sheets of clients information and account balances and six slide
presentation on internship experience.
10- Principles of Marketing
In this course I have learned a very important concept in today’s market i.e. Customer
service relationship CSR, this concept is highly used in services industry like that of
Banking, even at RBS It was the mostly applied concept as all the RMs and ARMs are busy
in building and maintaining the profitable customer relationship by delivering superior
customer value and satisfaction.
11- Methods in Business Research
In this course I was taught about the collection of data from secondary sources, how to use
the best data and how to use it in the best manner so that it becomes useful While I was
writing this report I collected the secondary data from my course books and internet
including my internship experience. I discarded the irrelevant concepts to my internship
experience at RBS. It was in real a research writing project.
4.3 New Theories Learned
During my internship I learned a lot of new concepts and theories which I had no idea about
earlier. I learned to use their system TCSS which was mostly used by all the employees at
Branch. In addition to it I learned to run the lotus notes which was used as a medium of
communication through out RBS.

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I learned about basic banking which I had never come across. I learned to do Rollovers on
TDs, I learned what compliances are and how they are done at banks, I learned about RAF
and KYC concepts used in almost all banks, I learned about how bank earns the maximum
spread on its loans and deposit, I learned most importantly about public dealing at greeter.
This internship experience has helped me in choosing my career that may best suit me, and
it has boosted up my confidence and energy level and taught me the importance of
discipline and punctuality and how one should behave in the corporate world.
I also learned a new software known as the EDMS (electronic data management
system) this software is used to record all the paper wok that is done in the premises of
the bank all day For Example pay orders, Demand drafts, swift transfers, Remittances,
Internal Transfer, Bank statement request etc are recorded each day so that In case of a
mishandling or misplacing of a paper document they can acquire it through the EDMS.
5 Conclusion
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My internship at RBS started from 26th
OCTOBER 2009 to 7TH
DECEMBER 2009. My
experience as an intern is extremely helpful for my future studies and career choice. I
gained a lot of knowledge, skills and opportunities from my internship. Even I was
completely able to apply few of courses concepts and theories to what I have learned at
RBS.
Working environment of RBS is world class; all the employees are very welcoming and
ready to help internees like me. This internship experience has taught me discipline and
punctuality and how work is done at the corporate level. Most importantly I have learned
the public dealing and it has improved my confidence. I have learned to make contacts on
professional level which will hopefully turn out to be beneficial for me when I will enter
into the corporate world.

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I have learned that if one is given opportunity and complete know how of work done at a
particular place then one can achieve the success in a way. Same case was with me during
my internship. Overall my internship went pretty good as I got to learn a lot that will help
me in future employment as well.