CHAPTER 2

HISTORY & BACKGROUND OF BANK

DEFINITION OF BANK
Collins English dictionary defines bank as an institution offering certain financial
services, such as the safe keeping of money, conversion of domestic into foreign
currencies, lending of money at interest.
1
According to Gilbert, ank is a dealer in capital or more peculiarly in money. !e is an
intermediate party bet"een lenders and borro"ers#
$he definition laid do"n in the banking companies act 1%&# s bankers means a person,
transacting the business of accepting for the purpose offending or investment of deposits
of money from the public, repayable on demand or other"ise and "ithdra" able by
che'ues, drafts or orders or other"ise and includes any post office saving bank
(here as banking company means any company, "hich transacts the business of banking
in )akistan.
*n end the bank is an institution "hich deals in money its dra" surplus money form the
people "ho are not using it at the time and lend to those "ho are a position to use it for
productive purposes.
Evolution of Bankin!
$here are various vie"s about the origin of the "orld banking. *t has not so for been
decided as to ho" the "ord +bank, originated some authors opines that this "ord is
derived from the "ords ancus or an'ues, "hich means a bench. $he other point of
vie" is that it has originated from German "ord back "hich means a -oint .tock firm,
later on, "hen the Germans occupied ma/or part of *taly, the "ord +back, "as *talianated
in +ank, According to Gro"ther the present day banker has three ancestors, the
merchants, the gold smiths and money lenders.
FUNCTIONS OF BANK"
According to section 0 of the C1, 1%&#, the banks in )akistan are authori2ed to engage
in any one or more of the follo"ing forms of business, namely3
$he borro"ing, raising or taking up of money4
$he lending or advancing of money either upon or "ithout security4
$he dra"ing, making, accepting, discounting, buying, selling, collecting
and dealing in bills of e5change, promissory notes, drafts, bills
of lading "arrants, debentures 6musharika and mudaraba certificates74
$he granting and issuing of letters of credit, travelers, che'ue and circular notes4
$he buying and selling of foreign e5change including foreign bank notes4
$he ac'uiring, holding, issuing on commission, under"riting and dealing in stock fund,
share debenture stock, bonds, obligations, securities4
$he receiving of all kinds of bonds, scripts or valuables on deposit or for safe custody or
other"ise, the providing of safe deposit vaults, the collecting and transmitting of money
and securities.
Acting as agents for any government or local authority or any other person or persons4
Acting as 8udaraba company under the provisions of the 8udaraba Companies
1rdinance 1%9:4
Contracting for public and private loans and negotiating and issuing the same4
$he effecting, insuring, guaranteeing, under"riting, participating in managing and
carrying out of any issue, public and private, government, municipal, or other loans or of
shares, stock, debentures or debenture stock
of any company, corporation or association and the lending of money for the purpose of
any such issue4
Carrying on and transacting every kind of guarantee and indemnity business4
#.; anking in )akistan.
#
(hen )akistan came into being 1;
th
August 1%;0, being a ne"ly born country, it "as
very difficult for to run its o"n banking system immediately. $herefore in accordance
"ith the provision of *ndian independence act of 1%;0, an e5pert committee "as
appointed to study the issue. $he committee recommended that the <eserve bank
of *ndia should continue to function in )akistan until =:
th
september 1%;9, so that the
problems of time and demand liability, coinage, and currencies e5change act.e settled
bet"een *ndia and)akistan. *t "as also stipulated than )akistan "ould take over the
management of public debt and e5change control from reserve bank of *ndia on 1
st
April,
1%;9, and that *ndian notes "ould continue to be legal tender in )akistan till
=:
th
.eptember, 1%;9. >ollo"ing the announcement of independence plan in -une 1%;0,
the !indus residing in the territories no" comprising )akistan started transferring their
assets to *ndia. 8oreover the banks including those having their restarted offices
in )akistan transferred them to *ndia in order to bring a collapse of the ne" .tate. y
=:
th
-une 1%;9, the number of offices of scheduled banks in )akistan declined from ;90
to only 1%?.
$here "ere 1% non@*ndian foreign banks "ith the status of small branch offices "ith "ere
engaged solely in e5port of corps from )akistan, "hile there "ere only # )akistani
institutions !abib bank and the Australasia ank. $he panic of uncertain future shook the
confidence of the people. $he Government, therefore, promulgated the banking
companies ordinance, 1%;0, to safeguard the interests of both the bankers and the
customers.
*n order to make necessary arrangements for the assumption of control an e5port
committee "as appointed to recommend necessary steps, including the re'uired
legislation to establish a central bank for )akistan. $he Governor@General of )akistan,
Auaid@*@A2am 8ohammad Ali -innah, inaugurated the state bank of )akistan on -uly
1,1%;9. $he first important task "hich the state bank of )akistan had to attend to "as the
issue to currency notes and "ithdra"al of <eserve bank of *ndia note "ith over printing
there of Government of )akistan, "hich had been in circulation in )akistan so far.
eing the central bank of the country, the state bank addressed itself "ith the e'ually
urgent task of creating a notional banking system. in order to attain this goal it provided
every help and encouragement to !abib bank to e5pand its net"ork of branches and also
recommended to Government to establishment of a ne" bank, "hich could serve an agent
of the sate bank. As a result the national bank of )akistan came into being in 1%;%4 and
by 1%?# it became strong enough to take over the agency function form the imperial bank
of*ndia.
*n order to develop send banking and "eeding out "eed institutions, the banking
companies 6control7 act "as promulgated in 1%;%, empo"ering the state bank to control
the operation of banking companies in )akistan, including preparation of the re'uired
trained manpo"er. >urther the state bank restricted the opening of no" branches by
foreign banks in port to"ns or in big cities from "here trade "as being carried out "ith
foreign countries, "hile pakisyani banks "ere allo"ed to open as many as possible "ithin
the country.
)akistan entered into a phase of planned economic development in 1%?&4 and naturally
further e5pansion in the banking and credit facilities "as essential. $hough there had
been a remarkable e5pansion in the number of offices of )akistani banks since
independence, it has remained heavily concentrated in large cities. $herefore the state
bank had to accord priority to the establishment of branches in the interior of the county.
Another very significant event in the development of banking in )akistan "as the
appointment of the credit en'uiry commission in 1%?% to e5amine the scope and "orking
of the institutions providing credit facilities to agriculture, trade, commerce, and industry,
and recommend measures of further improvements. 8ore )akistani scheduled banks
continued to be established, "hich included the commerce bank limited and the standard
bank limited. y -une 1%&?, the number of scheduled banks stood at =&4 the deposits
increased to <s.&99.#9 crores, "hile credit e5pansion by the banks to the private sector
rose to <s.?0?.90 crores due to keen demand under the impact of ecomics gro"th and
better scope for private enterprises.
$he separation of East )akistan in 1%01 and it,s repercussions in the from of economic
depression4 demoneti2ations of currency in 1%0#4 and the rampant "orld@"ide inflation
have caused a lot of difficulties to the banking system in )akistan. Bet the gro"th of
banking in )akistan since 1%;9 has indeed been phenomenal. $he net"ork of not only
)akistani but also the foreign banks covers a very large segment of popuation in very
nook and corner of the country. $hey mobili2e the savings and other funds from public in
general and finance various sector of economy from this pool. 8ore than 0::: branches
of these banks have mobili2ed more than <s.990 billion in deposits and provided finance
to various sectors amounting to more than <s.?;9 billion by -une 1%%0.
esides this gro"th, speciali2ed credit and financial institutions have also developed over
the years, and cater to the needs of specific sectors. Cational investment trust4 peoples
finance corporation4 e'uity participation fund4 and national development finance
corporation4 baner,s e'uity Dtd., small business finance corporation etc. are contributing
their due share in the country,s economic life.
*n the hope that banking "ould enter a ne" era of further development and progress,
)akistani commercial banks "ere nationali2ed in )akistan since -anuary 1, 1%0;, but it
has no" been reali2ed that this step proved to be counter productive, hence reversal has
been initiated since -anuary 1%%1. esides disinvestments and privati2ation of
nationali2ed commercial banks, establishment of commercial and other banks in private
sector is being encouraged. Conse'uently a large number of commercial and other banks
have come into operation since 1%%1.
The Bank of Khyber (Internship report)
Chapter-3
CHAPTER
$ HISTORY
OF THE BANK OF KHYBER
$he ank of Ehyber is one such bank, "hich came into being after the passing of
a <esolution in the )rovincial Assembly of C(>) in 1%%1. $he focus point for the
establishment of this bank is to provide employment opportunities for the man po"er of
this province F to provide financial assistance to the people of C(>), "ho are engaged
in small, medium and large scale businesses. 8ost of the nationali2ed commercial banks
have their !ead 1ffices in provinces other than C(>), "hich is the main hindrance to
availing loan in time from these banks. $he banks have to take formal approval from their
!G1 in order to advance loans to their customer or to make some transactions "ithin the
branches. $herefore, it "as felt that there "as a great need to have a bank "hich has its
!ead 1ffice in the same province also, so that there could be no time delay,
communication gap or provisioning of documents to advance loans e5peditiously.
*nitially, the ank of Ehyber had agency arrangements "ith AD and 8C for clearing
and collecting che'ues from other banks, but "ith the grace of Almighty Allah and the
hard "ork of its management, it became a scheduled bank. *t started its operation in .)
and to have a clearing officer of its o"n for clearing purposes and tackling of other
matters "ith .). )resently, this bank has started to "ork as an agent for all its branches
in )esha"ar and other cities "here .) arrangements are not possible. *n 1%%?, the 1k
availed an opportunity for a >oreign E5change license and its corporate main branch
became the first authori2ed dealer to deal in foreign e5change business and trade
servicesGfinance. Co", other than its branches in the C(>), the ank of Ehyber has its
net"ork of branches in *slamabad, Dahore, Earachi and 8u2affarabad also.
$he ank is providing loans to private as "ell as public sector organi2ations, not only for
the prosperity of the people but also for the development of C(>). *n this "ay, /ob
opportunities surface in different sectors, mainly for the people of C(>), "hich may
help the country get out of the clutches of unemployment and related poverty problems.
esides, the <unning >inance F Hemand >inance facilities, it has also started loaning for
small clusters, "hich has a separate controlling department called the 8icro >inance
Hepartment. 8>H has been introduced to cover the businesses, "hich are on a small
scale either in the shape of shops, small pro/ects or home@ level pro/ects of ladies, like
embroidery, beauty parlours F stitching centres. $his level of loans may be advanced to
customers, after they provide t"o guarantors to $he 1k.
$he .) has recently allo"ed the opening of banks and branches based on a pure *slamic
anking .ystem in the country. >or the said purpose an *slamic anking Hepartment has
been established by the .) to provide necessary guidance to the banks and concerned
staff. $hey have also instructed all the banks to introduce necessary steps for promotion
of *slamic banking. *n pursuance of the .) instructions an *slamic anking Hivision has
been established by the ank of Ehyber to evaluate and implement policy and procedural
matters to cater to the *slamic banking demand of our valued customers. $he recruitment
of suitable staff for *slamic banking operations and their necessary training arrangements
are under process.
BRANCH NET%ORK
1. 8ain
branch

#. Iniversity road
=. *slamic ranch !ayatabad
;. G.$. <oad
?. .adder road branch
&. Civil .ecretariat ranch
0. Ehyber a2ar ranch
9. Ashraf <oad ranch
%. Eohat branch
1:. H.*.Ehan ranch
11. Abbottabad ranch
1#. *slamic ranch annu
1=. 8ardan ranch
1;. Co"shera ranch
1?. Chitral ranch
1&. 8ingora ranch
10. !attar ranch
19. 8ansehra ranch
1%. !angu ranch
#:. !aripur ranch
#1. Charsada ranch
##. $ank ranch
#=. $imergara ranch
#;. 8u22afarabad ranch
#?. Dahore ranch
#&. *slamabad ranch
#0. Earachi 1 ranch
#9. Earachi # ranch
#%. *slamic ranch Auetta
BOARD OF DIRECTORS
8r. Dai' .hah 6Chairman7
8r. Jia@ur@<ehman 6Hirector7
8r. Ghulam Hastgir Akhtar 6Hirector7
Hr. 8uhammad Jubair Ehan 6Hirector7
8r. 8uhammad Asif 6Hirector7
)rof. 8uhammad shakir siddi'ue 6Hirector7
.yed *'bal Ashraf 6 8anaging Hirector7
8r. $uran Caglayan 6Hirector7
8r. Aa2i 8uner ul !a' 6Acting 8anaging Hirector7

ORGANISATION STRUCTURE OF BOK
ORGANISATION STRUCTURE
1rgani2ation is a formali2ed intentional structure of roles or positions.
$he essence is that the people "ho are structured and coordinated "ill definitely be
"orking in a proper system. $his system includes both organi2ational hierarchy and
organi2ational chart.
ORGANI&ATION HIERARCHY
$o avoid the conflicts in the organi2ation, all organi2ation positions are detailed
described and the duties, goals, functions, responsibility and authority at each position are
made crystal clear.
$he channels "hich delegates these activities are called organi2ation hierarchy
and this must be set in such a manner to best accomplish the organi2ational goals.
$he bank of Ehyber ultimate governing body is the board of directors "hile the day to
day affairs of the bank are managed by a managing director appointed by the board of
directors for a term of three years on contract "ith the consent of the Government of
C(>). Inder the supervision of 8H there are EK),s the senior most officials in the
bank hierarchy each heading a bank unit. After EK) there are .K),s and K),. heading
their respective divisions and departments.
At the branch net"ork of 1E there are branch managers and assistant branch
managers there are branch departmental heads responsible for their respective branch
department.
T'( no)(n*latu+( of va+iou, -o,t,"
$he nomenclature of various posts in the bank is as under3
E5ecutive Kice )resident
.enior Kice )resident
Kice )resident
Assistant Kice )resident
1fficer Grade@*
1fficer Grade@**
1fficer grade@***
-unior officer
Hriver

O+ani.ation C'a+t
$he organi2ation chart merely sho"s that ho" the departments are tied together
"ith the principal line of authority. $here are several types of organi2ational charts and
structures, each having its merits and demerits.
$he ank of Ehyber has an organi2ational chart prescribed by the 1H and modified
from time to time ad/ust the changes in the bank occurring due to gro"th, environment,
competition and technology. $he ne" organi2ational chart recently promulgated divides
the bank into ; units. Each unit headed by an EK). $hese ; units are further divided into
& divisions and each headed by a senior vice president.
$he 0 divisions are further divided into #: departments, each headed by a departmental
head of K) or AK) rank. $he audit division "ill "ork independently directly under the
control of 8H and headed by an .K) and further divided into t"o departments.
The Bank of Khyber (Internship report)
Chapter-4
CHAPTER #
DEPART/ENTATION
Hepartmentation is the logical process of grouping of activities, or the process of
grouping /obs in a logical arrangement through "hich the organi2ational goals or
ob/ectives can be achieved. *t is also the process of division of "ork into various sections
or departments or divisions, over "hich a manager has authority F responsibility for
performance of specified activities. asically there are four "ays for organi2ational
departmentation.
1
i7 Hepartmentation by function
ii7 Hepartmentation by product
iii7 Hepartmentation by geography
iv7 Hepartmentation by customer
$he departmentation in $he 1E has been done purely on functional basis, in the
follo"ing manner3
DEPART/ENTATION AT HEAD OFFICE 0E1E0
$he 1E,s !G1 is located in )esha"ar, and it has complete control over
administrative matters and operations as "ell as other areas of the 1E.
P(+,onn(l2 T+ainin & E,ta3li,')(nt Divi,ion
$his division performs the follo"ing tasks3
<ecruitment F .election
$raining
.upervision
)ostings
)romotion
Deave F other staff matters
8otivation
$ermination
While the Establishment Division deals with procurement, repair/renovation and disposal of
real assets of the bank, the purchases are made against demands of various departments
through open bidding. The contracts are given to an agency, which provides the best quality
products at competitive rates and the delivery is made according to schedule. f the asset is
depreciated according to the set percentage and it is no longer feasible to use it, then the
asset is disposed of through an open auction.
$he Establishment Hivision deals "ith buildings, furnitureGfi5tures, vehicles, computers
and many other items, "hich are related to the bank or its staff.
Bankin O-(+ation, Divi,ion
$his division constitutes3
$eller,s 1peration
Cash 8anagement
<emittances
ills
Advances
Consolidation F .tatements
!a// 1peration
.pecial Heposit .chemes
$ravellers Che'ues, Credit Cards etc.
T+(a,u+4 Divi,ion
$reasury Hivision is involved in investments in the shares market, bonds,
debentures, placement of funds F reconciliation of Costro accounts 6>oreign Currency
Accounts maintained in foreign countries in respective currencies7. $he settlement of
trade finances, in"ard and out"ard remittances, through Costro accounts is made
possible by the treasury division.
Au5it & In,-(*tion Divi,ion
$his division is kno"n as the eyes and ears of the top e5ecutives of the bank .*t
keeps them informed of any contravention of bank regulations by any branchGdepartment
or the staff and also proposes remedial measures to set it right. *n the 1E there are three
types of Auditing, i.e. *nternal Audit, E5ternal Audit and .) Audit.
*nternal Auditors are assigned to make comprehensive audit on yearly basis of all
branches. A separate team of Audit Hivision is deputed to make sure the compliance of
all irregularities, pointed out during their inspection.
$he oard of Hirectors of $he 1E has appointed E5ternal Auditors for comprehensive
audit of all branches on yearly basis. $he 1H of $he 1E has to appoint any Chartered
Accountants from the approved list of $he .). .ince they are e5ternal auditors and
approved for .), therefore they prepare all the financial statements of $he 1E.
.ince .) is the central bank of the country and it has a right to carefully monitor all the
activities of all banks, therefore they also conduct their audit in $he 1E on a yearly
basis. *n case, any bank violates )rudential <ules F <egulations of the .), .)
reserves the right to peneli2e such banks. *n case of any ma/or violation, they may
dissolve the management of any bank. $he compliance of irregularities are made sure by
them as "ell.

C+(5it Divi,ion
$his division is engaged in providing >und ased F Con >und ased facilities to
customers of different branches. $hey receive proposals F recommendation from their
branches along "ith application re'uests of their customers. $hen they prepare aggregate
proposals for further submission to the Credit Committee, "here these proposals are
discussed thoroughly and final decisions are made by the competent authority. $hey
sanction loans proposals and for"ard the same to relevant branches "ith instructions to
retain proper security, offered by the customer and retain all legal documents to safe
guard the bank,s position. Any activity related to facilities may also be altered by this
division.
Co)-ut(+ D(-a+t)(nt
$he 1E has appointed some 'ualified soft"are and hard"are engineers in $he
1E *$ department. $he senior most is deputed as *n@charge of the *$ department.
.oft"are engineersGprogrammers are not only responsible for application development in
$he 1E, to fulfill re'uirements of the bank, but also act like trouble shooters, "hereas,
installation of the hard"are in the branch set up is the responsibility of hard"are
engineers. *n each branch, they have assigned a systems administrator to look after /obs
related to the computing system. )roper trainings have been provided to system
administrator in this effect.
/i*+o Finan*( Divi,ion
$he operations of the 8icro >inance department at the branch level are "atched
carefully by this division. 8>H is e5clusively designed to approve loans on a small scale
to small units like, toy shops, garment shops, and stitching centers run by "omen.

Pu3li* R(lation, D(-a+t)(nt
*t establishes a liaison bet"een public sector organi2ations and corporate
customers "ith the bank on behalf of the management of the bank.
Int(+national Bankin D(-a+t)(nt
$his department carefully looks after the business transactions and activities of all
the branches "hich are authori2ed in the >oreign E5change usiness, like $rade .ervices
and >inances, >oreign Currency Accounts, <emittances, $ravelers Che'ues issuance and
>1C 6>oreign out"ards ills for Collection7. $he details "ill be discussed in analyses
section of the report.
I,la)i* Bankin Divi,ion
$his division looks after )D. banking and other *slamic modes of financing. $his
department does research in *slamic banking and conducts training courses for the staff.
Con,u)(+ Finan*( D(-a+t)(nt
$his department facilitates the common masses in getting all kinds of electrical
house holds items, like televisions, micro"aves, ovens, air conditioners, tape machines,
music systems F refrigerators. $his facility may be allo"ed against a personal guarantee
of a single individual.
/a+k(tin D(-a+t)(nt
anks are a"are of the fact that marketing and advertising are very important for the
healthy gro"th of all organi2ations including banks. Advertisements are meant to get the
attention of a segment of the society "hich is the bank,s target. $his is done through the
follo"ing3
Ce"s papersGperiodicalG/ournals.
<adio F $.K
1ut door boardsGsign boards
Gifts "ith the bank,s name printed on them like key chains or "all clocks.
.
THE BANK OF KHYBER /INGORA BRANCH O1ER1IE%
INTRODUCTION
8ingora branch is one of the important branches of 1E. ecause it is one of the richest
districts in C@(.>.). *t performs all the function of the commercial bank, from deposits
to advances, remittances etc.$he site of the branch is very suitable4 it is in the middle of
t"ins cities 8ingora and .aidu .harif...
uilding of the branch is not too big to accommodate the staff and clients
comfortably. !o"ever, the branch 8anager 8r.8ehboob@ur@<ehman and the other staff
are so active that they deal the clients efficiently, politely, and in a congenial
atmosphere. Huring the internship period in the branch, they gave me too much respect
and guidance to learn more in the field of banking, general correspondence, and customer
dealing.
CONTENTS

..Co $itle )age Co
)reface
Ackno"ledgement
$able of contents
Dist of tables
E5ecutive .ummery
PART67 8INTRODUCTION9
CHAPTER :7 INTRODUCTION OF
STUDY
1.1 *ntroduction 1
1.# )urpose of the study #
1.=
1.;
.cope of the study
1b/ectives of the study
#
#
1.?
1.&
Dimitations of the study
enefits of the study
=
=
1.0 <esearch 8ethodology =
1.9 .cheme of the study ;
PART62 8RE1IE%9
CHAPTER : 2 INTRODUCTION OF THE
ORGANI&ATION
#.1 Hefinition of anks ?
#.# !istory of C) &
#.#.1
#.#.#
Cationali2ation in 1%0;
Challenges and ne" initiatives in 1%%:@#::?
0
0
#.= Kision .tatement 9
#.; 8ission statement 9
#.? 1b/ectives of the bank 9
#.?.1 8a5imum profit 9
#.?.# Good administration 9
#.?.= Customer service %
#.?.; Hevelopments %
#.?.? E5penditure discipline %
#.?.& Jonal inspection %
#.?.0 8a5imum utili2ation of staff %
#.&
#.0
<ole of bank in economic development
oard of Hirectors
%
1#
#.9 8anagement 1#
#.% 8anagement of C) 1=
#.1: Cet"ork of branches 1?
#.11 1b/ectives of C) 1?
#.1# *ncrease in deposits 1?
#.1= E5tension of loan 1?
#.1; >unctions of C) 1&
#.1;.1 Accepting Heposit 1&
#.1;.#
#.1;.=
Hiscounting bills of e5change
Agency service
10
10
#.1? Inmatched banking facilities 1%
#.1& .ummation 1%
CHAPTER : $ DEPART/ENTA0I&ATION OF NBP
=.1 *ntroduction #:
=.# Hemand Hrafts #:
=.= ."ift .ystem #:
=.; Detters 1f Credit #:
=.? $ravelers Che'ues #1
=.& )ay order #1
=.0 8ail $ransfers #1
=.9 >oreign <emittances #1
=.% .hort $erm *nvestments ##
=.1: Cational income daily account ##
=.11 E'uity *nvestments #=
=.1# Commercial >inance #=
=.1= $rade >inance And 1ther usiness Doans #;
=.1; *nternational anking #0
=.1? C) 1ffers #0
6A7 HE)A<$8EC$A$*1C 1> C) #:
=.1& Cash Hepartment #%
=.10 Clearance Hepartment =#
=.19 Advances Hepartment ==
=.1% <emittance Hepartment =%
=.#: !uman <esource 8anagement ;1
=.#1 Heposit Hepartment ;=
=.## >oreign E5change Hepartment ;0
7 HE)A<$8EC$A$*1C 1> C) EA<AE C*$B
<ACC!.
=.#= Cash Hepartment ;9
=.#; General anking ;9
=.#;.1 <emittances Hepartment ;%
=.#;.# Advances Hepartment ;%
=.#;.= Clearing Hepartment ;%
=.#;.; Computer Hepartment ?:
=.#;.? Establishment Hepartment ?:
=.#;.& Government Hepartment ?1
=.#? .ummation ?1
CHAPTER : # FINANCIA0 POSITION OF NBP
;.1 alance of C) as at Hec =1,#::; F #::? ?#
;.# )rofit and loss at the end of Hec =1, #::; F #::? ?=
;.= Cash flo" statement at the end of Hec =1, #::; F
#::?
??
;.; .tatement of changes in 1"ner E'uity at the end of
Hec =1, #::; F #::?
?0
CHAPTER : ; FINANCIA0 ANA0YSIS
?.1 )ercent Analysis of balance sheet as at Hec =1, #::? ?9
?.# )ercent Analysis of profit and loss at the end of Hec
=1, #::?
&:
?.= Kertical Analysis of balance sheet as at Hec =1,#::? &#
?.; Kertical Analysis of profit and loss at the end of Hec
=1,#::?
&=
?.? !ori2ental Analysis balance sheet at Hec =1,#::? &?
?.& !ori2ental Analysis of profit and loss at the end of Hec
=1,#::?
&&
?.0 <atio Analysis &9
CHAPTER : < S%OT ANA0YSIS OF NBP KARAK CITY BRANCH
&.1 *ntroduction 0:
&.# .trengths 01
&.= (eaknesses 0#
&.; 1pportunities 0;
&.? $hreats 0;
&.& Competitive analysis 0?
&.0 .ummation 00
CHAPTER : = CRITICA0 ANA0YSIS OF NBP KARAK CITY
BRANCH
0.1 *ntroduction 09
0.# )roblem at the ranch 09
0.= >unctional analysis 0%
0.; Administrative analysis 9:
0.? !<8 analysis 9#
0.& .ummation 9;
RECO//ENDATIONS AND I/P0I/ENTATION P0AN
CHAPTER: > FINDIDNGS AND RECO//ENDATIONS
9.1 *ntroduction 9?
9.# )rofessional $raining 9?
9.= Helegation of authority 9&
9.; )erformance Appraisal 9&
9.? $o overcome problem 9&
9.& $ransfer 9&
9.0 Changes in policies 9&
9.9 .Ceed of 'ualified staff 90
9.% Itility ill Charges 90
9.1: Dink (ith $he !ead Auarter 90
9.11 Credit Card 90
9.1# *nstalling validator and A$8 90
9.1= *nterest 1n 1ver Hraft 99
9.1; Clean Doans 99
9.1? Cash >inancing 99
9.1& Hecreasing Administrative E5penses 99
9.10 Ceed $o e >le5ible *n Credit )olicy 99
9.19 $echnological Advancement 9%
9.1% .taff <elationship 9%
9.#: *mproper Histribution 1f (ork 9%
9.#1 >avoritism and Cepotism %:
9.## *nterdepartmental $ransfer %:
9.#= 8arketing )olicy %:
9.#; Complaints 1f Customer %:
9.#? Analysis of the business %1
9.#& 1rgani2ational Commitment %1
9.#0 8anagerial Deadership %1
9.#9 Credit monitering %1
9.#% E5tended banking hours %1
9.=: !ousing loans %#
9.=1 Avoiding ad Hebts %#
9.=# *mplementation plan %#
9.== Action implementation plan cost %=
9.=; .ummation %;
0i,t of -(+,on int(+vi(?(5 %?
Bi3lio+a-'4 %&
D*.$ 1> $ADE
CHAPTER NO CONTENTS PAGE NO
C!A)$E< C1 # oard of directors 1#
C!A)$E< C1 # .enior 8anagement C) 1=
C!A)$E< C1 ; alance .heet at Hecember =1
st
, #::; F #::? ?#
C!A)$E< C1 ; )rofit and loss Account for the year ended
Hecember =1
st
, #::; F #::?
?=
C!A)$E< C1 ; Cash flo" statement for the year ended Hecember
=1
st
, #::; F #::?
??
C!A)$E< C1 ; .tatement of changes in E'uity for the year ended
Hecember =1
st
, #::; F #::?
?0
C!A)$E< C1 ? )ercent Analysis of alance .heet Hecember as at
=1
st
, #::?
?9
C!A)$E< C1 ? )ercent Analysis of profit and loss statement at the
end of =1
st
, #::?
&:
C!A)$E< C1 ? Kertical analysis of alance .heet as at =1
st
, #::? &#
C!A)$E< C1 ? Kertical analysis of profit and loss statement at the
end of =1
st
, #::?
&=
C!A)$E< C1 ? !ori2ontal analysis of alance .heet as at =1
st
, #::? &?
C!A)$E< C1 ? !ori2ontal analysis of profit and loss statement at
the end of =1
st
, #::?
&&
C!A)$E< C1 ? <atio analysis
E@ECUTI1E SU//ARY

$his report highlights the operations and functions of bank. anks acts as financial agents
to their customer4 in return they get re"ard for their services. anks play important role
in development of society. A strong economy must have a good banking system.
Cational ank of )akistan is one of the leading banks in )akistan. According to
international standards of banking system, it is one of the best banks in .outh Asian
region as "ell as the bank, "hich is, come the top ten in the "orld. $his report e5plains
ho" different functions of C) "orks and "hat are their services.
$he report relies mainly upon secondary data "ith the use of primary data at instances
"hen the former "ould be unclear or difficult to comprehend. $he first part of the report
is about the evolution of banks, "here as the second part is about the functions and
services of C) and in third part the financial analysis, ."ot analysis and
recommendations are given.
Huring the critical analysis, it "as observed that C) is one of the leading commercial
banks of )akistan "ith a net"ork of around 1#;# branches all over )akistan. C)
provides a "ide variety of products and accounts that suit the lifestyle and needs of the
masses .*n fact commercial banking is regarded as a Conservative business because the
re"ards are modest and the penalties of bad banking are many. As a trustee of the public
funds, C) has a greater responsibility for safety and prudence. 8any business can en/oy
some slack in their affairs, commercial banks cannot afford this, since commercial banks
must make a living by putting the money at their disposal to "ork, they are faced "ith the
problem of making a living "ithout /eopardi2ing the safety of their institution and C) is
doing all this very efficiently. $he C) is kno"n for its customer services as "ell as for
its products, "hich are in demand.