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Internship Report on National Bank of Pakistan
Submitted by: Azeem Ijaz Qureshi.Registration: FA07-BBA-048.
Supervised by: Mr. Awais Rashid.
Department of Management Sciences
COMSATS Institute of Information TechnologyAbbottabad
July 2011
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Internship report on National Bank of Pakistan
Submitted by: Azeem Ijaz Qureshi.
Registration #: FA07-BBA-048.
Supervised by: Mr. Awais Rahid.
This internship report is submitted in partial fulfillment of the requirements for
the degree of Bachelors of Business Administration awarded by the COMSATS
Institute of Information Technology, Abbottabad.
Department of Management Sciences
COMSATS Institute of Information Technology
Abbottabad
July 2011
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Department of Management Sciences
COMSATS Institute of Information Technology
Abbottabad
Approval Sheet
Approval Committee
External Examiner
Mr. _________________________________________Signature_______________
Supervisor
Mr. _________________________________________Signature_______________
Head of Department
Mr. ________________________________________Signature _________ ______
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Dedication
I would like to thank my lovely parents for giving me this opportunity to attend this degree and
supporting me in all my student life. They acted as a backbone and a major reason behind my
accomplishment of this degree. I dedicated this project to my ever-loving parents and all my friends.
Abstract
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For the economic growth and sustainability of country financial institutions play a
very important and vital role. The bank circulates and deals in money. Such institution
are also required to fulfill other financial needs such as provision of place to deposit
money, serving for the utilities and also advancing money in order to facilitate the
need s of house holders and the businesses. Banking has always been the main field of
interest for most of the business. In this report the financial position of NBP and its
Khola Kehal branch Abbottabad has been thoroughly studied and analyzed.
The methodology that was used was available resources by the organization, like
website, annual reports, publicly available data, etc. Also, interviews with some
employees and observation methods were used. The data collection was an exhaustive
process and all secondary resources were used like, Internet, Books, Reports, Articles
etc were used. In the first chapter introduction to the report, background of study,
scope of the study, merits, limitation and scheme of the study are given.
The report covers the history of NBP bank, introduction to the organization, its
background, role and functions of organization, its core values, and miscellaneous
topics related to Finance department of NBP Bank. Finally it is concluded that the
bank is functioning in a proper & systematic manner, but need more competitive
strategies, long term debts, & outside creditors, creditors should provide the funds to
meet the SBP policies to have the maximum branches.
Table ofContents
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Internship Report on National Bank of Pakistan ..................................i
Table of Contents ..............................................................................vi
Acknowledgement .............................................................................ix
Abbreviations .....................................................................................x
Executive Summary ..........................................................................xi
Chapter 1 ...........................................................................................1
Introduction to the Report ..................................................................1
1.1 Background of the Study: ............................................................1
1.2 Purpose of the study: ...................................................................1
1.3 Scope of the study:......................................................................1
1.4 Limitations of the Report:............................................................1
1.5 Merits of the Report: ....................................................................2
1.6 Methodology of the Report: .........................................................2
1.6.1 Primary Data: .........................................................................2
1.6.2 Secondary Sources: ...............................................................2
1.7 Scheme of the Report ..................................................................2
Chapter 2 ...........................................................................................4
Introduction to National Bank of Pakistan ..........................................4
2.1 Evolution of Banking: ...................................................................4
2.2 Historical background of National Bank of Pakistan.....................4
2.2.1 History ...................................................................................4
2.2.2 Present status ........................................................................5
2.2.3 Credit rating ...........................................................................5
2.2.4 Awards and achievements .....................................................5
2.2.5 Auditors .................................................................................5
2.2.6 Registrats &Share Registration Office ..................................6
2.3 Branch Network ...........................................................................6
2.3 Organizational Structure ..............................................................7
...........................................................................................................7
2.4 Vision and Mission statements .....................................................8
2.4.1 Vision statement ....................................................................8
2.4.2 Mission statement ..................................................................8
2.5 Objective of NBP ..........................................................................8
2.6 Core values ..................................................................................8
2.7 Corporate profile ..........................................................................82.8 Company information ..................................................................8
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2.8.1 Board of Directors ..................................................................8
2.8.2 Registered Head office ...........................................................9
2.8.3 Audit Committee ....................................................................9
2.8.4 Legal Advisors ........................................................................9
2.8.4 Branches all over the country ................................................9
2.9 Corporate banking .......................................................................9
2.10 Retail banking ..........................................................................10
2.11 Special assets management ....................................................10
2.13 Operations ...............................................................................10
2.14 Risk management ....................................................................11
2.15 Credit to AGRO .........................................................................11
2.16 Treasury Management .............................................................11
2.17 Human resource function .........................................................12
2.18 Information technology ............................................................12
2.19 Organization Brach Structure Chart .........................................12
Chapter 3 .........................................................................................13
Products and services at NBP Khola Kehal Branch ...........................13
3.1 Departments in NBP Khola Kehal Branch Abbottabad ...............13
3.1.1.1General banking ................................................................13
3.1.1.2 Inquiring ............................................................................133.1.1.3 Deposit .............................................................................13
3.1.1.4 Cash department ..............................................................13
3.1.1.5 Utility bills .........................................................................14
3.1.1.6 Remittance department ...................................................14
3.2 Product Lines: ...........................................................................15
3.2.1 NBP Premium Aamdani: ......................................................15
3.2.2 NBP Premium Saver .............................................................16
3.2.4 NBP Saibaan: ......................................................................163.2.5 Home Purchase (House or Apartment) ................................17
3.2.6 Home Construction .............................................................17
3.2.7 Home Renovation ...............................................................17
3.2.8 Purchase of Land and for Construction ..............................17
3.2.9 Re-Financing (Balance Transfer Facility (BTF) ..................... 17
3.2.10 NBP Advance Salary: ............................................................18
Chapter 4 ........................................................................................19
Analysis of NBP ................................................................................19
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4.1 Horizontal Analysis .....................................................................19
4.2.1 Interpretation of Horizontal Analysis of Income Statement 19
4.2.2 Horizontal Analysis of Balance Sheet ..................................21
Interpretation: ...............................................................................21
4.3 Vertical Analysis: .......................................................................21
4.3.1 Vertical Analysis of Balance Sheet: ......................................22
Interpretation: ...............................................................................23
4.3.2 Vertical Analysis of Income Statement ................................23
Interpretation: ...............................................................................24
4.4 Ratio Analysis .............................................................................24
4.4.1 Liquidity Ratios: ..................................................................24
4.4.2 Leverage Ratios:..................................................................25
4.4.3 Profitability Ratios: ..............................................................25
4.5 Ratio Analysis Interpretation:.....................................................25
4.6 Profitability Ratios:.....................................................................26
4.7 SWOT analysis: .........................................................................27
4.7.1 Strengths: ...........................................................................27
4.7.2 Weaknesses: .......................................................................28
4.7.3 Opportunities: ......................................................................29
4.7.4 Threats: ...............................................................................30Chapter 5 .........................................................................................31
Conclusion and Recommendations ..................................................31
5.1 Recommendations: ...................................................................31
5.2 Conclusion ..................................................................................32
References: ......................................................................................34
Acknowledgement
God Almighty is worthy of all acknowledgments, whose grace has no limits and who
gave me the strength and will to complete this report. I have no words to express my
heartiest sense of gratitude to my supervisor, Mr. Awais Rashid for his supervision,
contribution, intellectual guidance, constructive suggestion, valuable time, patience
and wise comments to make this report possible. I highly appreciate the help and
cooperation of the manager Saeed NBP Khola Kehal branch Abbottabad for his
support and collaboration. I also acknowledge the help of all government departments
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and public in collecting information / documents / data for this report. The last but not
least, I would feel incomplete without thanking to my parents who always pray for my
brilliant success and bright future.
.
Abbreviations
SBP State Bank of Pakistan.
NBP National Bank of Pakistan.
NAFA National Fullerton Asset management limited.
PKR Pakistani rupee.
UK United Kingdom.
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KSA Kingdom of Saudi Arabia.
DD Demand draft.
D Deposits.
Executive Summary
National bank of Pakistan was established under the national bank of Pakistan
ordinance, 1948. The bank provides all sorts of banking services to the government
and private sectors. It acts as an agent of the central bank where ever the state bank of
Pakistan is does not have its own branches. The bank is scheduled as the commercial
bank and it is principally engaged in the business of banking as defined in the banking
companys ordinance 1962.The report is based on my six weeks internship program in
National Bank of Pakistan. The methodology reported for collection of data isprimary as well as secondary data. The biggest source of information is my personal
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observation while working with staff and having discussion with them. Formally
arranged interviews and discussions also helped me in this regards. National Bank of
Pakistan has a network of 1,250(1287) if we include foreign branches) domestic
branch and 16248 employees. National Bank of Pakistan is also the first bank which
started Foreign Exchange Co in order to facilitate the general masses, regularize the
inflow of the foreign money and control, the undesirable blackmailing of the private
exchange companies in the country.
Departments are Deposits Department, Remittances Department, Clearing
Department, Advances Department, and Foreign Exchange Department Financial
Statement Analysis is the scales due to which we can measure the financial position of
a firm. The creditors are interested in the liquidity of the firm, to meet their short term
obligations and also having the ability for payment of these obligations.. The investors
in a companys common stock are interested with present and expected future earning
of the firm and the stability of these earnings.
The analyses are used to measure firms performance over time Common size
analysis expresses comparison in percentage. It has the following types Vertical
analysis compares each amount with a base amount selected from the same year.
Horizontal analysis compares each amount for a selected base year or we take each
item of base year as 100% and compare with other items.
There are some ratios that are used for the analysis of the banks these are Earning
assets to total assets, Return on earning assets, Interest margin to average earning
assets, Loan loss coverage ratio, Equity capital to total asset, Deposit times capital,
Loan to deposits.
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. SWOT analysis is
a situational which includes strengths, weaknesses, opportunities and threats that
affect organizational performance.
The finding and recommendations regarding national bank of Pakistan Khola Kehal
branch Abbottabad is concluded after sound observation and realistic approach.
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Chapter 1
Introduction to the Report
1.1 Background of the Study:
National Bank of Pakistan is the largest bank nation wide with its large number of
deposits and branch network. Its branches in foreign countries are also high in number
than other banks that are working in Pakistan that developed my interest to do
internship in bank.
1.2 Purpose of the study:
Purpose of doing internship is requirement of degree program for BBA requirement
where students are supposed to do our the practical analysis of what they studied in
their specialization subjects and all these analysis are then supposed to be submit in
the form of report.
1.3 Scope of the study:
Time frame in which bank branch is studied by me is of six weeks in that time period
I study management of the bank and learn how they practice different financial
aspects. From accounts section of bank branch no data is mentioned here in report as
this is against the policy of NBP but an overall financial statement analysis is there
which is going to be helpful for any one who is interested in studying analysis for
NBP.
1.4 Limitations of the Report:
No one is entitled to retrieve its result for any purpose except authorized bank
personnel for official purpose. Internship students are not allowed to retrieve and use
any confidential material for any purpose, as it is against the bank policy. This study
was conducted in accordance with the objectives of the study. The study may not
include broad explanations of facts and figures due to the nature of the study, the
problem of short time period also makes the analysis restricted as one cannot properly
understand and thus analyze all the operations of a bank.
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1.5 Merits of the Report:
This report consists of financial analysis of NBP from 2007 to 2010. Inside financial
analysis the horizontal and vertical analysis are done along with analysis of ratios that
makes the report helpful for any student to study. Other than that this report consists
of the SWOT analysis which is done on the basis of the ratios calculations. Personal
recommendations and conclusions are also in the report. .
1.6 Methodology of the Report:
1.6.1 Primary Data:
This report involves the following type of data:
Interviews with employees and Customers
Personal observation during work
1.6.2 Secondary Sources:
In secondary source I have taken information for report writing from annual reports of
the National Bank. Some information from the following
Annual reports
Manuals
Journal
Magazine
Internet
1.7 Scheme of the Report
This internship report is divided into five chapters as:
Chapter one includes background, purpose, scope, limitations, methodology,
and scheme of the report.
Chapter two includes background and history of banking in Pakistan,
background of NBP, roles, functions and branches.
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Chapter three includes Financial position and products & services provided by
National Bank of Pakistan and its Branch located at Abbottabad
Chapter four includes financial and non financial analysis.
Chapter five includes recommendations of the study based on the analysis in
the previous chapters.
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Chapter 2
Introduction to National Bank of Pakistan
2.1 Evolution of Banking:
Banking practices have been recorded back to 2004 B.C, in one form or other.
Sometimes these activities were carried out in Temples, on Benches and sometimes in
shops of Goldsmiths. But these activities were the beginning of Banking or it were the
early stages of modern day Banking.
Interestingly no exact origin of the word Bank exists, and different authors have
attributed it to different origins. Some researchers say that it is derived from German
word Back which means Joint Stock Fund and later on in Italy this word became
Bank. However no exact origin exists and this shows how old these practice are.
G.Crowther in his famous book, An outline of money has traced that commercial
banking has three ancestors i.e., Merchants, the Goldsmiths and Moneylenders.
These merchants, goldsmiths and money lenders performed the functions of accepting
of deposits/gold, issuance of Notes, Payment of interest and charging of interestingetc. this was the beginning of modern banking.
2.2 Historical background of National Bank of Pakistan.
2.2.1 History
National Bank of Pakistan was established on November 9, 1949 as a result of
deadlock with India and the devaluation of the Indian rupee where Pakistan much to
India and British consternation did not follow suit. The objective of establishing the
bank was to provide much needed financing to the agricultural sector, particularly to
facilitate the badly hit jute trade. The bank then Into on to become the sole agent of
the State Bank of Pakistan for handling provincial and federal government receipts
and payments.
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2.2.2 Present status
The bank maintained its position as the largest bank deposit holder in Pakistan. The
integration of corporate and investment banking efforts in enabling the bank to offer
wider products range besides making it a major player in debt and equity market. The
Bank has one joint venture in U.K. and one wholly owned subsidiary in Kazakhstan.
The U.K. Operations of the Bank Ire merged with that of United Bank Limited to
form a Joint Venture Bank namely Pakistan Investment Bank (PIB) incorporated in
U.K. NBP has 45% of share holding while the balance 55% is with UBL.
The bank is witnessing major developments in the field of technology. For facilitating
the customers round the clock payment of utility bills, around 100 kiosks are beingestablished in the important cities. In addition, branches covering 80% business are
converted into fully automated on real time basis.
2.2.3 Credit rating
The JCR_VIS credit rating agency, as affiliate of Japan's credit agency has awarded
credit rating AAA rating on September 20,2002 which is more than stable in whole
banking industry of Pakistan and is still maintained.
2.2.4 Awards and achievements
Bank of the year in year 2010.
President of Pakistan trophy in year 2010.
Banker by ranking in top 500 banks of the world in year 2008.
Best return of capital in year 2007.
Best foreign exchange bank in year 2005.
Best bank of the year in 2004.
2.2.5 Auditors
Anjum Asim Shahid Rahman.
Chartered Accountancts
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2.3 Organizational Structure
Source: Self made.
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2.4 Vision and Mission statements
2.4.1 Vision statement
To be recognized as a leader and a brand synonymous with truest, highest standards
of service quality, international best practices and social responsibility.
2.4.2 Mission statement
NBP will aspire to the values that make NBP truly the Nations Bank by
institutionalizing a merit and performance culture, creating a distinctive brand identity
by providing the highest standards of services, adopting the best international
management practice. Maximizing stakeholders value along with discharging
responsibility as a good corporate citizen of Pakistan and countries where they
operate.
2.5 Objective of NBP
To accomplish their mission their current objective is to maximization of
stakeholders value by offering modern information technology in their product and
services. Expanding globally and promoting domestically Islamic banking sector as
per stated by State Bank of Pakistan.
2.6 Core values
The NPB organization is based on:
1. Maximize value for stakeholders
2. Maintain their credit ratings.
3. Acquire more and more deposits and provide the latest transaction facilities.
2.7 Corporate profile
NBP has got the 1200+ branches nation wide if foreign branches include in it then
they are more than 1287. Where the State Bank of Pakistan does not exist there they
act as its agent and NBP is also holder for NIT securities.
2.8 Company information
2.8.1 Board of Directors
S. Ali Raza Chief Executive / President.Dr. Waqar Masood Khan. Director.
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Kamran Y. Mirza Director.
Rizawan A. Kehar Director.
A.Razzak Tabba Director.
Sheikh Humayun Sayeed Director.
Qazi Faez Isa Director.
2.8.2 Registered Head office
I.I.Chandigard Road, Karachi, Pakistan.
2.8.3 Audit Committee
Tariq Kirmani Chairman
Nazrat Bashir Member
Haniya Shahid Naseem Member
2.8.4 Legal Advisors
Mandviwala & Zafar
Advocated & Legal Consultants
2.8.4 Branches all over the country
2.9 Corporate banking
Mr. Hussain played key role in developing and implementing strategies for NBP in
both private and public sector including transactions that involve multilateral financial
institutions. NBP strategic work in corporate banking is majorly upon planning and
profit/ loss management, people and business management in a matrix organization,
corporate governance and compliance credit corporate banking expertise, credit and
risk assessment/ approval of corporate, financial institutions and country risk
exposure.
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2.10 Retail banking
The NBP move consumer loan segment and witnessed growth in advance salary
and cash in gold products. These products are of low risk and will provide good
opportunity in the years ahead. During 2010 a new business current account productwas launched with a view to cater to specific needs of business community across
various stratas. Despite adverse macroeconomics factors and competition, the bank
increased its deposits by 14% with low cost current saving deposits increasing by
20%.
2.11 Special assets management
NAFA is non banking finance company with a license to perform asset management
services as per the NBFC rules, 2003. NBP invest in NAFA as its core is investment
management, floating of mutual funds, investment portfolio management services that
they are providing to NBP.
2.12 International operations: NBP opened its first branch in Riyadh, Saudi Arabia
in August 2010. They will add great value to the overseas franchise of the bank and
will focus capturing the large volume of trade business, home remittances and Hajj/
Umrah operations. In addition the banks subsidiary in Kazakhstan further opened two
more branches, NBP presence in Central Asia increased to 6 branches while having
total overseas presence including Almaty subsidiary at 26 branches.
2.13 Operations
NBP is migrating from fee based mode to free of charge remittance services and for
this prupose NBP has now 20corresponding partners across the globe. This helps
overseas Pakistanis in hassle free remittances to their loved ones in Pakistan in realtime. On the other hand the beneficiaries have the SMS alert facility of their
remittances and can collect their payments from any of the NBP branches in the
country as a matter of recognition, remittance services. They finally believe
aggressively that marketing strategies and have effectively utilized various marketing
moods to promote their remittance services both in overseas and domestic markets.
They are continuously striving to join hands with new overseas partners to expand
their reach across the globe.
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2.14 Risk management
Risk management function has been restructured and made independent of all risk
taking and approving units. Its functional reporting is to the Board of Directors and
administrative reporting to the President of the bank. An executive risk managementcommittee has been established to emphasize on the banks commitment to a robust
risk management process and risk culture. In compliance with the risk management
guidelines, issued by SBP, an operational risk management unit has been established.
An operational loss database, risk & control self assessment (RCSA) exercise and key
risk indicators (KRIs) are being developed and will subsequently be implemented. A
separate credit risk architecture unit has also been formed for formulation/ proposition
of credit risk strategies, policies, credit assessment methodologies, credit
portfolio/sector management. A dedicated Basel II unit is responsible for managing
the Basel II project in close coordination with the consultant and with the active
support & involvement of other functions across the bank.
2.15 Credit to AGRO
Credit proving to AGRO is based on proper strategic work that consists of provision
of reliable infrastructure for expansion of existing agriculture financing making itcapable to respond to the customer need. Encouraging agriculture development
through capacity building of the farmers for optimum utilization of credit for farm and
non farm needs.
2.16 Treasury Management
Treasury is the hub where the local currency and foreign exchange books of the bank
are managed. Our treasury plays a pivotal role to ensure optimum profitable
utilization of the banks funds both in foreign exchange and money market. The bank
emerged as a leading performer in the foreign exchange market in terms of
profitability and maintains the status as one of the best foreign exchange banks and an
efficient and active market maker both in foreign exchange and money markets. NBP
ws declared the Number 1 Primary Dealer (PD) by State Bank of Pakistan for the
year 2010. The bank is also the recipient of best Foreign Exchange award by Global
Finance for the year 2008, 2005 and 2004 which is a testament of the banks superior
expertise in this area.
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2.17 Human resource function
The whole NBP family comprises of committed and dedicated members with passion to serve
in their respective functional areas. The Bank has challenging work environment where merit
and performance help the individuals to explore their true potential. As a caring employer the
Bank enables the employees to excel and grow in highly congenial employment conditions
and culture. The career path is full of challenges and opportunities. The Bank has absolutely
open culture where members share and communicate freely.
2.18 Information technology
National Bank of Pakistan is embarking on industry leading technology initiatives to
upgrade and implement new application solutions to meet the challenges of growing
competition and enhanced business requirements. This will be a transformational
change which will greatly improve operational efficiency and controls, customer
service and facilitate launch of new banking products. During the year, in order to
facilitate Pakistan Army, we installed 139 ATMs at various army nominated locations
across the country providing automated financial facility to the troops at their own
places. Besides this we are expanding our ATM network and new machines are being
installed at various locations. The bank also has started nationwide online
connectivity program to connect all the branches to communicate with each other.
This will be a milestone in establishing online network and a pre requisite for core
banking implementation.
2.19 Organization Brach Structure Chart
Manager
Accountant /Information
Cashier
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Chapter 3
Products and services at NBP Khola Kehal Branch
3.1 Departments in NBP Khola Kehal Branch Abbottabad
For proper functioning of all the activities, the bank has divided its operations into
different departments that would be discussed next. These departments are as under:
1. General banking departments.
2. Account department.
3. Remittance department.
4. Advances department.
3.1.1.1General banking
Inquiry.
Remittances.
Deposits.
Cash Department.
Utility Bills (gas, electricity, telephone).
3.1.1.2 Inquiring
Account balance.
Remittance information.
New account opening.
Cheque book.
Other products and drafts information.
3.1.1.3 Deposit
Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rates
borrowed and lend from their spread or gross profit. Therefore, I can rightly state that
deposits are the blood of the banks which cause the body of an institution to get to
work.
3.1.1.4 Cash department
The following books are maintained in cash department:
Receiving Cashier Books
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Token Book
Paying Cashier Book
Scroll Books
Cash Balance Book
When cash is received in counter, it is entered in the Scroll Book and Receiving
Cashier Book. At the close of the day, these are balanced with each other. When the
cheque or any negotiable instrument is presented at counter for payment, it is entered
in the Token Book and Token is issued to the customer. The Token and the cashier
make entry in the Payment Book and the payment is made to payee. At the close of
the day, the Token Book and paying Cashier Book is balanced. The consolidated
figure of receipt and payment of cash is entered in the Balance Book and drawn
closing balance of cash.
This is very important department because cash is the most liquid asset and mostly
frauds are made in this department, therefore, extra care sis taken in this department
and no body is alloId to enter or leave the area freely. Mostly, cash area is grilled and
its door is under the supervision of head of that department. Officer checks the books
maintained in this department.
3.1.1.5 Utility bills
All branches of NBP are providing this facility for the residential near branch
surrounding the facility to pay out their utility bills that are of gas, electricity, and
telephone at cashier section.
3.1.1.6 Remittance department
Basic function of remittance department is to transfer out funds in the following two
ways:
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Local remittance: Local remittance means to transfer the funds among domestic
branches by telegraph, pay order etc.
Foreign remittance: Foreign remittance is used to transfer funds from foreign
branches of NBP to national branches. It is much more quicker than the westernunion.
3.2 Product Lines:
NBP products lines are mostly divided into three board Deposit Related, Advances
Related and Remittance related.
Deposit Related
Products
Advances Related
Product
Remittance Related
Products
NBP Premium Aamdani NBP Karobar NBP Pakremit
NBP Premium Saver NBP Saibaan
NBP Advance Salary
3.2.1 NBP Premium Aamdani:
National Bank of Pakistan in its saving account launch a premium product in which at
a minimum deposit of 200 thousands they are offering a returns at 11% yearly. So
this scheme in saving accounts is yielding more returns then as compare to the other
banks. In this scheme investment period is four year. Main features of this scheme
are listed below
Amount of investment required from Rs. 20,000/- to Rs. 5,000,000
investment period is 5 years
Free Demand Draft, Pay Order and NBP Online Aasan Banking
Free Cheque Book / NBP Cash Card (ATM + Debit)
Financing facility available upto 90% of the deposit value
Profit paid every month as follows:
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Period Profit Rates
1st year 7.50%
2nd year 8.50%3rd year 9.50%
4th year 10.50%
5th year 11%
3.2.2 NBP Premium Saver
Unprecedented Safety Unprecedented Return
Minimum saving balance of Rs, 20,001 and a maximum balance of Rs. 300,00. Free
NBP cash card. Two debit withdrawals in a month and no limit number of deposit
transactions. Profit calculated monthly and paid on half yearly basis. Free NBP cash
card convinces of NBP online Aasan Banking. Two debit withdrawals in a month and
no limit on deposits. Profit calculated on monthly and paid on half yearly basis.
3.2.3 NBP Karobar
Tele-Centre In NBP karobar scheme with a minimum down payment of 10% of asset
price a loan up to 200,000 are given. Tenure of NBP karobar scheme is 1 to 5 years.
Life and disability insurance is paid by government of Pakistan. In this scheme the
age limit eligibility is betIen 18 to 45 years. NBP karobar provide self-employment in
the following categories:
a. NBP Karobar Utility Store
b. NBP Karobar Mobile Utility Store
c. NBP Karobar Mobile General Store
d. NBP Karobar Transport
e. NBP Karobar PCO
f. NBP Karobar
3.2.4 NBP Saibaan:
NBP Saibaan is another brand of NBP which provide services of Home Finance
Home Renovation, home construction purchase of land plus Construction, Balance
Transfer Facility (BTF)
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3.2.5 Home Purchase (House or Apartment)
Product Detail
Financing Amount Upto 35 Million
Financing Period 3 to 20 Years
Debt to Equity 85:15 (Maximum)
3.2.6 Home Construction
Product Detail
Financing Amount Upto 35 Million
Financing Period 3 to 20 Years
Debt to Equity 85:15 (Maximum)
3.2.7 Home Renovation
Product Detail
Financing Amount Upto 15 Million
Financing Period 3 to 15 Years
Debt to Equity 70:30 (Maximum)
3.2.8 Purchase of Land and for Construction
Product Detail
Financing Amount Upto 35 Million
Financing Period 3 to 20 Years
Debt to Equity 70:30 (Maximum)
3.2.9 Re-Financing (Balance Transfer Facility (BTF)
Product Detail
NBP also provide facilty that if some one have Home Finance Facility outstanding
with another bank he or she can transfer to NBP through a hassle-free process.
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3.2.10 NBP Advance Salary:
National bank of Pakistan provide urgent funds facility to its employees of federal,
semi governments, and corporate employees by NBP Advance Salary Scheme,
which allow to draw three months salary in one go. This facility is available to
permanent employees of the:-
Federal and Provincial governments
Semi-governments, autonomous, semi-autonomous, local bodies, and
government corporations
Other corporations approved by NBP
No guarantee, collaterals, or insurance is required to avail this scheme. NBP gives the
facility to repay the excessive amount within 1 to 36 months. The procedure is very
easy, just fill the application form and choice betIen 1 to 36 months and take your
NBP Advance Salary within 3 days after submitting your form.
NBP Advance Salary , the leading personal loan product of the country, is
maintaining its inimitability ever since it was launched. This was only possible due to
its swift growth and remarkable loan disbursement of over 118 billion.
Employees can avail up to 20 net take home salaries with easy repayment
installments. Its hassle free acquisition with no prior formalities and easy availability
in a short turn around time are attributed as the most distinguishing features of the
product. The product is offered countrywide
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Chapter 4
Analysis of NBP
Financial Analysis is actually assessment of the effectiveness with which funds
(investment and debt) are employed in a firm, efficiency and profitability of its
operations, and value and safety of debtors' claims against the firm's assets. It employs
techniques such as 'funds flow analysis' and financial ratios to understand the
problems and opportunities inherent in an investment or financing decision.
For Financial Analysis of National Bank of Pakistan I collected four latest years data
of the bank from annual reports of bank and arrange them in a single table. Then
Vertical and Horizontal Analysis of Income Statement and Balance Sheet are done
and at the end Ratio Analysis and results interpretation
4.1 Horizontal Analysis
The process of dividing each expense item of a given year by the same expense item
in
the base year is called horizontal analyses. This analysis allows for the exploration of
changes in the relative importance of expense items over time and the behavior of
expense items as sales change. Horizontal analysis is the analytical way to determine
financial performance from the last year/quarter to the current year/quarter. When
using this analytical way of determination you will be able to figure out the dollar
amount change and the percentage change as Ill. This is important because it will
show how a bank actually is doing compared to what it looks like in the statements
4.2.1 Interpretation of Horizontal Analysis of Income Statement
For the interpretation of horizontal analysis I take some main items of income
statement and then interoperated with time frame. Their results are shown in the table
below.
2006 2007 2008 2009 2010
Markup Revenue 100% 150.09% 180.87% 231.34% 251.22%
Markup Expense 100% 132.09% 231.40% 382.58% 399.34%
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Provision for Advances 100% 125.70% 432.96% 451.35% 470.40%
Provision for Investments 100% 288.53% 151.80% 246.30% 312.66%
Bad debts written off 100% 22.90% ------- ------- ----------
Net Markup Interest 100% 131.37% 123.36% 126.67% 139.47%
NON-MARKUP
INCOME
Fee & Commission 100% 124.72 160.86% 181.26 195.63%
Dividend Income 100% 168.27 167.82 111.74 115.82%
Exchange income 100% 110.63 329.20 251.16 142.36%
Other income 100% 352.91 700.27 310.51 259.84%
Total non-markup income 100% 129.49 84.67 202.56 235.19%
Total Income 100% 130.79 139.17 73.02 120.65%
NON-MARKUP
EXPENSE
Admin Expenses 100% 119.79 161.92 201.13 216.325
Other Provisions 100% 8.71 376.96 313.05 197.25%
Other Charges 100% 329.59 922.96 508.88 490.55%
Interest Expenses100% 118.73 169.83% 204.06% 245.21%
Profit Before Tax 100% 138.06 147.25 120.74 140.43%
Profit After Tax 100% 133.93 149.76% 81.12% 110.69%
If I see in the horizontal analysis, however the bank is improving its performance as
earning of the bank is increasing in each next year but its is not maintaining the same
rate of change, same pattern is observed in net interest earnings. On the other side
percentage of the bank interest expense is decreasing in later years. But banks net
earning after taxation and ultimately earning per share is showing negative sign in the
later years, it is showing that bank profitability is decreasing in later years as
compared to the previous.
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4.2.2 Horizontal Analysis of Balance Sheet
Interpretation:
In the horizontal analysis of Balance Sheet, same trend is observed as it was seen in
horizontal analysis of income statement. In the later years rate of growth in total
assets is decreasing as compared to previous years is very low. On the other hand,
banks total liabilities are also decreasing in the later years. Ultimately due to decrease
in the rate of assets and liabilities nets assets growth rate is also decreasing.
4.3 Vertical Analysis:
A method of financial statement analysis in which each entry for each of the three
major categories of accounts (assets, liabilities and equities) in a balance sheet is
21
ASSETS 2006 2007 2008 2009 2010
Cash and balance with
treasury bank
100% 133.25% 149.59% 162.68% 172..69%
Balance with other banks 100% 120.80% 123.61% 91.57% 80.25%
Lending to Financial Inst 100% 131.82% 105.19% 63.14% 55.12%
Investments 100% 134.50% 108.81% 138.63% 142.47%
Advances 100% 126.58% 153.61% 176.77% 182.29%
Other assets 100% 274.19% 256.15% 265.98% 280.91%
Operating fixed assets 100% 129.46% 186.08% 247.76% 290.81%
Total Assets 100% 131.93 141.54 163.44 180.55%
LIABILITIES
Bills payments 100% 405.58% 586.91% 610.00% 635.44%
Borrowings 100% 123.50% 462.02% 517.05% 560.29%
Deposits and other accounts 100% 127.72% 134.85% 156.75% 170.55%
Finance lease 100% 201.78% 151.98% 256.35% 269.31%
Other liabilities 100% 131.67% 168.77% 179.89% 196.53%
Deferred tax liabilities 100% 114.23% ----- ----- ----------
Total liabilities 100% 128.68% 142.51
%
164.31% 170.11%
SHAREHOLDERS EQUITY 100% 153.44
%
135.13
%
157.68% 169.54%
Share capital 100% 137.99% 151.79% 182.16% 190.32%Reserves 100% 127.66% 161.41% 183.59% 197.21%
Inappropriate profit 100% 234.06% 270.77% 316.66% 325.16%
T. liabilities & T.Equity 100% 153.44% 135.13% 157.68% 170.29%
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represented as a proportion of the total account. The main advantages of analyzing a
balance sheet in this manner are that the balance sheets of businesses of all sizes can
easily be compared. It also makes it easy to see relative annual changes in one
business.
4.3.1 Vertical Analysis of Balance Sheet:
22
ASSETS 2006 2007 2008 2009 2010
Cash & balance with treasury
bank
12.38% 12.45% 13.02% 12.26% 13.21%
Balance with other banks 6.40% 4.92% 4.68% 3.00% 2.90%
Lending to F. I 3.62% 2.82% 2.094% 2.07% 1.90%
Investments 22.03% 27.66% 20.8895 23.04% 29.35%
Advances 49.77% 44.70% 50.50% 50.33% 52.69%
Other assets 4.27% 4.07% 5.4% 6.28% 7.25%
Oper fixed assets 1.52% 3.40% 2.96% 2.66% 2.35%
Total Assets 100% 100% 100% 100% 100%
LIABILITIES
Bills payments 1.67% 0.93% 1.24% 1.12% 1.05%
Borrowings 1.84% 1.43% 4.94% 4.79% 4.60%
Deposits & other accounts 79.02% 77.66% 76.42% 76.93% 76.10%
Finance lease 0.00% 0.00% .003% .0045% 0.60%
Other liabilities 4.19% 4.05% 4.84% 4.47% 4.20%
Deferred T L 0.04% 0.67% - - -
Total liabilities 87.10% 84.74% 87.47% 87.34% 87.29%
SHAREHOLDERS EQUITY
Share capital 1.12% 1.07% 1.09% 1.14% 1.19%
Reserves 2.19% 2.07% 2.43% 2.40% 2.50%
Inappropriate profit 5.05% 5.95% 6.41% 6.49% 6.70%
Revaluation 4.55% 6.12% 2.57% 2.26% 2.13%
Total equity 12.90% 15.26% 12.52% 12.66% 12.80%
T.Liabilities & T.Equity 100% 100% 100% 100% 100%
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Interpretation:
In the vertical analysis of Balance sheet the results show that the major portion in the
accounts is of advances that is ranging frown 40-50% through out this period. This
shows that bank has invested major portion of its assets in advances, which are a
source of rent for the banks. Bank is also maintaining sufficient cash balance for its
daily transactions. The results show that in liabilities account major portion is of
deposits and it should be in every bank. In equity section results show that in later
share banks profit is increasing.
4.3.2 Vertical Analysis of Income Statement
2006 2007 2008 2009 2010
Markup Revenue 100% 100% 100% 100% 100%
Markup Expense 31.63% 33.50% 33.19% 50.66% 65.89%
Gross Profit 68.37% 66.50% 60.80% 49.33% 59.60%
Provision for Advances 6.97% 9.34% 17.38% 14.16% 11.30%
Provision for Investments 1.61% 0.08% 0.61% 0.77% 0.96%
Bad debts written off 0.01% 0.08% ------- ------- -------
Net Markup Income 62.99% 57.16% 42.80% 34.36% 32.65%
NON-MARKUP INCOME
Fee and Commission 13.93% 13.41% 13% 11.45% 10.00%
Dividend income 6.56% 6.45% 4.72% 2.46% 3.12%
Exchange income 3.02% 2.06% 6.5% 3.884% 4.32%
Other Income 1.42% 0.29% 2.04% 0.708% 0.901%
Total non-markup income 27.58% 26.78% 26.93% 58.77% 62.35%
Total income 90.58% 83.95% 69.74% 28.60% 32.54%
NON-MARKUP
EXPENSES
Admin Expenses 30.48% 28.09% 29.8% 29.8% 33.86
%
Other provisions 0.04% 0.33% 1.22% 1.22% 1.24%
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Other charges 0.47% 0.03% 0.95% 0.95% 0.97%
Total non-markup expense 30.92% 28.40% 32% 32% 36%
Profit Before Tax 59.66% 55.49% 37.74% 37.74
%
40.12
%
Provision for Taxes 21.06% 17.85% 12.37% 12.37
%
12.40
%
Profit After Tax 38.60% 37.64% 25.36% 25.36% 27.20%
Interpretation:
In vertical analysis of income statement each element is divided by the total earnings.
The result show that interest expense are appearing as a major part in the income
statement, as value of markup expense is ranging from 30-40% through out this
period. Very percentage of bad debts approximately to 0% show s that banks
recovery rate of loan is very high. If I see at the percentage value of total expenses, I
see that its value is decreasing showing that bank is efficiently decreasing its total
expenses. It contributes positively to the banks profitability. Net income is showing
some mixed (increasing and decreasing) trend. Overall, the results show that banks
performance is satisfactory.
4.4 Ratio Analysis
4.4.1 Liquidity Ratios:
Liquidity ratio, expresses a company's ability to repay short-term creditors out of its
total cash. The liquidity ratio is the result of dividing the total cash by short-term
borrowings. It shows the number of times short-term liabilities are covered by cash. If
the value is greater than 1.00, it means fully covered. Various liquidity ratios and their
formulas are given below.
Ratio 2007 2008 2009 2010
Current Ratio 1.0 .49 0.43 0.55
Cash Ratio 0.388 .21 0.20 0.19
Quick Ratio .89 .46 0.56 0.69
position.. NBP is in position to pay all necessary payments as there is a continuous
improvement in NBPs liquidity position. Although in banks it is difficult to keep
these ratios up because banks mainly depend upon short term liabilities but still
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NBPs improvement is appreciated. High current ratio of NBP gives a measure of
protection or cushion for lenders investor and depositors of bank.
4.4.2 Leverage Ratios:
company's leverage relates to how much debt it has on its balance sheet, and it is
another measure of financial health. Generally, the more debt a company has, the
riskier its stock is, since debt holders have first claim to a company's assets. This is
important because, in extreme cases, if a company becomes bankrupt, there may be
nothing left over for its stockholders after the company has satisfied its debt holders.
Description: If I look at the Debt ratio and Debt/Equity ratio it is clearly
understandable that the bank has greater portion of debts in its capital structure. Still
management need to change its capital structure and higher portion of equity may
result in better results, as it is present in times interest earned ratio which is showing
that increase in the equity is putting healthy effect in returns.
4.4.3 Profitability Ratios:
Ratio 2007 2008 2009 2010
Return on Asset (ROA) 2.7 1.89% 1.96 2.23
Return on Equity (ROE) 20.8 15.08% 13.20 16.21
Ratio 2007 2008 2009 2010
4.5 Ratio Analysis Interpretation:
In the ratio analysis firstly, the results of liquidity ratios show that the bank is
maintaining sufficient amount of liquids assets to meet its daily requirement. As the
bank transactions deals with cash, so each bank should maintain high levels of
liquidity to meet its daily requirement. As the liquidity level required in the banking
industry is high as compared to the other sectors. The negative value of net working
capital is negative showing that the value of current liabilities is greater than current
assets.
25
Ratio 2007 2008 2009 2010
Debt Ratio .84 .87 0.90 0.93
Debt/Equity Ratio 5.55 6.98 7.02 7.19
Times Interest Earned
Ratio
2.17 2.94 3.14 3.26
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Coming towards the debt ratios, the results depict that the level of debt in the capital
structure of the bank is very high. So, high level of debt is not too good. Bank should
reduce it level of debt. This high level may some how contribute to the high
profitability, As it is generally observed that highly levered firms are highly
profitable.
In the profitability ratios, the results are satisfactory bank is having positive Earning
per Share (EPS). Return on Assets, return on equity and return on investment are
showing that returns are satisfactory.
4.6 Profitability Ratios:
Profitability ratios are used to assess a business' ability to generate earnings as
compared to expenses over a specified time period. Profitability ratios measure how
Ill a company is performing by analyzing how profit was earned relative to sales, total
assets and net worth. D&B uses three key financial business ratios to measure a
companys efficiency:
Return on Sales (Profit Margin) Ratio This ratio measures the profits after
taxes on the year's sales. The higher this ratio, the better prepared the business is
to handle downtrends brought on by adverse conditions. This ratio is calculated
using the following formula:
Net Profit After Taxes Net Sales
Return on Assets (ROA) Ratio This ratio shows the after tax earnings of
assets and is an indicator of how profitable a company is. Return on assets ratio is
the key indicator of the profitability of a company. It matches net profits aftertaxes with the assets used to earn such profits. A high percentage rate will tell you
the company is Ill run and has a healthy return on assets. This ratio is calculated
using the following formula:
Net Profit After Taxes Total Assets
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Return on Net worth Ratio This ratio measures the ability of a company's
management to realize an adequate return on the capital invested by the owners in
the company. This ratio is calculated using the following formula:
4.7 SWOT analysis:
The SWOT analysis is an extremely useful tool for understanding and decision-
making for all sorts of situations in business and organizations. SWOT is an acronym
for Strengths, weaknesses, Opportunities, and Threats. Information about the origins
and inventors of SWOT analysis is below. The SWOT analysis headings provide a
good framework for reviewing strategy, position and direction of a company or
business proposition, or any other idea. SWOT analysis also works Ill in
brainstorming meetings. Use SWOT analysis for business planning, strategic
planning, competitor evaluation, marketing, business and product development and
research reports. Companies can also use SWOT analysis exercises for team building
games. See also PEST analysis, which measures a business's market and potential
according to external factors; Political, Economic, Social and Technological. It is
often helpful to complete a PEST analysis prior to a SWOT analysis.
4.7.1 Strengths:
National Bank of Pakistan is government owned bank that is why Pakistani
nation has a trust on the bank that their deposits are secured. Due to this
reason the deposits of the banks are increasing with the passage of time. As I
see from four year table of income statement because of this NBP has
advantage that all the government employees have salary account in NBP
which help to maintain huge portion deposits without any marketing efforts
beside this all the government payments and remittances are made through
this bank which is also a huge and unique advantage to this bank. National
Bank of Pakistan is enjoying with deposit of different Govt. organization
like Pakistan Railways, PIA, WAPDA, Sui-gas due to agency arrangements.
The solvency of National Bank of Pakistan is considered very good because
it is backed by government finances whenever bank faces the problem of
obligatory and solvency. This is why in general public the rating of National
Bank of Pakistan in term of security is very high.
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National bank of Pakistan is having the largest branch network with in the
country as Ill as beyond the national boundaries which is also a plus point in
the rating of bank. National Bank of Pakistan also having a wide range of
branches in rural areas of Pakistan because of this NBP is havingaccessibility to the funds of people living in the rural areas of the country.
In Pakistan NBP having 1500+ branches and are fully commercials none
other bank in Pakistan have such amount of branches.
Another unique function of National Bank of Pakistan is that it is having
chest branches in the cities where there is no branch of SBP.BSC. These
chest branches also perform most of the functions of State Bank of Pakistan.
To facilitate the distribution of banknotes and rupee coins, the Reserve Bank
has authorized selected branches of scheduled banks to establish Currency
Chests. These are actually storehouses where banknotes and rupee coins are
stocked on behalf of the State Bank. NBP work as agent of State Bank of
Pakistan in which NBP is required to coordinate with other banks.
National Bank of Pakistan is having a comprehensive range of financial
products in order to facilitate the customers so that their all banking needs
could be fulfilled under one branch. NBP having following services to their
account holders.
Credit Cards
Foreign Exchange Bearer Certificates
National Bank Daily Accounts
Travelers Cheques etc.
4.7.2 Weaknesses:
Lack of Implementation of Rules and Regulations due to political
interference. Because National bank of Pakistan is a govt. owned
organization so there is a lack of implementation of rules and regulations
and these deviations from rules and regulations effect on the performance of
the bank.
Administrative expenses of bank are increasing day by day and with huge
amount which effect on income on Profit after tax and earning per share. If I
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see in income statement National bank of Pakistan should focus on
decreasing their administrative expenses.
As I have already mentioned the benefit of have experience staff in National
Bank of Pakistan. But now, here it becomes weakness of the bank becauseexperience is nothing without education. Old staff is not so much educated
and skilled with the use of new technology. National Bank of Pakistan needs
fresh blood to handle new invented technologies in the field of banking. So
this is one of weaknesses of the bank
National Bank of Pakistan one of weakness is that its bad debts are
increasing from previous years. Bad debts are defined as A Bad debt is an
amount owed to a business or individual, for which there is zero probability
of collection. This is not to be confused with Doubtful debt which is and
amount for which payment is unlikely. At National Bank of Pakistan
increases in Bad Debts may be due to political interferences.
Union has strong impact on performance of National Bank of Pakistan. Most
of time employee union tries to impact on the rules and regulations and
recruitment policies of banks. They try to impose their orders on top
management and top management is unable to punish the violators and
shrieks.
4.7.3 Opportunities:
The basis need of the consumer such as housing, transportation and other
durable goods are not adequately financed by the banks. So by initiating
these services, the bank can enjoy with more funds. National bank of
Pakistan need to uplifts their services of consumer banking like home
building finance, student loans, Kissan Loans and Credit card services so as
to get more potential of funds.
For National Bank of Pakistan Opportunities also exist to invest in foreign
markets NBP can enjoy handsome return its funding base by investing in
capital markets in the foreign countries.
Until recently the bank perceived as purely commercial banking entity so in
order to expand its business the bank may start investment banking by
investing in the portfolio of handsome return.
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NBP by establishing new branches in foreign countries can expand its
business and can enjoy with the profit.
National bank of Pakistan can enhance its operation by launching internet
banking facilities, online transaction, Internet money transfers and manyothers. Online banking (or Internet banking) allows customers to conduct
financial transactions on a secure website operated by their retail
or virtual bank, credit union or building society..
4.7.4 Threats:
The no. of banks in Pakistan is increasing with the passage of time. So due
to poor working condition and poor customer service it may be possible
NBP will lose its market share in future.
In our country, the rate of inflation is increasing along with the
unemployment. So due to the increase in price of the products, the savings of
the nation is decreasing with the passage of time. So it is the threat for the
banking sector. In the future, the deposits of the bank will decrease.
On NBP Govt. policies have strong impact. A slight change in Govt. policies
may affect the performance of the bank. The bank has to work with in the
regulation frame work.
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Chapter 5
Conclusion and Recommendations
5.1 Recommendations:
Based on the SWOT analysis of National bank of Pakistan it is observed that the bank
like other public sector industries has not been showing up to mark performance.
There is long list of weaknesses that is given on the previous pages. Most of them are
going along since long time and that all efforts made to remove them have not
succeeded. On the basis of SWOT analysis of bank the following suggestions and
recommendations are given for future enhancement.
Bank should try to get rid of political interferences and influences in
recruitment and policy making so that bank should be able to compete in the
industry with prudent and strong policies. National Bank of Pakistan should
adopt the policy of equal opportunity employment as it is observed that
announced jobs are quota based.
When giving the loan to client, the Bank must carefully analyze the past six
months transaction history of the borrower. This will help in judging thedealing behavior and financial status of the client. In most cases, this thing
is not properly done and it is the major reason of default of many clients.
The Bank should try to give more loans to the small borrower as the past
history and Analysis shows that most of the loans given to the corporate
borrower have converted into bad debts.
National Bank of Pakistan should cover its administrative expenses as a lot
of portion of bank profits are eaten by these expenses. Policies and
guidelines should be made so as to count down these expenses.
Better and comprehensive long term and short term planning should be made
to forecast the future needs
Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according to their
requirements. Foreign experts can also be called for this purpose.
Every year some of the employees should be sent for training to other
countries and employees from other branches should be brought here. More
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reading material should be brought / provided in the reference Room, it
should be relevant and its purpose should be to educate the employees with
the advance studies in their field. The employees should be provided the
opportunities to attend and participate in seminars and lectures on banking.
This is a routine practice that in order to give personalized services to the
customer, bank staff tries to fill all the columns of AOE with their own
handwriting, which is wrong. AOE must be filled in by the customers.
Bankers should avoid filling in the AOE because it can create problem if the
address, title of account or any other information provided by the customer
has not been written properly. Customer may be affected or he may claim
that this information was not provided by him, but if AOE is filled by the
customer then banker cannot be held responsible for any incorrect
information provided by the customer.
5.2 Conclusion
If I have to express my experience of internship in National Bank Khola Kehal
Branch Abbottabad I would briefly say that National Bank is a good Organization in
the way that anybody can join it for his/ her long-term career. Overall working
environment is comfortable. Management of branch cares a lot of its employees and
considers them as the Asset of bank. Behavior of senior executive of bank is very
polite and they are caring about the individuals career and their growth.
However management is very demanding about the targets but good reward at the
achievement of assigned targets is awarded. Employees at Bank are quite efficient. As
the branch is renovated and new employees are hired, its employees have to bring
their bank among the list of good banks. Therefore, they work more than their
working hours and it is all according to their will. It also shows their loyalty,
commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from customer
side is a new idea and that is working very well in National Bank. All the customers
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are asked to fill a suggestion form and the standards of the bank are improved through
them.
Prioritizing its product portfolio in line with its corporate and consumer needs and
wants the bank is committed to develop products that give more value to its customers
in both the sectors. In bank, the work is done on computers as well as manually. All
the entries are made in computer. Balance is fed into the computer. This increases
efficiency of the bank. During my internship training I gathered information regarding
how a successful bank operational aspect decorticated with the practical.
I found my internship training at National Bank Khola Kehal Branch Abbottabad to
be a very rewarding experience. The training was beneficial because it helpful me to
aware a real life working environment.
So far my learning is concerned; all 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 query in my
mind. Besides their ever going activities they never get irritant by my questioning. I
had made an honest efferent to present the working & operation at Branch in simplest
way. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working
with experienced cooperative & intelligent staff.
33
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8/6/2019 n.b.p final
47/47
References:
Annual Report of NBP 2010.
Annual Report of NBP 2009.Annual Report of NBP 2008.
Annual Report of NBP 2007.
Van Horne, J.C and J.M Wachowiez ; Fundamentals of financial management 11th
edition.
Gerald I. White, CFA, Ashwinpaul C.Sondhi, Ph.D., and Dov Fried, Ph.D; The
analysis and use of financial statements 3rd edition.
Banking statistics of Pakistan. State bank of Pakistan Dept, of Statistics 5th 256.
(Karachi), N. B. o. P. (1966). "The history of the National Bank of Pakistan." pp. 25-
31
Gibson, Charles H, (2002), Financial Statement Analysis, Prentice Hall International
Corporation, 7th Edition.
Consult with NBP Employees
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