INTRNSHIP REPORT

ON NRSP MICROFINANCE BANK FATEHPUR BRANCH

Name: Muhammad Saad

Roll Number: 04
Registration#: 813216
Institute: Government Graduate College of Commerce
Location: Layyah
Government College University, Faisalabad
[Session 2020-2024]

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 DEDICATION

I dedicate this internship report to all those who have been a source of constant support and
inspiration throughout my academic journey. To my teachers, whose wisdom and guidance have
shaped my understanding; to my family, whose hopes and sacrifices have fueled my ambitions;
and to my mentors, whose encouragement has motivated me to strive for excellence.

I owe everything I am today to my parents, and especially to my mother, whose unwavering

support and endless prayers have guided me through every step of my journey. Her sacrifices and
love have been the foundation of my success. May Allah bless her with a long life filled with
health, happiness, and peace.

To my advisor, for their guidance, expertise, and patience. Thank you for pushing me to explore
new ideas, challenging me to think critically, and providing invaluable feedback that has shaped
the outcome of this report. To my friends and classmates, for their camaraderie, motivation, and
shared experiences. Your presence has made the long hours of research and study more enjoyable
and fulfilling.

To the dedicated staff at Government College of Commerce, Layyah, for cultivating an enriching
academic environment that promotes learning, personal growth, and intellectual exploration. I also
extend this dedication to all those who believe in the transformative power of knowledge, and
whose passion for education inspires positive change in the world. May our combined efforts lead
to a brighter, future for all.

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 ACKNOWLEDGMENT

I am deeply thankful to Almighty Allah for granting me the strength, to complete this report on
time. I would like to extend my heartfelt appreciation to Prof. Saqib Ur Rahman and Prof. Naveed
Arshad for their unwavering support and expert technical guidance throughout the development of
my BBA internship report. Their valuable insights and dedication played a crucial role in
enhancing the quality of my work, for which I am sincerely thankful.

I wish to express my sincere thanks to Mr. Zulfiqar Ali, the branch manager, and the dedicated
staff member at NRSP Microfinance Bank Limited FatehPur Branch. Their guidance in every
department played a crucial role in enhancing my learning experience, making it both productive
and fulfilling.

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 EXECUTIVE SUMMARY

It sounds like your internship at NRSP Microfinance Bank Fatehpur Branch offered a valuable
learning experience about the inner workings of the bank.

You're absolutely right—internships are a vital component of the BBA program, offering practical
exposure that enhances both organizational understanding and personal skill development.

An internship goes beyond just helping to complete a report; it provides valuable insights into real-
world business decisions and policies. This practical exposure sharpens your thinking, encouraging
innovation and a broader, more dynamic approach to problem-solving.

I then introduced the branch where I completed my internship, detailing the workforce distribution
and the duration of my training. I highlighted the various services I was involved in and described
the training phase, where I learned key banking processes such as account opening and
distribution. Additionally, I explored how the bank is managed to maintain smooth operations,
discussed organizational procedures followed by staff like managers and IT specialists, and
explained the role of management in overseeing and controlling the bank's activities.

This report reflects the knowledge and experiences gained during my six-week internship at the
NRSP Microfinance Bank. The data gathered stems from both primary and secondary sources,
with a strong emphasis on my personal involvement. By closely observing daily operations,
engaging in practical tasks alongside the staff, and participating in discussions, I was able to gather
key insights that serve as the basis for this report.

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 Table of Content
1. NRSP BANK: INTRODUCTION ………………………………………………………….07
1.1 Objective ………………………………………………………………………..07

1.2 Purpose ……………………………………………………………………........07

1.3 Overview of the organization ………………………………………….…………...07

1.4 Vision Statement ……………………………………………………………….……………07
2. HISTORY ……………………………………………………………………….…………...08
2.1 Formation of NRSP ………………………………………………………….........................08
2.2 Expansion into Microfinance …………………………………………………….………….08
2.3 Establishment of NRSP Bank ……………………………………………………….……....08
2.4 Mission and Objectives ……………………………………………………………….…….08
2.5 Regulatory Compliance ……………………………………………………….…………….08
2.6 Social Impact ………………………………………………………………….………….....08
2.7 Continued Growth and Innovation …………………………………………….……………09
3. DEPARTMENT OF NRSP BANK …………………………………………..…………….10
3.1 Operations Department ………………………………………………………….…….........10
3.2 Credit Department ………………………………………………………………….……….10
3.3 Risk Management Department ………………………………………………………..…….10
3.4 Compliance Department …………………………………………………………….………10
3.5 Finance and Accounting Department …………………………………………………..…...10
3.6 Human Resources Department …………………………………………………………..….10
4. Banking Products and Services ………………………………………………………….....11
4.1Current Deposits ……………………………………………………………………….…….11
4.2 Saving Deposits………………………………………………………………………….......11
4.3 Term Deposit…………………………………………………………………………….…..12
4.4 Loans……………………………………………………………………………………........12
4.5 Bank Insurance………………………………………………………………………………13
4.6 Debit Cards……………………………………………………………………………..........14
5. Digital Banking………………………………………………………………………….……16
5.1 Online Banking ………………………………………………………………………….…..16

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5.2 Mobile Banking …………………………………………………………………………..…17
5.3 QR Code Payments ……………………………………………………………………….....18
5.4 USSD (Unstructured Supplementary Service Data) ……………………………………..….19
6. Training Program………………………………………………………………………..…..21
6.1 Accounts Opening Department…………………………………………………………........21
6.2 Clearing/Remittance Department………………………………………………………….....22
6.3 Cash Department………………………………………………………………………..........23
7. Account Opening………………………………………………………………………….….25
7.1 Types of Accounts……………………………………………………………………….…...25
7.2 Procedure for Withdrawals………………………………………………………………......26
7.3 Procedure for Cross Cheques…………………………………………………………….…..26
8. Islamic Banking………………………………………………………………………………27
8.1 Deposit Scheme ………………………………………………………………………….…..27
8.2 Financing Scheme ……………………………………………………………………….…..28
9. Learning Summary ……………………………………………………………………….....31
10. Statement of financial position ………………………………………………………….....34
10.1 Balance Sheet ……………………………………………………………………….……...34
10.2 Ratio Analysis ……………………………………………………………………….……..35
11. SWOT and Pestle Analysis …………………………………………………………..…….37
11.1 Strength ……………………………………………………………………………….……37
11.2 Weakness ………………………………………………………………………………..….37
11.3 Opportunities …………………………………………………………………………….....37
11.4 Threats ……………………………………………………………………………………...38
11.5 Pestle Analysis ……………………………………………………………………………..38
12. Conclusion …………………………………………………………………………………..39
13. Reference …………………………………………………………………………….……...40

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1. INTRODUCTION
NRSP bank is a famous & the oldest commercial bank in Pakistan. It is provide a large number of
product & services to their customers. My work is based on the observations & experiences during
my internship & data is collected for this report by many sources in which my own written work
and discussion with staff. In internship report I tried our best to explain all the work which I learned
during my internship & also give some suggestions for the betterment of NRSP bank LTD.
I choose NRSP bank Fatehpur branch for internship & I am very thankful to Sir Zulfiqar Ali
(Manager) who provide me a learning environment in his branch.
1.1 Objective:
Following are the objectives of my internship:
 To get the experience of practical field.
 For opportunity of work experience
 To develop relationship with business community
 To develop image of institute.
1.2 Purpose:
The basic purpose of my internship is to relate my area of interest of my study with organization
while it is a perfect field for me to doing a job with banking sector or not.
1.3 Overview of the organization:
NRSP bank LTD is a profitable financial institution in Pakistan. It is a famous & oldest commercial
bank in Pakistan.
1.4 Vision Statement:
“To be the leading financial services provider and partnering with our customers for a more
prosperous and secure future.”

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2. HISTORY
The NRSP Bank, also known as the NRSP Microfinance Bank, has a significant history
intertwined with the National Rural Support Programme (NRSP), one of Pakistan's largest rural
support organizations. Here's a brief overview of its history:
2.1 Formation of NRSP
The NRSP was established in 1991 as a non-governmental organization (NGO) with a mission to
alleviate poverty and improve the quality of life in rural Pakistan. It aimed to empower rural
communities through various development initiatives, including microfinance, agriculture,
education, and health.
2.2 Expansion into Microfinance
Recognizing the importance of financial inclusion in rural development, NRSP expanded its
operations to include microfinance services. It began offering small loans, savings products, and
other financial services to empower rural households, particularly women, to start small businesses
and improve their livelihoods.
2.3 Establishment of NRSP Bank
In 2011, NRSP Bank was established as a subsidiary of NRSP to further expand its microfinance
operations and provide a formal banking platform for its clients. This move allowed NRSP to offer
a wider range of financial services and deepen its impact on rural communities.
2.4 Mission and Objectives
NRSP Bank's mission is aligned with NRSP's overarching goal of poverty alleviation and rural
development. It aims to facilitate financial inclusion, promote entrepreneurship, and enhance the
socio-economic well-being of its clients, especially those living in rural and underserved areas of
Pakistan.
2.5 Regulatory Compliance
NRSP Bank operates under the regulatory framework of the State Bank of Pakistan (SBP), the
country's central bank, ensuring compliance with banking regulations and standards. This
regulatory oversight helps maintain the integrity and stability of the banking system while
protecting the interests of clients and stakeholders.
2.6 Social Impact
Over the years, NRSP Bank has made significant strides in advancing financial inclusion and
empowering marginalized communities in Pakistan. Through its microfinance and banking

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services, it has helped thousands of individuals and families’ access financial resources, build
assets, and improve their standard of living.
2.7 Continued Growth and Innovation
NRSP Bank continues to evolve and innovate to better serve its clients and meet their changing
needs. It leverages technology, such as mobile banking and digital financial services, to enhance
accessibility and efficiency while expanding its outreach to remote rural areas. Overall, NRSP
Bank's history reflects its commitment/dedication to promoting sustainable development and
empowering rural communities through inclusive financial services, thereby contributing to the
socio-economic progress of Pakistan.

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3. DEPARTMENT OF NRSP BANK
NRSP Bank, like any financial institution, typically comprises various departments responsible for
different functions and operations. While the specific departments may vary based on the bank's
organizational structure and focus areas, here are some common departments you might find in
NRSP Bank:
3.1 Operations Department
Responsible for the day-to-day banking operations, including account opening, cash management,
clearing, and reconciliation.
Ensures smooth functioning of branch operations and adherence to banking regulations and
Policies
3.2 Credit Department
Manages the credit process, including loan origination, underwriting, and monitoring. Evaluates
loan applications, assesses creditworthiness of borrowers, and manages the bank's loan portfolio.
3.3 Risk Management Department
Identifies, assesses, and manages various risks faced by the bank, including credit risk, market
risk, operational risk, and compliance risk. Develops risk management strategies and policies to
mitigate potential risks and ensure the bank's financial stability.
3.4 Compliance Department
Ensures that the bank operates in compliance with regulatory requirements and internal policies.
Conducts compliance reviews, audits, and training programs to promote adherence to legal and
regulatory standards.
3.5 Finance and Accounting Department
Manage the bank's financial activities including budgeting, financial reporting, and treasury
operations. Handle accounting functions like bookkeeping, financial analysis, and taxation
compliance.
3.6 Human Resources Department
Responsible for recruiting, training, and managing the bank's employees. Develops HR policies
and procedures, handles employee relations, and oversees performance management and career
development program.

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4. Banking Product and Services
4.1 Current Deposits
Asaan Current Account
This account is designed for the general public, particularly targeting unbanked and underbanked
individuals, in line with SBP’s National Financial Inclusion Strategy (NFIS). It aims to promote
financial inclusion by offering easy access to banking services.
Primarily a card based account, ATM/Debit Card
Cheque book also available
Simple Documentation. Account will be opened on the basis of valid identity document only
NRSP Behtreen Current Account
No minimum balance requirement
Easy to open; provides ultimate transactional convenience.
Especially beneficial for customers who need to conduct transactions more frequently, such as
Farmers, Urban Low-Middle Income, Rural Salaried and Self Employed segments, such as Small
Business Entities etc.
4.2 Saving Deposits:
Asaan Saving Account
This account is introduced for common people/individuals especially for unbanked/under banked
segment of population in compliance to SBP’s National Financial Inclusion Strategy (NFIS).
 Primarily a card based account, ATM/Debit Card
 Cheque book also available
 Simple Documentation. Account will be opened on the basis of valid identity document
only
NRSP Bachat Account

The Asaan Bachat Savings Account caters to the low and middle-income groups in both rural and
urban areas, offering no minimum balance requirement, flexible access to funds, and the
opportunity for higher returns with increased savings.

Cash Maximizer

This product is designed to provide a convenient savings option for individuals looking to grow
their surplus funds, helping them meet essential household needs like education, health, marriage,

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or home construction, and is especially tailored for small savers, salaried individuals, students, and
housewives.

4.3 Term Deposit:

NRSP Ziada Munafa Term Deposit

This account is designed for customers who wish to invest their funds for a fixed period, ranging
from 1 month to 3 years. NRSP Microfinance Bank caters to the underserved, but also focuses on
the medium-sized segment to generate deposits. The bank offers a standardized and profitable
scheme with a single Rate Sheet, where interest rates differ based on the deposit term. Additionally,
customers can borrow against their term deposits, provided they maintain a minimum deposit
volume, making it a flexible and attractive option for savers.

4.4 Loans:
Group Loans:
A group loan is a type of financing provided to a group of individuals, often organized around a common purpose,
such as farming or small business initiatives. Here's a breakdown of its key features:
• Agricultural loan
Agricultural loans of up to PKR 70,000 are offered to small cultivators through Community
Organizations, secured by group guarantees and timed with harvest seasons. These loans
support land lease payments, land preparation, seed and fertilizer procurement, and other
essential farming activities.

• Women Empowerment Group Loan

The Women Empowerment Group Loan aims to provide financial support to working women
for income-generating activities, helping them boost household income through livestock
purchases such as goats, sheep, or calves, and other related ventures.
Micro Small Medium Enterprise Loan:
Micro entrepreneurs can access loans of up to Rs. 1 million to support business expansion, stock
purchases, asset acquisition, working capital needs, and dairy farming operations.

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Individual Loans:
• Livestock Individual Loan
The loan supports livestock fattening, rearing, slaughtering, and dairy farming, along with
related activities such as planting animal fodder, purchasing chopper machines, vaccinations,
building sheds, and installing water tanks, pumps, or generators.
• Kissan Zarri Taraqiati Loan (KZTL)
This loan provides working capital for individuals involved in agricultural development,
offering funds for purchasing solar power plants for tube wells, tractors, trolleys, laser levelers,
motivators, or other essential agricultural equipment, secured by land, vehicles, or gold.
• Asaan Sarmaya Loan/Gold Loan (ASL)
This loan offers working capital for a range of needs, from agriculture and livestock to small
business ventures, asset purchases, home renovations, education, health, marriage, and
emergencies, secured by gold or gold ornaments (excluding Mala) pledged with the bank.

4.5 Bank Insurance:

Crop Loan Insurance Scheme

The Ministry of Finance has launched the Mandatory Crop Loan Insurance scheme for five key
crops, available to interested borrowers. To mitigate the risk for farmers facing natural disasters,
NRSP Bank provides complimentary crop loan insurance to all borrowers of production loans for
major crops who choose to participate in this insurance program.

Under This Scheme:

 Provided to: All bank borrowers receiving production loans for Wheat, Cotton, Rice,
Sugarcane, Maize
 Insurance Cover: Based on the per acre borrowing limits
 Period Covered: From Sowing to Harvest
 Fee Charge to Customer: Free

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Product Credit Life Insurance

NRSP Bank make arrangements of Credit Life Insurance to its all individual borrowers to cover
the credit risk of natural.

Under This Scheme:

 Provided to: All borrowers

 Coverage Age: 18 Years to 70 years
 Insurance Cover: Principal Outstanding’s
 Fee Charge to Customer: Free
 Coverage Against: Credit Cover in case natural or accidental death of borrower
Takaful Life Insurance for Islamic Division

NRSP Bank make the arrangements of Takaful Life for its all borrowers of Islamic division.

Under This Scheme:

 Provided to: All borrowers of Islamic Division

 Coverage Age: 20 Years to 65 years
 Insurance Cover: Takaful cover will be equal to outstanding financing balance.
 Fee Charge to Customer: Free
 Coverage Against: On death of an insured member due to natural or accidental causes.

4.6 Debit Cards:

NRSP Union Pay Debit Card

NRSP Microfinance Bank, in collaboration with Union Pay International (UPI), offers debit
payment cards equipped with chip card technology for enhanced security. With NRSP Debit Cards,
customers can enjoy seamless access to their accounts across Pakistan, making payments for
shopping, dining, fuel, travel, and more. The GOLD Card Plus, GOLD, and SILVER Debit Cards
provide flexible cash withdrawal options and convenient payment solutions for everyday
transactions.

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Additionally, you are now able to use your ATM cards for:

 Payment of Utility Bills and Mobile Top-ups

 Inter Bank Funds Transfer
 Balance Inquiry
 Mini Statement
 Global Acceptability
 With an NRSP debit card enjoy 24/7 electronic access to your account

NRSP Pay Pak Debit Card

The NRSP Pay Pak Debit Card is a domestic payment solution designed for use exclusively within
Pakistan. It provides the convenience of secure ATM withdrawals and retail purchases nationwide,
eliminating the need to carry cash. With its PIN-based security system, the card ensures safe
transactions at ATMs and retail outlets across the country.

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5. Digital Banking:

Digital banking refers to the integration of modern technology with traditional banking systems to provide
more accessible, convenient, and efficient services to customers. With the rise of the internet,
smartphones, and mobile technology, banks have increasingly adopted digital banking solutions,
enhancing customer experiences while improving operational efficiency. Digital banking includes services
such as online banking, mobile banking, QR code payments, and USSD-based banking, each playing a vital
role in the modern banking ecosystem.

 Online Banking
 Mobile Banking
 QR Code Payment
 USSD ( Unstructured Subscriber Data)

1. Online Banking
Definition:
Online banking, also referred to as internet banking, allows customers to conduct financial
transactions over the internet. This service is accessible via the bank's official website or online
portal, usually through a secure login system requiring a username and password. Online banking
is one of the most widely used forms of digital banking due to its convenience and ease of access.
Key Features:
 Account Management: Customers can view account balances, transaction history, and
account statements. It allows easy tracking of financial activities in real-time.
 Money Transfers: Users can transfer funds between their own accounts, to other accounts
within the same bank, or to different banks. These transfers are often real-time or processed
within a few hours.
 Bill Payments: Customers can pay utility bills (electricity, water, internet, etc.), loan
repayments, and other recurring bills directly through the bank’s online portal.
 Loan Applications: Users can apply for various types of loans (personal, home, auto) and
track their application status online.
 Investment Management: Many banks provide online tools to manage investments, such
as stock portfolios or mutual funds.

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Benefits:
 24/7 Accessibility: Customers can access their accounts and perform transactions anytime,
eliminating the need to visit physical branches.
 Convenience: Online banking reduces the need for paperwork and waiting in long lines at
physical branches.
 Cost Savings: Reduces operational costs for the bank, which can be passed on to customers
in the form of lower fees.
Challenges:
 Cybersecurity Risks: Despite enhanced security protocols, online banking remains a
target for cybercriminals. Banks must continually invest in technology to protect user data
and prevent fraud.
 Technical Issues: Outages or slow performance due to server issues or maintenance can
disrupt services.

2. Mobile Banking
Definition:
Mobile banking allows customers to access banking services via their smartphones or tablets. It
extends the capabilities of online banking to mobile platforms through dedicated banking apps that
can be downloaded from app stores. Mobile banking has become increasingly popular due to the
convenience and portability offered by smartphones.
Key Features:
 Mobile Payments: Customers can make payments for goods, services, and even peer-to-
peer (P2P) transfers through their mobile devices.
 Fund Transfers: Mobile banking apps allow quick and secure fund transfers, both locally
and internationally.
 ATM Locator: The app can show nearby ATMs or branch locations, helping users find a
physical location in their area.
 Push Notifications: Users receive instant notifications about account activities, such as
deposit alerts, transaction confirmations, and low balance warnings.

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  Security Features: Mobile banking apps often include biometric authentication methods
(fingerprint or facial recognition) or two-factor authentication for enhanced security.
Benefits:
 Accessibility: Users can access their accounts and perform banking tasks anywhere,
without needing a desktop or physical presence at a bank branch.
 Ease of Use: Intuitive mobile apps with user-friendly interfaces simplify banking tasks for
users of all ages.
 Real-time Transactions: Payments and transfers are often processed instantly or within
minutes, enabling real-time financial management.
Challenges:
 Device Compatibility: Mobile apps must be compatible with a wide range of devices and
operating systems (iOS, Android, etc.), which may sometimes limit functionality.
 Battery and Data Usage: Frequent use of mobile banking apps can drain the device’s
battery or consume data, especially for customers in areas with limited internet coverage.

3. QR Code Payments
Definition:
QR code payments enable users to make payments by scanning a Quick Response (QR) code
displayed by merchants or businesses. The QR code contains all the payment details, and once
scanned, the payment can be processed directly through the customer’s mobile banking app or
digital wallet.
How It Works:
 Merchant Displays QR Code: The merchant generates a unique QR code that is linked to
their bank account or payment gateway.
 Customer Scans the Code: The customer uses their mobile banking app to scan the QR
code, and the payment details automatically populate on their device.
 Payment Authorization: The customer confirms the payment amount and authorizes the
transaction, which is processed in real time.
Key Features:
 Instant Payments: QR code payments enable instant processing, making transactions
faster than traditional methods like cash or credit/debit card payments.

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  Security: QR codes can be encrypted to ensure secure transactions and reduce the risk of
fraud or phishing.
 Cost-Effective for Merchants: Merchants don’t need expensive point-of-sale (POS)
equipment to accept payments, reducing their overhead costs.
Benefits:
 Contactless Transactions: QR code payments offer a contactless and hygienic alternative
to physical cards and cash, which is particularly useful in post-pandemic times.
 Ease of Use: QR code payments require minimal steps, making them very user-friendly.
 Widely Accepted: QR code payment systems are gaining popularity globally, offering
easy access to a wide range of services and merchants.
Challenges:
 Technology Barriers: Customers need a smartphone with a camera and internet access to
use QR code payments, which may exclude some individuals, particularly in developing
regions.
 Potential for Scams: Fraudulent merchants can display fake QR codes, tricking customers
into making unauthorized payments.

4. USSD (Unstructured Supplementary Service Data) Banking

Definition:
USSD is a protocol used by mobile network operators to send text-based data between a mobile
device and an application server. In banking, USSD enables users to access banking services via
simple text-based menus, typically by dialing a short code (e.g., *123#) on a mobile phone. USSD
banking is especially useful in areas with low internet penetration or for users who do not have
smartphones.
How It Works:
 Dialing USSD Code: The customer dials a short code (e.g., *123#) on their mobile phone.
 Menu Access: A menu of banking services is displayed on the screen, from which users
can select an option (e.g., check balance, transfer money, pay bills).
 Transaction Confirmation: After making a selection, the user confirms the transaction
through the same interface.

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Key Features:
 No Internet Required: USSD banking works without an internet connection, making it
accessible to customers with basic mobile phones or in areas with poor network
infrastructure.
 Quick and Simple: USSD banking menus are simple and easy to navigate, even for users
with limited technical knowledge.
 Real-time Service: Transactions are processed immediately, allowing for instant updates
on account balances or successful payments.
Benefits:
 Broad Accessibility: USSD banking is accessible to anyone with a mobile phone, even in
remote or rural areas where internet connectivity may be limited.
 Cost-Effective: It requires no expensive smartphones or data plans, making it affordable
for a larger segment of the population.
 Quick and Secure: USSD transactions are processed quickly and securely, with minimal
latency.
Challenges:
 Limited Functionality: USSD banking offers fewer features compared to mobile and
online banking.
 Complex Codes: Users need to know the correct USSD codes for different services, which
can be confusing for some customers.

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6. Training Program

6.1 Accounts Opening Department:

The training spans two days and focuses on comprehensive account opening procedures, including
the types of accounts offered and the steps required to open them. Emphasis is placed on KYC
(Know Your Customer) compliance, teaching staff to effectively verify documents and ensure due
diligence. Additionally, the program covers account maintenance tasks such as updates and
closures. Interactive workshops and role-playing scenarios are employed to build communication
skills for better customer interaction and understanding of their needs.

Key Training Areas:

1. Types of Accounts:

 The training begins by introducing various types of bank accounts, such as savings
accounts, current accounts, fixed deposits, and special accounts (e.g., student or senior
citizen accounts).
 Staff are trained to identify the specific needs of customers and recommend appropriate
account types based on their requirements.

2. Account Opening Procedures:

 The step-by-step process of opening different types of accounts is taught, including the
necessary documents required (e.g., identification, proof of address).

 Emphasis is placed on creating a smooth and efficient process for customers while
ensuring compliance with the bank’s internal policies.

3. KYC (Know Your Customer) Compliance:

 A critical component of the training is the focus on KYC procedures, which are essential
for preventing money laundering, fraud, and terrorist financing.
 Staff are taught how to verify customer identity through document checks and to collect
appropriate customer information in line with regulatory requirements.

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  Role-playing scenarios are employed to help employees practice how to handle different
situations, including dealing with suspicious customers or incomplete documentation.

6.2 Clearing/Remittance Department:

The training also lasts two days, concentrating on the clearing cycle and the exchange of Cheques,
from processing to reconciliation. It includes an in-depth look at remittance services, covering both
domestic and international transactions. Compliance with regulatory requirements and risk
management, particularly concerning AML (Anti-Money Laundering) practices, are crucial
components. Staff are trained on the use of specialized clearing and remittance software through
system demonstrations and compliance workshops.

Key Training Areas:

1. Clearing Cycle and Cheque Processing:

 The first part of the training focuses on the clearing cycle for cheques, from the point of
deposit to the final settlement. Employees are trained to recognize the various stages in the
clearing process and the timeframes involved.

 The program covers key concepts such as cheque endorsements, verification of signatures,
and handling returned cheques. The goal is to ensure accurate processing of payments
while adhering to legal requirements.

2. Remittance Services:

 Employees are trained on how to process remittance transactions, including both domestic
transfers (e.g., wire transfers) and international remittances (e.g., SWIFT payments).
 The training includes understanding the various remittance channels and the paperwork
involved, such as payment instructions, beneficiary details, and exchange rates for
international transfers.

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3. AML (Anti-Money Laundering) Compliance:

 One of the most important aspects of this training is ensuring that employees understand
the significance of AML regulations in the clearing and remittance processes.

 Staff are trained to identify suspicious activities such as large or unusual transfers, cross-
border transactions, or transactions involving high-risk countries.

 Case studies and compliance workshops are conducted to help employees recognize red
flags and understand the procedures for reporting suspicious transactions.

6.3 Cash Department:

Cash Department, the two-day program addresses best practices in cash handling, including
receiving, disbursing, and recording transactions. It emphasizes effective cash management
strategies, fraud prevention techniques, and adherence to regulatory requirements. Hands-on
training involves cash counting, storage practices, and security drills to prevent fraud and ensure
accuracy in cash transactions.

Key Training Areas:

1. Cash Handling Procedures:

 The program covers best practices for receiving and disbursing cash, including verifying
the authenticity of currency notes and coins, counting cash accurately, and handling
discrepancies.

 Employees are trained to ensure the proper documentation of each transaction and to
maintain an accurate cash ledger.

2. Cash Storage and Security:

 Staff are trained on safe and secure cash storage practices, such as using vaults, safes, and
other secure storage methods to protect cash from theft or damage.

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  The program includes safety protocols, such as limiting access to cash storage areas and
monitoring for signs of fraudulent activity.

3. Fraud Prevention and Risk Management:

 A major focus of the training is on detecting and preventing fraud. Employees are taught
how to spot counterfeit notes, detect suspicious transactions, and handle incidents of fraud
or theft.

 Case studies and role-playing scenarios are used to simulate fraudulent situations, helping
employees practice responding to such events effectively.

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7. Account Opening
In this department, I acquired essential hands-on experience in the account opening process, which
is a fundamental function of the bank. The department manages the opening of a variety of
accounts, such as current and savings accounts, tailored to meet the diverse requirements of its
clients. Accounts are opened for individuals, firms, companies, trusts, and even bank employees.

The account opening process is vital as it initiates a formal relationship between the client and the
bank. It serves as the entry point for clients to access a wide range of banking services, making it
a critical factor in building customer confidence and satisfaction. Recognizing the significance of
precise documentation and adherence to compliance procedures, I contributed to creating a smooth
and efficient experience for the clients. This practical training allowed me to gain a comprehensive
understanding of the department’s pivotal role in the bank's overall operations and its importance
in fostering long-term relationships with clients.
7.1 NRSP Microfinance Bank mainly offer three types of accounts:
• Current Deposits Account
• Saving Deposits Account
• Term Deposit
The various categories of accounts available are listed below:
• Individual Account
• Joint Account
• Partnership Account
1. Individual Account:
This is a personal account opened and operated by a single person. It is designed for individuals
who want to manage their personal finances, save money, or conduct everyday banking
transactions. The process is simple, requiring basic identification and documentation, making it
accessible for everyone, from rural clients to small business owners.
2. Joint Account:
This account is shared between two or more people, such as family members or business partners.
It allows multiple signatories to access and operate the account under specific terms, like "either
or survivor" or jointly. Joint accounts are ideal for managing shared finances, whether in a
household or a business setup.

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3. Partnership Account:
Tailored for businesses run by two or more partners, this account allows all partners or designated
signatories to manage the finances of the business. The account requires submission of a
partnership deed and identification of all partners. It is ideal for small and medium enterprises
looking for efficient financial management and banking services.

7.2 Procedure for Withdrawals:

• Withdrawals can be made via Cheque or debit card (if issued). For individual and joint
accounts, authorized individuals can withdraw cash. For partnership accounts, any partner
or designated signatory can withdraw.
• Withdrawals at NRSP Microfinance Bank follow strict verification processes, including
signature matching and checking account balances.

7.3 Procedure for Cross Cheques:

Cross cheque are those that are crossed with two parallel lines and cannot be cashed directly. They
must be deposited into an account.
Steps:
 Deposit the cheque in the respective bank.
 NRSP Microfinance Bank will process the cheque and clear it through the bank's
clearinghouse.
 Funds are credited to the account once cleared (usually takes 1-3 working days).
 Crossed cheque ensure safer transactions by ensuring funds are directly deposited into the
recipient’s account, not handed over in cash.

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8. Islamic Banking:
Islamic banking at NRSP Microfinance Bank Limited follows principles aligned with Sharia law,
which emphasizes ethical and interest-free financial transactions. Here’s an overview of the
Islamic banking Deposit and Financing Scheme offered by NRSP Microfinance Bank Limited.

8.1 Deposit Scheme:

The deposit schemes offered by NRSP Microfinance Bank Limited provide customers with safe
and profitable ways to save money while ensuring that all transactions are in line with Islamic
principles. These accounts operate on profit-sharing agreements and avoid the payment of interest,
instead focusing on generating profits based on the underlying investments and assets.
1. Asaan Bachat Account
• Purpose: Designed for individuals who want to save money in a simple and accessible way.
• Features: This account allows customers to deposit their funds while earning profit-sharing in
compliance with Sharia law. The bank invests the funds in ethical, interest-free ventures, and
profits are shared with account holders periodically.
• Target Customers: Primarily aimed at individuals from lower-income segments who seek
easy access to savings and profits without the need for a large initial deposit.
2. Taajir Bachat Account
• Purpose: This account is tailored for small business owners or entrepreneurs who want to
manage their business savings ethically and effectively.
• Features: Just like the Asaan Bachat Account, profits are earned through Sharia-compliant
investments, ensuring that the account is free from interest. However, it may offer higher
profit-sharing rates due to larger transaction volumes.
• Target Customers: Small and medium-sized business owners who need an interest-free
account to save their business profits.
3. NRSP Current Account
 Purpose: A Sharia-compliant current account designed for individuals or businesses that
need to conduct regular transactions without earning interest on the balance.
 Features: Customers can perform day-to-day banking activities such as deposits,
withdrawals, and transfers. The funds are managed through Mudarabah (profit-sharing)
contracts, ensuring all transactions adhere to Islamic principles.

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  Target Customers: Individuals, businesses, and institutions that require a current account
but do not want to participate in interest-based financial systems.
4. Behtreen Amdan Certificates
 Purpose: This is a long-term savings product aimed at individuals who wish to invest for
the future.
 Features: The Behtreen Amdan Certificate is a Sharia-compliant investment certificate
that offers customers the opportunity to invest in ethical and interest-free ventures. The
profit earned from the certificates is distributed based on the performance of the underlying
assets.
 Target Customers: Individuals looking for a secure, ethical, and profitable long-term
investment option.
5. Bawaqar Bachat Account
 Purpose: Designed specifically for agricultural workers and rural customers, this account
focuses on savings and financial inclusion for the agricultural community.
 Features: Similar to the Asaan Bachat Account, it offers savings opportunities with profit-
sharing but with special provisions that cater to the agricultural sector.
 Target Customers: Farmers and individuals working in the agriculture sector who want
to save their earnings in a compliant, ethical manner.

8.2 Financing Scheme:

NRSP Microfinance Bank Limited offers a variety of financing schemes that provide Sharia-
compliant financing options for personal, business, and consumer needs. The financing products
avoid interest-based transactions, using profit-sharing, leasing, and sales-based contracts to generate
profits and meet the financial needs of customers.
1. NRSP Murabaha
 Purpose: Murabaha is a cost-plus financing arrangement where the bank buys goods and
sells them to the customer at a profit margin, which is agreed upon upfront.
 Features: The customer is informed of the cost price and profit margin, and the payment is
made in installments. This financing product is used for asset purchases like machinery,
vehicles, or equipment.

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  Target Customers: Individuals or businesses looking to purchase goods with the flexibility
of installment payments, but in a manner that complies with Islamic finance principles.
2. NRSP Sala'm
 Purpose: The Sala'm financing scheme is used for the financing of goods that will be
delivered at a future date.
 Features: The bank pays the seller upfront for goods to be delivered later. The customer
agrees to pay the bank back over a set period. The terms of delivery and payment are mutually
agreed upon.
 Target Customers: This scheme is useful for businesses or individuals who need to secure
goods in advance for future delivery but prefer a Sharia-compliant payment structure.
3. NRSP Bike Ijarah
 Purpose: Ijarah is an Islamic leasing agreement where the bank purchases a bike (or other
asset) and leases it to the customer for a fixed period, at the end of which the customer can
own the asset.
 Features: This program is aimed at customers who wish to finance a motorbike but avoid
paying interest. Payments are made over time based on the agreed-upon leasing terms.
 Target Customers: Individuals who need a bike for personal use or employment but cannot
afford to pay for it upfront.
4. Fari Makan
 Purpose: Fari Makan is a home financing scheme that provides funds for purchasing a house
or apartment.
 Features: The bank purchases the property on behalf of the customer and leases it to them.
The customer has the option to purchase the property after a set period. The rent paid during
the lease period helps the customer gradually own the property.
 Target Customers: Individuals or families looking for an affordable way to purchase a home
in compliance with Islamic finance principles.

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5. NRSP Rozgar Ijarah
 Purpose: This is a lease-to-own scheme designed to finance equipment or assets needed for
employment purposes.
 Features: The bank acquires the required assets (e.g., computers, machinery) and leases them
to the customer. The customer makes periodic payments with the option to own the equipment
at the end of the lease term.
 Target Customers: Workers, small businesses, or entrepreneurs who need equipment or
assets to generate income.
6. NRSP Rozgar Murabaha
 Purpose: This financing scheme is aimed at employees or workers who need funds to meet
personal needs, such as for housing, education, or health.
 Features: The bank purchases goods or services and sells them to the customer at an
agreed-upon price, with payment made in installments. It is structured in a way that ensures
the customer is fully informed of the costs.
 Target Customers: Salaried employees or workers in need of personal financing for
specific purposes.

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9. Learning Summary
I completed my internship at NRSP Microfinance Bank, Fathpur Branch, which provided me with
a valuable opportunity to enhance my abilities. Initially, I felt shy and nervous about working with
the staff and navigating the practical banking system, but the supervisors were incredibly
supportive and skilled in training me. I gained numerous skills during my time there that will be
useful throughout my career. The internship not only boosted my confidence but also influenced
my future career plans, as it allowed me to connect theoretical knowledge with real-world banking
practices.

I learned a lot of valuable skills during my internship at NRSP Microfinance Bank.

1. Effective Communication with Customers and Colleagues
 One of the most important aspects of banking is communication. During my internship, I
learned how to interact with both customers and colleagues in a professional and effective
manner.
 Whether it was assisting customers with inquiries, addressing concerns, or collaborating
with fellow employees, I gained confidence in conveying information clearly and
diplomatically.
 I learned how to listen actively to customer needs, which helped me provide appropriate
solutions and ensure a positive customer experience.

2. Excellent Customer Service and Relationship Management

 Customer service is the backbone of banking, and I learned how to deliver excellent service
through face-to-face interactions, phone calls, and email correspondence.
 I observed how staff members build strong relationships with clients, providing them with
personalized service and maintaining long-term trust.
 By actively participating in customer service tasks, I developed the ability to manage
customer expectations, handle complaints professionally, and create a positive experience
for clients.

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3. Problem-Solving in Day-to-Day Banking Operations

 Banking is often about finding solutions to unexpected challenges. Throughout my

internship, I was involved in resolving issues related to accounts, transactions, and customer
queries.
 I learned how to think critically and logically when solving problems, such as resolving
discrepancies in accounts, handling transaction errors, and responding to customer
concerns.
 My supervisors encouraged me to take initiative in resolving issues, which helped me
develop confidence in my decision-making abilities.

4. Teamwork and Collaboration with Staff Members

 The importance of teamwork became evident during my internship, as I regularly

collaborated with colleagues in various departments.
 I learned how to effectively communicate and cooperate with team members to accomplish
common goals. This included assisting with account openings, clearing transactions, and
participating in departmental meetings.
 By working alongside experienced professionals, I understood the significance of a
coordinated effort and the value of diverse perspectives in achieving positive outcomes.

5. Accurate Cash Handling and Financial Transactions

 A significant part of my role involved handling cash and processing financial transactions.
This gave me the opportunity to refine my attention to detail and precision in handling cash.
 I learned how to verify cash deposits, ensure accurate cash counting, and maintain proper
records of transactions.
 The experience also taught me about the security protocols in place to safeguard against
fraud and how to reconcile cash balances accurately.

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6. Understanding of Regulatory Compliance and Procedures

 During my internship, I gained a thorough understanding of the regulatory framework

governing banking operations. I learned about KYC (Know Your Customer) regulations,
AML (Anti-Money Laundering) practices, and other compliance standards that the bank
follows to ensure legal and ethical business practices.
 I observed how the bank adheres to these regulations in all areas, from account openings to
cash handling, and I learned the importance of compliance in maintaining the bank’s
integrity and reputation.
 Additionally, I had the opportunity to understand the procedures involved in processing
remittances and the clearing cycle, which deepened my knowledge of how banking
regulations impact day-to-day operations.

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10. Statement of Financial Position
Balance Sheet
ASSETS 31-Mar-24 31-Dec-23
Rupees in Million Rupees in Million
Cash and balances with treasury banks 2,759,680 2,430,905
Balances with other MFBs / Banks / NBFIs 4,627,414 5,358,586
Lending to financial institutions - 1,022,414
Investments 5,871,690 5,605,817
Advances 35,208,507 34,424,287
Property and equipment 578,830 590,628
Right-of-use assets 761,658 693,803
Intangible assets 13,267 15,265
Deferred tax assets 3,433,902 3,476,890
Other assets 1,049,086 907,885
54,304,034 54,526,480
LIABILITIES 31-Mar-24 31-Dec-23
Rupees in Million Rupees in Million
Bills payable 109,296 90,401
Borrowings 4,545,221 4,872,928
Deposits and other accounts 40,811,183 41,057,861
Lease liabilities 1,015,845 946,075
Subordinated debt 2,277,721 2,237,604
Deferred grants (879) 288
Deferred tax liabilities - -
Other liabilities 3,328,675 3,350,274
52,087,062 52,555,431
NET ASSETS 2,216,972 1,971,049

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REPRESENTED BY
Share capital / head office capital account - net 1,498,372 1,498,372
Advance against future issue of right shares 1,000,000 1,000,000
Statutory and general reserves 1,032,393 983,436
Depositors' protection fund 403,091 389,585
Surplus/ (Deficit) on revaluation of assets (381) (255)
Unappropriated / Unremitted profit (1,716,503) (1,900,090)
2,216,972 1,971,049

10.2 Ratio Analysis

Current Ratio

Current Assets / Current Liabilities

Year 2024 2023

Current Asset 48467291 48842009
Current Liabilities 45465700 46021190
Current Ratio 1.0660 1.0612

Cash Ratio
Cash and Cash Equivalents/Current liabilities

Year 2024 2023

Cash and Cash Equivalents 7387094 7789491
Current Liability 45465700 46021190
Cash Ratio 0.1624 0.1692

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Liquidity/ Acid Test/ Quick Acid Ratio

Liquid Assets / Current Liabilities

Liquid Assets = Current Assets - Advances

Year 2024 2023

Liquid Assets 13258784 14417722
Current Liabilities 45465700 46021190
Liquidity Ratio 0.2916 0.3132

Working Capital

Current Assets - Current Liability

Year 2024 2023
Current Asset 48467291 48842009
Current Liabilities 45465700 46021190
Working Capital 3001591 2820819

Long Term Debt to Equity

Long Term Debt / Shareholder Equity

Year 2024 2023
Long Term Debt 6621362 6534241
Shareholder Equity 2530384 2481553
Long Term Debt to Equity 2.6167 2.6331

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11. SWOT ANALYSIS
A SWOT analysis is a fundamental strategic tool that helps organizations evaluate their internal
strengths and weaknesses alongside external opportunities and threats. By identifying what an
organization does well, where it can improve, and how it can leverage market opportunities while
mitigating potential risks, this analysis provides a comprehensive overview of the organization's
strategic position. It acts as a diagnostic tool that guides decision-making, helping leaders to
harness their strengths, address their weaknesses, seize opportunities, and safeguard against
threats. Through this systematic approach, organizations can develop effective strategies to
enhance their competitive advantage and achieve long-term success.

 Internal Factors
Strength
Weakness
 External Factors
Opportunities
Threats
11.1 Strength:
 Deep-rooted presence in rural areas.
 Customized financial products for micro-entrepreneurs.
 Established community trust.
 Partnerships with government and NGOs.
 Growing adoption of digital banking.
11.2Weakness:
 Limited urban branch network.
 High dependency on agriculture.
 Lower capital base.
 Limited customer awareness in some areas.
11.3 Opportunities:
 Increasing demand for microfinance services.
 Expansion of digital financial services.

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 Diversification of financial products.
 Supportive government policies.
 Focus on women empowerment.
11.4 Threats:
 Economic instability and inflation.
 Rising competition in the microfinance sector.
 Climate change and environmental risks.
 Regulatory changes.
 High credit risk from lower-income borrowers.
11.5 Pestle Analysis:
Pestle Analysis is a strategic management tool used to analyze the external macro-environmental
factors that might impact an organization. It helps businesses understand the broader context in
which they operate by examining four key areas.
1. Political Factors:
 Regulatory changes and compliance requirements.
 Government support for microfinance initiatives.
 Local political stability and its impact on operations.
2. Economic Factors:
 Overall economic growth and its effect on demand.
 Inflation rates and interest rate fluctuations.
 Employment levels and their impact on borrowing capacity.
3. Social Factors:
 Levels of financial literacy among the local population.
 Demographic profile and its influence on service demand.
 Cultural practices affecting customer preferences.
4. Technological Factors:
 Adoption of digital and mobile banking technologies.
 Cybersecurity measures to protect customer data.
 Technology infrastructure and its impact on efficiency.

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 CONCLUSION
My 6 Week internship at NRSP Microfinance Bank Limited, has been an incredibly valuable and
enlightening experience. As an aspiring banking professional, this internship has provided me with
practical insights into the operational aspects of microfinance banking.
During my time at the NRSP Branch, I was fortunate to work closely with various departments,
including Account Opening, Bank Insurance, Debit Card, Cash, and Clearing/Remittance. This
exposure allowed me to gain hands-on experience in the processes that ensure the smooth
functioning of a bank. I particularly focused on understanding the complexities of account opening
for different types of clients, including individual accounts, joint accounts, and partnership
accounts.
The branch staff, was incredibly supportive and instrumental in my learning. Their willingness to
mentor and guide me through every challenge I faced made my internship experience both
productive and enjoyable. I was able to observe firsthand the collaborative environment that drives
the success of NRSP Microfinance Bank, a bank that not only offers financial services but also
works toward uplifting communities through its social and economic initiatives.
My internship at NRSP Microfinance Bank, has solidified my aspiration to pursue a career in
banking. The experience has been an essential part of my personal and professional growth,
providing me with the skills and confidence needed to excel in the banking sector. I am grateful
for the opportunity and for the knowledge imparted by the staff at the branch.

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 Reference:

1. Branch manager Zulfiqar Ali

2. Operation manager GHULAM MUSTAFA MUZAMMIL
3. Co-ordinator operations Qadeer Ashraf
4. Teller Hamza Aslam

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