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

Finan#e "FINI.61 $ Internship report of National /ank of Pakistan

10 1itle Page!
Name of the organization: National Ban of Pa istan Name of the !nternee: Muhammad Afaaq "tudent !#: MC090400284 "ession: 2009 $ 2011 "u%mission date of the internshi& re&ort: 0'$0'$2011 Name of the (ni)ersit*: +irtual (ni)ersit* of Pa istan

VU logo!

20 2etter of Un&ertaking

(0 S#anne& #opy of the internship #ertifi#ate "provi&e& 3y the organi4ation$

50 +e&i#ation

6t first &e&i#ating this ,ork to 6l)ighty 6226'7 ,ithout his )er#y an& sy)pathy I ,as not a3le to a##o)plish this ,ork 6l)ighty 6226' gave )e po,er an& 4

#onfi&en#e to &one )y internship an& also '829 PR8P'E1 '6:6R61 ;U'6;;6+ "Pea#e 3e upon hi)$ ,ho is a light for hu)anity0 I also &e&i#ate this ,ork to )y lovely parents an& also &e&i#ating this ,ork to our honora3le instru#tor of Fini61 ,ho help )e a lot to &o )y ,ork a##urately an& gui&e )e in )y every &iffi#ulty0

<0 6#kno,le&ge)ent
1st of all ! than s to m* Almight* A--A. /ho ga)e me &o/er and 0onfiden0e to done m* internshi& and .1-2 P31P.45 .A6A3A5 M(.AMMA# 7Pea0e %e u&on him8 /ho is a light for humanit*9

!n starting am little %it 0onfuse %e0ause its m* 1st e;&erien0e to /or in &ra0ti0al life %ut m* 1st e;&erien0e is )ar* good ! man* good &eo&les hel& me to do m* /or effe0ti)el* s&e0iall* m* instru0tor of <!N! =19 hel& me a lot /hen ! 0onfuse in some &arts of internshi& ! mail to instru0tor res&e0ted "ir /ere al/a*s read* to guide me during the re&ort /or > /hi0h ga)e me a lot of %a0 $u&9 ! also than s to m* %an em&lo*ees of the NBP /ho remained su&&orti)e and 0oo&erati)e throughout the re&ort to 0om&lete it and s&e0iall* %ran0h Manager Miss Asia Aslam9 M* some senior friends also guide me to ma e m* internshi& re&ort ! /ould li e to sa* than s to all that &eo&les9 Allah %lesses them all and gi)es su00ess all in e)er* field of life9

60 E=e#utive su))ary
! am doing m* internshi& in famous and re&uted %an of Pa istan the name of that %an is National Ban of Pa istan the re&ort is %ased on m* si; /ee s internshi& &rogram in National Ban of Pa istan9 A00ording to m* o%ser)ation during internshi& the NBP maintains an e;0ellent &osition in %an ing se0tors in Pa istan and this is %ased on the o)er all &erforman0e of National Ban of Pa istan9 5his re&ort 0ontains the detail of NBP and the de&artments /here ! /or ed during internshi& and these de&artments in0ludes A00ount 1&ening #e&artment> Bill Colle0tion #e&artment> Cash #e&artment> Credit #e&artment and 3emittan0e #e&artment9 !t also in0ludes the 3atio Anal*sis and these ratios in0lude all ratios that m* uni)ersit* required /ith 0om&lete formula> /or ing> ta%le> gra&h and inter&retation9 ! also mention m* /or e;&erien0e during internshi& in different se0tors9 ! also dis0uss in m* re&ort the e;e0uti)e summar* of NBP and 3e0ommendations for !m&ro)ement and the sour0es that ! used to ma e this re&ort9 ! ha)e learned and informed a%out different

as&e0ts s&e0iall* a%out %an ing se0tor> it?s m* 1st /or ing e;&erien0e so it /ill hel& me /hile ! /ill %e &rofessional9 NBP has 12:4 nation/ide and almost 2: %ran0hes o&erating in other foreign 0ountries in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Bangladesh> and .ong @ong9 5he o%Ae0ti)e of this !nternshi& /as to e;&lore the issues relating to <inan0e and to find out &ro%lems regarding the theoreti0al 0on0e&ts /ith &ra0ti0al e;&erien0e /or ing in an organization during the internshi& and stud* the s*stem of National Ban of Pa istan9 A00ording to m* no/ledge there is mu0h &ossi%le &erfe0tions> /hi0h /e 0an ma e &ositi)e 0hanges in the s*stem of NBP in 0oming *ears9 !n this m* NBP re&ort ! also tal a%out the /a* of in)estment> rates of in)estment> all t*&es of finan0ing and loans ser)i0es the National Ban of Pa istan &ro)ides9 5he &ro%lems of %ran0h /here ! am doing internshi& <$10 mar az %ran0h are also dis0ussed9

>0 1a3le of #ontent

2esson No0 1itle ? 1opi#

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1itle page
Na)e of the organi4ation Na)e of the Internee7 Stu&ent I+ an& session Su3)ission &ate of the internship report Na)e of the University VU logo

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2etter of Un&ertaking S#anne& #opy of the internship +e&i#ation 6#kno,le&ge)ent E=e#utive su))ary 1a3le of #ontents /rief intro&u#tion of the organi4ation*s 3usiness se#tor 8vervie, of the organi4ation
/rief history 8rgani4ational 'ierar#hy #hart /usiness volu)e "1otal nu)3er of sto#k7 shares7 3on&s? #o))o&ities7 future #ontra#ts planne& for a parti#ular

Page No0 1 1 1 1 1 1 2 ( 5 < 6 .10 11.21 11.1( 15.1< 16

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perio& et#$0 Pro&u#t lines "2ist #o)plete range of pro&u#ts? servi#es of the organi4ation$ %o)petitors /rief Intro&u#tion of all the &epart)ents %o))ents on the organi4ational stru#ture

1> 1@ 1 .20 21 22 1> 1> 1> 2( 2( 2< 26 2> 2@ 2 2

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1 2n& (r& 5th <th
st

Plan of your internship progra)

6 3rief intro&u#tion of the 3ran#h ,here you &i& your internship Starting an& en&ing &ates of your internship Na)es of the &epart)ents in ,hi#h you got training an& the &uration of your training

1raining progra)
6##ount 8pening +epart)ent /ill %olle#tion +epart)ent %ash +epart)ent %re&it +epart)ent Re)ittan#e +epart)ent

120
a$ 3$ #$

Ratio 6nalysis
2iAui&ity Ratios 2iAui&ity ratios )easure a fir)*s a3ility to )eet its #urrent o3ligations0 %urrent Ratio 6#i& 1est Ratio Borking #apital 2everage Ratios 2everage ratios )easure the &egree of prote#tion of suppliers of long ter) fun&s0 1i)es Interest Earne& +e3t Ratio +e3t ? EAuity Ratio +e3t to 1angi3le Net ,orth Ratio 1otal %apitali4ation Ratio Profita3ility Ratios Profita3ility ratios )easure the earning a3ility of a fir)0 Net Profit ;argin Return on 6ssets +uPont Return on 6ssets 8perating In#o)e ;argin

2 (1 (( (<

(< (> (@ 50 51 5(

5( 5< 5> 5

 &$

e$

Return on 8perating 6ssets Return on 1otal EAuity Cross Profit ;argin 6#tivity Ratios 6#tivity ratios )easure a fir)Ds a3ility to #onvert &ifferent a##ounts ,ithin their 3alan#e sheets into #ash or sales0 1otal 6ssets 1urnover Fi=e& 6ssets 1urnover ;arket Ratios ;arket ratios are #o))only use& 3y the investors to assess the perfor)an#e of a 3usiness as an invest)ent an& also the #ost of issuing sto#k0 +ivi&en& per share Earning per Share Pri#e?Earning Ratio

<0 <2 <5 <<

<6 <> <

1(0 150 1<0 160 1>0

Future Prospe#ts of the 8rgani4ation %on#lusion Re#o))en&ations for I)prove)ent Referen#e - Sour#es use& 6nne=es

< 61 6( 6< 66.6> 6@.>0 >1 >1

@0 /rief intro&u#tion of the organi4ation*s 3usiness se#tor

Am doing m* internshi& in NBP f$10 %ran0h mar az !slama%ad no/ ! /ill dis0uss the %rief introdu0tion of national Ban of Pa istan in %usiness se0tor 5he national %an of Pa istan /as esta%lished in 9 th No)em%er 1949 under the ordinan0e B!B9 5he NBP 0ommen0ed its o&erations from 20th No)em%er 19499 5he Ban /as in0or&orated under the National Ban of Pa istan 1rdinan0e 1949 and is listed there Pa istani sto0 e;0hanges9 5he %an 0ontrols treasur* dealings for the Co)ernment of Pa istan as a re&resentati)e to the "tate Ban of Pa istan9 NBP offers a 0ommer0ial %an ing and interrelated ser)i0es in Pa istan as /ell as out side of Pa istan9 5he %usiness se0tor of NBP is %an ing se0tor and the %an s &la*s a )ital role in an e0onom* of 0ountr* NBP also &la*ed an im&ortant role NBP also &ro)ide %an ing or finan0ial ser)i0es in

Pa istan %an &la*s a maAor &art in e0onom* no/ a da*s the 0urrent e0onomi0s 0risis in united stares and 4uro&e as /ell as Pa istan as /e see da* %* da* do/n sizing and is %e0ause the ongoing /ea ness of maAor %an and the result of all this is 0redit and 0a&ital 0rush so /e 0an sa* its &ro)e from histor* that the %an ing se0tor is &la*s a )ar* im&ortant role in national and glo%al e0onom*9 National %an of Pa istan &ro)ides to its 0ustomers the follo/ing %enefits sa)ing a00ounts> home finan0ing> &ersonal loans> A5M and de%it 0ards> finan0ing fa0ilit* for sto0 in)estors> !nternet %ased home remittan0e ser)i0e> 0ash against gold> and &ersonal a00ident insuran0e these %enefits is )ar* useful for 0ustomers9 !n %et/een 2002 to 200' the a00elerated e0onom* gro/th of Pa istan /as under&inned %* a strong %an ing se0tor the %an ing industr* assets is a%o)e D=0 its &rofit remain high and its NP-" are lo/9 Pa istan is !slami0 0ountr* and the national %an of Pa istan offers is !slami0 %an ing ser)i0es these ser)i0es in0lude de&osit s0hemes> li e 0urrent de&osit s0heme and &rofit and loss sharing de&osit s0heme and also finan0ing fa0ilities and also &ro)ided letters of 0redit fa0ilit*> issuan0e of %an drafts and &a* orders> handling of remittan0es> go)ernment 0olle0tions> 0olle0tion of e;&ort %ills and lo0al %ills> and utilit* %ills 0olle0tion ser)i0es9 !t also &ro)ided international %an ing trade that &ro)ide ser)i0es 0om&rise letters of 0redit> trade finan0ing> international &a*ments and 0olle0tion ser)i0es> stru0tured trade finan0e> do0ument &resentation and &a*ment ser)i0es> &reE and &ostE shi&ment finan0ing> %an EtoE%an reim%ursements> do0umentar* 0redits> im&ort finan0e> shi&&ing guarantees> and 0ash management solutions9 NBP is go)ernment %an so &eo&les trust to NBP is high as 0om&are other %an s and NBP &ro)ides trustee ser)i0es to national in)estment trust> long$term 0redit fund> and endo/ment fund for student loans s0heme9

10

0 8vervie, of the organi4ation

a0 /rief history
'istory! NBP /as esta%lished under the National Ban of Pa istan 1rdinan0e in No)em%er 8 1949 in Pa istan and / a s 1 0 0 F g o ) e r n m e n t o / n e d 9 5he need for the esta%lishment 0ame due to the reason of ne/l* 0ountr* /ith e0onomi0s 0risis9 !n Gul* 1948 to 0arr* on the res&onsi%ilities of issuing the 0urren0* and most im&ortantl* 0ontrolling the flo/ of mone* in side the 0ountr*9 Role! 5he "&e0ial 3ole of National Ban of Pa istan is o00u&ies a unique &osition in the finan0ial se0tor of Pa istan9 !t also a0ts as an agent of the Central Ban /here)er the "tate Ban does not ha)e its o/n Bran0h9 !t also underta es Co)ernment 5reasur* o&erations9

11

8,nership! NBP is 100F o/ned %* the Co)ernment of Pa istan9 /ran#h Net,ork! NBP has an e;tensi)e domesti0 %ran0h net/or of o)er 1:00 %ran0hes lo0ated all o)er Pa istan9 5he Ban also has a &resen0e in 24 international lo0ations in0luding the ("A> (nited @ingdom> 4uro&e and the <ar 4ast9 +eposits of National 3ank of Pakistan! NBP holds 249=F share of time and demand de&osits in the 0ountr*9 -o0al 0urren0* de&osits 0om&rise ='F of %an Hs total de&osits /hile foreign 0urren0* de&osits a00ount for the rest9 'ea& offi#e an& /ran#hes! .ead offi0e of national %an is in @ara0hi /ith their 14,1 %ran0hes lo0al and 24 %ran0hes internationall*9 Provin#ial 'ea&Auarters! "indh 0=> Balu0histan 02> PunAa% 14> NI<P 0:> Azad @ashmir 02> total 299 6,ar&e&! National %an of Pa istan /as gi)en a/arded of %est %an of the *ear in 2001> 2002> and 2004 %* the %an er a &u%li0ation of finan0ial times -ondon9 !n 200: the national %an of Pa istan is also gi)en %est %an of the *ear %* the %an ers %* glo%al finan0e magazine9 National Ban has earned re0ognition and numerous a/ards internationall*9 !t has %een the re0i&ient of 5he Ban of the 2ear 2001> 2002> 2004 and 200: A/ard %* 5he Ban er Magazine> the Best <oreign 4;0hange Ban EE Pa istan for 2004> 200:> 200= and 200'> Clo%al <inan0e> Best 4merging Mar et Ban from Pa istan for the *ear 200:> Clo%al <inan0e> @isan 5ime A/ards E 200: for NBPHs ser)i0es in the agri0ulture field9 !t is listed amongst the 3egionHs largest %an s and also amongst the largest %an s in "outh Asia 200:> 5he Asian Ban er9 !t has also %een &resented a 3e0ognition A/ard EE 2004 for ha)ing a Cender "ensiti)e Management %* I4BC1P AA".A %esides other a/ards9 Pre#ise Su))ary of National /ank of Pakistan year 3y year 5he &re0ise summar* of National Ban of Pa istan regarding its 0ountr*/ide and o)erseas o&erations is as fallo/s: !n the *ear 1949 National Ban of Pa istan /as esta%lished under the National Ban of Pa istan 1rdinan0e 1949 and /as 100F go)t9$o/ned9 !n the *ear 19:0 NBP esta%lished a %ran0h in Geddah> "audi Ara%ia9 5he Ban in 19:0 had one su%sidiar* J5he Ban of Baha/al&ur? on #e0em%er4>

12

!n the *ear 194' %* the former Baha/al&ur "tate !n the *ear 19:: B* this time NBP had %ran0hes in -ondon and Cal0utta9 !n the *ear 19:' NBP esta%lished a %ran0h in Baghdad> !raq9 !n the *ear 19=2 NBP esta%lished a %ran0h in #ar$es$"alaam> 5angan*i a9 !n the *ear 19=4 5he !raqi go)ernment nationalized NBPHs Baghdad %ran0h9 !n the *ear 19=: 5he !ndian go)ernment seized the Cal0utta %ran0h on the out%rea of hostilities %et/een !ndia and Pa istan9 !n the *ear 19=' 5he 5anzanian go)ernment nationalized the #ar$4s$"alaam %ran0h9 !n the *ear 19'1 NBP a0quired Ban of ChinaHs t/o %ran0hes> one in @ara0hi and one at Chittagong9 At se&aration of 4ast Pa istan NBP lost its %ran0hes there9 NBP merged /ith 4astern Mer0antile Ban and /ith 4astern Ban Cor&oration9 !n the *ear 19'4 the go)ernment of Pa istan nationalized NBP9 As &art of the 0on0omitant 0onsolidation of the %an ing se0tor> NBP a0quired Ban of Baha/al&ur 7est9 194'89 !n the *ear 19'' NBP o&ened an offshore %rain Cairo9 !n the *ear 1994 NBP amalgamated Mehran Ban 7est9 199189 !n the *ear 199' NBPHs %ran0h in Ashga%at> 5ur menistan 0ommen0ed o&erations9 !n the *ear 2000 NBP o&ened a re&resentati)e offi0e in Almat*> @aza hstan9 !n the *ear 2001 "tate Ban of Pa istan and Ban of 4ngland agree to allo/ onl* 2 Pa istani %an s to o&erate in the (@9 NBP and (nited Ban agreed to merge their o&erations to form Pa istan !nternational Ban > of /hi0h NBP /ould o/n 4:F and (nited Ban ::F9 !n the *ear 200, NBP re0ei)ed &ermission to o&en a %ran0h in Afghanistan9 !n the *ear 200: NBP 0losed its offshore %ran0h in Cairo /hi0h o&ened in 19''9 1,

30 8rgani4ational 'ierar#hy #hart

"*ed Ali 3aza Chairman NBP Board of #ire0tors Kamar .ussain President NBP
14

M39 5ariq @irmni #ire0tor Mrs9 .ani*a "hahid Naseem #ire0tor Ms Nazrat Bsahir #ire0tor Mr9 4 hlaq Ahmed "e0retar* Board of #ire0tors 8rgani4ational 'ierar#hy %hart at N/P 'ea& 8ffi#e Eara#hi

8rgani4ation %hart of N/P

1:

#0 /usiness volu)e

1=

In ;illions
+es#ription Profit 3efore ta= Profit after ta= Sharehol&er *s eAuity 6&van#es F net 1otal 6ssets +eposits Invest)ents Earnings per share 2006 2=>,11 1'>022 ,:,>04: ,1=>110 =,:>1,, :01>='2 1,9>94' 129=: 200> 28>0=1 19>0,4 =9>2'1 ,40>,19 '=2>194 :91>90' 211>14= 1491: 200@ 2,>001 1:>4:9 81>,=' 412>98' 81'>':8 =24>9,9 1'0>822 11949 200 21>,00 1'>:=2 94>142 4':>24, 944>:8, '2'>4=: 21'>=4, 1,90: 2010 2>4>41: 1'>:=, 10,>'=2 4''>:0' 1>0,:>02: 8,2>1:2 ,01>,24 1,90:

&0 Pro&u#t lines

5he &rodu0t lines is 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-#

Servi#es
!slami0 Ban ing "tudent -oan "0heme #emand #rafts7##8 4quit* !n)estment Commer0ial <inan0e 5rade <inan0e !nternational <inan0e .ome <inan0e <oreign Curren0* A00ount "hort 5erm !n)estment N!#A7 National !n0ome #ail* A00ount8 <oreign remittan0e 5ra)elers Cheques "/ift "*stem -etter of Credit Pa* 1rder 7P18 Mail 5ransfer 7M58

e0 %o)petitors
No/ a da* in this /orld of 0om&etition the NBP is fa0ing mu0h 0om&etition9 5he 0om&etitors list of NBP is )er* large as there are man* &ri)ate and 0ommer0ial %an s o&erating in the 0ountr*9 Com&etitors of the NBP /hi0h are gi)en %elo/

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

"audi Pa Ban -imited Atlas Ban -imited "!-@BAN@ -imited (nited Ban -imited Allied Ban -imited As ari Commer0ial Ban -imited Ban Al$.a%i% -imited Ban Al$<alah -imited9 "tandard Chartered Ban -imited <irst Iomen Ban 5he Ban of @h*%er Ban of PunAa% <a*sal Ban -imited Atlas Ban -imited Ban Alfalah -imited "oneri Ban -imited As ari Ban -imited

f0 /rief Intro&u#tion of all the &epart)ents

5here are man* de&artments of National Ban of Pa istan ! /ill /rite the follo/ing main de&artments of National Ban of Pa istan <$10 Mar az %ran0h and /here ! got training as internee are gi)en %elo/: 1st A00ount 1&ening #e&artment 2nd Bill Colle0tion #e&artment ,rd Cash #e&artment 4th Credit #e&artment

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:th 3emittan0e #e&artment ! alread* des0ri%e in detail of these entire de&artment in m* internshi& re&ort 1ne %* one ! /ill summarize or o)er )ie/ all these again9

1st 6##ount 8pening +epart)ent!

!n m* 1st 2 /ee s of internshi& ! /or as an internee in a00ount o&ening de&artment in NBP9 !t?s a maAor de&artment of NBP the %asi0 &ur&ose of A00ount 1&ening #e&artment the relationshi& %et/een %an er$0ustomer9 A00ount o&ening de&artment &erforms the dut* of o&ening a00ounts and issues 0he0 %oo s to 0lients9 A &erson /ho requests to o&en an a00ount /ith the %an has to fill an a00ount o&ening form o%tained from an* %ran0h of National Ban of Pa istan9 1ypes of a##ounts that are opene& ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount is o&ened9 10 P2S 6##ount or P2S Saving 6##ount 20 %urrent 6##ount (0 Fi=e& +eposit 6##ount

2n& /ill %olle#tion +epart)ent!

! also /or in the %ill 0olle0tion de&artment in NBP during m* internshi&9 5he %asi0 &ur&ose of %ill 0olle0tion de&artment is 0olle0ted utilit* %ills from 0ustomers that he &a*s at end of e)er* month 5hese %ills in0lude Iater %ills Cas %ills 4le0tri0it* %ills 5ele&hone %ills

(r& %ash +epart)ent!

! also /or in 0ash de&artments during internshi& in NBP9 Cash de&art in )ar* sensiti)e de&artment o e)er* %an as /ell as National Ban of Pa istan No %od* is allo/ed freel* li e other de&artment this de&artment all de&end on 0ash a se0urit* guard is also standing for safe from theft and also sensiti)e de&artment some times 0ustomer &a*s frauds are made in this de&artment so e;tra 0are needed in this de&artment9

5th %re&it +epart)ent!

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!n m* internshi& &rogram in NBP ! also /or in 0redit de&artment9 5he %asi0 &ur&ose of this de&artment id to 0olle0t s&are> e;tra or sur&lus mone* or 0urren0* from &eo&les or 0ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this mone* at high rates to get more and more &rofit9 No/ a da*s NBP gi)es a )ar* lo/ amount to 0ustomer %e0ause in Pa istan there is insta%ilit* and da* %* da* the in)estor go out from Pa istan %e0ause of in se0urit* finan0ial 0rises is also %ig 0ause of it so the loan ratio is )ar* lo/ do/n da* %* da* /ith the &assage of time9

<th Re)ittan#e +epart)ent!

<inall* in m* last /ee of internshi& as an internee in NBP ! /or in 3emittan0e #e&artment9 5he remittan0e de&artment transfers the mone* from domesti0 to international le)el9 A00ording to m* learning there are t/o 0ategories of remittan0e de&artment 1st one is domesti0 or lo0al remittan0e de&artment and the 2 nd one is foreign remittan0e de&artment9 !n lo0al remittan0e the transfer mone* /ith in national or domesti0 %oundaries and in foreign transfer mone* out side from national or international %oundaries !n m* internshi& &rogram the manager told me the main fun0tions of 3emittan0e #e&artment these main or im&ortant fun0tions ta es &la0es in the follo/ing /a*s ! o%ser)ed these are Closing and s0rolling of go)ernment 0olle0tions> issuing of &a*ment order> issuing of demand draft> issuing of 0all de&osit> issuing of Mail transfer and issuing of 0all de&osit9 !n NBP remittan0e ta es &la0es in the follo/ing /a*s9 5hese /a*s are gi)en %elo/9 1st 1elegraphi# ? ;ail 1ransfers an& its easy an& fastest ,ay 2n& one is +e)an& +raft ? Pay 8r&ers

g0 %o))ents on the organi4ational stru#ture

! understand during m* internshi& &rogram the 1rganizational "tru0ture NBP is 0entralized %ut need some 0hanges /ith the &assage of time %e0ause in this /orld da* %* da* te0hnolog* 0hanges and its ne0essar* to 0hange the 1rganizational "tru0ture time %* time and ! also o%ser)ed the NBP is the oldest %an of in Pa istan and in last =2 *ears a lot of 0hanges in NBP 1rganizational "tru0ture %ut ! o%ser)ed the 1rganizational

21

"tru0ture is not &rofessionall* de)elo&ed and im&lemented9 !n NBP <$10 Mar az Bran0h /here ! /or as internee in that de&artment all em&lo*ees in different de&artment /or &ro&erl* and here 1rganizational "tru0ture %ut also need some 0hanges9

100 Plan of ;y internship progra)

Intro&u#tion of 3ran#h Name of %ran0h: National Ban of Pa istan <$10 Mar az Bran0h Cit*: !slama%ad Bran0h Code: 19,, Bran0h manager: Miss Asia Aslam 1&erating manager: Mr9 Ali Phone Num%er: L92$0:1$9218',4

22

! did m* internshi& or training from National %an of Pa istan <$10M4 Mar az !slama%ad and %ran0h 0ode is 19,,9(nder the %ran0h manager Miss Asia Aslam9 !n this %ran0h of national %an the %ran0h manager is Miss Asia Aslam and Mr9 Ali is o&erating manager %oth are su&erior /or ing and )er* fair /ith their Ao%9 Ihen ! start m* internshi& ! fa0e man* diffi0ulties %e0ause its m* 1st e;&erien0e to do training or internshi& in an* /here so ! don?t ha)e e;&erien0e &ra0ti0al /or %efore %ut here 0oo&erati)e management s&e0iall* miss Asia Aslam Bran0h manager hel& me for m* this 1 st to 0om&lete m* tas s effi0ientl* and ! o%ser)ed the other management mem%ers or staff is also )ar* 0oo&erati)e /ho also hel& me in a friendl* manners9 !n start am little %it 0onfuse %ut after the o%ser)ed the 0oo&eration of staff ! enAo* m* internshi& ! also a&&re0iate and than s all management /ho hel& me to 0om&lete m* tas s in good manners9 +uration of ;y training or Internship Progra) 5he starting date of m* !nternshi& Program is ;ay 7 2011 5he ending date of m* !nternshi& Program is Gune 227 2011 Na)e of the +epart)ent in ,hi#h I ,orke& in )y internship0 Na)e of the +epart)ent A00ount 1&ening #e&artment Bill Colle0tion #e&artment Cash #e&artment 3emittan0e #e&artment9 +uration 2 Beeks 1 Beek 1 Beek 1 Beek

110 1raining progra)

M* training or internshi& &rogram from National Ban of Pa istan <$10 Mar az Bran0h !slama%ad ! also mention the de&artments /here ! /or as internee that is gi)en %elo/9

1st 6##ount 8pening +epart)ent 2n& /ill %olle#tion +epart)ent (r& %ash +epart)ent 5th %re&it +epart)ent

2,

<th Re)ittan#e +epart)ent

1ne B* one ! /ill des0ri%e in detail of all m* training &rogram de&artments

1st 6##ount 8pening +epart)ent

5he a00ount o&ening de&artment is a first de&artment /here ! learned and s&ent m* internshi& ma;imum &eriods 2 /ee s as 0om&ares to other de&artments9 !n m* )ar* 1 st da* ! am little %it 0onfused to start and learned a%out de&artment %e0ause its m* 1st e;&erien0e &ra0ti0all* %ut the 0oo&erati)e staff and %ran0h manager hel& me to understand all &ro0edure no/ ! o%ser)ed ho/ the em&lo*ee /or in this de&artment and /hat is the requirements to o&en the a00ount and /hat is the rules and &ro0edure to follo/ the 0ustomer9 !n this de&artment requires some %asi0 requirements for o&en an a00ount of 0ustomer the 0ustomer must ha)e the referen0e of an* residen0e of Pa istan /ho has alread* a00ount holder of National Ban of Pa istan and /hen 0ustomer gi)es referen0e of some ones /ho has a00ount in NBP the %an 0onfirms it /ith NA#3A9 After , or 4 da*s ! learned man* things a%out o&ening a00ount and rules and &ro0edures and also the requirements li e /hat is the title of a00ount> address of the 0ustomer> re0ent !# 0ard num%er> National ta; num%er> P5C- and Mo%ile num%er amount de&osit> signature> -a/ must qualif* the 0ustomer> Age of maAorit* and must %e of sound mind 5han ! learned and o&ened a a00ount of 0ustomer under su&er)ision of staff and these &ro0edure must %e follo/ed the 0ustomer 0ome to %an and meet the manager a%out a00ount o&ening &ro0edure than manager guide him or her a%out the a00ount he or she /ants to o&en in the %an than manager guide me and ! follo/ the rules no/ gi)e to 0ustomer a00ount o&ening form along /ith do0ument li e signature 0ard and Pa*$in$sli&9 5han the 0ustomer fill the a00ount o&ening from if he has an* diffi0ult* than management or a00ount o&ening offi0er guide him or her and /hen 0ustomer fill are form this form sent to manager for a&&ro)al than the 0on0erned offi0er gi)es ne/ a00ount num%er and guide to de&osit initial de&osit in 0ash 0ounter9 And 0he0 %oo gi)es to 0ustomer a00ording to 0ustomer need or requirement %e0ause some 0he0 %oo s has 2:> :0 and more it?s de&end on 0ustomer requirement9 Ihen ! o&ened some a00ounts than ! no/

24

the &ro0edure and after this it?s )ar* eas* for me %e0ause ! no/ no/ all &ro0edures to o&en a a00ounts and ! o&ened some a00ounts 1ypes of a##ounts that are opene& ! learned in m* training in a00ount o&ening de&artment the follo/ing a00ount is o&ened9 10 P2S 6##ount or P2S Saving 6##ount 20 %urrent 6##ount (0 Fi=e& +eposit 6##ount 5he details of these a00ounts are gi)en %elo/ one %* one9

10 P2S 6##ount or P2S Saving 6##ount

1st ! /ould li e to dis0uss the P-" a00ount or P-" sa)ing a00ount that ! learned from manager it is interest free a00ount mostl* the lo/er or middle in0ome le)el or small %usiness man> Allam or Moulana or &eo&le /ho don?t li e interest li e usuall* ma e su0h de&osit in this a00ount the transa0tion9 !n this a00ount the transa0tion is not e)er* da* or dail*9 <unds 0an normall* de&osited through &a* order> 0ash> 0he0 et09

20 %urrent 6##ount
2nd ! li e to dis0uss the 0urrent a00ount that ! learned from manager this a00ount or 0urrent a00ount it?s de&end on dail* %ases normall* through 0heque> A5M> Pa* order et0 dra/n on the %an and these de&osit stand the 0urrent lia%ilit* of the %an 9 5he %an fund of his hand and 0ustomer normall* use this a00ount mostl* no/ a da*s through A5M %e0ause its )ar* eas* and ad)an0ed method9 And there is no limit for de&osit9 ee&

(0 Fi=e& +eposit 6##ount

,rd ! /ould li e to dis0uss the fi;ed de&osit a00ount ! learned from manager that this a00ount normall* o&ened and high fa0ult* or e;tra ordinar* &eo&le or %usiness man for a long &eriod of time and this t*&e of a00ount is less use as 0om&are to other a00ount9 !n this a00ount the 0ustomer in)est in different se0tor for a long &eriod of time /here his or 2:

her mone* is sa)ed from theft and also /ith higher return9 5he other a00ount ! o&ened %e0ause these are dail* use a00ounts and normal or middle 0lass &eo&les use %ut this fi;es a00ount ! don?t o&ened %e0ause in m* in m* &eriod of internshi& there in onl* 1 or 2 &eo&les /ho o&ened this a00ount ! learned %ut not a00urate so ! got more information from the manager of the %an 9

2n& /ill %olle#tion +epart)ent

!n m* internshi& &rogram ! also /or ed in Bill Colle0tion de&artment in one /ee 9 !n 1st da* in %ill 0olle0tion de&artment 1 get information from manager a%out the fun0tion> rules and &ro0edure in)ol)e in %ill 0olle0tion de&artment after get information from manager ! see or o%ser)ed %ill 0olle0tion de&artment 0olle0ts different utilit* %ills /hi0h &eo&les &a* e)er* months9 5hese %ills in0lude

Bater 3ills Cas 3ills Ele#tri#ity 3ills 1elephone 3ills

! 0olle0t some %ills a00ording to instru0tion that manager gi)es me a%out %ill 0olle0tion de&artment and in %ill 0olle0tion de&artment m* dut* is /hen 0olle0t %ill is must see the due date and /hat?s the amount 0olle0t in due date and these are /ritten in e)er* %ill and after date %e0ause after date e;tra amount &aid or late &a*ment 0harges &aid %* the 0ustomer if %ill not &aid /ithin due date9 Also mention in %ill manuall* if 0ustomer gi)es %ig note li e note of 3" :000 and %ill id 10:0 than in %ill /ritten manuall* :000$10:0 N ,9:0 it means 0ustomer gi)e :000 note and %ill amount is 10:0 /e dedu0t from :000 and /e gi)es ,9:0 the remaining amount to 0ustomer9 5he amount re0ei)ed li e in due date amount re0ei)ed 0ir0le the re0ei)ed amount /ithin due date and if &a*ment id after due date 0ir0le after date and in after date late &a*ment 0harges in0luded and 0ir0le and 0olle0t mone* and than %an stam& and also sigh on it is its guarantee that this means f$ 10 mar az !slama%ad %ran0h re0ei)ed this %ill9 5he %an also 0harges 0ommission in ea0h %ill that is re)enue of the %an and also for go)ernment of Pa istan9 At the end of

2=

the da* all amount 0ounts 0ount that re0ei)ed from from re0ei)ed against %ill 0olle0tion from 0ustomers and gi)es %* the rele)ant %ill 0olle0tion de&artment and %ill 0olle0tion de&artment sends mail to the head offi0e9

(r& %ash +epart)ent

!n duration of m* internshi& in NBP as internee ! /or in 0ash de&artment fro 1 /ee 9 !n 0ash de&artment 1st ! tr* to understand /or ing &ro0edure in this de&artment ! also o%ser)ed that 0ash de&artment is the most im&ortant se0tion in the %an 9 Cash de&artment &erform the fun0tion of %an &a*ment and re0ei&t> go)ernment re0ei&t and &a*ment and 0olle0tion of utilit* %ills 5he 0ash de&artment is )ar* im&ortant and sensiti)e %e0ause in this de&artment no %od* is allo/ed freel* li e other de&artment this de&artment all de&end on 0ash a se0urit* guard is also standing for safe from theft and also sensiti)e de&artment some times 0ustomer &a*s frauds are made in this de&artment so e;tra 0are needed in this de&artment9 And if 0losing the %alan0e is not mat0h than the 0ashier must mat0h it %efore lea)e this de&artment some times hours ta es to mat0h 0ash in this de&artment if 0ash not mat0h than 0ashier &a* /ith its o/n &a* or /ith o/n re0ourses "o 0ash de&artment is )ar* sensiti)e de&artment mostl* &eo&le 0ome for the &ur&ose of 0ash in this de&artment /ith dra/n and de&osit if an* a00ount holder 0omes to dra/ the amount it must % 0he0 ed the total amount on 0heque> date> signature of the a00ount holder> and then he gets &a*ment form the 0ash 0ounter from the 0ashier and some a00ount holder 0omes for the &ur&ose of de&osit the mone* in 0ash de&artment9

5th %re&it +epart)ent

As an internee ! /or and o%ser)ed in 0redit de&artment for the duration of 1 /ee in National Ban of Pa istan <$10 Mar az Bran0h !slama%ad9 5he %asi0 &ur&ose of this de&artment id to 0olle0t s&are> e;tra or sur&lus mone* or 0urren0* from &eo&les or 0ustomers at )ar* lo/ rate and gi)es or &ro)ided lend this mone* at high rates to get more and more &rofit9 2'

A00ording to m* o%ser)ation and /or as internee in NBP during m* internshi& ! o%ser)e that the %asi0 &ur&ose of 0redit de&artment is &ro)ide load to load see ers9 5hese &eo&les get loan from %an and fulfill our requirements and %an 0harges interest against9 ! also o%ser)e no/ a da*s of te0hnolog* e)er* %an ado&t this method to get &rofit9 ! o%ser)ed /hen national %an of Pa istan <$10 %ran0h !slama%ad /hen NBP &ro)ide or gi)es to some one some %asi0 information 0olle0t %* the %an to redu0e fraud %e0ause no/ a da*s some fraud &eo&les gets illegall* loan from %an and 0ant return to %an some fraud &eo&les /rite /rong address and some are going out side of 0ountr* and that?s a %ig loss of %an so %an no/ a da*s %an 0onfirm it /ith the 0ustomers near &oli0e station a%out the re&utation of 0ustomer and NBP required some %asi0 information and 0riteria %efore gi)es loan to &eo&les some %asi0 information that %an s gets li e 0ustomer name> National !dentit* Card> 5he required do0uments 0he0 ed is it in original from or not9 No/ a da*s NBP gi)es a )ar* lo/ amount to 0ustomer %e0ause in Pa istan there is insta%ilit* and da* %* da* the in)estor go out from Pa istan %e0ause of in se0urit* finan0ial 0rises is also %ig 0ause of it so the loan ratio is )ar* lo/ do/n da* %* da* /ith the &assage of time9

<th Re)ittan#e +epart)ent

!n m* internshi& &rogram and also last /ee 3emittan0e de&artment in one /ee of m* internshi& ! also /or ed in 9! o%ser)ed or learned that main &ur&ose of

3emittan0e de&artment is to mo)e mone* from one &la0e to another &la0e9 5he remittan0e de&artment transfers the mone* from domesti0 to international le)el9 A00ording to m* learning there are t/o 0ategories of remittan0e de&artment 1 st one is domesti0 or lo0al remittan0e de&artment and the 2nd one is foreign remittan0e de&artment9 !n lo0al remittan0e the transfer mone* /ith in national or domesti0 %oundaries and in foreign transfer mone* out side from national or international %oundaries !n m*

28

internshi& &rogram the manager told me the main fun0tions of 3emittan0e #e&artment these main or im&ortant fun0tions ta es &la0es in the follo/ing /a*s ! o%ser)ed these are Closing and s0rolling of go)ernment 0olle0tions> issuing of &a*ment order> issuing of demand draft> issuing of 0all de&osit> issuing of Mail transfer and issuing of 0all de&osit9 Ihen ! /or in this de&artment ! also o%ser)ed the im&ortant &arti0ulars of demand draft filled> Name of the %ran0h on /hi0h draft is dra/n> Address of the a&&li0ant> signature of the a&&li0ant> e;0hange rates of the %an > 5otal amount in figure and also in /ords> name of the &erson /ho re0ei)e the mone*9 (nder the su&er)ision manager ! fill some demand draft that gi)es me some useful information a%out this de&artment and ! also /ant to get more and more information a%out this de&artment and manager hel& me a lot9 !n NBP remittan0e ta es &la0es in the follo/ing /a*s9 5hese /a*s are gi)en %elo/9 1st 5elegra&hi0 M Mail 5ransfers and its eas* and fastest /a* and 2 nd one is #emand #raft M Pa* 1rders Ban is res&onsi%le for remittan0e from one %an to another %an in 0ase 5his is m* last /ee on internshi& in national %an of Pa istan and /ord in remittan0e de&artment ! /or hard also 0oo&erati)e staff and manager reall* hel& me for this am than ful to all management and staff of National Ban of Pa istan <$10 %ran0h and also than ful fro %an %ran0h manager Miss Asia Aslam she hel& me lot in m* all !nternshi&

120 Ratio 6nalysis

a$ 2iAui&ity Ratios 2iAui&ity ratios )easure a fir)*s a3ility to )eet its #urrent o3ligations0 1hese in#lu&e! H %urrent Ratio

29

H 6#i& 1est Ratio H Borking #apital

Na)e of the ratio

%urrent ratio

F8R;U226 8F %URREN1 R61I8 1he for)ula of #urrent ratio is given 3elo, Bith the help of for)ula ,e #al#ulate or fin& #urrent ratio

%urrent Ratio I %urrent 6ssets ? %urrent 2ia3ilities

!t means /e add all 0urrent assets after add all 0urrent assets /e add all 0urrent lia%ilities and than di)ide 0urrent ratio /ith 0urrent lia%ilities As /e sho/n in gi)en %elo/

Sho, in ta3le
24A3"
Current assets Current lia%ilities %urrent Ratio

200@
:84>9''>140 =82>90:>4=1 00@6 ! 1

200
=4:>0=4>1=: '2:>29,>'20 00@ ! 1

2010
=9,>4=,>980 8='>=2=>,=' 00@0 ! 1

Borking! Bhi#h short ter) a&van#es an& invest)entsJ 8nly fi=e& &eposits ,ill not 3e #onsi&ere& here 'el& for tra&ing an& availa3le for sale ,ill 3e #onsi&ere& as #urrent

,0

%urrent asset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estment L "hort term Ad)an0es L 1ther asset 71nl* "hort 5erm8 After adding all 0urrent assets a00ording to gi)en format the 0urrent assets of 2008 N :84>9''>140 and 2009 N =4:>0=4>1=: and 2010 N =9,>4=,>980 %urrent lia3ility I Bills &a*a%le L "hort 5erm Borro/ing L "hort 5erm #e&osit and other a00ount L short term lia%ilities against assets su%Ae0ts to finan0e lease L other lia%ilit*71nl* short term8 After adding all 0urrent -ia%ilities a00ording to gi)en format the Current -ia%ilities of 2008 N =82>90:>4=1 and 2009 N '2:>29,>'20 and 2010 N 8='>=2=>,=' <inall* di)ide 0urrent assets /ith 0urrent lia%ilities ans/er is 0urrent ratio

Craphi#al Presentation of %urrent 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 sho/s in 2008 the 0urrent ratio of national %an of Pa istan is 098: it means the 0urrent assets in0reases not mu0h as 0om&are to 0urrent lia%ilities and in 2009 sho/s the in0rasing trends as 0om&are to 2008 the 0urrent ratio of 2009 is 0988 %ut again in 2010 it sho/s 09'9 that is mu0h less as 0om&ared to 2008 and 2009 9

Na)e of the ratio H 6#i& 1est Ratio

Bith the help of for)ula ,e #al#ulate or fin& Acid Test Ratio For)ula is given 3elo, 6#i& 1est Ratio I ;ore liAui& 6ssets?#urrent lia3ilities

,2

It )eans )ore liAui& 6ssets ? %urrent lia3ilities

Sho, in ta3le
24A3"
More liquid Assets Current -ia%ilities 6#i& test Ratio

200@
:82>2::>8'1 =82>90:>4=1 00@< !1

200
=,0>040>=28 '2:>29,>'20 00@> !1

2010
=91>1=0>4', 8='>=2=>,=' 00@0 !1

Borking!
;ore liAui& 6ssets I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estmentLshort term Ad)an0es L 1ther asset7short term8 $ad)an0e7de&osits> rent and other &re&a*ments89 %urrent lia3ility I Bills &a*a%le L "hort term Borro/ing L "hort term #e&osit and other a00ountLshort term lia%ilitiesagainst assets su%Ae0ts to finan0e lease L other lia%ilit*7short term8

Craphi#al Presentation of 6#i& 1est Ratio

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!

,,

As /e see the more liquid Assets are less than 0urrent lia%ilities in all three *ears 2008> 2009 and 2010 %ut in *ear9 As /e see in gra&h the A0id 5est 3atio of 2009 is higher as 0om&are to 2008 and 2010 and /e 0al0ulate A0id 5est 3atio find all %* su%tra0t all &re&aid e;&enses from 0urrent assets to find it9

Na)e of the ratio H Borking #apital

5o find out /or ing 0a&ital ratio /e use the follo/ing formula that is gi)en %elo/

Bith the help of for)ula ,e #al#ulate or fin& Working Capital

For)ula! Borking %apital ratio I %urrent 6ssets . %urrent 2ia3ility Sho, in ta3le ;ake #orre#tiosn as instru#te& a3ove
24A3"
Current assets Current lia%ilities Borking #apital

200@
:84>9''>140 =82>90:>4=1 . >7 2@7(21

200
=4:>0=4>1=: '2:>29,>'20 .@0722 7<<<

2010
=9,>4=,>98, 8='>=2=>,=' .1>571627(@5

Borking %urrent 6sset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K "hort term !n)estment L short term Ad)an0es L 1ther asset7short term8 %urrent lia3ility I Bills &a*a%leL "hort term Borro/ing L "hort term #e&osit and other a00ount L "hort term lia%ilities against assets su%Ae0ts to finan0e lease L other lia%ilit*7"hort term8

Craphi#al Presentation of Borking #apital

,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

Borking!

%urrent asset I Cash and %alan0es /ith treasur* %an s K Balan0es /ith other %an s K -ending to finan0ial institution$net K short term !n)estment L "hort term Ad)an0es L 1ther asset7"hort term8 %urrent lia3ility I Bills &a*a%le L "hort term Borro/ing L "hort term #e&osit and other a00ount L "hort term lia%ilities against Assets su%Ae0ts to finan0e lease L 1ther lia%ilit*7"hort term8

Interpretation!
Ie see in all three *ears 2008> 2009 and 2010 this 0an sho/ the negati)e trend /hi0h is the %ad sign for the 0om&an*9 !t due to the in0reasing of 0urrent lia%ilities or the e;0ess of lia%ilities o)er 0urrent assets9 !n 2010 negati)e sigh in to mu0h high as 0om&are to 2008 and 2009 so its )ar* %ad for 0om&an*9

,:

3$ 2everage Ratios
2everage ratios )easure the &egree of prote#tion of suppliers of long ter) fun&s0 1hese in#lu&e! H 1i)es Interest Earne& H +e3t Ratio H +e3t ? EAuity Ratio H +e3t to 1angi3le Net ,orth Ratio H 1otal %apitali4ation Ratio

Na)e of the ratio H 1i)es Interest Earne&

5o find out 5imes !nterest 4arned /e use the follo/ing formula that is gi)en %elo/

Bith the help of for)ula ,e #al#ulate or fin& 1i)es Interest Earne& For)ula! 1i)es Interest Earne&! E/I1 ? Interest E=penses
E/I1 I Profit 3efore ta=ation K ;arkup Interest E=penses ? Interest E=penses

Sho, in ta3le
9ears E/I1 Interest e=penses 1otal interest earne& E/I1?Interest 200@ 4=>88:>'== 2,>884>'=8 10 6 1i)es 200 =1>'89>822 40>489>=49 10<2 1i)es 2010 =9>==:>:9: 4:>2:0>4'= 10<( 1i)es

,=

e=penses

Borking!
Profit 3efore 1a=ation! Mar u& in0ome EMar u& e;&en0essN Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for the )alue of !n)estment L Pro)ision against off %alan0e sheet o%ligations L Bad de%ts /ritten off8 N Net )ark.up interest in#o)e Net mar $u& interest in0omeL <ee 0ommission O %ro erage in0omeL #i)idend in0ome L4;0hange in0omeL L gain on sale of se0uritiesL 1ther in0ome N 1otal non )ark up interest in#o)e 5otal non mar u& interest in0ome$ Administrati)e e;&ense$1ther &ro)isions$ 1ther 0harges N Profit 3efore ta= Interest e=penses! !nterest e;&enses gi)en in &rofit and loss a00ount on 2 n d head as mar u& return interest e;&ense9

Craphi#al Presentation of 1i)es Interest Earne&

2010 2009 2008 0 0.5 1

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

Interpretation!
As /e see in ta%le the 5ime interest ratio is de0reasing o)er the time9 !n 2008 the time interest ratio is 199= %ut in 2008 its de0rease it /ith 19:2 5ime

,'

interest 0an also sho/ the de0reasing trend in 0oming *ear and than in0reasing trend in ne;t *ear li e !n 2009 it little in0rease 19:, as 0om&are to 20099

Na)e of the ratio

H +e3t Ratio For)ula! +e3t Ratio I 1otal lia3ilities ? 1otal 6ssets

Its si)ple #al#ulate total lia3ilities of all year than #al#ulate total assets of all year an& than total lia3ilities &ivi&e 3y total assets than ,e fin& &e3t ratio

Sho, in ta3le
9ear 5otal lia%ilities 5otal Assets +e3t Ratio 200@ '1:>299>108 81'>':8>,2= 00@>< 1i)es 200 82:>='=>,84 944>:82>'=2 00@>5 1i)es 2010 90=>:28>8:2 10,:>024>=80 00@>6 1i)es

Borking
1otal +e3ts I Bills &a*a%le L Borro/ing L #e&osit and other a00ounts L "u%$ ordinated loans L-ia%ilities against assets su%Ae0t to finan0e lease L #eferd ta; lia%ilit* L 1ther lia%ilit* 1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L -ending to <inan0ial !nstitution L !n)estment L Ad)an0es L 1&erating fi;ed asset L #efferd ta; asset L other assets

Craphi#al Presentation of +e3t Ratio

,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!
As /e see in ta%le the de%t ratio is not mu0h in0rease or de0rease it all same in all three *ears9 .ere 0om&an* ha)e more assets then de%t %e0ause de%t ratio of greater than 1 indi0ates that a 0om&an* has more de%t than assetsP /hile> a de%t ratio of less than 1 indi0ates that a 0om&an* has more assets than de%t9

Na)e of the ratio

H +e3t ? EAuity Ratio

For)ula! +e3t to EAuity Ratio I 1otal lia3ilities "+e3t$ ? Sharehol&er eAuity

Sho, in ta3le
9ear 5otal -ia%ilities "hareholder 4quit* +e3t to EAuity Ratio 200@ '1:>299>108 81>49'>4:8 @0>@ ti)es 200 2:>='=>,84 94>2=:>8:, @0>6 ti)es 2010 90=>:28>8:2 10,>880>048 @0>( ti)es

Borking!
1otal &e3ts I Bill &a*a%le L Borro/ings L de&osits and other A00ount L "u%$ordinate -oans -ia%ilities against Assets su%Ae0ts to finan0e leaseL #eferred ta; -ia%ilities L 1ther lia%ilities ,9

Share hol&er eAuity N "hare Ca&ital L 3eser)es L una&&ro&riate &rofit L "ur&lus on re)aluation of fi;ed assets9

Craphi#al Presentation of +e3t ? EAuity Ratio

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!
As /e see in ta%le the ratio of 2008 sho/s =998 /hi0h is de0reased in 2009 %* =994 %ut in 2010 its again in0rease %* '90:9 !ts sho/ that the 0om&an* is finan0es its assets and hea)il* relies on de%t finan0es9

Na)e of ratio! H +e3t to 1angi3le Net ,orth Ratio!

For)ula! 1otal lia3ility?"Net ,orth. Net intangi3le asset$
40

Sho, in ta3le
9ear 5otal -ia%ilities 5angi%le net /orth +e3t to 1angi3le Borth Ratio 200@ '1:>299>108 102>4:,>29, 60 @ 1i)es 200 82:>='=>,84 118>888>848 60 5 1i)es 2010 90=>:28>8:2 128>48'>:98 >00< 1i)es

Borking!
1otal +e3ts I Bill &a*a%le L Borro/ings L #e&osits and other A00ount L "u%$ordinate -oans -ia%ilities against Assets su%Ae0ts to finan0e lease L #eferred ta; -ia%ilities L 1ther lia%ilities Net Iorth N 5otal Asset $ 5otal lia%ilit* !ntangi%le asset N 7Mention in notes of %alan0e sheet 119,8 !ntangi%le asset of 2008 is :>92:> !ntangi%le asset of 2009 N 1'>:,0 and !ntangi%le asset of 2010 N 8>2,0

Craphi#al Presentation of +e3t to 1angi3le Net ,orth Ratio!

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 sho/ the in0reasing trend of the 0om&an* in 2008 it sho/s the =998 and there 2009 it de0rease %* =994 and again in 2010 it in0rease u& to '90:9 "o in *ear 2010 it?s greater as 0om&are to 2008 and 2009 and it?s less in 2009 as 0om&are to 2008 and 20109

41

Na)e of ratio 1otal %apitali4ation Ratio!

For)ula! 2ong ter) &e3t ? 2ong ter) &e3t K Share hol&er eAuity

Sho, in ta3le
9ear -ong term de%t "hare holder equit* L long term de%t %apitali4ation Ratio 200@ ,2>,9,>=4' 11,>'=0>=49 002@ 1i)es 200 100>,82>==4 194>:24>:8, 00<1 1i)es 2010 ,8>902>48= 142>==4>'9= 002> 1i)es

Borking!
2ong ter) +e3ts I -ong term %orro/ing L long term de&osits and other a00ounts L "u%$ordinated loans L -ia%ilities against assets su%Ae0t to finan0e lease L#eferd ta; lia%ilit* L 1ther lia%ilities7long term8 Share hol&er eAuityK long ter) &e3ts N "hare 0a&ital L 3ese)ers L Luna&&ro&riated &rofit L sur&lus on re)aluation of asset L -ong term %orro/ing L long term de&osits and other a00ounts L "u%$ordinated loans L -ia%ilities against assets su%Ae0t to finan0e lease L #efferd ta; lia%ilit* L other lia%ilities7long term8

Craphi#al Presentation of 1otal %apitali4ation Ratio

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 is high in 2009 as 0om&are to 2008 and 2010 the o)erall trend of de%t 0ontri%ution to/ards finan0ing sho/s the in0reasing trend of the 0om&an*9 !n 2008 it sho/s the 29: and there is further in0rease 2009 O 2010 so the o)erall trend of de%t 0ontri%ution to/ards finan0ing is high9

#$ Profita3ility Ratios Profita3ility ratios )easure the earning a3ility of a fir)0 1hese in#lu&e! H Net Profit ;argin H Return on 6ssets H +uPont Return on 6ssets H 8perating In#o)e ;argin H Return on 8perating 6ssets
4,

H Return on 1otal EAuity H Cross Profit ;argin Na)e of ratio H Net Profit ;argin

For)ula! Net Profit ;argin N Net Profit ?Net SalesL100 Sho, in ta3le
9ear Net Profit Ma* Net Sales M3* Net Profit Margin ratio: aM% 200@ 1<75<@7< 0 =0>942>'98 2:94F 200 1>7<617@56 ''>94'>=9' 229:F 2010 1>7<6(7215 @@75>271(5 1999F

Borking!
Net &rofit is the &rofit after ta; /hi0h is o%tained as: Mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of se0urities N 5otal in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L "hare of in0ome N Profit %efore ta;

44

Profit %efore ta;$ ta; N Profit after ta; And net sale N Mar u& re)enue

Craphi#al Presentation of Net Profit ;argin

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 sho/s that Net Profit margin is sho/ing de0reasing trend in 2009> /hi0h again de0reases in 2010 as 0om&are to 2008 so NBP has not signifi0ant im&ro)ed net &rofit margin in the this *ears in 0oming *ears after 20089

Na)e of ratio

H Return on 6ssets
For)ula! Return on asset! "E/I1 ? 1otal 6ssets$L100

Sho, in ta3le
9ear E/I1 a* 200@ 4=>88:>'== 200 =1>'89>822 2010 =9>==:>:9:

4:

1otal 6ssets M3* 3eturn on Asset 3atio JaM%?

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

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

170(<702576@0 =9',F

Borking!
3e)enue E Mar u& 4;&enses N Cross Profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $ u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on sale of se0urities N 5otal in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L "hare of in0ome N Profit %efore ta; E/I1 I Profit 3efore 1a=ation K Interest e=penses

1otal 6ssets! Cash and %alan0es /ith treasur* %an

Asset L #efferd ta; asset$net9

s L Balan0es /ith other %an s L

lending to finan0ial institution L !n)estmentL Ad)an0es L 1ther asset L 1&erating fi;ed

Craphi#al Presentation of Return on 6ssets

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 sho/s that the return on assets of 2008 is greater as 0om&are to 2009 and 2010 so the ratio anal*sis e;&lains that 3eturn on Assets is gro/ing in the *ear 2008> /hi0h is 2981F9 But after this it in0reases from &re)ious le)el and then it rea0hed at 292=F in finan0ial *ear 2009> again it de0rease to 29,=F in *ear 20109

Na)e of ratio H +uPont Return on 6ssets

For)ula! +uPont Return on 6ssets I Net In#o)e?Net sales L Net Sales? total 6sset

Sho, in ta3le
9ear Net Net Sales M=* Net Sales? 1otal 6sset My* +uPont Return 8n 6ssets M=Ly 10 1N 10@>N 106 N =0>942>'98M81'>':8>,2=N ''>94'>=9'M944>:82>'=2 88>4'2>1,4M1>0,:>024>=80 090': N0908, N0908: 200@ 1:>4:8>:90M=0>942>'98 200 1'>:=1>84=M''>94'>=9' N0922: 2010 1'>:=,>214M88>4'2>1,4 N09199

In#o)e? N092:4

4'

Borking!
Net In#o)e?Net Sale!
Net In#o)e! Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit$ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L gain on sale of se0urities N 5otal !n0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit %efore ta; Profit %efore ta; $ 5a; N Profit after ta; or net in0ome And net sale N Mar u& 3e)enue

Net Sale?1otal 6sset!

1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L lending to finan0ial institution L !n)estmentL Ad)an0es L 1ther asset L 1&erating fi;ed asset L #efferd ta; asset$net

Craphi#al Presentation of +uPont Return on 6ssets

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!
As /e see in gra&h and ta%le the #uPont 3eturn on Assets ratio de0reases in 2008 and 2010 as 0om&are to 2009 it means in *ear 2009 the #uPont 3eturn on Assets ratio is high as 0om&are to 2008 and 2010 it ha&&ens due to in0rease in mar $u& re)enue9

Na)e of ratio H 8perating In#o)e ;argin For)ula! 8perating in#o)e )argin I "E/I1? Net Sales$L100 Sho, in ta3le
9ears 200@ 4=>88:>'== =0>942>'98 '=99,F 200 =1>'89>822 ''>94'>=9' '992'F 2010 =9>==:>:9: @@75>271(5 '89'4F

E/I1 Ma* Net Sales M3* 8perating in#o)e )argin Ma?3*

Borking!
3e)enue E Mar u& 4;&enses N Cross profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net )ark.up in#o)e Net mar $u& in0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of "e0urities N 1otal in#o)e 5otal !n0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0omeN Profit 3efore ta= E/I1 I Profit 3efore 1a=ation K Interest e=penses

49

Net SaleN Mar u& re)enue

Craphi#al Presentation of 8perating In#o)e ;argin

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!
As /e see in gra&h and ta%le the 1&erating in0ome margin is de0reasing o)er the *ear 2008 and 2010 as 0om&are to 2009 it ha&&ens due to in0reasing of sale more qui0 l* than to o&erating &rofit9

Na)e of ratio H Return on 8perating 6ssets

<ormula: Return on 8perating 6ssets I "E/I1? 8perating 6ssets$L100

Sho, in ta3le
9ears E/I1 Ma* 8perating 6ssets M3* 3eturn on 1&erating 200@ 567@@<7>66 :=0>8,=>,08 89,=F 200 617>@ 7@22 =,:>80:>==' 99'2F 2010 6 766<7< < 6527@627(06 10984F

:0

Assets J7aM%8Q100?

Borking!
3e)enue E Mar u& 4;&enses N Cross profit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net )ark.up in#o)e Net mar $u& in0ome L <ee O 0ommissionL #i)idend in0ome L 4;0hange in0ome L 1ther in0ome L gain on sale of se0urities N 1otal in#o)e 5otal in0ome$ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit 3efore ta= E/I1 I Profit 3efore 1a=ation K Interest e=penses 8perating 6ssets I Cash and %alan0es /ith treasur* %an s L -ending to finan0ial institutions L Ad)an0es E net L 1&erating fi;ed assets

Craphi#al Presentation of Return on 8perating 6ssets

2010 2009 2008 0 2 4 6 8 8.36 10 9.72

10.84 Return on 1!eratin Assets

12

:1

Interpretation!
As /e see in ta%le and gra&h the 3eturn on o&erating asset is in0reasing e)er* *ear so 3eturn on o&erating asset ratio is mo)ing to/ards lo/ /hi0h indi0ates that the Com&an* must gi)e attention to/ards its usage of o&erational asset9

Na)e of ratio H Return on 1otal EAuity For)ula! Return on EAuity I "Net in#o)e?Sharehol&er*s eAuity$L100 Sho, in ta3le
9ear

Net in#o)e Ma* Sharehol&er*s eAuity M3* Return on EAuity Ma?3*

200@ 1<75<@7< 0 81>49'>4:8 1899'F

200 1>7<617@56 94>2=:>8:, 189=,F

2010 1>7<6(7215 10(7@@0705@ 1=991F

Borking!
Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as Mar u& 3e)enue $ Mar u& 4;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $ u& in0ome Net mar $ u& !n0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L other in0ome L Cain on sale of "e0urities N 5otal !n0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0ome N Profit %efore ta; Profit 3efore ta=. ta=I Profit after ta= or Net in#o)e

:2

Sharehol&er*s eAuity I"hare 0a&italL reser)esL una&&ro&riated &rofit L sur&lus on re)aluation of fi;ed assets9

Sour#e!
Change in equit* statement under the head 2092

Craphi#al Presentation of Return on EAuity

2010 2009 2008 15 16

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

Interpretation!
3eturn on 4quit* "3148 tells us ho/ mu0h &rofit a 0om&an* earned in 0om&arison to the total amount of shareholders? equit*9 !n 2008 it /as 1@0 %* 1@06<N and again de0reases in 2010 %* 160 (N9 P it slightl* de0reases in 2009

Na)e of ratio H Cross Profit ;argin

For)ula! CR8SS PR8FI1 ;6RCIN I "Cross Profit ? Net Sales$L100

Sho, in ta3le
9ear 200@ 200 2010

:,

Cross Profit Ma* Net Sales M3* Cross Profit Margin 3atio J7aM%8Q100

(>70<@7 0(0 =0>942>'98 =0981F

(>75<@705@ ''>94'>=9' 4890=F

5(722176<@ @@75>271(5 4898:F

Borking!
Cross &rofit N Mar u& re)enue $ Mar u& e;&enses Net "ale N Mar u& 3e)enue

Craphi#al Presentation of Cross Profit ;argin Ratio

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 is =09,81 a%ut in 2009 and 2010 it sho/s de0reasing trend9 !t is due to in0reasing of mar u& e;&enses more qui0 l* than mar u& re)enue9

&$ 6#tivity Ratios

:4

6#tivity ratios )easure a fir)Ds a3ility to #onvert &ifferent a##ounts ,ithin their 3alan#e sheets into #ash or sales0 1hese in#lu&e! H 1otal 6ssets 1urnover H Fi=e& 6ssets 1urnover
N6;E 8F R61I8 H 1otal 6ssets 1urnover
F8R;U26! 18162 6SSE1 1URN8VER R61I8 I Net sales ? 1otal 6ssets

Sho, in ta3le
9E6R Net sales Ma* 1otal 6ssets M3* 1otal 6ssets 1urnover Ma? 3* 200@ =0>942>'98 81'>':8>,2= 000>5< 1i)es 200 ''>94'>=9' 944>:82>'=2 000@2< 1i)es 2010 88>4'2>1,4 1>0,:>024>=80 000@<< 1i)es

Borking!
Net sale N Mar u& 3e)enue M !nterest 4arn M 3eturn 1otal 6ssets! Cash and %alan0es /ith treasur* %an s L Balan0es /ith other %an s L lending to finan0ial institution L !n)estment L Ad)an0es L 1ther asset L o&erating fi;ed asset L #efferd ta; asset$net

Craphi#al Presentation of 1otal 6ssets 1urnover

::

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 Assets 5urno)er ratio of all three *ears sho/s the in0reasing trend in 2008> 2009 and 20109 5he trend sho/s that %an is using its assets /ell %e0ause it is 0ontri%uting more to/ards sales9 As /e see in *ear 2010 the 5otal Assets 5urno)er is little %it in0rease as 0om&are to other t/o *ears9

Na)e of ratio H Fi=e& 6ssets 1urnover

For)ula! Fi=e& 6ssets turnover I Net Sales ? Fi=e& 6ssets

Sho, in ta3le
9ear

Net sales Ma* Fi=e& assets M3* <i;ed Assets turno)er JaM %?

200@ 607 527> @ 24>21'>=::

200 >>7 5>76 > 2:>14'>192

2010 @@75>271(5 (517<607>00

20<2 1i)es

(010 5imes

(02 5imes

:=

Borking!
Fi=e& 6sset I 1&erating <i;ed Assets Net Sale N Mar u& re)enue M 3eturn M !nterest 4arn

Craphi#al Presentation of Fi=e& 6ssets turnover

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!
5his <i;ed Assets turno)er ratio sho/s in0reasing trend in e)er* *ear li e in 2008 <i;ed Assets turno)er is 29:2 times and its in0reases in 2009 u& to ,910 times and it also and more in0rease as 0om&are to 2008 and 2009 u& to ,929 times9 <i;ed assets usage is satisfa0tor* %e0ause these are 0ontri%uting more to/ards sales9

e$ ;arket Ratios

:'

;arket ratios are #o))only use& 3y the investors to assess the perfor)an#e of a 3usiness as an invest)ent an& also the #ost of issuing sto#k0 1hese in#lu&e! H +ivi&en& per share H Earning per Share H Pri#e?Earning Ratio Na)e of ratio H +ivi&en& per share
For)ula! +ivi&en& per share I +ivi&en& pai& to share hol&er ? 6verage #o))on share outstan&ing

Sho, in ta3le
9ear +ivi&en& pai& to sharehol&er 6vg0 #o))on share outstan&ing +ivi&en& per share 200@ =>104>894 89=9': 60@1 Rs0 200 :>820>,,8 10'=,'0 <051 Rs0 2010 8>0=0>:10 1,4:4=, <0 1 Rs0

Borking

:8

6vg0 #o))on share outstan&ingI Share #apital a)ount ? Par value of share 9ear 6vg0 #o))on share outstan&ing 200@ I@7 6 7><1?10 I@ 6 ><01 89=9': 200 I107>6(7>02?10 I10>6(>002 10'=,'0 2010 I1(75<5762@?10 I1(5<5620@ 1,4:4=,

Craphi#al Presentation of +ivi&en& per share

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 sho/s that in *ear 2008 the +ivi&en& per share is =981 %ut it de0rease in 2009 and again in0rease in 20109 #i)idend &er share ratio informs a%out the &ri0e of shares in the mar et also tells the )alue of the %an ?s shares &ri0e9 5his ratio for the %an is rising 2010 as 0om&ared to the 2008> 20099

Na)e of ratio H Earning per Share

:9

For)ula! Earning per Share I Profit 6vaila3le to sharehol&ers or Net in#o)e

after ta=? No of shares outstan&ing

Sho, in ta3le
9ear Net in#o)e after ta= No of shares outstan&ing 200@ 1:4:8:90 89=9': 200 1':=184= 10'=,'0 2010 1':=,214 1,4:4=,

Earning per Share

1>02( Rs0

160(2 Rs0

1(00< Rs0

Borking
Net In#o)e!
Net &rofit or net in0ome is the &rofit after ta; /hi0h is o%tained as mar u& re)enue E mar u& e;&enses N Cross &rofit Cross &rofit $ 7Pro)ision for ad)an0es L Pro)ision for in)estment L Pro)ision lending to finan0ial institution L Bad de%ts /ritten off8 N Net mar $u& in0ome Net mar $u& !n0ome L <ee O 0ommission L #i)idend in0ome L 4;0hange in0ome L 1ther in0omeL gain on sale of se0urities N total in0ome 5otal in0ome $ Administrati)e e;&ense $ 1ther &ro)isions $ 1ther 0harges L share of in0omeN&rofit %efore ta;

=0

Profit %efore ta;$ ta; N Profit after ta= or net in#o)e No0 of share 8utstan&ing I Share #apital a)ount ? Par value of share

Craphi#al Presentation of Earning per Share

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
4arnings &er share ser)e as an indi0ator of a 0om&an*Hs &rofita%ilit*9 5he reason of in0rease earning &er share is to in0rease the net in0ome of the 0om&an* and the reason of fallen earning &er share is that net in0ome is de0reasing and the outstanding share of the 0om&an*9 After 2008 its de0reases in 2009 and 2010

Na)e of ratio H Pri#e?Earning Ratio

For)ula! Pri#e Earning Ratio I %urrent )arket Share pri#e ? Earning per Share

=1

Sho, in ta3le
9ear ;arket value per share Earning per Shares Pri#e Earning Ratio 200@ :09,2 1'92,F 20 20< Rs0 200 '49,' 1=9,2F 50<<>0 Rs0 2010 '=982 1,90:F <0@@66 Rs0

Borking
Sour#e!
%urrent )arket Share pri#e fro) htt&:MM///9 se90om9& M EPS is availa3le in 3alan#e sheet0

Craphi#al Presentation of Earning per Share

2010 2009 2008 0 1 2 2.9205 3 4 5 4.557

5.8866 .rice %arnin Ratio

Interpretation

=2

5he Pri0e 4arning ratio is greater in 2010 as 0om&are to 2009 and 20089 Pri0e 4arning ratio doesnHt tell us the /hole stor* %* itself9 !t is usuall* useful to 0om&are the Pri0e 4arning ratios of one 0om&an* to other 0om&anies in the same industr*

1(0 Future Prospe#ts of the 8rgani4ation

Am doing internshi& in national %an of Pa istan and o%ser)ed during internshi& and see detail in NBP /e%sites and internet that the future of National Ban of Pa istan is )ar* %right and the e;&ansion of NBP is in0reasing da* %* da* and during the 0al0ulation of ratio ! o%ser)ed that the earning of NBP is high as 0om&are to %ase or &re)ious *ears9 5he most three ratios to 0he0 the future &ros&e0ts of the entit* and all three ratios sho/s in0rease e)er* *ear these there ratios are 0urrent asset ratio> Ior ing 0a&ital> Cross Profit 3atio9 But NBP is gearing 0hallenges fa0ed %* the domesti0 %an ing industr* due to inno)ation and ad)an0ement in international %an ing9

=,

5he future of NBP is %right and NBP is maintaining its &osition to set higher standard of a0hie)ement %e0ause /hen ! 0al0ulate the ratios all re&resent in0reasing moment and all are &ositi)e it means the %an has 0a&a%ilit* to &a* off and its de%t is also su&er%95he a0tions ta en %* 0urrent management &ro)ide a great o&&ortunit* for NBP for ma ing it future &ros&er and 0an ma e NBP not less than an* modern 0ommer0ialize %an in Pa istan9

150 %on#lusion
! am doing m* internshi& &rogram in the largest Co)ernment %an of Pa istan its National Ban of Pa istan9 NBP is one of the leading %an s in %an ing se0tor9 #uring m* sta* of = /ee s at NBP it?s m* 1st &ra0ti0al life e;&erien0e> ! learnt a lot of tas > man* &rofessional s ills9 ! also learned a%out ho/ to deal /ith &u%li09 NBP has 12:4 nation/ide and almost 2: %ran0hes o&erating in other foreign 0ountries in0luding ("A> China> <ran0e> .ong @ong> Azer%aiAan> Bangladesh> and .ong @ong9 National %an of Pa istan is one of the %iggest online %an s in Pa istan9 NBP is a go)ernment %an that

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/h* it /or s a00ording to rules set %* the state %an of Pa istan9 NBP is also in)ol)ed in 0ommer0ial %an ing9 !t is a &art of "tate Ban of Pa istan and it is its maAor strength9 National Ban of Pa istan esta%lish in the National Ban of Pa istan ordinan0e 19499 Am doing m* internshi& in NBP if ! sa* the future of NBP is %right it /ill not %e /rong9 ! o%ser)ed during m* training in NBP the &a&er /or of NBP is a/esome %ut no/ a da* of te0hnolog* the te0hnolog* is an im&a0t to sur)i)e in the mar et and to %e in 0om&etition9 4)er* organization has some /ea ness and during m* internshi& in NBP <$ 10 %ran0h !slama%ad ! also o%ser)ed it 0o)ers all its /ea ness and ta e o&&ortunities at right time surel* it 0an %e in the /a* of &rogress insh Allah and /ill 0ontri%ute in o)erall &rogress of NBP at national le)el as /ell as the international le)el9 Ihen ! 0al0ulate the 3atio anal*sis of National Ban of Pa istan it sho/s that NBP is a most rising %an /ith highest return on 0a&ital> largest mar et share amongst all Ban s in Pa istan9 NBP 0arries highest 0ost to !n0ome ratio as 0om&are to all other 0ommer0ial %an s9 But still thin s that there is need for de)elo&ment to o)er0ome on /ea nesses in order to ee& its &osition as an e;0ellent in %an ing field9 @ee&ing in )ie/ the finan0ial ratios it is o%ser)ed that Net assets of the NBP are in0reasing da* %* da*9 5he net &rofit is also in0reasing /hi0h ma* attra0t the in)estors9 5he &rofit of national %an of Pa istan is also in0reasing da* %* da* that attra0t the 0ustomers and in)estors9 5his ratio of NBP is in0reasing /hi0h sho/s large num%ers of the assets are finan0ed %* the de%ts /hi0h is not good9 Positi)e /or ing 0a&ital ratio sho/s that its assets are more than lia%ilities> so the %an is 0a&a%le to &a* its lia%ilities9 3atio sho/s that NBP is utilizing its Assets effi0ientl*9 NBP should full* 0on0entrate to im&ro)e its &erforman0e and standards to meet the 0hallenges %* the e0onom* as /ell as %* the 0om&etitors and for this &ur&ose it needs to o)er0ome the &ro%lems and im&ro)e the qualit* of ser)i0es s&e0iall* in ad)an0e se0tion> that /ill &re)ent it from huge losses9

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1<0 Re#o))en&ations for I)prove)ent I)prove its EPS 3e#ause its sho,s #o)pany profita3ility0 In#rease sale an& re&u#e e=penses to earn 3etter profit )argin
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 I)prove liAui&ity position 3y in#reasing its sale In#rease the #urrent assets as #o)pare& to #urrent lia3ilities Proper training of staff )e)3ers Prevailing frien&ly environ)ent %o)plaint #ounter shoul& 3e availa3le Borking #apital shoul& 3e positive 0

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160 Referen#e - Sour#es use&

Ie%site of National Ban of Pa istan ///9n%&90om9& Annual 3e&ort of National Ban of Pa istan Ne/s&a&er #a/n Ne/s&a&er 5he Nation Ne/s&a&er Business 3e0order Miss Asia Aslam 7Bran0h Manager8 Auditor?s re&ort of National Ban of Pa istan "ear0hing from different /e%sites from !nternet

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1>0 6nne=es
http!??,,,0n3p0#o)0pk?Pu3li#ations?in&e=0asp= http!??,,,0n3p0#o)0pk?Pu3li#ations?6nReport200@0asp= http!??,,,0n3p0#o)0pk?Pu3li#ations?6nReport200 0asp= http!??,,,0n3p0#o)0pk?Pu3li#ations?6nReport20100asp=

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