Muhammad Jahanzaib (11022720-028) MBA Internship Report National Bank of Pakistan

AN INTERNSHIP REPORT ON [National Bank of Pakistan Chowk Bhalowali Sialkot]
Internship Report Submitted to Faculty of Management and Administrative Sciences in Partial Fulfillment of Requirements for the Degree of Masters of Business Administration
Submitted By:
Muhammad Jahanzaib (Ms Scholar) Roll No. 11022720-028 MBA (3.5Year) Finance Session (2011-2015)
UNIVERSITY OF GUJRAT
Date of Submission 23/01/2013
Name of Program Coordinator: Miss Tuba jawed Signature of Program Coordinator: ____________________
Muhammad Jahanzaib Roll No.11022720-028
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1. Dedication
I dedicate to my dear Parents, Bank staff member, University Of Gujrat and my respectable Teachers whose guidance is always with me.
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2. Acknowledgement
First problem that every student faces is the selection of a organization for internship. I am thankful to my friend Mr. Luqman Ahmed for helping me out in time of confusion. I am thankful to UOG for giving me this opportunity. During our course I had a real chance to learn from his vast experience and immense knowledge. I would like to thank all those persons who helped me in completing my project work. I am thankful to one of my friend Mr. Ansar Adnan for his cooperative attitude during the completion of my report. I am very thankful to staff members. I am thankful to the Bank Manager, Ch. Mumtaz Ahmed bhalowali Branch Sialkot. He guides me during my internship from july1st to Aug31st 2012. Finally I am thankful to the most merciful and Almighty Allah who gives me the strength that I fulfill my task with efficiently.
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3. Table of Content
Serial No. Description Title Page Internship Certificate Dedication Acknowledgement Table of Contents Executive Summary Introduction, overview and structure of organization Brief Introduction of The organization Business sector What is Bank Overview of the Organization Brief history Evolution of Banking in Indo-Pak Sub-Continent First Phase (1947-1974) Commercial Banking in Pakistan Second Phase (1974-1979) Nationalization of Banks
Causes of Nationalization
Page No.
1 2 3 4 5 5.1
5.2 5.2.1
5.2.1.1
5.2.1.2

5.2.1.3
5.2.1.4

5.2.1.5

5.2.2 5.2.3

5.2.4 5.2.4.1
Result of Nationalization Third Phase (1979-1991) Introduction of Islamic Banking Fourth Phase (1991-2000) Privatization and De-regulation Present status and history Vision & Mission Statement NBP vision Statement NBP mission Statement Branches Network Nature of the organization Business volume, reward honors & success Stories Business volume Reward honors & success stories Products and services Products NBP Advance Salary Cash card NBP Cash & Gold
2 3 4 8 9 9 9 11 11 11 11 11 12 12 13 13 14 14 14 14 15 17 17 17 17 17 18 18 18 20 21 21 21 22
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5.2.4.2

5.2.5 5.2.5.1 5.2.5.2 5.2.5.3 5.2.5.3 5.2.6 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.4.1 5.3.4.2 5.3.4.3 5.3.4.4 5.3.4.5 5.3.4.6 5.3.4.7 5.3.4.8 5.3.5 5.4 5.4.1
NBP Premium Saver NBP online AASAN Banking NBP saibaan Home Purchase (House or Apartment) Home Construction Home Renovation Purchase of Land and for Construction thereon Re-Financing (Balance Transfer Facility (BTF)) Services Demand Draft WIFT System Letters of Credit Cheques Payment Order Mail Transfer Foreign Remittances Short Term Investments PEST Analysis Political (Includes legal &Regulatory) Economic Social Technological Role of NBP in economic development Organizational Structure No. of Employees National Bank of Pakistan, Head Office Hierarchy of NBP Introduction of all Department Cash Department Clearance Department Advance Department Remittance Department Deposit Department Account Opening Department: Credit Department Government Department Comments on the organization structure WORK DONE BY ME Branch Introduction Branch Profile Branch Hierarchy Starting and Ending Date of Internship
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22 22 23 23 23 23 23 23 24 24 24 24 24 25 25 25 25 26 26 26 27 27 27 28 29 29 29 30 30 30 31 32 32 32 33 33 34 35 35 35 35 36
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5.4.2 5.4.3 5.4.4 5.4.4.1 5.4.4.2 5.4.4.3 5.4.4.4 5.4.4.5 5.4.4.6 5.4.4.7 5.4.4.8 5.4.5 5.5.6 5.4.6.1 5.4.6.2 5.4.6.3 5.4.6.4 6 6.1 6.2 6.3
Supervisor Weekly time Table Detailed Description of the Department in Which work Account opening department Current Account Saving Account Fixed Account Precautions necessary to open an account How to open an Account Procedure to open an account Documents to be attached Issuance of cheque book Payment of cheque Cheque cancellation How to close to Account Advance Department Loan against gold Procedure for advance loan Government Department Pension payment Documents required Payment of Pension Remittance Department Demand Draft payment Order Online transfer Money Clearance Department In-word clearing Book Out-word clearing Book Computer department Foreign Remittance Payment of western union Payment of E-Remittance utility bills collection Describe detail of the tasks entrusted me Summary of learning Skill and qualification gained from training What kind of responsibility assign me Internship will influence your future career Internship activities and class room knowledge Conclusion of the report Summary of training experience Observation about NPB SWOT analysis
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36 36 39 39 40 40 41 41 42 42 43 45 45 46 46 46 47 47 48 48 49 49 49 50 50 51 52 52 52 53 53 53 53 54 55 55 56 57 57 58 58 59 59
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6.3.1 6.3.2 6.3.3 6.3,4 7 8
Strength Weaknesses Opportunities Threats Recommendations References
59 60 60 61 61 62
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4. Executive Summary
In order to interpret my knowledge and working skills, I have performed 8 weak Internship at National Bank of Pakistan, Bhalowali branch Sialkot. The objective of the internship was to explore the issues related to finance and the implementation of financial terms, which I learnt from my course books. In this report, I have given a very brief review of what I have seen and felt during my Internship in Loan department, cash clearing account and customer service I have mentioned all of my active and passive learning in my Internship report. During my internship, I conclude the strengths of the organization as good dynamic Environment, online banking, automatic operation and large deposit. According to my observation during internship the NBP maintains an excellent position in banking sectors in Pakistan and this is based on the overall performance of National Bank of Pakistan. The objective of this Internship was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of National Bank of Pakistan. According to my knowledge there are much possible perfections, which we can make positive changes in the system of NBP in coming years. Furthermore, I have discussed about my learning skills and capabilities in the whole tenure that is all about the Operation activities banking Terminologies and working activities of Finance Department. I have made it possible to write each and every thing that I have learnt over there. I have all my practical efforts in the form of these documents thats the asset for my future career. In this report the detailed analysis of the organization has been done and the financial, technical, managerial and strategic aspects have been evaluated to analyze the current position of the organization. All the information in this report is based upon my observation, interviews and practical involvement in different tasks during my internship at NBP.
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5. INTRODUCTION, OVERVIEW OF ORGANIZATION AND ORGANIZATION STRUCTERE 5.1 Brief introduction of the organization
It is an uphill task to trace the origin of word bank. Some people think that banco is the origin of bank. Banco means a bench. The early bankers had done their business on the benches in Lombardy-Italy. There are others who say that back is the origin of it. It is a German word and means a joint stock fund. There is no record for checking the correct opinion. We can say
The Bank is a man who lends you an umbrella when the weather is fair and takes
it away when it rains.
What is Bank
A bank is an institution for the custody, loan or exchange of money for sanctioning credit, for transferring funds by domestic foreign bills of exchange. It is a pipeline through which currency moves into and out of circulation. As it is clear from the definition of banking, the main activity or function of banking is borrowing and lending of money with a margin of gain. However, as far as the present day banking is concerned, there are a number of different banks, set up under specific different objectives, performing various functions.
According to KINELY
A banker is an institution which receives deposits and advances loans.
According to GILBERT
A banker is a dealer in capital or more properly a dealer in money. He is an intermediary party between the borrower and the lender.
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According to CROWTHER
A bank collects money from those who have it spare or who are saving it out of their incomes. It lends money to those who require it.
According to COULBARN
Banks are a variety of firms for the safe keeping of money and to granting and transferring of credit. The national bank of Pakistan was established in 9 th November 1949 under the ordinance XIX. The NBP commenced its operations from 20 th Nov 1949. The Bank was incorporated under the National Bank of Pakistan Ordinance 1949 and is listed there Pakistani stock exchanges. The bank controls treasury dealings for the Government of Pakistan as a representative to the State Bank of Pakistan. NBP offers a commercial banking and interrelated services in Pakistan as well as outside of Pakistan. The business sector of NBP is banking sector and the banks plays a vital role in an economy of country NBP also played an important role NBP also provide banking or financial services in Pakistan bank plays a major part in economy now a days the current economic crisis in united and Europe as well as Pakistan as we see day by day downsizing and is because the ongoing weakness of major bank and the result of all this is credit and capital crush so we can say its prove from history that the banking sector is plays a very vital role in national and global economy. Banks play an important role in the economic life of the nation. The growth of the economy depends on the strength of its banking system. Although banks create no new wealth, but borrowed, exchange and consumption. This makes the generation of wealth. This becomes more effective partner in the development of this country. Encouraging the savings habit and to mobilize these savings is the main objective. Banks deposit surplus years and then progress these surpluses as loans to entrepreneurs, farmers, entrepreneurs and unemployed under different plans to establish his own business. Banks to help capital formation If banks were not, there would be no concentration of
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wealth in the hands of a small number of people and a lot of the country's wealth would be idle. Developing countries low savings rate too low and because of this, the investment rate and the growth rate is also very low, and we can take such World Heart in the economic structure and the capital contributed by it is like blood in it. While blood is circulating, and stay healthy bodies in shape, Whether provide no blood at the time provided no member will be useless, Even if funding was provided for the purposes of agriculture or industry, and destroy them. Credit line granted by the bank an incentive to the banks of the producers to continue to increase production. Offer easy payment convey, which is cheaper, faster and safer. Overcome many of the difficulties of international payments and increase the volume of transactions and. is one very useful utility for the development of trade and commerce.
5.2
Overview of the Organization
5.2.1 Brief History

Evolution of Banking in Indo-Pak Sub-Continent
Indian society was quite familiar with the bank, right at the beginning. There is also sufficient evidence to show that the people during the fifth century were accustomed to the use of hunting dogs as an investment loan, And whenever people loans against securities and other personal ornaments and goods and other property.
5.2.1.1 First Phase (1947-1974) Commercial Banking in Pakistan

Establishment of Commercial Banking System There were 19 non-indigenous foreign banks in Mexico at the time of independence of the state branch network of small, policies, processes and controlled by parent companies abroad. These banks allocated exclusively to the export of agricultural products from Pakistan. There were only two banks in Pakistan at the time of partition, Habib Bank, which moved its headquarters Bombay to Karachi after the announcement of the section, and the Bank
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of Australia, which operates in Pakistani territory by June 1947. Pakistani government sought to eliminate banking crises. Close Imperial Bank of India most of its offices in Pakistan, who was working as an agent of the Reserve Bank of India was not ready to buy a token amounts of government to Pakistan. Values on appeal, that these values are not negotiable.
5.2.1.2 Second Phase (1974-1979) Nationalization of Banks

Banking reforms proved to be a transitional step, temporary and only after 18 months, the government nationalized the banking system. Thus, through the nationalization of banks in 1974, and PAS all listed commercial banks in Pakistan and conduct business within or outside the country is still under state ownership since January 1974. The transfer of ownership and management of all banks in Pakistan and is located on the federal government. Shareholders received compensation in the form of bonds to recover the federal government on an equal footing with any time during the term of fifteen years. The amount of compensation equal to the value of a fraction of the shares in the case of commercial banks, PAS shares the amount of compensation is calculated based on the average price for compensation during the 6 days before nationalization. Removed President, President and Chief Executive Officer of several banks other than those specified by the federal government and the State Bank. Central Council has been resolved to the banks, management committees and similar bodies. The bank was established by the Pakistani nationalized commercial banks to coordinate their activities. As a result of merger of banks the following five major banking companies were formed: National Bank of Pakistan Habib Bank Limited United Bank Limited Muslim Commercial Bank Limited
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Allied Bank of Pakistan Ltd
CAUSES OF NATIONALIZATION
The nationalization of banks may be justified on the following grounds: Large commercial and industrial houses dominate the lending policies of commercial banks, which carried out the problem of the concentration of wealth. And guided by the commercial banking operations by the profit motive and as a result, the underdeveloped regions and small business have never been his clients favorite. Run banks, in contrast to business, and direct participation in the national economy. For example, if the banks raise the cost of credit, can the cost of everything rises.
Result of Nationalization
Though there are doubts about the positive results of the nationalization, but we can say that the nationalization of banks to provide professional management efficiency to expand banking services in every corner of the country. Banks full focus their lending policies in priority sectors and the national construction projects, and activities that encourage non-productive and unhealthy speculation and monopoly; there was also an increase in the number of overseas branches of Pakistani banks.The Pakistani banking system was significant growth. Expansion of banking services in rural areas. Increase in bank credit to a large extent, especially in the public sector. Part of this expansion in the banking credit system seeks the goals set by the credit of the National Advisory Council (NCCC) and establishes priorities for this year to increase the flow of bank credit to small and all agricultural exports. And bank deposits increased to a very large extent during period when total assets increased cash also sharply.
5.2.1.3 Third Phase (1979-1991)

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Introduction of Islamic Banking

In 1977, that overthrew Bhutto. The martial law government plans to reform the banking sector in a new way. The Public Policy in Islam economy and the banking system, which is based on the interest, was an important objective of the new policy and the most preferred form of profit and loss sharing bank financing Islamic banks to accept deposits without warranty of any response. Islamic Bank has to get a high degree of confidence gives stop deposit their money with them. Not even the return of capital guaranteed if. Islamic bank cannot finance the project from the only investor in the form of guarantees. The bank will be a partner in this project. This requires careful assessment of the project's viability and risks of participation because of the benefits based on the amount of project risks. Honesty and trust on both sides of the market are more important for the banking system Islam
5.2.1.4 Fourth Phase (1991-2000) Privatization and De-regulation

And not the government, led by Prime Minister Nawaz Sharif completely satisfied with the performance of nationalized. The areas which came under severe criticism, and the low level of common banking, There have been complaints about the key services such as remittances overdue, and issuance of checks, drafts, window ineffective services, bad debt from banks and others were under the privatized sector and other banks which UBL HBL was also invited, but the response has been very bad tender. Privatization of these banks is under consideration. Passed legislation to allow for the establishment of new banks and the government approved 10 demands by the private sector for the granting of licenses to commercial banks by the SBP, this has already been nine banks new compact. By March 1994, there were 20 branches of local banks due 9825 and 21 foreign banks with 66 branches operating in the country. The total investments of banks established in the current year to 76.7%. Now it has been absorbed Mehran Bank of National Bank due to low yield and limited ultimately failure
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Present status and history

National Bank of Pakistan maintains its position as the bank of Pakistan Prime Minister is determined to set higher standards of achievements. Which is a major trading partner of the Government of Pakistan, with a particular focus on promoting economic growth through aggressive lending policies and balanced Pakistani and technology-oriented branches? The National Bank of Pakistan came into existence on 20 November 1949 with the National Bank of Pakistan NO.21 decree of 1949.It is a quasi-public bank such as banks and other businesses. Therefore, receives funds from depositors and provides loans / credit facilities in all sectors such as industry, trade and agriculture. It also acts as an agent of the Central Bank and working in places treasures where there is no branch of the State Bank of Pakistan there. National Bank of Pakistan also nationalized along with other banks, in January 1974. Bahawalpur merged bank also in this bank. In 1999 the National Bank celebrates its golden anniversary during the past fifty years the bank has taken important steps in the financial services industry in Pakistan. In 1999, the market share of 22% and remains the largest financial institution in Pakistan. Following is the brief history of National Bank of Pakistan 1950NBP established a branch in Jeddah, Saudi Arabia. 1955By this time NBP had branches in London and Calcutta. 1957NBP established a branch in Baghdad, Iraq. 1962NBP established a branch in Dar-es-Salaam, Tanganyika. 1964The Iraqi government nationalized NBP's Baghdad branch. 1965The Indian government seized the Calcutta branch on the outbreak of hostilities between
India and Pakistan.
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1967 Tanzanian government nationalized the Dar-Es-Salaam branch 1971NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation. 1974The government of Pakistan nationalized NBP. As part of the concomitant consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947). 1977NBP opened an offshore brain Cairo. 1994NBP amalgamated Mehran Bank (est. 1991). 1997NBP's branch in Ashgabat, Turkmenistan commenced operations. 2000NBP opened a representative office in Almaty, Kazakhstan. 2001Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan International Bank, of which NBP would own 45% and United Bank 55%. Also that year, NBP closed its branch in New York. 2002Pakistan International Bank renamed itself United National Bank Limited (UNB). The ownership structure of the UNB remained as before. The only change to the shareholding structure is that UBL had recently been privatised in Pakistan and was now owned 49% by the Government of Pakistan and 51% by a joint foreign consortium of Abu Dhabi. 2003NBP received permission to open a branch in Afghanistan.
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5.2.1.5 Vision & Mission Statement NBP vision Statement

To be recognized as a leader and a brand synonymous with trust, highest stander of services quality, international best practice and social responsibility.
NBP mission Statement

NBP aspire to the values that make NBP truly The nation 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 the stakeholder values Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate
Branches Network
ONLINE BRANCHES NBP SWIFT Network Customer facilitation Centers OVERSEAS BRANCHES No. of ATMs Islamic banking 1286 13 16 23 203 8
5.2.2 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).
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5.2.3 Business volume, reward honors & success Stories

Business volume
Annual Report 2011 (Rupees in Millions)

Total Asset 1149578 927421 525046 319531 110520 26011 17605 10.47 1300 16924
Deposit
Advance Investment Shareholder Equity Pretax Profit After tax profit Earnings per share Number of branch Number of Employee
Reward honors & success stories

3rd Global Human Resource Excellence Award 2012 Administered by Global Media Links in collaboration with Better Pakistan. "Listed in top 1000 banks of the world for the year 2012 by the world renowned The Banker magazine owned by the Financial Times Group, London. 2nd Global Human Resource Excellence Award 2011 administered by Global Media Links in collaboration with Better Pakistan. Pakistan: Transaction of the Year Award 2011awarded by Islamic Finance News, for two wind farm projects of 50MW each in which the bank acted as international inter-creditor agent (for the Islamic Development Bank, the Asian Development Bank and syndicates of local banks).
Transaction of the Year Award 2011 awarded by CFA Association of Pakistan for the private placement and offer-for-sale of Engro Foods Limited. "Bank of the Year" awarded for the year 2011 by the world renowned "The Banker" magazine owned by the Financial Times Group, London "Top Corporate Finance House (Fixed Income) Award of the Year 2011" awarded by the Pakistan Awarded Best Emerging Markets Bank 2011Awarded By Global Finance Magazine Bank of the Year awarded for the year 2010 by the world renowned The Banker magazine owned by the Financial Times Group, London "Runner up of Corporate Finance House (Fixed Income) Award of the Year 2010", awarded by the "CFA Association Pakistan". NBP is awarded President of Pakistan Trophy, a top slot award by Federation of Pakistan Chambers of Commerce and Industry in 2010. NBP is awarded Prime Minister of Pakistan Trophy, a top slot award by Lahore Chambers of Commerce and Industry in 2010 Among the global leading banks, NBP is the only Pakistani bank appearing in top 500 banks of the world in The Banker magazine owned by the Financial Times Group, London Bank of the Year awarded for the year 2008 by the world renowned The Banker magazine owned by the Financial Times Group, London Worlds Best Foreign Exchange Bank 2008 awarded by worlds leading financial journal Global Finance Best Return on Capital for 2006 amongst all Banks in Asia. - Banker Magazine in July 2007 "CFA Association of Pakistan". National Bank of
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5.2.4 Products and services

5.2.4.1 Products
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NBP Karobar
NBP Karobar Utility Store NBP Karobar Mobile Utility Store NBP Karobar Mobile General Store NBP Karobar Transport NBP Karobar PCO/ Tele-Centre
NBP Advance Salary
NBP Advance salary is for NBP Account Holders who are: Permanent Employees of Government, Local Bodies, Armed Forces, Autonomous Bodies and other Semi Government Bodies/Corporations disbursing salary of their employees through NBP. Up to 20 net take home salary can be availed, which should not exceed the maximum limit of Rs.1,000,000/-. Maximum tenure of the NBP Advance Salary Finance is 5 years (60 months). Maximum age of the borrower at the time of maturity of the finance should not exceed 59 years and six months.
Cash card
Use it as an ATM in any of the ATMs in Pakistan Use it as Debit Card in any of the outlets with ORIX POS machine across
nationwide. Cash withdrawal up to Rs. 20,000/- per day Account Balance Enquiry Mini Statement (Only at NBP ATM) PIN Change facility (Only at NBP ATM)
NBP Cash & Gold

With NBP's Cash n Gold, you can meet your need for ready cash against your idle gold jewelry. Rate of mark-up 15.50% p.a. Facility of Rs. 40000 against each 10 gms of net contents of gold No maximum limits of cash Repayment after one year Roll over facility Only gold ornaments acceptable Weight and quality of gold to be determined by NBP's appointed schroffs No penalty for early repayment
NBP Premium Saver
PLS saving Account Earn up to 8.50% p.a. +. Minimum saving balance of Rs. 20,001 and a maximum balance of Rs. 1 million* Free NBP Cash Card (ATM + Debit) Two debit withdrawals allowed in a month and no limit on number of deposit
transactions Profit calculated monthly and paid on half yearly basis
NBP online AASAN Banking

NBP Online" offers following services: Balance Enquiry Statement of Account Stop payment Cash withdrawal through cheque
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Cash deposit to own and third party account Transfer of funds to own and third party account
NBP saibaan
Home Purchase (House or Apartment) Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)
Home Construction Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)
Home Renovation Financing Amount Upto 15 Million Financing Period 3 to 15 Years Debt to Equity 80:20 (Maximum)
Purchase of Land and for Construction thereon Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 80:20 (Maximum)
Re-Financing (Balance Transfer Facility (BTF)) If you have a Home Finance Facility outstanding with another bank you can have
it transferred to NBP through a hassle-free process.
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5.2.4.2 Services Demand Draft

If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBPs Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch.
SWIFT System
The SWIFT system (Society for Worldwide Inter bank Financial
Telecommunication) has been introduced for speedy services in the area of home remittances. The system has built-in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of home remittances.The SWIFT Center is operational at National Bank of Pakistan with a universal access number NBP-APKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT.
Letters of Credit
NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
Cheques
We are withdrawing money from his account by written cheque of account.
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Payment Order
If the customer or account holder wants to make payment within the city, then this is done through P.O. It cant be cancelled without the consent of both parties. NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive.
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. Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market.
Foreign Remittances
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to: Increase home remittances through the banking system Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries
Short Term Investments

NBP now offers excellent rates of profit on all its short term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBPs rates of profit are extremely attractive, along with the security and service only NBP can provide.
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5.2.5 PEST Analysis

In conducting PEST analysis, it is required to consider each PEST factor as they all play a part in determining the overall business environment.
5.2.5.1 Political (Includes legal &Regulatory)

Elections in Pakistan, labor law, consumer protection, environmental standards, and regulations on the industry, competition rules, and relations between countries / situations, wars, terrorism and political trends, and government leadership, may be affected by taxes and government structures in our business. When the government changes, there may be changes in labor laws, in the event that the government should not be a wage increase will affect our business. If the government and leadership for change, then it can impose a high tax rate. Every day we hear about a bomb explosion in the area and many people were killed in the blast. This is also not a good sign for our business.
5.2.5.2 Economic
In Pakistan, and trends in economic growth, taxes, and the levels of public spending, disposable income, and growth in the employment / unemployment, exchange rates, tariffs, inflation, and prices import export, and levels of performance may be crude and high prices affect our business. The economic situation in Pakistan is a failure major challenges facing Pakistan economic and increased poverty and unemployment, and the fiscal deficit and the high and low investment has been inferred internal malfunction of goods along with increased demand and higher import prices to cause an increase in inflation to 12 percent in 2009-10 percent and 25 in the first quarter of last year. High rates of poverty, unemployment and inflation has a negative impact on our business.
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5.2.5.3 Social
Demographics (age, gender, race, family size, etc.), and changes in lifestyle, changes in population, education, trends, fads, and diversity, immigration / migration, health, and quality of life and trends housing, fashion, and the position of the work, can entertain, and work and earning capacity have a significant impact on our business. Pakistani people are crazy for the adoption of European styles 5.2.5.4
Technological
Can globalization and the technological revolution and inventions, discoveries and research, and energy applications / fuel / sources and communications, construction progress, and the computer, the Internet, and transportation, etc. affect our business.
5.2.6 Role of NBP in economic development

Banks play an important role in promoting economic activities and economic development of the country. Industry, agriculture, commerce, trade and many other economic activities rely heavily on banks. Banks assist in the mobilization of funds. It also helps promote the growth of domestic resources for development of loans to deposits and investment product. Banks not only collect people's savings, but also provide loans for the development of trade, industry and trade. The NBP play an important role in the financing and development activities in Pakistan. Help in the growth of the economy in all areas of our national life. This has contributed significantly to the economic growth of the country, and work in trade and industry in a wide area of operations. NBP was the first to enter the Bank credit system for small borrowers and farmers etc. second, to promote agriculture Liberal progress of bank credit for agriculture and rural development. Small short-term loans granted to farmers without interest. These developments may be in the form of seeds, fertilizer and tools NBP able to attract a large number of deposits through its branches in all parts of the country many, and thus able to provide a lot of credit to various sectors. NBP also provide funding for small industry for five years, credit facilities have been introduced to the
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people for the ordinary citizen in a wide range and more liberal than before. The main objective of this project is to make a contribution in building a developing country. NBP also helps to promote the establishment of new business through subscription of shares. Bank also contributes to foreign exchange earnings, but the business of foreign exchange in Mexico and abroad.
5.3
Organizational Structure
5.3.1 ORGANIZATION CHART OF NATIONAL BANK OF PAKISTAN
DESIGNATIONS FO HIGHER LEVEL OFFICERS PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT GRADE 22
EXECUTIVE VICE PRESIDENT GRADE 21
VICE PRESIDENT GRADE 20
ASSISTANT VICE PRESIDENT GRADE 19
GRADE I OFFICER GRADE 18
GRADE II OFFICER GRADE 17

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GRADE III OFFICER (GRADE 16)
5.3.2 No. of Employees

Accourding to annual report 2011 Total number of employ 16924
5.3.3 National Bank of Pakistan, Head Office
Head office of National Bank of Pakistan First building in the country with roof top parking
National Bank of Pakistan, Head Office NBP Building, I.I. Chundrigar Road, Karachi, Phone: +92 (21) 921 2100 (50 lines) Email: enquiries@nationalbank.com.pk Url: www.nbp.com.pk/
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5.3.4 Introduction of all Departments

Departmentalization
Dividing an organization into departmentalization. different parts according to the functions is called
These are the following departments Explain it.
5.3.4.1 Cash Department

The most important section in the bank is Cash Department.
Cash department performs the following functions.
Receiving Cashier Books Token Book Paying Cashier Book Scroll Books Cash Balance Book
Receipt
The money, which either comes or goes out from the bank, its record should be kept.
Payments
It is a bankers primary contract to repay money received for this customers account usually by honoring his qcheques.
5.3.4.2 Clearance Department

following are types of cheques collected for clearing: Clearing cheques Transfer cheques
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Collection cheques .Bank is prepare two book for recorded of cheques In-Word Clearing Books Out-Word Clearing Book
5.3.4.3 Advance Department

Advances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. Every bank has a department which advances money to borrowers.
Principles of Advances
There are five principles, which must be duly observed while advancing money to the borrowers. Safety Liquidity Dispersal Remuneration Suitability
Forms of Loans
In addition to purchase and discounting of bills, bankers in Pakistan generally lend in the form of cash finance, overdrafts and loans. NBP provides advances to different people in different ways as the case demand.
Cash Finance Overdraft/Running Finance Demand Financing/Loans

Muhammad Jahanzaib Roll No.11022720-028 Page 32
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5.3.4.4 Remittance Department

Remittance means a sum of money sent in payment for something. This department deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. NBP offers the following forms of remittances. Demand Draft Telegraphic Transfer Pay Order Mail Transfer
5.3.4.5 Deposit Department

It controls the following activities:
A/C opening. Issuance of cheque book. Current a/c Saving a/c Cheque cancellation Cash
5.3.4.6
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. branches. Following are the types of accounts open in the NBP
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Current PLS SNTDR PLS saving FC PLS term Premium saver BBA Call deposit
5.3.4.7 Credit Department

Credit Department is associated with other three departments related to financing i.e.
Trade Finance Ijarah Corporate Banking
5.3.4.7 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
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Pension book Photographs of the pensioner Two specimen signature, thumb and finger impression.
5.3.5Comments on the organization structure

Banking sector follow the chain of command and having special reporting requirements need to use all levels in this hierarchy. National Bank of Pakistan follows flat organizational structure so Greater communication between managers and with the junior/ senior staff .And because of the fewer levels of management which includes benefits such as lower costs as managers are generally paid more than junior/senior staff.
Regional Manager
Regional manager is on the top of the hierarchy, is responsible before the board of directors for accomplishing the bank or institution business in north region according to the board set plans and policies, and approved procedures and laws. Regional manager directly report to the country head.
Branch Manager
Branch manger Mr. Mumtaz Ahmed is the responsible for determining the incentives and rewards of the staff, evaluating their performance, ensuring the adequacy of their qualificationsexperiences-professional skills, and developing them continuously. BM operates in accordance with a set approach covering all the branch activities with regards to reviewing and evaluating all the banking operations it has, providing credit, and various administrative and financial matters, as well. Branch manager report to regional manager from the report to country head.
Operation Manager
All junior/ senior officers report to operation manager. Operation manager sustain coordination between branch manager and all junior/ senior officers. Banking sectors formulate Groups for the projects only in which one department helps other department to accommodate employees but not permanently.
Senior Officers
There are four senior officers in the branch. Senior officers regarding their department report to the operation manager. Senior officers of credits report directly to the branch manager. Muhammad Jahanzaib Roll No.11022720-028
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5.4 WORK DONE BY ME 5.4.1 Branch Introduction

During my internship in national Bank of Pakistan I enjoyed to work with staff of branch, Bhalowali Sialkot from 1st August to 30 September 2012 and I have a wish employee of national Bank of Pakistan. in minimum time it was impossible to work in all department and know to all work in bank but on my request manager are give opportunity I spend two more week in bank then I was eight week spend in a bank. I am very thankful to branch Sir Mumtaz Ahmed to provide me to good environment in bank.
Branch profile
Branch Name Branch Code Address Phone Fax Number Tehsil District Division Province Status Email NBP Chowk Bhallowali Branch Sialkot 1815 New Eminabad Road, Chowk Bhallowali. 052-6548070, 6658071 052-6448070 Daska Sialkot Gujranwala Punjab Online manager1815@nationalbank.com.pk , opsmanager1815@nationalbank.com.pk
Branch Hierarchy of National Bank Bhalowali Branch

Designation Manager Officer Grade I AF Officer Grade II Casher Officer Grade II BBO Officer Grade III Messenger
Names Mr.Ch. Mumtaz Ahmed Mr. Haider Ali Mr. Muhammad Abbas Mr. Muhammad Yousaf Mr. Neekallam
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Starting and ending dates of internship

Starting Date------ 01-08-2012 Ending Date------ 30-09-2012
5.4.2 Supervisor
Mr. Muhammad yousaf BBO Grade III Mr. Haider Ali AF Officer Grade II
5.4.3 Weekly Time Table:

I worked in National Bank of Pakistan Chowk Bhalowali Branch Sialkot. I completed 8 weeks of internship and performed many activities there. My weekly time table was as follows. Department Weeks Date 06/08/2012 Account Opening Account Opening Account Opening Account Opening 07/08/2012 Week 1 08/08/2012 09/08/2012 10/08/2012 Day Monday Tuesday Wednesday Thursday Friday Daily Work Introduction with all the Staff member of the branch Introduction to Account opening Department Receiving the account opening form Receiving the account opening form Receiving the application and issuing Cheque Book signature Daily Work Receiving the application and issuing Cheque Book Holiday due to 14 August Filling cheque and Slips
Supervisor Name: Mr. Muhammad Yousaf Department Weeks Account Opening Holiday Week 2 Account Opening
Date 13/08/2012 14/08/2012 15/08/2012
Day Monday Tuesday Wednesday
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Account Opening Account Opening
16/08/2012 17/08/2012
Thursday Friday
Filling cheque and Slips Closing the Account Signature Daily Work Due to Eid_al_fitr Due to Eid_al_fitr Introduction in Credit Department Introduction in Credit Department Loan against gold Signature -------------
Supervisor Name: Mr. Muhammad Yousaf Department Weeks Holiday Holiday Advance Advance Advance Week 3 Date 20/08/2012 21/08/2012 22/08/2012 23/08/2012 24/08/2012 Day Monday Tuesday Wednesday Thursday Friday
Supervisor Name: Mr. Haider Ali Department Weeks Advance Advance Advance Advance Advance Week 4 Date 27/08/2012 28/08/2012 29/08/2012 30/08/2012 31/08/2012 Day Monday Tuesday Wednesday Thursday Friday
Daily Work Loan against Gold Loan against Gold Loan against Gold Loan against Gold Loan against Gold Signature -------------
Supervisor Name: Mr. Haider Ali Department Weeks Government Government Week 5 Remittance Remittance Remittance Date 03/09/2012 04/09/2012 05/09/2012 06/09/2012 07/09/2012 Day Monday Tuesday Wednesday Thursday Friday
Daily Work Pension Payment Pension Payment Introduction of Remittance Introduction of Remittance Demand Draft Signature -------------
Supervisor Name: Mr. Muhammad Yousaf
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Department Weeks Remittance Remittance Remittance Remittance Remittance Week 6
Date 10/09/2012 11/09/2012 12/09/2012 13/09/2012 14/09/2012
Day Monday Tuesday Wednesday Thursday Friday
Daily Work Demand Draft Payment Order Payment Order Online Transfer Online transfer Signature ------------Daily Work Introduction of Clearing Inward clearing Inward clearing Outward clearing Outward Clearing Signature -----------
Supervisor Name: Mr. Muhammad Yousaf Department Weeks Clearing Clearing Clearing Clearing Clearing Week 7 Date 17/09/2012 18/09/2012 19/09/2012 20/09/2012 21/09/2012 Day Monday Tuesday Wednesday Thursday Friday
Supervisor Name: Mr. Muhammad Yousaf Department Weeks E remittances Western union Utility Bills Utility Bills Date 24/09/2012 25/09/2012 Week 8 26/09/2012 27/09/2012 Day Monday
Daily Work Payment of E remittance Payments of western union Collection and scroll of bills Collection and scroll of bills Give a Party to Bank Staff and Meeting with Branch Manager and thankful to all the staff of the branch for cooperation during the Internship Signature -------------
Tuesday Wednesday Thursday
28/09/2012
Friday
Supervisor Name: Mr. Muhammad Yousaf
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5.4.4 Detailed Description of the Departments in which Work

During the short time period of my internship in National Bank of Pakistan, I was
chance to work in these departments these are under following 1. Account opening Department 2. Advance Department 3. Government Department 4. Remittance Department 5. Clearing Department 6. Foreign remittance 7. Utility Bills Collection The purpose was give a closer look the work of whole of banking institution I spend a four or five days in each section to learn more and more staff required its rally a great learning experience.
5.4.4.1 Account Opening Department

During my internship we start from opening department I learned and observed a lot of about the opening of an account. I think that the opening the account of customer is become a good relations between customer and banker. Due to opening a bank account then become a customer of a bank and a learning the basic requirement and step that are necessary to opening a new account then bank analysis all the documents and all the required information NBP gives a many deposit scheme of account these are the some generally open account following
Current Account Profit and loss share account And Fixed deposit account
Current account
This is depend on customer which account opened demanded. When a bank accept to filling the request that is obligation of bears to pay all checks drawn etc. and the limit to balance to his account due to nature these deposit account the liability of the bank and the bank of Pakistan are not giving a profit on this account and the requirement of customer to the minimum balance and deducted the charging on current account service. This is the most important function of current account customer are withdraw money any time from his account there is not any charges paying to bank in this account not giving profit to customer and not any entry fee charge from customer. Current account use for fixed deposit when customer opening a fixed account first to open a current accounts that is use for profit withdraw that earn from fixed account. Customer draws a check on bank and withdraws profit every month.
Saving account
And the second account is profit and loss saving account customer can open a saving account the deposit a very small amount of money, in saving account not any service charges paying to bank in this account if a specific amount for specific time period then bank calculate a profit and give to customer that are paid after 6 month and the cheque book issues to customer for the withdraw money from his account. There is no restriction on withdraw from deposit account and not encourage to unnecessary withdrawal of deposit that policy allowed the state bank of Pakistan saving plan flor students in college and university and as well as industrial work. And the other purpose of encourage the habit of saving in people and the initial deposit are very less required. And all account are open free of cost to customer.
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Fixed Account
Third is a fixed account bank are facility to our customer of fixed account in this account bank are fixed a specific amount are fixed for specific period and open a current account for withdraw a profit every month that is mostly five to ten year.
Precautions necessary to open an account: Know your customers:

The aim of the knowledge of your customers is to get an idea of the financial resources of the clients, and identity and general information on opening an account. Bank must have the following information about your customers.
Customer name:
Initially enter the name of the client complete and in accordance with the NIC card and the name of the company and according to business documents if a person of the salaried class enters their employer name.
Address:
Enter the full address in Business Administration / residential. The customer is responsibility to provide a valid address.
Contact number:
Enter the house and the official mobile number and e-mail address (if any). Can
verify the number of banking by giving a call or send an e-mail message to him on the customer.
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Special instructions:
We get all the instructions from the customer. If the client must not given special instructions column is deselected by drawing a line, and this should not be a blank column in any circumstance.
How to open an account

National Bank of Pakistan before to opening a account I observed the following conditions to fulfill for open new account. Account holder is must signature on account opening form in the bank. The required the two copy of national identity card customer and two copy of NIC any other person for after original account holder to owner an account. Bank is without give any reason to refuse to open an account. The bank is right to change a minimum balance of requirements. The minimum amount of balance to open a account for current and saving five hundred and for fixed account one thousand.
Procedure to open an account

According to my practice in National Bank of Pakistan when the customer wants to open an account bank officer receive a two NIC copies to any other family member and all information which is necessary to open an account by the bank. First the account opening officer get a NADRA verification form the resource of NADRA and one copy of verification send head office Sialkot then after approval from head office. We are open account then opening a account through online then download these account opening form in hard form then signature of customer on these forms. That are the basic requirement of National bank of Pakistan for opening a Account. Title of account Full name of applicant
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Occupation of applicant Address of applicant Phone number of customer Currency of account What kind of your business And introducer name address and signature And any special documents regarding the account And to initial deposit of account
And the signature of applicant. Documents to be attached

And I learn that if you open these account then these documents are required. These are the different types of accounts.
Joint Account
For opening the joint Account required the both person NIC copies.
Sole proprietors Account

In order to open an account with national bank of Pakistan sole proprietor has
to submit their business certificate number of registration.
Partnership Firm Account

Information that is required submitted to be National Bank of Pakistan in the case of partnership firm. These are following requirements Full name of business Complete address of business The partner specimen signatures And the true copy certified of partnership Deed If the partnership registered required the registrations Number
Societies and Association Account
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The bank are open the accounts of any clubs and any association and that are noncommercial business which are promote to society and education and other charitable purpose and any other welfare work some of these welfare organization registered through societies act 1886 and these act to give a registration certificate after all condition fulfillment.
Specimen Signature
The signature of applicant for the purpose of security take on specific in this card write a name of account holder and the account number that are issue to customer and these card scan by the using of scanner and record in our computer for using any time when need it.
Filing of deposit slip for Cash

Filing the slip deposit in his accounts for initial amount first stamp of branch on
top on slip then write the title of account then write Account Number, write the amount that deposit and signature of Depositor.
Filing of Deposit slip for Cheque

First stamp of branch on top on slip then write the title of account then write
Account Number, write the name of these bank that cheque deposit, and write the number of cheque and signature of Depositor.
Zaqat Affidavit
If the customer gives a Affidavit paper of zaqat then no zaqat are deducted in his account if these affidavit not give the on 1st ramdan deducted zaqat every year.
Letter of Thanks
Letter of thanks is the latter issued by the bank to the customer for two purposes 1 purpose is to say thanks to the customer for opening the account in their bank 2nd purpose is to confirm the address provided by the customer while opening the account.
st
Issuance of cheque book

When the customer open account in bank then the bank is issue a cheque book to customer for the purpose of withdraw of money our account and bank give a first time to cheque book to customer that is contain on ten cheques in a book first take a form for issuance cheque book that are sign by account holder then the first cheque number and last cheque number write on form and write date on form then record in cheque book register first write serial number of cheque number then name of account holder then account number and signature of account holder on register. Then sign by the officer and give cheque book to customer. And the charges of cheque book recovered from customer and every cheque price Rs. 5 bank are debited the customer account. When the issue cheque book second time than on page of paper in his cheque book that take a page with the signature of account then applying online and the process of issue are same thats above explain but in second time cheque book issue are not any form required.
Request for cheque book to head office

The cheque book printing in head office in Karachi we are open a website which is use for cheque book that are NIFT than the officer login and first write a account number and name of account holder and select cheque book that required.
Payment of cheques
In the national bank of Pakistan I learn how to make a payment of cheque. First filing the cheque first name of barer or self next write a date and amount that are required to customer write in word and then next write in figure then the signature of account holder front on cheque below the right corner of cheque and give to BBO that are checking customer balance if meet to that draw a cheque then stamp of verifying signature and pay cash then posting a cheque in system and stamp of posting and forward to manager checking check and sign and refer to casher and stamp of paid cash and signature of receiver on back of cheque and pay the amount.
Cheque cancellation:
These are the some following condition the cheque are cancelled Write any future date on cheque Any overwriting on cheque Warn out cheque Wrong signature of account holder Difference in figure and word amount If the insufficient balance in customer Any other wrong filling of cheque
How to close an account

The account can be closed from the account holder at any time.the customer filing the account closing account form and submitted in bank then bank are all amount paid to customer and closing the account and customer return cheque book to bank and the office cancel all the remaining cheque in cheque book.
5.4.4.1 Advance Department

This is the most important department of a bank is advance department and bank earn a large portion of profit through this department. And the every bank give a loan to customer and earn a profit in NBP bhalowali branch Sialkot the head of advance sector AF officer Sir Mr. Haider Ali he is very qualified person. The advance department is a basic function to provide a loan to customer short term and long term both but in this branch give loan only against Gold mortgage. Officer makes a proposal of loan and gets all information from customer that is required. And the main function this department takes a loan at loan interest and gives the surplus money to customer at high rate of interest.
Loan against Gold

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This is the most common form of bank lending. You can meet your need for ready cash against your idle gold. The markup rate is 15.50 percents and the facility provided 40 thousand rupees against each ten grm of net contents of gold. And no maximum limits of cash for loan, the loan repayment after the period of one year and only accepted gold ornaments and the quality and weight of gold to be determine by national bank of Pakistan goldsmith appointed and no extra charges for early repayments.
Procedure for advance loan

These loans give only agriculture development against by mortgage of Gold. That loan give for one year short period of time. First the customer comes in bank for Appling for loan. Loan department deal Sir Haider Ali advice to customer all the requirement that is necessary for taking a loan. First go goldsmith for the checking the quality and weight of gold these goldsmith Muhammad shabbier appointed by national bank of Pakistan Bhalowali. Then the goldsmith write a information of gold on a specific paper the gross weight of gold and the net weight of gold and the market price of gold and the signature of manager of goldsmith. Then the customer come in bank and casher check and checking the weight of gold and then write the amount of loan that are give to customer. Then Haider Ali become a proposal of loan online filling the form on computer then these form printed in hard form and signature of customer all pages of proposal and attached the three legal stamp paper and three other vouchers become one a Debit voucher for the payment to customer amount one for insurance and other withholding tax then refer to manager check all proposal and signature on proposal that vouchers payment to casher on counter and one debit voucher that the casher payment to customer. The these proposal kept in a separate file then filling these stamp paper and open a account in ledger register first write the name of customer and address of customer then write a NIC of customer and Phone number date of birth and the amount of loan write in
debit column and all the information and what kind of jewelry and its weight and the market price of gold and calculate the withholding tax and insurance write in register then these register check by casher and signature of casher and Manager. Then these file refer to account opening department then open the account online and printout the proposal and signature by customer these accounting opening form kept in file and these file kept in records in banks customer receives money and go to home.
5.4.4.3 Government Department

Government department is a important part of the bank these obligation any
penalty assign from statement bank of Pakistan due to the reason any mistake or nor completed work and balancing.
Government Payment
Government payments are included Payment of salary Payment Of pension Pension payment to Armed force Retired officers of PAF and families Traffic Chillan
The Pension Payment Documents Required

Pension Payment order CNIC Number and the date of Expire Two Specific Signature/ thumb One photographs of the pensioner in register of pension Original pension Book Officer enters them in a ledger to kept permanent record.
Payment of Pension
First filing the pension payment order write the PPO and the name of pensioner and the signature of pensioner two place and write amount of pensioner payment then
we two stamped use one verify stamp and 2 nd is paid cash then refer to managers signature on register book and pension book and on pension payment order. Then manager give to casher pension book and pension payment order casher kept the pension payment order and pay money to pensioner.
Make a Scroll
At the end of day these all pension record in pension record register and then make a scroll on Excel sheet write a name of pensioner, PPO number of pensioner and amount that are payment to pensioner. And make a debit voucher and send to main branch Daska by postage.
5.4.4.4 Remittance Department

Mostly use the business remittance is the primary function of remittance department to transfer funds one place to another place. Remittance means to sum of amount in payment for something. That department is facility provided to our customer transfer money one branch to any other branch. That is provide safety to our customer National bank of Pakistan bhalowali branch are issue the following forms of remittance facility provide to our customer. Demand Draft Pay order Online transfer of
Demand Draft
The important mode of transport is Demand draft. The customer filling application form for issue demand draft, on this form the name of sender and account number of sender and include the name of beneficiary. And the customer submitted amount of DD in branch then the making a demand draft and give to the customer. If the customer are account holder then first deposit amount in our account then draw a cheque and NBP
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charging receive 130 rupees for account holder if the customer is not account holder then pay a tax and bank charging. And two types of DD a) Open DD: b) Cross DD: open DD is where direct payment is mad. but cross DD is where payment is made through account
National bank of Pakistan are charging these on making demand draft
Up to fifty thousand is 130 rupees only And over fifty thousand is 2.6% only
Pay Order
Local wages for the transfer of funds are arranged. Pay order is the most
convenient and simple and safe mode to transfer one place to other. National bank Pakistan is not charge any commission to making of pay order, bank are daily expenses paid by payment order for example the payment of charges of news paper then make a payment order and signature of receiver of payment order on back are two and one on payment order book then the customer show these payment order to casher and casher receive pay order and give a money to customer and kept ka pay order posts circle of choice and signs the application. If the customer wants to pay in cash, then cash is submitted by the client with the bank charges and withholding tax and only expense is deducted. If the customer pays by cheque then we are not charging a withholding tax from customer.
Online Transfer Money

National Bank of Pakistan has minimum charges of online conversion service. Depositor simply fill out the deposit slip with the amount to be transferred Attach your account and the account number to deposit. National Bank of Pakistan of the computer system and the Internet is the fastest way transfer money from one city to another. If the customer deposits cash for online then charge a withholding tax from customer if the
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account holder draw a cheque and transfer money his account then customer are not paid a withholding tax. We take a NIC copy of sender and filing online form then printout these then on these form signature of sender.
5.4.4.5 Clearance Department

Exchange of information of commercial banks is an association in a specific place for the purpose of sharing credit and the claims settlement. In the Pakistan the system of clearing running by the statement bank of Pakistan. If the offices of statement bank are not available in place then NBP the represented of the SBP as a clearing house for information. When the cheque draw on one bank and the holder and the deposit in his account at the bank of stairs and settle the mutual commitment by two banks and change the total assets and liabilities of both banks when a account holder submitted a check in his account then that bank send to cheque head office and head office send to these credit branch when the clearing pass and return to bank then the bank credit the customer account. That is a very simple and safe way to transfer to money. A particular bank the difference the total represents the money to paid ad the amount to be receiving by it. Each and every bank and then receive the amount from him or pay the net amount owed. In NPB bahlowali branch is headed the clearing department Sir Muhammad Yousaf has twenty years experience. This is the basic purpose to provide the facility cheque their customers to pay another bank. Difference between the total represents the amount to be paid by a particular bank, and the amount to be received by it. Each bank and then receives the net amount due from him or pay the net amount owed. Bhalowali NBP branch is headed this section by Mr. Muhammad Yousuf has twenty years experience. The goal of this section is to facilitate checks their customers to pay another bank.
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In-Word Clearing Books

The bank is using this book recording all the cheques that are received by the bank in the first clearing. In this register all information recovered in the book. First we are check the account balance and the signature of account holder if both are correct then two stamp one for verifying signature and other for bank transfer stamp. And make a debit voucher then give to manager and manager signature on cheque and debit voucher and return to BBO then we are debiting the customer account and credit cash then the original debit voucher send to NIFT and the photocopy kept in record.
Out-Word Clearing Book:

The Bank uses abroad survey record for the purpose of recording all the details of the checks that the bank had been delivered to other banks. When the customer deposit a cheque In his account then we a filing a credit slip write a name, account number and the signature of customer and write a cheque number and write a amount . At the end we are record in a clearing register and attach a bundle cover and send to NIFT. Next day return a clearing then credit the customer account.
5.4.4.6 Computer Department:

These department headed by the Muhammad yousaf are performing the all function of computer department the basic function of computer department to provide the facility to customer in the payment of cheque. These are the main function that are perform by computer department are as follows. Checking balance of account holder. Posting of cheque Issuing bank statements to Account Holder. Payments of Western Union.
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Payment of Express Money Dealing E remittance.
5.4.4.7 Foreign Remittance

Payment of Western union
We receive a Ten digits number and photocopy of CNIC of customer and original CNIC then open a logion then enter number then enter the CNIC number of customer then enter that become a payment and printout on page two signature in front page and two signature of customer back side of paper and the cash paid stamp on front side. Then send to casher stamp cash payment with date and give a money to customer At the end of day all report are generated and print out on page and make a credit voucher F16 send to main branch Karachi by postage.
Payment of E Remittance
This same process as to western union but in E remittance write name, Address, phone number NIC number, issue date of NIC and Expiry date of receiver, and name of sender. Then enter and print on page. Two signature in front page and two signature of customer back side of paper and the cash paid stamp on front side. Then send to casher stamp cash payment with date and give money to customer At the end of day all report are generated and print out on page.
5.4.4.8 Utility Bills Collection

I worked in the utility bills collection department as the national bank of Pakistan collects utility bills on behalf of WAPDA sui Gas companies and Pakistan telecommunication corporation limited by putting the stamp on the utility bills receive cash stamp and date of receive and the signature of the cash officer receiving on the utility bills. Bills are divided into two parts one part return to customer and other kept in bank. At the end of day all bills arrange and making a collected record on excel sheet that is called scroll. One copy kept in file of bank for record and one scroll copy send to
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WAPADA Sui Gas and PTCL office. The bank charge commission on the bills. National bank charges Rs. 8 per bill collection.
5.4.5 Describe details of the tasks entrusted me

Following responsibilities assign me. And perform a work during internship program, first day manager Mr. Mumtaz Ahmed introduction All Department in a Bank due to the reason of less employee in branch there are no separate department and all details mention in daily time table in start in internee work first sit in accounting opening and introduction how open and account mostly assign me to manual work due to restriction by head office Karachi not allow to use computer these are all task perform during my internship program as following. Fill out online & deposit slips Opening new account opening procedure tell me our work only record in account opening register and printout these account opening form. Daily filing cheque and deposit slips I was making Scrolling of utility bills on excel sheet Print out the verification NADRA for account opening In word clearing record and make a voucher Out word clearing filing slips and sending to head office by NIFT Maintain postage and stamp register Dispatch a zero balance letter to customer Dispatch a Dormant/ inoperative account letter to customers Check book issue to record Opening account in ledger register loan against loan Filling the legal document of loan in proposal To maintain saving and current account register Pension payment record in register Filing check Filing the other charge voucher Western union payment
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E remittance payment Express money payment Maintain utility bills register Printing of account opening forms Make payment order Make Demand draft Maintain clearing register Send request for new check book online Receiving check book from NIFT and record in register
5.4.6 Summary of Learning

The main purpose of the internal do not only to fulfill the academic requirements are nor better quality achieve during the eight week of my internship program also to learn more application of our field of study relative in our market. I learned a lot and the real impacts of learning on my career social life in a community the training matter also as culture organization and the values of the people their attitude toward the bank.
5.4.6.1 What are the skills and qualifications you think you have gained from the training?
Before the start of training in my National Bank of Pakistan, I think it was a continuous to do in a bank because the student does not show a real interest practical work. I have learned more skills and writing are whole skills explain is more difficult task. Always some are hidden skills that can only come given stage. How to develop a position to do hard work in the bank and the performance are increase the similarly whole of the period. How to show the regularly and to dedication to the bank and to dealing with customer of staff member of bank and in difficult position we are not take a any tension and make customer feel that they trust you and solve the exiting problems. Between the job performance and your life style so they communication above all my work and influence power and increase the skills of computer and how to work
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with colleagues in our job life and supervision of our employee and regularity and run to proper time table. And the important I have learned a lot of skills and dealing with hundred customers in a day and the breath of customer with reading behavior and communication by the using of way of talking with us. And any employee is work done is excellent and to how encouraged it.
5.4.6.2 What kind of responsibilities that you have undertaken during the training period
The following responsibilities assign me. Fill out online & deposit slips To open an account Log mail items at bank recording regularly Scrolling performance To perform the verification NADRA In word clearing record and make a voucher Out word Clearing sending Maintain postage and stamp register Check book issue Opening account in ledger register loan against loan To maintain saving and current account register Pension payment register maintained Filing the proposal of loan Filing check Filing the other charge voucher Western union payment E remittance payment Express money payment Maintain utility bills register Printing of account opening Make payment order
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Make Demand draft Maintain clearing register Send request for new check book online Receiving check book from NIFT record in register
5.7.3 How do you think the internship will influence your future career plans?
I had spend of our time of internship some in general banking and the difference responsibilities are assign in the period of training in every department. I have in the period of internship I shall talk in the general about the obligations that are some important points are discussed. First of all I undertook the responsibility of regularity and the development of the position you need it in a timely so that everyone can develop negative thinking about me. And the second is work hard and accomplish the tasks assigned in a timely manner. That is a most important for any achieving a successful in business.
Third I learn something new in the field. 5.7.4 How do you think are related internship activities that you carried out are correlated with your class room knowledge?
I had some confusion about the banking system in Pakistan before the start of training in a bank my friend and relative give a suggestion to internship in any other industry but I confused mind in every mind. And there is knows faults that the process difficult for the bank if any small mistake become a big problems and every day complete a work at the end. After closing the day all work is checked them. And I have decided to working in banking sector in the future because I am seeing in the beautiful work in the future time period because I are very enjoy and happy working in banking sectors if in banking sector give me a best packages of salary I prefer to banking job. Second part is a between the training session in banking sector and the knowledge of class room I have done if my perception I have my own perceptive that
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the class room work knowledge and the effective in the market is not tied too much in the opinion. And the big benefit of classroom study is that and the getting any training in any business organization in any field and I able to relate the bookish knowledge to any organization working rules. During the first days means staring day we are not perform our work efficiently. But when go any permanent job in any organization after completion of degree then we are perform efficient work in any organization due to that the benefit of internship that are learning many to you. Because we are perform a practical work before any starting a job. That is better for him. Finally I just want to this section most adopt this type of health working in any organization during our educational period we are learn more that classroom knowledge how to use in organization working and that will benefit for student in his future.
6. Conclusions of the report

6.1 A Summary of key conclusions derive from the training experience.
The training session has a completed and I enjoy the work in bank a lot of feelings. During the training session I learn the following things. First I know that the knowledge of university is not enough to working in any organization because the knowledge of class not apply to all in work but the training is compulsory for learning the organization work otherwise we are not good working on the starting of any job. But soft skills are very important when we do a job. When we going to the bank I realized that the relationship between the staff member and the customer of the bank, if these relation are good in staff member and with customer we get big benefit enjoyed. In short time period we are not proper knowledge gained but that are the basic skill are learn that are more benefit for in my future life. And the bank is key role to any success of country.
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6.2 General observation about the sector National Bank of Pakistan.

Banking sector in Pakistan has great facilities provided for investors and the creation of jobs for new applicant and the provided a very colorful future. And there is not wrong a job of bank is difficult and to achieve the goal is difficult but I observe the state respect and honor in the society. For increase the foreign investment to need to overcome on terrorism and solve the economic crisis. Due to the best reputation our country and bank then attract to foreign investors to willing to invest in Pakistan but due to the reason the terrorism may to foreign investors are not safe investment in Pakistan. Need of the hour is to increase the foreign countries and the domestic investment that are play a more role in the growth of Pakistan economy.
6.3 SWOT analysis

And SWOT analysis by the scanning for environmental and analyze the strength and Weaknesses opportunities and threats by the bank of the external environment called analysis indicate some organizations strength opportunities and threats and weaknesses and SWOT analysis. This analysis is very important for the organization and management to maintain the force, and to overcome the weakness, capitalizing opportunities for up-and-coming, carving ways to deal successfully with the threats and Turn them in strength of the organization. During training for eight weeks in the bank bahlowali branch Sialkot I came across the following SWOT analysis of the bank. The NBP bhalowali branch SWOT analysis below:
6.3.1 Strength
And one of the most important products in the NBP is a great strength. Bank mostly relying on customer service Customer gives ideas to improve the efficiency of bank and bank appreciate to customer for given our opinions.
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The bank staff best cooperation to our customer. In bank environment is friendly in staff member. The products of bank are excellent. Branch is modern online and internet facility. Bank is a fully computerized and every person work on computer . And the ATM card free giving to customer. And the customer lockers are not available. And NBP is the government bank leading to private sectors bank. And the transfer of funds electronic system. Use a phone banking
6.3.2 Weaknesses
In my opinion these are the points that could determine the efficiency and profitability of the bank. In branch culture are mixed Branch are situated in village And branch is new setup online The facility of credit card is not available And the weak system of audit And the staff is less. Give loan only against gold reserve. And not available photocopy machine in bank. And internet connection is not proper working. And the lack of technical skills in staff because manual banking but now an online banking use.
6.3.3 Opportunities
It is a opportunity the informational technology.
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And give a facility to customer credit card. And use a best connection of internet and work is efficiently perform. And expand a local setup.
6.3.4 Threats:

The more competition 2nd the legal reputation are good required. And the early response to scenario changing of bank And the economic and political condition on bank
7. Recommendations:
Regulatory issues Related to the regulatory authority is received An expert staff physically presents at the committee of senior officials bank received complaints from customers and criminals should be caught red- handed person. Box is such that no individual complaint outside the box can be accounting to the papers. As the head office is addressing pension, old age pension holders especially in this branch facilities should be increased to provide. Security cameras and the latest technically should be fine. NBP deposit mobilization should introduction the product. All employees will be a check and balance should be implemented. Penalty charge a handsome amount employees must be guilty. Different periods in a financial year in training sessions should be conducted. To make employees more efficient and overall competitive Advantage rules somehow the top management should be applied to all employees. Account debt issuance and other methods should be more convenient and flexible. Ensure that all such employees to follow rules.
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8. Reference & Sources used

www.nbp.com.pk www.wikipedia.com www.scribd.com. Friends cooperation Personal Observations Orientation books of NBP And customers of NBP Annual Report of National Bank of Pakistan 2012 Staff Member of NBP Bhalowali Branch Sialkot
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Muhammad Jahanzaib (11022720-028) MBA Internship Report National Bank of Pakistan

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Muhammad Jahanzaib (11022720-028) MBA Internship Report National Bank of Pakistan

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AN INTERNSHIP REPORT ON [National Bank of Pakistan Chowk Bhalowali Sialkot]

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

6.3.1 6.3.2 6.3.3 6.3,4 7 8

Strength Weaknesses Opportunities Threats Recommendations References

Muhammad Jahanzaib Roll No.11022720-028

Muhammad Jahanzaib Roll No.11022720-028

Overview of the Organization

5.2.1 Brief History

5.2.1.1 First Phase (1947-1974) Commercial Banking in Pakistan

5.2.1.2 Second Phase (1974-1979) Nationalization of Banks

Allied Bank of Pakistan Ltd

5.2.1.3 Third Phase (1979-1991)

Introduction of Islamic Banking

5.2.1.4 Fourth Phase (1991-2000) Privatization and De-regulation

Muhammad Jahanzaib Roll No.11022720-028

Present status and history

India and Pakistan.

Muhammad Jahanzaib Roll No.11022720-028

5.2.1.5 Vision & Mission Statement NBP vision Statement

NBP mission Statement

5.2.2 Nature of the organization

Muhammad Jahanzaib Roll No.11022720-028

5.2.3 Business volume, reward honors & success Stories

Annual Report 2011 (Rupees in Millions)

Reward honors & success stories

Muhammad Jahanzaib Roll No.11022720-028

5.2.4 Products and services

Muhammad Jahanzaib Roll No.11022720-028

NBP Advance Salary

NBP Cash & Gold

NBP Premium Saver

transactions Profit calculated monthly and paid on half yearly basis

NBP online AASAN Banking

Muhammad Jahanzaib Roll No.11022720-028

it transferred to NBP through a hassle-free process.

Muhammad Jahanzaib Roll No.11022720-028

5.2.4.2 Services Demand Draft

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Short Term Investments

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5.2.5 PEST Analysis

5.2.5.1 Political (Includes legal &Regulatory)

Muhammad Jahanzaib Roll No.11022720-028

5.2.6 Role of NBP in economic development

SENIOR EXECUTIVE VICE PRESIDENT GRADE 22

EXECUTIVE VICE PRESIDENT GRADE 21

VICE PRESIDENT GRADE 20

ASSISTANT VICE PRESIDENT GRADE 19

GRADE I OFFICER GRADE 18

GRADE II OFFICER GRADE 17

GRADE III OFFICER (GRADE 16)

5.3.2 No. of Employees

5.3.3 National Bank of Pakistan, Head Office

Muhammad Jahanzaib Roll No.11022720-028

5.3.4 Introduction of all Departments

These are the following departments Explain it.

5.3.4.1 Cash Department

5.3.4.2 Clearance Department