national bank internship report for vu -

GENIUSMC0702

MBAHRM

National Bank of PakistanMain Branch Abbottabad

Internship Report

Brief Introduction of the National Bank of Pakistan

Overview of NBP

1. NBP Maintains its position as Pakistan’s Premier Bank

2. NBP is major business partner of Government of Pakistan

3. It has special emphasis on fostering Pakistan’s economic growth through:

Aggressive Balanced lending policy


Overview of NBP

4. NBP also handles treasury transactions for Government of Pakistan as an agent to State Bank of Pakistan.

5. NBP has a network of over 1100 branches locally and 15 overseas branches.

( Source: www.nbp.com.pk)


Business Volume

Non Interest based income shows impressive increase of about 3.7 billion PKR.

Administrative expenses increased by 25% due to training facilities development.

Credit rating maintained at AAA by JCR Credit Rating Agency.

NBP has assets of 350 billion PKR.


Business Volume

NBP follows the: International Accounting Principles, Islamic Accounting Principles and; Regulations of Institute of Chartered Accountants of Pakistan

(Source: National Bank Quarter Report December 2008)


Competitors

There are several other banks which are acting as the competitors to National Bank of Pakistan. These Banks includes:

The Bank of Khyber The Bank of Punjab Bank Alfalah Limited Muslim Commercial Bank Habib Bank Limited My Bank Limited


Competitors

Allied Bank Limited Askari Bank ABN Amro Bank Al-Baraka Islamic Bank Standard Chartered Bank CITI Bank Mezaan Bank etc

Organizational Hierarchy Chart

President

Board of Director

Member Executive Board

Regional Chief

Zonal Chief

Manager

Organizational Hierarchy Chart

Regional Office Abbottabad

Regional management Team

Regional Business Chief

Regional Operational Chief

Regional Risk Mgt Chief

Regional Compliance Chief

Regional HR Chief

Training Program

During my internship in NBP, I followed the training program in the following departments:

Deposit Department Billing Department Accounts Department Human Resource Department

Training ProgramTasks in Deposit Department

In Deposits Department, I received training about: How to collect Deposits from Customer How to Pursue Customers Introduction to Customers

I worked on following types of Deposits in NBP: Current Deposit PLS Account Fixed Deposit

Training ProgramTasks in Billing Department

In Billing Department, I received training about: How to perform Billing of Receipts How to pursue Billing Account of Account Holder How to post Balance after Billing Functions of Billing Department

Training ProgramTasks in Billing Department

I worked on following types of Bills in National Bank of Pakistan:

Inward Bills for Collection ( Demand Drafts) Outward Bills for Collection ( Treasury Bills, Documentary

bills, Pay Orders)

Training ProgramTasks in Accounts Department

In Accounts Department, I received training about:

How to maintain journal of Accounts How to maintain vouchers system Functions of Account Department

Training ProgramTasks in Accounts Department

I worked on following types of Accounts in National Bank of Pakistan:

General Ledger Statement of Daily Affairs Cash book OR Cash cum Day book Transfer Book Income and Expenditure Ledger

Structure of HRM Department

Departmental hierarchy

Vice President Human

Resources

Manager Total Compensation

Manager People and OD

Manager Labor Relations

HRM Process in the Organization

Human Resource Management Process in National Bank of Pakistan

National Bank of Pakistan has existing Human Resource

Department, which operates to:

Increase the skills of the existing employees New recruitment and hiring in the organization


Human Resource Management Process in National Bank of Pakistan

The HRM process consist of following interrelated activities:

Recruitment and Selection Training Compensation and Supervision


Human Resource Planning & Forecasting For HR Planning & Forecasting, we conduct organizational

study to: Determine the organizational Goals Scan the organization environment Set Strategic Goals Formulate the Strategic Plan Course of Action is Designed


Human Resource Planning & Forecasting Steps of Planning Process in NBP: Determining the Objectives Defining required Skills to meet objectives Determine additional Human Resource requirements Develop action to meet the anticipated Human Resource

Needs.


Human Resource Planning & Forecasting

Forecasting:

Zero-Base Forecasting: This method uses the NBP’s current level of employment as

the starting point for determining the future staff needs for the National Bank of Pakistan.



Forecasting:

Bottom-Up Approach: In this method each successive level of NBP start with

lowest, and forecast its employee requirements in order to ultimately provide an aggregate forecast of employment needs.



Forecasting:

Use of Mathematical Model: Mathematical models defines the relationship between the

demand and number of employees needed.Simulation:

It is experimenting with real world situation through a mathematical model representing that situation.


Employee Recruitment & Selection

CV screening and Short listing Written Entry Test

Final Panel / Group Interviews Initial HR Interviews

Selection and Offer


Training and Development NBP has development group called “organizational

development and training group”. Four staff colleges are operating under this group in

Lahore, Karachi, Islamabad and Peshawar. The training is mostly carried through seminars workshops

and mostly on the job training. At the time of induction of the employee he is given the

initial training at Institute of Banking Pakistan (IBP) after that they are posted in the field on their respective jobs.


Training and Development NBP follows two forms of Trainings:

First is related to the training and development of new and mid level employees

Second is the training and development for long term plan, regarding the career development of higher level employees


Training and Development NBP applies on-job and off-job strategies to train its

employees.

NBP training and development academy advises job rotation to ensure and facilitate the production of all-rounder employees.


Training and Development Training Plan start at least 2 months before the

commencement of the new year, in order to make it easy for the socializing and orientation of the new employees.

NBP believes in pre/post tests for the existing employees and post training tests for the new employees.


Performance Management In performance Management factor there are certain aspects

about which NBP takes special care, these are:

Professional Knowledge Improving corporate culture Decision Making Ability Ability to visualize and plan Ability to act on emergent situation


Performance Management

Ability to implement decisions Ability to guide and create team work Communication skills Customer Relationship Acquaintance with technological improvements


Performance Management Performance Evaluation:

An employee do not has any right or access to the Annual Confidential Report ( ACR), but s/he is informed, so that s/he can rectify/improve his/her shortcomings if any.

After ACR paper work, it is entered into database by HR. On the basis of the evaluation, benefits are offered in terms

of promotions, rewards etc


Compensation & BenefitsDifferent types of compensations includes:

Medical insurance Sick leave Vacations Provident and pension funds Promotions


Compensation & Benefits

Overtime pay Profit sharing Bonuses Travel / Meal / Housing Allowancesetc


Career ManagementPromotion:

The criteria for promotion for specified job is usually the merit cum seniority base. Person is eligible for promotion if:

Satisfactory Record of service Meets the criteria for promotion Clear recommendation for his/her promotion in ACR

If there are any departmental proceedings against him or any penalty within last 3 years, then s/he will not be promoted.


Career ManagementDemotion/Expulsion:

On joining, employee is provided with the organizational rules.

A person is demoted to lower rank if the performance required, remains same for 3 years without any improvement.

A person may be expelled on course of bad conduct in law, convicted by law or fraudulent activities.


Career ManagementResignation: When employee wants to resign, he has to submit his/her

resignation in HR Department in 1 advance. If he fails to inform 1 months prior to resignation, then he has to pay 1 months gross salary amount.

After employee put his resign, HRD query all branches if this person has any transactions left with any branch or not? If not, head of HRD approves his resign and send that to employee’s branch manager.


Career ManagementRetirement: HR Department writes to employee, CC to line manager,

advising retirement date. Line manager arrange informal meeting with employee to

discuss plans and confirm right to request continued working. Line manager writes to employee confirming meeting, CC HR. Employee chooses to retire at 60 Years. Normal retirement procedure applies.


Labor Management Relations The society for labor welfare is formed within NBP, which

functions with the help of Management, so form a good relationship and provides:

Immediate relief to any accidental causality. Some benefits to on job deceased. Arranges variety shows for the families of employees. Arrange Educational funds or benefits for the employees.

Critical Analysis

Improve General Banking Facilities Change the mind of the old employees to adapt IT Unclear Brand image of the Bank. People’s perception that its Government Bank with lack

of facilities Customers wants fast and innovative service. HR Management is less existent. Motivational Tools are not followed. Promotion of employees is not done regularly.

SWOT Analysis of NBP

STRENGTHS:

Nationalized Bank Largest Branch Net Work Strongest Capital Structure Monopolistic hold Public Confidence Experience of operation Easy access to the customers


WEAKNESSES: Poor performance of the workers Untrained staff and weak customer handling. Favoritism and Nepotism Lack of coordination Unpleasant working environment Traditional Approach Lack of IT Infrastructure & less No. of ONLINE Branches Burden of running extra number of branches.


OPPORTUNITIES:

Electronic Banking Leasing Business Network in foreign Countries Gain Economies of Scale


THREATS:

Globalization Increase in Competition Privatization Political instability in the country Lack of consistency in Government's policies

Conclusion After completing my internship, I draw following conclusions: NBP’s staff is not well trained comparatively HR procedures are well placed in books but not being

practiced fully NBP’s HR Management is not working good. NBP is utilizing large amount on administrative cost NBP’s process of sanctioning advance is lengthy NBP’s customers handling is poor. NBP’s record on papers is great, but it lacks latest banking

techniques and technologies.

Recommendations

My Recommendations regarding NBP are: Employees should be involved in decisions affecting

them. Promotions and reward systems should be fair. Introducing new and efficient products. Total quality approach should be used. Training should be according to assessed needs. Creation of enhanced performance appraisal system. Job rotation and job enrichment for employees.

Recommendations

Improving communication skills Aggressive marketing strategy in banking Institutionalization of the Human Resource Management Research and Development facilities must be improved. General working conditions and environment must be

improved. New talent/professionals should be hired Public relation desk should be established in each and

every branch.

Thank You !

national bank internship report for vu -

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