nbp internship report 1

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Internship report 2010

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CIIT Lahore

National Bank of Pakistan

Main Branch, station road Nowshera Cantt, (0382)

Khyber Pakhtoon Khwan

Submited to : Tahir Aziz Khan

(Internship Incharge)

Submitted by : Hina Khan

Registration # : BBA-f7- 027

Submition date :

COMSATS Institute of Information & Technology

Defence road off Raiwind Road, Lahore


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Table of Contents

EXECUTIVE SUMMARY----------------------------------------------------------------------------------------------3

EVOLUTTION OF BANK---------------------------------------------------------------------------------------------4

VISION AND MISSION-----------------------------------------------------------------------------------------------5

CHAPTER 1:___________________________________________________________________________________________________

ORGANIZATION PROFILE

INTRODUCTION--------------------------------------------------------------------------------------------6

History of NBP----------------------------------------------------------------------------------------------7

Branch Network--------------------------------------------------------------------------------------------9

Product Line-----------------------------------------------------------------------------------------------10

Services-----------------------------------------------------------------------------------------------------15

Groups and Divisions -----------------------------------------------------------------------------------16

Committees ------------------------------------------------------------------------------------------------22

Board of Directors ---------------------------------------------------------------------------------------27

Senior management -------------------------------------------------------------------------------------28

Organizational structure ------------------------------------------------------------------------------30

Hierarchy---------------------------------------------------------------------------------------------------31

Departments of branch---------------------------------------------------------------------------------33

SWOT Analysis--------------------------------------------------------------------------------------------38

Marketing Strategies------------------------------------------------------------------------------------41

Competitive Analysis------------------------------------------------------------------------------------41

Business Process Analysis-----------------------------------------------------------------------------42

CHAPTER 2:___________________________________________________________________________________________________

HRM in NBP------------------------------------------------------------------------------------------------44

CHAPTER 3:___________________________________________________________________________________________________

MY DUTIES -------------------------------------------------------------------------------------------------46

ACOMPLISHMENT----------------------------------------------------------------------------------------47

PROBLEMS-------------------------------------------------------------------------------------------------47

RECOMMENDATIONS------------------------------------------------------------------------------------48

BIBLIOGRAPHY-------------------------------------------------------------------------------------------49

BUSINESS JARGONS--------------------------------------------------------------------------------------50


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EXECUTIVE SUMMARY

This internship report is all about National Bank of Pakistan. National bank of Pakistanis huge organization with multiple divisions. This report includes its introduction, its

branch network, structure and major support departments working in National bank of

Pakistan. Furthermore, the overview of human resource activities are included. I spent 6

weeks in National bank of Pakistan, main branch Nowshera Cantt. I spent 2 weeks in

account opening desk first and 1 week in remittance desk, 1 week in government

section, 1 foreign exchange and 1 week in advances National bank of Pakistan keep

their records online through online banking.

In the end I would like to mention that in my tenure of Six weeks I learned a lot and

gained knowledge about the real world practices of banking. In this short time span I

could not learn much but I tried my best to learn enough. My supervisors were very

helping to me. They teach and supported me at every stage and made me understand

the real world practices of banking and its importance.


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EVOLUTION OF BANKS

There are different opinions that how the word Bank originated. Some of the authorsopinion 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 Bankrupts

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 majorpart of the Italy the word Back was italicized into Back.

Definitions of Bank

"A financial institution, which deals with money and credit. It accepts

Deposits 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.


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Vision

To be recognized as a leader and a brand synonymous with trust, highest standards of

service quality, international best practices and social responsibility.

Mission

NBP will aspire to the values that make NBP trulythe Nations Bank, by:

Institutionalizing a merit and performance culture

Creating a distinctive brand identity by providing the highest standards of

services

Adopting the best international management practices

Maximizing stakeholders value

Discharging our responsibility as a good corporate citizen of Pakistan and in

countries where we operate

Core values

Highest standards of Integrity

Institutionalizing team work and performance culture

Excellence in service

Advancement of skills for tomorrows challenges

Awareness of social and community responsibility

Value creation for all stakeholders

Goals

To enhance profitability and maximization of NBPshare through increasing leverage of

existing customer base and diversified range of products.


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INTRODUCTION

The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The bankoperates above 1200 branches in Pakistan and 18 overseas branches, 1 Subsidiary at

Almaty (Kazakhstan) and 11 Representative Offices all over the world.

.NBP is the employer of choice. The whole NBP family comprises of committed and

dedicated members with passion to serve in their respective functional areas. The Bank

has challenging work environment where merit and performance help the individuals to

explore their true potential. As a caring employer the Bank enables the employees to

excel and grow in highly congenial employment conditions and culture. The career path

is full of challenges and opportunities. The Bank has absolutely open culture where

members share and communicate freely.

National Bank of Pakistan is the largest commercial bank operating in Pakistan. It has

redefined its role and has moved from a public sector organisation into a modern

commercial bank. The Bank's services are available to individuals, corporate entities

and government. While it continues to act as trustee of public funds and as the agent to

the State Bank of Pakistan (in places where SBP does not have a presence) it has

diversified its business portfolio and is today a major lead player in the debt equity

market, corporate investment banking, retail and consumer banking, agricultural

financing, treasury services and is showing growing interest in promoting and

developing the country's small and medium enterprises and at the same time fulfilling its

social responsibilities, as a corporate citizen.

It has offloaded 23.2 percent share in the stock market, and while it has not been

completely privatized, partial privatization has taken place. It is now listed on all Stock

Exchanges of Pakistan.

National Bank of Pakistan is today a progressive, efficient, and customer focused

institution. It has developed a wide range of consumer products, to enhance business


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and cater to the different segments of society. Some schemes have been specifically

designed for the low to middle income segments of the population. These include NBP

Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.

It has implemented special credit schemes like small finance for agriculture, business

and industries, administrator to Qarz-e-Hasna loans to students, self employment

scheme for unemployed persons, public transport scheme. The Bank has expanded its

range of products and services to include Shariah Compliant Islamic Banking products.

It has taken various measures to facilitate overseas Pakistanis to send their remittances

in a convenient and efficient manner. In 2002 the Bank signed an agreement with

Western Union for expanding the base for documented remittances. More recently it

has started Electronic Home Remittances Project.

National Bank has earned recognition and numerous awards internationally. It has been

the recipient of The Bank of the Year2001, 2002, 2004 and 2005 Award by The Banker

Magazine, the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and

2007, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005,

Global Finance, Kissan Time Awards 2005 for NBP's services in the agriculture field.

It is listed amongst the Region's largest banks and also amongst the largest banks in

South Asia 2005, The Asian Banker. It has also been presented a Recognition Award

2004 for having a Gender Sensitive Managementby WEBCOP AASHA besides other

awards.

History of National Bank of Pakistan

The history of National Bank of Pakistan is part of Pakistans struggle for economic

independence. National Bank of Pakistan was established on November 9, 1949 under

the National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis

conditions which were developed after trade deadlock with India and devaluation of

Indian Rupee in 1949. . The Bank commenced its operations from November 20, 1949


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at six important jute centers in the then, East Pakistan and directed its resources in

financing of jute crop. The Banks Karachi and Lahore offices were subsequently

opened in December 1949. In 1951, the country was once again faced with a crisis in

the cotton trade when prices was crashed and touched the lowest level since

independence following the cessation of hostilities in Korea.

The precise summary of National Bank of Pakistan regarding its countrywide and

overseas operations is as fallows:

1949 National Bank of Pakistan (NBP) was established under the National Bank

of Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent

of the Central Bank wherever the State Bank did not have its own Branch. It also

undertook Government Treasury operations. Its first branches were in jute

growing areas in East Pakistan. Offices in Karachi and Lahore followed.

1950 NBP established a branch in Jeddah, Saudi Arabia.

The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4,

1947 by the former Bahawalpur State

1955 By this time NBP had branches in London and Calcutta.

1957 NBP established a branch in Baghdad, Iraq.

1962 NBP established a branch in Dar-es-Salaam, Tanganyika.

1964 The Iraqi government nationalized NBP's Baghdad branch.

1965 The Indian government seized the Calcutta branch on the outbreak of

hostilities between India and Pakistan.

1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.

1971 NBP acquired Bank of China's two branches, one in Karachi and one at

Chittagong. At separation of East Pakistan NBP lost its branches there. NBP

merged with Eastern Mercantile Bank and with Eastern Bank Corporation.

1974 The government of Pakistan nationalized NBP. As part of the concomitant

consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est.

1947).


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1977 NBP opened an offshore brain Cairo.

1994 NBP amalgamated Mehran Bank (est. 1991).

1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.

2000 NBP opened a representative office in Almaty, Kazakhstan.

2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani

banks to operate in the UK. NBP and United Bank agreed to merge their

operations to form Pakistan International Bank, of which NBP would own 45%

and United Bank 55%.

2003 NBP received permission to open a branch in Afghanistan.

2005 NBP closed its offshore branch in Cairo.

Branch Network

Today the Bank has more than 8.8 million accounts & Bank maintains its presence in all

the major financial centers of the world through over 1200 branches locally, 18 overseas

branches, 1 Subsidiary at Almaty (Kazakhstan) and 11 Representative Offices all over

the world.

The Bank has 12 Regional Computer Centers to cover various on-line and batch system

requirements of branches and controlling offices.

Presently the National Bank of Pakistan is divided into various Groups headed by

SEVPs/EVPs. Its field operations are controlled by 29 regions reporting to as many

Regional chiefs, who control 40 zones and 15 single Branch zones headed by Zonal

Chiefs; 12 corporate branches and 1249 domestic branches headed by Branch

Managers. The bank has 12 SWIFT local centers.

The National Bank of Pakistan has 156 online branches throughout the country. It hasmodernized its services by installing Automated Teller Machines (ATMs) called CASH

LINK at selected branches.


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The Bank's organizational structure reflects the three levels at which it operates:

international, national and local. The Head Office formulates and implements the

strategic, management and operational policies.

The Bank has representative offices abroad, in London, New York and Tokyo. Beijing,

Tashkent, Chicago and Toronto. Its subsidiaries are Taurus Securities Ltd, NBP

Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management Company Ltd,

and CJSC Bank, Almaty, Kazakhstan. The Bank's joint ventures are, United National

Bank (UK), First Investment Bank and NAFA, an Asset Management Company (a joint

venture with NIB Bank & Fullerton Fund Management of Singapore).

The Branch network of National Bank of Pakistan is divided into following categories

ATM network ( Total ATMs 101 & Total ATMs machines 104)

Domestic network ( over 1200 Branches)

Islamic network ( 5 Branches)

Online network ( 156 Branches)

Overseas network ( 29 Branches)

Swift network ( 12 Branches) Customer Facilitation Centers (6 Customer Facilitation Centers)

Agriculture branches ( 825 Branches)

Product Lines

The most precise definition of product is anything capable of satisfying needs, including

tangible items, services and ideas. In marketing, a product is anything that can be

offered to a market that might satisfy a want or need. The National Bank of Pakistanoffering for sale several related products individually, which is commonly known as

product lining. A product line is defined as A group of products that are closely related

because they function in a similar manner, are sold to the same customer groups, and


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are Marketed through same types of outlets, or fall within the given price ranges. The

followings are the main consumer banking products of NBP.

1. DEPOSITS

The National Bank of Pakistan offers to their clients a variety of Deposit Schemes with

personalized services at competitive rates of interest. Any Pakistani citizen can open

his/her account for any deposit scheme at any of its Branches strategically located

throughout Pakistan.

I. Current Deposits

These are payable to the customer when ever they are demanded. When a bankeraccepts a demand deposit, he incurs the obligation of paying all cheques etc, drawn

against him to the extent of the balance in the account. Bankers in Pakistan do not allow

nay profit on these deposits, and customers are required to maintain a minimum

balance, failing which incidental charges are deducted from such accounts.

II. PLS Saving Deposits

In Pakistan a Savings Deposits Account can be opened with a very small amount of

money, and the depositor is issued a cheque book for withdrawals. Profit is paid at aflexible rate calculated on six monthly bases under the Interest Free Banking System.

There is no restriction on the withdrawals from the deposit accounts but the amount of

money withdraw is deleted from the amount to be taken for calculation of products for

assessment of profit to be paid to the account holder. NBP charge Rs.500 for opening

of PLS Savings deposits.

III. Fixed Deposit Account (Time Deposits)

The deposits that can be withdrawn after a specified period of time are referred to asFixed or Term Deposits. The period for which these deposits are kept by the bank

ordinarily varies from three months to five years in accordance with the agreement

made between the customer and the banker. Profit/Return is paid to the depositors on

all fixed or Time deposits, and the rate of profit/Return varies with the duration for which


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transactions

Profit calculated on monthly and paid on half yearly basis

4. KABOUR

Minimum down payment, 10% of asset price (5% for PCO & Telecaster)

Tenure 1 to 5 years (for PCO 2 years)

Grace period 3 months

Maximum loan amount Rs. 200,000/-

Age 18-45 years

Mark-up (variable) 1 year KIBOR + 2.00% p.a. The customerwill pay markup @ 6% p.a., rest will be borne by GOP*

Life & disability insurance paid by GOP*

5. SAIBAN

Home Purchase

Home Construction

Home Renovation

Purchase of Land + Construction

Balance Transfer Facility (BTF)

(Open the Door to Your Dream Home)

Home Financing

6. ADVANCE SALARY

Easy installments of 1 to 60 months at your choice

No minimum income collateral & insurance charges required

Quick processing and fastest disbursement

The product is for permanent employees of Government, Semi Government

and Autonomous bodies receiving salaries through NBP accounts


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7. CASH CARD

Use it as an ATM in any of the ATMs in Pakistan Use it as Debit Card in any of the outlets with ORIX POS machine

Cash withdrawal up to Rs. 20,000/- per day

Account Balance Enquiry

Mini Statement (Only at NBP ATM)

PIN Change facility (Only at NBP ATM)

8. INVESTOR ADVANTAGE

Comfortable environment for trading

No security requirement, except for the customers equity

Customers equity freely available for investment

Equity acceptable in cash or approved shares

9. CASH AND GOLD

Facility of Rs. 14, 000/-against each 10 gms of net weight of Gold Ornaments

No maximum limit of cash

Repayment after one year

Roll over facility

No penalty for each repayment

10. KISAN DOST

Competitive mark-up rate

Quick & easy processing Delivery at the farmers doorstep

Technical guidance to farmers

Wide range of financing schemes for farmers


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Finance facility up to Rs. 500,000/- for landless farmers against personal guarantee

Financing available against pass book, residential/commercial

property, gold ornaments and paper security

Loan facility on revolving basis for three years (renewable on yearly basis

without documentation and approval)

11. PAK REMIT

Pakremit is an internet based Home Remittance Service. This service is available to

U.S. residents for sending money to their family and friends in Pakistan. One must have

a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to

remit funds through this channel

12. PROTECTION SHIELD

No documentation

No medical required

Premium Auto Debit facility & choice of deactivation

Coverage includes death due to:

Natural Calamities e.g. Earthquake, Flood, Cyclone etc.

Accident

Riots*

Civil Commotion*

Strikes*

Acts of Terrorism*

SERVICES

a) NBP ONLINE

Balance Enquiry

Statement of Account


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Stop Payment

Cash deposit to own and third party account

Cash withdrawal through Cheque Transfer of funds to own and third party account

b) NBP HELPLINE

For all NBP Products Enquiry

Complaint Resolution

Telesales

Call Now - 0800 80080

GROUPS

Corporate and Investment Banking

Corporate & Investment Banking Group enjoys robust relationship with premier corporate

clients. The length and breadth of our corporate clientele has been built on corporate

strategy of providing comprehensive and customized financial solutions to our corporate

customers. Varied banking and investment products are offered to the corporate clients

from working capital financing to infrastructure project, structured and syndicated

financing, divestitures, financial restructuring, mergers and acquisitions assignments and

associated financing solutions.

He group facilitated 122 projects and syndicate financing proposals which were mainly in

financing for energy and power sectors. Advisory fee on corporate finance was a major

contributor as the bank executed a number of large transactions in the energy and

infrastructure projects. The bank also focused on increasing trade finance income by

leveraging the banks relationship with clients.

Corporate & Investment Banking Group is geared to take advantage of tremendous growth

potential of corporate accounts and continued its efforts to remain a major contributor to


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the banks earnings. It is striving to market new clients and retain the existing relationships

and build market share through offering superior services, competitive pricing and wide

product range to valued corporate clients.

Commercial & Retail Banking

NBP has the largest retail client base in the country with one of the highest retail portfolios.

The banks retail strategy focuses on its extensive branch network and leveraging the

customer base. In 2009 however due to the high interest rate environment and pressure

due to non performing loans, the consumer advances registered decline.

Despite an ailing economy and adverse macroeconomic factors, the Commercial & Retail

Banking Group (C&RBG) closed 2009 with the key performance indicators being positive.

The absolute domestic deposits base increased by 22% with emphasis on growth in low

cost deposits. As a major initiative in this direction the bank launched CASA Deposit

Mobilization Scheme in late 2009 aimed at mobilizing Current / Saving Accounts through

incentivizing employees. With the increase in NPLs, the focus on recoveries has been

heightened, along with prudent growth in advances.

SME financing is an area of good future potential. Due to negative impact of high inflation

& interest rates, power shortages, fluctuation in commodity prices and reduction in export

orders, this sector suffered considerable pressure that reduced the repayment capacity of

the borrowers for existing loans and also their willingness to go for fresh financing. Due to

these factors SME loans registered decline.

Commodity support prices were raised by the Government to provide much needed

support and encouragement to the growers and as a result the loans under commodity

operations witnessed robust growth during 2009 and increased by 110%. These loans are

fully backed by GOP guarantee.


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OverseasBanking

National Bank of Pakistan is present in all major financial centers of the world; in Europe,

USA, Hong Kong, Japan as well as in the emerging markets of Central Asia, South Asia

and Far East to capture trade related business. Banks overseas network is spread in 16

countries of the world comprising of 22 branches, a wholly owned subsidiary and a Joint

Venture Bank in the United Kingdom besides three Representative Offices.

NBP overseas branches provide all kinds of banking facilities like accepting deposits,

advances to individuals and corporate clients, participation in syndications and trade

financing. The opening of Saudi Arabia branch is underway. In addition efforts areunderway to upgrade Banks existing Representative Offices in Tashkent and Beijing.

AgricultureFinance

The bank aims to cater to the entire farming and non-farming agriculture business and

provides finances ranging from short to long term for the production and development of

crops and non-crop items for agriculture business related to packing, grading, processing,

storage, marketing and exports.

Pakistans rural economy has high growth potential and offers attractive opportunities. The

banks product and services are offered to address the needs of both the farm and non

farm sectors. NBPs large rural coverage of the country is second to none and is one of

the major strengths of the bank. Presently, the agriculture financing facility is offered under

the product category of NBP Kisaan Dost where 30 agriculture financing schemes are

offered.

The importance of agriculture financing cannot be over emphasized as agriculture is key to

Pakistans future. Rural banking in Pakistan is in nascent stages and deployment of

technology and modern banking channels continue to be an evolving process.


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TreasuryManagement

NBP has the largest treasury in terms of size. Its function includes liquidity, exchange and

interest rate management. The Bank is a major player in the foreign exchange and money

market and is a primary dealer of government securities. It has the capability to offer

structured products to its customers, including derivatives. For the banking industry, the

year was very volatile in terms of interest rates, varying liquidity conditions, global credit

tightening, depreciation of Pak Rupee and high inflation resulting in significant movements

in yield curve. Treasury Management Group actively managed its portfolio and optimized

yields.

IslamicBanking

The bank believes that Islamic Banking offers good potential for growth. The bank has

opened eight (8) branches since 2007, of which three were opened in 2009. During the

last two years its asset size has grown significantly with offering of market-driven products

like Murabaha and Ijarah. Islamic Banking is making its mark by catering to the Banks

already existing large customer-base as well as exploring new and untapped markets

including SME, Commercial and Corporate. Islamic Banking is developing policies for new

products like Diminishing Musharikah, Salam and Istisna to meet customer s needs. The

overall operations showed loss as a result of higher start up cost of three new branches

opened this year.

Human Resource Management

The bank truly values its staff and the vital role they play in successful organizations. The

bank gives special attention to attracting, developing and retaining good quality human

resource. Our new hiring of top class MBAs as Management Trainees Officers (MTOs)

and search for talent within the Bank have helped in preparing second and third tier

leadership lines. Female Empowerment was launched to empower female employees

and impact communities by championing the cause of womens empowerment in the


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society. Today, NBP is determined in pursuing the policy of placing females on

responsible and challenging position as Branch Managers, Branch Operations Managers

and Customer Facilitation Officers. A number of female MTOs have been selected, trained

and posted as branch managers. Currently, 60 branches are being headed by females.

HR initiatives and strategy is amid at competitive employee compensation, training need

assessment and succession planning. NBP is striving to become an employer of choice

through improved HR policies and competitive remuneration.

Audit & Inspection

Internal Auditing is an independent, objective assurance and consulting activity designed

to add value and improve organizational operations. It helps the bank accomplish its

objectives by bringing a systematic, disciplined approach to evaluate and improve the

effectiveness of risk management, control and governance processes.

In order to restructure the Audit & inspection Group in line with international best practices

a detailed strategic plan has been evolved wherein time-bound action plan was chalked

out to implement four pronged strategy to bring about a quality change in the functioning of

audit and to change its approach from traditional procedure-based audit to a more

sophisticated Risk Based & Value Added Audit & Management Consultancy. To achieve

these goals we are hiring qualified staff, arranging appropriate training programs,

encouraging audit functionaries to acquire professional qualifications, re-engineering

systems, policies and structure of internal audit in line with our objective of undertaking

risk-based and value-added activities.

Credit and Risk Management

NBP is continuously upgrading its risk management process to identify, evaluate and

manage risk. Our focus includes analysis, evaluation and management of all risks which

include credit, liquidity, market, operational and reputation risks. The banks risk


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management policies and procedures are subject to high degree of supervision and

guidance to ensure that all risk categories are systematically identified, measured,

analyzed and proactively managed.

We have deployed value at risk (VaR) framework for measurement and monitoring of

market risk. Operational Risk Management Unit has been established that supplements

Credit and Market risk units for comprehensive risk management. Our risk management in

terms of adoption of Basel II guidelines is advancing smoothly where consultants have

been appointed to assist the bank in developing a robust framework for managing risk.

We have our internal filtration systems and approval hierarchy to ensure that proper

authority and responsibility is established whilst reducing the lead processing time of the

credit application. The bank has proper monitoring system with Credit Administration

Department (CAD) to further improve risk management function.

Compliance

Compliance is an independent function that identifies, assesses, advises, monitors and

reports on the Banks compliance risk, i.e. the risk of legal or regulatory sancti ons,

financial loss or loss to the reputation which the bank may suffer as a result of its failure to

comply with applicable laws, regulations, and codes of conduct and standards of best

practices. The bank has accelerated its efforts proactively to strengthen compliance

culture in the bank. During 2009 we have revised Compliance Review Program (CRP) to

incorporate relevant changes in rules, regulations and changing dynamics to help senior

management in identifying and assessing risk. In view of development of Compliance

Review Program, Exception Reporting Mechanism has improved and now senior

management receives report of violations promptly. Immediate corrective measures are

initiated to secure the banks interest.


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COMMITTEES AT NBP

At NBP, the Board of Directors have an active role in providing their able guidance and

support to the Banks management. For this purpose a number of Boards committees

have been constituted in the bank. These committees have well defined terms of reference

and they meet at regular intervals to review and make decisions on matters of importance

for their respective area of functioning. The following are the committees:

Name of the Committees

Number

of

Directors

Chairman of the

Committee

Audit Committee 3 Mr. Ibrar A. Mumtaz

HR Management Committee 4 Mian Kauser Hameed

I.T Committee 3 Mr. Tariq Kirmani

Board Risk Committee 3 Mr. M Ayub Khan Tarin

Agriculture Finance

Committee3 Mr. Ibrar A. Mumtaz

Islamic Banking &

Subsidiaries Committee3 Mr. Tariq Kirmani

Sports & Culture Committee 3 Mr. Sikander Hayat Jamali

a) Audit Committee

This committee has the oversight monitoring / assurance responsibility mainly relating to

the effectiveness of the Banks internal audit function, integrity of the Banks financial

statements, system of internal control, safeguarding of Banks assets and associated risks,


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compliance with the applicable legal and regulatory requirements, corporate governance

and Banks Code of Conduct and co-ordination with external auditors, making

recommendations with respect to other matters relating to their independence,

performance, appointment and remuneration and approval of provision of other than audit

services. The major achievement of the committee includes conducting a Quality

Assurance Review of the banks internal audit function through independent consultants to

align the internal audit function with international standards/best practices of corporate

governance. The Committee ensured independence of the Internal Audit function and

further strengthened it in line with the requirements of International Standards on Internal

Auditing, Institute of Internal Auditors USA, regulators and best practices of corporate

governance.

28 meetings were conducted during 2009 and discussed the matters towards fiduciary,

advisory and assurance responsibilities entrusted by the Board of Directors. The

Committee reviewed various matters during the year for improvement in the internal audit,

financial reporting, corporate governance, internal controls, risk management, compliance

with relevant laws and regulations, code of conduct and external audit etc.

b) HR Management Committee

The committee is an advisory and assurance committee which assists the board in fulfilling

its responsibilities relating to all HR policy matters. It reviews and formulates human

resource policies and best practices for attraction, retention, succession, motivation,

training and development policies to achieve corporate objectives. It also recommends to

the board the compensation, annual increase, performance bonuses, and perquisites of

the CEO, Chief Internal Auditor, Secretary to the Board, CFO and all positions reporting to

the CEO. It suggests strategies for negotiations with training and educational institutions

both nationally & internationally for collaborating in training activities. It is also responsible

for improvements in training methodology and identifying areas relevant to the needs of


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the organization. During 2009 several decisions were taken for improvement in the areas

of HR policies, planning, training & development, compensation &. pension, institutional

discipline, and other HR related areas.

The Committee also discussed and directed to establish state of the art training institute to

impart cutting edge knowledge, modern managerial and leadership skills to the employees

of the Bank and enable them to face the challenges of ever changing environment. The

committee emphasized the automation of all HR functions.

c) I.T Committee

The Committee is responsible for identifying areas of the prospective automation, reviews

and decides strategic technology implementation and provides guidance and approves

selection of appropriate technology solution; software, hardware, infrastructure and

outsourcing.

For the first time in the history of National Bank a comprehensive IT strategy for the Bank

was designed which encompasses the phase-1 focusing on Strategy for Systems Quality

Assurance & Testing Strategy (Policy, Procedures, Methodology and Framework). The

phase-2 of the strategy will cover the entire bank wide transformation and full spectrum

automation, systems and data center integration, depth and width of IT Service Portfolio,

IT Operations, plus incorporating the IT Internal Control Framework supported by COBIT,

ISO ISMS 27001 and ITIL.

The ITBC has reshaped the IT Groups Organogram (Organizational Chart) to modernize

and harmonize the entire IT Group with global and local best practices with a futuristic

view to take IT into the new millennium. The new organizational chart also supports

Enterprise Core Banking Application (CBA) Projects and the existing Banking Systems

/Applications /Platforms. ITBC kept a proactive oversight of all 20 Core Banking related

projects through monthly meetings. Provided policy level guidance on bank wide


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transformation of all 1265 branches and Head Office from physical layouts to workflows,

and data quality. ITBC assigned the Chief Information Security Officer to undertake the

revamping of the Information Security Policy to achieve harmonization with ISO

Information Security Management Systems 27001 standard, State Bank of Pakistans

guidelines and the COBIT Framework. ITBC approved the updated policy Information

Security Policy (IT Security Policy v1.1) during the year 2009. The ITBC approved the

Governance, Risk and Compliance (GRC) Stream / Project.

d) Boards Risk Committee (BRC)

BRC over sighted the risk related issues of the bank and took several decisions for

implementation. The functional scope of the Risk Management Committee is to develop

the risk management role by identifying the relevant/new risk management tools as per

Basel guidelines and developing the road map for implementing Basel II framework as per

SBP guidelines. It also works for Risk & Exposure Reporting by development of Basel IIs

economic capital management frame work. This committee also provides the reporting

and research for Board of Directors. It also reviews the liquidity position, forecasting and

projections and portfolio of the Bank. In 2009 the committee approved rating model for

corporate & commercial borrowers.

Beside this the BRC discussed in detail and took decisions on various issues; role &

responsibilities of Risk & Audit, Risk reports, Risk Management Policy, Development on

SaS Project, Regulatory Requirement, Progress on Basel II implementation, HR

requirement of RMD, IRAF grading, Sectoral Analysis, Industrial Ratings, and Status of

CIF project. Various MIS reports such as Monthly Risk Bulletin, an overview of operational

risk management, operational risk report based on fraud & forgery data & SBP penalties

were the key highlights discussed in the BRC meetings during 2009.


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e) Agriculture Finance Committee

Agriculture Finance Committee directed restructuring and reorganization of Agriculture

Finance Group and approved TOR, vision & mission statement of the group,

Livestock/Dairy Farm Financing policy and Agricultural Finance Policy Manual. Particular

emphasis was given to disbursement of finance to improve the yield/out put of this sector

while maintaining the healthy recovery ratio.

f) Islamic Banking & Subsidiaries Committee

This Committee provides strategic guidance and recommends initiatives for expansions,

mergers & acquisitions. The strategic endeavors resulted in expansion in NBP Islamic

banking branch network covering all major cities of the country. To evaluate the

commercial viability, future profitability and growth of Islamic banking, the committee

guided Islamic Banking Group to prepare business plan for the year-2010 and henceforth

strategic plan 2011-2013.

Registering the potential of Assets Management companies in Pakistan, particularly those

backed by banks, the committee directed management to look into the formation of banks

own assets management company. The committee also facilitated an agreement between

NBP Exchange Company (a wholly owned subsidiary) and Western Union for home

remittances.

g) Sports & Culture Committee

The functional scope of the Committee is to devise strategies to promote sports and

cultural activities in the bank as well as in the country. During 2009 the Committee

reviewed the progress of various activities undertaken by the Sports, Culture & CSR

Division and also approved various incentive and cash award policies for sportspersons

working for NBP. The Committee also finalized the fee structure and membership rules &

regulations of NBP Sports Club.


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The Committee also reviewed the performance of the Banks sports teams and provided

guidance and support to enhance their performance. The Committee also approved NBP

Award for Excellence in Literature and devised modalities for evaluation of books. The

Award ceremony was held in February-2009. NBP Sports Club was inaugurated in 2008

and is now fully functional and offers state of the art facilities to its members including

health club, swimming pool, indoor tennis, badminton, squash, table tennis and snooker.

BOARD OF DIRECTORS

Pursuant to Section 11 of The Banks (Nationalization) Act, 1974, the number of Directors

of the Bank shall not be less than 5 and not more than 7, excluding the President.

Name Designation

Syed Ali Raza Chairman & President

Mr. Sikandar Hayat

Jamali Director

Mian Kausar Hameed Director

Mr. Ibrar A. Mumtaz Director

Mr. Tariq

Kirmani Director

Mr. Muhammad Arshad Chaudhry Director

Mr. Mohammad Ayub Khan Tarin Director

Mr. Ekhlaq

Ahmed

Secretary Board of

Directors


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SENIOR MANAGEMENT

The senior management of National Bank of Pakistan is consists of Group chiefs, who

report directly to the Directors of Bank. The whole functions of National Bank of Pakistanare performed under these Groups. The National Bank of Pakistan has following groups

and divisions:

Corporate and investment Banking Group

Operations Group

Credit Management Group

Audit & Inspection Group

Compliance Group

HRM & Administration Group

Commercial & Retail Banking Group

Treasury Management Group

Special Assets Management Group

Employees benefit & Disbursements Group

Overseas & Coordination Group

Islamic Banking

Core Banking Application, PMO

Financial Control Division

Information Technology Group

Name Group/post

Qamar Hussain Chief Operating Officer , Head of Credit &

Risk Management Group

Dr. Asif A. Brohi SEVP & Group Chief, Operations GroupShahid Anwar Khan SEVP & Group Chief, Overseas Banking

Group / Corporate & Investment Banking

Group

Ziaullah Khan SEVP & Group Chief Agriculture Finance


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Group

Dr. Mirza Abrar Baig SEVP & Group Chief, Human Resources

Management & Administration Group

Amer Siddiqui SEVP & Group Chief, Commercial &Retail Banking Group

Tariq Jamali SEVP & Group Chief, Compliance Group

Nadeem A. Ilyas SEVP Group Chief, Assets Recovery

Group / Corporate & Investment Banking

Group

Muhammad Nusrat Vohra SEVP & Group Chief, Treasury

Management Group

Khalid Bin Shaheen SEVP & Group Chief, Global Home

Remittance Management Group

Imam Bakhsh Baloch SEVP & Group Chief, Audit & Inspection

Group

N. B. Soomro SEVP , Special Assignments, President's

Secretriate

Agha Fidaullah EVP/Group Chief, Special Assets

Management Group

Shafique Ahmed Khan EVP & Divisional Head, Islamic Banking

Division

Ekhlaq Ahmed EVP & Secretary Board of Directors

Fazal-ur-Rehman EVP & Head P&IR Division, HRM&A

Group

Muhammad Hanif EVP & Head HR & OD Division, HRM&A

Group

Muhammad Iqbal Qasim EVP & Head SC & CSR Division, HRM&A

Group

Tahira Raza EVP & Head Risk Review Division, Credit


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and Risk Management

Mohammad Kumail Dehradunwala EVP & Chief Information Officer /Head Of

Information Technology Division

Aamir Sattar SVP & Divisional Head, Financial ControlDivision

Faisal Mahmood VP & Divisional Head (A) , PMO & Project

Director CBA

ORGANIZATIONAL STRUCTURE

The Organization Structure (Annexed I) shows the internal operations and reporting lines

of the National Bank of Pakistan. The bank has clearly defined organizational structure,

which supports clear lines of communications and reporting relationships. There exists a

properly defined financial and administrative power of various committees and key

management personnel, which supports delegations of authority and accountability.

The internal operations of the Bank are organized into 15 main departments and divisions

headed by senior management of the bank and are report directly to the Board of

Directors. The organizational structure of National Bank of Pakistan is centralized because

all the decisions of the bank are taken by the top Management.

Hierarchy


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Officer Grade I OGD II OGD III

Celerical and Non clerical staff

President

Provincial Chief

Regional Chief

Zonal Chief

Voice President

Assistant Voice President

BoardDirectors


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Provincial & Regional Management

There are four executives of National Bank of Pakistan to supervise the Banks maters of

every province, as they are called Provincial Chiefs. These provincial chiefs are

responsible for the entire banking operations in their respective provinces. The provincial

management includes:

The Provincial Chief Punjab

The Provincial Chief Sind

The Provincial Chief Baluchistan

The Provincial Chief N.W.FP & Kashmir

These provinces are sub-divided into regions, the regions are controlled and manage by

Regional heads, which are responsible for the supervision in their circles and deal with

the problems of their respective Regions. The regional management of National Bank of

Pakistan is divided into two areas which are:

Overseas

Countrywide

The overseas regions include Middle East, Far East, Europe & USA, and Central Asia.

The country has been divided into 29 regions by National Bank of Pakistan to facilitate

its functions.

These regions are sub divided into Zones, the in charge of a Zone is called Zonal Chief.

Branch Management

The National Bank of Pakistan, in order to facilitate its functions on branch level

appoints Branch Managers & other staff according to branchs activities and volume of

business. The branch managers are responsible for all functions and staff within the

branch office. The job of branch managers is to take charge of the entire operation of

his branch, making sure that everything runs smoothly. The other functions involves

scheduling of employee work hours, overseeing training, hiring and firing, assuring that


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proper procedures are followed, and reporting to upper management any problems or

providing reports and updates as required by banks protocol.

The President of National Bank of Pakistan is ranked Top at the hierarchy. The other six

directors of National Bank of Pakistan are ranked second in the hierarchy. The

Provisional, Regional & Zonal chiefs are ranked 3 rd, 4th & 5th respectively. The vice

President & assistant vice Presidents of National Bank of Pakistan are ranked 6 th & 7th

respectively. The Officers Grade I, II & III are ranked 8th at the hierarchy of National

Bank of Pakistan. The lower level of National Bank of Pakistan is consist of Clerical &

non- clerical staff.

Departments of the Branch

1. Clearing House Department

2. Remittance Department

3. Deposits Department

4. Advances Department

5. Account Opening Department

6. Cash Department

7. Pension Disbursement Department

1. Clearing House Department

The Clearing System enables cheques to be paid or cleared centrally and settlement

made for receivables and payables between the banks.

2. Remittance Department

The Remittance department deals with the transfer of money from one place to another.

Funds transfer facility or remittance of funds is on of the key functions of the banks all

over the world. Remittances through banking channels save time, costs less and


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eliminate the risks involved in physical transportation of money from one place to

another. National Bank of Pakistan transfers money in the following ways.

Pay Order

Demand Draft

Pay Slip

Kinds of Remittances

Transfer within the branch

Transfer from one branch to another

Transfer from one bank to another bank in the same city Transfers from one bank to another bank in two cities.

3. Deposits Department

The primary function of National Bank of Pakistan is to accept and receive surplus

money from the people, which they willingly deposit with the Bank. Like all other Banks,

National Bank of Pakistan also take incitation to attract as much depositors as it can.

The deposit department accepts/collects deposit from accountholders.

The National Bank of Pakistan offer different deposit schemes to its customers, which

includes the following:

Current Deposits

PLS Saving Deposits

Fixed Deposit Account ( Time Deposits)

Foreign Currency Account

NBP Premium Aamdani

Foreign Currency Account

National Income Daily Account (NIDA)


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4. Advances Department

The bank is profit seeking institution. It attracts surplus balance from the customer 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 the financial

institutions, because it is the main source of earnings. Advances department is one of

the most sensitive and important department of the bank.

The advances Department receive application from intending borrowers. After receiving

application the advance department processes it further. After analyzing and detailed

investigation, they decide whether to approve the loan or not. Some loan approvals are

made by the Manager of the branch within his powers as prescribed by the banks

higher authorities, while some loan applications are submit to higher authorities for their

approval. Some advances are of the following nature

o Loan against Gold

o Agriculture advance to farmers

o Medium term advance for working capital

o

Long term advance for setting industryo Short term advance to businessman

The National Bank of Pakistan offer following products (Advances) to its customers

o NBP Saibaan

o NBP Advance Salary

o NBP Cash & Gold

o Students Loan Scheme

o NBP Karobar

5. Account Opening Department

The opening of an account is the establishment of banker-customer relationship. This

department performs the duty of opening accounts for customers. It also issues


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chequebooks to customers. A person who wishes to open an account with the bank has

to fill an account opening form obtained from any branch of National Bank of Pakistan.

The bank officer tactfully obtains information about character, integrity, responsibility,

occupation and the nature of business of the perspective customer. Any individual, who

has attained the age of majority and is of sound mind can open and maintain his/her

account. Two or more individuals may open an account jointly. Similarly, business

organizations such as sole proprietary concerns, partnership firms, and limited liability

companies as well as non-profit organizations like clubs, trusts, societies, associations

and NGOs etc, may open their accounts. The documents required for National Bank of

Pakistans Account opening are showed as Annexed VII at the end of this report.

The following requirements are necessary for opening an account.

Identification of the new customer.

Verification of customer from NADRA

Ascertaining the genuineness of the stated occupation business of the

customer.

Determining the correct residential and permanent address.

Completion of all relevant columns of the Account opening form.

Proper completion of documentation.

Functions of Account Opening Department

Providing account opening form according to the customer's requirements,

Guide the customer about the requirements of the account opening and form

filling,

Check the forms whether they are correctly completed or not,

Preparing checklist,

Stamping on the form,

Maintaining account opening register,

Pasting of forms in register after release from general banking in charge,


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Issuance of cheque books,

Issuance of accounts maintenance certificate,

Closure of account

Verification of signature in case of cheque presented before releasing of

account opening from SS card is not yet scanned

6. Cash Department

Normally cash department performs following functions

Collection of funds

Acceptance of deposits

Collection of utility bills

Payment of checks

Remittances

Act according to any standing instructions

Transfer of funds from one account to another

Verification of signatures

Posting

Handling of Prize bond

7- Pension Disbursement Department

The National Bank of Pakistan was Pakistans leading institution which performs the

function of pension payments or disbursements to pensioners. The pension

disbursement department is responsible for making pension payments to Government

Pensioners. The person who wants to receive his/her pension from National Bank of

Pakistan can open an account with any branch of National Bank of Pakistan. This

department performs following functions:

Making Pension Payments

Opening of Account of Pensioner

Entry of amount paid to pensioner in Government Pensioners Register


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Verifications of Signatures of Pensioners

Making Demand Draft Purchase Register

SWOT ANALYSIS

STRENGTHS

i. NBP has an extensive domestic branch network of over 1200 ranches located all

over Pakistan. The Bank also has a presence in 23 international locations

including the USA, United Kingdom, Europe and the Far East.

ii. NBP is working as right arm government of Pakistan as it is responsible for all

claims of government for recovery as well as payment. All depositor of NBP are

in relief that their money security is guaranteed by government of Pakistan.

iii. It acts as an agent of the Central Bank.

iv. The 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.

v. Performing social responsibilities and claiming The Nations Bank

vi. Disbursing Salaries and Pensions to the Government employees and earning

high profit on NBP.

vii. Earning commission from SBP on Government transaction

viii.Holds largest deposit base in the market share in terms of number of accounts

ix. Leading bank in agriculture financingamongst commercial banks with the market

share of %

x. Helping in earning of foreign exchange, remittances and leading agent of

Western Union Money Transfer NBP has decided to diversify the fund base by

investing in capital markets not only in Pakistan but also in the foreign countries.


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xi. The 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.

xii.Performing social responsibilities and claiming The Nations Bank

xiii.Disbursing Salaries and Pensions to the Government employees and earning

high profit on NBP-Advance Salary Loan Scheme

xiv.Earning commission from SBP on Government transaction

xv. Facing never problem of cash/currency being its Chest and Sub-chest

xvi.Holds largest deposit base in the market share in terms of number of accounts

xvii.Leading bank in agriculture financing amongst commercial banks with the

market share of 23.2%

xviii.Helping in earning of foreign exchange, remittances and leading agent of

Western Union Money Transfer NBP has decided to diversify the fund base by

investing in capital markets not only in Pakistan but also in the foreign countries.

WEAKNESSES

i. Lowest Internal Control and Compliance System,

ii. Unsatisfactory corporate culture of the Bank

iii. Physical environment and atmosphere compare to other banks is not meet the

standard

iv. Ineffectively use of technologies i.e. Information technology

v. Shortage of staff- per employee customer is very high side

vi. Technical education and training of staff is insufficient The workload in NBP is

not evenly distributed and the workload tends to be more on some employees.


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vii. Uncertainly among the employees due to threat of downsizing

viii. The up gradation of human resource is very slow in NBP

OPPORTUNITIES

i. Being a Government Bank NBP having wide scope in economic market.

ii. Trust and reliability creates chances to enhance deposit and profitability.

iii. Its vast network of domestic and overseas branches can help to expand

business.

iv. Banks deposit is increasing rapidly so there is a great opportunity to enhance its

investment and financing.

v. Being an agent of State Bank of Pakistan it can play vital role in local economy.

vi. Earning commission/exchange on Government transactions.

vii. Amongst highest bank is Asia, NBP further expand its services proudest and

earn more profit.

viii.The bank is reshaping its portfolios by investing into higher area of growth

developing core competing as a result to get maximum return.

THREATS

i. SBP penalties due to low internal control and compliance.

ii. Its staff switching over to other private banks due to more facilities.

iii. High number of complaints regarding staff behavior.


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MARKETTING STRATEGIES

Nationa bank of Pakistan offer different products and services to its customers. There

strategy is to become penetrate, offer new products and services to its customer and

capture the market. There two products Advance Salary and Gold loan are their own

products. National bank of Pakistan is penetrate, because NBP is the first bank in

Pakistan which offering these services in both rural and urban areas.

COMPETITIVE ANALYSIS

Rivalry among competitive firms

The NBP offering very low charges on demand draft and give other additional services

to the customers.

Potential entry of new competitors:

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.

Potential Development of substitute products:

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.

Bargaining Power of Suppliers:

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 thats it is competitions other banks.


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Bargaining Power of Consumers:

Now the number customers in Pakistan for banks are very high. Banks offering varietyof products and services to their customers. NBP have a large number of customs.

BUSINESS PROCESS ANALYSIS

NBP, we find a formal organization. The formal organization comes into being when

people are able to communicate with one another or willing to act and share a purpose.

National Bank of Pakistan has a centralized type of management because all the

decisions are taken by the top management. The National Bank of Pakistan has four

types of management levels which are as fallows:

Top Managers

Top managers are responsible for making organization-wide decisions and establishing

the plans and goals that affect the entire organization. These individuals typically have

titles such as executive vice president, president, managing director, chief operating

officer, chief executive officer or chairman of the board. The NBP have its top

management in their head office at Karachi. They are responsible for making the plans

and establishing goals the run their business smoothly all over Pakistan & around the

globe. Among seven member of group Chief Executive is called the president. The bank

has directors for superintendence and direction of its business. The Government

appoints six directors as members and one president. These members are also

responsible for making the policy of the bank.

Middle Managers

Middle managers include all levels of management between the first line level and the

top level of the organization. These managers manage the work of first line managers

and may have titles such as department head, project leader, plant manager or division


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manager.i NBP divided his management into various regions such as Rawalpindi

region, Gujranwala region etc. In NBP, regional management falls under this category.

They are responsible for the planning, organizing, leading and controlling of the

resources and staff of the whole region.

First Line Managers or Lower Level Management

First level managers are the lowest level of management and manage the work of non-

managerial individuals who are involved with the production or creation of the

organizations products. The branch managers of NBP fall under this category. These

managers are responsible for planning, organizing, leading and controlling the staff and

all affairs of the branch.

Non Managerial Employees

Non managerial employees are not concerned with any decision making. They are

normally specialized in their work. The nature of their job is repetitive & clerical as they

do same work again & again. The non managerial employees of NBP consist of OG-II,

OG III and clerical staff.


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CHAPTER 2:

HUMAN RESOURCE MANAGEMENT IN NBP

HR MISSION

Provide more talented Human Resource in all NBP functional areas in relation to

competition keep motivated all the employees and maintain total industrial harmony.

VALUES

We believe that

People make the organization

People collectively yield results

People have ambitions and aspirations to be distinguished and rewarded

People form the human capital to be developed and invested in.

Job Opportunities

Management Trainees

Professionals

TRAINING DEVELOPMENTS

Staff colleges are located in different cities of Pakistan for development of employees.

These are as follow

JNMDC

Staff College Karachi

Staff College Lahore.


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Staff College Peshawar

Training Programs

Training programs held after some time.

HR Forum

o NBP Newsline

o Management Brief

o Employee Communication Programme

Employee Communication is considered a vital tool for employee motivation and

promoting their commitment and loyalty with the organization. It also helps the

organization to get the employee feedback on important matters.

Employee Communication Program has been developed to keep our employees

informed about the Bank's products and services, prudential regulations, system and

controls, compliance of standard procedure and regulatory requirements, customer

service requisites as well as technological developments particularly automation in

banking functions.

HR Events

Conference

Female Empowerment

Work shopDialogue Sessions

Quiz Programs


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Functions

HRM group performs following functions:

Deals from placing job advertisements to timely recruitment of competent

personnel by using modern selection techniques.

Systematically observes & measures employees/candidates performance for

the purpose of selection and promotions.

Facilitates in establishing successful productive working relationships through

effectively orienting new employees to their respective departments/divisions and

to their positions.

Encourages employees to seek promotion/transfers to fill internal openings and

meet employees personal objectives.

Foster a culture of acknowledgement and appreciation amongst employees for

introducing innovative business practices, showing extra ordinary efforts for

achievement of goals and enhancing Banks corporate image uses various

methods of recognition ranging from simple Thank you letters to elaborate

celebrations and monetary rewards.

Conducting motivation surveys and developing market based employee

satisfaction & retention strategies.

Conduction of evaluation of positions and grades to ascertain employees

position in the grade structure.

This Group supervises all the staff colleges, at Karachi, Islamabad, Lahore and

Peshawar.

DUTIES

1- I have passed my first 2 weeks at account opening desk. There my duties were

t0 check cheque with entries of day book.

2- Getting information from customer in case of account opening.


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3- Issue cheque token.

4- I have to issue cheque books to the customers.

5- Maintain subsidiary book.6- Maintain accounting opening entrance ledger.

At remittance desk my duties were

1- Check drafts with their advices and pass them and noted them down in

register.

2- Drawing government drafts and vouchers.

At foreign exchange desk my duties were

1- Dealing with customers and getting information from them.

At government section my duty was to scrolling government cheques and drafts.

AccomplishmentsI have learn there about account opening, that how to deal customer, what information

should be gathered, and what information should be given to customers.

I learn there what actions take place in bank. How to interact with customers and

colleagues. These all things will help me in my professional life.

PROBLEMS

1- Lack of motivation.

2- The second problem is favoritism. People think that favorite people are more

promoted.

3- An other problem ia burdon of work. Some times one person does work of 2 or 3

seats.


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4- Another problem was lack of computerized system. Employees at national bank

dont know that how to use computers.

5- Photocopy machine is not available in the bank for photocopy of any document.6- National bank dealing with customer is well but in rush hours the customer has to

wait for long time and sometimes banks employees misbehave with customer.

7- During my internship I observed that some employees didnt done their job

properly and they didnt help each other.

8- Work 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. Due to which

customers have to wait for long time and dissatisfaction creates in customers.

9- Lack of job rotation. Due to this problem employees didnt know the work of each

other. No body had complete knowledge about all jobs of bank.

10- Environment was very uncomfortable for females.

11- There was shortage of space for customer to wait in bank.

12- There was no seating arrangement for customers.

13- Lack of security. Any body can come in banks premises and inside the counter.

14- Absence of canteen.

15- Lack of trained employees.

16- Less authority with manager.

17- Lack of control over employees.

18- Internees are given less importance. They do not have proper procedure for

training. They do not have any schedule for internees.

SUGGESTIONS

1- There must be motivation workshop for employees.

2- Good work should be awarded.

3- Work should be equally distributed.


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4- Computers must be available to all employees which makes their work easy and

save their time.

5- Computer training must be given to employees.

6- There must be a photocopy machine in the bank.

7- Internees should be given more formal training.

8- There must be proper seating plan for customers.

9- There must be canteen in bank premisis.

10- There must be a prayer room for female employees.

11- The bank should improve the quality of training of its employees and the integrity,

controls and efficiency of its systems,12- The bank should improve its recruitment, retention and development and to

reform the Banks pension scheme.

13- The branches should reduce its large expenses in order to increase the value of

the bank.

BIBLIOGRAPHY

All the information provided by making this internship report has been gathered

during doing internship in National bank of Pakistan and from the following sources

Mr. Nasir Jamal Paracha, (Branch Manager, Assist voice president).

Mr. Subhan Ali, (Account opening officer,)

Mr. Rafiq , (Remittance officer).

Mr. Anwar Ali, ( Foreign Exchange officer).

Mr. shams uz Zaman, (Advance officer).

www.nbp.com
http://www.nbp.com/http://www.nbp.com/


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BUSINESS JARGONS

DD (Demand Draft)

DDP (Demand Draft Purchase)

F-50 (Debit Voucher)

F-87 (Cheques voucher)

F-86 (Cash Voucher)

F-51 (Credit Voucher)

F-117

MT (Draft)

nbp internship report 1

Documents