INTERNSHIP REPORT ON NATIONAL BANK OF PAKISTAN
MBA 6th Sec-AF (Evening) 2012-2015
AKNOWLEDGEMENT
Without the encouragement and help of my fellow students, I perhaps would not have been able to write what I have written, it would be virtually an unending list of persons who helped me in one way or other but then it would be great injustice on my part not to mention the names of those who provided me with the much sought of information-moral support and cooperation.
People belonging to various walks of life contributed in one way or other, but teachers who heads this illustrious which in real terms provided me with foundation on which Inshallah, I will build my career much to the pride of my institution UOG and my respected teachers.
I am greatly indebted to SIR ASIF RAZA and my colleague’s SIR SAJJAWAL Hussain and Farhad Hussain, who in reality provided basic guidelines for the production of such notes. DEDICATION
At first dedicating this work to Almighty,
ALLAH
Without his mercy and sympathy I was not able to accomplish this work.
I also dedicated this work to my
PARENTS
Because their Prays & worm Hugs made me able
To achieve this success.
I also want to dedicate this to my honorable, Respectable
Polite & sincere.
TEACHERS
Because they always guide me towards right path of success. EXecutive summary
Firstly, I would like to tell you that have made a inclusive study of National bank of Pakistan. November 9, 1949, the bank was built-in with Rs.5crore to provide much desirable financing to the agricultural sector, predominantly to help the badly hit jute traffic. It is a trustee of public finances and has played a unique role as a commercial bank Operating through a network of 1531 domestic and 23 overseas branches it has been at the forefront of national economic development and contribution in the development of SMEs.
There are two major competitors of national bank of Pakistan are united bank limited (UBL) and Habib bank of Pakistan. The first branch was open in Chandigarh road Karachi and after, they make it the head office of the bank.
In addition, The National Bank Ltd. is on stage a vital role in the national economy through mobilization of up till now untapped local assets, promote savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank.
This report covers the experience, which I have gained during my stay at the National Bank Ltd., MANSOUR WALI, working as an internee. TABLE OF CONTENTS SR Sr. No. TOPICS Page No. Chapter.1 Introduction 1 1.1 History of “National Bank of Pakistan” 4 1.2 BRANCH NETWORK OF NBP 17 Chapter.2 Organizational Structure 23 2.1 ORGANIZATION CHART OF NATIONAL BANK OF 23 PAKISTAN 2.2 MANAGEMENT STRUCTURE 25 2.3 DIVISIONS OF NBP 26 Chapter.3 Product Introduction 29 3.1 CASH DEPRTMENT 30 3.2 DEPOSIT DEPARTMENT 32 3.3 ADVANCES DEPARTMENT 33 3.4 CLEARANCE DEPARTMENT 35 3.5 REMITANCES DEPAPRTMENT 36 3.6 HUMAN RESOURCE DEPARTMENT 38 3.7 FOREIGN EXCHANG DEPARTMENT 40 Chapter.4.4 Personal practical work 41 4.1 Credit Department 41 4.2 Recording of daak in daak register 45 4.3 Remittance department 46 Chapter.5 SWOT Analysis 47 5.1 Strength 48 5.2 Weaknesses 49 5.3 Opportunity 50 5.4 Threats 51 Chapter.6 Financial Statement analysis 53 6.1 Financial statements 53 6.2 Vertical Analysis 57 6.3 Horizontal Analysis 60 6.4 Ratio Analysis 67 Chapter.7 Conclusion 73
Chapter.8 Suggestions & Recommendation 75 1. INTRODUCTION
INTRODUCTION TO REPORT
The report is all about National Bank of Pakistan, one of the leading banks of Pakistan banking industry with 1531 nationwide and almost 23 branches operating in other countries including USA, China, France, Hong Kong, Azerbaijan, Bangladesh, andHong Kong. It has maximum coverage with facilities of ATM and online banking throughout Pakistan. National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance 1949.
The primary objective of NBP was to purchase jute from the growers in the former East Pakistan and also to perform the commercial banking functions in the country. It is a part of State Bank of Pakistan and it is its major strength. It is providing different facilities to its customers. Inside the bank, in branch banking it has Clearing and Collection Department, Government Receipts Processing Department, Account Opening Department, Remittance Department, Customer Services Department Cash Department, Deposit Department, Advances and Credit Department.
These are the most common departments exist in almost each branch. It is offering different deposit choices, advances, credits and securities etc for its customers.
The Financial Analysis of the Bank through Ratio Analysis, and the trend analysis through Vertical Analysis, Horizontal Analysis and Cross sectional Analysis with different major banks of Pakistan shows that that the bank is in the growth stage of its life cycle and has a great potential for further growth and a wide room for improvement. The SWOT Analysis of the Bank shows that the bank has a number of strengths which are not only strengths but also a competitive advantage against other competing banks of the sector, its weaknesses are not a dilemma mere attention can resolve them easily, it has lot of opportunities to grow and make a remarkable and considerable place in the domestic and foreign markets, its threats are not a like ghost they effect the performance of the bank to a very little extent.
Suggestions and recommendations drawn on the basis of analysis like financial analysis, Trend Analysis, and SWOT Analysis regarding its improvement can be valuable asset for the bank. Finally there are some concluding remarks about the Bank being a critical analyst both bright and dark areas have been discussed in this report.
INTRODUCTION OF THE BANK
National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organization into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen. In today's competitive business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi/Islamabad/Lahore Stock Exchanges
National Bank of Pakistan is today a progressive, efficient and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Advance
Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.
Social Responsibility
For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature . NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan .It has provided generously to philanthropic causes whenever the need arose.
Organizational Development
A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and developing the human resources. National Bank of Pakistan has built an extensive branch network with over 1250 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing, Tashkent, Chicago and Toronto . It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty , Kazakhstan . The Bank's joint ventures are, United National Bank (UK), FirstInvestment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore). Schemes of the Bank
The bank has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products.
HISTORY
The history of National Bank of Pakistan is part of Pakistan’s struggle for economic independence. National Bank of Pakistan was established on November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian Rupee in 1949. Initially the Bank was established with the objective to extend credit to the agriculture sector.
The normal procedure of establishing a banking company under the Companies Law was set aside and the Bank was established through the promulgation of an Ordinance, due to the crisis situation that had developed with regard to financing of jute trade.
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.
The National Bank of Pakistan came forward to establish its offices in the Cotton growing areas and extended credit facilities liberally in order to restore stability to the market. In 1951, the country was once again faced with a crisis in the cotton trade when prices was crashed and touched the lowest level since independence following the cessation of hostilities in Korea. The bank in collaboration with the cotton board provided the necessary Credit facilities to the trade and the crisis was tided over. The nature of responsibilities of the Bank is different and unique from other banks/financial institutions. 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. The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The bank operates 1249(2008) branches in Pakistan and 22(2008) overseas branches. Under a trust Deed, the bank also provides services as trustee to National Investment Trust (NIT) including safe custody ofsecurities on behalf of NIT. The National Bank of Pakistan has assets worth Rupees 737976.44 million on September 30, 2008.
The National Bank of Pakistan has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme.
The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature.
The Bank is also the largest sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home
Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. 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, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kisan Time Awards – 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been presented a Recognition Award –– 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards.
The precise summary of National Bank of Pakistan regarding its countrywide and overseas operations is as fallows:
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 Bahawalpur’ 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. 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.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. 2007 Launch of NBP Premium Amdani and NBP Premium
Highest standards of Integrity Institutionalizing team work and performance culture Excellence in service Advancement of skills for tomorrow’s challenges Awareness of social and community responsibility Value creation for all stakeholders To enhance profitability and maximization of NBPshare through increasing leverage of existing customer base and diversified range of products.
BOARD OF DIRECTORS Syed Ali Raza
Chairman Board, National Bank of Pakistan
Mr. S. Ali Raza is the Chairman, NBP Board of Directors. Mr. Raza is a graduate of the London School of Economics and M.Sc. in Admn. Science from the London Graduate Business Centre, City University, London. Before joining the National Bank of Pakistan in July 2000 as the Bank’s President, he held a key management position as Managing Director and Regional Head, Pakistan, Middle East and North Africa at the Bank of America (BOA).
Qamar Hussain
President, NBP
Mr. Qamar Hussain is the President of National Bank of Pakistan (NBP), the largest Commercial Bank of the country. He holds an MBA degree in International Business & Finance from McGill University, Montreal, Canada and has undergone extensive trainingn business leadership abroad. Mr. Hussain started his banking career from Bank of America N.T. & S.A., Pakistan in the year 1981. Prior to joining NBP in 2009, he has worked with American Express Bank Limited as Senior Director Global Credit, New York and earlier as Senior Director Country Manager, Bangladesh. He had also been associated with the CHASE MANHATTAN BANK in Pakistan and USA
Mr. Tariq Kirmani
Director
Soon after completing his Masters in Business Administration (MBA) Mr. Kirmani embarked upon a rewarding career, starting with a multi-national Oil Company (Caltex later Chevron Pakistan) in 1969 and worked for seven years in the United States of America, United Arab Emirates and Australia in different senior management positions in Marketing, Operations and Finance. In 1991, Mr. Kirmani became the first Pakistani to be elected as a Company Director of the mentioned multi-national company.
Mrs. Haniya Shahid Naseem Director
Mrs. Haniya Shahid Naseem is an MBA with more than fifteen years experience of working in the education, social, industrial textile and agriculture sectors of Pakistan. She has served for 5 years on the Board of a textile company, having a turnover of more than one Billion Rupees. Presently she is actively involved in the administration of Pakistan Public School Multan. She is a progressive agriculturist and actively participates in the management of her family’s agricultural farms. She is a member of the Multan Chamber of Commerce and Industry, and is also on the guest faculty of IBA, Multan.
Ms. Nazrat Bashir
Director
Ms. Nazrat Bashir belongs to District Management Group of Civil Service of Pakistan. She is Masters in Economics from New York University, New York, USA and Masters in Psychology from Peshawar University, Peshawar. She has extensively traveled abroad and has attended various international Seminars and Courses including Executive Program from Kennedy School, Harvard, Consolidated Supervision of Banks, Dealing with Banking Crises, Commercialization of Micro Finance, Anti Money Laundering, and Instrument of Financial Markets etc. Domestically too she has attended various programs in some of very prestigious institutions of Pakistan. Mr. Ekhlaq Ahmed
Secretary Board of Directors
Mr. Ekhlaq Ahmed, EVP is the Company Secretary of the Bank and also the Secretary of Credit & Operations Committees. He is M.A. (Economics) from Rajshahi University, Bangladesh (former East Pakistan). He is a Diplomaed Associate Institute of Bankers, Pakistan (DAIBP) and secured overall 1st position in order of merit and won Muslim Commercial Bank Prize in the subject of “Foreign Trade & Foreign Exchange”. He is an
Associate of Institute of Corporate Secretaries of Pakistan (ACIS). He is also a “Certified Director” on the panel of Pakistan Institute of Corporate Governance (PICG) since November, 2007. Mr. Ekhlaq Ahmed is the first senior executive of the Bank who has achieved the status of “Certified Director”.
CORPORATE INFORMATION
Board of Directors
Qamar Hussain (President) Nazrat Bashir (Director) Tariq Kirmani (Director) Haniya Shahid Naseem (Director)
Audit Committee
Tariq Kirmani (Chairman) Nazrat Bashir (Member) Haniya Shahid Naseem (Member)
Auditors
Anjum Asim Shahid Rahman
Chartered Accountants
M. Yousuf Adil Saleem & Co.
Legal Advisors
Mandviwala & Zafar
Registered Office
NBP Building I.I. Chundrigar Road, Karachi, Pakistan
Registrar & 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
Website
www.nbp.com.pk
Designation Number of employees President Employees1
SEVP 8
EVP 16 No. of Employees SVP 25 In following VP 40 table, category wise AVP 200 figure of OG-I 350 employees of the National OG-II 505 Bank Ltd. is given: OG-III 899 Cash Officer 365 Junior Officer 520 Office Boy 510 Gun Man 635 Total Staff Strength 4074 (Source: The National Bank Ltd. Annual Report 2011)
Branch Network:
BRANCH MANAGER SHAHBAZ AHMAD CHEEMA (OG-I)
OPERATION MANAGER FAROOQ AHMAD CHEEMA (OG-I)
Credit Manager FAROOQ AHMAD CHEEMA (OG-II)
Accountant M. Farooq (OG-II)
Head Cashier Muhammad QAISAR (OG-II)
Cashier Muhammad QAISAR (OG-II)
B.B.O Operator ZIA AMER (OG-II)
Office Boy Rana Saeed
Security Guard Muhammad Bashir Domestic Network:
Regional Offices 29
Branches 1531
Online Branches 156
Subsidiaries 4
Overseas Network:
Overseas Branches 23
Representative Offices 4
Joint Ventures 1
ATM Network
Total ATM Machines 104
Islamic Network
Islamic Branches 5
BRANCH NETWORK OF NBP Domestic Branches:
NBP has a vast network of 1531 branches within Pakistan
Its subsidiaries are:
NBP Capital Limited
NBP Modaraba Management Company Limited
NBP Exchange Company Limited
Taurus Securities Limited
REGIONAL OFFICES
Karachi (South) Bahawalpur Karachi (West) Dera Ghazi Khan Hyderabad Sahiwal Larkana Fedral Capital-Islamabad Sukkur Rawalpindi Quetta Jhelum Gawadar Gujrat Lahore (Central) Peshawer Lahore (East) Mardan Gujranwala Dera Ismail Khan Sailkot Abbotabad Faisalabad Gilgit Jhang Muzaffarabad (A. K.) Sargoda Mirpur (A.K.) Multan
Overseas Branches: The bank has 23 branches in foreign countries. These are as follows;
United states of America Central Asian States United Kingdom Bangladesh France Peoples Republic of China Germany Africa, Middle East Region Bahrain Asia Pacific Region Japan Republic of Korea
The National Bank
National Bank of Pakistan has following distinguishing features:-
It acts as the agent of the State Bank of Pakistan (SBP). At places where SBP has no Branch, it receives money and makes payments on its behalf.
It provides credit for State Trading. It deals in internal and external bills of exchange and discounts them.
It keeps the deposits of the people and provides lockers and agency services.
It invests in government securities and bonds. It provides short terms loans to industry, import and export trade, agriculture and construction.
It provides credit lines for project financing like LMM and IDA etc.
The Bank to facilitate the people to have their own houses has recently launched a big project under the head of SAIBAN.
NDSL a subsidiary of NBP has been established for catering the needs of capital and money market.
National Bank of Pakistan performs some general Functions on behalf of the Government of Pakistan
Disbursement of salaries to the government servants, private organizations and autonomous bodies.
Payment of pensions to hundreds of thousands of pensioners across the country.
Payment of benevolent funds to the public.
Payment of Zakat funds on behalf of government to the needy and deserving person.
Selling and purchasing of Prize bonds.
Selling of charity tickets on behalf of charity institutions.
Collection of all types of utilities bills.
Collections of Traffic challan fees and tokens.
Loaning to the talented students of the nation (Qarz-e-Hasna).
Collection of fees for passport and National Identity Cards. Loaning for the purchase, construction and renovation of houses for the government employees and businessmen on easy installment and interest rate basis under the name of “SAIBAN”.
National Bank of Pakistan performs the functions of State Bank of Pakistan in those areas where SBP has no Office. VISSION STATEMENT
“To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility”.
MISSION STATEMENT
“To be recognized in the market place by institutionalizing a merit and performance culture, creating a powerful and distinctive brand identity, achieving top-tier financial performance, and adopting and living out its core values”. 2. ORGANIZATIONAL STRUCTURE
ORGANIZATION CHART OF NATIONAL BANK OF PAKISTAN
2.1 DESIGNATIONS FOR HIGHER LEVEL OFFICERS
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
GRADE 22
EXECUTIVE VICE PRESIDENT
GRADE 21
VICE PRESIDENT
GRADE 20 ASSISTANT VICE PRESIDENT
GRADE 19
GRADE I OFFICER
GRADE 18
GRADE II OFFICER
GRADE 17
GRADE III OFFICER
(GRADE 16) 2.2 MANAGEMENT STRUCTURE
The structure of National Bank of Pakistan is shown in the organizational chart. As the chart shows the top governing body of National Bank of Pakistan is the board of directors. The board of directors elects a president who then heads the executive board of directors, which comprises of provincial chiefs and division heads etc.
CHAIRMAN, PRESIDENT AND BOARD OF DIRECTORS
The board of directors is the supreme governing body of National Bank of Pakistan. It comprises of a government representative, Pakistan Banking Council Nominee, Nominee of corporate sector and three directors from National Bank of Pakistan.
S.ALI RAZA (CHAIRMAN)
BOARD OF DIRECTOR:
QAMAR HUSSAIN (PRESIDENT) MR TARIQ (DIRECTOR) MRS HANYA SHAHID (DIRECTOR) MS NAZRAT BASHIR (DIRECTOR)
EXECUTIVE BOARD OF DIRECTORS The Executive Board of Directors comprises of the four provincial chiefs, the three directors from Board of Directors, and the division heads. These people run the organization. They are answerable to the president and the president is answerable to the Board of Directors.
REGISTERED & HEAD OFFICE
Building I.I.Chundrigar
Road,Karachi, Pakistan
2.3 DIVISIONS OF NBP
In order to perform all the functions described in the next chapter, the National Bank of Pakistan has made some divisions, which perform some specific functions. Following are the divisions:
CREDIT DIVISION
The main function of this division is to make the credit policies, and also to do credit ceiling which means the max amount of credit that can be given to a certain client. This division also looks for the agricultural and small loans. It also considers the cases of right off i-e bad debts.
CORPORATE CREDIT DIVISION
The major function of this division is to handle the big loans and industrial financing, I.B.R.D. It also does the evaluation of credit ceiling policy devised by the credit division. INTERNATIONAL DIVISION
This division has to look after the administration of National Bank of Pakistan outside Pakistan. It takes care of all the affairs about the advances given outside, the management of the branches of the bank outside Pakistan, the posting of employees outside Pakistan etc.
RECOVERY AND LITIGATION DIVISION
This division comes into operation when recovery of advances given becomes difficult or impossible. It is the job of this division to decide whether to go court against the client or not.
AUDIT AND INSPECTION DIVISION
The major function of this division is to carry out the inspection of rules and policies. It also inspects the books of accounts, whether they are kept rightly or not.
ADMINISTRATION DIVISION
This division consists of two wings the personnel wing and establishment wing.
The personnel wing concerns with employee welfare and administration. It looks after things like rules relating to the administration of employees, the medical bills etc. There is also a disciplinary cell, which is for punishments if an employee does something wrong. The establishment wing has a main function of controlling the debt stock i-e furniture, transport facility, stationary, sports portfolio, security arrangements, and staff welfare. ENGINEERING AND MAINTENANCE DIVISION
The job of this division is maintenance of buildings, construction of projects, project designing. The head of this division is an engineer who has designation of executive vice president.
FINANCE AND INVESTMENT DIVISION
It looks after the accounts, investment in resources and decides where to allocate the surplus funds.
CUSTOMER SERVICES DIVISION
The main job of this division is to manage the opening and closing of branches, Islamization policy, then there is a complaint cell where the customers make the complaints if they are not treated well. This division also accepts Hajj application. This division is very important as it directly concern the customers who are the ones to make the deposits, which the bank invests.
BUSINESS PROMOTION AND MARKETING DIVISION
It concerns the marketing and selling of the policies and interest rates of National Bank of Pakistan through advertisements on television or in the papers etc.
LAW DIVISION
This division consists of an executives committee and an Evaluation committee. Their job is documents evaluation and they give legal opinion to recovery and litigation division also.
COMPUTER DIVISION
This division does data processing through computers and develops control systems. All these divisions perform their functions through the branches and they are located at the head office in Karachi. 3. SERVICES
SERVICES PROVIDED BY THE NATIONAL BANK
National Bank of Pakistan provides the following main services to its customers:
It acts like a financial intermediary between importers and exporters. It provides services in share of deposits, advances guarantees etc. Full and efficient services of foreign trade. Better computer system through which statement of accounts of a client could be made rapidly. Product of a bank includes all those services which a customer can use effectively in his general and business life. NBP offer a wide range of banking service to public and private sector corporations, individuals and others. However, some of these basic services which at present offered to its customers include: Receipts of customer deposits. Collection of its cheques drawn on other banks. Making payments through cheques drawn on it. Making remittances. Foreign trade services. At present NBP offering the following financial services and investments options to its customers.
DEPARTMENTS Dividing an organization into different parts according to the functions is called departmentation.
CASH DEPRTMENT DEPOSIT DEPARTMENT ADVANCES DEPARTMENT CLEARANCE DEPARTMENT REMITANCES DEPAPRTMENT HUMAN RESOURCE DEPARTMENT FOREIGN EXCHANG DEPARTMENT
Now these will be explained one by one:
3.1 CASH DEPARTMENT
Cash department performs the following functions.
Receipt
The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards.
Payments
It is a banker’s primary contract to repay money received for this customer’s account usually by honoring his cheques.
Cheques and their Payment
The Negotiable Instruments. Act, 1881,
“Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand” Since a Cheque has been declared to be a bill of exchange, it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act, 1881. Therefore, one can say that a Cheque can be defined as an:
“An unconditional order in writing drawn on a specified banker, signed by the drawer, requiring the banker to pay on demand a sum certain in money to, or to the order of, a specified person or to the bearer, and which does not order any act to be done in addition to the payment of money”3. (Law of Banking by Dr. Hart, p.327).
The Requisites of Cheque
There is no prescribed form of words or design of a Cheque, but in order to fulfill the requirements mentioned in Section 6 above the Cheque must have the following.
It should be in writing
The unconditional order
Drawn on specific banker only
Payment on Demand
Sum Certain in money
Payable to a specific person
Signed by the drawer
Kinds of Cheques
Bankers in Pakistan deal with three types of cheques.
Bearer Cheques Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing.
Order Cheques
These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing.
Crossed Cheques
These cheques are not payable in cash at the counters of a banker. It can only be credited to the payee’s account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque.
3.2 DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from customers. Following type of deposits are offered by National Bank.
Current Deposit
In this type of account the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposit or with draw several times in the day if he likes. Usually the bank allows this and service chargers are deducted by the bank.
Saving Bank Deposit
This type of account is for those persons who want to make small savings. This type of account is opened with Rs. 500. In this case deposits can be made only up to a costing amount and with drawls are allowed twice a week. If the depositors wants to withdraw more than Rs. 15000 a seven days notices is required before the withdrawal.
Profit & Loss Saving Account
These types of accounts are one step towards the Islamization of Banking system in the Pakistan. Under such types of accounts the bank allows no interest to the customers. The executive board of the bank declares profit or loss every year. PLS saving account having a running minimum credit balance of Rs. 100 would be eligible for sharing profit/loss of the bank. The rate of profit or loss on PLS saving accounts shall be determined by the bank at the close of each half year, in its sole discretion and the banks decisions shall be final and binding on the PLS account holder.
Fixed Deposit
In this type of account a certain amount is deposited for a certain, period such as six-month, two years or longer. A fix deposit receipts is issued in the same of the depositor. The officer in charge and the bank manager sign the receipt. A notice is given to the depositor requesting the depositor to withdraw his money or to renew this deposit. The interest allowed on fixed varies with the period for which the deposits are made.
Foreign Currency Deposit
Foreign currency account is opened by depositing foreign currency. In NBP, you can open foreign currency account in:
Us Dollar ($)
Pound Sterling (£)
3.3 ADVANCES DEPARTMENT Advances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. The job of this department is to make proposals about the loans. The Credit Management Division of Head Office directly controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all financial institutions, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques.
Any individual or company, who wants loan from NBP, first of all has to undergo the filling of a prescribed form, which provides the following information to the banker.
Name & Address of the Borrower
Existing financial position of a borrower at a particular branch.
Accounts details of other banks (if any).
Security against loan.
Exiting financial position of the company. (Balance Sheet & Income Statement).
Signing a promissory note is also a requirement of lending, through this note borrower promise that he will be responsible to pay the certain amount of money with interest.
GUARANTEES
When an application for advance cannot offer any tangible security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant.
Mortgage A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by; way of loan, and existing or future debt, or the performance of an engagement which may rise to a pecuniary liability. The transfer is called a mortgagor, the transferee a mortgage.
Hypothecation
When property in the shape of goods is charged as security for a loan form the bank the ownership and possession is left with the borrower, the goods are said to be hypothecated. The essence of hypothecation is that neither the property in the goods not the possession of them are possessed by the lender, but the security is granted by means of letter of hypothecation, which usually provides for a banker’s charge on the hypothecation goods.
Pledge
In a pledge the ownership remains with pledge, but the pledge has the exclusive possession of property until the advance in repaid in full. While in case of the default the pledge has the power of sale after giving due notice.
Promissory Note
Sometimes promissory note is also accepted as a security, “A promissory note is an instruments in writing containing an unconditional undertaking signed by the maker, to pay ;on demand or at a fixed or determinable future time a certain sum of money only, to or to the order of certain persons, or to the bearer or the instrument.” A promissory note is incomplete until has been delivered to payee or the bearer. Moreover, the sum promised in a promissory note may be made by two or more makers who may be liable there on jointly and severally.
3.4 Clearance Department
A clearinghouse is an association of commercial banks set up in given locality for the purpose of interchange and settlement of credit claims. The function of clearinghouse is performed by the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated by the SBP. If SBP has no office at a place, then NBP, as a representative of SBP act as a clearinghouse.
After the World War II, a rapid growth in banking institutions has taken place. The use of cheques in making payments has also widely increased. The collection as settlement of mutual obligations in the form of cheques is now a big task for all the commercial bank. When Cheque is drawn on one bank and the holder (payee) deposits the same in his account at the bank of the drawer, the mutual obligation are settled by the internal bank administration and there arises no inter bank debits from the use of cheques. The total assets and total liabilities of the bank remain unchanged.
In-word clearing Books
The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All details of the cheques are recorded in this book.
Out-word Clearing Books
The bank uses outward clearing register for the purpose of recording all the details of the cheques that the bank has delivered to other banks.
3.5 Remittances Department
Remittance means a sum of money sent in payment for something. This department deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. NBP offers the following forms of remittances.
Demand Draft (DD) Telegraphic Transfer (TT) Pay Order (PO) Mail Transfer (MT) Demand Draft
In demand draft customer fills the application form. Application form includes the beneficiary name, account number and a sender’s name. The customer deposits the amount of DD in the branch. After the payment the DD is prepared and given to the customer. NBP officials note the transaction in issuance register on the page of that branch of NBP on which DD is drawn and will prepare the advice to send to that branch. The account of the customer is credited when the DD advice from originating branch comes to the responding branch and the account is debited when DD comes for clearance. DD are of two types.
Open DD: Where direct payment is made.
Close DD: Where payment is made though account.
In case of transfer of money by drafts, the customer has to fill an application form. Then the concerned officer fills the following forms:
Customer’s advice
Customer’s debit form
Register copy
Cover Advice
Foreign Demand Draft
Foreign Demand Draft is just like demand draft. The only difference is that a bank issues FDD to the bank of another country. It requires foreign exchange and it involves seven forms, which are to be filled.
Telegraphic Transfer Telegraphic transfer or cable transfer is the quickest method of making remittances. Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to the specified person. The customer for requesting TT fills an application form. Vouchers are prepared and sent by ordinary mail to keep the record. TT charges are taken from the customer. No excise duty is charged on TT. The TT charges are:
Telegram/ Fax Charges on TT = Actual-minimum Rs.125.
Cable telegram transfer costs more as compared to other title of money. In cable transfer the bank uses a secret system of private code, which is known to the person concerned with this department and branch manager.
Pay Order
Pay order is made for local transfer of money. Pay order is the most convenient, simple and secure way of transfer of money. NBP takes fixed commission of Rs. 25 per pay order from the account holder and Rs. 100 from a non-account holder.
Mail Transfer
When a customer requests the bank to transfer his money from one branch of bank to another branch of the same bank or from one city to another city to the same bank or any other bank. Customer fills the form given by bank. If the customer has an account with that amount as mentioned in the application form then concerned officer will undertake the following procedure to make the mail transfer complete.
Branch Mail transfer form
Receiving Branch Register copy
Issuing branch register Copy
beneficiary advice
advice to customer In case where the customer is not account holder of the bank then the customer will have to deposit the amount which he wants to transfer under Mail. Then the above said procedure will be done.
3.6 Human Resource Department
Human Resource plays a vital role in the success of every service organization. They interact between man and machine. Their attitude can win or loose the customer. The positive attitude could only be created in a conducive environment, which can make the staff dedicated towards the organization and its objectives. In reality the man is more important than machine as it is the human which could get maximum out of machine to keep a happy customer. However, most organizations give little importance to this very important asset.Various aspects related to human resource of National Bank of Pakistan are critically examined in the following text:
Selection & Recruitment
Although the Bank believes in merit but in practice the selection of employees is not done on merit. Most of the employees are low educated. This shows that candidates with some strong family background or political pressure are given preference in recruitment and qualified candidates are sometimes left behind.
Job for Life
Like the employee of public sector organizations in Pakistan, the employees of NBP also enjoy their job for life. Since there is no risk of early retirement or redundancy in rank, they do not perform with their full potentials. This is one redundancy in rank, they do not perform with their full potentials, and this is one of the reasons responsible for the low productivity of the employees of the Bank. Performance Appraisal
The performance of employees of the Bank are appraised though their annual confidential reports at the end of each year. This has become an outdated method of performance appraisal and no longer used due to the following reasons:
The performance of employees is evaluated after quite a long time.
Element of subjectivity is involved in this method.
Employee’s participation is not ensured in the process of evaluation.
Objectives of employee’s are not quantified.
Discipline & Authority
Maintaining discipline and implementation of authority (tables) in letter and spirit is the key to success of any organization. In NBP, The authority tables are not strictly maintained. Line managers are not fully equipped with the authority with no vertical or horizontal interference.
Accounts Department
Every Transaction, which takes place, is recorded in the computer. Transaction takes place through different vouchers which are finally posted to computer. As I already wrote that total branch was computerized so all transaction in different dept. would be made on computer. Each dept prepare a summary of daily transaction 'at is forwarded to Account dept. Since all voucher from differ-it dept. also forwarded to current dept. So this dept. will tally it such transaction with current dept after maintaining the ledger each dept. The dept take care about bookkeeping, maintains ledger and current accounts of different dept.
Following are the different functions performed by this department. Preparation of monthly, quarterly, semiannually and yearly balance sheet of the branch. To maintain all accounts of different department. Calculation of profit of different investment schemes. Calculation of mark-up of different advances. Preparation of different type of reports for state bank of Pakistan. Preparation of daily position report of cash and every account. The most important function is the checking and tallying daily summaries of different departments with ledger's balance.
3.7 Foreign Exchange Department
This dept. mainly deals with the foreign business. The main functions of this deptt are:
L/C dealing. Foreign currency accounts dealing. Foreign Remittance dealing.
L/C dealing
NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
Foreign currency account dealing
This deptt deals with the foreign currency accounts which mainly include dollar account, euro account etc. SKILLS ACQUIRED DUIRING INTERNSHIP
DUTIES:
I have done my ‘INTERNSHIP’ at ‘NATIONAL BANK OF PAKIST mansour wali BRANCH. here the branch manager MUHAMMAD SAHBAZ and his staff was very cooperative with me.
The activities that I had performed at the branch are
Issuance of loan
Recording of daak
Area of internship
My area of internship is working in credit deptt.
Credit Department Credit department has two sub sections namely;
Retail section
Advance section
Retail Section
I attached with Mr. ZIA AMIR AND MUHAMMAD QAISAR His designation is operations manager. He is the OG II officer in the credit department. Whole day I spent with him and deal to customers to calculate the mark up against their loans
Advance Section
In charge of Advance Section told me about BCIL (business credit information limited).
This institute is provide the worthiness about the customer and told all information about customer/creditors to the bank.
ECIB (Electronic Credit Information Bureau) Reports are also generated by this section.
Advance Section products are as follows;
Cash Finance
Running Finance
Demand Finance
Agriculture Finance
NBP advance salary Bank required security for this kind of loans.
Security has 2 types;
Primary Security (STOCK)
Security (MORTGAGE, LAND& BUILDING)
Initial requirements of lending
Any individual or company, who wants loan from NBP, first of all has to undergo the filling of a prescribed form, which provides the following information to the banker.
Name & Address of the Borrower
Existing financial position of a borrower at a particular branch.
Accounts details of other banks (if any).
Security against loan.
Exiting financial position of the company. (Balance Sheet & Income Statement).
Signing a promissory note is also a requirement of lending, through this note borrower promise that he will be responsible to pay the certain amount of money with interest.
1_Cash Finance
It is issued against property documents as security as pledge.
Mortgage
In which customer can use his property but charge of property with bank.
Pledge
In which both use of property and charge are with the bank like as issuance of loan again is st gold. 2_ Running Finance
NBP offers TDR (term deposit receipt), Cash margin, DSC (defense saving certificate). And bank interest charges annually. Running finance is issued against document as pledge.
3_Demand Finance
In demand finance NBP offer more than 3 years loan
Procedure of issuance of demand finance
First of all borrower comes to national bank along with application that fulfill the following condition i.e.
Name & Address of the Borrower
Existing financial position of a borrower at a particular branch.
Accounts details of other banks (if any).
Security against loan.
Exiting financial position of the company. (Balance Sheet & Income Statement)
Signing a promissory note is also a requirement of lending, through this note borrower promise that he will be responsible to pay the certain amount of money with interest.
Secondly manager credit visits the factory or company of the lender in case of demand finance loan.
Here credit manager analysis the factory, sales purchase, stocks, how much its worth/goodwill it has in the market. After that if credit manager is satisfied with the provided information then authority letter is written for opening of account of lender for transfer of money.
4_ Agriculture Finance
They are purposive, long term, seasonal. These loans are issued for production and development of land. agriculture finance is given against gold as security but dairy form loan is provided against documents as security as pledge.
Procedure of issuance of agriculture loan
Firstly, application is received from the interested parties i.e. from farmer.
Secondly agriculture officer visits the area land of farmer for which he is interested in borrowing and ask the borrower for security as mortgage or pledge.
Thirdly if the credit officer see that borrower fulfills the required condition then his account is opened and amount is transferred.
5_NBP ADVANCE SALARY ACCOUNT
Advance salary is a facility of loan that is provided to government employee in shape of 20 salaries in sum like as railway, wapda etc. How to issue the advance salary loan
First of all application is received from lender along with following documents.
Documents required for it are;
Form
Request form auto rollover (annexure A).provided by bank.
Attested copy of NIC of applicant.
3 salary slips of applicant.
3 undated cheques of applicant relevant account.
2 stamp papers
.6 photographs of applicant.
6 id card copies of applicant.
6 id card copies of 2 references.
3 salary slips.6 months bank statement.
Utility bills.
Secondly an undertaken is signed from employer that salary of the employee will come in the respective branch/place.
Thirdly, an affidavit is signed from employee that he will pay the borrowed amount under the mentioned time period. Then employee in this stage declares that how much unsecured loan he has taken from NBP or other financial institution.
After that employee mention the purpose of loan’
Then he signs the promissory note.
After that letter of hypothecation of stock/assets is written to employee.
Then agreement of financing is signed along with mentioned fixed mark up rate.
After completion of the above formalities and some other a letter is written to debit the account of the customer hence the amount is transferred.
Recording of daak in daak register
I learn how to enter the daily letters/daak received into daak register
These letters contains two types
Monetary (payments to other financial institutions or external parties)
Non monetary (intimation to staff of bank relating to the different affairs of bank)
Remittance department
E-remittances are the foreign country workers send money to their home country.
National bank uses 3 kinds of services which are as follows;
Western Union
Xpress money
Samba Payments
Western Union Western Union has 10 digit numbers. The people who are come for collecting money must have CNIC copy as well as Original.
Xpress Money
Xpress Money has 16 digit numbers. The people who are come for collecting money must have CNIC copy as well as Original.
Samba Payments
Samba Payments has 6, 8, 12, 14 digit numbers. The people who are come for collecting money must have CNIC copy as well as Original.
Reasons for refusal of E-Remittances payments by the banker
If original customer is come but no have original CNIC.
If CNIC has expired
If spelling of customer name is wrong.
If CNIC has expired and customer has no Driving license or Passport.
If their payment is not send to the bank.
If their payment is send to another bank.
SWOT ANALYSIS
STRENGTH WEAKNESS
OPPORTUNITY THREATS
SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.
STRENGTH
Largest financial institution
NBP one of the largest financial institutions of Pakistan with ten million of Customer base NBP holds 28.7% share of time and demand deposits in the country .Local currency deposits comprise 73% of bank's total deposits while foreign currency deposits account for the rest.
Right arm of govt.
NBP is working as right arm government of Pakistan as it is responsible for all claims of government for recovery as well as payment. All depositor of NBP are in relief that their money security is guaranteed by government of Pakistan.
Agent of central bank
It acts as an agent of the Central Bank wherever the State Bank does not have its own branch.
National and oldest
NBP is one of the oldest bank of Pakistan and first nationalized bank Hence its customer base is strength from this plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank.
Employee benefits
The employers at NBP are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees
Broad network of foreign branches
The bank has another competency i.e. it has broad-basses network of branches throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied.
Different payments
National Bank of Pakistan is only one bank which has the facility of Western union. In this particular scheme money is transfer in Pakistan from abroad. This is the fastest way to money transfer. You can receive the money from bank to see the name and password of particular client
Advance salary
Advance salary loan is another plus point of NBP to attract the customers and generate income.
Weakness
Lack of implementation of rules
Because NBP is a govt. owned organization so there is a lack of implementation of rules and regulations. Lowest Internal Control and Compliance System, SBP rated “Marginal” which is alarming for the Bank Unsatisfactory corporate culture of the Bank.
Political pressure
The strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, whichh leads to uneven and adjusted feeling in the bank employees.
Nepotism and favourtism
The promotions and bonuses etc in the bank are often powered by senior’s favoritism or depend upon their wills and decision
Public respect
Public respect is not very effective in NBP. Employees are not taking care of the customers, especially in pension and bills department
Staff shortage
There is also weak point for NBP that staff is very short and more staff is required to meet the needs of the branch work. They help from internees. Lack of education
Staff of NBP is not well educated and they do not know how to deal with customers.
Wrong recruitment
Due to wrong recruitment policy staff of NBP is not proficient in their work. Technical education and training of staff is insufficient The workload in NBP is not evenly distributed and the workload tends to be more on some employees while others abscond away from their responsibilities, which server as a demotivation factor for employees performing above average work.
Unfair promotion
In NBP there is no smooth and continuous promotion system. Unfair means are used in order to get the promotion especially the promotion of the managers. In NBP, employees are recruited on the basis of favoritism or through other tools of corruption. In NBP the individual difference have strong impact on the organization’s performance due to the wrong criteria of selection of the employee. So with the passage of time individual differences are increasing which are undermining the good will of the organization
Opportunities
Investing in the Foreign Capital Market NBP has sufficient funds available to be invested so NBP should go into the foreign capital markets in order to diversify its investment portfolio and Ancash the benefits of diversification NBP can enjoy handsome return its funding base by investing in capital markets in the foreign countries.
Increase in economic activities
The economic activities are increase nowadays, so banks are contributes more in economic activities. Banks are played role in trade and commerce. So the business of commercial banks is increase
Growing market
Nowadays banking system is growing quickly so NBP have opportunities to improve the standard and get the more share in the market
New Branches
NBP by establishing new branches in foreign countries can expand its business and can enjoy with the profit. Amongst highest bank is Asia, NBP further expand its services proudest and earn more profit. The bank is reshaping its portfolios by investing into higher area of growth developing core competing as a result to get maximum return.
Issuance of Bonds & Advisory Services
To enjoy with large amount, NBP can introduce a comprehensive range of bonds. It can establish advisory services in order to facilitate the customers in investing in the securities. 11.1.4 Threats
Following are the major threats which national bank of Pakistan is facing;
Emergence of new competitors
Major threats NBP facing is from its competitor especially from denationalized commercial bank. In which MCB is on the top of the list, The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 15 cities with over 100 ATM locations.
Modern type of banking
Modern and computerized banking is required to fulfill the customer’s need. So maximum branches of NBP are worked in old traditional ways.
Customers complaints
There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored.
New competitors
The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition.
CONCLUSION PROBLEMS & RECOMMENDATIONS CONCLUSION:
During my internship at National Bank of Pakistan I have learned very much. It was a greater experience for me. All the staff was very cooperative with me. They tried to teach me as much as possible.
During my internship I have learned that an employee must be honest, clever and deal customers with patience. He should always treat his customers with good behavior keeping in view the bank’s employee slogan;
“Customer is Always Right.
PROBLEMS & RECOMMENDATIONS
It is the age of competition and every enterprise is coping with a huge amount of competition. Due to this increased race of competition every enterprise becomes a prey of tension and tension creates problem. NBP is also facing some problems. Here I am discussing some of these problems with proper recommendations:
The present era is of quick disposals and decisions. The credit portfolio is the major income of the bank, the foreign and private banks in Pakistan have entrusted powers to the branch managers to decide the credit the proposals and for opening of LCs. While in NBP the branch mangers do not enjoy such powers and the decision is to taken at controlling office (Regional office and Head office). The branch managers have to submit all such proposals thoroughly and then take the decision. This lengthy procedure takes much time which is not acceptable to good client. Hence NBP losses the credit business of good client so the power of making the decision should be vested to the managers.
There is huge number of people for depositing utility bills and govt. Dues at the branches, as a result of which the work of regular customer of the bank is delayed. To over come the problem, a few banking booths at various places should be established which deals with Govt. taxes and bills. The staff should be provided with regular training, in the shape of course and seminars to upgrade their knowledge. This will provide the know how of modern banking techniques.
The managers of the branches should be properly selected and only such officers should be appointed as managers, who are professionally competent and are good leaders.
REFERENCES:
http://www.sbp.gov.pk
www.nbp.com.pk
http://www.scribd.com/doc/13314549/Internship-Report-of-NBP
http://www.scribd.com/doc/19161491/NBP-Internship-Report
http://www.nbp.com.pk/aboutus/index.aspx
http://www.docstoc.com/docs/1007562/national-bank-of-pakistan-a-hollow-dream/
http://www.nbp.com.pk/aboutus/dreport2.aspx