Zarai Taraqiati Bank Limited

On ZARAI TARAQIATI BANK LIMITED

Submitted By:
Fatima MPA 2nd Term Session 2010-12

In The Name Of
DEPARTMENT OF PUBLIC ADMINISTRATION GOMALMost Beneficent And The UNIVERSITY DERA ISMAIL KHAN

ALLAH
Merciful

Zarai Taraqiati Bank Limited

Zarai Taraqiati Bank Limited

DECLARATION
An internship report submitted to department of Public Administration, Gomal University DIKhan in partial fulfillment of the requirement for M.P.A

DEDICATIONS
To my parents whose unconditional love & support helped me in making this report. To my siblings for their gentle encouragement & valuable support. Also my dear mother for supporting me through out my tenure of learning as well as praying for my success through out my life and also in my future. Her prayers today make me so proud also my dear father for supporting me financially all my life, fulfilling my basic necessaries as well as luxuries of life. I am thankful to my parents for their support through out my study career. Today what I am, because of them.

Zarai Taraqiati Bank Limited

ACKNOWLEDGEMENT

All praise and gratitude due to ALLAH ALMIGHTY who created man in His own image and enjoyed upon him to travel on the earth and enter into a profound and analytical study of Universe for spiritual appreciation of ALLAHS unity and His attribute as well as for harnessing the material manifestation of the world to the mankinds profitable utilization. In the first place, therefore we express our utmost thanks to ALLAH. At the next stage I offer our gratitude to our Apostle and prospector Prophet Muhammad (P.B.U.H) for his golden saying Gain knowledge is in China. In the end I would like to thank all the staff members of ZARAI TARAQIATI BANK who cooperated with me in every department. They have cooperated with me in every department. They have provided me with valuable information which helped me a lot in completion of this report. It was relatively a new phenomenon for me, but I am quite sure that I have learned a lot from this internship.

Zarai Taraqiati Bank Limited

PREFACE
The pre-requisite of internship program is to make the students of M.B.A, aware of the practical expertise and to acquaint them with the real management process. With an intention of grooming the best executives of the future, Comsats institute of information technology Lahore has organized a comprehensive internshiptraining program. All of us were placed in leading organizations of business arena to gain first hand knowledge and insight into their management and working. So, when I was given the chance of selecting an organization, I opted for Zarai Taraqiati Bank Limited. Getting a chance of working in ZARAI TARAQIATI BANK LIMITED proved to be very beneficial for me. I think that I gained comprehensive insight into the working of a Bank. But nothing could have been possible without the cooperation and guidance of the officers of Zarai Taraqiati Bank Limited. After the completion of internship program, internship report has been prepared just in accordance with the practical exposure. In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite all of my coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me. FATIMA MPA 2nd SEMESTER Session 2010-12

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Table of Contents
EXECTIVE SUMMARY .06 VISION STSTEMENT.07 MISSION STATEMENT.07 HISTORY OF ZTBL. ..08 ZTBL LENDING SCHEMES..09 ROLE OF ZTBL12 BOARD OF DIRECTORS..15 SWOT ANALYSIS...16 ORGANIZATIONAL CHART..18 MARKETING STRETEGY..24 BUSINESS PROCESS ANALYSIS...28 COMPETETIVE STRETEGY.33 LEARNING AS INTERNEE38 CONCLUSION, SUGGESTION, RECOMMENDATION40 BIBLIOGRAPHY..43

Zarai Taraqiati Bank Limited

EXECUTIVE SUMMARY
This report consists of my six weeks internship at Zarai Taraqiati Bank Limited which is situated on Shahr Sultan at Alipur road. Consistently focusing on improving performance so that risks can be left far behind. ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of formal Agricultural Development Bank of Pakistan Ordinance of 1961. ZTBL started its services in 1961 under the banking ordinance 1961 as ADBP (agricultural development bank of Pakistan) till 2002, when it was transformed to Zarai Taraqiati Bank Ltd. (ZTBL) as it was provided with the funds by federal government, now ZTBL has to earn profit to sustain it as a financial institutions. The Companys management, combining innovative strategies, aggressive marketing, creative synergy and visionary approach together with a lean organizational structure capable of efficient response, succeeded in establishing ZTBL as the largest loan provider to the agricultural sector at international level.

Zarai Taraqiati Bank Limited

Corporate Vision:
Dedicated to serve the needs of the farming community, by delivering financial products and technical services on a competitive and sustainable basis, in a convenient, efficient and professional manner, leading to success of the Bank and the farmers.

Corporate Mission:
To play effective role in the promotion of economic growth, by enhancing the availability of credit to the agriculture sector, through reliable access to sustainable financing, special lending programs, technical assistance, and other products & services, and to promote career development opportunities for increasing professionalism and technical proficiencies of employees.

Zarai Taraqiati Bank Limited

ZTBL HISTORY:
Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared towards the development of agriculture sector through provision of financial services and technical know how. The restructuring of former ADBP is being carried out with the aim to uplift the agriculture and rural sector by raising farm productivity, streamlining the institutional credit and increasing income generating capacity of the farming community. ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of ADB Ordinance of 1961. The new corporate structure redefines the bank's status as a public limited company registered under companies Ordinance'1984 with an independent Board of Directors which aims at ensuring good governance, autonomy, delivering high quality. ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture financial/non-financial services to the rural Pakistan, comprising 68 % of the total population. The Bank through a country-wide network of 341 branches is serving around half a million clients annually and over one million accumulated account holders with the average loan size of around Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic and large growers respectively. The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as of 31.12.2005, with a nation-wide working strength comprises 5500 employees. The share of ZTBL in total national institutional agricultural credit remains around 35%.

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ZTBL LENDING SCHEMES:

1.Supervised agriculture credit scheme:
Under this scheme agriculture loans are given for short, medium and long term loans up to Rs.1.00 million per borrower/per case. The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube well and irrigation facilities etc. under the scheme besides provision of credit, information are to the farmers for planning the farm, production, guidance for implementation of the scheme, marketing and repayment of loans.

2.Zarkhaiz (one window operation):

For timely and conveniently provision of credit to purchase inputs, loans are provided to the borrowers less than One Window Operation being conducted twice a week during Rabi and Kharif seasons. All the related departments i.e. Revenue, Agriculture, Post Office etc. attend the focal points, established at convenient places. The farmers get their pass books prepared and loan applications processed on the same day whereas sanction payments are made within three days at Branch. For Rabi Crops one window operation from October to January and for Kharif Crops from April to September each year which is extendable as per requirement of particular area.

3. White Revolution Scheme:

PDDC (Pakistan Dairy Development Company) shall recommend good dairy farmer to ZTBL and send the loan request to the bank along with necessary documents. Initially the scheme will be for modernization of 5,000 farm during 5 years period. The modernization of dairy farm will be carried out through financing milk cooling tank, generator, voltage stabilizer, hot water geezer, water pump, cooling pad and other dairy equipment.

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4. Sairab Pakistan Scheme:

Water plays vital role to improve per acre yield. Out of total 31 million hectors area of Pakistan, 22 million hectors is cultivated while 9 million hectors is cultivable waste mainly due to non-availability of water. More over increase in water supply being a key input is required to raise cropping intensity and hence the income of the farmer. Since inception ZTBL financed over 143000 Tube wells amounting to Rs.15 billion. For raising irrigated area to accelerate the economic growth and to facilitate the farmers ZTBL has signed collaboration agreement with M/s KSB Pumps Company Limited (Company) on 28th May, 2007. Farmers of at least 3 acres land holding will be eligible to avail financing under the scheme provided loan proposal is feasible. ZTBL will disburse Rs.6 billion to the farmers for installation of 30,000 Tube wells/Turbines during the next five years. KSB Pumps Company will provide quality machinery/equipment for efficient pumping of water. The company shall also provide after sale service including replacement of parts/availability of spares etc. through its network of dealers.

5. Sada bahar scheme.

For providing timely input loans for crops and working capital for poultry and fishery etc, the Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year is made at the time of first application. The amount so assessed is treated as Revolving Limit provided it is within the security limit. The Managers are authorized to sanction such loan limits up to Rs.O.500 million. Scheme's main features are as under: Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the farmers during one year period. The documentation once completed remains applicable for three years with yearly cleanup/renewal without any further documents.

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The borrowers can draw the credit in lump sum or in installments according to his requirement. Like-wise he can repay in lump sum or in installments during the year when his cash position allows him. Pass Book containing transactions in his SBS Account is supplied to every borrower free of cost.

6.TEA FINANCING Scheme

In order to increase the tea cultivation in District Mansehra, Swat, Matta, Shangla par and Dir in Malakand Division, tea financing scheme has been introduced which would not only save the hard earned foreign exchange but would also help improve the socio-economic condition of the inhabitants of the area. The salient future of the scheme are given as under: a. Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed. Farmers owing land up to five acres are eligible to avail loans. Credit will be given in 3 installments: first year Rs.30,000/-, 2nd year Rs.15,000/- 3rd year Rs.15,000/- provided the disbursed loan is used properly.

b. The credit would be repayable within11 years with 6 years grace period with prescribed markup of 9% per annum. Rebate of 1 % will be allowed in mark-up on timely repayment and proper utilization of the loan.

7.Crop maximization project

Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan has launched Crop Maximization Project in 109 villages in various districts throughout the country to increase the productivity/yield of crops. Under the

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Zarai Taraqiati Bank Limited project MINFAL has to provide funds of Rs.299.893 million to ZTBL for disbursing loans to the project farmers for purchase of inputs. Till the time funds of Rs.168 Million have since been received by the Bank for the purpose. These funds are to be revolved for meeting input credit needs in the project villages till 30th June, 2014 after which Bank will return the principal amount to MINFAL. Accordingly Credit needs of the project farmers are being met by respective ZTBL branches through Village Organizations formed for the purpose. Duly the currency of the project Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its operational cost, however in case of default Bank's normal rate of return i.e. 9% p.a. will be applicable.

ROLE OF ZTBL
ZTBL is the only institution with total focus on agriculture, the back bone of Pakistan's economy, and a key player for alleviating poverty by ensuring greater outreach for cost effective and timely availability of credit to the farming community. Private sectors initiative is understandably lacking in this important economic sector with inherent risks. Therefore the agricultural loans provided by commercial banks are mostly tied to large agro based industrial projects in sectors like sugar, milk and juice plants etc. The real needs of the small farmers are production loans for agri inputs, and development loans for farm machinery and implements, which are almost catered by ZTBL. In addition ZTBL is required to play another important role in uplifting rural areas with special focus on women. The Bank is increasingly meeting the growing demand of the farming community in line with the Government's policy to revitalize the agriculture sector to play its role in strengthening the Pakistan's economy. During the year 2009 the disbursement of agri loans has increased from Rs. 55.9 billion in the year 2007 to Rs. 77.6 billion, registering an increase of Rs. 22 billion in just one and a half year since my taking charge of the Bank. Besides financing, we need to form partnerships with other countries to import latest technologies (financed through multilateral/bi-lateral sources) without which we will be left behind despite our competitive advantage in terms of climate and availability of fertile lands. Therefore I invited a number of delegations from Asian Development Bank, China, Australia and USA dealing with agricultural related 13

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Products and non-traditional items. The objective was to gain knowledge and experience from these countries and to apply such experience locally to increase the income of the poor farmers, I am glad to share with you that as an out come of these interactions ZTBL will not only benefit in obtaining technology but arrangement of credit lines through these visiting delegations is also expected as they are patronized by their governments. We plan to continue such interactions. The Bank's vision is to be the lead bank dedicated to serve the financial and technical needs of the farming community efficiently, competitively and on a sustainable basis to strengthen the agriculture sector leading to success of the Bank and the farming community. I feel immense pleasure to say that ZTBL has now become a vibrant and self-sustainable financial institution, while new agricultural technologies and various innovative packages of customer friendly products and services have also been introduced. This is all due to hard work, dedication and motivation of ZTBL team, which has resulted in taking financial health of the institution to new heights as well as meeting the credit and technological needs of our farmers contributing to the overall development of the agriculture sector. I take this opportunity to congratulate and appreciate all my colleagues and every member of our team who's untiring efforts have made it possible to achieve the highest ever performance of the bank in all sphere of its operations i.e. disbursement, deposit, gross profit, and reduction in non- performing loans*(Link for Performance Indicators). This commendable performance in the last two years of the present Government has been due to the dynamic leadership, support, vision and direction of the Honorable President of Pakistan Mr. Asif Ali Zardari and Honorable Prime Minister of Pakistan Syed Yousaf Raza Gillani for mechanization of farms, uninterrupted credit supply, expanded outreach that guided the Bank's management to translate the vision of the People's Government into reality. Now that ZTBL team has been assured that all good work would be rewarded, I do hope that the present pace and dedication would continue by our professionally competent team. Every member should resolve to surpass the last year's highest performance, using their best abilities and extending fullest cooperation to accomplish new dimensions for the Bank, and set an example for other institutions to emulate.

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Agriculture sector of Pakistan has an immense potential to become a driving force to accelerate the pace of growth in the country's GDP and to achieve the Government's target to put the economy on a fast track and sound footings. Let us all join hands to be part of the green revolution and make Pakistan stronger and self sufficient in all walks of life.

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Zarai Taraqiati Bank Limited

BOARD OF DIRECTORS:
1. MUHAMMAD ZAKA ASHRAF 2. MUHAMMAD SALEEM KHAN 3. MUHAMMAD JAVEED MALIK 4. ISKANDAR MUHAMMAD KHAN 5. MUHAMMAD ZAKRIA KASI 6. EJAZ HUSSAIN RATHORE 7. Mr. JAN ALI KHAN JUNEJO 8. Dr. WAQAR MASOOD KHAN 9. Mr. MANSOOR KHAN 10. Ms. RABIA SULTAN PRESIDENT ZTBL DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CHAIRMAN DIRECTOR DIRECTOR

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SWOT analysis ZTBL

Strengths:

The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as of 31.12.2005, with a nation-wide working strength comprises 5500 employees. The share of ZTBL in total national institutional agricultural credit remains around 35%. ZTBL has a recovery ratio of 85%. ZTBL has a social network of MCOs that work in every remote corner of country, where any other commercial bank cant dare to work. Utility bills, hajj schemes applications are being collected by ZTBL. It has introduced locker facility in some limited branches.
They have good cooperation with farmers; they meet them at least one time in a week, which produces good cooperation among them.

Weaknesses:
ZTBL has a less number of people who have technical skill of computer and information technology. Up till now many branches could not be brought to online system. As the ZTBL has to deal with the illiterate farmers that is why it has to keep itself as simple as the farmers mentality. The employees are promoted after a very long time that causes a distress among employees. Many branches still practice their daily transaction by book, which makes banking laborious and time consuming. Branches of ZTBL are ill equipped, less and poor quality furniture is provided. Record keeping is poorly practiced.

Opportunities:
ZTBL has a great potential to serve general banking. Deposit system introduction can generate funds for the bank. By making investment in new areas. Senior employees compliance with coordinators can enhance their working abilities. By developing technical education, the bank can increase its progress.

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Threats:
Book keeping is proven to be a greater threat for ZTBL as there is danger of record loss. There is no availability of online record which can produces confusions among loonies. Although the recovery ratio is round about 85% but it is only window dressing and not the actual one. There is no maintenance of duties by the staff. Their interest ratio is round about 9% per annum, which is very low from other commercial banks.

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ORGANIZATIONAL CHART OF OPERATIONS

Operations Division

Branch operations department

Business development and marketing department

Field operations unit 11

Field operations unit 11

Audit compliance

Business development unit

Marketing unit

DIVISION

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AIM OF OPERATIONS DIVISIONS

To ensure efficient and sound operations of the field organization of the bank, dissemination of agricultural technologies, make better provision for affording efficient banking facilities, develop liability products.

OBJECTIVES OF OPERATIONS DIVISION

1. Develop viable business products / services and achieve business targets. 2. Develop the business plans for the bank. 3. Enable farmers to enhance the agricultural productivity by mechanization. 4. Improve field operations and control system. 5. Control and monitor field activities.

FUNCTIONS OF OPERATIONS DIVISION

1 .Develop and market new products / services, evaluate current product / services to maintain and enhance competitive edge on Bank products. 2. Allocate deposit targets to zonal offices and its monitoring. 3. Support business development. 4. Analyzing and identification of weak areas. 5. Development of field expansion program. 6. Evaluation of the performance of branches and zones. 7. Carry out test and trial, of new viable agricultural technologies. 8. Dissemination of technical agriculture knowledge.

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ZONAL OFFICE SETUP

ZONAL CHIEF

ZONAL COMPUTER CENTRE

PA TO ZONAL OFFICE

MANAGER OPERATIONS

ZONAL MANAGER SAM

ZONAL MANAGER ADMINISTRATION

SENIOR OFFICER OPERATION

COMMUNICATION OFFICER

SENIOR OFFICER SAM

SENIOR OFFICER ADMINISTRATION

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LARGE BRANCH SETUP

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CHIEF MANGER VP

DEPUTY MANAGER AVP

ASSISTANT MANAGER OPERATIONS

ASSISTANT MANAGER CREDIT OPERATIONS

ASSISTANT MANAGER SAM

LOAN PORTFOLIO: ABOVE 700 MILLION RUPEES

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MEDIUM BRANCH SETUP

MANGER AVP

DEPUTY MANAGER SO

ASSISTANT MANAGER OPERATIONS

ASSISTANT MANAGER CREDIT OPERATIONS OFFICER

ASSISTANT MANAGER SAM OFFICER

LOAN PORTFOLIO: 3OO TO 700 MILLION RUPEES

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SMALL BRANCH SET UP

MANAGER AVP

ASSISTANT MANAGER OPERATION

ASSISTANT MANAGER CREDIT OPERATIONS OFFICER

ASSISATANT MANAGER SAM OFFICER

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MARKETING STRATEGY OF ZTBL:

ZTBL LAUNCHES CARBON CREDIT SCHEME:
IslamabadThe Zarai Taraqiati Bank Limited (ZTBL) has launched a proactive strategy to adopt all the economically viable technologies feasible for Pakistan to mitigate the effects of climate change. According to ZTBL press release, the proactive strategy has been formulated to capitalize the great business opportunity in trading carbon credit and solution to the problems of climate change, habitat loss rural poverty. The bank has made an agreement with CDBPAK, as consultants to quantify and capitalize carbon credits for ZTBL Carbon Credit, it added. It said that in view of changing climate patterns the agriculture sector was undergoing phenomenal changes including water scarcity, temperature variations, low soil fertility, increasing population, decreasing farm sizes and require a paradigm shift in the approach towards the agriculture The target clients of the ZTBL are farmers, who need to be apprised about using cheap and renewable sources of energy as well as water conservation techniques to reduce carbon emission and at the same time enhancing the agriculture productivity at their end, it added. Realizing the challenges of the global climate changes in the 21st century ZTBL has emerged as a pioneer in the sector, the press release said adding that it has assumed the role of a green bank by adopting an environment friendly approach Agencies.

GIVING LOANS ON EASY TERMS:

Bahawalpur: On the special directives of President Asif Ali Zardari, Zari
Taraqiati Bank Limited (ZTBL) is giving loans to farmers on easy terms and conditions so that enhanced production of agricultural crops could be achieved. This was stated by President ZTBL Ch. Zaka Ashraf while talking to APP here. He said under a special package, ZTBL provides 90% investment to the growers And all out efforts are being made to make them self-reliant and bring prosperity to the country. Ch. Zaka Ashraf told that 10,000 tractors have been provided to the farmers while 20,000 more tractors will be given to growers under Benazir Tractor scheme, adding loans will also be given to the growers under the

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Zarai Taraqiati Bank Limited scheme. President ZTBL said that loans worth Rs. 72 billion will be given to the farmers while solid steps are also being taken for the recovery of Rs. 75 billion from the defaulters. He said, the government wanted to bring green revolution in the country. Latest methods are being introduced and utilized to achieve the target, he added.

ZTBL AND FLOW OF RURAL CREDIT:

One of the marketing strategies of Zarai Taraqiati Bank Limited is the increasing flow of rural credit. As we know that the agriculture is the crucial contributor to the national economy: Contributes a quarter to GDP. Employs 47% labor force. Over 50% of industrial production comes from agro business. Earns (directly or indirectly) 70% of export revenue. Provides livelihood to 67% rural households. Vast Majority of poor live in rural areas (nearly 80% of all poor live in rural areas). Poor are mainly dependent on agriculture for their food and livelihood security Livestock is an important of livelihood for the poor.

Agricultural growth contributes most to poverty reduction. Through forward and backward linkages, agriculture. Contributes to rural economy (farm and non farm) and creates livelihood for poor in the nonfarm sector. The main source of agricultural growth includes: Dates, Mangoes, Citrus and Potatoes are high value potential horticultural crops. Floriculture is fast growing sub sector, influencing domestic as well as export markets. Remunerative opportunities exist for entrepreneurs in agri-business identified high return agri-businesses include:

Livestock fattening.
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Milk collection and chilling. Cut flowers. Fruit processing.

Accelerated growth of agriculture, especially of high value agricultural activities, will continue to be cornerstone of Government overall strategy to reduce poverty. ZTBL and micro-finance institutions; need to increase flow of rural credit. During 2005-06 ZTBL disbursed Rs48 billion credits and total credit 137 billion, meeting less than one third of the total demand for Credit. Cumbersome legal process and lack of political will creates problem for loan recovery. Access to credit remains limited and restrictive by lengthy processes and smallholders are generally left out. But in ZTBL the process is too shortened and easily accessible that all the smallholders are entertained.

MARKETING STRATEGIES OF ZTBL:

There are a number of marketing strategies of Zarai Taraqiati Bank Limited some of these strategies are listed below;

Crop Insurance:
The Benazir Credit Card Schemes and Crop Loan Insurance Schemes have also been introduced for the benefit of cotton, rice and other crops growers. Crop insurance Schemes have been considered an impractical dream by the insurance sector for quite long, but innovative solutions designed by National Insurance have made it a practical option. NICL and National Bank of Pakistan have prepared an Agri Loan Insurance Policy properly supported and backed by the re-insurance arrangements at a reasonable competitive cost. Through this collaboration, agri loans of more than Rs.30 billion have been provided insurance cover. Similarly, ZTBL has also been provided the facility of Agri Insurance Cover.

Tractor Scheme:
The Tractor Scheme was launched to provide tractors to the farmers at a subsidized price. A large number of tractors are to be distributed amongst the farmers on very low interest rates. The ZTBL is supplying high

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Zarai Taraqiati Bank Limited efficiency irrigation system to farmers to improve agricultural activity in areas of scarce water. ZTBL provides tractor to farmers that have 10 acres agricultural land. The recovery of loan is on easy terms. The farmers have to pay back the loan in 8 years. The installment is semiannually Which is round about 50,000 rupees. In this way the farmers can easily pay back the amount.

Availability of Quality Seeds:

ZTBL decided to ensure the supply of quality seed, one of the most important inputs in crop production, to have maximum yields in all crops. As a result, production of almost all major crops, including wheat, rice, maize, gram, moong and pearl millet, rose significantly. A special project of improving vegetables seeds at local level has also been initiated.

Agricultural Loans:
During 2008-2009, the Government earmarked Rs.250 billion, higher by 20% over the preceding year, for banks to finance the farming community. This amount for the current fiscal is Rs.260 billion for major and minor crops, orchards and forestry. Credit limit was increased because of rising prices of all inputs including electricity. Crop loan insurance scheme was also introduced to enhance the access of farmers to agricultural loans. Provision of agricultural credit to farmers facilitated them to procure the costly inputs in order to ensure the target planting and production of various crops. A new Agriculture Mode Village Program has been initiated in 26 villages under the auspices of Zarai Taraqiati Bank Limited (ZTBL). The objective is to organize the farming community at the village level ensuring farmers easy access to agri credit.

ZTBL and Field Work:

One of the main marketing strategies of Zarai Taraqiati Bank Limited is the field work. Through which the ZTBL officers visit the agricultural land and meet the people, in this way they are able to know about the forming land and also about the people. And the people too became conversant with the officers and in this way they are able to know about the lending schemes. ZTBL is also promoting hajj and umrah schemes.

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BUSINESS PROCESS ANALYSIS:

ZTBL AND PRODUCTIVITY: ENHANCEMENT OF CROP

The economy of Pakistan is predominately agrarian in character. Despite progress in other sectors the agriculture sector is contributing about 25% towards the GDP. About 67.5% of the total population lives in rural areas and the agriculture is main source for their livelihood. About 44% of the labor force is engaged in agriculture sector and about 70% of the direct and indirect income is generated from this sector. The agriculture sector is multi-segmental. Majority of our farm community comprised of subsistence farmers who are not in a position to use high quality seeds, sufficient fertilizers and improved farm implements due To the lack of finances available to them. Lack of finance is one of the main reasons for low per acre productivity in our agriculture. The matter of enhancing agricultural productivity therefore largely depends on the availability of finance and credit facility available to the farmers in their respective areas (ADBL, 1996). Every modern business is operated on capital or borrowed capital. Similarly, farming also requires capital. The need for farm credit in increasing production and effective utilization of farm resources is quite clear. Farming not only require credit in the form of improved seeds, fertilizer and modern implements but also requires liquid capital for financing harvesting, haulage of produce and other similar farm operation (ADBP, 1996). In Pakistan there are two major sources of agricultural credit, non-institutional and institutional sources. The non-institutional credit suppliers include friends; neighbors and professional moneylenders are the main source of credit in the country. Institutional sources comprise of cooperative banks, Zarai Taraqiati Bank Ltd. (ZTBL), nationalized and privatized commercial banks and Taccavi credits (ADBP, 1996). Zarai Taraqiati Bank Ltd. (ZTBL) consolidated and intensified its operation to play an effective role in financing of farm investments to modernize agriculture, increase farm production and raise farm income. The bank continued to push forward the on-going programmes and projects relating to provision of credit and technology to targets groups covering landless, subsistence, small farmers and rural women through its credit programmed (Government of Pakistan, 2001). The objectives of the study were as under: Analyze the utilization of credit by small farmers in the study area,

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Zarai Taraqiati Bank Limited Compare the effects of utilization of credit on crop production and income of beneficiaries without credit and with credit. Suggest measures as to how the present credit scheme can further be improved.

The present study was conducted to examine the utilization and effects of short-term credit from Zarai Taraqiati Bank Ltd. (ZTBL) at Tehsil Kabul area of district Swat in August 2003. Eighty respondents were selected in which forty were the beneficiaries of ZTBL and the remaining forty were the nonbeneficiaries selected from the same area. Paired sample t-test was used to compare the production and income of the beneficiaries without credit and with credit. Independent sample t-test was used to compare the production and income of beneficiaries with non-beneficiaries. On overall basis beneficiaries farmer utilized 78.84% of the amount of credit for the purpose it was received. While the remaining amount i.e. 21.15% was mis-utilized. Per acre production of beneficiaries with credit for tomato, wheat, maize and onion were 170.4 maunds (1 maund equal to 50kg), 24.6 maunds, 39.4 maunds and 152.4 maunds, respectively. In case of beneficiaries without credit it was 139.6 maunds, 18.93 maunds, 30.3 maunds and 130.7 maunds, respectively on per acre basis. While in case of non-beneficiaries it was 144.5 mounds, 19.25 maunds, 32.2 maunds and 135.3 maunds, respectively on per acre basis. Net return of beneficiaries with credit for tomato, wheat, maize and onion was Rs.17410.9, Rs. 3908.67, Rs. 7695.75, and Rs. 16450.5, respectively on per acre basis. While beneficiaries without credit it was Rs. 11863.21, Rs. 2195.54, Rs. 5981.17, and Rs. 10968.9, respectively on per acre basis. In case of non-beneficiaries it was Rs. 13616.85, Rs. 2830.15, Rs. 6600.88, and Rs. 13465, respectively on per acre basis.

ZTBL AND BUSINESS SCHEMES:

ZTBL (Zarai Taraqiati Bank Ltd) formely known as Agriculture Development Bank of Pakistan has been struggling since the last couple of decades to optimize its operational efficiency. There has been tremendous pressure both by the State Bank of Pakistan and BOD to design and implement an effective Enterprise Resource Planning (ERP) system using Information Communication Technology to enhance Regulatory Compliance, offer better KPI monitoring and improved real time Management Information System enabling the Bank to launch new ICT based schemes/products for farmers and HR Performance Management System.. After a considerable lapse of time; ZTBL has experienced in the last two years a most productive growth. The executive management has managed to successfully convert the highly demoralized non-productive HR workforce into

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Zarai Taraqiati Bank Limited productivity mode. Through the newly revamped productive HR workforce the Bank has posted an overall 1.6 billion rupees in profits.. The Information Systems Division has been reorganized and revamped through the induction of highly skilled and seasoned human resource and has enabled the bank to do on-line loan processing using the banks own newly established Wide Area Network (WAN). The efforts of the ISD development team towards the successful modification of the architecture of the legacy loan processing system has resulted in effectively conserving more than twenty years of continuous business processes improvements of investment. Through the successful modification in the architecture of the existing legacy system; ISD has enabled the field offices to run real-time online processing jobs centrally running on the servers at Head Office Data center. This improvement now offers the entire portfolio of products and services to the branch offices. The Branch staff can now entertain loan processing application, recovery and/or release of installments under products like regular loan, Sada Bahar, White revolution etc on the terminals in the branches. This radical new development in the Banks ICT infrastructure has offered tremendous operational efficiency. For example in the past the Branch office staff conducted business manually and then hardcopies of the transaction data was manually fed into the system on a weekly basis at the zonal offices. Upon completion of the data entry of all branch offices within a zone was completed, the Zonal office would then dispatch the consolidated data on tape cartridges through courier services to the head office. Due to this process; at Times considerable delays were experienced by the Bank for the compilation of consolidated nationwide bank position. There had been numerous monitoring, reporting and performance management issues just because of the fact that HO was not able to have complete digitized record of business transactions. The newly revamped Centralized loan processing system would now enable the bank to improve the operational efficiency tenfold with an overall reduction of operational expenses. The Bank has selected ORACLE ERP in order to revamp the entire BackOffice operations. In this regard, ORACLE University is currently conducting a two and half months long rigorous training program for more than 120 bankers. In order to fulfill State Bank regulatory compliance with reference to the maintenance of NADRA verified client records; ISD has successfully conceived, designed and developed an integrated end to end loan processing system by

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Zarai Taraqiati Bank Limited mapping the ZTBL loan processing system to NADRA data base with a further integration to the State Bank of Pakistans eCIB database. Also the Loan processing system, Deposit Management system, NADRA verification and Customer Credit worthiness are all seamlessly integrated together. Since a few months ago, Data Cleansing in conformity to SBP and ZTBL business procedure was conceived as difficult, if not impossible as the entire physical record was available in the branches and there was no interface even at Zonal offices to verify physical record with computerized loan processing system, NADRA and SBP-CIB system. ISD has also designed, developed and implemented Deposit Management System at Branches as an extension of loan processing system. Most modern database management system is being used to digitize the existing semi manual deposit management system. DMS has been designed to allow the bankers to post transaction themselves by using most modern concepts like photo and signature verification on the screen. With the deployment of the new system; all records would now be verified by NADRA, checked for credit worthiness from the State Bank. It has been planned that by the end of June, 2008, more than 250 branches would be equipped with necessary hardware with preinstall DMS and NADRA verified clients from on-line processing system.

EUROPEAN UNION AND ZTBL:

ZTBL was poised to serve the technical needs of the entire community. The Bank took lead in serving over 0.5 million farmers and hoped to extend its outreach to strengthen the agriculture sector. It was said by president ZTBL, MUHAMMAD ZAKA ASHRAF on the meeting held at head office before European Union delegates. He said that ZTBL was poised to play more proactive role for the development of agriculture sector and alleviate rural poverty. This would have lasting impact in modernizing and boosting agriculture sector for the country. The president said that through its countrywide network the ZTBL being the largest financial institution has achieved the highest landmarks of performance during the last two years as it increased its disbursements from Rs.56 Billion to Rs.77 Billion, recovered Rs.73.8, and earned Rs4.6 Billion profit before tax. This has given financial strength and viability to the bank. He further appraised that code of corporate governance and control system has also been implemented. 34

Zarai Taraqiati Bank Limited

CHINESE FIRM AND ZTBL:

China would introduce alternate energy technology for agriculture development in Pakistan that would facilitate the farmers to meet their energy needs through alternate resources in cost effective manner. Most recently ATBL has inked an agreement with Chinese firm Ms Xi` an Hong Yuan equipment in Islamabad. Under the agreement, the company will bring equipments for demonstration at their own cost and expanse. They will make demonstration of their own Equipment to introduce new technologies and make available for the forming sector. On successful demonstration the product will be marketed through kissan support services. Speaking on the occasion, the president ZTBL Ch Muhammad Zaka Ashraf expressed the hope that the agreements would a long way in promoting the agriculture in the country besides benefiting the farmers.

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COMPETETIVE STRATEGY OF ZTBL

COMPETETIVE STRATEGY:
The strategy by which the organizations producing same or substitute products compete with each other. The fourth specialized government-owned bank, Zarai Taraqiati Bank Ltd. (ZTBL), needs financial and operational restructuring. This bank is highly strategic, as it provides about one third (31.7%) of all credit to the agriculture sector. Different public sector approaches have failed in the past to transform ZTBL. The most important unresolved issue is its excessive debt liabilities as well as shareholding pattern. SBP has proposed that the Government should pave the way for its eventual privatization, considered to be critical for augmenting its scale and efficiency.

Agricultural Credit:
Credit requirements of the farming sector have been increasing over the years mainly due to the rise in the use of fertilizer, pesticides and mechanization. In order to cope with the Agriculture increasing demand for agricultural credit, institutional credit to farmers is being provided through Zarai Taraqiati Bank Limited (ZTBL), Commercial Banks, Punjab Provincial Cooperative Bank Ltd (PPCBL) and Domestic Private Banks. The Government has allocated Rs 160 billion for agriculture credit disbursements for the year 2006-07 which is 23.1 percent higher than the allocation of the preceding year i.e. Rs 130 billion. The allocations, however, are totally voluntary and indicative in nature as the mandatory allocations policy has been totally phased out and the allocations for commercial banks have also been made indicative. The elimination of mandatory credit allocations coupled with active involvement of commercial banks in agricultural finance is major milestone achieved towards mainstreaming of Agricultural finance in the countrys financial system. The flow of necessary funding to the sector will now be ensured through conducive policy and regulatory environment, policy advocacy and promotional initiatives and monitoring of agri-disbursements and portfolio build-up plans. Out of the total Credit target of Rs 160 billion, Rs 80 billion were allocated to commercial banks, Rs 48 billion to ZTBL, Rs 9 billion to Punjab Provincial Cooperative Bank Ltd., and Rs 23 billion to Domestic Private Commercial Banks. The agricultural loans extended to the farming community during July-March, 2006-07 are discussed below:

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a) Production and Development Loans:

Agricultural loans amounting to Rs. 104.8 billion were disbursed during (JulyMarch, 2006-07) as against Rs.91.2 billion during the corresponding period last year, thereby registering an increase of 15 percent. The share of ZTBL in supply of total agricultural credit by institutions increased and was 32.9 percent during (JulyMarch, 2006-07) while it was 31.8 percent during the same period last year. However, the share of Commercial Banks has surpassed the share of ZTBL; it was 46.8 percent of the total agricultural credit disbursed during July March 2006-07. While the share of PPCBL has also slightly increased as it stood at 5 percent in supply of total agricultural credit by institutions. The share of domestic private bank has increased; it was 15.3 percent as compared with 12 percent in the corresponding period of last year. Supply of agricultural credit by various

b) Loan under One Window Operation:

ZTBL has launched a one-window operation to enhance credit facilities particularly to small farmers. This will facilitate to cater for purchase for inputs during peak sowing season of both Rabi and Kharif Crops with the collaboration of Provincial Governments, Revenue Officials and Postal Authorities. Agriculture Pass books are issued at the spot to intending new borrowers. Their land record is entered and loans are sanctioned at focal points whereas payments are released on the very next day from the concerned branch. During July-March, 2006-07, an amount of Rs 9.069 billion has been disbursed under this scheme.

c) Revolving

Finance

Scheme/Sada

Bahar

Scheme:
For providing timely input loans for crops and working capital for dairy, poultry and fisheries, the ZTBL launched Sada Bahar Scheme (SBS). Under this scheme credit requirements for inputs for the whole year is assessed and made available to the borrower. The Managers are authorized to sanction loan up to Rs. 0.5 million. During (JulyMarch, 2006-07), ZTBL has disbursed loans of Rs. 30.912 billion under Revolving Finance Scheme (RFS) and Sada Bahar Scheme (SBS) as against Rs. 24.149 billion disbursed during corresponding period of last year, indicating an increase of 28 percent.

d) Credit to Women Program:

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Zarai Taraqiati Bank Limited The major objective of this programme of ZTBL is to make credit more accessible to rural women through Female Mobile Credit Officers (FMCOs). Under Credit to Women Program, women can meet their credit needs through both Micro Credit & General Credit Scheme. Presently, 17 FMCOs are exclusively looking after credit needs of women in 17 branches of the Bank, whereas female borrowers may also obtain loan through male MCOs throughout the country. During (July March, 2006-07) loans of Rs. 99.572 million have been disbursed under this programme.

e) Micro Credit Scheme:

Under the Micro Credit Scheme of the ZTBL, all the Mobile Credit Officer working in the branches process micro credit cases both for men and women to engage rural poor in income generating activities/cottages industries. Financing under this program is provided for 136 loanable items. All loans are recovered within 18 months of their advancement.

f) Crop Maximization Project:

In order to augment the efforts of the Government to enhance productivity on sustainable basis, Ministry of Food, Agriculture and Livestock (MINFAL) and Zarai Taraqiati Bank Limited (ZTBL) have launched, Crop Maximization Project. The project aims at assisting the farmers to increase agriculture production. A total of 109 villages are being covered under this project. In the project villages, Village Organization (VOs) have been established which organize the farmers and assist them with the collaboration of Agricultural (extension) Staff in achieving the maximum productivity through proper use of inputs, water saving devices and modern agricultural technology. Farmers owning up to 25 acres land are entitled to receive loan from project credit line through Mobile Credit Officers. Under this project Rs 371.403 million has been disbursed during JulyMarch, 2006-07.

ENHANCING THE COMPETETIVENESS:

To enhance the competitiveness, ZTBL is focusing on continuing to broaden and deepen the financial system further. To prevail in the industry Zarai Taraqiati Bank is Reviewing the actual behavior and conduct of banks related to its structure and than taking the required actions. Resisting contestability. Development of non-bank financial intermediaries is promoting competitiveness

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Zarai Taraqiati Bank Limited Increase demand for advances results in a need for higher deposit mobilization which increases competition. Interest rates in Pakistan are usually non-transparent. Ninety percent of deposits are remunerated through profit and loss sharing arrangements rather than at explicit interest known to the depositor in advance. But in ZTBL the interest rates are known to the depositor in advance. That is a good competitive strategy and due to this strategy, the bank is on the way to success. To improve transparency in the pricing and documentation of loans, ZTBL has been barred from including any clause in the loan documents that could allow them to change lending rates unilaterally and make Explicit all service charges so that the borrower will not incur hidden charges during the term of the loan. Growth in agricultural credit recovered in financial year 2008, after a relative slowdown in the preceding two years. The agricultural credit disbursements rose to Rs. 211 billion in financial year 2008, up by 25.4 percent. The domestic private banks fared well both in disbursements and in the recoveries while specialized banks could not maintain their market share. A strong resurge in the number of borrowers is also a welcome development during financial year 2008. The number of borrowers increased to 1.28 million during financial year 2008 as against a declining trend in the previous three years. Despite, rise in interest rates amid monetary tightening, a significant increase in agricultural credit and number of borrowers during financial year 2008 is principally attributed to 5 Agricultural credit disbursement target for financial year 2009 is set at Rs. 250 billion. The main thing to say is that about 25% of this agricultural credit is taken from Zarai Taraqiati Bank Limited. The structural changes in agricultural credit are shown below which manifests that the major share of agricultural credit is received from specialized banks and ZTBL is the leading one.

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Learning as an internee
Duties Reconciliation of bank statements. Reconciliation of customers ledgers. Preparing payment vouchers. How the loan given to the employees. Company uses both system of manual and computerized so account manager give me the opening and closing balances of last month inventories to check the posting that manual entries into the system. I check them and point out some missing entries and give my report to account manager that which entries are missing. I calculate the working days of employees and last year and the prepare bonuses for the employees and allowance to employees to have full attendance last year.

. New Knowledge Acquired

Discussion with management. Knowledge of organizational culture. Accounts management. This is the core part of my fresh knowledge that I gained while working in the Bank.

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Accomplishment
The overall working environment was very good in which I learned a lot. Got an opportunity to work in a well known organization. Completed all of my duties on time. Improved my confidence and communication skills by talking to advisor and other managers. Learn about effective information dissemination within office environment.

Impact of Experience on my Career

As I am a student of Public Administration, so my experience as an internee in this company will help me in future when I get the full time job as a professional. I have learned about, How to let people know about your product/ services. Analyzing competitors and markets that any one doesnt copy your product. Through this internship experiences of working into an organization help me to understand rules and regulations, duties during my career.

Conclusion, Suggestions and recommendations

Zarai Taraqiati Bank Limited is a well known well reputed and well established organization in Pakistan; every thing in the organization is outstanding. All the departments are working properly; working environment is very good after spending 6 weeks in Finance department of the Zarai Taraqiati Bank Limited Interacting with the employees, getting their views, observing the organizational structure and design, some of the following recommendations have been given.

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Conclusion
I will conclude my report by saying that my training program at Zarai Taraqiati Bank Limited was a mighty experience, in terms of learning, dealing with people, getting the how know of the working of organizations and the intricacies of practical life. Such an experience is a necessity for every business student as it helps one in choosing the area of work to adopt in professional life. This training program sets a strong basis for students about to enter professional life to do the correct career counseling for themselves in accordance with their ability to integrate work with knowledge, their learning capacity and the ability to sustain pressures. Training and awareness of personnel in all sectors and at all levels is required to face the future challenges. Adaptation of globalization, spectacular developments in information technology, internet, e-commerce etc is required.

Suggestions
Zarai Taraqiati Bank Limited is a huge name in the agricultural sector and a large number of loans are provided to the agricultural sector by the Zarai Taraqiati Bank Limited but I experienced some problems that should be encountered. These problems are: Transportation facility is not provided to the whole employees, it should be provided to them. Proper training of I. T should be given to all the employees, as it is necessary to the company benefits.

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Recommendations
Top managerial personnel should be trained both at company premises and at the international level. Managers are required to get training in the modern scientific management control methods.

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BIBLOGRAPHY
WWW.ZTBL.COM.PK WWW. GOOGLE .COM.PK AUDIT REPORT 2008-2009 ANNUAL REPORT 2008-2009

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