The Bank of Khyber (Internship report)

ACKNOWLEDGEMENT

 

First of all, I am thankful to the most merciful and Almighty Allah who gave me the strength that I fulfilled my task efficiently.

     For the completion of our report I am indebted to plenty of people for their very sincere cooperation that they extended to me at various stages. First and foremost problem that every student faces is the selection of a Report. I am very thankful to my supervisor Sir, Naqeeb for helping me out in time of confusion. During our course and the execution of my report, I had a real chance to learn from his vast experience and immense knowledge.

I am very thankful to staff members of The Bank Of Khyber Mingora Branch as they guided and provided me with valuable information regarding my report.

                                                                                                                        

                                                                                 AAAAAAAAAAAAAAA

                                                                                              MBA (FINANCE)

                                                                                              ROLL NO (0000)

CERTIFICATE

 

AN INTERNSHIP REPORT

ON

THE BANK OF KHYBER

MIGORA BRANCH (0012)

APPROVAL SHEET

   Supervisor:  

   Signature: --------------------------------------

   Name:   Mr. NAQEEB-UR-REHMAN

   Designation:  Lecturer in Department of Management Sciences.

 DEPARTMENT: MANAGEMENT SCIENCES

  HAZARA UNIVERSITY MANSEHRA.

CONTENTS

 

S.No	Title	Page No
	Preface
	Acknowledgement
	Table of contents
	List of tables
	Executive Summery
PART-1 (INTRODUCTION)
CHAPTER #1 INTRODUCTION OF STUDY
1.1	Introduction	1
1.2	Purpose of the study	2
1.3 1.4	Scope of the study Objectives of the  study	2 2
1.5 1.6	Limitations of the study Benefits of  the study	3 3
1.7	Research  Methodology	3
1.8	Scheme of the study	4
PART-2 (REVIEW)
CHAPTER # 2 INTRODUCTION OF THE ORGANIZATION
2.1	Definition of Banks	5
2.2	History of NBP	6
2.2.1 2.2.2	Nationalization in 1974 Challenges and  new initiatives in 1990-2005	7 7
2.3	Vision Statement	8
2.4	Mission statement	8
2.5	Objectives of the bank	8
2.5.1	Maximum profit	8
2.5.2	Good administration	8
2.5.3	Customer service	9
2.5.4	Developments	9
2.5.5	Expenditure discipline	9
2.5.6	Zonal inspection	9
2.5.7	Maximum utilization of staff	9
2.6 2.7	Role of bank in economic development Board of Directors	9 12
2.8	Management	12
2.9	Management of NBP	13
2.10	Network of branches	15
2.11	Objectives of NBP	15
2.12	Increase in deposits	15
2.13	Extension of loan	15
2.14	Functions of NBP	16
2.14.1	Accepting Deposit	16
2.14.2 2.14.3	Discounting bills of exchange Agency  service	17 17
2.15	Unmatched banking facilities	19
2.16	Summation	19
CHAPTER # 3 DEPARTMENTALIZATION OF NBP
3.1	Introduction	20
3.2	Demand Drafts	20
3.3	Swift System	20
3.4	Letters Of Credit	20
3.5	Travelers Cheques	21
3.6	Pay order	21
3.7	Mail Transfers	21
3.8	Foreign Remittances	21
3.9	Short Term Investments	22
3.10	National income daily account	22
3.11	Equity Investments	23
3.12	Commercial Finance	23
3.13	Trade Finance And Other Business Loans	24
3.14	International Banking	27
3.15	NBP Offers	27
(A)	DEPARTMENTATION OF NBP	20
3.16	Cash Department	29
3.17	Clearance Department	32
3.18	Advances Department	33
3.19	Remittance Department	39
3.20	Human Resource Management	41
3.21	Deposit Department	43
3.22	Foreign Exchange Department	47
B)	DEPARTMENTATION OF NBP KARAK CITY BRANCH.
3.23	Cash Department	48
3.24	General Banking	48
3.24.1	Remittances Department	49
3.24.2	Advances Department	49
3.24.3	Clearing Department	49
3.24.4	Computer Department	50
3.24.5	Establishment Department	50
3.24.6	Government Department	51
3.25	Summation	51
CHAPTER #  4  FINANCIAL POSITION OF NBP
4.1	Balance of NBP as at Dec 31,2004 & 2005	52
4.2	Profit and loss at the end of Dec 31, 2004 & 2005	53
4.3	Cash flow statement at the end of Dec 31, 2004 & 2005	55
4.4	Statement of changes in Owner Equity at the end of Dec 31, 2004 & 2005	57
CHAPTER # 5  FINANCIAL ANALYSIS
5.1	Percent Analysis of balance sheet as at Dec 31, 2005	58
5.2	Percent Analysis of profit and loss at the end of Dec 31, 2005	60
5.3	Vertical Analysis of balance sheet as at Dec 31,2005	62
5.4	Vertical Analysis of profit and loss at the end of Dec 31,2005	63
5.5	Horizental Analysis balance sheet at Dec 31,2005	65
5.6	Horizental Analysis of profit and loss at the end of Dec 31,2005	66
5.7	Ratio Analysis	68
CHAPTER # 6 SWOT ANALYSIS OF NBP KARAK CITY BRANCH
6.1	Introduction	70
6.2	Strengths	71
6.3	Weaknesses	72
6.4	Opportunities	74
6.5	Threats	74
6.6	Competitive analysis	75
6.7	Summation	77
CHAPTER # 7 CRITICAL ANALYSIS OF NBP KARAK CITY BRANCH
7.1	Introduction	78
7.2	Problem at the Branch	78
7.3	Functional analysis	79
7.4	Administrative analysis	80
7.5	HRM analysis	82
7.6	Summation	84
RECOMMENDATIONS AND IMPLIMENTATION PLAN            CHAPTER# 8 FINDIDNGS AND RECOMMENDATIONS
8.1	Introduction	85
8.2	Professional Training	85
8.3	Delegation of authority	86
8.4	Performance Appraisal	86
8.5	To overcome problem	86
8.6	Transfer	86
8.7	Changes in policies	86
8.8	.Need of qualified staff	87
8.9	Utility Bill Charges	87
8.10	Link With The Head Quarter	87
8.11	Credit Card	87
8.12	Installing validator and ATM	87
8.13	Interest On Over Draft	88
8.14	Clean Loans	88
8.15	Cash Financing	88
8.16	Decreasing Administrative Expenses	88
8.17	Need To Be Flexible In Credit Policy	88
8.18	Technological Advancement	89
8.19	Staff Relationship	89
8.20	Improper Distribution Of Work	89
8.21	Favoritism and Nepotism	90
8.22	Interdepartmental Transfer	90
8.23	Marketing Policy	90
8.24	Complaints Of Customer	90
8.25	Analysis of the business	91
8.26	Organizational Commitment	91
8.27	Managerial Leadership	91
8.28	Credit monitering	91
8.29	Extended banking hours	91
8.30	Housing loans	92
8.31	Avoiding Bad Debts	92
8.32	Implementation plan	92
8.33	Action implementation plan cost	93
8.34	Summation	94
	List of person interviewed	95
	Bibliography	96

LIST OF TABLE

CHAPTER NO	CONTENTS	PAGE NO
CHAPTER NO 2	Board of directors	12
CHAPTER NO 2	Senior Management NBP	13
CHAPTER NO 4	Balance Sheet at December 31st, 2004 & 2005	52
CHAPTER NO 4	Profit and loss Account for the year ended December 31st, 2004 & 2005	53
CHAPTER NO 4	Cash flow statement for the year ended December 31st, 2004 & 2005	55
CHAPTER NO 4	Statement of changes in Equity for the year ended December 31st, 2004 & 2005	57
CHAPTER NO 5	Percent Analysis of Balance Sheet December as at 31st, 2005	58
CHAPTER NO 5	Percent Analysis of profit and loss statement at the end of 31st, 2005	60
CHAPTER NO 5	Vertical analysis of Balance Sheet as at 31st, 2005	62
CHAPTER NO 5	Vertical analysis of profit and loss statement at the end of 31st, 2005	63
CHAPTER NO 5	Horizontal analysis of Balance Sheet as at 31st, 2005	65
CHAPTER NO 5	Horizontal analysis of profit and loss statement at the end of 31st, 2005	66
CHAPTER NO 5	Ratio analysis

 

EXECUTIVE SUMMARY

 

This report highlights the operations and functions of bank. Banks acts as financial agents to their customer; in return they get reward for their services. Banks play important role in development of society. A strong economy must have a good banking system.

National Bank of Pakistan is one of the leading banks in Pakistan. According to international standards of banking system, it is one of the best banks in South Asian region as well as the bank, which is, come the top ten in the world. This report explains how different functions of NBP works and what are their services.

The report relies mainly upon secondary data with the use of primary data at instances when the former would be unclear or difficult to comprehend. The first part of the report is about the evolution of banks, where as the second part is about the functions and services of NBP and in third part the financial analysis, Swot analysis and recommendations are given.

During the critical analysis, it was observed that NBP is one of the leading commercial banks of Pakistan with a network of around 1242 branches all over Pakistan. NBP provides a wide variety of products and accounts that suit the lifestyle and needs of the masses .In fact commercial banking is regarded as a “Conservative” business because the rewards are modest and the penalties of bad banking are many. As a trustee of the public funds, NBP has a greater responsibility for safety and prudence. Many business can enjoy some slack in their affairs, commercial banks cannot afford this, since commercial banks must make a living by putting the money at their disposal to work, they are faced with the problem of making a living without jeopardizing the safety of their institution and NBP is doing all this very efficiently. The NBP is known for its customer services as well as for its products, which are in demand.