INTERNSHIP REPORT ON

NATIONAL BANK OF PAKISTAN

MANDIAN BRANCH ABBOTTABAD (1348)

Submitted by: Syed Mohsin Shah

Roll# S-020-2012
Supervised by: Sardar Ejaz Ahmed

Government College of Management Sciences

Abbottabad.
SESSION
2012- 2016

INTERNSHIP REPORT ON
NATIONAL BANK OF PAKISTAN
MANDIAN BRANCH ABBOTTABAD (1348)

Submitted by: Syed Mohsin Shah

Roll# S-020-2012
Supervised by: Sardar Ejaz Ahmed
This internship report is submitted in partial
fulfillment of the requirements for the degree of
Bachelor of Business Administration awarded by
the Hazara University,
Mansehra

Government College of Management Sciences

Abbottabad
SESSION

2012-2016
GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES,
ABBOTTABAD

APPROVAL SHEET

Approval Committee
1. External Examiner
Mr.______________________ Signature______________________

2. Supervisor
Sardar Ejaz Ahmed

Signature______________________

Designation Assistant Professor

3. Head of department
Mr. Mushtaq Ahmad

Designation Principal

Signature______________________

DEDICATION
i Dedicate this report to my friends , Teachers and sibling for their Support
throughout my Studies.

ABSTRACT
Taking a bulk of professional knowledge and skills is the fundamental to be successful in the
fired environment of competition, where thousands of business graduates with different
competencies are trying their fates.
As the competition becomes tough, making it compulsory for every business graduate to
develop the skills and abilities strong enough to prove his/her competencies in the market
place for long term survival.
This internship report is an attempt to write my learning during my internship. Being a
student of BBA (Hons) I have been asked to write the internship report base on my
experiences and observation in the organization. Internship is a practice oriented program
which provided me a chance to learn more about the practical applications of business
concepts in an organization.
I did my internship in NBP Mandian Branch. NBP is one of the competent banks in the
Pakistan. Internship period was not sufficient to understand and analyze the functions
performed in different departments of bank but still it was a gateway towards learning. I tried
my best to utilize my moments of internship by learning and observing skills, techniques,
working pattern and practical application of business concepts.
This report includes the overview of the NBP, its functions and operations. At the end of the
report the constructive and aiding suggestions and recommendations for improved working
are also given.

TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION

01

1.1 Introduction

01

1.2 Objective of Study

01

1.3 Purpose of Study

01

1.4 Limitation about Study

02

1.5 Advantages of Internship

02

1.6 Data collection methodology

02

CHAPTER 2
HISTORY AND INTRODUCTION OF NBP

04

2.1 Meaning of Bank

04

2.2 Evolution of Banking in Pakistan

05

2.3 Definition of Banking:

08

2.4 Introduction

09

2.5 Background

10

2.6 MISSION STATEMENT

11

2.7 Vision

11

2.8 Branches of national bank of Pakistan

11

2.9 Auditors

13

2.10 BOARDS OF DIRECTORS

14

CHAPTER 3
PRODUCT AND SERVICES OF NATIONAL BANK OF PAKISTAN

21

3.1 Services of NBP

21

3.2 Departmentalization in National Bank of Pakistan

24

3.3Product of National bank of Pakistan

28

3.4. Services of National Bank of Pakistan

30

CHAPTER 4
FINANCIAL ANALYSIS

33

4.1 Different ways of analyzing of financial data

33

4.2 Common Size Analysis

33

4.3 VERTICLE ANALYSIS OF BALANCE SHEET

36

4.4 Vertical analysis of income statement

41

4.5 HORIZONTAL /TREND ANALYSIS OF THE BALANCE SHEET

43

CHAPTER 5
SWOT ANALYSIS

46

5.1 STRENGTHS

46

5.2 WEAKNESSES

46

5.3 OPPORTUNITIES

47

5.4 THREATS

48

CHAPTER 6
CONCLUSIONS AND RECOMMENDATIONS

49

REFERENCE

56

ACKNOWLEDGEMENT
First of all I am thankful to Almighty Allah, who is the greatest of all.
As for the report is concerned, I am very grateful to all the teachers of Government Post
Graduate college of Commerce for their sincere cooperation, helped me in the tough time. In
this regard, I am very thankful to my supervisor Sardar Ejaz Ahmed for his precious
guidance.
I am grateful to my Parents, my Family and my Friends for their help and moral support in
achieving my tasks successfully.
Finally, I acknowledge with pleasure, the kind assistance in preparing this report, of the staff
members of National Bank of Pakistan Abbottabad Branch for their guidance and provide me
valuable information regarding my this effort.

Syed Mohsin Shah

ABBREVIATIONS

AVP

Assistant Vice President

BOD

Board of Directors

D.D

Demand Draft

EBIT

Earning Before Income Tax

EPS

Earning per share

EVP

Executive vice president

I.T

Information technology

L/C

letter of credit

M/T

Mail Transfer

MIS

Management Information system

PLS

Profit and loss saving

SBP

State bank of Pakistan

SEVP

Senior executive vice president

SVP

Senior vice president

SWOT

Strength Weaknesses Opportunities Threat

SS

Specimen signature

VP

Vice president

EXECUTIVE SUMMARY
In this tense situation, a committee was immediately setup to formulate a scheme of central
banking legislation for Pakistan. Many specialists were of the opinion that in view of the
acute shortage of trained staff, any idea of establishing a central bank was I impractical and
the best that could be attempted was the setting up of a currency board until such times as
sufficient staff could be organize to operate a central bank.
As there was hardly any time to pass as Act, an order was drafted, known as the state bank of
Pakistan order, which was promulgated by the government of Pakistan on 12 th may 1948. The
state bank declared open on July 1, 1948 by the father of the nation.
In the current era of globalization and technology nobody can deny the importance of
banking sector for efficient and progressive functioning of economy. Banks act as financial
agents to their customers. Banks also play a vital role in development and growth of
economy. National Bank of Pakistan is one of the leading banks in Pakistan with its vast and
diversified working span. The bank is tied with a commitment of providing quality in various
domains of services and creating a conducive and fruitful environment for the staff members
as well as the customers. According to International Standards of Banking system it is one of
the most competent banks in South Asian region.
Basically the report consists of the structure and functions of the NBP. The Report explains
how the different departments of the bank work and what are their services.
During the critical analysis, it was observed that NBP is one of the leading commercial bank
of Pakistan with a network of around 1298 online domestic branches all over the Pakistan.
The NBP Aspires to be an institution which is unique for its quality services and creativity.
The first phase in evolution of banking in Pakistan sees very hard days for the whole Banking
sector. Starting virtually from scratch in 1947, the country today possesses a full range of
banking and financial institutions to cope with various needs of the economy. The area now
constituting Pakistan was, relatively speaking, fairly well provided with banking facilities in
undivided India, in March 1947 there were 3496 offices of Indian scheduled banks out of
which as many as 487 were situated in territories now constituting Pakistan.

The Reserve bank of India was the central banking authority in India. At the time of partition
it was decided that in the interest of smooth transition it should continue to function in newly
emerging state of Pakistan, until 30th Sep.1948.
In 1947 due to uncertainty and unsuitability the banking sector suffer heavy losses. This
resulted in a negative effect on baking service in Pakistan. The banks, which had their
registered offices in Pakistan, transferred them to India. In an effort to bring about the
collapse of the new state by pushing a deliberate policy of withdrawals the Indian bank
offices closed quickly. Those banks, which stayed, operated only in name pending the
winding up of their business. The number of scheduled banks thus declined form 487
branches before independence to only 195 branches by 30th June1948.