National Bank of Pakistan

Maryam Naeem
MC080202354
MBA (HRM)
Session-Feb 2008-Feb 2010
Submission Date: March 22, 2010

Virtual University of Pakistan

Letter of Undertaking

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 Internship Certificate:

Dedication

I dedicate this effort to my dear Grand Maa (Late) whose prayers made me able to reach
where I am today.

Thanks Amma!

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iv
Acknowledgement

“IN THE NAME OF ALLAH, THE MOST GRACIOUS AND MERCIFUL, THE
BENEFICENT”

first of all I would like to bend over my head in front of ALMIGHTY ALLAH. It was
HE who direct me in every stage of my life, and who bestow me with capability to
accomplish the best and helped me to conquer every attempt and difficulty I faced during
my journey of getting professional education at VU.
At this important moment of my life when I completed my last project, I am feeling a
sense of relief and sadness at the same time, relief for having completed my MBA
program and sadness for leaving an institution, which has given me so much. I am great
full of all my instructors of Virtual University who have taught me very well.
My report will remain incomplete if I do not mention the people who helped me in
completing this work but honestly speaking there is an unending list of persons who
helped me in completion of my professional education and I think it would be a great
injustice on my part if I not thank full to them for provided me required information
moral support and cooperation.
I extremely thank full to all those people who helped me to complete my report as it is
compulsory part of the Master in Business Administration because perhaps I would not
be able to write such a report without their help and cooperation.
Especially I am very thankful to the Head of Human Resource department of NBP Mr.
Ghulam Abbas who organized my internship program and he organized it in such a way
that sufficient time was given to each department according to its importance. Besides I
appreciate the staff of Civil Line branch of NBP, which provided me with all the
information I needed.
Finally, I am very thankful to my family and my sweet friends for their prayers, love
and encouragement and their faith in my abilities. The completion of my work is the
result of their co-operation and moral support. Without their co-operation and support, a
project like this is difficult at best
Maryam Naeem

Executive Summary:

This study contains the study of Civil Line main Branch of National Bank of Pakistan
regarding Human Resource Management (HRM).

This is the age of specialization; every person must be capable in his/her particular field.
Some practical experience is necessary to enter the field because only education given in
the universities is not enough to compete with the world wide changing situation. The
field work is difficult and complicated. This is a good reason why the students of M.B.A
are being given a fair chance to get the practical area in which students have to enter after
completing education.

Internship is a vital part of MBA program. This report is a result of eight week
performance in the form of internship at National Bank of Pakistan, civil line, Main
Branch; Gujranwala. Experience was full of knowledge regarding various facets of
banking sector. This report consists of practical experience, which I achieved during
internship program.

At the commencement of internship at NBP, I was aware of what I am going to learn and
observe. People usually use to say that practical works is quite different from books or
what has been educated in colleges and universities. In real life, one has to get in touch
with public, and how to deal with them, it’s not taught in colleges and not in books even.
It’s what you get through practical work when you enter in market.

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All the information in this report is based upon my observation, interviews and practical
involvement in different tasks during my internship at NBP

This report is being divided into various sections:

First is introductory portion which relates to introduction of the Banking sector, the
strong banking sector is the back bone of the economy of any country. One aspect of this
powerful force is government policies and foreign investments. The banks provide
lending, borrowing, safety, availability and transferability of the resources to its
customers in a better way. Then describe the brief history of the NBP that it was
established on November 9, 1949 as a semi public commercial bank. And now
Alhamdolillah, NBP has established more than 1537 branches in all over the country. In
this portion it is also describe that it is a public limited company listed in Karachi Stock
Exchange (KSE), Islamabad Stock Exchange (ISE), and Lahore Stock Exchange (LSE).
Its business volume and its products that it offers different types of products such as NBP
Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.

In the next portion of Organizational Structure, Organizational Hierarchy chart, how

many employees work in the organization, the location of the main offices of the
organization such as the head office of the NBP at Karachi and major branches are in
almost all big cities of the country. Introduction of all departments of the organization is
described.

In next step, I portrayed the Plan of my internship program that was organized by the HR
Manager of the Civil Line main branch Gujranwala Mr. Ghulam Abbas, and then
introduce the branch where I did my internship. And Names of the departments in which
I got training those are HR Department, Account Opening, Clearing, and Government
department. The duration of my training that was eight weeks.

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At end, report shows training program in detail i.e. detailed description of the
operations/activities of the department(s) I worked in and also the detailed description of
the tasks assigned to me and how I was performed them.

Structure and functions of the HR Department is the most important section of the report
because it is my specialization area. In the Structure of HR Department, department
hierarchy and number of employees working under HR department is described. And in
the head of Functions of HR Department; Human resource planning and forecasting,
HRP process, Forecasting HR requirements. Employee compensation & benefits,
Organizational career management, Employee job changes, Transfer,, Promotion,
Demotion, Separations, Layoff, Termination, Resignation, Retirement, g. Labor
management relations is described.. Employee recruitment & selection, Employment
selection process, Training & development, Employee development, and performance
management, and how performance reports are written. In short, overall overview of HR
Department is given.

In the next portion critical analysis is written by keeping in view the special departments
and especially Human Resource Department which describes the present position of the
bank.

In the last, the SWOT analysis, final Recommendations & Suggestions are given to
overcome faults & troubles that are being faced by National Bank of Pakistan.
The analysis is prepared by Maryam Naeem.

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Table of Contents:
Dedication...........................................................................................................................iii
Acknowledgement...............................................................................................................1
Executive Summary:............................................................................................................2
Brief introduction of the organization’s business sector .....................................................8
Overview of organization..................................................................................................10
Brief history...................................................................................................................10
Vision.........................................................................................................................12
Mission:......................................................................................................................12
Nature of the organization.............................................................................................12
Business volume ...........................................................................................................12
NBP Product lines:.........................................................................................................12
Services Offered By NBP..............................................................................................15
Competitors:...................................................................................................................18
Organizational Structure ...................................................................................................18
Organizational Hierarchy chart:.....................................................................................18
Number of employees....................................................................................................20
Main offices...................................................................................................................20
NBP REGIONAL OFFICES;........................................................................................22
NBP OVERSEAS BRANCHES....................................................................................23
Introduction of all departments..........................................................................................24
Deposit Department.......................................................................................................25
Account Opening Department:......................................................................................25
Bills Remittance Department.........................................................................................26
Cash Department............................................................................................................26
Clearing Department......................................................................................................27
Credit Department;.........................................................................................................28
Government Department;...............................................................................................28
HR Department;.............................................................................................................29
Comments on Organizational structure ............................................................................29
Plan of your internship program:.......................................................................................30
A brief introduction of the branch where you did your internship................................30
Names of the departments in which you got training and the duration of your training
........................................................................................................................................31
Training program ..............................................................................................................31
Huaman Resource Depatment........................................................................................32
(HR Development & Personal Section).........................................................................32
ACCOUNT OPENING DEPARTMENT..........................................................................37
ACCOUNT OPENING AT NBP;.................................................................................37
RESPONSIBILITIES OF ACCOUNT OPENING DEPARTMENT;..........................37

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 ACCOUNT OPENING;.................................................................................................38
DOCUMENTATION:...................................................................................................38
INDIVIDUAL ACCOUNT;..........................................................................................38
JOINT ACCOUNT;.......................................................................................................39
SOLE PROPRIETOR ACCOUNT;...............................................................................39
PARTNERSHIP ACCOUNT;.......................................................................................40
COMPANY ACCOUNTS;............................................................................................40
MINOR ACCOUNT;.....................................................................................................41
TYPES OF ACCOUNTS;.................................................................................................42
CURRENT ACCOUNT;...............................................................................................42
PLS SAVINGS ACCOUNT;.........................................................................................42
PROCEDURE OF ACCOUNT OPENING;......................................................................43
A. ACCOUNT OPENING FORM;...............................................................................43
CONTENTS OF ACCOUNT OPENING FORM;........................................................43
ACCEPTANCE AND VERIFICATION OF DOCUMENTS:.....................................46
CLOSING OF ACCOUNT;...........................................................................................49
UPDATING OF ACCOUNT.........................................................................................50
GOVERNMENT DEPARTMENT ...............................................................................50
GOVERNMENT RECEIPTS; ......................................................................................50
GOVERNMENT PAYMENTS;....................................................................................51
DOCUMENTS REQUIRED FOR THE PENSION PAYMENTS:..............................51
DOCUMENTATION;...............................................................................................51
SUBMISSION OF DOCUMENTS;..........................................................................52
TO TREASURY BRANCH:.........................................................................................52
TO STATE BANK:.......................................................................................................53
STANDERS:..................................................................................................................53
BRANCH MANAGER DUTY REGARDING PENSION;..........................................53
RESONSIBLITY OF THE GOVERNMENT OFFICERS; .........................................54
DUTIES OF OG-I OFFICER IN GOVERNMENT DEPARTMENT;.........................54
DUTIES OF OG-II OFFICER IN GOVERNMENT DEPARTMENT;........................55
DUTIES OF MESSENGER IN GOVERNMENT DEPARTMENT;...........................55
CLEARING DEPARTMENT.......................................................................................56
CLEARING ..............................................................................................................57
LOCAL CLEARING (NIFT); ..................................................................................58
IN CASE OF INSTRUMENT OF NBP........................................................................59
BANK CHARGES FOR OTHER BANKS INSTRUMENT........................................59
ACCEPT CROSS CHEQUE OR REMITTANCE FROM OUR LOCAL BRANCH; 59
PROCEDURE OF CLEARING....................................................................................61
NEXT DAY PROCESS.................................................................................................62
INWARD CLEARANCE .............................................................................................62
FOLLOWING REQUIREMENT FULFILL.................................................................62
PROCESS OF CHEQUE RETURN (S.C)................................................................63
CLEARING SECTION TABLES USED TO KEEP RECORD...................................64
ORDINARY OUTWARD.............................................................................................65
INTERCITY CLEARING INWARD............................................................................65
INTERCITY CLEARING OUTWARD........................................................................65

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 SAME DAY CLEARING..............................................................................................66
INPUT TABLE..............................................................................................................66
S.C FANFOLDS............................................................................................................66
RESPONDING ENTRIES.............................................................................................66
SUMMARY.......................................................................................................................67
Detailed description of the tasks assigned.........................................................................67
Structure of the HR Department .......................................................................................69
Department hierarchy.........................................................................................................69
Number of employees working under HR department......................................................69
Any sub-department if exists under HR department..........................................................70
Functions of HR Department.............................................................................................71
...........................................................................................................................................71
HRP process...................................................................................................................71
Employee development .................................................................................................76
Procedure of Termination:.................................................................................................87
Resignation .......................................................................................................................88
Retirement .........................................................................................................................89
Labor management relations .............................................................................................90
Critical analysis:.................................................................................................................90
SWOT analysis:.................................................................................................................91
Conclusion:........................................................................................................................94
Recommendations:.............................................................................................................95
Reference & Sources used.................................................................................................97
Annexes..............................................................................................................................97

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Brief introduction of the organization’s business sector

A bank is a financial institution and is licensed by Government. To provide the financial

services to its customers is the primary activity of any bank. Bank enriches its investors.
Financial activities like investment funds and taking part in financial markets is done by
banking sector.

Financial institutions, like in Germany, banks have possessed large stakes in industrial
businesses but in some other countries like US banks are not allowed for possession of
non financial companies. Banks are the link of a cross share holding entity called
“ZAIBATSU”.

Government regulations level of banking sector varies broadly from country to country,
like ICELAND who is having comparatively light regulations of banking business.
Whereas countries like CHINA who have large variety of rules and regulations but have
no systematic process that can be followed typical of a communist system.

Different definitions give different understanding of different concepts of banking. These

are:

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Samuelson Says:
“Commercial banks provide certain services for customers and in return receive
payments from them.”

Holder Describes:
“The modern banker is primarily a dealer in credit.”

According to Crowther:
“Bank is a dealer of debt, his own and of other people.”

Gilbert Points of view:

“A bank is a dealer in capital or dealer in money. He is an intermediary party between
the borrowers and lenders.”

The banks services were very poorly exaggerated At the time of independence in 1947
and by June 30, 1948, the number of offices of scheduled banks came down to only 81 in
the territories comprising Pakistan; but there were following 14 scheduled Pakistani
commercial banks with 3323 offices all over the Pakistan and 74 offices in foreign
countries by December 31, 1973.

 National Bank of Pakistan

 United Bank Limited.
 Punjab Provincial Cooperative bank limited.
 Habib bank (Overseas) Limited
 Muslim Commercial Bank Limited.
 Bank of Bahawalpur Limited.
 Standard bank Limited.

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  Australasia bank limited.
 Commerce bank limited.
 Premier bank limited
 Sarhad Bank limited
 Pak bank limited.
 Lahore Commercial bank limited.

Commercial banks have duly played a vital role as a fuel of people's saving to constitute
the most important source of financing in country economy. The truth shows that
commercial banking has completed marvelous progress and achieved a phenomenal
growth since independence.. However it was felt that these bank failed to ensure that the
resources so mobilized by them flow in those sectors of economy where they would
produce the goods and services needed badly by a very large number of people in
Pakistan.

Overview of organization
Brief history
“One way to keep momentum going is to have constantly greater goals”

At the freedom of Pakistan the banks services were badly affected by the political
conditions of the country and banks were not working according to the mark, in order to
cope with the crisis conditions which were developed after trade deadlock with India and
devaluation of Indian rupee National Bank of Pakistan was established on November 9,
1949 as a semi public commercial bank under the National Bank of Pakistan. The main
purpose of the National Bank of Pakistan at its initial stage is to extend credit to the
agriculture sector.
At that time the crises were on their peak so the main purpose of National Bank
of Pakistan was to face the problems that had arisen with regard to financing of jute trade.
National Bank started its functions on November 20, 1949 with its very important eight
jute centers in the East Pakistan. Mr.Ghulam Farooq was announced the first chairman of
Jute Board and Mumtaz Hassan was announced the first chairman of National Bank of

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Pakistan. National Bank of Pakistan was remained totally under the Jute Operations till
1950. The first M.D of the National Bank of Pakistan was Mr. M.A. Muhajir. In 1952
Governor of State Bank of Pakistan decided to replace Imperial Bank of India by
National Bank of Pakistan.
By becoming Mr. Mumtaz Hassan the MD of NBP, the number of branches,
deposits and the number of employees had increased significantly as compare earlier, it
was all happen by the great struggle of Mr. Mumtaz Hussan. In Dec. 1966 its 600th
branch was opened raising the deposits to 2.31 billion, and staff to 14, 963. Up to 1965,
the shareholders had received 225% of their original investment. Now it has more than
21549 employees 1537 branches and Rs.208283 million deposits.
National Bank Pakistan has a matchless position in the financial sector of
Pakistan. It is the agent of the Stats Bank of Pakistan where it has no its own Branch. The
National Bank of Pakistan is the largest Commercial Bank of Pakistan and transacts all
types of Banking Business. The Head Office of the Bank is at Karachi.
National Bank of Pakistan is the first bank in the country to introduce and
implement supervised Ruler Credit Programmed help small farmer to obtain loans at his
doorsteps on easy terms and conditions. It has also played a pioneering role in
introduction of profit and loss sharing System (PLS) as a major towards Islamization of
economy.
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.
NBP is 100% owned by the Government of Pakistan (GOP).

Vision
“To be recognized as a leader and a brand synonymous with trust, highest standards of
service quality, international best practices and social responsibility.”

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 Mission:
NBP will aspire to the values that make NBP truly the Nation’s Bank by:

 Creating a distinctive brand identity by giving the highest principles of services

 Institutionalizing a merit and performance culture
 Adopting the best international management practices
 Discharging our responsibility as a good corporate citizen of Pakistan and in
countries where we operate.
 Maximizing stake holder’s value

Nature of the organization

National Bank of Pakistan is a banking organization, a public limited company listed in
Karachi Stock Exchange (KSE), Islamabad Stock Exchange (ISE), and Lahore Stock
Exchange (LSE).

Business volume
Bank paid up capital Rs8969 millions
Net assets Rs102459218
Share capital Rs8154319
Reserves Rs15772124
Earning per share is Rs23.34

NBP Product lines:

ATM / Debit Cards Cash Management / Financial
Protection Shield Insurance Institutions
Remittance Facilities Treasury Services to
Advance Salary (Personal loan) Government
Cash and Gold (loan Secured Islamic Banking Products
against Gold) Finance / Credit Facilities
SME / Commercial Financing Loan Syndication
Trade Finance Facilities Structured Finance

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 Current, Savings, Term, Foreign Project Finance
Currency Accounts Financial Advisory Service
Kissan Dost Taquat Investments / Participations
(Agriculture) Proprietary Equity Trading
NBP Saibaan (Housing NBP Cash n Gold
Finance) NBP Kisan Taqat
NBP Karobar (Micro Finance) NBP Kisan Dost
Commodity Finance NBP Pak Remit
Investor Advantage (Margin NBP Protection Shield
Financing) NBP Saiban
NBP Premium Aamdani NBP Advance Salary
NBP Premium Saver NBP Cash Card
NBP Karobar NBP Investor Advantage

Detail of some of products is as follows:

∆ PREMIUM SAVER (your saving reward)PLS Saving Account:

In profit and loss saving account you can earn up to 7.25% per year and for it minimum
saving balance should be more than Rs. 20,000/- and a maximum balance of Rs.
300,000/-. One can withdraw twice in a month and there is no limit on number of deposit
transactions. Profit calculated on monthly and paid on half yearly basis.

∆ NBP SAIBAAN(Home Financing)

One can purchase one’s home, construct one’s home, home renovation and purchase of
land and built it.

∆ NBP ADVANCE SALARY(Personal Loan)

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The product is for permanent employees of Government, partly Government and
independent bodies getting salaries through NBP accounts. Easy payment of 1 to 60
months at one’s choice, no lowest income sanctuary and insurance charges required.

∆ NBP CASH AND GOLD(Ready Cash against Gold)

Meet need for ready cash against idle gold jewelry with no minimum limits, facility of
Rs. 10,000/-against each 10 g of net weight of Gold Ornaments maximum limit of each,
repayment after 1 year, no punishment for repayment.

∆ AGRICULTURE FARMING PROGRAM

NBP has made Agriculture easy by introducing NBP Kisan Taqat & NBP Kisan Dost.
Farmers can get up to Rs. 500,000/- for landless farmers against personal guarantee and
they can also get suitable technological direction the bank. Loan facility on rotating basis
for three years (renewable on yearly basis without documentation and approval)

∆ NBP CASH CARD

This facility provides by the NBP very efficiently, you can withdraw cash up to Rs.
20,000/- per day. Automatically account balance inquiry, mini statement and NBP also
provides PIN Change facility.

∆ NBP INVESTOR ADVANTAGE(Financing Facility for Stock Investors)

NBP provides many advantages to the investors because there are no security
requirements, except customer’s equity. Customer’s justice is freely presented for
investment. Equity is tolerable in only cash or approved shares.

∆ NBP KAROBAR MERA APNA KAROBAR

Now one can get up to Rs. 200,000/- and for start one’s own Business, and the age for
gaining the loan is 18-45 years. Mark up 1 year KIBOR + 2.00p.a. The customer will pay
markup at 6% p.a.

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 ∆ PREMIUM AAMDANI (Unprecedented safety, unprecedented
return)Monthly income scheme
By using Premium Aamdani earn up to 11% per year and for this return minimum
amount must be Rs. 20,000/- and maximum deposit of Rs. 5,000,000/- for 5 years. Enjoy
the running finance facility up to 90%.

∆ NBP'S INTERNET BASED HOME REMITTANCES SERVICE

Pak remit is an internet based Home Remittance Service. This service is accessible to
U.S. inhabitants for distribution money to their relatives and associates in Pakistan. This
service is available for 24 hours a day, 7 days a week. Fees and exchange rate have been
set at spirited levels and the remitters have the ability to track delivery of funds as well.

∆ NBP PROTECTION SHIELD

NBP provides protection shield for this no documentation required, no medical required,
Premium Auto Debit facility & choice of deactivation, Coverage includes death due to:
Natural Calamities e.g. Earthquake, Flood, Cyclone etc

Services Offered By NBP

Corporate Finance Utility Bills

Working Capital and Short Term Loans Provincial Collections
Medium Term Loans and Project Sale and Purchase of Prize Bonds
Financing Foreign Remittances
Loan Structuring and Syndication National Income Daily Account (NIDA)
Cash Management Service Commercial Finance
International Banking Agriculture Financing (Medium to Long
Disbursement of Pensions (EOBI) Term)
Musharika Letters of Credit
Ijara Traveler’s Cheque
Mudarba Pay Orders
PLS Term Deposits Mail Transfers

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 PLS Saving Accounts Government Treasury Functions
Current Accounts Government Receipt and Payments
Demand Drafts Farm Credit

Detail of some services is as follows:

 DEMAND DRAFTS

It is a simple, safe, rapid and reliable way to shift money. For the transformation of the
money an individual has an account in the bank or not can purchase it from any branch of
NBP at very affordable rates.

 MAIL TRANSFERS

One can move one’s money safely and quickly using NBP Mail Transfer service. NBP
also offer the most competitive rates in the market.

 PAY ORDER

Another reason to move money from one place to another by using NBP’s services is Pay
Order. The charges of this service are very reasonable. Pay orders of NBP are a safe and
straightforward way to shift money from one place to another.

 LETTER OF CREDIT

NBP is faithful to present its industrial clients the widest variety of options in the part of
money move. If someone is interested then Letter of Credit service by NBP is a service
for business enterprise and it is fulfill the necessities of commercial enterprises. With
rational rates, safety, and easiness of transaction, NBP Letters of Credit are the best way
to do business transactions.

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  MAIL TRANSFER

It is faster mode of transfer money than demand draft. Mail transfer is the inter city
transfer of money between two branches of a bank, through mail/currier.

 PAYMENT ORDERS

If the customer or account holder wants to make payment within the city, then this is
done through P.O. It can’t be cancelled without the consent of both parties.

 PLS TERM DEPOSITS

In case of fixed deposit account deposit is made for a fixed period and money deposited
can be with drawn before the end of period fixed or before giving an advance notice to
the Bank. Fixed deposit carries a higher rate of interest than the other type of bank
account and the rate of interest rises with the length of the period and the amount of
deposit.

 FOREIGN REMITTANCE

The bank offers the overseas remittance services to the student studying out side the
country. NBP also offers foreign exchange in the form of traveler’s cheques to the
intending visitors.

 CURRENT ACCOUNT

These accounts are opened with the minimum amount of Rs.1000/ no interest is
permissible by the bank. The funds held in the account are payable on demand without
any limits on withdrawals. The bank normally opens current account for the business
need of the firms.

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Competitors:

The competitors of the National Bank of Pakistan are as follows:

Askari Bank Faysal Bank
Habib Bank Limited Standard Charter
United Bank Limited Prime Bank
First Woman Bank Bank Al-Falah
Muslim Commercial Bank My bank
PICIC Commercial Bank Silk Bank
Bank of Punjab Sonehri Bank
Dubai Islamic Bank Metropolitan Bank
National Savings Arif Habib Bank
Allied Bank Limited The Bank of Khaibar
Saudi Pak Commercial Bank Bolan Bank Limited
Ltd Platinum Commercial Bank Ltd
Union Bank Limited Mashreq Bank

Organizational Structure

Organizational Hierarchy chart:

NBP’s Hierarchy is a follows:

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 Chairman and
President
Board of
Directors

President
Board-Sub Secretariat Management
Committees Committee

Sports and Islamic Operations

Audit HRM Sub IT Sub Assets and
Culture Banking and Committee Credit
Committee Committee
Committee
Committee
Subsidiaries Liability
Committee
Committee

Corporate
Secretary Special Audit and Compliance
and Treasury
Board of IT Asset Inspection Group
Investment Management
Director Group Management Group
Banking Group
Group Group
Group

HRM and EBD Islamic Credit Commercial Overseas

Operation
Admin
Group
and Banking Management and Retail Financial Coordination
Group TD Division Group Control and
Banking Division management
Group group

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Overseas
Regional
Offices
Offices

Regional Regional Credit Regional

Regional Regional Compliance
Operations Management
HR Chief Business Chief Chief
Chief Chief

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Number of employees
In Overall Organization=15204
In Civil Lines Branch=50

Main offices
The Head Office of the National Bank of Pakistan is at Karachi. NBP carries on its
business all the way through a wide set up of branches those are situated in the country
and out of the country very professionally and in point of fact. All branches execute their
functions under the rule of local Regional Offices and regional offices are proscribed by
the Head Office situated a superb building in the heart of Karachi’s center.

NBP has a wide domestic branch network consist of more than 1500 branches situated in
all over the country. NBP has also more than 24 branches out of the country.

SINDH
In the Sindh the main offices of the NBP are in the following cities;

 Karachi
 Dadu/ Sanghar
 Hyderabad
 Jacobabad/ Shikarpur
 Larkana
 Mirpurkhas/ Badin
 Nawabshah/ N' Feroze
 Sukkur/ Khairpur

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  Tharparkar

PUNJAB;
Punjab has the main offices of the NBP in the following cities;
 Lahore
 Faisalabad
 Gujranwala
 Sialkot/ Narowal
 Islamabad
 Jhang
 Jhelum/ Gujrat/ Chakwal
 Bahawalpur
 D.G. Khan/ RYKhan
 Multan/ Baha'nagar
 Murree/ Attock/ Gilgit
 Rawalpindi
 Sahiwal
 Sargodha/ Sheikhupura

NWFP’
In the NEFP main offices are in the following cities;
 Peshawar
 Abbott Abad
 D.I. Khan
 Kohat

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  Mardan

BALUCHISTAN;

Main Branches of NBP are in the following cities;

 Queta
 Azad Kashmir
 Muzaffarabad
 Mirpur

NBP REGIONAL OFFICES;

 Karachi (South)  Bahawalpur
 Karachi (West)  Dera Ghazi Khan
 Hyderabad  Sahiwal
 Larkana  Federal Capital Islamabad
 Sukkur  Rawalpindi
 Quetta  Jhelum
 Gawadar  Gujarat
 Lahore (Central)  Peshawar
 Lahore (East)  Mardan
 Gujranwala  Dera Ismail Khan
 Sialkot  Abbott Abad
 Faisalabad  Muzaffarabad (A.K.)
 Jhang  Mirpur (A.K.)
 Sargodha  Gilgit (sub-region)
 Multan

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NBP OVERSEAS BRANCHES

America and Europe Region

1) USA
2) Canada
3) Germany
4) France

Far East Region

1) Hong Kong
2) Japan
3) South Korea
4) China

Middle East, Africa & South Asia Region

1) Bahrain
2) Egypt
3) Bangladesh
4) EPZ

Central Asian Republics

1) Afghanistan

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 2) Turkmenistan
3) Kyrgyz Republic
4) Kazakhstan
5) Uzbekistan
6) Azerbaijan

Subsidiary;
1. NBP Kazakhstan (Almaty)

Joint Venture;
1. United National Bank (UK)

Representative Off;
1. Canada (Toronto)
2. USA (Chicago)
3. China (Beijing)
4. Uzbekistan (Tashkent

Introduction of all departments

Following are departments in NBP:

1. Deposit Department
2. Account Opening Department
3. Bills Remittance Department
4. Cash Department

24
 5. Clearing Department
6. Credit Department
7. Government Department
8. HR Department

Deposit Department

It is state that deposits are the blood of banks due to entire body of financial institutions
to get work. The reason is that the main function of the banks is that they activate the
money in the economy. Deposits as the banks get them by borrowing are the liability of
the bank and the profit of the bank is measured by the difference between banks borrow
and lend the money. The money is borrowed from them who have access capital.
The following types of ledgers are concerned with deposit department:
 Saving Ledgers
 Current Ledgers
 Profit and Loss Sharing Ledgers
 Fixed Deposit Register
 Cash Book
 Daily Profit and Loss Summary Book
 Voucher Register

Account Opening Department:

This department is related to open new accounts of the customers and infect opening of
an account is the establishment of the relationship between the bank and customer. By
opening an account at a bank a person becomes a ‘customer’ of the bank.
Opening of an account is of essential for a bank, great care should be taken in this matter.
NBP has precise the system and method for opening on account which are severely
abided by all its branches. Following are the types of accounts open in the NBP;
 Current

25
  PLS SNTDR
 PLS saving
 FC
 PLS term
 Premium saver
 BBA
 Call deposit
 NIDA

Bills Remittance Department

Remittance means transfer money from one place to another place. NBP provides
number of services to transfer money from one place to another place. Pak remit is an
internet based Home Remittance Service. This service is available to U.S. inhabitants for
sending money to their relatives and friends in Pakistan. Bills Remittance Department
also works on Payment Orders and Short Credit.
The following are the main functions of this department. Remittance can take place in
three different ways.
 Demand Draft
 Mail Transfer
 Telegraphic Transfer

Cash Department

The most important section in the bank is Cash Department. The reason is that it
performs the following three main functions: Bank payments & receipts; Payments
against cheques are the bank payments and bank receipts include cash deposits made by
account holders. Government receipts & payments; Government receipts means
collection of income tax, property tax, sales tax and traffic challans are the Government
receipts and Government payments are the salary payments to Government employees

26
and Pension payments. Collection of utility bills; Utility bills include electricity, gas and
water bills. It also includes Ptcl bills.
The following books are maintained in the cash department:-

 Receiving Cashier Books

 Token Book
 Paying Cashier Book
 Scroll Books
 Cash Balance Book

Clearing Department

“It is the place where both the debtors and creditors are different commercial banks
and they settle their claims.” Clearing is the transfer of funds from one branch of bank
to the other branch of the same bank or the other bank on which the instrument is
drawn, without involving the cash through state bank’s clearing house.
All commercial banks are the members of the banker’s clearing house which make
easy the settling of daily balances due between member banks arising from the
cheques and cash transactions throughout the country, whether by the general public
or individual banks.
Following are types of cheques collected for clearing:
 Clearing cheques
 Transfer cheques
 Collection cheques

There are two types of clearing:

 Outward Clearing
 Inward Clearing
.

27
Credit Department;

The banks lend money by keeping some worthwhile securities, and banks are preferred
such types of securities those are not easily depreciate; they also lend money against
promissory note. The main purpose of the banks is to lend money because it is the main
source of profit generation for the banks. For this purpose State Bank of Pakistan has
approved set of laws named as “PRUDENTIAL REGULATIONS”, this law is strictly
followed by all the banks and if any bank does not obey this law then it should be
punished by penalties under the rule of SBP PR(S).
Credit Department is associated with other three departments related to financing i.e.
 Trade Finance
 Ijarah
 Corporate Banking

Government Department;

Payment of pension also is being done by this department. Department of Government

section receives all the provincial and central receipts. NBP makes payments to
following:
 Retired officers of Armed forces
 Civilian
 Retired officers of PAF and families
 Defense civilian pensioners
 Others ( KRL, OGDC, PAEC/ PR, RANGERS)

Documents required for the pension payments:

 Pension payment order
 No and date of NIC
 Pension book
 Photographs of the pensioner
 Two specimen signature, thumb and finger impression.

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HR Department;

HR Department provides basic background information about the organization to new

employees. All new employees are provided information about the working
environment, working hours and vacations by HR Department. It may be an informal
introduction or a lengthy formal course. NBP always exhibits a warm and cooperative
attitude towards new employees and welcomes them. It is accountability of HR
Department to manage employee’s relations and Job changes outside the organization or
within the organization i.e. Promotion, Transfer, and Demotion is also take place under
HR Department. Separations like Termination, Layoff, Resignation and Retirement are
also HR functions. It relates to hiring, compensation firing, and training of the
employees.

The functions under HR Department are:

 Medical
 Disciplinary cases
 Staff loan
 Leave record of employee
 Performance appraisal
 Office order
 Manpower planning

Comments on Organizational structure

Structure of National Bank of Pakistan is Bureaucratic Structure; it is a structure that

stress highly routine operating tasks achieved through specialization, in this structure
much formalized rules and regulations are followed, tasks are grouped into functional
departments, centralized authority, narrow spans of control, and decision making that

29
follows the chain of command. The structure of National Bank of Pakistan is very
centralizes decision are taken on time, Policies are issued by the head office and is
implemented within the bank as per the guidelines. There is a branch manager who looks
after the overall working of the branch and who directs the working of the bank
according to the instructions. It has the ability of innovation response to changing
environment, high ability of conflict resolution. Every person within each department is
assigned various tasks which increase their task performing ability via job rotation. No
department has interference in the working of other department. It increases the
efficiency of the department, as there is no external involvement by any person. Neither
they are answerable to any person with whom they are not directly concerned.

This reduces the ambiguities and complexities. The works are properly assigned and
delegated. Everyone knows whom to report in case of emergency and what to do in time
of crisis. The officers are well coordinated and assist each other in their work. There
exists a friendly work environment. Every one is given promotion opportunity. Overall,
the environment of NB bank is very well established and admirable. The way the
organizations structured is brilliant.

Plan of your internship program:

A brief introduction of the branch where you did your internship
I preferred to do my internship at National Bank of Pakistan the reason was that it is
largest and leading commercial banks of Pakistan and I want to continue my learning at
well reputed organization which would be productive both for the organization and me as
well. NBP is responsible to provide all services to its customer. .
When I joined the bank, I had no practical experience with regard to working of a regular
bank. Then I got an opportunity from the university authorities to join and work with
NBP to get experience of the rules and regulations that bank follows.
I left the bank with a thirst to learn more. I seek a chance in order to survive in a banking
environment.
Branch of NBP where I did my internship is the main Branch of Gujranwala and it is
located at Civil Line near Civil Hospital Gujranwala. By size, it’s a large level branch
having more than 50 employees working in it. There are 8 office boys working in the

30
bank. All offices are well furnished and managed accurately that there is no confusion or
mistake occurs in finding any office. By look its building look is very attractive.
The working and learning environment of the bank is very valuable and high quality.
Employees are ready to coordinate with you in all of your queries. I worked there for
eight weeks are learned a lot in this very short span of time. The whole staff of NBP bank
is very promising and intellectual, expert in their work, well mannered and efficient.
When you enter the bank, you can feel the difference at first sight. This branch is on the
way of progress by leaps and bound.

Starting and ending dates of your internship

I started my internship in National Bank of Pakistan on 15th November 2009. I worked
there for 8 weeks. My internship ended on 15th January 2010.

Names of the departments in which you got training and the duration of
your training

During the short time period of my internship in National Bank of Pakistan, I was given a
chance to work in following four departments of the bank;
1. HR Department
2. Account Opening Department
3. Government Department
4. Clearing Department
The purpose was to give me a close look of the whole working of a banking institution. I
spent 2 weeks in each department to learn more and more from the appointed staff; it’s
really a wonderful learning experience.

Training program
Detailed description of the operations/activities of the department(s) I worked in.
During the short time period of eight weeks of my internship in National Bank of
Pakistan, I was given an opportunity to work in four departments of the bank. . The

31
purpose was to give me a close look of the whole working of these departments. I spent
two weeks in each department and trying to gain maximum knowledge.
I have covered following departments in NATIONAL BANK OF PAKISTAN civil lines
branch gujranwala.

HR Department
Accounts Opening Department
Government Department
Clearing Department

Huaman Resource Depatment

“To understand the heart and mind of a person, look not at what he has already
achieved, but at what he aspires to”

HRM department: During my internship period I learnt about how to handle different
people in diverse state of affairs, how to perform job well etc. In HRM I studied about
hoe to handle the human resource and how it will be adjust in desired departments proper
planning is required to make every task attainable.

I work with Mr. Ghulam Abbass HR Manager (OG-II / MTO) of National Bank of
Pakistan civil lines branch Gujranwala and I observed the following duties that must be
preformed by HR Manager to deal with human resource effectively and obtain the
desired objects and goals.
Description of some of duties is as follows:

(HR Development & Personal Section)

 He will be responsible to conduct the Job Analysis of the branch.
 He will be responsible to update HRIS of the branch.
 He will be responsible to coordinate with Regional Office for the effective
implementation of Employee Mentoring / Communication Programs or any other
program.

32
  He will be responsible to maintain staff rotation records within the branch.
 He will be responsible to coordinate Training program.
 Coordinate with Regional Office regarding the effective implementation of TNA
for employee’s development.
 He will be responsible to conduct/determine skill Gap Analysis of the employees.
 He will be responsible for pay-for-performance implementation and handle all
related issues.
 He will be responsible for effective implementation of Performance Standards as
per laid down procedures.
 He will be responsible to assist in Manpower Planning Exercise.
 Maintenance of all HR related records of Executives/Officers/Staff posted at
branch.
 Preparation of Seniority lists.
 Correspondence relating to Temporary Employees of the branch and maintenance
of their list.
 GHS/VHS correspondence, if any.
 Preparation/processing of appraisals of Executive/officers/Staff posted at the
branch.
 Preparation of all returns/statistics of staff position to Regional Office/Head
Office
 Processing of Audit & Inspection related to HRM Section of branch.
 Finalization of payments, salaries/perks and all kind of benefits pertaining to
human resource.
 He will be responsible for processing/correspondence regarding Encashment of
LPR/Optional Retirement of Officers/Executives/Staff.
 He will be responsible for fixation of pay on promotions and revised salaries of
Executives/Officers/Staff posted at branch.

Employee Welfare and Benefits Section

33
He will process staff loans/medical Bills & Facilities/TA Bills to Employees and their
dependents.
He will follow-up pending cases with RO/HO relating to HR.
He will be processing of Medical Bills & Facilities/Hospitalization Bills of retired
employees.
He will maintain all cases/correspondence files/books pertaining to this section
He will process all cases of Educational Stipend, Marriage Grant, Honorarium for
securing 1st position/Hafiz-e-Quran, Transfer Grant, Funeral Charges, office Work
expenses and monthly subscription to newspapers/ journals/ magazines/ periodical.
He will be responsible for preparation of austerity statement.
Frauds and Forgeries.
He will be responsible to look after all cases relating to Fraud, Forgery / Dacoit cases
pending with Govt/Law enforcement Agencies or Regulators.
Preparation/presentation of all ripe cases before the competent authority at Region/HO
for final decision.
All allied/related correspondence with regard to above assignments and any other duties
to be assigned to him/her by his/her superiors.

In HRM Department, I observed the following rules and regulations for Leave.
Leaves in Days

Casual leaves=18
Privilege Leave=30
Sick Leave=20
Maternity Leave=90
Ex Pakistan Leave=45 days for Hajj

Staff loan:
I observed the following procedure of issuing staff loan to staff members to help
them out of financial Problems

34
Staff loan sanctioned by Regional HR Chief.
Vouchers are prepared for salary and staff loan.
Invoices include all kind of allowances, loan details, tax deduction.
Vouchers and invoices are signed by HR manager and operations manager.
Documents are sent to transfer terminal.
Terminal member punches, credits, and transfers the salary and loan installments to
relative PLS Accounts.
Demand finance has different kinds of loans. Following is the detail of different Loans

Category Markup Tenure Minimum Maximum

(%age) (Years/Days) Amount Amount
(Rs.) (Rs.)
House 3% 20 Years 110% of basic
Building 1200, 000 for salary
Finance (HBF) Officers

700,000 for
clerical and non
clerical staff

Motorcar 4% 10 Years 90% of the cost As same as

Finance of Suzuki minimum
Cultus amount
(Officers)

90% of the cost

of Liana
(Executives till

35
 AVP)

90% of the cost

of Corolla
Excel
(SVP/SEVP
etc.)

550,000 for
clerical and non
clerical staff
Motorcycle Free of markup 10 Years 80,000(for All) As same as
Finance minimum
amount
Computer 4% 5 Years 50,000(for all) As same as
Loan minimum
amount
18 months Free of markup 18 months House Rent per House Rent per
House Rent month*18 month*18

Note: Advance House Rent is taken once by employee and is being deducted from salary
every month and amount is covered by bank in 18 months. No markup is required.

Medical facility:
HRM gives medical allowance in the following manner to help the staff members.
1. within Ceiling Facility:

Clerical/Non Clerical
156% of Basic Salary
Officers
114% of Basic Salary

36
Executives
102% of Basic Salary

Following types of bills can be claimed:

Consultancy Bills
Lab Test
Dental test
2. Hospitalization:
Approved by bank
E.g. Gondal Complex, Fazal, Chaudhry
Application is being approved and then whole procedure is started.
3. In excess of Ceiling (prolonged illness)
12 diseases e.g. sugar, hepatitis, cancer
Such patients who have to take medicines monthly and an incentive are given to them in
the form of salary.

ACCOUNT OPENING DEPARTMENT

The opening of an account is the establishment of the banker customer relationship. By
opening an account at a bank a person becomes a ‘customer’ of the bank.

ACCOUNT OPENING AT NBP;

As the opening of an account is of crucial importance for a bank, great care should be
taken in this matter. NBP has specified the rules and procedure for opening on account
which are strictly abide by all its branches.

RESPONSIBILITIES OF ACCOUNT OPENING DEPARTMENT;

Following are the responsibilities of the account opening department;

37
  Account opening
 Documentation at the time of opening of an account
 Issue cheque book
 Closure of an account

ACCOUNT OPENING;
Whenever a new customer enters in the bank with the intention to open an account, the
banker is required to determine his/her category according to his status and needs. NBP
has following categories of accounts:

 Individual Account
 Joint Account
 Minor Account
 Sole proprietor Account
 Partnership Account
 Company Accounts
 Accounts of the Welfare/ Societies/Clubs/ NGOs

DOCUMENTATION:

Each one of these account has different requirements with regard to the documentation.
But the documents which are common in all these categories are:

 Computerized National Identity Card (CNIC) of the applicant

 Introducer - the person should be the account holder of the NBP (same or any
branch) from last six month and maintaining his/ her account regularly.

INDIVIDUAL ACCOUNT;

This category is further bifurcated into following sub-categories:

38
  Business Account
 Student Account
 Salaried Person
 Household Women

All these persons are required to fill the same account opening form. The only difference
comes in case of the supporting documents.
In case of the business account the great care should be taken in inquiring the source of
the income. The business proof of the customer is required in shape of the visiting card or
the letter head.
In case of the student account the college card and the bonafide certificate from the
institution is demanded by the bank.
For salaried person employment proof is asked at the time of opening an account. The
salaried person is required to provide Appointment Letter so that the banker can know
about the joining date, salary and designation of the potential customer.
While opening the account of household women the routine documentation is done. But
the important thing to inquire and consider is that what will be the source of the
transaction in this particular account. The banker should be prudent enough to see and
point out any unusual volume or number of transaction in this account.

JOINT ACCOUNT;

Any number of persons can open a joint account. Every person is required to fulfill the
same requirement as mentioned under the head of the individual account in the personal
capacity.

SOLE PROPRIETOR ACCOUNT;

39
  NTN No. – which should clearly mention the business name, client name and
address of the business place
 Request for the account opening on the Letter head of the business
 Business stamp

PARTNERSHIP ACCOUNT;

 NIC of all partners

 Partnership deed attested by the Notary Public
 NTN certificate
 Form- C (if partnership is registered)
 Rubber stamp according to following format.

COMPANY ACCOUNTS;

 NIC’s of all the directors

 Rubber stamp according to their designation
 List of director attested by chief executive
 Resolution of the board of director to open bank account (on bank format)
 Form 29 duly attested by SECP:
 This certificate contains the details of directors and officers including Chief
Executive, Managing Agent, Secretary, Chief Accountant and Auditors and Legal
Advisor.
 Article of Association(AOA) / Memorandum of Association(MOA)
 NTN
 Certificate of incorporation
 All the above documents should be sealed and signed (with stamp) by company
secretary.

40
MINOR ACCOUNT;

 CNIC of Guardian
 Business/ Employment Proof of Guardian
 Bay Form/ Birth Certificate duly original seen by Attorney holder
 Date of majority of the minor should be mentioned on AOF & SSC
 Only personal information of guardian on AOF. No information of minor on
AOF.
 No signature of minor on account opening documents
 Title of account should
 Minor Name (M)/ Guardian Name (G)
 (M=Minor, G= Guardian)
 Stamp affixed on Account opening form and signature specimen card.

GUARDIAN WILL OPERATE THE ACCOUNT EVEN IF MINOR

ATTAINS MAJORITY.
Guardian can operate the account after majority of the minor as mentioned in the stamp.

ACCOUNTS OF THE WELFARE/ SOCIETIES/CLUBS/ NGOS;

 Resolution (Name & signature of authorized signatories along with CNIC

numbers and operating instructions)
 CNIC
 By- laws
 Registration certificate
 List of governing bodies
 Legal opinion
 Approval form Area Manager and System Operations.

41
TYPES OF ACCOUNTS;

CURRENT ACCOUNT;

It is the most demanded account in any bank. Individual partners, companies

associations, clubs, societies, and NGOs are eligible to open current account.
Here are some features of the current account offered at NBP
 Non interest bearing checking account.
 Minimum account opening requirement of Rs.10, 000 only.
 Free debit card can be used to withdraw cash and make purchases at thousands of
outlets across Pakistan.
 This account can be opened in foreign currencies also.
 No restriction on number of withdrawals and on number of deposits
 Minimum average balance Rs.10,000/-
 Rs.100 will be deducted in case of balance maintained below the minimum limit
of deposit.
 No Zakat deduction.

PLS SAVINGS ACCOUNT;

This account helps the customer to earn a handsome amount on their saving. Any one or
more individuals or partners can open a PLS saving account with the Bank.

 Profit & Loss Sharing Saving Bank Account.

 Minimum account opening requirement of Rs.5, 000 only.
 No restriction on number of withdrawals and number of deposits.
 Profit on PLS saving account is calculated on minimum monthly balance basis.
 Profit on saving accounts is credited to the customer account on half-yearly basis.
 Profit rates are subject to charge in response to change in the return earned by the
Bank on deployment of funds.

42
  Free debit card can be used to withdraw cash and make purchases at thousands of
outlets across Pakistan which provides access to funds 24 hours a day.
 The charges for maintaining the minimum balance in the account are Rs.50 per
month.
 Saving account can be opened in other currencies also i.e. in Euro, Pound
Sterling, U.S Dollar etc.
 Zakat is deductible on balance in this account otherwise an affidavit is provided
by the customer.

PROCEDURE OF ACCOUNT OPENING;

A. ACCOUNT OPENING FORM;

The first step in the procedure of opening an account is the filling of Account Opening
form. At NBP the account opening form is titled as the Relationship Contract. It contains
all the requisite information needed to open and operate an account according to the
specified rules and regulations.

CONTENTS OF ACCOUNT OPENING FORM;

The following details are required to furnish the Relationship Contract.

1. TITLE OF ACCOUNT:

It is the name through which the customer is intended to operate an account.

2. ACCOUNT NUMBER:

This is the serial number given to each account number through which an account is
accessed whenever it is needed.
This serial number starts from a Code, which is different for different types of accounts.
These codes help the banker to identify type of an account an account at first sight.

43
The following is the list of codes for different types of account used at NBP.

 Current Account
 Saving Account
 Royal Profit Account
 Basic Banking Account
 USD Account
 Euro Account
 Pound Sterling Account

3. PERSONAL INFORMATION

After giving the title to the account, the personal information of the customer is written
down in the Account Opening form, like Name, Father’s name, Mother’s name,
Employment information (Address of employer, Name of employer, job title) in case of a
salaried person, NIC #, Nationality, Residential Address, Phone number etc.
In case of joint account the personal information of each account-holder is taken.

4. NEXT OF KIN

Mention Name & address of person/next of kin to be contacted for ascertaining

consumer’s whereabouts after the expiry of three years from the date of last operation in
his account, to inform him/her of the existence of his account when customer were not
available at the given date.

5. ADDRESS FOR THE CORRESPPONDECE

Address of the customer is needed to contact the customer.

6. CORPORATE ACCOUNT

In case of company account the additional information regarding the address of the Head
office and Date and Place of the incorporation is required.

44
7. TYPE OF ENTITY

That either the applicant falls under the category of individual, sole proprietor or
company etc.

8. NATURE OF THE ACCOUNT

e.g. example current account.

9. CURRENCY OF ACCOUNT

Customer has to mention the currency, in which he is going to operate.

10. DETAILS OF THE TERM, NOTICE & CALL DEPOSIT

It includes No. of receipt, Amount, Period of the deposit.

11. ZKAT DEDUCTION INSTRUCTION

12. INSTRUCTION FOR OPERATION OF ACCOUNT

Under this head the applicant specify that how he/ she will operate the account. If
applicant is individual then he will select the option of ‘Single’ but in case of a joint
account the customers have to make choice among the options of the ‘Joint’ and ‘Either
or Survivor’ which means that any of the joint account holder can operate the account.
The option of ‘Any one of’ meant for the Partnership Account.

13. INTRODUCER’S DETAIL

The introducer’s name, account no., introducer’s signature and the signature and stamp of
the verifying officer are also required to fill in the account opening form. If the introducer
is the account holder in any other branch of the NBP then the account opening officer is
bound to obtain the verification from that branch. Introducer should be operating any
account from last six month on regular basis that is the account should not be a dormant
account.

45
14. DECLARATION

In the end the applicant(s) agree with the rules and regulations governing the account
operating activities by signing the Relationship Contracts. In case of sole proprietor or
company account the stamp of the business should be affixed.

15. TERMS & CONDITIONS GOVERNING THE ACCOUNT

The account opening form of every bank has the terms and condition governing the
account as its complementary part so that the customer will be aware of all these terms at
the time of entering this contract. These terms and conditions should be read and signed
by the applicant(s).

ACCEPTANCE AND VERIFICATION OF DOCUMENTS:

After filling the Relationship contract the bank officer asks the required documents from
the customer as mentioned above in case of each entity. The necessary verification is
done.

1. VERIFICATION OF THE CNIC

According to the regulation of the SBP now the banker is responsible to verify the CNIC
from NADRA. For this purpose the customer signs an authority letter by which he/ she
gives him the authority to verify the CNIC through the on-line CNIC verification service
of NADRA.

2. SIGNATURE DIFFERNET FROM CNIC

If the customer wishes to use a signature to operate his account which is different from
the one on his national identity card, then he will give an Undertaking under the witness
of the Introducer, that he will be responsible for this change of signature.

3. SIGNATURE SPECIMEN CARD

An important and foremost thing to be signed by a customer is the Signature Specimen

Card (SSC). Afterward this card is used to match the signature of the customer every time

46
he or she deals with the bank. The original card is sent to the head office after scanning it
to the system.

4. ACCOUNT OF THE ILLETERATE PERSON

In case of the account of an illiterate person the only photo account can be opened. In this
account the customer has to come personally to the bank every time he/ she will deposit
to or withdraw from his/ her accounts. So, some additional documents are required to
obtain from such applicant at the time of opening a photo account like two photographs
of applicant(s), one is put on the account opening form and the other one is out on the
signature card. Also a declaration is signed by the customer in order to open a photo
account, on which the thumb impression are taken of the customer. This is done under the
witness of the introducer.

5. APPLICATION FOR THE ON-LINE ARRANGEMENT FOR

CLEARING/TRANSFER/CASH TRANSACTION

If the customer wants to have the account to be on-line, so that he can avail the facility of
the on-line banking, then he will sign the application for the use of this facility at time of
opening an account or at any time later on.

6. KNOW YOUR CUSTOMER (KYC)

It is a document which is prepared under the special instruction of the SBP. As per SBP
regulation it is very important for the banker to know his customer very well. This form
is prepared by the account opening officer according to the information given by the
customer to him. Also the banker is required to update KYC time to time. This form is
reviewed by the Branch Manager or Manager Operation.

LETTER OF THANKS:

After this process a letter of thanks is sent to the customer in order to verify that the
address provided by him is correct. But if the customer chooses the ‘Hold Mail Facility’
then no letter of thanks is sent to him.

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ISSUANCE OF CHEQUE BOOK:

1. FIRST TIME ISSUE OF THE CHEQUE BOOK

After the account is opened, the customer requires a cheque book to conduct operation in
his account. In order to have a cheque book the account holder signs an application to
issue a personalized or blank cheque book.

 PERSONALIZED CHEQUE BOOK:

A cheque book having the account title and account number printed on it is called as
Personalized Cheque Book. This assures the safety of the cheques to be used.

 BLANK CHEQUE BOOK:

It is the simple cheque book with no account title or account number on it.

2. REISSUANCE OF CHEQUE BOOK

When two or three leaves are left in the cheque book, the account holder can demand for
a new cheque book, so customer fills “requisition slip” which is attached in cheque book
and gives to banker and receives a new cheque book for continuing the account. An
account holder can also any other person to receive the new cheque book by giving the
authority in the requisition slip. The authorized person should bring the copy of CNIC to
receive the cheque book.
3. CHARGES FOR THE ISSUANCE OF NEW CHEQUE BOOK

The cheque book can be issued of 10, 25 or 50 leaves as per the requirements of the
customer. The charges are Rs.5 per leaf where the excise duty is also charged. These
charges are paid by the customer in cash when the cheque book is issued at first. While at
the second issue and so on the charges are deducted from the account.

4. LOSS OF THE CHEQUE BOOK

In case the cheque book is lost by the customer then first step the customer should take is
to stop the payment of all the cheques. The charges for stopping the payment are Rs.200/-

48
per cheque or Rs.500/- for the whole cheque book. The report the cheque numbers of the
remaining cheques at the time of the lost. The officer of the NBP will enter these
numbers in the system as stopped. Now no body can encash these cheques all over the
Pakistan at any branch.
Second move is to issue a new cheque book in lieu of the old one. For this the customer
signs a ‘Form B’ as a request of the loss and requisitions of the cheque book. The charges
of the Form-B are Rs.100/- . It is one of the security documents of the bank. The Form-B
requires a guarantor to sign on it. Along with the For-B the customer also signs an
indemnity form to indemnify the bank from any liability claim or loss that may arise by
the misplacement of the cheque book.

CLOSING OF ACCOUNT;

There are number of reasons, why an account is closed. Some of most common reasons
are mentioned below:

At the client’s own request

Death of account holder
Bankruptcy of account holder
Liquidation or winding up under the companies act.
Dormant account: a dormant account is an account which is not being operated by the
customer from last six month. In this case the customer has to request the bank in written
form to allow operation in such an account mentioning the reason of not operating the
account regularly.

PROCEDURE FOR CLOSING AN ACCOUNT

When customer wants to close his or her account due to any reason, he gives the written
request either on simple page or on the bank format account closure request. Surrender
the cheque book with the bank which immediately destroyed by the bank officer. The
customer pays a statutory fee of Rs.100 to the bank in case of the current account. There
are no charges for the closure in other types of accounts. The account opening officer gets
an annexure approved by all the departments and then closes the account. This is a sort of

49
clearance from all the departments. Account closed log file is printed in order to complete
the process of closing an account. In the end the account opening form is filed in the
closed accounts file. The account which is closed, that account is cancelled and never
issued to any other person.

UPDATING OF ACCOUNT

It is the responsibility of the account opening department to update any changes in the
account information as they take place.
The following changes can be the change in the address, phone number and operating
instructions.

GOVERNMENT DEPARTMENT
Government Department is very important section of the Bank because it is responsible
for any penalty imposed by SBP due to the negligence / non completion of work / books
and balancing. All officers monitor all heads of Govt. Section for well in time reporting
in monthly, quarterly, annual return to controlling office.
Departmental Head will be responsible for rectification of inspection / Audit irregularities
of his department and coordinate with branch compliance officer for submission of
remarks Sheet / clearance certificate.

GOVERNMENT RECEIPTS;

Government receipts means collection of the following

 Income tax
 Property tax
 Sales tax
 Traffic challans
 Court fine

50
  Old age receipts
 Malia

GOVERNMENT PAYMENTS;

Government payments include;

 Salary payments
 Pension Payments

Department of Government section receives all the provincial and central receipts.
NBP makes payments to following:

 Civilian
 Defense civilian pensioners
 Retired officers of Armed forces
 Retired officers of PAF and families
 Others ( KRL, Oil Gas Development Corporation , Pakistan Aero E Complex /
PR, RANGERS)

DOCUMENTS REQUIRED FOR THE PENSION PAYMENTS:

 Pension payment order

 No and date of CNIC
 Two specimen signature, thumb and finger impression
 Photographs of the pensioner
 Pension book
Officer enters them in a ledger to keep permanent record.

DOCUMENTATION;

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  Disburser portion of the PPO is filed in serial No and kept in lock and key with
accountant.
 All particular of PPO are entered in PPO register.
 The first payment is made to pensioner after proper identification. In case any
clarification staff referred the pensioner to general accountant or Head office.

REIMBURSMENT OF PENSION CLAIM:

Branch prepares and send the RBV on link branches along with payment scroll (scroll is
the document upon which all vouchers and their payments are recorded) and paid pension
bills on the very next day.
Link branch consolidate the statement on Performa B including its own receipts and
payments.
Duplicate copy of the consolidate statement is sent to SBP (State Bank of Pakistan) local
office by link branch along with debit credit authority to the bank account.
Branch submits monthly statement of receipt / payment on the revised Performa to the
link branch.
Local treasury branch on the receipt of RBV along with scroll, payment bills and challan
etc are debit credit the government account on the same day.
Treasury branch report the consolidated receipt and payment figure (not branch wise)
including their own receipt and payments to finance division / Head Office.

SUBMISSION OF DOCUMENTS;

Branches submit the following documents to respective treasury office. SBP offices
under preprinted cover letter in the morning of next working day, through special
messenger/registered post.

TO TREASURY BRANCH:

Following documents are submitted to the Treasury Branch:

 Government Debit Scroll (Separate scroll)

52
  Daily statement of payments inclusive government payments
 Consolidated daily statement of government payments inclusive others

TO STATE BANK:

Following documents are submitted to the Treasury Branch:

 Letter of reimbursement
 Consolidated statement (daily of government payments inclusive others)

STANDERS:

Standers that have been made by the bank regarding pension payments:
 Payment of pension to pensioner should take 15 to 20 minutes.
 Government receipts should take 10 to 15 minutes.
 Passport fee collection within 5 minutes.
 Traffic challan within 5 minutes.
These entire standards are being fulfilled by the staff within time. But due to the large
numbers of customers it makes difficult for the cashier to handle them in time. A single
voucher should be cleared within 5 minutes and it is but other customers have to wait for
their term for almost half an hour.

BRANCH MANAGER DUTY REGARDING PENSION;

Manager has to ensure that correct payment is made and its proper record is maintained.
Branch manager has to ensure that no cause of complaint is arising. Hence the pensioner
does not go to the Treasury office or State Bank of Pakistan unless any renewal of change
is required by him to be fulfilled inevitable.

53
Manager is respectfully managing his duties and is keeping the proper record regarding
pension. In case of any confusion and clarification manager refers the pensioner to head
office or their relative company office.

RESONSIBLITY OF THE GOVERNMENT OFFICERS;

The incharge of Govt. and officers shall be held responsible for any penalty imposed by
SBP due to the negligence / non completion of work / books and balancing. All officers
will monitor all heads of Govt. Section for well in time reporting in monthly, quarterly,
annual return to controlling office.

The Incharge and officer shall be responsible for:-

 Supervision of all Govt. receipts / collection and transfer there of to SBP / account
office well in time.
 Responding of RBVs of all linked branches for Govt. receipts / payments and
transfer there of to SBP well in time and scrolls there of should be submitted to
SBP and account office.
 Daily Railway collection must be transferred in Railway fund with SBP
Gujranwala on daily basis.
 Daily CBR collection should be transferred in SBP account well in time on daily
basis.
 Proper reporting of summaries / transfer of fund should be made properly and
insure no complaint from SBP / any other authority.

DUTIES OF OG-I OFFICER IN GOVERNMENT DEPARTMENT;

OG-I Officer who is work in Government Department is Muhammad Nawaz Cheema and
his duties are as follows;

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  Supervision of all Collection Accounts / Payment Transaction / Daily Railway
Collection in Govt. Section for transfer their off to SBP / Account Office.
 Govt. / Railway Pension Payment (Cash / transfer)
 Renewal / registration of Federal Govt. Arm license
 Double signatory of all Govt. receipt / Payment voucher
 Preparation of Govt. Payment Scroll
 Preparation of all statements / returns.
 Counter signing of all utility bills
Any Other assignment by Operation Manager / Branch Manager

DUTIES OF OG-II OFFICER IN GOVERNMENT DEPARTMENT;

OG-I Officer who is work in Government Department is Asim Qadeer Cheema and his
duties are as follows;

 Govt. receipt cash / transfer

 Transfer of daily Govt. Receipt / Payments / Railway collection to SBP.
 Counter signing of all Govt. receipt challan / voucher
 Dispatch of all Govt. receipt payment scroll and vouchers along with daily
summary of Govt. receipt / payment to account office / SBP.
 Double signatory of all Govt. receipt /payment voucher
 Any other assignment by the In charge of Govt. section.

DUTIES OF MESSENGER IN GOVERNMENT DEPARTMENT;

Messenger of is Government Department of NBP is Rafaqat Ali and his duties are as
follows;
 Exchange of files within the branches of NBP
 Copy of files
 Signature from Manager, Operation Manager etc

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  File Maintaining, Binding etc

OBSERVATION REGARDING GOVERNMET SECTION;

According to the observation regarding Govt. Section, the employees in this department
tries its best to fulfill their duties but because they are not well educated and trained that
is why some problems keep arising time by time. To avoid and to eradicate these
problems employees should get training once a year so that they can meet the current
challenges and can know new techniques to handle the transactions.
Incharge of the department is an experienced person and educated. The way of recording
transactions is traditional. No proper bank software (computerized system) is used to
make the summaries of the receipts and payments. In result bank do not have any proper
record of its previous transaction except hard copies that take so much time when it has to
be audited. For example few days before the Incharge of the department need the
summary of the day 13th of the month but no record were found except they had to try to
find the hard copy of the summary and it took half an hour. But the same work by the
computerized system can be completed just in a single click. Not only daily summary but
also the monthly, quarterly, semiannually and annually summaries can be made in few
minutes through computerized system. So if we want to make our banking more efficient
and want to create more accuracy we have to adopt the modern computerized techniques
to make our work fast and accurate.
Employees in Govt. Section are not well familiar with the computer education. Training
programs for the current employees are not held because of which the employees can not
know the new trends of banking system.

CLEARING DEPARTMENT

The basic function of clearing department is to provide services to customers in

collection of their cheques of other banks, whether they are in city or outside the city. The
customer can get the money in his account at NBP from the cheques drawn on another
bank. The bank accepts the cheque in the clearing which it is drawn through the clearing
house i.e., State Bank of Pakistan.

56
 CLEARING

”The transfer of funds from one branch of bank to the other branch of the same bank or
the other bank on which the instrument is drawn, without involving cash through “State
Bank’s clearing house”.

CLEARING HOUSE

“A clearing house is an association of commercial banks set up in a given locality for the
purpose of interchange & settlement of credit claims”.

TYPES OF CHEQUES COLLECTED BY THE CLEARING DEPARTMENT;

a) TRANSFER CHEQUES
Transfer cheques are those cheques, which are collected and paid by the same branch of
bank.

b) TRANSFER DELIVERY CHEQUES

Transfer delivery cheques are those cheques, which are collected and paid by two
different branches of a bank situated in the same city.

c) CLEARING CHEQUES
Clearing Cheques are those cheques which are drawn on the branches of some other bank
of the same city or of the same area which covers a particular clearing house
TYPES OF CLEARING

Clearing department deals with the two type of the clearance;

These are stated below:
1) - Outward clearance
2) - Inward clearance

1) - OUTWARD CLEARANCE

57
 It means the cheques of another bank, which are presented on our branch
by our customers. Outward clearing results into inflow of cash from the payee bank.
Our National Bank of Pakistan branch sends the different instrument like payment order,
cross cheque, Remittance for the purpose of clearing through two ways.
 Local Clearing (NIFT)
 S.C (Short Credit)

LOCAL CLEARING (NIFT);

NIFT stands for National Institution of Facilitation Technology and it is the source of
collection of cheques or instruments, it performs following functions;

a. Accept the Cross Cheque or instruments from Account Holders.

b. Accept the Cross Cheque or Remittance from our NBP local Branches

a. ACCEPT CROSS CHEQUES OR INSTRUMENT FORM ACCOUNT

HOLDERS;

NIFT accepts the Cross Cheques or instruments from Account Holders by following way;

⇒ Fill the transfer voucher then receipt is given to the account holder and voucher is
kept.
⇒ Three stamps is place. First cross stamp is placed in the front side, Second
clearing stamp of next day date and third payee’s account will be realized.
⇒ Enter all the instruments in the NIFT register in Local & Sialkot portion
separately.
⇒ Sign by the officer in the back side of every instrument.
⇒ Made the NIFT card in which mention following things
⇒ Branch Name, No of Instruments, and Total Amount and signed by the
Remittance officer.

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 ⇒ Next day after clearing fanfold came from Dist Court Sialkot in the Name of Our
Branch.
⇒ Deduct the different type of bank charges from those entire people which submit
the Instrument or cheque for the purpose of clearing and this instrument belong to
Sialkot. According to following rate.

IN CASE OF INSTRUMENT OF NBP

Items Charges
Commission 0.16 % or Minimum Rs 50
Postage Rs 75
F.E.D 6 % of commission

BANK CHARGES FOR OTHER BANKS INSTRUMENT

Items Charges
Commission 0.16 % or Minimum Rs
50
Postage 75
F.E.D 6% of commission

⇒ Then
o Fill the commission voucher as whole
o Fill the transfer voucher postage as whole
o Fill transfer voucher fro F.E.D as whole
o After filling such voucher past the stamp of bank transfer and signed by the
officer on all the voucher then transfer these voucher in particular account.

ACCEPT CROSS CHEQUE OR REMITTANCE FROM OUR

LOCAL BRANCH;
⇒ Place two stamp of such instrument, First stamp is place on the back side of each
instrument which we collect from our NBP Local branches i-e civil line branch
Gujranwala.

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Our Br Endorsement Confirmed
For National Bank of Pakistan
Main Br.civil line Gujranwala
MANAGER

Second clearing stamp on the front side of the instrument and mention next day date in
the clearing stamp.

 Enter all the instruments in the NIFT register in Local & Sialkot portion
separately.

 Sign by the officer in the back side of every instrument.

 Made the NIFT card in which mention following things

Branch Name, No of Instruments, and Total Amount and signed by the Remittance
officer.

 Next day after clearing fanfold came from Dist Court Sialkot in the Name of Our
Branch

 Made the fanfold in name of such NBP local branch which send these instrument
DEBIT fanfold send the meaning of DEBIT fanfold is that our bank is transfer amount to
another NBP Branch.
CREDIT fanfold enter in our system. The meaning of CREDIT fanfold is that we are
decreasing our NBP General a/c because we send the amount to another branch.

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PROCEDURE OF CLEARING
CLEARING

INWARD OUTWARD
CLEARING CLEARING

Instrument Collection
Source

From Account Holder From NBP Local Branches

Fill Transfer Slip & Receipt Stamping

Hand over To Client Clearing Stamp
Our Branch Endorsement
Stamping Confirm
Cross Stamp
Cleaning Stamp
Payee,s Account Will be
Realized

Enter in NIFT Register

Separately

Signed By Officer

Separate Transfer Slip &

Cheque

NIFT Card

Hand Over NIFT Agent

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NEXT DAY PROCESS

From Account Holder From NBP Local Branches

Deduction of Bank
Charges Made Fanford in The Name
of Our NBP Local Branch

Filling Voucher
Commission, Postage, F.E.D

Transfer Clearing Amount

on Relevant account

INWARD CLEARANCE
It means cheques which are drawn on our bank but are presented to the branch of another
bank and on our branch but with in the city. These cheques are handed over to NBP agent
in clearing house. Inward clearing results into outflow of cash.

FOLLOWING REQUIREMENT FULFILL

⇒ Check all the stamp required
⇒ Check balance of particular account
⇒ Check the Drawer ‘signature
⇒ Check the cheque post dated or out dated
⇒ Check amount in words and figures
⇒ Advice received from issuing Branch
⇒ Payment stopped by the drawer
Note: If all the above mention requirement fulfill then cleared the cheque or vise
return the instrument through NIFT

ii. CHEQUE RETURN FROM S.C (SHORT CREDIT)

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When the account holder submit the instrument which is out of station then such
instrument send for clearing through S.C(Short Credit) Some of the Cheques are not
cleared. The relevant bank returns these cheques with MEMO that document explain
what are the main reason of cheque return.
In case of Cheque Return from S.C (Short Credit) then bank deduct the service charges
from such account holder account which is submit the cheque in our branch.
Fill the Debit voucher in which following things mention
o Name and Account of particular person
o Description (S.C No 425 return charges recovered)
Fill the Credit Voucher for (Commission)
Fill the Transfer Voucher for ( Postage)
Enter this cheque in the cheque return register in which mention following things
o Name and Account Number
o Date which is mention in the cheque
o Instrument Number
o Reason return of cheque
o Amount

PROCESS OF CHEQUE RETURN (S.C)

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 FILL THE
CHEQUE RETURN VOUCHER OF
FROM (S.C) RELEVANT
ACCOUNT

ENTER IN CHEQUE
RETURN REGISTER
Name and Account Number
Date which is mention in the cheque
Instrument Number
DEDUCTION OF
BANK CHARGES
Reason return of cheque
Amount Postage
Source through which cheque return i-e commission
NIFT, S.C

Commission charges (sample format)

A/c Net
Sr. No. No Amount Commission FED Postage Total Amount
1 50.00 3.00 75.00 128.00 128.00
2 50.00 3.00 75.00 128.00 128.00
3 50.00 3.00 75.00 128.00 128.00
4 50.00 3.00 75.00 128.00 128.00
5 50.00 3.00 75.00 128.00 128.00
6 50.00 3.00 75.00 128.00 128.00
7 50.00 3.00 75.00 128.00 128.00
0.00
TOTAL 0.00 350.00 21.00 525.00 896.00 896.00

CLEARING SECTION TABLES USED TO KEEP RECORD

ORDINARY INWARD
Ordinary Inward table contains the records of all those cheques that are drawn on our
branch but are presented in the other branches (HBL, ABL, Bank Alfalah, Faysal Bank
etc). These all cheques are sent to our branch through NIFT. NIFT collected all cheques

64
from the banks (Members of NIFT) from all over the country and then send the cheques
to the required bank branch.

ORDINARY OUTWARD
Ordinary Outward table contains the record of those cheques that are collected in our
branch. Our branch customers have different banks cheques that they get from their
business customers. Then these cheques are collected to transfer the amount from the
drawer’s account to the drawee’s account. Our branch records these cheques in the
ordinary outward table. Then these cheques are sent to the different banks on which these
have been drawn through NIFT.

INTERCITY CLEARING INWARD

Intercity includes those cheques that are drawn on the NBP branches from different cities
of the country. Intercity Inward means that the cheques that are drawn on our branch but
these cheques are presented in other NBP branches from different cities. Same bank
branches cheques are named as intercity clearing inward.
These intercity cheques are sent to our branch through NIFT in different envelopes with
the names of the city from these cheques have been collected. Intercity clearing inward
table keeps different tables of different cities. When all intercity cheques are recorded
then the credit voucher is prepared with the whole amount of all the intercity cheques.

INTERCITY CLEARING OUTWARD

Intercity outward means we sent the cheques out of city branches. These cheques are
drawn on out of city NBP branches but are presented in our branch. Then our branch
sends these cheques to the drawer’s account holding branch to clear the amount of the
cheque.

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SAME DAY CLEARING
Same day clearing table contains the record of those cheques or other instruments that are
drawn on other NBP branches but these branches are exist within in the city. The amount
of the instrument is debited or credited in the same day. The grand total of the
instruments is obtained and then a credit voucher is prepared under the head of Clearing
Adjustment Account. And on the next day a debit voucher is prepared with the same
amount under the head of Clearing Adjustment Account.

INPUT TABLE
Input table contains the amount of the different NBP branches that we have to balance
with them. This table contains two sides:
Debit side
Credit Side
The amount with the different branches of NBP is cleared through fanfolds. In the
morning our branch gets the debit and credit amount of different NBP branches with our
branch. In the afternoon our branch get the amount returned detail through NIFT and is
recorded in the return column of the input table. After recording returns we get the Net
Difference amount with the other branches. We also get the fanfold (Received fanfolds)
to balance the amount with the other NBP branches. After completing the input table
branch prepare the F-15 and F-16 fanfolds so that these amounts can be sent to the
different branches.

S.C FANFOLDS
S.C Fanfolds means short credit fanfolds. S.C is received from those branches that do not
have the membership with the NIFT. So these branches have to send the cheques and
other instrument by making S.C through DAK (by post).

RESPONDING ENTRIES
Responding entries table contains the various NBP branches clearing adjustment
outstanding entries paid to our branch. These responding entries are made in the result of

66
receiving the fanfolds from various NBP branches. After completing the entries a credit
voucher F-51 is prepared under the head of “clearing adjustment account”.

SUMMARY
At the end of the day our branch receives a fax from the State Bank of Pakistan Head
Office Karachi. The debit and credit amounts given in the fax must match with the
amounts in the clearing summary of our branch.
This summary contains the balances of clearing received and clearing delivered amounts.
At the end a hard copy of input table, ordinary inward, ordinary outward, responding
entries, same day clearing, intercity clearing and summary are kept as record in the files.

Detailed description of the tasks assigned

In HR department, I assist the HR Manager Mr. Ghulam Abbas in performing different
asks like described below and learn a lot in this department:
 I entered data of current and saving accounts into the computer system by using
special software called CIF.
 I match the entries in master file with the given voucher.
 I entered the expenses in their relevant accounts.
 I arrange the vouchers by date.
 I prepared debit and credit vouchers.
 I prepared office notes.
 I stamped different bills on the instructions of HR Manager.
 I was told about how salary is estimated every month.
 I was told about the whole procedure of staff loan issued to staff members.
Accounts department is the basic operations department of national bank of Pakistan.
Mr. Shahzad Cheema told me about the working of this department. Working in this
department gave me a chance to understand the whole process with interest because as
student I have read about it a lot. My assignments in this department were:
 Provide information to customer what are the benefits for having account with
NBP and how can one open the account.

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  I fill the account opening forms in.
 Recheck the forms to make sure that the forms are error free.
 I stamped the documents on the instruction.
 I checked the essentials to attach with the forms like ID card, Application form.
 Then I was told about to issue the cheque book.
In government section, I worked for two weeks. I tried to learn what is going on in
government section. Following are the findings of my work in this section.
 I learn how to behave with customers if they are in anger because usually pension
holders are aged people.
 I learned how to handle the documents like cheques, account information,
stationary bill etc.
 I observed the behavior of employees and customers.
 I learned how to keep the records
 I learned computer operating in this section.
 I learned how to manage the receipts and payments.

I visited the clearing section in the last. Experience at clearing department was awesome.
I was given instructions by Mr. Ali who is well qualified as well as experienced person in
his work. I learned in this department that fanfolds are used for inter branch transfer of
funds. Tasks performed by me were:
 I assist in separating the fanfold and NIFT (National Institutional Facilitation
Technologies)
 I stamped the cheques for outward intercity clearing.
 I prepared some memos
 I recorded intercity clearing entries in required register.
 I learned how to make bundle of outward clearing cheques.
 I learned those cheques which have been returned due to some reason must be
checked again.
 In this department, I again prepared debit and credit vouchers.
 A major issue was balancing the payments. I assist for this also.

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  I learned that it is of tremendous importance to keep the record of previous
clearing in hard form.
 I helped to keep the cheques separate which are brought in bank for clearing
purpose.

Structure of the HR Department

Department hierarchy

President

Dr. Mirza Abrar Baig

SEVP/Group Chief
Secretary

Institutional OD & Industrial Personnel

Legal Affair
Discipline Training Sports Wing Relations Administration
Wing
Wing Wing Division Wing

Recruitment and Staff Loans and HR Policies and Regional HR chief at

Compensation Wing Welfare Wing Projects wing regional Offices

Number of employees working under HR department

For National Bank of Pakistan the devoted, careful enthusiastic staff is one of the key
strengths of the bank. National Bank of Pakistan has been spending as investment in

69
increasing this precious source through requires based education to train and for career
development. NBP’s Human Resource purpose is to become an owner of choice and to
uphold complete industrialized agreement inside the organization.
NBP’s new appointing of top class MBAs as Management Trainee Officers (MTOs)
and look for aptitude within the bank has assisted in getting ready the second and third
level leadership outline which will shape NBP’s progression preparation process and at
the similar time, and will make sure that with the passageway of time, NBP’s employee
modification and ability enhancement program carries on. We also have in progress new
“Employee Communication Program” and internal executive periodicals to improve the
communication of top and middle level administration with the lower organization.
Female employees are being encouraged through female empowerment program under
which they are given accountable and demanding coursework. At present, over 60
females are employed as branch managers all over the country and some females hold
senior supervision positions.

NAME OF EXECUTIVES DESIGNATION AND RESPECTIVE

WING
Dr. Mirza Abrar Baig SEVP/ Group Chief HRM and
administration Group
Mosin Furqan EVP/Industrial Relation Division, M.D
NBP Staff Welfare Foundation
Muhammad Hanif EVP/Organization Development and
training wing
Mr. Iqbal Qasim EVP/Sports Wing
Muhammad Afsar SVP/Institutional Discipline Wing
Qamar Hussain SVP/HR Policies and projects
Wing/Recruitment and Compensation
Muhammad Ishaque Abbasi SVP/Personnel Administration, Staff
Welfare and Staff Loan Wing
A. Saeed Khan SVP/ Legal Affairs Wing

Any sub-department if exists under HR department

There is no any sub department working under HR department of NBP Civil Lines
Branch, Gujranwala

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Functions of HR Department

“The Guidance of HRM Committee of Board is a fuel for HR Team going forward
with smart goals”

Human resource planning and forecasting:

HR Department systematically reviews the requirements of Human Resource to make

sure that the required number of workforce with required skills is on hand whenever this
force is needed. This process is called Human Resource Planning.
Forecasting includes the demand and supply of employees in National Bank of Pakistan

HRP process
Following steps are included in Human Resource Process.

1. Determine Mission of Organization:

Overall purpose, scope and operations of National Bank of Pakistan those provide
information. As some one rightly said:

“Goals give you more than a reason to get up in the morning; they are an incentive
to keep you going all day”

2. Scanning the Environment of Organization:

This step covers the SWOT analysis of NBP as a whole organization. NBP’s HR
department identifies strengths, threats, weaknesses and opportunities of National Bank
of Pakistan.

3. Lay Down Strategic Goals:

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Human resource Planning involves in the setting of short term and long term objectives
and Goals. HRP ensures that the goals are measurable, specific, timely, challenging.

4. Devise the Strategic Plan:

Guiding principles are devised to accomplish the strategic goals and departmental goals

Forecasting HR Requirements:

This function emphasizes on the estimated required number and desired skilled
employees required by NBP in near future to accomplish its goals.

Methods to forecast HR needs:

There are various methods to forecast HR needs.

1
a) Zero-base Forecasting:
The NBP current level of employment as the starting point
To find out the future staff needs in National Bank of Pakistan this method is used by
considering the current level of employment as the staring pint.

b) Bottom-up Approach:
To offer a collective forecast of needs of employment, this method is used by each
successive level of the NBP, starting with the lowest

It is a forecast method in which each successive level of the NBP, starting with the lowest
and forecast its employee requirements in order to ultimately provide an aggregate
forecast of employment needs.

c) Mathematical model Usage:

For forecasting HR requirements, Mathematical model is also used. It shows the
connection between needed employees and demands the number of employees.
d) Simulation:
Try out with real world situation through a mathematical model representing the
situation.

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Employee’s recruitment and selection:

Recruitment:
Recruitment is the process of find out potential candidates for organizational vacancies.
Finding out the right person for right job is the main purpose of National Bank of
Pakistan by considering the perfect match between the abilities of employees with the
requirement of organization. NBP has its own policy of recruitment. According to the
recruitment policy of NBP, the requirements are:

o Candidate must be a citizen of Pakistan.

o She/he should have attained the age of 18 years but not exceeded the age of 35
years.
o She/he must be a business graduate; and

 Sources of candidates:
There are two types of sources of candidates,
1. Internal
2. External
Internal source is within the NBP and external source is out side NBP.

1. Internal sources:
In this category, opportunity is given to NBP lower level managers by promoting them.
Following are major categories of the internal recruiting in National bank of Pakistan.
o Contacts and referrals
o Job posting
o Promotion

2. External sources:
In this area, opportunity is given to the people outside NBP. Obtain employees with
different backgrounds to provide new ideas. These are external source:
o Colleges and universities
o Unemployed
o Older individuals

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 o Military personnel
o High schools and vocational schools
o Community colleges
o Competitors and other firms
o Self-employed workers

Employment selection process

NBP follows the following particular steps in recruitment procedure. These are:

 Applications are issued in a prescribed manner against the vacancy published in

newspapers.
 Application forms received are examined and eligible candidates are called for
written test.
 4 kind of subjects are included in written test
o English
o Computer
o General Knowledge
o Mathematics
o Written test carries 250 marks.
 Those candidates who qualify the written test are called for interview.
 Interviews are held at GM office.
 After that the candidates have to experience a medical check up by the prescribed
doctor.
 Appointment letters are issued to those selected candidates, who have to present
themselves before the Head Office for signing the following documents as these
documents are mandatory to sign.
 Service Agreement Bond
 Security Bond
 Bank Secrecy Bond
 Appointed candidates are kept on trial for 9 months. They are sent to the
Staff College for a 9-months pre-service training.

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  NBP observes these things when recruiting employees:
 Team players with excellent interpersonal skills
 Knowledge and use of information technology
 Strong analytical and problem solving skills
 Excellent written and verbal communication skills in English

2 c. Training & development

 Training need assessment
In training need assessment following sources help HR department
 New technology
 Customer complains
 Interview with managers
 Customer satisfaction survey
 Employee complaint
 Company records
 Observation etc
 Self assessments

In 1949, the first year of operations the NBP has one hundred employees one its payroll
but with in two years this number had grown to 1505. By 1960 the figure has risen to
5023.
National Bank of Pakistan trained its staff through a series of training programmed both
for junior officers and clerical staff during the first ten years. It was clear that one thing
more comprehensive was needed and the bank established a staff college Karachi by
1958. Three mote colleges were setup later at Lahore, Islamabad, and Peshawar. These
colleges provide rules regulations, supervisor staff and clerks to meet the Bank’s ever
rising skilled staff. This need jumps not only from the stable grown-up for the bank’s
business but the substitute of wastage due to resignation, retirement, sick physical
condition or passing away also.

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The staff college obtains low-ranking bank officers for more preparation in banking
sector with the course duration from six to nine weeks having 25 students in each course.

The staff college course are planned not only to tell technological instruction, but also
develop traits of decisions, guidance and administration, while these student are expected
to be those persons who may expect to the higher most management roles the bank has to
present.

The bank also employs officers to attend banking tutorial both in Pakistan and out of the
country and it adds immense significance to the flow of thoughts, information and facts
which can be helpfully add to from these get-togethers.

NBP has significant accountability in guarantying that the countryside is fine symbolizes
at gatherings of bankers at home and global stage

Employee development

NBP has an accessible “Human Resource Development” department, which runs to raise
the offered abilities of the people to be had or being a part of the organization with the
aim of attaining its goals in an extra well-organized and valuable manner.

National Bank of Pakistan has two essential training methods.

• It is associated with the training and development of mid term plans, concerning
new customers & middle level staff.
• Training & development for long-standing plans, concerning the job development
of senior level staff.

National Bank of Pakistan implements off-job and on-job policies to educate middle and
higher level its workers. National Bank of Pakistan training & development school
counsels Job rotation to make sure and make easy the creating of all rounder.

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The source of this task verifies the accessibility of the training plan at least 2 months
before the beginning of new coming year, with the aim of making it simple for the
meeting natives and orientation of the new employees.

National Bank of Pakistan has faith in pre-post training test for on hand staff and post
training test for new human resources. The beginners will be required to present back-
home action plan, which will be followed up by the Staff/ JNMDC colleges. These plans
will assist in assessment and end use of session of training.

Performance management”

“When you write things down, you commit to doing them, if you simply say what
you want to do; there is really no commitment to getting it done”

 Performance management is the setting performance standards and

hopes/expectations.

Performance standards give the foundation next to which the person can be efficiently
assessed.

Here are eight (8) situations to think when setting Performance standards:
Standards of performance are:
1. Achievable
2. Let for review and modify
3. understood by the worker when performing job
4. Based on the job and not on the individual doing the job
5. As measurable and specific as possible
6. Should be time-oriented
7. Always in writing
8. Settled by both the supervisor and employee

Furthermore it is about the member of staff’s performance and the responsibility. The
productivity of the organization depends upon the criticism given to the worker.

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Particularly the new coming employee to the business wants to know their work and
work setting. The longer service workers also want constructive feedback on the fine
things they perform. National Bank of Pakistan is an organization where the
administration thinks regarding the staff.

In return, employees will be in state of being an important part of NBP. Human Resource
Development section, all the time, takes chance to assess the performance of human
resources. The appraisal system also helps the management of the NBP to help the
managers with placement, pay, and other HR decisions. The HRD section of the NBP
carries out the appraisal for the following uses;
It allows the employee, the Manager to take necessary about the improvement of the
performance.

The system also assists in promotion, increment in salary of the deserving employees
after their assessment and also gets ready for the next person for the succession plan.

How performance reports are written

• How performance reports are written

PERFORMANCE REPORT—WRITTEN
Employee: _______________
Date Hired: ______________
Job Title: _________________
Salary: __________
Date of Review: ___________

1. PERFORMANCE EVALUATION—INTERACTION WITH CO-

WORKERs_____________________________________________________________
_______________________________________________________________________

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2. PERFORMANCE EVALUATION—PROFESSIONAL
ATTRIBUTES__________________________________________________________
__________________________________ ____________________________________
3. PERFORMANCE EVALUATION—QUALITY OF
WORK_________________________________________________________________
____________________________________ ___________________________________
4. PERFORMANCE EVALUATION—EMPLOYEE
OBLIGATIONS_________________________________________________________
_______________________________________________________________________
5. PERFORMANCE EVALUATION—ADDITIONAL
COMMENT_____________________________________________________________
______________________________________ _________________________________

Date of Next Evaluation: _____________________

Employee Interviewer: _______________________

3 e. Employee compensation & benefits

• Type of compensation & benefits

Compensation means all rewards that an employee receives consequently of their

employment.

Workers of NBP receive benefits and compensation in the form of:

• Benefit: extra monetary compensations, except basic pay, include sick leaves,
holidays, paid vacations, medical allowance.

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 • Non-Financial Rewards: pleasure of work did or a enjoyable running
atmosphere are non-financial incentives

• Pay: Staff receives for performing assigned and designated tasks.

Some other benefits are:

 Travel/Meal/Housing Allowance
 Overtime Pay
 Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes
 Bonuses, Profit Sharing, Merit Pay
 Commissions
 Stock Options
 Base Pay
Detail of some of above is:

Allowances/Bonuses:
Overtime:
This kind of bonus is given on extra time given to organization.
Rs. 2000/- officers and executives
Rs. 1500/- for clerical and non clerical staffs

Salary
100% of basic salary at Eidul -Fitar
100% of basic salary at Eidul –Azhaa
55% of Basic Salary in January

Profit Bonus---- is given according to Basic Salary when profit is declared.

Welfare fund is fixed

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Medical facility:

1. within Ceiling Facility:

Clerical/Non Clerical
156% of Basic Salary
Officers
114% of Basic Salary
Executives
102% of Basic Salary

Following types of bills can be claimed:

Consultancy Bills
Lab Test
Dental test
2. Hospitalization:
Approved by bank
E.g. Gondal Complex, Fazal, Chaudhry
Application is being approved and then whole procedure is started.
3. In excess of Ceiling (prolonged illness)
12 diseases e.g. sugar, hepatitis, cancer
Such patients who have to take medicines monthly and an incentive are given to them in
the form of salary.
Some of them are:
• Cancer
• Asthma
• Sickle cell information
• Tuberculosis
• Hepatitis

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 • Diabetics
• TB
• Aids

NBP offers excellent working conditions, job satisfaction, superior leadership, and a
conductive atmosphere for development, besides a competitive financial package.

Organizational career management

 Employee job changes

Job changes must be made in agreement with the public service rules and policies in the
classified service. Any individual selected or promoted must be skilled as fit in
accordance with and focus to the civil service official procedure. The “state personnel
director” will manage the documentation of each and every promotion & appointment.

 Job changes with the organization

Whenever employee gets a promotion chance in some other organization he/she will
leave the existing organization. For this kind of problem there is solution in the form of
job changes with the organization but there are some rules that he/she can follow.
 Change Management Program: National Bank of Pakistan has started as
determined Change Management Program for additional training of employees to
meet the dares of today necessities.
Following are some forms of Job Changes.

Promotion

Policy of promotion launched in 1979 and its foundation was three parameters. These are:

 time-span of service
 Education/Qualification
 Standard of service

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Separate marks were arranged for all parameter objects, after gaining the lowest
succeeding marks varying from employee to employee; promotion can be given to the
subsequently superior post.

While preparing the “merit based” promotion policy launched in 1999, opinion was given
that separate points should not be given for education/skill and service length or time
span. Simple reason for this was that the minimum qualification setting, as agreed in the
introduction for different levels of chain of command or hierarchy.

The other thought for such kind of visions was, in case the worker has enlarged his
aptitude for better presentation as compared to fellow colleagues, then the said ability
would be mirror on his presentation and this would clearly rate him better than
fellowmen.

Visions concerning the superiority of a member of staff were alike. So in the merit based
policy of 1999, in general, appraisal of an employee was foundation of following.

(a) Points Average gained by the employee in his service during preceding three years,
(b) Points, he would get in an assessment by the promotion or encouragement committee.

The given points by the promotion committee, nevertheless, again abridged the work out
to a automatic process as

 60% points were fixed for qualification, service time span & standard of service
 40% points were given to aim criteria. More improvements in the plans are being
considered.

Transfer

Transfers on request take place only on sympathetic and medical grounds even as
another cause is set off by the bank for meeting its administrative or organizational
necessities that is to fill the available vacancies

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Seniority list is from OG-1 on General Side up to OG-2 T.O on the Cash side had also
added the short of progress of workers from one office to other office. Ultimately all the
workers turn out to be permanently located at their position of job, whether in head office
or the field offices of the Bank. All at once, there was a great deal of movement inside the
division/unit of positioning.

Worker can remain posted in one unit for up to 3 years and in a division for up to 6 years,
yet some offices used to frequently transfer their employees from one unit/division to
another.

Conversely, at the Head Office level, transfers were rare from one department to another.
This had worsened the level of effectiveness together at the head office level and at
countryside offices.
With the purpose of getting staff ready to accept innovative dares, hire fresh talents and
broaden the horizons of knowledge.

The subsequent transfer policy has been structured for all categories of
workers/employees but clerical and non-clerical staff of bank is not included in this
policy.

1. All transfers shall be made by director including the transfer of OG-3,

Administration, and OG-4 & above but with the authorization of the Managing
Director (MD).
2. Employees who are promoted at the post of OG-4 and above shall always be
transferred from the same office/department where they were functioning
previous to their promotion.
3. The list of seniority of all OG-1 officers and above is prepared on all-Pakistan
basis. Though, employees including those employees of cash department shall
remain manageable from one office to another office.
4. An employee transferred from one office to another will be permissible to look
for his posting back to his parent place of work or to the office of his selection

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 subject to managerial ease instantly after completion of 3 years of professional
experience.
5. Chief Manager can not stay at one office for more than 3 years.
6. The lack of employees at an office can be reduced by appointing the interested
employees of the Bank. If no such employees are on hand, the vacancies will be
filled through transfers of employees from the other offices of NBP where surplus
staff is available. Time of such transfers would be for a period of two years to
avoid troubles.

Procedures:
1) Candidates are transferred in the subsequent order.
o Eligible recruits in same department(as the job opening)
o Eligible recruits in other departments(who have requested a
transfer)
o Eligible recruits being considered for discharge(a reduction in
human force)
2) Employees craving for a transfer will have to submit a written request for
transfer to head of department. The employee should recognize the
specific job in which they are paying attention and are interested. The
head of department will forward the request to the Human Resources
Management Department for suggested act.
3) HR Department will decide whether the preferred job or an appropriate
job opening be presents. If a suitable job is available, the Department of
Human Resources will arrange for the employee's application to be
reviewed by the department in which the opening exists.
4) Employees will be permissible for vacation with pay for job interviews
related to transfers.
5) The result to affect the transfer will be prepared by the department head in
which the job opening happens.
6) If employee is transferred to a similar job will be entitled to receive the
same pay rate.

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Demotion

An employee of National Bank of Pakistan may be demoted for disobeying the rules and
regulations of the bank by actions such as extreme unpunctuality, bad behavior, or
carelessness. In some other cases, an employee may be demoted as employee is being out
of work, and National Bank of Pakistan is facing a financial crisis just because of the
non-justice in behavior of employee.

Notice: If an appointing authority unwillingly demotes an employee, then this appointing

authority will have to give an earlier notice in written form explaining the exact reasons
for the demotion of employee.
Conditions to demote any employee:
An employee may be demoted by appointing authority if any one of the following
condition is applicable:
1. The demotion is asked for by the employee and is accepted by the hiring
authority.
2. The employee position has been brought to an ended.
3. Employee is not performing adequately.
4. The employee is put out of place by coming back to duty of another employee
entitled to the position.
5. The position of employee is downwardly reclassified.
6. The employee is demoted by another employee with more superiority during a
decrease in manpower.
7. The employee does not receive an acceptable trial service score.

Separations

Separation of an employee happens when an employee ends being a part of NBP staff.
The speed of separation of workers in National Bank of Pakistan is the determinant of the
speed at which member of staff goes away the bank.
Layoff

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Layoff takes place when there is excess of human resources in NBP. So, layoff is the
short-term suspension or lasting termination of service of an employee or employees’
group for certain reasons, for instance, decision that some positions are no more essential
or a business is slow or disruption in job.
System of National Bank of Pakistan is computerized consequently need of staff in no
more in some departments. This can be a bigger cause of Layoff.

Termination:

Reasons for Termination:

Termination can occur due to many reasons:

 The end of the agreement for which the employee was in employment
 Employee sickness and incapability to do work
 Removal from office.
 Employee Resignation
 Other reasons

Procedure of Termination:
1. Termination by the Employer:

The controller or supervisor must:

a) Provide the required notice in writing to employee.

b) Inform the General Manager (GM) about employee termination with termination
reason.
c) Make sure that the termination will not be unkind, unfair or irrational, and will go on
only when clause 2.8 of Settlement of Disputes, Grievances, Employee counseling and
Disciplinary Action of the Certified Agreement has been distressed.
d) Termination Form should be complete signed. Signatures of employee are not
necessary.

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e) Completed form must be forwarded to Assistant Finance Officer for further course of
action.
f) A copy of the completed form must be placed in the personnel file of employee.

2. Termination by the Employee

Employee has to give a written required notice to supervisor.
 Give the supervisor the required notice in writing.
The Supervisor has to
 acknowledge and admit the resignation
 Inform the General Manager (GM) of in the near future termination of the
employee and cause for termination.
 Complete filling of “Termination Form” and signature are required here.
The signature of employee is required to complete the form as well.
 Forward the completed form to the Assistant Finance Officer for
processing.
 Place a copy of the completed form on the employee’s personnel file.

Resignation
Whenever resignation from is received, , the concerned Branch Manager, Without any
delay, should fill up all columns in the prescribed format up to 13 and forward the same
form to the Zonal Manager through his regulator, in conjunction with the Resignation
letter. Since the administrative power to acknowledge the resignation of the employees
working in branches is the respective “Zonal Manager”, and “Assistant General
Manager” should put forward the format appropriately done to the Zonal Manager.
The following actions must be undertaken when a member of staff resigns from their post
in order to ensure that final salary payments are correct.
→ The Member of Staff must
o Inform to his line manager in written form about his/her intention to resign by
giving the suitable contractual notice time.
→ The Line Manager

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 o Arranges the notice, date of leaving job and verifies annual leaves that are
outstanding with the staff member. Any outstanding annual leave remaining
should be taken prior to say goodbye to the organization whenever possible.
o Takes and forwards resignation in written to Human Resource Management along
with verification of:
 Agreed date of leaving
 yearly leave situation
 notice of leaving the bank or transferring to another branch or branch
 Make sure that the staff member returns data on very last day.
→ HR Office:
• ensures that decided exit date and outstanding holiday claim is
correct
• Accepts resignation letter in written form and sends Management
Accounts File to staff member, CC to Unit Head, Line Manager,
Payroll, Pensions, within 3 working days. Monthly payroll
deadline must be met.
• Enters the date of leaving and leaving reason on “Resource Link”
and ends the documentation.
→ Payroll Office
• Must receive notice from Human Resource Management Department by monthly
payroll closing date.
• Prepares the last salary payment and issues it to leaving member

Retirement
Procedure:
1. Human Resource Management Department notes down the employee CC line manager
direct leaving date.
2. Line manager organizes casual gathering with member of staff to talk about the
procedure and verifies right to ask for continuous working.
3. Line manager writes to member of staff verifying meeting CC to Human Resource
Department

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4. Employee decides to give up work in the form of retirement at the age of 65.
5. Normal retirement process applies.

Labor management relations

There is a harmony among labor and management relations in National Bank of Pakistan.
Both cooperate with one another. Human Resource Management Department takes care
of the opinions of union.

NBP always shows an affectionate and supportive mind-set towards fresh employees and
greets these employees. Society for labor welfare is structured inside National Bank of
Pakistan, which operates with the aid of National Bank of Pakistan. A good affiliation is
formed and it provides;

 Arrange variety shows for the employee’s families

 educational funds or benefits for the employees
 Instant aid to any accident.
 incentives to on the job deceased

Critical analysis:
National Bank of Pakistan is one of the largest banks of Pakistan. Internship at NBP gave
a chance to practically experience a government organizations. in this section , I am
being asked to critically analyze the organizations and relate the theoretical experience
with practical experience, as I read about CRM , organizational culture, etc, at different
stages of MBA in different courses, I found most of the things are not present in NBP.
Absence of some significant factors can harm the organization .these factors are like;
poor customer dealing by bank staff. There is no discipline in organization. Staff is not
punctual. most of the staff members come late than on time. Customers have to wait for
them. they can be a situation a customer is in emergency, when he comes into the bank,

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staff is not on his desk, ultimately a bad word of mouth for bank by customers. If any one
comes late in office, HR Manager points him /her out, and takes necessary action but no
one gives importance or listens the HR Manager. HR Manager of NBP regulates the
employees to come in time and their own work, as major part of the work is done by
those internees who have been trained by them. This is illegal to get the work done by
internees. Staff is careless. Staff training is needed to teach them how to deal efficiently
with customers especially with old aged customers. no facility is given to the old aged
customers. NBP can get a competitive edge by providing facilities to old aged customers
like sitting facility, giving them respect, deal humbly, giving priority to such customers
can feel them they are worthy. Ultimately this can give rise in goodwill of the bank. as
most of the employees are old aged, they resist to change. Such staff members are not
mentally prepared to adopt new technologies to fill the gap. Some staff members are still
not happy to convert the paper pencil or offline mode of work to online mode. No proper
facility to accommodate the customers and no proper information desk which can provide
information to the customers. Reputation of bank is very poor in the minds of customers.
Communication among staff members is illicit, even staff usually use to call each other
by abusing. No proper check and balance on employees discipline. There is a lack of
motivation in the bank. Motivational scale is low to bring innovation in the bank. HR
Manager is educated enough to perform his\her duties but somehow, somewhere, he is
unable to control the whole situation as this can be done only when cooperation from
both sides. Here cooperation from the staff side is missing. They don’t want to change the
current scenario. Alone HR Manager can not do any thing. Internees are not entertained
well. HR Manager is not able to answers of internees. Staff does not give any importance
to internees.

SWOT analysis:
According to my observation, Following are some Strengths, weaknesses, Opportunities
and Threats for NBP.
Strengths:
1. Zonal Branch:
NBP, Civil Lines is a zonal branch; it deals with all small branches of NBP. It is head
office in Gujranwala. If any branch meets with any problem, it handles it.

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 2. State bank Agent:
Wherever state bank of Pakistan does not have its own branch, National Bank of Pakistan
serves as agent of State Bank and perform its functions on behalf of state bank of
Pakistan.
3. Maximizing Shares Holder's wealth:
Shares holder's wealth is maximizing in NBP and in safe hands.
4. hire Qualified Workers
NBP civil lines branch has now more qualified employees who can compete in with the
requirements of today.

5. Government Based Bank

National Bank of Pakistan is purely nationalized sector. It has full support of government.

6. Well defined Policies and Objectives

Policies are well defined to all employees. Each and every employee knows the
organizational strategy, goal and mission.

7. Dress code
Dress code in NBP is strictly followed. Each employee is in his particular dress defined
by organization like pent court for Officers and if some one wants to wear “shalwar
qameez”, he has to wear “waskoot” also.

8. Pension Distribution:
Only NBP civil lines branch distributes pension to pension holders

9. ATM
ATM facility is 24 hours available.

10. Western Union:

Western Union branch is been opened in civil line branch, Faster and secured transfer of
funds is possible now through western union.

11. Lockers
Facility of lockers is available at this branch, people can keep their documents and
jewelry safe and secured.

Weaknesses
1. Poor Discipline/Punctuality
It is the major factor of that can harm the organization in achieving goals is that the
discipline level in branch is very poor. Employees are not punctual. Customers have to
wait for their arrival so that particular procedure can be started.

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 2. Poor Dealing
Employees rudely behave with customers and with each other as well.

3. Lesser number of employees

Another factor which can become hurdle in the way of success is that number of
employees in civil line branch is very low. Most of the work is done by internees in the
branch.

4. Nepotism
Too much preferential treatment is there in civil line branch. There is too much
discrimination by manager and employees.
5. Compliant Box is not safe:
If customer gives any suggestion or does complaint about any employee, top
management can not know anything about it because complaint chits have been removed
from complaint box by some of staff members. Here, management is unable to get
feedback for further improvements.
6. Security Cameras are good for nothing
No benefit is got from security cameras. Cameras are old version and have used more
than enough
7. Critical Process
There is a critical procedure for some tasks like for loan, and for account opening. This
procedure is long as well. Sometimes customers are asked to give some personal
information which they tell with some hesitation.

8. Information Desk
Information Desk is missing in civil line branch. This results in wastage of time and
frustration of customers.

9. Ambiguity in Assessment Procedure

Assessment procedure is with fill of ambiguities. Some employees appraise own selves
by their own choice of rank.

Opportunities

1. Improved Hiring Policy

NBP can have improved policy of hiring employees.

2. Training and Development of employees

Training and development is a good opportunity to get a competitive edge.

3. Foreign Exchange:
A good opportunity in the form of foreign exchange for civil line branch of NBP in
Gujranwala because Gujranwala is an industrial city and huge import and export is done
in this region by its people. This can be a good source to earn foreign exchange

4. Deposit Mobilizations:

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Whole world is in economic crisis. Major Banks are becoming insolvent. Here it’s a good
opportunity for civil line branch of NBP to introduce such products which are deposit
mobilization and do not lesser the current liquidity.

5. EEO
Equal Employment Opportunity is a big opportunity available in market to gather
competent employees whether men or women.

Threats:

1. Rivalry among competing Banks:

It lays stress on rivalry of competing banks. Here NBP has to see how to compete with
other banks and to what entrance extent as well.

2. Threat of new:
Entrance of any other bank in market can become a threat on transacting in the market.

3. Potential Development of substitute Products:

Other banks are offering the same product as substitute of NBP products

4. Political Influence:
Politics is too much involved in NBP. Influential political personalities force bank
management to select employees of their choice and bank has to agree with them as such
personalities have huge bank balance with bank

5. Political Instability:
Political Instability of country is another major threat to NBP.

6. Lower interest rates offered by other banks:

This is a threat when other banks offer lower interest rates than the interest rates offered
by NBP like interest on loan, extra higher service charges.

Conclusion:
One of the largest online banks in Pakistan is National Bank of Pakistan. It works
according to rules and regulations set by State Bank of Pakistan. If I say, future of overall
National Bank of Pakistan is bright, it will not be wrong. But when talking about civil
line branch of NBP in Gujranwala, my point of view is totally changed. In my opinion,
the future of civil lines branch is in danger. Poor customer relationship management, poor

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customer dealing, poor discipline are some factors which can harm the branch at macro
level and can become a major cause in the fall of civil lines branch in near future. But if
branch overcomes its weakness by utilizing its strength and opportunity available in
market, then it is a support to the drowning boat of civil line branch of NBP in
Gujranwala. This is the only way by which threats can be avoided. HR department has
become helpless due to rigid and non changing behavior of Employees. Old employees
do not want change actually. Civil line branch is the zonal branch which deals with all
small branches in Gujranwala region, if any branch faces any problem; civil line branch
handles it as it is the head office in Gujranwala. Paper work of NBP is awesome, but
latest technology is as important as to survive in the market and to be in competition. If
NBP in Gujranwala covers all its weaknesses, and takes opportunities at right time, surely
it can be on the way of progress InshaAllah and will contribute in overall progress of
NBP at national level and as well as at international level.

Recommendations:

1. Regulatory authority is highly needed concerning the disciplinary matters.

2. A committee of senior qualified expert staff should be physically present at bank
to receive complains by customers and catch the guilty person red handed.
3. Complain box should be such that no one can bring the compliant papers out of
box.
4. As only head office deals the pension, so this branch should provide facilities to
specially old aged pension holders to increase its good will.
5. Security cameras should be technically alright and latest.
6. Branch must review its strategy whenever any new entrance in market is visible
and whenever any product comes in market as substitute product of the products
of NBP.
7. NBP should introduce deposit mobilization products.
8. A check and balance should be imposed on all employees
9. A handsome amount of fine should be charge to the guilty employees.

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10. training session should be held at different intervals in a financial year to make
employees more competent and get a competitive edge overall
11. Rules and regulations should be applied to all employees even to the top
management in any way.
12. Account opening, loan issuing and some other procedures should be more
convenient and flexible.
13. Make sure tat all employees follow rules and regulations.
14. Any strategy implied for the over all benefit of organization should be accepted
by every one, no one should have any objection on it.
15. Appraisal should be fair, transparent, and secured.
16. Separate information desk must be established in bank to facilitate the customers.
17. Prompt reply to the queries of the customers.
18. Favoritism and nepotism should be strictly dealt. Any employee whether of lower
rank or upper rank found involved in favoritism and nepotism should be removed
on the spot.
19. A separate investigation team should be formed to investigate the market
situations and keep the working be up to date.
20. New qualified and competent employee must be hired to fill the gap.
21. All branches of NBP should be online for customer convenience and for best link
among all its branches.
22. Bank mangers should not encourage the influence of customers with huge bank
balance
23. Higher authority should be free from any influence and pressure by politicians
24. All branches should deal foreign exchange.
25. Internal audit should be held and executed fairly.

26. External audit is of tremendous importance. It should also be held fairly.

27. Differential products should be introduced by NBP.

28. Marketing Strategy should be improved.

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 29. facilitation should be provided to civil line branch.

Reference & Sources used

HR manager Ghulam Abbas

Manager assistant zeeshan

National bank web site www.nbp.com.pk

Orientation books of NBP

www.scribd.com

www.wikipedia.com

VU course books

Conflict management

Human relations

Organizational development

And customers of NBP

Annexes

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 Commission charges of ATM

Sr. A/c Amoun Commissi Postag Net

No. No t on FED e Total Amount
1 50.00 3.00 75.00 128.00 128.00
2 50.00 3.00 75.00 128.00 128.00
3 50.00 3.00 75.00 128.00 128.00
4 50.00 3.00 75.00 128.00 128.00
5 50.00 3.00 75.00 128.00 128.00
6 50.00 3.00 75.00 128.00 128.00
7 50.00 3.00 75.00 128.00 128.00
0.00
TOTA 21.0 896.0
L 0.00 350.00 0 525.00 0 896.00

109