Description
This pdf is about NBP new report for internship report
PRESENTED BY:
Name: ROLL # Class
BAHAUDDIN ZAKARIYA UNIVERSITY MULTAN
OH GOD OPENS OUR EYES. TO SEE WHAT IS BEAUTIFUL OUR MIND TO KNOW WHAT IS TRUE, OUR HEART TO LOVE WHAT IS GOOD
Holy Prophet Muhammad (P.B.U.H) The greatest social reformer TO My Beloved Mother and Father Who taught us? The first word to speak The first alphabet to write
And
First step to talk……
To
All those from whom I learnt Who always remains? In our heart Through out the whole span of our life and are Nearest, dearest and deepest To us
CONTENTS
INTRODUCTION TO NATIONAL BANK………………….1 MISSION STATEMENT……………………………………..2 SERVICES OFFERED BY NATIONAL BANK…………….3 FEATURES…………………………………………………...4 BRANCH LEVEL HEIRACHCY…………………………….5 OPERATIONS MANAGEMENT…………………………….6 FOREIGN EXCHANGE DEPARTMENT………………........7 OTHER RETAIL FUNCTIONS………………………………8 DOCUMENTARY CREDIT………………………………….. SENIOR MANAGEMENT……………………………………. DIRECTOR’S REPORT………………………………………… FINANCIAL HIGHLIGHS…………………………………….. CORPORATE INFORMATION……………………………….. SWOT ANALYSIS……………………………………………. CREDIT DEPARTMENT……………………………………… GUIDE LINE OF CREDIT POLICY…………………………. CREDIT CYCLE……………………………………………… ATM FINDER…………………………………………………. NBP PRODUCTS………………………………………………. COLLECTION POLICY……………………………………….. TECHNOLOGY………………………………………………… NOTICE OF 55TH ANNUAL GENERAL MEETING…………. BALANCE SHEET……………………………………………… PROFIT & LOSS STATEMENT………………………………… CASH FLOW STATEMENT………………………………………
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.
VISION AND GOALS
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
INTRODUCTION
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 branches locally, internationally and representative offices.
We aim to be an organization that is founded on…
• • •
Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities.
We shall work to…
• • •
Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders.
We aim to be peopling who…
• • • Care
about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures of true success.
We have confidence that tomorrow we will be…
• • •
Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment
SERVICES OFFERED BY NATIONAL BANK OF PAKISTAN
INTERNATIONAL BANKING
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :• •
•
To effectively manage NBP’s exposure to foreign and domestic correspondence Manage the monetary aspect of NBP’s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank’s profitability Generation of incremental trade-finance business and revenues
NBP offers:
• •
The lowest rates on exports and other international banking products Access to different local commercial banks in international banking
DEMAND DRAFTS
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
MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market.
PAY ORDER *
NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive.
TRAVELER'S CHEQUE
Pak Rupees Traveler’s Cheques are a negotiable instrument Validity: Negotiability: Availability: Encashment: Limitation: Safety:
There is no restriction validity At 700 branches of NB country At all 400 branches of No limit on purchase NBP Traveler’s Cheq way to carry our mone
LETTER OF CREDIT
NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
COMMERCIAL FINANCE
Let us help make your dreams become a reality Our dedicated team of professionals truly understands the needs of professionals, agriculturists, large and small business and other segments of the economy. They are the customer’s best resource in making NBP’s products and services work for them.
FOREIGN REMITTANCES
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to:
• •
Increase home remittances through the banking system Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries
PakRemit™ Remit funds from USA to Pakistan
New Features: The existing system of home remittances has been revised/significantly improved and well-trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia.
• •
Zero Tariffs: NBP is providing home remittance services without any charges. Strict monitoring of the system is done to ensure the highest possible security. Special courier services are hired for expeditious delivery of home remittances to the beneficiaries.
•
SWIFT SYSTEM
The SWIFT system (Society for Worldwide Inter bank NBP Financial Telecommunication) has been introduced for SWIFT speedy services in the area of home remittances. The Network system has built-in features of computerized test keys, Click here which eliminates the manual application of tests that often cause delay in the payment of home remittances. The SWIFT Center is operational at National Bank of Pakistan with a universal access number NBP-PKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT. Using the NBP network of branches, you can safely and speedily transfer money for our business and personal needs.
SHORT TERM INVESTMENTS
NBP now offers excellent rates of profit on all its short term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBP’s rates of profit are extremely attractive, along with the security and service only NBP can provide.
EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its economic base and restore investor confidence. The bank is now regarded as the most active and dominant player in the development of the stock market. NBP is involved in the following: • • Investment into the capital market Introduction of capital market accounts (under process)
N.I.D.A
National Income Daily Account 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. MODE OF CALCULATION: AVERAGE BALANCE DURING A CALENDAR MONTH
NBP’s involvement in capital markets is expected to increase its earnings, which would result in better returns offered to account holders
INTERNATIONAL BANKING
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :• •
•
To effectively manage NBP’s exposure to foreign and domestic correspondence Manage the monetary aspect of NBP’s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank’s profitability Generation of incremental trade-finance business and revenues
NBP offers:
• •
The lowest rates on exports and other international banking products Access to different local commercial banks in international banking
DEMAND DRAFTS
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
MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market.
PAY ORDER *
NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive.
TRADE FINANCE OTHER BUSINESS LOANS
AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who produce some of the best agricultural products in the World.
CORPORATE FINANCE Working Capital and Short Term Loans:
NBP specializes in providing Project Finance – Export Refinance to exporters – Preshipment and Post-shipment financing to exporters – Running finance – Cash Finance – Small Finance – Discounting & Bills Purchased – Export Bills Purchased / Pre-shipment / Post Shipment Agricultural Production Loans
Agricultural Finance Services:
“I Feed the World” program, a new product, is introduced by NBP with the aim to help farmers maximize the per acre production with minimum of required input. Select farms will be made role models for other farms and farmers to follow, thus helping farmers across Pakistan to increase production.
Medium term loans and Capital Expenditure Financing:
NBP provides financing for its clients’ capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients’ attempt to upgrade and expand their operation thereby making possible the fulfillment of our clients’ vision. This type of long term financing proves the bank’s belief in its client's capabilities, and its commitment to the country.
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.
Loan Structuring and Syndication:
Agricultural (Medium Term):
Credit
National Bank’s leadership in loan
• • • • • • • •
Production and development Watercourse improvement Wells Farm power Development loans for tea plantation Fencing Solar energy Equipment for sprinklers
syndicating stems from ability to Forge strong relationships not only with borrowers but also with bank investors. Because we understand our syndicate partners’ asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction.
Farm Credit:
NBP also provides the following subsidized with ranges of 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
Cash Management Services:
With National Bank’s Cash Management Services (in process of being set up), the customer’s sales collection will be channeled through vast network of NBP branched spread across the country. This will enable the customer to manage their company’s total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, you’ll be provided everything, which takes to manage your cash flow more accurately.
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. If you require any further information, please do not hesitate to e-mail us.
FEATURES
National Bank of Pakistan is an established bank. It has some special features with the help of those it is growing rapidly.
Outstanding Work Environment
As the work environment plays a great role in this competition age, so the bank has good work environment. All the people work with co-operation; managers are so kind that each problem can be discussed with them.
Efficiency
Employees at National Bank of Pakistan are quite efficient. They work more the working hours and it is all according to their will. It also shows their loyalty, commitment to organization.
Customer Services
All the customers are entertained individually. Same kind of behavior and attentions is given to all customers.
Complaint Box
Getting ideas for improvement from the customer side is a new idea and that is working
Employee Benefits
Employees are given the benefits like bonus, gratuity funds, increments, house rents, medical and conveyance allowances.
Computerized working Environment
In the bank, all the work is done remotely. All the entries are made using the systems which are internally and externally integrated. This increase efficiency of the bank.
BRABCH LEVEL HIERARCHY MAIN BRANCH KHECHARY ROAD MULTAN
OPERATIONS DEPARTMENT
Operations department of the National Bank of Pakistan is responsible for the overall operations of the bank. Operations department has following segments. a) Cash b) Clearing c) Remittance d) Account opening e) Accounts department The details of those departments that are controlled under operation department are as under. a) Account opening b) Cash department c) Clearing d) Remittances
Account opening department
It is the most important department of bank. Following procedure is adopted for this purpose.
Procedure of Account Opening
It is very simple and quick procedure. A person who wants to open an account must have the introduction of bank’s staff or an already existing account holder of bank. The customer is required to fill an account opening form. Then signatures of the Introduce are verified from S.S. Card before opening account. They also have to give identity letter ? CNIC copies ? Passport size photograph
Following Factors Prior To Opening of Account Should Be Consider
1. The suitability of the perspective customers. 2. Verification of customer credentials. 3. The perspective possibility of profitability of the relationship. 4. The proposed relationship does not violate: A. SBP rules and regulations B. Applicable local laws C. The bank’s internal policies
Current Account
1. No limitation on frequency or amount transaction 2. No profit payable
Saving Account
1. Profit is payable 2. No of withdraw restricted 3. Large amount of withdraws requires 10 days.
General Principles
1. No account will be opened on fictitious name. 2. All documents necessary required for opening account must be taken after verification from original. 3. No operation of account should be allowed & check book must not be issued until all formalities are confirmed. 4. Genuineness of introduction should be properly ensured. 5. All information of AOF should be filled at front of concerned officer.
TYPES OF ACCOUNTS
The bank deals in different accounts opening; 1. Individual Account 2. Joint Account 3. Business Account 4. Partnership Account
SPECIAL TYPES OF ACCOUNTS
These types of accounts only can establish after approval of system and operation division head office
Trust Account o Account of executors/ administrators o Account of liquidators o Accounts of local authorities/ municipals.
CHEQUE BOOK ISSUENCE
When the Account is opened, then the customer is given a cheque book to sign upon and withdraw money.
Cash Department
Cash department of National Bank of Pakistan works under the operation department. This department is given the complete responsibility of cash, as result of transaction in touch local and foreign currencies. It is also responsibility for the book keeping of these transactions and the safe custody of cash. Out of five counters of cash department one counter is fixing for senior citizens and females. All counters are dealing at the same time in deposits, withdraw and online transaction processes. This department performs the main function. a) Cash receipts b) Cash payments
Clearing Department
Before discussing it is necessary to know what is “Clearing”. “The process by which cheques exchanged between the collecting and paying bank and the ensuing financial settlement is called “Clearing”. This facility is provided by the state bank of Pakistan for offsetting of cross obligations between the different banks. Clearing is of two types: 1) Inward clearing 2) Outward clearing
Accounts Department
Account department is the most important department of the bank. Because it is concerned with: ? ? ? ? Revenue Expenses Assets Liabilities
These are the pillars of any business. In this department, all the vouchers that are posted during one day are sent to the account department next day. These vouchers are already posted to computer by the concerned department.
Types of Account
? ? ? ? Current Account Saving Account Notice Deposit Term Deposit
Remittance department
The need of remittance is commonly felt in today’s business. A major function of any bank is to “transfer of funds from one place to another place” National Bank of Pakistan Uses the following modes of transfer of funds. • Demand Draft • Telegraphic Transfer • Pay Order • Call Deposit • Pay Slip • Money transfer
COLLECTION DEPARTMENT
All the cheques under collection are called cheques under collection in National Bank of Pakistan. There are two types of bills for collection: ? Outward Bills for Collection ? Inward Bills for Collection
FOREIGN EXCHAGE DEPARTMENT
“The transfer of credits to a foreign country to settle debts or account between resident of home country and those of the foreign country” or “the Foreign bills currencies etc used to settle such accounts”. Foreign Exchange department deals within exports imports and Money transfer. National Bank of Pakistan acts as importer bank as well as exporter bank for different parties who are interested in the business of export & import.
DEFINE IMPORT
All goods and services brought into a country that were purchased from organizations located in other countries.
DEFINE EXPORT
All goods and services sent from one country to another country.
Documents required for Export
The person who is exporting goods to the foreign countries requiring the following documents. • National tax number • Registration with export promotion Bureau • Sales tax registration • Commercial Invoices • Bill of Lading • Packing List • Bill of exchange • Promissory Note • E-Form • Letter of Credit • Certificate of origin • Beneficiary certificate After compiling the entire task by resident country that is exporting goods in favor of foreign importer now it will be his turn to make payment.
TYPES OF LETTER OF CREDIT
Importer bank issues a document on request stating that it will pay the exporter when exporter fulfill the terms of letter of credit. Letter of credit is of two types:
1. At Usance L/C 2. At Sight L/C
SIGHT L/C
Requires the importer / importing bank to pay as soon as it receives the clean documents from exporter.
USANCE L/C
It extends time period (30days, 60days, 90days, 120days, 150days, & 180days).to importing bank for payment. After specified time period importer have to pay. Letter of guarantee gives in behalf of person that I will pay in case of default.
SWIFT (Standard world wide inter financial transaction)
It is the only network. No institute involved among it.
CERTICICATE OF ORIGIN
This certificate shows that goods are from Pakistan.
COVERING SCHEDULE
If in covering schedule, it is given that “Please remit proceed to our Karachi office account # 574348812 with (Standard Chartered Bank) USA for onward credit to National Bank of Pakistan.
BENEFICIARY CERTIFICATE
If L/C requires some information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof.
E-FORM
E-form has four copies: ? ? ? ? One for custom officer One for exporter Triplicate copy for SBP Duplicate copy for bank
Bank reporting or duplicate and triplicate is done by bank. Custom officer should clear product. (Date is given on the foot form).
PAYMENT FROM IMPORTER BANK
It is the choice of importer to open L/C from any bank and the bank from which L/C is opened can also refer to some other bank for payment. So bill of exchange is sent to refer bank and other documents are sent to L/C opening bank.
IMPORTS
L/C is opened by the importer. There are two types of L/C: a) Revocable L/C b) Irrevocable L/C
NECESSARY REQUIREMENTS
If place of issue and port of loading is different on bill of lading, then along with the stamp of shipment on board, vessel name and port of shipment is written. A. Issue date of bill of lading – shipment on board. B. There should not be cutting on bill of lading without authentication. C. Bill of lading should show capacity of agent. If bill of lading can be taken by the agent of Importer Company, then his name should be mentioned on bill of lading. D. Original GSP should be presented. E. If TT reimbursement is not acceptable, it means bill of lading is necessary. F. When documents are received for export, do enter into lodgment register.
DOCUMENTS FOR IMPORT
I. II. III. IV. V. VI. VII. VIII. IX. X. Performa invoice signed by importer category pass book copy attested by any bank L/C opening application filled in by the customer Importer registration with export promotion bureau Annexure Verification of signature by S.S. Card L/C issued on basis of L/C application form Insurance if covered by buyer Insurance cover note Insurance policy
DOCUMENTARY CREDIT
TRADE SERVICE DEPARTMENT
National Bank of Pakistan has his full fledged trade service department. As a credit instrument and as a means of making as a payment the documentary credit is an essential instrument for conducting word trade today. A documentary credit represents a commitment bank to pay the seller of goods or services a certain amount provided present stipulated documents evidencing the shipment of the goods with prescribed period of time. For the cases of imports or exports first the parties have to do upon a sale contract regarding the term and condition of sale. One method of payment is by L/C which is secured and now a day mostly uses the business. Letter of credit is under taking by opening bank that it will make payment if documents are as per terms of LC.
Four parties are involved in Letter of Credit
1. Applicant Importer 2. Beneficiary Exporter 3. Issuing Bank Bank of importer 4. Advising bank Bank of importer According to import policy, no import is valid without import license which is issued by the chief controller of import and export or we can say export promotion bureau. If a person desires to take up import trade must get his name, his firm or his limited company, registered with EPB. On being granted registration certificate, he will be eligible to import goods according to import policy. There is no special condition of eligibility for registration. They only requirement is that he should be a Pakistani and must be registered with income tax department.
L/C OPENING PROCEDURE
When the importer obtained import license, then bank will open letter of credit. “A letter of credit is undertaking by LC opening bank to put an agreed sum of money to seller’s bank of behalf of the buyer of the goods under clearly defined terms and conditions”. Pakistani banks open only irrevocable LC. An essential feature of the irrevocable LC is that it can not be modified, altered, amended, or canceled without the prior consent of all the parties. Party comes to the bank and fills the form which is provided on the payment of Rs.100. This form is filled by the party and is return to the bank, it includes details like. ? Name of company ? Address
? ? ? ?
Country of origin Branch name Quantity Shipment to
? Insurance company ? Shipment from
One thing should also be submit which is INDENT. If the foreign party has any agent they will issue the indent with following details: o To Messer o Importers, etc
DOCUMENTS REQUIRED FOR L/C OPENING
When the bank opens L/C, it requires following documents: a) Valid import license b) Performa invoice c) Importer should be Pakistani d) Letter of undertaking from importer e) Insurance cover. An important point which the bank will consider before opening of LC is that sufficient funds be available in the LC opener’s accounts. At the time of establishment the LC the opening bank generally retains a maximum margin to safe guard its own commitment. The margin may vary from nil to 100% according to the nature of commodities and it also depends upon the party. At the item of establishing the LC opening bank charges bank commission, postage and other charges from the LC opener account. Another main important point is that value of LC should not increase the value of import license. After all the documents are being checked and signs are verified by the bank. A sanction slip is attached with each form so that the approval can be gained from the manager of the bank. After the approval is made four copies are prepared and the entries are made on the computer and the printout is taken the margin amount is checked from the importer account and if the amount is not found then L/C is not opened and the party is informed about the situation. On the deposit of the margin then L/C is opened LC limit if set by the bank are also checked. After the LC is opened following entries are made: A. LC opening register B. Margin / Liability Account Register.
PAYMENT TO SELLER
The negotiating bank upon receiving the documents from the seller checks the documents according to terms and conditions of credit upon satisfying it self of this the negotiating bank makes payment to the seller if sight credit. It then forwards the documents to the opening bank and reimburses it self through the opening banks account with itself.
DOCUMENTS RECEIVED BY THE OPENING BANK
Importer bank or opening bank receives the following documents from the exporter’s bank or negotiating bank. I. Bill of exchange II. Invoices III. Bill of lading IV. Certificate of origin V. Packing list VI. Insurance
OTHER RETAIL FUNCTIONS OF National Bank of Pakistan • National Bank offering Advance salary benefits
We all are aware that NBP advance salary is the market leader in Personal Loan category and is considered the largest Personal Loan Product of the country with loan disbursement of over Rs.80 Billion. One of the foremost reasons for this astonishing success is the fact that NBP kept on modifying the product parameters as and when required by keeping an eye on the changing market conditions and varying competition. The Bank has decided to make following changes in the product parameters to further improve the operational efficiency and Turn around Time (TAT) and to increase the disbursement pace.
DOCUMENTS REQUIRED
1. Borrower must be employee of the Federal /Provincial Government / Semi Government / Autonomous body / NBP. 2. CNIC copies of the borrower 3. Salary Slip indicating detail of salary of the borrower 4. Attested copies of CNIC by gazetted officer 5. Branch has obtained CIB Report of the borrower 6. Branch has obtained duly signed and stamped BBFS. 7. Customer written declaration giving details of all financial institutions. 8. DDO is signature has been verified 9. Loan will be approved after receipt of at least one salary in account. 10. The sanctioned amount of Advance Salary Finance doesn’t exceed 20 times. 11. The expiry of the NBP Advance salary is at least 6-months before retirement. 12. The repayment period does not exceed 60 months. 13. Three undated cross cheques in favor of NBP covering full amount of Finance have been obtained as security. 14. All documents have been obtained as per the requirement of NBP Advance salary scheme including undertaking as per scheme. 15. Documents have been recorded in Document Execution Register/ MISC security Register. 16. NBP offers mark-up 15% on principal amount at fixed rate. 17. There are bi variable rates offered by NBP for this service.
doc_650613283.pdf
This pdf is about NBP new report for internship report
PRESENTED BY:
Name: ROLL # Class
BAHAUDDIN ZAKARIYA UNIVERSITY MULTAN
OH GOD OPENS OUR EYES. TO SEE WHAT IS BEAUTIFUL OUR MIND TO KNOW WHAT IS TRUE, OUR HEART TO LOVE WHAT IS GOOD
Holy Prophet Muhammad (P.B.U.H) The greatest social reformer TO My Beloved Mother and Father Who taught us? The first word to speak The first alphabet to write
And
First step to talk……
To
All those from whom I learnt Who always remains? In our heart Through out the whole span of our life and are Nearest, dearest and deepest To us
CONTENTS
INTRODUCTION TO NATIONAL BANK………………….1 MISSION STATEMENT……………………………………..2 SERVICES OFFERED BY NATIONAL BANK…………….3 FEATURES…………………………………………………...4 BRANCH LEVEL HEIRACHCY…………………………….5 OPERATIONS MANAGEMENT…………………………….6 FOREIGN EXCHANGE DEPARTMENT………………........7 OTHER RETAIL FUNCTIONS………………………………8 DOCUMENTARY CREDIT………………………………….. SENIOR MANAGEMENT……………………………………. DIRECTOR’S REPORT………………………………………… FINANCIAL HIGHLIGHS…………………………………….. CORPORATE INFORMATION……………………………….. SWOT ANALYSIS……………………………………………. CREDIT DEPARTMENT……………………………………… GUIDE LINE OF CREDIT POLICY…………………………. CREDIT CYCLE……………………………………………… ATM FINDER…………………………………………………. NBP PRODUCTS………………………………………………. COLLECTION POLICY……………………………………….. TECHNOLOGY………………………………………………… NOTICE OF 55TH ANNUAL GENERAL MEETING…………. BALANCE SHEET……………………………………………… PROFIT & LOSS STATEMENT………………………………… CASH FLOW STATEMENT………………………………………
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.
VISION AND GOALS
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
INTRODUCTION
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 branches locally, internationally and representative offices.
We aim to be an organization that is founded on…
• • •
Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities.
We shall work to…
• • •
Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders.
We aim to be peopling who…
• • • Care
about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures of true success.
We have confidence that tomorrow we will be…
• • •
Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment
SERVICES OFFERED BY NATIONAL BANK OF PAKISTAN
INTERNATIONAL BANKING
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :• •
•
To effectively manage NBP’s exposure to foreign and domestic correspondence Manage the monetary aspect of NBP’s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank’s profitability Generation of incremental trade-finance business and revenues
NBP offers:
• •
The lowest rates on exports and other international banking products Access to different local commercial banks in international banking
DEMAND DRAFTS
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
MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market.
PAY ORDER *
NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive.
TRAVELER'S CHEQUE
Pak Rupees Traveler’s Cheques are a negotiable instrument Validity: Negotiability: Availability: Encashment: Limitation: Safety:
There is no restriction validity At 700 branches of NB country At all 400 branches of No limit on purchase NBP Traveler’s Cheq way to carry our mone
LETTER OF CREDIT
NBP is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
COMMERCIAL FINANCE
Let us help make your dreams become a reality Our dedicated team of professionals truly understands the needs of professionals, agriculturists, large and small business and other segments of the economy. They are the customer’s best resource in making NBP’s products and services work for them.
FOREIGN REMITTANCES
To facilitate its customers in the area of Home Remittances, National Bank of Pakistan has taken a number of measures to:
• •
Increase home remittances through the banking system Meet the SBP directives/instructions for timely and prompt delivery of remittances to the beneficiaries
PakRemit™ Remit funds from USA to Pakistan
New Features: The existing system of home remittances has been revised/significantly improved and well-trained field functionaries are posted to provide efficient and reliable home remittance services to nonresident Pakistanis at 15 overseas branches of the Bank besides Pakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia.
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Zero Tariffs: NBP is providing home remittance services without any charges. Strict monitoring of the system is done to ensure the highest possible security. Special courier services are hired for expeditious delivery of home remittances to the beneficiaries.
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SWIFT SYSTEM
The SWIFT system (Society for Worldwide Inter bank NBP Financial Telecommunication) has been introduced for SWIFT speedy services in the area of home remittances. The Network system has built-in features of computerized test keys, Click here which eliminates the manual application of tests that often cause delay in the payment of home remittances. The SWIFT Center is operational at National Bank of Pakistan with a universal access number NBP-PKKA. All NBP overseas branches and overseas correspondents (over 450) are drawing remittances through SWIFT. Using the NBP network of branches, you can safely and speedily transfer money for our business and personal needs.
SHORT TERM INVESTMENTS
NBP now offers excellent rates of profit on all its short term investment accounts. Whether you are looking to invest for 3 months or 1 year, NBP’s rates of profit are extremely attractive, along with the security and service only NBP can provide.
EQUITY INVESTMENTS
NBP has accelerated its activities in the stock market to improve its economic base and restore investor confidence. The bank is now regarded as the most active and dominant player in the development of the stock market. NBP is involved in the following: • • Investment into the capital market Introduction of capital market accounts (under process)
N.I.D.A
National Income Daily Account 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. MODE OF CALCULATION: AVERAGE BALANCE DURING A CALENDAR MONTH
NBP’s involvement in capital markets is expected to increase its earnings, which would result in better returns offered to account holders
INTERNATIONAL BANKING
National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is :• •
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To effectively manage NBP’s exposure to foreign and domestic correspondence Manage the monetary aspect of NBP’s relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the bank’s profitability Generation of incremental trade-finance business and revenues
NBP offers:
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The lowest rates on exports and other international banking products Access to different local commercial banks in international banking
DEMAND DRAFTS
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
MAIL TRANSFERS
Move your money safely and quickly using NBP Mail Transfer service. And we also offer the most competitive rates in the market.
PAY ORDER *
NBP provides another reason to transfer your money using our facilities. Our pay orders are a secure and easy way to move your money from one place to another. And, as usual, our charges for this service are extremely competitive.
TRADE FINANCE OTHER BUSINESS LOANS
AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidify faith, commitment and pride of farmers who produce some of the best agricultural products in the World.
CORPORATE FINANCE Working Capital and Short Term Loans:
NBP specializes in providing Project Finance – Export Refinance to exporters – Preshipment and Post-shipment financing to exporters – Running finance – Cash Finance – Small Finance – Discounting & Bills Purchased – Export Bills Purchased / Pre-shipment / Post Shipment Agricultural Production Loans
Agricultural Finance Services:
“I Feed the World” program, a new product, is introduced by NBP with the aim to help farmers maximize the per acre production with minimum of required input. Select farms will be made role models for other farms and farmers to follow, thus helping farmers across Pakistan to increase production.
Medium term loans and Capital Expenditure Financing:
NBP provides financing for its clients’ capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients’ attempt to upgrade and expand their operation thereby making possible the fulfillment of our clients’ vision. This type of long term financing proves the bank’s belief in its client's capabilities, and its commitment to the country.
Agricultural Credit:
The agricultural financing strategy of NBP is aimed at three main objectives:•
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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.
Loan Structuring and Syndication:
Agricultural (Medium Term):
Credit
National Bank’s leadership in loan
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Production and development Watercourse improvement Wells Farm power Development loans for tea plantation Fencing Solar energy Equipment for sprinklers
syndicating stems from ability to Forge strong relationships not only with borrowers but also with bank investors. Because we understand our syndicate partners’ asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction.
Farm Credit:
NBP also provides the following subsidized with ranges of 3 months to 1 year on a renewal basis.
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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
Cash Management Services:
With National Bank’s Cash Management Services (in process of being set up), the customer’s sales collection will be channeled through vast network of NBP branched spread across the country. This will enable the customer to manage their company’s total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, you’ll be provided everything, which takes to manage your cash flow more accurately.
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. If you require any further information, please do not hesitate to e-mail us.
FEATURES
National Bank of Pakistan is an established bank. It has some special features with the help of those it is growing rapidly.
Outstanding Work Environment
As the work environment plays a great role in this competition age, so the bank has good work environment. All the people work with co-operation; managers are so kind that each problem can be discussed with them.
Efficiency
Employees at National Bank of Pakistan are quite efficient. They work more the working hours and it is all according to their will. It also shows their loyalty, commitment to organization.
Customer Services
All the customers are entertained individually. Same kind of behavior and attentions is given to all customers.
Complaint Box
Getting ideas for improvement from the customer side is a new idea and that is working
Employee Benefits
Employees are given the benefits like bonus, gratuity funds, increments, house rents, medical and conveyance allowances.
Computerized working Environment
In the bank, all the work is done remotely. All the entries are made using the systems which are internally and externally integrated. This increase efficiency of the bank.
BRABCH LEVEL HIERARCHY MAIN BRANCH KHECHARY ROAD MULTAN
OPERATIONS DEPARTMENT
Operations department of the National Bank of Pakistan is responsible for the overall operations of the bank. Operations department has following segments. a) Cash b) Clearing c) Remittance d) Account opening e) Accounts department The details of those departments that are controlled under operation department are as under. a) Account opening b) Cash department c) Clearing d) Remittances
Account opening department
It is the most important department of bank. Following procedure is adopted for this purpose.
Procedure of Account Opening
It is very simple and quick procedure. A person who wants to open an account must have the introduction of bank’s staff or an already existing account holder of bank. The customer is required to fill an account opening form. Then signatures of the Introduce are verified from S.S. Card before opening account. They also have to give identity letter ? CNIC copies ? Passport size photograph
Following Factors Prior To Opening of Account Should Be Consider
1. The suitability of the perspective customers. 2. Verification of customer credentials. 3. The perspective possibility of profitability of the relationship. 4. The proposed relationship does not violate: A. SBP rules and regulations B. Applicable local laws C. The bank’s internal policies
Current Account
1. No limitation on frequency or amount transaction 2. No profit payable
Saving Account
1. Profit is payable 2. No of withdraw restricted 3. Large amount of withdraws requires 10 days.
General Principles
1. No account will be opened on fictitious name. 2. All documents necessary required for opening account must be taken after verification from original. 3. No operation of account should be allowed & check book must not be issued until all formalities are confirmed. 4. Genuineness of introduction should be properly ensured. 5. All information of AOF should be filled at front of concerned officer.
TYPES OF ACCOUNTS
The bank deals in different accounts opening; 1. Individual Account 2. Joint Account 3. Business Account 4. Partnership Account
SPECIAL TYPES OF ACCOUNTS
These types of accounts only can establish after approval of system and operation division head office
Trust Account o Account of executors/ administrators o Account of liquidators o Accounts of local authorities/ municipals.CHEQUE BOOK ISSUENCE
When the Account is opened, then the customer is given a cheque book to sign upon and withdraw money.
Cash Department
Cash department of National Bank of Pakistan works under the operation department. This department is given the complete responsibility of cash, as result of transaction in touch local and foreign currencies. It is also responsibility for the book keeping of these transactions and the safe custody of cash. Out of five counters of cash department one counter is fixing for senior citizens and females. All counters are dealing at the same time in deposits, withdraw and online transaction processes. This department performs the main function. a) Cash receipts b) Cash payments
Clearing Department
Before discussing it is necessary to know what is “Clearing”. “The process by which cheques exchanged between the collecting and paying bank and the ensuing financial settlement is called “Clearing”. This facility is provided by the state bank of Pakistan for offsetting of cross obligations between the different banks. Clearing is of two types: 1) Inward clearing 2) Outward clearing
Accounts Department
Account department is the most important department of the bank. Because it is concerned with: ? ? ? ? Revenue Expenses Assets Liabilities
These are the pillars of any business. In this department, all the vouchers that are posted during one day are sent to the account department next day. These vouchers are already posted to computer by the concerned department.
Types of Account
? ? ? ? Current Account Saving Account Notice Deposit Term Deposit
Remittance department
The need of remittance is commonly felt in today’s business. A major function of any bank is to “transfer of funds from one place to another place” National Bank of Pakistan Uses the following modes of transfer of funds. • Demand Draft • Telegraphic Transfer • Pay Order • Call Deposit • Pay Slip • Money transfer
COLLECTION DEPARTMENT
All the cheques under collection are called cheques under collection in National Bank of Pakistan. There are two types of bills for collection: ? Outward Bills for Collection ? Inward Bills for Collection
FOREIGN EXCHAGE DEPARTMENT
“The transfer of credits to a foreign country to settle debts or account between resident of home country and those of the foreign country” or “the Foreign bills currencies etc used to settle such accounts”. Foreign Exchange department deals within exports imports and Money transfer. National Bank of Pakistan acts as importer bank as well as exporter bank for different parties who are interested in the business of export & import.
DEFINE IMPORT
All goods and services brought into a country that were purchased from organizations located in other countries.
DEFINE EXPORT
All goods and services sent from one country to another country.
Documents required for Export
The person who is exporting goods to the foreign countries requiring the following documents. • National tax number • Registration with export promotion Bureau • Sales tax registration • Commercial Invoices • Bill of Lading • Packing List • Bill of exchange • Promissory Note • E-Form • Letter of Credit • Certificate of origin • Beneficiary certificate After compiling the entire task by resident country that is exporting goods in favor of foreign importer now it will be his turn to make payment.
TYPES OF LETTER OF CREDIT
Importer bank issues a document on request stating that it will pay the exporter when exporter fulfill the terms of letter of credit. Letter of credit is of two types:
1. At Usance L/C 2. At Sight L/C
SIGHT L/C
Requires the importer / importing bank to pay as soon as it receives the clean documents from exporter.
USANCE L/C
It extends time period (30days, 60days, 90days, 120days, 150days, & 180days).to importing bank for payment. After specified time period importer have to pay. Letter of guarantee gives in behalf of person that I will pay in case of default.
SWIFT (Standard world wide inter financial transaction)
It is the only network. No institute involved among it.
CERTICICATE OF ORIGIN
This certificate shows that goods are from Pakistan.
COVERING SCHEDULE
If in covering schedule, it is given that “Please remit proceed to our Karachi office account # 574348812 with (Standard Chartered Bank) USA for onward credit to National Bank of Pakistan.
BENEFICIARY CERTIFICATE
If L/C requires some information as proof of anything from exporter then exporter has to present beneficiary certificate for that proof.
E-FORM
E-form has four copies: ? ? ? ? One for custom officer One for exporter Triplicate copy for SBP Duplicate copy for bank
Bank reporting or duplicate and triplicate is done by bank. Custom officer should clear product. (Date is given on the foot form).
PAYMENT FROM IMPORTER BANK
It is the choice of importer to open L/C from any bank and the bank from which L/C is opened can also refer to some other bank for payment. So bill of exchange is sent to refer bank and other documents are sent to L/C opening bank.
IMPORTS
L/C is opened by the importer. There are two types of L/C: a) Revocable L/C b) Irrevocable L/C
NECESSARY REQUIREMENTS
If place of issue and port of loading is different on bill of lading, then along with the stamp of shipment on board, vessel name and port of shipment is written. A. Issue date of bill of lading – shipment on board. B. There should not be cutting on bill of lading without authentication. C. Bill of lading should show capacity of agent. If bill of lading can be taken by the agent of Importer Company, then his name should be mentioned on bill of lading. D. Original GSP should be presented. E. If TT reimbursement is not acceptable, it means bill of lading is necessary. F. When documents are received for export, do enter into lodgment register.
DOCUMENTS FOR IMPORT
I. II. III. IV. V. VI. VII. VIII. IX. X. Performa invoice signed by importer category pass book copy attested by any bank L/C opening application filled in by the customer Importer registration with export promotion bureau Annexure Verification of signature by S.S. Card L/C issued on basis of L/C application form Insurance if covered by buyer Insurance cover note Insurance policy
DOCUMENTARY CREDIT
TRADE SERVICE DEPARTMENT
National Bank of Pakistan has his full fledged trade service department. As a credit instrument and as a means of making as a payment the documentary credit is an essential instrument for conducting word trade today. A documentary credit represents a commitment bank to pay the seller of goods or services a certain amount provided present stipulated documents evidencing the shipment of the goods with prescribed period of time. For the cases of imports or exports first the parties have to do upon a sale contract regarding the term and condition of sale. One method of payment is by L/C which is secured and now a day mostly uses the business. Letter of credit is under taking by opening bank that it will make payment if documents are as per terms of LC.
Four parties are involved in Letter of Credit
1. Applicant Importer 2. Beneficiary Exporter 3. Issuing Bank Bank of importer 4. Advising bank Bank of importer According to import policy, no import is valid without import license which is issued by the chief controller of import and export or we can say export promotion bureau. If a person desires to take up import trade must get his name, his firm or his limited company, registered with EPB. On being granted registration certificate, he will be eligible to import goods according to import policy. There is no special condition of eligibility for registration. They only requirement is that he should be a Pakistani and must be registered with income tax department.
L/C OPENING PROCEDURE
When the importer obtained import license, then bank will open letter of credit. “A letter of credit is undertaking by LC opening bank to put an agreed sum of money to seller’s bank of behalf of the buyer of the goods under clearly defined terms and conditions”. Pakistani banks open only irrevocable LC. An essential feature of the irrevocable LC is that it can not be modified, altered, amended, or canceled without the prior consent of all the parties. Party comes to the bank and fills the form which is provided on the payment of Rs.100. This form is filled by the party and is return to the bank, it includes details like. ? Name of company ? Address
? ? ? ?
Country of origin Branch name Quantity Shipment to
? Insurance company ? Shipment from
One thing should also be submit which is INDENT. If the foreign party has any agent they will issue the indent with following details: o To Messer o Importers, etc
DOCUMENTS REQUIRED FOR L/C OPENING
When the bank opens L/C, it requires following documents: a) Valid import license b) Performa invoice c) Importer should be Pakistani d) Letter of undertaking from importer e) Insurance cover. An important point which the bank will consider before opening of LC is that sufficient funds be available in the LC opener’s accounts. At the time of establishment the LC the opening bank generally retains a maximum margin to safe guard its own commitment. The margin may vary from nil to 100% according to the nature of commodities and it also depends upon the party. At the item of establishing the LC opening bank charges bank commission, postage and other charges from the LC opener account. Another main important point is that value of LC should not increase the value of import license. After all the documents are being checked and signs are verified by the bank. A sanction slip is attached with each form so that the approval can be gained from the manager of the bank. After the approval is made four copies are prepared and the entries are made on the computer and the printout is taken the margin amount is checked from the importer account and if the amount is not found then L/C is not opened and the party is informed about the situation. On the deposit of the margin then L/C is opened LC limit if set by the bank are also checked. After the LC is opened following entries are made: A. LC opening register B. Margin / Liability Account Register.
PAYMENT TO SELLER
The negotiating bank upon receiving the documents from the seller checks the documents according to terms and conditions of credit upon satisfying it self of this the negotiating bank makes payment to the seller if sight credit. It then forwards the documents to the opening bank and reimburses it self through the opening banks account with itself.
DOCUMENTS RECEIVED BY THE OPENING BANK
Importer bank or opening bank receives the following documents from the exporter’s bank or negotiating bank. I. Bill of exchange II. Invoices III. Bill of lading IV. Certificate of origin V. Packing list VI. Insurance
OTHER RETAIL FUNCTIONS OF National Bank of Pakistan • National Bank offering Advance salary benefits
We all are aware that NBP advance salary is the market leader in Personal Loan category and is considered the largest Personal Loan Product of the country with loan disbursement of over Rs.80 Billion. One of the foremost reasons for this astonishing success is the fact that NBP kept on modifying the product parameters as and when required by keeping an eye on the changing market conditions and varying competition. The Bank has decided to make following changes in the product parameters to further improve the operational efficiency and Turn around Time (TAT) and to increase the disbursement pace.
DOCUMENTS REQUIRED
1. Borrower must be employee of the Federal /Provincial Government / Semi Government / Autonomous body / NBP. 2. CNIC copies of the borrower 3. Salary Slip indicating detail of salary of the borrower 4. Attested copies of CNIC by gazetted officer 5. Branch has obtained CIB Report of the borrower 6. Branch has obtained duly signed and stamped BBFS. 7. Customer written declaration giving details of all financial institutions. 8. DDO is signature has been verified 9. Loan will be approved after receipt of at least one salary in account. 10. The sanctioned amount of Advance Salary Finance doesn’t exceed 20 times. 11. The expiry of the NBP Advance salary is at least 6-months before retirement. 12. The repayment period does not exceed 60 months. 13. Three undated cross cheques in favor of NBP covering full amount of Finance have been obtained as security. 14. All documents have been obtained as per the requirement of NBP Advance salary scheme including undertaking as per scheme. 15. Documents have been recorded in Document Execution Register/ MISC security Register. 16. NBP offers mark-up 15% on principal amount at fixed rate. 17. There are bi variable rates offered by NBP for this service.
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