BOP.pdf

Internship Report The Bank Of Punjab Raiwind Road,Lahore

1 COMSATS Institute of Information Technology Lahore Campus

Internship Report “The Bank of Punjab”

Raiwind Road Branch Lahore Presented To:

Muhammad Fahad Javaid

Presented By:

Nabeel Safdar

CIIT/FA08-MBE-033/LHR

COMSATS Institute of Information Technology

Lahore Campus



Preface Being aware of the importance of practical training, COMSATS Institute of Information Technology Lahore requires every MBA Student to go through training for practical purpose as trainee. The internship program is to broaden the vision of practical experiences with theoretical knowledge as it increases one’s capabilities to handle problems at various stages and the ability of decision. I tried my best to collect the valuable information and its relevant facts. This report is the result of my employment with Bank of Punjab Raiwind Road Branch Lahore.

Nabeel Safdar CIIT/FA08-MBE-033/LHR



Acknowledgement Special Thank to Almighty ALLAH who is always been so kind and merciful give us this much courage and wisdom that we completed this internship in such a nice manner. After that I am thankful to the placement office of “COMSATS” who arranged this valuable opportunity for me. I think without their efforts I would not be able to do the internship. I thoroughly appreciate their efforts. I hope in the future they will continue to cooperate with me in arranging for my job as well. I tried hard to avail this brilliant opportunity. I think I have learned many things as you will see in the internship report. Special thanks to all staff members of Bank of Punjab who helped me a lot throughout my internship and provides me all practical knowledge. I feel very lucky because under the supervision of such a cooperative team I learned so many things. My loving parents whose prayers and provided all resources that we required in this internship make us able to complete this task.



Contents Pg# 1) Executive Summary 07

2) Importance of Internship experience 09

Aims and Purpose if Internship 09

Limitation during internship 10

3) Banking History 11

Definitions of Bank 11

Banking History in Pakistan 12

Banks in Pakistan 13

4) Introduction Of BOP 15

BOP President 16

Bank’s Philosophy 17

Vision Statement, Mission Statement, Values 17

Punjab Government Shows Faith in Bank of Punjab 18

BOP Awards & Achievements 19 BOP Management 20 Services of Bank of Punjab 22 Earnings Of BOP 23

Function of board in the formulation of strategie 23

Online branches network 26

5) Account Opening 27

Rationales of Account Opening 27

Flow Chart of Account Opening 31 Account Closing 32

Rationale of Account Closing 32

Flow Chart of Account closing 32

6) Issuing cheque of customers 33

Flow Chart of Issuing Cheque book to customer for first time 34

Flow Chart of Issuing Cheque book to customer after first Time 35



Rationale 36

In Case if Customer Lost Cheque Book 36

Flow Chart in Case if Customer Lost Cheque Book 37 Rationale 38

7) Cheque Cash By the customer 38

cheque leave format 38

Rationale 39

Flow Chart branch receives cheque of same branch 41

8) Clearing 42

Inward Clearing and Flow Chart 44

Outward clearing and Flow Chart 45

Remittance Form 46

Procedure 46

Rationale 46

Important Rationale of Remittance 48 Payment Order 48

Form of pay order 49

Flow chart 50

Flow chart of System Transition Pay Order 51

Demand Draft 52 Procedure and Rationale of DD 53

Flow chart of Demand Draft 54

Flow chart of working after giving DD to customer 55

Flow chart in system transaction of DD 56

9) Online Transfer 57

Procedure 57

Flow chart of Online Transfer 58

System Transition of online 59

Rationale 60



If Online Credit Not Possible 60 10) CDR 61

Form (CDR) 62

11) Vouchers 63 Procedure 63

Rationale 66

Flow Chart Maintaining the Supplementary Sheets 67

12) Online system of Bank of Punjab 68

Inter Face of Posting 68

Inter Face of Posting (debit) 69

Inter Face of Posting (credit) 70

Inter Face of Authentication (credit) 71

13) System used by banks 71

Token system flow chart 72

Tailor system flow chart 73

14) ATM Debit Card 74

Procedure of ATM 74

Flow Chart of ATM 75

Rationale 75

15) Vault Register 76

Procedure and Flow Chart of Vault Register 76

16) Financial Analysis 77

17) Ratio Analysis 80

18) My observation during internship 86

Swot Analysis of BOP 87

19) Conclusion and recommendation 89

20) Appendix 91

21) References 94



Executive Summary My internship project focuses on banking sector. I started my internship in Punjab Bank by getting approval from our instructor. Then, we followed the internship learning process. Internship training at The Bank of Punjab is aimed at providing the students a major

unique opportunity to learn what bank is all about. BOP(Formerly Bank of Punjab) has a

solid foundation of over 21 years in Pakistan, with a network of over 272 branches,

which are all Branches provided online transactions facilities to his customers. Punjab

Bank is a famous bank for GOVT. employees and other companies total asset of

Punjab Bank are 22 billions. After the Hamesh corruption scandal BOP improve himself

with introducing new and innovative concept for increase his productivity, enhancement

of customer service standards, process efficiency and controls and improve efficiency of

branches, expertise and reduce delivery cost.

Internship is an important part of MBA program and “COMSATS” provides

opportunity to all students to learn about the partial working of organizations and

improve their personal skills. Business problems are becoming more complex with the

passage of time due to the advancement in the world. “COMSATS” students really get much benefit through this practical knowledge during studies.

This internship is not only help full for making this report but this education gives a

general knowledge about business, decisions and policies. In this way I personally feel

that your mind start thinking innovatively, broadly and dynamically. Facing challenges of

day-to-day life is not a difficult task to handle for individual.



During my employment in Punjab Bank Limited I performed all works in Raiwind Road

Branch and I successfully completed all the task/duties that were assigned to me.

During the course of employment I learned about different functions performed in banks.

I also learned bank’s correspondence with their customers and within branches. I

learned about documentation requirements and record keeping for different activities

and processes.

I tried my level best to produce a most comprehensive internship report on The

Bank of Punjab by compiling all the practical learning in a systematic way, hence

making the report unique. All information is based on the observations; the officials

provide documents and information’s. This effort and my interest in internship can

evaluate me in true prospective.



Importance of Internship experience My internship experience was remarkable during my internship I observed following

points:

Internship provides you practical learning along with your bookish knowledge

that you got from the university.

Internship polishes your skills

Concepts become clearer and you will feel the difference between your past

learning and this practical work.

Increase in the confidence level and your mental approach become extensive.

Dynamic thinking becomes part of your daily life during this period of internship

period and that reflect changes in your life as well.

“Think out of the box” more you have question answerer section your mental

approach become versatile.

Aims and Purpose of Internship:

One of the major aims of internship to make student under all those concepts

that we lean in university are almost same to the practical working in any

organization.

Interaction of students with the working environment of organization and

make student to a good observer, communicator, build confidence and face

different sort of challenges but more focused on the learning process.

Creating PR (personal relations) because on the bases of PR more chances of

progress no matter which ever field you chose for you career.



Limitation during internship:

Following are the limitation that I observed during my internship:

No entrance in the cash counters because this area is very sensitive and only

the cashier is allowed no other staff member. Cashier’s major responsibility is

to balance the cash at the end of day. When the cash is balance then other task

can proceed such as

Run the day end

Backup of after, before, offsite and week end day.

Print all the sheets

Send data to IT department

Keep back up in order to maintain hand copy of data.

Online banking system for the entry of transaction was limitation because every

employee is responsible for his/her assigned task. In case if any wrong entry is

made then this will out the cash balance and create problem at the end of day.

Prohibited area was strong room where vault register and cash is kept only

three employees are allowed who got the keys of strong room i.e. Manager,

operation manager and the casher.

Not allowed to fill the blank cheque for the customer.



BANKING HISTORY

It has not so far been decided as to how the word ‘Bank’ originated. Some authors

suggest that this word has been derived from the word ‘Bancus’ or ‘Banque’ which

mean a bench. The explanation of this word has been related to the fact that the Jews

transacted the business of money exchange on benches in the market place and when

the business failed the ‘Bancus’ was destroyed by the people. Incidentally the word

‘Bankrupt’ is said to have been evolved from this practice.

Other authorities hold the opinion that the word ‘Bank’ is derived from the German word

‘Banc’ which means a joint Stock fund. Later on the Germans occupied the major part of

Italy and the word Banc was Italianized into “Bank”.

DEFINITIONS OF BANK Different bankers and economists have defined it differently.

According to British Parliament:

“Any firm or institution doing a bonafide banking business.” According to Sayers: “A bank is an institution whose debts are widely accepted in Settlement of other people’s debts to each other.”

According to Gilbert: “A banker is a dealer in money, or more properly a dealer in Money. He is an intermediary between the borrower and the Lender.” According to Kinley:

“A bank is an institution which receives deposits and advances Loans.”



Banking History in Pakistan

Before independence on 14 August 1947, the Reserve Bank of India (central bank of India) was the central bank for what is now Pakistan. On 30 December 1948 the British Government's commission distributed the Bank of India's reserves between Pakistan and India - 30 percent (750 M gold) for Pakistan and 70 percent for India.

The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948.

Function of State Bank of Pakistan:

Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was charged with the duty to "regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage".

The Stat Bank of Pakistan looks into a lot of different ranges of banking to deal with the changes in economic climate and different purchasing and buying powers. Here are some of the banking areas that the state bank looks into;

State bank establish and approve Essentials and Model Agreements for Islamic Modes of Financing. Banking Sector Supervision in Pakistan Micro Finance Small Medium Enterprises (SMEs) Minimum Capital Requirements for Banks Remittance Facilities in Pakistan Opening of Foreign Currency Accounts with Banks in Pakistan under new scheme. Handbook of Corporate Governance Guidelines on Risk Management Guidelines on Commercial Paper Guidelines on Securitization SBP. Scheme for Agricultural Financing



BANKS IN PAKISTAN MEMBER'S OF PAKISTAN BANK ASSOCIATION (updated on 20-11-2006)

GOVERNMENT OWNED BANKS:

1. FIRST WOMEN BANK LTD. 2. INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN 3. KHUSHHALI BANK 4. NATIONAL BANK OF PAKISTAN 5. SME BANK LIMITED 6. THE BANK OF KHYBER 7. THE BANK OF PUNJAB 8. THE PUNJAB PROVINCIAL CO-OPERATIVE BANK LIMITED 9. ZARAI TARAQIATI BANK LIMITED PRIVATIZED BANKS: 1. ALLIED BANK LIMITED

2. HABIB BANK LIMITED

3. MCB BANK LIMITED

4. UNITED BANK LIMITED

PRIVATE BANKS: 1. ASKARI COMMERCIAL BANK LTD. (FAISALABAD)

2. BANK AL-FALAH LTD. (KARACHI)

3. ATLAS BANK LIMITED

4. FAYSAL BANK LTD. (KARACHI)

5. BANK AL-HABIB LTD. (KARACHI)

6. HABIB METROPOLITAN BANK LTD. (KARACHI)

7. KASB COMMERCIAL BANK LTD. (KARACHI)

8. PRIME COMMERCIAL BANK LTD. (LAHORE)

9. PICIC COMMERCIAL BANK LTD. (KARACHI)



10. SONERI BANK LTD. (KARACHI)

11. MY BANK LTD. (KARACHI)

12. MEEZAN BANK LTD. (KARACHI)

13. SAUDI-PAK COMMERCIAL BANK LTD. (KARACHI)

14. CRESCENT COMMERCIAL BANK LTD. (KARACHI)

15. BANKISLAMI PAKISTAN LTD

16. NDLC-IFIC BANK LTD. (NIB) (KARACHI)

17. DUBAI ISLAMIC BANK

18. ARIF HABIB RUPALI BANK LIMITED

19. STANDARD CHARTERED BANK (PAK) LIMITED

FOREIGN BANKS: 1. ABN AMRO BANK N.V (ISLAMABAD)

2. ALBARAKA ISLAMIC BANK BSC(EC) (LAHORE)

3. CITIBANK N.A. (KARACHI)

4. DEUTSCHE BANK A.G. (KARACHI)

5. HONGKONG & SHANGHAI BANKING CORP. LTD. (KARACHI)

6. OMAN INTERNATIONAL BANK S.O.A.G. (KARACHI).

Pakistan is having a very developed banking system in south Asia. Pakistan’s banking

sector is developing at a very fast pace and banking sector’s contribution is increasing

toward the development of economy. The Bank of Punjab is also one of the most

popular banks in Pakistan. In fact, it has made wonderful advancement in a very short

time as compared to other banks in Pakistan.



Introduction Of BOP For internship my selected bank was “THE BANK OF PUNJAB” in short known as

BOP and branch location is Main Center Raiwind Road Branch. In banking sector

every branch have unique code and whole working is based on these codes The Bank

of Punjab Raiwind road code is 277.

Established in Pakistan on 15 Nov 1989, in pursuance of The Bank of Punjab Act 1989

and was given the status of scheduled bank in 1994.

The Bank of Punjab is working as a scheduled commercial bank with its network of 272 (2007) branches at all major business centers in the country and strength of employees

are 2373 employees

Branches of this bank are increasing all over the country at a gradual speed

which shows that customers are placing confidence and satisfaction in the

services of BOP.

In fact, it has made wonderful advancement in a very short time as compared to

other banks in Pakistan.

I am student of MBA and I strat my speclization in Finance so that reason I choose bank

for internship fon know more about the finance. so I decided to choose BOP for

internship. The bank's major customer is the government. Other customers are various

public sector enterprises from different segments of the economy including textile, real

estate, transport, agriculture, financial institutions and individual customers.BOP open

his new branch in Sundar Real Estate.



BOP President

Mr. Naeemuddin Khan, newly appointed President, The Bank of Punjab, has experience

of more than 25 years in local and international banking industry with good repute.

Before joining the top slot of the BOP, he was the Chief Executive Officer and Managing

Director of the Pak-Libya Holding Company (Pvt) Limited.

Naeemuddin has also served in the Corporate and Industrial Restructuring Corporation

(CRIC) during the Shaukat Aziz’s government.

In 2001, he was seconded by the then Prime Minister, Shaukat Aziz and the then State

Bank of Pakistan governor, Dr Ishrat Hussain, to Corporate and Industrial Restructuring

Corporation as the member, banking. He developed functional layout of the corporation

and successfully handled its operations.

Naeemuddin started his Banking career from Grindlays Bank in 1978 and worked as a

Branch Manager of Grindlays Bank in Islamabad, Rawalpindi and Lahore.

In 1991, he joined Emirates International Bank as a Chief Manager, Lahore. In 1998, he

joined the United bank Limited as SEVP/Head Special Assets Management Division.

He graduated from the Forman Christian College and completed his education from the

PACE University, New York, and USA. In 2004, he was awarded Muzaffar Memorial

Gold Medal by the SBP governor in recognition of meritorious services to the Banking

Industry in Pakistan.



BANK’S PHILOSOPHY Bank’s business philosophy is described as to cater the banking requirement of Small and medium sized entrepreneurs by providing those competitive and quality services with emphasis on encouraging exports

Mission and Vision

Vision Statement

“To be a customer focused bank with service excellence.”

Mission Statement

“To exceed the expectation of our stakeholders by leveraging our

relationship with the Govt. of Punjab and delivering a complete

range of professional solutions with a focus on program driven

products and services in the agriculture and middle tier markets

through a motivated team.”



Values Customers As our first priority Profitability For the prosperity of our stakeholders that allows us to

constantly invest, improve and succeed. Corporate social responsibility To enrich the lives of community where we

live. Recognition & Reward For the talented and high performing employees. Excellence In everything we do. Integrity In all our dealings. Respect For our customers and for each other. Punjab Government Shows Faith in Bank of Punjab Punjab Government wishes to state that being the major stake holder in the Bank of

Punjab it has full faith in the new management and operations of the Bank. The

government further pledges its unequivocal support to the Bank and firmly believes that

the affairs of the Bank are sound and its financial health robust.

Finance Department

Government of the Punjab



BOP Awards & Achievements

Excellence Award by the Central Board of Revenue: The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in

recognition of the contribution made by the bank towards Government exchequer.

Third Kissan Time Awards: In recognition of Bank's contribution in development and growth of agricultural sector,

the Bank was honored with "Top Bank for Agriculture Loans" and "Best Bank Crop

Insurance" under Third Kissan Time Awards year 2006.

Best Corporate Report Award: Annual Report of the Bank for the year 2005 won fifth position for "The Best Corporate

Report Award" for the Financial sector, adjudicated jointly by the Institute of Chartered

Accountants of Pakistan and the Institute of Cost and Management Accountants of

Pakistan.

Sixteenth Bolan Excellence Award: The Bank was awarded Best Bank Award under sixteenth Bolan Excellence Awards

distributed in 2006.

Achievement Award: The Lahore Chamber of Commerce and Industry (LCCI) awarded the Bank "LCCI

Achievement Award" 2006.



BOP Management

Mr. Safdar Javaid Syed Chairman Mr. Naeemuddin Khan President Mr. Khalid Siddiq Trimizey Dy Chief Executive Officer

Mr. Sajjad Hussain Group Head Special Assets Management (SAM)

Mr. Shahid Waqar Mahmood Head Retail Banking

Mr. Shaheen N. Qureshi General Manager Special Assets Management (SAM)

Mr. Nadeem Amir General Manager Finance Mr. Sharjeal Masud General Manager Operations Mr. Mahmood Sadiq Khan General Manager I&PSL (LDD) Mr. Zalmai Azam Durrani General Manager Broad Base Liability Mr. S. M. Atif Head Consumer Banking Division (CBD) Mr. Azhar Hussain Dilawari Head IT

Mr. Khawar S.Ansari Head Treasury Mr. Ijaz ur Rehman Qureshi Head of Audit & RAR

Mr. Main Muhammad Sharif Head CAD

Mr. Salman Saeed Head Credit Policy Mr. Moazzam M Maneka Head Agriculture Credit Department Mr. Amir Hameed Head TPC Mr. Sajid Arif Nomani Head Establishment Mr. Irfanuddin Head C&CD Mr. Naveed Hafeez Shaikh Acting General Manager HR

Mr. Mohammad Nauman Acting Country Risk Manager Mr. Hafeez ud Din Acting Country Head C&IBG Mr. Aseer Ahmad Khan Acting Country Commercial Head Mr. Momin Hyat Advisor Islamic Banking Mr. Raza Saeed C.M & Secretary to Boad of Director



BOARD OF DIRECTORS Mr. Safdar Javaid Syed, Chairman.

Mr. Naeem-ud-din Khan, President.

Mr. Azhar Hameed, Director.

Mr. Haroon Khwaja, Director.

Mr. Farooq Ahmed Awan, Director.

Mr. M. Naveed Masood, Director.

Mr. Mujtaba Jamal Ch, Director.

Mr. Shafqat Ellahi, Director.

Mr. Shafqat Mehmood, Director.

Mr. Tariq Mehmood Pasha, Director.

Mr. Waqar Ahmed Khan, Director

Audit Committee MR. HAROON KHAWAJA CHAIRMAN

MR. AZHAR HAMID MEMBER MR. NAVEED MASUD MEMBER



Services of Bank of Punjab

The Bank provides all types of banking services such as:

Deposit in Local Currency Client Deposit in Foreign Currency

Advances to Business

Trade

Industry and Agriculture.

ATM Facility

On-Line Banking

E-Banking

Debit Card

Consumer Financing

Agriculture Financing

Corporate Financing

Commission free Remittance

ZARCO Exchange Remittance

Collection of Utility

Lockers Facility

Account Opening Form



Earnings Of BOP Bop Of Punjab provides good foreign banking as a result good foreign earnings.Earning

by opening LC.

The Bank of Punjab has indeed entered a new era of science to the nation under

experience and professional hands of its management. The Bank of Punjab plays a vital

role in the national economy through mobilization of up till now unused local

resources, promoting savings and providing funds for investments.

Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts

and handling of Foreign Exchange business such as Imports, Exports and Remittances,

Financing, Trade and Industry for working capital requirements and money market

operations are some facilities being provided by the Bank.

The lending policy of Bank is not only cautious and constructive but also based on

principles of careful lending with maximum emphasis on security.

As agriculture is considered as backbone of our economy the Bank of Punjab has

introduced "Kissan Dost Agriculture Finance Scheme" with 50 billions RS. for small

farmers .

FUNCTION OF BOARD IN THE FORMULATION OF STRATEGIES The function of board is:

Policy formation.

Management of bank. (All branches)

Statement of ethics and business practices.

Corporate strategy.

Others functions.



1) POLICY FORMATION: For policy formation, directors meet once a month. In the meeting policies of the last

month are usually discussed. If there is a need of review, then the directors have he

right to do that, but collectively.

2) MANAGEMENT OF BANK: In this the board discussion about the management of all the branches, performance of

the managers of each branch is discussed individually. On the basis of the

performance, it is decided whether a branch manager deserves a reward of his

performance or he must be punished because of his negligence.

Different departments in The Bank of Punjab perform different functions. There are

departments like shares; customer, credit and they have their respective functions.

Administration department only interferes at the time where there is a problem about the

staff. In the branches, every manager has a direct link with his sub-ordinates. The

branch manager assigns employees of the bank a particular job. Usually there is job

rotation is avoiding the difficulties at the time of absence of any employee. The Board of

directors or higher management sets goals to the managers or middle and lower level of

management. The task specifies not only what is to be done, but also how it is to be

done and exact time allowed of doing it. The board consisting of ten directors and a

managing director interviews managers and upper level management.

3) STATEMENT OF ETHICS AND BUSINESS PRACTICES: Statement of ethics and business practices is prepared and circulated annually by the

board of directors in order to establish a standard of conduct for directors and

employees, which statement shall be signed by each director and employee in

acknowledgement of his understanding and acceptance of standard of conduct.



4) CORPORATE STRATEGY: The board of directors adopt a vision/mission statement and overall corporate strategy

for the listed company and also formulate significant policies, having regard to the level

of materiality, as may be determined it.

5) OTHER FUNCTIONS: The board of directors also performs the following important function:

Risk management

Human resource management including preparation of a succession plan

Procurement of goods and services

Marketing

Determination of terms of credit an discount to customers

Write-off of bad/doubtful debts, advances and receivables

Acquisition/disposal of fixed assets

Investments

Determination and delegation of financial powers

Health, safety and environment

Borrowings of money and the amount in excess of which borrowings shall be

sanctioned by a general meeting of shareholders

Donations, charities, contributions and other payments of a similar nature



Online Branches Network The bank of Punjab serves in the following cities that are highlighted on the map of Pakista. Head Office 7 - Egerton Road, Lahore (Pakistan) Tel: (042) 9200421-33 Fax: (042) 9200229 Main Branch, Lahore (Pakistan) Chief Manager Tel: (042) 9200419, 9200187 Fax: (042) 920



Account Opening

This form is used to open account in the bank and for every customer who want to open

account in bank must fill this form.

Rationale of Account Opening: Big account opening is the one of the major objectives of the bank because when

customer open account in the bank than deposit belongs to that branch and business is

done on these bases.

While filling the account form a customer must keep eye on the following points.

Branch Name In this rationale customer write the branch name of the Bop (where it is situated)

Branch Code: The bank of Punjab Raiwind road branch code is 277. Every branch has its own code

for contracting with other branches. In this rationale customer write the branch code of

that branch where he wants to open account.

On the left hand side of the form are that contains three attributes which are account

number, SBS code and date must be filled by the officer who open the account.

Types of Accounts In this rationale, customer writes the type of account that he want to open in the bank

whether he is opening current account, saving account, Basic Banking Account or

foreign currency account because these all accounts have their own rules and

regulations.



Current Deposit Account: Balance required to open this account is Rs 10,000/-

This account is usually open by those customers who want to make

transaction on daily bases.

Maintaining of account required minimum Rs 10,000/ balance must keep

in account.

In case if the balance in account is less then 10000/ then bank will charge

Rs 75/- per month.

The businessman prefers current account.

Pls (Profit and Loss Account): Balance required to open this account is Rs 10,000/- This account is usually open by those customers who earn salary and

transaction performed infrequently. Maintaining of account required minimum Rs 10,000/ balance must keep

in account.

In case if the balance in account is less then 10000/ then bank will charge

Rs 75/- per month. Customer gets profit @ 1.75% per annum.

BBA basic banking account: Balance required to open this account is Rs 1,000/- No fee for maintaining the BBA account. If the BBA account is nil for six month then branch can close this account.

Customer get profit @ 2.75% per annum

Super saving Account: This account is particular for those customers who want to save money for

as longer period of time.

Customer get profit @ 8.75% per annum



Currency of Account In this rationale customer write with what type of currency he will deal because there are

also specific rules for foreign currency e.g. zakat is exempted on foreign currency

accounts.

Title of Account In this rationale the name of the customer is written in (capital letters) that will deal with

the bank. The title of the bank may be individual, partnership, or joint company.

Contact In this all the information of the customer is mention like; mailing Address, Alternate

address, phone no., mobile no. fax no. and E-mail address. This is very important

rationale because in specific circumstances Bank has to contact with the account

holder.

Category of Account In this rationale customer write the category of account whether he want to open

individual, joint, proprietorship, Public ltd, or Private ltd company account. These all

types of accounts have different requirement for opening account in the Bank of Punjab.

Occupation Must tick your occupation.

Zakat Not applicable in case if you are non-Muslim, foreign nation or other e.t.c.

Operational Instructions In this A/c holder write the name of person who will operate the account that may be

Manger, personal secretary or any other relative of the account holder.



Introducer In this, the name of the introducer of that customer is mention. This is very important

because if new customer committed in a fraud then BOP may ask from the introducer of

that account holder

Applicant In this the name of applicant is mention that may be account holder self or any other

manager or agent of account holder.

Know Information Next (KIN) This is very important rationale; in this customer write the name and other contact

information of any relative or other person. If the account holder does not contact till

continuously three years then BOP contact that person whose name is mention in KIN.

Additional Information In this A/C holder mention if he has any account in other BOP Branch or any other bank

branch. This shows the strength of the customer that many its business is expanded.

Account opening checklist This is for the bank use only. In this bank check and tick on all the information that

were required for opening a bank account. This helps the managers or officer who open

the account for not missing any information or attached document.

General rules and Regulations In this all the rules and regulations for opening an account in Bop are mention. A/C

holder read and signs at bottom of every page of rules and regulations. This is very

important because if customer committed into fraud then Bop may suit or take action in

the light of those rules and regulations.

Most important points or Rules that BOP fellows:

Officer must view customer original CNIC and attached photo copy of NICI.

Introducer

NICI copy of next to kin.



Flow Chart of Account Opening

Customer

Fill up a/c opening form

Attach all required Documents by

Final Verification by Manager

Verification by specific officer

Computer Generates the A/c No.

A/c No. is entered in the a/c opening form

Account of the customer is opened

NIC copy

Service Letter if employee

Reference letter

Request application on letter pad if business A/C



Account Closing

One Application Form is available that help the customer to close his/her account Rationales: Whenever customer wants to close the account and customer feel that no need of that

account the customer close the account.

Only bank responsibility is to collect the issued cheque book form customer.

Secondly only filling of application is required.

Flow Chart of Account Closing

Cheque book return by the

customer

Submit application form

Officer closed the Account and no charges take by BOP

Payment of all balance in the account by the

bank



Issuing Cheque Book Of Customers Every customer that open account in which Punjab Bank they fill a Cheque Requisition

form for reciving cheque book.

Rationale: This is requirement of Bank so that this keep track of customer who newly opened

account and required cheque book on the following:

Date

With so many leaves etc.

Form: To: Main factors that involve in filling Requisition forms and issuing cheque book. BOP=Bank of Punjab

277=branch code of Bank of Punjab

A/c=Account Number

NIFT=national institute of facilities technology



Flow Chart of Issuing Cheque book to customer For First Time

Customer Required Cheque book first time

Customer working on F-11 Form Authorized officer working on F-11 Form

2 sign of customer

Address

Date

Sign of two authorized officers

Cheque # after Issues of Cheque

Name

# of leaves A/c #

Title Of A/c

After completion of required attributes then request send to NIFT

NIFT send statement of acceptance against this request

With in 5-6 days NIFT send cheque Book to BOP 277



Flow Chart

Of Issuing Cheque book to customer After First Time/or When Ever Customer Requires

Customer Required Cheque book

Bank send cheque book requisition card to NIFT after filling it.

Must submit cheque book requisition which is in the cheque book





NOTE: BOP=Bank of Punjab

277=branch code of Bank of Punjab NIFT=national institute of facilities technology Rationale:

Main reason of this issuing check book requisition in check book is that when

ever customer left with small numbers of leaves in cheque book then he/she

need new check book.

In order to make customer satisfied and make them new cheque book available

on time this whole process is done.

During that 5-6 day customer can use remaining leaves of cheque book.

Secondly keep record that how many cheques are used by the customers and

maintaining record.

Form (Cheque book requisition Card used by BOP (277)) filling for receiving new

cheque book.

In Case if Customer Lost Cheque Book

When ever customer lost cheque book then this filling of form required two things:

1) Application by the customer and all the relevant information such as account

Number , Date on which application was submitted to bank, number of leaves for

new cheque book ,Full name, address and 2 sign.

2) Reference of any account holder of that branch is required who can give

guarantee of that customer to bank.



Flow Chart in Case if Customer Lost Cheque Book

Customer must submit application along with Form

F-12

Guarantee Of account Holder of that branch is required

Bank Process start and then request send to NIFT



Authorized officer fill Cheque book issued form # after receiving cheque book form NIFT



Rationale: In order to cancel the old leaves of lost cheque book and issue new

cheque book this whole process is done.

Charges of issuing cheque book are Rs 4 per leave in case of PLS

account and Rs 5 per leave on CD account.

Chargers of cancel lost cheque book is Rs 1000/-.

Guarantee of other account holder is also required so that customer

cannot cheat with the bank.

Cheque Cash By the customer When the customer wants to take to debit amount form his/her account then customer have to use the cheque. Cheque leave

The Bank of Punjab cheque No: 35210007 (Established under the Bank of Pakistan Act 1989) Raiwind Road Branch Lahore Date:_________ Pay__________________________________________________________

ORBEARER Rupees_______________________________________________________ _____________________________________________________________ PLS A/C No 0000040008 KAWAJA MUHAMMAD TARIQ ------------------------------------------------------------------------------------------------------------ Don’t writ below this line

634715 ? 11 0830277: 0005930003” !



Rationale:

Cheque No: Every cheque has unique number. If the cheque book is of 25 pages then each leave

have series of number.

Stamp of Branch: This stamp is important because this identifies that cheque of that branch. For example

Raiwind road branch Lahore identifies that the account of that customer is in that

branch.

PLS or CD, A/C No, Sign and Title of Account:

Account number and title of account is mention in the end. Where the title is

KAWAJA MUHAMMAD TARIQ and the account holder have to sign just above title of

account.

Date: Date is very important in case of post dated and due dated (after 6 month) cheque will

not present.

Pays:

Self Open cheque any person can cash the cheque.

Name Only that person can cash the cheque whose name is

mention

Cash Cash is like self

Cross Cheque: In case of double line or “Payees Account Only” then the process is through transfer

entry or clearing.



Rupees and ORBEARER: In rupees we write amount in words where in box under ORBEARER amount in

numbers is mention and its very important that both things must match.

If the BEARER is cut: In case of cutting of bearer then no cash payment from the cash counter. Whole

process is LBC, OBC Or clearing is apply which ever it pertain.

In case of same branch cheque than transfer is done.

Computerized number: 634715 ?11 0830277: 0005930003” ! This computerized number is

used by NIFT where this whole number has segregation:

634715 Cheque #

0830 Bank Code

277 Branch Code

0005930003 Account number in 10 digits.

NOTE: In case of cutting then sign of account holder is required near cutting area.

If any cutting made on (pays account only and double line) then sign required

near cutting and cheque will consider an open cheque.

Post and due dated cheques are not presentable.

In case of return of cheque, bank charge as per schedule from the customer.

This is the income of bank.



Flow Chart

When the branch receives cheque of same branch (Raiwind road branch) then process is as fellows:

Cheque of BOP 277 If cheque is

cross then no payment on

counter

Posting

Sign of account Holder

Date

Amount in words and digits

2 sign at the back customer who deposit the cheque

Necessary checks by the officer

Sign verification

Initial by officer

Authentication Rechecking

Sign by second officer

Cheque sent to cash department

After checking all the process again conform 2 sign by the officer and sign

Payment made to customer from cash counter



Clearing There are two type of clearing which are as follows:

Inward clearing Outward clearing

Inward clearing:

In this type of clearing supposed that customer of BOP give payment to party from

cheque and this party have account in other bank may be MCB, UBL, Soneri bank e.t.c.

When the customer deposit the check of BOP in his/her bank along with the deposit

form then this process is know as inward clearing because this become the

responsibility of the receiver’s bank to collect the amount and credit in the bank account

of the receiver. This is called clearing.

Procedure of Inward Clearing: In this type of clearing NIFT (National instituted of facilitation Technology) are involved. Major task of this institute is to help in the clearing of cheques and issuances of cheque book to customer on demand of bank or branch. Before clearing was done by the State Bank of Pakistan (SBP) or National Bank of Pakistan (NBP). NIFT involve twice when clearing is performed.



Flow Chart Show of Clearing Process

When the BOP cheque of branch is received the following entry is follow Customer Account Dr Head office Cr Than BOP branch is the originating branch and send the schedule to head office. Where head office is the responding branch and passes the following entry Head office Dr Head Cr

Inward Clearing Inward clearing means same BOP branch receive cheques from other banks for

payments.

NIFT

SBP State Bank of Pakistan (sorting of cheques)

NIFT

Head office of BOP

Branches of BOP



Flow Chart of In Ward Clearing

Customer gives cheque of BOP to other party

CHQ holder goes where he has his own A/C

At evening bank send that CHQ to NIFT

Bank keeps CHQ and makes transaction

NIFT send BOP CHQ next morning to that branch whose name is mention on CHQ

BOP receives CHQ and checks the following things

BOP Dr. the A/C of customer and Cr. A/C of NIFT

NIFT transfer amount to the drawer bank

Their own branch instrument Date of instrument Date of clearing Over writing Amount in figers and words



Out Word Clearing

When an account holder having some receivables and the other person give payment in

Cheque rather than cash and Cheque is not of the same bank the account holder

comes and gives Cheque of other bank in that branch where he has an account.

That bank make payment to the account holder and at the evening that branch send

Cheque to the concerned bank and collect that amount which branch paid to its account

holder on the Cheque of that bank.

Flow Chart of Out Ward Clearing

A/C holder of other bank gives cheque to the A/C holder of

The A/C holder of BOP present cheque in

At evening bank send that CHQ to NIFT

Bank keeps CHQ and makes transaction

NIFT send BOP CHQ next morning to that branch whose Cheque is.

Other Bank receives CHQ and checks the following things

Their own branch instrument Date of instrument Date of clearing Over writing Amount in figures and words

Other Bank Dr. the A/C of his customer and Cr. A/C of NIFT

NIFT transfer amount to the drawee bank



Remittance Form Remittance form deal in the following matters Online Transfer (OT)

Call Deposit Pay Order (PO) Demand Draft (DD)

Mail Transfer Telegraphic transfer/swift

Procedure: For all of the above mention remittances Bank of Punjab have one structure. In order

to get this facility customer have to fill this form and must give details about

Beneficiary and Benefactor

Rationale: Beneficiary Informant:

Beneficiary is the person who is the receiver and all information must be fill by the

applicant or the Benefactor and that includes information such as name of

beneficiary (Receiver), Account No, Amount, Account Title, C.I.N.C No., Beneficiary’s

bank, branch code, address and City.

Benefactor’s Detail: The sender of the remittance is called the benefactor he has to fill these requirements

name, Copy of C.N.I.C No, Address, City, Contact number.

Date

This rationale printed on every type of forms and instruments that provides information

about the transaction day.

Account Number After opening account in the bank, bank issue an account number to the customer.

Names may be same but A/C # will never same



Customer branch name The name of the branch is very important. From this head other people can understand

where from the instrument came

Branch code Branch code is also very important. This code allocated by the bank management that

shows in which branch this instrument and customers come. More than one branch can

be in one city and at the same name of place but the branch code will distinguish

between the branches.

Amount (in words & figures) This head is also very important. It shows that how much amount is demanded of the

instrument. Amount should written in words and figures both because in figures can

arise mistake. So, when amount mentioned in words that mistake can be solve.

Telephone number of customer Contact number of customer is very in this modern period. In case of emergency you

can call your customer and problem can be solve very quickly.

When application is completed then signs by customer and officer. Then payment

from cash counter by the benefactor’s (including commission charges). Next step is the

preparation of instrument (dd, Payment order, call deposit).again sign required by the

benefactor on that printed instrument and this can be given to the party or the

beneficiary .The officer prints a pay order, containing the name and branch of Drawer’s

bank and the Drawee’s bank along with their codes. This application remittance form remains with the bank (branch) and treated in the voucher in general and amount will

be credit. When the issued instrument received by bank may be form clearing then this

is the property of bank and this attached with the supplementary sheets amount will be

on debit because this liability of bank finishes.



Important Rationale of Remittance: Demand Draft, pay order, BOP online the customer requires any of the

instruments because he has me make payment to party and in this case bank

is involved and gives guarantee against this instrument that cash is available.

Party satisfaction is also involved because in case of cheque chances that

might be balance not available in benefactor account and cheque can be

dishonor but not in case of CDR, and Pay order and DD.

Party knows that cash is 100% present.

Payment Order In case of same city pay order is made for local payment purpose to party.

It’s a Government or Bank instrument it cannot be dishonor (means that the bank take

the payment from customer and make the payment order in the favor of party).

Whenever bank receives the payment order must have to pay to party.

Bank charge

Payment order Charges

Issuance of order Rs 50 for account holder

Rs 200 for non account holder

Cancellation of payment order Rs 100 for account holder


Issuance of duplicate Rs 100 for account holder


And there are no charges for the issuance of pay order to the Government. The

amount can be paid through cash or cheque.

Payment order that is printed by the officer is of yellow color.



Payment Order

The Bank of Punjab Payment Order No: 2007/00151 Raiwind Road Branch Issued No: 02/05/2007

Rs=84932/- Pay: Lahore Development Authority Rupees: Eighty four thousand nine hundred thirty two only PKR: *************84932/-

From the Bank Of Punjab

_________________ _____ Authorized Signature Authorized Signature



Flow Chart of Pay Order

Customer

Fill the Pay order Form

Pay the Pay order Amount at cash counter

Present the Form to Officer & and ask for the Pay order

Officers Prints the Payment order

Pay Order is Ready and issued to customer

Officer Sign & Authenticate Pay order

Cashier collects the amount & returns the form

Posting By first officer

Revenue stamp at the back of Pay order (Rs2)



Flow chat of System Transition (Pay Order)

First Office log in and give module # in which transition perform

Posting of Pay Order By first Officer

Enter account

number For credit

press 1 Enter form

number Amount

Press E and note the transition

number on the

Authentication by the second officer and transaction completed

Entry note by the branch: Customer Account Dr Branch Cr

Second officer Log in

Enter transaction # that mention on the form and generated by system when

Rechecking of date, amount, title e.t.c



When Payment order received from clearing Stamps used by sender Bank

1) NBP clearing

2) Pay Account Credited (at Back)

Stamp used issuer of Pay order:

1) Transfer stamp

2) Sign of two officer are required (after posting and authentication)

Demand Draft

Demand Draft is used where the payment has to be made out of city the process of

Demand Draft is similar to the Pay Order process. When ever customer want demand draft then must fill the remittance from must provide

all the information about the beneficiary (Receiver), Account No, Amount, Account Title,

C.I.N.C No., Beneficiary’s bank, branch code, address and City. It’s not necessary that

the receiver is the account holder of BOP you just have to mention the name of

receiver. On the other hand Demand Draft, payment order and Call deposit can also

issued to the non-account holder applicant.

Note: Any one can have this facility wither customer is account holder or not.



Procedure: Customer fills the form for demand draft, payment of DD on the cash counter and

casher will issue customer copy form, present this form in front of officer in order to

acquire the DD first Officer post and second office authenticate the demand draft and

makes entry in the computer. Officers Prints the DD (demand draft) and DD is ready

and issued to customer.

When the DD issued then branch not the following entry and head office is involved

in DD and online transfer.

Branch Dr

General ledger Cr

When branch receives the DD the following entry is noted

General ledger Dr

Customer Account/customer Cr

Rationale of DD

This demand draft is guaranteed by bank that customer (applicant) giving DD to

party (receiver) contains 100% cash.

No chances of late payment or return like cheque.

For payment to part outside city DD issued to the customer who need it.



Flow Chart of DD (Demand draft)

Customer

Fill the DD Form

Pay the DD Amount at cash counter


Present the Form to Officer & ask for the DD

First Officer post the DD Authenticate DD

Officers Prints the

DD

Demand Draft is Ready and

given to customer

Authentication by the Second officer



Flow Chart of Working by Branch after Giving DD (Demand draft) To

Customer

After Demand Draft given to

customer

Send the Credit Advice to the branch out of city by TCS &must reach to that out city branch very next day

DD received by the out of city branch Of BOP

Send the DD in clearing and credit after 2 Days to the customer account in case if account in different Bank

Entry by the responding branch (who receive Credit Advice): General ledger Dr

Customer Account/customer Cr

Entry by the originating (who send Credit Advice):

Branch Dr General ledger Cr



Flow chart of System Transition (Demand Draft)

Office log in and give module # in which transition

Posting of DD By first Officer

Enter account

number For credit

press 1 Enter form

number Amount

Press E and note the transition number

Authentication by the second officer and transaction completed

Entry note by the originating branch: Branch Dr General ledger Cr

Second officer Log in

Enter transaction # that mention on the form and generated by system when posting was done.

Rechecking of date, amount, title e.t.c



Online Transfer

When the customer wants to transfer the money to the other branch of Bank of

Punjab, within city or out of city then online transfer is preferable because its

requires less time. Procedure: After filling the form and deposal of money the bank officer get connected to the

online status and enter the branch code of the other branch.

Then the account number of the receiver is entered. All information about the

account holder is queried on the screen then the entry is made.

First officer post the entry and writ transition number.

Then the other officer authenticates the entry then the amount is credited in the

account of the receiver. This process is called online transfer. Charges

Transaction Type Charges

Upto Rs. 10,000/- 0.15% - Min. Rs 25

Rs. 10,001 to Rs. 100,000/- 0.10% - Min. Rs. 50

Rs. 100,001 to Rs. 500,000/- 0.06% - Min. Rs. 200

Rs. 500,001 to Rs. 1,000,000/- 0.04% - Min. Rs. 300

Over Rs.1,000,000/- 0.04% - Min. Rs. 500



Online Transfer Flow Chart

Customer

Fill the Online transfer Form or payment by using deposit

form

Pay the Online transfer Amount at cash counter

Present the Form to Officer & and ask for the Online Transfer

Online payment

Officer Sign & Authenticate OT


Posting by first Office



Flow chart of System Transition (online)

Office log in and give module # in which transition perform

Online the branch by giving code

Enter account number

For credit press 1

Enter form number

Amount

Press E and not the transition number

Amount credited to that customer account of that branch



Rationale: Online transfer required very less time and receiver get credit at one and customer don’t

have to wait.

Incase If Online Credit Not Possible Credit Advice

When ever customer wants to credit amount at the spot then online is use. In case if the customer wants only online credit and due to some problem with

the online sever then the branch Fax credit advice in order to perform this

urgent task and the amount will be credit directly to customer account at the

same time.

Credit advice delivered to the belong branch the very next day credit in the

account at the spot.

Branch which makes this credit advice is now as originating branch and when other

branch received this credit advice then responds this credit advice

Important Note:

In the remittance form only these three options that are mention above use more

frequently use and mail transfer and telegraphic transfer are not used now a

days.

CDR and Pay order are local payments

Brach deposit until paid

In DD payment is done out side city not from the branch who issue demand draft.

Head office is involves in case of DD and Online transfer and work as a

middleman. Main task of head office is to take money form one branch and

transfer to other branch of BOP.



CDR CDR stands for call deposit receipt main purpose of CDR is that when every customer

want to do some contract or project with Government or any other agency then

required CDR by the bank. Its 10% of the total amount of the project the he is going to

manage in future. This CDR is like security or token money and when project finished

then discharged by the owner, government, or institute “whose name is mention on

this CDR”.

Stamp and sign on CDR:

Sign by two officers one who post and other who authenticate.

At back of CDR After checking voucher and verified sign date e.t.c.

Pays account credited “this stamp knows as endorsement “which mean that the

amount has been credit.

Crossing stamp “pays account only” when discharge by the owner of CDR

then CDR become open by the name of Town Nazim Iqbal Town Lahore name

mention on the form attached on next page.

This stamp means that the amount is transfer form one account to another account.

1KM Raiwand

Signature verified

Road Lahore

The Bank of Punjab Main Center 1KM Raiwand Road Lahore 08 AUGUST 2007 TRANSFER



FORM (CDR)

Date 08/06/2010 No:00420448

CALL DEPOSIT RECEIPT

The Bank of Punjab Transferable

Raiwand Road Lahore Rs 5000/- CRD NO: 0000004358 ISSUE NO: 21/07/07 Received from: Town Nazim Iqbal Town Lahore No A/C OF Muhammad Javed Sindhu The sum of Rs: Five thousand only Rs *****,5000.00 As a deposit repayable at call For the Bank of Punjab _________________ ___________________ Authorized signature Authorized signature When payment is required this receipt must be returned to the bank duty discharged by the depositor under the words received payments.

The Bank Of Punjab Main Center 1 KM Raiwind

Road Lahore



NOTE: The Bank reserves the right to refund the amount to the purchaser in the absence of payees discharge ________________________________________________________________ Do not write below this line

Vouchers

Voucher used to keep the record of all the work performed by branch through out the

day and organizes by the officer at the end of day.

Procedure

Voucher Attached with the supplementary sheets There are two parts of vouchers that BOP use to keep the record at the end of each

day.

1) First bundle of voucher includes Cash on hand, CD voucher, PLS vouchers and

general vouchers all the debit and credit entries done and along with the

evidence are attached.

2) Second bundle of voucher includes H/O (head office) vouchers, and income and

expenditure vouchers same case with this bundle of vouchers all the debit and

credit entries done and along with the evidence are attached. These evidences are this instruments that bank received thought out the day.

When ever officers have to arrange these all vouchers and bind them than must keep in

mind following points:

1) Sorting of all the instruments (Dr and Cr) according to the supplementary sheets.

2) Then ticking of the amounts that are mention on the supplementary sheets in

order to avoid the missing instruments and for rechecking purpose.

3) Debit vouchers are above the credit vouchers while you staple the bundle of

vouchers.



4) After the title page is attached with the vouchers the total numbers of (DR and

Cr) transitions have to sum up and write above the bundle in Dr and Cr columns.

First Bundle of vouchers Distribution This whole bundle includes the following:

Cash On Hand: This shows the detail of amount paid to the customers or withdrawn done by the

customer through out the day.

Bill received with CD like utility bills.

Attachments:

“Cash Position Memo” CD Vouchers: All the debit vouchers (CD cheques) and credit vouchers (deposit receipts of Cd accounts) are attached with the supplementary sheets. Debit vouchers are smaller

then the debit vouchers so that why they are staple above the credit voucher with the

supplementary sheets.

PLS Vouchers: All the debit vouchers ( PLS cheques) and credit vouchers (deposit receipts of PLS accounts) are attached with the supplementary sheets after checking amounts on

the supplementary same case with PLS accounts vouchers credit voucher are above

the debit vouchers and then attached with the supplementary sheets.

Form of internal transfer this is a sheet that contains different account numbers that

are opened by the college or university for the purpose of submission of fee. When bank

receives fee form students the credit the amount in different account that are opened by

the university or college.



General: Some of the important instruments that must be attached with the supplementary sheets

are as follows:

1) PLS term Deposit Form.

2) CPA (cooperate premium account)

3) Payment order issued

Only supplementary sheets no attachments of vouchers 4) Bill payables

5) Tax on bank cheque

6) Income tax payable

7) Tax on cash withdrawn

8) (LBC) local bill for collection

9) (OBC)Out word bill for collection

10) SBP

11) National prize bound

12) Sundry debtors clearing out word.

13) Sundry debtors clearing in word.

Second Bundle of vouchers Distribution This bundle includes vouchers and supplementary sheet of head office and income and expenditure.

Vouchers attached with Head Office supplementary sheets:

1) The entire voucher with the name of head office stamp like transfer, test agreed

e.t.c.

2) Bank transfer scroll that are issued by the NIFT.

3) All sort of advices form head offices. Vouchers attached with income and expenditure supplementary sheets

The following vouchers are attached with the income and expenditure supplementary

sheets



1) All sort of bank commission

2) All sort of banking charges

3) All sort of expensive like stationary, bills, entertainment of staff e.t.c in addition

receipt from shop keeper also attached.

4) Paper with cheque book details written on it.

5) Miscellanies expense debit vouchers

6) All the invoices with the name of bank manager.

Note:

1) CD,PLS and General are attached in bundle

2) Income and expenditure and head office are attached in other bundle

Rationale Of Supplementary sheet with attached (debit and credit) Vouchers or attached all

instruments

Main reason is to keep up to date record of all the work that is performed by the

branch through out the day.

In case if any misunderstanding arises in the instruments then this can easily be

traced out.

This is a head copy that can be easily view by the officers.

This vouchers can not be attached until the day end is run by the branch and

after the following things must keep in view

Balance of cash, nil accounts, run the day end and then print all the sheet then

vouchers can be sorted and maintained as a record.

In the end senior officer check and finally sign.

Note: while officer attaching vouchers with the supplementary sheet he/she mush

make clearing objection finish by stamping the received vouchers.



Flow chart of Maintaining the Supplementary Sheets

Debit Cheque of PLS and CD received form

cash counter

Customer

Required DD, pay order, online and CDR (Credit)

Deposit form of CD and PLS received form cash counter (credit)

Advices form head Office (debit)

Nift Scroll

Receiving form head Office

Customer (account holder/non account holder)

System

Run Day end

Data Transfer to IT department

Printing Of Supplementary

Sheets

Collection of all the instruments debit and credit vouchers form officers and cash department

Attachments of sheets with all vouchers/Instruments



Online system of Bank of Punjab Bank of Punjab have a strong network system and most of the task is performed

through online in order to facilitate their customers.

When any cheque from withdrawl or deposit is received by officer then they have to

post this cheque and other officer duty is to authenticate in the respective accounts.

On the other hand when every officer need to work on system must memorized all the codes on finger tips other wise it’s too difficult to move form one module to an other

module because entire system of works is based on modules.

Posting of Cheque or deposit form: After the officer get login then enter module number for posting

Module # 104001

Then enter 1 for new transaction

Inter Face of Posting 277 The Bank of Punjab 104001 Cash Deposit/Withdrawals (Lcy+FCY)

Account # Currency Freeze Amount

Transaction # Debit Or Credit (0=Dr, 1=Cr) Amount Wd Curr Amount Eq loc ccy

Message

Particulars



1=New; 2=Recall Trns; <ESC> Enter Note: in case if debit (posting) then following interface will appear

Inter Face of posting (debit) 350 The Bank of Punjab 21/08/07

104001 Cash Deposit/Withdrawals (Lcy+FCY) 16:14:44

Account # Khawaja Muhammad Tariq Currency Freeze Amount

Transaction # Debit Or Credit (0=Dr, 1=Cr) Cheque/Doc# Amount Wd Curr Amount Calculate Tax: Eq loc ccy

Message

Particulars

Twenty Thousand only

1=New; 2=Recall Trns; <ESC> Enter

Transaction status

000004-0008

PKR Pak Rupee

0

20,000

20,000

20,000

0.00

Transaction status E

35306150



Note: After the posting officer gets the message in case if the amount greater then the

present amount in the account system will display the following message

“Amount exceeding forms the drawing power presses any key to continue”.

Other vise officer press E and note the transaction number on the cheque that system

originates.

Inter Face of posting (credit) 388 The Bank of Punjab 21/08/07

104001 Cash Deposit/Withdrawals (Lcy+FCY) 16:25:07


Transaction # Debit Or Credit (0=Dr, 1=Cr) Cheque/Doc# Amount Wd Curr Amount Eq loc ccy

Message

Particulars

Twenty Thousand only

A=Auth E=Entry C=Change S=Scrach Note: In case of posting then enter E and note the transaction number then step 2 is for

authentication.

000004-0008

PKR Pak Rupee

1

20,000

20,000

20,000 0.00


125477707

Cash Deposit



For Authentication After the posting next step is that second officer get login and enter module number for

authentication

Module # 204001

Then enter transaction number

Inter Face of Authentication (credit) 388 The Bank of Punjab 21/08/07 204001 Cash Deposit/Withdrawals (Lcy+FCY) 17:18:17


Transaction # Debit Or Credit (0=Dr, 1=Cr) Cheque/Doc# Amount Wd Curr Amount Calculate Tax: Eq loc ccy

Message

Particulars

Twenty Thousand only 1=New; 2=Recall Trns; <ESC> Enter System used by banks There are two systems that are used by bank when customer wants to reach to cash

counter for deposit or withdrawing.

1) Token system (old system)

2) Tailor system

CD-000216-0004

PKR Pak Rupee

4

1

20,000

20,000

20,000

0.00


35306150



TOKEN SYSTEM (flow chart)

If No

TOKEN System

Token #

One sight

Sign verification

Initial by Officer

Sign verification stamp

Cheque posting Officer

Check the balance if sufficient balance than YES

Then charge by bank

Sign of posting Officer

Authentication Officer

Re-checking

Sign of Officer

CASH COUNTER

2 SIGN BY CUSTOMERS ON CHEQUE

PAYMENT

Checking date, amount, amount in words, cutting e.t.c



Rationale: Major requirement of token system is that for customers satisfaction because n

some case customers getting delay due to any problem for example over crowd

at cash counter than customers get dissatisfied.

In Bank of Punjab token is given to the customer and now implementation of

display on token is under consideration.

TAILOR SYSTEM Bank Of Punjab is now introducing this system tailor system infect Raiwind road branch

use tailor system. This system is not a complex system like token system.

Two steps perform by one office

cheque sign by second officer

Cheque bought by the customer

Sign verification

Posting

Authentication by Officer

Payment



Rationale: Main reason for this Tailor system is that reduce the customer waiting time.

In this case customers need not to wait and all the process done quickly.

The customers must get relief with in 1-1:30 min

Before 4 steps were required but now work done very quickly.

ATM Debit Card

ATM stand for automatic teller machine. This is one of the product of Bank of Punjab

in order to provide convenient to customer after bank timing and he/she can withdraw

amount form account by using this ATM Debit Card.

Procedure of ATM When customer want ATM Debit card he/she must account holder of Bank Of

Punjab.

Fill the application form ATM card

BOP takes ATM charges deducted

Information sends to IT department

After process by IT then card send to BOP Branch, which required it

Issue card to customer

Activate the card by calling on universal number.



Flow Chat of ATM Card Charges For Rationale:

Less time required as compare cash withdraw from cheque

Cash is available at your disposal 24 hour

No need to rush to bank for withdraw

Bank security policy related to ATM: Issuance of card with I week

Then pine code come to branch

This both things take 10 days

Application must fill in case if customer lost the ATM card.

For the re-issuance of ATM Debit Card Rs 250 is charge

Fill the application form ATM card

For activation must fill date of birth and mother name

ATM charges deducted Rs 250

Process by IT

With in 10 Days card send by IT dep to BOP Branch

Issue card to customer

Activate the card by calling on universal number



Vault Register Procedure: Vault register is placed is the strong room know as vault. Vault registration is the

important part of cash in which all the withdrawing and deposits are maintained.

When bank open than sharp 9:00 am amount that out from the vault (save

room) is mention in this register in the column of domination.

In case if the deposit is greater than the assigned limit then cashier is not

allowed to keep on cash counter thus that amount must keep in save plus the time also

mention.

When cash is out of vault room than the officer must sign vault register in the

strong room.

Strong room have 3 key with different employees of BOP (bank of

Punjab)and one of the key belong to manager other 2 keys are with officers. For

opening strong room and vault all these person are responsible until three keys are not applied the strong room will not open.

Flow Chat of Maintaining Vault Register Daily

- + =

Running Balance

Withdraw alls

Deposits

Ending balance



Cash counter limit is 2 million but place 6-7 hundred thousand for safety

purposes.

Ending balance of pervious day is the opening balance of current day/next day.

When subtracting with draws we get running finance and all deposits are added

in running finance through out the day.

At the day end all the amount that left on cash counter is deposited and added to

running balance to get the ending balance.

5 million in vault in case if the deposit exceeds then insured by the insurance

company on same day for safety purpose.

FINANCIAL ANALYSIS

What is financial analysis?

Financial analysis is used to evaluate corporate performance. It is used to gain an

exposure of the company’s financial position.

No company can remain in business if it cannot sustain and grow its profits and banks

are no exemption. If Bank OF PUNJAB wants to become a premier banking institution

and to satisfy its customers, it itself needs to become a profitable organization, that not

only has growth in profits, increase its assets but also provide its shareholders with the

maximum return so that they are also satisfied.



The Bank of Punjab

Balance Sheet as on December 31,2008 Assets 2008 2007 (Rs.000) (Rs.000) Cash and balance with Banks 79,155,081 70,944,010 Balances with other Banks 30,001,482 29,150,948 Lending to financial Institutions 18,749,309 15,939,501 Investments 71,759,449 72,609,081 Advances 170,319,096 140,318,362 Other Assets 36,952,148 35,944,790 Operating fixed Assets 7,199,835 6,729,046 Deferred Tax Assets 952,590 Nil Total Assets 415,088,990 371,635,738 Liabilities

Bills Payable 2,245,349 2,152,050 Borrowing from financial Institution 11,424,963 10,298,970 Deposits and other accounts 349,617,068 316,493,342 Liabilities against Assets 46,092 _____ Other Liabilities 34,185,081 25,274,874 Deferred tax Liabilities _____ 433,585 __________ __________ Total Liabilities 397,578,553 354,652,821 Net Assets 17,510,437 16,982,917 Represented By Share Capital 3,730,384 1,463,880 Reserves 7,476,063 9,728,799 Unappropriated profit 752,226 184,848 Total 11,958,673 11,377,527 Surplus on Revaluation of Assets 5,551,764 5,605,390 Total 17,510,437 16,982,917



The Bank of punjab Profit & loss Account

For the year ended December 31st,2008

prticulars 2008 2007 (Rs.000) (Rs.000) Net markup/Interest income 10,272,710 7,141,959 Non markup/Interest income 4,501,568 4,030,248 Total Income 14,774,278 11,172,207 Operating Expenses Administrative expenses 8,709,895 8,008,620 Other provisions 332,912 (516,463) Loss of joint venture 6,456 Nil Other charges 8,790 17,788 Total opr expenses 9,058,053 7,509,945 Amortization of deferred cost 2,700,596 2,629,862 Total Expenses 11,758,649 10,139,807 Profit before taxes 3,015,629 1,032,400 Net Taxes Payable 1,867,100 571,173 Profit after taxes 1,148,529 461,227 Unappr:profit/loss 184,848 (230,256) Profit available for appropriation 1,333,377 230,971 Appropriation: Statutory reserves 114,853 46,123 Cash dividend 466,298 Nil Total 581,151 46,123 Unapproprated profit 752,226 184,848 Earning per share 3.08 1.24



RATIO ANALYSIS There is almost an infuriate number of ratios which can be used particularly by the

management to construct financial mode to determine the impact of increase or

decrease in the cost of inputs .The financial ratios which have a universal application

almost all types of an organization are the follows

1. Liquidity Ratios.

2. Management Ratios. 3. Profitability Ratios. 4. Market value Ratios.

1.The Current Ratio: “A measure of liquidity calculated by dividing the firm’s

current assets by its current liabilities.”

The higher the current ratio, the more liquid the company appears to be.

Formula: (Current assets / Current Liabilities)

2008

(237570059/47961485)=1:4.95

2007

(224588330/38159479)=1:5.89

Interpretation: This ratio is showing a decreasing trend as it is 1:4.95 in 2008 and 1:5.89 in 2007

and according to the recommendation of State Bank of Pakistan a ratio of 1:1 is

considered good. So the current ratio of the Bank is very good.



2.Networking Ratio/ Working Capital : Formula: (Current Assets -Current Liabilities)

2008

(237570059-47961485)=189608574

2007

(224588330-38159479)=186428851

Interpretation: This ratio is showing an increasing trend as it is189608574 in 2008 and 186428851 in

2007. So the working capital of the Bank is very good.

3. Return on Share Holders Investment: Formula: (Net profit after taxes/Share Holder equity *100)

2008

1148529/11958673*100=9.60%

2007

461227/11377527*100=4.05%

Interpretation: This ratio is showing an increasing trend as it is 9.60% in 2008 and 4.05% in 2007. So

the return on share holders investment of the Bank is good.



4.Return on Equity Capital: Formula: (Net profit after taxes /paid up equity capital *100)

2008

1148529 / 3730384 *100=30.79%

2007

461227 / 1463880*100=31.51%

Interpretation: Return on equity capital ratio shows a decrease in a ratio. In 2007 it was 31.51%

While in 2008 it is 30.79% it shows that the return on equity capital is decreased

In 2008.

5.Earning per Share: Formula: (Net profit after taxes / no of equity shares)

2008

1148529/373038 =Rs.3.08 per share.

2007

461227/146388=Rs.3.15 per share.

Interpretation:

Earning per share ratio shows a decrease in a ratio. in 2007 it was Rs.3.15 per share

While in 2008 it is 3.08 per share it shows that the earning per share decreased in 2008



6.Debt Equity Ratio: Formula: (Outsiders funds / Share Holder equity)

2008

361102031/ 11958673=1:30.20

2007

326792312/11377527=1:28.72

Interpretation: Debt to equity ratio is increased in 2008 as compared 2007

7. Equity Ratio: Formula: (Share Holder Funds/Total Assets *100)

2008

11958673/415088990*100=2.88%

2007

9978164/371635738*100=2.68%

Interpretation: Equity ratio is increased to 0.20% in 2008 as compared to 2007

8.Current Assets to Proposition funds ratio: Formula: (Current Assets / Share Holder funds)

2008

237570059/11958673=1:20.89

2007

224588330/11377527=1:19.74



Interpretation: The ratio is showing an increasing trend in 2008 as compared to 2007

9.Return on Assets:

Formula: (Net profit after taxes / Total Assets * 100)

2008

1148529/415088990*100=0.27%

2007

461227/371635738*100=0.12%

Interpretation: Return on assets shows a favorable position in 2008.

10.Assets turn over Ratio:

Formula:(Total Income/Total Assets)

2008

14774278/415088990=1:0.0355

2007

11172207/371635738=1:0.030

Interpretation: The ratio is showing an increasing trend in 2008 as compared to 2007



11. Return on Deposits: Formula: (Net profit after taxes/Total Deposit)

2008

1148529/349617068=1:0.0032

2007

461227/316493342=1:0.0014

Interpretation: Return on Deposit shows of favorable position in 2008 as compare to 2007

12.Advances to Deposits: Formula: ( Advances/Total Deposits*100)

2008

170319096/349617068*100=48.71%

2007

140318362/316493342*100=44.3%

Interpretation: Advances to deposits in 2008 48.71% and in 2007 44.3% which shows a increasing

position as compared to 2007.

13.Solvencey Ratio:

Formula: (Total Assets / Total Liabilities)

2008

415088990/397578553=1:1.044

2007

371635738/354652821=1:1.047



Interpretation: Solvency Ratio has been decreased to 0.003 in 2008 as compared to 2007 which is a

satisfactory.

My observation during internship

Following are the things that I observed during my internship:

Poor customer service in this branch which create big hurdle for making goodwill

and profits so according to my point of view all employees of this branch need

training for improving customer service of the branch because customer is the king.

Excess employees is also a big dilemma which I feel there because bank needs

10 to 11 employees but 14 employees working in which branch.

Distribution of work or assignments is not balanced.

For the safety of the cheques the employee who have a right of authentication

and posting should be sit near or in the cash counter because it can reduce the

circulation of cheques for authentications or posting purpose.



SWOT Analysis Of BOP SWOT analysis can be performed on a product, on a service, a company or even on an

individual.

1-Strengths: Punjab GOVT.trust on Punjab Bank Salary accounts of companies Educated employes Fastest growing financial Institution Young and hardworking workforce

2-Opporunities:

Mega project financing in agriculture sector Boost infrastructural investment Upward revision of credite rating Growing trends of Islamic Banking

3-Weakeness:

Dependence on POL (Pakistan Oil Fields Limited) imports Physical exports Increas publis debts Less provide ATM facilites Work distrribution between emplouees are not well Overload on employees

4-Threats: Instability of contry conditions Rupee appreciation Instability of political conditions Fiscal deficit Less portfolio flows as compare to other banks Trend of mergers



Conclusion

Finally I conclude that due to the cooperation of all branch members I have been

able to learn many new things related to banking sector, I was able to run the day end

successfully at the end of each day, plus arranging all the vouchers, maintaining record

of branch, filling account opening form of customers and handle other tasks as well.

On the other hand I am able to complete this report under the super vision of my

Advisor and make all concepts clear in proper way.

THE BANK OF PUNJAB is a good Organization in the way that anybody can join it for

his/ her long-term career. Overall working environment is comfortable. Management is

very strong and above that it’s a government bank.

Employees of Bank of Punjab Raiwind road branch work more than their working hours and it is all according to their will in a friendly atmosphere. It also shows their

loyalty, commitment to organization. So it is considered in best branch of THE BANK

OF PUNJAB within short period of time this branch reached in top six branches of

Bank of Punjab due to employee’s efforts.



Recommendations

After doing a deep study I am able to recommend so following are my recommendation:

ATM machine must be installed so that increases the income of branch.

Improvement in the salary package On the bases of performance reward should be assigned.

To retain customer, bank should adopt competitive rates for its services.

Branch should focus on the consumer banking as well because it’s a good

source of income to branch. No entrance in the cash counters because this area is very sensitive and only

the cashier is allowed no other staff member. Cashier’s major responsibility is

to balance the cash at the end of day. When the cash is balance then other task

can proceed such as

o Run the day end

o Backup of after, before, offsite and week end day.

o Print all the sheets

o Send data to IT department

o Keep back up in order to maintain hand copy of data.

Online banking system for the entry of transaction was limitation because every

employee is responsible for his/her assigned task. In case if any wrong entry is

made then this will out the cash balance and create problem at the end of day.

Prohibited area was strong room where vault register and cash is kept only

three employees are allowed who got the keys of strong room i.e. Manager,

operation manager and the casher.

Not allowed to fill the blank cheque for the customer.



Branch senior staff Names Designation Contact#

Rana liaqat ali khan Manager 0321-8419825

M. Ashraf Gondal Manager Operation 0333-4380799

Khalil Ahmed O.G 1 0321-9407301

Sohail Ahmad O.G 1 0300-9211123

Manzar Ali AAA

Maryam Khalid BDO 03324677326



Appendix A Account Opening This form is used to open account in the bank and for every customer who want to open

account in the bank.

ATM Cash machine: an unattended machine (outside some banks) that dispenses money when a personal coded card is used. Account holder Any and all persons designated and authorized to transact business on behalf of an account. Authorized signature This is the signature of a senior executive such as the operation manager, manger and responsible persons. Assets Anything of material value or usefulness that is owned by a person or company. B Branch code Provide by the head office for the purpose of distinguish between the branches. Bearer The holder/owner of an instrument. BDO Business Development Officer. BBA Basic banking Account C Clearing Clearing means send cheques of other banks in relative banks on customer demand for receiving payments. CD Stands for current Deposit. Cheque A cheque is a piece of paper (usually) that orders a payment of money. CDR Call Deposit Receipt (CDR) is a security deposit for bids etc to the government, semi government institutions or autonomous bodies, also payable at issuing branch only.



Current Ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months.

D

Demand Draft

A method used by individuals to make transfer payments from one bank account to another. Demand Draft issued for out of city payment.

Deposit Slip

An itemized slip showing the exact amount of paper money, coin, and checks being deposited to a particular account.

DD

Demand Draft.

E

E-Banking Electorince banking F Foreign Currency Any currency that is in use in a foreign country. G General Ledger The ledger that contains all of the financial record that perfome in bank within a day. I Inward clearing Inward clearing means the cheques received by the bank from other banks for paymen. M Mergers The combination of two or more commercial companies.



Management Management that runs the business and company. N NIFT National Institutional of Facilitation and Technologies (Pvt.) Limited. NIFT provied clearing facilites from banks. O Outward Clearing When an account holder having some receivables and the other person give payment in

Cheque rather than cash.Outward clearning perfome within two banks that establish in

two different cities.

Owner Equity

Total assets minus total liabilities of an individual or company.

P Pay Order A document which instructs a bank to pay a certain sum to a third party. PLS Profit and loss saving account. R Remittnance form Form used for sending money online. Ratios Ratio expresses financial and success level of companies.

V Voucher A document that serves as evidence of some expenditure.

Vault Register

Vault register is placed is the strong room know as vault.



Reference www.bop.com.pk www.sbp.gov.pk http://www.brecorder.com

www.scrip.com

Wikipedia (www.wikipedia.com)

Citibank (www.citibank.com/pakistan)

Operational Manual of Bank of Punjab.

By the help of operational manager MR.ASHRAF GONDAL

BOP.pdf

Documents

Transcript of BOP.pdf