Professional Documents
Culture Documents
On
Submitted by
Raewes Khan
Roll N. 40
Session 2013-17
Lecturer, UMSIT,
Dear Sir,
This report is in response to the instructions of your letter No. B Admin/ /2016
Bank Narr Branch Kotli (A.K). I have completed my six week training from 01-07- 2016
to 22-08- 2016 JS Bank Narr Branch Kotli (A.K). My finding and related
It would be pleasure for me to hear your comments after you have gone through this
report. Though while reading if you like to discuss any point with me, I shall be happy to
Yours truly,
Raees Khan
Roll No.40
BBA (Finance)
Session 2013-17
1
Internship letter
2
Acknowledgements
Im thankful to my respected teacher Mr. Umer Razzaq, who provided guidance at every
difficult step. Last, but not the least, are the employees of JS Bank Limited, to whom I
acknowledge gratitude for their limitless support through this learning experience.
Manager for providing sufficient information on JS Bank Naar Branch Kotli Mr. Mehtab
Zeb, Employee for conducting an orientation in the JS Bank Naar Branch Kotli. on the
Finally, Im thankful to all my teachers and fellows who guided me during the whole
internship process.
3
Executive summary
The main purpose of internship is to learn, by working in practical environment and to apply
the knowledge acquired, during the studies, in a real world scenario in order to tackle the
problems. My intentions were to know how to work in financial institutions, to know about
the office environment and to know how to deal with different kind of people.
I have discussed about every major aspect of the bank, which I observed during my
internship. Along with it, the processes, policies and procedures of the bank have also been
discussed in detail. I also analyzed the banking industry of Pakistan by using SWOT analysis.
In this report the analysis of the organization has been done and the financial aspects have
been evaluated to analyze the current position of the organization. Along with it, the
background analysis, the business process analysis, and the internal environment and external
environment of the organization have been discussed and the recommendations for the
During my internship program, I mainly worked with the departments, general banking and
advances. These departments have been discussed in along with the policies and procedures
therein. About JS bank my learning experience in this Kotli branch is really worth full and
I have made my report with my experience at the JS BANK along with my overall insight of
the organization
organization.
In the end I have listed the references used during the preparation of my internship report.
4
LIST OF ACRONYMS
Abbreviations Meanings
Ltd. Limited
CD Current Deposits
5
(RF) Running Finance
PO Pay order
DD Demand Draft
MT Mail Transfer
6
Contents
CHAPTER 1...............................................................................................................................
1 Introduction.........................................................................................................................
1.1 Overall Banking Sector in Pakistan.............................................................................
1.2 Overview of JS Group.................................................................................................
1.3 Introduction.................................................................................................................
1.4 JS Info. Com................................................................................................................
1.4.1 The Resource Group............................................................................................
1.4.2 T.V Channels........................................................................................................
1.4.3 Cinepax................................................................................................................
1.5 JS Resources................................................................................................................
1.5.1 Sprint Energy........................................................................................................
1.5.2 Hascombe Oil.......................................................................................................
1.6 JS Transportation.........................................................................................................
1.6.1 Air blue.................................................................................................................
1.6.2 JS Air....................................................................................................................
1.7 Vision Statement..........................................................................................................
1.8 Mission Statement.......................................................................................................
1.8.1 Current Performance............................................................................................
1.9 Future Directions.........................................................................................................
1.9.1 Pehla Qadam........................................................................................................
1.9.2 Features of Pehla Qadam.....................................................................................
1.9.3 Guaranteed Protection..........................................................................................
1.9.4 Access to savings at all times...............................................................................
1.9.5 Minimum Premium............................................................................................
CHAPTER 2.............................................................................................................................
2 Operations of Organization..............................................................................................
2.1 The Narr Branch Kotli has following departments....................................................
2.2 Account Departments................................................................................................
7
2.2.1 Opening of account by an individual.................................................................
2.3 An Introduction.........................................................................................................
2.4 Account Opening Form and Specimen Signature Card............................................
2.4.1 Specimen Signature Card...................................................................................
2.4.2 Account Opening Register.................................................................................
2.4.3 Issuance of Cheque Book...................................................................................
2.4.4 Issuance of Pass Book........................................................................................
2.4.5 Recording into General Ledger..........................................................................
2.5 Types of accounts maintained by JS Bank of Pakistan Narr Branch.........................
2.5.1 Current Account.................................................................................................
2.5.2 Features..............................................................................................................
2.5.3 Profit and Loss Sharing Account:......................................................................
2.5.4 Features..............................................................................................................
2.5.5 Fixed Deposit Account.......................................................................................
2.5.6 Features..............................................................................................................
2.6 Remittance Meaning..................................................................................................
2.6.1 Procedure............................................................................................................
2.6.2 Cash Department................................................................................................
2.7 Functions of Cash Department..................................................................................
2.7.1 Cash Receipt.......................................................................................................
2.8 Finance/ Credit Department......................................................................................
2.8.1 Procedure for Grant Granting of Loans.............................................................
2.8.2 Granting of Loan................................................................................................
2.9 Types of Loans...........................................................................................................
2.9.1 Demand Finance.................................................................................................
2.9.2 Agriculture Finance............................................................................................
2.10 Computer Department...............................................................................................
2.10.1 Duties of Computer Department........................................................................
2.10.2 Wealth Management...........................................................................................
8
2.11 JS Financial Services.................................................................................................
2.12 JS non-Financial Services..........................................................................................
CHAPTER 3.............................................................................................................................
3 SWOT Analysis of JS Bank Narr Branch........................................................................
3.1 Strengths....................................................................................................................
3.2 Weaknesses................................................................................................................
3.3 Opportunities.............................................................................................................
3.4 Threats.......................................................................................................................
3.5 Financial statements of JS Bank................................................................................
3.6 Ratio Analysis of JS Bank.........................................................................................
3.6.1 Return on Equity................................................................................................
3.6.2 Return on Assets.................................................................................................
3.6.3 Earnings per Share.............................................................................................
3.6.4 Return on Deposit..............................................................................................
3.6.5 Cash/Deposit Ratio.............................................................................................
3.6.6 Interest Income/Total Income Ratio...................................................................
3.6.7 Net Profit Margin...............................................................................................
3.6.8 Operating Expense Ratio....................................................................................
3.6.9 Total Asset Turnover..........................................................................................
3.6.10 Advances to Total Deposits................................................................................
CHAPTER 04...........................................................................................................................
4 My Internship Responsibilities........................................................................................
4.1 RESPONSIBILITIES................................................................................................
4.2 Departments of JS......................................................................................................
4.2.1 Cash department.................................................................................................
4.2.2 Deposit Department...........................................................................................
4.2.3 Clearing Department..........................................................................................
4.2.4 Account Department..........................................................................................
4.3 Problem Encountered................................................................................................
9
4.4 Skills Learnt and Gained...........................................................................................
CHAPTER 5.............................................................................................................................
5 Recommendations and Conclusion..................................................................................
5.1 Recommendations and Conclusion...........................................................................
5.1.1 Computerization in Banking..............................................................................
5.1.2 Evening Bank.....................................................................................................
5.1.3 Proper Safeguarding of Bank Branches.............................................................
5.1.4 Reward System & Timely Promotions...............................................................
5.1.5 Effective Chequing System................................................................................
5.1.6 Loans should be sanctioned on Merit.................................................................
5.1.7 Professionalism..................................................................................................
5.2 CONCLUSION.........................................................................................................
References................................................................................................................................
10
CHAPTER 1
1 Introduction
At the time of independence in 1947, there were 38 scheduled banks with 195 offices in
Pakistan but by the December 31, 1973 there were 14 scheduled Pakistani commercial
banks with 3,233 offices all over the Pakistan and 74 Offices in foreign countries.
Nationalization of banks was not done 1st January 1974 under the nationalization act
1974, due to certain objectives. But it had negative effect on efficiency of the banking
sector afterward a privatization commission was set up on January 22, 1991. The
commission transferred many banks to the private sector i.e., MCB and ABL. The
government permitted and approved the establishment of new banks in 1991, hence many
new private banks have incorporated, since then JS Bank is one of the namely established
80 percent of the banking assets are supposed by the private sector banks and the
professionalism and service orientation in place of bureaucracy and unconcern. The banks
that were losing money due to inefficiencies, waste and limited product range have
become highly profitable business. These profits are, however, being used to strengthen
the capital base of the banks rather than paying out to the shareholders. The least capital
requirements have been raised from Rs. 500 million to Rs. 6 billion over alengthy period
in a phased manner. The consolidation of the banking sector into fewer but tougher banks
will lead to better management of risk. The banks that were loaded with the non-
1
performing and defaulted loans have cleared up their balance sheets in an open clear,
across-the-board manner. Contrary to the popular myth the main recipients of the write-
offs of the old outstanding and unrecoverable loans have been from almost 25 percent to
6.7 percent by Dec. 2005. Small individual debtors the ratio of non-performing loans of
the Commercial Banks to total advances has failed. The quality of new assets has
improved as severe measures are taken to evaluate new loans, and assure the underlying
securities. Online Credit Information Bureau reports provide efficient information to the
banks about the credit history and track record of the borrowers. Loan sanctions on
political considerations have become faded. Non-performing loans account for less than 3
percent of all new loans disbursed since 1997. The human resources base of the banks has
been significantly upgraded by the adoption of the principles of merit and performance
throughout the industry. Recruitment is done through a highly competitive process and
promotions and compensation are linked to training, skills and high performance. The
economists and other highly educated persons rather than Clerical and Non Clerical
Workers. The banking industry has become the chosen choice of profession among the
young graduates. Banking Technology that was almost non-existent in Pakistan until a few
years ago is transforming the customer services and access on-line banking, Internet
banking, ATMs, mobile phone banking and other modes of delivery have made it possible
to provide convenience to the customers while falling the transaction costs to the banks.
Credit Cards, Debit Cards, Smart Cards etc. are a booming and expanding business in
Pakistan. Once the RTGS is put in place the payment system in Pakistan. Would enter a
new phase of innovation. Competition among the banks has forced them to move away
from the traditional limited product range of credit to the government and the public sector
enterprises, trade financing, big name corporate loans, and credit to multinationals to an
2
ever-expanding menu of products and services. The borrower base of the banks has
expanded four fold in the last six years as the banks have diversified into agriculture,
SMEs, Consumers financing, mortgages, etc. The middle class that could not afford to buy
cars or apartments as they did not have the financial power for cash purchases are the
biggest recipients of these new products and services. Along with strong rule, supervision
and implementation capacity of the State Bank of Pakistan a number of measures have
been taken to put best corporate governance practices in the banking system. Fit and
proper criteria have been set for the Chief Executives, members of the Boards of
Directors, and top management positions. Accounting and audit standards have been
brought to the International Accounting Standards (IAS) and the International Audit
Codes. External audit firms are rated according to their performance and track record and
those falling short of the satisfactory standards are excluded from auditing the banks. The
foreign exchange market that was highly regulated through a system of direct exchange
controls over suppliers and users of foreign exchange has been relaxed and all purchases
and sales take place through an active and vibrant inter-bank exchange market. All limits
have been removed with full current account convertibility and partial capital account
convertibility. Foreign investors can now bring in and take back their capital, remit profits,
dividends and fees without any prior removal and directly through their banks. Similarly,
foreign portfolio investors can also enter and exit the market at their own will. The main
lesson learnt from the last decade suggests that financial sector functions effectively and
efficiently only if the macroeconomics situation is favorable and stable. The need to
maintain macroeconomic stability will thus remain paramount in the years to come.The
plan for further reforms in the financial sector is still quite difficult and the challenges to
spread the benefits of financial liberalization among the middle and low income
households and small and medium farms and enterprises are still huge. There are several
3
areas of dissatisfaction with the banking sector that need to be addressed. The most serious
complaint against the banking system in Pakistan today is that the depositors are not
getting adequate return on their bank deposits. The difference between the monthly
weighted average rates of lending and deposits is taken as display of the spreads earned by
the banks. It is true that these spreads have widened in the recent months land this wonder
has caused resentment among those whose only source of income is their returns from
bank deposits. But it is important to examine the facts and their form judgments. The old
deposits are earning much lower rate because they were lodged at the time when the
overall structure of interest rates had come down suggestively. This lag is adjustment
between the deposit and lending rates is due to the costs incurred by the depositor in
JS Group is one of the largest business conglomerates and financial services groups in
services, capital market, money market, forex market, insurance and asset management
products. The Group has grown over the last decades through building partnerships with
globally recognized and leading organizations and has a diversified investment portfolio
under the umbrella of FS & CO. JS & Company is one of the largest investment
companies in Pakistan and one of the most diversified financial services company. JS and
Company is rated AA+ (long term) and A1+ (short term). The Pakistan Credit rating
4
1.3 Introduction
JS Group also has investments throughout Pakistans economy, including its industrial
sector, technology & media sectors, commercial real estate, energy & natural resources
and aviation.
JS Industrial
JS Info com
JS Resources
JS Transportation
5
1.4.1 The Resource Group
In addition to JS Group, TRG has IFC and AIG Capital Partners as Investors in company.
This business launched HUM TV and MASALA TV, satellite broadcast free to air
entertainment and lifestyle channel launch in 2004. Masala TV is the first exclusive 24
1.4.3 Cinepax
Cinepax is the Pakistans first multiplex cinema screen company building a nationally
branded chain.
1.5 JS Resources
Sprint energy was formed in 2004 to amalgamate the upstream oil and gas assets of the JS
Group. Sprint owns interests in oil and gas companies in Pakistan, U.S.A and Oman.
Hascombe Oil is an oil marketing company in the process of building out approximately
6
1.6 JS Transportation
Air blue commenced operations in 2004 and currently operates a fleet of eight Airbus A-
320, A-321, and Beech craft 1900 C (wet lease) aircraft. It operates 168 flights weekly,
serving Karachi, Gwadar, Islamabad, Lahore, Peshawar and Faisalabad with in Pakistan.
Airbus recently placed a US$790 million order with Airbus to purchase 10 additional
1.6.2 JS Air
JS Air is a regular air charter business established to serve low passenger volume routes
for commercial airlines as well as providing executive charter services to the oil gas
quality and innovative range of banking services and products to our customers by a
highly motivated team of professionals whilst maintaining high ethical and regulatory
To provide quality and innovative range of banking services and products to our customers
by a highly motivated team of professionals whilst maintaining high ethical and regulatory
7
1.8 Mission Statement
exceeding service expectations, though a single relationship via conventional and non
service groups - JS Group, has currently selected Oracle Exudate Database Machine X3 to
provide an integrated platform to run its card and core banking applications, with the
objective of supporting rapid growth and enhancing system performance. Oracle Exudate
Database Machine X3 provides the Bank with a robust, scalable and integrated platform to
support its mission critical applications, and at the same time, reduce overall operational
JS banks future direction includes the following step which they include in their banking
operations to expand the quality of their bank and improve their profitability.
Planning for the future means providing for your children as well as yourself. Keeping in
view the rising cost of education, JS Bank brings you Pehla Qadam Child Education
Plan, exclusively designed to help shape your childs future. The plan, underwritten by
EFU Life Assurance Ltd., is a complete financial planning package designed for you to
8
save for your childrens future educational needs. Flexible enough to be customized
according to your specific requirements, Pehla Qadam provides high value savings
child.
The plan provides complete access to the accumulated fund value at all times.
After full contributions for two years, the fund can be withdrawn for its full or partial
value.
In case the customer opts for complete surrender, all units in the fund will be en-
cashed at the current bid price and the plan will be cancelled.
9
The minimum annual premium required for PehlaQadam is Rs. 24,000.
10
CHAPTER 2
2 Operations of Organization
Account Department
Remittance Department
Cash Department
Finance/ Credit Department
Admin Department
Computer Department
these departments;
Deposits are important to the bank as a backbone is to the body of a man. They are the
lifeblood of the bank. JS Bank of Pakistan and all other commercial banks perform the
function of deposit accepting from the general public by offering suit JS rates of interest
After entering into bank premises the person goes through the following steps for opening
2.3 An Introduction
11
The first important step to take place in bank is to get satisfactory introduction of the
This introduction is made from the person /party who are respect JS and honor JS and
In JS (Narr Branch) the branch manager takes great care of this step and gets introduced
with the person himself. His main intention is to determine the prospective customers
opening an account.
The person who wants to open account in JS, first of all submitted copy of JS identity card
because the bank verify the data of his clients from JS Data Base and Registration
Now the person is provided with an application form known as Account Opening Form.
Title of account
Address
Computerized Identity JS Card number
Telephone No. (Office and Residence)
Introductory reference (all mentioned particulars of introducing him)
The customer attaches a copy of his JS Identity Card also copy of two guarantors who
already have their accounts in the same branch, with the account opening form.
12
2.4.1 Specimen Signature Card
Specimen of signatures will be obtained from depositor at the time of opening his account.
A specially designed card is used for this purpose; the card must be countersigned by an
Now the name of the customer will be recorded in account opening register, and from
here the account no. of the customer will be written on (top most corners) account opening
The cheque book will ordinarily be issued to all customers desiring to have chequing
facility. Cheque book consists of 10, 28, 80, or 100 leaves depending upon customer
requirement. Customer can withdraw money by signing a cheque and writing the amount
he wants to withdraw from his account. A special cheque book register is kept to enter the
Pass Book is another important type of book handed over to the customer as he opens the
account with the bank. The withdrawal and deposit of money is recorded date wise in this
book.
13
2.4.5 Recording into General Ledger
The concerned officer records the name and amount deposited with the bank into general
ledger. Separate ledgers are maintained for different types of accounts e.g.
As and when customer will deposit the money, amount will be credited in general ledger
This account is also known as running balance account. Simply we can say A bank
Its main purpose is to serve the businessman. Form number F-83 is provided to the person
2.5.2 Features
14
2.5.3 Profit and Loss Sharing Account:
In general it is also called saving account .To provide interest free banking facilities in
Pakistan, this type of account was introduced in January 1982 after the Islamization of
banking.
2.5.4 Features
Instead of having fixed return in the form of interest the deposited money will be
4000 approximately.
This account is the major source of funds for the banks. This account is best for
People who have surplus money and dont need such funds in nearer future.
2.5.6 Features
15
Remittance Department
station, either in cash, money order, postal order, bill of exchange, cheque, bank draft etc.
is known as a Remittance.
Now I will explain the procedure and importance of Bank Draft: (DD)
branch of its own bank or any other bank to pay a certain sum of money to his order, for
value received. From the definition it is clear that the draft is pay JS to the beneficiary
himself or to his order. The beneficiary or payee has to prove his identification at the
paying office of the bank, which sometimes causes inconvenience to the public. Draft is
the most popular and common form of remitting funds from one place to another. Any
person who may or may not happen to be the banks customer against payment of bank
charges can purchase drafts. It is considered to be a source of income for the bank.
2.6.1 Procedure
In JS Bank of Pakistan the drafts are issued on submission of application form (always
printed) filled in and signed by the purchaser with his full name and address.
Date
The Name of the Office on Which It Is Drawn
16
The name of the beneficiary
Amount in words and figures
Bank exchange rates
The signature and address of the applicant
The draft is issued after the applicant tenders the money. Two authorized signatories of the
bank always sign draft. A separate book Draft issued register is kept to record the
particulars of the draft issued. The drawing branch of the bank will give credit to the
drawer branch on the same date the draft is issued; through their account for settling inter
branch transactions. Usually all the banks insert special code number known as CHECK
SIGNAL on the relative draft advices for all the drafts for more than Rs.8000/-.
JS bank of Pakistan does not pay the drafts before the receipt of relative advice. On receipt
of relative advice the drawer branch will credit the amount into their draft payJS account
and each time a draft is paid this account will be debited with the amount of the draft paid.
In case the draft advice is not received, the draft will be paid ex advice duly entered in
the "ex-advice register and the entry in the said register will be marked off on receipt of
Cash department of JS is given the complete responsibility of handling all receipts &
disbursement of cash as a result of transactions in both local & foreign currencies & near
As a consequence it is also responsible for the book-keeping of those transactions & the
17
2.7.1 Cash Receipt
The depositor uses cheque deposit slip for depositing the amount. There are two types of
Both are in different colures for clear identification. There are two parts of cash deposit
slips.
Counter foil.
Adjacent credit voucher.
Procedure
The cashier first verifies all the requirements of the cash deposit slip that whether these are
fulfilled or not & verifies the amount written in words & figures. After that he enters the
detail of the receipt in the Inward Cash Register. The deposit slip is stamped, cash is
received & counter foil is given to the depositor. The adjacent credit voucher is used for
Encashment of Cheque
a) Accepting of Cheque
The cash is paid against the cheque of the client. The following points are kept in mind
18
It should not be postdated.
It should be a bearer cheque so the word bearer should not be crossed.
Payment is not stopped by the drawer.
Amount in words & figure should be same.
Alteration in date/figure/word require drawers full signature, with signature on the
cheque.
If signatures are not the same then it is returned back otherwise forwarded to
computer terminal.
b) Affirmation of Signature.
After receiving the cheque the office verifies the signature of the account holder with the
signature on the signature on the cheque .If signature are not the same them it is returned
The cheque is received in computer terminal, where the computer operator checks the
balance of the account holder. The operator also sees whether the stop payment
instructions are received from account holder or not .After considering these two points
computer operator posts the cheque in account holder ledger & returns the cheque back to
the officer.
d) Payment of Cash.
19
The cheque is cancelled after posting is returned to cashier. The cashier enters the cheque
in Cash Paid register. Pays against the second signature of the receiver on the back of the
check.
Nearly every day in the morning time, cash comes from the state Bank of Pakistan through
brinks. This cash is required by the bank to meet the current needs of cash.
JS bank of Pakistan maintains a separate finance section. Its purpose is to grant loans to
the needy people, small & large business concerns, and to industries. Advances in the form
of money are the most remunerative use of bank resources. The management of the bank
documentation, securitization etc. while requesting for loan. After proper satisfaction from
the party concerned the bank will grant loan to the party. Under the Islamic modes of
financing from 1982 onwards, JS bank of Pakistan gives loans on the basis of Mark-up
instead of interest. Mark-up rate is different depending upon the type loan.
The following procedure is maintained by JS bank while granting loan to any person;
The bank provides a prescribed application form to the borrower. The borrower will fill
20
Amount of the loan he needs.
Period of time.
This form will provide the information about the business he is involved, and also provide
After detailed investigation, and documentation if the finance section finds the party well
satisfactory and feasible then they sanction the finance to the concerned party and the
JS Bank of Pakistan provides various types of loans depending upon the requirement of
Under a demand loan arrangement, a fresh demand loan account is opened through the
borrower may be having other deposit accounts with the banks. The amount of loan has to
upon. The borrower cannot operate a demand loan account by depositing and withdrawing
amounts periodically.
21
Agricultural finance is of great importance in Pakistan, as 68% of the population of the
country engages in the profession of agriculture. The agriculture finance is granted for the
agricultural purposes which include the development and production purposes. Agriculture
The short term loan is taken at the most for one crop period and is fully recover JS from
the proceeds of the same crop after its harvest. This loan is needed for seeds, fertilizers,
pesticides and wages of hired labors which are meant for input for a particular crop.
The medium term loan is usually taken for the period of three years and is taken for the
purchase of tractors, tube wells, cattle,, livestock and dairy and poultry farming etc.
The long term loan is generally taken for a period above three years and the amount is
used for buying land, construction embankments, and improvement of land of for
arranging drainage.
JS Bank Pakistan Kotli Branches its own computer department which is responsible to
store the record of all bank transactions. This department is supervised by an IT Specialist
who is the administrator of the computer department. This department performs the
following duties;
22
All the cheques, receipts and deposit slips are posted in the computer is the key
23
We dispatch the Account
statement as per the
following schedule.
Fix Deposit
Same Day Execution.
Cancellation.
24
Handling of Check
Within Five minutes of receipt of the cheque at
Deposited for clearing /
the teller counter.
Transfer
Additional Information
At JS Wealth Management, we strive to combine the best of both worlds for you
independent, personalized products and services with our financial strength and resources
individual needs.
We appreciate that each investor is unique. Not only do our clients have different goals
and needs, the role that investing plays in their lives can be very different. Some like total
control over their investments whilst others like to work closely alongside a trusted
advisor when making their strategic investment decisions. Then there are those that like
the day-to-day involvement, but dont want to deal with the paperwork associated with the
Our Wealth Management Services are for individuals looking to create, preserve and grow
their wealth with the right investment solutions customized by a team of professionals. So,
no matter where you are on your pathway to success, how experienced an investor you are,
or how involved in your investment decisions you want to be, we have a service to suit
your needs.
25
As part of our Wealth Management Services, our product lines are divided into the
following:
1. Banc assurance
2. Mutual Funds
material, sea port, call center, oil & gas exploration, oil marketing, real estate, hotels,
26
CHAPTER 3
SWOT Analysis is a technique that is used to get the information about the internal and
considering various forces that can affect the operations of JS BankBranch Kotli, I
3.1 Strengths
3.2 Weaknesses
3.3 Opportunities
27
Increase in foreign remittances has greater opportunities for the branch.
Increase in banking habits of the public can increase its accountholders.
Improve income level of the people may in results in increase its deposits.
High demand for credit by the public may increase its lending and advances.
3.4 Threats
Increase in competition among banks restricts the branch to earn high profits.
Its Limited product line cannot attract the customers properly.
No proper advertising system is used by the JS Bank Branch Kotli.
There are also Security problems for the branch.
Decrease in the savings of the public results in the decrease of deposits.
Rise in Inflation reduced the saving power of the customers.
28
2015 2016
Note (Rupees in 000)
ASSETS
Cash and balances with treasury banks 4,609,306 3,880,688
Balances with other banks 312,638 136,880
Lending to financial institutions 7 5,170,901 4,073,103
28,833,88
Investments net 8 5 22,649,824
19,893,87
Advances net 9 1 18,018,778
Operating fixed assets 10 3,120,922 3,021,439
Deferred tax assets net 11 963,728 1,082,466
Other assets 1,625,165 1,057,391
64,530,41 53,920,56
6 9
LIABILITIES
56,781,51 46,443,53
29
3 9
REPRESENTED BY:
10,002,93
Share capital 0 10,002,930
Reserves 145,620 89,978
(1,944,88
Discount on issue of shares 0) (1,944,880)
Accumulated losses (420,350) (642,918)
7,783,320 7,505,110
Deficit on revaluation of assets - net of tax 14 (34,417) (28,080)
7,748,903 7,477,030
Ratio Analysis is an important and age-old technique of financial analysis. Ratios are
These simplify the comprehension of financial statement and tell the whole story of
associated with successful and unsuccessful firms, also reveal strong and weak firms.
These help in planning and forecasting, these can assist management in its basic
Bankers etc.
30
However, the ratios are only indicators, they cannot be taken as final regarding good and
bad financial position of the business other things have also to be seen.
Dividing profit after taxation by shareholders equity. ROE compares net profit after taxes
Table NO. 01
This ratio shows the efficiency of organization that how efficiently utilizes their assets.
It is calculated as:
31
Table NO. 02
Table NO. 03
shares
Table NO. 04
32
3.6.5 Cash/Deposit Ratio
This ratio shows that the cash is enough for payment of current liabilities or not.
It is calculated as
Or
=Cash/Total Deposit
Table NO. 05
Table NO. 06
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Total 45.40% 61.69%
This ratio measure the firms profitability of sales/ interest earned after taking account of
Net profit margin ration= Net Profit after taxes / interest earned *100
Table NO. 07
Table NO. 08
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Interest/markup earned*100 Total asset
Table NO. 09
This ratio show that how much efficiently the bank advances the deposits of their customer
Table NO. 10
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CHAPTER 04
4 My Internship Responsibilities
4.1 RESPONSIBILITIES
Being a part of any successful organization, a better experience can be learnt. During my
JS Bank Limited, one of the largest private banks in the country has been given an Islamic
Banking Branch license by the State Bank of Pakistan on December 16, 2006. JS .gives
full advantage to their workers and employees; the main focus of their workers are to
attract the customers and how to increase their trust towards the services which are
provided by the bank, mostly when they take work from an internee they give them the
full chance and support and encouragement to be as an employee. They take work from
their internee in a full friendly environment and with upmost respect as they were one of
4.2 Departments of JS
Cash department
Deposit department
Clearing department
Account department
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4.2.1 Cash department
This is sensitive department of the branch. None of the other person is allowed to enter in
the places of cash department. This department deals in cash deposits and payments. Cash
department is performing its functions/duties manually. For payments and receipts, it has
to maintain certain sheets, books of accounts and various ledgers, which are as follow:
Token register
Transaction ledger
Pay-In-Slip record
Roles of cash are one of the most important functions of the JS Bank. It is of extreme
necessity that the cashiers and officers as well as other staffs of the bank should know this
very well. Our main balance, Safe custody of cash, Custody of keys/Duplicate keys,
Maintenance of Vault book, Sorting of Notes and coins, Security measures, Irregularities
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4.2.2 Deposit Department
Deposits act as a backbone of bank. It is the lifeline of every bank. These deposits are
source of generating incomes for the bank and for the general public to meet the financial
needs. The supply of money in circulation is also affected by the amount of loans and
advances issued by the bank. The primary economic function of the commercial bank is to
receive the surplus saving money from the general public, individuals, firm, institutions,
public houses and companies and to pay the cheques drawn upon the bank.
The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest,
the difference between the lending and accepting rate is the source of income for the bank.
Keeping in view the above factors JS offers the following types of accounts:
Current Account
Saving Account
Fixed Account
The classification of the deposits in to current, saving and fixed accounts is mainly on the
basis of duration and purpose for which the account is maintained at a bank.
Current Account
Current account is running account because, customer can withdraw deposited amount at
any time, whenever he feels need. The customer can withdraw without any prior notice to
the bank.
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The bank has to pay the cheque provided within the limits of the account balance. The
main thing is that bank does not pay any kind of interest on current account.
The bank cannot invest the deposited amount under current account heading, because of
the fear of withdrawal. Bank has to keep with it a higher reserve ratio to meet the needs of
Saving Account
Saving Account is an important source of funds for the bank. The purpose of this account
is to attract the small saving of the general public. Normally workers, schoolboys and
employees of the organizations use the saving account facility. JS also provides this
facility to the general public against a certain rate of interest. The new name of this
money (above 15000), he will have to give a notice of 7 to 14 days in writing to the bank.
Saving account deposits provide a chance to the bank to invest safely, because customer
Fixed Account
Fixed or Time deposits accounts are the major source of the capital for investment for the
bank and cannot be withdrawn as in case of the current account. The amount deposited can
be received back after a certain specified period of time. The rate of interest paid on fixed
deposits is normally higher than saving deposits. The rate of interest also varies due to
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time period. The rate of interest also varies due to time period. After the expiry of the
period the customer presents the receipt to bank and receives the amount in cash or bank
added in the customer accounts as agreed between the bank and the customer.
This department welcomes the cheques and other negotiable instruments drawn upon local
branches of other banks. State Bank of Pakistan has a clearinghouse, in which the bank
representative brings cheques and other Institutions and mutual claims of each buff set and
a settlement made by the payment. Clearing system is helpful for both the customers and
It is supposed that accounts department is the pillar of the bank. It plays a vital role in
performing its function manually. Different books of accounts relating with other
departments are maintained here. With the help of these books of accounts, accountant
prepares monthly, quarterly, semi- annually and yearly financial statements. The working
in accounts department mainly depends upon voucher system. For each and every
transaction-taking place in the bank vouchers are prepared and through these voucher
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To update general ledger.
operational staff.
There is also over staffing in JS moreover inefficient individuals are in credit card
department.
Experienced Habibians are neither satisfied by the privatization of bank nor were they
things during my internship. told me about bank and working environment of bank.
I placed at cash department for first three weeks there I learned how to separate the coins,
notes and daily vouchers of the bank. I also learned how to deal with the customers. Cash
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department is very sensitive as no other person can enter in the premises of cash
department. Then I was shifted to account opening department where I worked for 6
weeks I taught a lot of things in that department how to deal with customers. Working in
account opening department was very learning stage for me when a person came into the
bank for opening an account firstly I took his/her data which contains name of customer,
signature, CNIC, contact number. In this department I observed that most of customers
focus was to open the current account. In bank my main responsibility was to maintain the
banks discipline and follow the orders of my supervisor and rules and regulations
CHAPTER 5
During the internship period at JS I have come across certain aspects which need some
attention and improvement. I would like to give a few suggestions and recommendations
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JS has computerized its accounts but it has not computerized its daily counter services..
Computerization of all the branches may be a difficult task, but it could result in a lot of
saving for the bank. JS could save time and also money spend on daily stationary by
computerizing all its work but still they prefer to do manual work as with the
computerized one which cause them extra money. I recommend them to shift all their
In big cities and especially the branches located in commercial areas should extend
evening banking services to its clients as safe keeping of money after close of business
In these days many branches of various banks have been looted. In order to avoid any such
incidence, proper safeguarding measures should be taken to protect the life and property.
promotion is only based on seniority. As a result, employees do not try to work hard. In
order to increase the productivity and performance of the employees Bank should raise
reward system, so that employees can accomplish their objects successfully and discharge
their duties efficiently. In many cases officers are drawing maximum of their, pay scale for
year together. In such cases timely promotions should be made to create enthusiasm
amongst its employees. It could enhance the job satisfaction in the employees so that they
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5.1.5 Effective Chequing System
payment in hard cash rather than in the form of a cheque. This is mainly due to the fact
that in Pakistan collection of cheques takes time. In addition cheques are dishonored
mainly due to the reason there are insufficient fund in the drawers accounts. If the
collection of cheque procedure is speeded up and the account holders are made bound by
bank to write cheques only when they have funds in their accounts, an effective chequing
Unfortunately most of the loans are being given on the basis of political background rather
than on merit. Cash loans are later written off politically resulting in a heavy amount of
losses for the bank. It is suggested that the loan sanctioning body of the bank must consist
technical people. There should be no pressure from the government regarding sanctioning
and writing off of the loans. The loans should be only given only on merit basis so that the
people who really need loans to start a business could get it by the bank and employment
5.1.7 Professionalism
overburdened due to the shortage of staff. The bank should create new jobs to have
competent and professional persons for various posts, so increase in the number of staff
can raise the efficiency of the Bank. One person is doing two different jobs at a time which
cause delay sometimes in very important work. This causes a lot of burden for the single
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employee doing different tasks which leads towards the dis satisfaction of employees who
5.2 CONCLUSION
JS Bank Limited is concentrated on achieving its financial targets; JS Bank did not lose
sight of the future and its challenges. It continue to invest in its man power training and
up-gradation of I.T. infrastructure. Although in the short run this will result in an increase
in its administrative and capital expenditure but in the long run will increase its efficiency
in terms of real cost reduction and increased product offering. In future it will invest
heavily into I.T to bring further improvement in its service standards and also to reduce the
transaction costs.JS Bank future predicts expansion in terms of geography, trade and
products. JS Banks management is setting our eyes towards excelling amongst banks of
the South Asian Region and would like to improve even further on its rankings both
domestically and regionally. Its investment in technology and human resource will
continue to prepare them for the future challenges. Customer will be the center of its focus
to become the Bank of choice for customers. JS Bank will continue to redesign
References
JS Bank
www.jsbl.com
Products
www.jsblproducts.com
Online Banking
www.jsblonline.com
Financial Statements
www.jsbl.com/financial_account.php
Newsletter of JS Bank Limited (August 2012)
Schedule of Bank Charges (July 2012)
Personal Observations
Banking Currency & Finance by Prof. Saeed Nasir
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Banking Practice Law and Management by Asrar H. S1ddiqui 7th edition
JS bank Limited 2009, Personnel Manual.
Others
www.google.com.pk
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