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Internship report

Submitted by: Saima Hamid




1.1. About ZTBL (History)....................4

1.2. Objectives...6

1.3. Organizational Structure....8

1.4. Products or Services Offered.8

1.4.1. Product/Service Details (A).....................................8

1.4.2. Product/Service Details (B).....8

1.5 ZTBL services..11

1.6 finance and accounts division..12

1.6.1 Center accounts department..13

1.6.2 head office accounts department..17



2.1. Details of Training week wise ..27

2.2. 1st and 2nd


2.2. 3rd and 4th week.28

2.3 5th and 6th week .28

2.4 How internship experience impacted my


2.5 swot analysis29



Appendix ..........34


Zarai Taraqiati Bank limited 2

Personal Resume...............3

Executive summary
Banking is one of the most important and sensitive business. This report is about one of the
leading agriculture bank of Pakistan known as Zarai Taraqiati bank limited. ZTBL is one of the
most important roles in the development of the agriculture sector in Pakistan. On 14 th December
2002, under the ordinance of the agriculture development of Pakistan nineteen sixty one, ZTBL
was incorporated as public limited company. The bank serves its customers in the form of its
customized products. It is providing both types of services financial and non financial mostly to
its clients of rural areas which is about 68% population of Pakistan. The bank has country-wide
network in the form of 394 branches and is serving round about half of the million clients

Zarai Taraqiati Bank limited 3

The Zarai Taraqiati Bank Limited (ZTBL) formally known as Agricultural Development Bank
of Pakistan is a public sector largest financial development institution with a wide network of 27
Zonal Offices, 09 Audit Zones and 342 branches in the country and planning to expand its
outreach to a large customer base and function as a viable commercial entity.

1.1 About ZTBL

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 knowhow. 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.

It was considered after independence of Pakistan that the existing

institutional sources i.e. Taccavi and Cooperatives, were insufficiently
meeting the credit needs of farmers. Need for establishment of a third
source of agricultural credit was essentially percolated so as to fulfill the
credit requirements of farmers not only for Production but even for the
development purposes. Consequently, Agricultural Development
Finance Corporation was brought into existence in 1952 under a Central
Act for the purpose of expanding financial facilities and promoting the development and
modernization of agriculture in Pakistan. Subsequently in 1957, Agricultural Bank of Pakistan
was established. The Bank advanced both short (for Production) and long term (for
Development) loans. Both these institutions were merged together as Agricultural Development
Bank of Pakistan in February 18, 1961. As required under section 3 of the Agricultural
Development Bank of Pakistan (Reorganization and Conversion) Ordinance, 2002, Zarai
Taraqiati Bank Ltd was incorporated as a public limited company under the Companies
Ordinance, 1984 on October 23, 2002. On November 18, 2002, all the assets
Reason to Change ADBP to ZTBL

The restructuring of ADBP is done to uplift the agriculture and rural sector by raising farm productivity,
streamlining the institutional credit and increasing the income generating capacity of the farming

KARACHI (December 14 2002) : The Federal Government has converted the Agricultural Development
Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL) and the new venture has started its
operations with immediate effect.

The corporate structure of ZTBL in risk mitigating factors and organizational optimal mix stands geared
up to acclimatize with agriculture needs and to be a proactive financial institution for economic
development and sustainable agriculture growth.

Zarai Taraqiati Bank limited 4

The Principal Officer of the ZTBL the president the current President of Zarai Taraqiati
Bank Ltd is Muhammad Zaka Ashraf who took over the charge from Mr. Mansur Khan
in September 2008 for a three years term. He is a Chairman of Ashraf Group of
Industries and was served on important key posts in Government as well as in Private

Board of Directors

Mr. Syed Qamar-uz-Zaman Shah, Chairman Board

1. Mr. Muhammad Zaka Ashraf, President & CEO

2. Mr. Shafqat Hussain Naghmi

3. Mr. Iftikhar Khan Mohammad

4. Mrs.Nazrat Bashir

5. Dr. Khalid Ahmad Khokhar

6. Mr. Imam Bux Sheikh

7. Mr. Tauqir Ahmad Faiq

8. Mr. Muazam Ali, Company Secretary

KSSL Subsidiary of ZTBL

To provide support staff to ZTBL & under takes its non core activities.

KSS Operation

Kissan support services operate under its Memorandum & Articles of Association.


To provide to the Bank all kinds of support staff and ancillary services
To plan, organize and establish training facilities to impart training to the banks staff
Drip Irrigation System To assist the bank clients in marketing of their product and provide storage
To assist the bank clients in marketing of their product and provide storage facilities
To provide welfare services to the employees of the bank.

Zarai Taraqiati Bank limited 5

To carry on any business, which may seem to the company capable of being conveniently carried
To liaison & establish contracts with agricultural research organizations for development of
efficient, effective and appropriate technologies
To carry on business of providing consultancy, advisory and other agency services and support
services to Zarai Taraqiati Bank Limited
To provide to the Banks clients quality products and services for efficient and improved farming

1.2 Objectives

Helping the farmer community to raise their productivity and also to increase their levels
of income by using delivery of credit on time, ancillary services and advisory.
To build the image of ZTBL as a proactive, client friendly, financially and operationally
sustainable with indigenous product deployment.
To strengthen the agriculture sector.
The ZTBL as a commercial bank mobilizes rural capital formation to commercialize the
agriculture sector by delivering the true value of credit to the client.


Tb yo d e lv i ev le o r pi n ag n td h eo p e r o a d t ue c t h ae n z d t b s l e ar vs i c oe ms a m t el orcw i a f l i ny a v n i c a e b s l e i t b s a e n r vk e w s i t h f o c u s o n
tr hu er a n l e a e r de as s o af n t hd e a fg a r i mc u e l rt us r e f i n a n c e .


Restricting plan of ZTBL

The restricting means activity involving expansion or contraction of organizations operations or

changes in its assets. The restructuring plan includes the following factors:

Zarai Taraqiati Bank limited 6


The ZTBL establish and environment that facilities good governance and accountability.


The ZTBL modernized operations through use of technology, networking and communication

Business processes

The streamline products and delivering systems of ZTBL are to reduce transaction costs,
simplify operations and increasing outreach.

Zarai Taraqiati Bank limited 7

1.3 Organizational hierarchy

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Zarai Taraqiati Bank limited 8

1.4 Products and services

Ztbl offer products and services which are financially good for the people to raise their income
and to increase their productivity.

1.4.1 Human recourse development

Having a good HRD department ztbl is grooming the standards and skills of their employees and
also strengthening the training capacity

1.4.2 Information technology

Ztbl introduced a new software and hardware system known as ERP to support their
management information system, and accounting system.

Zarai Taraqiati Bank limited 9

Shareholding of ZTBL

Sr. no Names of shareholders Number of shares Amount (RS.)

01 Government of Pakistan 1251189067 12511890670
02 Government of Punjab 277100 2771000
03 Government of sindh 119000 1,190,000
03 Government of KPK 71740 717400
04 Government balochistan 35900 359000
05 Government of Erstwhile East 527500 5275000
Total shareholdings 1252220307

Nature of business

Zarai Taraqiati bank is to provide credit to the farmers, including hiring and renting of anything
which it may advance way of loan and the provision for ware hosing facilities of such terms and
subjects to such conditions as may be prescribed by its rile to agriculturists for the purpose of
agriculture and to persons engaged in cottage industries in rural areas and provide sustainable
rural financing services, particularly to small farmers.

Types of loans

Banks provide loans through various products and schemes for short, medium and long term
depending upon the cash flow of the borrowers. The bank gives special focus and importance to
fulfil the genuine and real needs of small farmers in terms of production loans (fertilisers and
seeds, pesticides and labour charges etc) as well as for working capital purpose. The bank also
provides development loans to farming community like tractors, loans for poultry and livestock,
fisheries, plantation and irrigation schemes.

Maximum credit limit

Maximum credit limit of loan is RS 1.00 million per borrower.

Lending criteria

The bank advances preferably to small farmers and following criteria is observed in over all

o Subsistence farmers 70 %
o Economic farmers 20%
o Big farmers 10%

Zarai Taraqiati Bank limited 10

o Production loans 77.5%
o Development loans 22.5 %


The bank provides loans under agri-pass book system as well as collateral acceptable to the bank.
Simplification of loan documents is done in order to facilitate the farmers. The bank has
simplified the loan documentation to be applicable for three years of loan periods. The main loan
documents which are presently being used in the branches of banks are as under application form
IB-& revised loan agreement-cum-guarantee charge creation certificate/sanction mutation
entered in the bank favor sanction latter for loan

1.5 ZTBL services

o Supervised agriculture credit scheme
o Zarakhazi (one window operation)
o Sairab Pakistan Scheme
o Sada bahar scheme
o Lockers facility

President's Secretariat
HR Division
Finance & account division
Credit Division
Research & Planning
Information System
Recovery & SAM
Field Audit
Legal & Vigilance
Agriculture Technology

Zarai Taraqiati Bank limited 11

I worked as internee in finance and accounts department.
Functions of the FAD

The main functions of the FAD are given as under:

To provide a proactive financial policy and timely strategic financial planning and
risk management.
To manage the asset and liabilities of bank
To oversee the internal processing of financial transactions Accounts, budgets, and
credit of the bank.
To reconcile the funds given to all zones and branches.
Functions of FAD also involve monitoring and controlling the banks loan and
The cash inflows and out flows are also managed by FAD.
To maintain a books of accounts.
FAD also coordinate a business planning and then facilitates it, budgeting and to
formulate the budgeting estimates of revenue and capital expenditure.
To manage and then correcting the accounts of zones and braches.
Develop the financial statements of zonal offices and braches, in order to make
financial decisions.
To prepare yearly, half yearly and quarterly financial statements and its agenda for
presentation to the Audit Committee and the BOD & also to prepare annual capital
adequacy ratio for certification by external auditors.
Finance and account division ensure that all collections are received and financial
obligations are met.

In order to classify the finance and accounts division of ZTBL, there are four departments, which
plays very important role in financial affairs and keeping the records of all the transaction which
are done through bank zones and branches, preparation of accounts, financial statements of the
bank, distribute and to reconcile funds of all zonal offices and branches of the ZTBL Heads
Finance and accounts department consist of four major departments and their sub departments/
sub units.
1. Central Accounts Department (CAD)
a) Policy Unit
b) Accounts Unit
c) Tax Unit
d) Fixed Asset Unit (FAU)
e) Pre-payment Verification Unit (PVU)

Zarai Taraqiati Bank limited 12

2. Head Office Accounts Department (HOAD)
a) Payroll Unit
b) Fund Unit
c) Payment unit
d) Intra Branch Transaction (Reconciliation) Unit (IBTU)

3. Regulatory Reporting Department (RRD)

a) Regulatory & Internal Reporting Unit (RIRU)
b) Financial management Information Unit (FMISU)
4. Budget & Fund Reconciliation Department (BFRD)
a) Budget Planning Unit
b) Budget Analysis Unit
c) Treasury Unit
d) Fund Reconciliation Unit (FRU)



Many accounting policies, procedures and methods and used in the CAD. To present the true
financial position of the bank in financial statements; the accountants formulate the accounting
policies and methods. This department maintains the actual accounts of the ZTBL. In this
department the balance sheet and profit and loss account is also prepared for financial year, to get
idea of profitability or loss and to make financial decisions.

The aim of CAD if to formulate the accounting policies, methods and procedures with a view to
present the true financial position of the bank in financial statements.


o Formulate and maintain accounting policies and procedures manual in line with
applicable accounting standards ensure dissemination and implementation across the
o Preparation of financial statements as per requirement of statue.
o Ensure proper accounting of assets, liabilities, income & expenditure.


o Issuance of instructions relating to accounting policies and procedures.

o Allocation of specimen signature numbers to the authorized signatories of the branches

and maintenance of signature booklet

Zarai Taraqiati Bank limited 13

o Notification of schedule of bank charges

o Maintenance and updating of chart of accounts (G.L. heads) for recording of financial

o Preparation of periodical financial statements of the bank and to deal with all related

o Issuance of guidelines regarding periodical closing of accounts

o Dealing with all corporate tax matters and liaison with tax department/tax advisors/
consultants etc.

o Issuance of instructions regarding deduction of tax at source.

o Compilation of fixed assets schedule of the branches/ho departments

o Follow up/collection of fixed assets schedule along with supporting documents from
branch as well as H.O. Department.

o To arrange credit rating of the bank.

o Coordination with internal/external auditors /SBP inspection team.

o Conduct pre payments verifications of sanctions pertaining to.

o Any other accounts related assignments entrusted by the competent authority.



o Coordinate with concerned departments of is division for timely production of statement

of affairs.

o Arrange compilation/merger of statement of affairs on country level.

o Compile balances under relevant group of heads from trial balances for preparation of
financial statements.

o Produce list of abnormal entries/balances for rectification.

o Deal with all matters relating to software development and system analysis and
maintenance of statement of affairs.

Zarai Taraqiati Bank limited 14

o Prepare quarterly, half yearly and yearly financial statements and its agenda for
presentation to audit committee & board of directors.

o Provide statement of affairs of every branch and country to auditors for auditing

o Prepare annual capital adequacy ratio statement for certification by external auditors.

o To coordinate with external auditors, commercial auditors & SBP inspection team
regarding periodical accounts

o Perform any other assignment as and when assigned by the competent authority.


o Issue guidelines regarding deduction of tax at source under the income tax ordinance,

o Coordinate with tax consultant, SBP & income tax authorities on tax issues.

o Pursue the tax refund case with income tax offices, through tax consultant.

o Prepare statement & payment of advance tax u/s 147 of the income tax ordinance, 2001.

o Guide branches for settlement of tax issues.

o Attend tax related audit observations and arrange compliance thereof.

o Perform any other assignment as and when assigned by the competent authority.


o Verify all payments relating to head office.

o Check availability of sanction of the competent authority.

o Check competence vis--vis financial power of approving authority.

o Check budget/ceiling.

o Check completeness of documentation and verification of arithmetic accuracy.

o Check procedural compliance.

o Perform any other assignment as and when assigned by the competent authority.
Zarai Taraqiati Bank limited 15

o Devise accounting procedure regarding accounting in the branches as well as at head


o Revise/circulate revision of mark-up/return rate for compliance by the branches.

o Deal with management letter & executive summary.

o To arrange payments to the external auditors bills.

o Coordinate with external auditors.

o Arrange compliance of internal/external audit observation relating to field & head office
in respect of accounting matters.

o Coordinate with other departments in the head office on policy matters.

o Maintain personal files of the employees, deal with their leave cases and other
administrative matters.

o Up-date specimen signatures booklet for use by authorized signatories in branches/head


o Deal with policy matters relating to maintenance and operation of accounts.

o Prepare bank charges schedule and circulation thereof amongst the branches and
submission to SBP on half yearly basis.

o Provide guidelines for adjustment of suspense account.

o Allocate new G.L. Heads for accounting purposes.

o Provide guidance to the branches regarding rectification/ settlement of accounting errors

and audit observations.

o Coordinate with credit rating Company for providing information for credit rating of the

o Issue instructions relevant to books of accounts

Zarai Taraqiati Bank limited 16

o Perform administrative functions for the department such as sanction of leaves, budget
preparation & other miscellaneous matters of the department.

Fixed Asset Unit

o To timely dispatch of format for fixed assets schedule to the ZTBL Head Office
departments, zonal offices and branches.

o The persuasion & collection of fixed assets schedule along with supporting Documents
from branches as well as from ZTBL Head Office departments.

o To reconcile the data with statement of affairs of the concerned zonal Offices and

o To compile or summarize the fixed assets schedule on country level. To maintain the up-
to-date record of fixed assets at the zonal offices Branches and the ZTBL Head Office.

o To compile the addition and deletion of fixed assets on quarterly basis by The ZTBL
Head Office, zonal offices and branches.

o To monitor and verify the depreciation charged by departments of the ZTBL Head Office,
zonal offices and branches on quarterly basis.

o To make the adjustment of depreciation charged under intimation to concerned accounts

units and to verify the disposal of fixed assets booked by the branches.
o To calculate the amount for the deferred tax assets.



The objective of head office accounts department is to maintain accounting functions of all over
the bank and to centralize the accounts. in head office accounts department the specifically
designed accounting software and the COBOL administrative system is used for recording the
transactions, financial information and to deduct tax from salaries of the employees.


Expeditious processing of payments to build proper image of the Bank in vendor

industry/community whilst upholding controls.
Welfare of ZTBL employees through Trust Funds.

Zarai Taraqiati Bank limited 17


Disbursement relating to Head Office.

Pay-out salaries and allowances to Head Office employees.
Maintenance of subsidiary ledgers of House Building, Conveyance, Rain and Rent
Advances, Suspense Accounts, Sundry Deposit Accounts, Items in Transit Accounts and
Bank reconciliation.
Operations of Trust Funds of employees and maintenance of Books of Accounts
including finalization of financial statements.
Investment of Trust Funds as per Trust deeds.

Assigning of signature numbers to the authorized signatories of the branches and

maintenance of signature booklet.
Notifications of schedule of Bank charges.
Maintenance and updating of chart of accounts (GL heads) for financial
transactions/accounting records.
Issuance of instructions to all offices/branches of the Bank regarding deduction of tax at
Updating/matching and merging of G/L heads and detect/point out of outstanding entries
of inter branch transaction account.
Booking of expenditures of Head Office units in the field.
Payment and maintenance of record of House Building and Conveyance Advances of
officers/staff posted at Head Office.
Make payments against all expenses, supplies and services incurred/acquired at Head
Office and to deal with all matter pertaining to such payments.
Maintain subsidiary ledgers of suspense/sundry deposits accounts pertaining to Head
Office employees. Reconciliation of outstanding entries and items in transit of accounts
maintained with Head Office Branch.
Reconciliation of accounts maintained with other Banks by Payroll Unit.
Operation of employees Trust Funds numbering eight.
Administrative functions of the department such as sanction of leaves, approval of tour
programs, approval of travel allowance etc are also the functions of head office accounts
Units of HOAD


Ensure timely inter branch reconciliation.

Provide list of outstanding entries to the branches for reconciliation.
Coordinate with concerned departments in the Head Office for follow-up action and
timely reconciliation of outstanding entries.

Zarai Taraqiati Bank limited 18


Preparation of payroll of officers/staff and deputation/contract employees posted at Head

Office and disbursement thereof.
Preparation of remuneration of Senior Management Team and disbursement thereof.
Preparation of Bonus, Encashment of leave and arrears of salary of officers/staff
including deputation/contract employees posted at Head Office and disbursement thereof.
Payment of Overtime, Education Allowance/Stipend and Lecture Fee.
Preparation of cheque in connection with General Provident Fund, Benevolent Fund,
Pension contribution, HBA/Conveyance Advance etc in respect of employees on
deputation posted at Head Office.
Issuance of Last Pay Certificate (LPC), No Demand Certificate (NDC) and salary
Payment and maintenance of record of House Building, Car, Motorcycle and Rain
Advances etc. to officers/staff of Head Office.
Responding and originating of advices of House Building, Car, Motorcycle and Rain
advances of transferred/posted employees at Head Office.
Half yearly/yearly closing/balancing of accounts of House Building, Car, Motorcycle and
Rain advances.
Calculation of mark up on yearly basis on the accounts of House Building, Car and
Motorcycle Advances.
Posting of monthly recoveries of Advances against each employee.
Issuance of Outstanding Balance Certificate in respect of officer/staff advances on
monthly basis through salary slips.
Responding of advices regarding pay and allowances of all Head Office units in the
field/Murree Rest House/players in the field.
Maintenance of record/responding of advices regarding expenses of all Head Office units
in the field.
Payment/Responding of advices regarding House Rent to retired employees of Head
Office/field and employees retired under GHSS 1993.

Zarai Taraqiati Bank limited 19


Make all payments at Head Office

Deduct income tax at source on payments where required under Income Tax Ordinance
2001, deposit the same in State Bank of Pakistan, provide detailed information to Income
Tax Department and provide tax deduction certificate to the parties.
Maintain books of Accounts of Head Office and prepare periodical statutory
returns/statements in respect of Head Office.
Maintain subsidiary ledgers of suspense/sundry deposits/rent advance accounts pertaining
to Head Office employees.
Pursue for clearance of ZTBL Central Accounts entries outstanding/pending against Head
Reconciliation of items in transit accounts and to pursue adjustment/clearance with
account maintained at Head Office Branch.
Reconciliation of accounts maintained with other Banks.
Responding of advices regarding expenses of medical, petrol ceiling and driver allowance
to executives/officers/staff of Head Office.
Responding of advices regarding house rent ceiling & medical expenses.
Responding of advices regarding expenses paid under different heads.
Cost of dead stock items debited to field functionaries on its shifting to field.
Activation of new GL Heads/Departmental codes.
Debit cost of printed/computer stationery to the Zonal Offices/ branches.
Collection of Zakat from the branches and deposit in SBP.
Coordinate with External, Internal, Commercial Auditors and SBP Inspection team and
submission of replies thereof.
Responding of advices originated on account of mark up on ZTBL Central Account.
Daily processing of vouchers of Head Office, and preparation of Batch Total and Clean
Daily stitching of vouchers, maintenance of Voucher Register, arranging vouchers in
chronological order and safe custody in Voucher Room.
Preparation of annually, semi annually, quarterly and weekly reports like Weekly
Telegram, Statement of Affairs (ACF-37), GL Abstract, Clean List, GL Move and
Statement of Accounts (ACF-47).
Processing of monthly expenditure file for reporting to Budget and Funds Management
Department for analysis thereof.
Backup of GL, Weekly Telegram, Suspense/Sundry, Master Vouchers Transaction,
Suspense Accounts for SBP, Central Accounts, unadjusted and Batch Control files on
monthly basis.
Quarterly/Half Yearly/Annual merging of volumes/files.

In employee funds unit, I have learnt how as a fund the deductions are made in employees
salary. The main function of this unit is to maintain the book of accounts, employees

Zarai Taraqiati Bank limited 20

contributory funds such as contributory provident fund, and the investment of surplus funds in
approved schemes.
Funds in ZTBL have 10 types of deductions which are:

ZTBL Employees benefit fund

Benevolent fund (officers)
Benevolent fund (staff)
General provident fund (officers)
General provident fund (staff)
Contributory provident fund
Pension fund
Gratuity fund
Employees provident fund
Gratuity 2005 Fund trust
Payment of funeral charges to the families of clerical/non-clerical employees on death
during the service out of BF.
Investment/encashment of Trust fund with Government approved schemes.
Renewal of exemption certificates of Trust Funds from Commissioner Income
Application of profit on General Provident Fund/CP Fund accounts.
Prepare trial balances of all Trust Funds for the audit purpose.
Annual Audit of all Trust Fund accounts by a Chartered Accountant Firm.
Issue GP Fund/CP Fund updated confirmation slips on all Pakistan bases to the
permanent employees.

Regulatory reporting department sends reports to State Bank of Pakistan. The ZTBL has to
communicate and submit different returns to the SBP. These reports are sent by 2 ways, one ways
is to use the courier service and 2 nd is to send online. In this department, I learned to prepare
balance sheet, income statement and how to find ratios. The Regulatory reporting department
basically gathers, process, analyze, customize and provide with the information to various
stakeholders to meet their specific requirement. The main aim of the RRD is to compliance to the
statutory reporting requirements & makes periodic financial reporting to the management. This
department gathers information from zone offices, branches, ITSSD, CAD etc and reports the
data to the SBP after consolidation.

Preparation of financial plan for Banks credit limits, funds review and their application.
Financial Planning and Control for achievement of corporate goals.

Zarai Taraqiati Bank limited 21


To improve effectiveness in meeting statutory reporting obligations.

To prompt and accurate analysis to aid decision-making.
To make periodic financial reporting to the management.


To redesign system of data capturing, its consolidation and subsequent

Reporting as per regulatory requirements.
To ensure implementation of changes in reporting requirements as amended
From time to time and to design and implement internal reporting mechanism.
To coordinate with different departments and zonal offices for collection of requisite data
and to Issuance of guidelines for preparation and consolidation of data.
To arrange compliance of internal or external audit observation on regulatory reports.
To carry out periodic review and analysis of financial results and its reporting to

o Weekly Statement of Position


o Statement of Cash Balances with Bank's Abroad

o Statement of Prize Bonds
o Monthly Funds Flow Statement (RCOA)
o Statement of Liabilities and Assets-Monthly for Scheduled Banks (New)
o Statement of Accounts
o Statement of Advances Classified by Securities/Borrowers
o Statement of Advances Classified by Borrowers (Online)
o Statement of Basic Banking Accounts

Statements under Section 4 & 12 of the Banking Co. Rules-1963:

o Statement Showing the Names and Address of the Board of Directors
o Statement Showing Address of the Principal Office of the Bank
o Statement Showing Names Designation and Specimen Signature of Officers
Authorized to Sign the Returns Banking Companies Ordinance
o Statement Showing Names of Bank Branches in Form-VIII

Zarai Taraqiati Bank limited 22

Quarterly Report of Condition (Part-A)
o Statement of NPL (Part-B)
o Statement of Capital Adequacy Ratio (Part-C)
Quarterly Statement of Position (RCOA)
Statement of Minimum Capital Requirement (MCR-Basel-II based)

Schedule Bank Returns Namely:

o Liabilities & Assets of Scheduled Banks
o Classification of Deposits and Debits to Deposit Accounts
o Classification of Advances
o Classification of Investment in Securities and Shares
o Classification of Bills Purchased and Discounted


o Statement Showing Computation of Rate of Service Charges

o Statement of Minimum Capital Requirement (MCR) (Audited)

Following statements are being reported internally within the bank on weekly basis
o Cash position of branches
o Position of deposits
o Position of disbursement & recovery



This department is also known as Budget & Fund Management Department. In BFRD I have
learnt that how to respond for application of note received from branch or any department, and
issue the fund or budget to the branch. This department maintains budget and fund for branches
and other departments. The BFRD receives the suggestion and they transfer fund and to receive
the surplus fund form the branches. The branches send their records to BFRD. This department
monitors their record which receives from zonal offices and branches in order to fulfill the
requirements. The main purpose of budget is to plan, communicate, motivate, control and

Zarai Taraqiati Bank limited 23

The more clear, accurate and well thought out budgets in the beginning the more likely you will
be able to;

To adjust plans, activities and spending as needed

To spend money cost-effectively.
To reach the specific goals you have set.
To strength the internal control system.
To analyze, compile report and to manage funds.

Moreover, the main sources of budget are primary & secondary data, treasury & treasury data,
annual reports etc
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Preparation of financial plan for Banks credit limits, funds review and their
Financial Planning and Control for achievement of corporate goals.


Arrange adequate resources for maintenance of adequate liquidity position for

efficient Credit disbursement, and timely discharge of liabilities operations of the
Optimize return on resources of the Bank through efficient cash management and
investment activities.
Develop a budget process which clearly identifies issues, incorporates planning,
establishes accountability factors and provides follow-up reporting.
Facilitate Operations Division in setting appropriate benchmark and assessment
criteria for the Banks various areas of activities.
Generate consciousness to conserve resources commensurate with responsibility.
Effective monitoring, evaluation, analysis and reporting.


Zarai Taraqiati Bank limited 24

To developing policies, procedures and standards for budget planning and analysis.
To coordination with administrative and governance groups on the issue relating to
the budget.
This department is based on the strategic planning of the bank arranging budget
estimates from all over the bank.
To allocate of departmental code numbers with the change in the organizational set up
as per requirement.
The Automation of budget process, preservation of the data and obtaining approval
from the BOD for annual budget.
To dealing with matters relating to the appropriation and re-appropriation of capital
and revenues expenditures as well as reserves for contingencies during the year.
To prepare the information regarding performance of department-wise financial
activities and their analysis according to the data reflecting to the performance.
To monitor the expenses for ensuring financial discipline and taking remedial steps
for excess expenditures.
To develop a future strategy for projection of budget.
To preparation of quarterly evaluation and review on expenditure with budget
provisions and submission to the Audit Committee.
To arrange the training and support to the departments and divisions for the Budget
Development Cycle.
The Provision and analysis of any other information required to support institutional
planning and decision making.
To dealing with matters relating to borrowings from the SBP.
To make arrangements of adequate resources for banks requirements.
To optimize the return on financial resources of the ZTBL.
To reconcile bank accounts with the SBP & commercial banks at the ZTBL Head
To provide funds to needy branches and receive back from branches having surplus
funds with them.
To make repayment of principal installments and their interest in time in respect of
the SBP loans.
The settlement of audit objections relating to the SBP, Ministry of Finance and senior
management of the bank.
To monitor of reconciliation of the bank accounts of branches with other commercial
The fixation of cash limit of branches and monitoring of cash of branches as per
prescribed limits and regularization of audit.

The Budget Planning Unit

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This unit can develop departmental policies, procedures, budget planning process and parameters
and standards for financial management. This unit can communicate with administrative and
governance group on the budget process and budget issues.

Develop Departmental policies, procedures and standards for financial management.

Develop budget planning process and parameters.
Communicate with administrative and governance groups on the budget process and
budget issues.
Issuance of Budget calls memos.
Compilation and processing information for preparation of annual budget.
Arrange allocation of departmental code number with the change in organizational
set-up whenever required.
Automation of budget making process and data.
Finalization of budget and approval from BOD and its circulation.
Appropriation of capital and revenue expenditure for additional funds from
contingency/unforeseen reserves for new schemes introduced during the year.
Special assignment assigned by the higher authorities from time to time.
Perform administrative functions for the Department such as sanction of leaves,
approval of tour programs, approval of travel allowance etc.
The capital and revenue expenditure is also appropriate for additional funds from contingency
and unforeseen reserves for new schemes introduced. But the overall expenditure can evaluates
and reviews on quarterly basis against budget provision and its submission to the Audit
Committee. This unit not only provides information and analysis to support institutional planning
and decision making but also provide support to department and divisions throughout the BDC.
The Budget Analysis Unit

The main aim of this unit is to prepare, analyze, coordinate and assess data regarding financial
activities that reflecting the information regarding the performance of the departments. This unit
can provide information and analysis to support institutional planning and decision-making.
However, this unit can take administrative and financial steps for excess expenditure. For this
purpose this unit can communicate with administrative and governance groups.

Prepare, analyze, coordinate and assess data reflecting performance of department

wise financial activities.
Monitoring trend in expenses for ensuring financial discipline.
Take remedial administrative/financial steps for excess expenditure.
Communicate with administrative and governance groups.
Develop assumptions and strategy for the future budget cycle.
Quarterly evaluation/review of expenditure against budget provision and its
submission to Audit Committee of the Board.
Provide information and analysis to support institutional planning and decision-

Zarai Taraqiati Bank limited 26

Provide guidance and support to departments and divisions throughout the budget
development cycle.
But the overall expenditure can evaluates and reviews on quarterly basis against budget
provision and its submission to the Audit Committee. This unit also develops assumptions and
strategy for the budget for future and to monitoring trends in expenses.


The main aim of this unit is to arrange funds, to maintain records of the ZTBL and operations of
bank accounts with the SBP and commercial banks. The remittance of funds is to be done to the
needy branches on daily basis. Moreover, payment to tractor manufacturing companies the
remittance of funds is to be done to the needy branches on weekly basis.

Arrangement of funds as and when required and maintaining record relating

Operation of Bank accounts with SBP and other commercial banks.
Remittance of funds to the needy branches on daily basis.
Remittance of funds on weekly basis to the relevant branches for the payment to
tractor companies and maintenance/updating of record.
Ensure that appropriate cash balance is maintained in branches.
Preparation of periodic statement showing movement of SBP loans and position
of Government Securities.
Attend various audit and inspection reports pertaining to accounts of the Bank.
Maintenance/Monitoring of liquid cash reserves with SBP.
Accounting/record keeping of cash inward/outward.
Matters relating to Investment in securities/placement of surplus funds. (Principal
+ Return).
Coordination with SBP/commercial/internal and external auditors with reference
to the matters of Treasury Unit.
Preparations of various statements as required by ALCO. (Support function to
ALCO regarding fund management).
Coordination with Accounts Unit of CAD in finalization of quarterly, biannual
and annual accounts on issues regarding Treasury Unit.
The treasury unit can prepare periodic statement showing movement of the SBP loans and
position of government securities. The matters relating to investment in securities and placement
of surplus funds is also handle by this unit for the purpose to keep the record of cash inflows and
outflows, deposit rate declaration & fixation of cash limit. This unit not only coordinates with
accounts unit in finalization of quarterly, semiannually and annual accounts but also coordinate
with the SBP, commercial banks and internal & external auditors with reference to the matters of
treasury unit.

Zarai Taraqiati Bank limited 27

The main aim of this unit is reconcile the bank accounts that are being maintained with
commercial banks at the ZTBL Head Office. This unit follows the accounting standards of funds
such as how the amount is remitted and received from branches and other transactions relating to
the department of the ZTBL Head Office.

Reconciliation of Bank Accounts being maintained with Commercial Banks.

Accounting of funds remitted/received to/from branches and other transactions
relating to the Department.
Responding of advices issued by the branches relating to un-claimed deposits, SBP
penalties etc.
Preparation of daily cash position relating to remittance/Receipt of Funds to/from
Monitoring and reconciliation of Bank accounts of branches with other commercial
Monitoring of excess cash with branches.

This unit can monitor the excess cash and reconciliation of bank accounts in branches with other
commercial banks. However, the preparation of daily cash position relating to remittance and
receipt of funds from branches is also handling by this unit. However, the Fund Reconciliation
Unit can respond to advices issued by the branches relating to un-claimed deposits, the SBP
penalties, to match informationetc.

2. Learning experience
Practical world is different from that we studied in books. When students getting their
degrees from institutions, everyone has in his mind set goals, either he/she
wanted to start his/her personal business or wanted to get a job.

Internship is the compulsory academic requirement, and as I am student of

BBA and I selected for ZTBL bank for internship as ZTBL is a
developmental organization of Pakistan. It uses technology for high
production and development, so it was a good chance for me to get in ZTBL to enhance the
learning approach and get good experience from the organization.

2.1. 1st &2nd Week (24 June, 2014 to 8th July, 2014)

I started my internship in ZTBL on 24th June, 2014. I was introduced by supervisor to the office
members and head of office accounts department in which I was doing internship. Next day I
was briefed with details about the employee fund unit. Recordings of contributions towards
employees funds and maintenance of individuals accounts in provident funds where applicable.
Next day I was told about different funds. Which are given following:

o Employee benefit fund

o Benevolent fund(officers)
o Benevolent fund(staff)
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o Pension funds
o Gratuity fund
o Gratuity fund
o Employees provident fund
o General provident fund(officers)
o Contributory provident fund
o General provident fund(staff)

Next day I was briefed about the employees fund. The funds are managed by the trustees
through operational staff of the unit. Each activity of funds is managed in accordance with the
funds regulations and banks instructions in this regard. Fourth day I was sent in the payment
units and introduced to the units and office staff. Next day I was briefed with details about the
functions of the payment unit. The main function of the payment unit is to make the payments of
the HO expenses. Make all payments at head office and application of income tax as applicable.
Provide tax challans forms etc. In the first day of second week I was in payroll unit where I was
told about the functioning of payroll unit. Such as preparing payrolls of employees posted in HO
and their disbursement, calculation of income tax, deduction and deposit with state bank of
Pakistan. On third day I was sent to branch reconciliation unit. Next day I was told the details
about the functions of inter branches reconciliation unit and at the last day of the second week I
discussed the main points I have learnt with my supervisor.

2.2. 3rd week (9rd July 2014 to 16th July 2014)

In the first day of second week I was in fund management department in which I was doing the
internship. On the second day I was introduced by the various documents like advices and
vouchers. In ZTBL advices are used for the purpose of financial transactions, there are two types
of advices such as debit advices and credit advices. Next day I was briefed details about voucher,
for what purpose vouchers are used and how to make the vouchers. Vouchers are of three types,
debit vouchers which are of white colour, credit vouchers is of blue colour and transfer vouchers
have yellow colour.

In ZTBL head office there is no cash transaction thats why only transfer vouchers are used.
Debit and credit vouchers are used only in banks branches. Next day I was given an assignment
on excel in which they record the funds data that head office issue to the branches for tractors.
On the last day in funds management department another assignment was given to me that was to
check the total amounts of the branches and if they have amount above 3 million than they have
to remit the extra amount to head office.

2.3. 4th Week (17th July 2014 to 24th July 2014)

On the first day of 4th week I was introduced by the office members. Next day I was
introduced by the Budget Department in which I was doing the internship. Budget Department is
basically to develop a budget process which clearly identifies issues, incorporates

Zarai Taraqiati Bank limited 29

planning, establishes accountability factors and provides follow-up reporting. In the
second day of I was told by the allocation of budget. Allocation of budget is done
on two bases such as Demand based budget and Expenditure trend based budget
(with some % increase like 10%). Next day I was briefed with details about this
allocation of budget. In demand based budget allocate on the demands for this purpose budget
department check the demands of branches and HO and allocate the budget. Expenditure trend
based budget is one in which the department allocate the budget of the branches and HO same as
last year or some percentage increase in the last year budget allocation.

2.4. 5th Week (25th July 2014 to 31st July 2014)

My 5th week was in central accounts department and on first day I was given details about the
workings on the department. On the second day I was told about the pre-payment verification
and fund unit. I briefly discussed about the functions of this unit: coordinate with other
departments in the head office on policy matters, issue specimen signature numbers and update
specimen signatures booklet for use by authorized signatories in branch/HO and allocate a new
G.L heads for accounting purposes. Next day I was in tax unit, where I learned how this
department work and what are its functions.

2.5. 6th and 7th Week (1st august 2014 to 19th august 2014)

First day of 6th week I was introduced with the office members and given the introduction about
regulatory reporting department. Next day I was given brief details about the functions and
objectives of this department such as improving effectiveness in meeting in statutory reporting
obligations , prompt and accurate analysis to aid decision making and periodic financial
reporting to the management. In third and fourth day of this they gave me the trail balance and
said to make a balance sheet. During balance sheet formation I faced some problems so as I
discussed these with office member and finalized the balance sheet.

On the last day of this week I made financial analysis of balance sheets such as horizontal
analysis and vertical analysis.

2.6. How Experience impacted My Career

Besides all the working I did in Zarai Taraqiati Bank Limited, I experienced how the practical
life is different from the routine studies. I hope this practical experience will be helpful in my
studies and also do a help in my future job.

My work at ZTBL also taught me how to work with young and old employees. It also provided
me an opportunity to learn that how theoretical knowledge is converted into practical knowledge.

Zarai Taraqiati Bank limited 30

It provides the loan at cheaper interest rate as compare to the other banks.
ZTBL gets its most of the funds from different developmental institutions including
government, ADP, SBP etc. In case of facing bad debts the bank dont suffer a lot.
It has all types of agricultural machines and technology so it can easily achieve its aim
which is development in agriculture.
ZTBL has a staff college to train its employees in Islamabad, through proper training
more efficient team of employees can be made which shall be beneficial in tough banking
core competency of the bank is its MCOs because ZTBL is the only bank which has
highly experienced and properly trained MCOs who can easily disburse loan and can
achieve recovery target quickly hence risk of bad debts is reduced.
Through different computer software data is kept and maintained. ZTBL has no
competitors in the market, some banks started lending facility for business but due to lack
of efficient team of MCOs those banks have suffered.
The farmers have a trust on ZTBL.
Audit zone performing its job in a better way to rectify the errors and fraud cases.


Sometimes the lending is done on political basis. Due to the influence of political leaders
the recovery system is affected and increases bad debts.
The bank has no treasury department due to which funds are not being properly utilized
and the bank is missing a great opportunity to earn profit.
Some cases of nepotism are often seen in the bank when loans are given by the branch
managers to their relatives and fake data is maintained.
Most of the employees even senior managers are computer illiterate. They cant even
check their mails properly.
They are lacking of banking online system.


By utilising the efficient team of MCOs ZTBL can make heavy amount of deposits.
The bank is can have an opportunity to set up its treasury department in Karachi for full
utilization of the funds and for maximum profit earning.
ZTBL can reduce its expenditures by laying-off non performing employees.
its employees are highly trained for agri business development planning so it can also
operate in Middle East because Arabs are now focusing on agriculture.
ZTBL can be a leading commercial bank by slightly changing its culture. It is already
equipped with highly experienced bank officers.

Zarai Taraqiati Bank limited 31
As the economy situation is very bad and the country is facing liquidity crunch thats why
ZTBL may have to face difficulty in getting funds.
to overcome the liquidity problem the bank has started operating in the commercial
banking markets but due to inefficient commercial banking practices ZTBL may have to
face severe situation
The climate of the earth is rapidly changing due to which heavy rain falls and floods are
often anticipated. It is alarming situation for ZTBL to operate in the market being an agri-
The bank has very small profit margin because it gets funds from SBP at 6% and provide
funds to farmers at 8% only.
Agricultural crops rate is decreasing each year.

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I have been guided through this internship program, I got an opportunity to enhance my
knowledge and also earned the confidence that I can deal with the assignments. Working in
ZTBL as internee I enjoyed each and every task that was given to me. The main purpose of
ZTBL is to serve and fulfill the needs of farmers and making them strong to live their earnings
and increase productivity. It is a nonprofit Government Bank. During this internship, I really
learned Professionalism, leadership skills, communication skills, problem solving skills, situation
analysis skills and how to become a good mentor etc.

Zarai Taraqiati Bank limited 33


Interviews from employees of MPCL:

Mr. Mubasshir Umar (vice president of regulatory reporting department)
Mr. Irfan (vice president of budget and fund management department)
Mr. Aleem (officer grade-1)

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Saima hamid
Organization ZTBL Head Office Islamabad
Division Account & Finance
Proposed beginning 24th June 2014
And end 21 August 2014
An Integrated network of over 27 zonal offices and 342 branches in Pakistan.

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Total No of Branches 342

Zonal offices 27

Area offices 8

Branches in Punjab 159

Islamabad 18
Lahore 19
Sargodha 15
Faisalabad 21
Gujranwala 18
Sahiwal 15
Vehari 11
Multan 07
Muzaffargarh 11
D.G. Khan 06
Bahawalpur 12
R.Y. Khan 06

Total Branches in N.W.F.P = 62

Peshawar 20
D.I. Khan 14
Mingora 15
Abottabad 13

total Branches in Sindh = 89

Karachi 15
Hyderabad 14
Nawabshah 13
Sukkur 15
Larkana 18
Mirpur Khas 14

Total Branches in Balochistan = 32

Quetta 18
D. M. Jamali 07
Turbat 07

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Praise to Almighty ALLAH who is most merciful and beneficent. I am thankful to my Almighty
ALLAH who gave me strength and knowledge in completion of my internship and removed all
the problems I had during my internship duration and in making my internship report.

I would like to dedicate my effort for my parents who supported me at each and every step of my
entire career and who prayed for me in their each and every second, I would to dedicate them
because they are the real heroes of my life.

I would be thankful to my teachers who not only supported me; they make me a person to show
the entire would that I can do something and they build me up to face any kind of challenge for
my entire life and gave me knowledge that I applied on my internship.

I would be thankful to entire finance department who helped me out in solving all my confusions
and problems I faced during my internship time period. They gave me all information they had
about their company and I would be thankful for their cooperation.

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Energetic, dependable Student with academic experience in Bachelor of Business

Administration. Proficient in Microsoft Excel, Word, and PowerPoint and Access


Bachelors of Business Administration (currently doing) COMSATS

Institute of Information Technology, Islamabad.

Higher Secondary School Certificate & Secondary School Certificate


FBISE Islamabad, Islamabad College for Girls, F-10/2, Islamabad.

Group Humanities: Mathematics, physics, Computer Science.


Internship at ZTBL BANK 2014




Organized a seminar for disable people to teach them how to manage their
academic activities.
Organized a training session in HR

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