Internship Report on National Bank of Pakistan

Internship Report on National Bank of Pakistan complete

I dedicate this Internship Report on National Bank of Pakistan to my maternal grandfather who raised me and brought me in the absence of my parents. No doubt I could have been loitering somewhere in village had he not taken care of me and attended me like shepherd would attend his herd. I was brought up without finding my mother around, my father was there but under intense pressure from her wife i.e. my stepmother he could not attend me. Under these circumstances my grandfather took the responsibility of my care and brought me up like his real child.

ACKNOWLEDGEMENT

All praise for Allah who has enabled us to complete our project successfully. Few words of appraisal can never match the support and help our patrons have extended to us throughout our lives.

First and foremost, we would express our gratitude to our loving parents with out whose support and help, we would never had been able to reach this far in our lives. We would also extend our gratitude to Sir Naveed Iqbal, our respectful teacher, who guided and facilitated us a lot during this semester

EXECUTIVE SUMMARY 

National Bank of Pakistan is a Govt. bank. It has its head office in Karachi. It has over 1,232 branches in Pakistan & 18 abroad.  So in order to advance educational knowledge of Management and accelerate my skills, I did my internship in National Bank of Pakistan, Kotli Main Branch AJK and to know how I will work in banking institutions and among various types of people have a different attitude. The objective of this Internship was to explore the issues relating to Management and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of National Bank of Pakistan. There are many possible improvements, which we can make positive changes in the system.Therefore the current Internship Report on NBP  is presenting the true pictures of national bank of Pakistan.

The objective of this Internship was to explore the issues relating to Management and to find out problems regarding the theoretical concepts with practical experience working in an organization during the internship and study the system of National Bank of Pakistan. There are many possible improvements, which we can make positive changes in the system.Therefore the current Internship Report on NBP  is presenting the true pictures of national bank of Pakistan.

Internship Report on National Bank of Pakistan

With the innovation of online banking system the workload can be substantially decreased. All the staffs do not know about computer. There is almost one or two employees are trained to operate the system in every branch. Especially, the cash department is not familiar with computer and information system. It is not easy for it to implement a new system immediately it takes a lot of time to replace systems. Once implemented its testing takes more time. So it is important for the Bank to develop a research department for redesigning the operations of the Bank. The Management of the bank is experienced but not adequate with the changing environment of financial institutions. I observed that seniors are illiterate of computer and not technical hands. New comers have more knowledge about business administration and have vast skilled in information technology. To update the skills, it is suggested to develop human resources training programs and refresher courses.

Brief Introduction of the Organization,s Business Sector 

Establishment of National Bank of Pakistan

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.

National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organization into a modern commercial bank. The Bank’s services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence) it has diversified its business portfolio and is today a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financing, treasury services and is showing growing interest in promoting and developing the country’s small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen

National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre abroad. The Bank has representative offices in Beijing , Tashkent , Chicago and Toronto . It has agency arrangements with more than 3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBP

  Objective of NBP

NBP is a commercial bank the functions of commercial banks are taking deposits and give advances and earn markup on it which is bank profit. So being a commercial bank the primary objective of NBP is to earn markup and maximize its profit. To achieve the maximum profit following ways are adopted.

Easy Procedure and Low-Cost Deposits

In these time sever competition is grow lastly in every field due to information technology and telecommunication enhancements and banking industry is no exception. The aim of every bank is to procure as much as deposits as possible by providing low-cost deposits and better customer services. The bank can grow rapidly only if bank has the cash to invest in different projects and deposits are the main source of cash. NBP with special emphasis on corporate governess is improving its facilities and services day by day to attract customers with a higher volume of deposits.

 Advancing (lending money to its clients

The profit of any bank is that the distinction between markup charged on advances and profit paid to depositors. thus earning of banks depends on the quantity of loan it extends. The deposits procured ar endowed in several comes. to supply credit NBP prefers real sound and reliable parties. The credit department of NBP consists of extremely skilled and older workers and well organized.

Overview of the organization.

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.

Product lines: –

1. It gives deposit services to customers.
2. It enables customers with financing & credit.
3. It works for the Govt. on paymts and receipts.
4. It also gives locker and safe-keeping of other valuable items.

Organizational structure 

Executive Board

 The mundane activities of commercial banks are looks upon by the executive board. The general affairs of any commercial affairs are directed and supervise by the executive board. Federal government appointed the number of the board which comprises the president, secretary, and other members. The responsibilities of redirecting, controlling and managing the activities of the bank are looked by the chief executive who is the president of the board.

NBP has an executive committee with the president has its chairman, five SEVP'”s as its member president adviser as an observer.

Chief Executive

In the administrative hierarchy is at apex. Meetings of the executive board are presided over by him. So he is responsible for management of the whole bank activities.

Group Chief

An effective tool for managing any large and expanded organization is decentralization. So NBP has been divided into several numbers of divisions, where regional chiefs/SEVP/EVP supervises and controls each region.

Overview of Head Office Set Up

PLAN OF INTERNSHIP PROGRAM  

My Internship work

Kotli AJK Branch of NBP is a well-known branch in the region and performs almost all the functions of a commercial bank and treat the customer as the best they can do. It performs all the functions, from the deposits to give advances and from remittance to safe custody service. The branch provides services in cheque clearing, remittances, bill clearing, and advances to the people at their entire satisfaction. The branch is situated on Aslam Market.

My Basic task in Account Opening Department.

My first training started from this department. The first day I was given the task to arrange the entire customer’s file with respect to date and time. My head briefed me all the work and so I learned very well about arranging files etc. second day I was given some vouchers and I was asked to label them and punch. Also I learned that how to fill account opening form and to learn efficiently I filled many forms of customers.

Fill the account opening form

To brief the customer about open an account was my duty in this department. I guided customers that what are requirements for open an account and what are other necessities.

Duty to do I.D.Card verification through NADARA LINK

I took CNIC number from customer. And I verified his CNIC from NADRA verification link. And hence I completed this task too.

Data Entry into computer

When I filled account opening form of customer I entered all the data into computer for further steps. For activation of the account, I send all this data to the operational manager for account supervision.

Duty to Filled the Deposit Slips

My duty was also to fill the deposit slip of customer at daily basis.

Duty to provide information to consumers 

To brief new customers about opening an account was one of my duties at this department.

Duty was to print out the Bank statement.

I also took print out of bank statements and also provide these documents if any of customer want to take.

FUNCTIONS OF MANAGEMENT.

Planning

Planning is basically is a process of thinking about and organizing the activities which are required to access company goals. Sometimes planning involves the creation and maintenance of a plan. In other words, we can say that planning is a fundamental property of intelligent to access the desired goals. During the internship, I felt that branch manager prepared good plan to improve the bank activities. Manager decisions are directly correlated with outcomes of the branch. So from my observation manager has the ability to make a good plan.

 Decision-making process

During my internship I felt manager of this branch make a good and effective plan through under below process:-

1. Firstly manager sees the area where the problem exists.
2. Then introduce some alternative solution to resolve the specific issue
3. Select the best alternative to resolve the current problem
4. Then implementation and monitoring

Organizing:

 We know that organizing is the vital managerial function of arranging people and resources towards company goals. The main purpose of organizing includes but is not limited to find out the tasks to be performed in order to access the bank objectives. In this process manager liable to dividing the worker’s tasks into specific jobs, grouping jobs into departments.

It is terribly essential aspects of the management perform that involves the method of determining what tasks are getting to do. Manager National Bank decides how tasks are to be grouped, who reports to whom and where selections should be created.

Departmentalization

 In fact, Departmentalization refers to the process of grouping activities into departments. Division of labor creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments. According to my true observation, NBP employees are working functionally and divisionally also on the base on skilled expertise,

Chain of command

 In easy words we can say that a command hierarchy is a group of people dedicated to carrying out orders “from the top”, that is, of authority. It is part of a power structure: usually seen as the most vulnerable and also the most powerful part of it. At branch level authority of command has been assigned to branch manager. He or she has fully authority to take any decision within branch level however some long term decision or plan have been taken by the top management. Hence. Branch manager is responsible to receive the instructions, order from the area office and area office is responsible to received all instruction from the regional office.

Centralization/Decentralization

National bank of Pakistan centralized in case of if the decision is made at a lower level. NBP is decentralized to the point that decisions made at lower levels or make within an overall set of policies, procedures and standards decisions are not covered on the left view of a lower level of managers.

CRITICAL ANALYSIS.

As I have already written in my training program that I have done my internship at NBP due to my degree requirement. The main purpose of this internship was to get maximum practical and professional knowledge from the NBP employees. During my internship at this branch I have observed some critical points which I want to share here because it is part of my report. Firstly I want to share my observation related to branch employees.

Poor Customers dealing

I have observed that employees were not good trained to deal customers in professional manners. I have seen that most of the customers submitted their complaints regarding to employees misconduct to branch managers. I have often seen that most of the employees are mostly busy in phones call to their relatives and friends in the availability of customers. Most of the employees, unfortunately, spend a tremendous amount of time with the customers in unprofessional behaviors and their attitudes with customers were not good. This practice may reduce the customers as well company outcomes or outputs.

Less Top management support

I have observed that most top management is participating whenever any issue, disputes arise within the branch but manager have to take the decision alone and this is not good. During a stay at this branch, I observed that this organization has not introduced specificity of quality goals in the bank business plan. Management does not recognize the contribution of work forcing development or improvement and maintenance of quality. It has also seen that top management; executive managers in head office level are not assuming any responsibility of quality. Hence the quality of employees work, product and services are not good or up to the mark as compared to other banks.

Fewer Employees Participation

It has also felt that this organization is not allowing their employees to participate in decision-making or in planning in operating activities. The bank is not encouraging their employees to contribute to improving work quality or efficiency and operational performance and employee are not encouraged through financial rewards to identify and fix problems in their area of work.

SWOT Analysis

SWOT analysis is kind of tool that is used to analyze an organizations’ performance in relation to its environment external or internal opportunities and threats. Strengths, Weaknesses, Opportunities and Threats analysis is an important tool used by most of the companies in order finds out the position of the company. The strengths of the company shows the areas where it is strong, weaknesses are the areas where the company is weak and is exposed to risk. Opportunities are the areas where the company can go and avail the untouched or high return giving portions. Threats are the risks from the competitors as well as from other sources. Strategy analysis and selection of the best alternative is of critical importance and prime responsibility for an organizations management. The management has to go through extensive internal and external analysis to determine their organizations performance in relation to their mission and objectives.

NBP is a strong in all aspects if we observe the financial statements and the general ratings. But still there are particular areas where the bank is either weak or is exposed to certain risk. The SWOT analysis of NBP is as follows: –

Strengths: –

i. Official customer + their deposit.
ii. Relative more deposit –vs– Private Bank.
iii. 75% Nationalized Bank.
iv. Longest player of local money¬.
v. New products of NBP.
vi. Different types of awards

Weaknesses: –

i. Bureaucratic culture.
ii. Lack of Modern IT system
iii. Less trained workers
iv. Poor performance system
v. Less employees participation in decision making
vi. Poor physically environment
vii. Huge customers complaints
viii. ATM issues as it is often out of order
ix. Less online branches
x. Lack of marketing strategy/promotion.

 

Opportunities: –

i. Support of technology, use of modern technology
ii. Due to Huge deposit and reputation chance to attract more investors.
iii. Textile sector .because due to good reputation NBP has the opportunity to gain textile clients.
iv. International investment or joint venture with any leading bank
v. New branches in international level
vi. More Online branches
vii. Producing high value products and schemes

Threats: –

i. Superiority of private bank.
ii. Government roles and regulation
iii. Country economic condition
iv. Political pressure
v. Entry of new private banks
vi. High external & domestic debt.
vii. Fiscal deficit.

CONCLUSION

Myriad factors are involved while contributing to this the radical change in profitability. First of all indigenous adverse economic conditions i.e. power shortages, the law & order, liquidity in the banking system, record high inflation, steep rise in interest rates, increase in Government borrowing from the central bank, rising import bill and resulting growth in fiscal deficit etc.

All of these in conglomeration with a change in minimum deposit rate by the SBP and other internal factors led to such performance. This reduction in profitability is not unique only to this bank; this has been the overall trend in the banking industry. Other banks have suffered but not to such a great extent. A probable reason for NBP’s lower profitability could be its massive size and three-fourth government’s ownership resulting in administrative problems.