FIN619 Latest Spring 2011 Internship Report of National Bank of Pakistan

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FIN619 Latest Spring 2011 Internship report of National Bank of
Pakistan
Posted by + M.Tariq Malik on October 12, 2011 at 6:07pm in FINI619 Internship Report-Finance
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Permalink Reply by + M.Tariq Malik on October 12, 2011 at 6:09pm
Executive summary

I am doing my internship in famous and reputed bank of Pakistan the name of that bank is National Bank of Pakistan the report is based on my
six weeks internship program in National Bank of Pakistan. According to my observation during internship the NBP maintains an excellent
position in banking sectors in Pakistan and this is based on the over all performance of National Bank of Pakistan. This report contains the
detail of NBP and the departments where I worked during internship and these departments includes Account Opening Department, Bill
Collection Department, Cash Department, Credit Department and Remittance Department.
It also includes the Ratio Analysis and these ratios include all ratios that my university required with complete formula, working, table, graph
and interpretation.
I also mention my work experience during internship in different sectors. I also discuss in my report the executive summary of NBP and
Recommendations for Improvement and the sources that I used to make this report. I have learned and informed about different aspects
specially about banking sector, its my 1
st
working experience so it will help me while I will be professional.
NBP has 1254 nationwide and almost 25 branches operating in other foreign countries including USA, China, France, Hong Kong, Azerbaijan,
Bangladesh, and Hong Kong.
The objective of this Internship was to explore the issues relating to Finance and to find out problems regarding the theoretical concepts with
practical experience working in an organization during the internship and study the system of National Bank of Pakistan. According to my
knowledge there is much possible perfections, which we can make positive changes in the system of NBP in coming years.
In this my NBP report I also talk about the way of investment, rates of investment, all types of financing and loans services the National Bank
of Pakistan provides. The problems of branch where I am doing internship F-10 markaz branch are also discussed.

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Table of content
Lesson No. Title / Topic Page No.
1. Title page 1
a. Name of the organization 1
b. Name of the Internee, Student ID and session 1
c. Submission date of the internship report 1
d. Name of the University 1
e. VU logo 1
2. Letter of Undertaking 2
3. Scanned copy of the internship 3
4. Dedication 4
5. Acknowledgement 5
6 Executive summary 6
7. Table of contents
8. Brief introduction of the organizations business sector 9-10
9. Overview of the organization 11-21
a. Brief history 11-13
b. Organizational Hierarchy chart 14-15
c. Business volume (Total number of stock, shares, bonds/
commodities, future contracts planned for a particular
period etc).
16
d. Product lines (List complete range of products/ services of
the organization)
17
e. Competitors 18
f. Brief Introduction of all the departments 19-20
g. Comments on the organizational structure 21
10. Plan of your internship program 22
a. A brief introduction of the branch where you did your
internship
17
b. Starting and ending dates of your internship 17
c. Names of the departments in which you got training and the
duration of your
training
17
11. Training program 23
1
st
Account Opening Department 23
2
nd
Bill Collection Department 25
3
rd
Cash Department 26
4
th
Credit Department 27
5
th
Remittance Department 28
12. Ratio Analysis 29
a) Liquidity Ratios
Liquidity ratios measure a firms ability to meet its current
obligations.
29
Current Ratio 29
Acid Test Ratio 31
Working capital 33
b) Leverage Ratios
Leverage ratios measure the degree of protection of suppliers
of long term funds.
35
Times Interest Earned 35
Debt Ratio 37
Debt / Equity Ratio 38
Debt to Tangible Net worth Ratio 40
Total Capitalization Ratio 41
c) Profitability Ratios
Profitability ratios measure the earning ability of a firm.
43
Net Profit Margin 43
Return on Assets 45
DuPont Return on Assets 47
Operating Income Margin 49
Return on Operating Assets 50
Return on Total Equity 52
Gross Profit Margin 54
d) Activity Ratios
Activity ratios measure a firm's ability to convert different
accounts within their balance sheets into cash or sales.
55
Total Assets Turnover 56
Fixed Assets Turnover 57
e) Market Ratios
Market ratios are commonly used by the investors to assess
the performance of a business as an investment and also the
cost of issuing stock.
59
Dividend per share 59
Earning per Share 61
Price/Earning Ratio 63
13. Future Prospects of the Organization 65
14. Conclusion 66-67
15. Recommendations for Improvement 68-70
16. Reference & Sources used 71
17. Annexes 71

Brief introduction of the organizations business sector

Am doing my internship in NBP f-10 branch markaz Islamabad now I will discuss the brief introduction of national Bank of Pakistan in
business sector
The national bank of Pakistan was established in 9
th
November 1949 under the ordinance XIX. The NBP commenced its operations from 20
th
November 1949. The Bank was incorporated under the National Bank of Pakistan Ordinance 1949 and is listed there Pakistani stock
exchanges. The bank controls treasury dealings for the Government of Pakistan as a representative to the State Bank of Pakistan. NBP offers a
commercial banking and interrelated services in Pakistan as well as out side of Pakistan. The business sector of NBP is banking sector and the
banks plays a vital role in an economy of country NBP also played an important role NBP also provide banking or financial services in
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Pakistan bank plays a major part in economy now a days the current economics crisis in united stares and Europe as well as Pakistan as we see
day by day down sizing and is because the ongoing weakness of major bank and the result of all this is credit and capital crush so we can say
its prove from history that the banking sector is plays a vary important role in national and global economy.
National bank of Pakistan provides to its customers the following benefits saving accounts, home financing, personal loans, ATM and debit
cards, financing facility for stock investors, Internet based home remittance service, cash against gold, and personal accident insurance these
benefits is vary useful for customers.
In between 2002 to 2007 the accelerated economy growth of Pakistan was underpinned by a strong banking sector the banking industry assets
is above $60 its profit remain high and its NPLS are low. Pakistan is Islamic country and the national bank of Pakistan offers is Islamic banking
services these services include deposit schemes, like current deposit scheme and profit and loss sharing deposit scheme and also financing
facilities and also provided letters of credit facility, issuance of bank drafts and pay orders, handling of remittances, government collections,
collection of export bills and local bills, and utility bills collection services. It also provided international banking trade that provide services
comprise letters of credit, trade financing, international payments and collection services, structured trade finance, document presentation and
payment services, pre and postshipment financing, banktobank reimbursements, documentary credits, import finance, shipping guarantees,
and cash management solutions. NBP is government bank so peoples trust to NBP is high as compare other banks and NBP provides trustee
services to national investment trust, long-term credit fund, and endowment fund for student loans scheme.

. Overview of the organization
a. Brief history
History: NBP was established under the National Bank of Pakistan Ordinance in November 8 1949 in Pakistan and was 100% government
owned. The need for the establishment came due to the reason of newly country with economics crisis. In July 1948 to carry on the
responsibilities of issuing the currency and most importantly controlling the flow of money in side the country.
Role: The Special Role of National Bank of Pakistan is occupies a unique position in the financial sector of Pakistan. It also acts as an agent of
the Central Bank wherever the State Bank does not have its own Branch. It also undertakes Government Treasury operations.
Ownership: NBP is 100% owned by the Government of Pakistan.
Branch Network: NBP has an extensive domestic branch network of over 1500 branches located all over Pakistan. The Bank also has a
presence in 24 international locations including the USA, United Kingdom, Europe and the Far East.
Deposits of National bank of Pakistan: NBP holds 24.6% share of time and demand deposits in the country. Local currency deposits
comprise 67% of bank's total deposits while foreign currency deposits account for the rest.
Head office and Branches: Head office of national bank is in Karachi with their 1431 branches local and 24 branches internationally.
Provincial Headquarters: Sindh 06, Baluchistan 02, Punjab 14, NWFP 05, Azad Kashmir 02, total 29.
Awarded: National bank of Pakistan was given awarded of best bank of the year in 2001, 2002, and 2004 by the banker a publication of
financial times London. In 2005 the national bank of Pakistan is also given best bank of the year by the bankers by global finance magazine.
National Bank has earned recognition and numerous awards internationally. It has been the recipient of The Bank of the Year 2001, 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, Kisan 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 Management by WEBCOP AASHA besides other awards.
Precise Summary of National Bank of Pakistan year by year
The precise summary of National Bank of Pakistan regarding its countrywide and overseas operations is as fallows:
In the year 1949 National Bank of Pakistan was established under the National Bank of Pakistan Ordinance 1949 and was 100% govt.-owned.
In the year 1950 NBP established a branch in Jeddah, Saudi Arabia.
The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4,
In the year 1947 by the former Bahawalpur State
In the year 1955 By this time NBP had branches in London and Calcutta.
In the year 1957 NBP established a branch in Baghdad, Iraq.
In the year 1962 NBP established a branch in Dar-es-Salaam, Tanganyika.
In the year 1964 The Iraqi government nationalized NBP's Baghdad branch.
In the year 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities between India and Pakistan.
In the year 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch.
In the year 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost
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its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation.
In the year 1974 the government of Pakistan nationalized NBP. As part of the concomitant consolidation of the banking sector, NBP acquired
Bank of Bahawalpur (est. 1947).
In the year 1977 NBP opened an offshore brain Cairo.
In the year 1994 NBP amalgamated Mehran Bank (est. 1991).
In the year 1997 NBP's branch in Ashgabat, Turkmenistan commenced operations.
In the year 2000 NBP opened a representative office in Almaty, Kazakhstan.
In the year 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%.
In the year 2003 NBP received permission to open a branch in Afghanistan.
In the year 2005 NBP closed its offshore branch in Cairo which opened in 1977.

Organizational Hierarchy chart

Syed Ali Raza Chairman NBP Board of Directors
Qamar Hussain President NBP
MR. Tariq Kirmni Director
Mrs. Haniya Shahid Naseem Director
Ms Nazrat Bsahir Director
Mr. Ekhlaq Ahmed Secretary Board of Directors

Organizational Hierarchy Chart at NBP Head Office Karachi

Organization Chart of NBP


Business volume

In Millions

Description 2006 2007 2008 2009 2010
Profit before
tax
26,311 28,061 23,001 21,300 2,4,415
Profit after
tax
17,022 19,034 15,459 17,562 17,563
Shareholders
equity
353,045 69,271 81,367 94,142 103,762
Advances
net
316,110 340,319 412,987 475,243 477,507
Total Assets 635,133 762,194 817,758 944,583 1,035,025
Deposits 501,672 591,907 624,939 727,465 832,152
Investments 139,947 211,146 170,822 217,643 301,324
Earnings per
share
12.65 14.15 11.49 13.05 13.05

Product lines
The product lines is given below

PREMIUM AMDANI
PREMIUM SAVER
SAIBAAN
ADVANCE SALARY
CASH CARD
INVESTOR ADVANTAGE
CASH AND GOLD
KISAN TAQAT
KISAN DOST
PAK REMIT
PROTECTION SHIELD

Services

Islamic Banking
Student Loan Scheme
Demand Drafts(DD)
Equity Investment
Commercial Finance
Trade Finance
International Finance
Home Finance
Foreign Currency Account
Short Term Investment
NIDA( National Income Daily Account)
Foreign remittance
Travelers Cheques
Swift System
Letter of Credit
Pay Order (PO)
Mail Transfer (MT)

Competitors

Now a day in this world of competition the NBP is facing much competition. The competitors list of NBP is very large as there are many
private and commercial banks operating in the country. Competitors of the NBP which are given below

MCB Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Saudi Pak Bank Limited
Atlas Bank Limited
SILKBANK Limited
United Bank Limited
Allied Bank Limited
Askari Commercial Bank Limited
Bank Al-Habib Limited
Bank Al-Falah Limited.
Standard Chartered Bank Limited
First Women Bank
The Bank of Khyber
Bank of Punjab
Faysal Bank Limited
Atlas Bank Limited
Bank Alfalah Limited
Soneri Bank Limited
Askari Bank Limited

. Brief Introduction of all the departments
There are many departments of National Bank of Pakistan I will write the following main departments of National Bank of Pakistan F-10
Markaz branch and where I got training as internee are given below:
1
st
Account Opening Department
2
nd
Bill Collection Department
3
rd
Cash Department
4
th
Credit Department
5
th
Remittance Department
I already describe in detail of these entire department in my internship report One by one I will summarize or over view all these again.
1
st
Account Opening Department:
In my 1
st
2 weeks of internship I work as an internee in account opening department in NBP. Its a major department of NBP the basic purpose
of Account Opening Department the relationship between banker-customer. Account opening department performs the duty of opening
accounts and issues checkbooks to clients. A person who requests to open an account with the bank has to fill an account opening form
obtained from any branch of National Bank of Pakistan.
Types of accounts that are opened
I learned in my training in account opening department the following account is opened.
1. PLS Account or PLS Saving Account
2. Current Account
3. Fixed Deposit Account
2
nd
Bill Collection Department:
I also work in the bill collection department in NBP during my internship. The basic purpose of bill collection department is collected utility
bills from customers that he pays at end of every month
These bills include
Water bills
Gas bills
Electricity bills
Telephone bills
3
rd
Cash Department:
I also work in cash departments during internship in NBP. Cash depart in vary sensitive department o every bank as well as National Bank of
Pakistan No body is allowed freely like other department this department all depend on cash a security guard is also standing for safe from theft
and also sensitive department some times customer pays frauds are made in this department so extra care needed in this department.
4
th
Credit Department:
In my internship program in NBP I also work in credit department. The basic purpose of this department id to collect spare, extra or surplus
money or currency from peoples or customers at vary low rate and gives or provided lend this money at high rates to get more and more profit.
Now a days NBP gives a vary low amount to customer because in Pakistan there is instability and day by day the investor go out from Pakistan
because of in security financial crises is also big cause of it so the loan ratio is vary low down day by day with the passage of time.
5
th
Remittance Department:
Finally in my last week of internship as an internee in NBP I work in Remittance Department. The remittance department transfers the money
from domestic to international level. According to my learning there are two categories of remittance department 1
st
one is domestic or local
remittance department and the 2
nd
one is foreign remittance department. In local remittance the transfer money with in national or domestic
boundaries and in foreign transfer money out side from national or international boundaries In my internship program the manager told me the
main functions of Remittance Department these main or important functions takes places in the following ways I observed these are Closing
and scrolling of government collections, issuing of payment order, issuing of demand draft, issuing of call deposit, issuing of Mail transfer and
issuing of call deposit.
In NBP remittance takes places in the following ways. These ways are given below.
1
st
Telegraphic / Mail Transfers and its easy and fastest way
2
nd
one is Demand Draft / Pay Orders

g. Comments on the organizational structure

I understand during my internship program the Organizational Structure NBP is centralized but need some changes with the passage of time
because in this world day by day technology changes and its necessary to change the Organizational Structure time by time and I also observed
the NBP is the oldest bank of in Pakistan and in last 62 years a lot of changes in NBP Organizational Structure but I observed the
Organizational Structure is not professionally developed and implemented. In NBP F-10 Markaz Branch where I work as internee in that
department all employees in different department work properly and here Organizational Structure but also need some changes.

Plan of My internship program
Introduction of branch
Name of branch: National Bank of Pakistan F-10 Markaz Branch
City: Islamabad
Branch Code: 1933
Branch manager: Miss Asia Aslam
Operating manager: Mr. Ali
Phone Number: +92-051-9218734
I did my internship or training from National bank of Pakistan F-10/4 Markaz Islamabad and branch code is 1933.Under the branch manager
Miss Asia Aslam. In this branch of national bank the branch manager is Miss Asia Aslam and Mr. Ali is operating manager both are superior
working and very fair with their job. When I start my internship I face many difficulties because its my 1
st
experience to do training or
internship in any where so I dont have experience practical work before but here cooperative management specially miss Asia Aslam Branch
manager help me for my this 1
st
to complete my tasks efficiently and I observed the other management members or staff is also vary
cooperative who also help me in a friendly manners. In start am little bit confuse but after the observed the cooperation of staff I enjoy my
internship I also appreciate and thanks all management who help me to complete my tasks in good manners.
Duration of My training or Internship Program

The starting date of my Internship Program is May 9, 2011
The ending date of my Internship Program is June 22, 2011
Name of the Department in which I worked in my internship.

Name of the Department Duration
Account Opening Department 2 Weeks
Bill Collection Department 1 Week
Cash Department 1 Week
Remittance Department. 1 Week

Training program
My training or internship program from National Bank of Pakistan F-10 Markaz Branch Islamabad I also mention the departments where I
work as internee that is given below.

1
st
2
nd
3
rd
Cash Department
4
th
Credit Department
5
th

One By one I will describe in detail of all my training program departments

1
st
The account opening department is a first department where I learned and spent my internship maximum periods 2 weeks as compares to other
departments. In my vary 1
st
day I am little bit confused to start and learned about department because its my 1
st
experience practically but the
cooperative staff and branch manager help me to understand all procedure now I observed how the employee work in this department and what
is the requirements to open the account and what is the rules and procedure to follow the customer. In this department requires some basic
requirements for open an account of customer the customer must have the reference of any residence of Pakistan who has already account
holder of National Bank of Pakistan and when customer gives reference of some ones who has account in NBP the bank confirms it with
NADRA. After 3 or 4 days I learned many things about opening account and rules and procedures and also the requirements like what is the
title of account, address of the customer, recent ID card number, National tax number, PTCL and Mobile number amount deposit, signature,
Law must qualify the customer, Age of majority and must be of sound mind
Than I learned and opened a account of customer under supervision of staff and these procedure must be followed the customer come to bank
and meet the manager about account opening procedure than manager guide him or her about the account he or she wants to open in the bank
than manager guide me and I follow the rules now give to customer account opening form along with document like signature card and Pay-in-
slip. Than the customer fill the account opening from if he has any difficulty than management or account opening officer guide him or her and
when customer fill are form this form sent to manager for approval than the concerned officer gives new account number and guide to deposit
initial deposit in cash counter. And check book gives to customer according to customer need or requirement because some check books has
25, 50 and more its depend on customer requirement. When I opened some accounts than I know the procedure and after this its vary easy for
me because I know now all procedures to open a accounts and I opened some accounts

Types of accounts that are opened
I learned in my training in account opening department the following account is opened.

1. PLS Account or PLS Saving Account
2. Current Account
3. Fixed Deposit Account

The details of these accounts are given below one by one.

1. 1. PLS Account or PLS Saving Account
1
st
I would like to discuss the PLS account or PLS saving account that I learned from manager it is interest free account mostly the lower or
middle income level or small business man, Allam or Moulana or people who dont like interest like usually make such deposit in this account
the transaction. In this account the transaction is not every day or daily. Funds can normally deposited through pay order, cash, check etc.

1. 2. Current Account
2
nd
I like to discuss the current account that I learned from manager this account or current account its depend on daily bases normally through
cheque, ATM, Pay order etc drawn on the bank and these deposit stand the current liability of the bank. The bank keep fund of his hand and
customer normally use this account mostly now a days through ATM because its vary easy and advanced method. And there is no limit for
deposit.

1. 3. Fixed Deposit Account
3
rd
I would like to discuss the fixed deposit account I learned from manager that this account normally opened and high faculty or extra
ordinary people or business man for a long period of time and this type of account is less use as compare to other account. In this account the
customer invest in different sector for a long period of time where his or her money is saved from theft and also with higher return. The other
account I opened because these are daily use accounts and normal or middle class peoples use but this fixes account I dont opened because in
my in my period of internship there in only 1 or 2 peoples who opened this account I learned but not accurate so I got more information from
the manager of the bank.

2
nd
In my internship program I also worked in Bill Collection department in one week.
In 1
st
day in bill collection department 1 get information from manager about the function, rules and procedure involve in bill collection
department after get information from manager I see or observed bill collection department collects different utility bills which peoples pay
every months.
These bills include
Water bills
Gas bills
Electricity bills
Telephone bills
I collect some bills according to instruction that manager gives me about bill collection department and in bill collection department my duty is
when collect bill is must see the due date and whats the amount collect in due date and these are written in every bill and after date because
after date extra amount paid or late payment charges paid by the customer if bill not paid within due date. Also mention in bill manually if
customer gives big note like note of RS 5000 and bill id 1050 than in bill written manually 5000-1050 = 3950 it means customer give 5000 note
and bill amount is 1050 we deduct from 5000 and we gives 3950 the remaining amount to customer. The amount received like in due date
amount received circle the received amount within due date and if payment id after due date circle after date and in after date late payment
charges included and circle and collect money and than bank stamp and also sigh on it is its guarantee that this means f-10 markaz Islamabad
branch received this bill. The bank also charges commission in each bill that is revenue of the bank and also for government of Pakistan. At the
end of the day all amount counts count that received from from received against bill collection from customers and gives by the relevant bill
collection department and bill collection department sends mail to the head office.

3
rd
Cash Department
In duration of my internship in NBP as internee I work in cash department fro 1 week. In cash department 1
st
I try to understand working
procedure in this department I also observed that cash department is the most important section in the bank. Cash department perform the
function of bank payment and receipt, government receipt and payment and collection of utility bills
The cash department is vary important and sensitive because in this department no body is allowed freely like other department this department
all depend on cash a security guard is also standing for safe from theft and also sensitive department some times customer pays frauds are made
in this department so extra care needed in this department.
And if closing the balance is not match than the cashier must match it before leave this department some times hours takes to match cash in this
department if cash not match than cashier pay with its own pay or with own recourses
So cash department is vary sensitive department mostly people come for the purpose of cash in this department with drawn and deposit if any
account holder comes to draw the amount it must b checked the total amount on cheque, date, signature of the account holder, and then he gets
payment form the cash counter from the cashier and some account holder comes for the purpose of deposit the money in cash department.

4
th
Credit Department
As an internee I work and observed in credit department for the duration of 1 week in National Bank of Pakistan F-10 Markaz Branch
Islamabad.
The basic purpose of this department id to collect spare, extra or surplus money or currency from peoples or customers at vary low rate and
gives or provided lend this money at high rates to get more and more profit.
According to my observation and work as internee in NBP during my internship I observe that the basic purpose of credit department is provide
load to load seekers.
These peoples get loan from bank and fulfill our requirements and bank charges interest against. I also observe now a days of technology every
bank adopt this method to get profit. I observed when national bank of Pakistan F-10 branch Islamabad when NBP provide or gives to some
one some basic information collect by the bank to reduce fraud because now a days some fraud peoples gets illegally loan from bank and cant
return to bank some fraud peoples write wrong address and some are going out side of country and thats a big loss of bank so bank now a days
bank confirm it with the customers near police station about the reputation of customer and NBP required some basic information and criteria
before gives loan to peoples some basic information that banks gets like customer name, National Identity Card, The required documents
checked is it in original from or not.
Now a days NBP gives a vary low amount to customer because in Pakistan there is instability and day by day the investor go out from Pakistan
because of in security financial crises is also big cause of it so the loan ratio is vary low down day by day with the passage of time.


5
th
In my internship program and also last week of my internship I also worked in Remittance department in one week .I observed or learned that
main purpose of Remittance department is to move money from one place to another place. The remittance department transfers the money
from domestic to international level. According to my learning there are two categories of remittance department 1
st
one is domestic or local
remittance department and the 2
nd
one is foreign remittance department.
In local remittance the transfer money with in national or domestic boundaries and in foreign transfer money out side from national or
international boundaries In my internship program the manager told me the main functions of Remittance Department these main or important
functions takes places in the following ways I observed these are Closing and scrolling of government collections, issuing of payment order,
issuing of demand draft, issuing of call deposit, issuing of Mail transfer and issuing of call deposit.
When I work in this department I also observed the important particulars of demand draft filled, Name of the branch on which draft is drawn,
Address of the applicant, signature of the applicant, exchange rates of the bank, Total amount in figure and also in words, name of the person
who receive the money. Under the supervision manager I fill some demand draft that gives me some useful information about this department
and I also want to get more and more information about this department and manager help me a lot.
In NBP remittance takes places in the following ways. These ways are given below.
1
st
Telegraphic / Mail Transfers and its easy and fastest way and 2
nd
one is Demand Draft / Pay Orders
Bank is responsible for remittance from one bank to another bank in case
This is my last week on internship in national bank of Pakistan and word in remittance department I work hard also cooperative staff and
manager really help me for this am thankful to all management and staff of National Bank of Pakistan F-10 branch and also thankful fro bank
branch manager Miss Asia Aslam she help me lot in my all Internship

Ratio Analysis

a) Liquidity Ratios
Liquidity ratios measure a firms ability to meet its current obligations.
These include:
Current Ratio
Acid Test Ratio
Working capital

Name of the ratio
Current ratio
FORMULLA OF CURRENT RATIO
The formula of current ratio is given below
With the help of formula we calculate or find current ratio

Current Ratio = Current Assets / Current Liabilities

It means we add all current assets after add all current assets we add all current liabilities and than divide current ratio with current liabilities
As we shown in given below

Show in table
YEARS 2008 2009 2010
Current assets 584,977,140 645,064,165 693,463,980
Current liabilities 682,905,461 725,293,720 867,626,367
Current Ratio 0.86 : 1 0.89 : 1 0.80 : 1

Working:

Which short term advances and investments?

Only fixed deposits will not be considered here
Held for trading and available for sale will be considered as current
Current asset = Cash and balances with treasury banks + Balances with other banks + Lending to financial institution-net + short term
Investment + Short term Advances + Other asset (Only Short Term)
After adding all current assets according to given format the current assets of 2008 = 584,977,140 and 2009 = 645,064,165 and 2010 =
693,463,980
Current liability = Bills payable + Short Term Borrowing + Short Term Deposit and other account + short term liabilities against assets
subjects to finance lease + other liability(Only short term)
After adding all current Liabilities according to given format the Current Liabilities of 2008 = 682,905,461 and 2009 = 725,293,720 and 2010 =
867,626,367
Finally divide current assets with current liabilities answer is current ratio
Graphical Presentation of Current ratio

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