INTERNSHIP REPORT HRMI 619

NATIONAL BANK OF PAKISTAN

Submitted By:
NAME : ATIQA FIRDOSE
ID: MC 10040732
SESSION: SPRING 2015
DATE : 31JULY,2015

Department of Management Sciences,

Virtual University of Pakistan

Page 1

Letter of Undertaking

Page 2

Page 3

Scanned Copy of Internship Certificate

Page 4

Page 5

Dedication

I dedicate my report to my parents and my respected instructor.

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Acknowledgment
First of all I am thankful to Almighty Allah who enables me to complete this task.
I would like to thank my course instructor for providing me guidance to complete this project.
I am grateful to my friends and all those person who help me and provide me information.
I am thankful to NBP staff for their cooperation to complete this report.

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Executive Summery
National Bank of Pakistan is one of the largest commercial bank of Pakistan. Its head office is in
Karachi. It has1358 domestic branches and 23 branches overseas.
it has diversified its business portfolio and today is 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 countrys small and
medium enterprises and at the same fulfilling its local responsibilities as corporate citizen.
NBP has offloaded 23.2 recent share in the stock market. it is now listed on the Karachi, Lahore,
and Islamabad stock Exchanges.
National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It
has developed a wide range of consumer products, to enhance business and cater to the different
segments of society. Some schemes have been specifically designed for the low to middle
income segments of the population. These include NBP Advance Salary, NBP Saiban, NBP
Kisan Dost, NBP Cash n Gold.
In 2002 the Bank signed an agreement with Western Union for expanding the base for
documented remittances. More recently it has started Electronic Home Remittances Project. This
project introduces technology based system to handle inward remittances efficiently, by ensuring
that the Bank's branches keep a track of the remittance received from abroad till its final receipt.
Bank has been signing different agreements with other leading players in the remittance field for
ensuring that remittance services are available to most of the overseas Pakistanis.
A number of initiatives have been taken, in terms of institutional restructuring, changes in the
field structure, in policies and procedures, in internal control systems with special emphasis on
corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the
up-gradation of the IT infrastructure and developing the human resources.
This report briefly discuss the functions of HR department in NBP. it also includes suggestions
and point out erase of improvement, in this report I have briefly discuss the products of NBP,
history and the nature of organization and services provided by bank.
Organization hierarchy chart has also been presented. Introduction and detail of each department
is provided. there are comments on organizational structure.
There is brief introduction of department where I have worked. There is detailed description of
HR department functions and activities.
Critical analysis and SWOT analysis of organization has also been provided. There is a
conclusion and recommendations to improve services in the end of report.

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TABLE OF CONTENTS
Letter of Undertaking
Scanned copy of internship report
Dedication
Acknowledgement
Executive summery
Overview of the organization
a) Brief introduction of the organization
b) Head office address
c) Product lines
d) Competitors
Organizational structure
i.
Organizational hierarchy chart
ii.
Comments on the organizational structure
Internship activity plan
1. Brief introduction of the organization
2. Number of employees
3. Starting and ending dates of internship
4. Names of the departments of training
Training program
Analysis of HR Function
a. Human resource planning and forecasting
b. Employees recruitment & planning
c. Training & development
d. Performance management
e. Employee compensation & benefits
f. Organizational career management
g. Labor management relations
Critical analysis
SWOT Analysis
Conclusion
Recommendations
Reference & sources
Annexes

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a. OVERVIEW OF THE ORGANIZATION

Brief Introduction
National Bank of Pakistan was established on November 9, 1949 under the National Bank of
Pakistan Ordinance, 1949 in order to cope with the crisis conditions which were developed after
trade deadlock with India and devaluation of Indian Rupee in 1949. Initially the Bank was
established with the objective to extend credit to the agriculture sector. The normal procedure of
establishing a banking company under the Companies Law was set aside and the Bank was
established through the promulgation of an Ordinance, due to the crisis situation that had
developed with regard to financing of jute trade. The Bank commenced its operations from
November 20, 1949 at six important jute centers in the then, East Pakistan and directed its
resources in financing of jute crop. The Banks Karachi and Lahore offices were subsequently
opened in December 1949. The National Bank of Pakistan came forward to establish its offices
in the Cotton growing areas and extended credit facilities liberally in order to restore stability to
the market. In 1951, the country was once again faced with a crisis in the cotton trade when
prices was crashed and touched the lowest level since independence following the cessation of
hostilities in Korea. The bank in collaboration with the cotton board provided the necessary
Credit facilities to the trade and the crisis was tided over. The nature of responsibilities of the
Bank is different and unique from other banks/financial institutions. The Bank acts as the agent
to the State Bank of Pakistan for handling Provincial/Federal Government Receipts and
Payments on their behalf. The Bank has also played an important role in financing the countrys
growing trade, which has expanded through the years as diversification took place.
The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The bank operates
1249(2008) branches in Pakistan and 22(2008) overseas branches.
National bank of Pakistan maintains its position as Pakistans premier bank. It is the major
business partner of government of Pakistan with special emphasis on fostering Pakistans growth
aggressive and balanced lending policies, technologically oriented products and services offered
through its large network of branches locally, internationally and representative offices.
Under a trust Deed, the bank also provides services as trustee to National Investment Trust (NIT)
including safe custody of securities on behalf of
NIT. The National Bank of Pakistan has assets worth Rupees 737976.44 million on September
30, 2008.
National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It
has developed a wide range of consumer products, to enhance business and cater to the different
segments of society. Some schemes have been specifically designed for the low to middle
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income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP
Saibaan, NBP Kisan Dost, and NBP Cash n Gold.
The National Bank of Pakistan has implemented special credit schemes like small finance for
agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self
employment scheme for unemployed persons, public transport scheme. The Bank has expanded
its range of products and services to include Shariah Compliant Islamic Banking products. For
the promotion of literature, NBP recently initiated the Annual Awards for Excellence in
Literature. NBP will confer annual awards to the best books in Urdu and in all prominent
regional languages published during the defined period. Patronage from NBP would help
creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan.
It has provided generously to philanthropic causes whenever the need arose.
It has taken various measures to facilitate overseas Pakistanis to send their remittances in a
convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for
expanding the base for documented remittances. More recently it has started Electronic Home
Remittances Project. This project introduces technology based system to handle inward
remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance
received from abroad till its final receipt.
A number of initiatives have been taken, in terms of institutional restructuring, changes in the
field structure, in policies and procedures, in internal control systems with special emphasis on
corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the
up gradation of the IT infrastructure and developing the human resources.
National Bank has earned recognition and numerous awards internationally. It has been the
recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine,
the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and 2007, Global Finance,
Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kisan Time
Awards 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest
banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been
presented a Recognition Award 2004 for having a Gender Sensitive Management by
WEBCOP AASHA besides other awards.
The precise summary of National Bank of Pakistan regarding its countrywide and overseas
operations is as fallows:
1949 National Bank of Pakistan (NBP) was established under the National Bank of Pakistan
Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent of the Central Bank
wherever the State Bank did not have its own Branch. It also undertook Government Treasury
operations. Its first branches were in jute growing areas in East Pakistan. Offices in Karachi and
Lahore followed.
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1950 NBP established a branch in Jeddah, Saudi Arabia.

The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4, 1947 by
the former Bahawalpur State
1955 By this time NBP had branches in London and Calcutta.
1957 NBP established a branch in Baghdad, Iraq.
1962 NBP established a branch in Dar-es-Salaam, Tanganyika.
1964 The Iraqi government nationalized NBP's Baghdad branch.
1965 The Indian government seized the Calcutta branch on the outbreak of hostilities
between India and Pakistan.
1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.
1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong.
At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern
Mercantile Bank and with Eastern Bank Corporation.
1974 The government of Pakistan nationalized NBP. As part of the concomitant
consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947).
1977 NBP opened an offshore brain Cairo.
1994 NBP amalgamated Mehran Bank (est. 1991).
1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.
2000 NBP opened a representative office in Almaty, Kazakhstan.
2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks
to operate in the UK. NBP and United Bank agreed to merge their operations to form
Pakistan International Bank, of which NBP would own 45% and United Bank 55%.
2003 NBP received permission to open a branch in Afghanistan.

2005 NBP closed its offshore branch in Cairo.

VISION:
To be recognized as a leader and a brand synonymous with trust, highest standards of service
quality, international best practices and social responsibility.
MISSION:
Institutionalizing a merit and performance culture
Creating a distinctive brand identity by providing the highest standards of services
Adopting the best international management practices
Maximizing stakeholders value
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 Discharging our responsibility as a good corporate citizen of Pakistan and in countries where
we operate
CORE VALUES
Highest standards of Integrity
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
BRANCH NETWORK OF NATIONAL BANK OF PAKISTAN
National bank of Pakistan has established its branch network in all over the country. Banks role
apart from having a vast branch network bank is at the forefront in the acquisition and
application of new technologies in every aspect of its banking facilities. It has acquired leased
telephone lines foe online banking. the bank has 12 regional computer centers to cover various
online and batch system requirements of branches and controlling offices. Presently the national
bank of Pakistan is divided into various groups headed by SEVPs/EVPs.
The branch network of National Bank of Pakistan is divided into following categories

ATM network ( Total ATMs 500 )

Domestic network ( 1358 branches )
Islamic network ( 49 branches )
Overseas network ( 23 branches )
Swift network ( 14 branches )
Customer facilitation centers ( 6centers )

Senior Management

Syed Ahmad Iqbl Ashraf

President,nbp
Nausherwan Adil
SEVP & Group Chief Operations Group
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Mudassir H. Khan
SEVP & Group Chief, Commercial & Retail Banking Group
Nusrat Vohra
SEVP & Group Chief, Treasury Management Group
Khalid Bin Shaheen
SEVP & Group Chief, Global Home Remittance Management Group/Corporate
Communication Division
Tariq Jamali
SEVP & Group Chief, Logistics Support, Security & Engineering Group
Kausar Iqbal Malik
SEVP & Group Chief, Compliance Group
Masood Karim Shaikh
SEVP & Group Chief, Overseas Banking Group
Asif Hassan
SEVP & Group Chief, Audit & Inspection Group
Wajahat A. Baqai
SEVP & Group Chief, Credit Management Group
Aamir Sattar
SEVP & CFO, Financial Control Division
Sultana Naheed
SEVP & Group Chief, Risk Management Group
Qamar Husain
SEVP & Divisional Head, Organization Development & Training Division
Akbar Hasan Khan
EVP & Head, Corporate & Investment Banking Group
Zaheer Baig
EVP & Head (A), Human Resources Management and Administration Group
Sahibzada Rafat Raoof Ali Khan
EVP & Head, Assets Recovery Group
Khawaja Muhammad Aminul Azam
EVP & Head, Islamic Banking Group
Raza Mohsin Qizilbash
EVP - Divisional Head, Legal Division
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Mahmood Siddique
EVP, Divisional Head & CIO, IT Division
Shaharyar Qaiserani
EVP & Divisional Head, Agriculture & Business Development Division
S.M. Ali Zamin
EVP, Secretary Board of Directors & Secretary Credit Committees
Mufti Ehsan Waquar Ahmad
Shariah Advisor
Mirza Babur Baig
EVP & Principal Staff Officer(PSO) to the President

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b. Head Office Address

National Bank Of Pakistan
Head office
NBP Building, I.Ichundrigar Raod
Karachi, Pakistan .

C. Product Lines:
Premium Amdni
Premium saver
Saiban
Advance Salary
Cash Card
Investor advantage
Cash n Gold
Kisan Dost
Pak Remit

Premium Amdni:
Earn up to 8.35 % p.a. +
Minimum deposit of Rs. 20,000/- with maximum balance of Rs. 10 million for 5 years
Free Demand Draft, Pay Order and Cheque Book*
Convenience of NBP online Aasan Banking (for online banking customers)
Free NBP Cash Card (ATM+Debit)
Running finance facility up to 90%
Profit paid every month as follows:

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Year

Profit Rates (%) ***

1st

7.95 p.a.

2nd

8.05 p.a.

3rd

8.15 p.a.

4th

8.25 p.a.

5th

8.35 p.a.

Premium Saver Account:

Earn up to 5.5% p.a. +.
Maximum balance of Rs. 1 million.
Free NBP Cash Card (ATM + Debit).
Convenience of NBP Online Aasan Banking (for online banking customers).

Saiban:
Home Financing
Home Purchase
Home Construction
Home Renovation
Purchase of Land + Construction
Balance Transfer Facility (BTF)

Advance Salary:
Personal loan
Avail financing upto Rs. 1 million against your salary.
Lowest Mark-up Rate
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 Easy installments of upto 60 months at your choice.

Quick processing and fast disbursement.
No minimum income, collateral & insurance charges required
For permanent employees of Government, Semi Government and autonomous bodies receiving
salaries through NBP

Cash n Gold:
Ready Cash Against Gold*
Rate of mark-up 15.50% p.a.
Facility of Rs. 30,000 against each 10 gms of net contents of gold
No minimum income requirement
Repayment after one year
One year Rollover tenure
Only gold ornaments acceptable
Weight and quality of gold to be determined by NBP's appointed scruffs
No penalty for early repayment
For education, marriage, consumer and other domestic needs
No maximum limits of cash

Cash Card:
ATM + Debit Card
Use it as an ATM in any of the ATMs in Pakistan
Use it as Debit Card in any of the outlets with ORIX POS machine across nationwide.
Cash withdrawal up to Rs. 20,000/- per day
Account Balance Enquiry
Mini Statement (Only at NBP ATM)
PIN Change facility (Only at NBP ATM

Investor Advantage:

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Financing Facility for Stock Investors

Comfortable environment for trading
No security requirement, except for the customers equity
Customers equity freely available for investment
Equity acceptable in cash or approved shares)

Kisan Dost:

Agriculture Farming Program

Competitive mark-up rate.
Quick & easy processing.
Provision of technical guidance to farmers at their doorstep.
Wide range of financing schemes for farmers.
Finance facility is also available for landless farmers.
Financing available against Pass Book, Residential / Commercial property, Gold ornaments and
paper security.
Loan facility on revolving basis for three years (renewable on yearly basis without obtention of
fresh documentation and approval)

Pak Remit:

PakRemit is an internet based Home Remittance Service.

Remitters in USA can log on to our user friendly website, www.pakremit.com and easily remit
funds to Pakistan from the comfort of their homes, in a matter of minutes.

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The service is fully secure with advance encryption application and is available for use 24 hours
a day, 7 days a week. Fees and exchange rate have been set at competitive levels and the
remitters have the ability to track delivery of funds as well.

d. Competitors

Faysal Bank
Askari Bank
United Bank Limited
Bank AL-Falah
Bank of Punjab
Standard Chartered
Muslim Commercial Bank
Habib Bank Limited
Allied Bank Limited
First women Bank
National Savings
Prime Bank
PICIC Commercial Bank

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Organizational structure

a. Organizational hierarchy chart

CHAIRMAN & PRESIDENT

Board, CORP. AFFAIRS, PRIVATE&OPERATE COMMITEE
Audit & Inspection
Group

Operations
Group

Credit/risk
management

Gropu

Audit & Inspection Group

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Compliance
Group

HR Mnag.& Admin
Group

Operations Group

Audit & Inspection Group

Treasury Settlement

Logistic support &

security

Administration
Monitoring &
Budget &
Evaluation
Training
Customer service &
Govt. support

System & Secretarial

Support

Engineering (north &

south)
Internal audit&
Inspection

Core Banking
Application Support
EDP Audit &
Automation

Retail Products
Support

Regional Audit
Offices

Credit/risk management group

Credit/risk management group

Risk review &

Industrial Research
Division

Credit Monitoring

Credit Management
Service & CoOrdination

Student Loan Scheme

Credit
policy/procedure &
SME Credit

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Corp. Commercial,
Agri., & Consumer
Credit

HR Management & Admin Group

HR Management & Admin Group

HR & Organizational
Development

HR-Policies &
Project Division

Training Division

Staff Loan & Welfare

Division

Personal & Ind.

Relation Division

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Employees Benefist
Division

Recruitment &
Placement Division

B. Comments on the Organizational Structure

NBP has a complex product structure, more emphasis on relationship management and provision
of a high quality and responsive customer service. Commercial and retail banking group provide
its services regional offices, branches network & sale team.
National bank treasury is currently regarded as market leader in both foreign exchange and
rupee dominated products because of its emphasis on quality.
NBP overseas operations are segregated into developed and developing countries for synergy of
operating environment.
A team of operation group is working to change the face of this bank by way of improving its
physical outlook, effective implementation of its systems and controls.
IT infrastructure ensure adequate level of resource deployment through hiring specialists and
outsourcing for critical support function within IT group
HR Management group focuses on compensation structure and rationalize existing staff based on
skill set experience and customer aspirations.
An exercise different function, management has powers as well as restrictions to act and behave
according to the instructions provided and take into account when these instructions were amended. To
check the proper implementation BOARD has made a committee named as STEERING
COMMITTEE that will check and respond to BOARD.
To check expenses are under budget, Regional Management Committee on monthly
basis review all the expenses and a statement thereof to be sent to the Chief of Operations Group,
Head Office

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INTERNSHIP ACTIVITY PLAN

a. INTRODUCTION OF THE BRANCH:

National Bank of Pakistan was established under the National Bank of Pakistan Ordinance, 1949
and is
listed on all the stock exchanges in Pakistan. It is registered and head office is situated at I.I.
Chundrigar Road, Karachi. The bank is engaged in providing commercial banking and related
services in Pakistan and overseas.
Head office of the National Bank of Pakistan is located in Karachi. Head office controls and
monitors all the activities of the bank. The President of the National Bank of Pakistan seats the
Head office. A secretariat is established to assist the president in the head office. The head office
is divided into twelve Departments. A Group Chief controls a Group.
I have completed my internship from National Bank of Pakistans Regional office Civil Lines
Sargodha.
Branch code is 0397. Phone number is 048-9230467, fax 048-9230468.
Bank has following departments.

Clearing department
Remittance department
Deposit section
Computer department
Advances department
Accounts department
Cash department
Bills department
Pension disbursement department
Credit section

a. Number of employees
Regional office civil lines have 41 employees in this office.

b. Starting and Ending dates of Internship

Duration of my internship program was 8 weeks. I started my internship from 1 st June, 2015 and
ending date is 30th July, 2015.

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c. Names of the Departments of Training

1.
2.
3.
4.

Bills Department
Clearing Section
Credit Section
Deposit Section

I have worked in each department for 2 weeks.

TRAINING PROGRAM
An internship can be of considerable benefit to us. Internships introduces potential future work
environments and students will be able to decide whether these meet their career wishes and
interests. Students also acquire important supplementary skills during an internship and make
contact with potential future employers.
An internship make it easier for us to find work and get off to a good start in our career. In many
sectors, such as the media industries, successful job applicants now need to demonstrate that they
have already completed an internship.
Internships represent a cross-over point between university and career, and will not only help you
in career, but also in planning studies. The experience we gain during an internship will indicate
how we should structure our future studies, particularly when it comes to deciding what aspects
should be focus on. An internship and study focus will thus help establish our individual career
profile
I have selected National Bank of Pakistan for my internship program and here is the detail given
what I observe during my internship.

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INTRODUCTION OF ALL DEPARTMENTS

Bills Department
I have worked in bills department for two weeks. Bills department is responsible for the passing
of Govt. bills pensions, preparing their records, recording the transfer of transactions also,
balancing the cash record & transfer record with cash section.
This section also performs other tasks such as records of P-Pensions, c- pensions, railways
pensions, EOBI, Distt. Bills, central bills, and Punjab bills. After balancing cash, recording
amount in vouchers. It performs following functions.

Collection of utility bills

Collection of dues
Payment of pensions
Payment of Zakat
Payment of salaries

There are also some other functions performed by this department. Which are:
a) Inward bills for Collection
These cheques or bills are collected locally. They are received from outstation branches
banks and parties
b) Outward bills for Collection
Outward bills have following types.
Clean bills:
these are bills drawn on outstation branches, bills sent for collection such as cheques,
drafts or treasury bills.
Documentary bills:
these are the bills collected by the bank on behalf of their customers.
Pay slip:
pay slip is issued by the bank on account of expenditures incurred by the bank and on
account of refund of a payment to a person under certain circumstances.
Pay order:
Pay orders are issued to other banks for collection of make payment said.

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Clearing Section
I have worked for two weeks in this department
The banks act as collecting banks when they send cheques for collection and act as paying
banks when they receive cheques for collection from other banks. There is a clearing system
in banks which enables cheques to be paid or cleared centrally and settlement made for
receivables and payables between the banks.
The state Bank of Pakistan offers a centralized exchange facility which is called Clearing
House. Members of Clearing House are the banks situated in the same city maintain an
account with the SBPs Clearing house. At the clearing house accounts of all the banks are
debited by the total amount of cheques to be collected from other banks and receiving
cheques on their account holders from the other banks.
CREDIT SECTION
The most important activity of the bank is granting of credit to the customer. NBP provides short
term long term financing for domestic and international trade. The following elements are used
for credit selection.
Capacity:
The ability of the borrower to repay the loan and it is assessed by the office so that he will be
able to repay loan in future.
Capital:
The capital of the borrower is assessed in this regard. If assets held by the borrower are liquid
they can easily convertible in cash but if non liquid is used then it is risky to given a loan.
Character:
The loan officers sees the family background mode of living, business nature, habits and moral
reputation before given the loan.
Collateral:
It may consist of stock bonds and bill of exchange. The bank has protect himself from any
discrepancy in the future. They increase the ability of borrower to obtain the funds from the
bank.
Condition:
borrowers economic condition is determined. The economic condition of the borrower effects
the repayment of loan. If condition is favorable then lone is given.

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DEPOSIT SECTION
This department handles the applications of the banks for government deposits, the receipt and
delivery of securities, the calculation and receipt of interest on the deposits, the record of re
deposits and withdrawals, and the records of collateral.
Following types of deposits are offered by National Bank:
1. Current deposit
2. Saving bank deposit
3. Profit and Loss saving account
4. Fixed deposit
5. Call deposit
6. Short notice term deposit
7. Foreign currency deposit
8. Cumulative deposit certificate
9. National income daily account (NIDA)
10. NBP Premium Amdni
Books relating to customers
1. Pay-in-slip
2. Cheque book
3. Pass book
The bank may close the customer account for following reasons:
1.
2.
3.
4.
5.
6.

Notice by a customer
Death of a customer
Insolvency of a customer
Customer/s insanity
By order of court
Unsatisfactory operations

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Analysis of HR Function
A. HR Planning and Forecasting
Human resource planning is a process through which the organization anticipates future
business and environmental forces. Human resources planning assess the manpower
requirement for future period of time. It attempts to provide sufficient manpower required
to perform organizational activities. HR planning is a continuous process which starts
with identification of HR objectives, move through analysis of manpower resources and
ends at appraisal of HR planning.
Determining the human resources required by an organization involves identifying the jobs,
skills and knowledge required by those jobs and the performance level of the current workforce.
Using this data, you can forecast hiring or reorganizing needs for both the short and long term.
Forecasting methods typically includes using past data to predict future staffing. Additionally,
organizations can use survey, benchmarking and modeling techniques to estimate workforce
staffing numbers. Use several methods and cross-check your findings to obtain the most accurate
results.
o HRP Process:
Human resource planning is the process whereby organizations determine the staffing
support they will need to meet business needs and customer demands.
NBP performs HRP process in following steps
Determine the organizational mission
Scan the organizational environment
Set strategic goals
Formulate a strategic plan
o Forecasting HR requirements
An important, yet challenging, element of human resource planning is forecasting demand
for certain types of skills and positions. For instance, in the early 21st century, Internet and
social media skills were in increasing demand. In the health care industry, nursing has long
been an area of high demand.
o Methods to forecast HR needs
Following methods are used to forecast HR needs
a) Zero-base forecasting
b) Bottom-up approach
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c) Simulations
d) Mathematical models
B. Employees recruitment & selection
Recruitment is the process of hiring potential candidates. According to NBP recruitment policy:
candidate must be citizen of Pakistan.
He/she must be a business graduate
He/she should have attained the age of 18 years
Sources of candidates
There are two types of sources
i.

Internal sources

These are internal sources of NBP

a) Promotion from within
b) Job postings
c) Contacts and referrals
ii.
External sources
These are external sources
a)
b)
c)
d)
e)
f)
g)
iii.

Colleges and universities

Community colleges
Unemployed
Older individuals
Competitors
Self- employed workers
Military persons
Employee selection process

Application are invited from the candidates, eligible candidates are called for written test in four
subjects English, computer, general knowledge and mathematics. Candidates who qualify written
test are called for interview. After that candidate have to undergo medical checkup.
Appointed candidates are kept on probation for 9 months. they are sent for a 9 month training to
the Staff College.
a) Training & development
The official and ongoing educational activities within an organization designed to
enhance the fulfillment and performance of employees. Training and
development programs offered by a business might include a variety of
educational techniques and programs that can be attended on a compulsory

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or voluntary basis by staff.

C. Training & need assessment
Following steps are used in training need assessment in bank
Self assessment

b)

Company records
Customer complaints
New technology
Interview with managers
Employee grievances
Customer survey
Observations
Employee development

NBP acquires two basic techniques for training

First is related to the new clients and middle level employees. Second the training for long
term plan. NBP applies on-job and off-job strategies to train its employees.NBP provides prpost training for existing employees.
D. Performance management
1. Setting performance standards & expectations
There are following conditions to consider while setting standards of performance:

They should be based on the job not on the person.

They should be achievable
Should be understood by the
Employees and supervisor should be agree upon it
They should be specific and measurable
Should be time oriented
Should always be written

2. How performance report are written

Employee:
Date hired:
Job title:
Salary:
Date of review:
PERFORMANCE EVALUATION_ INTERACTION WITH CO-WORKERS
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PERFORMANCE EVALUATION_QUALITY OF WORK

ERFORMANCE EVALUATION_ EMPLOYEE OBLIGATON

PERFORMANCE EVALUATION_ ADDITIONAL COMMENTS

Date of next evaluation:

Employee interview

E. Employee compensation & benefit

Types of compensation & benefits
Compensation is the reward an employee receives during his employment period. Employees of
NBP receive compensation and benefits which are followings
Pay: employee receives the money for performing his duties.
Benefit: additional financial rewards rather than basic pay include vacation, holidays and
medical leaves. There are also non financial rewards such excellent working conditions and job
satisfaction. Different types of compensations include commissions, overtime pay, bonuses,
stock shares, house allowance, and medical insurance.

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F. Organizational career management

1. Employee job changes

Job changes are the mobility of employees from one job to other and it includes transfer,
demotion and promotions. This is internal mobility. There is also external mobility which
includes resignation, retirement and termination. In NBP job changes are made according to civil
services rules and regulations.
2. Job changes with the organization
A Job change with the organization includes transfer, promotion and demotion.
Transfer:
transfer refers to a horizontal or lateral movement of an employee from one job to another.
Purpose of transfer includes organizational needs, adjust of work force, utilize employees and to
satisfy employee needs.
There are instructions provided that an employee can remain posted in one unit for up to 3 years
and in a division for up to 6 years.NBP has develops following transferring policy.
i.
ii.
iii.
iv.
v.
vi.

All transfers involving change in office up to OG-3 shall be made by the director
administrator, OG-4 and above with the approval of managing director.
Employees on promotion as OG-4 and above shall invariably be transferred from the
department where they were working before their promotions.
The seniority list of all OD-1 and above will be maintained on an all Pakistan bases.
An employee transfer from one department to another shall be allowed to seek his posting
back to his parent office or to the office of his choice.
The chief manager shall not remain posted at one office for the period of more than 3
years.
Employee shortage at an office because of review of staff position will be made good
after calling options from the interested employees of the bank.

Promotion:
A promotion is advancement of an employee to a higher post carrying greater responsibility,
higher status and better salary. Parameters of promotion policy of NBP are following.
i. Qualification
ii.Length of service
iii.Standard of service
While formulating the merit based policy introduced in 1999, the considered opinion was that
separate point should not be prescribed for qualification and length service. The other
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consideration for such views was that in case the employee had increased his qualification for his
batter performance compared to others then the said qualification would be reflected on his
performance.
Demotion:
demotion is sometimes the result of disciplinary action by an employer or for reason unrelated to
the employee such as change in the financial circumstances of the business. NBP employees can
be demoted for violating the rules of the bank. An employee may be demoted to being laid off,
when the bank is facing crisis.
A notice is send to the employee while being demoted which describe the specific reason of
demotion. An employee is demoted when he is not performing his duties efficiently and when it
is requested by the employee. The other reasons are return of other employee to his duty and
replaced by an employee for being more senior.
Separations:
An employees separation occurs in NBP when he is ceases to be a member of National bank.
Separations include followings:

Layoff

A layoff occurs when bank temporarily suspend the employees contract and a laid off employee
maybe called back to work. Layoff also occurs when there is surplus of employees it can be
permanent or temporary.

Termination

Termination is an action taken by employer to end the employer/employee relation. An employee

can be terminated because of his/her illness and inability to work, resignation and dismissal of
the employee. There are some rules which are followed for termination process by bank such as
give the employee written notice, notify general manager, complete the termination form,
forward the completed form to assistant finance office and place o copy of form on employees
file.
There are also some obligations on employee in case of termination such as give the written
notice to supervisor, notify the general manager about termination decision and its specific
reasons, complete the form and forward it to finance officer and place a copy in personal file.

Resignation

While resigning it should be treated as business transaction a transaction that will benefit career.
NBP resignation process starts when a receipt of resignation is received. Then it is forward to the
zonal manager. When a member resigns he inform their line manager receives and forward
resignation to HR. HR office receives resignation and send notice to payroll office, the office
process the working on final salary payment to employee.
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Retirement

When a person choose to leave the work force is called retirement. NBP follows a specific
process for retirement of employees. This includes a written notice from HR department to the
line manager for retirement date. Line manager sends notice to employee. Employees choose to
retire at 65.
G. Labor management relations
NBP has a corporate but pleasant environment for its work force their satisfaction level is good.
It has established a level of cooperation between its work force and management.
their opinions are to be taken in account and their needs are also to be fulfilled.

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CRITICAL ANALYSIS
NBP is playing a key role in financing and developmental activities to help the growth of
economy. But in my opinion there are some flaws in its operations and infrastructure.
First of all there is a red tape and nepotism culture and corruption whish cause to effect its
overall image in corporate environment.
There is no doubt its an IT era and a very efficient IT infrastructure is needed to be develop in
NBP. There is a huge amount of work force of bank which is not able to cope with todays IT
challenges. Its a big drawback of this bank.
There is not sufficient amount of staff in some departments.
Bank also lacks facilities necessary to satisfy visiting customers.
There are lots of problems for pensioners as they are old enough and there are no proper facilities
for them. They have to wait in long queue to collect their pensions.
In my opinion bank staff needs training especially the customer care staff to deal customers and
improve relation with them as it is the heart of an organization.

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SWOT ANALYSIS
SWOT Analysis stands for an organizations strengths, weakness, opportunities and threats. It is
the evaluation of organization as a whole. As strength and weakness are internal factors while
threats and opportunities are refer to as external environment.
STRENGTHS:
Following are the strengths of National Bank of Pakistan.

NBP holds a vast branch network of 1350+ branches in Pakistan.

NBP is one of the largest financial institution of Pakistan and enjoys larges deposit.
NBP is a progressive and efficient institution and holds wide range of consumer products.
The Bank has an independent Internal Audit & Inspection function in the name of Audit
& Inspection Group with three Regional Audit & Inspection O-ces that conduct audit of
branches, Regions, Subsidiaries.
Banks Management has established and is managing an adequate and effective system of
Internal Control which encompasses the policies, procedures processes and tasks as
approved by the Board of Directors.
The bank has developed a comprehensive credit policy document which is regularly
updated to bring further re-nement in credit rules & procedures with the changing
requirements.
During 2014, 400 plus branches infrastructure was equipped with connectivity and
equipment to facilitate customers with fast processing. NBP is one of the -rst banks to
implement latest technology by procuring top end IBM Power 8 machine that has
resulted in better customer services.
Bank has again recorded substantial gains in excess of Rs. 8.9 billion in government
securities and equity market in the year 2014 that transcends last years gains by over
125%.

WEEKNESSES:
NBP has following weaknesses especially in their management:

Management needs better training programs.

Management is much formal.
It lacks managerial leadership.
Managerial policies are not up to the mark.
There is a lack of business communication in management.
The quality of bank infrastructure is compromised as compared to other banks.
There is a lack of benchmarking for productivity improvement.
A lot of development is required in major sectors of bank.
Branches of NBP have less number of employees then required.
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The staff of bank is not trained according to their assigned duties.

Bank has not adopted much of modern banking.
There is a long and complex procedure for opening an account in bank.
The procedure of applying for debt is also complex.
IT department needs huge amount of improvement.

OPPERTUNITIES:

The bank has great opportunities in IT sector as its an IT era so more emphasis should
give to this sector for competitive advantage.
Commercial & retail banking is the largest contribution towards banks profitability so
bank should pay attention towards commercial financing, SME financing, agriculture
financing, and consumer financing.
Bank can expand its business in foreign countries to gain more profits and business
volume.

THEATS:
NBP is facing following threats

NBPs major threat is its competitors as they have evolved their basic infrastructure and
decentralized their operations.
NBP staff is not highly educated especially in IT field, they are not much aware of latest
technology which is a big threat.
Staff of NBP is not trained enough to provide better customer care and customer
complaints are ignored.
There is high level of unsatisfaction of customers which is a big threat to lose customers.

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Conclusion
National bank of Pakistan is premier bank and play key role in economic growth of country.
The bank has inefficient recovery system which is major drawback of bank.
Bank is providing loans for development of industry, trade and commerce.
bank has promoted agriculture by small borrowing to formers.
The NBP is able to attract large amount of deposits through its large number
of branches all over the country and thus is able to provide large amount of loans to different
sectors
NBP employees moral is not high as compared to others.

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Recommendations
There are following recommendations according to my opinion

Bank should improve its training programs and procedure to enhance capabilities of their
work force.
Bank should also provide support to micro, small and medium enterprise it will reduce
unemployment, and help to create equitable distribution of resources
NBP should design products and services to enhance economic growth.
Bank should monitor the impacts of its products on the environment and common wealth
of people.
Bank should introduce a framework for consolidated supervision and organize the
regulatory authority to allow better financial control.
Bank should improve its incentive programs and develop result oriented training process.
Bank should also develop new soft ware and improve its IT infrastructure to cope with
todays IT challenges.
NBP should discourage red tape and nepotism culture.

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Reference & sources used

I have visited following links to gather data for my report.

https://www.nbp.com.pk/FinancialStatements/AnnualReport2014/Directors-Report-2014
https://www.nbp.com.pk/IraFiles/Industry-Ratings-2015.pdf
https://www.nbp.com.pk/TENDER/Evaluations.aspx?e=50
https://www.nbp.com.pk/FinancialStatements/AnReport2014.aspx
NBP Annual Report 2015

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Annexes

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