Internship Report on NBP

Internship Report

NATIONAL OF PAKISTAN District Branch Rajanpur: Code (0392) Rajanpur, Punjab

Submitted To: Sir, Zahid Ali (Internship Supervisor)

Submitted By: Rahib Hussain Roll No: M. Sc Accounting & Finance-B-74 Session: 2010-2012 Submitted Date: 28-11-2012 Contact No: 0334-6681566

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Internship Report on NBP

Acknowledgment

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I would like to express my gratitude towards my parents, my internship supervisor Mr. Zahid Ali & member of National Bank of Pakistan for their kind co-operation and encouragement which help me in completion of this Internship Report.

I would like to express my special gratitude and thanks to Bank persons for giving me such attention and time.

My thanks and appreciations also go to my department in developing the Report and people who have willingly helped me out with their abilities.

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Internship Report on NBP

Dedication:

This internship report is dedicated to my Parents and all staff of NATIONAL BANK OF PAKISTAN Rajanpur branch from whom I got training without whose efforts, supervision and also prayers I would have been nothing. My parents who ever wished to see me as a successful man in every field of my life praying for their long and prosper life.

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Internship Report on NBP

Table of Content Topics Page No

Executive Summary………………………………………………………………05 Brief introduction of the organization’s business sector……………………….07 Brief history……………………………………………………………………….08 Vision…………………………………………………………………………….13 Mission…………………………………………………………………………...13 Organizational Hierarchy Chart………………………………………………...14 NBP Rajanpur Branch Hierarchy Chart……………………………………….15 Business Volume 2011………………………………………………………….....16 Product & Services………………………………………………………………..16 Product lines……………………………………………………………………...16 Treasury products………………………………………………………………..28 Derivatives products……………………………………………………………..28 Services…………………………………………………………………………..28 Trade services…………………………………………………………………….28 Competitor……………………………………………………..………………….29 Public sector……………………………………………………………………...29 Private sector………………………………………………….………………….29 Brief introduction of all the departments……………………………………….30 Cash department…………………………………………………………………30 Clearance department…………………………………………………………….30 Advances department………………………………………………………...... 30 Remittance department…………………………………………………………...30 Deposit department………………………………………………………………30 Foreign exchange department…………………………………………………….30 Credit & risk management………………………………………………………..30 Human resource management…………………………………………………….30 Comments on the organizational structure……………………………………...31 A brief introduction of branch where I did my internship……………………..32 Starting and ending dates of my internship……………………………………..32 Names of department in which I got training…………………………………...32 Detailed description of the tasks assigned during the internship program……32 Deposits…………………………………………………………………….....…..32 Account opening….……………………………………………………………….33 Advances department….………………………………………………………….33 Collections……………………………………………………………………...... 35 Trade finance……………………………………………………………………...35 Foreign exchange………………………………………………………………….35 Ratio Analysis…………………………….…………………………….…………..36 Future prospects of the organization……………………………………………..53 Conclusions…………………………….………………………….………………..53 Recommendations…………………………….…………………...…….…………54

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Internship Report on NBP

EXECUTIVE SUMMARY

This report is about my internship program with National Bank of Pakistan. In this comprehensive report, I have discussed about every major aspect of the bank, which I observed and perceived during my internship program. In this report you will be able to find the detail about the bank, right from its incorporation to the current position. Along with it, the processes, policies and procedures of the bank are also discussed in detail.

As the main purpose of internship is to learn by working in practical environment and to apply the knowledge acquired during the studies in a real world scenario in order to tackle the problems using the knowledge and skill learned during the academic process.

National Bank of Pakistan maintains its positions 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.

I have completed my Internship at National Bank of Pakistan District Rajanpur Branch Code (0392). I have started my six week internship on 23-07-2012 and got training regularly in various departments of the bank up to 15-09-2012

I have explained the working process of the departments that I have worked in as well as the departments functioning there. I worked in the following departments; Deposit, Advances, Accounts Opening, Bills & Remittances, Clearing Section, Government Section.

After my Internship at National Bank of Pakistan, I am of the view that, the bank has historically been the financial arm of the government and has enjoyed the blessings of state support in the form of huge public-sector funds and deposits.

The bank has to ensure that, quality of human resource is needed to register marked measurable improvement both in terms of skills and productivity. NBP, being the only

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Internship Report on NBP lending arm to the government for public sector development, should design, develop and deliver products and services for economic growth. NBP should provide sustainable financing for growth of industries of critical national importance such as energy, education, healthcare, transport, shipping, Research and Development. NBP should identify new venues for financing for economic growth- curbing poverty and unemployment

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Internship Report on NBP

Brief introduction of the organization’s business sector:

National bank of Pakistan incorporated under the national bank of Pakistan ordinance 1949 and listed on the all stock exchanges in Pakistan its head office is situated at chundrigar road Karachi. The national bank is engaged in providing the commercial banking and related services in the Pakistan and overseas. Bank also handles the treasury transactions for the government of Pakistan as agent to the ‟s. National bank of Pakistan (NBP) is one of the leading and first government recognized bank in Pakistan. NBP was established in November 9, 1949. And it started functioning from November 20, 1949. There are certain characteristics, which sets NBP apart from other nationalized commercial . The most important characteristics of NBP is that it works as an agent of the State Bank, where State Bank does not have a branch of its own, The NBP also acts as a trusty to the National investment trust (NIT), which is one of the premier financial institution of the country. It is charged with the responsibility to mobilize of the mobilizing small savings. The establishment of the NBP thus signaled the achievement of another milestone in the development of banking industry in Pakistan. National Bank of Pakistan is one of the pioneer financial institutions of the country, which is working actively in all the field of financings

National bank of Pakistan is the largest operating in Pakistan. It has redefined its role and has moved from a public sector organization in to a modern commercial bank. NBP headquarters in Karachi and has over 1200 branches country wide. National bank provide both public commercial sector banking services. NBP consolidated its position as one of the top players in corporate and investment banking of the country in 2010 and has built a strong customers relationship with the premier corporate clients NBP work to;  Meet expectations through Market-based solutions and products.  Reward entrepreneurial efforts.  Create value for all stakeholders.

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Internship Report on NBP

NBP aim to be people who;  Care about relationships.  Lead through the strength of commitment and willingness to excel.  Practice integrity, honesty and hard work. Believe that these are measures of true success. Bank has confidence that tomorrow it will be  Leaders in the industry.  An organization maintaining the trust of stakeholders.  An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment

Brief history:

National bank of Pakistan was established on November 8, 1949 through passing of a special ordinance in the national assembly. The establishment is came due to the reason when newly born country was facing economic crises. To get rid of the intervention of from the reserve bank of India a self owned and operated by the name of state bank of Pakistan was formed in July 1948 to carry on the responsibilities of issuing the currency and most importantly controlling the flow of money in side the country.

The bank commenced its operations from November 20, 1949 at 6 important jute centers in the East Pakistan and directed its resources in financing of jute crop. The bank‟s Karachi and Lahore offices were subsequently opened in December 1949.the bank acts as the agent to the state bank of Pakistan for handling provincial/federal government receipts and payments on their behalf. The bank has also played an important role in financing the country‟s growing trade, which has expanded through the years as diversification took place. Today the bank finances import/export business to the tune of RS. 52.7 Billion Where as in 1960 financing under this head was only Rs.1.54 billion After the quick growth of 50‟s NBP branches worked to establish itself as sound & stable Bank in the early 60‟s. The expansion efforts were put into force during these years and Marketing efforts were made to target specific market. The bank also plays a vital role in

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Internship Report on NBP financing the country‟s growing trade which was extended through the years as diversification took place. National bank has earned recognition and numerous awards internationally .it has been the recipient of the bank of the year 2001,2002,2004 and 2005 award by the banker magazine the best foreign exchange bank Pakistan for 2004,2005,2006 and 2007.it has also been presented a recognition award 2004 for having a gender sensitive management by WEBCOP AASHA besides other awards.

SUMMARY OF ACHIEVEMENTS AND GROWTH OF NBP:

The precise summary of National Bank of Pakistan regarding its countrywide and overseas operations is as follows:

 1949 National Bank of Pakistan (NBP) was established under the National Bank

of Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent

of the Central Bank wherever the State Bank did not have its own Branch. It also

undertook Government Treasury operations. Its first branches were in jute

growing areas in East Pakistan. Offices in Karachi and Lahore followed.

 1950 NBP established a branch in Jeddah, Saudi Arabia.

 The Bank in 1950 had one subsidiary „The Bank of ‟ on December4,

1947 by the former Bahawalpur State

 1955 By this time NBP had branches in London and Calcutta.

 1957 NBP established a branch in Baghdad, Iraq.

 1962 NBP established a branch in Dar-es-Salaam, Tanganyika.

 1964 The Iraqi government nationalized NBP's Baghdad branch.

 1965 The Indian government seized the Calcutta branch on the outbreak of

hostilities between India and Pakistan.

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Internship Report on NBP

 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.

 1971 NBP acquired Bank of China's two branches, one in Karachi and one at

Chittagong. At separation of East Pakistan NBP lost its branches there. NBP

merged with Eastern Mercantile Bank and with Eastern Bank Corporation.

 1974 The government of Pakistan nationalized NBP. As part of the concomitant

consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est.

1947).

 1977 NBP opened an offshore brain Cairo.

 1994 NBP amalgamated Mehran Bank (est. 1991).

 1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.

 2000 NBP opened a representative office in Almaty, Kazakhstan.

 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani

banks to operate in the UK. NBP and United Bank agreed to merge their

operations to form Pakistan International Bank, of which NBP would own 45%

and United Bank 55%.

 2003 NBP received permission to open a branch in Afghanistan.

 2005 NBP closed its offshore branch in Cairo.

Nature of National Bank of Pakistan

National Bank of Pakistan was incorporated in Pakistan under the National Bank of

Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. The bank is engaged in providing commercial banking and related services in Pakistan and overseas.

The bank operates 1,249 (2007:1,232) branches in Pakistan and 22 (2007:18) overseas branches (including the Export Processing Zone branch, Karachi). Under a Trust Deed,

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