Professional Documents
Culture Documents
University of Sargodha
Attach the Photocopy of your Internship Letter . bring your Internship letter in Viva
Preface:
Learning in practical side is somewhat that cannot be compared with books knowledge.m.com program is
designed in such a way that students are required to do projects and researches then give their
recommendation and conclusion. It also Provide student an opportunity to apply this knowledge in
practical field.
Now to fulfill the practical requirement of this course, I successfully completed an internship report on
the Govt. provincial cooperative bank Sargodha. It was great opportunity for me to apply theoretical
knowledge and get practical exposure. I have visited almost all the department and studied function of
each department.
The purpose of the report is to elaborate on my experience about Bank. I have tried to present the
overview of the company and its operations and the task that are carried out during my stay in bank.
Although 6 week is a small time to completely understand the processes and philosophy of a company,
but at least one gets a good overview about it, and I have tried to write all that grasped during this short
time, in this report. This report includes bank working way out, information about their departments
function and working.
I have analyzed their working and have given certain recommendations on the basis of my observation. I
have tried my level best to give real look about bank while writing this report .
“Bank is a pipeline through which currency moves into and out of circulation.”
Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a
lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern.
Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the
total deposits in cash with them in order to meet the cash requirements of the individuals and business
concern.
Definition of bank: -
“A financial institution that is licensed to deal with money and its substitutes by accepting time and
demand deposits, making loans, and investing in securities. The bank generates profits from the
difference in the interest rates charged and paid”.
”An institution where one can place and borrow money and take care of financial affairs”.
The Punjab Provincial Cooperative Bank Ltd. was established in 1924 as an Apex Bank to meet funding
requirements of cooperative societies. It is engaged in all types of banking & credit business with
societies and individuals. The PPCBL gained the status of Scheduled Bank in 1955.
PPCBL was organized and being managed on the principal of voluntary and open membership,
democratic member control, member economic participation, autonomy, independence, self-help and
mutual cooperation.
History of organization:-
The Punjab provincial cooperative bank was established in 1924 and was given the status of scheduled
bank in 1995. The Punjab provincial cooperative bank plays a vital role in the national economy through
mobilization of hitherto untapped local resources, promoting savings and providing funds for
investments. The bank offers attractive rates of profit on all deposits, opening of foreign currency
accounts and handling of foreign exchange business for example imports, exports and remittances,
financing, trade and industry for working capital requirements and money market operations. The lending
policy of bank is not only cautious and constructive but also based on principles of prudent lending with
maximum emphasis on security.
.
Vision Statement:-
To be a customer focused bank with service excellence
Mission Statement:-
“To exceed the expectations of our stakeholders by leveraging our relationship with the government of
Punjab and delivering a complete range of professional solutions with a focus on program driven products
and services in the agriculture and middle tire markets through a motivated team.
Mr. Liaqat Durrani
President/CEO:-
In line with the directions of State Bank of Pakistan and policy of the Government of the Punjab, the
PPCBL is entering the arena of e-banking facilities for their clients. Much awaited task is near completion
after that PPCBL will serve its clients in a better way. The PPCBL would be able to achieve said mission
with untiring support of the Information Technology Department Government of the Punjab and we have
no words to pay our gratitude. In addition website of the Bank has been launched and now the customers
are a click away from the solution of their queries
Business volume:-
The Punjab provincial cooperative bank limited is a scheduled bank, at present, having 161
branches at district, Tehsil headquarters and important Mandi towns. Over 38000 cooperative
societies are affiliated with the Bank. The paid up share capital of the bank amounts to Rs. 112.518
million, out of which the Provincial government subscribes shares worth Rs. 16.235 million.the
authorized share capital of bank consists of unlimited number of shares of Rs. 100 each.
A member cooperative society, which has to borrow loan from the bank for its members, has to
purchase at least shares equal to 2 % of MCL of the society fixed with the bank.
• Finance
• Human resources
• To do a comparative analysis of the organization with the other in the same business
and capacity.
• Finding out the weaknesses, short comings, strengths and beauties of the human
resource department.
• To put some suggestions & recommendations for the development and polishing of
the human resource department.
Nature of the business:-
The Punjab Provincial Cooperative Bank Ltd. Is one of the famous and well known organization in
the banking sector. Its services have won good will and the bank is considered credible throughout
its area of operation and range of business.
It gives loan to the cooperative socities and to the individuals too. More over it also offers services in
the normal banking of daily life.
1) A leading bank for providing the agriculture loans to the low scaled formers by its Punjab
wide 161 branches.
2) The availabilities of productive loans to the formers of co-operative societies for seeds,
pesticides and fertilizers on easy conditions.
5) The loan up to 5 lac for co-operative societies for the increment in the industrial production.
8) The launching of gold loan for general public and agriculture purposes at tehsil level.
Board of directors:-
Following members constitute the board of directors for general management of the bank.
The board of directors has 39 members. A nominee of the federal bank for cooperative attends the
meetings of the board of directors as observer. The board of directors elect a vice president from amongst
its members. The board of directors may delegate all or any of the powers for proper and efficient
conduct of the business of the bank to the president, vice president, general manager, any other
responsible officer of the bank or a sub committee appointed by board of directors.
Core Values:-
• Integrity
• Excellence in Service
• High Performance
Competitors:-
Organizational structure:
Branch Hierarchical Flow
Punjab Provincial Cooperative Bank Ltd :
Branches 159Branches in 2008
Operational zones:-
Lahore Zone RawalPinidi Zone
It’s mean cash and deposit department. The jobs of this department are
following:
i. Account Opening
ii. Account Closing
iii. Cheque Book Issuing
iv. Types of Account
When a customer wants to open an a/c he comes in this department of the bank, and submits an
application for opening an a/c. The officer of this department gives him an application form. This
application form is useful for all accounts.
i. Individual Account
ii. Joint Account
iii. Proprietorship
iv. Limited Company
v. Partnership/Firms
vi. Club, Society, Association of Persons Trust
Necessary information, which a bank requires;
a. Name
b. Address
c. Telephone #
d. Currency of Account (local or foreign)
e. Nature of Business
f. Country of Residence
g. Special Instruction Regarding the Account
h. Signature of the Applicant
i. Operating Instructions
j. Zakat Deduction
k. Details of other Banks Accounts
l. Introducer
Documents to be attached:
1. Attested Photo Copy of NIC/Passport of account holder, Proprietor, Partner,
Directors and Office Bearers as the Case may be.
a. Branch Code
b. Date
c. Account No.
d. Title of A/c
e. Special Instructions
f. Names
g. Signatures
h. Approved By
The customer fills this card and returns it to bank officer. For illiterate persons
thumb impressions are taken and two latest passport photographs shall be taken. This
specimen signature card is scanned in the computer system. So that whenever the
account holder cheque will come the bank officer will verify his signature to the
computer.
a. Date
b. S.No.
c. No. Of the leaves
d. A/c #
e. Title of the A/c (in block letters)
After this he makes a debit voucher and credit voucher.
Credit Voucher:
Credit vouchers show the income of the bank, which are charges of the issued
chequebook.
Debit Voucher:
Debit voucher is made to debit the customer account.
The amount of debit and credit vouchers depends upon the no. of the leaves of
chequebook. For one leaf bank charges 5 rupees. For PLS and current account
chequebook can be of 25, 50, 100 leaves. The bank officer sends the bank chequebook
to NIFT. And keeps voucher along with him.
Next day or in incoming days NIFT will issue the cheque book printed with:
b. Date
c. A/c #
d. Cheque #
e. Name
f. Title of Account
g. Amount in words & figures
NIFT keeps the record of these issued chequebooks. These cheques are sent to the
bank. NIFT also sends a summary of these cheques books containing the account
numbers and title of accounts. The bank also keeps records of these cheque books. The
bank officer receives these cheque books with clearing. He writes the title of account and
number of account at the first page. He brings out the cheque books slips and vouchers.
He fills the cheque book slips by seeing the numbers of cheque book leaves. He
enters these cheque books in computer system. He files the summary of the cheque book
in a separate file. However, big mills or companies who a number of cheque books at a
time need may present the more cheque book slips.
Presentation of Cheque:-
When cheque is presented to cash, bank officer checks that the cheque is duly filled,
Then after seeing this bank officer verifies the customer’s signature in computer by
S.S.C. and sees the credit balance of account holder. If he has more balance than the
presented cheque, he will pass it. The account holder will present it on the counter and the
cashier will again check the signature. It is the duty of the paying cashier to make payment to
that person.
Kinds of Cheque:-
i. Bearer Cheque
It is one on which the bearer is written after the name of the payee. It is payable to
the bearer/holder i.e. anyone who may present it at the bank. The bank is under no
ascertained that the payment is made to the right person.
It is cheque made payable to a certain person. It is the cheque on which the order is
written after the name of the payee. If a cheque is made payable to a certain person
without the addition of the word bearer or order thereto, it is regarded as an order cheque.
Only endorsement and delivery can transfer it.
Loose Cheque:-
If any customer forgets or leaves his cheque book at his home which is far away from the bank or
whatever the case may be, the customer applies to the bank for the issuance of loose cheque as he
does not have his cheque book with him and the money is urgently required, then this cheque is
called loose cheque. Bank keeps the cheque book labelled as loosed and issues a loose cheque to
the customer. The cheque is issued on written requisition.
PLS TDR A/C from 3 months to 5 years with different profit rates.
Initial deposit for account opening is Rs. 500 with no minimum balance requirement.
Most branches of Punjab corporative Bank offer lockers for lease, in a variety of sizes at very competitive
rentals. Locker facility is available to all customers maintaining minimum balance requirements in their
respective account categories. Lockers are placed in a secure environment with pleasant custodians to
assist customers.
Business related Rent Free Locker Facility may be allowed to the following CD A/C Holders.
1. An A/c Holder maintaining Min. Credit balance of Rs.0.3 M for the last one quarter - Small Locker
2. An A/c Holder maintaining Min. Credit balance of Rs.0.5 M for the last one quarter - Medium Locker
3. An A/c Holder maintaining Min. Credit balance of Rs.1.0 M for the last one quarter - Large Locker
Subject to availability in the branch where the A/c is maintained. Key Deposit and breaking charges to be
recovered provided however, that A/c holder is not availing
Trade Finane:-
COOPERATIVE LOANS:-
• Agricultural Production
• Development Loans
• Pledge of Gold for Agriculture
• Information Technology
• Livestock Micro-Financing
• Livestock Project Financing
• DSCs / SSCs for Agriculture Purposes
• Women Cooperative Societies
• Auto Financing
• Other Schemes
STAFF LOANS:-
• It was being disbursed on the funding of State Bank of Pakistan (SBP) and on the guarantee of
Government of Punjab. The SBP was sanctioning an annual credit line to be remunerated on GOP
T-bills rate. For the financial year 2007-08, SBP has not sanctioned annual credit line of
Rs.8,000 million due to which we are accommodating the small farmers from our own sources.
The current lending rate is 16% p.a.17% in case of default
This was earlier granted on the funding of Federal Bank for Cooperatives (under liquidation) and thereafter
from SBP funding and now from own resoruces. The salient features / procedure of the finance are as under:
-
For purchase of Agricultural Implements (Tractor-Actual Price, Thrashers. 150000/-, Rotavetor, Rs.70,000,
Discherro,50000,Trolley, Rs.100000/- , Meat & Milch Cattle, Livestock and for installation of Tube
well/Turbine.
Period of Finance upto 5 years repayable in half yearly instalments with Mark-up @ 18% p.a in case of
defualt 20% p.a.
Loaning provided to a Member through respective affiliated registered Cooperative Society on fixation of
Special MCL for the purpose by the Coop: Department duly approved by the Bank Management as well as
special MCL fixed by the society itself for incurring outside liability upto a maximum of Rs.5.00 lacs.
Borrowing member required to deposit margin money @ 20% of the loan demand, with the Bank.
Loan advanced against Security of immovable property / agri. Land having value double the amount of loan
demand either through registered Mortgage Deed or Aarh Rehan or Agri. Pass Book System under the Law
of Land.Minumum Security 40 Kanals of AgriLandd irrigation or 100 kanals of barrani Land.
Complete Loan Documents with quotations, on the choice of Borrower, to be provided with the Loan
Application duly recommended by the field staff of the Coop: Department.
Sanction of loan Branch Level and after having CIB Report from the SBP.
Delivery of Tractor through Local Dealer approved by the company and for implements, etc., Issuance of
Pay Order in favour of the supplier.
Tractor/implements required to be got comprehensively insured from any of the approved Insurance
Company on the panal of Bank for the five year at time of issuance of finance and delivery of tractor.
For the convenience of small farmers a Booklet (in “Urdu”) containing Procedure and relevant loan
documents available in all Branches.
MTF for members of Cooperative Societies up tp Rs.20,00,000/- @ Rs.5,00,000 per borrower under
General Permission of MCL of RCS for a period of 5 years repayable in 10 equal installments against 5
acre per borrower.
Development Loans for non-member Agriculturists:
On the emphasis of Government of Punjab for liberal financing towards agricultural sector, PPCBL
introduced this scheme for individuals (non-members). The salient features are: -
Admissible to Individual farmer for purchase of Farm Machinery, viz. Tractor, Tubewell, Thresher,
Trolley, etc. and Transport for carriage from farm to market (agri. purpose).
Security through Agricultural Pass Book system or registered mortgage of immoveable property (rural or
urban). Minmum Security 40 Kanals
Disbursement within 15-days.
On the directions of SBP, the Bank is providing micro-financing facility against pledge of Gold / Gold
Ornaments preferably for agricultural purposes to non-members individuals on easy terms. The salient
features are: -
Loaning facility provided for agricultural/personal needs/ purposes to any Individual against pledge of
Gold/Gold Ornaments upto 60% of the value duly assessed by the registered Shroof/Goldsmith.
Period of advance is upto 6 months at mark-up rate of 16%. Mark-up payable at the end of each half year.
Branch Manager and Acro (Credit Commitee) has a sanctioning power upto Rs.30,000/-,
Comperehensive Insurance of Net Value of Gold from any of the approved insurance company on the
panel of the Bank
As per directives of the State Bank of Pakistan, the Bank is extending micro-financing for Promotion of
Information Technology.
The salient features are:
Citizen of Pakistan & resident of Punjab and permanent employee of Govt. Departments / Organizations
(selected).
The net maximum amount of finance Rs.8,00,000/- per society and Rs.1,00,000/- per borrower.
Margin money 10% of the purchase price of cattle.
Period of finance three years @ mark-up of 13% p.a.
One time documentation for three years.
The society/beneficiary entitled for any number of withdrawals and repayments (multiple operation),
within the limit during three years with annual clean up from the date of first withdrawal, on a date
mutually settled.
Individuals:-
The Net Maximum amount of finance Goat Sheep & Cattle Rs. 200,00/- per borrower of two acres
security , in case of one acre Rs.100,000/-
Peroid of finance one year
Mark up Rate: 15.80%
Repayment in half yearly or quarterly equeal installments or culture and with in the one year as per choice
of borrower in case of Meat and Milch Cattle.
The Security double the value of net finance either in the shape of agriculture land through Agriculture
Pass Book System or Urban property through registered mortgage. However, the borrowers of rural areas
must be the owner of 1-2 acres of agriculture land.
Case processing fee Rs 500/-
• During the 2004 the Bank signed a Memorandum of Understanding with Livestock &
Dairy Development Department, Government of Punjab in presence of the Chief
Minister, Punjab. The scheme aims at extending loans to farmers for the development of
Livestock and Dairy Development Projects in the Punjab. Under this arrangement,
District Officer (Livestock) would act as Focal Person who would not only provide
feasibilities free of cost but would also provide animal health coverage before and after
the implementation of the project. Both members of cooperative societies and individuals
can borrow funds from this scheme for specified projects.
The Bank is also providing loans to Non-Agricultural / Industrial Societies, the biggest venture in
industrial loaning is the Pakistan Cycle Industrial Cooperative Society Ltd., the manufacturer of
Rustam & Sohrab Cycle / Motorcycle.
. Eligibility
You may apply for PPCBL Home Loan.
If your age is between 23 and 60 years at the time of application. (Subject to maximum age of 65 at
the time of maturity).
If you are in continuous employment in a permanent position for the last 2 years or more.
OR
If you have existing 3 years (or more) of business or professional experience.
If your gross annual income is Rs: 240,000/ — or more [Your spouse’s income (up to 50%) can also
be combined with yours].
You may apply for PPCBL Home loan for a minimum period of 3 years and a maximum
repayment 20 years. (conditions applied)
Salaried Persons
2. Documents
Basic Documents:
• Copies of complete chain of title documents of the property being offered (If identified)
• Hassle-free processing
• Personalized service
• Low Down payment (as low as 10%)
• Flexible tenors - up to 5 years
• Competitive Insurance rates
• Advance Booking Facility
• Early Settlement Option (Nominal Charges apply)
• Co-Borrower Facility
• No hidden charges
• Lowest down payment in town.
At PPCBL we believe in sharing the joy of our customers by giving them benefits,
which are aimed at making customer’s car buying experience an exciting event.
Our highly trained executives will take care of your financing requirements.
The only thing you need to worry about is choosing the car and its colour.
2. Eligibility:-
You may apply for PPCBL Car Loan to purchase a brand new car:
• Pakistani National Identity Card holder.
• Over 20 years of age (Maximum 60 years in case of salaried.
• Salaried , of Punjab Govt. Employees.
3. Documents:-
• 2 recent passport size photographs.
• Copy of Computerized National Identity Card.
• Last six months bank statement
• Most recent Salary Slip/ Copy of Registration with respective body (if applicable)
• NTN certificate (in case of advance payments).
• Salary certificate (for salaried individual).
• Co-borrower’s NIC copy (if the car is to be in the name of the co-borrower
Financial analysis of organization:
Balance Sheet
INCOME STATEMENT
Assets 2008 2007
Cash and balances with treasury banks 10,685,057 14,210,302
Balances with other banks 2,178,455 1,927,662
Lendings to financial institutions 633,333 2,450,000
Investments 22,711,980 73,461,695
Advances 131,731,158 133,893,585
Operating fixed assets 3,471,838 3,252,759
Deferred tax assets 8,388,162 -
Other assets 6,109,137 5,805,097
185,909,120 235,001,100
Liabilities
Represented By
5,287,974 4,230,379
5,056,520 15,110,453
2008 2007
(Rupees in ‘000)
Basic (loss) / earnings per share (after tax) - Rupees (19.02) 8.41
Diluted (loss) / earnings per share (after tax) - Rupees (19.02) 8.41
Operating Results
Balance Sheet
RATIO ANALYSIS:
Ratio analysis is used to calculate the profitability, liquidity/leverage etc. of the firm. From ratio
analysis it is possible to predict future variances.
Following ratios of PPCBL has been calculated:
Profit before tax to total income % 59.19 66.11 67.89 53.71 (316.29)
Markup/ Interest cover ratio times 5.08 2.79 1.94 1.65 1.32
Profit after tax to total income % 46.65 49.16 54.16 49.27 (189.03)
Market value per share Rs./share 65.9 102.45 101.25 97.8 11.50
Gross spread ratio defines the total spread of interest between borrowing and
lending.Spread: Difference between funded revenue as a percentage of average earning assets
and the cost of funds as a percentage of average paying funds.
The higher the spread the higher will be the profit margin.
GSR= Rev/CGS
GSR= (Mark-up earned – Mark-up Expense)/Mark-up earned
GSR is 2nd highest all over the globe in Pakistan.
GSR of the bank is decreasing because of the decrease in margin, a SBP rise up the interest rates
on the deposits.
80
70 72
60
56
50
40 %
35
30
20 21
10
6.42
0
2004 2005 2006 2007 2008
100
59.19 66.11 67.89 53.71
50
0
-50 2004 2005 2006 2007 2008
-100
%
-150
-200
-250
-300
-316.29
-350
5 5.08
3 2.79 times
2 1.94
1.65
1.32
1
0
2004 2005 2006 2007 2008
100
0
2004 2005 2006 2007 2008
-50
%
-100
-150
-200 -189.03
-250
0.14
0.12 0.12
0.1 0.1
0.09
0.08
0.07 tim es
0.06 0.06
0.04
0.02
0
2004 2005 2006 2007 2008
3
2.65 2.76
2.5 2.49
2.22
2
1.5
%
1
0.5
0 -0.05
2004 2005 2006 2007 2008
-0.5
times
12
10 10.23
9.31
8 7.71
7.25
6
times
4
0
-0.6
2004 2005 2006 2007 2008
-2
80
65.9
60
EPS
40 DIVIDENT
VALUE
20
9.08 10.01 13.14 10.51 11.5
4 5.2 3.25 3.5
0 0
2004 2005 2006 2007 2008
-20 -19.02
-40
C.A
14
12.83 12.78
12
10 10.09 9.69
8
C.A
6
4
2 1.92
0
2004 2005 2006 2007 2008
SWOT Analysis (Introduction)
SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT
analysis is careful evaluation of an organization’s 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.”“The overall evaluation of a
company strengths, weaknesses, opportunities and threats is called SWOT analysis.”
2. Neutralizing it threats.
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.
i. Strenght
ii. Weaknesses
iii. Opportunities
o Net work in foreign countries.
o Leasing Business.
o Gain Econmic of scale.
o E- Banking.
iv. Threats
o Golbalization.
o Increase in competition.
o Political instability in the country .
o Lack of consistency in Government Ploicies.
Conclusion:
At present there is no such organization in the world that is free from problem and challenges. Every
concern has to strive and struggle a lot to be more profitable and to get more competitive edge.
The management of PPCBL is taking strategic steps to enable the bank to emerge as a strong and
progressive institution. It is continuing to make efforts to refine its products and operations to make them
more compatible. New deposit schemes have been introduced and an action plan to maintain revenue
growth in future.
As the business and economic conditions remain uncertain, PPCBL continues to develop the new
products like it has been doing in past.
Recommendations:
Recommendations
After doing internship of two months in PPCB Limited, I have analyzed some problem in the Bank.
Following are my recommendations:
Web Site:
Punjab provincial cooperative bank limited has the web site, which has not been updated. The web site is
very less informative and it won’t leave a good impression on the visitor. So I suggest that it should be
updated to meet the requirements of the visitors.
Misdistribution of work:
In Bank of Punjab, there is misdistribution of work; some people are over burdened with the work. So I
suggest that there should be fair distribution of work in all the departments.
Participative management:
Participative management concept should be adopted, where ideas from the employees should also be
taken, not only for developing products but also on service, efficiency, employee morale etc. in order to
improve them.
Split Units:
Bank of Punjab is a very well established bank, but the number of air conditioners they have in the whole
bank is very less. Bank should increase the number of its Split units, because summer stays longer in
Lahore.
Training programs
BOP should introduce more training programs for their employees. It will help less educated and less
experienced staff to grow and be a valuable part of the bank.
Biblography:
www.ppcbl.com.pk
www.google.com
www.yahoo.com
PPCBL makes Rs1.92b recovery
Lahore—Punjab Provincial Cooperation Bank Limited (PPCBL) has made recovery of over Rs 1.92 billion of Rabi Crop 2009-10
till July 12 with the cooperation of Cooperative department. PPCBL sources said the bank is issuing loan of Rs 3 billion for the
Kharif Crop 2010.
Registrar Cooperatives Punjab/ Chairman Bank Board of Director Maqsood Qadir Shah has directed the field staff of the bank
and cooperative department to achieve the target of issuance loan and recovery so that maximum number of farmers could get