sajid

INTERNSHIP REPORT
ON
NATIONAL BANK OF PAKISTAN
By
Syed Sajid Raza Rizvi
Roll No. 9316
Submitted in Partial Fulfillment of the Requirement for the Degree of
Master of Business Administration
At
Department of Management Sciences
National University of Modern Languages
Islamabad, Pakistan
June 2010
1

NATIONAL UNIVERSITY OF MODERN LANGUAGES
Faculty of Information Technology & Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and
recommended to the Faculty of Management Sciences for acceptance of Final Project
Report by Syed Sajid Raza Rizvi Roll No.9316 Session (Aug 2008 to June 2010)
Evening, in partial fulfillment of the requirements for the degree of Master of Business
Administration of National University of Modern Languages Islamabad.
Dated ________________________
Supervisor _________________________
Observer __________________________
Head of Department __________________________
2

Executive summary
To interrupt my skills and educational knowledge of Finance I done my internship in
National Bank of Pakistan (City Branch Kamalia) and to know how I will Work in
financial institutions and among various types of people have different attitude. The
objective of this Internship was to explore the issues relating to Finance and To find out
problems regarding the theoretical concepts with practical experience working in an
organization during the internship and study the system of National Bank of Pakistan.
There are many possible improvements, which we can make positive changes in the
system. There is shortage of employees in the organization. With development of online
banking system the load of work can be decreased. All the staffs do not know about
computer. There is almost one or two employees are trained to operate the system in
every branch. Especially, the cash department is not familiar with computer and
information system. It is not easy for it to implement a new system immediately it takes a
lot of time to replace systems. Once implemented its testing takes more time. So it is
important for the Bank to develop a research department for redesigning the operations of
the Bank. The Finance of the bank is experienced but not adequate with the changing
environment of financial institutions.
I observed that seniors are illiterate of computer and not technical hands. New comers
have more knowledge about business administration and skilled in information
technology. To update the skills, it is suggested to develop human resources training
programs and refresher courses.
3

ACKNOWLEDGEMENTS
Every praise is due to Allah alone the merciful and his Apostle (peace be upon him)
who is forever a torch of guidance and knowledge for humanity as whole.
I dedicate this project to my beloved parents and teachers, I am also thankful to my
parents and teachers who make me able to become a shinning star, and improve my
abilities. I am greatful especially to Mr. Ateeq Ur Rehman who provide me guideline
not only in study but also in practical life, so he is Mr. Faisalabad in my opinion.
I met different staff members of the National bank of Pakistan Ltd. For getting
information to complete my internship report. Therefore it is difficult for me to
mention all the names of these people, But there are some special persons from the
management of National bank of Pakistan Ltd. from whom I learned very much.
According to modern management philosophy customers are the first tutors who
teach the staff members indirectly. Basically every professional become successful
when he becomes in good books of his customers by knowing, their needs, demand
and wants. Basically customers are the back bone of every banking organization, so
customers have power even to fail any professional in his carrier.
At the end I am thankful to the following branch staff members,
RANA ISRAR SAHIB (Branch Manager)
Akmal Sahib (Operational Manager)
Sajjad Sahib (BBO Operator: Officer Grade II )
Ramzan Sahib (Head cashier: Officer Grade I)
4

Dedication
To Almighty Allah who has created us as crown of creation and enable us to learn. To my
parents who nurtured me well and inculcated in me the spirit to learn more and more.
To my teachers at all stages of study specially
Who always guided me in right direction, develop personality as a useful citizen for the
society and beyond them, to all of my friends from whom i learned much and to staff of
the bank branch who fully cooperated with me in the completion of my tasks.
5

Table of Content
Chapter # 1
INTRODUCTION.............................................................................................................9
1.1 INTRODUCTION 10
1.2 COMPREHENSIVE DEFINITION 11
1.3 IMPORTANCE OF BANKING 12
Chapter # 2
EVELUATION OF BANKING IN PAKISTAN...........................................................13
2.1 EVOLUTION OF BANKING STRUCTURE 14
2.2 COMMERCIAL BANKING IN PAKISTAN 15
2.3 DIFFERENT PHASES OF BANKING SECTOR 16
Chapter # 3
NATIONAL BANK OF PAKISTAN.............................................................................21
3.1 HISTORY 22
3.2 VISION 23
3.3 MISSION 24
3.4 HIERARCHYLEVEL 25
3.5 HIERARCHY CHART OF NBP 26
3.6 BOARD OF DIRECTORS 27
Chapter # 4
BANKING ACTIVITIES................................................................................................28
4.1 BANKING ACTIVITIES 29
4.2 BRANCH NETWORK 30
4.3 BUSINESS PHILOSOPHY 31
4.4 CORE VALUES 31
4.5 OBJECTIVES 32
6

Chapter # 5
SCHEMES OF NBP........................................................................................................33
5.1 LAUNCHING OF PRESIDENT’S ROZGAR 34
5.2 NBP SAIBAAN HOME FINANCE 37
Chapter # 6
SERVICES OF BANK....................................................................................................38
6.1 DEMAND DRAFTS 39
6.2 SWIFT SYSTEML 39
6.3 LETTERS OF CREDIT 39
6.4 PAY ORDER 40
6.5 MAIL TRANSFERS 40
6.6 FOREIGN REMITTANCES 40
6.7 TRAVELER'S CHEQUES 41
6.8 SHORT TERM INVESTMENTS 41
6.9 NATIONAL INCOME DAILY ACCOUNT (NIDA) 41
6.10 EQUITY INVESTMENTS 42
6.11 COMMERCIAL FINANCE 42
6.12 TRADE FINANCES OTHER BUSINESS LOANS 42
6.13 CORPORATE FINANCE 44
Chapter # 7
PROMOTION..................................................................................................................46
7.1 PROMOTION 47
7.2 ADVERTISING 47
7.3 DIRECT CUSTOMER CONTACTS 47
Chapter # 8
BENEFITS........................................................................................................................48
8.1. BENEFITS PROVIDED FUNDS 49
8.2 APPROVED PROVIDENT FUND SCHEME 49
7

8.3 MEDICAL ALLOWANCE 49
8.4 APPROVED FUNDED GRATUITY SCHEME 49
8.5 INTERNATIONAL ACCOUNTING STANDARD 19 49
8.6 BONUSES / STAFF LOANS 50
8.7 SIMPLE LOAN 50
8.8 HOUSE BUILDING LOAN 50
8.9 CONVEYANCE OR TRANSPORT LOAN 50
8.10 LEAVE FAIR ASSISTANCES AND ITS TYPES 51
Chapter # 9
MANAGERIAL POLICIES...........................................................................................52
9.1 RECRUITMENT POLICY 53
9.2 LENDING POLICY 53
9.3 STAFF DEVELPOMENT POLICY 54
9.4 PROCUREMENT POLICY 54
Chapter # 10
KAMALIA CITY BRANCH OF NBP(347).................................................................55
10.1 GENERAL BANKING DEPARTMENT 56
10.2 SERVICE MEETING REPORT 56
10.3 CUSTOMER COMPLAINT REPORT 57
10.4 ACCOUNT OPENING DEPARTMENT 57
10.5 LIMITED COMPANY 57
10.6 PARTNERSHIP 58
10.7 PROPRIETORSHIP 58
10.8 BAIT-UL-MALL ACCOUNT 59
10.9 PENSION ACCOUNT 59
10.10 REASON FOR CLOSING ACCOUNT 59
10.11 TRANSFER OF ACCOUNT 59
10.12 CHEQUE BOOK ISSUANCE 60
8

10.13 EXPENSE REGISTER 61
10.14 TRANSFER VOUCHERS 61
10.15 MISCELLANEOUS VOUCHERS 61
10.16 FOREIGN EXCHANGE 62
Chapter # 11
RISK FACTORS.............................................................................................................65
11.1 RISK FACTORS 66
Chapter # 12
SWOT ANALYSIS..........................................................................................................67
12.1 SWOT ANALYSIS OF BANKING INDUSTRY 68
12.2 SWOT ANALYSIS OF NBP 70
Chapter # 13
IDENTIFICATION OF PROBLEMS & RECOMMENDATION.............................72
13.1 IDENTIFICATION OF PROBLEMS 73
13.2 RECOMMENDATIONS 74
13.3 CONCLUSION 76
Annxure
Financial Analysis …………………………………………………….. i
A- Ratio Analysis i
B- Vertical Analysis ix
C- Horizontal Analysis xii
9

INTERNSHIP REPORT
ON
By
Syed Sajid Raza Rizvi
Roll No. 9316
Submitted in Partial Fulfillment of the Requirement for the Degree of
Master of Business Administration
At
Department of Management Sciences
National University of Modern Languages
Islamabad, Pakistan
June 2010
10

NATIONAL UNIVERSITY OF MODERN LANGUAGES
Faculty of Information Technology & Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and
recommended to the Faculty of Management Sciences for acceptance of Final Project
Report by Syed Sajid Raza Rizvi Roll No.9316 Session (Aug 2008 to June 2010)
Evening, in partial fulfillment of the requirements for the degree of Master of Business
Administration of National University of Modern Languages Islamabad.
Dated ________________________
Supervisor _________________________
Observer __________________________
Head of Department __________________________
11

Executive summary
To interrupt my skills and educational knowledge of Finance I done my internship in
National Bank of Pakistan (City Branch Kamalia) and to know how I will Work in
financial institutions and among various types of people have different attitude. The
objective of this Internship was to explore the issues relating to Finance and To find out
problems regarding the theoretical concepts with practical experience working in an
organization during the internship and study the system of National Bank of Pakistan.
There are many possible improvements, which we can make positive changes in the
system. There is shortage of employees in the organization. With development of online
banking system the load of work can be decreased. All the staffs do not know about
computer. There is almost one or two employees are trained to operate the system in
every branch. Especially, the cash department is not familiar with computer and
information system. It is not easy for it to implement a new system immediately it takes a
lot of time to replace systems. Once implemented its testing takes more time. So it is
important for the Bank to develop a research department for redesigning the operations of
the Bank. The Finance of the bank is experienced but not adequate with the changing
environment of financial institutions.
I observed that seniors are illiterate of computer and not technical hands. New comers
have more knowledge about business administration and skilled in information
technology. To update the skills, it is suggested to develop human resources training
programs and refresher courses.
ACKNOWLEDGEMENTS
12

Every praise is due to Allah alone the merciful and his Apostle (peace be upon him)
who is forever a torch of guidance and knowledge for humanity as whole.
I dedicate this project to my beloved parents and teachers, I am also thankful to my
parents and teachers who make me able to become a shinning star, and improve my
abilities. I am greatful especially to Mr. Ateeq Ur Rehman who provide me guideline
not only in study but also in practical life, so he is Mr. Faisalabad in my opinion.
I met different staff members of the National bank of Pakistan Ltd. For getting
information to complete my internship report. Therefore it is difficult for me to
mention all the names of these people, But there are some special persons from the
management of National bank of Pakistan Ltd. from whom I learned very much.
According to modern management philosophy customers are the first tutors who
teach the staff members indirectly. Basically every professional become successful
when he becomes in good books of his customers by knowing, their needs, demand
and wants. Basically customers are the back bone of every banking organization, so
customers have power even to fail any professional in his carrier.
At the end I am thankful to the following branch staff members,
RANA ISRAR SAHIB (Branch Manager)
Akmal Sahib (Operational Manager)
Sajjad Sahib (BBO Operator: Officer Grade II )
Ramzan Sahib (Head cashier: Officer Grade I)
Dedication
13

To Almighty Allah who has created us as crown of creation and enable us to learn. To my
parents who nurtured me well and inculcated in me the spirit to learn more and more.
To my teachers at all stages of study specially
Who always guided me in right direction, develop personality as a useful citizen for the
society and beyond them, to all of my friends from whom i learned much and to staff of
the bank branch who fully cooperated with me in the completion of my tasks.
Table of Content
14

Chapter # 1
INTRODUCTION.............................................................................................................9
1.1 INTRODUCTION 10
1.2 COMPREHENSIVE DEFINITION 11
1.3 IMPORTANCE OF BANKING 12
Chapter # 2
EVELUATION OF BANKING IN PAKISTAN...........................................................13
2.1 EVOLUTION OF BANKING STRUCTURE 14
2.2 COMMERCIAL BANKING IN PAKISTAN 15
2.3 DIFFERENT PHASES OF BANKING SECTOR 16
Chapter # 3
NATIONAL BANK OF PAKISTAN.............................................................................21
3.1 HISTORY 22
3.2 VISION 23
3.3 MISSION 24
3.4 HIERARCHYLEVEL 25
3.5 HIERARCHY CHART OF NBP 26
3.6 BOARD OF DIRECTORS 27
Chapter # 4
BANKING ACTIVITIES................................................................................................28
4.1 BANKING ACTIVITIES 29
4.2 BRANCH NETWORK 30
4.3 BUSINESS PHILOSOPHY 31
4.4 CORE VALUES 31
4.5 OBJECTIVES 32
Chapter # 5
SCHEMES OF NBP........................................................................................................33
15

5.1 LAUNCHING OF PRESIDENT’S ROZGAR 34
5.2 NBP SAIBAAN HOME FINANCE 37
Chapter # 6
SERVICES OF BANK....................................................................................................38
6.1 DEMAND DRAFTS 39
6.2 SWIFT SYSTEML 39
6.3 LETTERS OF CREDIT 39
6.4 PAY ORDER 40
6.5 MAIL TRANSFERS 40
6.6 FOREIGN REMITTANCES 40
6.7 TRAVELER'S CHEQUES 41
6.8 SHORT TERM INVESTMENTS 41
6.9 NATIONAL INCOME DAILY ACCOUNT (NIDA) 41
6.10 EQUITY INVESTMENTS 42
6.11 COMMERCIAL FINANCE 42
6.12 TRADE FINANCES OTHER BUSINESS LOANS 42
6.13 CORPORATE FINANCE 44
Chapter # 7
PROMOTION..................................................................................................................46
7.1 PROMOTION 47
7.2 ADVERTISING 47
7.3 DIRECT CUSTOMER CONTACTS 47
Chapter # 8
BENEFITS........................................................................................................................48
8.1. BENEFITS PROVIDED FUNDS 49
8.2 APPROVED PROVIDENT FUND SCHEME 49
8.3 MEDICAL ALLOWANCE 49
16

8.4 APPROVED FUNDED GRATUITY SCHEME 49
8.5 INTERNATIONAL ACCOUNTING STANDARD 19 49
8.6 BONUSES / STAFF LOANS 50
8.7 SIMPLE LOAN 50
8.8 HOUSE BUILDING LOAN 50
8.9 CONVEYANCE OR TRANSPORT LOAN 50
8.10 LEAVE FAIR ASSISTANCES AND ITS TYPES 51
Chapter # 9
MANAGERIAL POLICIES...........................................................................................52
9.1 RECRUITMENT POLICY 53
9.2 LENDING POLICY 53
9.3 STAFF DEVELPOMENT POLICY 54
9.4 PROCUREMENT POLICY 54
Chapter # 10
KAMALIA CITY BRANCH OF NBP(347).................................................................55
10.17 GENERAL BANKING DEPARTMENT 56
10.18 SERVICE MEETING REPORT 56
10.19 CUSTOMER COMPLAINT REPORT 57
10.20 ACCOUNT OPENING DEPARTMENT 57
10.21 LIMITED COMPANY 57
10.22 PARTNERSHIP 58
10.23 PROPRIETORSHIP 58
10.24 BAIT-UL-MALL ACCOUNT 59
10.25 PENSION ACCOUNT 59
10.26 REASON FOR CLOSING ACCOUNT 59
10.27 TRANSFER OF ACCOUNT 59
10.28 CHEQUE BOOK ISSUANCE 60
10.29 EXPENSE REGISTER 61
17

10.30 TRANSFER VOUCHERS 61
10.31 MISCELLANEOUS VOUCHERS 61
10.32 FOREIGN EXCHANGE 62
Chapter # 11
RISK FACTORS.............................................................................................................65
11.2 RISK FACTORS 66
Chapter # 12
SWOT ANALYSIS..........................................................................................................67
12.1 SWOT ANALYSIS OF BANKING INDUSTRY 68
12.2 SWOT ANALYSIS OF NBP 70
Chapter # 13
IDENTIFICATION OF PROBLEMS & RECOMMENDATION.............................72
13.4 IDENTIFICATION OF PROBLEMS 73
13.5 RECOMMENDATIONS 74
13.6 CONCLUSION 76
Annxure
Financial Analysis …………………………………………………….. i
A- Ratio Analysis i
B- Vertical Analysis ix
C- Horizontal Analysis xii
18

1.1 - INTRODUCTION
Origin of the word “Bank”
There are many definitions of the word “Bank” even the standard encyclopedia and law
books find it difficult to state exactly what a Bank is? There have been many attempts by
19

different writers to explain the exact significance of the term “Bank”. Here some of the
definitions are quoted as follows.
According to the Banking Companies Ordinance 1962”
Section 5 (b) defines
“Banker means a person transacting the business of accepting, for the purpose of lending
or investment, of deposits from the public, and withdrawal by cheques, drafts, order of
otherwise, and include any post office saving banks”
According to Crowther
”Bank is a dealer of debt, his own and of other people.”
According to Gilbert
“A bank is a dealer in capital or dealer in money. He is an intermediary party between the
borrowers and lenders.”
According to Samulelson
“Commercial banks provide certain services for customers and in return receive
payments from them.”
1.2 - COMPREHENSIVE DEFINITION
“A bank is a financial institution, which deals with money and credit. It accepts deposits
from individuals, firms and companies at a lower rate of interest and gives at a higher rate
of interest to those who need them. The difference between the terms at which it borrows
20

and at which it lends forms the source of its profit. A bank, thus, is a profit earning
institution”
“A bank, [bæŋk] is a business that provides banking services for profit. Traditional
banking services include receiving deposits of money, lending money and processing
transactions. Some banks (called Banks of Issue) issue banknotes as legal tender. Many
banks offer ancillary financial services to make additional profit; for example: selling
insurance products, investment products or stock broking.”
1.3 - IMPORTANCE OF BANKING
Banks play very important role in the economic life of a nation. The growth of the
economy is dependent upon the soundness of its banking system. Although banks do not
create new wealth but borrow, exchange and consume. These make generation of wealth.
In this way they become most effective partners in the development of that country.
To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks
deposit surplus from the public and then advances these surpluses in the form of loans to
the industrialists, agriculturists, businessmen and unemployed people under different
schemes so that they set up their own business. Thus banks help in capital formation.
If there are no banks, then there would be concentration of wealth in few hands and great
portion of wealth of a country would be idle. In the fewer developing countries rate of
saving is very low and due to this, rate of investment and rate of growth is also very low.
We can take bank just like a heart in the economic structure and capital provided by it is
like blood in it. As long as the blood is in circulation, the organs will remain sound and
healthy. If the blood is not provided is not provided to any organ then the organ would
become useless. So if the finance is not provided to agriculture sector or to industrial
sector, it will be destroyed. Loan facility provided by bank works as an incentive to the
producer to increase production. Banks provide transfer of payment facility, which is
cheaper, quicker and safe. Many difficulties in the international payment have been
21

overcome and volume of transactions has been increased. These facilities are very much
helpful for the development of trade and commerce.
22

2.1- EVOLUTION OF BANKING STRUCTURE IN PAKISTAN
23

At the time of independence there were only 487 branches of banks working in Pakistan.
The economy of Pakistan was largely dependent on Indian banks .There were only two
Muslim owned banks in sub-continent. Due to lack of resources and communication
network most of the banks were closed and a no of branches were reduced to 195 in June
1948.
To overcome immediate problems like issuance of currency, exchange control etc. The
reserve bank of India was allowed to act as a central bank of Pakistan. At that time there
were 19 branches of foreign bank working in Pakistan .the government of Pakistan took
over exchange control from reserve bank of India on April 1st
. On July 1st
1948 the state
bank of Pakistan was founded as a central bank of the country and inaugurated by
Quaid –e –Azam. The main reasons of establishment of SBP were:
 To overcome problem of public debt management and exchange control.
 Indian government had with held share of Pakistan amounting to Rs.75 crore.
Right after the formation of SBP , Habib Bank Ltd was encouraged to expand its
branches, National Bank of Pakistan was also established in 1949 .The first
development finance institution was Pakistan industrial and credit investment corporation
which was formed in 1947 to encourage industrial sector in Pakistan.
 In 1959, United Bank Ltd was formed.
 In 1961, Industrial Development of Pakistan was established.
 In 1962, National Investment Trust was formed.
 In 1966, Investment Corporation of Pakistan was established to encourage
investment in the country.
 In 1973, national development Finance Corporation was reestablished for
providing short-term loans.
 On 1st
January 1974, govt. of Pakistan nationalized all banks and were brought
down under these names:
24

 NATIONAL BANK OF PAKISTAN
 HABIB BANK LTD
 ALLIED BANK LTD
 UNITED BANK LTD
 MUSLIM COMMERCIAL BANK LTD
But now the Financial Structure of Pakistan can be broadly categorized into scheduled
Banks and Non-Banking Financial Institutions (NBFIs).There are 13 private commercial
banks, 4 privatized commercial banks, 3 nationalized commercial banks and 21 foreign
banks.
2.2 - COMMERCIAL BANKING IN PAKISTAN
It was very difficult for Pakistan to establish its own banking system immediately after
independence without resources. Following the announcement of the partition plan in
June 1947 there was a haste movement on the part of the banks to transfer their funds and
accounts across the borders. The banks having their registered offices in Pakistan were
transferred to India. In an effort to bring about collapse of the new state by the
persecuting an international policy of withdrawal, the Indian bank offices closed quickly.
Those banks, which stayed, were considering the winding up of their business. By 30th
June 1948 the number of scheduled banks in Pakistan declined from mere scratch.
“Today there is more than 7000 branches of commercial banks along with an established
network of supplementary financial institutions. All this development in the banking
sector is the result of untiring efforts of four decades”
25

2.3 - DIFFERENT PHASES OF BANKING SECTOR IN PAKISTAN
Broadly speaking we can divide the development of commercial banking into 4 phases:
PHASE-1 1947-74 Establishment of commercial banking system
PHASE-2 1974-79 Nationalization of banks
PHASE-3 1979-91 Islamisation process
PHASE-4 1991-2000 Deregulation process
2.3.1 FIRST PHASE (1947-74)
SET UP OF COMMERCIAL BANKING SYSTEM
This was the first phase of developments of Pakistan’s commercial banking system,
which consists of the circumstances under which the development of banking was started
in the country.
INITIAL POSITION OF BANKING IN PAKISTAN
There were 19 non-Indian foreign banks in Pakistan at the time of independence with the
status of small branch network, whose policies and operations were controlled by their
head offices abroad. These banks were solely engaged in export of crops from Pakistan.
There were only two banks in Pakistan at the time of Partition, Habib Bank, which had
transferred its head office from Bombay to Karachi after the announcement of the
partition, and Australian Bank, which has been working in Pakistani territories prior to
June 1947. The government of Pakistan tried hard to eliminate the banking crises.
The imperial bank of India closed down most of its offices in Pakistan, which had been
working as the agent of Reserve Bank of India was not willing to purchase even token
amounts of the government of Pakistan. The Reserve Bank of India was hardly of any
help. It refused to help the govt. of Pakistan with advance argument adhoc securities to
enable them to make essential disbursements such as salaries and other obligations to add
to the difficulties.
The Indian govt. withheld Pakistan’s share of 750 million in cash balances held by her at
the time of independence. The forgoing developments clearly brought home the urgency
of assuming the control and currency in Pakistan and brought to the fore the need to setup
a central banking institution to take the place of reserve bank of India. Therefore it was
26

agreed between the Govt. of India and Pakistan to authority of Pakistan from 30th
September 1947 to 30th
June 1948.
In order to make necessary arrangements of the establishment of the central bank of
Pakistan a committee was appointed to recommend the necessary steps. Consequently
the Governor General of Pakistan and father of the nation Quaid-e-Azam Muhammad Ali
Jinnah inaugurated the state bank of Pakistan of 1st
July 1948. After the SBP order was
promulgated on 12th
May 1948.
When it assumed full control of banking and currency in Pakistan the first important task
before the SBP was to issue of currency notes and withdrawal of reserve bank of India,
which had been in circulating in Pakistan so far.
2.3.2 - SECOND PHASE (1974-79)
NATIONALIZATION OF BANKS
The banking reforms turned out to be a transitional and temporary step and hardly after
18 months had the government nationalized the banking system. Thus through the
Nationalization Bank Act 1974, SBP and all commercial banks incorporated in Pakistan
and carrying on business in or outside the country were brought under the government
ownership with effect from January 1974. The ownership and management of all
Pakistan banks stood transferred and rested in the federal government. The shareholders
were provided compensation in the form of federal government bonds redeemable at par
any time with in a period of fifteen years. The amount of compensation was equal to the
break up value of the shares in case of commercial banks. For the SBP shares the amount
of compensation was estimated on the basis of average of the clearing quotations during
the 6 working days preceding nationalization. The chairman, director and chief executive
of various banks were removed from their offices other than those appointed by the
federal government and the state bank. The central board of banks, managing committees
and similar other bodies were dissolved. A Pakistani banking counsel was established for
nationalized commercial banks to co-ordinate their activities.
27

As a result of merger of banks the following five major banking companies were formed:
 National Bank of Pakistan
 Habib Bank Limited
 United Bank Limited
 Muslim Commercial Bank Limited
 Allied Bank of Pakistan
CAUSES OF NATIONALIZATION
The nationalization of banks may be justified on the following grounds:
 Large business and industrial houses dominate the lending policies of the
commercial banks; this brought forward the problem of concentration of wealth.
 Commercial banking operations were guided by profit motives and as a result the
backward regions and the small entrepreneurs were never been their favorite
customers.
 The operation of banks, unlike after business, have direct implication on the entire
national economy. For instance if the banks raise the cost of their credit, the cost
of every thing may go up.
 Unhealthy complications among banks can lead to financial and economic
problems.
The flow of bank advances towards national priority sector in general is not forthcoming
because private banks are profit oriented.
RESULTS OF NATIONALIZATION
Although there are doubts about the positive results of the nationalization but we can say
that the nationalization of banks provided efficient professional management to expand
banking services in every nook and corner of the country. Banks laid full emphasis on
their lending policies on priority sector and national building projects, which discouraged
non-productive and unhealthy activities like speculation and hoarding, there was also a
recorded increase in the number of foreign branches of Pakistani banks.
The growth of Pakistani banking system was significant. The banking facilities expanded
in the rural areas. The bank credit increased sharply especially in the public sector. A part
28

from this expansion the banking system’s activity seeking to gain credit targets laid down
by National Credit Consultative Counsel (N.C.C.C) and to conform to the priorities over
the year to enlarge the flow of credit for the small banker and agriculturist as well as for
exports. Bank deposits rose very substantially during a period when total monetary assets
also registered a sharp rise. In a remarkable short time banks and their management had
adjusted to the realities and compulsion of the new situation and the system as a whole
was completely geared to government objectives and policies.
2.3.3 - THIRD PHASE (1979-91)
INTRODUCTION OF ISLAMIC BANKING
In 1977 the Bhutto government was toppled. The martial law government planned to
reform the banking sector in a novel way. The overall policy was to Islamize the
economy and the banking system, being based on interest was an important target of the
new policy. The most preferred form of Islamic bank financing profit and loss sharing
would receive banks to receive deposit without guaranteeing any return.
The Islamic bank has to acquire a high degree of confidence of the saver to make him
deposit his money with them not even the return of the principal amount if guaranteed.
The Islamic bank cannot finance the project of an investor merely on the furnishing of
collateral. The bank will have to be a partner in the project. This will require to careful
security of the project and the assessment of risk involved because profits are the function
of the amount of risk in the project. Honesty and trust from both sides of the market are
more important to the system of Islamic Banking.
29

2.3.4 - FOURTH PHASE (1991-to-Present)
PRIVATIZATION AND DE-REGULATION
The government headed by Prime Minister Mr. Nawaz Sharif was not fully satisfied with
the performance of nationalized. The areas, which were severely criticized, were the
falling standard of banking services and common red-tapism. There were complaints
about the services as delay in home remittances, dispatch of cheques, drafts, inefficient
counter services, bad debts of the banks etc. were on sector application for privatization
of other banks namely UBL and HBL were also invited but the bidding response was
quite poor. The privatization of these banks is under consideration. Legislation was
enacted to permit the establishment of new banks and the government approved
10application from the private sector for the grant of commercial bank licenses by SBP,
out of these 9 new banks have since been incorporated. Till March 1994 there were 20
domestic scheduled banks with 9825 branches and 21 foreign banks with 66 branches in
operation in the country. Total assets of domestic scheduled banks amounting to
Rs.1563.73 billion on 30th
March 1996
30

CHAPTER 3
PROFILE OF THE NATIONAL BANK OF PAKISTAN
3.1 HISTORY
National Bank of Pakistan (the Bank) was established on November 9, 1949 under the
National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions
which were developed after trade deadlock with India and devaluation of Indian Rupee in
1949? Initially the Bank was established with the objective to extend credit to the
Agriculture sector. The normal procedure of establishing a banking company under the
Companies Law was set aside and the Bank was established through the promulgation of
an Ordinance due to the crisis situation that had developed with regard to financing of
jute trade. The Bank commenced its operations from November 20, 1949 at six important
jute centers in the then east Pakistan and directed its resources in financing of jute crop.
The Bank’s Karachi and Lahore offices were subsequently opened in December 1949.
The nature of responsibilities of the Bank is different and unique from other Banks /
financial institutions. The Bank acts as the agent to the State Bank of Pakistan for
handling Provincial/Federal Government Receipts and Payments on their behalf.
The Bank has also played an important role in financing the country’s growing trade,
which has expanded through the years as diversification took place. Today the Bank
finances import/export business to the tune of Rs. 52.7 billion, whereas in 1960 financing
under this head was only Rs. 1.54 billion. National Bank of Pakistan maintains its
position as Pakistan's premier bank determined to set higher standards of achievements. It
is the major business partner for the Government of Pakistan with special emphasis on
fostering Pakistan's economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large network of
branches locally, internationally and representative offices.
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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”
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MISSION
Hierarchy level
34
“To be recognized in the
market place by
Institutionalizing a merit &
performance culture,
Creating a powerful &
distinctive brand identity,
Achieving top-tier financial
performance, and
Adopting & living out our
core values.”

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President
Vice President
Executive Vice President
Senior Executive Vice President
Officer Grade I
Officer Grade II
Officer Grade III
Assistant Vice President
Senior Vice President

Hierarchy Chart of NBP
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Head Office
Regional Head Quarter
Branch Branch Branch BranchBranch
Regional Head QuarterRegional Head Quarter
Zonal Office Zonal Office
Corporate Branches Corporate Branches

BOARD OF DIRECTORS
Table 1
NAME DISIGNATION
Syed Ali Raza Chairman & President
Mian Kausar Hameed Director
Ibrar A Mumtaz Director
Tariq Kirmani Director
M Ayub Khan Tarin Director
Mrs. Haniya Shahid Naseem Director
M. Khalid Malik Director
Ekhlaq Ahmed SEVP & Sectorary to BD
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(Source Annual report 2008)
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4.1 - BANKING ACTIVITIES
The Bank is providing all banking services of mercantile and commercial banking
Permissible in the country, which include:
 Handling of treasury transactions for the Government of Pakistan as agent to the
State Bank of Pakistan.
 Providing services under a Trust Deed as Trustee to the National Investment Trust
 (NIT) including safe custody of securities on behalf of NIT.
 Accepting of deposits of money on current, fixed, saving, term deposit and profit
and loss sharing accounts.
 Borrowing money and arranging finance from other banks.
 Advancing and lending money to its clients.
 Financing of projects, including technical assistance, project appraisal through
long-term/ short-term loans, term finance and musharika certificates, etc.
 Buying, selling, dealing, including entering into forward contracts of foreign
exchange.
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 Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc.
 Receiving of bonds, scripts, valuables, etc. for safe custody.
 Carrying on agency business of any description other than managing agent, on
behalf of clients including Government and local authorities.
 Generating, undertaking, promoting, etc. of issue of shares and, bonds, etc.
 Transacting guarantee and indemnity business.
 Undertaking and executing trusts.
 Joint venturing with foreign dealers, agents and companies for its representation
abroad.
 Participating in "World Bank" and "Asian Development Bank's" lines of credit.
 Providing personalized Haj services to intending Hajis
4.2 - BRANCH NETWORK
Presently the Bank is divided into 10 Groups headed by SEVPs / EVPs. Its field
operations are controlled by 9 Regions reporting to as many Regional Chiefs, who control
40 Zones and 15 Single Branch Zones headed by Zonal Chiefs; 12 Corporate branches
and 1,395 domestic branches headed by Branch Managers. With the geographical
development of its branches, the Bank has been able to extend its services to a much
larger number of Pakistanis all over the country. Today it has more than 8.5 million
accounts. Bank maintains its presence in all the major financial centers of the world
through its 23 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. Bank’s role globally is well assisted by its network of correspondent banks
located strategically in Asia, America, Europe and Africa.
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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. Bank has also a presence on the Internet. It has modernized its services by
installing Automated Teller Machines (ATMs) called "CASH LINK" at selected branches
and presently 97 ATMs are operational in major cities.
4.3 - BUSINESS PHILOSOPHY
The Bank is committed to be a sophisticated, prominent and prof
essional institution, providing one window service to its customers. The Bank visualizes
itself as a full service institution catering to the specialized needs of its niche markets.
NBP activities of dedicated banking services to the commercial market segments of the
economy; however, selective focus is primarily covering the provisions also given to the
corporate finance sector.
NBP operating strategy is focused on continuous improvement of internal procedures and
operating systems to ensure a better Control on the quality of its business and operations.
4.4 - CORE VALUES
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We 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.
We shall work to…
 Meet expectations through Market-based solutions and products.
 Reward entrepreneurial efforts.
 Create value for all stakeholders.
We 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.
We 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
4.5 - OBJECTIVES
 Remodeling the bank on the lines of latest global practices.
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 Converting the NBP in to a viable platform for financial success and growth.
 Stabilization of deposit base.
 Origination of new ventures.
 Development of new business plans and consequently to become a bank, which
we can all be proud of.
 All strategies are focused to become a leading consumer bank in Pakistan.
 A bank responsive to the needs of target market customers.
 Delivery of superior services to their stakeholders.
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SCHEMES OF NBP
5.1 - LAUNCHING OF PRESIDENT’S ROZGAR SCHEME BY NBP
The solution of Pakistan’s major socio-economic problems primarily lies in the
development and growth of small & micro businesses. These will not only provide
employment opportunities to ever-growing population demand but will also become the
catalyst for breaking the vicious circle of poverty. In this regard, NBP has developed a
full range of Products under the President’s Rozgar Scheme with a brand name of “NBP
KAROBAR”.
Initially, under the President’s Rozgar scheme, NBP will offer following products:
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 NBP Karobar Utility Store (under a Franchise with Utility Stores
Corporation)
 NBP Karobar Mobile General Store (without USC Franchise)
 NBP Karobar Transport
 NBP Karobar PCO
 NBP Karobar Tele-center
NBP Karobar Utility Store (Under USC Franchise): The product has been designed in
collaboration with “UTILITY STORES CORPORATION OF PAKISTAN (USC)” to
provide financing facility of an average amount of Rs.100, 000/- for a maximum period
of five years with grace period of three months. This is available to all eligible citizens of
Pakistan for setting-up small-scale Retail Outlet or Mobile Utility Store. The USC will
give its franchise to qualifying Pakistani citizens.
Following two financing options are available under this product:
NBP KAROBAR Utility Store (Shop): Financing facility available to set-up a small scale
Retail Outlet (Utility Store in a shop) for purchase of furniture & fixtures. This is also
applicable on payment of security deposit / advance rent under franchise from the USC.
However, stocks will be purchased by the customer.
NBP KAROBAR Mobile Utility Store: Financing facility available to purchase a 2/3
wheeler, 4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) with
attached Loader body (Thehla type) under franchise from the USC to carry utility goods
for retail sale ideally in areas where accessibility to conventional utility stores is difficult.
NBP Karobar Mobile General Store (without USC Franchise): This financing program
has been designed on the similar pattern of Mobile Utility Store. The only difference is
that the borrower will have the liberty of procuring stock/supplies/grocery items from
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open market. Under this product the average loan size of Rs.100, 000/- will be given for a
maximum period of five years with a grace period of three months.
NBP Karobar Transport: The NBP Karobar Transport is designed to finance 2/3 wheeler,
4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) to the eligible
citizens of Pakistan for providing less expensive environment friendly transport facility.
Under this product average loan size of Rs.100, 000/- will be provided for a maximum
period of five years with a grace period of three months.
NBP Karobar PCO: This product is designed to finance setting-up a PCO. NBP will be
providing financing for the purchase of Mobile/Wireless Telephone Set with connection,
Credit Balance. The average amount of financing under this product will be Rs.5,000/-
for a maximum period of two years with a grace period of three months.
NBP Karobar Tele-center: This product is specially designed to finance setting-up a Tele-
center. NBP will be providing financing for the purchase of Mobile/Wireless Telephone
Set with connection, Computer, Printer and Fax machine cum Photocopier etc. to
establish tele-center on a rented shop or owned premises. The average amount of
financing under this product will be Rs.50, 000/- for a maximum period of two years with
a grace period of three months.
The scheme will be offered to eligible young and literate citizens of Pakistan, falling
within an age group of 18-40 years having a minimum qualification of Matriculation
(except for females in the PCO/Tele-center product). The eligible borrowers will be
required to make a down payment of 15%. Asset and Life & Disability insurances will be
mandatory under this scheme. The 15% down payment will include 1st year’s asset
insurance premium. However, the cost of life and disability insurance will be borne by
GoP. The mark-up rate for the 1st year will be 12% and for the subsequent years it will
be 1 year KIBOR + 2%. Fifty percent (50%) of this rate will be paid by the customer i.e.
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6% and the balance of 6% will be borne by GoP. Additionally, first 10% of the losses
under the scheme will be taken-up by GoP.
The scheme is being launched from designated branches of NBP, however, the
application forms will be available in all NBP branches. This scheme is expected to
provide direct and indirect jobs to the tune of approximately 5.4 million Pakistanis. The
launch date of this scheme is 06-09-2006, wherein application form will be available at
all NBP branches throughout Pakistan. The duly filled-in form will be taken back by
NBP starting 13th September, 2006.
NBP is the largest bank of Pakistan with the customer base of over 10 million account
holders. It has the largest borrower base exceeding one million customers and growing.
Compared to the average of its peers, for 2003, NBP was bigger by 53% in asset size,
100% in pre-tax profit, 25% in Return to Assets, 23% on Return on Equity & 114% in
Earning per Share. The pre-tax profit which was Rs. 520 million in 1999 has now
increased to such levels that the ‘Banker’s Magazine’ has declared NBP as the bank with
the highest Return on Capital in Asia and No. 8 in the world. This is not one recognition
by the independent international agencies, the bank was awarded bank of the Year award
for 2001, 2002, 2004 & 2005 by the world renowned ‘The Banker Magazine’. NBP is the
‘Nation’s Bank’ with an international recognition and acclaim in which both the state and
nation can invest their trust and pride.
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5.2 - NBP Saibaan Home Finance
What is NBP Saibaan?
 Home purchase loans up to 10 million
 Home reconstruction loans up to 10 million
 Home improvement loans up to 2.0 million (3 to 15 years)
National Bank of Pakistan (NBP) has announced the launch of a housing scheme to cover
all sections of the society with monthly income starting from as low as Rs. 5000/- per
month. Branded as 'NBP Saibaan' (Housing for all), the scheme offers a maximum loan
of Rs 10 million in accordance with the debt burden criterion. Loans are available for
Home Construction, Home Purchase and Home Improvement. For Home Improvement
Loans the maximum amount is Rs. 2.00 Million.
Home Construction and Home Purchase loans can be repaid over a period of 20 years,
whereas the repayment period for Home Improvement loan is 15 years. The scheme was
launched at a function in Karachi presided over by Mr. Shaukat Aziz, Pakistan's Finance
Minister.
 NBP Saibaan is the most affordable House Financing Scheme.
 You can avail now and repay over a 3 to 20 years period.
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6.1 - DEMAND DRAFTS
If you are looking for a safe, speedy and reliable way to transfer money, you can now
purchase NBP’s Demand Drafts at very reasonable rates. Any person whether an account
holder of the bank or not, can purchase a Demand Draft from a bank branch.
6.2 - SWIFT SYSTEML
The SWIFT system (Society for Worldwide Inter bank Financial Telecommunication)
has been introduced for speedy services in the area of home remittances. The system has
built-in features of computerized test keys, which eliminates the manual application of
tests that often cause delay in the payment of home remittances. The SWIFT Center is
operational at National Bank of Pakistan with a universal access number NBP-APKKA.
All NBP overseas branches and overseas correspondents (over 450) are drawing
remittances through SWIFT.
Using the NBP network of branches, you can safely and speedily transfer money for our
business and personal needs.
6.3 - LETTERS OF CREDIT
NBP is committed to offering its business customers the widest range of options in the
area of money transfer. If you are a commercial enterprise then our Letter of Credit
service is just what you are looking for. With competitive rates, security, and ease of
transaction, NBP Letters of Credit are the best way to do your business transactions.
6.4 - PAY ORDER
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NBP provides another reason to transfer your money using our facilities. Our pay orders
are a secure and easy way to move your money from one place to another. And, as usual,
our charges for this service are extremely competitive.
a. Issuance of Pay order
1. For NBP Account Holder Rs. 50/- (Flat)
2. For NBP Non-Account Holder Rs. 100/- (Flat)
Rs. 25/- (Flat) from student for
payment of fee favoring educational
institution
b. Issuance of duplicate Pay order
1. For NBP Account Holder Rs. 100/- (Flat)
2. For NBP Non-Account Holder Rs. 150/- (Flat)
6.5 - MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And we also
offer the most competitive rates in the market.
6.6 - FOREIGN REMITTANCES
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan
has taken a number of measures to:
Increase home remittances through the banking system
Meet the SBP directives/instructions for timely and prompt delivery of remittances to the
beneficiaries
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New Features
The existing system of home remittances has been revised/significantly improved and
well-trained field functionaries are posted to provide efficient and reliable home
remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides
Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia.
 Zero Tariffs: NBP is providing home remittance services without any charges.
 Strict monitoring of the system is done to ensure the highest possible security.
Special courier services are hired for expeditious delivery of home remittances to the
beneficiaries.
6.7 - TRAVELER'S CHEQUES
Negotiability Pak Rupees Traveler’s Cheques are a negotiable instrument
Validity There is no restriction on the period of validity
Availability At 700 branches of NBP all over the country
Encashment At all 400 branches of NBP
Safety NBP Traveler’s Cheques are the safest way to carry our money
6.8 - SHORT TERM INVESTMENTS
NBP now offers excellent rates of profit on all its short term investment accounts.
Whether you are looking to invest for 3 months or 1 year, NBP’s rates of profit are
extremely attractive, along with the security and service only NBP can provide.
6.9 - National Income Daily Account (NIDA)
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The scheme was launched in December 1995 to attract corporate customers. It is a
current account scheme and is part of the profit and loss system of accounts in operation
throughout the country.
6.10 - EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its economic base and
restore investor confidence. The bank is now regarded as the most active and dominant
player in the development of the stock market.
NBP is involved in the following:
 Investment into the capital market
 Introduction of capital market accounts (under process)
NBP’s involvement in capital markets is expected to increase its earnings, which would
result in better returns offered to account holders.
6.11 - COMMERCIAL FINANCE
Let us help make your dreams become a reality. Our dedicated team of professionals
truly understands the needs of professionals, agriculturists, large and small business and
other segments of the economy. They are the customer’s best resource in making NBP’s
products and services work for them.
6.12 - TRADE FINANCES OTHER BUSINESS LOANS
Agricultural Finance
NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers
who produce some of the best agricultural products in the World.
Agricultural Finance Services
“I Feed the World” program, a new product, is introduced by NBP with the aim to help
farmers maximize the per acre production with minimum of required input. Select farms
will be made role models for other farms and farmers to follow, thus helping farmers
across Pakistan to increase production.
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Agricultural Credit
The agricultural financing strategy of NBP is aimed at three main objectives:-
 Providing reliable infrastructure for agricultural customers
 Help farmers utilize funds efficiently to further develop and achieve better
production
 Provide farmers an integrated package of credit with supplies of essential inputs,
technical knowledge, and supervision of farming.
Agricultural Credit (Medium Term)
 Production and development
 Watercourse improvement
 Wells
 Farm power
 Development loans for tea plantation
 Fencing
 Solar energy
 Equipment for sprinklers
Farm Credit
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NBP also provides the following subsidized with ranges of 3 months to 1 year on a
renewal basis.
 Operating loans
 Land improvement loans
 Equipment loans for purchase of tractors, farm implements or any other
equipment
 Livestock loans for the purchase, care, and feeding of livestock
Production Loans
Production loans are meant for basic inputs of the farm and are short term in nature.
Seeds, fertilizers, sprayers, etc are all covered under this scheme.
6.13 - CORPORATE FINANCE
Working Capital and Short Term Loans
NBP specializes in providing Project Finance – Export Refinance to exporters – Pre-
shipment and Post-shipment financing to exporters – Running finance – Cash Finance –
Small Finance – Discounting & Bills Purchased – Export Bills Purchased / Pre-
shipment / Post Shipment Agricultural Production Loans
Medium term loans and Capital Expenditure Financing
NBP provides financing for its clients’ capital expenditure and other long-term
investment needs. By sharing the risk associated with such long-term investments, NBP
expedites clients’ attempt to upgrade and expand their operation thereby making possible
the fulfillment of our clients’ vision. This type of long term financing proves the bank’s
belief in its client's capabilities, and its commitment to the country.
Loan Structuring and Syndication
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National Bank’s leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. Because we
understand our syndicate partners’ asset criteria, we help borrowers meet substantial
financing needs by enabling them to reach the banks most interested in lending to their
particular industry, geographic location and structure through syndicated debt offerings.
Our syndication capabilities are complemented by our own capital strength and by
industry teams, who bring specialized knowledge to the structure of a transaction.
Cash Management Services
With National Bank’s Cash Management Services (in process of being set up), the
customer’s sales collection will be channeled through vast network of NBP branched
spread across the country. This will enable the customer to manage their company’s total
financial position right from your desktop computer. They will also be able to take
advantage of our outstanding range of payment, ejection, liquidity and investment
services.
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7.1ROMOTION
Modern marketing calls for more than developing a good product, pricing it attractively
and making it accessible. Banks must also communicate with present and potential
stakeholders, and general public. For most banks, the question is not whether to
communicate but rather what to say, to whom, and how often. Due to high competition
banks have to pay attention on their promotion and marketing channels. These are
 Advertising
 Sales promotion
 Direct marketing
NBP is also paying attention on its marketing because of heavy competition in banking
sector. Those banks progress that effectively manage not only “how can they reach their
customers”? But also “how can their customers reach them”?
ADVERTISING
It is a paid form of non-personal presentation and promotion of ideas, services or
products. It includes different modes such as Print& broadcasts, ADs, motion pictures,
broachers & booklets, posters &leaflets, billboards, display signs, symbols and logos etc.
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It is a paid form of non-personal presentation and promotion of ideas, services or
products. It includes different modes such as Print& broadcasts, ADs, motion pictures,
broachers & booklets, posters &leaflets, billboards, display signs, symbols and logos etc.
DIRECT CUSTOMER CONTACTS
The keystone to bank marketing is the customer’s impression when he enters the bank. It
is a warm and friendly place described in advertisement or by marketing representatives.
NBP has spent sizable sum to improve their facilities and to make them more attractive. It
provides a modern banking image of friendliness and community participation.
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8.1 - BENEFITS PROVIDED FUNDS TO THE EMPLOYEES
NBP considers its employees as a ladder of its success. It takes care of their employee
that is why employees also work hard and it is clear that now its profitability is
increasing.
8.2 - APPROVED PROVIDENT FUND SCHEME
NBP is operating an approved provident fund scheme for all its permanent employees.
Equal monthly contributions are made, both by the bank and its employees, to the fund
@8.33% of the basic salary of the employees.
8.3 - MEDICAL ALLOWANCE
The bank also provides medical allowance to its permanent employees. It is given on
reimbursement basis.
 Rs. 20,000 p.a is given in case of married employees but having no children.
 Rs.30, 000 p.a is given in case of married employees having kids also.
 Rs. 10,000 p.a allowance is given in case of unmarried employees.
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Basic salaries are provided in case of hospitalization and if employee himself or any of
his spouse, kids and his widow mother is hospitalized.
8.4 - APPROVED FUNDED GRATUITY SCHEME
NBP operates an approved funded gratuity scheme for all its permanent employees.
Contributions are made in accordance with the actuarial recommendations; the valuation
was carried out using the Projected Unit Credit Method in line with the requirements of
8.5 - International Accounting Standard 19, Employees Benefit
Provision is made annually to cover obligation under the scheme. Gratuity accruing to
staff is equal to one basic salary for each year completed of service. Payment of gratuity
is as follows: Where Completed Year of Service is:
 Less than three years Nil
 Three years 60% of gratuity amount
 Four years 80% of gratuity amount
 Five years 100% of gratuity amount
 In case of death, payment of gratuity is
 ]Based on completed years of service 100% of gratuity amount
8.6 - BONUSES / STAFF LOANS
Bonuses are also given to permanent employees on their performance basis. In case of
very good performance 2 basic salaries are given and in any other case 1 basic salary
are provided as bonus.
8.7 - SIMPLE LOAN
Simple loans are also provided to permanent employees by the NBP. Three basic salaries
are provided as loan and it is for a period of three years. So loan is payable in 36 equal
installments including markup. Markup is calculated according to the formula. When an
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employee adjusts this loan then after 2 months of this loan repayment employee again
becomes eligible for clean loan.
8.8 - HOUSE BUILDING LOAN
This loan is also provided to permanent employees. The amount of this loan should be
repaid in 25 years because retirement limit. The rate of markup is 3% and loan amount is
also insured by bank so it proves to be a big facilities and relief for the dependents of the
deceased employee.
8.9 - CONVEYANCE OR TRANSPORT LOAN
This loan is also provided to permanent employees by NBP. The loan amount should be
repaid in 7 years or in 84 equal installments and markup is 4% in case of loan for car and
in case of loan for motorbike markup rate is 5%.
Total installments after aggregating all the loan installments should not exceed 33% of
the employee’s take home salary.
8.10 - LEAVE FAIR ASSISTANCES AND ITS TYPES
3 Types of LFA are
 CASUAL LEAVES 4 leaves are allowed to permanent employees.
 SICK LEAVES 12 leaves are allowed to permanent employees.
 PRIVILEGE LEAVES 15-30 leaves are allowed to permanent employees.
Employee entitlements to annual leave are recognized when they accrue to employees. A
provision is made for estimated liability for annual leave as a result of Services rendered
by the employee against un-availed leaves up to the date of balance sheet.
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MANAGERIAL POLICIES
9.1 - RECRUITMENT POLICY
For recruitment or selection of employees they give Ads in newspapers and conduct the
tests in which they check the IQ level of candidate, after that they conduct the interviews
of selected candidates.
9.2 - LENDING POLICY
While providing lending services NBP follows Prudential Regulations issued by State
Bank of Pakistan
NBP does not provide financing facility in any form of a sum exceeding Rs. 100,000/- to
any one individual or person without obtaining realizable securities of the value not
below the outstanding amount.
While granting any accommodation NBP ensures that the total accommodation availed
by any borrower from Banks does not exceed 10 times of the capital and reserves of the
borrower as disclosed in its audited accounts.
Fresh/ additional accommodation in the form of long-term debts is provided on the basis
of a debt equity ration not exceeding 60:40.
When considering proposals for fund based/ non-fund based accommodation NBP gives
due weight age to credit report relating to the borrower and his group obtained from
Credit Information Department of the State Bank.
The total outstanding financing facilities by NBP to any single person do not at any point
of time exceed 30% of NBP unimpaired capital and reserves subject to the condition that
the maximum outstanding against fund based financing facilities do not exceed 20% of
the unimpaired capital and reserves.
Counteragent liabilities of NBP do not exceed at any point of time 10 times of its paid up
capital and general reserves.
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While making lending decisions employees of NBP make 5C’s analysis i.e. they consider
following factors:
1. Character
2. Capacity
3. Capital
4. Condition
5. Collateral
9.3 - STAFF DEVELPOMENT POLICY
Employees are the key of success for any organization and their training is also necessary
in order to compete with other banks. NBP is not paying so much attention towards
employees training. Mostly staff training includes:
Job training: A senior employee or manager gives the training to the new or junior
employees. In this method the employee learns how to perform and allowed doing the job
under the supervision of manager/senior trainers.
Job rotation: It is a form of job training. In job rotation the employees learn different
jobs within a department and have to spend and perform on each of these jobs for a
specified period. It also has an advantage what if any member is absent in one of unit,
and then other members can perform that job.
9.4 - PROCUREMENT POLICY
The main function of the bank is receiving money and lending it for generating profits.
The main source of NBP is deposits and then it allocates its deposits to the borrowers
following the certain regulations in order to secure the amount. Because this is actually
the customer’s money that bank has lent so after proper checks and investigation amount
is lent.
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KAMALIA CITY BRANCH NBP (347)
10.1 - General Banking Department
I spent almost one week in the customer relationship department but there were very few
things to learn. Most of the time I had to sit idles. Then I experienced that it is the most
difficult task to sit idle. The basic purpose of this department is to serve the customers.
The CRO has to deal the customers. He has to solve their problems and if they have any
complaints he has to cool them down and clarify them.
Work I performed in the customer relationship department
 Guiding the customers and providing them the required information.
 Filling the slips and cheques of the customers on their request.
 Keep watching that customers are standing in a proper queue.
 Receiving the phone calls and transferring the calls to the respective person and
noting down the messages.
 Trying to solve the problems of the customers.
In that department I also studied following files
 Circulars report
 Service meeting report
 Customer Complaint report
 Mystery shopping report
10.2 - SERVICE MEETING REPORT
Once in a month, it was compulsory of holding one meeting known as service meeting
report. All the employees are bound to attend the meeting.
This report is actually the summary of the service meeting and in this report.
 All the issues discussed are recorded.
 Problems discussed by the employees
 Solutions discussed and presented
 Suggestions given by the employees
67

10.3 - CUSTOMER COMPLAINT REPORT
In this report if customers have any complaint to any of the staff member is recorded. I
am working under the head of Mr. Akmal (Grade I officer). He is the person who opens
the new accounts and issuing the Cheque books. First two days he explain me how to
open a new account and what kind of documents required for this. And also explain how
to issue the new cheque books and what kind of procedure necessary followed for this.
On third day I found that this branch have a big number of client because all Pakistan air
force, Army, Cantonment board, PTCL get salary, Pension funds, Bait ul mall fund from
this branch and all utilities bills and property tax are paid here.
So my operational manager assigns me duties and gives responsibility of opening new
account and issue check books. I check the all details that are necessary for this and
performed all procedures after that my head.
10.4 - ACCOUNT OPENING DEPARTMENT
Before opening an account in National Bank of Pakistan, a person must have a reference.
If not then that person must give some sort of guarantee whether by company or from
somewhere else. Walk-in customers are not catered. They strongly believe in KNOW
YOUR CUSTOMER. After fulfilling this requirement the account holder is asked to
present his NIC, make the copy of that NIC and return it back. I used to fill in the
Account opening form and the information of the account opener. After having filled by
my self, the account opener signs on back of the form, write his/her name and date.
10.5 LIMITED COMPANY
In this case, company has to submit some documents for bank requirement without that
bank will not proceed further. The documents that are required by the bank for opening
the account are;
 Copy of Certificate of Incorporation.
 Memorandum & Article of Association.
 List of directors.
 Copy of Board of Commencement of Business (If required).
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 Copies of NIC of Directors.
 Power of Attorney/Mandate (If required).
Without submitting these documents bank will not proceed for account opening because
this is in the policy of bank.
10.6 - PARTNERSHIP
Company has to submit some documents for bank requirement without that bank will not
proceed further but documents which are required by the bank for opening the account
will be differ not all but some which are;
 Partnership Deed.
 NIC Photocopies of all partners.
 Partnership Mandate.
 Power of Attorney/Mandate (If required).
 Attested copy of registration Certificate with registrar of Firms.
 Original Authority letter of Partners favoring persons authorized to
 Operate the account.
10.7 - PROPRIETORSHIP
Individual has to submit some documents for bank requirement without that bank will not
proceed further but documents which are required by the bank for opening the account
will be differ not all but some which are;
 Copy of NIC.
 Completed Specimen Signature Card.
 Power of Attorney.
 Declaration of Proprietorship.
 Government service card
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10.8 - Bait-ul-Mall Account
In this we open account of disable, old, and widow’s people with amount of 10 Rs. And
the document needed is ID card, introducer ID card, letter from zakat committee.
10.9 - Pension Account
In this we open account of retired people with amount of 100 Rs. And the document
needed is ID card, introducer ID card, copy of pension book
10.10 - REASON FOR CLOSING THE CUSTOMER’S ACCOUNT
The banker may close the account of the customer due to following reasons:
 Notice by a Customer
 Death of a Customer
 Customer’s Insolvency
 Customer’s Insanity
 By order of court
PROCEDURE
For the closing of an account, the account holder has to fill in the account closing form.
In that form account holder makes request to the bank for account closing that includes
are:
 Date
 Account number
 Account holder’s name
 Closing date
 Reason of closing
 Signature
 In case of closing account bank will charge Rs. 250.
10.11 - Transfer of Account
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When government servant (PAF, ARMY, PTCL) transfer from one place to another they
need to give application to manager in which they request for transfer the account where
they needed. And when the account details are received in required branch, they call to
account holder and again sign the signature card.
10.12 - CHEQUE BOOK ISSUENCE
After receiving the cheque book requisition I take out a cheque book according to the
requirement. Then I noted down the date, serial number, account holder name, account
number, amount deducted from his account in a register named “cheque book issuance
Register”
Date Name Account
Number
Amount
Debited
Serial no. of cheque book
NBP have a special policy they issues cheque books to its employ free of cost. After
noting the information in a register a stamped the entire cheque book leaves containing
the account number of the account holder. Then I filled the requisition in the cheque book
writing the account number, account title, serial number of cheque book.
Another interesting work which I perform in this department is that just to make a phone
call to those account holders whose cheque book is in present in the bank but they are not
coming to collect it. Before cheque book is presented to the account holder cheque book
issuance is registered. Cheque book issuance register includes:
 Date
 Cheque book number
 Account holder’s name
 Account number
 Date
 Initials
 Remarks
I separate all those requisitions and carefully scrutinize them and criteria were:
Account number, account title, Number of cheque books required and it should also
mention that how many leaves cheque book is required because 50 leaves cheque book
bank charge Rs. 150 for that and 25 leaves cheque book Rs. 75 is charged. The
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authorized officer had duly signed it. On the backside accountholder signature and the
bearer signatures are present.
10.13 - Expense Register
 I also prepared some vouchers for the payment of internal expenses e.g. payment
of charges for going to the NIFT (National Institutional Facilitation Technology);
photocopy charges. And in these vouchers I filled the columns of branch code,
currency code, date, amount, nature and detail of the expense, account to be
debited for charging the expense.
 Then I place those vouchers in the register and date, number of debit vouchers,
branch code columns were filled by me.
1`0.14 - Transfer vouchers
I segregated all the pay order of request for transfer of funds, credit vouchers,
intercity Cheques
 I check them that these were properly filled and signed.
 Then I arrange all those according to the account number.
 I place those in the register and branch code, date, and number of debit and credit
vouchers columns was filled.
10.15 -Miscellaneous vouchers
 I segregate all the tax deduction vouchers, foreign exchange deal papers, debit
vouchers.
 Arrange them according to number.
 Place them in the jacket and fill the columns.
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10.16- FOREIGN EXCHANGE / REMITTANCES DEPARTMENT
Remittance department I perform following functions:
 Mail Transfer (MT)
 Telegraphic Transfer (TT)
 Demand Drafts (DD)
 Pay order (PO)
FOREIGN DEMAND DRAFT
Foreign Demand Draft is just like demand draft. The only difference is that a bank issues
FDD to the bank of another country. It requires foreign exchange and it involves seven
forms, which are to be filled. For foreign DD you must have a account in NBP, otherwise
you cannot use this facility and account was open by foreign exchange department and
the initial amount is required is $ 1000. If you want a foreign DD with the amount of
greater than $5000 and in your account you did not have this balance before and you
deposit the on spot. Bank will be 1% of total amount of DD + services charges Rs. 600.
DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from customers. Following type
of deposits are offered by NBP:
 Current deposit
 Saving bank deposit
 Profit and loss saving account
 Fixed deposit
 Foreign currency deposit
73

Current Deposits
In the type of account the client is allowed to deposit or withdraw money as and when he
likes. He may, thus, deposit or with draw several times in the day if he likes. Usually the
bank allows this and service chargers are deducted by the bank and current deposit
account.
Saving Bank Deposits
This type of account is for those persons who want to make small savings. This type of
account is opened with Rs. 500. In this case deposits can be made only up to a costing
amount and with drawls are allowed twice a week. If the depositors wants to withdraw
more than Rs. 15000 a seven days notices is required before the withdrawal.
Profit and Loss sharing Deposits
These types of accounts are one step towards the Islamization of Banking system in the
Pakistan. Under such types of accounts the bank allows no interest to the customers. The
executive board of the bank declares profit or loss every year. PLS saving account having
a running minimum credit balance of Rs. 500 would be eligible for sharing profit/loss of
the bank. The rate of profit or loss on PLS saving accounts shall be determined by the
bank at the close of each half year, in its sole discretion and the banks decisions shall be
final and binding on the PLS account holder.
Fixed Deposits
In the type of account a certain amount is deposited for a certain, period such as six-
month, two years or longer. A fix deposit receipts is issued in the same of the depositor.
The officer in charge and the bank manager sign the receipt. A notice is given to the
depositor requesting the depositor to withdraw his money or to renew this deposit. The
interest allowed on fixed varies with the period for which the deposits are made.
74

Foreign Currency Accounts
Foreign currency account is opened by depositing foreign currency. In NBP, you can
open foreign currency account in:
 US DOLLAR
 POUND STERLING
 JAPANESE YEN
 DEUTSCHE
BOOKS RELATING TO CUSTOMERS
 Pay-in-slip
When money is to be deposited in the bank the pay in slip is to be filled. The object of
this book is to provide the customer with the bank’s acknowledgement for receipt of
money to be credited his account. For deposit of cash green slip is used and for cheques
red slip is used.
 Cheque Book
A cheque book contains a number of cheques, which is given to a customer upon written
request and after marking the payment for the cheque book. It enables a customer to
make withdrawal from his account or make payment to various parties by issue of
cheques.
75

11.1 - RISK FACTORS
The management wishes to highlight the following major risk factors, which may affect
the profitability of the Bank:
 Liquidity Risk
The ALCO/Treasury Management Group monitors the maintenance of Balance Sheet
Liquidity Ratios, depositor’s concentration both in terms of overall funding mix and
avoidance of undue reliance on large individual deposits and liquidity contingencies plan.
 Credit risk and concentration of credit risk
Credit risk is managed in terms of lending policy, approved by the Board of Directors and
other laid down procedures outlined in the Bank Book of Instructions and related
Circulars. Where possible, all loans and advances are secured by acceptable form of
collateral to mitigate credit risk.
 Currency risk
77

The Bank's foreign exchange exposure comprises of forward contracts, purchases of
foreign bills, foreign currency cash in hand, balances with banks abroad, foreign currency
placements with SBP and foreign currency assets and liabilities. The net open position
and the nostro balances are managed within the statutory limits, as fixed by the SBP.
Counterparties limits are also fixed to limit risk concentration.
 Interest / Mark-up rate risk
The Bank is exposed to interest / mark-up rate risk as a result of mismatches or gaps in
the amount of interest / mark-up based assets and liabilities and off-balance sheet
financial instruments that mature or re-price in a given period. The Bank is not
excessively exposed to interest / mark-up risk as its assets and liabilities are re-priced
frequently.
78

12.1– SWOT ANALYSIS OF BANKING INDUSTRY
STRENGTHS
Dealings
Management of banks regards customer as an asset and same is reflected in the attitude of
the staff towards the customers. This has helped the banks in attracting leading business
concerns.
Real Time Online Banking
The service of real time online banking to its customer’s. This facility is not being offered
by many of the banks at present. You can do any banking online.
Prime Location
The location of the banks has an important role to play in the success. Its all branches
located in the area surrounded by all the big business markets.
WEAKNESSES
Low Penetration
Banks has total of limited branches in cities. Network of branches, in small cities is small
as compared to its competitors.
Right People Are Not At Right Job
In many banks merit policy is not followed by the employer for the recruitment and
nepotism exits.
Training Department
There are no separate training institutes for the fresh employees; most of the times on the
job training are preferred.
80

Marketing
In today’s world, any business concern not going for the promotion of the business may
not be able to keep its footing strong. This is one area where Banks needs to emphasize.
Bureaucratic power
References are based on facts and were necessary to convey an important point: that the
Operations and Administration are the two key areas of bureaucratic power that touches
the life of each and every individual employee in the organization, and if these two
departments are run by egotistical and power-hungry executives they can ruin an
organization as we have witnessed in numerous public sector corporations in Pakistan.
OPPORTUNITIES
Marketing
At present, bank is not very much marketing its business, so in order to get more share
of the market; it cans opportunities for marketing its business.
Expansion of the Business
As the banks has a small network of branches, in small cities like Sialkot, Gujranwala,
Faisalabad which are industrial cities, it can go for opening new branches at these places
where it is likely to get customers.
THREATS
Privatization and Private Banking
The recent privatization of nationalized banks show a serious threat to the existing bank
in private sector .As we know that in nationalized sector there were five major banks
namely HBL, UBL, MCB and MBP. These banks and other private banks FAISAL, AL-
FALAH, ASKARI etc are trying very hard to attract the customers and their profits are
also increasing .These big banks pose threat to other banks in two ways:
81

 They are improving their working efficiency and qualities of services .They are
offering attractive schemes and high return on deposit schemes.
 Network and set up of these banks is growing swiftly. This can severally affect
the business of other banks.
12.2 - SWOT ANALYSIS OF NATIONAL BANK OF PAKISTAN
STRENGTHS
Market Recognition
For the third consecutive year, NBP was recognized as the best bank in Pakistan by the
prestigious periodical, “The Banker" UK (a subsidiary of Financial Times Group).
Furthermore M/s JCR-VIS Credit Rating Company Limited maintained its rating of
AAA, while the standalone rating was raised by one notch to AA-, which is one of the
highest in the banking sector.
Dealings
Management of National Bank of Pakistan regards customer as an asset and same is
reflected in the attitude of the staff towards the customers. This has helped the bank in
attracting leading business concerns.
Location
The location of the bank has an important role to play in the success. Its all branches
located in the area surrounded by all the big business markets.
Nominal Charges
The charges offered by the bank are very nominal. Where the other banks charge in
thousands NBP charges in hundreds.
Modification of Technology
This is going towards bring technologies like ATM. Advance computer system in their
branches.
82

WEAKNESSES
Marketing
In today’s world, any business concern not going for the promotion of the business may
not be able to keep its footing strong. This is one area where NBP needs to emphasize
upon,
Online Banking
National bank do not have online systems, in present era everyone rush for the use of
online banking so it was major weakness of NBP, but it does not effect on the
performance of bank.
OPPORTUNITIES
Marketing
At present, NBP is not very much marketing its business, so in order to get more share of
the market; it can option for marketing its business.
Government Policies
With the coming of new government, the economic and industrial reforms brought into
the country seem promising .As government is facilitated the outside investors , so the
people within and outside the country are much more interested in investments .So now
is the time to avail the opportunity. This opportunity attracts the investors.
THREATS
Privatization and Private Banking
The recent privatization of nationalized banks show a serious threat to the existing bank
in private sector .As we know that in nationalized sector there were five major banks
namely HBL, UBL, MCB and NBP. These banks and other private banks FAISAL, AL-
FALAH, ASKARI etc are trying very hard to attract the customers and their profits are
also increasing
83

13.1 IDENTIFICATION OF PLAUSIBLE PROBLEMS / ISSUES
85

 More burden on individuals worker
 Manual work
 More responsibilities on one person e.g. all bill of utilities paid on one counter
 One cashier for receiving and payment
 ATM machines not wok properly
 Limited training of employee
 The NBP President talked of “change” and “problems with public sector banks”
But he did not articulate a clear vision, a mission statement, or a strategic plan to
achieve that vision. Without being given a vision by the Board, the corporate leader
had no clear mission or a strategy to achieve that undefined mission.
 The physical environment of the branches is still as unwelcome as it was before.
 The provision of services and the speed of disposal of customer business (cash
dispensation, cheque clearance, bills payment, or provision of loans) are as slow, as
customer unfriendly, and as bureaucratic as ever.
 The plan to separate the business from the administrative and operational work
seemed good at first sight, but its fruits could not be achieved because the
Operations Division was not interested in efficiency and customer service.
 Jobs are given to “preferred candidates” who were loyal to the Operations Chief.
 Web of informers had now been officially created with no improvement in
productivity but with additional expense for the bank – an expense that the bank
was trying to reduce.
 Computer facilities and internet connections were delayed and denied by the
Operations Group and all sorts of roadblocks were created for those newly hired.
 References are based on facts and were necessary to convey an important point:
that the Operations and Administration are the two key areas of bureaucratic power
that touches the life of each and every individual employee in the organization, and
if these two departments are run by egotistical and power-hungry executives they
can ruin an organization as we have witnessed in numerous public sector
corporations in Pakistan.
86

13.2– RECOMMENDATIONS
National Bank of Pakistan is a well known and successful financial institution in the
banking sector, it is said, nothing is perfect in the world, and there is always space for
deficiencies. I would like to suggest some recommendations for the deficiencies which I
have found during my internship.
 Separate counters must be set up to give the facility of bills collection of all
utilities like WAPDA, SUI GAS, and TELEPHONE.
 There should be separate cashiers for the Receipts & Payments in the each branch
office.
 Bank branches must be beautified internally and externally by providing
appropriate interior decoration. Just like new private banks.
 The bank should develop healthy relationships with the renowned banks of the ark
in order to expand its operations globally.
 The individual efficiency of worthy employees should be rewarded in the form of
proper increments and promotion in grades.
 Although the ATM of the NBP is linked with other banks machines as well
without the payment of charges, but during my internship I found that it was often
that the people did complaints about the failure of the machines about every day.
 Every year some of the employees should be sent for training to other countries
and employees from other branches should be brought here. Some more reading
material should be provided. The purpose should be to educate the employees
with the advance studies in their field.
 One and the most important thing are online banking.
 In urban areas banks going to modified but at rural areas they are in very bad
condition and following conservative ways to operate banks so like it suggestions
are recommended here.
87

 There should be separate training center for the fresh employees and for
development of new employees.
 Merit policy should be adopted for deserving people to giving employment.
 National Bank of Pakistan is a learning organization so the students should be
sent to the National Bank of Pakistan for internship in future.
 Department should contact the regional head, branch bankers for the internship of
students. This will facilitate the students as well as the department.
 The NBP should have the management accountability structure.
 CEOs should be evaluated on whether they have been successful in instituting
true and sustainable “culture change” by empowering their staff and by breaking
the back of bureaucracy.
 The banks should also be asked about the management decisions taken to improve
“customer orientation” and what evidence can they provide in favor of customer
satisfaction.
 CEOs should also be asked to provide a cost benefit analysis of their training and
development expenditures.
88

13.3- CONCLUSION
This internship report includes the performance and working activities of the National
Bank of Pakistan. It has the complete but not last profile and overview of banking sector
in the Pakistan that how much this has contribution in the economy and development of
banking sector in new era. Then there is profile of the NBP that includes the history and
evolution. There is the performance and daily services and products of the banking sector
with their offerings and overview of NBP services to make their operations carry on. It
has information that all the departments are performing in this regard and SWOT analysis
of overall banking sector of Pakistan. There is SWOT analysis of NBP is carried out with
the lot of problem identification. Recommendations are suggested to solve certain
problems. This report has many reasons of lowering down the banking sector in Pakistan
that must be removed in this regard to attract more investments in this way to become the
more profitable. In Pakistan private banks are raising due to their customer services
policies, training employees, strategies and technology. In urban areas banks going to
modified but at rural areas they are in very bad condition and following conservative
ways to operate banks so like it suggestions are recommended here.
89

BIBLIOGRAPHY
 http://www.nbp.com.pk/
 http://www.jang.com.pk/thenews/investors/aug2005/ref.htm
 http://uoit.ca/sas/LeadershipFailures-AnjumSiddiquifinaldraft.pdf
 http://books.google.com/books?
hl=en&lr=&id=pLGGcnNCwBcC&oi=fnd&pg=PR9&sig=hfpaPNQMYzrbA_uv
6gx6bNnFmgQ&dq=History+of+Banking+sector&prev=http://scholar.google.co
m/scholar%3Fq%3DHistory%2Bof%2BBanking%2Bsector%26hl%3Den%26lr
%3D#PRA1-PA28,M1
 http://en.wikipedia.org/wiki/History_of_banking
 History of Money and Banking in the United States by Murray N. Rothbard. Full
text (510 pages) in pdf format
 Rothbard, Murray N. / Richardson & Snyder. 1983. The Mystery of Banking Full
177-page text in pdf format.
 Retrieved from "http://en.wikipedia.org/wiki/History_of_banking"
 http://www.businessplus.tv/Programme/pdf/Banks%20-%20Most%20Profitable
%20Sector.pdf
 http://www.answers.com/topic/national-bank-of-pakistan
 http://www.sbp.org.pk/publications/index.asp
 http://www.pak.gov.pk/
90

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