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For the completion of my report I am indebted to plenty of people for their very sincere
cooperation that they extended to me at various stages. First and foremost problem that
every student faces is the completion of a report is gathering of data while it is very
difficult to learn & rotate in different department of the bank especially in National Bank
of Pakistan where work burden is quite higher compare with other banks. On the other
hand there is too much short time of our internship (six weeks), furthermore staffs of the
bank are too busy in their work so that we cannot be able to learn and do according to our
report requirement.

I am very thankful to staff members of National Bank of Pakistan, Main Branch

Islamabad, for guidance and providing me valuable information regarding my report

Finally I am thankful to the most merciful and Almighty Allah who gives me the strength
that I fulfill my task efficiently.

Muhammad Umar


Internship Report on NBP, Main Branch Islamabad.
This report highlights the operations and functions of National Bank of Pakistan. NBP act
as financial agent to its customers in return it gets reward for its services in the shape of
profit. Being a Government owned institution it plays an important role in development
of society as well as in development and growth of the economy.
National Bank of Pakistan is one of the leading banks in Pakistan. According to
international standards of banking system it is one of the best bank in South Asian region
as well as the bank of the year 2008. This report explains how different functions of NBP
work and what are their services.

The main purpose of the internship is to gather relevant information to compile internship
report on National Bank of Pakistan Main Branch Islamabad.

Another purpose of this Internship program is to enable the students to use the
management techniques acquired during their courses, and find out the possible solution
of management problems faced by the organization

The report is based on my six week internship program in National Bank of Pakistan. The
methodology reported for collection of data is primary as well as secondary data. The
biggest source of information is my personal experience, observation while working with
staff and having discussion with them. The annual report 2008 also helped me in this


Internship Report on NBP, Main Branch Islamabad.
The NBP was established vide NBP Ordinance No. XIX of November 9. 1949. British
Govt. devalued its currency in September 1949, India devalued its rupees but Pakistan
did not. It led to a crisis in trading between the two countries and India refused to lift the
Pakistan Jute. To solve this problem i.e. to export jute NBP was established through an
Ordinance of GOP. National Bank of Pakistan maintains its position as Pakistan's
premier bank determined to set higher standards of achievements. It is the major business
partner for the Government of Pakistan with special emphasis on fostering Pakistan's
economic growth through aggressive and balanced lending policies, technologically
oriented products and services offered through its large network of branches locally,
internationally and representative offices.

National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its
balance sheet size surpasses that of any of the other banks functioning locally. It has
redefined its role and has moved from a public sector organization into a modern
commercial bank. The Bank's services are available to individuals, corporate entities and
government. While it continues to act as trustee of public funds and as the agent to the
State Bank of Pakistan (in places where SBP does not have a presence) it has diversified
its business portfolio and is today a major lead player in the debt equity market, corporate
investment banking, retail and consumer banking, agricultural financing, treasury
services and is showing growing interest in promoting and developing the country's small
and medium enterprises and at the same time fulfilling its social responsibilities, as a
corporate citizen.

National Bank of Pakistan has built an extensive branch network with 1250 branches in
Pakistan and operates in major business centre abroad. The Bank has representative
offices in Beijing , Tashkent , Chicago and Toronto . It has agency arrangements with
more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities
Ltd, NBP Exchange Company Ltd, NBP Capital Ltd, NBP Modaraba Management
Company Ltd, and CJSC Bank, Almaty , Kazakhstan . The Bank's joint ventures are,
United National Bank (UK), First Investment Bank and NAFA, an Asset Management
Company (a joint venture with NIB Bank & Fullerton Fund Management of Singapore).

Internship Report on NBP, Main Branch Islamabad.
The Bank's financial performance has been remarkable. In 2006, total assets are estimated
at Rs635 billion, while deposits have grown to nearly Rs502 billion. Pre-tax profit rose to
Rs26 billion. Earnings per share have jumped to Rs24.01 in 2006. The increase in profit
was achieved through strong growth in core banking income. Interest income increased
by Rs10 billion through growth in the loan portfolio as well as increase in spreads.
Advances increased by Rs48 billion to Rs316 billion. The Bank maintains a sound loan
portfolio diversified in nature to counter the risk of credit concentration. It ranges from
providing credit to the un-banked market segment under NBP Karobar, to small and
medium enterprises, to agricultural loans, to large corporate customers.


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


To be recognized as a leader and a brand synonymous with trust, highest standards of

service quality, international best practices and social responsibility.

Board of Directors

Internship Report on NBP, Main Branch Islamabad.
Mr. S. Ali Raza is the Chairman, President and Chief Executive Officer of National Bank
of Pakistan, the largest Commercial Bank of the country. Mr. Raza is a graduate of the
London School of Economics and M.Sc. in Adm. Sciences. Before joining the National
Bank of Pakistan in July 2000 as the Bank's President, he held a key management
position as Regional Manager, Pakistan, Middle East and North Africa at the Bank of
America (BOA).

Mian Kausar Hameed, is an MBA from IBA, Karachi. His experience includes
Manufacturing, Retailing, Marketing, Management, HR, Training and Teaching at
various levels in various organizations for 38 years after his education. He has worked
with reputed national and international organizations as Regional Manager, Managing
Director/CEO, Management Consultant, Resident Director, Member and Chief Operating
Officer. He addressed international conferences on Sugar and Ethanol and was speaker in
workshops and seminars on CDM and Carbon Finance. He has written several papers on
CDM, Ethanol, Agriculture in Pakistan, Trends in Management and HR Development.

Mr. Ibrar A. Mumtaz is a Businessman. He was born in 1947 and comes from a
prominent business family of Lahore. He was educated at Aitchison College, Lahore,
F.C. College, Lahore and the Institute of Business Administration, (I.B.A) University of
Karachi. After completing his education he joined his family business in 1968, namely
the Fazal Din’s Group of Companies comprising of Fazal Din & Sons (Pvt) Ltd., Lahore
Chemical & Pharmaceutical Works (Pvt) Ltd., Medipharm (Pvt) Ltd., Fazal Din’s
Pharma Plus (Pvt) Ltd. and Medequips.

M-Tariq Kirmani after completing his Masters in Business Administration (MBA) Mr.
Kirmani embarked upon a rewarding career, starting with a multi-national Oil Company
(Caltex later Chevron Pakistan) in 1969 and worked for seven years in the United States
of America, United Arab Emirates and Australia in different senior management

Internship Report on NBP, Main Branch Islamabad.
positions in Marketing Operations and Finance. In 1991, Mr. Kirmani became the first
Pakistani to be elected as a Company Director of the mentioned multi-national company.

Mr. Mohammad Ayub Khan Tarin is a government official. He is an MBA from Western
Michigan University, USA. At present, he is working as Additional Finance Secretary
(Budget), Ministry of Finance. He possesses 31 years experience in the fields of Financial
Management, Budgeting, Accounting, Auditing including Performance Auditing &
Public Administration.

Mrs. Haniya Shahid Naseem is an MBA with more than fifteen years experience of
working in the education, social, industrial and agriculture sectors of Pakistan. She has
served for 5 years on the Board of a textile company, having a turnover of more than one
Billion Rupees. Presently she is actively involved in the administration of Pakistan Public
School Multan. She is a progressive agriculturist and actively participates in the
management of her family’s agricultural farms. She is a member of the Multan Chamber
of Commerce and Industry, and is also on the guest faculty of IBA, Multan.

Secretary Board of Directors

Mr. Ekhlaq Ahmed, EVP is the Company Secretary of the Bank and also the Secretary of
Credit & Operations Committees. He is M.A. (Economics) from Rajshahi University,
Bangladesh (former East Pakistan). He is a Diplomaed Associate Institute of Bankers,
Pakistan (DAIBP) and secured overall 1 st position in order of merit and won Muslim
Commercial Bank Prize in the subject of “Foreign Trade & Foreign Exchange”. He is an
Associate of Institute of Corporate Secretaries of Pakistan (ACIS). He is also a “Certified
Director” on the panel of Pakistan Institute of Corporate Governance (PICG) since
November, 2007. Mr. Ekhlaq Ahmed is the first senior executive of the Bank who has
achieved the status of “Certified Director”.

Internship Report on NBP, Main Branch Islamabad.

Management is a distinct process consisting of activities of planning, organizing,

actuating and controlling performed to determine and accomplish stated objectives with
the use of human being and other resources.

NBP have a centralized type of management because the top management takes all the


Senior Management of NBP comprises of the following member and their respective

Name Designation
Masood Karim Sheikh SEVP & Group Chief, Corporate & Investment Banking
Group and Chief Financial Officer

Mr. Ekhlaq Ahmed EVP & Secretary Board of Directors

Derick Cyprian SEVP & Group Chief, Special Assets & Remedial
Management Group

Imam Bakhsh Baloch SEVP & Group Chief, Audit & inspection

Shahid Anwar Khan SEVP & Group Chief, Commercial & Retail Banking Group

Nadeem A. Dogar EVP & Group Chief, Information Technology Group

Muhammad Sardar EVP & Group Chief, Audit & Inspection Group

Dr. Asif A. Brohi SEVP & Group Chief, Operations Group

Javed Mehmood EVP & Group Chief, Risk Management Group

Muhammad Nusrat Vohra SEVP & Group Chief, Treasury Management Group

Nadeem Ilyas EVP & PSO to the President

Internship Report on NBP, Main Branch Islamabad.
Dr. Mirza Abrar Baig SEVP/Group Chief Human Resource Management &


This chapter presents the services and departmentalization of NBP. Services are outputs
of the firm/organization, which are in intangible form & which are the backbones of any
organization to earn profit? NBP offers the following services to the people.






Internship Report on NBP, Main Branch Islamabad.

















Dividing an organization into different parts according to the functions is called
departmentation. So NBP can be divided into the following main departments.



Internship Report on NBP, Main Branch Islamabad.






This section of report constitutes the SWOT Analysis of NBP.

SWOT analysis is one of the most important steps in formulating strategy using the organization
mission as a context; managers assess internal strengths distinctive competencies and weakness
and external opportunities and threats.

The goal is to then develop good strategies and exploit opportunities and strengths neutralize
threats and avoid weaknesses with an overall organizational goal is to increase the wealth and
value of the organization.




Internship Report on NBP, Main Branch Islamabad.



















Internship Report on NBP, Main Branch Islamabad.



Porter’s five forces model:

This approach is widely used for competitive analysis. It is because of the high intensity
of competition among companies there five main competitive forces.

Rivalry among competitive firms:

It is a very powerful force among the competitive forces the strategies pursued by
one firm can be successful only to extent that they provide competitive advantages
over the competitor. These competitive strategies may be lowering prices, best quality
series. The NBP offering very low charges an demand draft, telegraphy transfer, mail
transfer and give other additional services to the customers and to the Nation.
Because NBP is a “Nation’s Bank.

Internship Report on NBP, Main Branch Islamabad.
Potential entry of new competitors:

Whenever new firms ca easily enters a particular industry, the competition increases.
The gout restriction, tariffs, patents etc can stop new firm to enter into the business as
per Banking industry is concerned this market is already very situated in Pakistan and
there are banks with quality services and low charges. So there is no threat to NBP
from potential entry and NBP is also a public sector bank because of that no other
new bank not takes over it.

Potential Development of substitute products:

This is the third factor affecting the competitions. There may be some other product
can be substitute the product of that industry. For example banks offering sawing
schemes in Pakistan and these schemes are also offered by GPOs in Pakistan so they
must compete them in this field. If they offer low rates than GPOs so people will go
to deposit in GPOs. People concentration high rates so that’s why sawing PLS
accounts are more then current accounts.

The next examples will ATM, which substitute presenting cheques at counter and
encash it. The NBP is lacking in this field. It must improve in this field to compete
the competitors.

Bargaining Power of Suppliers:

The bargaining power of supplier affects the intensity of competition, especially when
there are a large number of suppliers. In case of banks the suppliers are customers
they supply the money to banks. Now they must offer good services, quality, and
safety. Low charges etc to customers. In this field NBP is very good. B/C at offers
good quality services to customers. They charge low charges on remittances. So that’s
it is a competition to other banks.

Bargaining Power of Consumers:

Internship Report on NBP, Main Branch Islamabad.
When customers are concentrated or large, or buy in volume, their bargaining power
represents a major force affecting intensity of competition. Now the number
customers in Pakistan for banks are very high. Banks offering variety of products and
services to their customers. NBP have a large number of customs. Now it must offer
good services and products to their customers to attract them to come to NBP.


There are following learning points for me in the bank.


In my 1st and 2nd week in NBP I workd under the assistance of Mr.Muhammad
Nasir (Operation Manager) from him I learn about activities related to Deposit Dept:
and performed such activities like:

• Opening an account
• Issue new cheques books
• Sorting out cheques
• Difference between cheques of current, saving and royal account

And I also scrolld the challan of Government and pass vouchers.

In my 3rd and 4th week in NBP, they assigned me work related to pension department.
The staff guided me very nicely and I learned lot of things pension related activities.
They give the pension to retired Govt. employees. There are three types of pensions

Internship Report on NBP, Main Branch Islamabad.
• Provincial
• Central
• Defense

These are different according to their PPO numbers

For example:

Provincial PPO 123456

Central PPO 12345/pak

Defense PPO da/dg1/gh/4 etc.

I am full trained now in this particular job and I served lot of people in that week. How to
fill farm? How to enter in ledgers and balance account and what are file and book and all
other things concerning to pension department.

In 5th week I worked under the assistance of Mr.Muhammad Irfan Khan (Chief
Manager) from him I learn about remittance activities:

• Demand Draft

• Telegraphic Transfer

• Pay Order

• Mail Transfer

In 6th week I learnt the swift operations. How swift system works and managed and how
to transfer money through swift system.

Internship Report on NBP, Main Branch Islamabad.

This internship gave me a chance to apply

Internship Report on NBP, Main Branch Islamabad.


The findings are the facts that we discover from the analysis of an organization and in the
light of those findings we give the suggestion, which are realistic and adoptable for the
organization. After critically analyzing both the operations and financial data of National
Bank, let me summarize the findings of the report.

Here, few finding and implementation plans are given to overcome the problems
mentioned in the previous chapter. These analysis are mainly based on my practical
working & experience at the NBP during internship.

I have divided this section in four parts which are as under.

 Problems at the branch.

 Function analysis.

 Administrative analysis.

 Personal management’s analysis.


Customer Satisfaction

In NBP customer dealing is will, but during rush hour the customer has to wait for a long
time for their turn. It’s quite hard for a new customer or potential customer to get the

Internship Report on NBP, Main Branch Islamabad.
required information.

Poor record management and filing system

During my internship I observed that filing system of branch is not good. When certain
record is needed the staff has to struggle to find it out and a lot of time is wasted both by
the staff and customer as well also old filing and registering system are being used yet.

Unequal distribution of work

Work is not equally distributed. On one hand some employee have to work all day
without relaxing while some others have nothing to do at all. This not only creates
confusion among employees but also hurting and disturbing for overall setup of the bank.
And above all it results in dissatisfaction among customers as well.

Marketing efforts

A useful mode of contact is through personal marketing visits or efforts. Such visits are
important in informing and perusing the existing and potential customers about the
products and creating a sense of belongingness with them. By this way a branch manager
increases their deposits and creat more advances. The ultimate result is increase in the
bank’s deposits as well as supreme motive that is profitability.

Less staff

Staff of the branch is less and workload is too much on the existing staff. Due to which
they are unable to give proper time to their customers. Sometimes due to this shortage of
time they lose their good customers also from this shortage of staff they are unable to
give proper time to recording and other functions of the bank.


Formal Organization

Internship Report on NBP, Main Branch Islamabad.
Formal organization includes the activities of two or more person, which are cautiously
determined groups and coordinated towards a given objective. It provides base when
people are able to communicate with other, when they have common purpose and they
are willing to work.

In NBP, we find a formal organization. Bernard referred to an organization as a formal

when the activities of two or more persons are coordinated towards a given objective.
The formal organization comes into being when people are able to communicate with one
another or willing to act and share a purpose.

In this formal organization of NBP the activities are carried out in a more formal way. In
theoretical terms it provides basis for communication with one another but in practice it is
not exercised because an employee at high level cannot get straight away to manager or
SVP and ask him about of his problem faced by him, because first he has to talk to his
immediate superior and follow a proper channel of communication.

Difference between theory and practice

A vast difference exists between theory and practice and NBP has written procedure but
practical work done by employees is a bit different from written procedures.

Bank duty to maintain secrecy.

They don’t care about maintaining secrecy, especially during the rush hours. They speak
loudly about the account position and while getting clearance of cheque the person can
easily get the whole information from the ledge. The deposit clerk must be careful while
passing any cheque. In this regard another shortfall is in giving the information about the
balance on telephone.

Excessive paper work

It is notified that due to the lengthy procedure of paper work the bank employee are over
burdened. They are unable to give proper attention to the clients and face difficulties in
getting their job done. One reason for lengthy procedure and excessive paper work in the

Internship Report on NBP, Main Branch Islamabad.
bank is the lack of computerized technology.

More accounts fewer deposits.

Efficient banking is one, which does not emphasize on number of accounts but on greater
amount of deposits. NBP is more interested in increasing its number of account
irrespective to its deposit. The main reason behind it is that bank does not provide
personalize service to all the account holders and does not improve its quality and

Delegation of authority

Manager has very limited authority; he has to take the approval from his management
authority i-e. In case of advance he has to take the approval of general and regional
manager. The other problem is created, when the manager is not present in his office, the
customer having to wait for hours. This discourages both customer and officers because
they have to suffer a lot


Job analysis is not effective

Only on the basis of job analysis it can be decided how a right person can be hired,
trained, compensated or promoted. It is very important for an organization that nature of
the job is described and job specifications are mentioned. Most of the employees are
simple graduate and do not have proper background about their job. This creates
problems both for organization and for the employees. In NBP salaries are given
according to the seniority and grades. People with simple or complex responsibility are
getting the same salary and facilities. This creates dissatisfaction among employees.

Carelessness in opening of account

When customer comes to open an account, the staff does not bother to check his/her place
phone number and permanent address. It is important because in case of overdraft by

Internship Report on NBP, Main Branch Islamabad.
mistake or anything which places his accounts in debit it will be difficult to trace him.

On the other hand he may be involved in any fraudulent activities against the bank. In
this case the bank will be in awkward position.

Lack of specialized training

NBP does not provide adequate facility of specialized training to their staff. Training is
generalized rather than specialized. As the worker finishes his training, he is inducted
into a specific field without having great deal of knowledge about the field.

In the Hayatabad branch the newly recruited employee training was not imparted, they all
learned things on the job.

Low Profit Rates

Most of the customers shifted their account to the National Saving Center because of the
low rates of saving deposit discourages the customers. Bank should increase their profit
rates to attract customers.

Poor job rotation.

There is absence of job rotation in NBP Hayatabad branch. A person placed in one-
department remains their forever. It reduces career opportunities as well boredom and in
the end results in career plaguing. Job rotation is very important for employee especially
for those who are newly recruited. The newly recruit should be rated in all department of
the banking in order to get familiar with working of different departments so that when
they get a responsible position they have know how of the whole system.

Delays in Loan Advancement

It has been observed that there is much delays in sanctioning of cases from the head
office, which results in customer dissatisfaction.

Lack of appreciation

Internship Report on NBP, Main Branch Islamabad.
Another very important thing which is ignored in the bank is appreciation if the employee
on their good performance. If hard work and performance of employees is not recognized
and appreciated they become dishearten which results in decline in performance.


Need for better training program

Need of training is greatly emphasized all around the world. Training of the personnel is
part of human resource management. It has been noticed that the training program of
NBP is not adequate.

Once the candidate is selected and placed on the respective job. It becomes essential to
train him adequately for the task. They should learn new methods for motivating
customers. The training programmed of the bank should include scientific techniques to
improve the decision-making and interpersonal as will individual needs of the employee
both specialized to fresh as well as on job to maintain the high standards of service.

Developing Managerial Leadership

Leadership is a practical term of visible, clear on objective and communicating better

control on financial and administrative matters. Manager is not only responsible for their
own units in business, but also in people terms i.e. training, recruiting, grievance handling
and taking immediate initiative in crisis situation to take major decision affection the
future of the bank and banking community.

Recruitment policy

Human resources are the lifeblood of the organization. If the personnel are recruited
carefully they can become asset to the organization in the case of carelessness a liability
on the organization. Bank is not following its recruitment policy properly due to
favoritism, nepotism and political pressure. Both the top authority and staff union tries
their best recruit their favorites, indulgence of political pressure add salt to the wounds.

Internship Report on NBP, Main Branch Islamabad.
The persons selected through these channels are infantile and do not work for the
betterment for the bank.


Promotion in NBP is purely on the basis of seniority, so the new young person having
high qualification remains behind for quite a lot of time. Top management and staff union
put pressure for the promotion of their favorites, which gives a sense of deprivation to the
deserving employee and their efficiency is affected. As the concept of promotion is
attached with better in terms of greater responsibility, more prestige, greater skills and
increased rate of salary. Thus a better and impartial policy of promotion needs to be


Transfer means when a person is shifted from one place to another place. It is done either
that person is needed more on the other branch or for improving his skill variety. It is the
policy of the Bank to transfer each employee 3 to 4 years.

Marketing at desk

Bank employee come in daily contact with many people who happen to deal with the
casual remittance, travelers cheques, safe custody, pensioners, depositing license fee and
variety of other functions and variety of other people with whom the Bank has no account
or regular business relationship. The Bank employees are doing very little on their own to
explore the possibilities of selling banking services to them as a marketing contributor.
The entire Bank community should make a conscious effort in addition to their normal
work to explore the possibilities of selling banking services to them. The market
opportunities are hidden in every dealing a banker handles; the question is that if he has
the art and urge to seize such opportunities.

Lack of business communication

There is no proper way to give information to their customer. To avoid this minor

Internship Report on NBP, Main Branch Islamabad.
dissatisfaction and tension in the mind of customer, and deficiency of the service, it is
recommended that the bank should provide brochures etc containing information in

Some general information should be placed in information notice board on the entrance
where customer can see it easily or it should be self-attractive.


NBP is an effectively operating and profit making organization and carrying out its
activities under a specified system of procedure. The main regulatory body is State Bank
of Pakistan, which provides policy guidelines and ensures that the money market operates
on sound professional basis. While the head office specifies the whole procedure of

Internship Report on NBP, Main Branch Islamabad.
function and operations. This procedure has been modernized with the passage of time
with a view to streamline the approach and underlying procedure for effective
overhauling of its own capabilities so as to bring them at par with international practices.

Here I am giving some suggestions, which in my view can add some input for efficiency
and better performance of NBP as an organization in general and as a main branch in

The recommendations are as follows:

Professional training

NBP staff lacks professionalism. They lack the necessary training to do the job efficiently
and properly. Although staff colleges in all major cities but they are not performing well.
For this purpose these staff colleges should be reorganized and their syllabus should be
made in such a way to help the employee understand the ever-changing global economic

Banking council of Pakistan should also initiate some programs to equip the staff with
much needed professional training.

Delegation of authority

Employees of the bank should be given a task and authority and they should be asked for
their responsibility. Gives proper attention to every work and concern bodies are
responsible to delegate the authority to whom they think that will perform batter.

Performance Appraisal

The manager should strictly monitor the performance of every staff member especially
operation manager of the branch. All of them should be awarded according to their
performance and result in the shape of bonuses to motivated and incite them to work
more efficiently.

To Over Come Problem of Space and Furniture

Internship Report on NBP, Main Branch Islamabad.
In the critical analysis this, problem is discussed. To overcome this problem it is
suggested that a special section should be made inside the branch. Which should only
handle the treasury function, salaries and pensions of federal personnel or the bank
should do these functions in the evening time. Also management should purchase more
furniture and arrange them in such a way which provides maximum space and convenient
especially in deposit department and there should also be convenient sitting place for


Transfer is not properly carried out. Some of the employees are continually serving at the
same post. They are simply rotated at the same branch. Therefore it is recommended that
evenly rotation of every employee should take place after every three years in different
braches of the bank.

Changes in Policies

There should not be any abrupt policies change by the upper management, as this practice
hurts the customer confidences in the bank. Government should make long-term policies

Need Qualified Staff

Required, qualified staff should be provided to branch in order to improve the functioning
of the branch. Especially a telephone operator should be appointed.

Utility Bill Charges

Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job
despite this working resulting in a loss to then Rs 3 to5 per transaction. These charges
should be increased to RS 10 per bill to enable the branch to cover their handling costs
and make some profit.

Link with the Head Quarter

Internship Report on NBP, Main Branch Islamabad.
100 major branches of NBP should established a direct link with the, head quarter in
Karachi, through Internet or Intranet. This will make the functions and decision making
of the management easier and convenient. But still NBP main Branch Mansehra did not
have online facilities.

Credit Card

National bank of Pakistan should start its operation in credit card. These cards are very
helpful for the ordinary customer in general and the business people in particular. To
make it mores secure and to eliminate the misuse of it, the management is required to
keep proper security against the card.
Installing Validator and ATM

Validator machine is used to count the currency notes and its installation will help to
eliminate to counting errors and will save time. This will also help in saving time result is
work completed on time

This branch is situated in the City, which is supported to be the hub of business activates.
In this area an automated teller machine (ATM) is the need of the hour businessmen can
easily check their balance in the bank and also with draw their money conveniently.

Interest on Overdraft:

Overdraft is a short-term credit facility provided by the bank to its trustworthy customers
free of interest. Only bank commission is charge small amount of mark-up on the
overdraft, which will help the bank to improve its revenue position.

Clean Loans

Clean loan or clean overdraft is the credit facility extended to the customers to the
customers without any security. These types of small term loans should not be extended
to anybody, because sometime these loans are provided to blue-eyed people of the
management and they become a part of bad debts.

Internship Report on NBP, Main Branch Islamabad.
Cash Financing

In this mode of financing the amount of credit not utilized by the borrower is remained
tax-free. It is recommended that a small amount of interest should be charge on this
amount as well because the bank gas kept-aside the amount for that borrower and can not
advance it anywhere.

Decreasing Administrative Expenses

Bank should their administrative expenses. This was Rs 8 billion in the year 2000. That
can be done by lying off the surplus pool of employee with golden handshakes scheme.
The branches that are not much used could also be closed. Employee can also be how to
control the bank expenses. That will give positive results in the future.

Needs to be Flexible in credit Policy

As mentioned earlier, NBP is very conservative in advances and loans policy. It reduces
the investment opportunities. Also loans should be given to the small businessmen and
the agriculture sector at the low markup rate. It should adopt flexible credit policy while
giving credit to the agriculture sector.

Technological Advancement

I would like to suggest that at least all the main branches of NBP should be fully
computerized in order to expedite the dealing process among bankers and their
customers. Every department should be provided a computer with adequate training
(especially Advances, Deposits and Foreign Exchange departments) Daily records should
be entered directly into these computers, (instead entering the overall daily transactions
after the banking hours). It will not only reduce transaction time, will increase accuracy
but will also be efficient as well.

Staff Relationship

Internship Report on NBP, Main Branch Islamabad.
Good relationship among staff member leads to the peak performances in any
organization. I observed that the staff relationship was normal other wise but some time I
noticed that there existed a little conformity among the staff members. Another syndrome
from which the staff suffered was that all of them considered themselves more important
than others. Some of the officers used to say that if I am absent for a day the bank would
stop working. So this sort of attitude is not good because it mars bank image and juniors’
willingness learn and work hard and in the end will hurt the whole team.

Improper Distribution of Work

Proper distribution work leads to success in every organization. Proper distribution of

work prevents the employee from over and under work situation. So for a smooth running
of an organization proper distribution of work is the hint to be followed. During my
internship I observed that there was no proper distribution of work in the bank. I saw that
some of the employee worked like ants other sat idle starting here and there. So this
created a lot of over work situation for while relaxation for other.

Favoritism and nepotism

In the during my internship in Main Branch Mansehra I saw that when some of the
employees are transfer to other places, due to their relation with influential people and
with top management they can cancel their transfer in few weeks, when they are
unsatisfied at that place. Not in one branch of NBP but as a whole. This process will also
be apply in recruitment and selection process. Deserving candidate will fails to qualify.

So I suggest that in the organization there should be no favoritism, nepotism and politics
and their transfer and promotion should be made on merit and according to the rules and
regulations of the bank and provided favorable environment to the employee to show
their performances.

Skilled and Highly educated staff

Internship Report on NBP, Main Branch Islamabad.
National bank of Pakistan requires skilled and highly educated staff. Nowadays, there is a
large number of M.B.As who is unemployed. These young people have the knowledge
and skill to compete in this competitive and dynamic environment of banking. National
bank of Pakistan should recruit new young professional.

Inter Departmental Transfer

I watched during my internship that, there is number of employee who have worked on
one seat for many a year. It can have negative effects motivation of employee who is hard
working and intelligent. Take the example of advances section. In advance section if the
employee is transfer after sixth month or seven month, how can he be able to show his
performances and how can he be able to know the bank customer in a short period of

Marketing Policy

The branch should adopt various marketing strategy and promotion strategy to promote
the bank and its product. But being a nation’s bank it did not makes so much marketing

The most important in my opinion is personal marketing; it is the most effective of all
when you think in term of branch level. But on the whole organization level, they should
arrange the seminar with in the bank and outside the bank. They should introduce various
prizing schemes just like Habit Bank. Mahana Scheme, Bank Al-Falah (monthly income
earning scheme) and various others. They should do more advertising through newspaper
and media and through channel of personal contacts.

Complaints of Customer

There should be an information desk to provide the information and to receive the
complaints of the customer in the bank. There is no complaint box available in the branch
and not any person appointed to hear the complaints.

Internship Report on NBP, Main Branch Islamabad.
Every person cannot go to the manager for the complaint because most of the people are
hesitant. So I suggest management to install a compliant box in the branch, and recruit a
special person for that guidance of the customer when they are unable to manage some
difficulties in banking matters.

Analysis of the Business:

Proper analysis of the business reports should be conducted before extending any type of
loan. For this purpose professional training of the stuff member is required.

Organizational Commitment

It is suggested that employees working on daily wages basis should be given some
benefits, which the other employees are getting. Their salaries must increase according to
efficiency, performance and service.

Managerial Leadership

In the analysis, we have discussed the difficulties of the assistant in taking any initiative;
therefore it is recommended that the assistants should he given special training to make
them ready for the leadership.

Credit Monitoring

The credit department of the bank should carries out vigilant credit monitoring. They
should ensure the proper payment of installments and the mark-up by the borrower.

The staff members who have done all the paper work of the loan extension should
perform the monitoring, as he/she will be having more information about the borrower.
Housing and House Hold Goods loans

Bank should initiate these loans because most of bank’s customers are middle class and
they cannot afford to buy house or household goods at once by their own. For this
purpose bank should set lowest markup to its to attract customers.

Internship Report on NBP, Main Branch Islamabad.
Avoiding Bad Debts

Special care should be taking while extending the loan. Loans should be awarded against
reasonable securities, where market value should be equal to the loan granted.

Policies should be crafted in a way to ensure that no loan is extended on political

pressure. SBP regulation for loan approval should be strictly followed. According to
which the current ration of borrower’s business must be 1:1 and the debt to equity ratio
should be 60:40, means the liquidity position of business should be healthy.

Car Financing Scheme

Car financing scheme with the name of “ MY CAR FINANCING SCHEME” should be
initiated This finance scheme will help the general public to buy the car of their choice in
easy quarterly installments The bank monitors will do strict monitoring and the car will
be hypothecated with the bank against the car loan.

Avoid Political interference

Political interference is the second big problem for National Bank of Pakistan. So, it is
very important to avoid political interference in banking operations. In order to avoid this
first suggestion is the denationalization of the bank

Internship Report on NBP, Main Branch Islamabad.
 Israr, Siddiqi H. (1998Banking law and Financial Services. Karachi: Decent Print
Enterprises. Page 35, 36, 40.

 Sir Paged John. The law of Banking. The Law of Banking. McGraw Hill Publication:
page 51-58

 Dr.Aftab Ahmad Khan (Macro Economics and Financial Sector of Pakistan.)

 www.nbp.com.pk

 Bank Nationalization act 1974.

 President Office, June 21, 2006, Circular No. 13, 2002. Head Office National Bank of
Pakistan Karachi.
 Standard procedure Manual of National Bank of Pakistan.
 Instruction Circulars of 2008
 Http// www.nbp.com.pk.

 National Bank of Pakistan Yearly Report 2008.

Internship Report on NBP, Main Branch Islamabad.