Beruflich Dokumente
Kultur Dokumente
University of Haripur
(2010-2014)
Internship Report On
THE BANK OF KHYBER
HARIPUR BRANCH
APPROVAL SHEET
It is certified that Mr. Malik Arslan Ali Student of BBA (HRM) has submitted report to department
of Management Sciences, University of Hairpur as required by the university.
Internal Supervisor
___________________________
Tariq Iqbal Khan
(Lecturer)
External Examiner
___________________________
Name: ___________________________
Designation: ______________________
Organization: _____________________
Head of Department
___________________________
Dr. Aurangzeb Khan
ACKNOWLEDGMENT
IF YOU GIVE THANKS, I WILL GIVE YOU MORE.
(AL-QURAN)
Everything is possible with the help of ALLAH and our kind effort. Thanks to
Allah for giving me the strength for the task of writing this internship report.
Apart from this I would like to express my gratitude to Mr. Zeeshan Gul Khan
Credit officer at the Bank of Khyber (BOK) who guided me about the banking
structure and procedure. My special thanks to Mr. Sadaqat operational manager,
for his guidance and co- operation who provided me all the requisite information,
And thanks to Mr. Muhammad Saleh at Staff Administration Department, who
kindly referred me for internship in BOK.
At last but not the least, my high gratitude is to my supervisor, Mr. Tariq
Iqbal Khan because it was her supervision and full support and encouragement of
my parents and friends that I got successful in the completion of this report.
EXECUTIVE SUMMARY
Banking is one of the most sensitive businesses all over the world. Bank play very
important role in the economy of a country and Pakistan is no exception. Banks are
custodians to the assets of the general masses. The banking sector influences and
facilitates many different but integrated economic activities like resources
mobilization, poverty elimination, production and distribution of public finance. This
report is concerned with the banking functions/operations in the Bank of Khyber. The
internship is to serve the purpose of acquainting with the practice of knowledge of
business administration
The section two is about the evolution and growth of BOK, the core objectives
and establishment of the Bank of Khyber. This chapter also discusses organizational hierarchy
of the Bank of Khyber. Various departments and their operations are also discussed in this
section. Section four includes some recommendations for the problems observed during
internship period. Existence of effective internal control, technological improvements, better
career planning for employees, training sessions, advance ways of marketing the products and
bringing new ideas for the attracting the customers are some of the recommendations discussed
in this section.
ii
Table of Contents
Chapter 1
1.1Objective ....................................................................................................... 1
1.2Purpose of study..1
1.3Scope of Work.2
1.4Research methodology2
1.4.1Secondary Data Source.2
1.4.2Primary Data Sources:..2
1.5Overview of the Organization..3
1.5.1Brief Histore.3
1.6Vision ............................................................................................................ 3
1.7Mission Statement3
1.8Nature of Organization3
1.9Main Offices4
1.10Products ....................................................................................................... 4
1.10.1Current Deposit Account (Rupees)4
1.10.2Saving deposit account (rupees).4
1.10.3Types of saving deposit accounts..4
1.10.4Term deposit account (rupees)4
1.10.5Khyber monthly scheme (KMS).5
1.10.6Security deposit receipts (SDRS)..5
1.10.7ATM services...5
iii
1.10.8Western Union. .5
1.10.9Express money and Malik Exchange6
1.11Competitors ................................................................................................. 6
CHAPTER 2
3.3.1Accounts Department..16
3.3.2Cash Department.17
3.4Remittances Department17
3.4.1Types of Remittances.18
3.5Credit Department.18
3.5.1Facilities Provided by Credit Department.19
3.5.2Letter of credit (LC)20
3.5.3Letter of Guarantee (L/G)20
3.5.4Head office..21
3.6IT Department23
3.7Task which I perform During My Internship23
3.7.1Account-opening23
3.7.2Current Accouning.24
3.7.3Profit& Loss Saving Account24
3.7.4Basic Requirements for Account Opening ..........................................24
3.7.5Cheque book issuance24
3.7.6Credit Department..25
3.7.7Clearing..25
Chapter 4
4.1Critical Analysis.26
4.2PESTEL Analysis..26
4.2.1Political Analysis26
4.2.2Economic Analysis. 26
4.2.3Social Analysis 27
v
4.2.4Technological Analysis.. 27
4.2.5Environment Analysis 27
4.2.6Legal Analysis. 27
4.3Future Prospects of the Organization27
Chapter 5
vii
CHAPTER 1
INTRODUCTION OF THE REPORT
The study is focused on the Bank of Khyber (BOK) Haripur
branch Khyber Pakhtunkhwa and is based on theoretical and practical
learning of the internee. Selection of the organization depends upon the
convenience and interest of the student as well as the field of
specialization.
1.1
Objective
1.2
Purpose of study
1.3
Scope of Work
Main emphasis of this study is on the working operations of
1.4
Research methodology
1.4.1
Personal observation.
1.5
1.5.1
Brief History
1.6
Vision
1.7
Mission Statement
1.8
Nature of Organization
1.9
Main Offices
Islamabad
Karachi
Peshawar
Lahore
Quetta
1.10 Products
1.10.1 Current Deposit Account (Rupees)
The BOK current deposit account allows the facility of unlimited
withdrawals up to the extent of the Balance in account. There will be no
tax deducted on the funds that someone chooses to keep in these
accounts.
1.10.2 Saving deposit account (rupees)
The BOK saving deposit account allows the facility of multiple
withdrawals up to the credit Balance, while accruing profit on deposits.
1.10.3 Types of saving deposit accounts:
1.
2.
3.
4.
1.11 Competitors
Bank Al Falah
Askari Bank
Faisal Bank
CHAPTER 2
Literature Review
Chart 2-1
Organization
Board of Directors
Managing Director
Long term Projects
Managing Committee
Resident Directors AUDIT
Investment
Computers
Foreign
Branches
Exchange
29 dept.
P & E dept.
Credits dept.
M.B.D
8
Branches 100
2.4
Departments Name
Marketing Department
Finance Department
Accounts Department
Islamic Treasury
ATM Department
Inspection Department
Shares Department
Training Department
Stationary Unit
Law Department
Staff Administration
Complaints Cell
MIS CAD
Personnel Department
10
2.5
Chart 2-2
2.6
There are 10 employees in the HRD and they directly under the
CEO.
11
2.7
Recruitment
Employee Development
Performance Management
Promotion
Transfer
2.7.1
12
2.7.2
The job market has become increasingly competitive over the last
decade. An agencys human resources are what provide a
competitive advantage to the organization. This fact cannot be over
emphasized as public safety agencies (PSAs) address their
recruitment and selection challenges. The dynamics of the working
world have changed dramatically: Baby Boomers are retiring,
Generation X is moving into positions of leadership, and the Y
Generation is entering the workforce. The days of finding a single
employer and retiring from it are a thing of the past. As the
workforce changes, agencies must find a way to appeal to and
regain the trust of employees or risk losing potentially dynamic
employees. An additional consideration to generational changes
when addressing recruitment and selection strategies is the ethnic
stratification found in an agencys local labor market. The local
labor market may actually have a significant demographic shift
towards a younger population from diverse cultures.
2.8
Recruitment
13
Employee Development
BOK has an ACR system in the past which was neither transparent nor
objective based and furthermore the employees were subject to the
supervisors confidential report. To mitigate the negativity of these
practices the management by objective (MBO) system was introduce as
part of Pay for Performance practice. Through this employee
performance was categorized into four parts-6%, 8% and 10% 12% to
form a bell curve. Rates and rewards were also revised ranging from 0%
to 12% which is significant increase as compare to past percentages. All
thisLeading to the strengthening of the pay for performance culture.
14
2.12
Performance Management
Promotion
Transfer
15
CHAPTER 3
BANK OF KHYBER (HARIPUR BRANCH)
3.1
3.2
1. Accounts Department
2. Cash Department
3. Credit Department
4. IT Department
5. Clearing Department
6. Remittances
Accounts Department
This department coordinates all the banking activities there by keeping
track of each activity in a sequential manner and provides up-to-date
data. The accounts department is also responsible for proper accounting
of assets and liabilities of the branch. This department is the backbone of
16
the entire banking system. All the banking activities are placed through
this channel. The main functions of this department are:
Reports.
3.3.2
Cash Department:
Cash department owes its importance to the fact that it is a major point
of contract between the bank and the customer, the banks most valued
relationships. This department is the showcase of the bank and conveys
the first impressions about the banks commitment to professionalism in
its system and procedures and to courteous and efficient customer
service. This department performs the function of receipts and payments.
Efficient cash management is needed to execute payments, collect
receivables and maintain liquidity.
All the activities of the cash department are divided into two i.e.
Cash Collection and Cash Payment.
Supervisors name: Mukthar Shah
Job title: CTIncharge
3.4
Remittances Department
17
Types of Remittances
Remittances can broadly be classified as outward and inward
remittances.
Outward Remittance
When a bank / branch instruct another bank/branch to affect a
remittance or payment, it is said to be affecting an outward remittance.
1. Inward Remittance
When a bank/branch is itself affecting a payment/ disbursement at
the instructions of another bank/branch, it is said to be handling an
inward remittance.
3.2.4.2 Modes of Remittances
Different modes and means of remittance are discussed below.
BOK transfers money in the following ways:
1.
2.
3.
4.
3.5
Credit Department
18
Running finance
Demand finance
The non-fund based facilities are those in which the bank does not
invest its own funds rather its commitment is involved against which the
bank charges a certain amount in shape of commission. These facilities
19
sometime local transaction are also done through the letter of credit
which are termed as inland L/Cs. Usually there are four parties involved
in L/Cs:
Importer
Exporter
Importers bank
Exporters bank
L/Cs may be on sight or issuance basis. In sight based L/Cs, the
importer has to pay the amount upon payment of the value. In case of
issuance L/Cs, the exporter extends credit to importer. The documents are
handed over to the importer against his acceptance of the bill and
assurance of payment of the maturity date of acceptance.
3.5.3
20
Head office
Concerned branch
Following things should be undertaken while preparing a credit
proposal:
1.
3.
Preliminary approval
Stock report
Visit report
21
Manager certification
CIB checking
proposal. When the regular facility is granted for whatever period, the
CAD will prepare and send the original sanction advice to the concerned
branch, which upon receipt should file the original advice in the
respective customer credit file and photocopy field in master file in head
office. These documents are then sent back to concerned branch about the
approval or rejection of the requested loan and if accepted, loan is
granted to the customer after taking security. The sanction advice sent to
the branch consists of clauses regarding the loan. The credit department
keeps relation with the customer and in case of default this department
takes step to recover it.
After the approval of the loan the credit officer must obtain the
following documents:
22
Charge documents
Agreement of finance
Letter of hypothecation
Undertaking
Personal guarantees
Promissory note
3.6
IT Department
The BOK has appointed some qualified software and hardware engineers
in IT department. The senior most is deputed as In-charge of the IT
department. Software engineers/programmers are not only responsible for
application development in BOK and to fulfill requirements of the bank,
but also act like trouble shooters, whereas, installation of the hardware in
the branch set up is the responsibility of hardware engineers. In each
branch, they have assigned a systems administrator to look after jobs
related to the computing system.
Supervisors name: Sadaqat Ali
Job Title: Manager Operation
3.7
Account-opening
23
3.7.2
Current Account
24
3.7.6
Credit Department
2.
3.
Interest rate
4.
5.
6.
3.7.7
Clearing
Date of the cheque mean post/ out dated cheque must not be
received.
2.
3.
4.
necessary.
25
CHAPTER 4
Analysis
4.1
Critical Analysis
During my short stay at the BOK Haripur Branch. I spent around one
week in each department of the bank and this short span of time is not
sufficient for getting all the information about the organization. During
this short period of time, I personally observed and experienced few
problems along with those narrated by concerned personnel of the
branch. I do admit that these problems may or may not be present in
other branches of the bank
1.
2.
3.
4.
Manual System
4.2
PESTEL Analysis
4.2.1
Political Analysis
Economic Analysis
As far as the economic conditions goes than we all know that the
economic conditions look like that they are getting favorable in Pakistan.
Pakistan is the country that is benefiting best from the Afghanistan
Crisis, as it is having Aids that is favorable for the economic conditions
as well as the industries. As far as the rate of profit is concerned it is
26
declining than it was in the past so people are reluctant to deposit their
money in banks.
4.2.3
Social Analysis
Technological Analysis
Environment Analysis
It has the so deep effect on the environment and the economy of the
country Because of its largest branches in the country and their finance
system it has very good effect on the environment.
4.2.6
Legal Analysis
They provide the legal protection to their customer because they fallow
the legal rules and regulation. And there are so few chances of any
mishaps. People feel secure to have account with them.
4.3
The further prospects for the organization is that they have to increase
their branches all over the country and have to adopt the new technology
so that they can provide the more facility to their customers and so that
the number of customers can be increase and on the other hand they have
to start more loan and provides them on time.
27
CHAPTER 5
SWOT Analysis
5.1
5.2
STRENGTHS
28
5.2.2
Member of SWIFT
The BOK also obtained membership of SWIFT (Society for World Wide
Inter-Bank
Financial
Telecommunication),
which
facilitates
the
BOK has best optional policies and attractive compensation packages for
employees.
5.2.3.1 Compliance with Shariah
BOK deals both in Islamic and Conventional banking, and major
decisions are made in the light of Shariah Supervisory Committee (SSC),
i.e. they review each decision in compliance with Shariah.
5.3
WEAKNESSES
Over-Loaded Staff
The banks staff is over worked and over loaded with responsibilities.
The bank needs more staff as the existing staff is trying it hard to cope
with the responsibilities and customer handling at the same time. Though
the working hours of the bank are 9am to 5pm but they have so much
work that they have to work overtime till late and that reduces their
efficiency as well as motivation level.
29
5.3.2
De-motivated Employees
Space Shortage
The space of BOK head office is very limited so the bank has shifted
some of their departments to the State Life Building but still the
departments are overcrowded which affects the employees performance
at the head office.
5.3.4
BOK has no foreign branch which creates problems for importers and
exporters.
5.3.7
5.4
OPPORTUNITIES:
Organizational opportunity is defined as an area in the
30
5.4.1
Strong promotional strategies can attract huge deposits for the bank.
5.4.3
They have the opportunity to open new branches in the country as well as
in foreign countries. They should open new branches at least at the
district level.
5.4.4
5.5
THREATS:
Organizational threat is an area in the environment that increases
31
5.5.1
Major Banks have started their Islamic banking system which is also a
major threat for BOK.
5.6
RECOMMENDATIONS
On the basis of SWOT analysis and personal observation, the
Training Academy
32
Promotional Activities
BOK relies heavily on personal banking; therefore, it does not give due
and proper attention to the more sophisticated methods of promotion. The
bank should adopt strong strategies for promotion and publicity of the
services they offer.
5.6.4
Network Expansion
33
http://www.bok.com.pk/
http://notes-university.blogspot.com/
http://www.scribd.com/
sector, Karachi.
http://www.bok.com.pk
APENDICES
BOK
Bank of Khyber
BCC
LC
Letter Of Credit
34
LG
Letter of guarantee
CAD
NTN
CIB
LBC
OBC
PLS
HO
Head office
DD
Demand Draft
EPB
FDD
NBP
PBT
SBP
TT
P/O
Pay order
IT
Information technology
SS
Specimen signature
AOF
NIC
MTCN
SDR
KMS
SSC
35
36
37