Final Report of NBP

Internship Report

FASIH UR REHMAN

BC-07007 (MORNING)B.COM (HONS.) (FINANCE)

SESSION 2007-2011

SUBMITTED TO FACULTY OF COMMERCE UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS IN TOTAL

FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE OF BACHELOR'S OF COMMERCE

UNIVERSITY OF THE PUNJAB

[Type the phone number]

[Type the fax number]

9 / 5 / 2 0 1 1

| (GUJANWALA CAMPUS)

Table of Contents

Sr. No. Description Page #

1 Dedication 4

Preface

Executive summary

2 Acknowledgment

4 History of NBP

5 Vision Statement

6 Mission statement

7 Core Values

8 Branch network

9 Products

10 Services

11 Departments

12 Work Done By Me

13 Current Problem

14 SWOT Analysis

15 Financial Analysis 2010

16 Conclusion

17 Recommendations

18 Biblography

19

20



Dedication

"To my Parents, Teachers and Friends"

I want to talk about friendship. Friends can change your life. So, you must know who is a real

friend. Firstly, your friend must understand you and of course, you must understand his/her,

too. I think, another important point in a friendship is confidence. You mustn't tell lies to each

other. In addition, you must say everything mustn't tell lies to each other. In addition, you

must say everything about yourself. I think these are important for a friendship.

Forgetting the things that lie behind, I will strive towards my

higher Spiritual possibilities. I dedicated my Report to

University of the Punjab Gujranwala Campus.


Preface

Banking sector owes a pivotal importance in the economy of any country through its vibrant

functions. This is the deep seated motivator that geared up me to join the National Bank of

Pakistan for my internship. Moreover the practice and the familiarity learned during this

tenure would also attest very helpful and alleviating in the awaiting proficient life.

This report is an upshot of my 6 weeks internship in National Bank of Pakistan Satellite

Town Branch Gujranwala. National Bank of Pakistan possess an imperative and historical

importance in the banking sector of Pakistan it always remains the center of hustles in

business activities, and act as trustee of public funds and as the agent to the State Bank of

Pakistan (in places where SBP does not have a presence)

Although a derisory period of 6 weeks is not enough to learn the complex operations of the

bank yet I made industrious efforts to converse them comprehensively in this report.

Particularly, I have made maximum ventures to elaborate this report with material read,

listened and observed.


Executive Summary

In order to contend with the changing environment it is crucial to have some practical

experience. During this practical course we are provided with an opportunity to learn that

how the theoretical knowledge can be put into practice in actual.

I selected National Bank of Pakistan for my internship, as it is the nation’s bank. I completed

six weeks in NBP Satellite Town Branch Gujranwala. It is a theme-based report in which I

have initiated from financial sector of Pakistan, narrowing down my discussion to banks and

then finally to National Bank of Pakistan. This report has been divided into three parts. In

first part, I have thrashed out financial sector of Pakistan, financial markets, financial reforms

and banks as well. Followed by, country and banking sector background is specified.

Subsequently, I have given a brief overture of National Bank of Pakistan. Then there is a

short introduction of its CIVIL LINES Branch Gujranwala and products and services offered

by it.

In second portion of the report, I have elaborated all activities and functions, which I

performed during my internship, in a step-by-step arrangement. I have also mentioned my

duties, accomplishments, and knowledge which I have gain during internship. A

comprehensive discussion about procedures and precautions for availing any product and

services are clearly stated.

The last part of the report solely composed of Financial Analysis of National Bank of

Pakistan. I have elaborated this financial analysis through proper comparisons, graphs and

comments as well.


Acknowledgement

First, I pay thanks to Allah Almighty, who is the most Gracious and ever Merciful, knower

of visible and invisibles who made me able to complete my task, before the time a lot. And

all the respects and tributes go to Holy Prophet Mohammad (S.A.W.W) who is forever

guidance and knowledge for human being on this earth

I am proud to say that I am very grateful to my family whose kind prayers and cooperation

helped me at every step of my work and specially thank my Parents for their cooperation and

support for the sake of my education

My kind teachers that always remained supportive to me, throughout my report. Their

guidelines have been beneficial to me and who taught me so well that I was in such a position

to work for the internship report with my own ideas.

I am so thankful to NBP staff specially MR. Kaisar, Abid Adeel and Asrar who were really

cooperative to me in the completion of this report and who directly or indirectly helped me in

completing my internship report on time.


Vision

To be recognized as a leader and a brand synonymous

with trust, highest standards of service quality,

international best practices and social responsibility.

Motto:

Sharing In Success with You


Mission

NBP will aspire to the values that make NBP truly the Nation’s Bank,

by:

Institutionalizing a merit and performance culture.

Creating a distinctive brand identity by providing the highest

standards of services.

Adopting the best international management practices.

Maximizing stakeholders’ value.

Discharging our responsibility as a good corporate citizen of

Pakistan and in countries where we operate.

Goal

To enhance profitability and maximization of NBP share through

increasing leverage of existing customer base and diversified range of

products.


Core Values

National Bank of Pakistan maintains its position as Pakistan's premier bank determined to

set higher standards of achievements. It is the major business partner for the Government of

Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive

and balanced lending policies, technologically oriented products and services offered through

its large network of branches locally, internationally and representative offices.

NBP aim to be an organization that is founded on…

Growth through creation of sustainable relationships with our customers.

Prudence to guide our business conduct.

A national presence with a history of contribution to our communities.

It shall work to…

Meet expectations through Market-based solutions and products.

Reward entrepreneurial efforts.

Create value for all stakeholders.

NBP aim to be people who…

Care about relationships.

Lead through the strength of our commitment and willingness to excel.

Practice integrity, honesty and hard work. We believe that these are measures of true

success.

NBP have confidence that tomorrow we will be…

Leaders in our industry.

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to the changing needs of the

internal and external environment


Financial Sector of Pakistan

With reference to national economy, the financial sector growth scope and significance has

increased. The financial sector of Pakistan showed great performance in 2006 and continued its

growth during the fiscal year 2007.

Financial Markets

Financial markets in Pakistan comprise of a developed money market, foreign exchange

market and capital markets, while the derivative market is still in its early days of

development. And meaningful, diversified but integrated financial reforms of the government

played a key role in the development of financial sector of the country. Its overall size

reached Rs 6.9 trillion. Market capitalization of Karachi Stock Exchange grew by 38 per cent

to reach 46 per cent of GDP and rated as one of the best stock exchange in the emerging

economies. According to SBP, the financial sector’s deposits during the past five years have

grown by 70 per cent. By the end of calendar year 2005 they reached Rs 5.10 trillion ($85

billion). It equals to 85 per cent of GDP.


Bank

Bank is a financial institution where you can deposit your money. Banks provide a system for

easily transferring money from one person or business to another. Using banks and the many

services they offer saves us an incredible amount of time, and ensures that our funds "pass

hands" in a legal and structured manner. There are also other types of financial institutions

that operate just like banks.

Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the

Renaissance by Florentines bankers, who used to make their transactions above a desk

covered by a green tablecloth. However, there are traces of banking activity even in ancient

times.

In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders

would set up their stalls in the middle of enclosed courtyards called macella on a long bench

called a bancu, from which the words banco and bank are derived. As a moneychanger, the

merchant at the bancu did not so much invest money as smerely convert the foreign currency

into the only legal tender in Rome- that of the Imperial Mint.


http://en.wikipedia.org/wiki/Florence

http://en.wikipedia.org/wiki/Renaissance

Commercial Bank

Commercial bank is the term used for a normal bank to distinguish it from an investment

bank. This is what people normally call a "bank". The term "commercial" was used to

distinguish it from an investment bank. Since the two types of banks no longer have to be

separate companies, some have used the term "commercial bank" to refer to banks which

focus mainly on companies.

It raises funds by collecting deposits from businesses and consumers via checkable deposits,

savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It

also buys corporate bonds and government bonds. Its primary liabilities are deposits and

primary assets are loans and bonds.


http://en.wikipedia.org/wiki/Assets

http://en.wikipedia.org/wiki/Liabilities

http://en.wikipedia.org/wiki/Government_bond

http://en.wikipedia.org/wiki/Corporate_bond

http://en.wikipedia.org/wiki/Loan

http://en.wikipedia.org/wiki/Time_deposit

http://en.wikipedia.org/wiki/Savings_deposit

http://en.wikipedia.org/wiki/Checkable_deposit

http://en.wikipedia.org/wiki/Deposit_account

http://en.wikipedia.org/wiki/Investment_bank

Pakistan and Banking Sector Background

Before Independence

A little earlier before the creation of country, the role of Muslims of the areas, which were

later, included in Pakistan was of no significance due to their restricted participation in the

banking sector. There was only a small bank namely Australasia Bank having a few branches

in Lahore and its suburbs. In 1942, the Australasia bank was housed in a garage of a trader of

Lahore who used to trade at a small scale with Australia during that period. However the

Muslims of the sub-continent ran the only Bank, Habib Bank, which was established in 1941.

At that time Quaid-e-Azam Mohammad Ali Jinnah expressed his desire that another Muslim

bank also be established in Calcutta which came into reality when Adamjee with the

assistance of Isphanis established Muslim Commercial Bank a few months before the

creation of Pakistan in Calcutta. When Pakistan came in to being The Habib Bank shifted its

Headquarters from India to Karachi. A few of Habib Bank's branches were already in

operation in Pakistan. The Muslim Commercial Bank also moved its headquarters from

Calcutta to Dhaka and later on to Karachi. At the time of independence, another small bank

namely Bank of Bahawalpur also started business from Bahawalpur from December 1947.

Before independence, the financial sector was in the hands of foreign banks some of them

were British by origin. The oldest bank operating from 1883 in this part of the world was the

Chartered Bank while another bank namely the Grindlays Bank which was also working

simultaneously from 1883. In order to expand its business operations, the Grindlays acquired

other small banks and merged them into the business of Grindlays. For example Allied Bank,

National Bank of India etc. was merged into Grindlays Bank. Among the contemporaries,

Imperial bank of India was the largest Indian Bank which had started its operations in 1919

which was discharging the role of a commercial banks as well as the Central Bank for India

until an independent Central Bank i.e. Reserve Bank of India was established in 1935.

However, since the Imperial Bank had the largest network of its branches all over India, it

continued to play its role as a subsidiary of the Reserve Bank of India. In the Muslim

majority areas, which was later on, became the part of Pakistan, small branches of Indian

banks were operating and soon after creation of Pakistan they shifted their branches and

headquarters to India.


At the time of independence:

At the time of independence, two major banks including Punjab National Bank at Lahore and

Comila Banking Corporation were working in the then East Pakistan. This trend was so

obvious that the total number of bank offices between June 30, 1918 and August 14, 1947

were reduced from 631 to 195 only.

During the early part of 1949 the numbers of branches of Imperial Bank of India in Pakistani

areas were more than of Habib Bank. In the early days of Pakistan, the government worked

hard left no stone unturned to establish and strengthen the banking system in Pakistan. These

efforts resulted in the establishment of State Bank of Pakistan which was inaugurated by

Quaid-e-Azam on July 1, 1948. Quaid-e-Azam flowed from Quetta to Karachi specially to

grace the occasion. Originally the State Bank was scheduled to be established in September

1948. Zahid Hussain, who was the first Governor of the State Bank devoted all his time and

energy to streamline the working of the State Bank. In normal situation, the Central Bank of a

country is only established when the commercial banking start working on sound footings.

But the circumstances forced the government to establish Central Bank and the task of

stabilizing the commercial banking was also assigned to the State Bank, which it really did.


Establishment of National Bank of Pakistan

The establishment of the National Bank of Pakistan in 1950 on the pattern of Imperial Bank

of India was yet another milestone in the banking history of Pakistan. In September 1949 the

rupee value was reduced against the Pound sterling, which was a major event in the banking

circles. Consequently Indian government devalued its Rupee against Pound Sterlings,

however Pakistan decided not to devalue its currency against Pound Sterling which resulted

in increase of Pakistani cotton and jute prices for India which affected our exports to India.

Though Pakistan had to suffer economically due to decline of exports to India, it however

gave a sense of economic independence to Pakistan. Cut in imports from Pakistan proved as a

blessing in disguise as Pakistan had to explore new exports markets for its products. However

Indian banks operating in Pakistan refused to finance Pakistani exports.

Pakistan’s 1997 banking reforms were aimed to strengthen the sources of governance and

financial discipline for the banking sector, namely bank regulators, markets, the courts and

bank owners, by enhancing the authority and the ability of the central bank to supervise banks

and enforce regulations, promoting market integration and competition, improving the legal

and judicial processes for enforcing financial contracts, and initiating corporate governance

reforms in the NCBs and DFIs. However, due to weak market conditions, the country's

deteriorating foreign investment climate, and lack of sustained efforts, on the one hand, and

the distressed conditions of these banks with high cost structures and depleted balance sheets,

on the other hand, attempts to sell these institutions have so far failed. Compared with the

situation at the end of 1996, the banking sector had improved by most benchmarks by the end

of 1999.

Privatization of Pakistan’s Banking Sector

Comprehensive reform and privatization of Pakistan’s banking sector since President

Musharraf’s administration came to power in 1999 has led to the creation of a modern and

thriving financial sector in Pakistan that is fuelling economic growth in the country. Now

boasting a lot of commercial banks, the sector has been a top destination for new foreign

investment and has diversified to provide an array of new services for customers.


National Bank of Pakistan

National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set

higher standards of achievements. It is the major business partner for the Government of

Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive

and balanced lending policies, technologically oriented products and services offered through

its large network of branches locally, internationally and representative offices.

National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance

sheet size surpasses that of any of the other banks functioning locally. It has redefined its role

and has moved from a public sector organization into a modern commercial bank. The Bank's

services are available to individuals, corporate entities and government. While it continues to

act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where

SBP does not have a presence) it has diversified its business portfolio and is today a major

lead player in the debt equity market, corporate investment banking, retail and consumer

banking, agricultural financing, treasury services and is showing growing interest in

promoting and developing the country's small and medium enterprises and at the same time

fulfilling its social responsibilities, as a corporate citizen. In today's competitive business

environment, NBP needed to redefine its role and shed the public sector bank image, for a

modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while

it has not been completely privatized like the other three public sector banks, partial

privatization has taken place. It is now listed on the Karachi Stock Exchange.

National Bank of Pakistan is today a progressive, efficient, and customer focused institution.

It has developed a wide range of consumer products, to enhance business and cater to the

different segments of society. Some schemes have been specifically designed for the low to

middle income segments of the population. These include NBP Karobar, NBP Advance

Salary, NBP Saiban, NBP Kisan Dost; NBP Cash n Gold .It has implemented special credit

schemes like small finance for agriculture, business and industries, administrator to Qarz-e-

Hasna loans to students, self employment scheme for unemployed persons, public transport


scheme. The Bank has expanded its range of products and services to include Shariah

Compliant Islamic Banking products. It has taken various measures to facilitate overseas

Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank

signed an agreement with Western Union for expanding the base for documented remittances.

More recently it has started Electronic Home Remittances Project. This project introduces

technology based system to handle inward remittances efficiently, by ensuring that the Bank's

branches keep a track of the remittance received from abroad till its final receipt.

National Bank of Pakistan has built an extensive branch network with 1250 branches in

Pakistan and operates in major business centre abroad. The Bank has representative offices in

Beijing, Tashkent, Chicago and Toronto. It has agency arrangements with more than 3000

correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange

Company Ltd, NBP Capital Ltd, and NBP Modaraba Management Company Ltd. The Bank's

joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset

Management Company (a joint venture with NIB Bank & Fullerton Fund Management of

Singapore).

The Bank's financial performance has been remarkable. In 2006, total assets are estimated at

Rs635 billion, while deposits have grown to nearly Rs502 billion. Pre-tax profit rose to Rs26

billion. Earnings per share have jumped to Rs24.01 in 2006. The increase in profit was

achieved through strong growth in core banking income. Interest income increased by Rs10

billion through growths in the loan portfolio as well as increase in spreads. Advances

increased by Rs48 billion to Rs316 billion. The Bank maintains a sound loan portfolio

diversified in nature to counter the risk of credit concentration. It ranges from providing

credit to the un-banked market segment under NBP Karobar, to small and medium

enterprises, to agricultural loans, to large corporate customers.

National Bank has earned recognition and numerous awards internationally. It has been the

recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker

Magazine, the Best Foreign Exchange Bank –– Pakistan for 2004, 2005, 2006 and 2007

Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global

Finance, Kissan Time Awards – 2005 for NBP's services in the agriculture field. It is listed

amongst the Region's largest banks and also amongst the largest banks in South Asia 2005,

The Asian Banker. It has also been presented a Recognition Award –– 2004 for having a

Gender Sensitive Management by WEBCOP AASHA besides other awards.


History of National Bank of Pakistan

In 1949 (September) U.K. devalued its currency, India followed suit but Pakistan did not.

India said we had contravened the agreement of keeping both currencies at par. We said we

had not done that, India had done it arbitrarily without consulting us. On October 3, 1949 the

two central banks were to announce the new par value of both currencies but India denied a

day earlier. India also froze our trade - balance surplus that is still an unsettled dispute. India

also withdraws the Marwari merchants who were employed annually for movement of jute

crop by financing it. There being no jute industry, prices fell sharply, foreign banks and

foreign merchants stood aside and an agrarian unrest was threatening.

Two Ordinances were, therefore, issued

1. Jute Board Establishment Ordinance

2. NBP Ordinance dated 08.11.1949

National Bank of Pakistan was established on November 9, 1949 under the National Bank of

Pakistan Ordinance 1949 in order to cope with the crisis conditions which were developed

after trade deadlock with India and devaluation of Indian Rupee in 1949. Initially the Bank

was established with the objective to extend credit to the agriculture sector. The normal

procedure of establishing a banking company under the Companies Law was set aside and the

Bank was established through the promulgation of an Ordinance due to the crisis situation

that had developed with regard to financing of JUTE trade. The Bank commenced its

operations from November 20, 1949 at six important jute centers in the East Pakistan and

directed its resources in financing of jute crop. The Bank’s Karachi and Lahore offices were

subsequently opened in December 1949. The nature of responsibilities of the Bank is

different and unique from other banks/financial institutions. The Bank act as the agent to the

State Bank of Pakistan for handling Provincial/Federal Government Receipts and Payments

on their behalf. Mr.Ghulam Farooq was chairman Jute Board and Mr. Mumtaz Hassan was

chairman NBP. Until June, 1950, NBP remained exclusively in jute operations, thereafter-

other commodities were also taken-up. After that Mr. Zahid Hussain, Governor SBP assumed

additional charge also as chairman NBP's Board of Directors and Mr.M.A.Muhajir became its

first M.D.In 1952 NBP replaced Imperial Bank of India. This arrangement was negotiated by

Mr. Mumtaz Hassan as Acting Governor of SBP.In 1962 when Mr. Mumtaz Hassan became

MD Mirpur (He had already served NBP for 10 years as its Chairman of government


Director), the number of branches had increased from 6 to 239 and deposits from Rs.5 crore

(50 million) to 106 crore profit from 3 million (3 Lac) to 21 million (2.1. crore) and the staff

increased from 380 to 7091, as compared to 1949-50. In Dec. 1966 its 600th branch was

opened raising the deposits to 2.31 billion and staff to 14, 963. Up to 1965, the shareholders

had received 225% of their original investment. Now it has more than 21549 employees 1537

branches and Rs.208283 million deposits.

The Bank has also played an important role in financing the country’s growing trade, which

has expended through the years as diversification took place. Today the Bank finances

import/export business to the tune of Rs.62.17billion, whereas in 1960 financing under this

head was only Rs.1.54billion.The field is being de-layered to improve customer services and

enable faster decision making. As a result of this de-layering zones have been eliminated and

the numbers of regions have been increased. Organizational hierarchy at the regional level

has been restructured and operational and business activities have been completely separated.

This separation will improve communication, decision making and promote teamwork. For

the third consecutive year, the Bank is recognized as the best Bank in Pakistan for the year

2004 by the prestigious periodical. “The Banker” UK (a subsidiary of Financial Times

Group)

“We’re expanding horizons, reaching out,

Being there and bringing something for everyone.

After all, we are The Nation’s Bank”.


Branch Network of NBP


Overseas Branches

16 Overseas Branches 4 Representative offices 1 Subsidiary 1 Joint Venture

Domestic Branches

29 Regional Offices 1190 Branches 130 Online Branches 4 Subsidiaries

TYPES OF BRANCHESThere are a lot of different branches of National Bank of Pakistan. We explain them one by

one.

o There are Main branches in every city. In one city there is only one main branch, it is

directly under the zonal office.

o Then there are Commercial branches these are the ordinary branches and are in the

commercial areas such as the Mall Road Branch.

o The Industrial Branches are exclusively in industrial zones.

o There are also Residential Branches These are exclusively in residential colonies.

o Another type is the Mixed Branch such as civil secretariat branch. Every kind of

work is done.

o There are also Project Branches created for specific purposes i-e the project and are

at the site.

o Another unique type is the Model Branch. No other bank in Pakistan has these. In

these branches all the work is done by the officers. Even the officers sit on the

counters. Model Branches are in Karachi, Lahore and Islamabad.

o There is one special type known as Drive in Branch There is one in Karachi known

as Kahkashan branch. People go to the bank in the car, hand over the check and get

the money sitting in the car.


Management Hierarchy


President

Board of Directors

Member Executive Board

Regional Chief

Zonal Chief

Manager

NBP Services/ProductsBank works for the connivance of the customer & this connivance travels to the customer

through the services offered by the bank.

NBP offers these types of services to the customers

1. Demand Drafts (DD)Demand Draft is the services offered by the National Bank of Pakistan, which is most

convenient, safe, speedy and reliable way to transfer money. Customer’s purchases National

Bank of Pakistan’s 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, and also can use

it in other banks of Pakistan to transfer its money from one account to another. It is more

reliable way, when a person has its account in the National Bank of Pakistan and he/she

wants to transfer it any other bank of Pakistan, whether it is in the same city or not.

2. MAIL TRANSFERS (MT)Mail transfer is also a way to transfer the money safely from one place to another. Any

customer can move his/her money safely and quickly using NBP Mail Transfer service. And

National Bank of Pakistan also offers the most competitive rates for providing this service.

Obviously for any facility/activity performed by the bank it charge some amount from the

customer, but as compare to the other banks National Bank of Pakistan offers this service in

very convenient price to facilitate the customer more.

3. PAY ORDERNBP provides another reason to transfer your money using its facilities. National Bank of

Pakistan’s pay orders is a secure and easy way to move the money from one place to another.

And, as usual, it has charges for this service, which are extremely competitive.

But the main difference in Demand Draft and Pay Orders is that Demand Daft can be used in

type of bank in Pakistan whether Pay Orders only can be used in the National Banks of

Pakistan, whether they are locating anywhere in the Pakistan.


4. TRAVELER'S CHEQUESAgain the Traveler’s Cheques are the sources to transfer the money but this facility is mainly

using to facilitate the travelers. Means they can travel without any fear of theft or loss during

the traveling.

FEATURES OF TRAVELER CHEQUES

o Negotiability: Pak Rupees Traveler’s Cheques are a negotiable instrument

o Validity: There is no restriction on the period of validity

o Availability: At 700 branches of NBP all over the country

o Encashment: At all 400 branches of NBP

o Limitation: No limit on purchase

o Safety: NBP Traveler’s Cheques are the safest way to carry the money.

5. LETTER OF CREDITNBP is committed to offering its business customers the widest range of options in the area of

money transfer. If the customer is a commercial enterprise then the National Bank of

Pakistan offers the Letter of Credit service, which is just the important service for which the

customers were looking for. With competitive rates, security, and ease of transaction, NBP’s

Letters of Credit are the best way to do the business transactions.

Business people/customers do their lot of transactions daily, which were in-between of their

customers or suppliers. Means businessmen feel it a most convenient way to transfer their

money regarding to their business.

6. COMMERCIAL FINANCEObviously a bank play a very important role in the economy of Pakistan, but by providing the

convenient products and services and by providing finance to the people of Pakistan it is

playing a great role. Commercial financing provided by the National Bank of Pakistan is

great facility. Through which its dedicated team of professionals truly understands the needs

of professionals, agriculturists, large and small businesses and other segments of the

economy. They are the customer’s best resource in making NBP’s products and services

work for them. Through this facility the bank is making dreams of people a reality.


7. FOREIGN REMITTANCESTo 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.

8. HOME REMITTANCES

The existing system of home remittances has been revised/significantly improved and well-

trained field functionaries are posted to provide efficient and reliable home remittance

services to nonresident Pakistanis at 15 overseas branches of the Bank besides United

National Bank (the joint venture between NBP and UBL in UK)., and Bank Al-Jazira, Saudi

Arabia.

Zero Tariff : NBP is providing home remittance services without any charges.

Strict monitoring of the system is done to ensure the highest possible security.

Special courier services are hired for expeditious delivery of home remittances to the

beneficiaries.

9. SWIFT SYSTEMThe SWIFT system (Society for Worldwide Interbank 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-PKKA. All NBP overseas branches and overseas correspondents (over 450) are

drawing remittances through SWIFT.

Using the NBP network of branches, you can safely and speedily transfer money for our

business and personal needs.


10. Other Services

In addition to acceptable standard general banking services, following services are also being

offered at the NBP:

o Letter of Credit Facility

o Handling of Remittances

o Issuance of Bank Drafts and Pay Orders.

o Collection of Export Bills.

o Collection of Local Bills.

o Government Collections

o Utility Bills Collection


NBP Retail Products

i. NBP Premium Aamdni Monthly Income Scheme

o Amount of investment required from

o Rs. 50,000/- to Rs. 5,000,000

o Investment period is 5 years

o Free Demand Draft, Pay Order and NBP Online Aasan

Banking

o Free Cheque Book / NBP Cash Card (ATM + Debit)

o Profit paid every month as follows:

PeriodProfit Rates

1 year7.50%

2 years8.50%

3 years9.50%

4 years10.50%

5 years11%

o Financing facility available up to 90% of the deposit value

o Premature encashment will attract penalties

o Zakat and withholding tax will be deducted as per rules


ii. NBP Premium Saver

Minimum saving balance of Rs. 20,001 and a maximum

balance of Rs. 300,000

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

Earn up to 7.25% p.a.

iii. NBP Karobar - President's Rozgar SchemeIf a person is aged between 18 and 45 years, he could be eligible for easy

financing for self-employment in the categories below:

o NBP Karobar Utility Store

o NBP Karobar Mobile Utility Store

o NBP Karobar Mobile General Store

o NBP Karobar Transport

o NBP Karobar PCO

o NBP Karobar Tele-Centre

Step-By-Step Procedure

o Customer has to visit any NBP branch to obtain loan application form and scheme

details. Application form could also be downloaded from the NBP web site. Photo

copy of the form will also be accepted. Each form will cost Rs. 5. In case of

photocopy or down-loaded form, form fees will be charged at the time of

application submission

o Branch will provide details of the scheme along with the required documents to be

submitted with the application form

o Then Customer will submit the application form along with all the required

documents as well as the verification and the processing fees


http://www.nbp.com.pk/Karobar/index.htm

o The application form and all the relevant papers of the customer will be checked

by the Branch staff and if found complete, application processing will commence

o If the case is approved then the customer will be informed accordingly and will be

advised to deposit the Down payment and fulfill all the other product specific

formalities

o Upon fulfillment of all the details and approval of the loan by the competent

authority, Purchase Order in favor of vendor will be issued and a copy of the same

will be given to the customer

o Delivery of the financed asset will be made directly to the customer by the NBP

selected vender

iv. NBP Saibaan – House Financing

Following Product Items are offered under this scheme:

o Home Finance Home Renovation

o Home Construction

o Purchase of Land + Construction

o Balance Transfer Facility (BTF)

v. NBP Advance Salary

In January-2003, National Bank of Pakistan has launched a

unique product, ‘NBP-Advance Salary’. Currently this product is for fixed-income permanent

employees of Federal & Provincial Government, Semi-Government, Autonomous, Semi-

autonomous, local bodies and other Government organizations. The product is purely cash

flow based and offers its holder to avail 20 (twenty) net salaries in one go to be repaid in up

to 60 (sixty) months. With no collateral, insurance or requirements, Advance Salary provides

rapid disbursement in a short turnaround time.


vi. NBP Cash Card

NBP Cash Card is a 24-hour direct access ATM/Debit card to

customer’s bank account, which lets him/her pay directly from him/her account as an

alternative payment method to cash. The transaction is authorized and processed by entering

PIN. The NBP Cash Card holders are able to transact at any of the 4000 + Merchants where

Orix logo is displayed and can withdraw cash from NBP, 1-Link & M-NET ATM’s across

the country.

Advantages

o Customer won’t need to carry a lot of cash with himself/herself every time he/she

goes out.

o Secure and Safe transaction.

o Account Information on tips (like: Mini Statement, Balance Inquiry, Utility Bill

Payment etc.)

o Enable To Withdraw Cash From 1-Link ATMs / MNET ATMs.

o Enable to Make Purchases from Around 4000 POS (Merchants) Countrywide

including 2500+ POS in Karachi.

o No Card Issuance Fee for first 12 Months

vii. NBP Investor Advantage

It is a Financing Facility for Retail Investors with following Features

o Comfortable and secure environment for trading

o NBP financing at very easy terms requiring minimum documentation

o Minimum turnaround time

o No security requirement from the customer except for the customer's equity

o Customer's equity freely available for investment.

o Equity acceptable in cash or approved share.


http://www.nbp.com.pk/cashcard/index.htm

http://www.nbp.com.pk/Margin/Index.htm

viii. NBP Cash n Gold

With NBP's Cash n Gold, customers can meet their need for

ready cash against their idle gold jewelry.

This product is available with following features:

o Rate of mark-up 13% p.a.

o Facility of Rs. 7,000 against each 10 gms of net contents of gold

o No maximum limits of cash

o Repayment after one year

o Roll over facility

o Only gold ornaments acceptable

o Weight and quality of gold to be determined by NBP's appointed schroffs

o No penalty for early repayment

ix. NBP Online"NBP Online" offers following services:

o Balance Enquiry

o Statement of Account

o Cash withdrawal through cheque

o Cash deposit to own and third party account

o Transfer of funds to own and third party account

Customers can avail services from NBP’s Online Branches located in 30 cities:

Karachi Hyderabad Mirpur (AJK) SargodhaIslamabad Quetta Gujrat SukkurRawalpindi Lahore Abbottabad JhelumGujar Khan Burewala Bahawalpur Wah Cantt

Sailkot Multan Peshawar D.G. KhanGujranwala Muzaffarabad Kohat D.I. Khan


http://www.nbp.com.pk/CashnGold/index.htm

Sheikhupura Faisalabad Larkana JhangMardan Sahiwal


x. NBP Help line - CALL CENTER

In an era of heightened customer demands and increased competition, Call Centers have

become a crucially important mechanism to cost-effectively serve customers and sell

products. National Bank of Pakistan realized that it needed not only to establish its Call

Center by providing a one-stop service for all customer enquiries related to the bank's

products & reengineer its delivery processes, but also to ensure that it provides the same level

of out-standing service across channels to give a consistent customer experience. To meet this

objective, the bank has launched a Customer Relationship Management system (CRM)

following a proper intensified path & Turnaround Time nationwide for resolving Customer

Complaints with solutions deployed at all its Regional Head Quarter in the country that are

being used by millions of users that use self-service applications in addition to the live agent

services.

NBP has taken a step towards improving customer services by establishing a state of the art

Call Center with a Help Line Toll Fee Number 0800-80080 working in two shifts from 8:30

am till 10:30 pm to provide instant service to all the existing & prospective customers on all

the NBP products being offered by the bank specially NBP Karobar. Presently, the Call

Center is receiving more than 1500 calls per day for resolving customer based product

enquiries and complaints.



http://www.nbp.com.pk/Pakremit/index.htm

xi. NBP Pak Remit

Pak Remit is an Internet based Home Remittance Service. This service is available to U.S.

residents for sending money to their family and friends in Pakistan. One must have a valid

US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit funds

through this channel.

Remitters in USA can log on to our user friendly website, www.pakremit.com and easily

remit funds to Pakistan from the comfort of their homes, in a matter of minutes.

The service is fully secure with advance encryption application and is available for use 24

hours a day, 7 days a week. Fees and exchange rate have been set at competitive levels and

the remitters have the ability to track delivery of funds as well.

Process

o Remitters log on to www.pakremit.com and after completing the registration

process, are able to remit funds. The whole process takes a few minutes.

o Funds in Pak Rupees can be sent to beneficiaries, having an account with any

bank in Pakistan, including NBP. While funds are credited directly to

beneficiaries maintaining accounts with NBP, a pay order or demand draft is

couriered to other banks for their customers. Pay order or demand draft can also

be couriered directly to the beneficiary’s office or home, if requested by the

remitter.

o Funds in US Dollars can be sent only to a Beneficiary maintaining a US Dollar

account with one of NBP’s Foreign Exchange Branches. Click here for details of

NBP Foreign Exchange Branches.


xii.NBP Protection Shield

Insurance Coverage, In case of Accidental Death (Including death due to *Riots, *Strikes,

*Civil commotion, *Acts of Terrorism and Natural Calamities like Flood, Earth Quake,

Cyclones etc).

Coverage of Rs. 200,000/- for Rs. 20/- per month

Definitions: *provided the insured is not directly involved in these activities

"Accident” means unintentional, unfortunate or a harmful event by chance or apparent cause.

“Accidental Death” means death due to accidental injuries, but not illness.

“Insured Person” means a National Bank of Pakistan PLS account holder, aged between 18

years and above, and whose premium is deducted & details are reported to the selected

insurance company by NBP.

“Policy” means Group Personal Accident Policy dated 26/09/05 executed between NBP and

Insurer.

“Principal Sum” means the amount stated in the Policy’s Schedule of Benefits as respects

each Insured Person.


MISCELLANEOUS

i. L OCKERS

National of Pakistan also provides lockers facility in the country. The lockers issued only to

the depositors. No lockers are issued to any unknown person. The dual control system is used

for lockers. The officer has master key to apply on the locker but he cannot open the locker of

any person. The locker holder provides the bank has specimen signature. Whenever the

locker holders come to open the locker, his signatures are verified by the officer and then will

be able to open his locker. If the key of the locker is lost company providing these lockers

breaks the locker and new lock is fitted in its locker and lock is destroyed in the presence of

the locker holder and bank charges RS 1200 for that. In case the locker holder dies, the court

opens his locker in the presence of his heir as mentioned in his will or and his belongings are

given to them and the locker is closed.

ii. NBP CASHCARD

NBP Cash Card is a 24-hour direct access ATM/Debit card to your bank account, which lets

you pay directly from your account as an alternative payment method to cash. The transaction

is authorized and processed by entering PIN. The NBP Cash Card holders are able to transact

at any of the 4000 + Merchants where Orix logo is displayed and can withdraw cash from

NBP, 1-Link & M-NET ATM’s across the country. The followings are the main features of

this product:

o You won't need to carry a lot of cash with you every time you go out.

o Secure and Safe transaction.

o Account Information on tips (like: Mini Statement, Balance Inquiry, Utility Bill

Payment etc.)

o Enable To Withdraw Cash From 1-Link ATMs / MNET ATMs.

o Enable to Make Purchases from Around 4000 POS (Merchants) Countrywide

including 2500+ POS in Karachi

o No Card Issuance Fee for first 12 Months



iii. INTERNATIONAL BANKING

National Bank of Pakistan is at the forefront of international banking in Pakistan which is

proven by the fact that NBP has its branches in all of the major financial capitals of the

world. Additionally, the Bank has recently set up the Financial Institution Wing, which is

placed under the Risk Management Group. The role of the Financial Institution Wing is:-

o To effectively manage NBP's exposure to foreign and domestic correspondence

o Manage the monetary aspect of NBP's relationship with the correspondents to support

trade, treasury and other key business areas, thereby contributing to the bank's

profitability

o Generation of incremental trade-finance business and revenues

Core Business of National Bank of Pakistan

Since NBP is a commercial bank, it performs a variety of functions. Like other commercial

banks, NBP is engaged in financing international trade. Its other major functions include

receiving deposits, advancing loans and discounting of exchange. The functions performed

by NBP are:

1. Accepting DepositsThis function is important because banks largely depend on the funds deposited with them by

its customers. Deposits are of many types:

i. Current depositsCurrent deposits are also called demand liability on current deposits. NBP pays practically no

interest on current deposits. Businessmen usually open current accounts. In NBP current

account can be opened with a minimum amount of Rs.500/-.

ii. PLS saving depositProfit and loss sharing deposits (PLS) are also called checking accounts. One can deposit and

draw money easily. Profit on PLS is calculated every month but paid after six months. PLS

account can be opened with a minimum amount of Rs.500/-


iii. PLS term depositsFixed term deposits are deposits with the bank for certain fixed period before the expiry of

which they cannot be withdrawn unless giving due notice. In this case the rates of profit will

be different depending upon the time period.

2. Discounting bills of exchangeDiscounting of bill is practically speaking lending for exchange at their market rate i.e. it

pays to holder of the bill an amount equal to the face value after deducting interest at the

current market rate for the period. This bill has to be mature. This is the common way used

for keeping a part of assets of the bank in a liquid form.

3. Agency serviceNBP also provides best and unique service to its valued customers. NBP provide the

following agency services to the customers:

i. Collection of dividendsAs NBP deals with the purchase and sale of various types of securities, therefore NBP also

provide dividend or interest earned on share or bonds or invested money.

ii. Collection of Cheques In the collection and payment of Cheques, bills and promissory notes etc. National bank of

Pakistan acts as an agent for its customers.

iii. Acting as an agentNBP also acts as an agent correspondent or representative for its customer at home or abroad.

3. Unmatched Banking Facilities

o Deposit security, Guaranteed by Government of Pakistan.

o Highest rates of return to attract the savings.

o Lowest rates on exports and other borrowings.


o Largest contribution towards Government and Semi-Government requirements.

o Agents of the SBP handling Treasury Functions, receipts of Taxes & other

Revenues.

o Handling of salaries & pensions of federal/provincial/defense personnel.

o Utility Bills collections.

o Hajj arrangements.


DEPARTMENTS OF NBP

General banking is one of the major departments of National Bank of Pakistan. It consists of

sections, which are following

1. Account opening section.

2. Deposit section.

3. Clearing section.

4. Remittance section.

1. ACCOUNT OPENING SECTION

HOW TO OPEN AN ACCOUNT

There are certain formalities which are to be observed for opening of a current or saving

account with a Bank. These formalities in brief are as under

FORMAL APPLICATION

The customer is to filling "Account Opening Form 11 It is a formal request by a customer to

the bank to allow him to have and operate the current or saving account.

OBTAINING INTRODUCTION

The bank before opening, and account obtains introduction of the customer from old

customer, responsible person etc.

SPECIMEN SIGNATURE When the Banker is satisfied about the integrity of the customer, he agrees to openthe

account. The Banker obtains the specimen signatures of the customer on thesignature book or

on card.


MINIMUM INITIAL DEPOSIT

In Pakistan the current account can be opened with a minimum of Rs. 500/- and PLSSaving

Account with a minimum of Rs 100/- These amounts are also the minimumbalances to be

maintained by the account holders with the Bank.

OPERATING THE ACCOUNT When an account is opened in a Bank, the Banker gives to the customer.

i. Pay in slip book.

ii. Cheque Book and pass book with a view to operate it.

PRECAUTIONS IN PREPARING THE PASS BOOK

The Banker should be careful in preparing the pass book However, the customer Himself

should.

i. Send the pass book for making entries and also periodically check them.

ii. He should also see that the entries are initialed by the accountant.

iii. The customer should verify the entries with own books of account.

iv. In order to safe guard the secrecy of the account; the customer should receive

v. The pass book in closed cover.

WITH-DRAWL

Withdrawal is made on cheques supplied by the Bank. A new cheque book is issued only on

receipts of the requisition slip attached to the cheque book issued previously and this

presented along with the depositor pass book for entire against cheque book challan. Cheque

book is issued on discretion of the branch manager.


INTEREST

The current rate of interest allowed on deposit in saving Bank account is ascertain that the

Bank. This rate is subject to change. The amount of interest is calculated for each calendar

month on the lowest balance at credit of an account between the close of the sixth day of a

month and the end of the month and only on every complete sum of ten rupees.

Every account is made up half yearly to 30th June 31st December, and the interest calculated

as above is added to the balance of each account as on these dates.

TRANSFER OF AN ACCOUNT

Account can be transferred to any other branches of N.B.P. free of charge. If adepositor

wants to transfer his account, he presents his pass book personally orsends it to Bank and

writes an application for the transfer of an account.

CLOSING OF AN ACCOUNT

A depositor willing to do, his account must present his pass book in order that with drawls

and the amount of interest due on the account is entered therein and final balance stuck. This

balance is then paid to the depositor and his receipt is taken, the pass book is canceled,

unused cheque forms on hand are also surrendered at the same time.

SECRECY

The secrecy of depositor’s account is the. Responsibility of every official engaged in the

Bank service.

MONEY DEPOSITED OR DRAWN BY POST

When money is sent by post for deposit, the pass book and a letter starting the amount of the

deposit and the number of the account accompany it. When a depositor wishes to withdraw

money by post he must forwards his passbook with a letter starting the number of his


account, the amount to be drawn and either the money is to be remitted by money-order or in

currency notes registered.


TYPES OF BANK ACCOUNT

i. Saving Account

Saving Account is that account in which customer puts his surplus money which he saves

from his daily expenditure. The account can be operated by depositing a minimum cash of

Rs. 5/-. Small percentage of interest is allowed on the balance of this account.

ii. Current Account:

The current account is that one which the customer draws his daily cheques and is normally

operated by the Business-men. It can be operated by minimum amount of Rs. 500/- Any

number of cheque amounting undue minimum balance limit can be issued by the account

holder for withdrawal or for payment. No interest is allowed on this account.

iii. Join Account

A joint account occurs when two or more than two customers have one account. The parties

to a joint account are considered in law as they are one person.

iv. Profit and Loss Sharing Account

This can be operated by a person, firm or organization by depositing Rs. 100/- or above. The

holder of this account will get profit of his amount, or he will bear the loss as the case may

be. So an individual is equally participant in profit and loss.The holder of account can

withdraw up to Rs. 15,000/- per month is eight withdrawals, in case of higher withdrawal,

seven day prior notice is necessary. This account is operated under interest free system.

v. Fixed Deposit Account

In this account an amount is deposited into the Bank for a fixed period of time. The fixed

period may be three months, six months, one year, two years, five years and more. The Bank

allows a higher rate of interest for larger period At the time of operating on account the Bank

issues deposit certificates for the period and amount. The account holder cannot withdraw his


amount before the specified period, but the same Bank will allow loan against that certificate.

Bank is liable to give interest on this account on maturity date.

2. DEPOSITS SECTION

There are two types of deposits i.e. current and saving. There are different forms present in

the section of or deposits.

i. Current account form.

ii. Saving account form.

iii. Private or individual form

iv. Private firm account form

In the above mentioned forms, the bank makes an agreement with his customers.

3. CLEARING SECTION Every Bank performs the paying and receiving functions. Cheques are collected which are

drawn up to Banks for customers. Similarly the cheques drawn on different Banks and

deposited by Banks own customers for collection within the city is known as clearing The

functions of receiving and paying is mostly done through the clearinghouse. A clearing house

can be defined as "AA place where that representatives of all Bank get together to settle the

receipts and payment of cheques drawn on each other" Clearing House provides the facility

which can hardly be dispensed with especially, in case of crossed cheques.

There are two main types of clearing.

i. Outward clearing

ii. Inward clearing


OUTWARD CLEARING:

It includes those cheques and other instruments which are sent by the Bank to the Banks for

payment on behalf of its own clients. Cheques are sent to clearing house thorough local main

branch. A delivery message from the local main branch comes to every branch at a fixed time

to pick its outward clearing or outward returns as the case maybe.

Outward Clearing at Branch

i. Account number of payee/endorsee is written on the back side of the cheques.

ii. The instrument and the paying in slips are separated.

iii. The instruments are sorted I Bank-wise and branch wise.

iv. Schedules are prepared.

v. Jotting of all the schedules are taken in the clearing House statement. Amount of the

cheques in written in the "Delivered" and to pay column.

vi. After balancing the outward clearing, the pay in slips are released to C.D. department.

vii. After balancing, a transfer debit voucher is prepared.

viii. The instrument schedule. etc. are delivered to the messenger from the main branch

INWARD CLEARING

The cheques drawn are called inward clearing drawn on National Bank through its

representatives on the Bank presented by other Banks for payment it includes those cheques

and other instruments of Pakistan branches which other Banks present at the clearing house.

Inward Clearing At the Drawn Branch

i. Numbers of instruments noted in the schedules are verified immediately on receipt.

ii. The amounts of all the instruments are jotted down and totaled. If should be equal to

the amount mentioned in schedule from the local main branch.

iii. The amounts are debarred to the relevant accounts if otherwise in order.

iv. The IBCO is prepared crediting the amount of the main branch.


v. If there is any return, that is deducted from the total and IBCO prepared for the

remaining amount.

TYPES OF CHEQUES COLLECTED BY CLEARING SECTION

TRANSFER CHEQUES.

These are the cheques which are collected and paid by same branch of N.B.P. For example

Mr. Ali is a customer of N.B.P. of CITY branch and draws a cheque in favor of Mr. Hussain

who is also the customer of the same branch.

TRANSFER DELIVERY CHEQUES.

The cheques which are collected and paid by two different branches of a Bank situated in the

same city. For example a person draws a cheque on N.B.P. main branch, Lahore in favor of

another person who maintains an account with N.B.P.model town branch, Lahore .

CLEARING CHEQUES

When the payee/endorse and the drawer of cheque maintains account with different

Banks, the collection Bank in any one of the following methods:-

i. It can collect cash by sending its representatives with the cheques to each of the

paying bank is no so much appropriate

ii. The bank maintain account with the paying bank

iii. The cheques are now being exchanged by the help of NIFT and this is the most

efficient method of collection and paying of cheques

FUNCTIONS OF CLEARING SECTION IN A BRANCH i. To accept transfer, transfer delivery and clearing cheques from the customer of the

branch and to arrange for their collection.

ii. To arrange payment of cheques drawn on the branch and gives for collection to any

other branch of N.B.P. or any other member or such member of local clearing house.

iii. To collect amounts of cheques drawn on members of the local clearing house sent for

collection by N.B.P. branches not represented at the local clearinghouse.


PROCEDURE FOR CLEARANCE OF CHEQUE

The customers are provided with the copes of pay4n-slip, whenever the customer wants to

deposit any cheque, he fills in the pay in slip himself and hands it over the counter along with

the instrument.

4. REMITTANCE SECTION

Remittance means transfer of money from one place to another place. It is of two kinds.

i. Inland remittance.

ii. Home remittance.

INLAND REMITTANCE

An inland remittance means a transfer of money payable at a certain place within the country.

Inland remittances can be classified as under

i. Within locality.

ii. Outside locality.

WITHIN LOCALITY

When a branch situated in Lahore is required to send drafts to any other branch situated in the

same city the process is known as within locality. For example N.B.P Main Branch, Lahore

sends any draft to N.B.P. Moon market Lahore.

OUTSIDE LOCALITY

Outside locality is an important type of inland remittances, which means the transfer of

money payable outside the city. For example, N.B.P. Main Branch Lahore sends any draft to

a Branch situated at Lahore.

It is commonly done through the following three means:-

i. Telegraphic transfer (T.T)

ii. Mail Transfer (M.T)

iii. Demand Draft (D. D)


TELEGRAPHIC TRANSFER

In telegraphic transfer, the Bank takes commission and telegram charges from the sender. A

receipt is issued to the sender for the value received.

The Bank itself transfer the funds to the drawee branch though a coded message in telegram,

confirmatory of which is also sent through routine post mentioning all details. All bank

Branches have been provided with their code books name Bank Keys Code Book where from

the coded message is agreed by the drawee branch T.T. can be sent open, which may be paid

in cash in drawee branch, or may be directly creditable to relevant account.

MAIL TRANSFER (M.T.)

The Money can be remitted through this means also. In this case the payable amount at the

drawee branch can only be transferred to an account; amount cannot be paid in cash. Other

procedure is same as T. deposit of money at sending branch Difference is only of postage

and. telegram charges. The M.T. which in its self is an advice also is sent by registered post,

while T.T. is sent through telegram.

DEMAND DRAFT (D.D)

Demand draft is a written order by a branch of a specified Bank, drawn on another branch of

the same Bank to pay a certain sum of money only to or to the order of the Payee. Demand

drafts are purchased by the clients and after receipt of money Bank issues and delivers the

D.D. to the purchaser, who himself sends it to the payee. In D.D. the Banks do not recover

postal charges as it is payable by the purchaser. The Bank, after delivery of D.D. to the

purchaser also sends its own advice called IBCO (Inter Branch Credit Order) to the drawee

branch mentioning therein all details of issued draft.


MY INTERNSHIP PROGRAMME

DURING TRANING IN NATIONAL BANK OF PAKISTAN (Satellite town Branch, Gujranwala)

WORK DONE BY ME AT THE BRANCHMajor activities performed during my internship program are as follows:

1. ACCOUNT OPENNING DEPARTMENT:In this department, I gain the practical knowledge about opening account. This department

deals with opening current and saving account for its customers and all matters regarding

thereof. The customers opening current and saving accounts can be categorized as following.

o Individual

o Firm

o Company

o Trust

o Staff

o Others

OPENING AN ACCOUNT

In order to open an account, first of all the customers have to fill a form prescribed by the

bank. The person is required to bring some reference or introduction for opening the account.

Introducer may be the person who has any account with NBP.

Some important information regarding introducer e.g. the name and account number of the

introducer is written on the space provided on the specimen signature card. Then in order to

find out whether he is a true introducer or not, a letter is sent to him thanking him for this

introduction so that anything wrong may come into notice. There are different requirements

for different types of accounts and accountholders.


DEPOSITSThe procedure undertaken upon receiving deposits from the customers is as follows:

o Examining the deposit slip to ensure that the name and the account numbers are

clearly indicated.

o Counting the cash and cheques and agree the total with the amount on the deposit slip.

o After that the pay in slip is validated for cash transaction and transfer and clearing

transfer as appropriate before the counterfoil is handed over to the customer.

o Cheques signed by directors, partners or employees of a company, drawn in favour of

them and credited in their account in the bank are to be scrutinized.

WITHDRAWALSCheques can withdraw amount. The withdrawals can be made only at the branch where the

account is maintained. The officer under his full signature authorizes all cash withdrawals.

No third party withdrawal is permitted. In current account, the bank does not offer any

interest. We can deposit or withdraw any amount during banking hours.

ISSUANCE OF CHEQUE BOOKThe accountholders request for the new chequebook by presenting the requisition slips to the

concerned office. His signatures are verified before giving him a new chequebook. The

presence of the accountholders is compulsory to get a new chequebook. But if he sends a

third person to get his chequebook then the procedure is as follows;

o An authority letter is given to the third party by the accountholders.

o The accountholders verify the signature of the third person on that authority letter.

o The bank officer gets the signature of that third person to confirm whether he is the

same to whom the accountholder has sent.

o The bank issues the new cheques book and authority letter is kept buy the bank.


2. CLEARING DEPARTMENTIn this department, I have worked for two weeks. Main branch receives the cheques from all

of its branches and makes the lots of these cheques again. Main branch sends these cheques

to the State Bank of Pakistan where a clearinghouse exits. In this clearinghouse the

representatives receive their cheques and go back to their bank's main branches. Then the

main branch sends these cheques to their relevant branches where the validity of these

cheques is verified and the accounts of the relevant clients are affected.

The statement of clearing was submitted before 1.00 P.M. daily. The whole procedure of

clearing is completed within two days.

3. REMITTANCES DEPARTMENT:I worked in this department for one week. This department deals in transfer of money from

one place to another or country by:

o Demand drafts

o Mail transfer

o Telegraphic transfer

In this department internees are advised only to observe the working of transfer of money

from one place to another place of the country by the above modes of transferring money.

During my stay in this department I observed that how demands draft be issued. The

procedure is as follows.

First the bank receives a written request from the customer to issue a bank draft. The written

request is either in banks standard form or separate paper signed by the applicant enclosed

with cash or cheques covering the amount of the draft and other charges of the bank.

While issuing a bank draft it is necessary that the draft should be free from alternations. All

the details must be written clearly in ink. After issuance a demand draft it is handed over to

the applicant and its advice containing the particulars of the draft is sent to drawer branch

with its necessary information and payment of the draft is making on its presentation.


4. BILLS COLLECTION DEPARTMENT:

I spent one week of my training in bills collection department. Here I collected utility bills

like gas, electricity, water and telephone etc.


SWOT Analysis

Strengths

o Western union facility: National Bank of Pakistan is only one bank which has the

facility of Western union. In this particular scheme money is transfer in Pakistan from

abroad. This is the fastest way to money transfer. You can receive the money from

bank to see the name and password of particular client.

o ATM finder: There is also strength of NBP that they are found the ATM. They now

provide this facility to the customers.

o Government’s bank: In commercial banking system NBP is only the government

bank. They make their policies according to the government’s rules and regulations. It

enjoys its position in the market of banking system in Pakistan. Government of

Pakistan also facilitating the National Bank of Pakistan.

o Customer satisfaction: Because of government’s bank, it is enjoying the customer’s

satisfaction. Customers feels secure their money in NBP.

o Online banking: There is also strength of NBP that 130 branches are online. It helps

the speedy services giving to the customers. There is also help in checking the

balances and daily transactions just at one key press.

o Employee’s loyalty: Employees are very much loyal to NBP. Employee’s turnover is

very low in NBP. Very few employees are leaving the jobs in NBP. So it is very big

strength that your employees are loyal to your organization.

o Wide area of services: They provide the wide area of services. They offer no. Of

services relating to the banking system like, pension to retired government employees,

traffic challans, fees received of AIOU, farms of AIOU, utilities bills, deposits, sales

tax , withholding tax, property tax, and various loan schemes.

o National Bank the Nation’s Bank: State Bank of Pakistan is government owned

bank that is why Pakistani nation has a trust on the bank that their deposits are

secured. Due to this reason the deposits of the banks are increasing with the passage

of time


o Agent of State Bank of Pakistan National Bank of Pakistan also works as an agent

of State bank of Pakistan in those cities where SBP branches are not working.

o Agency Arrangements: National Bank of Pakistan is enjoying with deposit of

different Govt. organization like Pakistan Railways, PIA, WAPDA, Sui-gas due to

agency arrangements.

o Deposits: National bank of Pakistan is the largest commercial bank of the country and

has Total Deposits of Rs. 362.87 billion and becomes the first bank to cross the

deposit of Rs. 350 billion.

o Profitability: The pre-tax profits of NBP have gone up to Rs. 6.05 billion.

o Corporate Branches: National Bank of Pakistan is now the biggest financial

institution with assets totaling over Rs.310 billion with 1428 local and 23 foreign

branches. The bank is the higher financer in agriculture and commodity operation

sector.

o Corporate Branches: National Bank of Pakistan is now the biggest financial

institution with assets totaling over Rs.310 billion with 1428 local and 23 foreign

branches. The bank is the higher financer in agriculture and commodity operation

sector.

o Collection of Cash from Shrines: Cash collected from different shrines is also

deposited in National Bank of Pakistan.

o Comprehensive Range of Financial Products: In order to facilitate the customers,

NBP is offering the comprehensive range of financial products which are as follows:

i. Credit cards

ii. Foreign exchange bearer certificates

iii. National bank daily account

iv. Traveler cheques etc.

o Investing in Capital Market: NBP has decided to diversify the fund base by

investing in capital markets not only in Pakistan but also in the foreign countries.


Weakness

o Lack of communication between employees: During the internship in NBP I found

the problem of lack of communication between the employees and management. They

have not very much understanding with each other and not share the work of each

other.

o Punishment is not very strong for employees: Punishment threat is not very strong

for employees. Some employees are not very professional in their field but top

management not takes the action against such employees.

o Public dealing is not very effective: Public respect is not very effective in NBP.

Employees are not taking care of the customers, especially in pension and bills

department.

o Staff shortage: There is also weak point for NBP that staff is very short and more

staff is required to meet the needs of the branch work. They help from internees.

o Lack of respect of seniors: They are not a healthy sign for NBP that respect of

seniors is not up to the manners. Juniors try to avoid the seniors and no take the help

from them.

o Lack of Implementation of Rules and Regulations: Because NBP is a govt. owned

organization so there is a lack of implementation of rules and regulations.

o Poor Working Conditions: Despite, cultural change program the working condition

of the NBP is not up to standard.

o Recruitment Policy: In NBP, employees are recruited on the basis of favoritism or

through other tools of corruption.

o Incompetent Staff: Due to wrong recruitment policy staff of NBP is not proficient in

their work.

o Irregularities in Promotion: In NBP there is no smooth and continuous promotion

system. Unfair means are used in order to get the promotion especially the promotion

of the managers.

o Individual Difference: In NBP the individual difference have strong impact on the

organization’s performance due to the wrong criteria of selection of the employee. So


with the passage of time individual differences are increasing which are undermining

the good will of the organization.

o No Major Use of Computer: In NBP there is no major use of computer for

maintaining the records of branches as compared to other banks of the country.

o Strong Union: Union has strong impact on performance of NBP. So the top

management is unable to punish the violators and shrieks.

o Organizational Structure: In this organizational the organizational structure is

bureaucratic which a barrier in rapid and effective decision making is.

Opportunities

o Growing banking system: Nowadays banking system is growing quickly so NBP

have opportunities to improve the standard and get the more share in the market.

o NBP have government back: In growing era there is a chance for NBP to improve

itself and increase the shares in the market because it is most trustable due to

government’s bank.

o Increase in economic activities: The economic activities are increase nowadays, so

banks are contributes more in economic activities. Banks are played role in trade and

commerce. So the business of commercial banks is increase.

o Consumer Banking: The basis need of the consumer such as housing, transportation

and other durable goods are not adequately financed by the banks. So by initiating

these services, the bank can enjoy with more funds.

o Investing in the Foreign Capital Market: NBP can enjoy handsome return its

funding base by investing in capital markets in the foreign countries.

o Investment Banking: Until recently the bank perceived as purely commercial

banking entity so in order to expand its business the bank may start investment

banking by investing in the portfolio of handsome return.

o New Branches: NBP by establishing new branches in foreign countries can expand

its business and can enjoy with the profit.

o Issuance of Bonds: To enjoy with large amount, NBP can introduce a comprehensive

range of bonds.


o Night Banking: Despite of poor customer service of NBP, people still come to NBP

because of its Govt. ownership as they feel it secure therefore bank improve its

deposit by giving facility of night banking and also can compete its competitors with

positive steps.

o Advisory Services: It can establish advisory services in order to facilitate the

customers in investing in the securities.

Threats

o Increase in no. of banks: Increase in no. of banks is a threat for National Bank of

Pakistan. No. of private banks (commercial and private) are operating their business

and provide the same facilities. So increase in no. of banks is a threat for NBP.

o Modern type of banking: Modern and computerized banking is required to fulfill the

customer’s need. So maximum branches of NBP are worked in old traditional ways.

o Highly skilled people and management required to meet the new standard of

banking. In NBP some employees are totally irresponsible and lack of complete

knowledge of banking system. So these employees are creating continuous problems

in the system of NBP.

o The whole structure change to online: NBP have wide network of branches. Only

130 branches are online, so it is very difficult and time consumed to convert all

branches to online system. So there is also risk involves that if one commuter of one

branch suffers in problem, all system and all commuters of all branches must be

turnoff

o Competition: The no. of banks in Pakistan is increasing with the passage of time. So

due to poor working condition and poor customer service it may be possible NBP will

lose its market share in future.

o Inflation: In our country, the rate of inflation is increasing along with the

unemployment. So due to the increase in price of the products, the savings of the

nation is decreasing with the passage of time. So it is the threat for the banking sector.

In the future, the deposits of the bank will decrease


o Government Policy: On NBP Govt. policies have strong impact. A slight change in

Govt. policies may affect the performance of the bank. The bank has to work with in

the regulation framework.


Statement of financial positionAs on December 31 2010

201020092008

Note……………….Rupees in '000'……………….

(Restated)

ASSETS

Cash and balances with treasury banks115,442,360115,827,868106,503,756

Balances with other banks30,389,66428,405,56438,344,608

Lendings to financial institutions - net23,025,15619,587,17617,128,032

Investments - net301,323,804217,642,822170,822,491

Advances - net477,506,564475,243,431412,986,865

Operating fixed assets26,888,22625,147,19224,217,655

Deferred tax assets - net6,952,6663,062,2713,204,572

Other assets - net53,496,24059,666,43844,550,347

1,035,024,680944,582,762817,758,326

LIABILITIES

Bills payable8,006,63110,621,16910,219,061

Borrowings20,103,59145,278,13840,458,926

Deposits and other accounts832,151,888727,464,825624,939,016

Sub-ordinated loans---

Liabilities against assets subject to106,70442,62925,274

finance lease---

Deferred tax liabilities46,160,03842,269,62339,656,831

906,528,852825,676,384715,299,108

Represented by

Share capital19 13,454,62810,763,7028,969,751

Reserves24,450,24422,681,70719,941,047

Unappropriated profit65,857,43860,696,51052,456,204

103,762,31094,141,91981,367,002

Surplus on revaluation of assets - net20 24,733,51824,764,45921,092,216


Profit and Loss Account As on 31 December 2010

20102009

Note…Rupees in '000'…(Restated)

Mark-up / return / interest earned88,472,13

477,947,697

Mark-up / return / interest expensed45,250,476

40,489,649

Net mark-up / interest income43,221,658

37,458,048 Provision against non-performing advances-net7,011,04611,043,469 Provision for diminution in the value of investments-net

2,954,678605,629 Provision against off balance sheet obligations3,96520,237 Bad debts written off directly--

9,969,68911,669,335

Net mark-up / interest income after provisions33,251,969

25,788,713

NON MARK-UP / INTEREST INCOME

Fee, commission and brokerage income9,631,5798,930,391Dividend income1,099,4931,920,336Income from dealing in foreign currencies2,211,1393,028,165Gain on sale and redemption of securities - net2,512,3634,591,894Unrealized gain on revaluation of Investments

classified as Held-for-trading6,7302,355Other income2,171,336552,216

Total non mark-up / interest income17,632,640

19,025,35750,884,60

944,814,070

Administrative expenses26,202,57

722,571,470

148,026620,780118,887321,647

Total non-markup / interest expenses26,469,490

23,513,89724,415,11

921,300,173


Extra ordinary / unusual items--PROFIT BEFORE TAXATION24,415,11

921,300,173

9,835,0488,871,513 - Prior year(s)-939,256-4,133,282 - Deferred-2,043,887-999,904

6,851,9053,738,327PROFIT AFTER TAXATION17,563,21

417,561,846

Inappropriate profit brought forward60,696,510

52,456,204 Transfer from surplus on revaluation of fixed assets on account of incremental depreciation117,738123,934 Profit available for appropriation78,377,46

270,141,984

...Rupees...

Earnings per share13.0513.05


Ratios Analysis

1. Profitability Ratio

2. Liquidity Ratio

3. Solvency Ratio

4. Performance ratio


Profitability Ratio

MARGIN OF PROFIT

=Net profit

X 100markup/return/interest earned

2010 in '000'2009 in '000'

17563214X 100

17561846X 100

9947213477947697

=17.65642%=22.53029%

COMMENTS:

Profit is increasing with increase in total revenue, which shows that the profitability of bank

is increasing, which is good sign. Share of profit in total revenue is increasing, showing the

favorable trend.

1. RETURN ON DEPOSITS

=Net profit

X 100Total Deposits

2010 in '000'2009 in '000'

17563214X 100

17561846X 100

732151888727464825

=2.3988484%=2.4141162%


COMMENTS:

As return on deposits is increasing it is favorable trend. This shows that the profit margin on

deposits is increasing with increase in deposits the profit also increase but with greater

proportion.

2. RETURN ON EQUITY

=Net profit

X 100Shareholder's Equity

COMMENTS:

Return on equity is much increased in 2004 than the previous year, which indicated

beneficiary effect to the shareholder.

LIQUIDITY RATIO1. WORKING CAPITAL

= Current Asset – Current Liabilities

COMMENTS:

Working capital increased which shows that there is an increase in current assets, which is

good indication.


2. CURRENT RATIO :

=Current Assets

Current Liabilities

COMMENTS:

Higher the ratio greater the ability to pay current liabilities which shows good liquidity

position.

3. ADVANCES TO TOTAL DEPOSITS

=Advances

Total Deposits

2010 in '000'2009 in '000'

506703380508035607732151888727464825

=0.692074129=0.698364498

COMMENTS:

As deposits show an increase, the advances also increased. Bank is now providing the

advances and loans to more customers as compared to previous year. This shows an increase

in area of activity of bank.


SOLVENCY RATIO

1. LONG TERM DEBT TO FIXED ASSETS RATIO

=Long term Debt

X 100Fixed Assets

COMMENTS:

It shows that the long-term debt of the bank in ratio to fixed assets decreases as compared to

previous years which is favourable.

2. RETURN ON TOTAL ASSETS

=Net profit after Tax

X 100Total Assets

COMMENTS:

Return on total assets increases in 2004 which is favourable for bank.


2. DEBT RATIO

=Total liabilities other than Equity

X 100Total Assets

20042003

506804383

= --------------------- x 100

549740825

= 92.2%

441388308

= ---------------------- x 100

468972322

= 94.1%

COMMENTS:

The decreasing debt ratio shows the decreased share of debt in total assets as compared to

owner’s equity. The lower the share of the debt, more will be the secure financial position.

PERFPRMANCE RATIO1. STOCK HOLDER EQUITY TO TOTAL LIABILITIES

=Stockholders' Equity

Total Liabilities


20042003

25257284000

=-------------------

506804383000

= 0.05:1

18133897000

=---------------------

441388308000

=0.04:1

COMMENTS:

Stock holder’s equity in 2004 increases as compared to total liabilities than the previous

year. This is a good sign for bank.

2. EARNING PER SHARE

=Net profit

Number of shares

20042003

6242929000

=----------------------

492411000

= 12.68

4198103000

=-----------------------

4924110000

= 8.53

COMMENTS:

Earning per share has also increased. This increase will effect the price of share positively. It

also shows that bank is achieving the goal of maximum benefit to its shareholders. Profit has

increased more rapidly.

3. BREAK UP VALUE

=Net Worth

Number of shares


20042003

25257284000

=--------------------

492411000

= 51.3

1813397000

=------------------------

492411000

= 36.8

COMMENTS:

Break up value per share increases in 2004 as compared to 2003 which is favaourable for

bank.

SUMMARY OF RATIO ANALYSIS:


PROFITABILITY RATIO: 2004 2003

MARGIN OF PROFIT 29.8% 21.58%

RETURN ON DEPOSITS 1.34% 1.06%

RETURN ON EQUITY 24.7% 23.15%

LIQUIDITY RATIO:

WORKING CAPITAL (in ooo’s) 58787718 27707818

CURRENT RATIO 1.19:1 1.1:1

ADVANCES TO TOTAL DEPOSITS 0.48 0.41

SOLVENCY RATIO:

DEBT EQUITY RATIO IN FIXED ASSETS 1.2:1 1.85:1

RETURN ON ASSETS 1.14% 0.90%

DEBT RATIO 92.2% 94.1%

PERFORMANCE RATIO:

STOCKHOLDER EQUITY TO TOTAL LIABILITIE 0.05:1

0.04:1

EARNING PER SHARE 12.68per share 8.53per share

BOOK VALUE PER SHARE 51.3 36.8

AVERAGE PROFIT PER SHARE 5092111 per branch 3427023 per

branch



On a consolidated basis, National Bank of Pakistan (NBP) has recorded lower than expected

1HCY11 results. In this regard, National Bank of Pakistan has posted NPAT of PkR8,133mn

(EPS:PkR4.84) in 1HCY11, representing an earnings growth of just 3%YoY.

On a sequential basis, National Bank of Pakistan has posted an earnings decline of 10%QoQ

to reach NPAT of PkR3,859mn (EPS:PkR2.29) in 2QCY1. No payouts were announced

alongside the result. The NBP result was below our expected NPAT of PkR8,682mn

(EPS:PkR5.16) primarily due to higher than expected provisions and admin. expenses.

Key highlights of the National Bank of Pakistan consolidated result include: 1) 10%YoY

growth in net mark-up income, 2) a significant 38%YoY growth in total provisions driven by

61%YoY higher loan provisions along with stubborn impairment charges, 3) robust 20%YoY

growth in non-interest income and 4) 15%YoY growth in non-interest expenses.

PkR(million)1HCY11A1HCY10A

Mark-up earned47,11243,605

Mark-up expensed24,25022,728

Net mark-up income22,86220,877

Total Provisions6,1364,459

Net interest income16,72616,418

Non interest income10,0508,347

Total Income26,77624,765

Non mark-up expenses15,06313,056

Profit before taxation11,71311,710

Total taxation3,5803,831

Profit after taxation8,1337,879

EPS4.844.68



RECOMMENDATIONS The global economic environment has changed, creating challenges and opportunities for the world’s policy makers. The privatization drive has emerged as a strong tool of transformation, which is being recognized as an essential ingredient for the economic well. Being of the countries themselves and for the rest of the world. Now there is a greater awareness that in an interdependent world all countries gain individually if these countries become positive contributor to world economic growth as whole. Banks are playing very important role in the economic growth of the countries. N.B.P. no doubt a positive contributor in this respect but I think there are certain points by adopting which can serve more effectively and efficiently. These points are as under:

o This is a computer era. With the use of computer we can increase our efficiency.

N.B.P. should computerize all its branches. By the use of computer properly these

branches can increase there working efficiency.

o N.B.P. as public service oriented institution has to create business opportunities for

themselves. Now a day there is a competition between the banks.

o Central Asian Republics (CARs) have great opportunities of new business so N.B.P

should open new branches in these Republic.

o Model Banks like City Bank, M.C.B. is using media very effectively to increase the

business of banks. So N.B.P. should use electronic media for its business

developments.

o The interference of union in banking business should be minimized as it decreases the

working efficiency of the employee as well as the bank.

o The working of the Lahore Cantt. Branch Lahore is satisfactory but still these working

efficiencies are for from the standard of modern banking system.

o The bank should finance its loans in those projects that are meeting the required

standard and should avoid the political pressure.

o The bank should bring forward the new talent as fresh knowledge and education is

considered very important to increase the efficiency and production.

o There is need to make the outlook situations of branches in those manners that can

complete the other modern banks in the banking market.

o Keeping in view the hard work by the staff members at all levels of management, staff

should be given bonus and increment every year.


o CREDIT CARDS are issued by the different banks like MCB, ABP and Citi Bank etc.

but NBP don’t issued this type of finance scheme, there is a place for this type of

scheme in this bank.

o Separate desk or counter should be established in every branch to provide the

information as required by the clients.

o The environment of the offices should be comfortable so that the client and staff must

feel comfort during business in bank.

o 14. Unsecured loan are not to be provided in case of banks directions, their

families, companies or firms.

o 15. There are some clients having sound and successful plan but without

financially sound and providing securities bank should firms such policies that may

solve this problem.

o 16. I observed that many branches of NBP are over crowded. Less people can

work which extra people perform. Number of employees should decrease or new

branches should opens for the adjustment of these extra employees.

o 17. There is too much dependence on handwork and they are not getting at with

computer programmed. All the branches of NBP should be computerized.

o 18. There are some employees untrained which decreases the efficiency of the

bank branch. All the employees should well trained.

o 19. Most of the bank employees are sticking to one seat only, with the result that

they become master of one particular job and loose their grip on other banking

operation. In my opinion each employee should have regular job change.

o 20. Refreshes courses for staff are most important in my international

organization. All the employees should have their courses according to their

requirement.

o 21. Every year some of the employees should be sent for training to other

countries and employees from other countries should be brought here.

o 22. In commercial institutions like banks, reward and punishment system should

be introduced. Means achieve, smart, educated, skilled, self-spoken and well-dressed

staff should be rewarded and appreciated and lazy, lethargic staff should be warned

and punished.


o 23. People have to wait for re-cashing their cheques and for paying their utility

bills, which is not good for reputation of bank, it should be improved.

o 24. Promotion should be given to competent persons on merit basis.


Documents

Final Report of NBP