Internship Report On Prime Commercial Bank Limited

Presented To: Madam Naila Hafeez Presented By: Nouman Saleem (011114)

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ACKNOWLEDGEMENT

All praises for Almighty Allah who is THE CREATOR of whole of the universe and admires to our Holy Prophet Muhammad (Peace be Upon Him) who taught us every thing of this life and the life thereafter. Now it is our responsibility to convey the WORDING OF SUCCESS to whole of the Ummah. As it was indicated in the last Address of our Holy Prophet (Peace be Upon Him). And the graves of FELLOW BEINGS are the proof of the completion of this responsibility. I am thankful to my respected internship coordinator Madam Naila Hafeez who gave me an opportunity to do my internship at Prime Commercial Bank Limited. I am thankful to MR.Anjum Saeed (Branch Manager), who allowed me to do internship in New Garden Town Branch. I am thankful to Mr.Abdi, Mr.Naveed, Mr.Akbar, Mr.Kamran, Mr.Waqar, Miss Qurrat and Miss Shazia, who helped me during my internship.

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Executive Summary This Report on Prime Commercial Bank (PCBL) is based on observation and information gathered during six-week internship at its New Garden Town Branch Lahore. I did my internship from 1st October 2002 to 11th November 2002. This report contains various important aspects of internship learning. It contains the history of bank & history of New Garden Town Branch, various depts. industry analysis & internship assignment details. The history of bank includes its start, vision, mission, philosophy, branches, ethics, technology etc. Then the details of various depts. are given. These are Accounts Dept, Account Opening, Credit, Financial Services Dept etc. The industry Analysis includes SWOT Analysis, PEST Analysis, Life Cycle, Benchmark etc. Then next part of the report is about internship assignment that covers the description of the assignment and duties performed by me during my internship in different departments of the Bank i.e. Accounts Opening, Clearing, Accounts, Cash, etc. In finding and analysis section I discussed the things that I observed during my internship. In the end, recommendations and conclusion is given and copy of Internship Certificate is also attached.

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Table of Contents

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INTRODUCTION OF BANKS Banks are the financial institutions. Some authors say that the word bank is derived from the words BancusorBanque which means a bench. The explanation on of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on the benches in the market place and when the business failed the banco was destroyed by the people. Incidentally the word Bankrupt is said to have been evolved from this practice. STATE BANK OF PAKISTAN It is the central bank of the country and was established on July 1, 1948. The state bank provides the policy guidelines and ensures that the money market operates on sound professional basis. Banks in Pakistan Major banks in Pakistan are as follows BANKS in PAKISTAN 1. Muslim Commercial Bank Limited http://www.mcb.com.pk 2. National Bank of Pakistan 3. United Bank Limited 4. Askari Commercial Bank Ltd. http://www.nbp.com.pk http://www.ubl.com.pk http://www.askaribank.com.pk

5. Prime Commercial Bank Ltd. http://www.primebankpk.com 6. Bank of Punjab http://www.punjabbank.com

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7. ABN AMRO Pakistan 8. Allied Bank of Pakistan 9 Habib Bank Limited 10. Bank Alfalah 11. Union Bank Limited

http://www.abnamro.com.pk http://www.abl.com.pk http://www.habibbankltd.com http://www.bankalfalah.com http://www.unionbankpk.com http://www.picic.com/ Web site NA http://metrobank.com.pk/

12. PICIC Commercial Bank Limited 13. Platinum Commercial Bank Limited 14. Metropolitan Commercial Bank Ltd. 15. Soneri Bank Limited

http://www.soneri.com

16. Institute of Bankers Pakistan http://www.ibp.org.pk 17. Citi Bank Pakistan 18. Habib Bank AG Zurich 19. Emirates Bank PK 20. Bank Al Habib 21. Faysal Bank Ltd. http://www.citibank.com.pk http://www.habibbank.com http://www.emiratesbank.com.pk http://www.bankalhabib.com http://www.faysalbank.com.pk/ http://www.fwbl.com.pk http://www.bolanbank.com http://www.bankalfalah.com
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22. First Women Bank Limited. 23. Bolan Bank Limited 24. Bank Al-Falah
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25.StandardChartered

http://www.standardchartered.com/pk/index.html

Prime Commercial Bank Limited History Prime Bank is the vision of a group of Pakistani professionals with extensive domestic and international banking and finance experience. They teamed up in 1992 with a select group of successful and like-minded business houses in Pakistan and overseas. Some of the foreign investors belong to a highly regarded, very sizeable and well-diversified business group of Saudi Arabia. During the initial years, Prime Banks strategy was focused on continuing improvement of internal procedures and operating structures, to ensure a greater control over the quality of its operations. Commercial Banking activities were initiated at the time of inception in 1992. During 1993, two more business divisions i.e. Corporate Banking and Financial Services were added. By 1996, Prime Banks countrywide network of seventeen Branches was in place and Consumer Banking activities were accordingly launched. Under the Banks on going branch expansion program fifteen new branches have been added during the years 2001 and 2002 while one more branch will open in December 2002. This would raise the total number of branches to thirty three focusing primarily on the middle market commercial banking segment while blending in the fast growing consumer banking market. Total Assets of Prime Bank during the period from June 1992 to September 2002 grew at an annual compound rate of about 36 percent to Rs.19.5 billion. Within this period, Shareholders Equity grew from Rs.300 million to Rs.1.5 billion, Deposits to Rs.13 billion and Advances (net) to Rs. 8.1 billion. Profit before tax

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grew from Rs. 1 million for the half year to June 1992 to Rs.235 million for the nine months ended 30th September 2002. After ten years of well controlled, yet sure and successful operations, the Bank is now poised to move forward rapidly to be at the cutting edge of financial services combining highly efficient delivery systems with continuous product innovation. Therefore, development of superior Human Skills and the latest Information Technology platform are the cornerstones of Prime Banks overall strategy to be in the exclusive club of winning banks of the future.

Vision Prime Bank is a prominent Pakistani Bank, providing exceptional value to its customers, shareholders and employees. Prime Bank competes in selected market niches on the basis of superior service, innovation, specialized products and professionalism.

Business Philosophy The Bank is committed to be a sophisticated, prominent and professional institution, providing one window service to its customers. The Bank visualizes itself as a full service institution catering to the specialized needs of its niche markets. Prime Bank's activities primarily cover the provision of dedicated banking services to the commercial middle market segments of the economy, however, selective focus is also given to the corporate finance sector. Prime Bank's operating strategy is focused on continuous improvement of internal procedures and operating systems to ensure a better control on the quality of its business and operations.

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Mission Statement Stronger banking relationships, increasing customer confidence.

This bird shows the tendency of Prime bank to try to fly above the sky and provide the best possible banking facilities to the customers. ETHICAL VALUES Every action of Prime Bank is taken by a set of well-defined values, governing our decisions. Bank commitment is to satisfy customers needs must be fulfilled within a professional and ethical framework. Prime Bank subscribes to a culture of high ethical standards, based upon development of right attitudes. Growth In this rapidly changing environment where customer needs are changing and their expectations are growing, technology is fast proliferating the distribution channels and now banking services can be accessed from multiple contact points. Prime bank believes that balanced growth is the key to survival in today's global banking environment. From a humble beginning with just a few branches in 1992, today Prime Bank has a network of 33 outlets, spread across the country.

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The profits of the bank are ever increasing. Back in 1992,the deposits were 1.2 rs in billions, but in 2001,they were recorded at 10.4 rs in billions. Assets were only 2.1 rs in billions in 1992,but they were 14.5 rs in billions in 2001.Similarly there was increase in the advances given by the bank. So the bank is on the road of rapid growth. Technology at Prime Bank Technology is rapidly changing the way act and does business. It has played a key role in enhancing customer expectations, particularly with respect to speed and quality of service. Latest technology is available in the various branches of Prime Bank. The following technologies are available.

Telephones are provided to all employees Personal computer is provided to all employees Internet facility is provided to all employees Latest printers are provided to all employees

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Branches of Prime Bank It has 33 branches in Pakistan. Lahore=9 branches Head Office 77 - Y, Phase III, Commercial Area, D.H.A. Egerton Road Gulberg D.H.A.

New Garden Town Allama Iqbal Town Circular Road Township Badami Bagh Ferozepur road Sialkot =1 branch Faisalabad=1 branch Multan=1 branch Gujranwala=1 branch Karachi=10 branches Turbat=1 branch Quetta=1 branch Hyderabad=1 branch Sukhur=1 branch Islamabad=2 branches
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Mirpur (A.K.)=1 branch Peshawar=1 branch Rawalpindi=1 branch Gujrat=1 branch

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Organizational Structure Board of Directors

President & CEO

Vice President

Executive Vice President

Senior Vice President

Group Vice President

Branch Managers

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Names of Board of Directors

Mr. Sami Mubarak Baarma Mr. Saeed I. Chaudhry Mr. Saleh Hassan Ali Hussain Mr. Bilal Hakim Mr. Abdul Elah A. Mukred Mr. Tariq S. Asghar Mr. Tariq Iqbal Khan Ms. Shaheen Ali

Chairman President & Chief Executive Officer Director & Chairman of Audit Committee Director & Chairman of Executive Committee Director & Member Audit & Executive Committees Director Director Secretary to the Board

Financial Analysis PRIME COMMERCIAL BANK LIMITED BALANCE SHEET AS AT DECEMBER 31, 2001 2001 2000 Rupees in '000'
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ASSETS Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Provision against non-performing advances Others assets Operating fixed assets Deferred tax assets 1,344,600 766,587 790,000 4,138,400 6,853,020 (613,872) 772,802 211,520 262,618 14,525,675 679,196 674,662 397,372 1,983,892 6,794,059 (536,234) 561,040 148,859 205,400 10,908,246

LIABILITIES Bills Payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Other Liabilities Deferred tax liabilities NET ASSETS REPRESENTED BY: Share Capital Reserves Unappropriated Profit Surplus on revaluation on securities

402,051 2,231,892 10,366,688 97,466 13,098,097 1,427,578

284,617 1,163,117 8,264,168 3,473 64,943 9,780,318 1,127,928

876,818 409,931 93 1,286,842 140,736 1,427,578

674,475 453,434 19 1,127,928 1,127,928

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PRIME COMMERCIAL BANK LIMITED PROFIT AND LOSS ACCOUNT AS AT DECEMBER 31, 2001 2001 2000 Rupees in '000' Mark-up/return/interest earned Mark-up/return/interest expensed 1,155,664 (697,260) 458,404 (89,281) 600 (88,681) 369,723 151,184 327 78,158 3,736 233,405 603,128 (361,271) (760) (362,031) (362,031 241,097 1,060,942 (683,258) 377,684 (64,060) (1,579) (65,639) 312,045 130,593 1,107 55,223 5,513 192,436 504,481 (326,161) (13,700) (6,008) (345,869 (345,869) 158,612

Provision for non-performing loans and advances Provision for diminution in value of invest. written back Bad debts written off directly

Non mark-up/interest income Fees, commission and brokerage income Dividend income Income from dealing in foreign currencies Other income Total non mark-up/interest income Non mark-up/interest expense Administrative expenses Other provision/write-offs Other charges Total non mark-up/interest expense Extraordinary/unusual items Profit/(loss) before taxation Taxation - Current - Prior years' - Deferred

(133,000) (12,337) 56,837 (88,500)

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(165,000) 80,633 21,863 (62,504)

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Profit after taxation Unappropriate profit brought forward Profit available for appropriations

152,597 19 152,616

96,108 411 96,519

Credit Ratings It has a crediting rating of AA1.Which means that PCBL is considered to be good by PACRA. New Garden Town Branch I did my internship at the NGT Branch. it was founded back in 1997.it has all the latest technologies and its performance has been very good. Its location is very good.it is situated near KFC .So its location is very ideal. Its address is GROUND FLOOR, BLOCK #2,AWAMI COMPLEX, USMAN BLOCK, NEW GARDEN TOWN, LAHORE. The hierarchy in that branch is as follows Assistant officer Deputy officer Officer Assistant manager

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 Manager Branch manager

Various depts. at Prime Bank The following are the main depts. at PCBL Accounts Account opening Credit Financial services Audit Clearing Cash Foreign trade Details Account opening The opening of an account is the establishment of banker-customer relationship. By opening an account at a bank a person becomes a customer of the bank. Types of customers

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1) Individuals account: Individuals account is operated by a single person. 2) Sole proprietorship: In sole proprietorship there is only one account owner of the company, the owner operates the account. 3) Partnership Firms account: Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any of them acting for all. There a partnership can be created by a written agreement. This agreement between partners is called partnership deed. This partnership deed is a best document for opening partnership/firms account.

4) Companies: Company is an association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capita being commonly divided into the shares, of which each posses one and more and which are transferable by the owner.

Process of Account Opening When a customer comes to open his account in the bank, he shows his NIC to the concerned person. He has to provide the reference of any employee of PCBL.Otherwise he cant open his account in the bank. Then he fills the account opening form. He can open his account in currencies like PKR, US $, GBP, DM etc.the form has a signature card, requisition slip and a paper of terms and

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conditions in it. He has to choose whether to fill the Affidavit or not. It means that the customer wants to give ZAKAT on his own will.min. amount for the current account is Rs.1000 and for the saving account is Rs.5000.then stamping is done on the form and account is opened. Operation of Account When the accountholder comes to bank, he gives the requisition slip to the concerned person. Then sign verification is done. He can get the cash or can ask for a new chequebook. He can get the statement of his account as well.

Types of Deposits Primax Classic

Profit is paid Monthly on Daily Product Basis Profit is paid Monthly on Minimum Balance

Primax Anchor

Tiers
Rs.10,000,000 and above Rs. 1,000,000 to Rs.9,999,999 Rs. Rs. 100,000 to Rs. 999,999 1 to Rs. 99,999

Provisional Rates 7.00% 6.75% 6.50% 1.00%

Tiers
Rs.50,000,000 and above Rs.25,000,000 to Rs.49,999,999 Rs. 5,000,000 to Rs.24,999,999 Rs. Rs. 500,000 to Rs. 4,999,999 1 to Rs. 499,999

Provisio Rates 7.75%

7.50%

7.25%

7.00%

1.00%

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Primax Exclusive

is a specialized Term Deposit Scheme (Profit is paid on maturity)

Tiers
Rs. 5,000,000 and above Rs. 1,000,000 to Rs. 4,999,999 Rs. Rs. 100,000 to Rs. 25,000 to Rs. 999,999 99,999

3 Months 8.50% 8.00% 7.75% 7.25%

6 Mont 8.75%

8.50%

8.00%

7.50%

SPECIAL NOTICE DEPOSITS OTHER TERM DEPOSITS

Minimum Balance Rs.5,000.00 (Profit is paid on maturity)

Minimum Balance Rs.5,000.00 (Profit is paid on matu

7 to 29 Days Notice 30 Days Notice

5.50% 6.50%

1 Month 1 Year 5 Years

7.75%

9.00%

10.00%

SAVING ACCOUNTS
Profit paid six monthly on minimum balance of the month

Rs.5,000 and above Rs. 1 to Rs.4,999

8.00% 1.00%

Profit rates quoted above are provisional per annum with effect from November 01,

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Closing of Account: Whenever an account is closed, a request form is taken from account holder. His outstanding balance is checked, SS card is taken from the cash counter and then account-closing checklist is attached with the account opening form. All these documents are stamped as closed account and then put into the file of closed accounts. The chequebook and ATM card are being destroyed. The account closing condition is also entered into the computer system. Accounts dept.

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It is considered to be the most important dept of the bank because all the daily transactions are checked and scrutinized in this dept.the accounts dept of PCBL does the following duties. Day end is given to the accounts dept from the cash dept daily. All cheaques paid and deposits collected throughout the day are recorded at cash dept and then all the sheets are given to accounts dept for checking and scrutiny. Various batches are made and all the sheets are given to accounts dept for checking and scrutiny. These batches contain the various activities performed during the previous day. Activity sheets are made by cash dept and all the sheets are given to accounts dept for checking and scrutiny. All the income and expense vouchers are made by the accounts dept. The bank receives various cheques in a day and they are sent to the accounts dept for sorting. Various account holders deposit heavy amounts of money in a day and the deposit slips are sent to the accounts dept for sorting. All-important files are kept at the accounts dept. Clearing dept. The clearing dept is very important because it handles the cheques of other banks. for e.g,if a client comes up with a cheque of MCB,then payment is not made to him and he is sent to the clearing dept.of the bank. Clearing dept of PCBL does the following duties. Inward clearing is done and it means the cheques that are send by other banks or other branches to PCBL. Outward clearing is done and it means the cheques that are send by PCBL to others.

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 These are done according to the rules of NIFT. NIFT is the central company of SBP for the clearing purpose. Types of clearing: Outward clearing When the bank receives cheques of other local branches of banks, a cheque deposit slip is filled; the carbon copy is given to the cheque depositor after receiving, original slip is attached with the cheque. The slip is stamped as clearance. Then the summary of total cheques received is made. At the day end the cheques are sorted bank wise and the person who is responsible for clearing takes all the cheques to the State Banks Clearing House. In Clearing House each bank have their accounts. The cheques of the certain bank are handed over to them who credit the account of that bank in the State Bank, which gives them cheques. Bank account is debited and customer account is credited when the cheque is being cleared. Inward Clearing When the bank receives its cheques from other local branches of bank through clearing house, it checks that whether the cheques are in a proper format and properly signed. Then thats banks account in the state bank is credited and that of its own account is debited. Daily Activity Process if a client comes up with a cheque of other banks, he is sent to this dept.then stamping is done on the cheque and slip is given to the client. Then photocopies of all the cheques are done .all transactions are recorded in the Excel and then the daily record sheet is made.

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Cash Dept It is considered to be the most important dept of the bank because all the daily transactions take place here. It is a very sensitive dept and it is run by the most experienced persons. The system of cash dept of PCBL is as follows.

Cash dept of PCBL has 3 counters in most of the branches.ist one is for cheques.the clients give their cheques here and they arte given the token. Then they wait for their turn.

2nd counter is for the receipts of deposits from the clients 3rd one is for making the payments to the clients. It deals in TTs.The telegraphic transfer is a request online by the client to transfer amount from his account to the account of some other client of the bank.

Cash dept of PCBL performs the following activities.

It deals in DDs.Demand draft is a request by the client to transfer amount from his account to the account of some other client in some other city. It deals in pay orders. Its a request by the client to transfer amount from his account to the account of some other client in same city.

OVERDRAFT (OD) is the most common form of bank lending. When a

borrower requires a temporary accommodation, his banker allows withdrawals on his account in excess of the balance, which the borrowing customer has in credit, and an overdraft thus occurs.

It makes various batches, daily activity sheets, settlement advices between clients etc.

Foreign Trade Dept It is considered to be a very important dept of the bank. It deals in the import and export matters of the bank. The most important document in Foreign Trade is Letter of Credit.

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Letter Of credit (LC): LC is an undertaking by the issuing bank in the name of beneficiary (exporter to pay him certain amount subject to fulfillment of terms and conditions laid down in LC. A letter of credit is generally a very safe method of obtaining payment provided the exporter complies with the terms of the credit. While a letter of credit generally favors the exporter, the importer can also protect his own position by stating documentation he requires and by specifying shipping date. Kinds of LC 1) A Revocable Credit: A revocable credit is one, which may be amended or cancelled without the prior notice to the beneficiary. The issuing bank retains the right to revoke such a credit, which may be exercised (1) upon a written request from the applicant for the credit or (2) on its own, because it considers that it would not be possible to obtain reimbursement from its customer. 2) Irrevocable Credit: Irrevocable credit is one, which can be amended, modified or cancelled with the permission of all the parties involved in LC. From the point of view of the seller, an irrevocable letter of credit affords him a greater degree of protection than a revocable letter of credit. 3) Confirmed credit: If the seller wishes to be sure that once he exports the goods he could obtain payment therefore he can insist upon the buyer to have the letter of credit confirmed by a bank in the sellers country. In this situation the issuing bank requests either its own branch in the sellers country to advise the beneficiary
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regarding the establishment of the letter of credit and adds its own confirmation to the letter of credit. 4) Unconfirmed Credit: There is no need of confirmation from confirming bank in unconfirmed credit. 5) Red clause Credit: Red clause LC is mostly used for the import of big plants. A red clause credit enables an importer not only to set forth-documentary terms in a letter of credit covering a shipment but also to provide for the exporter to draw upto a specified percentage of the amount stated in the credit 6) Transferable Credit: In this type of LC the beneficiary can transfer LC to the third party.

PARTIES IN A TRADE DEAL

Seller (Applicant) The banks customer who requests the issue of the letter of credit i.e. the importer. Buyer (Beneficiary) issued i.e. the exporter. LC opening bank The bank that issues the letter of credit at the request of its customer LC advising bank A bank in the beneficiarys country through which the issuing bank communicates the credit to the beneficiary. The person in whose favor the letter of credit is

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EXCHANGE RATES BULLETIN

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DATE :

Saturday23-Nov-02 SPOT RATES QUOTES VALID UPTO USD 3,000/= OR EQV.

SELLING TT & OD 58.6000 92.6056 39.6482 0.476462 15.6250 58.4359

CURRENCY US DOLLAR STERLING SWISS FRANC JAP. YEN SAUDI RIYAL EURO

BUYING BUYING OD TT CLEAN T/CHEQUES 58.4000 92.2895 39.5129 0.474835 15.5717 58.2365 58.3136 92.0317 39.4016 0.473466 15.5327 58.0630

FORWARD BOOKING RATES FOR IMPORTS QUOTES VALID UPTO USD 3,000/= OR EQV. US DOLLAR 1MONTH 2 MONTHS 3 MONTHS 4 MONTHS 5 MONTHS 6 MONTHS 58.7300 58.8300 58.9300 59.0200 59.1200 59.2400 STERLING 93.5375 93.4947 93.4632 93.4151 93.3823 93.3804 JAP . YEN 0.482299 0.483127 0.483954 0.484698 0.485526 0.486516 EURO 59.0622 59.0796 59.1086 59.1274 59.1559 59.2161

FORWARD BOOKING RATES FOR EXPORTS QUOTES VALID FOR MINIMUM AMOUNT OF USD 50,000/= OR EQV. US DOLLAR 1MONTH 58.4500 STERLING 92.1698 JAP.YEN 0.475247 EURO 58.1987

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2 MONTHS 3 MONTHS 4 MONTHS 5 MONTHS

58.5500 58.6400 58.7500 58.8300

92.1284 92.0824 92.0671 92.0042

0.476067 0.476804 0.477704 0.478360

58.2163 58.2354 58.2741 58.2829

EXPORT BILLS BUYING/ F.B.P. NEGIOTIATION RATES (FOR EXPORT BILLS UNDER L/C) 30 DAYS DOLLAR STERLING EURO 58.2124 91.7855 57.9748 60 DAYS 58.0964 91.3274 57.7369 90 DAYS 57.8960 90.8692 57.4990 120 DAYS 57.7660 90.4111 57.2611

150 DAYS 180 DAY 57.5448 89.9529 57.0232 57.3396 89.4947 56.7853

DEPOSIT ENCASHMENT RATES RATES CURRENCY DOLLAR STERLING EURO RATES 58.5221 92.6346 58.6743

CURRENCY NOTES RATES

SELLING C/NOTES 59.7720 94.9207

CURRENCY U.S.DOLLAR STERLING

BUYING C/NOTES 57.8160 90.9052

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Financial Services Dept The financial service dept of PCBL is the one that deals in the shares business & stock exchange. SHARE is a security of a company that is sold to the public for the purpose of collecting money for the organization. They are also given to the employees of the companies. So financial service dept of PCBL is the one that deals in the shares and securities. This dept operates in the following way. Operation This dept operates in the following way. When a new client comes in to do shares business, IST he opens his account. Then he can buy the shares of various companies. The most profitable companies recently are PSO, FFC, PAKTEL etc. after that he can come to this dept or phone the concerned person to buy or sell his shares. a T.V is placed in the dept so that the customers can watch the ever changing mode of the stock exchange. Sale and

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purchase forma are maintained for this purpose. Mostly the KSE is watched because LSE etc are the subsidiaries. The person in this dept is an intermediary party between the broker in stock exchange & the clients. whatever profit is, it is distributed 50% to broker and 50% to the banker. Types of Capital Authorized capital is the one that is given to the registrar for the listing of the company in stock exchange. Issued capital is given to the public in form of the shares and securities.

What is Stock Exchange? Its a market for sale & purchase of the securities. Credit dept It gives loans to others after confirmation of the following. Guarantee of others Past record of the customer Sources of repayment

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Industry analysis
SWOT Analysis Strengths Team Work A big strength of PCBL is the teamwork & commitment of all the employees of the bank. Good Hierarchy A big strength of PCBL is the system of management of the bank. its centralized and its working well. Good Profitability A big strength of PCBL is the ever-increasing profitability of the bank. it shows that the overall performance is improving every year. Qualified Staff
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A big strength of PCBL is its well Qualified Staff. Mostly postgraduates are working in the bank. Good Locations Another strength of PCBL is its locations. Most of the branches are working in major cities and they are situated at the heart of the cities. Incentive System Another strength of PCBL is incentive system. Employees are paid bonuses thrice a year and special bonus is given to the employees who has performed brilliantly or has brought profits for the bank. Good Salaries Another strength of PCBL is the fact that all the employees are paid very well according to their experience & ranks. Good Credit Rating
Another strength of PCBL is Good Credit Rating of the bank. It has a crediting rating

of AA1.Which means that PCBL is considered to be good by PACRA. Employment Security Another strength of PCBL is fact that all employees have good job securities. Most of the employees work for a long period of time when they are selected for job at the bank. Orientation Another strength of PCBL is the fact that orientation is given to all the new employees so that they can get familiarize to the conditions. Market Responsiveness Another strength of PCBL is the fact that bank is Market responsiveness. it changes its operations according to the changing environment. Latest Technology

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Another strength of PCBL is the fact that bank is using most of the latest technologies. Online Transactions Another strength of PCBL is the fact that bank is that a few branches of the bank are online.

Weaknesses No ATM A big weakness of PCBL is the lack of ATM.Most of the banks are giving this facility to the customers. But PCBL has not yet started giving the services of ATM to customers. No Credit Cards A big weakness of PCBL is the fact that it does not provide the credit cards. Most of the banks are giving this facility to the customers. But PCBL has not yet started giving this service. Less promotion A big weakness of PCBL is its less promotion as compared to others. No ads are shown on T.V. Fewer Branches

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A big weakness of PCBL is the fact that it has only 33 branches in Pakistan. Whereas big banks have more than 1000 branches in Pakistan No Evening Banking PCBL is not providing the evening banking services.

Opportunities ATM A big opportunity for PCBL is to provide the ATM services to its customers. That can increase its image. Credit Cards A big opportunity for PCBL is to provide the credit cards to its customers. That can increase its profitability. More Branches A big opportunity for PCBL is to increase the no of branches and promotional efforts. Evening Banking A big opportunity for PCBL is to provide evening banking to clients.
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Threats Exiting Competitors The existing competitors like MCB, ABL, UNION BANK, SC BANK; CITIBANK etc are giving a hard time to the bank. New Competitors New competitors are a continuous threat for the bank.

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Industry Life Cycle

Growth
Stage

Stages In Life Cycle

Banking Industry
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Current Situation The banking industry is on a rise.Profits and branches are increasing.Therefore,we can say that the banking industry in on the growth stage.

Porter Model Rivalry among the existing banks is very high. Banks like ABL, PCBL, UNION BANK, MCB, ACBL, NBP; UBL etc are very close rivals of each others. Threat of new entrants is very high because new banks like soneri bank etc are also opening their branches. Bargaining power of customers is very high.Because the buyers have a lot of choices in banking sector.

Bargaing power of suppliers is low.Because bank has a lot of choices in this regard. Substitutes are available

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Benchmark The benchmark for PBCL is MCB in local banks & Citibank in the foreign banks in Pakistan. Customer Analysis PCBL working in all the provinces. Its working in both urban & rural areas. Its working for all age groups Its working for all genders Its working for all for all types of casts Its working for all income groups PCBL is working for people of all occupations
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 Its working for all social groups as well PEST Analysis Political Analysis Its working under the laws and regulations of the country and it abides by the rules of the Govt. Economic Analysis Its providing jobs to the people and thus improving the economic conditions of the country. Social Analysis Its providing good services to people and serving the people of the country through its operations Technological Analysis Its using the latest technology up to a certain extent

Internship Assignment
Learning is the heart of everything. I am the student of MBA.After 5TH semester; my CGPA was over 2.85.so I was asked to do my internship. It was a great experience. The purpose of internship was to learn how practical work is done in organizations. During MBA, we took lectures, cases, gave away presentations etc.but practical knowledge is very important. Thats why we were asked to do the internship.

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DESCRIPTION OF ASSIGNMENT

I was asked to undergo six-week internship with the Prime Commercial Bank Limited at its New Garden branch Lahore. I worked from 1 st October 2002 to 11th November 2002 in following departments.
Accounts Department Cash Department Clearing Department Account Opening Department Financial Services Dept

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Duties & Responsibilities Accounts Dept My job was to write down the dates and months on the monthly settlement advice books. I checked various batches. I checked the various vouchers. I dealt in cheques. I sorted them, checked dates, stamps and signatures of concerned persons. I dealt in pay orders, DDs and TTs. My task was to make the debit vouchers

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Cash Dept I gave away the tokens to the clients I made various settlement advices. Those included that of payment approved, treasury, online cheques etc I made various debit & credit vouchers. I recorded various daily transactions Financial Services Dept I checked out the share rate and dealt with the clients of bank in that regard. I filled out the sale and purchase order forms. I received phone calls and give the rates of various shares to the clients. I also feeded the activities in the Excel.

Clearing Dept I learnt that, What is clearing The procedure of clearing and posting. What three stamps are required for clearing i.e. stamps (clearing, crossing, endorsement or) Valid Date of Check Stale Check Out of Dated Check Difference between Pay order and DD (Demand Draft) Account Opening Dept
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 I made the account opening forms I received the phone calls of various clients & give them their balances I did the entries in the registers for the issuance of the new chequebooks I also issued the chequebooks I checked various batches

PROBLEMS AND LIMITATIONS Lack of Staff Staff of branch is not sufficient. If someone goes on leave or does not come to work due to some emergency then there is no one to replace him/her. And some other staff member has to look after his work besides his own. This causes delay in completion of work for which not only customer suffer but that staff member has to sit late to complete the work.

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Aptitude Towards Internees The attitude of the most of the senior staff is not cooperative towards the internees. They do not guide the internees. No Separate Room for Prayers There is no separate room for saying of prayers in the bank. It causes a lot of trouble especially for female workers.

FINDINGS AND ANALYSIS Working Environment Working environment of the branch was very good and one really enjoys working under that environment. Working Relationship There was good relationship among the staff. They cooperate and share their knowledge with each other.
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Duty Changes The duties of the staff were changed very frequently. Dependence The work of the most of the staff depends upon other. Most of the staff has not full authority to execute their work and have to wait for completion of work first by another.

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Recommendations Today is the age of latest technology and bank has not yet started the ATM network. So it should be started. There is lack of staff. Especially the person working in the accounts dept is doing the work of 3 persons. So staff should be increased. PCBL should provide the credit cards to its customers. That can increase its profitability. A big opportunity for PCBL is to provide evening banking to clients. The bank should start some more incentive programs to motivate its employees.

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Conclusion In the end, we can say that the future of prime bank is very much bright. They teamed up in 1992 with a select group of successful and like-minded business houses in Pakistan and overseas. Some of the foreign investors belong to a highly regarded, very sizeable and well-diversified business group of Saudi Arabia. After that they expanded the network .Now bank has 33 branches. A lot of new branches will open soon. Profits are on the rise, assests are on the rise, deposits and advances are on the rise. So we can say that the prime bank is going to be one of the top commercial banks of Pakistan after a few years.

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Sources of Information Internet Journals Books Practical internship information Annual report of PCBL

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