Friday, August 31, 2012

NATIONAL BANK OF PAKISTAN




NATIONAL BANK OF PAKISTAN



                                                                                    
                                                                                                                                                                        
Internship Report
                                                                                    
                                                                               




















Executive Summary:


This study contains the study of PECHS Branch of National Bank of Pakistan .

This is the age of specialization; every person must be capable in his/her particular field. Some practical experience is necessary to enter the field because only education given in the universities is not enough to compete with the world wide changing situation. The field work is difficult and complicated. This is a good reason why the students of bachelors are being given a fair chance to get the practical area in which students have to enter after completing education.

Internship is a vital part of any degree program. This report is a result of six week performance in the form of internship at National Bank of Pakistan, PECHS Branch Karachi. Experience was full of knowledge regarding various facets of banking sector. This report consists of practical experience, which I achieved during internship program.

At the commencement of internship at NBP, I was aware of what I am going to learn and observe. People usually use to say that practical works is quite different from books or what has been educated in colleges and universities. In real life, one has to get in touch with public, and how to deal with them, it’s not taught in colleges and not in books even. It’s what you get through practical work when you enter in market.

All the information in this report is based upon my observation, interviews and practical involvement in different tasks during my internship at NBP

This report is being divided into various sections:

First is introductory portion which relates to introduction of the Banking sector, the strong banking sector is the back bone of the economy of any country. One aspect of this powerful force is government policies and foreign investments. The banks provide lending, borrowing, safety, availability and transferability of the resources to its customers in a better way. Then describe the brief history of the NBP that it was established on November 9, 1949 as a semi public commercial bank. And now Alhamdulillah, NBP has established more than 1537 branches in all over the country. In this portion it is also describe that it is a public limited company listed in Karachi Stock Exchange (KSE), Islamabad Stock Exchange (ISE), and Lahore Stock Exchange (LSE). Its business volume and its products that it offers different types of products such as NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold.

In the next portion of Organizational Structure, Organizational Hierarchy chart, how many employees work in the organization, the location of the main offices of the organization such as the head office of the NBP at Karachi and major branches are in almost all big cities of the country. Introduction of all departments of the organization is described.

In next step, I portrayed the Plan of my internship program and then introduce the branch where I did my internship. And   Names of the departments in which I got training those are, Account Opening, Clearing, Advances and loans ,pension and Remmittance

At end, report shows training program in detail i.e. detailed description of the operations/activities of the department(s) I worked in and also the detailed description of the tasks assigned to me and how I was performed them.
.
In the last, the SWOT analysis, final Recommendations & Suggestions are given to overcome faults & troubles that are being faced by National Bank of Pakistan.

The analysis is prepared by Tazeen Ayub







Contents



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Brief introduction of the organization’s business sector


A bank is a financial institution and is licensed by Government. To provide the financial services to its customers is the primary activity of any bank. Bank enriches its investors. Financial activities like investment funds and taking part in financial markets is done by banking sector.

Financial institutions, like in Germany, banks have possessed large stakes in industrial businesses but in some other countries like US banks are not allowed for possession of non financial companies. Banks are the link of a cross share holding entity called “ZAIBATSU”.

Government regulations level of banking sector varies broadly from country to country, like ICELAND who is having comparatively light regulations of banking business. Whereas countries like CHINA who have large variety of rules and regulations but have no systematic process that can be followed typical of a communist system.

The banks services were very poorly exaggerated At the time of independence in 1947 and by June 30, 1948, the number of offices of scheduled banks came down to only 81 in the territories comprising Pakistan; but there were following 14 scheduled Pakistani commercial banks with 3323 offices all over the Pakistan and 74 offices in foreign countries by December 31, 1973.

  • National Bank of Pakistan
  • United Bank Limited.
  • Punjab Provincial Cooperative bank limited.
  • Habib bank (Overseas) Limited
  • Muslim Commercial Bank Limited.
  • Bank of Bahawalpur Limited.
  • Standard bank Limited.
  • Australasia bank limited.

Overview of organization

Brief history

“One way to keep momentum going is to have constantly greater goals”

At the freedom of Pakistan the banks services were badly affected by the political conditions of the country and banks were not working according to the mark, in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian rupee National Bank of Pakistan was established on November 9, 1949 as a semi public commercial bank under the National Bank of Pakistan. The main purpose of the National Bank of Pakistan at its initial stage is to extend credit to the agriculture sector.
              At that time the crises were on their peak so the main purpose of National Bank of Pakistan was to face the problems that had arisen with regard to financing of jute trade. National Bank started its functions on November 20, 1949 with its very important eight jute centers in the East Pakistan. Mr.Ghulam Farooq was announced the first chairman of Jute Board and Mumtaz Hassan was announced the first chairman of National Bank of Pakistan. National Bank of Pakistan was remained totally under the Jute Operations till 1950. The first M.D of the National Bank of Pakistan was Mr. M.A. Muhajir. In 1952 Governor of State Bank of Pakistan decided to replace Imperial Bank of India by National Bank of Pakistan.
               By becoming Mr. Mumtaz Hassan the MD of NBP, the number of branches, deposits and the number of employees had increased significantly as compare earlier, it was all happen by the great struggle of Mr. Mumtaz Hussan. In Dec. 1966 its 600th branch was opened raising the deposits to 2.31 billion, and staff to 14, 963. Up to 1965, the shareholders had received 225% of their original investment. Now it has more than 21549 employees 1537 branches and Rs.208283 million deposits.
              National Bank Pakistan has a matchless position in the financial sector of Pakistan. It is the agent of the Stats Bank of Pakistan where it has no its own Branch. The National Bank of Pakistan is the largest Commercial Bank of Pakistan and transacts all types of Banking Business. The Head Office of the Bank is at Karachi.
              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.
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.
NBP is 100% owned by the Government of Pakistan (GOP).

Vision

“To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility.”

Mission:

NBP will aspire to the values that make NBP truly the Nation’s Bank by:

Æ  Creating a distinctive brand identity by giving the highest principles of services
Æ  Institutionalizing a merit and performance culture
Æ  Adopting the best international management practices
Æ  Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate.
Æ  Maximizing stake holder’s value

Nature of the organization

National Bank of Pakistan is a banking organization, a public limited company listed in Karachi Stock Exchange (KSE), Islamabad Stock Exchange (ISE), and Lahore Stock Exchange (LSE).

NBP Product lines:

ATM / Debit Cards
Protection Shield Insurance
Remittance Facilities
Advance Salary (Personal loan)
Cash and Gold (loan Secured against Gold)
SME / Commercial Financing
Trade Finance Facilities
Current, Savings, Term, Foreign Currency Accounts
Kissan Dost Taquat (Agriculture)
NBP Saibaan (Housing Finance)
NBP Karobar (Micro Finance)
Commodity Finance
Investor Advantage (Margin Financing)
NBP Premium Aamdani
NBP Premium Saver
NBP Karobar

Cash Management / Financial Institutions
Treasury Services to Government
Islamic Banking Products
Finance / Credit Facilities
Loan Syndication
Structured Finance
Project Finance
Financial Advisory Service
Investments / Participations
Proprietary Equity Trading
NBP Cash n Gold
NBP Kisan Taqat
NBP Kisan Dost
NBP Pak Remit
NBP Protection Shield
NBP Saiban
NBP Advance Salary
NBP Cash Card
NBP Investor Advantage








Detail of some of products is as follows:

D       PREMIUM SAVER (your saving reward)PLS Saving Account:
D       NBP SAIBAAN(Home Financing)
D       NBP ADVANCE SALARY(Personal Loan)
D       NBP CASH AND GOLD(Ready Cash against Gold)
D       AGRICULTURE FARMING PROGRAM
D       NBP CASH CARD
D       NBP INVESTOR ADVANTAGE
D       NBP KAROBAR MERA APNA KAROBAR
D       PREMIUM AAMDANI (Unprecedented safety, unprecedented return)Monthly income scheme
D       NBP'S INTERNET BASED HOME REMITTANCES SERVICE
D       NBP PROTECTION SHIELD

Services Offered By NBP


Corporate Finance
Working Capital and Short Term Loans
Medium Term Loans and Project Financing
Loan Structuring and Syndication
Cash Management Service
International Banking
Disbursement of Pensions (EOBI)
Musharika
Ijara
Mudarba
PLS Term Deposits
PLS Saving Accounts
Current Accounts
Demand Drafts

Utility Bills
Provincial Collections
Sale and Purchase of Prize Bonds
Foreign Remittances
National Income Daily Account (NIDA)
Commercial Finance
Agriculture Financing (Medium to Long Term)
Letters of Credit
Traveler’s Cheque
Pay Orders
Mail Transfers
Government Treasury Functions
Government Receipt and Payments
Farm Credit



Detail of some services is as follows:

Æ  DEMAND DRAFT
It is a simple, safe, rapid and reliable way to shift money. For the transformation of the money an individual has an account in the bank or not can purchase it from any branch of NBP at very affordable rates.

Æ  MAIL TRANSFERS
One can move one’s money safely and quickly using NBP Mail Transfer service.  NBP also offer the most competitive rates in the market.

Æ  PAY ORDER
Another reason to move money from one place to another by using NBP’s services is Pay Order. The charges of this service are very reasonable. Pay orders of NBP are a safe and straightforward way to shift money from one place to another. 

Æ  LETTER OF CREDIT
NBP is faithful to present its industrial clients the widest variety of options in the part of money move.  If someone is interested then Letter of Credit service by NBP is a service for business enterprise and it is fulfill the necessities of commercial enterprises. With rational rates, safety, and easiness of transaction, NBP Letters of Credit are the best way to do business transactions.

Æ  MAIL TRANSFER
It is faster mode of transfer money than demand draft. Mail transfer is the inter city transfer of money between two branches of a bank, through mail/currier.

Æ  PAYMENT ORDERS
If the customer or account holder wants to make payment within the city, then this is done through P.O. It can’t be cancelled without the consent of both parties.

Organizational Structure

Organizational Hierarchy chart:

NBP’s Hierarchy is a follows:



Number of employees

In Overall Organization=15204
In PECHS branch=50

Main offices

The Head Office of the National Bank of Pakistan is at Karachi. NBP carries on its business all the way through a wide set up of branches those are situated in the country and out of the country very professionally and in point of fact. All branches execute their functions under the rule of local Regional Offices and regional offices are proscribed by the Head Office situated a superb building in the heart of Karachi’s center.
NBP has a wide domestic branch network consist of more than 1500 branches situated in all over the country. NBP has also more than 24 branches out of the country
SINDH
In the Sindh the main offices of the NBP are in the following cities; 

Ø  Karachi
Ø  Dadu/ Sanghar
Ø  Hyderabad
Ø  Jacobabad/ Shikarpur 
Ø  Larkana
Ø  Mirpurkhas/ Badin 
Ø  Nawabshah/ N' Feroze 
Ø  Sukkur/ Khairpur
Ø  Tharparkar 

PUNJAB;
               Punjab has the main offices of the NBP in the following cities;
Ø  Lahore
Ø  Faisalabad 
Ø  Karachi
Ø  Sialkot/ Narowal 
Ø  Islamabad
Ø  Jhang
Ø  Jhelum/ Gujrat/ Chakwal
Ø  Bahawalpur
Ø  D.G. Khan/ RYKhan
Ø  Multan/ Baha'nagar 
Ø  Murree/ Attock/ Gilgit
Ø  Rawalpindi
Ø  Sahiwal
Ø  Sargodha/ Sheikhupura

 NWFP’
             In the NEFP main offices are in the following cities;
Ø  Peshawar
Ø  Abbott Abad
Ø  D.I. Khan
Ø  Kohat
Ø  Mardan

BALUCHISTAN;

Main Branches of NBP are in the following cities;
Ø  Queta
Ø  Azad Kashmir
Ø  Muzaffarabad
Ø  Mirpur


NBP REGIONAL OFFICES;

Ø  Karachi (South)
Ø  Karachi (West)
Ø  Hyderabad
Ø  Larkana
Ø  Sukkur
Ø  Quetta
Ø  Gawadar
Ø  Lahore (Central)
Ø  Lahore (East)
Ø  Karachi
Ø  Sialkot
Ø  Faisalabad
Ø  Jhang
Ø  Sargodha
Ø  Multan

Ø  Bahawalpur
Ø  Dera Ghazi Khan
Ø  Sahiwal
Ø  Federal Capital Islamabad
Ø  Rawalpindi
Ø  Jhelum
Ø  Gujarat
Ø  Peshawar
Ø  Mardan
Ø  Dera Ismail Khan
Ø  Abbott Abad
Ø  Muzaffarabad (A.K.)
Ø  Mirpur (A.K.)
Ø  Gilgit (sub-region)














NBP OVERSEAS BRANCHES


America and Europe Region

1)      USA
2)      Canada
3)      Germany
4)      France


Far East Region

1)      Hong Kong
2)      Japan
3)      South Korea
4)      China


Middle East, Africa & South Asia Region
1)      Bahrain
2)      Egypt
3)      Bangladesh
4)      EPZ


Central Asian Republics
1)      Afghanistan
2)      Turkmenistan
3)      Kyrgyz Republic
4)      Kazakhstan
5)      Uzbekistan
6)      Azerbaijan


Subsidiary;
  1. NBP Kazakhstan (Almaty)


Joint Venture;
  1. United National Bank (UK)

Representative Off;
  1. Canada (Toronto)
  2. USA (Chicago)
  3. China (Beijing)
  4. Uzbekistan (Tashkent

Introduction of all departments


Following are departments in NBP:

  1. Deposit Department
  2. Account Opening Department
  3. Bills Remittance Department
  4. Cash Department
  5. Clearing Department
  6. Credit Department
  7. Government Department
  8. Foreign exchange

1.     Deposit Department

The following types of ledgers are concerned with deposit department:
Ø  Saving Ledgers
Ø  Current Ledgers
Ø  Profit and Loss Sharing Ledgers
Ø  Fixed Deposit Register
Ø  Cash Book
Ø  Daily Profit and Loss Summary Book
Ø  Voucher Register

2.     Account Opening Department:


This department is related to open new accounts of the customers and infect opening of an account is the establishment of the relationship between the bank and customer. branches. Following are the types of accounts open in the NBP;
Ø  Current
Ø  PLS SNTDR
Ø  PLS saving
Ø  FC
Ø  PLS term
Ø  Premium saver
Ø  BBA
Ø  Call deposit

3.     Bills Remittance Department


Remittance means transfer money from one place to another place.  NBP provides
The following are the main functions of this department. Remittance can take place in three different ways.
Ø  Demand Draft
Ø  Mail Transfer
Ø  Telegraphic Transfer

4.     Cash Department


The most important section in the bank is Cash Department..  
The following books are maintained in the cash department:-

Ø  Receiving Cashier Books
Ø  Token Book
Ø  Paying Cashier Book
Ø  Scroll Books
Ø  Cash Balance Book

5.     Clearing Department

Following are types of cheques collected for clearing:
Ø  Clearing cheques
Ø  Transfer cheques
Ø  Collection cheques
.

6.     Credit Department;


Credit Department is associated with other three departments related to financing i.e.
Ø  Trade Finance
Ø  Ijarah
Ø  Corporate Banking

7.     Government Department;


Payment of pension also is being done by this department. Department of Government section receives all the provincial and central receipts. NBP makes payments to following:
Ø  Retired officers of Armed forces
Ø  Civilian
Ø  Retired officers of PAF and families
Ø  Defense civilian pensioners
Ø  Others ( KRL, OGDC, PAEC/ PR, RANGERS)

Documents required for the pension payments:
Ø  Pension payment order
Ø  No and date of NIC
Ø  Pension book
Ø  Photographs of the pensioner
Ø  Two specimen signature, thumb and finger impression.




Plan of your internship program:

A brief introduction of the branch where you did your internship

I preferred to do my internship at National Bank of Pakistan the reason was that it is largest and leading commercial banks of Pakistan and I want to continue my learning at well reputed organization which would be productive both for the organization and me as well. NBP is responsible to provide all services to its customer. .
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.
The working and learning environment of the bank is very valuable and high quality.
.

I started my internship in National Bank of Pakistan on 17th May 2012. I worked there for 6 weeks. My internship ended on 30 June 2012

Names of the departments in which you got training and the duration of your training

During the short time period of my internship in National Bank of Pakistan, I was given a chance to work in following four departments of the bank;
  1. Remittance Department
  2. Account Opening Department
  3. Government /pension Department
  4. Loans &Advances
  5. Clearing Department
  6. Foreign exchange
  7. Cash department
  8. FBR department
The purpose was to give me a close look of the whole working of a banking institution. I spent 1 week in each department to learn more and more from the appointed staff; it’s really a wonderful learning experience.

Training program

I have covered following departments in NATIONAL BANK OF PAKISTAN  PECHS branch karachi.
  1. Remittance Department
  2. Account Opening Department
  3. Government /pension Department
  4. Loans &Advances
  5. Clearing Department
  6. Foreign exchange
  7. Cash department
  8. FBR department

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;


Following are the responsibilities of the account opening department;

ü  Account opening
ü  Documentation at the time of opening of an account
ü  Issue cheque book 
ü  Closure of an account

ACCOUNT OPENING;

. NBP has following categories of accounts:

ü  Individual Account
ü  Joint Account
ü  Minor Account
ü  Sole proprietor Account
ü  Partnership Account
ü  Company Accounts
ü  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:

ü  Computerized National Identity Card (CNIC) of the applicant
ü  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;


This category is further bifurcated into following sub-categories:
ü  Business Account
ü  Student Account
ü  Salaried Person
ü  Household Women

JOINT ACCOUNT;

Any number of persons can open a joint account. Every person is required to fulfill the same requirement as mentioned under the head of the individual account in the personal capacity.

SOLE PROPRIETOR ACCOUNT;


Ø  NTN No. – which should clearly mention the business name, client name and address of the business place
Ø  Request for the account opening on the Letter head of the business
Ø  Business stamp

PARTNERSHIP ACCOUNT;


Ø  NIC of all partners
Ø  Partnership deed attested by the Notary Public
Ø  NTN certificate
Ø  Form- C (if partnership is registered)
Ø  Rubber stamp according to following format                                                

COMPANY ACCOUNTS;


Ø  NIC’s of all the directors
Ø  Rubber stamp according to their designation
Ø  List of director attested by chief executive
Ø  Resolution of the board of director to open bank account (on bank format)
Ø  Form 29 duly attested by SECP:.

MINOR ACCOUNT;


Ø  CNIC of Guardian
Ø  Business/ Employment Proof of Guardian
Ø  Bay Form/ Birth Certificate duly original seen by Attorney holder
Ø  Date of majority of the minor should be mentioned on AOF & SSC
Ø  Only personal information of guardian on AOF. No information of minor on AOF.
Ø  No signature of minor on account opening documents
Ø  Title of account should          

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.




Ø  Resolution (Name & signature of authorized signatories along with CNIC numbers and operating instructions)
Ø  CNIC
Ø  By- laws
Ø  Registration certificate
Ø  List of governing bodies
Ø  Legal opinion
Ø  Approval form Area Manager and System Operations.

TYPES OF ACCOUNTS;

 

CURRENT ACCOUNT;


Here are some features of the current account offered at NBP
Ø  Non interest bearing checking account.
Ø  Minimum account opening requirement of Rs.10, 000 only.
Ø  Free debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan.
Ø  This account can be opened in foreign currencies also.

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.

Ø  Profit & Loss Sharing Saving Bank Account. 
Ø  Minimum account opening requirement of Rs.5, 000 only. 
Ø  No restriction on number of withdrawals and number of deposits.
Ø  Profit on PLS saving account is calculated on minimum monthly balance basis.
Ø  Profit on saving accounts is credited to the customer account on half-yearly basis. 

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. 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:

  1. ACCOUNT NUMBER:
Ø  Current Account                           
Ø  Saving Account                             
Ø  Royal Profit Account                    
Ø  Basic Banking Account                                 
Ø  USD Account                                                        
Ø  Euro Account                                
Ø  Pound Sterling Account              

3.  PERSONAL INFORMATION
4.  NEXT OF KIN
5.  ADDRESS FOR THE CORRESPPONDET
6.  CORPORATE ACCOUNT
7.  TYPE OF ENTITY
8. NATURE OF THE ACCOUNT
9.  CURRENCY OF ACCOUNT 
10. DETAILS OF THE TERM, NOTICE & CALL DEPOSIT
11. ZKAT DEDUCTION INSTRUCTION
12. INSTRUCTION FOR OPERATION OF ACCOUNT
13. INTRODUCER’S DETAIl
14. DECLARATION
15. TERMS & CONDITIONS GOVERNING THE ACCOUNT

 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
  2. SIGNATURE DIFFERNET FROM CNIC
  3. SIGNATURE SPECIMEN CARD
  4. ACCOUNT OF THE ILLETERATE PERSON
  5. APPLICATION FOR THE ON-LINE ARRANGEMENT FOR  CLEARING/TRANSFER/CASH TRANSACTION
  6. KNOW YOUR CUSTOMER (KYC)

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

Ø  PERSONALIZED CHEQUE BOOK:
Ø  BLANK CHEQUE BOOK:

  1. REISSUANCE OF CHEQUE BOOK
  2. CHARGES FOR THE ISSUANCE OF NEW CHEQUE BOOK
  3. LOSS 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

GOVERNMENT DEPARTMENT

Government Department is very important section of the Bank because it is responsible for any penalty imposed by SBP due to the negligence / non completion of work / books and balancing. All officers monitor all heads of Govt. Section for well in time reporting in monthly, quarterly, annual return to controlling office..

GOVERNMENT RECEIPTS;

Government receipts means collection of the following
Ø  Income tax
Ø  Property tax
Ø  Sales tax
Ø  Traffic challans
Ø  Court fine
Ø  Old age receipts

GOVERNMENT PAYMENTS;

Government payments include;

Ø  Salary payments
Ø  Pension Payments
Department of Government section receives all the provincial and central receipts.
NBP makes payments to following:
Ø  Civilian
Ø  Defense civilian pensioners
Ø  Retired officers of Armed forces
Ø  Retired officers of PAF and families

DOCUMENTS REQUIRED FOR THE PENSION PAYMENTS:


Ø  Pension payment order
Ø  No and date of CNIC
Ø  Two specimen signature, thumb and finger impression
Ø  Photographs of the pensioner
Ø  Pension book
Officer enters them in a ledger to keep permanent record.

DOCUMENTATION;


Ø  Disburser portion of the PPO is filed in serial No and kept in lock and key with accountant.
Ø  All particular of PPO are entered in PPO register.
Ø  The first payment is made to pensioner after proper identification. In case any clarification staff referred the pensioner to general accountant or Head office.

CLEARING DEPARTMENT


The basic function of clearing department is to provide services to customers in collection of their cheques of other banks, whether they are in city or outside the city.


TYPES OF CHEQUES COLLECTED BY THE CLEARING DEPARTMENT;

a)         TRANSFER CHEQUES
Transfer cheques are those cheques, which are collected and paid by the same branch of bank.

TYPES OF CLEARING
Clearing department deals with the two type of the clearance;
These are stated below:
1) - Outward clearance
2) - Inward clearancPROCEDURE OF CLEARING
 

NEXT DAY PROCESS



FOLLOWING REQUIREMENT FULFILL

Þ    Check all the stamp required
Þ    Check balance of particular account
Þ    Check the Drawer ‘signature
Þ    Check the cheque post dated or out dated
Þ    Check amount in words and figures
Þ    Advice received from issuing Branch
Þ    Payment stopped by the drawer


PROCESS OF CHEQUE RETURN (S.C)



                                                                                                                             
Commission charges (sample format)









Sr. No.
A/c No
Amount
Commission
FED
Postage
Total
Net Amount
1


50.00
3.00
75.00
128.00
128.00
2


50.00
3.00
75.00
128.00
128.00
3


50.00
3.00
75.00
128.00
128.00
4


50.00
3.00
75.00
128.00
128.00
5


50.00
3.00
75.00
128.00
128.00
6


50.00
3.00
75.00
128.00
128.00
7


50.00
3.00
75.00
128.00
128.00







0.00
TOTAL

0.00
350.00
21.00
525.00
896.00
896.00

CLEARING SECTION TABLES USED TO KEEP RECORD


.

cheques to the drawer’s account holding branch to clear the amount of the cheque. cities.

SUMMARY

At the end of the day our branch receives a fax from the State Bank of Pakistan Head Office Karachi. The debit and credit amounts given in the fax must match with the amounts in the clearing summary of our branch.
This summary contains the balances of clearing received and clearing delivered amounts.
At the end a hard copy of input table, ordinary inward, ordinary outward, responding entries, same day clearing, intercity clearing and summary are kept as record in the files.
                           

Recommendations:


  1. Regulatory authority is highly needed concerning the disciplinary matters.
  2. A committee of senior qualified expert staff should be physically present at bank to receive complains by customers and catch the guilty person red handed.
  3. Complain box should be such that no one can bring the compliant papers out of box.
  4. As only head office deals the pension, so this branch should provide facilities to specially old aged pension holders to increase its good will.
  5. Security cameras should be technically alright and latest.
  6. Branch must review its strategy whenever any new entrance in market is visible and whenever any product comes in market as substitute product of the products of NBP.
  7. NBP should introduce deposit mobilization products.
  8. A check and balance should be imposed on all employees
  9. A handsome amount of fine should be charge to the guilty employees.
  10. training session should be held at different intervals in a financial year to make employees more competent and get  a competitive edge overall
  11. Rules and regulations should be applied to all employees even to the top management in any way.
  12. Account opening, loan issuing and some other procedures should be more convenient and flexible.
  13. Make sure tat all employees follow rules and regulations

Reference & Sources used

National bank web site www.nbp.com.pk
Orientation books of NBP
www.scribd.com
Conflict management
Human relations
Organizational development
And customers of NBP

           

















Sr. No.
A/c No
Amount
Commission
FED
Postage
Total
Net Amount
1


50.00
3.00
75.00
128.00
128.00
2


50.00
3.00
75.00
128.00
128.00
3


50.00
3.00
75.00
128.00
128.00
4


50.00
3.00
75.00
128.00
128.00
5


50.00
3.00
75.00
128.00
128.00
6


50.00
3.00
75.00
128.00
128.00
7


50.00
3.00
75.00
128.00
128.00







0.00
TOTAL

0.00
350.00
21.00
525.00
896.00
896.00
Commission charges of ATM





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