http://www.scribd.

com/doc/18188187/NBP-Internship-Report
http://www.scribd.com/doc/13377156/Final-Repot-Nbp
http://www.scribd.com/doc/13314549/Internship-Report-of-NBP

• Acknowledgement

First and foremost, we would like to thank to our supervisor of this project, Miss
Shyamala for the valuable guidance and advice. She inspired us greatly to work in this
project. Her willingness to motivate us contributed tremendously to our project. We also
would like to thank her for showing us some example that related to the topic of our
project.
Besides, we would like to thank the authority of Multimedia University (MMU) for
providing us with a good environment and facilities to complete this project. Also, we
would like to take this opportunity to thank to the Centre of Affiliated Diploma
Programme (CADP) of Multimedia University (MMU) for offering this subject,
Computing Project. It gave us an opportunity to participate and learn about the operation
of flights ticket reservation. In addition, we would also like to thank Malaysia Airline
System (MAS) which provide us valuable information as the guidance of our project.
Finally, an honorable mention goes to our families and friends for their understandings
and supports on us in completing this project. Without helps of the particular that
mentioned above, we would face many difficulties while doing this project.

• Table of Contents
• Executive Summary
•
After acknowledgement I would like to make the executive
summary of my report.In this comprehensive report, I have
discussed about every major aspect of thebank, which I observed
during my internship. Along with it, the processes,policies and
procedures of the bank have also been discussed in detail.
The main purpose of internship is to learn, by working in
practical environmentand to apply the knowledge acquired,
during the studies, in a real world scenarioin order to tackle the
 problems. In this report the detailed analysis of theorganization
has been done and all the financial, technical, managerial
andstrategic aspects have been evaluated to analyze the current
position of theorganization. Along with it, the background
analysis, the prevailing competitionanalysis, the business
process analysis, and the internal environment andexternal
environment of the organization have been discussed and
therecommendations for the improvement have been made
wherever required.
During my internship program, I mainly worked with the
following departments:CREDIT, GENERAL BANKING and HOME
FINANCE, These departments havebeen discussed in detail and
all the policies and procedures have been described thoroughly.

In the end the learning and experiences section consists of all the
policies, processes, practices and procedures, which I have undergone
through and learned during my internship program. This report also
contains my perceptions about the employees’ satisfaction, motivation
level and the working environment of the organization. And I am sure
that this report will provide you a complete and clear image of
organization.

• Introduction:
• National Bank of Pakistan (the Bank) is engaged in providing commercial banking and related
services in Pakistan and overseas. The Bank commenced its operations from November 20, 1949
at six important jute centers in the then east Pakistan and directed its resources in financing of jute
crop. The Bank’s Karachi and Lahore offices were subsequently opened in December
1949.National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set
higher standards of achievements. It is the major business partner for the Government of Pakistan
with special emphasis on fostering Pakistan's economic growth through aggressive and balanced
lending policies, technologically oriented products and services offered through its locally,
 internationally and representative offices. The Bank also handles treasury transactions for the
Government of Pakistan as an agent to the State Bank of Pakistan (SBP). It operates 1,243
branches in Pakistan and 18 overseas branches (including the Export Processing Zone branch,
Karachi). Under a trust deed, the Bank also provides services as trustee to National Investment
Trust (NIT), including safe custody of securities on behalf of NIT. The Bank’s subsidiaries
include NBP Capital Limited, JSC Subsidiary Bank of NBP in Kazakistan, NBP Modaraba
Management Company Limited, NBP Exchange Company Limited, Taurus Securities Limited,
National Agriculture & Storage Company Limited and Cast-N-Link Products Limited. The Bank
holds 5.83% interest in Bank, Al-Jazira.

1. Brief History Of Company

• National Bank of Pakistan was established on November 9, 1949
as a result of deadlockwith India and the devaluation of the
Indian rupee where Pakistan much to India andBritish
consternation did not follow suit. The objective of establishing
the bank was toprovide much needed financing to the
agricultural sector, particularly to facilitate thebadly hit jute
trade. The bank then went on to become the sole agent of the
State Bank ofPakistan for handling provincial and federal
government receipts and payments.
• The paid up capital of National Bank is 4924.106 million rupees.
This is 14 percent of thecombined paid up capital of the 18 listed
commercial banks amounting to Rs.3.528billion. Such a large
paid up capital places National Bank at the number one slot in
theentire financial sector. Muslim Commercial Bank Limited and
Faysal Bank Limited areplaced second and third respectively on
basis of paid up capital. Meezan Bank Limited islast and smallest
on the list with a paid up capital of Rs.1170.450 million.
• The bank maintained its position as the largest bank deposit
holder in Pakistan. Theintegration of corporate and investment
banking efforts in enabling the bank to offerwider 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. TheU.K. Operations of the Bank were
merged with that of United Bank Limited to form aJoint Venture
Bank namely Pakistan Investment Bank (PIB) incorporated in U.K.
NBPhas 45% of share holding while the balance 55% is with UBL.
• On the retail-banking front, the bank successfully launched a
product “ghar ghartelevision” which not only brought additional
revenue but also served as a launching padfor similar initiatives.
NBP launched a housing scheme to cover all sections of the
societywith monthly income starting from as low as Rs.5000/- per
month. Branded as ‘NBPSaibaan’ (Housing for all), the scheme
offers a maximum loan of Rs.10 million inaccordance with the
debt burden criterion. Loans are available for Home
Construction,Home Purchase and Home Improvement. For Home
Improvement Loans the maximumamount is Rs.2.00 Million.
• NBP further consolidated its market position in the consumer
financing and its product“NBP-Advance Salary” has been availed
by approximately 475,000 customers. Overallloan growth was
also impressive as net advances increased by Rs.26 billion as
comparedto December 2003. Within a period of 18 months, NBP
has disbursed approximately 23Billion Rupees to over 425,000
customers under this scheme.
• National Bank of Pakistan through its branch in Kabul formally
commenced operations inAfghanistan from October 07, 2003,
thus becoming the first foreign commercial bank toopen its
branch in Afghanistan. Since then, another branch has been
added to it. NBP isone of the top performers in Afghanistan and
within a short span of one year; the depositbase of NBP’s
branches in Afghanistan has surged to Rs2 billion. With the
 opening oftrade prospects with India, the NBP would enter the
competitive Indian banking market.The State Bank of Pakistan
has instructed all commercial banks to switch to only onelink,
which would enhance the availability of numbers of ATM to
cardholders by manytimes. By the end of June 2004, NBP
planned to have a minimum 70 new ATMs atvarious business
centers. With the current figures at 30, NBP has fallen far short of
itstarget. Interestingly, 16 of the ATM’s are in Islamabad along,
that’s more than the numberin the rest of the country put
together.
• The National Bank has set a growth rate of eight per cent in its
deposit base during 2004,
• especially targeting deposits from the private sector. Recent
surge in domestic interest
• 5 ates poses no threat to the national economy. Blue chip
companies are still getting loans
• at competitive interest rates on the basis of their stable balance
sheets.
• The bank is witnessing major developments in the field of
technology. For facilitating thecustomers round the clock
payment of utility bills, around 100 kiosks are beingestablished
in the important cities. In addition, branches covering 80%
business areconverted into fully automated on real time basis.
• NBP is the most profitable bank in the history of Pakistan, with a
record high before Taxprofit of over Rs.9.00 Billion. It is already
the best bank in Asia and the 8th Best in theworld in terns of
return on capital in 2002 and declared as one of the top Banks
inemerging market - 2003, by global finance USA as well as Bank
of the year in 2001 and2002 by the Banker Magazine UK. In its
issue of March 2004, “Global Finance” has alsodeclared NBP as
“The Best Foreign Exchange Bank” in Pakistan. With the
 technology ofmodern cash flow based lending now in place, NBP
will remain a strong force in thenational development. In short,
NBP is the ‘Nation’s Bank’ with an internationalrecognition and
acclaim, working towards national development and raising the
overallstandard of the people of Pakistan.
• The year 2003 saw National Bank post the highest ever profit for
Pakistan’s financialsector. This can be attributed to the
successful strategic and operational repositioning ofthe bank by
management confronted with the dual challenges of appreciably
lowerspreads and intense competition.
• I believe that despite competitive interest rates, slim margins
and standard retail banking,NBP is expected to be a major
beneficiary of our economic revival due to its low costdeposit
base and branch network. At the end of the financial year 2003
NBP realized apre-tax profit of Rs. 9 billion, a Rs. 3 Billion
increase and a 50% growth over 2002.What is more encouraging
is that the boost to profitability was on account of the higher
netasset margin achieved from rebalancing of the bank’s earning
asset mix. This was evident from a 2% pretax return on assets, a
40% improvement over last year whereas the pre-tax return on
equity at 55% placed NBP in the top tier of Pakistan’s listed
corporate and financial institutions. Earning per share has
consequently almost doubled from Rs. 5.49in 2002 to Rs. 10.23,
the highest in the banking sector.

1. Nature of the Organization

 2. Unique Features of the company

3. Business Volume

4. Organizational Structure ( Chart )

Presidents,Directors/SEVPS,Procincial Chiefs/SEVPs,Regional
Chief/EVP,Zonal Chief/SVP, Vice President,Assistant Vice
President,Officer Grade-I,II,III , Clerical and Non Clerical Staff

• Introduction of section/departments where student has worked more

 • Application of class room learning in organization

The first thing which I noticed is that ground realities are different as compared to with
the theories or some factors which increase this difference like management practices,
economic conditions, political scenario and other external factors. But still we can’t deny
the importance of class room theories because they help us in great way in understanding
the operations of the bank. The courses of “Management” and “HRM” enable me that
how bank should be reactive toward changes like economic, cultural, and technological
and deals with the issues relating staff. I saw the practical implementation of “Marketing
Management” being followed in retail banking e.g. in new product development and
communicating its features to target audience. The subjects of International finance and
Analysis of financial statements helped me lot while I was working in the foreign
exchange department and while preparing this report. Also the subject of Accounting and
Financial management helps me while I was working in credit department. The financing
process of all international trade which modern banking made less complicated and more
secure have increased with the global-village concept in the world. For banks it is an
opportunity to grasp the maximum share as possible through being more efficient to
reach the customer.

• What has internee learnt in the Organization?

In the organization, my knowledge was very much enhanced. I learnt a lot, few of which are as: I got
the practical experience about how to work in a professional environment, it gives me the opportunity
to shape my behavior, attitude and my thoughts. I learnt the professional attitude of the people. I also
observed that one must have to be dedicated towards his/her job. I saw, how much it is necessary to do
the job in a friendly environment. What are the working relationships and responsibilities of
supervisors and their subordinates I observed that how to deal with the customers, what are their needs
and what do they expect from the service provider.
It also helped me to understand the importance of working in different types of environment and
conditions. Overall, I can say that it was my very good experience of doing my internship in NBP
Main Branch Multan.
• Financial Analysis

• SWOT & PEST Analysis

• STRENGTHS:
• National Bank of Pakistan is government owned Bank so it gains the confidence of general
public that their deposits are secured. Due to this reason the deposits of the bank are increasing
with the passage of time and bank is earning huge profits.

• NBP is enjoying with deposit of different Govt. organization like PIA, Railways, WAPDA,
BLT, Sui-gas due to agency arrangements.

• NBP also works as agent of SBP in those cities where the SBP branches are not working. So it
gives it a competitive edge on other banks. It also works as a clearing house on behalf of SBP.

• The NBP has corporate branches to fulfill the need of customers of all banking and financial
services under one roof through its corporate branches.

• In order to facilitate the customer the bank is offering the comprehensive range of financial
products which are as follows like ATM. NIDA, Foreign Exchange Bearer Certificates, traveler
cheques etc. Also products under NBP Karobar scheme. etc.

• The NBP plays an important role in the economic development of the country. It provides
loans and assistance to Govt. in the period of crises. In order to facilitate the nation the NBP
playing an important role in the development of the following sectors:
•  Environment

•  Health

•  Education
 •  Sports
• The NBP gains high profits due to its large operational network domestic and international.

• The introduction of the SWIFT system makes remittances faster and secure and is the most
beneficial service for the customers which gives NBP customers satisfaction.
•
• WEAKNESSES:
• The NBP working is still mostly on manual system. The latest systems, tools and technology is
not implemented fully. In the age of information technology the NBP procedures and systems are
outdated. That makes the work laborious and time consuming.

• The Bank has poor quality counter services in branches. Customers have to wait more for
encashment of their cheques or any other transactions. Also no proper attention is to given
customers here. Nepotism is very common.
Increased work load on some employees, but others are enjoying the lesser work load, also lack of
proper number of staff.

• Poor arrangements of sitting for staff. Due to which the customers have to face the wastage of
time. No systematic arrangement of staff.

• Online facility is not available on all branches, due to which the remittance of funds face the
problem of time wastage.

• The bureaucratic organizational structure is the hurdle in the way of effective decision making.

• The staff is incompetent and also being a Govt. organization the NBP face the typical Govt.
staff attitude.

• Being a Govt. bank the governmental influence is also a hurdle in the smooth running and
progress of bank.

• Poor working environment.

• There is lack of proper implementation of rules and regulation, also check on employees.

• The environment of the branch is not customer friendly.

• In house politics also an hurdle in the working and progress of bank.
•
• OPPORTUNITIES:
• Due to changing environment and competition, Nation Bank of Pakistan is also expecting to
introduce new products and services in the organization for the satisfaction of the customers

• It will also get the opportunity to introduce the participative management system where the
goals will be jointly set by the superiors and subordinates, performance will be reviewed
periodically and rewards will be given on the basis of performance.

• The bank by establishing the new branches in foreign countries can expand its business and can
enjoy with the profit.

• It can establish advisory service division in order to facilitate the customers in investing in the
securities.
• Secondary market operation, expansion of branches for capital management and equity
financing.

• Introduction of technology, latest techniques and use of computers to compete in the market.
And replacement of manual work with automation will help in future to compete.

• Introduction of young, energetic and educated staff such as fresh MBA’s as MTO will change
the typical environment of the organization and helps it to progress and compete in the market.
•
• THREATS:
• The establishment of new private financial institution is a biggest threat to the National Bank
of Pakistan. The introduction and rapid expansion of private and foreign banks adversely affects
the NBP
• 17
•
• The political influence and instability of Govt. is another threat to NBP

• The inability to cope with changing environment is another threat.

• The introduction of new and innovative products by private banks.

• The quality of human resource currently employed is another threat because the current staff is
unable and hesitant to cope with change in environment

• The rapid advancement in technology to provide better services to customers

• The threat of privatization.

•

• PEST ANALYSIS
• POLITICAL FACTORS
• The political situation of Pakistan is very dynamic. The rapid change in Govt. also influence the
rules and regulations of NBP. Also the policies of new Govt. towards NBP such as privatization
policy threat.
• ECONOMIC FACTORS
• Economic conditions of the country also have a strong impact on the organization. Our economy
is basically consumption oriented and also consists of middle class population so there is less
savings and a result people have less investing abilities and thinking.
• SOCIAL FACTORS
• Social factors also have a very important impact on the NBP. Being a bank of Govt. people feel
confidence on NBP, also feel secure to deal with NBP. Also there is need for Islamic banking
branches due to social pressure now a day. Other private banks have their separate Islamic
banking branches.
• TECHNOLOGICAL FACTORS
• The technological factors also affect NBP a lot. Technology is changing day by day, also become
necessity for efficient working. But the national bank has not technologically strong environment,
so not able to compete better with private and foreign banks which are fully computerized and
efficient due to adopting technological tools and techniques.

• Yours’ suggestions for the organization & if you were manager there?

During my internship in the NBP main branch I observed many things, which creates problems
and hurdles in the smooth working and progress of bank. These are not difficult to solve just needs
a serious attention. So I was a manager of NBP main branch : I would first pay my attention on
counter service improvement. Customer have to wait for a long time, which is not mostly due to
their own reason, also the attitude of counter staff was not cooperative. I would take steps for
 proper check and balance on staff and also provide them training to improve their behavior. Also
to eliminate unnecessary works time wastage that increase time of waiting of the customers. There
is no proper sitting arrangement for customers I would make proper arrangement for this problem
so that customers feel comfort when come to bank. The bank was lacking technological progress,
and most of work is done manually there is need to have proper and latest technology tools and
use of I.T should be implemented. So that work load would decrease and also the bank would
serve its customers efficiently and effectively. Also I would do something to make our all
branches online because it was a hurdle in fast transfer of funds, but the other banks using this
facility very efficiently. Also the behavior of all employees should be professional. I noticed
during my internship some employees who use bad language in the presence of customers, also
they have no much considered their dressing they should be properly managed. I will take steps to
overcome this problem.

SUGGESTIONS AND RECOMMENDATIONS

During my internship in NBP Regional head quarter multan, I observed and also from the different analysis
of this organization I found many things which are not going up to the marks and also need serious
consideration for solving these problems. I suggest some ways to overcome these problems.
THESE ARE AS FOLLOW:
The bureaucratic management system should be replaced with the participatory management system.

All branches of the Bank should be computerized for increasing the efficiency of its employees and for
the comfort of customers.
The behavior of the employees, especially those who are directly involved in public dealing are to be
strictly monitored and checked.

There is strong need of right sizing of employees.

The recruitment policy should be refined to bring young and energetic staff forward.

All rules, regulations, strategies should be reformed and implemented properly. There is a strong need
of a task force who monitors all this.

The bank should also participate into private ventures.

The bank should spend more on the promotional activities.

For the development of the Human Capital the bank should conduct a series of training program to
achieve the mission.

The political influence should be minimized on all type of the operations of NBP.

• Conclusion
• Appendix
1. Letter of Nomination
2. Letter of Completion of Internship
3. All other relevant documents

Format of Report

A 4 page, double page, hard binding

“14” Heading size format
“12” Text size format