Internship Report on National Bank of Pakistan

Submitted by: Registration: Supervised by:

Azeem Ijaz Qureshi. FA07-BBA-048. Mr. Awais Rashid.

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

July 2011

Internship report on National Bank of Pakistan

Submitted by: Azeem Ijaz Qureshi. Registration #: FA07-BBA-048. Supervised by: Mr. Awais Rahid.

This internship report is submitted in partial fulfillment of the requirements for the degree of Bachelors of Business Administration awarded by the COMSATS Institute of Information Technology, Abbottabad.

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

July 2011

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Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

Approval Sheet

Approval Committee

External Examiner Mr. _________________________________________Signature_______________ Supervisor

Mr. _________________________________________Signature_______________

Head of Department Mr. ________________________________________Signature _________ ______

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Dedication
I would like to thank my lovely parents for giving me this opportunity to attend this degree and supporting me in all my student life. They acted as a backbone and a major reason behind my accomplishment of this degree. I dedicated this project to my ever-loving parents and all my friends.

Abstract
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For the economic growth and sustainability of country financial institutions play a very important and vital role. The bank circulates and deals in money. Such institution are also required to fulfill other financial needs such as provision of place to deposit money, serving for the utilities and also advancing money in order to facilitate the need s of house holders and the businesses. Banking has always been the main field of interest for most of the business. In this report the financial position of NBP and its Khola Kehal branch Abbottabad has been thoroughly studied and analyzed. The methodology that was used was available resources by the organization, like website, annual reports, publicly available data, etc. Also, interviews with some employees and observation methods were used. The data collection was an exhaustive process and all secondary resources were used like, Internet, Books, Reports, Articles etc were used. In the first chapter introduction to the report, background of study, scope of the study, merits, limitation and scheme of the study are given. The report covers the history of NBP bank, introduction to the organization, its background, role and functions of organization, its core values, and miscellaneous topics related to Finance department of NBP Bank. Finally it is concluded that the bank is functioning in a proper & systematic manner, but need more competitive strategies, long term debts, & outside creditors, creditors should provide the funds to meet the SBP policies to have the maximum branches.

Table of Contents
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Internship Report on National Bank of Pakistan..................................i Table of Contents..............................................................................vi Acknowledgement.............................................................................ix Abbreviations.....................................................................................x Executive Summary..........................................................................xi Chapter 1...........................................................................................1 Introduction to the Report..................................................................1 1.1 Background of the Study:............................................................1 1.2 Purpose of the study:...................................................................1 1.3 Scope of the study:......................................................................1 1.4 Limitations of the Report:............................................................1 1.5 Merits of the Report:....................................................................2 1.6 Methodology of the Report:.........................................................2 1.6.1 Primary Data:.........................................................................2 1.6.2 Secondary Sources:...............................................................2 1.7 Scheme of the Report..................................................................2 Chapter 2...........................................................................................4 Introduction to National Bank of Pakistan..........................................4 2.1 Evolution of Banking:...................................................................4 2.2 Historical background of National Bank of Pakistan.....................4 2.2.1 History...................................................................................4 2.2.2 Present status........................................................................5 2.2.3 Credit rating...........................................................................5 2.2.4 Awards and achievements.....................................................5 2.2.5 Auditors.................................................................................5 2.2.6 Registrats &Share Registration Office..................................6 2.3 Branch Network...........................................................................6 2.3 Organizational Structure..............................................................7 ...........................................................................................................7 2.4 Vision and Mission statements.....................................................8 2.4.1 Vision statement....................................................................8 2.4.2 Mission statement..................................................................8 2.5 Objective of NBP..........................................................................8 2.6 Core values..................................................................................8 2.7 Corporate profile..........................................................................8 2.8 Company information..................................................................8
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2.8.1 Board of Directors..................................................................8 2.8.2 Registered Head office...........................................................9 2.8.3 Audit Committee....................................................................9 2.8.4 Legal Advisors........................................................................9 2.8.4 Branches all over the country................................................9 2.9 Corporate banking.......................................................................9 2.10 Retail banking..........................................................................10 2.11 Special assets management....................................................10 2.13 Operations...............................................................................10 2.14 Risk management....................................................................11 2.15 Credit to AGRO.........................................................................11 2.16 Treasury Management.............................................................11 2.17 Human resource function.........................................................12 2.18 Information technology............................................................12 2.19 Organization Brach Structure Chart.........................................12 Chapter 3.........................................................................................13 Products and services at NBP Khola Kehal Branch...........................13 3.1 Departments in NBP Khola Kehal Branch Abbottabad...............13 3.1.1.1General banking................................................................13 3.1.1.2 Inquiring............................................................................13 3.1.1.3 Deposit.............................................................................13 3.1.1.4 Cash department..............................................................13 3.1.1.5 Utility bills.........................................................................14 3.1.1.6 Remittance department ...................................................14 3.2 Product Lines: ...........................................................................15 3.2.1 NBP Premium Aamdani: ......................................................15 3.2.2 NBP Premium Saver.............................................................16 3.2.4 NBP Saibaan: ......................................................................16 3.2.5 Home Purchase (House or Apartment)................................17 3.2.6 Home Construction .............................................................17 3.2.7 Home Renovation ...............................................................17 3.2.8 Purchase of Land and for Construction ..............................17 3.2.9 Re-Financing (Balance Transfer Facility (BTF).....................17 3.2.10 NBP Advance Salary: ............................................................18 Chapter 4 ........................................................................................19 Analysis of NBP................................................................................19

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4.1 Horizontal Analysis.....................................................................19 4.2.1 Interpretation of Horizontal Analysis of Income Statement 19 4.2.2 Horizontal Analysis of Balance Sheet ..................................21 Interpretation:...............................................................................21 4.3 Vertical Analysis: .......................................................................21 4.3.1 Vertical Analysis of Balance Sheet:......................................22 Interpretation:...............................................................................23 4.3.2 Vertical Analysis of Income Statement................................23 Interpretation:...............................................................................24 4.4 Ratio Analysis.............................................................................24 4.4.1 Liquidity Ratios: ..................................................................24 4.4.2 Leverage Ratios:..................................................................25 4.4.3 Profitability Ratios: ..............................................................25 4.5 Ratio Analysis Interpretation:.....................................................25 4.6 Profitability Ratios:.....................................................................26 4.7 SWOT analysis: .........................................................................27 4.7.1 Strengths: ...........................................................................27 4.7.2 Weaknesses: .......................................................................28 4.7.3 Opportunities:......................................................................29 4.7.4 Threats: ...............................................................................30 Chapter 5.........................................................................................31 Conclusion and Recommendations..................................................31 5.1 Recommendations: ...................................................................31 5.2 Conclusion..................................................................................32 References:......................................................................................34

Acknowledgement
God Almighty is worthy of all acknowledgments, whose grace has no limits and who gave me the strength and will to complete this report. I have no words to express my heartiest sense of gratitude to my supervisor, Mr. Awais Rashid for his supervision, contribution, intellectual guidance, constructive suggestion, valuable time, patience and wise comments to make this report possible. I highly appreciate the help and cooperation of the manager Saeed NBP Khola Kehal branch Abbottabad for his support and collaboration. I also acknowledge the help of all government departments
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and public in collecting information / documents / data for this report. The last but not least, I would feel incomplete without thanking to my parents who always pray for my brilliant success and bright future.

Abbreviations

SBP NBP NAFA PKR UK

State Bank of Pakistan. National Bank of Pakistan. National Fullerton Asset management limited. Pakistani rupee. United Kingdom.
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KSA DD D

Kingdom of Saudi Arabia. Demand draft. Deposits.

Executive Summary
National bank of Pakistan was established under the national bank of Pakistan ordinance, 1948. The bank provides all sorts of banking services to the government and private sectors. It acts as an agent of the central bank where ever the state bank of Pakistan is does not have its own branches. The bank is scheduled as the commercial bank and it is principally engaged in the business of banking as defined in the banking companys ordinance 1962.The report is based on my six weeks internship program in National Bank of Pakistan. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal
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observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards. National Bank of Pakistan has a network of 1,250(1287) if we include foreign branches) domestic branch and 16248 employees. National Bank of Pakistan is also the first bank which started Foreign Exchange Co in order to facilitate the general masses, regularize the inflow of the foreign money and control, the undesirable blackmailing of the private exchange companies in the country. Departments are Deposits Department, Remittances Department, Clearing Department, Advances Department, and Foreign Exchange Department Financial Statement Analysis is the scales due to which we can measure the financial position of a firm. The creditors are interested in the liquidity of the firm, to meet their short term obligations and also having the ability for payment of these obligations.. The investors in a companys common stock are interested with present and expected future earning of the firm and the stability of these earnings. The analyses are used to measure firms performance over time Common size analysis expresses comparison in percentage. It has the following types Vertical analysis compares each amount with a base amount selected from the same year. Horizontal analysis compares each amount for a selected base year or we take each item of base year as 100% and compare with other items. There are some ratios that are used for the analysis of the banks these are Earning assets to total assets, Return on earning assets, Interest margin to average earning assets, Loan loss coverage ratio, Equity capital to total asset, Deposit times capital, Loan to deposits. SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organizations internal strengths and weakness as well as its environment opportunities and threats. SWOT analysis is a situational which includes strengths, weaknesses, opportunities and threats that affect organizational performance. The finding and recommendations regarding national bank of Pakistan Khola Kehal branch Abbottabad is concluded after sound observation and realistic approach.

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Chapter 1 Introduction to the Report

1.1 Background of the Study: National Bank of Pakistan is the largest bank nation wide with its large number of deposits and branch network. Its branches in foreign countries are also high in number than other banks that are working in Pakistan that developed my interest to do internship in bank. 1.2 Purpose of the study: Purpose of doing internship is requirement of degree program for BBA requirement where students are supposed to do our the practical analysis of what they studied in their specialization subjects and all these analysis are then supposed to be submit in the form of report. 1.3 Scope of the study: Time frame in which bank branch is studied by me is of six weeks in that time period I study management of the bank and learn how they practice different financial aspects. From accounts section of bank branch no data is mentioned here in report as this is against the policy of NBP but an overall financial statement analysis is there which is going to be helpful for any one who is interested in studying analysis for NBP. 1.4 Limitations of the Report: No one is entitled to retrieve its result for any purpose except authorized bank personnel for official purpose. Internship students are not allowed to retrieve and use any confidential material for any purpose, as it is against the bank policy. This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the nature of the study, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of a bank.

1.5 Merits of the Report: This report consists of financial analysis of NBP from 2007 to 2010. Inside financial analysis the horizontal and vertical analysis are done along with analysis of ratios that makes the report helpful for any student to study. Other than that this report consists of the SWOT analysis which is done on the basis of the ratios calculations. Personal recommendations and conclusions are also in the report. . 1.6 Methodology of the Report: 1.6.1 Primary Data: This report involves the following type of data: Interviews with employees and Customers Personal observation during work

1.6.2 Secondary Sources: In secondary source I have taken information for report writing from annual reports of the National Bank. Some information from the following Annual reports Manuals Journal Magazine Internet

1.7 Scheme of the Report This internship report is divided into five chapters as: Chapter one includes background, purpose, scope, limitations, methodology,

and scheme of the report. Chapter two includes background and history of banking in Pakistan,

background of NBP, roles, functions and branches.

Chapter three includes Financial position and products & services provided by

National Bank of Pakistan and its Branch located at Abbottabad Chapter four includes financial and non financial analysis. Chapter five includes recommendations of the study based on the analysis in

the previous chapters.

Chapter 2 Introduction to National Bank of Pakistan

2.1 Evolution of Banking: Banking practices have been recorded back to 2004 B.C, in one form or other. Sometimes these activities were carried out in Temples, on Benches and sometimes in shops of Goldsmiths. But these activities were the beginning of Banking or it were the early stages of modern day Banking. Interestingly no exact origin of the word Bank exists, and different authors have attributed it to different origins. Some researchers say that it is derived from German word Back which means Joint Stock Fund and later on in Italy this word became Bank. However no exact origin exists and this shows how old these practice are. G.Crowther in his famous book, An outline of money has traced that commercial banking has three ancestors i.e., Merchants, the Goldsmiths and Moneylenders. These merchants, goldsmiths and money lenders performed the functions of accepting of deposits/gold, issuance of Notes, Payment of interest and charging of interesting etc. this was the beginning of modern banking. 2.2 Historical background of National Bank of Pakistan. 2.2.1 History National Bank of Pakistan was established on November 9, 1949 as a result of deadlock with India and the devaluation of the Indian rupee where Pakistan much to India and British consternation did not follow suit. The objective of establishing the bank was to provide much needed financing to the agricultural sector, particularly to facilitate the badly hit jute trade. The bank then Into on to become the sole agent of the State Bank of Pakistan for handling provincial and federal government receipts and payments.

2.2.2 Present status The bank maintained its position as the largest bank deposit holder in Pakistan. The integration of corporate and investment banking efforts in enabling the bank to offer wider products range besides making it a major player in debt and equity market. The Bank has one joint venture in U.K. and one wholly owned subsidiary in Kazakhstan. The U.K. Operations of the Bank Ire merged with that of United Bank Limited to form a Joint Venture Bank namely Pakistan Investment Bank (PIB) incorporated in U.K. NBP has 45% of share holding while the balance 55% is with UBL. The bank is witnessing major developments in the field of technology. For facilitating the customers round the clock payment of utility bills, around 100 kiosks are being established in the important cities. In addition, branches covering 80% business are converted into fully automated on real time basis. 2.2.3 Credit rating The JCR_VIS credit rating agency, as affiliate of Japan's credit agency has awarded credit rating AAA rating on September 20,2002 which is more than stable in whole banking industry of Pakistan and is still maintained. 2.2.4 Awards and achievements Bank of the year in year 2010. President of Pakistan trophy in year 2010. Banker by ranking in top 500 banks of the world in year 2008. Best return of capital in year 2007. Best foreign exchange bank in year 2005. Best bank of the year in 2004.

2.2.5 Auditors Anjum Asim Shahid Rahman. Chartered Accountancts

M. Yousuf Adil Saleem & Co. Chartered Accountants 2.2.6 Registrats &Share Registration Office Central Depository Company of Pakistan, CDC House, 99-B, Block-B, S.M.C.H.S, Main Shara-e-Faisal Karachi, Pakistan. 2.3 Branch Network With the geographical development of its branches, the Bank has been able to extend its services to a much larger number of Pakistanis all over the country. Today it has more 10 million accounts. Bank maintains its presence in all the major financial centers of the world through its 15 overseas branches and 5 representative offices. Of these, three representative offices have recently been set up at Tashkent (Uzbekistan), Baku (Azerbaijan) and Almaty (Kazakhstan) to take advantage of the emerging opportunities in CIS countries. Banks role globally is Ill assisted by its network of correspondent banks located strategically in Asia, America, Europe and Africa.

2.3 Organizational Structure

Source: Self made.

2.4 Vision and Mission statements 2.4.1 Vision statement To be recognized as a leader and a brand synonymous with truest, highest standards of service quality, international best practices and social responsibility. 2.4.2 Mission statement NBP will aspire to the values that make NBP truly the Nations Bank by institutionalizing a merit and performance culture, creating a distinctive brand identity by providing the highest standards of services, adopting the best international management practice. Maximizing stakeholders value along with discharging responsibility as a good corporate citizen of Pakistan and countries where they operate. 2.5 Objective of NBP To accomplish their mission their current objective is to maximization of stakeholders value by offering modern information technology in their product and services. Expanding globally and promoting domestically Islamic banking sector as per stated by State Bank of Pakistan. 2.6 Core values The NPB organization is based on: 1. Maximize value for stakeholders 2. Maintain their credit ratings. 3. Acquire more and more deposits and provide the latest transaction facilities. 2.7 Corporate profile NBP has got the 1200+ branches nation wide if foreign branches include in it then they are more than 1287. Where the State Bank of Pakistan does not exist there they act as its agent and NBP is also holder for NIT securities. 2.8 Company information 2.8.1 Board of Directors S. Ali Raza Dr. Waqar Masood Khan. Chief Executive / President. Director.
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Kamran Y. Mirza Rizawan A. Kehar A.Razzak Tabba Sheikh Humayun Sayeed Qazi Faez Isa 2.8.2 Registered Head office

Director. Director. Director. Director. Director.

I.I.Chandigard Road, Karachi, Pakistan. 2.8.3 Audit Committee Tariq Kirmani Chairman Nazrat Bashir Member Haniya Shahid Naseem Member 2.8.4 Legal Advisors Mandviwala & Zafar Advocated & Legal Consultants 2.8.4 Branches all over the country

2.9 Corporate banking Mr. Hussain played key role in developing and implementing strategies for NBP in both private and public sector including transactions that involve multilateral financial institutions. NBP strategic work in corporate banking is majorly upon planning and profit/ loss management, people and business management in a matrix organization, corporate governance and compliance credit corporate banking expertise, credit and risk assessment/ approval of corporate, financial institutions and country risk exposure.
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2.10 Retail banking The NBP move consumer loan segment and witnessed growth in advance salary and cash in gold products. These products are of low risk and will provide good opportunity in the years ahead. During 2010 a new business current account product was launched with a view to cater to specific needs of business community across various stratas. Despite adverse macroeconomics factors and competition, the bank increased its deposits by 14% with low cost current saving deposits increasing by 20%. 2.11 Special assets management NAFA is non banking finance company with a license to perform asset management services as per the NBFC rules, 2003. NBP invest in NAFA as its core is investment management, floating of mutual funds, investment portfolio management services that they are providing to NBP. 2.12 International operations: NBP opened its first branch in Riyadh, Saudi Arabia in August 2010. They will add great value to the overseas franchise of the bank and will focus capturing the large volume of trade business, home remittances and Hajj/ Umrah operations. In addition the banks subsidiary in Kazakhstan further opened two more branches, NBP presence in Central Asia increased to 6 branches while having total overseas presence including Almaty subsidiary at 26 branches. 2.13 Operations NBP is migrating from fee based mode to free of charge remittance services and for this prupose NBP has now 20corresponding partners across the globe. This helps overseas Pakistanis in hassle free remittances to their loved ones in Pakistan in real time. On the other hand the beneficiaries have the SMS alert facility of their remittances and can collect their payments from any of the NBP branches in the country as a matter of recognition, remittance services. They finally believe aggressively that marketing strategies and have effectively utilized various marketing moods to promote their remittance services both in overseas and domestic markets. They are continuously striving to join hands with new overseas partners to expand their reach across the globe.

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2.14 Risk management Risk management function has been restructured and made independent of all risk taking and approving units. Its functional reporting is to the Board of Directors and administrative reporting to the President of the bank. An executive risk management committee has been established to emphasize on the banks commitment to a robust risk management process and risk culture. In compliance with the risk management guidelines, issued by SBP, an operational risk management unit has been established. An operational loss database, risk & control self assessment (RCSA) exercise and key risk indicators (KRIs) are being developed and will subsequently be implemented. A separate credit risk architecture unit has also been formed for formulation/ proposition of credit risk strategies, policies, credit assessment methodologies, credit portfolio/sector management. A dedicated Basel II unit is responsible for managing the Basel II project in close coordination with the consultant and with the active support & involvement of other functions across the bank. 2.15 Credit to AGRO Credit proving to AGRO is based on proper strategic work that consists of provision of reliable infrastructure for expansion of existing agriculture financing making it capable to respond to the customer need. Encouraging agriculture development through capacity building of the farmers for optimum utilization of credit for farm and non farm needs. 2.16 Treasury Management Treasury is the hub where the local currency and foreign exchange books of the bank are managed. Our treasury plays a pivotal role to ensure optimum profitable utilization of the banks funds both in foreign exchange and money market. The bank emerged as a leading performer in the foreign exchange market in terms of profitability and maintains the status as one of the best foreign exchange banks and an efficient and active market maker both in foreign exchange and money markets. NBP ws declared the Number 1 Primary Dealer (PD) by State Bank of Pakistan for the year 2010. The bank is also the recipient of best Foreign Exchange award by Global Finance for the year 2008, 2005 and 2004 which is a testament of the banks superior expertise in this area.
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2.17 Human resource function

The whole NBP family comprises of committed and dedicated members with passion to serve in their respective functional areas. The Bank has challenging work environment where merit and performance help the individuals to explore their true potential. As a caring employer the Bank enables the employees to excel and grow in highly congenial employment conditions and culture. The career path is full of challenges and opportunities. The Bank has absolutely open culture where members share and communicate freely.

2.18 Information technology National Bank of Pakistan is embarking on industry leading technology initiatives to upgrade and implement new application solutions to meet the challenges of growing competition and enhanced business requirements. This will be a transformational change which will greatly improve operational efficiency and controls, customer service and facilitate launch of new banking products. During the year, in order to facilitate Pakistan Army, we installed 139 ATMs at various army nominated locations across the country providing automated financial facility to the troops at their own places. Besides this we are expanding our ATM network and new machines are being installed at various locations. The bank also has started nationwide online connectivity program to connect all the branches to communicate with each other. This will be a milestone in establishing online network and a pre requisite for core banking implementation. 2.19 Organization Brach Structure Chart

M ae a gr n

A on n c ut t c a Ifr a n n mi o to

C hr ai se

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Chapter 3 Products and services at NBP Khola Kehal Branch

3.1 Departments in NBP Khola Kehal Branch Abbottabad For proper functioning of all the activities, the bank has divided its operations into different departments that would be discussed next. These departments are as under: 1. General banking departments. 2. Account department. 3. Remittance department. 4. Advances department. 3.1.1.1General banking Inquiry. Remittances. Deposits. Cash Department. Utility Bills (gas, electricity, telephone). 3.1.1.2 Inquiring Account balance. Remittance information. New account opening. Cheque book. Other products and drafts information. 3.1.1.3 Deposit Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rates borrowed and lend from their spread or gross profit. Therefore, I can rightly state that deposits are the blood of the banks which cause the body of an institution to get to work. 3.1.1.4 Cash department The following books are maintained in cash department: Receiving Cashier Books
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Token Book Paying Cashier Book Scroll Books Cash Balance Book

When cash is received in counter, it is entered in the Scroll Book and Receiving Cashier Book. At the close of the day, these are balanced with each other. When the cheque or any negotiable instrument is presented at counter for payment, it is entered in the Token Book and Token is issued to the customer. The Token and the cashier make entry in the Payment Book and the payment is made to payee. At the close of the day, the Token Book and paying Cashier Book is balanced. The consolidated figure of receipt and payment of cash is entered in the Balance Book and drawn closing balance of cash.

This is very important department because cash is the most liquid asset and mostly frauds are made in this department, therefore, extra care sis taken in this department and no body is alloId to enter or leave the area freely. Mostly, cash area is grilled and its door is under the supervision of head of that department. Officer checks the books maintained in this department. 3.1.1.5 Utility bills All branches of NBP are providing this facility for the residential near branch surrounding the facility to pay out their utility bills that are of gas, electricity, and telephone at cashier section. 3.1.1.6 Remittance department Basic function of remittance department is to transfer out funds in the following two ways:
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Local remittance: Local remittance means to transfer the funds among domestic branches by telegraph, pay order etc. Foreign remittance: Foreign remittance is used to transfer funds from foreign branches of NBP to national branches. It is much more quicker than the western union.

3.2 Product Lines: NBP products lines are mostly divided into three board Deposit Related, Advances Related and Remittance related. Deposit Related Advances Product NBP Karobar Related Remittance Products NBP Pakremit Related

Products NBP Premium Aamdani

NBP Premium Saver

NBP Saibaan

NBP Advance Salary

3.2.1 NBP Premium Aamdani: National Bank of Pakistan in its saving account launch a premium product in which at a minimum deposit of 200 thousands they are offering a returns at 11% yearly. So this scheme in saving accounts is yielding more returns then as compare to the other banks. In this scheme investment period is four year. Main features of this scheme are listed below Amount of investment required from Rs. 20,000/- to Rs. 5,000,000 investment period is 5 years Free Demand Draft, Pay Order and NBP Online Aasan Banking Free Cheque Book / NBP Cash Card (ATM + Debit) Financing facility available upto 90% of the deposit value Profit paid every month as follows:

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Period 1st year 2nd year 3rd year 4th year 5th year 3.2.2 NBP Premium Saver

Profit Rates 7.50% 8.50% 9.50% 10.50% 11%

Unprecedented Safety Unprecedented Return Minimum saving balance of Rs, 20,001 and a maximum balance of Rs. 300,00. Free NBP cash card. Two debit withdrawals in a month and no limit number of deposit transactions. Profit calculated monthly and paid on half yearly basis. Free NBP cash card convinces of NBP online Aasan Banking. Two debit withdrawals in a month and no limit on deposits. Profit calculated on monthly and paid on half yearly basis. 3.2.3 NBP Karobar Tele-Centre In NBP karobar scheme with a minimum down payment of 10% of asset price a loan up to 200,000 are given. Tenure of NBP karobar scheme is 1 to 5 years. Life and disability insurance is paid by government of Pakistan. In this scheme the age limit eligibility is betIen 18 to 45 years. NBP karobar provide self-employment in the following categories: a. b. c. d. e. f. NBP Karobar Utility Store NBP Karobar Mobile Utility Store NBP Karobar Mobile General Store NBP Karobar Transport NBP Karobar PCO NBP Karobar

3.2.4 NBP Saibaan: NBP Saibaan is another brand of NBP which provide services of Home Finance Home Renovation, home construction purchase of land plus Construction, Balance Transfer Facility (BTF)
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3.2.5 Home Purchase (House or Apartment) Product Detail Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)

3.2.6 Home Construction Product Detail Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)

3.2.7 Home Renovation Product Detail Financing Amount Upto 15 Million Financing Period 3 to 15 Years Debt to Equity 70:30 (Maximum)

3.2.8 Purchase of Land and for Construction Product Detail Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 70:30 (Maximum)

3.2.9 Re-Financing (Balance Transfer Facility (BTF) Product Detail NBP also provide facilty that if some one have Home Finance Facility outstanding with another bank he or she can transfer to NBP through a hassle-free process.
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3.2.10 NBP Advance Salary: National bank of Pakistan provide urgent funds facility to its employees of federal, semi governments, and corporate employees by NBP Advance Salary Scheme, which allow to draw three months salary in one go. This facility is available to permanent employees of the: Federal and Provincial governments Semi-governments, autonomous, semi-autonomous, local bodies, and Other corporations approved by NBP

government corporations

No guarantee, collaterals, or insurance is required to avail this scheme. NBP gives the facility to repay the excessive amount within 1 to 36 months. The procedure is very easy, just fill the application form and choice betIen 1 to 36 months and take your NBP Advance Salary within 3 days after submitting your form. NBP Advance Salary , the leading personal loan product of the country, is maintaining its inimitability ever since it was launched. This was only possible due to its swift growth and remarkable loan disbursement of over 118 billion. Employees can avail up to 20 net take home salaries with easy repayment

installments. Its hassle free acquisition with no prior formalities and easy availability in a short turn around time are attributed as the most distinguishing features of the product. The product is offered countrywide

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Chapter 4 Analysis of NBP

Financial Analysis is actually assessment of the effectiveness with which funds (investment and debt) are employed in a firm, efficiency and profitability of its operations, and value and safety of debtors' claims against the firm's assets. It employs techniques such as 'funds flow analysis' and financial ratios to understand the problems and opportunities inherent in an investment or financing decision. For Financial Analysis of National Bank of Pakistan I collected four latest years data of the bank from annual reports of bank and arrange them in a single table. Then Vertical and Horizontal Analysis of Income Statement and Balance Sheet are done and at the end Ratio Analysis and results interpretation 4.1 Horizontal Analysis The process of dividing each expense item of a given year by the same expense item in the base year is called horizontal analyses. This analysis allows for the exploration of changes in the relative importance of expense items over time and the behavior of expense items as sales change. Horizontal analysis is the analytical way to determine financial performance from the last year/quarter to the current year/quarter. When using this analytical way of determination you will be able to figure out the dollar amount change and the percentage change as Ill. This is important because it will show how a bank actually is doing compared to what it looks like in the statements
4.2.1 Interpretation of Horizontal Analysis of Income Statement

For the interpretation of horizontal analysis I take some main items of income statement and then interoperated with time frame. Their results are shown in the table below.
2006 Markup Revenue Markup Expense 100% 100% 2007 150.09% 132.09% 2008 180.87% 231.40% 2009 231.34% 382.58% 2010 251.22% 399.34%

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Provision for Advances Provision for Investments Bad debts written off Net Markup Interest NON-MARKUP INCOME Fee & Commission Dividend Income Exchange income Other income Total non-markup income Total Income NON-MARKUP EXPENSE Admin Expenses Other Provisions Other Charges Interest Expenses Profit Before Tax Profit After Tax

100% 100% 100% 100%

125.70% 288.53% 22.90% 131.37%

432.96% 151.80% ------123.36%

451.35% 246.30% ------126.67%

470.40% 312.66% ---------139.47%

100% 100% 100% 100% 100% 100%

124.72 168.27 110.63 352.91 129.49 130.79

160.86% 167.82 329.20 700.27 84.67 139.17

181.26 111.74 251.16 310.51 202.56 73.02

195.63% 115.82% 142.36% 259.84% 235.19% 120.65%

100% 100% 100% 100% 100% 100%

119.79 8.71 329.59 118.73 138.06 133.93

161.92 376.96 922.96 169.83% 147.25 149.76%

201.13 313.05 508.88 204.06% 120.74 81.12%

216.325 197.25% 490.55% 245.21% 140.43% 110.69%

If I see in the horizontal analysis, however the bank is improving its performance as earning of the bank is increasing in each next year but its is not maintaining the same rate of change, same pattern is observed in net interest earnings. On the other side percentage of the bank interest expense is decreasing in later years. But banks net earning after taxation and ultimately earning per share is showing negative sign in the later years, it is showing that bank profitability is decreasing in later years as compared to the previous.

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4.2.2 Horizontal Analysis of Balance Sheet

ASSETS Cash and balance with 2006 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2007 133.25% 120.80% 131.82% 134.50% 126.58% 274.19% 129.46% 131.93 405.58% 123.50% 127.72% 201.78% 131.67% 114.23% 128.68% 153.44 % Share capital Reserves Inappropriate profit T. liabilities & T.Equity 137.99% 127.66% 234.06% 153.44% 2008 149.59% 123.61% 105.19% 108.81% 153.61% 256.15% 186.08% 141.54 586.91% 462.02% 134.85% 151.98% 168.77% ----142.51 % 135.13 % 151.79% 161.41% 270.77% 135.13% 182.16% 183.59% 316.66% 157.68% 190.32% 197.21% 325.16% 170.29% 2009 162.68% 91.57% 63.14% 138.63% 176.77% 265.98% 247.76% 163.44 610.00% 517.05% 156.75% 256.35% 179.89% ----164.31% 157.68% 2010 172..69% 80.25% 55.12% 142.47% 182.29% 280.91% 290.81% 180.55% 635.44% 560.29% 170.55% 269.31% 196.53% ---------170.11% 169.54%

treasury bank Balance with other banks Lending to Financial Inst Investments Advances Other assets Operating fixed assets Total Assets LIABILITIES Bills payments Borrowings Deposits and other accounts Finance lease Other liabilities Deferred tax liabilities Total liabilities SHAREHOLDERS EQUITY

Interpretation: In the horizontal analysis of Balance Sheet, same trend is observed as it was seen in horizontal analysis of income statement. In the later years rate of growth in total assets is decreasing as compared to previous years is very low. On the other hand, banks total liabilities are also decreasing in the later years. Ultimately due to decrease in the rate of assets and liabilities nets assets growth rate is also decreasing. 4.3 Vertical Analysis: A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is
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represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner are that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business. 4.3.1 Vertical Analysis of Balance Sheet:
ASSETS Cash & balance with treasury bank Balance with other banks Lending to F. I Investments Advances Other assets Oper fixed assets Total Assets LIABILITIES Bills payments Borrowings Deposits & other accounts 1.67% 1.84% 79.02% 0.93% 1.43% 77.66% 1.24% 4.94% 76.42% 1.12% 4.79% 76.93% 1.05% 4.60% 76.10% 2006 12.38% 2007 12.45% 2008 13.02% 2009 12.26% 2010 13.21%

6.40% 3.62% 22.03% 49.77% 4.27% 1.52% 100%

4.92% 2.82% 27.66% 44.70% 4.07% 3.40% 100%

4.68% 2.094% 20.8895 50.50% 5.4% 2.96% 100%

3.00% 2.07% 23.04% 50.33% 6.28% 2.66% 100%

2.90% 1.90% 29.35% 52.69% 7.25% 2.35% 100%

Finance lease Other liabilities Deferred T L Total liabilities SHAREHOLDERS EQUITY Share capital Reserves Inappropriate profit Revaluation Total equity T.Liabilities & T.Equity

0.00% 4.19% 0.04% 87.10%

0.00% 4.05% 0.67% 84.74%

.003% 4.84% 87.47%

.0045% 4.47% 87.34%

0.60% 4.20% 87.29%

1.12% 2.19% 5.05% 4.55% 12.90% 100%

1.07% 2.07% 5.95% 6.12% 15.26% 100%

1.09% 2.43% 6.41% 2.57% 12.52% 100%

1.14% 2.40% 6.49% 2.26% 12.66% 100%

1.19% 2.50% 6.70% 2.13% 12.80% 100%

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Interpretation: In the vertical analysis of Balance sheet the results show that the major portion in the accounts is of advances that is ranging frown 40-50% through out this period. This shows that bank has invested major portion of its assets in advances, which are a source of rent for the banks. Bank is also maintaining sufficient cash balance for its daily transactions. The results show that in liabilities account major portion is of deposits and it should be in every bank. In equity section results show that in later share banks profit is increasing. 4.3.2 Vertical Analysis of Income Statement
2006 Markup Revenue Markup Expense Gross Profit Provision for Advances Provision for Investments Bad debts written off Net Markup Income NON-MARKUP INCOME Fee and Commission Dividend income Exchange income Other Income Total non-markup income Total income NON-MARKUP EXPENSES Admin Expenses 30.48% 28.09% 29.8% 29.8% 33.86 % Other provisions 0.04% 0.33% 1.22% 1.22% 1.24% 13.93% 6.56% 3.02% 1.42% 27.58% 90.58% 13.41% 6.45% 2.06% 0.29% 26.78% 83.95% 13% 4.72% 6.5% 2.04% 26.93% 69.74% 11.45% 2.46% 3.884% 0.708% 58.77% 28.60% 10.00% 3.12% 4.32% 0.901% 62.35% 32.54% 100% 31.63% 68.37% 6.97% 1.61% 0.01% 62.99% 2007 100% 33.50% 66.50% 9.34% 0.08% 0.08% 57.16% 2008 100% 33.19% 60.80% 17.38% 0.61% ------42.80% 2009 100% 50.66% 49.33% 14.16% 0.77% ------34.36% 2010 100% 65.89% 59.60% 11.30% 0.96% ------32.65%

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Other charges Total non-markup expense Profit Before Tax

0.47% 30.92% 59.66%

0.03% 28.40% 55.49%

0.95% 32% 37.74%

0.95% 32% 37.74 %

0.97% 36% 40.12 % 12.40 % 27.20%

Provision for Taxes

21.06%

17.85%

12.37%

12.37 %

Profit After Tax

38.60%

37.64%

25.36%

25.36%

Interpretation: In vertical analysis of income statement each element is divided by the total earnings. The result show that interest expense are appearing as a major part in the income statement, as value of markup expense is ranging from 30-40% through out this period. Very percentage of bad debts approximately to 0% show s that banks recovery rate of loan is very high. If I see at the percentage value of total expenses, I see that its value is decreasing showing that bank is efficiently decreasing its total expenses. It contributes positively to the banks profitability. Net income is showing some mixed (increasing and decreasing) trend. Overall, the results show that banks performance is satisfactory. 4.4 Ratio Analysis 4.4.1 Liquidity Ratios: Liquidity ratio, expresses a company's ability to repay short-term creditors out of its total cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it means fully covered. Various liquidity ratios and their formulas are given below. Ratio Current Ratio Cash Ratio Quick Ratio 2007 1.0 0.388 .89 2008 .49 .21 .46 2009 0.43 0.20 0.56 2010 0.55 0.19 0.69

position.. NBP is in position to pay all necessary payments as there is a continuous improvement in NBPs liquidity position. Although in banks it is difficult to keep these ratios up because banks mainly depend upon short term liabilities but still
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NBPs improvement is appreciated. High current ratio of NBP gives a measure of protection or cushion for lenders investor and depositors of bank. 4.4.2 Leverage Ratios:

company's leverage relates to how much debt it has on its balance sheet, and it is another measure of financial health. Generally, the more debt a company has, the riskier its stock is, since debt holders have first claim to a company's assets. This is important because, in extreme cases, if a company becomes bankrupt, there may be nothing left over for its stockholders after the company has satisfied its debt holders. Description: If I look at the Debt ratio and Debt/Equity ratio it is clearly

understandable that the bank has greater portion of debts in its capital structure. Still management need to change its capital structure and higher portion of equity may result in better results, as it is present in times interest earned ratio which is showing that increase in the equity is putting healthy effect in returns. 4.4.3 Profitability Ratios: Ratio Return on Asset (ROA) Return on Equity (ROE) Ratio Ratio Debt Ratio Debt/Equity Ratio Times Interest Earned 2007 2.7 20.8 2007 2007 .84 5.55 2.17 2008 1.89% 15.08% 2008 2008 .87 6.98 2.94 2009 1.96 13.20 2009 2009 0.90 7.02 3.14 2010 2.23 16.21 2010 2010 0.93 7.19 3.26

Ratio 4.5 Ratio Analysis Interpretation: In the ratio analysis firstly, the results of liquidity ratios show that the bank is maintaining sufficient amount of liquids assets to meet its daily requirement. As the bank transactions deals with cash, so each bank should maintain high levels of liquidity to meet its daily requirement. As the liquidity level required in the banking industry is high as compared to the other sectors. The negative value of net working capital is negative showing that the value of current liabilities is greater than current assets.

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Coming towards the debt ratios, the results depict that the level of debt in the capital structure of the bank is very high. So, high level of debt is not too good. Bank should reduce it level of debt. This high level may some how contribute to the high profitability, As it is generally observed that highly levered firms are highly profitable. In the profitability ratios, the results are satisfactory bank is having positive Earning per Share (EPS). Return on Assets, return on equity and return on investment are showing that returns are satisfactory. 4.6 Profitability Ratios: Profitability ratios are used to assess a business' ability to generate earnings as compared to expenses over a specified time period. Profitability ratios measure how Ill a company is performing by analyzing how profit was earned relative to sales, total assets and net worth. D&B uses three key financial business ratios to measure a companys efficiency:

Return on Sales (Profit Margin) Ratio This ratio measures the profits after

taxes on the year's sales. The higher this ratio, the better prepared the business is to handle downtrends brought on by adverse conditions. This ratio is calculated using the following formula: Net Profit After Taxes Net Sales

Return on Assets (ROA) Ratio This ratio shows the after tax earnings of

assets and is an indicator of how profitable a company is. Return on assets ratio is the key indicator of the profitability of a company. It matches net profits after taxes with the assets used to earn such profits. A high percentage rate will tell you the company is Ill run and has a healthy return on assets. This ratio is calculated using the following formula: Net Profit After Taxes Total Assets

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Return on Net worth Ratio This ratio measures the ability of a company's

management to realize an adequate return on the capital invested by the owners in the company. This ratio is calculated using the following formula: 4.7 SWOT analysis: The SWOT analysis is an extremely useful tool for understanding and decisionmaking for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, weaknesses, Opportunities, and Threats. Information about the origins and inventors of SWOT analysis is below. The SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition, or any other idea. SWOT analysis also works Ill in brainstorming meetings. Use SWOT analysis for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports. Companies can also use SWOT analysis exercises for team building games. See also PEST analysis, which measures a business's market and potential according to external factors; Political, Economic, Social and Technological. It is often helpful to complete a PEST analysis prior to a SWOT analysis. 4.7.1 Strengths: National Bank of Pakistan is government owned bank that is why Pakistani nation has a trust on the bank that their deposits are secured. Due to this reason the deposits of the banks are increasing with the passage of time. As I see from four year table of income statement because of this NBP has advantage that all the government employees have salary account in NBP which help to maintain huge portion deposits without any marketing efforts beside this all the government payments and remittances are made through this bank which is also a huge and unique advantage to this bank. National Bank of Pakistan is enjoying with deposit of different Govt. organization like Pakistan Railways, PIA, WAPDA, Sui-gas due to agency arrangements. The solvency of National Bank of Pakistan is considered very good because it is backed by government finances whenever bank faces the problem of obligatory and solvency. This is why in general public the rating of National Bank of Pakistan in term of security is very high.

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National bank of Pakistan is having the largest branch network with in the country as Ill as beyond the national boundaries which is also a plus point in the rating of bank. National Bank of Pakistan also having a wide range of branches in rural areas of Pakistan because of this NBP is having accessibility to the funds of people living in the rural areas of the country. In Pakistan NBP having 1500+ branches and are fully commercials none other bank in Pakistan have such amount of branches.

Another unique function of National Bank of Pakistan is that it is having chest branches in the cities where there is no branch of SBP.BSC. These chest branches also perform most of the functions of State Bank of Pakistan. To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorized selected branches of scheduled banks to establish Currency Chests. These are actually storehouses where banknotes and rupee coins are stocked on behalf of the State Bank. NBP work as agent of State Bank of Pakistan in which NBP is required to coordinate with other banks.

National Bank of Pakistan is having a comprehensive range of financial products in order to facilitate the customers so that their all banking needs could be fulfilled under one branch. NBP having following services to their account holders.

Credit Cards Foreign Exchange Bearer Certificates National Bank Daily Accounts Travelers Cheques etc.

4.7.2 Weaknesses: Lack of Implementation of Rules and Regulations due to political interference. Because National bank of Pakistan is a govt. owned organization so there is a lack of implementation of rules and regulations and these deviations from rules and regulations effect on the performance of the bank. Administrative expenses of bank are increasing day by day and with huge amount which effect on income on Profit after tax and earning per share. If I

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see in income statement National bank of Pakistan should focus on decreasing their administrative expenses. As I have already mentioned the benefit of have experience staff in National Bank of Pakistan. But now, here it becomes weakness of the bank because experience is nothing without education. Old staff is not so much educated and skilled with the use of new technology. National Bank of Pakistan needs fresh blood to handle new invented technologies in the field of banking. So this is one of weaknesses of the bank National Bank of Pakistan one of weakness is that its bad debts are increasing from previous years. Bad debts are defined as A Bad debt is an amount owed to a business or individual, for which there is zero probability of collection. This is not to be confused with Doubtful debt which is and amount for which payment is unlikely. At National Bank of Pakistan increases in Bad Debts may be due to political interferences. Union has strong impact on performance of National Bank of Pakistan. Most of time employee union tries to impact on the rules and regulations and recruitment policies of banks. They try to impose their orders on top management and top management is unable to punish the violators and shrieks. 4.7.3 Opportunities: The basis need of the consumer such as housing, transportation and other durable goods are not adequately financed by the banks. So by initiating these services, the bank can enjoy with more funds. National bank of Pakistan need to uplifts their services of consumer banking like home building finance, student loans, Kissan Loans and Credit card services so as to get more potential of funds. For National Bank of Pakistan Opportunities also exist to invest in foreign markets NBP can enjoy handsome return its funding base by investing in capital markets in the foreign countries. Until recently the bank perceived as purely commercial banking entity so in order to expand its business the bank may start investment banking by investing in the portfolio of handsome return.
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NBP by establishing new branches in foreign countries can expand its business and can enjoy with the profit. National bank of Pakistan can enhance its operation by launching internet banking facilities, online transaction, Internet money transfers and many others. Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society..

4.7.4 Threats: The no. of banks in Pakistan is increasing with the passage of time. So due to poor working condition and poor customer service it may be possible NBP will lose its market share in future. In our country, the rate of inflation is increasing along with the unemployment. So due to the increase in price of the products, the savings of the nation is decreasing with the passage of time. So it is the threat for the banking sector. In the future, the deposits of the bank will decrease. On NBP Govt. policies have strong impact. A slight change in Govt. policies may affect the performance of the bank. The bank has to work with in the regulation frame work.

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Chapter 5 Conclusion and Recommendations

5.1 Recommendations: Based on the SWOT analysis of National bank of Pakistan it is observed that the bank like other public sector industries has not been showing up to mark performance. There is long list of weaknesses that is given on the previous pages. Most of them are going along since long time and that all efforts made to remove them have not succeeded. On the basis of SWOT analysis of bank the following suggestions and recommendations are given for future enhancement. Bank should try to get rid of political interferences and influences in recruitment and policy making so that bank should be able to compete in the industry with prudent and strong policies. National Bank of Pakistan should adopt the policy of equal opportunity employment as it is observed that announced jobs are quota based. When giving the loan to client, the Bank must carefully analyze the past six months transaction history of the borrower. This will help in judging the dealing behavior and financial status of the client. In most cases, this thing is not properly done and it is the major reason of default of many clients. The Bank should try to give more loans to the small borrower as the past history and Analysis shows that most of the loans given to the corporate borrower have converted into bad debts. National Bank of Pakistan should cover its administrative expenses as a lot of portion of bank profits are eaten by these expenses. Policies and guidelines should be made so as to count down these expenses. Better and comprehensive long term and short term planning should be made to forecast the future needs Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirements. Foreign experts can also be called for this purpose. Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. More
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reading material should be brought / provided in the reference Room, it should be relevant and its purpose should be to educate the employees with the advance studies in their field. The employees should be provided the opportunities to attend and participate in seminars and lectures on banking. This is a routine practice that in order to give personalized services to the customer, bank staff tries to fill all the columns of AOE with their own handwriting, which is wrong. AOE must be filled in by the customers. Bankers should avoid filling in the AOE because it can create problem if the address, title of account or any other information provided by the customer has not been written properly. Customer may be affected or he may claim that this information was not provided by him, but if AOE is filled by the customer then banker cannot be held responsible for any incorrect information provided by the customer.

5.2 Conclusion If I have to express my experience of internship in National Bank Khola Kehal Branch Abbottabad I would briefly say that National Bank is a good Organization in the way that anybody can join it for his/ her long-term career. Overall working environment is comfortable. Management of branch cares a lot of its employees and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. Employees at Bank are quite efficient. As the branch is renovated and new employees are hired, its employees have to bring their bank among the list of good banks. Therefore, they work more than their working hours and it is all according to their will. It also shows their loyalty, commitment to organization. Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical. All the customers are entertained individually. Same kind of behavior and attention is given to all the customers. Getting ideas for improvement from customer side is a new idea and that is working very well in National Bank. All the customers

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are asked to fill a suggestion form and the standards of the bank are improved through them. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors. In bank, the work is done on computers as well as manually. All the entries are made in computer. Balance is fed into the computer. This increases efficiency of the bank. During my internship training I gathered information regarding how a successful bank operational aspect decorticated with the practical. I found my internship training at National Bank Khola Kehal Branch Abbottabad to be a very rewarding experience. The training was beneficial because it helpful me to aware a real life working environment. So far my learning is concerned; all the employees at branch were quite cooperative. They helped me to understand the activities of a bank to possible extent. Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind. Besides their ever going activities they never get irritant by my questioning. I had made an honest efferent to present the working & operation at Branch in simplest way. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff.

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References: Annual Report of NBP 2010. Annual Report of NBP 2009. Annual Report of NBP 2008. Annual Report of NBP 2007. Van Horne, J.C and J.M Wachowiez ; Fundamentals of financial management 11th edition. Gerald I. White, CFA, Ashwinpaul C.Sondhi, Ph.D., and Dov Fried, Ph.D; The analysis and use of financial statements 3rd edition. Banking statistics of Pakistan. State bank of Pakistan Dept, of Statistics 5th 256. (Karachi), N. B. o. P. (1966). "The history of the National Bank of Pakistan." pp. 2531 Gibson, Charles H, (2002), Financial Statement Analysis, Prentice Hall International Corporation, 7th Edition. Consult with NBP Employees

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