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obtain loans at his doorsteps on easy terms and conditions. It has also

played a pioneering role in introduction of profit and loss sharing System

(PLS) as a major towards Islamization of economy.

In addition to the normal business operations the bank

provides special loan facilities for higher education for studies abroad and

Qarz-e-Hasna to deserving poor students of Medical and Engineering

Colleges in Pakistan. The well equipped research department to work on the

cdeveloping tredns of finance and banking, besides a very well managed

library at the Head Office.

The banks carry on its business through a wide network of

branches locally and internationally. These branches execute their function

under the supervision of local Regional Offices and regional offices are

supervised by the Head Office located a magnificent building in the heart

of Karachis center.

In the forty five years that have followed the bank has made

remarkable progress testifying to several things.

It is now extending the operations of the Bank to all branches

to Banking, to commerce, to industry to trustee services as well as to

agriculture and to the need of the small or big businessman.

It has rapidly advanced from an institution with restricted

power to the biggest commercial banks in the country it also shows it

soundness of the policies that the bank has pursued in the execution its

tasks.

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The National Bank has lead the trial in this respect, other banks

have followed it. The National Bank has great contribution towards

building wide Banking structure in Pakistan and serving all aspects of the National life and all classes of society.

Source: http://www.nbp.com.pak

2. HISTORY AND MANAGEMENT OF N.B.P

The story of National Bank of Pakistan is part of Pakistans

struggle for economic independence.

When, National Bank of Pakistan came into existence in

November 1949, the country was facing a severe economic crisis originally,

the intention was to set up this Bank some time in early 1950, but the

critical situation that developed in the jute trade as a result of Indias refusal

to accept the exchange rate of the Pakistan Rupee, following thedevaluation of its own and the sterling functioning Dacca and opend its

offices at five important jute centers namely Narayanganj, Chandpur,

Rangpur and Khulna, in the East Pakistan.

The Bank advamced large sums of money to the agents of the

newly established Jute Board and gave much needed help to the market.

The crisis was averted, the jute growers received a fair price for the produce

and the country earned the foreign exchange it would have otherwise lost.

Again, in 1950 following the outbreak of war in Korea,

Cotton prices shot up to unprecedented levels and the credit facilities

available for financing the movement of the cotton crop fell far short of

requirement.

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The National Bank of Pakistan came forward to establish its

offices in the Cotton growing areas and extended credit facilities liberally inorder to restore stability to the market. In 1951, the country was once again

faced with a crisis in the cotton trade when prices was crashed and touched

the lowest level since independence following the cessation of hostilities in

Korea. The bank in collaboration with the cotton board provided the

necessary Credit facilities to the trade and the crisis was tided over.


Another important event in the early history of the National

Bank of Pakistan was taking over the agency work of the State Bank of

Pakistan in 1952, for transacting Government business and managing

currency chests at places where. The Bank of Pakistan did not have an

office of its own. In 1962, the agency arrangement was extended for further

period.

Prior to nationalization, a Central Board of Director governed

the bank which consists of a managing Director appointed by the Central

Government, nine directors elected by the shareholders and the three

directors appointed by the Central Government. The President of the

Central Board was appointed by the central Government amongst the

Director.

Consequent upon nationalization, the Central Board disclosed

and in its pace an Executive Board consisting of president , who is the

Chief Executive and four other member were appointed for General

direction and superintendence of the affairs and business of the Bank.


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The general direction and superintendence of the affairs and

business of the bank vests in this executive board. In 1980, the Federal

Government constituted a Board of Directors comprising the president, fivemember of the Executive Board of the Bank one nominee each of the

Pakistan banking council and the ministry of Finance. All nationalized

commercial banks are controlled via the Pakistan Banking Council, being to

State Bank of Pakistan regulations as well. The Federal Ministry

responsible for Bank operations is the Ministry of Finance.

3. OBJECTIVES OF NATIONAL BANK OF PAKISTAN

The main objective of National Bank of Pakistan has been to

include and spread banking habits among the people mobilize their savings

and thus make and ever increasing contribution to the economic

development of the country. It has all along pursued a policy of rapiddevelopment extending, its facilities to almost every center of economic

potential in the country. Its services have been increasing continuously and

are being brought within an easy reach of the ever-growing number of

people.

Source: http://www.nbp.com.pak/

To day it provides the largest network of offices in the

country, 1436. Being in Pakistan and 22 aboard. It offers remittance

facilities to almost every important center in the country to provide

facilities to the traveling public the bank has introduced its own travelers

cheque which are en cashable at a branch of the bank in Pakistan.

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1. FUNCTIONS OF NATIONAL BANK OF PAKISTAN

The National Bank of Pakistan a commercial bank generallymakes advances for a period not exceeding one year, except in case of

small and medium industries for which advance may be made for a

maximum period of five years. The bank makes not only against the

security of stocks and goods hypothecated or pledged to the bank, but also

against documents of goods and properly, shares are various joint stock

companies, Government securities, Insurance policies deposits receipts, etc.

The margin, and rate of interest are determined by several factors including

the type of security the size of loan and the integrity of the party.


The Bank is authorized to carry on kinds of banking business

and is empowered to make loans. It has also undertaken special financing

operations connected with Government prices support scheme. The bank also gives advances loans, especially for agricultural products, such as

cotton etc, It also safeguards the valuable articles of people. It also arranges

training programs for Bank officials.

It caters to the needs of the trade, industry & agriculture, both

in private & public sectors. It participates in procurement of seasonal crops

e.g. wheat, rice, cotton, sugar cane, etc. It also provides credit facilities to

small industrial units agriculture sectors as per credit mandatory targets

fixed by the State bank of Pakistan.

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PURPOSE OF STUDY

The main & primary purpose of this study is to fulfill the

requisite requirements towards the completion of MPA (Hons) degree. In

this connection every Student is Require undergoing an internship of six

weeks in any business organization institution.

The business internship report is carried on to be familiarizing

with actual working conditions in any organization by physical & practical

participation in the business affairs.

For this, I went to the Regional & Head Office of National

Bank of Pakistan & written report.

Secondly it is necessary for the Public Administration Degree

that after acquiring through knowledge, we should acquaint ourselves with

the entire practical knowledge & experience, which we can only gain

through visiting any Organization & Conducting a detailed study.

Thirdly, the purpose of this study was to gain good amount of

confidence & to be come aware of the mechanism of National Bank of

Pakistan by working dealing with officials of the Bank.

Finally, the purpose was to know how National Bank of

Pakistan plays its role significantly in the development of financial & other

industrial. There was an ample chance for us in this study for learning about

financing and Banking development in Pakistan.

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2. METHODS OF STUDY.

For the preparation of this Internship report, I used twomethods to collect data, first primary data collection and second secondary

data collection.

In secondary data collection I interviewed different officers

and officials. For this purpose, I paid many visits to National Bank of

Pakistans Regional Office Hyderabad ,National Bank of Pakistan Fatima

Jinnah Road Branch Hyderabad.

In conduct interviews from head of the different department of

NBP and all the information is collected systematically.

For this purpose, I prepared the questioner and asked all the

detailed function and procure of their departments.

I interiewed following incharges.

1. Mr. Kauro Khan Memon (Area Manger)

2. Mr. Ghulam Murtaza Baloch (Incharge Advances)

2. Mr. Naeem Ahmed Shaikh (Incharge F.E.

Dept:)

3. Mr. Saulat Hussain (Incharge

Admin)

5. Mr. Sohail Ahmed (Incharge Inspection)

6. Aijaz Hussain Rathore (Export)

7. Jamshed Ali (Export).

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All above officers have fully cooperated with me and provided

all the necessary information, which was required to me.

I have collected all the information by using both methods

Primary & Secondary data. All the necessary and relevant information was

systematically collected arranged analyzed for writing this internship

report.

I am highly obliged to and thankful to all the above Executive

and personnel of National Bank of Pakistan, who have provided all the

assistance and enabling me for the preparation of this report.

3. LIMITAIONS

During the course of study, I faced many difficulties in

collecting the recent and accurate information.

There are number of constraints encountered by me. Some of

them are as under:-

1. The Bank fid not allow me to work practically in the

bank, I was only bound to ask questions to their incharge officer.

2. They gave me very limited period of time per day visit,

which also caused some difficulties in obtaining adequate

information.

3. A good amount of information related to the books of

account, which may be beneficial for me were not provided.

4. The bank officials because of secrecy of the bank

maters did not answer the number of question.

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5. The lower grade staff was not properly trained

therefore they have been answered accurately.

6. Majority of staff member have not give full attentionand they were not interest to provide me the functional and other

operation details, except some officers who provide me full

assistance.

Instead of all these difficulties, I have completed this work

due to full cooperation and assistance of earlier mentioned officers.

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CHAPTER # 02

INTERNAL FEATURES OF NBPMANAGEMENT AND ORGANIZATIONAL STRUCTURE

1- MANAGEMENT AND HEAD OFFICE MANAGEMENT

Among seven member of group Chief Executive is called the

President. The Bank also has directors for superintendence and direction of its business. The members of board consists of President. Who is Chief

Executive and six other directors as members appointed by the government.

The member of Board responsible for granting loans in the

field likes agriculture industry, housing and import export trade and to

make the policy of the Bank.

Source: The information about this chapter given by Soulat Hussain (Admin. Manager)

A- Organization and Head Office Management

In the National Bank of Pakistans head office, there are

sixteen 16 separate division to deal with all the necessary problems

separately, on the top of all these divisions.

The details about these divisions are as under

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International Division.

This is again sub divided into 2 divisions.

1. Foreign Exchange and operation division.

2. Administration and Credit division.

An Executive Vice President also manager these divisions

separately. Finance and investment division (Economic Research &

Cooperate Planning)

A Senior Executive Vice President also manager these

divisions and this section contains two divisions.

3. Finance and Investment Division.

This division is further segmented into different wings and asenior vice president looks after every wing.

(a) Investment & resources wing

(b) Accounts, Planning & Budgeting Wing

(c) Govt: Debit Management wing.

(d) Publicity and Public Relation Wing

(e) Editorial Board Quami Banker Wing

(f) Reconciliation Wing

4. Economic Research and corporate Planning division.

This division does the work of economic research of the

country. This division is also managed by an Executive Vice President.

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Administration, Computer and Human Resources Development

Division.

From the name it is clear that is consists of three divisionsnamely.

5. Administration Division

This division is also divided into Establishment Wing, Staff

Relation, Central unit fraud and forgery and regulation wing, Personal

Wing and Personnel career planning wing.

6. Computer Division.

The division consists of computer wing and EDP audit, and

procedure and administration wing.

7. Human Resources Development Division.

This division supervises all the staff colleges, at Karachi,

Islamabad, Lahore and Peshawar.

All the above division supervised and under controlled by and

coordinates under a Senior Vice President.

8. Audit and Inspection Division.

There are two wings working under this division, which is.

(a) Implementation Wing

(b) Regional Audit Chief.

This division deal with audit inspection of sub-ordinate offices

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b). Field Management and Organization.

There are four executive to supervise the bank maters of every province, as they are called provincials chiefs. These Provincials Chiefs

are responsible for the entire banking in their provinces such as income.

expenses advances and deposits.

The Regional Chief NBP Balochistan

Regional Chief NBP Punjabn

Regional Chief NBP Sindh

Regional Chief NBP N.W.F.P & Azad Kashmir.

These provinces are again divided into regions, the regions are

controlled and management by regional heads, which are responsible for

the supervision in their circles and deal with the problem zones in their

jurisdiction of Branches and Staff.

The country has been dividedm into 19 (nineteen regions) by

NBP to ficilitate its functions.

Sindh Province

1. Karachi Region-A

2. Karachi Region-B

3. Main Branch Karachi Region

4. Hyderabad Region

5. Sukkur Region.

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NWFP Province.

6. Peshawar Region7. Abbotabad Region

Azad Kashmir

8. Muzaffarabad A.K. Region

Balochistan Province

9. Quetta Region .

Punjab Province

10. Lahore Region-A

11. Lahore Region-B12. Main Branch Lahore Region-C

13. Bahawalpur Region

14. Gujranwala Region

15. Sialkot Region

16. Faislabad Region

17. Multan Region

18. Rawalpindi Region

19. Islamabad Region .

These regions are also sub-divided into zones . The incharge

of zone is called Zonal Chief.

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3- ORGANIZATIONAL STRUCTURE.

Source: Soulat Hussain (Administration Manager)

4 DEPARTMENT FUNCTIONING UNDER N.B.P

NBP has seven main departments for functioning of which

whole function of bank is depended or we can easy that all services are

rendered through these seven departments.

17

PRESIDENT

DIRECTORS/ SEVPS

Procincial Chiefs/SEVPs

Regional Chief / EVP

Zonal Chief / SVP

Vice President

Assistant Vice President

Officer Grade-I,II,III

Clerical and non-clerical staff


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These department are esplained with their headings are as

under

a). ADVANCE DEPARTMENT

Advance department receives the application from intending

borrowers and submits the same application to the higher authority after

processing for approval the advances can be of following nature.

Source: Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)

Source: Shafqat Ali Mahesar (OG-III)

Source: Mr. Khadim Ali lund Baloch (OG-III)

Source: Saeed Ahmed Khan

a. Agriculture advance to farmers

b. Short terms advance to business man

c. Long term advance for setting industry

d. Medium term advance for working capital

e. Seasonal advance to cotton gingers Rice and sugar

mills.

b). REMITTANCE DEPARTMENT

Bank promotes the facility of remitting funds within the

country and outside country within certain limits, Usually money remitted

through Demand Draft, Telegraphic and SWIFT transfer.

Always two parties are involved in this function one is

receiver and another is sender.

c). ACCOUNTS DEPARTMENT

Accounts Department maintains the fixed deposits receipts of

the depositor. Account department also keep income and expenses

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accounts. Account department prepares the weekly and daily statement of

the affairs of the branch are first like a balance sheet.

Source: Altaf Ahmed (OG-III)

d). FOREIGN EXCHANGE DEPARTMENT.

1). Imports

We sell our foreign exchange to the other country which is

called such as we purchase the foreign goods from the others. Import is

done through letter of credit (L/C) by the importer. Letter of Credit is an

undertaking given by the importer bank to the exporters bank.

2). Export

Export is to sell our goods to the other country and earn

foreign exchange. The bank provide facilities of exporting the commodities

to the manufactures of the goods of the country.

3). Foreign Remittance.

The bank provides the foreign remittance facilities to thestudent studying aboard. Bank also provides foreign exchange in the shape

of travelers cheques to the intending visitors.

Source: Syed Qamar Hashmi (Assistant)

Source: Aijaz Ali Rathore, (OG-III)

Source: Miss Razia (OG-III)

e). CLEARING HOUSE DEPARTMENT

The function of Clearing House department is to pass the

cheque presented by one branch of the bank to other branches of the banks.

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Clearing house is usually set up on the big cities and is control by the State

Bank of Pakistan.

f). CASH DEPARTMENTCash department is backbone of the branch., Cash department

receives the cash from depositors and makes the payment to the cheque

holder.

g). MARKETING/BUSINESS DEVELOPMENT DEPARTMENT

Marketing Department is set up in the big branches in the

commercial banks. Generally the main functions of the marketing

department are as under.

a). To introduce a valued client/depositors to the bank branch.

b). To bring a valuable business for the branch.

c). To provide the financial facilities to the sound position from the

banks point of view.

d) Marketing, department plays very vital role in increasing the savings of

the bank.e). The development of the branch depends upon effective marketing

system.

f). Marketing department introduce institution among the persons.

Generally the manager of the branch deals himself in the marketing

function.

Source: Rafique Arbaba (OG-II)

Source: Syed Shah Nawaz (Assistant )

Source: Moinuddin Muallian (OG-III)

Source: Mohammad Atiq Khan (OG-I)

Source:Various Bank information circulars. No & Date N/A

CHAPTER # 03

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

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1. COMPUTERIZATION

With a view to up grading and streamlining the workingsystem of NBP and procedure plans were under taking by the management

to provide microcomputer and electronic ledger. Cards machines to the

larger branches of a bank. This program will also be expended to the other

smaller branches in coming years. Utilization of the banks mainframe

computer at Head Office, which happens to be the most sophisticated

amongst all the banks in Pakistan is also progressing to further upgrade the

capacity of NBP in coming year.

2. DECENTRALIZATION

Under the direction of the government, operation of all

nationalized commercial banks were significantly centralized by setting up

provincial head quarter at Karachi, Lahore, Peshawer and Quetta, eachheaded by a member of executive board, enjoying vast power.

The banks policy of decentralization of financial sanctioning

authority by delegation of powers to Regional and circle officers and credit

committee, resulted in improving efficiency and prompt attention to the

need of the customers on a country vide basic. Decisions had been quicker

and service to client more rapidly and effectively available as a result to this

policy.

This scheme, which has been well received by the business

community and the various chambers will be beneficial in quick disposal of

credit facilities all provincial level and will also help in solving the problem

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and grievances of the customers more effectively. Service to clients will

also be improved.

Source: Various NBP information circulars No: and date not available

3. FOREIGN TRADE AND OPERATION

National Bank of Pakistan played an avtive role in handling

the countries export and imports.

The growth of international business operations depends

causally and expansion of foreign contacts. The bank already has 22

overseas branches in important business located areas of the world. The NBP also looking forward to open some new branches in foreign countries.

Errors are also under way to strengthen out relationship with

banks in central Asia and to establish joint ventures with the bank of that

area political and financial stability is restore. National bank will try to

establish branches there.

PROGRESS IN ISLAMIZATION OF BANKING

After the introduction of profit and loss sharing scheme on a

limited scale in January 1981. The Federal Government in 1984 announced

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a major policy decision that by the end of June 30 1985 all the domestic

operated banks and financial institutions will be on NIB system. This

objective has been achieved from 1st

July 1985; all banking operations have been switched over to NIB system. In the final stage from July 1, 1984

saving deposits have been convert on profit and loss sharing basis from this

date on words the bank is not accepting fixed period deposits on interest

basis.

It should not be considered the end of the mission as mush

more remains to be achieved. Until June 1985, none interest basis

investment opportunities were more, while NIB liabilities were

comparatively less. But now after complete switch over the reverse in the

reverse in the position. But further continuous research and dedicated

efforts are necessary art national level so that Pakistan may present, before

the world a system which is really new, dynamic and in accordance.

Source: Soulat Hussain (Admin. Manager)

CHAPTER # 04TRAINING AND FACILITIES TO STAFF

1. TRAINING TO STAFF

In 1949, the first year of operations the NBP has one hundred

employees one its payroll but with in two years this number had grown to

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1505 by 1960 the figure has risen to 5023 and now in 1996 it is the order or

20694.

During the first ten years the NBP trained its own staff

through a series of training programme both for junior officers and clerical

staff. By 1958 how ever it was obvious that one thins more comprehensive

was needed and the bank established a staff college Karachi. Three mote

colleges at Islamabad, Lahore and Peshawar, setup later. These colleges

provide course of instructions, supervisor personnel and clerks to meet the

Banks ever growing trained personnel. This needs springs not only from

the steady grown for the banks business but also to replace wastage due to

retirement resignation, ill health or death.

The staff college receives junior bank officers for further

training in banking the course lasting from six to nine weeks with about

twenty five students in each course.

The staff college course are designed not only to impart

technical instruction, but also develop qualities of judgements decisions,

leadership and management, since these student are likely to be those men

who may expect to the seniors most executive positions the bank has to

offer.

The bank also deputes officers to attend banking seminar both

in Pakistan and abroad and it attaches great importance to the exchange of

ideas information and knowledge which can most use fully accure from

these gatherings.

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In its position the National Bank has considerable

responsibility in ensuring that the country is well represented at meetings of

bankers at domestic and international level.

2- SALARIES AND FACILITIES TO STAFF

As an employer NBP is also deeply conscious of as

responsibilities and act it be said that at the out set, consider its self a good

employer. Its seales of pay terms of services, staff benefits and amenities

compare very well with instruction of similar stature in Pakistan.

The result is that employment with the bank has come to be

regarded as some thing of prize. The scale of pay and allowances for

officers and staff are revised from time to time as need grows. In addition

employment with bank personable and bonuses are regularly paid.

The bank provides free medical treatment for all its

employers, their families and dependent parents. A senior member of the

medical profession acts as Medical Advisor and medical consultant.

Source: Mr. Noman Ahmed

Source: Mr. Khadim Ali Baloch

The bank pays school fees for the children of all the

upervisory, electrical and subordinate staff and this facility are extended to

college fees also.

To meet the problem of fining suitable residential

accommodation in the hig cities. NBP has had recourse to several measures

in Karachi and Lahore for instance the bank has constructed residential

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quarters. NBP has granted loans on easy terms to members of staff to

enable them to construct houses of their own.

To solve the problems of conveyance for its employees the

bank makes advances to staff for the purchase of cars motorcycles and

cycles.

The bank has provided finance for the establishment of sports

clubs and staff recreation centers, to enable staff sport clubs and other

suitable recreational activities to flourish. Co-operative stores and

subsidized canteens help the lower paid categories to get the best value

form their carnings.

CHAPTER # 05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS BE

OPERATED BY NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits.

1. Current deposits

2. PLS Saving deposits

3. Fixed deposits account (Time Deposit)

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4. Foreign Currency Account

1. CURRENT DEPOSIT

For current deposits NBP open the account in the name of

individual proprietary firms, partnership firm, private limited companies

clubs, association societies and other institutions. Single or two can operate

the account more persons jointly as the instructions may be given at the

time of opening the account.

If the person who wants to open the account is not in position

to sign or signature is not firm or shaky the bank requires is photographs

and he has to come in the bank at the time of withdrawals of his deposits.

The initial amount of deposits with which he can open the

account usual not be less then Rs.1000/-

But his restriction is not imposed to the accounts of charitable

institutions and the account opened in the month of closing i.e. June &

December.

Source: Waqarullah Khan (OG-III)

2. PLS SAVING ACCOUNTS

The silent features or profit and loss sharing saving accounts

to be opened in NBP as under.

1. These accounts can be opened by individuals in their own

single are joint name. The PLS saving accounts can also be

opened for provident fund or other benevolent funds of

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companies, firms, organizations of welfare and educational

institutions.

2. PLS saving account can be opened with an minimum amount

of Rs. 500/- only

3. Money can be with drawn form PLS saving account only

through cheque.

4. To share in the profit a minimum balance of Rs.500/- must be

maintained a account. The minimum balanced on sixth and

last of month will qualify for the profits.

5. The profit will be calculated on the basis of monthly minimum

balance for the period of six months i.e. from January to June

and July to December

6. The head office of NBP determines the profits or loss on PLS

saving deposits and advice its branches the rate and time of

distribution of these profits concerned PLS saving account.

7. With drawls from PLS saving accounts are allowed not

oftener then 8 time in a calancer month and for a total amount

not exceeding Rs. 1500/- for withdrawal of a large amount

seven days not in writing is required to be given. This notice

shall not how ever affect the monthly with draw ordinarily

allowed. In the even of contravention of rule. depsositors shall

forfeit his right to share profit for he notice period shall be

deducted from his total profit earning products.

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8. The shall be no restrictions on maintaining the maximum

balance in PLS saving account.

9. On the fist of Ramzan every year the Zakat 2.5% will be

recovered from the deposits on the balance of that day. But if

depositors give declaration of Zakat or he is non-mulsim no

Zakat will be recovered from him in the same day Zakat is not

recovered from account in which the balance are below upto

prescribed limit as declared by the administrator of Zakat

Pakistan Act system of accepting deposits has been stated in

10. NBP since 01-01-1981.

Source: Mr. Nisar Ahmed Qazi (OG-III)

Source: Mr. Imtiaz Ahmed (OG-III)

3- PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED

DEPOSIT A/C

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In the case of fixed deposit account deposit is made for a fixed

period and a money deposited can be with drawn before the expire of

period fixed or before giving an advance notice to the Bank. Fixed depositcaries a higher rate of interest than the other type of bank account and the

rate of interest rises with the length of the period and the amount of deposit.

One opening a fixed deposit account the bank grants to the

depositor a fix deposit (FDR) which is not transferable to any other person.

When the depositor with drawn the receipt must be handed back to the

bank.

The silent features of profit and loss sharing term deposit

excepted by NBP are given as under.

The PLS term deposit are excepted from individual in their

own single or joint names, companies firms and other organization.

The PLS term deposit receipt are issued for any amount. There

is minimum or maximum limit or deposits in a single term deposit account.

Tendering cash can make the term deposit only.

PLS terms depositors may be allowed some facilities againstthe security of these receipt credits, after making Lien on the relevant

receipt and subject to recovery of a service charge.

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Under term deposit scheme the depositors not cease to earn

the profit immediately, after the respective maturity date, but they have

been afford a liberal facility. In case the depositors said to with draw their terms deposits on maturity their funds will remain temporarily in used and

on profit earned a responsible share would occur to such over due PLS

terms deposits at the rates declared on PLS sharing account.

The head office of the bank determine the profit or loss on

PLS terms deposit at by any one intervals i.e. the end of June and December

each year and payment of profit to or deduction of loss if any from the PLSterms deposit is to be made the deposits for longer period will earn a little

more profit then those of shorter period deposits.

The total profit upto Rs.950/- is exempted from income tax

In the case of encashment before maturity but after

completion of months profit will be paid for the entire period for which the

deposit remained with bank at the rates payable for the respective period to

the PLS saving account after deduction of the Zakat if any.

In PLS term deposit expired and the depositors request with in

one month after the expiring date, for investment. The PLS terms deposit

will be reinvested for the desire period from the date immediately following

expiring date.

Zakat or the face value PLS term deposit will be recoverd asmay time as the valuation dates (i.e Ist Ramzan) falls between the date of

issue and the date of expiry of the deposit.

Source: Abdul Hameed Bhutto (OG-III)

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FOREIGN CURRENCY ACCOUNT.

NBP has also introduced foreign currency accounts for Pakistan and foreign Nation in Pakistan and abroad. This scheme assures its

customers on better profit and superior service.

It offers Pakistani or foreign National to operate a foreign

currency A/C with any one of their authorized branches spread all over the

country.

Deposits of this accounts will be acceptable in all convertible

currency but account will be maintained on the customers choice in USD

Dollar, pounds German Mark or Japanese Yen.

Deposits may be made in the forms of remittances in foreign

currencies.

Travelers cheque on the bank counter will be accepted.

The customer can make with drawls and transfers to any

where in the world.

All the deposits and profits in the customers foreign account

are except from Zakat income or wealth tax.

The customers sources are protected from any scruitny of

concerned authorities.

The NBP has over 1400 branches at home and abroad of these

more than 100 branches are authorized and fully equipped to deal with all

kinds of foreign currency transactions.

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NBP has worldwide network of branches and it has associated

in Arabia bank, All Jazria (26 branches) and national exchange company in

UAE to facilitate the customers in Pakistan, Saudi Arabia and UAE.Source: Atta Hussain Rajpar (OG-III)

FUTURE OUT LOOK OF NATIONAL BANK.

NBP is fully aware of the developments taking place in the

world as well as the changes occur in the economic and social condition

with in the country. The bank is determined to meet new challenges byredefining its goals and strategy as well as by the adjustment of its

operational policies.

The Bank planning to institute major improvements,

especially in customer service launch innovative products to ensure that the

bank continues to play a dynamic role in the development of the country.

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CONCLUSIONS

At the completion of the business internship the interence

draws the following:

It appears a lengthy process of sanctioning advance.

It looks the staff member are not properly trained

It seems the promotion are not given in the due time.

It appears that large amounts paid on administration

cost.It shows that there is lack of recovery system

It seems that there is no net working.

It seems that there shall be a great the rush days for

the customers as well as for the staff members If the No of

counter are limited or very few

It might not be possible for every borrower to repay

the money in due time.

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SUGESTIONS

On the basis of conclusion interence draws the following

suggestions

1- It is suggestion that the process should be short in order in save time

money energy and stationary etc.

2- It is proposed that proper training be provided to the staff membersthat will ultimately increase the performance of Bank over all.

3- It is advised that promotion be given in due time because of interest

to work satisfactory.

4- It is consulted that bank should reduce its large expenses in order to

increase the value of bank.

5- It is suggested that reasonable steps should be taken to recover all

absolute advances.

6- The NBL should introduce the use of computers in order to confront

with the nectic business activities. it will also help to reduce the extra

load of manual work.

7- Extra counters should be brought in order to facilitate during the rush

days the difficulties faced by the bank staff as well as the customers.

8- The period of repayment of the loans should be extended.

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REFERENCES

1. By Greener Michael The Penguine Business Dictionary Edition

1995 Page No.10

2. By Muhammad Rauf Beg Money and Banking 2 nd Edition 1993

Page No.55.

3. By Mukhtiar Ahmed Introduction to Money and Banking Ist

Edition 1995 Page No.60

4. By Israr-ul-Haq Banking Law and Practice

5. By Dr. Syed Anwar Ali Banking Ist Edition Page No.02

6. Annual Report of NBP

2006

INFORMED BY

1. History of National Bank of Pakistan,1998 by: (N.B.P Management

Division)

2. Perwaiz Ali khowaja (Manager Admin)

3. http://www.nbp.com.pak

4. Mr. Ghulam Murtaza Baloch, Incharge Admn: Deptt: (OG-I)

5. Shafqat Ali Mahesar (OG-III)

6. Mr. Khadim Ali lund Baloch (OG-III)

7. Saeed Ahmed Khan

8. Altaf Ahmed (OG-III)

9. Syed Qamar Hashmi (Assistant)

10. Aijaz Ali Rathore, (OG-III)

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11. Miss Razia (OG-III)

12. Rafique Arbaba (OG-II)

13. Syed Shah Nawaz (Assistant )14. Moinuddin Muallian (OG-III)

15. Mohammad Atiq Khan (OG-I)

16. Various Bank information circulars. No & Date N/A

17. Various NBP information circulars No and date not available

18. Islamizationa of Banking

19. Mr. Noman Ahmed

20. Mr. Khadim Ali Baloch

21. Waqarullah Khan (OG-III)

22. Mr. Nisar Ahmed Qazi (OG-III)

23. Mr. Imtiaz Ahmed (OG-III)

Abdul Hameed Bhutto (OG-III)

Atta Hussain Rajpar (OG-III)

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CONTENTS

CHAPTER NO. 1

INTRODUCTION

1. Introduction

2. History & Management of National Bank of Pakistan

3. Objective of National Bank of Pakistan

4. Functions of National Bank of Pakistan

5. Purpose of Study

6. Methods of study

7. Limitation.

CHAPTER NO.2

INTERNATIONAL FEATURES OF NATIONAL BANK OF

PAKISTAN

1. International Features of National Bank of Pakistan

2. Law Recovery, Litigations Division

3. Organizational Structure

4. Departments Functioning under National Bank of Pakistan

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CHAPTER NO.3

ACTIVITIES OF NATIONAL BANK OF PAKISTAN

1. Computerization

2. Decentralization

3. Foreign Trade & Operation

CHAPTER NO.4

TRAINING AND FACILITES OF STAFF

1. Training to Staff

2. Salaries & Facilities of staff

CHAPTER NO.05

FEATURES OF DIFFERENT TYPES OF ACCOUNTS TO BEOPERATED BY NATIONAL BANK OF PAKISTAN.

1. Current Deposit

2. PLS Saving Account

3. Future Outlook of National Bank of Pakistan

CHAPTER NO.6

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CONCLUSION AND SUGGESTIONS

4. Conclusion

5. Suggestions

6. Reference

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INSTITUTE OF BUSINESS ADMINISTRATION

UNIVERSITY OF SINDH, JAMSHORO

C E R T I F I C A T E

This is to certify that Business Internship Report on NATIONAL BANK OF PAKISTAN has been prepared,

MR, AFZAL HUSSAIN UMRANI S/O DIN MUHAMMAD UMRANI

Under my guidance for the partial requirement for the degree of

Master of Business Administration. It is also certified that the work is

found original and the research has been inetienlously carried out and

fulfils all the requisite conditions.

Sir. Zahi Hussain Kazi Dr. Anwar Ali Shah G. Syed

Assistant Professor &

Internship Guide Professor & Director

IBA, University of Sindh, IBA, University of Sindh

Jamshoro Jamshoro

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D E D I C A T I O N

This humble effort is

dedicated

to my beloved parents,

whose love and effortscan never be forgotten.

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ACKNOWLEDGEMENT

Praise to Almighty Allah, the omnipresent, the Omnipotent, the

Omniscient, who bestowed upon me the potentially and ability to

accomplish this work.

No sequence of works can express my sincere gratitude to our

respected Professor and Director, Institute of Business Administration Dr.

Anwar Ali Shah, G.Syed and guide Mr. Perwaiz Ali Khowaja without

whose valuable guidance, rich experiences, helpful advice, useful

suggestions and constructive criticism and comments. I could not have been

able to complete this piece of work titled as Business internship.

I have honour to experess my heart-full gratitude to the executive

and staff member of National Bank of Pakistan, Market Branch Hyderabad,

who kindly gave them acceptance to the topic of my Internship Report

along with many useful suggestions which encouraged me to complete my

work.

Thanks for all those who extend their cooperation for conducting the

work of Business Internship

M.B.A (FINAL) 2006

Institute of Business Administration

University of Sindh,

Jamshoro.

national bank pak

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