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B P

BANK OF PUNJAB

1

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Dedication

I Dedicate This Work To My

Honorable Parents

Who have been a great source of love,

affection and encouragement throughout my academic career and their matchless

sacrifices in the process of my upbringing make me respectful to all human talk.

2

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Acknoled!e"ent

Praise be to Almighty Allah, the Most Merciful and Magnificent and to his Holy Prophet

Muhammad (Peace e !pon Him" #ho is forever a torch of guidance and kno#ledge for

humanity as a #hole$

% feel deep sense of gratitude to manager of &he ank of Pun'ab shah ruknealam ranch

Multan for allo#ing to me to do my internship and also providing me necessary assistant

and guidance$

% o#e depth of gratitude to my affectionate parents, and campus in charge mam )ainab

rehman #ho supported me morally and inspired me to the higher ideas of life$

My gratitude also goes to all those friends #ho provided me any assistance in #hat so

ever manner in the preparation of this study$

*

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#$ec%ti&e '%""ary

% have presented my report into * main sections$ %n the (stsection % have described the

introduction, nature and history of +P$ etails of products and services, introduction of

all departments and the branch #here % did my internship and the task done by me duringmy training$

%n the)ndsection %-ve made the complete ration analysis, vertical and hori)ontal analysis

and +P comparison #ith the industry$ %n 2../ critical analysis does not provide

satisfactory results, the main reason is the loss on revaluation of assets (Hames 0han

raud cause"$

%n the *rdsection % have suggested some recommendations in the light of ratios and

W+& analysis$ +P has negative #orking capital in all the three years so it is essential

to increase current assets and reduce investment in fi3ed assets$ Anne3es and reference

and sources used are also described in this section$

ince the incorporation the ank has gro#n manifold sho#ing remarkable gro#th in all

aspects$ 4specially, after the current management took over the affairs of the bank in

2..5 there has been tremendous gro#th in all its facets of operations as a result of

application of prudent and pragmatic policies #ith futuristic approach$ +#ing to its

significant performance, profitability, financial standing and market penetration the ankhas attained reputation of a responsible corporate citi)en playing a pivotal role in

economic and social development of the country$

ound financial footing, improved profitability and competent management are the key

factors taken into consideration by PA67A, the credit rating agency, #hile assigning to

the ank highly credible ratings of AA for longterm and A1 for shortterm #hich is the

highest rating in this category$

8

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'canned *o+y o, Internshi+ *o"+letion *erti,icate

9

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Table o, *ontent

edication$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2

Ackno#ledgement$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*43ecutive ummary$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$8

canned 6opy of %nternship 6ompletion 6ertificate$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9

&able of 6ontent$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$:1$ rief %ntroduction of the +rgani)ational usiness ector$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/

+ver ;ie# of the +rgani)ation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/

a$rief History$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/b$%

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(- Brie, Introd%ction o, the Or!ani.ational B%siness 'ector

ank of Pun'ab is a commercial bank competing in the banking sector of Pakistan

successfully$ 4stablished in 1=/=, in pursuance of &he ank of Pun'ab Act 1=/= and #as

given the status of scheduled bank in 1==8$ &he ank of Pun'ab is #orking as a

scheduled commercial bank #ith its net#ork of 252 branches at all ma'or business

centres in the country$

&he ank provides all types of banking services such as eposit in >ocal 6urrency,

6lient eposit in oreign 6urrency, 7emittances, Advances to usiness, &rade, %ndustry

and Agriculture A #holly o#ned subsidiary of +P First P%n/ab Modaraba (%slamic

mode of financing" #as established in 1==2 and is being managed by Pun'ab Modaraba

ervices (Pvt" >td$

O&er 0ie o, the Or!ani.ation

a- Brie, History

4stablished in 1=/=, in pursuance of &he ank of Pun'ab Act 1=/= and #as given the

status of scheduled bank in 1==8$ &he ank of Pun'ab is #orking as a scheduled

commercial bank #ith its net#ork of 252 branches at all ma'or business centers in the

country$ &he ank provides all types of banking services such as eposit in >ocal6urrency, 6lient eposit in oreign 6urrency, 7emittances, and Advances to usiness,

&rade, %ndustry and Agriculture$ &he ank of Pun'ab has indeed entered a ne# era of

science to the nation under e3perience and professional hands of its management$ &he

ank of Pun'ab plays a vital role in the national economy through mobili)ation of

hitherto untapped local resources, promoting savings and providing funds for

investments$ Attractive rates of profit on all types of deposits, opening of oreign

6urrency Accounts and handling of oreign 43change business such as %mports, 43ports

and 7emittances, inancing, &rade and %ndustry for #orking capital reDuirements and

money market operations are some facilities being provided by the ank$ &he lending

policy of ank is not only cautious and constructive but also based on principles of

prudent lending #ith ma3imum emphasis on security$ As agriculture is considered as

backbone of our economy the ank of Pun'ab has introduced E0issan ost Agriculture

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inance chemeE to small farmers$ A #holly o#ned subsidiary of +P, irst Pun'ab

Modaraba (PM" #as established in 1==2 and is being managed by Pun'ab Modaraba

ervices (Pvt" >td$

uring the year +P incurred a loss and received from @ovt$ of Pun'ab 1. illion$

b- Nat%re o, the Or!ani.ation

%t is principally engaged in commercial banking and related services #ith its registered

office at +P &o#er, 1., lock 42, Main oulevard, @ulberg %%%, >ahore$ &he ank

has 252 branches (2..5? 252 branches" in Pakistan and A)ad Fammu and 0ashmir at the

year end$ &he ank is listed on >ahore, 0arachi and %slamabad tock 43changes$ &he

ma'ority shares of the ank are held by the @overnment of Pun'ab$ Pun'ab Modaraba

ervices (Private" >imited is a #holly o#ned subsidiary of &he ank of Pun'ab and isprimarily engaged in the business of floating and managing modarabas$

A unit of service industry of Pakistan, +P (commercial bank" is engaged in the

borro#ing, lending and advancing of money, the dra#ing, making, accepting,

discounting, buying, selling, collecting and dealing in bills of e3change, promissory

notes, drafts, bills of lading, receipts, #arrants, debentures, certificates etc$

%t is also engaged in the buying, selling of foreign e3change including foreign bank notes,

the acDuiring ,holding, issuing on commission , under#riting and dealing in stocks,

funds, shares, debentures, the negotiating of loans and advances , the receiving of all

kinds of bonds, valuables on deposit or for safe custody$

&he providing of safe deposit vaults the collecting, and transmitting of money and

securities$

c- B%siness 0ol%"e

&he bank of Pun'ab #as constituted in pursuance of the ank of Pun'ab Act 1=/= and it

started #orking on 19ahore$ &he +P #as given the status of scheduled bank by the state ank of

Pakistan on eptember 1=, 1==8$

Authori)ed capital of &he ank of Pun'ab as on *1122../ is 7$1,...,...,...(7$

1..,...,... ordinary shares of 7$ 1.$.. each"$

=
http://www.punjabmodaraba.com.pk/http://www.punjabmodaraba.com.pk/http://www.punjabmodaraba.com.pk/http://www.punjabmodaraba.com.pk/http://www.punjabmodaraba.com.pk/

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Iss%ed s%bscribed and +aid %+ ca+ital )112

%ssued subscribed and paid up capital of the bank fully paid in cash is 3'-

19,333,34045(3'- 193,333/- ordinaryshares of 7s$1.$.. each fully paid in cash"$

hares issued for consideration other than cash (onus hares" are 3s-

509,464,03645(3s- 5,287,974ordinary shares of 7s$ 1.$.. each as fully paid

bonus shares"$ o total paid up capital of the bank is 3s- 528,797,37645 63s-

509,464,0367 19,333,3408-

@overnment of the Pun'ab (@ovt$ of Pun'ab" held 91G shares in the ank as at *1

ecember 2../$ &he ank, subseDuent to the year end, has received 7s$1.,...,...thousand from the @overnment of the Pun'ab as advance subscription money$

&he bank of Pun'ab is listed at >ahore and 0arachi tock 43changes$ ifty one percent

(91G" of the share capital is held by the @overnment of Pun'ab and the rest is o#ned by

Pakistani individualsfirms and foreigners$

uring the year the ank has incurred a loss of 7s$ 1.,.9=,9.9 (thousand"$ &he paidup

capital and reserves (net of losses" of the ank amounts to 7s$ 9,.9:,92. (thousand" as

against the minimum regulatory capital reDuirements of 7s$ 9,...,... (thousand" and

6apital AdeDuacy 7atio (6A7" remained belo# the prescribed level of =G$ Moreover,

advances to t#o groups of companies aggregating to 7s$ 12,*..,... (thousand" have notbeen sub'ected to provisioning criteria as prescribed in P-s Prudential 7egulations

(Page25 I 2/ of +P 6onsolidation tatement

d- P3ODU*T 9IN#'

*%rrent Acco%nt:

&he Accounts shall be opened upon submission of duly filledin ank-s prescribed

Account +pening orm properly introduced in the manner provided and on submitting all

such documents as may be revised by the ank$ &he ank reserves the right to demand

such relevant documents even after opening of account as deemed necessary$

&he ank has the right to refuse to open an Account #ithout assigning any reason$

1.

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&he Accounts shall be opened #ith an initialminimum deposit as stipulated by the ank

from time to time unless specifically e3empted$

A distinctive number shall be allotted to every account and this number should be Duoted

in all correspondence relating to the account and at the time of making a deposit or

#ithdra#al$ &he ank reserves the right to change the Account

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accounts, for reactivation, the account holder must in person reDuest for a change of

status and #ill produce original 6

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!nlimited free of charge A&M #ithdra#als from anKs o#n A&MKs #ill be allo#ed$ %n

case of #ithdra#als from A though the A&M Machine of other anks, the 6harges of

these anks shall be applicable for such transaction$

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Personal >oan

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0issan dost Model airy arms

0issan ost Model Milk 6ollection 6entre

inancing for Potato @ro#er

0issan ost @reen House inance acility

0issan ost 6old terage inance acility

@reen &ractor cheme )1125)11>

(8 P9' Acco%nt

&he Accounts shall be opened upon submission of duly filledin ank-s prescribed

Account +pening orm properly introduced in the manner provided and on submitting all

such documents as may be revised by the ank$ &he ank reserves the right to demand

such relevant documents even after opening of account as deemed necessary

&he ank has the right to refuse to open an Account #ithout assigning any reason$

&he Accounts shall be opened #ith an initialminimum deposit as stipulated by the ank

from time to time unless specifically e3empted$

A distinctive number shall be allotted to every account and this number should be Duoted

in all correspondence relating to the account and at the time of making a deposit or

#ithdra#al$ &he ank reserves the right to change the Account

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All moniesinstruments to be deposited in an account should be accompanied by a payin

slip sho#ing the title and number of the account$ &he entry of transaction shall be

authenticated by putting ank-s stamp under the 'oint signatures of t#o officers of the

ank on the payinslip and counterfoil thereof$ Ho#ever in case of branches #here teller

system has been introduced, teller only shell authenticate the transactions up to the

prescribed limits$

Withdra#als #ill not be allo#ed against postdated (payable on any future date" and stale

(.: months after issuance date" 6heDues and against uncleared funds$

Where any account is not conducted to the satisfaction of the ank, the account may be

closed #ithout any notice and the balance #ill be remitted to the depositor at the address

given by the Account Holder(s"$

P> avings Accounts may also be opened by charitable institutions, for Provident unds

and other funds of benevolent nature by >ocal odies, Autonomous 6orporations,

6ompanies, Associations, ocieties, 4ducational %nstitutions, irms etc$ and in all other

cases #here such accounts are reDuired to be opened under the orders of 6ompetent

6ourt of >a#

avings Account may be opened at a branch in any one name

e3cept in the name of a parent or guardian for more than one child or for keeping funds of

specified nature category by an entity, #ith the ank-s prior approval$

Profit payable or >oss recoverable on P> aving Accounts to be credited or debited #ill

be determined by the ank at its sole discretion on the basis of its net #orking results at

the end of each halfyear #ithin the time prescribed by P from the date of the close of

the halfyearly books of accounts of the ank$ &he rates of profits may vary from period

to period vi) Fanuary to FuneFuly to ecember each year$ 6alculation of Profit on P>

aving Accounts #ill be made for each calendar month on the lo#est credit balance of an

account bet#een the close of the :th day and the last day of the month$ Ho#ever, profit

accrued even for 7e$ 1 after deducting #ithholding ta3 #ill be payable to all Account

Holders$ When an account is 6>+4 before declaration of profit rates, the accrued

profit #ill be first credited in the account at the profit rates previously declared by the

ank$ Ho#ever, no recovery or payment of profit as a result of increasedecrease in the

1:

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rate of profit #ill be affected upon such A6 holders after announcement of halfyearly

profit rates by the ank$

Withholding &a3 at the rate notified by the @overnment of Pakistan from time to time

#ill be deducted out of profits payable to the Account Holders$

JA0A& is leviable on the assets as described in the Jakat I !shr +rdinance 1=/. (as

amended from time to time" on balances #hich #ill fall #ithin the definition of )akatable

assets as notified by the @overnment of Pakistan on valuation date each year, provided

eclaration (originalattested photocopy" for e3emption from compulsory deduction of

)akat is filed on the prescribed Performa (6J9." in the prescribed manner one month

preceding the valuation date e3cept in the case of ne#ly opened accounts$

&he branches shall ensure completion of all the formalities reDuired by tate ank of

Pakistan vide Prudential 7egulation

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7s$ . upto 1.,... rate

7s$1.,..1 upto 2..,... 9 G p$a$

7s$2..,..1 upto 8..,... 5 G p$a$

7s$8..,..1 upto 9..,... / G p$a$

&his product is governed under P> rule of Profit I >oss sharing system$ &he rates

mentioned are e3pected and the ank reserves the right to revie#revise the profit rates

Duarterly$

Ma3imum profit N /$. G p$a$ as per different slabs shall be paid on minimum monthly

deposit upto 7s$9..,...$ eposit can e3ceed 7s$9..,... but no profit #ill be paid on

amount over and above 7s$9..,...$

&he profit #ill be calculated on monthly basis based on the minimum monthly balance

maintained by the customer during that particular month$

&he profit #ill be credited on monthly basis in the respective account$

Profit once disbursed #ill not be recovered in case of decrease in rate at the time of

announcement of Half Cearly profit rates$ Ho#ever in case of rise in profit rate the

difference amount #ill be paid$

43isting senior citi)en account holders can also open account under this scheme$

%n case they #ish to close their e3isting P> or other account, same may be

allo#ed #ithout deducting account closure charges

Jakat #ill be deducted as per la# like any other savingprofit bearing account$

Withholding ta3 #ill be deducted from the profit as per la# in force

Preferably P> 'oint ac should be opened #ith special instructions of O4ither

or urvivor #hich must be 'ointly authenticated under full signatures of the Foint

Ac holders$

!nlimited transaction (debitcredit"

ree complimentary issuance of first A&Mebit 6ard

ree complimentary issuance of first 6heDue ook of 29 leaves

29 G reduction in rental charges of small or medium locker sub'ect to availability$

Priority banking especially in utility bills payment, counter service etc

1/

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&he product carries all characteristicsconditions pertaining to P> account i$e$

issuance of &&M&P+ etc as per ank-s chedule of 6harges e3cept payment of

profit #hich shall be paid on monthly basis on minimum monthly deposit upto

7s$9..,... only as per admissible rates sho#n against each minimum monthly balance$

;harayloo 'a&in! Acco%nt

&his is a saving bank product available for all females #ho are eligible to open a saving

account as per our ank-s criteria$ &he account can be opened singly or 'ointly #ith

husband$ &his product is designed to attract procure depositsavings of ladies particularly

house#ives of e3patriates I students$

&he Main eatures are?

A customer can open only one +P @harayloo aving Account singly or 'ointly

regardless of the branch$ %n case it is found out that more than one account e3ists under

this category, the ank reserves the right to recover I forfeit the profits paid or not to

give any profit$

&he account can be opened #ith a minimum initial deposit of 7s$1.,...$ Ho#ever in

case average deposit during the month falls belo# 7s$1.,..., account maintaining

charges shall be levied as per ank-s chedule of 6harges

&he profit slab is as follo#s?

Minimum monthly balance 43pected rate of profit

7s$ . upto 1.,... declared

rate

7s$ 1.,..1 upto 29.,... 5$29 G p$a$



Duarterly$

Ma3imum profit N 5$29 G p$la$ shall be paid on minimum monthly deposit upto

7s$29.,... but over 7s$1.,...$ eposit can e3ceed 7s$29.,... but no profit #ill be

paid on balance over and above 7s$29.,...$



1=

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&he profit #ill be credited on monthly basis in the respective account$

Profit once disbursed #ill not be recovered in case of decrease in rate at the time of

announcement of Half Cearly profit rates$ Ho#ever in case of rise in profit rate the

difference amount #ill be paid$

43isting females account holders can also open account under this scheme$




Withholding ta3 #ill be deducted from the profit as per la# in force$



Ac holders$

!nlimited transaction (debitcredit"$

ree complimentary issuance of first A&Mebit 6ard

29 G reduction in rental charges of small or medium locker sub'ect to availability

Priority banking especially in utility bills payment, counter service etc

&he product carries all characteristicsconditions pertaining to P> account

i$e$ issuance of &&M&P+ etc as per ank-s chedule of 6harges e3cept

payment of profit #hich shall be paid on monthly basis on minimum monthly

deposit upto 7s$29.,... only as per admissible rates sho#n against each

minimum monthly balance$

?iada M%na,a sa&in! Acco%nt

&his is a saving bank product available for general public i$e$ persons #ho are eligible to

open a saving account as per our ank-s criteria$ &he account can be opened singly or

'ointly$ &his product is designed to attract procure depositsavings of general public

particularly salaried and small investors$

A customer can open only one +P Jiada Munafa aving Account singly or 'ointly

regardless of the branch$ %n case it is found out that more than one account e3ists under

2.

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this category, the ank reserves the right to recover I forfeit the profits paid or not to

give any profit$

&he account can be opened #ith a minimum initial deposit of 7s$1.,...$ Ho#ever in

case average deposit during the month falls belo# 7s$1.,..., account maintaining

charges shall be levied as per ank-s chedule of 6harges$

&he profit slab is as follo#s?

Minimum monthly balance 43pected rate of profit

7s . upto 1.,... rate

7s$1.,..1 upto 2..,... 8$. G p$a$

7s$2..,..1 upto 8..,... 9$. G p$a$

7s$8..,..1 upto 9..,... 5$9 G p$a$



Duarterly$

Ma3imum profit N 5$9 G p$a$ as per different slabs shall be paid on minimum monthly

deposit upto 7s$9..,...$ eposit can e3ceed 7s$9..,... but no profit #ill be paid on

amount over and above 7s$9..,...$



&he profit #ill be credited on half yearly basis in the respective account as per rules of

P> $

43isting account holders can also open account under this scheme




Withholding ta3 #ill be deducted from the profit as per la# in force$



Ac holders$

!nlimited transaction (debitcredit"

ree complimentary issuance of first A&Mebit 6ard$

21

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&he product carries all characteristicsconditions pertaining to P> account including

payment of profit on half yearly basis i$e$ issuance of &&M&P+ etc as per ank-s

chedule of 6harges on minimum monthly deposit upto 7s$9..,... only as per

admissible rates sho#n against each minimum monthly balance$

P9'5'a&in! Pro,it Pl%s Acco%nt

%ndividuals, corporations, organi)ations and various provincial federal government

departments can open accounts under the scheme$

&his is an operatingchecDuing account

&he accounts can be opened in individual or 'oint names$

&he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land$

Average balance during a calendar month #ill be taken to determine the deposit slabs and

applicable profit rate for that month for the purpose of creating provisons$ Ho#ever, in

case the average balance in any month falls belo# 7s$ 1(M" being the minimum slab, the

account for that particular month #ill be treated as an ordinary Plssb account and profit

#ill be calculated on minimum balance during the month at the normal rate declared for

Pls sb account$

Profit payable on half yearly basis$

*or+orate Pre"ier Acco%nt

&his account has been introduced for corporate clients$

&his is an operatingchecDuing account

Profit on the account #ill be calculated on daily product basis by determining the slab on

the basis of average balance maintained in the account$

&he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land

22

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Profit payable on monthly basis$

*or+orate Pre"ier Ter" Acco%nt

&his account has been introduced for corporate clients$

&his is non operatingchecDuing account

Minimum amount of investment is 7s$9..(M"$

&he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land$

Profit payable at maturity

M%na,a Hi M%na,a

&his is a term deposit product$ &he term is from 1 month to 9 years and theprofit is paid

on monthly basis$ &he minimum amount of deposit is 7s$1..,...$ &he rate of profit is

from /$. G p$a$ to 12 G p$a$ depending on the tenure #hich is higher than ank-s normal

term deposits as follo#s?

2*

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&erm 43pected Profit

7ates p$a$

Minimum

amount of

eposit 7s$

Profit payment on monthly

basis (With Holding &a3 to

be deducted"

*"onth 1.$.. G 1..,... 7s$/**:"onths 1.$9 G 1..,... 7s$/59

1year 12-11 @ 1..,... 7s$1...

9year 1(-11 @ 1..,... 7s$1112

&his product is governed under P> rule i$e$ the rates mentioned are e3pected and the

ank reserves the right to revise the rates and terms I conditions of profit under Profit I

>oss sharing system$

P9' '%+re"e 'a&in! Acco%nt

%

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>ockers

(smallmedium"

availability availability

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2" &he reduction in rate of markup on 6onsumer finance #ill be on loan amount eDual to

t#ice of last months average balance$

*" %n order to further facilitate the managers in targeting customers, it #ill be at the

discretion of the manager to offer the incentive package from day one$ Ho#ever it #ill be

the responsibility of the branch ensure that customer completes the criteria as per above

table other#ise recover the charges #aived$

8" &he incentive package #ill be revie#ed on Duarterly basis$ &he ank reserves the right

to change, modify the package$

9" &he rate of profit #ill be same as per ank-s declared rate of P>

BOP TIJA3AT A**OUNT 69*8

%

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tatement limit

ree 7ental

6harges for

>ockers

(smallmedium"

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deptt on ac

holders

behalf for

earnestbid

money by

debiting o#n

account

holders or on

other

contractor-s

behalf for

earnestbid

money by

debiting o#n

account

holders or on

other

contractor-s

behalf for

earnestbid

money by

debiting o#n

account

CONSUMER

FINANCING

7eduction in

processing charges

from 1. to 9. G

upto 1.G

upto 29G

upto 9.G

7eduction in rate

of markup upto 9.

bps

upto 29 bps

upto 8. bps upto 9. bps

N-B- 1" &he rent free locker facility #ill be allo#ed on availability of locker and after

maintaining average balance for si3 months$

2" &he reduction in rate of markup on 6onsumer finance #ill be on loan amount eDual to

t#ice of last months average balance$

*" %n order to further facilitate the managers in targeting customers, it #ill be at the

discretion of the manager to offer the incentive package from day one$ Ho#ever it #ill be

the responsibility of the branch ensure that customer completes the criteria as per above

table other#ise recover the charges #aived

8" &he incentive package #ill be revie#ed on Duarterly basis and on the deposit procured

visRvis cost benefit, package can be revised do#n#ard$

9OAN P3ODU*T'

2/

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(8 *OMM#3*IA9 FINAN*#

(8 3%nnin! Finance

a" A!ainst Pled!e o, 'hares

b" A!ainst ;o&ern"ent 'ec%rities

c" A!ainst Hy+othecation o, 'tocks

)8 De"and Finance

6redit facilities e3tended against registered mortgage of property (i$e, landbuildings

constructed or to be constructed" is by nature classified as a ecured Advance$ A formal

charge on the property is established and recorded #ith the 7egistrar >and and Property

termed as registered mortgage$ Advances are also made against eDuitable mortgage of

property, #hereby the original title eeds, are deposited #ith the ank as ecurity and

the charge is registered #ith the 7egistrar 46P$

%n case the inance is allo#ed to >imited 6ompanies, #here the original title documents

of >anduilding and other i3ed Assets are held by the senior charge holders, our

charge (PariPasu or ranking" as approved by 6redit 6ommittee, shall be recorded #ith

the 7egistrar ecurities I 43change 6ommission of Pakistan (46P"$ Ho#ever, in case

of PariPasu 6harge,

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)8 *ON'UM#3 FINAN*#

a8 %ick cash

op Duick cash is running finance facility provided to the salaried persons through their

bank accounts$ 6ustomers can #ith dra# bet#een 7s$ 9.,... to9..,... based on their

salary$ An eligibility criterion for customers as #ell as customers is minimum 7s$ 19...

take home salary$

b8 Ho%se loan

alaried persons #ith maintaining account #ith bank can avail this facility #ith

minimum take home salary 7s$19... per month$

c8 Bo+ car loan

@ovt$ or private employees, business men and professionals can avail the op car loan

facility$ &hey can avail loan amount from 2..,... to 9.,..... and duration of tenure is

from 1 to 9 years$

d8 '"art cash +ersonal loan

acility for bank-s target market for meeting their personal needs repayable through

monthly installments$ Ma3imum limit of loan is 7s 9..,... #hich is eDual to 29 take

home monthly salaries$ Ma3imum duration of tenure is 9 years$

9ease Finance Facility ,or P%rchase o, Tractor %nder ;reen Tractor

'che"e )1(15)1((

%n the #ake of 6hief Minister, Pun'abKs agenda for promotion of Agriculture ector,

@overnment of Pun'ab has decided to provide 1.... &ractors to small farmers on

subsidi)ed rates$ A subsidy of 7? 2..,... per tractor #ill be provided to the farmers

declared successful through computeri)ed balloting$ &he scheme has been titled as

E@reen &ractor cheme 2../.=E$ %n order to facilitate farmers and to grasp ma3imum

business, our Management has approved a special product titled as E>4A4 %

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#9I;IBI9IT

All armers #ho have been declared successful through computeri)ed balloting$

&he applicant should be a resident, o#nerself cultivator of minimum .9 Acres of agri

land free from all encumbrances$ 43isting +P borro#ers having land under ankKs

charge are also eligible under this scheme$

&he applicant should not be a defaulter of any inancial %nstitution$

KI'AN DO'T A;3## FINAN*# '*H#M#'

P%r+ose:

Provision of financial facility to farmers for purchase of inputs (eed, fertili)ers,

pesticides, fungicides etc"$

#li!ibility:

7esident elf 6ultivator having ma3imum 9. acres$ &he applicant should not be defaulter

of any other ank and property should be free from any encumbrances

A"o%nt:

Ma3imum 7s$9..,... according to per acre limit of the crop$

'ec%rity:

6harge on Agriculture >and through Agri$ Pass ook$

O3

7egistered 4Duitable mortgage of !rban property assessed by PA-s approved

surveyor and cleared by ank-s legal counsel$

O3

>iDuid security in the shape ank-s i3ed eposited 7eceipts6

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to farmers on rental basis for various tractor related operations", for purchase of &ractor

on >ease$

Finance Basis-

#li!ibility:

7esident elf 6ultivator having

A"o%nt: Ma3imum 7s$ 59.,...$

#C%ity:

1.G to 2.G of the cost of &ractor #ill be paid by the borro#er on case to case basis$

'ec%rity:

1$ >ease &ractor (to be registered in the name of ank"

2$ 6harge on Agriculture >and through Agri$ Pass ook$

*$ +ne personal guarantee of reputable person$ o #ritten satisfactory

market checking reports$

Mark5%+: 19G per annum$

3e+ay"ent: 1. eDual half yearly installments (#ithin five years"$

KI'AN DO'T AAB3A3I '*H#M#

P%r+ose:

Provision of financial facility to the farmers for installation of &ube #ell, turbines etc$

#li!ibility:

7esident elf 6ultivator having ma3imum 9. acres$

A"o%nt: Ma3imum 7s 9..,...$

#C%ity? 2.G of the cost of pro'ect #ill be paid by the borro#er$

'ec%rity:

1$ >ease Assets i$e$ 4ngine, &ube #ell and other related implements (&he2$ vendor #ill issue receipt in the name of ank"$

*$ 6harge on Agriculture >and through Agri$ Pass ook$

8$ +ne personal guarantee of reputable person acceptable to ank$

9$ o #ritten satisfactory market checking reports$

**

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Mark5%+: 19G per annum$

3e+ay"ent: /1. eDual half yearly (#ithin four to five years"$

*lean *o""%nity4;ro%+ Financin! 6Prod%ction 4De&elo+"ents

9oans8 To '"all Far"ers ;ro%+ %nder Kissan Dost 'che"es

&he said scheme #ill be group based financing scheme for small farmers #ho do not

have tangible security to offer to banks as collateral$ &he scheme has been structured on

group based lending approach #herein banks can finance to individuals through mall

armer @roups$ With the success stories of innovative lending techniDues like @roup

based>ending (@rameen Model", elf Help @roups (%ndian Model", olidarity @roup

(>atinAmerica Model", 6ommunity based +rgani)ation (;illage anking" and other

approachesS there is paradigm shift in the lending methodologies to the

smallfarmersborro#ers$ &he @rameen of angladesh, ank for Agriculture and

Agricultural 6ooperatives (AA6", &hailand and ank 7akyat %ndonesia (7%", have

proved to be most successful agrirural sustainable financial institutions serving mostly to

small farmers$ &he success of these financial institutions has broken the myth that people

#ithout tangible assets can neither pay the real cost of credit, nor save, and in general are

poor credit risks$

P%r+ose

&he scheme #ill target farming community involved in small agri related activities ie

livestock, dairy, poultry, fisheries, horticulture etc

SERVICES

&hese are the services provided by the +P$

A&M acility

>etter of 6redit

Pay +rder

+n>ine anking

*8

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4anking

ebit 6ard

6onsumer inancing

Agriculture inancing

6orporate inancing

6ommission free 7emittance

emand rafts

6ollection of !tility

>ockers acility

A%to"ated Teller Machine 6ATM8

&hrough the A&M-s 6ustomers have access to the various services such as #ithdra#al,

balance enDuiry and mini statementT 6omplete security is ensured because access to the

account is only possible by entering a four digit personal identification number (P%

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from a bank branch$

9etters o, *redit

+P is offering its business customers the #idest range of option in the area of money

transfer$ +P-s letter of credit service is #ith competitive rates, security, and ease of

transaction, +P >etter of credit is the best #ay to do the business transactions$

Pay Order

+P provides transfer of money using different facilities$ %ts pay orders are a secure and

easy #ay to move the money from one place to another$ &he charges for this service are

e3tremely competitive$

Mail Trans,er

Moves money safely and Duickly from +P Mail &ransfer service$ &he rates for this

service is Duiet impressive as compare to the market$

'hort Ter" In&est"ent

+P offers e3cellent rates of profit on all its short term investment accounts$ &he

packages are starting from * months$ +P-s rates of profit are e3tremely attractive, along

#ith the security and service only +P can provide$

A!ric%lt%ral Finance

%t help farmers utili)e funds efficiently to further develop and achieve better production$

Provides farmers an integrated package of credit #ith supplies of essential inputs,

technical kno#ledge, and supervision of farming

*o""ercial Bankin!

&he 6ommercial anking @roup has been formed to cater the needs of small I medium

si)e customers for increasing ank-s business significantly #ith clear focus,

repositioning of resources and active marketing to improve ank-s profitability$

6ommercial anking #ill deal #ith customers having sales turnover and aggregate credit

e3posure as per benchmarks prescribed in the P-s Prudential 7egulations$

*:

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&his @roup-s emphasis #ill be to meet necessary business needs of customers #hich are

numerous as compared to 6% clients but their individual credit reDuirements are

relatively much smaller$ %n vie# of this peculiar nature of this business segment that

involves a higher turn over a much #ider net#ork is needed$ &he M4 #ill concentrate

on rebuilding its set up #hich suits to its peculiar needs on all locations$

Corporate Banking

&he +P 6orporate anking endeavors to market ne# clients and retain the e3isting

relationships and build market share through offering superior services, competitive

pricing and #ide product range to valued corporate clients including Multi imited

arclays P>6

a#ood %slamic ank Pakistan >imited

ubai %slamic ank Pakistan >imited

*5

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4mirates @lobal %slamic ank >imited

aysal ank >imited

Habib ank >imited

Habib Metropolatin ank

Arif Habib ank

0ashf Microfinance ank

F ank

0A ank

Me))an ank >imited

My ank (olan bank"

imited

oneri ank >imited

tandard 6hartered ank

&ameer Microfinance ank

!nited ank >imited

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*=

6orporatehead

6ommercial

head

6onsumer

head

7etail

head

Head office

7egional

office

ranch

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8.

H#AD

OFFICE

REGIONAL

OFFICEBRANCH AREA OFFICE

MANAG

ER

OPERATIOS

DEPTT.CREDIT DEPTT.

OPERATIONS MANAGERRELATIONSHIP MANAGER

SME

RELATIONSHIP MANAGER

CONSUMER

REMITTANC

E

OFFICER

CLEARING

OFFICER

ACOUNTS

OFFICER

CASH

DEPTT.

PAYMENTCASHIER

RECIEVERS CASHIER UTILITY BILLSCOLLECTION

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b- N%"ber o, #"+loyees:

6urrently 8... employees are #orking in bank of Pun'ab both genders$

/=G male and 11G #omen$

Estimated based on LinkedIn Data

c- Main O,,ices-

Head +ffice and the main branch of +P is in @ulberg *, >ahore I 4gerton, >ahore

7espectively$

&he ank has been divided into seven regions

4ach consisting a number of branches$

9ahore 3e!ion

Faisialabad 3e!ion

;%/ranala 3e!ion

3aal+indi 3e!ion

Karachi4%etta 3e!ion

M%ltan 3e!ion

Peshaar 3e!ion

A number of online branches #orking under these regions$ Which are almost 252 in all

over Pakistan$

d- Introd%ction o, all De+art"ents-

OP#3ATION' D#PA3TM#NT:

+perations department manages all departments of bank e3cept credit department$

+perations Manager is responsible for all operations of cash department, remittance

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T#9#;3APHI* T3AN'F#3:

%t deals #ith transfer of funds by telephone$

ON9IN# T3AN'F#3:

%t is modern techniDue for transfer of funds$ &he modern concept of only banking has

given it a ne# dimension through #hich money is transferred from one place to another

#ithin no time, even one country to another country, it takes hardly a fe# minutes$

*9#A3IN; D#PA3TM#NT:

WHAT I' *9#A3IN;

&he mechanism and system of obtaining the process of cheDues and other instruments

deposited by the customer dra#n on other banks #ithin the cityclearing net#ork$

TP#' OF *9#A3IN;:

Inard *learin!

O%tard *learin!

*9#A3IN; D#PA3TM#NT:

%n clearing department the cheDues of +P and other banks are presented for clearing

through

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Ty+es o, clearin!:

ame day clearing

%ntercity clearing

%n #ard clearing

+ut #ard clearing

'a"e day clearin!:

%n same day clearing cheDues of other branches are presented by the account holder of the

+P$ the bank clear those cheDues through

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&he branches do local fund transaction by mean of cash orders payment orders issued on

behalf of the purchaser desirous of effecting payment in this #ay or by the branches for

settling their obligations$ &he application for purchase of cash order by cash as #ell as by

the cheDues$ eparate registers are maintained for all these transactions, #here send and

receive of all these documents are recorded$

ON9IN# INT#3 B3AN*H T3AN'A*TION' P3O*#DU3#:

Introd%ction:

+nline inter branch transaction is a facility #hereby customers maintaining accounts in

+nline branches #ould be able to operate their accounts from any of the online branches

across the country$

&he online service is being called %7%nter ranch transaction$ pecifically, an online

branch #ill offer the follo#ing transactions to account holders of other online branches?

alance enDuiry$

6ash deposit#ithdra#al

&ransfer of fund$

tatement of A6 (displayprint"

%n addition, online branches #ill also be able to issue A&M 6ards to their o#n account

holders$ A special option has been made available in the computer system in +nline

ranches to accept transactions meant for another +nline ranch$ &he online transactions

#ill only be accepted during fi3ed hours, presently the cutoff time is 19*. hours on

#eekdays and 1*.. hours on aturdays$ A complete audit trial of all transactions posted

remotely #ould be available both at the estination ranch and the +riginating ranch$

&he +riginating ranches must tick all the online transactions #ith the voucher

documents, as being done for local transactions$

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DA #ND:

ay end is a document maintained by the bank$ %t contains the record of each day

transaction$ 4very small to large transaction is recorded in it$ &he bank maintains this

record in form of printout and sends it in a cassette to the head office$ &his is done on

daily basis$

*A'H D#PA3TM#NT

6ash department deals #ith

*ash 3ecei+ts

*ash Pay"ents

Utility Bills *ollection

6ash department is the backbone of the bank$ As all banking business is based on cash$

6ash receipts include customer deposits, payments include cash #ithdra#als and utility

bills include telephone, gas, electricity and other bills collection$

9O*K#3' D#PA3TM#NT:

%t deals to safe the proceedings of customers$ >ocker is also called afe eposit ;ault$

6urrently +P is providing 43tra %nsurance cover to customers$ 6ustomer is fully

responsible for hisher locker-s proceeds$ ank is only custodian for these proceedings$

8:

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*3#DIT D#PA3TM#NT:

%t deals #ith

*o""ercial loan

*ons%"er loan

'M# loan

e- *o""ents on Or!ani.ation 'tr%ct%re-

%n +P the flo# of designations and po#er is #ell arranged and from top to bottom$

=- P9AN OF INT#3N'HIP P3O;3AM

Introd%ction o, the Branch here I did "y Internshi+:

&he ank of Pun'ab &oba &ek ing ranch is the oldest branch in the district$ &he

ranch is situated in the most competitive and commercial area of the city (&oba &ek

ing" Machli a)ar #here other banks like Alflah ank, Habib ank, aisal ank, Al

Habib ank, &" are situated so creating a

rivalry among competitors$

%ts ma'or customers are @ovt$ and semi govt$ institutions like &4;&, vocational institutes,

schools and colleges etc$%n the said branch is consist of / clerical and 8 non clerical staff

&here the 8 branches in the istrict and the ank of Pun'ab &oba &ek ingh (..2:" is on

the 1stin respect of its investment more than :.. million$ %n the region it is on the 8 th

number$ At present A&M has been installed during the period of my internship and this

provide an advantage to the branch$

'TA3TIN; AND #NDIN; DAT#' OF INT#3N'HIP-

.152.1* to =./2.1* (inclusiveUUU both"

NAM# OF D#PA3TM#NT' WH#3# I ;OT T3AININ; 4 DU3ATION OF

T3AININ;:

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eposit department, oreign remittance epartment$ &he duration of my internship #as 5

#eeks$

G- T3AININ; P3O;3AM

a- Detailed Descri+tion o, the o+erations4acti&ities +er,or"ed in the BOP shah r%kn

e ala" "%ltan Brach.

OP#3ATION' D#PA3TM#NT:

% have #orked in eposit department #hich is under the control of operation department

or sub department of operation department$

+perations department manages all departments of bank e3cept credit department$+perations Manager is responsible for all operations of cash department, remittance

department and clearing department$ +pening of ne# accounts, closing of )ero balance

accounts, updating all operational records etc$ is done in operations department$

eside these foreign payments to customers via online transactions is also the function of

deposit department$ or this purpose

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#here % have to perform follo#ing tasks?

% did the duty of +pening

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6. 'tr%ct%re o, the Finance De+art"ent

a- De+art"ental Hierarchy-

&he management of +P comprises of t#o types

6hairman-s ecretariat

President ecretariat$

6hairman-s secretariat deals #ith finance division$

Mr

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operations of finance$ &he inance epartment provides a range of financial support

services$ &hese services include the management of the 6ouncilKs finances, financial

reporting, budgeting, accounting, financial advice, ledger and accounts maintenance,

financial systems, treasury management and ste#ardship matters$ &he service is also

responsible for all enefits #ork, the collection of sundry debts, %ncome ervices and the

collection of 6ouncil &a3 and usiness 7ates$ All aspects of insurance and risk

management advice, together #ith the payment of suppliers complete the range of

services provided$

imilarly preparing income statements, balance sheets, cash flo#s, calculating

mark up interest rates, employee-s salary accounts, passing debit and credit entries in

ledger, income and e3penditure accounts are the accounting operation for the said

organi)ation$ &he finance department deals in authenticity of cheDues, proper utili)ation

of funds, preparation of day end statements, online banking, collection of mails, opening

I closing account of customers I companies etc$

F%nctions o, Finance De+art"ent-

a8 Acco%ntin! 'yste" o, the or!ani.ation

+P maintains its accounts on the basis of @AAP (general acceptable accounting

principals"$ &he ank maintains its accounts according the companies ordinance 1=/8$

All account officers #ork under the operation manager in operation department, and

submit daily, #eekly , monthly and annual statements to the head office or as demanded

by the Head +ffice$&he mission of the Accounting epartment is to provide accounting services and

financial support to the +P$ &he epartment of Accounting consists of si3 divisions$

4ach division listed belo# performs specific functions that enable the department to

provide accounting services$

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Acco%ntin! Ad"inistration

+verall administration of the department including policies and procedures,

insuring internal control, budgetary responsibility, and personnel$

Payroll

7esponsible for the proper payments and maintaining necessary records for all

!& outh#estern Medical 6enter employees$

*ash Mana!e"ent

7esponsible for the receipt and investment of monies, customer relationships and

general cashier operations$

;eneral Acco%ntin!

6onsists of Accounts Payable, receivables etc$

3e+orts

7esponsible for preparing reconciliation and reports for use in analy)ing various

financial functions of the !niversity$

Acco%ntin! O+erations

7esponsible for the vouchers, %7Ks, reconciliation of accounts, statements, ob'ect

codes etc$

Accounting departments typically handle a variety of important tasks$ uch tasks ofteninclude invoicing customers, accounts receivable monitoring and collections, account

reconciliations, payables processing, consolidation of multiple entities under common

o#nership, budgeting, periodic financial reporting as #ell as financial analysis$ Also

common are setting up adeDuate internal controls for all business processes (to prevent

theftmisappropriation of assets", handling e3ternal audits and dealing #ith banks in order

to obtain financing$ &a3es are sometime handled by accounting departments in house,

but this #ork is often contracted to outside ta3 accountants$

b8 Finace syste" o, the or!ani.ation

inance is the life blood of any organi)ation$ %t includes the generation and circulation of

cash$ &he ank of Pun'ab carries its financial matter on the basis of company-s ordinace

1=/8$$ &he finance department deals in authenticity of cheDues, proper utili)ation of

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funds, preparation of day end statements, online banking, collection of mails, opening I

closing account of customers I companies etc$

%n finance system of +P follo#ing functions are performedS

inancial ervices

Provides a full range of mainstream accounting and financial services and to service

managers, including the production of the statement of accounts and annual budget,

financial reporting, financial advice, ledger and accounts maintenance, financial systems,

treasury management and ste#ardship matters$

7evenues

Audit and %nsurance

%nternal Audit services

Procurement

&he Procurement section provides advice on procurement and contractual matters for all

departments$

$

c8 Use o, electronic data in decision "akin!

+P ma3imi)ing profitability and stoke holder-s value by increasing #orkers efficiency$

&his has done by decreasing operating e3penses by using the technological eDuipments

like computers$ 4lectronic data gives e3act values and figures #hich top level

management reDuired$ ecause of electronic data they came across to kno# those minute

things #hich impact a lot on final place$ &hrough this they can measure e3act profit and

loss accounts, assets and liabilities up to a branch level from #here they can decide #hich

should be kept and #hich should not$

&hrough this top level management is able to decide #hich product should be taken into

course for further level or #hich should stop$

4lectronic data make management able to take decision at any point of time$

&he system has not totally shifted on computer$ Manual procedure is still there hence

computer facility is not fully availed$ &here should be a system at each counter for Duick

processing$

9*

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d- 'o%rces o, F%nds

&he ma'or sources of funds are?

P%blic 'o%rce

As the largest regional bank of Pakistan according to asset base #ith speciali)ed in

Agriculture has a large deposits #ith /.G from the rural areas of the Pun'ab$ &he anks

ma'or source of funds is from the Public$

Money Market

igurative e3pression for the informal net#ork of dealers and investors over #hich short

term debt securities are purchased and sold$ Money market securities generally are highly

liDuid securities that mature in less than one year, typically in less than ninety days$

*or+orate treas%ries and ;o&ern"ent Instit%tions

6orporate sector is one of the ma'or sources of funds in all types of anking$ All ma'or

organi)ations, financial institutions and government I private organi)ations are the

ma'or sources of the funds e$g$, WAPA$

e- Allocation o, F%nds

+P-s funds are allocated to the follo#ing departments$ &he banks ma'or focus is on

short term financing$ Ma'or allocation of funds is on these divisions$

9on! Ter" Financin!

>ong term financing includes tenure more than one year$

'hort Ter" Financin!

hort term financing includes period less than one year$ &he banks ma'or focus is on

short term financing$

rom the above it is further sub distributed to

1$ M4 ivision

2$ Agriculture financing

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*$ 6onsumer financing

8$ 6orporate financing

&he distributions of funds to these departments are anks internal matter and they avoid

to disclose$ &hrough inancial tatements it is only possible to analy)e long term and

short term financing$

A!ric%lt%re ,inancin!

&he bank provides adeDuate and timely financial assistance to the farmers to improve

production potential of agriculture sector$ %nsurance of leased assets, animals, crops and

life assurance of borro#ers are all source of money for the bank$

#5Bankin!

&he bank has a centrali)ed database that is #ebenabled$ All the services that the bank

has permitted on the internet are displayed in menu$ Any service can be selected and

further interaction is dictated by the nature of service$

Utility bills

&he bank also makes possible the payment of electricity, gas and telephone bills for its

customers charging some commission on each payment$

9ockers

6ommission charged on lockers provided by bank for customers, is also a source of

inflo# for the bank$

*ons%"er ,inancin!

Personal inance, mortgage finance, business finance, smart cash, auto financing and

travelers cheDues are all sources of funds for the bank$ &he bank finances all these loans

and facilities on competitive mark up rates$

2- *ritical Analysis

(&he amounts have been presented in millions of Pakistan rupees$"

'WOT Analysis

W+& analysis is one of the most important steps in formulating strategy using the

organi)ation mission as a conte3tS managers assess internal strengths distinctive

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competencies and #eakness and e3ternal opportunities and threats$ &he goal is to then

develop good strategies and e3ploit opportunities and strengths neutrali)e threats and

avoid #eaknesses$

W+& analysis is an acronym that stands for strengths, #eakness, opportunities, and

threats W+& analysis is careful evaluation of an organi)ation-s internal strengths and

#eakness as #ell as its environment opportunities and threats$

OW+& analysis is a situational #hich includes strengths, #eaknesses, opportunities and

threats that affect organi)ational performance$

%n W+& analysis the best strategies accomplish an organi)ation-s mission by?

1$ 43ploiting an organi)ations opportunities and strength$

2$

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>ack of proper internal controls is one of the ma'or #eakness of +P$ %t is also

pointed by the auditor in his revie#$

+P has formuli)ed a lot of products and services for its customers, even more

than other commercial banks, but any advertisement on electronic media has not

been seen$

% observed during my internship that some of the employees #ere burdened #ith

over #ork$ o % think that the #ork should be distributed according to their post

and capabilities$

As each staff member performs many duties in one time so this capture e3tra time

#hich can slo#s do#n the performance$

ue to lack of #orkplace, staff members as #ell as the general public face

disturbance in the bank$

Biased selection of employees.

#T#3NA9 A''#''M#NT:

ENVIRONMENTAL OPPORTUNITY:

&he ank of Pun'ab compete its competitors by encouraging agriculture loans$ o

in such a #ay it plays an important role for promotion of agriculture sector$

All the opportunities of the 21st century are to be availed in the information

technology$ %nformation technology is the future of this dynamic #orld$ &herefore

+P should emphasi)e much on %&, especially on 4anking$ ank can design a

universal account like other foreign banks, to enhance online facilities.

ank also encourages industrial sector$ o in such a #ay most of industrialists

deal #ith Pun'ab ank as a result ank maintains large si)e of deposits$

Ho#ever the year 2.1* #ill prove to be another challenging year for the bank

#ith scattered opportunities and tough competition$ iversification, innovation

and mission driven approach are the key to success$

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Management of the bank is committed to continue its efforts for outstanding

performance$ %mprovement in stakeholders- value shall be ensured through

progressive but cautious business e3pansion #ith strategic branch net#ork

e3tension and introduction of innovative products in all areas of business$

+P has introduced a number of financial schemes including special Veposit

Accounts-$ &hese accounts have their uniDue features$ uring the last three years,

+P deposits have been increasing N 8.G, #hich is a very healthy sign$

&herefore, #ith the commencement of ne# schemes there can even be a greater

increase in its deposits$

@reat opportunity of starting %slamic banking system$

ENVIRONMENTAL THREAT:

6urrently &he ank of Pun'ab is facing ma'or threat in Pakistan that is private

businessmen do not prefer the ank of Pun'ab due to the standard as compare to

private bank$

+P is facing a strong competition by its competitors, usiness of all these anks

are gro#ing at very high pace$

espite the difficult circumstances that confronted the banking sector in particular

and the country in general, +P has been still highly profitable$ ut, the facts

can-t be denied and there might be an adverse impact of such situation$ %n recent

Hameesh 0han (Previous President raud" is an e3ample$

>o# security, economic and political instability$

*ON*9U'ION

While making an analysis of &he ank of Pun'ab, as a financial institution, #e find that

this institution came into e3istence in pursuance of ank of Pun'ab Act, 1=/= passed in

the legislative Assembly of Province of Pun'ab$ %n the short span of about 19 years, it

becomes the fifth largest bank in the county #ith 252ranches net #ork all over the

9=

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country$ % have suggested some recommendations in the light of ratios and W+&

analysis$ +P has negative #orking capital in all the three years so it is essential to

increase current assets and reduce investment in fi3ed assets$

While having an opportunity to go for internship at the branch, % have observed the

follo#ing reservations?

&he ranch is housed in small a banking premises #hich does not suffice the

reDuirements of visiting clientele as #ell as corporate clients of the ank$ y having a

glance over the current business of the branch, the same should immediately be shifted to

some spacious building so that best banking services can be offered to the bank

customers$ Moreover, though the branch is automated yet reDuired number of P6s etc has

not been provided resultantly, the staff has to #ait their turn to accomplish their daily 'ob$

inally there is a immediate need for A&M Machine at present era$

3#*OMM#NDATON'

Internal *ontrols

&he ma'or and the most important fla# in the +P is lack of internal controls and inter

communication bet#een different branches of the bank$ As far as financial aspect is

concerned there is no proper system is configured that-s #hy there is al#ays a risk of big

frauds #ith in the bank$ % during my internship also pointed out that point but no one

bothered$ &o me the bank should install some proper resource planning and controlling

systems like other banks do i$e$, oracle financials etc$

Pro,essional Trainin!

+P staff lacks professionalism$ &hey lack the necessary training to do the 'ob efficiently

and properly$ Although staff colleges are in all ma'or cities of the Pun'ab but they are not

performing #ell$ or this purpose these staff colleges should be reorgani)ed and their

syllabus should be made in such a #ay #hich can help the employee understand the ever

changing global economic scenario$

anking council of Pakistan should also initiate some programs to eDuip the staff #ith

much needed professional training$

Dele!ation o, A%thority

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4mployees of the bank should be given a task and authority and they should be asked for

their responsibility$ &he sense responsibility in employees mind is one of the most

important factors in the success of any organi)ation$

Per,or"ance A++raisal

uring %nternship % felt that there is no or very less appraisal of any ones cool

performance$ &he manager should strictly monitor the performance of every staff

member$ All of them should be a#arded according to their performance and result in the

shape of bonuses to motivated and incite them to #ork more efficiently$

To O&er *o"e Proble" o, '+ace and F%rnit%re

%n the critical analysis this, problem is discussed$ &o overcome this problem it is

suggested that a special section should be made inside the branch$ Which should only

handle the treasury function, salaries and pensions of federal personnel or the bank

should do these functions in the evening time$ Also management should purchase more

furniture and arrange them in such a #ay #hich provides ma3imum space and convenient

especially in deposit department and there should also be convenient sitting place for

customers$

Trans,er

&ransfer is not properly carried out$ ome of the employees are continually serving at the

same post$ &hey are simply rotated at the same branch$ &herefore it is recommended that

evenly rotation of every employee should take place after every three years in different

braches of the bank$

*han!es in Policies

&here should not be any abrupt policies change by the upper management, as this practice

hurts the customer confidences in the bank$ @overnment should make longterm policies

Need o, %ali,ied 'ta,,

7eDuired, Dualified staff should be provided to branch in order to improve the functioning

of the branch$ 4specially a telephone operator should be appointed$

Utility Bill *har!es

ank gets 7s$ 2 to * to processes a utility bill, and it is very tire, tough and hard 'ob

despite this #orking resulting in a loss to then 7s * to9 per transaction$ &hese charges

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should be increased to 7 1. per bill to enable the branch to cover their handling costs

and make some profit$

9ink ith the Head %arter

1.. ma'or branches of +P should established a direct link #ith the, head Duarter in

>ahore, through %nternet or %ntranet$ &his #ill make the functions and decision making of

the management easier and convenient$ &hough management has a plan to connect all

branches via W%MAB technology$ &his #ould really bring great future aspect$

*redit *ard

+P should start its operation in credit card$ &hese cards are very helpful for the ordinary

customer in general and the business people in particular$ &o make it mores secure and to

eliminate the misuse of it, the management is reDuired to keep proper security against the

card$

*lean 9oans

6lean loan or clean overdraft is the credit facility e3tended to the customers to the

customers #ithout any security$ &hese types of small term loans should not be e3tended

to anybody, because sometime these loans are provided to blueeyed people of the

management and they become a part of bad debts$

*ash Financin!

%n this mode of financing the amount of credit not utili)ed by the borro#er is remained

ta3free$ %t is recommended that a small amount of interest should be charged on this

amount as #ell because the bank gas keptaside the amount for that borro#er and can not

advance it any#here$

Decreasin! Ad"inistrati&e #$+enses

ank should decrease their administrative e3penses$ &his #as 7s$ 2$*. billion in the year

2..5$ &hat can be done by lying off the surplus pool of employee #ith golden hand

shakes scheme$ &he branches that are not much used could also be closed$ &hat #ill give

positive results in the future$

'ho%ld be A!!ressi&e in *redit Policy

As mentioned earlier, +P is very conservative in advances and loans policy$ %t reduces

the investment opportunities$ Also loans should be given to the small businessmen and

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the other businesses on large scale like in agriculture sector at the lo# markup rate$ %t

should adopt fle3ible credit policy #hile giving credit to the agriculture sector$

Technolo!ical Ad&ance"ent

% #ould like to suggest that at least all the main branches of +P should be fully

computeri)ed in order to e3pedite the dealing process among bankers and their

customers$ 4very department should be provided a computer #ith adeDuate training

(especially Advances, eposits and oreign 43change departments"$ aily records

should be entered directly into these computers, (instead entering the overall daily

transactions after the banking hours"$ %t #ill not only reduce transaction time, #ill

increase accuracy but #ill also be efficient as #ell$

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management they can cancel their transfer in fe# #eeks, #hen they are unsatisfied at that

place$

o % suggest that in the organi)ation there should be no favoritism, nepotism and politics

and their transfer and promotion should be made on merit and according to the rules and

regulations of the bank and provided favorable environment to the employee to sho#

their performances$

Inter De+art"ental Trans,er

% #atched during my internship that, there employees #ho have #orked on one seat for

many a year$ %t can have negative effects motivation of employee #ho is hard #orking

and intelligent$ &ake the e3ample of advances section$ %n advance section if the employee

is transfer after si3th month or seven month, ho# can he be able to sho# his

performances and ho# can he be able to kno# the bank customer in a short period of

time$

Marketin! Policy

&he branch should adopt various marketing strategy and promotion strategy to promote

the bank and its product$

&he most important in my opinion is personal marketingS it is the most effective of all

#hen you think in term of branch level$ ut on the #hole organi)ation level, they should

arrange the seminar #ith in the bank and outside the bank$ &hey should introduce various

pri)ing schemes 'ust like Allied ank$ 0aramad cheme, ank Alalah (monthly

income earning scheme" and various others$

&hey should do more advertising through ne#spaper and media and through channel of

personal contacts$

*o"+laints o, *%sto"er

&here should be an information desk to provide the information and to receive the

complaints of the customer in the bank$

&here is no complaint bo3 available in the branch and not any person appointed to hear

the complaints$

4very person cannot go to the manager for the complaint because most of the people are

hesitant$ o % suggest management to install a compliant bo3 in the branch, and recruit a

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special person for that guidance of the customer #hen they are unable to manage some

difficulties in banking matters$

Or!ani.ational *o""it"ent

%t is suggested that employees #orking on daily #ages basis should be given some

benefits, #hich the other employees are getting$ &heir salaries must increase according to

efficiency, performance and service this #ill increase there commitment to the

organi)ation$

*redit Monitorin!

&he credit department of the bank should carry out vigilant credit monitoring$ &hey

should ensure the proper payment of installments and the markup by the borro#er$

&he staff members #ho have done all the paper #ork of the loan e3tension should

perform the monitoring, as heshe #ill be having more information about the borro#er$

#$tended Bankin! Ho%rs

&he banking hours may be e3tended up to si3, as being practiced by !> opposite to it$

ome of the business community due to la# and order situation are no# reluctant to keep

the fund in their premises and #ould #ant to depart #ith it$ &herefore, Main ranch may

e3tend the night banking to cater to demand of this business community$ &he branch

could also be opened to cater the reDuirements of this business community

Ho%sin! and Ho%se Hold ;oods 9oans

ank should initiate these loans because most of bank-s customers are middle class and

they cannot afford to buy house or household goods at once by their o#n$

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A&oidin! Bad Debts

@reat care should be taking #hile e3tending the loan$ >oans should be a#arded against

reasonable securities, #here market value should be eDual to the loan granted$

Policies should be crafted in a #ay to ensure that no loan is e3tended on political

pressure$ P regulation for loan approval should be strictly follo#ed$ According to

#hich the current ration of borro#er-s business must be 1?1 and the debt to eDuity ratio

should be :.?8., means the liDuidity position of business should be healthy$ ut

unfortunately op has unsatisfactory current ratio I uses about =/ G eDuity in its capital

structure$

3e,erence and 'o%rces Used

Written:5

o Annual 7eport

o 7ecords

o %nternet

Web 'ites-

###$bop$org$$com

###$bop$org$pk

###$google$com
http://www.bop.org.pk/http://www.google.com/http://www.bop.org.pk/http://www.google.com/

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