When I joined the bank, I had no practical experience with regard to working of a regular bank.

Then I got an opportunity from the university authorities to join and work with NBP to get experience of the rules and regulations that bank follows. I left the bank with a thirst to learn more. I seek a chance in order to survive in a banking environment.

ACKNOWLEDGEMENT

Praise to Almighty Allah, the Omnipresent, the Omnipotent, Who bestowed upon me the potentially and ability to accomplish this work. No sequence of works can express my sincere gratitude to our respected Professor Fidah Hussain Bukhari without whose valuable guidance, rich experiences, helpful advice, useful suggestions and constructive criticism and comments. I could not have been able to complete this Internship Report. I have honor to express my heart-full gratitude to the executive and staff members of National Bank of Pakistan, Saman Abad Lahore, who kindly gave them acceptance to the topic of my Internship Report along with many useful suggestions which encouraged me to complete my work. Thanks for all those who extend their cooperation for conducting the work of Business Internship

----

National Bank of Pakistan (NBP)

Vision
To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering

Mission
To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our core values.this mission prepared bay ali akbar zaidi khair pur mirs

History:
NBP was established under the National Bank of Pakistan Ordinance 1949 in Pakistan. NBP occupies a unique position in the financial sector of Pakistan. It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch. It also undertakes Government Treasury operations. The National Bank of Pakistan is a Commercial Bank and transacts all types of Banking Business. The National Bank of Pakistan was established on November 29, 1949 as a semi public commercial bank. The Bank has the distinction of acting agent of the State Bank of Pakistan and operates treasuries where the State Bank of Pakistan does not have any office. The Head Office of the Bank is at Karachi. Ever since its establishment in 1949 it has been leading Commercial Bank of the nation, sole agent of the Government of Pakistans batter trade with countries and of State Bank of Pakistan for the Government Treasury. In Pakistan, the bank provides complete bank facilities to the people at over 1436 Branches operating even at the far lug Northern Areas. National Bank of Pakistan is the first bank in the country to introduce and implement supervised Ruler Credit Programmed help small farmer 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 System (PLS) as a major towards Islamization of economy.

NBP is 100% owned by the Government of Pakistan (GoP).

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. The Head Office of the Bank is at Karachi. Ever since its establishment in 1949 it has been leading Commercial Bank of the nation, sole agent of the Government of Pakistans batter trade with countries and of State Bank of Pakistan for the Government Treasury. In Pakistan, the bank provides complete bank facilities to the people at over 1436 Branches operating even at the far lug Northern Areas. National Bank of Pakistan is the first bank in the country to introduce and implement supervised Ruler Credit Programmed help small farmer 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 System (PLS) as a major towards Islamization of economy. 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.

It is now extending the operations of the Bank to all branches to Banking, to commerce, to industry to trustee services as well as to agriculture and to the need of the small or big businessman.

Organogram of Governing Bodies In National Bank Of Pakistan

Board of Directors President Group Chief

Group Credit Management Chief

Group HR Chief

Group Compliance Chief

Group Credit Administration Chief

At Regional Level Regional Credit Management Chief Regional HR Chief Regional Compliance Chief Incharge Credit Administration

Branch Manager

Branch Operation Manager

ORGANIZATIONAL STRUCTURE

PRESIDENT DIRECTORS/ SEVPS

Provincial Chiefs/SEVPs

Regional Chief / EVP Zonal Chief / SVP Vice President Assistant Vice President Officer Grade-I, II, III DEPARTMENT FUNCTIONING UNDER N.B.P
Clerical and non-clerical staff

Departments in NBP: Account Opening Department Deposit Section Bills Remittance Department Clearing Department Cash Department Credit Department Pension Section Issue of inland letter of credit

Cash Department
Cash Department is the most important section in the bank. It performs the following three main functions:

1. Bank payments & receipts

Bank payments means cash payments to those persons who represent cheques and bank receipts includes cash deposits made by account holders.

2. Government receipts & payments

Government receipts means collection of income tax, property tax, sales tax and traffic challans. Government payments include salary payments to Govt employees and Pension payments.

3. Collection of utility bills

It includes collection of all utility bills which includes electricity , gas and water bills. It also includes ptcl bills.

The following books are maintained in the cash department:1 ... ... 2 ... ... Receiving Cashier Books Token Book

3 ... ... 4 ... ... 5 ... ...

Paying Cashier Book Scroll Books Cash Balance Book

Clearing Department
All commercial banks are the members of the bankers clearing house which facilitates the settling of daily balances due between member banks arising from the cheques and cash transactions throughout the country, whether by the general public or individual banks. Clearing is the transfer of funds from one branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving the cash through state banks clearing house. Clearing house is the place where both the debtors and creditors are different commercial banks and they settle their claims. There are two types of clearing: Inward Clearing It means cheques which are drawn on our bank but are presented to the branch of another bank and on our branch but with in the city. These cheques are handed over to NBP agent in clearing house. Inward clearing results into outflow of cash. Outward Clearing It means the cheques of another bank, which are presented on our branch by our customers. Outward clearing results into inflow of cash from the payee bank.

TYPES OF CHEQUES COLLECTED

(1) TRANSFER CHEQUES

Transfer cheques are those cheques which are collected and paid by two different branches of the same bank situated in the same city.

(2) CLEARING CHEQUES

Clearing Cheques are those cheques which are drawn on the branches of some other bank of the same city or of the same area which covers a particular clearing house.

(3) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on the branches of either the same bank or of another bank, but branches are not in the same city or they are not the members of clearing house.

(4) TRANSFER CHEQUES

Transfer cheques are those cheques which are collected and paid by two different branches of the same bank situated in the same city.

(5) CLEARING CHEQUES

Clearing Cheques are those cheques which are drawn on the branches of some other bank of the same city or of the same area which covers a particular clearing house.

(6) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on the branches of either the same bank or of another bank, but branches are not in the same city or they are not the members of clearing house.

Bills Remittance Department

Remittance means sending money from one place to another place. So National Bank Of Pakistan provides number of services to transfer money from one place to another place. These services include Demand draft, Telegraphic transfer and Mail transfer. Bills Remittance Department also works on Payment Orders and Short Credit.

1. Demand Draft
Draft is an order to pay money, drawn by one office of a bank upon another office of the same bank for a some of money payable on demand. Drafts are commonly used to remit money to parties both domestic and foreign. It is the cheapest way to remit money over long distances. Demand draft is just like a cheque which is drawn by one bank branch on another branch of the same bank. The bank has a primary and direct liability to pay drafts.

2. Telegraphic Transfer
Telegraphic transfer (TT) happens or activate when any client or account holder wants urgent payment to its respective party, which is out of city premises. This TT is done through fax and takes very less time.

3. Mail Transfer
Mail transfer is the inter city transfer of money between two branches of a bank, through mail (currier). It is faster mode of transfer money than demand draft.

4. Payment Orders
If the client or account holder wants to make payment within the city, then this done through P.O. It can only be cancelled with the consent of both parties.

1. 2.

For NBP Account Holder For NBP Non-Account Holder

Rs. 50/- (Flat) Rs. 100/- (Flat) Rs. 25/- (Flat) from student for payment of fee favoring educational institution

b. 1. 2.

Issuance of duplicate Pay order For NBP Account Holder For NBP Non-Account Holder

Rs. 100/- (Flat) Rs. 150/- (Flat)

5. Short Credit
Short Credit is also known as Inter- City transfer. Bank receive cheques of other banks out side the city. Bank transfer these cheques through inter city transfer.

Deposit Section
Deposits are referred to as the LIFE_BLOOD of the bank. The fundamental function of a commercial bank is the acceptance of deposits. Banks accepts deposits from those who have surplus money in their hands but they are unable to make use of it. When a bank receives a deposit from customer, the relationship of debtor

and creditor established whereby a customer becomes the creditor and the bank becomes debtor. The amount owned by the bank must be payable to the depositor on demand or after some time. Deposit Section in a bank deals with the acceptance of deposits and payment of cheques.

LEDGERS OF DEPOSIT DEPARTMENT

The following types of ledgers are concerned with deposit department: 1) Saving Ledgers 2) Current Ledgers 3) Profit and Loss Sharing Ledgers 4) Fixed Deposit Register 5) Cash Book 6) Daily Profit and Loss Summary Book 7) Voucher Register

DIFFERENT TYPES OF ACCOUNTS OPERATED BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits. 1. Current deposits 2. PLS Saving deposits

3. Fixed deposits account (Time Deposit) 4. Foreign Currency Account

1. CURRENT DEPOSIT For current deposits NBP open the account in the name of individual proprietary firms, partnership firm, private limited companies clubs, association societies and other institutions. The account can be operated by single or two more persons jointly as the instructions may be given at the time of opening the account. If the person who wants to open the account is not in position to sign or signature is not firm or shaky the bank requires is photographs and he has to come in the bank at the time of withdrawals of his deposits. The initial amount of deposits with which he can open the account usual not be less then Rs.1000/But this restriction is not imposed to the accounts of charitable institutions.

2. PLS SAVING ACCOUNTS

The salient features or profit and loss sharing saving accounts to be opened in NBP as under.

1.

These accounts can be opened by individuals in their own single are joint name. The PLS saving accounts can also be opened for provident fund or other benevolent funds of companies, firms, organizations of welfare and educational institutions.

2.

PLS saving account can be opened with an minimum amount of Rs. 500/- only

3.

Money can be with drawn form PLS saving account only through cheque.

4.

To share in the profit a minimum balance of Rs.500/- must be maintained a account. The minimum balanced on sixth and last of month will qualify for the profits.

5.

The profit will be calculated on the basis of monthly minimum balance for the period of six months i.e. from January to June and July to December

6.

The head office of NBP determines the profits or loss on PLS saving deposits and advice its branches the rate and time of distribution of these profits concerned PLS saving account.

7.

They shall be no restrictions on maintaining the maximum balance in PLS saving account.

8.

On the fist of Ramzan every year the Zakat 2.5% will be recovered from the deposits on the balance of that day. But if depositors give declaration of Zakat or he is non-

mulsim no Zakat will be recovered from him in the same day Zakat is not recovered from account in which the balance are below upto prescribed limit as declared by the administrator of Zakat Pakistan Act system of accepting deposits has been stated in NBP since 01-01-1981.

3. PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSIT A/C In the case of fixed deposit account deposit is made for a fixed period and a money deposited can be with

drawn before the expiry of period fixed or before giving an advance notice to the Bank. Fixed deposit caries a higher rate of interest than the other type of bank account and the rate of interest rises with the length of the period and the amount of deposit. One opening a fixed deposit account the bank grants to the depositor a fix deposit (FDR) which is not transferable to any other person. When the depositor with drawn the receipt must be handed back to the bank The salient features of profit and loss sharing term deposit excepted by NBP are given as under.The PLS term deposit are accepted from individual in their own single or joint names, companies firms and other organization.

The PLS term deposit receipt are issued for any amount. There is minimum or maximum limit or deposits in a single term deposit account. The term deposit can be made by tendering cash only. Under term deposit scheme the depositors not cease to earn the profit immediately, after the respective maturity date, but they have been affording a liberal facility. In case the depositors said to with draw their terms deposits on maturity their funds will remain temporarily in used and on profit earned a responsible share would occur to such over due PLS terms deposits at the rates declared on PLS sharing account. The head office of the bank determine the profit or loss on PLS terms deposit at by any one intervals i.e. the end of June and December each year and payment of profit to or deduction of loss if any from the PLS terms deposit is to be made the deposits for longer period will earn a little more profit then those of shorter period deposits. The total profit upto Rs.950/- is exempted from income tax In the case of encashment before maturity but after completion of

months profit will be paid for the entire period for which the deposit remained with bank at the rates payable for the respective period to the PLS saving account after deduction of the Zakat if any.

In PLS term deposit expired and the depositors request with in one month after the expiring date, for investment. The PLS terms deposit will be reinvested for the desire period from the date immediately following expiring date. Zakat or the face value PLS term deposit will be recovered as many times as the valuation dates (i.e Ist Ramzan) falls between the date of issue and the date of expiry of the deposit.

FOREIGN CURRENCY ACCOU

NBP has also introduced foreign currency accounts for Pakistan and foreign Nation in Pakistan and abroad. This scheme assures its customers on better profit and superior service. It offers Pakistani or foreign National to operate a foreign currency A/C with any one of their authorized branches spread all over the country. Deposits of this accounts will be acceptable in all convertible currency but account will be maintained on the customers choice in US Dollar, pounds German Mark or Japanese Yen. Deposits may be made in the forms of remittances in foreign currencies.

FOREIGN EXCHANGE DEPARTMENT

1).

Imports

We sell our foreign exchange to the other country which is called such as we purchase the foreign goods from the others. Import is done through letter of credit (L/C) by the importer. Letter of Credit is an undertaking given by the importer bank to the exporters bank.

2).

Export

Export is to sell our goods to the other country and earn foreign exchange. The bank provide facilities of exporting the commodities to the manufactures of the goods of the country.
3).

Foreign Remittance

The bank provides the foreign remittance facilities to the student studying aboard. Bank also provides foreign exchange in the shape of travelers cheques to the intending visitors.
The NBP has over 1400 branches at home and abroad of these more than 100 branches are authorized and fully equipped to deal with all kinds of foreign currency transactions. NBP has worldwide network of branches and it has associated in Arabia bank, All Jazria (26 branches) and national exchange company in UAE to facilitate the customers in Pakistan, Saudi Arabia and UAE.

GENERAL

BANKING

Demand Draft

Draft is an order to pay money, drawn by one office of a bank upon another office of the same bank for a some of money payable on demand. Drafts are commonly used to remit money to parties both domestic and foreign. It is the cheapest way to remit money over long distances. Demand draft is just like a cheque which is drawn by one bank branch on another branch of the same bank. The bank has a primary and direct liability to pay drafts.

PROCEDURE OF ISSUANCE OF DEMAND DRAFT

Bank receive a written request from a customer to issue a demand draft on banks standard form. Amount of DD & exchange has to be deposited by the customer either in form of cash or cheque. Amount of exchange is as per banks schedule of charges. Minimum amount is Rs. 50/- and 10 paisa per thousand upto Rs.100000/- AND Minimum Rs.100/- & 5 paisa per thousand on amount of DD more than Rs.100000/Now we issue DD with due care, all details are clearly mentioned on it. DD # mentioned on application form. After signed by officer it handed over to customer after taking his signatures on back of the application form. After issuance of DD we make DD Advice(F-120). Recording is made two registers one is DD issue register and other is DD advice issue register covering all details like date, applicant name, person in whom favor DD is drawn and addressed branch of NBP. Now we fill fanfold (F-15) Both debit & credit voucher signed by officer and send debit voucher and DD advice to respected branch through NIFT. Credit voucher and application form is remains with the branch. We pass entry as Cash Account (amount of DD + exchange) NBP General Account Exchange Account

Telegraphic Transfer

Telegraphic transfer (TT) happens or activate when any client or account holder wants urgent payment to its respective party, which is out of city premises. This TT is done through fax and takes very less time.

PROCEDURE OF ISSUANCE OF MAIL TRANSFER

Bank receive a written request from a customer to issue a Mail Transfer on banks standard form. Amount of MT & exchange has to be deposited by the customer either in form of cash or cheque. Bank receive Rs. 75/- over and above the amount of exchange in DD. Now we issue MT with due care, all details are clearly mentioned on it. MT # mentioned on application form. When MT is issued the issuing bank send debit voucher(F-15) and original MT document to NBP branch in whom favor MT is drawn. After issuance of MT we record it into DD,MT,TT issue register. On receipt of MT from any branch officer check the authorized signature of the officer who issue in NBP secret employee code book. This helps him to verify the authenticity of MT.

Mail Transfer

Mail transfer is the inter_city transfer of money between two branches of a bank, through mail (currier). It is faster mode of transfer money than demand draft.

PROCEDURE OF ISSUANCE OF PAYMENT ORDER

Bank receive a written request from a customer to issue a payment order on banks standard form. Amount of PO & exchange has to be deposited by the customer in form of cash. Amount of exchange is as per banks schedule of charges. After Submission of cash we issue a Payment Order after filling all particulars of PO. Payment order number must be written on the application form for recording purposes. Payment order is handed over to the customer after taking signature of a customer at the back of the part of PO in payment order book.

SECURITIES IN

NBP

Securities

(1)

BANKERS LIEN
(Moveable property possessed to the lender cannot be sold in

case of default) Lien is the bankers right to hold the property until the claim on the property is paid. The bankers look at their lien as a protection against loss on loan or overdraft or any other credit facility. In ordinary lien, the borrower remains the owner if the property, but the actual or constructive possession remains with the creditors, though he has no right to sell it.

(2)

GUARANTEES
When an application for an advance can offer any tangible

security, the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant.

(3)

MORTGAGE
(Immoveable property possessed to the lender can be sold in

case of default) A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, and existing of future debt, or the performance of an engagement, which may rise to a particular liability. The person in whose interest the property is transfer is called mortgagee.

(4)

HYPOTHICATION
When property in the shape of goods is charged as security

for a loan from the bank, the ownership and possession is with the borrower, the goods are said to be hypothicated. The essence of hypothecation is that neither the property in goods nor the possession of them passes to the lender, but the security is granted by means of letter of hypothecation which usually provides for a bankers charge on the hypothecated goods.

(5)

PLEDGE

In a pledge, the ownership remains with pledger (borrower), but the pledgee has the possession of property until the advance is repaid in full. While in case of defaulter, the pledge has the right of sale after giving due notice.

PRODUCTS

In

National Bank Of Pakistan

NBP SERVICES
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :

To effectively manage NBPs exposure to foreign and domestic correspondence Manage the monetary aspect of NBPs relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the banks profitability Generation of incremental trade-finance business and revenues

NBP offers
The lowest rates on exports and other international banking products Access to different local commercial banks in international banking

Monthly Income Scheme

Minimum deposit of Rs. 50,000 and a maximum deposit of Rs. 5,000,000 for 5 years Free Demand Draft, Pay Order and NBP Online Aasan Banking*

 Free Cheque Book / NBP Cash Card (ATM + Debit)

It is PLS Saving Account Minimum saving balance of Rs. 20001 & maximum balance of Rs.300000. free NBP cash card(ATM+debit) convenience of NBP Online Asan Banking two debit withdrawls allow in a month. Profit calculated monthly and paid on half yearly basis.

n eNBP STUDENT LOAN SCHEME

Student Loan eNBP STUDENT LOAN SCHEME Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002 budget speech, a STUDENTS LOAN SCHEME (SLS) for Education was launched by the Government of Pakistan in collaboration with major commercial banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan. The Scheme is being administered by a high powered committee comprising Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks and Deputy Secretary, Ministry of Finance, Government of Pakistan. ELIGIBILITY Under the scheme the students are eligible to apply for loans provided: 1. He/she has obtained admission on merit in the approved universities/ colleges of the public sector mentioned hereunder. 2. he/she falls at the time of admission within the age bracket of:For Graduation For Post-Graduation For Ph.D Not exceeding 20 Years Not exceeding 30 Years Not exceeding 35 Years

3. He/she has secured 70% marks in the last public examination 4. he/she has undertaken the study of the subject given below 5. he/she is unable to pursue studies due to financial constraints. TYPES OF LOAN The loan facility will be available for entire duration of the study for:Schedule Fee Paid directly to the Boarding expenses excluding meal charges Procurement of textbooks--- Disbursed directly to the student

REPAYMENT The maximum period of repayment of loan is 10-Years from the date of disbursement of first installment .The borrower shall repay the loan in

monthly installment after six months from the date of first employment or one year from the date of completion of studies, which ever is earlier. Under the Scheme, loans are available in the following subjects. i) Engineering ii) Electronics iii) Oil Gas & Petro-Chemical Technology iv) Agriculture i) Medicine ii) Physics iii) Chemistry iv) Biology, v) Molecular Biology & Genetics ix) Mathematics x) Other Natural Sciences xi) DAWA and Islamic Jurisprudence xii) Computer Science/Information System and Technology including hardware. xiii) Economics, Statistics and Econometrics Sciences xiv) Business Management xv) Commerce OTHER INFORMATION

Applicatio form are available from the designated branches The students desirous of availing loan under the Scheme may apply on prescribed form for financial assistance subject to he or she has got admission on merit through normal procedure in the Universities/ Colleges afore-mentioned. Applicants are required to submit/send their applications on the prescribed form, duly completed in all respect, to the designated branches indicated against each University/College by the given date. Incomplete application is not be entertained. Students who have availed this facility in the last / previous year(s) need not to apply.

Schem

eNBP SAIBAN

Product Items Home Finance Home Renovation Home Construction Purchase of Land + Construction Balance Transfer Facility (BTF)

Eligibility

Must be Pakistani Resident (National) Aged between 21 and 65 years at the time of application/disbursement of loan. Salaried Person, Self-employed professionals and businessmen. Property located in NBP approved localities.

Service duration: Two years for salaried class Three years for selfemployed/business class. Required Documents With Applications Form Two attested passport size photographs Two attested copies of your National Identity Card Cheque for the processing charges Property Documents Any title document available (other documents may be required)

1) FOR SALARIED PERSONS, WHOSE SALARIES ARE DISBURSED THROUGH NBP BRANCH Employer Undertaking for remittance of salary at relevant NBP branch for credit to customers account (to be provided at a later stage, format available at relevant branch) Employee ID Copy attested by NBP Branch (where applicable) Attested copies of last three (3) months salary slips Attested copies of last three (3) months bank statements

2) FOR SALARIED PERSONS OF MNCs AND NBP APPROVED COMPANIES Employer Undertaking duly attested by relevant NBP Branch, where applicable (to be provided at a later stage, format available at relevant branch) Attested copies of last three (3) months Salary Slips Letter of Verification of Employment on Company Letterhead mentioning the date of joining Attested copies of last three (3) months bank statements 3) FOR OTHER SALARIED PERSONS Letter of Verification of Employment on Company Letterhead mentioning the date of joining Attested copies of last three (3) months Salary Slips Attested copies of last twelve (12) months bank statements Attested copies of last three (3) months paid bills for electricity and telephone OR copies of last (12) twelve months credit card bills (which ever is available)

4) FOR BUSINESS PERSONS Bank Certificate stating applicant maintaining Business Account and the date of account opening Attested copy of latest Form 29 in case of Private or Public Limited Company Attested copy of Partnership Deed (where applicable)

 Attested copy of current professional association membership/practicing certificate. Adequate proof of professional engagement like bank certificates Attested copy of Partnership Deed (where applicable)

ACCOUNTING

PROCEDURES TO BE FOLLOWED BY NBP

SUSPENSE/SUNDRY DEPOSITS ACCOUNTS AND OTHER SUNDRY LIABILITY ACCOUNT

Under bylaw 6(b) of the banks byelaws not more than two suspense accounts(I-e accounts in which items, which cannot be passed at once into their proper accounts are in the meantime debited or credited) shall be kept at any controlling office or branch. The only accounts of this nature allowed are,therefore,suspense account for debit item held in suspense ,and sundry deposits accounts for credit items. the former being a general ledger account and the latter a current account

. The sundry deposit account is subdivided into two categories namel;y,:Other Sundry Liability Account: and :Sundry Deposit Account:. In other words Liability account only items other than deposits would be entered. The balance outstanding in these two accounts at the close of each week shall be reported in the scheduled telegram against the existing codes I-e Sundry deposit account N109B and other sundry liabilities account N113b.A subsidiary register B-12 on the pattern of the sundry deposits account register shall be maintained as other sundry liability register. Entries are however, not to be made in these accounts in regular course of business, but only in cases when due to some reasons ,the amount could not immediately be credited to their proper accounts. Such entries would be of temporary nature. Amounts temporarily credited to sundry deposits accounts/other sundry liability account are to be reversed at the earliest moment so that outstanding is cleared undue delay.

Adjusting accounts
Expenses payable but not paid; The entries passed under different heads of charges are on reversal, individually carried ouyt in the general ledger are subsequently when the relative bills on receipts are sanctioned for payment by competent authority, shall be paid by debit to other sundry liability account .Whenever it is felt that bills under a particular head for which provision has been made at the end of the year have been paid and the amount provided for was in excess of the requirement ,the balance should be credited to the charges account. All vouchers on suspense accou=nts and all debits to sundry deposits account must be signed by the operations manager singly up to the amount of Rs 5000/- for cash and Rs 10000/- for transfer ,and jointly with his second officers for amounts exceeding theses limits.Other supervising officials at the managers discretion may pass credit entries in sundry deposit account.The recipients of the money must properly receipt all debit vouchers for cash payments and on transfer debits particulars of disposal must be recorded. Full particulars of all orignal items will be entered in the suspense account or sundry deposits account register B-11 or B-12 as the case may be.When entries in these accounts are reversed ,the dates of the reversing entries must be entered against the orignal items and initialed by the manager .Full

particulars of reversing entries vmust be written on the vouchrs but need not be entered in the registers, the words entry reversed and the date of the orignal items being sufficient. All branches where there are only a few entries in the sundry deposits account, a sundry deposit account register may be dispensed with provided all reversing entries are passed by the manager in the ledger account,in which full particulars of original items must be written,the dates of all contra items entered and each individual entry initialed.When sundry deposits account register is maintained only the daily debit and credit total be posted in the ledger account. Temporary running finance must not be debited to yhe suspense account .Refer to the temporary running finance instructions. Suspense account for meeting entertainment expenses which are paid strictly reimbursed basis advance payment in respect of rent of branch premises as well as rent ceiling provided to the banks; officers (should be debited to the general ledger head prepaid rent account),advance deposits made to the post offices,telegraph,electric supply companies gas supply companiesetc,(should be debited to general ledgere head advance deposit accounts) and expenses of law charges,stamp fees and expenditure incurred in respect of borrowers cases in courts (should be debited to respective subheads of charges accounts) Sundry deposits accopunts should be used only for items ,and the entries therein must be kept to a minimum .Bills proceeds received late in the day should ordinarily be credited to proper accounts even if it is too late to dispatch the relative advice the same day and the amounts for which payment orders have to be issued should be credited direct to the payment orders account. On the last working day of each month except December branches will forward a detailed staement on form F-47 of all items outstanding in suspense account at the beginning of the month and all entries ,debit and credit ,passed during the month to their concerned office. A detailed statement on form F-48 of all items outstanding for over 6 months in sme deposits account will be forwarded to the controlling office at the end of each month except December.Aggregates of the remaining items should however be added to the total of the detailed items so that the ultimate total agrees with the balance.Annually on the 29th june or the previous working day ,if that day is a holiday ,amounts outstanding in sundry deposits account for more than three years will be transferred to an office account Managers must see that all outstanding in suspense account and sundry deposits accounts clreaed as soon as possible,and will therefore ,personally check the outstanding amounts atleast once in a week. Entries made in suspense account on account of tax at source advanced paid receivable advance expenses on new branches ,advance rent payment ,legal expenses,mark up/service charges recovered,Qard- e hassana for marrige may be classified as other assets .

HUMAN RESOURCR AT NATIONAL BANK OF PAKISTAN

POLICIES

HUMAN RESOUCE POLICIES AT NATIONAL BANK OF PAKISTAN 1RECRUITMENT POLICIES AND PROCEDURES; In NBP recruitment is done purly on merit.An organizational wide culture of meritocracy is found in NBP.Recruitment is done centrally or locally both and it hire employees from two sources

o o

Internal hiring External hiring

Internal hiring is the most economical way of hiring employees it uses minimum resources and efforts to get required workforce within the organization.Data is obtained from the database of NBP maintained at head office in Karachi. While external hiring is resorted in such a situation when its difficult to find out required workforce from within the organization ,it involves a plenty of time and considerable amount of resources.NBP follows both the ways depending on the circumstances. .As main Human Resource Department is in Karachi so normally hiring is done from Karachi HRD.A database has been maintained over there in which a pool has been created out of which short listed candidates are supposed to appear in the written test(arranged at different cities at convenient and easily accessible places of main cities I-e Karachi,Islamaabad,Lahore,Queeta) and after that successful candidates are required to go through interviews (Panel interviews). Selected candidates are then appointed to the posts and are assigned their respective duties

EMPLOYEE ORIENTING
It is a procedure for providing new employees with basic background information about the organization. So all new employees are provided information about the working environment, working hours and vacations.It may be an informal introduction or a lengthy formal courses.NBP always exibits a warm and cooperative attitude towards new employees and welcomes them.

SOME OTHER WAYS OF RECRUITMENT ADOPTED BY NBP

.NBP also follows many other ways of recruitment they are not always alternative to one another rather most of the time these are complementary to each other .Here are some of them ;

i) College recruitment ii) On site visits iii) Referrals and walk ins iv) Recruitment via internet

INTERNSHIPS
NBP also offers internships to the students and fresh graduates in all its branches.A complete procedure is observed to allow people to intern in NBP.A formal request is made by the internee which is approved by head office .A secrecy bond is signed by the internee in which internee undertakes that he/she will not misuse any information obtained from the records ,he wll obey bank rules and regulations ,will not divulge and information about the bank or its clients,staff members,will not obtain any benefit from the information which may come within his/her knowledge during the course of training in NBP.The entire transaction and information will be kept by as strictly confidential.

PAY PACKAGE,BONUSES AND REWARDING CRITERIA

NBP is an Equal Opportunity Employer meaning thereby that it offers its employees absolutely competitive pay structure including other fringe benefits like house loan,car loan,marriage loan and bouses as well.NBP announces two bonuses each year one at the half year closing I-e 30 th june and second one at the end of calender year I-e 31st December.Besides these bonuses NBP also disburse two EID BONUS at both eids and including all theses sometimes during a year SURPRISE BONUS is also awarded to its employees ,hence NBP motivates and appreciate positive contribution made by its employees ,NBP apprise and evaluate output of its employees and pay them reward and in case of any undesirable outcome it punishes its employees as well. This practice helps to maintain the morale of the employees high and to inculcate a feeling of check in their minds as they know that

their work is going to be rewarded or punished so they make their efforts accordingly.

TRAINING AND DEVELOPMENT OF THE EMPLOYEES;

A continuous process of training and development of its employees is the tradition of NBP. Its employees have to undergo a training process.This traning is of both types; i. ii. On the job training Off the job training

On the job training means training a person while he is working on it.Different techniques are used for thisw purpose like; 1. 2. 3. 4. Job rotation Job enlargement Job enrichment Action learning

Job rotation means NBP moves a trainee from department to department to broaden his/her experience and identify strong and weak points.While job enlargement and job enrichment techniques are used by NBP by giving extra tasks to be performed by the employee and hence learning through doing different tasks.On the other hand NBP uses action learning is used to train employees by allowing them to work full time analyzing and solving problems in other departments. Besides this training other refresher courses are also arranged to impart latest knowledge and modern practices to its employees in order to make them up to the date.

SWOT ANALYSIS

SWOT ANALYSIS
An analysis indicating towards organization strengths, weaknesses, opportunities and threats is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the

strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and craving ways to successful tackle with the threats and ultimately converting them in the strengths for the organization During eight weeks of my stay, I have come across the following SWOT analysis of the bank STRENGTHS Strengths are those activities the organization does well or the unique resources that it has. The strengths of SPCBL are given as follows: The Keeping Of A Good And Modest Environment During Business Hours. The bank has a good team of customer relation managers and customer relation officers to help the people. Systematic working operations. The credit administration department enjoys a staff of very good business executives who attract and analyze people in a very good manner. A good dressing of employees and their attitude towards the people A Good System Of Communication Flow Is There The Keeping Of A Good And Modest Environment During Business Hours. The Commitment Of Employees Towards Secrecy.

WEAKNESSES The internal issues include certain weaknesses which are discussed below: There Is Lack Of Proper Advertising. Higher Charges of Some Services As Compared To Some Other Banks. All Branches are not On Line No ATM facility available Employees turnover is higher. All Branches are not dealing in foreign exchange.

OPPURTUNITIES

 Stronger and deeper relationships with existing and potential customers. Cross selling of other Union Bank Products. Committed employees due to payment of higher salaries. Government patronage A good job recruitment policy of hiring business graduates.

THREATS Pakistan Is A Developing Country And Our Debt-Burdened Economy Is A Major Threat For The Banking Business. High probability of competitive reaction Foreign banks may increase marketing support and aggressive sales drive. Launch of similar products by large nationalizes banks with extensive distribution network. Political Condition The Employee Turnover Can Create A Serious Problem For The Bank.

Problems faced by the Bank

I have done my internship in National Bank Of Pakistan, During the course of my internship I observed some deficiencies in the banking operations. Some dilemmas faces by bank is as follows: NBP still following the old methods and techniques which are not up to the mark. Most of the work done manually which is not reliable in future. Computer facility is not available. All branches of national bank of Pakistan are not online, which badly affect the operations of bank branches.

There is lot of burden of work on bank staff. One person handles many things, which affect the efficiency of that person. Overall timings of entrance into the office for the employees are very strict but there is no time for them to leave the office and no over time is paid to them which may be a significant reason of dissatisfaction for their jobs.

During my internship I realize that bank needs young and experienced new staff to meet technology and global challenges. Many of National bank customers are illiterate and retired servants so bank officers face much difficulty in handling them. No proper customer services department is available in the branch. There is no information counter in the bank, so customer also face difficulty regarding financial matters. Deficiency in adopting new standards of marketing to strive in this competitive era. Job rotation is very important for sound environment and communication purposes but there is lack of job rotation in the bank. I also observed some social problems with women workers in the bank. Internship programme of National Bank Of Pakistan is not satisfactory. The behavior of staff towards internee is not well. They do not tell enough to the internees about typical banking operations. Staff working in the bank is not properly trained according to the modern banking requirements. they are usually old age and working from longer period of time. There is no employees. satisfactory training system of existing

Recruitment policies of the bank is very tough which does not motivate young and fresh graduates to serve bank. The research cell should be formulated and it should continuously try to gather information about the present actions of its competitors and the expected future actions. So in this way more effective strategies can be formulated.

Bank is a service industry; people normally prefer those banks where they feel comfort and get best of the services, so such strategies should be adopted by which the services enhanced and attract more customers. NBP should give proper attention on staff training and should provide the facility not only in Pakistan but also in abroad. Every year some of the employees should be sent for training to other countries. Different training programs should be arranged for On the Job employees so that they can work according to the global requirements of modern banking. All the branches of NBP should be Online so that there is no delay of services to the customers. Bank should take reasonable steps to improve consumer banking. The world has become now a global village. So NBP must chalk out its global customers and their needs. Bank policy should be designed to satisfy not only local customers but also helpful for outsiders. Bank policies All departments in the bank should be computerized so that officers can save time and make their jobs easier. Bank should recruit new persons for better management. They must be trained and use to with new technology needs. Bank should appreciate management. female workers at high level

Managers and other top level employees should adopt proper strategy to minimize communication gap among staff members. Bank should formulate an attractive internship program to motivate new generation. In order to increase the performance of employees management should evaluate employees performance and give extra incentives to them

FINANCIAL HIGHLIGHTS OF NBP SAMANABAD BRANCK

Current Account Balance PLS Saving Account 24711639.74 263572098.22

Interest Account Balance Demand Finance Account Debt Total

7846915.09 15377268 113019527.51

Advance Salary Debit Small Finance Account Debit Payment Order Account DD Account Saving Rate MIS (monthly income scheme) Premium savor Total Branch Deposit

3704034.62 20946400.89 987072 62987.50 1.2%semi annually 3.3% 7.2% 300M

Work Done By Me
In NBP I worked in following departments; Account Opening Credit/Advances Pension

Accounts

My primary focus in 6 weeks duration was on Credit/Advances department. I spend most of my internship period in that department. I worked for President Rozgar Scheme and used to deal with customers who come there to take advantage from this scheme. Different people used to come there who were unemployed and want to start their new and personal business. From this department I learn that a banker must; Know how to deal with customers Know how to convince & satisfy them Have knowledge about the product Be very confident before his/her client

Account Opening Department

The opening of an account is the establishment of the banker customer relationship. By opening an account at a bank a person becomes a customer of the bank.

Account Opening at NBP

As the opening of an account is of crucial importance for a bank, great care should be taken in this matter. NBP has specified the rules and procedure for opening on account which are strictly abide by all its branches.

Responsibilities of Account Opening Department

Account opening Documentation at the time of opening of an account Issue cheque book Closure of an account

Account opening
Whenever a new customer enters in the bank with the intention to open an account, the banker is required to determine his/her category according to his status and needs. NBP has following categories of accounts: Individual Account Joint Account Minor Account Sole proprietor Account Partnership Account Company Accounts Accounts of the Welfare/ Societies/Clubs/ NGOs

Documentation:
Each one of these account has different requirements with regard to the documentation. But the documents which are common in all these categories are: Computerized National Identity Card (CNIC) of the applicant

Introducer - the person should be the account holder of the NBP (same or any branch) from last six month and maintaining his/ her account regularly.

Individual Account
This category is further bifurcated into following sub-categories: Business Account Student Account Salaried Person Household Women

All these persons are required to fill the same account opening form. The only difference comes in case of the supporting documents. In case of the business account the great care should be taken in inquiring the source of the income. The business proof of the customer is required in shape of the visiting card or the letter head. In case of the student account the college card and the bonafide certificate from the institution is demanded by the bank. For salaried person employment proof is asked at the time of opening an account. The salaried person is required to provide Appointment Letter so that the banker can know about the joining date, salary and designation of the potential customer. While opening the account of household women the routine documentation is done. But the important thing to inquire and consider is that what will be the source of the transaction in this particular account. The banker should be prudent enough to see and point out any unusual volume or number of transaction in this account.

Joint Account
Any number of persons can open a joint account. There is no limit on the maximum number of the persons in a joint account. Every person

is required to fulfill the same requirement as mentioned under the head of the individual account in the personal capacity.

Sole Proprietor Account

NTN No. which should clearly mention the business name, client name and address of the business place Request for the account opening on the Letter head of the business Business stamp

Partnership Account
NIC of all partners Partnership deed attested by the Notary Public NTN certificate Form- C (if partnership is registered) Rubber stamp according to following format.

Business Name Partner

Company Accounts
NICs of all the directors Rubber stamp according to their designation List of director attested by chief executive Resolution of the board of director to open bank account (on bank format) Form 29 duly attested by SECP: This certificate contains the details of directors and officers including Chief Executive, Managing Agent, Secretary, Chief Accountant and Auditors and Legal Advisor.

Article of Association(AOA) / Memorandum of Association(MOA) NTN Certificate of incorporation All the above documents should be sealed and signed (with stamp) by company secretary.

Minor Account
CNIC of Guardian Business/ Employment Proof of Guardian Bay Form/ Birth Certificate duly original seen by Attorney holder Date of majority of the minor should be mentioned on AOF & SSC Only personal information of guardian on AOF. No information of minor on AOF. No signature of minor on account opening documents Title of account should Minor Name (M)/ Guardian Name (G) (M=Minor, G= Guardian) Stamp affixed on Account opening form and signature specimen card. GUARDIAN WILL OPERATE THE ACCOUNT EVEN IF MINOR ATTAINS MAJORITY. Guardian can operate the account after majority of the minor as mentioned in the stamp.

Accounts of the Welfare/ Societies/Clubs/ NGOs

Resolution (Name & signature of authorized signatories along with CNIC numbers and operating instructions) CNIC By- laws

Registration certificate List of governing bodies Legal opinion Approval form Area Manager and System Operations.

Types

of

Accounts

NBP is offering different types of accounts which are designed considering the needs of different types of customer. The different entities discussed above can open any of the following account:

CURRENT ACCOUNT
It is the most demanded account in any bank. Individual partners, companies associations, clubs, societies, and NGOs are eligible to open current account. Here are some features of the current account offered at NBP Non interest bearing checking account. Minimum account opening requirement of Rs.10, 000 only. Free debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan. This account can be opened in foreign currencies also. No restriction on number of withdrawals and on number of deposits Minimum average balance Rs.10,000/Rs.100 will be deducted in case of balance maintained below the minimum limit of deposit. No Zakat deduction.

PLS SAVINGS ACCOUNT

This account helps the customer to earn a handsome amount on their saving. Any one or more individuals or partners can open a PLS saving account with the Bank. Profit & Loss Sharing Saving Bank Account. Minimum account opening requirement of Rs.5, 000 only. No restriction on number of withdrawals and number of deposits. Profit on PLS saving account is calculated on minimum monthly balance basis. Profit on saving accounts is credited to the customer account on half-yearly basis. Profit rates are subject to charge in response to change in the return earned by the Bank on deployment of funds. Free debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides access to funds 24 hours a day. The charges for maintaining the minimum balance in the account are Rs.50 per month. Saving account can be opened in other currencies also i.e. in Euro, Pound Sterling, U.S Dollar etc. Zakat is deductible on balance in this account otherwise an affidavit is provided by the customer.

Procedure of Account Opening

A. Account Opening Form

The first step in the procedure of opening an account is the filling of Account Opening form. At NBP the account opening form is titled as the Relationship Contract. This relationship contract becomes the binding for both the banker and customer. It contains all the requisite information needed to open and operate an account according to the specified rules and regulations.

Contents of Account Opening form

The following details are required to furnish the Relationship Contract. 1. TITLE OF ACCOUNT: It is the name through which the customer is intended to operate an account. 2. ACCOUNT NUMBER: It is the serial number given to each account at the time of opening an account. This is the number through which an account is accessed whenever it is needed. This serial number starts from a Code, which is different for different types of accounts. These codes help the banker to identify type of an account an account at first sight. The following is the list of codes for different types of account used at NBP. Current Account Saving Account Royal Profit Account BBA Account USD Account Euro Account

 Pound Sterling Account 3. PERSONAL INFORMATION After giving the title to the account, the personal information of the customer is written down in the Account Opening form, like Name, Fathers name, Mothers name, Employment information (Address of employer, Name of employer, job title) in case of a salaried person, NIC #, Nationality, Residential Address, Phone number etc. In case of joint account the personal information of each accountholder is taken. 4. NEXT OF KIN Mention Name & address of person/next of kin to be contacted for ascertaining consumers whereabouts after the expiry of three years from the date of last operation in his account, to inform him/her of the existence of his account when customer were not available at the given date. 5. ADDRESS FOR THE CORRESPPONDECE

Address of the customer is needed to contact the customer.

6. CORPORATE ACCOUNT In case of company account the additional information regarding the address of the Head office and Date and Place of the incorporation is required. 7. TYPE OF ENTITY that either the applicant falls under the category of individual, sole proprietor or company etc. 1. NATURE OF THE ACCOUNT

2.

for example current account. 9. CURRENCY OF ACCOUNT Customer has to mention the currency, in which he is going to operate. 10. DETAILS OF THE TERM, NOTICE & CALL DEPOSIT It includes No. of receipt, Amount, Period of the deposit. 11. ZKAT DEDUCTION INSTRUCTION 12. INSTRUCTION FOR OPERATION OF ACCOUNT Under this head the applicant specify that how he/ she will operate the account. If applicant is individual then he will select the option of Single but in case of a joint account the customers have to make choice among the options of the Joint and Either or Survivor which means that any of the joint account holder can operate the account. The option of Any one of meant for the Partnership Account.

13. INTRODUCERS DETAIL The introducers name, account no., introducers signature and the signature and stamp of the verifying officer are also required to fill in the account opening form. If the introducer is the account holder in any other branch of the NBP then the account opening officer is bound to obtain the verification from that branch. Introducer should be operating any account from last six month on regular basis that is the account should not be a dormant account. 14. DECLARATION

In the end the applicant(s) agree with the rules and regulations governing the account operating activities by signing the Relationship Contracts. In case of sole proprietor or company account the stamp of the business should be affixed. 15. TERMS & CONDITIONS GOVERNING THE ACCOUNT The account opening form of every bank has the terms and condition governing the account as its complementary part so that the customer will be aware of all these terms at the time of entering this contract. These terms and conditions should be read and signed by the applicant(s). B. Acceptance and Verification of Documents: After filling the Relationship contract the bank officer asks the required documents from the customer as mentioned above in case of each entity. The necessary verification is done.

1.

VERIFICATION OF THE CNIC According to the regulation of the SBP now the banker is responsible to verify the CNIC from NADRA. For this purpose the customer signs an authority letter by which he/ she gives him the authority to verify the CNIC through the on-line CNIC verification service of NADRA.

2.

SIGNATURE DIFFERNET FROM CNIC If the customer wishes to use a signature to operate his account which is different from the one on his national identity card, then he will give an Undertaking under the witness of the Introducer, that he will be responsible for this change of signature.

3.

SIGNATURE SPECIMEN CARD

An important and foremost thing to be signed by a customer is the Signature Specimen Card (SSC). Afterward this card is used to match the signature of the customer every time he or she

deals with the bank. The original card is sent to the head office after scanning it to the system.

4.

ACCOUNT OF THE ILLETERATE PERSON In case of the account of an illiterate person the only photo account can be opened. In this account the customer has to come personally to the bank every time he/ she will deposit to or withdraw from his/ her accounts. So, some additional documents are required to obtain from such applicant at the time of opening a photo account like two photographs of applicant(s), one is put on the account opening form and the other one is out on the signature card. Also a declaration is signed by the customer in order to open a photo account, on which the thumb impression are taken of the customer. This is done under the witness of the introducer.

5.

APPLICATION

FOR

THE

ON-LINE

ARRANGEMENT

FOR

CLEARING/TRANSFER/CASH TRANSACTION If the customer wants to have the account to be on-line, so that he can avail the facility of the on-line banking, then he will sign the application for the use of this facility at time of opening an account or at any time later on.

6.

KNOW YOUR CUSTOMER (KYC)

It is a document which is prepared under the special instruction of the SBP. As per SBP regulation it is very important for the banker to know his customer very well. This form is prepared by the account opening officer according to the information given by the customer to him. Also the banker is required to update KYC time to time. This form is reviewed by the Branch Manager or Manager Operation.

C.

Letter of Thanks:

After this process a letter of thanks is sent to the customer in order to verify that the address provided by him is correct. But if the customer chooses the Hold Mail Facility then no letter of thanks is sent to him.

Issuance of Cheque Book:

1. FIRST TIME ISSUE OF THE CHEQUE BOOK After the account is opened, the customer requires a cheque book to conduct operation in his account. In order to have a cheque book the account holder signs an application to issue a personalized or blank cheque book.

PERSONALIZED CHEQUE BOOK:

A cheque book having the account title and account number printed on it is called as Personalized Cheque Book. This assures the safety of the cheques to be used.

BLANK CHEQUE BOOK:

It is the simple cheque book with no account title or account number on it. 2. REISSUANCE OF CHEQUE BOOK When two or three leaves are left in the cheque book, the account holder can demand for a new cheque book, so customer fills requisition slip which is attached in cheque book and gives to banker and receives a new cheque book for continuing the account. An account holder can also any other person to receive the new cheque book by giving the authority in the requisition

slip. The authorized person should bring the copy of CNIC to receive the cheque book. 3. BOOK The cheque book can be issued of 10, 25 or 50 leaves as per the requirements of the customer. The charges are Rs.5 per leaf where the excise duty is also charged. These charges are paid by the customer in cash when the cheque book is issued at first. While at the second issue and so on the charges are deducted from the account. 4. LOSS OF THE CHEQUE BOOK In case the cheque book is lost by the customer then first step the customer should take is to stop the payment of all the cheques. The charges for stopping the payment are Rs.200/- per cheque or Rs.500/- for the whole cheque book. The report the cheque numbers of the remaining cheques at the time of the lost. The officer of the NBP will enter these numbers in the system as stopped. Now no body can encash these cheques all over the Pakistan at any branch. Second move is to issue a new cheque book in lieu of the old one. For this the customer signs a Form B as a request of the loss and requisitions of the cheque book. The charges of the Form-B are Rs.100/- . It is one of the security documents of the bank. The Form-B requires a guarantor to sign on it. Along with the For-B the customer also signs an indemnity form to indemnify the bank from any liability claim or loss that may arise by the misplacement of the cheque book. CHARGES FOR THE ISSUANCE OF NEW CHEQUE

CLOSING

OF

ACCOUNT

There are number of reasons, why an account is closed. Some of most common reasons are mentioned below:

At the clients own request Death of account holder Bankruptcy of account holder Liquidation or winding up under the companies act. Dormant account: a dormant account is an account
which is not being operated by the customer from last six month. In this case the customer has to request the bank in written form to allow operation in such an account mentioning the reason of not operating the account regularly.

PROCEDURE FOR CLOSING AN ACCOUNT When customer wants to close his or her account due to any reason, he gives the written request either on simple page or on the bank format account closure request. Surrender the cheque book with the bank which immediately destroyed by the bank officer. The customer pays a statutory fee of Rs.100 to the bank in case of the current account. There are no charges for the closure in other types of accounts. The account opening officer gets an annexure approved by all the departments and then closes the account. This is a sort of clearance from all the departments. Account closed log file is printed in order to complete the process of closing an account. In the end the account opening form is filed in the closed accounts file. The account which is closed, that account is cancelled and never issued to any other person.

Updating

OF

ACCOUNT

It is the responsibility of the account opening department to update any changes in the account information as they take place. The following changes can be the change in the address, phone number and operating instructions.

Token
I have worked on token seat here my duty was to receive cheques and give tokens to the person who present the cheque. Following things should be kept in mind while receiving cheques: Date of cheque Title of account Branch stamp on cheque Amount in figures and words Signatures If all particulars are correct then write token number on the cheque and give cheque to the officer who verifies signatures enter it into computer and give to the cashier. Cashier sign and stamp the cheque and made payment to the customer.

PRESIDENTS

ROZGAR

SCHEME

(NBP KAROBAR)

PRESIDENTS ROZGAR SCHEME (NBP KAROBAR)

President Rozgar Scheme is recently introduced in NBP for unemployed people. Under this scheme NBP is offering Rikshaws and personal computers to start their personal business. Bank buy these items for the customer and customer pay the amount in a given period. The solution of Pakistans major socio-economic problems primarily lies in the development and growth of small & micro businesses. These will not only provide employment opportunities to ever-growing population demand but will also become the catalyst for breaking the vicious circle of poverty. In this regard, NBP has developed a full range of Products under the Presidents Rozgar Scheme with a brand name of NBP KAROBAR.

Under the Presidents Rozgar scheme, NBP offer following products: i) NBP Karobar Utility Store ii) NBP Karobar Mobile General Store iii) NBP Karobar Transport iv) NBP Karobar PCO v) NBP Karobar Tele-center

i)

NBP Karobar Utility Store:

The product has been designed in collaboration with UTILITY STORES CORPORATION OF PAKISTAN (USC) to provide financing facility of an average amount of Rs.100,000/- for a maximum period of five years with grace period of three months. This is available to all eligible citizens of Pakistan for setting-up small-scale Retail Outlet or Mobile Utility Store. Following two financing options are available under this product: NBP KAROBAR Utility Store (Shop) NBP KAROBAR Mobile Utility Store NBP Karobar Mobile General Store

NBP KAROBAR Utility Store (Shop): Financing facility available to set-up a small scale Retail Outlet (Utility Store in a shop) for purchase of furniture & fixtures. This is also applicable on payment of security deposit / advance rent under franchise from the USC. However, stocks are purchased by the customer.

NBP KAROBAR Mobile Utility Store:

Financing facility available to purchase a 2/3 wheeler, 4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) with attached Loader body (Thehla type) under franchise from the USC to carry utility goods for retail sale ideally in areas where accessibility to conventional utility stores is difficult.

NBP Karobar Mobile General Store (without USC Franchise):

This financing program has been designed on the similar pattern of Mobile Utility Store. The only difference is that the borrower has the liberty of procuring stock/supplies/grocery items from open market. Under this product the average loan size of Rs.100,000/- is given for a maximum period of five years with a grace period of three months.

vi)

NBP Karobar Transport:

The NBP Karobar Transport is designed to finance 2/3 wheeler, 4 stroke Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) to the eligible citizens of Pakistan for providing less expensive environment friendly transport facility. Under this product average loan size of Rs.100,000/- is provided for a maximum period of five years with a grace period of three months.

vii)

NBP Karobar PCO:

This product is designed to finance setting-up a PCO. NBP is providing financing for the purchase of Mobile/Wireless Telephone Set with connection, Credit Balance. The average amount of financing under this product is be Rs.5,000/- for a maximum period of two years with a grace period of three months.

viii)

NBP Karobar Tele-center:

This product is specially designed to finance setting-up a Telecenter. NBP is providing financing for the purchase of Mobile/Wireless Telephone Set with connection, Computer, Printer and Fax machine cum Photocopier etc. to establish tele-center on a rented shop or owned premises. The average amount of financing under this product is Rs.50,000/- for a maximum period of two years with a grace period of three months.

CONDITIONS TO APPLY
The application forms is available in all NBP branches The scheme is offered to eligible young and literate citizens of Pakistan. Falling within an age group of 18-40 years

Having a minimum qualification of Matriculation (except for females in the PCO/Tele-center product). The eligible borrowers are required to make a down payment of 15%. Asset and Life & Disability insurances is mandatory under this scheme. The 15% down payment is include 1st years asset insurance premium. The cost of life and disability insurance is borne by GoP. The mark-up rate for the 1st year is 12% Fifty percent (50%) of this rate is paid by the customer i.e. 6% and the balance of 6% is borne by GoP

Benefit of the Scheme

NBP is the largest bank of Pakistan with the customer base of over 10 million account holders. The scheme is being launched from designated branches of NBP, however, This scheme is providing direct and indirect jobs to the tune of approximately 5.4 million Pakistanis. It has the largest borrower base exceeding one million customers and growing. Compared to the average of its peers, for 2003, NBP was bigger by 53% in asset size, 100% in pre-tax profit, 25% in Return to Assets, 23% on Return on Equity 114% in Earning Per Share.

Procedure:
1. First of all Customer has to open an office account in NBP.

2. All the transactions of President Rozgar Scheme are done under this account. 3. Customer fills up a form, provided by credit officer. 4. This form contains following information b. Name of the borrower c. Fathers name d. ID card number e. ID card number of father f. Phone number g. Address h. Monthly income (if doing job or business) 5. Bank needs at least two References from his residential area. 6. Following information about the references is needed Name Address ID card number Mobile number or Phone number 7. In case of Telecentre, PCO bank ask for a guarantor as well as two references. 8. After filling the form customer has to fill a voucher of Rs1500 as transaction fee. 9. Customer gets receipt of the voucher. 10. Bank sent all the particulars to main branch for verification.

11. Main branch verifies all the details of customer i.e address, ID Card, Phone no. etc. 12. After that borrower deposits down payment which varies with products.

ne

RECCOMMENDATIONS

Some recommendations After going through SWOT analysis of NBP I have come to the conclusion that although NBP has major market share and one of the most specialized bank yet it needs to improve its efficiency in various dimentions.Here are some recommendations which if adopted can really proved to be fruitfull; 1. NBP has an exorbitant amount of funds at its disposal even then its infrastructure is relatively poor as compared to its competitors.This infrastructural deficiency is one of the main reasons of failure of attracting more customers.There is strong need to invest in this direction. 2. It is not considered by the customers as best provider of banking services as itdoes not spend handsomely on advertisement budget.There are neither any brouchers nor any other form of publicity so major portion of target customers are ignorant of its activities. 3. Customers feel hesitant while dealimg with NBP as customers have to surpass a lengthy and cumbersome procedure to avail any facility ,There is beureacratic structure found in NBP so employees are not concerned about their performance so there is need to replace this structure with that of based on merit system.

4. There are not found satisfactory Quality Service Standards as opposed to its competitors (other commercial banks) which have emphasis on customer focus like post of CRO(Customer Representative Officer) on the other hand NBP has no such post to guide their customers.Thus it is strongly recommended to appoint a CRO at each branch. 5. There is strong need to reposition the image of NBP in the minds of masses. People always prefer forging banks over NBP.So its required to change priorities and customers are to be given more priority. 6. The trend of Islamic banking is gaining popularity now people are getting more aware of Islamic banking products and other derivatives,in this regard NBP has not taken any substantial step.People are just hoping to replace present interest based system with pure non interest based banking so it is highly desirable to ponder on these lines and NBP is supposed to offer Islamic banking at mass level being a national bank NBP has much burden on its shoulder. 7. Credits cards and other consumer financing has been a big failure for the NBP now its time to dive in this race again in order to prove competitive in the present arena of severe competition and in order to retain its existing customer and also attracting new ones as well. 8. As sky is the limit so is the case with NBP it does need to find out more markets for both purposes ;for receiving deposits and for incurring investments in diverse fields in diverse countries in order to mitigate risk arising out of external environment.A diversified portfolio is the need of the time. 9. The branch where I work was lacking staff,resources(basic infrastructure I-e furniture,computers and space).At clearing ,pension there was one officer for each work category and in credit department there are only two officers one of them is a credit officer while other was a loan officer,the branch has a vast public interaction ,so this shortage of resources hinders the banking operations and customers remain unsatisfied ,specially at the time of the start of the month it was nearly impossible to respond to eeach customer and to attend them properly ,so I recommend on the basis of my personal observation that NBP Samanabad building is needed to be reconstructed in order to broaden it. Appointing more staff at this branch can solve the problems faced by the customers and employees as well particularly in pension department. 10. All the branches are not computerized so on time and real time transaction recording is not possible which causes failure to maintain

and ensure timely availability of up to date data.In most of the branches of NBP,manual recording is still followed by the staff which is time consuming ,more exposed to wastage and is not error free.So it is acute need to replace present partial computerized system with complete computerized system.