INTERNSHIP REPORT ON

NATIONAL BANK OF PAKISTAN

RASOOL NAGAR BRANCH 1981

Internship Report submitted to the Faculty of Management and
Administrative Sciences in Partial Fulfillment of the Requirement for the
Degree of Masters of Business Administration.

Masters of Business Administration (MBA evening 2011-2015)

UNIVERSITY OF GUJRAT
Date of submission:

12, 8,

2013

Name of Program Coordinator

Signature of program coordinator

Acknowledgement

__________________
__________________

IN

THE

NAME

OF

ALLAH,

THE

MOST

MERCIFUL,

THE

MOST

BENEFICENT
In the very first I would like to bend my head in front of ALLAH ALMIGHTY, Who
straight me in every phase of my life, and made me capable to accomplish the
most excellent and helped me to face difficulty during my internship of getting
professional education.
I am very grateful to everyone who helped me in my report as it is necessary part
of the Master in Business Administration because perhaps, I would not be
capable to write such report without their help and collaboration. I extremely
thankful to the Teachers of University of Gujrat who gave me the chance to do
my work practically, due to which I obtained a good knowledge and skills of
practical life and work.
Especially I am incredibly thankful to the Operational Manager of NBP Service
industries Branch, Mr. Mukhtar butt who prepared my internship plan and he
structured it in such a way that adequate time was given in every department
according to its significance. Besides I appreciate the staff of service industries
branch of NBP, who gives me all information about the departments where I
moved.
I am very appreciative to my family and my sweet friends for their help, prayers,
love, support and their assurance in my skills. The completion of my report is the
effect of their collaboration and ethical support. Without their co-operation and
support, a report like this is complicated at best.

Table of Contents
1 Executive Summary of the Internship

Page

Part-I
Main Body of Report
1
1
2
3

Introduction
Objective of Study the organization
Scope of Studies:
Research Methodology:

7
7
8
9

2. Overview of the organization

2.1Brief history

10

2.2 Nature of the organization

12

2.3 Business volume, reward honors & success stories of NBP during
Last 5 years

13

2.4 Product lines and services

15

2.5 PEST analysis

23

2.6 Contribution of NBP towards economic

26

3 Organizational structures
3.1 Organizational Hierarchy chart

27

3.2 Number of employees

28

3.3 Main offices

28

3.4 Introduction of all departments

31

3.5 Comments on the organizational structure

33

Part-II
4 Internee work
4.1 Brief Introduction of NBP rasoolnagar branch
4.2 Details of Supervisors

35
38

Page

4.3 Detailed Description of the Departments where I worked &

39

Weekly timetables

40

4.4 Summary of learning

55

4.4.1 Skills and Qualifications that I have gained from the Internship

55

4.4.2 Responsibilities that I have undertaken during my internship period

56

4.4.3 Influence of internship on my future career plan

57

4.4.4 Correlation of classroom knowledge with internship activities

57

5. Conclusions of the report

58

5.1 General Observations about the sector in which my internship

Institution operates

60

5.2 SWOT analysis of NBP Bank limited

62

6. Recommendations

64

References..66

Executive Summary
The position of a bank in financial system of an economy can be considered as a
heart in living creatures. Just like heart pumps blood stream to whole body, a
bank in similar way mobilizes the resources of an economy to their most
productive usage. Soft and proficient working of an economy depends widely on

Page

sound banking infrastructure. Hence a better understanding of the key functions

performed at banks can help in creating favorable future prospects.
This internship report contains an account of the activities performed,
experiences and observations recorded while being at one of the branches of
NBP, namely National Bank of Pakistan rasoolnagar branch. Special endeavor
has been made to outline the basic operations carried out at the most of NBP
branches, the kind of milieu provided therein, overall structure of the
organization, and the strengths, weaknesses, opportunities, and threats
underlying the existing setup of NBP.
The report broadly comprises of two main sections. The first portion of the report
encompasses detailed introduction and overview of National Bank of Pakistan,
along with details of its structure with a texture of personal comments,
contribution that NBP is making in Pakistans economy.
In the second portion of the report the details of the activities actually carried out
by me at NBP rasoolnagar branch, are set out. This section entails the details of
activities accomplished in Clearing, Remittances, Account Opening, EBS,
Government and Advances Department, and then a summary of learning is also
listed. In this section answers have been given regarding the skills and
qualifications that were earned as a result of internship course. Further the
influence of internship program upon future career selection has been
mentioned, along with the comments on the relevancy of material taught at the
campus and the actual tasks and responsibilities undertaken during the
internship program.
The last section of the report implies a summary of conclusion driven from the
Internship

experience,

general

observation

about

the

sector

and

the

recommendations for the improvement in existing NBPs infrastructure. This

section also implies references and annexure.

Page

Part 1
1. Introduction
It is a brief introduction of internship report, why I done internship in National
Bank of Pakistan. Because it was requirement of my MBA program and to get the
experience how to work in practical life, how we deal and behave with related
people. And after that I have done it to increase my knowledge which has gained

Page

from the books to increase my confidence. There is also includes Objectives of

studying the organization, an outline of the scope, purpose of internship and the
methodology through which I learned also discussed.

1.1

Objective of Study the organization:

The main reason of this internship is to completion of the requirements for the
degree of MBA program. For this connection each student of these particular
courses is compulsory to carry out training in an appropriate organization chosen
by them, for a period of 6 weeks.
The secondary objective of this job is to realize how the academic knowledge
can be useful to the practical situations and look at an organizations financial
matters and recognize its opportunities or problems and also recommend
corrective procedures. This internship is also very essential to get confidence
and become aware of the method of an organization. As an internee I want to
achieve following objectives during my internship and organization study:
To make known with a business organization.
To familiarize with the different departments in the organization and their
functioning.
To enable myself to understand how the key business process are carried
out in organization.
To relate theory with practice. I was also keen to gain professional
experience in an actual testing environment.
I want to develop my skills in the application of theory to practical work
situations, to develop my attitude conducive to effective interpersonal
relationships and to develop my interpersonal communication because
you are less likely to find a job without all these skills.
To acquire good work habits and sense of responsibility.
To enhance my learning experience by application of fundamental
concepts previously learned.

Page

I choose the bank for internship because I have a great interest in banking and
management because banks are playing very important role in the development
of economy.

1.2

Scope of Studies:

As an internee in National Bank of Pakistan the major focal point of my internship

was on general banking method in one of the branches of NBP. These operations
include

Remittance department
Advances department
Clearing department
Account opening department
EBS department
Government department and also other different aspects of overall of
NBP are also covered in this report.

During internship I worked in all departments and learned a lot during that period.
Its scope is wide because I moved in all departments of bank during internship so
i got surface knowledge of all areas of bank. It really helps me in recruitment job.

1.3 Research Methodology:

The statement is stand on my six week study in National Bank of
Pakistanrasoolnagar branch,The methodology reported for compilation of data is
primary as well as secondary data. Personal observation was my main source
getting information while working with bank staff and having conversation with
them. Formally arranged discussions and negotiations also helped me in this
regards.
1.2.1 Primary data:
Personal observations
Interviews of bank staff

Page

1.2.2

Secondary data:
Internet
Journals
Magazine
Annual reports

2. Overview of the Organization

2.1

History of National Bank of Pakistan:

The National Bank of Pakistan was recognized vide NBP Ordinance Number XIX
of 09 November, 1949. British Government devalued its currency in September
1949, India devalued its rupees but Pakistan did not. It led to a crisis in trading
between the two countries and India refused to lift the Pakistan Jute. To solve
this problem, to export jute NBP was established through an Ordinance of GOP
(Government of Pakistan).

NBP maintains its position as Pakistan's premier

bank determined to set higher standards of achievements. It is the major

Page

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.
NBP was undertaking Treasury Operations and Managing Currency Chests or
Sub Chests at 57 of its offices where the turnover of the business under the head
amounted to Rs. 2460 million. 14 Deposits held by NBP constituted about 3.1%
of total deposits of all Pakistani Banks in 1949, which rose to 38% in 1952.
Growth in Deposits was accompanied by increase in Bank portfolio in advances.
NBP lent out to Textile, Yarn, Iron and Steel and played a pioneer role in support
of agriculture and commerce. 15 NBP advances reached Rs. 554.4 million by
December 1959, which was one third of the total schedule bank credit.
National Bank of Pakistan is the largest commercial bank operating in Pakistan.
Its balance sheet size surpasses that of any of the other banks functioning
locally. It has redefined its role and has moved from a public sector organization
into a modern commercial bank. The Bank's services are available to individuals,
corporate entities and government. While it continues to act as trustee of public
funds and as the agent to the State Bank of Pakistan (in places where SBP does
not have a presence). It has diversified its business portfolio and is today a major
lead player in the debt equity market, corporate investment banking, retail and
consumer banking, agricultural financing, treasury services and is showing
growing interest in promoting and developing the country's small and medium
enterprises

and

at

the

same

time

fulfilling

its

social responsibilities ,as a corporate citizen.

Mission statement:
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

Page

Vision statement:
To be recognized as a leader and a brand synonymous with
trust, highest standards of service quality, international best practice
practices and social responsibility.

Highest standards
of Integrity
Core
values:
Institutionalizing a teamwork and performance culture
Excellence in service
Advancement of skills for tomorrows challenges
Awareness of social and community responsibility
Value creation for all stakeholders.

2.2

Nature of National Bank of Pakistan:

National bank of Pakistan provides commercial banking and related services. It

provides different products and services. The Bank has a network of 1500
branches in over 300 cities and towns. NBP give a lot of services to its customers
that can satisfied them and reduce their time consumption by using such services
like;

Receiving Deposits

Page

Advances of Money

Safe Custody

Transfer of Money

General Utility Services

It also provides services to small borrowers, including consumers, small and

medium enterprises (SMEs) and agriculture sector.The nature of responsibilities
of the NBP is singular and exceptional from other commercial banks or financial
institutions. The NBP also deal with treasury treatments for the Government of
Pakistan as an agent to the State Bank of Pakistan for treatment of provincial
Government or Federal Government receipts and payments on its behalf.

2.3

Business volume of National Bank of Pakistan:

The business volume of National Bank of Pakistan is declared in terms of total

assets, deposits, advances, reserves and investments.

Year

2008
In 000 Rs

2009

2010

2011

201

In 000 RS

In 000 Rs

In 000 Rs

In 00

Total assets 817,758,326

944,582,762

1,035,024,680

1,149,577,736

1,309

Deposits

624,939,016

727,464,825

832,151,888

927,421,438

1,037

Advances

412,986,865

475,243,431

477,506,564

525,045,764

657,3

Reserves

19,941,047

22,681,707

24,450,244

25,342,817

116,0

Page

Investment

170,822,491

217,642,822

301,323,804

319,531,213

s
( http/www.nbp.ed
u.pk)
Total assets, deposits, advances, reserves and investments of last five years are
stated and to find out the trend horizontal analysis of each item is done.

Horizontal analysis:

Year
Total assets
Deposits
Advances
Reserves
Investment

2008

2009

2010

2011

2012

100
100
100
100
100

126
124
131
143
122

146
145
150
163
155

160
166
151
176
215

178
185
166
182
228

Analysis:
Total assets:
During last 5 years total assets of national bank of Pakistan has shown a positive
trend as it is shown by above table.In 2009 there is 26% increase, in 2010 it
showed a remarkable increase of 46% as compared to 2008. In 2011 total assets
are 60% and 78% more in 2012.

Page

343,5

Deposits:
Deposits are also showing an increasing trend which shows a huge business of
NBP.in 2009 there is an increase of 24%, in 2010 increase of 45%, in 2011 66%
increase and in 2012 there is increase of 85% as compared to base year.

Advances:
Advances showed a 31% increase in 2009 as compared to base year, in 2010
there is a significant increase of 50% and in 51% increase is observed in 2011
which is not as much as in 2010.in 2011 advances are increased by 66% in
comparison with that of 2008.

Reserves:
Reserves of 2008 are taken as 100% and all that of other years will be compared
with that of 2008.in 2009 increase of 43% is observed, in 2010 there is increase
of 63%, 2011 showed an increase of 76% and increase of 82% is shown in 2012.

Investments:
As compared to 2008, 2009 shows increase of 22% in investment, 2010 shows
that of 55%, 2011 is depicting a remarkable increase of 115% and 2012 is
showing investment increase by 128%.
In a nutshell, business volume of national bank of Pakistan is expanded during
last 5 years.

Page

2.4

National Bank of Pakistan Awards and Achievements:

"Best Foreign Exchange Bank 2008 awarded by world's leading
financial journal Global Finance".
Best Return on Capital for 2006 amongst all Banks in Asia. Banker Magazine in July 2007.
World's leading financial journal, Global Finance has named NBP
as the Best Emerging Market Bank from Pakistan for the year
2006.
"Best Foreign Exchange Bank Pakistan award for the year 2006
by world's leading financial journal Global Finance.
Due to consistent improvement in NBP's Core Profitability, Asset
Quality and Economic Capitalization in recent years, Moody's
Investors Service upgraded the Financial Strength Rating (FSR)
from E+ to D-, in November 2005.
Best Foreign Exchange Bank Pakistan award for the year 2005
by world's leading financial journal Global Finance.
Best Bank - Pakistan award for the year 2005 by world's leading
financial journal Global Finance.
The Banker Magazine in July 2005 recognized NBP as the 10th
Best Bank in terms of Profit on Capital' in the world.
Bank of the Year awarded for the year 2005 by the world
renowned The Banker magazine owned by the Financial Times
Group, London.

Page

2.5

The Products and Services of the NBP:

National Bank of Pakistan is today a progressive, proficient, and customer alert

institution. It has developed a broad range of consumer products, to improve
business and offer to the different segments of society. The National bank of
Pakistan is providing the services as a government bank as well as a commercial
Bank. The major functions of National bank of Pakistan include receiving
deposits, advancing loans and remittances and some other services that are as
follow:
2.5.1 DEPOSITS:
Current Deposit.
Profit & Loss Sharing Deposit (PLS) Scheme.
Fixed Deposit Account.
NBP Premium Aamdani.
NBP Premium Saver.
National Income Daily Account (N.I.D.A).
Current Deposit:
The NBP is providing the current deposit plan, it is Ideal for customers who
seems for safety of their money along with complete convenience use the
Current accounts.

Money deposited in the bank, will be used this amount by the

bank at its alone carefulness in Shariah acceptable avenues.

Customer has flexibility to withdraw his/her whole or a part of

balance whenever he wants.

This is a non-profitable deposit scheme and therefore the
customer will not be distribution the profits nor will be sharing.

Profit and Loss Sharing Deposit (PLS):

Page

Profit and Loss Sharing Deposits plan will admit deposits on Mudaraba basis.
The customer will have the elasticity to withdraw whole or a part of their amounts
at any time as on their necessity. The NBP will give profit to the customer on the
basis of decided ratio of real profits to be declared by the Bank from time to time.
In the occasion of financial loss, the customer will tolerate the loss in share of
their investment. The customers will not contribute in the administration of the
business of the NBP.
Fixed Deposit Account:
In the Fixed Deposit Account the NBP accepts these deposits with least amount
sums as set by the NBP for a fixed period of time. A customer can fix his amount
in the fixed deposit account for the one month to five years period. Minimum
deposit is accepted is Rs.25, 000/= with no maximum limit. Availability of all types
of investors i.e. individuals, partnership firms, public and private limited
companies, corporation, trusts, and government bodies. Profit is paid on maturity.
Its profit rate is higher than the PLS account.
NBP Premium Aamdani:
NBP Premium Aamdani is a retail product of the NBP. The amount of investment
required for this account is Rs. 20,000/- to Rs. 5,000,000.The investment period
is 5 years. Withholding tax and Zakat will be subtract as per rules. In NBP
premium Aamdani, the account holders have benefit of free demand draft, pay
order; free cheque book and NBP cash card (ATM+Debit). The Financing facility
is available up to 90% of the deposit value.
NBP Premium Saver:
NBP Premium saver is a retail product of the bank and the account holder can
earn up to 7.25% p.a. +. The minimum saving balance of Rs. 20,000 and a
maximum balance of Rs. 300,000 are required for opening a premium saver

Page

account. Two debit withdrawals allowed in a month and no limit on number of

deposit transactions. The profit is calculated monthly and Paid on half yearly
basis. Free NBP Cash Card (ATM + Debit) facility is available to account holder.
National Income Daily Account (N.I.D.A):
NIDA account was started in December, 1995 to attract corporate customers. It
is like current account scheme and also part of the PLS accounts in operation
throughout the country.
2.5.2 ADVANCES:
Ijarah (Leasing).
NBP Gold Loan.
NBP Saibaan.
NBP Advance Salary
NBP Kisan Dost
Ijarah (Leasing):
NBP is providing the loan facility Ijarah means to provide something on rental
fee. The word IJARAH is like to the English term leasing.
Initially the NBP will buy the assets as requisite by the customer and
consequently the assets will be rent out to the similar customer on the conditions
and rules as agreed with him.

Vehicles (both Commercial and Private).

Office Equipment.
Plant and Machinery.

NBP Gold Loan:

NBP provides the loan facility for Rs. 25,000/- against each 10 gms of net weight
of Gold Ornaments. There is no maximum limit of cash and repayment after one

Page

year. The NBP provide the roll over facility and there is no penalty for each
repayment.
NBP Saibaan:
The NBP Saibaan is retail product of the NBP. It has different product items
which are home purchase, home construction, home restoration and buy of land
along with construction. If anyone has a Home Finance Facility outstanding with
another bank he can have it transferred to NBP through a hassle-free process.
NBP Advance Salary:
The NBP is providing loan facility to the Permanent Employees of Government,
Semi-Government, Autonomous, Semi-Autonomous, Local and other bodies who
are maintaining their Salary Accounts at NBP. The Maximum loan amount is up to
Rs. 490,000. And repayment is direct deduction from Salary A/C with maximum
repayment Period of 5 years (60 months). The Markup Rate is SBP Discount
Rate + 5%.
NBP Kisan Dost:
This scheme is specially designed to assist the farmers in expanding their
businesses and means of income generation. Under this offer the farmers and
their allies like dairy farm owners are aided not only with loans but also with the
technical guidance of agricultural experts that may help them in better yields per
unit of input employed. By utilizing this product a landless farmer can enjoy a
financing facility up to Rs. 500,000 on competitive mark-up rate against personal
guarantee.

The

financing

can

also

be

availed

against

pass

book,

residential/commercial Property, gold ornaments and paper security.

Page

2.5.3 Remittances:
Four main modes of remittance are:

Demand Draft.
Mail Transfer
Pay Order..
Telegraphic Transfer.
Western Union.

Demand Drafts:
A Demand Draft is created by a seller with a buyer's checking account number on
it, but without the buyer's signature. If anybody is looking for a secure, quick and
reliable way to move money, now he can purchase NBPs Demand Drafts at very
sensible rates. Any person whether an account holder of the bank or not, can
purchase a Demand Draft from a bank branch.
Mail Transfers:
Transfer your money securely and speedily by NBP Mail Transfer service. And
NBP also recommend the most competitive rates in the market. They charges Rs
80/- (for a limit of amount 100000) exchange rate and RS 75/- postage charges
on issuing mail transfer.
Pay Order:
NBP offers another way to move your funds using Pay Order facility. NBPs pay
orders are a safe and simple way to shift your money from one place to another.
And, as usual, its charges for this service are very competitive.
Western Union:
NBP provides the facility of the Western Union. The foreign remittances can be
received by NBPs branches.

Page

2.5.4 OTHER SERVICES

In addition the following services are also being offered at the NBPs Branches:
Handling of salaries & pensions of Government personnel:
The NBP is providing the service of handling the salaries and the pensions of the
governments employees.
NBP Cash Card (ATM + Debit Card):
The NBP gives the facility of ATM and debit cards. Use an ATM in any of the
ATMs in Pakistan and Debit Card in any of the outlets with ORIX POS machine.
The limit of cash withdrawal is up to Rs. 20,000/- per day
Letter 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 is the best way to do your
business transactions.
Government Collections:
As the NBP is the bank of government of Pakistan so it collects the government
collections. All the government challans and different fees are collected by the
NBP.
Utility Bills Collection:

Page

The NBP is also providing the facility of the utility bills collection. The utility bills
are accepted in all the branches of the National Bank of Pakistan.
Sale and encashment of prize Bonds:
The NBP provides the facility of encashment and sale of prize bond. As the NBP
is the agent of the State Bank of Pakistan so it is providing the services in the
absence of SBP.
Safe Deposit Lockers for customers:
The NBP provides the locker facilities to the customers at the competitive
charges. An account holder in the NBP can get Locker in branch of NBP where
he/she has account.
Hajj Applications:
NBP is committed to offering its business customers the widest range of options
and it also provide the facility of Hajj applications that are accepted in all the
branches of NBP.

2.6

PEST Analysis

A scan of the external macro environment in which the firm operates can be
expressed in the following factors;

Political
Economic
Social
Technological

PEST analysis is used to describe a framework for the analysis of these

macro environment factors.

Page

2.6.1 Political Factors:

The ongoing shift in power in political arena in the country effects
the performance of the bank has to forward loans to politically
powerful persons which create a sense of insecurity and

demoralization in the customer as well as employees.

Government is providing opportunities to the Organizations to
provide benefits like old-age benefits, disability benefits, pension,
etc. These benefits are to be provided by every organization under
the supervision of Social Security Ordinance. NBP is also providing

its employees the benefits of social security.

The NBP has a trade mark and a trade name that gives the NBP an
exclusive right by the government policies to use it and enter into

contracts and dealings through its registered trade name.

NBP is bound to follow the workers safety regulations as laid down

by the workers safety act.

NBP also publishes its annual reports as are compulsory to publish
by the government.

2.6.2 Economic Factors:

Pakistani government is somehow stable and focusing on the
foreign trade. NBP is taking advantage of this move by government
and is trying to increase their exports. 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.

NBP offers a variety of products and services for different types of
customers. For example, NBP advance salary, NBP karobar, NBP

kisan dost etc.

National Bank of Pakistan keep up its place as Pakistans premier
bank determined to put superior values of achievements. It is the
main business colleague for the Government of Pakistan with
particular emphasis on development Pakistans economic growth

Page

through aggressive and balanced lending policies, technologically

oriented products and services offered through its large network of
branches locally, internationally and representative offices.

2.6.3 Social Factors:

Terrorism remained the biggest challenge and the negative effects
of international economic meltdown also became evident in the

shape of sharp rise in non-performing loans and operating costs.

With 'Flood Relief' work taking place all over the country, the banks
of Pakistan are expected to contribute immensely in rehabilitation of
the displaced and distressed Pakistanis, along with reconstruction

of the basic infrastructure destroyed in the floods.

Problems in the energy sector played a key factor in burdening

public finances.
The salaries of the employees and management are not
satisfactory so the income distribution factor is not satisfactory.

2.6.4 Technological Factors:

Latest technology is being used by the NBP for services in order to

2.7

satisfy customers with fast and active softwares.

NBP has provided the computers to the staff members to get actual

result and and to save the time.

Different softwares are being used in NBPs different Departments.

Contribution of NBP towards Economic Development:

Banks play an important role in the progress and advancement of a nation. The
contribution that a bank pays to the development of an economys objectives are
inherent in its core function, accepting deposits from the savers in the economy
who have sufficient resources with them in idle state and advancing those

Page

deposits in the form of loans to investors who are short of sufficient resources. By
performing this function a bank is actually mobilizing the resources in an
economy towards their most efficient utilization.
With its present status of a purely government sector organization NBP can be
undoubtedly thought of contributing a lot towards the economic development of
Pakistan. NBP is performing not only the role of a national bank but it is also
acting as an agent to State Bank of Pakistan in those areas where SBP is not
having its branches. SBP is highly dependent in the performance of the due
tasks from NBP branches especially in those areas where SBP branches are not
operational. This means that NBP can be considered of massive importance in
achieving national economic objectives.
As evident from the countless of schemes, discussed above, NBP is playing an
active role in raising the living standards of the people of Pakistan. In addition to
this NBP has also contributed a lot in the foreign exchange business particularly
in the assistance of promotion of exports to other countries.

3 Organizational Structure
3.1 Organizational (NBP) Hierarchy chart:
PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22

Page

EXECUTIVE VICE PRESIDENT

GRADE 21

VICE PRESIDENT
GRADE 20

ASSISTANT VICE PRESIDENT

GRADE 19

GRADE I OFFICER
GRADE 18

GRADE II OFFICER
GRADE 17

GRADE III OFFICER

(GRADE 16)

3.2 Number of Employees of National Bank of Pakistan:

Permanent

13237

Temporary/ On Contractual basis

842

Bank's own staff strength at the end of the year

14079

Outsourced

2350

Total Staff Strength

16429

Page

3.3 Main offices:

The Head Office of the National Bank of Pakistan is at Karachi. NBP grip on its
business all the means through a large set up of branches those are positioned
in the country and also out of the country very efficiently and in point of fact. All
branches carry out their jobs under the regulation of local Regional Offices and
regional offices are restricted by the Head Office placed an outstanding building
in the heart of Karachis center.
NBP has a wide domestic branch network consist of more than 1250 branches
located in all over the country. NBP has also more than 24 branches out of the
country.

3.3.1 SINDH;
In the Sindh the main offices of the NBP are in the following cities;

Karachi
Dadu/ Sanghar
Hyderabad
Jacobabad/ Shikarpur
Larkana
Mirpurkhas/ Badin
Nawabshah/ N' Feroze
Sukkur/ Khairpur
Tharparkar

Page

3.3.2 PUNJAB;
Punjab has the main offices of the NBP in the following cities;

Lahore
Faisalabad
Gujranwala
Sialkot/ Narowal
Islamabad
Jhang
Jhelum/ Gujrat/ Chakwal
Bahawalpur
D.G. Khan/ RYKhan
Multan/ Baha'nagar
Murree/ Attock/ Gilgit
Rawalpindi
Sahiwal
Sargodha/ Sheikhupura

3.3.3 NWFP;
In the NEFP main offices are in the following cities;

Peshawar
Abbott Abad
D.I. Khan
Kohat
Mardan

3.3.4 BALUCHISTAN;
Main Branches of NBP are in the following cities;
Quetta
Azad Kashmir

Page

 Muzaffarabad
Mirpur
In addition to this NBP also has its branches working in other countries. The countries
where NBP branches are located are USA, Canada, Germany, France, Bahrain, Egypt,
Bangladesh, Hong Kong, Japan, South Korea, Peoples Republic of China, Afghanistan,
Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan, Azerbaijan, and Saudi Arabia.

3.4

Introduction of Departments in NBP:

Following are departments in NBP:

Deposit Department
Account Opening Department
Remittance Department
Cash Department
Clearing Department
Advance Department
Government Department

3.4.1 Deposit Department:

Deposits are very essential element of banks because the entire body of financial
institutions cannot survive without deposits. The cause is that the main purpose
of the banks is that they stimulate the money in the economy. Deposits received
by customers increase the liability of bank and when bank lend it to the

Page

barrowers it makes the asset of bank. The income of the bank is deliberate by
the difference between banks liability and lend the money. The money is
borrowed from them who have access capital.
3.4.2 Account Opening Department:
This department is connected to open new accounts of the customers. The
opening of an account is the establishment of the relationship between the bank
and customer. After opening account at a bank the account holder becomes a
customer of the bank.
Opening of an account is important for a bank; there is need of huge care in this
matter. NBP has specific structure and technique for opening on account which is
harshly stood for all its branches. There are many types of account such as
Current, PLS saving, PLS term, Premium saver, BBA, Call deposit and NIDA
account.

3.4.3 Remittance Department:

Remittance means movement of money from one place to another place. NBP
provides amount of services to shift money from one place to another place. Pak
remit is an internet support Home Remittance Service. The people who worked in
other countries can send money to their family members or friends in Pakistan by
using E-Remittance facility in NBP.
Remittance can take place in three different ways, Demand Draft, Mail Transfer
and Telegraphic Transfer.
3.4.4 Cash Department:
The most carefully segment in the bank is Cash Department. The motive is that it
performs very sensitive activities like bank payment (payments of cheques), bank
receipts (cash deposits prepared by account holders), Government receipts

Page

(collection of income tax, sales tax, property tax and traffic challans) and
Government payments (salary payments to Government employees and Pension
payments). Collection of utility bills (electricity, gas, PTCL and water bills).
3.4.5 Clearing Department:
In the clearing process both the debtors and creditors are different banks and
they resolve their claim. Clearing is the movement of funds from one branch of
bank to the other branch (it may be the same bank or the other bank on which
the instrument is drawn). All commercial banks are associated with the bankers
clearing house which makes easy the patch up of daily balances appropriate
between member banks occurs from the cheques and cash dealings throughout
the country, whether by the general public or individual banks.

3.4.6 Advance Department:

The banks provide by keeping some valuable securities such as gold, property
etc, and banks are chosen such types of securities because these are not easily
decrease in value (Gold, property etc.) banks also lend money against
promissory note. The major intention of the commercial banks is to lend money
because it is the basic resource of revenue generation for these banks. State
Bank of Pakistan has approved set of laws named as PRUDENTIAL
REGULATIONS, for this purpose. This law is harshly followed by all the
commercial banks and if any bank does not follow these laws then it should be
punished by penalties under the rule of SBP PR(S).
3.4.7 Government Department:
Payment of pension also is being done by this department. It is also deals with
Government receipts (collection of income tax, sales tax, property tax and traffic
challans) and Government payments (salary payments to Government

Page

employees and Pension payments), Government Department section receives all

the provincial and central receipts.

3.5

Comments on NBPs Structure:

National Bank of Pakistan hold a technical Structure, it is a structure that strain

extremely regular working tasks accomplished through specialty, in NBPs
structure greatly modified rules and regulations are followed, everyday jobs are
assembled into functional departments, narrow spans of control, centralized
authority, and decision making that follows the chain of command. National Bank
of Pakistan has very centralizes structure and right decision are taken at the right
time. Head office issues policies and these policies put into perform within the
bank as per the strategy. There is a branch manager who looks after the entire
work within the branch and he/she directs the working of the bank according to
the commands. He/she has the skills of advance response to shifting situation,
high capability of conflict resolution. Every person working in each department is
allocated various activities which raise their task performing skills. Every
department focus at its own work no one has intervention in other department. It
increases the proficiency of each department, as there is no external participation
by any person. They are not answerable to any person with whom they are not
directly

concerned.

The structure of NBP decreases the uncertainty and complication. The tasks are
appropriately hand over to the bank officer who known well about that specific
work. Everyone knows in case of emergency to whom they will report and what
to do in time of disaster. All officers are well supportive and help out each other in
their work. This structure contains a friendly work environment. Every employee
of NBP is given promotion opportunity. Overall, the entire environment of NBP
bank is very well recognized and excellent. It is a well-defined structure.

Page

Part II
4 My Internee Work:
4.1 Introduction of the branch:
I did my internship work in national bank of Pakistan Rasoolnagar Branch.
I have not any practical experience of work regarding the banking sector. When I
started the bank, I was very excited to work in that branch, the manager of that
branch Mr. Mukhtar Ahmed butt is the very kind hearted and cooperative person,
he told us about all the departments of the bank. He gave me the friendly
environment and calmly welcome to me. I was very happy because of their
behavior and effectiveness.
The national bank of Pakistan rasoolnagar branch located in Gujranwala district.
The person of people who worked in that branch are 15.it is not a very large
organization. The environment of learning and operational of that branch is very

Page

helpful and effectively valuable for me .The environment of that branch was very
kind to me.I was very much specified to work in national bank of Pakistan in my 6
weeks tenure.
The national bank of Pakistan provides the best services to their customers and
employees also have the best and friendly relations with each other. This branch
provides the basic and best equipments to their employees and also provides
the best resources to facilitate the customers and also their employees to get the
higher profit and compete with other branches as well. When you entered in
branch you can feel the difference of this branch with any other branch at the
Gujranwala sector.

4.1.1Details about the branch:

Branch name:

National bank of Pakistan

Address:

rasoolnagar Gujranwala district

District:

Gujranwala

Province:

Punjab

Status:

online

Website:

www.nbp.com.pk

Page

4.1.2 HIERARCHY CHART AND DEPARTMENTS IN NBP SERVICE

INDUSTRIES BRANCH,

Designation of the staff in branch

DUTIES
Controlling all the affairs of the
bank

MANAGER

Passes the loan of that specific

MUKHTAR AHMED BUTT

branch, verify all the ledgers and

then take the decisions, target the
affairs of the bank.

OPERATIONAL
MANAGER

Controlling all departments and

MR. RIZWAN AHMAD

monitoring operational matters

OG2
MUHAMMAD MUNIR (Head Cashier)

Govt. receipts, gold finance,

cheque payments ,receipts

NAVEED AHMED

Officer OG 2

SAEEDA SALEHA TOHEED

Officer OG 3

Page

SHEHBAZ BUTT

Specialist gold maintenance

ASSISTANT
IQRA TABBASUM

MUHAMMAD ASLAM

Pension maintenance
Unarm guard
(Maintenance of files and vouchers)
ATM cards issued to the people,
installments of the cash of bank

ATM INCHARGE/SUPERVISOR

customers understood the

MR. MAZHAR CHEEMA

problems of bank customers

, balance day book, progress
report.

REMITTANCE
SAIF ULLAH WARRAICH

Demand draft, mail transfer, online

HAJI IFTIKHAR&AKHTAR RASHEED

Sweeper guard

AZAAN (Messenger)

Helpers

4.1.3 Dates OF STARTING AND ENDIND OF WORKING IN NATIONAL BANK:

I started my internship on 8july 2013 and the ending date was 18 september
2013. These six weeks are the best experience of my life.

4.2 Supervisor:
During my training and internship in national bank of pakistan, miss
Salehatoheed and iqratabbasum was my supervisors. They both are very polite
to me and teach me as just like the good companion. I am very lucky that I have
such kind of workers during my internship. They both are became my good
friends and teach the basic and general rules of the different activities of the bank

Page

like how to fill the vouchers, how to fill the different ledgers, how to make the
entries in ECIB and online payments to others banks, how to opening the
accounts.
These are all the different kind of activities which I learned from my both
supervisors and especially the Miss Salehatoheed. She was very well honored
and having the intelligence on their work.

4.3 My working areas in which I accomplish my internship

During my six weeks of short period of internships, I have to work on different
departments. The basic 3 departments in which I worked these are:
Departments:
Advances department
Government and pension maintenance department
Customer service department

Page

MY WORKING ACTIVITIES:
FIRST WEEK
Date

Day

Work Description

8-7-2013

Monday

I was introduced to the bank employees and all departments

9-7-2013

Tuesday

I filled deposit slips and prepared scroll for utility bills and
ledgers

10-7-203

Wednesda

I fill deposit slips and issued cheques

y
11-7-2013

Thursday

Fill the deposit slips and cheques issuance

12-7-2013

Friday

Filling of slips and entries in ledgers

Verification:
Maamsalihatoheed
Officer grade III

Page

Second week:

Date

Day

Work Description

15-7-2013

Monday

I transferred the information of gold items on forms provided

by supervisor

16-7-2013

Tuesday

Along with transferring of gold information, I made entries in

advances ledger

17-7-203

18-7-2013

Wednesda
y

I made entries in ledger and started preparing loan

statement

Thursday

Along with entries in ledger, I entered data regarding

customers in ECIB

19-7-2013

Friday

I completed data entry in ECIB

Page

Verification:
Maamsalihatoheed
Officer grade III

Third week:

Date

Day

Work Description

22-7-2013

Monday

I made online tax payments to federal board of revenue

23-7-2013

Tuesday

I made online tax payments to federal board of revenue

24-7-203

Wednesda

I updated loan statement according to new borrowers of

bank

25-7-2013

Thursday

I observed how account opening form is generated and got

it
filled by customers

26-7-2013

Friday

I learnt how to generate advances forms electronically and

also transferred information about gold items to that forms.

Page

Verification:
Maamsalihatoheed
Officer grade III

Fourth Week:

Date

Day

Work Description

29-7-2013

Monday

I deleted the information of customers whose accounts has

been closed to update the statement according to the exact
number of customers

30-7-2013

Tuesday

Same as above

31-7-203

Wednesda

Same as above

y
1-8-2013

Thursday

I transferred information about gold items on the forms and

made entries in ledger

2-8-2013

Friday

I updated loan statement and entered information at ECIB

regarding customers and loans

Verification:
Maamsalihatoheed
Officer grade III

Page

Fifth week:
Date

Day

Work Description

5-7-2013

Monday

Provided forms to customers, got them filled and made

general entries

6-7-2013

Tuesday

I learnt how to make data entry for renewal case at ECIB

and also completed entry of customer and loan information.

7-7-203

Wednesda
y

I completed forms for bank by transferring information of

gold items which are held by bank

Thursday

I entries of loan against gold and entered information at

8-7-2013

ECIB
9-7-2013

Friday

I finalized loan statement of the month

Verification:

Page

Maamsalihatoheed
Officer grade III

Six week:
Date

Day

Work Description

12-7-2013

Monday

I calculated amount of pension for government pensioners,

wrote it on slips and made entries in pension register

13-7-2013

Tuesday

I did calculations of pension and made entries in register

14-7-203

Wednesda

I did calculations for more than 1 month and along with

entries

in register, I prepared scroll for pension and then balanced

it.
15-7-2013

Thursday

I issued some Cheque books and also prepared scrolls for

utility bills.

16-7-2013

Friday

Along with calculations of pension I also entered loan and

new customer information at ECIB

Verification:
Maamsalihatoheed
Officer grade III

Page

4.3.1 The different departments of national bank where I worked:

I already described that I worked in different departments for gaining the practical
knowledge about the different activities of the bank.
Here I informed that I worked in 3 basic departments, firstly:
4.3.1.1 Customer service department:
The customer services department in any kind of the bank branch provides the
best and basic resources to their customers and eliminates their problems by
creating the best learning environment. The bank is the large organization that
receives the deposits and takes the advances for gaining the profits. But the
department of the customer service provide the customers that how to fill the
vouchers in terms of dates, proper codes and also the proper signatures of the
customers. This kind of department also provides the cheque books and the
procedure regarding to that cheques that how to fill the cheques. The proper
signatures of the people must be written in the cheque otherwise the cheque may
be rejected. So, it is the function of the customer service to provide the best
suitable rules and regulations regarding the vouchers, slips and the cheques as
well to their valuable customers.
This department also deals with providing the services of the pensions to the
pensioners. The department of customer service takes the great role to provide
the customers the best solutions about their problems and make the customer

Page

satisfied in terms and nature of their different conditions which the people want to
solve out.
In kind of any quarrel situation in bank, the different departments of banks and
their employees take the positive step ahead. But this department has the great
importance to solve the kind of problems because basically, it specially deals with
such kind of people.
4.3.1.2 Advances department:
The department of advances in all over the banks of world has the same
importance. Its basic purpose is to provide the advances to different customers
who wants to get the advance but the rate of interest must be apply regarding the
amount of loans and advances. As everybody knows, that bank only works for
profits and the advances department has the most significant role in any kind of
banking sector.
The mostly profits are earned by this department of advances through the
interests which are indirectly received by the people who take the advances. The
control of all the advances is mainly the responsibility of the credit management.
The bank takes the deposits from different kind of people who have the excess
amounts and provide the advances and funds to the needy people who have not
any other kind of or way of funding but at the high rate of interest.
This department also provides the other different advances activities like, it also
take the advance in against of the gold items. The different rules and regulations
apply in the place of gold advances.
If any kind of the individual or the organization, who needs loan or advance from
the national bank of Pakistan has must fulfilled the following necessary
information, he must fill the specific form which was necessary for the banker or
the person who gave the loan.

Page

This basic informations are as under:

The borrower name and address
The individual financial condition that in case of the due date of loan, He

may be able to provide the loan back to the bank or not.

There must be the mention of the security and analyze its market value.
The borrower also signs the specific type of form named as promissory
note in which he signs that at the due date he returns the entire amount
along with their interest.

4.3.2 The different principals and rules of Advances:

There are the basic five principles which the bank must be observed while gave
the advances and the loans.
I.
II.
III.
IV.
V.

Safety loan
Security liquidity
The dispersal security by the bank in case of need
The bank remuneration as interest
The loan along with the suitable security

4.3.3The different forms of advances:

NBP make and provides the advances or loans in different forms to its
valuable and specific customers as the condition of the borrower needs.

Advances can be the following types:

cash finance without any security,
Overdraft facility
Demand finance.

Page

a) Finance of cash without any security:

This kind of loan is very beneficial for the big organizations and the other
kind of large business concerns. These large scale businesses can get
the available cash finance by the merchandise or by the produce.It may
also be very useful because the large organizations can get the finance or
the whole amount at once time. Such kind of department is very useful
especially for the borrower because he will pay the markup on just that
amount which he actually uses. The full limit of amount, if the borrower
not use than it is the loss of the bank because he lost the opportunity to
earn the interest or markup.
It is the responsibility of the bank to make the specific rules in the
agreement for the use of amount that will pay the quarter interest of the
full amount. In that case the borrower can reduce the chances of loss.

b) Overdraft Finance
Overdraft finance is the most commonly used advance or loan which is provided
by bank mostly to its valuable and specific type of customers. According to this
facility, the customers can get the loan more than the amount which he has in
their account. If such type of advance is against the collateral security than it
names as Secured Overdraft and when the customer who borrowed the money
cannot offer any type of collateral security rather than his personal security, this
type of facility is called aClean Overdraft. The customer who borrow the money
is in the profitable financial condition because he has to pay the charges only on
the outstanding amount.

Page

c) Demand finance
This type of loan can be paid at any time because such type of finance has not
any kind of the maturity date. This can be paid at the demand of the lender when
he demand for the early payment ant there may be no charges apply for such
this kind of demand finance.
I spend my mostly time in advances department in which I deals with gold items.
This department takes the advances against the items of gold weightage and the
markup rate apply in terms of the gold reserves was 15.5%. Those departments
mostly take the loans for one year. The special rules applied for such type of
agreement and the customers can also renew the loans to extend the time of
loans. The forms for making the agreements can generate by electronically and
then the further proceedings or the tasks can be done.

4.3.4 Opening the new account:

The opening of the new account is basically the contract between the customers,
the NBP and the banker who opened the account. The account can be opened
electronically by the specific system of the bank. The different accounts can be
opened by the demand of the customers and after this the bank allot the account
numbers to the customers so than they will be able to deposit the amounts.
The forms for the new accounts generate electronically and then the forms filled
by the customers regarding to the requirements of the customers.
Account opening procedure:

Account title
Information of the account holder
Account number
Signature of the specimen
Next of kin information
Deduction of the zakat instructions

Page

Account nature
Thanks letter

4.3.4 Account types:

These are theFollowing types of accounts which are opened in NBP:

a) Sharing the profit and loss account:

Profitand loss sharing account is mostly for the small traders or the salaried
persons or the practical or professionals who have not the much transactions and
amount to deposit in the bank. But they have the ability to deposit it in any time
and in any form. The bank takes the deposits from the small traders and the
professionals and the salaried persons and then gave the advances to the large
organizations for getting the higher profit. The people share the profits but in
case of the loss the customers can also share it for their investment.

b) Current account:
Current account are opened for mostly the business sector, because they have
the large business connections with other businesses and they need money at
any time so the bank take the deposits and the cheques for such kind of
business class because it create the benefit

for the bank and create the

entertainment also.
So the banks do not invest the whole amount because the current account
holders can demand for the amount at any time. Bank receives the higher rate of
interest for current account holders because bank cannot invest their deposits in
any other beneficial projects.
4.3.5 FEATURES OF CURRENT ACCOUNT:
1. Current account must be opened by the amount of rupees 100.

Page

2. Banks create the no limit for the deposits.

3. The advances and the deposits can be withdrawing with the permission of the
current account holders.
4. The foreign currency and the local currency can be deposited in the accounts
of the current account holders.
5. The following people or institutions can deposit the amounts in current
account:

Individuals
Sole proprietor
Partnership organization
Clubs societies and other institutions

6. The bank can play an important role as an agent because he receives the
deposits, prepare the cheques and then make the payments.
7. Any kind of the profit is not paid to the current account holder.
8. Account holder also provides the information of next of kin that in case of any
kind of problem I may not be able to response to the bank, than the next of kin
will be responsible for the current account holder.
9. Bank can withdraw the amount from the current account holder at any time.
10. Current account holder must maintain the maximum amount in his account.
11. Bank also provides the ATM cards to their specific customers to made the
cash available for 24 hours.
12. The statements of the accounts provided to the depositors of the account
holders whenever they required.

Page

c) Term deposits:
Term deposits are basically the type of deposits which cannot be given at
demand because the specific time is fixed for such deposits thats why these are
called the term deposits. If the individual who wants to get the money before
the fixed time. Then he must pay the charges against these deposits.

4.3.6 Government and pension maintenance department:

Government and pension maintenance department of the NBP has the basic
function to calculate the amounts of pensions prepare the scrolls for the safety
and made the ledger entries. Miss IqraTabbasum was the head of this
department. Scrolls are basically prepared to check out the whole amount which
was given.
This department also made the demand draft and other activities of the
governments like the deal with 20% increments by the government after the date
of the 30 july.

4.3.6 My different working activities during my internship:

4.3.6.1 The department of customer service

Page

In customer service department, at the first day of my internship the branch

manager gave me the introduction of all the departments where I worked in my
next six weeks internship program. The manager of that branch introduced me
the head of the customer service department Miss IqraTabassum. She told me
the different general activities and rules and regulations of the banks. I was very
inspired with her behavior and the manager also does me the favor to work in
that department and also gain the relevant information.

In the monitoring of the head of customer service department I learned

the:
How to fill the vouchers and write the dates and amounts in a proper

manner
How to fill the cheques and their appearance in the best and effective

way
Fill the cheques in that particular way that the chances of problems

must be eliminated.
This department also help the customers to account opening

procedure and provide the best services for the customers

This department provides the new cheques to the customer with the

proper filing along with them.

The department of customer service in national bank service industries
branch also help me to how to reissue the cheque in case of any loss.

4.3.6.2 The chequebook issuance at the first time

In customer service department I performed the various activities which I will
described in my next further steps. But at the first I leaned in this department that
how to issue the new cheque book to the account holder. The person or

Page

individual who opens the new account in NBP, than the new cheque book issued
to that customer. He generally signs request for the issuance of the new cheque
book.
4.3.6.3 Cheque book reissuance
Secondly I learned that when a small level of quantity of leaves are left in cheque
book. Then the customer can sign the request for the reissuance of the cheque
book. But there are the conditions which must be fulfilled. The requisition slip
must be filled by the customer and then send the request for the new cheque
book through the NIFT and with the minimum 5 days limit, the customer receive
the cheque book.
The account holder must bring the copy of CNIC if the authority of the requisition
slip is in the hand of any other person.
4.3.6.4 Loss ofcheque book
Thirdly I learned, if the cheque book has lost by the customer than firstly he
should inform to the bank regarding the loss, the bank officer enter all the
account numbers of the cheque in the system and cash of these cheques all over
the Pakistan would be stopped.

4.3.6.5 Deposit slips preparation:

I learned that how to fill the deposit slips in bank. I prepared the vouchers and
deposits slips in the bank. Basically, there are the two types of slips the first one
is bank copy and the other one is the customer copy. The account number and

Page

the proper date is mentioned on the top of the customer copy slip. The exact
amount must be written in words and also in amounts to the customer slip. The
signs of the account holder must be written in the slip of the customer than he
goes to the cashier at the cash counter for the deposit of the amount along with
that slip.
Both the parts are than separated and the bank copy is kept by the banker for
any kind of the future use. Because without this evidence, the amount cannot be
deposited.

4.3.7 ADVANCE DEPARTMENT:

In advances department I spend my mostly time about 3 weeks of my internship.
I mostly deal with the gold items. The borrowers who want to get the loan contact
with the advances department. The authorized persons of the bank gave the
verification about the advance. The forms are generated electronically by the
system. The department head gave me the chance to do the next process. I take
the signs from him and then gave the slip.
Then I made the general entries in the ledgers related to the gold. I made the
entry in ledgers related to its market value, markup rate and the exact amount of
loan with the disclosure of the gold items.
I transfer all the information to the ECIB of the customer and saved it for the next
use. All the information of the customers like CNIC, Age, occupation, Address,
phone number, education and the marital status. The loan statement of the new
customers was also updated by me.
The loan statement which was updated by me contains the information of the
loan amount date of the maturity and also the specific asset. If the information
was fully matched with the CNIC than I renewed it and delete all the loan
information. But if it was not matched than I save it in the system. I transfer all the
information to the data transfer if it may be new or renewed.

Page

Same tasks performed by me in advances department which has been relevant

to the gold and the cash as well. I do many ECBI entries in the system and then
make the general entries in the ledgers; I also made the vouchers related to that
process. Some more tasks which I performed in that department that those
accounts which was renewed I write the renew at the top of the ledger for
eliminating the any kind of problem in the future. Because the extension of the
payment period now increased.
The entry which was held in the loan statement was the maturity date CNIC
number and the amount of loan and the security of the market value.

4.3.8 In government and pension maintenance department:

In government and pension maintenance department, I learned a lot by the head
of the department. He told me the different procedures and calculations of the
pensions. Because I have started my internship after the date of 30 july than
government imposed the 20% increments for the government employees.
The retired government employees who receive their increment they simply
receive their pensions and the officer write down the amount of pension in the
ledgers with the red pen for the record of the bank and the pensioner and the
officer signs the forms and gave it to the pensioner.
The pensioner goes to the cash counter and receives their money. Its also
depend to the pensioner that he can also transfer the amount of pension in their
account by the deposit slip for future use.

4.3.8.1 The case of increment:

As I already discussed that while doing my internship the government applies the
20% increments for the pensioners. The calculation of the pensions make by the
specific formula. The persons who take the medical firstly I did less the medical

Page

from their previous medical amount and after this I apply the 20% increment on
that amount, if I do not less the medical than it may create the increased pension
that is not the right way. So in that incremental pension amount I again add the
medical and then finalize the amount of pension. The people who did not receive
the amount of increments and also the pension from last few months same
procedure applied for that people I add the entire amount and also the increment
amount.
The amount of increment writes on the top of the page and then the amount write
on the slip and further signs by the officer.
4.3.8.2 Ledger Entries:
I also perform the duty of the ledger entries. The pensions of the one month were
written in the box of the present month. But the amount of pensions of more than
one month was written below the each month. The incremental amount was
written at the top of the page for the next months payments.

4.3.9 Different tasks assigned to me as my internship:

I got the very practical experience during my internship program. I visit the
various departments and get the knowledge which will be helpful in my
future career;

Page

Fill the deposit slips and vouchers

Fill the ledgers of governments and make the general entries
Calculate the amount of pensions
Prepare the scrolls for the bills and government
Transfer the information to the ECIB for the security
Updated the loan information
Make the Online payments
Delete all the data of the borrowers from the system whose

accounts has been closed.

Account opening

4.4 Summary of learning:

4.4.1 Skills and qualifications that I have gained in my
internship:
During my internship in national bank I gained very specific type of skills and
knowledge. In my university career I have not any kind of experience of job
environment. I learned that how to work in the pressure in an effective way. I also
know the value of time. During my six weeks tenure the I have got the practical
experience and it also increased my self confidence level.
I learned that how to survive in such kind of environment and I meet with different
types of customers who have the different demands on various tasks. To meeting
with those customers I also enhance my communication skills and it will help me
in future for boost up my personality.
Doing Internship in national bank also taught me that working on the daily basis
eliminate the chances of errors in further future plans.it also help me to apply my
academic knowledge in practical environment.
My working experience also help me in my student career because the mostly
tasks which I done in NBP will be able to me to apply these activities in my
university so I gain the best possible results which obviously help me in
promotion of my self-confidence and also working career in future.

Page

In my starting days of the internship I feel hesitation to interact with the people
but after some time when I spent more days I gained the friendly environment
with the department heads and also with the manager of that branch.

4.4.2 My Responsibilities during My Internship:

I performed the various responsibilities and activities in my internship:

Prepare the slips and vouchers along with their names exact amount

proper date and the account numbers for the different purposes.
Perform the duties in the government department and made the

calculations of the pension with the special formula.

In advances department I mostly spent my time in making ledger entries
and also transfer the information to the ECIB for the record of information

of the borrowers.
Perform the duties that how to open the new account with the help of the

officer
Updated the statement of the loan with the amount of loan and date of the

maturity.
Perform the duties that how to fill the cheques and in case of reissuance
of cheques or loss than what was the procedure.

4.4.3 Effect of Internship in my future career plans:

Now I really feel that during my internship in NBP, I got the basic knowledge
about the banking sector. Now I can get the job easily in any branch because I
have the some experience of work. The University of Gujrat gave me the
opportunity to work out in any organization to enhance my skills and abilities in
my vacations.

Page

So it would be very helpful in my future career because I work practically in the

bank and I know the environment of the bank, I personally very inspired by
practically work in national bank. It is my dream that in my future I got the job in
NBP and show my working activities in that organization.
When I observed the different departments I learned that this task is very easy to
perform but when I personally do the work I taught that it is the very difficult task
But at the end it will just say that I know the practical work in the banking sector
or in any other areas is not the very easy but practically it increased my plans for
future to wore more and in the very difficult condition. That is now basically a
challenge for me and opportunity to work in future in the best way.

4.4.4 Are the internship activities correlated with classroom

knowledge?
Yes the activities of internship are co-related with the knowledge of the
classroom. The knowledge which I gained in the in the class room is the one way
of knowledge and the knowledge which I perform in the internship is another way.
The knowledge which I gathered in my classroom lectures I apply my concepts in
the operation of different banking activities. But there are some different basic
differences from the knowledge of books and also in the practical work.
We learned from the books the theoretical information which I can apply in the
banks for improvement of the skills. In the books or the lectures of the classroom
we generally know how about the formulas which I can apply in the forms and
other various projects.
Some old employees who have not the books knowledge But they perform their
duties well because they have the experience in their particular field. In my
internship I also meet with senior and retired employee of the bank. He gave me
the rules and tasks about the banks that how can I perform when I work in that
branch. I orally can calculate the profits of the banks because I have the
experience of more than 25 years.

Page

But the one think that raise the question he dislike the computerized system and
wants to promote the manual system. I personally not agree with their decision.
The decision which was taken by the bank are not co-related with the classroom
lectures because mostly the teachers already take the decisions about the
students and in the sector of banking the different concepts and decisions made
by the manager or the heads of that particular branch. Because there is not any
kind of combination with the decision of the classrooms and the banking
organizations.

5 Conclusion:
The following are the some experiences which I got in national bank of Pakistan
rasoolnagar branch in my six weeks of internship.

These are the:

Bank has the very important role for every economic country. NBP is the
large commercial bank and take the positive steps for the improvement

and the development of the country.

The different duties I perform in the national bank. Bank provides me the
various tasks and the activities which I never know before my internship

program.
Bank is the profit seeking sector and during my experience in national

bank that due to the well-organized working it earn the higher profit.
I also experienced during my internship in national bank that the

classroom knowledge differ from the bookish knowledge.

I also able to improve my communication skills and confidence while
interacting with the various customers and the employees and staff in the

bank.
I learned a lot that how to behave practically in the practical environment.
I also able to take the decisions in my student career in university.
Internee must obey all the rules and regulations for smoothly perform all
the operational activities.

Page

I also learned that how to face the time management and in case of the

load how to perform the work and tasks.

Perform the activities of the job in the effective way. The person must

commit with the job and deals all the problems with the proper solutions.
I also learn that I should not misbehave with the customers and the staff of
the employees because it will create the dis- satisfaction in the minds of

the employees.
The NBP should bring the new and fresh knowledge that has the
technological training and some experience for the betterment of that

branch.
I taught that the loans given to the large organizations for getting the

higher profit.
The deposits must be taken at the lower rate of interest and take the
advances to big projects at higher rate of interest.

5.1 General Observation Of the national bank of Pakistan

(Rasool Nagar branch):
Due to the increased number of private banks the people has a lot of alternative
options to save their cash and other gold or property files. Now the competition
among the banks is very high. The people have the different choices to take the
services from their concerned bank. So it is the responsibility of the bank to
provide the best services to the customers in an efficient and effective way.

Page

The hiring process of most of the banks is not very appreciable. The persons of
most of the banks even did not know about the use of technological resources.
They have not any kind of training and work in banks just on the reference basis.
The banks who hire the people which has not any kind of confidence and lack of
the verbal skills than it will be the loss for the bank because due to the
competition the other banks take the advantage and motivate the other
customers through their best services and gain the competitive advantage.
The attitude of the private banks towards their employees and customer is out of
class. But the people and the employees of the government institutions
misbehave with the customers. They mostly waste their time and cant perform
their duties well. The mostly customers of the government organizations are not
happy because of the rude behaviors of the staff.
5.1.1 Here are the some problems or critical condition which I

observed in my internship:
The employees have the low efficiency level related to their work. They

were not know that how to perform the task in less time.
There is the shortage of the staff in the service industries branch. The
employees who already work in that branch do a lot of work. So there is
the need for more employees for the development of that branch. Mostly

employees are rotated to fulfill the activities of the other banks.

The employees have to enhance their technological skills and technical
education. The training process must be applied to the employees of the
banks for the development so due to this they can also perform in the

foreign countries effectively.

NBP is running those branches which are not producing income and the
bank bear their expenses. The banks are unable to produce the cost of

expenditures so they must be cut down.

The MCB is on top of the list due to the modern banking facilities. NBP is
far behind so it is the duty of national bank to provide the better banking
facilities to the bank.

Page

The behavior of the employees with the customers is not so good. The
customer most of the time feels disappointed due to the bad and rude

behavior of employees and workers as well.

The customer satisfaction level in national bank of Pakistan is not very

admirable. The customer has to wait for getting the required information.
In NBP there is the poor record and management system. For the certain
record the staff has to struggle hard to find the files. There is the no proper

way for its development and improvement.

There is the need of the promotions for the sincere employees. But the

new and young employee gets the promotion after the long period of time.
The NBP hire the people on the reference basis so the bank should

motivate and hire the people on merit basis.

There are not the proper physical facilities for the customers, in case of
the pensions there is the rush of people and bank have not any kind of
proper sitting arrangement.

5.2 SWOT Analysis:

With the help of the SWOT analysis we can check out the strength, weaknesses
opportunities and the threats. Here I do the SWOT analysis of the national bank
of Pakistan to check the achievements and also some critical conditions.
SWOT analysis was conducted which is as follow:

Strengths
The guaranteed security given by the government of
Pakistan to the national bank.

Page

 Biggest contribution by the semi government and the

government
Agent of the state bank for the currency functions.

Collaboration with the government institutions for the

collection of the taxes
Largest network connections to overseas.
Secured job for the people compared to the other
commercial banks.
Purchase and sales of the prize bonds.
Small and the heavy loans for the large enterprises as well
as for small institutions.
Documented and filling procedure is very easy
Guidance for the experienced people.
Have the special role in economic development
The retention rate of employee is very high

Weaknesses

Properly not utilized the training equipments and technology.

Setup of the banking sector is very formal.
NBP prevails the bureaucratic style.
Lack of the highly educated and skills persons.
Fixed deposits rates are not compatible with the competitors rates.
Foreign currency accounts are more restricted and fewer
customers oriented.
Bank staff has not properly cooperated with the colleges and the
customers.
Poor attitude toward the work of the bank.
Online branches are very limited

Page

Opportunities
The ability to get a larger customer base
Global expansion can be possible because it is an enormous
market, which will be a great and big opportunity in the future

National bank can take the advantage of the online internet banking
facilities.

Providing the Information Technology loans to the university

students and educational institutions in order to boost the Computer
and Management studies in overall the country.

National bank providing the personalized services to the customers

Offering and providing the high deposit rates and reduce the high
lending rates in the country.

Offering the big loans to the large projects and the welfare
institutions for creating the good image in the minds of the general
public.

Threats

Permanently changing the technology in the banking areas.

The uncertainty of the different banking organizations.
Shows the competition from the operations of the lower prices
Failure of the different products and the customers due to the nonacceptance of the customers.
Boosting competitiveness in the banking industry.

Advancement of the bad debts

The government borrowings are very frequent
Lack of economic stability in the country.

Page

6 Recommendations
Doing my internship in national bank I have experienced some recommendations
for the national bank which would be helpful for the national bank in becoming
the world class bank in the future.
As I already discussed some problems which I faced in my internship. But the
following are the some recommendation for the improvement of the infrastructure
of the organization. The bank must follow the given steps for facing the
competitiveness in the whole country.

The bank should need to satisfy the employees through giving the
rewards. A happy and satisfied employee delivers more than the dis
satisfied customers. The bank should gave the salaries at the fixed time

and do the promotions on the sincerity basis.

Selection of the employees must be through the media and newspaper so

the better and qualified employees can be formulated.

The NBP Rasool Nagar branch mostly done the work by manual system,
so there is need to adopt the new technologies like computerized system

must be adopted.
The bank must investigate the borrower while lending. The financial
conditions of the borrowers must be investigated that in the future he will
be able to repay the money or not. Loans must be given to the well

reputed organizations because the risk of loss can be eliminated.

Most of the officers in the national bank have the lack of training of using
the technological tools. Present training program must be improved for
improving the efficiency of the officers and the staff as well. The old and
ineffective employees of the organization are merely a burden for the bank
because of its high cost.

Page

The bank will definitely get the benefits if it improves their working
environment through providing the friendly environment. As it enhances
the level of trust and the sincerity. It also helps to improve the production

of the bank.
The promotion must be given on merit. The banks mostly gave the
promotion to the experienced staff that will create the dis satisfaction in
the minds of the new employees. It may also create the destructive

condition in that particular branch.

Special attention should be given to the employees behavior towards the
customer because without the customers the bank worth nothing. The
bank should need to behave with the customers in a very inspiring way. It
will create the positive impact in the minds of the public which ultimately

higher your profit level.

The bank should prepare the separate counter for the collection of the
utility bills and the other different nature of bills.
The officers must think about these steps to satisfy their customers.

References
Mr. MukhtarAhmed Butt(Manager)
http://nbp.com.pk/AboutUs/index.aspx
http://www.scribd.com/doc/28186321/1/History-of-National-Bank-of-Pakistan
http://www.privatisation.gov.pk/Finance/Nbp.htm
http://bankofpakistan.blogspot.com/2011/02/brief-history-of-nbp.html

Page

http://www.scribd.com/doc/63414587/2/BRIEF-HISTORY-OF-NATIONAL-BANKOF-PAKISTAN
http://www.scribd.com/doc/52393873/14/Product-lines
http://www.nbp.com.pk/Services/index.aspx
http://en.wikipedia.org/wiki/National_Ba...
http://www.scribd.com/doc/47811601/Intro...
http://www.hktdc.com/sourcing/hk_company...
Seniors and other friends

Page