Nbp Report (Vu)

8/6/2019 Nbp Report (Vu)

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17. MANAGEMENT INFORMATION SYSTEM (MIS 5418. Structure of the MIS Department 57

19. Functions of the MIS Department 58

20. SWOT ANALYSIS 59

21. COMPETITIVE ANALYSIS 6322. SUGGESTION: 6523. RECOMMENDATIONS 63

24. References 74

2.EVOLUTION OF BANKS IN PAKISTAN

National Bank of Pakistan (NBP) was established under the National Bank of

Pakistan Ordinance 1949. The primary objective of NBP was to purchase jute fromthe growers in the former East Pakistan and also to perform the commercial banking functions in the country.

National Bank of Pakistan is now the biggest financial institution with assetstotaling over Rs.310 billion with 1428 local and 23 foreign branches. The bank isthe higher financer in agriculture and commodity operation sector.

3.PRESENT STATUS AND HISTORY

National Bank of Pakistan maintain its position as Pakistanis premier Bank determined to set higher standards of achievements. It is the major business

partner for the government of Pakistan with special emphasis on fosteringPakistanis economic growth through aggressive and balanced lending policies,technologically oriented branches.


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The National Bank of Pakistan came into existence on 20th November 1949 under the National Bank of Pakistan Ordinance No.21 of 1949.It is asemipublic bank and functions like other commercial banks. Therefore it receivesfunds from the depositors and provides loans/credit facilities in all sectorsincluding trade, industry and agriculture. It also functions as an agent of theCentral Bank and operates the treasuries at places where no branch of State Bank of Pakistan exists. The National Bank of Pakistan was also nationalized, along withother banks, in January 1974. The Bank of Bahawalpur was also merged into thisBank.

MANAGEMENT

An Executive Board composed of six Senior Executives of the Bank and the

President who is also the Chief Executive supervises the affairs and business of theBank.

CAPITAL

The authorized capital of the Bank is Rs.2500 million divided into 100million ordinary shares of Rs.10 each. After nationalization, all the shares held by

persons other than the Federal Government or Corporations i.e., owned andcontrolled by the Federal Government was considered as transferred and vested inthe Government.

BRANCHES

The Bank had a network of 1531branches in the country and 28 branches inforeign countries. These countries are as follows:1) - United States of America2) - United Kingdom3) - France4) - Germany5) - Africa, Middle East Region6) - Bahrain Obu7) - Asia Pacific Region8) - Japan9) - Republic of Korea10) - Central Asian States


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11) - Bangladesh12)-Peoples Republic of China13) -Pakistan.

The main of the study in hand is together relevant information to compileinternship report on National Bank of Pakistan.

To observe, analyze and interpret the relevant data competently and in auseful manner.

To work practically in an organization. To develop interpersonal communication.

4.Banking Reforms 1972

After the assumption of office by a new government in 1971, may 1972different reforms were introduced to make the banks more responsive to therequirements of economics growth with social justice. The reforms aimed at

bringing about a more purposeful and equitable distribution of bank credit,improving the soundness and efficiency of the banks, and securing greater socialaccountability of the banking system as a whole.The role of the banking system had been truly spectacular in mobilizing savings of the community and meeting the credit needs of the economy. But at the same time,the banks had generally neglected their role in promoting social justice and hadfailed to play an effective role in ensuring a wider and more equitable dispersal of

the benefits of economic growth. In particular the inter locking of ownership withcommercial and industrial interests had led to the misuse of bank resources. Therewas a heavy concentration of credit in big accounts and in urban area. Creditfacilities for agriculture, small business, newly emerging exports and housing hadremained obviously inadequate while the banks indulged in capital financing infew selected business sectors and issued guarantees on behalf of favored clients,term clients, term financing facilities for industry were wholly absent.Under the banking reforms introduced in May 1972 the state bank of Pakistan wasaccorded wider powers. It was authorized to remove directors or managerial

personnel, if necessary and supersede the board of directors of a banking companyand appoint administrators during the period of such super session. It was alsoempowered to nominate directors on the board of every bank. As regard bank directors, it was provided that anyone defaulting in meeting his obligations to bank would forfeit his directorship. Moreover, it was laid down that no person couldserve as director of a bank for more than six years continuously. Each bank wasrequired to have a paid up capital of not less than 5 percent age of its deposits to be

progressively build up to 10 percent age over a period of time. The banks were also


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required to transfer 10 percentage of their profit their reserves every years after thereserve became equal to the paid up capital. With a view to diversity the ownershipof the banks, the banks were required to raise new capital from the market.Unsecured loans to directors, their families or firms and companies, were totally

prohibited.

The bank reforms also brought about the establishment of new institutions toachieve new objectives. A national credit consultative was setup under thesupervise of the state bank with representation form the government and the

private sector. It was assigned the task of determining of economys annual creditneeds within the safe limits of monetary and credit expansion with reference to theannual development plan. Such a credit plan was to cover the public and privatesectors. Alongside the National credit council and Agricultural AdvisoryCommittee was formed to allocate agriculture credit for various purposes, to

coordinate the operation or the agriculture credit agencies and to oversee the flowof credit to the designated targets. A standing committee on exports in general andthe new emerging exports in particular, was also established. With a view toencourage the banks to extend credit to small borrowers, a credit guarantee schemewas introduced under which the state bank under took to share any bonfire lossesincurred by the commercial banks in case of small loans of advances to agriculture.At the same time two financing institutions were established. The peoples FinanceCorporation was designed to provide finance to people of small means while the

National Development Finance Corporation was setup of finance public sector owned and managed industries and enterprises.

The banking reforms turned to be transitional and interim step and when they werehardly eighteen months old the government nationalized the banking systems, withthe following main objectives.

To enable the government to use the capital concentrated in the hands of afew rich bankers for the rapid economic development of the country and themore urgent social welfare objectives.

To distribute equitably credit too different classes sectors and regions. To coordinate the banking policies in various area of feasible joint activity

without eliminating healthy competition among banks.

The act passed for the nationalization of banks is known as the banks Nationalization Act 1974.Thus under this act the state bank of Pakistan and all the commercial banksincorporated in Pakistan and carrying business in or outside the country were


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brought under government ownership with effect from Jan 1, 1974. The ownership,management and control of all Pakistani banks stood transferred to and vested inthe Federal government. The shareholders were provided compensation in the formof federal government bonds redeemable at par anytime within the period of fifteenyears. Under the Nationalization act, the Chairman, Directors and Executives of various banks, other than those appointed by federal government were removedfrom their offices and the central boards of the banks and all local bodies weredissolved. Pakistan banking council was established to coordinate the activities of the Nationalized Commercial banks. At the time of Nationalization onDecember31, 1973 there were following 14 Pakistani commercial banks with 3323offices allover Pakistan and 74 offices in foreign countries:

National banks of Pakistan Habib bank limited Habib bank (overseas) limited United bank limited Muslim commercial bank limited Commerce bank limited Standard bank limited Australia bank limited Bank of Bahawalpur limited Premium bank limited Pak Bank limited Sarhad bank limited Lahore commercial limited Punjab provincial co-operative bank limited

The Pakistan banking council prepared a scheme for the recognition of banks. The bank (amalgamation) scheme 1974 was notified in April, providing for the amalgamation of the smaller banks with bigger ones and following the fiveunits in there phases:

National bank limited Habib bank limited United bank limited Muslim commercial bank limited Allied bank of Pakistan limited


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The first phase was completed on 30th June. 1974. When the bank Bahawalpur was merged with the National Bank of Pakistan. The premier Bank Limited withMuslim Commercial Bank limited and Sarhad Bank Limited and Pak bank limitedand renamed as Allied Bank of Pakistan limited.

The second phase was completed on 31st Dec.1974, when the commerce bank limited merged with the United Bank limited. The third and the final phasewere completed on 30th June, 1975 when the standard bank limited was mergedwith Habib Bank limited.

The nationalization was very smooth and gave very positive results.The number of branches, which stood at 3397 on Dec31, 1973, reached on 7661 byend June 1992. The bank deposits which stood at Rs. 1925 corers at the end 1973reached the highest mark about 323 corers

5.FINANCIAL POSITION

Different facts and figures of opening balances of the year 2007 about National bank of Pakistan which show the financial position are as under:

CAPITAL STRUCTURE National bank of Pakistan was incorporated with an issued capital of Rs. 15million.

AUTHORIZED CAPITAL

The bank has now the Authorized Capital of Rs. 25 billion .

SUBSCRIBED AND PAID-UP CAPITAL

The Subscribed and Paid-up Capital is Rs. 1.46 billion .

TOTAL DEPOSITS

National bank of Pakistan is the largest commercial bank of the country and

has Total Deposits of Rs. 362.87 billion .

ADVANCES


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The total Advances stood at Rs. 140.55 billion made by NBP in the form of

money at call and short notices, cash credit, loans for short and long periods.

INVESTMENTS

The total Investment rose to Rs. 143.53 billion. This total Investmentincludes PTC, TFC, and securities of Provincial of Federal Government.

PRE-TAX PROFIT

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

AFTER-TAX PROFIT

The after-tax profits of NBP have been Rs. 2.26 billion .

TOTAL ASSETS

The Total Assets of NBP are Rs. 432.81 billion which is a great

achievement.

TOTAL EXPENDITURES

The Total Assets of NBP are Rs. 26.30 billion which are very less as

compared to previous years expenditures.

6.PRODUCTS OF NATIONAL BANK OF PAKISTAN

Retail Product

1. Premium Aamdani Home PageUnprecedented Safety - Unprecedented Return

2. Premium Saver Home PageUnprecedented Safety - Unprecedented Return

3. Karobar Home PagePresident's Rozgar Scheme - Easy financing for self employment

4. Saibaan Home PageAffordable, Flexible & Convenient home financing for all
http://www.nbp.com.pk/Aamdani/index.htmhttp://www.nbp.com.pk/Premium/index.htmhttp://www.nbp.com.pk/Karobar/index.htmhttp://www.nbp.com.pk/Saibaan/index.htmhttp://www.nbp.com.pk/Aamdani/index.htmhttp://www.nbp.com.pk/Premium/index.htmhttp://www.nbp.com.pk/Karobar/index.htmhttp://www.nbp.com.pk/Saibaan/index.htm


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5. Advance Salary Home PageTake up to 20 Advance Salaries - Affordable Installations from 1 - 60 months

6.Cash Card Home PageOne Card does it all - ATM plus Debit Card in one

7. Investor Advantage Home PageInvest with Confidence - Marginal Finance Facility

8. Cash and Gold Home PageMeet your need for ready cash against your idle gold jewelry with no minimumlimits

9. Kisan Taqat Home Page

NBP KISAN Taqat

10. Kisan Dost Home Page NBP's affordable agricultural program offers you a wide range of financing

11.Online Home PageKnitting Links - AASAN Banking

12. NBP Helplinefrom 8:30 am to 10:00 pm

7.SAIBAAN SCHEME

NBP SAIBAAN DOCUMENTS FOR SALARIED CLASS

Application form (in original). CNIC copies of the applicant. Two references CNIC copies. Photographs of the applicant(06) Employment card copy. Appointment letter. Service Letter / Certificate. Salary cum service certificate. Last three Months salary Certificates. Branch Accounts statement last six months.
http://www.nbp.com.pk/advancesalary/index.htmhttp://www.nbp.com.pk/cashcard/index.htmhttp://www.nbp.com.pk/Margin/Index.htmhttp://www.nbp.com.pk/CashnGold/index.htmhttp://www.nbp.com.pk/KissanTaqat/Index.htmhttp://www.nbp.com.pk/KisanDost/Index.htmhttp://www.nbp.com.pk/Online/index.htmhttp://www.nbp.com.pk/advancesalary/index.htmhttp://www.nbp.com.pk/cashcard/index.htmhttp://www.nbp.com.pk/Margin/Index.htmhttp://www.nbp.com.pk/CashnGold/index.htmhttp://www.nbp.com.pk/KissanTaqat/Index.htmhttp://www.nbp.com.pk/KisanDost/Index.htmhttp://www.nbp.com.pk/Online/index.htm


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Last Three Month Utility Bills Approved Map Original property Documents. Aks Sajra. Fard Malkiat Naqal Intiqal Khasra Verification report National Evaluation Companys report. PT-I Sale Deed/ Registry. Processing Fee pay order for Rs.500/= Fee for Evaluator pay order ( in case of construction Rs.2000/= (in

case of Purchase Rs.3000/= Processing Fee pay for legal opinion order for Rs.1000/= Borrower Basic Facts Sheet Confidential Report ALICO DECLARATION FORM.

NBP SAIBAAN DOCUMENTS FOR BUSINESS CLASS

Application form (in original). CNIC copies of the applicant.

Two references CNIC copies. Photographs of the applicant(06) Business Related Documents. Last three years Business Record. Branch Accounts statement last one year. Last three month Utility Bills. ICIL- Department Verification ( Income Estimation) Approved Map

Registry / Sale Agreement Aks Sajra. Fard Malkiat Naqal Intiqal Khasra Verification report NOC


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National Evaluation Companys report. PT-I Sale Deed/ Registry. Processing Fee pay order for Rs.1000/=financing below Rs. 1 Million. Fee for Evaluator pay order Rs.3000/=financing between Rs. 1 to Rs.

4 Million. Processing Fee pay for legal opinion order for Rs.6000/= financing

above Rs.4 Million. Fee for Evaluator pay order ( in case of construction Rs.2000/= (in

case of Purchase Rs.3000/= Borrower Basic Facts Sheet Confidential Report ALICO DECLARATION FORM.

8.FOREIGN CURRENCY

Guaranttee The word guarantee means under taking.

Three parties are involved during the process of Guarantee

Principal (Seller). Guarantor (Bank). Beneficiary (Buyer).

Outward Remittance The outward remittance is the term which emphasizes thatto transfer amount from one country to another country.

The sources used to transfer the amount are Transfer Transactions (TT), DemandDraft (DD).The procedure of outward remittance is initially been undertaken thatwhen account holder fill the request letter. The request letter contain following

information are Request of debit. Amount to be mentioned. Beneficiary name. Beneficiary account no.


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There is the concept of two accounts are NOSTRO A/C, VOSTROA/C.Western Union Western Union is the name of Australian Bank which providefacility of providing payment with out wasting time. There are 259 banks in worldwide who provide the facility where no bank exist

The amount sent to other place for this we do require certain documents areID copy name of the person to whom the amount is sent .Then Bank will assignPIN CODE .The amount is send with in 15 minutes. When the receiver go to the

bank to receive the amount he had to show his ID COPY or ORIGINALPASSPORT then the authorize officer will identify through NADRA itsidentification.

CHARGES

Minimum charges will be received is $20.Commission will be charged or Rs. 1200.

Inward Remittance In this department the process is contrary to outwardremittance the amount from foreign country to the Pakistan. In this case theamount received is in the form of cheque, Pay order etc.

9.EXPORT DEPARTMENT

Collection The collection Department is the initial phase of the export department.

First E-Form is to provided to the party .It is given on following criteria

The current account of the exporter should be activated for the issue of the E-Form.

TYPES OF E-FORM

There are four types of form are

Original. Duplicate.


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Triplicate. Quadrapled.

The Banks are involved between the parties .All deals and documentation are

made between the banks. The bank of Seller and Buyer contact with their partyabout the transaction when there is no conflict between the party the process goeson until transaction is completed.

10. IMPORT DEPRTMENT

In this department they deal with the following section to process the ImportDepartment.

LC opening.

Lodgment. Retirement of LC.

LC OPENING

Firstly Importer presents the Proforma Invoice to the bank ThenImporter will fill the form (IB-8) which cost Rs.100 .Proforma should not beexpired.

C&F(exporter will pay ),FOB( Importer will pay shipment charges) should bementioned on the form. The LC opening application form requires certaindocuments are

Name and address of the applicant. Name and address of the beneficiary. Insurance detail. Nature of LC.

Commodity.

LC LODGEMENT


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After LC opening Exporter bank will send document to the Importer Bank for the purpose of LC. Advisory bank is the correspondent bank. In case of anydiscrepancy found and is accepted then the $50 is charged for further processing.

Normally the discrepancy is created after shipment. When the documents areaccepted by Importer and Exporter then payment is to be made.

RETIREMENT OF LC

At time of payment or retirement we deal with following Import channel areLC.

Advance Payment.

Payment after shipment. Foreign DD & TT.

LETTER OF CREDIT

LC further categorize in to two things are Sight.Usances.

In case of sight the charges are taken as follows

MARK UP = B.E*Days* 0.4%

1000

In case of Usance the charges are

P&T charges of Rs.400.

Service charges of 0.1%of B.E

Commission is deducted from the party at the time of expiry. When the period

is delayed of 1 month then charge 0.1%, if the period is 2 month then charges is0.2%.FED 5% on total commission

SERVICE CHARGES

The charges of 0.1% of Bill of Exchange is charged. After the period of 15 daysthen the commission is charged .FED is charged on 5% on commission.


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ADVANCE OF PAYMENT

The payment is made to the party in advance to the exporter through bank.The bank also deduct margin from the Importer so that bank could serve itself

SERVICE CHARGES

Minimum commission for the amount less $400.At increase of every $1000 $ ischarged.

FED is to be charged of 5%on commission amount.

P&T is charged of Rs.400

11.DIFFERENT SCHEMES CONDUCTED BY NBP

National Bank of Pakistan always makes efforts to improve its

goodwill in the general public. It introduces different kind of schemes time to

time.

The most popular schemes conducted by NBP are as under:

1 ... ... Hajj Mubarak Scheme

2 ... ... NBP Advance Salary Scheme

3 ... ... Fund Management Scheme

4 ... ... LG TV Scheme

1. HAJJ MUBARAK SCHEMEFor the convenience of a person with a limited income who desire to perform

Hajj, Hajj Mubarak Scheme is introduced. Moreover, National Bank of Pakistan

process the Hajj applications of thousands of people successfully more than any

other bank in Pakistan.


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2. NBP ADVANCE SALARY SCHEME

Do you need urgent funds? If yes then head to National Bank of Pakistan and

avail NBP Advance Salary Scheme, which allow you to draw three months

salary in one go. This facility is available to permanent employees of the:-1 ... ... Federal and Provincial governments

2 ... ... Semi-governments, autonomous, semi-autonomous, local bodies,

and government corporations

3 ... ... Other corporations approved by NBP

No guarantee, collaterals, or insurance is required to avail this scheme.

NBP gives the facility to repay the excessive amount within 1 to 36 months. The

procedure is very easy, just fill the application form and choice between 1 to 36

months and take your NBP Advance Salary within 3 days after submitting your

form.

3. FUND MANAGEMENT SCHEME

This scheme is offered to corporate under customer and is aimed at providing

better rate of return up to 15% per annum. One of the objectives of the scheme is to

develop the secondary market for government securities.

4. LG TV SCHEME

It is the most popular of NBP schemes for people. corporates with LG

Appliances Corporation. If you want a TV set but has not enough money to

purchase it then head to NBP, fill an application form of LG TV Scheme. NBP

gives you the facility to pay for the TV set in smaller installments during a time period of 2 years.

Any one can avail this scheme. Two government employees are required to

present the witness to repay the loan if the applicant is unable to repay the loan or

the applicant should have the Fixed Term Deposit in NBP more worthily than the


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amount advanced to the applicant and it should have the duration of more than two

years.

12.ORGANIZATIONAL STRUCTURE

In this section four topics are discussed. The major topics of this section are:

1. Management and Organization of a Commercial Bank 2. Senior Management3. Regional Structure4. Branch Structure

1. MANAGEMENT AND ORGANIZATION OF A COMMERCIAL BANK

The ownership, management, and control of all the commercial bankswere taken over by the Government of Pakistan on January 1st, 1974.

A banking council was formed under the Nationalization Act 1974. The bankingcouncil was set up for making policy recommendations to the Federal Government,formulating policy guidelines for the banks and their reorganization.The management and organizational structure of the nationalized banks haveuniformity. This management and organizational structure is briefly described asunder:

Board of Directors Executive Board Chief Executive Divisional Chiefs Provisional Chiefs Circle Executive Zonal Heads Branch Managers


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1.1 Board of DirectorsIn the management of the banks, the board of directors is at the top of thecontrolling body. Since there are no private share holders now, so there is nogeneral meeting of the share holders and no elected directors. The BOD consists of a nominated President, a Secretary, and 9 other members. The board has limitedadministrative powers because after the Nationalization Act 1974, most of powersare transferred to the Banking Council and Executive Board.

1.2. Executive BoardThe general direction and supervision of the affairs of commercial banks lies intheir respective Executive Boards. An EB also consists of a President, a Secretary,and 9 other members, appointed by the Federal Government.1.3. Chief Executive

The President of the Executive Board is the Chief Executive. He is the

administrative head of a bank and presides over the meetings of Executive Board. 1.4. Divisional ChiefsIn order to improve the management and operation of a bank, it has been split upinto a numbers of divisions. Each division of a bank is placed under thesupervision and control of Divisional Chief (also called the Senior Executive VicePresident or Executive Vice President) 1.5. Provisional Chiefs

In order to improve the performance of banking system, each bank has aProvisional Chief. PC has the powers for sanctioning finance and other creditfacilities. Each headquarter is situated in each province e.g. in Lahore, Peshawar,Quetta, and Karachi.

1. 6. Circle ExecutiveEach commercial bank has a number of circles placed directly under the controland supervision of Chief Executive. 1.7. Zonal Heads

Each circle is divided into a number of zones. These zones are administered byZonal Heads who hold the posts of Vice President or Assistant Vice President. 1.8. Branch Managers Each zone of commercial bank is divided into several

branches. The control and supervision of each branch is mostly entrusted toAssistant Vice President or Officer G-II.


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Complete organizational hierarchy chart has not been provided.

2.SENIOR MANAGEMENT

R. A. Kaleemi SEVP & Group Chief, OperationalGroup

Masood Karim SEVP & Grp Chf, Co. & InvstBanking Grp & Chf Fncl Officer

S. M. Rafique SEVP & Secretary Board of Directors

Derrick Cyprian SEVP & Group Chief, Special Assets& Remedial Mngt Group

Amin Akhtar EVP & PSO to the PresidentFarooqul Hassan EVP & Chief Presidents

Implementation SecretariatShahid Anwar EVP & Group Chief, Commercial &

Retail Banking GroupSafdar Khawaja EVP & Group Chief, Audit &

Inspection GroupAsif A. Brohi EVP & Group Chief, Strategic

Planning & Eco Research GroupJaved Mehmood EVP & Group Chief, Risk Management Group

M. Nusrat Vohra EVP & Group Chief, TreasuryManagement Group

Nadeem Dogar EVP & Group Chief, IT Planning &Implementation Group

Dr. Abrar Baig Head of Human ResourcesManagement Department

Uzma Bashir Head of Organization Development& Training Department

3.REGIONAL STRUCTURE


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REGIONALCHIEF

EXECUTIVE

GENERAL GENERAL GENERALMANAGER MANAGER MANAGER Advances, Legal Planning, Business Administrative

and Recovery Wing Development WingCustomer Servicesand Implementationof Audit

4.BRANCH STRUCTURE

MANAGER OG-I ADVANCE


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MESSANGER

OG-II ADMIN

OG-II OG-II OG-II OG-III

SERVICES CASHIER ACCOUNTS

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

GODOWN GODOWN GODOWN GODOWNKEEPER KEEPER KEEPER

KEEPER

HEAD MESSANGER

Comments on organizational structure?

13. Plan of My internship programPlan of internship is not according to the format. You did not provide thestarting and ending dates of internship program, brief introduction of thebranch.Writing an Internship Program Plan


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I carefully planed and wrote out my internship program and goals. Theinternship program and goals were measured by Bank management team andothers in organization. Structuring the internship ahead of time provided me withtangible goals and objectives that enabled me to prove myself for understandingthe importance of the organizations decision-makers and value of a well-developed internship program.In creating my internship program plan, it includes specific ideas, proposals, andlogistical information. I constructed my plan based on organizations needs andresources. The questions that follow many assist me in formulating an internship

program and plan.What about general support around the workplace? Does their organizationneed an intern to perform administrative and support functions including dataentry, answering telephones, filing, etc.? If so, approximately what percentage of the interns time will be spent on these activities?

Does the Bank want to give the intern a taste of everything that companydoes? How will cross-training be structured into the interns schedule?

How much time will need to be devoted to department/area?

Have employees from each department been designated to mentor the internon their particular department functions?

Will bank pay the intern? If so, how much?

Where should I do internship?

Do I have adequate workspace there?

Where will be the best environment and supportive persons etc.?

Who will have the primary responsibility for the intern?

Will that person be a mentor or merely a supervisor?

The assignment of mentor who will work closely with the intern can beessential in creating a successful experience for the organization and then intern.Ideally, the mentor should be someone from the department where the intern is


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working and who is very familiar with the projects and tasks the intern is workingon. This person doesnt have to be a teacher per se, but should be selected becausehe or she likes to teach or train and has the resources to do it. If the person youselect has never mentored an intern before, providing basic supervision andmentoring guidelines and training may enhance the experience for both the mentor and the intern.

What will the intern be doing?Be as specific as possible.Interns, like others in the process of learning,

need structure so they dont become lost, confused or bored.

Do you want to plan a program beyond the work you give your interns? Willthere be specific training programs, performance reviews, lunches with executivesor social events? Keep in mind that your interns are walking advertisements for

your company. If they have a good experience working for you, theyre likely totell their friendsword gets around. A bad internship, by contrast, can only hurtyour chances of attracting good students for next year.

Managing the Internship Starting out

I set up regular contact with the faculty sponsor. I Planed to email(meet) with your professor regularly over the term to discuss activities and reviewyour internship and progress towards your academic learning objectives. At aminimum, plan on keeping in regular touch via email.Arrange regular meetings with site supervisor. It is vital you meet regularly withyour site supervisor for direction, feedback, and answers to questions. Ideally thisshould be weekly, or at least bi-weekly.

I completed the required Orientation Check In form. After your firstcouple of weeks working in your site, complete this form and return it to theInternship Program office. It is very important that you get a solid start in your internship, and this is largely determined by how well you are initially oriented andtrained. I used the form as a way to talk with my supervisor to identify areas i needor want additional direction. This communication helps our office identifyinternships that may warrant a bit more attention early on to help make productivefor me. Also, on the form I am asked to note my work schedule so we can begin

planning site visits for the middle of the term.

During the internship


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I completed the required Evaluation of Intern form. I met with my site supervisor to review, signed and returned this form to the Internship Program office by therequested date.Site visit . The Internship Program Director and/or my faculty sponsor maycontacted me to arrange a site visit to meet with me and my supervisor. This is awonderful chance to discuss how the internship is going and to share some of thework you are doing in the internship.Problems? If, at any point during the internship, I was having problems that wereinterfering with the quality of the learning experience, I contacted the InternshipProgram Director for support and assistance.

Finishing up

I completed the required Final Evaluation of Intern form. As Iapproached the end of the term, met with my site supervisor to review and signedthis form and returned it to the Internship Program office. A copy of this is sent toyour faculty sponsor who uses it to help determine a final grade for your internshipexperience.Closure with my host organization I communicated in writing my appreciation tomy supervisor and co-workers for the attention and management they provided meduring my internship. This is an important professional courtesy and can benefitme in future networking.Closure with my Instructor I arranged a final meeting with my by mail instructor toreview the internship, discuss future plans, and submit my required assignment(s)as outlined in my Learning Contract. This must be done prior to the last day of class for the semester so my Instructor has time to submit a grade for your internship.

Irrelevant data has been provided in this section.14.DEPARTMENTALIZATION

Dividing an organization into different parts according to thefunctions is called departmentalization. So NBP is divided into Departments.

1. CASH DEPARTMENT

2. CLEARANCE DEPARTMENT


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3. ADVANCES DEPARTMENT

4. REMITTANCE DEPARTMENT

5. Department of HUMAN RESOURCE MANAGEMENT

6. DEPOSIT DEPARTMENT: -

7. FOREIGN EXCHANGE/DEPARTMENT :

1. CASH DEPARTMENTCash department performs the following functions

1.1) ReceiptThe money, which either comes or goes out from the bank, its record should bekept. Cash department performs this function. The deposits of all customers of the

bank are controlled by means of ledger accounts. Every customer has its ownledger account and has separate ledger cards.PaymentsIt is a bankers primary contract to repay money received for this customersaccount usually by honoring his cheques.1.3) Cheques and their PaymentThe Negotiable Instruments. Act, 1881,

Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

Since a Cheque has been declared to be a bill of exchange, it must have all itscharacteristics as mentioned in Section 5 of the Negotiable Instruments Act, 1881.Therefore, one can say that a Cheque can be defined as an:An unconditional order in writing drawn on a specified banker, signed by thedrawer, requiring the banker to pay on demand a sum certain in money to, or to theorder of, a specified person or to the bearer, and which does not order any act to bedone in addition to the payment of money. (Law of Banking by Dr. Hart, p.327).1.4) the Requisites of ChequeThere is no prescribed form of words or design of a Cheque, but in order to fulfillthe requirements mentioned in Section 6 above the Cheque must have thefollowing.

It should be in writing The unconditional order Drawn on specific banker only


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circumstances, which do not afford a reasonable ground of believing that he is notentitled to receive payment of the amount therein mentioned. It is a contractualobligation of a banker to honor his customers cheques if the following essentialsare fulfilled.

Cheques should be in a proper form: Cheque should not be crossed: Cheque should be drawn on the particular bank: Cheque should not mutilated: Funds must be sufficient and available: The Cheque should not be post dated or stale: Cheque should be presented during banking hours:

2. CLEARANCE DEPARTMENT

A clearinghouse is an association of commercial banks set up in givenlocality for the purpose of interchange and settlement of credit claims. Thefunction of clearinghouse is performed by the central bank of a country by traditionor by law. In Pakistan, the clearing system is operated by the SBP. If SBP has nooffice at a place, then NBP, as a representative of SBP act as a clearinghouse.

After the World War II, a rapid growth in banking institutions has taken place. Theuse of cheques in making payments has also widely increased. The collection assettlement of mutual obligations in the form of cheques is now a big task for all thecommercial bank. When Cheque is drawn on one bank and the holder (payee)deposits the same in his account at the bank of the drawer, the mutual obligationare settled by the internal bank administration and there arises no inter bank debitsfrom the use of cheques. The total assets and total liabilities of the bank remainunchanged.

In practice, the person receiving a Cheque as rarely a depositor of thecheque at the same bank as the drawer. He deposits the cheque with his bank other

than of payer for the collection of the amount. Now the bank in which the chequehas been deposited becomes a creditor of the drawers bank. The depositor bank will pay his amount of the cheque by transferring it from cash reserves if there areno offsetting transactions. The banks on which the cheques are drawn become indebt to the bank in which the cheques are deposited. At the same time, thecreditors banks receive large amounts of cheques drawn on other banks givingclaims of payment by them.


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The easy, safe and most efficient way is to offset the reciprocal claims againstthe other and receive only the net amount owned by them. This facility of net inter

bank payment is provided by the clearinghouse.

The representatives of the local commercial banks meet at a fixed time on allthe business days of the week. The meeting is held in the office of the bank thatofficially performs the duties of clearinghouse. The representatives of thecommercial banks deliver the cheques payable at other local banks and receive thecheques drawn on their bank. The cheques are then sorted according to the bank onwhich they are drawn. A summary sheet is prepared which shows the names of the

banks, the total number of cheques delivered and received by them. Totals are alsomade of all the cheques presented by or to each bank. The difference between thetotal represents the amount to be paid by a particular bank and the amount to be

received by it. Each bank then receives the net amount due to it or pays the netamount owed by it.

2.1) In-Word Clearing BooksThe bank uses this book for the purpose of recording all the cheques that are beingreceived by the bank in the first clearing. All details of the cheques are recorded inthis book. 2.2) Out-Word Clearing Book:

The bank uses outward clearing register for the purpose of recording all thedetails of the cheques that the bank has delivered to other banks. 3. ADVANCES DEPARTMENT

Advances department is one of the most sensitive and importantdepartments of the bank. The major portion of the profit is earned through thisdepartment. The job of this department is to make proposals about the loans. TheCredit Management Division of Head Office directly controls all the advances. Aswe known bank is a profit seeking institution. It attracts surplus balances from thecustomers at low rate of interest and makes advances at a higher rate of interest tothe individuals and business firms. Credit extensions are the most importantactivity of all financial institutions, because it is the main source of earning.However, at the same time, it is a very risky task and the risk cannot be completelyeliminated but could be minimized largely with certain techniques.


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Any individual or company, who wants loan from NBP, first of all has to undergothe filling of a prescribed form, which provides the following information to the

banker.

3.1) Name and address of the borrower.

Existing financial position of a borrower at a particular branch.Accounts details of other banks (if any).

Security against loan. Exiting financial position of the company. (Balance Sheet & Income

Statement). Signing a promissory note is also a requirement of lending, through this note

borrower promise that he will be responsible to pay the certain amount of money with interest.

3.2) Principles of Advances

There are five principles, which must be duly observed while advancingmoney to the borrowers.

Safety Character Capacity Capital Liquidity Dispersal Remuneration Suitability Forms of Loans Cash Finance Overdraft/Running Finance Demand Financing/Loans

a. SafetyBankers funds comprise mainly of money borrowed from numerous

customers on various accounts such as Current Account, Savings Bank Account,Call Deposit Account, Special Notice Account and Fixed Deposit Account. Itindicates that whatever money the banker holds is that of his customers who haveentrusted the banker with it only because they have full confidence in the expert


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handling of money by their banker. Therefore, the banker must be very careful andensure that his depositors money is advanced to safe hands where the risk of lossdoes not exist.The elements of character, capacity and capital can help a banker in arriving at aconclusion regarding the safety of advances allowed by him. b. CharacterIt is the most important factor in determining the safety of advance, for there is nosubstitute for character. A borrowers character can indicate his intention to repaythe advance since his honesty and integrity is of primary importance. If the pastrecord of the borrower shows that his integrity has been questionable, the banker should avoid him, especially when the securities offered by him are inadequate incovering the full amount of advance.It is obligation on the banker to ensure that his borrower is a person of character

and has capacity enough to repay the money borrowed including the interestthereon.

c. CapacityThis is the management ability factor, which tells how successful a business has

been in the past and what the future possibilities are. A businessman may not havevast financial resources, but with sound management abilities, including the insightinto a specific business, he may make his business very profitable. On the other hand if a person has no insight into the particular business for which he wants to

borrow funds from the banker, there are more chances of loss to the banker.

d. CapitalThis is the monetary base because the money invested by the proprietors representstheir faith in the business and its future. The role of commercial banks is to provideshort-term capital for commerce and industry, yet some borrowers would insist thattheir bankers provide most of the capital required. This makes the banker a partner.As such the banker must consider whether the amount requested for is reasonableto the borrowers own resources or investment.

e. LiquidityLiquidity means the possibilities of recovering the advances in emergency, becauseall the money borrowed by the customer is repayable in lump sum on demand.Generally the borrowers repay their loans steadily, and the funds thus released can

be used to allow fresh loans to other borrowers. Nevertheless, the banker mustensure that the money he is lending is not blocked for an undue long time, and thatthe borrowers are in such a financial position as to pay back the entire amount


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purpose in conformity with the current national credit policy laid down by thecentral bank of the country.

i. Forms of LoansIn addition to purchase and discounting of bills, bankers in Pakistan generally

lend in the form of cash finance, overdrafts and loans. NBP provides advances todifferent people in different ways as the case demand.

j. Cash FinanceThis is a very common form of borrowing by commercial and industrial concernsand is made available either against pledge or hypothecation of goods, produce or merchandise. In cash finance a borrower is allowed to borrow money from the

banker up to a certain limit, either at once or as and when required. The borrower prefers this form of lending due to the facility of paying markup/services charges

only on the amount he actually utilizes.If the borrower does not utilize the full limit, the banker has to lose return

on the un-utilized amount. In order to offset this loss, the banker may provide for asuitable clause in the cash finance agreement, according to which the borrower hasto pay markup/service charges on at least on self or one quarter of the amount of cash finance limit allowed to him even when he does not utilize that amount.

k. Overdraft/Running FinanceThis is the most common form of bank lending. When a borrower

requires temporary accommodation his banker allows withdrawals on his accountin excess of the balance which the borrowing customer has in credit, and anoverdraft thus occurs. This accommodation is generally allowed against collateralsecurities. When it is against collateral securities it is called Secured Overdraftand when the borrowing customer cannot offer any collateral security except his

personal security, the accommodation is called a Clean Overdraft. The borrowing customer is in an advantageous position in an overdraft, because he hasto pay service charges only on the balance outstanding against him. The maindifference between a cash finance and overdraft lies in the fact that cash finance isa bank finance used for long term by commercial and industrial concern on regular

basis, while an overdraft is a temporary accommodation occasionally resorted to.

l. Demand Financing/LoansWhen a customer borrows from a banker a fixed amount repayable either

in periodic installments or in lump sum at a fixed future time, it is called a loan.When bankers allow loans to their customers against collateral securities they are


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called secured loans and when no collateral security is taken they are calledclean loans.The amount of loan is placed at the borrowers disposal in lump sum for the periodagreed upon, and the borrowing customer has to pay interest on the entire amount.Thus the borrower gets a fixed amount of money for his use, while the banker feelssatisfied in lending money in fixed amounts for definite short periods against asatisfactory security

4. REMITTANCE DEPARTMENT

Remittance means a sum of money sent in payment for something. Thisdepartment deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. NBP offers the followingforms of remittances.

Demand Draft Telegraphic Transfer Pay Order Mail Transfer

4.1) Demand DraftDemand draft is a popular mode of transfer. The customer fills the

application form. Application form includes the beneficiary name, account number and a senders name. The customer deposits the amount of DD in the branch. After

the payment the DD is prepared and given to the customer. NBP officials note thetransaction in issuance register on the page of that branch of NBP on which DD isdrawn and will prepare the advice to send to that branch. The account of thecustomer is credited when the DD advice from originating branch comes to theresponding branch and the account is debited when DD comes for clearance. DDare of two types.

Open DD: Where direct payment is made. Cross DD: Where payment is made though account.

NBP CHARGES FOR DD5

Up to Rs. 50,000/- is Rs 50/- only Over Rs. 50,000/- is 0.1%

4.2) Pay OrderPay order is made for local transfer of money. Pay order is the most

convenient, simple and secure way of transfer of money. NBP takes fixed


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commission of Rs. 25 per pay order from the account holder and Rs. 100 from anon-account holder.

4.3) Telegraphic TransferTelegraphic transfer or cable transfer is the quickest method of making

remittances. Telegraphic transfer is an order by telegram to a bank to pay aspecified sum of money to the specified person. The customer for requesting TTfills an application form. Vouchers are prepared and sent by ordinary mail to keepthe record. TT charges are taken from the customer. No excise duty is charged onTT. The TT charges are:Telegram/ Fax Charges on TT = Actual-minimum Rs.125.Cable telegram transfer costs more as compared to other title of money. In cabletransfer the bank uses a secret system of private code, which is known to the

person concerned with this department and branch manager.

4.4) Mail TransferWhen the money is not required immediately, the remittances can also be

made by mail transfer (MT). Here the selling office of the bank sends instructionsin writing by mail to the paying bank for the payment of a specified amount of money. Debiting to the buyers account at the selling office and crediting to therecipients account at the paying bank make the payment under this transfer. NBPtaxes mail charges from the applicant where no excise duty is charged. Postagecharges on mail transfer are actual minimum Rs. 40/- if sent by registered postlocally Rs.40/- if sent by registered post inland on partys request.5. Department of HUMAN RESOURCE MANAGEMENT

Human Resource plays a vital role in the success of every serviceorganization. They interact between man and machine. Their attitude can win or loose the customer. The positive attitude could only be created in a conduciveenvironment, which can make the staff dedicated towards the organization and itsobjectives. In reality the man is more important than machine as it is the humanwhich could get maximum out of machine to keep a happy customer. However,most organizations give little importance to this very important asset.Various aspects related to human resource of National Bank of Pakistan arecritically examined in the following text:

5.1) Selection & RecruitmentAlthough the Bank believes in merit but in practice the selection of employees isnot done on merit. Most of the employees are low educated. This shows that


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5.3) Performance AppraisalThe performance of employees of the Bank are appraised though their annualconfidential reports at the end of each year. This has become an outdated methodof performance appraisal and no longer used due to the following reasons:

The performance of employees is evaluated after quite a long time. Element of subjectivity is involved in this method. Employees participation is not ensured in the process of evaluation. Objectives of employees are not quantified.

5.4) Inter Personal RelationshipModern management acknowledges human resources as one of the most

important assets of an organization. But by their very nature, human beings arealso the most unpredictable. Where a number of persons work together,interactions among them, of necessity, will lead to conflicts and NBP is noexception. Most interpersonal conflicts in NBP can be traced back to the followingmajor heads.

Lack of Communication Lack of communication is for the biggest reason for conflicts. Not only it is due to the failure to send a massage but to an interpretation

given to the massage by the receiver is different from that intended.

5.5) Diversity in ValuesDiversity in values, perceptions, cultural background and life-style is another

reason responsible for inter personal conflicts in NBP. Different values and perceptions about the same issue, event or personality hinder understanding. Whenthings come to such a pavement, therefore, interpersonal conflicts are generated.The dominant trend in all modern industrial societies of the world is merit andexpertise, which helps promote cohesion and reduce conflicts. But the feudalisticmindset is still very strong in our set up and there is no tradition of tolerance for differing viewpoints. Hence, interpersonal conflicts are generated.

5.6) CorruptionOur social acceptance of corruption gives rise to corruption at every level

of social and organizational set up. Corruption involves financial embezzlement,favoritism, nepotism, cronyism and other number of such practices. All these causeresentment that keep building up and lead to conflict sooner or later.


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In the past few years, some cases of frauds have happened in different branches.The reasons can be linked with the employee dissatisfaction of NBP.

5.7) Discipline & AuthorityMaintaining discipline and implementation of authority (tables) in letter and

spirit is the key to success of any organization. In NBP, The authority tables arenot strictly maintained. Line managers are not fully equipped with the authoritywith no vertical or horizontal interference.

6.) DEPOSIT DEPARTMENT: - It controls the following activities:

A/C opening. Issuance of cheque book. Current a/c Saving a/c Cheque cancellation Cash

6.1) Account openingThe opening of an account is the establishment of banker customer

relationship. Before a banker opens a new account, the banker should determinethe prospective customers integrity, respectability, occupation and the nature of

business by the introductory references given at the time of account opening.Preliminary investigation is necessary because of the following reasons.

Avoiding frauds Safe guard against unintended over draft. Negligence. Inquiries about clients.

There are certain formalities, which are to be observed for opening an account witha bank.

Formal Application Introduction Specimen Signature Minimum Initial Deposit Operating the Account Pay-In-Slip Book Pass Book


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Issuing Cheque Book


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6.1.1) Qualification of CustomerThe relation of the banker and the customer is purely a contractual one,

however, he must have the following basic qualifications. He must be of the age of majority.

He must be of sound mind. Law must not disqualify him.The agreement should be made for lawful object, which create legal relationship

Not expressly declared void.

6.1.2) Types of Accounts Following are the main types of accounts

Individual Account Joint Account Accounts of Special Types Partnership account Joint stock company account Accounts of clubs, societies and associations Agents account Trust account Executors and administrators accounts Pak rupee non-resident accounts Foreign currency accounts

6.2 Issuing of cheque book:

This deptt issue cheque books to account holders.Requirements for issuing cheque book

The account holder must sign the requisition slip Entry should be made in the cheque book issuing book Three rupees per cheque should be recovered from a/c holder if not then

debit his/her account.

6.3 Current accountThese are payable to the customer whenever they are demanded. When a

banker accepts a demand deposit, he incurs the obligation of paying all chequesetc. drawn against him to the extent of the balance in the account. Because of their nature, these deposits are treated as current liabilities by the banks. Bankers inPakistan do not allow any profit on these deposits, and customers are required to


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maintain a minimum balance, failing which incidental charges are deducted fromsuch accounts. This is because the depositors may withdraw Current Account atany time, and as such the bank is not entirely free to employ such deposits.Until a few decades back, the proportion of Current Deposits in relation to FixedDeposits was very small. In recent years, however, the position has changedremarkably. Now, the Current Deposits have become more important; but still the

proportion of Current Deposits and Fixed Deposits varies from bank to bank, branch to branch, and from time to time.

6.4) Saving accountSavings Deposits account can be opened with very small amount of

money, and the depositor is issued a cheque book for withdrawals. Profit is paid ata flexible rate calculated on six-month basis under the Interest-Free BankingSystem. There is no restriction on the withdrawals from the deposit accounts but

the amount of money withdrawn is deleted from the amount to be taken for calculation of products for assessment of profit to be paid to the account holder. Itdiscourages unnecessary withdrawals from the deposits.

In order to popularize this scheme the State Bank of Pakistan has allowed theSavings Scheme for school and college students and industrial labor also. The

purpose of these accounts is to inculcate the habit of savings in the constituents. Assuch, the initial deposit required for opening these accounts is very nominal.

6.5) Cheque cancellation:This deptt can cancel a cheque on the basis of;

Post dated cheque Stale cheque Warn out cheque Wrong sign etc

6.6) CashThis deptt also deals with cash. Payment of cheques, deposits of cheques etc.

7. FOREIGN EXCHANGE/DEPARTMENT:

This deptt mainly deals with the foreign business. The main functions of thisdeptt are:

L/C dealing. Foreign currency accounts dealing. Foreign Remittance dealing.


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7.1) L/C dealingNBP is committed to offering its business customers the widest range of

options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates,security, and ease of transaction, NBP Letters of Credit are the best way to do your

business transactions. 7.2) Foreign currency account dealing:

This deptt deals with the foreign currency accounts which mainly includedollar account, euro account etc. 7.3) Foreign Remittance dealing.This is very important function of this deptt.

15. DEPARTMENTATION OF NBP BAHAWALNAGAR MAIM BRANCH .

I did internship in Main branch BWN (Bahawalnagar) in Punjab province.Here the Manager, Muhammad Arshad Nagra and the Operational Manager Muhammad Amin and other staff members give full assistance and cooperationduring my internship period.The stating date was November11 2008 and ending date was December 22 2008

of my internship period.This is the core section of your internship report. You should provide the detaileddescription of the tasks assigned to you during your internship program, and thissection should be under training program.The tasks assigned to me during internship duration .During the internship period I was assigned the tasks as fallow:1. Data entry in computer 2. Maintaining D.Ds and T.Ts. Registers3. Customer Dealing about the banks products4. Maintaining the cash department.5 Maintaining the I.T Department6. Accounts opening and closing7. Online banking8. Maintaining saving and current accounts.9. Observing the managerial decision making

Dividing an organization into different parts according to their functions is calleddepartmentation. So NBP Bahawalnagar branch is divided into parts.


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Pension payments etc. Closing and scrolling of government collections.

2.2 Advances department:

Every bank has a department which advances money to borrowers. In NBPBahawalnagar branch the advances department is head by the Business Manager Sir Asim and Operation Manager Sir Amin. Both are very competent persons. Theobjective of Advances Department is

To facilitate people by giving short term and long term loans on easy termsand conditions.The main function of this Department is to take surplus money from the people atlow rates and lend this money to borrowers at high rates to earn profit.

2.3 Clearing Department:A clearing house is an association of commercial banks set in State Bank

of Pakistan for the purpose of interchange and settlement of credit claims.In NBP Bahawalnagar Branch this department is headed by Ameer Shehzad havingexperience of about thirty years. The objective of this department is to

To facilitate customers for payment their Cheques of other banks.

Two type of clearing books are maintained.

i) In word clearing books:The bank uses this book for the purpose of recording all the cheques that are beingreceived by the bank in the first clearing. All detail of the cheques are recorded inthis book.ii) Out word clearing book:The bank uses outward clearing register for the purpose of recording all the detailsof the cheques that the banks have delivered to other banks.


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2.4 Computer Department:This department headed by the accountant Mr.Saad and two other persons

Mr. Junaid and Mr. Shahid are performing the real function.

The objective of this Department is to facilitate customers in payment of their cheques.The main functions performed by this department are:

Checking balance. Deduction from balance on clearing cheques. Issuing bank statements. Dealing Western Union.

2.5 Establishment Department:NBP Bahawalnagar Branch having an Establishment Department. This

Department consists of only one person Nasir Baig very competent andexperienced person. This department mainly deals with the branch employees. Themain objective of this department is to To regulate bank business.

Main functions of this department are: Keeps the record of attendance of employees. Employees salaries distribution. Employees bonuses etc.

16.General observation during Training Program

TRAINING SUBSTANCE

In this section topic discussed is as under:

Work performed by me

Tasks assigned to you should be under this section.Tasks assign ed to you should be under this section.

WORK PERORMEDBY ME


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I joined National Bank of Pakistan, Main Branch Bahawalnagar on 11 th

November, 2008. First day, the manager introduced me about the functioning of the branch and the staff. The manager told me that counter is the most important

place of the bank. During the six weeks of my internship, I worked in differentdepartments of the branch and did the maximum practice of banking system detailsof which is as under:

GENERAL BANKING

First of all, I was asked to work in different sections of general banking. I was

attached to Counter with Mr. Kashif who has good command on this section. Here

we dealt with new customer who wanted to get information and to deal with the

branch. This is a very interesting department because here we met people of

different types and deal with them accordingly. In this section, I observed the

following functions:

CHEQUE AT COUNTER

A cheque to withdraw the amount is presented on the counter with the

following requisites:

1 ... ... Name of the Account Holder

2 ... ... Current or previous date

3 ... ... Amount in figures

4 ... ... Amount in wording

5 ... ... One signature of the account holder in the right bottom corner of thecheque and two signature of the bearer on the back

6 ... ... Branch Stamp in front of the cheque

7 ... ... If the Account Holder uses thumb instead of signature then the Pass

Book is necessary with the cheque


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Operations officer checks and verifies all these requisites. If it fulfills all the

requisites, it is forwarded for payment after a certain procedure.

CHEQUE PAYMENT PROCEDUREAfter all the requisites are verified and then the excessive balance is

checked and prescribed amount is deducted narrated on the cheque, then

SIGNATURE VERIFIED stamp (in case of signature only) on the signature and

a PAY CASH stamp are fixed and a Token is given to the cheque bearer after

writing Token No. on the specified cheque. Then the Officer G-II verified the

cheque and forwarded it to the cashier where the cheque bearer receives the

amount from the account.

ISSUANCE OF DEMAND DRAFT

A Demand Draft is provided to the client in which he has to specify that

bank it is drawn. The amount both in words and figures is written on Demand

Draft.

BILLS COLLECTIONS DEPARTMENT

I spent second week of my training in bills collection department. Mr. Afzal

is the in charge of this section. Here we collected utility bills like electricity bills,

gas bills, and telephone bills.

BILL REMITTANCE DEPARTMENT

This is very important and interesting department. This section deals with

the transfer of money from one branch to another branch. Nearly four drafts areissued daily from this department. Here I know how the amount is transferred

and what the procedure is. This department also deals with TT transfer of

money. I worked nearly two weeks in this department.


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DEPOSIT DEPARTMENTDEPOSIT DEPARTMENT

Deposit department deals with Current, Savings, and Fixed Accounts. In

current account the bank does not give any interest and you can deposit the

whole amount in lump sum in business hours.However in PLS savings account we can only withdraw up to Rs.25000/-

without any notice otherwise a prior notification of a weak is required to the

bank if the amount to be withdrawn is more than Rs.25000/-

Old ages are interested in Fixed Account usually. The rate of interest is

higher more than that of in Current and PLS savings Account but the amount

cannot be withdrawn before a specific time fixed by the client.

To open the account customer have to fulfill an application form and submit

to the concerning authority. In Current and PLS saving Account, a Cheque

Book is issued to the client and he becomes the Account Holder of NBP. I

worked in this department for one and a half week.

I have divided general observation in four parts. Which are as under: Thisanalysis is mainly based on my general observation.

Problems at the branch. Function analysis. Administrative analysis. Personal managements analysis.

1. PROBLEMS AT THE BRANCH

1.1 Customer SatisfactionIn NBP customer dealing is well, but during rush hour the customer has to wait for a long time for their turn. Its quite hard for a new customer or potential customer to get the required information.1.2 Poor record management and filing system


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During my internship I observed that filing system of branch is not good. Whencertain record is needed the staff has to struggle to find it out and a lot of time iswasted.1.3 Unequal distribution of work Work is not equally distributed. On one hand some employee have to work all daywithout relaxing while some others have nothing to do at all. This not only createsconfusion among employees but also hurting and disturbing for overall setup of the

bank. And above all it results in dissatisfaction among customers as well.


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1.4 Marketing visitsA useful mode of contact is through personal marketing visits. Such visits areimportant in informing and perusing the existing and potential customers about the

products and creating a sense of belongingness with them.

2. FUNCTIONAL ANALYSIS

2.1 Formal OrganizationFormal organization includes the activities of two or more person, which arecautiously determined groups and coordinated towards a given objective. It

provides base when people are able to communicate with other, when they havecommon purpose and they are willing to work.In NBP, we find a formal organization. Bernard referred to an organization as aformal when the activities of two or more persons are coordinated towards a given

objective. The formal organization comes into being when people are able tocommunicate with one another or willing to act and share a purpose.In this formal organization of NBP the activities are carried out in a more formalway. In theoretical terms it provides basis for communication with one another butin practice it is not exercised because an employee at high level cannot get straightaway to manager or SVP and ask him about of his problem faced by him, becausefirst he has to talk to his immediate superior and follow a proper channel of communication.

2.2 Difference between theory and practiceA vast difference exists between theory and practice and NBP has written procedure but practical work done by employees is a bit different from written procedures.

2.3 Bank duty to maintain secrecy.They dont care about maintaining secrecy, especially during the rush hours. Theyspeak loudly about the account position and while getting clearance of cheque the

person can easily get the whole information from the ledge. The deposit clerk must be careful while passing any cheque. In this regard another shortfall is in giving theinformation about the balance on telephone.

2.4 Excessive paper work It is notified that due to the lengthy procedure of paper work the bank employeeare over burdened. They are unable to give proper attention to the clients and facedifficulties in getting their job done. One reason for lengthy procedure andexcessive paper work in the bank is the lack of computerized technology.


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2.5 More accounts fewer deposits.Efficient banking is one which does not emphasize on number of accounts but ongreater amount of deposits. NBP is more interested in increasing its number of account irrespective to its deposit. The main reason behind it is that bank does not

provide personalize service to all the account holders and does not improve itsquality and services

2.6 Delegation of authorityManager has very limited authority; he has to take the approval from hismanagement authority i-e. In case of advance he has to take the approval of generaland regional manager. The other problem is created, when the manager is not

present in his office, the customer have to wait for hours. This discourages bothcustomer and officers because they have to suffer a lot

3 ADMINISTRATIVE ANALYSIS

3.1 Job analysis is not effectiveOnly on the basis of job analysis it can be decided how a right person can be hired,trained, compensated or promoted. It is very important for an organization thatnature of the job is described and job specifications are mentioned. Most of theemployees are simple graduate and do not have proper background about their job.This creates problems both for organization and for the employees. In NBP salariesare given according to the seniority and grades. People with simple or complexresponsibility are getting the same salary and facilities. This creates dissatisfactionamong employees.

3.2 Carelessness in opening of accountWhen customer comes to open an account, the staff does not bother to check his/her place phone number and permanent address. It is important because incase of overdraft by mistake or anything which places his account in debit it will

be difficult to trace him. On the other hand he may be involved in any fraudulentactivities against the bank. In this case the bank will be in awkward position.

3.3 Lack of specialized training NBP does not provide adequate facility of specialized training to their staff.Training is generalized rather than specialized. As the worker finishes his training,he is inducted into a specific field without having great deal of knowledge aboutthe field.


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In the Bahawalnagar branch the newly recruited employee training was notimparted, they all learned things on the job.

3.4 Low Profit RatesMost of the customers shifted their account to the National Saving Center becauseof the low rates of saving deposit discourages the customers. Bank should increasetheir profit rates to attract customers.

3.5 Poor job rotation.There is absence of job rotation in main NBP Bahawalnagar branch. A person

placed in one department remains their forever. It reduces career opportunities aswell boredom and in the end results in career platueing. Job rotation is veryimportant for employee especially for those who are newly recruited. The newlyrecruit should be rated in all department of the banking in order to get familiar with

working of different departments so that when they get a responsible position theyhave know how of the whole system.

3.6 Delays in Loan AdvancementIt has been observed that there are delays in sanctioning of cases form the headoffice, which results in customer dissatisfaction.

3.7 Lack of appreciationAnother very important thing which is ignored in the bank is appreciation if theemployee on their good performance. If hard work and performance of employeesis not recognized and appreciated they become dishearten which results in declinein performance.

4. PERSONAL MANAGEMENT ANALYSIS

4.1 Need for better training programNeed of training is greatly emphasized all around the world. Training of

the personnel is part of human resource management. It has been noticed that thetraining program of NBP is not adequate.

Once the candidate is selected and placed on the respective job. It becomesessential to train him adequately for the task. They should learn new methods for motivating customers. The training programmed of the bank should includescientific techniques to improve the decision making and interpersonal as willindividual needs of the employee both specialized to fresh as well as on job tomaintain the high standards of service.


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4.2 Developing Managerial LeadershipLeadership is a practical term of visible, clear on objective and communicating

better control on financial and administrative matters. Manager is not onlyresponsible for their own units in business, but also in people terms i.e. training,recruiting, grievance handling and taking immediate initiative in crisis situation totake major decision affection the future of the bank and banking community.


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4.3 Recruitment policyHuman resources are the lifeblood of the organization. If the personnel arerecruited carefully they can become asset to the organization in the case of carelessness a liability on the organization. Bank is not following its recruitment

policy properly due to favoritism, nepotism and political pressure. Both the topauthority and staff union tries their best recruit their favorites, indulgence of

political pressure add salt to the wounds. The persons selected through thesechannels are infantile and do not work for the betterment for the bank.

4.4 PromotionsPromotion in NBP is purely on the basis of seniority, so the new young personhaving high qualification remains behind for quite a lot of time. Top managementand staff union put pressure for the promotion of their favorites, which gives a

sense of deprivation to the deserving employee and their efficiency is affected.Asthe concept of promotion is attached with better in terms of greater responsibility,more prestige, greater skills and increased rate of salary. Thus a better andimpartial policy of promotion needs to be followed.

4.5 TransferTransfer means when a person is shifted from one place to another place. It is doneeither that person is needed more on the other branch or for improving his skillvariety. It is the policy of the Bank to transfer each employee 3 to 4 years.

4.6 Marketing at desk Bank employee come in daily contact with many people who happen to deal withthe casual remittance, travelers cheques, safe custody, pensioners, depositinglicense fee and variety of other functions and variety of other people with whomthe Bank has no account or regular business relationship. The Bank employees aredoing very little on their own to explore the possibilities of selling banking servicesto them as a marketing contributor. The entire Bank community should make aconscious effort in addition to their normal work to explore the possibilities of selling banking services to them. The market opportunities are hidden in everydealing a banker handles; the question is that if he has the art and urge to seizesuch opportunities.

4.7 Lack of business communicationThere is no proper way to give information to their customer. To avoid this minor dissatisfaction and tension in the mind of customer, and deficiency of the service, it


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is recommended that the bank should provide brochures etc containing informationin details.Some general information should be placed in information notice board on theentrance where customer can see it easily or it should be self-attractive.

17. MANAGEMENT INFORMATION SYSTEM (MIS)I worked in MIS/IT department and observed the system during

internship all activities in IT department were noted and made some practical work there.MIS Analyst Main Responsibilities: - Assist in the development and planning of the management information systems which will provide timely financial

information with respect to product profitability - Conduct financial analysis for proposed new products, business and other projects - Work closely with businessunits to define the data.

Responsibilities Prepare management accounting entries, maintain funds transfer pricing system rules and validate system output Prepare and distribute monthlymanagement reports Respond to user inquiries on management accounting resultsOperate and maintain management accounting database.

Management Information System (MIS)The National Bank Corporate System provides detailed information (MIS) whichcan help in controlling expenses. Monthly management reporting is an integralcomponent of the corporate Card offer from National Bank. It gives themanagement and its employees a complete expense tracking mechanism. It also

provides a reasonable credit period.Thus reducing your working capital requirement this will reduce the time and costassociated with expense control. The report package provides both Summaries anditemizations of charges and payments. The reports help you;

Streamline expense control Analyze spending patterns Forecast future spending The Individual Card Member Billing Statement


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Reduced Administrative Burden

Single Payment instrument : One Card for all your T & E requirements. The Bank Corporate Card significantly reduces paperwork involved in processing and payingmultiple vendor bills across multiple travelers. It also eliminates the need to set upcredit lines with a range of vendors used by your corporation.Flexibility: You can opt for a billing and payment methodology aligned to your internal accounting and reporting procedures.

Multiple Billing & Payment Plan: Bank has the flexibility of sending bills toindividual Card members or to a single recipient in your Company. You can alsochoose to pay Bank centrally or let individual Card members settle their own bills.

Access to single vendor for all your travel related needs: As a Bank CorporateCard customer, you can access International travel partner, allowing you theconvenience and efficiency of dealing with a single quality supplier for all your travel related requirements.

Option of Individual and Corporate liability :You have the option of opting for the Corporate Card program with individual or corporate liability.

Benefits to the employeesConvenience:Ease of charging and accounting business expenses :Bank provides you with a billing statement that lists all charges on the Card datewise with complete transaction details.So you know how much you spend andwhere. The descriptive billing statements help reconciliation of expensesAttractive spending limit: Unlike most other Cards the Bank Corporate Card

provides the flexibility to the corporate to set spending limit for the companynominees. Frequent travelers find this facility extremely useful when handlinglarge expenses and during unexpected situations such as extended businesstrips.Wide acceptance at quality establishments where business travelers normallyincur business expenses. Bank Corporate Card is affiliated to Visa and iswelcomed at all Visa Merchant Establishments.

Global Customer Assistance Services: Visa provides the following Card relatedassistance services to Bank Corporate Card Members when traveling overseas.


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Lost/stolen Card reporting Emergency Card replacement Emergency cash disbursement Security / Insurance Cover Photo and Signature option for Individual Card Members Limited loss Card liability. Post reporting the loss of Card, liability is Nil. World Class Service 24 hour customer services delivered to international standards from all over

the country.

Membership Rewards :Bank Rewards Plus Program, Opportunity to participate in the most

powerful Rewards program in Pakistan.. And it is so simple to redeem these points.

The Card Member needs to accumulate a minimum of 150 reward points and at theend of the year can redeem these reward points against any items in the rewardscatalogue.

Other Benefits to Card MembersEmergency Assistance Services that enables Card Members to obtain emergencylegal/medical referrals while traveling overseas.

MIS Supports to other departmentsThe Management Information Services Department provides a variety of servicesrelating to computer and telecommunications services, application softwaredevelopment, design and production services, and software training to all internalTown clients and departments. These services encompass personal computers,networks, printers, servers, and more. The MIS Department is an innovator in thefield of information technology management, using a combination of managementsolutions that maximize effectiveness and minimize cost. The MIS Departmentalso consults with other departments to analyze and select proper IT solutions for specific applications, provides internet access, computer training and support, and

mobile computing solutions for Town departments.MIS coordinates all Town-wide core business functions and informationtechnology administration. This includes accounts payable, utility billing, payrolladministration, general ledger, budget, purchasing, human resource managementsystems, accounts receivable, permitting, code enforcement, police and firedispatch and EMS reporting, and office automation.


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System and Network SupportDevelopment and maintenance of the Town's core communication infrastructure

and wide area network. Maintain file and application servers and network securitymanagement, software distribution, and technical support for hardware andsoftware.

Development:It Provides design, development, implementation services and continued support of special data, and databases town wide.

Web DevelopmentThe MIS Department designs, develops, implements and maintains the website.Information technology changes rapidly and new systems and technology arecontinually being implemented and installed. The MIS Department strives to

translate this technology into higher productivity for departments, and higher quality output for reduced costs of operations that ultimately benefits the citizensof area.

18.Structure of the MIS Department


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19. Functions of the MIS Department

Having founded the information technology (IT) services industry morethan 10 years ago, MIS delivers high value management consulting, electronic

business solutions, business process management, and systems and technologyexpertise to help clients simplify complexity and achieve superior value in thedigital economy.

MIS ControllerHe infrastructures support group skills to provide front office internal advisory roleon MIS related issues and... reputation both within the bank and externally. Thereare 4 main areas that comprise the department...; Financial Reporting and Control,Product Control, Regulatory Risk, and Business and Corporate MIS. Moves...

business lines within a supportive setting and surrounded by skilled professionals.

Head of Computer & IT (MIS)Dept

Head of TechnicalArchive

Secretary / Typist

Head of Support &ComputerOperation

Head of System Design &Integration

Information Network &Internet Manager

Head of ComputerOperation

Head of Support

Head of Desin of

Tech. &Oper. Sys

Head of fin. Admin.& Comm.Manager

Internet/Intranet

Manager

WebMaster

HWSen.Eng

Sen.ExpertOS

Head Tech. Sys

Headfin.,Adm.Sys.

SeniorAnalyst &Programmer

SeniorAnalyst &Programmer

Tel. Proc.Sen. Eng.

Sen. Exp.database

HeadOS

HeadComm.Sys


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Senior AccountantSenior Accountant is responsible for the enhancement of the control... business

performance, through monthly commentaries and business reviews. This key rolewill see you... month-end reporting and MIS to the Front Office, Bottom of Form

Business Analyst - Finance Change, Investment BankingHe integrates programs within a Global Investment Bank based in the City. Thesuitable candidate will support... existing finance reporting systems across the

bank. Both projects will look at reengineering the finance... platforms for Generalledger and MIS Reporting, with specific responsibility for: Business requirement...Liaising with business and technical teams across the bank Suitable candidates will

be a Qualified

C# Lead Developer Collateral IT

In the systems supporting the F2B business and will have an increasing role in new business... business. The role exists for a lead C# Winforms GUI developer onCollateral Portal, our next generation... suite of trader tools. The role will involve:Designing and establishing a simple GUI implementation

Policy & Portfolio Reporting AnalystInternal Audit Role Leading Global Investment Bank Credit Product... A new

position has arisen with this leading global investment bank for a Policy enPortfolio... Reporting Analyst to join the reporting team Main Duties of the roleinclude: Technical data expert provide portfolio data analysis, quality assurance,MIS production for portfolio reports to understand.Major functions: (of Policy and portfolio Reporting Analyst)He explains the role of information technology as a business enabler and identifiesand explains management information systems applications including customer relationship management systems, enterprise systems, e-commerce applications,transaction processing systems, business analytics, and emerging technologies. Heevaluates the organizational fit and suitability of business applications andinterprets the interaction