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The Bank of Punjab 1

THE BANK OF PUNJAB MAIN BRANCH


LAHORE

Internship Report
ON BUSINESS PRACTICES AT THE BANK OF PUNJAB

SUBMITTED TO:
MADAM AYESHA AZIZ

SUBMITTED BY:
RAO ISHFAQ AHMAD
CIIT/SOO4-MBA-028/LHR

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The Bank of Punjab 2

ACKNOWLEDGEMENT

I am really pleased here to acknowledge the sheer efforts and extreme of numerous
people, those who have provided me their relentless service in the completion of my
internship report on “Business practices at The Bank of Punjab”.

I would like to express my gratitude to my advisors in The Bank of Punjab who support
me to under stand the working in the bank, during my internship. They really helped me
a lot to gain practical knowledge about general banking and corporate banking. I am
also grateful to Mr. Mazhar (Manager) and all my supervisors during internship period.
Without their guidance, this exercise of internship would not have resulted in a success.

Secondly I would like to thank my advisor Madam Ayesha for her assistance and
inspiring attitude. I am highly obliged to my respectable advisor and state my gratitude
for her valued guidance and her concern about my internship.

Rao Ishfaq Ahmad

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The Bank of Punjab 3

DEDICATION

I dedicate this report to my loving


parents without their guidance I
would have gone astray.

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The Bank of Punjab 4

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Table of Content

THE BANK OF PUNJAB MAIN BRANCH LAHORE.......................................................1


INTERNSHIP REPORT...............................................................................................................1
EXECUTIVE SUMMARY...................................................................................................6
INTRODUCTION TO THE BANK OF PUNJAB...............................................................7
HISTORY.........................................................................................................................7
VISION.............................................................................................................................7
MISSION STATEMENT...................................................................................................8
BANK PROFILE................................................................................................................9
BOARD OF THE DIRECTORS..........................................................................................9
MANAGEMENT............................................................................................................. 11
ORGANIZTIONAL CHART.............................................................................................14
BRANCH HIERARCHY............................................................................................................. 16
COMPARATIVE ANALYSIS ..........................................................................................17
BANKING INDUSTRY ............................................................................................................. 17
COMPARISON WITH OTHER BANKS.............................................................................................17
CURRENT FINANCIAL POSITION OF THE BANK OF PUNJAB..............................................................23
SIX YEAR AT GLANCE..................................................................................................28
BUSINESS PROCESS ANALYSIS................................................................................30
ATM Facility..............................................................................................................30
Online banking..........................................................................................................32
Consumer Financing................................................................................................33
Agriculture Financing................................................................................................48
Corporate Financing.................................................................................................48
Trade Services.........................................................................................................49
OBECTIVES OF INTERNSHIP.......................................................................................53
LEARNING AS A STUDENT INTERN............................................................................55
DUTIES..............................................................................................................................55
NEW KNOWLEDGE ACQUIRED................................................................................................. 56
SWOT ANALYSIS...........................................................................................................62
RECOMMENDATIONS .................................................................................................65
CONCLUSION............................................................................................................... 65
BIBLIOGRAPHY.....................................................................................................................66
GLOSSARY......................................................................................................................... 67
APPENDIX.......................................................................................................................... 70

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EXECUTIVE SUMMARY

This report is about The Bank of Punjab, its history, and the functions of the bank.
This report contains detail about what I have learned in my eight-week internship in
The Bank of Punjab. It starts with the short history and background and brief
introduction about the management of The Bank of Punjab. The vision of the bank
along with its mission and existing status has also been discussed. This report
contains detail about “business practices in The Bank of Punjab.

The purpose of this exercise was to learn while working in the practical field.
Specially, the knowledge related to the General Banking, foreign exchange and
advances. It has really helped me observe to what extent the bookish knowledge is
being practiced in real field.

This report contains the Comparison of other banks with the bank of Punjab, current
financial position of the bank, the business process of the bank and all my learning,
during the internship period.

Rao Ishfaq Ahmad

COMSATS Institute of Information Technology Lahore


The Bank of Punjab 7

Introduction to The Bank of Punjab

The Bank of Punjab is working as a scheduled commercial bank with its network of 254
branches at all major business centers in the country. M/S PACRA has awarded the
Bank with the credit rating AA- for Long term and A1+ for Short term, based on its
financial results for the year ended as on 31st December 2004. The Bank provides all
types of banking services such as Deposit in Local Currency, Client Deposit in Foreign
Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture.
The Bank of Punjab has indeed entered a new era of science to the nation under
experience and professional hands of its management. The Bank of Punjab plays a vital
role in the national economy through mobilization of hitherto untapped local resources,
promoting savings and providing funds for investments. Attractive rates of profit on all
types of deposits, opening of Foreign Currency Accounts and handling of Foreign
Exchange business such as Imports, Exports and Remittances, Financing, Trade and
Industry for working capital requirements and money market operations are some
facilities being provided by the Bank. The lending policy of Bank is not only cautious and
constructive but also based on principles of prudent lending with maximum emphasis on
security. As agriculture is considered as backbone of our economy the Bank of Punjab
has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.

HISTORY

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. It is principally engaged in commercial banking and
related services with its registered office at 7-Egerton-road Lahore.

VISION

To be customer focused bank with service excellence

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MISSION STATEMENT

To exceed the expectations of our stakeholders by leveraging our


r e l a t i o n s h i p w i t h t h e G o v e r n m e n t o f P u n j a b a n d d e l i v e r i n g a complete
range of professional solutions with a focus on programmed driven products & services
in the Agriculture and Middle Tier Markets through a motivated team.

OUR VALUES

Our Customers as Our first priority

Profitability for the prosperity of our stakeholder


that allows us to constantly, improve
and succeed

Corporate social to Enrich the Lives of community where


responsibility we operate

Recognition and for talented and high performing


reward employees

Excellence in every thing we do

Integrity in all our dealing

Respect for our customer and each other

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Bank Profile

BOARD OF The DIRECTORS

Mr. Shahzad Hassan Pervez

Chairman

A Serving Grade-22 Govt. Officer, having wide management &


administrative experience. Last assignment Secretary Ministry of
Science & Technology Government of Pakistan.

Mr. Hamesh Khan

President

Professional Banker. MBA from USA.

Mr. Salman Siddique

Director

Serving as Secretary Finance - Government of Punjab

Mr. Sikandar Mustafa Khan

Director

An engineer by profession – Chairman & Chief


Executive Millat Tractors Limited.

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Mian Muhammad Latif

Director

A prominent Industrialist- Chenab Group.

Syed Salman Ali Shah

Director

An Economist by profession holding PhD (finance) from


Kelley School of Business Administration, Indiana
University, USA.

Mr. Shehzad Ali Malik

Director

A leading Industrialist from the Guard Group of


Companies.

Mr. Gohar Ejaz

Director

Chief Executive Ejaz Group of Companies.

Mr. Qaisar Zulfaqar Khan

Director

A renowned agriculturist. Graduate from Cambridge.

Mr. Jahangir Siddiqui

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Director

A prominent Investment Advisor.

MANAGEMENT

President Secretariat
Mr. Hamesh Khan President
Mrs. Anjum Amir Principal Staff Officer
Information Technology Division
Mr. Anis Iqbal E.V.P. / General Manager
Mr. Abdul Rashid Khan S.V.P. / In-charge

Administration Division
Mr. Aamir Iftikhar AhmedGeneral Manager
Mr. Riaz Akhtar E.O.C. / Chief Manager

Operation Division
Mr. Javed Ahmed
E.V.P. / General Manager
Khawaja
Mr. Athar Aziz Dogar O.O.C. / Chief Manager
Mr. Sajid Arif Nomani E.O.C. (Consultant)

Finance Division
Mr. Nadeem Amir Officiating General Manager
Mr. Rashid Mehboob Financial Analyst
Mr. Nadeem Amir A.V.P. / Chief Manager

International & Treasury Division


Mr. Muhammad Salim E.O.C. / General Manager
Mirza
Mr. Babar Saeed Khan A.V.P. / Manager (International Division)
Mrs. Saba Farrukh A.V.P/Chief Dealer

Audit & Inspection Division


Mr. Muhammad Hanif Head
Mr. Raza Saeed V.P

Credit Risk Management Division


Mr. Aziz Ul Hameed E.O.C. / Country Risk Manager

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Mr. Abid Mahmood V.P


Mr. Hafeez Ud Din V.P
Mr. Tariq Javed Butt V.P

Special Asset Management Division


Mr. Shaheen Nazar E.V.P / General Manager
Qureshi
Mr. Bilal Husnain E.O.C
Chandan

Liability & Consumer Products Development Division


Mr. Mahmood Sadiq E.O.C. / General Manager
Khan
Mr. Haji Muhammad V.P
Aslam

Commercial Asset Development & Marketing Division


Mr. Haroon Aziz E.O.C. / General Manager
Mr. Sajjad Hussain S.V.P

Products / SME Division


Mr. Muhammad Shoaib General Manager
Qureshi

Corporate Banking Head


Mr. Muhammad Hassan E.O.C. / Corporate Head, Faisalabad /
Khan Multan
Mr. Khalid Qaiyum E.O.C. / Corporate Head, (North) Islamabad

Trade Processing Centre


Mr. Muhammad Hanif E.O.C. / Executive In-charge
Mr. Tajammal Hussain A.V.P

Officer’s Training Institute


Mr. Naveed Hafeez S.V.P. / Administrator
Shaikh
Mr. Tariq Mahmood A.V.P
Mughal

Law Department
Sirdar Ahmed Jamal Legal Consultant / Coordinator
Sukhera
Ms. Zubia Ramzan In-charge

BOP 1st Punjab Modaraba

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Mr. Salman Saeed Chief Executive


Mr. Muhammad Salman Corporate Secretary

Agriculture Credit Department


Mr. Muhammad Javed S.V.P. / Head
Muzaffer
Mr. Moazzam Mahmood E.O.C / Marketing Coordinator
Maneka

Shares Department
Mr. Muhammad Iqbal A.V.P. / Assistant Secretary

Compliance Cell
Qazi Muhammad Latif E.O.C. / Chief Compliance Officer

Regional Office Lahore


Mr. Zalmai Azam V.P. / Regional Chief
Mr. Azhar Nawaz A.V.P. / Regional Manager
Regional Office Rawalpindi
Mr. Amir Mumtaz A.V.P. / Regional Chief
Mr. Abdul Salam Regional Manager
Regional Office Faisalabad
Mr. Amir Ali Sadique V.P. / Regional Chief
Mr. Saeed Ahmad Rahi Regional Manager
Regional Office Gujranwala
Mr. S.M.Atif E.O.C. / Regional Chief
Mr. Sarfraz Ahmad Regional Manager
Regional Office Multan
Mr. Naeem ul Hassan A.V.P. / Regional Chief
Mehmood
Mr. Ijaz Iqbal Regional Manager
Regional Office Karachi
Mr. Amir Hassan A.V.P / Regional Chief
Mr. Inam ud Din Akbar Manager

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ORGANIZTIONAL CHART

The Bank of Punjab


Organizational chart

Chairman & Board


of Directors

Managing Director

GM
GM GM Admin GM GM GM GM SME Country
Special GM IT.
Finance Operation Liability Treasury Div. Risk Mgr.
Mgt. Div.

Regional
Regional Regional Regional Regional Regional
Office
Office Lahore Office Multan Office FSD. Office RWP. Office Karachi
Gujranwala

254
Branches
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LAHORE REGION

In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are
dealing in foreign exchange. In Lahore region regional office is at 7 Egerton roads
Lahore.

FAISALABAD REGION

In Faisalabad region The Bank of Punjab have 38 branches, out of which 4 branches
are dealing in foreign exchange.

GUJRANWALA REGION

In Gujranwala Region, there are 45 branches. In this region 5 branches are providing
foreign exchange banking facility.

RAWALPINDI REGION

In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign


exchange.

MULTAN REGION

In Multan region Bop have 60 branches, out of which 7 branches are providing the
foreign exchange services facility.

KARACHI REGION

There are only four branches in this region. All these branches are dealing in foreign
exchange.4 branches

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Branch hierarchy
Main Branch Lahore

Chief
Corporate

Manager Branch
Forex. Manager
Advances Manager

Acc.
Cash/Dep Accounts Advances Remittanc Consumer Forx.
opening
osit Dept. Dept. Dept. es Dept. Finances Dept.
Dept.

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Comparative Analysis

Banking Industry

Banking is one of the most sensitive businesses all over the world. Banks play very
important role in the economy of a country and Pakistan is no exemption. Banks are
custodian to the assets of the general masses. The banking sector plays a significant
role in a contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance. It is purchase of car or building
of a home, banks are always there to provide the services. It is playground or any
educational or healthy societal activities the money of banks nurtures them. It is an
industrial project or agricultural development of the country the sponsor-ship of banks is
very much involved. Banks play very positive and important role in the overall economic
development of the country.

Pakistan has a well-developed banking system, which consists of a wide variety of


institutions ranging from a central bank to commercial banks and to specialized
agencies to cater for special requirements of specific sectors. The country started
without any worthwhile banking network in 1947 but witnessed phenomenal growth in
the first two decades. By 1970, it had acquired a flourishing banking sector.

Comparison with other banks

Nationalization of banks in the seventies was a major upset to domestic banking


industry of the country, which changed the whole complexion of the banking industry.
With irrational decision at the top all the commercial banks were made subservient to
the political leadership and the bureaucracy. Specialized banking institutions were
already working in the public sector. The new accountability paradigm changed the
business ethics in the banking industry, and with this change started the disaster.

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Nationalization of banking industry was accompanied by violent changes in the external


value of rupee. The commercial banks thus lost their assets management equilibrium,
initiative and growth momentum. They ceased to be a business concern and became
big bureaucracies. This was accompanied by indiscreet loaning under political pressure.
They suffered from three terminal diseases: non-performing loans; higher intermediation
cost.
The era of nineties was the climax of privatization, deregulation and restructuring in the
domestic banking industry and financial institutions. The Muslim Commercial Bank was
the first bank to privatize. Followed by Allied Bank limited, United Bank Limited and
now the Habib Bank Limited have been privatized. One thing good for that particular
period was the recruitment of fresh officers in the domestic banking industry through
well-organized policies of Banking Council. With the decay of Banking Council there
was flood of insincere, nonprofessional, incompetent candidates directly appointed/
recruited in all the domestic banks of the country.

Public sector banks

National Bank of Pakistan NBP


First Women Bank Limited FWB
The Bank of Khyber KB
The Bank of Punjab BOP

The government of Pakistan permitted small private sector banks to operate, which
indulged in doubtful policies to promote business. The public sector banking, which
constituted the backbone, thus continued to suffer because of their approach, size and
carried over liabilities. Mehran Bank is the prime example of that kind of lax banking in
the country, which ultimately merged into National bank of Pakistan i.e. last resort of
domestic banking industry.

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Local Private Banks

Askari Commercial Bank Limited


Bank Al-Falah Limited
Bank Al Habib Limited
Bolan Bank Limited
Faysal Bank Limited
Metropolitan Bank Limited
Platinum Commercial Bank Ltd
Prime Commercial Bank Limited
Saudi Pak Commercial Bank Ltd
PICIC Commercial Bank Limited
Soneri Bank Limited
Union Bank Limited
Muslim Commercial Bank Limited
Allied Bank of Pakistan
Union Bank Limited
Mashreq Bank

In the meanwhile, western banks started entering into the business. They, with the
support of ruling elite, concentrated on the big business, leaving the routine business to
the local banks. This reduced the profitability of the local banks.

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Foreign Banks

ABN Amro Bank


Al Baraka Islamic Bank
American Express
The Bank of Tokyo Mitsubishi
CITI Bank
Credit Agricole Indo Suez
Deutsche Bank
Doha Bank
Emirates Bank
Habib Bank A. G. Zurich
Hong Kong Shangai Banking
Corporation
IFIC
Mashreq Bank PJSC
Oman Bank
Rupali Bank
Standard Chartered Bank

Special Banks

Zari Tarqiati Bank Ltd.


Industrial Development Bank of
Pakistan
Punjab Provincial Cooperative Bank
Limited

Comparative Analysis of Domestic Banking Industry of Pakistan (Rs. million)

Bank Deposit Advances Investments


ACB 51,732 30,035 26,759
BAH 34,240 23,775 18,831
BOP 23,767 6,621 8,295
BB 7,761 3,298 1,328
FB 24,554 21,935 6,842
UNION 328,182 167,523 142,877
BANK

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KB 2,640 490 2,118


MB 5,079 3,532 856
Metro 28,515 19,444 15,013
MCB 182,706 78,924 89,610
NBP 362,866 140,547 143,525
PCB 21,155 10,876 10,306
PB 14,640 9,016 7,534
SPB 12,341 8,522 6,365
SB 20,545 11,378 9,844
UB 37,760 28,890 11,822
UBL 154,915 74,117 69,385

Comparative Analysis of Earning per Share of domestic Banking Industry of


Pakistan

Name of the Bank 1Q2003 1Q2004 Growth


Askari Comm. Bank 2.16 2.43 13%
Bank Al Habib 0.70 1.44 107%
Bank of Punjab 0.23 1.17 407%
Bolan Bank 0.07 0.10 43%
Faysal Commercial 1.91 1.39 -28%
Bank
KASB Bank 0.16 0.05 -68%
MCB 2.21 1.92 -13%
Meezan Bank 0.17 0.38 126%
Metropolitan Bank 1.09 1.68 54%
PICIC Commercial 0.56 1.05 88%
Bank
Prime Commercial 0.46 0.76 66%

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Bank
Saudi Pak Commercial 0.92 0.36 -61%
Bank
Soneri Bank 0.60 1.21 102%
Union Bank 0.54 0.62 13%

ACB
Growth Rate (earning per share)
BAH
BOP
500%
BB
400% FCB
KB
300%
MCB
200% MB
Metro
100%
PICIC
0% PCB
SPCB
-100%
SB
UB
Above chart show the growth of all local banks. The bank of Punjab has highest growth
among its local competitors.

Gross Assets of Different Domestic Banks of the Country (Rs. in Million)


Gross Assets

Bank 2002 2003


ACB 70,313 85,387
BAH 49,437 58,148
BOP 29,525 43,621
BB 10.595 11,726
FB 36,671 47,606
KB 4,037 8,990
MB 6,971 11,102

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Metro 41,381 58,982


MCB 235,139 272,324
NBP 432,803 471,860
PCB 27,982 40,134
PB 21,637 29,566
Total 955,907 1,139,446

Administrative Expenses of Different Domestic Banks

Bank 2002 2003


ACB 1,090 1,436
BAH 760 1.062
BOP 900 999
BB 380 375
FB 619 835
KB 204 327
MB 195 255
Metro 513 662
MCB 8,079 7,575
PCB 326 564
PB 512 719

Total Equity of Different Domestic Banks (Rs. Million)

Bank 2002 2003


BB 1,113 1,092
FB 4,120 5,080
KB 593 1,216
MB 1,476 1,637
Metro 2,074 2,753
MCB 6,314 7,726
NBP 14,279 18,134
PCB 1,323 1,784
PB 1,380 1,536

Current Financial position of The Bank of Punjab

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Director’s Report

On behalf of the Board of Directors, I am pleased to present accounts of the Bank of


Punjab for the half year ended June 30, 2005.

During six months period under review, Pakistan’s economy has gained significant
momentum with broad based economic growth in all sectors, which can be attributed to
consistent application of wide-ranging structural reforms, prudent macro economic
policies, confidence in private sector and financial discipline. Resultantly, the country
economic growth rate has exceeded eight percent and the economy has positioned
itself as the second fastest growing economy in Asia.
Manufacturing & agricultural sectors exceeding their targeted growth rates denote that
positive affects of growth in these important sectors of our economy shall be transferred
to other sectors of the economy augmenting their growth in periods to come.
It gives me immense pleasure to inform you that your bank has achieved an un-
precedented results for the six month period under review by earning highest ever profit
(both before & after tax) & EPS for any half yearly period since its operations. Profit
(before tax) of Rs.1,908 million indicates growth of Rs.791 million (71%) from last year
corresponding period figure of Rs.1,117 million. While Profit (after tax) of Rs. 1,531
million shows increase of Rs.644 million (73%) resulting in EPS of Rs.8.47. This
impressive performance is essentially ascribable to increase in net markup income of
Rs.789 million (101%) showing consistence in banks reliance on earning from its core
activity. Total asset base of the bank has risen by Rs.19,229 million to Rs.85,548
million. Advances have reached a level of Rs. 46,840 million, signifying growth of 19%
in high return asset of the bank from the figure on December 31, 2004, while deposits
have increased to Rs.70, 481 million showing growth of 29%. Bank.s determined focus
on improving its deposits base has resulted in phenomenal rise in deposits, which apart
from providing much required liquidity also lowered bank.s advances to deposits ratio to
a healthy & satisfactory %age of 66%.
Owing to splendid performance & sound financial footing M/s PACRA have upgraded
long term credit rating of your bank from A+ to AA- (double A minus) and short term

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rating from A1 to A1+ which is the highest benchmark in short term rating scale. Your
bank is in compliance with all regulatory rules & regulations including compliance with
recommendations of Basel-II Committee. Keeping in view excellent results the Board of
Directors of your bank have approved an interim dividend for its shareholders in the
form 30% stock dividend. Apart from remunerating stakeholders this bonus issue shall
make your bank in compliance with minimum paid-up capital requirement of Rs. 2,000
million well before specified date.
Management is consistently in pursuit of opportunities to improve the Bank.s
performance and improve operational aspects of the bank, both qualitatively and
quantitatively, benefits of which shall accrue in future.

We extend our utmost appreciation to the management for their record performance.
The Board of Directors is also grateful to the Government of Punjab for its consistent
support, State Bank of Pakistan for its guidance, valued customers for their patronage
and business and to its staff for their untiring effort to make the organization a success.

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THE BANK OF PUNJAB


BALANCE SHEET AS AT JUNE 30, 2005 (UN-AUDITED)

June December
30, 2005 31, 2004
ASSETS Note (Rupees in thousand)

Cash and bank balances with treasury banks 7,944,933 5,579,566

Balances with other banks 4,593,346 2,118,242

Lendings to financial institutions 7,867,739 1,019,488

Investments 5 14,587,620 16,197,505

Advances 6 46,840,452 39,438,923

Other assets 2,021,944 1,277,201

Operating fixed assets 1,692,930 689,486


85,548,964 66,320,411
LIABILITIES

Bills payable 333,479 267,113

Borrowings from financial institutions 3,027,676 2,831,605

Deposits and other accounts 70,480,955 54,724,311

Sub-ordinated loans - -

Liability against assets subject to finance lease 61,989 81,795

Other liabilities 743,702 567,540

Deferred tax liability 1,373 8,964


74,649,174 58,481,328
NET ASSETS 10,899,790 7,839,083

REPRESENTED BY

Share capital 1,807,476 1,506,230

Reserves 3,011,642 2,770,645

Unappropriated profit 1,132,764 143,590


5,951,882 4,420,465

Surplus on revaluation of assets 4,947,908 3,418,618

Contingencies and commitments 7


10,899,790 7,839,083

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Six year at glance

Profitability related ratios

Profitability Ratios
2004
10
8 2003
6 2002
4 2001
2 2000
0
Income/ Earning Average 1999
Expenseper share toatal
Ratio assets
turnover

Balance sheet & Relevant Ratios

60000
50000
40000
Rs. in m 30000
Advances
20000
Deposits
10000
0
2004 2003 2002 2001 2000 1999
Years

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The Bank of Punjab 29

Advances to deposit ratio

80
70
60
50
40
%
30
20
10
0
2004 2003 2002 2001 2000 1999

Capital Adequacy ratio

20

15

10
%

0
2004 2003 2002 2001 2000 1999

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B u s i n e s s p ro c e s s a n a l y s i s

SERVICES

The Bank of Punjab provide the following services to its customers

ATM Facility

The Bank of Punjab provides ATM Card facility to its customer, using M net system, giving
to customer 24-hour access to their accounts from any ATMs.

Safety Tips
Guard Your Card

 To avoid any damage keep your Online Cash ATM card in a safe place.
 Sign on the back immediately after receiving your ATM card.
 Never write your PIN or share it with anyone including the bank staff.
 Don’t use your phone number or other personal information’s like your date of
birth etc. as PIN.
 You can make maximum of three PIN entries (i.e. two entries in case you
enter the wrong PIN first time) after which your card will be captured by the
ATM machine.

Be Bright

 In case you need to use an ATM after dark always choose an ATM, which is
well lit.
 It is advised to retain the receipts until you match them against your account
statement.

Stay Alert

 It is safe to check your surrounding before using ATM. Visit another ATM if
the machine is obstructed or poorly lit.

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 Shield the screen and keypad so anyone waiting to use the ATM cannot see
your PIN or transaction.
 On realizing anything or someone suspicious in the area cancel your
transaction and leave right away.

Don’t Flash Your Cash

 Count your cash before leaving the ATM. Don’t try to count your money after
leaving the ATM or at any other insecure place.
 Make sure to keep your money, receipt, and card safe in the wallet after
making a withdrawal.

Act Immediately

 Pick your cash or reclaim your card in 20 seconds otherwise the ATM
machine will capture your card.
 Remove your card immediately because the ATM will only dispense cash
after you remove the card.

ATM Charges

Sr. Transaction Type Charges

1 Issuance of ATM Rs.250/- Per Card (except for


staff)

2 Annual Charges Rs.250/- ATM Card (except for


staff)

3 Cash Withdrawals “Self Customer +ATM” Rs.10/- per Transaction(except for


staff)

4 Cash Withdrawals “Self Customer + Rs.30/- per Transaction (except for

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The Bank of Punjab 32

Other ATM” staff)

5 Cash Withdrawals “Other Customer + Rs.15/- per Transaction (except for


Self ATM” staff)

6 Balance Query Rs.10/- per Transaction (except for


staff)

7 Mini Statement Rs.10/- per page (except for staff)

8 80 column Statement Rs.15/- per page (except for staff)

Online banking

The Bank of Punjab provides the Online Banking Facility to its account holders at 147
branches all over Pakistan. Cash may be accepted at a branch for crediting accounts at
another branch; a branch can also pay the Cheques by debiting the customer’s account at
another branch. There are 147 branches, which are providing online facility at this time.
Following facilities are available at Bank of Punjab’s Online Program for its customers:

1. Payments of Cheques.
2. Cash Receipts.
3. Transfer of Funds through Cheques or Cash between Branches.

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Online banking charges

Sr. Transaction Type Charges

1 For Transfer- Account to Account Rs.50


2 For Cash Transactions;

i) Up to Rs.500, 000/- 0.02% Min Rs.50/-

ii) Above Rs.500, 000/- to Rs.1000, 000/- Rs.100/- (Flat)

iii) Above Rs.1000, 000/-


Rs.200/- (Flat)
Note
1) (Staff members will be exempted)
2) (The charges will be applicable on depositor in
case of deposits and from payee in case of cheque
encashment)

Consumer Financing

Consumer financing refers to any financing allowed to individuals by financial institutions to


meet their personal needs. It gives individuals the ability to generate funds for their
personal consumption by borrowing against future income. It can range from financing a
vacation, to buying a car or a house, etc.

Consumer financing department of The Bank of Punjab is offering loans under the following
schemes

 BOP Quick Cash


 BOP Aasaish Loan
 BOP Car Loan
 BOP House Laon
 BOP Demand Finance

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BOP QUICK CASH

The Bank of Punjab QUICK CASH is a running finance facility provided to salaried
individuals through their bank accounts with the Bank for purchase of consumer items or
personal needs. The facility is an alternative to consumer financing offered by other banks
except it is R/F instead of Demand finance, which is more favorable to the borrower.

ELIGIBILITY CRITERIA

 Between 25 and 55 years of age


 Permanent employee of selected organizations having at least 3 years of
experience
 Computerized National Identity Card holder
 Net take home salary is Rs.15000/ - & above as mentioned on salary slip/
salary certificate (excluding benefits). For Govt. Employees net take home
salary is Rs.10, 000/-

Loan amount/Limit

Minimum amount is Rs.50, 000 and maximum amount is Rs. 200,000?

Tenure of Loan

Loan is available for one year, further renewable subject to satisfactory conduct of account.

Mark-up Rate

Most competitive rate in the market, which will be calculated on daily product basis, which
is

For senior Bureaucrats & Executive Average six months KIBOR+ 600BPS of
Corporate Client with floor rate of 14.5% p.a.
For all other client Average six month KIBOR + 600 BPS
With Floor rate of 16% p.a.

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Other Charges
Non-refundable fee Rs.450/
Processing Fee Rs. 1,850/
Documentation charges Rs. Actual

How Loan will be repaid

Loan will be repaid on Demand / Lump sum.

Pre-Sanction Document Requirements

 Application Form
 Copy of CNIC
 2 recent photographs
 Latest Salary Slip/Salary certificate on Company's letterhead
 Latest Copy of utility Bills
 Copy of service ID card
 6 months A/C statement showing salary being credited

Post-Sanction Document Requirements

 Two personal guarantees (expected incase of BOP employee)


 Financing Agreement
 D.P. Note
 Letter of hypothecation
 Post Dated Cheques
 White Documents
I. Letter Of authority
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment

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VI. Under taking regarding KIBOR

BOP AASHAISH LOAN

 0% Mark-Up (12 months)


 0% Down Payment
 FREE Home Delivery
 Financing Tenures of 18, 24 & 36 months are also available with nominal
markup
 Easily Affordable & Flexible Installments
 Quick Processing
 No Hidden Cost, No Insurance cost

Product

The Bank of Punjab Aasaish Loan is Demand finance facility for purchase of consumer
durable goods like TV, Refrigerators, Mobiles, Microwave Ovens, and Fans, Audio/Video
system

ELIGIBILITY CRITERIA

Salaried Person

 Confirmed permanent employee with one year experience


 Salary is routed through a bank account

Private Employees

In addition to the above mentioned condition:

 Having age between 25 and 59 years OR date of retirement, whichever is


earlier

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 Having minimum Take Home salary of Rs.10,000/-(Rupees Ten Thousand)


per month

Self-employed business / Professional

In addition to above condition

 Having age between 25 and 57 years (57 Years at maturity of facility).


 Minimum 2 years in current business
 Having minimum Net Income of Rs.15,000/-(Rupees Fifteen Thousand) per
month

Documentation required for processing

 Application form
 Copy of NIC/CNIC
 Customer Consent Form, if loan is Rs. 50,000/- OR above
The Govt. employees will submit the following two documents in addition to
documents mentioned in Serial # 1, 2 & 3

i. Latest Salary Slip


ii. Employer Certificate on letterhead

Additional requirements for private employees

The Private employees will submit the following three documents in addition to above
documents mentioned.

 Bank Statement for last 3 months


 Latest Copy of utility bills (Electricity & phone)
 Income Tax Return/Wealth Statement

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Additional requirements for self-employed professional/business Person

The Self-employed Professional/Businesspersons will submit the following


documents in addition to documents mentioned above following documents are attached.

 Bank Statement for last 6 months


 Latest Copy of utility bills (Electricity & phone) of residence
 Income Tax Return/Wealth Statement

Business related documents

 Documentary evidence in business or in the profession for the last 2 years


 Proprietorship Certificate/Partnership deed
 Copy of Professional Degree (For Professionals)
 Latest utility bills of current business address

Processing Charges: Rs.190/-

Documentation Charges: Actual

POST-SANCTION DOCUMENT REQUIREMENTS

 Financing Agreement
 D.P. Note
 Letter of hypothecation
 Post Dated Cheques
 White Documents
I. Letter Of authority
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority

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V. Letter of Installment

BOP CAR LOAN

 Easily Affordable & Flexible Installments


 Quick Processing
 Minimum Down Payment
 Minimum Insurance

Product

BOP car loan is a Demand Finance Facility to Purchase Brand new locally manufactured/
Assembled Cars for Personal Use

ELIGIBILITY CRITERIA

Salaried Person

Permanent employees of selected organizations with at least 3 years of service with a


minimum take home salary of Rs.15, 000. For Govt. Employees, Net take home salary is
Rs. 12,000/-

Self-employed

Business person and professional having minimum 3 years in current business

 Holder of computerized national identity card


 Between 25 and 57 years of age

Loan Amount

Minimum amount is Rs.200, 000 and maximum amount is Rs. 1,000,000

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Tenure of Loan

Loan is available for a period of minimum 3 years and maximum 5 years

Down Payment
Down payment is (10 to20%) of the value of the car

Mark up rate charged

Most competitive rate available in the market

For all customers average six moths KIBOR+ 375 BPS with
With Floor rate 10% p.a.

Other Charges

Non refundable fee Rs.450/-


Processing Fee/ Documentation charges Rs. 3,750/-
Registration Charges Actual

Insurance of the car

BOP has arranged insurance facility from its approved list of companies at discount rates
for the convenience of its customers. Insurance premium for the first year will be paid in full
up front with down payment and for subsequent years along with installment

Monthly Installment plan

L oan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.

We can easily calculate monthly installments by multiplying the loan amount with the
pricing factor:

Tenor of Loan Pricing Factor

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3 Years 0.03111
4 Years 0.02418
5 Years 0.02004

DOCUMENTS REQUIRED

For salaried individuals:

 Copy of NIC
 2 Recent Photographs
 Latest Salary Slip / Certificates on Comp. Letterhead
 Bank Statement for last 6 months
 Latest Copy of Utility Bills

For self employed business persons/professionals

 Copy of CNIC
 Two recent photographs
 Bank statement for the last I year of business account
 If not banking with us Banking certificate from branch manager stating Title,
Account number, Business entity, Maintained since, Authorized signatory
 Copy of Latest utility bills

Business Related Documents

 Documentary evidence in business or in profession for the last 3 years


 Income Tax return / wealth tax statement
 Proprietorship/Partnership Deed
 Articles & Memorandum of Association
 Latest copy of paid utility bills (Phone & Electricity) of current business
address

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 Membership/payment receipts of Chamber of Commerce/Trade Association /


Anjuman-e-Tajiran, if available

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BOP DEMAND FINANCE (CLEAN)

ELIGIBILITY CRITERIA

 Between 25 and 59 years of age


 Permanent/ confirmed GOVT/ private employee/ professional maintaining
salary account in any bank, having at least 1 years of experience
 Monthly installment should not exceed 40% of take home salary
 Computerized National Identity Card holder

Loan amount/Limit

Up to 25 take home salaries (Maximum Loan amount + Rs. 500,000/-)

Tenure of Loan

Loan is given for the period of 1year to 5 year

Mark-up Rate

Most competitive rate in the market, which will be calculated on daily product basis, which
is

For all other client Average six month KIBOR + 550 BPS
With Floor rate of 14% p.a.

Other Charges
Non-refundable fee Rs.450/
Processing Fee Rs. 1,850/
Documentation charges Rs. Actual

Pre-Sanction Document Requirements

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 Copy of CNIC
 Latest Salary Slip/Salary certificate on Company's letterhead
 Two personal guarantees with CNIC (exemption of BOP staff)
 Employer Certificate on company’ letter head with joining date, current
designation, length of service, gross salary & certificate from HR department
for perks
 Departmental Undertaking regarding salary rout though
 Data check
 Undertaking Regarding Payment of post dated cheques.

Post-Sanction Document Requirements

 Two personal guarantees (expected incase of BOP employee)


 Financing Agreement
 D.P. Note
 Letter of hypothecation
 Post Dated Cheques
 White Documents
I. Letter Of athoriety
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment
VI. Under taking regarding KIBOR

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HOUSE LOAN

Product

The Bank of Punjab house loan is long-term finance facility for purchase of house/flat or
construction of house on self-owned plot or for renovation/ home

ELIGIBILITY CRITERIA

Salaried Person

Permanent employees of selected organizations with a minimum take home salary of


Rs.20, 000

Self-employed

Business person and professional having minimum 5 years in current business

 Holder of computerized National Identity Card


 Between 25 and 60 years of age

Loan Amount

Minimum Maximum
Purpose Bank Rate
Amount Amount
Bank financing up
Purchase of House/Flat&
Rs. 300.000/- Rs. 7,500,000/- to 70% of
Construction
assessed value
Bank financing up
Home Improvement/
Rs. 300.000/- Rs. 3,000,000/- to 20 % of
Renovation / Addition
assessed value

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Tenure of the loan

Purpose Minimun Maximum


Purchase of House/
3 years 15 years
flat
15 years with maximum 12 months grace
Construction 3 years
period.
Home improvement 3 years 05 years

Mark up rate charged

Most Competitive rate in the market, which will be calculated on daily product basis, linked
with Average six months KIBOR +300 BPS; it will be reviewed every quarter.
(For each year new amortization schedule will be provided to the customer in case of any
change in mark up)

Other charges

Non-refundable fee Rs.450/-


Processing Fee Rs. 2,950/-
Valuation charges, legal charges Stamp duties, levies etc Actual

How will the loan be repaid?

Loan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.

Monthly installment can easily be calculated for e.g. .if, you take a loan for Rs. 1,000,000
for 15 years. Simply multiply the 15-year factor by your amount Rs. 1,000,000 * 0.00985 =
Rs. 9850 will be your monthly installment payable excluding insurance (Life & Property).

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Financing
Pricing Factor
period
3 0.03157
4 0.02465
5 0.02052
6 0.01778
7 0.01584
8 0.01439
9 0.01328
10 0.01240
11 0.01169
12 0.01110
13 0.01061
14 0.01020
15 0.00985

(Insurance premium for the first year will be paid in full up front with down payment and for
subsequent years along with installments.)

Security of the loan

 House/flat purchased
 Plot on which construction is to be carried out
 House on which renovation is to be carried out

Documents are required

 Copy of CNIC
 Two recent photographs
 Last three Salary slips/ salary certificate on company's letter head with joining
date Current designation, length of service, gross salary & certificate from HR
department for perks.(for salaried individuals)

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 Bank statement for last six months for salaried individuals and for the last I
year incase of self-employed businessperson
 Copy of utility bills
 Fee slip of children if applicable
 Income tax return / wealth statement
 Copy of Rent agreement if living in rented house
 Business proof (for a business person)
Agriculture Financing

The bank of Punjab is offering following agriculture schemes

 Kissan Dost Agricultural Scheme


 Kissan Dost Tractor Scheme
 Kissan Dost Mechanization Scheme
 Kissan Dost Farm Transport scheme
 Kissan Dost Eslah-E-Arazi Scheme
 Kissan Dost live stock development Scheme
 Kissan Dost livestock Scheme
 Kissan Dost Commercial Agro Services Scheme
 Kissan Dost Agri Mall Scheme

Basic requirement for all these schemes are same. But there is little bit difference
according to the scheme and amount of the loan. In most of the schemes the requirement
is that the Brower should be resident of cultivated area and own a minimum 5-acre and
maximum 50-acre area. Amount of loan is different for different loans. For all these loan
there must be some security for bank. Mark up rate is different according to scheme.

Corporate Financing

Relationship Managers, at the bank of Punjab are dedicated towards developing


relationships with corporate clients to service their financial needs. Advances department
provide the advance to the reliable corporate client. The corporate finance department of

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bank of Punjab is offering different types of loan facilities, like Demand Finance, Cash
Finance, Running Finance over draft etc.

For corporate financing bank the financing limit for client on the basis of its asset and
bossiness exposure. The Corporate Banking Group manages a high quality asset portfolio
being an active player in many sectors including textile, sugar, leather, pharmaceutical,
fertilizer, petrochemical, power, automotive, oil and gas distribution, marketing and refining
and fast moving consumer goods industries.

In the dynamics environments of business bank provide the short-term and long-term
funding needs in the most efficient manner, drawing from the full range of our resources
and capabilities. To provide finances bank must look at the affectivity and efficiency of the
business. The bank of Punjab is offering the variety of working capital financing facilities.
The bank of Punjab is also providing the structured finance syndicate to its clients.

Trade Services

The foreign exchange department of bank of Punjab is offering the trade service to clients.
The bank of Punjab offers a full range of documentary letter of credit services as well as
discounting and reimbursements to support any or every part of the customer trade
transaction. Experienced personnel use their specialized expertise to innovatively structure
trade transactions and process daily trade transactions, and have end-to-end responsibility
for your letters of credit, reimbursements, negotiation of documents, and inquiries. They
also handle export guarantee transactions and government donor flow intermediation.

The bank of Punjab can provides trade related facilities, for an appropriate period, in line
with working capital cycle of client, to assist client in financing their imports/exports. There
are two types of LC, sight LC and usance LC. In sight LC bank pay the amount when it
receive the Bill Lading from Correspondent bank. In usance LC, there is limit of payment
normally 90 days. For providing these facilities bank have following charges schedule.

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Charge schedule of the bank of Punjab

Sight Bills
a) At Negotiation end: Negotiation commission @ 0.50% - Min Rs.
200/-+ Courier Charges Rs.50/-
I)
b) Collection charges for restricted
L/C (where negotiation is restricted Rs. 250/- (Flat) Per Bill + Courier Charges
to some other Banks and Rs.50/-
presented to us for forwarding).

c) At opening end (at the time of


retirement) Rates of Mark-up
i.) If retired within 3 days from the As per approval of Sanctioning Authority
date of lodgment.
ii.) If retired after 3 days of As per approval of Sanctioning Authority
lodgement.

NOTE:
* No Mark-up will be charged from the date of negotiation till the date of lodgement of
documents received under Inland L/Cs, where the payment as per reimbursement
arrangement is made to the negotiating bank only on receipt of documents.

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2 Usance Bills
1) Negotiating End Negotiating commission Rs.200/-Flat+Courier
charges Rs.50/-
i) Markup on documentary Bills (I) In case of Sight L/Cs Mark-up is to be
Purchased /Negotiated recovered/charged as per approval of
under Inland L/C Sanctioning Authority.
(II) In case of Usance L/Cs Mark-up is to be
recovered/charged
as per approval of Sanctioning Authority.
(III) In case of Usance LCs of our own Bank,
Mark-up is to be recovered/charged as per
approval of Sanctioning Authority

2) Opening End Acceptance Commission @ 0.10% per month


shall be recovered/charged for the usance
a) At the time of Acceptance of Import Bills for the period beyond the date
the Bills. upto which the commission has already been
charged at the time of opening of LC or
thereafter any extension is made in the
validity of the LC.

b) At the time of booking Rs.350/- (Flat).

c)At the time of maturity/due date Rs.350/- (Flat).

At Collection End

Collection Charges Rs.250/- (Flat) per bill + courier charges


3 Rs.50/-
Discrepancy Charges
Rs.500/- (flat)

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These all facilities are provided on the specific limit maintained by the corporate bank. The
bank of Punjab is offering FIM, FATR facilities to its clients.

For foreign trade, The Bank of Punjab has collaboration with following foreign bank for
correspondent.

CORRESPONDENT BANK

Bank Name Address Swift & Telex Currency Account No.


23-25 Mahatama
STANDARD
Ghandi Road, FORT SCBLINBB ACU $ 22205248426
CHARTERED BANK
Mumbai 400 001
Sepehr Tower Somayeh
BANK SADERAT
Ave. P.O. Box 15745- BSIRIRTH 0088-212352 ACU $ 216/1/1/6501
IRAN
631 Tehran, Iran
Banque Nationale du
Canada 600,rue de la
NATIONAL BANK OF BNDCCAMMINT 00210- 097613-228-001-
Gauchetiere Quest CAD
CANADA 525181 01
Montreal H3B 4L3,
Canada
8034 Zurich, P.O.Box
UNITED BANK AG
1176 Feldeggstrasse UNILCHZZ CHF 859.03.01.001
ZURICH
55, Switzerland
Holmens Kanal 2-12,
DANSKE BANK DABADKKK 27000
DK-1092 Copenhagen DKK 3996077691
AKTIESELKAB daba
K, Denmark
Commerz Bank AG,
Frankfurt ZFO BC COBADEFF 0041- 400-8807406-00-
COMMERZ BANK EURO
MITTE 9.6.4 Heidrun 4152530 EUR
Koch-Vollbracht
Filale Frankfurt/M.
NATIONAL BANK OF NBPADEFF 0041-
Frankfurt Branch, EURO 491551
PAKISTAN 414103
Germany
STANDARD 37 Grace Church Street SCBLGB2L 0051-
EURO 01-7087888-96
CHARTERED BANK London EC3V OBX-U.K. 885951
190 Avenue Charles de
UBAFFRPP 0042- 01-092225-001-
U.B.A.F., PARIS gualle 92523 Neuilly EURO
610334 51-0
Cedex france
90, AV. DES Champs-
NATIONAL BANK OF NBPAFRPP 0042- 1210-1227-1-18-
Elysees 75008, Paris, EURO
PAKISTAN 651828 70
France
New York Branch,
P.O.Box 4555/Grand
ABN AMERO BANK ABNAUS33 0023-62734 EURO 005747324350
Central Station, New
York, N.Y 10017 USA
BAYERISCHE HYPO- Am Tucherpark 16, HYVEDEMM EURO 69106935
UND VEREINSBANK 80538 Munich Germany

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The Bank of Punjab 53

AG (HYPO
VEREINSBANK)
UNITED NATIONAL 18 Finsbury Circus NBPAGB2L 0051- 0001-000063-
GBP
BANK London, EC2M 7BJ U.K 884892 001
STANDARD 37 Grace Church Street SCBLGB2L 0051-
GBP 01 7087888 01
CHARTERED BANK London, EC3V OBX U.K 885951
3F, 7-4, 2-Chome, Nishi
NATIONAL BANK OF
Shimbashi, Minato-KU, NBPAJPJT 0072-23830 JPY 21067
PAKISTAN
Tokyo 105, Japan
New York Branch,
P.O.Box 4555/Grand
ABN AMERO BANK ABNAUS33 0023-62734 USD 574073243541
Central Station, New
York, N.Y 10017 USA
HABL, 99 Madison Ave.,
HABIB AMERICAN HANYUS33 0023-
New York, NY. 10016- USD 20729586
BANK 275859
7419 USA
MASHERQ BANK , 255 Fifth Ave. New MSHQUS33 0023-
USD 70120078
PSC York, NY 10016 USA 239881
Banque Nationale du
Canada 600,rue de la
NATIONAL BANK OF BNDCCAMMINT 00210- 097613-240-002-
Gauchetiere Quest USD
CANADA 525181 001-01
Montreal H3B 4L3,
Canada
100 Wall Street, 21st
NATIONAL BANK OF NBPAUS33 0023-
Floor, new York, N.Y. USD 55804561
PAKISTAN 232455
10048 USA
1 Madison Ave., New
STANDARD SCBLUS33 0023- 3582-040168-
York N.Y 10010-3603, USD
CHARTERED BANK 420117 001
U.S.A.
UBAF, 18th Floor Far
U.B.A.F.
East Finance Centre, 16 UBAFHKHX 00802- 60 030000 001
(HONGKONG) USD
Harcourt Road, G.P.O. 75386 03 0/96
LIMITED
Box 9917 Hong Kong
111 Wall Street, 5th
CITIBANK N.A Floor / Zone 9 New CITIUS33 USD 36208954
York, NY 10005
UNITED BANK 30 Wall Street, New
UNILUS33 USD 040-0498-5
LIMITED York, U.S.A.

OBECTIVES OF INTERNSHIP

This internship was the part of my study course, so objective of this internship was to
learn and gain some practical experience. During the MBA program, I studied many
courses about finance, management etc. Here my aim was to see the application of this

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bookish knowledge and its practical implementation. How it is useful in practical life. I
saw the differences in bookish knowledge and its application.

In all jobs related to finance, there is involvement of banks. So my aim was to learn how
banks deal with corporate and general information about rules and regulation of banks.
My second objective of this internship was to learn about general banking, as customer

I tried to get experience, how to work with people of different age, different educational
background, and different interests. How I can be a best team player, how to interact
with officer and deal with subordinates.

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Learning As a Student Intern

Duties

Date Description Supervisor


12 July to Account opening is the entrance to bank. Mr. Amin Dogar
16 July In this department I worked on different
old account and open new account for
individual, proprietor and companies.
18 July to I worked in Consumer finance Mr. Muhammad Afzal
23 July department. In consumer finance major
job was “customer dealing”
25 July to I worked in Clearing department. Here Mr. Amir Butt.
26 July major activities were to receive the
cheques and send these for clearing to
other bank after stamping and keeping in
record.
27 July to 1 I worked in remittance department. Here Mr. Shahid
August we issued, DD, Pay order, TT, MT and
like other responsibilities.
2 August to I worked in cash department. Here I Mr. Raheel
4 August learnt how they calculate profit on
corporate accounts and transfer the
amounts.
5 August to I worked in utility collection. Here I learnt Miss. Aneela
6 August how bank adjust the collection from other
branches with the accounts of PTCL and
WAPDA.
8 August to I worked in foreign exchange department. Manager Foreign
23 August Here I worked in import, Export and exchange.
Foreign currency accounts. In each of
these, I performed different duties.
24 August During this period, I worked in advances Manager advances

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to 5 department.
September

New Knowledge Acquired

As this was my first experience in any bank, so all working of bank was new for me.

About account opening

Account opening is a simple process but it becomes complicated in case of corporate


accounts. For individual or joint account, account opens on following simple requirements.

 Copy of national ID card


 Written evidence of what applicant is doing
 An introducer (a person who already holds account in the bank) for account
opening.

Requirement for company account are as follows

 Written request on the letterhead of company from an authorized person to


open company’s account
 Chief executive, company secretary and director along with common seal
must sign resolution
 Attested CNIC copies of all directors
 Form 29 attested from registrar of joint stock companies
 Memorandum and articles of association.
 Certificate of incorporation
 Certificate of commencement of business only in case of public limited
company

After the completion of these requirements, bank will open the account and sends letter of
thanks to its customer. When account holder comes with letter of thanks bank will issue

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chequebook to account holder. If chequebook is lost the account holder has to give written
application for the stop payment of cheques of that chequebook and fill a form for issuance
of new chequebook.

Remittance

Banks offers different types remittance having different specification. These remittances are
demand draft, for out station payment. Mail transfer is to transfer the amount by mail in any
account of same bank. Telegraphic transfer is same like the MT but here fax machine is
use instead of mail. Pay order is used for intercity payment. This is main difference
between Demand Draft and Pay Order. Call deposit receipt is used in case of tender or
auction.

CLEARING

Clearing is used to pay or receive payments to other banks. There are 2 types of clearing

 Inward clearing
 Outward clearing

Inward clearing
Cheques of our branch that are deposited at other banks are brought to us by NIFT. This is
called inward clearing. In inward clearing we DEBIT a/c of our a/c holder and CREDIT other
branch.

Outward clearing
In outward clearing cheques of other banks are presented in our branch. In it we check
certain factors such as words and figure difference, date of cheque etc.3 stamps are
stamped in these cheques

 Clearing stamp
 Crossing stamp
 Payees a/c credited stamp

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In outward clearing we DEBIT suspense a/c and CREDIT a/c no. of our a/c
holders.

CHEQUE RETURN IN OUTWARD CLEARING


If cheque is returned in outward clearing we make an entry of the returned cheque in the
register and give it back to our customer after having his signatures in the register.

CHEQUE RETURN IN INWARD CLEARING


If the cheque is returned in inward clearing, we fine our a/c holder Rs 100 as a penalty and
also make an entry in the register.

INTER BRANCH CREDIT TRANSACTION (IBC)


IBC advice is made for both inward and outward clearing.

CASH

Cash department perform the responsibilities to deal with cash, transfer amounts from one
account to other accounts and calculate the profit for different types of accounts. When
cheque is presented to bank, officer match the word and figure of cheque. If words and
figure is correct then officer verify the signature and check the date. A cheque can be
converted in to cash within six month. After six month cheque expires. For PLS account
bank calculate the profit on the minimum balance in account from 6th to 29th of the month.
Bank pays this profit after six moth or transfer in account of account holder after six month.
For corporate account profit is calculated on daily basis. Profit is credited after a moth in the
CPA account. Formula used to calculate the profit is

Profit = Capital X days X (%)


365 X 100

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FOREIGN TRADE

Foreign trade is divided in two parts, Import and Export


Imports
For import any product, importer first contact with foreign exporter. There are three
possibilities for trade, one is the advance payment of the imported product, second is
contract between two parties and is the LC, when both parties importer do not rely on
foreign exporter. Advance payment and contact is simple payment through bank, but in LC
bank guarantee about the foreign exporter. To open LC importer request for issuance of LC
on legal required paper with Performa invoice, I forms and insurance of the product.
Importer also gives detail of condition of LC. After this request bank will send LC through
swift. After receiving LC documents, foreign importer ships the product and sends the bill of
lading or AWB to local bank. Bank checks the LC and bill of lading. If there is any
discrepancy, bank takes the acceptance from importer about the discrepancies. To clear
the imported product from port, importer takes the bill of lading from bank after the payment
of LC. If importer cannot pay the amount there is two facilities from bank, FIM and FATR. In
FIM the imported product remain in the custody of bank. Importer has facility to realize the
quantity of product as after payment of that quantity. FATR facility is normally for 120 days.
This facility is for the reliable customers. In this facility customer release the whole
imported product.

Export
Export is just like imports but here we act as exporter bank. In export we perform all that
activity which foreign banks perform in case of import. Exporter provides the documents
like bill of exchange, AWB, certificate of origin, packing list and all other document required
in contract or LC with E form. Bank sends these documents to foreign bank. On receiving
these documents, bank pays the amount according to conditions in LC. Or Contact. In
export bank provides the refinancing and purchasing facility to customers. When customer
has relied on foreign importers then bank take risk and purchase the exports after
shipment. Exporter receives payment from bank, now whole risk of this trade is converted

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to bank. This facility is called negotiation or purchasing. In refinancing bank finance the
local exporter according to prudential regulation of state bank.

Advances

Main working of Advances is department is to provide loan to corporate client. This main
job of this department is to maintain the credit limit of client, offer loan, approve loans and
like other work related to corporate loan. Normally banks offer the loan in form of Demand
finance, cash finance, running finance and other schemes according to customer
requirements. Running finance facility is to meet the day-to-day expenses. In running
finance bank debit the account of corporate client and issue the chequebook. Client can
cash the require amount from this account. Cash finance facility is to meet seasonal
requirement of cash. For example in cotton season, textile related companies require cash
to buy cotton. Bank provide loan and cotton remain in custody of bank, to provide different
loans banks require different securities like Lien, Pledge, Hypothecation and Mortgage.
Lien is marked on liquid assets; mortgage is for the assets like land or building. Pledge is
offered for cash finance or seasonal finance.

Documentation Require
Generally for all types of loans, bank of The Bank of Punjab require following documents.

Document For
 Accepted Facility offer letter “FOL” All facilities
 Letter of arrangement All facilities

 Demand promissory note All facilities


Running finance
 Letter of continuity
All facilities
 Letter of authority
Demand finance
 Letter of installment
All facilities
 Agreement for financing
HYPO
 Letter of hypothecation
Pledge
 Letter of pledge
Where required

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 Memorandum of deposits of title deeds Where required


 Comprehensive insurance policy Where required

 Personal guarantee of the Mortgagor/ Director

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SWOT ANALYSIS

Strengths

I. The Punjab government is supporting to “The Bank of Punjab”. It builds trust of client
on Bank.

II. M/S PACRA has awarded the Bank with the credit rating AA- for Long term and A1+
for Short term, based on its financial results for the year ended as on 31st December
2004

III. The Bank of Punjab has a large network of branches. There are 254 branches all
over the Pakistan

IV. The Bank of Punjab has computerized banking system.

V. The Bank of Punjab provides the online Banking facility to its customer.

VI. To train its employees Bank of Punjab have training center. There are different
training session are held for new and old employees.

VII. Financial position of The Bank of Punjab is growing every year. The Bank of Punjab
has highest earning per share.

Weaknesses

I. The Bank of Punjab has only few branches out of province Punjab. Other banks
have competitive edge.

II. As Bank of Punjab has extensive branches within the Punjab province. It is difficult
to manage large number of branches, further it increase the cost.

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III. The staff members of The Bank of Punjab are not satisfied with the pay scale
increments and promotion criteria as compare to other banks.

IV. The work responsibilities are broken into small parts.

V. The bank is offer regular product line. There is need to enhance the product line.

VI. Turn over rate of employees is increasing, as they are not satisfied with the pay
structure.

Opportunities

I. As economy is growing, there is more investment demand in Pakistan. Banks have


opportunity to enhance their business.

II. Imports and exports of the country are increasing.

III. With the threat of WTO SMEs require more funds to enhance their infrastructure to
improve the quality. Banks are the source of these funding.

IV. The number of salaried persons is increasing with the economy structure of the
country. This creates opportunity in consumer financing.

Threat

I. The Bank of Punjab has major GOVT. deposits. With change of government policies
it may affect the bank

II. Entrance of foreign bank in competition with local bank is great threat for bank of
Punjab

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III. The State Bank of Pakistan often imposes various restrictions on banks. Therefore,
none of banks is independent in policy making and can launch any product without
the permission of the State Bank of Pakistan.

IV. Government legislations about banking sector

V. Political factor more influence on The bank of Punjab

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RECOMMENDATIONS

Last five year performance of The Bank of Punjab shows that the bank of Punjab is
increasing its profitability and its deposits. Being the bank of government, the bank of
Punjab has major government accounts.

 The bank of Punjab should try to maintain the accounts of diversified


companies. This will reduce the risk of government policies
 To manage its all branches the bank of Punjab should establish the intranet
system.
 To attract new customer bank should offer value added services
 The Bank of Punjab should increase the line of product to attract the new
clients.
 Those activities, which a one person can perform, should be integrated to
save time.
 The bank should revise its pay structure and compensation plan according to
the market, in view to decrease the turn over rate

CONCLUSION

The bank of Punjab is the one the best bank in local banking sector. Its growth rate is
highest among all local banks. There are some flaws like the small product range, have
two are three major GOVT accounts and like others. The bank of Punjab has potential to
become top ranking bank in Pakistan banking industry.

My basic purpose of this internship is to learn about the working of bank. During my
internship I got knowledge about general banking, foreign exchange and advances. Staff
member of bank of Punjab are cooperative with me and really help me to achieve my
objective.

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Bibliography

http://www.bop.com.pk

http://www.sbp.org.pk

http://www.business-standard.com

http://www.sheshunoff.com

Staff of the bank of Punjab

Annual report of the Bank of Punjab

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Glossary

Advice A bank's written acknowledgement of a transaction

ATM automated/automatic teller machine

Asset turnover is a ratio focusing on the volume of sales achieved by the


business

Asset portfolio Allocating the funds to different assets classes

AWB Air way bill

Bill of exchange An order written by an exporter instructing an importer, or an


Importer’s agent, to pay a specified amount of money at a
specified time

Bill of lading A document issued to an exporter by a common carrier


transporting merchandise. It serves as a receipt, a contract, and a
document of title.

BPS Basic points (Set by the bank to adjust markup)

Capital Adequacy Capital adequacy means having enough capital funds to protect it
from the risk that customer could lose their deposits as a result of
trading losses, e.g. from bad debt by the bank.

CDR Call deposit receipt

CPA Corporate premium account

Credit rating A measured judgment, or formal opinion, about the likelihood that
Interst payments on particular issue of bonds or other debt security
will be paid full and on time, and that debt principle will be repaid in
full at maturity. Ratings are by specialist agencies. The highest
credit rating for long-term debt is AAA.

Commercial banks An authorized institutions and perform four functions. They accept
deposits, make loans, arrange payment of bills and provide a
number of customer services

Data Check Data check is a document has records of all loan of customer
form all banks

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DD Demand draft

D.P. Note Demand promissory note, a legal document

Dividend Part of a company's profits paid to shareholders

Earning per Share the portion of a company's profit allocated to each outstanding
share of common stock

Equity Total assets minus total liabilities.

FIM Finance against imported merchandise

FATR Finance against trust receipt

Hypothecation

KIBOR Karachi Inter bank offer Rate

LC A bank issued document that guarantees payment for a


pre-specified period and amount

Letter Of authority A written agreement to allow Bank to deposited or withdrawn from


an account

Lien An asset held in exchange for debt financing. In lien normally


there are liquid assets like bonds, shares.

Markup The charge you pay if you borrow money or the income you get if
You invest it.

MT Mail transfer

Mortgage Mortgage is charge on immoveable property to secure the finance

NIFT National Institute of facilitation technology (pvt)

PLS account Profit loss sharing account

Profitability Ratio The ratio used to measure the ability of a company to


generate profits.

Pledge Pledge is the bailment of goods for security. In pledge goods are
in possession of bank.

Sight LC In sight LC payment will be made on receiving the shipment

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documents.

Stock dividend A payment by the corporation in share of stock rather than cash

Syndicate A group of banks acting together temporarily to loan money in a


syndicated credit or to underwrite a new issue of bonds

TT Tele graphic transfer

Usance LC In usance LC payment will be made after 90 or 120 days of


shipment

Working Capital Stock plus debtor minus short-term creditor

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Appendix

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