Friday, December 9, 2011
BNKI619 Internship Report on National Bank of Pakistan
Executive Summery
NBP falls in banking sector according to current scenario.
Central Bank
Monetary Authority and oversees
Depository Corporations
Commercial Banks
Merchant Banks
Savings Credit Union
Rural and Development Banks, etc.
E-Banking
Brief History of NBP
The NBP was established vide NBP Ordinance No. XIX of November 9. 1949.
The history of the N.B.P. is part of Pakistan struggle for economic independence. In 1947 at the time of partition the economy of the country was main controlled by non-Pakistanis, most of them were Hindus. This partition of the Sub-Continent brought wide spread disturbance and bloodshed on both side of the border. This resulted in the mass migration of population from. one country to another. In this situation the economy of the country influenced badly.
I have completed my internship report on the behalf of Virtual University of Pakistan (Lahore) at National Bank of Pakistan Branch Shorkot Cantt (PAF Base, Rafiqui). NBP is a famous and reputed & national bank of Pakistan. The main purpose of my internship report was to looking for a good hand on experience in the practical field with an invaluable knowledge.
On good performance NBP achieved / won following awards on its better performance. “Bank of the Year” awarded for the year 2010 by the world renowned “The Banker” magazine owned by the Financial Times Group, London NBP is awarded “President of Pakistan Trophy”, a top slot award by Federation of Pakistan Chambers of Commerce and Industry in 2010.
NBP is awarded “Prime Minister of Pakistan Trophy”, a top slot award by Lahore Chambers of Commerce and Industry in 2010 Among the global leading banks, NBP is the only Pakistani bank appearing in top 500 banks of the world in “The Banker” magazine owned by the Financial Times Group, London
Report is based on my six weeks internship program from 30 May, 2011 to 09 July, 2011 at National Bank of Pakistan Brach Shorkot Cantt (PAF Base, Rafiqui). The methodology for collection of data is primary as well as secondary data. The biggest source of information is my personal experience.
Report is divided into different sections. 1st section I have discussed dedication & Acknowledgement. Also scanned copy of Letter of undertaking and internship completion certificate is attached. In 2nd section I have written Executive summery and Table of contents. 3rd section has brief introduction of Banking Sector and overview of the bank including history, hieracrchy chart, business volume, product lines, competitor’s list, introduction of all departments under NBP & comments on organizational structure. 4th section has plan of my internship report & training programme. Critical Analysis based on risks faced by the bank, risk mitigation techniques along with loaning procedure and future prospects of the bank is discussed in section 5th.
At the end of the report future look / prosperity of the whole organization, conclusion and recommendations for improvement is discussed. overview, history, vision, mission, core values, Nature of business & volume, product line, competitor & comments.
Brief Introduction of Banking Sector
NBP falls in banking sector according to current scenario.
Central Bank
Monetary Authority and oversees
Depository Corporations
Commercial Banks
Merchant Banks
Savings Credit Union
Rural and Development Banks, etc.
E-Banking
In Pakistan, banking sector provides around 6 million borrowers and 25 million depositors, implying a penetration rate of 3.6 percent and 15 percent respectively. In terms of admittance to microfinance which means the availability of small loans, micro deposits to low income households, the current penetration rate is just 10 percent. In other words we can say that approximately 80-85 percent of Pakistan's population does not have access to any regulated financial services institutions. That makes the economic world uneven and discriminatory. There are at present 20 domestic banks with 7,590 branches and 21 foreign banks with 71 branches in operation in the country. Banking sector plays significant role in the economic life of the nation.
It participates in effective way in the process of economic development of the country. It influences different economic activities like elimination of poverty, mobilization of resources, creation and distribution of public finance. Banking sector is often called as a nation's economic engine. Almost 81% of banking assets are in private hands. Likewise, the present foreign stake comes to 47% of total paid-up capital of all the financial institutions regulated by Pakistan's central bank, the State Bank of Pakistan. Banking sector of Pakistan consists of Commercial Banks, Specialized Banking and other non-banking financial Institutions
The NBP was established vide NBP Ordinance No. XIX of November 9. 1949.
The history of the N.B.P. is part of Pakistan struggle for economic independence. In 1947 at the time of partition the economy of the country was main controlled by non-Pakistanis, most of them were Hindus. This partition of the Sub-Continent brought wide spread disturbance and bloodshed on both side of the border. This resulted in the mass migration of population from. one country to another. In this situation the economy of the country influenced badly.
At the time of independence it had been arranged between India and Pakistan that Reserve Bank of India should act as the common monetary authority for both countries upto end of September, 1948. But the arrangement did not prove satisfactory. In August, 1947, Pakistan had been given a first installment of twenty crore of rupees, out of its shares of cash balance of undivided India to meet immediate requirements. The balance amounting to fifty crore rupees was to be paid later, But when Pakistan demanded that amount, they refused to hand over the money unless Pakistan agreed to give up interest in Kashmir and thus the Government of Pakistan could not agree. This situation occurred, when Reserve Bank of India was functioning as the Central Bank of Pakistan.
As a result of this experience, Pakistan felt it could not place any reliance on the Reserve Bank of India. It was clear that its own central Bank was an indispensable necessity and it was opened by the Quaid-e-Azam on the first of July, 1948. When state Bank came into existence, it claimed its share of the assets of the Reserve Bank of India against the Indian currency, retired from Pakistan territory. But again dispute arose. The dispute is still unsettled and these assets have not been delivered to Pakistan.
Business Volume
National bank of Pakistan has set higher standard of achievement. It is the key business partner of Government of Pakistan. NBP is 100% owned by government of Pakistan, and hold 24% share of time and demand deposit. NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and while it has not been completely privatized like the other three public sector banks, partial privatization has taken place. It is now listed on the Karachi Stock Exchange. The Bank's financial performance has been remarkable. In 2006, total assets were estimated at Rs. 635 billion, while deposits have grown to nearly Rs. 502 billion. Pre-tax profit rose to Rs. 26 billion. Earnings per share have jumped to Rs. 24.01 in 2006. In year 2010 total assets are Rs. 1,035,025 million.
Task Assigned in Deposit Department
Deposit department is responsible for collecting of cheques which may be paid with in city or out of city for clearance / identification. I learnt that the clearing procedure takes approximately 3 days to complete in previous days but now these days online accounts have been verified / checked with the seconds with the advancement of technology. During my stay in deposit department I have been collecting cheques from general public and other clients of NBP and send to NIFT which perform the services of clearing house. I learnt the procedure of issuing of new cheque book and predict. I have also performed my duty to fill the deposit slips during my stay at this department.
I have performed this duty every day till my internship period. On the other hand manger has assigned me to fill the new account opening form if new consumes come and open new account. So I have also filled the account opening form whenever any consumers desired to open an account. During stay at this department my duty was to give information to their consumers regarding to saving accounts and current accounts and about others products if customers feel need about that. So providing maximum information about account opening process, fill the form, fill the deposit slip, and give information to consumers about product and its features were the majority tasks that I performed during stay at this department
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ALHUMDULILLAH
ReplyDeleteI am Successfully passed out my MBA with 3.61 CGPA
First of All I am Very Thankful to VUACCESS.and weblyceum group. they really helped me out and give me sincere and energetic friends...
AM Also Not Forget 2 say Thanks to all Other groups and sites
Thanks to all my Friends who encourage me in my whole mba
My senoiurs my fellows Thanks to Each and every person in my Campus(PKHW02 LUCK) Group... There is long list... kisi ka ka name bhi miss ho giya to meri sehat k lie acha ni hoga ... thats why no Name...
And all online friends who help me out without knowing me who am i? specially in preparation of internship report and Viva… again no name mentioned due to… ooper wali reason…
Just want to mention one person’s name that M Shehbaz Anjum (my campus administrator)... who really support us in handling every type of difficulties During this session Thank you so much sir....Allah bless you...
In Last I leave a message for new commers and joniours
“ VU is just Group study , Group study and Ultimatly Group study”.
.--
Muhammad Zeshan Qaisar
MBA Finance