CHAPTER - 1

INTRODUCTION TO REPORT
1.1Introduction:
National Bank of Pakistan (NBP) is one of the leading bank in Pakistan, working
smoothly and efficiently in the economy of country which is focus on the
fluctuations most of the time. Now a day’s NBP is focusing on consumer banking
and their services, which gives them edge over the rest of the banks in the country its
consumers banking provide consumers with innovative saving schemes, products
and services.
So far NBP has shown significant achievements in fulfilling all of its objectives
along with the profit limits. Its products has also presented an admirable response by
its clients and contributed a lot in developing the bank’s reputation as well as the
country which is really appreciable.
1.2Purpose of study:
The main intention of this study is the fulfillment of the degree necessities of
Bachelor of Business Administration (BBA Hons) Hazara University Mansehra.
Other purpose of the study is to study the daily procedures of National Bank of
Pakistan (NBP).
The purpose of the study is to work in real life situations and to gain knowledge of
banking practices and together relevant information to complete the internship report
and to examine, analyze and interpret the relevant data in a competent and useful
way.
In this context its objectives are:
 Analyze banking operations, i.e. operational analysis, financial analysis, etc.
 Develop real and sufficient recommendations.
 Improve reporting skills.
 Work practically in bank.
 Build up interpersonal communication.

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 1.3. Scope of study:
The scope of this particular study is limited to the National Bank of Pakistan .
The scope of this study is given below;
1. The 2 month internship program is necessary for the completion of BBA (Hons)
from the department of management sciences Hazara University Mansehra (KPK).
2. This report is concerned with the performance, functions and objectives of the
“HR Department of the NBP Branch of Mansehra.
3. It will help the student in making assignment and writing report on the NBP.
4. It can give help to the management of the NBP in identifying their Strengths,
Weaknesses, Opportunities and Threats.
5. It can give help to the management of the NBP in recruiting, selection, training
and performance appraisal.
6. This report is helping to students to studding regarding Human resource
management Practices.

1.4Limitation of study:
The most important limitation facing the study is the inability to provide information
in the form of analysis and confidentiality of the Bank. Another important limitation
of research is the time constraints.
1.5Methodology of study:
During the internship at the NBP Branch of mansehra, the most important task was
to collect as much as information on the bank in order to have a full productive
report. For the collection of information and data, I used two methods which are
given as under;
1. Primary data:
In primary data collection method, I interviewed different officers for this purpose.
The interviews were not of formal nature but it went along with time and the
questions arose with identification of problems. I prepared many questions and
discuss with Bank officers asked all the detailed function and procedures of their
departments. All officers fully cooperated with me and provided all the necessary
information which was required to me. The interviews have been taken from the
bank officers and also the discussion was conducted with the heads of different

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departments. For collecting primary data, I used personal observation and discuss
my problems with previous internees.
Personal observation:
The following are the some positive proposal and suggestion for the NBP.

• In my opinion the exchange procedure ought to be short for the reason that
to save time for both customers and the bank.

• there should be optimization in staff members and hire well qualified peoples on
the basis of merits .

• Remove the favoritism and Create Delegation of Authority.

• there should be proper training for the employees to enhance their

knowledge in order to bring changes in their behaviors which will ultimately
enhance the performance of Bank over all.

• The bank ought to spend more and more on redevelopment of the

branches to enhance the environment and atmosphere to attract the potential
customers.

• NBP needs to implement computer software to manage the burden of work.

• There is dearth of counters in the bank; there should be more counters to

facilitate the customers of the bank.

• NBP needs to introduce mobile banking.

• Only two watchmen were available at the branch, the security level was not
all so strong at the branch , watchmen needs to be looked after.

2. Secondary Data:
It is also called as historical data. This method can almost always be gathered
faster and at a lower cost than primary data. The secondary data is collected
from following sources;
 Brochures of the Bank

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 Bank Manuals
 Internship reports on NBP available in Library
 Journals & Newspapers
 Internet

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 CHAPTER - 2
BANKING IN PAKISTAN

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 2.1. Origin of banking:
There are different opinions about the origin of the world "Bank". According to
some authors, the word "Bank" is derived from "Bank" or "Bancus", which means
bank. It was because few traders in Lombardy made money transactions in banks. If
a merchant's business failed, his "bank" was ruined by the people. From this
practice, the word "Insolvent" is developed. According to another opinion, this word
"Bank" is derived from the German word "Back", which means common group of
actions. Later this word "Back" was Italianized in "Bank" or "Banke".
2.2. Definitions of bank:
"Financial institutions dealing with money and credit accept deposits from
individuals, companies and companies at lower interest rates and provide benefits
that require higher interest rates."
The use of customers to invest in investment funds of financial institutions,
according to the requirements of interest payments, exchange of currency and so on.
2.3. Brief banking history:
The agreement on the origin of the word "bank" has not yet been reached. Some
authors argue that the word comes from the word "Bancus" or "Banque", which
means a bench that further moves the bank business with Lombardy Jews. Other
authors said the term "bank" was derived from the German "back", the "stock fund",
which was later converted to Italy by the German occupation of Italy as a "bank".
2.4. Evolution of banking in Pakistan:
The first phase of the banking sector in Pakistan is a very difficult day for the
banking sector in general. In 1947, almost from the start, banks and financial
institutions across the country have a variety of economic needs.
In relative terms, the Pakistani region is relatively well established in 2012. In
March 1947, regular banks in India had 3496 offices, of which up to 487 were now
in the region of Pakistan.
The Reserve Bank of India is the central banking institution in India. At the time of
the split, it was decided that a smooth transition should continue to operate in
Pakistan's emerging countries until 30 September 1948.

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In 1947, the banking industry suffered deep losses due to uncertainty and
insufficiency. This has a harmful impact on bank services in Pakistan. The registered
bank in Pakistan is transferred to India. India's banking business closed rapidly. As a
result, the 487 pre-independence branches had fallen to just 195 branches before
June 30, 1948.
2.5 History of National Bank of Pakistan
National Bank of Pakistan was built up on November 9, 1949 under the National
Bank of Pakistan Mandate, 1949 so as to make do with the emergency conditions
which were produced after exchange gridlock with India and diminishing of Indian
Rupee in 1949. At first the Bank was built up with the target to stretch out credit to
the development segment. The ordinary procedure of setting up a keeping money
organization under the Organizations Law was put aside and the Bank was set up
through the declaration of a Statute because of the emergency circumstance that had
created with respect to financing of jute exchange. The Bank started its activities
from November 20, 1949 at six imperative jute focuses in the East Pakistan and
coordinated its assets in financing of jute trim. The Bank's Karachi and Lahore
workplaces were in this way opened in December 1949. The idea of undertakings of
the Bank is extraordinary and particular from different banks/budgetary
organizations. The Bank goes about as the operator to the State Bank of Pakistan for
taking care of Common/Government Receipts and Installments for their benefit. The
Bank has additionally assumed a fundamental part in financing the nation's
expanding exchange, which has extended during that time as broadening occurred.
The different stages through which the bank went have been examined in an
arrangement underneath:
2.6 Formative Phase 1950’s:
At the point when NBP was first framed it had approved capital comparable to the
measure of Rs. 60 million. In 1950 offers of the bank were likewise glided and taken
up and by 1951 NBP had begun outside trade business. The law that was sat back of
introduction of NBP was adjusted to incorporate customary business managing an
account business also and by 1952 it was felt that the improvement of NBP was
enormous to the point that it ought to be considered as the go between of State Bank
of Pakistan. Subsequently by May of 1952 NBP had assumed control over the
Administration treasury work from the previous specialist, honorable Bank. The

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development of NBP was very clear by 1959 when it had 129 completely working
branches when contrasted with the small 17 out of 1950.
2.7 Period of Expansion 1960’s:
After the fast growth of the 50‟s NBP worked to established itself as a sound and
stable bank in the 60‟s. The development efforts were put into force during these
years and advertising efforts were made to target specific market segments. For
example NBP heading for its interest towards popularizing schemes among school
and college students, manufacturing workers, and ladies. Under the School and
College Banking scheme, introduced in 1962 all branches of NBP performed School
Banking in the place of selected schools. By December 1969 NBP had 720 branches,
713 at home and 7 in foreign countries.
2.8 Nationalization of banks (1974) in Pakistan:
On January 1, 1974 National Bank of Pakistan along with 13 other programmed
Pakistani banks was nationalized by the announcement of the Banks Nationalization
rule.
After eighteen months, the legislature will nationalize the saving money framework,
the primary goals are as per the following.
• Enable the administration to benefit from the capital of few rich brokers and
accomplish the fast improvement of the national economy and the more pressing
social welfare objectives.
• Distribute a reasonable notoriety for various classes and districts.
• Coordinate keeping money strategies in every aspect of conceivable joint
exercises without dispensing with the quality of banks.
2.9 Challenges and New Initiatives: 1990’s-2007:
With the ecological development of its branches, NBP has possessed the capacity to
take administrations to a considerably bigger number of Pakistani's everywhere
throughout the country. Today it has in excess of 5 million records. It keeps up a
nearness in all the principle monetary focuses of the world through its 24 abroad
branches and 7 agent workplaces. In 1995 NBP turn into the primary bank in
Pakistan with a store base which crossed the Rs. 200 billion stamp to end up the
greatest money related establishment in the nation. Add up to stores of the bank have
since ascended to Rs. 362 billion by end December 2004, and 2008 aggregate store
395768. NBP keeps on giving help of administrations like Hajj administrations,

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gathering of service charges, paying of stipend to focal/commonplace government
beneficiary, and also to regular citizen military beneficiaries and the individuals who
resigned from armed force staff.
2.10 Islamization of banking:
Another significant development in the history of the banking system in Pakistan
was the implementation of an interest-free banking business for specific commercial
banks on 1 January 1981. then, to eliminate interest from the National Trust Fund
for Investment, Pakistan Housing Construction Finance Corporation. Some changes
were made in the banking subdivision and other laws aimed at introducing a new
banking system that would confirm sharia. Announced the New Ordinance 1980 in
Fadoado Laba.
All independent state-owned commercial banks have started operating the free
counter, and free counters have been operating in all state-owned commercial banks.
The National Bank provides funds to participate in the term certificate, as well as
promissory tickets supported by the Modaraba certificate.
In order to cover interest-free transactions, certain bank definitions such as creditors,
debtors, advances and deposits are revised. requirements on the form of business
that may be involved in a banking company may have been modified to provide
interest-free loans to members and due students.
2.11 Interest free banking:
On February 10, 1980 the Administration of Pakistan declare three year anticipate
the execution of an Islamic Monetary Framework. The standardization of Zakat and
presentation of premium free keeping money were the two most critical measures
coordinated to Islamize the economy. The framework was presented by the
nationalized business keeps money with impact from January 1, 1981. National
Bank of Pakistan advanced and presented a totally discrete and exhaustive technique
for saving money under this framework from branch level to Head office. Alongside
improvement exercises of the bank, joining of branch organize was sought after.
NBP chose to assign authoritative and budgetary forces to significant Workplaces
and Zonal Workplaces.

2.12 Organizational chart of bank:

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 BOD

Executive Board

CEO

Divisional Chiefs

Provincial Chiefs

Circle Chiefs

Annual
Branch Report (2016)
Managers

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2.13 NUMBER OF EMPLOYEES IN NBP:
The NBP has lower in rank which is known as the “Kissan Support Services
Limited”. It was incorporated as owned subsidiary of the NBP that function
independently effective from 1st January 2006. The KSSL is a separate and distinct
legal entity that is controlled by the NBP. The KSSL has an authorized capital of
Rs.100 million. Its aim is to provide a support to the management of the NBP such
as to focus on core banking business and assign non-core activities. The KSSL
operates under the Memorandum and Article of Association.
The KSSL has recruited and developed support staff of following table categories in
NBP, Head Office as well as in field offices;

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2.14 Regional offices:

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Source (Annual Report 2016)

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 2.15 NBP retail products:
1. NBP Advance Salary
i. Fifteen months bring home pay rates ahead of time.
ii. Minimum documentation.
iii. Repayable in 5 years.
iv. No handling charges, no securities, no ensures and no protection.
v. Mark-up charged at 11% for each annum on lessening balance technique.
2. NBP Saibaan:
i. The repayment period is 3-20 years.
ii. Loans up to Rs. Ten million.
iii. Marker options are fixed / floating available. The price is between 10%
and 15%.
iv. Minimum approval and payment time.
3. NBP Karobar Scheme:
i. Financial services for non-employed citizens of Pakistan between the
ages of 18 to 40.
ii. The maximum limit is R.s 200,000.
iii. Repay in 2 years and 5 years.
iv. Women are also eligible.
v. During the financing period, the first year receives 6% of the annual
income and 2% of the KIBOR.

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 4. NBP Kisan Dost:
i. For farmers to provide production, development purposes, the
purchase of tractors, pipe wells, the purchase of seeds, fertilizers,
pesticides, etc., and the purchase of farm tools, loans, for the
construction of warehouse construction loans for livestock, and so on.
ii. Interest rate 13% per year.
iii. Farmers can get loans at the doorstep.
iv. Loans can be used for agricultural equipments, gold jewelry and
paper security.
5. NBP Student Loan Scheme:
i. Funding of Pakistan selected / HEC approved university students.
ii. All eligible female college students conduct specialized studies.
iii. Minimum files.
3 Departments at NBP:
There are several basic principles that are used as an organizational base:
functionality, products, processes, geography and clients. The process of dividing
individuals into separate units and departments in order to achieve the organizational
goals and objectives is called a department.
In the NBP, the departmentalization is done in only functional way, in the form of
departmental functions, people and resources with common supporting activities are
grouped together.
Some of the important functions of NBP are discussed in the next section.

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4 General banking departments:
Types of Bank Account:
i. Saving Account:
This is an account which the customers deducts his excessive money of his daily
expenses.
The account can be operated by depositing the minimum cash for Rs. 5 / -. A small
portion of the acceptable interest in the balance.
ii. Current Account:
The current account is checked once a day by the customer and is usually operated
by a business person. It can run at least the rupee. 500 / -This account is not allowed
to use interest.
iii. Joint Account:
A shared service happens when two clients have one record.
The gatherings to a shared service are considered in law as they are one individual.
iv. Profit and loss Sharing Account:
This can be worked by individual, company or association by saving Rs. 100 / - or
higher. The holder of this record will get the benefit of its amount, or it will bear the
misfortune in general. Then, an individual is similarly a member in benefit and
misfortune.
The registration holder can withdraw Rs. 15,000 / - each month there are eight
withdrawals, in the event of a higher withdrawal, notification of seven days before is
very important. This register is working under a framework free from intrigue.
v. Fixed Store Account:
In this record sum is kept into the Bank for a settled time frame. The settled period
might be three months, a half year, one year, two years, five years and the six years
is the limit. At the season of working on account the Bank issues store endorsements
for the period. The record holder cannot pull back his sum before the fixed period,
but rather a similar Bank will permit advance against that authentication. Bank is
obligated to give enthusiasm on this record on development date.
2.16 Advances department:
The advanced department deals with all financial accommodation and credit
facilities. The deposit is a loan to both parties; the quantity may be small or large.

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These parties can borrow through the specified procedure, the parties show all the
assets, and then the bank 14% interest rate loans.
The bank to the National Bank of Pakistan to pay 10% interest, the remaining 4% of
the interest should be the bank's profits.
2.17 Major Functions of Advances:
 Funding exports and importing countries.
 Provide funding for industry, trade and agriculture.
 Loans for students to get higher education.
 Loans for business people.
 Loans to farmers.
 Loans for housing construction.

Cash Department:
2.18 Procedure of Cash Receipts and Payments:
The cash department is the biggest sector in the banking sector. The Bank's basic
objective or objective is to make a profit. Therefore, from the customer to receive
money. The situation passed by the Bank is as follows:
i. Token:
The payment is only for the token. The token is issued by the staff member. These
branches have the existing token library stamped with their own branch code. When
the cashier pays the tokens, he ensures that the code number next to the token
number is correct.
Check the token every day by the person responsible for checking the cash and
count the number displayed in the existing stock in the furniture and equipment
register.

ii. Cash Received Stamp:

"Cash receipt stamp" is still kept by officials. The cashier cannot handle the stamp.
Only after you have satisfied yourself, the stamp will be affixed to the payment slip
or voucher, and the cashier or voucher received by the cashier or the agent who
received the cash.

17
The appropriate sign displayed on the cash counter of the branch clearly shows to
the depositor that the cash receipt will be invalid if only one signatory is signed. The
depositors thoroughly check the cash deposits they receive, which have two
authorized signatures.
Where there is no branch of the cashier's hand that the stamp is still kept by someone
other than the person receiving the cash. In the afternoon, this stamp is safe with the
cash on hand.
The records in the receiving cashier are traced by the person in charge of the cash
receipt stamp in accordance with the figures in the voucher or the arrears in the
payment slip.
iii. Receipts and Payments:
Before the payment of all checks, the cashier or payment officer himself confirms
that the check has been officially released, supervised and canceled by the
authorized person, and the manager or assistant manager is responsible for checking
the cash and verifying the total receipt and payment of the cashier's book.
iv. Saving In Cash-Checking Thereof:
The Supervisor or the official who controls the money verifies the trade physically
the night before the trade is saved.
Free and unsealed notes from all sections and additional notes sewn from Rs. 100 / -
the division is physically posted. In addition, the number of glued packages and the
coin-containing stationary bags are properly checked and the money position is
counted before the trade is covered. It is the moral duty of the Administrator and the
Sub-Supervisor to see that, until such time as the trade is sheltered, an Officer will
remain dependent on the branch. The hours of the branch of the official ship were
resolved in such a way that not less than one officer stays in the branch until the
trade is secured.

At the moment the clerk goes to lunch, be safe: in the money legitimately and do not
leave it in his drawers or in the box. All branches are granted the authorization of the
furthest point to save money. No branch is allowed and you are entirely prohibited
from keeping the excess money to your recommended restriction.

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 v. Defective and Cut Notes:
The bank does not issue bad bills to the NBP branch and receives sufficient fresh
notes from the National Bank of Pakistan to meet specific customer and general
public requirements.
vi. Cash-In-Transit:
Cash is accompanied by a professional officer and cashier when cash is provided to
the branch office or when excess cash is withdrawn from the branch office. The box
containing the cash is locked. Whenever the van is moved from the van to the
branch the gunman with cash and fire arms, as the gun stands at the guard for some
distance, may cause any robbery to fail.
vii. Excess/Short Cash:
If the manager finds that there is too much cash, then the manager of the bank have
to balance the amount of money to cashier. In this case, the excess account is
deposited into the grocery deposit account with a credit token.
If any claim is received by the branch, it shall be paid to the claimant by
withdrawing the entry of the miscellaneous creditor's -account after thorough
review.
A similar situation is that if the cash is short, then the branch debits the debit account
through the miscellaneous bond. Short-term cash is immediately reported to the area,
and the entry of the late debtor is reversed in accordance with the instructions of the
regional office / headquarters.
viii. Cash Balance Book:
A detailed record of the daily cash balance and the denomination of the instrument is
recorded in the cash book by cash check and cashier and manager.
In this regard, the branch indicates that the cash balance book should be kept in the
locker and key in the steel cabinet and shall not be retained in the cash safe of the
branch office. The formal memorandum of such cash balance signed by the manager
is also prepared and attached to the general voucher of the branch.
3 Foreign exchange/department:
1. Foreign Remittance Dealing:
For the convenience of home remittance customers, the National Bank of Pakistan
has adopted a series of measures to improve family remittances through the banking

19
system, in line with SBP directive / instructions, timely and timely remittance to
beneficiaries
2. Traveler's Cheques:
NBP's all 700 branches offer rupee traveler's checks. This can be honored in all 400
branches of NBP. There is no limit to the purchase of this check. It is one of the
safest ways to carry money.

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 CHAPTER -3
HUMAN RESOURCE MANAGEMENT

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3.1 Human Resources Planning Of NBP:
Human resource planning effort are directed toward hiring skilled employee who
perform effectively in their position with minimal supervision, demonstrate the
potential to expend their skills and knowledge. NBP humanitarian and develop those
who perform their tasks effectively and efficiently. It is NBP rule to encourage the
employees with the passage of time to bring changes in their behavior for higher
level of performance.
3.2 Recruitment:
Recruitment is a process of attracting qualified personnel to apply for an open job.
Since the National Bank of Pakistan is a state-owned bank, it is possible to advertise
vacancies that can be filled through the news media.
The choice of selection depends on the position to be filled. The required
qualifications and age are specified in the advertisement. There should be related
knowledge, skills and ability to perform a specific task .
3.3 Selection process:
Selection process is divided into following steps:
3.3.1 Short listing of the applicant:
The bank management examines the candidate's application and meets the required
candidate to send a test notice. In the first step, tens of thousands of candidates apply
for limited positions. The call is sent by the headquarters to the candidate who only
meets the advertising job requirements.
The tests are conducted by the Pakistani Banking Council under the supervision of
the Pakistani Banking and Finance Services Committee. Where, the successful
applicants are further include in a new list.
3.3.2 Personal Requisition:
A request for needed personal will be submitted by the hiring project manager to
admin/Finance department. HR will make sure that the request is accepted by the
Executive Director after the review of the Finance Director. No recruitment process
will take place until the above mentioned approvals have been obtained. Any
position will be needed to be approved by two levels of authority’s i.e. Direct Line
Manager and Executive Director.

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 3.3.3 Job Description:
All personal requisition forms need to be attached with an updated and approved job
description. The job description must be including the following information;
Title, location, supervisors title, purpose of position, major responsibilities, required
knowledge skills and abilities. The job description needs to be signed by the
employee during the hiring / orientation procedures.
3.3.4 Vacancy Advertisement:
All vacancies will be advertised in the local community i.e. (HR network,
newspapers etc), internally among the staff and other zones simultaneously. Current
employee if he or she interested and qualify, can also apply for the position. HR will
work closely with the hiring managers in collecting and short listing CVs and
determining the place of interview.
3.3.5 Application Forms:
Applicant must submit a CV with accurate and true information, after the closing
date submitted CVs will be reject, incorrect information on the CV will lead to direct
termination of agreement.

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 1. Interviews:
For interviews, just those hopefuls are known to meet all requirements for composed
examinations. Hopefuls show diverse sorts of inquiries to the meeting board, for
instance:
• Questions about individual foundation, extra broad exercises amid
instruction, and individual contact.
• Questions about the subjects or courses examined by the candidate.
• Questions about vital national and universal occasions.
• The part of managing an account in the monetary circumstance.
2. Merit list:
After the end result, they will send a contract letter to successful candidates asking
them to sign a agreement with the bank.
signing of contract:
After the completion of pre-employment requirements reference check and the
approval of post offer, the selected person is required to sign the employment
contract and is invited to an orientation meeting, payment of salary is dependent
on the signing of the employment contract.
3.1. Staff Training and Development:
NBP bolster the preparation and advancement of staff to give them to assume on
greater liability and to enhance work abilities. Preparing is natural and progressing
procedure of NBP.
Preparing and advancement needs might be distinguished through Execution
Examinations or through changes in prerequisites or positions. Extraordinary
preparing needs will be distinguished by line director and HR with the end goal of
staff improvement and coordinated with preparing openings accessible relying upon
stores.
Preparing is an imperative and important movement in all associations. It assumes a
major part in deciding the viability and proficiency of the business. Preparing is a
sorted out methodology through which individuals can learn information and
abilities for a reason. The objective of the preparation is to accomplish an
adjustment in his all around prepared conduct.
Understudies take higher positions in their professions and in this manner take in
more obligations.
Banks urge their authorities to go to bank classes in Pakistan and abroad and to
emphatically ingest new ideas and their application in our condition.

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3.2. Separation:
It means that employees can terminate their service with NBP at any time and NBP
can also dismiss employees at any time according to the laws of the Government of
Pakistan. These policies contain guidelines and procedures on the circumstances in
which an employee can be separated from employment with NBP.
1. Voluntary separation (resignation) process:
The individual from staff are asked for it give one month composed notice of their
web of leaving to their managers. In the event that they neglect to do as such, one
month pay will be deduct from their last installment under exceptional conditions
the Official Executive has the privilege to forgo off the notice time frame.
Administration will favor in composing the renunciation and affirm last end dates.
The marked acquiescence letter will be specifically submit to HR office.
2. Involuntary separation process:
There are various sorts of automatic detachment; these incorporate cutback because
of end of program, quick discharger rejection, and proceeded with exercise of
disciplinary activities, work deserting and failure to satisfy the prerequisite of the
position. Every single automatic partition require composed documentation from the
immediate manager or administration to help the choice to isolate the representative.
The composed documentation should be submitted to the following level of
administration and HR office. Once the demand of division of a representative is
endorsed by the level of administration and HR office, HR will continue with the
partition techniques.
3. Lay off :
Lay off include on the following reasons;
 Lack the plan of funding
 Natural catastrophe or insecurity.
 Organizational or program restructuring.
 Unexpected salary.
 Salary up to last day worked.

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 4. Job Abandonment :
Employment Deserting happened when a specialist neglects to accomplished work.
NBP has the privilege to end laborer promptly in light of occupation relinquishment.
Advantages because of representatives that are ended, given an immediate release or
expel or relinquishment their activity and surrender pay to a day ago working.
5. Termination based on unsatisfactory work performance:
The chief may end a specialist contract for unsuitable disposition, lead or
unsuccessful to perform as per the set of working responsibilities, or inability to take
after NBP methodology and work gauges. Coordinate administrator can ask for the
partition of a representative in view of inadmissible work execution, in the event that
they can give composed documentation (singular execution assentions, execution
improvement design, execution evaluation, cautioning and so on) that the execution
administration and restorative activity strategy will altogether take after.
3.2. Transfer policy:
A change is the work of an employee from one job to another or from one branch to
another branch. In addition to moving from one job to another, it may involve
promotion, demotion, or no change in working condition. There may also be two
types of transfers under the NBP employee's request.
1. Inter transfer policy:
NBP management often transfers workers from one place to another regularly adjust
managers to improve their management skills. In some cases, effective workers are
send to poorly performing area.
2. Inter departmental transfer:
Interdepartmental transfers involve branches from one department to another. The
purpose of this is to promote the staff to make it more comprehensive.
3.3. Promotion policy
Promotion cannot be based on ratings, but on performance. The main criteria for
promotion are performance and personal skills.A person's career is a very important
element of life. If these individual decisions are based on an objective assessment of
current and potential competencies, productivity and morale can be promoted.
Promotions is a term that covers the changes, which require greater responsibility,
usually with higher pay, better terms and conditions of service and, therefore, a
higher status.

26
The various purposes of the promotion are:
a. Provide satisfactory service to employees who deserve promotion.
b. Enhance experience and ability.
c. Provide computer workers to the organization.
d. Find the best and the right candidate.
e. Increase their interest in the field of speed.

3.4. Salary Administration:

Staff salaries are paid once in a month, usually at the end of the month or the first
day of next month. Nevertheless, if a staff member needs his/her salary in urgent
situation during the month, for the day he/she worked. Payment of salary of those
days will be considered. The same amount will be deduct from the salary at the end
of the month.
1. Salary change:
Pay changes can incorporate; compensation increment, pay modification, pay
finding, new pay in light of new place or any adjustments in the current position.
Pay modification are connected to all pay runs as the result of pay overviews and are
allowed to all staff in view of the Official chief's choices. Staff is educated about pay
alterations utilizing email by the HR. Just alteration letter will be issued to each staff
about saying the progressions. Pay raise in view of legitimacy might be allowed to a
staff part in acknowledgment of his/her abilities and capability in the execution of
his/her obligations. Pay raise will for the most part occur once every year and it must
be bolstered by a decent execution evaluation, accessibility of financing, spending
plan in the separate task, The HR office will acquire endorsements from Official
Chief or his designee and issue an alteration to the understanding letter.
2. salary in advance:
NBP will allow for up to one month salary, to be repaid through salary deductions
over two months, in the occasion life illness or death in the family. This allowed
only to those staff members who are permanent. The request for one month salary
advance will be required to be approved by the Executive Director.
3. Sick leave:

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 Workers are permitted to 12 wiped out leave days per contract year if there
should arise an occurrence of disorder. For low maintenance representatives or
contracts for short of what one year debilitated leave will be ascertained for one
day in a month. Wiped out leave for at least two than two successive days will
be finished by a therapeutic endorsement. For debilitated leave over 12 days for
each year contract workers will utilize their yearly leave days or leave without
pay. Representatives will fill the leave ask for ideally preceding take wiped out
leave, if there should arise an occurrence of sudden ailment they will advise the
immediate administrator and HR division utilizing the telephone till 12 o'clock
that day and fill the demand shape the primary day they come back to work.
Leave ask for must be endorsed by coordinate boss, observed by HR office. On
the off chance that worker surpass the 12 days contract year restrict, the wiped
out leave days taken additional will be thought about either yearly leave days or
leave without pay. Debilitated leave days not are exchanged to the following
year as these are identified with the possibility and the affliction of the separate
year. If there should arise an occurrence of partition untaken wiped out leave
isn't remunerated in the last installment.
3.5. Compensations:
1. Bonus:
Bonuses really help encourage workers. Bonuses based on the bank to earn profits in
each year. The bonus paid to workers is a regular function of the bank policy.
2. Provident fund:
All employees should pay 7.5% of the salary to the provident fund.
3.6. Allowance:
Special allowances for holders of staff allowances are of various types:
1. House rent allowance:
The bank has built many colonies in different places to provide housing facilities for
its employees. The rent of the house will be reasonable for their employees.

3.7. Staff loans:

The bank provides employee loans based on service terms and employee
qualifications.

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NBP offers two types of loans:
1. House Building Loans:
Provide basic housing to employees. Only part of the wages. When they complete
the installment, they become the owner of the house. Loans can be easily acquired
for building.
2. Conveyance Loans:
The bank also provides transshipment land to their staff in very simple and
convenient terms and conditions. The staff member gets the loan to buy the vehicle.
The repayment process for these loans is simple.

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CHAPTER 4
SWOT ANALYSIS

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31
 SWOT:
SWOT is an abbreviation for organizational strength, weakness, opportunity and
threat. SWOT analysis includes determining the company's internal strengths and
weaknesses and its external opportunities and threats. This is a tool that can quickly
understand the company's strategic situation. The SWOT analysis of the NBP branch
is as follows:
4.1. Strengths:
 NBP is one of Pakistan's oldest banks; therefore, people have greater
confidence in the bank.
 This is the only bank that offers loans for gold jewelry.
 NBP has more deposits and more confidence.
 Arrangements of facilities to customers.
 Online banking is also strong factor of success for NBP.
 Branch staff are motivated to make it one of the best affiliates.
 Comfort and sustained business.
4.2. Weakness:
Major weaknesses are
 Promotion mostly depends on seniority.
 Marketing efforts does not exist.
 NBP is under political and bureaucratic pressure.
 Partiality and nepotism in appointments, assignments, promotions and
increments.
 More gap and distance in branches.
 According to the regulations, no rotation is allowed.
 Investment plan lacks interest.
 Poor quality of service due to lack of staff and poor quality during peak
hours.
 NBP lacks a computer network.
 Less important global presences as compare to other competitors.
 Limited credit opportunity to low risks profiles.
 Delayed decision making.
 Remark The counting machine is not available.

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  No use of IT tools. Such as computerized and ATM facilities.
 Unequal distribution of work
 Employees lack training in important areas of day-to-day activities.
4.3. Opportunities:
Unable to control but can take advantage of the positive external conditions of the
NBP as follows:
 Most of transactions of NBP are internationally.
 NBP must offer free staff training for guiding their workers.
 Potential for growth in Islamic industries.
 Opportunity to grow in Middle East and Europe as well as Africa.
 Opening of new branches in rural place which cover at high level.
 New marketing plan for investing in new projects.
4.4 Threats:
Some of major threats are following:
 Economics and political condition of Pakistan. It fluctuates too much.
 Pakistan market is mostly occupied by foreign business it is also threat for
NBP.
 Minimum interest rate offered by others competitors in market is also a
threat.
 Slowdown in world economy.
 Competition from peer banks.
 Inflation.
 Discount rate.

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 CHAPTER -5
FINDINGS AND RECOMMENDATIONS

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 FINDINGS AND RECOMMENDATIONS
After sitting and working for eight weeks, sensible experience learned a lot about the
bank and built very few discoveries that were learned about the bank. My
conclusions on the unity of the banking area are a bigger government. The NBP
sector bank has the potential to travel for the future. You just have to do things, the
approach that needs to be done. NBP is one of the oldest banks in Pakistan that
serves well the individuals of Pakistan and creates their sense of presence
throughout the country if its mountains, deserts, so many rural areas or any
geographical area are its branches everywhere. Pakistan may be a developing
country and the state is a basic reason for its poor monetary status, however NBP
has used numerous people within the country, which is a good half within the
economy of the Islamic Republic of Pakistan. Compared to the alternative
organizations available by the Government. It is a highly developed and profitable
organization.
 The only bank to negotiate in Govt. Workers.
 One of the oldest banks in the Islamic Republic of Pakistan.
 Great national participation in the stock market.
 Serve in most of the country's components.
 Elements of the corruption area unit within the bank.
 Be a government. Organization, Govt. He is not doing anything for the
betterment of the bank.
 The HRM system has flaws, which hinder the recruitment of deserving
candidates.
 Employee behavior with customers is an acceptable global organization.
 Problem area unit with Govt accounts. Servants and not be treated
effectively.
 Political interference is still damaging the name as lowering its market
share.
 The workforce is not as competent as it should be.
 The human resources force is not well trained.
 Use of recent banking systems.
 Lack of contemporary instrumentality and technology.

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 5.1. Recommendations:
 Government ought interested in this bank as a result of improving within
the policy and law of the unit that govern the bank.
 The most major is that the appointment should be made to benefit.
 Promotion should be for those employee who should be promoted.
 Performance dimension techniques should be introduced and staff should
be promoted on the basis of good performance.
 External interference must stop fast, as a result of having already done
so, associate an excessive amount of damage to the name and services of
the bank (political interference at the time of job selection).
 Use of the latest technology should be done quickly.
 Employees should be trained and have knowledge with modern ways in
which and how.
 Manual work should be kept to a minimum.
 Employees must behave correctly and follow the code of conduct.
 There should be a compliance system for staff.
 Equal employment opportunities.
 The commercialization of the number of monotheism of the NBP should
be improved.
 Defects within the system should be eradicated as soon as possible.
 The workload must be divided by new victimized people.

5.2. Discouraging Political Interference:

Since NBP is a government owned bank acting as an agent to the government of
Pakistan, interference of the government in the bank is very much there. The
political interference in the Bank needs to be stopped so that the top hierarchy as
well as the personnel placed at other important levels of the organization is not
change just on political grounds and the ongoing developmental work is not
obstruct. It will enable the management to formulate long term strategies and their
proper implementation, because long term policies accurately based on calculated
risk have provided a key role for organizational sustainable development.

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With a specific end goal to enhance the current managements, the accompany strides
can be taken:
 Increase in number of ATM machines.
 Elimination of check book charges.
 Elimination of bank administration and coincidental charges.
 Lots of change in the NBP Site.
The accompanying are a few recommendations for new administrations:
 Payment of checks in any branch all through the country.
 Customer helpdesk office at all branches.
 House Building Fund Advances at lessened loan fees
 Car Financing Plans at lessened loan costs
 Introduction of Web/Web based managing an account
 Introduction of Phone managing an account.
5.3Better Working Conditions:
The workers have to work for a longer time also. The empty places affect their
efficiency at work. It is recommended that better working environment should be
provided for effective and efficient result. A good environment should be created
because it will help to gain the interest of employees in work. Noise in the office
should be reduced for the reason that it has unfavorable impact on the working
surroundings. A separate place or section should be created for each separate task
and more space should be provided. It would also better help in the organization of
environment.

5.4. Improving target market:

Another approach to enhance the objective market of the bank is by successfully
promoting. The bank needs to bring a more up to date picture through broad
communications utilizing TV, Web, daily newspapers and so on and by accepting
powerful promoting groups, who are well ready to persuade.
1. Corporate Customers
2. Small entrepreneurs
3. Partnerships
4. Other Associations
5.5. Recruitment of Qualified Staff:

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The bank needs to select higher qualified staff. The average qualified staff of
matriculate or at the most graduates. In order to compete with other top banks the
recruitment qualification to the officer’s framework should be enhanced from simple
graduation, to professionally qualified preferably masters in their respective fields.
5.6.Specialized Training:
Present employees should be trained in such a way that they can meet the
requirements of the customers so a professional approach should be developed. The
employees should be give special training and they must be give information about
the banking and accounting rules and regulations regarding certain departments of
the bank. Also the employment of new personnel which meet the modern banking
requirements and possess quality education in related fields is beneficial to the
organization.

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