Friday 30 September 2011

National Bank of Pakistan (Introduction)

NATIONAL BANK OF PASKISTAN
MAIN BRANCH MANSEHRA

CHAPTER NO 1

INTRODUCTION OF STUDY

1.1    BACKGROUND OF STUDY

National Bank of Pakistan is one of the leading and first government recognized bank in Pakistan. Aimed to be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering.

NBP was established in November 9, 1949. which started functioning from November 20,1949. The reason of its development was that the NBP in addition to being a commercial bank in the public sector at a time when all other commercial banks were in the private sector, also came to acquire certain characteristics which to this day set it part from other nationalized commercial bands of the country.

The most important of these characteristics is that the NBP acts as an agent of the central bank where the State bank does not have branch of its own.

The NBP also acts as trustee to the national investment trust (NIT), one of the premier financial institutions of the country charged the responsibility of mobilizing small saving. The establishment of NBP thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan.

1.2 PURPOSE OF STUDY

National Bank of Pakistan is one of the oldest and well-established banks in the public
sector. Its mission is to be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality service as well as the range of product offering.
I select NBP Main Branch Mansehra because it is in the center of the city as will, as in the District Mansehra. all other banks and branches have accounts with it and it is maintaining salary a9counts of all major sector of employees as will as of Govt. Accounts and facing a lot of challenges during the process of its operations. it also provide the facility of clearing house for other banks in the district.
So.1 prefer NBP Main Branch Mansehra order to set knowledge of this organization (NBP) for the students of master of Commerce especially for the finance students it is very important to know all the finance activity. Activity. In finance department I know, in which method the branch issued the advances and what markup.
In Main Branch Mansehra they give short-term finance especially for the employees, and the chance of default is very low because they have also an account and their salary come in that branch.
The weakness of the finance section is that the process is very slow, and the requirement for issuing the advances, for the employees it is very tuff. all of this is because of this reason that only one person is handling the Advances as will as the establishment and all other cases are out of the reach of the manager as well as of other staff. And there is no even a single case for defaulter especially for the employees

1.3     SCOPE OF WORK
The scope of my work is based on the complete observation of National Bank. But in short of time I worked in special department of the branch. ie.
·    Deposits Management
·    Advances Management
·    Foreign Exchange Management
·    Transfer of Money.
·    Establishment
·    Cash Management

Remittances and Bills Management.

In deposit department, deposits are divided. in two or three types.

(i)    Current deposit.

(ii) PLS deposit (PLS saving A/C, PLS term deposit. In the above, three type of deposits I known the entire necessary requirement and also know the interest rate.
Secondly advance department is the most important department of the bank. It deals long­termi3dvance and short-term advance and also consists of finance Le. short-term finances
and long-term finance.
Thirdly I also worked in remittance department. It consists of issuing DD's, MT's, telegraphic transfers SE (short credit). LAC (local short credit) clearing.
I also worked in account department and cheque issuing, and computer section as well as in advances and transfer sections.

1.3    METHODOLOGY OF STUDY/RESEARCH
During my internship in National Bank the most important ti3sk was to collect more quality information about the organization as possible that is why I used a number of techniques to collect the required material and conduct the report.
The methodology, which I adopted for this research ism based on both the primary data as will the secondary data.
·    The primary data: it consist (interview with manager discussions with executive and officers and other staff personal observations and different types of written material from the bank.
·    The sources of secondary data: Were annual report 2004, manual, circulars,     relevant books, brochures and monthly economic bulletin.

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