National Bank Of Pakistan

1|Page
National Bank Of Pakistan

2|Page
National Bank Of Pakistan

Letter of Undertaking
I mahnoor Naveed Tarar Student of The university of Punjab Gujranwala campus hereby
confirm that the Internship Report I have provided is solely my own effort. I did not copy
my report partially or completely from any other student or from any other source either
against payment or free and I did not provide any plagiarized material in any section of
my report. I further confirm that the document (Internship letter.) that I have provided
are genuine (i.e. not forge/fake) and have been issued by the authorized person in the
organization. If I am found guilty of misstating, misleading or concealing the facts about
my activities (either academic or non-academic but relevant to this course) at any
stage, the university is authorized to take disciplinary action against me according to
university policies and regulations.

Thank you!

Mahnoor Naveed Tarar

3|Page
National Bank Of Pakistan

4|Page
National Bank Of Pakistan

Acknowledgement
For the completion of my report, I am indebted to plenty of people for their very sincere
cooperation that they extended to me at various stages. First and foremost problem that
every student faces is the completion of a report is gathering of data while it is very
difficult to learn C rotate in different department of the bank especially in National Bank
of Pakistan where work burden is quite higher compare with other banks. On the other
hand there is too much short time of our internship (six weeks), furthermore staffs of the
bank are too busy in their work so that we cannot be able to learn and do according to
our report requirement.I am very thankful to staff members of National Bank of
Pakistan,Atta Building Branch Gujranwala for guidance and providing me valuable
information regarding my report completion.Finally I am thankful to the most merciful
and Almighty Allah who gives me the strength that I fulfill my task efficiently.

Executive summary

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

Another purpose of this Internship program is to enable the students to use the
management techniques acquired during their courses, and find out the possible
solution of management problems faced by the organization.The report is based on my
six week internship program in National Bank of Pakistan. The methodology reported for
collection of data is primary as well as secondary data. The biggest source of
information is my personal experience, observation while working with staff and having
discussion with them. The annual report 2008 also helped me in this regard.

5|Page
National Bank Of Pakistan

Table of contents

Chapter 1

1 Introduction
1.1 Objective
1.2 Background
1.3 Job Satisfaction
1.4 Banking sector
1.5 scope of studies
1.6 Research Methodology
1.7 Roles
1.8 Departments
1.9 Debit cards
1.10 Services
1.11 Competitors

Chapter 2

2 Overview of the organization

2.1 Nature of bank
2.2 Structure,process system
2.3 Mission
2.4 Vision
2.5 Core values
2.6 goals
2.7 Product outlines
2.8 Branches
2.9 Organizational structure
2.10 Products offered by National Bank

6|Page
National Bank Of Pakistan

Chapter 3

2 swort Analysis
3.1 PEST Analysis
3.2 Contribution of NBP

Chapter 4

4 Marketing
4.1 Achieving Superior Performance
4.2 Competitive space
4.3 segmentation
4.4 Target market
4.5 Market Positioning
4.6 4 P’s of marketing

Chapter 5

Analysis
5.1 financial Analysis
5.2 ratio Analysis

Chapter 6

6 Work done by me
6.1 introduction to the branch
6.2 management system

6.3 Strategies

7|Page
National Bank Of Pakistan

6.4 Different departments where i worked

6.5 summary of learning
6.6 achievements
6.7 problems
6.8 recommendations
6.9 conclusion

8|Page
National Bank Of Pakistan

Chapter 1

1. Introduction
It is a brief introduction of internship report, why I done internship in National Bank of
Pakistan. Because it was requirement of my Bba and to get the experience how to work
in practical life, how we deal and behave with related people. And after that I have done
it to increase my knowledge which has gained from the books to increase my
confidence. There is also includes Objectives of studying the organization, an outline of
the scope, purpose of internship and the methodology through which I learned also
discussed.

1.1. Objective of study the organization

The main reason of this internship is to completion of the requirements for the degree of
MBA program. For this connection each student of these particular courses is
compulsory to carry out training in an appropriate organization chosen by them, for a
period of 6 weeks.The secondary objective of this job is to realize how the academic
knowledge can be useful to the practical situations and look at an organization’s
financial matters and recognize its opportunities or problems and also recommend
corrective procedures. This internship is also very essential to get confidence and
become aware of the method of an organization. As an internee I want to achieve
following objectives during my internship and organization study:

• To make known with a business organization.

• To familiarize with the different departments in the organization and their
functioning.
• To enable myself to understand how the key business process are carried out in
organization.
• To relate theory with practice. I was also keen to gain professional experience in
an actual testing environment.
• I want to develop my skills in the application of theory to practical work
situations, to develop my attitude conducive to effective interpersonal

9|Page
National Bank Of Pakistan

relationships and to develop my interpersonal communication because you are

less likely to find a job without all these skills.
• To acquire good work habits and sense of responsibility.
• To enhance my learning experience by application of fundamental concepts
previously learned.
• Choose the bank for internship because I have a great interest in banking and
management because banks are playing very important role in the development
of economy.

1.2. Bank’s background

The NBP was established vide NBP Ordinance No. XIX of November 9. 1949.
British Govt. Devalued its currency in September 1949, India devalued its rupees
but Pakistan did not. It led to a crisis in trading between the two countries and
India refused to lift the Pakistan Jute. To solve this problem i.e. to export jute NBP
was established through an Ordinance of GOP. National Bank of Pakistan
maintains its position as Pakistan’s premier bank determined to set higher
standards of achievements. It is the major business partner for the Government
of Pakistan with special emphasis on fostering Pakistan’s economic growth
through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches locally,
internationally and representative offices.
National Bank of Pakistan is the largest commercial bank operating in Pakistan.
Its balance sheet size surpasses that of any of the other banks functioning
locally. It has redefined its role and has moved from a public sector organization
into a modern commercial bank. The Bank’s services are available to individuals,
corporate entities and government. While it continues to act as trustee of public
funds and as the agent to the State Bank of Pakistan (in places where SBP does
not have a presence) it has diversified its business portfolio and is today a major
lead player in the debt equity market, corporate investment banking, retail and
consumer banking, agricultural financing, treasury services and is showing
growing interest in promoting and developing the country’s small and medium
enterprises and at the same time fulfilling its social responsibilities, as a
corporate citizen.
National Bank of Pakistan has built an extensive branch network with 1250
branches in Pakistan and operates in major business centre abroad. The Bank
has representative offices in Beijing, Tashkent, Chicago and Toronto. It has
agency arrangements with more than 3000 correspondent banks worldwide. Its
subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP Capital
Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank, Almaty,

10 | P a g e
National Bank Of Pakistan

Kazakhstan. The Bank’s joint ventures are, United National Bank (UK), First
Investment Bank and NAFA, an Asset Management Company (a joint venture
with NIB Bank C Fullerton Fund Management of Singapore).
The Bank’s financial performance has been remarkable. In 2006, total assets are
estimated at Rs635 billion, while deposits have grown to nearly Rs502 billion.
Pre-tax profit rose to Rs26 billion. Earnings per share have jumped to Rs24.01 in
2006. The increase in profit was achieved through strong growth in core banking
income. Interest income increased by Rs10 billion through growth in the loan
portfolio as well as increase in spreads. Advances increased by Rs48 billion to
Rs316 billion. The Bank maintains a sound loan portfolio diversified in nature to
counter the risk of credit concentration. It ranges from providing credit to the un-
banked market segment under NBP Karobar, to small and medium enterprises,
to agricultural loans, to large corporate customers.

1.3. Job satisfaction

Job satisfaction is a measure of workers’ contentment with their job, whether
they like the job or individual aspects or facets of jobs, such as nature of work or
supervision.Job satisfaction can be measured in cognitive (evaluative), affective
(or emotional), and behavioral components.Researchers have also noted that
job satisfaction measures vary in the extent to which they measure feelings
about the job (affective job satisfaction).or cognitions about the job (cognitive
job satisfaction).One of the most widely used definitions in organizational
research is that of Edwin A. Locke (1976), who defines job satisfaction as “a
pleasurable or positive emotional state resulting from the appraisal of one’s job
or job experiences” (p. 1304).Others have defined it as simply how content an
individual is with their job; whether they like the job. It is assessed at both the
global level (whether the individual is satisfied with the job overall), or at the
facet level (whether the individual is satisfied with different aspects of the
job).Spector (1997) lists 14 common facets: appreciation, communication, co-
workers’, fringe benefits, Job conditions, nature of the work, organization,
personal growth, policies and procedures, promotion opportunities, recognition,
security, and supervision.

1.4. Banking sector

The word ‘Bank’ is said to have been derived from the words Bancus or Banque or
Bank. This history of banking is traced to as early as 2000 B.C. The priests in
Greece used to keep money and valuables of the people in temples. These
priests thus acted as financial agents. The origin of banking is also traced to early
goldsmiths. They used to keep strong safes for storing the money and valuables

11 | P a g e
National Bank Of Pakistan

of the people. The persons who had surplus money found it safe and convenient
of deposit their valuables with them. The first stage in the development of
modern banking, thus, was the accepting of deposits of cash from those persons
who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These
receipts began to pass from hand to hand in settlement of transactions because
people had confidence in the integrity and solvency of goldsmiths. When it was
found that these receipts were fully accepted in payment of debts; then the
receipts were drawn in such a way that it entitled any holder to claim the
specified amount of money from goldsmiths. A depositor who is to make the
payments may now get the money in cash from goldsmiths or pay over the
receipt to the creditor. These receipts were the earlier bank notes. The second
stage in the development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money
with them do not come to withdraw their funds in cash. They found that only a
few persons presented the receipts for encashment during a given period of
time. They found that only a few persons presented the receipts for encashment
during a given period of time. They also found that most of the money deposited
with them was lying idle. At the same time; they found that they were being
constantly requested for loan on good security. They thought it profitable to lend
at least some of the money deposited with them to the needy persons. This
proved quite a profitable business for the goldsmiths. They instead of charging
safe keeping charges from the depositors began to give them interest on the
money deposited with them. This was the third stage in the development of
banking.

1.5. Scope of Studies:

As an internee in National Bank of Pakistan the major focal point of my internship was
on general banking method in one of the branches of NBP. These operations include

• Remittance department
• Advances department
• Clearing department
• Account opening department
• EBS department
• Government department and also other different aspects of overall of
NBP are also covered in this report.

12 | P a g e
National Bank Of Pakistan

During internship I worked in all departments and learned a lot during that period. Its
scope is wide because I moved in all departments of bank during internship so i got
surface knowledge of all areas of bank. It really helps me in recruitment job.

1.6. Research Methodology:

The statement is stand on my six week study in National Bank of Atta building branch,
The methodology reported for compilation of data is primary as well as secondary data.
Personal observation was my main source getting information while working with bank
staff and having conversation with them. Formally arranged discussions and
negotiations also helped me in this regards.

Primary data:
◆ Personal observations

◆ Interviews of bank staff

Secondary data:
• Internet
• Journals
• Magazine
• Annual reports

1.7. 4 roles of national bank

2. Pay government bills and issue public debt
3. Issue a common currency that people can transact with
4. Assist businesses by facilitating their daily transactions, including cash deposits
and lending
5. Collect taxes and initiate the auction of the country's Treasury bonds.

1.8. Departments of National Bank

1. Consumer Banking
- Retail banking services for individual customers

13 | P a g e
National Bank Of Pakistan

2. Corporate Finance
- Advisory and financing services for businesses and corporations

3. Investment Banking
- Underwriting, mergers and acquisitions, and other investment-related services

4. Agricultural Banking
- Banking products and services tailored for the agricultural sector

5. Transactional Banking
- Services related to processing financial transactions for businesses

6. Operations
- Overseeing the day-to-day operational aspects of the bank

7. Software Development and Automation

- Development and implementation of banking software and automation systems

8. Financial Control
- Accounting, budgeting, and financial reporting functions

G. Treasury
- Managing the bank’s liquidity, investments, and funding

14 | P a g e
National Bank Of Pakistan

10. Internal Audit

- Evaluating and improving the effectiveness of the bank’s risk management, control,
and governance processes

11. Risk Management s Credit

- Identifying, assessing, and mitigating various risks faced by the bank

- Evaluating and approving credit applications

12. Economic s Business Research

- Analyzing economic trends and providing insights to support business decisions

13. Training s Development

- Designing and delivering training programs for bank employees

14. Strategic Planning

- Developing and implementing the bank’s long-term strategic objectives

15. Human Resources

- Managing the bank’s workforce, including recruitment, compensation, and
employee relations

15 | P a g e
National Bank Of Pakistan

1.G. Debit Cards

16 | P a g e
National Bank Of Pakistan

1.10. PRODUCT/SERVICES OFFERED BY THE NATIONAL BANK OF

PAKISTAN
With the passage of time National Bank of Pakistan introduced variety of products and
services.

The bank now deals in almost all products that commercial banks deal in.

PRODUCT/SERVICES OFFERED
Treasury Products
a) Pakistan Investment Bond
b) Derivatives Products
I. Currency Options
II. Interest Rate Swaps and FRAS

17 | P a g e
National Bank Of Pakistan

Hedges the Interest Rate risk A client can convert a fix rate loan into floating rate one or
vice versa by using these derivative instruments

Cross Currency Swaps

Hedges the Interest Rate Risk This product allow a client to convert its rupee based
loans into a dollar based loan. The client’s exposure is shifted from PKR KIBOR to USD
LIBOR.

Home Financing
a) Home Purchase

b) Home Construction

c) Home Renovation

d) Purchase of Land + Construction

e) Balance Transfer Facility (BTF)

Insurance Product

Term Deposits or Time Deposits

PLS Saving Accounts
Internet Based Home Remittance Service
Agricultural loan
Micro Finance

Islamic Banking Products and Services

1) Deposit Scheme
a) Current Deposit.

b) Profit C loss Sharing Deposit ( PLS) Scheme

18 | P a g e
National Bank Of Pakistan

2) Financing Facilities
a) Ijarah (Leasing)

b) Other Services

International Banking Services

1) Trade Services
2) Trade Financing
3) International Payments and Collection Services
4) Structured Trade Finance
5) Exporter's Needs

1.11. List OF COMPETITORS

Following Banks can be termed as the competitors of the National Bank of Pakistan.

• Bank Alfalah
• Muslim Commercial Bank
• Habib Bank
• Meezan Bank
• Allied Bank
• United Bank
• First Women Bank
• Bank of Punjab etc

19 | P a g e
National Bank Of Pakistan

Chapter 2

2. Overview of the organization

2.1. Nature of Bank
The state bank recommended the setting up a new banking institution to serve both as
an agent to the state bank as well as the spearhead of it credit policies. Then the
‘National Bank of Pakistan’ was setup under an ordinance in November 1949.

“National Bank of Pakistan” is a service oriented financial institution. He is working for

its customers besides making profit for the organization. This financial institution
required the customers both retail and corporate banking facilities. It also commences
the govt. Transactions like govt. Accounts, govt. Drafts and payments services of the
bank thus can be categorized as under.

• Basic banking like borrowing and lending of money

• Discounting of ‘Bills of Exchange’ and ‘foreign exchange.
• Buying and selling bullion and foreign Exchange
• Collecting Negotiable instruments on behalf of the customers.
• Generating Latter of Credit
• Receiving valuable goods for safe custody.
• Acting of agents on behalf of the customers
• Different offers for the customers for their benefits.
• Work as a clearing house on behalf of the State bank of Pakistan
• For small cities work as a main bank on behalf of the ‘State Bank of Pakistan

2.2. STRUCTURE, SYSTEM AND PROCESS

As we know that structure basically determines the composition of business so
NBP has different structure according to different department like Finance
department has finance structure, marketing department has marketing
structure. They NBP have different structure banks structure.

After the elimination of Pakistan Banking Council, each bank was put under the
supervision of an independent board of directors. Since the new organizational
structure of the bank, National Bank of Pakistan constitutes a board of directors and an
executive committee as the governing bodies. The Head office is operationally in charge
of central affairs including the delegation of powers and authority to 9 Regional
Headquarters allover the country. These Regional Headquarters direct the functions of

20 | P a g e
National Bank Of Pakistan

the 40 Zonal Offices and 12 Corporate Branches. The Head Office has 9 divisions that
are further divided into wings.

Board of Directors nominates the members of the executive committee and executive
committee nominates divisional Heads.

The HRP processes of national bank of Pakistan are:

• Interfacing with strategic planning and scanning the environment.

• Taking an inventory of the company's current human resources.
• Forecasting demand for human resources.
• Forecasting the supply of HR from within the organization and in the external
labor market.

2.3. MISSION
NBP will aspire to the values that make NBP truly the Nation’s Bank, by:

• Institutionalizing a merit and performance culture

• Creating a distinctive brand identity by providing the highest standards of
services
• Adopting the best international management practices
• Maximizing stakeholders value
• Discharging our responsibility as a good corporate citizen of Pakistan and in
countries where we operate.

2.4. Vision

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

service quality, international best practices and social responsibility.

2.5. CORE VALUES

• Highest standard of integrity.

• Institutionalization of team work C performance culture.
• Excellence in service.
• Advancement of skills for tomorrow’s challenges.
• Awareness of social C community responsibilities.
• Value creation for all stakeholders.

21 | P a g e
National Bank Of Pakistan

2.6. GOAL
To enhance the profitability and maximization of NBP’s share through the increasing
leverage of existing customer base and diversified range of products

2.7. THE PRODUCT OUTLINES

National Bank of Pakistan has launched many programs to suit the needs of people of
different sectors. These programs include.

• NBP Advance Salary.

• NBP Saiban.
• NBP Kisan Dost.
• NBP Cash in Gold.

2.8. BRANCHES
The Bank had a network of 1531branches in the country and 28 branches in foreign
countries. These countries are as follows:

1)- United States of America

2)- United Kingdom

3)- France

4)- Germany

5)- Africa, Middle East Region

6)- Bahrain Obu

7)- Asia Pacific Region

8)- Japan

9)- Republic of Korea

10)- Central Asian States

11)- Bangladesh

12)-Peoples Republic of China

13)-Pakistan

22 | P a g e
National Bank Of Pakistan

Types of Branches
• There are a lot of different branches of National Bank of Pakistan. We explain
them one by one.
• There are main branches in every city. In one city there is only one main
branch, it is directly under the zonal office.
• Then there are commercial branches. These are the ordinary branches and
are in the commercial areas such as the Mall Road Branch.
• The Industrial Branches are exclusively in industrial zones.
• There are also Residential Branches. These are exclusively in residential
colonies.
• Another type is the Mixed Branch such as civil secretariat branch. Every kind
of work is done.
• There are also Project Branches created for specific purposes i-e the project
and are at the site.
• Another unique type is the Model Branch. No other bank in Pakistan has
these. In these branches all the work is done by the officers. Even the officers
sit on the counters. Model Branches are in Karachi, Lahore and Islamabad

Domestic Network
Regional Offices 29 Branches 1254

Online Branches 147

Subsidiaries 4

Overseas Network
Overseas Branches 22

Representative Offices 4

Subsidiary 2

Joint Venture 1

23 | P a g e
National Bank Of Pakistan

NBP ATM NETWORK

Cities NUMBER OF ATM’S

1) Burewala 01
2) Faislabad 06
3) Gujar Khan 01
4) Gujranwala. 04
5) Gujrat 01
6) Hyderabad 06
7) Islamabad 16
8) Karachi 21
9) Lahore 13
10) Mirpur 02
11) Multan 04
12) Muzaffarabad 03
13) Peshawar 04

24 | P a g e
National Bank Of Pakistan

14) Quetta 04
15) Rawalpindi 05
16) Sheikhupura 01
17) Sialkot 03
18) Taxila 01
19) Wah cantt 01

Main offices:
The Head Office of the National Bank of Pakistan is at Karachi. NBP grip on its
business all the means through a large set up of branches those are positioned in
the country and also out of the country very efficiently and in point of fact. All
branches carry out their jobs under the regulation of local Regional Offices and
regional offices are restricted by the Head Office placed an outstanding building in
the heart of Karachi’s center.

NBP has a wide domestic branch network consist of more than 1250 branches
located in all over the country. NBP has also more than 24 branches out of the
country.

President
All Groups/Departments are headed by Group/Department Chiefs. President is the
head of all Group Chiefs. All strategic matters are discussed and approved by the
president and Group Chiefs.In Head Office following are the Group/Department
Chiefs:

1) Operations Group Chief

2) Corporate C Invest. Group Chief
3) Special Assets C Remedial Mgt. Group Chief
4) Strategic Planning C Economic Research Group Chief
5) Treasury Mgt Group Chief
6) Risk Mgt. Group Chief
7) Commercial C Retail Banking Group Chief
8) Audit C Inspection Group Chief
9) I.T. Planning Dept. C Implementation Group Chief
10) HRM Dept. Chief
11) Org. Development C Training Dept Chief
12) Over-seas Operations Chief

25 | P a g e
National Bank Of Pakistan

Regional Offices
The network of National Bank of Pakistan is divided into 29 regions within Pakistan.
Detail of these regions is in annexure. In all Regions all Group Chiefs have their
respective assistant as Regional Group Chief for that group. Regional Group Chiefs
are directly reported to concerned group chief. Following are the list of Regional
Group Chief.

1) Regional Business Chief

2) Regional Operation Chief
3) Regional HR Head
4) Regional Compliance Chief
5) Regional Credit Head
6) Regional Corporate C Investment Head
7) Regional Commercial C Retail Banking Head
8) Regional Audit C Inspection Head
9) Regional I.T. Planning C Implementation Head
10) Regional Org. Development C Training Head

Branch Offices
National Bank of Pakistan have vast network of branches in Pakistan. National Bank
of Pakistan has 1254 braches throughout Pakistan at the end of December, 2008. In
a branch setup following are the designation responsible for the implementation of
policies and procedures.

SINDH:

In the Sindh the main offices of the NBP are in the following cities:

• Karachi

◆ Dadu/ Sanghar

◆ Hyderabad

◆ Jacobabad/ Shikarpur

◆ Larkana

◆ Mirpurkhas/ Badin

• Nawabshah/ N' Feroze

◆ Sukkur/ Khairpur

26 | P a g e
National Bank Of Pakistan

PUNJAB:
Punjab has the main offices of the NBP in the following cities;

◆ Lahore

◆ Faisalabad

◆ Gujranwala

◆ Sialkot/ Narowal

◆ Islamabad

◆ Jhang

• Jhelum/ Gujrat/ Chakwal

◆ Bahawalpur

◆ D.G. Khan/ RYKhan

• Multan/ Baha’nagar
• Murree/ Attock/ Gilgit
• Rawalpindi

◆ Sahiwal

◆ Sargodha/ Sheikhupura

NWFP:
In the NEFP main offices are in the following cities;

◆ peshawar

• Abbott Abad

◆ D.I. Khan

◆ Kohat

◆ Mardan

27 | P a g e
National Bank Of Pakistan

BALUCHISTAN:

Main Branches of NBP are in the following cities;

◆ Quetta

◆ Azad Kashmir

• Muzaffarabad
• Mirpur

In addition to this NBP also has its branches working in other countries. The
countries where NBP branches are located are USA, Canada, Germany, France,
Bahrain, Egypt, Bangladesh, Hong Kong, Japan, South Korea, Peoples Republic of
China, Afghanistan, Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan,
Azerbaijan, and Saudi Arabia.

Branch Network of NBP

➤ Domestic s Overseas Branches

• There are more than 1289 branches all over the world
• The bank is focusing mainly within the country

➤ Number of Branches
• There are 1266 Domestic Branches (As of December 2010)
• There are 23 Overseas and 4 Representative Offices
• There are 5 Subsidiaries and a Joint Venture

➤ Representative Offices
Four Representative Offices are in the cities of China(Beijing), Uzbekistan(Tashkent),
USA(Chicago) and Canada(Toronto)

28 | P a g e
National Bank Of Pakistan

2.G. Organizational structure

In National Bank of Pakistan, the head is called “Chairman” or “President” of the Bank.
And after President there is Five Broad of Directors. National Bank of Pakistan has
eleven Groups which control the working of the Divisions, Wing, Department, Section
and Regional of the national bank of Pakistan. In NBP, “Department” is called “Wings”.

National bank of Pakistan divided their task in to separate jobs. Basically national Bank
of Pakistan having different groups, and each group perform different task specialization
in their department. National Bank of Pakistan Categories their departments through
their work specialization. And NBP hire their employees also through work
specialization. The following Chart shows the Work Specialization in the bank. HRM C
Administration, Operation, Commercial C Retail Banking, and I.T Group are performing
different working in the Organization.

29 | P a g e
National Bank Of Pakistan

National Bank of Pakistan is structurally divided into Groups and groups are also
subdivided into Departments, Wings, and Divisions. National Bank of Pakistan has
different Department in the Group and each department performing work, as their task
assign. Department also subdivided into working bases

Geographic department

Process department

30 | P a g e
National Bank Of Pakistan

Customer department

National Bank of Pakistan (NBP) provides Services through more than 1200
branches in Pakistan and 22 branches in overseas. And there are Regions.
All Branches of National Bank of Pakistan report to five Head of RMT
Members. And these five members reported to regional Offices. Regional
Offices report to the Group Chief of the Groups. All the process is working
very quickly and it not consume more time. And the Group Chief of each
Group Report to the President of the National Bank of Pakistan. All the data
were proceed to the President of the bank.

31 | P a g e
National Bank Of Pakistan

National Bank of Pakistan is relatively Wide span of control and Flat Structure. National
Bank 0f Pakistan are less layers of management to pass a message through, so the
message reaches more employees faster. More skillful Group Chief Managers can
control a greater number of employees. National Bank of Pakistan assess that the
internal Control environment is showing signs of improvement as compared to previous
year in all areas of the bank.

Comments on NBP’s Structure:

National Bank of Pakistan hold a technical Structure, it is a structure that strain
extremely regular working tasks accomplished through specialty, in NBP’s structure
greatly modified rules and regulations are followed, everyday jobs are assembled into
functional departments, narrow spans of control, centralized authority, and decision
making that follows the chain of command. National Bank of Pakistan has very
centralizes structure and right decision are taken at the right time. Head office issues
policies and these policies put into perform within the bank as per the strategy. There is
a branch manager who looks after the entire work within the branch and he/she directs
the working of the bank according to the commands. He/she has the skills of advance
response to shifting situation, high capability of conflict resolution. Every person
working in each department is allocated various activities which raise their task
performing skills. Every department focus at its own work no one has intervention in
other department. It increases the proficiency of each department, as there is no
external participation by any person. They are not answerable to any person with whom
they are not directly concerned.

The structure of NBP decreases the uncertainty and complication. The tasks are
appropriately hand over to the bank officer who known well about that specific work.
Everyone knows in case of emergency to whom they will report and what to do in time of
disaster. All officers are well supportive and help out each other in their work. This
structure contains a friendly work environment. Every employee of NBP is given
promotion opportunity. Overall, the entire environment of NBP bank is very well
recognized and excellent. It is a well-defined structure.

32 | P a g e
National Bank Of Pakistan

2.10.Products offered by NBP

National Bank of Pakistan serving following product lines:

Premium Aamdani Scheme

Unprecedented Safety - Unprecedented Return

Monthly Income Scheme

A monthly income scheme introduced by National Bank of Pakistan for investors as well
as for general public. Incentives are available for investors providing finance facility
against these certificates and also allowed to customers to convert existing deposits
into National

Bank Premium Aamdani Certificates

• Earn up to 12.25% p.a. +

• NBP Premium Aamdal
• Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/- for 5
years
• Free Demand Draft, Pay Order and Cheque Book
• Convenience of NBP online Aasan Banking (for online banking customers)
• Free NBP Cash Card (ATM+Debit)
• Running finance facility up to 90%
• Profits paid on monthly basis

33 | P a g e
National Bank Of Pakistan

http://www.nbp.com.pk/Aamdani/index.aspx

Premium Saver Scheme yours saving reward

(Pls saving account)

• Yours saving reward

• Earn up to 8.50% p.a. +
• Minimum saving balance of Rs. 20,001/- C a
• NBP Premium Saver
• Maximum balance of Rs. 1 million*.
• Free NBP Cash Card (ATM + Debit)
• Convenience of NBP Online Aasan Banking (for online banking customers)
• Two debit withdrawals allowed in a month C no limit on number of deposit
transactions
• Profit calculated on monthly and paid on half yearly basis

34 | P a g e
National Bank Of Pakistan

http://www.nbp.com.pk/Premium/index.aspx

President’s Karobar Scheme Mera Apna Karobar

National Bank of Pakistan is providing financing under President Karobar Scheme with
the cooperation of government of Pakistan. The purpose of this scheme is to reduce
unemployment from the country. Main features are as under

• Minimum down payment, 10% of asset price (5% for PCO C Telecaster)
• Tenure of loans 1 to 5 years (for PCO 2 years)
• Grace period 3 months
• Maximum loan amount Rs. 200,000/-
• Age 18-45 years
• 786 Mark-up (variable) 1 year KIBOR + 2.00% p.a.
• The customer will pay markup @ 6% p.a., rest will be borne by GOP*
• Life C disability insurance paid by GOP
• NBP’S loan available for:
1. Utility Store,
2. Transport
3. PCO/Tele-centers

35 | P a g e
National Bank Of Pakistan

Saibaan Scheme Open the Door to Your Dream Home

(Home Financing)

National Bank of Pakistan lending for construction of home to general public as well as

employees of government and non-government institutions. Main features of this

scheme are as under.

• Finance is available for:

1. Home Purchase
2. Home Construction
3. Home Renovation
4. Purchase of Land +Construction
5. Balance Transfer Facility (BTF)
• Period of repayment ranges between 30-20 years.
• Loan available up to a maximum of Rs. 15-20 million.
• NBP provide markup choices to its consumer i.e. Variable Discount Rate, Fixed
rate.
• Minimum approval and disbursement timing.
• Limited to areas where there are no documentations, fee, resale and foreclosure
• Related issues, so to protect the bank’s interest.
• Service duration: Two years for salaried class Three years for self
Employed/business class.

36 | P a g e
National Bank Of Pakistan

http://www.nbp.com.pk/Saibaan/index.aspx

Advance Salary Scheme Personal Loan

Take up to 20 times of Your Take Home Salary

Personal Loan

• Easy installments of 1 to 60 months at your choice

• No minimum income collateral C insurance charges required
• Quick processing and fastest disbursement
• The product is for permanent employees of Government, Semi Government and
• Autonomous bodies receiving salaries through NBP accounts.

http://www.php.com.pk/advancesalary/index.aspx

Cash Card Scheme one card does it all

ATM + Debit Card

NBP Cash Card is a 24-hour direct access ATM/ Debit card

To an bank account, which lets pay directly from the account as alternative payment
method to cash. The transaction is authorized and processed by entering PIN. The NBP
Cash Card holders are able to transact at any of the 4000 + Merchants where Orix logo
is displayed and can withdraw cash from NBP, 1-Link C M-NET ATM's across the count.

• Use it as an ATM in any of the ATM's in Pakistan

• Use it as Debit Card in any of the outlets with ORIX POS machine

37 | P a g e
National Bank Of Pakistan

• Cash withdrawal up to Rs. 20,000/- per day

• Account Balance Enquiry
• Mini Statement (Only at NBP ATM)
• PIN Change facility (Only at NBP ATM)
• Investor Advantage Scheme easier financing, profitable trading
• Financing Facility for Stock / Retail Investors
• Comfortable and secure environment for trading
• No security requirement from the customer except for the customer's equity
• Customer's equity freely available for investment.
• Equity acceptable in cash or approved share

Eligibility

• Pakistani Nationality with computerized national ID Card

• Over 21 years of age
• An account with NBP designated Branch
• Equity in the form of cash or NBP approved shares
• No default with any financial institution

Application Procedure

• Obtain facility application form the NBP Marginal Desk at designated branches
• Fill in the application form and submit it to the branch
• On application approval, deposit equity as cash in the margin financing account
at the bank. Alternatively NBP approved shares can also be deposited in the NBP
CD Account (CDC A/c No. 2345)
• Start trading through comfortable C friendly trading centers establishment for
you (In Collaboration with Taurus Security Limited a subsidiary of NBP)
• Trading limit available for the amount of equity + bank financing.

38 | P a g e
National Bank Of Pakistan

Cash n Gold Scheme encash and meet your needs

Ready Cash Against Gold

With NBP’s Cash n Gold, provide facility for ready cash against idle gold jewelry with
Gold minimum limit and provide extra benefit. The main features are:

• Facility of Rs. 20, 000/-against each 10 gms of net weight of Gold Ornaments
• No maximum limit of cash
• Repayment after one year
• Roll over facility
• No penalty for each repayment

http://www.nbp.com.pk/CashnGold/index.aspx

Kisan Dost Scheme Agriculture Made Easy Agriculture Farming Program

39 | P a g e
National Bank Of Pakistan

National Bank of Pakistan is lending in agricultural field. National Bank of Pakistan is

lending farmers for development of agriculture sector of the country under certain
terms and condition.

NBP provide loan to farmers for production, development purposes, for purchase of
tractors, for installation of tube wells, for purchase of agricultural instruments, micro
loan, for construction of godan, for construction of fish pond, for development of
livestock and farming, for mil processing, for cold storage, bio-gas plants.

• Competitive mark-up rate.

• Quick C easy processing
• Delivery at the farmer’s doorstep
• Technical guidance to farmers
• Wide range of financing schemes for farmers
• Finance facility up to Rs. 100,000/- for landless farmers against personal
guarantee
• Financing available against pass book, residential/commercial property, gold
ornaments and paper security
• Loan facility on revolving basis for three years (renewable on yearly basis without
documentation and approval)

http://www.nbp.com.pk/KisanDost/index.aspx

Kisan Taqat Scheme promise of prosperity

Dairy Farm Scheme

National Bank of Pakistan is providing loans for the dairy farms and for the development
of the livestock and dairy farms.

• NBP facilitates with livestock experts

• Less documentation and easy to repay
• Available at the next door step
• Scheme is available in more than 60 branches of NBP

http://www.nbp.com.pk/Kissan Tagat/index.aspx

40 | P a g e
National Bank Of Pakistan

PakRemit Scheme

NBP’s Internet Based Home Remittence Service

Product Information
Pakremit is an internet based Home Remittance Service. This service is available to U.S.
residents for sending money to their family and friends in Pakistan. One must have a
valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to
remit funds through this channel.

Remitters in USA can log on to our user friendly website, www.pakremit.com and easily
remit funds to Pakistan from the comfort of their homes, in a matter of minutes. The
service is a fully secure with advance encryption application and is available for use 24
hours a day, 7 days a week. Fees and exchange rate have been set at competitive levels
and the remitters have the ability to track delivery of funds as well.

USPs (Unique Selling Propositions)

• Convenient and Fast
• Reliable and Secure
• Available 24 x 7

41 | P a g e
National Bank Of Pakistan

NBP Protection Shield Scheme Life is Precious

Personal Accident Insurance

• No documentation
• No medical required
• Premium Auto Debit facility C choice of deactivation
• Coverage includes death due to:
• Natural Calamities e.g. Earthquake, Flood, Cyclone etc.
• Accident
• Riots
• Civil Commotion
• Strikes
• Acts of Terrorism

NBP Protection Shield

(Life is Precious)

Critical Analysis
• As I read about CRM, organizational culture, etc, at different stages of BBF in
different courses, I found most of the things are not present in NBP. Factors are
like; poor customer dealing by bank staff.
• There is no discipline in organization.
• most of the staff members come late than on time. Customers have to wait for
them.

42 | P a g e
National Bank Of Pakistan

• If any one comes late in office, HR Manager points him/her out, and takes
necessary action but no one gives importance or listens the HR Manager
• HR Manager of NBP regulates the employees to come in time and their own
work, as major part of the work is done by those internees who have been trained
by them.
• Staff training is needed to teach them how to deal efficiently with customers
especially with old aged customers.
• Such staff members are not mentally prepared to adopt new technologies to fill
the gap.
• No proper facility to accommodate the customers and no proper information
desk which can provide information to the customers.
• No proper check and balance on employees discipline.
• There is a lack of motivation in the bank.
• HR Manager is educated enough to perform his\her duties but somehow,
somewhere, he is unable to control the whole situation as this can be done only
when cooperation from both sides. Here cooperation from the staff side is
missing.
• Internees are not entertained well.

43 | P a g e
National Bank Of Pakistan

Chapter 3

3. SWOT ANALYSIS
This section of report constitutes the SWOT Analysis of NBP.

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

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

STRENGTHS
• OLDEST INSTITUTION
• ALTERNATE DUTIES IN SBP ABSENCE
• MORE DEPOSITS THAN OTHER BANKS
• EMPLOYEE BENEFITS
• BROAD NETWORK

44 | P a g e
National Bank Of Pakistan

❖ STRICTLY FOLLOWED RULES s REGULATION

• PROFESSIONAL COMPETENCE
• HEALTHY ENVIROMNMENT

❖ RELATION BETWEEN STAFF AND OTHER EMPLOYESS

• STABILITY IN POLICIES RESULT BATTER EFFICIENCY

• EXPERIENCED AND EFFICIENT MANAGEMENT

❖ NEW CONCEPT OF MANAGEMENT TRAINEES (MTOS)

WEAKNESSES

❖ LACK OF MARKETING EFFORT

❖ NBP UNDER POLITICAL PRESSURE

• FAVORITISM AND NEPOTISM

• LACK OF FINACIAL PRODUCT
• INEFFICIENT COUNTER SERVICES IN THE RUSH HOURS

❖ LACK OF COMPUTERIZED NETWORKLACK OF MODERN EQUIPMENT

• UNEVEN WORK DISTRIBUTION

• ELECTRONIC BANKING
• MICRO FINANCING
• GROWING BUSINESS AND BUSINESS POLICIES

❖ TECHNOLOGICAL ADVANCEMENT

• OPPORTUNITY TO EXPAND FOREIGN OPERATIONS

• CONTINUEING THE PROCESS OF MANAGEMENT TRAINESS

45 | P a g e
National Bank Of Pakistan

THREATS
• EMERGENCE OF NEW COMPETITORS
• POLITICAL PRESSURE BY ELECTED GOVERNMENT
• DOWNSIZING
• CUSTOMERS COMPLAINTS
• GROWING GLOBAL TECHNOLOGICAL ADVANCEMENT
• INCONSISTENCY IN GOVERNMENT POLICIES

3.1. PEST Analysis

A scan of the external macro environment in which the firm operates can be
expressed in the following factors;

◆ Political

◆ Economic

◆ Social

◆ Technological

PEST analysis is used to describe a framework for the analysis of these macro
environment factors.

Political Factors:
• The ongoing shift in power in political arena in the country effects the
performance of the bank has to forward loans to politically powerful persons
which create a sense of insecurity and demoralization in the customer as
well as employees.
• Government is providing opportunities to the Organizations to provide
benefits like old-age benefits, disability benefits, pension, etc. These benefits
are to be provided by every organization under the supervision of Social
Security Ordinance. NBP is also providing its employees the benefits of social
security.
• The NBP has a trade mark and a trade name that gives the NBP an exclusive
right by the government policies to use it and enter into contracts and
dealings through its registered trade name.
• NBP is bound to follow the workers safety regulations as laid down by the
workers safety act.

46 | P a g e
National Bank Of Pakistan

Economic Factors:
• Pakistani government is somehow stable and focusing on the foreign trade.
NBP is taking advantage of this move by government and is trying to increase
their exports. The bank has also played an important role in financing the
country’s growing trade, which has expanded through the years as
diversification took place.
• NBP offers a variety of products and services for different types of customers.
For example, NBP advance salary, NBP karobar, NBP kisan dost etc.
• National Bank of Pakistan keep up its place as Pakistan’s premier bank
determined to put superior values of achievements. It is the main business
colleague for the Government of Pakistan with particular emphasis on
development 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.

Social Factors:
• Terrorism remained the biggest challenge and the negative effects of
international economic meltdown also became evident in the shape of sharp
rise in non-performing loans and operating costs.
• With ‘Flood Relief’ work taking place all over the country, the banks of
Pakistan are expected to contribute immensely in rehabilitation of the
displaced and distressed Pakistanis, along with reconstruction of the basic
infrastructure destroyed in the floods.
• Problems in the energy sector played a key factor in burdening public
finances.
• The salaries of the employees and management are not satisfactory so the
income distribution factor is not satisfactory.

Technological Factors:
• Latest technology is being used by the NBP for services in order to satisfy
customers with fast and active softwares.
• NBP has provided the computers to the staff members to get actual result
and and to save the time.
• Different softwares are being used in NBP’s different Departments.

47 | P a g e
National Bank Of Pakistan

3.2. Contribution of NBP towards Economic Development:

Banks play an important role in the progress and advancement of a nation. The
contribution that a bank pays to the development of an economy’s objectives are
inherent in its core function, accepting deposits from the savers in the economy who
have sufficient resources with them in idle state and advancing those deposits in the
form of loans to investors who are short of sufficient resources. By performing this
function a bank is actually mobilizing the resources in an economy towards their
most efficient utilization.

With its present status of a purely government sector organization NBP can be
undoubtedly thought of contributing a lot towards the economic development of
Pakistan. NBP is performing not only the role of a national bank but it is also acting
as an agent to State Bank of Pakistan in those areas where SBP is not having its
branches. SBP is highly dependent in the performance of the due tasks from NBP
branches especially in those areas where SBP branches are not operational. This
means that NBP can be considered of massive importance in achieving national
economic objectives.

As evident from the countless of schemes, discussed above, NBP is playing an

active role in raising the living standards of the people of Pakistan. In addition to this
NBP has also contributed a lot in the foreign exchange business particularly in the
assistance of promotion of exports to other countries.

48 | P a g e
National Bank Of Pakistan

Chapter 4

4. Marketing

4.1. Achieving Superior Performance

Market Sensing Capabilities

Honeywell Sensing and Control brings engineering expertise and capabilities that no
other company offers. Customers have different needs and different behavior to
fulfill those needs. As you know that development of an effective market sensing
capability is not a simple task. Various information sources must be identified and
processes developed to collect and analyze the information. In the past, the term
“national bank” has been used synonymously with “central bank”, but it is no longer
used in this sense today. Some central banks may have the words “National Bank” in
their name; conversely if a bank is named in this way, it is not automatically
considered a central bank.

49 | P a g e
National Bank Of Pakistan

4.2. Competitive Space

Competition in banking is intense and every bank whether it is Pakistani, and
arrange them in such a way which provides maximum space and convenient. It is
the areas of business in which a firm feels comfortable against competitive
pressures, on the basis of its cost advantage and/or technological leadership. The
first step of competitive analysis is to think of an Industry as an Arena means identify
that who is your customer?? What is your product?? And how you can implement
new technology??

NBP gain its competitive space by finding their existing or potential customers,
(Govt./Business/Retail, Volume, Demographic, Geographical, Benefit C
Psychographic) they knew their products characteristics

4.3. Segmentation
NBP doe segmentation of behavioral bases because customers have different needs
and different behaviors to fulfill those needs. NBP have segmented the market in
different layers and for each layer/segment is a different product with different
features.

National Bank of Pakistan segment in market as geographical demographic the size

of the this market is very wide as compares to other markets. So, in geographical
segment of the NBP is divide their segment as religion and cities atmosphere. The
most of the population of Pakistan is Muslim so it offer both Islamic banking and
commercial banking for religious group it offer Islamic banking free of interest rate
and for secular group it offer the commercial banking In demographic segment it
divide the market into age income education occupation and nationality. And other
is workings as a leader of the bank and performing the clearance department
functions

NBP is offer different product for different segment to target customer in

demographic segment. it is divide the market into age wise for example student 18-
30 and retired or pensioner 40-65 For student National Bank of Pakistan provide
some special deposit account NBP has also segment their market in occupation the
target audience that are related to agriculture provide them different kind of scheme
Kissan Dost etc.

50 | P a g e
National Bank Of Pakistan

4.4. Target Market

They divided their markets are;

• Labor
• Business persons
• Students

They usually target labor class and lived out of country to transfer money of our
families to fulfill their needs. They also targeted students into their colleges and
universities because they save money for study expenses.

NBP main focus is to encourage the people to serve the people. The goal is to reach
a subset of the population who may be interested in your particular product. This
focus group of people is your target market. The target market of NBP is given below
which is based on Objective of the organization which it wants to achieve target
market of nationl bank is:

• Customer having deposit

• Kissan
• Customer who wants to purchase vehicle
• All agriculture related
• Customer desires different loan
• School college and business industries
• Financial invertors
• Consumer having interested to purchase on leasing
• Religious group interested in Islamic Banking
• Group of people needs to get banking services such as utility bills collector

In the term of targeting the market is used when that market is the target at which
you aim of all your marketing efforts. The markets you are trying to reach are people
with common characteristics that set them and apart as a group. There are two
important factor to consider when selecting a target market segment are the:

• Attractiveness of the Products

• Resources and capabilities

51 | P a g e
National Bank Of Pakistan

4.5. Market Positioning

• Positioned as “THE NATION BANK”.
• In all over products they have positioned trust, affordability, convinced and
hassle-free services.
• NBP is having a unique position in the mind of the people because of the
good repute in the market. In marketing, positioning has come to mean the
process by which bank try to create an image or develop the minds of their
target market for its product, brand, or organization. It is the ‘relative
competitive comparison’ their product occupies in a given market as
perceived by the target market.
• National Bank of Pakistan has strong positioning in the mind of their
customer or target market due to its product unique attribute characteristic
feature and superior service. Top management always tries to differentiate
their product and service using different Promotion scheme. To
communicate their audience and create strong identity, smarter

4.6. 4Ps Of Marketing Of

NBP Product
A product is anything that can be offered to a market to satisfy a want or need and a
service is an act or performance that is essentially intangible and does not result in
the ownership of anything. What products or services have to be offered to the target
market depends on the market requirement and also the organization’s profits. The
organization will offer those products and services, which result in maximum profits
and minimum costs.

A bank is an organization rather a financial institution that provides products such as

different types of deposits and services like foddering financing facilities to its
customers.

National Bank offers a diversified line of products and services to its customers. The
unique products and services offered by National Bank are as follow:

• Consumer banking
• Corporate banking
• Commercial banking
• NBP advance salary
• NBP cash card
• NBP cash C gold
• NBP Karobar

52 | P a g e
National Bank Of Pakistan

• NBP Kisan Dost

• NBP online banking
• NBP Saibaan
• SWIFT

Price
It is second important tool of marketing mix because it plays a major role in
determining the customer’s choice. Also it is the only marketing tool that results into
revenue. The banks offer advances to their clients by charging ascertain rate of mark
up or interest. This mark up or interest charged is the price. The customer makes a
comparison between the prices offered by other financial institutions and National
Bank and then selects the most suited offer.

Place
The location of the bank plays a vital role in making its operations profitable. If the
bank is located in some business center then it will be very easy for it to attract
business people as its customers. Therefore NBP has most of its branches at places
where it can reach its targets customer easily.

Here is a list of the banks locations in Pakistan accordance to each province or

territory;

Sindh: Dadu, Sanghar, Hyderabad, Jacobabad, Shikarpur, Karachi, Larkana,

Mirpurkhas, Badin, Nawabshah, Sukkur, Khairpur, Tharparkar.

Punjab: Bahawalpur, D.G. Khan, RYKhan, Faisalabad, Gujranwala, Sialkot, Narowal,

Jhang, Jhelum, Gujrat, Chakwal, Darya Khan, Bhakkar, Lahore, Multan, Murree,
Attock, Gilgit, Rawalpindi, Sahiwal, Sargodha, Sheikhupura.

NWFP: Abbottabad, Mansehra, Bannu, D.I. Khan, Kohat, Mingora, Mardan,

Peshawar.

Baluchistan: Quetta

Azad Kashmir: Muzaffarabad, Mirpur.

53 | P a g e
National Bank Of Pakistan

Promotion
National Bank is actively participating in promotion of its products and services
through advertisement and other promotional schemes.

Initially, the bank focused on the upper class customer's only and offered products
for a limited class of people. But now the strategy has been changed and the bank is
now targeting the middle market also. The products offered are of diverse nature to
cater the needs of maximum number of people.

54 | P a g e
National Bank Of Pakistan

Chapter 5

5. Analysis
5.1. Critical Analysis of Financial Statement (2022,2023,2024)
Financial statement analysis is a process of analyzing the relationship among the
financial statements and their items. It is a valuable tool used by the investors and
creditors, financial analyst and other in their decision making processes related to
stocks, bonds and other financial institutions. The goal is to assess past performance
and current financial position and to make predictions about the future performance of
the company.

55 | P a g e
National Bank Of Pakistan

56 | P a g e
National Bank Of Pakistan

3 years horizontal analysis(balancesheet)

57 | P a g e
National Bank Of Pakistan

3 Years vertical analysis (balance sheet)

58 | P a g e
National Bank Of Pakistan

3 Years Horizontal Analysis (PsL)

59 | P a g e
National Bank Of Pakistan

3 Years Vertical Analysis (PsL)

60 | P a g e
National Bank Of Pakistan

61 | P a g e
National Bank Of Pakistan

5.2. Ratio Analysis

Growth

1. EPS (MRQ) vs Qtr. 1

Title: Earnings Per Share (Most Recent Quarter) vs. Previous Quarter

Formula: ((EPS_{MRQ} – EPS_{Qtr. 1}) / EPS_{Qtr. 1}) \times 100\%

Value: 125.41\%

Interpretation: This indicates a significant increase in earnings per share from the
previous quarter to the most recent quarter, suggesting strong recent performance in
profitability.

2. EPS (TTM) vs TTM 1

Title: Earnings Per Share (Trailing Twelve Months) vs. Previous Trailing Twelve Months

Formula: ((EPS_{TTM} – EPS_{TTM\_Prev}) / EPS_{TTM\_Prev}) \times 100\%

Value: -26.01\%

62 | P a g e
National Bank Of Pakistan

Interpretation: This shows a decrease in earnings per share over the past twelve
months compared to the previous twelve months. Despite recent quarterly growth, the
overall trend in EPS over the last year has been negative.

3. 5 Year EPS Growth

Title: 5-Year Earnings Per Share Growth

Formula: (((EPS_{Current} / EPS_{5\_Years\_Ago})^{(1/5)}) – 1) \times 100\%

(Compound Annual Growth Rate)

Value: 9.4\%

Interpretation: On average, the company’s earnings per share have grown by 9.4\%
annually over the past five years. This indicates a positive long-term trend in profitability,
although it’s slower than the current quarterly growth, and the TTM growth is negative.

4. Sales (MRQ) vs Qtr.

Title: Sales (Most Recent Quarter) vs. Previous Quarter

Formula: ((Sales_{MRQ} – Sales_{Qtr. 1}) / Sales_{Qtr. 1}) \times 100\%

Value: 78.58\%

Interpretation: This shows a very strong increase in sales revenue from the previous
quarter to the most recent quarter, indicating significant recent business expansion.

5. Sales (TTM) vs TTM

Title: Sales (Trailing Twelve Months) vs. Previous Trailing Twelve Months

Formula: ((Sales_{TTM} – Sales_{TTM\_Prev}) / Sales_{TTM\_Prev}) \times 100\%

Value: 35.02\%

Interpretation: The company’s sales revenue over the past twelve months has grown
by 35.02\% compared to the preceding twelve months. This indicates solid growth in the
company’s top line over the past year.

63 | P a g e
National Bank Of Pakistan

6. 5 Year Sales Growth

Title: 5-Year Sales Growth

Formula: (((Sales_{Current} / Sales_{5\_Years\_Ago})^{(1/5)}) – 1) \times 100\%

(Compound Annual Growth Rate)

Value: 19.62\%

Interpretation: On average, the company’s sales revenue has grown by 19.62\%

annually over the past five years. This demonstrates consistent and strong long-term
revenue growth.

7. 5 Year Capital Spending

Title: 5-Year Capital Spending Growth

Formula: Requires specific capital expenditure data.

Value: -

Interpretation: This data point is missing, so no interpretation can be made regarding

the company’s trend in capital expenditures over the past five years.

Efficiency

64 | P a g e
National Bank Of Pakistan

1. Asset Turnover
Title: Asset Turnover Ratio

Formula: Revenue / Average Total Assets

Value: -

Interpretation: This ratio measures how efficiently a company is using its assets to
generate sales. A higher ratio generally indicates better efficiency. The value is missing.

2. Inventory Turnover
Title: Inventory Turnover Ratio

Formula: Cost\_of\_Goods\_Sold / Average\_Inventory

Value: -

Interpretation: This ratio indicates how many times a company has sold and replaced
its inventory during a period. A higher ratio can suggest efficient inventory management.
The value is missing.

3. Revenue/Employee

Title: Revenue Per Employee

Formula: Total\_Revenue / Number\_of\_Employees

Value: 28.25

Interpretation: This metric indicates the average revenue generated by each

employee. A higher value generally suggests greater efficiency and productivity of the
workforce.

4. Net Income/Employee
Title: Net Income Per Employee

Formula: Net\_Income / Number\_of\_Employees

Value: 4

65 | P a g e
National Bank Of Pakistan

Interpretation: This metric represents the average net profit generated by each
employee. A higher value suggests that the company's workforce is highly productive in
contributing to the bottom line.

5. Receivable Turnover
Title: Accounts Receivable Turnover Ratio

Formula: Net\_Credit\_Sales / Average\_Accounts\_Receivable

Value: -

Interpretation: This ratio measures how efficiently a company collects its receivables
(money owed by customers). A higher ratio typically means a company is collecting its
debts more quickly. The value is missing.

Profitability

66 | P a g e
National Bank Of Pakistan

1. Gross Margin (TTM)

Title: Gross Margin (Trailing Twelve Months)

Formula: ((Revenue – Cost\_of\_Goods\_Sold) / Revenue) \times 100\%

Value: -

Interpretation: This ratio indicates the percentage of revenue left after deducting the
cost of goods sold. A higher gross margin means the company retains more money from
each sale to cover operating expenses and profit. The value is missing.

2. Gross Margin (5YA)

Title: 5-Year Average Gross Margin

Formula: Average of Gross Margin over the past 5 years.

Value: 0\%

Interpretation: A 5-year average gross margin of 0\% is highly unusual and suggests
either data anomaly, or that the company operates at a break-even point on its direct
costs over the long term, or it has no direct cost of goods sold (unlikely for most
businesses). This would warrant further investigation.

3. Operating Margin (TTM)

Title: Operating Margin (Trailing Twelve Months)

Formula: (Operating\_Income / Revenue) \times 100\%

Value: 30.7\%

Interpretation: This ratio indicates the percentage of revenue remaining after

deducting operating expenses (but before interest and taxes). A 30.7\% operating
margin is generally considered strong, indicating efficient management of core business
operations.

4. Operating Margin (5YA)

Title: 5-Year Average Operating Margin

Formula: Average of Operating Margin over the past 5 years.

67 | P a g e
National Bank Of Pakistan

Value: 42.45\%

Interpretation: The 5-year average operating margin of 42.45\% is higher than the TTM
operating margin. This suggests that the company’s operating profitability has declined
somewhat in the most recent period compared to its historical average.

5. Pretax Margin (TTM)

Title: Pretax Margin (Trailing Twelve Months)

Formula: (Earnings\_Before\_Tax / Revenue) \times 100\%

Value: 31.06\%

Interpretation: This ratio shows the percentage of revenue remaining after all
expenses except taxes. A 31.06\% pretax margin indicates strong profitability before the
impact of income taxes.

6. Pretax Margin (5YA)

Title: 5-Year Average Pretax Margin

Formula: Average of Pretax Margin over the past 5 years.

Value: 41.2\%

Interpretation: Similar to the operating margin, the 5-year average pretax margin of
41.2\% is higher than the TTM pretax margin, indicating a recent decline in profitability
before taxes compared to its historical average.

7. Net Profit Margin (TTM)

Title: Net Profit Margin (Trailing Twelve Months)

Formula: (Net\_Income / Revenue) \times 100\%

Value: 14.15\%

Interpretation: This is the ultimate profitability ratio, showing the percentage of

revenue that translates into net income for shareholders. A 14.15\% net profit margin is
generally healthy, indicating the company is effective at converting sales into profit.

68 | P a g e
National Bank Of Pakistan

8. Net Profit Margin (5YA)

Title: 5-Year Average Net Profit Margin

Formula: Average of Net Profit Margin over the past 5 years.

Value: 21.98\%

Interpretation: The 5-year average net profit margin of 21.98\% is higher than the TTM
net profit margin, suggesting that the company’s overall profitability (after all expenses,
including taxes) has decreased in the most recent period compared to its long-term
average.

per share data

1. Revenue/Share
Title: Revenue Per Share (Trailing Twelve Months)

69 | P a g e
National Bank Of Pakistan

Formula: Total\_Revenue / Number\_of\_Outstanding\_Shares

Value: 126.77

Interpretation: This metric indicates the amount of revenue generated for each
outstanding share of the company’s stock over the past twelve months.

2. Basic EPS
Title: Basic Earnings Per Share (Annual)

Formula: (Net\_Income – Preferred\_Dividends) /

Weighted\_Average\_Basic\_Shares\_Outstanding

Value: 12.21

Interpretation: This represents the portion of a company’s profit allocated to each

individual share of common stock. It’s a key indicator of a company’s profitability on a
per-share basis.

3. Diluted EPS
Title: Diluted Earnings Per Share (Annual)

Formula: (Net\_Income – Preferred\_Dividends) /

(Weighted\_Average\_Basic\_Shares\_Outstanding + Dilutive\_Securities)

Value: 12.21

Interpretation: This is similar to basic EPS but accounts for all dilutive securities (like
options, warrants, convertible bonds) that could be converted into common shares,
potentially increasing the number of shares outstanding and reducing EPS. When basic
and diluted EPS are the same, it implies no dilutive securities exist.

4. Book Value/Share
Title: Book Value Per Share (Most Recent Quarter)

Formula: (Total\_Shareholder\_Equity – Preferred\_Equity) /

Number\_of\_Common\_Shares\_Outstanding

Value: 210.31

70 | P a g e
National Bank Of Pakistan

Interpretation: This represents the per-share value of a company based on its

accounting records (assets minus liabilities). It gives an idea of the minimum value of a
company’s equity.

5. Tangible Book Value

Title: Tangible Book Value Per Share (Most Recent Quarter)

Formula: (Shareholder\_Equity – Intangible\_Assets) /

Number\_of\_Outstanding\_Shares

Value: 209

Interpretation: This is a more conservative measure than book value per share as it
excludes intangible assets (like patents, goodwill). The fact that it’s very close to the
Book Value/Share (210.31 vs 209) suggests the company has very few intangible assets.

6. Cash/Share
Title: Cash Per Share (Most Recent Quarter)

* Formula: Total\_Cash\_and\_Cash\_Equivalents / Number\_of\_Outstanding\_Shares

Value: 70.17

Interpretation: This indicates the amount of cash and cash equivalents a company
has for each outstanding share. A higher cash per share can suggest financial flexibility.

7. Cash Flow/Share
Title: Cash Flow Per Share (Trailing Twelve Months)

Formula: Operating\_Cash\_Flow / Number\_of\_Outstanding\_Shares

Value: -82.17

Interpretation: This represents the amount of cash generated by the company’s

operations for each share. A negative cash flow per share suggests that the company’s
operations are consuming cash rather than generating it, which can be a concern,
especially in the long term.

71 | P a g e
National Bank Of Pakistan

Management Effectiveness

1. Return on Equity (TTM)

Title: Return on Equity (Trailing Twelve Months)

Formula: (Net\_Income / Average\_Shareholder\_Equity) \times 100\%

Value: 9.15\%

Interpretation: This ratio measures how much profit a company generates for each
dollar of shareholder equity. A 9.15\% ROE indicates that management is generating a
reasonable return for its shareholders.

2. Return on Equity (5YA)

Title: 5-Year Average Return on Equity

Formula: Average of Return on Equity over the past 5 years.

Value: 10.69\%

72 | P a g e
National Bank Of Pakistan

Interpretation: The 5-year average ROE of 10.69\% is higher than the TTM ROE,
suggesting that the company's ability to generate returns for shareholders has slightly
declined recently compared to its historical performance.

3. Return on Assets (TTM)

Title: Return on Assets (Trailing Twelve Months)

Formula: (Net\_Income / Average\_Total\_Assets) \times 100\%

Value: 0.59\%

Interpretation: This ratio indicates how efficiently a company is using its assets to
generate earnings. A 0.59\% ROA is quite low, suggesting that the company is not
generating much profit from its asset base. This needs to be considered in conjunction
with the business model and industry.

4. Return on Assets (5YA)

Title: 5-Year Average Return on Assets

Formula: Average of Return on Assets over the past 5 years.

Value: 0.76\%

Interpretation: The 5-year average ROA of 0.76\% is also low and slightly higher than
the TTM ROA, indicating that the company's asset utilization for generating profit has
slightly worsened recently.

5. Return on Investment (TTM)

Title: Return on Investment (Trailing Twelve Months)

Formula: ((Gain\_from\_Investment - Cost\_of\_Investment) / Cost\_of\_Investment)

\times 100\% (General formula; specific formula depends on definition, often operating
income / invested capital)

Value: -

Interpretation: This measures the profitability of an investment. The value is missing.

73 | P a g e
National Bank Of Pakistan

6. Return on Investment (5YA)

Title: 5-Year Average Return on Investment

Formula: Average of Return on Investment over the past 5 years.

Value: 0\%

Interpretation: A 5-year average ROI of 0\% is highly unusual and suggests that, on
average, the company has not generated any return from its investments over the long
term, or there might be specific accounting practices or data issues. This requires
further investigation.

Valuation Ratios

1. P/E Ratio

Title: Price-to-Earnings Ratio (Trailing Twelve Months)

Formula: Share\_Price / Earnings\_Per\_Share(TTM)

Value: 4.88

Interpretation: This ratio indicates how much investors are willing to pay for each
dollar of a company’s earnings. A P/E of 4.88 is relatively low, which could suggest that

74 | P a g e
National Bank Of Pakistan

the stock is undervalued, or that investors anticipate low future earnings growth, or that
the company is in a cyclical industry.

2. Price to Sales
Title: Price-to-Sales Ratio (Trailing Twelve Months)

Formula: Share\_Price / Sales\_Per\_Share(TTM)

Value: 0.69

Interpretation: This ratio compares a company’s stock price to its revenue per share. A
0.69 Price to Sales ratio is quite low, potentially indicating that the stock is undervalued
relative to its sales.

3. Price to Cash Flow

Title: Price-to-Cash Flow Ratio (Most Recent Quarter)

Formula: Share\_Price / Cash\_Flow\_Per\_Share(MRQ)

Value: -1.07

Calculation:(Example using provided Cash Flow/Share): If the Cash Flow/Share (TTM)

is -82.17, then a negative Price to Cash Flow of -1.07 indicates that the cash flow is
negative. This means the company is burning cash from operations, which is generally a
red flag.

Interpretation: A negative Price to Cash Flow indicates that the company has negative
cash flow, meaning it’s consuming more cash than it’s generating from its operations.
This is a significant concern for investors.

4. Price to Free Cash F

Title: Price to Free Cash Flow (Trailing Twelve Months)

Formula: Share\_Price / Free\_Cash\_Flow\_Per\_Share(TTM)

Value: -

Interpretation: This ratio compares the stock price to the amount of free cash flow
generated per share. Free cash flow is crucial as it represents the cash available to a
company to repay debt, pay dividends, or repurchase shares. The value is missing.

75 | P a g e
National Bank Of Pakistan

5. Price to Book
Title: Price-to-Book Ratio (Most Recent Quarter)

Formula: Share\_Price / Book\_Value\_Per\_Share(MRQ)

Value: 0.42

Calculation:(Example using provided Book Value/Share): If Book Value/Share is 210.31

and Price to Book is 0.42, then Share\_Price = 0.42 \times 210.31 = 88.33.

Interpretation: A Price to Book ratio of 0.42 means the company’s market value is
significantly less than its book value. This could suggest the stock is undervalued, or
that investors believe the book value is overstated or the assets are not generating
sufficient returns.

6. Price to Tangible Bo
Title: Price to Tangible Book Value (Most Recent Quarter)

Formula: Share\_Price / Tangible\_Book\_Value\_Per\_Share(MRQ)

Value: 0.42

Calculation: (Example using provided Tangible Book Value): If Tangible Book Value is
209 and Price to Tangible Book is 0.42, then Share\_Price = 0.42 \times 209 = 87.78.

Interpretation: Similar to Price to Book, a ratio of 0.42 means the market values the
company significantly below its tangible assets. The fact that it’s the same as Price to
Book confirms the minimal presence of intangible assets.

Financial Strength

76 | P a g e
National Bank Of Pakistan

1. Quick Ratio
Title: Quick Ratio (Acid-Test Ratio) (Most Recent Quarter)

Formula: (Current\_Assets - Inventory) / Current\_Liabilities

Value: -

Interpretation: This is a liquidity ratio that measures a company's ability to meet its
short-term obligations with its most liquid assets. The value is missing.

2. Current Ratio
Title: Current Ratio (Most Recent Quarter)

Formula: Current\_Assets / Current\_Liabilities

Value: -

Interpretation: This liquidity ratio assesses a company's ability to pay off its short-term
liabilities with its short-term assets. The value is missing.

3. LT Debt to Equity
Title: Long-Term Debt to Equity (Most Recent Quarter)

Formula: (Long\_Term\_Debt / Total\_Shareholder\_Equity) \times 100\%

Value: 7.62\%

Interpretation: This ratio indicates the proportion of a company's long-term debt

relative to its shareholder equity. A 7.62\% ratio suggests that the company relies very
little on long-term debt for financing, indicating strong financial leverage and low
financial risk.

4. Total Debt to Equity

Title: Total Debt to Equity (Most Recent Quarter)

Formula: (Total\_Debt / Total\_Shareholder\_Equity) \times 100\%

Value: -

Interpretation: This ratio measures the total amount of debt (short-term and long-
term) a company uses to finance its assets relative to the value of shareholders' equity.
The value is missing.

77 | P a g e
National Bank Of Pakistan

Dividend

1. Dividend Yield
Title: Dividend Yield (Annual)

Formula: (Annual\_Dividends\_Per\_Share / Share\_Price) \times 100\%

Value: 9.13\%

Interpretation: This ratio shows how much a company pays out in dividends each year
relative to its stock price. A 9.13\% dividend yield is quite high, which can be attractive
to income-focused investors, but also warrants investigation to ensure sustainability.

2. Dividend Yield 5 Year

Title: 5-Year Average Dividend Yield

Formula: Average of Dividend Yield over the past 5 years.

78 | P a g e
National Bank Of Pakistan

Value: 5.14\%

Interpretation: The 5-year average dividend yield of 5.14\% is lower than the current
annual dividend yield, suggesting that the current dividend yield is higher than its
historical average. This could be due to recent dividend increases or a decline in share
price.

3. Dividend Growth Ra
Title: Dividend Growth Rate (Annual)

Formula: Requires historical dividend data over multiple periods.

Value: -

Interpretation: This measures the rate at which a company's dividend payments

have increased over time. A positive growth rate indicates that the company is
consistently increasing its dividend payouts. The value is missing.

4. Payout Ratio
Title: Payout Ratio (Trailing Twelve Months)

Formula: (Dividends\_Paid / Net\_Income) \times 100\%

Value: 0\%

Interpretation: This ratio indicates the percentage of a company's net income that is
paid out to shareholders as dividends. A 0\% payout ratio suggests that the company is
not currently paying dividends, or that its net income is negative and it's still managing
to pay dividends from other sources (unlikely with a 0\% ratio). Given the high dividend
yield, this 0\% payout ratio is contradictory and likely a data error or misinterpretation
without further context. If it implies zero dividends for TTM, it contradicts the dividend
yield.

79 | P a g e
National Bank Of Pakistan

Chapter 6

6. Work done by me:

6.1. Introduction of the branch:

I did my internship work in national bank of Pakistan Atta Building Branch.I have not
any practical experience of work regarding the banking sector. When I started the
bank, I was very excited to work in that branch, the manager of that branch is the
very kind hearted and cooperative person, he told us about all the departments of
the bank. He gave me the friendly environment and calmly welcome to me. I was
very happy because of their behavior and effectiveness.

The national bank of Pakistan Atta Building Branch located in Gujranwala district.
The environment of learning and operational of that branch is very helpful and
effectively valuable for me. The environment of that branch was very kind to me.I
was very much specified to work in national bank of Pakistan in my 6 weeks tenure.

The national bank of Pakistan provides the best services to their customers and
employees also have the best and friendly relations with each other. This branch
provides the basic and best equipment’s to their employees and also provides the
best resources to facilitate the customers and also their employees to get the higher
profit and compete with other branches as well. When you entered in branch you
can feel the difference of this branch with any other branch at the Gujranwala sector.

80 | P a g e
National Bank Of Pakistan

Branch profile
Branch name: Atta Building Branch

Address: Bazar Kharadan circular road

District: Gujranwala

Province: Punjab

Status: Online

Branch code: 0767

Phone: 0559330571

Website: www.nbp.com.pk

81 | P a g e
National Bank Of Pakistan

6.2. MANAGEMENT OF ORGANIZATION

Management is a distinct process consisting of activities of planning, organizing,
actuatingand controlling performed to determine and accomplish stated objectives
with the use ofhuman being and other resources.

MANAGEMENT SYSTEM
The management has two types.

• Centralized
Management tends to concentrate decision making at the top of the organization

• Decentralized
Disperses decision making and authority throughout and further down the
organizational hierarchy.NBP have a centralized type of management because all the
decisions are taken by the top management.

CORPORATE INFORMATION

Board of Director

Syed Ali Raza Qamar Hussain

82 | P a g e
National Bank Of Pakistan

Nazrat Bashir

Haniya Shahid Naseem DR.Tariq Karmani

Audit committee

83 | P a g e
National Bank Of Pakistan

Auditors

6.3. Strategies

COMPETITIVE STRATEGY
Banking industry in Pakistan is progressing in leaps and bounds and with this drastic
increase in number is raising the bar of competition amongst the banking sector. Last
year the better half of the foreign direct investment was in the banking sector. To stay in
this incredible amount of pressure of competition and delivering the good son the
deadlines to obtain customer satisfaction and loyalty is the need of the hour and
National bank has always proved itself in distant times by providing the cheapest
interest rates on loans given to the corporate world, employees of Government
institutions in terms of Advance Salaries and to farmers made the bank to stand tall in
the competition and contributed a lot to the competitive strategy of the bank. They are
mainly using the Market Penetration Strategy to attract customers.

MARKETING STRATEGY
National Bank strongly believes in “winning the customer by winning his heart” through
complete satisfaction of his/her needs. National bank’s marketing strategies are more
towards making their existing customers loyal because they believe that it is their
customers who provide them with new customers. The Bank uses KYC (Know your
customer forms) to have complete association with their new customers.

84 | P a g e
National Bank Of Pakistan

DEPOSITS
Target Market
Personal Bankers target markets include businessmen, salaried individuals,
housewives, retired individuals and anyone who has the potential of providing legal
deposits to the bank.

Promotional Strategies
Promotional marketing has various types; from what I can recall there is direct
marketing and indirect marketing. Direct marketing is a discipline within marketing that
involves the planned recording, analysis and tracking of individual customers 'response
and transactions for the purpose of developing and prolonging mutually profitable
customer relationship. Direct marketing is a form of marketing that attempts to send its
messages directly to consumers using "addressable" media, such as mail and
(increasingly email), telephone and personal meeting with customers. Therefore, direct
marketing differs from regular advertising in that it does not place its messages in a third
party medium, or in the public market, such as billboard to a radio commercial
would.Instead, the marketing of the service or commodity is addressed directly to the
target customer. On the other hand indirect marketing includes such types of
advertising tools like billboards, TV commercials where no immediate response can be
seen neither can be measured. No matter what the promotional strategy, as Mr. Kaiser,
Team Manager of Credit Cards Department in Consumer Banking said" A successful
product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market "National Banks promotional strategies
consist of Public Relations National Bank strongly aims to develop positive relationship
with public. The bank has promoted healthy sports activities as NBP has built a state of
art sports complex at Karachi.

Direct Mail
There has been a massive growth in direct mail campaigns over the last few years.
National Bank has complete databases, which contain names and addresses of
potential customers. Direct mail allows NBP to use their resources more effectively by
allowing them to send publicity material to a named person within their target segment.
By personalizing advertising, response rates increase thus increasing the chance of
improving business.

85 | P a g e
National Bank Of Pakistan

Internet Promotion
Owning a website is a now a crucial ingredient to the marketing mix strategy of any
organization. National Bank's customers can now obtain instant information on
products or services to aid them in their crucial decision. Further NBP also facilitates its
customers through I-Banking. Customer can register on the web site ad can enjoy a host
of services.

Personal Selling (Push Strategy)

The foremost Promotional Strategy of NBP is Personal Selling i.e. Selling a products one
to One.

Direct Marketing
Personal Bankers at NBP, whose primary job is to bring more and more deposits to the
bank,Make use of Direct Marketing techniques. First of all these identify their sources
from the reference groups and track down their likely to be customers. According to a
Mr.Adeel butt at NBP, “It is all a matter of keeping your eyes and ears open. While
meeting with a Potential customer, it is most likely that you can get a new reference for a
new customer” Once they get a reference from their existing customer or relative or
colleague, they try to get as much information as possible about their potential
customer. Then they give a call to the customer and try to convince him/her over the
phone. Customers with greater potential are asked for appointments for a face-to-face
meeting. Customers who provide the bank with heavy deposits are given special
treatment.With every new account opened, National Bank provides a free cheque book
and a free debit/shopping card. Other than that, if a customer maintains an average
balance of one hundred thousand he/she has the facility of making two DDs free of any
charge.

Augmented Personalized Services

Personal bankers are dedicated to provide with the best possible attention, advice and
services to their customers aside from regular.

86 | P a g e
National Bank Of Pakistan

CASH CARD
Push Promotional Strategy
NBP makes use of push promotional strategy to promote the cash cards business.
Through this promotional strategy, Bank makes use of its sales force and trade
promotion activities to create consumer demand for cash cards.

Positioning
The Cash Card meets the everyday usage needs of financially responsible consumers
who desire the flexibility offered by the cash cards. ItProvides the high level of quality
customer service.

Target Market
The Cash Cards are targeted towards customers who are financially responsible,Middle
and upper income consumers who seek greater financial flexibility, a mix of local and
global services and support and demand a high level of quality and service

Approved Cities
Karachi Lahore Islamabad Others (All Cities where NBP Branches exist along with
Collection and Verification infrastructure)

DISTRINCTIVE CAPABILITY
National Bank of Pakistan is at the forefront of international banking in Pakistan. The
bank's belief in its client's capabilities, and its commitment to the country.

• Creating a distinctive brand identity by providing the highest standards of

services.
• Adopting the best international management practices.
• To create more and more stakeholders value.
• Increase our responsibility as a good corporate.

87 | P a g e
National Bank Of Pakistan

Classifying Capabilities
NBP analyze and surveyed what service has high needed which were introduced by our
competitors. National bank of Pakistan used need analysis techniques.

Creating Value For Customer

Customer Value
At NBP highly value our customers and in order to better assist our customers nbp have
set up a dedicated complains and inquiry cell. In case of any questions or inquiries
pertaining to home remittances and any department, we can be reached through
mentioned The National Bank of Pakistan (NBP) was granted a license to expand its
operations in Saudi Arabia by the Saudi Arabian Monetary Agency (SAMA). NBP
dedicated and committed staffs to cater their valued customers. NBP is constantly
working to boost its services and expand its correspondent network all over the world to
achieve greater customer.

BUSINESS PROCESS ANALYSIS

After working in that environment of National Bank of Pakistan found following points in
analyzing Business Process of the Organization.Well-defined tasks and duties.The tasks
and duties are defined in such a way that it becomes very easier for the employees to
perform their assigned tasks. Due to the implementation of modern techniques the
efficiency and accuracy of the work force has been greatly increased.

Proper supervision
There is a proper supervision system to check and evaluate the performance of each
employee. It is the duty of Operations Manager to make sure that every employee is
giving theDesired performance.

Caring environment for the customer

The environment of the bank is caring for the customers and every customer is deal with
proper care and attention. All the employees have very professional attitude and know
the behavior of the staff with the customers is very cooperative and supportive and
every worth of the customer for the business.

88 | P a g e
National Bank Of Pakistan

Cooperative and Supportive Staff

Employee is ready to facilitate the customer on his best in order to increase the
customers’ Satisfaction level.

Lack of customer relationship desk

Lt was observed that there was no customer relationship officer in the branch to guide
the customer to solve their problems and to tell them that what should they do and
where should they go for the solution of their problems. As a result the customers keep
on disturbing all the employees in order to get their problem solved. This results in the
decrease in the employees’ concentration on their jobs.

Difficulty in Handling of illiterate customers

As the branch is located in such an area where main business is of spare parts and steel
manufacturing, the majority of the customers is illiterate. Thus it is not very easy for the
Employees to handle these customers.

Increased workload
Due to the new regulations of the state bank to deduct 0.1% tax on every check 656
amounting to more than Rs. 25000, the customers started issuing too many checks to
Void this tax. As a result the overall work load on employees has been significantly
increased.

Employee’s motivation level

Lt was observed that at present the motivation level of the employees is not very much
high because of the currently announced salary increments, which is not up to the
employees’ expectation level and because of some other reasons such as,increased
workload etc.

89 | P a g e
National Bank Of Pakistan

6.4. Departmentalization of NBP Atta building branch

General Banking Departments consist of following Sections.

1. Account Opening Section

2. Deposit Section
3. Remittance Section
4. Clearing Section
5. Government/Pension Section
6. Advance Section

Account Opening Section

This section performs the following functions:

1. Opening of Accounts
2. Issuance of Cheque Books
3. Closing of Accounts
• Account closing by Customer.
• Account closing by Bank

90 | P a g e
National Bank Of Pakistan

Deposit Section
Following types of accounts are open in NBP Circular Road Branch

Remittance Section
Remittance means a sum of money sent in payment for something. This Section
deals with either the transfer of money from one bank to other bank or from one
branch to another branch for their customers.

There are Four main modes of Remittance used in NBP:

• Demand Draft
• Mail Transfer/Online Funds Transfer
• Telegraphic Transfer
• Traveler Cheques

Clearing Section
The major function of Clearing Section is to receive the cheques, which are drawn
on some other bank.The customer can get the money in his account at NBP, from the
cheques drawn on another bank. The bank accepts these cheques and collects the
amount from that bank on which cheque is drawn through the Clearing House. Bank
charges some commission for this function. National Institutional Facilitation
Technology (NIFT) Pvt. Limited is performing the function of clearing and charges
commission against it.

91 | P a g e
National Bank Of Pakistan

Advance Section
Advance means “To give loan to the parties’ amount may be small or big”. Advances
Section is one of the most sensitive and important departments of any bank.

• To finance the export and import of the country.

• To finance the industries, trade and agriculture.
• To give loan to student for higher education.
• To give loan to the business men.
• To give loan for house building.

Govt/Pension Section
Circular Road Branch carries the responsibility of paying pension to the
pensioners.For this purpose pension books are issued to the pensioners. In this
book the pensioner has to come personally. Incase he is not able to come line
certificate has to be sent.B-143 register is maintained for the record of
pensioners.Pension can be refused to a person in following:

• The person himself and his life certificate both are not present.
• Signature in the payment voucher is not made.
• He/She has not got pension book.
• Picture is not preset on the pension book.

Dates of STARTING AND ENDING OF WORKING IN NATIONAL BANK

I started my internship on 11 june 2024 and the ending date was 28 July 2024. These
six weeks are the best experience of my life.

92 | P a g e
National Bank Of Pakistan

6.4. The different departments of national bank where I worked:

I already described that I worked in different departments for gaining the practical
knowledge about the different activities of the bank.

Here I informed that I worked in 3 basic departments, firstly:

• Customer service department:

The customer services department in any kind of the bank branch provides the best
and basic resources to their customers and eliminates their problems by creating
the best learning environment. The bank is the large organization that receives the
deposits and takes the advances for gaining the profits. But the department of the
customer service provide the customers that how to fill the vouchers in terms of
dates, proper codes and also the proper signatures of the customers. This kind of
department also provides the cheque books and the procedure regarding to that
cheques that how to fill the cheques. The proper signatures of the people must be
written in the cheque otherwise the cheque may be rejected. So, it is the function of
the customer service to provide the best suitable rules and regulations regarding the
vouchers, slips and the cheques as well to their valuable customers.

93 | P a g e
National Bank Of Pakistan

This department also deals with providing the services of the pensions to the
pensioners. The department of customer service takes the great role to provide the
customers the best solutions about their problems and make the customersatisfied
in terms and nature of their different conditions which the people want to solve out.

In kind of any quarrel situation in bank, the different departments of banks and their
employees take the positive step ahead. But this department has the great
importance to solve the kind of problems because basically, it specially deals with
such kind of people.

• Advances department:
The department of advances in all over the banks of world has the same importance.
Its basic purpose is to provide the advances to different customers who wants to get
the advance but the rate of interest must be apply regarding the amount of loans and
advances. As everybody knows, that bank only works for profits and the advances
department has the most significant role in any kind of banking sector.

The mostly profits are earned by this department of advances through the interests
which are indirectly received by the people who take the advances. The control of all
the advances is mainly the responsibility of the credit management. The bank takes
the deposits from different kind of people who have the excess amounts and provide
the advances and funds to the needy people who have not any other kind of or way
of funding but at the high rate of interest.

This department also provides the other different advances activities like, it also
take the advance in against of the gold items. The different rules and regulations
apply in the place of gold advances.

If any kind of the individual or the organization, who needs loan or advance from the
national bank of Pakistan has must fulfilled the following necessary information, he
must fill the specific form which was necessary for the banker or the person who
gave the loan.This basic information’s are as under:

• The borrower name and address

• The individual financial condition that in case of the due date of loan,May be
able to provide the loan back to the bank or not.
• There must be the mention of the security and analyze its market value.
• The borrower also signs the specific type of form named as promissory note
in which he signs that at the due date he returns the entire amount along with
their interest.

94 | P a g e
National Bank Of Pakistan

The different principals and rules of Advances:

There are the basic five principles which the bank must be observed while gave the
advances and the loans.

1. Safety loan
2. Security liquidity
3. The dispersal security by the bank in case of need

4. The bank remuneration as interest

5. The loan along with the suitable security

The different forms of advances:

NBP make and provides the advances or loans in different forms to its valuable and
specific customers as the condition of the borrower needs.Advances can be the
following types:

• Cash finance without any security,

• Overdraft facility
• Demand finance

Opening the new account:

The opening of the new account is basically the contract between the customers, the
NBP and the banker who opened the account. The account can be opened
electronically by the specific system of the bank. The different accounts can be opened
by the demand of the customers and after this the bank allot the account numbers to
the customers so than they will be able to deposit the amounts.

The forms for the new accounts generate electronically and then the forms filled by the
customers regarding to the requirements of the customers.Account opening procedure:

• Account title
• Information of the account holder
• Account number
• Signature of the specimen
• Next of kin information
• Deduction of the zakat instructions
• Account nature
• Thanks letter

95 | P a g e
National Bank Of Pakistan

Account types:
These are the Following types of accounts which are opened in NBP:

A) Sharing the profit and loss account:

Profitand loss sharing account is mostly for the small traders or the salaried persons
or the practical or professionals who have not the much transactions and amount to
deposit in the bank. But they have the ability to deposit it in any time and in any form.
The bank takes the deposits from the small traders and the professionals and the
salaried persons and then gave the advances to the large organizations for getting
the higher profit. The people share the profits but in case of the loss the customers
can also share it for their investment.

B) Current account:
• Current account are opened for mostly the business sector, because they have
the large business connections with other businesses and they need money at
any time so the bank take the deposits and the cheques for such kind of
business class because it create the benefit for the bank and create the
entertainment also. So the banks do not invest the whole amount because the
current account holders can demand for the amount at any time. Bank receives
the higher rate of interest for current account holders because bank cannot
invest their deposits in any other beneficial projects.

FEATURES OF CURRENT ACCOUNT:

1. Current account must be opened by the amount of rupees 100.

2. Banks create the no limit for the deposits.

3. The advances and the deposits can be withdrawing with the permission of the current
account holders.

4. The foreign currency and the local currency can be deposited in the accounts of the
current account holders.

5. The following people or institutions can deposit the amounts in current account:

• Individuals
• Sole proprietor
• Partnership organization
• Clubs societies and other institutions

96 | P a g e
National Bank Of Pakistan

6. The bank can play an important role as an agent because he receives the deposits,
prepare the cheques and then make the payments.

7. Any kind of the profit is not paid to the current account holder.

8. Account holder also provides the information of next of kin that in case of any kind of
problem I may not be able to response to the bank, than the next of kin will be
responsible for the current account holder.

9. Bank can withdraw the amount from the current account holder at any time.

10. Current account holder must maintain the maximum amount in his account.

11. Bank also provides the ATM cards to their specific customers to made the cash
available for 24 hours.

12. The statements of the accounts provided to the depositors of the account holders
whenever they required

Government and pension maintenance department:

Government and pension maintenance department of the NBP has the basic function
to calculate the amounts of pensions prepare the scrolls for the safety and made the
ledger entries. Miss Iqra Tabbasum was the head of this department. Scrolls are
basically prepared to check out the whole amount which was given.

This department also made the demand draft and other activities of the governments
like the deal with 20% increments by the government after the date of the 30 july.

Overview of Internship Experience

During my six-week internship at the National Bank, I had the opportunity to work in
several key departments, including Customer Service, Advanced Banking, Account
Opening, and Government and Pension Maintenance. This experience allowed me to
gain a comprehensive understanding of banking operations and develop essential skills
in customer service, financial processes, and compliance.

Week 1: Customer Service Department

In the first week, I was introduced to the Customer Service Department. My primary
responsibilities included assisting customers with their inquiries, handling basic
transactions, and shadowing experienced staff members. This initial exposure helped
me understand the importance of empathy and effective communication in customer

97 | P a g e
National Bank Of Pakistan

service. I learned how to manage difficult customer interactions and the significance of
maintaining a positive attitude, even in challenging situations.

Week 2: Customer Service Department

Continuing in the Customer Service Department, I focused on processing customer

complaints and providing information about various bank services. I also maintained
customer records and ensured that all interactions were documented accurately. This
week enhanced my problem-solving skills as I balanced multiple customer requests
simultaneously. I realized that effective communication is crucial for resolving issues
and ensuring customer satisfaction.

Week 3: Advanced Banking Department

In the third week, I transitioned to the Advanced Banking Department, where I assisted
with complex transactions and supported the loan processing team. I learned about
different financial products and services offered by the bank, which deepened my
analytical skills. Navigating the complex financial regulations posed a challenge, but it
emphasized the importance of accuracy in every transaction. I gained valuable insights
into the intricacies of banking operations.

Week 4: Account Opening Department

During my fourth week, I worked in the Account Opening Department. My tasks involved
assisting customers in opening new accounts, explaining account features, and
verifying customer documentation. This role required a thorough understanding of
banking procedures and compliance regulations. I developed my customer engagement
skills and learned the importance of detailed documentation in the account setup
process to ensure a smooth onboarding experience for new clients.

Week 5: Government and Pension Maintenance Department

In the fifth week, I joined the Government and Pension Maintenance Department. My
responsibilities included managing pension account inquiries, assisting with
government account processes, and supporting data entry tasks. This position required
strong organizational skills and an understanding of government policies. I faced
challenges in handling sensitive information, which taught me the importance of
confidentiality and data protection in banking.

98 | P a g e
National Bank Of Pakistan

Week 6: Integration of Experience

In my final week, I integrated my experiences from all departments. I finalized reports on

customer feedback, presented my findings to supervisors, and reflected on my overall
internship experience. This week allowed me to enhance my presentation skills and
engage in self-reflection. Summarizing my diverse experiences helped me identify my
strengths and areas for improvement.

Different tasks assigned to me as my internship:

I got the very practical experience during my internship program. I visit the various
departments and get the knowledge which will be helpful in my future career:

• Fill the deposit slips and vouchers

• Fill the ledgers of governments and make the general entries
• Calculate the amount of pensions
• Prepare the scrolls for the bills and government
• Transfer the information to the ECIB for the security
• Updated the loan information
• Make the Online payments
• Delete all the data of the borrowers from the system whose accounts has been
closed.
• Account opening

6.5. Summary of learning:

Skills and qualifications that I have gained in my internship:

During my internship in national bank I gained very specific type of skills and knowledge.
In my university career I have not any kind of experience of job environment. I learned
that how to work in the pressure in an effective way. I also know the value of time.
During my six weeks tenure the I have got the practical experience and it also increased
my self confidence level.

I learned that how to survive in such kind of environment and I meet with different types
of customers who have the different demands on various tasks. To meeting with those
customers I also enhance my communication skills and it will help me in future for
boost up my personality.

99 | P a g e
National Bank Of Pakistan

Doing Internship in national bank also taught me that working on the daily basis
eliminate the chances of errors in further future plans.it also help me to apply my
academic knowledge in practical environment.

My working experience also help me in my student career because the mostly tasks
which I done in NBP will be able to me to apply these activities in my university so I gain
the best possible results which obviously help me in promotion of my self-confidence
and also working career in future.In my starting days of the internship I feel hesitation to
interact with the people but after some time when I spent more days I gained the
friendly environment with the department heads and also with the manager of that
branch.

My Responsibilities during My Internship:

I performed the various responsibilities and activities in my internship:

• Prepare the slips and vouchers along with their names exact amount proper date
and the account numbers for the different purposes.
• Perform the duties in the government department and made the calculations of
the pension with the special formula.
• In advances department I mostly spent my time in making ledger entries and
also transfer the information to the ECIB for the record of information of the
borrowers.
• Perform the duties that how to open the new account with the help of the officer
• Updated the statement of the loan with the amount of loan and date of the
maturity.
• Perform the duties that how to fill the cheques and in case of reissuance of
cheques or loss than what was the procedure.

Effect of Internship in my future career plans:

Now I really feel that during my internship in NBP, I got the basic knowledge about the
banking sector. Now I can get the job easily in any branch because I have the some
experience of work. The University of Gujrat gave me the opportunity to work out in any
organization to enhance my skills and abilities in my vacations.So it would be very
helpful in my future career because I work practically in the bank and I know the
environment of the bank, I personally very inspired by practically work in national bank.
It is my dream that in my future I got the job in NBP and show my working activities in
that organization.

100 | P a g e
National Bank Of Pakistan

When I observed the different departments I learned that this task is very easy to
perform but when I personally do the work I taught that it is the very difficult task But at
the end it will just say that I know the practical work in the banking sector or in any other
areas is not the very easy but practically it increased my plans for future to wore more
and in the very difficult condition. That is now basically a challenge for me and
opportunity to work in future in the best way.

General Observation Of the national bank of Pakistan

Atta Building branch:
Due to the increased number of private banks the people has a lot of alternative options
to save their cash and other gold or property files. Now the competition among the
banks is very high. The people have the different choices to take the services from their
concerned bank. So it is the responsibility of the bank to provide the best services to the
customers in an efficient and effective way.The hiring process of most of the banks is
not very appreciable. The persons of most of the banks even did not know about the use
of technological resources.

They have not any kind of training and work in banks just on the reference basis.

The banks who hire the people which has not any kind of confidence and lack of the
verbal skills than it will be the loss for the bank because due to the competition the
other banks take the advantage and motivate the other customers through their best
services and gain the competitive advantage.

The attitude of the private banks towards their employees and customer is out of class.
But the people and the employees of the government institutions misbehave with the
customers. They mostly waste their time and can’t perform their duties well. The mostly
customers of the government organizations are not happy because of the rude
behaviors of the staff.

6.6. National Bank of Pakistan Awards and Achievements:

• “Best Foreign Exchange Bank 2008” awarded by world’s leading financial journal
“Global Finance”.
• Best Return on Capital for 2006 amongst all Banks in Asia. “Banker Magazine” in
July 2007.
• World’s leading financial journal, “Global Finance” has named NBP as the Best
Emerging Market Bank from Pakistan for the year 2006.
• “Best Foreign Exchange Bank – Pakistan” award for the year 2006 by world’s
leading financial journal “Global Finance”.

101 | P a g e
National Bank Of Pakistan

• Due to consistent improvement in NBP’s Core Profitability, Asset Quality and

Economic Capitalization in recent years, Moody’s Investors Service upgraded the
Financial Strength Rating (FSR) from E+ to D-, in November 2005.
• “Best Foreign Exchange Bank – Pakistan” award for the year 2005 by world’s
leading financial journal “Global Finance”.
• “Best Bank – Pakistan” award for the year 2005 by world’s leading financial
journal “Global Finance”.
• The “Banker Magazine” in July 2005 recognized NBP as the 10th Best Bank in
terms of ‘Profit on Capital’ in the world.
• “Bank of the Year” awarded for the year 2005 by the world renowned “The
Banker” magazine owned by the Financial Times Group, London.

6.7. Problems faced during internship:

Here are the some problems or critical condition which I observed in my internship:

• The employees have the low efficiency level related to their work. They were not
know that how to perform the task in less time.
• There is the shortage of the staff in the service industries branch. The employees
who already work in that branch do a lot of work. So there is the need for more
employees for the development of that branch. Mostly employees are rotated to
fulfill the activities of the other banks.
• The employees have to enhance their technological skills and technical
education. The training process must be applied to the employees of the banks
for the development so due to this they can also perform in the foreign countries
effectively.
• NBP is running those branches which are not producing income and the bank
bear their expenses. The banks are unable to produce the cost of expenditures
so they must be cut down.
• The MCB is on top of the list due to the modern banking facilities. NBP is far
behind so it is the duty of national bank to provide the better banking facilities to
the bank.
• The behavior of the employees with the customers is not so good. The customer
most of the time feels disappointed due to the bad and rude behavior of
employees and workers as well.
• The customer satisfaction level in national bank of Pakistan is not very
admirable. The customer has to wait for getting the required information.
• In NBP there is the poor record and management system. For the certain record
the staff has to struggle hard to find the files. There is the no proper way for its
development and improvement.

102 | P a g e
National Bank Of Pakistan

• There is the need of the promotions for the sincere employees. But the new and
young employee gets the promotion after the long period of time.
• The NBP hire the people on the reference basis so the bank should motivate and
hire the people on merit basis.
• There are not the proper physical facilities for the customers, in case of the
pensions there is the rush of people and bank have not any kind of Proper sitting
arrangement.

Customer review

6.8. Recommendations
Doing my internship in national bank I have experienced some recommendations for the
national bank which would be helpful for the national bank in becoming the world class
bank in the future.

As I already discussed some problems which I faced in my internship. But the following
are the some recommendation for the improvement of the infrastructure of the

103 | P a g e
National Bank Of Pakistan

organization. The bank must follow the given steps for facing the competitiveness in the
whole country.

• The bank should need to satisfy the employees through giving the rewards. A
happy and satisfied employee delivers more than the dis satisfied customers.
The bank should gave the salaries at the fixed time and do the promotions on the
sincerity basis.
• Selection of the employees must be through the media and newspaper so the
better and qualified employees can be formulated.
• The Atta Building branch mostly done the work by manual system, so there is
need to adopt the new technologies like computerized system must be adopted.
• The bank must investigate the borrower while lending. The financial conditions of
the borrowers must be investigated that in the future he will be able to repay the
money or not. Loans must be given to the well reputed organizations because the
risk of loss can be eliminated.
• Most of the officers in the national bank have the lack of training of using the
technological tools. Present training program must be improved for improving
the efficiency of the officers and the staff as well. The old and ineffective
employees of the organization are merely a burden for the bank because of its
high cost.

6. G. CONCLUSION
During my entire training program, beginning from the internship till writing this report, I
have realized that the National Bank of Pakistan is a deliberate structured organization
and it is serving its customers all over Pakistan through its wide spread network of
branches. It is offering many services and products at easy markup rates to the valued
customers. The customers are valued and are served at the first priority. The employees
of the Bank are very much cooperative and work whole heartedly thus working hard for
the success of the Bank.

Selections are made on the basis of merit but references and approaches are very
much popular in National Bank of Pakistan. The Bank serves the people well and it has
initiated special moral initiatives while distributing pensions among people, especially
the old age people who come from far areas to get their pensions. They are dealt very
kindly and the Bank atmosphere is very customer friendly.

104 | P a g e
National Bank Of Pakistan

105 | P a g e