NBP.pdf

CHAPTER#01

1.INTRODUCTION

The National Bank of Pakistan is a Commercial Bank and

transactsall typesofBankingBusiness.TheNationalBankofPakistan

was established on November 29, 1949 asa semi public commercial

bank.

The Bank has the distinction of acting agent of the State

Bank of Pakistan and operates treasuries where the State Bank of

Pakistandoesnothaveanyoffice.

The Head Office of the Bank is at Karachi. Ever since its

establishment in 1949 it has been leading Commercial Bank of the

nation, sole agent of the Government of Pakistans batter trade with

countriesandofStateBankofPakistanfortheGovernmentTreasury.

It has offices at all the major financial centers of the

includingatprideplaces likes 100wallstreets, NewYork andUnited

nationsPlaza. Its Internationalnetwork includesBranchesatBahrain,

Cairo,Paris,Frankfurt,HongKong,London,WashingtonD.Cofshore

banking unit at export processing zone. Karachi and representative

officesfunctioningatBeijingandSeoul.

In Pakistan, the bank provides complete bank facilities to

the people at over 1436 Branches operating even at the far lug

Northern Areas. National Bank of Pakistan is the first bank in the

country to introduce and implement supervised Ruler Credit

Programmedhelpsmallfarmertoobtainloansathisdoorstepsoneasy

termsandconditions.Ithasalsoplayedapioneeringroleinintroduction

ofprofitandlosssharingSystem(PLS)asamajortowardsIslamization

ofeconomy.

In addition to the normal business operations the bank

provides special loan facilities for higher education for studies abroad

and QarzeHasna to deserving poor students of Medical and

Engineering Colleges in Pakistan. The well equipped research

departmenttoworkonthecdevelopingtrednsoffinanceandbanking,

besidesaverywellmanagedlibraryattheHeadOffice.

Thebankscarryonitsbusinessthroughawidenetworkof

branches locally and internationally. These branches execute their

function under the supervision of local Regional Offices and regional

officesaresupervisedbytheHeadOfficelocatedamagnificentbuilding

intheheartofKarachiscenter.

In the forty five years that have followed the bank has

maderemarkableprogresstestifyingtoseveralthings.

It is now extending the operations of the Bank to all

branches to Banking, to commerce, to industry to trustee services as

wellastoagricultureandtotheneedofthesmallorbigbusinessman.

It has rapidly advanced from an institutionwith restricted

power to thebiggestcommercialbanks in thecountry italso shows it

soundnessofthepoliciesthatthebankhaspursuedintheexecutionits

tasks.

The National Bank has lead the trial in this respect, other

banks have followed it. The National Bank has great contribution

towards building wide Banking structure in Pakistan and serving all

aspectsoftheNationallifeandallclassesofsociety.

Source:http://www.nbp.com.pak

2. HISTORYANDMANAGEMENTOFN.B.P

ThestoryofNationalBankofPakistanispartofPakistans

struggleforeconomicindependence.

When, National Bank of Pakistan came into existence in

November 1949, the country was facing a severe economic crisis

originally,theintentionwastosetupthisBanksometimeinearly1950,

butthecriticalsituationthatdevelopedinthe jute tradeasaresultof

Indias refusal to accept the exchange rate of the Pakistan Rupee,

followingthedevaluationof itsownand thesterlingfunctioningDacca

andopenditsofficesatfiveimportantjutecentersnamelyNarayanganj,

Chandpur,RangpurandKhulna,intheEastPakistan.

TheBankadvamcedlargesumsofmoneyto theagentsof

the newly established Jute Board and gavemuch needed help to the

market.Thecrisiswasaverted,thejutegrowersreceivedafairpricefor

theproduceandthecountryearnedtheforeignexchangeitwouldhave

otherwiselost.

Again, in 1950 following the outbreak of war in Korea,

Cotton prices shot up to unprecedented levels and the credit facilities

availableforfinancingthemovementofthecottoncropfellfarshortof

requirement.

TheNationalBankofPakistancameforwardtoestablishits

offices in the Cotton growing areas and extended credit facilities

liberallyinordertorestorestabilitytothemarket.In1951,thecountry

wasonceagainfacedwithacrisisinthecottontradewhenpriceswas

crashedandtouchedthelowest levelsinceindependencefollowingthe

cessation of hostilities in Korea. The bank in collaboration with the

cotton board provided the necessary Credit facilities to the trade and

thecrisiswastidedover.


AnotherimportanteventintheearlyhistoryoftheNational

BankofPakistanwastakingovertheagencyworkoftheStateBankof

Pakistan in 1952, for transacting Government business andmanaging

currencychestsatplaceswhere.TheBankofPakistandidnothavean

office of its own. In 1962, the agency arrangementwas extended for

furtherperiod.

Prior to nationalization, a Central Board of Director

governedthebankwhichconsistsofamanagingDirectorappointedby

theCentralGovernment,ninedirectorselectedbytheshareholdersand

thethreedirectorsappointedbytheCentralGovernment.ThePresident

oftheCentralBoardwasappointedbythecentralGovernmentamongst

theDirector.

Consequent upon nationalization, the Central Board

disclosed and in its pace an Executive Board consisting of president ,

who istheChiefExecutiveand fourothermemberwereappointed for

Generaldirectionandsuperintendenceoftheaffairsandbusinessofthe

Bank.


The general direction and superintendence of the affairs

and business of the bank vests in this executive board. In 1980, the

Federal Government constituted a Board of Directors comprising the

president, five member of the Executive Board of the Bank one

nominee each of the Pakistan banking council and the ministry of

Finance. All nationalized commercial banks are controlled via the

PakistanBankingCouncil,beingtoStateBankofPakistanregulationsas

well.TheFederalMinistryresponsibleforBankoperationsistheMinistry

ofFinance.

3. OBJECTIVESOFNATIONALBANKOFPAKISTAN

ThemainobjectiveofNationalBankofPakistanhasbeento

include and spread banking habits among the people mobilize their

savingsandthusmakeandeverincreasingcontributiontotheeconomic

developmentof thecountry. Ithasallalongpursuedapolicyof rapid

developmentextending,itsfacilitiestoalmosteverycenterofeconomic

potentialinthecountry.Itsserviceshavebeenincreasingcontinuously

andarebeingbroughtwithinaneasyreachoftheevergrowingnumber

ofpeople.

Source:http://www.nbp.com.pak/

To day it provides the largest network of offices in the

country, 1436. Being in Pakistan and 22 aboard. It offers remittance

facilities to almost every important center in the country to provide

facilities to the traveling public the bank has introduced its own

travelers cheque which are en cashable at a branch of the bank in

Pakistan.

1. FUNCTIONSOFNATIONALBANKOFPAKISTAN

TheNationalBankofPakistanacommercialbankgenerally

makesadvancesforaperiodnotexceedingoneyear,exceptincaseof

small and medium industries for which advance may be made for a

maximum period of five years. The bankmakes not only against the

securityofstocksandgoodshypothecatedorpledgedtothebank,but

alsoagainstdocumentsofgoodsandproperly,sharesarevariousjoint

stock companies, Government securities, Insurance policies deposits

receipts,etc.Themargin,andrateofinterestaredeterminedbyseveral

factorsincludingthetypeofsecuritythesizeofloanandtheintegrityof

theparty.


The Bank is authorized to carry on kinds of banking

business and is empowered to make loans. It has also undertaken

specialfinancingoperationsconnectedwithGovernmentpricessupport

scheme.Thebankalsogivesadvancesloans,especiallyforagricultural

products,suchascottonetc,Italsosafeguardsthevaluablearticlesof

people.ItalsoarrangestrainingprogramsforBankofficials.

It caters to theneedsof the trade, industry&agriculture,

both in private & public sectors. It participates in procurement of

seasonalcropse.g.wheat,rice,cotton,sugarcane,etc.Italsoprovides

credit facilities tosmall industrialunitsagriculturesectorsaspercredit

mandatorytargetsfixedbytheStatebankofPakistan.

PROPOSEOFSTUDY

Themain & primary purpose of this study is to fulfill the

requisite requirements towards the completion ofMBA (Hons) degree.

InthisconnectioneveryStudentisRequireundergoinganinternshipof

sixweeksinanybusinessorganizationinstitution.

The business internship report is carried on to be

familiarizing with actual working conditions in any organization by

physical&practicalparticipationinthebusinessaffairs.

For this, Iwent to theRegional&HeadOffice ofNational

BankofPakistan&writtenreport.

Secondly it is necessary for the Bachelor of Business

Administration that after acquiring through knowledge, we should

acquaint ourselves with the entire practical knowledge & experience,

whichwecanonlygainthroughvisitinganyOrganization&Conducting

adetailedstudy.

Thirdly,thepurposeofthisstudywastogaingoodamount

ofconfidence&tobecomeawareofthemechanismofNationalBank

ofPakistanbyworkingdealingwithofficialsoftheBank.

Finally, the purpose was to know how National Bank of

Pakistan plays its role significantly in the development of financial &

other industrial. There was an ample chance for us in this study for

learningaboutfinancingandBankingdevelopmentinPakistan.

2. METHODSOFSTUDY.

For the preparation of this Internship report, I used two

methods to collect data, first primary data collection and second

secondarydatacollection.

InsecondarydatacollectionI intervieweddifferentofficers

and officials. For this purpose, I paidmany visits toNational Bank of

PakistansRegionalOfficeHyderabad,NationalBankofPakistanFatima

JinnahRoadBranchHyderabad.

Inconductinterviewsfromheadofthedifferentdepartment

ofNBPandalltheinformationiscollectedsystematically.

For this purpose, I prepared the questioner and asked all

thedetailedfunctionandprocureoftheirdepartments.

Iinteriewedfollowingincharges.

1. Mr.KauroKhanMemon (AreaManger)

2. Mr.GhulamMurtazaBaloch (InchargeAdvances)

2. Mr.NaeemAhmedShaikh (InchargeF.E.Dept:)

3. Mr.SaulatHussain (InchargeAdmin)

5. Mr.SohailAhmed (InchargeInspection)

6. AijazHussainRathore (Export)

7. JamshedAli (Export).

All above officers have fully cooperated with me and

providedallthenecessaryinformation,whichwasrequiredtome.

Ihavecollectedall the informationbyusingbothmethods

Primary & Secondary data. All thenecessaryand relevant information

was systematically collected arranged analyzed for writing this

internshipreport.

I am highly obliged to and thankful to all the above

Executive and personnel of National Bank of Pakistan, who have

providedalltheassistanceandenablingmefor thepreparationof this

report.

3. LIMITAIONS

During the course of study, I faced many difficulties in

collectingtherecentandaccurateinformation.

There are number of constraints encountered by me.

Someofthemareasunder:

1. TheBankfidnotallowmetoworkpracticallyinthebank,Iwas

onlyboundtoaskquestionstotheirinchargeofficer.

2. Theygavemeverylimitedperiodoftimeperdayvisit,whichalso

causedsomedifficultiesinobtainingadequateinformation.

3. Agoodamountofinformationrelatedtothebooksofaccount,

whichmaybebeneficialformewerenotprovided.

4. Thebankofficialsbecauseofsecrecyofthebankmatersdidnot

answerthenumberofquestion.

5. Thelowergradestaffwasnotproperlytrainedthereforethey

havebeenansweredaccurately.

6. Majorityofstaffmemberhavenotgivefullattentionandthey

werenotinteresttoprovidemethefunctionalandotheroperation

details,exceptsomeofficerswhoprovidemefullassistance.

Insteadofallthesedifficulties,Ihavecompletedthiswork

duetofullcooperationandassistanceofearliermentionedofficers.

CHAPTER#02

INTERNALFEATURESOFNBP

MANAGEMENTANDORGANIZATIONALSTRUCTURE

1 MANAGEMENTANDHEADOFFICEMANAGEMENT

AmongsevenmemberofgroupChiefExecutiveiscalledthe

President.TheBankalsohasdirectorsforsuperintendenceanddirection

of its business. Themembers of board consists of President. Who is

Chief Executive and six other directors asmembers appointed by the

government.

ThememberofBoardresponsibleforgranting loansinthe

field likesagriculture industry,housingandimportexporttradeand to

makethepolicyoftheBank.

Source:TheinformationaboutthischaptergivenbySoulatHussain(Admin.Manager)

A OrganizationandHeadOfficeManagement

In the National Bank of Pakistans head office, there are

sixteen 16 separate division to deal with all the necessary problems

separately,onthetopofallthesedivisions.

Thedetailsaboutthesedivisionsareasunder

InternationalDivision.

Thisisagainsubdividedinto2divisions.

1. ForeignExchangeandoperationdivision.

2. AdministrationandCreditdivision.

An Executive Vice President also manager these divisions

separately. Finance and investment division (Economic Research &

CooperatePlanning)

A Senior Executive Vice President also manager these

divisionsandthissectioncontainstwodivisions.

3. FinanceandInvestmentDivision.

Thisdivisionisfurthersegmentedintodifferentwingsanda

seniorvicepresidentlooksaftereverywing.

(a) Investment&resourceswing

(b) Accounts,Planning&BudgetingWing

(c) Govt:DebitManagementwing.

(d) PublicityandPublicRelationWing

(e) EditorialBoardQuamiBankerWing

(f) ReconciliationWing

4. EconomicResearchandcorporatePlanningdivision.

This division does the work of economic research of the

country.ThisdivisionisalsomanagedbyanExecutiveVicePresident.

Administration,ComputerandHumanResourcesDevelopment

Division.

Fromthenameit isclearthat isconsistsofthreedivisions

namely.

5. AdministrationDivision

This division is also divided into EstablishmentWing, Staff

Relation, Central unit fraudand forgery and regulationwing, Personal

WingandPersonnelcareerplanningwing.

6. ComputerDivision.

ThedivisionconsistsofcomputerwingandEDPaudit,and

procedureandadministrationwing.

7. HumanResourcesDevelopmentDivision.

This division supervises all the staff colleges, at Karachi,

Islamabad,LahoreandPeshawar.

All the above division supervised and under controlled by

andcoordinatesunderaSeniorVicePresident.

8. AuditandInspectionDivision.

Therearetwowingsworkingunderthisdivision,whichis.

(a) ImplementationWing

(b) RegionalAuditChief.

Thisdivisiondealwithauditinspectionofsubordinateoffices

2 LAW,RECOVERY,LITIGATIONDIVISION.

Therearetwodivisions,whichtakepartinthissection.

9. LawDivision

10. Recovery&Litigation.

11. CustomerServiceDivision.

12. Engineering&MaintenanceDivision

13. BusinessPromotionandMarketingDivision.

CreditProcessing&MonitoringCorporateCreditDivision.

Twodivisionsarejointtogetherinthissectiontheyare.

14. Creditprocessing&MonitoringDivision.

Thisdivisionisdistributedaccordingtodifferentareas.

(a) N.WF.P&A.KSindhBalochistanAreaWing.

(b) KarachiAreaWing

(c) SpecialCreditCellandPunjabAreaWing.

15. CorporateCreditDivision/CreditPolicyDivision.

This division segregated into two sections, to deal them

separately.

(a) Coordinationsection.

(b) AgricultureFinancingSection.

b). FieldManagementandOrganization.

There are four executive to supervise the bankmaters of

everyprovince,astheyarecalledprovincialschiefs.TheseProvincials

Chiefsareresponsible for theentirebankingintheirprovincessuchas

income.expensesadvancesanddeposits.

TheRegionalChiefNBPBalochistan

RegionalChiefNBPPunjabn

RegionalChiefNBPSindh

RegionalChiefNBPN.W.F.P&AzadKashmir.

Theseprovincesareagaindividedintoregions,theregions

are controlled and management by regional heads, which are

responsibleforthesupervisionintheircirclesanddealwiththeproblem

zonesintheirjurisdictionofBranchesandStaff.

Thecountryhasbeendividedm into19 (nineteen regions)

byNBPtoficilitateitsfunctions.

SindhProvince

1. KarachiRegionA

2. KarachiRegionB

3. MainBranchKarachiRegion

4. HyderabadRegion

5. SukkurRegion.

NWFPProvince.

6. PeshawarRegion

7. AbbotabadRegion

AzadKashmir

8. MuzaffarabadA.K.Region

BalochistanProvince

9. QuettaRegion.

PunjabProvince

10. LahoreRegionA

11. LahoreRegionB

12. MainBranchLahoreRegionC

13. BahawalpurRegion

14. GujranwalaRegion

15. SialkotRegion

16. FaislabadRegion

17. MultanRegion

18. RawalpindiRegion

19. IslamabadRegion.

These regions are also subdivided into zones . The

inchargeofzoneiscalledZonalChief.

3 ORGANIZATIONALSTRUCTURE.

Source:SoulatHussain(AdministrationManager)

PRESIDENT

DIRECTORS/ SEVPS

Procincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade-I,II,III

Clerical and non-clerical staff

4 DEPARTMENTFUNCTIONINGUNDERN.B.P

NBPhassevenmaindepartments for functioningofwhich

wholefunctionofbankisdependedorwecaneasythatallservicesare

renderedthroughthesesevendepartments.

Thesedepartmentareesplainedwiththeirheadingsareas

under

a). ADVANCEDEPARTMENT

Advancedepartmentreceivestheapplicationfromintending

borrowers and submits the same application to the higher authority

afterprocessingforapprovaltheadvancescanbeoffollowingnature.

Source:Mr.GhulamMurtazaBaloch,InchargeAdmn:Deptt:(OGI)

Source:ShafqatAliMahesar(OGIII)

Source:Mr.KhadimAlilundBaloch(OGIII)

Source:SaeedAhmedKhan

a. Agricultureadvancetofarmers

b. Shorttermsadvancetobusinessman

c. Longtermadvanceforsettingindustry

d. Mediumtermadvanceforworkingcapital

e. SeasonaladvancetocottongingersRiceandsugar mills.

b). REMITTANCEDEPARTMENT

Bank promotes the facility of remitting funds within the

country and outside country within certain limits, Usually money

remittedthroughDemandDraft,TelegraphicandSWIFTtransfer.

Always two parties are involved in this function one is

receiverandanotherissender.

c). ACCOUNTSDEPARTMENT

AccountsDepartmentmaintains the fixed deposits receipts

of the depositor. Accountdepartmentalsokeep incomeandexpenses

accounts.Accountdepartmentpreparestheweeklyanddailystatement

oftheaffairsofthebrancharefirstlikeabalancesheet.

Source:AltafAhmed(OGIII)

d). FOREIGNEXCHANGEDEPARTMENT.

1). Imports

Wesellourforeignexchangetotheothercountrywhichis

calledsuchaswepurchasetheforeigngoodsfromtheothers.Importis

donethroughletterofcredit(L/C)bytheimporter.LetterofCreditisan

undertakinggivenbytheimporterbanktotheexportersbank.

2). Export

Export is to sell our goods to the other country and earn

foreign exchange. The bank provide facilities of exporting the

commoditiestothemanufacturesofthegoodsofthecountry.

3). ForeignRemittance.

The bank provides the foreign remittance facilities to the

student studying aboard. Bank also provides foreign exchange in the

shapeoftravelerschequestotheintendingvisitors.

Source:SyedQamarHashmi(Assistant)

Source:AijazAliRathore,(OGIII)

Source:MissRazia(OGIII)

e). CLEARINGHOUSEDEPARTMENT

The function of Clearing House department is to pass the

chequepresentedbyonebranchof thebanktootherbranchesofthe

banks.Clearinghouse isusuallysetuponthebigcitiesandiscontrol

bytheStateBankofPakistan.

f). CASHDEPARTMENT

Cash department is backbone of the branch., Cash

departmentreceives thecashfromdepositorsandmakesthepayment

tothechequeholder.

g). MARKETING/BUSINESSDEVELOPMENTDEPARTMENT

MarketingDepartment issetup in thebigbranches in the

commercial banks. Generally the main functions of the marketing

departmentareasunder.

a). Tointroduceavaluedclient/depositorstothebankbranch.

b). Tobringavaluablebusinessforthebranch.

c). Toprovidethe financial facilitiesto thesoundposition fromthe

bankspointofview.

d) Marketing, department plays very vital role in increasing the

savingsofthebank.

e). Thedevelopmentofthebranchdependsuponeffectivemarketing

system.

f). Marketing department introduce institution among the persons.

Generally the manager of the branch deals himself in the marketing

function.

Source:RafiqueArbaba(OGII)

Source:SyedShahNawaz(Assistant)

Source:MoinuddinMuallian(OGIII)

Source:MohammadAtiqKhan(OGI)

Source:VariousBankinformationcirculars.No&DateN/A

CHAPTER#03

ACTIVITIESOFNATIONALBANKOFPAKISTAN

1. COMPUTERIZATION

With a view to up grading and streamlining the working

system of NBP and procedure plans were under taking by the

management to provide microcomputer and electronic ledger. Cards

machines to the larger branches of a bank. This programwill also be

expended to theothersmallerbranches in comingyears.Utilizationof

the banksmainframe computer at Head Office, which happens to be

the most sophisticated amongst all the banks in Pakistan is also

progressingtofurtherupgradethecapacityofNBPincomingyear.

2. DECENTRALIZATION

Under the direction of the government, operation of all

nationalized commercial bankswere significantly centralized by setting

up provincial head quarter at Karachi, Lahore, Peshawer and Quetta,

eachheadedbyamemberofexecutiveboard,enjoyingvastpower.

Thebankspolicyofdecentralizationoffinancialsanctioning

authority by delegation of powers to Regional and circle officers and

creditcommittee,resulted in improvingefficiencyandpromptattention

to the need of the customers on a country vide basic. Decisions had

beenquickerandservicetoclientmorerapidlyandeffectivelyavailable

asaresulttothispolicy.

Thisscheme,whichhasbeenwellreceivedbythebusiness

communityandthevariouschamberswillbebeneficialinquickdisposal

of credit facilities all provincial level and will also help in solving the

problem and grievances of the customersmore effectively. Service to

clientswillalsobeimproved.

Source:VariousNBPinformationcircularsNo:anddatenotavailable

3. FOREIGNTRADEANDOPERATION

NationalBankofPakistanplayedanavtiverole inhandling

thecountriesexportandimports.

The growth of international business operations depends

causally and expansion of foreign contacts. The bank already has 22

overseasbranchesinimportantbusinesslocatedareasoftheworld.The

NBP also looking forward to open some new branches in foreign

countries.

Errors are also under way to strengthen out relationship

withbanksincentralAsiaandtoestablishjointventureswiththebank

ofthatareapoliticalandfinancialstability isrestore.Nationalbankwill

trytoestablishbranchesthere.

PROGRESSINISLAMIZATIONOFBANKING

Aftertheintroductionofprofitandlosssharingschemeona

limited scale in January 1981. The Federal Government in 1984

announcedamajorpolicydecisionthatbytheendofJune301985all

the domestic operated banks and financial institutions will be on NIB

system.Thisobjectivehasbeenachievedfrom1stJuly1985allbanking

operationshave beenswitchedover toNIB system. In the finalstage

fromJuly1,1984savingdepositshavebeenconvertonprofitandloss

sharingbasis from thisdateonwords thebank isnotaccepting fixed

perioddepositsoninterestbasis.

Itshouldnotbeconsideredtheendofthemissionasmush

more remains to be achieved . Until June 1985, none interest basis

investment opportunities were more, while NIB liabilities were

comparatively less.But nowafter complete switchover the reverse in

the reverse in the position. But further continuous research and

dedicatedeffortsarenecessaryartnational level so thatPakistanmay

present,beforetheworldasystemwhichisreallynew,dynamicandin

accordance.

Source:SoulatHussain(Admin.Manager)

CHAPTER#04

TRAININGANDFACILITIESTOSTAFF

1. TRAININGTOSTAFF

In 1949, the first year of operations the NBP has one

hundred employees one its payroll butwith in two years this number

had grown to 1505 by1960 the figure has risen to 5023 and now in

1996itistheorderor20694.

During the first ten years the NBP trained its own staff

through a series of training programme both for junior officers and

clerical staff. By 1958 how ever it was obvious that one thins more

comprehensive was needed and the bank established a staff college

Karachi.ThreemotecollegesatIslamabad,LahoreandPeshawar,setup

later. These colleges provide course of instructions, supervisor

personnelandclerkstomeettheBanksevergrowingtrainedpersonnel.

This needs springs not only from the steady grown for the banks

businessbutalso to replacewastagedue to retirement resignation, ill

healthordeath.

The staff college receives junior bank officers for further

traininginbankingthecourselastingfromsixtonineweekswithabout

twentyfivestudentsineachcourse.

The staff college course are designed not only to impart

technicalinstruction,butalsodevelopqualitiesofjudgementsdecisions,

leadershipandmanagement,sincethesestudentarelikelytobethose

menwhomayexpecttotheseniorsmostexecutivepositionsthebank

hastooffer.

The bank also deputes officers to attend banking seminar

both in Pakistan and abroad and it attaches great importance to the

exchangeofideasinformationandknowledgewhichcanmostusefully

accurefromthesegatherings.

In its position the National Bank has considerable

responsibility in ensuring that the country is well represented at

meetingsofbankersatdomesticandinternationallevel.

2 SALARIESANDFACILITIESTOSTAFF

As an employer NBP is also deeply conscious of as

responsibilitiesandact itbesaidthatattheoutset,consideritsselfa

good employer. Its sealesof pay termsof services,staffbenefits and

amenities compare very well with instruction of similar stature in

Pakistan.

Theresultisthatemploymentwiththebankhascometobe

regarded as some thingofprize.The scaleof payandallowances for

officers and staff are revised from time to time as need grows. In

addition employmentwith bank personable and bonuses are regularly

paid.

The bank provides free medical treatment for all its

employers, their families and dependent parents. A seniormember of

themedicalprofessionactsasMedicalAdvisorandmedicalconsultant.

Source:Mr.NomanAhmed

Source:Mr.KhadimAliBaloch

The bank pays school fees for the children of all the

supervisory,electricalandsubordinatestaffandthisfacilityisextended

tocollegefeesalso.

To meet the problem of fining suitable residential

accommodation in the hig cities. NBP has had recourse to several

measures inKarachiandLahorefor instancethebankhasconstructed

residentialquarters.NBPhasgrantedloansoneasytermstomembers

ofstafftoenablethemtoconstructhousesoftheirown.

Tosolvetheproblemsofconveyancefor itsemployeesthe

bankmakesadvancestostaffforthepurchaseofcarsmotorcyclesand

cycles.

The bank has provided finance for the establishment of

sportsclubsandstaffrecreationcenters,toenablestaffsportclubsand

othersuitablerecreationalactivitiestoflourish.Cooperativestoresand

subsidizedcanteenshelpthelowerpaidcategoriestogetthebestvalue

formtheircarnings.

CHAPTER#05

FEATURESOFDIFFERENTTYPESOFACCOUNTSBE

OPERATEDBYNATIONALBANKOFPAKISTAN

Thebankacceptsthefollowingtypesofdeposits.

1. Currentdeposits

2. PLSSavingdeposits

3. Fixeddepositsaccount(TimeDeposit)

4. ForeignCurrencyAccount

1. CURRENTDEPOSIT

ForcurrentdepositsNBPopentheaccount inthenameof

individualproprietaryfirms,partnershipfirm,privatelimitedcompanies

clubs, association societiesandother institutions.The account can be

operatedbysingleortwomorepersonsjointlyastheinstructionsmay

begivenatthetimeofopeningtheaccount.

If the person who wants to open the account is not in

position tosignorsignature isnot firmorshakythebank requires is

photographsandhehastocomeinthebankatthetimeofwithdrawals

ofhisdeposits.

The initialamountofdepositswithwhichhecanopenthe

accountusualnotbelessthenRs.1000/

But his restriction is not imposed to the accounts of

charitable institutionsand theaccountopened in themonthof closing

i.e.June&December.

Source:perveizalikhawaja(OGIII)

2. PLSSAVINGACCOUNTS

The silent features or profit and loss sharing saving

accountstobeopenedinNBPasunder.

1. Theseaccounts can be openedby individuals in their own

singlearejointname.ThePLSsavingaccountscanalsobe

opened for provident fund or other benevolent funds of

companies, firms,organizationsofwelfareandeducational

institutions.

2. PLS saving account can be opened with an minimum

amountofRs.500/only

3. Money can be with drawn form PLS saving account only

throughcheque.

4. ToshareintheprofitaminimumbalanceofRs.500/must

bemaintained aaccount. Theminimumbalanced onsixth

andlastofmonthwillqualifyfortheprofits.

5. The profit will be calculated on the basis of monthly

minimum balance for the period of six months i.e. from

JanuarytoJuneandJulytoDecember

6. TheheadofficeofNBPdeterminestheprofitsorlossonPLS

savingdepositsandadviceitsbranchestherateandtimeof

distributionoftheseprofitsconcernedPLSsavingaccount.

7. With drawls from PLS saving accounts are allowed not

oftener then 8 time in a calancer month and for a total

amountnotexceedingRs.1500/forwithdrawalofa large

amount seven daysnot in writing is required to be given.

Thisnoticeshallnothoweveraffectthemonthlywithdraw

ordinarily allowed. In the even of contravention of rule.

depsositorsshallforfeithisrighttoshareprofitforhenotice

period shall be deducted from his total profit earning

products.

8. The shall be no restrictions on maintaining the maximum

balanceinPLSsavingaccount.

9. On the fist of Ramzan every year the Zakat 2.5%will be

recoveredfromthedepositsonthebalanceofthatday.But

ifdepositorsgivedeclarationofZakatorhe isnonmulsim

noZakatwillberecoveredfromhiminthesamedayZakat

is not recovered from account in which the balance are

belowuptoprescribedlimitasdeclaredbytheadministrator

ofZakatPakistanActsystemofacceptingdepositshasbeen

statedinNBPsince01011981.

Source:Mr.NisarAhmedQazi(OGIII)

Source:Mr.ImtiazAhmed(OGIII)

3 PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED

DEPOSITA/C

In thecaseof fixeddepositaccountdeposit ismade fora

fixed period and a money deposited can be with drawn before the

expireofperiod fixedorbeforegivinganadvancenotice to theBank.

Fixeddepositcariesahigherrateofinterestthantheothertypeofbank

accountandtherateofinterestriseswiththelengthoftheperiodand

theamountofdeposit.

Oneopeningafixeddepositaccountthebankgrantstothe

depositor a fix deposit (FDR) which is not transferable to any other

person. When the depositor with drawn the receipt must be handed

backtothebank.

Thesilent featuresof profit and loss sharing termdeposit

exceptedbyNBParegivenasunder.

1. The PLS term deposit are excepted from individual in their own

singleorjointnames,companiesfirmsandotherorganization.

2. ThePLStermdepositreceiptareissuedforanyamount.Thereis

minimumormaximum limit or deposits ina single termdeposit

account.

3. Thetermdepositcanbemadebytenderingcashonly.

4. PLS terms depositorsmaybeallowed some facilitiesagainst the

security of these receipt credits, after making Lien on the

relevantreceiptandsubjecttorecoveryofaservicecharge.

5. Undertermdepositschemethedepositorsnotceasetoearnthe

profit immediately, after the respective maturity date, but they

havebeenafforda liberal facility. In case thedepositorssaid to

withdrawtheirtermsdepositsonmaturitytheirfundswillremain

temporarily in used and on profit earned a responsible share

would occur to such over due PLS terms deposits at the rates

declaredonPLSsharingaccount.

6. Theheadofficeof thebank determinethe profit or losson PLS

terms deposit at by any one intervals i.e. the end of June and

Decembereachyearandpaymentofprofittoordeductionofloss

ifanyfromthePLStermsdeposit istobemadethedepositsfor

longer period will earn a littlemore profit then thoseof shorter

perioddeposits.

7. ThetotalprofituptoRs.950/isexemptedfromincometax

8. Inthecaseofencashmentbeforematuritybutaftercompletion

ofmonths profitwill be paid for the entire period forwhich the

deposit remained with bank at the rates payable for the

respectiveperiodtothePLSsavingaccountafterdeductionofthe

Zakatifany.

9. In PLS term deposit expired and the depositors request with in

onemonthaftertheexpiringdate,forinvestment.ThePLSterms

deposit will be reinvested for the desire period from the date

immediatelyfollowingexpiringdate.

10. ZakatorthefacevaluePLStermdepositwillberecoverdasmay

time as the valuation dates (i.e Ist Ramzan) falls between the

dateofissueandthedateofexpiryofthedeposit.

Source:AbdulHameedBhutto(OGIII)

4 FOREIGNCURRENCYACCOUNT.

NBP has also introduced foreign currency accounts for

Pakistan and foreign Nation in Pakistan and abroad. This scheme

assuresitscustomersonbetterprofitandsuperiorservice.

1. It offers Pakistani or foreign National to operate a foreign

currencyA/Cwithanyoneoftheirauthorizedbranchesspreadall

overthecountry.

2. Deposits of this accounts will be acceptable in all convertible

currencybutaccountwillbemaintainedonthecustomerschoice

inUSDDollar,poundsGermanMarkorJapaneseYen.

3. Deposits may be made in the forms of remittances in foreign

currencies.

Travelerschequeonthebankcounterwillbeaccepted.

4. Thecustomercanmakewithdrawlsandtransferstoanywherein

theworld.

5. All thedepositsandprofitsinthecustomersforeignaccountare

exceptfromZakatincomeorwealthtax.

6. The customers sources are protected from any scruitny of

concernedauthorities.

The NBP has over 1400 branches at home and abroad of

thesemorethan100branchesareauthorizedandfullyequippedtodeal

withallkindsofforeigncurrencytransactions.

NBP has worldwide network of branches and it has

associated in Arabia bank, All Jazria (26 branches) and national

exchangecompanyinUAEtofacilitatethecustomersinPakistan,Saudi

ArabiaandUAE.

Source:AttaHussainRajpar(OGIII)

3 FUTUREOUTLOOKOFNATIONALBANK.

NBPisfullyawareof thedevelopmentstakingplaceinthe

worldaswellasthechangesoccurintheeconomicandsocialcondition

withinthecountry.Thebankisdeterminedtomeetnewchallengesby

redefining its goals and strategy as well as by the adjustment of its

operationalpolicies.

The Bank planning to institute major improvements,

especiallyincustomerservicelaunchinnovativeproductstoensurethat

the bank continues to play a dynamic role in the development of the

country.

CONCLUSIONS

At the completion of the business internship the

interencedrawsthefollowing:

1. Itappearsalengthyprocessofsanctioningadvance.

2. Itlooksthestaffmemberarenotproperlytrained

3. Itseemsthepromotionarenotgivenintheduetime.

4. It appears that large amounts paid on administration

cost.

5. Itshowsthatthereislackofrecoverysystem

6. Itseemsthatthereisnonetworking.

7. It seems that there shallbeagreat the rushdays for

thecustomersaswellas for the staffmembers If the

Noofcounterarelimitedorveryfew

8. Itmightnotbepossibleforeveryborrowertorepaythe

moneyinduetime.

SUGESTIONS

On the basis of conclusion interence draws the following

suggestions

1 It issuggestionthattheprocessshouldbeshortinorder insave

timemoneyenergyandstationaryetc.

2 It is proposed that proper training be perovided to the staff

members that will ultimately increase the performance of Bank

overall.

3 It is advised that promotion be given in due time because of

interesttoworksatisfactory.

4 Itisconsultedthatbankshouldreduceitslargeexpensesinorder

toincreasethevalueofbank.

5 It issuggested thatreasonablestepsshouldbetakentorecover

allabsoluteadvances.

6 The NBL should introduce the use of computers in order to

confront with the nectic business activities. it will also help to

reducetheextraloadofmanualwork.

7 Extracountersshouldbebroughtinordertofacilitateduringthe

rush days the difficulties faced by thebank staff aswell as the

customers.

8 Theperiodofrepaymentoftheloansshouldbeextended.

REFERENCES

1. ByGreenerMichael ThePenguineBusinessDictionaryEdition1995PageNo.10

2. ByMuhammadRaufBeg

MoneyandBanking2ndEdition1993PageNo.55.

3. ByMukhtiarAhmed IntroductiontoMoneyandBankingIstEdition1995PageNo.60

4. ByIsrarulHaq BankingLawandPractice

5. ByDr.SyedAnwarAli BankingIstEditionPageNo.02

6. Annual Report of NBP2000

INFORMEDBY

1. HistoryofNationalBankofPakistan,2006by:(N.B.PManagement

Division)

2. perviezAliKhawaja(ManagerAdmin)

3. http://www.nbp.com.pak

4. Mr.GhulamMurtazaBaloch,InchargeAdmn:Deptt:(OGI)

5. ShafqatAliMahesar(OGIII)

6. Mr.KhadimAlilundBaloch(OGIII)

7. SaeedAhmedKhan

8. AltafAhmed(OGIII)

9. SyedQamarHashmi(Assistant)

10. AijazAliRathore,(OGIII)

11. MissRazia(OGIII)

12. RafiqueArbaba(OGII)

13. SyedShahNawaz(Assistant)

14. MoinuddinMuallian(OGIII)

15. MohammadAtiqKhan(OGI)

16. VariousBankinformationcirculars.No&DateN/A

17. VariousNBPinformationcircularsNoanddatenotavailable

18. IslamizationaofBanking

19. Mr.NomanAhmed

20. Mr.KhadimAliBaloch

21. WaqarullahKhan(OGIII)

22. Mr.NisarAhmedQazi(OGIII)

23. Mr.ImtiazAhmed(OGIII)

24. AbdulHameedBhutto(OGIII)

25. AttaHussainRajpar(OGIII)

CONTENTS

CHAPTERNO.1

INTRODUCTION

1. Introduction 01

2. History&ManagementofNationalBankofPakistan 04

3. ObjectiveofNationalBankofPakistan 07

4. FunctionsofNationalBankofPakistan 08

5. PurposeofStudy 09

6. Methodsofstudy 11

7. Limitation. 13

CHAPTERNO.2

INTERNATIONALFEATURESOFNATIONALBANKOFPAKISTAN

1. InternationalFeaturesofNationalBankofPakistan 15

2. LawRecovery,LitigationsDivision19

3. OrganizationalStructure 24

4. DepartmentsFunctioningunderNationalBankofPakistan 25

CHAPTERNO.3

ACTIVITIESOFNATIONALBANKOFPAKISTAN

1. Computerization 30

2. Decentralization 30

3. ForeignTrade&Operation 32

CHAPTERNO.4

TRAININGANDFACILITESOFSTAFF

1. TrainingtoStaff 34

2. Salaries&Facilitiesofstaff 36

CHAPTERNO.05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BE

OPERATEDBYNATIONALBANKOFPAKISTAN.

1. CurrentDeposit 38

2. PLSSavingAccount 39

3. PLSTermdepositReceipt(PLSTDRS)ORFixedDepositAccount

42

4. ForeignCurrencyAccount 47

5. FutureoutlookofNationalBankPakistan 49

CONCLUSIONANDSUGGESTIONS

1. Conclusion 50

2. Suggestions 51

3. References 52

INSTITUTE OF BUSINESS ADMINISTRATION

UNIVERSITY OF SINDH, JAMSHORO

CERTIFICATE

This is to certify that Business Internship Report on NATIONAL

BANKof Pakistan,hasbeenprepared

SANTOSHKUMARS/ODAYALDAS

UndermyguidanceforthepartialrequirementforthedegreeofMasterof

BusinessAdministration.Itisalsocertifiedthattheworkisfoundoriginal

and the research has been inetienlously carried out and fulfils all the

requisiteconditions.

Sir.ASLAMPATHAN Dr.AnwarAliShahG.SyedAssistantProfessor&InternshipGuide Professor&DEAN

IBA,UniversityofSindh, IBA,UniversityofSindhJamshoro Jamshoro

DEDICATION

Thishumbleeffort

isdedicated

tomybeloved

parents,

whoseloveand

efforts

canneverbe

forgotten.

ACKNOWLEDGEMENT

Praise to Almighty Allah, the omnipresent, the Omnipotent, the

Omniscient, who bestowed upon me the potentially and ability to

accomplishthiswork.

No sequence of works can expressmy sincere gratitude to our

respected Professor and Director, Institute of Business Administration

Dr.AnwarAliShah,G.SyedandguideMr.PerveizAlikhawajawithout

whose valuable guidance, rich experiences, helpful advice, useful

suggestionsandconstructivecriticismandcomments.Icouldnothave

beenabletocompletethispieceofworktitledasBusinessinternship.

Ihavehonourtoexperessmyheartfullgratitudetotheexecutive

and staff member of National Bank of Pakistan, Market Branch

Hyderabad, who kindly gave them acceptance to the topic of my

Internship Report along with many useful suggestions which

encouragedmetocompletemywork.

Thanksforallthosewhoextendtheircooperationforconducting

theworkofBusinessInternship

SANTOSHKUMARMBA(PASS)FINAL2006

InstituteofBusinessAdministrationUniversityofSindhJamshoro

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