Virtual University of Pakistan Evaluation Sheet for Internship Report

Spring 2009

MISI619: Internship report (MIS) Credit Hours: 3

Name of Student: MUHAMMAD IMRAN

Student’s ID: mc060400994

Evaluation Date: __________________________

Supervisor: _______________________________

Marking scheme

Total marks

Obtained marks

Report writing

70 42.5

Presentation & Viva voce

30

Grand total 100

Marking Scheme for Internship Report WritingMarks Marks obtained

Prefatory part Title page Acknowledgement Executive summary Table of contents

5

4.5Introduction of the sector/organization

Brief introduction of the organization’s business sector

Overview of the organization Organizational structure

10

7

Detailed description of internship program Plan of your internship program Training program

106

Organizational analysis Structure of the MIS Department Functions of MIS Department

OR Structure of the department you worked

in (Other than MIS) Feasibility Report of computerizing the

department you worked in (Other than MIS)

15

10

Critical analysis SWOT analysis Conclusion Recommendations

209

Internship Report Write Up 5 3Referencing and Annexure 5 3

Total 70 42.5

Different parts of the internship report are not in proper sequence as required.You did not provide the critical analysis and conclusion.You did not provide the overview of the competitors.You have included irrelevant data in departmentalization.Other comments have been mentioned in the report.

Internship Report onNational Bank of Pakistan

Main Branch Bahawalnagar

PRESENTED BY:

MUHAMMAD IMRAN

Class: MBA-MIS

STUDENT ID : mc060400994

Session: Spring 2009

Internship Date: Nov 11th to Dec. 22nd 2008

Report completed: June 27th 2009

VIRTUAL UNIVERSITY OF PAKISTAN

DEDICATION

I dedicate to my Dear Parents & my respectable teachers whose assistance is always with me. And I personally do great respect by heart.

Acknowledgement

Here very thanks to Almighty Allah whose guidance helped me to be trained in a top class organization, NBP, as well as to complete this report in a very limited time.

My thanks also to young, dynamic, congenial, and qualified staff of NBP who never let me alone in different situations related to my internship. Without their humble help, it was not easy.I am thankful to the Bank Manager,Muhammad Arshad Nagra,NBP Nain Brach Bahawalnagar.He guide me during my intership from Nov.11th to Dec.22nd 2008.

Executive summary

This report is about my internship program with NATIONAL BANK. In this comprehensive report, I have discussed about every major aspect of the bank, which I observed and perceived during my internship program. In this report you will find the detail about the bank right from its incorporation to the current position. Along with it, the processes, policies and procedures of the bank are also discussed in detail.

As the main purpose of internship is to learn by working in practical environment and to apply the knowledge acquired during the studies in a real world scenario in order to tackle the problems using the knowledge and skill learned during the academic process.

In this report the detailed analysis of the organization has been done and the financial, technical, managerial and strategic aspects have been evaluated to analyze the current position of the organization.

This report also contains my perceptions about the employee’s satisfaction, motivation level and the working environment of the organization.

Table of contents should be on separate page.TABALE OF CONTENTS:

Sr.# Contents Page #1. INTRODUCTION 6

2. EVOLUTION OF BANKS IN PAKISTAN 73. PRESENT STATUS AND HISTORY 84. Banking Reforms 1972 9

5. FINANCIAL POSITION 12

6. PRODUCTS OF NATIONAL BANK OF PAKISTAN 15

7. SAIBAAN SCHEME 16

8. FOREIGN CURRENCY 17

9. EXPORT DEPARTMENT 19

10. IMPORT DEPRTMENT 19

11. DIFFERENT SCHEMES CONDUCTED BY NBP 21

12. ORGANIZATIONAL STRUCTURE 22

13. Plan of My internship program 27

14. DEPARTMENTALIZATION 29

15. DEPARTMENTATION OF NBP BAHAWALNAGAR MAIM BRANCH.

43

16. General observation during Training Program 46

17. MANAGEMENT INFORMATION SYSTEM (MIS 54

18. Structure of the MIS Department 57

19. Functions of the MIS Department 58

20. SWOT ANALYSIS 59

21. COMPETITIVE ANALYSIS 6322. SUGGESTION: 6523. RECOMMENDATIONS 63

24. References 74

1. INTRODUCTION

Definitions of Bank

“Bank”

"A financial institution, which deals with money and credit. It acceptsDeposits from individuals, firms and companies at a lower rate of Interest and gives at higher rate of interest to those who need them.”

A financial establishment which uses money deposited by customers for investment, pays it out when required, makes loan at interest, exchanges currency, etc.J.W Gilbert in his principles and practice banking defines a banker in these words:

“A banker is dealer in capital or more properly, a dealer in money. He is intermediate party between the borrower and the lender. He borrows of one and lends to another”.The American defined the term banker in a very broad sense as under:

“By banking, we mean the business of dealing in credits and by a ‘Bank’ we include every person, firm or company having a place of business where credits are opened by deposits of collection of money or currency. Subjects to be paid or remitted on Cheques or order, money

is advanced or loaned on stocks, bonds, bullion, bill of exchange, promissory notes are received for discount or sale”.

Scope of Studies As an internee in National Bank of Pakistan the main focus of my study research is on general banking procedures in one of the branches of NBP in MIS environment. These operations include remittances, deposits, advances and foreign exchange.Similarly different aspects of overall of NBP are also covered in this report.

Research Methodology

The report is based on six weeks internship program in National Bank of Pakistan. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.

2.EVOLUTION OF BANKS IN PAKISTAN

There are different opinions that how the word ‘Bank’ originated. Some of the author’s opinion that this word is derived from the word ‘Bancus’ or Banque’, which means a bench. The explanation of this origin is attributed to the fact that the Jews in Lombard transacted the business of money exchange on benches in the market place; and when the business failed, the people destroyed the ‘bench’. Incidentally the word ‘Bankrupt’s said to have evolved from this practice.Some of the authors are of opinion that the word ‘Bank’ is derived from the German word back, which means ‘joint stock fund’. Later on when the German occupied major part of the Italy the word ‘Back’ was italicized into ‘Back’.In fact human left the need of bank when it begins to realize the importance of money as a medium of exchange. Perhaps it where the Babylonian who developed banking system as early as 2000 BC. At that time temples were used as banks because of their prevalent respect. During the rule of king Hamurabi (1788 – 1686 BC) the founder of Babylonians Empire, loans were started being granted for interest. The borrower has to provide guarantee or he had to pledge his goods or valuables. King Hamurabi drew up a code wherein he laid down standards rules for procedures for banking operations by temples and great landowners. Also in Greece, the temples were used as banks, where the people deposited their money and other valuables for safe custody and security. In Europe with the ‘revival of civilization’ (Renaissance) in the middle of twelve century, trade and commerce started expanding and this development compelled the business community to borrow the money from the Hebrew money lenders on high rates of interest and usury. Seeing the great demand, these moneylenders started organizing themselves and bank

started up at the principle seaports of southern Europe. Soon Venice and Geneva became the most important money markets of the time and banking though different from its present form, flourished. What we know as ‘modern banking’ originated in the 14th century in Barcelona National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance 1949. The primary objective of NBP was to purchase jute from the growers in the former East Pakistan and also to perform the commercial banking functions in the country.

National Bank of Pakistan is now the biggest financial institution with assets totaling over Rs.310 billion with 1428 local and 23 foreign branches. The bank is the higher financer in agriculture and commodity operation sector.

As part of the academic requirement for completing MBA (MIS) Master Business Administration of the students are required to under go six/eight weeks of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about National Bank Pakistan. NBP was established in 1949 and since then, it has expended its network, becoming the largest commercial Bank of the country. It offers different products of services to its customers..

3.PRESENT STATUS AND HISTORY

National Bank of Pakistan maintain 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.

MANAGEMENT

An Executive Board composed of six Senior Executives of the Bank and the President who is also the Chief Executive supervises the affairs and business of the Bank.

CAPITAL

The authorized capital of the Bank is Rs.2500 million divided into 100 million ordinary shares of Rs.10 each. After nationalization, all the shares held by persons other than the Federal Government or Corporations i.e., owned and controlled by the Federal Government was considered as transferred and vested in the Government.

BRANCHES

The Bank had a network of 1531branches in the country and 28 branches in foreign countries. These countries are as follows:1) - United States of America2) - United Kingdom3) - France4) - Germany 5) - Africa, Middle East Region6) - Bahrain Obu7) - Asia Pacific Region 8) - Japan9) - Republic of Korea10) - Central Asian States11) - Bangladesh12)-Peoples Republic of China13) -Pakistan.

The main of the study in hand is together relevant information to compile internship report on National Bank of Pakistan.

To observe, analyze and interpret the relevant data competently and in a useful manner. To work practically in an organization. To develop interpersonal communication.

4.Banking Reforms 1972

After the assumption of office by a new government in 1971, may 1972 different reforms were introduced to make the banks more responsive to the requirements of economics growth with social justice. The reforms aimed at bringing about a more purposeful and equitable distribution of bank credit, improving the soundness and efficiency of the banks, and securing greater social accountability of the banking system as a whole.The role of the banking system had been truly spectacular in mobilizing savings of the community and meeting the credit needs of the economy. But at the same time, the banks had generally neglected their role in promoting social justice and had failed to play an effective role in ensuring a wider and more equitable dispersal of the benefits of economic growth. In particular the inter locking of ownership with commercial and industrial interests had led to the misuse of bank resources. There was a heavy concentration of credit in big accounts and in urban area. Credit facilities for agriculture, small business, newly emerging exports and housing had remained obviously inadequate while the banks indulged in capital financing in few selected

business sectors and issued guarantees on behalf of favored clients, term clients, term financing facilities for industry were wholly absent.Under the banking reforms introduced in May 1972 the state bank of Pakistan was accorded wider powers. It was authorized to remove directors or managerial personnel, if necessary and supersede the board of directors of a banking company and appoint administrators during the period of such super session. It was also empowered to nominate directors on the board of every bank. As regard bank directors, it was provided that anyone defaulting in meeting his obligations to bank would forfeit his directorship. Moreover, it was laid down that no person could serve as director of a bank for more than six years continuously. Each bank was required to have a paid up capital of not less than 5 percent age of its deposits to be progressively build up to 10 percent age over a period of time. The banks were also required to transfer 10 percentage of their profit their reserves every years after the reserve became equal to the paid up capital. With a view to diversity the ownership of the banks, the banks were required to raise new capital from the market. Unsecured loans to directors, their families or firms and companies, were totally prohibited. The bank reforms also brought about the establishment of new institutions to achieve new objectives. A national credit consultative was setup under the supervise of the state bank with representation form the government and the private sector. It was assigned the task of determining of economy’s annual credit needs within the safe limits of monetary and credit expansion with reference to the annual development plan. Such a credit plan was to cover the public and private sectors. Alongside the National credit council and Agricultural Advisory Committee was formed to allocate agriculture credit for various purposes, to coordinate the operation or the agriculture credit agencies and to oversee the flow of credit to the designated targets. A standing committee on exports in general and the new emerging exports in particular, was also established. With a view to encourage the banks to extend credit to small borrowers, a credit guarantee scheme was introduced under which the state bank under took to share any bonfire losses incurred by the commercial banks in case of small loans of advances to agriculture.At the same time two financing institutions were established. The people’s Finance Corporation was designed to provide finance to people of small means while the National Development Finance Corporation was setup of finance public sector owned and managed industries and enterprises.

The banking reforms turned to be transitional and interim step and when they were hardly eighteen months old the government nationalized the banking systems, with the following main objectives.

To enable the government to use the capital concentrated in the hands of a few rich bankers for the rapid economic development of the country and the more urgent social welfare objectives.

To distribute equitably credit too different classes sectors and regions. To coordinate the banking policies in various area of feasible joint activity without

eliminating healthy competition among banks.

The act passed for the nationalization of banks is known as the banks Nationalization Act 1974. Thus under this act the state bank of Pakistan and all the commercial banks incorporated in Pakistan and carrying business in or outside the country were brought under government ownership with effect from Jan 1, 1974. The ownership, management and control of all Pakistani banks stood transferred to and vested in the Federal government. The shareholders were provided compensation in the form of federal government bonds redeemable at par anytime within the period of fifteen years. Under the Nationalization act, the Chairman, Directors and Executives of various banks, other than those appointed by federal government were removed from their offices and the central boards of the banks and all local bodies were dissolved. Pakistan banking council was established to coordinate the activities of the Nationalized Commercial banks. At the time of Nationalization on December31, 1973 there were following 14 Pakistani commercial banks with 3323 offices allover Pakistan and 74 offices in foreign countries:

National banks of Pakistan Habib bank limited Habib bank (overseas) limited United bank limited Muslim commercial bank limited Commerce bank limited Standard bank limited Australia bank limited Bank of Bahawalpur limited Premium bank limited Pak Bank limited Sarhad bank limited Lahore commercial limited Punjab provincial co-operative bank limited

The Pakistan banking council prepared a scheme for the recognition of banks. The bank (amalgamation) scheme 1974 was notified in April, providing for the amalgamation of the smaller banks with bigger ones and following the five units in there phases:

National bank limited Habib bank limited United bank limited Muslim commercial bank limited Allied bank of Pakistan limited

The first phase was completed on 30th June. 1974. When the bank Bahawalpur was merged with the National Bank of Pakistan. The premier Bank Limited with Muslim Commercial Bank limited and Sarhad Bank Limited and Pak bank limited and renamed as Allied Bank of Pakistan limited.

The second phase was completed on 31st Dec.1974, when the commerce bank limited merged with the United Bank limited. The third and the final phase were completed on 30th June, 1975 when the standard bank limited was merged with Habib Bank limited.

The nationalization was very smooth and gave very positive results.The number of branches, which stood at 3397 on Dec31, 1973, reached on 7661 by end June 1992. The bank deposits which stood at Rs. 1925 corers at the end 1973 reached the highest mark about 323 corers

5.FINANCIAL POSITION

Different facts and figures of opening balances of the year 2007 about National bank of Pakistan which show the financial position are as under:

CAPITAL STRUCTURENational bank of Pakistan was incorporated with an issued capital of Rs. 15 million.

AUTHORIZED CAPITAL

The bank has now the Authorized Capital of Rs. 25 billion.

SUBSCRIBED AND PAID-UP CAPITALThe Subscribed and Paid-up Capital is Rs. 1.46 billion.

TOTAL DEPOSITSNational bank of Pakistan is the largest commercial bank of the country and has Total

Deposits of Rs. 362.87 billion.

ADVANCES The total Advances stood at Rs. 140.55 billion made by NBP in the form of money at

call and short notices, cash credit, loans for short and long periods.

INVESTMENTSThe total Investment rose to Rs. 143.53 billion. This total Investment includes PTC,

TFC, and securities of Provincial of Federal Government.

PRE-TAX PROFIT The pre-tax profits of NBP have gone up to Rs. 6.05 billion.

AFTER-TAX PROFITThe after-tax profits of NBP have been Rs. 2.26 billion.

TOTAL ASSETSThe Total Assets of NBP are Rs. 432.81 billion which is a great achievement.

TOTAL EXPENDITURESThe Total Assets of NBP are Rs. 26.30 billion which are very less as compared to

previous years’ expenditures.

Interim Balance Sheet

As at September 30, 2008

Cash Flow Statement

For the period ended September 30, 2008

AssetsCash and balances with treasury banksBalance with other bankLendings to financial institutionsInvestmentsAdvancesOperating fixed assetsDeferred tax assetsOther Assets

LIABILITIESBills payableBorrowingsDeposits and other accountsSub-ordinated loansLiabilities against assets subject to finance leaseDeferred tax liabilities – netOther liabilitiesNET ASSETS

REPRESENTED BYShare CapitalReservesUnappropriated profit

Surplus on revaluation of assets- net of tax

CONTINGENCIES AND COMMITMENTSThe annexed notes 1 to 18 from an integral part of these condensed interim financial statements

Note:

67

8

9

10

11

Amounts81490442355435491133533915498353538817052626845166---39607884737976441

949612228251542561499498--2513526752828607493628157318109819123

8969751192503474990802778128125

31690998109819123

Amounts94873249374728322146460021114286834032210025922979--30994965762193593

706190210886063591907435--33554509783130869154645855939116337654

8154319157721244534418869270631

47067023116337654

CASH FLOWS FROM OPERATIONG ACTIVITIESProfit before taxationLess: Dividend income

Adjustments for non-cash chargesDepreciationProvision against non-performing loans and advancesReversal for diminution in the value of investmentsBad debts written off directlyOther provision / write offGain on sale of fixed assentsFinancial charges on leased assets

(increase) / decrease in operating assetsLendings to financial institutionsHeld-for-trading securitiesAdvancesOther assets (excluding advance taxation – net)

Increase / (decrease)in operating liabilities Bills payable BorrowingsDeposits and other accountsOther liabilities

Income tax paid Financial charges paid

Net cash flow from operating activities

CAS FLOWS FROM INVESTMENT AXTIVITIESProceeds from / net investment in available-for-sale securitiesProceeds from sale of held-to-maturity securitiesProceeds from sale of investments in associatesDividend income receivedInvestments in operating fixed assetsSale proceed of fixed assets disposed offNet cash from / (used in) investing activities

CASH FLOWS FROM FINANCIG ACTIMITIESPayments of lease obligationsDividend paidNet cash used in financing activates

Effects of exchange rate changes

Amount190007762651647 16349129

4452256734076(19741)203270373(2940)5979743317523782304

10129261(12676740)(54582705)(6832862)(63963046)

243422016684982(30407937)(2312138)(13600873)

(10282712)(5979)(10288691)(64070306)

54350515(3654448)--2651647(1367412)294051983242

(8419)(6115740)(6124159)

2208636

Amount22180027273257419447453

356070640375(50035)25936170097(589)2653114452720591980

4268063(149579)(5022284)(7935245)(9109045)

(4538848)31457021056733148746718319922

(8302250)(2653)(8304903)21497954

(38720937)1010022201952732574(672686)569(35630263)

(26921)(2827029)(2853950)

154669

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of the periodCash and cash equivalents at the end of the period

(16002587)

131456989115454402

(16831590)

118813121101981531

6.PRODUCTS OF NATIONAL BANK OF PAKISTAN

Retail Product

1. Premium Aamdani Home PageUnprecedented Safety - Unprecedented Return

2. Premium Saver Home PageUnprecedented Safety - Unprecedented Return

3. Karobar Home PagePresident's Rozgar Scheme - Easy financing for self employment

4. Saibaan Home PageAffordable, Flexible & Convenient home financing for all

5. Advance Salary Home PageTake up to 20 Advance Salaries - Affordable Installations from 1 - 60 months

6.Cash Card Home PageOne Card does it all - ATM plus Debit Card in one

7. Investor Advantage Home PageInvest with Confidence - Marginal Finance Facility

8. Cash and Gold Home PageMeet your need for ready cash against your idle gold jewelry with no minimum limits

9. Kisan Taqat Home PageNBP KISAN Taqat

10. Kisan Dost Home PageNBP's affordable agricultural program offers you a wide range of financing

11.Online Home PageKnitting Links - AASAN Banking

12. NBP Helplinefrom 8:30 am to 10:00 pm

7.SAIBAAN SCHEME

NBP SAIBAAN DOCUMENTS FOR SALARIED CLASS

Application form (in original). CNIC copies of the applicant.

Two references CNIC copies.

Photographs of the applicant(06)

Employment card copy.

Appointment letter.

Service Letter / Certificate.

Salary cum service certificate.

Last three Months salary Certificates.

Branch Account’s statement last six months.

Last Three Month Utility Bills

Approved Map

Original property Documents.

Aks Sajra.

Fard Malkiat

Naqal Intiqal

Khasra Verification report

National Evaluation Company’s report.

PT-I

Sale Deed/ Registry.

Processing Fee pay order for Rs.500/=

Fee for Evaluator pay order ( in case of construction Rs.2000/= (in case of Purchase Rs.3000/=

Processing Fee pay for legal opinion order for Rs.1000/=

Borrower Basic Facts Sheet

Confidential Report

ALICO DECLARATION FORM.

NBP SAIBAAN DOCUMENTS FOR BUSINESS CLASS

Application form (in original). CNIC copies of the applicant.

Two references CNIC copies.

Photographs of the applicant(06)

Business Related Documents.

Last three years Business Record.

Branch Accounts statement last one year.

Last three month Utility Bills.

ICIL- Department Verification ( Income Estimation)

Approved Map

Registry / Sale Agreement

Aks Sajra. Fard Malkiat

Naqal Intiqal

Khasra Verification report

NOC

National Evaluation Company’s report.

PT-I

Sale Deed/ Registry.

Processing Fee pay order for Rs.1000/=financing below Rs. 1 Million.

Fee for Evaluator pay order Rs.3000/=financing between Rs. 1 to Rs. 4 Million.

Processing Fee pay for legal opinion order for Rs.6000/= financing above Rs.4 Million.

Fee for Evaluator pay order ( in case of construction Rs.2000/= (in case of Purchase Rs.3000/=

Borrower Basic Facts Sheet

Confidential Report

ALICO DECLARATION FORM.

8.FOREIGN CURRENCYGuaranttee The word guarantee means under taking.

Three parties are involved during the process of Guarantee

Principal (Seller). Guarantor (Bank).

Beneficiary (Buyer).

Outward Remittance The outward remittance is the term which emphasizes that to transfer amount from one country to another country.

The sources used to transfer the amount are Transfer Transactions (TT), Demand Draft (DD).The procedure of outward remittance is initially been undertaken that when account holder fill the request letter. The request letter contain following information are

Request of debit. Amount to be mentioned.

Beneficiary name.

Beneficiary account no.

There is the concept of two accounts are NOSTRO A/C, VOSTRO A/C.Western Union Western Union is the name of Australian Bank which provide facility of providing payment with out wasting time. There are 259 banks in world wide who provide the facility where no bank exist

The amount sent to other place for this we do require certain documents are ID copy name of the person to whom the amount is sent .Then Bank will assign PIN CODE .The amount is send with in 15 minutes. When the receiver go to the bank to receive the amount he had to show his ID COPY or ORIGINAL PASSPORT then the authorize officer will identify through NADRA its identification.

CHARGES

Minimum charges will be received is $20.

Commission will be charged or Rs. 1200.

Inward Remittance In this department the process is contrary to outward remittance the amount from foreign country to the Pakistan. In this case the amount received is in the form of cheque, Pay order etc.

9.EXPORT DEPARTMENT Collection The collection Department is the initial phase of the export department.

First E-Form is to provided to the party .It is given on following criteria

The current account of the exporter should be activated for the issue of the E-Form.

TYPES OF E-FORM

There are four types of form are

Original. Duplicate.

Triplicate.

Quadrapled.

The Banks are involved between the parties .All deals and documentation are made between the banks. The bank of Seller and Buyer contact with their party about the transaction when there is no conflict between the party the process goes on until transaction is completed.

10. IMPORT DEPRTMENT In this department they deal with the following section to process the Import Department.

LC opening. Lodgment.

Retirement of LC.

LC OPENING

Firstly Importer presents the Proforma Invoice to the bank Then Importer will fill the form (IB-8) which cost Rs.100 .Proforma should not be expired.

C&F(exporter will pay ),FOB( Importer will pay shipment charges) should be mentioned on the form. The LC opening application form requires certain documents are

Name and address of the applicant. Name and address of the beneficiary.

Insurance detail.

Nature of LC.

Commodity.

LC LODGEMENT

After LC opening Exporter bank will send document to the Importer Bank for the purpose of LC. Advisory bank is the correspondent bank. In case of any discrepancy found and is accepted then the $50 is charged for further processing. Normally the discrepancy is created after shipment. When the documents are accepted by Importer and Exporter then payment is to be made.

RETIREMENT OF LC

At time of payment or retirement we deal with following Import channel are LC.

Advance Payment. Payment after shipment.

Foreign DD & TT.

LETTER OF CREDIT

LC further categorize in to two things are Sight.Usances.

In case of sight the charges are taken as follows

MARK UP = B.E*Days* 0.4%

1000

In case of Usance the charges are

P&T charges of Rs.400.

Service charges of 0.1%of B.E

Commission is deducted from the party at the time of expiry. When the period is delayed of 1 month then charge 0.1%, if the period is 2 month then charges is 0.2%.FED 5% on total commission

SERVICE CHARGES

The charges of 0.1% of Bill of Exchange is charged. After the period of 15 days then the commission is charged .FED is charged on 5% on commission.

ADVANCE OF PAYMENT

The payment is made to the party in advance to the exporter through bank. The bank also deduct margin from the Importer so that bank could serve itself

SERVICE CHARGES

Minimum commission for the amount less $400.At increase of every $1000 $ is charged.

FED is to be charged of 5%on commission amount.

P&T is charged of Rs.400

11.DIFFERENT SCHEMES CONDUCTED BY NBP National Bank of Pakistan always makes efforts to improve its goodwill in the

general public. It introduces different kind of schemes time to time.

The most popular schemes conducted by NBP are as under:

1 ... ... Hajj Mubarak Scheme

2 ... ... NBP Advance Salary Scheme

3 ... ... Fund Management Scheme

4 ... ... LG TV Scheme

1. HAJJ MUBARAK SCHEME For the convenience of a person with a limited income who desire to perform Hajj, Hajj

Mubarak Scheme is introduced. Moreover, National Bank of Pakistan process the Hajj

applications of thousands of people successfully more than any other bank in Pakistan.

2. NBP ADVANCE SALARY SCHEME

Do you need urgent funds? If yes then head to National Bank of Pakistan and avail “NBP

Advance Salary Scheme”, which allow you to draw three months salary in one go. This facility is

available to permanent employees of the:-

1 ... ... Federal and Provincial governments

2 ... ... Semi-governments, autonomous, semi-autonomous, local bodies, and

government corporations

3 ... ... 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 between 1 to 36 months and take your NBP Advance Salary

within 3 days after submitting your form.

3. FUND MANAGEMENT SCHEME This scheme is offered to corporate under customer and is aimed at providing better rate of

return up to 15% per annum. One of the objectives of the scheme is to develop the secondary

market for government securities.

4. LG TV SCHEME It is the most popular of NBP schemes for people. corporates with LG Appliances

Corporation. If you want a TV set but has not enough money to purchase it then head to NBP,

fill an application form of LG TV Scheme. NBP gives you the facility to pay for the TV set in

smaller installments during a time period of 2 years.

Any one can avail this scheme. Two government employees are required to present the

witness to repay the loan if the applicant is unable to repay the loan or the applicant should have

the Fixed Term Deposit in NBP more worthily than the amount advanced to the applicant and it

should have the duration of more than two years.

12.ORGANIZATIONAL STRUCTURE

In this section four topics are discussed. The major topics of this section are:

1. Management and Organization of a Commercial Bank

2. Senior Management 3. Regional Structure 4. Branch Structure

1. MANAGEMENT AND ORGANIZATION OF A COMMERCIAL BANK

The ownership, management, and control of all the commercial banks were taken over by the Government of Pakistan on January 1st, 1974.

A banking council was formed under the Nationalization Act 1974. The banking council was set up for making policy recommendations to the Federal Government, formulating policy guidelines for the banks and their reorganization.The management and organizational structure of the nationalized banks have uniformity. This management and organizational structure is briefly described as under:

Board of Directors Executive Board Chief Executive Divisional Chiefs Provisional Chiefs Circle Executive Zonal Heads Branch Managers

1.1 Board of DirectorsIn the management of the banks, the board of directors is at the top of the controlling body. Since there are no private share holders now, so there is no general meeting of the share holders and no elected directors. The BOD consists of a nominated President, a Secretary, and 9 other members. The board has limited administrative powers because after the Nationalization Act 1974, most of powers are transferred to the Banking Council and Executive Board.

1.2. Executive BoardThe general direction and supervision of the affairs of commercial banks lies in their respective Executive Boards. An EB also consists of a President, a Secretary, and 9 other members, appointed by the Federal Government. 1.3. Chief Executive

The President of the Executive Board is the Chief Executive. He is the administrative head of a bank and presides over the meetings of Executive Board. 1.4. Divisional Chiefs

In order to improve the management and operation of a bank, it has been split up into a numbers of divisions. Each division of a bank is placed under the supervision and control of Divisional Chief (also called the Senior Executive Vice President or Executive Vice President) 1.5. Provisional ChiefsIn order to improve the performance of banking system, each bank has a Provisional Chief. PC has the powers for sanctioning finance and other credit facilities. Each headquarter is situated in each province e.g. in Lahore, Peshawar, Quetta, and Karachi.

1. 6. Circle ExecutiveEach commercial bank has a number of circles placed directly under the control and supervision of Chief Executive. 1.7. Zonal HeadsEach circle is divided into a number of zones. These zones are administered by Zonal Heads who hold the posts of Vice President or Assistant Vice President. 1.8. Branch Managers Each zone of commercial bank is divided into several branches. The control and supervision of each branch is mostly entrusted to Assistant Vice President or Officer G-II.

Complete organizational hierarchy chart has not been provided.

2.SENIOR MANAGEMENT

R. A. Kaleemi SEVP & Group Chief, Operational GroupMasood Karim SEVP & Grp Chf, Co. & Invst Banking

Grp & Chf Fncl OfficerS. M. Rafique SEVP & Secretary Board of DirectorsDerrick Cyprian SEVP & Group Chief, Special Assets &

Remedial Mngt GroupAmin Akhtar EVP & PSO to the PresidentFarooqul Hassan EVP & Chief President’s Implementation

SecretariatShahid Anwar EVP & Group Chief, Commercial & Retail

Banking GroupSafdar Khawaja EVP & Group Chief, Audit & Inspection

GroupAsif A. Brohi EVP & Group Chief, Strategic Planning &

Eco Research GroupJaved Mehmood EVP & Group Chief, Risk Management

Group

REGIONALCHIEF

EXECUTIVE

M. Nusrat Vohra EVP & Group Chief, Treasury Management Group

Nadeem Dogar EVP & Group Chief, IT Planning & Implementation Group

Dr. Abrar Baig Head of Human Resources Management Department

Uzma Bashir Head of Organization Development & Training Department

3.REGIONAL STRUCTURE

GENERAL GENERAL GENERALMANAGER MANAGER MANAGERAdvances, Legal Planning, Business Administrativeand Recovery Wing Development WingCustomer Services and Implementation of Audit

MESSANGER

4.BRANCH STRUCTURE

MANAGER OG-I ADVANCE

OG-II ADMIN

OG-II OG-II OG-II OG-III SERVICES CASHIER ACCOUNTS

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

GODOWN GODOWN GODOWN GODOWN KEEPER KEEPER KEEPER KEEPER

HEAD MESSANGER

Comments on organizational structure?

13. Plan of My internship programPlan of internship is not according to the format. You did not provide the starting and ending dates of internship program, brief introduction of the branch.Writing an Internship Program Plan

I carefully planed and wrote out my internship program and goals.  The internship program and goals were measured by Bank management team and others in organization. Structuring the internship ahead of time provided me with tangible goals and objectives that enabled me to prove myself for understanding the importance of the organization’s decision-makers and value of a well-developed internship program.In creating my internship program plan, it includes specific ideas, proposals, and logistical information. I constructed my plan based on organization’s needs and resources. The questions that follow many assist me in formulating an internship program and plan.What about general support around the workplace?  Does their organization need an intern to perform administrative and support functions including data entry, answering telephones, filing, etc.? If so, approximately what percentage of the intern’s time will be spent on these activities?

Does the Bank want to give the intern a taste of everything that company does? How will cross-training be structured into the intern’s schedule? 

How much time will need to be devoted to department/area? 

Have employees from each department been designated to mentor the intern on their particular department functions?

Will bank pay the intern? If so, how much?

Where should I do internship? 

Do I have adequate workspace there? 

Where will be the best environment and supportive persons etc.?

Who will have the primary responsibility for the intern?

 Will that person be a mentor or merely a supervisor? 

The assignment of mentor who will work closely with the intern can be essential in creating a successful experience for the organization and then intern. Ideally, the mentor should be someone from the department where the intern is working and who is very familiar with the projects and tasks the intern is working on. This person doesn’t have to be a teacher per se, but should be selected because he or she likes to teach or train and has the resources to do it. If the person you select has never mentored an intern before, providing basic supervision and mentoring guidelines and training may enhance the experience for both the mentor and the intern.

What will the intern be doing?   Be as specific as possible.Interns, like others in the process of learning, need structure so they don’t become lost, confused or bored.

Do you want to plan a program beyond the work you give your interns?  Will there be specific training programs, performance reviews, lunches with executives or social events? Keep in mind that your interns are walking advertisements for your company. If they have a good experience working for you, they’re likely to tell their friends—word gets around. A bad internship, by contrast, can only hurt your chances of attracting good students for next year.

Managing the Internship Starting out

I set up regular contact with the faculty sponsor. I Planed to email (meet) with your professor regularly over the term to discuss activities and review your internship and progress towards your academic learning objectives. At a minimum, plan on keeping in regular touch via email.Arrange regular meetings with site supervisor. It is vital you meet regularly with your site supervisor for direction, feedback, and answers to questions. Ideally this should be weekly, or at least bi-weekly. I completed the required Orientation Check In form. After your first couple of weeks working in your site, complete this form and return it to the Internship Program office. It is very important that you get a solid start in your internship, and this is largely determined by how well you are initially oriented and trained. I used the form as a way to talk with my supervisor to identify areas i need or want additional direction. This communication helps our office identify internships that may warrant a bit more attention early on to help make productive for me. Also, on the form I am asked to note my work schedule so we can begin planning site visits for the middle of the term.

During the internship

I completed the required Evaluation of Intern form. I met with my site supervisor to review, signed and returned this form to the Internship Program office by the requested date. Site visit. The Internship Program Director and/or my faculty sponsor may contacted me to arrange a site visit to meet with me and my supervisor. This is a wonderful chance to discuss how the internship is going and to share some of the work you are doing in the internship. Problems? If, at any point during the internship, I was having problems that were interfering with the quality of the learning experience, I contacted the Internship Program Director for support and assistance.

Finishing up

I completed the required Final Evaluation of Intern form. As I approached the end of the term, met with my site supervisor to review and signed this form and returned it to the Internship Program office. A copy of this is sent to your faculty sponsor who uses it to help determine a final grade for your internship experience.Closure with my host organization I communicated in writing my appreciation to my supervisor and co-workers for the attention and management they provided me during my internship. This is an important professional courtesy and can benefit me in future networking.Closure with my Instructor I arranged a final meeting with my by mail instructor to review the internship, discuss future plans, and submit my required assignment(s) as outlined in my Learning Contract. This must be done prior to the last day of class for the semester so my Instructor has time to submit a grade for your internship.

Irrelevant data has been provided in this section.

14.DEPARTMENTALIZATION

Dividing an organization into different parts according to the functions is called departmentalization. So NBP is divided into Departments.

1. CASH DEPARTMENT

2. CLEARANCE DEPARTMENT

3. ADVANCES DEPARTMENT

4. REMITTANCE DEPARTMENT

5. Department of HUMAN RESOURCE MANAGEMENT

6. DEPOSIT DEPARTMENT: -

7. FOREIGN EXCHANGE/DEPARTMENT:

1. CASH DEPARTMENT Cash department performs the following functions1.1) Receipt The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards.Payments It is a banker’s primary contract to repay money received for this customer’s account usually by honoring his cheques.1.3) Cheques and their Payment The Negotiable Instruments. Act, 1881, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”. Since a Cheque has been declared to be a bill of exchange, it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act, 1881. Therefore, one can say that a Cheque can be defined as an:“An unconditional order in writing drawn on a specified banker, signed by the drawer, requiring the banker to pay on demand a sum certain in money to, or to the order of, a specified person or to the bearer, and which does not order any act to be done in addition to the payment of money”. (Law of Banking by Dr. Hart, p.327).1.4) the Requisites of Cheque There is no prescribed form of words or design of a Cheque, but in order to fulfill the requirements mentioned in Section 6 above the Cheque must have the following.

It should be in writing The unconditional order Drawn on specific banker only Payment on Demand Sum Certain in money Payable to a specific person Signed by the drawer

1.5) Parties to Cheque The normal Cheque is one in which there is a drawer, a drawee banker and a payee, or no payee but bearer.

The Drawer The Drawee The Payee

1.6) Types of Cheques Bankers in Pakistan deal with three types of chequesa) Bearer Cheques Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing.b) Order cheque

These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing. c) Crossed Cheque These cheques are not payable in cash at the counters of a banker. It can only be credited to the payee’s account. If there are two persons having accounts at the same bank, one of the account holder issues a cross-cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque.

1.7) Payment of Cheques It is a banker’s primary contract to repay money received for his customer’s account usually by honouring his cheques. Payment of money deposited by the customer is one of the root functions of banking. The acid test of banking is the receipt of money etc. from the depositors, and repayment to them. This paying function is one, which is the distinguishing mark of a banker and differentiates him from other institutions, which receive money from the public. However the bankers’ legal protection is only when payment is in ‘Due Course’. The payment in due course means payment in accordance with the apparent tenor of the instrument, in good faith and without negligence to any person in possession thereof under circumstances, which do not afford a reasonable ground of believing that he is not entitled to receive payment of the amount therein mentioned. It is a contractual obligation of a banker to honor his customer’s cheques if the following essentials are fulfilled.

Cheques should be in a proper form: Cheque should not be crossed: Cheque should be drawn on the particular bank: Cheque should not mutilated: Funds must be sufficient and available: The Cheque should not be post dated or stale: Cheque should be presented during banking hours:

2. CLEARANCE DEPARTMENT A clearinghouse is an association of commercial banks set up in given locality for the purpose of interchange and settlement of credit claims. The function of clearinghouse is performed by the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated by the SBP. If SBP has no office at a place, then NBP, as a representative of SBP act as a clearinghouse.

After the World War II, a rapid growth in banking institutions has taken place. The use of cheques in making payments has also widely increased. The collection as settlement of mutual obligations in the form of cheques is now a big task for all the commercial bank. When Cheque is drawn on one bank and the holder (payee) deposits the same in his account at the bank of the drawer, the mutual obligation are settled by the internal bank administration and there arises no inter bank debits from the use of cheques. The total assets and total liabilities of the bank remain unchanged.

In practice, the person receiving a Cheque as rarely a depositor of the cheque at the same bank as the drawer. He deposits the cheque with his bank other than of payer for the collection of the amount. Now the bank in which the cheque has been deposited becomes a creditor of the drawer’s bank. The depositor bank will pay his amount of the cheque by transferring it from cash reserves if there are no offsetting transactions. The banks on which the cheques are drawn become in debt to the bank in which the cheques are deposited. At the same time, the creditors’ banks receive large amounts of cheques drawn on other banks giving claims of payment by them.

The easy, safe and most efficient way is to offset the reciprocal claims against the other and receive only the net amount owned by them. This facility of net inter bank payment is provided by the clearinghouse.

The representatives of the local commercial banks meet at a fixed time on all the business days of the week. The meeting is held in the office of the bank that officially performs the duties of clearinghouse. The representatives of the commercial banks deliver the cheques payable at other local banks and receive the cheques drawn on their bank. The cheques are then sorted according to the bank on which they are drawn. A summary sheet is prepared which shows the names of the banks, the total number of cheques delivered and received by them. Totals are also made of all the cheques presented by or to each bank. The difference between the total represents the amount to be paid by a particular bank and the amount to be received by it. Each bank then receives the net amount due to it or pays the net amount owed by it.

2.1) In-Word Clearing Books The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All details of the cheques are recorded in this book. 2.2) Out-Word Clearing Book: The bank uses outward clearing register for the purpose of recording all the details of the cheques that the bank has delivered to other banks.

3. ADVANCES DEPARTMENT

Advances department is one of the most sensitive and important departments of the bank. The major portion of the profit is earned through this department. The job of this department is to make proposals about the loans. The Credit Management Division of Head Office directly controls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms. Credit extensions are the most important activity of all financial institutions, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. Any individual or company, who wants loan from NBP, first of all has to undergo the filling of a prescribed form, which provides the following information to the banker.

3.1) Name and address of the borrower.

Existing financial position of a borrower at a particular branch.Accounts details of other banks (if any).

Security against loan. Exiting financial position of the company. (Balance Sheet & Income Statement). Signing a promissory note is also a requirement of lending, through this note borrower

promise that he will be responsible to pay the certain amount of money with interest.

3.2) Principles of Advances

There are five principles, which must be duly observed while advancing money to the borrowers.

Safety Character Capacity Capital Liquidity Dispersal Remuneration Suitability Forms of Loans Cash Finance Overdraft/Running Finance Demand Financing/Loans

a. Safety Banker’s funds comprise mainly of money borrowed from numerous customers on various accounts such as Current Account, Savings Bank Account, Call Deposit Account, Special Notice Account and Fixed Deposit Account. It indicates that whatever money the banker holds is that of his customers who have entrusted the banker with it only because they have full confidence in the expert handling of money by their banker. Therefore, the banker must be very careful and ensure that his depositor’s money is advanced to safe hands where the risk of loss does not exist. The elements of character, capacity and capital can help a banker in arriving at a conclusion regarding the safety of advances allowed by him. b. CharacterIt is the most important factor in determining the safety of advance, for there is no substitute for character. A borrower’s character can indicate his intention to repay the advance since his honesty and integrity is of primary importance. If the past record of the borrower shows that his integrity has been questionable, the banker should avoid him, especially when the securities offered by him are inadequate in covering the full amount of advance.

It is obligation on the banker to ensure that his borrower is a person of character and has capacity enough to repay the money borrowed including the interest thereon.

c. CapacityThis is the management ability factor, which tells how successful a business has been in the past and what the future possibilities are. A businessman may not have vast financial resources, but with sound management abilities, including the insight into a specific business, he may make his business very profitable. On the other hand if a person has no insight into the particular business for which he wants to borrow funds from the banker, there are more chances of loss to the banker.

d. CapitalThis is the monetary base because the money invested by the proprietors represents their faith in the business and its future. The role of commercial banks is to provide short-term capital for commerce and industry, yet some borrowers would insist that their bankers provide most of the capital required. This makes the banker a partner. As such the banker must consider whether the amount requested for is reasonable to the borrowers own resources or investment.

e. Liquidity Liquidity means the possibilities of recovering the advances in emergency, because all the money borrowed by the customer is repayable in lump sum on demand. Generally the borrowers repay their loans steadily, and the funds thus released can be used to allow fresh loans to other borrowers. Nevertheless, the banker must ensure that the money he is lending is not blocked for an undue long time, and that the borrowers are in such a financial position as to pay back the entire amount outstanding against them on a short notice. In such a situation, it is very important for a banker to study his borrower’s assets to liquidity, because he would prefer to lend only for a short period in order to meet the shortfalls in the wording capital. If the borrower asks for an advance for the purchase of fixed assets the banker should refuse because it shall not be possible for him to repay when the banker wants his customer to repay the amount. Hence, the baker must adhere to the consideration of the principles of liquidity very careful.

f. Dispersal The dispersal of the amount of advance should be broadly based so that large number of borrowing customer may benefit from the banker’s funds. The banker must ensure that his funds are not invested in specific sectors like textile industry, heavy engineering or agriculture. He must see that from his available funds he advances them to a wide range of sector like commerce, industry, farming, agriculture, small business, housing projects and various other financial concerns in order of priorities.Dispersal of advances is very necessary from the point of security as well, because it reduces the risk of recovery when something goes wrong in one particular sector or in one field.

g. Remuneration A major portion of the banker’s earnings comes form the interest charged on the money borrowed by the customers. The banker needs sufficient earnings to meet the following:Interest payable to the money deposited with him.

Salaries and fringe benefits payable to the staff members.

Overhead expense and depreciation and maintenance of the fixed assets of the bank. An adequate sum to meet possible losses. Provisions for a reserve fund to meet unforeseen contingencies. Payment of dividends to the shareholders.

h. Suitability The word “suitability’ is not to be taken in its usual literary sense but in the broader sense of purport. It means that advance should be allowed not only to the carefully selected and suitable borrowers but also in keeping with the overall national development plans chalked out by the authorities concerned. Before accommodating a borrower the banker should ensure that the lending is for a purpose in conformity with the current national credit policy laid down by the central bank of the country.

i. Forms of Loans In addition to purchase and discounting of bills, bankers in Pakistan generally lend in the form of cash finance, overdrafts and loans. NBP provides advances to different people in different ways as the case demand.

j. Cash Finance This is a very common form of borrowing by commercial and industrial concerns and is made available either against pledge or hypothecation of goods, produce or merchandise. In cash finance a borrower is allowed to borrow money from the banker up to a certain limit, either at once or as and when required. The borrower prefers this form of lending due to the facility of paying markup/services charges only on the amount he actually utilizes. If the borrower does not utilize the full limit, the banker has to lose return on the un-utilized amount. In order to offset this loss, the banker may provide for a suitable clause in the cash finance agreement, according to which the borrower has to pay markup/service charges on at least on self or one quarter of the amount of cash finance limit allowed to him even when he does not utilize that amount.

k. Overdraft/Running Finance This is the most common form of bank lending. When a borrower requires temporary accommodation his banker allows withdrawals on his account in excess of the balance which the borrowing customer has in credit, and an overdraft thus occurs. This accommodation is generally allowed against collateral securities. When it is against collateral securities it is called “Secured Overdraft” and when the borrowing customer cannot offer any collateral security except his personal security, the accommodation is called a “Clean Overdraft”. The borrowing customer is in an advantageous position in an overdraft, because he has to pay service charges only on the balance outstanding against him. The main difference between a cash finance and overdraft lies in the fact that cash finance is a bank finance used for long term by commercial and industrial concern on regular basis, while an overdraft is a temporary accommodation occasionally resorted to.

l. Demand Financing/Loans When a customer borrows from a banker a fixed amount repayable either in periodic installments or in lump sum at a fixed future time, it is called a “loan”. When bankers allow

loans to their customers against collateral securities they are called “secured loans” and when no collateral security is taken they are called “clean loans”.The amount of loan is placed at the borrower’s disposal in lump sum for the period agreed upon, and the borrowing customer has to pay interest on the entire amount. Thus the borrower gets a fixed amount of money for his use, while the banker feels satisfied in lending money in fixed amounts for definite short periods against a satisfactory security

4. REMITTANCE DEPARTMENT Remittance means a sum of money sent in payment for something. This department deals with either the transfer of money from one bank to other bank or from one branch to another branch for their customers. NBP offers the following forms of remittances.

Demand Draft Telegraphic Transfer Pay Order Mail Transfer

4.1) Demand Draft Demand draft is a popular mode of transfer. The customer fills the application form. Application form includes the beneficiary name, account number and a sender’s name. The customer deposits the amount of DD in the branch. After the payment the DD is prepared and given to the customer. NBP officials note the transaction in issuance register on the page of that branch of NBP on which DD is drawn and will prepare the advice to send to that branch. The account of the customer is credited when the DD advice from originating branch comes to the responding branch and the account is debited when DD comes for clearance. DD are of two types.

Open DD: Where direct payment is made. Cross DD: Where payment is made though account.

NBP CHARGES FOR DD5 Up to Rs. 50,000/- is Rs 50/- only Over Rs. 50,000/- is 0.1%

4.2) Pay Order Pay order is made for local transfer of money. Pay order is the most convenient, simple and secure way of transfer of money. NBP takes fixed commission of Rs. 25 per pay order from the account holder and Rs. 100 from a non-account holder.

4.3) Telegraphic Transfer Telegraphic transfer or cable transfer is the quickest method of making remittances. Telegraphic transfer is an order by telegram to a bank to pay a specified sum of money to the specified person. The customer for requesting TT fills an application form. Vouchers are prepared and sent by ordinary mail to keep the record. TT charges are taken from the customer. No excise duty is charged on TT. The TT charges are:Telegram/ Fax Charges on TT = Actual-minimum Rs.125.

Cable telegram transfer costs more as compared to other title of money. In cable transfer the bank uses a secret system of private code, which is known to the person concerned with this department and branch manager.

4.4) Mail Transfer When the money is not required immediately, the remittances can also be made by mail transfer (MT). Here the selling office of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. Debiting to the buyer’s account at the selling office and crediting to the recipient’s account at the paying bank make the payment under this transfer. NBP taxes mail charges from the applicant where no excise duty is charged. Postage charges on mail transfer are actual minimum Rs. 40/- if sent by registered post locally Rs.40/- if sent by registered post inland on party’s request.

5. Department of HUMAN RESOURCE MANAGEMENT Human Resource plays a vital role in the success of every service organization. They interact between man and machine. Their attitude can win or loose the customer. The positive attitude could only be created in a conducive environment, which can make the staff dedicated towards the organization and its objectives. In reality the man is more important than machine as it is the human which could get maximum out of machine to keep a happy customer. However, most organizations give little importance to this very important asset.Various aspects related to human resource of National Bank of Pakistan are critically examined in the following text:

5.1) Selection & Recruitment Although the Bank believes in merit but in practice the selection of employees is not done on merit. Most of the employees are low educated. This shows that candidates with some strong family background or political pressure are given preference in recruitment and qualified candidates are sometimes left behind.

5.2) Job for Life Like the employee of public sector organizations in Pakistan, the employees of NBP also enjoy their job for life. Since there is no risk of early retirement or redundancy in rank, they do not perform with their full potentials. This is one redundancy in rank, they do not perform with their full potentials, and this is one of the reasons responsible for the low productivity of the employees of the Bank.

5.3) Performance Appraisal The performance of employees of the Bank are appraised though their annual confidential reports at the end of each year. This has become an outdated method of performance appraisal and no longer used due to the following reasons:

The performance of employees is evaluated after quite a long time. Element of subjectivity is involved in this method. Employee’s participation is not ensured in the process of evaluation. Objectives of employee’s are not quantified.

5.4) Inter Personal Relationship Modern management acknowledges human resources as one ‘of the most important assets of an organization. But by their very nature, human beings are also the most unpredictable. Where a number of persons work together, interactions among them, of necessity, will lead to conflicts and NBP is no exception. Most interpersonal conflicts in NBP can be traced back to the following major heads.

Lack of Communication Lack of communication is for the biggest reason for conflicts. Not only it is due to the failure to send a massage but to an interpretation given to the

massage by the receiver is different from that intended.

5.5) Diversity in Values Diversity in values, perceptions, cultural background and life-style is another reason responsible for inter personal conflicts in NBP. Different values and perceptions about the same issue, event or personality hinder understanding. When things come to such a pavement, therefore, interpersonal conflicts are generated.The dominant trend in all modern industrial societies of the world is merit and expertise, which helps promote cohesion and reduce conflicts. But the feudalistic mindset is still very strong in our set up and there is no tradition of tolerance for differing viewpoints. Hence, interpersonal conflicts are generated.

5.6) Corruption Our social acceptance of corruption gives rise to corruption at every level of social and organizational set up. Corruption involves financial embezzlement, favoritism, nepotism, cronyism and other number of such practices. All these cause resentment that keep building up and lead to conflict sooner or later. In the past few years, some cases of frauds have happened in different branches. The reasons can be linked with the employee dissatisfaction of NBP.

5.7) Discipline & Authority Maintaining discipline and implementation of authority (tables) in letter and spirit is the key to success of any organization. In NBP, The authority tables are not strictly maintained. Line managers are not fully equipped with the authority with no vertical or horizontal interference.

6.) DEPOSIT DEPARTMENT: -

It controls the following activities:

A/C opening. Issuance of cheque book. Current a/c Saving a/c Cheque cancellation Cash

6.1) Account opening The opening of an account is the establishment of banker customer relationship. Before a banker opens a new account, the banker should determine the prospective customer’s integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. Preliminary investigation is necessary because of the following reasons.

Avoiding frauds Safe guard against unintended over draft. Negligence. Inquiries about clients.

There are certain formalities, which are to be observed for opening an account with a bank. Formal Application Introduction Specimen Signature Minimum Initial Deposit Operating the Account Pay-In-Slip Book Pass Book Issuing Cheque Book

6.1.1) Qualification of Customer The relation of the banker and the customer is purely a contractual one, however, he must have the following basic qualifications.

He must be of the age of majority. He must be of sound mind. Law must not disqualify him.

The agreement should be made for lawful object, which create legal relationshipNot expressly declared void.

6.1.2) Types of Accounts Following are the main types of accounts

Individual Account Joint Account Accounts of Special Types Partnership account Joint stock company account Accounts of clubs, societies and associations Agents account Trust account Executors and administrators accounts Pak rupee non-resident accounts Foreign currency accounts

6.2 Issuing of cheque book:

This deptt issue cheque books to account holders.Requirements for issuing cheque book

The account holder must sign the requisition slip Entry should be made in the cheque book issuing book Three rupees per cheque should be recovered from a/c holder if not then debit his/her

account.

6.3 Current account These are payable to the customer whenever they are demanded. When a banker accepts a demand deposit, he incurs the obligation of paying all cheques etc. drawn against him to the extent of the balance in the account. Because of their nature, these deposits are treated as current liabilities by the banks. Bankers in Pakistan do not allow any profit on these deposits, and customers are required to maintain a minimum balance, failing which incidental charges are deducted from such accounts. This is because the depositors may withdraw Current Account at any time, and as such the bank is not entirely free to employ such deposits.Until a few decades back, the proportion of Current Deposits in relation to Fixed Deposits was very small. In recent years, however, the position has changed remarkably. Now, the Current Deposits have become more important; but still the proportion of Current Deposits and Fixed Deposits varies from bank to bank, branch to branch, and from time to time.

6.4) Saving account

Savings Deposits account can be opened with very small amount of money, and the depositor is issued a cheque book for withdrawals. Profit is paid at a flexible rate calculated on six-month basis under the Interest-Free Banking System. There is no restriction on the withdrawals from the deposit accounts but the amount of money withdrawn is deleted from the amount to be taken for calculation of products for assessment of profit to be paid to the account holder. It discourages unnecessary withdrawals from the deposits. In order to popularize this scheme the State Bank of Pakistan has allowed the Savings Scheme for school and college students and industrial labor also. The purpose of these accounts is to inculcate the habit of savings in the constituents. As such, the initial deposit required for opening these accounts is very nominal.

6.5) Cheque cancellation: This deptt can cancel a cheque on the basis of;

Post dated cheque Stale cheque Warn out cheque Wrong sign etc

6.6) Cash This deptt also deals with cash. Payment of cheques, deposits of cheques etc.

7. FOREIGN EXCHANGE/DEPARTMENT:

This deptt mainly deals with the foreign business. The main functions of this deptt are: L/C dealing. Foreign currency accounts dealing. Foreign Remittance dealing.

7.1) L/C dealing NBP is committed to offering its business customers the widest range of options in the area of money transfer.  If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions. 7.2) Foreign currency account dealing: This deptt deals with the foreign currency accounts which mainly include dollar account, euro account etc. 7.3) Foreign Remittance dealing.This is very important function of this deptt.

15. DEPARTMENTATION OF NBP BAHAWALNAGAR MAIM BRANCH.

I did internship in Main branch BWN (Bahawalnagar) in Punjab province. Here the Manager, Muhammad Arshad Nagra and the Operational Manager Muhammad Amin and other staff members give full assistance and cooperation during my internship period. The stating date was November11 2008 and ending date was December 22 2008 of my internship period. This is the core section of your internship report. You should provide the detailed description of the tasks assigned to you during your internship program, and this section should be under training program.The tasks assigned to me during internship duration.During the internship period I was assigned the tasks as fallow:1. Data entry in computer2. Maintaining D.Ds and T.Ts. Registers 3. Customer Dealing about the bank’s products4. Maintaining the cash department.5 Maintaining the I.T Department6. Accounts opening and closing7. Online banking8. Maintaining saving and current accounts.9. Observing the managerial decision making

Dividing an organization into different parts according to their functions is called departmentation. So NBP Bahawalnagar branch is divided into parts.

Cash Department General Banking Departments

1. Cash Department:

Cash department mainly deals in cash. The Head of department is Mr. Umair Rao and two cashier Maher Shah and Muhammad Ali.

The objective of cash department:

“To facilitate people in the payments of their bills and taxes and repayments of cash”There are two main functions of cash department.

i. Payment ii. Receipts

Payments are the function that they pay their cheques and pay cash. Receipts mean collection of utilities bills, taxes etc.

2. General Banking Departments In this section of the bank the general banking function is performed. It is divided into five departments.

Remittances Department. Computer Department. Advances Department. Clearing Department. Establishment Department.

2.1 Remittances Department:This department is header by Zahid Ahmad a very competent person. The objective of this department is:-

“To transfer the money of people from one place to another place in safe and comparable way”The main functions of this department are:

Issuing of demand draft. Issuing of Mail transfer. Issuing of Telegraphic transfer. Issuing of payment order. Issuing of call deposit. Pension payments etc. Closing and scrolling of government collections.

2.2 Advances department:Every bank has a department which advances money to borrowers. In NBP

Bahawalnagar branch the advances department is head by the Business Manager Sir Asim and Operation Manager Sir Amin. Both are very competent persons. The objective of Advances Department is

“To facilitate people by giving short term and long term loans on easy terms and conditions”.The main function of this Department is to take surplus money from the people at low rates and lend this money to borrowers at high rates to earn profit.

2.3 Clearing Department: A clearing house is an association of commercial banks set in State Bank of Pakistan for the purpose of interchange and settlement of credit claims.In NBP Bahawalnagar Branch this department is headed by Ameer Shehzad having experience of about thirty years. The objective of this department is to “To facilitate customers for payment their Cheques of other banks”.

Two type of clearing books are maintained.

i) In word clearing books:The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All detail of the cheques are recorded in this book.ii) Out word clearing book:The bank uses outward clearing register for the purpose of recording all the details of the cheques that the banks have delivered to other banks.

2.4 Computer Department: This department headed by the accountant Mr.Saad and two other persons Mr. Junaid and Mr. Shahid are performing the real function.

The objective of this Department is to facilitate customers in payment of their cheques”.The main functions performed by this department are:

Checking balance. Deduction from balance on clearing cheques. Issuing bank statements. Dealing Western Union.

2.5 Establishment Department: NBP Bahawalnagar Branch having an Establishment Department. This Department consists of only one person Nasir Baig very competent and experienced person. This department mainly deals with the branch employees. The main objective of this department is to “To regulate bank business”.

Main functions of this department are: Keeps the record of attendance of employees. Employee’s salaries distribution. Employee’s bonuses etc.

16.General observation during Training Program

TRAINING SUBSTANCE

In this section topic discussed is as under:

Work performed by me

Tasks assigned to you should be under this section.Tasks assigned to you should be under this section.

WORK PERORMEDBY ME

I joined National Bank of Pakistan, Main Branch Bahawalnagar on 11th November, 2008. First day, the manager introduced me about the functioning of the branch and the staff. The manager told me that counter is the most important place of the bank. During the six weeks of my internship, I worked in different departments of the branch and did the maximum practice of banking system details of which is as under:

GENERAL BANKING

First of all, I was asked to work in different sections of general banking. I was attached to

Counter with Mr. Kashif who has good command on this section. Here we dealt with new

customer who wanted to get information and to deal with the branch. This is a very interesting

department because here we met people of different types and deal with them accordingly. In this

section, I observed the following functions:

CHEQUE AT COUNTER A cheque to withdraw the amount is presented on the counter with the following

requisites:

1 ... ... Name of the Account Holder

2 ... ... Current or previous date

3 ... ... Amount in figures

4 ... ... Amount in wording

5 ... ... One signature of the account holder in the right bottom corner of the cheque and

two signature of the bearer on the back

6 ... ... Branch Stamp in front of the cheque

7 ... ... If the Account Holder uses thumb instead of signature then the Pass Book is

necessary with the cheque

Operation’s officer checks and verifies all these requisites. If it fulfills all the requisites, it

is forwarded for payment after a certain procedure.

CHEQUE PAYMENT PROCEDURE After all the requisites are verified and then the excessive balance is checked and

prescribed amount is deducted narrated on the cheque, then SIGNATURE VERIFIED stamp

(in case of signature only) on the signature and a PAY CASH stamp are fixed and a Token is

given to the cheque bearer after writing Token No. on the specified cheque. Then the Officer

G-II verified the cheque and forwarded it to the cashier where the cheque bearer receives the

amount from the account.

ISSUANCE OF DEMAND DRAFT

A Demand Draft is provided to the client in which he has to specify that bank it is drawn.

The amount both in words and figures is written on Demand Draft.

BILLS COLLECTIONS DEPARTMENT I spent second week of my training in bills collection department. Mr. Afzal is the in

charge of this section. Here we collected utility bills like electricity bills, gas bills, and telephone

bills.

BILL REMITTANCE DEPARTMENT This is very important and interesting department. This section deals with the transfer of

money from one branch to another branch. Nearly four drafts are issued daily from this

department. Here I know how the amount is transferred and what the procedure is. This

department also deals with TT transfer of money. I worked nearly two weeks in this

department.

DEPOSIT DEPARTMENT DEPOSIT DEPARTMENT Deposit department deals with Current, Savings, and Fixed Accounts. In current account

the bank does not give any interest and you can deposit the whole amount in lump sum in

business hours.

However in PLS savings account we can only withdraw up to Rs.25000/- without any

notice otherwise a prior notification of a weak is required to the bank if the amount to be

withdrawn is more than Rs.25000/-

Old ages are interested in Fixed Account usually. The rate of interest is higher more than

that of in Current and PLS savings Account but the amount cannot be withdrawn before a

specific time fixed by the client.

To open the account customer have to fulfill an application form and submit to the

concerning authority. In Current and PLS saving Account, a Cheque Book is issued to the

client and he becomes the Account Holder of NBP. I worked in this department for one and a

half week.

I have divided general observation in four parts. Which are as under: This analysis is mainly based on my general observation.

Problems at the branch. Function analysis. Administrative analysis. Personal management’s analysis.

1. PROBLEMS AT THE BRANCH

1.1 Customer SatisfactionIn NBP customer dealing is well, but during rush hour the customer has to wait for a long time for their turn. It’s quite hard for a new customer or potential customer to get the required information.1.2 Poor record management and filing systemDuring my internship I observed that filing system of branch is not good. When certain record is needed the staff has to struggle to find it out and a lot of time is wasted.1.3 Unequal distribution of workWork is not equally distributed. On one hand some employee have to work all day without relaxing while some others have nothing to do at all. This not only creates confusion among employees but also hurting and disturbing for overall setup of the bank. And above all it results in dissatisfaction among customers as well.

1.4 Marketing visitsA useful mode of contact is through personal marketing visits. Such visits are important in informing and perusing the existing and potential customers about the products and creating a sense of belongingness with them.

2. FUNCTIONAL ANALYSIS

2.1 Formal OrganizationFormal organization includes the activities of two or more person, which are cautiously determined groups and coordinated towards a given objective. It provides base when people are able to communicate with other, when they have common purpose and they are willing to work.In NBP, we find a formal organization. Bernard referred to an organization as a formal when the activities of two or more persons are coordinated towards a given objective. The formal organization comes into being when people are able to communicate with one another or willing to act and share a purpose.In this formal organization of NBP the activities are carried out in a more formal way. In theoretical terms it provides basis for communication with one another but in practice it is not exercised because an employee at high level cannot get straight away to manager or SVP and ask him about of his problem faced by him, because first he has to talk to his immediate superior and follow a proper channel of communication.

2.2 Difference between theory and practiceA vast difference exists between theory and practice and NBP has written procedure but practical work done by employees is a bit different from written procedures.

2.3 Bank duty to maintain secrecy.They don’t care about maintaining secrecy, especially during the rush hours. They speak loudly about the account position and while getting clearance of cheque the person can easily get the whole information from the ledge. The deposit clerk must be careful while passing any cheque. In this regard another shortfall is in giving the information about the balance on telephone.

2.4 Excessive paper workIt is notified that due to the lengthy procedure of paper work the bank employee are over burdened. They are unable to give proper attention to the clients and face difficulties in getting their job done. One reason for lengthy procedure and excessive paper work in the bank is the lack of computerized technology.

2.5 More accounts fewer deposits.Efficient banking is one which does not emphasize on number of accounts but on greater amount of deposits. NBP is more interested in increasing its number of account irrespective to its deposit. The main reason behind it is that bank does not provide personalize service to all the account holders and does not improve its quality and services

2.6 Delegation of authorityManager has very limited authority; he has to take the approval from his management authority i-e. In case of advance he has to take the approval of general and regional manager. The other

problem is created, when the manager is not present in his office, the customer have to wait for hours. This discourages both customer and officers because they have to suffer a lot

3 ADMINISTRATIVE ANALYSIS

3.1 Job analysis is not effectiveOnly on the basis of job analysis it can be decided how a right person can be hired, trained, compensated or promoted. It is very important for an organization that nature of the job is described and job specifications are mentioned. Most of the employees are simple graduate and do not have proper background about their job. This creates problems both for organization and for the employees. In NBP salaries are given according to the seniority and grades. People with simple or complex responsibility are getting the same salary and facilities. This creates dissatisfaction among employees.

3.2 Carelessness in opening of accountWhen customer comes to open an account, the staff does not bother to check his/her place phone number and permanent address. It is important because in case of overdraft by mistake or anything which places his account in debit it will be difficult to trace him. On the other hand he may be involved in any fraudulent activities against the bank. In this case the bank will be in awkward position.

3.3 Lack of specialized training NBP does not provide adequate facility of specialized training to their staff. Training is generalized rather than specialized. As the worker finishes his training, he is inducted into a specific field without having great deal of knowledge about the field.In the Bahawalnagar branch the newly recruited employee training was not imparted, they all learned things on the job.

3.4 Low Profit RatesMost of the customers shifted their account to the National Saving Center because of the low rates of saving deposit discourages the customers. Bank should increase their profit rates to attract customers.

3.5 Poor job rotation.There is absence of job rotation in main NBP Bahawalnagar branch. A person placed in one department remains their forever. It reduces career opportunities as well boredom and in the end results in career platueing. Job rotation is very important for employee especially for those who are newly recruited. The newly recruit should be rated in all department of the banking in order to get familiar with working of different departments so that when they get a responsible position they have know how of the whole system.

3.6 Delays in Loan AdvancementIt has been observed that there are delays in sanctioning of cases form the head office, which results in customer dissatisfaction.

3.7 Lack of appreciation

Another very important thing which is ignored in the bank is appreciation if the employee on their good performance. If hard work and performance of employees is not recognized and appreciated they become dishearten which results in decline in performance.

4. PERSONAL MANAGEMENT ANALYSIS

4.1 Need for better training program Need of training is greatly emphasized all around the world. Training of the personnel is part of human resource management. It has been noticed that the training program of NBP is not adequate. Once the candidate is selected and placed on the respective job. It becomes essential to train him adequately for the task. They should learn new methods for motivating customers. The training programmed of the bank should include scientific techniques to improve the decision making and interpersonal as will individual needs of the employee both specialized to fresh as well as on job to maintain the high standards of service.

4.2 Developing Managerial LeadershipLeadership is a practical term of visible, clear on objective and communicating better control on financial and administrative matters. Manager is not only responsible for their own units in business, but also in people terms i.e. training, recruiting, grievance handling and taking immediate initiative in crisis situation to take major decision affection the future of the bank and banking community.

4.3 Recruitment policyHuman resources are the lifeblood of the organization. If the personnel are recruited carefully they can become asset to the organization in the case of carelessness a liability on the organization. Bank is not following its recruitment policy properly due to favoritism, nepotism and political pressure. Both the top authority and staff union tries their best recruit their favorites, indulgence of political pressure add salt to the wounds. The persons selected through these channels are infantile and do not work for the betterment for the bank.

4.4 PromotionsPromotion in NBP is purely on the basis of seniority, so the new young person having high qualification remains behind for quite a lot of time. Top management and staff union put pressure for the promotion of their favorites, which gives a sense of deprivation to the deserving employee and their efficiency is affected.As the concept of promotion is attached with better in terms of greater responsibility, more prestige, greater skills and increased rate of salary. Thus a better and impartial policy of promotion needs to be followed.

4.5 TransferTransfer means when a person is shifted from one place to another place. It is done either that person is needed more on the other branch or for improving his skill variety. It is the policy of the Bank to transfer each employee 3 to 4 years.

4.6 Marketing at deskBank employee come in daily contact with many people who happen to deal with the casual remittance, travelers cheques, safe custody, pensioners, depositing license fee and variety of other functions and variety of other people with whom the Bank has no account or regular business relationship. The Bank employees are doing very little on their own to explore the possibilities of selling banking services to them as a marketing contributor. The entire Bank community should make a conscious effort in addition to their normal work to explore the possibilities of selling banking services to them. The market opportunities are hidden in every dealing a banker handles; the question is that if he has the art and urge to seize such opportunities.

4.7 Lack of business communicationThere is no proper way to give information to their customer. To avoid this minor dissatisfaction and tension in the mind of customer, and deficiency of the service, it is recommended that the bank should provide brochures etc containing information in details.Some general information should be placed in information notice board on the entrance where customer can see it easily or it should be self-attractive.

17. MANAGEMENT INFORMATION SYSTEM (MIS)

I worked in MIS/IT department and observed the system during internship all activities in IT department were noted and made some practical work there.MIS Analyst Main Responsibilities: - Assist in the development and planning of the management information systems which will provide timely financial information with respect to product profitability - Conduct financial analysis for proposed new products, business and other projects - Work closely with business units to define the data.

Responsibilities Prepare management accounting entries, maintain funds transfer pricing system rules and validate system output Prepare and distribute monthly management reports Respond to user inquiries on management accounting results Operate and maintain management accounting database.

Management Information System (MIS)The National Bank Corporate System provides detailed information (MIS) which can help in controlling expenses. Monthly management reporting is an integral component of the corporate Card offer from National Bank. It gives the management and its employees a complete expense tracking mechanism. It also provides a reasonable credit period. Thus reducing your working capital requirement this will reduce the time and cost associated with expense control. The report package provides both Summaries and itemizations of charges and payments. The reports help you;

Streamline expense control Analyze spending patterns Forecast future spending The Individual Card Member Billing Statement

For convenience they give a one-glance statement that details each individual charge. It shows clearly all purchases, cash advances, applicable finance and service charges and amounts that remain outstanding month-wise.

Consolidated Company StatementUseful for monitoring Card usage and payments, NBP Corporate Card system provides you with details of each Card Member's expenditure. It lists the date, place, amount of expenditure, the net amount payable by each Card Member, and at the end of the report, the grand total for the company.

Individual Account Descriptiononce you nominate your employees to become NBP Corporate Card Members, you can receive reports. These will tell you in a variety of useful ways, how Card members are incurring expenses. Your employees simply need to charge expenses and pay back conveniently after receiving their statement. Card Members will receive a billing statement each month that lists their charges and payment activity.

Cost Savings

Improved cash float: The Corporate Card minimizes the need for cash advances and the administrative burden involved in tracking & reconciling them. Moreover, Card Members are billed once every month, which helps improve the Companies cash flow.

Better rates from Suppliers: Management Information (MIS) generated by the Bank Corporate Card System helps the Corporation identify new savings opportunities and support fact based negotiations with suppliers. The Merchant Spending Report provides cumulative spending by all Card Members split into the travel and entertainment heads for e.g. by Hotel property, airlines, travel agencies, ATM cash with drawl, car rentals, petrol etc. This information can be used to obtain better rates from suppliers, and realize tangible cost savings.

No Interest costs: The Bank Corporate Card is a Charge Card wherein bills are payable on receipt. This inculcates financial discipline amongst employees, saving the Company unnecessary interest burden on overdue out standing.

Corporate pricing advantage: Unlike other Cards, Bank Corporate Card recognizes your Company's buying leverage. As the number of Cards issued in a company increases the annual fee payable per Card keeps reducing saving costs to the corporation

Reduced Administrative Burden

Single Payment instrument: One Card for all your T & E requirements. The Bank Corporate Card significantly reduces paperwork involved in processing and paying multiple vendor bills across multiple travelers. It also eliminates the need to set up credit lines with a range of vendors used by your corporation. Flexibility: You can opt for a billing and payment methodology aligned to your internal accounting and reporting procedures.

Multiple Billing & Payment Plan: Bank has the flexibility of sending bills to individual Card members or to a single recipient in your Company. You can also choose to pay Bank centrally or let individual Card members settle their own bills.

Access to single vendor for all your travel related needs: As a Bank Corporate Card customer, you can access International travel partner, allowing you the convenience and efficiency of dealing with a single quality supplier for all your travel related requirements.

Option of Individual and Corporate liability: You have the option of opting for the Corporate Card program with individual or corporate liability.

Benefits to the employees

Convenience:

Ease of charging and accounting business expenses:Bank provides you with a billing statement that lists all charges on the Card date wise with complete transaction details.So you know how much you spend and where. The descriptive billing statements help reconciliation of expenses Attractive spending limit: Unlike most other Cards the Bank Corporate Card provides the flexibility to the corporate to set spending limit for the company nominees. Frequent travelers find this facility extremely useful when handling large expenses and during unexpected situations such as extended business trips.Wide acceptance at quality establishments where business travelers normally incur business expenses. Bank Corporate Card is affiliated to Visa and is welcomed at all Visa Merchant Establishments.

Global Customer Assistance Services: Visa provides the following Card related assistance services to Bank Corporate Card Members when traveling overseas.

Lost/stolen Card reporting Emergency Card replacement Emergency cash disbursement Security / Insurance Cover Photo and Signature option for Individual Card Members Limited loss Card liability. Post reporting the loss of Card, liability is Nil. World Class Service 24 hour customer services delivered to international standards from all over the country.

Membership Rewards: Bank Rewards Plus Program, Opportunity to participate in the most powerful Rewards program in Pakistan.. And it is so simple to redeem these points. The Card Member needs to accumulate a minimum of 150 reward points and at the end of the year can redeem these reward points against any items in the rewards catalogue.

Other Benefits to Card MembersEmergency Assistance Services that enables Card Members to obtain emergency legal/medical referrals while traveling overseas.

MIS Supports to other departmentsThe Management Information Services Department provides a variety of services relating to computer and telecommunications services, application software development, design and production services, and software training to all internal Town clients and departments.  These services encompass personal computers, networks, printers, servers, and more.  The MIS Department is an innovator in the field of information technology management, using a combination of management solutions that maximize effectiveness and minimize cost.  The MIS Department also consults with other departments to analyze and select proper IT solutions for specific applications, provides internet access, computer training and support, and mobile computing solutions for Town departments.MIS coordinates all Town-wide core business functions and information technology administration.  This includes accounts payable, utility billing, payroll administration, general ledger, budget, purchasing, human resource management systems, accounts receivable,

permitting, code enforcement, police and fire dispatch and EMS reporting, and office automation.

System and Network Support Development and maintenance of the Town's core communication infrastructure and wide area network.  Maintain file and application servers and network security management, software distribution, and technical support for hardware and software.

Development:It Provides design, development, implementation services and continued support of special data, and databases town wide.

Web DevelopmentThe MIS Department designs, develops, implements and maintains the website.Information technology changes rapidly and new systems and technology are continually being implemented and installed.  The MIS Department strives to translate this technology into higher productivity for departments, and higher quality output for reduced costs of operations that ultimately benefits the citizens of area.

18.Structure of the MIS Department

 

19. Functions of the MIS Department Having founded the information technology (IT) services industry more than 10 years ago, MIS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy.

MIS ControllerHe infrastructures support group skills to provide front office internal advisory role on MIS related issues and... reputation both within the bank and externally. There are 4 main areas that comprise the department...; Financial Reporting and Control, Product Control, Regulatory Risk, and Business and Corporate MIS. Moves... business lines within a supportive setting and surrounded by skilled professionals.

Senior Accountant Senior Accountant is responsible for the enhancement of the control... business performance, through monthly commentaries and business reviews. This key role will see you... month-end reporting and MIS to the Front Office, Bottom of Form

Head of Computer & IT (MIS) Dept

Head of Technical Archive

Secretary / Typist

Head of Support & Computer Operation

Head of System Design & Integration

Information Network & Internet Manager

Head of Computer Operation

Head of Support

Head of Desin of Tech. & Oper. Sys

Head of fin. Admin. & Comm. Manager

Internet/Intranet Manager

Web Master

HW Sen. Eng

Sen. Expert OS

Head Tech. Sys

Head fin., Adm. Sys.

Senior Analyst & Programmer

Senior Analyst & Programmer

Tel. Proc. Sen. Eng.

Sen. Exp. database

Head OS

Head Comm. Sys

Business Analyst - Finance Change, Investment Banking He integrates programs within a Global Investment Bank based in the City. The suitable candidate will support... existing finance reporting systems across the bank. Both projects will look at reengineering the finance... platforms for General ledger and MIS Reporting, with specific responsibility for: Business requirement... Liaising with business and technical teams across the bank Suitable candidates will be a Qualified

C# Lead Developer – Collateral ITIn the systems supporting the F2B business and will have an increasing role in new business... business. The role exists for a lead C# Winforms GUI developer on Collateral Portal, our next generation... suite of trader tools. The role will involve: Designing and establishing a simple GUI implementation

Policy & Portfolio Reporting AnalystInternal Audit Role Leading Global Investment Bank Credit Product... A new position has arisen with this leading global investment bank for a Policy en Portfolio... Reporting Analyst to join the reporting team Main Duties of the role include: Technical data expert provide portfolio data analysis, quality assurance, MIS production for portfolio reports to understand.Major functions: (of Policy and portfolio Reporting Analyst)He explains the role of information technology as a business enabler and identifies and explains management information systems applications including customer relationship management systems, enterprise systems, e-commerce applications, transaction processing systems, business analytics, and emerging technologies. He evaluates the organizational fit and suitability of business applications and interprets the interaction between information technology, customers, processes, data, infrastructure, participants, and environment in an organization. He understands the ethical challenges of information technology and explains the evolving role of management information systems in the organization, and the role and careers of MIS professionals.Critical analysis has not been provided.

20. SWOT ANALYSIS SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organization’s 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 overall evaluation of a company strengths, weaknesses, opportunities and threats is called SWOT analysis.”

In SWOT analysis the best strategies accomplish an organization’s mission by: 1. Exploiting an organizations opportunities and strength.2. Neutralizing it threats.3. Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness

and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.

1. STRENGTHS:

1.1 OLDEST INSTITUTION:NBP in one of the oldest bank of Pakistan and first nationalized bank Hence its customer base is strength from this plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank.

1.2 ALTERNATE DUTIES IN SBP ABSENCEThe NBP performs additional services for its customers as well as the other bank customer in the absence of SBP.

1.3 MORE DEPOSITS THAN OTHER BANKNBP has the relative competence in having more deposits than the other bank. This is because of the confidence the customer have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over all others, lacking it.

1.4 EMPLOYEE BENEFITSThe employers at NBP are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees.

1.5 BROAD NETWORKThe bank has another competency i.e. it has broad-basses network of branches throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied.

1.6 STRICTLY FOLLOWED RULES &REGULATION:The employees at NBP are strict followers of rule & regulation imposed by bank. The disciplined environment at NBP bolsters its image and also enhances the over all out put of the organization.

1.7 PROFESSIONAL COMPETENCEThe employees at NBP here have a good hold on their descriptions, as they are highly skilled Professionals with back ground in business administration, banking, economics etc. These professional competencies enable the employees to understand and perform the function and operation in better way.

1.8 HEALTHY ENVIROMNMENTThe working condition in the NBP branch here is very conductive and favorable for better output. The informal environment affects the performance of the employees in a positive way.

1.9 RELATION BETWEEN STAFF AND OTHER EMPLOYESS

The bank enjoys a good plus point when it comes to the employee manager relationship the hearing as removing of discrepancies if any, between the employees, and between the manager and employees.

2. WEAKNESSES

2.1 LACK OF MARKETING EFFORT:The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the era marketing in now becoming a part of every organization.It’s a threat. 2.2 NBP UNDER POLITICAL PRESSUREThe strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees.

2.3 FAVORITISM AND NEPOTISMThe promotions and bonuses etc in the bank are often powered by senior’s favoritism or depends upon their wills and decision. This adds to the negative factors, which denominate the employees thus resulting in affecting their performance negatively.

2.4 LACK OF FINACIAL PRODUCTThe bank falls far behind when the innovative and new schemes are considered. It has not been involved in the tug of war between the competitors to the accounts and strengthens the existing customer base. This stands out to be the major incompetence and weakness of the banks.

2.5 INEFFICIENT COUNTER SERVICES IN THE RUSH HOURSDuring the rush hours, the bank is founded out to be a total flop to handle the mob of people peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours where the people find them services entangled in a situation of nowhere because they are not well served.

2.6 LACK OF COMPUTERIZED NETWORKThe bank lack the strength of being powered by the network of computers, which have saved time, energy and would have lessened the mental stress, the employees have currently. This would add to the strength if it were powered by network of computers.

2.7 LACK OF MODERN EQUIPMENTThe bank lacks the modern Equipment that is note counting machine computers. Even if there is any equipment they lack to fall in the criteria of being rearmed as update and upgraded

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

3. OPPORTUNITIES

3.1 ELECTRONIC BANKINGThe world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. NBP can utilize the electronic banking opportunity to ensure on line banking 24 hours a day. This would give a competitive edge over others.

3.2 MICRO FINANCINGBecause of the need for micro financing in the market, there are lot of opportunities in this regard. Other banks have already initiated, now the time has arrived when the NBP must realize it and take on step to cater an ongoing demand.

4. THREATS

4.1 EMERGENCE OF NEW COMPETITORSThe bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition.

4.2 POLITICAL PRESSURE BY ELECTED GOVERNMENTThe ongoing shift in power in political arena in the country effects the performance of the bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees.

4.3 DOWNSIZINGThe bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the over all performance of employees negatively.

4.4 CUSTOMERS COMPLAINTSThere exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored

21. COMPETITIVE ANALYSIS Porter’s five forces model: This approach is widely used for competitive analysis. It is because of the high intensity of competition among companies there five main competitive forces.

1. Rivalry among competitive firms: It is a very powerful force among the competitive forces the strategies pursued by one firm can be successful only to extent that they provide competitive advantages over the competitor. These competitive strategies may be lowering prices, best quality series. The NBP offering very low charges an demand draft, telegraphy transfer, mail transfer and give other additional services to the customers and to the Nation. Because NBP is a “Nation’s Bank”.

2. Potential entry of new competitors: Whenever new firms ca easily enters a particular industry, the competition increases. The gout restriction, tariffs, patents etc can stop new firm to enter into the business as per Banking industry is concerned this market is already very situated in Pakistan and there are banks with quality services and low charges. So there is no threat to NBP from potential entry and NBP is also a public sector bank because of that no other new bank not takes over it.

3.Potential Development of substitute products: This is the third factor affecting the competitions. There may be some other product can be substitute the product of that industry. For example banks offering sawing schemes in Pakistan and these schemes are also offered by GPOs in Pakistan so they must compete them in this field. If they offer low rates than GPOs so people will go to deposit in GPOs. People concentration high rates so that’s why sawing PLS accounts are more then current accounts. The next examples will ATM which substitute presenting cheques at counter and encash it. The NBP is lacking in this field. It must improve in this field to compete the competitors.

4. Bargaining Power of Suppliers: The bargaining power of supplier affects the intensity of competition, especially when there are a large number of suppliers. In case of banks the suppliers are customers they supply the money to banks. Now they must offer good services, quality, and safety. Low charges etc to customers. In this field NBP is very good. B/C at offers good quality services to customers. They charge low charges on remittances. So that’s it is competitions other banks.

5. Bargaining Power of Consumers: When customers are concentrated or large, or buy in volume, their bargaining power represents a major force affecting intensity of competition. Now the number customers in Pakistan for banks are very high. Banks offering variety of products and services to their customers. NBP have a large number of customs. Now it must offer good services and products to their customers to attract them to come to NBP.

Conclusion?

22. SUGGESTION: NBP is an effectively operating and profit making organization and carrying out its activities under a specified system of procedure. The main regulatory body is State Bank of Pakistan, which provides policy guidelines and ensures that the money market operates on sound professional basis. While the head office specifies the whole procedure of function and operations. This procedure has been modernized with the passage of time with a view to streamline the approach and underlying procedure for effective overhauling of its own capabilities so as to bring them at par with international practices.Here I am giving some suggestions, which in my view can add some input for efficiency and better performance of NBP as an organization in genera and City branch in particular.

The recommendations are as follows:

1. Professional trainingNBP staff lacks professionalism. They lack the necessary training to do the job efficiently and properly. Although staff colleges in all major cities but they are not performing well. For this purpose these staff colleges should be reorganized and their syllabus should be made in such a way to help the employee understand the ever changing global economic scenario. Banking council of Pakistan should also initiate some programs to equip the staff with much needed professional training.

2. Delegation of authorityEmployees of the bank should be given a task and authority and they should be asked for their responsibility.

3. Performance AppraisalThe manager should strictly monitor the performance of every staff member. All of them should be awarded according to their performance and result in the shape of bonuses to motivated and incite them to work more efficiently.

4. To Over Come Problem of Space and FurnitureIn the critical analysis this, problem is discussed. To overcome this problem it is suggested that a special section should be made inside the branch. Which should only handle the treasury function, salaries and pensions of federal personnel or the bank should do these functions in the evening time. Also management should purchase more furniture and arrange them in such a way which provides maximum space and convenient especially in deposit department and there should also be convenient sitting place for customers.

5. TransferTransfer is not properly carried out. Some of the employees are continually serving at the same post. They are simply rotated at the same branch. Therefore it is recommended that evenly rotation of every employee should take place after every three years in different braches of the bank.

6. Changes in Policies

There should not be any abrupt policies change by the upper management, as this practice hurts the customer confidences in the bank. Government should make long term policies

7. Need of Qualified StaffRequired, qualified staff should be provided to branch in order to improve the functioning of the branch. Especially a telephone operator should be appointed.

8. Utility Bill Charges Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job despite this working resulting in a loss to then Rs 3 to5 per transaction. These charges should be increased to RS 10 per bill to enable the branch to cover their handling costs and make some profit.

9. Link with the Head Quarter100 major branches of NBP should established a direct link with the, head quarter In Karachi, through Internet or Intranet. This will make the functions and decision making of the management easier and convenient.

10. Credit CardNational bank of Pakistan should start its operation in credit card. These cards are very helpful for the ordinary customer in general and the business people in particular. To make it mores secure and to eliminate the misuse of it, the management is required to keep proper security against the card.

11. Installing Validator and ATMValidator machine is used to count the currency notes and its installation will help to eliminate to counting errors and will save time.This branch is situated in the City, which is supported to be the hub of business activates. In this area an auto teller machine (ATM) is the need of the hour businessmen can easily check their balance in the bank and also with draw their money conveniently.

12. Interest on Overdraft:Overdraft is a short-term credit facility provided by the bank to its trustworthy customers free of interest. Only bank commission is charge small amount of mark-up on the overdraft, which will help the bank to improve its revenue position.

13. Clean LoansClean loan or clean overdraft is the credit facility extended to the customers to the customers without any security. These types of small term loans should not be extended to anybody, because sometime these loans are provided to blue-eyed people of the management and they become a part of bad debts.

14. Cash FinancingIn this mode of financing the amount of credit not utilized by the borrower is remained tax-free. It is recommended that a small amount of interest should be charge on this amount as well because the bank gas kept-aside the amount for that borrower and can not advance it anywhere.

15. Decreasing Administrative ExpensesBank should their administrative expenses. This was Rs 8 billion in the year 2000. That can be done by lying off the surplus pool of employee with golden handshakes scheme. The branches that are not much used could also be closed. Employee can also be how to control the bank expenses. That will give positive results in the future.

16. Needs to be Flexible in credit PolicyAs mentioned earlier, NBP is very conservative in advances and loans policy. It reduces the investment opportunities. Also loans should be given to the small businessmen and the agriculture sector at the low markup rate. It should adopt flexible credit policy while giving credit to the agriculture sector.

17. Technological AdvancementI would like to suggest that at least all the main branches of NBP should be fully computerized in order to expedite the dealing process among bankers and their customers. Every department should be provided a computer with adequate training (especially Advances, Deposits and Foreign Exchange departments).Daily records should be entered directly into these computers, (instead entering the overall daily transactions after the banking hours). It will not only reduce transaction time, will increase accuracy but will also be efficient as well. Not only it will be economical but will also reduce the extra burden of work of the bank. It will also help in reducing the use of excessive paper work.

18. Staff RelationshipGood relationship among staff member leads to the peak performances in any organization. I observed that the staff relationship was normal other wise but some time I noticed that there existed a little conformity among the staff members. Another syndrome from which the staff suffered was that all of them considered themselves more important than others. Some of the officers used to say that if I am absent for a day the bank would stop working. So this sort of attitude is not good because it mars bank image and juniors’ willingness learn and work hard and in the end will hurt the whole team.

19. Improper Distribution of WorkProper distribution work leads to success in every organization. Proper distribution of work prevents the employee from over and under work situation. So for a smooth running of an organization proper distribution of work is the hint to be followed.During my internship I observed that there was no proper distribution of work in the bank. I saw that some of the employee worked like ants other sat idle starting here and there. So this created a lot of over work situation for while relaxation for other.

20. Favoritism and nepotismIn the City branch during my internship I saw that when some of the employees are transfer to other places, due to their relation with influential people and with top management they can cancel their transfer in few weeks, when they are unsatisfied at that place. So I suggest that in the organization there should be no favoritism, nepotism and politics and their transfer and

promotion should be made on merit and according to the rules and regulations of the bank and provided favorable environment to the employee to show their performances.

21. Inter Departmental TransferI watched during my internship that, there is number of employee who have worked on one seat for many a year. It can have negative effects motivation of employee who is hard working and intelligent. Take the example of advances section. In advance section if the employee is transfer after sixth month or seven month, how can he be able to show his performances and how can he be able to know the bank customer in a short period of time.

22. Foreign currency AccountFor the internship the place I have selected was City branch, which is my forefather land and I know that from area many people have traveled to other country for different kind of jobs, and I have heard personal complaint about the unavailability of foreign currency account in banks. So I thick it is wonderful opportunity for the bank to open foreign currency account.

23. Marketing PolicyThe branch should adopt various marketing strategy and promotion strategy to promote the bank and its product.The most important in my opinion is personal marketing; it is the most effective of all when you think in term of branch level. But on the whole organization level, they should arrange the seminar with in the bank and outside the bank. They should introduce various prizing schemes just like Allied Bank. Karamad Scheme, Bank Al-Falah (monthly income earning scheme) and various others.They should do more advertising through newspaper and media and through channel of personal contacts.

24. Complaints of CustomerThere should be an information desk to provide the information and to receive the complaints of the customer in the bank.There is no complaint box available in the branch and not any person appointed to hear the complaints.

Every person cannot go to the manager for the complaint because most of the people are hesitant. So I suggest management to install a compliant box in the branch, and recruit a special person for that guidance of the customer when they are unable to manage some difficulties in banking matters.

25. Analysis of the Business:Proper analysis of the business reports should be conducted before extending any type of loan. For this purpose professional training of the stuff member is required.

26. Organizational CommitmentIt is suggested that employees working on daily wages basis should be given some benefits, which the other employees are getting. Their salaries must increase according to efficiency, performance and service.

27. Managerial LeadershipIn the analysis, we have discussed the difficulties of the assistant in taking any initiative; therefore it is recommended that the assistants should he given special training to make them ready for the leadership.

28. Credit Monitoring The credit department of the bank should carries out vigilant credit monitoring. They should ensure the proper payment of installments and the mark-up by the borrower.The staff members who have done all the paper work of the loan extension should perform the monitoring, as he/she will be having more information about the borrower.

29. Extended Banking HoursThe banking hours may be extended up to six, as being practiced by HBL opposite to it.Some of the business community due to law and order situation are now reluctant to keep the fund in their premises and would want to depart with it. Therefore, City Branch may extend the night banking to cater to demand of this business community. The branch could also be opened to cater the requirements of this business community Limited staff:

30. Housing and House Hold Goods loansBank should initiate these loans because most of bank’s customers are middle class and they cannot afford to buy house or house hold goods at once by their own

31. Avoiding Bad DebtsGreat care should be taking while extending the loan. Loans should be awarded against reasonable securities, where market value should be equal to the loan granted.Policies should be crafted in a way to ensure that no loan is extended on political pressure. SBP regulation for loan approval should be strictly followed. According to which the current ration of borrower’s business must be 1:1 and the debt to equity ratio should be 60:40, means the liquidity position of business should be healthy.

32. Car Financing SchemeAnother financing scheme with the name of “MARE GARE CAR FINANCING SCHEME” should be initiated This finance scheme will help the general public to buy the car of their choice in easy quarterly installments The bank monitors will do strict monitoring and the car will be hypothecated with the bank against the car loan.Scheme’s implementation plan is give in the next chapter.

Implementation planFrom the above recommendation, two recommendations are selected for implantation plan.1. IMPLEMENTATION PLAN FOR “MARE GARE CAR FINANCING SCHEME”Implementation of this financing scheme is initiated to provide long term loans to the general public for buying their own car in easy installments. This financing scheme will help bank to increase its revenue immenselyRules and regulations:

Name of finance Mare Gare Car Financing Minimum amount of finance Rs. 300000 Maximum amount of finance Rs. 1500000 Rate of Mark up (on daily product basis) Rs. 0.43 per Rs. 1000 Period of finance 3 or 5 years Repayment to Bank Quarterly (12 or 20 equal installments)

1.2 Documents required for extension for loan

Documents of title to car. Bank monitoring team approval certificate. Car dealer certificate of authentication. Insurance.

1.3 Securities Required for Extension of Loan To ensure the safe recovery of loan the car will be hypothecated. Guarantee of two 17th grade government or semi government officer. Personal liability of the borrower.

1.4 Finding out Quarterly InstallmentsMark up will be calculated for the whole time period and will be added to the principle amount. The total of that will be divided by number of installments to get the amount for each installment.

The formula for extracting mark up is Mark up =F*R(1+N)

2MWhere

F = Total amount of financingR = Rate of mark up for one yearN = Total number of installmentsM = Number of installments in one year

Case studyAmount of finance Rs. 200000Rate of mark up Rs. 0.43 per 1000Total number of installments 20 (5 years)Number of installments in one year 4Rate of mark up for one year ® = .43 * 365/1000 =.157Mark up for the whole financing will beMark up = 200000 * 0.157*(1+20)

2 * 4 = Rs. 82425

Now the quarterly installments will beQuarterly installment = principal amount + total markup

Total installments=200000 + 82425 / 20 = Rs. 14121/-The borrower will pay Quarterly installment of Rs. 14121/-

2. Implementation plan for NBP Bahawalnagar branch “Telephone Operator”The ingredients of the implementation plan are.

Need/problem at the branch. Qualities of a telephone operator Benefits of a telephone operator. How the need created and bank’s staff decision. The implementation plan cost.

2.1 Need problem at the branch.Every organization has some problems. NBP Bahawalnagar branch has the problem of telephone operator. It can save the precious time of not only manager but other staff as well. On the other hand bank’s communication system was not doing well overall. Therefore as an internee I felt that there should be a telephone operator who can easily handle this situation.

2.2 Benefits of the telephone operatorIt saves precious time of the manager and staff members.It saves the time of the customers.

Creates good impression on the customer. Communication within the bank improves. Communication of Bank with outside enhances.

2.3 How the need was createdThe need for telephone operator was created because the staff members would have to leave their work and attend the telephone but some times it would be a wrong call, other’s call or the calls which they wanted to avoid this would not only waste their time but also affect their performance a great deal. Therefore they think it’s useful to have a spare person for this facility.2.4 Action/Implementation plan cost

Cost of HRM departmentAdvertisement in newspaper cost 4000Selection cost 10000Training cost 12000Total HRM cost 26000Telephone networkingAdditional telephone sets 2500Cable (Rs. 5/ foot, 5*800) 4000Telephone mechanic 2000Labor 2000Separate cell cost 5000Other expenses 2000 Total networking 17500Total action plan cost 435000

23. RECOMMENDATIONS

In this section only one topic is discussed that is recommendation. During my training at Bank NBP I observed some areas that need attention of the management like:Bank needs to use more marketing channels to make the public aware of its products and services. In the presence of intense competition NBP has to realize the importance of marketing. Management should distribute work equally among different employees. Some of the employees are overburdened while some sections are overstaffed.NBP needs to improve its website. More information relating to financial performance of the bank should be available on the website.

The number of the women hired by the bank is very less. NBP should employ more women. Moreover it should also recruit women for working in “Credits”.

Bank NBP Limited should immediately improve its Information Technology System. The soft wares currently in use should be made error free, as it is the need of the hour, and integrated data interchange should be inculcated to enable top management to monitor all activities going about in all branches through generation of special purpose reports. There are a disproportionate number of seasoned bankers in the top management who have the responsibility of making strategic decisions. This think tank should also include a reasonable proportion of young bankers whose mindsets teem with new creative ideas, which might prove to be invaluable for NBP Limited.

The top management should immediately start thinking in terms of rotating the employees in various departments, as this transforms work force into human capital. If a particular individual keeps on employing his/her efforts in one sphere of banking it would not only create a sense of monotony and boredom, but also not help improving the skill set of employees.

NBP should embark upon an even more aggressive management strategy of expansion of branch network not only in the local untapped opportunity for NBP.One of the most pressing needs of the time is to advertise Bank Alfalah Limited in the electronic media.

PROPER PLANNING Bank should make a plan to gear up its recovery efforts on war footing and reorganize the recovery function of global bases. In addition, bank should tighten up control on expenditure

USE OF COMPUTERS To save the time of the customers and other clients, bank should adopt computerized system for book keeping and other filling systems. It will increase the efficiency of the bank. I know that there are some branches which are computerized but most of the branches in various cities of the country are not computerized. So the bank should mechanize all its branches in the country.

ADOPTION OF ADVERTISING

Bank should launch advertising campaigns through out the year to promote the habits of savings in the people. Bank should open more branches in the remote areas of the country to get deposits and idle resources. Bank should provide similar facilities to all its branches in big cities. The standard of service and other facilities are far better as compared to smaller cities.

PROPER GUIDANCE Bank should adopt such an induction plan that when a customer opens his account with the bank, he should be supplied with a booklet which enables him to know the procedure of filling the cheques and pay-in-slip etc. It will save a lot of time of the bank staff afterward during of the conduct of the account of that customer.

DIVISION OF WORK The billing system of national bank of Pakistan must be improved to facilitate the customers and workers. The work should be divided among the staff e.g. collection of bills, countering of cash and then entry of these.

CHECK ON EXPENDITURES Expenditures must be controlled which are very high and unnecessary.BORROWING AT LOW COST Deposits must be taken at a lower cost and given at higher interest rate.

24.References

1. Daft l Richerd “Management” 4th Edition Pages 254, 256, 269.2. Kottler Philip “Marketing Management” Millennium Edition Page 76.3. Fred R. David “Strategic Management Concepts Cases” 7th edition.4. www.wikipidia.cpm5. www.google.com

The END