Name: Bilal Ahmed ID: Mc090200863 Degree: MBA Specialization: Finance

Internship Report On National Bank Of Pakistan

Brief Introduction of the Organization

November 9,1949 National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance of 1949. National Bank of Pakistan is the largest commercial bank operating in Pakistan. It act as trustee of public funds. It is the agent of the State Bank of Pakistan.

Brief Introduction of the Organization

Today NBP is a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing. Developing the country's small and medium enterprises.

BUSINESS VOLUME
Items Vu39 2005 Rs. In .Million 2006 Rs. In .Million 2007 Rs. In .Million 2008 Rs. In .Million 2009 Rs. In .Million %Growth 2009 Over2005

Total Asset Deposits Advances Investments Equity Per-Tax-Profit Profit After tax Net income Return on asset Return on equity

577.7 463.4 268.8 157.0 37.6 19.06 12.71 32.8 2.25 40.61

635.1 501.9 316.1 139.9 53.0 26.3 17.2 42.3 2.81 37.57

762.2 591.9 340.7 211.1 69.3 28.1 19.0 47.2 2.72 31.12

817.8 624.9 413.0 170.8 81.4 23.0 15.5 53.5 1.96 20.57

944.2 426.5 475.2 217.6 94.8 22.3 18.2 57.5 2.07 20.6

63.4 56.8 76.8 38.6 152.1 17.0 43.2 75.3 -8.0 -49.2

COMPETITORS OF THE ORGANIZATION

Habib Bank Limited United Bank Limited Muslim Commercial Bank Allied Bank Limited Bank Al-Falah Faysal Bank Standard Charter Askari Bank

Organizational Hierarchy Chart

Training Program
Task assignment to during my internship are following. The first work to given me to deal with the customers who want to withdraw cash by cheque. Second task was Account Opening. Third task was issuance of cheque book Forth task was bank payment slip

Training Program
Fifth task was Bank cash payment slip Sixth task was western union and eremittance cases. Challan receipt

Ratio Analysis
Ratio Analysis National Bank of Pakistan

Current asset = current asset /current liabilities Year 2007

Current Ratio

Year 2008

Year 2009

573742980 / 319561457 = 670838893 / 380326733 = 1.763 1.795

294870271/430941188 = 0.684

Current ratio
1.8 1.6 1.4 1.2 1 Current Ratio 0.8 0.6 0.4 0.2 0 Year 2007 Year 2008 Year 2009

Acid test ratio

Ratio Analysis National Bank of Pakistan

Acid test ratio = current asset-prepayments / current

liabilities

Year 2007
Acid test Ratio

Year 2008

Year 2009

(525124576(619513608(22259704612301167)/319561457 16427163)/380326733= 23102859)/430941188= =1.604 1.058 0.462

Acid test ratio

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Year 2007 Year 2008 Year 2009

Working capital
Ratio Analysis National Bank of Pakistan

Working capital = current asset current liabilities Year 2007 Year 2008 Year 2009
Working capital
525124576 -319561457 619513608-380326733 222597046 430941188 = 205563119 =239186875 = (208344142)

Working capital

250000000 200000000 1 50000000 1 00000000 50000000 0 -50000000 -1 00000000 -1 50000000 -200000000 -250000000 Y ear 2007 Y ear 2008 Y ear 2009

Debt ratio
Ratio Analysis National Bank of Pakistan

Debt ratio = total debt / total asset Year 2007

Debt ratio 645855939 /

Year 2008
715299108 /

Year 2009

824676145 / 762193593 = 0.84 944232762 =0.8733 817758326 = 0.87

Debt ratio

0.875 0.87 0.865 0.86 0.855 0.85 0.845 0.84 0.835 0.83 0.825 0.82 Y ear 2007 Y ear 2008 Y ear 2009

Debt / Equity Ratio

Ratio Analysis National Bank of Pakistan

Debt / Equity Ratio =total debt / total equity

Year 2007

Year 2008

Year 2009

645855939/11633 715299108/102459 824676145 / Debt / equity ratio 7654 = 5.551 218 = 6.981 119556378 = 6.897

Debt / Equity Ratio

7 6 5 4 3 2 1 0 Y ear 2007 Y ear 2008 Y ear 2009

Total Capitalization Ratio

Ratio Analysis National Bank of Pakistan
Total Capitalization Ratio: Long-Term Debt / LongTerm Debt + Owners' Equity

Year 2007
Total 357234523 / Capitaliza (357234723+ tion Ratio 116337654) = 0.754

Year 2008
364418425 / (364418425 + 102459218) = 0.780

Year 2009
436004819 / (436004819+ 119556378) = 0.784

Total Capitalization Ratio

0.785 0.78 0.775 0.77 0.765 0.76 0.755 0.75 0.745 0.74 0.735 Y ear 2007 Y ear 2008 Y ear 2009

Net profit margin

Ratio Analysis National Bank of Pakistan
Net profit margin = net profit after tax/ interest earned * 100

Year 2007

Year 2008

Year 2009

Net profit 51147457/505694 60933234/6094279 70791984/7794769 margin 81 *100 8*100 7*100 = 101.142 = 99.984 = 90.819

Net profit margin

1 02 1 00 98 96 94 92 90 88 86 84 Y ear 2007 Y ear 2008 Y ear 2009

Return on asset ratio

Ratio Analysis National Bank of Pakistan
Return on asset ratio = Net profit after tax/ Total assets

Year 2007
Return 60933234 / on asset 762193593 ratio = 0.079

Year 2008

Year 2009

51147457/8177583 70791984/ 26 944232762 = 0.062 = 0.074

Return on asset ratio

0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Y ear 2007 Y ear 2008 Y ear 2009

DuPont Return on Assets

Ratio Analysis National Bank of Pakistan
DuPont Return on Assets = Net Profit Margin /Return on Assets

Year 2007
DuPont 1.01/0.079 = Return 12.78 on Assets

Year 2008

Year 2009

0.99/0.062 = 15.96 0.90/0.074= 12.162

DuPont Return on Assets

1 6 1 4 1 2 1 0 8 6 4 2 0 Y ear 2007 Y ear 2008 Y ear 2009

Operating Income Margin

Ratio Analysis National Bank of Pakistan
Operating Income Margin = Operating income / Net sale *100

Year 2007
Operatin 78804419 / g Income 50569481 * 100 Margin = 155.83

Year 2008

Year 2009

2532681/ 60942798 45451673 / 77947697 * 100 *100 =4.155 = 58.31

Margin Operating Income

1 60 1 40 1 20 1 00 80 60 40 20 0 Y ear 2007 Y ear 2008 Y ear 2009 M argin Operating Incom e

Return on Operating Assets

Ratio Analysis National Bank of Pakistan
Return on Operating Assets = Net Income / Net operating fixed assets

Year 2007

Year 2008

Year 2009

Return 9026728 / 7542408 / 4088327 / on 25922979 = 0.348 24217655 = 0.3114 25147192 = 0.162 Operatin g Assets

Return on Operating Assets

0.35 0.3 0.25 0.2 Return on Operating Assets 0.1 5 0.1 0.05 0 Y ear 2007 Y ear 2008 Y ear 2009

Return on Equity
Ratio Analysis National Bank of Pakistan
Return on Equity = Net Income / Shareholder's Equity

Year 2007
Return on Equity 9026728 / 116337654 = 0.077

Year 2008
7542408 /

Year 2009
4088327 /

102459218 = 0.073 119556378 = 0.034

Return on Equity
0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Y ear 2007 Y ear 2008 Y ear 2009 Return on Equity

Gross Profit Margin

Ratio Analysis National Bank of Pakistan
Gross profit margin = Gross profit / net sales *100

Year 2007

Year 2008

Year 2009
38458048 / 77947697 * 100 = 49.338

Gross Profit 33629470/50569481 * 37058030/60942798* Margin 100 = 66.201 100 = 60.807

Gross Profit Margin

70 60 50 40 Gross profit m argin 30 20 1 0 0 Y ear 2007 Y ear 2008 Y ear 2009

Total Assets Turnover

Ratio Analysis National Bank of Pakistan
Total Assets Turnover = interest earned / total assets

Year 2007

Year 2008

Year 2009
77947697 / 944232762 = 0.082

Total Assets 50569481 /762193593 60942798 / 817758326 = 0.074 Turnover = 0.066

Total Assets Turnover

0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Y ear 2007 Y ear 2008 Y ear 2009 Total asset turnover

Fixed Assets Turnover

Ratio Analysis National Bank of Pakistan

Fixed Assets Turnover = Net Sale / Fixed assets

Year 2007

Year 2008

Year 2009
77947697 / 25147192 = 3.099

Fixed Assets 50569481 / 25922979 60942798 / 24217655 Turnover = 1.950 = 2.516

Fixed Assets Turnover

3.5 3 2.5 2 Fixed asset turnover 1 .5 1 0.5 0 Y ear 2007 Y ear 2008 Y ear 2009

Earning per Share

Ratio Analysis National Bank of Pakistan

Earning per share = net profit available for equity shareholder / numbers of equity shares

Year 2007

Year 2008

Earning per 15458590 / 1076307 = 18211846 / 1076307 = Share 16.920 14.36

Earning per Share

1 7 1 6.5 1 6 1 5.5 1 5 1 4.5 1 4 1 3.5 1 3 Y ear 2007 Y ear 2008 Earning per share

Price/Earning Ratio
Ratio Analysis National Bank of Pakistan

Price/Earning Ratio = Stock price per share / Earning per share

Year 2007
Price/Earnin g Ratio

Year 2008
64 / 16.92 = 3.78

58 / 14.36 = 7.03

Price/Earning Ratio
8 7 6 5 4 3 2 1 0 Y ear 2007 Y ear 2008 Price earning ratio

Conclusion
Ratio analysis shows the financial health of the organization .It shows as follow

Current ratio is becoming low Acid test ratio is low in 2009 Working capital ratio is also low as compare to 2007 and 2009 Debt ratio is good in 2008 and 2009 Debt /equity ratio is high in 2008 and 2009 Total capitalization is good in 2008 and 2009 Net profit margin is high in 2007 and 2008 Return in asset is high in 2007 and low in 2008 Return on equity is high in 2007 and 2008 and low in 2009 Gross profit is high in 2007 and 2008 Total asset turnover ratio is good in 2008 and 2009

Recommendations

Bank should increase its current asset to pay its short terms obligations . It should be increase it working capital ratio in 2009 it shows that bank should not pay off its short term vu39.com liabilities with its current asset Debt to equity show the company ability borrow and repay the money. This ratio should be increased. Capitalization ratio should be high so that the company done his operations efficiently. Net profit ratio should be high so that risk become low and sales increases. Return on asset vu39.com is should be high it show how management is using its asset to generate earnings. Return on equity shows how much profit the company generates by investing in common stock . This ratio should be high .

Thanks