Virtual University of Pakistan Evaluation Sheet for Internship Report Spring 2011

FINI61 ! Internship Report "Finan#e$ %re&it 'ours! (

Evaluation %riteria Report ,riting Presentation - Viva vo#e Final Result Na)e of Stu&ent! Muhammad Afaaq

Result Pass

Stu&ent*s I+!

MC090400284

Finance (FINI-619) Internship report of National Bank of Pakistan

1. Title Page:
Name of the organization: National Bank of Paki tan Name of the !nternee: Muhammad Afaaq "tudent !#: MC090400284 "e ion: 2009 $ 2011 "u%mi ion date of the intern hi& re&ort: 0'$0'$2011 Name of the (ni)er it*: +irtual (ni)er it* of Paki tan

V logo:

!. "etter of n#ertaking

$. %canne# cop& of the internship certificate (pro'i#e# (& the organi)ation)

*. +e#ication

,t first #e#icating this -ork to ,l.ight& ,"",/0 -itho1t his .erc& an# s&.path& I -as not a(le to acco.plish this -ork ,l.ight& ,"",/ ga'e .e po-er an# 4

confi#ence to #one .& internship an# also /2"3 P42P/5T /,6,4,T 7 /,77,+ (Peace (e 1pon hi.) -ho is a light for h1.anit&. I also #e#icate this -ork to .& lo'el& parents an# also #e#icating this -ork to o1r honora(le instr1ctor of Fini619 -ho help .e a lot to #o .& -ork acc1ratel& an# g1i#e .e in .& e'er& #iffic1lt&.

8. ,ckno-le#ge.ent
1 t of all ! thank to m* Almight* A--A. /ho ga)e me &o/er and 0onfiden0e to done m* intern hi& and .1-2 P31P.45 .A6A3A5 M(.AMMA# 7Pea0e %e u&on him8 /ho i a light for humanit*9

!n tarting am little %it 0onfu e %e0au e it m* 1 t e;&erien0e to /ork in &ra0ti0al life %ut m* 1 t e;&erien0e i )ar* good ! man* good &eo&le hel& me to do m* /ork effe0ti)el* &e0iall* m* in tru0tor of <!N! =19 hel& me a lot /hen ! 0onfu e in ome &art of intern hi& ! mail to in tru0tor re &e0ted "ir /ere al/a* read* to guide me during the re&ort /ork> /hi0h ga)e me a lot of %a0k$u&9 ! al o thank to m* %ank em&lo*ee of the NBP /ho remained u&&orti)e and 0oo&erati)e throughout the re&ort to 0om&lete it and &e0iall* %ran0h Manager Mi A ia A lam9 u00e all in e)er* field of M* ome enior friend al o guide me to make m* intern hi& re&ort ! /ould like to a* thank to all that &eo&le 9 Allah %le e them all and gi)e life9

6. 59ec1ti'e s1..ar&
! am doing m* intern hi& in famou and re&uted %ank of Paki tan the name of that %ank i National Bank of Paki tan the re&ort i %a ed on m* i; /eek intern hi& &rogram in National Bank of Paki tan9 A00ording to m* o% er)ation during intern hi& the NBP maintain an e;0ellent &o ition in %anking e0tor in Paki tan and thi i %a ed on the o)er all &erforman0e of National Bank of Paki tan9 5hi re&ort 0ontain the detail of NBP and the de&artment /here ! /orked during intern hi& and the e de&artment in0lude A00ount 1&ening #e&artment> Bill Colle0tion #e&artment> Ca h #e&artment> Credit #e&artment and 3emittan0e #e&artment9 !t al o in0lude the 3atio Anal* i and the e ratio in0lude all ratio that m* uni)er it* required /ith 0om&lete formula> /orking> ta%le> gra&h and inter&retation9 ! al o mention m* /ork e;&erien0e during intern hi& in different e0tor 9 ! al o di 0u in m* re&ort the e;e0uti)e ummar* of NBP and 3e0ommendation for !m&ro)ement and the our0e that ! u ed to make thi re&ort9 ! ha)e learned and informed a%out different

a &e0t

&e0iall* a%out %anking e0tor> it? m* 1 t /orking e;&erien0e o it /ill hel& me

/hile ! /ill %e &rofe ional9 NBP ha 12:4 nation/ide and almo t 2: %ran0he o&erating in other foreign 0ountrie in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Banglade h> and .ong @ong9 5he o%Ae0ti)e of thi !ntern hi& /a to e;&lore the i ue relating to <inan0e and to find out &ro%lem regarding the theoreti0al 0on0e&t /ith &ra0ti0al e;&erien0e /orking in an organization during the intern hi& and tud* the * tem of National Bank of Paki tan9 A00ording to m* kno/ledge there i mu0h &o i%le &erfe0tion > /hi0h /e 0an make &o iti)e 0hange in the * tem of NBP in 0oming *ear 9 !n thi m* NBP re&ort ! al o talk a%out the /a* of in)e tment> rate of in)e tment> all t*&e of finan0ing and loan er)i0e the National Bank of Paki tan &ro)ide 9 5he &ro%lem of %ran0h /here ! am doing intern hi& <$10 markaz %ran0h are al o di 0u ed9

:. Ta(le of content
"esson No. Title ; Topic

1.
a. (. c. #. e.

Title page
Na.e of the organi)ation Na.e of the Internee0 %t1#ent I+ an# session %1(.ission #ate of the internship report Na.e of the ni'ersit& V logo

!. $. *. 8. 6 :. <. 9.
a. (. c.

"etter of n#ertaking %canne# cop& of the internship +e#ication ,ckno-le#ge.ent 59ec1ti'e s1..ar& Ta(le of contents Brief intro#1ction of the organi)ation=s (1siness sector 2'er'ie- of the organi)ation
Brief histor& 2rgani)ational /ierarch& chart B1siness 'ol1.e (Total n1.(er of stock0 shares0 (on#s; co..o#ities0 f1t1re contracts planne# for a partic1lar

Page No. 1 1 1 1 1 1 ! $ * 8 6 9-1> 11-!1 11-1$ 1*-18 16

'

#. e. f. g.

perio# etc). Pro#1ct lines ("ist co.plete range of pro#1cts; ser'ices of the organi)ation) ?o.petitors Brief Intro#1ction of all the #epart.ents ?o..ents on the organi)ational str1ct1re

1: 1< 19-!> !1 !! 1: 1: 1: !$ !$ !8 !6 !: !< !9 !9

1>. a. (. c. 11.
1 !n# $r# *th 8th
st

Plan of &o1r internship progra.

, (rief intro#1ction of the (ranch -here &o1 #i# &o1r internship %tarting an# en#ing #ates of &o1r internship Na.es of the #epart.ents in -hich &o1 got training an# the #1ration of &o1r training

Training progra.
,cco1nt 2pening +epart.ent Bill ?ollection +epart.ent ?ash +epart.ent ?re#it +epart.ent 4e.ittance +epart.ent

1!.
a$ 2 2 2 0$

4atio ,nal&sis
.i/ui&ity Ratios .i/ui&ity ratios )easure a fir)*s a0ility to )eet its #urrent o0ligations1 %urrent Ratio 3#i& 4est Ratio 5orking #apital .everage Ratios .everage ratios )easure the &egree of prote#tion of suppliers of long ter) fun&s1 4i)es Interest Earne& +e0t Ratio +e0t 6 E/uity Ratio +e0t to 4angi0le Net ,orth Ratio 4otal %apitali7ation Ratio Profita0ility Ratios Profita0ility ratios )easure the earning a0ility of a fir)1 Net Profit 8argin Return on 3ssets +uPont Return on 3ssets 9perating In#o)e 8argin

!9 $1 $$ $8

2 2 2 2 #$ 2 2 2 2

$8 $: $< *> *1 *$

*$ *8 *: *9

2 2 2 &$

2 2 e$

2 2 2

Return on 9perating 3ssets Return on 4otal E/uity :ross Profit 8argin 3#tivity Ratios 3#tivity ratios )easure a fir);s a0ility to #onvert &ifferent a##ounts ,ithin their 0alan#e sheets into #ash or sales1 4otal 3ssets 4urnover Fi<e& 3ssets 4urnover 8arket Ratios 8arket ratios are #o))only use& 0y the investors to assess the perfor)an#e of a 0usiness as an invest)ent an& also the #ost of issuing sto#k1 +ivi&en& per share Earning per Share Pri#e6Earning Ratio

8> 8! 8* 88

86 8: 89

1$. 1*. 18. 16. 1:.

F1t1re Prospects of the 2rgani)ation ?oncl1sion 4eco..en#ations for I.pro'e.ent 4eference @ %o1rces 1se# ,nne9es

89 61 6$ 68 66-6: 6<-:> :1 :1

<. Brief intro#1ction of the organi)ation=s (1siness sector

Am doing m* intern hi& in NBP f$10 %ran0h markaz ! lama%ad no/ ! /ill di 0u %rief introdu0tion of national Bank of Paki tan in %u ine e0tor the

5he national %ank of Paki tan /a e ta%li hed in 9 th No)em%er 1949 under the ordinan0e B!B9 5he NBP 0ommen0ed it o&eration from 20th No)em%er 19499 5he Bank /a in0or&orated under the National Bank of Paki tan 1rdinan0e 1949 and i li ted there Paki tani to0k e;0hange 9 5he %ank 0ontrol trea ur* dealing for the Co)ernment of Paki tan a a re&re entati)e to the "tate Bank of Paki tan9 NBP offer a 0ommer0ial %anking and interrelated er)i0e in Paki tan a /ell a out ide of Paki tan9 5he %u ine e0tor of NBP i %anking e0tor and the %ank &la* a )ital role in an e0onom* of 0ountr* NBP al o &la*ed an im&ortant role NBP al o &ro)ide %anking or finan0ial er)i0e in

Paki tan %ank &la* a maAor &art in e0onom* no/ a da* the 0urrent e0onomi0 0ri i in united tare and 4uro&e a /ell a Paki tan a /e ee da* %* da* do/n izing and i %e0au e the ongoing /eakne of maAor %ank and the re ult of all thi i 0redit and 0a&ital 0ru h o /e 0an a* it &ro)e from hi tor* that the %anking e0tor i &la* a )ar* im&ortant role in national and glo%al e0onom*9 National %ank of Paki tan &ro)ide to it 0u tomer the follo/ing %enefit a)ing a00ount > home finan0ing> &er onal loan > A5M and de%it 0ard > finan0ing fa0ilit* for to0k in)e tor > !nternet %a ed home remittan0e er)i0e> 0a h again t gold> and &er onal a00ident in uran0e the e %enefit i )ar* u eful for 0u tomer 9 !n %et/een 2002 to 200' the a00elerated e0onom* gro/th of Paki tan /a under&inned %* a trong %anking e0tor the %anking indu tr* a et i a%o)e D=0 it &rofit remain high and it NP-" are lo/9 Paki tan i ! lami0 0ountr* and the national %ank of Paki tan offer i ! lami0 %anking er)i0e the e er)i0e in0lude de&o it 0heme > like 0urrent de&o it 0heme and &rofit and lo haring de&o it 0heme and al o finan0ing fa0ilitie and al o &ro)ided letter of 0redit fa0ilit*> i uan0e of %ank draft and &a* order > handling of remittan0e > go)ernment 0olle0tion > 0olle0tion of e;&ort %ill and lo0al %ill > and utilit* %ill 0olle0tion er)i0e 9 !t al o &ro)ided international %anking trade that &ro)ide er)i0e 0om&ri e letter of 0redit> trade finan0ing> international &a*ment and 0olle0tion er)i0e > tru0tured trade finan0e> do0ument &re entation and &a*ment er)i0e > &reE and &o tE hi&ment finan0ing> %ankEtoE%ank reim%ur ement > do0umentar* 0redit > im&ort finan0e> hi&&ing guarantee > and 0a h management olution 9 NBP i go)ernment %ank o &eo&le tru t to NBP i high a 0om&are other %ank and NBP &ro)ide tru tee er)i0e to national in)e tment tru t> long$term 0redit fund> and endo/ment fund for tudent loan 0heme9

10

9. 2'er'ie- of the organi)ation

a. Brief histor&
/istor&: NBP /a e ta%li hed under the National Bank of Paki tan 1rdinan0e in No)em%er 8 1949 in Paki tan and / a 1 0 0 F g o ) e r n m e n t o / n e d 9 5he need for the e ta%li hment 0ame due to the rea on of ne/l* 0ountr* /ith e0onomi0 0ri i 9 !n Gul* 1948 to 0arr* on the re &on i%ilitie of i uing the 0urren0* and mo t im&ortantl* 0ontrolling the flo/ of mone* in ide the 0ountr*9 4ole: 5he "&e0ial 3ole of National Bank of Paki tan i o00u&ie a unique &o ition in the finan0ial e0tor of Paki tan9 !t al o a0t a an agent of the Central Bank /here)er the "tate Bank doe not ha)e it o/n Bran0h9 !t al o undertake Co)ernment 5rea ur* o&eration 9

11

2-nership: NBP i 100F o/ned %* the Co)ernment of Paki tan9 Branch Net-ork: NBP ha an e;ten i)e dome ti0 %ran0h net/ork of o)er 1:00 %ran0he lo0ated all o)er Paki tan9 5he Bank al o ha a &re en0e in 24 international lo0ation in0luding the ("A> (nited @ingdom> 4uro&e and the <ar 4a t9 +eposits of National (ank of Pakistan: NBP hold 249=F hare of time and demand de&o it in the 0ountr*9 -o0al 0urren0* de&o it 0om&ri e ='F of %ankH total de&o it /hile foreign 0urren0* de&o it a00ount for the re t9 /ea# office an# Branches: .ead offi0e of national %ank i in @ara0hi /ith their 14,1 %ran0he lo0al and 24 %ran0he internationall*9 Pro'incial /ea#A1arters: "indh 0=> Balu0hi tan 02> PunAa% 14> NI<P 0:> Azad @a hmir 02> total 299 ,-ar#e#: National %ank of Paki tan /a gi)en a/arded of %e t %ank of the *ear in 2001> 2002> and 2004 %* the %anker a &u%li0ation of finan0ial time -ondon9 !n 200: the national %ank of Paki tan i al o gi)en %e t %ank of the *ear %* the %anker %* glo%al finan0e magazine9 National Bank ha earned re0ognition and numerou a/ard internationall*9 !t ha %een the re0i&ient of 5he Bank of the 2ear 2001> 2002> 2004 and 200: A/ard %* 5he Banker Magazine> the Be t <oreign 4;0hange Bank EE Paki tan for 2004> 200:> 200= and 200'> Clo%al <inan0e> Be t 4merging Market Bank from Paki tan for the *ear 200:> Clo%al <inan0e> @i an 5ime A/ard E 200: for NBPH er)i0e in the agri0ulture field9 !t i li ted among t the 3egionH large t %ank and al o among t the large t %ank in "outh A ia 200:> 5he A ian Banker9 !t ha al o %een &re ented a 3e0ognition A/ard EE 2004 for ha)ing a Cender "en iti)e Management %* I4BC1P AA".A %e ide other a/ard 9 Precise %1..ar& of National Bank of Pakistan &ear (& &ear 5he &re0i e ummar* of National Bank of Paki tan regarding it 0ountr*/ide and o)er ea o&eration i a fallo/ : !n the *ear 1949 National Bank of Paki tan /a e ta%li hed under the National Bank of Paki tan 1rdinan0e 1949 and /a 100F go)t9$o/ned9 !n the *ear 19:0 NBP e ta%li hed a %ran0h in Geddah> "audi Ara%ia9 5he Bank in 19:0 had one u% idiar* J5he Bank of Baha/al&ur? on #e0em%er4>

12

!n the *ear 194' %* the former Baha/al&ur "tate !n the *ear 19:: B* thi time NBP had %ran0he in -ondon and Cal0utta9 !n the *ear 19:' NBP e ta%li hed a %ran0h in Baghdad> !raq9 !n the *ear 19=2 NBP e ta%li hed a %ran0h in #ar$e $"alaam> 5angan*ika9 !n the *ear 19=4 5he !raqi go)ernment nationalized NBPH Baghdad %ran0h9 !n the *ear 19=: 5he !ndian go)ernment eized the Cal0utta %ran0h on the out%reak of ho tilitie %et/een !ndia and Paki tan9 !n the *ear 19=' 5he 5anzanian go)ernment nationalized the #ar$4 $"alaam %ran0h9 !n the *ear 19'1 NBP a0quired Bank of ChinaH t/o %ran0he > one in @ara0hi and one at Chittagong9 At e&aration of 4a t Paki tan NBP lo t it %ran0he there9 NBP merged /ith 4a tern Mer0antile Bank and /ith 4a tern Bank Cor&oration9 !n the *ear 19'4 the go)ernment of Paki tan nationalized NBP9 A &art of the 0on0omitant 0on olidation of the %anking e0tor> NBP a0quired Bank of Baha/al&ur 7e t9 194'89 !n the *ear 19'' NBP o&ened an off hore %rain Cairo9 !n the *ear 1994 NBP amalgamated Mehran Bank 7e t9 199189 !n the *ear 199' NBPH %ran0h in A hga%at> 5urkmeni tan 0ommen0ed o&eration 9 !n the *ear 2000 NBP o&ened a re&re entati)e offi0e in Almat*> @azakh tan9 !n the *ear 2001 "tate Bank of Paki tan and Bank of 4ngland agree to allo/ onl* 2 Paki tani %ank to o&erate in the (@9 NBP and (nited Bank agreed to merge their o&eration to form Paki tan !nternational Bank> of /hi0h NBP /ould o/n 4:F and (nited Bank ::F9 !n the *ear 200, NBP re0ei)ed &ermi ion to o&en a %ran0h in Afghani tan9 !n the *ear 200: NBP 0lo ed it off hore %ran0h in Cairo /hi0h o&ened in 19''9 1,

(. 2rgani)ational /ierarch& chart

"*ed Ali 3aza Chairman NBP Board of #ire0tor Kamar .u ain Pre ident NBP
14

M39 5ariq @irmni #ire0tor Mr 9 .ani*a "hahid Na eem #ire0tor M Nazrat B ahir #ire0tor Mr9 4khlaq Ahmed "e0retar* Board of #ire0tor 2rgani)ational /ierarch& ?hart at NBP /ea# 2ffice Barachi

2rgani)ation ?hart of NBP

1:

c. B1siness 'ol1.e

1=

In 7illions
+escription Profit (efore ta9 Profit after ta9 %harehol#er =s eA1it& ,#'ances C net Total ,ssets +eposits In'est.ents 5arnings per share !>>6 2=>,11 1'>022 ,:,>04: ,1=>110 =,:>1,, :01>='2 1,9>94' 129=: !>>: 28>0=1 19>0,4 =9>2'1 ,40>,19 '=2>194 :91>90' 211>14= 1491: !>>< 2,>001 1:>4:9 81>,=' 412>98' 81'>':8 =24>9,9 1'0>822 11949 !>>9 21>,00 1'>:=2 94>142 4':>24, 944>:8, '2'>4=: 21'>=4, 1,90: !>1> 2>4>41: 1'>:=, 10,>'=2 4''>:0' 1>0,:>02: 8,2>1:2 ,01>,24 1,90:

#. Pro#1ct lines
5he &rodu0t line i gi)en %elo/
P34M!(M AM#AN! P34M!(M "A+43 "A!BAAN A#+ANC4 "A-A32 CA". CA3# !N+4"513 A#+AN5AC4 CA". AN# C1-# @!"AN 5AKA5 @!"AN #1"5 1'

PA@ 34M!5 P3154C5!1N ".!4-#

%er'ices
! lami0 Banking "tudent -oan "0heme #emand #raft 7##8 4quit* !n)e tment Commer0ial <inan0e 5rade <inan0e !nternational <inan0e .ome <inan0e <oreign Curren0* A00ount "hort 5erm !n)e tment N!#A7 National !n0ome #ail* A00ount8 <oreign remittan0e 5ra)eler Cheque "/ift "* tem -etter of Credit Pa* 1rder 7P18 Mail 5ran fer 7M58

e. ?o.petitors
No/ a da* in thi /orld of 0om&etition the NBP i fa0ing mu0h 0om&etition9 5he 0om&etitor li t of NBP i )er* large a there are man* &ri)ate and 0ommer0ial %ank o&erating in the 0ountr*9 Com&etitor of the NBP /hi0h are gi)en %elo/

MCB Bank -imited .a%i% Bank -imited .a%i% Metro&olitan Bank -imited 18

"audi Pak Bank -imited Atla Bank -imited "!-@BAN@ -imited (nited Bank -imited Allied Bank -imited A kari Commer0ial Bank -imited Bank Al$.a%i% -imited Bank Al$<alah -imited9 "tandard Chartered Bank -imited <ir t Iomen Bank 5he Bank of @h*%er Bank of PunAa% <a* al Bank -imited Atla Bank -imited Bank Alfalah -imited "oneri Bank -imited A kari Bank -imited

f. Brief Intro#1ction of all the #epart.ents

5here are man* de&artment of National Bank of Paki tan ! /ill /rite the follo/ing main de&artment of National Bank of Paki tan <$10 Markaz %ran0h and /here ! got training a internee are gi)en %elo/: 1 t A00ount 1&ening #e&artment 2nd Bill Colle0tion #e&artment ,rd Ca h #e&artment 4th Credit #e&artment

19

:th 3emittan0e #e&artment ! alread* de 0ri%e in detail of the e entire de&artment in m* intern hi& re&ort 1ne %* one ! /ill ummarize or o)er )ie/ all the e again9

1st ,cco1nt 2pening +epart.ent:

!n m* 1 t 2 /eek of intern hi& ! /ork a an internee in a00ount o&ening de&artment in NBP9 !t? a maAor de&artment of NBP the %a i0 &ur&o e of A00ount 1&ening #e&artment the relation hi& %et/een %anker$0u tomer9 A00ount o&ening de&artment &erform the dut* of o&ening a00ount and i ue 0he0k%ook to 0lient 9 A &er on /ho reque t to o&en an a00ount /ith the %ank ha to fill an a00ount o&ening form o%tained from an* %ran0h of National Bank of Paki tan9 T&pes of acco1nts that are opene# ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount i o&ened9 1. P"% ,cco1nt or P"% %a'ing ,cco1nt !. ?1rrent ,cco1nt $. Fi9e# +eposit ,cco1nt

!n# Bill ?ollection +epart.ent:

! al o /ork in the %ill 0olle0tion de&artment in NBP during m* intern hi&9 5he %a i0 &ur&o e of %ill 0olle0tion de&artment i 0olle0ted utilit* %ill from 0u tomer that he &a* at end of e)er* month 5he e %ill in0lude Iater %ill Ca %ill 4le0tri0it* %ill 5ele&hone %ill

$r# ?ash +epart.ent:

! al o /ork in 0a h de&artment during intern hi& in NBP9 Ca h de&art in )ar* en iti)e de&artment o e)er* %ank a /ell a National Bank of Paki tan No %od* i allo/ed freel* like other de&artment thi de&artment all de&end on 0a h a e0urit* guard i al o tanding for afe from theft and al o en iti)e de&artment ome time 0u tomer &a* fraud are made in thi de&artment o e;tra 0are needed in thi de&artment9

*th ?re#it +epart.ent:

20

!n m* intern hi& &rogram in NBP ! al o /ork in 0redit de&artment9 5he %a i0 &ur&o e of thi de&artment id to 0olle0t &are> e;tra or ur&lu mone* or 0urren0* from &eo&le or 0u tomer at )ar* lo/ rate and gi)e or &ro)ided lend thi mone* at high rate to get more and more &rofit9 No/ a da* NBP gi)e a )ar* lo/ amount to 0u tomer %e0au e in Paki tan there i in ta%ilit* and da* %* da* the in)e tor go out from Paki tan %e0au e of in e0urit* finan0ial 0ri e i al o %ig 0au e of it o the loan ratio i )ar* lo/ do/n da* %* da* /ith the &a age of time9

8th 4e.ittance +epart.ent:

<inall* in m* la t /eek of intern hi& a an internee in NBP ! /ork in 3emittan0e #e&artment9 5he remittan0e de&artment tran fer the mone* from dome ti0 to international le)el9 A00ording to m* learning there are t/o 0ategorie of remittan0e de&artment 1 t one i dome ti0 or lo0al remittan0e de&artment and the 2 nd one i foreign remittan0e de&artment9 !n lo0al remittan0e the tran fer mone* /ith in national or dome ti0 %oundarie and in foreign tran fer mone* out ide from national or international %oundarie !n m* intern hi& &rogram the manager told me the main fun0tion of 3emittan0e #e&artment the e main or im&ortant fun0tion take &la0e in the follo/ing /a* ! o% er)ed the e are Clo ing and 0rolling of go)ernment 0olle0tion > i uing of &a*ment order> i uing of demand draft> i uing of 0all de&o it> i uing of Mail tran fer and i uing of 0all de&o it9 !n NBP remittan0e take &la0e in the follo/ing /a* 9 5he e /a* are gi)en %elo/9 1st Telegraphic ; 7ail Transfers an# its eas& an# fastest -a& !n# one is +e.an# +raft ; Pa& 2r#ers

g. ?o..ents on the organi)ational str1ct1re

! under tand during m* intern hi& &rogram the 1rganizational "tru0ture NBP i 0entralized %ut need ome 0hange /ith the &a age of time %e0au e in thi /orld da* %* da* te0hnolog* 0hange and it ne0e ar* to 0hange the 1rganizational "tru0ture time %* time and ! al o o% er)ed the NBP i the olde t %ank of in Paki tan and in la t =2 *ear a lot of 0hange in NBP 1rganizational "tru0ture %ut ! o% er)ed the 1rganizational

21

"tru0ture i not &rofe ionall* de)elo&ed and im&lemented9 !n NBP <$10 Markaz Bran0h /here ! /ork a internee in that de&artment all em&lo*ee in different de&artment /ork &ro&erl* and here 1rganizational "tru0ture %ut al o need ome 0hange 9

1>. Plan of 7& internship progra.

Intro#1ction of (ranch Name of %ran0h: National Bank of Paki tan <$10 Markaz Bran0h Cit*: ! lama%ad Bran0h Code: 19,, Bran0h manager: Mi A ia A lam 1&erating manager: Mr9 Ali Phone Num%er: L92$0:1$9218',4

22

! did m* intern hi& or training from National %ank of Paki tan <$10M4 Markaz ! lama%ad and %ran0h 0ode i 19,,9(nder the %ran0h manager Mi national %ank the %ran0h manager i Mi A ia A lam9 !n thi %ran0h of A ia A lam and Mr9 Ali i o&erating manager

%oth are u&erior /orking and )er* fair /ith their Ao%9 Ihen ! tart m* intern hi& ! fa0e man* diffi0ultie %e0au e it m* 1 t e;&erien0e to do training or intern hi& in an* /here o ! don?t ha)e e;&erien0e &ra0ti0al /ork %efore %ut here 0oo&erati)e management &e0iall* mi A ia A lam Bran0h manager hel& me for m* thi 1 t to 0om&lete m* ta k or taff i al o )ar* effi0ientl* and ! o% er)ed the other management mem%er

0oo&erati)e /ho al o hel& me in a friendl* manner 9 !n tart am little %it 0onfu e %ut after the o% er)ed the 0oo&eration of taff ! enAo* m* intern hi& ! al o a&&re0iate and thank all management /ho hel& me to 0om&lete m* ta k in good manner 9 +1ration of 7& training or Internship Progra. 5he tarting date of m* !ntern hi& Program i 7a& 90 !>11 5he ending date of m* !ntern hi& Program i D1ne !!0 !>11 Na.e of the +epart.ent in -hich I -orke# in .& internship. Na.e of the +epart.ent A00ount 1&ening #e&artment Bill Colle0tion #e&artment Ca h #e&artment 3emittan0e #e&artment9 +1ration ! Eeeks 1 Eeek 1 Eeek 1 Eeek

11. Training progra.

M* training or intern hi& &rogram from National Bank of Paki tan <$10 Markaz Bran0h ! lama%ad ! al o mention the de&artment /here ! /ork a internee that i gi)en %elo/9

1st ,cco1nt 2pening +epart.ent !n# Bill ?ollection +epart.ent $r# ?ash +epart.ent *th ?re#it +epart.ent

2,

8th 4e.ittance +epart.ent

1ne B* one ! /ill de 0ri%e in detail of all m* training &rogram de&artment

1st ,cco1nt 2pening +epart.ent

5he a00ount o&ening de&artment i a fir t de&artment /here ! learned and &ent m* intern hi& ma;imum &eriod 2 /eek a 0om&are to other de&artment 9 !n m* )ar* 1 e;&erien0e &ra0ti0all* %ut the 0oo&erati)e
t

da* ! am little %it 0onfu ed to tart and learned a%out de&artment %e0au e it m* 1 t taff and %ran0h manager hel& me to under tand all &ro0edure no/ ! o% er)ed ho/ the em&lo*ee /ork in thi de&artment and /hat i the requirement to o&en the a00ount and /hat i the rule and &ro0edure to follo/ the 0u tomer9 !n thi de&artment require ome %a i0 requirement for o&en an a00ount of 0u tomer the 0u tomer mu t ha)e the referen0e of an* re iden0e of Paki tan /ho ha alread* a00ount holder of National Bank of Paki tan and /hen 0u tomer gi)e referen0e of ome one /ho ha a00ount in NBP the %ank 0onfirm it /ith NA#3A9 After , or 4 da* ! learned man* thing a%out o&ening a00ount and rule and &ro0edure and al o the requirement like /hat i the title of a00ount> addre of the 0u tomer> re0ent !# 0ard num%er> National ta; num%er> P5C- and Mo%ile num%er amount de&o it> ignature> -a/ mu t qualif* the 0u tomer> Age of maAorit* and mu t %e of ound mind 5han ! learned and o&ened a a00ount of 0u tomer under u&er)i ion of taff and the e &ro0edure mu t %e follo/ed the 0u tomer 0ome to %ank and meet the manager a%out a00ount o&ening &ro0edure than manager guide him or her a%out the a00ount he or he /ant to o&en in the %ank than manager guide me and ! follo/ the rule no/ gi)e to 0u tomer a00ount o&ening form along /ith do0ument like ignature 0ard and Pa*$in$ li&9 5han the 0u tomer fill the a00ount o&ening from if he ha an* diffi0ult* than management or a00ount o&ening offi0er guide him or her and /hen 0u tomer fill are form thi form ent to manager for a&&ro)al than the 0on0erned offi0er gi)e ne/ a00ount num%er and guide to de&o it initial de&o it in 0a h 0ounter9 And 0he0k %ook gi)e to 0u tomer a00ording to 0u tomer need or requirement %e0au e ome 0he0k %ook ha 2:> :0 and more it? de&end on 0u tomer requirement9 Ihen ! o&ened ome a00ount than ! kno/

24

the &ro0edure and after thi it? )ar* ea * for me %e0au e ! kno/ no/ all &ro0edure to o&en a a00ount and ! o&ened ome a00ount T&pes of acco1nts that are opene# ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount i o&ened9 1. P"% ,cco1nt or P"% %a'ing ,cco1nt !. ?1rrent ,cco1nt $. Fi9e# +eposit ,cco1nt 5he detail of the e a00ount are gi)en %elo/ one %* one9

1. P"% ,cco1nt or P"% %a'ing ,cco1nt

1 t ! /ould like to di 0u %u ine the P-" a00ount or P-" a)ing a00ount that ! learned from manager it i intere t free a00ount mo tl* the lo/er or middle in0ome le)el or mall man> Allam or Moulana or &eo&le /ho don?t like intere t like u uall* make u0h de&o it in thi a00ount the tran a0tion9 !n thi a00ount the tran a0tion i not e)er* da* or dail*9 <und 0an normall* de&o ited through &a* order> 0a h> 0he0k et09

!. ?1rrent ,cco1nt
2nd ! like to di 0u the 0urrent a00ount that ! learned from manager thi a00ount or 0urrent a00ount it? de&end on dail* %a e normall* through 0heque> A5M> Pa* order et0 dra/n on the %ank and the e de&o it tand the 0urrent lia%ilit* of the %ank9 5he %ank kee& fund of hi hand and 0u tomer normall* u e thi a00ount mo tl* no/ a da* through A5M %e0au e it )ar* ea * and ad)an0ed method9 And there i no limit for de&o it9

$. Fi9e# +eposit ,cco1nt

,rd ! /ould like to di 0u the fi;ed de&o it a00ount ! learned from manager that thi man for a u e a 0om&are to other a00ount9 !n a00ount normall* o&ened and high fa0ult* or e;tra ordinar* &eo&le or %u ine long &eriod of time and thi t*&e of a00ount i le

thi a00ount the 0u tomer in)e t in different e0tor for a long &eriod of time /here hi or 2:

her mone* i

a)ed from theft and al o /ith higher return9 5he other a00ount ! o&ened &eo&le u e %ut thi fi;e

%e0au e the e are dail* u e a00ount and normal or middle 0la

a00ount ! don?t o&ened %e0au e in m* in m* &eriod of intern hi& there in onl* 1 or 2 &eo&le /ho o&ened thi a00ount ! learned %ut not a00urate o ! got more information from the manager of the %ank9

!n# Bill ?ollection +epart.ent

!n m* intern hi& &rogram ! al o /orked in Bill Colle0tion de&artment in one /eek9 !n 1 t da* in %ill 0olle0tion de&artment 1 get information from manager a%out the fun0tion> rule and &ro0edure in)ol)e in %ill 0olle0tion de&artment after get information from manager ! ee or o% er)ed %ill 0olle0tion de&artment 0olle0t different utilit* %ill /hi0h &eo&le &a* e)er* month 9 5he e %ill in0lude

Eater (ills Fas (ills 5lectricit& (ills Telephone (ills

! 0olle0t ome %ill a00ording to in tru0tion that manager gi)e me a%out %ill 0olle0tion de&artment and in %ill 0olle0tion de&artment m* dut* i /hen 0olle0t %ill i mu t ee the due date and /hat? the amount 0olle0t in due date and the e are /ritten in e)er* %ill and after date %e0au e after date e;tra amount &aid or late &a*ment 0harge &aid %* the 0u tomer if %ill not &aid /ithin due date9 Al o mention in %ill manuall* if 0u tomer gi)e %ig note like note of 3" :000 and %ill id 10:0 than in %ill /ritten manuall* :000$10:0 N ,9:0 it mean 0u tomer gi)e :000 note and %ill amount i 10:0 /e dedu0t from :000 and /e gi)e ,9:0 the remaining amount to 0u tomer9 5he amount re0ei)ed like in due date amount re0ei)ed 0ir0le the re0ei)ed amount /ithin due date and if &a*ment id after due date 0ir0le after date and in after date late &a*ment 0harge in0luded and 0ir0le and 0olle0t mone* and than %ank tam& and al o igh on it i it guarantee that thi mean f$ 10 markaz ! lama%ad %ran0h re0ei)ed thi %ill9 5he %ank al o 0harge 0ommi ion in ea0h %ill that i re)enue of the %ank and al o for go)ernment of Paki tan9 At the end of

2=

the da* all amount 0ount 0ount that re0ei)ed from from re0ei)ed again t %ill 0olle0tion from 0u tomer and gi)e %* the rele)ant %ill 0olle0tion de&artment and %ill 0olle0tion de&artment end mail to the head offi0e9

$r# ?ash +epart.ent

!n duration of m* intern hi& in NBP a internee ! /ork in 0a h de&artment fro 1 /eek9 !n 0a h de&artment 1 t ! tr* to under tand /orking &ro0edure in thi de&artment ! al o o% er)ed that 0a h de&artment i the mo t im&ortant e0tion in the %ank9 Ca h de&artment &erform the fun0tion of %ank &a*ment and re0ei&t> go)ernment re0ei&t and &a*ment and 0olle0tion of utilit* %ill 5he 0a h de&artment i )ar* im&ortant and en iti)e %e0au e in thi de&artment no %od* i allo/ed freel* like other de&artment thi de&artment all de&end on 0a h a e0urit* guard i al o tanding for afe from theft and al o en iti)e de&artment ome time 0u tomer &a* fraud are made in thi de&artment o e;tra 0are needed in thi de&artment9 And if 0lo ing the %alan0e i not mat0h than the 0a hier mu t mat0h it %efore lea)e thi de&artment ome time hour take to mat0h 0a h in thi de&artment if 0a h not mat0h than 0a hier &a* /ith it o/n &a* or /ith o/n re0our e "o 0a h de&artment i )ar* en iti)e de&artment mo tl* &eo&le 0ome for the &ur&o e of 0a h in thi de&artment /ith dra/n and de&o it if an* a00ount holder 0ome to dra/ the amount it mu t % 0he0ked the total amount on 0heque> date> ignature of the a00ount holder> and then he get &a*ment form the 0a h 0ounter from the 0a hier and ome a00ount holder 0ome for the &ur&o e of de&o it the mone* in 0a h de&artment9

*th ?re#it +epart.ent

A an internee ! /ork and o% er)ed in 0redit de&artment for the duration of 1 /eek in National Bank of Paki tan <$10 Markaz Bran0h ! lama%ad9 5he %a i0 &ur&o e of thi de&artment id to 0olle0t &are> e;tra or ur&lu mone* or 0urren0* from &eo&le or 0u tomer at )ar* lo/ rate and gi)e or &ro)ided lend thi mone* at high rate to get more and more &rofit9 2'

A00ording to m* o% er)ation and /ork a internee in NBP during m* intern hi& ! o% er)e that the %a i0 &ur&o e of 0redit de&artment i &ro)ide load to load eeker 9 5he e &eo&le get loan from %ank and fulfill our requirement and %ank 0harge intere t again t9 ! al o o% er)e no/ a da* of te0hnolog* e)er* %ank ado&t thi method to get &rofit9 ! o% er)ed /hen national %ank of Paki tan <$10 %ran0h ! lama%ad /hen NBP &ro)ide or gi)e to ome one ome %a i0 information 0olle0t %* the %ank to redu0e fraud %e0au e no/ a da* that? a %ig lo ome fraud &eo&le get illegall* loan from %ank and 0ant return to and ome are going out ide of 0ountr* and %ank ome fraud &eo&le /rite /rong addre

of %ank o %ank no/ a da* %ank 0onfirm it /ith the 0u tomer near ome %a i0 information that %ank get like

&oli0e tation a%out the re&utation of 0u tomer and NBP required ome %a i0 information and 0riteria %efore gi)e loan to &eo&le from or not9 No/ a da* NBP gi)e a )ar* lo/ amount to 0u tomer %e0au e in Paki tan there i in ta%ilit* and da* %* da* the in)e tor go out from Paki tan %e0au e of in e0urit* finan0ial 0ri e i al o %ig 0au e of it o the loan ratio i )ar* lo/ do/n da* %* da* /ith the &a age of time9 0u tomer name> National !dentit* Card> 5he required do0ument 0he0ked i it in original

8th 4e.ittance +epart.ent

!n m* intern hi& &rogram and al o la t /eek of m* intern hi& ! al o /orked in 3emittan0e de&artment in one /eek 9! o% er)ed or learned that main &ur&o e of 3emittan0e de&artment i to mo)e mone* from one &la0e to another &la0e9 5he the mone* from dome ti0 to international le)el9 remittan0e de&artment tran fer

A00ording to m* learning there are t/o 0ategorie of remittan0e de&artment 1 t one i dome ti0 or lo0al remittan0e de&artment and the 2nd one i foreign remittan0e de&artment9 !n lo0al remittan0e the tran fer mone* /ith in national or dome ti0 %oundarie and in foreign tran fer mone* out ide from national or international %oundarie !n m*

28

intern hi& &rogram the manager told me the main fun0tion of 3emittan0e #e&artment the e main or im&ortant fun0tion take &la0e in the follo/ing /a* ! o% er)ed the e are Clo ing and 0rolling of go)ernment 0olle0tion > i uing of &a*ment order> i uing of demand draft> i uing of 0all de&o it> i uing of Mail tran fer and i uing of 0all de&o it9 Ihen ! /ork in thi de&artment ! al o o% er)ed the im&ortant &arti0ular of demand draft filled> Name of the %ran0h on /hi0h draft i dra/n> Addre of the a&&li0ant> ignature of the a&&li0ant> e;0hange rate of the %ank> 5otal amount in figure and al o in /ord > name of the &er on /ho re0ei)e the mone*9 (nder the u&er)i ion manager ! fill ome demand draft that gi)e me ome u eful information a%out thi de&artment and ! al o /ant to get more and more information a%out thi de&artment and manager hel& me a lot9 !n NBP remittan0e take &la0e in the follo/ing /a* 9 5he e /a* are gi)en %elo/9 1 t 5elegra&hi0 M Mail 5ran fer and it ea * and fa te t /a* and 2 nd one i #emand #raft M Pa* 1rder Bank i re &on i%le for remittan0e from one %ank to another %ank in 0a e 5hi i m* la t /eek on intern hi& in national %ank of Paki tan and /ord in remittan0e de&artment ! /ork hard al o 0oo&erati)e taff and manager reall* hel& me for thi am thankful to all management and taff of National Bank of Paki tan <$10 %ran0h and al o thankful fro %ank %ran0h manager Mi A ia A lam he hel& me lot in m* all !ntern hi&

1!. 4atio ,nal&sis

a) "iA1i#it& 4atios "iA1i#it& ratios .eas1re a fir.=s a(ilit& to .eet its c1rrent o(ligations. These incl1#e: G ?1rrent 4atio

29

G ,ci# Test 4atio G Eorking capital

Na)e of the ratio

?1rrent ratio

F247 "", 2F ? 445NT 4,TI2 The for.1la of c1rrent ratio is gi'en (eloEith the help of for.1la -e calc1late or fin# c1rrent ratio

?1rrent 4atio H ?1rrent ,ssets ; ?1rrent "ia(ilities

!t mean /e add all 0urrent a et after add all 0urrent a et /e add all 0urrent lia%ilitie and than di)ide 0urrent ratio /ith 0urrent lia%ilitie A /e ho/n in gi)en %elo/

%ho- in ta(le
24A3"
Current a et Current lia%ilitie ?1rrent 4atio

!>><
:84>9''>140 =82>90:>4=1 >.<6 : 1

!>>9
=4:>0=4>1=: '2:>29,>'20 >.<9 : 1

!>1>
=9,>4=,>980 8='>=2=>,=' >.<> : 1

Eorking: Ehich short ter. a#'ances an# in'est.entsI 2nl& fi9e# #eposits -ill not (e consi#ere# here /el# for tra#ing an# a'aila(le for sale -ill (e consi#ere# as c1rrent

,0

?1rrent asset H Ca h and %alan0e /ith trea ur* %ank J Balan0e /ith other %ank J -ending to finan0ial in titution$net J hort term !n)e tment L "hort term Ad)an0e L 1ther a et 71nl* "hort 5erm8 After adding all 0urrent a et a00ording to gi)en format the 0urrent a et of 2008 N :84>9''>140 and 2009 N =4:>0=4>1=: and 2010 N =9,>4=,>980 ?1rrent lia(ilit& H Bill &a*a%le L "hort 5erm Borro/ing L "hort 5erm #e&o it and other a00ount L hort term lia%ilitie again t a et u%Ae0t to finan0e lea e L other lia%ilit*71nl* hort term8

After adding all 0urrent -ia%ilitie a00ording to gi)en format the Current -ia%ilitie of 2008 N =82>90:>4=1 and 2009 N '2:>29,>'20 and 2010 N 8='>=2=>,=' <inall* di)ide 0urrent a et /ith 0urrent lia%ilitie an /er i 0urrent ratio

:raphi#al Presentation of ?1rrent ratio

,1

Current Ratio

2010 2009 2008 0.75

Interpretation

0.8 0.89 0.86 0.8 0.85 0.9

5he 0urrent ratio ho/ in 2008 the 0urrent ratio of national %ank of Paki tan i 098: it mean the 0urrent a et in0rea e not mu0h a 0om&are to 0urrent lia%ilitie and in 2009 ho/ the in0ra ing trend a 0om&are to 2008 the 0urrent ratio of 2009 i 0988 %ut again in 2010 it ho/ 09'9 that i mu0h le a 0om&ared to 2008 and 2009 9

Na)e of the ratio G ,ci# Test 4atio

Eith the help of for.1la -e calc1late or fin# Acid Test Ratio For.1la is gi'en (elo,ci# Test 4atio H 7ore liA1i# ,ssets;c1rrent lia(ilities

,2

It .eans .ore liA1i# ,ssets ; ?1rrent lia(ilities

%ho- in ta(le
24A3"
More liquid A et Current -ia%ilitie ,ci# test 4atio

!>><
:82>2::>8'1 =82>90:>4=1 >.<8 :1

!>>9
=,0>040>=28 '2:>29,>'20 >.<: :1

!>1>
=91>1=0>4', 8='>=2=>,=' >.<> :1

Eorking:
7ore liA1i# ,ssets H Ca h and %alan0e /ith trea ur* %ank J Balan0e /ith other %ank J -ending to finan0ial in titution$net J hort term !n)e tmentL hort term Ad)an0e L 1ther a et7 hort term8 $ad)an0e7de&o it > rent and other &re&a*ment 89 ?1rrent lia(ilit& H Bill &a*a%le L "hort term Borro/ing L "hort term #e&o it and other a00ountL hort term lia%ilitie again t a et finan0e lea e L other lia%ilit*7 hort term8 u%Ae0t to

Fraphical Presentation of ,ci# Test 4atio

2010 2009 2008 0.76 0.78

0.8 Acid Test Ratio 0.87 0.85 0.8 0.82 0.84 0.86 0.88

Interpretation:

,,

A /e ee the more liquid A et are le

than 0urrent lia%ilitie in all three *ear 2008>

2009 and 2010 %ut in *ear9 A /e ee in gra&h the A0id 5e t 3atio of 2009 i higher a 0om&are to 2008 and 2010 and /e 0al0ulate A0id 5e t 3atio find all %* u%tra0t all &re&aid e;&en e from 0urrent a et to find it9

Na)e of the ratio G Eorking capital

5o find out /orking 0a&ital ratio /e u e the follo/ing formula that i gi)en %elo/

Eith the help of for.1la -e calc1late or fin# Working Capital

For.1la: Eorking ?apital ratio H ?1rrent ,ssets - ?1rrent "ia(ilit& %ho- in ta(le 7ake correctiosn as instr1cte# a(o'e
24A3"
Current a et Current lia%ilitie Eorking capital

!>><
:84>9''>140 =82>90:>4=1 -9:09!<0$!1

!>>9
=4:>0=4>1=: '2:>29,>'20 -<>0!!90888

!>1>
=9,>4=,>98, 8='>=2=>,=' -1:*016!0$<*

Eorking ?1rrent ,sset H Ca h and %alan0e /ith trea ur* %ank J Balan0e /ith other %ank J -ending to finan0ial in titution$net J "hort term !n)e tment L hort term Ad)an0e L 1ther a et7 hort term8 ?1rrent lia(ilit& H Bill &a*a%leL "hort term Borro/ing L "hort term #e&o it and other a00ount L "hort term lia%ilitie again t a et u%Ae0t to finan0e lea e L other lia%ilit*7"hort term8

Fraphical Presentation of Eorking capital

,4

-174,162,384 -80,229,555 -97,928,321

2010 2009 2008 0 Workin Ca!ita" ratio

-200,00 -150,00 -100,00 -50,000, 0,000 0,000 0,000 000

Eorking:

?1rrent asset H Ca h and %alan0e /ith trea ur* %ank J Balan0e /ith other %ank J -ending to finan0ial in titution$net J hort term !n)e tment L "hort term Ad)an0e L 1ther a et7"hort term8 ?1rrent lia(ilit& H Bill &a*a%le L "hort term Borro/ing L "hort term #e&o it and other a00ount L "hort term lia%ilitie again t A et lea e L 1ther lia%ilit*7"hort term8 u%Ae0t to finan0e

Interpretation:
Ie ee in all three *ear 2008> 2009 and 2010 thi 0an ho/ the negati)e trend /hi0h i the %ad ign for the 0om&an*9 !t due to the in0rea ing of 0urrent lia%ilitie or the e;0e for 0om&an*9 of lia%ilitie o)er 0urrent a et 9 !n 2010 negati)e igh in to mu0h high a 0om&are to 2008 and 2009 o it )ar* %ad

,:

() "e'erage 4atios
"e'erage ratios .eas1re the #egree of protection of s1ppliers of long ter. f1n#s. These incl1#e: G Ti.es Interest 5arne# G +e(t 4atio G +e(t ; 5A1it& 4atio G +e(t to Tangi(le Net -orth 4atio G Total ?apitali)ation 4atio

Na)e of the ratio G Ti.es Interest 5arne#

5o find out 5ime !ntere t 4arned /e u e the follo/ing formula that i gi)en %elo/

Eith the help of for.1la -e calc1late or fin# Ti.es Interest 5arne# For.1la: Ti.es Interest 5arne#: 5BIT ; Interest 59penses
5BIT H Profit (efore ta9ation J 7ark1p Interest 59penses ; Interest 59penses

%ho- in ta(le
3ears 5BIT Interest e9penses Total interest earne# 5BIT;Interest !>>< 4=>88:>'== 2,>884>'=8 1.96 Ti.es !>>9 =1>'89>822 40>489>=49 1.8! Ti.es !>1> =9>==:>:9: 4:>2:0>4'= 1.8$ Ti.es

,=

e9penses

Eorking:
Profit (efore Ta9ation: Mark u& in0ome EMarku& e;&en0e N Cro Cro &rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for the )alue of &rofit

!n)e tment L Pro)i ion again t off %alan0e heet o%ligation L Bad de%t /ritten off8 N Net .ark-1p interest inco.e Net mark$u& intere t in0omeL <ee 0ommi ion O %rokerage in0omeL #i)idend in0ome L4;0hange in0omeL L gain on ale of e0uritie L 1ther in0ome N Total non .ark 1p interest inco.e 5otal non marku& intere t in0ome$ Admini trati)e e;&en e$1ther &ro)i ion $ 1ther 0harge N Profit (efore ta9 Interest e9penses: !ntere t e;&en e gi)en in &rofit and lo head a mark u& return intere t e;&en e9 a00ount on 2 n d

Fraphical Presentation of Ti.es Interest 5arne#

2010 2009 2008 0 0.5 1

1.53 Ti#es $nterest %arned 1.52 1.96 1.5 2 2.5

Interpretation:
A /e ee in ta%le the 5ime intere t ratio i de0rea ing o)er the time9 !n 2008 the time intere t ratio i 199= %ut in 2008 it de0rea e it /ith 19:2 5ime

,'

intere t 0an al o ho/ the de0rea ing trend in 0oming *ear and than in0rea ing trend in ne;t *ear like !n 2009 it little in0rea e 19:, a 0om&are to 20099

Na)e of the ratio

G +e(t 4atio For.1la: +e(t 4atio H Total lia(ilities ; Total ,ssets

Its si.ple calc1late total lia(ilities of all &ear than calc1late total assets of all &ear an# than total lia(ilities #i'i#e (& total assets than -e fin# #e(t ratio

%ho- in ta(le
3ear 5otal lia%ilitie 5otal A et +e(t 4atio !>>< '1:>299>108 81'>':8>,2= >.<:8 Ti.es !>>9 82:>='=>,84 944>:82>'=2 >.<:* Ti.es !>1> 90=>:28>8:2 10,:>024>=80 >.<:6 Ti.es

Eorking
Total +e(ts H Bill &a*a%le L Borro/ing L #e&o it and other a00ount L "u%$ ordinated loan L-ia%ilitie again t a et ta; lia%ilit* L 1ther lia%ilit* Total ,ssets: Ca h and %alan0e /ith trea ur* %ank L Balan0e /ith other %ank L -ending to <inan0ial !n titution L !n)e tment L Ad)an0e L 1&erating fi;ed a et L #efferd ta; a et L other a et u%Ae0t to finan0e lea e L #eferd

Fraphical Presentation of +e(t 4atio

,8

3rd &tr 2nd &tr 1st &tr 0.873 0.8735 0.874 0.8745 0.874 0.875 0.875 0.8755

0.876 'e(t Ratio

0.876

0.8765

Interpretation:
A /e ee in ta%le the de%t ratio i not mu0h in0rea e or de0rea e it all ame in all three *ear 9 .ere 0om&an* ha)e more a et then de%t %e0au e de%t ratio of greater than 1 indi0ate that a 0om&an* ha more de%t than a et P /hile> a de%t ratio of le than 1 indi0ate that a 0om&an* ha more a et than de%t9

Na)e of the ratio

G +e(t ; 5A1it& 4atio

For.1la: +e(t to 5A1it& 4atio H Total lia(ilities (+e(t) ; %harehol#er eA1it&

%ho- in ta(le
3ear 5otal -ia%ilitie "hareholder 4quit* +e(t to 5A1it& 4atio !>>< '1:>299>108 81>49'>4:8 <.:< ti.es !>>9 2:>='=>,84 94>2=:>8:, <.:6 ti.es !>1> 90=>:28>8:2 10,>880>048 <.:$ ti.es

Eorking:
Total #e(ts H Bill &a*a%le L Borro/ing L de&o it and other A00ount L "u%$ordinate -oan -ia%ilitie again t A et 1ther lia%ilitie ,9 u%Ae0t to finan0e lea eL #eferred ta; -ia%ilitie L

%hare hol#er eA1it& N "hare Ca&ital L 3e er)e L una&&ro&riate &rofit L "ur&lu on re)aluation of fi;ed a et 9

Fraphical Presentation of +e(t ; 5A1it& 4atio

2010

8.73 'e(t to %)uit* Ratio

2009

8.76

2008 8.7 8.72 8.74 8.76

8.78 8.78 8.8

Interpretation:
A /e ee in ta%le the ratio of 2008 ho/ =998 /hi0h i de0rea ed in 2009 %* =994 %ut in 2010 it again in0rea e %* '90:9 !t hea)il* relie on de%t finan0e 9 ho/ that the 0om&an* i finan0e it a et and

Na.e of ratio: G +e(t to Tangi(le Net -orth 4atio:

For.1la: Total lia(ilit&;(Net -orth- Net intangi(le asset)
40

%ho- in ta(le
3ear 5otal -ia%ilitie 5angi%le net /orth +e(t to Tangi(le Eorth 4atio !>>< '1:>299>108 102>4:,>29, 6.9< Ti.es !>>9 82:>='=>,84 118>888>848 6.9* Ti.es !>1> 90=>:28>8:2 128>48'>:98 :.>8 Ti.es

Eorking:
Total +e(ts H Bill &a*a%le L Borro/ing L #e&o it and other A00ount L "u%$ordinate -oan -ia%ilitie again t A et 1ther lia%ilitie Net Iorth N 5otal A et $ 5otal lia%ilit* !ntangi%le a et N 7Mention in note of %alan0e heet 119,8 !ntangi%le a et of 2008 i :>92:> !ntangi%le a et of 2009 N 1'>:,0 and !ntangi%le a et of 2010 N 8>2,0 u%Ae0t to finan0e lea e L #eferred ta; -ia%ilitie L

:raphi#al Presentation of +e(t to Tangi(le Net -orth 4atio:

2010 2009 2008 6.85 6.9 6.95 6.94 6.98 7

7.05 'e(t to Tan i("e Wort+ Ratio

7.05

7.1

Interpretation:
5he o)erall ho/ the in0rea ing trend of the 0om&an* in 2008 it ho/ the =998 and there 2009 it de0rea e %* =994 and again in 2010 it in0rea e u& to '90:9

41

"o in *ear 2010 it? greater a 0om&are to 2008 and 2009 and it? le to 2008 and 20109

in 2009 a 0om&are

Na.e of ratio Total ?apitali)ation 4atio:

For.1la: "ong ter. #e(t ; "ong ter. #e(t J %hare hol#er eA1it&

%ho- in ta(le
3ear -ong term de%t "hare holder equit* L long term de%t ?apitali)ation 4atio !>>< ,2>,9,>=4' 11,>'=0>=49 >.!< Ti.es !>>9 100>,82>==4 194>:24>:8, >.81 Ti.es !>1> ,8>902>48= 142>==4>'9= >.!: Ti.es

Eorking:
"ong ter. +e(ts H -ong term %orro/ing L long term de&o it and other a00ount L "u%$ordinated loan L -ia%ilitie again t a et lea e L#eferd ta; lia%ilit* L 1ther lia%ilitie 7long term8 %hare hol#er eA1it&J long ter. #e(ts N "hare 0a&ital L 3e e)er L Luna&&ro&riated &rofit L ur&lu on re)aluation of a et L -ong term %orro/ing L long term de&o it and other a00ount L "u%$ordinated loan L -ia%ilitie again t a et u%Ae0t to finan0e lea e L #efferd ta; lia%ilit* L other lia%ilitie 7long term8 u%Ae0t to finan0e

:raphi#al Presentation of Total ?apitali)ation 4atio

42

2010 2009 2008 0 0.2

0.27 0.51 0.28 0.4 0.6 Tota" Ca!ita"i,ation Ratio

Interpretation :
5otal Ca&italization 3atio i high in 2009 a 0om&are to 2008 and 2010 the o)erall trend of de%t 0ontri%ution to/ard finan0ing ho/ the in0rea ing trend of the 0om&an*9 !n 2008 it ho/ the 29: and there i further in0rea e 2009 O 2010 o the o)erall trend of de%t 0ontri%ution to/ard finan0ing i high9

c) Profita(ilit& 4atios Profita(ilit& ratios .eas1re the earning a(ilit& of a fir.. These incl1#e: G Net Profit 7argin G 4et1rn on ,ssets G +1Pont 4et1rn on ,ssets G 2perating Inco.e 7argin G 4et1rn on 2perating ,ssets
4,

G 4et1rn on Total 5A1it& G Fross Profit 7argin Na.e of ratio G Net Profit 7argin

For.1la: Net Profit 7argin N Net Profit ;Net %alesK1>> %ho- in ta(le
3ear Net Profit La= Net %ales L(= Net Profit Margin ratio: aM% !>>< 180*8<089> =0>942>'98 2:94F !>>9 1:08610<*6 ''>94'>=9' 229:F !>1> 1:086$0!1* <<0*:!01$* 1999F

Eorking:
Net &rofit i the &rofit after ta; /hi0h i o%tained a : Mark u& re)enue E marku& e;&en e N Cro Cro &rofit

&rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L

Pro)i ion lending to finan0ial in titution L Bad de%t /ritten off8 N Net mark$u& in0ome Net mark$u& in0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on ale of e0uritie N 5otal in0ome 5otal in0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L "hare of in0ome N Profit %efore ta;

44

Profit %efore ta;$ ta; N Profit after ta; And net ale N Mark u& re)enue

:raphi#al Presentation of Net Profit 7argin

2010 2009 2008 0 5 10 15

19.9 -et .ro/it 0ar in 22.5 25.4 20 25 30

Interpretation:
5he ta%le ho/ that Net Profit margin i ho/ing de0rea ing trend in 2009> /hi0h again de0rea e in 2010 a 0om&are to 2008 o NBP ha not ignifi0ant im&ro)ed net &rofit margin in the thi *ear in 0oming *ear after 20089

Na.e of ratio

G 4et1rn on ,ssets
For.1la: 4et1rn on asset: (5BIT ; Total ,ssets)K1>>

%ho- in ta(le
3ear 5BIT a= !>>< 4=>88:>'== !>>9 =1>'89>822 !>1> =9>==:>:9:

4:

Total ,ssets L(= 3eturn on A et 3atio JaM%?

81'>':8>,2= :9',F

944>:82>'=2 =9:4F

10>$80>!*06<> =9',F

Eorking:
3e)enue E Marku& 4;&en e N Cro Cro Profit &rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to

finan0ial in titution L Bad de%t /ritten off8 N Net mark$ u& in0ome Net mark$u& in0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on ale of e0uritie N 5otal in0ome 5otal in0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L "hare of in0ome N Profit %efore ta; 5BIT H Profit (efore Ta9ation J Interest e9penses

Total ,ssets: Ca h and %alan0e

A et L #efferd ta; a et$net9

/ith trea ur* %ank L Balan0e /ith other %ank L

lending to finan0ial in titution L !n)e tmentL Ad)an0e L 1ther a et L 1&erating fi;ed

:raphi#al Presentation of 4et1rn on ,ssets

2010 2009 2008 5.2 5.4 5.6 5.73 5.8 6 6.2 6.4 6.6 6.54

6.73 Return on Assets

6.8

4=

Interpretation:
5he ta%le ho/ that the return on a et of 2008 i greater a 0om&are to 2009 and 2010 o the ratio anal* i e;&lain that 3eturn on A et i gro/ing in the *ear 2008> /hi0h i 2981F9 But after thi it in0rea e from &re)iou le)el and then it rea0hed at 292=F in finan0ial *ear 2009> again it de0rea e to 29,=F in *ear 20109

Na.e of ratio G +1Pont 4et1rn on ,ssets

For.1la: +1Pont 4et1rn on ,ssets H Net Inco.e;Net sales K Net %ales; total ,sset

%ho- in ta(le
3ear Net Net %ales L9= Net %ales; Total ,sset L&= +1Pont 4et1rn 2n ,ssets L9K& 1.91M 1.<:M 1.69M =0>942>'98M81'>':8>,2=N ''>94'>=9'M944>:82>'=2 88>4'2>1,4M1>0,:>024>=80 090': N0908, N0908: !>>< 1:>4:8>:90M=0>942>'98 !>>9 1'>:=1>84=M''>94'>=9' N0922: !>1> 1'>:=,>214M88>4'2>1,4 N09199

Inco.e; N092:4

4'

Eorking:
Net Inco.e;Net %ale:
Net Inco.e: Net &rofit or net in0ome i the &rofit after ta; /hi0h i o%tained a mark u& re)enue E marku& e;&en e N Cro Cro &rofit &rofit$ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to

finan0ial in titution L Bad de%t /ritten off8 N Net mark$u& in0ome Net mark$u& in0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on ale of e0uritie N 5otal !n0ome 5otal in0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L hare of in0ome N Profit %efore ta; Profit %efore ta; $ 5a; N Profit after ta; or net in0ome And net ale N Mark u& 3e)enue

Net %ale;Total ,sset:

Total ,ssets: Ca h and %alan0e /ith trea ur* %ank L Balan0e /ith other %ank L lending to finan0ial in titution L !n)e tmentL Ad)an0e L 1ther a et L 1&erating fi;ed a et L #efferd ta; a et$net

:raphi#al Presentation of +1Pont 4et1rn on ,ssets

2010 2009 2008 1.55 1.6 1.65

1.69 'u.ont Return 1n Assets 1.87 1.91 1.7 1.75 1.8 1.85 1.9 1.95

48

Interpretation:
A /e ee in gra&h and ta%le the #uPont 3eturn on A et ratio de0rea e in 2008 and 2010 a 0om&are to 2009 it mean in *ear 2009 the #uPont 3eturn on A et ratio i high a 0om&are to 2008 and 2010 it ha&&en due to in0rea e in mark$u& re)enue9

Na.e of ratio G 2perating Inco.e 7argin For.1la: 2perating inco.e .argin H (5BIT; Net %ales)K1>> %ho- in ta(le
3ears !>>< 4=>88:>'== =0>942>'98 '=99,F !>>9 =1>'89>822 ''>94'>=9' '992'F !>1> =9>==:>:9: <<0*:!01$* '89'4F

5BIT La= Net %ales L(= 2perating inco.e .argin La;(=

Eorking:
3e)enue E Marku& 4;&en e N Fross profit Cro &rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to finan0ial in titution L Bad de%t /ritten off8 N Net .ark-1p inco.e Net mark$u& in0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on ale of "e0uritie N Total inco.e 5otal !n0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L hare of in0omeN Profit (efore ta9 5BIT H Profit (efore Ta9ation J Interest e9penses

49

Net %aleN Mark u& re)enue

:raphi#al Presentation of 2perating Inco.e

7argin

2010 2009 2008 75.5 76 76.5 76.93 77 77.5 78 78.5

78.74 1!eratin inco#e #ar in 79.27

79

79.5

Interpretation:
A /e ee in gra&h and ta%le the 1&erating in0ome margin i de0rea ing o)er the *ear 2008 and 2010 a 0om&are to 2009 it ha&&en due to in0rea ing of ale more qui0kl* than to o&erating &rofit9

Na.e of ratio G 4et1rn on 2perating ,ssets

<ormula: 4et1rn on 2perating ,ssets H (5BIT; 2perating ,ssets)K1>>

%ho- in ta(le
3ears 5BIT La= 2perating ,ssets !>>< *60<<80:66 :=0>8,=>,08 !>>9 610:<90<!! =,:>80:>==' !>1> 6906680898 6*!0<6!0$>6

:0

L(= 3eturn on 1&erating A et J7aM%8Q100?

89,=F

99'2F

10984F

Eorking:
3e)enue E Marku& 4;&en e N Fross profit Cro &rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to finan0ial in titution L Bad de%t /ritten off8 N Net .ark-1p inco.e Net mark$u& in0ome L <ee O 0ommi ionL #i)idend in0ome L 4;0hange in0ome L 1ther in0ome L gain on ale of e0uritie N Total inco.e 5otal in0ome$ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L hare of in0ome N Profit (efore ta9 5BIT H Profit (efore Ta9ation J Interest e9penses 2perating ,ssets H Ca h and %alan0e /ith trea ur* %ank L -ending to finan0ial in titution L Ad)an0e E net L 1&erating fi;ed a et

:raphi#al Presentation of 4et1rn on 2perating

,ssets

:1

2010 2009 2008 0 2 4 6 8 8.36 10 9.72

10.84 Return on 1!eratin Assets

12

Interpretation:
A /e ee in ta%le and gra&h the 3eturn on o&erating a et i in0rea ing e)er* *ear o 3eturn on o&erating a et ratio i mo)ing to/ard lo/ /hi0h indi0ate that the Com&an* mu t gi)e attention to/ard it u age of o&erational a et9

Na.e of ratio G 4et1rn on Total 5A1it& For.1la: 4et1rn on 5A1it& H (Net inco.e;%harehol#er=s eA1it&)K1>> %ho- in ta(le
3ear

Net inco.e La= %harehol#er=s eA1it& L(= 4et1rn on 5A1it& La;(=

!>>< 180*8<089> 81>49'>4:8 1899'F

!>>9 1:08610<*6 94>2=:>8:, 189=,F

!>1> 1:086$0!1* 1>$0<<>0>*< 1=991F

Eorking:
:2

Net &rofit or net in0ome i the &rofit after ta; /hi0h i o%tained a Mark u& 3e)enue $ Marku& 4;&en e N Cro Cro &rofit &rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to

finan0ial in titution L Bad de%t /ritten off8 N Net mark $ u& in0ome Net mark $ u& !n0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on ale of "e0uritie N 5otal !n0ome 5otal in0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L hare of in0ome N Profit %efore ta; Profit (efore ta9- ta9H Profit after ta9 or Net inco.e %harehol#er=s eA1it& H"hare 0a&italL re er)e L una&&ro&riated &rofit L ur&lu on re)aluation of fi;ed a et 9

%o1rce:
Change in equit* tatement under the head 2092

Fraphical Presentation of 4et1rn on 5A1it&

2010 2009 2008 15 16

16.91 Return on %)uit* 18.63 18.97 17 18 19 20

Interpretation:

:,

3eturn on 4quit* (3148 tell u ho/ mu0h &rofit a 0om&an* earned in 0om&ari on to the total amount of hareholder ? equit*9 !n 2008 it /a 1<.99P it lightl* de0rea e in 2009 %* 1<.68M and again de0rea e in 2010 %* 16.9$M9

Na.e of ratio G Fross Profit 7argin

For.1la: F42%% P42FIT 7,4FIN H (Fross Profit ; Net %ales)K1>>

%ho- in ta(le
3ear

Fross Profit La= Net %ales L(= Cro Profit Margin 3atio J7aM%8Q100

!>>< $:0>8<0 >$> =0>942>'98 =0981F

!>>9 $:0*8<0>*< ''>94'>=9' 4890=F

!>1> *$0!!1068< <<0*:!01$* 4898:F

Eorking:
Cro &rofit N Mark u& re)enue $ Mark u& e;&en e

Net "ale N Mark u& 3e)enue

Fraphical Presentation of Fross Profit 7argin 4atio

:4

2010 2009 2008 0 10 20 30 40

48.85 2ross .ro/it 0ar in Ratio 48.06 60.81 50 60 70

Interpretation:
!n 2008 the &rofit margin ratio i =09,81 a%ut in 2009 and 2010 it ho/ de0rea ing trend9 !t i due to in0rea ing of mark u& e;&en e more qui0kl* than mark u& re)enue9

#) ,cti'it& 4atios ,cti'it& ratios .eas1re a fir.Ns a(ilit& to con'ert #ifferent acco1nts -ithin their (alance sheets into cash or sales. These incl1#e: G Total ,ssets T1rno'er G Fi9e# ,ssets T1rno'er
N,75 2F 4,TI2 G Total ,ssets T1rno'er
F247 ",: T2T," ,%%5T T 4N2V54 4,TI2 H Net sales ; Total ,ssets

::

%ho- in ta(le
35,4 Net sales La= Total ,ssets L(= Total ,ssets T1rno'er La; (= !>>< =0>942>'98 81'>':8>,2= >.>:*8 Ti.es !>>9 ''>94'>=9' 944>:82>'=2 >.><!8 Ti.es !>1> 88>4'2>1,4 1>0,:>024>=80 >.><88 Ti.es

Eorking:
Net sale N Mark u& 3e)enue M !ntere t 4arn M 3eturn Total ,ssets: Ca h and %alan0e /ith trea ur* %ank L Balan0e /ith other %ank L lending to finan0ial in titution L !n)e tment L Ad)an0e L 1ther a et L o&erating fi;ed a et L #efferd ta; a et$net

Fraphical Presentation of Total ,ssets T1rno'er

2010 2009 2008 0.068 0.07 0.0745 0.072 0.074 0.076 0.078 0.08 0.0825

0.0855 Tota" Assets Turno3er

0.082 0.084 0.086 0.088

Interpretation:
5otal A et 5urno)er ratio of all three *ear ho/ the in0rea ing trend in 2008> 2009 and 20109 5he trend ho/ that %ank i u ing it a et /ell %e0au e it i 0ontri%uting

:=

more to/ard

ale 9 A /e ee in *ear 2010 the 5otal A et 5urno)er i little %it in0rea e

a 0om&are to other t/o *ear 9

Na.e of ratio G Fi9e# ,ssets T1rno'er

For.1la: Fi9e# ,ssets t1rno'er H Net %ales ; Fi9e# ,ssets

%ho- in ta(le
3ear

Net sales La= Fi9e# assets L(= <i;ed A et turno)er JaM %?

!>>< 6>09*!0:9< 24>21'>=::

!>>9 ::09*:069: 2:>14'>192

!>1> <<0*:!01$* $*1086>0:>>

!.8! Ti.es

$.1> 5ime

$.!9 5ime

Eorking:
Fi9e# ,sset H 1&erating <i;ed A et Net %ale N Mark u& re)enue M 3eturn M !ntere t 4arn

Fraphical Presentation of Fi9e# ,ssets t1rno'er

:'

2010 2009 2008 0 0.5 1 1.5 2 2.52 2.5 3 3.1

3.29 4i5ed Assets turno3er

3.5

Interpretation:
5hi <i;ed A et turno)er ratio ho/ in0rea ing trend in e)er* *ear like in 2008 <i;ed A et turno)er i 29:2 time and it in0rea e in 2009 u& to ,910 time and it al o and more in0rea e a 0om&are to 2008 and 2009 u& to ,929 time 9 <i;ed a et u age i ati fa0tor* %e0au e the e are 0ontri%uting more to/ard ale 9

e) 7arket 4atios 7arket ratios are co..onl& 1se# (& the in'estors to assess the perfor.ance of a (1siness as an in'est.ent an# also the cost of iss1ing stock. These incl1#e: G +i'i#en# per share G 5arning per %hare
:8

G Price;5arning 4atio Na.e of ratio G +i'i#en# per share

For.1la: +i'i#en# per share H +i'i#en# pai# to share hol#er ; ,'erage co..on share o1tstan#ing

%ho- in ta(le
3ear +i'i#en# pai# to sharehol#er ,'g. co..on share o1tstan#ing +i'i#en# per share !>>< =>104>894 89=9': 6.<1 4s. !>>9 :>820>,,8 10'=,'0 8.*1 4s. !>1> 8>0=0>:10 1,4:4=, 8.991 4s.

Eorking
,'g. co..on share o1tstan#ingH %hare capital a.o1nt ; Par 'al1e of share 3ear ,'g. co..on share o1tstan#ing !>>< H<09690:81;1> H<969:8.1 89=9': !>>9 H1>0:6$0:>!;1> H1>:6$:>.! 10'=,'0 !>1> H1$0*8*06!<;1> H1$*8*6!.< 1,4:4=,

Fraphical Presentation of +i'i#en# per share

:9

2010 2009 2008 0 2 4 6

5.991 'i3idend !er s+are 5.41 6.81 8

Interpretation:
5he gi)en gra&h and ta%le ho/ that in *ear 2008 the +i'i#en# per share i =981 %ut it de0rea e in 2009 and again in0rea e in 20109 #i)idend &er hare ratio inform a%out the &ri0e of hare in the market al o tell the )alue of the %ank? ratio for the %ank i ri ing 2010 a 0om&ared to the 2008> 20099 hare &ri0e9 5hi

Na.e of ratio G 5arning per %hare

For.1la: 5arning per %hare H Profit ,'aila(le to sharehol#ers or Net inco.e
after ta9; No of shares o1tstan#ing

%ho- in ta(le
3ear Net inco.e after !>>< 1:4:8:90 !>>9 1':=184= !>1> 1':=,214

=0

ta9 No of shares o1tstan#ing

89=9':

10'=,'0

1,4:4=,

5arning per %hare

1:.!$ 4s.

16.$! 4s.

1$.>8 4s.

Eorking
Net Inco.e:
Net &rofit or net in0ome i the &rofit after ta; /hi0h i o%tained a mark u& re)enue E marku& e;&en e N Cro Cro &rofit

&rofit $ 7Pro)i ion for ad)an0e L Pro)i ion for in)e tment L Pro)i ion lending to

finan0ial in titution L Bad de%t /ritten off8 N Net mark$u& in0ome Net mark$u& !n0ome L <ee O 0ommi ion L #i)idend in0ome L 4;0hange in0ome L 1ther in0omeL gain on ale of e0uritie N total in0ome 5otal in0ome $ Admini trati)e e;&en e $ 1ther &ro)i ion $ 1ther 0harge L hare of in0omeN&rofit %efore ta; Profit %efore ta;$ ta; N Profit after ta9 or net inco.e No. of share 21tstan#ing H %hare capital a.o1nt ; Par 'al1e of share

Fraphical Presentation of 5arning per %hare

=1

2010 2009 2008 0 2 4 6 8 10 12

13.05 %arnin !er 6+are 16.32 17.23 14 16 18 20

Interpretation
4arning &er hare er)e a an indi0ator of a 0om&an*H &rofita%ilit*9 5he rea on of in0rea e earning &er hare i to in0rea e the net in0ome of the 0om&an* and the rea on of fallen earning &er hare i that net in0ome i de0rea ing and the out tanding hare of the 0om&an*9 After 2008 it de0rea e in 2009 and 2010

Na.e of ratio G Price;5arning 4atio

For.1la: Price 5arning 4atio H ?1rrent .arket %hare price ; 5arning per %hare

%ho- in ta(le
3ear 7arket 'al1e per share 5arning per %hares Price 5arning 4atio =2 !>>< :09,2 1'92,F !.9!>8 4s. !>>9 '49,' 1=9,2F *.88:> 4s. !>1> '=982 1,90:F 8.<<66 4s.

Eorking
%o1rce:
?1rrent .arket %hare price fro. htt&:MM///9k e90om9&kM 5P% is a'aila(le in (alance sheet.

Fraphical Presentation of 5arning per %hare

2010 2009 2008 0 1 2 2.9205 3 4 5 4.557

5.8866 .rice %arnin Ratio

Interpretation
5he Pri0e 4arning ratio i greater in 2010 a 0om&are to 2009 and 20089 Pri0e 4arning ratio doe nHt tell u the /hole tor* %* it elf9 !t i u uall* u eful to 0om&are the Pri0e 4arning ratio of one 0om&an* to other 0om&anie in the ame indu tr*

=,

1$. F1t1re Prospects of the 2rgani)ation

Am doing intern hi& in national %ank of Paki tan and o% er)ed during intern hi& and ee detail in NBP /e% ite and internet that the future of National Bank of Paki tan i )ar* %right and the e;&an ion of NBP i in0rea ing da* %* da* and during the 0al0ulation of ratio ! o% er)ed that the earning of NBP i high a 0om&are to %a e or &re)iou *ear 9 5he mo t three ratio to 0he0k the future &ro &e0t of the entit* and all three ratio ho/ Profit in0rea e e)er* *ear the e there ratio are 0urrent a et ratio> Iorking 0a&ital> Cro inno)ation and ad)an0ement in international %anking9 5he future of NBP i %right and NBP i maintaining it &o ition to et higher tandard of a0hie)ement %e0au e /hen ! 0al0ulate the ratio all re&re ent in0rea ing moment and all are &o iti)e it mean the %ank ha 0a&a%ilit* to &a* off and it de%t i al o u&er%95he a0tion taken %* 0urrent management &ro)ide a great o&&ortunit* for NBP for making it future &ro &er and 0an make NBP not le Paki tan9 than an* modern 0ommer0ialize %ank in

3atio9 But NBP i gearing 0hallenge fa0ed %* the dome ti0 %anking indu tr* due to

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1*. ?oncl1sion
! am doing m* intern hi& &rogram in the large t Co)ernment %ank of Paki tan it National Bank of Paki tan9 NBP i one of the leading %ank in %anking e0tor9 #uring m* ta* of = /eek at NBP it? m* 1 t &ra0ti0al life e;&erien0e> ! learnt a lot of ta k> man* &rofe ional kill 9 ! al o learned a%out ho/ to deal /ith &u%li09 NBP ha 12:4 nation/ide and almo t 2: %ran0he o&erating in other foreign 0ountrie in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Banglade h> and .ong @ong9 National %ank of Paki tan i one of the %igge t online %ank in Paki tan9 NBP i a go)ernment %ank that /h* it /ork a00ording to rule et %* the tate %ank of Paki tan9 NBP i al o in)ol)ed in 0ommer0ial %anking9 !t i a &art of "tate Bank of Paki tan and it i it maAor trength9 National Bank of Paki tan e ta%li h in the National Bank of Paki tan ordinan0e 19499 Am doing m* intern hi& in NBP if ! a* the future of NBP i %right it /ill not %e /rong9 ! o% er)ed during m* training in NBP the &a&er /ork of NBP i a/e ome %ut no/ a da* of te0hnolog* the te0hnolog* i an im&a0t to ur)i)e in the market and to %e in 0om&etition9 4)er* organization ha ome /eakne and during m* intern hi& in NBP <$ and take o&&ortunitie at 10 %ran0h ! lama%ad ! al o o% er)ed it 0o)er all it /eakne

=:

right time urel* it 0an %e in the /a* of &rogre &rogre

in h Allah and /ill 0ontri%ute in o)erall

of NBP at national le)el a /ell a the international le)el9

Ihen ! 0al0ulate the 3atio anal* i of National Bank of Paki tan it ho/ that NBP i a mo t ri ing %ank /ith highe t return on 0a&ital> large t market hare among t all Bank in Paki tan9 NBP 0arrie highe t 0o t to !n0ome ratio a 0om&are to all other 0ommer0ial %ank 9 But till think that there i need for de)elo&ment to o)er0ome on /eakne e in order to kee& it &o ition a an e;0ellent in %anking field9 @ee&ing in )ie/ the finan0ial ratio it i o% er)ed that Net a et of the NBP are in0rea ing da* %* da*9 5he net &rofit i al o in0rea ing /hi0h ma* attra0t the in)e tor 9 5he &rofit of national %ank of Paki tan i al o in0rea ing da* %* da* that attra0t the 0u tomer and in)e tor 9 5hi ratio of NBP i in0rea ing /hi0h ho/ large num%er of the a et are finan0ed %* the de%t /hi0h i not good9 Po iti)e /orking 0a&ital ratio ho/ that it a et are more than lia%ilitie > o the %ank i 0a&a%le to &a* it lia%ilitie 9 3atio ho/ that NBP i utilizing it A et effi0ientl*9 NBP hould full* 0on0entrate to im&ro)e it &erforman0e and tandard to meet the 0hallenge %* the e0onom* a /ell a %* the 0om&etitor and for thi &ur&o e it need to o)er0ome the &ro%lem and im&ro)e the qualit* of er)i0e &e0iall* in ad)an0e e0tion> that /ill &re)ent it from huge lo e 9

==

18. 4eco..en#ations for I.pro'e.ent I.pro'e its 5P% (eca1se its sho-s co.pan& profita(ilit&. Increase sale an# re#1ce e9penses to earn (etter profit .argin I.pro'e liA1i#it& position (& increasing its sale Increase the c1rrent assets as co.pare# to

='

c1rrent lia(ilities Proper training of staff .e.(ers Pre'ailing frien#l& en'iron.ent ?o.plaint co1nter sho1l# (e a'aila(le Eorking capital sho1l# (e positi'e .

=8

16. 4eference @ %o1rces 1se#

Ie% ite of National Bank of Paki tan ///9n%&90om9&k Annual 3e&ort of National Bank of Paki tan Ne/ &a&er #a/n Ne/ &a&er 5he Nation Ne/ &a&er Bu ine Mi 3e0order

A ia A lam 7Bran0h Manager8

Auditor? re&ort of National Bank of Paki tan "ear0hing from different /e% ite from !nternet

1:. ,nne9es
http:;;---.n(p.co..pk;P1(lications;in#e9.asp9

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http:;;---.n(p.co..pk;P1(lications;,n4eport!>><.asp9 http:;;---.n(p.co..pk;P1(lications;,n4eport!>>9.asp9 http:;;---.n(p.co..pk;P1(lications;,n4eport!>1>.asp9

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