SM Internship Report

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SECTION-I
CHAPTER # 1
INTRODUCTION TO REPORT
1.1: BACKGROUND OF STUDY:
The most important aspect in any developing country is the economic growth and the growth of
its financial intermediaries monetary based institutions. So banking sector is considered can be
considered as the backbone of economy of any country as it plays vital role in the pooling of
money and financing oppurtunities which provide capital flow to the business and help in
developing the economy. development of the economy. Now banking sector has expanded its
business to the all the sectors of economy like industrial sector, trade and commerce, agriculture
sector, automobiles etc.
Banking sector has now great importance due to its importance in different aspects like
borrowing, advancing, remittances, home remittances etc.
There is gap between industry and universities and students knows a lot about theory of
management but lack practical experience. In order to reduce the gap, business schools make it
mandatory for every business graduate to undertake two month internship. In persuence of BBA
(Hons) degree I choose to spent two month in NIB bank to complet my internship requirement.
This report is concern with analysis of NIB bank which I observe in my two months experience
in the Bank.
1.2: PURPOSE OF STUDY:

This study accommodates many purposes like short term and long term. Short term purpose of
the study is fulfill the requirement of BBA (Hons) degree and achieve my short term goals. In
Longer term this study help to apply and observer the method that how threoritical knowledge in
real corporate world. The study also incudes the analysis portion which strengthen critical
thinking about the procedures and process that are smoothly runnings in organization.
Beside this study also serves another two purpose such as guidline for NIB Banks and
knowledge for junior students. This study endavours to hightlight strength and weaknesses of the
bank and if management consider it for improvement it will be helpful for Bank. Finally the
report will also be helpful for my junior students in preparing their own report and also provide
them practical knowledge which I gain in two month internship.
INTERNSHIP REPORT NIB
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Banking is of different kinds commercial, customer, financial, advisory, administrative etc. The
basic other minor purpose purpose of this study is to explore the main functions, operations,
services and products of the NIB bank Limited 83E/1 main boulevard Gulberg III Lahore. In this
study i will tell about all the departments in bank Limited 83E/1 main boulevard Gulberg III
Lahore and all the functions that are being performed in all those departments and the services
the NIB bank Limited 83E/1 main boulevard Gulberg III Lahore is offering.
1.3: SCOPE OF THE WORK:

The study is confined to banking operations that includes general banking as well as operations.
As we had limited time period and bundles of information to get from different resources for our
internship that includes learning all the functions and operations practically as well as to collect
data for report writing. So this study includes the main aspects of the NIB bank Limited 83E/1
main boulevard Gulberg III Lahore Branch. As of your interest it should be clear to you that on
macro level NIB have three departments i.e. Operation, General Banking and Credits. So in this
study I will mainly focus on General Banking and credits department.
1.4: METHODOLOGY OF RESEARCH:

There is I have used both the primary and secondary data that i have is collected from different
resources and i have been used that data in the compilation of this report. Methodological tools
used were:
1.4.1: Primary Data:

The primary and the main source of the information were the interviews that i had has been to
conducted both formal and informal interviews from different employees in different
departments. Other thing sources of for primary data was the personal observation from their
routine work.
1.4.2: Secondary Data:
Secondary data that are used in this study are I had to use different secondary sources to get the
information. I used annual reports, brochures, internship reports, different memos and web site of
through the internet from NIB Limited Site ....
www.nib.com.pk
1.5: Scheme of Report:

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This report has been divided into four main sections in the following sequence:
Section -I consists of Chapter 1 that includes background of the study, purpose of study, scope of
work, Methodology of research and finally schemer of report.
Section-II consists of Chapters 2 to 4 that include the organizational review like background,
history of NIB, organization structure, about Gulberg III branch of NIB, departmentation of NIB.
Section-III consists of Chapter 5,6 and 7 that includes Financial, ratio analysis and SWOT
analysis of NIB.
Section-IV consists of summary of the findings and recommendations and conclusions.
Section-V consists of bibliography
Chapter #2
HISTORICAL BACKGROUND
2.1: BANKING HISTORICAL BACKGROUND:
2.1.1: Evolution of Banking:
Before going towards the history of NIB it is very necessary to illustrate a little bit of history of
banking that implies evolution of banking and origin of banking. It has not so far been decided as
to how the word 'Bank' originated. Some authors opine that this word is derived from the words
'Bancus' or 'Banque' which means a bench. The explanation of this origin is attributed to the fact
that the Jews in Lombardy transacted the business of money exchange on benches in the market
place. Incidentally the word 'Bankrupt' is said to have been evolved from this practice. The
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opponents of this opinion argue that if it was so, then how it that the Italian money changers were
never is called 'Banchierei' in the middle ages? Other authorities hold the opinion that word
'Bank' which means 'Joint stock fund'. Later on, when the Germans occupied major part of Italy,
the word 'Bank' was italicized into 'Bank'.
2.1.2: Origin of Banking:

Banking as profession is very old in history, as early as 2000 B.C; some sort of banking had been
developed by the Babylonians. They used their temples as their banks and the priests acted as the
financial agents. But the spread of disbelief in religion destroyed the public confidence in
depositing money and valuable in temples.
Generally the word "Bank" has been originated in Italy. In the middle of 12 th century there was a
great financial crisis in Italy due to war. To meet the war expenses the Government of the period
imposed a forced subscribed loan on citizens of the country at the interest of 5% annum. Such
loans were known as "ComparaMintuo" etc.
The development of banking can we divided into various stages.
The first stage in development of banking was accepting of deposits of cash from people. The
Goldsmiths used to issue bank notes for the money deposited with them.
This was the second stage in the development of banking. Charging interest from the
depositors began to give them interest and in the fourth stage, they allowed the depositors
the overdraft facilities.
With the passage of time, the activities of commercial banks have greatly increased.
2.1.3: Modern Definition of Bank:

Banks are the companies "which transact the business of banking". The companies operate in
accordance with the provisions of the banking companies ordinance, 1962 section 5(b), which
states that " banking means the accepting, for the purpose of lending or investment, of deposits
of money from the public, repayable on demand or otherwise, and withdrawal by cheques, drafts,
and order or otherwise.
There are different views about the words Bank. Some historians claim
that it is coined when Jews transact banking business in Lombardy and sits
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on benches. The word is derived from Banque which means bench. Another
view from historians is that it is derived from German words Back which
means Joint stock fund and the word change its sound to bank after German
occupation of Italy.
2.2 History of Banking in Pakistan

Formally, banking history in Pakistan started during the era of great Britain
colonialism in sub contents. After 1947, when Pakistan emerged as separate
country on map of the world, Quaid e Azam Muhamamsad Ali Jinnah took
action and establish central bank of Pakistan which is now State Bank of
Pakistan, with its Headquarter to based in Karachi.
To cut the long story short, Pakistan get in inheritance 631 offices of 45
scheduled banks ( 487 in West Pakistan and 114 in East Pakistan) and 500
offices of small and non scheduled banks. Beside this foreign banks operated
only 19 branches at the time of independent. It was hard time when Indian
bankers shifted their head offices and capital to India. Consequently, the
number of offices reduced to 195 from 631. Habib Bank and Australia Bank
Limited were owned by Muslims bankers and shifted only 19 branches to
Pakistan.
In 1974 all domestic commercial banks were nationalized by the
Government. The Pakistan Banking Council was established, which assumed
the role of a banking holding company but with limited supervisory powers.
However, PBC was dissolved in 1997, leaving the SBP as the sole regulatory
authority for banks and financial institutions in Pakistan. Nationalization of
the banking sector led to pet projects. The branch network of NCBs
also proliferated in an effort to provide banking services to all
regions/territories of the country, often with disregard to the viability or
feasibility of such expansion.
2.1.4: Types of Banks:

Primarily all banks gathered temporarily idle money for the purpose of lending to others and
investments which bring gain in the form of return, profit and dividends etc. However, due to the
variety of resources of money and the diversity in lending and investment operations, banks have
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been placed in various categories:

1. Commercial Banks:
The commercial banks receive deposits from the general public which are repayable on demand
upon written orders of the depositors.
2. Merchant Banks:
Merchant banks are those which have been mainly financing the domestic and international trade
in United Kingdom. During the late eighteenth and early nineteenth centuries the trade between
countries was financed by bills of exchange by well reputed merchant houses for which they
would charge a commission for their services.
3. Saving Banks:
The basic purpose of these banks is to include the habit of savings in the people. The saving
banks deposits are not repayable upon only the written orders of the depositor but the depositor
or his agent has to appear personally at the saving bank to make withdrawal.
4. Mortgage Banks:
These banks mainly deal in loans for the acquisition or construction of real estate against the
security of mortgages.
5. Consumer Banks:
These banks provide finance for purchasing consumption goods for the use of the borrowers.
6. Investment Banks:
The investment banks assist business houses and the Governmental bodies to raise money
through the sale of stocks and bonds for usually long term purposes.
7. Development Banks:
These banks have been established to provide long term development finance to the trade,
commerce, and industry.
8. Corporative Banks:
These are the banks established and registered as a co-operative venture to provide banking
facilities to members of the cooperative.
9. Eximp Banks:
These are the banks which provide finance for promotion of imports and exports to trade,
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commerce and industry.

10. Central Banks:
Central banks occupy unique position in the banking structure of a country because they have
been entrusted with the responsibility of controlling the money supply, interest rates and
financial market of the country for the purpose of economic development.
2.1.5: Development of Banking in Pakistan:

In order to regulate the growth of banking on sound footings, the following measures were taken
to develop the banking system in Pakistan.
The State Bank of Pakistan, which is the central bank of the country, was established on
1st July, 1948.
The National Bank of Pakistan was established on Nov 21st, 1949. (This bank serves as
an agent to the SBP).
1961, with a paid up capital of Rs. 5 crore.
The Agriculture Development Bank of Pakistan (ADBP) was set up in 1961.
In January 1974, all the commercial banks were nationalized. The weaker commercial
banks were merged with the stronger ones and in all 5 major banking companies were
formed namely HBL, UBL, NBP, MCB and ABP.
The Pakistan banking council was set up for coordinating the activities of nationalized
commercial banks. The banking council formulates policies and guidelines for the banks.
Interest has been eliminated from the banking transactions from July 1st, 1985. The banks
are now accepting saving deposits on profit and loss sharing basis. Modarba and leasing
companies are also operating in Pakistan.
The Nationalized banks due to many weaknesses such as overstaffing, deteriorations in

customer's service, rising bad debts, loans on political basis etc. are being gradually
denationalized. MCB was privatized in April 1991 due to these very reasons.
The permission to open investment bank will go a long way in providing capital for the
industrial projects.
The Government of Pakistan has also liberalized the exchange and payments procedures. The
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Pakistanis, firms, companies can now maintain foreign currency accounts in Pakistan on the
same basis as non-Pakistani can.
2.1.6: Commercial Banking in Pakistan:

Commercial banks are companies "which transact the business of bank in Pakistan". The
companies ordinance section 5 (b) of which says: "Banking means the accepting for the purpose
of lending or investment of deposit of money from the public repayable or otherwise and
withdrawal by cheques, drafts, orders or otherwise".
Commercial banks have to play a key role in regeneration of economic activity in the country. In
addition to the vital task of resource mobilization, they make short-term self-liquidation loans to
finance business, agriculture and industry. They also perform many other minor services such as
taking care of valuables and remittances of money.
2.2: NIB BANK LIMITED HISTORY:

See the New Documents Chapter 3.
NIB Bank started operations in October 2003 when National Development Leasing Corporation
(NDLC) and the Pakistan operations of IFIC Bank were amalgamated. The Bank grew rapidly
and further acquisitions took place the Pakistan operations of Credit Agricole Indosuez were
acquired in April 2004, and in 2007, PICIC Commercial Bank Limited merged with the Bank.
Temasek Holdings of Singapore continues to be the largest single investor in NIB Bank, through
its wholly owned subsidiary, with a stake in excess of 88%.
NIB Bank is one of the largest foreign banks in Pakistan with an extensive branch network
spread over 52 cities across the country. It is also one of the largest corporate entities of the
country with a paid up capital of PKR 103 billion. The Bank continues to serve its customers for
all their financial and banking needs through its network of 170+ branches, all connected online
and 160 ATMs.
NIB Bank is headquartered at the PNSC Building in Karachi, Pakistan. Six floors of this iconic
building serve as the nerve center of the Banks footprint in Pakista
2.3: VISION OF NIB:

To be a high performance bank admired for Innovations, customer service and Inspired
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Employees.
2.4: CORE PURPOSE:
Enabling success; realizing dreams.
2.5: VALUES:
To truly understand NIB Banks culture, it is important to explore our core Values. Our Values
emulate the behaviors, beliefs and criteria for decision making that enables us to fulfill promises
to our customers, colleagues and the community. Our core values are:
Responsive
One Bank
Integrity
Excellence
2.6: WHAT NIB DOES? It should be in Paragraph and see the new doucment
Wholesale banking
Consumer banking
Commercial banking
Commercial banking:
Corporate banking
Financial institution
Investment banking
Treasury
Transaction banking
Consumer banking:
Deposits
Consumer loans
Wealth management
Exclusive banking
Small business solutions Remote banking channels
Commercial banking:
Trade finance
Working capital finance
Seasonal finance
Medium term finance
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2.7: Products of NIB:
The most powerful current account

Cash Guard
Cash Guard plus
BANC insurance
The Most Powerful Personal Installment Loan
The Most powerful Auto Loan
2.8: Future prospect of NIB:

We expect that the banking sector in Pakistan will remain extremely competitive for the
Foreseeable future. Therefore, the success of any new institution will be a function of its Clarity
of vision and efficiency of implementation. While we are confident that NIB Bank will achieve
strong growth in revenues, we believe it is necessary to create the correct foundation for
sustainable growth into the future. With an acceptable level of controls and an appropriate level
of technology infrastructure, NIB Bank is poised to offer incomparable services to its valued
clients through its countrywide network of branches.
2.9: Features of NIB: the features of NIB are:
Computerized
Online banking.
2.9.1: Computerized:
The branches of NIB BANK Ltd. are fully equipped with latest computer available in market.
Computer replaced the manual banking & through PIBAS software any transaction can be checked.
In other words, the operations become quick and hassle free.
2.9.2: Online Banking:

All the computers of NIB BANK Ltd. are linked with each other and through PIBAS software the
NIB BANK Ltd. is providing the facility of online banking to its customers.
2.10: Sources of Funds:

Sources of fund include Capital, Reserves, and Deposits & Borrowing. Capital is increased in five
years. In 2005 the capital increased by 0.2 billion. In 2007 it is increased by 1.8 billion. This increase
is because of issuance of additional shares.
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2.11: Company Information:

Board of Directors
NAME
DGNIZATION
Francis Andrew Rozario
Director/Chairman
Tan Soo Nan
Director
PhuaKok Kim
Director
Thomas P. Sodano
Director
MahmudulHaqBhuiyan
Director
Syed AamirZahidi
Director
Willie Wai Kong Chan
Director
KhawajaIqbal Hassan
Director / President & Chief Executive
Aurangzeb Amin
Company Secretary
YameenKerai
Chief Financial Officer
Rizvi,
Isa,
Afridi
Advocates and Corporate Counsellors
and
Angell
Auditors
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M. YousufAdilSaleem& Co. Chartered Accountants
Auditors
2.12: ORGANIZATIONAL STRUCTURE:

2.12.1: ORGANOGRAM (COMMERCIAL BRANCH STRUCTURE):
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Officer
Imports/Exports
Relationship
Officer
Support Officer
Relationship Officer
Support Officer
Head Teller
Senior Officer Accounts & Admin

Relationship Officer Consumer
TellerOfficer Account Opening Cheque Books & ATM Cards

Teller
Officer Customer Services Back Office, Remittance Deposit Receipts & Lockers
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2.12.2: Organizational structure of NIB:
CHAPTER # 3
ABOUT
NIB
83E/1
MAIN
BOULEVARD
GULBERG
III
BRANCH:
The Branch is situated at 83E/1 main boulevard Gulberg III Lahore. The branch was opened in
2008. NIB Bank 83E/1 Main Boulevard Gulberg III Lahore branch is situated in the main
commercial area of Lahore. The premises are well-equipped and well-furnished and designed to offer
maximum facilities to the customer in a building. The branch is located in the mid of the city so its quite
easy to excess the customers. The branch was renovated according to the new and current
requirements. There are 19 employees in the branch.
Area distributor manager

Floor manger
Operation manager
Four relationship managers
Four BCOTs
Six CSS
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Two CCR
Area Distribution manager looks after all the branches growth n businesses.
Floor Manager looks after branch businesses and growth.
BCOTs are the relationship officers while RMs are relationship managers who serves the
customers.
Operation manager looks after all the branch operations including supervision of entries, lockers,
vaults and etc.
CSS does all on counter and cheque transfer transactions.
CCR looks after first point of contact for the clients.
All the employees of the branch are efficient, skilled, educated, and well-mannered. The
employees take their responsibities efficiently and effectively and the employees are supportive
to each other. I have observed that the branch is having great business and the management of
the staff is efficient and professional and the employees of the branch have good relationship
with their clients and customers. The suitable location facilities and the friendly employees make
the customers visit convenient pleasure. As an internee I enjoyed my stay at NIB main
boulevard Gulberg III Lahore branch and got good staff to support me as well as tell me about
the banking services and the products. The staff also helped me in my way to professionalism.
The environment of the branch was brilliant both professionally and friendly.
The branch is well maintained and decorated with the latest equipment.
The environment of the branch is attractive for the customers
3.1: Types of accounts and services offered by the branch:

Basic banking account
Saving account
TDR facility
ATM facility is available by 24/7
Lockers facility
3.2: Departments in the branch:

Account opening department
Clearing department
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Remittances department
Cash management department
Credit department
CHAPTER # 4
DEPARTMENTATION
4.1: DEPARTMENTATION AT HEAD OFFICE OF NIB
There are various divisions at the head office of NIB, each division is called a specialized unit
and performs different functions as to achieve overall goals and objectives of theNIB. Following
are the divisions at head office of NIB:
4.1.1: Credit Division:

The Credit Division (CRD) primarily concentrates on the evaluation and appraisal of the credit
proposals through a team of highly experienced professional bankers at all levels. The
evaluations system comprises of well-defined multi-tier credit appraisal procedures with
extensive guidelines covering the qualitative and quantitative aspects of credit evaluation. The
emphasis has always been on the diversification of the Banks risk assets to avert large-scale
industry and single party exposure. Most of the advances are short-term trade related on a secure
and self-liquidating basis.
4.1.2: Electronic Technology:

The Electronic Technology Division (ETD) has been the most visionary of all the Banks
operating units. It has established NIB Bank as the leading provider of electronic services and
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solutions to its customers, and continues to lead in innovations and introduction of new
technology based products.
4.1.3: System and Operation Division:

The System and Operation Division (SOD) has been instrumental in the development of
procedures and manuals for various operating requirements of the Bank. After careful mapping
of existing process flows, SOD recommends automation and re-engineering requirements to
improve transaction efficiencies. It is also responsible for the procurement of equipment of
branches, and coordinates the development of new branch premises.
4.1.4: Asset Products Division:

The Asset Products Division (APD) is engages in the development and management of retail
credit schemes. The consumer market in Pakistan has not only grown exponentially over the last
decade or so, but the needs of this segment have become extremely diverse.
4.1.5: Investments Products Division:

Responsible for developing and managing brands which serve the investment needs of the
consumer market, this unit focuses on deposit mobilization, provision of the value added services
based on the modern technology and undertaking the centralized marketing and advertising of
the Bank. The unit is also actively involved in the acquisition business and has signed up over
300 merchants nationwide which offer shopping discounts to the Banks privilege card
members. LikeNIB Banks value plus is a unique deposit account.
4.1.6: International Division:

The International Division (IND) mainly responsible for managing correspondent banking
relationships and planning overseas operations, the division plays vital role in extending foreign
trade transactions support to the branches. The bank became a member of SWIFT in the year
2000; with network of correspondent spread over Countries worldwide.
4.1.7: Treasury:
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Responsible for managing Banks liquidity and foreign exchange transactions. NIB treasury is
one of the most active in the market. Through report transaction, purchase of Government paper
and foreign exchange trading, the division adds substantially to the Banks sustained earnings. It
also reports to the State Bank of Pakistan on regular basis.
4.1.8: Corporate and Merchant Banking Division:

The Corporate and Merchant Banking Division (CBR) is engaged in the provision of financing
facilities to large corporate clients inducting multinationals. Principal activities include
syndicated loans, guarantees, and working capital finance and underwriting and advisory
services. The division has played important role in providing development finance for the
modernization and expansion of countrys core industries like fuel and energy, chemicals, textile
and fertilizers.
4.1.9: Credit Card Division:

The Credit Card Division (CCD) manages the NIBMaster Card brand and is headquartered at
Karachi. With a new fully automated transaction processing system, the product was re-launched
in 2001 and supported by an aggressive marketing campaign the portfolio now comprises of in
less thanYears. The card is accepted worldwide and at locations in Pakistan.
4.1.10: Planning and Corporate Affairs Division:

The planning and Corporate Affairs Division (PCD) is relatively new division set up in
September 2002. It has been established to provide strategic direction to the Bank having a
futuristic outlook. It envisages undertakings that would build towards a solid, stable but rapid
growth and would result in sustained profitability.
4.1.11: Human Resource Division:

Strategically, perhaps the most important division at the head office is responsible of human
resource management, including recruitment staff training and evaluation the division also
handles matters relating to administration. This division operates on a future orient strategy
focusing on employees personal and professional growth.
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4.1.12: Internal Audit Division:

The Audit Division reports directly to the board through the executive committee. This is also the
audit committee. The audit division acts completely independent of the management and is
responsible for checking and reporting on the managements complacence with the boards
policies and directives as also the prudential regulations and other directives of the SBP.
4.1.13: Finance Division:

The Finance Division (FND) is responsible for bookkeeping and account, this division of the
head office, prepares all financial returns and the MIS through is management reporting wing,
the division is actively involved in preparing market consolidation of Banks budgets, its
monitoring and constant review of financial indicators.
4.2: GEOGRAPHICAL DEPARTMENTATION:
NIB have 69 branches in Sindh

75 branches in Punjab
10 branches in KPK
04 branches in Baluchistan
11 branches in Islamabad
02 branches in Azad Kashmir
4.3: DEPARTMENTS OF NIB 83E/1 MAIN BOULEVARD GULBERG III

BRANCH:
There are 3 main departments at the branch:
1. ACCOUNT OPENING DEPARTMENT
2. OPERATIONS DEPARTMENT: FUNCTIONS PERFOMED:
CLEARING
REMITTANCE
3. CREDIT DEEPARTMENT
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4.3.1: Account Opening Department:the department open new accounts and provide
ATMs to the account holders.
List of types of Accounts offered by:

Basic banking account
Regular Savings account
Monthly munafa account (special savings account)
Senior citizens account (special savings account)
4.3.2: List of Documents for the Account Opening Form:

4.3.2.1: Personal account:
Original CNIC
Photo copy of CNIC
Business proof
Account opening form
SS card
Indemnity
Know your customer KYC form
NICOP
4.3.2.2: SALARIED ACCOUNT:
Original CNIC/Overseas care/NICOP

CNIC copy
Employment proof /request of account opening on letter head
AOF(Account opening form )
SS(signature specimen ) card
KYC
Indemnity
Joining date on employment proof, company authorized person signature and company
stamp
In case of other than English signature vernacular indemnity attached with AOF.
4.3.2.3: Student account:

AOF
SS card
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Original CNIC
CNIC copy
KYC Form
Student card original
Student card copy
Signature differ indemnity
4.3.2.4: Photo account:
AOF
SS card
Original CNIC
CNIC copy
KYC Form
Signature differ indemnity + vernacular indemnity
Two passport size photographs
Photographs attached with AOF, SScard, indemnity LTI & RTI
Photo on AOF and SS card should partially signed and stamped by branch manager
Employment proof along with joining date
4.3.2.5: Sole proprietorships account:
AOF
SS card
Original CNIC
CNIC copy
KYC Form
Three letter heads
Account opening request on letter head
Sole proprietor declaration on letter head
Title of account and stamp should be same
Original NTN/copy
Title of account as per company name
4.3.2.6: Partnership account (unregistered):

AOF
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SS card
Original CNIC
CNIC copy
KYC Form (company accounts kyc)
Partnership deed
Partnershipmandate
4.3.2.7: Partnership account (registered):
AOF
SS card
Original CNIC
CNIC copy
KYC Form (company accounts kyc)
Partnership deed
Partnership mandate Form C
4.3.2.8: Private ltd co.:

Original CNIC+ copy CNIC of directors
List of directors
Boards of resolution
Form A
Form 29
NTN original + copy
MOA + AOA
4.3.2.9: Public limited company:

Original CNIC+ copy CNIC of directors
List of directors
Boards of resolution
Form A
Form 29
NTN original + copy
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MOA + AOA
Form C
4.3.2.10: Trust account:
Original CNIC
Photo copy of CNIC
SS card
Indemnity
Know your customer KYC form
Trust deed registered
List of trusties
Financial statement
4.3.3: Remittance Department:

Remittance department deals with money transfer. The instruments that are accepted by the
remittance department of NIB are:
Pay slips
Pay orders
Demand drafts
Telegraphic transfer
Online transfer
4.3.4: Clearing Department:

This department is responsible for the clearing of all the instruments that comes for inward or
outward clearing.
4.3.5: Cash Department:
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This department is responsible for the receipts and payments of money. Their duty is to collect
the receipts of the customers or make the payment on the representation of instruments.
4.3.6: Credit / Advances Department:

The main function of the bank is advancing loan and in return charges interest. Credit department
takes care of advances. Credit department first check the feasibility of the application, and then
send the application to the Head Office. If Head Office accepts the application, the credit
department disburses the loan to the applicant. After the disbursement of the loans they calculate
the paid amount and the remaining amount on monthly basis.
CHAPTER#5
PLAN OF MY INTERNSHIP PROGRAM
5.1Starting and the ending dates of my internship:
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18 August to 28 September
5.2Names of the departments in which I got training and the duration of my
training:
Account opening department
Cash department
Credit department
Clearing department
Remittances department
5.3 During six weeks of internship I have learned the following:
Account opening
inward clearing,
outward clearing,
inward/outward foreign remittances,
FDD issuance ,
cash,
Pay order,
Fund transfer same bank(IBFT),
funds transfer from one bank to another bank,
use of debit card,
Debit card issuance,
check book issuance,
single check issuance,
lockers,
OBC(Outward Bill of Collection),
OFBC(Outward Foreign Bills for Collection,
RTGS(Real Time Gross Settlement),
Internet banking,
Product knowledge,
Salary transfer,
CMS(Complaint Management System),
T.24 (network),
Order taking,
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Fees collection.
Term Deposit Receipt
Profit calculations
5.4: Schedule of learning:
5.4.1: In first week:
I have learned the following accounts opening procedure:
Personal Account opening

Salary Account opening
Students Account opening
Photo Accounts opening
Housewife Account opening
5.4.2: In second week:

I have learned the following accounts opening procedure:
Sole proprietorship
Partnership(unregistered)
Partnership(registered)
Private Limited co.
Public limited company
Trust Account
5.4.3: In third week:
Product knowledge,
inward clearing,
outward clearing,
inward/outward foreign remittances,
FDD issuance ,
cash,
Pay order,
5.4.4: In fourth week:

funds transfer from one bank to another bank,
use of debit card,
Debit card issuance,
check book issuance,
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single check issuance,

lockers,
5.4.5: In fifth week:
OBC(Outward Bill of Collection),

OFBC(Outward Foreign Bills for Collection,
RTGS(Real Time Gross Settlement),
Internet banking,
Salary transfer,
5.4.6: In sixth week:
Salary transfer,
T.24 (network),
Order taking,
Fees collection.
Term Deposit Receipt
Profit calculations
SECTION-III
CHAPTER # 6
6.1: FINANCIAL ANALYSIS See the new chapter
The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range of
users in making economic decisions. Owners and managers require financial statements to make
important business decisions that affect its continued operations. Financial analysis is then
performed on these statements to provide management with a more detailed understanding of the
figures. These statements are also used as part of management's annual report to the
stockholders. The purpose of financial statement analysis is to examine past and current financial
data so that a company's performance and financial position can be evaluated and future risks
and potential can be estimated. Financial statement analysis cans yield valuable information
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about trends and relationships, the quality of a companys earnings, and the strengths and
weaknesses of its financial position.
6.1.1: BALANCE SHEET:Balance sheet is the summary of a firms financial position on a

given date that shows total assets, total liabilities and owners equity.
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6.1.2: Cash flow statement: the statement that shows the businesss cash inflows and
outflows.
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6.1.3: Income Statement:

Income statement is the major device for measuring the profitability of the firm over a period of
time. It is also known as Profit and Loss Statement.
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6.2: RATIO ANALYSIS
Liquidity Ratio:
Advances to deposit ratio:Total advances in the year/total deposit in the year
Earning asset to asset ratio: earning asset/assets
1: Current Ratio = current asset /current liabilities.

Years
2008
c.ratio
1.28
09
1.24
10
1.09
11
1.09
12
1.07
13
1.08
14
1.08
Current Ratio
1.3
1.25
1.2
1.15
1.1
1.05
1
0.95
2008
2009
2010
2011
2012
2013
2014
Current Ratio
2: Quick acid ratio= current assets inventory/current liabilities

3: cash ratio= cash+ marketable securities/ current liabilities
The nib is service oriented industry thats why it not required to maintain any
inventory so this ratio is meaningless in case of nib
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B. ASSETS turnover ratio

As this is the service oriented company and it had no need to maintain inventory
for itself so this ratio had no significance for nib
Financial LEVERAGE RATIO
Debt ratio= total liabilities/total assets
Years
Ratio
2008
.79
09
.80
010
.92
011
.91
012
.93
013
.92
014
.92
Debt Ratio
0.95
0.9
0.85
0.8
0.75
0.7
2008
2009
2010
2011
2012
2013
2014
Debt Ratio
Debt to equity ratio=total debt/total equity

years
2008
3.33
09
3.91
010
10.38
011
10.00
012
12.23
013
10.80
014
10.99
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Debt to equity ratio

14
12
10
8
6
4
2
0
2008
2009
2010
2011
2012
2013
2014
Debt to equity ratio
d. Gross profit margins=sale-CGS/sale

Return on asset=net income/total assets
Return on equity=net income/shareholders equity
RETURN ON ASSET:
years
2010
0.06
2011
0.01
2012
0.0002
2013
0.002
2014
0.006
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return on assets
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2010
2011
2012
2013
2014
return on assets
RETURN ON equity :
years
2010
2011
2012
2013
2014
1.3
0.1
0.2
0.8
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reurn on equity
2.5
1.5
0.5
2010
2011
2012
2013
2014
reurn on equity
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CHAPTER # 7
SWOT ANALYSIS:
It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect organization.
Strengths:
Flexible working hours.

A lenient communications between lower and top management .
Customers are treated in a good and respectOrespectable manner
There is good security management at the branch
The building is quite attractive and environment is friendly for working
The water and cooling system is properly set.
For serving customers and employees tea boys are always available
24/7 availability of service of ATMs
The customers privacy is concerned
Location of branch is at commercial level.
Well behaved, well qualified, sincere and friendly staff.
Group of bankers well trained and experienced

Intranet facility.
Good organizational structure.
Effective inter-branch communication network

Management through team work.
Good reputation and image in the market

Highly professional staff.
Highly professional atmosphere.
Friendly environment within the branch that leads to good commitment.
Safety facility through good security system for lockers.
Locker facility for the customers in the branch
High power electricity generators are available for electricity break down
Dining room for tea breaks and lunch breaks
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Weaknesses:
Sometimes employees are over burdened

Operations department sometimes exceeds its working hours because of work burden
The token system sometimes stop it working
Employees turnover is high
The audit of the branch failed in FY2014 due to not fulfilling required portfolio
The branch was well renovated but there were some difficulty in handling customers
specially by BCOT team
Sometimes number of customers is high and little space for their accommodation
The improper working of scanner and photocopy machine, which make situation
annoying and awkward when on urgent basis
The long account opening process as first the documents are sent to Karachi through
courier service for further processing, this makes customers less patient.
No proper drawers for keepings, and important drawers of employees
Lack of car parking facility

Lack of female staff
Opportunities:
Recent renovation of branch is according to new environment, it attracts more customers
The branch is equipped with user friendly technology
Training tenure of employees for customer handling
All available information is displayed for customers on Touch Pads, an advance
technology
Highly skilled and trained staff
Online and internet banking.
THREATS:
The branch is located in the area where other banks are also opened and this can divert
the customers
The level of competition is high with other branches NIB which will be continues in
future too and this need continues innovation and its operations
Govt. new and changing regulations
Rapid changes in technology
Political instability in the region
Demographic changes
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SECTION IV
CHAPTER# 8
RECOMMENDATIONS:
From the above SWOT analysis and during my internship at NIB Bank Ltd I observed some
areas that need attention for the management like:
Working facilities should be improved and need to be up-to-date regularly.

Modern and new technology should be adopted for improving and enhancing the banking
services.
To reduce the turnover of employees, Promotions should be given to the employees to

keep them motivated and to keep them loyal to the bank.
The branches of the NIB should be expended in Lahore and I am sure through this the
NIB would be able to increase its customers and deposits
The employees of the branch must be educated, skilled, trained, and must be known
about Market shares. They should fix the market shares for every year.
There should be more female staff in the branch
There should be the proper floor timings by BCOT team to serve the customers
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There should be proper and up-to-date technology in the branch
There should be proper training program and improvement processes to keep the staff
well equipped and up-to-date about new technology and equipment
There should be efficient customer service staff, phone banking department, because they
are front end for having satisfied customers
The staff and employees should be well mannered and well dressed
Employees are required to change their behavior while serving customer because in
customer care services you need to have calm attitude.
In operation department there is lack of manpower and because of this the employees
faces difficulties so the manpower should be increased
The work should be distributed equally because some of the employees are overburdened
and some departments are over staffed
The branch should implements serious management policies
The strong marketing strategies should be adopted by the branch to aware their customers
about their products and services
Assessment of the employees should be through proper criteria for their promotion
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Management should work on information technology because most of the time online
transaction of the branch network is down
CONCLUSION:
The time spent for the internship at NIB Bank Limited were no doubt a source of great
learning for me about many things particularly working of different departments in bank.
This practical internship do help me attain loads of knowledge about the predominant
functions performed by banking companies, but also impart a lot of training as regards the set
of behavioral traits which distinguish a particular person from the rest of the lot in a
professional environment.
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REFERENCES:
http://nibpk.com
http://www.wikiwealth.com/swot
http://nibpk.com/about-us/#!/about-us/?page_id=6
Account opening forms
Deposit Manuals
Practice of Law of Banking in Pakistan by Mr. IsrarSiddiqui.
Annual reports
Visited the branch
http://commerceplus.blogspot.com/2010/07/project-report-on-nib-bank.html
Van Horne, James C. and Wachowicz, JR., John M., (1998). Fundamentals
of Financial Management. Tenth Edition. USA: Prentice-Hall, Inc.
Weihrich, Heinz. And Koontz, Harold (1994). Management 10th Edition.
New York: McGraw-Hill Inc.
http://www.scribd.com/doc/38046341/Atif-s-NIB-Internship-Report
Muhammad Khalid (2012). Internship Report on Muslim Commercial bank
Limited,VirtualUniversityofPakistan
An Internship Report on UBL, byGhulamMustafa , 2013-2015, Department
of Business Administration, Preston University Kohat.
An Internship Report on ABL, by IzranUllah, 2004-2005, Department of
Business Administration, Preston University Kohat.
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1 | Page

1.2: PURPOSE OF STUDY:

1.3: SCOPE OF THE WORK:

1.4: METHODOLOGY OF RESEARCH:

1.4.1: Primary Data:

1.5: Scheme of Report:

2.1.2: Origin of Banking:

2.1.3: Modern Definition of Bank:

2.2 History of Banking in Pakistan

2.1.4: Types of Banks:

been placed in various categories:

commerce and industry.

2.1.5: Development of Banking in Pakistan:

The Agriculture Development Bank of Pakistan (ADBP) was set up in 1961.

The Nationalized banks due to many weaknesses such as overstaffing, deteriorations in

2.1.6: Commercial Banking in Pakistan:

2.2: NIB BANK LIMITED HISTORY:

2.3: VISION OF NIB:

2.7: Products of NIB:

The most powerful current account

2.8: Future prospect of NIB:

2.9: Features of NIB: the features of NIB are:

2.9.2: Online Banking:

2.10: Sources of Funds:

2.11: Company Information:

Francis Andrew Rozario

Tan Soo Nan

Willie Wai Kong Chan

Director / President & Chief Executive

Chief Financial Officer

INTERNSHIP REPORT NIB

M. YousufAdilSaleem& Co. Chartered Accountants

2.12: ORGANIZATIONAL STRUCTURE:

INTERNSHIP REPORT NIB

Senior Officer Accounts & Admin

TellerOfficer Account Opening Cheque Books & ATM Cards

INTERNSHIP REPORT NIB

2.12.2: Organizational structure of NIB:

requirements. There are 19 employees in the branch.

Area distributor manager

INTERNSHIP REPORT NIB

3.1: Types of accounts and services offered by the branch:

The most powerful current account

3.2: Departments in the branch:

4.1.1: Credit Division:

4.1.2: Electronic Technology:

4.1.3: System and Operation Division:

4.1.4: Asset Products Division:

4.1.5: Investments Products Division:

4.1.6: International Division:

INTERNSHIP REPORT NIB

4.1.8: Corporate and Merchant Banking Division:

4.1.9: Credit Card Division:

4.1.10: Planning and Corporate Affairs Division:

4.1.11: Human Resource Division:

4.1.12: Internal Audit Division:

4.1.13: Finance Division:

4.2: GEOGRAPHICAL DEPARTMENTATION:

NIB have 69 branches in Sindh

4.3: DEPARTMENTS OF NIB 83E/1 MAIN BOULEVARD GULBERG III

INTERNSHIP REPORT NIB

List of types of Accounts offered by: