Vision statement: To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best

practices and social responsibility.

MISSION STATEMENT OF NATIONAL BANK OF PAKISTAN

To be recognized in the market place by Institutionalizing a merit & performance culture, creating a powerful & distinctive brand identity, Achieving top-tier financial Performance, and Adopting &

living out our core values

NBP will aspire to the values that make NBP truly the Nations Bank, by: Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices Maximizing stakeholders value Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate

Contact Us

Address National Bank of Pakistan Head Office NBP Building, I.I. Chundrigar Road Karachi, Pakistan. Your Enquires and Feedback Telephone Number Phone: +92 -21- 99220100 (30 lines) Phone: +92 -21- 99062000 (60 lines) NBP Call Center
111-NBP-NBP (111-627-627) Corporate Communication Division For Media and Press Related Queries: Contact : (021) 99220734 Syed Ibne Hassan (VP/Divisional Head(A)):ibne.hassan@nbp.com.pk, For Investors and Share holders
MUSTAF MIAN QADRI, OFFICER GRADE-I, SHARES DEPARTMENT, OFFICE OF THE SECRETARY BOARD OF DIRECTORS, NATIONAL BANK OF PAKISTAN HEAD OFFICE, KARACHI. PH: 021-99220858 PABX: 021-99212100-50(LINES) EXT: 2305

FaX:021-99220239

ROLE OF NATIONAL BANK OF PAKISTAN IN ECONOMICDEVELOPMENT

Banks play significant role in promoting the economic activities a n d e c o n o m i c d e v e l o p m e n t o f a c o u n t r y . I n d u s t r y, a g r i c u l t u r e , t r a d e , c o m m e r c e a n d m a n y o t h e r economic activities are highly dependant on banks. Banks help in mobilization of money.T h e y also help in promoting the growth of internal resources for d e v e l o p m e n t b ya t t r a c t i n g d e p o s i t s i n t o p r o d u c t i v e l o a n a n d i n v e s t m e n t . Banks not only collects thesavings of the people but also give loans for t h e d e v e l o p m e n t o f i n d u s t r y, t r a d e a n d commerce. NBP has been playing a major role in financing and developmental activities in Pakistan.It helps in the growth of economy in all spheres of our national life. It has contributedsignificantly to economic growth of the country and has served to trade and industry in awide sphere of operations.The NBP was the first bank to introduce scheme of credit to small borrowers like farmerse t c , f o r t h e p r o m o t i o n o f a g r i c u l t u r e . T h e b a n k a d v a n c e s l i b e r a l c r e d i t f o r r u r a l a n d agricultural development. Small short-term loans are given to the farmers free of interest.These advances can be in the shape of fertilizers, seeds and agricultural implements.The NBP is able to attract large amount of deposits through its large number of branchesall over the country and thus is able to provide large amount of loans to different sectors.The NBP is also providing finances to small-scale industries for the period up to fiveyears; it has introduced the peoples credit facilities to the common man at the large andm o r e l i b e r a l s c a l e t h a n b e f o r e . T h e m a i n o b j e c t i v e o f t h i s s c h e m e i s t o m a k e a contribution toward building up of a developing nation. The NBP also helps to promotet h e e s t a b l i s h m e n t o f n e w c o m p a n i e s b y u n d e r w r i t i n g t h e i r s h a r e s . T h e b a n k a l s o contributes towards the earning of foreign exchange though its foreign exchange businessin Pakistan and abroad.

Organizational Structure of National Bank of Pakistan

After the elimination of Pakistan Banking Council, each bank was p u t u n d e r t h e supervision of an independent board of directors. Since the new organizational structureof the bank, National Bank of Pakistan constitutes a board of directors and an executive committee as the governing bodies. The Head office is operationally in charge of centralaffairs

including the delegation of powers and authority to 9 Regional Headquarters allo v e r t h e c o u n t r y. T h e s e R e g i o n a l H e a d q u a r t e r s d i r e c t t h e f u n c t i o n s o f t h e 4 0 Z o n a l Offices and 12 Corporate Branches. The Head Office has 9 divisions that are further divided into wings.Board of Directors nominates the members of the executive committee and executivecommittee nominates divisional Heads.

ORGANIZATIONAL CHART OF NBP HEAD OFFICE

Head Office of the National Bank of Pakistan is situated at Karachi, the industrial capitalof Pakistan, from where it controls all the affairs of the bank. The President of the bank c h a i r s Head Office. A secretariat is also working at the Head Office level for t h e assistance of the president. The secretariat includes one Senior Executive Vice Presidentas Advisor to the president.H e a d O f f i c e i s r a t h e r a b i g b o d y w i t h a h u g e t a s k . F o r smooth functioning of thesematters, the whole head office is divided into t w e l v e D e p a r t m e n t s & G r o u p s . E a c h Department or group is under the control of a Senior Executive Vice President and GroupChief. These group or departments are as under:1 . O p e r a t i o n G r o u p 2 . T r e a s u r y M a n a g e m e n t G r o u p 3.Commercial and Retail Banking Group4 . A u d i t a n d I n s p e c t i o n Group 5.Special Asset Management Group6 . F i n a n c e G r o u p 7.Corporate and Investment Banking Group8 . H R M a n a g e m e n t D e p a r t m e n t 9.Organizational Development and Training Department10.Strategic Planning and Economic Research Group11.Risk Management Group12.IT Planning, development and implementation Group

BOARD OF DIRECTORS
The Board of Directors nominates the executive committee, which nominates divisionalheads. It consists of president, six directors working under president and one Secretary.President is the governing body and other six directors and one Secretary Work with himin a systematic way.The Board of Directors of National Bank of Pakistan NBP has one President and six members as given below: The members of the Board of Directors of National Bank of Pakistan are as follows: 1 . Q a m a r H u s s a i n Chairman & President(on acting charge basis) 2 . M r . T a r i q K i r m a n i (Director) 3 . M r s . H a n i y a S h a h i d N a s e e m (Director) 4 . M s . N a z r a t B a s h i r (Director) 5 . M r . E k h l a q A h m e d (Secretary Board of Directors)

Voting Rights
Upon a show of hands every member present in person shall have one vote upon a pollevery member present or by proxy shall have one vote for every ten shares held by him,s u b j e c t t o a m a x i m u m o f t e n v o t e s . T h e F e d e r a l G o v e r n m e n t a s a s h a r e h o l d e r m a y appoint any person to be present at any General Meeting and to vote on its behalf.Provided that subject to any exemption granted by the federal Government under section9 3 o f t h e B a n k i n g C o m p a n i e s O r d i n a n c e ( B C O ) 1 9 6 2 , t h e v o t i n g r i g h t s o f a n y o n e shareholder shall not exceed 5% of the total voting rights of all shareholders of the bank. The shareholders do not have the right elect or remove Directors of the Bank, being the right ordinarily available to the shareholders of the companies registered u n d e r t h e provisions of the Companies Ordinance, 1984.

EXECUTIVE COMMITTEE
Executive Committee consists of one President and nine members and among these nine members, one member perform functi ons of both mem ber and Secret ary. B oard of Directors nominates executive committee and executive committee n o m i n a t e s t h e divisional heads. NBP has an executive committee with President as its chairman; five SEVPs are its members and presidents advisor as an observer. This body monitors the d a y - t o - d a y a f f a i r s o f t h e e n t i r e b a n k a n d h a s s a n c t i o n i n g a u t h o r i t y f o r f i n a n c i a l a n d business proposals.

C H I E F

E X E C U T I V E

In the administrative hierarchy, President is at the apex. Meetings of Executive Board are presided over by him. So he is responsible for management of the whole of the bank.

WORK DONE BY ME DURING INTERNSHIP

I have completed my practical training in NBP Thana branch Malakand (1842). For twomonths of the period of my training, I tried my best to study different things but it wasdifficult to done complete work in respect of all aspect of banking in all the departmentsd u r i n g t h e p e r i o d o f 2 m o n t h s i n t e r n s h i p t r a i n i n g . H o w e v e r , I t r i e d t o d e a l i n a l l t h e departments for the sake of practical knowledge.Major activities performed during my internship program are as follows:

1st week
In the fist week I obtained general information regarding bank. I studied about cheques,the general for filling checque and obtain different information about checque. I also b e c a m e t o k n o w a b o u t t h e d o r m a n t a n d i n o p e r a t i v e a c c o u n t . H o w a c c o u n t s b e c o m e dormant or inoperative.I also studied about different vouchers i.e. debt voucher, credit voucher, cash voucher, Transfer voucher etc.

2nd week
In this week I learned about SC (Short Credit), how it is originated.

3rd week
In this week I learned bout SC responding, how it is realized. There are different chargesi.e. PNT charges, FED charges and commission charges. After deduction of these chargesthe remaining money is transferred to the costumer account.

4th week
In this week I work in account opening department. In this department, I g a i n t h e practical knowledge about opening account. This department deals with opening andclosing of accounts for its customers and all matters regarding thereof. I studied differentrules and regulation regarding opening of account. I also learn that, what are the initialrequirements for opening an account in NBP?

5th week
In this week I learned about Draft, how is prepared. I also studied about payment order.

6th week
In this account week I learned about MT (Mail Transfer). I studied about all the rules andwork practically on it

FINANCIAL ANALYSI S INTRODUCTION TO FINANCIAL ANALYSIS

Financial analysis is the process of identifying the financial strengths and weakness of thefirm by properly establishing relation ship between the items of balance sheet and profitand loss account, in order to make rational decision in keeping with the objective of theo r g a n i z a t i o n , f o r t h a t p u r p o s e t h e m a n a g e m e n t u s e a n a l y t i c a l t o o l s . T o e v a l u a t e t h e financial condition and performance of the business entity, the financial analyst needs to perform "checkups" on various aspects of the business financial health.Financial analysis, though varying according to the particular interests of the analyst,always involves the use of various financial statements primarily the balance sheet andi n c o m e s t a t e m e n t . T h e b a l a n c e s h e e t s u m m a r i z e s t h e a s s e t s , l i a b i l i t i e s , a n d o w n e r s equity of a business at a point in time, and the income statement summarizes revenuesa n d e x p e n s e s o f t h e o v e r a p a r t i c u l a r p e r i o d o f t i m e . A c o n c e p t u a l f r a m e w o r k f o r financial analysis provides the analyst with an interlocking means for structuring thefinancing.

RATIOS ANALYSIS
To evaluate the financial condition and performance of the business entity, the financialanalyst needs to perform "checkups" on various aspects of the business financial health.A tools frequently used during these checkups is a financial ratio analysis, which relatest w o p i e c e o f financial data by dividing one quantity by the other we calculate ratios because in this way we get a comparison that may prove more u s e f u l t h a n t h e r a w number by themselves.

LIQUIDITY RATIO
Current ratio This ratio is obtained by dividing current assets / liabilities Current assets X 100 Current liabilities PROFITABILITY RATIO Gross profit margin This ratio is percentage of sales dollar left after subtracting the cost of good sold from netsale. Gross profit X 100 Sale O p e r a t i n g p r o f i t m a r g i n

This ratio is percentage of sales dollar left after subtracting the cost of good sold from netsale and all operating expenses from net sale. This ratio measures the percentage of saledollars remaining after paying all operating expenses EBIT X 100 Sale

Net profit margin

In this case the higher the ratio, it would be better for organization. If there is problem in Net profit margin it means interest and taxes are more, so organization should control it. EBT X 100 Sale Return on asset

This ratio shows the efficiency of organization that how efficiently utilizes their assets.This ratio relates profits to assets. E B T _ _ _ Total assets Return on equity This ratio shows the profit attributable to the amount invested by the o w n e r s o f t h e business. It also shows potential investors into the business what they might hope to receive as a return. ____EBT____ X 100 Equity holder fund LEVERAGED RATIOS Debt to yotal assets: This ratio shows that to which extent the organization assets are financed by debit. It iscalculated as. Total debts__ X 100 Total assets X 1 0 0

Debt to total equity:

This ration shows the amount contributed by creditors and shareholders. It shows to whatextent the firm is using borrowed money Total debts Total equity Proprietor ratio Share holder equity X 100 Total assets Efficiency ratio Current asset turnover:

This ratio measures the efficiency in asset management Sales__ X 100 Current asset Fixed asset turnover Sale_ X 100 Fixed asset Total asset turnover This ratio indicates that how efficiently the total assets are utilized by the business. Sale x100 Total assets

SWOT ANALYSIS OF NBP SWOT Analysis

Strengths Western union facility: National Bank of Pakistan is only one bank which has the facility of Western union. In this particular scheme money is transfer in Pakistanfrom abroad. This is the fastest way to money transfer. You can receivethe money from bank to see the name and password of particular client. ATM finder: There is also strength of NBP that they are found the ATM. They nowprovide this facility to the customers. Governments bank: In commercial banking system NBP is only the government bank. Theymake their policies according to the governments rules and regulations.It enjoys its position in the market of banking system in Pakistan.Government of Pakistan also facilitating the National Bank of Pakistan. Customer satisfaction: Because of governments bank, it is enjoying the customers satisfaction.Customers feels secure their money in NBP. Online banking: There is also strength of NBP that 130 branches are online. It helps thespeedy services giving to the customers. There is also help in checkingthe balances and daily transactions just at one key press. Employees loyalty:

Employees are very much loyal to NBP. Employees turnover is verylow in NBP. Very few employees are leaving the jobs in NBP. So it isvery big strength that your employees are loyal to your organization. Wide area of services: