PRAFACE

As a part of academic requirement for completing BBA (bachelor of business administration). The students are required to undergo for 6 week internship with an organization. The internship is to serve the purpose of acquainting the student with practice of the knowledge of discipline of banking administration. For the completion of internship I select the main branch of national bank in Mian channu. In six weeks of internship I tried my best to get knowledge and training in different sections of bank. I make this report which contains important information about the sections and functions of bank.

Ayesha yaseenBBA 6TH(eve) Roll# 161

ACKNOWLEDGEMENT
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With the name of ALLAH who is most beneficial and merciful. I am heartedly thankful to ALLAH for his unlimited blessings for me. ALLAH guide and support me in each and every step.

For the completion of my report I am indebted to plenty of people for their very sincere cooperation that they extended to me at various stages. First and foremost problem that every student faces is the completion of a report is gathering of data while it is very difficult to learn & rotate in different department of the bank especially in National Bank of Pakistan where work burden is quite higher compare with other banks. Furthermore staffs of the bank are too busy in their work so that we cannot be able to learn and do according to our report requirement.

I cannot forget the kindness and cooperation of staff members of national bank of Pakistan. I have gain practical knowledge of banking functions and their processes during my internship. I have tries to get different information about banking from senior employees of bank. I have completed this task due to ALLAH, my parents, especially teachers.

Ayesha Yaseen BBA 6TH (EVE) ROLL# 161

DEDICATION
I wish to dedicate this report to my parents, brothers and sisters for their never ending moral support and prayers which always acted as a catalyst in my academic life.
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TABLE OF CONTENTS
1. 2. 3. 4. 5. Executive summary Introduction of organization Mission Vision Objectives of organization
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6. 7. 8. 9.

Corporate level strategy Business level strategy Departmental level strategy Organizational structure

10. Working of various divisions 11. Financial analysis 12. SWOT analysis 13. Suggestions and recommendations 14. Conclusion 15. Annexure

EXECUTIVE SUMMARY
I have been completed my internship in national bank of Pakistan in mian channu. 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. Efforts have been made to compile this report in such a way that activates its salient features not only for students but also for the layman. It has its head office in Karachi. It has 1250 branches in Pakistan and 18 abroad. This report is based on internship in National Bank of Pakistan. It is a famous and reputed bank of Pakistan. National Bank of Pakistan maintains first position in banking sector in Pakistan. This report is based on the activities which are performed in this bank. My report composed of different sections in which include executive summary, introduction of organization, mission, vision, objectives, cooperate, business, and departmental level strategies, organizational structure, workings of various departments, financial and SWOT analysis, suggestions, recommendations and conclusion. There are also stated the activities which I performed during my internship in the branch. During my internship I found that employees are doing hard work for the development of bank. Now their objectives have been changed. They are trying to use new technology in their bank for the growth. They have been recognized the importance of their customer. The national bank of Pakistan provides a wide range of facilities to their customers.

Bank is a dealer in capital, or dealer in money. He borrows from one party and lends to another. As a commercial bank NBP accept money as deposit, invest to earn profit and miscellaneous functions. National bank has many departments which performs its own functions. I worked in general banking department in NBP. This report contains briefly functions of different departments.

INTRODUCTION OF ORGANANIZTION
National Bank of Pakistan was established in November 20, 1949 under the National Bank of Pakistan ordinance dated November 08, 1949. Over the last sixty years, it has grown to become the countrys largest and financially strongest bank for the benefit of all its stakeholders. With challenging goals and a passion for achievement, National bank looks forward to breaking new grounds in its quest for excellence. National Bank of Pakistan has celebrated its 50th anniversary on November 9, 1999 which is a bench mark year in the history of this organization in the sense that a great deal has a changed in the bank since the passage of National Bank of Pakistan ordinance of November, 08, 1949. National bank of Pakistan maintains its position as a premier determined to set highest standard of achievements. The bank is also authorized to act as an agent and trustee of state bank where the State Bank of Pakistan has no own right and at the same time a trustee of public finance. It has its offices in all major financial centers of the including at pride places likes 100 wall streets, New York and United Nations plaza. Its international network includes branches in Bahrain, Cairo, Paris, Hong Kong, London Washington D.C shore banking units at export processing zone. National bank of Pakistan is the first bank in country to introduce and implement supervised ruler credit programmed helped small
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farmers to obtain loans at his doorsteps on easy terms and conditions. It has also played a pioneering role in introduction of profit and loss sharing (PLS) as a major toward islamization of economy. In addition to the normal to the normal business operations the bank provides special loan facilities for higher education for studies abroad and Qarz_e_Hasna to deserving poor students of medical and engineering colleges in Pakistan. The banks carry on its business through a wide network of branches locally and internationally. These branches execute their function under the supervision of local regional offices and regional offices are supervised by the head office located a magnificent building in the heart of Karachis center. In the forty five years bank has that has followed the bank has made remarkable progress testifying to several things. It is now extending to operations of bank to all branches of banking, to commerce, to industry, to trustee services as well as to agriculture and to need of the small or big business man. It is rapidly advanced from the institutions with restricted power to the biggest commercial bank in the country. It also shows its soundness of the policies that the bank has persuaded in the execution to its tasks. National bank has lead the trial in his respect, others banks have followed it. The national bank has great contribution towards building
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wide banking structure in Pakistan and serving all aspects of the national life and all classes of society. 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. As NBP is enjoying the highest rating of AAA in the industry assigned by M/s JCR-VIS Credit Rating Company Limited on a standalone basis i.e. without the benefit of the 75% government ownership. In addition to the highest credit rating in the banking sector NBP has received several awards from both local and foreign institutions of repute during 2008 including Bank of the Year award given by the The Banker magazine and the Best Foreign Exchange Bank in Pakistan awarded by Global Finance.

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MISSION
NBP will aspire to the values that make NBP truly the nations bank by: Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest

standards of services

Adopting the best international management practices Maximizing stakeholders value Discharging our responsibility as a good corporate citizen of

Pakistan andin countries where we operate.

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VISION

To be recognized as a leader and brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.

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OBJECTIVES OF ORGNIZATION
Prime objectives of National Bank of Pakistan are maintaining distinguishing brand identity, attaining quality financial performance, achieving acknowledgment in the market in terms of quality and performance. National Bank of Pakistan also aims at providing assistance to farmers, so that they can utilize their funds effectively to get the best result.

We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our

customers. Prudence to guide our business conduct. A national presence with a history of contribution to our

communities.

We shall work to
Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders.

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We aim to be peopling who

excel.

Care about relationships. Lead through the strength of our commitment and willingness to

Practice integrity, honesty and hard work. We believe that these

are measures of true success.

We have confidence that tomorrow we will be

Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the

changing needs of the internal and external environment

Spread banking habit

The main objective of national bank of Pakistan has been to include and spread banking habits among the people mobilize their saving and thus make and ever increasing contribution to the economic development of the country. It has all along persuade a policy of rapid development
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extending, its facilities to almost every center of economic potential in the country.

To handle crises
Major objective of NBP is to handle the crises because when it came into being there was jute crises in East Pakistan and it has assigned to handle those crises.

Largest network of offices

Its services have been increasing continuously and are being brought within an easy reach of the ever growing number of people. Today it provides the largest network of offices in the country, 1436.

To provide assistance
National bank provides the different types of loans to the industrial sector to increase their business activity.

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STRATEGIES
CORPORATE LEVEL STRATEGIES
At the corporate level, you are responsible for creating values through your businesses. You do so by managing your portfolio of businesses, ensuring that your businesses are successful over the long term, developing business units, and sometimes ensuring that each business is compatible with others in your portfolio. Corporate level strategy fundamentally is concerned with selection of businesses in which your company should compete and with

development and coordination of that portfolio of businesses.

Corporate level strategy is concerned with:

be in? What should the firm allocate its resources among existing business? What should be the scope of operations, what business should the firm

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What level of diversification should the firm purse , which business

represent the companys future, are the additional business the firm should enter or are there business should be targeted for termination or divestment. How diversified the corporation business be? How should the firm be structured? Are the responsibilities or each

business unit clearly identified and its accountability established? Should the firm enter into strategic alliances__cooperative, mutually

beneficial relationship with other firms?

Business level strategies

Products and services are developed by business units. The role of the corporation is to manage its business units, products and services so that each is competitive and so that each contributes to corporate purposes. A strategic business unit may be any profit center that can be planned independently from the other business units of your corporation. At business level unit the strategic issues are about both practical coordination of operating units and about developing and sustaining a competitive advantage for the products and services that are produced.
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At business level the strategy formulation phase deals with Positioning the business against rivals. Anticipating changes in demand and technologies and adjusting the

strategy to accommodate them.

Influencing the nature of competition through strategic actions such as

vertical integration. Developing and sustaining the competitive advantage for the goods and

services they are produced.

Departmental level strategies

The functional level of your organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to functional business process and value chain. Implement the general strategic outline provided by the managing

directors.

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 MD.

Plan, communicate and implement the strategic outline provided by the

Determine which products are to be followed up with products, which

are to be done with. Identifying the rite, viable products for R and D. Ensure quality confirming the standard of organization. Ensure smooth running of the product development unit. On the lookout for the new technologies to acquire. Staying tuned with the competitors R and D work. Give feedback to the corporate and business level managers about the

success of their policies or drawbacks since they are frontline of the battle.

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ORGNIZATIONAL STRUCTURE

preside nt
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Director s

Provincial chief

Regional chief

Zonal chief

Vice president

Assistant vice president

Officer grade 1,2,3

Clerical non clerical staff

Boards of directors
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Syed Ali Raza Chairman & President Syed Ali Raza is the Chairman and President of National Bank of Pakistan (NBP), the largest commercial bank of the country. Mr. Raza is a graduate of the London School of Economics and M.Sc. in Admn. Sciences as well as a Fellow Member of The Institute of Bankers in Pakistan. He started his career in 1974 with Bank of America, arising to become Managing Director and Regional Manager for the Middle East, North Africa and Pakistan for Bank of America. Mr. Tariq Kirmani Director Soon after completing his Masters in Business Administration (MBA) Mr. Kirmani embarked upon a rewarding career, starting with a multi-national Oil Company (Caltex later Chevron Pakistan) in 1969 and worked for seven years in the United States of America, United Arab Emirates and Australia in different senior management positions in Marketing Operations and Finance. In 1991, Mr. Kirmani became the first Pakistani to be elected as a Company Director of the mentioned multi-national company. Mrs. Haniya Shahid Naseem Director Mrs. Haniya Shahid Naseem is an MBA with more than fifteen years experience of working in the education, social, industrial textile and agriculture sectors of Pakistan. She has served for 5 years on the Board of a textile company, having a turnover of more than one Billion Rupees. Presently she is actively involved in the administration of Pakistan Public School Multan. She is a progressive agriculturist and actively participates in the management of her familys agricultural farms. She is a member of the Multan Chamber of Commerce and Industry, and is also on the guest faculty of IBA, Multan.

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Ms. Nazrat Bashir Director Ms. Nazrat Bashir belongs to District Management Group of Civil Services of Pakistan. She is Masters in Economics from New York University, New York, USA and Master in Psychology from Peshawar University, Peshawar She has extensively traveled abroad and has attended various international Seminars and Conferences such as on Micro Finance, Anti Money Laundering, Instruments of Financial Markets etc. Domestically too she has attended various programmes in some of very prestigious institutions of Pakistan. Mr. Ekhlaq Ahmed Secretary Board of Directors Mr. Ekhlaq Ahmed, EVP is the Company Secretary of the Bank and also the Secretary of Credit & Operations Committees. He is M.A. (Economics) from Rajshahi University, Bangladesh (former East Pakistan). He is a Diplomaed Associate Institute of Bankers, Pakistan (DAIBP) and secured overall 1 st position in order of merit and won Muslim Commercial Bank Prize in the subject of Foreign Trade & Foreign Exchange. He is an Associate of Institute of Corporate Secretaries of Pakistan (ACIS). He is also a Certified Director on the panel of Pakistan Institute of Corporate Governance (PICG) since November, 2007. Mr. Ekhlaq Ahmed is the first senior executive of the Bank who has achieved the status of Certified Director.

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NBP RETAIL BANKING PRODUCTS

Unprecedented Safety - Unprecedented Return Premium Aamdani Home Page

Unprecedented Safety - Unprecedented Return Premium Saver Home Page

President's Rozgar Scheme - Easy financing for self employment Karobar Home Page

Affordable, Flexible & Convenient home financing for all Saibaan Home Page

Take upto 20 Advance Salaries - Affordable Installations from 1 - 60 months Advance Salary Home Page

One Card does it all - ATM plus Debit Card in one Cash Card Home Page

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Invest with Confidence - Marginal Finance Facility Investor Advantage Home Page

Meet your need for ready cash against your idle gold jewelry with no minimum limits Cash n Gold Home Page

NBP KISAN Taqat Kisan Taqat Home Page

NBP's affordable agricultural program offers you a wide range of financing Kisan Dost Home Page

NBP's Internet Based Home Remittence Service Pak Remit Home Page

Personal Accident Insurance Protection Shield Home Page

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Qamar Hussain Chief Operating Officer , Head of Credit & Risk Management Group Dr. Asif A. Brohi SEVP & Group Chief, Operations Group Shahid Anwar Khan SEVP & Group Chief, Overseas Banking Group / Corporate & Investment Banking Group Ziaullah Khan SEVP & Group Chief Agriculture Finance 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 and Risk Management Mohammad Kumail Dehradunwala EVP & Chief Information Officer /Head Of Information Technology Division Aamir Sattar SVP & Divisional Head, Financial Control Division Faisal Mahmood VP & Divisional Head (A) , PMO & Project Director CBA

Different departments of NBP

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1.

General banking department

Four sub sections of general banking department

Cash department Deposit section Clearing section Remittances section

2. 3.

Credit department/advances department account department

4.

communication department

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GENERAL BANKING DEPARTMENT

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Tasks which are done in general banking department: 1. Account opening procedures 2. Basic requirements for opening an account 3.Documents required for account opening 4.Verification of the documents 5.Minimum Initial deposit and minimum balance requirements. 6. Signature Specimen Card (SS Card) 7.Procedure of account closing 8.Check book request and issuance procedure 9. Term deposit and Govt. Payment. 10. The process of filling credit slips. 11. The method of filling Deposit slips. 12. The process of evaluation pensions regarding methods. 13. The process of giving pays to the Govt. employees. 14. The scrolling of utility bills.

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Sub sections of general banking department

1. 2. 3. 4.

cash section deposit section Clearing section Remittances section

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CASH SECTION

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Cash department performs the following functions 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 bankers primary contract to repay money received for this customers Account usually by honoring his cheques.

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:

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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.

DEPOSIT SECTION

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The government deposit department handles the application of banks for government deposits, receipts and securities of collateral, calculation and receipts of interest on deposits. It records of redeposit and withdrawals and the records of collateral and of coupons of collateral.

The following types of deposits are offered by national bank 1. 2. 3. 4. 5. 6. 7. Current deposit Saving bank deposit Profit and loss sharing deposit Fixed deposit Call deposits Shot notice term deposit Foreign currency deposit
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This is the core of all departments; it accepts deposits from customers and cash the checks of customers. This department also deals with the clearing of checks system and remittance of demand drafts, telegraphic transfers, pay orders, ATM card issuance, accounts opening/closing. In this department, The officer observed that during check cash procedure, customer gives check at the counter and check is examined by Junior Officer with requirements like; date, amount in accordance with words and numbers, signature of presenter of the check either he or she is A/C holder or not. Then the checks the Payees Account Stamp (if stamped) bearer and non-bearer crossings etc. after that balance of amount is checked if amount is present then check will be sent to CD in charge who is on the duty of verifying the checks signatures with given cards signatures and then pass it to the cash section where cashier watches the verification sign of in charge and then pay the amount written in the Cheques. In this way Cheques clears and payment is made to customer.

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CLEARING SECTION
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A clearinghouse is an association of commercial banks set up in given locality for the purpose of interchange and settlement of credit claims. The functions of clearinghouse are 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.

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 drawers 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
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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 interbank 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.

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REMITTANCES SECTION
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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.One of the most frequently utilize / services is transfer of funds or remittance through banking channels although the products of remittance department are very common and elementary, it is extremely important that these products are handled with a high level of efficiency in terms of the speed, accuracy, surety of security and conformity with SBP regulations speed and accuracy is required to ensure efficient and timely service to the customer and proper execution of the departments responsibilities. Security considerations
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are important to product both the customers confidentiality and the banks interest. Awareness of and conformity with laws is essential since a contract or agreement to provide remittance services to the customers entails creation of legal obligations, e.g. That of trust or agent and principal in case of telegraphic / mail transfers.

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CREDIT /ADVANCES DEPARTMENT

By working with credit department I acquired following set of 1. 2. 3. 4. 5. 6. Types of securities Filing of the credit application Obtaining of Legal opinion Valuation of the property Analysis of the financial position Of the customer Preparing The credit proposal

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7. 8.

Evaluation of the proposal by Credit Committee Approval of the proposal on specific terms and

conditions 9. Fulfillment of the terms and conditions

10. Issuance of the credit facility 11. Reporting to the head office and to the State Bank 12.Issuance of demand draft
This department was comprised of three persons who were dealing all activities of credit department. To give loan to Businessmen and individuals is the medium to convert customer deposits into own money. As bank receives deposits at lower rates and lend them at higher rate. Basically, this department deals with the activities of various types of credits, nature of advance creation of charge, monitoring of classified advances etc. Besides, different fund based and non-fund based activities were being performed by various sources. Credit procedure was very lengthy and requires more concentration and skills to be invested in it to deal the regulations of SBP and limitations of head office as well as branch is the difficult task for credit officer. Because he is the person who makes money by lending reliable person and make decision meticulously to
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attain return with principal within required period. In this connection, I can say credit department is the cardinal bone of bank, which makes money by lending right people for right purposes for right time for right return. This department is very gist of all departments. It deals with numerous activities, which give a good financial support when officials of this department invest money of depositors into feasible projects by lending loans.The core activity of Commercial bank is to provide short-term finance, which is mostly for working capital requirements. As business concerns have money to complete the one production cycle, but it is not necessary that amount would be received just after sale, but credit sales are also made

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ACCOUNT DEPARTMENT

This was also the important department of bank. It covers all transactions, which are being, taken place in the bank. In this department mainly accounts are maintained with following statements.

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i. Daily condition report: Which presents the assets and liabilities of?The bank in one-day position? ii. Inter-branch posting reconciliation report: This also covers the Originating and responding transactions of the banks activities. Accounts department also prepares monthly statements, which are obligated to be submitted to the head office, statement of tax deduction from suppliers, statement of provident fund etc.

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COMMUNICATION DEPARTMEN T

The main functions of this department were to impart information to every concerned department, to get information from external
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resources, to accept daily mail; to fetch every information outside the bank through phone, telex, fax machines etc., this department sometimes deals with the bank account statement which is normally required by the account holders.

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SWOT ANALYSIS
SWOT analysis tells about the strength, weakness, opportunities, and threats of organization. Here I will describe the SWOT analysis of NBP which I observe.

Strength
National Bank of Pakistan is only one bank which has the facility of Western union.

In this particular scheme money is transfer in Pakistan from abroad. This is the fastest way to money transfer. You can receive the money from bank to see the name and password of particular client.

In commercial banking system NBP is only the government bank. They make their

policies according to the governments rules and regulations. It enjoys its position in the market of banking system in Pakistan. Government of Pakistan also facilitating the National Bank of Pakistan.

Due to the having intention of handling and maximizing foreign

investmentthe govt. is fully supporting the bank management due to its policy to maximize the foreign investment in the country, to get the economic prosperity.
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National Bank of Pakistan also works as an agent of State bank of

Pakistan in those Cities where SBP branches are not working.

There is also strength of NBP that they are found the ATM. They

now provide this facility to the customers.

Employees are very much loyal to NBP. Employees turnover is

very low in NBP. Very few employees are leaving the jobs in NBP. So it is very big strength that your employees are loyal to your organization.

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.

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WEAKNESS

Public respect is not very effective in NBP. Employees are not taking

care of the customers, especially in pension and bills department.

It is observed in the branch that as compared to huge business the bank

isdealing in, the no. of employees is lesser and thus there is an increased workload on the employees. Due to this the efficiency of the employees is reduced. Due to this issue here is a chance that employees may not be like their work.

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 work.

Due to wrong recruitment policy staff of NBP is not proficient in their

Despite, cultural change program the working condition of the NBP is not

up to Standard.

There is also weak point for NBP that staff is very short and more staff is

required to meet the needs of the branch work. They help from internees.

During the internship in NBP I found the problem of lack of

communication between the employees and management. They have not very much

Understanding with each other and not share the work of each other.

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There are many processes to evaluate the performance of the

employees But It has been observed that employees are less motivated and dont like To work hard. Its also a big drawback of the Organization.

Because NBP is a govt. owned organization so there is a lack of

implementation of Rules and regulations.

No major use of computers.

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OPPORTUNITIES

The economic activities are increase nowadays, so banks are contributes

more in economic activities. Banks are played role in trade and commerce. So the business of commercial banks is increase.

NBP by establishing new branches in foreign countries can expand its

business and can enjoy with the profit.

Despite of poor customer service of NBP, people still come to NBP

because of its Govt. ownership as they feel it secure therefore bank improve its deposit by giving facility of night banking and also can compete its competitors with positive steps.

At present the Pakistans Economy is growing on a very fast speed. The

rapid growth of economy has resulted in the increase in the growth rate of all economic sectors especially in the banking sector, which is growing at a fastest speed than ever, and in future the growth is expected to increase even a higher rate.

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Nowadays banking system is growing quickly so NBP have opportunities

to improve the standard and get the more share in the market.

NBP can enjoy handsome return its funding base by investing in capital

markets in the foreign countries.

In growing era there is a chance for NBP to improve itself and increase

the shares in the market because it is most trustable due to governments bank. Due to increase in overall activity of business in all over the country. In

housing and textile industry there are various types of mega projects so, the bank has a great opportunity to finance these projects at very profitable term.

THREATS

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Increase in no. of banks is a threat for National Bank of Pakistan. No. of

private banks (commercial and private) are operating their business and provide the same facilities. So increase in no. of banks is a threat for NBP.

NBP have wide network of branches. Only 130 branches are online, so it

is very difficult and time consumed to convert all branches to online system. So there is also risk involves that if one commuter of one branch suffers in problem, all system and all commuters of all branches must be turnoff.

Government Policyon NBP Govt. Policies have strong impact. A slight

change in Govt. policies may affect the performance of the bank. The bank has to work with in the regulation frame work.

There are many factors of uncertain position of the economy. Such as

political uncertainty, WTO, increase in poverty etc. As a result there are permanent threats of future risks and losses for the bank. And we all know that due to these factors many investors hesitate to invest in the Pakistani business.

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There is also a threat imposed by the competitors by introducing new

technology and it is necessary for National Bank of Pakistan to adopt new technology.

Highly skilled people and management required to meet the new

standard of banking. In NBP some employees are totally irresponsible and lack of complete knowledge of banking system. So these employees are creating continuous problems in the system of NBP.

RECOMMENDATION SUGGESTIONS

AND

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

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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 general and as a main branch in particular.

The recommendations are as follows: Delegation of authority

There is no proper delegation of authority Executive at all level should be given sufficient power and authority to make quick decisions. This will increase the effectiveness and efficiency of the organization.

Performance Appraisal
The manager should strictly monitor the performance of every staff member especially operation manager of the branch. 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.

Transfer
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Transfer 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 branches of the bank.

In adequacy of staff
In my observation, I felt that the strength of the present staff is insufficient. The staff is affecting badly due to burden of over work. The shortage of staff must be fulfilled immediately, In this way, the staff will be able to perform its duties appropriately.

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.

Performance Appraisal
The manager should strictly monitor the performance of every staff member especially operation manager of the branch. 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.

Non-installation of computer
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This is an era of science and computer. Most of the Banks functioning in Pakistan have adopted computer system. This branch is deprived of this facility yet. I suggest that Bank must be computerized. In this way, it will be easy to keep up to date records, of all accounts. So the Bank must gain benefit from this modern electronics.

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.

Favoritism and nepotism

In the during my internship in Main Branch 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. Not in one branch of NBP but as a whole. This process will also be applied in recruitment and selection process. Deserving candidate will fails to qualify. 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
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provided favorable environment to the employee to show their performances.

Complaints of Customer
There 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.

Marketing Policy
The branch should adopt various marketing strategy and promotion strategy to promote the bank and its product. But being a nations bank it did not makes so much marketing policies. 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. They
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should do more advertising through newspaper and media and through channel of personal contacts.

Inter Departmental Transfer

I 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.

Improper Distribution of Work

Proper 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.

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Needs to be Flexible in credit Policy

As 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.

Decreasing Administrative Expenses

Bank 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.

Needs to be Flexible in credit Policy

As 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.

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
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small amount of mark-up on the overdraft, which will help the bank to improve its revenue position.

Link with the Head Quarter

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. But still NBP main Branch Mian Channu did not have online facilities.

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.

Need Qualified Staff

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

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CONCLUSION
If I have to express my experience of internship in National Bank Main Branch Mian Channu I would briefly say: National Bank is a good Organization in the way that anybody can join it for his/ her long-term career. Overall working environment is

comfortable. Management of branch cares a lot of its employees and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. Employees at Bank are quite efficient. As the branch is renovated and new employees are hired, its employees have to bring their bank among the list of good banks. Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical. All the customers are entertained individually. Same kind of behavior and attention is given to all the customers. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors.

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In bank, the work is done on computers as well as manually. All the entries are made in computer. Balance is fed into the computer. This increases efficiency of the bank. During my internship training I gathered information regarding how a successful bank operational aspect decorticated with the practical. BBO system was used in bank. In the bank where I worked, there was only one BBO System. All the closing works are done on BBO. I saw that Burdon of work is on one person who is using BBO. That person, who used BBO system, could not find time to relax. Lack of commitment is also a big problem faced by the national bank of Pakistan (main branch). Employees are not committed to the work and their duties. This is very common problem.So employees are not very committed to their jobs and duties. Top management is also not very committed to this branch. There is a lack of commitment from employees and top management also from employees and Top management also. In NBP customer dealing is well, but during rush hour the customer has to wait for a long time for their turn. Its quite hard for a new customer or potential customer to get the required information. And its also very hard time for the employees of bank to deal with customers. Because dealing with a lot of customers is not an easy task. You have to listen each and every customer, encounter with their problem and solve them.
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There is poor record management and filing system .During 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. Because of Burdon of tasks it is not possible to waste a lot of time. It is not possible to the employees of bank. There should be proper filling system. A 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. Bank is now finds different mode of marketing visits to contact with potential customers.A 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. 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. But now bank is trying to improve its efficiency, its quality and service. Manager 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
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created, when the manager is not present in his office, the customer having to wait for hours. This discourages both customer and officers because they have to suffer a lot. 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. It is good for customer as well as organization. May be because of lack of time banks could not find time to train its employees. But it is good if organization find time to train its employees. There is absence of job rotation in NBP Main branch. A person placed in one- department remains their forever. It reduces career opportunities as well boredom and in the end results in career plaguing. 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 known how of the whole system. In this way they learn new duties; new works so they become more specialized. Now bank is trying to use job rotation, so that employees could familiar with new works and they could know different functions of bank.

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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. If

employees are doing work hard and their performance is increasing then bank should promote those employees. In past promotions in NBP was 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. But now banks have been changed there rules, and policies bank is now providing promotions to youngsters. People who have done their M.com, MBA etc. provided jobs with minimum 35000 pay. And after 3 year promotion becomes necessary. It is good for new employees. Bank 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
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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. There is no proper time to give information to their customer by staff of bank. To avoid this minor dissatisfaction and tension in the mind of customer, and deficiency of the service. The bank provides brochures etc. containing information in details. Some general information now placed in information notice board on the entrance where customer can see it easily and customer could familiar with the information which they need. And could also familiar with rules and regulation of bank. Regularity and punctuality shows the character of a big and good executive. But this problem is also faced by the NBP (Main branch) many executive not come at time. Bank timings start to 9 AM. But managers came after 10 AM. Customers have to wait for them.So there must be solved that problem by the Top management. Computing skills are also low, some executive are very efficient in computing skills but some are not totally aware from this

system.Western Union is worked effectively. The person who handled western Union is performing their duties well. Resource are very needy, so there must be avoid to misuse the resources but in this branch it is reverse case, there is very wrong use of the resources, employees does not take care of resources and not used them in right direction.For
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example wrong printing, extra printing, after service time staff at token used telephone almost one to two hours to take personally outside the bank. So these are the real problems which are faced by the bank. Finally itissuggested that if these problems are solved there are much more chances for increase the performance of NBP.

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