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IntcrnshIp Rcpnrt
NatInna! Bank nf PakIstan

Inloinship iopoil sulnillod in pailiaI fuIfiIInonl

of lho ioquiiononls foi lho dogioo of

MASTLRS IN USINLSS ADMINISTRATION
y
ACHA ALI HASSAN RAZA
Rog. No. 1631-21OOO5
IacuIly of Managononl Sludios
Iioslon univoisily
Lahore9aklsLan

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Dedication & Acknowledgements
I dedicate this internship report to my parents. Because oI their prayers and
encouragement I have been able to complete this report.
Praise is to Allah, the most Gracious and MerciIul, who blessed me with the knowledge
and wisdom and enabled me to overcome this task. Heartiest gratitude to my parents
without their continuous encouragement and love I could not have accomplished this
task.
I am very grateIul to my advisor Mr. Awais Mushtaq. Incharge placement centre Ior
their continuous help, support and time during the entire course oI my internship. I am
also very grateIul to all the staII members at NBP Model Town Branch, Lahore
especially Mr. Bashrat and Mr. Nouman Ior their guidance and encouragement.









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ecutive Summary
This report is based on internship in National Bank oI Pakistan branch name Model
Town. It is a Iamous and reputed bank oI Pakistan. National Bank oI Pakistan maintains
Iirst position in banking sector in Pakistan. This report is based on the activities which are
perIormed in this bank. This report contains marketing analysis, competitive analysis,
SWOT analysis, bank tariIIs and exchange rates oI National Bank oI Pakistan. There are
also stated the activities which I perIormed during my internship in the branch. In this
report also discuss the industry analysis oI banking system in Pakistan. There are also
mentioned the way oI investment, rates oI investment, all types oI Iinancing and loans
Iacilities the National Bank oI Pakistan provides. The problems in this branch are also
discussed. This report also intimates about the daily reserves which are required by the
branch to meet the need oI its daily transactions.









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Table of contents
Banking Industry Profile 1
Mission Statement 4
Vision, Mission 6
History 7
Board of Director 8
Overseas Branches 12
NBP Student Loan Scheme 15
S#VICS 17
T#AD FINANC OTH# BUSINSS LOANS 24
SWOT analysis 29
Suggestions a1nd #ecommendations
31
Conculsion 34
Bibliography 35
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Appendi


Banking industry Profile
In the banking industry, oIIice and administrative support workers constitute 2 out oI 3
jobs, tellers account Ior about 3 out oI 10 jobs. Many job opportunities are expected Ior
tellers and other oIIice and administrative support workers, because these occupations are
large and have high turnover. Many management positions are Iilled by promoting,
experienced, technically skilled proIessional personnel.
Banks saIeguard money and valuables and provide loans, credit, and payment services,
such as checking accounts, money orders, and cashier`s checks.

Banks also may oIIer investment and insurance products, which they were once
prohibited Irom selling.

Banks also may oIIer investment and insurance products, which they were once
prohibited Irom selling. As a variety oI models Ior cooperation and integration among
Iinance industries have emerged, some oI the traditional distinctions between banks,
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insurance companies, and securities Iirms have diminished. In spite oI these changes,
banks continue to maintain and perIorm their primary roleaccepting deposits and
lending Iunds Irom these deposits.
Banking is comprised oI two parts: Monetary AuthoritiesCentral Bank, and Credit
Intermediation and Related Activities. The Iormer includes the bank establishments oI the
U.S. Federal Reserve System that manage the Nation`s money supply and international
reserves, hold reserve deposits oI other domestic banks and the central banks oI other
countries, and issue the currency we use. The establishments in the credit intermediation
and related services industry provide banking services to the general public. They
securely save the money oI depositors, provide checking services, and lend the Iunds
raised Irom depositors to consumers and businesses Ior mortgages, investment loans, and
lines oI credit.
There are several types oI banks, which diIIer in the number oI services they provide and
the clientele they serve. Although some oI the diIIerences between these types oI banks
have lessened as they have begun to expand the range oI products and services they oIIer,
there are still key distinguishing traits. Commercial banks, which dominate this industry,
oIIer a Iull range oI services Ior individuals, businesses, and governments. These banks
come in a wide range oI sizes, Irom large global banks to regional and community banks.
Global banks are involved in international lending and Ioreign currency trading, in
addition to the more typical banking services. Regional banks have numerous branches
and automated teller machine (ATM) locations throughout a multi-state area that provide
banking services to individuals. Banks have become more oriented toward marketing and
sales. As a result, employees need to know about all types oI products and services
oIIered by banks. Community banks are based locally and oIIer more personal attention,
which many individuals and small businesses preIer. In recent years, online banks
which provide all services entirely over the Internethave entered the market, with some
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success. However, many traditional banks have also expanded to oIIer online banking,
and some Iormerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thriIt institutions, are
the second largest group oI depository institutions. They were Iirst established as
community-based institutions to Iinance mortgages Ior people to buy homes and still
cater mostly to the savings and lending needs oI individuals.
Credit unions are another kind oI depository institution. Most credit unions are Iormed
by people with a common bond, such as those who work Ior the same company or belong
to the same labor union or church. Members pool their savings and, when they need
money, they may borrow Irom the credit union, oIten at a lower interest rate than that
demanded by other Iinancial institutions.

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Mission Statement
To be recognized in the market place by Institutionalizing a merit & perIormance culture,
Creating a powerIul & distinctive brand identity, Achieving top-tier Iinancial
perIormance, and Adopting & living out our core values.
Core Values
We aim to be an organization that is founded on.
O Growth through creation oI sustainable relationships with our customers.
O Prudence to guide our business conduct.
O A national presence with a history oI contribution to our communities.
We shall work to.
O Meet expectations through Market-based solutions and products.
O Reward entrepreneurial eIIorts.
O Create value Ior all stakeholders.
We aim to be peopling who.
O Care about relationships.
O Lead through the strength oI our commitment and willingness to excel.
O Practice integrity, honesty and hard work. We believe that these are measures oI
true success.
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We have confidence that tomorrow we will be.

O Leaders in our industry.
O An organization maintaining the trust oI stakeholders.
O An innovative, creative and dynamic institution responding to the changing needs
oI the internal and external environment.

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

Mission
NBP will aspire to the values that make NBP truly
the Nation`s Bank, by:
Institutionalizing a merit and perIormance culture
Creating a distinctive brand identity by providing the highest standards oI
services
Adopting the best international management practices
Maximizing stakeholders value
Discharging our responsibility as a good corporate citizen oI Pakistan and in
countries where we operate



History
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NBP was established under the National Bank oI Pakistan Ordinance 1949 in Pakistan.
NBP occupies a unique position in the Iinancial sector oI Pakistan. It acts as an agent oI
the Central Bank wherever the State Bank does not have its own Branch. It also
undertakes Government Treasury operations. The National Bank oI Pakistan is a
Commercial Bank and transacts all types oI Banking Business. The National Bank oI
Pakistan was established on November 29, 1949 as a semi public commercial bank. The
Bank has the distinction oI acting agent oI the State Bank oI Pakistan and operates
treasuries where the State Bank oI Pakistan does not have any oIIice.

The Head OIIice oI the Bank is at Karachi. Ever since its establishment in 1949 it has
been leading Commercial Bank oI the nation, sole agent oI the This is only helping
material. Please solve by yourselI to clear your concepts. www.weblyceum.com is not
responsible Ior any mistake or any incompleteness.

Government oI Pakistan`s batter trade with countries and oI State Bank oI Pakistan Ior
the Government Treasury. In Pakistan, the bank provides complete bank Iacilities to the
people at over 1436 Branches operating even at the Iar lug Northern Areas. National
Bank oI Pakistan is the Iirst bank in the country to introduce and implement supervised
Ruler Credit Programmed help small Iarmer to obtain loans at his doorsteps on easy
terms and conditions. It has also played a pioneering role in introduction oI proIit and
loss sharing System (PLS) as a major towards Islamization oI economy.
NBP is 100 owned by the Government oI Pakistan (GoP).

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Audit Committee
Tariq Kirmani ( Chairman)
Nazrat Bashir (Member)
Haniya Shahid Naseem( Member)
Auditors
Anjum Asim Shahid Rahman
Chartered Accountants
Legal Advisors:
Mandviwala & ZaIar
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Advocates & Legal Consultants

#egistered office:
NBP Building
1.I Chundrigar Road Karachi, Pakistan

Corporate and financial reporting framework
(Code of Corporate Governance)
The board is Iully aware oI its responsibilities established by the Code oI Corporate
Governance issued by the Securities & Exchange Commission oI Pakistan (SECP). They
are pleased to give the Iollowing declarations/statements to comply with the requirements
oI the Code.
O The Iinancial statements (Balance sheet, ProIit and Loss Account, Cash Flow
Statement, Statement oI Changes in Equity and notes Iorming part thereoI),
prepared by the management oI the bank give the inIormation required by the
Companies Ordinance, 1984 in the manner so required and respectively give a
true and Iair view oI the state oI the bank's aIIairs and oI the results oI its
operations, changes in equity and its cash Ilows Ior the year then ended.
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1. Proper books oI accounts have been maintained.
2. Appropriate accounting policies have been consistently applied in the
preparation oI the Iinancial statements and accounting estimates are based on
the reasonable and prudent judgment.
3. Approved Accounting Standards have been Iollowed in preparation oI the
Iinancial statements and there is no departure Irom the said standards.
4. The system oI internal control is sound in design and has been eIIectively
implemented and monitored throughout the year. The Board is responsible Ior
establishing and maintaining the system oI internal control in the bank and Ior
its ongoing monitoring. However, such a system is designed to manage rather
than eliminate the risk oI Iailure to achieve objectives, and provide reasonable
but not absolute assurance against material misstatements or loss.

The process used by the Board to review the eIIiciency and eIIectiveness oI the
system oI internal control includes, the Iollowing:
1. The Board has Iormed an audit committee comprising oI three non executive
directors. The audit committee has written terms oI reIerence in the Iorm oI a
charter, which has been approved by the Board oI Directors. The committee is
responsible Ior the oversight oI the internal audit Iunction and reviews its
approach and methodology Irom time to time. It also receives and reviews the
internal and external audit reports relating to the internal control, accounts and
related matters. The committee on a continuous basis reviews the material
control weaknesses and areas oI concern and actions to be taken by the
executive management to address these issues.
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2. Internal audit department oI the bank conducts the audit oI all branches,
regions and groups at head oIIice level on ongoing basis to evaluate the
eIIiciency and eIIectiveness oI internal control system and proper Iollow up oI
irregularities and control weaknesses is carried out.
3. The Board receives conIirmations/representations Irom all group and regional
heads on annual basis conIirming eIIectiveness oI the internal control system
established and maintained by them within their Iunction.
4. The principal Ieatures oI the bank's control Iramework include:
5. The bank has clearly deIined organizational structure which supports clear
lines oI communications and reporting relationships.
6. There exists a properly deIined Iinancial and administrative power oI various
committees and key management personnel, which supports delegation oI
authority and accountability.
7. The bank has eIIective budgeting system in place. Annual budget oI the bank
is approved by the Board and monthly comparisons oI actual results with the
budget are prepared and reviewed by the senior management.
8. The bank has a comprehensive Iramework oI written policies and procedures
on all major areas oI operations such as Credit, Treasury Operations, Finance,
Internal audit and Compliance approved by the Board.
9. There are no signiIicant doubts about the bank's ability to continue as a going
concern.
10.There has been no material! Departure Irom the best practices oI the corporate
governance as detailed in the listing regulations.
11.Key operating and Iinancial data is available in the annual report.


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16 Overseas Branches
4 #epresentative Offices
1 Subsidiary
1 1oint Venture
29 #egional Offices
1,189 Branches
130 Online Branches
4 Subsidiaries
Overseas Branches
America and urope #egion
O USA
O Canada
O Germany
Far ast #egion
O Hong Kong
O apan
O South Korea
O China
Middle ast, Africa & South Asia #egion
O Bahrain
O Egypt
O Bangladesh
O EPZ

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Central Asian #epublics

O AIghanistan
O Turkmenistan
O Kyrgyz Republic
O Kazakhstan
O Uzbekistan
O Azerbaijan
Domestic Branches
Sind
O Dadu/ Sanghar
O Hyderabad
O acobabad/ Shikarpur
O Karachi
O Larkana
O Mirpurkhas/ Badin
O Nawabshah/ N' Feroze
O Sukkur/ Khairpur
O Tharparkar
Punjab
O Bahawalpur
O D.G. Khan/ RYKhan
O Faisalabad
O Gujranwala
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O Sialkot/ Narowal
O Islamabad
O hang
O helum/ Gujrat/ Chakwal
O Lahore
O Multan/ Baha'nagar
O Murree/ Attock/ Gilgit
O Rawalpindi
O Sahiwal
O Sargodha/ Sheikhupura
NWFP
O Abbottabad/ Mansehra
O Bannu/ D.I. Khan
O Kohat / Mingora
O Mardan
O Peshawar
Baluchistan
O All Branches
Azad Kashmir
O MuzaIIarabad
O Mirpur
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NBP Student Loan Scheme

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002
budget speech, a STUDNTS LOAN SCHM (SLS) Ior Education was launched by
the Government oI Pakistan in collaboration with major commercial banks oI Pakistan
(NBP, HBL, UBL, MCB and ABL). Under the Scheme, Iinancial assistance is provided
by way oI Interest Free Loans to the meritorious students who have Iinancial constraints
Ior pursuing their studies in ScientiIic, Technical and ProIessional education within
Pakistan.

The Scheme is being administered by a high powered committee comprising Deputy
Governor, State Bank oI Pakistan, Presidents oI the commercial banks and Deputy
Secretary, Ministry oI Finance, Government oI Pakistan.

The objective of the Students Loan Scheme is to provide Iinancial assistance to the
meritorious students oI insuIIicient means who have obtained 70 marks in the last
public examination and are unable to pursue their studies within Pakistan due to Iinancial
diIIiculties.

Loans Iacility is available to those students who are nationals oI Pakistan including
Northern Areas, Federally Administered Tribal Areas and Azad ammu and Kashmir and
oI age not exceeding 20 years Ior graduation, 30 years Ior post-graduation and 35 years
Ior PhD at the time oI admission.

The maximum period oI repayment oI loan is 10-Years Irom the date oI disbursement
oI Iirst installment .The borrower shall repay the loan in monthly installment aIter six
months Irom the date oI Iirst employment or one year Irom the date oI completion oI
studies, which ever is earlier
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Loan is granted only to those students who have been admitted to the approved under
noted AIIiliated Colleges /Universities.
Under the Scheme, loans are available in the Iollowing subjects.
O Engineering
O Electronics
O Oil Gas & Petro-Chemical Technology
O Agriculture
O Medicine
O Physics
O Chemistry
O Biology, Molecular Biology & Genetics
O Mathematics
O Other Natural Sciences
O DAWA and Islamic urisprudence (LL.B/LL.M Sharia)
O Computer Science/InIormation System and Technology including hardware.
O Economics, Statistics and Econometrics
O Business Management Sciences
O Commerce
1. The Iacility under this Scheme is restricted to the studies in the above-mentioned
subjects only or such other subjects as may be approved by the Apex Committee
Irom time to time.
2. The amount oI loans under the Scheme covers the cost oI Iee, books and boarding
Ior the entire period oI study.
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Schedule Fee and boarding expenses excluding meal charges is disbursed

directly to the University/College.
3. The amount oI procurement oI textbooks is disbursed directly to the student.
4. The students desirous oI availing loan under the Scheme may apply on
prescribed Form Ior Iinancial assistance subject to he or she has got admission on
merit through normal procedure in the Universities/ Colleges aIore-mentioned.
5. Application Forms are available Irom the designated branches.
6. Applicants are required to submit/send their applications duly completed in all
respect, to the designated branches indicated against Universities/ Colleges.
Those students who have already availed this facility last year need not to
apply.
S#VICS
DIFF#NT TYPS OF ACCOUNTS OP#ATD BY
NATIONAL BANK OF PAKISTAN

The bank accepts the Iollowing types oI deposits.
O Current deposits
O PLS Saving deposits
O Fixed deposits account (Time Deposit)
O Foreign Currency Account

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Members oI the banker`s clearing house which Iacilitates the settling oI daily balances
due between member banks arising Irom the cheques and cash transactions throughout
the country, whether by the general public or individual banks.

Clearing
Is the transIer oI Iunds Irom one branch oI bank to the other branch oI the same
bank or the other bank on which the instrument is drawn, without involving the cash
through state bank`s clearing house.

Clearing house
Is the place where both the debtors and creditors are diIIerent commercial banks
and they settle their claims. There are two types oI clearing:
O Inward Clearing
It means cheques which are drawn on our bank but are presented to the branch oI 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 outIlow oI cash.
O Outward Clearing
It means the cheques oI another bank, which are presented on our branch by our
customers. Outward clearing results into inIlow oI cash Irom the payee bank.

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DMAND D#AFTS
II you are looking Ior a saIe, speedy and reliable way to transIer money, you can now
purchase NBP`s Demand DraIts at very reasonable rates. Any person whether an account
holder oI the bank or not, can purchase a Demand DraIt Irom a bank branch.
SWIFT SYSTM
The SWIFT system (Society Ior Worldwide Inter bank Financial Telecommunication)
has been introduced Ior speedy services in the area oI home remittances. The system has
built-in Ieatures oI computerized test keys, which eliminates the manual application oI
tests that oIten cause delay in the payment oI home remittances. The SWIFT Center is
operational at National Bank oI Pakistan with a universal access number NBP-APKKA.
All NBP overseas branches and overseas correspondents (over 450) are drawing
remittances through SWIFT.
Using the NBP network oI branches, you can saIely and speedily transIer money Ior your
business and personal needs.
LTT#S OF C#DIT
NBP is committed to oIIering its business customers the widest range oI options in the
area oI money transIer. II you are a commercial enterprise then their Letter oI Credit
service is just what you are looking Ior. With competitive rates, security, and ease oI
transaction, NBP Letters oI Credit are the best way to do your business transactions.
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T#AVL#S CH"US
1. Negotiability:
Pak Rupees Traveler`s Cheques are a negotiable instrument
2. Validity:
There is no restriction on the period oI validity
3. Availability:
At 700 branches oI NBP all over the country
4. ncashment:
At all 400 branches oI NBP
5. Limitation:
No limit on purchase
6. Safety:
NBP Traveler`s Cheques are the saIest way to carry our money.
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PAY O#D#
NBP provides another reason to transIer customer`s money using their Iacilities. Their
pay orders are a secure and easy way to move customer`s money Irom one place to
another. And, as usual, their charges Ior this service are extremely competitive.
1. Issuance of Pay order
O For NBP Account Holder Rs. 93/- (Flat)
O For NBP Non-Account Holder Rs. 174/- (Flat)
O Rs. 25/- (Flat) Irom student Ior payment oI Iee Iavoring educational institution
2. Issuance of duplicate Pay order
O Ior NBP Account Holder Rs. 100/- (Flat)
O Ior NBP Non-Account Holder Rs. 250/- (Flat)
MAIL T#ANSF#S
Move your money saIely and quickly using NBP Mail TransIer service. And they also
oIIer the most competitive rates in the market.

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FO#IGN #MITTANCS
To Iacilitate its customers in the area oI Home Remittances, National Bank oI Pakistan
has taken a number oI measures to:
Increase home remittances through the banking system
Meet the SBP directives/instructions Ior timely and prompt delivery oI remittances to the
beneIiciaries
New Features:
The existing system oI home remittances has been revised/signiIicantly improved and
well-trained Iield Iunctionaries are posted to provide eIIicient and reliable home
remittance services to nonresident Pakistanis at 15 overseas branches oI the Bank besides
Pakistan International Bank (UK) Ltd., and Bank Al-azira, Saudi Arabia.
O Zero TariIIs: NBP is providing home remittance services without any charges.
O Strict monitoring oI the system is done to ensure the highest possible security.
O Special courier services are hired Ior expeditious delivery oI home remittances to
the beneIiciaries.
SHO#T T#M INVSTMNTS
NBP now oIIers excellent rates oI proIit on all its short term investment accounts.
Whether you are looking to invest Ior 3 months or 1 year, NBP`s rates oI proIit are
extremely attractive, along with the security and service only NBP can provide.

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National Income Daily Account (NIDA)

The scheme was launched in December 1995 to attract corporate customers. It is a
current account scheme and is part oI the proIit and loss system oI accounts in operation
throughout the country.
"UITY INVSTMNTS
NBP has accelerated its activities in the stock market to improve its economic base and
restore investor conIidence. The bank is now regarded as the most active and dominant
player in the development oI the stock market.
NBP is involved in the following:
O Investment into the capital market
O Introduction oI capital market accounts
NBP`s involvement in capital markets is expected to increase its earnings, which
would result in better returns oIIered to account holders.
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COMM#CIAL FINANC
Let them help make your dreams become a reality
Their dedicated team oI proIessionals truly understands the needs oI proIessionals,
agriculturists, large and small business and other segments oI the economy. They are the
customer`s best resource in making NBP`s products and services work Ior them.T
#AD FINANC OTH# BUSINSS LOANS
O AG#ICULTU#AL FINANC
O CO#PO#AT FINANC
AG#ICULTU#AL FINANC
NBP provides Agricultural Finance to solidiIy Iaith, commitment and pride oI Iarmers
who produce some oI the best agricultural products in the World.
Agricultural Finance Services:
~I Feed the World program, a new product, is introduced by NBP with the aim to help
Iarmers maximize the per acre production with minimum oI required input. Select Iarms
will be made role models Ior other Iarms and Iarmers to Iollow, thus helping Iarmers
across Pakistan to increase production.
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Agricultural Credit:
The agricultural Iinancing strategy oI NBP is aimed at three main objectives:-
O Providing reliable inIrastructure Ior agricultural customers
O Help Iarmers utilize Iunds eIIiciently to Iurther develop and achieve better
production
O Provide Iarmers an integrated package oI credit with supplies oI essential inputs,
technical knowledge, and supervision oI Iarming.
Agricultural Credit (Medium Term)
O Production and development
O Watercourse improvement
O Wells
O Farm power
O Development loans Ior tea plantation
O Fencing
O Solar energy
O Equipment Ior sprinklers
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Farm Credit:
NBP also provides the Iollowing subsidized with ranges oI 3 months to 1 year on a
renewal basis.
O Operating loans
O Land improvement loans
O Equipment loans Ior purchase oI tractors, Iarm implements or any other
equipment
O Livestock loans Ior the purchase, care, and Ieeding oI livestock
Production Loans:
Production loans are meant Ior basic inputs oI the Iarm and are short term in nature.
Seeds, Iertilizers, sprayers, etc are all covered under this scheme.
CO#PO#AT FINANC
Working Capital and Short Term Loans:
NBP specializes in providing Project Finance Export ReIinance to exporters Pre-
shipment and Post-shipment Iinancing to exporters Running Iinance Cash Finance
Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-shipment
/ Post Shipment Agricultural Production Loans.
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Medium term loans and Capital penditure Financing:

NBP provides Iinancing Ior its clients` capital expenditure and other long-term
investment needs. By sharing the risk associated with such long-term investments, NBP
expedites clients` attempt to upgrade and expand their operation thereby making possible
the IulIillment oI their clients` vision. This type oI long term Iinancing proves the bank`s
belieI in its client's capabilities, and its commitment to the country.
Loan Structuring and Syndication
National Bank`s leadership in loan syndicating stems Irom ability to Iorge strong
relationships not only with borrowers but also with bank investors. Because they
understand their syndicate partners` asset criteria, they help borrowers meet substantial
Iinancing needs by enabling them to reach the banks most interested in lending to their
particular industry, geographic location and structure through syndicated debt oIIerings.
Their syndication capabilities are complemented by their own capital strength and by
industry teams, who bring specialized knowledge to the structure oI a transaction.
Cash Management Services:
With National Bank`s Cash Management Services, the customer`s sales collection will be
channeled through vast network oI NBP branched spread across the country. This will
enable the customer to manage their company`s total Iinancial position right Irom your
desktop computer. They will also be able to take advantage oI NBP outstanding range oI
payment, ejection, liquidity and investment services. In Iact, with NBP, you`ll be
provided everything, which takes to manage your cash Ilow more accurately.
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INT#NATIONAL BANKING
National Bank oI Pakistan is at the IoreIront oI international banking in Pakistan which is
proven by the Iact that NBP has its branches in all oI the major Iinancial capitals oI the
world. Additionally, NBP have recently set up the Financial Institution Wing, which is
placed under the Risk Management Group.
The role oI the Financial Institution Wing is:-
O To eIIectively manage NBP`s exposure to Ioreign and domestic correspondence
O Manage the monetary aspect oI NBP`s relationship with the correspondents to
support trade, treasury and other key business areas, thereby contributing to the
bank`s proIitability
O Generation oI incremental trade-Iinance business and revenues
NBP offers
O The lowest rates on exports and other international banking products
O Access to diIIerent local commercial banks in international banking
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SWOT ANALYSIS
Strengths:
O Public conIidence
O Sound Iinancial strength
O Highest proIitability
O 'ast operational network
O Role in economic development
O Utility bills collections
O Corporate branches
O Evening banking
O EIIicient home remittance
O Recognition oI hard work oI staII
O SWIFT
O Internet access (www.NBP.com.pk)
O Pension & salaries payments
O Online city branch
Weaknesses:
O Lack oI good delegation
O Inadequate, poorly placed network technology
O complex MIS
O Deep rooted bureaucratic approval
O Lack oI long term & short term plans
O Less share in import & export business
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O Poor resource utilization

O Need better service policy
O Frequent change in senior management
Opportunities:
O New style management
O Introduction oI new products and services
O Introduction oI new technology & electronic banking
O Capital management & equity Iinancing
O Secondary market operations
O New deposit scheme
Threats:
O Establishment oI new private Iinancial institutions & expansion
O Govt. sponsored schemes
O Political pressure
O Reducing branch network
O New products Irom private Pakistan Establishment oI new private Iinancial
institutions & expansion
O New products Irom private Pakistani & Ioreign banks
O Non-banking institutions
O Inability to change
O Stakeholders interests
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Suggestions and #ecommendations

Based on the SWOT and PEST analysis oI the National Bank oI Pakistan, it is observed
that the Bank like the other public sector industries has not been showing up to mark
perIormance. There is a long list oI weaknesses that is given on the previous page. Most
oI them are going along since long time and that all eIIorts made to remove them have
not succeeded. On the basis oI SWOT analysis oI the Bank the Iollowing suggestions and
recommendations are given.
Bank should try to get rid oI the political inIluence to be able to compete
in the industry with prudent and strong policies.
The undue reliance on the public sector be minimized and ventures oI
private sectors should be taken as well.
RedeIining oI rules, regulations and policies should be made implemented
at all costs.
EIIorts oI great importance to be made Ior the over the counter services oI
general banking making it more simple and Iaster to get a better response
oI the customers.
The behavior oI the employee, especially on the counter has to be strictly
monitored and checked.
The still existed bureaucratic approval system has to be demolished.
All advances should be made by getting the maximum security and should
Iocus on productive work.
Better and comprehensive long-term and short-term planning should be
made to
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Iorecast the Iuture needs.

There is a possibility oI establishing a task Iorce to ascertain the
eIIectiveness oI the policies being implemented.
The Bank should develop a comprehensive recruitment policy to make
only the competent ones to be on the job.
There is a still a vast pool oI incompetent employees that has to right
sized.
There is a lack oI promotional element in the planning and budgetary
decisions oI the Bank that has to think seriously.
All branches oI the Bank should be computerized Ior increasing the
eIIectiveness and eIIiciency oI its employees.
EIIorts should be continued to keep the powers oI employees union to the
minimum, like the current situation.
Promotions must not be delayed and should be made on time to Iurther
increase the commitment and eIIiciency oI the employees.

These and many other that can make a good set oI recommendations, which have to be
made possible to escape Irom the threats and weaknesses and the risks in environment
that surrounds the Bank. The management do considers the policy matter that is not
helping the Bank, but are still in practice due the absence oI prudentially regulated
system to protect them and the Bank.
EIIorts have been made with serious concern to give NBP a status that it has to maintain
by having practices oI:
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Right sizing oI the employees.

By closing unproIitable branches.
By introducing a merit based selection criteria.
Promotions made conditional with qualiIications.


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CONCLUSION
We Iirmly believe that NBP has the vision, which will enable it to achieve even better
results, saIeguard the interest oI its customers and to assist NBP in its march towards
progress and prosperity in Iuture.
By extending and targeting NBP`s research to improve bank earnings, through customer
Iocus oI its commercial and corporate branches, and by enhanced eIIorts towards the
development oI human capital, we believe that NBP shall very soon transIorm the bank
Irom a bureaucratic organization to a Iast paced, modern, and competitive bank.


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Bibliography
SurIing the website oI National Bank oI Pkistan(www.nbp.com.pk)
Reading the annual report oI the NBP bank
Mr. Basharat (Pension Section Head) Mob:0322-4288098
Mr. ZaIar (Operation Manager) Mob:0300-8843049
Mr. Tariq Rehman vice president and Iormer manager in this branch