Virtual University of Pakistan
Evaluation Sheet for Internship Report
Spring 2009
MISI619: Internship report (MIS) Credit Hours: 3
Marking scheme / Total marks / Obtained marksReport writing / 70 / 42.5
Presentation & Viva voce / 30
Grand total / 100
Name of Student: MUHAMMAD IMRAN
Student’s ID: mc060400994
Evaluation Date: ______
Supervisor: ______
Marking Scheme for Internship Report WritingMarks / Marks obtained
Prefatory part
· Title page
· Acknowledgement
· Executive summary
· Table of contents / 5 / 4.5
Introduction of the sector/organization
· Brief introduction of the organization’s business sector
· Overview of the organization
· Organizational structure / 10 / 7
Detailed description of internship program
· Plan of your internship program
· Training program / 10 / 6
Organizational analysis
· Structure of the MIS Department
· Functions of MIS Department
OR
· Structure of the department you worked in (Other than MIS)
· Feasibility Report of computerizing the department you worked in (Other than MIS) / 15 / 10
· Critical analysis
· SWOT analysis
· Conclusion
· Recommendations / 20 / 9
Internship Report Write Up / 5 / 3
Referencing and Annexure / 5 / 3
Total / 70 / 42.5
Different parts of the internship report are not in proper sequence as required.
You did not provide the critical analysis and conclusion.
You did not provide the overview of the competitors.
You have included irrelevant data in departmentalization.
Other comments have been mentioned in the report.
Internship Report on
National Bank of Pakistan
Main Branch Bahawalnagar
PRESENTED BY:
MUHAMMAD IMRAN
Class: MBA-MIS
STUDENT ID :
mc060400994
Session:
Spring 2009
Internship Date:
Nov 11th to Dec. 22nd 2008
Report completed:
June 27th 2009
VIRTUAL UNIVERSITY OF PAKISTAN
DEDICATION
I dedicate to my Dear Parents my respectable teachers whose assistance is always with me. And I personally do great respect by heart.
Acknowledgement
Here very thanks to Almighty Allah whose guidance helped me to be trained in a top class organization, NBP, as well as to complete this report in a very limited time.
My thanks also to young, dynamic, congenial, and qualified staff of NBP who never let me alone in different situations related to my internship. Without their humble help, it was not easy.I am thankful to the Bank Manager,Muhammad Arshad Nagra,NBP Nain Brach Bahawalnagar.He guide me during my intership from Nov.11th to Dec.22nd 2008.
Executive summary
This report is about my internship program with NATIONAL BANK. In this comprehensive report, I have discussed about every major aspect of the bank, which I observed and perceived during my internship program. In this report you will find the detail about the bank right from its incorporation to the current position. Along with it, the processes, policies and procedures of the bank are also discussed in detail.
As the main purpose of internship is to learn by working in practical environment and to apply the knowledge acquired during the studies in a real world scenario in order to tackle the problems using the knowledge and skill learned during the academic process.
In this report the detailed analysis of the organization has been done and the financial, technical, managerial and strategic aspects have been evaluated to analyze the current position of the organization.
This report also contains my perceptions about the employee’s satisfaction, motivation level and the working environment of the organization.
Table of contents should be on separate page.
TABALE OF CONTENTS:
Sr.# / Contents / Page #1. / INTRODUCTION / 6
2. / EVOLUTION OF BANKS IN PAKISTAN / 7
3. / PRESENT STATUS AND HISTORY / 8
4. / Banking Reforms 1972 / 9
5. / FINANCIAL POSITION / 12
6. / PRODUCTS OF NATIONAL BANK OF PAKISTAN / 15
7. / SAIBAAN SCHEME / 16
8. / FOREIGN CURRENCY / 17
9. / EXPORT DEPARTMENT / 19
10. / IMPORT DEPRTMENT / 19
11. / DIFFERENT SCHEMES CONDUCTED BY NBP / 21
12. / ORGANIZATIONAL STRUCTURE / 22
13. / Plan of My internship program / 27
14. / DEPARTMENTALIZATION / 29
15. / DEPARTMENTATION OF NBP BAHAWALNAGAR MAIM BRANCH. / 43
16. / General observation during Training Program / 46
17. / MANAGEMENT INFORMATION SYSTEM (MIS / 54
18. / Structure of the MIS Department / 57
19. / Functions of the MIS Department / 58
20. / SWOT ANALYSIS / 59
21. / COMPETITIVE ANALYSIS / 63
22. / SUGGESTION: / 65
23. / RECOMMENDATIONS / 63
24. / References / 74
1. INTRODUCTION
Definitions of Bank
“Bank”
"A financial institution, which deals with money and credit. It accepts
Deposits from individuals, firms and companies at a lower rate of Interest and gives at higher rate of interest to those who need them.”
A financial establishment which uses money deposited by customers for investment, pays it out when required, makes loan at interest, exchanges currency, etc.
J.W Gilbert in his principles and practice banking defines a banker in these words:
“A banker is dealer in capital or more properly, a dealer in money. He is intermediate party between the borrower and the lender. He borrows of one and lends to another”.
The American defined the term banker in a very broad sense as under:
“By banking, we mean the business of dealing in credits and by a ‘Bank’ we include every person, firm or company having a place of business where credits are opened by deposits of collection of money or currency. Subjects to be paid or remitted on Cheques or order, money is advanced or loaned on stocks, bonds, bullion, bill of exchange, promissory notes are received for discount or sale”.
Scope of Studies
As an internee in National Bank of Pakistan the main focus of my study research is on general banking procedures in one of the branches of NBP in MIS environment. These operations include remittances, deposits, advances and foreign exchange.
Similarly different aspects of overall of NBP are also covered in this report.
Research Methodology
The report is based on six weeks internship program in National Bank of Pakistan. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.
2.EVOLUTION OF BANKS IN PAKISTAN
There are different opinions that how the word ‘Bank’ originated. Some of the author’s opinion that this word is derived from the word ‘Bancus’ or Banque’, which means a bench. The explanation of this origin is attributed to the fact that the Jews in Lombard transacted the business of money exchange on benches in the market place; and when the business failed, the people destroyed the ‘bench’. Incidentally the word ‘Bankrupt’s said to have evolved from this practice.
Some of the authors are of opinion that the word ‘Bank’ is derived from the German word back, which means ‘joint stock fund’. Later on when the German occupied major part of the Italy the word ‘Back’ was italicized into ‘Back’.
In fact human left the need of bank when it begins to realize the importance of money as a medium of exchange. Perhaps it where the Babylonian who developed banking system as early as 2000 BC. At that time temples were used as banks because of their prevalent respect. During the rule of king Hamurabi (1788 – 1686 BC) the founder of Babylonians Empire, loans were started being granted for interest. The borrower has to provide guarantee or he had to pledge his goods or valuables. King Hamurabi drew up a code wherein he laid down standards rules for procedures for banking operations by temples and great landowners. Also in Greece, the temples were used as banks, where the people deposited their money and other valuables for safe custody and security. In Europe with the ‘revival of civilization’ (Renaissance) in the middle of twelve century, trade and commerce started expanding and this development compelled the business community to borrow the money from the Hebrew money lenders on high rates of interest and usury. Seeing the great demand, these moneylenders started organizing themselves and bank started up at the principle seaports of southern Europe. Soon Venice and Geneva became the most important money markets of the time and banking though different from its present form, flourished. What we know as ‘modern banking’ originated in the 14th century in Barcelona
National Bank of Pakistan (NBP) was established under the National Bank of Pakistan Ordinance 1949. The primary objective of NBP was to purchase jute from the growers in the former East Pakistan and also to perform the commercial banking functions in the country.
National Bank of Pakistan is now the biggest financial institution with assets totaling over Rs.310 billion with 1428 local and 23 foreign branches. The bank is the higher financer in agriculture and commodity operation sector.
As part of the academic requirement for completing MBA (MIS) Master Business Administration of the students are required to under go six/eight weeks of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration.
This report is about National Bank Pakistan. NBP was established in 1949 and since then, it has expended its network, becoming the largest commercial Bank of the country. It offers different products of services to its customers.
.
3.PRESENT STATUS AND HISTORY
National Bank of Pakistan maintain its position as Pakistanis premier Bank determined to set higher standards of achievements. It is the major business partner for the government of Pakistan with special emphasis on fostering Pakistanis economic growth through aggressive and balanced lending policies, technologically oriented branches.
The National Bank of Pakistan came into existence on 20th November 1949 under the National Bank of Pakistan Ordinance No.21 of 1949.It is a semipublic bank and functions like other commercial banks. Therefore it receives funds from the depositors and provides loans/credit facilities in all sectors including trade, industry and agriculture. It also functions as an agent of the Central Bank and operates the treasuries at places where no branch of State Bank of Pakistan exists. The National Bank of Pakistan was also nationalized, along with other banks, in January 1974. The Bank of Bahawalpur was also merged into this Bank.
MANAGEMENT
An Executive Board composed of six Senior Executives of the Bank and the President who is also the Chief Executive supervises the affairs and business of the Bank.
CAPITAL
The authorized capital of the Bank is Rs.2500 million divided into 100 million ordinary shares of Rs.10 each. After nationalization, all the shares held by persons other than the Federal Government or Corporations i.e., owned and controlled by the Federal Government was considered as transferred and vested in the Government.
BRANCHES
The Bank had a network of 1531branches in the country and 28 branches in foreign countries. These countries are as follows:
1) - United States of America
2) - United Kingdom
3) - France
4) - Germany
5) - Africa, Middle East Region
6) - Bahrain Obu
7) - Asia Pacific Region
8) - Japan
9) - Republic of Korea
10) - Central Asian States
11) - Bangladesh
12)-Peoples Republic of China
13) -Pakistan.
The main of the study in hand is together relevant information to compile internship report on National Bank of Pakistan.
· To observe, analyze and interpret the relevant data competently and in a useful manner.
· To work practically in an organization.
· To develop interpersonal communication.
4.Banking Reforms 1972
After the assumption of office by a new government in 1971, may 1972 different reforms were introduced to make the banks more responsive to the requirements of economics growth with social justice. The reforms aimed at bringing about a more purposeful and equitable distribution of bank credit, improving the soundness and efficiency of the banks, and securing greater social accountability of the banking system as a whole.
The role of the banking system had been truly spectacular in mobilizing savings of the community and meeting the credit needs of the economy. But at the same time, the banks had generally neglected their role in promoting social justice and had failed to play an effective role in ensuring a wider and more equitable dispersal of the benefits of economic growth. In particular the inter locking of ownership with commercial and industrial interests had led to the misuse of bank resources. There was a heavy concentration of credit in big accounts and in urban area. Credit facilities for agriculture, small business, newly emerging exports and housing had remained obviously inadequate while the banks indulged in capital financing in few selected business sectors and issued guarantees on behalf of favored clients, term clients, term financing facilities for industry were wholly absent.
Under the banking reforms introduced in May 1972 the state bank of Pakistan was accorded wider powers. It was authorized to remove directors or managerial personnel, if necessary and supersede the board of directors of a banking company and appoint administrators during the period of such super session. It was also empowered to nominate directors on the board of every bank. As regard bank directors, it was provided that anyone defaulting in meeting his obligations to bank would forfeit his directorship. Moreover, it was laid down that no person could serve as director of a bank for more than six years continuously. Each bank was required to have a paid up capital of not less than 5 percent age of its deposits to be progressively build up to 10 percent age over a period of time. The banks were also required to transfer 10 percentage of their profit their reserves every years after the reserve became equal to the paid up capital. With a view to diversity the ownership of the banks, the banks were required to raise new capital from the market. Unsecured loans to directors, their families or firms and companies, were totally prohibited.
The bank reforms also brought about the establishment of new institutions to achieve new objectives. A national credit consultative was setup under the supervise of the state bank with representation form the government and the private sector. It was assigned the task of determining of economy’s annual credit needs within the safe limits of monetary and credit expansion with reference to the annual development plan. Such a credit plan was to cover the public and private sectors. Alongside the National credit council and Agricultural Advisory Committee was formed to allocate agriculture credit for various purposes, to coordinate the operation or the agriculture credit agencies and to oversee the flow of credit to the designated targets. A standing committee on exports in general and the new emerging exports in particular, was also established. With a view to encourage the banks to extend credit to small borrowers, a credit guarantee scheme was introduced under which the state bank under took to share any bonfire losses incurred by the commercial banks in case of small loans of advances to agriculture.