Submitted To: Sir Imran Hanif: Hassaan Asif

Submitted to:
Sir Imran Hanif
Submitted By:
Hassaan Asif
Roll No: 17
BBA (Banking and Finance)
National Bank Of Pakistan
INTRODUCTION OF NATIONAL BANK

PRESENT STATUS AND HISTORY
National Bank of Islamic Republic of Pakistan maintain its position as Pakistanis
premier Bank determined to line higher standards of achievements.
It is the key business partner for the government of Moslem Republic of Asian
country with special stress on fostering Pakistanis process through aggressive and
balanced disposition policies, technologically homeward branches.
The commercial bank of Islamic Republic of Islamic Republic of Pakistan came

into existence on twentieth Gregorian calendar month 1949 beneath the commercial
bank of Pakistan Ordinance No.21 of 1949.It is a public bank and functions like
alternative industrial banks.
Therefore it receives funds from the depositors and provides loans/credit facilities in
all sectors including trade, industry and agriculture.
It conjointly functions as Associate in Nursing agent of the financial organisation and
operates the treasuries at places wherever no branch of banking concern of Islamic
Republic of Pakistan exists.
The commercial bank of Asian country was additionally nationalized, along with
other banks, in January 1974.
The Bank of Bahawalpur was conjointly incorporate into this Bank.

MANAGEMENT
An government Board composed of six Senior governments of the Bank and
therefore the President WHO is additionally the Chief Executive supervises the
affairs and business of the Bank.
CAPITAL
The licensed capital of the Bank is Rs.2500 million divided into one hundred million
common shares of Rs.10 each.
After nationalization, all the shares command by persons aside from the federal or
companies i.e, owned and controlled by the Federal Government were considered as
transferred and vested
in the Government.
BRANCHES
The Bank had a network of 1531branches in the country and 28 branches in foreign
countries. These countries are as follows:
1)- United States of America
2)- United Kingdom
3)- France
4)- Germany
5)- Africa, Middle East Region
An Internship Report Institute of Banking and Finance

6)- Bahrain
7)- Asia Pacific Region
8)- Japan
9)- Republic of Korea
10)- Central Asian States
11)- Bangladesh
12)-Peoples Republic of China
13)-Pakistan.
ACTIVITIES AND ACHIEVEMENTS
FOREIGN EXCHANGE
The branches of the Bank in foreign countries handled the export business and
import business.
National Bank of Islamic Republic of Pakistan started a venture unitedly with the
Bank of Al-Jazira.
Its head workplace is at Jed'dah and conjointly includes twelve alternative branches.
National Bank of Moslem Republic of Asian country as a trustee of the
National fund restricted, and conjointly operates a subsidiary for the promotion of
agricultural production named the National
Agriculture restricted.
MISSION/OBJECTIVES OF NATIONAL BANK OF PAKISTAN
MISSION STATEMENT
To make the Bank comparable and competitive with all International standards in
performing arts, quality of operations, quality of staff, quality of financial strength
and quality of products and services.
Objectives & missions are the means to reach some beneficial end.
No one are able to do any target before setting it foremost.
So within the same means commercial bank has some objectives, which it is trying to
achieve.
Following are some of them:
1)_ To maximize profit
2)_ To provide all sort of banking services.
3)_ To serve the humanity altogether elements of the globe through its network of
branches throughout the globe.
4)_ To satisfy customers on the far side their expectations by

providing personalised effective services in best manner.
5)_ To serve Asian country higher so as to provide socio-economic uplift.
6)_ To provide the maximum profit to depositors by achieving sound profitable

growth.
7)_ To develop & enhance its system & technology.
8)_ To train its staff.

9)_ Providing information & advice to its customers.
10)_ Providing facilities of foreign currency accounts.
SERVICES PROVIDED NATIONAL BANK OF PAKISTAN
National Bank of Islamic Republic of Pakistan provides following main services to
its customers:
It acts like a financial intermediary between importers and exporters.
It provides services in share of deposits, advances guarantees etc.
Full and efficient services of foreign trade.

Better system through that statement of accounts of a consumer can
be created chop-chop

ORGANIZATION CHART OF NATIONAL BANK OF PAKISTA
DESIGNATIONS FO HIGHER LEVEL OFFICERS
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT

GRADE 22
EXECUTIVE VICE PRESIDENT

GRADE 21
VICE PRESIDENT
GRADE 20
ASSISTANT VICE PRESIDENT

GRADE 19
GRADE I OFFICER
GRADE 18
GRADE II OFFICER
GRADE 17
GRADE III OFFICER

(GRADE 16)

PRODUCT / SERVICE MIX OF NATIONAL BANK

Product of a bank include all those services, which a customer can use effectively in
has general and business live.
NBP Main Branch, Lahore offer a wide range of banking services to public and
private sector corporations, partnership, individuals and others.
However, there area unit some basic services that NBP at this time offered to his
customers include:
• Receipts f customer deposits.

• Collection of his cheques drawn on other banks.
• Making payments through cheques drawn on it.
• Making remittances
• Foreign trade services.
At present NBP providing the subsequent monetary services and
investments choices to customers.
1- Deposits
2- Advances
3- Foreign Services
DEPOSITS
To receive deposits may be a basic perform of all business banks.
Commercial banks don't receive these deposits for save keeping purpose solely.
But they accept deposits as debts. When a bank receives a deposit from a customer
becomes the creditor and the bank a debtor. When the bank receives the amount of
deposit as a debtor, it becomes the owner of it. It may, therefore, use it as it deems
appropriate. But there is an implicit agreement that the amount owned would be paid
back by the bank to depositor n demand or often a specified time.
Deposits area unit the lifeblood of a bank and their classification is predicated on
the period and purpose that the deposits area unit to be unbroken at the bank
before the
depositors can withdraw them. At present NBP accepts deposits in bother local &
foreign currencies and provides a variety of accounts where these sums are put in at
the desire of the customers.
LOCAL CURRENCY DEPOSITS
In local currency (PkR) the following type of accounts are available at the bank
1-Cruuent Account
2-Saving A/c
3-Short term deposits
4-Fixed deposit receipts
A brief clarification of the on top of explicit accounts is given below:

CURRENT ACCOUNT
These area unit owed to the client whenever they're demanded.
The bank treats these deposits as current liabilities.
No profit is given on these accounts and there's no restriction of minimum balance
to be unbroken in these accounts.
SAVING ACCOUNT
In such forms of account, the depositors are normally allowed to withdraw a limited
amount of money only twice a week.
FIXED DEPOSIT RECEIPTS

In these accounts the amounts area unit deposited for mounted amount which
can be one month, 3 months,6 months and 1 year.
SHORT TERM DEPOSITS

In these accounts the amounts area unit deposited
for mounted amount however shorter than that of mounteddeposit receipts, which
may be 7 days ,and 30 days.
FOREIGN CURRENCY DEPOSITS

At present NBP Main Branch accepts US$, GBR, YEN and DM in shape of foreign
currency deposits.
For these foreign currency deposits bank has offered the subsequent accounts.
1-Foreign Currency Accounts.

2-Foreign Currency Saving Accounts.
A brief description of on top of explicit accounts is given below.
i- FOREIGN CURRENCY CURRENT ACCOUNTS

In these accounts depositors will deposit a total of cash in any of the on top
of mentioned currencies.
The investor also can withdraw any quantity subject to he accessibility of the
quantity.
No profit is given on these accounts and no restriction as per the minimum
balance needed.
ii-FOREIGN CURRENCY SAVING ACCOUNTS

NBP pays the interest that is earned on the sums available in the accounts by making
investments.
ADVANCES

Advances area unit the main supply of earning financial

gain for business banks; it's the interest charged on the cash lend to customers.
Bank advances to customers area unit created either by means of loan or by order
of payment on accounting.
At present NBP provides short term loans in addition as long run loans.
FOREIGN SERVICES
Following is that the list of major foreign services provided by NBP to its customers
:e .g:
a- Documentary Letter of Credit

b- Bills of Negotiation
c- Foreign Services
d- Bills for collection
A brief description on of on top of explicit services is given under;
DOCUMENTARY LETTER OF CREDIT

A documentary letter of credit may be defined as an authority issued by the opening
bank on behalf of the importer in favor of the exporter with the stipulation that
the drafts drawn there below are punctually honored on condition that the terms
and conditions as mentioned there in area unit punctually compiled with .
With regard to the documentary credit the subsequent forms of documentary letter
of credit area unit offered by NBP;
 Revocable LC
 Irrevocable LC
 Confirmed LC
 Transferable LC
 Back to back LC
 Stand by LC
 Sight LC
 Usance LC
BILLS FOR NEGOTIATION
In some cases the exporter is not willing to wait for the proceeds of collection to be
remitted. In such cases exporter requests the Bank to negotiate the bills i.e. he sends
the documents to Bank. In this case Bank examines the documents and arranges them
with the requirements mentioned in the Letter of Credit. When bank satisfied it pays
to the exporter. Now Bank has the right to collect the proceeds on his own behalf
from the importer’s Bank

NBP performs the functions of both the exporter’s and the importer’s Bank as per its
customer’s status.
BILLS FOR COLLECTION
The exporter’s and bank receives the documents from the exporter, examines and
dispatches them to the importer,s bank.
The businessperson, s bank confirms these, as per the requirements stated in the
letter of credit.
If founds correct gets the amount from the customer, advice the exporter ,s bank
about the receipt of payment and in the end makes the payment to the exporters bank.
REMITTANCE
It includes local and foreign currency fund transfer.
NBP additionally give the ability to its customers in remitting funds from one
place to a different place.
The remittance (between two countries). At present bank provides
the following instrument that facilitates the transfer of
funds.
 TT ( telegraphic Transfer)
 DD (Demand Draft)
 PO (Pay Order)
These will be discussed in detail in the remittance
department.
UNMATCHED BANKING FACILITIES
 Deposit security, Guaranteed by Government of Pakistan
 Highest rates of return to attract the savings.
 Lowest rates on exports and other borrowings.
 Largest contribution towards Government and Semi- Government Requirements.
 Agent of the State Bank Of Pakistan handling Treasury Functions, receipts of
Taxes & other Revenues.
 Handling of salaries and pensions of federal/ provincial employees and defence
personnel.
 Utility Bills collections.
 Haj arrangements.

 Sale and encashment of Prize Bonds through its 266 authorized branches.
 Sale and encashment of Defence Savings and Special Savings Certificates.
 Safe Deposit Lockers for customers.
 Rational Human Resource Management.
CASH LINK
NBP ATM SERVICES FOR YOUR CONVENIENCE
SERVICES AVAILABLE ON NBP ATM’S

 Cash withdrawal according to your cyclic limit.
 Transfer of funds between PLS Savings Account and Current Account of the same
customer through the same ATM Card.
 Account Balance Inquiry.
 Instant mini- statement of account listing the last 15 transactions in account.
Request for a new Cheque book which might be collected by the customer from
the branch.
HOW MUCH CASH CAN BE WITHDRAWN

There is a 24 hours cyclic cash withdrawal limit imposed on all ATM cards.
Withdrawal limits depend on the type of customers.
PIN (PERSONAL IDENTIFICATION NUMBER) MAILER

A pin mailer issued to the ATM card holders carries the PIN number in a sealed
envelope. Card holder is required to keep the PIN number in a safe place as all the
operation on the ATM are carried out through the same.

CHAPTER # 4
ACCOUNT OPENING AND CLOSING DEPARTMENT

Basically function of A/c opening & closing in NBP is performed under Accounts
department but I am discussing it with separate heading for better understanding.
Firstly all types of Accounts which can be opened in NBP has been described:
TYPES OF ACCOUNTS

I) Current account
II) Saving account
Brief explanation of these accounts is as follows:
CURRENT ACCOUNTS
Current A/c is basically used to meet the daily transactions. Current account
provides safety to the customer’s money, gives the advantage for paying debts by the
convenient and safe means of sending cheques through the post thus avoiding the trouble
and loss that units in PKR, Us$ GBP and DM.
SAVING ACCOUNT
In case of saving accounts, account holder gets profit. There is a time limit for
drawing cash; customer cannot draw money before a certain time.
In NBP saving a/c is used as current a/c & there is no main difference between
current & saving account except profit.
This account can be opened by limited company, partnership company ,club
societies & associations, joint & sole proprietorship.
HOW TO OPEN AN ACCOUNT (GENERAL)
When a person intend to open account. A card is filled & signed by customer. This card
contain:
i)- Six boxes for name.

ii)- Opening date
iii)-Special instructions
iv)-Space for first a/c No.

v)-Space for other accounts.
Following points are considered by the bank in this regard.

1)- Another account holder of the bank should properly introduce the new customer.
2)- The account holder should sign the account opening form in the presence of bank
officer and the signature is duly verified.
3)- A copy of identity Card is required by Bank.
4)- Against submission of the Bank’s prescribed application form, duly introduced in the
manner provided and on supplying such document, as may be required and account may
be opened. The Bank reserves to itself the right to refuse to open and account without
assigning any reason.
5)- Each account shall be allotted a distinct number that is to be quoted in all
correspondence with the bank relation to the account.
6)- Minimum amount for opening and continued maintenance of various types of
accounts is as follows:
Rs. US$
Current 2000 2000
Saving 500 500
The bank reserves the right to change the above mentioned minimum balance
requirement at any time without any notice.
PROCEDURE TO OPEN AN ACCOUNT
When a customer wants to open an account, the bank officer gives application
form to him. All information, which is necessary to be known by the bank, is
requirements of the application form. From also requires the essential documents to be
attached by the customer.
Following persons can open an account:

1)-Sole proprietors
2)-Private accounts (individual A/Cs)
3)-Joint account
4)-Limited Company
5)-Partnership Company
6)-Club, Society & Association
Basically following information is required:
 Name
 Address
 Telephone no.
 Currency of account
 Nature of Business
 Residential status
 Special instruction regarding the account
 Signature of the applicant
DOCUMENTS TO BE ATTACHED
Documents required to be attached are different for different categories.
1)- SOLE PROPRIETOR’S ACCOUNT
They have to submit their business registration certificate number.
2)- PRIVATE ACCOUNTS

For individual or private accounts following documents & information has to
be given:
 Name
 Residence address
 Mail address
 Foreign address

 office address & office ph. No.

 position to title
 passport or identification No/
 matrimonial status
 Date and place of birth
 Nationality
 Residence visa No.
 Name and address of other Banks in Pakistan
3)- JOINT ACCOUNT

If some one wants to open joint account the following information is needed:
- Full name
- Address
- Specimen of signatures of the joint account holders
4)- JOINT COMPANY

In this case following information & documents are required:
 Certified true copy of the Memorandum and Articles of Association of the company.
 Certified true copy of the resolution of the board of directors / managing committee /
governing body regarding conduct of the account.
 Certified list containing names and signatures of the directors / office bearers.
 Certified true copy of the certificate of incorporation or registration.
 Certified true copy of the certificate of commencement of business ( in case of public
limited companies).
 I.D. Card copy of each director
 Original is also enclosed for inspection and return
 List of persons authorized to operate on the account.

5)- PARTNERSHIP COMPANY ACCOUNT

Documents required in this case are as follows:
 Full Names
 Address
 Specimen of signatures of the partners
 Certified true copy of partnership deed
6)- SOCIETIES / CLUBS AND ASSOCIATION ACCOUNT

Documents required in this case are as follows:
 Copy of the rules certified by the president and the secretary.
 Certified copy of a resolution of the committee and the specimen signatures of the
persons authorized to sign.
OTHER FORMALITIES
The majority of the new customers are introduced either by an existing customer or by
bank staff. When the concerned officer is satisfied then he opens the account and gives an
account number that will be used in all communications with the bank in regard to the
account and when making deposits and withdrawal.
Bank has a right not to open and account without assigning any reason or to
close the account, if it is not operated in a satisfactory manner by the head office
instructions.
So, opening questionnaire for companies & business accounts includes:
 Company name
 Address
 Mail address
 Telephone, Cable & Telex
 Nature of Company

 Business registration certificate number

 Date of incorporation
 Nature of Business
 Names of main managers & director
 Names & address of parent companies
 Names & address of other banks
 And, introducer’s declaration
And opening questionnaire for private accounts includes:

 Name
 Residence address
 Mail address
 Residence telephones No.
 Foreign address
 Office address
 Office Telephone No.
 Position or Title
 Passport or identification cards No.
 Matrimonial status
 Nationality
 Residence Visa No.
 Name & address of other banks in Pakistan
 Name & address of other banks in abroad
 & Their account No.
 & Introducer’s declaration

ISSUANCE OF CHEQUE BOOK

When a customer opens an account with the bank, he is provided with cheque
book for withdrawals of account. However, the first cheque book is given to the customer
only when all the required documents are checked. A cheque book contains twenty five,
fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of
the new cheque book. This slip is duly filled and singed by the customer. The signature of
the customer is verified by the bank and new cheque book is issued to the customer and
serial numbers of the cheque are duly entered in the book of the bank. Along with the
signature, person should also write his full name & address.
Usually only one cheque book is issued at a time, however big concerns who
need a number of cheque books at a time, may ask the bank to stock as number of cheque
books in their name and to point their name on these cheque books.
Bank debits the client’s account for excise duty of Rs.2.50/- per cheque and
keeps the cheque book ready for the customer, as on his advice.
The officer keeps and maintains the cheque book register Cheque book
inventory and cheque books issued are recorded in this register. The account number for
which the cheque book is issued and the number of leaves are also recorded in this
register when the cheque book issued an entry is passed in the cheque book issue register.
THE REQUISITES OF A CHEQUE
There is no prescribed form of words or design of a cheque but in order to

fulfil the requirements the cheque must have the following:
 It must be in writing
 It must contain an order to pay and addressed a specified bank.
 The order must be unconditional
 The order must direct to pay on demand
 The sum ordered to be paid must be certain.
 The payment should be ordered to be paid to a certain person or to his order or the
bearer.
CHECKING AND PAYMENT OF CHEQUES

It is the primary function of the bank to repay the money received from his customer’s
account usually by honouring his cheques. It is a contractual obligation of a banker to
honour his customer’s cheque, if he has checked the following on a cheque:
 Name of the Bank & branch
 Amount in figure and words
 Signature of the Drawer (verification)
 Posting mark by the computer operator
 Cancellation by the authorized
 Cheque should not be damaged
 Funds must be sufficiently available
 No legal bar prohibiting payment.
STOPPING THE PAYMENT OF CASH ON PRESENTATION OF CHEQUE
The payment of cheque is stopped dishonored on the following grounds:

 Effects not yet cleared ,then request to present again.
 Irregularity endorsed
 Drawer’s signatures differ
 Payee’s endorsement requires bank’s guarantee
 Alteration requires full signatures
 Cheque is post dated
 Cheque is without date
 Amount in figures and word differs
 Crossed cheque must be presented through the bank
 Payment stopped by the drawer.

HOW TO CLOSE AN ACCOUNT
The account can be closed by the customer. The customer is required to

submit and application for closing the account. Then the account is closed out and his
balance is paid to him. Cheque book is returned back to bank and the officer cancel and
the remaining cheques in cheque book.

CHAPTER # 5
CASH DEALING DEPARTMENT
Cash department of NBP is given the complete responsibility of handling all

receipts & disbursement of cash. As a result of transaction in both local & foreign
currencies & near cash items such as traveler cheque etc ( when they are issued against
cash).
As a consequence it is also responsible for the book keeping of these
transactions & the safe custody of cash & near cash securities of NBP.
a)- Cash receipts for receive deposits.
b)- Encashment of cheque
Cash department of NBP is a separate close part covered with glasses. No one
other than cash department’s employee is allowed to enter into that area.
CASH RECEIPT
The depositor uses cheque deposit slip (or cash deposit slip) for depositing the
amount. There are two types of cash deposit slip:
a)- One for current account – holders &
b)- Other for saving account holders.
Both are in different colors for clear identification. There are two parts of cash deposits
slips:
a)- Counter foil
b)- Adjacent credit voucher.
ACCEPTANCE OF CHEQUE
The cash is paid against the cheque of the client. The following points are kept
in mind while receiving the cheque from the client.
 Cheque should be drawn on NBP.
 It should not be post dated.

 It should be bearer cheque so the word bearer should not be crossed.
 Payment is not stopped by the drawer.
 Amount in words & figure should be same.
 Alternation in date / figure / word require drawer’s full signature with signature
on the cheque.
AFFIRMATION OF SIGNATURES
After receiving the cheque the officer verifies the signature of the account
holder with the signature on the cheque. It signatures are not the same then it is returned
back otherwise forwarded to computer terminal.
COMPUTER TERMINAL PROCESS

The cheque is received in computer terminal, where the computer operator
checks the balance of the account holder. The operator also sees whether the stop
payment instructions are received from account holder or not. After considering these two
points computer operator posts the cheque in account holder ledger & returns the cheque
back to the officer.
PAYMENT OF CASH
The cheque is cancelled after posting & is returned to cashier. The cashier
enters the cheque in “cash paid register” & pays against the second signature of the
receiver on the back of the cheque.

CHAPTER # 6
CLEARING DEPARTMENT
Nearly all the banks provide a wide variety of services to their depositors. One
valuable service provided is that of clearing. Clearing department also plays an important
role in performing the activities of the bank.
The basic function of clearing department is to provide services to customers
in collection of their cheques of other banks, whether they are in city or outside the city.
The customer can get the money in his account at NBP from the cheques drawn on
another bank. The bank accepts the cheque in the clearing which it is drawn through the
clearing house i.e, State Bank of Pakistan.
CLEARING
We can define clearing as, ”the transfer of funds from one branch of bank to the other
branch of the same bank or the other bank on which the instrument is drawn, without
involving cash through “State Bank’s clearing house” or we can say in other that cheques
which can not be cashed at the ash counter of the bank.
CLEARING HOUSE
It is of the service provided by central bank i.e, State Bank of Pakistan to the
other commercial banks. SBP acts as a clearing house. A representative of each bank
represents his bank in the clearing house.
“A clearing house is an association of commercial banks set up in a given locality for the
purpose of interchange & settlement of credit claims”.

The SBP maintains the accounts of the NBP like other scheduled banks and
debits the account of the drawee bank and credits the presented bank which is NBP in
that case.
TYPES OF CHEQUE
Some specific types of cheque are being entertained in the clearing
department of NBP Main Branch, Lahore.
These types of cheque are:
1)- Local cheque
2)- Out station cheque
3)- In house cheque
1)- LOCAL CHEQUE

By local cheque we mean collection of cheque from the banks which are the
members of the clearing house and which are located within the city.
2)- OUT STATION CHEQUE

By out station cheque we mean collection of cheque from the banks which are
situated outside the city. It means that presenting bank and the bank on which the cheque
is drawn are not situated in the same city.
3)- IN HOUSE CHEQUE

In house cheque are drawn on one branch of NBP and presented to another
branch of NBP such cheques are marked with transfer stamp.
TYPES OF CLEARING
Clearing department deals with the two type of the clearance.
These are stated below:

1)- Inward clearance

2)- Outward clearance
INWARD CLEARANCE
Cheque drawn on NBP and presented to other Banks or handed over to NBP
agent in clearing house. That is inward clearance for NBP. So inward clearing results in
outflow of funds to collecting bands reducing the balance in the clearing account.
OUTWARD CLEARANCE
Similarly cheque which are drawn on other bank and presented to NB Main
branch, Lahore are known as outward clearance for NBP Main Branch. So outward
clearing results in inflow of funds from paying bank into the clearing account maintained
with clearing house increasing the balance in the clearing account.
Outward clearing thus may be:
Local clearing
Outstation clearing
Excess of outward clearing over inward clearing produces a net increase in the
clearing account balance. Excess of inward clearing over outward. Clearing produces a
net decrease in the clearing account balance. The first case is referred to as favorable
clearing & the second case as unfavorable clearing.

CHAPTER # 7
REMITTANCE DEPARTMENT
Remittance is the monitory transfer from one place to another place or from
one country to another country to fulfill the requirements of the customers by the order of
the customer.
Remittance Department at NBP Main Branch Lahore can be divided into two
sections due to its activities.
1)- Local Remittance
2)- Foreign Remittance
1)- LOCAL REMITTANCE

Local remittance section deals with remittance ( incoming and outgoing but
only in local i.e, Pakistan rupee and within Pakistan.
Local remittance include the following eight functions in NBP:
a)- Transfer through pay order
b)- Transfer through demand draft
c)- Telegraphic transfer
d)- Issuing of SBP cheques
e)- Mail transfer

f)- Local / internal transfer
g)- Preparation of balance certificates.
Chapter - 8
ACCOUNT DEPARTMENT
The main function of the accounts department of NBP is to maintain general

ledger accounts and after the business hours the function of the accounts officer is to
close books.
FUNCTIONS
There are many other important functions performed by accounts department of

NBP. So I ma going to discuss these functions in three steps:
 -General Ledger;
 -Voucher system;
 -Types of voucher used.
GENERAL LEDGER:
It is the prime record of the branch reflecting its assets and liabilities and serves as
the master control of accounting system of the branch. It consists of only those accounts,
which are authorized by the head office.
VOUCHER SYSTEM:
 Voucher is a written authorization sued in approving a transaction for

recording and payment.
 Voucher is a system, which is generally designed to provide strong internal
control over the transaction, which take place during the business hours.
 Whenever a transaction takes place in any department of the bank.
 One debit and one credit voucher is prepared. At the end of the day, these
vouchers are collected and recorded i.e.,
Debit vouchers are used in two cases:
 When ever any expense is incurred.

 When a depositor withdraws some amount from his account
The account of the customer is debited with the amount and debit voucher is
prepared.
The format of the debit voucher includes:
 -Name of branch
 -Date
 -Branch No.
 -Account No.
 -Transaction Code
 -Amount and other details (Narration)
CREDIT VOUCHERS:
There are two types of transaction in which credit vouchers are used.

 When a depositor deposits any amount in his account because the

liability of bank.
 Any income received by the bank e.g. bank draft.
Different types of credit vouchers are used.
Now in second set these three important functions of Account department of NBP
are described briefly.
1. All expenses vouchers are routed ask through Accounts Department.

2. Preparation of various statements.
3. Preparation daily activity report at the end of each day.
EXPENSE VOUCHER:
All the expense vouchers passed by each department are routed through accounts
department. These expenses include:
a) Salaries given to all employees of the bank

b) Wages
c) Rent
d) Lease installments
e) Insurance - vehicle
f) Insurance - cash
g) Utility Bills
h) Medical allowances (reimbursed)
i) Cash carrying charges etc.

SALARY STRUCTURE:
Salary included
 Bonuses
These bonuses are credited 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 is 8.3%.
 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.
3)- Preparation of Daily Activity Reports:
It is also duty of accounts department to prepare daily activity

report at the end of each day. It includes the details of the following:
A)- loans transactions

B)- general Ledger transactions
C)- Foreign currency related transactions
D)- fixed deposits transactions
All vouchers prepared by different relative departments on computer.
In third and last step the following functions of accounts department of

NBP are described as follows:
 Approval of daily expenses voucher

 SBP balance

 Tax returns
 Budgeting
 Forward Cover Fee
 Debit Balance Calculation
 Pay order/telegraphic commission transfer
 Deposit entry
 Depreciation
 Result/budget
 Head office report
 Trial balance / Fx position
 Commitment return
 Sources and uses
 Activity report
 Statistics of activity
 Monthly assets and liability
 Liquidity 1, 2, 3, 4, 5 years
 Excise duty balancing
 EOM/EOY Print files floppy
 Customer's/internal A/c statements
 Computer complete back up
 Quarterly statements size wise
 FCY interest reporting
 FCY interest checking
 Service Charges
 A/c to be dormant
 Letters to customers
 Classification of deposits
 List of deposits

 A/c opening and closing

 Staff loans
 A/c blocked and unblocked
 Monthly resident and non resident
 Zakat Calculations.
ACCOUNTING PROCEDURE IN NBP:
1. Various departments use debit and credit voucher for recording the
transactions.
2. Accounting department receives the departmental journal from the
departments to gather with all the vouchers.
3. Verify correction of total of all into departmental entries in departmental
journals.
4. Sort vouchers into general ledger a/c order debit separately from debit for
each account.
5. From departmental journals add all debits and all credits for each general
ledger account and write total for each account in relative account and extend
new balances.
6. Prove debit and credit totals to department journal total. Write total obtained
from machines list for each contingent accident in general ledger and up data
balances.
7. Date and sign general ledger and obtain signature of an officer.
8. Place general ledger includes leaf binder in chronological order.

CHAPTER # 9
MY INTERNSHIP PROGRAMME
WORK DONE BY ME AT THE BRANCH
Major activities performed during my internship program are as follows;
ACCOUNT OPENNING DEPARTMENT:
In this department, I gain the practical knowledge about opening account. 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.
 -Individual
 -Firm
 -Company
 -Trust
 -Staff
 -Others
OPENING AN ACCOUNTS:
In order to open an account, first of all the customers have to fill a form
prescribed by the bank. 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.
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.
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:
 Examining the deposit slip to ensure that the name and the account
numbers are clearly indicated.

 Counting the cash and cheques and agree the total with the amount on the
deposit slip.
 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.
 Cheques signed by directors, partners or employees of a company, drawn in
favor of them and credited in their account in the bank are to be scrutinized.
WITHDRAWALS:
Cheques can withdraw amount. The withdrawals can be made only at the branch
where the account is maintained. The officer under his full signature authorizes all cash
withdrawals. No third party withdrawal is permitted. In current account, the bank does
not offer any interest. We can deposit or withdraw any amount during banking hours.
ISSUANCE OF CHEQUE BOOK:
The accountholders request for the new cheque book by presenting the requisition
slips along with the authority letter to the concerned office. His signatures are verified
before giving him a new cheque book. The presence of the accountholders is compulsory
to get a new cheque book. But if he sends a third person to get his cheque book then the
procedure is as follows;
 An authority letter is given to the third party by the accountholders.

 The accountholders verify the signature of the third person on that authority letter.
 The bank officer gets the signature of that third person to confirm whether he is the
same to whom the accountholder has sent.
 The bank issues the new cheques book and authority letter is kept buy the bank.

CLEARING DEPARTMENT:
In this department, I have worked for two weeks. 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.
REMITTANCES DEPARTMENT:
I worked in this department for one week. This department deals in transfer of
money from one place to another or country by:
 -Demand drafts
 -Mail transfer
 -Telegraphic transfer
In this department internees are advised only to observe the working of transfer of
money from one place to another place of the country by the above modes of transferring
money. During my stay in this department I observed that how demands draft be issued.
The procedure is as follows.

First the bank receives a written request from the customer to issue a bank draft.
The written request is either in banks standard form or separate paper signed by the
applicant enclosed with cash or cheques covering the amount of the draft and other
charges of the bank.
While issuing a bank draft it is necessary that the draft should be free from
alternations. All the details must be written clearly in ink. After issuance a demand draft
it is handed over to the applicant and its advice containing the particulars of the draft is
sent to drawer branch with its necessary information and payment of the draft is make on
its presentation.
BILLS COLLECTION DEPARTMENT:
I spent one week of my training in bills collection department. Here I collected

utility bills like gas, electricity, water and telephone etc.
DETAIL OF BRACH DEPOSITS
NO. HAVE PLS SAVING ACCOUNT HOLDERS 26527

NO. OF CURRENT ACCOUNT HOLDERS 5773
NO. OF FIXED DEPOSIT ACCOUNT HOLDERS 9800
NO. OF FOREIGN CURRENCY ACCOUNT HOLDERS 3050
RECOVERY OF LOAN 242517 MILLION
STUCK UP LOAN 800 MILLION

GROWTH OF BRANCHES BY NBP

YEAR TOTAL (CORES)
1950 17
1951 29
1952 40
1953 52
1954 65
1955 67
1956 73
1957 85
1958 105
1959 129
1960 156
1961 194
1962 239
1963 330
1964 450
1965 519
1966 618
1967 1421
1991 1537
1995 1468
1997 1434
1998 0000

1999 0000
2000 0000
GROWTH OF DEPOSITS MOBILIZED BY NBP
YEAR TOTAL (CORES)
1950 1.51
1951 5.58
1952 17.36
1953 27.90
1954 29.27
1955 33.03
1956 40.19
1957 48.58
1958 58.04
1959 67.50
1960 83.54
1961 88.51
1962 104.60
1963 124.72
1964 157.53
1965 191.44
1966 198.88
1967 227.31
1991 10574.8
1995 20828.3
1997 25486.2

1998 27339.0
1999 0000
2000 0000
Ratio Analysis
1- Return on shareholder’s Investment = Net Profit(after tax) x100

Shareholder’s Equity
1999 = 31316 x100 =0.30%

10357847
2000 = 461227 x100=4.05%

11377527
2- Return on Equity Capital = Net Profit(after tax) x100

Paid up Capital
1999 = 31316 x100 =2.14%

1463880

2000 = 461227 x100=31.51%

1463880
3- Equity per share = Net Profit(after tax)

No. of Equity Shares
1999 = 31316 =Rs.0.21per share

146388
2000 = 461227 =Rs.3.15per share

146388
4- Current Ratio = Current Assets

Current Liabilities
1999 =202926341 = 1.58:1

191551291
2000 = 328968829 =1.57:1

208991751
5- Working Capital = Current Assets – Current Liabilities
1999 = 202926341-191551291 = Rs.111375050
2000 = 328968829 –208991751=Rs.119977078
6- Debt- Equity Ratio = Out Sider’s Fund

Shareholder’s Equity
1999 = 191551291 = 18.49:1

10357847
2000 = 208991751 = 18.37:1

11377527
7- Equity Ratio = Shareholders Fund x100

Total Assets
1999 = 10357847 x100 = 2.96%

350406373
2000 = 11377527 x100=3.06%

370747280
8- Current Assets to Proprietors fund =Current Assets

Shareholders Fund
1999 =302946341 =29.24:1

10357847
2000 =328968829 =28.91:1

11377527
9- Return on Assets =Net profit (after Tax) x 100

Total Assets
1999 = 31316 x100 =0.009%

350406373
2000 = 461227 x100=0.12%

370747280
10- Assets Turn over Ratio =Total income

Total Assets
1999 =35291180 =0.10:1

350406373

2000 =33732443 =0.09:1

370747280
11- Return on Deposits =Net Profit after Tax

Total Deposits
1999 = 31316 =0.0001:1

294754493
2000 = 461227 =0.0014:1

316493342
12- Advance to Total Deposits = Advances x 100

Total Deposits
1999 = 122559342 x 100 =41.58%

294754493
2000 =140325289 x 100 =44.34%

316493342
CHAPTER # 11
SUGGESTIONS & RECOMMENDATIONS

Although NBP is included in ten top most banks of the world equity as well as
assets wise, but for the further improvement in various sectors may recommendations to
the bank would be as follows:
PLANNED AND HEALTHY COMPETITIONS:
NBP should become very specific about its competitors, so that it can
understand who is its competitor in the first degree and who is in the second degree.
Then the first-degree competitors should be watched closely.
FORMATION OF A RESEARCH CELL:
A research cell should continuously try to gather information about the

present action so its competitors and expected future actions. So in this way more
effective strategies can be formulated.
REWARD SYSTEM:
The performance reward linkage should be make strong as it is said, "A

happy employee delivers more than he receives from the organization." The NBP should
also try to make its employees happier.
 There is immediate need, to reconstruct the personnel policies. Selection should

be through newspaper advertisements. In this way more intelligent, efficient and
qualified staff can be formulated.

 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.
 Govt. should take keen 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.
 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.
 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.
 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.
 N.B.P. 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.

 There is also a need of proper recruitment and selection program. New young
talent should be introduced to inject the new ideas.
 Deterioration in efficiency is mostly due to promotion without merit. So

promotions must be awarded on merit and also when due.
 Special attention should be given to the behavior of the employees towards the
customers, as customer is the most important person for any bank.
 There are many employees who are working on ad-hoc basis creating
dissatisfaction. The deserved should be made permanent employees.
 Political influences in the bank should be eliminated.
 To motivate the employees of the bank, regular bonuses and incentives should be
given to them.
 There must be a friendly environment among all the employees as it enhances the
trust and sincerity.
 NBP should be focus its attention towards the share of traveler cheque.
 Branch manager should be trained in the field of selling to serve better according
to the expectation of customers.
 The recruitment policy should be fair and transparent.
 Management should increase the branch limit of expenditure to fulfill the
necessary expenditure of personnel relation.
CHAPTER # 12

REFERENCES
 https://www.google.com.pk/#q=nbp+bank+
 http://en.wikipedia.org/wiki/nbp_Bank
 http://www.pakistanbanks.org/members/networks/natonalb
ank_network.html

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Sir Imran Hanif

INTRODUCTION OF NATIONAL BANK

The commercial bank of Islamic Republic of Islamic Republic of Pakistan came

The Bank of Bahawalpur was conjointly incorporate into this Bank.

An Internship Report Institute of Banking and Finance

4)_ To satisfy customers on the far side their expectations by

5)_ To serve Asian country higher so as to provide socio-economic uplift.

6)_ To provide the maximum profit to depositors by achieving sound profitable

7)_ To develop & enhance its system & technology.

8)_ To train its staff.

Full and efficient services of foreign trade.

An Internship Report Institute of Banking and Finance

ORGANIZATION CHART OF NATIONAL BANK OF PAKISTA

DESIGNATIONS FO HIGHER LEVEL OFFICERS

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

ASSISTANT VICE PRESIDENT

GRADE III OFFICER

An Internship Report Institute of Banking and Finance

PRODUCT / SERVICE MIX OF NATIONAL BANK

• Receipts f customer deposits.

An Internship Report Institute of Banking and Finance

FIXED DEPOSIT RECEIPTS

SHORT TERM DEPOSITS

FOREIGN CURRENCY DEPOSITS

1-Foreign Currency Accounts.

i- FOREIGN CURRENCY CURRENT ACCOUNTS

ii-FOREIGN CURRENCY SAVING ACCOUNTS

An Internship Report Institute of Banking and Finance

Advances area unit the main supply of earning financial

a- Documentary Letter of Credit

DOCUMENTARY LETTER OF CREDIT

An Internship Report Institute of Banking and Finance

An Internship Report Institute of Banking and Finance

SERVICES AVAILABLE ON NBP ATM’S

HOW MUCH CASH CAN BE WITHDRAWN

PIN (PERSONAL IDENTIFICATION NUMBER) MAILER

An Internship Report Institute of Banking and Finance

ACCOUNT OPENING AND CLOSING DEPARTMENT

An Internship Report Institute of Banking and Finance

HOW TO OPEN AN ACCOUNT (GENERAL)

i)- Six boxes for name.

An Internship Report Institute of Banking and Finance

v)-Space for other accounts.

Following points are considered by the bank in this regard.

PROCEDURE TO OPEN AN ACCOUNT

An Internship Report Institute of Banking and Finance

2)- PRIVATE ACCOUNTS

An Internship Report Institute of Banking and Finance

 office address & office ph. No.

3)- JOINT ACCOUNT

4)- JOINT COMPANY

An Internship Report Institute of Banking and Finance

5)- PARTNERSHIP COMPANY ACCOUNT

6)- SOCIETIES / CLUBS AND ASSOCIATION ACCOUNT

An Internship Report Institute of Banking and Finance

 Business registration certificate number