NBP Final Internship Report

8/8/2019 NBP Final Internship Report

http://slidepdf.com/reader/full/nbp-final-internship-report 1/56

National Bank of Pakistan Civil Line Branch

Table Of Contents

Page #Introduction

HISTORY 01INCORPORATION 02GEOGRAPHICAL LOCATION 02VISION STATEMENT 03MISSION STATEMENT 04OPERATIONS AND FUNCTIONS 05

Organogram of the Departments 06Departments

OPERATION DEPARTMENT 07HUMAN RESOURCE DEPARTMENT 12COMPLIANCE DEPARTMENT 13CREDIT ADMINISTRATION DEPARTMENT 14

FOREIGN EXCHANGE DEPARTMENT 16Products

NBP PREMIUM AAMDANI 18NBP PREMIUM SAVER 19KAROBAR 20

NBP SAIBAN 28NBP ADVANCE SALARY 32NBP CASH CARD 34NBP INVESTOR ADVANTAGE 35NBP GOLD’N CASH 37NBP KISAN TAQAT 38NBP KISAN DOST 39

Swot Analysis 40Deposit Policies 42Lending Policies 46Financial Highlights 54Last Six Year Performance 57Comments On Overall Performance 58Customer Analysis 60Comments 66Findings 69

Department of Business Management Sciences




Dedicated To my Parents

For Their Encouragement & Love





Introduction

History

NBP is the largest commercial bank in the Pakistan and was establishedunder the National Bank of Pakistan Ordinance on November 8, 1949 inPakistan. It was established in crisis conditions following the deadlockwith India. The original intention was to setup it sometime in 1950. Theplans for its establishment had to be advanced in view of the criticalsituation, which developed especially in the jute trade as a result of India’srefusal to accept the exchange rate of Pakistan’s rupee. It played anotable role in financing the jute trade in collaboration with the Jute Boardso that crisis was eventually overcome. The timely opening of the bankbranches enabled the jute growers in East Pakistan to obtain a fair priceof their products and helped the country in maintaining its foreignexchange earnings from raw jute. Later on, it established its office in WestPakistan to help and finance the cotton crop.

The national bank of Pakistan took over the agency work of the StateBank of Pakistan in 1952 for transacting Government business and

managing currency chests at places where the State Bank of Pakistandoes not has an office of its own. The National Bank of Pakistan in view of its relationships with the Government and as agent of the State Bank of Pakistan holds unique position among commercial banks in Pakistan. For example, for years it had a monopoly in Government and Semi-Government deposits. This is both a privilege and a responsibility. On theone hand, the bank is given special support and assistance and on theother, it is also expected to serve as an instrument for the promotion of national objectives and policies. It also undertakes Government Treasuryoperations. National Bank of Pakistan maintains its position as Pakistan’spremier Bank determined to set higher standards of achievements. It isthe major business partner for the Government of Pakistan with thespecial emphasis on fostering Pakistan’s economic growth throughaggressive and balanced lending policies, technologically orientedproducts and services offered through its large network of 1406 brancheslocally, 24 branches internationally and representative offices.





Main Branch (CIVIL LINE) Faisalabad

Incorporation Date

The Civil Line Branch was incorporated in 1949. It is the main branch of Faisalabad District. National Bank Of Pakistan has 43 branches inFaisalabad. All braches are located in different areas of the cities to servethe nation. Because it is said that the NBP is the “nation’s Bank”

Geographical Location

The main branch of national Bank of Pakistan in Faisalabad is situated onthe Jail Road(Civil Line). It is the Central Area of the city, so thegeographical location of the NBP has made its operations so easy for thepublic.

This is the only branch that has been owned by the bank. Also the officeof the chamber of commerce is situated on the 2 nd floor of the mainbranch of NBP. So that has also strengthen the relationship among theindustrialist of the city and played a great role in there success. Also theyhave contributed n the progress of the NBP because Faisalabad isconsidered as the city of Textile. The textile is playing a great role in theeconomy of Pakistan.





Vision Statement

To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the rangeof product offering





Mission Statement

To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our core values .

Core Values

We 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.

We shall work to…

• Meet expectations through Market-based solutions and products.• Reward entrepreneurial efforts.• Create value for all stakeholders.

We aim to be people who…

• Care about relationships.• Lead through the strength of our commitment and willingness toexcel.• Practice integrity, honesty and hard work. We believe that these aremeasures of true success.

We have confidence that tomorrow we will be…

• Leaders in our industry.• An organization maintaining the trust of stakeholders.







Foreign Currency Accounts handling (US $, Pound Sterling,Japanese Yen & Dutch Mark)

SBP Export Refinance SchemeRemittances both inward and outward

DepartmentsOperation

The department that is most commonly used for general banking is called theoperation department. In the civil line branch it is being run effectively under thesupervision of “CHIEF OPERATION MANAGER”The following are the some categories according to the type of work done by theoperation officers.

Remittances

The main functions of the remittances are as follows

Demand Draft

If you are looking for a safe, speedy and reliable way to transfer money,you can now purchase NBP’s Demand Drafts at very reasonable rates.Any person whether an account holder of the bank or not, can purchase aDemand Draft from a bank branch.It is a bill either on demand or otherwise by one bank on another in favour of third party or by one branch of the same bank or by the head office onthe branch or otherwise.

The issuance of the DDThe amount both in words and figures is written and the applicant has tosign on two places which will be helpful in case DD is to be cancelled.The client has to deposit the cheque (Account holder) or cash at the

counter and will receive the receipt that will be paid to the officer who willissue the DD in favour of the holder and the entry will be recorded in theDD issued register.

Mail Transfer





Move your money safely and quickly using NBP Mail Transfer service.And we also offer the most competitive rates in the market.The money will be transferred to the other branch either locally or notthrough mail.

If the customer is the account holder then his account will be debited, if not then he will have to make the cash payment at the Cash counter andthe receipt will be presented to the MT issuer officer. The following formswill be used for this purpose1. Branch mil transfer form2. Receiving Branch registered Copy3. Issuing Branch Registered Copy4. Debt Voucher 5. Beneficiary’s Advice6. Advice to customer

Pay Order

NBP provides another reason to transfer your money using our facilities.Our pay orders are a secure and easy way to move your money from oneplace to another. And, as usual, our charges for this service areextremely competitive.

It is mostly used locally and its procedure is same as the DD issuedprocedure.

Telegraphic Transfer

It is the most efficient way t transfer the money from one place to another on one phone call only. It is an application form provided to the customer in which he has to specify the name of the payee, the place of the transfer and the amount.

After filling of the voucher the client will make the payment and get thestamp of Cash paid by the Cash Officer And then Authorized person willmake tests on the receipt. The tests are the secret codes that are notunderstandable to any unauthorized person.After making the call the tested messages will be delivered to the other branch officer who will complete the transaction.







Payee. The Consolidated of the receipt and payment of cash in entered inthe cash balance book and drawn closing balanceClosing Balance = Cash + Receipt _PaymentsGovt. Receipt And Payment

This department also comes under the operations of the branch. It dealswith the payment and collection of dues on behalf of the local, provincialand federal govt.The payment side involves the payment of all type of pensions and other funds that are announced by the govt. or any tax returns by the CBR.The collection of dues includes the collection of Sales Taxes, IncomeTaxes, Property taxes and any other fee that is to be submitted in theaccount of the Central Treasury. The collection of the Challan forms, feesand the payment made to the Punjab Public Service Commission is alsoincluded in this counter.

Collection Of Utility Bills

The counter for the collection of utilitity bills also play a great role in thegeneral banking setup. The NBP collects all type of bills on behalf of theconcerned organizations for a pre agreed fee.

Clearing

The department that is responsible for the clearing of the cheques thatare drawn on the other banks or the cheques that have been drawn onthe NBP.In the past it was a more complicated process, because SBPwas the custodian so it had to make the arrangements for the clearanceof cheques that have been drawn on the others. So a person representinghis or her bank had to go to SBP for the Clearance of these chequeswhich was a time consuming method and it was taking at least 4 to 5 daysfor the clearance.Now the SBP has made the thing so easy for all the banks by making acontract to a privatized insitution”NIFT”. Now all the clearing is being donethrough the NIFT against a Fee that is Rs.2.5 for every cheque that hasget cleared.





Types of Cheques Collected by the Clearing

a)Transfer Cheques

The cheques that are collected and paid by the same branch of the bank

b)Transfer Delivery Cheques

The cheques that are collected and paid by two different branches of abank situated in the same city.

c)Clearing Cheques

When the endorsee (the person who deposit the cheque for collection)and the the person on whom the cheque has been drawn are the accountholders of two different banks then these type of cheques can be getcleared through the NIFT.





HUMAN RESOURCE DEPARTMENT

Being the main branch of the Faisalabad the Hr department has to play abig role in the success ph the branch. The HR is considering great

importance now a days and should get also because the personnel arethe main asset of the NBP. Being the main branch the staff is also a keyfactor. The primary objective of the Hr department is to get the jobs doneeffectively, economically and with as little friction as possible. Thedepartment is focusing mainly on the policies that are focused on thepersonnel.

Most talented people are hired through proper recruitment process.Discrimination of any kind is counter productive to performance.The objectives/functions that has to be performed by the personnel areclearly mentioned in the JOB DESCRIPTION.The code of conduct provides s framework of NBP’s values and ethicalstandards. The following principles must be applied for the governing thecode of conduct of the bank employees while on the job.• All decisions and actions must be confirmed with all applicable laws,regulations and corporate policies.• Business must only be succored for NBP on the basis of the belief in competitive market system and the appropriatness of earning a profitby providing our customer with efficient services.• Individual must be honest and trust worthy in all actions andrelationships for, and in behalf of the NBP.• Each decision or act must be proper, in terms of both our ownsense of integrity and the scrutiny of others.• Ethical conduct should be recognized and valued by all employeesand agents of the bank.Formal appraisal is a year round activity and a formal appraisal report isprepared at least once a year. The appraisal comments are based onachievements against key job objectives. In NBP the good performance of

the employees is always acknowledged by giving them monetaryrewards. Excellence awards, merit increments, gifts, visiting tickets toabrade and promotions .

Transfers are usually made on the promotions from one country toanother or from one branch to another or maybe from one department toanother.









COMPLIANCE DEPARTMENT

The department that deals with the Audit/Checking and inspection is knownas the Compliance deptt. The department is being run under the supervision

of the COMPLIANE OFFICER.

It is involved in the checking of all types of work that is being conducted inthe branch.The inspection is carried out on daily, weekly and monthly basis dependingupon the nature of the work.Generally it includes the following type of functions;

• Checking of all type of registers that are maintained by the officers of remittances, and that areo Demand Draft issued Register o Telegraphic Transfer issued Register o Main Transfer issued Register o Pay Order issued Register o Register of all type of Advices received against DD, MT, and TTo Demand Draft received Register o Telegraphic Transfer received Register o Main Transfer received Register o

Pay Order received Register • Inspection of the Dak/Mail register issued and received• Inspection of all books that are maintained at the clearing• Inspection of the Cash Book• Inspection of the Scroll Book• Inspection of the Cheque Book Issued Register • Inspection of the all the payments made to pensioners• Inspection of the all type of Receipts• Inspection of the Cash issued to the branches• Inspection of the utility bills collected• Inspection of the receipts and the payments of the Govt. Counter • Inspection of the all type of Deposits• Inspection of the of the all type of loans• Inspection of the Corporate Cell





CREDIT ADMINISTRATION DEPARTMENT

The most important department of the NBP main branch. The credit

department of a bank is the most profit generating department of anybank. The department is being run effective under the supervision of CADOfficer. The department is involved in all the process of Booking the loan,documentation, Risk Analysis, Sanctioning /Approval Documentation,Sanction Advice, Securitization, Disbursement, Monitoring, Collection,Recovery.The financing process starts with

Loan Booking• Introduction• Funds requirement• Nature of Utilization• Nature of Business• Financial position• Character • Security

Documentation (Pre-Sanction)•

Information about business• Persoanl data• Security Valuation• Security Documents• Encumbrance• BLA Report (Bench Legal Advisor)• Loan History (CIB Report)• Loan Application Form

Analysis• Financial Analysis• Sector Analysis• Product Analysis• Political Factors• Industry Analysis





• SBP Prudential Regulations

SecuritizationThe complete process is made for the security that is being used for

the approval of loan. The securities may be of the following types:• Personal Guarantee• Personal Guarantee + Hypothecation• Pledge• Mortgage• Charge/Lien on the Current Asset

Approval Document

Then an approval document is received from the appropriate/competent authority.

Sanction Advice

Then the terms and conditions are advised with the approval document.

Disbursement of Loan

Then the loan is disbursed to the party after the completion of all the above stated

requirements.

Monitoring

The monitoring involves all the steps that will be taken for the maintenance of theadvances of the customers. The officers will determine that either the person is

paying the installments or not. In case of short tern loans the time period willshort and the customer should be in a position to payback the loan.

Collection

This sub head is involved in the collection of all the payments and advance if thetime period is finished.

Recovery





In case of default by the customer, the recovery process will be on. Duringrecovery all legal actions will be taken against the customers regarding paymentof the loans.

Foreign Exchange

Foreign Exchange means expression of value of local currency whenexchanged in terms of currencies of other nations. The Foreign ExchangeDepartment of NBP is the most competent department and is contributinga lot in the overall performance of the Branch.

The main operations of the Foreign Exchange department are• Imports• Exports•

Remittances• Foreign Exchage Account handling

IMPORTS

The import deals primarily with the letter of Credit, Contract and theAdvance payment .An Lc is a familiar instrument in setting trade between buyer and seller located in different countries for the purchase and sale of goods. It isusually a guarantee by the bank for the payment of the goods deliveredby the exporter to the importer.

Important documents for the Import are• Bill of Exchange• Commercial Invoice• Transportation Documents e.g Air way bill or bill of lading• Insurance documents for the goods• Packing List• Pre-shipment inspection certificate• Form I

In contract the most popular is CAD (Cash against Documents). That isthe payment will be made at the collection of the documents that wereinvolved in the negotiation process.





The third way is the advance payment that will be made to the exporter either full or partial depending upon the nature of the transaction.

Exports

Export is mainly involed with the collection of the documents or thediscounting of the LC. In the negotiation process Export Bill negotiationA/c will be debited.

Documents Required for the negotiation:• Form-E• Bill of Exchange• Commercial Invoice• Transportation Documents e.g Air way bill or bill of lading• Packing List• Letter of Credit

Documents to be Forwarded

• Bill of Exchange• Commercial Invoice• Transpotation Documents e.g Air way bill or bill of lading• Packing List• Other specific Documents

Documents Remained in hand• Form-E• Copy of Commercial Invoice• Copy of Packing List• Letter of CreditAt the month end the reporting will be made to the SBP for Form-E

REMITTANCES

The process of receiving the payment from the other countries and payingto the people in Pak Rupees is called the remittances.The payment is received through “SWIFT” and the popular ways used for the remittances are:





• Telegraphic Transfer • Mail Transfer • Demand Draft

Foreign Exchage Account handling The accounts are also handled for thecustomer in foreign currencies.





PRODUCTS

NBP Premium Aamdani (Monthly Income Scheme)

Eligibility Criteria:

Minimum deposit of Rs. 50,000 and a maximum deposit of Rs.5,000,000 for 5 years

Free Demand Draft, Pay Order and NBP Online Aasan Banking*Free Cheque Book / NBP Cash Card (ATM + Debit)Profit paid every month as follows

Period** Profit Rates***





1 year 7.50%2 year 8.50%3 year 9.50%4 year 10.50%

5 year 11.00%Earn up to 11% p.a.†Profit rates are expected*Certain conditions applyPremature encashment will result in lower rates of returnExpected rates are for the given year

NBP Premium Saver(PLS Saving Account)


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 transactionsProfit calculated monthly and paid on half yearly basis

Earn up to 7.25% p.a.Profit rates are expected

Certain conditions applyPremature encashment will result in lower rates of returnExpected rates are for the given year





NBP Karobar (Another step towards your prosperity)

NBP Rozgar Scheme:

If you are aged between 18 and 40 years, you could be eligible for easyfinancing for self employment in the categories below

Karobar Details:

Government of Pakistan (GOP) support:1) Life and disability insurance paid by GOP with no medicalexamination required.

2) 6% mark-up paid by customer, rest paid by GOP.* Subject to availability of subsidy/confirmation from GOP.Note: The mark-up rate will be revised on annual basis.

Financing Terms & Conditions:





Minimum Down Payment:

10% of asset price (5 % for PCO and Tele center)

Mark-up Rate Variable :

1 year KIBOR + 2% (For the first year mark-up will be 12%) The customer will pay markup @ 6%p.a as long as GOP provides the balance markupto NBP on a monthly basis)

1 to 5 Years (for PCO 2 years)Initial 3 monthsRs. 200,000/-

NBP Karobar Utility Store(Under a Franchise with Utility Store Corporation)

Financing will be provided to set-up a Utility Store under franchise of Utility Store Corporation through

Set up of a Utility Store in an owned/ rented shopA “Mobile” Utility Store: 4 stroke Petrol/ CNG/ LPG Vehicle

(Rickshaw) with attached loader body/ (Thehla type or Store)

Eligibility Criteria

Must be Pakistani national bearing a Computerized NICAge between 18 to 45 yearsMust be residing in the same city / district for the last 2 yearsMust have a franchise from Utility Stores Corporation of PakistanMust have a valid rickshaw driving license (for mobile utility store)Availability of 2 references & 1 guarantor (USC shop setupNo default or rescheduling history of the applicant





References and guarantor must be residing in the same city / districtwhere the applicant is residing

Security

In case of Utility Store shop set ups:Hypothecation charge over the present and future assets in store

(except stock)One guarantor, having minimum net income of Rs. 10,000/-p.m.

(subject to NBP verification) or must be property ownersPersonal guarantee of the applicant4 cross Cheques

In case of Mobile Utility Stores:

A lien would be marked under hire purchase/hypo agreement on thevehicle

Personal guarantee of the applicant4 cross Cheques

NBP Karobar Mobile General Store

Financing will be provided to purchase 4 stroke Petrol/CNG/LPG Vehicle(Rickshaw) with attached loader body (Thehla type) to set up MobileGeneral Store without USC Franchise.

Eligibility Criteria :

Must be Pakistani national bearing a Computerized NICAge between 18 to 45 years

Must be residing in the same city / district for the last 2 yearsMust have a franchise from Utility Stores Corporation of PakistanMust have a valid rickshaw driving license (for mobile utility store)Availability of 2 references & 1 guarantor (USC shop setupNo default or rescheduling history of the applicantReferences and guarantor must be residing in the same city / district

where the applicant is residing





Security

In case of Utility Store shop set ups:

Hypothecation charge over the present and future assets in store(except stock)

One guarantor, having minimum net income of Rs. 10,000/-p.m.(subject to NBP verification) or must be property owners


In case of Mobile Utility Stores:

A lien would be marked under hire purchase/hypo agreement on the

vehiclePersonal guarantee of the applicant4 cross Cheques

NBP Karobar Mobile General Store


Must be a Pakistani national bearing Computerized NICAge between 18 to 45 yearsMust be residing in the same city/ district for the last 2 yearsAvailability of 2 referencesNo default or rescheduling history of the applicantReferences must be residing in the same city / district where the

applicant is residing

Security:


Personal guarantee of the applicantCross Cheques





NBP Karobar Transport

Financing will be provided to purchase a 4 stroke Petrol/CNG/LPGVehicle (Rickshaw)


Must be a Pakistani national bearing Computerized NICAge between 18 to 45 yearsMust be residing in the same city / district for the last 2 years

Availability of 2 references having landline telephone numbersNo default or rescheduling history of the applicantReferences must be residing in the same city / district where the


Security :







Women and Poverty :

Women of today is not the women of yesterday she is moreknowledgeable more confident, and more dynamic. To salute the womenof Pakistan, NBP introduces loan products for the women of Pakistan tobring them out from the hardships of poverty, through the following self-employed schemes of NBP Karobar

NBP Karobar PCO

Finance will be provided to purchase Wireless/ Mobile/Desktop telephoneset(s) with prepaid connection and credit balance(s) to establish a PCOsetup

Eligibility Criteria :

Must be Pakistani national bearing a Computerized NIC

Age between 18 to 45 yearsMust be residing in the same city/ district for the last 2 yearsAvailability of 2 references & 1 guarantor numbersNo default or rescheduling history of the applicantReferences must be residing in the same city / district where the






Security

Hypothecation charge over the present and future assets of thebusiness

One guarantor, having minimum net income of Rs. 10,000/- p.m.each (Subject to NBP verification) or must be a property owner for singletelephone set minimum income requirement for guarantor is Rs. 5,000/-per month and for multiple sets Rs. 10, 000/- per month


NBP Karobar Tele-centre

Finance will be provided to purchase Wireless/ Mobile/Desktop telephoneset(s) with connection, computer(s) and printer cum fax machine cumphotocopier cum scanner etc to establish a Tele-centre on a rested shopor owned premises


Must be Pakistani national bearing a Computerized NICAge between 18 to 45 yearsMust be residing in the same city/ district for the last 2 yearsAvailability of 2 references & 1 guarantor

numbers





No default or rescheduling history of the applicantReferences and guarantor must be residing in the same city / district

where the applicant is residing

SecurityHypothecation charge over present and future assets of the

businessOne guarantor, having minimum net income of Rs. 10,000/- p.m.

(Subject to NBP verification) or must be a property owner Personal guarantee of the applicant4 cross Cheques

Repayment

No payment during grace periodMonthly installment comprises of principal, mark-up and insurance

paymentsThe customer, at any point of time, may exercise the right to fully

adjust the account before maturity or to partially pay the loan throughballoon payment without any penalty.

Documents to be submitted with the Loan Application

Application form (available for Rs.5/- from all NBP branches)List of items available in the schemeThree attested Computerized NIC copies of the applicant and

guarantors eachTwo photographs of applicant and guarantors each (if applicable)Franchise acceptance letter from Utility Stores Corporation (where

applicable)Estimated cost of advance rent, security deposit and assets, to be

purchased along with quotation (where applicable)Attested salary slip of guarantor (where applicable)NTN or latest Tax Return if available of guarantor (if a business

person)Proof of property ownership of the guarantors (where applicable)

Processing, Verification & Registration Charges (if applicable)





Verification Charges Rs. 500 (non refundable)Rs. 300 for NBP Karobar PCO (nonrefundable)

Processing Charges % of the loan amount(for loan amount upto Rs.30,000/-)

(non refundable)Rs. 1,000/- (for loan amountabove Rs.30,000/- - non refundable)

Note: All charges submitted withapplication are non refundable atany stage.Document Charges At actualVehicle Registration At actual (To be borne by the

borrower)Insurances Property/ Assets insurance to be

borne by the borrower

Life & Disability insurance to be borne by GOP.

Government of Pakistan (GOP) support:1. Life & Disability insurance paid by GOP requires no medical examination.2. 6% mark-up to be paid by the customer and rest by GOP*Subject to availability of subsidy / confirmation from GOP

Note: The mark-up rate will be revised on annuallyNote: Applicants for all products must provide their landline/ WLL telephone numbers or provide the landline/WLL telephonenumbers of their relatives, friends, neighbours etc,. However, telephone numbers must be of the same city/ district where the applicant is residing.

NBP Saibaan

Under the scheme of NBP Saibaan following types of products to thecustomers. His scheme is launched especially for the people those whowant to have loan for the construction, renovation or purchase of land.

Product Items:

Home FinanceHome ConstructionBalance Transfer Facility (BTF)Home RenovationPurchase of Land + Construction





Home Purchase (House or Apartment)Financing Amount Up to 35 MillionFinancing Period 3 to 20 Years

Debt to Equity 85:15 (Maximum)Home Construction

Financing Amount Up to 35 MillionFinancing Period 3 to 20 YearsDebt to Equity 85:15 (Maximum)

Home Renovation

Financing Amount Up to 15 MillionFinancing Period 3 to 15 YearsDebt to Equity 70:30 (Maximum)

Purchase of Land and for Construction thereonFinancing Amount Up to 15 MillionFinancing Period 3 to 15 YearsDebt to Equity 70:30 (Maximum)

Re-Financing (Balance Transfer Facility (BTF))

If you have a Home Finance Facility outstanding with another bank you can haveit transferred to NBP through a hassle-free process.All home financing facilities below Rs. 15 M Debt to Equity Ratio will be 85:15& for Rs. 15 M and above Debt to Equity Ratio will be 80:20.*50% of the loan will be disbursed at the time of land purchase and rest of the50% for its construction will be disbursed in 4 tranches.

EligibilityMust be Pakistani Resident (National)Aged between 21 and 65 years at the time of application/disbursement of

loan.Salaried Person, Self-employed professionals and businessmen.Property located in NBP approved localities.





Service duration: Two years for salaried class Three years for self-employed/business class.

Charges

Mark Up Rates **

Variable Rate Option: SBP Discount Rate with (+2%) with12 months re-pricing

Processing FeeGovernment Employees :

Rs. 500/- irrespective of financing amount.

For Others :

Financing below Rs. 1 Million Rs. 1000Financing between Rs. 1 to 4 Million Rs. 3000Financing above Rs. 4 Million Rs. 6000

Other Charges **

Income Estimation, Legal and valuation fee will be charged as per actual

Prepayment Option Available

Pre-payment (Complete/Partial option available).

Required Documents

Two attested passport size photographsTwo attested copies of your National Identity CardCheque for the processing charges

Property Documents:Any title document available (other documents may be required)

AND





1) FOR SALARIED PERSONS, WHOSE SALARIES ARE DISBURSEDTHROUGH NBP BRANCH

Employer Undertaking for remittance of salary at relevant NBPbranch for credit to customer’s account (to be provided at a later stage,format available at relevant branch)

Employee ID Copy attested by NBP Branch (where applicableAttested copies of last three (3) months salary slipsAttested copies of last three (3) months bank statements

2) FOR SALARIED PERSONS OF MNCs AND NBP APPROVEDCOMPANIES

Employer Undertaking duly attested by relevant NBP Branch, whereapplicable (to be provided at a later stage, format available at relevantbranch)

Attested copies of last three (3) months Salary SlipsLetter of Verification of Employment on Company Letterhead

mentioning the date of joiningAttested copies of last three (3) months bank statements

3) FOR OTHER SALARIED PERSONS

Letter of Verification of Employment on Company Letterheadmentioning the date of joiningAttested copies of last three (3) months Salary SlipsAttested copies of last twelve (12) months bank statementsAttested copies of last three (3) months paid bills for electricity and

telephone OR copies of last (12) twelve months credit card bills (whichever is available)

4) FOR BUSINESS PERSONS

Bank Certificate stating applicant maintaining Business Account andthe date of account opening

Attested copy of latest Form 29 in case of Private or Public LimitedCompany

Attested copy of Partnership Deed (where applicable)

5) FOR SELF-EMLPLOYED PERSONS







Terms and Conditions:

Eligibility Permanent Employees of Govt., Semi-Govt.,Autonomous, Semi Autonomous, Local &other bodies who are maintaining their SalaryA/Cs at NBP.

Repayment Direct deduction from Salary A/CMaximum LoanAmount

Rs. 490,000/-

Security Employer will provide undertaking that borrower’s Salary and end of service benefitswill route through his/her Salary A/Cmaintained at NBP during the tenure of theloan and his/her end of service benefits are at





least equal to the amount of Advance Salaryrequired.

Hypothecation of Consumer durables owned by the borrower.

Three (3) Undated Cheques

Max. RepaymentPeriod

5 years (60 months)

Advance in terms of #of net take homesalaries

Up to 20 net take home salaries

Markup Rate 15 % *(Based on diminishing balance method)

Processing Fee 1% of Loan AmountVerification Charges Rs 500/-Life Insurance No Insurance of any kind.DocumentationCharges

at actual

Contact Your Salary disbursing NBP Branch.Remaining Service Age At the time of approval and disbursement the

applicant’s remaining service age should be 6months after maturity of the loan

Debt Burden 50%Minimum net take

home salary

no minimum take home requirement

NBP Cash Card

To identify a merchant outlet that welcomes your card, just look for theNBP or Orix Logo. To make a payment give your NBP Cash Card to themerchant. The merchant will swipe your card on the POS (Point Of Sale)machine and the purchase amount will be entered. Enter your digital ATMPin for verification (this is the same as your cash withdrawal pin). After Approval a transaction slip will be provided. Collect your card and slip andconfirm you transaction amount. Your purchase transaction is nowcomplete and the transaction amount has been debited to your NBPaccount. Please retain your transaction for further reference.





NBP Cash Card Safety Tips

Welcome to our relationship enriched with a wide range of remarkable e-banking service. For your safety and convenience we would recommendsome precautions while using NBP CASH CARD at ATMs and merchantoutlets.

Immediately after receiving the NBP Cash Card, change your PINCode at the nearest NBP ATM.

Never share your Personal Identification Number (PIN) or given itout over telephone.

Never write your PIN Code on your card.Never keep your card and PIN at the same place.As you approach an ATM, beware of your surroundings, if you

notice anything unusual, visit the ATM later.Immediately report a lost of stolen card to your NBP branch.Stand close to the ATM machine while entering your PIN and do not

allow anyone to watch.Ensure that the merchant has entered the correct amount of

transaction before you enter your PIN code.Maintain your POS receipt as a record and ensure that he card

returned to you by the cashier/attendant is yours.Protect your card from direct sunlight and magnetic fields.Do not bend your card.Carefully dispose off your old card when your are issued a new one.

NBP Investor Advantage

NBP launches Margin Financing for Retail Investors with brandname of NBP Investor Advantage:

A margin financing facility developed for retail investors in line with

Government’s efforts to promote Pakistani capital markets and willreplace the Badla (COT) system with a stable financing system in linewith international financial markets. Besides offering a comfortableenvironment to the retail stock investors, a financing facility will also beavailable. Willing investors can avail NBP financing at very easy termsrequiring minimum documentation and least turn around time. The NBPfinancing also does not require any security from the customer except for





the customer’s equity. Importantly, the customer’s equity will also befreely available for investment. Customer has to fulfill all NBP and SBPregulatory requirements.

To obtain NBP Investor Advantage facility

Eligible if:

A Pakistani Nationals with valid computerized national ID CardOver 21 years of ageHave an account with NBP designated branchWilling to invest equity in the form of cash or NBP approved sharesNo default with any financial institution

For utilizing the NBP Investor Advantage, please follow the followingsimple steps:

1. Obtain Facility Application form from the NBP MarginFinancing Desk at NBP Main Branch, Karachi, I.I. Chundrigar Road,Karachi (other branches are being added through out Pakistan)2. Fill in the application form and submit it to the branch at theMargin Financing Desk3. On application approval, customer deposits equity as Cash inthe customer’s margin financing account at the bank. Alternately NBPapproved Shares can also be deposited in the NBP CDC account4. Customer would then be eligible for trading through tradingcenter of the NBP Subsidiary namely Taurus Securities Limited adjacentto the NBP Main Branch at I.I. Chundrigar Road, Karachi5. Customer’s own equity and financing amount will both theavailable for trading

List of Shares Eligible for NBP Investor AdvantageS.No. No Name of Shares/ Scrips1 D.G Khan Cement Company Limited2 Engro Chemical Pakistan3 Fauji Fertilizer Co.4 Hub Power Company Limited5 PICIC Growth Fund6 Kat Addu Power Company


http://www.nbp.com.pk/Margin/Index.htm#NBPShares%23NBPShares

http://www.nbp.com.pk/Margin/Index.htm#NBPShares%23NBPShares




7 Nishat Mills Limited8 Oil & Gas Development Co. Ltd9 Pakistan OILFIELD LTD.10 Pakistan Petroleum Limited

11 Pakistan State Oil12 PTCL13 Sui Northern Gas Pipe Lines Limited14 Sui Southern Gas Company Limited

NBP Cash n Gold Card

With NBP's Cash n Gold, you can meet your need for ready cash againstyour idle gold jewelry.

Rate of mark-up 12% p.a.Facility of Rs. 7,000 against each 10 gms of net contents of goldNo maximum limits of cashRepayment after one year Roll over facilityOnly gold ornaments acceptableWeight and quality of gold to be determined by NBP's appointed

scruffsNo penalty for early repayment

NBP Kisan Taqat- General Information

If you are a progressive milk supplier of Nestle Milk PackBy financial aid of National Bank of Pakistan, you can increase theproduction of milk efficiently.





Benefits of National Bank of Pakistan’s Loan:

Branches, closest to youEasy and shortened documented procedureRelaxation from paying installmentsGuidance and help of experienced peopleGovernment bank with more than 50 years of age

NBP Kisan Dost

National bank of Pakistan has started for Farmers an Agriculture loansystem names “Kisan Dost” whose basic objective is this that a farmer can acquire a loan with full trust and without any bribery and referenceaccording to his requirements. He should have access to approved loanwhen he needs it and whenever he wants it he may withdraw money infuture from his account as per his requirement, approved on revolving

basis during three years without any paper documents. So, now everyfarmer can very easily increase his production with easy access to loan.

Features:

Lowest mark up on loans, i.e. 12% per annumFast and easy procedure for loan approvalsAvailability of loans on time and when needed, on the door of farmer On every step, guidance of farmers through agriculture expertsFor the acquirement of loans, a wide range of agriculture loans

(schemes)Facility of agriculture loan at agricultural pass book, jewelry and

paper securitiesProvidence of loan up to 0.1 million on personal guarantee to non-

owner farmers







7. Sale & Purchase of prize bonds, NIT units, National Defense SavingCertificates (NDSCs) and other government securities.8. Heavy project financing, Agriculture, Industrial as well as smallloans9. Key role in country’s economic development10. Easy and shortened documented procedure11. Guidance and help of experienced people

Weaknesses

Under utilization of the new technology equipment & procedures of banking

More formal organizational setup

Bureaucratic style prevails in the National Bank of PakistanLack of highly skilled, trained and professional personnelFixed deposit rates not compatible with the competitorsForeign currency accounts governing rules more restricted & not

customer orientedBank staff not highly cooperative among themselves as well as with

the customersOverall employees’ poor attitude towards work

Opportunities

The ability to obtain a larger customer baseGlobal expansion. This is an enormous market, which will be a great

opportunity in the futureThe ability to take advantage of the growing popularity of internet

bankingProviding Information Technology loans to the students and

educational institutions in order to foster the Computer and Managementstudies

Providing the personalized services to the customersOffering high deposit rates and cutting down the high lending ratesFinancing the educational institutions and general public welfare

projects in order to create a good image in general public





Threats

Continual changing technologyUncertainty of the banking industry

Competition from “lower price” operationsPossible failure of product due to non-acceptance of customer General competitiveness of the banking industry

Deposit Policies of NBP

As well as deposit is concerned the deposits are the life blood of the bankbecause the borrowed capital is much greater than their own capital. Thedifference between the borrowed money interest and the lending rate of interest will be the profit margin of the bank because the lending rate is

higher than the borrowing rate. Following are the major deposits of thebank:

Current Account

Current accounts are opened for meeting the current needs of thecustomer. On such account there is no markup paid to theaccountholders. These are also called non-interest bearing accounts.Minimum balance requirement is Rs. 5,000 if balance of the account willbe less than 5,000 than Rs. 50 to be deducted each month. Pension,Government employees, students, widow are exempted from thisrestriction. No Zakat will be deducted from the current Account holder.2% tax will be deducted if the customer withdraw more than 25000 in ada y.Requirements for the Current account





CNIC of the customer CNIC of the next of KinCNIC of the Introducer Two photographs for the illiterate person.

Specimen of the signatures of the educated personThe introducer must be an existing current account holder.

PLS Saving Account

The customers in this account deposit a lot of amount. On such amountthere is markup paid to account holders. Minimum balance requirement isRs. 5,000 if balance of the account will be less than 5,000 than Rs. 50 tobe deducted each month. Pension, Government employees, students,widow are exempted from this restriction. Zakat will be deducted from theAccount holder.2% tax will be deducted if the customer withdraw more than 25000 in aday.

Requirements for the Saving account

CNIC of the customer CNIC of the next of KinCNIC of the Introducer Two photographs for the illiterate person.Specimen of the signatures of the educated personThe introducer must be an existing account holder.

Mark Up Rate is 1.2% per annum for 100 Rupees.

PLS Term Deposit

These type of deposits are offered for a term or a specific time period.The minimum deposit should be for the 7 days at least. If the customer will want to withdraw from the term deposit then the saving rate will beapplied on the amount.

Requirements





CNIC of the customer CNIC of the next of KinCNIC of the Introducer Two photographs for the illiterate person.

Specimen of the signatures of the educated personThe introducer must be an existing account holder.

Following Rates will be applicable depending upon the time periodinvolved.• For 7 days 1.2% per annum• For 30 days 1.5% per annum• For 3 Months 1.27% per annum• For 6 Months 1.8% per annum• For 1 Years 2% per annum• For 2 Years 2.3% per annum• For 3 Years 2.7% per annum• For 4 Years 3% per annum• For 5 Years and above 3.25% per annum

PLS Saver

The newly introduced scheme by the NBP is PLS Saver which is effectivefrom the 1.1.2007.The customers in this account deposit a lot of amount. On such amountthere is markup paid to account holders. Minimum balance requirement isRs. 20,000 and the maximum limit is 300,000. if balance of the accountwill be less than 5,000 than Rs. 50 to be deducted each month. Pension,Government employees, students, widow are exempted from thisrestriction. Zakat will be deducted from the Account holder.2% tax will bededucted if the customer withdraw more than 25000 in a day.

Requirements for the Saver accountCNIC of the customer CNIC of the next of KinCNIC of the Introducer Two photographs for the illiterate person.





Specimen of the signatures of the educated personThe introducer must be an existing account holder.

The mark up rate is 7.25% annually.

NBP Premium Aamdani

Under this deposit policy now the customer can earn monthly basisreturns on his amount. Minimum deposit of Rs. 50,000 and a maximumdeposit of Rs. 5,000,000 for 5 years. Free Demand Draft, Pay Order andNBP Online Aasan Banking. Free Cheque Book / NBP Cash Card (ATM +

Debit). Profit paid every month as follows

Period Profit Rates1 year 7.50%2 year 8.50%3 year 9.50%4 year 10.50%5 year 11.00%Profit rates are expectedCertain conditions apply

Premature encashment will result in lower rates of returnExpected rates are for the given year





Lending Policies of NBP

Basically lending policies are governed by SBP lending policies, however,NBP has some discountary powers in respect of lending policies. The

advances made by the NBP has increased so much and are involved increating a great amount of return for the bank. Deposits and theAdvances are the two important functions of any bank. NBP takesdeposits from the customers and lend them to the others for earning aprofit. The difference between the deposit rate and the lending rate will bethe benefit of the bank. Civil line branch of NBP is playing the mostimportant role in this category because it has a separate department todeal with the peoples those who want to have money. Civil line branch isdealing with the Corporate sector as well.

Working Capital and Short Term Loans:

NBP specializes in providing Project Finance – Export Refinance toexporters – Pre-shipment and Post-shipment financing to exporters –Running finance – Cash Finance – Small Finance – Discounting & Bills





Purchased – Export Bills Purchased / Pre-shipment / Post ShipmentAgricultural Production Loans

Medium term loans and Capital Expenditure Financing:

NBP provides financing for its clients’ capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients’ attempt to upgrade and expandtheir operation thereby making possible the fulfillment of our clients’vision. This type of long term financing proves the bank’s belief in itsclient's capabilities, and its commitment to the country.

Loan Structuring and Syndication:

National Bank’s leadership in loan syndicating stems from ability to forgestrong relationships not only with borrowers but also with bank investors.Because we understand our syndicate partners’ asset criteria, we helpborrowers meet substantial financing needs by enabling them to reach thebanks most interested in lending to their particular industry, geographiclocation and structure through syndicated debt offerings. Our syndicationcapabilities are complemented by our own capital strength and byindustry teams, who bring specialized knowledge to the structure of atransaction.

Cash Management Services:

With National Bank’s Cash Management Services (in process of being setup), the customer’s sales collection will be channeled through vastnetwork of NBP branched spread across the country. This will enable thecustomer to manage their company’s total financial position right fromyour desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services.In fact, with NBP, you’ll be provided everything, which takes to manageyour cash flow more accurately.

Generally Leading Policies Include:

Clean Credit ReportCompliance with maximum exposure by the bankCompliance with maximum exposure that can be allowed to a single partyFunded = 4 times of equity of the firm





Non-Funded = 10 times of equity of the firm

Lending Policies made by the NBP have categorized the loans in thefollowing types according to the requirements of the customers.

TYPES OF ADVANCES1. Security Vice

Clean AdvancesIn these types of advances only the personal

guarantee of the borrower is involved. The best example is the CreditCard.

Secured LoansThe loans the sectioned of those are associated with

the security. The securities may be of the following types:• Personal Guarantee• Personal Guarantee + Hypothecation• Pledge• Mortgage• Charge/Lien on the Current Asset

2. Period ViceThe loans that are designed according to the time periods needs.

•

Short Term Loans (For 1 year only)• Long Term Loans (For 5 years)

3. Utilization Vice The advances that are typically designed according to theutilization requirements of the loans.• Working Capital Requirement• Project Finance 4. Customer Vice

According to the customer • Consumer finance• SME lending• Corporate Financing

5. Sector Vice







• Security Evaluation from authorized Jewelers• BLA Report• IB 6A (Gold Agreement)• IB12 (Promissory Note)• IB 26 (Pledge of security)Any other document as per the requirement of the NBP.

Commercial & Industrial Finance

For the small businessmen those are doing business at commercial level mainlyfor sole proprietorship. The upper limit that will be sanctioned under this financeis Rs. 250,000. For small industrialists this facility is also available. In this casethe upper limit will be 500,000.Mark-up will be 12% and the loan is for 1 year.

Following documents will be required• CNIC• Complete information of Business• CIB Report• Application Form• Security Evaluation from authorized Jewelers• BLA Report• IB 6R (Finance Agreement duly signed by the Bank and customer)• IB12 (Promissory Note)• IB 26 (Pledge of security)• IB 25 (Hypothecation of stock)• HOX7 (Mark-up Rate Agreement)Any other document as per the requirement of the NBP.

Running Finance

This financing facility is also for short period of times, i.e for 1 year only. After 1year it must be renewed or cleared. It is mostly issued against some type of liquidassets, such as Defense Saving Certificates (DSC) or term deposits. These loansare typically taken for the working capital requirements. While sanctioning theloan the bank will create lien on the DSC or term deposit from the Issuing bank.There is no limit for the loan.75% of the DSC or Term Deposit will be given to the customer.







• Complete information of Business• CIB Report• Application Form• Security Evaluation from authorized Jewelers• BLA Report• IB 6R (Finance Agreement duly signed by the Bank and customer)• IB12 (Promissory Note)• IB 25(Hypothecation)• HOX7 (Mark-up Rate Agreement)Any other document as per the requirement of the NBP.

Cash Finance

The limit of this type of cash is above 500,000. It is both for long run and shortrun.This type of loan is mostly sectioned to big industrials and businessmen.The main advantage of this type of advance is that the customer can have loan upto his requirement within the limit that has been sectioned to him. The mark upwill be charged on the amount that has been used by the customer not on thewhole, which is the case in Demand Finance.Mark Up Rate is KIBER+2.3% Per annum.

Documents Requirement• CIB Report• Application Form• Security Evaluation from authorized Jewelers• BLA Report• IB 6R (Finance Agreement duly signed by the Bank and customer)• IB12 (Promissory Note)• IB 26 (Pledge of security)• HOX7 (Mark-up Rate Agreement)• IB 25 (Hypothecation of Stock)Any other document as per the requirement of the NBP.





Agriculture Finance

NBP provides Agricultural Finance to solidify faith, commitment and prideof farmers who produce some of the best agricultural products in theWorld.

Agricultural Finance Services:

“I Feed the World” program, a new product, is introduced by NBP withthe aim to help farmers maximize the per acre production with minimum of required input. Select farms will be made role models for other farms andfarmers to follow, thus helping farmers across Pakistan to increaseproduction.

Agricultural Credit:

The agricultural financing strategy of NBP is aimed at three mainobjectives:-

• Providing reliable infrastructure for agricultural customers• Help farmers utilize funds efficiently to further develop and achievebetter production• Provide farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term):

• Production and development• Watercourse improvement• Wells• Farm power • Development loans for tea plantation• Fencing• Solar energy• Equipment for sprinklers

Farm Credit:





NBP also provides the following subsidized with ranges of 3 months to 1year on a renewal basis.

• Operating loans• Land improvement loans• Equipment loans for purchase of tractors, farm implements or anyother equipment• Livestock loans for the purchase, care, and feeding of livestock

Production Loans:

Production loans are meant for basic inputs of the farm and are shortterm in nature. Seeds, fertilizers, sprayers, etc are all covered under this

scheme.The mark up Rate is Fixed 12% annually.