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Chapter 1

Introduction

NBP is a commercial Bank in which operate different tasks perform relate to banking sector in
Pakistan. NBP is one of public bank in which facilitate mostly public sector in Pakistan. Now
NBP moving toward modern technological techniques for the bright future of their customers
and relate all organizations.

1.0 Background of study

Internship is actually training from a particular company to gain the knowledge of working
with the permanent staff of the particular company. I did my internship in NBP & gain the
knowledge of what they do in the branch. I actually love to join the banking sector after my BS
Commerce that’s why I chose NBP for my internship to gain the knowledge of bank. Its
competition all around so it’s the time to know about the knowledge of a company because it
can prove beneficial for me after my graduation. I worked in different departments of NBP
&gain knowledge about what they do there. This type of training also enhances the inner
capabilities of one ‘selves.

1.1 Purpose

The purpose of my internship as I early mentioned that to gain the knowledge about the NBP.
I just don’t get the knowledge about the company I also want to see that isn’t this the best
option to do a job in this sector. Because during internship u can easily understand the working
condition of that particular company.

1.2 Scope

Scope of my study is that I can now understand the way to perform activities in NBP. I almost
gain the knowledge about the NBP. Scope of internship is to tell the newcomers the way to
perform the job in a better way. Training is the only way through any company can get his
performance in a batter way.

1.3 Objective
Objective of this study is that to know how about all the departments of the banking sector in
Pakistan. And checkout about NBP Ali Pur Chattha branch code (0541) full detail for the
learning the banking latest technological skills and knowledge for the future purpose. Now I
should be learned about different banking sector of Pakistan and international banking process.

1.4 sources of collection of data

Following these below;

Primary source: it’s the information that I personally get during my internship in a particular
company.

Secondary source: It’s that information that I can collect from internet such as the annual
statements of the company.

1.5 Organization

In this financial institution, my main purpose in internship practicality for the banking skills
and knowledge. In Pakistan, mostly banks is relate to privates sector but Nation Bank of
Pakistan is only the one govt bank in the sector of banking so that I choose this organization.

Chapter 2

Back ground of the institute


The national bank of Pakistan is the main govt banking of Pakistan. The NBP work as a
Commercial bank in a Pakistan. The NBP work under the state bank of Pakistan. They did
those work where the SBP not reached or presence. They work as a agent of nbp. They work
both commercial and public sector. The NBP provides the funds to the people andthe industrial
sector. Tthey provide the debt to the other Commercial bank or industrial sector.
History of national bank f pakistan
The history of national bank f pakistan is that The NBP is established on noveeember 9 1949
under the NBP ordinance 1949. The head office of NBP in Karachi annnd Lahore.

Nbp jadda deal a branch of opened in araya in 1949

Bahawalpur ssaderes in 1950, opened by the nbp.

At that time in 1955 by a branch of nbp was in London and Kolkata

Opened a branch in Iraq, Baghdad 1957 nbp.

Opened a branch in Dar nbp in 1962-s.-Salaam, Tanganyika.

Nbp Government Baghdad in 1964, adopted s branch

The Government of Tanzania in 1967 adopted nbp branch

In 1977, and established the nbp Cairo a foreign mind

Nbp amalgamated Mehran Bank in 1994 of

In 1997, Turkmenistan in Ashgabat were to branch operations of nbp

Nbp established a representative office in Almaty, Kazakhstan in 2000

Nbp 2003 got a branch in Afghanistan Afghanistan to a permission letter opened.

Nbp in 2005 it closed in Cairo foreign branch.

Department of National bank f pakistan


Here we explain the department of the banking in which bank deal with people s and govt
institution
Credit department
Agri Credit
Gold credit
General credit
Foreign exchange department
ATM
General banking department
Account opening department
Remittance department
Account department
Cash department

Briefly explain the department

1 Credit department
Credit department is that the department provides the loans or debt to the people on the basis
of mortgage

 agri credit:
agri credit is that they provides the fund or debt to the formeron the base of or they hold
mortgage the paper of their field and then pay a debt on interest.

 Gold credit:
Gold credit is that the NBP pay a loan to mortgage the peoples gold and then pay a loan. The
Bank charges a interest against the loan. Bank charge a 13.5% per anum against the loan.

 General credit:
General credit is that the bank pay a loan to the general public who have a need. And bank pay
a loan according to there needs and charge a loan.

2 Foreign Exchange Department:


Foreign exchange department is that they deals with the foreign affairs. And bank provides the
foreign exchange facility to the people.
3 General Banking Department:
General banking is that they deals with the over all department like:

 Account opening department

 Account department

 Cash department

 Remittance department

 Account opening department:


Account opening department is that they deals with the account of people. In this department
they open the peoples account and people can submit there money.

 Remittance Department:
Remittance department is that they provides the cash to the people. And cash is that the people
send him or her money and they can get money from the bank.

 Account Departments:
Account department refers to the account statement on daily, weekly, or monthly basis. And
they generate the account statement on the requirement of peoples or according to peoples
needs.

 Cash Department:
Cash department is that they deals with the cash transaction like as follow:

They must be balance the credit and the debit side at the end of the every day.

It deals with in cash the peoples withdraw and deposited there cash by clients in the bank.

3 ATM:
NBP also provide the ATM machine facility to the peoples for 24 hours. People can easily
access the ATM machine they can use without any charges and in ATM people can withdraw
amount from there account.
Offices of the branch:
There are the following offices in the branch of NBP Ali Pur Chatha branch:

 Manager Office:
The main office of the bank is that the manager office and there is a well decorate and well
furnished.

 Cashier office:
The office in the branch is the cashier office. And in this office only enter the staff member
because in this have only cash so that no one can enter in the cashier office.

 Remittance office:
Remittance office also has in the bank in this the remittance payment and the pension payment
withdraws.

There are the main office in the branch and also have a big hall and washroom.

Current staff of the NBP:


There are almost have a 12 staff member in the branch

Branch Manager Ashfak warraich


Operation branch manager Amir Nadeem
Credit officer Aslam warraich
Accountant Ali Hassan
Head Cashier Mazhar Hussain Cheema
Cashier ?
Gold officer Sarfraz Ahmad Cheema
Clerical staff Ahmad Nadeem
Guard Bashir Ahmad
Guard M Naveed
Messenger Riaz Gondal
MessengerM aslam
Training:
There are 5 to 6 people that received training & did their internship work from this branch of
NBP. Employees also done their training according to their wants and need and now this branch
of banking sector is converted towards computerized system so thats why branch of NBP
giving training to their employees according to their requirement of their needs and this new
technology. So that they done all the work in the computer system because there is less chances
of error during the transaction.

Work load
NBP is the govt sector. So that’s why the timing of the NBP is quite different to the private
sector. The timing of this Branch or organization is that

From 9.00 am to 4.30pm (Monday to Thursday)

From 9.00 am to 4.30pm and 12.30 to 2.30 jumma break (Friday)

Holiday (Sunday and Saturday)

It’s the time when the clients or customers can access or get the facility of the bank. But the
employees have to stay for the closing of the banking transaction which may often lead down
to 8 to 9pm.

Promotion system:
The promotion system of the branch is that the promotion on the basis of knowledge and
experiences if the employee have more knowledge and experience then they can easily
promote. And the other promotion criteria is that the organization require the paper or test if a
employee can easily passed this test then they can be promote but the main thing is that the
pass the test of the organization.

Critical analysis of the branch


The work of this branch of NBP is too much poor. Employees never try to well dressed its like
old fashion bank..the building of this branch of NBP is so old & rough. And have no paint in
the branch and also have no sealing in this branch they look like a too much old building. And
it’s should be changed their building or well paint and sealing in the branch. and work for its
maintenance. The clients or regular customers of the branch are not satisfied with their work
as there is a lots of work of the pensioner. Customers are almost old because mostly or
pensioner so they are not satisfied with the work or performance of the bank. the budget is so
good because it is situated in the main road of ali pur and Gujranwala. All the employees of
the govt sector open their accounts in this branch because this is the govt branch also this bank
is giving facility of advance salary this facility of ATM and this facility attract the people.

 Communication system:
Communication system of this branch is so good because all the employee work together and
the entire employee is very much honest and hard work so that there is a good communication
system of the employee. And these employee work together for a long time so that they work
as a friendly. And the main communication system is online because they send all the day
activity to the head office Karachi so that is very good communication system of NBP.

Policies:
NB of Pakistan has a separate finance section. Its purpose is to give the loans to the needy
peoples for their needs. And also provides the loans to those peoples who done a small or large
scale business.

Bank also provides the loans to those peoples who use the bank as a advance loans. The
management of the NBP will be very careful while giving the loans to the peoples.

The person who are involve in the any type of business bank provides the finance to the
business man and check all there documents if bank satisfied there documents then bank grant
the loans to the business man for their business.

Under the Islamic laws of financing from 1982 onwards, NB of Pakistan give a loans on the
basis of “Mark-up” instead of interest.

Mark-up rate is different according to the type of loan.

function of NBP:
 Collecting the claque
 Deposit the money
 Withdraw the money
 Remittances
 Transferring of the money
 Provides the loans
 Provides Lockers
 Agri finance
 Gold finance
 ATM facility
 Purchasing shares for the customer
 Collecting the challan
 Collect the govt institution fee
 Pay the pensions to the employee

Success:
 They get the "Best Emerging Market Bank from Pakistan for the year 2005 'Worldwide
Finance' USA, May 2005
 The NBP is one of the Top 100 Banks of Asia Euro cash UK, March 2005
 Best Bank of the year 2001, 2003 and 2004 for Pakistan 'The Banker' money related
circumstances Group UK.
 Best Foreign Exchange Bank in Pakistan worldwide Finance USA, March 2004
 The Top 1000 Banks on the planet and Number 1 in Pakistan the Banker Financial
Times Group UK, July 2005
Internship program

 Introduction of the branch:


I done my internship at national bank f pakistan Ali Pur Chattha branch. During the work I
really enjoyed with the staff members and the other peoples of national bank f pakistan Ali Pur
Chattha branch. Where I done many task. And have a many fun with the staff members they
are all very good honest, hard worker and friendly behave with me. It was impossible that work
in different departments in limited time of internee work. But on the request they told me and
trained in over all departments. I am very thankful to the Mr. Sarfraz Ahmed Cheema that
provides me the learning environment on my request. And also they help me during the work
they also provide me the friendly environment.

It is situated at the main road of Ali Pur and Gujranwala. The code of this branch is 0541. The
branch of national bank f pakistan Ali Pur Chattha provides the all facilities to their customer
and clients. And also provides the internee work to the student and conduct a training session
for their employees betterments..

And during my internship time I done many task and learned something are as follow:
My 1st and 2nd week of internship work:
During the my 1st and 2nd week I fill the some slips chaque or form, in the 1st and 2nd day I am
confused and hesitate because they are all new for me I don’t know the staff of the branch in
1st 2 to 3 days I meet him and introduction of the employees.

Then start my work I went to the 9 am to 4 pm and then the 1 staff member that fill the slips
and chaque of those peoples who do not write their chaque I write their chaque and also fill the
slips like:

Pay slip

Voucher

Debit slip etc

I only fill the slips and then I know the staff and have a friendly environment. Some days I
done these work only and then come to the cashier office I read the claque read the chaque and
passed or rejected the chaque. But in the cash department many customer daily comes and
cashed their chaque. The cashier is too much busy person of the branch. Because there are
many people’s withdraw their amount and also deposit the amount in the bank.

I am also tired in the cashier office because they have so much work.

People uses the pay slip for the cash depositing in the bank

Following types of cash deposit slips below

For current account holders

For saving account holders

Procedure:

 Acceptance of Check

The money is paid to the customer against their check. The accompanying imperative focuses
are remember while get the check from the client. Check ought to be drawn on NBP. It ought
not be post dated. Chaque have word bearers the word conveyor ought not be crossed.
Installment is not halted by the drawer. Sum in words and figure ought to be same.

 Affirmation of Signatures

In the wake of getting the chaque the check the mark as indicated by their record signature and
the chaque signature. On the off chance that they coordinate then send it to the following
procedure generally dismisses the chaque. On the off chance that reject the chaque then they
again fill the chaque and feast there right signature. At that point check passed.

 Acceptance of Cheque

The cash is paid to the client against their cheque. The following important points are keep in
mind while receive the cheque from the customer.Cheque should be drawn on NBP.It should
not be post dated.Chaque have word bearers the word bearer should not be crossed.Payment is
not stopped by the drawer.Amount in words and figure should be same.

 Affirmation of Signatures

After receiving the chaque the verify the signature according to their account signature and the
chaque signature. If they match then send it to the next process otherwise rejected the chaque.
If reject the chaque then they again fill the chaque and dine there correct signature. Then cheque
passed.

 Computer Terminal Process

After affirmation the signature cheque received for the computer process. And then
then computer operator checks their balance from their account. And then also check
that the account holder stops the payment or not if stop then reject the chaque. After
confirming these two points then they send to the cashier office after their signature.

 Payment of cash

After checking the chaque is posting for cash to the next officer. The cashier passed enters the
cheque in “cash paid register” and pay against the second signature of the receiver the back of
the cheque. And then they payment to the cheque holder.

I done my work for 2 days and these work is simple and enjoyable. In this I enjoy a lot and
after two weeks the overallstaff knows me and I also know the staff memberand know we
create a friendly environment. And done all the work in 2 weeks there is a well and good
experience for me. Because this is the 1st time for me that I done the work.

3rd and 4th week of my internship work:


Know the start my 3rd week and for two weeks I done the remittances and pension payment.

 Remittances:

Remittances is that the transferring the money from one place to another or or from abroad the
send the money to the Pakistan is all about the concept of remittances.

 Pension payment:

Pension payment is that the pay the cash to all the govt retired peoples for their well fare and
betterment. And the national bank f pakistan also pays the pension fund to peoples.

 Remittances:
The 3rd week of my internship work is upon the remittances with the credit officers the credit
officer work the remittances. And in this the customer come to the bank for withdraw their
cash. The customer comes to the bank with their CNIC copy and original CNIC. And also they
write the code and the transaction I’d.

The customer write the transaction id and their contact no on the CNIC copy and they give to
the credit officers and the credit officers open their file and log in upon the NBP online and use
their User Name And Password then logged in with the file and then they checked the
transaction I’d and the password that given by a sender. Then checked if the the payment show
then they print out of this page and signed from the receiver and the credit officer himself
signed with their stamp and verify this. Then this page or printout the receiver keep in hand
and go to the cashier and then the cashier after verification signed and pays in cash to the
receiver and they write in the ledger.

I done this work for a 1 week in starting I only stamp and signed of the receiver upon the draft.
And then after 3 to 4 days I generate this draft but the signed upon this draft done the credit
officers. then checked the original CNIC and then give the draft to the receiver and then
receiver received this money.

 Pension payment:
Pension payment is that the retired employee of the govt received after the retirement govt pay
these fund to the employee of their retirement that they can survive in the society and there
battement and welfare.

In the 1st week of the new month the employee come to the bank for receiving their pension
fund and in the 1st week of the month no of retired employee comes and in these days have a
much more work for all the staff of the bank. Many no of ladies and gents come to the bank for
receiving their pension.

The retired employee comes to the bank and goes o the pension office and where the pensioner
officer generate the pension draft according to their pensionfund. The retired employee come
to the office with their employees dairy or pension dairy.

 Pension dairy:

Pension dairy is that the retired employee have a dairy and in this dairy the all introduction of
the employee and their department with their pensioner i.d. the officer of pension log in same
like the remittances.

When the pensioner officer log in with their account and then they check the pension from
their account with the employee pensioner I’d and then generate the pensioner draft and then
after generating the draft print out this page. And then after the printing they verify with their
name and CNIC and then after verification they signed from the pensioner and then the officer
stamp and himself signed upon the printing draft or page. Then these page gave to the employee
and then they received a cash from the cashier office or cashier counter.
I did a help in the 1st 3 to 4 days the pensioner officer because no of people come for their
pension and I stamp upon the generating page and then the officer signed upon the printed
page.I did this work for a 1 week. And the 1st 10 days of the month no of retired employee
come to the branch for receiving their pension.

The NBP only the single branch of Ali Pur Chattha that provides the pension facility to the
peoples. So that all the employees visit this branch and this is also the branch of NBP and the
NBP the bank of the govt. in a 1 week I know about the pension payment who we can pay the
pension payment to the employees.

But now they making ATM card for their pensioner that they can easily get the amount of
pension or receive the amount of pension. In this way they can’t come in the bank and also
can’t wait for the online system they can easily received the amount from the ATM machine.
Through this way also the burden of the bank decrees and also staff of the bank can relax.

In these two weeks I done the remittances and pension payment. After these two weeks I have
some know how about the pension and remittances that who we can generate the pension fund
draft and the remittances draft. These two weeks are some boring because this work not a
interesting this work is boring boring.

5th and 6th week of my internship work


The 5th and 6thweek of my internship work is related to gold loans and filling the ledger or
prepares the ledger manually.

In this work the Gold credit Officer is Sarfraz Ahmed Cheema. They all the work or process of
the gold loans. in the gold loan is that the peoples who have a need of cash or finance they
come to the bank and bank provides the loans to these peoples against theirmortgage in there
custody.

The bank at least 20 to 30 % extra amount hold or more value of gold hold in their custody and
give a loan if a someonecan’t pay the loans then bank don’t bear a loss. If someonecan’t or
don’t pay the cash then bank sale their gold and get the all amount of the gold. But mostly use
a reference for getting the loan against their gold. Bank provides the loans against the interest.
And the interest is 15.5 % but in this year the ratio of this interest decrees by 2 % and now the
interest rat is 13.5 % per anum
The needy peoples come to the bank for getting a loan with their gold. They 1st of all weight
the gold and then the gold check by the banks after satisfies the gold is original and has a value
then they start their next process.

After this they make a copy of the gold for credit. And then in this copy the the borrower signed
in the copy with there pictures and CNIC copy. After the signature the gold officer chek all the
docoument and after verification they himself signed upon the copy that prepare for gold and
then this copy send to the manager for signature and verifying the manager check the copy and
then the manager signed after verification then the debit slip for loan gave to the the borrower
and then borrower get cash from the cashier.

And this loan have a limited time and in this time the loan pay back to the bank with the interest
if any body cant pay the loan then they must they renew their gold. And in this process the
borrower pay a interes amount to the bank and then renew their gold if they cant renew their
gold then the gold after 3 three notification their gold can be sold for getting the amount of
bank that the bank give a loan to the borrower. After the renew their gold then borrower have
a life for their pay back the loan. The date1 year extend after the renew of the gold. And in this
process the gold credit give to the needy peoples.

If peoples can withdraw their gold then they pay back the whole amount with the interest rate.
And then they can get gold from the bank.

The bank closed the borrower account when they withdraw their gold.

After this work I start the new work in this work I filled the entire ledger manually. In this
filled the manually the ledger of gold loans and notice for the renew the gold. In this the all the
gold loner bio data write in the ledger. The name the father name CNIC copy with pictures.
And the address of the loaner also writes. This work is boring for me because in this we only
write. And this is boring for me.
Financial Analysis

"Financial statement analysis is the process of identifying of financial strengths and weaknesses
of the firm by properly establishing relationship between the items of the balance sheet and the
profit &loss account," and it is done through ratio analysis.

Ratio Analysis

Ratio means “one number expressed in term of another a ratio is statistical yardstick by mean
of which relationship between two or various figures can be compared or measured. Here we
are going to explain the ratio analysis of NBP.

General Ratios Analysis

Solvency Ratios

Solvency analysis of a firm indicates the amount of the other people’s money being used to
generate profit. In general, these analyses are more concerned with long term debts, because
these commit the firm to a stream of payments over the long run. Solvency analysis includes:

 Proprietary ratio
 Debt ratio
 Debt to Equity ratio

Proprietary Ratio

Total equity
Total Assets

Year 2014 (000) 2015 (000)

Total Equity 81,367,002 94791919

Total Assets 817758326 944232762

Ratio 0.10 0.10

Debt Ratio
Total debts
Total Assets

Year 2014 (000) 2015 (000)

Total Debts 40458926 45278138

Total Assets 817758326 944232762

Ratio 0.04 0.04

Debt to Equity Ratio:


Long term Debt

Equity
Year 2014 (000) 2015 (000)

Long term Debts 40458926 45278138

Equity 28910798 33445409

Ratio 1.4 1.35

Overall Comments: -

The overall leverage position is showing better trend as compare to previous year. The
contribution of equity in total assets is seems same to the debt, while the debt contribution has
been increased. Equity ratio shows the better condition of the bank. Solvency Ratio is in good
condition. So we can say that overall Solvency condition of the NBP is better with the
comparison to the previous year

Profitability Ratio

Profitability analysis of a firm indicates the overall efficiently of the management. Without
profit a company can not attract the outside capital. Profitability analysis includes:

 Return on total assets


 Return on-equity
 Return on investment
Return on Asset
Net Profit after Tax
Total Assets
= × 100

Year 2014 (000) 2015 (000)

Net Profit after Tax 1545859 18211846

Total Assets 817758326 94791919

Return 1.89% 1.92%

Return on Equity
Net Profit after Tax
Equity
× 100

Return on Asset Return on Asset Return on Asset

Net Profit after Tax 15458590 18211846

Equity 81367002 94791919

Return 18.99% 19.21%

Return on Investment

Net Profit after Tax


Investment
× 100

Year 2014 (000) 2015 (000)

Net Profit after Tax 15458590 18211846

Investment 170822491 217642822

Return 9.04% 8.36%


Overall Comments

Profitability analysis shows the entire performance of a business and if we study the
profitability trend of bank then it will clear to us that it showing a positive trend. Net profit
after tax is increased as compare to previous year, due to it return on assets, equity and
investment is increasing. Not only overall profit is increasing but also average profit of all the
branches is increasing. Bank interest income is also increasing due to more advances in this
year. This year bank total deposits are also increased and that’s why interest expenses are
showing up ward trend.

Investors’ Analysis

Investor analysis or market analysis are related to firm market valve, as measure by its current
share price to certain accounting values. Investor analysis includes:

 Earning per share


 P/E ratio
 Dividend yield ratio
 Dividend payout ratio
 Break up value/Book value per share

Earning Per Share

Net Profit after Tax


No. of Shares

Year 2014 2015

Net Profit after Tax 15458590 18211846

No. of Shares 122873.301 147447.97

Earning 125.80 123.51


Price Earning Ratio MP Per Share
EPS

Year 2014 20015

MP Per Share 285 235

EPS 125.80 123.51

Ratio 2.27 1.90

Dividend Yield Ratio


DPS
MV Per Share

Year 2014 2015

DPS 7.5 6.5

MV Per Share 285 235

Ratio 0.03 0.03

Dividend Payout Ratio

DPS
EPS
× 100

Year 2014 2015

DPS 7.5 6.5

EPS 125.80 123.51


Ratio 5.96 5.26

Book Value Per Share

Equity
No. of Shares

Year 2014 2015

equity 28910798 33445309

No. of Shares 122873.301 147447.97

ratio 235.28 226.82

%age of Retained Earning

= 100 – Dividend Payout Ratio

Year 2014 2015

Dividend payout ratio 6.9735 10.4

ratio 93.03% 89.6%

Overall Comments

NBP has also has good investment opportunities for the investors. This bank has more
attraction for investors as compare to previous year. Earning per share is increased due to
increase in profit. Book value and market valve of one share in also increased as compare to
2004. Only dividend payout ratio is decreased fewer dividends but it is also in favor of investors
because it will increase wealth of shareholders and ultimate benefit to investors.

Bank Specialized Ratio

Bank ratio analysis is little bit different from other organizations and if we want to see the real
picture of a bank we have to focus on given special ratios.

 Earning assets to total assets


 Return on earning assets
 Net margin to earning assets
Earning Asset to Total Asset

Earning Assets * 100


Total Assets

Year 2014 (000) 2015 (000)

earning assets 497,067,485 546,825,510

totel assets 817758326 944232762

ratio 60.78% 57.91%

Comments

The efficiency of the banking firm is measured by its ability to utilize its assets in a manner
that they could be profitable for the firm. Bank earning assets are increasing as compare to last
year but it is just a little bit increase. Advances of bank are increasing and investment as
compare to 2004 is also increased. Lending to financial institutions is also very well. Balance
with other banks is not desirable this year but overall earning assets showing satisfactory
position in 2005.
SWOT analysis:
SWOT analysis is that the Strength, Weakness, Opportunity, Threats

And the detail of these is as follow:

Strength:

 Custody of Govt

The national bank f pakistan is the custodian of govt and this is the big achievement or strength
of the NBP that have acustody of govt of Pakistan.

 agent of State Bank of Pakistan

The strength of NBP is that the work on the behalf of state bank of pakistan. NBP is the working
as an agent of SBP. and NBP follow all the rules and regulation of the state Bank of pakistan.
And they operate where SBP have no branch. So that is a big strength of the NBP.

 Old and sound financial institution

The national bank f pakistan is the old and sound financial institution that provides there loan
to the peoples and the business man. NBP also provides the fund to the govt agencies.

 Vast network

NBP have a vast network because the NBP only the bank that have the Govt custody and
peoples have more trust upon the NBP so that they have a vast network.
 western Union Facility

National bank f pakistan is only the one bank that gives the western union facility to their
customers. And the western union facility is that the money is transfer to Pakistan from abroad.
So there is the big strength of the NBP.

 Job security

NBP also provides the job security to their customers by giving the rewards incentive for there
hard work and honest.

 Customer satisfaction

Customer also the satisfy from the NBP because they think that have no chances for the frauds
because the NBP is hew bank of govt so that people are more satisfy from the NBP.

 Online banking

Online banking also strength of National bank f pakistan because it has more than 200 branches
is online. It helps the fast service to their customers and clients and we also check the our
account balances and transaction that we done in just at one key press.

 Rules and regulation

The employee of the NBP has strict rules peoples and they follow the rules that the bank
imposed upon him so that the output of the bank increase.

 Product and services

The NBP also provides the many product and services for their customer satisfaction.

 More deposit

The NBP also have a many more deposit for their customers. The customer of NBP also deposit
the other account balance.

 Weakness:

 Poor Dealing

The employee of the NBP thinks that our job is secure so that they don’t pay the full attention
and they don’t deal with the peoples so that they have poor deals.

 Lack of Computerized Network

The NBP have low computerized system and network. The NBP use the online but in many
time the online destroy so that peoples wait for the online they waist many more time so0 that
peoples cant again visit the NBP so there is the major weakness of the NBP.

 Political pressure

The NBP have a govt bank and also have a govt pressure or political pressure so that they
provides the loan under the pressure so that they have a bad effect upon the banking sector

 Lack of online Branches

Online work in now a daysis become very popular but National bank f pakistan has limited
online branches so that there is the also the week point of the NBP sector.

 Lack of Advertisement of Product

Lack of modern financial product, the natsional bank of Pakistan falls far behind when
innovative products and new schemes are considered. There have no proper system for
marketing and advertisement of products.

 Lack of IT infrastructure

The Lack of NBP IT infrastructure. and some time IT serves is hanged so that NBP could not
provide the exact information to their customer and clients on time.
 Favoritism

The NBP employee has more favoritism. And the customer doesn’t like the
favoritism so that they don’t like the NBP.

 Decision making

The NBP is the govt bank so that the peoples are not more active so that the decision making
of the NBP is too late and this is the big weakness for the NBP.

 Opportunities:

 Growing Banking System

Nowdays banking system is growing speedily so national bank f pakistan has opportunities to
apply advance technical standard and more contributeto the peoples and market.

 Trust Due to Govt. Bank

National bank f pakistan has more trust able due to govt bank so it has a opportunity to improve
self and increase the market share among the other banks.

 Economic Activities

In these days the economic and the commerce activities increase and national bank
f pakistan spread their branches in over all the Pakistan and they encourage the
commerce and trade so this is the big opportunity for the national bank f pakistan.

 Electronic Banking

In these days world become a global village due to the advancement and new technology. And
if the national bank f pakistan uses the new and electronic banking then they become a well
bank and the more market shares in the banking.
 Marketing Plan

The national bank f pakistan Develop organize the aggressive marketing strategy for promotion
the bank and there products. they Can lunch a marketing plan and offer a new products and
innovative for capture the business market from other banks.

 Increase Business

The national bank f pakistan has a vast network and also the govt bank. And they operate in
over all the Pakistan and in other many country and they have a ability to increase there network
and business due to their govt banking and also the agent of state bank of Pakistan.

Threats

 Number of Commercial Bank

Number of private and commercial banks are opened in the country, operating their business
and also provide the same facilities as a national bank f pakistan and product that customer
which provide bynational bank f pakistan, so It is threat for national bank f pakistan.

 Competition with other Banks

There are the many banks in the market and they also provide the same facilities. And have a
number of competitors in the market so that the competition is so much and there are also the
threats for the national bank f pakistan.

 Political Influence

The national bank f pakistan is the bank of govt and the political party influences the bank and
there is the bad impact upon the banking sector. But in other hand the private banking have no
political influence. So that there is the threats for the national bank f pakistan.

 Customer Satisfaction
Customer satisfaction is very important for business but in national bank f pakistan but the
employee of national bank f pakistan think that we are permanent employee and they don’t try
to satisfy there customers and have no proper system for their employee complaints.

 High Interest Rates

National bank f pakistan receives a high interest rate.and other private banks offer lower
interest rates. Interest rates offered by national bank f pakistan like interest on loan. Extra serves
charges and other bank have low rate, and peoples convert from national bank f pakistan to
private banks.
Recommendations
The global economic environment has changed, creating challenges and opportunities for
policy-makers in the world. Privatization has emerged as a powerful tool for transformation,
which is being recognized as a key element for economic recovery. Being one of the countries
themselves and the rest of the world. Now there is a greater awareness that all countries in an
interdependent world singles win if these countries become positively contribute to the growth
of the world economy as a whole. Banks play a very important role in the economic growth of
the countries. N.B.P. No doubt a positive contributor in this regard, but I think that there are
some points through the adoption of which can be more effective and efficient. These points
are as follows:
In spite of the NBP listed in the top ten most banks in the global equity and assets as well as
wisdom, and this is the only bank that got "AAA" from PACRA. But for further improvement
in the various sectors on my recommendations to the Bank as follows:

Satisfied employees:

Link performance bonus should be made strong, as they say, "Happy employees delivers more
than it receives from the organization." Pakistani bank should also try to make their employees
happier. There is an urgent need to rebuild their personnel policies. The choice must be made
through newspaper ads. In this way it can be formulated more intelligent and efficient staff and
qualified.

Adoption of new technologies:

It is recommended that the NBP should go computing instead of manual labor, which is very
slow and time consuming process. NBP in this era so there is a partially computerized system
where all other new competitor banks are now going about banking services on-line.

Government support:

the government. You should take great attention to the recovery of bad debts, which could
improve its financial position.

Borrower while lending the investigation:

In the case of giving loans, it is necessary to verify the reputation of customers towards
repayment of loans. The bank should not give money to those people who are addicted to
reschedule loans because of political influences. Instead, provide loans to such persons, and
must be the promotion of loans to businesses and industries with good reputation and a good
track record of repayment of loans.

Proper training arrangement.

Along with the officers, and must also religious training for staff given. Because NBP is run
on a manual system and train their employees in the efficiency of their work directly to
improve. And to the current training program for its officers to be improved, as this program
instead of improving the efficiency of the officers is just the burden of the bank in the form of
T.A. Heavy, D.A. And cost.

Improve the working environment:

Must improve working conditions for employees. The bank will definitely get more benefits
after some spending on working conditions as it improves efficiency and productivity of
employees. There must be a friendly environment among all employees as it boosts confidence
and sincerity.

Promotion on merit:

It is mostly due to climb to no avail deterioration in efficiency. So it must be granted promotions


based on merit and also when they are due.

Staff behavior:

We should pay special attention to the behavior of staff towards customers, and the customer
is the most important person to any bank.

Reducing political influence:

Political is also one major issue in almost every branch of the NBP. It should eliminate political
influences in the bank.

Decision Support

It should be a transfer of power to the staff of the average level of decision-making in the sport.
This will reduce both cost and time.

Increased expense limits


Leaders should be increased to reduce branch of expenses to achieve the necessary personnel
Relations expenses.

Conclusion

National bank f pakistan is the nationalized bank of the Pakistan. National bank f pakistan
additionally the specialist of state bank of Pakistan. And furthermore act as a specialist in the
of SBP in a Pakistan. It has been pronounced "bank of the year 2005". General advance and
battles is appraisable of this bank. In any case, it has some week focuses that may bring about
the genuine and compelling issues of this bank. It ought to give the consideration towards the
HR bureau of Bank and furthermore the client administrations. It has the enormous segment of
advantages and value which demonstrates the trust of the speculators and furthermore the better
state of the bank. It likewise has the edge of more number of branch's system in the nation as
well as the traverse the whole world. It has the edge of country's bank and part of items
moreover. On the off chance that it come over the HR office insufficiencies and give the
inclination, it will develop and rise.

Glossary

Bank:

Bank is an organization which gets stores and advances and spread between the stores and
advances is known as the benefit of the bank.

Monetary certificate:

A non-enthusiasm bearing promissory note of a Federal Reserve Bank which is payable to the
carrier on request and can be utilized as money.

Bank compromise:
The way toward modifying a record adjust revealed by a bank to reflect exchanges that have
happened since the detailing date.

Keeping money:

Keeping money implies the tolerant fro the reason for loaning or contributing of stores of cash
from the general population repayable popular or generally and pull back capable with check,
draft arrange or something else.

Money save:

Money saves basically implies the money that is held by bank at a specific minute.

Check:

A check (or check - USA) is a debatable instrument[1] educating a monetary foundation to pay
a particular measure of a particular money from a particular request account held in the
producer/contributor's name with that establishment. Both the producer and payee might be
common people or lawful elements.

Business Bank:

Business bank implies any bank who takes the exercises of managing an account to gain the
benefit is called business bank.

Charge card:

Which is issued by the bank to client to make the exchanges on layaway premise.

Plastic:

It works simply like as charge card however on money premise. It implies the card which is
issued by the bank to the customer up to the sum which customer has as trade out the ledger.

Request advance:

An advance which is repayable on request (i.e. without earlier notice), as opposed to on a


particular date.

Store:

Cash moved into a client's record at a money related establishment


E-Banking:

Keeping money through electronically/electronic Channels. On the web and versatile is


conceivable because of E-Banking.

Back:

Each one of those exercises which need to do with the arrangements and administration of
assets for the tasteful lead of business."

Hypothecation:

At the point when moveable property/merchandise are accused of the measure of obligation
however neither the proprietorship nor the ownership is passed to the bank. It is said to be
hypothecated. By righteousness of letter of hypothecation bank can claim hypothecated
merchandise if there should arise an occurrence of default of the borrower.

Letter of credit:

L/C. A coupling archive that a purchaser can ask for from his bank with a specific end goal to
ensure that the installment for products will be exchanged to the dealer.

NIFT:

It remains for "National Institution for Facilitation Technologies". It is the innovation which is
utilized for freedom inside the nation.

Seaward saving money unit:

Branch of bank over the limit.

Overdraft:

The sum by which withdrawals surpass stores or the expansion of credit by a loaning
establishment to take into consideration such a circumstance.

Running Finance:

The fund sort in which markup is charged on the sum which the borrower utilize. Furthermore,
on outstanding sum which borrower has in the financial balance, markup is not charged.

Quick:
It remains for "Society for Worldwide Inter bank Financial Transactions". It is the innovation
which is utilized to exchange the sum cross the limit.

Term store:

Investment account or CD held in a monetary establishment, for the most part a bank, for a
fixed term or with the understanding that the client can pull back just by giving early
notification. It is additionally called time store.

Term Finance:

The back sort in which markup is charged overall sum. It is immaterial that whether borrower
utilize the segment of the entire back sum or entire fund sum.

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