ACKNOWLEDGMENT

FIRST OF ALL I WOULD LIKE TO THANKS ALLAH ON THIS OCCASION

I also want to show my gratitude to my loving parents and humble teachers who
make me able to be at this position

I also thankful to all the staff members at MCB LATIFABAD UNIT NO :7

BRANCH HYDERABAD .

SYEDA FOZIA SHAH

BBA
CHAPTER NO :1 INTRODUCTION

INTRODUCTION:
Chapter one is about introduction of report. As
a part of requirement of BBA degree 6 weeks internship is necessary for student.
This chapter includes background, purpose, scope, objectives and methodology of
the study. It also includes introduction of the organization.

1.1 INTRODUCTION TO BANKING:

Some authors are of opinion that the word bank is derived from the words “Banco”,
Bancus” or “Banquet” which means “Bench” (Gillani & Sariwal, 1994).
This is attributed to the fact that the Jewish transacted the business of money exchange on
bench in market place. According to Banking Companies Ordinance 1962 “ Banking is
business receiving for lending or investment, of deposits of money, from public repayable
on demand or otherwise and which draw able by cheque, draw and order or otherwise”.
A simple definition of bank is”
“an institution whose debts are widely accepted in settlement of other people’s debt to
each other.”(Gillani & Sariwal, 1994).
OR
An organization usually a corporation ,characterized by a state or federal government
which does most or all of the following functions receives demand deposits, time
deposits, honors instruments drawn on them and pays interest on them , discount notes,
make loans and invest in securities , collect cheque drafts and notes certificates
depositor’s cheque and issues drafts and cashier’s cheques.

1.2 IMPORTANCE OF BANK:

Bank plays an important role in promoting economic development of a country. Bank

provides necessary funds for executive program in the process of economic development.
They collect savings of large masses of people scattered throughout the country, which is
the absence of bank world have remained idle and unproductive. These amounts are
collected, pooled together and made available to commerce and industry for meting the
requirement. This provides finance for successfully carrying on various stages of
production as well as distribution.
Bank stimulate the habit of savings amount people by the security and interest they offer
with these savings which are deposited by people are in position to utilize the deposited
amount more productively.
The bank increased the transaction capacity of the customers by advancing loans when
they require for additional funds to finance their expanded program of transaction.

1.3 HISTORY OF BANKING IN PAKISTAN:

At the time of independence on 14th august 1947, there were 487 branches of all banks
operating in the new territory of Pakistan. After 1 year 292 branches windup their
business in Pakistan and remaining 195 branches restricted their banking operating at a
minimum level.
Up to 1948’s half year imperial bank of India also worked as an agent of Govt: of
Pakistan & reserve bank of India.

On 1st July Quaid-e- Azam Muhammad Ali Jinnah inaugurated the state bank of Pakistan
by passing banking act in December 1948 with the power to control the operation of
banking companies in Pakistan with extensive power to work as central bank of Pakistan.
The important task of SBP was creating a sound banking system in country. For the help
of SBP court the Govt: of Pakistan set up a new bank namely National Bank of Pakistan,
to serve as agent of Pakistan.