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INTERNSHIP REPORT

The Bank of Punjab, Dina

Submitted to:
Syed Zagham Abbas
Incharge of Business Administration

Submitted by: Zarish Najam


Roll no: BBA-F13-25
Session: 2013-2017
Specialization: Finance
Submission date: 24th April 2017

Department of Business Administration, Jhelum Campus


UNIVERSITY OF THE PUNJAB

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Certificate of Approval

It is to certify that I have read Bank of Punjab Internship Report by zarish najam, Roll no
bba.f13.25 and in my opinion this work meets the criteria for approving the internship
report submitted in a partial fulfillment of the requirement for BBA at department of
business administration the University of the Punjab, Jhelum campus.

Internship Coordinator
Syed Zagham Abbas
Incharge,
Department of Business Administration
University of the Punjab Jhelum Campus, Jhelum
Administrator
Dr.Mohammad Mudasar Ghafoor
University of the Punjab Jhelum Campus,

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LETTER OF TRANSMITTAL
24/04/2017
Mr. Syed Zagham Abbas
Lecturer, Business Administration
University of the Punjab, Jhelum Campus
Subject: Submission of Internship Report

Respected Sir,

This letter is regarding the submission of my internship report, which is a mandatory


requirement for my degree, entitled The Bank of Punjab, Dina
I was in Bank of Punjab for the 8 weeks (July 18, 2016 to September19, 2016), during my
internship period. This report reflects the financial, operational and the business model of
Bank of Punjab. I tried to use my all efforts to provide as much as information from different
sources.
I would like to thank you for your supervision and also helping me throughout my internship
program for the completion of my BBA degree. This internship program has given me the
opportunity to know about this organization and to explore one of the latest and
unexplored areas of business in context of a developing country like Pakistan. It was a great
experience to working in an organization like Bank of Punjab. This gave me an opportunity
to learn and understand the corporate culture which will help me for my future professional
career. I have also found the experience of working with this report both challenging and
interesting. I hope this report will meet your expectation and standard. I would be a great
pleasure if this report can serve its purposes. I will be happy to provide you any kind of
elucidation regarding this report.
Sincerely,
Zarish najam
BBA (Hons), Session 2013-2017
ID: BBA-F13-25

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ACKNOWLEDGEMENT
I am very thankful to Allah Almighty who gave me the courage to complete this complex
task and to my respectable parents whose prayers always helped me to accomplish my
goals.
I am really thankful to all my respected teacher, and my Incharge Syed Zagham Abbas for
giving me opportunity, courage and continuous guidance.
Besides, there are many people who supported me in formulation of this report and without
the support of them I could never be able to complete this report successfully. In this
respect I am very thank full to Mr. Malik Amjad (Branch Manager), Mr. Khurram Shehzad
(Operations Manager) and the qualified staff members of The Bank of Punjab who
cooperated with me with their guidance at each step of my internship. They have provided
me a lot of important information and knowledge about the banking operations in a very
short period of time.
Finally, I offer my sincerest thanks to all my Teachers who always provide me their endless
cooperation.

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Dedication

I would like to dedicate this achievement to my parents who are the real motivation and
inspiration for me and to my respected teacher Syed Zagham Abbas whose guidance
always help me.

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Executive Summary
I started my internship in the Bank of Punjab GT Road Branch Dina. There are five
departments in the branch, and I worked as an interne in that branch. For the first two
weeks I worked in the remittance department under the supervision of Mr. sufiyan ahmed
and Mr. zulaqarnain and I learned in detail about dealing with remittances and in the third
and fourth week voucher sorting, receipts and payments, filling deposit slips, online transfer
and in the last two week cheque posting, cheque book acceptance, issuance to the
customer and many other related jobs. It is one of the most interesting works I have learned
in the bank. Vouchers are properly bind sealed, and checking by the manager. I
have checked the following things:

The check should not be post-dated/anti-dated.


Deal with remittance
Amount in words and figures tallies.
Cash paid stamps (with dates) are duly affixed in case of cash cheques
and in case of clearing stamps is affixed.
Cutting/over writings are duly authenticated by the account holder, etc

More forward in the third and fourth week I work in the accounting opening department
and learn all the basic and some detail knowledge about how to open the account, various
types of account, documentation, form filling and stamping. This is the major area of my
interest. In fifth and sixth week of my internship I work in the remittance department and
deal with remittance, demand draft and pay order preparation. In the second last week I
work in the marketing department and in last week I work in clearing department.

My working hours were from 9 AM to 5 PM, 5 days in a week.

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Objectives of Studying the Organization
Major objectives to study this organization
To get awareness about the business development & financial techniques.
Comparison of the Current Assets, Liabilities and Equity of organization with previous
year to measure its performance.
To know customer dealing.
Policies followed by the organization enforced through laws of SBP.
Study the facilities provided by the organization to common public in various forms.
To study the terms & conditions for fringe benefits provided to employees of the
organization at the age of superannuation.
To get BBA (Bachelor in Business Administration) degree.
To apply theoretical concepts in practical aspects.

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Contents
Chapter 1

1. introduction of the Organization:............................................................................................ 2

1.1. History Of Banking In Pakistan: ........................................................................................ 2

1.2. Nationalization of Banks: ................................................................................................. 3

1.3. General Functions of a Commercial Bank: ....................................................................... 7

1.3.1. Accepting Deposits: ................................................... Error! Bookmark not defined.

1.3.2. Demand Deposits or Current Deposits: ..................... Error! Bookmark not defined.

1.3.3. Fixed Deposits: ........................................................... Error! Bookmark not defined.

1.3.4. Saving Deposits: ......................................................... Error! Bookmark not defined.

1.3.5. Advancing Loans: ....................................................... Error! Bookmark not defined.

1.3.6. Discounting Of Bill: ..................................................... Error! Bookmark not defined.

1.3.7. Cheap Medium Of Exchange:..................................... Error! Bookmark not defined.

1.3.8. Transfer Of Money: .................................................... Error! Bookmark not defined.

1.3.9. Custodian Of Precious Articles: .................................. Error! Bookmark not defined.

1.3.10. Agency Services:......................................................... Error! Bookmark not defined.

1.3.11. Investment: ................................................................ Error! Bookmark not defined.

1.3.12. Creation Of Credit: ..................................................... Error! Bookmark not defined.

1.3.13. Facilitating Trade Activities ........................................ Error! Bookmark not defined.

1.3.14. Purchase And Sale Of Securities: ............................... Error! Bookmark not defined.

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1.3.15. Acting As A Trustee: ................................................... Error! Bookmark not defined.

1.4.ROLL OF COMMERCIAL BANK IN THE ECONOMY DEVELOPMENT OF PAKISTAN:Error! Bookmark not de

1.4.1. Saving Mobilization: ................................................... Error! Bookmark not defined.

1.4.2. Financing Of Development Projects: ......................... Error! Bookmark not defined.

1.4.3. Enhancing Trade Activities: ........................................ Error! Bookmark not defined.

1.4.4. Creating Climate For Capital Formation: ................... Error! Bookmark not defined.

1.4.5. Help Of State Bank Of Pakistan In Achieving Monetary Publishes:Error! Bookmark not defined

1.4.6. Assist In Planned Development ................................. Error! Bookmark not defined.

1.4.7. Profit Sharing Scheme: ............................................... Error! Bookmark not defined.

2. History & Nature of BOP:......................................................................................................... 3

2.1. Scope of the Bank:............................................................. Error! Bookmark not defined.

2.2. Management of the Bank: ............................................................................................... 4

2.3. EMBLEM: .......................................................................................................................... 5

2.4. Present status of the organization in business network: ................................................. 5

2.4.1. Business Volume: ...................................................................................................... 6

2.5. SUCCESS AND AWARDS: .................................................... Error! Bookmark not defined.

2.6. VISION STATEMENT:......................................................................................................... 7

2.7. MISSION STATEMENT:...................................................................................................... 7

2.8. CORE VALUES: .................................................................................................................. 7

2.9. OBJECTIVES:...................................................................................................................... 8

2.10. GOALS (Financial Goals, Marketing Goals, HR goals) ................................................... 9

2.10.1. Financial Goals .......................................................................................................... 9

2.10.2. Marketing Goals ........................................................................................................ 9

2.10.3. HR goals..................................................................................................................... 9

2.11. Passion Reborn ........................................................................................................... 10

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2.12. Credit rating: .................................................................. Error! Bookmark not defined.

2.13. Strategies of the Organization: ................................................................................... 10

2.13.1. Community Marketing ............................................................................................ 10

2.13.2. Product Bundling..................................................................................................... 10

2.13.3. Pre-Approved Products........................................................................................... 10

2.13.4. Teller Referrals ........................................................................................................ 10

2.13.5. Premier Services ..................................................................................................... 11

2.13.6. Competitive Strategies............................................................................................ 11

2.14. Corporate Social Responsibility: ................................................................................. 11

2.14.1. Social Development Through Banking Services: ..................................................... 11

2.14.2. Disbursement Of Financial Assistance To Flood Victims:Error! Bookmark not defined.

2.14.3. Culture, Sports And Heritage: ................................................................................. 12

2.14.4. Environment Protection And Energy Conservation: ............................................... 12

2.14.5. Special Care For Special Persons: ........................................................................... 12

3. Companies Management System: ......................................................................................... 14

3.1. Organizational Chart of Governing Body ....................................................................... 14

3.2. Board of Directors .......................................................................................................... 15

3.3. Typical Structure of a BOP Branch ................................................................................. 15

3.4. Management Of The Bank: ............................................................................................ 16

3.4.1. Members of Management: ..................................................................................... 16

3.5. Divisions and Departments: ........................................................................................... 17

4. Bank of Punjab Branch Dina: ................................................................................................. 17

4.1. Branch management staff Included: .............................................................................. 18

4.2. BOP Branch Dina Hierarchy ............................................................................................ 19

4.3. Information regarding various departments personnel: . Error! Bookmark not defined.

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Operation Manager ............................................................. Error! Bookmark not defined.

Account Officer ..................................................................... Error! Bookmark not defined.

Remittance Officer: ............................................................. Error! Bookmark not defined.

Cash Department ................................................................. Error! Bookmark not defined.

5. Career with BOP ....................................................................... Error! Bookmark not defined.

6. Policy formulation process-meetings, how frequent: ........................................................... 28

6.1. Policies at Bank:................................................................. Error! Bookmark not defined.

6.1.1. Deposit Policies: ......................................................... Error! Bookmark not defined.

6.1.2. Investment Policies .................................................... Error! Bookmark not defined.

6.1.3. Advances/Credit Policies............................................ Error! Bookmark not defined.

6.1.4. Advances Against Immovable Property: .................... Error! Bookmark not defined.

6.1.5. Agriculture Schemes: ................................................. Error! Bookmark not defined.

6.1.6. Business Promotion Finance Schemes: ..................... Error! Bookmark not defined.

6.1.7. Training and development Policies ............................ Error! Bookmark not defined.

6.1.8. Growth Policy ............................................................. Error! Bookmark not defined.

6.1.9. Consumer-Banking Policies ........................................ Error! Bookmark not defined.

6.1.10. Remittance Policies .................................................... Error! Bookmark not defined.

6.1.11. Accounting policies .................................................... Error! Bookmark not defined.

6.1.12. Marketing Policy: ....................................................... Error! Bookmark not defined.

6.1.13. Job Satisfaction .......................................................... Error! Bookmark not defined.

6.1.14. Quality assurance services: ........................................ Error! Bookmark not defined.

7. Sources of Bank: ....................................................................... Error! Bookmark not defined.

Number of Employees .................................................................. Error! Bookmark not defined.

Currently 4000 employees are working in bank of Punjab.89% are male and 11% are
women. The Bank has been divided into seven regions each consisting of number of
branches. ...................................................................................... Error! Bookmark not defined.

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8. Major customers of BOP........................................................... Error! Bookmark not defined.

9. Administration & Management Style ....................................... Error! Bookmark not defined.

9.1. Administrative style ....................................................................................................... 19

9.2. Management Style ......................................................................................................... 19

9.3. Managerial level ............................................................................................................. 20

9.4. Department level ........................................................................................................... 20

9.5. Operational/Staff level ................................................................................................... 20

9.6. Specialization of the Organization ................................................................................. 20

9.7. Chain of command of HR ............................................................................................... 20

9.8. Division of Labor ............................................................................................................. 21

9.9. Span of Control............................................................................................................... 21

9.10. Communication .......................................................................................................... 21

9.11. Impact of different styles on the morale and efficiently of workers ......................... 21

9.12. Motivation: ................................................................................................................. 21

9.13. Morale and Productivity ............................................................................................. 21

9.14. Job efficiency and satisfaction: ................................................................................... 22

10. Situational Analysis ............................................................................................................ 22

10.1. SWOT Analysis ............................................................................................................ 22

10.1.1. Strengths: ................................................................................................................ 23

10.1.2. Weakness: ............................................................................................................... 23

10.1.3. Opportunity: ........................................................................................................... 24

10.1.4. Threats: ................................................................................................................... 24

10.2. PEST Analysis .............................................................................................................. 25

10.2.1. Political-Legal: ......................................................................................................... 25

10.2.2. Economic: ................................................................................................................ 25

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10.2.3. Socio cultural: ......................................................................................................... 25

10.2.4. Technological: ......................................................................................................... 26

11. Departments of Bank of Punjab............................................ Error! Bookmark not defined.

11.1. Operations Control Department ................................... Error! Bookmark not defined.

11.2. Account Opening Department Policies & Procedure .... Error! Bookmark not defined.

11.2.1. Major task of account opening department:............. Error! Bookmark not defined.

11.2.2. Account closing: ......................................................... Error! Bookmark not defined.

11.3. Deposit Department: ..................................................... Error! Bookmark not defined.

11.3.1. Current Deposit .......................................................... Error! Bookmark not defined.

11.3.2. Saving Deposit ............................................................ Error! Bookmark not defined.

11.3.3. Short Notice Term Deposits ....................................... Error! Bookmark not defined.

11.3.4. Call Deposit ................................................................ Error! Bookmark not defined.

11.3.5. Term Deposit Receipts ............................................... Error! Bookmark not defined.

11.4. Advances/Credit Department Policies .......................... Error! Bookmark not defined.

11.4.1. Running Finance ......................................................... Error! Bookmark not defined.

11.4.2. Demand Finance ........................................................ Error! Bookmark not defined.

11.5. Agriculture Credit Department:..................................... Error! Bookmark not defined.

11.6. Cash Department ........................................................... Error! Bookmark not defined.

11.7. Clearings Department .................................................... Error! Bookmark not defined.

11.7.1. Outward Clearing: ...................................................... Error! Bookmark not defined.

11.7.2. Inward Clearing: ......................................................... Error! Bookmark not defined.

11.8. Account Department ..................................................... Error! Bookmark not defined.

11.8.1. Manual Functions Of Accounts Department ............. Error! Bookmark not defined.

11.8.2. Computerized Functions Of Accounts Department... Error! Bookmark not defined.

11.9. Remittance Department ................................................ Error! Bookmark not defined.

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11.9.1. Demand Draft (DD): ................................................... Error! Bookmark not defined.

11.9.2. Mail Transfer (MT): .................................................... Error! Bookmark not defined.

11.9.3. Telegraphic Transfer (TT): .......................................... Error! Bookmark not defined.

11.9.4. Pay Order (PO): .......................................................... Error! Bookmark not defined.

11.9.5. Foreign Remittance .................................................... Error! Bookmark not defined.

11.10. Marketing Department .................................................. Error! Bookmark not defined.

11.11. Retail Finance Division: .................................................. Error! Bookmark not defined.

12. Services: ................................................................................ Error! Bookmark not defined.

Credit Facility ..................................................................... Error! Bookmark not defined.

Stop Payment Instructions ............................................. Error! Bookmark not defined.

12.1. Automated Teller Machine ......................................................................................... 29

12.2. Online Banking ............................................................................................................ 29

12.3. Demand Draft ............................................................................................................. 29

12.4. Letter Of Credit ........................................................................................................... 30

12.5. Pay Order .................................................................................................................... 30

12.6. Mail Transfer............................................................................................................... 30

12.7. Agricultural Financing: ................................................................................................ 30

12.8. E-Banking: ................................................................................................................... 30

12.9. Utility Bills: .................................................................................................................. 30

12.10. Consumer Financing: ..................................................... Error! Bookmark not defined.

12.11. Agriculture Financing: ................................................................................................. 31

12.12. Debit Card ................................................................................................................... 31

12.13. Credit Facility: ................................................................ Error! Bookmark not defined.

12.14. Stop Payment Instructions: ........................................... Error! Bookmark not defined.

12.15. Drafts, Telephonic Transfers, Pay Orders: ..................... Error! Bookmark not defined.

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12.16. Quality assurance services: ........................................... Error! Bookmark not defined.

12.17. Lockers Facility:.............................................................. Error! Bookmark not defined.

13. Company Marketing Mix ...................................................... Error! Bookmark not defined.

13.1. 3C Analysis ................................................................................................................. 42

13.2. Michael Porter Five Force Analysis............................................................................. 44

13.2.1. Entry barriers .......................................................................................................... 44

13.2.2. Rivalry among the existing competitor ................................................................... 45

13.2.3. Bargaining power of suppliers ................................................................................ 45

13.2.4. Bargaining power of the customer ......................................................................... 45

13.2.5. Threat from substitutes .......................................................................................... 45

14. Marketing Mix .................................................................................................................... 45

15. Human Resources Department Activities: ......................................................................... 47

16. Financial Analysis: .............................................................................................................. 51

16.1. Vertical Analysis: ......................................................................................................... 51

16.2. Horizontal analysis:........................................................ Error! Bookmark not defined.

16.3. RATIO ANALYSIS .......................................................................................................... 62

16.3.1. Liquidity Ratios ........................................................................................................ 62

16.3.2. Leverage Ratios ....................................................................................................... 63

16.3.3. Profitability Ratios ................................................................................................... 66

16.3.4. Activity Ratios: ........................................................................................................ 67

17. Training program ............................................................................................................... 73

18. Recommendations: ............................................................... Error! Bookmark not defined.

18.1. Marketing Policy ............................................................ Error! Bookmark not defined.

18.2. Complaints with Customers: ...................................................................................... 71

18.3. Organizational Commitment: ..................................................................................... 71

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18.4. Improper Distribution of Work: .................................................................................. 71

18.5. Staff Relationship........................................................................................................ 71

18.6. Link with the Head Quarter ........................................................................................ 72

19. Conclusion: ......................................................................................................................... 72

20. Daily Activities done by me in the organization ................................................................ 73

21. References: ........................................................................................................................ 80

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Part 1

1
Introduction of the Organization:

The Bank of Punjab is a Pakistani bank headquartered at BOP Tower, Main Bouleveard,
Gulberg, and Lahore in Pakistan. It serves Pakistan and functions as an international bank
and is one of the prominent financial institutions of the country holding AA ratings from
PACRA.

Professor Berton said:

Banks are the guardian & distributor of money

History and present status of Banking in Pakistan:


Pakistan came into being on 14th of August 1947. Sufficient banking services were available
in the areas forming Pakistan. Out of the total branches of nearly 3,500 in the undivided
India, as many as about 1,500 branches were existed in these areas.It was agreed between
the two countries that reserve bank of India shall continue to function in Pakistan territory
until 30th September, 1948 and that Indian notes would continue to be legal tender at
Pakistan until 30th September, 1948. Unfortunately, relationship between the two countries
became most strained immediately after independence; Banking was mostly in the lands oh
Hindus who immediately started transferring their assets and offices into India. As a result
most of banks in Pakistan were closed down and even those which were open were not
doing any effective business.The number of banking office in Pakistan came down to about
200 on 30th June 1948. Branches of some European banks were also functioning in a limited
manner, financing in export of crops, and their number was limited to about 20.It was only
the Habib Bank, which transferred its office from Bombay to Karachi. Austral Asia Bank was
another bank which was in existence in Pakistan territory at the time of independence.
Despites of best efforts on the part of Government of Pakistan, no heady way could be
made on this behalf and reserve bank of India was in no mood to help the new country.
Imperial Bank of India, agent of the reserve bank of India also started closing down its
branches in Pakistan.

Reserve Bank also refused to advance money to Pakistan to make essential payments such
as salaries etc also Pakistans share of Rs.75 billion in cash balance was withheld by bank,
causing hardships to the new born state. In view of these hopeless state affairs it was

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agreed between the two countries that Reserve Bank would serve as the monetary
authority in Pakistan only up to 30th June 1948.

Nationalization of Banks:
The principle of nationalization of banks is to stream line the operation of commercial banks
in such a way that it may be conductive to the development activities in process in
the country.Since the commercial banks were owned and controlled by big
business groups of the country it was feared that these banks would not
maintain uniformity in their operational and would be instrumental to
inflationary pressure. However, the considerations behind nationalization are

1. To form uniformity in the policy of the commercial banks so they may serve the best
national interest.
2. To make the operation of commercial banks highly sensitive and responsive to the
policy of the government relation to financial matters.
3. To make the credit policy of the commercial banks more purpose full
and effective especially in the development of economic sectors of the country.
It acts as an agent of the State Bank of Pakistan.
4. To eliminate unhealthy and uneconomic competition among commercial banks.

History & Nature of BOP:

The Bank of Punjab started functioning with the inauguration of its first branch of 7-Egerton
Road, Lahore on November 15, 1989. The architect of the bank Mr. Nawaz Sharif then, the
Chief Minister of Punjab, performed the inauguration.
In Pakistan, over long periods of time the gap in saving and investment and balance of trade
deficit has posed serious threat to the target levels of growth The ailments related to the
budgetary deficit and public debt, both foreign and domestic are in addition. Interestingly
even such adverse circumstances growth of real sector during the preceding year registered
a favorable change, which speaks of hidden potential and strength of economy.
The emergence of new bank on the national scene in the early 1990s has done two
important services to the nation.

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The Bank of Punjab is working as a programmed commercial bank with a setup of almost 284
branches at all over main locations in the Punjab.BOP offers all types of banking services such
as deposits in Local currency and client foreign currency,remittances,and advances to business,
trade, industry and agriculture. The Bank of Punjab has infact entered a new age of technology
to the nation under skillful and specialized hands of its management. The bank of Punjab plays
an essential role in the economy through enlistment of local resources, promoting savings and
providing funds for investments.
Decision making at BOP is decentralized due to its operations at different regions so they all are
doing their own plannings but all the vital decisions must be approved by higher management at
Head office directors at bop have worked with the best organization in the world. So they have
put in a cognisant effort to inculcate a tradition which has centralization only to the need where it
requires. BOP decentralized system motivates the employees a lot as they get the sensation of
being a part of organizational decision s.There are 8 major divisions in BOP which includes Audit
and Inspection Recovery Division responsible for checking and reporting on the management
compliance with the policies and directives. Finance Division Prepare the policies regarding the
sanctioning loan and define credit limits against specified securities International division which is
providing important services to the bank regarding the matters of International Trade, Import,
Export Letters of Credit, Travelers cheque etc.Credit Division which is concerned with the
operational working in general banking, which is concerned with the routine working of the bank
Business Development Division It promotes the bank basis i.e. deposits and work for the overall
development of the bank and Human Resource Division which includes recruitment, staff training
and evaluation Operations Division.
Bank of Punjab believes that people are their most important assets so one of the strategic
objectives of organization is to hire best individual for the organization thats why recruitment
department have stressed on the quality of people. BOP recruitment procedure includes
screening of CV and evaluation based on fixed criteria. After selection the employees serves
probation period of three months after its completion the board evaluates the employees and
grant him the letter of confirmation.
In comparison to its competitors including National Bank of Pakistan, Habib Bank Limited, Bank
Alfalah, Muslim Commercial Bank, Allied Bank. United bank Limited it has low market share and
growth percentage.
njab performs all such functions as are attributed to commercial banking institution both in
the area of resource mobilization, loans, and investment. The Bank is thus providing all type
of advances to business, trade, and industry on seasonal and annual basis, and is ensuring,
through the prudent policy, the safety and protection of its loan portfolios, as the resources
base of the bank expands, project financing will also be brought into its fold.

Management of the Bank:


At the level of Decision-making and implementation, senior management of the bank is
drawn from highly accomplished bankers with rich experience in the banking profession
both domestic and international.The entire responsibilities of policy formulation and
management have been placed, under the law, with the Board of Director. Furthermore it
will be heartening to know that Mr. Nawaz Sharif, during his chief Minister ship of the
province of Punjab issued special instructions to the political and executives echelons not to

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interfere in The Bank of Punjab, thereby ousting the possibility any pressure which may be
put on the management of the bank in respect of recruitment of staff or provision of credit.
These instructions have become an essential part of the culture of the bank.

EMBLEM:
The sun rising over the five wavy lines symbolizes the dawn of new era of progress and
prosperity for the land of five rivers and hence for Pakistan. Furthermore the main
objectives of the inclusion of cotton flowers and the spikes of wheat in the emblem is firstly
to represent the,Fact that the economy of the Punjab stands on its agriculture produces
especially cotton and wheat and secondly to highlight the emphasis which the bank is to
place on development of agro-based industry.

Present status of the organization in business network:


Different business have their separate nature, the nature of the organization where I have
done the internship is banking sector (BOP). Banking sector has a vital role economy of any
country. And the banking sectors are included in the major types of business. It is impossible
that the economy of a country show prosperity with out to running the banking sectors. The
BOP is under the power of Govt. same like as National bank. And the 51 % shares of BOP are
governing by the Govt. Being a service industry of Pakistan, BOP (commercial bank) has
involving the different nature of functions like borrowing the money, lending and advancing
of money dealing in bills of exchange, promissory notes, drafts, bills of lading, receipts,
warrants, making, accepting, discounting buying, selling, collecting Debentures, certificates
and the drawing etc. Rapidly Expanding Network of Branches Alhamdulillah, The Bank of
Punjab is pleased to announce the establishment of 37 Taqwa Islamic Banking branches. As
we continue to grow our Taqwa Islamic Banking network, we remain committed to our
ideals of excellence and service quality across the Bank of Punjab network.The Bank of
Punjab is also dealing in the buying, selling of foreign exchange including Foreign bank
notes, the acquiring, holding, issuing on commission, underwriting And dealing in stocks,
funds, shares, debentures, the negotiating of loans and Advances, the receiving of all kinds
of bonds, valuables on deposit or for safe Custody. The providing of safe deposit vaults the
collecting, and transmitting of money and securities in these days the BOP is a competent
bank and striving to fulfill the customized products. And it is providing the wide variety like

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ATM and specifically in Agriculture scheme like Kissan dost tractor scheme, Kissan dost
agricultural scheme and second hand tractor lease finance scheme etc.The Bank has started
Islamic banking operations in the year ended December 31, 2013. As at close of the
December 31, 2014, 37 Islamic banking branches were operating.

Business Volume:
Assets(Current + Fixed) US$ 2.7 Billion PKR 164.7 Billion

Loans US$ 1.7 Billion PKR 103.7 Billion

Deposits US$ 2.3 Billion PKR 140.3 Billion

The Bank of Punjab has the privilege to discharge its responsibilities towards national
progress and prosperity. Within couple of years of its scheduling, the bank has not only
carved out for itself prominent niche in the main stream banking of the country but in
certain areas it has the distinction of taking the lead.In the short span of time the Bank has
been able to evolve as a distinct corporate culture of its owned-based policies, which are
realistic and are on highly professional footings.

Achievements of BOP

Excellence Award by the Central Board of Revenue:

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
recognition of he contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards:

Due to more development and growth in agricultural sector by the BOP, the Bank awarded
with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under 3rd Kissan
Time Awards year 2006.

Best Corporate Report Award:

6
The Annual Report of the Bank for the year 2005 won 5th position due to best and perfect
annual report so it Corporate Report Award" for the Financial sector, adjudicated jointly by
the Institute of Chartered Accountants of Pakistan and the Institute of Cost and
Management Accountants of Pakistan.

16th Bolan Excellence Award:

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in
2006.

Achievement Award:
5. The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
Achievement Award" 2006

VISION STATEMENT:

To be a customer focused bank with service excellence

MISSION STATEMENT:
To exceed the expectations of our stakeholder by leveraging our relationships with
government of Punjab and delivering complete range of professional situation with the focus
on program driven product and services in the agriculture and the middle tier markets
through a motivated team.

CORE VALUES:

Our Customers:

As our first priority

Profitability:

For the prosperity of our stakeholders that allows us to constantly invest, improve and
succeed

7
Corporate Social Responsibility:

To enrich the Lives of community where we operate

Recognition and Reward:

For the talented and high performing employees

Excellence:

In everything we do

Integrity:

In all our dealings

Respect:

For our customers and each other

OBJECTIVES:
The Bank of Punjab being a commercial bank performs all those function as are attributed to
such banking institutions both in the areas of resources mobilization and investment. It is
providing funds for commerce, trade, industry, and agriculture but its main emphasis is on
accelerated development of agro-based industry. So the main objective of the bank is to
channelize the resources into sectors, which have suffered from neglect. Other objectives
included.
To provide speedier services to the common man.
To provide the highest rate of return to the shareholders by achieving
good profitable growth.
To enter into financing contracts and to mobilize resources in local and in foreign
currencies consistent with the objects of the bank.

8
GOALS (Financial Goals, Marketing Goals, HR goals)

Financial Goals
Profitability for the prosperity of stakeholders that allows them to constantly invest,
improve and success.
To enter into financing contracts and to mobilize resources in local and now in
foreign currencies consistent with the objects of the bank.

Marketing Goals
Typically, clients marketing objectives include some or all of the following:

Build awareness

Grow market share

Launch new products or services

Target new customers

Enter new markets internationally or locally

Enhance customer relationships

Improve internal communications

Increase clientele

HR goals
Bank HR strives towards achieving excellence in the management of the Banks most
valuable assets are its people
recruit the best human resource from around the country, and developing them
continuously to become experienced and seasoned bankers. The main focus of the
Human Resources Department is to implement strategies and practices to develop
our employees.

9
Passion Reborn
Passion Reborn The Bank of Punjab has overcome formidable odds to rise and set new
goals for the future. Our hard work and sheer commitment has paid off and today the Bank
is poised to achieve new heights. The challenges are formidable but in the BOP the spirit is
to take these and convert them into opportunities.

Strategies of the Organization:

Community Marketing
Banks range in size and capabilities. Small banks may only have one or two branch offices
whereas large commercial banks may have thousands of branches across the nation.
Regardless of the size of the bank, each branch needs to tailor local marketing strategies to
serve the immediate community. Consumers bank in a place where they feel safe and
comfortable. This means tellers and account representatives who speak English as well as
any prominent language in the community. By having branch managers look at the local
community needs, the bank can attract a larger percentage of the target market.

Product Bundling
A successful strategy employed by all banks is product bundling, such as offering a free
checking account for those who open a savings account. Because this has become common
practice, successful strategies implement creative bundling solutions. An automatic home
line of credit with a mortgage refinance might be a solution when interest rates are low or
the community has a large percentage of consumers looking to consolidate debt.

Pre-Approved Products
Consumers are more likely to say yes to something when they already know they are
approved for it. Banks can review existing accounts to determine positive banking and credit
trends in customers. Those identified with positive trends and credit history is sent "pre-
approval" letters for credit cards, lines of credit or mortgages.

Teller Referrals
Bank tellers interact with the majority of the bank clientele. Tellers perform the day-to-day
transactions, such as cashing cheques, making deposits or transferring money. Successful

10
banks consistently train tellers to look for opportunities to cross-sell bank products and
refer customers to the right person. The teller may see a high savings balance and suggest a
higher -earning time certificate. Smart banks reward top referring tellers to entice them to
take the time to suggest a new product or service.

Premier Services
Premier services are designed to attract high net worth bank clientele. High net worth
clients often have different needs as well as expectations. By offering a select set of private
bankers to personally handle all transactions and account reviews, client trust increases.

Competitive Strategies
Value added services are provided.
Performance is better.
Welcome customer with smile Innovations in banking.

Corporate Social Responsibility:


The Bank of Punjab is fully aware of its obligations toward the society and acknowledges the
fact that the growth of any organization depends upon its contribution toward the uplift of
under privileged communities of society.Accordingly, the Bank takes pride in development
of programs specially designed and tailored to meet the requirement of under privileged
communities across the country. Besides focusing the areas of education, sports, art &
culture, health care and social welfare under its Corporate Social Responsibility (CSR)
initiatives, special emphasis is given on women empowerment through specially designed
products and services.
Key CSR Initiatives Taken By the Bank:
Social Development through Banking Services:
While expanding branch network and developing new products and services, every possible
effort has been made to expand the Banks outreach to un-banked areas of the country, to
enable easy access of state of the art banking products and services to the residents of
these areas. In order to achieve this end, several new branches have been opened in remote
areas of the country in year 2014 with full functionality of online connectivity and complete
range of products and services suitably tailored for them.

11
The easy access to banking services in under developed areas shall go a long way in
improving social life of the residents. Further, through specially designed credit lines of BOP,
Agriculture and SME sectors in these areas shall get much needed boost.

Culture, Sports and Heritage:


The Bank fully recognizes the importance of culture, sports and heritage in the social life of
the peoples.
Accordingly, Bank generously supports the activities promoting the culture, sports and
heritage in the country. Besides sponsoring different sports events across the country, the
Bank also extends financial support to the cultural events at the Regional levels.

Environment Protection and Energy Conservation:


The persistent energy crisis in the country has made it obligatory for every individual and
organization to play its role in preserving energy. Accordingly, every effort is being made to
keep energy consumption at barest minimum level and ensure effective utilization of day
light. Further, the generators are being used rationally to avoid pollution and help curtail
fuel consumption.The Bank also realizes the financing needs to help produce alternative
energy. Besides facilitating large scale projects, the Bank has introduced Solar Penal
financing scheme with an objective to reduce energy woes of common man and help
produce low cost environment friendly energy.

Special Care for Special Persons:


Besides offering personalized and priority services to the senior citizens, the Bank ensures
hazard free services to the special persons visiting the Bank. Separate counters have been
established for senior citizens in line with the directives of Government of Pakistan and
State Bank of Pakistan.

12
Unit # 2

13
Companies Management System:

The functional hierarchy represents the reporting order in the hierarchy of BOP. The
hierarchy has president and directors at top management level and corporate, commercial
head, consumer head, retail head at the middle level management of BOP. Below the
middle level management consists of regional general Manager and Regional Controller of
Operations. Any person in the hierarchy above the branch manager can be appointed as
RGM and controller operations.

Organizational Chart of Governing Body

Board of
Directors

President

Corporate Commercial Consumer


Retail Head
Head Head Head

Regional
Head

Branch
Manager

14
Board of Directors
Name Designation
Mr. Ghafoor Mirza Chairman
Mr. Naeemudin President & CEO
Muhammad jahanzeb khan Deputy CEO
Mr. yousuf khan Director
Khawaja farooq saeed Director
Syed maratib ali Director
Mr. syed Anwar Director
Umer saif Director
Umer saeed Director
Muhammad afzal bhatti Director
Muhammad amjad saqib Director
Mr. raza saeed Director

Typical Structure of a BOP Branch

Branch
Manager

Operational
Manager

Cash Cash Grade III Grade II Grade I


Officer Officer officer officer Officer

15
Management of the Bank:
At the level of decision- making and implementation, senior management of the bank is
drawn from highly accomplished bankers with rich experience in the banking profession
both domestic and international. The entire responsibilities of policy formulation and
management have been placed, under the law, with the Board of Director. Furthermore it
will be heartening to know that Mr. Nawaz Sharif, during his chief Minister ship of The
province of Punjab issued special instructions to the political and executives 'echelons not to
interfere in The Bank of Punjab, there by ousting the possibility any pressure which may be
put on the management of the bank in respect of recruitment of staff or provision of credit.
These instructions have become an essential part of the culture of the bank. The Bank of
Punjab being a commercial bank performs all those function as are attributed to such
banking institutions both in the areas of resources mobilization and investment. It is
providing funds for commerce, trade, industry, and agriculture but its main emphasis is on
accelerated development of agro-based industry.

Members of Management:
Naeemuddin Khan President & CEO
Khalid S. Tirmizey Deputy CEO
Mr. Nadeem Amir Chief Financial Officer.
Mr. Shahid Waqar Mahmood Group Head, Wholesale Banking-I
Mr. Taimur Afzal Group Head, Retail Finance
Mr. Mustafa Hamdani Group Head, Investment Banking
Mr. Irfanuddin Group Head, Operations
Mr. Ahmad Shah Durrani Group Head RBG
Mr. Moghis Rafiuddin Bokhari Group Head, Human Resource
Mr. Ijaz Ur Rehman Qureshi Chief Risk Officer
Mr. Javeed Iqbal Chief Information Officer
Mr. Waseem Majid Malik Head Legal
Mr. Nasir Ali Khan Group Head, Administration Support Group
Mr. AsadUllah Khan Acting Head Audit and RAR

16
Registered Office

BOP Tower, 10-B, Block-E-II, Main Boulevard, Gulberg-III, Lahore.

Website www.bop.com.pk

Divisions and Departments:


Divisions Departments

Administration Organization & methods


Operations Information & technology
Business Development Officers Training Institute
Credit Shares
Finance Law
Recovery Stationery
Audit & Inspection Planning, Research and Publications
Treasury

Headed by: Headed by:

General Manager Chief Manager

Regional
Chief

Branch

Network
17
Bank of Punjab Branch Dina:

For getting my internship done, I was directed by supervisor to choose anyone of the
organizations. So I select the Bank of Punjab Branch Dina for getting work experience
practically in a formal and well organized environment. The information about the relevant
branch is given below.

Branch Name Bank of Punjab(Dina )


Branch Code 0163
Address Bank of Punjab, G.T Road DINA.
Phone 0544-630204
City Dina
District Jhelum
Province Punjab

Branch management staff Included:


Branch Manager Mr. Malik Amjad Hussain
Operational Manager Mr. Khurram Shahzad
Account Officer Mr. sohail malik
Assistant Account Officer Mr. Adeel Siddique
Marketing Staff Mr. Sufyian Ahmad
Remittance Staff Mr. Zulqarnain Ali
Cash Officer Mr. Akram Choudhary
Cash officer Mr. Saud Ali

18
BOP Branch Dina Hierarchy

Malik Amjad
Hussain(Branch
Manager)

Khurram
Shahzad
(Operation
manager)

sohail Zulqarnain Ali Sufian Ahmad


Akram ch
malik(Account (Remittance (Marketing
Officer) (Cash officers)
Officer) Officer)

Adeel Siddique
(Assisttent
account Officer)

Administrative style

Management at BOP is focused towards maintaining the cooperative culture within the
organization and also with the clients of the bank. The way managers treat the employees is
unique. This is the reason why each and every employee is pretty much satisfied with the
job.

Management Style
Management must have to adopt some administrative style to get all the activities to be
done effectively and efficiently. As far as the management styles are concerned, there is
centralization. Management refers to the universal process of effectively and efficiently
getting activities completed with and through other people. It is a process by which certain
basic functions that are planning, organizing, leading and controlling are performed to
achieve the desired objectives of the organization.

19
Managerial level
Branch Manager is authoritative. The implementation of strategies and getting
all the activities to be done properly with an organized environment, unity of
command was the requirement of the time and administration. When he was
not present, I observed the environment of uncertainty and deregulation in the
bank to a little extent.

Department level
Operations of the department are assigned to the department heads.
Subordinates are consulted by the Department managers before asking the
solution of a problem from the Branch Manager. Thus, employees are satisfied.

Operational/Staff level
As employees are satisfied to the work assigned and authority structure, so
management at this level is obligatory to the decisions of the department heads
level.

Specialization of the Organization


o Finance department.
o Human resource department
o Marketing department
o Services department
o Advance department

Chain of command of HR
o President
o Chief Executive HR
o Senior Executive Vice President HR
o Vice President
o G.M HR
o Director
o Senior Manager

20
Division of Labor
The structure of the Bank of Punjab is divided into division and these divisions are further
divided into departments. This type of structure helps the management in controlling the
operations of the bank effectively. Each division is responsible for its respective duties.

Span of Control
Span of control among hierarchical structure is clearly defined. Each department reports to
the central department and then this central department reports to the head office.

Communication
Communication among the organizational departments is easy. Horizontal and vertical
communication among departments is very effective.

Impact of different styles on the morale and efficiently of workers


Management styles have a great impact on the overall working of an organization. The key
issues, which can arise due to strong authoritative actions by the management, can be of
the following nature:

o Absenteeism
o Irresponsible behavior
o Coordination
o Reporting time delays
o Turnover

Motivation:
The term motive implies action to satisfy a need. Motivation can be defined as a willingness
to expend energy to achieve a goal or a reward. The management styles adopted by the
bank affect greatly, and employees are motivated in order to enhance their performance
and achieve the derived goals.

Morale and Productivity


The employees of the bank possess high morale, and thus exhibit high productivity. The
employees are happy and are also productive workers. Job attitudes and morale are quite

21
positive for two reasons. Firstly employees gain social satisfaction from interactions at the
work place. Working conditions and supervision are good; secondly high morale results from
high motivation to produce. In other words we can say that management should put its eggs
in the basket that creates a high-motivated work force.

Job efficiency and satisfaction

Consequently the overall impact of the well-equipped management styled organization is


the job efficiency and job satisfaction. At BOP the employees are very much satisfied with
the job and the overall working conditions of the bank, so in due response, the bank is
enjoying high efficiency in managing the time delays in reporting and working operations.

Situational Analysis

SWOT Analysis
SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats
SWOT analysis is careful evaluation of an organizations internal strengths and weakness as
well as its environment opportunities and threats. SWOT analysis is a situational which
includes strengths, weaknesses, opportunities and threats that affect organizational
performance.

In SWOT analysis the best strategies accomplish an organizations mission by:

Exploiting an organizations opportunities and strength.


Neutralizing it threats.
Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context; managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to then
develop good strategies and exploit opportunities and strengths neutralize threats and
avoid weaknesses.

22
Strengths:

The bank of the Punjab is rated among top six banks in Pakistan, in perspective of
remittance business as compare other province banks
BOP is playing positive role in economic progress of country as compare to other
banks.
BOP is striving hard to satisfy its customers by formulating such policies which
maximize the shares value.
To meet the needs of customers BOP has a huge network of branches in commercial
area as well as in remote areas.
BOP has lack of staff members but its performance level is high because of its effective
job design.
In BOP Dina large number of business accounts and Governments accounts are being
opened.
Firstly BOP is Supported or funded by the Punjab Government, people have trust on it.
Staff of branch is friendly to its customers and with their colleges as well to keep the
healthy environment.
In Dina branch computerize system for all operation is being used which have
increased the performance.
Chief Minister self employment scheme for unemployed educated youth is also being
managed by BOP.
Good security system, diversification of investments, foreign reserves.

Weakness:
BOP has formulized a lot of products and services for its customers, even more than
other commercial banks, but any advertisement on electronic media has not been
seen.
In BOP employees are less trained about customer dealing as compare to private
banks. BOP is not conducting extensive training to their employees.
Biased selection of employees.

23
As each staff member performs many duties in one time so this capture extra time
which can slows down the performance.

In BOP Dina there is no trade and credit department. Customers of bank need to move
to district branch for credit issues.

Lack of proper internal controls is one of the major weaknesses of BOP. It is also
pointed by the auditor in his review.

Opportunity:
The BOP management have been improved by the new management, now there is
opportunity to considered adequate effectively implemented and monitored.
Due to huge revenue, BOP has opportunity to introduce new scheme related to
Consumers finance, in Retail banking, and in Agriculture loan scheme to obtained
maximum market share.
BOP has opportunity it is earning commission on Government Transaction.
BOP Trust and reliability due to supported by Punjab Government create opportunity
to increase the deposit and profitability through expanding their products and services
to the peoples.
Due to increasing in deposit BOP could increase its investment and financing in
banking sector.

Threats:

Inflation is big causes, Modern type of banking, these are the big threats for BOP, it
leads to reduce the deposit by reducing the consumers as well as working condition.
Political instability, changing or up and down in Politician parities also a big threat for
BOP, new candidate will come with new policies.
Modern marketing concept, efficient service adopt by the competitors are also threat
to BOP.
Muslim community dont like the consumers banking, it is also threat for BOP.

24
Currently The Bank of Punjab is facing major threat in Pakistan that is private
businessmen do not prefer the Bank of Punjab due to the standard as compare to
private bank.

PEST Analysis

Political-Legal:
There is persistent change of rules and regulation by GOVT. so it disturbs the
performance of the organization.
Agriculture contributes to poverty reduction for vast majority of the poor live in rural
areas. Government has taken initiatives in agriculture and rural development.
The fluctuation in the rules of monetary policy is also the reason of bad condition of
any economy.
Improvement in law and order and elimination of political unrest are very much
imperative for the Government in order to provide investment conducive environment
to both local and foreign investors.

Economic:
Energy crisis is looming in the country, because of an increase in demand and a rather
slow improvement in supply.
Economic instability spreading in worldwide financial markets & investors are losing
their confidence in banks.
The budget is also relates with the economic factor of any country. If the Budget is
encouraged then there will be more deposits for bank so that the bank can lend
money to the agriculture and industrial sectors. Then there should be boom condition
and vice versa.
If the interest rate is decreases then there shall not be any healthy sign for the BOP.

Socio cultural:
The shifting of the Younger Generation to a separate place after the marriage. So they
want House hold products like freezer, car, television and bike. For this they have need
money in such situation they shall borrow the money from the bank.

25
The changing in life style is also a positive sign for the Bank. Now everyone wants that
he have a full furnished house. For this if he shall not in situation to purchase then he
cannot achieve his life style. This is when he has no enough money for this he shall feel
the need of loan from the bank.
The illiterate people feel hesitation to put their money in the banks. So, this impact
negatively on banks banking filed. But there is also positive side of this that is illiterate
people trust more on banks to deposit their money; without having any information
about the bank.

Technological:
Latest computerized control system
Strategic plan 2005-10 of SBP for all Pakistani banks ensures technological
advancements in the whole banking sector.
Latest developments in terms of technology in computer and telecommunication have
encouraged the bankers to change the concept of branch banking to anywhere
banking.
In these days the banks are also using mobile banking by sending SMS. For example SMS
functions you can send the SMS to Bank and then bank shall recognize the SMS and shall
provide the information to you.

26
BCG matrix

BOP lies in the first quadrant which is base on the market penetration,market
development,product development.BOP is also opening outside the Punjab and ls
also opening outside the Punjab.BOP lies in question mark.

27
Unit # 3

28
These are various production facility and other services provided by the BOP
Atm facility
On-Line Banking
E-Banking
Demand Drafts
Letter of Credit
Pay Order
Mail Transfer
Debit Card
Quality assurance services:

Automated Teller Machine


Through the ATMs Customers have access to the various services such as withdrawal,
balance enquiry and mini statement. Complete security is ensured because access to the
account is only possible by entering a four digit personal identification number (PIN) known
only to the account holder. Cash withdrawal limit is up to Rs.20, 000 per day. Annual
charges of ATM is Rs.250/- per card.

Online Banking
BOP is currently offering window-based online banking to its customers, which gives access
to information on their accounts and the liability to act on the latest information received
over the net.

Demand Draft
BOP provides safe, speedy and reliable way to transfer money at vary reasonable rates.
Any person whether an account holder of the bank or not, can purchase a Demand Draft
from a bank branch.

29
Letter Of Credit
BOP is offering its business customers the widest range of option in the area of
money transfer. BOPs letter of credit service is with competitive rates, security, and ease
of transaction, BOP Letter of credit is the best way to do the business transactions.

Pay Order
BOP provides transfer of money using different facilities. Its pay orders are a secure and
easy way to move the money from one place to another. The charges for this
service are extremely competitive.

Mail Transfer
Move money safely and quickly from BOP Mail Transfer service. The rates for this
service is quiet impressive as compare to the market.

Agricultural Financing:
The bank provides adequate and timely financial assistance to the farmers to
improve production potential of agriculture sector. Insurance of leased assets, animals,
crops and life assurance of borrowers are all source of money for the bank.

E-Banking:
The bank has a centralized database that is web-enabled. All the services that the bank
has permitted on the internet are displayed in menu. Any service can be selected and
further interaction is dictated by the nature of service.

Utility Bills:
The bank also makes possible the payment of electricity, gas and telephone bills
for its customers charging some commission on each payment.

30
Agriculture Financing:
The bank provides adequate and timely financial assistance to the farmers to
improve production potential of agriculture sector. Insurance of leased assets, animals,
crops and life assurance of borrowers are all source of money for the bank

Debit Card
BOP Apna Cash Card is an ATM plus Debit Card.1. The front of the card will have the
following matter on it:

Card Holders Name


International Bin Number (6 Digits - XXXXXX)
Magnetic Strip
Signature Panel
Conditions of Usage
M-Net and M-Net logo

Operations Control Department


Operations department manages all departments of bank. Operations Manager is responsible
for all operations of cash department, remittance department and clearing department.
Opening of new accounts, closing of zero balance accounts, updating all operational records
etc. is done in operations department.

Account Opening Department Policies & Procedure


Account opening is the first step towards establishing a relationship between the
customer and the bank. Whenever a person has to use the services of a bank, he / she have
to open an account with any of the banks available at region.

Major task of account opening department:


Responsible for account opening/closing processing requests.
Deals with customer queries
Statements printing
NADRA verification
Issuance of checkbook as per laid down procedure

31
Preparation of periodical MIS related to client service area.
The Bank of Punjab is offering basically two types of account:
Current Deposit Account
Profit and Loss Sharing Account
The necessary condition for a customer, who wants to open an account with the bank, is
introduction, which is preferably by the bank officers or any account holder of the bank. The
different categories of accounts that are available are as under.

i. Individual Account
ii. Joint Account
iii. Sole proprietorship
iv. Partnership Account
v. Limited Company Account
vi. Clubs, Society, Association, or Trust Account
vii. Short Notice Term Deposit
viii. TDR
ix. Govt accounts , Local Bodies & autonomous Bodies

Account Opening Procedures:


Account opening procedures are being discussed step-vise below in detail:
I. Account Opening Form:
When the Customer approaches to bank for account opening purpose, an Account Opening
Form is provided to him. He / she have to fill in the form the required data and information
being asked in different sections of the form. Also the form has to be signed by the customer
at various sections marked by the concerned Banking Officer. Incase if the customer is
illiterate or is not able to read / understand English, the banking officer facilitates him / her in
this matter too. Besides these photocopies of certain other requirements have to be attached
with the form while submitting it back to the banking officer.
II. Completion & Submission Of Account Opening Form:
After being completely filled and duly arranged the requisites for opening an account, the
customer has to submit the account opening form to the concerned banking officer at the
branch he has obtained form from. The banking officer duly checks and verifies all the
information filled by the customer in the form.

32
III. Signature Specimen Card:
Signature specimen card is compulsory for opening an account in the bank. Without getting
signature of customer you cannot open the account. This card holds the authorized signatures
of all the account holders of that particular account. This card is then being signed and
verified by the concerned manager. After completion and authentication of the card, it is
being uploaded on the database. In this way any authorized banking officer is able to verify
any customer's signatures whenever his signed instrument is introduced in the bank. Thus, to
ensure more customer privacy and security.
Account closing:
Some are the basic reasons of the account closing. These are

Closing of account if the death of the customer

Account closing due to bankruptcy of the account holder

Account closed if account has nil balance requirements.

There is no transaction in account for the 6 months. The account will be dormant.

Deposit Department:
In modern times very few business enterprises are carried out solely with the
capital of the owners. Borrowing funds from different sources
has becomes an essential feature of today business enterprise. But in
t h e c a s e o f a n e n t i r e b a n k i n g system is based on it. The borrowed capital of the bank
is much greater than own capital. Banks borrowing is mostly in the form of deposits.
These deposits are lent out to different parties.

Nature of Deposit
1. Current or demand Deposits
2. Saving Deposit
3. Short Notice Term Deposit
4. Call Deposits
5. Fixed or Term Deposits

33
Current Deposit
Current deposit are those which are payable to bank whenever demand by the customer.
Bank doesnt pay any profit on current deposits.

Saving Deposit

This type of accounts is one step towards the Islamization of banking system in Pakistan.
There are two types of PLS Accounts.

PLS Saving Account


PLS-TDR (Profit & Loss Sharing Term Deposit Receipts).
PLS saving accounts can be opened with the minimum sum of Rs. 100 and PLS -
TDR account can be opened for a sum of Rs. 1000 or above. Profit is paid on both
types of the PLS account on half yearly basis.
Under PLS saving account the depositor undertakes to share profit or loss on the
deposits earned or sustained by the bank. Secondly the bank is at the liberty to invest the
funds of the deposits in any avenue, it deems fit. The PLS deposits are invested in non-
interested channels.

Deposit Products include

I. Current Accounts
II. BOP Basic Banking Account
III. BOP Tijarat Account (LCY)
IV. BOP FCY Supreme Current Account

Profit Loss Sharing Term Accounts

I. BOP Pehlay Munafa Scheme


II. Corporate Premier Term Account
III. Munafa Hi Munafa Term Account - III
IV. Bai-Misaal Term Deposit Account

Profit Loss Sharing Accounts

I. PLS Saving Account


II. Senior Citizens Saving Account

34
III. Gharayloo Saving Account
IV. Ziada Munafa saving Account
V. PLS-Saving Profit Plus Account
VI. Corporate Premier Account
VII. BOP PLS Supreme Saving Account
VIII. BOP FCY Supreme Saving Account

Advances/Credit Department Policies


It is the loan function, which produces the major person of banks income, and as such it is
the major areas of professional bankers concern and attention.
Many there are two types of advances:
Short-term (maturity within one year)
Long term (maturity with the period of more than one year)

Running Finance
This form of finance was previously known as overdraft. When a customer requires the
temporary accommodation, his bank allows withdrawal his account in excess of
credit balance, which the customer has in its account, a running finance occurs.

Demand Finance

This is common form of financing to commercial and industrial concerns and


is made available either against pledge or hypothecation of goo
d s p r o d u c e o r merchandise. In Demand Finance the party is financed up to a certain
limit either at once or as and when required. The party due to facility of paying mark-up only
on the amount it actually utilizes prefers this form of financing.

I. Ordinary Shares
II. Preferred Shares

It can be
i. Quoted or Unquoted
ii. Registered
iii. Bearer
iv. Inscribed

35
v. Agriculture Credit Department:
Agriculture Products Include:

There are many agriculture promotion schemes provided by BOP. Such type of schemes
provides farmers a real plate form to accelerate. Some facilities given by Kissan Dost
Agricultural finance scheme are:

I. Green Tractor Lease Finance Scheme


II. Agri Finance Branches
III. Agricultural Finance Scheme
IV. Kissan Dost Tractor Scheme
V. Second Hand Tractor Lease Finance Scheme
VI. Kissan Dost Aabiari Scheme
VII. Kissan Dost Mechanization Support Scheme
VIII. Kissan Dost Farm Transport Scheme
IX. . Kissan Dost Live Stock Development Scheme
X. Kissan Dost Commercial Agro Services
XI. Corporate Farming Finance Scheme
XII. Commercial Lease Finance Tractor Scheme
XIII. Demand Finance-Sheds Construction and Civil Works
XIV. Lease Finance Facility for Milch Animals
XV. Running Finance-Livestock/Poultry and Fish Farms
XVI. Kissan Dost Model Dairy Farms (PDDC)
XVII. Kissan Dost Green House Finance Facility
XVIII. Scheme for Controlled Sheds
XIX. Lease Finance Facility for Installation of Biogas Plant
XX. Group Financing to Small Farmers

Business Promotion Finance Schemes:

I. Assaish Loan
II. Quick cash
III. Car Loan

36
IV. House Loan
V. Smart Cash Personal Loan
VI. BOP Motorcycle Loan
VII. BOP House Loan For Federal Government

Cash Department
The main purpose of cash department is to deal with money thats why it is also consider as
risky department. The employees required for this department must be active, competent and
vigilant. The effectiveness of Bank is also related to cash department it must be strong and
busy in cash department. Cash department major focus is on branch cash balance, safe
custody of keys, Security measures as well as on sorting of notes and coins.

Receipt and payment of Cash:

Cashier will receive the cash from customer on a printed form known as pay-in-slip. The
receipt side deals in

Collection of funds
Collection of utility bills
Acceptance of deposits

Cashier will make cash payments to presenter of valid cheques/instruments after making
necessaries formalities. Payment side deals in

Payment of cheques
Remittance

Basic Task

Issuance of token
Receiving of cash
Making cash payments
Receiving school fee
Receiving utility bills
Handling and keeping record of said department

37
1.1. Clearings Department
This department receives the cheque and other negotiable instruments drawn on local
branches of other banks. State banks of Pakistan has clearing house, in which cheque and
other negotiable instruments are brought by each local bank representatives and the mutual
claims of each bank on other and offset and settlement is made by the payment of difference.
Clearing system is help full for both the customer and saving currency, time and labor.
Investments which are collected
o Cheques
o Demand Drafts
o Telegraphic transfers
o Mail Transfers
o Pay Order
o Dividend Warrants
Clearing of cheque
If a customer receives a cross cheque from an account holder of another bank / branch, and
this customer of ours produce the cheque to our branch with the purpose to deposit it in his /
her account or vice versa. Then in such case this cheque is to be sent by post to the concerned
bank branch for clearance purpose. Once the cheque is sent and then received back, the
amount is transferred to the depositors account. This service is carried out through an
institution named as NIFT. It has certain charges mentioned in the schedule of charges.
There are two types of clearings:
Outward Clearing:
When the cheques of our branch is being presented in some other bank / branch by either our
customer himself or some other person authorized by our customer, then such kind of
clearing is drawn by us. This is called Outward Clearing. Cheques received in this case are
normally being presented to us by representative of NIFT early morning. In this case, the
customer's account is debited.

Inward Clearing:
When our customer deposits cheques of some other bank / branch with us, this is called
"Inward Clearing". Such cheques are being stamped in the date of next working day and
handed over to NIFT representative. Its clearing report is received on the next working day. If
the report is clear, our customer's account is credited.

38
NIFT ( NATIONAL INSTITUTIONAL FACILITATION TECHNOLOGIES):
NIFT stand for National Institutional Facilitation Technologies. Clearing house of State Bank
of Pakistan has shifted a part of its work to private institution named as NIFT. NIFT collects
cheques, demand draft, pay-order, and travelers cheques etc. from all branches of different
banks within city through its couriers and send them to the branches on which these are
drawn for clearing. NIFT prepare a sheet for each branch and send it to each branch as well
as to State Bank of Pakistan where accounts of Banks are settled.
Account Department
Account department is the backbone of a bank. It plays a vital in performing
different functions of a bank. The account department of is computerized as well
asm a n u a l . A c c o u n t i n g b o o k s o f d i f f e r e n t d e p a r t m e n t s a r e m a i n t a i n e d u n
der thisdepartment and with the help of these, accountant prepare the
m o n t h l y q u a r t e r l y, semiannually and yearly financial statement and order
statement of the whole bank. A l l t h e t r a n s a c t i o n t a k i n g p l a c e i s r e c o r d e d
d a i l y i n t h e b o o k s o f a c c o u n t s a n d i n computerized ledgers.

Manual Functions Of Accounts Department

Accountant prepares vouchers for all daily activities of different departments. Checking
officer checks and tallies these vouchers with their daily transactions and posts
their entries under proper heads.

Types of Vouchers
Debit Voucher
Credit Voucher
These two types of vouchers are again classified under following types: -
Cash voucher
Transfer voucher
Clearing voucher

All the daily transaction in cash, transfer andclearing is done through t


h e s e vouchers. A sheet is prepared on which all the vouchers passed during one

39
day are consolidated and summarized. This sheet is called supplementary sheet. There are
two types of supplementary sheet.

Daily paid voucher sheet


Daily receipt voucher sheet

Paid sheet is used for all debit vouchers and receipt sheet is used for
a l l c r e d i t vouchers.

Cash Book
Cash book is prepared daily to keep the record of daily paid vouchers. Cash book
contains the opening balance and the closing balance of a working day. Before writing and
balance the cash book firstly there is needed to properly arrange all the vouchers
of that day.

Remittance Department
Remittance is a major functi on of the bank. It is the transfer of money from one
place to another place. The need for remittance is commonly felt in commercial
life particularly and in everyday life generally. By proving this service to the customers the
Bank of Punjab earns a lot of income in the form of service charges.
Types of Remittance
The Bank of Punjab deals with the following type of remittances
Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
Pay Order
Now we discuss all these in detail:

Demand Draft (DD):


Demand draft is a written order given by the one branch of a bank on behalf of customer to
another branch of the same bank to a certain amount to the certain person.

Mail Transfer (MT):


It is the transfer of money from one branch to another branch of the same bank through mail
service. In mail transfer there is no need of advice as the amount is directly credited to the
receivers account.

40
Telegraphic Transfer (TT):
This is the most urgent method of remitting the money from one place to another place. This
method is used when the sender desires to send urgently, in this case the sender request the
manager of the branch to issue TT.

Pay Order (PO):


A pay order is a written order issued by the bank on its own branch, drawn upon and payable
by itself to pay a specified sum of money to the person. The purpose of a pay order is to
transfer the fund from one place to another. It is usually not issued in favor of the parties of
other cities. Usually the pay order is issued for the local transfer of money from one person to
another or from the person to any other department. It is used for different purposes. The
purpose may be the repairs of the branch or renovation of the branch.

Foreign Remittance
Transfer of money from one country to other country mostly foreign workers transfer money
to their families in home countries. Different types of remittances are being offered at BOP.

Xpress Money
BOP Easy Pay
Western Union

Marketing Department
The marketing department of the Bank of Punjab is doing wonderful job. This
involves maintaining strong relationships with current customers and attracting
the new customers. The marketing department members have strong convincing
skills. Because of competition in market there are many other Bank is exiting in
the market at that time Bank of Punjab also run marketing campaigns regarding
various products specially regarding agricultural products and cotton balt for
limit from Ginner & Oil Miller. Bank of Punjab uses a marketing strategy with
different way and different scheme.

Retail Finance Division:


Retail Finance Division is handling consumer financing and other projects such as Self
Employment Scheme for Educated Youth (SESEUY), Aashiana etc. Our strategy is to
aggressively grow in consumer assets and to enhance share of consumer portfolio in overall
RFD portfolio.

41
Part four

42
3C Analysis
1. Corporate
2. Customer
3. Competitor

Corporate

An organization does not have to excel in every function to win. Instead businesses try to
promote the business through the one key function in which no one can compete to them.
The major competitive edge that Bank of Punjab has over other is their wise range of
products they offer to their customers. No doubt todays all financial institution try to
provide their best to the customers and want to cover all the aspect of customers needs
and wants. But bank of Punjab is leading in this among all. Its have a great products list they
offer to their customer and which have the instructions that is easy for customers to met
with. They deal with the customers of all level and provide them financial aid as per their
need with fewer restrictions like help farmers by providing a wide spread product range no
one other is doing. It also provides financial aid to the small business entrepreneurs. They
also provide several products to the salaried individual for financing and saving purposes
and for making better their standard of living through car and house loan. Bank has a wide
spread branch network in all large and small cities of the countries that provide help to the
organization to run their businesses activities smoothly. The banks management structure
is too strong have also impact of government which also provide aid to the bank in the time
of need and also get financial help from bank when needed. There is upward reporting
hierarchy of the bank. All subordinates members bank report to the Head Office for daily
weekly and monthly and annual reporting and also for making significant financial plus non-
financial decisions. All the members of board of directors and all employees at senior and
junior level have code of conduct to act on in the organization that makes the environment
of the organization better.

Customer

According to Kenichi Ohmae:

43
Clients are the base of any strategy

Therefore, the primary goal is supposed to be the interest of the customer and not those of
the shareholders. The major customers of Bank of Punjab are WAPDA, WASA, Government
Institution, Educational Institution and many others. The bank of Punjab provide its best to
all the institutions of the country and these institutions are the major source of capital for
the banks. The bank makes its customer loyal through maintaining proper and continuous
relationship by using marketing strategies. The customer relationship management
department of the bank of Punjab is continuously make new and better strategies to deal
with customer in a better ways. Due to several customer friendly products of BOP, the
customers of BOP are loyal of it and cause of success of business.

Competitors

There is a strong competition in market among financial institution. The banks need to be
very well aware about the strategies of competitors to tackle with them at the right time.
There is a list of Bop competitors which are strong enough in their place as well. The major
competitors of BOP are National Bank of Pakistan, Habib Bank Ltd, Muslim Commercial
Bank, Askari Bank, Bank Al-Falah etc. In spite of this larger and tough competition BOP still
have a large market share due to the efficiency and effectiveness of its strategies, hard work
and expertise of its management and due to its variety of products in which it have a
competitive edge over its competitors. To compete in this rapidly changing environment
where competitors have most advanced technologies and strategies BOP need to work even
harder to compete with.

Michael Porter Five Force analysis

Entry barriers
The Pakistani market is highly regulated by the government and also by the central bank. A
lot of decisions such as regularization of interest on loans and deposits as well as money
supply is controlled by the state bank of Pakistan.

44
Rivalry among the existing competitor
When it comes to the banking sector in the country we could include in whole lot of public
as well as private banks along with NBFC and micro finance institutes widely spread in the
country. The banking sector of the country has 56 banking institutions which include public
sector, Islamic banks, foreign banks, development financial institution specialized banks and
micro finance institutions.

Bargaining power of suppliers


The supplier of banks is the people from who bank raise funds. So major sources funds come
from their customer who becomes the supplier in this case.

Bargaining power of the customer


The customer and the depositors have a high bargaining power in the markets. Any bank
giving the higher rate of interest would effects the large number of customer, because there
are number of banks operating in the market which offer similar services.

Threat from substitutes


There are number of substitutes in retail finance industry such as money leader NBFC micro
finance and also the insurance companies. Banks are seeing their competition rising from
unconventional companies. Markets like Pakistan customer have high propensity towards
switching to other substitutes.

Marketing Mix
The concept of marketing is very important in the business literature. Marketing strategy is
a combination of a number of marketing elements according to a market situation. If a
business enterprise rationally blends the elements of marketing into a program of mix, then
it competes, stays and earns profit in the market. In case, the integration of the various
elements of marketing is defective, the firm cannot fight out its rivals in the market and
ultimately suffers losses.

Marketing strategy is defined as

45
The set of controllable tactical marketing tools that the firm blends to produce in
response to wants in the target market.

The various elements of marketing strategy are as follows;

Products
Promotion
Price
Place

Marketers use numerous tools to elicit desired responses from their target market. These
tools constitute a market mix.

Marketing mix is a set of marketing tools that the firms use to pursue
its marketing objectives in the target market.

Four Ps Four Cs

Product Customer needs and wants

Price Cost to the customers

Place Convenience

Promotion Communication

Now let us discuss the marketing mix of Bank of the Punjab While successfully penetrating
the key domestic markets through strategic expansion and business diversification, we
remain alive to the challenges emanating from the developments in the global financial
markets; the opportunities and threats engendered by greater deregulation, and increased
customer expectations. These provide us the impetus to make the best use of available
resources, including modern technology, to meet the challenges ahead.

46
Historically, BOPs core marketing focus for its asset base has been the middle and upper
middle business houses (including wholesales and manufacturers) operating in the large
urban centers of Pakistan, which are primarily oriented towards foreign trade. This segment
contributes significant revenues to the Bank. The liability side remains focused on the
middle and upper middle class, retired and serving government and armed forces
personnel, and mid size business houses.Benefiting from the banks growing balance sheet
size, this division is now gaining momentum and our long term aim is to develop it into an
independent strategic business unit (SBU). This would enable the bank to acquire, develop
and retain specialized abilities, and enhance our focus on serving the emerging needs of the
corporate clients.

Competitive Strategy

Value added services are provided.


Pull and push strategy is adopted
Performance is better.
Welcome customer with smile.

Human Resources Department Activities:


The Bank of Punjab avails a rich and diverse human resource potential. In addressing the
need for upgrading the academic and professional expertise of
staff upto the current days requirements, the Banks training institute has played animporta
nt role. During 2005, training was imparted to 74 officers; management and other
miscellaneous courses were organized for 62 officers and refresher courses were arranged
for 408 cash officers. Keeping in view the importance of foreign exchange business and
dearthof expertise in the field of Forex Banking, we have redoubled our emphasis on
education and training in the field of foreign exchange. In the year 2005, a series of courses
were arranged to impart necessary skills and expertise to the staff under the supervision of
senior executives.
This department does all the activities related to HR and personnel management like

Job Analysis

47
Job Design
Job Description
Job Redesign
Job Specification
Recruitment
Orientation Training
Career Planning
Performance Appraisal
Compensation And Protection
Union management relations etc.

It also involves in following activities

Transfers and posting


Mandatory leaves and its observance
staff leaves and other related staff matters
Monthly statement of staff
Disciplinary action cases
case retired employees and its correspondence
Complaints and its correspondence
Marketing department

SWOT Analysis of HR Department:

Strength:

1. Increase the number of corporate accounts.


2. Reduce turnover of employees by career development and training.
3. Increase total value of commercial loans.
4. Decrease customer complaints.
5. It provides retail consumer banking.

48
Weakness:

1. Lack of online- information to the customer about the changes taking place in
the world,In earlier days of month there is a great rush of customer, which
cause inconvenience for the officer concerned and cashier as well.
2. High charges.
3. Not handsome salary packages.

Opportunities:

1. BOP b should join foreign markets it will give benefits to its employees in term
of other facilities.
2. Innovative ideas to increase new and innovative employees.
3. It should expand the business and its operations.
4. E- banking facility is also new opportunity which is flourishing business in
foreign countries and can also be here, JS takes initiatives.

Threats:

1. Upcoming banking and existing competition and it has lack of employees of that
nature.
2. Hold of foreign banks on market.
3. Political disturbance.
4. Growing global technological advancement.
5. Facing more competition by foreign banks in the market.

49
Part five

50
Financial Analysis:

Vertical Analysis:
To conduct a vertical analysis of balance sheet or income statement we take one item as
100 percent and compare all other individual item as a percentage of it. The amount
selected as base and the comparable amounts should be of same year. For profit and loss
account taking Markup/return/ interest earned as a base for calculation.

In a vertical analysis the percentage is computed by using the following formula:

A basic vertical analysis needs an individual statement for a reporting period but
comparative statements may be prepared to increase the usefulness of the analysis

Profit & Loss Statement Analysis Of Bank Of Punjab

2014 2015 2016 2014 2015 2016 %


Rs. (000) Rs. (00000) Rs.(0000) % %
Markup/ 24,666,024 24,227,721 29,521,719 100 100 100
return/interest
earned
Markup/return/ 22,522,918 20,208,687 20,525,783 91.3 83.4 69.53
interest expensed
Net 2,143,106 4,019,034 8,991,890 8.6 16.5 30.47
markup/interest
income

Provision against (965,430) (673,081) (1,118,605) (3.9) (2.7) (3.7)


non-performing
loans and advances-
net

51
Provision for 337,040 6,643 59,494 1.36 0.02 0.2
diminution in the
value of investments
Bad debts written ---- 241 ---- 0 0 0
off directly
(628,390) (666,197) 1,178,099 (2.5) (2.7) 3.99
Net 2,771,496 4,685,231 7,813,791 11 19.3 26.47
markup/interest
income after
provisions
NON MARK-UP/
Fee, commission 762,490 775,622 909,596 3.09 3.20 3.08
and brokerage
income
Dividend income 220,985 137,512 39,918 0.89 0.56 0.13
Income from dealing 162,980 147,417 183,830 0.66 0.60 0.62
in foreign currencies
Gain on Sale of 1,449,814 1,391,874 667,322 5.8 5.7 2.26
Securities
Loss on Revaluation 8,620 (4,296) (654) 0.034 0.01 0
of Investments 7
Other income 585,856 1,148,097 1,000,173 2.37 4.73 3.39
Total non- interest 3,190,745 3,596,226 2,800,185 12.9 14.8 9.49
income

5,962,241 8,281,457 10,613,976 24.1 34 35.95

Non-Interest
Expenses
Administrative 4,430,520 5,199,782 6,217,344 17.9 21.4 21.06
expenses

52
Provision against 168,419 32,945 (2,416) 0.6 0.1 00
other assets
Provision against off ---- 325 17,875 0 0 0.06
Balance Sheet Items
Provision against ---- --- --- 0 0 0
receivable from NIT
Other charges (40,590) 47,123 19,727 0.1 0.19 0.07

Total non- 4,558,349 5,280,175 6,252,530 18.4 21.7 21.18

interest
expenses

1,403,892 3,001,282 4,361,446 5.6 12.3 14.77

Extraordinary --------- --------- ------ 0 0 0


/unusual items

PROFIT BEFORE 1,403,892 3,001,282 4,361,446 5.6 12.3 14.77

TAXATION

Taxation
For the year 139,284 278,239 323,818 0.5 1.1 1.1
Current
For prior year (722,971) -- --- (2.9) 0 0
Current
-Deferred 353,738 785,036 1,196,093 1.4 3.2 4.05
(229,949) 1,063,275 1,519,911 0.93 4.3 5.14

PROFIT AFTER 1,633,841 1,938,007 2,841,535 6.6 7.9 9.63

TAXATION

Accumulated losses (14,067,841) (12,742,364) (11,275,02 (57) (52.5 (38.19)

53
brought forward 6) )
Transfer to statutory (326,769) (387,601) (557,490) (1.3) (1.5) (1.89)
reserve
Transfer from Fixed 6,801 814 (980) 0 0 0
assets disposal
Transfer from Fixed 11,604 10,352 9,858 0 0 0.03
assets net of tax
Actuarial gains on re -- 8,391 2,514 0 0 0
measurement
recognized
Right shares issue -- (78,484) (103,620) 0 0.3 0.35
cost
(14,376,205) (13,188,892) (11,924,74 (58) (54.4 (40.39)
4) )
Accumulated loss (12,742,364) (11,250,885 (9,083,209) (51.6) (46.4 (30.77)
carried forward ) )

Interpretation:

Here I use the data of 3 years from 2014 to 2016 for conducting vertical analysis of Profit &
loss statement of BOP. Banks Interest earned income is 30.47 percent more than its
expenses that shows that that band day to day operations of receiving deposit and
investing money are running in a smooth way are becoming profitable. In all three years
total interest income of business are more than its expenses that shows the management
efficiency. Especially in 2016 this increase is 14.77 percent which shows a significant
percentage of profit. After the payment of companys tax bank is liable to earn a significant
interest but not enough to cover its previous losses.

54
Balance Sheet Analysis

2014 2015 2016Rs.(00 2014 2015 2016%


Rs. (000) Rs. (000) 0) % %

ASSETS:

Cash and Balances 17,298,251 23,820,864 23,622,411 5.2% 6.7% 5.6%


with treasury Banks
Balances with other 3,101,170 4,265,296 2,239,170 0.93% 1.20% 0.53%
Banks
Lending's to financial 1,562,946 11,407,448 32,748,623 0.47% 3.2% 7.8%
institutions
Investments 129,518,999 123,956,143 154,874,75 38.9% 35.1% 36.8%
7
Advances 149,605,002 157,285,598 170,312,59 45% 44.5% 40.5%
3
Other assets 14,480,581 15,820,643 21,237,087 4.3% 4.4 % 5.05%

Operating fixed 3,473,491 3,514,801 5,490,121 1.04% 0.99% 1.3%


assets
Deferred Tax assets 13,070,614 12,627,352 9,845,426 3.9% 3.5% 2.3%

Total Assets 332,111,054 352,698,145 420,370,18 100% 100% 100%


8

LIABILITIES

Bills payable 1,500,709 1,506,335 1,727,731 0.45% 0.42% 0.41%

Borrowings from 44,683,826 22,802,482 44,742,624 13.4% 6.4% 10.6%


financial institutions
Deposits and Other 266,055,781 306,560,767 342,290,76 80.1% 87% 81.4%

55
accounts 3
Subordinated Loans -------- ----- 2,000,000 0% 0% 0.47%

Liabilities against 3,601 2,386 1,128 0% 0% 0.0%


assets
Other liabilities 7,495,634 8,344,877 10,281,235 2.25% 2.36% 2.44%

Deferred Tax ------ ------- ------ ---- ---- ----


liabilities

Total Liabilities 319,739,551 339,216,847 401,043,48 96.2% 96.1% 95.2%


1

Net Assets 12,371,503 13,481,298 19,326,707 3.7% 3.8% 4.5%

Represented By:

Share Capital 5,287,974 10,551,132 15,551,132 1.59% 2.9% 3.6%

Discount on issue of (263,158) (263,158) -- -0.07% -0.06%


shares
Reserves 1,187,433 1,539,659 2,081,243 0.35% 0.43% 0.49%

Accumulated loss (12,742,364) (11,250,885) (9,113,154) -3.8% - -2.16%


3.18%

(6,266,957) 576,748 8256063 -1.8% 0.16% 1.96%

Share deposit money 17,000,000 12,000,000 7,000,000 5.11% 3.4% 1.6%

10,733,043 12,576,748 15,256,063 3.2% 3.5% 3.6%

Surplus on 1,638,460 904,550 4,070,644 0.49% 0.25% 0.96%


revaluation of assets

56
Interpretation:

The balance sheet shows that banks cash balance is 5.6% and balance with other banks is
only 0.53% in 2016 and same the case was is previous 2 years where bank have less cash in
hand and more investment balances. Its means the bank has less cash lying un-profitable
and have invested all the money in profitable ways to earn more income. Banks also lend
7.8%money to other financial institution that shows its strong financial position. A
significant portion of advances and investment is asset side 36.8% and 40.5 respectively
shows the healthy and successful transactions and financial position of bank.

The banks total liabilities are 95.2% of its entire asset that shows how banks finance its all
asset and the significant source of financing are through deposits of customers. The bank
has minor bill payable liabilities and no deferred tax liability in all three years. Bank also
borrow 10.6% money through other financial institutions. The bank has 4.5% excess assets
over its liabilities that show its financial position is strong and less risk is involved.

The total equity of company is only 4.6% of its assets that show the truth that bank gets
more money through advances and loans rather than its owns.

Horizontal analysis (also known as trend analysis) is a financial statement analysis


technique that shows changes in the amounts of corresponding financial statement items
over a period of time. It is a useful tool to evaluate the trend situations.The statements for
two or more periods are used in horizontal analysis. The earliest period is usually used as
the base period and the items on the statements for all later periods are compared with
items on the statements of the base period. The changes are generally shown both in dollars
and percentage.
Dollar change=Amount of the item in comparison year-Amount of the item in base year

Percentage change=Dollar change/amount of the item in base year*100

Income Statement Analysis

2014 2015 2016 2014- 2015-


2015 2016
Rs. (0000) Rs. (0000) Rs.(0000) % %
Markup/return/interest 24,666,024 24,227,72 29,521,719 (1.78) 21.85

57
earned 1
Markup/return/ interest 22,522,918 20,208,68 20,525,783 (10.28) 1.57
expensed 7
Net markup/interest income 2,143,106 4,019,034 8,995,936 87.53 123.83
Provision against non- (965,430) (673,081) (1,118,605) (30.28) 66.19
performing loans and
advances-net
Provision for diminution in 337,040 6,643 110,881 (98.03) 1569.14
the value of investments
Bad debts written off directly ---- 241 ---- 0
(628,390) (666,197) 1,229,486 6.02 (284.55)
Net markup/interest income 2,771,496 4,685,231 7,766,450 69.05 65.76
after provisions
NON MARK-UP/INTEREST
INCOME
Fee, commission and 762,490 775,622 906,494 1.72 16.87
brokerage income
Dividend income 220,985 137,512 33,258 (37.77) -75.81
Income from dealing in 162,980 147,417 183,830 (9.55) 24.70
foreign currencies
Gain on Sale of Securities 1,449,814 1,391,874 667,322 (3.99) -52.06
Unrealized Gain / Loss on 8,620 (4,296) (654) (149.84) -84.78
Revaluation of Investments
classified as held for trading
Other income 585,856 1,148,097 1,000,180 95.96915 -12.88
Total non mark-up/interest 3,190,745 3,596,226 2,790,430 12.70804 -22.41
income

5,962,241 8,281,457 10,556,880 38.89839 27.48


NON MARK-UP/ INTEREST
EXPENSES

58
Administrative expenses 4,430,520 5,199,782 6,215,031 17.36 19.52
Provision against other 168,419 32,945 (2,416) (80.44) (107.33)
assets
Provision against off Balance ---- 325 17,875 5400
Sheet Items
Provision against receivable ---- --- ---
from NIT
Other charges (40,590) 47,123 19,727 (216.09) (58.13)
Total non- markup/ interest 4,558,349 5,280,175 6,250,217 15.84 18.37
expenses
1,403,892 3,001,282 4,306,663 113.78 43.49
Extraordinary /unusual items --------- ------
PROFIT BEFORE TAXATION 1,403,892 3,001,282 4,306,663 113.78 43.49

Taxation
For the year Current 139,284 278,239 323,121 99.76 16.13
-Deferred ---- --- ----
For prior year Current (722,971) -- ---
-Deferred 353,738 785,036 1,196,093 121.93 52.36
(229,949) 1,063,275 1,519,214 (562.39) 42.88
PROFIT AFTER TAXATION 1,633,841 1,938,007 2,787,449 (18.62) 43.83

Un-appropriate loss b/f 14,067,841 (12,742,3 (11,250,885 (11.70)


) 64) )
Transfer to statutory reserve (326,769) (387,601) (9557,490) 18.62 43.83
Transfer from surplus on 6,801 814 (980) (88.0311 (220.39)
revaluation of Fixed assets 7)
disposal
Transfer from surplus on 11,604 10,352 9,858 (10.7893 (4.77)
revaluation of Fixed assets 8)
net of tax

59
Actuarial gains on re- 8,391 2,514 0 (70.04)
measurement recognized
Right shares issue cost (78,484) (103,620) 0 (32.03)
(14,376,20 (13,188,8 (11,900,603 (8.25887 (9.77)
5) 92) ) 6)
Accumulated Loss carried (12,742,36 (11,250,8 (9,113,154) (11.7) (19)
forward 4) 85)

Interpretation:

In all three years the banks Net Markup is positive that shows the smooth and profitable
running of banks operation. In 2015 there was a decrease in banks return as compare to
2014 but there is also decrease in interest expense that offset the decrease of return. There
is also an increasing trend in the Net mark up of business in 2015 it was 87% more than the
2014 but in 2014 it was much more better than 2015 and double the figures of Net Markup.
The bank Non-markup interest income has an increase in 2015 but there is a decreasing
trend in 2016 in non-markup income. There is an increasing trend in the non-interest
expense of business which shows the management inefficiency. There was a great increase
in profit before tax from 2014 to 2015. The figure of profit was double. In 2016 there is also
an increase in profit before tax almost 43% but the increase is lesser as compare to 2015
which was 113%. After the payment of taxes and other expense bank have a loss figure to
carried forward and the figure of 2014 is greater than previous years.

Balance Sheet Analysis

2014 2015 2016 2014- 2015-


2015 2016
Rs. (000) Rs. (000) Rs.(000) % %
ASSETS:
Cash and Balances with 17,298,251 23,820,864 23,622,411 37 (0.83)
treasury Banks

60
Balances with other Banks 3,101,170 4,265,296 2,239,170 37.5 (47.50)
Lending's to financial 1,562,946 11,407,448 32,748,623 629.8 187.08
institutions
Investments 129,518,999 123,956,143 154,874,757 (4.29) 24.94
Advances 149,605,002 157,285,598 170,312,593 5.1 8.28
Other assets 14,480,581 15,820,643 21,237,087 9.2 34.23
Operating fixed assets 3,473,491 3,514,801 5,490,121 1.1 56.2
Deferred Tax assets 13,070,614 12,627,352 9,845,426 (3.39) (22.03)
Total Assets 332,111,054 352,698,145 420,370,188 6.19 19.18
LIABILITIES
Bills payable 1,500,709 1,506,335 1,727,731 0.37 14.69
Borrowings from financial 44,683,826 22,802,482 44,742,624 (48.9) 96.21
institutions
Deposits and Other 266,055,781 306,560,767 342,290,763 15.2 11.65
accounts
Subordinated Loans -------- ----- 2,000,000 -----
Liabilities against assets 3,601 2,386 1,128 (33.7) (52.72)
subject to finance lease
Other liabilities 7,495,634 8,344,877 10,281,235 11.3 23.20415
3
Deferred Tax liabilities ------ ------- ------ ----
Total Liabilities 319,739,551 339,216,847 401,043,481 6.09 18.22
Net Assets 12,371,503 13,481,298 19,326,707 8.9 43.35
Represented By:
Share Capital 5,287,974 10,551,132 15,551,132 99.5 47.38
Discount on issue of shares -263,158 -263,158 --- 0
Reserves 1,187,433 1,539,659 2,081,243 29.6 35.17
Accumulated loss -12,742,364 -11,250,885 -9,113,154 (11.7) (19)
-6,266,957 576,748 8256063 (90.7 1331.48
)

61
Share deposit money 17,000,000 12,000,000 7,000,000 (29.4) (41.66)
10,733,043 12,576,748 15,256,063 17.1 21.30
Surplus on revaluation of 1,638,460 904,550 4,070,644 (44.7) 350.01
assets
Total Equity 12,371,503 13,481,298 19,326,707 8.9 43.35

Interpretation:

The figures of banks cash and balances with treasury bank have an increase in 2014 by 37%
but in 2016 there is a slight decrease by 0.83%. The figure of balances with other bank is
also has an increase in 2014 by 37% but an integral decrease in the figure by 47%. The figure
o bank lending money to other financial institution has an increasing trend in 2015 and also
even more increase in 2016 by 187%. In year 2016 bank make more investment and have
an increasing advance figures than previous years. There is a significant increase in the value
of banks operating fixed assets and other assets by 56% and 34% respectively.

The banks borrowed much more money in the recent year from other banks almost 96%
more than previous year and there is also an increase in the overall liabilities of the bank in
the year 2016 by 18% than previous years.

The banks working capital ratio is also have a significant increase from 8.9% to 43% in 2013
and 2016 respectively. Same as the investors get more money in the year 2016.

RATIO ANALYSIS

Liquidity Ratios
Liquidity ratios means to measure short term solvency of the company. It shows the ability
of the company to pay off its short term debt. Following ratios are calculated in order to
measure the short term solvency of the company.

Current Ratio
Acid Test Ratio
Working Capital

62
Current Ratio
Current Assets = Cash and Balance with Treasury Banks + Balance with other Banks
+Lending to Financial Institution + Short Investment + Short Advances + Other Assets

Current Liabilities = Bill Payables + Short Borrowing + Short Deposit + Other Liabilities

Current Ratio = Current Assets / Current liabilities

2014 2015 2016

=315566949 / 319735947 =336555992 / 339214461 = 405,034,641 / 399,042,353

=0.98 =0.99 =1.02

Explanation:

The standard of this ratio is 2:1, means current assets are twice the current liabilities. But
Bank of Punjab has a lower current ratio to the standard rate. In 2014 it was 0.98, in 2015
was 0.99 and in 2016 it is 1.02. But this ratio is due to the nature of business. Current ratio is
not the true measure of risk for a financial institution.

Leverage Ratios
These ratios show the capital structure of the firm. Through these ratios we find that how
the firm finance their activities. It is more important for the lender to assess that the firm
can repay the loan amount or not. Increasing debt increases the likelihood of bankruptcy of
the firm. Following ratios falls under this category,

Debt to asset Ratio


Debt to Equity Ratio
Total Capitalization Ratio
Time Interest Earned

63
Debt to Asset Ratio
Total Debt = Bills Payable + Borrowings from financial institutions + Deposits & other
accounts + Subordinate Loans + Liabilities against assets subject to finance lease + deferred
tax liabilities+ Other liabilities

Total Assets = Given in the Balance Sheet

Debt to Asset Ratio = (Total Debt / Total Assets) * 100

2014 2015 2016


= 319,739,551 / 332,111,054 = 339,216,847 / 352,698,145 =401,043,481 / 420,370,188

= 0.96 = 0.96 =0.95

Explanation:

Debt ratio is measure of debt with the total assets. The debt ratio is almost constant that
indicates the dependence on debt is constant for these three years. In 2014 the total Debt
was the almost 96% of Total Assets same was in the year 2015 and 2016 96% and 95%
respectively.

Debt / Equity Ratio


Total Debt = Bills Payable + Borrowings from financial institutions + Deposits & other
accounts + Subordinate Loans + Liabilities against assets subject to finance lease + deferred
tax liabilities+ Other liabilities

Total Equity = Share Capital + Reserves + Un-appropriated Profit (-loss)

Debt to Equity Ratio = Total Debt / Total Equity

2014 2015 2016

64
= 319,739,551 / -6,266,957 = 339,216,847 / 576,748 = 401,043,481/ 8,256,063

= -51.02 = 588.15 = 48.58

As financial institutions provide services to their customer and the business is almost wholly
based on the deposits receipts from the customer rather than their own money. This is as
shown in the debt to equity ratio. In year 2014 the business was either reinvesting all its
profit in business operation or expenses was more than income earned by the bank so the
value of debt to equity is negative. The Debt to equity ratio of 2015 denotes debt as most
integral part of business. The year 2016 denotes the portion of debt and equity is almost
equal. This ratio is mainly due to inclusion of significant portion of reserves and share
capital in equity.

Interest Coverage Ratio:


Interest Coverage Ratio = Earnings before Interest and Tax (EBIT) / Interest
Expense

2014 2015 2016


= 1403892 / 22522918 = 3,001,282 / 20,208,687 = 4,306,663 / 20,525,783

= 0.06 = 0.15 = 0.21

This ratio denotes interest expenses are more than income earned before interest and tax.
The ratio is not so good but there is a positive increasing trend in EBIT from 2012 to 2014 as
0.06% to 0.21% respectively.

Total capitalization Ratio


Long Term Debt = Deposit and other account + Liabilities against assets subject to
finance lease + Deferred tax liabilities + other liabilities

65
Long Term Debt
Total Capitalization Ratio =
Long Term Debt + Shareholder's Equity

2014 2015 2016


= 273555016 / 267288059 = 314908030 / 315490778 = 352,573,126 / 360,829,189

= 1.02 = 0.9981 = 0.98

Explanation:

The total capitalization ratio compares the total debt with the sum of debt and equity. The
low capitalization ratio indicates the financial fitness of the firm. According to the
calculation, It can be seen that the ratio in 2013 and 2014 is lower than 2012.

Profitability Ratios
Profitability ratios measure the earning ability of the firm. Following ratios are calculated:

Net Profit Margin


Gross Profit Margin

Net Profit Margin


Net Profit = Profit after Taxation

Total Revenue = Markup/ return/interest earned

Net Profit Margin = (Net Profit / Total Revenue)*100

2014 2015 2016


= (1633841/ 24,666,024) =(1938007/ 24227721) = (2,787,449 /
*100 *100 29,521,719)*100

66
= 6.62 = 7.99 = 9.44

Explanation:

The net profit margin is increasing from 2014 to 2016. In 2014 the net profit margin is 6.62%
which is lower in selected three years. After this it start to increase and in 2014 it is 9.44%.
This ratio indicates that net profit is what percent of interest earned/ revenue/ returned.

Gross Profit Margin


Gross Profit Margin = (Gross Profit / Total Revenue) * 100

2014 2015 2016


=(2,143,106/24,666,024)*10 =(4,019,034/24,227,721)*10 =
0 0 (8,995,936/29,521,719)*10
0
= 8.68 = 16.58
= 30.47

Explanation:
This ratio tells that gross profit or in case of bank Net Mark up/Interest Earned is what
percent of total interest earned. This ratio also shows the increase in revenue of BOP. In
2014 it is 8.68% in 2015 it is 16.58% and in 2014 it is 30.47%. BOP is facing an increasing
trend in the gross profit margin.

Activity Ratios:
Return on Assets/Investment
Return on Total Equity
Fixed Assets Turnover

Return on Assets
Net Profit = Profit after Taxation

67
Total Assets = Given in the Balance Sheet

ROA = Net Income / Total Assets

2014 2015 2016


= 1,633,841/ 332,111,054 = 1,938,007 / 352198645 = 2,787,449 / 420,370,188
= 0.004919 = 0.00550 = 0.0066

The income statement of BOP is continuously showing previous accumulated loss. Either
bank is earning profit but to fix the previous loss the profit is not distributed in shareholder
either reinvested to earn more profit. So all the three years showing almost no earning to
the investors of the bank. But there is an increasing trend in return as shown by figures.

Return 0n Total Equity


Average Stockholder Equity = Share Capital + Reserves + Un-appropriated
Profit (-loss)

ROE = Net Income / Average Stockholder Equity

2014 2015 2016


= 1,633,841 / 6,266,957 = 1,938,007 / 576748 = 2,787,449 / 8,256,063
=0.26 =3.36 = 0.34

Explanation:
Return on Owners Equity in the year 2014 is 0.26%, in the year 2015 there is an increase to
3.36% and in the year 2016 is again decreased to 0.34%. This change is due to increase or
decrease in the value of denominator. As in 2015 the value of total equity is less therefore
the return on equity is greater than other two years.

Fixed Assets Turnover


Fixed Assets Turnover Ratio = Interest or Markup / Fixed Assets

2014 2015 2016

68
= 24,666,024 /.3,473,491 =24,227,721 / Rs.3,514,801 = 29,521,719 / 5,490,121

=7.10 =6.89 = 5.38

Explanation:

The fixed asset turnover ratio measures the company's effectiveness in generating sales
from its investment in fixed assets. The ratio shows the decrease in fixed assets turnover in
2015 and a further decrease in 2016. It means that the generation of revenue on the fixed
assets is facing a decreasing trend.

Chapter # 6
69
Recommendations

Marketing Policy:

The branch should adopt various marketing strategy and promotion strategy to
promote the bank and its product. The most important in my opinion is personal
70
marketing; it is the most effective of all when you think in term of branch level. But on
the whole organization level, they should arrange the seminar within the bank
and outside the bank. They should introduce various prizing schemes just like Allied Bank.
Karamad Scheme, Bank Al-Falah (monthly income earning scheme) and various others. They
should do more advertising through newspaper and media and through channel of contacts.

Complaints with Customers:


There should be an information desk to provide the information and to receive the
complaints of the customer in the bank. There is no complaint box available in the branch
and not any person appointed to hear the complaints. Every person cannot go to the
manager for the complaint because most of the people are hesitant. So I suggest
management to install a compliant box in the branch, and recruit a special
person for that guidance of the customer when they are unable to manage some
difficulties in banking matters

Organizational Commitment:
It is suggested that employees working on daily wages basis should be given some benefits,
which the other employees are getting. Their salaries must increase according to efficiency,
performance and service this will increase their commitment to the organization.

Improper Distribution of Work:


Proper distribution of work leads to success in every organization. Proper distribution of
work prevents the employee from over and under work situation. So for a smooth running
of an organization proper distribution of work is the hint to be followed.

Staff Relationship
Good relationship among staff member leads to the peak performances in any organization.
I observed that the staff relationship was normal otherwise but some time I noticed that
there exists little conformity among the staff members. Another syndrome from which the
staff suffered was that all of them considered themselves more important than others.
Some of the officers used to say that if I am absent for a day the bank would stop working.

71
So this sort of attitude is not good because it mars bank image and juniors willingness learn
and work hard and in the end will hurt the whole team.

Link with the Head Quarter

branches of BOP should established a direct link with the, head quarter in Lahore,
through Internet or Intranet. This will make the functions and decision making
of the management easier and convenient. Though management has a plan to
connect all branches via WIMAX technology, which would really bring a great future
aspect.
Conclusion:
By analyzing the financial statements of the bank, I came across to know that
it is one of the most growing banks in the subcontinent. Now they should carry on with
the present management which took it from one of the ordinary bank to the highest level.
No doubt professionalism and internal controls of the bank are one of the major issues
which may results some major losses to the bank. Bias in hiring and between
colleagues should be removed. Bank need to redesign their marketing and customer
relationship management departments. Especially the marketing department needs more
attention and strategy revaluation.

72
Chapter # 8

Training program
I have done my internship in the Bank of Punjab Dina Branch. The Bank of Punjab Dina
Branch (0163) is the single branch in city. The Branch is located at G.T Road Dina.In the said
branch is consists of 8 clerical and 4 non clerical staff. ATM facility is available at branch.
Locker facility is also available. Branch is secured with CCTV cameras to avoid any
mismanagement with in branch and security guards are well equipped with security
weapons.

There are following learning points and work done by me in the bank.

First week

Duties

73
First week in the bank of Punjab which I started on 19th of July 2016 they assigned me the
work in the deposit department also known as Cash and Account department under the
supervision of Mr. Akram Choudhary. They both trained me very well. They taught me how
to tackle and survive in a formal working environment. I have learned from him about the
following:
Receipts and Payments.
How to receipt cash and how to enter it in computer?
How to sort the Vouchers
How to fill the voucher for issuing of the Cheque Book for the first time
How to fill the requisition slip for the second time issuance
Remittances
How to enter the record in file to issue cheque book?

Second Week

Duties

In my second week of internship started from 6th July 2015 I also performed work in the
same deposit department. Voucher sorting,cheque book issuance, Company internal
transfer of information in their system.Learn how to deal with leaseing,

But rather than learning and observation I by myself performed all these duties mentioned
above and the remarks of both my assistants were that I performed well in this period of 2
weeks.
Third Week

Duties:
In my third week in Bank of the Punjab started from 26th July 2016, they assigned me to
work in remittances department along with customer dealing under the supervision of
Mr.sufiyan ahmad

How to deal with foreign remittances


Money transfer companies names and their codes.

74
Customer satisfaction

In my third week of training I was able to handle remittance department and know about
the documentation require for remittances
Fourth Week

Duties

In my fourth week of internship I also did the duties in the accounting opening
department,Form filling for individual and joint account, loan and interest.
Fifth Week

Duties
In my fifth week of internship started, I assigned work in the marketing department under
the supervision of Mr. Sufiyan Ahmad. He taught me about how to deal with the customer
when they step in the bank to get information about the banks services. In what ways you
can build the strong positive image of the bank in the customers mind. And inform me about
the marketing strategies the bank is currently used for marketing purposes.

Sixth Week:

Duties:
In my 6th week of internship I assign the work in remittance and also problems related to ID
card under the supervision of Mr. Zulqarnain Haider. Here in this department I have learned
how to deal with remittance received from various sources like Express money, BOP Easy
Pay, Western Union.Demand draft is for payment outside of city and pay order for local
payment. It is a secure source of payment.

There are no charges for Pay order while other banks charge for this service so it is an
advantage going to BOP bank to attract customers.

Seventh Week:
Duties

75
In the seventh week of my internship I worked in the same remittance department,Account
department,Deal with remittance from express money

Eighth Week

Duties:
In the eight week of my internship I worked with khuram Shahzad who taught me about
usage of different stamps and customer dealings . 8 weeks of internship is great experience
for me

Daily Activities done by me in the organization

I start working with the Bank of Punjab from 19th of July 2016 to 18th september 2016.

My working hours were from 9 AM to 5 PM.

Week # 1

Date Day Activity

19th July Monday Introduction to Staff


Voucher sorting, basics of
receipt and payments
20th July Tuesday Filling of deposit slips

21th July Wednesday Issuance of cheque book and


ATM card applications.
Filing or requisition slip
22th July Thursday Issued bank statement to the
customer.
23th July Friday Issuance of cheque book to
customer.

Week # 2
76
Date Day Activity

26th July Monday Voucher sorting


Cheque book issuance

27th July Tuesday Company internal transfer of


information in their system.
Learn how to deal with
leaseing
28th July Wednesday Voucher sorting
Deposit slip
Remittances
29th July Thursday Deal with remittance
Learn how to issue duplicate
copy
30th July Friday Voucher sorting
Learn about western union

Week # 3

Date Day Activity

2nd August Monday Learn about various products


of bank, codes
3rd August Tuesday Learn the procedure of cash
4th August Wednesday Learn about account
documentation
5th August Thursday What documents require for
opening account(NAB,FAQ)
6th August Friday Stamping of documents

77
Week # 4

Date Day Activity

7th August Monday Learn about easy pay


8th August Tuesday Form filling for individual and
joint account.
9th August Wednesday loan and interest
10th August Thursday ID card information
remittances and customer
dealing.
11th August Friday Customer dealing,remittance

Week # 5

Date Day Activity

12th August Monday Learn about marketing


strategies used by bank
13th August Tuesday Learn how to deal with
customer come to get
information about banks.
14th August Wednesday Customer satisfaction
15TH August Thursday Acceptance of request for
new locker, issuance of
locker, record keeping.
16th August Friday Learn about expected
changes in marketing plans

78
and their effectiveness and
efficiency

Week # 6

Date Day Activity

19th August Monday Deal with remittance from


express money
20th August Tuesday Remittances which is not
available
21th August Wednesday Remittance
22th August Thursday Customer dealing by calls
23th August Friday Deal with the student loan
by bank

Week # 7

Date Day Activity

26th August Monday Customer dealing,


remittance
27th August Tuesday DD, pay order filling
28th August Wednesday Remittance, customer
dealing
29th August Thursday DD pay order filling and
stamping
30th August Friday Remittance, pay order, DD
filling and stamping

79
Week # 8

Date Day Activity

2nd September Monday Learn basics of clearing


3rd September Tuesday Learn about Inward clearing
process
4th September Wednesday Learn and perform inward
clearing process
5th September Thursday Learn about outward
clearing process
6th September Friday Deal with outward clearing
process

References:

1. http://www.bop.com.pk/view.aspx?id=4
2. http://www.bop.com.pk/view.aspx?id=6
3. http://www.bop.com.pk/view.aspx?id=5
4. http://www.bop.com.pk/view.aspx?id=8
5. http://globaleduinfo.blogspot.com/2013/03/internship-report-on-bank-of-
punjab.html
6. http://www.bop.com.pk/view.aspx?id=7

80
7. http://www.bop.com.pk/ViewManager.aspx
8. https://www.bop.com.pk/Products.aspx
9. https://www.scribd.com/doc/7499578/Bank-of-Punjab-Report
10. https://www.bop.com.pk/career/career.aspx
11. http://www.investopedia.com/terms/c/commonsizefinancialstatement.asp?layout=i
nfini&v=5C&orig=1&adtest=5C
12. http://www.accountingformanagement.org/vertical-analysis-of-financial-
statements/
13. http://www.bop.com.pk/Financials/Annual%20Accounts/AFS2012.pdf

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