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Submitted To: Najeeb Ali Khan Submitted By: Iqbal Sadiq FA10B-7B.

O68 CIIT SWL 3rd Semester NATIONAL BANK OF PAKISTAN (Gulgasht Branch Multan)

COMSATS Institute Of Information Technology. Sahiwal.

ACKNOWLEDGEMENT First and foremost all praise is to Almighty Allah to give me the courage and patience to carryout this responsibility successful. Then I lovingly thanks to my parents who always are there for me in every condition and any circumstance. In the end specially thank to my Advisor under their good guidance, I performed my task very well. Iqbal Sadiq

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Table of Contents

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EXECUTIVE SUMMARY This internship report on the NBP Gulgasht Branch Multan from July to August. In that organization I learnt about different functions which performed in the NBP. This report has four major portions these four portions based on my learning. In this branch I worked in different departments which are credit, account opening, foreign exchange, and Government section and in General Administration. I worked in credit department. And learnt about lending procedures for general customer employees of the NBP. And in credit department products are also giving on leasing and then mark up is calculated on daily bases and data entered in computer. In foreign exchange department Experienced is occur by me about instruments of remittances which are used for sending of amounts from one country to another country which are Pay order, Telegraph, Demand Draft and other instruments. In account opening, I learnt about the procedures of the account opening which are saving, term deposit and current account. These procedures of these accounts were different for individual, joint, proprietorship and partnership. Last week is spent by me in government section They provide good services but there is lack of technology than other banks. One week is also spent by me in Human resource department, in this deptt. Performance appraisal forms are discussed, salary disbursement, loan issue to branch employee is approved in HR-department. Last week is spent by me in government section. Due to that department the NBP has different position than other banks. Finally, I am thankful to entire management of the NBP who gave me chance to work with them and provide opportunity to learn functioning of the NBP.

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1.1 History of NBP: The NBP was establishment in 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 the 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. The Bank in 1950 had one subsidiary The Bank of Bahawalpur on December4, 1947 by the former Bahawalpur State.NBP was undertaking Treasury Operations and Managing Currency Chests or Sub Chests at 57 of its offices where the turnover of the business under the head amounted to Rs.2460 million. Deposits held by NBP constituted about 3.1% of total deposits of all Pakistani Banks in 1949, which rose to 38% in 1952. Growth in Deposits was accompanied by increase in Bank portfolio in agriculture and commerce. NBP advances reached Rs.554.4 million by December 1959, which was one third of the total schedule bank credit. The government of Pakistan has also liberalized the exchange and payment procedure. The Pakistani firms and companies can now maintain Foreign Currency accounts in Pakistan on the same bases as known Pakistanis. The National Bank of Pakistan was established on 1949,to serve as an agent to the SBP. advances. NBP lent out to Textile, Yarn, Iron and Steel and played a pioneer role in support of

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1.1.1 Financial highlights of NBP 1950 (1st Year of operation) Total Assets Deposits Advances Investments Profit No. Of Branches No of Employees Rs in Million 120 56 49 49 0.3 17 390

Now in 2009-10 NBP expand their business, growth, share and infrastructure. (60th Year of operation) Total Assets Deposits Advances Investments Profit No. Of Branches No of Employees Rs in Million 944,233 726,465 475,243 217643 18,212 1,287 16,248

1.2 Vision Statement: Page | 7

To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility. 1.3 Mission Statement: NBP will aspire to the values that make NBP truly the Nations Bank, by: To deliver & develop the most innovative product, manage customer experience deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank. 1.4 Core Values: Highest standard of integrity Institutionalizing team and performance culture Excellence in service Advancement of skills for tomorrows challenges Awareness of social and community responsibility Value creation for all stakeholders 1.5 Goals: To enhance profitability and maximum of NBP share through increasing leverage of existing customer base and diversified range of products.

1.6 CORPORATE INFORMATION: Board of directors: Page | 8

Syed Ali Raza Muhammad Ayub Khan Tarin Mian kousar Hameed Ibrar A.mumtaz Tariq Kirmanee Haniyq Shahid Naseem Nazrat bashir Audit Committee: Chairman: Ibrar A.Mumtaz Mian Kousar Hameed Tariq Kirmani Auditors: Anjum Asim shahid Rehman & Co. Chartered Accounts M. Yousaf Adil saleem & Co. Chartered Accounts Legal Advisor: Mandviwala & Zafar Advocate & Legal Consultants Registered & Head Offices: NBP Building I.I Chundrigarh Road, Karachi, Pakistan

1.7 Introduction of NBP Branch Multan

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Multan is an old and important city; NBP opened as a sub branch in Gulgasht colony Gulbagh Multan. Now NBP has more than 25 branches in the city and more than 50 branches in District MULTAN. Gulgasht Branch is known as the sub branch. This branch provide the services to the customer like

Advance salary Pension Advances NAFA Mutual Funds Railway pension Deposits Western union Remittance ATM card

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2.1 Organizational Structure:

Chairman Board of Directors President Vice President Regional Chief District Manager Branch Manager Operation Manager

Clerical Staff

Officers

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Gulgasht Branch Hierarchy: Fig 2.2: NBP Gulgasht (chart Branch Manager Madam Mehreen

Operation Manager Malik Amir Clearing Depart Madam. Hira Remittance Depart Mr. Asgher khan Compliance officer Mr. Faheem Cash line depart Mr. Malik Nazar Credit Depart Madam. Sana

Account opening Mr. Shakeel Nawaz

The branch manager answer able to the main branch of the NBP. The operation manager and credit officer are also answer able to the operation manager but some time operation manger can ask about the work and all others department answer able to the operation manager. The compliance officer can answer able only to the branch manager, in any case of occurrence otherwise he is only answerable to the regional chief officer.

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2.2 SWOT Analysis: 2.2.1 Strengths: 2.2.1.1 Public Confidence: NBP is the oldest bank of Govt. of Pakistan. There are very small chances of bank corruption. So, more and more people deposit their amounts in NBP. 2.2.1.2Railway pension Only this branch gives the railway pension fund to the customers and also others funds like (Education funds, LHV funds, and Benazir funds) 2.2.1.3 Highly Qualified Staff The staff of NBP Gulgasht Br. is very highly qualified and young male and female. The behavior of the staff is very good with the client. All the staffs perform the responsibilities with efficient manner and cooperate with each other. 2.2.1.4 Total Govt Bank Most of the people trust NBP bank because this bank is totally Govt bank 2.2.1.5 Large Network The network of NBP is large than that of others Bank because where the SBP does not deal than NBP deals there. I n Multan city 20 branches are there and more than 50 branches in all over the division. 2.2.1.6 Highest Profitability: NBP give profit on their customer deposits as their amounts are increases. 2.2.1.7 Vast Operational Network: There is large area network of the NBP. It has 22 subsidiaries in out of countries. 2.2.1.8 Role in Economic Development: NBP play an important role in the development of economy of Pakistan e.g. by Rozgar Scheme. 2.2.1.9 Utility bills collections: Page | 14

NBP also provide the facility of the collection of bills in Government section. But there is no any facility provided in Alflah, Mezan, Faisal Banks. 2.2.1.10 Evening Banking: NBP also provide the facility of Banking at 5:00 pm. 2.2.1.11 Efficient Home Remittances: NBP Gulgasht Branch Multanprovide fastest transfer of transaction facility e.g. mail transfer, pay order etc. Weaknesses: There are some weakness of NBP due to Govt. organization. 2.2.2.1 Poor Quality Counts Services: In NBP all branches counter services are very poor. But in Faisal Bank, MCB Banks the services are good. 2.2.2.2 Political interference When the bank makes a polices or rules and also at the time of hiring than the political party effect the polices and recruitment process

2.2.2.3 Unsatisfied customer increased It is the sub branch, it is an excessive burden due to more customers, because pension holder takes our pension from this Br. and due to rush the number of unsatisfied customers might be increased. 2.2.2.4 Parking problems This Branch is facing the problem of parking. Parking place in front of the branch is very small place, because the customers who visit qoomi bachat office and Oxford University shop are using the same parking area.

2.2.2.5 Lack of technology Page | 15

Many private banks provide the ATM facility to the customer. But NBP lack this facility provide to the customer. Only few branches provided these facilities to the customer which is the week point of the bank. 2.2.2.6 Out dated system and procedure: Due to Government organization NBP adopt old system and procedure. 2.2.2.7 Burden on Employees: There are extremely burden on the employees due to work pressure. 2.2.2.8 Poor Coordination: In NBP mostly employees not coordinate to each others. From this reason the efficiency of organization is decrease. 2.2.2.9 Poor maintenance and implementation: There is very lack of maintain of all records and there is not applied rule and regulations by employees. 2.2.2.10 Less share in foreign exchanges: The employees of the organizations not share with their customers in imports and export transactions. 2.2.2.11 Lack of resources: NBP not use the resources of organization in better way due to lack of good management. 2.2.2.12 Hard working slatt: In NBP all the employees are hard work and complete their work at the end of day.

2.2.2.13 Swift: Page | 16

NBP Gulgasht Branch Multanhas also swift system. Which is more speedy services for area of home remittances. (Society or worldwide interbank financial telecommunication). 2.2.2.14 Internet Access: BP of has its own website which provide all information about bank. 2.2.2.15 Pension and Salaries: Pensions and salaries of all Government employees are given in NBP Government sector. Opportunities: NBP has some opportunities, like 2.2.3.1 New Style Management: The NBP manage its organization in better way. 2.2.3.2 Introduce New Workforce There is a large number of MBAs, M.COM, ACCA who are unemployed; they can be hired to achieve professionalism in the organization. 2.2.3.3 Over Sees Branches NBP by establishing new branches in foreign countries can expand its business and earn foreign exchange. NBP can increase its profitability by introducing lease finance. 2.2.3.4 Chest branch Where SBP does not deal deals the bank than NBP control the system of bank 2.2.3.5 Product Range Increase the product range to meet the broader range of customer needs. 2.2.3.6 New Products and Services: NBP introduce new products every year for the public by which more and more profit is earned. 2.2.3.7 Govt. Policies: Page | 17

NBP mostly implement Government polices by which they meet business people for solving of their problems. 2.2.3.8 E-Banking: In NBP E-Banking facility is a new opportunity which flourishing business in foreign countries. 2.2.3.9 Leasing: NBP also provide products on leasing than other banks. 2.2.4 Threats: NBP has some threats.

2.2.4.1 Expansion of more Banks: By more and more establishment of banks in market the difficulties are our e.g. technology and better services. 2.2.4.2 Good Services: Private Banks provide better services than Government banks. 2.2.4.3 Political Pressure: In Government organization there is a great political pressure by which environment of organization un-stain. 2.2.4.4 Increasing Competition NBP face pressure due to increasing number of foreign and domestic private banks in Multan offering highly specialized and attractive services.

2.2.4.5 Losing Market Share

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NBP lacks the use of modern technology. Few branches of National Bank are online. This is a threat for the bank to lose market share, as a large number of customers is attracted to the other banks due to new technology. 2.2.4.6 Rapid Rate Due to rapid change of SBP rates, because the customer disturb 2.2.4.7 No Attractive Salaries: Mostly banks give more salaries their employees by which employees of NBP wanted to join those banks. Conclusion: As a main bank of government , NBP has a large strength then their weaknesses but public confidence of NBP is greater than other banks but the transaction procedure which is done in it, is not speedy due to lack of technology. And behavior of some employees of not good than other employees by which people hesitated from entrance in NBP. So they should change their behavior through management and technology. Marketing Strategies: When we talk about marketing strategies, marketing mix is an important marketing tool that an organization uses to get response from the target market. These marketing tools are also known as Four Ps. NBP target a lower income class NBP follows the policy of aggressive marketing of its products in order to encourage more and more people to become customers of the Bank. The management takes all possible steps to keep its customers informed about its new products and attractive offerings. Since the Bank targets the middle and the rich class so it has to offer such products, which are useful to them. The Bank advertises its products through various means, such as: Newspapers. Magazines. Internet Billboards Sponsorships etc. Page | 19

2.3.1 Personal Selling: NBP adopts the personal selling tools for building up the buyer preferences, conviction and action (generally the last stage of the buying process).Sales representatives are trained in developing personal relations with the prospects. And ultimately converting them into the loyal customers. They have customers best interests at heart. 2.3.2 Product The bank offers the goods and services in the market to satisfy the customer. The bank is continuously offering differentiated products and services to its customers.NBP has introduced its new product with the name of NAFA mutual funds and pension etc. western union is a new product of NBP Gulgasht branch Multan which offers branchless banking to its customers. NBP is also offering online banking services to its customers. A/c holders and non A/c of NBP can take a benefit of these services. 2.3.3 Place The NBP situated that place where the every customer can easily use the product and services of the product. NBP tries to open all branches on suitable place that customer avail it. NBP is also provide on line banking service to the customer 2.3.4 Price When customer takes some benefit from the bank through product and services. At the time of taking benefit , they pay some money in the form of interest and mark up according to the rates of SBP. NBP provides lowest rates to the customer that of competitor 2.3.5 Promotion Promotion is an important tool of marketing mix. It includes all those activities which performed in the branch and influence the customers to buy those products and services. NBP spends a handsome amount of money for this purpose and offers attractive schemes and promotional companies to boost up the sales like NBP Karobar NBP saibaan Page | 20

Advance salary 2.4 Competitive Strategies: 2.4.1 Differentiated Products NBP offer different products and services to the customer because those products do not offer their competitors. NAFA is a good example of its differentiated products. They generate a profit; customers pay their police Chelan and can takes many other benefit without opening an account in the bank. 2.4.2 Focus on Customers Competitive strategy of NBP Gulgasht Multan is focusing on its existing customer and also trying to increase the number of future customers or trying to get the number of other banks. NBP opens all branches by keeping in mind that place where the customer can easily avail it. All the staff members of NBP try to make a good relationship with his own customers. 2.4.3Cost Leadership NBP works hard to achieve cost leadership and they are offering the product and services charges with lowest charges rather than the others banks because they are trying to increase maximum number of customers. 2.4.4 Competitive Analysis: Competitive Analysis is consisting on Porters five forces model. This model is widely used for competitive analysis because it is high intensity of competition among companies there five main competitive forces. 2.4.5 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 Nations Bank. 2.4.6 Potential entry of new competitors: Page | 21

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. 2.4.7 Potential Development of substitute products: NBP is currently providing substitute products such as NBP KAROBAR and NBP SAIBAN. 2.4.8 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. Suppliers are consider most valueable assets of National Bank of Pakistan. 2.4.9 Bargaining Power of Consumers: When customers are concentrated or large, or buy in volume, their bargaining power represents a major force affecting intensity of competition 2.5 Business Operations Analysis: National Bank of Pakistan operates different business than other banks in the form of products and services which are: 2.5.1 Services: NBP Gulgasht Branch have following products and services and NBP facilities its products and with its services. Deposits: Deposits in its account as a service which is provided by the NBP. Demand deposits Time deposits Saving account Current account fixed Letter of Credit: Page | 22

The NBP Gulgasht Branch Multan provide facility of letter of transfer of amount from one country to another country. It is easy for transactions. Lockers: NBP provide another facility to the other branches and customers for safekeeping of valuable goods and documents on cheaper rate. These are mostly used for gold keeping, cash and documents. Pensions Payments: Both pensions provincially and federal are paid in NBP Gulgasht Branch Multan. NBP perform as agent of SBP. Payment of Salaries: The NBP govt. section also provide the service of the payment of salaries to the Govt. employees of every section in Pakistan. Free Remittances: NBP Gulgasht Branch Multan provide the home remittances services without any charges. And NBP provide the security of these transactions. 2.5.2 Products of NBP: The NBP Gulgasht Branch Multan provide the following products to their customers, NBP Saiban NBP Advance Salary NBP Cash on gold NBP Kisan Dost NBP Karobar

NBP Saiban: Saiban is a product of the NBP which is provided in form of cash to their customer for construction and home improvement. Loan is provided up to million. Markup choices available at rate between 9.0 to 12.85% rates. Page | 23

NBP Advance Salary: NBP also provide this product in the form of advance salary, in which 15 months salary can be provided by bank. Repayable mostly in 5 years. There is no required any guarantee. NBP Cash and Gold: NBP also provide the cash against deposit of gold in NBP Gulgasht Branch Multan. They can give Rs. 5,000/- on 104 ms gold and markup received 10% per annum. Kisan Dost: NBP also provide the Kisan Dost product in which NBP give loan to the farmers for production and development purposes. Of tractor, for installation of tube well, construction of fish ponds and mostly for milk processing and markup received on 9% per annum. NBP Karobar: NBP has developed full range of products under Presidents Rozgar Scheme with the brand name of NBP KAROBAR under this scheme, NBP will offer following products. NBP Karobar for utility stores. NBP Karobar for Mobile General Store. NBP Karobar Transport. NBP Karobar for PCO. NBP Karobar for Tele Center

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3.1 Credit Department: In NBP in Multan branch is most important because there different types of loans are provided to their farmers, small and large industry by credit department NBP Gulgasht Branch Multan received more earnings. It gives different types loans e.g clean finances and secured. Finances . clean finances is mostly used for employers and secured finances is used for the outside customer. The give loan to their employers for different purposes e.g car receiving motor cycle receiving the NBP Gulgasht Branch Multan, receiving first time markup on the finances in 1985 in January. The NBP received fixed amount on the amounts of financing. In NBP Gulgasht Branch Multan, loans are given on Agriculture, household , Short-terms and long-terms business. For this purposes credit officers received or demand the different types of securities e.g. gold, land, and building. In this branch credit department also give consumer loans which are credit cards Auto loans House financing. Banks grant credit to the customer for a certain period of time. 3.2 Principles of Lending: According to my observation for lending purpose there are some rules for lending. it is different for employers and customers in which firstly interview taken of the outside customer for credit needs. By which the bank officer can make a gusses to assess the customer character. At the time of lending NBP Multan , credit officer required something which are. For customers: Borrower should have legal capacity legally not clear loan is not issued. And then written statement of advance needs are provided by borrower to the lends. Time of advance is also mentioned by the borrower and then bankers paste the mark up cage. And then prove of business and other occupation that he can returned this amount e.g. if one borrower 150,000 loan hen these should be annual amount Rs. 300,000. At last credit re1port is prepared by bankers and attacked file and then installments are made in which amounts of are mentioned For Employees: Only on the behalf of the manager the amounts are received by credit department. Free interest loan give to their employer Page | 26

For Govt. Employees: Written application is given by the borrower with the mention the amount of lending. Authentic proof by concerned department. Photo copy of N.I.C. If employer of the same organization then loans installments are adjusted according to their dues. The power to sanctioned loans had been delegated for controlling different offices, according to amount of loan. This department is also called as risk management group. 3.3 Account Opening Department: In NBP Gulgasht Branch Multan account opening is second most important department. In this department, account open for enterprises for daily transaction and amount deposits in the NBP in NBP Gulgasht Branch Multan. Different types of accounts. 1. Current account. 2. Saving account. Terms deposit account. For daily transaction current account is provide to the customer and receive on current account is amount is Rs. 100/.On this account bank not paid any profit. And saving .the profit on PLS saving account in NBP checking account on basis of profit and loss account and it is calculated after six month. The amount should be up to Rs.500/ in saving account. And NBP also provide of time and it is not great them 5year. And the customer can with draw at the end of year our the amount. In this account the profit is given by the bank to his customer. And this profit mostly in Cash form And some time bank send a bank draft in depositor home. Or by specified mail address. In account opening I learnt about opening account procedure and issuing of check book and how close the account of customers. In NBP Gulgasht Branch Multan mostly account opened for these types of customers. Individual. Page | 27

joint customers. Partnership account.

Procedure of opening account:


Individual: For individual person and other people it is same procedure but one thing is different. Specified the types of account. Part-1 form will be filled with four similar signatures with signature of that person that have already account in NBP. And then another form (annexure-a) filled by person in which Father name (ii) complete address (iii) Phone this requirement needed due to link aeration with relations of customers in absence of person. Then signatures are our on the specimen card which placed on the same area it is called (SS Card). Authorized signature. Title of a account. If person signed in Urdu then he will fill the other which is in Urdu writing. And at last next day Account open) Joint Account: The Procedure of joint account was save to the individual account. Documentation: Following requirements are needed. NIC. Copy of both persons. Other things remaining same. Operation: It work Show the type of account. both people will fill part-1 and (II) Signatures of both persons are necessary ss-card. Name of all people writes in specified place. Specification that this account operates by one person or both.

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Proprietorship Account: This type of accounts is opened mostly for the firms and industries. Documentation: Firstly application in which on the firm letter is given on the counts. NIC copy of proprietor. Operation: All the requirements remain same but the name of firm is written title of proprietor. Partnership Account: This account in NBP is opened with the name of. Firm Name of all partners. On behalf of firm. Documentation: In which. Application to open the account on firm letter pad. Copy of NIC and all partners. Register lion copy that firm is running with help of partners. If not liable firm then firm will be unregistered as a partnership. address of all partners Operation: In working all thinking will remain same best form. Signed by all partners. Part I and iv is also filled And when the any type of account is open then NBP bank gives a letter of thanks to the Account opener and account Introducer account NBP is also closed if any person required for this purpose. written statement in the bank account. 100/ debits in the bank account. All amount with draw except Rs. 100/ Check book issuing by NBP : Page | 29

Check book is issued after opening of account . And it is mostly issued for current account and saving account. The time period of issuing of the time in NBP is one day. One account holder have taken 50 to 100 cheaque Books and on saving account have taken 10 to 25 cheaque book. Note: Exercise duty is also taken by bank to the account holder Rs.3/

3.4 Foreign Exchange Department:


In Pakistan very small no of banks which have foreign exchange department .in Multan, NBP Gulgasht Branch Multan have a license of foreign exchange of currency. This license is issued by state bank of Pakistan to their some banks .NBP Multan branch exchange the currency in dollar, pound sterling, Dutch and upends yen. This facility is provide to their residents of Pakistan which received amount from abroad. The foreign exchange department take on exchange of currency some profit in form of excise duty and they received some amount NBP Multan have limited license in which it can exchange specific currencies which are specified by head office . Mostly foreign exchange department is controlled by OG-III. Foreign exchange department. in Multan branch following functions. (i) (iii) Foreign currency deposit Export (ii) (IV) Imports Remittances

For exchange of currency the customer should be account in that branch. In which for this purposes following types of accounts are opened which are foreign currency current account, and foreign currency pls accounts save to the opening account producer. I learnt in foreign exchange dept about using foreign remittances instruments by which only foreign currency are exchange from one demand draft ,mail transfer, telegraph transfer, pay order and pay slip for this purposes branches in out side of countries are worked. In demand draft , bank draw a application for a specific amount of money . It is made by NBP against cash or cheque . When two banks involve, then send one bank demand draft. Issuance method: In demand draft, Page | 30

Issued the application by bank to the customer and then he fills the relevant information. The checked by offices. Charges are deducted from the amount. If taxpayer then not received. In cash deposit , cashier the amount and sings the FDD. And enter in register. When amount received then operation manager signed. Entry is made in FDD register. The vouchers and FDD form given for posting at the computer. Then FDD hard and soft copy mailed to receptor branch r form issued NBP Gulgasht Branch Multan. Payment: When FDD received , customer comes to bank with FDD and then The nos are checked and signatures are verified. Entry is made on payable in FDD register and then voucher is made. Then FDD credit is attached with voucher and given for the posting at computer. When FDD is received, the test nos are checked and payment is made. Voucher given for posting and close the register. Mail-transfer: Mail transfer is our b/w save branch it is easy mean to transfer the amount from one account to another account with saver bank but different branches. Issuances: For issuance of in following requirement are required in NBP Multan. Voucher filled with account no, name, address and date and branch of bank. The amount to be sent in which form e.g. in cash or cheque. Record maintain in register. Send to officer for signature. Signature is taken on counter folio of MT from customer. Then, MT drawn is sent to concerned branch with the proof of sender branch. Payments: When other branch received MT then. Page | 31

Firstly, no is checked and signatures are verified. The entry is done in MT register. When there is no account then MT , receipt needs revenue stamps and then the payment is made. It is not negotiable it is written attended. Telegraphic transfer: It is very fast mean of transfer pf funds from one place to another place. In NBP it is very costly mean. Received 3/. Of total amount. Issuances method: In this instruments manager of NBP permission is involved and following steps are taken or occur. Application given, amount is deposit. The officer on basis of amount make a TT message which and is about payer then. Amount is written and is conditioned with the codes that are allotted to manager. Payments: When received the TT message. The branch manager of NBP put his codes and will read the message. Pay order: It is a cheque which is draw by NBP is any other bank between three parties which are purchaser, bank and receives government is mostly made it. Requirements of issuance: At the time of issuance some requirements are needed for entrance. Form is filled by customer with signs, details. Staff checked or officer checked all information. Amount is received by customer. Another is a cost memo, which is attempted and gives a receipt to the customer. Then, entry is done in pay order issued register. And then officer of the department. Sign on it. Page | 32

3.5 Government Section:


In NBP Multan branch following functions are done which are help for the public: Supervision of all Collection Accounts / Payment Transaction / Daily Railway Collection in Govt. Section for transfer their off to SPB / Account Office. Govt./ Railway Pension Payment (Cash / Transfer) Renewal / registration of Federal Govt. Arm lincense. Double signatory of all Govt. receipt / Payment voucher Preparation of Govt. Payment Scroll Preparation of all statements / returns. Counter signing of all utility bills. Any other assignment by Operation Manager Govt. receipt cash / transfer. Transfer of daily Govt. Receipt / Payments Railway collection to NBP. Counter signing of all Govt. receipt challan / voucher Dispatch of all Govt. receipt payment scroll and vouchers along with daily summary of 70 Govt. receipt / payment to account office / NBP Double signatory of all Govt. receipt / payment voucher Any other assignment by the Incharge Govt. section. Note: In NBP Gulgasht Branch Multan the Incharge Govt. and officers shall be held responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers wil monitor all heads of Govt. Section for well in time reporting in monthly, quarterly, annual return to controlling office. Responsibilities of NBP officer about Govt. Section: The Incharge and officer shall be responsible for: Supervision of all govt. receipts / collection and transfer thereof to SBP / Account office well in time. Responsible of RBVs of all linked branches for Govt. receipts / payments and transfer thereof to SBP well in time and scrolls thereof should be submitted to SBP and account office. Page | 33

Daily CBR collection should be transferred in SBP account well in time on daily basis. Proper reporting of summaries / transfer of fund should be made properly and insure no complaint from SBP / any other authority.

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3.1 My Learning as an Intern Sitting in the compliance officer of NBP Gulgasht Colony Multan, I heard the good news of having six week internship opportunity in NBP. In this time period, the important was that most of the time customer comes me with great hope and I was there to guide them. In my six week internship, I worked in NBP, A/C opening department, cash line department and remittance department and also advance department. Due to the load I was unable to much about to create a income statement, profit and loss account and balance sheet. Most of the time all the officer were busy because audit was running in this branch during my internship but all the officer cooperate with me when I was asked any information about any department . 3.2 Learning in Commercial Lending Department When I worked in this department, Madem sana naseer (MTO) and Mr. Aaghar khan (credit officer) were there in this department to guide me. I have learnt complete procedure and all legal requirements of getting a commercial loan, they told me each and every thing about advance. I was made familiar with all legal documents required for getting Credit sheet, and made a Stock Reports of the pledged stock, and Borrowers Basic Fact Sheet etc. 3.3 Learning Cash Line Department Mr. Mukhtar (Head cashier) and Mr. Malik Nazar are dealing in Cash Line Department. I was sent to this department for three days. They takes a govt recites all kind of deposits, passport fees and also collect public service commission fees. When a person draws a cheque and they fill a cheque. the officer sign it matches with the customer signature. The person goes to the cash line officer with cheque then officer give his payment from that account. 3.4 Learning in Operations Department. 3.4.1 Remittances Ms. Mehreen told me about remittances. She gave me a detailed lecture on this topic and practically made me familiar with all of its instruments like: Demand Draft Payment order Remittance is transfer of funds from one place to another or from one person to another. Page | 36

A Remittance is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank. 3.4.1.1 Demand draft it is the form of bill drawn on demand or otherwise by one bank to another bank in the form of third party or same branch of the bank and also other branches. The National Bank of Pakistan provides demand drafts at very low rates with safety and reliable way to transfer money. Any people who are an account holder of the bank or not, can purchase a Demand Draft form a bank. The bank issues the demand draft through these conditions. The customer fills the prescribed form. Apply bank tariff charges. Customer pays the tax according to govt rules then the customer pay amount of the cashier who put his signature stamp it. The officer enters in the computer and computer generates a number. After that officer issue D.D and D.D number enter into the register. The bank takes charges against the draft. If the demand draft is above 25000/- then the customer pay govt tax 0.2%. The customer use demand draft any where, if need of money in any city of country. 3.4.1.1.1 Payment of Demand Draft The officer verified signature from the specimen signature book. D.D numbers inter into the computer the amount will be automatically credited to the payee A/C. in case of D.D received. 3.4.1.1.2Cancellation of Demand Draft The customer write an application to the bank in case of cancellation of D.D. after proper verification of signature then officer will be cancelled the D.D and will be pass the entry of debiting.

3.4.1.2 payment order

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Payment order use within the station and clear a same day. Any people who are an account holder of the bank or not, can make a payment order form a bank. The bank issues the payment order through these conditions. The customer fills the prescribed form. Apply bank tariff charges. Customer pays the tax according to govt rules then the customer pay amount of the cashier who put his signature stamp it. The officer enters in the computer and computer generates a number. After that officer issue payment order and payment order number enter into the register. The bank takes charges against the payment order. If the payment order is above 25000/- then the customer pay govt tax 0.2%. Most of the time, I was made a payment order, when a customer come in the bank for made a payment order. Then the bank officer said me, make payment order. A/C holder does not give the ID card copy. Non account holder gives the ID card copy. 3.4.1.3 Telegraphic Transfer T.T is sent on the same day to another branch by the telephone and bank takes telephonic charges Rs: 100/3.4.1.3.1 Payments Verification Cash is paid. Credited the amount to the party account on the same day. 3.4.1.4 Mail Transfer It is used to transfer the amount from one branch to another same branch or different branches. In this procedure extra charges is taken if the customer wants to fax the M.T to another branches. It procedure is also same as of D.Ds

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The clearing facility is available in all working days. If the check received for the clearing purpose then the bank send the checks through NIFT to that branches. If the check is in the same city then no delivery charges and other city branches takes a charges. If the check of NBP then Rs: 75/- must be in the account +16% FED charges +Rs: 70/-postages charges. For the others branches Rs: 100/- must be in the account + 16%FED and postage charges Rs: 70/If the check of NBP staff then only 16% FED charges then no other charges. Govt A/C only postage charges MEPCO EDUCATION Check will be valid for six (6) month. If the NIFT is not available in the others city then they use the courier services for clearing the check. Check will be cleared that dates when check received other wiser check must be cleared in three (3) days. If amount is above RS: 100,000/- or above then checks will be clear in a same day. If the person comes in the NBP with check Rs: 20,000/- but the check was HBL .the bank officer made a cr-slip and send the check to the HBL branch then the HBL bank made a draft and again send NBP. Both banks take charges for clearing the check. When draft reached the NBP then the bank credit amount in account. Credit slip will help to credit account. Duties: During my internship my duties are under which I had worked in various places, First and second week, spend on credit department of NBP by me, where different types of loans are provided to their customers and employer and then markups are calculated. Third week spent by me on the Account Option in NBP Gulgasht Branch MultanMultan .In second week I took experienced or learnt about the procedure of account opening in NBP Gulgasht Branch Multan and check Book issuing procedure. Fourth and fifth week spend in foreign exchange departments which I had worked in various general works of NBP such as EOBI payment and posting. In the sixth week I spend in NBP Karobar, their recovery and their installment, In the seven week I worked in government section. Page | 39

Accomplishments: During these days I am achieve all over the targets which banks Manager, operation Manager, credit officer or any body given to me in any departments such as If I am work in general Administration or general Banking then I am work at cheaque and its procedures, cash receipt, cash payments, scrolls vouchers, and account opening. If I am work in Credit Departments then I achieve all over the work consist on advances, Consumer Finance, Running Finance, and Cash Finance, Agriculture Finance their recoveries and their duration, interest rate daily bases, weakly bases, monthly bases, three months bases, six month bases and Annulay bases. Further we work at agriculture proposal, pass book and their actual property. Before given these finance we know consumer delinquency report either he/she is able to receive these advances. For this purpose we know consumer delinquency report such as ICIL Report and e-CIB Report. If I am work in clearance departments then I am work at outsider Banks cheaque (any organization given to any person), transfer Payments and their procedures. Further work at pay order and demand draft. If I am work in deposit departments then I am learn the procedures of cash receipt, cash payments, payments of chalans and governments payments and posting in scroll and computer. Problem Encounter: All live of internship 1 faced following problem in NBP Poor quality counter services in branches which are not online Outdated system & procedure Lack of good delegation Inadequate, poorly placed network technology Poor MIS / Marketing information system Deep rooted bureaucratic approval Poor maintenance & implementation

Suggestions & Recommendations:

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The importance of recommendations in an internship report cannot be ignored. The staff of NBP not only provide basis for recommendations but also highlight the areas, where changes are required for development. According to my suggestions they can play work properly, through these ways: Political reference in banking sector need to be stopped, so that the top management and as well as other employees will not be disturb in the working condition. During the process of selection then the qualification of employees should be professional master degree. The organization provides refresher courses, seminars, workshops and other meaningful training programs to improve their knowledge of the employees. The bank should confirm that the provided figures by the borrowing organization are fairly audited and that the auditors are on the approved list of the bank. The main responsibilities of bank is to ensure that the company to which taking a loan that company is good reputation in the markets. If the any person taking a property loan from the bank then the bank must be verification of the property offered as a security is must, because the person is able to return the loan. The bank should be conducting the investigation. Therefore the property is joint or not joint property. To save the time of the customers and other clients, bank should adopt computerized system for book keeping and other filling systems in all these branches of the country. Redefining of rules, regulations and policies should be made implemented at all costs. The behavior of the employees, especially on the counter has to be strictly monitored and checked. All advances should be made by getting the maximum security and should focus on productive work. Better and comprehensive long-term and short-term planning should be made to forecast the future needs. There is a possibility of establishing a task force to ascertain the effectiveness of the policies being implemented. There is delegation of authority by reducing centralization strategy. Page | 41

There should be better packages given to employees to reduce turnover. New Knowledge Acquired: I was learning in Books at Bachelors and Masters such as Business Administration theory work but the practical work is totally differing. In theory we learn all the knowledge consists in books very deeply and carefully but in practical Banks work or any organizations work is totally differ. In organization we actually talk with customer, faces problems and their solution. Impacts on career: There are many impacts of internships on many careers. This experience is impact my future career because I am actually know the practical work faces problems and their solutions. This is depend own-self if I am work very honestly, carefully, hardly and managing work then it is impact my career my job and give me a path where I am reach to future. Through Managers report of my work this is very impact my career and this is support my future job because any Employers when he is hire persons for completing post cannot know the candidates work but this letter about internees work give him support to know these persons work. We know that in colleges or universities teacher know the students mind their study and hardworking position but they do not know their practical work that these students can perform actual work better or not but in organization they know their actual work. I know this is very support to me in my practical work after doing these Master in Business Administration because I am fully satisfied my work but I know this is not sufficient knowledge to do all over the banks or any organization work because when they hire persons permanently or temporary then they will do training and development and career development. I am needed all over the work but I am satisfied our work during which I am doing in training this is very impact It has enabled me to understand the practical scenario in which the banking sector operates.

It has helped me sharpen my decision making power To utilize the resources in an effective manner to generate maximum profit We know that in colleges or universities teacher know the students mind their study and hardworking position. Page | 42

Conclusion: NBP is the second largest Bank of the Pakistan and it plays largest operation in Pakistan. It faces many problems which are management problems organizational and marketing strategies. At the time of recruitment and promotion are under political system by which profitability of NBP Gulgasht Branch Multan decreased. And it should to improve the quality of services especially in foreign department in NBP Gulgasht Branch Multan. During the internship I observed this huge organization that the banking field is more competitive and NBP Gulgasht Branch Multanshould use more innovative and creative ideas for the attraction of the customer. Now NBP have provided computerized facility in all branches of Pakistan. The HR department NBP Gulgasht Branch Multan should hire more qualified and competitive persons in all branches. Work distribution in NBP Gulgasht Branch Multan not equally divided between employees. After considering all the information regarding NBP we have concluded that this is pure Nations bank of the Pakistan and rendering so many services to its customers. NBP should fully concentrate to improve its performance and standards to meet the challenges by the economy as well as by the competitors and for that purpose it need to overcome the problems and improve the quality of services specially in advance section, that will prevent it from huge losses.

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References: Introduction of NBP; available online at:http://:www.nbp.com.pk/aboutus/aspx Viewed on 22 June 2010 Background of NBP; available online at:http://:www.nbp.com.pk/aboutus/aspx Viewed on 2 July 2010 Business operation; available online at:http://:www.nbp.com.pk/internshipreport/aspx Viewed on 15 august 2010 Fahd, Siddiqi H. (1998). Practice and Law of banking in Pakistan. Karachi: Decent Print Enterprises. Page 15-17 Sir, Paged John. The law of Banking. The Law of Banking. McGraw Hill Publication: page 51-58 Nasir, Saeed H.(2001). Money and Banking. Pakistan, Kitab Markaz: Page.105-106 Nasurllah A.(2001).Money, Banking and Finance. Pakistan. Multan. Updated Addition.Page 113-124. www.nbp.com www.nbp.com.pk/Premium/index.htm www.nbp.com.pk/Saibaan/index.htm www.nbp.com.pk/advancesalary/index.htm www.nbp.com.pk/CashnGold/index.htm www.nbp.com.pk/StudentLoan/index.htm NBP Annual Report 2010 Madam Mehreen Tanveer Bhatti (Manager)- OG-I, NBP Gulgasht branch Multan MR. Amir Khalil (Operations Manager)-OG-1 NBP Gulgasht branch Multan Mr. Fafeem (Compliance Officer)-OG-2 NBP Gulgasht br Multan Madam Sana Nasser (Management Training Officer) MTO.-OG-2 NBP Gulgast branch Multan Mr Asghar Khan, Incharge Remittance, NBP Gulgasht branch Multan

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