INTERNSHIPREPORTON National Bank of PakistanMiss Laraib AbidA report submitted in partial fulfillment of the requirements of the degree ofMBA 3.5 years ATINSTITUTE OF TECHNOLOGY MANAGEMENT COLLEGE,SARGO!HA"University of the Punjab LahoreInternship Report on NBP, Remount depot branch Sargodha1A#kno$l%d&%'%ntAllpraises,thanks and acknowledgementsare forCREATOR(T)% ALMIGHTYALLAHWhohas bestowedponhmanbeingthe crownof creationandhasendowed him with knowledge and wisdom.! offer thanks to T)% Hol* PROPHET +PBUH, who is the beacon of enlightens andthegreatest benefactorthemankinde"erhad. Whobroght forsre"elationandnlimited knowledge and ci"ili#ed the barbarian hman being.Withprayers of my-ar%ntsandspport of myt%a#)%rsit becamepossibletoformlate this report. ! pay high regards to them.!amalsothankfl toall myfriendsandclassfellowswhohelpedmeandpro"ided me spport to complete this hard task.Internship Report on NBP, Remount depot branch Sargodha$PREFACE!nternship is the complsory part dring the MBA program. !t pro"ides awareness andpractical e%perience to the stdents. The practical e%perience gained throghinternship is beneficial for the stdents in their practical life.&ringworkingas aninternee at 'AT!('A)BA'*(+,A*!-TA', ! reallyen.oyedworkingwiththestaffandgainedalot ofe%perienceabot thebankingsector. This practical e%posre ga"e me an opportnity to nderstand and know thathowto performthe tasks and howto deal with the cstomer in professionalen"ironment. After the completion of internship, internship report has been prepared in accordancewith the practical e%posre. !t shows that how ! worked and what ! learnt dring theinternship.Thisreport isanpshot ofmysi%weeksinternshipin'B,.'B,possess ani mperat i"e andhistorical i mportance inthe banking sectorof,akistan.Althogh, aderisoryperiodof si%weeks is not enoghtol earnthecomple%operations of 'B,yet ! made indstrios efforts tocon"ersethemcomprehensi"el yin this report. ,articl arl y, ! ha"e remneratedmoreaccentsonstdyofdistingishingfeatresandser"icesof'B,.Internship Report on NBP, Remount depot branch Sargodha3!%di#at%d to! wold like to dedicate this accomplishment offline to my belo"ed and caringparents, and to my teachers throghot my edcational career, to the staff members of'B, where ! did the internship and to all those who helped me and makes me able toprepare this report.Internship Report on NBP, Remount depot branch Sargodha/CONTENTSTitl% -a&%...................................................................................................................................................1A#kno$l%d&%'%nt....................................................................................................................................$Pr%fa#%.......................................................................................................................................................3!%di#ation................................................................................................................................................./CONTENTS.............................................................................................................................................5E.%#/ti0% S/''%r*.................................................................................................................................0E1ALUATION OF BAN2S....................................................................................................................1COMPANY BAC2GROUN!...............................................................................................................11Or&ani3ational Str/#t/r% of National Bank of Pakistan....................................................................13Board of Directors.............................................................................................. 13Senior Management........................................................................................... 16BOARD OF DIRECTORS...................................................................................18Mr. Syed Ahmed Iqbal Ashraf (President)........................................................18Mr. Farrah !ayy"m (Director)........................................................................18(Director)......................................................................................................... 18Mohd #halid Mali(Secretary)........................................................................18So"rce$ Annual Report of NBP (!"#)..........................................................18B/sin%ss 0ol/'% of National Bank of Pakistan...................................................................................11Bran#) N%t$ork of National Bank of Pakistan...................................................................................$$N/'b%r of E'-lo*%%s of National Bank of Pakistan.........................................................................$/,rodct )ines...........................................................................................................................................$5"$ Deposits................................................................................................... %&a2 3rrent &eposits.......................................................................................... %&b2 ,)- -a"ing &eposits..................................................................................... %6c2 +i%ed &eposit Accont 4Time &eposits2..............................................................%'d2 +oreign 3rrency Accont..............................................................................%8e2 'B, ,remim Aamdani.................................................................................%8g2 'ational !ncome &aily Accont 4'!&A2.............................................................%($ Ad%ances.................................................................................................. 31a2 'B, -aibaan............................................................................................... 31b2 'B, Ad"ance -alary..................................................................................... 31c2 'B, 3ash 5 6old........................................................................................ 33Internship Report on NBP, Remount depot branch Sargodha5d2 -tdents )oan -cheme...................................................................................33e2 'B, *arobar7 ,resident8s 9o#gar -cheme..........................................................331. Corporate Ad%ances...............................................................................3&a2 3ash +inance............................................................................................... 3&b2 9nning +inance: ("erdraft............................................................................3&c2 &emand +inance.......................................................................................... 3&%. Re&ittances............................................................................................. 36a2 &emand &rafts............................................................................................ 36b2 Tra"elers 3he;es........................................................................................ 3'c2 )etter (f 3redit........................................................................................... 3'd2 +oreign 9emittances..................................................................................... 3'e2 -wift -ystem............................................................................................... 38f2 Mail Transfer.............................................................................................. 38g2 Telegraphic Transfer...................................................................................... 3(h2 ,ay (rder................................................................................................... 3(3. 'iscellaneous.......................................................................................... 3(a2 )ockers..................................................................................................... 3(b2 'B, 3ash 3ard............................................................................................ )*c2 !nternational Banking....................................................................................)*0. 3ore Banking Application...............................................................................)'1. (perations 6rop......................................................................................... )8Pro%incial ( Re)ional 'ana)e&ent............................................................)(Branch Management......................................................................................... )(Or&ani3ational +Mana&%'%nt, l%0%ls at NBP......................................................................................51. 3learing 6o"se De,artment.......................................................................&6Internship Report on NBP, Remount depot branch Sargodha>%. 5emittance De,artment.............................................................................6*3. Acco"nt 7,ening De,artment....................................................................6%). 3ash De,artment....................................................................................... 63&. De,osits De,artment.................................................................................6&6. Ad/ances De,artment................................................................................66'. 3om,"ter De,artment...............................................................................6'a2 (')!'? B9A'3=?-........................................................................................ 6'b2 Batch Branches............................................................................................ 6'c2 Manal Branches......................................................................................... 688. 8ension Disb"rsement De,artment............................................................6((. Acco"nts De,artment.................................................................................6(@se of ?lectronic &ata in &ecision Making............................................................................................A1Information System 5eso"rces of 0B8...............................................................'%a2 ,eople 9esorces......................................................................................... '%b2 =ardware 9esorces..................................................................................... '%c2 -oftware 9esorces....................................................................................... '3d2 &ata 9esorces............................................................................................ '3e2 'etwork 9esorces....................................................................................... '3+tre prospects of 'ational Bank of ,akistan.......................................................................................A/-hort falls: Weaknesses of 'ational Bank of ,akistan............................................................................A>3(M,?T!T!B? A'A)C-!-...................................................................................................................05,oor record management and filing system.............................................................................................0A)ow ,rofit 9ates......................................................................................................................................1. As regards !nternal Adit or !nternal 3ontrol, a separate department shall becreatedwhichshall bemannedpreferablybyprofessionals responsibletocondct adit of the Bank, Barios &i"isions, (ffices, and @nits Branches etc.The =eadof this department will report directlyto the B(&or Board3ommittee on !nternal Adit.A. Thebsiness conditions andmarkets aree"er changingandsoaretheirre;irements. TheBoard, therefore, is re;iredtoensree%istenceof aneffecti"e DManagement !nformation system8 to remain flly informed of theacti"ities, operating performance and financial condition of the instittion, theen"ironmentinwhichit operates, the"ariosrisksitise%posedtoandtoe"alate performance of the Management at reglar inter"als.0. The Board shold meet fre;ently 4preferably on monthly basis, bt in anye"ent, not lessthanoncee"ery;arter2andtheindi"idal directorsofanInternship Report on NBP, Remount depot branch Sargodha1>instittion shold attend at least half of the meetings held in a financial year.The Board shold ensre that it recei"es sfficient information fromManagement on the agenda items well in ad"ance of each meeting to enable itto effecti"ely participate in and contribte to each meeting.1. The Board shold carry ot its responsibilities in sch a way that the e%ternaladitors and sper"isors can see and form .dgment on the ;ality of Board8swork and its contribtions throgh proper and detailed mintes of thedeliberations held and decisions taken dring the Board meetings. 10> 131,1/>,115 $10 1A/,reparing checklist,-tamping on the form,Maintaining accont opening register,,asting of forms in register after release from general banking in charge,!ssance of che;e books,!ssance of acconts maintenance certificate,3losre of accontBerification of signatre in case of che;e presented before releasing of accont opening from -- card is not yet scanned8$ Cash DepartmentAll physical mo"ement of cash in the bank is made throgh the cash department. Asbank is borrowing and lending instittion, therefore cash is the top most priority ofBank. Another aspect is that cash department is for the secrity prpose, secrity in asense that there shold be no embe##lement of fnds or in money leaded to bank byany party or person. The efficiency of bank is also related to this department the moreefficient the bank is the stronger and bsy is the cash department. 3ash departmentperform following fnctions3ashdepartmentowes itsimportanttothefact thatitis a ma.orpointof contractbetweenthe bankandthe cstomer, the bank8s most "aledrelationships. Thisdepartment is the showcase of the bank and con"eys the first impressions abot thebank8s commitment to professionalism in its systems and procedres and to corteosand efficient cstomer ser"ice. 'ormally cash department performs following fnctions 3ollection of fnds Acceptance of deposits 3ollection of tility bills ,ayment of checks 9emittances Act according to any standing instrctions Transfer of fnds from one accont to another Berification of signatres ,osting =andling of ,ri#e bondInternship Report on NBP, Remount depot branch Sargodha>5The two main acti"ities of cash department are as fallowsIDeposit Cash )n Customers &""ountWhen the cstomer want to deposit amont in his accont at opening of accont orafter that then he has to fill a deposit slip that shows the amont and the accont inwhichthecashwill bedeposited. Thenteller will recei"eamont andcredit thecstomer8s accont that shows increase in cstomer8s bank accont.5ake Payments #rom Customers &""ountWhen the cstomer draws a che;e on the bank to pay a certain amont then BB((perator will debit the cstomer8s accont that shows redctioninhis accontbalance.Che4ue en"ashment pro"e%ure*e"eiving 23 Che4uesThe cash is paid against the che;es of the client. The following points are important"3he;e is drawn on same branch3he;e is not post dated.Amont in words and figre are same.!t shold be bearer che;es so the word bearer shold not cross.@eri3i"ation o3 !ignatureAfterrecei"ingtheche;estheche;estheoperationmanager"erifythesignatreoftheaccont holder and the signatre on the che;es. !f the signatre is not same it is retrnedback otherwise forward to BB( (perator for posting.Computer (erminal Pro"essThe che;e is recei"ed in compter terminal, where BB( operator checks the balanceoftheaccont holder.TheBB(operatoralsoseesthestoppayment instrctions,whetherrecei"edfromaccont holderornot.AfterconsideringthesepointsBB(Internship Report on NBP, Remount depot branch Sargodha>>(perator post the che;e inBB(4Branchbackoffice system2 andforwardtooperation manager.Payment 23 CashAfter posting the che;e the operation manager cancelled the che;e and retrned back tocashier. The cashier entersthe che;e incashpaid registeredand pays againstthesecondsignatre of recei"er on the back of the che;e.9$ Deposits DepartmentThe primary fnction of 'ational Bank of ,akistan is to accept and recei"e srplsmoney from the people, which they willingly deposit with the Bank. )ike all otherBanks, 'ational Bank of ,akistan also take incitation to attract as mch depositor8s asit can. The deposit department accepts:collects deposit from accontholders. The'ational Bankof ,akistanoffer different deposit schemestoitscstomers,which incldes the followingI 3rrent &eposits ,)- -a"ing &eposits +i%ed &eposit Accont 4 Time &eposits2 +oreign 3rrency Accont 'B, ,remim Aamdani +oreign 3rrency Accont 'ational !ncome &aily Accont 4'!&A2:$ d%ances DepartmentThe bank is profit seeking instittion. !t attracts srpls balance from the cstomer atlow rate of interest and makes ad"ances at a higher rate of interest to the indi"idalsandbsiness firms. 3redit e%tensions are the most important acti"ityof all thefinancial instittions, becase it is the main sorce of earnings. Ad"ances departmentis one of the most sensiti"e and important department of the bank. The ma.or portionof the profit is sally earned throgh this department. The .ob of this department is tomake proposals abot the loansF the credit management di"isionof headofficedirectly controls all the ad"ances. Internship Report on NBP, Remount depot branch Sargodha>AThe ad"ances &epartment recei"e application fromintending borrowers. Afterrecei"ing application the ad"ance department processes it frther. After analy#ing anddetailedin"estigation, theydecidewhethertoappro"etheloanornot. -omeloanappro"als are made by the Manager of the branch within his powers as prescribed bythebank8shigher athorities, whilesomeloanapplications aresbmit tohigherathorities for their appro"al. -ome ad"ances are of the following natre )oan against 6old Agricltre ad"ance to farmers Medim term ad"ance for working capital )ong term ad"ance for setting indstry -hort term ad"ance to bsinessmanThe 'ational Bank of ,akistan offer following prodcts 4Ad"ances2 to its cstomers 'B, -aibaan 'B, Ad"ance -alary 'B, 3ash 5 6old -tdents )oan -cheme 'B, *arobarThe Ad"ances department deals in following transactionsI1. ,reparationandsbmissionofproposalsof9nningfinance, 3ashfinance,&emandfinance, ?%port finance, -taff finance, +inance against importedmerchandise etc for sanction of finance limit from the hire athority.$. ,reparation and posting of "ochering of all type of finance.3. Accrals 5 reco"ering of Markp on finances on periodical basis./. Appro"al of transfer of fnds throgh &&7TT, ,(, MT, !B3( etc to "ariosbranches by debiting the limits. 5. ,reparation of weekly, monthly, ;arterly, and annally statement to the hireathority.>. Transfer of fnds from one accont to another accont of the party taking theathority letter.A. ,reparation of ad"ances record.0. Timely sbmission of retrns:reports, daily, weekly, monthly 5 ;arterly.1. 3hecking of compter otpts of the department on daily basis.Internship Report on NBP, Remount depot branch Sargodha>01