adeel hance

B.Z.U. BAHADUR SUB CAMPUS

PREFACE

Internship is the integral and basic requirement of all the business study programmes in all of

the business study institutes as it is necessary and basic requirement of the BBA(Hons)

degree of the Department of Management Sciences The BAHAUDDIN ZAKARIYA

UNIVERSITY LAYYAH CAMPUS

Because it is the practical implication of the theoretical knowledge which we have taught in

our business subjects to gain further knowledge and experience about professional business

activities.

It equips us with the necessary knowledge, skills and values of business culture which are

basic requirement of the business professional and which also helps new graduates to perform

professionally as they get first step in their practical professional life.

For this reason I was placed at Nationakl Bank of Pakistan Layyah Branch. where I have

done my Eight weeks internship.

During my internship tenure I have gained a lot of knowledge about operations. During my

whole duration I rotate in all the different departments of the bank and was thoroughly

briefed about the procedures of all the banking operations by the concerned staff. My

internship report contains all the knowledge which I have learnt there.

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ACKNOWLEDGEMENTAll praises are for Allah Almighty that has bestowed upon human being the crown of creation

and has endowed him with knowledge and wisdom.

After Allah ,The last Prophet Mohammad (PBUH) Who brought for us revelation and

unlimited knowledge and civilized the barbarian humanbeing.

I am very thank full to Allah Almighty who gave me the courage to complete this complex

task and to my ever caring and loving parents whose prayers helped me to reach this stage of

my life.

Besides, there are many people who supported me in formulation of this report and without

the support of them I could never be able to complete this report successfully.

In this respect I am very thank full to Mr.Aslam Khan (Branch Manager), Mr.Mavzar Kalu

(Operations Manager) and the qualified staff members of NBP Layyah Branch ,who

cooperated with me with their guidance at each step of my internship.

They have provided me a lot of important information and knowledge about the banking

operations in a very short period of time.

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Dedicated

To

My ever caring and loving Parents

&

Respectable TeachersMr. Rashid Saeed

Mr. HasnainMam. Anum Zulfiqar

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TABLE OF CONTENTS

INTRODUCTION 5

Vision 6

Mission 6

About National Bank of Pakistan 7

PRESENT STATUS AND HISTORY 7

DEPARTMENTS OF NBP 7

1.Account Opening and Closing Department 8

2.Cash Dealing Department 10

3.Clearing Department 10

Functions of NBP 12

SWOT ANALYSIS 13

STRENGTHS 13

WEAKNESSES 13

OPPORTUNITIES 14

Threats 14

Work done by me 19

OPENING NEW ACCOUNT BASICS 20

INVESTIGATION 20

ISSUANCE OF CHEQUE BOOK 24

SUGGESTIONS AND RECOMMENDATIONS 27

INTRODUCTION

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It is an uphill task to trace the origin of word “bank”. Some people think that “banco” is the

origin of bank. “Banco” means a bench. The early bankers had done their business on the

benches in Lombardy-Italy. There are others who say that “back” is the origin of it. It is a

German word and means a joint stock fund. There is no record for checking the correct

opinion. We can say that;

“The Bank is a man who lends you an umbrella when the weather is fair and takes it away

when it rains.”

What is Bank……? A bank is an institution for the custody, loan or exchange of money for sanctioning credit, for

transferring funds by domestic foreign bills of exchange. It is a pipeline through which

currency moves into and out of circulation.

As it is clear from the definition of banking, the main activity or function of banking is

borrowing and lending of money with a margin of gain. However, as far as the present day

banking is concerned, there are a number of different banks, set up under specific different

objectives, performing various functions.

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Vision

To be the pre-eminent financial institution in Pakistan and achieve market recognition both in

the quality and delivery of service as well as the range of product offering

Mission

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

Creating a powerful & distinctive brand identity, Achieving top-tier financial performance,

and Adopting & living out our core values.

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http://www.nbp.com.pk/About_Us/CoreValues.htm


About National Bank of PakistanNational Bank of Pakistan maintains its position as Pakistan's premier bank determined to

set higher standards of achievements. It is the major business partner for the Government of

Pakistan with special emphasis on fostering Pakistan's economic growth

through aggressive and balanced lending policies, technologically oriented

products and services offered through its large network of branches

locally, internationally and representative offices.

Aim to be an organization that is founded on…

Growth through creation of sustainable relationships with our customers.

Prudence to guide our business conduct.

A national presence with a history of contribution to our communities.

Shall work to…

Meet expectations through Market-based solutions and

products.

Reward entrepreneurial efforts.

Create value for all stakeholders.

Aim to be people who…

Care about relationships.

Lead through the strength of our commitment and willingness to excel.

Practice integrity, honesty and hard work. We believe that these are measures of true

success.

Confidence that tomorrow NBP will be…

Leaders in our industry.

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to the changing needs of

the internal and external environment

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http://www.nbp.com.pk/Branch_Nwt.htm

http://www.nbp.com.pk/Services.htm


PRESENT STATUS AND HISTORYNational Bank of Pakistan maintains its position as Pakistanis premier Bank determined to set

higher standards of achievements. It is the major business partner for the government of

Pakistan with special emphasis on fostering Pakistanis economic growth through aggressive

and balanced lending policies, technologically oriented branches.

The National Bank of Pakistan came into existence on 20th November 1949 under the

National Bank of Pakistan Ordinance No.21 of 1949.It is a semipublic bank and functions

like other commercial banks. Therefore it receives funds from the depositors and provides

loans/credit facilities in all sectors including trade, industry and agriculture.

It also functions as an agent of the Central Bank and operates the treasuries at places where

no branch of State Bank of Pakistan exists. The National Bank of Pakistan was also

nationalized, along with other banks, in January 1974. The Bank of Bahawalpur was also

merged into this Bank.

Branch Network---National Bank of Pakistan

DEPARTMENTS OF NBP

1. Account Opening and Closing DepartmentBasically 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

1. Current account

2. Saving account

Brief explanation of the two main accounts is as follows:

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Overseas Branches

16 Overseas Branches 4 Representative offices 1 Subsidiary 1 Joint Venture

Domestic Branches

29 Regional Offices 1190 Branches 130 Online Branches 4 Subsidiaries


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 intends to open an account, a card is filled & signed by customer. This card

contains:

Six boxes for name

Opening date

Special instructions

Space for first A/C No.

Space for other accounts

Following points are considered by the bank in this regard:

a. Another account holder of the bank should properly introduce the new customer.

b. The account holder should sign the account opening form in the presence of bank

officer and the signature is duly verified.

c. A copy of identity Card is required by Bank.

d. 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.

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e. Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.

f. Minimum amount for opening and continued maintenance of accounts is Rs.5,

000 for both current and saving.

The bank reserves the right to change the above mentioned minimum balance requirement at

any time without any notice.

HOW TO CLOSE AN ACCOUNT

The account can be closed by the customer. The customer is required to submit an 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.

2. Cash Dealing DepartmentCash 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: 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.

3. Clearing DepartmentNearly 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

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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

cash 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 CLEARING

Clearing department deals with the two type of the clearance.

These are stated below:

1. Inward clearance

2. Outward clearance

1. Inward clearance

Cheque drawn on NBP, 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.

2. Outward Clearing

Similarly cheques which are drawn on other bank and presented to NBP Main branch

Jhang are known as outward clearance for Main branch Jhang. So outward clearing

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results in inflow of funds from paying bank into the clearing account maintained with

clearing house increasing the balance in the clearing account.

Functions of NBPThe National Bank of Pakistan performs two types of function. It acts as an ordinary

commercial bank, and at places where there are no branches of State Bank of Pakistan it

represents Pakistan, that is why it cannot be privatized. As a commercial bank it performs the

following functions.

1. Accepting of deposits of money on current account, saving, term deposit and other

profit and loss sharing accounts.

2. Borrowing money and arranging finance from other banks.

3. Advancing and lending money to its clients.

4. Financing of projects including technical assistance, project appraisal through long

term/short term loans.

5. Buying, selling, dealing and discounting of bills of exchange, promissory notes,

drafts, bill of lading, other instruments of securities etc.

6. Foreign exchange business.

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

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

9. Carrying on agency business of any description other than managing agent on

behalf of clients, including government and local authorities.

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

11. Transacting guarantees and indemnity business.

12. Undertaking and executing trusts.

13. Making investments in other banking companies.

14. Joint venturing with foreign dealers, agents and companies for its representation

abroad.

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

16. Utility services.

17. Providing Hajj services to intending Hajjis.

18. Agent to State

19. Bank of Pakistan for collecting

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

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21. Treasury business

22. Gold finances.

SWOT Analysis of National Bank of Pakistan

is the overall analysis of a company’s strength, weakness, opportunities, and threats

are called SWOT analysis. It is the way of monitoring the external and internal analysis

of the marketing environment. The SWOT analysis of the National Bank Of Pakistan

is as follows:

tStrength

“One way to keep momentum is to have constantly greater goals”

More equity.

Being the pioneer of banking in Pakistan, NBP is one of the oldest banks and is the

richest in experience.

NBP focuses on consumer banking by lucrative schemes, products and services

suiting best to the wants and demands of the customers.

The band is always on the look to improve its services both to the domestic as well as

overseas customers.

Human resources development and introduction of new technology towards modern

banking.

24 hours cash access and safe payment products for high value transaction.

NBP instant financing products for customers wanting instant loan facilities NBP

branches.

Having potential to encounter the competitive environment in the market.

Customer enjoys the services at the residential localities.

Weakness Extremely burden on employees due to work pressure.

No coordination among the employees.

Discrimination in services to customers with large and small accounts.

Inconsistency in efficiency and working atmosphere due to the largest of branches.

Poor Discipline/Punctuality, Poor Dealing

Lesser number of employees

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Nepotism, Ambiguity in Assessment Procedure

Security Cameras are good for nothing

Critical Process, Information Desk

Compliant Box is not safe.

OpportunitiesThe following opportunities should be availed by the bank:

The bank should avail the Deposit mobilizations

It should Introduce new products

Should Improved marketing strategy

Should Advertise the products and services

E-banking facility is also a new opportunity which is a flourishing business in foreign

countries

Threats Facing more competition by foreign banks in the market.

Also the increasing operation of private banks.

Highly attractive and advance services by foreign banks to their customers.

The threat of inconsistency and government policy regarding to business and

economics sectors, specially political and regional situation which makes the

environment uncertain.

Growing global technological advancement.

Strict regulation by government over credit facilities to the customers Loss of

confidence of overseas customers due to freezing of accounts.

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PESTEL Analysis of National Bank of Pakistan

ere are many factors in the macro-environment that will effect the decisions of the

managers of any organization. Tax changes, new laws, trade barriers, demographic

change and government policy changes are all examples of macro change. To help

analyze these factors managers can categorize them using the PESTEL model. This

classification distinguishes between:

hANALYSIS FINANCIAL

The financial results of the company for the year under review compared with the

preceding year are tabulated below:

2012 2011 2010

Gross Profit 988625899 923539621 45,407,183

Operating Profit /

(Loss)

83245239 765432987 1,478,569

Profit before taxation 1325679654 1031,523,549 4,401,781

Profit after taxation 1,256,127,201 1,113,293,807 213,060,882

Earning per share 21.45 18.23 254,551,589

Ratio Analysis• Liquidity Ratios

• Financial Leverage or Debt Ratios

• Activity Ratios

• Profitability Ratios

• Liquidity Ratios

Liquidity ratios are used to measure a firm’s ability to meet short-term obligations. From

these ratios, much insight can be obtained into the present cash solvency of the firm and the

firm’s ability to remain solvent in the event of adversity.

• Current Ratio

Current Assets/ current liabilities 2010 2011 2012

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1.28 1.45 1.78

Above figures show that in 2011 ability to covers its current liabilities is good. As firm is

manufacturing so current ratio of 1.45 is acceptable. In each year current ratio is more than 1.

Hence firm is good regarding current ratio and if we compare horizontally 2012 is better one.

• Quick Ratio

Current Assets-Inventory/current liabilities 2010 2011 2012

0.95 0.87 1.05

This ratio serves as a supplement to the current ratio in analyzing liquidity. This ratio is same

as current ratio except that it excludes inventories. The ratio concentrates primarily on the

more liquid current assets, cash, and receivables. .

• Financial Leverage (Debt) Ratios.

Ratios that simply show the extent to which firm is financed by debt.

• Debt Ratio

The debt Ratio indicates the firm long term debt paying liability and it is computed as follows

• Debt to Equity

Total debt/total equity 2010 2011 2012

43 98 73

It indicates the percentage of assets financed by creditors and it help to determine how well

creditors are protected in case of solvancy.

• Debt to Total Assets

Total debt/total Assets 2010 2011 2012

.80 0.95 0.92

It shows the how is your debt to meet the company’s total Assets so your Assets can

minimize your debt finance.

• Time Interest Earned Ratio:

EBIT / interest expense 2010 2011 2012

14time 18 times 11 times

It measure the percentage of interest paid by the earnings.

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If we compare horizontally ,we see 18 is better one because in 2011 EBIT is better and interst

is less. So 2011 is good than other one.

• Activity Ratios:

These ratios are also known as efficiency or turnover ratios. Measures how effectively a firm

is using its assets. It is calculated by dividing cost of goods sold by average inventory or by

dividing Net sales by Inventory.

Receivable TurnoverSales/account receivable 2010 2011 2012

1.35time 1.54 times 1.76 times

It shows the total receivable on net sales in 2011 was 1.54times but in 2012 it increase to 1.76

times so receivables is better than previous ones.

Average Collection PeriodA/R /net sales .365 2010 2011 2012

9days 12 days 5 days

LSM shows best performance for the yearly basis to collection of debts that is more

important for the company in 2011.

Inventory turnover Ratio:C.G.S/Inventory 2010 2011 2012

12time 15 times 08 time2010

Inventory Turnover in Days C.G.S/INV .365 2010 2011 2012

14days 21days 12 days

Inventory in days is meaningful in 2011 but in 2012 it shows best inventory that is efficient

so less days shows best performance of LSM

Total Assets turnover:Net Sales/ Total Assets 2010 2011 2012

1.25 1.45 2.65

The total asset turnover ratio tells us the relative efficiency with which a firm utilizes the total

assets to generate sales. This is calculated by dividing the net sales with total assets.

• Profitability Ratios:

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Profitability Ratios are of two types --- those showing profitability in relation to sales and

those showing profitability in relation to investment. These ratios indicate the firm’s overall

effectiveness of operation.

Profitability in Relation to Sales

Net Profit MarginNet Income/Net Sales 2010 2011 2012

0.35 0.45 0.65

The net profit margin is a measure of the firm’s profitability of sales after taking account of

all expenses and income taxes. It tells us a firm’s net income per dollar of sales.

In the year 2011 the firm’s profitability after taking account of all expenses and

income taxes is 14% of net sales. We can say that firm’s net income of sales is 14%..

Return on EquityNet Income / Shareholder Equity 2010 2011 2012

0.80 0.98 0.64

It shows the company capital in 2009 is 66% of total equity to shareholders that’s more

beneficial for FSML but in 2010 it not meet the previously 61% that is distributed among

equity holders, common stock holders.

MY 06 WEEK ACTIVITIES:I start my internship on 25-06-2015 first day I was introduced by the staff and introduce

me with different department of the NBP and give me information about the functions of the

departments. I work here for six week and do my best in account department

• First week I deal with petty cash vouchers. I see that how much amount they pay in

cash and what will be the process of vouchers and how they enter this.

• Second week I deal with bank vouchers and adjustment vouchers and see how they

done it.

• Third week I work in income tax department and see how they give income tax on

different supplies in different percentage.

• In forth week I see sale tax invoices and see how they prepare general sale input

statements and try to get it perfectly.

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• Fifth week I learn how to prepare sale and salary sheet how they deduct taxes and

give them allowances to the employees.

In last week I study the annual report of NBP Layyah Branch and over view of all the report

and analysis it to see the position industry.

Work done by Me

For internship, I was asked by my coordinator to go National Bank of Pakistan to have an

internship. In the National Bank of Pakistan, I really enjoyed working with the staff of Aslam

Mor Layyah Branch. It was almost impossible to work in all the departments within that

limited time. But on my request, the staff of the branch provided me the opportunity to work

in the different departments for the sake of practical knowledge. I feel highly indebted to

work in the Aslam Mor Layyah Branch the request of the manager of that branch Mr Aslam

Hans, because I learnt a lot in that branch. As everybody knows that:

"Knowledge without practice is sterile”

In order to give vent to this idea an Internship program of two months has been arranged in

different esteemed organizations during BBA.

On my first day of Internship, Manager handed me over the charge of Assistant to

Accountant.

As three departments namely Accounts, Cash and Billing, and Clearing were being managed

by the Manager in this particular branch. I started my practical training by giving tokens for

the cheques to withdraw and entering them into token book. This was the routine work that I

had done it daily. At the time of closing exact position of cash in hand, Receipts and

Payments were evaluated. The Manager and the Accountants duly signed

this evaluation.

National Bank of Pakistan collects utility bills on behalf of WAPDA by

putting the stamp on the utility bills “Paid”, Date of payment, Signature of

the officer receiving the utility bills. I collected bills of GEPCO, during

period of my internship. After receiving utility bills a list is made on the form, which is called

Bills scroll form. One copy of the scroll is with the bank for evidence whereas the original

copy with the receipt of the bills is sent to the billing department of the

respective corporation. The bank charge commission on the bills.

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After some days, I came under the supervision of the Cashier who got me to know, how the

books of cash are balanced at the closing of each day. I too learnt to prepare General Ledger

which is called as the mother of all books used in the branch. It was really a tough and

daunting task.

After 4 weeks, my Manager tells me about the transfer book which keeps the record of the

transfer of funds between clients of bank. I have also worked with manager in Advance

salary, Gold loan, and Account opening.

OPENING NEW ACCOUNT BASICS

During the span of mine internship in NBP, I learned and observed a lot about the opening of

an account. Basically, I think that the opening of an account is the establishment of a

contractual relationship between the banker and the customer. By opening an account at

bank, a person becomes a ‘customer’ of bank. Further, I am going to express the basic

requirements and steps involved in the opening of an account.

INVESTIGATION

Before opening an account NBP as like the other banks in Pakistan ascertain whether or not

the person who is going to open the account is a desirable customer or not. Then NBP

determine the prospective customer’s integrity, respectability, occupation and the nature of

business by the introductory references given at the time of account opening. Negligence in

this informal preliminary investigation may result in serious consequences not only for the

banker concerned directly but also for other bankers and the general public who may be

affected indirectly.

HOW TO OPEN AN ACCOUNT (IN GENERAL)

Before opening an account in NBP, I observed that the following points must be considered

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.

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4. Each account shall be allotted a distinct number that is to be quoted in all correspondence

with the bank relation to the account.

5. Minimum amount to open an account is required regarding the nature of account.

PROCEDURE TO OPEN AN ACCOUNT

According to my practice in NBP, when a customer wants to open an account, the bank

officer gives him an application form. All information, which is necessary to be known by the

bank, are requirements of the application form. Form also requires the essential documents to

be attached by the customer.

Basically following information is required to open an account with NBP:

1. Title of Account

2. Full Name of Applicant

3. Occupation

4. Address

5. Telephone No.

6. Currency of account

7. Nature of Business

8. Introducer’s Name, Address & Signatures

9. Special instruction regarding the account

10. Initial Amount of the Deposit

11. Signature of the applicant

PROCEDURE TO HONOR AN ACCOUNT

During my internship training in the National Bank of Pakistan, I observed and found

Cheques are received for the following purposes.

i. For Cash payments

ii. For transfer (from one account to another account)

iii. For Clearing

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FOR CASH PAYMENTCheques which are presented on Bank counter must be checked in the following way:

1) Date.

2) Signature of Drawer.

3) Signature of Payee.

4) Whether Bearer has cancelled.

5) Whether Payee account duly is there.

If condition 4&5 exist then check the signatures of Drawer.

6) Match the figure and wordily amount of cheque.

When all above matters are satisfied then come to the Token register and check:

1) Token number.

2) Cheque number.

3) Amount of cheque.

4) Particulars.

Two stamps are put on cheque.

a) Cash Payment (on the face of cheque).

b) Stamp for Token (on the back of cheque).

On stamp which is put for token their details are as follows:

Token number.

Time of giving token to client.

Signature of token giver.

CHEQUES FOR TANSFER

When cheques are presented to be sent for collection and drawn on bank situated

within the city then there are three stamps to be put on face as well as on back of

cheque.

a) Crossing Stamp (face)

b) Transfer Stamp (face)

c) Bank Manager Stamp (back)

Only in MCB branches

CHEQUES FOR CLEARANCEThere are two stamps put on each cheque, sent for clearing:

a) Crossing Stamp.

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b) Manager Stamp.

CHEQUES IN COLLECTION

When cheques received in clearing are intra city then these are controlled under CC.

First of all, these cheques are recorded in day book then allotted number and then

serial number. Then a Performa is prepared in which Bank on whom was drawn,

cheque number, amount, beneficiary name are recorded. After completing that

Performa cheque is posted along with Performa.

CLEARING Following information is entered in clearing register.

a) Name of favoring party.

b) Name of bank on whom drawn.

c) Branch.

d) Cheque number.

e) Amount.

Clearing is sent after entering in register. In clearing register future date and day is

putted. Cheques and vouchers are then separated and Cheques are sent for clearing.

Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by

giving debits to cheques received in clearing from other branches. At the beginning of

the day clearing return sheet is received.

Vouchers are made if

1. Clearing received is more than clearing delivered then Credit voucher.

2. Clearing delivered is more than clearing received then Credit voucher.

On the same day, credit vouchers sent for clearing are entered on the sheet's credit

side. Cheques are sent to NIFT after taking them on calculator, their total amount

along with total number of instruments. A summary is prepared and sealed after

noting the number of seal in summary.

Telephonic Transfer

DD- Demand Draft

PO- Payment Order

For TT, the account of beneficiary must be there in branch. DD is also prepared and

beneficiary can get payment.

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First of all, Performa is filled by purchasing party along with cheque or cash payment.

When cheque is received it is first posted in computer section in order to check the

balance of account. After posting the bank officer calculate tax if National Tax

number is not there. i.e.

Rs.100000 @0, 1%

More than Rs.40000 @0.4%

Commission and postage charges are also calculated. These are paid in cash or

otherwise by cheque.

ISSUANCE OF CHEQUE BOOK

During my period of internship in NBP, I observed that when an

account is opened then a cheque is issued to the customer for

drawing his money at per rules. Following procedure is adopting for

the issuance of cheque.

When a customer opens an account with the bank, he is provided with cheque book for

withdrawals from account. However, the first cheque book is given to the customer only

when all the required documents are checked. A cheque book contains ten, 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.

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As I have learnt many things during my internship but being specific to our classroom

learning in the organization following are some critics on it:

Financial ManagementFinance has a major role in the banking sector because the transactions being done in this

sector is related to finance and it is the most important player in the banking sector. The

products offered by the Banking and Finance Sector are largely intangible. Thus, efforts to

identify assets are largely focused on critical processes rather than physical assets. Only the

financial management is able to help in this context

Use of risk assessment in the sector:The Banking and Finance Sector has a long-standing and accepted practice of conducting risk

assessments. These assessments also consider vulnerabilities stemming from direct or indirect

threats to the physical and cyber-based operations across the sector.

Challenges and continuous improvement:The evolving nature of the Banking and Finance Sector imposes a challenge on the banking

sector. The Treasury Department and its public and private sector partners must remain aware

of emerging technologies and vulnerabilities that the sector may face to determine whether

the metrics are appropriate for the sector. Another challenge for the sector is addressing and

managing the risks associated with the sector’s interdependencies.

Research and DevelopmentThere should be formed a R&D Committee to further develop plans and programs that would

provide the most significant benefits to the bank for requirements of the financial services

sector an any other sector. In June 2006, this committee issued a list of research challenges

that provide information security professionals with tools for addressing known

vulnerabilities in the sector.

The Marketing Mix in the Banking Sector

Service:The norms of the banking sector have gone beyond to the just selling money to the services

offered to the people. They also are seeking for the good name of their bank by offering

different services to the masses. Besides the services like speed, security and ease they are

also providing the rights of consulting for services.

Price:

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Prices are named differently for different transactions. Banks set their prices according to the

services offered by them. The prices in the banking has names like interest commission and

expense. Price is the sole element of marketing in the banking sector while other creates

expenditures. Elements of marketing mix other than price affect sales volume, while price

affect both sales volumes and profit directly.

Distribution:The most important feature of banking is the persuasion of customer benefiting from services.

Almost every author argue that those features of banking makes personal interactions

between customer and bank obligatory and direct distribution in the sole alternative.

Promotion:It includes following:

Personal Selling:Personal selling is the most preferable way of expanding selling. Personal selling is being

done either face to face in the branch office or the customer representative go to the customer

place. In the former all the employees, chief and the office manager takes part in selling.

Public Relations:

Public relations in banking should provide;

1. Establishing most effective communication system

2. Creating sympathy about relationship between bank and customer

3. Giving broadest information about activities of bank.

The Role of HRM in the Banking SectorHuman resource management plays a very important role in the banking sector as it plays in

the other forms of organization. HR officers manages the employees, decides for the

incentives, promotions, salary and with all this the HR managers motivates the employees.

Downsizing, appraisals and up gradations are being done keeping in view the employees

performance.

Besides these, some other subjects has also got a significant role in the banking sector for

example operations management, business communication, total quality management,

behavior of the consumer etc. These subjects provides the basic values of the business.

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SUGGESTIONS AND RECOMMENDATIONSAlthough 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 my recommendations to the bank would

be as follows:

NBP should become very specific about its competitors, so that it can understand who

its competitor is in the first degree and who is in the second degree. Then the first-

degree competitors should be watched closely

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.

The performance reward linkage should be making 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 NBP should go for computerization rather than

manual work, which is very slow and time, consuming process. In this age NBP 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 NBP are running on manual system and the training of its staff directly improving

their efficiency of work.

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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.

NBP 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 focusing 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. Relations.

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IF I AM THE MANAGER OF FINANCE DEPARTMENT,

WHAT I DO.

This is very important for me if I am In the post of incharge of finance manager the

what I do. This is a very difficult work for finance manager to control and oversee all the

finance of the NBP Branch Layyah. I am a student of BBA what steps are difficult for me to

controlling all dealing about cash and how much problem. I will face during cash related of

finance related.

So if I become a finance manager of NBP Layyah Branch then I follow many different steps to

deal and control all finance transactions.

• I make different types of finance strategies to use the finance is a proper way.

• I also make different plans to control the finance.

• I make different policies according to finance related problem.

• I make proper interest rate to use finance with bank.

• I make different easy rules to extend area of finance.

• I also make policies ad procedures to improve cash department

• I make new and new rules to avoiding finance errors In different accounts.So these are

my some steps that I want to fulfill in the the NBP Layyah Branch as a finance

manager. If I will select as a finance manager then I will try to improve these all skills

and knowledge to improve NBP In Pakistan.

SUGGESSIONS FOR IMPROVEMENT

• Internal Audit Department should check each voucher.

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• Internal Audit Department should conduct monthly audit of accounts and

Submit its report to Chief Executive, General Manager, General Manager Finance and

Manager Accounts.

• No room is available for external auditors in whole group, at least two room should be

arranged permanently for external auditors.

• Accounting Software should also be improved.

• At least one I.T Engineer should be appointed at site Office. Job rotation principle

should be implemented.

• The H/O should be connected through Internet with the site.

• Cost of telephone and transformation of data can be reduced.

CONCLUSION

With Cooperation of all branch members, I have been able to learn and experience many new

things related to the Finance sector and the NBP Layyah Branch workings. I am able to

handle the public with respect to many different workings on many different instances and

can handle many other tasks as well.

Finally I concluded that NBP Layyah Branch is a good organization for a person for his long

term career workings. Overall working and environment of the NBP Layyah Branch is very

comfortable and the staff is very helpful and respectful of each other and it still maintains a

professional environment. Management of the Bank Ltd but by all the organizations. Even

though the people have been sacrificed in the new organizational developments, it is

becoming clear that the true lasting competitive advantage comes through human resources

and how they are managed.

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adeel hance

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