Final Doc of Internship

NATIONAL BANK OF PAKISTAN
INTERNSHIP REPORT
BBA PROGRAM
SUMMER 2009
SUBMITTED TO
PROF. NISAR AHMAD
By
MARIAM ASHRAF
L1F05BBAM2026
UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 1| Page

PREFACE
This report is about my internship at National Bank of Pakistan Faisal town Lahore. In order to
be able to cope with the changing environment it is necessary to have some practical
experience. The students are deputed to different well-established organizations. There, they
not only have a close look at the working of their respective institutions but they also take an
active part in their daily proceedings. During this practical course we are provided with an
opportunity to learn that how the theoretical knowledge can be implemented in practical
grounds. I selected to do my internship in National Bank of Pakistan Faisal town Lahore.
During this internship span I have come to know the work criteria of almost all departments of
NBP I spent about six weeks of my internship in various departments like Bills collection,
knowing about western union, making scrolls of different kinds, clearing, bar code scaning e.t.c.
In this I have made analysis on the working and performance just as experiencing as an
employee. I have seen many daily transactions and working criteria of the bank.
During my internship I observed lot of strength and lot of weakness of the banks but I found as a
strongest bank in the country. But the national bank has an edge over the other private and
privatized banks because it is the Government Bank and it has large number of branches in the
country and also in outside the country. My overall experience of the internship is good.

ACKNOWLEDGEMENT
o I am thankful and grateful to Almighty Allah who enables me and gave me the power to
complete my internship report.
o Secondly, I am highly thankful to my internship advisor Prof: NISAR AHMAD who gave
me most valuable guidance.
o Last but not the least to National Bank staff members who extended fullest co-operation
to me in acquiring the knowledge about various aspects of banking.

DEDICATION
This project is dedicated to my parents and teachers

who ever wished to see me as a successful girl and
there prayers are always with me.

TABLE OF CONTENTS
Serial Page
Topics
No No
1 BANKING PROFILE IN PAKISTAN 6
2 INTRODUCTION OF ORGANIZATION 7
3 BRANCHES 9
4 VISION AND MISSION 10
5 ORGANIZATIONAL STRUCTURE 11
6 REGIONAL STRUCTURE 13
7 FUNCTIONS OF NBP 14
8 PRODUCTS AND SERVICES OF NBP 16
9 CORE VALUES 25
10 SALARY STRUCTURE 27
11 DEPOSIT SECTION 29
12 ACCOUNT OPENING PROCEDURE 31
13 DIFFERENT SCHEMES CONDUCTED BY NBP 38
14 INTERNSHIP EXPERIENCE 40
15 SWOT ANALYSIS 44
16 RECOMMENDATIONS 47
17 CONCLUSION 49
BANKING PROFILE IN PAKISTAN

Prior to partition in 1947, banking in Pakistan was dominated by branches of
British banks. The State Bank of Pakistan, the central bank, was formed
after partition in 1948. It assumed the supervisory and monetary policy
powers of the State Bank of India. In the period of 60s to 70s the
emergence of a number of specialized development finance institutions
(DFIs) such as Industrial Development Bank of Pakistan (IDBP) and the
Agricultural Development Bank (ADB). These DFIs were either controlled
directly by the state or through the SBP, and were intended to concentrate
on specific priority sector lending. In 1974 all domestic commercial banks
were nationalized by the Government. The Pakistan Banking Council was
established, which assumed the role of a banking holding company but
with limited supervisory powers. However, PBC was dissolved in 1997,
leaving the SBP as the sole regulatory authority for banks and financial
institutions in Pakistan. Nationalization of the banking sector led to pet
projects. The branch network of NCBs also proliferated in an effort to
provide banking services to all regions/territories of the country, often with
disregard to the viability or feasibility of such expansion.
INTRODUCTION OF ORGANIZATION

NBP was established on 20.11.1949 to provide finance to suitable parties. It came
into existence after two years of Pakistan’s birth, to spearhead the growth
of indigenous commercial banking system to fulfill the requirement
regarding the commercial banking of central and provincial government.
NBP stood behind jute trade, SBP stood behind NBP and the government stood behind
SPB. Speedly it was such that 6 branches came into being at once and the doubts on
our ability to handle this situation were dispelled for ever Now, as the Jute Board and
NBP were in the field, the foreign merchants and bankers also rushed in to get their
share in the business and consequently NBP had to lay out much less finance than it
could. It was classified as a Non-profit bearing and services oriented institution.
Moreover, it was designated as Agent of the State Bank of Pakistan. The Bank has also
played an important role in financing the country’s growing trade, which has expanded
through the years as diversification took place.
In the first five years of the National Bank of Pakistan has trained an
entire crops of Muslim bankers; opened branches all over Pakistan, and
played a dominant role in the financing of Pakistan’s chief export crops
cotton and jute its position as sole fiscal agent of the State Bank of
Pakistan is firmly established while it is essentially a commercial bank the
government itself is the principle share holder and appoints the managing
director it is this factor which distinguished the National Bank of Pakistan
from other commercial banks while it operates in much the same fashion
as they it has taken greater risks when the national interest was at stake,
and it acts as the super head of any extension of the nation’s banking
system.

National Bank of Pakistan maintains its position as Pakistan's premier bank
determined to set higher standards of achievements.
It is the major business partner for the Government of Pakistan with special emphasis
on fostering Pakistan's economic growth through aggressive and balanced lending
policies, technologically oriented products and services offered through its large network
of branches locally, internationally and representative offices.
BRANCHES

The Bank had a network of 1226 branches in the country and 22 branches in foreign
countries. These countries are as follows:
o United States of America

o United Kingdom
o France
o Germany
o Africa, Middle East Region
o Bahrain
o Asia Pacific Region
o Japan
o Republic of Korea
o Central Asian States
o Bangladesh
o Peoples Republic of China
o Pakistan.

VISION
“To be the pre-eminent financial institution in Pakistan and achieve market recognition
both in the quality and delivery of service as well as the range of product offering”
MISSION
“To be recognized in the market place by Institutionalizing a merit & performance

culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial
performance, and Adopting & living out our core values.
UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 10 | P a g e

ORGANIZATIONAL STRUCTURE

Chief Manager
Chief
Operation
Manager
Manager (CRA)
Credit Manager
Credit
Processing
Operation
Manager
Manager Manager Admin
FEX* Manager JB*
Compliance
Inquiry
[Sections] [Sections] [Sections]
FEX Deposits Reconciliation
Audit /Inspection
Export Bills Dispatch
Import Clearing Dead Stock To sign all Br.

Returns Money
Remittance Utilities Security Laundering .etc
F/C A/C Accounts Staff Welfare
Chief Manager
Chief
Operation
Manager
Manager (CRA)
Credit Manager
Credit
Processing
Operation
Manager
Manager Manager Admin
FEX* Manager JB*
Compliance
Inquiry
[Sections] [Sections] [Sections]
FEX Deposits Reconciliation
Export Bills Dispatch Audit /Inspection
Import Clearing Dead Stock To sign all Br.

Returns Money
Remittance Utilities Security Laundering .etc
F/C A/C Accounts Staff Welfare
Cash/Chest
Govt. Collection
*FEX Foreign Exchange

*JB Journal Banking

REGIONAL STRUCTURE
REGIONAL CHIEF
EXECUTIVE
GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER
Advances,Legal Planning Business Administrative

And Recovery Development Wing
Wing Customer Service
And Implementation
Of Audit.

FUNCTIONS OF NBP
The National Bank of Pakistan performs two types of function. It acts as an ordinary
commercial bank, and at places where there are no branches of State Bank of Pakistan
it represents Pakistan, that is why it cannot be privatized. As a commercial bank it
performs the following functions.
o Accepting of deposits of money on current account, saving, term deposit and

other profit and loss sharing accounts.
o Borrowing money and arranging finance from other banks.
o Advancing and lending money to its clients.
o Financing of projects including technical assistance, project appraisal through

long term/short term loans
o Buying, selling, dealing and discounting of bills of exchange, promissory notes,

drafts, bill of lading, other instruments of securities etc.
o Foreign exchange business.
o Financing of seasonal crops like cotton, wheat, rice.
o Receiving of bonds, scripts, valuable etc. for safe custody.

o Carrying on agency business of any description other than managing agent on

behalf of clients, including government and local authorities.
o Generating, undertaking, promoting etc. of issue of shares, bonds.
o Transacting guarantees and indemnity business.
o Undertaking and executing trusts.
o Making investments in other banking companies.
o Joint venturing with foreign dealers, agents and companies for its representation
abroad.
o Participating World Bank and Asian Development bank's lines of credit.
o Utility services.
o Providing Hajj services to intending Hajis.
o Agent to State Bank of Pakistan for collecting.
o Payment of pension on behalf of provincial and central governments.
o Treasury business.
o Gold finances.

PRODUCTS / SERVICES OF NATIONAL

BANK.
DEMAND DRAFT
If you are looking for a safe, speedy and reliable way to transfer money, you can now
purchase NBP’s Demand Drafts at very reasonable rates. Any person whether an
account holder of the bank or not, can purchase a Demand Draft from a bank branch.
PROCEDURE FOR PREPARE DEMAND DRAFT.
o A draft voucher is filled which contains the following information

• Name of the parties involved
• Date
• Amount to be sent
• Account number (if DD is crossed)
o A credit voucher is filled in order to get the excise duty, withholding tax and
exchange commission.
o The sender deposits the total amount of the two vouchers i.e. the debit and credit
vouchers.
o Then the cashier sends the cash receipt voucher to the accounts department and
the account records the amount paid in his cash scroll.

o Accountant gives the DD leaf along with the DD voucher to his assistant who
records the sender’s name, amount and receiver’s name. After writing all the
information in the DD register he gives it to the officer along with the DD for
authentication.
o After authentication the DD is handed over to the sender and bank sends the
advice to the concerned branch. So when the party presents the DD in the
concerned branch its payment could be made.
PARTIES INVOLVED IN THE DEMAND DRAFT
The following parties are involved in demand draft

o Purchaser of sender
The purchaser is the person who sends the money to a particular person payable
at a certain branch.
o Issuing or drawing Branch

The branch from where the demand draft is issued to another branch of the same
bank.
o Drawee Branch
Branch in which the draft has drawn and called upon to pay the amount.
o Payee

The person who is entitled to receive the amount after presenting the demand draft in
the drawee branch.
• TELEGRAPHIC TRANSFER (TT)

This is the most urgent method of remitting the money from one place to another place.
This method is used when the sender desires to send urgently, in this case the sender
request the manager of the branch to issue TT.
PROCEDURE
For sending the TT the manager applies a test. In the test the manager uses a coding
technique. He writes his own code number, which is allotted, to him as the bank branch
code. After making all the conformation the concerned branch makes the payment to
the receiver.
If the sender wants to convey the same massage through telephone then he has to pay
the charges of telephone along with the TT Charges. First the person deposit the TT
amount along with the charges through the credit voucher then his TT sent to the
relevant branch.
• SWIFT SYSTEM
The SWIFT System (Society for Worldwide Inter bank Financial Telecommunication)
has been introduced for speedy services in the area of home remittances. The system
has built-in features of computerized test keys, which eliminates the manual application
of tests that often cause delay in the payment of home remittances. The SWIFT Center
is operational at National Bank of Pakistan with a universal access number NBP-
APKKA. All NBP overseas branches and overseas correspondents (over 450) are
drawing remittances through SWIFT.

Using the NBP network of branches, you can safely and speedily transfer money for our
business and personal needs.
• LETTERS OF CREDITS
NBP is committed to offering its business customers the widest range of options in the
area of money transfer. If you are a commercial enterprise than 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.
• TRAVELER’S CHEQUES
Negotiability: Pak Rupees Traveler’s Cheques are negotiable instruments
o Validity: There is no restriction on the period of validity
o Availability: At 700 branches of NBP all over the country
o Encashment: At all 400 branches of NBP
o Limitation: No limit on purchase
o Safety: NBP Traveler’s Cheque is the safest way to carry our money
• PAY ORDER
NBP provides another reason to transfer your money using our facilities. Our pay orders
are a secure and easy way to move your money from one place to another. And, as
usual, our charges for this service are extremely competitive.
PROCEDURE
The procedure of a pay order varies with the nature of the purpose. If the work is of
huge amount then first the manager writes a letter to the Zonal Chief in order to get
sanction of the work. Then the advertisement of the work is given in the newspaper in
order to invite the contractors. But if the work is small then the branch manager has
discretionary power to select the party whose rate is lowest. After finishing the work the
contractor submits the bill of work on his stamp pad. Then the bank issues a pay order,
against the pay order the contractor gets the amount from the issuing branch.
• MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service.
And we also offer the most competitive rates in the market.
It is the transfer of money from one branch to another branch of the same bank through
mail service. In mail transfer there is no need of advice as the amount is directly to the
receiver’s account.
PROCEDURE
o First a voucher is filled in which the sender writes the amount to be sent, name,
account number of the receiving person with the branch name and date.
o A credit voucher is filled in order to deduct exchange, postage charges and
withholding tax according to the amount of the mail transfer.
o The sender deposits the total amount of the two vouchers in the cash department.
o The cashier gives the vouchers to the accountant after affixing received stamp and
writing the amount in red ink.
o Then the accountant writes the amount paid in the cash scroll and gives the MT to
his assistant.
o MT leaf is filled according to the information provided in credit voucher. He also
writes the same information in the MT register. Then he gives the MT leaf and MT
register to the officer for authentication.
• FOREIGN REMITANCES

To facilitate its customers in the are of Home Remittances, National Bank of Pakistan
has taken a number of measures to increase home remittances though the banking
system
Meet the SPB directives/instructions for timely and prompt delivery of remittances to the
beneficiaries.
• SHORT TERM INVESTMENTS

NBP now offers excellent rates of profit on all its short-term investment accounts.
Whether you are looking to invest for 3 months or 1 year, NBP’s rate of profit are
extremely attractive, along with the security and service only NBP can provide.
National Income Daily Account (NIDA)
The scheme was launched in December 1995 to attract corporate customers. It is a
current account scheme and is part of the profit and loss system of accounts in
operation throughout the country.
• EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its economic base and
restore investor confidence. The bank is now regarded as the most active and
dominant player in the development of the stock market.
NBP is involved in the following:
• Investment into the capital market
• Introduction of capital market accounts (under process)
NBP’s involvement in capital markets is expected to increase its earnings, which would
result in better returns offered to account holders.
• COMMERCIAL FINANCE
Let us help make your dreams become a reality.

Our dedicated team of professionals truly understands the needs of professionals,
agriculturists, large and small business and other segments of the economy. They are
the customer’s best resource in making NBP’s products and services work for them.
• AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidity faith, commitment and pride of farmers
who produce some of the best agricultural products in the world. Agricultural Finance
Services:
“ I Feed the World” program, a new product, is introduced by NBP with the aim to help
farmers maximize the per acre production with minimum of required input. Select farms
will be made role models for other farms and farmers to follow, thus helping farmers
across Pakistan to increase production.
Agricultural Credit
The agricultural financing strategy of NBP is aimed at three main objectives;-
o Providing reliable infrastructure for agricultural customers
o Help farmers utilize funds efficiently to further develop and achieve better production
o Provide farmers an integrated package of credit with supplies of essential inputs,
technical knowledge, and supervision for farming.
Agricultural Credit (Medium term)
o Production and development

o Watercourse improvement

o Wells
o Farm power
o Development loans for tea plantation
o Fencing
o Solar energy
o Equipment for sprinklers
o Farm Credit
NBP also provides the following subsidized with ranges of 3 months to 1 years on a
renewal basis.
o Operating loans
o Land improvement loans
o Equipment loans for purchase of tractors, farm implements or any other equipment
o Livestock loans for the purchase, care, and feeding of livestock.
• PRODUCTION LOAN
Production loans are meant for basic inputs of the farm and are short term in nature.
Seeds, fertilizers, sprayers, etc are all covered under this scheme. If you require any
further information, please do not hesitate to e-mail us.
• CORPORATE FINANCE
Working Capital and short Term Loans
NBP specializes in providing Project Finance – Export Refinance to exporters – Pre –
Shipment financing to exporters – Running finance – Cash Finance – Small Finance –
Discounting & Bills purchased – Export Bills Purchased / Pre – shipment / Post
shipment agricultural production loans
Medium term loans and Capital Expenditure Financing

NBP provides financing for its client capital expenditure and other long – term
investment needs. By sharing the risk associated with such long – term investments,
NBP expedites clients attempt to upgrade and expand their operation thereby making
possible the fulfillment of our clients vision. This type of long term financing proves the
bank’s belief in its client’s capabilities, and its commitment to the country.
Loan structuring and syndication
National Bank’s leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors.
Because we understand our syndicate partner’s asset criteria, we help borrowers meet
substantial financing needs by enabling them to reach the banks most interested in
lending to their particular industry, geographic location and structure through syndicated
debt offerings. Our syndication capabilities are complemented by our own capital
strength and by industry teams, who bring specialized knowledge to the structure of a
transaction.
• Cash Management Services

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

National Bank of Pakistan is at the forefront of international banking in Pakistan, which
is proven by the fact that NBP has its branches in all of the major financial capitals of
the world. Additionally, we have recently set up the Financial Institution Wing, which is
placed under the Risk Management Group. The role of the Financial Institution Wing
is;-
• To effectively manage NBP’s exposure to foreign and domestic correspondence
• Manage the monetary aspect of NBP’s relationship with the correspondents to
support trade, treasury and other key business areas, correspondents support trade,
treasury and other key business areas, thereby contributing to the bank’s profitability
• Generation of incremental trade – finance business and revenues
CORE VALUES
OBJECTIVES
• Remodeling the bank on the lines of latest global practices.
• Converting the NBP in to a viable platform for financial success and growth.
• Stabilization of deposit base.
Shall work to…

• Meet expectations through Market-based solutions and products.
• Reward entrepreneurial efforts.
• Create value for all stakeholders.
Aim to be an organization that is founded on…

• Growth through creation of sustainable relationships with our customers.
• Prudence to guide our business conduct.
• A national presence with a history of contribution to our communities.
Confidence that tomorrow we will be…

• Leaders in our industry.
• An organization maintaining the trust of stakeholders.
• An innovative, creative and dynamic institution responding to the changing needs
of the internal and external environment
• Origination of new ventures.
• Development of new business plans and consequently to become a bank, which

we can all be proud of.
• All strategies are focused to become a leading consumer bank in Pakistan.
• A bank responsive to the needs of target market customers.
• Delivery of superior services to their stakeholders.
Aim to be peopling who…

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

SALARY STRUCTURE
• Bonuses
Bonuses are also given to permanent employees on their performance basis. In case of
very good performance 2 basic salaries are given and in any other case after every six
months i.e. June and December. These are first and second profit bonuses and are
equal to one month's basic salary.
• Allowances:
Allowances included house allowances, transport allowance and utility allowance.
• Provident Fund:
Provident fund is provided to each employee on his retirement. Contribution by
employer and employee.
• Preparation of statements:

Second major functions of accounts department are the preparation of various
statements. These statements are:
1) - Weekly Statements:
These weekly statements are sent at first to NBP head office Karachi.
2) - Monthly Statements:
These monthly statements are sent at first to NBP head office Karachi and then these
statements are sent to head office affairs in consolidated form. All vouchers and
statements signed and approved by manager accounts or who has authority to sign on
behalf of the bank and whose signatures appear in one of the bank’s book of specimen
signatures or a person who has authority to sign internal vouchers and records extent of
its authority will be made by the country manager.
• LEAVE FAIR ASSISTANCES AND ITS TYPES

3 Types of LFA are:
 CASUAL LEAVES 4 leaves are allowed to permanent employees.
 SICK LEAVES 12 leaves are allowed to permanent employees.
 PRIVILEGE LEAVES 15-30 leaves are allowed to permanent employees.
Employee entitlements to annual leave are recognized when they accrue to employees.
A provision is made for estimated liability for annual leave as a result of Services
rendered by the employee against un-availed leaves up to the date of balance sheet.

DEPOSIT SECTION
All types of cash transactions are deled under this section. Now we see the types of
accounts, which are opened in this section.
TYPES OF THE ACCOUNTS
Depositors can open the following types of accounts with the National Bank of Pakistan
o Current account
o P.L.S saving account
o P.L.S Term Deposit Account
o M.I.S (Monthly Income Scheme)
A brief introduction of these accounts is given below.
• CURRENT ACCOUNT
As the name signifies the depositor can draw or demand amount at any time by
presenting the cheque in bank. Unlike time deposits there is no restriction of

withdrawals. The bank neither pays any kind of interest nor deducts the zakat from the
deposits of these accounts. The bank also does not tale any service charges up to the
minimum balance of account from the depositors. The minimum balance required to an
account to be opened is Rs. 5000/-. If balances in account reduce from the minimum
Balance then the bank charges Rs. 25/- as incident charges. In developed and
developing countries
a very significant amount of money is kept under current account. Businessman
normally opens this kind of account.
• PROFIT & LOSS SHARING SAVING ACCOUNT

In these P.L.S accounts the bank gives no fixed rate of profit. These types of deposits
are designed to encourage the saving habits of the people.
The minimum deposit to open this account is Rs. 500/-. After every six months a rate
of profit is announced by the bank and after calculating the amount, it is credit to the
depositor account. Now a day, if an account holder maintains 3000/- minimum balance
throughout the year then his account is eligible for profit. Also on 1 st day of Ramadan’s
Zakat is deducted at the rate of 2.5 % Restriction on withdrawal of heavy balance in
now abolished. Customer con withdraw their amount at no limit.
• P.L.S TERM DEPOSIT

In this type of account the amount is deposited for a specified period of time. This period
varies from 7 days minimum to maximum 5 years. The profit rate is also changes with
the short period to long period. There is higher rate of profit on long term P.L.S T.D.R.
The minimum balance required to open this type of account is Rs. 10000/-. Profit is
announced after six months and then credit to the respective accounts.

• MONTHLY INCOME SCHEME

This scheme is commonly known as (MIS). This scheme required minimum balance
which is Rs. 10000/-. Profit is announced after every six months but it is credit to the
customer’s accounts on every month. Mostly retired persons are like to open this type of
account.
ACCOUNT OPENING PROCEDURE
The customer can open an account with the National Bank of Pakistan in the following
categories
o Individually
o Jointly
o Sole proprietorship
o Partnership
o Corporation
• INDIVIDUAL ACCOUNT
A person can open an account in National Bank of Pakistan in Pak-rupee, first of all
he/she has to fill the account opening form provided by the bank. Then his introduction
is done before the branch manager. An existing account holder of
The bank or an officer of the bank who know him very well can do this introduction. A
copy of his identity card is must attached with his account opening form. If the account

holder is illiterate then he/she provides his/her three recent photographs to the branch.
In order to stop the payment from his account if is necessary to give the instructions in
black and white. The account holder can get the statements of accounts from the bank
at his will at any time without any charges.
JOINT ACCOUNT
A person can open an account in N.B.P in Pak-rupee. An account opening form is
given form that branch where he wants to open his account. In that opening form he
provides complete information about the account holders. If any one or both of them
are illiterate then he or they give the photographs to the bank. Then the introduction of
the person is done.
A copy of their identity card is must attached with his account opening form. He or she
also states the made of operation with is clearly written in their account opening form.
In joint account there is two modes of operation first are “Jointly” and second is “E or S”.
In jointly mode both the persons must sign the cheque. And for any of transaction they
must dually signed the documents while the either or survivor mode any one of them
can sign the cheque and withdraw his money.
• SOLE PROPRIETORSHIP
The person who is the sole owner of a business can open an account with National
Bank of Pakistan after providing the following documents to the bank officer.

o Current municipal license
o Commercial registration certificate
o Copy of identity card
In some special cases when the officer of branch is doubtful about the authenticity of
the documents he can get additional documents for proper verification. The branch
manager studies all documents of the business. If he is satisfied then the account of
the party is opened with the bank. Normally these types of accounts maintained under
Current account system.
• PARTNERSHIP FIRMS
The partnership firms can also open an account with the bank. But for this purpose they
have to provide the certain type of information to the bank. For this purpose a form is
provided to the account holder in which they provide the following information to the
concerned branch and the person who can draw the amount from the bank is also
nominated.
o Name of firm
o Name of parties
o Identity card of partners
o Registration certificate of the firm
LIMITED COMPANY / CORPORATION

In order to open the account of a company the following documents are required by the
bank so that the bank could take action in case of any fraud of discrepancy.
• Memorandum of Association
• Memorandum of Article
• Most recent balance sheet and profit and loss statement

• Resolution of board of directors about the person who is authorized to sign the
Cheques.
• Any other documents
ISSUANCE OF CHEQUE BOOK

Now a days National Bank of Pakistan issue free of cost cheque books. Size of
chequebook is varies. It contains 10 leaves to 100 leaves. The assistant writes the
following information on the title page of the chequebook and chequebook issuance
register.
o Issuance date
o Name of account holder
o Account number
o Type of account
After authentication by the authorized offer on the chequebook register, the chequebook
is handed over to the account holder
DEPOSITING OF THE AMOUNT

Account holder can deposit the amount in cash or draft etc, in his account through credit
voucher. In N.B.P to type of vouchers are used for this purpose
o Green voucher, which is used for Cash Receipts
o Pink voucher, which is used for all Non Cash Receipt like drafts, Cheques,
payment orders etc.
• ENCASHMENT OF CHEQUES

o Issuance of Token
After scrutinizing the apparent tenure of cheque a token is issued to the account holder.
o Verification of signature
After affixing the two stamps i.e. pay Cash and Signature Verified, a cheque is sent to
the accountant for the verification of signature from signature specimen card. After
authentication of signature and posting in his account the cheque is sent to the cash
department for the payment.
o Payment of Cash
Cashier pays the amount to the token holder after getting back the token from customer.
• DEDUCTION OF ZAKAT
From the PLS Saving account Zakat is deducted at the rate of 2.5 % annually on the
outstanding balance of account on the first day of every valuation date i.e. first day of
Ramadan. Minimum balance of the deduction of Zakat is fixed by the Central authority
(CZA) before the valuation date.
• EXEMPTION FORM ZAKAT

The accounts of foreigners (including Muslims of other nations) and Pakistan non-
Muslim are exempted from the compulsory deduction of Zakat. The accounts of
followers of Fiqah-I-Jafria are also exempted from the deduction of Zakat after the
submission of affidavit on a legal stamp paper.
• WITH HOLDING TAX

Whenever a profit is paid on any deposit, it is subjected to the withholding tax at the fix
rate 10 % annually.
• CLOSING OF ACCOUNT
There are many reasons for closing of an account. It is not a good indication for the
business of the bank. Some of the more common reasons are as follows
o Account holder’s own request
o Death of the account holder
o Bankruptcy of the account holder
o Closing of account due to bad conduct of account holder etc.
An account is closed at the request of account holder or as a result of improper conduct
of the accept holder or because of nil balance of the account. In first case account
holder requests in black and white to the branch manager to close his account. While in
second’s case the branch manager is authorized to close the account.
But bank before closing the account first sends a letter to the account holder that his
account will be closed.
So after fulfilling the legal requirements, it is marked of the accounts holders number
that the account has been closed.
• Documentation Requirement
All potential cardholders must complete and sign NBP’s credit card application form.
The application form must be accompanied by the following
o Three-passport size color photograph bearing the name of the applicant at the
back.
o An attested copy of the National ID Card.
The following documents are also required depending upon the applicant
• Individuals (salaried)
A copy of three months bank statement, where the salary is directly credited into bank
account or latest salary slip.
• Individuals (self employed)

The individuals are required to provide personal bank account statement for the last six
months, personal tax assessment order (for last two year), and one of the following.
Business premises rent agreement / property deed (for sole proprietors) or attested
copy of partnership deed (for a partner in a firm) or Attested certificate of share holding
duly stamped and signed by the secretary of the company (for company owner).
• Individuals (with guarantee)

The applicant is required to provide a guarantee from the company / partnership firm
duly signed by the authorized signatory / all partners, along with the following
documents.
o Company Guarantee
Copy of memorandum and articles of association with certificates of incorporation of
guarantor.
o Partnership Clients
o Attested copy of partnership deed.
o Tax assessment order for the firm (for last two year)
o Audited financial statements of the firm (for last two year).

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:
o Hajj Mubarak Scheme
o NBP Advance Salary Scheme
o Fund Management Scheme
• HAJJ MUBARAK SCHEME

For the convenience of a person with a limited income who desires to perform Hajj, Hajj
Mubarak Scheme is introduced. Moreover, National Bank of Pakistan processes the
Hajj applications of thousands of people successfully more than any other bank in
Pakistan.

• NBP ADVANCE SALARY SCHEME

This facility is available to permanent employees of the:
o Federal and Provincial governments
o Semi-governments, autonomous, semi-autonomous, local bodies, and
government corporations
o 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.
• 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.

INTERNSHIP EXPERIENCE
My branch is not a big branch online processure is not there and I have only performed
the limited activities due to small branch and the activities which I have performed
during my intership are:
• Transfer vouchers
o Separating all the pay order of request for transfer of funds, credit vouchers,
intercity Cheques
o Checking that these were properly filled and signed.
o Arranging all those according to the account number.
o Placing them in the register and branch code, date, and number of debit and
credit vouchers columns was filled.

Account Opening Department

I This department deals with opening current and saving account for its customers and
all matters regarding thereof. The customers opening current and saving accounts can
be categorized as following.
o Individual
o Firm
o Company
o Trust
o Staff
o Others
OPENING ACCOUNTS
o For opening an account firstly all the customers have to fill a form prescribed by
the bank.
o The person is required to bring some reference or introduction for opening the
account. Introducer may be the person who has any account with NBP.
o Some important information regarding introducer e.g. the name and account
number of the introducer is written on the space provided on the specimen
signature card.
o Then in order to find out whether he is a true introducer or not, a letter is sent to
him thanking him for this introduction so that anything wrong may come into
notice.
There are different requirements for different types of accounts and accountholders.

DEPOSITS
The procedure undertaken upon receiving deposits from the customers is as follows:
o Examining the deposit slip to ensure that the name and the account numbers are
clearly indicated.
o Counting the cash and cheques and agree the total with the amount on the
deposit slip.
o After that the pay in slip is validated for cash transaction and transfer and
clearing transfer as appropriate before the counterfoil is handed over to the
customer.
• WITHDRAWALS
o Cheques can withdraw amount.
o The withdrawals can be made only at the branch where the account is
maintained. The officer under his full signature authorizes all cash withdrawals.
o No third party withdrawal is permitted.

o In current account, the bank does not offer any interest.
o We can deposit or withdraw any amount during banking hours.
• ISSUANCE OF CHEQUE BOOK

o After receiving the cheque book requisition I take out a cheque book according to
the requirement.
o Then I noted down the date, serial number, account holder name, account
number, amount deducted from his account in a register named “cheque book
issuance Register”
Date Name Account Amount Serial no. of cheque
Number Debited book

NBP have a special policy they issues cheque books to its employ free of cost. After
noting the information in a register a stamped the entire cheque book leaves containing
the account number of the account holder. Then I filled the requisition in the cheque
book writing the account number, account title, serial number of cheque book.
Another interesting work which I perform in this department is that just to make a phone
call to those account holders whose cheque book is in present in the bank but they are
not coming to collect it. Before cheque book is presented to the account holder cheque
book issuance is registered.
Cheque book issuance register includes:
o Date
o Cheque book number
o Account holder’s name
o Account number
o Date
o Initials
o Remarks
I used to separate all those requisitions and carefully scrutinize them and criteria
were:
o Account number
o Account title
o Number of cheque books required
o It should also mention that how many leaves cheque book is required because
50 leaves cheque book bank charge Rs. 150 for that and 25 leaves cheque book
Rs. 75 is charged.
o The authorized officer had duly signed it. On the backside accountholder
signature and the bearer signatures are present.

CLEARING DEPARTMENT
Main branch receives the cheques from all of its branches and makes the lots of these
cheques again. Main branch sends these cheques to the state bank of Pakistan where
a clearinghouse exits. In this clearinghouse the representatives receive their cheques
and go back to their bank's main branch. Then the main branch sends these cheques
to their relevant branches where the validity of these cheques is verified and the
accounts of the relevant clients are affected.
The statement of clearing was submitted before 1.00 P.M. daily. The whole procedure
of clearing is completed within two days.
SWOT ANALYSIS
• STRENGTH
National Bank of Pakistan gets the followings Awards:
o Bank of the year for the 2004

o Foreign exchange bank in Pakistan 2005

o Best Bank of the year 2005 of Pakistan
o Bank of the year 2005 for Pakistan
o National Bank of Pakistan introduces the Advance salary plan you can take 15
Advance salaries from the National Bank of Pakistan.
o Bund road branch open in August 2005 in one year his current A/c holders are
almost 500 and PLS A/c holders are around 1500.
o National Bank of Pakistan has very effective Network of branches all over the
country. Every 10th Pakistani is A/C holder of National Bank of Pakistan has
made huge investment in almost all the important economic sectors of Pakistan.
National Bank of Pakistan not only has made investment in industry but also in
small scale industry as well. National Bank of Pakistan has efficient & less
bureaucratic set up.
• WEAKNESS
o No consumer banking has offered by the National Bank of Pakistan to its clients
like phone banking evening banking etc.
o Computer literacy is very weak over there.
o For withdrawing cash against the cheque the process is too slow
and old and many other foreign bank adapting new method.
o Old employees are not cooperative with the customers and also rigid. It might be
due to their low qualification.
o Machinery and equipment like stationary are not very much good.
o Most of the national bank branches are offline.
o Method of entering the Sui Gass Wasa Bills and Government
receipts are manual which is not effective.
• OPPORTUNITY
o Now there is a trend that financial institution are going towards to the Islamic
banking .For National Bank of Pakistan it us the big opportunity if he deal in
consumer banking because new banks deals in consumer banking and earn lots
of profit. The consumer banking is the one of the low risky sector in banking .as
the State bank is collecting the funds form public with the name of Islamic
deposit.
o National Bank of Pakistan oldest bank in the country people do rely on this bank
with some additional efforts bank can attract high deposit from Pakistan and
overseas.
o Now-a-days National Bank of Pakistan has been investing almost 18% of its total
investment on cotton business; along with investment in cotton it should invest in
other cash crops, i.e. Rice, Sugar Cane, Tobacco, Wheat etc and there related
agro based industry.
o Instead of emphasizing on big & long term projects bank should concentrate on
small scale investments heaving small maturity period.
• THREAT

o Foreign banks are financially strong and their way of doing business is very
moderns. They deals only in corporate and earn lot of profits from very little
numbers of customers with low expenditures.
o New incoming local & specially foreign banks those are main cause of stiff
competition in the market.
o Pakistani economy is very weak this factor also change the policies of State bank
this is the limitation which is faced by every bank in Pakistan like day to day
change in liquid ratio and war taxes, and decrease in the dollars rate badly
damage the business if the financial institutions.
o First threat that bank has to face is the Privatization, down sizing & restructuring these
changes could make drastic effects as well
RECOMMENDATIONS
o I recommend that National bank of Pakistan should flourish certain marketing
plans to attract the customers by giving them certain incentives and beneficial
schemes to the customers as other competitor banks are doing so.
o Also the Government should take interest to recover its bad debts, which can
improve its financial position.

In case of giving the loans, it is necessary to check the repute of customer towards

loan repayment. Bank shouldn’t advance the money to those people who are addict of
rescheduling of loans due to their political influences. Instead providing loans to these
persons, loans must be advanced to the well-reputed businesses and industries
having good record of loan repayment.
o Along with the officers, the training must also be given to the clerical staff. Because of
N.B.P. are running on manual system and the training of its staff directly improving
their efficiency of work.
o Present training program for its officers is need to be improved, as this program
instead of improving the efficiency of officers is merely a burden for the bank in the
form of heavy T.A. , D.A. and cost.
o Working conditions must be improved for the employees. Bank will definitely get more
benefits after some expenditure on the working conditions as it improves efficiency
and productivity of the employees.
o Special attention should be given to the behavior of the employees towards the
customers, as customer is the most important person for any bank.
o To motivate the employees of the bank, regular bonuses and incentives should be
given to them.
o There is also a need of proper recruitment and selection program. New young talent
should be introduced to inject the new ideas.
o Deterioration in efficiency is mostly due to promotion without merit. So promotions
must be awarded on merit and also when due.
o Political influences in the bank should be eliminated.

o There must be a friendly environment among all the employees as it enhances the
trust and sincerity.
o NBP should be focusing its attention towards the share of traveler cheque.
o Branch manager should be trained in the field of selling to serve better according to
the expectation of customers.
o It is strongly recommended that N.B.P. should go for computerization rather than
manual work, which is very slow and time, consuming process. In this age N.B.P.
even does not have a partially computerized system where as other new competitor
banks are now going towards on-line banking services.
o There are many employees who are working on ad-hoc basis creating dissatisfaction.
The deserved should be made permanent employees.
CONCLUSION
I am thankful to my intership advisor that he gave me an opportunity to do my internship

at NBP. It gave me a very good experience on how to work in a bank and also it was
great fun to meet some very nice people the employees at bank are very helpfull. As my
intership time was less so I was unable to learn more things.

I observed that NBP has some very good points and these are:
o As a whole bank is performing well in the financial markets
o The overall working environment is good.
o Management gives full support to their staff and provides them benefits and
reasonable salaries.
o NBP is very popular among business circles.
o The employees are very cooperative and helpful and they have friendly relations
with each other.
NBP is working progressively and the management is performing its role in a very good
manner.All the policies of the bank shows a positive trend, which indicates that
profitability; solvency and liquidity position of bank is sound.
BIBLIOGRAPHY
o http://www.nbp.com.pk

o www.google.com
o www.askgeeves.com
o www.encyclopedia.com
o www.vickipidia.com
o www.bankerclub.com
o www.sbp.org.pk
o http://www.ibp.org.pk

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NATIONAL BANK OF PAKISTAN

NATIONAL BANK OF PAKISTAN

PROF. NISAR AHMAD

UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 1| Page

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This project is dedicated to my parents and teachers

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1 BANKING PROFILE IN PAKISTAN 6

4 VISION AND MISSION 10

8 PRODUCTS AND SERVICES OF NBP 16

12 ACCOUNT OPENING PROCEDURE 31

13 DIFFERENT SCHEMES CONDUCTED BY NBP 38

BANKING PROFILE IN PAKISTAN

UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 5| Page

Prior to partition in 1947, banking in Pakistan was dominated by branches of

after partition in 1948. It assumed the supervisory and monetary policy

emergence of a number of specialized development finance institutions

(DFIs) such as Industrial Development Bank of Pakistan (IDBP) and the

Agricultural Development Bank (ADB). These DFIs were either controlled

on specific priority sector lending. In 1974 all domestic commercial banks

were nationalized by the Government. The Pakistan Banking Council was

established, which assumed the role of a banking holding company but

with limited supervisory powers. However, PBC was dissolved in 1997,

institutions in Pakistan. Nationalization of the banking sector led to pet

projects. The branch network of NCBs also proliferated in an effort to

provide banking services to all regions/territories of the country, often with

disregard to the viability or feasibility of such expansion.

UNIVERSITY OF CENTRAL PUNJAB, PCBA-PICS 6| Page

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o United States of America

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“To be recognized in the market place by Institutionalizing a merit & performance

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Import Clearing Dead Stock To sign all Br.

Export Bills Dispatch Audit /Inspection

Import Clearing Dead Stock To sign all Br.

*FEX Foreign Exchange

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GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER

Advances,Legal Planning Business Administrative

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o Accepting of deposits of money on current account, saving, term deposit and

o Borrowing money and arranging finance from other banks.

o Advancing and lending money to its clients.

o Financing of projects including technical assistance, project appraisal through

o Buying, selling, dealing and discounting of bills of exchange, promissory notes,

o Foreign exchange business.

o Financing of seasonal crops like cotton, wheat, rice.

o Receiving of bonds, scripts, valuable etc. for safe custody.

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o Carrying on agency business of any description other than managing agent on

o Generating, undertaking, promoting etc. of issue of shares, bonds.

o Transacting guarantees and indemnity business.

o Undertaking and executing trusts.

o Making investments in other banking companies.

o Participating World Bank and Asian Development bank's lines of credit.

o Providing Hajj services to intending Hajis.

o Agent to State Bank of Pakistan for collecting.

o Payment of pension on behalf of provincial and central governments.

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