Virtual University of Pakistan

Evaluation Sheet for Internship Report

Fall 2010
FINI619: Internship Report (Finance) Credit Hours:
Na!e of Student: "#H$""$% &$SI' S$(EE"
Student)s I%: "C*+*,*1-++
Evaluation Criteria Result
Report .ritin/ Pass
0resentation 1 2iva voce
Final Result
Internship Report
Start preparin/ for presentation 1 viva voce and i!prove 3our .or45 $lso read lesson 6 + of
this course5
7our concepts re/ardin/ 3our internship .or4 and ratio anal3sis !ust 8e ver3 stron/ for
deliverin/ an effective presentation
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Internship Report
Virtual University of Pakistan
Evaluation Sheet for Internship Report
Fall 2009
FINI619: Internship Report (Finance) Credit Hours:
Na!e of Student: "#H$""$% &$SI' S$(EE"
Student)s I%: "C*+*,*1-++
Supervisor:
Evaluation Criteria Result
Report .ritin/ Pass
0resentation 1 2iva voce
Final Result
iii
Submitted To:
Virtual University of Pakistan
Submitted By:
"#H$""$%
&$SI' S$(EE"
I%: "C*+*,*1-++
Fall9:**-
Su8!itted %ate
::9*9:*1*
Internship Report
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Internship Report
LETTER OF UNDERTA!N"
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Internship Report
vii
Internship Report
#$AND $OP% OF !NTERN#&!P $ERT!F!$ATE
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Internship Report
DED!$AT!ON
I dedicate this internship report to my parents, especially elder
brother !"I# $!R!% and &!'I( )**R +!SS!), Because
of their prayers and encoura-ement I have been able to complete
this report,
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Internship Report
A$NO'LED"E(ENT
Praise is to !llah, the most /racious and &erciful, 0ho blessed me 0ith the kno0led-e
and 0isdom and enabled me to overcome this task, +eartiest -ratitude to my parents
0ithout their continuous encoura-ement and love I could not have accomplished this
task,
I am very -rateful to all the staff members at &1B (hayaban Sar0ar Branch, #era /ha2i
(han, "rs5 $as!a, "rs $;ara< 1 "r5 "a=sood $h!ed for their -uidance and
encoura-ement,
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Internship Report
E)E$UT!VE #U((ER%
&1B is one of the leadin- banks of Pakistan 0ith a deposit base of about Rs, 345 billion
and total assets of around Rs,655 billion, Incorporated in 789:, &1B soon earned the
reputation of a solid and conservative financial institution mana-ed by e.patriate
e.ecutives, In 78:9, &1B 0as nationali2ed alon- 0ith all other private sector banks, The
Bank has a customer base of appro.imately 9 million, a nation0ide distribution net0ork
of over 7,5;6 domestic branches, : international branches and over 9;5 !T&s in the
market, The number of employees increasin- and the increase in the number of
employees <oinin- &1B Bank sho0s that people feel confident in &1B Bank as a
prospect employer,
&1B operates in 6 directions 1onsumer, 1orporate and 1ommercial bankin- 0ith a lar-e
number of products and services, The financial ratios analysis sho0s that the financial
position of the bank is stron- and &1B is 0orkin- 0ell in the Bankin- sector, !lso its
hori2ontal and vertical analysis of Balance Sheet and Profit and 'oss account sho0s that
&1B is one stron-est bankin- or-ani2ation in Pakistan,
The stock prices and earnin- per share of the bank have also increased over the years,
&1B Bank promotes its products and services throu-h print and electronic media, &1B
Bank also promotes itself by sponsorin- different events,
#urin- the course of internship I learned about documentation re=uirements and record
keepin- for different activities and processes, especially the documentation re=uirement
for different kinds of financin- facilities, and documents for the product and services,
&1B has stren-ths and opportunities, But there is also 0eakness and threats, That could
be control by improvin- the total mana-ement, !ll the report is consist on ori-inal data,
The mostly data -et from &1B official 0ebsite,
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Internship Report
TA*LE OF $ONTENT
'>TT>R *$ U)#>RT!(I)/,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,vi
S1!)# 1*P? *$ I)T>R)S+IP 1>RTI$I1!T> ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,viii
#>#I1!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,i.
!1()*'>#/>&>)T,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
>@>1UTIV> SU&&>R?,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.i
T!B'> *$ 1*)T>)T,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.ii
*R/!)I%!TI*) BUSI)>SS S>1T*R *V>RVI>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,7
A!B B!)(I)/ S>1T*R *V>RVI>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3
ABB *R/!)I%!TI*) BUSI)>SS S>1T*R,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6
*V>RVI> *$ *R/!)I%!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,:
A!B BRI>$ +IST*R?,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,4
ABB )!TUR> *$ T+> *R/!)I%!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,76
A1B BUSI)>SS V*'U&>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,74
A#B PR*#U1T 'I)>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,35
A>B 1*&P>TIT*RS ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,95
*R/!)I%!TI*) STRU1TUR>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,9;
A!B +I>R!R1+? *$ &!)!/>&>)T,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,9C
ABB )*, *$ >&P'*?>>,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,98
A1B &!I) *$$I1>S,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,98
A#B I)TR*#U1TI*) *$ !'' #>P!RT&>)TS,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,;5
P'!) *$ I)T>R)S+IP PR*/R!& ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,;C
A!B I)TR*#U1TI*) *$ T+> BR!)1+,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,;:
ABB #UR!TI*) *$ &? I)T>R)S+IP,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,C3
A1B #>P!RT&>)TS I) +I1+ I /*T TR!I)I)/ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,C3
TR!I)I)/ PR*/R!&,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,C6
A!B !1TIVITI>S P>R$*R&># B? T+> #>P!RT&>)TS *$ BR!)1+,,,,,,,,,,,,,C9
ABB #>S1RIPTI*) *$ T!S(S T+!T I 1*&P'>T>#,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,::
STRU1TUR> *$ T+> $I)!)1> #>P!RT&>)T,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,45
A!B #>P!RT&>)T!' +I>R!R1+? ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,47
ABB )*, *$ >&P'*?>> *R(I)/ I) $I)!)1> #>P!RT&>)T,,,,,,,,,,,,,,,,,,,,,,43
A1B $I)!)1> !)# !11*U)TI)/ *P>R!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,46
$U)1TI*) *$ $I)!)1> #>P!RT&>)T,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,4;
A!B $I)!)1> S?ST>& *$ T+> *R/!)I%!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,4C
ABB $I)!)1> !)# !11*U)TI)/ S?ST>& *$ T+> *R/!)I%!TI*),,,,,,,,,,,,44
A1B S*UR1> *$ $U)#S,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,89
A#B !''*1!TI*) *$ $U)#S,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,8C
1RITI1!' !)!'?SIS,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,84
A!B R!TI* !)!'?SIS,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,757
ABB +*RI%*)T!' D V>RTI1!' !)!'?SIS ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,77:
A1B I)#USTR? !)!'?SIS,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,737
A#B $UTUR> PR*SP>1TS *$ T+> *R/!)I%!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,736
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Internship Report
S*T !)!'?SIS *$ *R/!)I%!TI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,739
1*)1'USI*),,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,734
R>1*&&>)#!TI*)S,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,738
R>$>R>)1>S !)# S*UR1>S,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,767
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Internship Report
OR"AN!+AT!ON *U#!NE## #E$TOR
OVERV!E'
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Internship Report
,A- *AN!N" #E$TOR OVERV!E'
PakistanEs bankin- and finance sector -re0 by over 37 percent from "uly 3559 &arch
355; amid the ei-ht percent e.pansion in the services sector in Pakistan, $inancial sector
in Pakistan is -oin- throu-h a fast paced transition as ne0 -roups 0ere buyin- out
forei-n banksE operations in Pakistan, The number of listed banks is also increasin-,
hile the income from core bankin- activity has increasin- due to hi-her business
volume, earnin-s are also e.pected to improve due to ventures into consumer finance,
housin- finance and enhanced lendin- to the a-riculture sector,
In <ust four years the bankin- industry has e.panded tremendously and no0 there are
more than t0o do2en commercial and investment banks operatin- in the country,
1ommercial banks in the private sector had performed 0ell since their inception,
re-isterin- overall -ro0th in the deposit base and profits, The banks also mana-ed to
maintain a healthy credit portfolio,
$orei-n banks have a stron- presence in all ma<or cities and are tar-etin- hi-h net 0orth
individuals and blue chip companies, Their strate-y is =uite successful as they account
for about 69 percent of total sector profits, despite havin- only 7; percent of deposits and
7C percent of advances,
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Internship Report
,*- OR"AN!+AT!ON *U#!NE## #E$TOR
$or effective handlin- of branches, it has cate-ori2ed into se-ments 0ith different people
handlin- each cate-ory, these cate-ories are:
aB 1*&&>R1I!' B!)(I)/
bB 1*RP*R!T> B!)(I)/
cB 1*)SU&>R B!)(I)/
a) C>""ERCI$( &$N?IN@
The branches 0hich has a credit e.posure of less than Rs, 755 million but havin- a credit
portfolio of more than Rs, 35 million Ae.cludin- staff loansB, Usually branches in lar-e
markets and commercial areas come under this cate-ory,
8) C>NS#"ERS &$N?IN@
These are the branches 0hich have e.posure up to Rs, 35 million and these include all the
branches, 0hich are neither corporate nor commercial branches,
#.e/iali0e1 Pro1u/ts 2 Fa/ilities an1 A//ounts3
&1B provides different savin- accounts 0ith attractive returns and Investment products
that -ive the monthly profits as 0ell as the convenient payment instruments to save the
purpose of safety in hi-h valuable transactions, havin- hi-h acceptance around the 0orld,
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Internship Report
a4 #.e/iali0e1 Pro1u/ts4
&1B products are desi-ned to cater to all your financial needs, They include:
1onvenient 39 hours bankin- services throu-h the lar-est !T& net0ork
in Pakistan,
FThe &1B P!( RUP>> TR!V>''>RS 1+>GU>S are the safest 0ay to
carry cash for hi-h value cash transactions,
FThe &1B &!ST>R 1!R# is the future of money 0ith over 73 million
merchants 0elcomin- the card -lobally for you to buy 0ithout payin-
cash on the spot, ?ou have never seen convenience like this before,
F&1B R>&IT >@PR>SS is the fastest 0ay of -ettin- your money across
to Pakistan, throu-h the bank service, 0hich saves your previous time,
54 #.e/iali0e1 A//ounts3
&1B provide its customers to open an account that fits their re=uirements and life style
in best 0ay,
&1B RUP>> &!@I&I%>R !11*U)T provides an opportunity to convert your
forei-n currency account in to Pak,
FIn Pak, Rupee or forei-n currency accounts the bank provide 0ith a selection of
accounts suitin- your needs,
FThe (+US+!'I B!1+!T or #*''!R (+US+!'I !11*U)T, both re=uire
a lo0 minimum income deposits plus you receive profit on daily product basis,
FUnder S!VI)/ 6C; !11*U)T, &1B offers youEre a savin- account 0ith
current account facilities,
FThe 1!PIT!' /R*T+I)V>ST&>)T provides you an opportunity to double
your amount and also receive monthly profits throu-h monthly (+US+!'I,
F&B1 &!'!&!' #>P*SIT also provide the customer 0ith incentive of
different pri2es alon- 0ith savin- of their amount for a particular period at a
predetermined rate of profit,
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Internship Report
&ore over the &1BEs policies relatin- too customer 0ith innovative savin- schemes,
products and services, Its !T& net0ork is lar-est in Pakistan and Pak Rupee Travelers
che=ues are market leaders, &1B also claims to be the first to introduce the photo card
0ith the introduction of &1B &aster 1ard for addin- additional security to its customers,
c) "C& C>R0>R$'E &$N?IN@
These are branches 0hich have an e.posure of over Rs, 755 million, Usually includes
multinational D public sector companies,
&1B corporate bankin- is providin- its customers 0ith professional financial advisor
that -ive personal attention to your bankin- needs, They are specialists in connection
0ith the services like under 0ritin- corporate advisory, pro<ect finance, e=uity
placements and a lot more, The BankEs e.perienced corporate bankin- team assures you
to be assisted 0ith all your financial needs and re=uirements by offerin- different
e.clusive schemes and credit policies 0ith the ob<ectives to:
+elp the process of industriali2ation in the country,
Provide employment opportunities to skilled and unskilled labor,
>ncoura-e local and overseas Pakistanis for investment,
Increase production and boost e.ports,
"C& IN2ES'"EN' &$N?IN@@R>#0
The Investment Bank /roup AIB/B has emer-ed as a leadin- player in PakistanEs
investment bankin- area, The -roup handles advisory, corporate finance, pro<ect finance
and capital market related transactions,
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Internship Report
C$0I'$( "$R?E'S
The 1apital &arkets A1&B teams participate in some of the lar-est capital markets
transactions emanatin- from Pakistan, IB/ has been involved in all ma<or corporate bond
transactions as 'ead &ana-er or 'ead Under0riter,
C>R0>R$'E FIN$NCE
The 1orporate $inance A1$B team is involved in some of the ma<or &er-er and
!c=uisition transactions takin- place in Pakistan, The team identifies potential tar-ets or
ac=uires and arran-es funds for the mer-er or ac=uisitions,
0R>AEC' FIN$NCE
The team at &uslim 1ommercial Bank is trained in conductin- comprehensive risk
analysis of the pro<ects under consideration, devise the financin- in structure accordin- to
the needs and cash flo0s of the pro<ect and arran-es the re=uired funds throu-h
syndication,
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Internship Report
OVERV!E' OF OR"AN!+AT!ON
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Internship Report
,A- *R!EF &!#TOR%
!t the time of independence in 789: the banks services 0ere very badly affected and by
"une 65, 7894, the number of offices of scheduled banks came do0n to only 47 in 3 the
territories comprisin- PakistanH but by #ecember 67, 78:6 there 0ere follo0in- 79
scheduled Pakistani commercial banks 0ith 6636 offices all over the Pakistan and :9
offices in forei-n countries,
7, )ational Bank of Pakistan
3, +abib Bank 'imited,
6, +abib bank A*verseasB 'imited,
9, United Bank 'imited,
;, &uslim 1ommercial Bank 'imited,
C, 1ommerce bank limited,
:, Standard bank 'imited,
4, !ustralasia bank limited,
8, Bank of Baha0alpur 'imited,
75, Premier bank limited
77, Pak bank limited,
73, Sarhad Bank limited
76, 'ahore commercial banks limited,
79, Pun<ab Provincial 1ooperative bank limited,
&1B 0as founded by IS$+!)I and !#!&">> families in 1alcutta on "uly 8, 789:,
&1B is not an overni-ht success story rather -ood track of services are responsible for
the leaps and bounds pro-ress, !fter the partition of the IndoIPak Subcontinent, the bank
moved to #haka from 0here it commenced business in !u-ust 7894,In 78;C,the Bank
transferred its re-istered office to (arachi, 0here the +ead *ffice is presently located,
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Internship Report
Thus, the bank inherits a ;3 year le-acy of trust in its customers and the citi2ens of
Pakistan,
&1B Bank 'imited is one of the leadin- banks of Pakistan and continuously a0arded
JBest #omestic Bank in PakistanK from 3553I355: and also ranked in !! L Ratin-, The
&ana-ement of the Bank maintained its strate-y of concentratin- on -ro0th throu-h
improvement in =uality services, investment in technolo-y D 6 people, utili2in- its
e.tensive branches net0ork, lar-e D stable deposit base and mana-in- its nonI
performin- loans,
&1B Bank 'imited is the only Bank in Pakistan 0ho listed on 'ondon Stock >.chan-e
and issued /lobal #epository Receipts A/#RsB 0orth 7;5 &illion #ollars, &1B Bank is
first ever in the history of the country to be listed on the 'ondon Stock >.chan-e for
tradin- on the Professional Securities &arket 0hich is no0 bein- follo0ed by )BP D
*thers, The BankEs Re-istered *ffice is at &1B Buildin-, $ICM/IC "innah !venue,
Islamabad,
Provin/e 6ise *ran/7es 1etail
0rovince &ranches Su89&ranches
Pun<ab C;C ;
Sindh 396 7
),,$,P 756 I
Balochistan 6C I
!2ad ", (ashmir 7; I
%o!estic 'otal 1*B 6
*verseas : I
@rand 'otal 1*6* 6
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Internship Report
Overseas O.erations
Colo!8o 1
?and3 1
"aradana 1
0ettah 1
Cella.atte 1
&ahrain 1
E0D 1
%u8ai (Rep5 >ffice) 1
#u88ery
@roup Circle Re/ion &ranches Su89&ranches
C&&@ South , + 199 1
C&&@ East - ::9 9
C&&@ Central , 1: :+ ,
C&&@ North 11 : 1
Consu!er &an4in/
@roup
9 ,, 9
Chole sales and Isla!ic
&an4in/ @roup
9 9 :1 9
C&@ Cash "ana/e!ent 9 9 1 9
'otal 1, ,1 1*B 6
>verseas 9 9 + 9
@rand 'otal 1, ,1 1*6* 6
#U*#!D!AR!E#
The bank has t0o subsidiaries:
7, !dam<ee Insurance 1ompany 'td,
3, $irst omen Bank 'td
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Internship Report
In the late 7885 after lon- period of time ne0ly established #emocratic /overnment of
Pakistan have decided to sell nationali2ed assets of country for better utili2ation,
In !pril 7887, &1B became PakistanEs first privati;ed 8an4, The -overnment of
Pakistan transferred the mana-ement of the Bank to )ational /roup, a -roup of leadin-
industrialists of the country by sellin- 3CN shares of the bank, In terms of a-reement
bet0een the /overnment of Pakistan and the )ational /roup, the -roup, makin- their
holdin- ;5N has purchased additional 39N shares, )o0, 3;N is purchased by the
/overnment, 0hich shall be sold in the near future,
The name of bank has been chan-ed from &US'I& 1*&&>R1I!' B!)( 'T# to
"C& &$N? ('%, The name to chan-e 0as felt due to the reasons that bank 0as mainly
kno0n and popular as a &1B B!)(,
"C& 0HI(>S>0H7
&1B Bank kno0s the best to deal 0ith its customers and thus has a customer oriented
philosophy, The &!B philosophy in their 0ords is described belo0,
J$or us, you are not <ust a set of numbersH you are a valued customer 0hom 0e kno0 by
name, This helps us serve you e.actly the 0ay you 0ant us to thatEs the differenceO e
offer effective solutions derived from our personal kno0led-e of all your bankin-
re=uirements 0hich are met 0hen 0e meet youPby name,K
"C&)S 0ERF>R"$NCE >2ER2IEC
Based on continuin- -ro0th and consistently outstandin- performance, &1B has once
a-ain received the Euro!one3 $.ard :**B for the E&est &an4 in 0a4istanF, &1B has
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Internship Report
become the only bank to receive the >uromoney !0ard for >.cellence for the fifth time
in last si. years,
In addition, $sia "one3 has also declared &1B as JThe Best #omestic 1ommercial
Bank in PakistanK for the year 355;,
$C$R%S
&1B Bank has 0on many a0ards, 0hich is a clear proof of its -ood performance5 It has
0on >uromoney a0ards and !sia &oney a0ards,
Euro!one3 $.ards
&est &an4 In 0a4istan $.ard :**+
&est &an4 In 0a4istan $.ard :**B
&est &an4 In 0a4istan $.ard :**,
&est &an4 In 0a4istan $.ard :**
Euro!one3 $.ard :** for the G&est &an4 in 0a4istanG,
&est &an4 In 0a4istan $.ard :**1
&est %o!estic &an4 $.ard :***
$sia "one3 $.ards
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Internship Report
,*- NATURE OF T&E OR"AN!+AT!ON
&1B is one of the leadin- banks of Pakistan 0ith a deposit base of about Rs, 345 billion
and total assets of around Rs,655 billion, Incorporated in 789:, &1B soon earned the
eputation of a solid and conservative financial institution mana-ed by e.patriate
e.ecutives, In 78:9, &1B 0as nationali2ed alon- 0ith all other private sector banks,
The Bank has a customer base of appro.imately 9 million, a nation0ide distribution
net0ork of over 7,5;6 domestic branches, : international branches and over 9;5 !T&s
in the market,
#urin- the last fifteen years, the Bank has concentrated on -ro0th throu-h improvin-
service =uality, investment in technolo-y and people, utili2in- its e.tensive branch
net0ork, developin- a lar-e and stable deposit base,
>&AEC'I2ES >F >R$NID$'I>N

The follo0in- are the ob<ectives of &uslim 1ommercial Bank 'imited,
CRE$'IN@ $N% "$N$@IN@ 2$(#ES
The first ob<ective of &uslim 1ommercial Bank 'imited is to create and man-e the
values, 0hich is one of the back bone of the ob<ectives of any 0ell or-ani2ed and
mana-ed or-ani2ation,
H#"$N 2$(#ES
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Internship Report
The second ob<ective of &uslim 1ommercial Bank is to take care of the +uman capital
0hich is a necessary thin- for the development and prosperity of any 0ell established
or-ani2ation,
&ES' 0($CE '> C>R?
The third ob<ective of &uslim 1ommercial Bank 'imited is to make it a place 0hich is
much feasible and comfortable for employees of the bank, The &1B is al0ays conscious
in developin- such place 0here employees of the bank feel easiness,
'ECHN>(>@7
The forth ob<ective of &uslim 1ommercial Bank 'imited is to brin- ne0 and latest
technolo-y in the operations of the bank, !t &1B, technolo-y has a direct relation 0ith
your needsH it is a means for creatin- value and convenience for the customer, *ver the
last fe0 years &1B has invested heavily into stren-thenin- its technolo-y backbone,
Today it is leadin- the 0ay in bankin- technolo-y and settin- ne0 standards for the
bankin- industryH penetratin- into the local market, listenin- to the needs of the people
and educatin- them of simple financial products and services that create both value and
convenience, &1BEs stren-th lies in providin- a technolo-ical base at the -rass roots
level of the society 0ith a challen-e to educate and assimilate such systems across vast
cultural and economic back-rounds, &1B continuously innovate ne0 products and
services that harness technolo-y for the customerEs benefit,
#N%ERS'$N%IN@ RE($'I>NSHI0S
The fifth and very important ob<ective of &uslim 1ommercial Bank 'imited is to create
such an environment 0hich is suitable for creatin- understandin- and relationship
bet0een the employees, thus -oin- to0ards the 0ay of development and prosperity, *ver
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Internship Report
the years, &1B has fostered stron- bonds 0ith its customers, Understands themH their
needs, They feel comfortable 0ith &1BH itEs their bankH it responds to themH listens to
themH partners 0ith themH -ro0s 0ith them, !t &1B, bankin- is all about bein- there for
people, makin- a home in their heartsIcontinuously buildin- relationships on mutual trust
and confidence, e understand that relationships are about e.pectationsIour products and
services are based on your customers, e.pectations, Be it financin- for personal or
business related needs, funds transfer and trade related facilities or need for different
types of deposit accounts, &1B offers you a variety of products and services customi2ed
to satisfy your individual needs,
#N%ERS'$N%IN@ C>N2ENIENCE
The ne.t ob<ective of &uslim 1ommercial Bank 'imited is to make understandin- a
convenient thin- for the 0hole environment of the bank, for the purpose of boostin- up
its values and prosperity in such a competitive environment, 1onvenience is 0hat the
customer is lookin- forH and this is 0hat 0e at &1B are continuously strivin- to provide,
hether it is the 39 hours cash convenience of our !T& net0ork or the easy availability
of financin- re=uirements or simple openin- of account, &1B has tailored its products
and services to make your life easier, &1B kno0s the particular needs of its diverse
customer base d continuously develop products and services that fulfill these needs,
#N%ERS'$N%IN@ RE(I$&I(I'7
The last but not least ob<ective of &uslim 1ommercial Bank 'imited is to make an
environment 0hich have an understandin- of reliability in the 0hole structure of the
bank, ith a stron- financial base, a promisin- team and the ri-ht resources, &1B has
proved to be a reliable partner indeed, &1B understands the special needs of the
business, tradin- and a-ricultural sectors, Strate-ically located branches in small to0ns
and cities provide 0arm services and advice to the small businessmen and local traders,
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Internship Report
&1B speaks their lan-ua-eH it understands their needs and provides tan-ible results, By
respondin- in a timely manner 0ith a fle.ible approach, &1B provides its clients 0ith
the reliable financial service and support they re=uire to successfully achieve their
business ob<ectives, ith a solid foundation of over ;5 years in Pakistan and havin-
recently completed 75 successful years of privati2ation, &1B is stron-ly positioned to
lead the bankin- sector in the ne0 millennium, ?ou can feel safe in our hands,
V!#!ON #TATE(ENT
J1hallen-in- and 1han-in- the ay you BankK,
(!##!ON #TATE(ENT
J&1B BankEs team of committed professionals is dedicated to maintainin- lon- term
customer relationships throu-h outstandin- service and convenienceK,
OUR VALUE#
Trust
Je are the trustees of public funds and serve 0ith inte-rity D commitment, >thical
behavior is of critical importance to us, e adopt full compliance 0ith internal and
e.ternal policies and procedures, operatin- 0ithin the le-al frame0orkK,
$usto8er Fo/us
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Internship Report
Qe continuously seek to e.ceed our customerEs e.pectations, for-in- and maintainin-
lon- term relationshipsK
!nnovation
Je strive to be the market leaders in innovative products and services offerin-
customi2ed financial solutions 0ith fla0less e.ecutionK
Tea86ork
JThe diversity of our people is our stren-th, e inspire and challen-e each other 0orkin-
to-ether to achieve syner-yK
A/7ieve8ent
J*ur people are our most valuable asset, e are committed to a result oriented culture,
*ur -oals are clear and merit is the only criterion for re0ardK
#o/ial Res.onsi5ility
J!s responsible citi2ens 0e contribute to the social 0elfare of the community 0e live in,K
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Internship Report
,$- *U#!NE## VOLU(E
&usiness volu!e of "C&
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Internship Report
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Internship Report
,D- PRODU$T L!NE
0ERS>N$( &$N?IN@
De.osit A//ounts
?hushali &achat $ccount
(hushali Bachat !ccount, a Rupee savin-s account is one of &1B BankEs most popular
products, #ue to the lo0 initial deposit, the account can be opened by people from all
0alks of life and still avail the facility of daily product profit calculation,
"ahana ?hushali &achat
&1B &onthly (hushali Scheme provides you 0ith a steady income every month, "ust
purchase a &onthly (hushali 1ertificate and you 0ill en<oy a steady income of your total
deposit every month,
0a4 Rupee Savin/s $ccount
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Internship Report
&1BEs Pak Rupee Savin-s !ccount offers you attractive returns on your Pak Rupee
investment, In addition, you have access to a country0ide !T& net0ork convenient cash
accessibility 39 hours a day, The facility also provides you 0ith unlimited daily
transactions 0ith a limit on ma.imum 0ithdra0al amount throu-h the !T& machines,
0a4 Rupee Current $ccount
&1BEs Pak Rupee 1urrent !ccount offers you the convenience of unlimited 0ithdra0als
i,e, access to your funds 0henever you 0ant 0ithout any notice, There is no limit on the
number of transactions you make in a day plus you can avail finance facility up to :;N of
the total deposit, In addition, you have access to a country0ide !T& net0ork convenient
cash accessibility 39 hours a day, The facility also provides you 0ith unlimited daily
transactions 0ith a limit on ma.imum 0ithdra0al amount throu-h the !T& machines,
0a4 Rupee 'er! %eposit
&1B Pak Rupee Term #eposit -ives a hi-her rate of return, It -ives you choice of 7
month, 6 months, C months, 7 year, 3 years, 6 years, 9 years and ; year term deposits,
Savin/ 6B
The &1B Savin- 6C; calculates profits on a daily product basis and -ives you the facility
of unlimited 0ithdra0als,
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Internship Report
F>REI@N C#RRENC7 S$2IN@S $CC>#N'
Forei/n Currenc3 Savin/s $ccount
&1BEs $orei-n 1urrency Savin-s !ccount offers you attractive returns on your $orei-n
1urrency investment, ?ou can invest in any of the four currencies i,e, US #ollar, U(
Pound Sterlin-, "apanese ?en or >uro, ?our forei-n currency account is e.empted from
%akat and 0ithholdin- ta.
Forei/n Currenc3 Current $ccount
&1BEs $orei-n 1urrency 1urrent !ccount offers you the convenience of unlimited
0ithdra0als i,e, access to your funds 0henever you 0ant 0ithout any notice, There is no
limit on the number of transactions you make in a day,
"C& Forei/n Currenc3 'er! %eposit
&1B $orei-n 1urrency Term #eposit -ives a hi-her rate of return, It -ives the choice of
7 month, 6 months, C months, 7 year, 3 years, 6 years, 9 years and ; year term deposits,
%ollar ?hushali $ccount
The #ollar (hushali !ccount, a #ollar based account 0as introduced in 7886 at selected
&1B Bank branches, Today, you can open a #ollar (hushali !ccount at over 355
ranches in Pakistan,
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Internship Report
(>$N 0R>%#C'S
"C& &usiness Sar!a3a
J&1B Business SarmayaK is the best Runnin- $inance facility a-ainst your residential
property 0hich empo0ers you to mana-e your business dealin-s better, So act today and
-et &1B Business Sarmaya and thus improve your business, avail lucrative opportunities
and e.pand your business, 0ith absolute satisfaction of cash flo0s,
"C& Car,u
'ife is like a chess board, ?ou plan your career options, ?ou analy2e your business
moves, But 0hen you really 0ant to improve your life, you make a po0er move, &1B
1!R9U !uto $inance is the po0er move that assists you in more 0ays than you ever
ima-ined, It is affordable, 0ith lo0est mark up, fle.ible conditions, easy processin- and
above all, no hidden costs,
"C& 03ara @har
Some destinations re=uire a lon- 0ait, 'ike 0aitin- for a home of your o0n, But 0ith
&1B Pyara /har it is no0 easy to step into your home and start livin- a real life, &1B
Pyara /har is an ideal +ome $inance from your o0n bank that lets you Purchase,
Renovate or 1onstruct your home the 0ay you have al0ays 0anted, +avin- your o0n
home 0as never so easy,
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Internship Report
Eas3 0ersonal (oan
&1B >asy Personal 'oan provides you 0ith the financial advanta-e to do thin-s youRve
al0ays 0anted to but never had the sufficient funds for, Take that muchneeded
holiday, Buy a car, Refurnish your house, Purchase a ne0 TV, $inance a better education
for your children,
"C& "aster Card
Since the be-innin- of time, people have tried to find more convenient 0ays to pay, from
-old to paper money and che=ues, Today, money is movin- a0ay from distinct hard
currencies and to0ards universal payment products that transcend national borders, time
2ones, and, 0ith the Internet, even physical space, Plastic or SvirtualS money, credit,
debit, and electronic cash products, inevitably 0ill replace cash and che=ues as the
money of the future,
"C& Rupee 'ravelerHs Che=ues
&1B Rupee TravelerRs 1he=ues 0ere first introduced in 7886 as safe cash for travelin-
and travel related purposes, The product has been e.tremely popular and is preferred over
cash by customers 0hile travelin- and in all 0alks of life, &1B Rupee TravelerRs
1he=ues The safest 0ay to 1arry 1ashK
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Internship Report
C>R0>R$'E &$N?IN@
Cash "ana/e!ent Services
&1BEs net0ork of over 855 branches in Pakistan enables it to collect and disburse
payments efficiently 0ith its cash mana-ement services, This also enables it to offer you
choice of paper based or electronic fund transfer solutions includin- collection amounts,
cross branch on line transactions etc,
Cor4in/ Capital (oans
Based on the customerEs specific needs, the 1orporate Bank offers a number of different
0orkin- capital financin- facilities includin- Runnin- $inance, 1ash $inance, >.port
Refinance, Preshipment and Post shipment etc, Tailor made solutions are
developed keepin- in vie0 the uni=ue re=uirements of your business,
'er! (oans
&1B offers Short to &edium Term $inance to meet capital e.penditure and short term
0orkin- capital re=uirements of our customers, The loans are structured on the basis of
underlyin- pro<ect characteristics and cash flo0s of the business,
'rade Finance Services
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Internship Report
Under 1orporate Bankin- &1B offers trade finance services that include an entire ran-e
of import and e.port activities includin- issuin- 'etters of 1redit A'M1sB, purchasin-
e.port documents, providin- -uarantees and other support services,
2IR'#$( &$N?IN@
&1B Virtual Internet Bankin- offers you the convenience to mana-e and control your
bankin- and finances T 0hen you 0ant to, 0here you 0ant to, &1BEs Virtual Internet
Bankin- facility is simple and secure, !nd its free of cost, ith &1B Virtual Internet
Bankin- you can access any of the bankin- services, 39 hours a day, : days a 0eek and
throu-hout the year,
&1B Virtual Internet Bankin- offers a 0ide ran-e of online services 0hich makes your
bankin- accessible anytime and from any0here,
#etailed !ccount Summary of all listed accounts,
&ini statements of each of the listed accounts sho0in- recent transaction history
for that accountAsB,
Statement by Period of each of the listed accounts, based on the period specified,
Immediate or Scheduled Transfer of $unds bet0een your o0n accounts, as 0ell as
to third party accounts setup as beneficiaries, maintainin- accounts 0ith &1B,
Schedulin- of Q*neTimeE as 0ell as QRecurrin-E $unds Transfers,
Payment of utility bills for re-istered Utility 1ompanies,
Immediate or Scheduled Bills Payment, Schedulin- of Q*ne TimeE as 0ell as
QRecurrin-E bill payments, *ption for Q$ullE or QPartialE payment based on the
payment conditions specified by a particular Utility 1ompany,
Bulk Salary Transfer for 1orporate 1ustomers, to facilitate them in payin- salary
to the corporate employees, 0ho maintain accounts 0ith &1B,
Bulk $unds Transfer for 1orporate 1ustomers,
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Internship Report
1he=ue Book Re=uest for any of your listed accounts,
PaymentMTransfer !lerts for remindin-, in advance, prior to the processin- of
specified payments and transfers,
Personal !lerts for remindin- of pre specified events and occasions,
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Internship Report
IS($"IC &$N?IN@
De.osit #/7e8es
$or customers 0ho are lookin- for a deposit opportunity 0here they can purse their funds
and reap halal returns on it, 0e offer the follo0in- products:
!l &akhra< Savin- !ccount
!l &akhra< Ianat !ccount
!l &akhra< Term #eposit
Fun1 *ase1 Fa/ilities
IIarah 0roducts
&1BEs Islamic I<arah, analo-ous to the >n-lish term Rleasin-E, is based on the QI<arah 0a
I=tinaE concept 0hich means the sale of the asset to the lessee after the I<arah has
matured, Under this scheme, &1B 0ill be the o0ner of the asset, and the customer
AlesseeB 0ill be -iven the asset to use for a certain period of time in return for monthly
rental payments, &1B 0ill -ive a separate unilateral undertakin- that it 0ill offer to sell
the asset to the customer AlesseeB at the maturity of the I<arah a-reement at a price that
may be e=ual to the security deposit amount, hence the term Qa I=tinaE,
'3pes of IIarah
1ar I<arah
>=uipment I<arah
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Internship Report
>'HERS 0R>%#C'S
FleJi (ife
a5 >ptional 8enefits availa8le throu/h unit deductions
i, $amily Income Benefit
ii, 1ritical Illness Benefit
iii, Permanent Total #isability

85 >ptional 8enefits availa8le throu/h additional pre!iu!
i, !ccidental #eath
ii, !ccidental #eath or #ismemberment
iii, aiver of Premium
iv, +ospitali2ation 1ash Reimbursement

(ife0artner
0rotection &enefit
a, !ccidental #eath
b, !ccidental #eath or #ismemberment
c, aiver of Premium
d, +ospitali2ation 1ash Reimbursement
$dditional &enefits
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Internship Report
$le.ibility of 1hoice
Inflation Protection
!dditional TopIUps A!dIhoc $eatureB
!dditional benefits are sub<ect to terms and conditions,

$ccess to 7our Savin/s
a, Partial ithdra0al
b, 1omplete Surrender
Free9(oo4 0eriod
The plan offers you a freeIlook period of 79 days, in 0hich you can cancel your policy by
contactin- )"I 'ife, and have your premium refunded, +o0ever, as per la0, )"I 'ife
reserves the ri-ht to deduct the e.penses incurred on medical e.aminationAsB of the 'ife
!ssured in connection 0ith the issuance of this Policy,
E%#C$RE
&ENEFI'S:
>ducation 1ontinuationK Benefit
>ducation SupportK Benefit
!ccidental #eath and #isability Benefit
$und !cceleration Premium
Inflation Protection
!ccess to ?our Savin-s
$dditional &enefits:
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Internship Report
a, Partial ithdra0al
b, 1omplete Surrender
0lan "aturit3 &enefit
a, Income Benefit
b, aiver of Premium
c, !dditional Term !ssurance

Free9(oo4 0eriod
The plan offers you a freeIlook period of 79 days, in 0hich you can cancel your policy by
contactin- >$U life, and have your premium refunded, +o0ever, as per la0, certain
char-es 0ill be deducted related to any medical e.amination that you may have
under-one durin- the application sta-e,
%RE$" CE%%IN@
&ENEFI'S:
&arria-e 1ontinuationK Benefit
>n-a-ement SupportK Benefit
!ccidental #eath and #isability Benefit
$und !cceleration Premium A!dIhoc $eatureB
Inflation Protection
!ccess to ?our Savin-s
0lan "aturit3 &enefit
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Internship Report
a, Partial ithdra0al
b, 1omplete Surrender

$dditional &enefits:
a, Income Benefit
b, aiver of Premium
c, !dditional Term !ssurance
Free9(oo4 0eriod
The plan offers you a freeIlook period of 79 days in 0hich you can cancel your policy by
contactin- >$U 'ife and have your premium refunded, +o0ever, as per la0, certain
char-es 0ill be deducted related to any medical e.amination that you may have
under-one durin- the application sta-e,
C$0I'$(S#RE
&ENEFI'S:
Partial ithdra0al
/uaranteed &aturity
Protection Benefit
1omplete Surrender
'oan
Premium >scalation
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Internship Report
$dditional 8enefits
a, 'evel Term Insurance Rider A'TRB
b, Income Benefit Rider AIBRB
c, !ccident 1are Benefit A!1BB
d, $amily Protection Rider A$PRB

Free9(oo4 0eriod
1apitalSure offers a free look period of 79 days durin- 0hich you can revie0 your policy
terms and conditions and cancel the policy, ?our premium 0ill be refunded on receipt of
0ritten re=uest 0ithin 79 days from the date of receipt of policy document, !'I1*
reserves the ri-ht to deduct the e.penses incurred on medical e.amination,
RE'IREE$S7
&ENEFI'S:
$'>@IBI'IT? *$ 1+*I1>
1onservative Strate-y
Balanced Strate-y
!--ressive Strate-y

@uaranteed (o3alt3 &onus
Policy year 'oyalty Bonus Unit !llocation as N of Basic Premium
; 7;N
75 3;N
7; and every ; years thereafter 3;N
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Internship Report
$ccount 2alue $cceleration 0re!iu!s
/uaranteed #eath Benefit
Partial ithdra0al
1omplete Surrender
&aturity Benefit
Premium >scalation
$dditional &enefits:
a, 'evel Term Insurance Rider A'TRB
b, $amily Protection Rider A$PRB
c, Income Benefit Rider AIBRB
d, !ccident 1are Benefit A!1BB

Free9(oo4 0eriod
Income&a. offers free look period of 79 days durin- 0hich you can revie0 your policy
terms and conditions and cancel the policy, ?our premium 0ill be refunded on receipt of
0ritten re=uest 0ithin 79 days from the date of receipt of policy document, !lico
reserves the ri-ht to deduct the e.penses incurred on medical e.amination,
S'E0#0
&ENEFI'S:
Protection Benefit
!ccidental #eath Benefit
aiver of Premium A!ccidental disability onlyB
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Internship Report
Policy 'oan
1omplete Surrender

0olic3 0a3outs:
If you survive and continue to pay premiums, you 0ill receive a fi.ed amount to meet
midItermMshortIterm needs,

?ear N of sum assured
: 3;N
79 3;N
37 ;5N

@uaranteed &onus:
In addition to the policy payouts, you are also provided -uaranteed bonuses, If the
policyholder dies after the bonus has been announced, the bonus 0ill be added to the
death benefit,
?ear N of sum assured
C 73,;N
76 :;N
Bonus payable only at maturity

Free9(oo4 0eriod:
The plan offers a freeIlook period of 79 days, in 0hich you can cancel your policy by
contactin- !dam<ee 'ife, and have your premium refunded, +o0ever, as per la0,
!dam<ee 'ife reserves the ri-ht to deduct the e.penses incurred on medical
e.aminationAsB of the 'ife !ssured in connection 0ith the issuance of this Policy,
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Internship Report
SER2ICES
"C& "o8ile &an4in/
!t the forefront of technolo-ical e.cellence, &1B proudly introduces &1B &*BI'>
B!)(I)/, The convenience of accessin- your account balance information and mini
statements 0henever you 0ant or 0herever you may need them, 0ith comfort and peace
of mind,
"C& S"S &$N?IN@
)o0, &1B S&S Bankin- -ives you =uick and easy access to your accountAsB round the
clock, at our convenience,
!t the forefront of technolo-ical e.cellence, &1B proudly introduces &1B S&S
Bankin- service,
This service is available to all &1B !ccount +olders anytime, any0here,
$or more information call our +elp 'ine 777I555IC33 A&1BB,

&an4in/ at 3our Fin/ertips
&1B S&S Bankin- allo0s you to avail the follo0in- services:
!ccount Balance In=uiry,
!ccount &ini Statement Alast ; transactionsB,
Vie0 1redit 1ardAsB minimum payment,
Vie0 1redit 1ardAsB outstandin- balance,
Vie0 1redit 1ardAsB bill,
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Internship Report
$ Free Service
&1B S&S Bankin- is a free service for all &1B account holders, +o0ever, standard
S&S char-es levied by your service provider are applicable,
"C& Call Center
(eepin- up 0ith bankin- services can be tedious but not 0ith &1B Bank, 0here phone
service is at your fin-ertips, "ust dial our 1all 1entre from the comfort of your home or
office or 0herever you happen to be, It offers basic bankin- services for your
convenience, eliminatin- the need for you to make un0anted trips to your branch,
"C& S!art Card
&1B no0 brin-s you &1B S!art Card a secure and convenient instrument of payment
0ith unmatched functionalities, It provides 39hour direct access to your bank account,
The convenience and fle.ibility of &1B S!art Card 0ill help you live a smarter life, It
not only helps you mana-e your e.penses, but also eliminates undue interest on your day
to day credit card transactions, ?our balance is al0ays 0ithin your reach and you spend
accordin-ly,
"C& %e8it Card
)o0 &1B brin-s a secure, convenient and =uick payment facility that enables you to do
purchasin- by usin- your e.istin- &1B !T& M &1B Smart 1ard as a #>BIT 1!R#,
$'" Net.or4
6:
Internship Report
!T& stands for !utomatic Teller &achine, This machine is used to transact in oneEs
account 0ithout intervention of humans, These machines are basically used for takin-
cash, confirmin- balances and re=uestin- statementsM1he=ue books,
The nationEs lar-est net0ork of over 955 !T&s and -ro0in-, /et 39 hour convenience
of cash 0ithdra0alH ministatement, bill payment and funds transfer services,
>N(INE &$N?IN@:
Providin- customers 0ith 39 U : real time online transaction facilities,
Full %a3 &an4in/:
>n<oy the convenience of e.tended bankin- hours from 8 to ;, even on Saturdays, for
satisfyin- your bankin- needs at all &1B $ull #ay Bankin- branches across the country
0here you are no0 served 0ith a 0ide ran-e of services throu-hout the day,
"NE'
&1B has provided the nationRs lar-est operatin- s0itch 0ith the hi-hest transaction
volume in the form of &)>T, &)et is basically &1BEs )et0ork for >lectronic
TransactionsH it is an electronic hub for !T& sharin- plus other touch points, &)>T
enables all the member banks Amembers of &uslim 1ommercial bankB to share their
electronic net0orks, This means customers of all member banks can use each otherRs
!T&s, !T& machines of &)>T member banks accept cards issued by:
V &1B Bank
V 1itibank
V Standard 1hartered
V +SB1
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Internship Report
V Bolan Bank
V Bank of Pun<ab
V Prime 1ommercial Bank
V Saudi Pak Bank 'imited
V +abib Bank !/ %urich
V &etropolitan Bank
V Bank of (hyber
V !merican >.press
V (!SB
V &y Bank 'td
V )#'1I$I1 Bank 'td
&)>T customers can use over C55,555 !T&s 0orld0ide that carry the 1irrus lo-o and
shop at over ; million outlets AP*SB that carry the &aestro lo-o
"C& (oc4ers
The best protection for your valuables, 'ockers of different capacities are available
nation0ide,
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Internship Report
,E- $O(PET!TOR#
'ist of &1B competitors is -iven belo0
CEN'R$( &$N?
State Bank of Pakistan
N$'I>N$(IDE% SCHE%#(E% &$N?S
$irst omen Bank 'imited
)ational Bank of Pakistan
S0ECI$(IDE% &$N?S
Industrial #evelopment Bank
%arai Tara=iati Bank 'imitedW7X
Pun<ab Provincial 1ooperative Bank
S&> Bank
0RI2$'E SCHE%#(E% &$N?S
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Internship Report
+abib Bank, (arachi
!llied Bank of Pakistan, (arachi
!rif +abib 'imited, (arachi I
!skari Bank, Ra0alpindi
!tlas Bank, (arachi A1orporate ebsiteB
Bank !' +abib, (arachi
Bank !lfalah, (arachi
Barclays Bank,(arachi
$aysal Bank, (arachi W7X
+abib &etropolitan Bank, (arachi
"S Bank
(!SB Bank, (arachi
&1B Bank 'imited Aformerly &uslim 1ommercial BankB, Islamabad
&ybank 'imited, (arachi
)IB Bank, (arachi
S!&B! Bank 'imited, (arachi
Silkbank 'imited
Soneri Bank
United Bank 'imited, (arachi
Bank *f Pun<ab, 'ahore
1itibank,Islamabad
Standard chartered Bank 'td,(arachi
Royal Bank of Scotland 'td,(arachi
+SB1 'td,'ahore
khushali bank of Pakistan
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Internship Report
%E2E(>0"EN' FIN$NCI$( INS'I'#'I>NS
Pak 1hina Investment 1ompany 'imited, Islamabad
Pak (u0ait Investment 1ompany 'imited, (arachi
Pak 'ibya +oldin- 1ompany 'imited, (arachi
Pak Iran "oint Investment 1ompany 'imited, (arachi
PakI*man Investment 1ompany 'imited, (arachi
Saudi Pak Industrial and !-ricultural Investment 1ompany APvtB 'imited,
Islamabad
+ouse Buildin- $inance 1orporation, (arachi
Investment 1orporation of Pakistan, (arachi
Pak Brunaei Investment 1ompany 'imited, Islamabad
IN2ES'"EN' &$N?S
!lITo0feek Investment Bank 'imited
Invest 1apital Investment Bank 'imited
!tlas Investment Bank 'imited
1rescent Investment Bank 'imited
>scorts Investment Bank 'imited
$irst 1redit and Investment Bank 'imited
I/I Investment Bank 'imited
$idelity Investment Bank 'imited
Islamic Investment Bank 'imited
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Internship Report
!&% Securities
*ri. Investment Bank APakistanB 'imited
Prudential Investment Bank 'imited
Trust Investment Bank 'imited
%ISC>#N' $N% @#$R$N'EE H>#SES
$irst 1redit D #iscount 1orp 'imited
Prudential #iscount D /uarantee +ouse 'imited
)ational #iscountin- Services 'imited
Speed0ay $ordmetall APakistanB 'imited
H>#SIN@ FIN$NCE C>"0$NIES
!sian +ousin- $inance 'imited
1itibank +ousin- $inance 1ompany 'imited
+ouse Buildin- $inance 1orporation
International +ousin- $inance 'imited
2EN'#RE C$0I'$( C>"0$NIES
Pakistan Venture 1apital 'imited
Pakistan >mer-in- Ventures 'imited
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Internship Report
!&% Ventures
"ICR> FIN$NCE &$N?S
)RSP &icro $inance Bank 'imited
The $irst &icro $inance Bank 'imited
(hushali Bank 'imited
(arakuram Bank
)et0ork &icro $inance Bank
Pak *man &icro $inance Bank
Ro2-ar &icro $inance Bank, (arachi
Tameer &icrofinance Bank 'imited
(ashf $oundation 'imited
IS($"IC &$N?S
#a0ood Islamic Bank 'imited
#ubai Islamic Bank Pakistan limited
&ee2an Bank Premier Islamic Bank In Pakistan
!lBaraka Islamic Bank
BankIslami Pakistan 'imited
>mirates /lobal Islamic Bank
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Internship Report
OR"AN!+AT!ON #TRU$TURE
9;
SEVP
ESEVP
VP
!VP
!ssistant
*/I7
*/I6
*/I3
SVP
Clerical Staff
Cashier
Technical Staff
Non clerical staff
Messenger
Dispatch Rider
Internship Report
,A- &!ERAR$&% OF (ANA"E(ENT
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Internship Report
(ANA"E(ENT $O((!TTEE
&oard of %irectors
&ian &ohammad &ansha 1hairman
S,&,&uneer Vice 1hairman
Tari= Rafi &ember
Shah2ad Saleem &ember
Sarmad !min &ember
#r, &uhammad ?a=ub &ember
&ian Ra2a &ansha &ember
#atoR &ohammad +ussein &ember
!ftab !hmad (han &ember
!tif Ba<0a President M 1>*
$udit Co!!ittee
Tari= Rafi 1hairman
#r, &uhammad ?a=ub &ember
&ian Ra2a &ansha &ember
#atoR &ohammad +ussein &ember
!ftab !hmad (han &ember

Hu!an Resources Co!!ittee
&ian &ohammad &ansha 1hairman
#r, &uhammad ?a=ub &ember
&ian Ra2a &ansha &ember
Shah2ad Saleemn &ember
President &ember
Ris4 "ana/e!ent 1 0ortfolio Revie. Co!!ittee
Shah2ad Saleem 1hairman
Tari= Rafi &ember
Sarmad !min &ember
&ian Ra2a &ansha &ember
!ftab !hmad (han &ember

Co!!ittee on 0h3sical 0lannin/< I' S3ste! 1 Contin/enc3 $rran/e!ents
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Internship Report
Sarmad !min 1hairman
S, &, &uneer &ember
&ian Ra2a &ansha &ember
President &ember
&usiness Strate/3 1 %evelop!ent Co!!ittee
&ian &ohammad &ansha 1hairman
S, &, &uneer &ember
Shah2ad Saleem &ember
&ian Ra2a &ansha &ember
#r, &uhammad ?a=ub &ember
#atoR &ohammad +ussein &ember
President &ember

Chief Financial >fficer
!li &unir
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Internship Report
,*- NO4 OF E(PLO%EE
E!plo3ees: 1:<:B6 (appro5)
Shareholders: ,:9*
Shareholdin/: 6:-:+6-,
,$- (A!N OFF!$E#
Re/istrar >ffice
&1B Buildin- $ICM/IC
"innah !venue, Islamabad
0rincipal >ffice
&1B 7; &ain /ulber-, 'ahore
Re/istrarHs and Share Re/istration >ffice
&1B 7; &ain /ulber-, 'ahore
&Ms, T+( !ssociates APvt,B 'imited
State 'ife Buildin- )o,6,
#r, %iauddin !hmed Road,
(arachi
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Internship Report
,D- !NTRODU$T!ON OF ALL DEPART(ENT#
%E0$R'"EN'I>N IN "C&
In &1B there is departmentation by function, There are t0enty divisions 0orkin- under
+ead *ffice, each of 0hich is havin- his o0n field of 0ork, these divisions are:
15 $@RIC#('#RE %I2ISI>N5
This division 0ork for the development of a-riculture in the country, It advances loans
for a-ricultural purpose and recovers all loans already -iven for the said purpose, This
division also assists orld Bank and other donors in their a-riculture development
pro<ect,
:5 $#%I' %I2ISI>N5
Previously IT 0as called inspection and !udit #ivision, It conducts audit in BankEs
branches and it dele-ated enou-h authority from the Board of #irectors so *TB that it
can 0ork 0ithout any fear, It appoints audit teams and all the irre-ularities are reported to
this division,
5 &#SINESS %E2E(>0"EN' 1 "$R?E'IN@ %I2ISI>N5
This is the most important division 0orkin- under +,*, the main function of this division
is business development, This division on the basis of market survey introduces ne0
schemes and all the marketin- activities for the promotion of the ne0 products are carried
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Internship Report
out by this division, 1han-es in the e.istin- connection 0ith bank D customer scheme is
also the responsibility of this division,
,5 CEN'R$( $CC>#N'S %I2ISI>N5
The main responsibility of this division is to keep accounts of branches and record of all
inter branch transitions and of branches 0ith +*, 1alculation of profit on the accounts of
branches maintained 0ith +* is also the responsibility of this division,
B5 C>R0>R$'E $FF$IR %I2ISI>N5
It deals 0ith the affairs of public and private limited companies, It includes financin- of
lar-e and speciali2ed corporations, pro<ects, In short it mana-es the corporate financin-,
It also directly controls those branches 0hich are desi-nated as corporate branches,
65 CRE%I' "$N$@E"EN' %I2ISI>N5
&ain function of this division is to form credit rules and re-ulation in accordance 0ith
the prudential rules and re-ulation framed by SBP, It deals 0ith all credit proposals
submitted by advances departments of different branches and defines their limits of loans,
&arketin- activities about the loan is also carried out by this division, This division keeps
contacts 0ith all valuable clients and considers their vie0 about he loansMadvances
procedure and tries to make the procedures as simple as possible, !ction necessary for
the recovery of loan is also taken by this division,
+5 FIN$NCE $N% 'RE$S#R7 %I2ISI>N5
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Internship Report
This division mana-es all the assets of &1B &ana-ement of income ta. and central
e.cise duty is the function of this division, The most important function it performs is the
announcement of profit rate *n different schemes from time to time,
-5 F>REI@N 'R$%E $N% EKCH$N@E >0ER$'I>N %I2ISI>N5
The main function of this division is to arran-e forei-n currency reserves, for day to day
re=uirements of bank, It frames all rules and re-ulations re-ardin- forei-n e.chan-e and
'M1 openin- in the li-ht of prudential rules and re-ulations of SBP, and instructions of
>.port Promotion Bureau A>PBB and &inistry of 1ommerce and Industry,
95 @ENER$( SER2ICE SEC'I>N5
This division deals 0ith construction and maintenance of branches, purchase and
maintenance of vehicles and lasin- of bankEs property, The supply of stationery and
e=uipmentEs is also the responsibility of this division,
1*5 H#"$N RES>#RCES %E2E(>0"EN' %I2ISI>N5
It is the most important division of +*, #ealin- 0ith the most important asset of the
bank i,e +uman Resource, It deals 0ith all the personnel functions of recruitment,
transfer, promotion, resi-nation, and separation, It settles all salary matters and matters
relatin- to increments, bonuses and frin-e benefits, It maintains records of employees and
conducts performance appraisal and disciplinary actions,
115 INF>R"$'I>N "$N$@E"EN' %I2ISI>N5
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Internship Report
It is fully computeri2ed division, 0hich provides all sorts of information to top
mana-ement, This division monitors the information system of all branches and is
playin- s a very important role in computeri2ation of &1B,
1:5 IN%#S'RI$( CRE%I' %I2ISI>N5
Previously it 0as part of 1redit &ana-ement division, but no0 it 0orks under the said
division, It deals only 0ith the advances to industrial units,
15 IN'ERN$'I>N$( %I2ISI>N5
It looks after all the matters relatin- to forei-n banks includin- the branches of &1B
abroad, It looks after all deals 0hich &uslim 1ommercial Bank carries out 0ith banks
and financial institution of forei-n countries, &ana-ement of Umra and +a<< operations is
also the responsibility of this division, The mana-ement and conditions of seminars and
trainin- pro-rams outside the country and to send its officials for the trainin- abroad is
the responsibility of this division,
1,5 IN2ES'"EN' &$N?IN@ @R>#05
It is the unit 0hich under takes investment 0ith respect to the product of the banks, It
deals 0ith capital market at national and international level and also mana-erEs
syndicates in case of issuin- of shares etc,
1B5 IS($"ID$'I>N %I2ISI>N5
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Internship Report
This division 0as established in %ia re-ime, after the introduction of Islamic Bankin- in
Pakistan, This division administers %akat deductions, I=ra surchar-e and Gar2e +asna
mode of financin-, This division also -ives su--estions on the adoption of interest free
bankin- in Pakistan,
165 (E@$( $FF$IR %I2ISI>N5
This division deals 0ith the le-al affairs if the back, it handles all the cases filed a-ainst
someone and to defend all the cases filed a-ainst &1B, It alsi five su--estions in framin-
of ne0 rules and re-ulations to other divisions,
1+5 >R@$NID$'I>N $N% "E'H>% %I2ISI>N
This division firms methods and procedures to be adopted by different branches, This
division is also responsible for construction and revie0 of or-ani2ational structure of
&1B as a 0hole and the braches, The division collects data and su--estions or &1B as a
0hole and the branches, This division collects data and su--estions for the improvement
of his or-ani2ational structure and procedures,
1-5 R#0EES 'R$2E(ER CHEL#E $N% CRE%I' C$R% %I2ISI>N
This division is responsible fir maintainin- all records to Rupees travelersE che=ue and
master card,
195 S0ECI$( $SSE'S "$N$E"EN' %I2ISI>N
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Internship Report
This division is created to -ive su--estions and fins ne0 0ays and means to recover the
stuck up loans of bank,
:*5 'R$ININ@ %I2ISI>N5
The division is responsible for arran-in- trainin- fir all level of employees, It administers
the staff colle-es of &1B, This division keeps a0are itself from the introduction of ne0
bankin- techni=ues, and provides a full opportunity to its employees to learn 0hat ever
ne0,
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Internship Report
PLAN OF !NTERN#&!P PRO"RA(
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Internship Report
,A- !NTRODU$T!ON OF T&E *RAN$&
I did my internship in &1B Bank limited (!B!?!)I>I S!R!R, branch #era
/ha2i (han,
In the &1B Bank limited, I really en<oyed 0orkin- 0ith the staff of (hayabanIeISar0ar,
Branch, #era /ha2i (han and havin- a 0ish to be employee of &1B, It 0as almost
impossible to 0ork in all the departments 0ithin that limited time, But on my re=uest, the
staff of the branch provided me the opportunity to 0ork in the different departments for
the sake of practical kno0led-e, I feel hi-hly indebted to 0ork in the (hayabanIeISar0ar
Bach on the re=uest of the mana-er of that branch &a=sood !hmed, because I learnt a lot
in that branch,
Some important information about my branch 0hich I observed is as follo0s,
$ddress: (?ha8a3an9e9Sar.ar< "ultan Road< %era @ha;i ?han)
&ranch Code 1,9
It is deposit 8ranch< did not /ive the loan5 (&ut deal Short ter! finance)
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Internship Report
@ENER$( INF>R"$'I>N $&>#' "7 &R$NCH
%E0>SI'S
The total deposits of this about to 7;, 55, 55,555 Rs5
N#"&ER >F $CC>#N'S
!ccounts in this branch of &1B are as follo0s
C#RREN' $CC>#N':
Total numbers of current accounts are 1:** Nos5
0(S $CC>#N'
Total numbers of profit and loss accounts :1** Nos5
RE"I''$NCE
Total remittance of this branch is <**<**<*** Rs5 0er !onth5
N>5 >F 2>#CHERS
The vouchers 0hich are transacted in this branch are 335 to 365 daily
'3pes
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Internship Report
Transfer
1learin-
1ash
Rate of interest
&a.imum
T7at 9ives to t7is year4
R$'E >F IN'ERES'
The rate of interest provided by such bank is ; N on savin-
FIN$NCIN@
&ainly, the short term financin- schemes are bein- deal here,
C$0I'$(
1apital of branch is treated in its head office
RE2EN#ES
The total revenues of this branch are near to B "illions (last 3ear)
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Internship Report
"$N$@E"EN' >F 'HE &R$NCH
*ran/7 (ana9er (a:soo1 A78e1
Aorkin- as Sales M #eposited, collect deposit, contact parties for
depositin- and Supervision of the 0orkin- of StaffB
O.eration (ana9er (iss Aas8a
A*ver all 0orkin- and Supervisor, and Supervision of operationsB
$usto8 #ervi/e (rs4 Aara
A*penin- !ccount, and others issued relatin- to openin- the
account matterB
Re8ittan/es Offi/ers (is !rra8
AT,T,, #P, 1heck deposit, mean 1heck departmentB
$as7ier (r4 (u7a88a1 Ra7il
A1ash payment, 1ash Receive and others relatin- to cash mattersB
$olle/tive De.art8ent (iss Aas8a2(rs4 Aara2(iss !r8a
These employee randomly 0ork in this #epartment,
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Internship Report
A*n daily basis , they check the che=ue from the other banks and
after checkin- they submit them in the head office every dayB

Offi/e *oy (u7a88a1 alee8
Aorkin- as a peon, do the services to the customers,B
#e/urity 9uar1s
&uhammad Imtia2 A&ornin- #utyB
&an2ar +ayat A&ornin- #utyB
Talib +ussain A>venin- #utyB
AThey provide the security to the branchB
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Internship Report
,*- DURAT!ON OF (% !NTERN#&!P
Start %ate: *B >cto8er :**9
End %ate: *B %ece!8er :**9
,$- DEPART(ENT# !N '&!$& ! "OT TRA!N!N"
Na!e of %epart!ent %uration
Remittance department 5;I75I3558 to 35I75I3558
/eneral bankin- departmentMclearin- department 35I75I3558 to 75I77I3558
!ccounts and #eposit #epartment 77I77I3558 to 3;I77I3558
1ash department 3CI77I3558 to 5;I73I3558
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TRA!N!N" PRO"RA(
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Internship Report
,A- A$T!V!T!E# PERFOR(ED *% T&E DEPART(ENT#
OF *RAN$&
%E0$R'"EN'S >F &R$NCH
The departments functionin- at, &1B (+!?!B!)I>IS!R!R 7986 branch #era
/ha2i (han are discussed belo0,
1ash department
!ccounts and #eposit #epartment
Remittance department
/eneral bankin- departmentMclearin- department
C$SH %E0$R'"EN'
The follo0in- books are maintained in the 1ash #epartment:
Receivin- 1ash Book
Payin- 1ash Book
Token Book
Scroll Book
1ash Balance Book
hen cash is received in counter, it is entered in the Scroll Book and Receivin- 1ashier
Book, !t the close of the day, these are balanced 0ith each other, hen the che=ue or
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Internship Report
any ne-otiable instrument is presented at counter for payment, it is entered in the token
book and token is issued to the customer, The token clerk and the 1ashier make entries in
the payin- book and payment 1ashier Book are balanced, The consolidated fi-ure of
receipt and payment of cash is entered in the cash balance book and dra0n closin-
balance of cash,
O.enin9 *alan/e ; Re/ei.ts < Pay8ents = /losin9 *alan/e4
This is very important department because cash is the most li=uid asset and mostly frauds
are made in this department, therefore, e.tra care is taken in this department and nobody
is allo0ed to enter or leave the area freely, &ostly, cash area is -rilled and its door is
under supervision of the head of that department, !ll the books maintained in this
department are checked by an officer,
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Internship Report
$CC>#N'S %E0$R'"EN'
The function of !ccounts department is to post daily activities of each and every section,
>very department is sendin- the detailed report of daily pro-ress to the !ccount
#epartment for postin- the same in the cash book, also allo0ed the clean cash re-ister,
The transaction then 0ill be shifted to their appropriate heads, !ccounts department deals
in t0o types of re-isters,
In the income led-er the transactions relatin- to the income of the bank are to be posted,
like commission from parties, maintenance etc, all the development e.penses of the bank
includin- salaries e.penses of the staff, rent e.penses etc are to be posted in the e.pense
led-er, !ccounts department also maintains the deposits, and also prepares the 0eekly
and daily statements of the affairs of the branch, It is <ust like a balance sheet,
'HE %E0>SI'S SEC'I>N
The deposits are one of the most fundamental sections of any bank, This section had been
set up 0ith a vie0 to accept deposits from -eneral public and 0hich 0as also a central
idea to create a bank, It 0ill not 0ron- to say that the bankin- starts from this section,
F#NC'I>NS >F 'HE SEC'I>N
The deposits section carries out many si-nificant functions, besides providin- other
re=uired facilities and information to its customers, Some of key functions are -iven
under:
>0ENIN@ NEC $CC>#N'
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Internship Report
*penin- of ne0 account is like a contract bet0een the banker and customer, It is the
preliminary function of the deposits section to open various types of account, by allottin-
those numbers,
'3pes of $ccounts
(eepin- in vie0 the purpose and duration for 0hich deposits are to be kept 0ith the
deposits section in the bank, the deposits can be classified into t0o cate-ories, #emand
deposits and Time or $i.ed #eposits, The demand deposits are ones 0hich are payable
by the bank 0henever demanded y the depositors, This cate-ory includes current and
savin-s deposits accounts,
hile on the other hand the deposits 0hich are accepted by the bank under the condition
that they 0ill not be payable on demand but 0ill be payable on a fi.ed or predetermined
future time or date are called Time or $i.ed #eposits,
$ollo0in- are the types of accounts the deposits department opens,
15 Current $ccounts
These are runnin- accounts and are opened by the individualsMbusinessmen, public
institutions and -roups, that make deposits and 0ithdra0als fre=uently, The deposits and
0ithdra0als can be made throu-h che=ues, demands drafts, pay orders, etc, dra0n on the
branch, !s these accounts are payable 0henever the depositors demand and the Bank by
acceptin- these deposits incurs the obli-ation of payin- all types of orders to the e.tent of
the credit balance in the depositorEs accounts, These deposits represent current liabilities
of the bank, So, the bank has to keep sufficient funds in its hand to meet the re=uirements
of the depositors of these deposits,
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Internship Report
$urthermore the businessmen, 0ho re=uire money fre=uently, open current accounts, The
bank can not apply the proceeds of such e.penses, fees, commission, and markup etc
arisin- out of any dealin- or services 0ith the branch, The account holder is e.pected to
maintain a minimum balance of Rs,;55MI in his account or 0hatever the minimum
amount is prescribed for the purpose, These accounts are completely e.empted from
0ithholdin- ta. and 2akat deduction,
:5 0(S Savin/ $ccounts
These are also one kind of demand deposits and are kept to develop the savin- sense in
the citi2ens of the country, These accounts are opened mainly by those customers 0hose
bankin- transactions are not fre=uent and numerous, 'o0er and middle income -roups,
small traders, professionals, farmers and other salaried classes usually make such
deposits, so as to save small amounts for the small or bi- needs, like purchase of
television, refri-erator, car or house, $unds can be deposited fre=uently throu-h cash,
che=ues, demand drafts, pay orders, tele-raphic transfers, and other such instruments, But
the 0ithdra0als are restricted to t0ice a 0eek,
$rom the bankEs point of vie0 a considerably percenta-e of such deposits can safely be
invested and the Bank need not keep lar-er reserves to satisfy the daily demand upon
such deposits, !t the same time the bank pays the profit at competitive rates on such
deposits in lon- period investments, The bank can, on the re=uest of its depositors, pay
their utility and other bills out of their accounts, The profit is not paid on these deposits,
!s a result the bank earns ma.imum profit from these kinds of accounts, Providin-
bankin- investment 0ith the proceeds of these deposits and providin-, under an
a-reement, overdraft facilities to the depositors are the main proposes of the bank by
keepin- such deposits,
S$(IEN' FE$'#RE
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Internship Report
To maintain re=uirement for openin- account is rs,;55MI
There is no limit for ma.imum deposit,
)o limit of deposits and 0ithdra0als is defined,
The deposits can be lod-ed in both local as 0ell as forei-n currencies,
The bank collects che=ues, demand drafts, etc and pays all the bills, che=ues, pay
orders, etc, on the behalf of its depositors,
The current accounts can be made by:
Individuals Asin-le or <ointlyB Proprietorship, Proprietorship, and companies in
their names, Such other -roups and or-ani2ation,
!ll che=ues and other instruments should be crossed, before they are deposited
for credit into account,
The bank 0ould not re=uire any prior permission from the account holder for
debitin- hisMher account for char-in- deposits, 0hich varies from time to time
usually after every si. months, The ob<ectives of the bank to keep deposits are to
earn ma.imum profit by investin- the proceeds of the deposits, to help small
savers, to fulfill their bankin- needs and to provide assistance in upliftin- the
economy,
(0(S) 'ER"S %E0>SI'S
The deposit 0hich is acceptable by the bank under the condition that it 0ill not be
payable on demand, but 0ill be payable on a fi.ed or predetermined future time or date,
is called fi.ed deposit, But after the illumination of bankin- system in 784;, its name has
been chan-ed from fi.ed to P'S Terms #eposit,
These deposits represent such surplus funds of the depositors, 0hich are not re=uired by
them for sufficiently lon- periods, The bank needs not to keep -reater reserves in respect
of such deposits, The bank can make lon-Iterm investments from the credit balances of
such deposits, The deposits are accepted for the ran-e from 6 months to above, *f course,
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Internship Report
the lon-er the period, the hi-her is the rate of profit offered, People -enerally deposit
lar-er amounts of money in these accounts, The bank can advance loan to businessmen
out of these deposits because they are fi.ed for a particular period, But for the premature
0ithdra0al of amount a prior notice to the bank is necessary, $or the amount placed on
the term deposit, the bank issues a deposit certificate AreceiptB, 0hich states the amount
received, the name of the depositor and the period for 0hich the deposit is placed, Bein-
a deposit receipt it cannot be ne-otiated or transferred, The bank accepts these deposits
0ith the purposes, to make minimum profit by usin- the proceeds of such deposits, to
appeal customers by offerin- them a hi-h rate of return, to meet their entire bankin-
needs, and to help economy to -ro0,
S$(IEN' FE$'#RE
The minimum deposits is accepted by the bank 0ith the sum of Rs,7555MI
The ma.imum deposit has -ot no limit,
The deposits are accepted for the period form three months ma.imum to above,
The P'S term depositors 0ould be eli-ible for sharin- profitMloses 0ith the bank
at true rate determined by the bank,
here profits and losses 0ould be distributed on half yearly basis,
*n the maturity, the depositors shall have an option either to dra0 the deposit and
the amount of his profit share if any or rene0 the deposit,
Incase of premature 0ithdra0al a prior notice must be -iven by the depositor to
the bank on 0hich bank is eli-ible to ma.imi2e the profit ratio of depositor or to
deduct some char-es of its services,
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Internship Report
RE"I''$NCE %E0$R'"EN'
!ccordin- to concerned officer of this department, the bank promoted the facility of
remittin- the funds 0ithin certain limits, Remittance department here consists of t0o
ma<or sections,
Inland re!ittance
Forei/n re!ittance
IN($N% RE"I''$NCE
The term inland remittance means transfer of funds from one branch too another 0ithin
the country throu-h follo0in- bankin- instruments,
i, #emand draft,
ii, Tele-raph transfer,
iii, &ail transfer,
iv, Pay order,
i5 %e!and draft (%%)
It is 0ritten dra0n by one branch of a bank upon another branch of the same bank or
upon branch of any other bank 0orkin- 0ith in the country under special arran-ement to
pay certain sum of money to or to the order of specified person, &1B deals 0ith t0o
types of dd,
>pen %%1
*pen ## is one 0hich is payable directly at the counter and there is no need of creditin-
to the account,
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Internship Report
Cross %%:
1ross ## is one 0hose payment is done throu-h account, the amount of the ## is
credited to the favorin- accounts and then he can transact in ordinary 0ay throu-h
che=ue,
ii5 'ele/raph 'ransfer ('')
Transfer of funds form one branch to another of the same bank or upon other banks under
special arran-ements for the payment to beneficiary, throu-h tele-ram, tele., and fa. is
allied tele-raph transfer,
iii5 "ail 'ransfer
Transfer of funds from one branch of the same bank inside or outside the country throu-h
mailMcourier service is called, &ail transfer are same as for tele-raph transfer, but if a
personEs account is not e.isted in the said branch, in this case the sendin- branch 0ill
shift the amount to the concerned branch and advice 0ill be sent to the other bank in
0hich his account e.ists, In suspense account the party 0ill have to prove identity,
iv5 0a3 >rder
! pay order is a 0ritten authori2ation for payment made in a receipt from issued and
payable by the bank to the person named and addressed there, on this -ivin- a proper
dischar-e there on, Pay order can be made for the branch of same bank 0ith in the same
city, There is option to chan-e bank AnameB but that bankEs branch should be in the same
city, The BankEs commission is fi.ed as ;N for any amount,
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Internship Report
F>REI@N RE"I''$NCE
The bank provides the facilities of forei-n remittance to the domestic residential and
forei-ners to send money from one country to another, The bank also provides forei-n
e.chan-e in the shape of travelerEs che=ues to intendin- visitors, TravelerEs che=ue is an
order dra0n by the bank in favor of travelers upon specific bank to pay him specific
amount on demand after proper identification abroad, The travelers first pay the amount
of money to the issuin- bank, 0hich is responsible to pay the amount to the forei-n bank
upon 0hich it is dra0n,
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Internship Report
@ENER$( &$N?IN@ %E0$R'"EN'
Clearin/ %epart!ent
>very banker acts both as payin- as 0ell as a collectin- banker, It is ho0ever an
important function of crossed che=ues, ! lar-e part of this 0ork is carried out throu-h the
bankers clearin- house, ! clearin- house is a place 0here representative of all banks of
the city -et to-ether and settle the receipts and payment of che=ues dra0n on each other,
!s the collectin- banker runs certain risks in receipt of their o0nership the la0 has
provided certain protections t the banks,
The )e-otiable Instrument !ct, 7447, lays do0n hat dra0er or holder of a che=ue or
draft may cross the instrument -enerally or specially, It further lies do0n that a crossed
che=ue can only be paid to a banker, 0ho collects it for a customer in -ood faith and
0ithout ne-li-ence,
The functions of clearin- department is under
Receivin- the instruments deposited by customers
Postin- the amount of instruments in credit of customerEs account
If che=ue returns from the concerned bank, the customer account is debited,
1rossin- stamp is put on the instrument and slip -iven to customer on receipt of
the instrument, 1learin- stamp and Jpayee account creditedK are put on the
instrument and the voucher,
!s 0e kno0 that, one of the basic economic functions of commercial banks is to receive
deposits and to honor che=ues dra0n upon them, So, che=ue is a most commonly used
instrument for makin- payments by account holder, !lon- 0ith the che=ues, there are
some other ne-otiable instruments like P*, ##, T1, PS, 1#R etc, Adiscussed in the ne.t
partB that are used for makin- payments and are dra0n upon a bank, The =uestion arises
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Internship Report
that ho0 these che=ues D other ne-otiable instruments dra0n on one bank are deposited
in other banks and money is transferred from one bank to another, 1learin- +ouse has
provided this facility, 1learin- house facilitates different banks, on one city, to -et their
che=ues dra0n upon other banks to be cleared, 1he=ues lod-ed in clearin- constitute t0o
types of clearin-:
*ut0ard 1learin-
In0ard 1learin-
(od/!ent of Che=ues in >ut.ard Clearin/
hen che=ues, T1Es and other ne-otiable instruments dra0n upon their banks like &1B,
!B)!&R* of the same city Aas 'ahoreB is presented in &1BB!)( 'I&IT># 'td,
To deposit them in the respective payeeEs accounts, these instruments are lod-ed in
out0ard clearin-,
Clearin/ Sta!p:
!fter the che=ues have been crossed specially, clearin- stamp is put on the che=ues and
other instruments, 0ith the follo0in- dayEs date, as these che=ues should have to be
presented in their concerned dra0ee banks on the subse=uent day,
Endorse!ent Sta!p:
The 0ord endorsement is derived from 'atin 0ord QindorsumE 0hich means Qon the
backE, *rdinarily, it means anythin- 0ritten or printed upon the back of an instrument,
So, at the end, the che=ues are endorsed in full Aendorsed speciallyB by puttin- the stamp
0ith 0ords describin- JPayeeEs account 1redit;ed in B!' 1ircular road, 'ahoreK !fter
puttin- these three stamps on che=ues D other ne-otiable, Instruments, they are sent to
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Internship Report
)I$T A)ational Institutional $acilitation !uthorityB 0ith !dd 'ist, )I$T after
se-re-atin- the che=ues of different banks delivers them to their concerned banks, 0hich
constitute the in0ard clearin- for those dra0ee banks,
$ccountin/ 0rocedure:
!fter lod-ment of all che=ues in out0ard clearin-, PayeeEs accounts are credited by the
amount of their vouchers, #ra0ee banks 0ill debit the dra0erEs accounts in their in0ard
clearin- Adiscussed laterB, !s main branch *f B!' deals 0ith other banks throu-h
interbank accounts and 0e deal 0ith our main branch, So, 0e AB!' 1ircular roadB
debit our main Br, !ccount, maintained 0ith us, by the total amount of out0ard clearin-
and an IB#! Ainter branch debit adviseB 0ith a debit voucher is sent to main branch,
'ocal 1learin- &ain branch #ebit PayeeEs !ccount 1redit
Return In >ut.ard Clearin/:
Some of the che=ues lod-ed in oM= clearin- are dishonored by the concerned branches
due to some deficiencies and returned back throu-h )I$T, This process is carried out
under main branchEs -overnance, >ither, these che=ues are a-ain lod-ed in out0ard
clearin- or returned to customers by cancelin- bankEs all stamps, based on the reasons,
)o0, the accountin- entries opposite to first are passed i,e, PayeeEs accounts are debited
D main branchEs account is credited,
In.ard Clearin/
1he=ue and other ne-otiable instruments AP*, ##, PS, 1#R >tc,B dra0n on &1BB!)(
'I&IT># 1ircular Road, sent by other banks, constitute the in0ard clearin- of B!',
!fter havin- all the stamps and dates of che=ues confirmed, the concerned dra0erEs
accounts are debited Ain B!' 1ircular RoadB and main branchEs account is credited by
the total amount, #>BIT #ra0erEs !ccounts 1R>#IT 'ocal 1learin- &ain branch,
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Internship Report
,*- DE#$R!PT!ON OF TA## T&AT ! $O(PLETED
(E$RNIN@ $S $ S'#%EN'
The duties that I performed and the thin- I learned in 3 months are -iven as follo0s:
#'I(I'7 &I((S C>((EC'I>N
&1B Bank 'imited collects utility bills on behalf of !P#!, Sui /as 1ompanies, and
Pakistan Telecommunication 1orporation 'imited by puttin- the stamp on the utility bills
JPaidK, #ate of payment, Si-nature of the officer receivin- the utility bills, !fter
receivin- utility bills a list is made on the form, 0hich is called Bills scroll form, *ne
copy of the scroll is 0ith the bank for evidence 0hereas the ori-inal copy 0ith the receipt
of bills is sent to the billin- department of the respective corporation, The bank char-e
commission on the bills,
>0ENIN@ NEC $CC>#N' &$SICS
#urin- the span of my internship in &1B I learned and observed a lot of about the
openin- of an account, Basically I think that the openin- of an account is the
establishment of a contractual relationship bet0een the banker and the customer, By
openin- an account at a bank, a person becomes a QcustomerE of a bank,
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Internship Report
%E"$N% %R$F' $N% 0$7 >R%ER S(I0
#emand #raft A##B is a 0ritten order dra0n by the branch of the same bank to another
branch of the same bank to pay an amount, ## is used in the same city or in other city
branches, Bank char-es commission on it,
Pay order can be issued to the customers but in practice, 1ommonly pay orders used for
banks o0n payment purpose only,
#urin- my Internship I filled these documents for customers,
#ocuments that re=uired for #emand #raft or pay order are:
)ame and !ddress of the customer
I# card number of the customer
!mount
Place 0here demand draft dra0n
%E0>SI' S(I0S
1ustomers used deposit slips to deposit the money into their account, I also 0orked for
many days in this section, I fill the deposit slips for customers and then they deposit the
money into their account,
ISS#IN@ CHEL#E &>>?
hen 1ustomers open ne0 accounts then they need a 1he=ue Book to 0ithdra0 their
money, *r an e.itin- customer needs a 1he=ue Book 0hen his first 1he=ue Book is end,
I issued 1he=ue Book to the 1ustomers durin- &y Internship,
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Internship Report
'R$ININ@ IN %IFFEREN' %E0$R'"EN'S
#urin- my Internship I 0orked in different departments, The Bank &ana-er attached me
in different departments 0ith in char-e of the #epartment,
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Internship Report
#TRU$TURE OF T&E F!NAN$E
DEPART(ENT
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Internship Report
,A- DEPART(ENTAL &!ERAR$&%
*ran/7 (ana9er (a:soo1 A78e1
Aorkin- as Sales M #eposited, collect deposit, contact parties for
depositin- and Supervision of the 0orkin- of StaffB
O.eration (ana9er (iss Aas8a
A*ver all 0orkin- and Supervisor, and Supervision of operationsB
$usto8 #ervi/e (rs4 Aara
A*penin- !ccount, and others issued relatin- to openin- the
account matterB
Re8ittan/es Offi/ers (is !rra8
AT,T,, #P, 1heck deposit, mean 1heck departmentB
$as7ier (r4 (u7a88a1 Ra7il
A1ash payment, 1ash Receive and others relatin- to cash mattersB
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Internship Report
,*- NO4 OF E(PLO%EE 'OR!N" !N F!NAN$E
DEPART(ENT
These person 0orks randomly in $inance #epartment,
"$LS>>% $H"E%
"ISS $$S"$
"RS5 $$R$
"IS IRR$"
"R5 "#H$""$% R$HI(
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Internship Report
,$- F!NAN$E AND A$$OUNT!N" OPERAT!ON
The function of !ccounts department is to post daily activities of each and every section,
>very department is sendin- the detailed report of daily pro-ress to the !ccount
department for postin- the same in the cash book, also allo0ed the clean cash re-ister,
The transaction then 0ill be shifted to their appropriate heads, !ccounts department deals
in t0o types of re-isters,
In the income led-er the transactions relatin- to the income of the bank are to be posted,
like commission from parties, maintenance etc, all the development e.penses of the bank
includin- salaries e.penses of the staff, rent e.penses etc are to be posted in the e.pense
led-er, !ccounts department also maintains the deposits, and also prepares the 0eekly
and daily statements of the affairs of the branch, It is <ust like a balance sheet,
$ccountin/ 0rocedure:
!fter lod-ment of all che=ues in out0ard clearin-, PayeeEs accounts are credited by the
amount of their vouchers, #ra0ee banks 0ill debit the dra0erEs accounts in their in0ard
clearin- Adiscussed laterB, !s main branch *f B!' deals 0ith other banks throu-h
interbank accounts and 0e deal 0ith our main branch, So, 0e AB!' 1ircular roadB
debit our main Br, !ccount, maintained 0ith us, by the total amount of out0ard clearin-
and an IB#! Ainter branch debit adviseB 0ith a debit voucher is sent to main branch,
'ocal 1learin- &ain branch #ebit PayeeEs !ccount 1redit
Return In >ut.ard Clearin/:
Some of the che=ues lod-ed in oM= clearin- are dishonored by the concerned branches
due to some deficiencies and returned back throu-h )I$T, This process is carried out
under main branchEs -overnance, >ither, these che=ues are a-ain lod-ed in out0ard
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Internship Report
clearin- or returned to customers by cancelin- bankEs all stamps, based on the reasons,
)o0, the accountin- entries opposite to first are passed i,e, PayeeEs accounts are debited
D main branchEs account is credited,
In.ard Clearin/
1he=ue and other ne-otiable instruments AP*, ##, PS, 1#R >tc,B dra0n on &1BB!)(
'I&IT># 1ircular Road, sent by other banks, constitute the in0ard clearin- of B!',
!fter havin- all the stamps and dates of che=ues confirmed, the concerned dra0erEs
accounts are debited Ain B!' 1ircular RoadB and main branchEs account is credited by
the total amount, #>BIT #ra0erEs !ccounts 1R>#IT 'ocal 1learin- &ain branch,
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Internship Report
FUN$T!ON OF F!NAN$E DEPART(ENT
4;
Internship Report
,A- F!NAN$E #%#TE( OF T&E OR"AN!+AT!ON
'he finance depart!ent (FIN) is responsible for policies, plannin-, mobili2ation and
administration of the BankEs financial resources, The department mana-es the BankEs
financial relation 0ith the ob<ectives of providin- loans to borro0in- member countries
on a costIeffective basis, 0hile maintainin- the bankEs !!!M!! ratin-s and safe-uardin-
its resources,
"$IN RES0>NSI&I(I'IES
!chievin- costIeffective Treasury operations,
Raisin- funds in the international capital markets to support the bankEs lendin-
operations,
&ana-in- the bankEs liability portfolio,
Providin- proactive financial policy, timely strate-ic financial plannin- and risk
mana-ement,
>nsurin- that all financial obli-ations are met and collections made,
Producin- prompt and accurate financial reportin- and producin- audited
financial statements for the BankEs !nnual Report,
*verseein- internal controls in the processin- of financial transactions,
&ana-in- the &1B 1apital, includin- resource replenishments, ne0 member
countries subscriptions and monitorin- of member countries, Votin- ri-hts,
Performin- 'oan &ana-ement functions to administer monitor and control the
BankEs loan and technical cooperation portfolios, includin- mana-ement of the
*peration $rame0ork for lendin- in 'ocal 1urrency,
!udited financial statements of the &1B are published each year in the BankEs !nnual
Report,
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Internship Report
F#NC'I>NS >F %E0$R'"EN'
&aintenance of books of accounts and preparation of financial statements of the
Bank in accordance 0ith the I!S, as adopted by the Bank,
1oordination and facilitations for Business plannin- and bud-etin- function in the
bank and periodic reportin- to the mana-ement and to the Board,
&aintenance of forei-n currency accountsM investments and e.ecution of
International payments and receipts,
&aintenance of accounts relatin- to International *r-ani2ations and #onor
!-encies 'ike I&$, IBR#, !#B, !sian 1learin- Union A!1UB et,
1urrency issuance and itEs over all mana-ement,
4:
Internship Report
,*- F!NAN$E AND A$$OUNT!N" #%#TE( OF T&E
OR"AN!+AT!ON
The $inance #epartment is responsible to perform and man-e the functions detailed on
preIpa-e, It controls the 0orkin- of the *fficers under the provisions of issue and
Bankin- #epartment &anuals, Issue #epartment deals 0ith mana-ement of currency
operations, 0hich includes desi-nin-, printin- of currency notes and its circulation,
Bankin- #epartment relates to the operation of offices of the Bank, maintenance of
$ederal and Provincial /overnment !ccounts, bookin- of financial transactions in the
books of accounts of 1entral #irectorate and issue of 0eekly Statement of !ffairs and
re=uired under the provisions of SBP !ct, 78;C, preparation of Profit and loss !ccount
and Balance Sheet on yearly basis, formulation of bud-et estimates of revenue and capital
e.penditure, &ana-ement of /eneral Provident $und and Provident $und balances of all
employed of the bank, *perational control of 0orkin- of offices by framin- policies and
procedures under the provisions of Bankin-M Issue #epartment &anuals, SaleM purchase
of forei-n currencies, maintenance of forei-n reserves of the country, To achieve the
above ob<ectives, the #epartment has been divided into seven divisions as detailed
belo0:I
FIN$NCI$( $CC>#N'S %I2ISI>N (F$%)
$inancial !ccounts #ivision performs the follo0in- functions:I
Preparation of !nnual $inancial Statements !ccountin- Policies for the bank,
Preparation of eekly Statement of !ffairs for issuance in the /overnment
/a2ette as provided in the State bank of Pakistan !ct, 78;C,
Guarterly profit updates to the 1entral Board of #irectors,
&aintenance of /' to provide information for informed decisionImakin-,
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Internship Report
&onitorin- of contraction and e.pansion of 1urrency operations,
1onsolidation of #epartmental Bud-ets,
Preparation of daily balance position and communication thereof to the $ederal
$inance #ivision and Provincial $inance #epartments,
F>REK< SEC#RI'IES 1 IN2ES'"EN' %I2ISI>NS (FSI%)
&aintenance and recordin- of 1ash Reserve Re=uirement, S1R Re=uirements,
&1R, forei-n debt payments, $>I3 #eposits etc,
$1? payments of /overnment of Pakistan A#efense, Privati2ation 1ommission,
T1P etcB and SBP,
ShortM medium term investment and S0ap deposits and maintenance of $orei-n
1urrency !ccounts and revaluation of forei-n currency !ssets D 'iabilities,
Special US #ollar /overnment Bonds, Payment of Profit and principal payment
on redemption
Purchase, repurchase, ac=uisition of S#R, and revaluation of I&$ loansM facilities,
Payments to e.ecutin- a-enciesM parties under various 'oansM /rants of
International #onor a-encies Vi2 IBR#MI#!M !#B etc,
Transactions of SaleM Purchase of 1urrencies D Settlement of !1U !ccount
under !1U !rran-ement,
Transactions of the $orei-n $unded Pro<ects includin- T!BS et,
&onthly !bstract, #aily Reserves and 0eekly revie0 reportin-,
S7S'E" $N% 0R>CE%#RE %I2ISI>NS (S0%)
Systems D Procedures #ivisions ASP#B acts as a liaison bet0een functional user D IS#
to ensure effective systems development, implementation, and usa-e, &a<or
responsibilities areH
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Internship Report
Representation of $inance #epartment, SBP, in various automation pro<ects under
developmentM implementation ART/S D ate 0are +ouseB
Recommend continuous business process refinement in coordination 0ith
business units of fiancY #epartment SBP and SBP BS1,
Participate in automated solutions developmentM confi-uration for SBP is
financial areas,
0$7"EN' C>N'R>((ER %I2ISI>N (0C%)
This division responsible for :I
&akin- of payments to e.ternal suppliers and employees of the bank after
independent verification of transaction documents on the basis of billsM invoicesM
claims approved by the processin- units,
1heckin- and verifyin- the selected financial transactionsM cases referred by the
#irector $inance to ensure accuracy and compliance to respective rules and
re-ulations,
$SSE' "$N$@E"EN' %I2ISI>N ($%")
!ssets &ana-ement division is responsible for
!ssets capitali2ation, assets transfers and overall responsibility to mana-e and
maintain, assets physical inventory, keepin- track of physical location of assets,
&aintainin- the financial information of the assets, cost evaluation and
retirements, #isposal
To ensue the smooth and unhampered runnin- of the $i.ed !ssets &ana-ement
functions,
To record all the e.penses re-ardin- repairM maintenance and rent ta.es for SBP
buildin-s and e=uipments,
C#RRENC7 "$N$@E"EN' %I2ISI>N (C"%)
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Internship Report
1urrency &ana-ement division is responsible for :
Policy makin- and mana-ement of currency related matters,
Issuance of Statements of !ffairs of Issue #epartment on eekly, &onthly and
Guarterly Basis,
Preparation of Balance Sheet of Issue #epartment at very financial yearIend,
S#00>R' SER2ICES %I2ISI>N (SS%)
Support Services #ivision performs the function as follo0:I
To deal 0ith various administrative matters arisin- in the $inance #epartment,
To provide a healthy and sound environment to officers of $inance #epartment,
To respond to various =ueries raised from various internal and e.ternal sources,
#issemination of any revisin- in la0s, policy and re-ulation matters to relevant
=uarters,
R>(E >F CF> IN 'HE &$N?
The 1hief !ccountants used to perform several tasks 0hich 0ere preparin- accounts,,
preparin- bud-ets, operational reportin- and interpretin-, evaluatin- operatin- results,
preparin- income ta. returns, establishin- internal control procedures to safeI-uard the
companies assets,
'R$NSI'I>N FR>" CHIEF $CC>#N'$N' '> CHIEF FIN$NCI$(
>FFICER
#ue to increased -overnance re=uirement there arises a need to empo0er the 1hief
accountant and to make him responsible by re=uirin- him to si-n the accounts, There
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Internship Report
comes the code of corporate -overnance, 0hich makes the 1hief accountant po0erful and
more responsible, ith the ne0 role, 1hief !ccountant becomes 1hief $inancial *fficer
A1$*B
$00>IN'"EN' $N% $00R>2$( REL#IRE"EN'
The appointment, removal and remuneration terms and conditions of employment of the
1hief financial officer of a listed company shell be determined by the 1hief >.ecutive
*fficer 0ith the approval of the Board of #irectors,
L#$(IFIC$'I>N REL#IRE"EN'
The =ualification re=uirement is defined under the code of corporate -overnance that is
the person appointed as the 1hief $inancial *fficer must be &ember of reco-ni2ed body
of professional accountants or a -raduate from a reco-ni2ed university or e=uivalent,
han- at least ; years e.perience in handin- financial and corporate affairs of a listed
company,
IN'ERN$( $N% EK'ERN$( RE0>R'IN@
1hief $inancial *fficer no0 has e.tensive responsibilities for internal and e.ternal
reportin-, !ll the information re=uired for decisionImakin- by the Board of #irectors and
1hief >.ecutive is processed and furnished by the 1hief $inancial *fficer, !part from
this, e.ternal reportin- re=uirement is fulfilled by 1hief financial *fficer, the accounts
and financial statements are si-ned by the 1hief $inancial *fficer before they are sent to
concerned authorities,
1// re=uires that the listed companies submit their =uarterly accounts to the
shareholders 0ithin one month of the close of the first and their =uarter of year of
account,
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Internship Report
The 11/ does not prescribe the time for submittin- half yearly accounts to the
shareholders, +ere 0e can refer to section 39; of companies ordinance 7849 for this
purpose, 0hich re=uires half yearly account to be submitted 0ithin t0o months of the
close of first half, The 11/ re=uired a limited revie0 of half yearly accounts by e.ternal
auditor,
!nnual audited accounts are no0 re=uired to be submitted 0ithin four months of the
close of financial year,
The Securities and >.chan-e 1ommission of Pakistan is e.ercisin- strict vi-ilance to
ensure compliance of 9
th
and ;
th
schedule of the 1ompanies *rdinance, 7849 and timely
submission of accounts by companies, It has recently imposed penalties on #irectors of
nine listed companies 0ho failed to prepare and circulate the =uarterly accounts,
$urthermore, fines have been imposed on 1hief >.ecutives,
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Internship Report
,$- #OUR$E OF FUND#
The Bank industry 0itnessed a volatile year in 3554 in terms of profitability, 0ith every
=uarter depictin- a different picture, The total profitability improved from the first
=uarter to the second =uarter but after the amendment in SBPEs re-ulation re-ardin- )P'
and $SV, banks became more prudent in lendin- and total profitability declined,
)on interest income -re0 si-nificantly by 96 N durin- the period under revie0, The net
interest income earned by the bankin- sector in $?54, also posted a -ro0th of 7:,9 N
and reached at Rs, 345 billion as compared to Rs, 356 billion in $?5:, The ma<or reason
behind this -ro0th 0as the hi-h level of spreads throu-hout the year, hich remained at
:,38 N on avera-e, despite the SBP,s further ti-htenin- of the monetary policy in "uly 5:,
SBP raised the discount rate by another 5,; N in "anuary 3554, raisin- its benchmark
policy rate to 75,; N, The lendin- rates increased 0hile deposit rates 0ere maintained by
the banks,
The increasin- lendin- rates not only deteriorated the debit servicin- capacity of
borro0ers Aboth corporate and consumersB but also subdued the credit demand by the
private sector resultin- in slo0er advances -ro0th, also the countryEs lar-e scale
manufacturin- activity slo0ed do0n, #ue to this the banks are shiftin- from advances to
investments as the key source of fundsM income for the banks,
/ro0th in investment by banks durin- the first nine month of 3554 0as about 8 times of
the increase in the advances in this period, It recorded an increase of P( Rs, 9:C , nearly
45 N of assets increase durin- "anuary, to September 3554, !s a result, the assets mi. of
the banks sho0ed a sli-ht shift from the previous trend,
Banks are no0 introducin- ne0 products for -eneral public in the market to attract fresh
deposits and increase in the 0ei-hted avera-e deposit rates of the bankin- system, A9,79
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Internship Report
N at the end of *ctober, 3554 up by 7C basis points from "une, 3554,B &oreover, the
asset =uality of the banks has been improvin- throu-h strict policies and effective credit
mana-ement,
$inancial performance A$?E56I$?E 54B &1B bank 'imited A&1BB posted profit after ta.
of Rs, 7;,3C b 0ith earnin-s per share of Rs, 39,65 in $?E 54 as compared to profit after
ta. of Rs, 73,7b 0ith earnin-s per share of Rs, 78,66 in $?E5C depictin- a si-nificant
-ro0th of 3C,5 N durin- the year,
+o0ever, considerin- the si2e and operations of the bank, this is not a si-nificant -ro0th,
!n upsur-e of 83 N in the interest earned on the investments in available for sale
securities and a 7; N increase on the interest earned on the customersE loan 0ere the
ma<or drivers behind the said -ro0th,
)onIinterest income also supported the bottom line -ro0in- by 35,9 N to Rs, C,b in $?E
54 from Rs, 9,8b in $?E5: on the back of capital -ain received on the sale of securities,
&a<or contribution also came from a 79 N sur-e in fee commission and brokera-e
income,
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Internship Report
,D- ALLO$AT!ON OF FUND#
The recent #iscount Rate hike to 76 N and 755bp increase each in 1RR and S'R to 8 N
and 78 N respectively 0ould translate into an increase in market interest rates and firmly
restrain credit e.pansion, *n the flip side, it is likely to have a positive impact on deposit
mobili2ation as the banks stru--le for li=uidity, 0hich has already started to become
scarce,
#espite the concretionary monetary policy stance of SBP, the bankin- spread has
increased by 35bps to :,69 N in &ay 3554 compared to :,79 N #ecember, 355:,
+o0ever, the imposition of ; N minimum deposit rates on interest bearin- checkin-
accounts from "ulyE54 on0ards 0ould s=uee2e )I& and result potentially hi-her credit
costs Adue to asset =uality deteriorationB, thereby potentially rimmin- net interest income
and reducin- &1BEs future profitability,
+i-her than avera-e R*> posted by &1B seems sustainable over ne.t fe0 years,
*verall, the risk profile and asset =uality of &1B has vastly improved over the years,
+o0ever, the possibility of risin- )P'sMadvances ratio in $?E54 could be rules out, To
cater to this, the bank has pursued strin-ent policies and made ade=uate provisionin-,
thus, the future profitability of the bank 0ill not be impacted so -reatly,
!nother positive si-n for the bank in &alaysian &ay bankEs plans to ac=uire another ;N
stake in &1B Bank by !u-ust 3554, The ;N option is part of the initial deal for
ac=uisition of 35 N stake in &1B Bank, &ay bank has already ac=uired 7; N stake in
&1B from )ishat -roup in &ay 3554 and 0as re=uired to ac=uire the remainin- 0ithin a
period of 73 months,
!t an a-reed price of Rs, 985Mshare, an upside of 43 N from &1BEs current market
value, the incremental ; N stake in &1B, &aybank 0ould -enerate forei-n inflo0 of US
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Internship Report
Z374mn, &oreover, partnership 0ith &aybank is e.pected to add more value to &1B
-oin- for0ard, The deal could have al lon- run positive impact 0ith technolo-y transfer
and infrastructure investment bossin- depositor density and improvin- loan penetration in
trade financin-, Islamic Bankin- and S&> Business,
ith SBP raisin- the upper limit of retail e.posure to P(R :; mn Anot be more than 3 N
of -ross retail portfolio of the bankB in case of consumer loans and small business loans,
&1B has increased its penetration this hi-h mar-in se-ment, #espite the challen-es of
declinin- demand D risin- )P's due to hi-her interest rate vulnerability and late entry
alon- 0ith established brand e=uity of e.istin- players like UB', 1onsumer financin-
continues to be a profitable niche for &1B,
8:
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$R!T!$AL ANAL%#!#
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CRI'IC$( $N$(7SIS
I have critically analy2ed accordin- to the theoretical kno0led-e and 0ould like to
comments in belo0,
a)5 ?N>C(E%@E >F RIS? "$N$@E"EN' IS "ISSIN@5
The main purpose of financial and bankin- or-ani2ation is to create valuable system by
interactin- 0ith its environment, customers, constituents, suppliers, technolo-y,
competition, economy, -overnment, etc, ! valuable system is created by the conversion
of available resources i,e, human, financial, physical, and intan-ible assets into -oods and
services that fulfill the needs of the customers and save the best interests of the bankin-
and financial or-ani2ation, Risk mana-ement performs all these diversified but inte-rated
0ork to achieve ma.imum outIput,, &ana-in- risk is actually mana-in- the
or-ani2ations: plannin-, or-ani2in-, directin-, and controllin- or-ani2ation systems and
resources to achieve ob<ectives, &ana-in- risk must come from 0ithin and act to chan-e
the or-ani2ation and its response to chan-es in the environment,
)o0 many domestic banks are hirin- e.perts of risk mana-ement to secure their precious
assets, )ational bank of Pakistan has also created risk mana-ement -roup at head office
and as 0ell as re-ional level to save the best interests of the bank and enhance the
chances of investments,
8)5 '>'$( L#$(I'7 "$N$@E"EN'
*urs is the a-e of cutthroat competition, scarcity of resources, technolo-ical
advancement, and inte-ration of financial services, >.pansion of economic markets and
cultural diversity, In these complicated and conflictin- financial and economic scenarios
the need of TG& in the ranks of domestic bankin- industry is indispensable, The middle
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Internship Report
mana-ement should need to have basic understandin-s about complicated mana-ement
processes, crises mana-ement tools, marketin-M product strate-ies, financial and treasury
mana-ement techni=ues, financial discipline, soundness and transparency of bankin-
system, human resource administration and above all -enuine leadership =ualities to
ade=uately operate 0ithin a hi-hly sensitive and complicated industry,
There is ur-ent need of havin- TG& in the realms of bankin- industry of the country, !t
the da0n of T* and increasin- chances of investment bankin- amon- the S!RR1
countries the TG& in the need of the hour, *ur commercial banks must pay attention to
this shift and start thinkin- strate-ically for providin- hi-h =uality products and services
to customers, !ccordin- to a study from Business 1ommunications 1ompany Inc, The
chan-in- /lobal 1ommercial Bankin- Industry Structure, total commercial bankin-
assets are e.pected to climb,
The bankin- industry should determine 0here improvement is needed, ho0 service can e
improved and 0here operatin- system breakdo0ns occur, 0hy they occur and ho0 they
can be avoided
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,A- RAT!O ANAL%#!#
$inancial analysis, 0hile varyin- accordin- to the particular interest of the analyst,
al0ays involves the use of various financial statements I primarily the balance sheet and
income statement and the cash flo0 statement, $inancial analysis involves the use of
various financial statements,
The balance sheet summari2es the assets, liabilities, and o0nersR e=uity of a business at a
point in time, 0hile the income statement summari2es revenues and e.penses of a firm
over a particular period of time and about cash flo0 it tells the cash -enerated by the
bank, ! conceptual frame0ork for financial analysis provides the analyst 0ith an interI
lockin- means for structurin- the analysis, $or e.ample, in the analysis of e.ternal
financin-, one is concerned 0ith the firmRs funds needs, its financial condition and
performance, and its business risk, Upon analysis of these factors, one is able to
determine the firmRs financin- needs and to ne-otiate 0ith outside suppliers of capital,
Ratio analysis involves methods of calculatin- and interpretin- financial ratios to analy2e
and monitor the bankEs performance,
IN'ERES'E% 0$R'IES
Ratio analysis of a firm, s financial statements is of interest to shareholders, creditors and
the firmEs o0n mana-ement, Both present and prospective shareholders are interested in
the firmEs current and future level of risk and return, 0hich directly affect share price,
The firmEs creditors are interested primarily in the short term li=uidity of company and its
ability to make interest and principal payments, ! secondary concern of creditors is the
firmEs profitabilityH they 0ant assurance that the business is healthy, &ana-ement is
concerned 0ith all aspects of the firmEs financial situation and its attempts to produce
financial ratios that 0ill be considered favorable by both o0ners and creditors,
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(IL#I%I'7 R$'I>S
'i=uidity ratios measure a firmEs ability to meet its current obli-ations,
These include:
1urrent Ratio
!cid Test Ratio
Sales to orkin- 1apital
orkin- capital
$urrent Ratio
$ormula to calculate current ratio:
Current ratio M current assets N current lia8ilities5
1urrent ratio definition and e.planation:
The current ratio is used to evaluate the li=uidity, or ability to meet short term debts,
+i-h current ratios are needed for companies that have difficulty borro0in- on short term
notice,
The -enerally acceptable current ratio is 3:7
The minimum acceptable current ratio is 7:7
Current ratio M M 9::,:96,;75,555 M 695,43;,C36,555
7ear :**- [ 5,79N
7ear :**+ [ 973,855,497,555M6;;,6;6,;78,555
[ 5,66N
7ear :**6 [ 696,7::,898,555M655,883,465,555
[ 5,69N
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A$!D TE#T RAT!O
$cid 'est Ratio M (cash O !ar4eta8le securities) N current lia8ilities

!cid test ratio definition and e.planation:
The acid test ratio measures the immediate amount of cash immediately available to
satisfy short term debt,
$cid 'est Ratio M 96,C:9,3:3,555L7;,5;4,73C,555M64;,7:8,4;5,555
7ear :**- [ 5,568
7ear :**+ [ 96,987,953,555L AI;3,8;7,83C,555BM6;;,4C;,493,555
[ 5,75:
7ear :**6 [ 68,77;,C6;,555LAI76,639,838,555BM655,883,465,555
[ 5,54;
#ALE# TO 'OR!N" $AP!TAL RAT!O

Sales to Cor4in/ Capital M sales N .or4in/ capital
! hi-h ratio may indicate inade=uate 0orkin- capital, 0hich reflects ne-atively on
li=uidity,
Sales to orkin- 1apital M 7;,6:9,C55,555M;3,399,4C;,555
?ear 3554 [ 38,93N
?ear 355: [ 7;,3C;,;C3,555M9;,979,7;C,555
[ 66,CN
?ear 355C [ 73,;95,4:8,555M6C,959,67;,555
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[ 69,9N
'orkin9 $a.ital Ratio
Cor4in/ Capital Ratio M current assets N current lia8ilities
The 0orkin- capital ratio is also referred to as the current ratio, See current ratio
definition and e.planation,
Cor4in/ capital definition and eJplanation:
orkin- capital is the li=uid reserve available to satisfy contin-encies and uncertainties,
! hi-h 0orkin- capital balance is needed if the business is unable to borro0 on short
notice,
Banks look at 0orkin- capital over time to determine a companyRs ability to 0eather
financial crises,
'oans often specify minimum 0orkin- capital re=uirements,
Cor4in/ Capital Ratio M 996,C7;,859,555M64;,7:8,4;5,555
7ear :**- [ 7,7;7
7ear :**+ [ 973,855,497,555M6;;,6;6,;78,555
[ 7,7C7
7ear :**6 [ 696,7::,898,555M655,883,465,555
[ 7,795
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LEVERA"E RAT!O#
'evera-e ratios measure the de-ree of protection of suppliers of lon- term funds, These
include:
Time Interest >arned
$i.ed 1har-e 1overa-e
#ebt Ratio
#ebt M >=uity Ratio
#ebt to Tan-ible )et 0orth Ratio
1urrent orth M )et 0orth Ratio
Total 1apitali2ation Ratio
$i.ed !sset Ratio M >=uity Ratio
'on- term !ssets versus 'on- term #ebt
Ti8es !nterest Earne1 Ratio
$ormula to calculate times interest earned:

'i!es Interest Earned Ratio M (net inco!e O interest) N interest5

'i!es interest earned definition and eJplanation
The times interest earned ratio indicates the e.tent of 0hich earnin-s are available to
meet interest payments,
! lo0er times interest earned ratio means less earnin-s are available to meet interest
payments and that the business is more vulnerable to increases in interest rates,
'i!es Interest Earned Ratio M 7;,6:9,C55,555L 34,949,546,555M34,949,546,555
7ear :**- [ 7,;6
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7ear :**+ [ 7C,997,C:5,555 L 36,863,86;,555M 36,863,86;,555
[ 7,C4
7ear :**6 [ 73,;95,4:8,555 L 37,3:;,:5:,555M37,3:;,:5:,555
[ 7,;4
Fi>e1 $7ar9e $overa9e Ratio
$ormula to calculate fi.ed char-e covera-e ratio:

$i.ed 1har-e 1overa-e Ratio [ A)et Income before Interest and Ta.es L interest L fi.ed
costsB M fi.ed costs,

Fi>e1 /7ar9e /overa9e ratio 1efinition an1 e>.lanation
The fi.ed char-e covera-e ratio indicates the risk involved in ability to pay fi.ed costs
0hen business activity falls,
The fi.ed char-e covera-e ratio is included in the financial statement ratio analysis
spreadsheets hi-hli-hted in the left column, 0hich provide formulas, definitions,
calculation, charts and e.planations of each ratio,
$i.ed 1har-e 1overa-e Ratio [ 9;, 6;,3C9,555L 34,949,546,555
7ear :**- [ 6657869:555
7ear :**+ [ 68,583,;4:,555 L 36,863,86;,555
[ C653;;33555
7ear :**6 [ 67,35C,687,555 L 37,3:;,:5:,555
[ 3765C876687
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%e8t Ratio

%e8t Ratio M lia8ilities N assets

The debt ratio is also kno0n as the debt to capital ratio, debt to e=uity ratio or financial
levera-e ratio,
The debt ratio sho0s the reliance on debt financin-,
! hi-h debt ratio is unfavorable because it indicates that the company is already
overburdened 0ith debt,
%e8t Ratio M 64;,7:8,4;5,555M996,C7;,859,555
7ear :**- [ 4C,43N
7ear :**+ [ 6;;,6;6,;78,555 M973,855,497,555
[ 4C,5CN
7ear :**6 [ 655,883,465,555 M696,7::,898,555
[ 4:,:5N
De5t to E:uity Ratio ,Finan/ial Levera9e Ratio-
$ormula to calculate debt to e=uity ratio Afinancial levera-e ratioB:
%e8t to E=uit3 Ratio M Short 'er! %e8t O (on/ 'er! %e8t N'otal Shareholders E=uit3
%e8t to e=uit3 ratio definition and eJplanation:
#ebt to >=uity Ratio is also referred to as #ebt Ratio, $inancial 'evera-e Ratio or
'evera-e Ratio, The debt to e=uity Adebt or financial levera-eB ratio indicates the e.tent
to 0hich the business relies on debt financin-,
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Internship Report
Upper acceptable limit of the debt to e=uity Adebt or financial levera-eB ratio is usually
3:7, 0ith no more than oneIthird of debt in lon- term,
! hi-h financial levera-e or debt to e=uity ratio indicates possible difficulty in payin-
interest and principal 0hile obtainin- more fundin-,
Total De5t to Tan9i5le Net 'ort7
If your business is -ro0in-, track this ratio for insi-ht into the distributive source of
funds used to finance e.pansion,
#ebt Ratio 1urrent L 'on-ITerm #ebt [ #ebt Ratio
Total !ssets
hat percenta-e of total funds is provided by creditors\ !lthou-h creditors tend to prefer
a lo0er ratio, mana-ement may prefer to lever operations, producin- a hi-her ratio,
T7e /a.itali0ation ratio
&easures the debt component of a companyRs capital structure, or capitali2ation Ai,e,, the
sum of lon-Iterm debt liabilities and shareholdersR e=uityB to support a companyRs
operations and -ro0th
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PROF!TA*!L!T% RAT!O#
Profitability ratios measure the earnin- ability of a firm,
These include:
)et Profit &ar-in
Return on !ssets
#uPont Return on !ssets
*peratin- Income &ar-in
*peratin- !ssets Turnover
Return on *peratin- !ssets
Sales to $i.ed !ssets
Return on Investment AR*IB
Return on Total >=uity
/ross Profit &ar-in
0rofit "ar/in Ratios
$ormulas to calculate profit mar-in ratios:
Net 0rofit "ar/in Ratio ($fter 'aJ "ar/in Ratio) M net profit after taJ N sales5
0rofit "ar/in Ratios definitions and eJplanations:
These three profit mar-in ratios state ho0 much profit the company makes for every
dollar of sales,
The net profit mar-in ratio is the most commonly used profit mar-in ratio,
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Internship Report
! lo0 profit mar-in ratio indicates that lo0 amount of earnin-s, re=uired to pay fi.ed
costs and profits, and is -enerated from revenues,
! lo0 profit mar-in ratio indicates that the business is unable to control its production
costs,
The profit mar-in ratio provides clues to the companyRs pricin-, cost structure and
production efficiency,
The profit mar-in ratio is a -ood ratio to benchmark a-ainst competitors,
Net 0rofit "ar/in Ratio M 7;,6:9,C55,555MC,4;6,877,555
7ear :**- [ 3,39
7ear :**+ [ 7C,997,C:5,555 M 75,394,333,555
[ 7,C5
7ear :**6 [ 73,;95,4:8,555 M:,798,558,555
[ 7,:;
Return on Assets Ratio
$ormula to calculate return on assets:
Return on !ssets [ net profit before ta.es M total assets,
Return on assets ratio definition and eJplanation:
The return on assets ratio provides a standard for evaluatin- ho0 efficiently financial
mana-ement employs the avera-e dollar invested in the firmRs assets, 0hether the dollar
came from investors or creditors,
! lo0 return on assets ratio indicates that the earnin-s are lo0 for the amount of assets,
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The return on assets ratio measures ho0 efficiently profits are bein- -enerated from the
assets employed,
! lo0 return on assets ratio compared to industry avera-es indicates inefficient use of
business assets,
Return on assets ratio M
:**- 5,+P
:**+ 59-P
:**6 56BP
Return on Assets Du Pont is a finan/ial ratio
That sho0s ho0 the return on assets depends on both asset turnover and profit mar-in,
The #u Pont method breaks out these t0o components from the return on assets ratio in
order to determine the impact of each on the profitability of the company,
Return on assets #u Pont can be e.pressed as
R>$ %u 0ont M (Net inco!e N Sales) J (Sales N 'otal $ssets)
This ratio helps to hi-hli-ht the impact of chan-es in asset turnover and profit mar-in,
R>$ %u 0ont M 7;,6:9,C55,555M996,C7;,859,555
7ear :**- [ 6,9CN
7ear :**+ [ 7C,997,C:5,555M973,855,497,555
[ 6,84N
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7ear :**6 [ 73,;95,4:8,555 M696,7::,898,555
[ 6,C;N
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(arket Ratio
&arket ratios are commonly used by the investors to assess the performance of a business
as an investment and also the cost of issuin- stock,
These include:
#ividend per share
>arnin- per Share
PriceM>arnin- Ratio
Percenta-e of >arnin-s Retained
#ividend Payout
#ividend ?ield
Book Value per Share
Earnin9 .er #7are
Before ta.
:**6 :**+ :**-
66,4; 66,83 69,47
!fter ta.
:**6 :**+ :**-
36,95 39,65 39,9:
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Divi1en1 Payout
:**6 :**+ :**-
6:,68N ;7,9;N ;7,5CN
Divi1en1 %iel1
:**6 :**+ :**-
5,56 5,56 5,58
Pri/e2Earnin9 Ratio
:**6 :**+ :**-
5;,97 7C,9C 75,;3
Divi1en1 .er s7are
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:**6 :**+ :**-
5:,3; 73,;5 77,;5
$a.ital A1e:ua/y Ratio
:**6 :**+ :**-
74,:;N 7C,C;N 7C,97N
A1van/e2De.osit Ratio
:**6 :**+ :**-
::,55N :6,8CN :8,94N
(is/ellaneous
!n/o8e E>.enses Ratio
:**6 :**+ :**-
3,:4 : 7 3,;4 : 7 3,:4 : 7
P*T2Total !n/o8e Ratio
:**6 :**+ :**-
:5,98N :5,7CN C6,45N
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Net (arku. in/o8e 2 "ross in/o8e ,"ross s.rea1-
:**6 :**+ :**-
43,99N :;,3CN :7,76N
Return on Evera9e ,ROE-
:**6 :**+ :**-
9;,55N 6:,CCN 67,98N
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,*- &OR!+ONTAL ? VERT!$AL ANAL%#!#
H>RID>N'$( $N$(7SIS &$($NCE SHEE'
0articulars
Increase or (decrease)
:**6 vs5 :**+
Increase or (decrease)
:**+ vs5 :**-
$!ount Pa/e $!ount Pa/e
$ssets
1ash and balance 0ith treasury
bank
Balances 0ith other banks
'endin- to the financial institution
InvestmentsInet
!dvancesInet
*peratin- fi.ed assets
#eferred ta.ed assetsInet
*ther assetsInet
'otal $ssets
:,37:,85:
A3,:C8,984B
A35,565,934B
98,C53,89:
35,:37,996
C,8C8,8C:
A77,567,9;5B
C4,6::,3:9
33,36N
I93,75N
I8;,57N
:4,76N
75,9;N
:C,84N
78,84N
A;3,:77B
36;,;47
6,594,:5:
A35,463,648B
96,;98,4:3
7,368,C75
I
7,897,:7;
6,676,564:
I5,76N
C,74N
348,8N
I74,93N
78,44N
:,:6N
75,4CN
4,5:N
(ia8ilities
Bill payable
Borro0in-
#eposits and other accounts
SubIordinate loan
'iabilities a-ainst asset, finance
lease
#eferred ta. liabilitiesInet
*ther liabilities
'otal (ia8ilities
Net $ssets
6,648,6:8
7;,9C6,6;;
69,C6C,334
A7,774,354B
I
7,745,7C3
;;5,88C
;9,757,876
79,3:;,5C7
9:,45N
C9,;4N
76,9;N
I:5N
9,86N
7:,8;N
69,89N
:3,965
A7C,:93,887B
64,7:C,548
9:8,363
I
A:96,53;B
8,;65,:;:
38,479,554
6,67C,6:8
5,C8N
A93,94NB
76,5CN
IC3,8;N
47,65N
4,64N
C,57N
Represented &3:
Share capital
Reserves
Unappropriated profit
478,983
8,664,379
A955,336B
8,:;:,947
7;5,4N
6:,4CN
I:,36N
3:,6CN
5
6,:C4,73:
4,C43,;43
C,465,:58
77,54N
7C8,3N
7;,59N
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2ER'IC$( $N$(7SIS >F &$($NCE SHEE'
:**6 :**+ :**-
$ssets
1ash and balance 0ith treasury bank
Balances 0ith other banks
'endin- to the financial institution
InvestmentsInet
!dvancesInet
*peratin- fi.ed assets
#eferred ta.ed assetsInet
*ther assetsInet
'otal $ssets
8,948N
3,3;5N
:,373N
3,7:7N
;:,89CN
6,:39N
5,5;5N
6,::6N
1**P
8,CC:N
,83:N
9,67;N
3:,;;5N
;6,697N
C,;::N
9,6;3N
I
1**P
4,866N
,877N
5,839N
35,:8CN
;8,7:;N
6,487N
I
9,9C;N
1**P
(ia8ilities
Bill payable
Borro0in-
#eposits and other accounts
SubIordinate loan
'iabilities a-ainst asset, finance lease
#eferred ta. liabilitiesInet
*ther liabilities
'otal (ia8ilities
Net $ssets
3,5:N
C,88N
:;,3;N
5,9CN
I
I
6,3CN
--5*6P
I
77,86N
3,;;N
8,C5N
:7,7;N
5,769N
I
5,77N
3,4;N
-65B+P
I
76,93N
3,6:N
;,75N
:9,9;N
I
I
5,58N
9,:8N
-65-:P
9
76,7:N
Represented 83
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assetsInet of ta.
7,;8N
:,35N
7,C7N
75,93N
7,;7N
77,86N
7,;6N
4,34N
7,39N
77,5CN
3,6CN
76,93N
7,;6N
4,;7N
3,5:N
77,:N
7,68N
76,7:N
774
Internship Report
0R>FI' $N% (>SS $CC>#N'
H>RID>N'$( $N$(7SIS
0articulars
2ariance in Pa/e
:**6 2s :**+
2ariance in Pa/e
:**+ 2s :**-
&ark upM returnedM interest earned
&arkupM ReturnedM Interest e.penses
)et &ark upM interest income
Provision for diminution
Provision a-ainst loans
Bad debts 0ritten off
)et mark upM interest income after provision
36,65N
:6,47N
73,;;N
I76,79N
787,:N
I88,;:N
7;8,7N
6,87N
3;,8:N
9:,36N
78,5:N
7;9,8N
I;9,44N
755N
67,73N
7:,38N
)on mark upM Interest income
$ee, commission D brokera-e income
#ividend Income
Income dealin- in forei-n currency
/ain on sale of securitiesInet
Unreali2ed loss on revolution
1lassified aid held for tradin-
*ther incomeInet
Total non markupM Interest income
76,88N
I69,93N
5,35N
79:,:N
I
755N
:;,65N
38,74N
4,89N
4,47N
7C,57N
9,83N
I;5,CCN
I
I
I;,::N
I75,74N
75,C8N
)on mark upM Interest e.penses
!dministrative e.penses
Total non markupM Interest e.penses
>.tra ordinary M unusual item
0rofit 8efore taJation
Ta.ationI1urrent year
IPrior year
I#eferred year
0rofit after taJation
I7C,38N
I4,;:N
I
1B51+P
I9,8CN
:B5+:P
68,54N
68,46N
I
:5+1P
:,9;N
*5+1P
778
Internship Report
2ertical $nal3sis of profit and loss account
0articulars :**6 :**+ :**-
&ark upM returnedM interest earned
&arkupM ReturnedM Interest e.penses
)et &ark upM interest income
Provision for diminution
Provision a-ainst loans
Bad debts 0ritten off
)et mark upM interest income after provision
755N
7:,;;N
43,99N
5,9:N
6,86N
5,74N
9,;4N
::,4;N
755N
39,:9N
:;,3;N
5,66N
8,67N
5,5CN
8,C9N
C;,C7N
755N
34,83N
:7,5:N
C,:5N
6,66N
I
75,56N
C7,58N
)on mark upM Interest income
$ee, commission D brokera-e income
#ividend Income
Income dealin- in forei-n currency
/ain on sale of securitiesInet
Unreali2ed loss on revolution
1lassified aid held for tradin-
*ther incomeInet
Total non markupM Interest income
4,8CN
6,79N
3,C4N
3,6;N
I
I
3,37N
78,6CN
8:,37N
4,34N
7,C:N
3,74N
9,:3N
I
I
6,79N
35,34N
4;,48N
:,7;N
7,;9N
7,47N
7,49N
I
I
3,6;N
79,9CN
:;,;;N
)on mark upM Interest e.penses
!dministrative e.penses
*ther provisionM AreversalBInet
*ther char-es
Total non markupM Interest e.penses
>.tra ordinary M unusual item
0rofit 8efore taJation
Ta.ationI1urrent year
IPrior year
I#eferred year
0rofit after taJation
3;,79N
5,59N
5,3;N
3;,9;N
+15+6P
39,CCN
,+51*P
7:,5:N
I
7,45N
74,4:N
I
6+5*P
78N
,-5*:P
74,49N
5,53N
3,5:N
35,89N
B,56BP
7C,37N
-59P
Unappropriated profit brou-ht for0ard
Transfer from surplus on revolution fi.ed asset
Profit available for appropriation
Basic D diluted earnin- per shareIafter ta.
78,6;N
5,73N
78,9:N
CC,;4N
7:,95N
5,56N
7:,96N
C;,9CN
73,47N
5,5;N
73,4CN
;7,3CN
735
Internship Report
,$- !NDU#TR% ANAL%#!#
'isted, 0hich are +abib Bank, United Bank, !llied Bank of Pakistan, #a0ood Bank,
Standard 1hartered Bank, 1itibank, #eutsche Bank and !B) !&R* Bank are main
forei-n banks in the country, These four banks continue to en<oy a si-nificant share in the
market, both in terms of deposits and advances, !ll the forei-n banks of the country are
busy to invest heavily in the field technolo-y and eIcommerce in order to overcome
branch limitation, !ll the forei-n banks have been busy to introduce ne0 products and
idea to -rab lar-er proportion of the local markets,
$orei-n banks are carryin- ma<or proportion of local business in credit cards, consumer
fiancYs and housin- finance, &any domestic banks have increased their -eneral
standards, *urs is the a-e of plastic money, InternetIbased service is constantly
increasin- the number of !T& machines, either by installin- their o0n machines or
makin- arran-ements 0ith other net0orks, The number of #ebit 1ards has also been
increasin- at an unprecedented rate, !ll the domestic and forei-n banks vi-orously
institutionali2ed consumer financin- in the country and earned handsome profits, The
borro0in- to private sector has also increased 0hich ultimately boosted the profitability
of all the domestic banks of the country, In the last 6 to 9 years many domestic banks
have been sufferin- from surplus li=uidity crisis mainly due to lo0 demand for credit and
slo0do0n of manufacturin- sector in the country, !lmost all the banks are no0 by to
invest in capital markets to increase their e.posure in e=uities, To stop that risky trend the
State Bank of Pakistan,
Issued the instructions to follo0 the Prudential Re-ulations in letter and spirit and not
invest in the capital markets beyond the limits, The domestic bankEs lendin- under
consumer finance and housin- finance has also been -ro0in-, The analysis of !nnual
Reports of banks sho0s that their income from core bankin- activities has been -ro0in-,
737
Internship Report
The other positive point is that there are -ro0in- e.pectations for increase in interest
rates,
The -ro0th in advances has started matchin- -ro0th in deposits, The =uality of asset as
0ell liability products have been improvin-, The rations of nonIperformin- loans have
decreased, The SBP38 Scheme has benefited the banks as 0ell as the borro0ers to payI
off their lon- standin- dues, Bank !lfalah is the first to opt for the listin- policy of the
-overnment and also offered its share to -eneral public, T0o of the stateIo0ned banks,
+abib Bank and United Bank have been privati2ed but the /overnment still holds a
substantial stake in these banks,
!llied Bank of Pakistan 0as privati2ed in early nineties, But due to many internal and
e.ternal reasons it continues to suffer, Some meanin-ful senior mana-erial chan-es
0ould be better at the earliest, #a0ood bank has come into e.istence as a result of
ac=uisition of Pakistan operations of a Sri 'ankan bank by a local business -roup, It is
also not listed at the local stock e.chan-es, &ee2an bank is the first bank of the country,
0hich is carryin- complete Islamic bankin-,
733
Internship Report
,D- FUTURE PRO#PE$T# OF T&E OR"AN!+AT!ON

The bank has no0 completed more than 78 years, since its privati2ation and it is, indeed,
-ratifyin- to note that durin- this period, &1B has performed 0ell and has sustained its
-ro0th in all the ma<or sectors, The 0ell deserved credit, for this -ood performance and
pro-ress, must surely -o to the BankEs mana-ement, its #irectors and, in no small
measure, to the entire &1B team for its dedication, concerted efforts and e.cellent team
spirit,
&1B has been a pioneer amon- the Banks in Pakistan, particularly in introducin- a
number of innovative bankin- products and services, $or the first time in the history of
Pakistan, these multifarious products mostly in the shape of savin- schemes have been
introduced by &1B 0ith brand names, This has set the trend and many other banks, both
local and forei-n, have since follo0ed in &1BEs footsteps, by launchin- ne0 products
and services, on similar lines,
It should be kept in mind that an investor can conduct as many precautionary tests as
possible in order to diversify the risks of investin-H ho0ever, he or she cannot completely
-et rid of the risks, Some risks are diversifiable but others are not, Therefore, althou-h
are current analysis of &1B sho0ed that its stock may yield capital -ains for those 0ho
invest in it, this notion is not 755N accurate, !lso, keepin- in mind that due to the
political and economic instability in Pakistan, the stock marketEs performance and &1Bs
share price can be si-nificantly be affected,
736
Internship Report
#'OT ANAL%#!# OF OR"AN!+AT!ON
739
Internship Report
SC>' $N$(7SIS
S*T AStren-th, eakness, *pportunities, and ThreatsB means internal stren-ths and
0eaknesses, and e.ternal opportunities and threats, It is important for any company,
or-ani2ation, business, product, services and even for non profit or-ani2ations, It sho0
that 0here 0e are stron- and 0here 0e are 0eak and also sho0s us that 0hat the benefits
industry has that are useful for company and 0hat is harmful for overall industry that
harms the company, S*T !nalysis for &uslim 1ommercial bank is described as
under,
S'REN@'H
&1B is the first privati2ed bank in Pakistan, 1ustomers can easily trust on it
because of its -ood reputation, Public confidence is its most po0erful tool,
&1B has a sound and healthy financial position in industry, Its profitability is
increasin- every year, !nd also profit earnin- per share is increasin-,
&arkup rates are less from others banks, !nd because of the peoples 0illin- to
take loan from &1B,
&1B bank is multinational bank, It is also its stren-th,
&obile bankin-, a ne0 system for consumers, 1onsumer can easily pay bills
throu-h their mobile phones, This feature is not available in most other banks,
!nd people like this system very much and opened ne0 accounts only because
of this ne0 system,
>mployee turn over is lo0 in &1B, 'o0 turn over sho0s that employee are
loyal 0ith &1B,
&1B 0ebsite for online customers is userIfriendly and its interface looks cool,
! ne0 user doesnEt face problems to use its 0ebsite,
73;
Internship Report
Pakistan is an Islamic country, &any peoples hesitate to deposit in bank
because of interest, Because it is forbidden in Islam, &1B -et the solution of
this by introducin- Islamic Bankin- system,
CE$?NESSES
The recruitment process is not fair in &1B, !nd because of this lo0
kno0led-eable persons are 0orkin- in &1B,
'o0 salaries of 0orkers dishearten them, So they do not sho0 their
effectiveness,
)o proper trainin- for 0orkers is also its 0eakness,
!nother 0eakness of the bank is absence of proper advertisement, There is no
proper advertisement of the products, !nd because of this many people donEt
kno0 about bank product,
!bsence of branches in small cities and to0ns, here there is a need of bank
there is no bank like in to0ns, &1B branches are in lar-e cities, They need to
established branches in to0n to -et competitive advanta-es,
There are no seatin- arran-ements for customer in many branches,
73C
Internship Report
>00>R'#NI'IES
IT is -ro0in- in Pakistan, &1B has also this opportunity,
Takin- loan of customer from banks in Pakistan is common, hen companies
start their ne0 pro<ect or people start ne0 business then they need money, Then
they donEt hesitate to take loan from banks, So 0orkin- in this environment is
an opportunity for banks,
The trend of Islamic bankin- is also -ro0in- because Pakistan is an Islamic
country,
'HRE$'S
>conomic condition in Pakistan is -oin- do0n 0ith every passin- day,
&any forei-n investors do not invest in Pakistan due to the han-in-
condition of Pakistan economic condition,
Pakistan political condition is also threat for industry, Because army rolled
more then common public as a -overnment, This situation is harmful for
PakistanEs economic, orld political condition also influences the 0hole
industry,
!s the industry is -ro0in-, competition is also -ro0in-, &any others
banks are establishin- so competition is hi-h, >very bank tries to make
more profit by introducin- ne0 product and services, So other competitor
must do accordin- to that,
Increasin- the interest rate is losin- the value of money market, People try
to invest in stock market instead of investin- in money market,
'ack of skilled people in Pakistan is also a threat, 'ocal skilled people 0ant
to do 0ork in forei-n countries because of hi-h salaries,
73:
Internship Report
$ON$LU#!ON
orkin- as an internee in &1B and accordin- to the $inancial Statement of the bank I
think that &1B is makin- pro-ress by leaps and bounds, The profit of the bank is
increasin- every year, !lso the &IS A&ana-ement Information SystemB enhanced the
efficiency of the Bank, The bank pays a lo0 Interest rate on deposits 0hich less attractive
for its customers, !lso problem 0ith bank is too len-thy formalities and procedures
involved in mort-a-e of properties offered as collateral to the bank,
Bank needs to control mentioned belo0 recommendation for increasin- their profit, &1B
has no branches in to0ns, If the Bank established branches in to0n then its pro-ress 0ill
be more then no0, Installation of !T& in most of branches is also a competitive ed-e for
the bank, 1ustomers easily 0ithdra0 cash from !T& 39M:, 1han-es in top mana-ement
also have a positive effect on Bank, It is also recorded that after privati2ation &1B made
more pro-ress, Its profit increased every year,
I am not satisfied 0ith &1B customer care, &1B must care and respect their customer as
the customers are assets for the bank, But there is less control over 1ustomer care,
!ccordin- to my point if vie0 &1B has a bri-ht future if &1B control over its S*T,
734
Internship Report
RE$O((ENDAT!ON#
!fter observation, learnin- in &1B, readin- Bank financial statement more deeply and
kno0in- more about bankin- sector I su--est some recommendations that if &1B cover
them then &1B can stay at its position and make more pro-ress,
The salaries are not enou-h accordin- to bank 0orkers <ob, Some time they
0ork more until late ni-ht to maintain their record but they do not paid by the
bank for their e.tra time, &ana-ement should increase their salaries and also
paid them for 0orkin- e.tra hours,
!s 0e kno0 that there is a dramatic chan-e in technolo-ies, 1ompetition
amon- industries increasin- day by day, So bank mana-ement must arran-e
trainin- for their employee especially in &IS, >very 0orker must be a
computer literate,
&1B mana-ement should e.pend their !T& net0ork to more branches and
also this facility should be available in to0n, Because this is a competitive ed-e
for &1B
Their should be a <ob rotatin- system, >very 0orker must kno0 the 0ork of all
departments of branch, So that every 0orker 0ill be capable to do 0ork in case
of emer-ency or in case of <ob rotatin-,
)e0 0orkers selection should be made at merit system and la2y staff should be
removed to meet the -lobali2ation, So mana-ement should first remove the la2y
staff and then select a ne0 staff only on merit basis, Selected staff 0ill 0ork
more effectively to make their <ob permanent,
Their should be an incentive plan on yearly basis so that 0orker be encoura-ed
to do 0ork hard, hen mana-ement -ives incentives to their 0orker then the
0orkers that do not 0ork hard, they try to 0ork hard to -et incentives, This
thin- creates competition amon- 0orkers and encoura-es 0ork to do 0ork
hard,
738
Internship Report
$orei-ner trainer should be hired to train the top mana-ement, !nd should also
be a trainin- pro-ram for 0orkers after some period,
1ustomer care service should be improved, In this environment, 0here a lar-e
number of competitors are present, 1ustomers need satisfaction, They 0ill -o
there 0here they -et respect,
&1B should establish branches in to0ns to -et competitive advanta-es,
Because mostly bank donEt -ive attention to the small city, If &1B -ive
attention to small cities and to0n then it 0ill be a positive step to increasin- the
over all profit,
765
Internship Report
REFEREN$E# AND #OUR$E#
'e5sites
000,mcb,com,pk
000,0ikipedia,com
Re.orts
http:MMmcb,com,pkM=uick]linksMeconomic]reports,asp
http:MMmcb,com,pkMirMannual]final]result]54,asp
http:MMmcb,com,pkMirM&1BN35!IReport355:,pdf
http:MMmcb,com,pkMmcbMfinancial]contantM&1BN35!IReportN35$I)!'N355CI
59I5:,pdf
*ooks
$inancial Statement !nalysis, +andouts of Virtual University
!llen 'ouis !, J&ana-ement and *r-ani2ationK IST >d, Tokyo &c/ra0 +ill,
(o-akusha 'td,
Ot7ers
Staff of &1B branch (hayaban Sar0ar Branch #era /ha2i (han
Personal *bservations
Readin- different Banks report
Readin- Previous &1B Internship Reports
767