CHAPTER # 1

INTRODUCTION OF NATIONAL BANK OF PAKISTAN 1.1 Introduction: National Bank of Pakistan (NBP) is one of the largest commercial bank operating in Pakistan. It has modifies its role and has moved from a public sector organization into a modern commercial bank. it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead bank in the debt equity market, retail and consumer banking, corporate investment banking, agricultural financing, treasury services and is growing interest in promoting and developing the country's small and medium enterprises and fulfilling its social responsibilities, 1.1.1 Head quarters and branches: NBP headquarters is located in Karachi; NBP has over 1289 branches country wide with total employees figured up to 16457. The bank provides both commercial and public sector banking services. National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance sheet size surpasses that of any of the other banks functioning locally. The Bank's services are available to individuals, corporate entities and government. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is listed on the Karachi Stock Exchange. National Bank of Pakistan is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, and NBP Cash n Gold. It has implemented special credit schemes like small finance for agriculture, business and

industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the promotion of literature, NBP recently initiated the Annual Awards for Excellence in Literature. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined period. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and developing the human resources. National Bank of Pakistan has built an extensive branch network with 1289 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing, Tashkent, Chicago and Toronto. It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty , Kazakhstan. The Bank's joint ventures are, United National Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore). 1.1.2 Financial performance: The Bank's financial performance has been remarkable. In 2006, total assets are estimated

at PKR 1,035,02 million, while deposits have grown to nearly PKR 832,152 million. Pretax profit rose to PKR 24,415 million. Earnings per share have remained PKR 13.05 in 2010. The increase in profit was achieved through strong growth in core banking income. Profit after tax in year 2010 was PKR 17,563 million which happened through growth in the loan portfolio as well as increase in spreads. Advances in year 2010 were PKR 477,507 million. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration 1.1.3 Awards: Recently NBP has been awarded the Certificate for Performance by SBP/PRI for providing best remittance services. The bank was awarded Bank of the Year award for the year 2010. This award was given on the back of trust that clients have shown National Bank has earned recognition and numerous awards internationally. It has been the recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine, the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and 2007, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kissan Time Awards 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been presented a Recognition Award 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards. 1.1.4 Time line of history The following time line gives a brief insight on the history o the national bank of Pakistan. 8 1949 National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance of 1949 and was government-owned. NBP acted as an agent of the central bank wherever the State Bank did not have its own branch. It also undertook government treasury operations. Its first branches were in jute growing areas in East Pakistan. Offices in Karachi and Lahore followed. 9 1950 NBP established a branch in Jeddah, Saudi Arabia.

10 1955 By this time NBP had branches in London and Calcutta. 11 1957 NBP established a branch in Baghdad, Iraq.

12 1962 NBP established a branch in Dar-es-Salaam, Tanganyika. 13 1964 The Iraqi government nationalized NBP's Baghdad branch. 14 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities between India and Pakistan. 15 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch. 16 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation. 17 1974 The government of Pakistan nationalized NBP. As part of the concomitant consolidation of the banking sector, NBP acquired Bank of Bahawalpur. 18 1977 NBP opened an offshore brain Cairo. 19 1994 NBP amalgamated Mehran Bank. 20 1997 NBP branch in Ashgabat, Turkmenistan commenced operations. 21 2000 NBP opened a representative office in Almaty, Kazakhstan. 22 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan International Bank, of which NBP would own 45% and United Bank 55%. 23 2002 Pakistan International Bank renamed itself United National Bank Limited (UNB). The ownership structure of the UNB remained as before. The only change to the shareholding structure is that UNB had recently been privatized in Pakistan and was now owned 49% by the Government of Pakistan and 51% by a joint foreign consortium of Abu Dhabi. 24 2003 NBP received permission to open a branch in Afghanistan. 25 2005 NBP closed its offshore branch in Cairo. 26 2010 NBP opened its branch in Karaganda (Kazakhstan).

1.2 Organization Charts:

1.2.2 Staff Rank Organogram.

1.2.3 Organogram of departments

1.3 Department Functioning Under NBP NBP has seven main departments for functioning of which whole function of bank is depended or we can say that all services are rendered through these departments. These department are explained with their headings are as under 1.3.1 Advance Department Advance department receives the application from borrowers and after getting approval from the head office advances are made. The advances can be of following nature. 27 Agriculture advance to farmers 28 Short terms advance to businessmen 29 Long term advance for setting industry 30 Medium term advance for working capital 31 Seasonal advance to cotton gingers rice and sugar mills. 1.3.2 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 Dera Ismail Khan (0327) can be divided into two sections due to its activities.

32 Local remittance 33 Foreign remittance Local remittance: Local remittance section deals with remittance (incoming and outgoing but only in local i.e., Pakistan rupee and within Pakistan. Local remittance includes the following eight functions in NBP: 34 Transfer through pay order 35 Transfer through demand draft 36 Telegraphic transfer 37 Mail transfer 38 Local / internal transfer 1.3.3 Foreign Exchange Department Imports We sell our foreign exchange to the other country which is called such as we purchase the foreign goods from the others. Import is done through letter of credit (l/c) by the importer. Letter of credit is an undertaking given by the importer bank to the exporters bank. Export Export is to sell our goods to the other country and earn foreign exchange. The bank provides facilities of exporting the commodities to the manufactures of the goods of the country. Foreign remittance The bank provides the foreign remittance facilities to the student studying aboard. Bank also provides foreign exchange in the shape of travelers cheques to the intending visitors 1.3.4 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 banks clearing house or we can say in other that cheques which cannot 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.
NIFT: NIFT: national institute of facilitation technologies is the body that helps in the fast completion of the clearing process between the banks. The clearing services provided by NIFT are 39 Same day clearing 40 Overnight clearing 41 Local us dollar clearing 42 High value clearing etc It collects cheques from the clearing department of the branches at a fixed time on daily bases and then delivers it to the clearing house. And then deliver the cheques to recipient side of the clearing on daily bases.

Types of cheque:

Some specific types of cheque are being entertained in the clearing department of NBP main branch, Dera Ismail Khan (0327). These types of cheque are: 43 Local cheque 44 Out station cheque 45 In house cheque

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. 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. 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: 46 Inward clearance 47 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 cheques which are drawn on other bank and presented to NBP main branch, Dera Ismail Khan (0327) 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: 48 Local clearing 49 Outstation clearing Excess of outward clearing over inward clearing produces a net increase in the clearing account balance. The excess of inward clearing over outward produces a net decrease in the clearing account balance. The first case is referred to as favorable clearing & the second case as unfavorable clearing. 1.3.5 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. 50 Cash receipts for receive deposits. 51 Encashment of cheque Cash department of NBP is a separate close part covered with glasses. No one other than cash departments 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: 52 For current account holders

53 For saving account holder Both are in different colors for clear identification. 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. 54 Cheque should be drawn on NBP. 55 It should not be post dated. 56 It should be bearer cheque so the word bearer should not be crossed. 57 Payment is not stopped by the drawer. 58 Amount in words & figure should be same. 59 Alternation in date / figure / word require drawers 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. 1.3.6 Account Opening 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 have been described: Types of accounts: 60 Current account 61 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 customers 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 intends to open account, a card is filled & signed by customer. This card contains: 62 Six boxes for name. 63 Opening date 64 Special instructions 65 Space for first a/c no. 66 Space for other accounts. Following points are considered by the bank in this regard.

67 Another account holder of the bank should properly introduce the new customer. 68 The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified. 69 A copy of identity card is required by bank. 70 Against submission of the banks 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. 71 Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account. 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: 72 Sole proprietors 73 Private accounts 74 Joint account 75 Limited company 76 Partnership company 77 Club, society & association Basically following information is required: 78 Name 79 Address 80 Telephone no. 81 Currency of account 82 Nature of business 83 Residential status

84 Special instruction regarding the account 85 Signature of the applicant Documents to be attached: Documents required to be attached are different for different categories.

Sole proprietors account 86 They have to submit their business registration certificate number. Private accounts For individual or private accounts following documents & information has to be given: 87 Name 88 Residence address 89 Mail address 90 Foreign address 91 Office address & office ph. No. 92 Position to title 93 Passport or identification no/ 94 Matrimonial status 95 Date and place of birth 96 Nationality 97 Residence visa no. 98 Name and address of other banks in Pakistan Joint account If someone wants to open joint account the following information is needed: 99 Full name 100Address 101Specimen of signatures of the joint account holders

Joint company In this case following information & documents are required: 102Certified true copy of the memorandum and articles of association of the company. 103Certified true copy of the resolution of the board of directors / managing committee / governing body regarding conduct of the account. 104Certified list containing names and signatures of the directors / office bearers. 105Certified true copy of the certificate of incorporation or registration. 106Certified true copy of the certificate of commencement of business ( in case of public limited companies). 107I.d. card copy of each director 108Original is also enclosed for inspection and return 109List of persons authorized to operate on the account. Partnership company account Documents required in this case are as follows: 110Full names 111Address 112Specimen of signatures of the partners 113Certified true copy of partnership deed Societies / clubs and association account Documents required in this case are as follows: 114Copy of the rules certified by the president and the secretary. 115Certified copy of a resolution of the committee and the specimen signatures of the persons authorized to sign. Issuance of cheque book: Bank issues first cheque book through a procedure which is on the opening of an account bank mails a letter of thanks to the address of the account holder with an envelope attached with the letter, account holder signs the letter and posts it back to the bank. After receiving

signed letter bank issues the first cheque book.

Chapter # 2
Personal Working and learning Work Done By Me at the Branch: Major activities performed or observed during my internship program are as follows; 2.1 Account Opening 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. following. 116Individual 117Firm 118Company 119Trust 120Staff 121Others Opening an Account: 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. The customers opening current and saving accounts can be categorized as

There are different requirements for different types of accounts and accountholders.

Deposits: The procedure undertaken upon receiving deposits from the customers is as follows: 122Examining the deposit slip to ensure that the name and the account numbers are clearly indicated. 123Counting the cash and cheques and agree the total with the amount on the deposit slip. 124After 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. 125Cheques 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. . 2.2 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.
Effect: 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 considered as favorable clearing & the second case as unfavorable clearing. In Clearing Department I Did Following Tasks 126 Filling up the vouchers

127 Record keeping of cleared cheques 128 Reporting the objections 129 Recording of the cheques which were returned due to any objection

2.3 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: 130Demand drafts 131Mail transfer 132Telegraphic 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. 2.4 Advances Department: I worked and gained knowledge in advances department for a week and I focused on the Gold Demand Finance and Running Finance. In this regard I performed following tasks: 133Examining prerequisites for the loan i.e. documentation 134Filled the forms 135Examining the jewelers valuation 136Examined the post requisites. 137Record keeping

Documents required for Gold Demand Finance: There are several documents which are necessary to get loan under running finance which are as follows: 138Borrowers CNIC 139Two nominees CNIC 140Jewelers valuation of ornaments 141Managers approval letter Characteristics of Running Finance: 142Unlikely demand finance (gold demand finance) running finance includes installments facility. 143The customer has the drawing power which means he can draw amount from his account as much as he required at any time during the given time frame/ 144It is secured financing 145Stock is pledged by the bank as security in which following requirements are fulfilled before lending. 146Stock valuation is done by the bank and advances are made accordingly. The stock valuation can be done through following ways o Invoices o Quotations o Actual bills 147In stock pledge the title remains with the customer but possession goes to the bank. Verifications for Advancements: Regarding advances in the bank I observed that how bank undertakes some verification related to the customer and his business so that the risk may be avoided as much as possible? The verifications are done by the bank through some institutes. Through these institutes bank observes customer credit history, other loans taken by the customer, and customers profile.

These institutes are: 148Electronic credit information bureau (ECIB) 149International credit information limited (ICIL) 150NADRA (verisys) Default Criteria: Bank has its own criteria on which customer are observed that whether the customer is making repayments in with in due time or becoming default. This criterion tells that if: 151Customer does not return the amount for 3 months than bank considers it as substandard and 25% of the loan is considered as bad debts 152Customer does not return the amount for 6 months than bank considers it as doubt full and 50% of the loan is considered as bad debts 153Customer does not return the amount for 9 months than bank considers it as complete loss and 100% of the loan is considered as bad debts 2.5 Cash Department In cash department I worked for a week. I observed that department is responsible for the receipt and disbursement of cash from and to the customers. It is also responsible to the disbursement and receipt of cash equivalents like prize bonds etc. Dealing with cash as mentioned above inculcates other responsibility that is to perform the book keeping of the record related to the safe custody of cash and cash equivalents. 154Cash receipts for receive deposits. 155Encashment of cheque Cash department of NBP is a separate close part covered with glasses. No one other than cash departments 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: For current account holders &

For saving account holders. Both are in different colors for clear identification 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. 156Cheque should be drawn on NBP. 157It should not be post dated. 158It should be bearer cheque so the word bearer should not be crossed. 159Payment is not stopped by the drawer. 160Amount in words & figure should be same. 161Alternation in date / figure / word require drawers full signature with signature on the cheque. Verification of Signatures: After receiving the cheque signature of the account holder with the signature on the cheque is verified. If signatures are not the same then it is returned 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 # 3
Organizations SWOT and Branch Level Weaknesses and Area of Improvement SWOT Analysis SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats. SWOT analysis is careful evaluation of an organizations internal strengths and weakness as well as its environment opportunities and threats. The overall evaluation of a company strengths, weaknesses, opportunities and threats is called SWOT analysis. SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses. The SWOT analysis of NBP is briefly explained below

6.1 STRENGTHS: There are several strengths NBP is enjoying like: GOVERNMENTS BANK NBP has a major strength that support its business up to much extent that is, it is governments own bank and is the only bank of government of Pakistan working in consumer banking industry.

OLDEST INSTITUTION:

NBP in one of the oldest bank of Pakistan and first nationalized bank Hence its customer base is strength from this plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank. ALTERNATE DUTIES IN SBP ABSENCE The NBP performs additional services for its customers as well as the other bank customer in the absence of SBP. MORE DEPOSITS THAN OTHER BANK NBP has the relative competence in having more deposits than the other bank. This is because of the confidence the customer have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over all others, lacking it. EMPLOYEE BENEFITS The employers at NBP are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees. BROAD NETWORK The bank has another competency i.e. it has broad-basses network of branches throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied. RELATION BETWEEN STAFF AND OTHER EMPLOYESS The bank enjoys a good plus point when it comes to the employee manager relationship the hearing as removing of discrepancies if any, between the employees, and between the manager and employees.

6.2 WEAKNESSES LACK OF MARKETING EFFORT: The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the era marketing in now becoming a part of every organization. NBP UNDER POLITICAL PRESSURE The strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees. FAVORITISM AND NEPOTISM The promotions and bonuses etc in the bank are often powered by seniors favoritism or depends upon their wills and decision. This adds to the negative factors, which denominate the employees thus resulting in affecting their performance negatively. INEFFICIENT COUNTER SERVICES IN THE RUSH HOURS During the rush hours, the bank is founded out to be a total flop to handle the mob of people peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours where the people find them services entangled in a situation of nowhere because they are not well served. LACK OF MODERN EQUIPMENT The bank lacks the modern Equipment that is currency notes counting machine computers. Even if there is any equipment they lack to fall in the criteria of being rearmed as update and upgraded UNEVEN WORK DISTIBUTION.

The workload in NBP is not evenly distributed and the workload tends to be more on some employees while others abscond away from their responsibilities, which server as a demotivational factor for employees performing above average work.

6.3 OPPORTUNITIES ELECTRONIC BANKING The world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. NBP can utilize the electronic banking opportunity to ensure on line banking 24 hours a day. This would give a competitive edge over others. MICRO FINANCING Because of the need for micro financing in the market, there are lot of opportunities in this regard. Other banks have already initiated, now the time has arrived when the NBP must realize it and take on step to cater an ongoing demand.

6.4 THREATS ENTRY OF NEW COMPETITORS The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition. POLITICAL PRESSURE BY ELECTED GOVERNMENT The ongoing shift in power in political arena in the country effects the performance of the

bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees. DOWNSIZING The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the overall performance of employees negatively. CUSTOMERS COMPLAINTS There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored

3.1 Weaknesses of National Bank of Pakistan (at Main Branch D, I, Khan 0327) During my internship in National Bank of Pakistan Main Branch D. I. khan I observed

many shortfalls and weaknesses which I am mentioning in this chapter. Before mentioning these shortfalls two main things, which I think must be clear that: 162These weaknesses are at the branch level not as a whole as National Bank of Pakistan. 163These weaknesses are observed by me at the branch. The management of the organization may be of opposite opinion regarding my observations The weakness and shortfalls are: 164Sitting Arrangement of The Staff The sitting arrangement of the staff at branch is not proper and creates difficulty in the movement of the staff which causes wastages of the time and reduces performance. 165Bad Customer Management Due to absence of the customer relationship skills in the employees at the counter and poor work management in the branch customers have to wait for longer time for the process of their requirement which ultimately reduces customer satisfaction. 166Uneven Distribution of Work The distribution of the work among the employees is not properly done by the bank which reduces job satisfaction and performance of the employees. 167Job Description is Not Being Observed The tasks which are being performed by the employees at the branch are not according to the job description of the specific designation/post thats why errors and discrepancies are accruing in the work. 168Bad Communication With In The Branch Communication within the employees whether it is vertical or horizontal, is not up to the mark. Communication is not timely and not clear which arises many problems during the work.

169Noisy Environment At The Workplace There exists a noisy environment in the branch which occurs due to the employees because they communicate to each other whether it is regarding their work or apart from the work, by sitting on their seats without moving to the concerned person. So in this situation loudness is required which disturbs the work of other employees at the branch. 170Weak Professional Behavior In The Employees The way employees communicate at the work place, the way they handle the situation, the way they deal with the customers, found to be unprofessional which is harming the perception of the bank. 171Poor Safety of Vault. During my internship I found that vaults safety in not being held as per the rules and regulations of the bank. I observed that unconcerned persons are allowed to enter in the vault this in future may become the reason of the loss or may arise some related issues. 172Fewer Space With In The Branch The branch where I accomplished my internship is the Main Branchand is quite a busy branch that is why the number of employees is also large. To accommodate all employees and to provide a reasonable space to each of them seemed to be impossible as the space in the branch is very small. This results in the disturbance and damage the working environment.

173 Less Space For Car Parking As I mentioned earlier that the branch where I did my internship is very busy branch regarding task and customer visits, so there must be sufficient area for the parking of vehicles but branch is lacking this facility

174 Easy Access Of The People To The Back Side Of The Counter During internship I found that unconcerned people have easy access towards the employees side of the counter and there were no prohibitive measures which were being taken by the bank as this practice may harm the bank by in the shape of loosing important files and many more. 175Unavailability Of Telephone Operator Another big problem I observed in the branch was that there was no telephone operator in the bank. Due to this issue many calls were picked by the unconcerned employees which results in the wastage of the time of employees and at the branch and also at the place where the call is made. 176Long Lunch And Prayer Breaks Time allocated for the lunch and prayer breaks is more than the requirement which is the wastage of the time and customers suffer a lot due to this practice. 177Absence Of The Employees During The Office Hours The break time is already very long along with this another issue is that the employees found to be absent form their seat during the working hours which disturbs the work of other employees as well as wastage customers have wait for the completion of their work. 178Less Qualified Employees Some of the employees working in the branch instead of having huge experience, are less qualified thats why they take long time to adopt the frequently changing of policies and procedures of the bank 3.2 Area of Improvement in National Bank Of Pakistan Main Branch D I Khan: The following are the two area where in my opinion improvement is extremely required in this competition era in the banking sector of the Pakistan and which must be addressed on urgent basis by the management of National bank of Pakistan.

3.2.1 Marketing: In my observation, the area where improvement must be done by the management of national bank of Pakistan is the marketing sector of the bank. During my internship at the main NBP Main Branch D I khan, I observed, and that the area where branch is lacking far behind is the marketing area of the bank. If we look in the modern age banking, marketing plays a key role in the success of the branch and then ultimately of the organization as a whole so management must look in to it to gain the success. To overcome this weakness there must be a separate department at the branch level. 3.2.2 Customer Management: Another area where improvement is extremely required is the customer management at the branch level. The branch where I did internship, customer management was below the standard. Customer has to wait for long time for the fulfillment of their queries which creates dissatisfaction among the customers regarding services provided by the bank.

Chapter # 4
Recommendations and Suggestions 4.1 Recommendations and Suggestions: My recommendations and suggestions about NBP main branch D. I. Khan are on the basis

of the shortfalls and weaknesses which I found in the branch. These recommendations are as follow: 179Sitting arrangement of employees in the branch must be made proper so that movement of employees and customers can be made smooth and easy to avoid the disturbance wastage of time. 180Branch is lacking in the good customer management due to the absence of skills in the employees. Bank should give training to the employees to overcome this problem. This training can be given on the job or off the job. 181The work at the branch is distributed unevenly which reduces the performance level of employees. To avoid this issue management should remain confined to the job description which will increase the job performance. 182Communication in the branch is not up to the mark, it must be made up to the mark so that work may be done quickly and problems are avoided. 183The environment in the branch found to be very noisy which is caused by the employees this is due to unavailability of telephone extensions for the employees. This can be avoid by giving the extension lines to the employees. 184Employees are lacking in the professional behavior which ultimately causes enormous problems. Employees must be given training to enhance professional behavior. 185Vault is the most important and valuable part of the bank. Branch is lacking in the providing security to the vault as per the set standards of the banking regulations. Rules and regulations must be observed in the security of vault strictly. 186The main NBP Main Branch D. I. Khan is very busy branch regarding customer visits and employees but the space in the branch is less to accommodate employees and customers. To avoid this issue the covered are of the branch must be enhanced. 187The branch is very busy due to the visit of the customers but the parking area is very small to accommodate the rush of vehicles. Parking area must be enhanced so

that customers may not face parking problems. 188Unconcerned persons found to be visiting back side of the counter which is a bad practice. This issue should be resolved to avoid related problems. This can be done by using grills and glass walls. 189Branch must have a telephone operator so that the calls can be transferred to the concerned department which will reduce the wastage of time. 190The lunch and prayer break timing should be reduced and strictly be followed to avoid the wastage of time.

Conclusion:

After brief and comprehensive discussion I may safely conclude that the bank overall performance is quite good and is working quite effectively and efficiently. If I have to express my experience of internship in National Bank of Pakistan, I can say that National Bank of Pakistan is a good Organization for internship purposes because most of the employees especially those who are hired through MTO employment program, are willing to teach the internees. Overall working environment of the bank is quite good. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. Employees hired as MTO in the branch are look like banking professionals along with old employees who have experiences but have less education, but overall they are productive for the organization. As far as my learning is concerned; most of the employees at branch were quite cooperative. They helped me to understand the activities of a bank to possible extent. Their good attitude gave me more confidence to learn more and to ask if I have any confusion in my mind. Besides their ever busy schedule they never get disturbed by my questioning. In the end I may say that National bank is a good place for internship because NBP is the leading commercial bank in the country and has large range of services and financial products which inculcates huge knowledge for internees.

References

191National Bank of Pakistan Annual report 2010 192National bank of Pakistan Directors Report 2010.
193A. Arshad, (personal communication 07-07-2011) 194A. Akhtar. (personal communication 18-07-2011) 195http://www.nbp.com.pk 196http://www.nbp.com.pk/products.php 197http://www.nift.com.pk/intro.html 198http://www.wikipedea.com/nationalbankofpakistan