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Report writing format

Report Writing Format

Here are the main sections of the standard report writing format:

1. Title Section – This includes the name of the author(s) and the date of report preparation. 
2. Summary – There needs to be a summary of the major points, conclusions, and recommendations. It needs to be short as it is a general overview of the report. Some people will read the summary and only skim the report, so make sure you include all the relevant information. It would be best to write this last so you will include everything, even the points that might be added at the last minute.
3. Introduction – The first page of the report needs to have an introduction.  You will explain the problem and show the reader why the report is being made. You need to give a definition of terms if you did not include these in the title section, and explain how the details of the report are arranged.  
4. Body – This is the main section of the report.  There needs to be several sections, with each having a subtitle.  Information is usually arranged in order of importance with the most important information coming first. 
5. Conclusion – This is where everything comes together. Keep this section free of jargon as most people will read the Summary and Conclusion.       
6. Recommendations – This is what needs to be done. In plain English, explain your recommendations, putting them in order of priority.
7. Appendices – This includes information that the experts in the field will read. It has all the technical details that support your conclusions.

Remember that the information needs to be organized logically with the most important information coming first. 

Security Issues in E-Services ( Literature Review)

Literature Review

The E services have no doubt been growing quite immensely but it has also been accompanied with problems throughout its evolution. Any problem in any aspect of the E services maybe it be authentication, security or any other malfunction will cause a problem for the customer (Beatty, Holloway, 2003). Parasuraman et al (2005) developed a scale named E S Qual scale. This scale had everything that covered the E services. The scale was divided into 4 dimensions and 22 statements. The four dimensions were system availability, privacy, efficiency, and fulfillment. Culnan and Armstrong (1999) in their research points out two possible privacy issues that customers would think over when they are availing E services. The first privacy issue would be the unauthorized access to the systems private data due security loopholes. The second is the re use of the users private data for other purposes without taking their consent.

            Cranor and Reagle (1998) in their research have suggested that to solve the privacy issue of E services, both law and technology has to be combined. Security problems will keep occurring despite the fact that more and more solutions has been designed to eliminate them as Graves and Curtins (2000) have discussed in their study which suggested that some E banking systems stores the password of users in Cookies which can easily be cracked and took over by hostile websites. Schneier (2001) also argues that each and every system has security loop holes and even updating the systems constantly and following all security protocols might still result in security breaches. Fernandez (2001) in his study discovered the users of the E services are mostly concerned with three major issues system security loopholes, privacy, and scam companies running businesses online.

            Housley et al (2002) in his study suggested the use of Public key infrastructure for the purpose of security. It includes two keys named as public key and private key, the former is used for the sole purpose of encrypting the data and is available to the world whereas the latter is used for decrypting the data. Winner (2002) suggests that all the E services system should be operated using a firewall and all unnecessary services like email ftp etc should be removed from the website of the company. Roberts (2002) and Neyses (2002) have found in their research that most of the security issues surrounding E services are not from the merchant of the security loop holes in the system rather it is mostly due to the user using the computer and browser to authenticate them. Hackers can gain access to the user’s pc and gain access to confidential data like passwords and credit card numbers etc. Dawson and Festa (1998) suggested the use of HTTP cookies as mean to identify the user passwords but cookies where provides a good base for security but not yet as good as compared to the public key infrastructure. Bishop (2003) concludes that organizations must have a proper process of allocation of duties and responsibilities for the purpose of security. He thinks that organizations must devise policies and rules for the security of the data so as to prevent the leakage of private information regarding the users as well saving the data from getting corrupted.

            Neuman and Medvinsky (1996) observed that most of the payments for the E services are SSL protected. Davies (1997) argues that most users or customers consider privacy as a legal right and they won’t indulge in using or availing E services until and unless they are fully satisfied that their data will be kept private. There has been a great amount of work done on the topic E Services security issues and privacy issues with the development of the concept and its extensive use. Different cultures has different attitude towards the privacy of data. Research by D’Arcy et al (2009) shows that there are two types of threats to privacy of user data in E services which are internal and external threats and 50 to 75 percent of the privacy security issues takes place due to the internal threats. Most of the E services providers use SSL based secure systems with a server authentication to authenticate users to their accounts Freier et al (1996). Jiang (2001) developed a coprocessor IBM2000 in which the users can install any third party applications. When the users login to their account their SSL session goes into this co processor thus identifying them as the holders of the account and maintaining the security of their private data. Cheung and Lee (2006) in their research concluded that most of the customers would not avail E services just because of the privacy concerns. Cassidy and Chae (2006) in their research found out that most if customers are hesitant to avail E services because they think their email address and personal information could be used without their consent for marketing or some other illegal purposes. They also fear that their credit card numbers might be stolen in case of Scam companies.

            According to Jensen et al (2005) most users of E services tend to trust their provider if they have an online privacy policy on their website. Bellman et al (2004) believes that the government rules and regulations regarding online privacy play a major role in consumers availing E service. Clarke (2001) in his paper concluded that Privacy enhancing technologies also knows as PET’s have reduced the privacy issues in E services and has enhanced the trust of the customers. Harris Poll (2000) performed a survey whose result suggested that almost 40 percent of the E services customers were anxious about how their personal data would be used whereas 57 percent of the users demanded for a proper law to collect and use private data. In another survey conducted by Light (2001) 92 percent of the total respondents answered that company never keeps their data private even though they promise to. Adams et al (1997) in his research observed that most of the privacy risk and issues takes place because of the weak passwords that users provide which are prone to cyber attacks. Roberts (2002) is also of the view that almost all of the privacy issues emerge due to the users rather than E services providers. The user’s computers are more prone to cyber attack because of the minimal security making it possible for the attackers to hack the personal data and other private information creating privacy risks. He suggests that the users keep their PCs up to date with latest anti viruses and firewalls and use encryption software so that their data is safe from cyber attackers and hackers.

Uniqueness and deception are ever increasing as the attractiveness of online shopping produces anxiety. The theory of security of ten traded next to expediency gives well-built purchaser verification practice. It gives better defense and therefore advantage customer’s verification. It examines how stages of verification, safety and economic danger factors has an effect on insight and assessment of verification scheme in two circumstances (Egelman, S., Tsai, J., Cranor, L.F., Acquisti & A., 2009).

Safety or Security is one of the most important issue which affects users choice to supermarket online. Nevertheless a lot of internet client steer clear of online shopping because of the card deception, solitude factors, non release risk, post pay for repair and so on. But contract safety on the online shopping has conventional concentration. If there is safety in regard to online card usage, it will increase the online shopping traffic even more. In nineteen ninety five UK introduced scheme without any charges for electronic shopping and presently in Europe and Singapore began conducting electronic businesses. (Bhatnagar&Ghose,2004).

Verification problems can give rise to a lot of problems including customer dissatisfaction. A number of confirmation events are fairly simple and as a result have needs of smallest efforts on the consumers’ conclusion, whereas further actions grip severe practices, which may result in more problems. The problem, however, is that such high stage of security measures may not forever be valued by clients because the latent advantage to be increased from advanced height of security can be outshined by the shortage of expediency. Investigation has shown that a user will do complete research about verification problems before deciding to use online services (Weir et al, 2009).

There are some circumstances which may prove helpful or unhelpful for the customer, additional difficult verification events leaning in the direction of high-level refuge and protection? Investigating behavior on growth of work of fiction verification events has been enlightening (DeAngeli et al., 2005; Kuber& Yu, 2010).

In another study conducted by Liebermann and Stashevsky (2002) research has recognized aspects that outline the security usefulness and trade-offs in online purchaser confirmation. It advises to observe causes related with monetary risk, which engages in recreation of input role in consumer’s choice in the background of online shopping.

In other study that target spot roots by security-convenience in online shopping are able to be even further selective after it approaches to buyer substantiation. To decrease fatalities for clientele and for themselves, a lot of online sellers use events for validation of client uniqueness. These events are planned to prove that creation acquiring is an endorsed consumer of the imbursement technique (Cline, 2004).

According to Forsythe and Shi (2003) Ko et al., (2004) Pavlou (2003) monetary hazard, separate one’s biased thought about suffering a monetary loss at the same time as well as the urge of using online services. It is measured as one of the key rudiments of professed risk in electronic import. The moment actions expected for greater safety measures levels of anti-fraud safety, which will possibly be valuable to customers.

This study examined that supposed economic risk is unenthusiastically linked with consumers’ purpose to fit into a place in online shopping and this propensity has been found in the middle of both beginner and knowledgeable customers and the time it comes to be perceived financial danger that can potentially result in financial victims (Keating et al., 2009).

Rabkin (2008) suggested to approach into the security-convenience concerning customer events in online shopping. To be precise, checking probable self-control by factors related with monetary risk, considering whether and how special possessions of safety levels instantiated by verification skills on consumers’ estimate of the system would depend upon professed economic risk. It also examines two diverse types of verification events: confront inquiries and card confirmation systems.

This study examined to see how these answers will interpret to older regulars mostly those who are less knowledgeable by or be likely to sense better uneasiness by means of online shopping when compared with the younger generations (Morris et al., 2007).

Keith, Shao, Steinbart and J(2007)analyzed that the security of E shopping could affect the purchasers fulfillment. In addition, it focused one pay for online shopping display place, it also considers the role of repute coordination in manuscript, calculated, and sinking fraud that search out more buyers’ self-belief then getting better in the dealings readiness which points towards the retailers audit device of the online shopping display place which is a significant device to promote customers trust, and then get better. Though when the barrier to entry constructs too far above the ground it might generate unpleasant consequences of imperfect draw for purchaser.

A research suggested that sample of security-convenience operate, brilliant customer observation and admiration of verification equipment may contrast depending on the individuality of economic threat reasons occupy in the online business procedure (Biswas, 2004).

According to Hofacker (2001) available experience www.acnielsen.com, which one of the human race inhabitants is shopping online , cultivate October 2005, six hundred twenty seven million citizens encompasses online shopping. According to a similar report British and Germans are on the peak of the registration in Online Shopping.

This study observed that maintaining faith in the E shopping with advanced skill and recurrent online shopping to the internet life form enables as a dependable shopping conduit.

It was about individual presentation of person’s optimistic or unenthusiastic evaluation. It is left over to be seen how these results determines translation to research customers predominantly persons who are not as much of skilled or be apt to feel better uneasiness with online shopping when contrasted with the immature production (Morrisetal.,2007).

One previous research suggests business reproduction has become an average stand for reorganization production stream and enlargement artifact outreach. This was given much more importance and stress by a number of countries in mounting vigorous E Shopping architectures modified to their economical communal scheme. A striking in this point of view case study was the empire of Saudi Arabia, particularly known for its importance on restricted, local and religious civilization. At the second, with a brilliant intensification pace in Internet connectivity, the Kingdom is vigorously touching towards major acceptance of E Business scheme. (Tain, 1999).

            Roselius (1971) observed that E Shopping obstruction characterized India, Armenia, Kenya and Argentina. These counties have built incomplete Internet conveniences, a lack of struggle in intercontinental phone booth transfer that through admittance to the global arrangement is costly, a lack of intra district communications, and an uneven diffusion of the handset in the city as opposite to pastoral, more inhabited areas.

Another study in the context of South Korea recognized a major hurdle in acceptance of online shopping and it was the disbelief and loss of faith of customers in online traders. There was a great fear that merchants would not deliver a product after receiving the online payment. In central and eastern Europe, online stores may have some purpose and communications in delivering the best quality product on time after receiving the online payment as they promise (Warner, 2007).

Jun, Yang and Kim(2004) conducted a study which examined effect on customers discernment of online transaction and examined eminence and their fulfillment. The detailed objectives of this research were to classify key basic dimensions of online retailing service eminence as seeming by online regulars; evaluate the contact linking the examination worth proportions famous in advance and the online clientele‘ perception of in general service quality. Examining the relationships between the service quality dimensions and the online clientele’s overall pleasure; and calculating the connection between online clientele professed taken as a whole and examine dominance and their stage of approval.

Keating, W., Quazi, and Kriz(2009) evaluated the approach of online customer livelihood in Bangkok and London and concluded that variables influences their performance and investigating found that website design, website reliability/fulfillment, website customer service and website safety/solitude were the four main issues which powers customer insight of online shopping. These buyers had dissimilar evaluation of website intent and website dependability/completion but alike evaluation of website security/solitude issues, which involves the security/retreat issues which are significant to nearly all online purchasers.

Kuberand Yu(2010) analyzed that insight towards online shopping examined in the University of Greek’s Students attitude. The critical purpose of this study was to inspect the perceptions of Greek university scholar’s, adopters and non-adopters of online shopping in conditions profile of demographic, prospect of online provisions, compensation and troubles related to online payment.

 

 

Allied Bank MBA internship Report

www.vuaccess.net/2011/06/allied-bank-internship-report-2010.html
www.scribd.com/shani_striker/d/54208721-Alied-Bank-Final-Report
 www.vuaccess.net/2011/05/internship-report-on-allied-bank-of.html

National Bank of Pakistan MBA Final Report

ORIGIN OF BANKING[1]

There are different opinions about the origin of the word “Bank”. According to some authors, the word “Bank” is derived from the “Banco” or “Bancus” which means a bench. It was because Jews merchants in Lombardy transacted their business of money exchange on benches. If the business of any merchant failed, his “Banco” was destroyed by the people. From this practice, the word “bankrupt” is evolved. According to another opinion, this word “bank” is derived from the German word “Back” which means joint stock fund. Later on, this word “back” was Italianized into “Bank” or “Banke”.

HISTORICAL BACKGROUND OF BANKING IN PAKISTAN

The history of banking system in Pakistan dates back to independence of Pakistan in August 1947 when various banks transferred their Head Quarters and funds to areas likely to fall in India.

According to various books there were 3106 branches of Indian scheduled banks in the undivided sub continent as on 1^st March 1947 out of which only 487 branches were located in areas presently constituting Pakistan. However, the number of scheduled banks drastically declined to 195 from 487 by 30^th June 1948.

At the time of partition there were only two banks having the honor to be the first commercial banks of Pakistan, namely Habib Bank Ltd, which was set up in 1941 with its Head Office in India and the Australasia Bank Ltd, which was established in 1944 with its Head Office in Pakistan.

After the partition, an expert committee was set up and this committee recommended that the Reserve Bank of India being the central Bank of the undivided India should continue to function as Central Bank of Pakistan and the Indian currency notes would continue to be legal tender in Pakistan till 30^th September 1948. Subsequently it was set up and started functioning from 1^st July 1948.

Thus the history of Banking system in Pakistan started with the establishment of the State Bank of Pakistan which was inaugurated by Quaid-e-Azam Mohammad Ali Jinnah on 1^st July, 1948. Consequently three banks were established which include Muslim Commercial Bank Ltd., Bank of Bahawalpur in October 1948, and National Bank of Pakistan in 1949.

 

HISTORY OF NATIONAL BANK OF PAKISTAN[2]

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 Bank 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 nature of responsibilities of the Bank is different and unique from other banks/financial institutions. The Bank acts as the agent to the State 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 various phases through which the bank went have been discussed in a sequence below:

Formative Phase 1950’s

When NBP was first formed it had authorized capital of Rs. 60 million.  In 1950 shares of the bank were also floated and taken up. In 1951 NBP had started foreign exchange business.  The ordinance that was passed at the time of inception of NBP was amended to include ordinary commercial banking business as well. In 1952 it was felt that the development of NBP was so immense that it should be considered as the agent of State Bank of Pakistan.  Thus by May of 1952 NBP had taken over the Government treasury work from the former agent, Imperial Bank.  The expansion of NBP was quite apparent by 1959 when it had 129 fully functioning branches as compared to only 17 branches in 1950. 

Period of Expansion 1960’s

After the quick growth of the 50’s, NBP worked to establish itself as a sound and stable bank in the 60’s.  The expansion efforts were put into force during these years and marketing efforts were made to target specific market segments.  For example NBP directed its attention towards popularizing schemes among school and college students, industrial workers, and ladies.  Under the School and College Banking scheme introduced in 1962, all branches of NBP performed School Banking in the premises of selected schools of the country. By December 1969 NBP had 720 branches, 713 at home and 7 in foreign countries. 

Period of Organizational Development: 1970’s

The 1970’s witnessed the nationalization of Pakistani commercial banks operating in the country.  On January 1, 1974 National Bank of Pakistan along with 13 other scheduled Pakistani banks was nationalized by the promulgation of the Banks Nationalization Ordinance 1974.  Shares not formerly held by the Government were acquired from the private holders after compensating them. 

The decade of the 70’s saw major changes in NBP.  In 1972 there was reorganization in the top management structure of the bank.  This structure had remained unchanged since the inception of the bank and had originally been inherited from the old Imperial Bank of India. 

Period of Consolidation: 1980’s

On February 10, 1980 the Government of Pakistan announced a three year plan for the implementation of an Islamic Economic System.  The institutionalization of Zakat and introduction of interest free banking were the two most important measures directed to Islamize the economy. The system was introduced by the nationalized commercial banks with effect from January 1, 1981.  National Bank of Pakistan evolved and introduced a wholly separate and comprehensive procedure for banking under this system from branch level to Head office. 

Along with development activities of the bank, consolidation of branch network was pursued.  NBP decided to delegate administrative and financial powers to Principal Offices and Zonal Offices. 

Challenges and New Initiatives: 1990’s-2003:

Due to the expansion in branch network, NBP has been able to take services to a much larger number of Pakistani’s all over the country.  Today it has more than 6 million accounts. It maintains a presence in all the major financial centers of the world through its 23 overseas branches and 5 representative offices. 

In 1995 NBP became the first bank in Pakistan with a deposit base which crossed the Rs. 200 billion mark to become the largest financial institution in the country.  Total deposits of the bank have risen to Rs. 362 billion by end December 2002.

NBP continues to render active help in the provision of services like Hajj services, collection of utility bills, paying of pension to central/provincial government pensioners, as well as to civilian military pensioners and retired army personnel.  HHHHHHHHHfgfgfgfgfgfgfgfgfgfgfgfg

Vision Statement[3]

Human Capital – The Way Forward

Mission Statement

“To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our core values”.

ORGANIZATIONAL OBJECTIVES:

All the objectives of the National Bank of Pakistan are compatible with the mission statement of the bank. As a business organization its main objective is profit maximization, the only yard stick used for measuring performance. NBP tries to maximize its profits by concentrating on two activities i.e. enhancing customers’ deposits, and increasing advances to the borrowers.

To Increase Deposits

Presently tough competition is experienced in every field, and the banking sector is no exemption to the rule. Whether the bank is Pakistani, Private, Foreign or Nationalized, competition is there. In the competition NBP has the goal to achieve the greatest possible amount of deposits. The tool used by the bank in order to increase its deposits was to provide the best of facilities to their customers.

Extension of Loans                                                                                           

The profitability of a bank greatly depends upon the amount of credit extended to the people. The loans provided by NBP accounts for the major source of its profit. The mark

up charged by the bank varies with the type of loan issued to the customer; the terms and conditions of the loans are negotiable depending upon the relationship between the customer and the bank, the purchase for which the facility is offered, and of course on the security offered for acquiring it.

THE INSTITUTIONAL APPROACH

The unique role of NBP in Pakistan’s financial sector confers on the institution a dual responsibility to be a commercial bank in its own right and at the same time, as a trustee of public finances, to act as a custodian of the public interest. The continuing validity of this role means that the kind of responsibility assumed by the National Bank of Pakistan is unlike any other financial institution. As the only institution of its kind, its performance and operational direction need to be reflected in an ethos of productivity, efficiency, flexibility and quality of service both to the individual customer and to the nation as a whole.

 

CORPORATE CULTURE

National Bank of Pakistan, after its pure commercialization, focused its eyes on the corporate sector and initiated an ambitious and farsighted Corporate Culture Change Program in collaboration with Price Water House (U.K.) and AF Ferguson & Co. in 1995. In order to change the bank’s posture from reactive to proactive, four major areas had been highlighted for concerted plans of actions.

Personnel-Human Resource Management Plan.

Operations and Strategic Management Plan.

Marketing.

Technology-Information Technologies Acquisition Plan.

REFERENCES

National bank of Pakistan, (2002). Annual Report. Karachi.

http:// www.nbp.com.pk

Siddiqi, Asrar.H. (1998). Practice & Law of banking in Pakistan. 6^th edition. Karachi: Royal Book Company.P-1.

GENERAL OUTLOOK

After the elimination of Pakistan Banking Council, each bank was put under the supervision of an independent board of directors. Since the new organizational structure of the bank, National Bank of Pakistan constitutes a board of directors and an executive committee as the governing bodies. The Head office is operationally in charge of central affairs including the delegation of powers and authority to 29 Regional offices all over the country. These Regional Headquarters direct the functions of the Regional branches and 12 Corporate Branches.

Board of Directors nominates the members of the executive committee which designates the Regional Heads. A general view of the structure is shown in the organizational chart on the following page.   

BOARD OF DIRECTORS[4]

The members of the Board of Directors of National Bank of Pakistan are as follows:

Syed Ali Raza (Chairman & President)

Dr. Waqar Masood Khan

Kamran Y. Mirza

A. Razzak Tabba

Rizwan A. Kehar

Qazi Faiz Isa

Sheikh Humayun Sayeed

ORGANIZATIONAL CHART OF NATIONAL BANK OF PAKISTAN

HEAD OFFICE

Head Office of the National Bank of Pakistan is situated at Karachi, the industrial capital of Pakistan, from where it controls all the affairs of the bank. The President of the bank chairs Head Office. A secretariat is also working at the Head Office level for the assistance of the president. The secretariat includes one Senior Executive Vice President as Advisor to the president.

Head Office is rather a big body with a huge task. For smooth functioning of these matters, the whole head office is divided into twelve Departments & Groups. Each Department or group is under the control of a Senior Executive Vice President and Group Chief. The various departments/groups coming under the Head Office Management are illustrated in the chart below.

HEAD OFFICE MANAGEMENT STRUCTURE

 

DOMESTIC NETWORK[5]

The domestic network of NBP consists of 29 Regional Offices, 1,189[6] branches and 4 subsidiaries. The domestic network of NBP has been shown in the map:

NBP’s DOMESTIC OPERATIONS

Subsidiaries

The four subsidiaries of NBP are as under:

National Discounting Services Ltd.

Taurus Securities Ltd.

National Bank Modaraba Management Company Ltd.

National Agriculture & Storage Company Ltd.

OVERSEAS NETWORK[7]

The Overseas network of National Bank of Pakistan consists of 15 Overseas branches, 4 Representative Offices and 1 Subsidiary in Kazakhstan. The overseas network of NBP is shown below in the map:

                        NBP’s OVERSEAS NETWORK

Overseas Branches

The Overseas branches are situated in the following countries:

i)          USA                            2

ii)         Germany                     1

iii)        France                         1

iv)        Hong Kong                 2

v)         Japan                           2

vi)        South Korea                1

vii)       Bahrain                        1

viii)      Egypt                          1

ix)        Bangladesh                 1

x)         Kyrgyzstan                  1

xi)        Turkmenistan              1

xii)       Pakistan EPZ              1

Representative Offices

The four Representative offices are situated in USA, People’s Republic of China, Uzbekistan and Azerbaijan.

 

CORPORATE BRANCHES

Despite being the premier commercial bank of the country the impact of NBP on the corporate banking sector has been marginal. The concept of corporate branches has now been made an integral part of the bank’s operational thrust. It aims at providing optimum performance and ‘one-stop shop’ service to the bank’s corporate and high network

clients. The concept of corporate branch is based on a package of services aimed at full customer satisfaction across the entire spectrum of banking and financial service needs.

The client is enabled to accomplish all his banking and financial requirements under one roof and with one contact. In this regard the functions of the corporate branch will revolve around an account/relationship officer.

REFERENCES

Basit, Abdul. (2002). An Internship Report on NBP City Branch.

http:// www.nbp.com.pk

National bank of Pakistan, (2002). Annual Report. Karachi.

INTRODUCTION

The progress of a countries performance, especially a developing country is heavily dependent upon the dynamic growth of its industries, trade and commerce, as well as agriculture. NBP plays a pivotal role in ensuring the proper employment and distribution of funds for rapid, sustained growth in all these sectors of vital importance. Also, the indicators which mainly reflect the high quality of NBP’s management are its prudent financing decisions, proper control of financing and prompt recovery of bank’s dues, as per borrower’s commitment / repayment schedule.

Keeping in view all these factors, SBP lays down the regulation / guidelines of credit policy and within this broad framework, NBP develops its own individual financing strategies and policies.

Principles of Financing

Basically, there are six principles, which must be duly observed while advancing money to borrowers.

Safety:

It covers the elements of character, capacity, capital, collateral and condition. It means taking all the risky factors into consideration and trying to hedge the bank from any possible financial loss.

Liquidity:

Covering the element of capability to liquidate or repay on maturity and also prior to the maturity, in case of need. It is an utmost important duty of a banker to assess the financial position of the burrower i.e. if the party/client is financially sound or will be completely dependant on the finances of the bank because a party/client with a shaky financial position can be a greater risk to the bank.

Term or Period of the Finance:

The facilities granted should be for a predetermined period of time, which would depend on whether the bank is offering short, medium, or long term facility depending upon the purpose of financing.

Dispersal:

The lending portfolio should be as wide-based and diversified as possible in order to spread the risk.       

Remuneration:

Pricing the loan according to the risk undertaken and the ancillary business income committed is very important in order to ensure that optimum revenue is generated from the advances.

Suitability:

Purpose for which credit is extended should be lawful, and conform to the policies and imperatives of the bank, as outlined in its credit policy guidelines.

The 5c’s that are a must to be assessed before considering a customer are explained as follows:

CHARACTER

The loan officer must be convinced that the customer has a well defined purpose for requesting the bank credit, and has a serious intention to repay.

In character the banker looks for the Customer’s Integrity, Purpose of loan, Customer’s obedience to law, Credit rating, his loyalty to nation, his environment, Intention to repay, Customer’s personal habits, Customer’s business code of ethics, his keeping of words. When a loan officer is satisfied with these above conditions, he recommends the loan after giving due consideration to certain other factors addressed below.

CAPACITY

The loan officer must be sure that the customer requesting credit has the authority to request a loan and the legal standing to sign a binding agreement. The customer characteristic is known as the capacity (authority) to borrow money. The banker here checks the customer’s past payment record, experience of other lenders with this customer, purpose of loan, customer’s track record in forecasting, credit rating, presence of consignors or guarantors of the proposed loan.

CAPITAL

Does the borrower have enough available cash (capital) to repay the loan? The loan officer satisfies himself in respect of the loan applicant’s past earnings, dividends and sales record, Adequacy of projected cash flow, Availability of liquid reserves, Turnover of payables, receivables and inventory, Capital structure and leverage, Expense controls, Coverage ratios, Recent performance of borrower’s stock and P/E ratio, Management quality, Content of auditor’s report and statement footnotes, Recent accounting changes

COLLATERAL

In assessing the Collateral aspect of a loan request, the loan officer must ask about the ownership of assets, age of assets, vulnerability of assets to obsolescence, liquidation value, degree of specialization in assets, liens, encumbrances, and restrictions, leases and mortgages issued, Insurance coverage, Guarantees and warranties issued, Bank’s relative position as creditor, Lawsuits and tax situation, Probable future financing needs.

CONDITION

The loan officer while assessing a loan request must also take into account those aspects which come under the environmental conditions head like Customer’s position in industry and expected market share, Customer’s performance vis-à-vis comparable firms in  the industry, Competitive climate for customer’s products, Sensitivity of customer and industry to business cycles and changes in technology, Labor market conditions, Impact of inflation on customer’s balance sheet and cash flow, Long run industry outlook, Regulations, political and environmental factors.

TYPES OF CREDIT

On the basis of funds involved credit can be categorized as fund, and non-fund based. Fund based financing involves immediate disbursement and out flow of funds. Here the funds are provided to the customers upon sanction of the respective credit lines by the bank and fulfilment of bank’s conditional ties and formalities, while the non-fund based facilities are contingent facilities such as letter of credits, and letter of guarantee. Credits extended to the clients are also classified on the basis of duration of facility as follows[8]

Short term – Up to 1 year duration.

Medium Term – Up to 3 years

Long Term – Above 3 years

Types of Advances

LOANS, ADVANCES & FINANCES

Fund Based Finances

 

Non-Fund Based Finances

 

Running finance                                          Letter of Credits

Demand finance                                          Letter of Guarantees

Cash finance

TYPES OF ADVANCES OFFERED BY NATIONAL BANK OF PAKISTAN

NBP Credit department deals with all the advances, which are made to the customers. Advances are important for the banking business because it gives the bank interest on the amount loaned. NBP is also very active in advancing loans to customers, thus helping the economy of the country in its development. It provides the following finances:

Running Finance

This is a type of Finance which meets the day to day financial requirements of the business. The amount is transferred to the debtor’s current account and can be withdrawn through cheques. The limit for this type of finance is Rs. 35,000 and the maximum period which it is extended is one year, and can be renewed by a new sanction. Repayment is on discretion of the customer to repay in lump sum or in periodic instalments.

Secured Running Finance

It is also called overdraft. In such type of finance a customer is authorized to borrow up to an agreed amount in excess of his bank balance. The NBP usually provides this facility to its customers. The time period for this type of finance is less than one year. The mark up is paid on monthly basis and the principal amount is repaid at an agreed date(s).

Cash Finance

Cash finance is also called working capital finance. It is a short-term credit facility. Probably the most popular form of providing funds to the clients in the banking sector is the Cash Finance system or traditionally known as Cash Credit. In this, the bank lends money to borrowers against tangible security. The total amount of loan, which is granted, is not paid in one instalment. The borrowers have to pay mark-up on the amount borrowed. Cash finance is obtained either by

Hypothecation of stock: When goods are not physically handed over to the bank as security for loan advanced, but the bank has a lien over the goods through the letter of hypothecation.

Pledge: When goods are physically handed over to the bank as security for loan advanced.

Borrowers prefer this type of facility because they have to pay on amounts actually utilized. The time period for this type of finance is normally one year but also depends on the manufacturing cycle of the organization.

DOCUMENTS REQUIRED UNDER CASH FINANCE

Against Pledge

Application/agreement with the customer for opening cash finance account.

IB 6 (revised)

IB 26

IB 12  (Appendix )

Letter from customer authorizing the bank to debit salaries of godown staff,   insurance premium and other incidental charges to his account.

Insurance cover together with premium paid receipt.

Against Hypothecation and Third Party Guarantee

Application/agreement with the customer for opening cash finance   account.

IB 6 (revised)

IB 12

IB 29

Letter from customer authorizing the bank to debit salaries of godown staff, insurance premium and other incidental charges to his account.

Insurance cover together with receipt of premium paid.

Letter of hypothecation

The controlling officer may also require the client to submit other documents.

DEMAND FINANCE

Initially they were called “Loan ordinary”. When a customer borrows from a banker a fixed amount repayable either in periodic installments or in lumps sum at a fixed future times, the amount of loan is placed at the borrower disposal in lump sum for the period agreed upon, and the borrowing customer has to pay interest on the entire amount. The borrower gets a fixed amount of money for his use, while the banker feel satisfied in lending money in fixed amounts for definite short period against a satisfactory security.

Demand Financing Against Gold Ornaments

Gold finance/loan is a type of demand finance being offered by NBP to a large number of customers. Demand financing against the security of gold ornaments under State Bank of Pakistan scheme for Financing Small Business/Industry or otherwise may be made to borrowers known or introduced to the Bank by constituents, in multiples of Rs. 100/- with a minimum of Rs. 1000/-.reference  The rate of valuation of gold and the gold ornaments will be advised to the branches by Head Office from time to time keeping in view the rise or fall in the market price of gold after providing for the necessary margin. The valuation of the gold ornaments must be based on the weight and fineness of the gold contents only. The rate per 10 grams will be regulated by the fineness of the gold and will be expressed to the nearest rupee. It must not exceed the maximum rates laid down from time to time by the Head Office.

Documentation for Financing against Gold Ornaments:

IB 6A

IB 12

IB 26

Industrial Small Finance

This Type of Finance is for industrial owners only, and is usually for expansion purpose. The limit of this type of finance is up to 3,000,000/- Securities demanded against this type of finance are immovable properties or against stock of raw material and finished goods. The time period for this type of finance is up to five years. This amount is repaid in instalments determined by the bank. High rate of mark up is charged against this type of finance.

Agricultural Credit:

The agricultural financing strategy of NBP is aimed at three main objectives:-

Providing reliable infrastructure for agricultural customers

Help farmers utilize funds efficiently to further develop and achieve better production

Provide farmers an integrated package of credit with supplies of essential inputs, technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term): 

Production and development

Watercourse improvement

Wells

Farm power

Development loans for tea plantation

Fencing

Solar energy

Equipment for sprinklers

Farm Credit:

NBP also provides the following subsidized loans for a period ranging from 3 months to 1 year on a renewal basis. 

Operating loans

Land improvement loans

Equipment loans for purchase of tractors, farm implements or any other equipment

Livestock loans for the purchase, care, and feeding of livestock

In case of Farm Credit NBP charges 14% to 16% Mark-up on both Short Term and Medium/Long Term credit. While for Non-Farm Credit the rate of Mark up is 16% p.a.

Production Loans:

Production loans are meant for basic inputs of the farm and are short term in nature.  Seeds, fertilizers, sprayers, etc are all covered under this scheme.

Consumer Finance

NBP has launched a scheme in collaboration with LG Electronics. The Scheme is known as “Ghar Ka TV” it is specifically for Televisions. Customer will get a TV set and will have to pay monthly instalments to the bank.

Export Finance Scheme

This facility is provided under the rules & regulations issued by SBP. The bank may provide facility against pre/post-shipment exports at agreed rate of interest. SBP then reimburses the rebate given by the commercial banks to the Exporters, under this scheme.

Foreign Bills Purchased (FBP) (Documentary / Clean)

This is a post-shipment finance facility provided within the sanction limit and is provided against export documents under collection. Banks normally prefer holding collateral security in such cases.

Foreign Bills Purchased – against L/C (FBP)

Under this arrangement foreign documentary bills are negotiated / discounted at prevailing exchange rate. The Bank ensures that documents are compliant with the L/C terms, and reimbursement instructions are carefully studied.

Payment against Documents – Under Sight L/C

Import documents if compliant are lodged in PAD and released upon payment from the party. The amount of bill plus charges, if any, claimed by the negotiating bank would be converted into Pak Rupees at the exchange rate prevailing on the date of lodgement or at the booked rate where forward booking was done at the time of opening of L/C.

Inward Foreign Documentary Bills for Collection under Usance LC

Such documents are lodged in IFDBC and are released against acceptance or trust Receipt or pledge of imported goods. In the later case goods are cleared through the bank’s approved clearing and forwarding agents and delivery orders issued against cash receipts.

Finance against Trust Receipt (FATR)

This facility is extended to valuable customers to enable them to obtain delivery of the goods received under L/C or against bills under collection and shall retire the documents out of the sale proceeds of goods or from other sources. The borrower will sign a standard Trust Receipt form and related security documents covering hypothecation of goods.

Finance against Imported Merchandise (FIM)

Under the import L/C either at party’s request, or due to the importer’s inability to discharge liability immediately FIM facility for a period not exceeding 90 days against pledge of the imported goods on mark- up basis is extended.

Inland Bills Purchased (Documentary / Clean)

This facility is allowed to customers against documentary bills and                    other negotiable instruments. In case of dishonour the related party’s a/c is debited, and the drawer is asked to arrange for sufficient funds in his a/c for adjustment thereafter. Besides the above mentioned products NBP is providing various fund / non–fund based facilities such as, overdrafts, loan against salary, LMM etc. Amongst these facilities which are governed under the rules/.regulations of SBP, are allowed by NBP if clients fulfil the criteria determined by the SBP.

Staff Finance                                                                                                        

NBP is also serving its employees along with its customers. It gives loans to its employees for the purchase of a car, house, and motorcycle and for the marriage ceremonies of their sons/daughters. NBP provides the following loans to its staff:

House Building Finance

The employee having served for 5 years or more in the bank, either in the capacity of a clerk or an officer will be granted 80 basic pays as a loan for building a house. If the loan availed exceeds Rs. 160,000, then 10% interest rate will be charged on the amount exceeding Rs. 160,000/-.

Motor Cycle, Car, and Personal Vehicle Finance

The car loan may be granted to those employees whose minimum basic pay is at least Rs. 10,000 and have served for at least 3 years. The employee will be granted 18 basic pays as loan. If the amount is exceeding Rs. 160,000 the 10% interest rate will be charged. The maximum Motor Cycle Loan is 56,000.

 

Procedure for Applying for Finance

Any customer who applies for finance should have an account (usually current account) with the concerned NBP branch, which should be in a running position.

First of all the customer or company has to submit a feasibility report which is sent to the higher authorities for recommendation. Following this, the recommending authority prepares its own feasibility report of the customer/company’s project and then hands over these to the sanctioning authority which finally approves whether finances should be released or not.

Sanction or approval is granted by the bank by specifying the terms and conditions of the credit to the party concerned. The bank does not advance 100% finance, rather a 30% margin is deducted from all finances.

A charge form is signed by the party before receiving the credit facility. If the borrower becomes insolvent, the bank can use it for recovering the amount advanced through the court of law.

 

LOAN PROCESS

Pakistani banks nave similar procedure for advancing loans. The process for granting loans to the clients is described in detail:

 

Establishment of Relationship:

The opening of a current or saving account by the customer with the bank results in the establishment of banker-customer relationship between the two. This relationship enables the banker to develop understanding of the customer’s corporate status, nature and place of his business, age, major stakeholders, and ultimately the genuineness of the customer.

Credit Investigation:

It involves the following steps:

Preliminary enquiries:

The banker approaches other banks functioning in the same area and gathers information about the track record and creditworthiness of its specific customer. Bank can also take information from the SBP credit information bureau or credit rating agencies where available.

 

Credit Analysis: WHAT MAKES A GOOD LOAN?

Credit analysis refers to the process through which qualitative and quantitative factors having direct bearing on the business of the customer are analyzed. This effort can help in making a lending decision, positive or negative. The analysis must be based on facts and should encompass all the relevant aspects of the credit deal. Findings of the analysis must be logically drawn and supported by relevant documents and reports. The division of the bank responsible for analyzing and making recommendations on the fate of most loan applications is the Credit Department. Experience has shown that this department must ask and satisfactorily answer the following question regarding each loan application:

Is the Borrower Creditworthy?

The question that must be dealt with before any other is whether or not the customer can service the loan i.e. repay the credit when due, with a comfortable margin for error. This usually involves a detailed study of five aspects of the loan application known as 5 Cs-Character, Capacity, Capital, Collateral, and Conditions. All must be satisfactory for the loan to be good one from the lender’s point of view.

Qualitative Analysis:

It is carried out to ensure that the credit is extended to a genuine borrower who has the capacity to borrow and good intention to repay. Following points are taken into consideration like:

Ownership of business, track record, market reputation etc.

Personal traits of owner and qualification.

Experience and management qualities.

Quantitative Analysis:

For qualitative analysis, financial statements provided by the borrower are thoroughly examined. The focus of financial analysis is on key figures in the financial statements and the significant relationship that exist between them.

Ratio analysis enables the analyst to carry out comparison of the following:

Trend Ratios: Involve the comparison of ratios of a firm over a period of time i.e. present ratios are compared with past ratios for the same firm.

Inter firms Comparison: Involve comparison of the ratios of a firm with those in the same line of business for the industry as a whole reflecting its performance in relation to its competitors.

 

Market Appraisal:

Market appraisal becomes imperative when credit facilities are desired by a customer desirous to establish a new manufacturing unit. In order to determine the extent of demand for the products of the proposed industrial unit, the banker must apprise himself of the ground situation with regard to the following:

Demand and supply situation.

Major producers and local distribution channels.

Price and credit terms availed by the retailers.

Evaluation of Feasibility Reports:

The projections and forecasting contained in the feasibility reports need to be checked and adjusted by using varied standards. As a result of this exercise, the banker is in a position to determine the break-even quantities, revenues and profit and loss of the firm at different operating capacities.

Credit Reports:

Credit reports obtained from other banks and the CIB report provide a base for the lending decision of a banker.

Problem Identification:

The main objective of credit analysis is to avoid problems that may crop up due to lack of good judgment with regard to the following:

Negative Macro Indicators Including:

Unfavourable change in the government policies.

Excessive and negative competition.

Change in consumer’s tastes, fashion, income and spending.

Labour unrest or deteriorating law and order situation.

Negative Business Factors Including:

Inconsistent business structure and Ineffective business plan.

Inadequate market share and unplanned expansion.

Plant and machinery obsolescence and loss of stakeholders’ confidence.

      III. Negative Management Factors Including:

Change in ownership and unnecessary centralization.

Evasive style and lavish spending behaviour.

Unsatisfactory past performance.

      IV. Negative Financial Indicators Including:

Change in auditors, and accounting policy.

Late submission of statements.

Climbing up debt-equity ratio and abnormal reduction in fixed assets.

Processing of Credit Proposal:

Normally standard formats designed by the banks are used for this purpose wherein all relevant information and recommendations for grant of credit are recorded. Necessary documents are attached with proposal like request letter, financial statements, resolution of the Board of directors, letter of partnership etc.

 

Sanction of Credit:

Credits are sanctioned either at the branch level or by the competent authority at the controlling offices. At the controlling office the credit proposal are assessed and approved on the basis of accuracy of credit analysis and other considerations as recommended by the branch management. Sanction advice is issued which is important and essential to ensure proper record of the terms and conditions of a credit, for legal purpose, execution of the required security documents, monitoring recoveries, timely renewal, and audit purpose.

 

Security Documentation:

After sanction but before disbursement of a loan, the credit administration department must ensure that charge documents are obtained from the borrower in accordance with the nature of credit facility, terms of credit and nature of approved security. The charge documents must be properly filled in, signed by the customer and designated officer and two witnesses where required. In case of mortgage registration is effected by the Registrar of Assurances before disbursement is done. In case of a limited company, charge is to be created on the assets of limited company with the Securities & Exchange Commission within 21 days. In case of partnership firm, authorized officials of the borrowing firm must sign the documents in their official capacity and affix their stamp thereon. In the meanwhile facility letter is issued wherein the terms and conditions of the loan are intimated to seek his acceptance thereto.

Disbursement:

Disbursement of the credit facility is made through either of the following method i.e. Running finance/Cash finance/Term finance.                                                                  

Monitoring and Periodic Evaluation:

The credit administration department is responsible to ensure that the borrowing customers:

Maintain their accounts regularly with the bank and pay amounts due in time.

Pay the mark up accrued on their accounts within a reasonable period.

Pay instalments on due date.

Adjust their liability accounts as per stipulation of the loan agreement.

Recovery and Follow Up of Advances

This is the most critical activity of the credit administration department. Default puts a bank in an embarrassing situation as not only its funds are tied up for indefinite period, but in most of the cases involve it in circuitous litigation entailing high cost. The following steps are involved in the recovery process:

Verbal and written reminders to the customer for the payment of overdue amounts.

To serve of legal notice, in case of ignoring reminders issued.

Making preparations for taking legal action.

Filing of recovery suit and follow up of legal process.

Tracing out the assets of the defaulters and putting the same to auction through the court, and making efforts to make recovery from the proceeds of assets auctioned.

LIST OF ACRONYMS

NBP	National Bank of Pakistan
SBP	State Bank of Pakistan
PLS	Profit & Loss Sharing
CF	Cash Finance
L/Gs	Letter of Guarantee
IB	Interest Free Banking
FBP	Foreign Bills Purchased
L/C	Letter of Credit
PAD	Payment Against Documents
IFDC	Inward Foreign Documentary Bills for Collection
FATR	Finance Against Trust Receipt
FIM	Finance against Imported Merchandise
A/C	Account
BOD	Board of Directors
CIB	Central Information Bureau
D/A	Documents against Acceptance
D/P	Documents against Payment
RF	Running Finance

Annexure 1

IB Documents under Non Interest Modes of Finance

IB 1-    Demand Promissory Note to be executed by Commercial Bank in favor of SBP in case of Commodity Operation

IB 2-    \form of Certificate to be executed by the borrower in favor of Commercial Bank authorizing it to negotiate the promissory note/bill to SBP- Commodity Operations

IB 3-    Guarantee of Federal/Provincial Government in favor of Commercial Bank for Commodity Operations

IB 4-    Agreement for Agriculture Financing for government commodity operations financed by Commercial Bank to be executed by the respective Bank, the agency availing the facility and the government

IB 5-    Agreement for Agriculture financing for Trading Operations of government owned agencies to be executed by the government corporation and the commercial bank

IB 6A- Agreement for financing for short/medium/long term on mark up basis to be executed by the customer and the bank where the customer desires the bank to honor cheques in excess of their drawing power/limit without prior arrangement

IB 6B- Agreement for financing for short/medium/long term on mark up basis where goods to be sold to the bank are not in existence on the date of the agreement and advance payment of sale price is intended by the bank on the basis of Bai-Salaam

IB 6C- Agreement for financing for short term on mark up basis (where facility is extended to a fixed income person)

IB 7-    Undertaking & guarantee to be signed by the purchases (customer) and guarantor in case of agriculture production/development

IB 8-    Application & agreement for Irrevocable Documentary Credit freely negotiable in beneficiary’s country top be signed by the applicant and his guarantor

IB 8A- Irrevocable Documentary credit advising form providing for shipment of goods by sea

IB 8B- Irrevocable Documentary Credit advising form providing for dispatch of goods by air

IB 9-    Letter of buy back cum indemnity for export and inland bills to be signed by the customer

IB 10-  Undertaking under Part! Of the SBP Export Finance Scheme to be signed by the exporter

IB 10A-                                                           -do-

IB 11-  Undertaking to be signed by the exporter under SBP Export Finance Scheme Part 2

IB 11A-                                                           -do-

IB 12-  Promissory Note to be made by the customer in favor of commercial bank

IB 13-  Application to be submitted by commercial; bank to SBP for obtaining refinance under SBP Export Refinance Scheme Part ½

IB 14-  Certificate to be submitted by commercial bank to SBP to the effect that finance provided is for export of eligible commodities

IB 15-  Application form to be submitted by scheduled bank to SBP to obtain Refinance under Export Finance Scheme Part 1

IB 16-  Form of agreement to be obtained by SBP from principal office of scheduled bank in case where refinance is obtained against finance made by scheduled banks to exporters of locally manufactured machinery

IB 17-  Form of application to be submitted by the scheduled bank to SBP to obtain refinance from SBP against loans provided to exporters by way of preshipment/postshipment financed under the scheme for financing locally manufactured machinery

IB 18-  Form of schedule of finance made to exporter, Appendix A to from LMM

IB 19-  Statement showing the particulars of finance account against which refinance is required under the scheme for financing export of locally manufactured machinery

IB 20-  Agreement for discount/purchase of bills to be signed by the customer

IB 21-  Agreement for financing purchase of a completed house/plot on mark up basis to be signed by the customer and the bank

IB 22-  Mortgage Deed

IB 23- Collateral Mortgage Deed

IB 24-  Memorandum of Deposit of title deeds of Immovable property with intention to create equitable mortgage thereon

IB 25-  Letter of Hypothecation

IB 26-  Letter of Pledge

IB 27-  Trust Receipt

IB 28-  Letter of lien on marketable securities accepted as collateral

IB 29-  Guarantee

IB 30-  counter guarantee to be obtained by the bank against guarantee issued

IB 31-  Agreement for sale and buy back of marketable securities

IB 32   Musharika Investment Agreement to be executed by the customer and the bank

INTRODUCTION

Deposits are the foundation out of which the bank grows and thrives. They are unique items on a bank’s balance sheet that certainly distinguishes it from other types of business firms. Deposits provide the means for bank loans and thus, represent the ultimate source of bank profits and growth. Bankers who fail to stay abreast of changes in their competitors’ deposit pricing and marketing programs stand to lose both customers and profits.

Deposits/Products offered by National Bank of Pakistan[9]

National Bank of Pakistan maintains its position as Pakistan’s 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 Pakistan’s economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of 1,189[10] branches.

National Bank classifies deposits on the basis of duration and purpose for which these are kept with the bank. They are as follows:

PLS (Saving Deposits)

 PLS means Profit and Loss sharing Account. Here the bank shares with the customer the profit or loss resulting from investment of customer’s funds along with the bank’s pool of funds.

Salient Features

This account can be opened with Rs.100/-

Profit is declared by the head office of NBP at the end of each half year accounting period, and the profit is distributed through all the branches.

Profit is calculated @ 4.10% p.a.

For profit the minimum balance is Rs.5,000.

Profit or return is paid bi-annually on minimum monthly balance (Jan-June & July-Dec.) which is announced in July and January respectively.

Generally withdrawals from PLS saving accounts are allowed on demand, i.e. without any prior notice of withdrawal.

All cheques and other instruments should be crossed, before they are      

               deposited for credit into account.

Zakat @2.5% is deducted from the balance outstanding on the first day of every valuation date i.e. 1^st Ramadan.

Overdraft/CF is not allowed in PLS saving accounts.

Withholding tax @ 10% on the profit amount is to be recovered whenever profit is paid on deposit account.

National Income Daily Account (NIDA)

The scheme was launched in December 1995 to attract corporate customers.  It is a current account scheme and is part of the profit and loss system of accounts in operation throughout the country. Rs. 2 Million is needed to open the account with no maximum limit. Profit is paid on a half-yearly basis on a monthly average balance. The rates of profit vary according to the slabs of deposit. On Deposits of Rs.2 million Rs.2,000 million, the rate fluctuates from 7.50% to 8.75%. It is a checking account and there is no limit of withdrawals.

PLS (Term Deposits)

The PLS Term Deposit is non-interest bearing account. It is also called time liability because it is kept for a certain period of time by the bank.  Initially this type of deposit was called as fixed deposits but after the islamization of banking system in 1985, its name has been changed from fixed to PLS Term Deposit.

Salient Features

The minimum deposits accepted by the bank for PLS Term Deposit is Rs.1000/-

There is no maximum limit on the amount of deposit in this account.

The deposits are accepted for a minimum duration of three months.

The maturity dates are 5 years, 4 years, 3, 2, 1 year, 6 months and 3 months.

Every six months the profit rates are changed.

The PLS term depositors are eligible for sharing profit/loses with the bank at the rate determined by the bank.

The profits and losses are distributed on half yearly basis.

On the maturity, the depositor has the option to withdraw the deposit along with his profit share if any, or renew the deposit.

PLS Special Notice Deposits

NBP opens profit and loss special Notice Deposits of 30 days and 7 days maturity. This is a special type of Term deposit being offered by NBP. Profit @ 4.0% on 7 days deposit and @ 5.0% on 30 days deposit is given to the deposit holders.

Current Deposits

A current account is that account which is payable on demand. A holder can withdraw the money on any working day during working hours of the bank without giving any prior notice. That is why the bank has to keep sufficient funds to meet the withdrawals of the current account holders.

Salient Features

The account holder is expected to maintain a minimum balance of Rs.500/- in his account or whatever the minimum amount is prescribed for the purpose.

No profit or return is paid on current accounts.

The deposits and withdrawals can be made through cheques, demand drafts, pay orders etc. drawn on the branch.

These accounts are completely exempted from withholding tax and Zakat deduction.

Call Deposit Account

A Call Deposit Receipt is issued by the bank for the amount received from the customer. The amount can be withdrawn at any time by presenting the receipt issued by the bank. The purpose of these deposits is to serve as a guarantee provided by bank to any department either public or private in taking or giving tenders. This type of account is to participate in tender bid; contractors are required to deposit a certain amount or percentage of the tender amount along with the tender documents for which Call Deposit Receipt are issued by Banks. Call deposit does not bear or earn any interest.

When a contractor requires such a receipt, he has to approach the bank for the issuance of Call Deposit Receipt.

Foreign Currency Term Deposits

All individuals including resident citizens and corporate bodies are entitled to get term deposits. Foreign currency accounts are opened on proper introduction and submission of required documents along with an initial deposit prescribed from time to time. Banks are allowed by SBP to fix their own rates of interest for term deposits of 3 months, 6 months, 12 months, 2 years and 3 years provided they do not exceed the Euro-Dollar Bid rates of Barclays Bank, London, plus the margins prescribed by SBP from time to time. The

Barclays Bank Bid rates and the maximum rates for payment of interest including margins allowed by State Bank are published daily by Foreign Exchange Rates Committee.

Salient Features

Interest on term deposits of 2 years and 3 years will be paid on yearly basis.

The return on foreign currency account will be paid on six monthly basis after June & December.

The return on term deposits will be paid on maturity or as prescribed by the state bank of Pakistan.

iv)    Term deposits will be automatically renewed for a like period and amount including or excluding return on TDR as per instruction by the depositor.

ACCOUNT OPENING PROCEDURE

The opening of an account is the establishment of banker customer relationship. Before a banker open a new account, the banker should determine the prospective customer’s integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. Preliminary investigation is necessary because of the following reasons.

Avoiding frauds

Safeguard against unintended overdraft.

Negligence.

Inquiries about clients.

FORMAL APPLICATION:

The customers are to fill in an account opening form. It is a formal request by a customer to the bank to allow him to have and operate upon the account.

OBTAINING INTRODUCTION:

Before opening an account the banker requires introduction of the customer from an old customer.

SPECIMEN SIGNATURE:

The customer gives the banker specimen signatures generally taken on a card supplied by the bank which is specially designed for the purpose. Operating instructions from the customer, title of account, and account number are entered on it. It expresses customers’ authority for the payment of cheques drawn on his banker.

MINIMUM INITIAL DEPOSIT:

The customer must have to maintain at all times not less than the minimum required balance according to the requirements by the bank.

OPERATING THE ACCOUNT:

After opening an account the banker gives to the customer

Pay-in-slip book

Pass book

Cheque book, with the account number assigned to the customer.

QUALIFICATIONS OF A CUSTOMER:

The relation of the banker and the customer is purely a contractual one. For keeping an account he/she must have the following basic qualifications

He must not be a minor.

He must be of sound mind.

He must not be disqualified by law to open an account..

The agreement should be made for lawful object, which create legal relationship.

Not expressly declared void.

NATURE OF ACCOUNTS

The different types of accounts being generally opened by a bank are as follows:

Individual Accounts

The accounts opened in the name of persons are called individual or personal accounts. While opening the individual account, the details about following columns should be taken carefully:

Occupation

Address

Special instructions

Next of kin

Copy of N.I.C.

Partnership Firms Account[11]

As per section 4 of the Partnership Act, 1932: “Partnership is the relation between persons who have agreed to share the profits of the business, carried on by all or any of them acting for all”.

A partner is the agent of the firm having powers to execute transactions for the purpose of the business of the firm. A retiring partner has no liability so far as the transactions after his/her retirement are concerned, if a notice of such retirement has been given to the bank. Otherwise, the retiring partner continues to be liable, even for finances made after his/her retirement.

In case of the death of a partner, the firm will be dissolved. The account should therefore, be closed and a new account will be opened with the remaining partners.

The following procedure and documents should be obtained:

The names of all partners should be written in the AOF.

Specimen signatures of all partners.

On SS card & on form “A” only authorized person(s) will sign.

Letter of partnership should be obtained.

If the firm wants to authorize manager to operate the account then they will sign the “Form CD 55” and the bank will send “Form 62” to all partners for confirmation.

Partnership deed is to be obtained (but it is not necessary).

JOINT ACCOUNTS

“The account in the name of more than one person is called joint account”.

The account shall be operated on by:

Any one singly or survivor or either or survivor(s).

Any two or jointly or survivor(s).

All jointly or survivor(s).

The survivorship mandate should be taken.

Signature of all partners should be obtained at the specified places.

JOINT STOCK COMPANIES ACCOUNT

Accounts opened by organizations formed by incorporation under Companies Ordinance, 1984 are called Companies Accounts.

[12]A company is an artificial person created by law and the assent of this artificial person is signified by means of a common seal and perpetual succession. Just like an individual, it can hold property and incur liabilities. It can sue and can be sued in the same way as that of an individual. Bank is a joint stock company registered under Companies Ordinance, 1984.

While opening the account of the company the following documents should be taken:

Attested copy of the N.I.C of each Director.

Copy of the Certificate of Incorporation.

Copy of Memorandum and Articles of Association.

Copy of the Resolution of the Board of Directors to open an account with the bank.

List containing the names and signatures of the Directors.

Copy of the Certificate of Commencement of Business (in case of public limited company).

Audited Balance Sheet.

ASSOCIATIONS, SOCIETIES & CLUBS ACCOUNTS

Accounts are often opened in the names of non-trading institutions such as Clubs, associations, schools, committees, funds and Unions.

The following documents should be taken:

Attested copies of N.I.C of all the office bearers.

Certified Copy of the bye-laws or rules & regulations.

Copy of the Resolution of the Governing Body/Managing Committee for opening an account with the bank..

Account opening form duly signed by the authorized persons.

List containing the names, addresses and signatures of the Directors.

PROPRIETARY FIRMS’ ACCOUNT

A firm owned by one person is called proprietary firm or sole proprietorship.

The following procedure should be followed:

Take the sole proprietorship form from the customer.

The signature of the sole proprietor is obtained in his/ her personal capacity under the declaration.

If he wants to give authority to some other person to operate the account he has to sign the “Form CD 55”.

In case of death of the proprietor, any authority given to any one will be ceased.

TRUST ACCOUNT

A ‘Trust’ has been defined in section 3 of Trust Act, 1882, in the following terms:

“A Trust is an obligation annexed to the ownership of property and arising out of a confidence proposed in and accepted by him for the benefit of another, or of another and the owner”.

Any person who is competent to contract may create a Trust which must be for a property transferable to the beneficiary. The account should be opened in the name of Trust and all the trustees should sign the account-opening form. The banker should examine the Instrument of Trust (Trust Deed) very carefully, and a copy of it should be kept on record.

REFERENCES

Basit, Abdul. (2002). An Internship Report on NBP City Branch.

http:// www.nbp.com.pk

Nasir, Saeed. (1993). Banking Currency & Finance. Lahore: Salman Publisher 1993.P-13

Negotiable Instrument Act 1881. Section 5.

Partnership Act 1932.

Siddiqi, Asrar.H. (1998). Practice & Law of banking in Pakistan. 6^th edition. Karachi: Royal Book Company.P-1.

Human resource management[13]

Human resource management is the set of activities directed at attracting, developing and maintaining an effective workforce. Human resources are vital for effective organizational functioning.

Personnel department of national bank of Pakistan is establishes in the head office Karachi. This department controls all the staff of national bank of Pakistan. The human resource management office of NBP performs the following functions:

Recruitment

Recruiting is the process of attracting qualified persons to apply for the jobs that are open. As the national bank of Pakistan is a nationalized bank, it advertises the vacancies available to be filled through newspapers. The requirements for selection depend upon the post to be filled. The qualification and age required are specified in the advertisements. Experience is considered necessary for post like computer programmer and typist etc.

Selection process

Selection process is divided into following steps:

Short listing of the applicants

The management of the bank scrutinizes application of the candidates who fulfill the requirements are sent the test calls. In the first step thousands of candidates apply for the limited posts available. The calls are sent by head office to only those candidates who fulfill the requirements of the job advertised.

Tests

Test is conducted by Pakistan banking counsel under the supervision of Pakistan banking and finance service commission. In the tests the applicants are further short-listed.

Interviews

For the interviews only those candidates are called who qualify the written test. Different types of questions are asked from the candidate by the interviewing board such as

Questions about the personal background, extra curricular activities during education and about the personal contacts.

Questions about the subjects or courses studied by the candidate.

Questions about the current events of national and international importance.

Role of banking in the current situation of economy.

Apart from these questions the candidate’s personal interests are also discussed and an effort is made to have understanding of the individuals.

Merit list

After the final result, the successful candidates are sent the appointment letters and they are asked to sign the agreements with the bank.

Training

Training is a vital and necessary and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the establishment. Training is the organized procedure by which people gain knowledge and skills for a definite purpose. The objective of training is to achieve a change in the behavior of that trained.

After candidates are recruited and inducted, they are trained and developed to be best fit for the job and the organization. The staff college receives junior bank officers for further training in banking. The courses last from six to nine weeks with about twenty five students in each course. The college is residential one and provides a collegiate atmosphere, which helps to impart a sense of camaraderie, which in itself is of great value. It is also of interest to record that the staff college receives trainees from abroad as well as domestic, which helps to create worthwhile reference to banking business.

The staff college courses are designed not only to impart technical studies but also to develop qualities of decision making. The college is one of the most important institutions setup by the bank because it grooms students for future when they will shoulder heavy responsibilities and assume higher positions in their careers ahead.

The bank encourages its officers to attend banking seminars both in Pakistan and abroad and attaches great importance to imbibing new concepts and their application in our environment.

Transfer policy

Transfer is a change in the job of an employee from one job to another or from one branch to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another. It may also be possible at the request of the employees. In NBP there are two types of transfers

Inter branch transfer policy

The management of NBP frequently transfers its workers from one station to another. Usually managers are transferred to enhance their managerial skills. Sometimes the efficient workers are sent to stations where there is heavy load of work or performance of the existing employees is not up to the mark.

Inter department transfer policy

Inter departmental transfer is related to the transfer from one department to another department or one section to another section in a branch. The purpose of this is to broaden the horizons of experience of the staff and make them all-rounder in all aspects and departments of the bank.

Promotion Policy

Promotion cannot be claimed as a matter of right on the basis of seniority but on the basis of performance. Main criteria for promotion are the performance and skills of an individual. Seniority is also taken into consideration but it is of secondary importance.

A person’s career is an extremely important element his life. Both productivity and morale are facilitated if these personal decisions are based on objective assessment of present and potential capability.

Promotion is a term which covers a change, calls for greater responsibilities and usually involves higher pay and better terms and conditions of service and before a higher status.

The purpose of promotion is:

To provide satisfaction to the employee who deserves promotion.

To enhance experience and ability.

To provide an organization with competent workers.

To fill the vacant posts with able and skilled people.

Criteria

In NBP the following criteria is laid down:

Seniority list

Seniority at different levels is maintained by NBP as follows:

For OG2, separately at circle level.

For OG1 and up to SVP level at Head office.

For EVPs and SEVPs the list on the integrated basis by PBC.

Annual appraisal

Performance of an officer is recorded in the annual confidential report at the end of the calendar year by the immediate supervisor of the officer concerned.

Sanctioned strength

After considering the operational requirements of the bank, the board of directors determines the strength in each cadre.

Process of appraisal

In order to make the appraisal objective, the following factors are taken into account:

The appraisal of overall performance comprises of the following elements

Educational qualification

Professional qualification

Service in grade

ACRs of previous 3 years

Operating performance

Experience in different disciplines

Postings

Factors to be considered by the promotion committee:

Administrative ability and effectiveness at supervisory level.

Leadership qualities and initiative

The ability to create a sense of discipline among the staff

Self confidence

Commitment and motivation to achieve the organizational goals

Ability to take prompt decisions and accept responsibility

Reputation of integrity and moral rectitude, this includes living within known sources of income and non involvement in any business dealings directly or indirectly.

Non involvement directly or indirectly in any fraud or forgery case

Promotion committees

The promotion committees exist at the following levels:

Committee at regional office level

Committee at provincial head quarter

Committee at head office

Inter banking promotion committee

Salary administration

Compensation is the financial remuneration given by the organization to its employees in exchange for their work. Compensation is an important and complex part of the organization-employee relationship. Basic compensation is necessary to provide employees with the means to maintain a reasonable standard of living. NBP understands clearly its responsibilities and wants to earn a good name in term of pay scale, staff benefits, pensions and other fringe benefits. The bank also provides its employees the most needed job security and offers a conducive and congenial career to its employees. The salaries of the employees are quite adequate and they are adjusted periodically to the inflationary pressure.

Benefit packages for the employees

Some of the benefits are discussed below:

Leaves

At NBP following types of leaves are granted to its employees:

    

Privilege leaves

Privilege leave for 30 days is granted per calendar year. Privilege leave will not be granted in excess of the number of days to the credit of an employee. Privilege may not be taken more than three times a year. Basic pay is granted in this case.

Casual leaves

Maximum 11 days per calendar year can be granted to an employee but not more than three days at a time. During this leave an employee gets his full pay.

Medical leaves

The annual entitlement is 30 days per calendar year on full pay. The bank may grant additional one month in the same year on half pay.

Pilgrimage leave

Special leave with full pay for 40 days will be granted for performing Hajj. 7 days before the departure and 7 days after the arrival are allowed to the staff with full pay. This leave is allowed only once in the entire service.

Compensation

payment or remuneration for work performed, injuries received, loss of employment, or other considerations

Bonus

It is determined on the basis of profit earned by the bank every year and disbursed in the manner as approved by the board. The bonuses paid to the staff are regular feature of the bank policy. The bonuses do help to motivate the staff members.

Provident fund

All the staff members are required to contribute 7.5% of their salaries to their provident fund. These funds are pension able.

Allowances

The grant of payer allowance to the holder of a post or to any other employee shall require the sanction of competent authority. Allowances for employees are:

Medical allowance

The bank will reimburse the cost of medical attendants and medicines claimed by the employees incurred on himself and his dependants, subject to providing of actual bills on reimbursement basis.

House rent allowance

The bank has constructed many colonies at different places to provide housing facility for the employees. The rents are paid to the staff members who could not be accommodated in the residential areas constructed by the bank. Thee rent on the house is at very reasonable terms

Staff loan

The bank according to the length of service and eligibility of employees provide staff loans. NBP offers two types of loans

House building loans

It is provided to the employees basically for the construction of houses. Only a part of their salary is deducted, when they complete the installments then they become owner of the houses. \The loan can easily be acquired.

Conveyance loans

The bank provides loans to its staff members on very easy and convenient terms and conditions. The staff members are granted loans to buy vehicles. The repayment procedure of these loans is very simple.

Computer Loans

The bank provide loans to its permanent employees for the acquisition of Computers for there personal use. This loan is offered to them on easy terms and conditions and is for a specific period of time.

References

www.NBP.com.pk

Annual Report of NBP 2002.

Interview Conducted with RASHID SETHI (Principal NBP’s Staff College Peshawar)

REMITTANCES[14]

Remittances are “act of paying, which means the sending of money to pay for merchandise or services[15]”

Along with other services, NBP is also providing the facility of transfer of funds from one bank to another bank and from one place to another place. The transfer of funds is the main responsibility of the remittances department. As an act of paying or transferring money the following means of remittances are used in NBP.

 

Mail Transfer (MT)

It is a mode of transferring money from one branch to another branch within the city or outside the city or outside the country. It is an order by a bank to its branch, agent or correspondent in a foreign center. It is an order to pay a specified sum of money to the person named in the mode of transfer. It is sent by sea or airmail.

If the customer is an account holder of the bank, then the bank will debit his account. The concerned officer will fill three forms to make the mail transfer complete. The forms used for this purpose are listed below

Debit Voucher

Credit Voucher

Mail Transfer Register Entry

If the customer is not an account holder of the bank, firstly, he/she has to deposit money and then the above said procedure will be adopted to transfer his/her money.

Telegraphic Transfer (TT)

With the changing requirements of today, NBP has introduced a faster mode of transfer of money, i.e. Telegraphic Transfer. This service may be provided to the public on their written request and against the value received.

In case of telegraphic transfer, instructions regarding payment are sent to the drawee branch telegraphically i.e. the order to pay is sent by cable. These telegrams, which authorize payment to the payee, should be sent to the drawee branch in a coded language and under a confidential number known as a “test number” The rate of TT is always higher than the rate of MT.

 

Demand Draft (DD)

Demand draft (DD) is another way of transfer of money from one bank to another bank. It is a written order, drawn by one branch of a bank upon another branch of the same bank, to pay a certain sum of money to or to the order of a specific person. Drafts are not issued, or drawn on branches situated within the same city.

If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase NBP’s Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch.

Types of Demand Drafts

NBP deals in two types of DDs.

Open DD

It is one which is payable directly at the counter and there is no need of crediting it to the account.

Crossed DD

Incase of crossed DD payment is made through  the account. The amount of DD is credited to the favoring account and then the amount can be withdrawn through cheque.

 

Payment Order (PO)

Payment order (PO) is the most convenient, simple and secure way of transferring  money. It is used for local transfer only. A pay order is a written order issued by a bank or its branch, drawn upon and payable by itself. It is an order to pay a specified sum of money to or to the order of a specific person. For the issuance of Pay Order NBP charges Rs.50 (flat) and for the Cancellation/Issuance of Duplicate NBP charges Rs.50 (flat) again.

Traveler’s Cheque

Traveler’s cheque is an order drawn by a bank upon itself to pay a specified sum of money on demand to the purchaser of the cheques. The paying bank after comparing and verifying the signature of purchaser which he had signed at the time of the purchase of cheques makes the payment.

Salient Features

Negotiability: Pak Rupees Traveler’s Cheques are negotiable instruments.

Validity:          There is no restriction on the period of validity. 

Availability:    Are available at 700 branches of NBP all over the country. 

Encashment:   At 400 authorized branches of NBP.

Denomination: Rs.5000, 10000, 50000.100,000.

Limitation:                  No limit on purchase. 

Safety:             NBP Traveler’s Cheques are the safest way to carry our money. 

COLLECTION CELL/CLEARING DEPARTMENT[16]

The main function of the clearing department is the interchange and settlement of credit claims. This is usually done through a “clearing house”.

A Clearing House is an association of commercial banks setup in a given locality, for the purpose of interchange and settlement of credit claims of scheduled banks. The function of a Clearing House is performed by the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated by the State Bank of Pakistan. If SBP has no office at a place, then the NBP, as a representative of SBP, acts as a Clearing House.

The mechanism whereby cheques are exchanged in bulk and the cross obligations of banks are offset is explained in brief as follows.

In practice the person receiving a cheque as payment deposits the cheque at the bank where he/she has an account. The cheque is deposited for collection purposes. The bank stamps the cheque which states that the payee’s account will be credited on realization from the other bank i.e. the bank on which the cheque is drawn.

Now the bank in which the cheque has been deposited becomes creditor of the drawee (other) bank. The debtor bank will pay the amount of cheque by transferring it from cash reserve, if there are no offsetting transactions. At the same time, the creditor bank receives large amounts of cheques drawn on it by other banks giving claims of payments by them. It will be most uneconomical and cumbersome if the bank had to transfer cash for meeting each liability. The easiest and safest way is to offset the reciprocal claims against one another and receive only the net amount owned. This facility is provided by the clearing house i.e. SBP.

In Peshawar, the cheques of the clearing department are sent to the NBP City Branch (Main Branch) for clearing at clearinghouse. The official of the clearing department make entry of Cheque coming form each branch in a register, which is called Transfer Delivery Register. Then they arrange the entire cheques bank wise. The representative of all commercial banks meets at a fixed time on all the business days of the week in the morning at the clearing house where the representative of NBP hands over the cheques drawn on other banks to the representative of the bank and collects the cheques drawn on NBP. A summary sheet is prepared which shows the amount and name of the Branch and bank on which the cheque are drawn; the total number of cheques delivered and received by them and the total amount is calculated.

After this process the officials of clearing department separates cheques of each branch of NBP, which are then sent to the respective branches via peon for clearing. Then three copies of Inter Office Advice Clearing are prepared. This shows the net amount credited or debited.

The branches of NBP receive the cheques, DDs RTC for clearing. They check all them and if some cheques can not be honored, they are returned to City Branch by attaching a memo with every cheque indicating the reason of dishonor. The branches retain the honored cheques. The peon collects the remaining cheques form branches and submits these to the City Branch. The officials at the clearing department makes required adjustments in the Transfer Delivery Register, in case some cheques are returned from branches.

In the second session of the clearinghouse, representatives of the banks meet again to exchange the dishonored cheques. The net amounts owed or payable are settled by debiting/crediting the bank account by the SBP official. 

The functions of the clearing department are very technical and require accuracy and quick response. Delay or negligence in the clearing department is very costly to the bank.

REFERENCES

Basit, Abdul. (2002). An Internship Report on NBP City Branch.

http:// www.nbp.com.pk

Nasir, Saeed. (1993). Banking Currency & Finance. Lahore: Salman Publisher 1993.P-13

Siddiqi, Asrar.H. (1998). Practice & Law of banking in Pakistan. 6^th edition. Karachi: Royal Book Company.P-1.

---

[1] Siddiqi, Asrar.H. (1998). Practice & Law of banking in Pakistan. 6^th edition. Karachi: Royal Book Company.P-1.

[2] Basit, Abdul. (2002). An Internship Report on NBP City Branch

[3] www.NBP.com.pk

[4] Annual Report of NBP 2002.

[5] www.NBP.com.pk

[6] NBP annual report 2002

[7] www.NBP.com.pk

[8] NBP’s Advances Manual.

[9] www.NBP.com.pk

[10] NBP annual report 2002

[11] Partnership Act 1932.

[12] Company ordinance 1984

[13] Interview conducted with RASHID SETHI (Principal NBP’s Staff College )

[14] www.NBP.com.pk

[15]Encarta® World English Dictionary © & (P) 1999 Microsoft Corporation.

[16] Basit, Abdul. (2002). An Internship Report on NBP City Branch.