Internship Report Nib Bank 6d5c5d

Internship Report

1. NIB BANK (Salam Banking) 1.1 Introduction to NIB Bank As Salam is a tribute to the people other banks for granted, a symbol of respect for those who want respect more than any thing. Salam is an every day salutation a special tribute, a mark of iration of an expression of respect. Communicate through gesture, a node, a salute, a bow, an Addab and through hand shake. So NIB is also famous with its name Salam Banking. Basically, NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was built-in in March 2003 as a public limited company. It started business in October 2003 when all assets, rights and obligations of the previous National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC were combined with and into the bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of Credit Agricole Indosuez were also merged with and into NIB. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments. This shareholding was promoted and enhanced to over 70% in June 2005 following an raise in NIB's paid up capital to Rs.3.4bn. NIB Bank has since grown speedily from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007. Total assets have grown-up from Rs.9bn in December 2003 to Rs.87bn (excluding acquisition of PICIC through rights) as of September 30 2007, a CAGR of 85%. Credit growth has been equally rapid, increasing from Rs.7bn to Rs.43bn in the same period (a CAGR of 64%), resulting from successes in both the commercial and consumer business. Deposits for the same period have grown at a CAGR of 95%, reaching Rs.45.3bn. The overall client base of NIB has also witnessed a remarkable expansion in the same period as of September 2007; from a few thousand to over one hundred thousand.NIB Bank's vision is to rank amongst the top 5 banks in the country. Therefore towards end of June 2007 it get hold of majority shares of PICIC with the aim of merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited into NIB. The acquisition was financed through the country's largest private sector rights issue, with resultant increase in NIB's paid up capital to Rs.21.4bn. The PICIC acquisition has bought with it 1

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another subsidiary "PICIC AMC" and associate "PICIC Insurance". NIB already has a shareholding in NAFA, an Asset Management Company (AMC); thus its asset management business will now also be improved, with diversification in the insurance business. 1.1.1.

Mission & Vision of NIB Bank

1.1.1.1 Mission Statement NIB’s Mission is to provide a banking experience so unique, that it compels each of our customers to want a long term, multi-product relationship with NIB Bank. 1.1.1.2 Vision

Statement

NIB’s Vision is to: •

To be the bank of choice for the most discerning segments of the consumer and corporate markets in Pakistan.

•

To revolutionize banking for the SME segment by creating new products and distribution channels.

•

To become a leading provider of investment banking and wealth management services.

•

To be a top-5 choice of employer, a premier developer of human talent, and an organization that understands and honors its social responsibilities.

1.1.2. Progress

&

Achievement

The legal merger of PICIC, NIB & PCBL took place on December 31, 2007, once all regulatory approvals were in place. NIB Bank led by Khawaja Iqbal Hassan, ed by four business heads and ten business enabling function heads. Till from that it is continuously doing progress. The merger has resulted in immensely expanded network of 240 branches and total assets of over Rs.185bn. As a result NIB has the second highest paid up capital of around Rs.27.5bn and ranks number 7 amongst commercial banks in of distribution network which is their big achievement. Mergers will accumulate through lower cost deposits, better customer service delivery channels and overall improved efficiencies. These would provide a 2

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competitive edge in the face of increasing competition. Temasek Holdings remains the largest single investor in NIB

Bank. Temasek is the business group from Singapore. This merger is one step forward in combining the banking sector as visualization by State Bank of Pakistan and enhancing FDI as per the Government of Pakistan's objectives. It offers long term banking relationship to their customer through wide distribution channel embedded in their communities. It helps them in their prosperity and growth.

1.2 Future Prospects of NIB Bank We expect that the banking sector in Pakistan will remain extremely competitive for the foreseeable future. Therefore, the success of any new institution will be a function of it clarity of vision and efficiency of implementation. While we are confident that NIB Bank will achieve strong growth in revenues, we believe it is necessary to create the correct foundation for sustainable growth into the future. With an acceptable level of controls and an appropriate level of technology infrastructure, NIB Bank is poised to offer incomparable services to its valued clients through its countrywide network of branches.

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1.3

NIB’s Organization Structure

Board of Directors

Board Audit

President and CEO

Committee

Head of Commercial

CFO Head of

Banking Group

Head of Consumer

Head of Operations

Business

& Technology

Head of

Head of Human Resource

Corporate Bank

Head of

Head of

Compliance

Risk Management

Head of

Head of

Internal Audit

Treasury

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NIB’s Department

1.4

NIB’s Services/ Products

1.4.1 Loans NIB in Salam Banking offers personal loan and CAP to the customer. 1.5.1.1. Personal loan Nib gives personal loan to the small business man. Some important requirements are mention as under; • Minimum age of 21 years • Maximum age of 65 the time of maturity •

Minimum tenure of business 3 years 5

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• Sole proprietorship • Proper business setup • Secure/unsecured • If business is secure than maximum limit of the loan is 750000 • In unsecured maximum 150000 1.5.1.2 CAP (Cash against property) It’s a type of loan in which NIB takes mortgage of any property against cash. In case of any defaulter, bank will sell the property of that person and avoid loss. It’s a part of risk management.

1.5.2 s Types of s in NIB Salam banking are; •

Salam Business / Salam Current

•

Salam Bachat

•

Salam Fix • Salam Committee

•

Sole Proprietor

•

BBA

•

Business/Company

•

Partnership

2 INTERNSHIP 2.1. Functioning of Relevant Departments 6

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2.1.1. Customer Service Department NIB is trying to serve according to the desire of the people. People want to choose where the mark up rate is low, where the procedure is easy and where the easy installment are possible, so according to these requirement of the people of NIB decreases the mark up rate to 9 %,which is lowest markup rte in the Pakistan, basically in the banking sector, they start to serve the market with two different strategies, first is to introduced the products or service on low price, and then increase the service charges, and 2nd one is to introduced the service on high price and then decrease the charges. The NIB Bank is using 2nd strategy. And in the future of NIB is trying to maintain this strategy for gaining the market share. The main responsibilities in this department were; •

To attract the customers and retain them.

•

To listen the customer’s complain and solves their problems and confusions (if

any). •

To fill deposit slips.

•

To clear cheques.

•

Money Transactions.

•

opening.

2.1.2. Credit Department This department is responsible for the lending of the loan to the customer brought by the Relationship Managers. They check the facts & figures mention by the customer are correct and follow the certain policy. The process of loan lending to the customer is;

2.1.2.1. First step

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•

Sale department (RM) bring first from the market.

•

They prepare the case according to the policy.

•

RM handover the file to BDM

•

BDM enter the data on his MIS and then handover the file to the credit department.

2.1.2.2. Second Step •

Credit department first of all screen the file

•

ECIB and DC requested

•

Telephonic verification

•

Residence verification

•

NADRA verifications

•

Reference check 2.1.2.3. Third step This step is most important step for loan lending, which is “Credit Meeting”. BCIM conducts it on the business spot with the customer to asses the business worth and the reputation of the customer in the market. Few important things while conducting the credit meeting are •

Condition of the stock

•

Business setup

•

Cash flow analysis

•

Sale

On the basis of credit meeting BCIM take the final decision about the lending that how much customer worth for the loan. 2.1.2.4. Fourth Step Then the credit department does final step, which is the calculation of the loan in the Fine one Production (online software).

2.1.3. Operations Department 8

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Operation Department’s main responsibilities are; •

To collect installments of loans.

•

Deposit and withdraw cash.

•

Make clear transactions of credit and debit.

2.2. Assignments

2.2.1 1st week They told me about the General banking, it was basically divided into the following sub departments, and I just worked in some of the departments, the major departments of general banking are as follows: •

opening

•

Clearing

•

Term deposit

•

Customer relationship

•

Issuance of Checkbook after opening

In this week I also met with the my colleagues and senior officers, than my senior Manager Qaiser send me to my colleague Manager Saqib, I took all the instructions from Mr. Saqib. 2.2.2

2ND week

My 2ND work in the bank was to screen the files according to the policy of the bank. Supervisor Mr.Saqib told me the process of screening. In screening the files given by the sales department is then checked later in credit department. Few important steps were •

Match the information with CNIC

•

Name of customer and spell check

•

Signature match

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Internship Report •

Any other discrepancy, if found return the file to the sales department.

•

To insure all other forms attached

Credit department received daily 8-15 files from the sales department. I did this job with full responsibility and conducted it very well.

2.2.3 3rd week 2.2.3.1. Telephonic verification After screening the files in few days second important thing I did was telephonic verifications of customer in third week. In telephonic verification all the facts & figures mention in the file by the sales department on behalf of the customer are checked to ensure the right information of the customer. Normally one telephone took the time of 10-15 minutes. Two-reference mention in the file also ed on the phone to ensure the relationship with the customer. It was very time consuming process often given number was not ed. 2.2.3.2. DC Request (Data Check) I also requested for the DC in NIB. DC prepare on the Excel sheet in which information about customer was mentioned. Few important things were; •

Name of the branch

•

Name of the RM

•

Father name of customer

•

DOB

•

Residence address

•

Residence Telephone

•

Business Name

•

Business address

•

Business telephone

•

Cell phone 10

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•

Require loan amount

•

City

2.2.4.

4th week

2.2.4.1. opening Although the procedure of opening an in a bank is a quite complicated job but some of the basic necessities for opening the are as follows: •

Introduction

•

National I.D. card

•

Personal data

•

Details of dealing with other banks.

These are some of the basic requirements for opening the . 2.2.4.2.

Issuance of Cheque book

Once the is opened, NIB Bank issued the cheque book to the customer so that they could withdraw their money whenever they like. The producer of issuance of the cheque book is as follows: For the customer who already had an with the bank, the lastly consumed cheque book application slips with the help of which a new cheque book is issued. The person who is going to open a new for the first time gets the cheque book free without any requisition slip. For the new depositors the cheque book is not issued at the time of opening of , rather it is issued after three days but, as the most of the customers are from the armed forces so they usually get the cheque book earlier. NIB BANK issues the cheque books for both the local and foreign currency s. I remained there in the -opening department for one week and daily I learnt a new thing. In the start I had stated the opening procedure and issuance of cheque book in a very comprehensive way, now let me tell u the further related detail of opening. 11

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•

First of all a customer comes and gets the information regarding the opening of . After getting the proper information he gets an introduction and goes for opening an of any kind whatever he wants.

•

I filled the form regarding the opening of which is in fact a request.

•

Then I filled S.S card which contained the signature that will be used in future in order to identify that you are the same particular person who perfectly eligible for receiving the benefits.

•

The S.S card and the application form are verified and the verification stamp is imposed on it.

•

After verification of application forms are pasted in the file with the serial no. which is actually the no. Allocated to the respective customers.

•

The cheque book is issued to the customer after three days.

•

A letter of thanks is posted to the customer as well as the introducer. The introducer is thanked for the two perspectives. The procedure for opening the comes to an end after sending the letter of thanks.

The becomes Inactive if there is no debit transaction. becomes active if there is credit transaction. 2.2.5.

5TH Week

I told My supervisor Mr.Qaiser that I want to learn more about the banking than he told me about Zakat process and Checking and amendment in the signature in my 5th week. He told me about Zakat. Zakat is deducted on the first of Ramadan. However, the Bank can't deduct the Zakat if you have given Affidavit (declaration regarding not to deduct Zakat on Stamp paper). For non-residents the tax and Zakat is exempt (visa is required as the proof that the particular person is really a non-resident). Similarly Christians has not to pay the tax, they have to pay the tax only.

2.2.6.

6th week

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Internship Report It was my last week of my first Internship. I got a lot of information which I did not know previously. Then I requested my Supervisor to let me go in Sales Department. He took permission from Head office that Internees are allowed to move for survey. He gave me permission then in my last week I worked in the field as sales & marketing. I had visited many boutiques and beauty parlors and convinced ladies to take loan. I was able to take 2 customers, one has beauty parlor and 2nd customer was a lady doctor.

2.3. Learning I had worked as an Internee in NIB Bank for 6 weeks as per required by University. During my Internship, there was a tremendous atmosphere in NIB Bank. I learned so many things from their management like how to work in a standard place. They are using their own made software which is used by Bank for online transactions.

•

The most important benefit of this internship is that I got practical exposure of work

place. •

I got practical experience of working practices related with my field. •

I learned that how to manage things and how to create balance among work life and

personal life. • •

These learned management practices are going to be very helpful for me while on job.

Management experience from every aspect was really very much friendly •

Management did help me a lot during my work they always guide me especially

Manager of NIB Bank. •

During my internship I learned how to talk and behave with employees and senior

management. •

During my internship I have seen that no extra burden given to any employee. But if

there is a need of extra work the manager always do himself (on importance basis) and went back to home when not a single work remaining.

2.4. Observation 13

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During my stay I had observed that there is no Reward system for internees and there are some employees who don’t give as much importance to internees. Thirdly I observed Selections of employees are very rare from internees. I think that in Wah Cantt Branch, NIB has competitive edge of providing loans for businesses because no other bank is seemed to do this act.

2.4.1. SWOT Analysis As SWOT analysis is based on the assumption that if managers carefully review such strengths, weaknesses, opportunities, and threats a useful strategy for ensuring organizational success will become obvious. 2.4.1.1. Strengths Strength can be defined as an area where a company is best at doing something or a feature that puts a company at an advantage in comparison to its competitors. I had observed that NIB Bank enjoys the following strengths. •

The standard of service is very good and customers are satisfied with that service.

•

They have a computerized system, and online banking.

•

NIB is the 7th largest bank in Pakistan with over 240 branches

•

NIB Bank’s ATM’s are linked with a number of leading local and foreign banks.

•

Automated Systems made NIB Bank to rise with the pressure of rising competition.

•

The employers at NIB are offered reasonable monetary benefit. Normally two bonuses are given Eid-Ul-Fitar & Eid-Ul-Azha.

•

Promoting savings and investment

•

NIB Bank has well established website and is up to date about the bank.

2.4.1.2.

Weaknesses

A weakness is defined as an area in an organization where the organization is not as good at doing something as its competitors or a thing which an organization lacks or disadvantage in comparison to its competitors. Based on the above definition NIB Bank has the following weaknesses;

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•

Branch area is very small with respect to hired employees.

•

Online recruitment (unable to collect a pool of candidate because net is not available everywhere in the country).

•

Branch manger can not fire any employee on his bad performance as they are hired as permanent employees.

•

Centralized organizational structure.

•

Information system needed for cards may not be compatible with legacy systems.

Opportunities An opportunity can be defined as a change in external environment, which if properly exploited with the organizational strengths will result in enhanced sales, market share, or income. Using its strengths, NIB Bank can avail the following opportunities; •

Many areas for new branch opening.

•

Large market potential.

•

Favorable demographic changes in society. •

In the economy of Pakistan where other banks are very carefully lending the different loan NIB giving personal loan in huge quantity. This will result in great market share in future.

Threats Threat can be defined as a change in external environment which if not met with proper strategies will result in loss of revenues, market share, or income. In the context of NIB Banks external environment, the following potential threats exist; •

Foreign banks operating in Pakistan are playing a significant role by incorporating new technologies and providing better quality services thus creating a threat to the local banks especially to NIB Bank which tries to develop its image in the eyes of customers.

•

Huge competition with local and foreign banks

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•

Rapid technological advancements has become challenge for NIB Bank Ltd

•

Already many huge banks are doing business in the banking sector.

•

Devaluation of Pakistani currency.

•

The bank is facing threats with the emergence of new competitors especially in of foreign banks.

2.4.2. Recommendations First of all there is no Job security in the NIB Bank. The employees in the organization should be insured job security so that there is no pressure on the employees while performing their tasks. NIB needs to it’s self as it is not so familiar among the people like other banks. They should give training to its staff about the knowledge of the products of different banks as they then able to compare the advantages of their product with respect to others. They should provide the facility of online submission of utility bills. They should launch home and car loans services. NIB should also introduce “Dress-Down” day i.e. employees should be given permission to wear dresses other than formal dresses on certain days so as to make them relaxed while work. I found many complaints regarding the ATM issues in NIB. Most of the time ATM remained offline. NIB needs to make sure the alternative links for the customer. At last they have a very small building and there is no space for sitting for customer they should try to expand their building. •

Assessment Of Performance Of Employees

There are no proper criteria for assessment of performance of employees and most of the time it is on the personal judgment of the manager who forward the assessment sheets of all employees to area office for their promotions.

•

Problem With Information System 16

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NIB Bank Ltd information system is not very good and most of the time online transaction service of the Bank network is down, which occurs to be a big issue in smooth working, management really needs to work on it. •

No Rotation Of Employees From Department To Department

There is not any rotation of employees within departments and cross departments. Therefore, the top management should immediately start thinking in of rotating the employees in various departments, as this alter work force into human capital. •

Implementation Of Management Policy

NIB Bank Ltd Limited should develop a very serious management policy to attract multi NIB corporations as its clients. This action, if actualized, would not only prove to be highly profit generating, but it would also contribute a lot towards NIB Bank Ltd’s image building. •

ments/Marketing

Bank needs to use more marketing channels to make public aware of its products and services. In the presence of intense competition NIB Bank Ltd has to realize the importance of marketing. •

Distribution Of Work

Management should distribute work equally among different employees. Some of the employees are overburdened while some sections are overstaffed. •

Staff Training & Improvement In Processes

To keep staff well equipped and updated with enormous changes in current banking environment, training are an important part of survival. Especially for the customer service staff and phone banking department as they are at front end and need more efficient performance for having satisfied customers. 3.

CONCLUSION 17

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During my stay at NIB Bank limited I have learned a lot of things about professional field like culture of the organization and the behavior of employee like how to deal with customer to become a loyal customer of the organization. NIB is a Singapore based business group. Group has diversified type of business all across the globe. In NIB Bank, employees have very good relationship among themselves and also with their customers. Employees treated me very well during my internship duration and helped me to understand the way of doing work. NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007. The internship helped me to improve my confidence level and I learned the way how to deal the organization level colleagues. It also increases my interaction with different people from different background and helped me to learn and understand their values and how to deal them in effective manner. In NIB Bank Selections of employees are very rare from internees I learnt a lot from my internship which will help me a lot in my professional career. The Pakistan economy continues to face the challenges arising due to global economic crisis. Though the economy has shown some positive trends, however, many indicators need to be further improved to put the economy back on stability track.

References 18

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www.nibbank.com.pk Mr. Qaiser Mehmood Malik (Branch Manager) Mr. Muhammad Younis Malik (Branch Operation Manager) Mr. Khurram (Branch Development Manager)

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