Deposits in the NIDA accepted on the condition that the depositor shall always maintain a minimum balance as prescribed by the bank in his account. In the event however, that any depositor wishes to withdraw the amount and the balance in his account is less than the required amount, the account will be converted to the ordinary PLS SB account for the purpose of calculating profit.
An example of how the NIDA accounts are maintained is shown on the next page. On Deposits of Rs. It has different product items which are home purchase, home construction, home renovation and purchase of land plus construction. If anyone has a Home Finance Facility outstanding with another bank he can have it transferred to NBP through a hassle-free process.
NBP Advance Salary, the leading personal loan product of the country, is maintaining its inimitability ever since it was launched. This was only possible due to its swift growth and remarkable loan disbursement of over billion. Its hassle free acquisition with no prior formalities and easy availability in a short turn around time is attributed as the most distinguishing features of the product. The product is offered countrywide. The terms and conditions of NBP Advance salary is shown on next page:.
Eligibility Permanent Employees of Govt. Hypothecation of Consumer durables owned by the borrower. Three 3 Undated Cheques Max. This product has following features Under the Scheme, financial assistance is provided by way of Interest Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan.
The Scheme is being administered by a high powered committee comprising Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks and representative of Ministry of Finance, Government of Pakistan.
These will not only provide employment opportunities to ever-growing population demand but will also become the catalyst for breaking the vicious circle of poverty. However, the cost of life and disability insurance will be borne by GOP. This is available to all eligible citizens of Pakistan for setting-up small-scale Retail Outlet or Mobile Utility Store.
The USC will give its franchise to qualifying Pakistani citizens. Following two financing options are available under this product:. However, stocks will be purchased by the customer. Under this product the average loan size of Rs. Under this product average loan size of Rs. The average amount of financing under this product will be Rs. In cash finance, a borrower is allowed to borrow money from the banker up to a certain limit, either at once or as and when required.
If the borrower does not utilize the full limit, the banker has to lose return on the un-utilized amount. When a borrower requires temporary accommodation his banker allows withdrawals on his account in excess of the balance which the borrowing customer has in credit, and an overdraft thus occurs.
This accommodation is generally allowed against collateral securities. The borrowing customer is in an advantageous position in an overdraft, because he has to pay service charges only on the balance outstanding against him.
The main difference between a cash finance and overdraft lies in the fact that cash finance is a bank finance used for long term by commercial and industrial concern on regular basis, while an overdraft is a temporary accommodation occasionally resorted to. Thus the borrower gets a fixed amount of money for his use, while the banker feels satisfied in lending money in fixed amounts for definite short periods against a satisfactory security.
Section A reads:. However, if a demand draft drawn on a bank by its own branch bears a forged endorsement, the person in possession of it cannot compel that bank to pay it. When a person requires a draft he should be asked to complete the prescribed application form in which he should state the amount of the draft, the name of the payee, and the place of payment. This application form should be signed by the purchaser or by those persons who have been duly authorized to act on his behalf.
The National Bank of Pakistan provides demand drafts at very reasonable rates with safety, speedy and reliable way to transfer money. Any person whether an account holder of the bank or not, can purchase a Demand Draft form a bank.
Before issuing, the bankers receive an amount equal to the face value of the cheques, and also charge a small commission. Foreign currency travelers cheques are issued and encashed in accordance with the provisions of the Exchange Control Regulation Act, While making payment, the paying banker must insist that the holder signs in his presence.
It has following features. Letter of credit state the limit of the credit and the time during which it is held at the disposal of the grantee, but they are neither negotiable nor transferable. Letter of credit may be revocable. There are many kinds of letter of credit such as Revolving credit, Back to Back credit, Claused credit etc. With competitive rates, security, and ease of transaction, NBP Letters of Credit are the best way to do your business transactions.
The system has built-in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of home remittances. Using the NBP network of branches, we can safely and speedily transfer money for our business and personal needs.
And NBP also offer the most competitive rates in the market. When the money is not required immediately, the remittances can also be made by mail transfer MT.
Here the selling office of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. NBP taxes mail charges from the applicant where no excise duty is charged.
Postage charges on mail transfer are actual minimum Rs. The fundamental principles of such transfer are otherwise identical with the Mail Transfer. It is the message, which is sent from one branch to another on the order of payer to payee through wire. As such remitting office is not required to issue any instrument payment to the remitter for delivery to the beneficiary.
NBP pay orders are a secure and easy way to move your money from one place to another. And, as usual, NBP charges for this service are extremely competitive. The charges of NBP are very low all over the Pakistan.
The lockers issued only to the depositors. No lockers are issued to any unknown person. The dual control system is used for lockers.
The officer has master key to apply on the locker but he cannot open the locker of any person. The locker holder provides the bank has specimen signature.
Whenever the locker holders come to open the locker, his signatures are verified by the officer and then will be able to open his locker. If the key of the locker is lost company providing these lockers breaks the locker and new lock is fitted in its locker and lock is destroyed in the presence of the locker holder and bank charges RS for that. In case the locker holder dies, the court opens his locker in the presence of his heir as mentioned in his will or and his belongings are given to them and the locker is closed.
The transaction is authorized and processed by entering PIN. The followings are the main features of this product:. The role of the Financial Institution Wing is It provides the basic framework within which functions and procedures are performed.
Any organization needs a structure, which provides a framework for successful operations. The operation of an organization involves a number of activities, which are related to decision making, and communication of these decisions. These activities must be well coordinated so that the goals of the organization are achieved successfully. The bank has clearly defined organizational structure, which supports clear lines of communications and reporting relationships.
There exists a properly defined financial and administrative power of various committees and key management personnel, which supports delegations of authority and accountability. The internal operations of the Bank are organized into 15 main departments and divisions headed by senior management of the bank and are report directly to the Board of Directors.
The organizational structure of National Bank of Pakistan is centralized because all the decisions of the bank are taken by the top Management. The Federal Government may, if deems necessary, appoint a Chairman of the Board in respect of the Bank. The responsibilities of Directors include the followings 1. The Board of Directors shall assume its role independent of the influence of the Management and should know its responsibilities and powers in clear terms.
The Board shall clearly define the authorities and key responsibilities of both the Directors and the Senior Management without delegating its policy-making powers to the Management and shall ensure that the Management is in the hands of qualified personnel.
The Board shall also be responsible to review and update policies periodically and whenever circumstances justify. As regards Internal Audit or Internal Control, a separate department shall be created which shall be manned preferably by professionals responsible to conduct audit of the Bank, Various Divisions, Offices, and Units Branches etc.
The business conditions and markets are ever changing and so are their requirements. The Board should meet frequently preferably on monthly basis, but in any event, not less than once every quarter and the individual directors of an institution should attend at least half of the meetings held in a financial year. The Board should ensure that it receives sufficient information from Management on the agenda items well in advance of each meeting to enable it to effectively participate in and contribute to each meeting.
To share the load of activities, the Board may form specialized committees with well- defined objectives, authorities and tenure. These committees should apprise the Board of their activities and achievements on regular basis. The Board should ensure that it receives management letter from the external auditors without delay. It should also be ensured that appropriate action is taken in consultation with the Audit Committee of the Board to deal with control or other weaknesses identified in the management letter.
A copy of that letter should be submitted to the State Bank of Pakistan so that it can monitor follow-up actions. Ibrar A.
Mumtaz Director Mr. Tariq Kirmani Director Mr. Muhammad Arshad Chaudhry Director Mr. Ekhlaq Secretary Board of Ahmed Directors. The whole functions of National Bank of Pakistan are performed under these Groups. The National Bank of Pakistan has following groups and divisions:. Asif A. Masood Karim Shaikh. The Corporate Banking Group achieved excellent results in with a number of landmark transactions in cement, energy, communication and fertilizer sectors.
In addition to the funded income, our corporate and investment banking has substantially increased its fee base income this year by being the lead advisor in a number of transactions in the corporate world of Pakistan. The challenges to corporate business in year were manifold including reduction in Private Credit Investment as a result of slowing down of economy as well as rising interest rates.
In addition the bank's corporate loans yields also faced pressure as substitute form of funding sources are available in the market in form of Islamic financing, mutual funds, issuance of debt instruments like TFCs and Bonds and the Capital markets. Despite these threats and challenges at NBP, our corporate team not only increased the volume as well as the yield of the loans they also maintained a strong franchise with the leading Pakistani corporate so as to ensure that NBP not only maintains its market share but is in a position to meet any challenges in future.
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No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. No notes for slide. National bank is owned by the government and act as an agent of the State bank of Pakistan. It has its national and international level branches i. Investment And Portfolio Management Book. Powered by Blogger. Remitters in USA can log on to our user friendly website, www. The service is fully secure with advance encryption application and is available for use 24 hours a day, 7 days a Week.
Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well. The whole process takes a few minutes. While funds are credited directly to beneficiaries maintaining accounts with NBP, a pay order or demand draft is couriered to other banks for their customers. Coverage of Rs. Accidental Death Death due to accidental injuries, but not illness. It distributes the workload and increases efficiency and effectiveness.
Departmentation can be done on various bases for example, Departmentation for customers, by function or by location. National bank of Pakistan, Main Branch Jaranwala consists of various departments based on its different functions. So it can be said that the basis for Departmentation at NBP is purely functional. Cash Department 2. Deposits Department. Remittances Department.
Clearance Department 6. Collection Department 4. Cash Receipts 2. Token Department 3. Cash Payments 1. He recorded the cash received with a pay in slip and other documents it necessary and recorded it in the cash receipt register. There were two separate types of pay-in-slips, which were used for depositing cash, checks, and drafts. There were prescribed forms in which the information was fed. After filling the pay-in-slip with the amount, the cash and slip 50 A part of this slip is given to the customer for his record and other was maintained with the bank.
They presented the checks to the person at the section. He checked that whether the check belonged to the same bank, the amount in words and figures were same, check was not outdated and the signature was there etc. The customer bearing that token number arrived at the counter. The cashier checked out the number and paid the amount as per checks and entered number and amount in the cashbook maintained with him. The Negotiable Instruments. Since a Cheque has been declared to be a bill of exchange, it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act, Law of Banking by Dr.
Hart, p. The Requisites of Cheque Define cheque 51 Payments of cheque 1. Receiving of Cheques The cash is paid against the cheques of the client.
The following points are important. Cheque is drawn on same branch Cheque is not post dated. Amount in words and figure are same. It should be bearer cheques so the word bearer should not cross.
Verification of signature. After receiving the cheques the cheques the operation manager verify the signature of the account holder and the signature on the cheques. If the signature is not same it is returned back otherwise forward to BBO Operator for posting.
Token assign. Internship Report on Muslim Commercial Bank July 12th, 7 Comments. August 23rd, 6 Comments. Toggle Sliding Bar Area. In this report, I mention in which departments I worked and got practical experience. The internship is the great tools for gaining practical and professional knowledge.
The virtual university has given me a task to a done internship in any company. Hence for the fulfillment of this university requirement, I have selected National bank of Pakistan. It is great bank supported by the Government. I worked in a said bank, only 7 weeks in a different department.
During my stay in the department, I leaned a lot of activities performed by this department. Now it is time is to write a report on the national bank of Pakistan importantly its banking procedure. You will be able to study the national bank History, its product lines, its competitors briefly in the next coming pages.
After this portion, readers will be able to study about all NBP all departments information, its tasks, and procedure how it performs.
In the next portion of my report will be consist on those Department where I got Training. I will show my tasks that I performed during my internship period. After this the major portion of my report will start, it will be the Banking function. I have clearly written NBP banking function, allocation of funds, the source of funds, etc according to Virtual University given format.
Now he fills the pay-in slip and deposits money on the counter. Following things are needed for opening of account: 1. Account opening form 2. Signature card 3. Letter of kinship 4. Letter of thanks 5. Issuances of cheque book Account opening form: Account opening form consist of a. Category of account b. Currency c. Title of account d. Account number e. Customer information f. Initial deposit g. Issuance of cheque book: Cheque book is issued to the customer after sending the letter of thanks when the customer comes with the letter of thanks and requests for the issuance of the cheque book.
A cheque book usually having 25 leaves is issued to the customer. Closing of Account: The customer can close the account.
The customer is required to submit an application for closing the account. The account is closed out and his balance is paid to him after deducting the closing charges, i. There are many reasons for closing of account 1. Account holder Owen request 2. Death of account holder 3. Foreign mail transfer FMT d. SWIFT e. Western union money transfer WUMT f. Its charges are fixed, i.
If payment is through account, Rs. NBP has its correspondent bank in New York. A person who wishes to remit money to someone in another place may if he does not send his own cheque, obtain from his bank a draft on demand payable to the person who is to be paid the money. Whenever a draft is drawn own advice is dispatches the same day. Advising the bank or branch as the case may be, of the particular of the draft of that banker on whom it is drawn may recognize the draft was it is presented.
When a person requires a draft, he should be asked to complete the prescribed application form in which he should state the amount of the draft, the name of the payee and the place of payment. The bank charges commission Rs. Then FDD is prepared and given to the customer. After this, they give credit to Main Office Karachi, and advice is also sent to Karachi.
Transfer by mail of an account of currency to another country. The Remitter sign auroras requesting the banker to transfer the amount by mail, giving the name and address of the payee. Foreign Bills for Collection: Under this head, all foreign cheques are included whose payments are to be received from abroad. When a customer asks the bank for collection, the cheque is sent to the bank on which is drawn. The maturity period of these certificates are 5 years, 7 years and 9 years. It can be issued and enchased only in rupees.
The customer account is debited and state bank of Pakistan SBP is credited. These are not drawn on any specified bank or banks, but payable at practically all banks throughout the world and guaranteed by some well-known institution. National bank purchases the traveler cheques from American Express Bank and makes the payment after selling it to the client. Procedure: A customer is required to submit the following things: Valid passport with visa Return ticket Currency to be deposited in Pak Rupees.
Ticket is endorsed. It is converted on the selling rate of that day. Traveler cheques are issued. Pak rupee currency account is necessary, and he has to present cheque for the amount to the bank. Endorsement of the ticket is very essential. Issuing ticket authority should endorse its stamp on the passport.
In case of transfer of funds the introduction of S. The system works like 57 Internet communication processes. All the banks in the world are registered for the service, which have the facility of online computers.
Headquarter of S. The message sent through this way does not require any code tests to confirm its authenticity. The sending process is more secure where two officers make the transmission of the message, one types the content with his code word and the other executes it with his password.
There are different types of codes that are used for the messages interchanged on the basis of the type of the transaction. Swift is a soft wear. Procedure: When any massage comes through swift 1st its received by head office then head office authority send that massages to different banks via mail to main branches of relative banks.
Western Union Money Transfer: Western union money transfer is a fastest way to receive money worldwide. It is working in almost countries. Different Govt.
First name b. Middle name c. Last name 3 Sender name a. Payment is made only in Pak rupees. WUMT form: It form is divided into three sections a. Spot A spot transaction is a two-day delivery transaction except in the case of the Canadian dollar, which settles the next day , as opposed to the futures contracts, which are usually three months.
The data for this study come from the spot market. Spot has the largest share by volume in FX transactions among all instruments. Forward One way to deal with the Forex risk is to engage in a forward transaction. In this transaction, money does not actually change hands until some agreed upon future date.
A buyer and seller agree on an exchange rate for any date in the future, and the transaction occurs on that date, regardless of what the market rates are then. The duration of the trade can be a few days, months or years.
Future Foreign currency futures are forward transactions with standard contract sizes and maturity dates. Swap The most common type of forward transaction is the currency swap. In a swap, two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date. These are not standardized contracts and are not traded through an exchange.
Option A foreign exchange option commonly shortened to just FX option is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.
The FX options market is the deepest, largest and most liquid market for options of any kind in the world. Exchange Traded Fund Exchange-traded funds or ETFs are Open Ended investment companies that can be traded at any time throughout the course of the day. Speculation Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly.
Factors affecting currency trading Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly.
No other market encompasses and distills as much of what is going on in the world at any given time as foreign exchange. Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology. Economic factors These include economic policy, disseminated by government agencies and central banks, economic conditions, generally revealed through economic reports, and other economic indicators.
Economic conditions include: 61 Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency. Balance of trade levels and trends: The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country's currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy.
For example, trade deficits may have a negative impact on a nation's currency. Inflation levels and trends: Typically, a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising.
This is because inflation erodes purchasing power, thus demand, for that particular currency. However, a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise shortterm interest rates to combat rising inflation.
Economic growth and health: Reports such as gross domestic product GDP , employment levels, retail sales, capacity utilization and others, detail the levels of a country's economic growth and health. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. Political conditions Internal, regional, and international political conditions and events can have a profound effect on currency markets.
For instance, political upheaval and instability can have a negative impact on a nation's economy. The rise of a political faction that is perceived to be fiscally responsible can have the opposite effect.
Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency. A great deal has been written of late in regard to the systematic gathering of credit information.
Sir Shabbir Dar is incharge of credit department. NBP provides short term long terms financing for domestic and international trade.
Withdrawal limits depend on the type of customers. Card holder is required to keep the PIN number in a safe place as all the operation on the ATM are carried out through the same. There is a time limit for drawing cash; customer cannot draw money before a certain time. This card contain: i - Six boxes for name. Following points are considered by the bank in this regard.
The Bank reserves to itself the right to refuse to open and account without assigning any reason. All information, which is necessary to be known by the bank, is requirements of the application form. From also requires the essential documents to be attached by the customer. When the concerned officer is satisfied then he opens the account and gives an account number that will be used in all communications with the bank in regard to the account and when making deposits and withdrawal.
Bank has a right not to open and account without assigning any reason or to close the account, if it is not operated in a satisfactory manner by the head office instructions.
However, the first cheque book is given to the customer only when all the required documents are checked. A cheque book contains twenty five, fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of the new cheque book. This slip is duly filled and singed by the customer. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank.
The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register.
The customer is required to submit and application for closing the account. Then the account is closed out and his balance is paid to him. Cheque book is returned back to bank and the officer cancel and the remaining cheques in cheque book.