INTERNSHIP REPORT SUBMITTED TO: Department Of Business Administration PREPARD BY

Student Name Roll No. ID Program Session

Shakeela Sarwar 083/Regular MBA MBA(Human Resource Management) 2009-2011

Final Report Date 19-09-2011

Pre face
In order to be able to crumble with altering environment it is necessary to have some practical experience. As the students of MBA we have to pass through a series of managerial techniques. During this practical course we are provided with an opportunity to learn that how the theoretical knowledge can be implemented in practical ground. I was selected to do my internship in NIB Bank of Pakistan Main Khan Road Branch Sargodha. I worked there for six weeks & it gave me a greater practical knowledge about the operations of a bank.

Dedicated To Hazrat Muhammad (P.B.U.H) and my beloved parents and teachers who inspired us to higher ideas of life.

Acknowledgement
All praises are for Allah almighty that has bestowed upon human being the crown of creation and has endowed him with knowledge and wisdom. After Allah, is the last prophet Mohammed (SAW) who brought for us revelation and unlimited knowledge and civilized the barbarian human being. Although this report base only my name but numerous people were very important to the development of this report without the support of them I could never successfully completed report.

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Introduction of industry

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01: Introduction of industry:

What is bank?
Bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:

A central bank circulates money on behalf of a government and acts as its monetary authority by implementing monetary policy, which regulates the money supply. A commercial bank accepts deposits and pools those funds to provide credit, either directly by lending, or indirectly by investing through the capital markets. Within the global financial markets, these institutions connect market participants with capital deficits (borrowers) to market participants with capital surpluses (investors and lenders) by transferring funds from those parties who have surplus funds to invest (financial assets) to those parties who borrow funds to invest in real assets. A savings bank (known as a "building society" in the United Kingdom) is similar to a savings and loan association (S&L). They can either be stockholder owned or mutually owned, in which case they are permitted to only borrow from members of the financial cooperative. The asset structure of savings banks and savings and loan associations is similar, with residential mortgage loans providing the principal assets of the institution's portfolio.

Because of the important role depository institutions play in the financial system, the banking industry is generally regulated with government restrictions on financial activities by banks varied over time and by location. Current global bank capital requirements are referred to as Basel II. In some countries, such as Germany, banks have historically owned major stakes in industrial companies, while in other countries, such as the United States, banks have traditionally been prohibited from owning nonfinancial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the "keiretsu". In Iceland, banks followed international standards of regulation prior to the recent global financial crisis that began in 2007.

Types of Banks: Types of retail banks

1. Commercial bank 2. Community banks 3. Community development banks 4. Credit unions 5. Postal savings banks 6. Private banks 7. Offshore banks 8. Savings bank 9. Building societies and Landesbanks 10. Ethical banks 11. Direct or Internet-Only bank

Types of investment banks

1. Investment banks "underwrite" 2. Merchant banks

Both combined
1. Universal banks

Other types of banks

1. Central banks 2. Islamic banks

Types of retail banks

1. Commercial bank
The term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.

2. Community banks
Community bank locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners.

3. Community development banks

Community development bank regulated banks that provide financial services and credit to under-served markets or populations.

4. Credit unions
Credit union not-for-profit cooperatives owned by the depositors and often offering rates more favorable than for-profit banks. Typically, membership is restricted to employees of a particular company, residents of a defined neighborhood, members of a certain labor union or religious organizations, and their immediate families.

5. Postal savings banks

Savings banks associated with national postal systems.

6. Private banks
Banks that manage the assets of high net worth individuals. Historically a minimum of USD 1 million was required to open an account; however, over the last years many private banks have lowered their entry hurdles to USD 250,000 for private investors

7. Offshore banks
Banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks

8. Savings bank
In Europe, savings banks took their roots in the 19th or sometimes even in the 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralized distribution network, providing local and regional outreachand by their socially responsible approach to business and society.

9. Building societies and Landesbanks

Institutions that conduct retail banking

10.

Ethical banks

Banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments

11.

Direct or Internet-Only bank

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This is a banking operation without any physical bank branches, conceived and implemented wholly with networked computers.

Types of investment banks

1. Investment banks "underwrite"
(Guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advice corporations on capital market activities such as mergers and acquisitions.

2. Merchant banks
Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.

Both combined
1. Universal banks
More commonly known as financial services companies, engage in several of these activities. These big banks are very diversified groups that, among other services, also distribute insurance hence the term banc assurance, a portmanteau word combining "banque or bank" and "assurance", signifying that both banking and insurance are provided by the same corporate entity

Other types of banks

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1. Central banks
Central bank is normally government-owned and charged with quasiregulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis

2. Islamic banks
Adhere to the concepts of Islamic law. This form of banking revolves around several well-established principles based on Islamic canons. All banking activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees on the financing facilities that it extends to customers.

02. An over view of organization:

History of NIB
NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was incorporated in March 2003 as a public limited company. It started operations in October 2003 when all assets, liabilities, rights and obligations of the former National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC Bank were amalgamated with and into the Bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of Credit Agricole Indosuez were also amalgamated with and into NIB. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments. This shareholding was further enhanced to over 70% in June '05 following an increase in NIB's paid up capital to Rs 3.4 bn. NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007, with a corresponding increase in its assets and deposits base.

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NIB Bank's vision is to rank amongst the top 5 banks in the country. Therefore towards the end of June 2007 it acquired majority shares of PICIC with the aim of merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited (PCBL) into NIB. The acquisition was financed through the country's largest private sector rights issue, with resultant increase in NIB's paid up capital to Rs.22.0 bn. The PICIC acquisition bought with it another subsidiary "PICIC AMC" and an affiliate "PICIC Insurance". The legal merger of PICIC & PCBL into NIB took place on December 31, 2007, once all regulatory approvals were in place. NIB Bank continues to be led by Khawaja Iqbal Hassan, supported by four business heads and ten business enabling function heads. The merger resulted in a vastly expanded branch network and total assets of Rs 176.6 bn on merger date. NIB has the highest paid up capital of Rs. 40.4 bn amongst all banks in Pakistan. Merger synergies include lower cost deposits, enhanced customer service delivery channels and overall improved efficiencies. These help provide a competitive edge in the face of increasing competition in the banking sector. Temasek Holdings continues to be the largest single investor in NIB Bank with approximately 74% shareholding. The powerful franchise of the three merged entities has been brought together to form a much larger and stronger bank to complete in the market place.

Management Profile President

Khawaja Iqbal Hassan: President and CEO Khawaja Iqbal Hassan is the President and Chief Executive Officer of NIB Bank. NIB Bank is the fastest growing commercial bank in Pakistan and has recently acquired controlling shares in Pakistan Industrial Credit and Investment Corporation (PICIC) and PICIC Commercial Bank. Mr. Iqbal Hassan is the founder of NIB Bank, which

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he created in 2003 through the merger of Pakistans then largest leasing company, NDLC, and the domestic branches of IFIC Bank. This was followed by an acquisition of the domestic branches of the French bank, Credit Agricole Indosuez. Mr. Iqbal Hassan obtained his Bachelor of Science degree in Business Administration from the University of San Francisco in 1980 from where he graduated with academic honors and majored in Finance and Marketing. He also holds a degree in Accountancy from the City of London Polytechnic. In addition to his contributions to the development of the financial and banking sectors in Pakistan Mr. Iqbal Hassan serves/has served as a Board member of the following companies: NIB Bank Limited. PICIC. PICIC Commercial Bank. PICIC Insurance. National Fullerton Asset Management Company Limited. Civil Aviation Authority of Pakistan. Pakistan Steel Mills Limited. Habib Bank Limited. Global Securities Pakistan Limited. Citicorp Investment Bank Pakistan Limited. The Pakistan Fund. The Central Depository Company of Pakistan Limited

In view of his contributions to the field of banking and finance, Mr. Iqbal Hassan was conferred the Sitara-i-Imtiaz, Pakistans highest civilian award in 2007.

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Board of Directors
Teo Cheng San, Roland Syed Aamir Zahidi Tejpal Singh Hora Asif Jooma Mr. Muhammad Abdullah Yusuf Mr. Najmus Saquib Hameed Khawaja Iqbal Hassan Director and Chairman Director Director Director Director Director Director and President / CEO

Vision and Mission Our Mission:

To improve the quality of life for millions

Our Core Purpose:

Enabling success; realizing dreams

Our Vision:
To be the most admired Financial Institution in Pakistan

Our Values:

PASSION RESPECT INTEGRITY EXCELLENCE FAIRNESS

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1. Passion:
I am driven I am committed I am determined I believe in what I do I embrace life

2. Respect
I appreciate different viewpoints I am receptive to the diversity of ideas I treat others as I would want to be treated I look after the community in which we live and work I contribute to the care and comfort of those around me

3. Behaviors: Integrity
I do what I say I am honest and forthright I never compromise my values I am open and honest in all my dealings I have the courage to stand up for what I believe to be true

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4. Excellence
I strive for better I exceed expectations I am constantly improving I always try to get it right the first time I produce error free, superior quality work

5. Fairness
I am impartial I judge on merit I dont expect favors I listen to both sides I reward what you do not who you are

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