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Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan
(ADBP) is the premier financial institution geared towards the development of agriculture
sector through provision of financial services and technical know how. The restructuring of
former ADBP is being carried out with the aim to uplift the agriculture and rural sector by
raising farm productivity, streamlining the institutional credit and increasing income
generating capacity of the farming community. ZTBL was incorporated as a Public Limited
Company on 14th December, 2002 through repeal of ADB Ordinance of 1961.
The report is not an expert view; this is only an internship report of my practical experience in
the Zarai Taraqiati Bank Limited which I have recently completely in the month of July and
August 2009. The report consists of the primary and secondary data which I have collected
during the period of internship at ZTBL head office Islamabad from different sources.
During the internship, I learned some practical aspects of the organization apart from the
theoretical study. The internship report comprises of five chapters. In chapter one I give brief
introduction, purpose, scope of study and methodology used in collecting the data.
In chapter two, discussing an over view of the banking sector of Pakistan, role of ZTBL in
Pakistan, budget review if ZTBL, the hierarchical structure of the organization and the
schemes offered by the bank to its customers.
In chapter three, the overall organization and its prescribed functions which are being
performed by the bank are discussed.
In chapter four, the things related to my field human Resource (HR) are Actual and
prescribed functions of ZTBL, Summary of the Whole Organization, current number
of staff, Training Opportunities to Employees, Workload on Employees, Salary
structure, Promotion criteria, Incentives & motivation, Communication system, Filing
system, Morale of staff, Physical facilities, Performance Management, Procedure of
Performance appraisal, Performance appraisal form and policies department of ZTBL.
In chapter five made the SWOT analysis (strength, weakness, opportunities and
threats), PEST analysis (political, economical social and technological) and findings
and recommendations for the organization are given
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Chapter one:
Introduction
The new corporate structure redefines the bank's status as a public limited company registered
under companies Ordinance'1984 with an independent Board of Directors which aims at
ensuring good governance, autonomy, delivering high quality
ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture financial/non-
financial services to the rural Pakistan, comprising 68 % of the total population. The Bank
through a country-wide network of 341 branches is serving around half a million clients
annually and over one million accumulated account holders with the average loan size of
around Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic and large growers
respectively.
The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as
of 31.12.2005, with a nation-wide working strength comprises 5500 employees. The share of
ZTBL in total national institutional agricultural credit remains around 35%.
ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through
repeal of formal Agricultural Development Bank of Pakistan Ordinance of 1961. Thereby
transforming the bank as a corporate entity to serve as a R. F.I
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1.1 Corporate Vision
“Dedicated to serve the needs of the farming community, by delivering financial products and
technical services on a competitive and sustainable basis, in a convenient, efficient and
professional manner, leading to success of the Bank and the farmers”.
(Mission of ZTBL,
2009)
• Assist rural community, particularly the small farmers, in raising their productivity
and income levels through timely delivery of credit, advisory and ancillary services.
• Establish and provide backward and forward linkages to strengthen agri. value added
commodity chains.
• Engage in public - private and wholesale - retail partnership to deepen outreach and
reduce operating cost.
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• Transformation of ZTBL to R.F.I of the country and road to excellence.
• Healthy and well-functioning rural finance markets are directly related to achieving
the two key national policy objectives of accelerating rural/agriculture growth and
reducing poverty. The realization of these objectives depends on the simultaneity of
developments in rural finance and non-financial markets to foster the creation of
diverse sources of rural finance to build sustainable financial institutions, and
stimulate products and capital flows in the rural sector. For this, rural finance must be
seen as an integral part of equitable development within a framework of macro
economic stability. The ongoing corporatize restructuring lays the basis for
fundamental reforms for rural finance market development.
• The recurring financial drain, pursuing the old rural finance paradigm and the
narrowing fiscal space have also promoted a shift in Governmental strategy that now
seeks viable intermediaries for enhancing outreach.
• For the majority, access to affordable rural financial services is also important to
enable them to compete in the post-World Trade Organization scenario. Inability to
compete because of high financial costs could reduce income of the majority of
farmers and rural clients, particularly the small and subsistence clients. Lack of
access to affordable rural financial services will also prevent the clients from
switching to non-farm activities.
• The ZTBL restructuring plan covering the following; (i) governance: establish an
environment that facilitates good governance and accountability; (ii) systems:
modernize operations through use of technology, networking, and communication
tools; (iii) business processes: streamline products and delivery systems so as to
reduce transaction costs, simplify operations, and increase outreach; (iv) products and
services: introduce products and services that are financially economically viable; (v)
human resource development: improve standards and skills of management and staff
and strengthen training capacity; and (vi) IT: establish new hardware and software
platform to support MIS, accounting system including forensic accounting, and risk
management functions.
• The reforms shall establish ZTBL as a key R.F.I of the country, aiming to outreach
annual rural clientele to 600,000 by the end of year 2008. By expanding its private
sector role, the bank aims to establish network of high tech rural and agri. financial
services through intermediations under public private participation and whole-sale
-retail lending mechanism. Zarai Taraqiati Bank Limited (ZTBL) erstwhile
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Agricultural Development Bank of Pakistan (ADBP) is the premier financial
institution geared towards the development of agriculture sector through provision of
financial services and technical know how. The restructuring of former ADBP is
being carried out with the aim to uplift the agriculture and rural sector by raising farm
productivity, streamlining the institutional credit and increasing income generating
capacity of the farming community. ZTBL was incorporated as a Public Limited
Company on 14th December, 2002 through repeal of ADB Ordinance of 1961. The
new corporate structure redefines the bank's status as a public limited company
registered under companies Ordinance'1984 with an independent Board of Directors
which aims at ensuring good governance, autonomy, delivering high quality.
1.4 Methodology
This data consists of both qualitative and quantitative. The study utilizes primary and
secondary data:
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1.4.1 Primary Data
The first hand data, i.e. the data collected for the first time is called primary data.
Primary data for this report was collected through unstructured interview and
participative and semi-participative observation. The source of Primary data is
personal interviews with the management and the head office personnel’s and my
personal observation in the branch.
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Chapter Two
During the quarter under review, the asset base of the banking system passively grew by 1.6
percent. In the face of increased credit risk and resultant risk aversion on the part of banks as
well as the lack of demand for bank credit from private sector, the asset mix of the banking
system shifted away from loans and advances to risk-free govt. papers and govt. guaranteed
bonds of stock exchange. The loan portfolio (net) declined by 5.6 percent over the quarter
while investments in govt. papers increased by 20 percent. As the banks’ deposits remained
stagnant, banks had to resort to inter bank borrowings for financing the marginal increase in
their asset base.
Besides the decline in loans and advances, the curtailed repayment capacity of the borrower
also resulted in significant increase in NPLs (non performing loans), which registered an
unprecedented over the quarter increase of 21 percent. However, the rate of this increase was
not uniform among all banks, as a couple of banks contributed a substantial share of this
overall increase.
Moreover, this unusually high increase also encompasses the external audit review
adjustments for CY08. e.g. on account of subjective classification of loans rather than just
based on time based criterion. The key asset quality indicators witnessed significant
deterioration – infection ratio deteriorated to 11.5 percent (9.1 percent in Dec-08). Since
major increase in NPLs occurred mainly in Doubtful category, which requires only partial
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provisioning coverage, the NPLs coverage as well as net infection ratios also deteriorated.
Accordingly, the capital impairment ratio i.e. net NPLs to capital, went up to 17.9 percent for
commercial banks, signifying that banks’ inability to recover NPLs and further deterioration
in their credit quality could impinge on solvency. Due to external audit review adjustments
for CY08 that were directly recognized in the un audited quarterly report of conditions for
Mar-09, the retained earnings as well as the equity registered a slight contraction that was,
however, more than covered by surge in revaluation surpluses on account of gains in
revaluation of AFS securities during the quarter. The eligible regulatory capital showed
improvements during the quarter, while shift in asset mix towards govt. papers reduced the
value of the risk-weighted assets. Accordingly, capital adequacy ratio improved to 12.9
percent (12.2 percent in Dec-08).
Since the large share of additional provisioning requirements has been recognized in retained
earnings through audited accounts for CY08, the earnings of the banking system for March-
09 quarter remained largely immune. Banks posted before tax profit of Rs26.2 billion (Rs93.6
for the year 2008 and Rs28 billion for Mar-08). The bottom line registered a more than
proportionate increase as compared with 2008 results, and baseline indicators of profitability
i.e. pre-tax ROA registered a slight improvement to 1.8 percent (1.7 percent for 2008).
Banks’ deposits remained stagnant during the quarter. After facing a significant deposit
withdrawal during Sep-Oct 2008, the banks succeeded in recouping the deposit and posted a
marginal increase by the end of Dec-08. During the quarter under review, banks’ efforts for
deposit mobilization were, however, largely muted by Central Directorate of National Savings
(CDNS) products, which offer higher returns and greater security. Nevertheless, due to
significant decline in loans and advances and increase in govt. papers the liquidity profile of
the banking system further improved during the quarter. The market risk profile of the
banking system also moderated. A strong recovery by the capital market made for a
substantial part of the revaluation losses and enlivened the banks’ interest in equity
investments. Interest rate risk also remained subdued. Interest rates gradually declined during
the quarter, thus appreciating the value of fixed income securities while re-pricing
mismatches remaining within acceptable ranges.
Going forward, the impending economic slowdown and domestic securities issues may
dampen the growth of the banking system in coming quarters. Low demand for banks’
advances and increased risk aversion on the part of banks will further shift asset mix away
from advances to Govt. papers. Banks will have to brace up their efforts for mobilizing the
deposits, which are still showing stagnancy in the latest post quarter statistics. In the third
week of April 2009, SBP cut the policy rate by 100 bps. Contrastingly, the interest rates have
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shown slight inch up in post announcement weeks as the credit demand for commodity
operations picks up. However, this rise also indicates normalization of market conditions and
KIBOR’s tendency to restore its parity with discount rate that was disturbed after last
quarter’s liquidity stress. Nevertheless, in line with SBP monetary policy of gradual easing
out, the interest rates are likely to remain relatively low.
The heightened credit risk will remain a fundamental area of concern for the banking system
in coming quarters. Nevertheless, the system is expected to remain profitable though the
levels as well as the pervasiveness of earnings among different market players will remain
constrained as compared to past years’ results. (Banking sector of Pakistan,
2009)
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90
80
70
50
Zarai Taraqiati bank limited plays a vital role in the agriculture as well as in economic
development of Pakistan. ZTBL is the only bank in the Pakistan which works for the up lift of
agriculture sector of Pakistan because 50% of Pakistan’s economy is based on agriculture
sector. Since40
the very inception the bank’s only purpose and focus is the development in the
agriculture sector of Pakistan.
The bank continued to play a significant role in financing farm investments to modernize
agriculture, 30
increase productivity and raise farm incomes. The bank accorded highest priority
to fulfill the demand of small farmers with land holding under 25 acres. Ztbl alone serves
about half a million farmers annually and has a share of around 30% of the total institutional
agriculture credit.
20
The bank operates through a network of 35 zonal offices and 342branches and a team of 1269
mobile credit officers (MCOs) in the field. Since inception up to 31-12-2007, the bank has
disbursed loan amounting to Rs.481372 million. The bank so far has financed 488,630
10
tractors and 144.013 tube wells besides being major source of financing for farm inputs
including seeds, fertilizers, pesticides and insecticides. Priority was also accorded to the
provision of more credit for livestock, dairy farming. Poultry farming, aqua-culture and
financing of oil0seed crops. The bank continued to channelize flow of credit through several
Mar-08
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Accordingly, during the year 2007, the bank disbursed Rs.44, 327 million (79.3%) in
Punjab, Rs.7, 384 million (13.2%) in Sindh, Rs.3, 802 million (6.8%) in NWFP,
Rs.99 million (0.2%) in Balochistan, Rs.131 million (0.2%) in AJK and Rs.168
million (0.3%) in federally administrated northern areas.
province wise
disbursement of loan
3802 99
0
7484
Punjab
sindh
NWFP
44,327
balochistan
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2.4 HIERARCHY OF THE ZTBL
The designation in the Zarai Taraqiati Bank Limited is a true picture which shows
how the things are working properly. The powers and authority may differ at all levels
of the designations, but all the procedure is updated according to the desired needs of
the time. The bank has a larger burden of work in all the divisions but the proper
arrangements of officers make it possible to handle it at proper time. They all perform
key roles in making policy as well as the decision regarding the progress of bank.
(Vilklanova, P., Bernardin, H.J., Dahmus, S., Sims, R. (p.53), 1993)
Graphic representation of the hierarchy of the basic division of designations of the bank is
given below.
President
Senior Officer.
Officers
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(Organization structure, 2009)
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CHAPTER NO 3
I worked at the ZTBL head office Islamabad and the head office defines the functions
of whole bank all over the country and also monitors and controls the functions. Some
of the departments in which I worked and are as under.
• Credit Division
• Services Division
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• Research & Planning Division
• Recovery Department
Functions
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• Overall responsibility of HR policies formulation, approval and
implementation. Maintain a Human Resource (Policies and Procedures)
Manual in a current state.
• Adopt measures to attract, induct and retain the right talent from the market
into the operations of the Bank.
• Describe job list of all the Divisions, Departments and field offices of the
bank, in consultation with the concerned quarter.
• Manage defense on Bank’s behalf in service matters, recovery and other cases
filed before various courts of law.
• Scrutinize and vet legal documents, agreements, house building & conveyance
advance documents and circular.
• Take timely steps for preferring appeals, review and revision etc. against the
decisions of lower courts.
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• Enlist advocates on panel and as legal advisors and determine their scale of
fee.
Functions
• Ensure that all employee service matters are handled professionally and within
the policy framework.
• Ensure that all relevant employment laws of country are complied with.
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• Ensure that all change management initiatives of the Bank are implemented
down the line.
• Process the cases for grant for permission for further studies and appearance in
examination.
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3.2.1 Employee Service Matters Unit
• Dispose off service matters received from officers and other employee
representative bodies.
• Any other individual service matter case as per policy/ instructions of the
Bank.
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• Issuance of NOC for passports.
• Process the cases for grant for permission for further studies and appearance in
examination.
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• Maintain and monitor yearly manpower budget and organization chart.
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• Review manpower requirements of the bank in the cadre of officer and above,
establish need for additional headcount/manpower and recommend
accordingly. Also ensure that Bank’s human capital is adequately utilized and
adopt measures to regulate HR need with business volume and capacity.
• Prepare internal and external job advertisements and obtain requisite approvals
and coordinate with department/unit concerned to place advertisement.
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3.3 STAFF RELATIONS & WELFARE DEPARTMENT
Functions
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3.4 TRAINING AND DEVELOPMENT DEPARTMENT
Functions
• Ensure that the Bank possess trainers who are adequately trained to design,
deliver and validate training and development programs.
• Ensure that all requisite logistic support is available to the training academies.
• Liaise with all major training agencies, trainers and vendors to the Bank’s
advantage.
• Supervise various units to ensure achieving performance metrics set for the
department.
• Monitor designed performance parameters for the units against the set
performance metrics.
• Ensure that change management initiatives of the Bank are implemented at all
tiers.
• Plan, arrange and conduct induction courses for new inductees, at all levels.
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• Arrange internships for students in Business Administration of recognized
universities, in the Field and at H.O.
• Maintain a central database on training and development (T&D) for each and
every employee of the organization.
• Motivate Bank employees for developing and promoting the culture of team
work to make the Bank vibrant, financially viable and sustainable organization
through workshops and seminars at workplaces.
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3.4.2 Skills Training and Development Unit
• Decide the best suited training solutions to close the competence gap, and
prepare annual T&D plan/ calendar.
• Ensure that employees attend training programs as per approved training and
plan.
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• Help in designing of course syllabi for different courses to be launched at
Staff Colleges.
• Develop a feedback system for evaluating course contents and the trainers,
from the trainees with a view to improve the training programs and
methodology.
• Conduct special courses for the participants of friendly countries as and when
required.
Functions
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• Organize work in various units of the Department to ensure that performance
metrics set for the department are achieved.
• Ensure that all relevant employment laws of Pakistan are complied with.
• Ensure that all change management initiatives of the Bank are implemented
down the line.
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• Prepare and maintain a central database of performance targets/standards of
each & every officer in the Bank.
• Highlight and escalate to the required level anomalies cited in the performance
management for adoption of remedial measures.
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• Highlight and escalate to performance management system unit anomalies
cited in the performance assessments for adoption of remedial measures.
Functions
• Maintenance of employee records and database thus ensuring that accurate and
updated employee records are available for decision making.
• Set performance parameter for the units and consistently monitor performance
of units against the set performance metrics.
• Define financial & administrative powers for all functionaries of the Bank.
• Define job description of all positions in the Bank in consultation with the
concerned Division/Department/Office.
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• Up-dating of HR manual.
• Prepare memo and concept papers for internal and Board approvals.
• Define job description of all positions in the Bank in consultation with the
concerned Division/Department/Office.
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• Formulate and implement HR system (policies) in line with HR strategy.
Maintain Human Resource Policies.
• Prepare all concerned memo and concept papers for internal and Board
approvals.
• Maintain and update record of posting and transfer orders as well as relieving
and joining of all the employees.
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• Prepare all statistics of manpower as per requirement of different
Departments.
• Allocate PP No. to the newly appointed employees of the bank and inform
accordingly the same to Recruitment & Appointment Unit.
Functions
• Provide legal assistance to the Management and the Board in policy making
and operational objectives.
• Manage defense on Bank’s behalf in service matters, recovery and other cases
filed before various courts of law.
• Scrutinize and vet legal documents, agreements, house building & conveyance
advance documents and circular.
• Take timely steps for preferring appeals, review and revision etc. against the
decisions of lower courts.
• Enlist advocates on panel and as legal advisors and determine their scale of
fee.
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• Coordinate with Legal and Litigation Cells in the Field for conduct of
litigation in the courts of respective area.
• Monitor the progress of cases and the performance of the Bank’s Counsel.
• Prepare monthly and quarterly status reports about the cases filed in various
courts.
• Deal with all service matter cases filed before various courts of law.
• Assist and provide legal opinion in service matter cases and vet relevant
documents.
• Assist and provide material for drafting petitions and preparation of defencen
statements to the Bank’s Counsel.
• Take timely steps for preferring appeals, review and revision etc. against
decision of lower courts.
• Coordinate with incharge, to manage service matters cases filed in the courts
of the respective area.
• Feed relevant rulings of the superior courts and changes in service laws to
concerned LLCs & HR Division.
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• Examine legality of Grievance Notices of employees and give timely reply.
• Assess and process enlistment of Panel Advocates, Legal Advisors for the
zonal offices.
• Responding Debit Advices for booking of expenses and law charges to the
respective head of account.
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• Keep liaison with Legal cells in the Field and propose steps for their
efficiency and smooth working.
Functions
• Develop business and product strategies for the Bank, including new product
development for liability and assets products that would entail specific
development of product features, pricing and positioning.
• Analyze particular customer segments and predict market changes that the
Bank can turn into opportunities.
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• Implement policies and directives of BoD, SBP and the GoP on deposit, utility
bills, lockers and other products.
• Identify all operational and transactional risks to develop key risk indicators
for the function.
• Develop and adopt early warning system to proactively mitigate these risks.
• Devise procedures, ways and means to increase resource base of the Bank.
• Develop new products to promote customer loyalty and retention so that Bank
is able to maintain and strengthen the current market-holding/share.
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• Support users in the application of systems, attending to and resolving system
problems in conjunction with system specialists.
• Develop and adopt early warning system to proactively mitigate these risks.
• Enhance and establish a positive corporate image for the Bank through various
marketing mediums including brochures printed material, press, outdoor
advertisement, electronic media and website.
• Conduct needs assessment/ market survey of the target market to gather the
requisite intelligence to design products and services that meet the market
expectations thus improving the market- penetration of the Bank.
• Develop and adopt early warning system to proactively mitigate these risks.
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• Perform any other work/ job assigned by the higher management.
Functions
• Maintenance of fee of SBP license and ensure their availability in branches for
display and record.
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• Support users in the application of systems, attending to and resolving system
problems in conjunction with system specialists. Ensure that procedures,
systems, stationery, documentation etc. related to BOD are in place and in
compliance with internal and external rules/ regulations for all present and
new products and services of the Bank.
• Identify all operational and transactional risks to develop key risk indicators
for the function.
• Determine core and specific job competency for each position of field
operation.
Functions
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• Study and examine proposals on various insurance schemes including crops
and livestock insurance farm machinery, civil work structures and life
insurance of borrowers of the bank.
• Formulate insurance procedures and policies and to monitor and control the
insurance affairs.
• Formulate and review the procedure for booking of tractors and disbursement
of loans thereof.
• Modify procedures based on changing business requirements and technical
capabilities.
• Devise procedures to ensure full compliance to SBP directives/ regulations.
• Approval of insurance policy for the bank from the competent authority.
• Improve the access of institutional credit to rural small land holders/ landless
women through a viable credit delivery mechanism system.
• Preparation of operating procedures manual.
• Enlistment of manufacturers/ suppliers of tractors and circulation of prices of
various makes of tractors.
• Perform any other job assigned by the higher management.
Functions
• Examine/process the rescheduling and final settlement of Agri loan cases and
to prepare memos for approval of competent authority.
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• Formulate policy of honorarium to Bank’s Field staff in recognition of their
good performance.
• Effective utilization of mandatory provisions of land revenue act. (For the time
being it is suspended).
• Deal with the cases of big and influential/difficult borrowers and Bank’s own
employees with a view to recover dues.
• Analyze on request periodical recovery statements received from the zones for
submission to the higher management.
Functions
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• Maintain an up to date repository on policies of GOP on agriculture/ rural
sector and identifying the effects of these policies on ZTBL and the economy
and keeping ZTBL management abreast.
• Maintain library at ZTBL, H.O. and update adequate number of relevant books
and publications on the subject of agriculture/rural sector, Agri-financing and
related areas.
Functions
• Provide in compliance with the guidelines modern buildings for Bank offices
at suitable places either by construction or hiring and arrange the proper
maintenance/refurbishment. Medical Services Department’s guidelines, if any,
must be complied with. Provide and maintain office furniture and fixture.
• Ensure regular and efficient services like AC, water and gas etc.
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• Maintain official vehicles properly and to watch their economic use in the best
interest of Institution.
• Arrange receipt and dispatch of mail on daily basis and its efficient delivery
through couriers/special messengers (Dispatch Rider).
• Provision of all types of printed forms, registers, ledgers, other documents and
negotiable instruments to Field offices and H.O. divisions/ departments. etc.
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Chapter Four
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• Ensure up to date employee knowledge and skills within human resource
functions.
• Represent the Bank in courts of law and other forums.
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• Establish human resource requirements through a human resource plan
covering qualitative and quantitative aspects i.e. ensuring the right man for the
right job and employee headcount/ manpower numbers.
Actual Functions
• Dispose off service matters received from officers and other employee
representative bodies.
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• Maintain personnel files and record of all employees.
• Any other individual service matter case as per policy/ instructions of the
Bank.
Actual Functions
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Actual Functions
These functions are also function of recruitment and service matter units. It means
their responsibilities are mixed with each other.
Actual Function
In above there is ambiguity. This function is not properly done by the unit. They take
assistance from some other units.
• Resolve conflicts professionally to the mutual advantage of the Bank and the
employees.
Actual functions
There is two employee unions one is with management other is in opposition. During
the internship I observe here that there was a conflict between management and
unions but bank was failed to solve this conflict.
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4.2.6 Performance Management Department
Actual functions
Actual Functions
As mentioned above, their duties are to arrange and maintain old record. But in
reality, this record is saved in the form of manual. So they lose it after some years.
Actual functions
Some matters deal by respective units. Like retirement cases deal by compensation
and retirement vice president and others.
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The relationship among branches and Head office is not up to the mark. The
communication system is ineffective with those branches which are located in the far
flung and remote areas of the country. They mostly use fax system, emails, and
telephone. There is no any concept of online system at present like the other banks.
Any information or order which head office SVP want to share with Zonal office
chief he sends him fax or emails. In some branches computer are available but the
technical expertise are not available to run. Mostly work is done through manually in
black and white. ZTBL have vision to modernize its whole branches. Due to manual
work its efficiency of work decreases so to increase its efficiency ZTBL should make
its communication system fast, reliable and effective.
Any order comes in the form of files these orders send by VP or OG2 officer in
relative branches. For getting feedback from branches they have fax machines and
telephone lines.
Divisions 12
Staff colleges 2
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Audit and control units 12
Vigilance unit 12
The employees of the bank are trained in the staff colleges of ZTBL. In the whole
country there are two main staff colleges, where the employees are given training.
One is situated in Islamabad and other is in Karachi. Mostly training is given to those
who are new or very old employees. It is duty of management to identify what type of
training a person requires according to his performance. Mostly computer training is
given to employees in staff colleges.
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4.8 Workload on Employees
There is more than work load on OG1 & OG2 and on lower staffs because mostly
work in ZTBL is manual work. Every case is filed separately, if they want to
introduce new schemes they have to make its file, this file circulated into whole
division and also in front of higher management.
In ZTBL there are two systems of salary structure. One is lump sum salary under the
staff regulation (SR: 2005) and other is pay scale according to the agriculture
development bank ordinance 1961 (SSR 1961). In ZTBL both the systems are used,
mostly officers adopted Lump Sum salary, but clerical staff they have the old system
salary. In old salary system, employees can get pension but in lump sum system he
cannot get the pension.
Promotion criteria in ZTBL based on two systems one is Seniority comes fitness and
other is merit base promotion criteria. Seniority come fitness is for all employees but
merit is specified for AVP, SVP, and EVP.
A criterion for seniority comes fitness is:
Length of service means, minimum eligibility period for promotion, for clerical staff
is 4 year and for OG1, officers, senior officers is 7 years. Total marks for promotion is
100 the one who get 60 they are considered as qualified. Total marks are for
promotion division are 100.
Division of marks is
ACR 90
DIB 10
But the qualifying marks are 60. the bifurcation of ACR for we take example of
behavior one give 10 marks for very good, other give 8 marks for good, 5 marks for
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average, 2 ,marks for below than average, zero marks for poor. Diploma must in
between 1-10. Now I discussed some point when ACR deducted.
1) Any employee who has adverse effect then one marks deducted from total ACR
values.
2) If any employee got major penalty then 5 marks deducted.
3) Any employee who does not avail any type of training then 3 marks deducted from
his ACR.
Bank pays bonuses to its employees who perform well in their field to motivate and
raise the morale of the employees. The employees who are hired under the (SSR
1961) are paid pension and the others who are hire or transferred them selves to SSR
2005 are paid a lump sum salary which consists of all other allowances and
incentives.
The communication system inside the head office as well as in between the head
office and branches is ineffective because work done by employees through telephone
and through fax machine, file moving system takes a lot of time because it has to pass
through so many tables in files which decreases the efficiency of work. This work
efficiency delivers a wrong message to the customers and also increases the cost.
The filling system in ZTBL is mostly manual and the old files are stored in a store
where there is the danger of damage of files by insects and the manual record keeping
also consumes time to find the old data from a bulk of files.
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4.14 Morale of Staff
The morale of employees is not very high because when they perform better then they
are not rewarded with certain benefits accordingly. So to boost the morale of
employees it is necessary to the management to praise and gave them rewards in
monetary and non monetary terms. Another reason of low morale is because some of
the employees who are permanent their perception is that they have permanent job
and their job is secure.
The physical facilities of ZTBL to its employees is not satisfactory because there no
any proper facility of sitting in the rooms, the atmosphere of office is very different,
three to four officers sit in one room and rooms are over crowded with their assistants
and also with customers. Filling system is manual and cupboards are full with files,
and there is no space for telephone on the table. Bank provides computer to those who
have the knowledge of using.
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Procedure of Performance Appraisal
There are two appraisers rate, a single appraisee and one out of them is the direct
supervisor of the employee and other is the one who weekly visited the departments
of head office or the branch, Zonal chief, President Etc. The direct supervisor is under
whom the employee is working and the other one validate the function of the
departments of bank to be effective or ineffective. Performance of an officer is
appraised annually at the close of each calendar year and also on the transfer of the 1st
appraiser or appraisee, if any one of them is transferred after three months after the
annual appraisal has been made. Appraisers have to maintain a performance record of
concerned officers and the opinions expressed in the performance appraisal should be
based on the record so that, if called upon, the appraisers could justify their opinion
rating in all parts of performance appraisal.
Should be consistent with and complimentary to each other so that accurate and
transparent results could be achieved
The employee must have to achieve more than 30 percent rating otherwise he/she
would be fall under the adverse scores. Performance management department further
give a chance to employee, so that they can make their position clear and opinion on
their performance evaluation. So that if other factors may involve in it he/she can
inform it to the higher authorities like biasness factors or personal problem. The
period is well defined for preceding the case of the employee. Performance appraisal
form consists of eight parts in total and is launched in 2006 in the bank. In the
beginning it was used just for the acceptance and understanding of this appraisal
system by the officers, the responses by the officers were satisfactory; the evaluation
by this form did not affect the pay for the year 2006 of employees, for the year 2009
the preparation is for its usage and applicability in the performance increment for the
officers
Part I of form
Part one of the performance appraisal form includes all the bio data records of the
employees which include name, designation, position, place of posting, qualification,
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already taken training records, information regarding achievements of rewards or
punishments. One of the open ended portions of the form is to be filled by the
employee or the appraisee in the part one of the performance appraisal form of
officers.
Part II of form
The parameters are used in Performance appraisal form which helps the
administration about the competencies and skills level of the employee for the
purpose of training and rewards/ punishment needs could be identified. These
parameters include loyalty with organization, integrity, job knowledge, interpersonal
and human relations skills, creativity, initiative and drive, communication, teamwork,
leadership, decision making, reliability under stress, planning and organization,
adaptability/flexibility, development of the subordinates, and punctuality. This portion
is to be filled by both of the appraisers.
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ACR is used for the evaluation purpose of the clerical and non clerical staff of the
bank, it consist of the attributes same like performance appraisal form, the rating
procedure is different to some extent but the criteria for measuring the performance is
same. Below 30 scores are considered as the adverse scores and appraisee are invited
to give their personal comments and opinion about it
4.19 Policies
For policy making there is a department whose name is Policy and Regulation
Department. Its aims and objectives are as under.
Aim
• Provide best human resource management solutions.
Objectives
• Evolve HR strategy and development of policies, programs and procedures in
line with HR strategy.
• Cascade down HR programs for implementation.
Chapter Five
Analysis
5.1 SWOT Analysis
Under this chapter strength, weakness, opportunities and threats are discussed. ZTBL
is leading bank in Pakistan in providing different type of loans.
5.1.1 Strength
1) ZTBL is the only bank in the country which lends the loans to the farmers and it
has no competitors
2) ZTBL offers loans to its customers through one window operation at the door
steps.
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3) ZTBL has its own training centers named as staff colleges where the employees
are trained with the passage of time according to needs and requirements.
4) ZTBL is one of the largest banks in Pakistan which gives credit to the farmers
and introduces new technologies for them, so it is playing a great role in the
economy of the country.
5) Too many facilities are provided to the staff like heath facility, transport facility,
pension, loans for their house buildings, for car and personal loans. It is the
motivational tool for the employees. Also bank gives job to the son and wife of
the employee in case of his /her death.
6) There is a friendly relationship between the employees of the bank; any employee
can meet with the high authority without proper hierarchy. That result in high
moral.
7) Data is not only recorded in paper work must also be in computers.
8) All the departments are interrelated that facilitate in policy making.
9) Complaint centre and complaint boxes have been made and the letters are checked
on weekly basis.
10) Performance of all the branches are controlled and evaluated on the basis of
Monthly operation report receive and check by the branches development and
control department.
5.1.2 Weakness
1) ZTBL cannot compete other banks because it has no any online transaction
system
2) ZTBL has staff more than requirement which increases its cost and stands as a
big hurdle in the growth of the bank.
3) ZTBL is a government owned bank and its performance is highly influenced
by the wrong government decision and also due to political references.
4) There is no proper performance evaluation and check of the employees due to
which the staff did not take keen interest in their work.
5) There is mostly less number of highly qualified and efficient officers in the
bank, employees graduated or masters in Pakistan studies and Urdu are also in
the accounts and other important departments of the bank, because mostly
recruitment has done in references.
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6) Bank deals with giving loan to the farmer who is mostly not educated thus it
becomes difficult to get loan because of complex procedure.
7) As downsizing has been done but the staff is still too much.
8) Lower staff of the bank doesn’t deal outsiders in a correct way.
9) Mostly employees don’t spend their working time effectively.
10) There is no computerized network between the branches and head office due
which too much cost is to pay.
11) Most officers were involved in frauds in the past.
12) There is no proper way to inform the farmer from the latest introduction of
agricultural development technology to the farmers.
13) There is no proper accountability.
14) Mostly I noticed during my internship that employees come at 10’oclock and
then leave his seat with out informing any one and spending their time in
cafeteria with other companions. After lunch break there is no work done in
most departments and there is no proper control system to check them.
5.1.3 Opportunities
1) Bank can increase its profitability by introducing new short term loan
schemes.
2) Currently the ratio of loan distribution is less because the needs of agri- sector
of Pakistan cannot be fulfilled. ZTBL can avail this opportunity by increasing
the ratio of loan disbursement.
3) ZTBL has a vast network and it has also the access to remote areas of the
country. The bank can avail a facility of bringing foreign remittances inside
the country which will be a source of income for the bank.
4) The bank can increase network of branches further and shift excess
employees to these branches with any increase in the cost.
5) The bank can establish its own fertilizer industry and directly forward
fertilizers to the farmers.
5.1.4 Threats
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1) The other financial institutions have started to forward agricultural finance to
farmers which is a big challenge for the growth of ZTBL to compete with those
competitors.
2) Risk of recovery of loans because it depends upon the crops out put of the
farmers.
3) Non professional staff is harmful for the effectiveness and
productivity of the organization.
4) Low recovery rate by the customers which deteriorates the
bank economically.
5) Changing of government is a big threat because new
government always brings new policies and ZTBL is dependent on the
government rules and regulations.
6) No proper accountability by the employee’s of the bank.
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The state bank of Pakistan legally influences the operations of ZTBL by issuing
prudential regulations which restricts the operations of the bank.
The loans of ZTBL are being write off by the statutory order i.e. (by president or
prime minister) which increases the bad debts of the bank and loss as well.
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5.0 Finding and Recommendations
5.3.1 Findings
During my internship at ZTBL, I found that there are various areas, where
management attention is required. In ZTBL employees are use to inefficient working
environment, some of those just come to mark present and only there are few
employees who are efficient and well qualified..
ZTBL communication is inefficient, they have their personal conflicts. Data is not
available in certain cases; employees do not have know-how about their work due to
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lack of training. Work atmosphere is inefficient due to Lack of technological skills.
Uncomfortable atmosphere of branches of ZTBL.
5.3.2 Recommendations
I have worked for six weeks in the bank as an internee, in the light of my personal
observation, interviews conducted with different people and reading different
documents. I will recommend the following.
1) As most farmers are illiterate in Pakistan thus credit procedure should be simple
one, so that it becomes ease for the farmers to get loans. Like they give on loan on
the base of farmer land or other property but if there is a person who is good
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farmer but is poor then how he will get the loan, he can only give you other farmer
in security.
2) The bank can reduce its cost if it reduces the insufficient staff.
3) Farmers should be involved in such a way that they consider branches as a home
so that they can get more and more information from the branch offices and there
must be friendly relations between farmers and branch staff. Like branch manager
can visit farms and can meet with farmer
4) In the head office there must be proper time management for the employees so
that they can do their work on time and proper control system must be there that
no one can leave the office before the time and also that no one can be late.
5) As the computers in the head office are too much old so the whole computer
system should be changed. And bank should automate its branches.
References
Brief history of Zarai Taraqiati Bank Limited. (2009). Retrieved August 25, 2009, from
http://www.ztbl.com.pk/breifhistory.html#
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Zarai Taraqiati Bank Limited, (2008), annual report. Islamabad.
Vilklanova, P., Bernardin, H.J., Dahmus, S., Sims, R. (1993). ter leniency and performance
appraisal discomfort(p.53). London: Macmillan.
Agri-technology of Zari Tarqiati Bank Limited. (2009). Retrieved July 15, 2009, from
http://www.ztbl.com.pk/agritevh,html.
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