OBJECTIVES OF STUDYING THE ORGANIZATION The primary purpose of this study is to fulfillment of the requirements for the degree of MBA (Banking & Finance).For this connection each student of this particular course is required to undertake training in a relevant organization selected by them, for a period of 6-8 weeks. The secondary purpose of this internship is to understand how the theoretical knowledge can be applied to the practical situations and examine an organization’s financial issues and identify its opportunities/ problems and also suggest corrective measures. This internship is also very necessary to gain confidence and become aware of the t he mechanism of an organization. As an internee I want to achieve following objectives during my internship and organization study: 1.
To familiarize with a business organization.
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To familiarize with the different departments in the organization and their functioning.
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To enable myself to understand how the key business process are carried out in organization.
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To understand how information is used in an organization for decision making at various levels.
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To relate theory with practice.
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I was also keen to gain professional experience in an actual testing environment.
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I want to develop my skills in the application of theory to practical work situations.
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To develop my attitude conducive to effective interpersonal relationships.
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To acquire good work habits and sense of responsibility.
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To enhance my learning experience by application of fundamental concepts previously learned.
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To observe, analyze and interpret the relevant data competently and in a useful manner.
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To develop my interpersonal communication.
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I want to enhance my knowledge of the discipline of banking administration.
BRIEF HISTORY OF NATIONAL BANK OF PAKISTAN The history of National Bank of Pakistan is part of Pakistan’s struggle for economic independence. National Bank of Pakistan was established on November 9, 1949 under the National Bank of Pakistan Ordinance, 1949 in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian Rupee in 1949. Initially the B ank was established with the objective to extend credit to the agriculture sector. The normal procedure of establishing a banking company under the Companies Law was set aside and the Bank was established through the promulgation of an
Ordinance, due to the crisis situation that had developed with regard to financing of jute trade. The Bank commenced its operations from November 20, 1949 at six important jute centers in the then, East Pakistan and directed its resources in financing of jute crop. The Bank’s Karachi and Lahore offices were subsequently opened in December 1949. The National Bank of Pakistan came forward to establish its offices in the Cotton growing areas and extended credit facilities liberally in order to restore stability to the market. In 1951, the country was once again faced with a crisis in the cotton trade when prices was crashed and touched the lowest level since independence following the cessation of hostilities in Korea. The bank in collaboration with the cotton board provided the necessary Credit facilities to the trade and the crisis was tided over. The nature of responsibilities of the Bank is different and unique from other banks/financial institutions. The Bank acts as the agent to the S tate Bank of Pakistan for handling Provincial/Federal Government Receipts and Payments on their behalf. The Bank has also played an important role in financing the country’s growing trade, which has expanded through the years as diversification took place. The National Bank of Pakistan has its headquarters in Karachi, Pakistan. The bank operates 1249(2008) branches in Pakistan and 22(2008) overseas branches. Under a trust Deed, the bank also provides services as trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT. The National Bank of Pakistan has assets worth Rupees 737976 .44 million on September 30, 2008. National Bank of Pakistan is today a progressive, efficient, and c ustomer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of t he population. These include NBP Karobar, NBP Advance Salary, NBP Saibaan, NBP Kisan Dost, an d NBP Cash n Gold. The National Bank of Pakistan has implemented special credit schemes like small finance for agriculture, business and industries, administrator to Qarz-e-Hasna loans to students, self employment scheme for unemployed persons, public transport scheme. The Bank has expanded its range of products and services to include Shariah Compliant Islamic Banking products. For the pr omotion of literature, NBP recently initiated the Annual Awards for Exce llence in Literature. NBP will confer annual awards to the best books in Urdu and in all prominent regional languages published during the defined per iod. Patronage from NBP would help creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan. It has provided generously to philanthropic causes whenever the need arose. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a conve nient and efficient manner. In 2002 the Bank signed an agreement with Western Union for expanding the base for documented remittances. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate
governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and developing the human resources. National Bank has earned recognition and numerous awards internationally. It has been the recipient of The Bank of the Year 2001, 2002, 2004 and 2005 Award by The Banker Magazine, the Best Foreign Exchange Bank –– Pakistan for 2004, 2005, 2006 and 2007, Global Finance, Best Emerging Market Bank from Pakistan for the year 2005, Global Finance, Kisan Time Awards – 2005 for NBP's services in the agriculture field. It is listed amongst the Region's largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. I t has also been presented a Recognition Award –– 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards. The precise summary of National Bank of Pakistan regarding its countrywide and overseas o perations is as fallows: 1949 National Bank of Pakistan (NBP) was established under the National Bank of P akistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent of the Central Bank wherever the State Bank did not have its own Branch. It also undertook Government Treasury operations. Its first branches were in jute growing areas in East Pakistan. Offices in Karachi and Lahore followed. 1950 NBP established a branch in Jeddah, Saudi Arabia. The Bank in 1950 had one subsidiary ‘The Bank of Bahawalpur’ on December4, 1947 by the former Bahawalpur State 1955 By this time NBP had branches in London and Calcutta. 1957 NBP established a branch in Baghdad, Iraq. 1962 NBP established a branch in Dar-es-Salaam, Tanganyika. 1964 The Iraqi government nationalized NBP's Baghdad branch. 1965 The Indian government seized the Calcutta branch on the outbreak of hostilities betwee n India and Pakistan. 1967 The Tanzanian government nationalized the Dar-Es-Salaam branch. 1971 NBP acquired Bank of China's two branches, one in Karachi and one at Chittagong. At separation of East Pakistan NBP lost its branches there. NBP merged with Eastern Mercantile Bank and with Eastern Bank Corporation. 1974 The government of Pakistan nationalized NBP. As part of t he concomitant consolidation of the banking sector, NBP acquired Bank of Bahawalpur (est. 1947). 1977 NBP opened an offshore brain Cairo. 1994 NBP amalgamated Mehran Bank (est. 1991).
1997 NBP's branch in Ashgabat, Turkmenistan commenced operations. 2000 NBP opened a representative office in Almaty, Kazakhstan. 2001 State Bank of Pakistan and Bank of England agree to allow only 2 Pakistani banks to operate in the UK. NBP and United Bank agreed to merge their operations to form Pakistan International Bank, of which NBP would own 45% and United Bank 55%. 2003 NBP received permission to open a branch in Afghanistan. 2005 NBP closed its offshore branch in Cairo. NATURE OF NATIONAL BANK OF PAKISTAN National Bank of Pakistan was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank operates 1,249 (2007:1,232) branches in Pakistan and 22 (2007:18) overseas branches (including the Export P rocessing Zone branch, Karachi). Under a Trust Deed, the bank also provides services as trustee to National investment Trust (NIT) including safe custody of securities on behalf of NIT. The nature of responsibilities of the Bank is different and unique from other banks/financial institutions. The bank also handles treasury transactions for the Government of Pakistan as an agent to the State Bank of Pakistan for handling provincial/Federal Government receipts and payments on their behalf. The National Bank of Pakistan has also played an important role in financing the country’s growing trade, which has expanded through the years as diversification took place. The bank is providing all banking services of mercantile and commercial banking permissible in the country, which include: Accepting of deposits of money on current, fixe d, saving, term deposit and profit and loss sharing accounts. Borrowing money and arranging finance from other banks. Advancing and lending money to its clients. Financing of projects, including technical assistance, project appraisal through long term/ short term loans, term finance and musharika certificates, etc. Buying, selling, dealing, including entering into forward contracts of foreign exc hange. Financing of seasonal crops like cotton, wheat, rice, sugar cane, tobacco, etc. Receiving of bonds, valuables, etc. for safe custody. Carrying on agency business for any description other than managing age nt, on behalf of clients including Government and local authorities.
Generating, undertaking, promoting, etc. of issue of shares and, bonds etc. Transacting guarantee and indemnity business. Undertaking and executing trusts. Joint venturing with foreign dealers, agents and companies for its representation abroad. Participating in “World Bank” and “Asian Development Bank’s” lines of credit. Providing personalized Hajj services to intending Hajjis.
