INTERNSHIP REPORT ON

NATIONAL BANK OF PAKISTAN

MAIN BRANCH MANSEHRA (0364)

BY

ISRAR AHMED

ROLL NO 28719

BBA (HONS) FINANCE

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

Session 2012-2016
 INTERNSHIP REPORT ON
NATIONAL BANK OF PAKISTAN
MAIN BRANCH MANSEHRA (0364)

Internship report is submitted to the Hazara University in partial

fulfillment of the requirements for the degree of Bachelor of Business
Administration. (Finance)

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

Session 2012-2016
 APPROVAL SHEET

THE NATIONALANKOF PAKISTAN

SUPERVISED BY:

Name: MAM SAIRA AWAN

Designation: LECTURER

Signature:

External Examiner

Signature:

Name:

Designation:

Chairman: ________________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

Session 2012-2016

i
 DEDICATION

Dedicated to my dear parents and teachers

Who are the most precious pearls in the

deep ocean of my heart.

Israr Ahmed

ii
 ACKNOLEGEMENT

For the completion of our report I am oblige to a lot of individuals for their very true
participation that they expanded out to me at different stages. Most importantly issue
that each substitute countenance is the determination of a Report. I am especially
grateful to my supervisor Mam Sira Awan Lecturer of Management Sciences for
bailing me out in the time of understanding. Accompanied by our course and the
execution of my report, I had a true opportunity to gain from his unlimited experience
and huge information.

I am tremendously thankful to staff parts of National Bank of Pakistan Main Branch

Mansehra that they straight and give me important data in regards to my report.

I am also grateful to Mr. Sheryar for creating, printing and bringing this report at the
present shape.

At last I am grateful to the most kind and Almighty Allah who provides me the
quality that I satisfy my responsibility efficiently.

iii
 PREFACE

The internship is an opportunity for students to obtain theoretical knowledge and

practical experience in public and private organizations and use. Practices and
procedures Education is the key to developing the leadership skills of people. Every
organization is look for knowledgeable and efficient leaders who are healthy trained.
This training is an opportunity for students in the Bachelor of Business
Administration (Banking & Finance) during the internship program.

Two months is not sufficient to understand. Activities in organizations, but it was a

great experience to get the idea of the practical world, and taking into account the
limits of the study seems to be a realistic attempt. Internship in NBP was a real
learning experience for me. I have studied and observed the organizational structure,
department transfers, and customer service.

Most prominently is the NBP Main Branch Mansehra staff, mostly the limb
supervisor Mr. Muhammad Rafique, Operation Manager Mr. Aqdas Ali, Accountant,
Haji Naeem help me to get practical learning of distinct capacities of the bank. Also, I
give heartiest on account of my director Mam Saira Awan who helped me in the
documents and organization of this report.

For the finish of our report I am obliged to a lot of those for their awfully intense
association that they reach out to me at special stages. Above all else issue that each
standby countenance is the determination of a Report. I am really thankful to my
supervioser Mam Saira Awam Lecturer of Management Sciences for bailing me out in
time of confusion. In the middle of our course and the completing of my report, I had
a true opportunity to gain from his continuous experience and huge learning.I am very
indebted to the staff central Mainline in Pakistan Mansehra to guide and give me
priceless information in your report.

Finally, I am grateful for the merciful and almighty God who has the power, I did my
job gives me. Effective. I dedicate this humble effort to my Parents, Teachers and
Brothers & Sisters, whose love and support, so for me to reach many success.

iv
 TABLE OF CONTENTS

APPROVAL SHEET .................................................................................................... i

DEDICATION..............................................................................................................ii

ACKNOLEGEMENT................................................................................................ iii

PREFACE .................................................................................................................... iv

CHAPTER 1 ................................................................................................................. 1

INTRODUCTION........................................................................................................ 1

1.1 Background of Study ........................................................................................... 1

1.2 Objective of Study ............................................................................................... 1

1.3 Scope of Study ..................................................................................................... 2

1.4 Research Methods ................................................................................................ 2

1.5 Barriers ................................................................................................................. 2

1.6 Research Organization ......................................................................................... 3

CHAPTER 2 ................................................................................................................. 5

NBP HISTORY ............................................................................................................ 5

2.1 Banking ................................................................................................................ 5

2.2 History Banking in Pakistan ................................................................................ 6

2.3 History and Development of the NBP ................................................................. 7

2.4 Nationalization ..................................................................................................... 8

2.5 The management of the bank ............................................................................... 8

2.6 NBP customers..................................................................................................... 8

v
CHAPTER 3 ............................................................................................................... 11

ORGANIZATIONAL REVIEW .............................................................................. 11

3.1 The organizational structure NBP ...................................................................... 11

3.2 Regional Management Committee: ................................................................... 14

3.3 Manager ............................................................................................................. 15

3.4 Director of Operations ....................................................................................... 16

3.5 Awards of NBP Main Branch Mansehra ........................................................... 17

3.5.1 Unmatched Banking Facilities: ................................................................... 17

3.6 Organizational Structure of NBP Main Branch Mansehra. ............................... 18

3.7 Current Employees Hierarchy of NBP Main Branch Mansehra. ....................... 19

CHAPTER 4 ............................................................................................................... 20

FINANCIAL ANALYSIS .......................................................................................... 20

4.1 National Bank of Pakistan three years Performance ........................................ 20

4.2 Ratio Analysis .................................................................................................... 26

4.3 Parties Interested In Ratio Analysis ................................................................... 26

4.3.1 Creditors ...................................................................................................... 26

4.3.2 Providers of long-term debt ........................................................................ 26

4.3.3 Investors ...................................................................................................... 27

4.3.4 Management. ............................................................................................... 27

4.4 Ratio Analysis .................................................................................................... 27

4.4.1 Cash Ratio ................................................................................................... 27

vi
 4.4.2 Gross Profit Margin Ratio:.......................................................................... 28

4.4.3 Net Profit Margin: ....................................................................................... 28

4.4.4 Return on equity.......................................................................................... 29

4.4.5 Return on Assets ......................................................................................... 30

4.4.6 Debt to equity.............................................................................................. 30

4.4.7 Debt to Asset ............................................................................................... 31

4.4.8 Assets Turnover Ratio................................................................................. 32

4.4.9 Dividend Yield ............................................................................................ 32

4.5 Financial Perspective ......................................................................................... 33

4.6 SWOT Analysis ................................................................................................. 34

4.6.1 Strengths ..................................................................................................... 34

4.6.2 Weaknesses ................................................................................................. 34

4.6.3 Options ........................................................................................................ 35

4.6.4 Threats......................................................................................................... 35

4.7 Review of Financial Statements......................................................................... 36

CHAPTER 5 ............................................................................................................... 37

RESULTS AND CONCLUSIONS AND.................................................................. 37

IMPLEMENTATIONS ............................................................................................. 37

5.1 Implementation .................................................................................................. 37

5.2 Business Plan Development ............................................................................... 38

5.2.1 Campaigns to open multiple accounts ........................................................ 38

vii
 5.2.2 Campaigns to mobilize deposits ................................................................. 38

5.2.3 Campaigns to increase the share of the company ....................................... 39

5.2.4 Staff Training .............................................................................................. 39

5.3 Market research and analysis plan ..................................................................... 39

5.4 Development of product .................................................................................... 40

5.5 Plans for monitoring and evaluation: ................................................................. 40

5.6 The effectiveness of the evaluation plan ............................................................ 41

5.7 Recruitment Process and Job Description Plan ................................................. 41

5.8 Internship Program levels .................................................................................. 42

5.9 Plan customer loyalty......................................................................................... 42

References ................................................................................................................ 43

viii
 TABLE OF FIGURES

Figure 1 Organizational structure NBP............................................................................. 11

Figure 2 Organizational Structure of NBP Main Branch Mansehra ................................. 18

Figure 3 Employees Hierarchy of NBP Main branch Mansehra ...................................... 19

TABLE OF TABLES

Table 1 Regional programs restructuring ......................................................................... 12

Table 2 Regional Management Committee ...................................................................... 15

Table 4 Three Years Performance .................................................................................... 20

Table 5 Directors' Report on Consolidated Financial Statement ...................................... 21

Table 6 Consolidated Profit and Loss Account ................................................................ 22

Table 7 Consolidated Statement of Comprehensive Income ............................................ 23

Table 8 Cash Ratio ............................................................................................................ 27

Table 10 Net Profit Margin ............................................................................................... 29

Table 11 Return on equity................................................................................................. 29

Table 12 Return on Assets ................................................................................................ 30

Table 13 Debt to equity ratio ............................................................................................ 31

Table 14 Debt to Asset ...................................................................................................... 31

Table 15 Assets Turnover Ratio ....................................................................................... 32

Table 16 Dividend Yield ................................................................................................... 33

ix
 OVERVIEW

The report is intended as an introduction to the NBP and operation and functions
perform by the National Banks of Pakistan.

Banks act as financial mediators for their clients. Banks have an important part in
economic development. National Bank of Pakistan is one of the leading banks and a
leader in Pakistan. The Bank is loyal to providing high quality services in a variety of
fields and promote and hold up the establishment of employee and customer
environment. International standard in the banking system is one of the finest banks in
the Southeast Asian region.

In short, the report consists of a structure and functions of NBP. The report describe
how the different departments of the bank and what their services. The report is based
mainly on secondary sources when the primary data is also used if essential.

There are nine chapters of this report. The first two chapters focus on the commercial
banks in Pakistan and National Bank. The next sections briefly explain the
components of PI and services NBP services. Chapter four explains the purpose and
organization of GDP. Chapter Five defines leadership and structure. In chapter six,
the financial position of the bank analyzed. As can be seen. In the seventh chapter of
the academic picture to explain SWOT analysis of NBP. Last but not least, suggestion
and recommendation to bring development in NBP.

In a serious analysis, it was found that GDP is one of the largest commercial banks in
Pakistan, a network of about 1350 branches in Pakistan. NBP offers a wide range of
products and services that meet people's needs. NBP is loyal to the organization,
which is a distinctive and creative quality of their services.

x
 CHAPTER 1

INTRODUCTION

1.1 Background of Study

Academic necessary requirements of BBA (Banking & Finance) degree is eight

weeks to complete the organization of national / international reputation to develop
students' skills and training to allow student to distinguish about the facts and
practical information of an organization production system, their funds/accounts
system.

Throughout this project understudy must to analyze that whether union & his
individual objectives matches or not. Then again whether work is as per his goals or
not, & it helps us to estimation that whether in future its productive for us to go along
with it or not by determining its career development scope.

Internee having bewilderment learning can overcome and be chosen by

administration. Therefore a significant measure of involvement assets in term of time
and cash must be used on them for their rightful preparing.

One of the finest and most cost-effective methods to want to rent the company's
Bachelor of Business Administration and the right people, schools and interned.

It focus on trying to allow management techniques acquire during their course,

students and the administration to find a answer to the problem of the organization
face. I have completed my internship with Main branch of National Bank of Mansehra
Pakistan.

1.2 Objective of Study

The main objective is to find out about speed up the technical capability to produce
professional approach to confirm. Changing behavior and practical experience in the
banking sector

1
The purpose of this study is to examine, on the basis of the Central Bank of Pakistan.
The use of different theoretical research, in other words, management, finance, etc., in
banking carry out, I study the largely national Pakistan and the main branch of the
Central Bank Mansehra Pakistan. I study in common. I did my best to cover. All
aspect of the industry for this reason, I have work in almost all industrial sectors,
which are collected on a branch.

I'm going to be abridged practical and theoretical introduction and focus on myself to
understand the technical terms concerned in banking practice. However, it is difficult
to fully control and the benefits of work surface area, you can quickly change over
time.

1.3 Scope of Study

This report describe how one of the branches of NBP, which is NBP Mansehra
located in the Mansehra city.

1.4 Research Methods

Write a report, I have the essential information to the State Bank of Pakistan
and also around the stem I have two types of information. These are.

Basic information

Secondary data

1.5 Barriers

Because of the narrow duration of 60 days, it is not possible to cover all areas of the
Bank's research. In adding, the bank area is so large that the long-term promises and
commitment to deeper learning.

Basic information

Secondary data

Setting of primary data, I have a meeting and a method. I asked a number of

professionals, including branch manager and other employees and customers of the

2
company. I also find the main idea of the method. I pragmatic the state of the
industry, working environment, staff, administration and other activities of the bank.

The report focus on two levels: first, at the level of the industry, another organization
as a entire.

Secondary data is collected from the following sources:

1. Interviews

2. Politics and Banking Law Pakistan. By Israr H Siddiqi.

3. Evaluation Annual Report 2014 - 2015

4. manuals Bank

5. Magazines and newspapers

6. Internet

1.6 Research Organization

Section 1

Chapter 1:

In the introduction, the beginning of a research background, purpose, scope,

methodology, limitations and structure of the report address.

Section 11

Chapter 2:

This chapter split ends with to the point history of the banking system in the largely
growth of the banking sector, nationalization of the banking sector in Pakistan, PI
history, mission and goals, tasks the central bank of Pakistan.

Chapter 3:

In this chapter the services of NBP were discussed and the depart mentation of NBP is
explain as well as NBP Mansehra Branch

3
Section III

Chapter4:

It's about the strengths, weaknesses, opportunities and threats to state SWOT analysis
of GDP

4
 CHAPTER 2

NBP HISTORY
2.1 Banking

The bank merely means regular shares in the German word 'BACK' which funds. And
later on started back to "bank". For the first time, the banking system was launch in
2000 BC, the Greek banks have been famous at the time, it was essential to give the
banks and the banks have been establish in the middle of the 12th century Venice and
Geneva medium of replace and guardian of the reserve. Beginning of the modern
banking began in Europe in the 14th century Lombardy the operator must give
progress up to the king, and also act as a custodian of the book.

Placement with banks is almost a chestnut. Ten years of work experience was an
important academic requirements for companies and public administration students.
My natural creativeness I have focused on the qualitative analysis, in difference to the
normal routine.

Picture of banking sector in Pakistan is not so glowing in the world economy. There
are some irregular in recent years, the socio-political crises. Banks are usually require
for most ear foolish politicians and business leaders in our country. Banks are broadly
used as a tool for handling rather than a tool for economic stabilization. The liquidity
disaster in our banks were the direct result of non-performing loans with high crash ad
in our society.

Below these difficult conditions, for generous me a superb opportunity to explore the
way the endurance of a financial institution, while all the others around him drop like
bowling pins. The study focused on the involvement of PI unstable economy and the
urgent need to restructuring the whole smooth scale.

Banks are in fact just as prehistoric as human society ever since man come to
appreciate that currency trading, the importance of money, the need to control or
control is, of course, felt and Babylonians to develop the banking system in the past
2000B. C. protector of the exchange of funds with fixed-rate customers for their
deposits, and also receive the same nourish.

5
Banks lead the economic growth and the erection of many large buildings and
projects, and a number of projects have been simply not possible without
development or progress.

2.2 History Banking in Pakistan

Pakistan's banking history section. At the time of sovereignty the areas now constitute
Pakistan produced food grains and raw materials in India and Pakistan peninsula .is
was almost no industry and raw materials produce were exported to Pakistan. A
commercial bank a agreed, but this was the 487 companies, banks planning areas now
constitute Pakistan .Following the publication of the suggestion independence? Ban
services Pakistan was hit solid, had a serious regularly busy banks to move funds and
accounts.

Banks have moved their residence Pakistan to India. Thus, June 30, 1948, Number of
branches, banks agenda Pakistan reduced form 487 only 195.

In 1946, the year prior to independence, 14 licensed banks have their headquarters in
areas of Pakistan. Ten banks were built-in in West Pakistan and have a total of 472
branches. The other four banks occupied in the East Pakistan and have a total of 137
branches.

There were two Islamic banks in Pakistan, two days prior independence, which was to
be there, while 13 banks Hindus all 14 locally incorporated banks, excluding
Australasian bench was deliberate for.

Plus, if or when he already bank not only Australia had resolute to go out, or if there
is already movement. If you want to create a national banking system Pakistan State
Bank of Pakistan suggested the creation of National Bank of Pakistan 1949. He also
participate in Habib Bank Pakistan consume more network Pakistan timetable banks
prolong to resolve and December 1973 a total of fourteen. Listed commercial banks
operating in the country since continual to grow, and can contain a very important
part of the economy.

6
Bank branches currently cover a very huge part of the economy. In June 1948 West
Pakistan register 81 offices and banks. But in June 1993, the number rise to 7100
crosswise Pakistan.

2.3 History and Development of the NBP

National Bank of Pakistan Foundation November 9, 1949 the stalemate between India
and the deflation of the Indian rupee, Pakistan, India and how the British dismay not
monitor. The intent to set up a bank was to grant the agricultural sector in order to
make possible. Especially jute affects trade funds, the bank go on the solitary agent of
the State Bank or its Pakistan processing revenues and federal and state taxes.

Paid-up capital of the bank is 8154.319 rupees. It has 5.84 percent of the total paid-up
capital of 24 listed banks was Rs.139665.942 million. Paid-up capital of National
Bank location in the numbers three slot in the financial sector as a entire. Standard
Chartered Bank, Crescent Commercial Bank based on the PUC. Rank first and
second, correspondingly, KASB Bank Limited is the final list of paid-in capital
Rs.2521.979 million

PI is his picture and customer insight of the renewal of a branch of a modern bank and
transfer the old branches easier and additional places. Awareness, and awareness is
the key use of the marks SPT. SPT places standard and standardization at all level.

The common score of the NBP to pay up / interest in relation to the size of the income
cap / interest was only 31% compare to 35% previous year. Tiny investors should take
healthier care of commercial banks, counting the National Pakistan Shares PI Rs.23
per share as the train of exceptional commitments.

Well-built franchise and a key potency of the bank's outstanding performance in a

extremely aggressive environment. Profit before tax increased to Rs. 26300000000,
an increase of 37% to Rs. 17.92 in 2005 to Rs. 24.01 In 2006, pre-tax return on equity
of 58% pre-tax return on assets better to 4.3% from 3.4% the last year, and the cost to
income ratio remain 0.32 at the uppermost level.

NBP enlargement is support by our pattern values and spirit of the uppermost
principles of honesty, joint effort and consolidation of a culture of presentation,

7
outstanding service and worth formation for all stakeholders. PI position as one of the
finest players in the market, banks and finance further more investments in the
country in 2006 and has a powerful customer affiliation, customer first built.

In a complicated environment, PI serve as principal performer and manager step in

syndication, consult, and project finance dealings, such as a important augment in the
loan portfolio. Financing and investments that are planned to elevate the bulky
corporate customers. Beleaguered and specialized approach to business share of GDP
in the present and in exacting the formation of novel businesses

2.4 Nationalization

January 1, 1974 the National Bank of Pakistan, along with 13 additional banks were
state-owned in Pakistan frequently by the beginning of Banks (Nationalisation) Order
1974 and the recompense for the acquire shares are held. In the past, the Pakistani
government to the private shareholders 2

2.5 The management of the bank

In 20012, PI get better customer focus, decision-making cover to decrease the mass of
the modification revise technical and business serviceable areas and eliminate
controlling authorities, and the total number of zone extended 11-33 crosswise of the
country. Structure headquarters consists of the following groups and departments:

1. Business Group

2. Corporate and Investment Banking Group

3. Business and Retail Banking Group

4. Group Audit and Control

5. Organizational Development and Training Group

2.6 NBP customers

1 Economic Wing, Ministry of Food

2 Agriculture and Livestock

8
3 Line of nuclear security and radiation protection PAEC

4 Fund for Cultural Heritage

5 Ministry of Interior

6 Ministry of Religious Affairs Government Pakistan

7 Complex Maritime Technology

8 National Language Authority (Cabinet Division) Islamabad

9 National Organization Productivity

10 Abroad Pakistanis Foundation

11 Pakistan Atomic Energy Commission

12 Ministry of Science and Technology, Govt. of Pakistan

13 Controller General of Accounts, PIFRA project

14 Pakistan Mineral Development Corporation

15 Pakistan Medical Research Council

16 Pakistan Nuclear safety

17 Pakistan Science Foundation

18 Pakistan Atomic Energy Commission

19 Water and Sanitation Agency & Development Authority Rawalpindi

20 The Academy of Education Planning and management

21 Pakistan Agricultural Research Council

22 Capital Development Authority

23 Criminal Investigation Agency - Rawalpindi

9
24 Pakistan Sales Automation

25 Ministry of Commerce

26 District Government Dera Ismail Khan

27 Experts Advisory Cell (EAC), the Ministry of Industry and Production

28 Department of Economics, Finance and Economic Affairs

29 Education for all Department of Education

30 National Energy and Conservation

31 Ministry of Environment, local authorities. and Rural Development

32 Islamabad Police

33 Pakistan Finnish Meteorological Institute

34 Ministry of Education

35 Ministry of Social Welfare of the population

36 Ministry of Petroleum and Natural

37 National Highway Authority

38 Federal Investigation Agency (FIA)

39 National Reconstruction Bureau

40 Abroad Employment Corporation

41 Management of scientific information NARC

10
 CHAPTER 3

ORGANIZATIONAL REVIEW
3.1 The organizational structure NBP

South Dakota

Retail & Regional Director of Director of

Business Corporate &
Commercial
Development Investment
Banking Banking Group
Group Chief
Regional
Management

Regional
Head of Branch
group operational
Manager Entreprene
urial North
& Business
Operations Branch South of
Area Operations
Manager

Regional
Risk Chief Risk
Management
Group Chief
Commercial
Office
The extent of
the area Branch Credit
Divisions

Regional
Review by Chief
the CEO Accounts
Find and
Regional Chief
Special
Investments
Group
Management Figure 1 Organizational structure NBP

11
In the beyond diagram, the leaders of the three regional companies, which is the
person straight to the men report directly to the President and the scattered line
exposure and business premise and Head of Group. Regional leaders of the operation
managers to administer the area risk management and area special audit of Asset
Management Regional Directors report to their group leaders with the place and is
speckled with a report, Regional Director Committee.

The recently build areas of the new leaders of regional business leaders will take over.
Experienced older presented regional heads of regional action to improve the powers
and responsibilities of existing regional business leaders. Heads of regional risk
management, powers and responsibilities of the regional inheritance. Praise
authoritative although the new regional institution, leaders and managers of regional
specificities affluence remnants the power of the Committee on Regional leaders
inspection management / CEO of the presented special regional funds. All other
managers / officers ought to be used with existing systems and process in the bank.
Powers of their place of employment and designation

In adding, the regional offices of the option of the subsequent, mutually to do

business, economic and administrative judgment given to the line advanced than the
region Entrepreneurship:

Table 1 Regional programs restructuring

The current Offered Location not None of the

branches

1
Karachi Karachi South Karachi West 35 50
2

All 85

12
 3

Hyderabad Hyderabad Larkana Sukkur 4 52 39 26

All 117

6
Bahawalpur
7
Multan Dera Ghazi Khan, Multan 65 26 56 51
8
Sahiwal
9

All 198

10

Faisalabad Jhang Faisalabad Sargodha 11 35 43 50

12

All 128

13
Gujranwala
14
Lahore Lahore-Sheikhupura Lahore-Kasur 46 31 37 44
15
Sialkot
16

All 158

Gujarat Jheium Rawalpindi 17 37 31

The federal capital of Gilgit (sub-region) 18 62 23 13

Islamabad 19

20

13
All 166

21

22 50
Peshawar Boras Peshawar Abbottabad Mardan
23 47 45 56

24

All 198

25
Muzaffarabad Mirpur Alaska Muzaffarabad 47 43
26

All 90

27 29
Quetta Quetta Gwadar
28 24

All 53

3.2 Regional Management Committee:

1. Regional Business Manager. Member

2. Director of Regional Operations. Member

3. Regional director of risk management. Member

4. Regional Director of accounts. Member

14
In the occasion of a hole conclusion, a greater part of the committee decide.
When it is alienated into the same numbers of audio resolution, which must be
submit to the leaders of the group's head office, which will decide the case on the
basis of their perceptive, if the President and / or the pertinent committees of the
seat, if compulsory, reports and environment be. The business, financial,
administrative supremacy is urbanized in the following table:

Table 2 Regional Management Committee

Reporting Powers
Designation
Dotted Line Solid Line Individual Collective
continuous line
Regional Retail &
As in the
companies Commercial President
current EPO
Banking Group
Chief
Chief

Regional
Director of
Director of Head of Answer the
Regional Better
Business group current ROC
Actions quality than
Development
the new

Regional As in the Regional

Regional risk Risk
Director of current Director
President and Management
Business financial
CEO Group Chief
Development officer

Regional Chief Regional

Regional Chief Similar to RAC
Accounts group

3.3 Manager

Rafiq Shah is Manager in NBP Main Branch Mansehra since April 2008. He has been
in observance money administration for 25 years.
The employment of the administrator is to carry business for the bank and to drag in

15
clients. With a detailed end goal to drag in the clients his individual connections help
him a substantial calculations.

Along with his stay in Main Branch Mansehra the advantage of this addition has been
prolonged 4 times and it has bowed into the most excellent bank in Mansehra.

The chief is tremendously enthusiastic to his employment. He even offers

supplementary time to his employment because of which his family is additionally
disregarded.

Chief has enormously kind and obliging nature. He is really helpful to his clients. At
whatever time they can visit his office and can converse about their issues recognized
with bank. Manager will endeavor his level best to take care of their issues.

Chief need to accomplish organization staff and as well the clients. He need to keep
an counterbalance.

On the rotten chance that chief is not satisfied by the functioning of any staff part then
he will appear for HR office. They will direct an enquiry and will moreover assert
from different sources (staff parts) that whether charge connected on him are right or
not.

Administrator has an appealing relationship with the staff. So as to achieve the work
some of the time he utilize power and off and on again trade off.

Administrator is an awfully talented individual. He try his level best to conclude the
targets given to him. In this admiration he has been granted idiosyncratic prizes for
his actions.

Area controls 60 limbs. Out of which main 10 extension are granted. In the middle of
the stay of this administrator NBP principle limb Mansehra has been given trade
prizes in for money two years for his most excellent implementation. Implementation
is measured on the basis of targets.

3.4 Director of Operations

Aqdas Ali is Operations administrator in Main limb Mansehra. Once the client enter
into the bank then the responsibility of Operations administrator begin. He is the

16
incharge in the entrance hall of bank. All the works complete in the passageway are
passed by him. His responsibility is to check whether the works are conceded out as
per systems or not.
All the workers are beneath his control. He compose the yearly secret Report (ACR)
of all legislative body. It is the employment of operations chief to reduce cheats.
Operations manager necessitate to appear for Regional Operational Chief (ROC). His
employment is tremendously hazardous. He need to keep his faculty vigilance
continuously.
On one side he need to maintain scrutinize all workings in bank and in the intervening
time he need to accomplish clients and illumine the dispute between the legislative
body furthermore the bogus impersonation of clients about the workings of bank.
There is a synchronized structure in the bank. The whole thing is interfaced. If
anybody commit any mistake then it will pressure the workings of whole bank. So
Operation Manager need to keep a taut control over all division to stay away from
disaster.

3.5 Awards of NBP Main Branch Mansehra

1. In 2007 this expansion was honored money prize of 1,25,000 by president of

Pakistan for its finest execution.
2. In 2008 this extension remain in major ten limb in area & was recompensed
with money prize.
3. In 2009 extension stand first in total area it will be honor in next reward
service.
4. In May 2009 Prime Minister of Azad Kashmir recompensed a Shield for
momentous obligation & conscientiousness towards the productive usage of
the provincial landless undertaking, UN-HABITAT.

3.5.1 Unmatched Banking Facilities:

1. The gain to attract. Savings

2. Agent State Bank of Pakistan receive from the public treasury management of
taxes and other revenues.

17
 3. Wages and salaries and pensions of federal / provincial government employees
and military personnel.

4. Electric bills for collections.

5. Provisions of the Hajj.

6. Purchases and sales of defense-related unique savings certificates of deposit.

7. Boxing customers.

3.6 Organizational Structure of NBP Main Branch Mansehra.

Figure 2 Organizational Structure of NBP Main Branch Mansehra

18
3.7 Current Employees Hierarchy of NBP Main Branch Mansehra.

Figure 3 Employees Hierarchy of NBP Main branch Mansehra

19
 CHAPTER 4

FINANCIAL ANALYSIS

The economic analysis, except vary analyst precise interests, forever use different
accounts, first and prime, balance sheet and income statement. The balance sheet
summarize the assets, liabilities and equity of the company at a time, and profit and
loss statement of revenue and expenses over a certain period of time. The framework
for the economic analysis provides the analyst with locking tool to parse financing.

4.1 National Bank of Pakistan three years Performance

NBP is one of the leading banks in Pakistan. The fact that this is the finest bank
Pakistan seen from the results shown in the table below.

Table 3 Three Years Performance

Year 2013 rupees 2014 (000) 2015 (000)

Total assets 862456773 1549659081 1711874168

Deposits 63254689 1431535397 1234405050

Progress 396543678 316110 268 839

Investment 325889490 139 947 156 986

Equity 395184 53045 37636

Profit before tax 349545 2313585 3417255

After tax 5306783 1607184 2076583

Share 21:22 19 14

Return on assets 2.48% 6.23% 2.34%

None of the branches 1309 1298 1274

The number of employees 16094 16062 15041

(Source annual reports, 2013, 2014, and 2015)

20
In the beyond table, it is very clear that the performance of the overall SPT to go
higher and higher on top in 2007, when we draw a graph that shows the graph of the
increase. Profit is rising every year. NBP to decrease branches and employees due to
automation and large networks of other banks. But the bank cannot compete and PI is
now the finest bank of the year.

Table 4 Directors' Report on Consolidated Financial Statement

Consolidated Financial Statements 2015-2014

Rupees in million
2015 2014

Pre-tax profit 34,173 34173 23136

Taxation

- Current 14,669 14669 9570

- Prior year (s) 2,299 2299 4

- Deferred (2,872) 2872 2501

14,096 14096 7065

After Tax Profit 20,077 20077 16071

Non-controlling interest (34) 34 14

Un-appropriated profit brought forward 59,752 59752 49734

Other comprehensive income - net of tax (1,567) 1567 436

Transfer from surplus on revaluation of fixed assets 120 120 126

Profit available for appropriations 78,348 78348 65509

Transfer to Statutory Reserve (10% of after tax profit) (1,922) 1992 1503

Cash dividend paid (11,701) 11701 4255

Transfer to general loan loss reserve (12,000) 12000 -

Un-appropriated profit carried forward 52,725 52725 59725

Basic & diluted earnings per share Rs. 9.44 9.44 7.56

For and on behalf of the Board of Directors

Syed Ahmed Iqbal Ashraf
President
Date: February 19, 2016

21
Table 5 Consolidated Profit and Loss Account

22
Table 6 Consolidated Statement of Comprehensive Income

23
24
25
4.2 Ratio Analysis

The economic analysis is to identify the financial strengths and weaknesses of the
company's suitable modification for the foundation of the association between the
process to participate in according with the organization's goals, the balance sheet and
the profit and loss of a rational decision to control the use of analytical tools. In order
to appraise the financial position and results of financial market analyst community
must be address different aspect of the financial health of our organization.
"Maintenance"

The instrument is frequently used for these checks is a financial ratio analysis, which
include two economic terms, the number of other parties, we compute the ratio
between how the equation, which can be more useful than the raw number of self. The
company itself and external investors (creditors and investors) all accounts of
behavior analysis. This type of analysis is base on the exact interests of that party.
Character analysis base on the purpose of the analyst.

4.3 Parties Interested In Ratio Analysis

4.3.1 Creditors

Trade payables are engrossed in its capability to meets a very short time of their
claim. Limiting their analysis assess the liquidity position of the company.

4.3.2 Providers of long-term debt

Providers of long-term debt on the other hand, is worried about the long-term
solvency and continued existence. Corporate productivity investigation time that its
ability to produce to pay interest and principal and interest payments of principal and
liquidity of the association between the different funding source. (Capital structure
ratio).

Long-term liabilities examine historical documents, but they are more paying
attention on earnings expectations to worry about the future solvency and
profitability. Analysis

26
4.3.3 Investors

Investors who have invest their money in joint-stock companies are more anxious
about the constant growth of the company's performance. As such, they focused on an
analysis of the current and future feasibility of the company. They are also involved in
the financial structure of the company so far as it affects the profits of the business
and risk.

4.3.4 Management.

The organization is interest in all aspect of financial analysis. It is a general

compulsion to make sure that its resource are used as proficiently as possible and that
the economic condition is good quality. Even though the main internal control and to
get better the financial position and performance of the company, and that the lender
is look for from the viewpoint of internal control must be in use or taken to plan and
manage efficiently. The management of financial analysis Financial Analysis

4.4 Ratio Analysis

The ratio is a link of two numbers a balance sheet and income statement.

4.4.1 Cash Ratio

"This does is obtain by dividing the short-term debt / debt money." This fact show
that money is sufficient to tie or not to pay the short term. It is calculated as:

Cash Ratio = Cash/current liabilities

Table 7 Cash Ratio

Year 2014 2015

Cash 46789827 54386990

obligations 670374 2410482

cash flow report 69.79% 22.56%

(Source Annual Reports, 2014.2015)

27
It means how much money is on hand to pay for it. "Current liabilities. This ratio of
gross domestic product in decline. Since cash advance is elevated less coverage.
Current liabilities

4.4.2 Gross Profit Margin Ratio:

"This discovery shows that the profitability of sales / turnover."

This is defined.

Gross profit / interest Earned

Table 8 Gross Profit Margin Ratio

Year 2014 2015

Gross profit 1607184 20076583

Interest income 37486812 44442448

Gross profit% 0.042% 0.45%

(Source Annual Reports, 2014, 2015)

G. operating margin gains in the sales organization of interest (in the case of a bank)
bound.

The calculation is very clear that the gross margin of the dose downward trend that
shows how to use the deposit interest rate. This shows the benefit of society in
relation to revenue. It measures the efficiency of the company as well. Since it is clear
that the ratio drops, it is an indication of unsatisfactory results.

4.4.3 Net Profit Margin:

This ratio measures the profitability of sales / interest in the company, taking into
account all expenses and taxes. This ratio can be calculated as follows:

Net income ration = Net income / interest

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 Table 9 Net Profit Margin

Year 2014 2015

Profit for the period 13592401 16793730

Interest income 37486812 44442448

Operating profit,% 0.36% 0.37%

(Source Annual Report,2014,2015)

Explanation: computing and graphics, it is clear that the performance of GNP is not
good. And the direction is downward. It reflects the company's earnings per rupee
profit. As the downward trend still shows a surplus of low rupee in GDP. This is due
to the excessive pre-NBP has given population and economic condtion.

4.4.4 Return on equity

Distribution of profit after tax equity. RE compares net profit after tax equity.

This ratio is calculated as follows:

ROE = Net income / Total equity

Table 10 Return on equity

Year 2014 2015

Profit for the period 13592401 16793730

Equity 2478783 3282853

Return on equity 5.483% 5.11%

(Source Annual Reports 2014,2015)

29
Explanation: The calculation is clear that renewable energy report is a downward
trend in the NBP. It is because of low income, they won. He says that the return on
investment of the lower shareholders. This is due to large investments and PI
inefficient management of resources and order in the country.

4.4.5 Return on Assets

This report demonstrates the effectiveness of the organization's effective use of its
resources. This report is related assets.

It is calculated as follows:

Profit after tax / total assets

Table 11 Return on Assets

Year 2014 2015

PAT 16071184 20076583

Total assets 2043040 1716040

Return on assets 7.86% 11.69%

(Source Annual Reports 2014,2015)

The calculation shows that this relationship NBP down. It shows that EA can be used
for efficiency. So the property, they earn very low profit. This shows that how the
inefficiently invest in capital because they make a small profit.

4.4.6 Debt to equity

This ratio tells you how many affected creditors and shareholders. It shows how the
company is using borrowed money. It is calculated simply by dividing the total debt
of the fire on their own. This is defined as:

Total debt / equity

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 Table 12 Debt to equity ratio

Year 2014 2015

Total equity and liabilities 234631 843669

Equity 2478783 3282853

Gearing 2.45% 0.256%

(Source Annual Reports 2014,2015)

The table and the chart show that the ratio drops to give unsatisfactory results of PI. In
2014 was high, but in 2015 fell to 0.256 from 0.094, which is a bad sign. Here's
creditors are interested in a small handle. The higher the ratio of high fire from its
own resources.

4.4.7 Debt to Asset

This shows the extent to which the assets are financed with credit cards. It is
calculated.

The total debt / total assets

Table 13 Debt to Asset

Year 2014 2015

Total equity and liabilities 234631 843669

Total assets 2043040 1716040

The ratio of debt to assets 0.11% 0.49%

(Source Annual Reports 2014, 2015)

31
This does is directly proportional to the relatively high risk implies high risk and low-
risk means low ratio. Calculation shows that the relationship between decreasig risk.
This ratio is the same as the debt ratio. This ratio is high due to the large number of
bank deposits and the responsibility of the customer to the bank

4.4.8 Assets Turnover Ratio

The relationship between the turnover / total net income of the asset is known as the
total income in relation to solvency. It is calculated.

Total posts / active sales

Table 14 Assets Turnover Ratio

Year 2014 2015

Income 13592401 16793730

Total assets 2043040 1716040

Revenue adequacy
ratio 6.65% 9.78%

(Source Annual Reports 2014, 2015)

Explanation: This report shows the relative efficiency with which it uses its assets in
income. We can see that the ratio is high, which is a good sign, and shows that PI to
use their resources effectively. Use

4.4.9 Dividend Yield

Expected annual dividend divided by share price.

It is calculated.

Dividend yield = Total yield / market

32
 Table 15 Dividend Yield

Year 2014 2015

Dividend 1.63 02:45

(Source Annual Reports 2014, 2015)

2015 was better than the dividend yield seems to be; this is mainly due to decrease in
the number of outstanding shares. In 2014, growth stocks fell dividend yield, but due
to the increase in the total dividend in 2015, he came to 1.63

The above table clearly shows that the increase in yield, but in 2014 is low. This is
due to the fact that the high price market and low interest rates.

4.5 Financial Perspective

Economic analysis is an estimation of the history, the financial performance of the

company and its future prediction. It is the use of analytical and technical and
additional appropriate information in order to get useful information tools. The
financial statements with associated tables and a report on the president's performance
and the position gives very modest information. Stakeholders need extra
comprehensive information. Therefore develop economic analysis. Its major goal is to
acquire a understandable picture of the financial situation of the association between
the study and evaluation of the parts of the sentence execute. What is vital for the
economic analysis? I have three instruments use to review the economic wealth of the
PI;

1. SWOT Analysis

2. Ratio Analysis

3. Strategic analysis.

33
4.6 SWOT Analysis

SWOT analysis is an vital tool in the generally situation of the organization, business
analysis. Each song is immobile related and helpful for the formulation of corporate
strategy.

Kraft The event and threats in the summary can be determined by the following SPT:

4.6.1 Strengths

1. PI focus on retail banking products consumers with inventive savings

products, programs, products and services that best fit based on daily life
consumer.

2. The Bank offer its customers. 24 hours ATM institution.

3. Development and upgrading of services for domestic and international

customers similar.

4. Awards and prizes on different articles and striking and higher revenues.

5. Rising foreign company to set up branches in other countries.

6. The finest option for a team that actually improved their dedication to the
dedication and tough work to attain bonus targets.

7. Human resource development and use of technology in the sagacity of

modern or new development.

8. 24 hours a cash and pay is all high quality.

9. NBP_ financial products to customers who wants to manage credit

facilities of NBP branches.

4.6.2 Weaknesses

1. The enlargement sluggish improvement in the small term, the PI focus on

high-value customers in the market.

34
 2. In addition, new rules for the year, because the magnetism of the moon to
the customers.

3. Customer accounts in minute amounts, it is not given the similar benefits

and trade, which will give to those who have a high bills.

4. Political influence or force on the government, or special interest groups.

4.6.3 Options

1. As an effectual management and experienced SPT can also improve the

well and effectively developed their activities abroad.

2. Currency Area can be open in the cities where the branches will swap the
developer.

3. More and public order business and trade PI allow for immediate cash
requirements and the financial affairs of the people effectively.

4. Customer response on different products and invoices, bank improved

performance and encourage an atmosphere of other future policies.

5. PI is also an chance for new technological development, such as tele-

banking and Internet banking services to expands the serve up customers
more professionally and the technology is according with international or
modern banking.

4.6.4 Threats

1. Competitors are more and more private banking sector in Pakistan as a

outcome of the privatization of state-owned banks.

2. A growing numbers of competitors in the form of foreign banks Pakistan,

If the service just before thanks to modern technology and they also offers
attractive and extremely specialize services to its clients.

3. The discrepancy of the government due to the political instability, threats

to business and the economy of the country.

35
 4. The quick growth of the technology in the world.

5. Sever government regulations on credit facilities to customers, and is

liable for the prudential regulation.

6. The change is needs of the customers.

7. Loss of confidence in foreign countries and take visitors after frozen of

accounts.

After the SWOT analysis, the bank's senior management a variety of researches and
growth should be to identifying customers needs and developed new programs and
strategies to conquer them. The supposed weakness and opportunities for PI needs a
few actions will carry on to be in danger and they have plans for growth in the
banking sectors and introduce a number of new systems. PI should be given to the
needs of their customers. Particular attention will be.

4.7 Review of Financial Statements

Two types of accounts are appreciated financial condition statement of the assets and
liabilities, income PLS community. These statement should be two years beneath.

36
 CHAPTER 5

RESULTS AND CONCLUSIONS AND

IMPLEMENTATIONS

After the strategic analysis of business and financial information for the central bank
Pakistan. Lets me synopsis of the answer and recommendations in the report.

The whole outcome of GDP profitability and growth has slow in recent years.
Responsible for the deprived performance in GDP or arrogant because of the loan, the
surplus and the unsteady political atmosphere in the country. Survive, grow ferocious
market competitions, the banks needs more and more concentration to the "Business
Development". Business development means that policies and the programs of the
sale of objective goods and insubstantial services profit, enlargement and endurance
of the operation.

2012 was a bed year for record profits; Franchise Bank and a strong fundamental
force exceptional results in a competitive environment. Profit before tax increased by
Rs 1466542, an increase of 1.63% compared to last year. Earnings per share increased
4.34% to Rs 7029 in 2013 to Rs 25.56 in 2012 pre-tax return on equity of 42% .Pretax
return on assets improved to 2.48% in the 3 to 6.235% last year, and cost the result 0,
14 remained in the upper layer. Increased 5600000 strong growth. Interest income
increased to Rs 10 billion (30%) and dividend income increased by 13,783,000,000th
advances increased by Rs 38Billion an impressive contribution to the business units.
Deposits increased by Rs 26000,000 or 5% compared to last year. Bank loan loss
provision for doubtful debts was 82.48%.

5.1 Implementation

Every organization has its own strengths and weaknesses, and there is a space for
improvement. Not anything is unfeasible in this world that somebody truly said; "The
impossible is often accused of" .NBP have to achieved if they are loyal and sure about
their goals, their goals.

37
5.2 Business Plan Development

Development of the objectives of the business process, you need to develop the
following:

5.2.1 Campaigns to open multiple accounts

The size of the business and the profits of the banking system is mostly depend on the
numbers of bank account holders. You can add multiple accounts would be a obvious
plan on the market. This strategy must enters a new market or increases the share of a
given market.

The staff limb managers and employees in the company's list of the different groups
of the prospective account holder and their neighbors arrange friends and powerful
peoples, and endeavor to open their income and composition of deposits. This is the
arena in association with a variety sectors of the bank.

The operation to open more than one account, and shall be conduct each year by set
monthly targets to open the new accounts and should be review each month
demonstration at the main office districts.

5.2.2 Campaigns to mobilize deposits

Deposits are the main source of financing with no the bank can check out. They are
the banks, it is especially imperative for banks whose main function is to provide
them with secure and productive.

It attract money is important, but similar to so many other processes in technical

trading is not suitable. The bank can obtain money by advertising through direct
contact with welcoming.

Their officers, directors and the employees. Then they can locate and keep customers
at the end to give the character of bank depositors fell is what they want. One of the
most excellent way to respond to deposit and extract well-mannered and well-
organized services to the needs and requirements of the clients in keeping:

"A satisfied customer is good publicity."

38
5.2.3 Campaigns to increase the share of the company

Promotion, most of the business of import, export, guarantees, remittances, bills to

spot the means of production for safe and liquid, etc. should be perform. The
managing of the bank should set up a business growth, captivating into account banks'
total industry market share of the bank and the future market share in the banking
sector stage. In light mar4kiet is the progress of the industry has an yearly base by
setting monthly target for import, export, issuance of letters of credit, bills, etc., to
make sure that the objectives are review monthly seat alike circuit and commands and
guiding principle for ground examination and the area where capability of the target.

5.2.4 Staff Training

We all be familiar with that the profitability, growth and survival of the bank depend
on the maturity of society. Therefore, banks should take steps to education,
rehabilitation, executive and managers to give a modern business and public relations.

Business education is the process of dispersal of scientific knowledge and attitude

shape, work habits, and it consist of tests that shows and the students can learned and
controlled his / her result and make m = productive mend.

5.3 Market research and analysis plan

1. Pre-start-up or increase of a complete market survey / analysis, using any and /

or in the following ways:

1. The greatest way is to gather the questionnaire. First-hand information on the

prospective market surveys should be objective and should not lead to the most
wanted result.

2. Historical data, if any, can be incredibly helpful in spotting opportunity and

trends.

3. In the deficiency of knowledge of the service or the lack of past data, it is not
possible to carry out a research projects, the information of the place, which is
the similar or close up properties may be use.

39
5.4 Development of product

The technique for achieving the strategic objective is to developed new product or
services to meet up the need of the audience. The growth of new products in the bank
are:

1. Explanation of the main features of a new product or services.

2. In order to attain a specified level in the request. ROI

3. The amount of uniqueness will be develop.

4. Effects on presented systems or services and the accessibility of alternative,

enhanced or get better offered products.

5. Printing and packaging techniques that will add a new sales of offered services,
service or system can be register.

6. The benefit of these new provision for the new services.

5.5 Plans for monitoring and evaluation:

The system and measures for the bank to be energetic, elastic and depend on the
monitoring and constant evaluation. Necessities for monitoring and evaluation are:

1. It should be a good, open and neutral response system problems and

recommend improvement.

2. The opinion system should be included customers and all employees from
peak to base of the bank.

3. The opinion system has to do. Both the regular information necessities and
may be different.

4. The problem and the mistake is analyze and remove from the proposal in
every related levels will be review and probably implement.

40
5.6 The effectiveness of the evaluation plan

Usual evaluation is made. Function essential this evaluation should not be inadequate
merely to manage wages; it should be, and is approved out as follows:

1. Objectives for all employees should be plainly clear, quantifiable and

measureable way.

2. An organized approach must be adopt, where employees are also concerned in

the evaluation process.

3. The system should be quantifiable targets connected to digital.

4. Evaluation of outcome must be complete in small interval, such as quarterly.

Introduction reports and the answer can be influential gear for performance.

5. Performance evaluation ought to seek out the skill and productivity by

civilizing the recognition of preparation needs.

6. The system is predictable to accept their hold likes and dislikes could not
follow throughout.

5.7 Recruitment Process and Job Description Plan

HR peoples believes that the malfunction of his subordinate is actually a futile leader
if he / she has completed the accurate alternative, or he / she do not contain the
capacity to manage the determination. The problem might be in the contract, or the
explanation of the gesture channel.

If workers are extra productive in each bank must be clever to get better. In its
conscription and employment.

This can be achieve by the following:

1. Needs appraisal site.

2. Growth of skill and experience, depend on requirement. No goals contain to

achieve grade.

41
 3. Implement standardized assortment criterion.

4. Will received recompense in accordance with the work of presented skill and
experience of the packages in the existing case, wages at this level.

5. Prepare exhaustive job depiction.

6. Programmers are full.

5.8 Internship Program levels

Even though the over process was selected the right people to help out a lot, but there
is an option that the information may shock candidates to get through and be chosen.
So the majority of the resources of the organization in terms of time and money it take
them a good quality education.

One of the finest and mainly cost-effective methods to want to rent the company's
Bachelor of Business Administration and the precise people, schools and interned.
The internship program is divided into at least six months. During training have to
equal the prisoner. At the end, of course, the carrying out of the prisoner, assess and
skilled, devoted and lively, which will be held permanently. Hired

5.9 Plan customer loyalty

Keep customers is harder than having the client. Breaking the stability and excellence
of service, can guide to a fast associate competitive environment, the existence of.

The bank has been adapted to meet customer loyalty:

1. Effective and efficient handling of the complaints.

2. System for customer response through a sovereign source.

3. Information on effectual management.

4. Extrapolative forward.

42
References

1. Block, Stanley B. Hart, Goettrey foundation of Financial Management Sydney

Ed. Von Hoffmann press. (7th Edition)

2. Horn Branch, DunDee. (2013). Introduction to Financial Accounting. New

Jersey: canopy Hall Press.

3. National Bank of Pakistan (2014-2015) Annual Report

4. Auditors' Report 2014-2015 (National Bank of Pakistan Main Line Mansehra)

5. http: //www.nbp.com.pk (Access 2015)

43