NBP

Asslam O Alikum
Remember Me In Ur Prayers
~*~AFAAQ~*~
MBA 3rd Finance Group
afaaq_tariq@Yahoo.com
Islamabad
When I joined the bank, I had no practical experience with regard

to working of a regular bank. Then I got an opportunity from the
university authorities to join and work with NBP to get experience of
the rules and regulations that bank follows.
I left the bank with a thirst to learn more. I seek a chance in order
to survive in a banking environment.
1
Page
This is only helping material. Please solve by yourself to clear your concepts.
www.weblyceum.com is not responsible for any mistake or any incompleteness.
ACKNOWLEDGEMENT
Praise to Almighty Allah, the Omnipresent, the Omnipotent, Who

bestowed upon me the potentially and ability to accomplish this work.
No sequence of works can express my sincere gratitude to our respected

Professor Fidah Hussain Bukhari without whose valuable guidance, rich
experiences, helpful advice, useful suggestions and constructive criticism and
comments. I could not have been able to complete this Internship Report.
I have honor to express my heart-full gratitude to the executive and staff

members of National Bank of Pakistan, Saman Abad Lahore, who kindly gave
them acceptance to the topic of my Internship Report along with many useful
suggestions which encouraged me to complete my work.
Thanks for all those who extend their cooperation for conducting the work of
“Business Internship”
-
----
2
Page
National Bank of Pakistan (NBP)
Vision
To be the pre-eminent financial institution in Pakistan and achieve market recognition
both in the quality and delivery of service as well as the range of product offering
Mission
To be recognized in the market place by Institutionalizing a merit & performance culture,
Creating a powerful & distinctive brand identity, Achieving top-tier financial
performance, and Adopting & living out our core values.this mission prepared bay ali
akbar zaidi khair pur mirs
History:
NBP was established under the National Bank of Pakistan Ordinance 1949 in
Pakistan. NBP occupies a unique position in the financial sector of Pakistan. It
acts as an agent of the Central Bank wherever the State Bank does not have its
own Branch. It also undertakes Government Treasury operations. The
National Bank of Pakistan is a Commercial Bank and transacts all types of
Banking Business. The National Bank of Pakistan was established on
November 29, 1949 as a semi public commercial bank.
The Bank has the distinction of acting agent of the State Bank of Pakistan and
operates treasuries where the State Bank of Pakistan does not have any office.
The Head Office of the Bank is at Karachi. Ever since its establishment in 1949
it has been leading Commercial Bank of the nation, sole agent of the
3
Page
Government of Pakistan‟s batter trade with countries and of State Bank of
Pakistan for the Government Treasury.
In Pakistan, the bank provides complete bank facilities to the people at over
1436 Branches operating even at the far lug Northern Areas. National Bank of
Pakistan is the first bank in the country to introduce and implement
supervised Ruler Credit Programmed help small farmer to obtain loans at his
doorsteps on easy terms and conditions. It has also played a pioneering role
in introduction of profit and loss sharing System (PLS) as a major towards
Islamization of economy.
NBP is 100% owned by the Government of Pakistan (GoP).
Branch Network:
NBP has an extensive domestic branch network of over 1500 branches located
all over Pakistan. The Bank also has a presence in 24 international locations
including the USA, United Kingdom, Europe and the Far East.
The Head Office of the Bank is at Karachi. Ever since its establishment in 1949
it has been leading Commercial Bank of the nation, sole agent of the
Government of Pakistan‟s batter trade with countries and of State Bank of
Pakistan for the Government Treasury.
In Pakistan, the bank provides complete bank facilities to the people at over
1436 Branches operating even at the far lug Northern Areas. National Bank of
Pakistan is the first bank in the country to introduce and implement
supervised Ruler Credit Programmed help small farmer to obtain loans at his
doorsteps on easy terms and conditions. It has also played a pioneering role
in introduction of profit and loss sharing System (PLS) as a major towards
4
Islamization of economy.
Page
The banks carry on its business through a wide network of branches locally
and internationally. These branches execute their function under the
supervision of local Regional Offices and regional offices are supervised by
the Head Office located a magnificent building in the heart of Karachi‟s
center.
It is now extending the operations of the Bank to all branches to Banking, to

commerce, to industry to trustee services as well as to agriculture and to the
need of the small or big businessman.
Organogram of Governing Bodies

In National Bank Of Pakistan
Board of Directors
President
Group Chief
Group Credit Group HR Group Compliance Group Credit

Management Chief Chief Administration
Chief Chief
At Regional Level
5
Regional Credit Regional HR Regional Compliance Incharge Credit

Page
Management Chief Chief Administration
Chief
Branch Manager Branch Operation Manager
ORGANIZATIONAL STRUCTURE
PRESIDENT
6
Page
DIRECTORS/ SEVPS
Provincial Chiefs/SEVPs
Regional Chief / EVP
Zonal Chief / SVP
Vice President
Assistant Vice President
Officer Grade-I, II, III
Clerical and non-clerical

staff
DEPARTMENT FUNCTIONING UNDER N.B.P
Departments in NBP:
 Account Opening Department

 Deposit Section
 Bills Remittance Department
 Clearing Department
7
 Cash Department
Page
 Credit Department
 Pension Section
 Issue of inland letter of credit
Cash Department
Cash Department is the most important section in the bank. It
performs the following three main functions:
1. Bank payments & receipts

Bank payments means cash payments to
those persons who represent cheques and bank receipts
includes cash deposits made by account holders.
2. Government receipts & payments

Government receipts means
collection of income tax, property tax, sales tax and traffic
challans. Government payments include salary payments to Govt
employees and Pension payments.
3. Collection of utility bills

It includes collection of all utility bills which
includes electricity , gas and water bills. It also includes ptcl
bills.
The following books are maintained in the cash department:-
1 ... ... Receiving Cashier Books

2 ... ... Token Book
3 ... ... Paying Cashier Book
4 ... ... Scroll Books
8
5 ... ... Cash Balance Book

Page
Clearing Department
All commercial banks are the members of the banker’s clearing
house which facilitates the settling of daily balances due between
member banks arising from the cheques and cash transactions
throughout the country, whether by the general public or individual
banks.
Clearing
is the transfer of funds from one branch of bank to the
other branch of the same bank or the other bank on which the
instrument is drawn, without involving the cash through state
bank’s clearing house.
Clearing house
is the place where both the debtors and creditors
are different commercial banks and they settle their claims.
There are two types of clearing:
Inward Clearing
It means cheques which are drawn on our bank but
are presented to the branch of another bank and on our branch but
with in the city. These cheques are handed over to NBP agent in
clearing house. Inward clearing results into outflow of cash.
Outward Clearing
It means the cheques of another bank, which are
presented on our branch by our customers. Outward clearing
results into inflow of cash from the payee bank.
TYPES OF CHEQUES COLLECTED

9
(1) TRANSFER CHEQUES

Page
Transfer cheques are those cheques which are collected and
paid by two different branches of the same bank situated in the
same city.
(2) CLEARING CHEQUES

Clearing Cheques are those cheques which are drawn on
the branches of some other bank of the same city or of the same
area which covers a particular clearing house.
(3) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on
the branches of either the same bank or of another bank, but
branches are not in the same city or they are not the members of
clearing house.
(4) TRANSFER CHEQUES

Transfer cheques are those cheques which are collected and
paid by two different branches of the same bank situated in the
same city.
10
(5) CLEARING CHEQUES

Page
Clearing Cheques are those cheques which are drawn on
the branches of some other bank of the same city or of the same
area which covers a particular clearing house.
(6) COLLECTION CHEQUES

Collection Cheques are those cheques which are drawn on the
branches of either the same bank or of another bank, but
branches are not in the same city or they are not the members of
clearing house.
Bills Remittance Department

‘Remittance’ means sending money from one place to another
place. So National Bank Of Pakistan provides number of services to
transfer money from one place to another place. These services
include Demand draft, Telegraphic transfer and Mail transfer. Bills
Remittance Department also works on Payment Orders and Short
Credit.
1. Demand Draft
Draft is an order to pay money, drawn by one
office of a bank upon another office of the same bank for a some of
money payable on demand. Drafts are commonly used to remit
money to parties both domestic and foreign. It is the cheapest way
to remit money over long distances. Demand draft is just like a
cheque which is drawn by one bank branch on another branch of
the same bank. The bank has a primary and direct liability to pay
drafts.
11
2. Telegraphic Transfer
Page
Telegraphic transfer (TT) happens or
activate when any client or account holder wants urgent payment to
its respective party, which is out of city premises. This TT is done
through fax and takes very less time.
3. Mail Transfer
Mail transfer is the inter city transfer of money
between two branches of a bank, through mail (currier). It is faster
mode of transfer money than demand draft.
4. Payment Orders
If the client or account holder wants to make
payment within the city, then this done through P.O. It can only be
cancelled with the consent of both parties.
1. For NBP Account Holder Rs. 50/- (Flat)

2. For NBP Non-Account Holder Rs. 100/- (Flat)
Rs. 25/- (Flat) from
student for payment
of fee favoring
educational
institution
b. Issuance of duplicate Pay order
1. For NBP Account Holder Rs. 100/- (Flat)
2. For NBP Non-Account Holder Rs. 150/- (Flat)
12
Page
5. Short Credit
Short Credit is also known as Inter- City transfer.
Bank receive cheques of other banks out side the city. Bank
transfer these cheques through inter city transfer.
Deposit Section
Deposits are referred to as the ‘LIFE_BLOOD’ of the bank. The
fundamental function of a commercial bank is the acceptance of
deposits. Banks accepts deposits from those who have surplus
money in their hands but they are unable to make use of it. When a
bank receives a deposit from customer, the relationship of debtor
and creditor established whereby a customer becomes the creditor
and the bank becomes debtor. The amount owned by the bank
must be payable to the depositor on demand or after some time.
Deposit Section in a bank deals with the acceptance of deposits and
payment of cheques.
LEDGERS OF DEPOSIT DEPARTMENT

The following types of ledgers are concerned with deposit
department:
1) Saving Ledgers
2) Current Ledgers
3) Profit and Loss Sharing Ledgers
4) Fixed Deposit Register
5) Cash Book
6) Daily Profit and Loss Summary Book
7) Voucher Register
13
Page
DIFFERENT TYPES OF ACCOUNTS OPERATED BY
NATIONAL BANK OF PAKISTAN
The bank accepts the following types of deposits.
1. Current deposits
2. PLS Saving deposits
3. Fixed deposits account (Time Deposit)
4. Foreign Currency Account
1. CURRENT DEPOSIT
For current deposits NBP open the account in the name of individual proprietary
firms, partnership firm, private limited companies clubs, association societies and
other institutions. The account can be operated by single or two more persons
jointly as the instructions may be given at the time of opening the account.
If the person who wants to open the account is not in position to sign or
signature is not firm or shaky the bank requires is photographs and he has to
come in the bank at the time of withdrawals of his deposits.
The initial amount of deposits with which he can open the account usual not be
less then Rs.1000/-

14
But this restriction is not imposed to the accounts of charitable institutions.

Page
2. PLS SAVING ACCOUNTS
The salient features or profit and loss sharing saving accounts to be
opened in NBP as under.
1. These accounts can be opened by individuals in their own single
are joint name. The PLS saving accounts can also be opened for
provident fund or other benevolent funds of companies, firms,
organizations of welfare and educational institutions.
2. PLS saving account can be opened with an minimum amount of Rs.
500/- only
3. Money can be with drawn form PLS saving account only through
cheque.
4. To share in the profit a minimum balance of Rs.500/- must be
maintained a account. The minimum balanced on sixth and last of
month will qualify for the profits.
5. The profit will be calculated on the basis of monthly minimum
balance for the period of six months i.e. from January to June and
15
July to December
Page
6. The head office of NBP determines the profits or loss on PLS saving
deposits and advice its branches the rate and time of distribution of
these profits concerned PLS saving account.
7. They shall be no restrictions on maintaining the maximum balance
in PLS saving account.
8. On the fist of Ramzan every year the Zakat 2.5% will be recovered
from the deposits on the balance of that day. But if depositors give
declaration of Zakat or he is non-mulsim no Zakat will be recovered
from him in the same day Zakat is not recovered from account in
which the balance are below upto prescribed limit as declared by
the administrator of Zakat Pakistan Act system of accepting
deposits has been stated in NBP since 01-01-1981.
3. PLS TERM DEPOSITS RECEIPT (PLS TDRS) OR FIXED DEPOSIT
A/C
In the case of fixed deposit account deposit is made for a fixed period
and a money deposited can be with drawn before the expiry of period fixed or
before giving an advance notice to the Bank. Fixed deposit caries a higher rate of
interest than the other type of bank account and the rate of interest rises with
the length of the period and the amount of deposit.

16
Page
One opening a fixed deposit account the bank grants to the depositor a fix
deposit (FDR) which is not transferable to any other person. When the depositor
with drawn the receipt must be handed back to the bank
The salient features of profit and loss sharing term deposit excepted by NBP are
given as under.The PLS term deposit are accepted from individual in their own
single or joint names, companies firms and other organization.
17
Page
1. The PLS term deposit receipt are issued for any amount. There is
minimum or maximum limit or deposits in a single term deposit account.
2. The term deposit can be made by tendering cash only.
3. Under term deposit scheme the depositors not cease to earn the profit
immediately, after the respective maturity date, but they have been
affording a liberal facility. In case the depositors said to with draw their
terms deposits on maturity their funds will remain temporarily in used and
on profit earned a responsible share would occur to such over due PLS
terms deposits at the rates declared on PLS sharing account.
4. The head office of the bank determine the profit or loss on PLS terms
deposit at by any one intervals i.e. the end of June and December each
year and payment of profit to or deduction of loss if any from the PLS
terms deposit is to be made the deposits for longer period will earn a little
more profit then those of shorter period deposits.
5. The total profit upto Rs.950/- is exempted from income tax
6. In the case of encashment before maturity but after completion of
months profit will be paid for the entire period for which the deposit
remained with bank at the rates payable for the respective period to the
PLS saving account after deduction of the Zakat if any.
7. In PLS term deposit expired and the depositors request with in one month
after the expiring date, for investment. The PLS terms deposit will be
18
Page
reinvested for the desire period from the date immediately following
expiring date.
8. Zakat or the face value PLS term deposit will be recovered as many times
as the valuation dates (i.e Ist Ramzan) falls between the date of issue and
the date of expiry of the deposit.
4. FOREIGN CURRENCY ACCOU
NBP has also introduced foreign currency accounts for Pakistan and
foreign Nation in Pakistan and abroad. This scheme assures its
customers on better profit and superior service.
1. It offers Pakistani or foreign National to operate a foreign currency A/C
with any one of their authorized branches spread all over the country.
2. Deposits of this accounts will be acceptable in all convertible currency but
account will be maintained on the customers choice in US Dollar, pounds
German Mark or Japanese Yen.
3. Deposits may be made in the forms of remittances in foreign currencies.
FOREIGN EXCHANGE DEPARTMENT
1). Imports
We sell our foreign exchange to the other country which is

called such as we purchase the foreign goods from the others. Import is done
19
through letter of credit (L/C) by the importer. Letter of Credit is an

undertaking given by the importer bank to the exporter’s bank.
Page
2). Export
Export is to sell our goods to the other country and earn foreign
exchange. The bank provide facilities of exporting the commodities to the
manufactures of the goods of the country.
3). Foreign Remittance
The bank provides the foreign remittance facilities to the

student studying aboard. Bank also provides foreign exchange in the shape
of travelers cheques to the intending visitors.
The NBP has over 1400 branches at home and abroad of these more than 100
branches are authorized and fully equipped to deal with all kinds of foreign
currency transactions.
NBP has worldwide network of branches and it has associated in Arabia bank, All
Jazria (26 branches) and national exchange company in UAE to facilitate the
customers in Pakistan, Saudi Arabia and UAE.
20
Page
GENERAL
BANKING
21
Page
Demand Draft
Draft is an order to pay money, drawn by one
office of a bank upon another office of the same bank for a some of
money payable on demand. Drafts are commonly used to remit
money to parties both domestic and foreign. It is the cheapest way
to remit money over long distances. Demand draft is just like a
cheque which is drawn by one bank branch on another branch of
the same bank. The bank has a primary and direct liability to pay
drafts.
PROCEDURE OF ISSUANCE OF DEMAND DRAFT
 Bank receive a written request from a customer to issue a

demand draft on bank’s standard form.
 Amount of DD & exchange has to be deposited by the
customer either in form of cash or cheque.
 Amount of exchange is as per bank’s schedule of charges.
Minimum amount is Rs. 50/- and 10 paisa per thousand upto
Rs.100000/- AND Minimum Rs.100/- & 5 paisa per thousand
on amount of DD more than Rs.100000/-
 Now we issue DD with due care, all details are clearly
mentioned on it. DD # mentioned on application form. After
signed by officer it handed over to customer after taking his
signatures on back of the application form.
 After issuance of DD we make DD Advice(F-120). Recording is
made two registers one is DD issue register and other is DD
advice issue register covering all details like date, applicant
name, person in whom favor DD is drawn and addressed
branch of NBP.
 Now we fill fanfold (F-15) Both debit & credit voucher signed
by officer and send debit voucher and DD advice to respected
22
branch through NIFT. Credit voucher and application form is

remains with the branch.
Page
 We pass entry as
Cash Account (amount of DD + exchange)
NBP General Account
Exchange Account
Telegraphic Transfer
Telegraphic transfer (TT) happens or
activate when any client or account holder wants urgent payment to
its respective party, which is out of city premises. This TT is done
through fax and takes very less time.
PROCEDURE OF ISSUANCE OF MAIL TRANSFER

Mail Transfer on bank’s standard form.
 Amount of MT & exchange has to be deposited by the
customer either in form of cash or cheque. Bank receive Rs.
75/- over and above the amount of exchange in DD.
 Now we issue MT with due care, all details are clearly
mentioned on it. MT # mentioned on application form.
 When MT is issued the issuing bank send debit voucher(F-15)
and original MT document to NBP branch in whom favor MT is
drawn.
 After issuance of MT we record it into DD,MT,TT issue
register.
 On receipt of MT from any branch officer check the authorized
signature of the officer who issue in NBP secret employee
code book. This helps him to verify the authenticity of MT.
Mail Transfer
Mail transfer is the inter_city transfer of money
between two branches of a bank, through mail (currier). It is faster
mode of transfer money than demand draft.
PROCEDURE OF ISSUANCE OF PAYMENT ORDER

23
payment order on bank’s standard form.

Page
 Amount of PO & exchange has to be deposited by the
customer in form of cash. Amount of exchange is as per
bank’s schedule of charges.
 After Submission of cash we issue a Payment Order after
filling all particulars of PO. Payment order number must be
written on the application form for recording purposes.
 Payment order is handed over to the customer after taking
signature of a customer at the back of the part of PO in
payment order book.
SECURITIES
IN
NBP
24
Page
Securities
(1) BANKERS’ LIEN
(Moveable property possessed to the lender cannot be sold in case of default)
Lien is the bankers‟ right to hold the property until the claim on the
property is paid. The bankers look at their lien as a protection against loss on
loan or overdraft or any other credit facility. In ordinary lien, the borrower
remains the owner if the property, but the actual or constructive possession
remains with the creditors, though he has no right to sell it.
(2) GUARANTEES
When an application for an advance can offer any tangible security, the
banker may rely on personal guarantees to protect himself against loss on
advances or overdraft to the applicant.
(3) MORTGAGE
(Immoveable property possessed to the lender can be sold in case of default)
A mortgage is the transfer of an interest in specific immoveable
property for the purpose of securing the payment of money advanced or to be
25
advanced by way of loan, and existing of future debt, or the performance of

Page
an engagement, which may rise to a particular liability. The person in whose
interest the property is transfer is called mortgagee.
(4) HYPOTHICATION
When property in the shape of goods is charged as security for a loan
from the bank, the ownership and possession is with the borrower, the goods
are said to be hypothicated. The essence of hypothecation is that neither the
property in goods nor the possession of them passes to the lender, but the
security is granted by means of letter of hypothecation which usually
provides for a banker‟s charge on the hypothecated goods.
(5) PLEDGE
In a pledge, the ownership remains with pledger (borrower), but the pledgee has
the possession of property until the advance is repaid in full. While in case of
defaulter, the pledge has the right of sale after giving due notice.
PRODUCTS
26
Page
In
National Bank Of Pakistan
NBP SERVICES
National Bank of Pakistan is at the forefront of international banking in
Pakistan which is proven by the fact that NBP has its branches in all of
the major financial capitals of the world. Additionally, we have recently
set up the Financial Institution Wing, which is placed under the Risk
Management Group. The role of the Financial Institution Wing is :-
 To effectively manage NBP‟s exposure to foreign and domestic

correspondence
 Manage the monetary aspect of NBP‟s relationship with the
correspondents to support trade, treasury and other key business
areas, thereby contributing to the bank‟s profitability
 Generation of incremental trade-finance business and revenues
27
NBP offers
Page
The lowest rates on exports and other international banking products
Access to different local commercial banks in international

banking
Monthly Income Scheme

 Minimum deposit of Rs. 50,000 and a maximum deposit of Rs.
5,000,000 for 5 years
 Free Demand Draft, Pay Order and NBP Online Aasan Banking*
 Free Cheque Book / NBP Cash Card (ATM + Debit)
 It is PLS Saving Account Minimum saving balance of Rs. 20001

& maximum balance of Rs.300000.
 free NBP cash card(ATM+debit)
 convenience of NBP Online Asan Banking
 two debit withdrawls allow in a month.
 Profit calculated monthly and paid on half yearly basis.
28
Page
n eNBP
STUDENT
LOAN
SCHEME
29
Page
Student Loan eNBP STUDENT LOAN SCHEME
Pursuant to the announcement made by the Federal Finance Minister in his 2001-
2002 budget speech, a STUDENTS LOAN SCHEME (SLS) for Education was
launched by the Government of Pakistan in collaboration with major commercial
banks of Pakistan (NBP, HBL, UBL, MCB and ABL). Under the Scheme, financial
assistance is provided by way of Interest Free Loans to the meritorious students
who have financial constraints for pursuing their studies in Scientific, Technical
and Professional education within Pakistan.
30
Page
The Scheme is being administered by a high powered committee comprising
Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks
and Deputy Secretary, Ministry of Finance, Government of Pakistan.
ELIGIBILITY
Under the scheme the students are eligible to apply for loans provided:
1. He/she has obtained admission on merit in the approved universities/

colleges of the public sector mentioned hereunder.
2. he/she falls at the time of admission within the age bracket of:-
For Graduation Not exceeding 20 Years

For Post-Graduation Not exceeding 30 Years
For Ph.D Not exceeding 35 Years
3. He/she has secured 70% marks in the last public examination

4. he/she has undertaken the study of the subject given below
5. he/she is unable to pursue studies due to financial constraints.
TYPES OF LOAN
The loan facility will be available for entire duration of the study for:-
Schedule Fee Paid directly to the

Boarding expenses excluding meal charges
Procurement of textbooks--- Disbursed directly to the student
REPAYMENT
The maximum period of repayment of loan is 10-Years from the date of

disbursement of first installment .The borrower shall repay the loan in monthly
installment after six months from the date of first employment or one year from
the date of completion of studies, which ever is earlier.
Under the Scheme, loans are available in the following subjects.

31
i) Engineering
ii) Electronics
Page
iii) Oil Gas & Petro-Chemical Technology
iv) Agriculture
i) Medicine
ii) Physics
iii) Chemistry
iv) Biology,
v) Molecular Biology & Genetics
ix) Mathematics
x) Other Natural Sciences
xi) DAWA and Islamic Jurisprudence
xii) Computer Science/Information
System and Technology including hardware.
xiii) Economics, Statistics and Econometrics Sciences
xiv) Business Management
xv) Commerce
OTHER INFORMATION
 Applicatio form are available from the designated branches

 The students desirous of availing loan under the Scheme may apply on
prescribed form for financial assistance subject to he or she has got
admission on merit through normal procedure in the Universities/
Colleges afore-mentioned.
 Applicants are required to submit/send their applications on the
prescribed form, duly completed in all respect, to the designated branches
indicated against each University/College by the given date. Incomplete
application is not be entertained.
 Students who have availed this facility in the last / previous year(s) need
not to apply.
Schem eNBP SAIBAN

32
Page
Product Items
 Home Finance
Home Renovation
 Home Construction
Purchase of Land + Construction
 Balance Transfer Facility (BTF)
Eligibility
 Must be Pakistani Resident (National)

 Aged between 21 and 65 years at the time of application/disbursement of
loan.
 Salaried Person, Self-employed professionals and businessmen.
 Property located in NBP approved localities.
Service duration: Two years for salaried class Three years for self-
employed/business class.
Required Documents
With Applications Form
• Two attested passport size photographs

• Two attested copies of your National Identity Card
• Cheque for the processing charges
33
Page
Property Documents
Any title document available (other documents may be required)
1) FOR SALARIED PERSONS, WHOSE SALARIES ARE DISBURSED

THROUGH NBP BRANCH
• Employer Undertaking for remittance of salary at relevant NBP branch for

credit to customer‟s account (to be provided at a later stage, format available at
relevant branch)
• Employee ID Copy attested by NBP Branch (where applicable)
• Attested copies of last three (3) months salary slips
• Attested copies of last three (3) months bank statements
2) FOR SALARIED PERSONS OF MNCs AND NBP APPROVED COMPANIES
• Employer Undertaking duly attested by relevant NBP Branch, where

applicable (to be provided at a later stage, format available at relevant branch)
• Attested copies of last three (3) months Salary Slips
• Letter of Verification of Employment on Company Letterhead mentioning the
date of joining
• Attested copies of last three (3) months bank statements
3) FOR OTHER SALARIED PERSONS
• Letter of Verification of Employment on Company Letterhead mentioning the

date of joining
• Attested copies of last three (3) months Salary Slips
• Attested copies of last twelve (12) months bank statements
• Attested copies of last three (3) months paid bills for electricity and telephone
OR copies of last (12) twelve months credit card bills (which ever is available)
34
4) FOR BUSINESS PERSONS

Page
• Bank Certificate stating applicant maintaining Business Account and the date
of account opening
• Attested copy of latest Form 29 in case of Private or Public Limited Company
• Attested copy of Partnership Deed (where applicable)
• Attested copy of current professional association membership/practicing

certificate. Adequate proof of professional engagement like bank certificates
• Attested copy of Partnership Deed (where applicable)
35
Page
ACCOUNTING
PROCEDURES
TO BE
FOLLOWED BY
NBP
36
Page
SUSPENSE/SUNDRY DEPOSITS ACCOUNTS AND OTHER
SUNDRY LIABILITY ACCOUNT
 Under bylaw 6(b) of the banks byelaws not more than two suspense
accounts(I-e accounts in which items, which cannot be passed at once into
their proper accounts are in the meantime debited or credited) shall be kept
at any controlling office or branch. The only accounts of this nature
allowed are,therefore,suspense account for debit item held in suspense ,and
sundry deposits accounts for credit items. the former being a general ledger
account and the latter a current account
.
 The sundry deposit account is subdivided into two categories namel;y,:Other
Sundry Liability Account: and :Sundry Deposit Account:. In other words
Liability account only items other than deposits would be entered. The
balance outstanding in these two accounts at the close of each week shall be
reported in the scheduled telegram against the existing codes I-e
Sundry deposit account N109B and other sundry liabilities account N113b.A
subsidiary register B-12 on the pattern of the sundry deposits account register
shall be maintained as other sundry liability register. Entries are however, not
to be made in these accounts in regular course of business, but only in cases
when due to some reasons ,the amount could not immediately be credited to
their proper accounts. Such entries would be of temporary nature. Amounts
temporarily credited to sundry deposits accounts/other sundry liability account
are to be reversed at the earliest moment so that outstanding is cleared undue
delay.
Adjusting accounts
37
Page
Expenses payable but not paid; The entries passed under different heads of
charges are on reversal, individually carried ouyt in the general ledger are
subsequently when the relative bills on receipts are sanctioned for payment
by competent authority, shall be paid by debit to other sundry liability account
.Whenever it is felt that bills under a particular head for which provision has
been made at the end of the year have been paid and the amount provided
for was in excess of the requirement ,the balance should be credited to the
charges account.
All vouchers on suspense accou=nts and all debits to sundry deposits

account must be signed by the operations manager singly up to the amount of
Rs 5000/- for cash and Rs 10000/- for transfer ,and jointly with his second
officers for amounts exceeding theses limits.Other supervising officials at the
managers discretion may pass credit entries in sundry deposit account.The
recipients of the money must properly receipt all debit vouchers for cash
payments and on transfer debits particulars of disposal must be recorded.
Full particulars of all orignal items will be entered in the suspense account or
sundry deposits account register B-11 or B-12 as the case may be.When
entries in these accounts are reversed ,the dates of the reversing entries
must be entered against the orignal items and initialed by the manager .Full
particulars of reversing entries vmust be written on the vouchrs but need not
be entered in the registers, the words entry reversed and the date of the
orignal items being sufficient.
All branches where there are only a few entries in the sundry deposits
account, a sundry deposit account register may be dispensed with provided
all reversing entries are passed by the manager in the ledger account,in
which full particulars of original items must be written,the dates of all contra
items entered and each individual entry initialed.When sundry deposits
account register is maintained only the daily debit and credit total be posted in
the ledger account.
Temporary running finance must not be debited to yhe suspense account

.Refer to the temporary running finance instructions.
Suspense account for meeting entertainment expenses which are paid strictly
reimbursed basis advance payment in respect of rent of branch premises as
well as rent ceiling provided to the banks; officers (should be debited to the
general ledger head prepaid rent account),advance deposits made to the post
offices,telegraph,electric supply companies gas supply companiesetc,(should
be debited to general ledgere head advance deposit accounts) and expenses
of law charges,stamp fees and expenditure incurred in respect of borrowers
38
cases in courts (should be debited to respective subheads of charges

accounts)
Page
Sundry deposits accopunts should be used only for items ,and the entries
therein must be kept to a minimum .Bills proceeds received late in the day
should ordinarily be credited to proper accounts even if it is too late to
dispatch the relative advice the same day and the amounts for which
payment orders have to be issued should be credited direct to the payment
orders account.
On the last working day of each month except December branches will
forward a detailed staement on form F-47 of all items outstanding in
suspense account at the beginning of the month and all entries ,debit and
credit ,passed during the month to their concerned office.
A detailed statement on form F-48 of all items outstanding for over 6 months
in sme deposits account will be forwarded to the controlling office at the end
of each month except December.Aggregates of the remaining items should
however be added to the total of the detailed items so that the ultimate total
agrees with the balance.Annually on the 29 th june or the previous working day
,if that day is a holiday ,amounts outstanding in sundry deposits account for
more than three years will be transferred to an office account
Managers must see that all outstanding in suspense account and sundry
deposits accounts clreaed as soon as possible,and will therefore ,personally
check the outstanding amounts atleast once in a week.
Entries made in suspense account on account of tax at source advanced paid
receivable advance expenses on new branches ,advance rent payment ,legal
expenses,mark up/service charges recovered,Qard- e – hassana for marrige
may be classified as other assets .
39
Page
HUMAN RESOURCR POLICIES
AT
NATIONAL BANK
OF
40
PAKISTAN
Page
HUMAN RESOUCE POLICIES AT NATIONAL BANK OF PAKISTAN
1- RECRUITMENT POLICIES AND PROCEDURES;
In NBP recruitment is done purly on merit.An organizational wide culture of

meritocracy is found in NBP.Recruitment is done centrally or locally both and it
hire employees from two sources
o Internal hiring
o External hiring
Internal hiring is the most economical way of hiring employees it uses minimum
resources and efforts to get required workforce within the organization.Data is
obtained from the database of NBP maintained at head office in Karachi.
While external hiring is resorted in such a situation when its difficult to find out
required workforce from within the organization ,it involves a plenty of time and
41
considerable amount of resources.NBP follows both the ways depending on the

circumstances.
Page
.As main Human Resource Department is in Karachi so normally hiring is done
from Karachi HRD.A database has been maintained over there in which a pool has
been created out of which short listed candidates are supposed to appear in the
written test(arranged at different cities at convenient and easily accessible places of
main cities I-e Karachi,Islamaabad,Lahore,Queeta) and after that successful
candidates are required to go through interviews (Panel interviews). Selected
candidates are then appointed to the posts and are assigned their respective duties
EMPLOYEE ORIENTING
It is a procedure for providing new employees with basic background information

about the organization. So all new employees are provided information about the
working environment, working hours and vacations.It may be an informal
introduction or a lengthy formal courses.NBP always exibits a warm and
cooperative attitude towards new employees and welcomes them.
SOME OTHER WAYS OF RECRUITMENT ADOPTED BY NBP

.NBP also follows many other ways of recruitment they are not always alternative
to one another rather most of the time these are complementary to each other .Here
are some of them ;
i) College recruitment
ii) On site visits
iii) Referrals and walk ins
iv) Recruitment via internet

42
Page
INTERNSHIPS
NBP also offers internships to the students and fresh graduates in all its branches.A
complete procedure is observed to allow people to intern in NBP.A formal request is
made by the internee which is approved by head office .A secrecy bond is signed by
the internee in which internee undertakes that he/she will not misuse any
information obtained from the records ,he wll obey bank rules and regulations ,will
not divulge and information about the bank or its clients,staff members,will not
obtain any benefit from the information which may come within his/her knowledge
during the course of training in NBP.The entire transaction and information will
be kept by as strictly confidential.
PAY PACKAGE,BONUSES AND REWARDING CRITERIA

NBP is an Equal Opportunity Employer meaning thereby that it offers its employees
absolutely competitive pay structure including other fringe benefits like house
loan,car loan,marriage loan and bouses as well.NBP announces two bonuses each
year one at the half year closing I-e 30 th june and second one at the end of
calender year I-e 31st December.Besides these bonuses NBP also disburse two EID
BONUS at both eids and including all theses sometimes during a year SURPRISE
BONUS is also awarded to its employees ,hence NBP motivates and appreciate
positive contribution made by its employees ,NBP apprise and evaluate output of its
employees and pay them reward and in case of any undesirable outcome it punishes
its employees as well. This practice helps to maintain the morale of the employees
high and to inculcate a feeling of check in their minds as they know that their work
is going to be rewarded or punished so they make their efforts accordingly.
TRAINING AND DEVELOPMENT OF THE EMPLOYEES;

A continuous process of training and development of its employees is the tradition
43
of NBP. Its employees have to undergo a training process.This traning is of both

Page
types;
i. On the job training
ii. Off the job training
On the job training means training a person while he is working on it.Different

techniques are used for thisw purpose like;
1. Job rotation
2. Job enlargement
3. Job enrichment
4. Action learning
Job rotation means NBP moves a trainee from department to department to broaden
his/her experience and identify strong and weak points.While job enlargement and job
enrichment techniques are used by NBP by giving extra tasks to be performed by the
employee and hence learning through doing different tasks.On the other hand NBP uses
action learning is used to train employees by allowing them to work full time analyzing and
solving problems in other departments.
Besides this training other refresher courses are also arranged to impart latest knowledge
and modern practices to its employees in order to make them up to the date.
44
Page
SWOT ANALYSIS
SWOT ANALYSIS
An analysis indicating towards organization strengths, weaknesses,

opportunities and threats is termed as SWOT Analysis”. Such an
analysis is very important for the management in retaining the
strength, overcoming the weaknesses, capitalizing over the emerging
market opportunities, and craving ways to successful tackle with the
45
threats and ultimately converting them in the strengths for the

Page
organization
During eight weeks of my stay, I have come across the following
SWOT analysis of the bank
STRENGTHS
Strengths are those activities the organization does well or the unique
resources that it has. The strengths of SPCBL are given as follows:
 The Keeping Of A Good And Modest Environment During

Business Hours.
 The bank has a good team of customer relation managers and
customer relation officers to help the people.
 Systematic working operations.
 The credit administration department enjoys a staff of very good
business executives who attract and analyze people in a very
good manner.
 A good dressing of employees and their attitude towards the
people
 A Good System Of Communication Flow Is There
 The Keeping Of A Good And Modest Environment During
Business Hours.
 The Commitment Of Employees Towards Secrecy.
WEAKNESSES
 The internal issues include certain weaknesses which are

discussed below:
 There Is Lack Of Proper Advertising.
 Higher Charges of Some Services As Compared To Some Other
Banks.
 All Branches are not On Line
 No ATM facility available
 Employee’s turnover is higher.
 All Branches are not dealing in foreign exchange.
46
OPPURTUNITIES
Page
 Stronger and deeper relationships with existing and potential
customers.
 Cross selling of other Union Bank Products.
 Committed employees due to payment of higher salaries.
 Government patronage
 A good job recruitment policy of hiring business graduates.
THREATS
 Pakistan Is A Developing Country And Our Debt-Burdened Economy
Is A Major Threat For The Banking Business.
 High probability of competitive reaction
 Foreign banks may increase marketing support and aggressive
sales drive.
 Launch of similar products by large nationalizes banks with
extensive distribution network.
 Political Condition
 The Employee Turnover Can Create A Serious Problem For The
Bank.
Problems faced by the Bank

I have done my internship in National Bank Of Pakistan, During
the course of my internship I observed some deficiencies in the
banking operations. Some dilemmas faces by bank is as follows:
 NBP still following the old methods and techniques which are
not up to the mark. Most of the work done manually which is
not reliable in future. Computer facility is not available.
 All branches of national bank of Pakistan are not online, which

badly affect the operations of bank branches.
 There is lot of burden of work on bank staff. One person

handles many things, which affect the efficiency of that
47
person.
Page
 Overall timings of entrance into the office for the employees
are very strict but there is no time for them to leave the office
and no over time is paid to them which may be a significant
reason of dissatisfaction for their jobs.
 During my internship I realize that bank needs young and

experienced new staff to meet technology and global
challenges.
 Many of National bank customers are illiterate and retired

servants so bank officers face much difficulty in handling
them.
 No proper customer services department is available in the

branch. There is no information counter in the bank, so
customer also face difficulty regarding financial matters.
 Deficiency in adopting new standards of marketing to strive in

this competitive era.
 Job rotation is very important for sound environment and

communication purposes but there is lack of job rotation in
the bank.
 I also observed some social problems with women workers in

the bank.
 Internship programme of National Bank Of Pakistan is not

satisfactory.
 The behavior of staff towards internee is not well. They do not

tell enough to the internees about typical banking operations.
 Staff working in the bank is not properly trained according to

the modern banking requirements. they are usually old age
and working from longer period of time.
 There is no satisfactory training system of existing

employees.
48
 Recruitment policies of the bank is very tough which does not

Page
motivate young and fresh graduates to serve bank.
 The research cell should be formulated and it should
continuously try to gather information about the present actions
of its competitors and the expected future actions. So in this
way more effective strategies can be formulated.
 Bank is a service industry; people normally prefer those

banks where they feel comfort and get best of the services,
so such strategies should be adopted by which the services
enhanced and attract more customers. NBP should give
proper attention on staff training and should provide the
facility not only in Pakistan but also in abroad. Every year
some of the employees should be sent for training to other
countries.
 Different training programs should be arranged for On the Job

employees so that they can work according to the global
requirements of modern banking.
 All the branches of NBP should be Online so that there is no

delay of services to the customers.
 Bank should take reasonable steps to improve consumer

banking.
 The world has become now a global village. So NBP must

chalk out its global customers and their needs. Bank policy
should be designed to satisfy not only local customers but
also helpful for outsiders. Bank policies
 All departments in the bank should be computerized so that

officers can save time and make their jobs easier.
 Bank should recruit new persons for better management.

They must be trained and use to with new technology needs.
 Bank should appreciate female workers at high level

management.
49
Page
 Managers and other top level employees should adopt proper
strategy to minimize communication gap among staff
members.
 Bank should formulate an attractive internship program to

motivate new generation.
 In order to increase the performance of employees

management should evaluate employee’s performance and
give extra incentives to them
50
Page
FINANCIAL HIGHLIGHTS OF NBP SAMANABAD BRANCK
Current Account Balance 24711639.74
PLS Saving Account 263572098.22
Interest Account Balance 7846915.09
Demand Finance Account 15377268
Debt Total 113019527.51
Advance Salary Debit 3704034.62
Small Finance Account Debit 20946400.89
Payment Order Account 987072
DD Account 62987.50
Saving Rate 1.2%semi annually
MIS (monthly income scheme) 3.3%
Premium savor 7.2%

51
Page
Total Branch Deposit 300M
Work Done By Me
In NBP I worked in following departments;
 Account Opening
 Credit/Advances
 Pension
 Accounts
My primary focus in 6 weeks duration was on Credit/Advances department. I spend most

of my internship period in that department. I worked for “President Rozgar Scheme” and
used to deal with customers who come there to take advantage from this scheme. Different
people used to come there who were unemployed and want to start their new and
personal business. From this department I learn that a banker must;
 Know how to deal with customers

 Know how to convince & satisfy them
 Have knowledge about the product
 Be very confident before his/her client
52
Page
53
Page
Account Opening Department
The opening of an account is the establishment of the banker customer
relationship. By opening an account at a bank a person becomes a „customer‟ of
the bank.
Account Opening at NBP

As the opening of an account is of crucial importance for a bank, great care
should be taken in this matter. NBP has specified the rules and procedure for
opening on account which are strictly abide by all its branches.
Responsibilities of Account Opening Department

54
 Account opening
Page
 Documentation at the time of opening of an account
 Issue cheque book
 Closure of an account
Account opening
Whenever a new customer enters in the bank with the intention to open an
account, the banker is required to determine his/her category according to his
status and needs. NBP has following categories of accounts:
 Individual Account
 Joint Account
 Minor Account
 Sole proprietor Account
 Partnership Account
 Company Accounts
 Accounts of the Welfare/ Societies/Clubs/ NGOs
Documentation:
 Each one of these account has different requirements with regard to the
documentation. But the documents which are common in all these
categories are:
 Computerized National Identity Card (CNIC) of the applicant
 Introducer - the person should be the account holder of the NBP (same or
any branch) from last six month and maintaining his/ her account
regularly.
Individual Account
55
This category is further bifurcated into following sub-categories:

Page
 Business Account
 Student Account
 Salaried Person
 Household Women
All these persons are required to fill the same account opening form. The only
difference comes in case of the supporting documents.
In case of the business account the great care should be taken in inquiring the
source of the income. The business proof of the customer is required in shape of
the visiting card or the letter head.
In case of the student account the college card and the bonafide certificate from
the institution is demanded by the bank.
For salaried person employment proof is asked at the time of opening an
account. The salaried person is required to provide Appointment Letter so that
the banker can know about the joining date, salary and designation of the
potential customer.
While opening the account of household women the routine documentation is
done. But the important thing to inquire and consider is that what will be the
source of the transaction in this particular account. The banker should be
prudent enough to see and point out any unusual volume or number of
transaction in this account.
Joint Account
Any number of persons can open a joint account. There is no limit on the
maximum number of the persons in a joint account. Every person is required to
fulfill the same requirement as mentioned under the head of the individual
56
account in the personal capacity.

Page
Sole Proprietor Account
 NTN No. – which should clearly mention the business name, client name
and address of the business place
 Request for the account opening on the Letter head of the business
 Business stamp
Partnership Account
 NIC of all partners

 Partnership deed attested by the Notary Public
 NTN certificate
 Form- C (if partnership is registered)
 Rubber stamp according to following format.
Business Name
Partner
Company Accounts
 NIC‟s of all the directors
 Rubber stamp according to their designation
 List of director attested by chief executive
 Resolution of the board of director to open bank account (on bank format)
 Form 29 duly attested by SECP:
 This certificate contains the details of directors and officers including
Chief Executive, Managing Agent, Secretary, Chief Accountant and
Auditors and Legal Advisor.
 Article of Association(AOA) / Memorandum of Association(MOA)
57
 NTN
Page
 Certificate of incorporation
 All the above documents should be sealed and signed (with stamp) by
company secretary.
Minor Account
 CNIC of Guardian
 Business/ Employment Proof of Guardian
 Bay Form/ Birth Certificate duly original seen by Attorney holder
 Date of majority of the minor should be mentioned on AOF & SSC
 Only personal information of guardian on AOF. No information of minor
on AOF.
 No signature of minor on account opening documents
 Title of account should
 Minor Name (M)/ Guardian Name (G)
 (M=Minor, G= Guardian)
 Stamp affixed on Account opening form and signature specimen card.
GUARDIAN WILL OPERATE THE ACCOUNT EVEN IF MINOR
ATTAINS MAJORITY.
Guardian can operate the account after majority of the minor as mentioned in
the stamp.
Accounts of the Welfare/ Societies/Clubs/ NGOs

 Resolution (Name & signature of authorized signatories along with CNIC
numbers and operating instructions)
58
 CNIC
Page
 By- laws
 Registration certificate
 List of governing bodies
 Legal opinion
 Approval form Area Manager and System Operations.
Types of Accounts
NBP is offering different types of accounts which are designed considering
the needs of different types of customer. The different entities discussed
above can open any of the following account:
CURRENT ACCOUNT
It is the most demanded account in any bank. Individual partners, companies

associations, clubs, societies, and NGOs are eligible to open current account.
Here are some features of the current account offered at NBP
 Non interest bearing checking account.
 Minimum account opening requirement of Rs.10, 000 only.
 Free debit card can be used to withdraw cash and make purchases at
thousands of outlets across Pakistan.
 This account can be opened in foreign currencies also.
 No restriction on number of withdrawals and on number of deposits
59
 Minimum average balance Rs.10,000/-

Page
 Rs.100 will be deducted in case of balance maintained below the
minimum limit of deposit.
 No Zakat deduction.
PLS SAVINGS ACCOUNT
This account helps the customer to earn a handsome amount on their saving.
Any one or more individuals or partners can open a PLS saving account with
the Bank.
 Profit & Loss Sharing Saving Bank Account.
 Minimum account opening requirement of Rs.5, 000 only.
 No restriction on number of withdrawals and number of deposits.
 Profit on PLS saving account is calculated on minimum monthly
balance basis.
 Profit on saving accounts is credited to the customer account on half-
yearly basis.
 Profit rates are subject to charge in response to change in the return
earned by the Bank on deployment of funds.
 Free debit card can be used to withdraw cash and make purchases at
thousands of outlets across Pakistan which provides access to funds 24
hours a day.
 The charges for maintaining the minimum balance in the account are
Rs.50 per month.
 Saving account can be opened in other currencies also i.e. in Euro,
Pound Sterling, U.S Dollar etc.
 Zakat is deductible on balance in this account otherwise an affidavit is
provided by the customer.
60
Page
Procedure of Account Opening
A. Account Opening Form
The first step in the procedure of opening an account is the filling of Account
Opening form. At NBP the account opening form is titled as the Relationship
Contract. This relationship contract becomes the binding for both the banker
and customer. It contains all the requisite information needed to open and
operate an account according to the specified rules and regulations.
Contents of Account Opening form
The following details are required to furnish the Relationship Contract.
1. TITLE OF ACCOUNT:
It is the name through which the customer is intended to operate an account.
2. ACCOUNT NUMBER:
It is the serial number given to each account at the time of opening an

account. This is the number through which an account is accessed whenever
it is needed.
This serial number starts from a Code, which is different for different types of
accounts. These codes help the banker to identify type of an account an
account at first sight.
61
The following is the list of codes for different types of account used at NBP.
Page
 Current Account
 Saving Account
 Royal Profit Account
 BBA Account
 USD Account
 Euro Account
 Pound Sterling Account
3. PERSONAL INFORMATION
After giving the title to the account, the personal information of the customer
is written down in the Account Opening form, like Name, Father‟s name,
Mother‟s name, Employment information (Address of employer, Name of
employer, job title) in case of a salaried person, NIC #, Nationality,
Residential Address, Phone number etc.
In case of joint account the personal information of each account-holder is
taken.
4. NEXT OF KIN
Mention Name & address of person/next of kin to be contacted for

ascertaining consumer‟s whereabouts after the expiry of three years from the
date of last operation in his account, to inform him/her of the existence of his
account when customer were not available at the given date.
5. ADDRESS FOR THE CORRESPPONDECE
Address of the customer is needed to contact the customer.

62
6. CORPORATE ACCOUNT
Page
In case of company account the additional information regarding the address
of the Head office and Date and Place of the incorporation is required.
7. TYPE OF ENTITY that either the applicant falls under the category of
individual, sole proprietor or company etc.
9. NATURE OF THE ACCOUNT

10. for example current account.
9. CURRENCY OF ACCOUNT
Customer has to mention the currency, in which he is going to operate.
10. DETAILS OF THE TERM, NOTICE & CALL DEPOSIT

It includes No. of receipt, Amount, Period of the deposit.
11. ZKAT DEDUCTION INSTRUCTION
12. INSTRUCTION FOR OPERATION OF ACCOUNT
Under this head the applicant specify that how he/ she will operate the
account. If applicant is individual then he will select the option of „Single‟ but
in case of a joint account the customers have to make choice among the
options of the „Joint‟ and „Either or Survivor‟ which means that any of the
joint account holder can operate the account. The option of „Any one of‟
meant for the Partnership Account.
63
13. INTRODUCER‟S DETAIL

Page
The introducer‟s name, account no., introducer‟s signature and the signature
and stamp of the verifying officer are also required to fill in the account
opening form. If the introducer is the account holder in any other branch of
the NBP then the account opening officer is bound to obtain the verification
from that branch. Introducer should be operating any account from last six
month on regular basis that is the account should not be a dormant account.
14. DECLARATION
In the end the applicant(s) agree with the rules and regulations governing the
account operating activities by signing the Relationship Contracts. In case of
sole proprietor or company account the stamp of the business should be
affixed.
15. TERMS & CONDITIONS GOVERNING THE ACCOUNT

The account opening form of every bank has the terms and condition
governing the account as its complementary part so that the customer will be
aware of all these terms at the time of entering this contract. These terms and
conditions should be read and signed by the applicant(s).
B. Acceptance and Verification of Documents:
After filling the Relationship contract the bank officer asks the required
documents from the customer as mentioned above in case of each entity.
The necessary verification is done.
1. VERIFICATION OF THE CNIC

According to the regulation of the SBP now the banker is responsible to
verify the CNIC from NADRA. For this purpose the customer signs an
64
authority letter by which he/ she gives him the authority to verify the
Page
CNIC through the on-line CNIC verification service of NADRA.
2. SIGNATURE DIFFERNET FROM CNIC
If the customer wishes to use a signature to operate his account which is
different from the one on his national identity card, then he will give an
Undertaking under the witness of the Introducer, that he will be
responsible for this change of signature.
3. SIGNATURE SPECIMEN CARD

An important and foremost thing to be signed by a customer is the
Signature Specimen Card (SSC). Afterward this card is used to match the
signature of the customer every time he or she deals with the bank. The
original card is sent to the head office after scanning it to the system.
4. ACCOUNT OF THE ILLETERATE PERSON

In case of the account of an illiterate person the only photo account can be
opened. In this account the customer has to come personally to the bank
every time he/ she will deposit to or withdraw from his/ her accounts. So,
some additional documents are required to obtain from such applicant at
the time of opening a photo account like two photographs of applicant(s),
one is put on the account opening form and the other one is out on the
signature card. Also a declaration is signed by the customer in order to
open a photo account, on which the thumb impression are taken of the
customer. This is done under the witness of the introducer.
5. APPLICATION FOR THE ON-LINE ARRANGEMENT FOR

CLEARING/TRANSFER/CASH TRANSACTION
If the customer wants to have the account to be on-line, so that he can
65
avail the facility of the on-line banking, then he will sign the application
Page
for the use of this facility at time of opening an account or at any time later
on.
6. KNOW YOUR CUSTOMER (KYC)

It is a document which is prepared under the special instruction of the
SBP. As per SBP regulation it is very important for the banker to know his
customer very well. This form is prepared by the account opening officer
according to the information given by the customer to him. Also the
banker is required to update KYC time to time. This form is reviewed by
the Branch Manager or Manager Operation.
C. Letter of Thanks:
After this process a letter of thanks is sent to the customer in order to
verify that the address provided by him is correct. But if the customer
chooses the „Hold Mail Facility‟ then no letter of thanks is sent to him.
Issuance of Cheque Book:
1. FIRST TIME ISSUE OF THE CHEQUE BOOK

After the account is opened, the customer requires a cheque book to
conduct operation in his account. In order to have a cheque book the
account holder signs an application to issue a personalized or blank
cheque book.
 PERSONALIZED CHEQUE BOOK:
A cheque book having the account title and account number
printed on it is called as Personalized Cheque Book. This
assures the safety of the cheques to be used.
66
Page
 BLANK CHEQUE BOOK:
It is the simple cheque book with no account title or account
number on it.
2. REISSUANCE OF CHEQUE BOOK

When two or three leaves are left in the cheque book, the account holder
can demand for a new cheque book, so customer fills “requisition slip”
which is attached in cheque book and gives to banker and receives a new
cheque book for continuing the account. An account holder can also any
other person to receive the new cheque book by giving the authority in the
requisition slip. The authorized person should bring the copy of CNIC to
receive the cheque book.
3. CHARGES FOR THE ISSUANCE OF NEW CHEQUE BOOK
The cheque book can be issued of 10, 25 or 50 leaves as per the
requirements of the customer. The charges are Rs.5 per leaf where the
excise duty is also charged. These charges are paid by the customer in
cash when the cheque book is issued at first. While at the second issue and
so on the charges are deducted from the account.
4. LOSS OF THE CHEQUE BOOK

In case the cheque book is lost by the customer then first step the customer
should take is to stop the payment of all the cheques. The charges for
stopping the payment are Rs.200/- per cheque or Rs.500/- for the whole
cheque book. The report the cheque numbers of the remaining cheques at
the time of the lost. The officer of the NBP will enter these numbers in the
system as stopped. Now no body can encash these cheques all over the
67
Pakistan at any branch.

Page
Second move is to issue a new cheque book in lieu of the old one. For this
the customer signs a ‘Form B’ as a request of the loss and requisitions of
the cheque book. The charges of the Form-B are Rs.100/- . It is one of the
security documents of the bank. The Form-B requires a guarantor to sign
on it. Along with the For-B the customer also signs an indemnity form to
indemnify the bank from any liability claim or loss that may arise by the
misplacement of the cheque book.
CLOSING OF ACCOUNT
There are number of reasons, why an account is closed. Some of most common
reasons are mentioned below:
 At the client‟s own request

 Death of account holder
 Bankruptcy of account holder
 Liquidation or winding up under the companies act.
 Dormant account: a dormant account is an account which is
not being operated by the customer from last six month. In
this case the customer has to request the bank in written
form to allow operation in such an account mentioning the
reason of not operating the account regularly.
PROCEDURE FOR CLOSING AN ACCOUNT
When customer wants to close his or her account due to any reason, he gives
68
the written request either on simple page or on the bank format account closure
Page
request. Surrender the cheque book with the bank which immediately
destroyed by the bank officer. The customer pays a statutory fee of Rs.100 to
the bank in case of the current account. There are no charges for the closure in
other types of accounts. The account opening officer gets an annexure
approved by all the departments and then closes the account. This is a sort of
clearance from all the departments. Account closed log file is printed in order
to complete the process of closing an account. In the end the account opening
form is filed in the closed accounts file. The account which is closed, that
account is cancelled and never issued to any other person.
Updating OF ACCOUNT
It is the responsibility of the account opening department to update any changes

in the account information as they take place.
The following changes can be the change in the address, phone number and
operating instructions.
Token
I have worked on token seat here my duty was to receive cheques

and give tokens to the person who present the cheque. Following
things should be kept in mind while receiving cheques:
 Date of cheque
 Title of account
 Branch stamp on cheque
 Amount in figures and words
 Signatures
If all particulars are correct then write token number on the cheque
and give cheque to the officer who verifies signatures enter it into
computer and give to the cashier. Cashier sign and stamp the
69
cheque and made payment to the customer.

Page
PRESIDENT‟S
ROZGAR
SCHEME
(NBP KAROBAR)
PRESIDENT‟S ROZGAR SCHEME (NBP KAROBAR)

70
Page
President Rozgar Scheme is recently introduced in NBP for unemployed people.
Under this scheme NBP is offering Rikshaws and personal computers to start
their personal business. Bank buy these items for the customer and customer pay
the amount in a given period.
The solution of Pakistan‟s major socio-economic problems primarily lies in the

development and growth of small & micro businesses. These will not only
provide employment opportunities to ever-growing population demand but will
also become the catalyst for breaking the vicious circle of poverty.
In this regard, NBP has developed a full range of Products under the President‟s
Rozgar Scheme with a brand name of “NBP KAROBAR”.
Under the President‟s Rozgar scheme, NBP offer following products:
i) NBP Karobar Utility Store

ii) NBP Karobar Mobile General Store
iii) NBP Karobar Transport
iv) NBP Karobar PCO
v) NBP Karobar Tele-center
i) NBP Karobar Utility Store:

71
The product has been designed in collaboration with “UTILITY STORES

CORPORATION OF PAKISTAN (USC)” to provide financing facility of an
Page
average amount of Rs.100,000/- for a maximum period of five years with
grace period of three months. This is available to all eligible citizens of
Pakistan for setting-up small-scale Retail Outlet or Mobile Utility Store.
Following two financing options are available under this product:
 NBP KAROBAR Utility Store (Shop)

 NBP KAROBAR Mobile Utility Store
 NBP Karobar Mobile General Store
NBP KAROBAR Utility Store (Shop):
Financing facility available to set-up a small scale Retail Outlet (Utility Store in a
shop) for purchase of furniture & fixtures. This is also applicable on payment of
security deposit / advance rent under franchise from the USC. However, stocks
are purchased by the customer.
 NBP KAROBAR Mobile Utility Store:
Financing facility available to purchase a 2/3 wheeler, 4 stroke

Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) with attached
Loader body (Thehla type) under franchise from the USC to carry utility goods
for retail sale ideally in areas where accessibility to conventional utility stores is
difficult.
 NBP Karobar Mobile General Store (without USC Franchise):
This financing program has been designed on the similar pattern of Mobile
Utility Store. The only difference is that the borrower has the liberty of
procuring stock/supplies/grocery items from open market. Under this
product the average loan size of Rs.100,000/- is given for a maximum period
of five years with a grace period of three months.
72
vi) NBP Karobar Transport:

Page
The NBP Karobar Transport is designed to finance 2/3 wheeler, 4 stroke
Petrol/CNG/LPG Vehicle (Auto Scooter / Motorcycle Rickshaw) to the
eligible citizens of Pakistan for providing less expensive environment friendly
transport facility. Under this product average loan size of Rs.100,000/- is
provided for a maximum period of five years with a grace period of three
months.
vii) NBP Karobar PCO:
This product is designed to finance setting-up a PCO. NBP is providing

financing for the purchase of Mobile/Wireless Telephone Set with
connection, Credit Balance. The average amount of financing under this
product is be Rs.5,000/- for a maximum period of two years with a grace
period of three months.
viii) NBP Karobar Tele-center:
This product is specially designed to finance setting-up a Tele-center. NBP is

providing financing for the purchase of Mobile/Wireless Telephone Set with
connection, Computer, Printer and Fax machine cum Photocopier etc. to
establish tele-center on a rented shop or owned premises. The average
amount of financing under this product is Rs.50,000/- for a maximum period
of two years with a grace period of three months.
CONDITIONS TO APPLY
The application forms is available in all NBP branches
 The scheme is offered to eligible young and literate citizens of

Pakistan.
 Falling within an age group of 18-40 years
 Having a minimum qualification of Matriculation (except for females
in the PCO/Tele-center product).
 The eligible borrowers are required to make a down payment of 15%.
 Asset and Life & Disability insurances is mandatory under this
73
scheme.
 The 15% down payment is include 1st year‟s asset insurance premium.
Page
 The cost of life and disability insurance is borne by GoP.
 The mark-up rate for the 1st year is 12%
 Fifty percent (50%) of this rate is paid by the customer i.e. 6% and the
balance of 6% is borne by GoP
Benefit of the Scheme

NBP is the largest bank of Pakistan with the customer base of over 10 million
account holders. The scheme is being launched from designated branches of
NBP, however, This scheme is providing direct and indirect jobs to the tune of
approximately 5.4 million Pakistanis.
It has the largest borrower base exceeding one million customers and growing.
Compared to the average of its peers, for 2003,
NBP was bigger by 53% in asset size,
100% in pre-tax profit,
25% in Return to Assets,
23% on Return on Equity
114% in Earning Per Share.
Procedure:
1. First of all Customer has to open an office account in NBP.
2. All the transactions of President Rozgar Scheme are done under this
account.
74
Page
3. Customer fills up a form, provided by credit officer.
4. This form contains following information

b. Name of the borrower
c. Father‟s name
d. ID card number
e. ID card number of father
f. Phone number
g. Address
h. Monthly income (if doing job or business)
5. Bank needs at least two References from his residential area.
6. Following information about the references is needed

 Name
 Address
 ID card number
 Mobile number or Phone number
7. In case of Telecentre, PCO bank ask for a guarantor as well as two

references.
8. After filling the form customer has to fill a voucher of Rs1500 as

transaction fee.
9. Customer gets receipt of the voucher.
10. Bank sent all the particulars to main branch for verification.
11. Main branch verifies all the details of customer i.e address, ID Card,
Phone no. etc.
12. After that borrower deposits down payment which varies with
products.
75
Page
76
Page
ne
RECCOMMENDATIONS
Some recommendations
After going through SWOT analysis of NBP I have come to the conclusion that
although NBP has major market share and one of the most specialized bank yet
it needs to improve its efficiency in various dimentions.Here are some
recommendations which if adopted can really proved to be fruitfull;
1. NBP has an exorbitant amount of funds at its disposal even then its
infrastructure is relatively poor as compared to its competitors.This
infrastructural deficiency is one of the main reasons of failure of
77
attracting more customers.There is strong need to invest in this

direction.
Page
2. It is not considered by the customers as best provider of banking
services as itdoes not spend handsomely on advertisement
budget.There are neither any brouchers nor any other form of publicity
so major portion of target customers are ignorant of its activities.
3. Customers feel hesitant while dealimg with NBP as customers have to

surpass a lengthy and cumbersome procedure to avail any facility
,There is beureacratic structure found in NBP so employees are not
concerned about their performance so there is need to replace this
structure with that of based on merit system.
4. There are not found satisfactory Quality Service Standards as opposed

to its competitors (other commercial banks) which have emphasis on
customer focus like post of CRO(Customer Representative Officer) on
the other hand NBP has no such post to guide their customers.Thus it
is strongly recommended to appoint a CRO at each branch.
5. There is strong need to reposition the image of NBP in the minds of

masses. People always prefer forging banks over NBP.So its required
to change priorities and customers are to be given more priority.
6. The trend of Islamic banking is gaining popularity now people are

getting more aware of Islamic banking products and other
derivatives,in this regard NBP has not taken any substantial
step.People are just hoping to replace present interest based system
with pure non interest based banking so it is highly desirable to ponder
on these lines and NBP is supposed to offer Islamic banking at mass
level being a national bank NBP has much burden on its shoulder.
7. Credits cards and other consumer financing has been a big failure for
the NBP now its time to dive in this race again in order to prove
competitive in the present arena of severe competition and in order to
retain its existing customer and also attracting new ones as well.
8. As sky is the limit so is the case with NBP it does need to find out more
markets for both purposes ;for receiving deposits and for incurring
investments in diverse fields in diverse countries in order to mitigate
risk arising out of external environment.A diversified portfolio is the
need of the time.
78
Page
9. The branch where I work was lacking staff,resources(basic
infrastructure I-e furniture,computers and space).At clearing ,pension
there was one officer for each work category and in credit department
there are only two officers one of them is a credit officer while other
was a loan officer,the branch has a vast public interaction ,so this
shortage of resources hinders the banking operations and customers
remain unsatisfied ,specially at the time of the start of the month it was
nearly impossible to respond to eeach customer and to attend them
properly ,so I recommend on the basis of my personal observation that
NBP Samanabad building is needed to be reconstructed in order to
broaden it. Appointing more staff at this branch can solve the problems
faced by the customers and employees as well particularly in pension
department.
10. All the branches are not computerized so on time and real time
transaction recording is not possible which causes failure to maintain
and ensure timely availability of up to date data.In most of the
branches of NBP,manual recording is still followed by the staff which is
time consuming ,more exposed to wastage and is not error free.So it is
acute need to replace present partial computerized system with
complete computerized system.
79
Page

NBP

Uploaded by

Copyright:

Available Formats

NBP

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NBP

Uploaded by

Copyright:

Available Formats

Asslam O Alikum

When I joined the bank, I had no practical experience with regard

Praise to Almighty Allah, the Omnipresent, the Omnipotent, Who

No sequence of works can express my sincere gratitude to our respected

I have honor to express my heart-full gratitude to the executive and staff

NBP is 100% owned by the Government of Pakistan (GoP).

It is now extending the operations of the Bank to all branches to Banking, to

Organogram of Governing Bodies

Group Credit Group HR Group Compliance Group Credit

Regional Credit Regional HR Regional Compliance Incharge Credit

Management Chief Chief Administration

Branch Manager Branch Operation Manager

Regional Chief / EVP

Zonal Chief / SVP

Assistant Vice President

Officer Grade-I, II, III

Clerical and non-clerical

DEPARTMENT FUNCTIONING UNDER N.B.P

 Account Opening Department

1. Bank payments & receipts

2. Government receipts & payments

3. Collection of utility bills

The following books are maintained in the cash department:-

1 ... ... Receiving Cashier Books

5 ... ... Cash Balance Book

TYPES OF CHEQUES COLLECTED

(1) TRANSFER CHEQUES

(2) CLEARING CHEQUES

(3) COLLECTION CHEQUES

(4) TRANSFER CHEQUES

(5) CLEARING CHEQUES

(6) COLLECTION CHEQUES

Bills Remittance Department

1. For NBP Account Holder Rs. 50/- (Flat)

LEDGERS OF DEPOSIT DEPARTMENT

NATIONAL BANK OF PAKISTAN

The bank accepts the following types of deposits.

2. PLS Saving deposits

3. Fixed deposits account (Time Deposit)

4. Foreign Currency Account

come in the bank at the time of withdrawals of his deposits.

less then Rs.1000/-

But this restriction is not imposed to the accounts of charitable institutions.

The salient features or profit and loss sharing saving accounts to be

opened in NBP as under.

1. These accounts can be opened by individuals in their own single

provident fund or other benevolent funds of companies, firms,

organizations of welfare and educational institutions.

2. PLS saving account can be opened with an minimum amount of Rs.

4. To share in the profit a minimum balance of Rs.500/- must be

maintained a account. The minimum balanced on sixth and last of

month will qualify for the profits.

5. The profit will be calculated on the basis of monthly minimum

these profits concerned PLS saving account.

7. They shall be no restrictions on maintaining the maximum balance

in PLS saving account.

declaration of Zakat or he is non-mulsim no Zakat will be recovered

which the balance are below upto prescribed limit as declared by

the administrator of Zakat Pakistan Act system of accepting

deposits has been stated in NBP since 01-01-1981.