finance internship report on national bank of pakistan 2012
TRANSCRIPT
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 1/70
Virtual University of Pakistan
Evaluation Sheet for Internship Report
Spring 2011
FINI61! Internship Report "Finan#e$ %re&it 'ours! (
Na)e of Stu&ent! Muhammad Afaaq
Stu&ent*s I+! MC090400284
Evaluation %riteria Result
Report ,riting Pass
Presentation - Viva vo#e
Final Result
1
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 2/70
2
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 3/70
Finan#e "FINI.61$Internship report of National /ank of Pakistan
1 itle Page!
Name of the organization: National Ban of Paistan
Name of the !nternee: Muhammad Afaaq
"tudent !#: MC090400284
"ession: 2009 $ 2011
"u%mission date of the internshi& re&ort: 0'$0'$2011
Name of the (ni)ersit*: +irtual (ni)ersit* of Paistan
VU logo!
,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 4/70
2 etter of Un&ertaking
( S#anne& #opy of the internship #ertifi#ate
"provi&e& 3y the organi4ation$
5 +e&i#ation
t first &e&i#ating this ,ork to l)ighty '7 ,ithout his )er#y an& sy)pathy
I ,as not a3le to a##o)plish this ,ork l)ighty ' gave )e po,er an&
4
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 5/70
#onfi&en#e to &one )y internship an& also '89 PR8P'E ':R
;U';;+ "Pea#e 3e upon hi)$ ,ho is a light for hu)anity I also &e&i#ate this
,ork to )y lovely parents an& also &e&i#ating this ,ork to our honora3le instru#tor
of Fini61 ,ho help )e a lot to &o )y ,ork a##urately an& gui&e )e in )y every
&iffi#ulty
< #kno,le&ge)ent
1st of all ! thans to m* Almight* A--A. /ho ga)e me &o/er and onfidene to done
m* internshi& and .- P3P.5 .A6A3A5 M(.AMMA# 7Peae %e u&on him
/ho is a light for humanit*
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 6/70
!n starting am little %it onfuse %eause its m* 1st e;&eriene to /or in &ratial life %ut
m* 1st e;&eriene is )ar* good ! man* good &eo&les hel& me to do m* /or effeti)el*
s&eiall* m* instrutor of <!N! =19 hel& me a lot /hen ! onfuse in some &arts of
internshi& ! mail to instrutor res&eted "ir /ere al/a*s read* to guide me during the
re&ort /or> /hih ga)e me a lot of %a$u& ! also thans to m* %an em&lo*ees of the
NBP /ho remained su&&orti)e and oo&erati)e throughout the re&ort to om&lete it and
s&eiall* %ranh Manager Miss Asia Aslam
M* some senior friends also guide me to mae m* internshi& re&ort ! /ould lie to sa*
thans to all that &eo&les Allah %lesses them all and gi)es suess all in e)er* field of
life
6 E=e#utive su))ary
! am doing m* internshi& in famous and re&uted %an of Paistan the name of that %an
is National Ban of Paistan the re&ort is %ased on m* si; /ees internshi& &rogram in
National Ban of Paistan Aording to m* o%ser)ation during internshi& the NBP
maintains an e;ellent &osition in %aning setors in Paistan and this is %ased on the
o)er all &erformane of National Ban of Paistan 5his re&ort ontains the detail of NBP
and the de&artments /here ! /ored during internshi& and these de&artments inludes
Aount &ening #e&artment> Bill Colletion #e&artment> Cash #e&artment> Credit
#e&artment and 3emittane #e&artment
!t also inludes the 3atio Anal*sis and these ratios inlude all ratios that m* uni)ersit*
required /ith om&lete formula> /oring> ta%le> gra&h and inter&retation
! also mention m* /or e;&eriene during internshi& in different setors ! also disuss in
m* re&ort the e;euti)e summar* of NBP and 3eommendations for !m&ro)ement and
the soures that ! used to mae this re&ort ! ha)e learned and informed a%out different
=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 7/70
as&ets s&eiall* a%out %aning setor> it?s m* 1st /oring e;&eriene so it /ill hel& me
/hile ! /ill %e &rofessional
NBP has 124 nation/ide and almost 2 %ranhes o&erating in other foreign ountries
inluding ("A> China> <rane> .ong @ong> Azer%aian> Bangladesh> and .ong @ong
5he o%eti)e of this !nternshi& /as to e;&lore the issues relating to <inane and to find
out &ro%lems regarding the theoretial one&ts /ith &ratial e;&eriene /oring in an
organization during the internshi& and stud* the s*stem of National Ban of Paistan
Aording to m* no/ledge there is muh &ossi%le &erfetions> /hih /e an mae
&ositi)e hanges in the s*stem of NBP in oming *ears
!n this m* NBP re&ort ! also tal a%out the /a* of in)estment> rates of in)estment> all
t*&es of finaning and loans ser)ies the National Ban of Paistan &ro)ides 5he
&ro%lems of %ranh /here ! am doing internshi& <$10 maraz %ranh are also disussed
> a3le of #ontent
esson No itle ? opi# Page No
1 itle page 1
a Na)e of the organi4ation 1
3 Na)e of the Internee7 Stu&ent I+ an& session 1
# Su3)ission &ate of the internship report 1
& Na)e of the University 1
e VU logo 1
2 etter of Un&ertaking 2
( S#anne& #opy of the internship (
5 +e&i#ation 5
< #kno,le&ge)ent <
6 E=e#utive su))ary 6
> a3le of #ontents@ /rief intro&u#tion of the organi4ation*s 3usiness
se#tor
.10
8vervie, of the organi4ation 11.21
a /rief history 11.1(
3 8rgani4ational 'ierar#hy #hart 15.1<
# /usiness volu)e "otal nu)3er of sto#k7 shares7 3on&s?
#o))o&ities7 future #ontra#ts planne& for a parti#ular
16
'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 8/70
perio& et#$
& Pro&u#t lines "ist #o)plete range of pro&u#ts? servi#es of
the organi4ation$
1>
e %o)petitors 1@
f /rief Intro&u#tion of all the &epart)ents 1.20
g %o))ents on the organi4ational stru#ture 2110 Plan of your internship progra) 22
a 3rief intro&u#tion of the 3ran#h ,here you &i& your
internship
1>
3 Starting an& en&ing &ates of your internship 1>
# Na)es of the &epart)ents in ,hi#h you got training an&
the &uration of your
raining
1>
11 raining progra) 2(
1st ##ount 8pening +epart)ent 2(
2
n&
/ill %olle#tion +epart)ent 2<(r& %ash +epart)ent 26
5th %re&it +epart)ent 2>
<th Re)ittan#e +epart)ent 2@
12 Ratio nalysis 2
a$ iAui&ity Ratios
iAui&ity ratios )easure a fir)*s a3ility to )eet its
#urrent o3ligations
2
%urrent Ratio 2
#i& est Ratio (1
Borking #apital ((
3$ everage Ratios
everage ratios )easure the &egree of prote#tion of
suppliers of long ter) fun&s
(<
i)es Interest Earne& (<
+e3t Ratio (>
+e3t ? EAuity Ratio (@
+e3t to angi3le Net ,orth Ratio 50
otal %apitali4ation Ratio 51
#$ Profita3ility Ratios
Profita3ility ratios )easure the earning a3ility of a
fir)
5(
Net Profit ;argin 5(
Return on ssets 5<
+uPont Return on ssets 5>
8perating In#o)e ;argin 5
8
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 9/70
Return on 8perating ssets <0
Return on otal EAuity <2
Cross Profit ;argin <5
&$ #tivity Ratios
#tivity ratios )easure a fir)Ds a3ility to #onvert&ifferent a##ounts ,ithin their 3alan#e sheets into #ash
or sales
<<
otal ssets urnover <6
Fi=e& ssets urnover <>
e$ ;arket Ratios
;arket ratios are #o))only use& 3y the investors to
assess the perfor)an#e of a 3usiness as an invest)ent
an& also the #ost of issuing sto#k
<
+ivi&en& per share <
Earning per Share 61
Pri#e?Earning Ratio 6(
1( Future Prospe#ts of the 8rgani4ation 6<
15 %on#lusion 66.6>
1< Re#o))en&ations for I)prove)ent 6@.>0
16 Referen#e - Sour#es use& >1
1> nne=es >1
@ /rief intro&u#tion of the organi4ation*s 3usiness se#tor
Am doing m* internshi& in NBP f$10 %ranh maraz !slama%ad no/ ! /ill disuss the
%rief introdution of national Ban of Paistan in %usiness setor
5he national %an of Paistan /as esta%lished in 9 th No)em%er 1949 under the ordinane
! 5he NBP ommened its o&erations from 20th No)em%er 1949 5he Ban /as
inor&orated under the National Ban of Paistan rdinane 1949 and is listed there
Paistani sto e;hanges 5he %an ontrols treasur* dealings for the o)ernment of
Paistan as a re&resentati)e to the "tate Ban of Paistan NBP offers a ommerial
%aning and interrelated ser)ies in Paistan as /ell as out side of Paistan 5he %usiness
setor of NBP is %aning setor and the %ans &la*s a )ital role in an eonom* of ountr*
NBP also &la*ed an im&ortant role NBP also &ro)ide %aning or finanial ser)ies in
9
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 10/70
Paistan %an &la*s a maor &art in eonom* no/ a da*s the urrent eonomis risis in
united stares and uro&e as /ell as Paistan as /e see da* %* da* do/n sizing and is
%eause the ongoing /eaness of maor %an and the result of all this is redit and
a&ital rush so /e an sa* its &ro)e from histor* that the %aning setor is &la*s a )ar*
im&ortant role in national and glo%al eonom*
National %an of Paistan &ro)ides to its ustomers the follo/ing %enefits sa)ing
aounts> home finaning> &ersonal loans> A5M and de%it ards> finaning failit* for
sto in)estors> !nternet %ased home remittane ser)ie> ash against gold> and &ersonal
aident insurane these %enefits is )ar* useful for ustomers
!n %et/een 2002 to 200' the aelerated eonom* gro/th of Paistan /as under&inned
%* a strong %aning setor the %aning industr* assets is a%o)e D=0 its &rofit remain high
and its NP-" are lo/ Paistan is !slami ountr* and the national %an of Paistan offers
is !slami %aning ser)ies these ser)ies inlude de&osit shemes> lie urrent de&osit
sheme and &rofit and loss sharing de&osit sheme and also finaning failities and also
&ro)ided letters of redit failit*> issuane of %an drafts and &a* orders> handling of
remittanes> go)ernment olletions> olletion of e;&ort %ills and loal %ills> and utilit*
%ills olletion ser)ies !t also &ro)ided international %aning trade that &ro)ide ser)ies
om&rise letters of redit> trade finaning> international &a*ments and olletion ser)ies>
strutured trade finane> doument &resentation and &a*ment ser)ies> &reE and &ostE
shi&ment finaning> %anEtoE%an reim%ursements> doumentar* redits> im&ort finane>
shi&&ing guarantees> and ash management solutions NBP is go)ernment %an so
&eo&les trust to NBP is high as om&are other %ans and NBP &ro)ides trustee ser)ies to
national in)estment trust> long$term redit fund> and endo/ment fund for student loans
sheme
10
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 11/70
8vervie, of the organi4ation
a /rief history
'istory! NBP /as esta%lished under the National Ban of Paistan rdinane in
No)em%er 8 1949 in Paistan and /as 100 F go )ernmen t o/ned 5he need for
the esta%lishment ame due to the reason of ne/l* ountr* /ith eonomis risis !n Gul*
1948 to arr* on the res&onsi%ilities of issuing the urren* and most im&ortantl*
ontrolling the flo/ of mone* in side the ountr*
Role! 5he "&eial 3ole of National Ban of Paistan is ou&ies a unique &osition in the
finanial setor of Paistan !t also ats as an agent of the Central Ban /here)er the
"tate Ban does not ha)e its o/n Branh !t also undertaes o)ernment 5reasur*
o&erations
11
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 12/70
8,nership! NBP is 100F o/ned %* the o)ernment of Paistan
/ran#h Net,ork! NBP has an e;tensi)e domesti %ranh net/or of o)er 100 %ranhes
loated all o)er Paistan 5he Ban also has a &resene in 24 international loations
inluding the ("A> (nited @ingdom> uro&e and the <ar ast
+eposits of National 3ank of Pakistan! NBP holds 24=F share of time and demand
de&osits in the ountr* -oal urren* de&osits om&rise ='F of %anHs total de&osits
/hile foreign urren* de&osits aount for the rest
'ea& offi#e an& /ran#hes! .ead offie of national %an is in @arahi /ith their 14,1
%ranhes loal and 24 %ranhes internationall*
Provin#ial 'ea&Auarters! "indh 0=> Baluhistan 02> Puna% 14> NI<P 0> Azad
@ashmir 02> total 29
,ar&e&! National %an of Paistan /as gi)en a/arded of %est %an of the *ear in 2001>
2002> and 2004 %* the %aner a &u%liation of finanial times -ondon !n 200 the
national %an of Paistan is also gi)en %est %an of the *ear %* the %aners %* glo%al
finane magazine National Ban has earned reognition and numerous a/ards
internationall* !t has %een the rei&ient of 5he Ban of the ear 2001> 2002> 2004 and
200 A/ard %* 5he Baner Magazine> the Best <oreign ;hange Ban EE Paistan for
2004> 200> 200= and 200'> lo%al <inane> Best merging Maret Ban from Paistan
for the *ear 200> lo%al <inane> @isan 5ime A/ards E 200 for NBPHs ser)ies in the
agriulture field !t is listed amongst the 3egionHs largest %ans and also amongst the
largest %ans in "outh Asia 200> 5he Asian Baner !t has also %een &resented a
3eognition A/ard EE 2004 for ha)ing a ender "ensiti)e Management %* IBCP
AA".A %esides other a/ards
Pre#ise Su))ary of National /ank of Pakistan year 3y year
5he &reise summar* of National Ban of Paistan regarding its ountr*/ide and
o)erseas o&erations is as fallo/s:
!n the *ear 1949 National Ban of Paistan /as esta%lished under the National Ban
of Paistan rdinane 1949 and /as 100F go)t$o/ned
!n the *ear 190 NBP esta%lished a %ranh in Geddah> "audi Ara%ia
5he Ban in 190 had one su%sidiar* J5he Ban of Baha/al&ur? on #eem%er4>
12
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 13/70
!n the *ear 194' %* the former Baha/al&ur "tate
!n the *ear 19 B* this time NBP had %ranhes in -ondon and Calutta
!n the *ear 19' NBP esta%lished a %ranh in Baghdad> !raq
!n the *ear 19=2 NBP esta%lished a %ranh in #ar$es$"alaam> 5angan*ia
!n the *ear 19=4 5he !raqi go)ernment nationalized NBPHs Baghdad %ranh
!n the *ear 19= 5he !ndian go)ernment seized the Calutta %ranh on the out%rea of
hostilities %et/een !ndia and Paistan
!n the *ear 19=' 5he 5anzanian go)ernment nationalized the #ar$s$"alaam %ranh
!n the *ear 19'1 NBP aquired Ban of ChinaHs t/o %ranhes> one in @arahi and one
at Chittagong At se&aration of ast Paistan NBP lost its %ranhes there NBP
merged /ith astern Merantile Ban and /ith astern Ban Cor&oration
!n the *ear 19'4 the go)ernment of Paistan nationalized NBP As &art of the
onomitant onsolidation of the %aning setor> NBP aquired Ban of Baha/al&ur
7est 194'
!n the *ear 19'' NBP o&ened an offshore %rain Cairo
!n the *ear 1994 NBP amalgamated Mehran Ban 7est 1991
!n the *ear 199' NBPHs %ranh in Ashga%at> 5urmenistan ommened o&erations
!n the *ear 2000 NBP o&ened a re&resentati)e offie in Almat*> @azahstan
!n the *ear 2001 "tate Ban of Paistan and Ban of ngland agree to allo/ onl* 2
Paistani %ans to o&erate in the (@ NBP and (nited Ban agreed to merge their
o&erations to form Paistan !nternational Ban> of /hih NBP /ould o/n 4F and
(nited Ban F
!n the *ear 200, NBP reei)ed &ermission to o&en a %ranh in Afghanistan
!n the *ear 200 NBP losed its offshore %ranh in Cairo /hih o&ened in 19''
1,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 14/70
3 8rgani4ational 'ierar#hy #hart
"*ed Ali 3aza Chairman NBP Board of #iretors
Kamar .ussain President NBP
14
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 15/70
M3 5ariq @irmni #iretor
Mrs .ani*a "hahid Naseem #iretor
Ms Nazrat Bsahir #iretor
Mr hlaq Ahmed "eretar* Board of #iretors
8rgani4ational 'ierar#hy %hart at N/P 'ea& 8ffi#e ara#hi
8rgani4ation %hart of N/P
1
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 16/70
# /usiness volu)e
1=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 17/70
In ;illions
+es#ription 2006 200> 200@ 200 2010
Profit
3efore ta=
2=>,11 28>0=1 2,>001 21>,00 2>4>41
Profit after
ta=
1'>022 19>0,4 1>49 1'>=2 1'>=,
Sharehol&er
*s eAuity
,,>04 =9>2'1 81>,=' 94>142 10,>'=2
&van#es
net
,1=>110 ,40>,19 412>98' 4'>24, 4''>0'
otal ssets =,>1,, '=2>194 81'>'8 944>8, 1>0,>02
+eposits 01>='2 91>90' =24>9,9 '2'>4= 8,2>12
Invest)ents 1,9>94' 211>14= 1'0>822 21'>=4, ,01>,24
Earnings
per share
12= 141 1149 1,0 1,0
& Pro&u#t lines
5he &rodut lines is gi)en %elo/
• P3M!(M AM#AN!
• P3M!(M "A+3
• "A!BAAN• A#+ANC "A-A3
• CA". CA3#
• !N+"53 A#+AN5A
• CA". AN# -#
• @!"AN 5AKA5
• @!"AN #"5
1'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 18/70
• PA@ 3M!5
• P35C5!N ".!-#
Servi#es
• !slami Baning
• "tudent -oan "heme
• #emand #rafts7##
• quit* !n)estment
• Commerial <inane
• 5rade <inane
• !nternational <inane
• .ome <inane
• <oreign Curren* Aount
• "hort 5erm !n)estment
• N!#A7 National !nome #ail* Aount
• <oreign remittane
• 5ra)elers Cheques
• "/ift "*stem
• -etter of Credit
• Pa* rder 7P
• Mail 5ransfer 7M5
e %o)petitors
No/ a da* in this /orld of om&etition the NBP is faing muh om&etition 5he
om&etitors list of NBP is )er* large as there are man* &ri)ate and ommerial %ans
o&erating in the ountr* Com&etitors of the NBP /hih are gi)en %elo/
• MCB Ban -imited
• .a%i% Ban -imited
• .a%i% Metro&olitan Ban -imited
18
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 19/70
• "audi Pa Ban -imited
• Atlas Ban -imited
• "!-@BAN@ -imited
• (nited Ban -imited
• Allied Ban -imited
• Asari Commerial Ban -imited
• Ban Al$.a%i% -imited
• Ban Al$<alah -imited
• "tandard Chartered Ban -imited
• <irst Iomen Ban
• 5he Ban of @h*%er
• Ban of Puna%
• <a*sal Ban -imited
• Atlas Ban -imited
•
Ban Alfalah -imited• "oneri Ban -imited
• Asari Ban -imited
f /rief Intro&u#tion of all the &epart)ents
5here are man* de&artments of National Ban of Paistan ! /ill /rite the follo/ing main
de&artments of National Ban of Paistan <$10 Maraz %ranh and /here ! got training
as internee are gi)en %elo/:
1st Aount &ening #e&artment
2nd Bill Colletion #e&artment
,rd Cash #e&artment
4th Credit #e&artment
19
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 20/70
th 3emittane #e&artment
! alread* desri%e in detail of these entire de&artment in m* internshi& re&ort ne %* one
! /ill summarize or o)er )ie/ all these again
1st ##ount 8pening +epart)ent!
!n m* 1st 2 /ees of internshi& ! /or as an internee in aount o&ening de&artment in
NBP !t?s a maor de&artment of NBP the %asi &ur&ose of Aount &ening #e&artment
the relationshi& %et/een %aner$ustomer Aount o&ening de&artment &erforms the
dut* of o&ening aounts and issues he%oos to lients A &erson /ho requests to
o&en an aount /ith the %an has to fill an aount o&ening form o%tained from an*
%ranh of National Ban of Paistan
ypes of a##ounts that are opene&
! learned in m* training in aount o&ening de&artment the follo/ing aount is o&ened
1 PS ##ount or PS Saving ##ount
2 %urrent ##ount
( Fi=e& +eposit ##ount
2n& /ill %olle#tion +epart)ent!
! also /or in the %ill olletion de&artment in NBP during m* internshi& 5he %asi
&ur&ose of %ill olletion de&artment is olleted utilit* %ills from ustomers that he &a*s
at end of e)er* month
5hese %ills inlude
Iater %ills
as %ills
letriit* %ills
5ele&hone %ills
(r& %ash +epart)ent!
! also /or in ash de&artments during internshi& in NBP Cash de&art in )ar* sensiti)ede&artment o e)er* %an as /ell as National Ban of Paistan No %od* is allo/ed freel*
lie other de&artment this de&artment all de&end on ash a seurit* guard is also standing
for safe from theft and also sensiti)e de&artment some times ustomer &a*s frauds are
made in this de&artment so e;tra are needed in this de&artment
5th %re&it +epart)ent!
20
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 21/70
!n m* internshi& &rogram in NBP ! also /or in redit de&artment 5he %asi &ur&ose of
this de&artment id to ollet s&are> e;tra or sur&lus mone* or urren* from &eo&les or
ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this mone* at high rates to get
more and more &rofit No/ a da*s NBP gi)es a )ar* lo/ amount to ustomer %eause in
Paistan there is insta%ilit* and da* %* da* the in)estor go out from Paistan %eause of
in seurit* finanial rises is also %ig ause of it so the loan ratio is )ar* lo/ do/n da* %*
da* /ith the &assage of time
<th Re)ittan#e +epart)ent!
<inall* in m* last /ee of internshi& as an internee in NBP ! /or in 3emittane
#e&artment 5he remittane de&artment transfers the mone* from domesti to
international le)el Aording to m* learning there are t/o ategories of remittane
de&artment 1st one is domesti or loal remittane de&artment and the 2nd one is foreign
remittane de&artment !n loal remittane the transfer mone* /ith in national or
domesti %oundaries and in foreign transfer mone* out side from national or international
%oundaries !n m* internshi& &rogram the manager told me the main funtions of
3emittane #e&artment these main or im&ortant funtions taes &laes in the follo/ing
/a*s ! o%ser)ed these are Closing and srolling of go)ernment olletions> issuing of
&a*ment order> issuing of demand draft> issuing of all de&osit> issuing of Mail transfer
and issuing of all de&osit!n NBP remittane taes &laes in the follo/ing /a*s 5hese /a*s are gi)en %elo/
1st elegraphi# ? ;ail ransfers an& its easy an& fastest ,ay
2n& one is +e)an& +raft ? Pay 8r&ers
g %o))ents on the organi4ational stru#ture
! understand during m* internshi& &rogram the rganizational "truture NBP is
entralized %ut need some hanges /ith the &assage of time %eause in this /orld da* %*
da* tehnolog* hanges and its neessar* to hange the rganizational "truture time %*
time and ! also o%ser)ed the NBP is the oldest %an of in Paistan and in last =2 *ears a
lot of hanges in NBP rganizational "truture %ut ! o%ser)ed the rganizational
21
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 22/70
"truture is not &rofessionall* de)elo&ed and im&lemented !n NBP <$10 Maraz Branh
/here ! /or as internee in that de&artment all em&lo*ees in different de&artment /or
&ro&erl* and here rganizational "truture %ut also need some hanges
10 Plan of ;y internship progra)
Intro&u#tion of 3ran#h
Name of %ranh: National Ban of Paistan <$10 Maraz Branh
Cit*: !slama%ad
Branh Code: 19,,
Branh manager: Miss Asia Aslam
&erating manager: Mr Ali
Phone Num%er: L92$01$9218',4
22
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 23/70
! did m* internshi& or training from National %an of Paistan <$104 Maraz !slama%ad
and %ranh ode is 19,,(nder the %ranh manager Miss Asia Aslam !n this %ranh of
national %an the %ranh manager is Miss Asia Aslam and Mr Ali is o&erating manager
%oth are su&erior /oring and )er* fair /ith their o% Ihen ! start m* internshi& ! fae
man* diffiulties %eause its m* 1st e;&eriene to do training or internshi& in an* /here
so ! don?t ha)e e;&eriene &ratial /or %efore %ut here oo&erati)e management
s&eiall* miss Asia Aslam Branh manager hel& me for m* this 1st to om&lete m* tass
effiientl* and ! o%ser)ed the other management mem%ers or staff is also )ar*
oo&erati)e /ho also hel& me in a friendl* manners !n start am little %it onfuse %ut after
the o%ser)ed the oo&eration of staff ! eno* m* internshi& ! also a&&reiate and thans
all management /ho hel& me to om&lete m* tass in good manners
+uration of ;y training or Internship Progra)
5he starting date of m* !nternshi& Program is ;ay 7 2011
5he ending date of m* !nternshi& Program is Gune 227 2011
Na)e of the +epart)ent in ,hi#h I ,orke& in )y internship
Na)e of the +epart)ent +uration
Aount &ening #e&artment 2 BeeksBill Colletion #e&artment 1 Beek
Cash #e&artment 1 Beek
3emittane #e&artment 1 Beek
11 raining progra)
M* training or internshi& &rogram from National Ban of Paistan <$10 Maraz Branh
!slama%ad ! also mention the de&artments /here ! /or as internee that is gi)en %elo/
1st ##ount 8pening +epart)ent
2n& /ill %olle#tion +epart)ent
(r& %ash +epart)ent
5th %re&it +epart)ent
2,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 24/70
<th Re)ittan#e +epart)ent
ne B* one ! /ill desri%e in detail of all m* training &rogram de&artments
1st ##ount 8pening +epart)ent
5he aount o&ening de&artment is a first de&artment /here ! learned and s&ent m*
internshi& ma;imum &eriods 2 /ees as om&ares to other de&artments !n m* )ar* 1 st
da* ! am little %it onfused to start and learned a%out de&artment %eause its m* 1 st
e;&eriene &ratiall* %ut the oo&erati)e staff and %ranh manager hel& me to
understand all &roedure no/ ! o%ser)ed ho/ the em&lo*ee /or in this de&artment and
/hat is the requirements to o&en the aount and /hat is the rules and &roedure to
follo/ the ustomer !n this de&artment requires some %asi requirements for o&en an
aount of ustomer the ustomer must ha)e the referene of an* residene of Paistan
/ho has alread* aount holder of National Ban of Paistan and /hen ustomer gi)es
referene of some ones /ho has aount in NBP the %an onfirms it /ith NA#3A
After , or 4 da*s ! learned man* things a%out o&ening aount and rules and &roedures
and also the requirements lie /hat is the title of aount> address of the ustomer> reent
!# ard num%er> National ta; num%er> P5C- and Mo%ile num%er amount de&osit>
signature> -a/ must qualif* the ustomer> Age of maorit* and must %e of sound mind
5han ! learned and o&ened a aount of ustomer under su&er)ision of staff and these
&roedure must %e follo/ed the ustomer ome to %an and meet the manager a%out
aount o&ening &roedure than manager guide him or her a%out the aount he or she
/ants to o&en in the %an than manager guide me and ! follo/ the rules no/ gi)e to
ustomer aount o&ening form along /ith doument lie signature ard and Pa*$in$sli&
5han the ustomer fill the aount o&ening from if he has an* diffiult* than management
or aount o&ening offier guide him or her and /hen ustomer fill are form this form
sent to manager for a&&ro)al than the onerned offier gi)es ne/ aount num%er and
guide to de&osit initial de&osit in ash ounter And he %oo gi)es to ustomer
aording to ustomer need or requirement %eause some he %oos has 2> 0 and
more it?s de&end on ustomer requirement Ihen ! o&ened some aounts than ! no/
24
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 25/70
the &roedure and after this it?s )ar* eas* for me %eause ! no/ no/ all &roedures to
o&en a aounts and ! o&ened some aounts
ypes of a##ounts that are opene&
! learned in m* training in aount o&ening de&artment the follo/ing aount is o&ened
1 PS ##ount or PS Saving ##ount
2 %urrent ##ount
( Fi=e& +eposit ##ount
5he details of these aounts are gi)en %elo/ one %* one
1 PS ##ount or PS Saving ##ount
1st ! /ould lie to disuss the P-" aount or P-" sa)ing aount that ! learned from
manager it is interest free aount mostl* the lo/er or middle inome le)el or small
%usiness man> Allam or Moulana or &eo&le /ho don?t lie interest lie usuall* mae suh
de&osit in this aount the transation !n this aount the transation is not e)er* da* or
dail* <unds an normall* de&osited through &a* order> ash> he et
2 %urrent ##ount
2nd ! lie to disuss the urrent aount that ! learned from manager this aount or
urrent aount it?s de&end on dail* %ases normall* through heque> A5M> Pa* order et
dra/n on the %an and these de&osit stand the urrent lia%ilit* of the %an 5he %an ee&
fund of his hand and ustomer normall* use this aount mostl* no/ a da*s through
A5M %eause its )ar* eas* and ad)aned method And there is no limit for de&osit
( Fi=e& +eposit ##ount
,rd ! /ould lie to disuss the fi;ed de&osit aount ! learned from manager that this
aount normall* o&ened and high fault* or e;tra ordinar* &eo&le or %usiness man for a
long &eriod of time and this t*&e of aount is less use as om&are to other aount !n
this aount the ustomer in)est in different setor for a long &eriod of time /here his or
2
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 26/70
her mone* is sa)ed from theft and also /ith higher return 5he other aount ! o&ened
%eause these are dail* use aounts and normal or middle lass &eo&les use %ut this fi;es
aount ! don?t o&ened %eause in m* in m* &eriod of internshi& there in onl* 1 or 2
&eo&les /ho o&ened this aount ! learned %ut not aurate so ! got more information
from the manager of the %an
2n& /ill %olle#tion +epart)ent
!n m* internshi& &rogram ! also /ored in Bill Colletion de&artment in one /ee
!n 1st da* in %ill olletion de&artment 1 get information from manager a%out the
funtion> rules and &roedure in)ol)e in %ill olletion de&artment after get information
from manager ! see or o%ser)ed %ill olletion de&artment ollets different utilit* %ills
/hih &eo&les &a* e)er* months
5hese %ills inlude
Bater 3ills
Cas 3ills
Ele#tri#ity 3ills
elephone 3ills
! ollet some %ills aording to instrution that manager gi)es me a%out %ill olletion
de&artment and in %ill olletion de&artment m* dut* is /hen ollet %ill is must see the
due date and /hat?s the amount ollet in due date and these are /ritten in e)er* %ill and
after date %eause after date e;tra amount &aid or late &a*ment harges &aid %* the
ustomer if %ill not &aid /ithin due date Also mention in %ill manuall* if ustomer gi)es
%ig note lie note of 3" 000 and %ill id 100 than in %ill /ritten manuall* 000$100
,90 it means ustomer gi)e 000 note and %ill amount is 100 /e dedut from 000 and
/e gi)es ,90 the remaining amount to ustomer 5he amount reei)ed lie in due date
amount reei)ed irle the reei)ed amount /ithin due date and if &a*ment id after due
date irle after date and in after date late &a*ment harges inluded and irle and
ollet mone* and than %an stam& and also sigh on it is its guarantee that this means f$
10 maraz !slama%ad %ranh reei)ed this %ill 5he %an also harges ommission in
eah %ill that is re)enue of the %an and also for go)ernment of Paistan At the end of
2=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 27/70
the da* all amount ounts ount that reei)ed from from reei)ed against %ill olletion
from ustomers and gi)es %* the rele)ant %ill olletion de&artment and %ill olletion
de&artment sends mail to the head offie
(r& %ash +epart)ent
!n duration of m* internshi& in NBP as internee ! /or in ash de&artment fro 1 /ee !n
ash de&artment 1st ! tr* to understand /oring &roedure in this de&artment ! also
o%ser)ed that ash de&artment is the most im&ortant setion in the %an Cash de&artment
&erform the funtion of %an &a*ment and reei&t> go)ernment reei&t and &a*ment and
olletion of utilit* %ills
5he ash de&artment is )ar* im&ortant and sensiti)e %eause in this de&artment no %od*
is allo/ed freel* lie other de&artment this de&artment all de&end on ash a seurit*
guard is also standing for safe from theft and also sensiti)e de&artment some times
ustomer &a*s frauds are made in this de&artment so e;tra are needed in this
de&artment
And if losing the %alane is not math than the ashier must math it %efore
lea)e this de&artment some times hours taes to math ash in this
de&artment if ash not math than ashier &a* /ith its o/n &a* or /ith o/n
reourses"o ash de&artment is )ar* sensit i)e de&artment mostl* &eo&le ome for the
&ur&ose of ash in this de&artment /ith dra/n and de&osit if an* aount holder omes to
dra/ the amount it must % heed the total amount on heque> date> signature of the
aount holder> and then he gets &a*ment form the ash ounter from the ashier and
some aount holder omes for the &ur&ose of de&osit the mone* in ash de&artment
5th %re&it +epart)ent
As an internee ! /or and o%ser)ed in redit de&artment for the duration of 1 /ee in
National Ban of Paistan <$10 Maraz Branh !slama%ad
5he %asi &ur&ose of this de&artment id to ollet s&are> e;tra or sur&lus mone* or
urren* from &eo&les or ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this
mone* at high rates to get more and more &rofit
2'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 28/70
Aording to m* o%ser)ation and /or as internee in NBP during m* internshi& !
o%ser)e that the %asi &ur&ose of redit de&artment is &ro)ide load to load seeers
5hese &eo&les get loan from %an and fulfill our requirements and %an harges interest
against ! also o%ser)e no/ a da*s of tehnolog* e)er* %an ado&t this method to get
&rofit ! o%ser)ed /hen national %an of Paistan <$10 %ranh !slama%ad /hen NBP
&ro)ide or gi)es to some one some %asi information ollet %* the %an to redue fraud
%eause no/ a da*s some fraud &eo&les gets illegall* loan from %an and ant return to
%an some fraud &eo&les /rite /rong address and some are going out side of ountr* and
that?s a %ig loss of %an so %an no/ a da*s %an onfirm it /ith the ustomers near
&olie station a%out the re&utation of ustomer and NBP required some %asi information
and riteria %efore gi)es loan to &eo&les some %asi information that %ans gets lie
ustomer name> National !dentit* Card> 5he required douments heed is it in original
from or not
No/ a da*s NBP gi)es a )ar* lo/ amount to ustomer %eause in Paistan there is
insta%ilit* and da* %* da* the in)estor go out from Paistan %eause of in seurit*
finanial rises is also %ig ause of it so the loan ratio is )ar* lo/ do/n da* %* da* /ith
the &assage of time
<th Re)ittan#e +epart)ent
!n m* internshi& &rogram and also last /ee of m* internshi& ! also /ored in
3emittane de&artment in one /ee ! o%ser)ed or learned that main &ur&ose of
3emittane de&artment is to mo)e mone* from one &lae to another &lae 5he
remittane de&artment transfers the mone* from domesti to international le)el
Aording to m* learning there are t/o ategories of remittane de&artment 1 st one is
domesti or loal remittane de&artment and the 2nd one is foreign remittane de&artment
!n loal remittane the transfer mone* /ith in national or domesti %oundaries and in
foreign transfer mone* out side from national or international %oundaries !n m*
28
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 29/70
internshi& &rogram the manager told me the main funtions of 3emittane #e&artment
these main or im&ortant funtions taes &laes in the follo/ing /a*s ! o%ser)ed these are
Closing and srolling of go)ernment olletions> issuing of &a*ment order> issuing of
demand draft> issuing of all de&osit> issuing of Mail transfer and issuing of all de&osit
Ihen ! /or in this de&artment ! also o%ser)ed the im&ortant &artiulars of demand draft
filled> Name of the %ranh on /hih draft is dra/n> Address of the a&&liant> signature of
the a&&liant> e;hange rates of the %an> 5otal amount in figure and also in /ords> name
of the &erson /ho reei)e the mone* (nder the su&er)ision manager ! fill some demand
draft that gi)es me some useful information a%out this de&artment and ! also /ant to get
more and more information a%out this de&artment and manager hel& me a lot
!n NBP remittane taes &laes in the follo/ing /a*s 5hese /a*s are gi)en %elo/
1st 5elegra&hi Mail 5ransfers and its eas* and fastest /a* and 2 nd one is #emand
#raft Pa* rders
Ban is res&onsi%le for remittane from one %an to another %an in ase
5his is m* last /ee on internshi& in national %an of Paistan and /ord in remittane
de&artment ! /or hard also oo&erati)e staff and manager reall* hel& me for this am
thanful to all management and staff of National Ban of Paistan <$10 %ranh and also
thanful fro %an %ranh manager Miss Asia Aslam she hel& me lot in m* all !nternshi&
12 Ratio nalysis
a$ iAui&ity Ratios
iAui&ity ratios )easure a fir)*s a3ility to )eet its #urrent o3ligations
hese in#lu&e!
H %urrent Ratio
29
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 30/70
H #i& est Ratio
H Borking #apital
Na)e of the ratio
• %urrent ratio
F8R;U 8F %URREN RI8
he for)ula of #urrent ratio is given 3elo,
Bith the help of for)ula ,e #al#ulate or fin& #urrent ratio
%urrent Ratio %urrent ssets ? %urrent ia3ilities
!t means /e add all urrent assets after add all urrent assets /e add all urrent
lia%ilities and than di)ide urrent ratio /ith urrent lia%ilities
As /e sho/n in gi)en %elo/
Sho, in ta3le
A3" 200@ 200 2010Current assets 84>9''>140 =4>0=4>1= =9,>4=,>980
Current lia%ilities =82>90>4=1 '2>29,>'20 8='>=2=>,='
%urrent Ratio 0@6 ! 1 0@ ! 1 0@0 ! 1
Borking!
Bhi#h short ter) a&van#es an& invest)entsJ
8nly fi=e& &eposits ,ill not 3e #onsi&ere& h ere
'el& for tra&ing an& availa3le for sale ,ill 3e #onsi&ere& as #urrent
,0
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 31/70
%urrent asset Cash and %alanes /ith treasur* %ans K Balanes
/ith other %ans K -ending to finanial institution$net K short term
!n)estment L "hort term Ad)anes L ther asset 7nl* "hort 5erm
After adding all urrent assets aording to gi)en format the
urrent assets of 2008 84>9''>140 and 2009 =4>0=4>1= and 2010
=9,>4=,>980
%urrent lia3ility Bills &a*a%le L "hort 5erm Borro/ing L "hort
5erm #e&osit and other aount L short term lia%ilities against
assets su%ets to finane lease L other lia%ilit*7nl* short term
After adding all urrent -ia%ilities aording to gi)en format the
Current -ia%ilities of 2008 =82>90>4=1 and 2009 '2>29,>'20 and
2010 8='>=2=>,='
<inall* di)ide urrent assets /ith urrent lia%ilities ans/er is urrent ratio
• Craphi#al Presentation of %urrent ratio
,1
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 32/70
0.86
0.89
0.8
0.75 0.8 0.85 0.9
2008
2009
2010
Current Ratio
Interpretation
5he urrent ratio sho/s in 2008 the urrent ratio of national %an of Paistan
is 08 it means the urrent assets inreases not muh as om&are to urrent
lia%ilities and in 2009 sho/s the inrasing trends as om&are to 2008 the
urrent ratio of 2009 is 088 %ut again in 2010 it sho/s 0'9 that is muh
less as om&ared to 2008 and 2009
Na)e of the ratio
H #i& est Ratio
Bith the help of for)ula ,e #al#ulate or fin& Acid Test Ratio
For)ula is given 3elo,
#i& est Ratio ;ore liAui& ssets?#urrent lia3ilities
,2
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 33/70
It )eans )ore liAui& ssets ? %urrent lia3ilities
Sho, in ta3le
A3" 200@ 200 2010
More liquid Assets 82>2>8'1 =,0>040>=28 =91>1=0>4',Current -ia%ilities =82>90>4=1 '2>29,>'20 8='>=2=>,='
#i& test Ratio 0@< !1 0@> !1 0@0 !1
Borking!
;ore liAui& ssets Cash and %alanes /ith treasur* %ans K Balanes /ith
other %ans K -ending to finanial institution$net K short term
!n)estmentLshor t term Ad)anes L the r asse t7short term $ad)ane7de&osits>
rent and other &re&a*ments
%urrent lia3ility Bills &a*a%le L "hort term Borro/ing L "hort term
#e&osit and other aountLshort term lia%ilitiesagainst assets su%ets to
finane lease L other lia%ilit*7short term
Craphi#al Presentation of #i& est Ratio
0.85
0.87
0.8
0.76 0.78 0.8 0.82 0.84 0.86 0.88
2008
2009
2010
Acid Test Rat
Interpretation!
,,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 34/70
As /e see the more liquid Assets are less than urrent lia%ilities in all three *ears 2008>
2009 and 2010 %ut in *ear As /e see in gra&h the Aid 5est 3atio of 2009 is higher
as om&are to 2008 and 2010 and /e alulate Aid 5est 3atio find al l %* su%trat al l
&re&aid e;&enses from urrent ass et s to find it
Na)e of the ratio
H Borking #apital
5o find out /oring a&ital ratio /e use the follo/ing formula that is gi)en %elo/
Bith the help of for)ula ,e #al#ulate or fin& Working Capital
For)ula! Borking %apital ratio %urrent ssets . %urrent ia3ility
Sho, in ta3le
;ake #orre#tiosn as instru#te& a3ove
A3" 200@ 200 2010Current assets 84>9''>140 =4>0=4>1= =9,>4=,>98,
Current lia%ilities =82>90>4=1 '2>29,>'20 8='>=2=>,='
Borking #apital .>72@7(21 .@07227<<< .1>571627(@5
Borking
%urrent sset Cash and %alanes /ith treasur* %ans K Balanes
/ith other %ans K -ending to finanial institution$net K "hort
term !n)estment L short term Ad)anes L ther asset7short term
%urrent lia3ility Bills &a*a%leL "hort term Borro/ing L "hort
term #e&osit and other aount L "hort term lia%ilities against
assets su%ets to finane lease L other lia%ilit*7"hort term
Craphi#al Presentation of Borking #apital
,4
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 35/70
-97,928,321
-80,229,555
-174,162,384
-200,00
0,000
-150,00
0,000
-100,00
0,000
-50,000,
000
0
2008
2009
2010Workin Ca!ita"
ratio
Borking!
%urrent asset Cash and %alanes /ith treasur* %ans K Balanes /ith other
%ans K -ending to finanial institution$net K short term !n)estment L "hort
term Ad)anes L ther asset7"hort term
%urrent lia3ility Bills &a*a%le L "hort term Borro/ing L "hort term #e&osit
and other aount L "hort term lia%ilities against Assets su%ets to finane
lease L ther lia%ilit*7"hort term
Interpretation!
Ie see in all three *ears 2008> 2009 and 2010 this an sho/ the negati)e
trend /hih is the %ad sign for the om&an* !t due to the inreasing of
urrent lia%ilities or the e;ess of lia%ilities o)er urrent assets !n 2010
negati)e sigh in to muh high as om&are to 2008 and 2009 so its )ar* %adfor om&an*
,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 36/70
3$ everage Ratios
everage ratios )easure the &egree of prote#tion of suppliers of long
ter) fun&s
hese in#lu&e!
H i)es Interest Earne&
H +e3t Ratio
H +e3t ? EAuity Ratio
H +e3t to angi3le Net ,orth Ratio
H otal %apitali4ation Ratio
Na)e of the ratio
H i)es Interest Earne&
5o find out 5imes !nterest arned /e use the follo/ing formula that is gi)en %elo/
Bith the help of for)ula ,e #al#ulate or fin& i)es Interest Earne&
For)ula! i)es Interest Earne&! E/I ? Interest E=penses
E/I Profit 3efore ta=ation K ;arkup Interest E=penses ? Interest E=penses
Sho, in ta3le
9ears 200@ 200 2010
E/I 4=>88>'== =1>'89>822 =9>==>9
Interest e=penses 2,>884>'=8 40>489>=49 4>20>4'=
otal interest
earne&
E/I?Interest
16 i)es 1<2 i)es 1<( i)es
,=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 37/70
e=penses
Borking!
Profit 3efore a=ation! Mar u& inome EMaru& e;&eness ross &rofit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for the )alue of
!n)estment L Pro)ision against off %alane sheet o%ligations L Bad de%ts
/ritten off Net )ark.up interest in#o)e
Net mar$u& in te re st in o meL <ee ommiss ion O %roerage inomeL
#i)idend inome L;hange inomeL L gain on sale of seuritiesL ther
inome otal non )ark up interest in#o)e
5otal non maru& interest inome$ Administrati)e e;&ense$ther &ro)isions$
ther harges Profit 3efore ta=
Interest e=penses! !nterest e;&enses gi)en in &rofit and loss aount on 2 nd
head as mar u& return interest e;&ense
Craphi#al Presentation of i)es Interest Earne&
1.96
1.52
1.53
0 0.5 1 1.5 2 2.5
2008
2009
2010
Ti#es $nterest %arne
Interpretation!
As /e see in ta%le the 5ime interest ratio is dereasing o)er the time !n 2008
the time interest ratio is 19= %ut in 2008 its derease it /ith 12 5ime
,'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 38/70
in terest an also sho/ the dereasing trend in oming *ear and than inreasing trend in
ne;t *ear lie !n 2009 it little inrease 1, as om&are to 2009
Na)e of the ratio
H +e3t Ratio
For)ula! +e3t Ratio otal lia3ilities ? otal ssets
Its si)ple #al#ulate total lia3ilities of all year than #al#ulate total assets
of all year an& than total lia3ilities &ivi&e 3y total assets than ,e fin&
&e3t ratio
Sho, in ta3le
9ear 200@ 200 2010
5otal lia%ilities '1>299>108 82>='=>,84 90=>28>82
5otal Assets 81'>'8>,2= 944>82>'=2 10,>024>=80
+e3t Ratio 0@>< i)es 0@>5 i)es 0@>6 i)es
Borking
otal +e3ts Bills &a*a%le L Borro/ing L #e&osit and other aounts L "u%$ordinated loans L-ia%ilities against assets su%et to finane lease L #eferd
ta; lia%ilit* L ther lia%ilit*
otal ssets! Cash and %alanes /ith treasur* %ans L Balanes /ith other
%ans L -ending to <inan i al !nsti tu ti on L !n)estment L Ad)anes L
&erating fi;ed asset L #efferd ta; asset L other assets
Craphi#al Presentation of +e3t Ratio
,8
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 39/70
0.875
0.874
0.876
0.873 0.8735 0.874 0.8745 0.875 0.8755 0.876 0.8765
1st &tr
2nd &tr
3rd &tr
'e(t R
Interpretation!
As /e see in ta%le the de%t ratio is not muh inrease or derease it all same
in all three *ears .ere om&an* ha)e more assets then de%t %eause de%t ratio of
greater than 1 indiates that a om&an* has more de%t than assets /hile> a de%t ratio of
less than 1 indiates that a om&an* has more assets than de%t
Na)e of the ratio
H +e3t ? EAuity Ratio
For)ula! +e3t to EAuity Ratio otal lia3ilities "+e3t$ ? Sharehol&er eAuity
Sho, in ta3le
9ear 200@ 200 2010
5otal -ia%ilities '1>299>108 2>='=>,84 90=>28>82
"hareholder quit* 81>49'>48 94>2=>8, 10,>880>048
+e3t to EAuity
Ratio
@>@ ti)es @>6 ti)es @>( ti)es
Borking!
otal &e3ts Bill &a*a%le L Borro/ings L de&osits and other Aount L "u%$ordinate
-oans -ia%ilities against Assets su%ets to finane leaseL #eferred ta; -ia%ilities L
ther lia%ilities
,9
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 40/70
Share hol&er eAuity "hare Ca&ital L 3eser)es L una&&ro&riate &rofit L "ur&lus on
re)aluation of fi;ed assets
Craphi#al Presentation of +e3t ? EAuity Ratio
8.78
8.76
8.73
8.7 8.72 8.74 8.76 8.78 8.8
2008
2009
2010
'e(t to %)uit* R
Interpretation!
As /e see in ta%le the ratio of 2008 sho/s =98 /hih is dereased in 2009 %* =94 %ut in
2010 its again inrease %* '0 !ts sho/ that the om&an* is finanes its assets and
hea)il* relies on de%t finanes
Na)e of ratio!
H +e3t to angi3le Net ,orth Ratio!
For)ula! otal lia3ility?"Net ,orth. Net intangi3le asset$
40
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 41/70
Sho, in ta3le
9ear 200@ 200 2010
5otal -ia%ilities '1>299>108 82>='=>,84 90=>28>82
5angi%le net /orth 102>4,>29, 118>888>848 128>48'>98
+e3t to angi3le
Borth Ratio
6@ i)es 65 i)es >0< i)es
Borking!
otal +e3ts Bill &a*a%le L Borro/ings L #e&osits and other Aount L "u%$ordinate
-oans -ia%ilities against Assets su%ets to finane lease L #eferred ta; -ia%ilities L
ther lia%ilities
Net Iorth 5otal Asset $ 5otal lia%ilit*
!ntangi%le asset 7Mention in notes of %alane sheet 11,
!ntangi%le asset of 2008 is >92> !ntangi%le asset of 2009 1'>,0 and !ntangi%le asset
of 2010 8>2,0
Craphi#al Presentation of +e3t to angi3le Net ,orth Ratio!
6.98
6.94
7.05
6.85 6.9 6.95 7 7.05 7.1
2008
2009
2010
'e(t to Tani("e Wort+ R
Interpretation!5he o)erall sho/ the inreasing trend of the om&an* in 2008 it sho/s the =98 and there
2009 it derease %* =94 and again in 2010 it inrease u& to '0
"o in *ear 2010 it?s greater as om&are to 2008 and 2009 and it?s less in 2009 as om&are
to 2008 and 2010
41
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 42/70
Na)e of ratio
• otal %apitali4ation Ratio!
For)ula! ong ter) &e3t ? ong ter) &e3t K Share hol&er eAuity
Sho, in ta3le
9ear 200@ 200 2010
-ong term de%t ,2>,9,>=4' 100>,82>==4 ,8>902>48=
"hare holder equit*
L long term de%t
11,>'=0>=49 194>24>8, 142>==4>'9=
%apitali4ation
Ratio
02@ i)es 0<1 i)es 02> i)es
Borking!
ong ter) +e3ts -ong term %orro/ing L long term de&osits and other
aounts L "u%$ordinated loans L -ia%ilities against assets su%et to finane
lease L#eferd ta; lia%ilit* L ther lia%ilities7long term
Share hol&er eAuityK long ter) &e3ts "hare a&ital L 3ese)ers L
Luna&&ro&riated &rofit L sur&lus on re)aluation of asset L -ong term
%orro/ing L long ter m de&osi ts and other aounts L "u%$o rdinated loans L
-ia%ilities against assets su%et to finane lease L #efferd ta; lia%ilit* L
other lia%ilities7long term
Craphi#al Presentation of otal %apitali4ation Ratio
42
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 43/70
0.28
0.51
0.27
0 0.2 0.4 0.6
2008
2009
2010Tota" Ca!ita"iatiRatio
Interpretation !
5otal Ca&italization 3atio is high in 2009 as om&are to 2008 and 2010 the o)erall trend
of de%t ontri%ution to/ards finaning sho/s the inreasing trend of the om&an* !n
2008 it sho/s the 2 and there is further inrease 2009 O 2010 so the o)erall trend of
de%t ontri%ution to/ards finaning is high
#$ Profita3ility Ratios
Profita3ility ratios )easure the earning a3ility of a fir)
hese in#lu&e!
H Net Profit ;argin
H Return on ssets
H +uPont Return on ssets
H 8perating In#o)e ;argin
H Return on 8perating ssets
4,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 44/70
H Return on otal EAuity
H Cross Profit ;argin
Na)e of ratio
H Net Profit ;argin
For)ula! Net Profit ;argin Net Profit ?Net SalesL100
Sho, in ta3le
9ear 200@ 200 2010
Net Profit Ma* 1<75<@7<0 1>7<617@56 1>7<6(7215
Net Sales M3* =0>942>'98 ''>94'>=9' @@75>271(5
Net Profit ;argin
ratio! a?3
2<5 22< 1
Borking!
Net &rofit is the &rofit after ta; /hih is o%tained as: Mar u& re)enue Emaru& e;&enses ross &rofit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L
Pro)ision lending to finanial institution L Bad de%ts /ritten off Net
mar$u& inome
Net mar$u& inome L <ee O ommission L #i)idend inome L ;hange
inome L other inome L ain on sale of seurities 5otal inome
5otal inome $ Administrati)e e;&ense $ ther &ro)isions $ ther harges L
"hare of inome Profit %efore ta;
44
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 45/70
Profit %efore ta;$ ta; Profit after ta;
And net sale Mar u& re)enue
Craphi#al Presentation of Net Profit ;argin
25.4
22.5
19.9
0 5 10 15 20 25 30
2008
2009
2010
et ro/it ar
Interpretation!
5he ta%le sho/s that Net Profit margin is sho/ing dereasing trend in 2009>
/hih again dereases in 2010 as om&are to 2008 so NBP has notsignifiant im&ro)ed net &rofit margin in the this *ears in oming *ears after
2008
Na)e of ratio
H Return on ssets
For)ula! Return on asset! "E/I ? otal ssets$L100
Sho, in ta3le
9ear 200@ 200 2010
E/I a* 46,885,766 61,789,822 69,665,595
4
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 46/70
otal ssets M3* 81'>'8>,2= 944>82>'=2 170(<702576@0
Return on sset
Ratio Ma?3*
5.73% 6.54% 6.73%
Borking!
3e)enue E Maru& ;&enses ross Profit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net mar$ u& inome
Net mar$u& inome L <ee O ommission L #i)idend inome L ;hange inome L
other inome L gain on sale of seurities 5otal inome
5otal inome $ Administrati)e e;&ense $ ther &ro)isions $ ther harges L "hare of
inome Profit %efore ta;
E/I Profit 3efore a=ation K Interest e=penses
otal ssets! Cash and %alanes /ith treasur* %ans L Balanes /ith other %ans L
lending to finanial institution L !n)estmentL Ad)anes L ther asset L &erating fi;ed
Asset L #efferd ta; asset$net
Craphi#al Presentation of Return on ssets
5.73
6.54
6.73
5.2 5.4 5.6 5.8 6 6.2 6.4 6.6 6.8 7
2008
2009
2010
Return on Asse
4=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 47/70
Interpretation!
5he ta%le sho/s that the return on assets of 2008 is greater as om&are to 2009 and 2010
so the ratio anal*sis e;&lains that 3eturn on Assets is gro/ing in the *ear 2008> /hih is
281F But after this it inreases from &re)ious le)el and then it reahed at 22=F in
finanial *ear 2009> again it derease to 2,=F in *ear 2010
Na)e of ratio
H +uPont Return on ssets
For)ula! +uPont Return on ssets Net In#o)e?Net sales L Net Sales? total sset
Sho, in ta3le
9ear 200@ 200 2010
Net
In#o)e?
Net
SalesM=*
1>48>90=0>942>'98
024
1'>=1>84=''>94'>=9'
022
1'>=,>21488>4'2>1,4
0199
Net
Sales?
otal
sset
My*
=0>942>'9881'>'8>,2=
00'
''>94'>=9'944>82>'=2
008,
88>4'2>1,41>0,>024>=80
008
+uPont
Return8n
ssets
M=Ly
11 1@> 16
4'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 48/70
Borking!
Net In#o)e?Net Sale!
Net In#o)e!
Net &rofit or net inome is the &rofit after ta; /hih is o%tained as mar u& re)enue E
maru& e;&enses ross &rofit
ross &rofit$ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net mar$u& inome
Net mar$u& inome L <ee O ommission L #i)idend inome L ;hange inome L
other inome L gain on sale of seurities 5otal !nome
5otal inome $ Administrati)e e;&ense $ ther &ro)isions $ ther harges L share of
inome Profit %efore ta;Profit %efore ta; $ 5a; Profit after ta; or net inome
And net sale Mar u& 3e)enue
Net Sale?otal sset!
otal ssets! Cash and %alanes /ith treasur* %ans L Balanes /ith other %ans L
lending to finanial institution L !n)estmentL Ad)anes L ther asset L &erating fi;ed
asset L #efferd ta; asset$net
Craphi#al Presentation of +uPont Return on ssets
1.91
1.87
1.69
1.55 1.6 1.65 1.7 1.75 1.8 1.85 1.9 1.95
2008
2009
2010
'uont Return n Ass
48
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 49/70
Interpretation!
As /e see in gra&h and ta%le the #uPont 3eturn on Assets ratio dereases in 2008 and
2010 as om&are to 2009 it means in *ear 2009 the #uPont 3eturn on Assets ratio is high
as om&are to 2008 and 2010 it ha&&ens due to inrease in mar$u& re)enue
Na)e of ratio
H 8perating In#o)e ;argin
For)ula! 8perating in#o)e )argin "E/I? Net Sales$L100
Sho, in ta3le
9ears 200@ 200 2010
E/I Ma* 567@@<7>66 617>@7@22 6766<7<<
Net Sales M3* =0>942>'98 ''>94'>=9' @@75>271(5
8perating
in#o)e )argin
Ma?3*
>6( >2> >@>5
Borking!
3e)enue E Maru& ;&enses Cross profit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net )ark.up in#o)e
Net mar$u& inome L <ee O ommission L #i)idend inome L ;hange inome L
other inome L ain on sale of "eurities otal in#o)e
5otal !nome $ Administrati)e e;&ense $ ther &ro)isions $ ther harges L share of
inome Profit 3efore ta=
E/I Profit 3efore a=ation K Interest e=penses
49
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 50/70
Net Sale Mar u& re)enue
Craphi#al Presentation of 8perating In#o)e ;argin
76.93
79.27
78.74
75.5 76 76.5 77 77.5 78 78.5 79 79.5
2008
2009
2010
!eratin inco#e #ar
Interpretation!
As /e see in gra&h and ta%le the &erating inome margin is dereasing o)er the *ear
2008 and 2010 as om&are to 2009 it ha&&ens due to inreasing of sale more quil* than
to o&erating &rofit
Na)e of ratio
H Return on 8perating ssets
<ormula: Return on 8perating ssets "E/I? 8perating ssets$L100
Sho, in ta3le9ears 200@ 200 2010
E/I Ma* 567@@<7>66 617>@7@22 6766<7<<
8perating ssets
M3*
=0>8,=>,08 =,>80>==' 6527@627(06
Return on @(6 >2 10@5
0
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 51/70
8perating ssets
M"a?3$L100*
Borking!
3e)enue E Maru& ;&enses Cross profit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net )ark.up in#o)e
Net mar$u& inome L <ee O ommissionL #i)idend inome L ;hange inome L
ther inome L gain on sale of seurities otal in#o)e
5otal inome$ Administrati)e e;&ense $ ther &ro)isions $ ther harges L share of
inome Profit 3efore ta=
E/I Profit 3efore a=ation K Interest e=penses
8perating ssets Cash and %alanes /ith treasur* %ans L -ending to finanial
institutions L Ad)anes E net L &erating fi;ed assets
Craphi#al Presentation of Return on 8perating ssets
1
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 52/70
8.36
9.72
10.84
0 2 4 6 8 10 12
2008
2009
2010
Return on !eratin Asse
Interpretation!As /e see in ta%le and gra&h the 3eturn on o&erating asset is inreasing e)er* *ear so
3eturn on o&erating asset ratio is mo)ing to/ards lo/ /hih indiates that the Com&an*
must gi)e attention to/ards its usage of o&erational asset
Na)e of ratio
H Return on otal EAuity
For)ula! Return on EAuity "Net in#o)e?Sharehol&er*s eAuity$L100
Sho, in ta3le
9ear 200@ 200 2010
Net income ‘a’ 1<75<@7<0 1>7<617@56 1>7<6(7215
Shareholder’s
eqit! ‘"’
81,497,458
94,265,853 1#3,88#,#48
$etrn on
qit! ‘a&"’
18.97% 18.63% 16.91%
2
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 53/70
Borking!
Net &rofit or net inome is the &rofit after ta; /hih is o%tained as Mar u& 3e)enue $
Maru& ;&enses ross &rofit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net mar $ u& inome
Net mar $ u& !nome L <ee O ommission L #i)idend inome L ;hange inome L
other inome L ain on sale of "eurities 5otal !nome 5otal inome $ Administrati)e
e;&ense $ ther &ro)isions $ ther harges L share of inome Profit %efore ta;
Profit 3efore ta=. ta= Profit after ta= or Net in#o)e
Sharehol&er*s eAuity "hare a&italL reser)esL una&&ro&riated &rofit L sur&lus on
re)aluation of fi;ed assets
Sour#e!
Change in equit* statement under the head 202
Craphi#al Presentation of Return on EAuity
18.97
18.63
16.91
15 16 17 18 19 20
2008
2009
2010
Return on %)ui
Interpretation!
,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 54/70
3eturn on quit* "3 tells us ho/ muh &rofit a om&an* earned in om&arison to the
total amount of shareholders? equit* !n 2008 it /as 1@ it slightl* dereases in 2009
%* 1@6< and again dereases in 2010 %* 16(
Na)e of ratioH Cross Profit ;argin
For)ula! CR8SS PR8FI ;RCIN "Cross Profit ? Net Sales$L100
Sho, in ta3le
9ear 200@ 200 2010
Cross Profit Ma* (>70<@7 0(0 (>75<@705@ 5(722176<@
Net Sales M3* =0>942>'98 ''>94'>=9' @@75>271(5
Cross Profit
;argin Ratio
M"a?3$L100
60@1 5@06 5@@<
Borking!
ross &rofit Mar u& re)enue $ Mar u& e;&enses
Net "ale Mar u& 3e)enue
Craphi#al Presentation of Cross Profit ;argin Ratio
4
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 55/70
60.81
48.06
48.85
0 10 20 30 40 50 60 70
2008
2009
2010
ross ro/it arin Rat
Interpretation!
!n 2008 the &rofit margin ratio is =0,81 a%ut in 2009 and 2010 it sho/s dereasing trend
!t is due to inreasing of mar u& e;&enses more quil* than mar u& re)enue
&$ #tivity Ratios
#tivity ratios )easure a fir)Ds a3ility to #onvert
&ifferent a##ounts ,ithin their 3alan#e sheets into #ash
or sales
hese in#lu&e!
H otal ssets urnover
H Fi=e& ssets urnover
N;E 8F RI8
H otal ssets urnover
F8R;U! 8 SSE URN8VER RI8 Net sales ? otal ssets
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 56/70
Sho, in ta3le
9ER 200@ 200 2010
Net sales Ma* =0>942>'98 ''>94'>=9' 88>4'2>1,4
otal ssets M3* 81'>'8>,2= 944>82>'=2 1>0,>024>=80
otal ssets
urnover Ma? 3*
00>5< i)es 00@2< i)es 00@<< i)es
Borking!
Net sale Mar u& 3e)enue !nterest arn 3eturn
otal ssets! Cash and %alanes /ith treasur* %ans L Balanes /ith other %ans L
lending to finanial institution L !n)estment L Ad)anes L ther asset L o&erating fi;ed
asset L #efferd ta; asset$net
Craphi#al Presentation of otal ssets urnover
0.0745
0.0825
0.0855
0.068 0.07 0.072 0.074 0.076 0.078 0.08 0.082 0.084 0.086 0.088
2008
2009
2010
Tota" Assets Turno
Interpretation!
5otal Assets 5urno)er ratio of all three *ears sho/s the inreasing trend in 2008> 2009
and 2010 5he trend sho/s that %an is using its assets /ell %eause it is ontri%uting
=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 57/70
more to/ards sales As /e see in *ear 2010 the 5otal Assets 5urno)er is little %it inrease
as om&are to other t/o *ears
Na)e of ratio
H Fi=e& ssets urnover
For)ula! Fi=e& ssets turnover Net Sales ? Fi=e& ssets
Sho, in ta3le9ear 200@ 200 2010
Net sales ‘a’ 607527>@ >>75>76> @@75>271(5
'i(ed assets ‘"’ 24,217,655 25,147,192 (517<607>00
'i(ed )ssets
trno*er ‘a& "’
2.52 +imes 3.1# i)es 3.29 i)es
Borking!
Fi=e& sset &erating <i;ed Assets
Net Sale Mar u& re)enue 3eturn !nterest arn
Craphi#al Presentation of Fi=e& ssets turnover
'
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 58/70
2.52
3.1
3.29
0 0.5 1 1.5 2 2.5 3 3.5
2008
2009
2010
ied Assets turno
Interpretation!
5his <i;ed Assets turno)er ratio sho/s inreasing trend in e)er* *ear lie in 2008 <i;ed
Assets turno)er is 22 times and its inreases in 2009 u& to ,10 times and it also and
more inrease as om&are to 2008 and 2009 u& to ,29 times <i;ed assets usage is
satisfator* %eause these are ontri%uting more to/ards sales
e$ ;arket Ratios
;arket ratios are #o))only use& 3y the investors to
assess the perfor)an#e of a 3usiness as an invest)ent
an& also the #ost of issuing sto#k
hese in#lu&e!
H +ivi&en& per share
H Earning per Share
8
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 59/70
H Pri#e?Earning Ratio
Na)e of ratio
H +ivi&en& per share
For)ula! +ivi&en& per share +ivi&en& pai& to share hol&er ?
verage #o))on share outstan&ing
Sho, in ta3le
9ear 200@ 200 2010
+ivi&en& pai& to
sharehol&er
=>104>894 >820>,,8 8>0=0>10
vg #o))on
share outstan&ing
89=9' 10'=,'0 1,44=,
+ivi&en& per share 6@1 Rs <51 Rs <1 Rs
Borking
vg #o))on share outstan&ing Share #apital a)ount ? Par value of share
9ear 200@ 200 2010
vg #o))on
share outstan&ing
@767><1?10
@6><1 ≈
89=9'
107>6(7>02?10
10>6(>02 ≈
10'=,'0
1(75<5762@?10
1(5<562@
≈1,44=,
Craphi#al Presentation of +ivi&en& per share
9
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 60/70
6.81
5.41
5.991
0 2 4 6 8
2008
2009
2010
'iidend !er s+are
Interpretation!
5he gi)en gra&h and ta%le sho/s that in *ear 2008 the +ivi&en& per share is =81 %ut
it derease in 2009 and again inrease in 2010 #i)idend &er share ratio informs a%out
the &rie of shares in the maret also tells the )alue of the %an?s shares &rie 5his
ratio for the %an is rising 2010 as om&ared to the 2008> 2009
Na)e of ratio
H Earning per Share
For)ula! Earning per Share Profit vaila3le to sharehol&ers or Net in#o)e
after ta=? No of shares outstan&ing
Sho, in ta3le
9ear 200@ 200 2010
Net in#o)e after 14890 1'=184= 1'=,214
=0
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 61/70
ta=
No of shares
outstan&ing
89=9' 10'=,'0 1,44=,
Earning per Share 1>2( Rs 16(2 Rs 1(0< Rs
Borking
Net In#o)e!
Net &rofit or net inome is the &rofit after ta; /hih is o%tained as mar u& re)enue E maru& e;&enses ross &rofit
ross &rofit $ 7Pro)ision for ad)anes L Pro)ision for in)estment L Pro)ision lending to
finanial institution L Bad de%ts /ritten off Net mar$u& inome
Net mar$u& !nome L <ee O ommission L #i)idend inome L ;hange inome L
ther inomeL gain on sale of seurities total inome
5otal inome $ Administrati)e e;&ense $ ther &ro)isions $ ther harges L share of
inome&rofit %efore ta;
Profit %efore ta;$ ta; Profit after ta= or net in#o)e
No of share 8utstan&ing Share #apital a)ount ? Par value of share
Craphi#al Presentation of Earning per Share
=1
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 62/70
17.23
16.32
13.05
0 2 4 6 8 10 12 14 16 18 20
2008
2009
2010
%arnin !er +a
Interpretation
arnings &er share ser)e as an indiator of a om&an*Hs &rofita%ilit* 5he reason of
inrease earning &er share is to inrease the net inome of the om&an* and the reason of
fallen earning &er share is that net inome is dereasing and the outstanding share of the
om&an* After 2008 its dereases in 2009 and 2010
Na)e of ratio
H Pri#e?Earning Ratio
For)ula! Pri#e Earning Ratio %urrent )arket Share pri#e ? Earning per Share
Sho, in ta3le
9ear 200@ 200 2010;arket value per
share
0,2 '4,' '=82
Earning per
Shares
1'2,F 1=,2F 1,0F
Pri#e Earning
Ratio
220< Rs 5<<>0 Rs <@@66 Rs
=2
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 63/70
Borking
Sour#e!
%urrent )arket Share pri#e fro) htt&:///seom&
EPS is availa3le in 3alan#e sheet
Craphi#al Presentation of Earning per Share
2.9205
4.557
5.8866
0 1 2 3 4 5 6 7
2008
2009
2010
rice %arnin R
Interpretation
5he Prie arning ratio is greater in 2010 as om&are to 2009 and 2008 Prie arning
ratio doesnHt tell us the /hole stor* %* itself !t is usuall* useful to om&are the Prie
arning ratios of one om&an* to other om&anies in the same industr*
=,
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 64/70
1( Future Prospe#ts of the 8rgani4ation
Am doing internshi& in national %an of Paistan and o%ser)ed during internshi& and see
detail in NBP /e%sites and internet that the future of National Ban of Paistan is )ar*
%right and the e;&ansion of NBP is inreasing da* %* da* and during the alulation of
ratio ! o%ser)ed that the earning of NBP is high as om&are to %ase or &re)ious *ears 5he
most three ratios to he the future &ros&ets of the entit* and all three ratios sho/s
inrease e)er* *ear these there ratios are urrent asset ratio> Ioring a&ital> ross Profit
3atio But NBP is gearing hallenges faed %* the domesti %aning industr* due to
inno)ation and ad)anement in international %aning
5he future of NBP is %right and NBP is maintaining its &osition to set higher standard of
ahie)ement %eause /hen ! alulate the ratios all re&resent inreasing moment and all
are &ositi)e it means the %an has a&a%ilit* to &a* off and its de%t is also su&er%5he
ations taen %* urrent management &ro)ide a great o&&ortunit* for NBP for maing it
future &ros&er and an mae NBP not less than an* modern ommerialize %an in
Paistan
=4
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 65/70
15 %on#lusion
! am doing m* internshi& &rogram in the largest o)ernment %an of Paistan its
National Ban of Paistan NBP is one of the leading %ans in %aning setor #uring m*
sta* of = /ees at NBP it?s m* 1 st &ratial life e;&eriene> ! learnt a lot of tas> man*
&rofessional sills ! also learned a%out ho/ to deal /ith &u%li NBP has 124
nation/ide and almost 2 %ranhes o&erating in other foreign ountries inluding ("A>
China> <rane> .ong @ong> Azer%aian> Bangladesh> and .ong @ong National %an of
Paistan is one of the %iggest online %ans in Paistan NBP is a go)ernment %an that
/h* it /ors aording to rules set %* the state %an of Paistan NBP is also in)ol)ed in
ommerial %aning !t is a &art of "tate Ban of Paistan and it is its maor strength
National Ban of Paistan esta%lish in the National Ban of Paistan ordinane 1949
Am doing m* internshi& in NBP if ! sa* the future of NBP is %right it /ill not %e /rong
! o%ser)ed during m* training in NBP the &a&er /or of NBP is a/esome %ut no/ a da*
of tehnolog* the tehnolog* is an im&at to sur)i)e in the maret and to %e in
om&etition )er* organization has some /eaness and during m* internshi& in NBP <$
10 %ranh !slama%ad ! also o%ser)ed it o)ers all its /eaness and tae o&&ortunities at
=
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 66/70
right time surel* it an %e in the /a* of &rogress insh Allah and /ill ontri%ute in o)erall
&rogress of NBP at national le)el as /ell as the international le)el
Ihen ! alulate the 3atio anal*sis of National Ban of Paistan it sho/s that NBP is a
most rising %an /ith highest return on a&ital> largest maret share amongst all Bans in
Paistan NBP arries highest ost to !nome ratio as om&are to all other ommerial
%ans But still thins that there is need for de)elo&ment to o)erome on /eanesses in
order to ee& its &osition as an e;ellent in %aning field
@ee&ing in )ie/ the finanial ratios it is o%ser)ed that Net assets of the NBP are
inreasing da* %* da* 5he net &rofit is also inreasing /hih ma* attrat the in)estors
5he &rofit of national %an of Paistan is also inreasing da* %* da* that attrat the
ustomers and in)estors 5his ratio of NBP is inreasing /hih sho/s large num%ers of
the assets are finaned %* the de%ts /hih is not good Positi)e /oring a&ital ratio
sho/s that its assets are more than lia%ilities> so the %an is a&a%le to &a* its lia%ilities
3atio sho/s that NBP is utilizing its Assets effiientl* NBP should full* onentrate to
im&ro)e its &erformane and standards to meet the hallenges %* the eonom* as /ell as
%* the om&etitors and for this &ur&ose it needs to o)erome the &ro%lems and im&ro)e
the qualit* of ser)ies s&eiall* in ad)ane setion> that /ill &re)ent it from huge losses
==
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 67/70
1< Re#o))en&ations for I)prove)ent
I)prove its EPS 3e#ause its sho,s #o)pany
profita3ility
In#rease sale an& re&u#e e=penses to earn
3etter profit )argin
I)prove liAui&ity position 3y in#reasing its
sale
In#rease the #urrent assets as #o)pare& to
='
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 68/70
#urrent lia3ilities
Proper training of staff )e)3ers
Prevailing frien&ly environ)ent
%o)plaint #ounter shoul& 3e availa3le
Borking #apital shoul& 3e positive
=8
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 69/70
16 Referen#e - Sour#es use&
• Ie%site of National Ban of Paistan ///n%&om&
• Annual 3e&ort of National Ban of Paistan
• Ne/s&a&er #a/n
• Ne/s&a&er 5he Nation
• Ne/s&a&er Business 3eorder
• Miss Asia Aslam 7Branh Manager
• Auditor?s re&ort of National Ban of Paistan
• "earhing from different /e%sites from !nternet
1> nne=es
http!??,,,n3p#o)pk?Pu3li#ations?in&e=asp=
=9
8/13/2019 Finance Internship Report on National Bank of Pakistan 2012
http://slidepdf.com/reader/full/finance-internship-report-on-national-bank-of-pakistan-2012 70/70
http!??,,,n3p#o)pk?Pu3li#ations?nReport200@asp=
http!??,,,n3p#o)pk?Pu3li#ations?nReport200asp=
http!??,,,n3p#o)pk?Pu3li#ations?nReport2010asp=