Internship Report
on
National Bank of Pakistan
Thandkoi Branch
This Internship report is submitted in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration
(Finance)
By
MUKARRAM KHAN
REG. NO: B (A) F 15-56
Department of Management Sciences
University of Swabi
Session (2015-2019)
Internship Report
on
National Bank of Pakistan
Thandkoi Branch
This Internship report is submitted in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration
(Finance)
MUKARRAM KHAN
REG. NO: B (A) F 15-56
Department of Management Sciences
University of Swabi
Approved by:
___________________
Mr. Atta-e-Rabbi
(Internal Supervisor)
__________________
Name:
(External Supervisor)
___________________
Mr. Shoaib Hassan
__________________
Mrs. Urooj Babar
(Head of Department)
(Internship Coordinator)
In the Name of ALLAH (SWT), the Most Compassionate, the Most Merciful
Declaration
I, hereby declare that the internship report submitted to Internship Coordinator,
Department of Management Sciences University of Swabi, by me is my own original
work. I am aware of the fact that in case my work is found to be plagiarized or not
genuine, the aforesaid has the full authority to cancel my work and I am liable to penal
action.
MUKARRAM
KHAN
i
Dedication
This report is lovingly dedicated to my parents who have been my constant source
of inspiration. They have given me the drive and discipline to tackle any task with
patience and determination. Without my parents’ prayers, love and support this report
would not have been made possible.
ii
ACKNOWLEDGEMENT
All praises are attributed to “ALLMIGHTY ALLAH” whose blessings enabled
me to complete this internship report successfully. Countless salutations are upon the
Holy Prophet MUHAMMAD (PBUH) who ordained every Muslim to years for
knowledge from cradle to grave.
I wish to express my sincere and heartiest gratitude to our internship report
supervisor Mr. ATTA-E-RABBI for his valuable inspiration, guidance, encouragement,
accommodative sympathetic attitude and constructive criticism which were necessary for
the competition of this task.
I have also heartiest gratitude to my affectionate parents who patiently supporting
me during the entire duration of my education.
iii
Abstract
A bank is purely financial institution providing a variety of services connected
with money. The provision of credit or advances like, other operations of bank also
depend upon its capital resources. The word “Bank” is derived from the “Banco”,
“Bancus” or “Banque” all of which means a bench. It was because Jews merchants in
Lombardy transacted their business of money exchange on benches.
The history of banking system in Pakistan dates back to independence of Pakistan
in August 1947 when various banks transferred their Head Quarters and funds to areas
likely to fall in Indian banking system. At the time of separation there were only two
banks having the honor to be the first commercial banks of Pakistan, namely Habib Bank
Ltd, which was set up in 1941 with its Head Office in India and the Australasia Bank
Ltd, which was established in 1944 with its Head Office in Pakistan.
National Bank of Pakistan was established on November 9, 1949 under the
National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions
which were developed after trade deadlock with India and devaluation of Indian Rupee
in 1949. Initially the Bank was established with the objective to extend credit to the
agriculture.
National Bank of Pakistan maintains its position as Pakistan's premier bank
determined to set higher standards of achievements. It is the major business partner for
the Government of Pakistan with special emphasis on fostering Pakistan's economic
growth through aggressive and balanced lending policies, technologically oriented
products and services offered through its large network of branches locally,
internationally and representative offices. The main functions of National bank of
Pakistan are to provide commercial banking and related services in Pakistan and abroad.
It also handles treasury transactions for the Government of Pakistan as an agent to State
bank of Pakistan.
The survey of Top 500 banks in the world places National Bank of Pakistan at
352 which is the top position amongst the Pakistani Banks, covered by the survey, thus
declaring NBP as the number one Bank in Pakistan
iv
TABLE OF CONTENTS
Chapter No
Title
Chapter 1.
Introduction to the Report………………………………………..
1.1
1.2
Chapter 2
Chapter - 3
…..1
Background of report …………………………………..…..…1
Background of study………………………………………….1
Scope of study……………………………….. .…………. …..2
1.3
1.4
Methodology of the study ………...…...…………………….2
1.5
Scheme of the report 3
Overview of the Organization …………………………………………...4
2.1
Brief History……………………………………………….. …...4
2.2
Nature of the Organization……………………….
2.3
Business Volume
2.4
Product Lines……………………………………………….….6.
2.5
Competitors
2.6
Introduction of the Branch
…………...5
.…………………………………………..5
……………………………………………….6
Organizational Structure…………
……………………………..…7
....…………….…………………11
3.1
Organizational Hierarchy Chart………………………….
3.2
Organizational Structure of NBP…………………………. 12
3.3
Number of Employees`….
3.4
Main Offices………………………………………….
.14
3.5
Introduction of the Department……………………….
15
3.6
Functions of the Departments ……………………………. 15
3.7
Work Done By Me During Internship………………….
Chapter- 4.
Chapter-5
Page No
11
.…………………………....14
Financial Analysis of NBP………………………..…..
22
24
4.1
Ratio Analysis ……. .……………………………….……26
4.2
Types of Ratios ……………………………………..
Finding Conclusions and Recommendations ………………..…
5.1
5.2
Conclusion
…….……………………………….…….35
Recommendation
…………………………………..37
26
35
Chapter 1
1.1 Introduction to Report
This report is about the financial area of NBP. This report describes the structure,
functions, procedures and financial condition of NBP. I spent two months at the NBP
office in Thandkoi.
1.2 Background of the Study
The role of banks in the development of a country has greatly increased with the
emergence of the role of banks in the development of a country. The intense competition
among banks, the privatization of financial institutions and the general liberalization of
the financial markets are gradually making the banking sector efficient and efficient. The
intense competition among the banks, the privatization of the financial institution and the
general liberalization of the financial markets are gradually making the banking sector
efficient and efficient.
In this era of constant change and explosion of knowledge, manifested by modern
technology, banks are also taking over these changes.
For Pakistan, a third world developing country is of vital importance to the
Pakistani economy, especially in the case of the KPK, where a large number of
remittances from abroad were made by the resident population. This contributes
significantly to the economy of Pakistan in general and the KPK in particular.
My internship report is about the NBP office in Thandkoi. I spent two months.
This report is a sincere effort to write down what was observed and experienced in two
months of internship at NBP.purpose of the study
The primary purpose of this study is to analyze the strength and Weakness of
finance Section of NBP Thandkoi Branch. Second purpose was to work in an organization
and to compare the theory and application of the management knowledge in real life
situation. Another purpose of this study was to improve personal skill i.e. human relation
and Communication skills that are to interview and work with them. Similarly, the reports’
1
purpose was also to develop analytical skills by analyzing the working of the organization
through financial analysis.
1.3
Scope of Study
The eight-week internship is not a long time to understand how the entire
organization works. However, the focus of this study is on the work of the NBP
industry and how it operates. , During this study, I was able to observe the
operations and identify various issues facing the NBP industry. The bank was
analyzed under administrative, financial and operational aspects. The main focus
was on the financial management of the bank, the work of the bank administration
and the investigation of the problems associated with the bank.
1.4
Methodology of Study
The data collected for analysis and review includes both primary and
secondary data.
1.4.1
Primary Data
The examples of primary data are and it was done through;
i. Personal observation.
ii. Interviews with staff members.
1.4.2 Secondary Data
The examples of secondary data, done with the help of;
i. Annual reports of the NBP.
ii. Manual of the banks.
iii. Internet.
2
1.5.
Scheme of Report
The report has been divided into four sections, each section having sub-
sections in it. The scheme of the report is as follows.
1. Overview of the organization
2. Organizational structure
3. Financial Analysis of NBP
4. Conclusion and Recommendations
3
Chapter # 02
Overview of the Organization
2.1 i
Brief History
The iNBP iwas iestablished ivide iNBP iOrdinance iNo. iXIX iof
iNovember i9. i1949. iBritish iGovt. idevalued iits icurrency iin iSeptember i1949, iIndia
idevalued iits irupees ibut iPakistan idid inot. iIt iled ito ia icrisis iin itrading ibetween
ithe itwo icountries iand iIndia irefused ito ilift ithe iPakistan iJute. iTo isolve ithis
iproblem ii.e. ito iexport ijute iNBP iwas iestablished ithrough ian iOrdinance iof
iGOP.iNational iBank iof iPakistan imaintains iits iposition ias iPakistan's ipremier ibank
idetermined ito iset ihigher istandards iof iachievements. iIt iis ithe imajor ibusiness
ipartner ifor ithe iGovernment iof iPakistan iwith ispecial iemphasis ion ifostering
iPakistan's ieconomic igrowth ithrough iaggressive iand ibalanced ilending ipolicies,
itechnologically ioriented iproducts iand iservices ioffered ithrough iits ilarge inetwork
iof ibranches ilocally, iinternationally iand irepresentative ioffices.
The iBank iin i1950 ihad ione isubsidiary i‘The iBank iof iBahawalpur’ ion
iDecember4, i1947 iby ithe iformer iBahawalpur iState.
NBP iwas iundertaking iTreasury iOperations iand iManaging iCurrency iChests ior
iSub iChests iat i57 iof iits ioffices iwhere ithe iturnover iof ithe ibusiness iunder ithe
ihead iamounted ito iRs.2460 imillion. i
i)
Deposits iheld iby iNBP iconstituted iabout i3.1% iof itotal ideposits iof
iall iPakistani iBanks iin i1949, iwhich irose ito i38% iin i1952. i
ii)
Growth iin iDeposits iwas iaccompanied iby iincrease iin iBank iportfolio
iin i i iadvances. iNBP ilent iout ito iTextile, iYarn, iIron iand iSteel iand
iplayed ia ipioneer irole iin isupport iof iagriculture iand icommerce. i
iii)
NBP iadvances ireached iRs.554.4 imillion iby iDecember i1959, iwhich iwas
ione ithird iof ithe itotal ischedule ibank icredit.
4
2.2 i
Nature of the Organization
National iBank iof iPakistan iis ia ipublic isector ibank iand ijust ilike
iother ibanks iit ialso iserves ias ia ifinancial iinstitution iwhich iraises ifunds ifor ifurther
iinvestments. iNBP iworks ifor ithe isole ipurpose iof ithe idevelopment iof idifferent
ieconomic iunits iin iPakistan. iLike iother ibanks ithe inature iof iNBP iis ito iaccept
ideposits iand igrant iloans ito ibusinesses iand ipeople. iThe imain ifunctions iof iNBP
iare ias ifollows iwhich ireflects iits inature.
2.2.1
Advances of Money
National iBank iof iPakistan ilends imoney iby imaking iadvances
ito icustomers ion icurrent iaccounts, iby imaking iinstallment iloans, iand
iby iinvesting iin imarketable idebt isecurities iand iother iforms iof
imoney ilending.
2.2.2
Receiving Deposits
National iBank iof iPakistan iborrows imoney iby iaccepting
ifunds ideposited ion icurrent iaccounts, iby iaccepting iterm ideposits
iand iby iissuing idebt isecurities isuch ias ibanknotes iand ibonds.
2.2.3
Transfer of Money
National iBank iof iPakistan ialso iprovide iservices iof imoney
itransfer ithrough idrafts, ipay iorder, iwestern iunion, imail itransfer ietc.
2.3 i
Business Volume
The iNational ibank iof iPakistan iis ithe iforemost ibank idetermined ito
iset ihigher istandard iof iachievements. iIt iis ithe ikey ibusiness ipartner ifor ithe
igovernment iof iPakistan iwith ispecial iefforts iemphasis ion inurturing iPakistan’s
ieconomic igrowth ithrough iaggressive iand iimpartial ilanding ipolicies. iThe ibusiness
ivolume iof iNBP iis ithe ilargest iamong irest iof ithe icommercial ibanks iof iPakistan;
iits itotal iassets irose ito iover i$ i12 imillion iUSD iin i2016, ithis ifigure iwas i$ i9.5
imillion iUSD iin i2015. iThe iloans igranted ito ithe ipeople iwere irecorded i$ i5.5
imillion iUSD. iThe inet iincome iin i2016 iwas i$ i0.912 imillion iUSD iwhile ithe
iearning iper ishare iwas i$ i0.15 iUSD. iThe inet icash igranted ifor ioperating iactivities
iwas i$ i1.084 imillion iUSD.
5
The imain ifunctions iof iNBP iare ito iprovide icommercial ibanking iand irelated
iservices iin iPakistan iand iabroad. iIt ialso ihandles itreasury itransactions ifor ithe
igovernment iof iPakistan ias ian iagent ito iSBP. iUnder ia iTrust ideed, ithe ibank ialso
iprovides iservices iof itrustee ito iNIT, iincluding isupervision iof isecurities ion ibehalf
iof iNIT.
2.4 i
Product Lines
Following iare isome iof ithe imain iproduct ilines iof iNational iBank iOf
iPakistan.
1. Working icapital iloan
2. Term iloan
3. Trade ifinance iservices
4. Cash imanagement
5. Investment iBanking
6. Arrangement iof inon ifund ifacilities
7. Mergers iand iacquisition
8. Corporate iadvisory
9. Balance iinquiry
10. Foreign iExchange iRate
11. Account istatement
12. Cheque iBook irequest
13. ATM iservices
14. Locker ifacilities
15. Remittances ifacilities.
2.5 i
Competitors
Competitors iof iNational iBank iof iPakistan iare ithe ifollowing
1. Habib iBank iLimited
2. United iBank iLimited
6
3. Allied iBank iLimited
4. Muslim iCommercial iBank
5. Bank iAl iHabib iLimited
6. Meezan iBank
7. Bank iof iKhyber
8. First iWomen iBank
9. Soneri iBank
10. Standard iCharted iBank
11. Bank iof iPunjab
12. Faisal iBank
13. Bank iAl iFalah iLimited
These iare ithe imain icompetitors iof iNBP i
2.6 i Introduction of the Branch
The iNBP iThandkoi iBranch iwas iestablished ion i15 idec i2001 iunder isection
i28(1) iof ibanking iCompany’s iordinance i1962.
i. Staff
The ibranch istaff iis iconsist iof i5 iemployees
ii. Manager.
The imanager iof ithe iBranch iis iMr. iIjaz iAhmad
iii. Cashier
The icashier iof ithe ibranch iis iNasim
iv. Assistant iClerk
Mr. iAnwar iKamal iis iworking ias ia iAssistant iClerk iin ithe ibranch.
7
v. Bank iGuard
Mr. iPervaz iis iworking ias ia ibank iguard. i i
Vi. Govt i& Remittance
The imessenger iof ibranch iis iMr iAmjad
I idid imy iinternship iin iNational iBank iof iPakistan iThandkoi iBranch..
iThe ibranch icode iis i1554. iThere iare iabout i6 iemployees iworking iin idifferent
idepartments iof iThandkoi iBranch. iFollowing iare ithe imain idepartments iof
iThandkoi iBranch
2.6.1
1.
Account iOpening.
2.
Deposit iSection.
3.
Bills iRemittance iDepartment.
4.
Clearing iDepartment.
5.
Cash iDepartment.
6.
Issue iof iinland iletter iof icredit.
Account Opening
The iopening iof ian iaccount iis ithe iestablishment iof ibanker
icustomer irelationship. iBefore ia ibanker iopens ia inew iaccount, ithe
ibanker ishould idetermine ithe iprospective icustomer’s iintegrity,
irespectability, ioccupation iand ithe inature iof ibusiness iby ithe
iintroductory ireferences igiven iat ithe itime iof iaccount iopening.
2.6.2
Deposits Section
Deposits iare ireferred ito ias ithe i‘LIFE_BLOOD’ iof ithe ibank.
iThe ifundamental ifunction iof ia icommercial ibank iis ithe iacceptance
iof ideposits. iBanks iaccepts ideposits ifrom ithose iwho ihave isurplus
imoney iin itheir ihands ibut ithey iare iunable ito imake iuse iof iit. I
When ia ibank ireceives ia ideposit ifrom icustomer, ithe
irelationship iof idebtor iand icreditor iestablished iwhereby ia icustomer
8
ibecomes ithe icreditor iand ithe ibank ibecomes idebtor. iThe iamount
iowned iby ithe ibank imust ibe ipayable ito ithe idepositor ion idemand
ior iafter isome itime. iDeposit iSection iin ia ibank ideals iwith ithe
iacceptance iof ideposits iand ipayment iof icheques.
2.6.3 i Bills Remittance Department
‘Remittance’ imeans isending imoney ifrom ione iplace ito
ianother iplace. i iSo iNational iBank iOf iPakistan iprovides inumber iof iservices ito
itransfer imoney ifrom ione iplace ito ianother iplace. iThese iservices iinclude iDemand
idraft, iTelegraphic itransfer iand iMail itransfer. iBills iRemittance iDepartment ialso
iworks ion iPayment iOrders iand iShort iCredit.
i.
Payment iOrder.
ii.
Demand idraft i
iii.
Telegraphic itransfer i
iv.
Mail itransfer i
2.6.4 i Clearing Department
All icommercial ibanks iare ithe imembers iof ithe ibanker’s
iclearing ihouse iwhich ifacilitates ithe isettling iof idaily ibalances idue
ibetween imember ibanks iarising ifrom ithe icheques iand icash
itransactions ithroughout ithe icountry, iwhether iby ithe igeneral ipublic
ior iindividual ibanks.
2.6.5 Cash Department
Cash iDepartment iis ithe imost iimportant isection iin ithe ibank. iIt
iperforms ithe ifollowing ithree imain ifunctions:
2.6.5.1 Bank payments i& receipts
9
Bank ipayments imeans icash ipayments ito ithose ipersons
iwho irepresent icheques iand ibank ireceipts iincludes icash
ideposits imade iby iaccount iholders.
2.6.5.2 Government receipts i& payments
Government ireceipts imeans icollection iof iincome itax,
iproperty itax, isales itax iand itraffic ichallans. iGovernment
ipayments iinclude isalary ipayments ito iGovt iemployees iand
iPension ipayments.
2.6.5.3 Collection of utility
It iincludes icollection iof iall iutility ibills iwhich iincludes
ielectricity, igas iand iwater ibills. iIt ialso iincludes iPTCL ibills.
iii
2.6.6 i Issue of inland letter of credit
NBP iis icommitted ito ioffering iits ibusiness icustomers ithe
iwidest irange iof ioptions iin ithe iarea iof imoney itransfer. iIf iyou iare
ia icommercial ienterprise ithen iour iLetter iof iCredit iservice iis ijust
iwhat iyou iare ilooking ifor. iWith icompetitive irates, isecurity, iand
iease iof itransaction, iNBP iLetters iof iCredit iare ithe ibest iway ito ido
iyour ibusiness itransactions.
10
Chapter 3
What I have learnt
3.1 Organizational Hierarchy Chart
President & Chairman
Board of Directors
Senior Executive Vice President
Audit
Committee
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Officer Grade I
Officer Grade II
Officer Grade III
Assistant
Source (National bank annual report 2016-18)
3.2 i i Organizational Structure of NBP
Organizations icannot ifunction iwithout iproper iarrangements ifor iits ispecific
itasks iand iduties. iFor ithis ipurpose iorganizations iare idivided iinto
idepartments. i“The iprocess iof igrouping ijobs iaccording ito isome ilogical
11
iarrangements”
i
is
icalled
idepartmentalization.
iThe
ibasis
iof
idepartmentalization iis icommonly iproduct, icustomers, ifunction iand ilocation.
iNational ibank ihas idone iits idepartmentalization iforming ia imatrix istructure.
iFollowing iare ithe imain idivisions iof ithe iorganization:
3.2.1 Head Office
The ihead ioffice iof inational ibank iof iPakistan iis isituated iin iKarachi.
iAll ibraches, iregional ioffices, icorporate ibraches iand ioverseas ibranches iand
irepresentative ioffices iwork iaccording ito irules iand iregulation iset iby ithe
ihead ioffice. iThe ihead ioffice iis ioperationally iin icharge iof icentral iaffairs
iincluding ithe idelegation iof ipowers iand iauthority ito ithe i29 iregional ihead
iquarters ithroughout ithe icountry. iAll ithe isenior imanagement iteam iworks iin
ithe ihead ioffice.
3.2.2 Board of Directors
The ipresident iof iNBP itakes iout ithe iimportant idecisions iwith ihelp
iof iBoard iof iDirectors. iThe ipresident iof ithe ibank iis ialso ithe ichairman iof
ithe iBoD. iBoD icomprises iof isix imembers ialong iwith ithe ichairman iand ia
isecretary iof iBoD. iBoD iholds itheir imeeting ifrequently ithrough iout ithe
iyear. i
3.2.3 Central Departments
To ifacilitate igrowth iand iquality iservices ito iits icustomers, ito ireduces
idecision imaking ilayers iand ireduce iburden ion ifew idepartments, ithe
ibank ihas ibeen idivided iinto ia ilot iof igroups iand idepartments iat ithe
icentral ilevel. iSenior iExecutive iVice iPresidents ior iExecutive iVice
iPresidents iheads ieach idepartment iand igroup. iThe igroups iand
idepartments iare ias ifollowing:
1. Operations iGroup
2. Corporate i& iInvestment iBanking iGroup
3. Special iAssets i& iRemedial iManagement iGroup
4. Commercial i& iRetail iBanking iGroup
5. Audit i& iInspection iGroup
12
6. Strategic iPlanning i& iEconomic iResearch iGroup
7. Risk iManagement iGroup
8. Treasury iManagement iGroup
9. IT iPlanning i& iImplementation iGroup
10. Human iResources iManagement iDepartment
11. Organization iDevelopment i& iTraining iDepartment
3.2.4 Regional Offices
The ibank iformerly iworked iunder ithe izonal ihead ioffice isystem,
iwhich icentralized ithe iauthority itoo imuch iand ihampered igrowth iof ithe ibank. iTo
iimprove icustomer ifocus, ireduce idecision-making ilayers iand ipromote iteamwork,
ithe ibank ihas isubstantially irestructured iits ibusiness. iAn ientire ilayer iof icontrolling
ioffices ii.e. izones ihas ibeen ieliminative iand itotal inumber iof iregions ihas ibeen
ienhanced ifrom i9 ito i29. iA inew imatrix istructure iis inow iin iplace, iwhich iseparates
ithe ifront iand iback ioffices iwith ispecial iemphasis ion icorporate igovernance iand
ienhanced iinternal icontrols.1 iRegional ioffices iare ifurther isubdivided iinto ifive imain
ifunctional igroups iaccording ito ithe ineeds. iEvery igroup ior idivision iis iheaded iby
iits iregional ichief. iThe ifive ifunctional idepartments iat iregional ilevel iare:
1. Business idepartment
2. Operations idepartment
3. Risk iManagement iDepartment
4. Compliance iDepartment
5. Human iResource iDevelopment iDepartment
13
3.3 Number of Employees
Over iall iemployees iof iNBP iare ias ifollows:
1. Permanent iemployees iare i13273
2. Temporary iemployees iare i842
3. Bank iown istaff istrength iis i14079
4. Outsourced iemployees iare i2350
5. While ithe itotal istaff istrength iof ioverall iNational iBank iof iPakistan
iis i16429
The iNational iBank iof iThandkoi iBranch ihas i05 iemployees iin iwhich i2 iof
ithem iare i19 igrade iofficers i(Branch imanager iand ioperational imanager) iwhile
iothers iare igrade itwo iand igrade ione iemployees.
3.4 Main Offices
Head Office
Address: iNBP iBuilding, iI.I. iChundrigar iRoad, iKarachi. i
Regional Office
Address: iMain iBazzar iDistt iKarak
Regional Office
Address: iShahra-e-Staff iCollege, iQuetta iCantt.
Regional iOffice
Address: iCivic iCentre iBranch. iG-6, iIslamabad.
Regional Office
Address: iMain iBranch, iShahrah-e-Quiad-e-Azam iRd, iLahore.
Regional office
Address: iCantt iBoard iBuilding, iThe i iMall, iRawalpindi.
14
3.5 iIntroduction of the Department
The iNational iBank iof iPakistan iThandkoi iBranch icomprises iof imany
idepartments iincluding iCash, iGovernment, iAdvances, iRemittance, iAccount
iOpening, iEstablishment ietc. iThe iDepartment iof imy iinternship iprogram iwas i
iAccount iOpening, iRemittances, iDeposits iand iBills iSection iand iEstablishment. I
The idepartment iManager ihelped ime iin ilearning ithe ioperations iand ipsyche
iof ithe idepartment. iDay iby iday ihe ishares ihis iexperience iwith ime iand ialso
ishares ihis iwork. iAfter iI ilearnt ithe icheque iclearing iI istarted ito iperform imost iof
ithe iwork iof ithe idepartment. iThe iRemittance imanager iwas ivery ihard iworking
iand iloyal ito ithe iorganization. iAt ithe iend iof ithe icalendar iday iall ithe iemployees
iof ithe ibranch itogether iand ishares ithe ibusiness ithoughts. iThe ioverall ienvironment
iof ithe ibranch ias iwell ias idepartment iwas ivery igood iand iI ienjoyed ia ilot ito
iwork iover ithere.
3.6 i
Functions of the Departments i
3.6.1 Deposit Department
Deposit idepartment iis ione iof ithe imain idepartments iof ithe
ibank ias iit ideals iwith ithe isupply iof imoney ito ithe ibank. iDeposits iare ithe iinputs
i(raw imaterial) ifor ithe ibank. iEach iand ievery ibank itries ito iincrease iits
ideposits.NBP iof iThandkoi iBranch iis itrying iits ibest ito iincrease iits ideposits. iIn
ideposits itwo itypes iof iaccounts iare ioperated i
1.
Types of Account
i.
Current Account
Current iaccounts iare icalled idemand iliability iin
ibanking iterminology. iNo iprofit iis ipaid ion ithese
iaccounts.
15
ii.
PLS Accounts
These
iare
iprofit
iand
iloss
isharing
iaccounts.iThese iaccounts ican ibe iopened iwith ithe
iamount inot iless ithan iRs i1000/-. iIn iPLS iaccount
iprofit iis icalculated ievery imonth ibut iis ipaid iafter isix
imonths.
2. iClassification of Accounts
Current iand iPLS iaccounts ican ibe ifurther iclassified ion ithe
ibasis iof iconditions iimposed ion ithese iaccounts.
i.
Individual Accounts
Individual iaccounts ias ithe iname iimplies ican ibe
iopened iand ioperated iby ia isingle iperson.
ii.
Joint Account
Two ito ifour ipersons ican iopen ithis itype iof iaccount.
iIf imore ithan i4 ipeople iwant ito iopen ijoint iaccount ithen ithey
ican iopen ionly icurrent iaccount.
iii.
Minor Account
In icase iof ia iminor ia iguardian ioperate ithe iaccount ion
ibehalf iof ithe iminor. iWhen ithe iminor iattains ithe iage ihe ican
ioperate iit iby ihimself.
16
iv.
Staff i Account
Staff iaccount iis imaintained ifor ithe iemployees iof ithe
iNBP. iSalaries iof ithe istaff iare icredited ito itheir iaccount.
v.
Partnership Account
This iaccount imay ibe ioperated iby ia ipartnership iof itwo
ior imore ipersons. iFor ithis iaccount ia ipartnership ideed iis
irequired. iPartnership iaccount ican ionly ibe ia icurrent iaccount.
3. iAccount Opening Procedure
The imain ifunction iof ia ibank iis ito icollect iand iincrease ithe iamount
iof ideposits. iDeposits iare ithe iinputs, iwhich iare iprocessed iin iorder
ito iearn iprofit. iThe inumber iof ideposits idetermines ithe ifinancial
istrength iof ithe ibank. i
i.iOpening of an Account
Account iis iopened ion ithe irequest iof icustomers. iOnly iofficers
iare iallowed ito iopen ithe iaccounts. iAccounts iare iopened ionly iwhen
ithe iclients ipresent ithemselves iin iperson. iIn icase iof iPurda inashin
iladies iaccounts ican ibe iopened iin ithe iabsence iof ithe iaccount iholder
ionly iafter idiscrete iinquiries iand ion ithe imanager’s isatisfaction iof
ithe iaccount iholder. iWhen ia iclient iapproaches iThandkoi iBranch ifor
iaccount iopening, ihe iis igiven ian iaccount iopening iform. iHe ihas ito
ifill ithe iform iand ialso iget iintroducers isignature.
The iintroducer ishould ibe ian iaccount iholder iof iNBP
iThandkoi iBranch. iAccount iopening iform icontains ifollowing iinformation.
ii. iName
17
The iname iof ithe iaccount iopener iis imentioned iin ithe iname
icolumn. iFull iname iis iwritten iin iblock iletters iwith ifather’s iname.
iii. iOccupation
In ithis icolumn ithe iclient iis irequired ito imention ifull
iparticulars iof ioccupation ii.e. iin icase iof ibusiness ithe inature iof
ibusiness iand iin icase iof iservice ithe iname iof iservice ishould ibe
igiven.
iv. iAddress
In ithis icolumn ithe iclient iis irequired ito igive ihis/her icomplete
ipostal iaddress.
Special iinstructions ito ioperate ithe iaccount:
It iis ian iimportant icolumn iand ishould inever ibe ikept iblank.
iThe iclear iinstructions iregarding ioperation iupon ithe iaccount iis igiven
iin ithis icolumn ii.e. iwho iwill ioperate ithe iaccount iof ithe iaccount
iholder. ie.g. iif ia iperson ihas iopened ia iaccount iand ihe imentions iin
ithis icolumn ithat ianother iperson iwill ioperate ithe iaccount ion ihis
ibehalf, ithen ithe isignatures iof ithat iwill ibe itaken iand icheque ibook
iwill ibe iissued iin ithe iname iof ithat iperson.
v. Introducer’s Signatures
The iofficer iwho iwill ireceive ithe iaccount iopening iform imust
iinsist ion ithe iintroducer’s ifull iname iand iaddress ialong iwith
isignature.
vi. Specimen Signatures
The iofficers imust itake ithe ispecimen isignatures iof ithe iperson
iwho iis ito ioperate ithe iaccount. i iThese isignatures iare itaken ion
isignature icards
18
vii. iComputerize National Identity Card
It iis ithe ibasic irequirement ithat ithe icopy iof inational iidentity
icard iis iattached iwith ithe iaccount iopening iform. iApart ifrom ithis ioriginal iidentity
icard imust ibe ishown ito ithe iofficer.
viii. Cheque Book Requisition Memo
When iall ithe iformalities iof iaccount iopening iform iare ifound
icomplete ithen ithe icheque ibook iis iissued. iFor ithis ipurpose ifirst iof
iall ithe icheque ibook imemo iin ithe iform iis ifilled iand isigned iin ithe
ipresence iof ithe iofficer iissuing ithe icheque ibook iwho iverify ithe
isignature.
3.6.2 iRemittances Department
The iword i“Remittance” imeans isending imoney iby imail ior
iany iother imethod. iIt imay ialso ibe idefined ias i“Payments isent iby
imail ito ia icenter ifor iprocessing”. i
In ithe iThandkoi iBranch ithere iis ilarge inumber iof ireceipts
iand idrafts, iso iNBP ihas iplaced itwo iofficers ifor ithe itransfer iof
ifunds iand ifor ireceipts irespectively.
3.6.2.1 Demand Drafts iD.D’s)
Demand idraft iis, ias iits iname iimplies, ipayable iby
idemand. iDemand idraft iis iused ifor ithe itransference iof
imoney ifrom ion icity ito ianother icity. iThis iis iissued iby ione
ibranch iand ipayable iat iother ibranch iof isame ibank ior iothers
ibank’s ibranch. ie.g. idemand idraft iissued iby iNBP ipayable iby
iMCB
There iare itwo itypes iof idemand idraft’s ithat iare iopen iD.D
iand ithe isecond ione iis icross iD.D. ilet idifferentiate iit;
19

Open Demand Draft
Is ithat ione, iin iwhich iit iis ipayable idirectly ion ithe
icounter ito icustomer iand ithere iis ino ineed ito icredit ithe
iaccount iof ithe icustomer.

Crossed Demand Draft i
Is ithe isecond itype iof ithe idemand idraft. iIt iis ione iby
iwhich ipayment iis imade ithrough iaccount. iThe iamount iof
idemand idraft iis icredit ito ithe ifavoring iaccount iand ithen ihe
ican itransact iin ithe iordinary iway ithrough icheque.
3.6.2.2 Mail Transfer
Transfer iof ifunds ifrom ione ibranch iof ithe isame ibank iinside
ior ioutside ithe icountry ithrough imail/or icourier iservices iis icalled
imail itransfer. iThe imail itransfers iis isimilar ito ithat iof itelegraphic
itransfer, ibut iif ia iperson’s iaccount iis inot iexisted iin ithe isaid ibranch,
iin ithis icase ithe isending ibranch iwill ishift ithe iamount ito iconcerned
ibranch iand iadvice iwill ibe isend ito ithe iother ibank iin ihis iaccount
iexist. iIn isuspense iaccount ithe iparty iwill ihave ito iprove iidentity.
3.6.2.3 Pay Order
It iis ivery iuseful, isafe iand imost iconvenient imethod ifor
ipayment iin ilocal iarea. iThe iNBP ipay ito icustomer ithen ithe ibank
iretrieves imoney ifrom ithe icompany. iAn iorder ito ipay iis isent ito
icompany ior iorganization ito igive ithe icertain isum iof imoney, iwhich
iwe ipaid ito icustomer.
In ithis ipay iorder ithere imust ibe ithe iaccount iof ithe icustomer
iotherwise ihe iwill ipay iextra icharges. i i
3.6.2.4 Telegraphic Transfer (T.T’s)
20
The iworld iis ichanged iso iquickly iand ithe irequirements iof
ibanks iand iother iorganization ialso ichanged. iCompanies ineed ithat ito
itransfer ithe imoney ivery ifastly. iSo ithere iis ia inew itransfer icalled
ithe iTelegraphic itransfer. iIt iis iissued iwhen icustomer irequest ifor iit
iand ithe iamount iis ireceived. iIt iis isent ithrough icables. i
3.6.3 iAdvances Department
In ithe iadvances idepartment ithere iare idifferent itypes iof
iadvances iavailable, iwhich ican ibe igranted ito ipeople iby isubmitting
iessential idocuments iand iother inecessary ipapers, iwhich iwill ifulfill
ithe icriteria ifor iloan.
Advances iand ifinancing iin ibanking ibusiness irefers ito
iprovision i(supply) iof imoney ion icredit iand iit iis ithe imost iimportant
idepartment iof ithe ibank. iIt ideals iwith ishort-term iadvances iand ilong
iterm iadvances.
3.6.3.1 Short Term Loans
In ithis ikind iof iloan ia ilump isum iamount iis ipaid iafter
ione iyear. iIn ifirst icategory ithere iare ifurther ifour ikinds iof
iloans, ispecified ias iunder:
1. Gold iloan i(1 ito i3 ilacks)
2. Running ifinance
3. Cash ifinance
4. Small ifinance i(1 ilack ito i5 iLack)
All iof ithese iloans iare ifor ione iyear ibecause iany iloan icoming
iunder ithe icategory iof ishort iterm iis imostly i& inot imore ithan ifor
ione iyear. iShort-term iloans iare ifor idaily iroutine iexpenses ie.g.,
isalaries, ibills, iwages ietc.
3.6.3.2 Long Term Loans / Fixed Financing
21
In ilong iterm iloans iwe ihave ionly ione ikind iof iloan ii.e.,
iProject ifinancing. iWhich iis imostly ifor i5 i& i7 iup ito i10 iyears?
iFixed ifinancing iis ialso icalled idemand ifinancing.
3.6.3.3 Working Capital Loan
These iare itypes iof iloans iwhich iare ifor ione iyear itime iperiod.
iCash iFinance
It iis isanctioned iafter ia ikeen iobservation iof iworking icapital.
3.6.3.4 Running Finance
It iis isanctioned iagainst iMIC i(monthly iincome icertificates) ior
ipersonal iguarantee. iIn irunning ifinance iwe idon't ipledge ithe istock.
3.6.3.5 Small Finance i
It iis igiven ifor ismall ibusiness ioperations iusually ifor ione
iyear.
3.6.3.6 Gold Loan i i
These iloans iare iprovided iagainst ipledge iof igold. iIt iis igiven
i@ i16% imark-up.
It iis ionly igiven iby iN.B.P., ias iwe iknow ithat ifor ievery ikind
iof iloan igiven iby ibank ineeded isome ikind iof isecurity. iAs ithe iname
iindicates iin igold iloan ibank ikeeps igold ias isecurity.
3.6.3.7 Secured and unsecured loan
In isecured iLoan ithere iis ino ichance iof idefault ibecause ithe
ibank iagainst iliquid isecurity igives iloan iand ibank ican ieasily isell ithe
iliquid iassets iand ican isafe iitself ifrom iinsolvency.
22
3.6.3.8 Advance Salary:
In ithe idepartment iof iadvances ithere iis itype iof isalary
iadvances iwhich igive iloan ito ithe ipure iGovt iemployees. iIn ithis ifor
ithe iapplicants ithere iare idifferent idocuments ithat iare iessential ifor
ithe iloan ithese iare ias ifollowed;
Application iform i
References ishould ihave iaccount iin ithe ibranch
DDO isignatures
References iNIC icopies iand iapplicant ialso.
Salary islip
Hundred irupees istamp ipaper
Three isigned icheques iof ithe iapplicant
3.7 Work Done by me During Internship
I ihave icompleted imy ipractical itraining iin iNBP i iThandkoi i(1554). iFor itwo
imonths iof ithe iperiod iof imy itraining, iI itried imy ibest ito istudy idifferent ithings
ibut iit iwas idifficult ito idone icomplete iwork iin irespect iof iall iaspect iof ibanking
iin iall ithe idepartments iduring ithe iperiod iof i2 imonths iinternship itraining.
iHowever, iI itried ito ideal iin iall ithe idepartments ifor ithe isake iof ipractical
iknowledge.
Major iactivities iperformed iduring imy iinternship iprogram iare ias ifollows:
Ist iweek
In ithe ifirst iweek iI iobtained igeneral iinformation iregarding ibank. iI istudied
iabout ichecque ithe igeneral ifor ifilling ichecque iand iobtain idifferent iinformation
iabout ichecque. iI ialso ibecame ito iknow iabout ithe idormant iand iinoperative
iaccount. iHow iaccounts ibecome idormant ior iinoperative.
I ialso istudied iabout idifferent ivouchers ii.e. idebt ivoucher, icredit ivoucher, icash
ivoucher, iTransfer ivoucher ietc.
2nd iweek
In ithis iweek iI ilearned iabout iSC i(Short iCredit), ihow iit iis ioriginated.
23
3rd iweek
In ithis iweek iI ilearned ibout iSC iresponding, ihow iit iis irealized. iThere iare
idifferent icharges ii.e. iPNT icharges, iFED icharges iand icommission icharges. iAfter
ideduction iof ithese icharges ithe iremaining imoney iis itransferred ito ithe icostumer
iaccount.
4th iweek
In ithis iweek iI iwork iin iaccount iopening idepartment. iIn ithis idepartment, iI
igain ithe ipractical iknowledge iabout iopening iaccount. iThis idepartment ideals iwith
iopening iand iclosing iof iaccounts ifor iits icustomers iand iall imatters iregarding
ithereof. iI istudied idifferent irules iand iregulation iregarding iopening iof iaccount. iI
ialso ibecome iknow ithat, iwhat iare ithe iinitial irequirements ifor iopening ian iaccount
iin iNBP.
5th iweek
In ithis iweek iI ilearned iabout iDraft, ihow iis iprepared. iI ialso istudied iabout
ipayment iorder.
6th iweek
In ithis iaccount iweek iI ilearned iabout iMT i(Mail iTransfer). iI istudied iabout
iall ithe irules iand iwork ipractically ion iit.
7th iweek
In ithis iweek iI istudy irule ifor imaking iTT i(Telegraphic iTransfer).
8th iweek
In ithis iweek iI itry imy ibest ito iknow iabout iBBO. iI iset iwith iconcerned
iOfficer iof ibranch iand istudy idifferent ientries.
24
Chapter 4
Financial and SWOT Analysis
4.1 iRatioiAnalysis:
Ratio analysis is a quantitative method of gaining insight into a company liquidty,
operational efficiency, and profit ability by comparing information contained in its
financial statements.
4.2 Types of Ratios:
Following iare ithe itypes iof iratio

Liquidity Ratio:
Ratio ithat imeasures ia ifirm’s iability ito imeet ishort iterm iobligation
i.liquidity iratios iare icurrent iratio iand iquick iratio.

Current Ratio:
“This iratio irelates icurrent iassets ito iits icurrent iliabilities”. iIt
ishows ithat ihow ithe iorganization ihas imore iassets iand istrength iof ithe
iliquidity ito ipay iits idebts. iIt iis icalculated ias:
Current iRatio i= iCurrent iAssets i/ iCurrent iLiabilities
Table i4.3 iCurrent iRatio i
Year
Current iAssets
2018
35,004,719
2017
28,997,227
2016
23,682,557
Current
48,215,943
40,156,775
31656803
iLiabilities
Current
iRatio
0.72
0.72
0.74
i i i i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
Interpretation:
25
An iincrease iin ithe icurrent iratio irepresents iimprovement iin ithe iliquidity
iposition iof ithe ibank iwhile ia idecrease iin ithe icurrent iratio iindicates ithat ithere ihas
ibeen idis-improvement iin ithe iliquidity iposition iof ithe ibank. iCurrent iRatio iin i2016
iis iincreasing ias icompared ito i2017 i& i2018. iIn i2016 i&2018 iit iis istable.

Total Asset Turnover:
“This iratio irelates isales ito iits itotal iassets”. iIt iis
icalculated ias;
Total iasset iturnover i= iSales i/ iTotal iAssets
iii
Table i4.4 iTotal iAsset iTurnover i
Year
Sales
2018
1,568,284
2017
4,207,155
2016
3,390,014
Total iAssets
60,154,584
50,794,303
38,810,570
Total iAsset iturnover
0.026
0.082
i i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
0.087
Interpretation:
This iratio ishows ithat ihow iefficiently ian iorganization iuse iits iassets. iHigh
ivalue iof itotal iasset iturnover imeans ithat ithe icompany iis iusing iits iassets
iefficiently. iThis imeasure iis iprobably iof igreatest iinterest ito imanagement, ibecause
iit iindicates iwhether ithe iefficient ioperation ihas ibeen ifinancially iefficient. iTotal
iasset iturnover iis iincreasing iin i2016 ias icompared ito i2017 i& i2018 iwhich ineeds
ito ibe iimproved.

Gross Profit Margin Ratio:
26
Gross iprofit imargin irelates iprofit iof ithe iorganization
ito iits isales i(interest iearned iin icase iof iBank).This iis
icalculated ias.
Gross iProfit iMargin iRatio i= iGross iProfit i/ iInterest
iEarned
iii
Table i4.5 iGross iProfit imargin iratio i
Year
Gross iProfit
2018
723,839
2017
1,664,532
2016
121,509
Interest iEarned
587,247
1,604,855
(262,193)
Gross
iProfit 1.23
1.03
0.46
i i iiMargin
i i i i i i iiRatio
iSource: i iNBP iannual ireport i2016, i2017, i2018.
Interpretation:
This iratio iindicates ithe iprofit ithat ithe ifirm iearns ion ithe iinterest. iIn i2016
ithe iGross iprofit imargin iration iis idecreasing iand iin i2017 i& i2018 ithis iratio iis
iincreasing. iIt ishows ithat ithe ifirm iGross iprofit iis irecovering.

Net Profit Margin:
“This iratio imeasures ithe ifirm’s iprofitability iof isales/
iinterest iearned iafter itaking iaccount iof iall iexpenses iand
iincome itaxes”.
This iratio ican ibe icalculated ias:
Net iProfit iMargin iRation i= iNet iProfit iafter iTaxes i/
iInterest iEarned
Table i4.6 iNET iPROFIT iMARGIN
27
Year
Net iProfit iafter itaxes
2018
179,690
2017
563,486
2016
637,183
Interest iEarned
587,247
1,604,855
(262,193)
0.351
(0.243)
Net iProfit iMargin 0.305
i i iiRatio
i i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
Interpretation:
It iindicates ithe ifirm’s iprofit iwith irespect ito iinterest iearned. iIn i2016 iit iis
idecreasing ias icompared ito i2017 iand iin i2018 iit iis ialso idecreasing ias icompared
ito i2014. iIncrease iin ithis ivalue ishows ithat ithe ifirm iNet iProfit iafter itaxes iis
ihigher iand ivice iversa.

Returnion Equity:
ROE icompares inet iprofit iafter itaxes ito ithe iShare
iholder’s iEquity. iThis iratio iis icalculated ias:
ROE=Profit iafter iTaxes/Share iHolder’s iEquity
Table i4.7 iReturn ion iEquity i
Year
Profit iafter itaxes
2018
179,690
2017
563,486
2016
637,183
Shareholder’s iequity
9,913,191
9,400,373
5,962,297
Return ion iequity
0.018
0.059
0.106
i i i i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
Interpretation:
It iindicates ithe iProfit iafter itaxes ito ithe ishare iholder’s iequity. iIncrease iin
ithis iratio imeans ithat iprofit iafter itaxes iis ihigher iwith irespect ito ithe ishare iholder’s
28
iequity iand ivice iversa. iIn i2016 iit iis iincreasing ias icompared ito i2017 i& i2018. iIn
i2017 iit iis ialso iincreasing ias icompared ito i2018.

Return on Assets:
This iratio ishows ithe iefficiency iof iorganization ithat
ihow iefficiently iutilizes itheir iassets. iThis iratio irelates iprofits
ito iassets. iIt iis icalculated ias: i
ROA i= iProfit iafter iTax/Total iAssets
Table i4.8 iReturn ion iAssets i
Year
Profit iafter itax
2018
179,690
2017
563,486
2016
637,183
Total iAssets
60,154,584
50,794,303
38,810,570
Return ion iAssets
0.002
0.011
0.016
Source: i iNBP iannual ireport i2016, i2017, i2018..
Interpretation:
This iratio ishows ithat ihow ithe ifirm iefficiently iutilizes itheir iassets. iIncrease
iin ithis iratio iindicates ithat ithe ifirm iprofit iafter itax iis ihigher ias icompared ito iits
itotal iassets. iIn i2016 iit iis iincreasing ias icompared ito i2017 i& i2018. iIn i2018 iit
iis idecreasing ias icompared ito i2016 i& i2017.

Investment iDeposit iRatio:
This iratio ishows ithe icomparison iof iinvestments iand
ideposits. iIt iis icalculated ias:
Investment iDeposit iRatio=Investments i/ iDeposits
Table i4.9 i i iInvestment iDeposit iRatio
29
Year
Investments
2018
29,341,227
2017
19,852,730
2016
17,925,911
Deposits
45,384,411
36,981,351
26,285,794
Investment
0.646
0.536
0.681
i i iiDepositRatioRatio
i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018..
Interpretation:
It iindicates ithe ifirm’s iinvestments ias icompared ito iits ideposits. iIncrease iin
ithis ivalue ishows ithat ithe ifirm’s iinvestments iare ihigh ias icompared ito iits ideposits
iand ivice iversa. iIn i2016 iit iis iincreasing ias icompared ito i2017 i iand i2018. iIn
i2018 iit iis iincreasing ias icompared ito i2017.

Debt Ratio:
It irelates ithe ifirm’s iuse iof idebt ito ifinance iits iassets.
iIt iis icalculated ias:
Debt iRatio i= iTotal iDebt i/ iTotal iassets i
i i i i i i iTable i4.10 iDebt iRatio
Year
Total iDebt
Current iAssets
Debt iRatio
2018
50,241,393
2017
41,393,930
2016
32,848,273
35,004,719
28,997,227
23,682,557
1.43
1.42
1.38
i i i i i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
Interpretation:
The iDebt iratio ishows ithe ipercentage ithat ihow imuch iout iof itotal iasset ihas
ibeen iborrowed. iThe igreater ithe iratio ithe igreater ithe iamount iof iother ipeople’s
30
imoney ibeing iused ito igenerate iprofit. iIn i2016 iit ihas ibeen idecreasing ias icompared
ito i2017& i2018. iIn i2017 iit ihas ibeen idecreasing ias icompared ito i2018.
4.11 Swot IAnalysis
SWOT iAnalysis iis ia istrategic iplanning imethod iused ito ievaluate ithe
iStrengths, iWeaknesses, iOpportunities, iand iThreats iinvolved iin ia iproject ior iin ia
ibusiness iventure. iIt iinvolves ispecifying ithe iobjective iof ithe ibusiness iventure ior
iproject iand iidentifying ithe iinternal iand iexternal ifactors ithat iare ifavorable iand
iunfavorable ito iachieving ithat iobjective. iIf iSWOT ianalysis idoes inot istart iwith
idefining ia idesired iend istate ior iobjective, iit iruns ithe irisk iof ibeing iuseless. iAn
iexample iof ia istrategic iplanning itechnique ithat iincorporates ian iobjective-driven
iSWOT ianalysis iis iSCAN ianalysis. iStrategic iPlanning, iincluding iSWOT iand
iSCAN ianalysis, ihas ibeen ithe isubject iof imuch iresearch.
 Strengths: iAttributes iof ithe iorganization ithat iis ihelpful ito iachieving
ithe iobjective. i
 Weaknesses: iAttributes iof ithe iorganization ithat iis iharmful ito iachieving
ithe iobjective. i
 Opportunities: iExternal iconditions ithat iis ihelpful ito iachieving ithe
iobjective. i
 Threats: iExternal iconditions iwhich icould ido idamage ito ithe ibusiness's
iperformance. i
4.11.1 Strengths:
 Advance isalary iproduct:
 It iexists iin ithe ilist iof itop i10 ibanks iin ithe iASIA.
 It ihas ithe ihighest iprofit iamong ithe ilargest ibanks iof ithe iASIA. i
 Its ipaid-up icapital iis ivery ihigh i
 Very iless iuncertainty ibecause i iof ia iGovt. ibank i
 High iconfidence idue ito ihigher icapital iinvestment.
 LC i(letter iof icredit) iis iacceptable iall iover ithe iworld.
 Chest ibranches ican isupply icash ion ithe ibehalf iof istate ibank.
 Chest iloans ican ibe iused ifor i ilimited itime
31
 It iholds ithe iGovt. itreasury.
 The ibiggest icustomer iof iNBP iis iGovt. iof iPakistan.
 Work ias icorresponding iof iASKARI ibank
 Provide iHigh ipackages ito iemployees.
 Provide ihigh istaff ibenefits.
 Recruitment ioccurs iafter ievery iyear. i
 MTO’s iselection iis iplanned itill i2010.
4.11.2 Weaknesses:
 The iMajor iproblem iwith iNBP iis iits iimage ias iit iis ia iGovt. ibank
iso ithe ivision iof ithe icustomer iis inot ipositive iabout iit. i
 People ithink iit iwill inot iprovide ithem isatisfactory iservices.
 In imany ibranches imanagement iis inot iup ito idate.
 In ismall iarea’s ibranches iemployees ihave iless ieducation.
 Award iand ipromotion ipolicies iare inot iimplemented iin iall ibranches.
 There iis ino iconcept iof ijob irotation
 Employees ihave ilow icoordination ilevel iamong ieach iother.
4.11.3 Opportunities:
 Advance isalary ifor iemployees
 Employee ibenefits
 Pensions
 Award ifor iemployee iperformance
 Promotions
 Corporate iplanning ilearning.
4.11.4 Threats:
 Turn iout iof iemployee
 Job isecurity iand iStrugglers
 At ia itime ido ino. iof ijobs idue ito icompetitor.
 NBP ihave ito ido ithose ijobs iwhich ihave ino iloss iand ino iprofit
32
ibecause iof itheir icompetition
 Customer idissatisfaction
 Slow iactions ion icomplains
 Political ienvironment.
 Table
i4.1
i
iSTATEMENT
iOF
iFINANCIAL
iPOSTION
i(BALANCE iSHEET)
 For ithe iyear iending iJune i30
 i
i
Statement iof iFinancial
Rupees iin i“000”
ASSETS
June 30, 2018
June 30, 2017
June 30, 2016
Cash & Balances with treasury Banks
2,904,139
5,079,720
1,542,102
Balances with other Banks
2,488,477
1,502,684
2,403,698
Lending’s to financial institutions
2,708,76
2,562,093
1,810,846
Investments
29,341,227
19,852,730
17,925,911
Advances
21,846,716
18,238,333
11,835,962
Operating Fixed assets
1,184,180
1,121,554
1,013,670
Deferred tax asset-net
311,306
443,320
456,420
Other assets
1,807,663
1,993,869
1,821,961
TOTAL ASSETS
60,154,584
50,794,303
38,810,570
Bills payable
249,648
280,665
223,973
Borrowings
2,581,884
2,894,759
5,147,036
Deposits & other accounts
45,384,411
36,981,351
26,285,794
Sub-ordinated loans
-
LIABILITIES
-
Liabilities against assets subject to finance -
-
lease
-
-
Deferred tax liabilities
-
-
Other liabilities
2,025,450
1,237,155
1,185,470
TOTAL LIABILITIES
50,241,393
41,393,930
32,848,273
5,004,001
5,004,001
5,004,001
NET ASSETS REPRESENTED BY
Share Capital
33
Reserves
640,009
548,039
435,342
Unappropriated profit /(accumulated loss) 419,959
52,079
(398,710)
Advance against shares subscription
3,224,000
3,224,000
224,000
Surplus on revaluation of assets
625,222
572,254
697,664
TOTAL REPRESENTED
9,913,191
9,400,373
5,962,297
 Source: i iNBP iannual ireport i2016, i2017, i2018.
 Table i4.2 i iPROFIT iAND iLOSS iACCOUNT i(INCOME
iSTATEMENT)
 For ithe iyear iending iJune i30

PROFIT iAND iLOSS

Rupees iin i‘000’

June
30, June
30, June
2018
2017
2016
Mark-up/return/interest earned
1,568,284
4,207,155
3,390,014
Mark-up/ return/ interest income
968,838
2,925,066
2,390,388
Net mark-up/ interest income
599,446
1,282,089
999,626
48,916
659,758
Reversal of provision against non- (15,411)
performing loans and advances-net
Provision for diminution in the value 27,610
(371,682)
of investments-net
Bad Debts written off directly
602,061
-
-
-
12,199
(322,766)
1,261,81
1,604,855
(262,193)
172,565
127,123
74,848
117,458
Net mark-up/ interest income after 587,247
provisions
NON
MARK-UP/
INTEREST
INCOME
Fee,
Commission
and
brokerage 63,857
income
Dividend income
46,947
34
30,
Income from dealing in foreign 11,061
currencies
Gain on sale of securities-net
8,548
30,761
3,371
(285,934)
67,148
1,431
(1,294)
Unrealized loss on revaluation of (15,666)
investments classified as held for
trading
Other income
21,845
66,006
69,896
Total non mark-up/ interest income
136,592
59,677
383,702
NET INCOME
723,839
1,664,532
121,509
Administrative expenses
353,181
943,680
719,453
Other provisions/ write offs
-
(5,705)
185,500
Other charges
8,884
13,416
15,326
Total non mark-up/ interest expenses
362,065
951,391
920,279
NET EXPENSES
361,774
713,141
(798,770)
713,141
(798,770)
NON
MARK-UP/
INTEREST
EXPENSES
PROFIT/
(LOSS)
BEFORE 361,774
TAXATION
Taxation
Current
(81,818)
89,631
75,292
Prior
-
2,040
-
Deferred
(100,266)
57,984
(236,879)
149,655
161,587
563,486
637,183
1.13
(1.27)
NET TAX
(182,084)
PROFIT/
LOSS)
AFTER 179,690
TAXATION
Earnings per share
0.36
 i i i i i iSource: i iNBP iannual ireport i2016, i2017, i2018.
35
Chapter 5
Summary Conclusion and Recommendation
5.1
Conclusion
National iBank iof iPakistan iwas iestablished ias ia isemi ipublic
icommercial ibank ion iNovember i8 i-1949. iThe iprimary iobjective iof ithe
isetting iof ithe ibank iwas ito ipurchase ijute ifrom ithe igrowers iin ithe iformer
iEast iPakistan iand ito iperform ithe icommercial ibanking ifunction iin ithe
icountry. iThe ibank ialso iauthorized ito iact ias ian iagent iof ithe iState iBank
iof iPakistan iand ioperate itreasury iwhere ithe istate ibank idoes inot ihave iits
iown ibranch.
The ibank iprovides iall itypes iof ibanking iservices ito ithe igovernment
iand iprivate isectors. iThe ioverseas ibranches iunder ia itrust ideed ithe ibank
ialso iprovides iservices ias itrustee ito inational iinvestment itrust iincluding isafe
icustody iof isecurities ion ibehalf iof iNIT iin iconsideration ifor iannual iservice
icharge iand icommission. i
National iBank iof iPakistan iis iplacing ihigh ipriority ion iautomation
iand iits idevelopment. iThe ibank iis ishifting iits ifocus iforma iroutine
ipersonnel iadministration ito ihuman iresources idevelopment, iwith idue
iemphasis ibeing iplaced ion ithe ioptimal iutilization iof iexisting ihuman
iresources. iMotivating ipay istructures iand ithe iperformance ibased ion
iincentives iwere ialso iintroduced ito ienhance ithe iproductivity iof iemployees.
National iBank iof iPakistan ibrought ia igreat irevolution ion iour
ibanking isystem iby iintroducing inew iproducts, iadopting iall ithe inew
imethods iand itechnologies irequired ifor ian iinternational ibank. iNational
iBank iof iPakistan iis idesired ito iplay ia ivital irole iin ithe idevelopment iof
iPakistan iin ithe i21st iCentury. iIts imanagement iand iworkers imust iaccept
ithe icompetition iand ichallenge iof ithe inew imillennium ithrough iinnovative
ipolicies, iproducts iand iuntiring iapplication. i
NBP’s istaff iis inot iwell itrained icomparatively. iHR iprocedures iare
iwell iplaced iin ithe ibooks ibut inot ibeing ipracticed ifully iNBP’s iHR
imanagement iis inot iworking igood. iNBP iis iutilizing ilarge iamount ion
36
iadministrative icost. iNBP’s iprocess iof isanctioning iadvances iis ilengthy.
iNBP’s icustomers ihanding iis inot iso igood, ibut ialmost ipoor. iNBP’s irecord
ion ipapers iis igreat, ibut iit ilacks ilatest ibanking itechniques iand itechnologies.
37
5.2 Recommendation
It iis istrongly irecommended ithat iN.B.P. ishould icomputerize iits ibraches i&
idevelop ia ipowerful icomputer inetwork ifor ion-line ibanking.
Govt. ishould itake ikeen iinterest ito irecover iits ibad idebts, iwhich ican
iimprove iits ifinancial iposition.
HRM idepartmentimust ihave ia iproper iplan ifor iplacement iof iemployees
NBP imust igive ithe iproper iattention itoward iincreasing ithe icustomization. iIt
ishould iestablish ia icustomer-oriented isection iin ieach ibranch ifor ireceiving ihim
irespectfully i& iprovide iproper iguidance
The itraining imust ialso ibe igiven ito ithe iclerical istaff. iBecause iof iN.B.P.
iare irunning ion imanual isystem iand ithe itraining iof iits istaff idirectly iimproving
itheir iefficiency iof iwork.
1
Working conditions imust be improved for ithe employees.
2
Upper imanagement ishould itake idecisions ifor ipromotion iof
iemployees ion ithe ibasis iof iprofessional ijustice.
3
Internal ipolitics i& ilobbies ishould ibe iminimized. i
4
There iis ialso ia ineed iof iproper irecruitment iand iselection iprogram. i
5
Political iinfluences ion ithe ibanking ioperations ishould ibe ieliminated.
6
The irecruitment ipolicy ishould ibe ifair iand itransparent.
7
Improving iCommunication iskill.
8
Aggressive imarketing istrategy iin ibanking.
9
Institutionalization iof ithe iHuman iResource iManagement
10
Research iand idevelopment ifacilities imust ibe iimproved
38
11
General iworking icondition iand iEnvironment imust ibe iimproved
12
New italent/Professionals ishould ibe ihired
13
Public iRelation idesk ishould ibe iestablished iin ieach iand ievery
ibranch.
14
NBP, ibeing ithe ionly ilending iarm ito ithe igovernment ifor ipublic
isector idevelopment ishould idesign, idevelop iand ideliver iproduct iand
iservices ifor ieconomic igrowth.
15
NBP imajor ifault iis ithat iwasn’t ikeeping iits ipace iwith ion igoing
ichanging iin ibanking iindustry iunlike iother ibank. iNow ithis ibank
icombining iall iit ipower iand itrying ito iapproach iother ibanks.
16
Latest ireorganizing iefforts iare inecessary ito imake iit icost ieffective
ialso imaking iits ifacility iaccordingly ito imodern ibanking. iThese imust
icontinue. i
17
Bank imanagement ihas ito iput iits iall ieffort ito ichange ithe iprevailing
iculture iof ithe ibank iand ito iput ithe ifoundation istone iof ibusiness
ioriented iculture. iIn iwhich iemployees igive iimportant ito ithe ibank
iand iits icustomer.
18
To iattract ithe icustomer iin ithe ifuture iNBP ihave ito imake iextensive
ieffort ito igive ifacilities iof iretail iand iconsumer ibanking. iPlus ithe
39
itechnology iin ithe ibanking iwhich iwill ibe inecessary ifor ifuture
ibanking iis ianother iweek iarea ineed ito ibe istressed.
19
The ioutlook iand iinterior ilay iout iof ithe ibranches iis ianother ithing
iwhich ineeds ito ibe iimproved.
20
The iprocedure iof itaking iservices ifrom ithe ibank imust ibe imade
ieasier iand istraight iforward inot iinvolving ilong idifficult iprocedure
ifor isimple itask.
21
To iremain iin ithe imarket ibank ineed ito ibe ivigilant iin ithe ieyes iof
icustomer. i iOne iway iis ithrough ipromotion iefforts, iso ithat ipeople
iaware iabout ihe iservices iof ithe ibanking iand iany iaddition iwhich ithe
ibank ias imade iin ithe iportfolio iof iits iservices. i i i i
40
REFERENCES i
en.wikipedia.org/wiki/Karachi_Stock_Exchange,financial-analysis/
Nasir, iM iSaeed.(1998).banking iof icurrency iand ifinance. iPakistan ikitab imarkaz
National iBank iof iPakistan, iAnnual ireport i(2017, i2018)
National iBank iof iPakistan, istatement iof iasset iand iliabilities, istatement iof iprofit
iand iloss i(2016, i2018)
Van iHorne, iJ. iC, iand iJ. iM. iWachowicz. i10th iEdition. i(1998). iFundamentals iof
iFinancial iManagement. iNew iYork: iPrentice-Hall iinternational, iInc
www.kse.com.pk/
www.nbp.com.pk i i
www.nbp.com.pk/BRNTWRK/DomesticBrLocator.aspx
www.onlinewbc.gov/docs/finance/fs.ratio/.
iHtmlhttp://www.nbp.com.pk/Publications/index.aspx
www.sbp.org.com
41