1. MBA (Finance)

2. Internship Report National Bank of Pakistan

3. Brief Introduction of the Organization Overview of business
1949
Start work at micro level
Single largest public bank
Role play in the development of economy

4. Business volume I observed all the financial indicators are in growing trend
Items
2007
2008
2009
Total assets
762194
817758
944233
Deposits
591907
726,465
Advance-net
340,319
475,243
Investment-net
211,146
217,643
Shareholder’s equity
69,271
81.367
94,792
Pre tax profit
28,061
23,001
22,300

5. Competitors of National Bank of Pakistan
All Commercial banks like (, HBL MCB , ABL etc.)
Islamic banks like (Meezan Bank, Bank Islami, etc)

6. Organizational Hierarchy Chart
President .
SEVP RM BM

7. Training Program .
I have got training in major 3 departments during my internship .
Account opening department
Remittance department
Clearing department

8. Account opening department
I had worked in this department 2 weeks
I opened the current account, PLS account
I have filled the KYC and also posted the confirmation letter to customers.

9. Remittance department
I had worked in this department 2 weeks
I have learned the procedure theoretically of Pay Order, Demand Draft,etc.
I also fill the Pay Order and Demand Draft slips
It was my duty to issue the cheque books.

10. Clearing department I had worked in this department 2 weeks
It was my duty to enter all the in-ward clearing cheques in-word “clearing register.”
It was also include in my duties to enter all the out-ward clearing cheques in-out word “clearing register.”

11. Structure of Finance Department
President
Hierarchy of NBP of Finance Department
SVP Finance
GM Finance

12. Structure of Finance Department
Finance & accounting operations
Almost 1000 employees are working and handle lots of assignments.
Preparation of budget
Investment decision
Budget allocation
Assets and liability management
Handling the accounting matters

13. Function of Finance Department
Accounting system of Organization
NBP use the “double entry system”
NBP use “BBO” and “EBS “software to generate the electronic data
NBP raise funds from different sources like deposit, borrowing from other institution and equity
NBP allocate the source of funds in loan, reserves, investment,

14. National Banks of Pakistan
Ratio Analysis
Ratio Analysis
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Current Ratio
646,338,217 / 588,363,674
=1.098
690,313,112 / 635,158,077
= 1.086
1,059,935,515 / 737,085,994
= 1.438
Current Ratio is showing Mixed trend

15. National Banks of Pakistan
Ratio Analysis
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Working Capital
646,338, ,363,674
=57,974,543
690,313, ,158,077
= 55,155,035
1,059,935, ,085,994
= 322,849,521
Working Capital is showing Mixed trend

16. National Banks of Pakistan
Ratio Analysis
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Sales to working capital /
=87.22
/ 55,155,035
= 110.5
/ 322,849,521 = 24.14
Working Capital is showing Mixed trend

17. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Debt to equity ratio
1,235,301,130 / 69,270,631
=17.832 /
= 13.90
1,607,040,516 / 94,791,919 =
It is showing Mixed trend

18. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Debt to total assets
1,235,301,130 / 762,193,593
= 1.620 /
= 1.700
1,607,040,516 / 944,232,762
= 1.701
Debt to total assets trend is increasing

19. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Fixed asset to equity ratio
25,922,979 / 8,154, = 21.03
24,217,655 /81,367, = 23.6
25,147,192 / 94,791, = 22.2
Fixed asset to equity ratio has mixed trend

20. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Net profit margin
19,033,773 /50,569,481 *100
= %
= 15,458,590 / 60,942,798 *100
= %
= 18,211,846 / 77,947,697 *100
= %
It is showing decreasing

21. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Return on asset:
= 19,033,773 / ,593 *100
= %
= 15,458,590 / 817,758,326 *100
= %
= 18,211,846 / 944,232,762 *100
= %
It is showing Mixed Trend

22. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Return on Equities
= 19,033,773 / 69,270,631 *100
= %
= 15,458,590 / 81,367,002 *100
= %
= 18,211,846 / 94,791,919 *100
= %
It is showing Mixed Trend

23. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Total Asset turn over ratio
= 50,569,481 / 762,193,593
= Times
= 60,942,798 / 817,758,326
= Times
= 77,947,697 / 944,
= Times
It is showing Increasing Trend

24. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Fixed asset turn over:
= 50,569,481 / 25,922,979
= Times
= 60,940,798 / 24,217,655
= Times
= 77,947,697 / 25,147,192
= Times
It is showing increasing trend

25. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Earning per Share
= 19,033,773 / 8,154,319
= per share
= 15,458,590 / 81,367,002
= per share
= 18,211,846 / 94,791,919
=16.92 per share
It is showing Increasing Trend

26. National Banks of Pakistan
Ratio Analysis
National Banks of Pakistan
Year 2007
Year 2008
Year 2009
Cash Flow Ratios
= 78,804,419 /1,235,301,130 * = %
= 2,532,681 / 1,390,916,111 *100
==0.182 %
= 45,451,673 / 1,607,040,516 *100
= %
It is showing Mixed Trend

27. Horizontal analysis NBP Balance Sheet Horizontal Analysis for 3 years
2007%
2008 %
2009 %
Assets
Cash and balances with treasury bank
100
Balances with other bank
Lending to finance department
Investment
Advances
Operation fix assets
Differed assets
Other assets
Total Assets

28. Horizontal analysis NBP Balance Sheet Horizontal Analysis for 3 years
Liabilities  %
Bills payable
100
Brewing
Deposits and other accounts
sub ordinate loans
Liabilities against Assets subject to Finance
Differed tax Liabilities
other Liabilities
Total Liabilities
Net Assets
Share Capital
110
132
Reserves
Unappropriated Profited
Surplus on Revaluation of assets
#VALUE!
Net Capital
Owner Equity+ Liabilities

29. Horizontal Analysis NBP Income Statement Horizontal Analysis for 3 years%
2007%
2008
2009
Marks ,returns, interest earned
100
Markup, return, interest expense
Net markup
Provision against non performing advances
Provision against of balance sheet obligations
Provision against
Bad debts written off directly
Net mark up
Non Mark up ,interest income
Fee, commission and brokage income
Dividend income
Income from dealing in foreign currencies
Gain of sale and redemption of Security
Unrealized gain
Other Income
Total Non Markup

30. Horizontal Analysis NBP Income Statement Horizontal Analysis for 3 years
NON Mark Up / Interest Expenses
Administrative Expense
100
Other Provision
Other Charges
Total Non Mark Up/Interest Expenses
Extra ordinary/Unusual Item
Profit Before Taxation
Taxation- Current
Prior Period
Deferred
Profit After Taxation

31. Vertical analysis for 3 years1 Balance Sheet
Items
Change%
2009
2008
Assets
Cash and balances with treasury banks
12.266
115,827,868
13.023
106,503,756
12.447
94,873,249
Balances with other banks
3.008
28,405,564
4.688
38,344,608
4.916
37,472,832
Lending to financial institutions
2.074
19,587,176
2.094
17,128,032
2.816
21,464,600
Investments - net
23.049
217,642,822
20.889
170,822,491
27.702
211,146,038
Advances - net
50.331
475,243,431
50.502
412,986,865
44.649
340,318,930
Operating fixed assets
3.663
25,147,192
2.961
24,217,655
3.401
25,922,979
Deferred tax assets
0.324
3,062,271
0.391
3,204,572
4.066
30,994,965
Others assets - net
6.281
59,316,438
5.447
44,550,347
Total Assets
100%
944,232,762
817,758,326
762,193,593

32. Vertical analysis for 3 years Balance Sheet2
items
Change%
2009
2008
Libilities
Bills payable
1.124
10,621,169
1.249
10,219,061
0.926
7,061,902
Borrowings
4.795
45,278,138
4.947
40,458,926
1.418
10,815,176
Deposits and other accounts
76.937
726,464,825
76.420
624,939,016
77.658
591,907,435
Sub ordinated loan
Liabilities against assets subject to finance lease
4.514
42,629 1
3.090
25,274
4.402
33,554
Deferred tax liabilities - net
0.668
5,097,831
Other liabilities
4.476
42,269,623
4.849
39656,831
4.059
30,940,041
T. Liabilities
87.338
824,676,384
87.470
715,299,108
84.736
645,855,939
Total Assets
119,556,378
102,459,218
116,337,654

33. Vertical Analysis NBP Income Statement Vertical Analysis for 3 years
Share capital
1.139
10,763,702
1.096
8,969,751
1.069
8,154,319
Reserves
2.402
22,681,707
2.438
19,941,047
2.069
15,772,124
Unappropriated profit
6.496
61,346,510
6.414
52,456,204
5.949
45,344,188
Total Equity
10.039
94,791,919
9.950
81,367,002
9.088
69,270,631
Surplus on revaluation of assets - net of tax
2.622
24,764,459
2.579
21,092,216
6.175
47,067,023
Total Liabilities & Equity
100 %
944,232,762
100%
817,758,326
762,193,593

34. Vertical Analysis NBP Income Statement Vertical Analysis for 3 years
NON Mark Up / Interest Expenses
Administrative Expense
Other Provision
620780
747521
168027
Other Charges
321647
583661
17144
Total Non Mark Up/Interest Expenses
Extra ordinary/Unusual Item
Profit Before Taxation
Taxation- Current
Prior Period
391497
Deferred
323731
Profit After Taxation
Unappropriated Profit
Transfer from Surplus on revaluation
123934
130456
39007
Profit Available for appropriate

35. Industry Analysis 1. Earning Per Share Earning Per Share 2009 Rs
Bank Alfalah
0.24
0.38
1.04
Meezan Bank
0.98
0.82
1.70
Allied Bank
1.7
1.12
1.27
National Bank of Pakistan
16.92
14.36
21.22

36. Industry Analysis 2.Net Profit Margin Net Profit Margin 2009 % 2008 %
2007 %
Bank Alfalah
2.86
5.8
17.59
Meezan Bank
8.76
8.27
16.27
Allied Bank
50.30
40.47
48.14
National Bank of Pakistan
23.36
25.36
37.63

37. Industry Analysis 3. Return on Assets Return on Assets 2009 2008 2007
Bank Alfalah
0.24
0.38
1.04
Meezan Bank
0.98
0.82
1.70
Allied Bank
1.7
1.12
1.27
National Bank of Pakistan
1.93
1.89
2.49

38. Industry Analysis 4.Return on Equity Return on Equity 2009 % 2008 %
2007 %
Bank Alfalah
5.22
9.17
25.72
Meezan Bank
13.29
10.30
3.39
Allied Bank
23.89
18.41
2.05
National Bank of Pakistan
19.22
18.99
27.48

39. Industry Analysis 5.Debt to Equity Debt to Equity 2009 2008 2007
Bank Alfalah
0.06
0.05
0.052
Meezan Bank
12.5
13.27
10.77
Allied Bank
12.98
15.48
15.11
National Bank of Pakistan
16.95
13.90
17.83

40. Industry Analysis 6.Debt to Total Assets Debt to Total Assets 2009
2008
2007
Bank Alfalah
94.3%
95.1%
95.06%
Meezan Bank
92.60%
92.99%
91.50%
Allied Bank
92.85%
93.93%
93.79%
National Bank of Pakistan
1.70%
1.62%

41. Industry Analysis 7.Assets Turn over Ratio Assets Turn over Ratio 2009
2008
2007
Bank Alfalah
0.176
0.019
0.021
Meezan Bank
0.081
0.080
0.068
Allied Bank
0.033
0.027
0.026
National Bank of Pakistan
0.082
0.074
0.066

42. Industry Analysis 8.Gross profit margin Gross profit margin 2009 %
2008 %
2007 %
Bank Alfalah
30.67 %
3.32 %
35.54 %
Meezan Bank
50.80 %
54.61%
46.39%
Allied Bank
45.51%
43.58%
52.74%
National Bank of Pakistan
66.50%
60.80%
49.34%

43. Future prospectus of NBP
NBP higher management has set the future goal that NBP will issue the GDR to raise source of finance.
Increasing trend in NBP assets, profits. liability which will make more strong financial health of the NBP.
The bank will also participate in the multinational projects which NBP can make more profit.
NBP will also introduce the more social schemes with the co-ordination of Govt which will enhance more market value of the bank.
More future growth will be expected in NBP source of fund ,investment and assets because all the financial indicators of NBP are in positive direction.
Policies, strategy has revised according to desire of modern consumer demand.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company's health.

44. SWOT Analysis of the Organization
Government Bank
Strong liquidity position of the bank due to large portfolio of deposit.
A variety and multiple source of fund like Govt accounts , Govt institutional account etc.
Good market repute and better rating.
All financial indicators of NBP are in positive increasing trend.
Qualified and experienced stall is major strength
Sound financial policies
Successful history
All kinds of government payments done by NBP.

45. Weakness
Finance depart provide financing to Govt at very cheaper rate.
Provide lending to political persons due to this it increase non performing loans of NBP.
Working Environment is so complex
Information system of NBP is so poor condition. In this modern age NBP 80% is taking manual basis.
Product delivery process is so complex and lengthy.
Poor relationship with customers.
Poor marketing strategy
Delay in investment decisions due to government bank.
More load of work due to shortage of employees.
These are only few weaknesses mansion. If National Bank of Pakistan will over come all it. NBP can become the leader of market.

46. Opportunity
NBP has open many opportunities for its growth. NBP current management has boarder vision. They have taken steps to improve customer services to achieve objectives.
NBP has opportunity to Expand the Islamic banking.
NBP has a Opportunities to open new branches in the foreign countries
Opportunity can raise the finance through the issuance of the bounds
These actions taken by current management provide a great opportunity for NBP for making it future prosper and can make NBP not less than any modern commercialize bank in Pakistan.

47. Threats Attentive competition in the banking sector
Law and order situation in the country.
Thereat from Govt regularity body and policy.
In NBP facing the market risk due to the political and economical situation in the country.
Threats from NBP employ union and association.

48. Conclusion
I have reached conclusion on the basis of SWOT and critical analysis.
NBP is a public leading bank. it provides all types of product and services to all class of the society. Bank has some strength liquidity poison, large portfolio of deposits etc which differentiate the NBP from other competitors
The bank is not well managing the counter rush and take late financial decisions. It is damaging the market value of NBP. If high management of NBP curtails all type of weakness and overcomes challenges. It will become again leader in the banking industry.

49. Recommendations
I have suggests the few advises to high management of NBP on the basis of critical and SWOT analysis
NBP high management should introduce policy. In which loans not given to the political persons.
High Management should make decision to open the new branches in the foreign countries which will enhances the source of fund and profit of the bank
High management should review credit policy it should be flexible to the needy person.
High management should be introduced more innovative schemes which will enhance the more market value of NBP.
The NBP high management should investment funds in the power supply projects.
NBP high management should rapidly introduce E-banking system in NBP.

50. Thank You

51. Vertical analysis for 3 years Balance Sheet
Items
Change%
2009
2008
Assets
Cash and balances with treasury banks
12.266
115,827,868
13.023
106,503,756
12.447
94,873,249
Balances with other banks
3.008
28,405,564
4.688
38,344,608
4.916
37,472,832
Lending to financial institutions
2.074
19,587,176
2.094
17,128,032
2.816
21,464,600
Investments - net
23.049
217,642,822
20.889
170,822,491
27.702
211,146,038
Advances - net
50.331
475,243,431
50.502
412,986,865
44.649
340,318,930
Operating fixed assets
3.663
25,147,192
2.961
24,217,655
3.401
25,922,979
Deferred tax assets
0.324
3,062,271
0.391
3,204,572
4.066
30,994,965
Others assets - net
6.281
59,316,438
5.447
44,550,347
Total Assets
100%
944,232,762
817,758,326
762,193,593

52. Vertical analysis for 3 years Balance Sheet
items
Change%
2009
2008
Libilities
Bills payable
1.124
10,621,169
1.249
10,219,061
0.926
7,061,902
Borrowings
4.795
45,278,138
4.947
40,458,926
1.418
10,815,176
Deposits and other accounts
76.937
726,464,825
76.420
624,939,016
77.658
591,907,435
Sub ordinated loan
Liabilities against assets subject to finance lease
4.514
42,629 1
3.090
25,274
4.402
33,554
Deferred tax liabilities - net
0.668
5,097,831
Other liabilities
4.476
42,269,623
4.849
39656,831
4.059
30,940,041
T. Liabilities
87.338
824,676,384
87.470
715,299,108
84.736
645,855,939
Total Assets
119,556,378
102,459,218
116,337,654

53. Vertical analysis for 3 years Balance Sheet
Share capital
1.139
10,763,702
1.096
8,969,751
1.069
8,154,319
Reserves
2.402
22,681,707
2.438
19,941,047
2.069
15,772,124
Unappropriated profit
6.496
61,346,510
6.414
52,456,204
5.949
45,344,188
Total Equity
10.039
94,791,919
9.950
81,367,002
9.088
69,270,631
Surplus on revaluation of assets - net of tax
2.622
24,764,459
2.579
21,092,216
6.175
47,067,023
Total Liabilities & Equity
100 %
944,232,762
100%
817,758,326
762,193,593

54. provision for diminution in the value of investments 0.776 605,629
items
Change%
2009
2008
2007
Mark-up /return / interest earned
100%
77,947,697
60,942,798
50,569,481
Mark-up /return / interest expensed
50.661
39,489,649
39.192
23,884,768
33.498
16,940,011
- Net mark-up/Interest income
49.338
38,458,048
60.807
37,058,030
66.501
33,629,470
Provision against non-performing advances
14.167
11,043,469
17.382
10,593,565
9.339
4,723,084
provision for diminution in the value of investments
0.776
605,629
0.612
373,249
(.0795)
(40,248)
Inappropriate profit B/F
67.296
52,456,204
74.404
45,344,188
63.426
32,074,677
Transfer from surplus on revolution of fixed assets on account of incremental depreciation
0.158
123,934
0.214
130,456
0.077
39,007
Profit available for appropriation
90.819
70,791,984
99.984
60,933,234
101.14
51,147,457

55. Vertical Analysis NBP Income Statement(1/3) Vertical Analysis for 3 years
items
Change%
2009
2008
Non Mark-up/Interest Income
Fee, commission and brokerage income
11.456
8,930,391
13.004
7,925,370
13.410
6,781,683
Dividend income
2.463
1,920,336
4.723
2,878,932
6.452
3,263,246
Income from dealing in foreign currencies
3.884
3,028,165
6.512
3,969,057
2.062
1,042,827
Gain on sale of securities - net
5.890
4,591,894
0.648
395,427
4.630
2,341,690
Unrealized loss on revaluation of investment classified as held for trading
3.021
2,355
2.800
1,707
0.063
31,964)
Other income - net directly
0.708
552,216
2.043
1,245,369
0.291
147,363
Total non mark up / interest income
24.407
19,025,357
2.694
16,41,862
26.784
13,544,845
45,814,070
69.742
42,503,078
83.947
42,451,580

56. NBP Income Statement(2/3) Vertical Analysis for 3 years
items
Change%
2009
2008
2007
Non Mark-up/Interest Expenses
Administrative expenses
28.957
22,571,470
29.816
18,171,198
28.091
14,205,911
other provision/write offs
0.796
620,780
1.226
747,521
0.332
168,027
Other charges
0.412
321,647
0.957
583,361
0.033
17,141
Total non mark up / interest expenses
30.166
23,513,897
32.000
19,502,080
28.458
Profit before taxation
28.609
22,300,173
37.741
23,000,998
55.489
28,060,501

57. NBP Income Statement(3/3) Vertical Analysis for 3 years
items
Change%
2009
2008
2007
Taxation - Current
11.83
9,221,513
19.301
11,762,650
16.435
8,311,500
Prior years
-5.302
(4,133,282)
0.774
391,497
- Deferred
1.282
(999,904)
-6.92
(4,220,242)
0.640
323,731
5.244
4,088,327
123.95
75,542,408
Profit after Taxation
23.364
18,211,846
25.365
15,458,590
37.638
19,033,773
Inappropriate profit B/F
67.296
52,456,204
74.404
45,344,188
63.426
32,074,677
Transfer from surplus on revolution of fixed assets on account of incremental depreciation
0.158
123,934
0.214
130,456
0.077
39,007
Profit available for appropriation
90.819
70,791,984
99.984
60,933,234
101.14
51,147,457