Project Report of BOP

The Bank of Punjab Internship Report
1
University of the Punjab
INTERNSHIP REPORT
BANK OF PUNJAB LAHORE
Submitted to:
Submitted by:
MahrukhYasin
SPECIALIZATION IN FINANCE
MBA (3 ½ YEARS PROGRAMME)BANKING AND FINANCE 2013-2017
UNIVERSITY OF PUNJAB LAHORE
CENTRAL INSTITUTE OF MANAGEMENT SCIENCES(CIMS) LAHORE

PAKISTAN
2
Table of Content:
SrNo. Content Page No.
DEDICATION 8
INTERNSHIP LETTER 9-10
SPECIAL THANKS TO STAF OF BOP 11
ACKNOWLEDGMENT 12
EXECUTIVE SUMMARY 13
CHAPTER NUMBER 1
1.1 INTRODUCTION OF BANKING SECTOR 14
1.2 HISTORY OVERVIEW 15
1.3 NATIONALIZATION OF BANKS 16
1.4 NUMBER OF EMPLOYEES 17
1.5 HEAD OFFICE 17
1.6 FUTURE OUTLOOK 19
1.7 AWARDS AND ACHIEVEMENTS 19
 EXCELLENCE AWARD BY THE FEDERAL BOARD OF
REVENUE
 3rd KISSAN TIME AWARD
 BEST CORPORATE REPORT AWARD
 16TH BOLAN EXCELLENCE AWARD
 ACHEIVEMENT AWARD
1.8 PUNJAB GOVERNMENT SHOWS FAITH IN BOP 20
1.9 MAJOR CUSTOMERS OF BOP 20
 EDUCATIONAL INSTITUTES
 AGRICULTURIST
 PAKISTAN TELECOMMUNICATION PRIVATE
LIMITED
 WAPDA
 PHARMACEUTICAL COMPANIES
 WASA
 MDA
1.10 BRANCH NETWORK 21
1.11 OBJECTIVES THE STUDYING THE ORGANIZATIONS 21
1.12 BOP TOP LEVEL MANAGEMENT 22
1.13 VISION 22
1.14 MISSION 22
1.15 CORE VALUES 23
 TRUST
 CUSTOMER FOCUS
 INNOVATION
 ACHIEVEMENT
 SOCIAL RESPONSIBILITY
1.16 BOARD OF DIRECTOR 23
25
1.17 ORGANIZATIONAL CHART OF BOP
1.18 ORGANIZATION STRUCTURE OF BOP 26
3
1.19 SOURCES OF FUND 27

 PUBLIC SOURCE
 MARKET
 CORPORATE TREASURIES AND GOVERNMENT
INSTITUTIONS
1.20 COMPETITORS 27
1.21 FUNCTION OF DIVISION 29
 ADMINISTRATION & HUMAN RESOURCE DIVISION
 HR ACTIVITIES
 OPERATION DIVISION
 BUSINESS DEVELOPMENT DIVISION
 CREDIT DEVISION
 INTERNATION DIVISION
 FINANCE DIVISION
 RECOVERY DIVISION
 AUDIT & INSPECTION DIVISION
1.22 GENERAL BANKING OF THE BANK OF PUNJAB 33
 DEPOSIT DEPARTMENT
 NATURE OF DEPOSIT
 CURRENT DEPOSIT
 SAVING DEPOSIT
 SHORT NOTICE TERM DEPOSIT
 CALL DEPOSIT
 TERM DEPOSIT RECEIPTS
1.23 RESERVE AT STATE BANK 35

CHAPTER NUMBER 2(DEPARTMENTS)
2.1 INTRODUCTION TO DEPARTMENTS 36
ACCOUNT OPENING DEPARTMENT
 ACCOUNT OPENING PROCEDURE
 THE ACCOUNT OPENING FORM
 COMPLETION OF THE FORM
 SPECIMEN SIGNATURE CARD
 ISSUANCE OF ACCOUNT NUMBER
 ISSUANCE OF CHEQUE BOOK
 ENTRY OF CHEQUE BOOK
 RECORDING IN COMPUTER
 ACCOUNT CLOSING PROCEDURE
 CAPTURE ATM CARDS
2.2 CASH DEPARTMENT 38
39
2.3 CLEARING DEPARTMENT
 OUTWARD CLEARING
 INWARD CLEARING
 SAME DAY CLEARING
 INTENSITY CLEARING
 COLLECTION(OBC)
2.4 REMITTANCE DEPARTMENT 40
 DEMAND DRAFT
4
 PAYMENT ORDER
 MAIL TRANSFER
 TELEGRAPHIC TRANSFER
 ONLINE TRANSFER
2.5 OPERATION DEPARTMENT 42
2.6 LOCKER’S DEPARTMENT 42
2.7 NIFT 42
2.8 CREDIT DEPARTMENT 43
 ADVANCES CREDIT DEPARTMENT
 PRINCIPLES WHILE ADVANCING
2.9 FORMS OF LANDING 43
2.10 RUNNING FINANCE 44
2.11 DEMAND FINANCE 44
2.12 SECURITIES FOR ADVANCES 44
 PLEDGE
 HYPOTHECATION
 GUARANTEES
 INDEMNITY
2.13 ADVANCE AGAINST STOCK EXCHANGE SECURITIES 46
2.14 ADVANCE AGAINST IMMOVABLE PROPERTY 47
2.15 BILLING DEPARTMENT 48
 OUTWARD BILLS FOR COLLECTION
 INWARD BILLS FOR COLLECTION
 OUTWARD DOCUMENTARY BILLS FOR
COLLECTION
 INWARD DOCUMENTARY BILLS FOR COLLECTION
Chapter Number 3(PRODUCT AND SERVICES) 50
3.1 ACCOUNTS 50
 CURRENT ACCOUNT
 PLS SAVING ACCOUNT
 SENIOR CITIZENS SAVING ACCOUNT
 GHARAYLOO SAVING ACCOUNT
 ZIADA MUNAFA SAVING ACCOUNT
 CORPORATE PREMIER ACCOUNT
 CORPORATE PREMIER TERM ACCOUNT
 MUNAFA HI MUNAFA
3.2 TERM DEPOSIT 52
53
3.3 FAMILY SAVING ACCOUNT
 ELIGIBILITY
53
3.4 ELECTRONIC BANKING SERVICES
3.5 ONLINE INTER BRANCH TRANSACTION PROCEDURE 53
3.6 MOBILE BANKING 54
3.7 TRANSACTION ALERTS 54
3.8 INTERNET BANKING 54
3.9 AUTOMATED TELLER MACHINE 55
3.10 VISA DEBIT CARD 55
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3.11 BOP ATM’S MASTER CARD 55

3.12 BILL PAYMENTS 56
3.13 LOCKERS 56
3.14 CORPORATE AND INVESTMENT BANKING 56
 AREAS OF CORPORATE BANKING
 AREAS OF INVESTMENT BANKING
3.15 ALLOCATION OF FUNDS 57
 LONG TERM FINANCING
 SHORT TERM FINANCING
3.16 COMMERCIAL LOAN 58
 RUNNING FINANCE
 DEMAND FINANCE
 CASH FINACE
 AUTO LEASE FINANCING SCHEME
 CAR LEASE FINANCING SCHEME
 FERTILIZERS DEALERS FINANCING SCHEME
 FINANCING SCHEME-PURCHASE OF OFFICE/SHOPS
3.17 ADVANCE AGAINST IMMOVABLE PROPERTY 59
3.18 BOP YOUTH EDUCATION ACCOUNT 60
3.19 AGRICULTURE SCHEME 61
3.20 KISSAN DOST AABIARI SCHEME 62
3.21 LIVE STOCK DEVELOPMENT SCHEME 63
3.22 KISSAN DOST GREEN HOUSE FINANCE FACILITY 64
3.23 NATURE & AMOUNT OF FACILITY 64
 MEDIUM TERM DEMAND FINANCE FACILITY FOR
METALLIC TUNNELS
 MEDIUM TERM LEASE FINANCE FACILITY
 SHORT TERM FINANCE FACILITYFOR RUNNING
EXPENSES
3.24 DISBURSEMENT 65
3.25 SECURITY 65
 MARGIN ON SECURITY
 IN CASE OF OAST BAI
 IN CASE OF THE FORCED SALE VALUE IF
EVALUATED BY PBA /BANK’S APPROVED
SURVEYOR
66
3.26 CASH FINANCE
3.27 CONSUMER FINANCE 67
 QUICK CASH
 HOUSE LOAN
 BOP CAR LOAN
 SMART CASH PERSONAL LOAN
3.28 AGRICULTURE FINANCING 67
3.29 CASH FINANCE 67
3.30 EXPORT FINANCE 68
3.31 LETTER OF CREDIT 68
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 PARTIES TO LETTER OF CREDIT

3.32 SERVICES 68
 CASH MANAGEMENT SERVICE
 UTILITY SERVICE
 LOCKER’S FACILITY
CHAPTER NUMBER 4
(STRUCTURE & FUNCTIONS OF THE
ACCOUNT/FINANCE/AUDIT DEPARTMENT)
4.1 STRUCTURE AND FUNCTIONS OF FINANCE DEPARTMENT 70
4.2 USE OF ELECTRONIC DATA IN DECISION MAKING 70
4.3 SOURCES OF FUNDS TREND 70
4.4 ALLOCATION OF FUNDS TREND 71
 LONG TERM FINANCING
 SHORT TERM FINANCING
 AGRICULTURE FINANCING
4.5 E-BANKING 72
4.6 UTILITY BILLS 72
4.7 LOCKERS 72
4.8 CONSUMER FINANCING 72
4.9 AGRICULTURE FINANCING 72
4.10 PRODUCTS OFFERED BY BANK OF PUNJAB 73
 HOUSE LOAN
 CAR LEASE LOAN
 ADVANCE SALARY PERSONAL LOAN
 APNA ROZGAR SCHEME
CHAPTER NUMBER 5(WORK DONE BY ME)
5.1 INTRODUCTION OF THE BRANCH 83
5.2 DEPARTMENT O THE BRANCH 83
5.3 LEARNING AS AN INTERNEE 83
5.4 ACCOUNT OPENING 85
5.5 CLEARING DEPARTMENT 85
5.6 RREMITTANCE DEPARTMENT 86
CHAPTER NUMBER 6(SWOT ANALYSIS)
87
6.1 SWOT ANALYSIS
 STRENGTH
 WEAKNESS
 OPPORTUNITY
 THREATS
6.2 FINANCIAL ANALYSIS 89
6.3 PEST ANALYSIS 102
CHAPTER NUMBER 7(POINTS)
7.1 WEAKNESSES OF BOP 108
7.2 RECOMMENDATIONS 109
7.3 CONCLUSION 111
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Dedication:
I want to dedicate my Report to The persons who are cause of my success, These are my Loving
and Caring Parents Who are always source of successes for me, And My thanks to them who
have generously contributed their theoretical and practical knowledge to this report include.
Without their understanding and support, completion of this work would not have possible. I
hope people will find this report useful and the subject matter adds to their knowledge.
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9
10
SPECIAL THANKS TO THE STAFF OF THE BANK OF PUNJAB

(BEDIAN ROAD BARANCH)
Without their corporation it is not possible to complete my internship.
MR. AZEEM IQBAL BRANCH MANAGER
MISS. FARAH KHALID BRANCH OPERATIONAL MANAGER
MISS. SADIA SARSHAR REMITTANCE DEPARTMENT
MISS. FARAH SAJJAD ACCOUNT OPENING OFFICER
MR. WAQAS TARIQ OGII FOREIGN CURRENCY OFFICER
MISS. SONIA BILLS COLECTION OFFICER
MR. JUNAID HAIDER CASH OFFICER
MISS. MUBASHRA CASH MANAGEMENT
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ACKNOWLEDGMENT:
Praise to be ALLAH Almighty, the most merciful and magnificent and to his Holy Prophet
Muhammad (Peace Be Upon Him) who is forever a torch of guidance and knowledge for
humanity as a whole.
I am truly satisfied here to recognize the sheer efforts and extreme of various people, those who
have given me their tireless administration in the finishing of my internship report at "Bank Of
Punjab". I might want to express my appreciation to my guides in the Bank Of Punjab who
support me to comprehend the working in the bank amid my internship .They truly helped me a
great deal to gain practical knowledge about banking.
I feel profound feeling of appreciation to Mr. Azeem Iqbal administrator of the Bank Of Punjab
(Bedian road)branch for permitting me to do my internship and furthermore giving me essential
colleague and direction. I am additionally appreciative to the departmental leaders of the bank
particularly operations related department.
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EXECUTIVE SUMMARY:
The Bank Of Punjab established in 1989 and got the status of scheduled bank in 1994.The Bank
Of Punjab offer number of products in their customers. Functionally the bank of Punjab is
divided in the division and the each division is headed by the general manager.
The government of Punjab hold the majority of shares in BOP. It is doing business in
commercial banking and the retail banking. The shares of BOP are traded in all three stock
exchange of Pakistan.
My internship program period is for 6 weeks. I worked in ACCOUNTS OPENING

DEPARTMENT,REMITANCE DEPARTMENT,CLEARING DEPARTMENT,ACCOUNTS
DEPARTMENT & BILLS FOR COLLECTION DEPARTMENT.
A president is being appointed by the provincial government. A deputy is there to assist the
president. Apart from this there are certain groups heads in the management hierarchy of the
bank. Head Islamic Banking Division, Group Head Retail Banking, Group Head Retail Banking,
Group Head Human Resources, Group Head Special Project And Legal, Group Head
Commercial Banking, Group Head Retail Finance etc.
At the end the conclusion and the recommendations are the part of the report. Bibliography is the
part, which contain all the references from I, obtain data to prepare this report.
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Chapter No 1(Banking sector)

1.1 Introduction of Banking Sector:
Banking sector owes a pivotal importance in the economy of any country through its vibrant
functions. A bank is a financial institution that offers the widest range of financial services.
These financial institutions play a vital role throughout the world’s economic system.
The banking structure of Pakistan consists of State Bank of Pakistan, Commercial Banks,
Exchange Banks, Cooperative Banks, Saving Banks and Specialized Credit Institution. “Banking
means the accepting of money from public, in shape of deposits for the purpose of lending or
investment, repayable on demand or otherwise, and withdrawal by cheques, drafts, and pay
order”.
The Pakistani banking sector mounted an overall recovery drive, increasing its asset base by
approximately 8% during the year. However, credit and business conditions are likely to remain
fragile, driven by the government's weak fiscal position and the subdued investment climate.
Furthermore, downside risks may further weigh on the banks' operating environment over the
period.
However, despite the material risks, no further major deterioration in asset quality is expected
over the coming period. NPLs are also expected to have peaked at around 16% of total lending
by year-end 2011, from 15.3% at end-June 2011. Short-term economic growth, lower interest
rates and de-risking of the banks' loan book will drive stabilization in asset-quality metrics.
Recognizing the system's structural challenges the Bank as a policy opted for and benefited from
sound funding profiles and low-cost current and savings account deposits, which increased to
67% of total deposits or 56% of total liabilities at end-June 2011. The Bank’s reliance on market
and foreign funding also remained minimal. The year 2011 remained fraught with challenges for
Pakistan, the core issues which affected Pakistan economy and were also identified in the Economic
Survey issued by the Government included persistent and high inflation, low growth, lesser in revenue
collection compared to budget figure leading to a high fiscal deficit which continues to add to the overall
debt along with a fall in the investments. All these factors, combined with the global economic slowdown
and rise in global fuel prices have further complicated the issues and economic scenario.
14
The economic development of Pakistan remained under pressure due to the deterioration of
macroeconomic factors. Industrial production and creation of new capacity was negatively
impacted by the almost continuous energy crisis throughout the year and the insistent circular
debt issue remained an area of concern. The decline in foreign direct investments because of
unsafe security situation, along with high inflation and a mounting fiscal deficit remain threats to
the macroeconomic stability of the country.
To provide relief to the people and businesses, the SBP reduced the discount rate to around 12%
per annum in line with reduction of inflation rate during the year. During the period agriculture
sector posted real growth of 1.2% and after suffering consecutive quarterly deficits, industrial
production surged to grow at a robust pace in the last quarter of the year. Remittance inflows to
Pakistan also rose by an estimated 25 % in 2011 over and above 2010 inflows and touched
almost US $ 12 billion constituting almost 4.8% of Pakistan’s GDP.
1.2 History Overview:
Bank of Punjab is a commercial bank competing in the banking sector of Pakistan successfully.
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of
scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its
network of 400 branches at all major business centers in the country.
The Bank provides all types of banking services such as Deposit in Local Currency, Client
Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and
Agriculture A wholly owned subsidiary of BOP First Punjab Modaraba(Islamic mode of
financing) was established in 1992 and is being managed by Punjab Modaraba Services (Pvt)
Ltd.
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of
scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its
network of 344 branches at all major business centers in the country. The Bank provides all types
of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency,
Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab
has indeed entered a new era of science to the nation under experience and professional hands of
its management. The Bank of Punjab plays a vital role in the national economy through
mobilization of hitherto untapped local resources, promoting savings and providing funds for
investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency
15
Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances,
Financing, Trade and Industry for working capital requirements and money market operations
are some facilities being provided by the Bank. The lending policy of Bank is not only cautious
and constructive but also based on principles of prudent lending with maximum emphasis on
security. As agriculture is considered as backbone of our economy the Bank of Punjab has
introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. A wholly owned
subsidiary of BOP, First Punjab Modaraba (FPM) was established in 1992 and is being managed
by Punjab Modaraba Services (Pvt) Ltd.
During the year BOP incurred a loss and received from Govt. of Punjab 10 Billion.
"BANK IS A PIPELINE THROUGH WHICH CURRENCY MOVES INTO AND OUT OF
CIRCULATION"
The Bank Of Punjab commenced functioning with the inauguration of its first branch of 7-
Egerton road, Lahore on November 15,1989. The progenitor of the bank MR. Nawaz Sharif
performed the inauguration.
The lending arrangement of bank is alerts and valuable as well as in view of standards of
judicious loaning with greatest accentuation on security. As agriculture is considered as
backbone of our economy the bank of Punjab has introduced "KISSAN DOST AGRICULTURE
FINANCE SCHEME" to small farmers.
1.3 NATIONALIZATION OF BANKS:
The guideline of nationalization of banks is to stream line the operation of business banks such
that it might be conductive to the development activities in process in the country. Since the
business banks were possessed controlled by enormous business gatherings of the nation it was
expected that these banks would not keep up consistency in their operational and would be
instrumental to inflationary weight. Be that as it may, the considerations behind nationalization
are
To frame consistency in the strategy of the business banks so they may serve the best national
premium. To make the operation of business banks profoundly delicate and receptive to the
approach of the administration connection to money related matters.
16
To make the credit approach of the business banks more reason full and effective particularly in
the improvement of financial divisions of the nation. It acts as an operator of the State Bank of
Pakistan
To make the best utilization of the assets accessible at the transfer of these banks for the
Economic improvement of the Nation.
To dispense with undesirable and uneconomic rivalry among business banks.
To improvement solid cash banks showcase in the nation so that the estimation of money might
be kept up at stable level both in national offices to exporter and agriculturists which have not
been tasteful in the previous years.
1.4 Number of Employees:

Currently 4000 employees are working in bank of Punjab both genders. 89% male and 11%
women
1.5 Main Offices:
Head Office and the main branch of BOP are in Gulberg 3, Lahore &Egerton, and Lahore
respectively.
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The Bank has been divided into seven regions.

 Lahore Region
 Faisalabad Region
 Gujranwala Region
 Rawalpindi Region
 Karachi/Quetta Region
 Multan Region
 Peshawar Region
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A number of online branches working under these regions which are almost 344 in all
over Pakistan
1.6 Future Outlook:
The bank has ambitious but realistic plans for the future; it intends to focus on widening and
diversifying its customer base, introduce new and innovative products/services including tailored
services to meet specific needs of the individual clients. The bank will continue to provide and
improve its technological base and introduce the state-of-the-art banking products and solutions.
It will also further improve its existing e-banking services to facilitate its customers.
After successfully handling the merger related issues the management is geared to take
advantage of its new broader branch network and create new synergies through consolidation
process. The bank is now well placed and has the requisite capacities to move forward towards
realizing its vision and achieving long term strategic growth.
The Bank is committed to observance and adoption of internationally accepted best practices of
Corporate Governance and intends to further improve its current practices of Corporate
Governance.
1.7 AWARDS AND ACHIEVEMENTS

 Excellence Award by the Central Board of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of Punjabin
recognition of the contribution made by the bank towards Government exchequer.
 3rd Kissan Time Awards
In recognition of Bank's contribution in development and growth of agriculturals

ector, the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop
Insurance" under 3rd Kissan Time Awards year 2006
.
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 Best Corporate Report Award

A n n u a l R e p o r t o f t h e B a n k f o r t h e ye a r 2 0 0 5 w o n 5 t h
p o s i t i o n f o r " T h e B e s t Corporate Report Award" for the Financial sector, adjudicated
jointly by the Instituteof Chartered Accountants of Pakistan and the Institute of Cost
and ManagementAccountants of Pakistan.
 16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence
Awardsdistributed in 2006.
 Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank
"LCCIAchievement Award" 2006
1.8 PUNJAB GOVERNMENT SHOWS FAITH IN BOP
Punjab Government wishes to state that being the major stake holder in the Bank of
Punjab it has full faith in the new management and operations of the
Bank.The government further pledges its unequivocal support to the Bank and fir
mly believes that the affairs of the Bank are sound and its financial health robust. Finance
Department Government of the Punjab
1.9 MAJOR CUSTOMERS OF BOP

Some of the Major Customers of Bank of Punjab are as under:
 Educational Institutes
 Agriculturists
 Pakistan Telecommunication Private Limited
 WAPDA
 Pharmaceutical Companies
 WASA
 MDA
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1.10 BRANCH NETWORK:
1.11 Objectives of Studying the Organization
 Major objectives to study this organization are:
1. To get awareness about the business development & financial techniques.

2. Comparison of the assets of organization with other organizations.
3. Policies followed by the organization enforced through laws of SBP.
4. Study the facilities provided by the organization to common public in various forms.
5. To study the terms & conditions for fringe benefits provided to employees of the
organization at the age of superannuation.
6. To get MBA (Masters in Business Administration) degree.
7. To apply theoretical concepts in practical aspects.
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1.12 BOP Top Level Management
 Mr. NaveedHafeezShaikh Acting General Manager HR

 Mr. Nadeem Amir General Manager Finance
 Mr. SharjealMasud General Manager Operations
 Mr. Muhammad SalimMirza General Manager Treasury
 Mr. Shaheen N. Qureshi General Manager Special Assets
 Dr. Shahid A. Zia General Manager T.R.C. & P Division
 Mr. Feisal Azmat Khan General Manager IT
 Mr. Muhammad Hanif Head Audit & Inspection
 Mr. Salman Saeed Head Credit Policy
 Mr. Moazzam M Maneka Head Agriculture Credit Department
1.2 Vision:
To be customer focused bank with service excellence.
1.3 Mission:
To exceed the expectation of our stakeholders by leveraging our relationship with the
Government of Punjab and delivering a complete range of professional solutions with a focus on
programmed driven products and services in the agriculture and middle tier markets through a
motivated team.
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1.15 COREVALUES:
Trust:
We are the trustee of public funds and serve with integrity and commitment. Ethical behavior is
of critical importance to us. We adopt full compliance with internal and external policies and
procedures, operating with the legal framework.
 Customer Focus:
We continuously seek to exceed our customer’s expectations, forging and maintaining long term
relationships.
 Innovation:
We strive to be the market leaders in innovative products and services offering customized
financial solutions with flawless execution.
 Achievement:
Our people are our most valuable asset. We inspire and challenge each other working together to
achieve synergy.
 Social Responsibility:
As responsible citizens we contribute the social welfare of the community we live in.
1.16 Board of Directors:
 Dr. Pervez Tahir

Chairman
 Mr. Naeemuddin Khan
President and CEO
 Mr. HameedYaqoob Sheikh
Director
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 Mr. Mohammad Jehanzeb Khan

Director
 Mr. Syed Muratib Ali
Director
 Mr. Saeed Anwar
Director
 Dr. Umar Saif
Director
 Mr. Omar Saeed
Director
 Mr. Mohammed AfzaalBhatti
Director
 Dr. Muhammad AmjadSaaqib
Director
 KhawajaFarooqSaeed
Director
 Mr. RazaSaeed
Secretary to the Board
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1.17Organizational Chart Of The Bank Of Punjab:
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1.18 Organizational Structure of Bank of Punjab:
HEAD OFFICE
REGIONAL
BRANCH AREA OFFICE
OFFICE
MANAGER
OPERATIOS CREDIT
DEPTT. DEPTT.
RELATIONSHIP
OPERATIONS MANAGER
MANAGER
SME
RELATIONSHIP
REMITTANCE
MANAGER
OFFICER
CONSUMER
CLEARING
OFFICER
ACOUNTS
OFFICER
CASH
DEPTT.
PAYMENT RECIEVER’S UTILITY BILLS

CASHIER CASHIER COLLECTION
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1.19 Sources of Funds:

The major sources of funds are:
 Public Source:
As the largest regional bank of Pakistan according to asset base with specialized in Agriculture
has a large deposits with 80% from the rural areas of the Punjab. The Banks major source of
funds is from the Public.
 Market:
The informal network of dealers and investors where short-term debt securities are purchased
and sold. Money market securities generally are highly liquid securities that mature in less than
one year, typically in less than ninety days.
 Corporate Treasuries and Government Institutions:
Corporate sector is one of the major sources of funds in all types of Banking. All major
organizations, financial institutions and government & private organizations are the major
sources of the funds e.g., WAPDA
1.20Competitors:
 Al-Baraka Islamic Bank Limited

 Allied Bank Limited
 Askari Commercial Bank Limited
 Atlas Bank Limited
 Bank-al-Habib Limited
 Bank Alfalah Limited
 Bank Of Khyber
 Bank Of Punjab
 Bank Islami Pakistan Limited
 Barclays PLC
 Dawood Islamic Bank Pakistan Limited
 Dubai Islamic Bank Pakistan Limited
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 Emirates Global Islamic Bank Limited

 Faysal Bank Limited
 Habib Bank Limited
 HabibMetropolatin Bank
 ArifHabib Bank
 Kashf Microfinance Bank
 JS Bank
 KASB Bank
 Mezzan Bank Limited
 My Bank (Bolan bank)
 National Bank of Pakistan
 NIB Bank Limited
 RBS (Royal Bank of Scotland)
 Samba Bank (Formally Crescent Commercial Bank Limited)
 Silk Bank Limited
 Soneri Bank Limited
 Standard Chartered Bank
 Tameer Microfinance Bank
 United Bank Limited
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1.21Functions of Divisions
 Administration & Human Resource Division:
This division deals with the problems relates to the staff administration. The main function of
this department is to arrange a comprehensive training program for recruited staff. Other functions include:
 Recruitment.
 Staff remuneration.
 Placing the staff.
 Providing and defining the opportunities for career development and growth.
 Devising and implementing services rules.
 Promotion and demotion.
 Suspension and termination.
 Transportation.
 HR Activities:
 Human Resource Department:
This Department does all the activities related to Human Resources (HR) and Personnel
Management like job Analysis, Job Design, job Description, job Redesign, job
Specification, Recruitment (is the process of finding and attracting capable applicants for
employment through Advertising, Employee referrals, Private Placement Agencies etc.),
Selection by written tests and interviews, Orientation, Training, Career Planning,
Performance Appraisal (employee performance and accountability), Compensation and
Protection, Union-Management Relations etc. It also involves in the following activities:
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 Transfers & postings

 Mandatory leave and its observance.
 Staff leaves and other related staff matters, goals of all staff
 Monthly statement of staff
 Disciplinary action cases
 Cases retired employees & its correspondence
 Complaints and its correspondence
 Operations Division:
This Division is concerned with the operational working in general banking, which is concerned
with the routine working of the bank. Any problem or ambiguity arise in any branch working are
rectified and suggested for correction by this division. This Division usually takes technical
procedures involved the decisions like commissions. And also,
 The maintenance of the existing building owned by the bank.

 Opening new branches and their maintenance.
 It also deals with the stationery problems of the bank.
 Business Development Division:
It is the other name of the marketing division. It promotes the bank cause i.e. deposits and work
for the overall development of the bank. Deposits are the lifeblood of any bank. Without deposits
bank cannot perform any function of banking. This division fixes the deposits target of every
branch by keeping an eye over the potential customers in the area. It gives motivation to
branches to achieve their targets through different campaigns and schemes like cash prizes and
special increments. It publishes a bulletin in which those branches are encouraged who achieves
their monthly targets. The main function is to develop and attract the customers and depositors. It
also manages:
 Advertising policy.
 Sales promotion.
 Schemes offered by the bank.
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 Credit Division:
This division control over all credit operations like sanction of loans, Inland Bill Purchased (IBP)
and also keeps check over securities mortgage, hypothecating or pledge. It also fixes the rate of
mark-up and other decisions concerning with the credit.
There is a credit committee, which consists of senior officers; Branches send the credit proposal
to head office credit division. Credit committee approves it after making a thorough analysis. It
also
 Prepare the policies regarding the sanctioning loan

 Monitor loans and credit
 Look after the portfolio of the bank
 Define credit limits against specified securities
 International Division:
This division is providing important services to the bank regarding the matters of International
Trade, Import, Export Letters of Credit, Travelers cheque etc.
 It develops “Correspondent Relationship” with others on commission basis and this helps
to deal with the clients having import export business.
 The Marketing and Spot Inspection cell, which were introduced by the bank, are showing
positive results in terms of achieving foreign currency deposit targets and other foreign
related business.
 The Marketing and spot Inspection cell which were introduced by Bank, are showing
positive results in terms of achieving foreign currency deposit targets and other foreign
related business.
 It handles treasury operations.
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 Finance Division:
It controls the routine financial matters. The permission of special expenditure incurred in the
branches, and other such cases. The daily position and HO Extracts are daily sent to this division
by all the branches. This division not only estimates the profit and loss of every branch but also
prepare overall income statement and balance sheet of the complete bank. It also keeps record of
total deposits of the bank and then their classification in the form of loans into different sectors
of economy.
 The basic functions are:

 Monitoring the fiscal and financial policies of the bank.
 Deals in exploring means for investing surplus bank funds.
 Maintenance and investment of Gratuity and Pension Funds of the employees.
 Recovery Division:
The recovery division, which was established in 1994 to assist in regularizing the difficult loan
accounts, has rendered valuable services in this respect. To effect recoveries in an efficient
manner, a policy has been framed in accordance with the guidelines issued by the State Bank of
Pakistan Moreover, recovery cells at regional levels have been set up to assist the head office.
This division looks after the matters of recovery of loans with the assistance of legal advisors.
 Audit & Inspection Division:
This department ensures appropriate system of checks and balances. It checks all the
irregularities, errors and forgeries if any, under the rules and regulations formed by the
Government of Punjab. For this purpose, it doesn’t only keep an eye on the branches in their
vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has
improved working at the branch level. It not only points out the discrepancies but also tries to
solve it. Surprise audit maintain a good check on the overall working of the branch especially of
the side of finance.
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1.22 General Banking of “The Bank of Punjab”
 Deposit Department:
In modern times very few business enterprises are carried out solely with the capital of the
owner. Borrowing funds from different sources has become an essential feature of today business
enterprise. But in case of an entire banking system is based on it. The borrowed capital of bank is
much greater than their own capital. Banks borrowing is mostly in the form of the deposits.
These deposits are lent out to different parties. The larger the difference between the rate at
which the deposits are borrowed and the rate at which these are lent out the greater of the profit
margin of the bank. Furthermore, the larger the deposits the larger will be the funds available for
employment, larger the funds lent out the greater will be the profit of the bank.
To receive the deposit is the basic function of all commercial banks. The bank does not receive
these deposits for safe keeping purpose only, but the accept deposits as debts. When banks
receive deposits from customer, the relationship of debtor and creditor is established where by
the customer become the creditor and the bank become the debtor. When the bank receives
amount of deposit as a debtor, it becomes the owner of it. It may use it as deems appropriate. But
there is an implicit agreement that the amount owned would be paid back to the depositor after a
specified period.
 Nature of Deposit:
 Current or Demand Deposits
 Saving Deposit
 Short Notice Term Deposits
 Call Deposits
 Fixed or Term Deposits
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 Current Deposit
Current deposits are those which are payable to bank whenever demand by the customer. Bank
does not pay any profit on current deposits. There are of different scheme of saving deposits.
Which are classified under different duration purpose and rate of interest. Fixed deposits are
those which are by the bank under the conditions that will not be payable on demand but will
be payable under fixed or determined future time date.
 Saving Deposit
This type of accounts is one step towards the Islamiczation of banking system in Pakistan.
These are two types of PLS accounts.
 PLS Saving Account

 PLS-TDR (profit & Loss Sharing Term Deposit Receipts)
PLS Saving Accounts can be opened with the minimum sum of Rs. 100 and PLS-TDR account
can be opened with the sum of Rs.1000 or above. Profit is paid on both types of the PLS
accounts on half yearly basis. Under PLS saving account the depositors undertake to share
profit or loss on the deposits earned or sustained by the bank. Secondly the bank is at the liberty
to invest the funds of the deposits in any avenue, it deems fit. The PLS deposits are invested in
non-interested channels.
 Short Notice Term Deposits
This kind of deposit is for a short period. The depositor may withdraw his deposit at any time
by giving seven days’ notice to the bank. This type of deposit facilities the depositor to
withdraw his amount with interest of the deposited period.
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 Call Deposit
Call deposits are the sorts of deposits, which are deposited with the banker against any tender.
This is without interest deposit. Sometimes it may provide interest if depositor has agreed to
keep this amount with the bank for some fixed period.
 Term Deposit Receipts
This type of deposits is same as SNTD. The difference is that SNTD is for short period of time
(7-30 days) while TDR is for long period of time (1 month up to 5 year).
1.23 Reserves at State Bank:
Deposit held by bank at SBP serves as check clearing and collection balances. Rather than
physically transferring funds between banks, check clearing and collection can be done by
simply debiting or crediting a bank’s account at SBP.
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CHAPTER NO 2 (DEPARTMENTS)
2.1 INTRODUCTION OF DEPARTMENTS

ACCOUNT OPENING DEPARTMENT
 Account Opening Procedure:

The opening of accounts may contain following procedure which are as follow,
 The Account Opening Form:
When a client comes to the bank, and makes a request for opening of an A/C. The officer first
gave him a prescribed application form.
 Completion of the Form:
The name, occupation, and complete address of the person opening the account are written in the
columns provided in the form. One signature of the person is taken on the face of the form and
one is taken on the backside. These signatures should be usual signatures and he would operate
the account with them in future.
 Specimen Signature Card:
The signatures of the client are obtained on a specimen Signature card. These cards are obtained
in duplicate with two signatures on each card from the customer. Every time a cheque is received
for a payment from the client, the signature on the cheques are verified by comparing them with
the S.S. Card.
 Issuance of Account Number:
When all the formalities are completed then the final approval of account has to be taken from
the Branch Manager. After obtaining approval of the branch manager an account number is
allotted to the customer and all the information is entered into the computer. Then that account
number is printed on the Cheque Book, S. S. cards and account opening form.
 Issuance of a Cheque Book:
After opening an A/C with the bank, the A/C holder once again makes a request in the name of
bank for the issuance of a cheques book. The A/C holder mentions title of A/C, A/C number,
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sign it properly and mentions the no of leaves he requires. Normally Bank of Punjab issues a
cheques book having at least 25 leaves. Every cheques book also contains one leaf that is used
for another issue of a cheques book.
 Entry of Cheque Book:

Before issuance of a cheques book, the employee performs certain functions. They include:
 Stamping every leaf if the account is photo account
 Enters it in the Cheque book issue register
 After entry in the manual register, and in the system the employee issues the cheque book
to the A/C holder after his/her signature on the register.
 Recording in Computer:
After opening of account, all information regarding the account is entered into the computer.
Currently, a program named hplus is being used for this purpose. Record of all the transactions
regarding the account of a customer is kept updated in the computer.
 Account Closing Procedure:
The client who wishes to close an account first has to give an application, duly signed on the pre-
printed application of the bank. The client has to attach this application with the liability form.
The client can also give an application on a plain paper, but correct signatures are very
necessary. Then it has to be made sure that if the account to be closed is a saving or Foreign
Currency Account then the account balance before closing should be zero. In case of these types
of accounts the bank does not take any closing charges. If a client wishes to close a current
account then the bank charges Rs.150, so at the time of closing the balance should be Rs.150.
Along with the application to close the account client’s Cheque book is also received from him
and then it is destroyed in order to prevent any misuse in the future. A liability form is filled and
sent to the Trade Finance Department and Credit Department in order to check that the customer
does not owe the bank a single penny in any regard. A debit voucher and a credit voucher are
also attached to the liability form.
When both of these departments approve that the customer does not owe any money to the bank
and the form is returned to the account opening department then the original account opening
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form pasted in the ledger when the account was opened is marked ‘account closed’ along with
the date on which it is so marked. One thing has to be taken into immediate consideration that
the account number allotted to the client (who has closed his account), after closure of the
account becomes useless and is not allotted to anyone in the future.
After approval of the liability form, it is sent to either the Foreign Currency Accounts
Departments or the Cash Department, as the case may be so that the officer who scanned it in the
first place could return the specimen signature card to the account-opening department.
Once the S. S. Card is received back from the concerned official then the liability form, the
client’s application along with the specimen signature card is pasted in the ledger right alongside
the original account opening form. The form has to be pasted with the original account opening
form even if the account was opened a decade ago. In the computer as well all the entries and
records related to that particular account are permanently deleted by using the ‘close account’
option.
 Captured ATM Cards:
ATM cards when captured in ATM of Bank of Punjab are returned to the concerned customer on
verification. In both cases, either the customer belongs to Bank of Punjab or any other bank,
CNIC copy is demanded from customer for bank record, CSO fills the ATM captured card form
and customer signs that form in presence of CSO. For the record purpose, ATM cards’ copy is
also kept with bank.
2.2 Cash Department:
Cash department is back bone of any bank or branch because banking is the name of dealing of
cash money instruments etc.
Some important responsibilities of cash department are:
 Cheaques received.
 Cash received.
 Cash paid.
 Cheaques transfer.
 Maintain the book of cash.
 Cash send to main branch.
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2.3 Clearing Department:

One of the basic economic functions of banks is to receive deposits and to honor cheques drawn
upon them. So, cheques are a most commonly used instrument for making payments by account
holders.
Now the question arises that how these cheques& other negotiable instruments drawn on one
bank are deposited in other banks and money is transferred from one bank to another. Clearing
House has provided this facility. Clearing house facilitates different banks to get their cheques
drawn upon other banks to be cleared.
Cheques lodged in clearing constitute two types of clearing
 Outward Clearing
 Inward Clearing
 Same day Clearing
 Intercity Clearing
 Collection (OBC)
 Outward Clearing:
In the Outward Clearing cheques of other banks are presented in our bank delivered to other
banks for clearing through NIFT.
 Inward Clearing:
In the Inward Clearing cheques of our bank is presented in other banks delivered to our bank for
clearing through NIFT.
 Same Day Clearing:

In the Same Day Clearing cheque is moved from one branch to another branch with in the city.
There are no charges apply on this service.
 Intercity Clearing:
In intercity clearing cheques of other cities are presented for clearing.
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 Collection (OBC):
When cheques and other negotiable instruments drawn upon other banks outside the city are
presented in Bank of Punjab, to deposit in payee’s accounts, then instead of clearing, these
instruments are lodged in collection and constitute “Outward Bills for Collection” OBC.
Cheques of cities, where Bank of Punjab branch exists (e.g. Islamabad, Faisalabad etc.) are sent
to that branch where these cheques are lodged in is outward clearing.
2.4 Remittance Department:

Remittance department transfers funds from one branch of bank to another branch of same bank.
This is an important service which bank provides to its customers.
Types of Remittances:
 Demand Draft
 Payment Order
 Mail Transfer
 Telegraphic Transfer
 Online Transfer
 Demand Draft (DD):

Bank Draft is an order to pay money drawn by one office of a bank upon another office of same
bank outside the city for sum of money payable to order on demand. In The Bank of Punjab, DD
is used to transfer of funds from one branch of bank to another branch of same bank.
 PROCEDURE:
1) A draft voucher is filled which contains the following information

 Name of the parties involved
 Date
 Amount to be sent
 Account number (if DD is crossed)
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2)A credit voucher is filled in order to get the excise duty and exchange commission.
3)The sender deposits the total amount of the two vouchers i.e. the debit and credit vouchers.
4)Then the cashier sends the cash receipt voucher to the accounts department and the account
records the amount paid in his cash scroll.
5)Accountant gives the DD leaf along with the DD voucher to his assistant who records the
sender’s name, amount and receiver’s name. After writing all the information in the DD register
he gives it to the officer along with the DD for authentication
6)After authentication the DD is handed over to the sender and bank sends the advice to the concerned
branch. So when the party presents the DD in the concerned branch its payment could be made.
 PARTIES INVOLVED:
The following parties are involved in demand draft;

1)Purchaser or Sender The purchaser is the person who sends the money to a particular person
payable at a certain branch.
2)Issuing or Drawing Branch The branch from where the demand draft is issued to
another branch of the same bank.
3)Drawer Branch in which the draft has drawn and called upon to pay the amount.
4)Payee The person who is entitled to receive the amount after presenting the demand draftin the
drawer branch
 Payment Order:
Payment Order is an order instrument payable to a certain person which is issued by a branch
and drawn on a same branch. In payment order, the drawer and drawee is one and the same
branch. In short, payment order is used to transfer of funds in same city from one office of bank
to another office of same bank.
 PROCEDURE
The procedure of a pay order varies with the nature of the purpose. If the work is of huge
amount then first the manager writes a letter to the Zonal Chief in order to get sanction of
the work. Then the advertisement of the work is given in the newspaper in order to invite
the contractors. But if the work is small the branch manager has discretionary power to
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select the party whose rate is lowest. After finishing the work the contractor submits the
bill of work on his stamp pad. Then the bank issues a pay order, against the pay order the
contactor gets the amount from the issuing branch.
 Mail Transfer:
Under such method, transfer of funds is made through mail. Under such transfer, one office of
bank sends advice to another office of same bank for payment. Such advice is called IBCA
(INTER BRANCH CREDIT ADVICE).
 Telegraphic Transfer:
It deals with transfer of funds by telephone.
 Online Transfer:
It is modern technique for transfer of funds. The modern concept of only banking has given it a
new dimension through which money is transferred from one place to another within no time,
even one country to another country; it takes hardly a few minutes.
2.5 Operation Department:
Operations department manages all departments of bank except credit department. Operations
Manager is responsible for all operations of cash department, remittance department and clearing
department. Opening of new accounts, closing of zero balance accounts, updating all operational
records etc. is done in operations department.
2.6 Locker’s Department
It deals to safe the proceedings of customers. Locker is also called Safe Deposit Vault. Currently
BOP is providing Extra Insurance cover to customers. Customer is fully responsible for his/her
locker’s proceeds. Bank is only custodian for these proceedings.
2.7 NIFT:
NIFT stand for National Institutional Facilitation Technologies. Clearing house of SBP has
shifted a part of its work to private institution names NIFT. NIFT collets cheques, demand draft,
pay order, travelers cheques etc. from all branches of different banks within city through its
carriers and send them to the branches on which these are drawn for clearing. NIFT prepare a
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sheet for each branch and send it to each branch as well as to State Bank of Pakistan where
accounts of Banks are settled
2.8 Credit Department:
 Advances/Credit Department:
It is the loan function, which produces the major person of bank’s income, and as such it is the
major arrears of professional banker’s concern and attention.
 Principles While Advancing
Basically there are five principles that must be duly observed while advancing money to
borrowers.
• Safety
• Liquidity
• Remuneration
• Suitability
• Disposal
2.9 Forms of Lending

Many there are two types of advances:
 Short-term (maturity within one year)
 Long term (maturity with the period of more than one year)
However, they are further classified as:
 Running Finance
 Demand Finance
 Cash Finance
 Letter of Guarantee
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2.10 Running Finance

This form of finance was previously known as “overdraft”. When a customer requires the
temporary accommodation, his bank allows withdrawal his account in excess of credit balance,
which the customer has in its account, a running finance occurs. The accommodation is thus
allowed collateral security. When it is against collateral securities, it is called a “Secured
Running Finance” and when the customer cannot offer any collateral security except his personal
security, accommodation is called a “Clean Running Finance”. The customer is in advantageous
position in running finance because he has to pay the mark-up only the balance outstanding
against him on daily product basis.
2.11 Demand Finance
This is common form of financing to commercial and industrial concerns and is mad available
either against pledge or hypothecation of goods produce or merchandise. In Demand Finance the
party is financed up to a certain limit either at once or as and when required. The party due to
facility of paying mark-up only on the amount it actually utilizes prefers this form of financing:
 Ordinary Shares
 Preferred Shares It can be
 Quoted or Unquoted
 Registered
 Bearer
 Inscribed
2.12 Securities for Advances

 Pledge
 Hypothecation
 Guarantee
 Indemnity
 Charges
 Advances against “Stock Exchange Securities
 Advances against immovable property “Mortgage”
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 Pledge
“The Bailment of goods as security for the payment of the debt and the performance of a promise
is called Pledge”
Pledge is the characteristic mode of taking goods as the security and the pledge occurs when the
goods or document of the title thereto or the securities are delivered by the customer to his
banker to be held as security for the repayment of the advance. In a pledge, the ownership
remains with the pledger but the pledgee has the exclusive possession of the property until the
advances in repaid in full, while in case of default the pledgee has the power of safe after giving
due notice. People with the safe custody of goods, when entrusted with the goods for the specific
purpose may not make the valid pledge.
 Hypothecation
“A legal transaction whereby goods may be made available as the security for a debt without
transferring either the property or the possession to the ledger”. When the property in goods is in
charged as the security for a loan from the bank but the ownership and the possession is left with
the borrower, the goods are said to be Hypothecated. The essence of the Hypothecation is that
neither the property in the goods nor the possession of them passes to the lender, but the security
is guaranteed by means of Letter of Hypothecation, which usually provides for a banker’s charge
of the Hypothecated goods.
 Guarantees
“A contract to perform the promise, or discharge the liability of the third person in case of his
default”. This is so when an application for the advances cannot offer any tangible security, the
banker may rely on the personal guarantees to protect himself against loss and advances or
overdraft to the applicant. Therefore, a guarantee may be either written or oral. The guarantee is
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a promise by one person called the guarantor or security to another for answering the present or
future debt if a second person called the “Principal Debtor”.
 Indemnity
“A contract by which one party promise to save the other from loss caused to him by the conduct
of the promisor himself or by any other person is called the contract of Indemnity” Thus in an
indemnity, the promisor is the only person who becomes liable to the promise if the latter suffers
a loss on account of his doing something at the express desire of the former.
Charges “When immovable property of one person is by act of parties, or operation of law, made
security for payment of money to another, and the transaction does not amount to mortgage, the
latter person is said to have the charge on the property, and all the provisions herein before
contained which apply to a simple mortgage shall, so far as may be apply to such charge” This
means that a charge is a right of payment out of certain property. The charge can be created by
the act of parties or by the operation of the law and although the property is made a security the
payment of loan, is still not he mortgage.
2.13Advance Against Stock Exchange Securities
Stock Exchange Securities is the vast term which covers all gilt edged securities such as:
 Federal and Provincial Government Bonds
 Post trust or Municipal Bonds • Shares and Debentures Banker, as security for advances
to the customer, frequently accepts these securities.
Advances can be against:

 Preference Shares
 Ordinary Shares
 Preferred Shares It can be
 Quoted or Unquoted
 Registered
 Bearer
 Inscribed
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2.14 Advance Against Immovable Property

A mortgage is the transfer of and interest in specific immovable property for the purpose of
securing the payment of the money, advanced or to be advanced. By way of loan, and existing
debts or the performances of the engagement this may rise the pecuniary liability.
The transfer is called the ‘Mortgage’ and the transferee the ‘Mortgagee’ the principal money and
interest of which payment is secured for the time being and instrument by which the transfer is
effected, is called the letter of the mortgage deed. Availability of adequate flows of credit for
industry and agriculture are a sin qua non for the growth and development of an economy. This
acquires the added importance when agriculture is the mainstay of the economy as also the sector
where the bulk of the poor are concentrated. Growth and productivity in Pakistan’s agriculture
has slowed down in recent years and is, therefore, of serious concern given its importance for the
economic prosperity of the country. Apart from various other weaknesses in the infrastructural
support of the agricultural sector, inadequacy and lack of efficacy of credit, flows to support
agriculture related activities has been a major constraining factor. Agriculture is the largest sector
of the economy.it contribute 25% to GDP, provides raw material to 80% of industry and
employment to over 50 percent of the population. This is a sector that has the shortage gestation
period for investments and therefore a remarkable capacity to bring about a turnaround in the
economy. This important sector in Pakistan is suffering from number of maladies and is
consequently witnessing stagnation in productivity. Due to policy and administrative exigencies,
the savings in the agriculture sector remain low and therefore the sector has perpetually remained
capital starved. The pricing of input and output in agriculture over the years has forced the
majority of farmers in Pakistan to plough back their incomes into agriculture and non-industrial
credit, and has more often than not served to sap their potential earnings. Needless to say, that
shortage of saving and lack of availability of capital is one of the major reasons for poverty in the
country. The agriculture and rural sector in Pakistan in general and in Punjab in particular are,
therefore suffering from severe under-development. Under a desirable development model,
Punjab can:
 Increase agricultural production to meet the country’s requirement of essential foods
items and industrial raw materials.
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 Develop agro-based industry in the rural sector for economic value edition.
 Generate additional employments opportunities in rural as well as adjacent small cities.
 Control; massive migration to the urban centers that in turn is causing a number of social,
administrative (i.e. law and order) and economic problems for the urban areas.
 Elevate poverty and improve the income generating capacity of the agri-based
population.
2.15 BILLING DEPARTMENT:

Billing department is very casual and important department in any bank or branch because this
department helps to fulfill their responsibility i.e.; pay the utility bills. In this branch one person
is receiving all utility bills from cash customers and keeping the amount with himself up till the
accounts are balanced at end of the day. The person who is responsible for billing department
also keeping the report in computerized sheet and then these all sheets of utility bills are sent to
the head office branch of the city. These sheets are received by branch on next day for bank
record.
The four main heads of bill department are:
 Outward Bill for Collection (OBC)
 Inward Bills for Collection (IBC)
 Outward Documentary Bills for Collection (ODBFC)
 Inward Documentary Bills for Collection (IDBFC)
 Outward Bills for Collection

Bills department receive cheque or other of bills from its kinks client whose account
must be opened in that branch. The branch forwards the check schedule or covering letter
to that branch on which bill is drawn. The checking officer of bills department will cross
the cheque with special bank stamp before forwarding the cheque. OBC register is also
maintained for proper record keeping of outward bills. This register is updated two time
once at the time of receiving bill from clients and the other when the confirmation advice
of this cheque is received from the payable branch. Bank gets a commission Rs.25/- and
courier charges Rs.40/- on the service.
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 Inward Bills for Collection
The braches which receive bill have to verify these bills for payment. The party account must be
opened in that branch. The responsibility of this branch is to verify the bills for collection within
three days and send the advice to the originating branch. In case of verification of bills is
approved, banks debit the account of the respective account holder and send a debit advice to the
originating branch and at the same time credit the head office account for inward bills IBC
register is maintaining for keeping the proper record of the bills.
 Outward Documentary Bills for Collection
Originating branch receives the documentary bills from their clients and sent them to out
station branches of the same bank or other bank. Customer account must be opened in that
branch. The documentary bills are i.e. trust receipt, railway receipt, sales invoice, receipts of
courier service etc. bank gets as commission 0.35% plus postage charges plus courier service
charges of this service. Seller and producer both can avail the facility of bank in case of selling
and purchasing their product or goods.
 Inward Documentary Bills for Collection
Bank receives the documentary bills from the other outstation branches of the same. Banks or
other banks for collection the amount form purchaser. In this case back acts as a buyer’s bank,
when bank receives the documentary bills they send intimation to buyer about his arrival of
goods. If the buyer is the account holder, then bank will debit his account otherwise purchaser
deposits the amount of the bills. Bank hand over these documents to purchase, on behalf of
which buyer receives the goods. Bank also charges commission.
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CHAPTER NO 3 (PRODUCT AND SERVICES)

3.1 ACCOUNTS
 Current Account:
Bank of Punjab Current Account is a convenient and secure way of holding your money in local
and foreign currencies.
The key features of this account are as follows:
 Non-interest bearing
 Starter cheque book issued when the account is opened
 Unlimited free-of-cost transaction facility
 No deduction of Zakat
 Choice of periodic statements (monthly, quarterly, half-yearly and annual) by post
 Account transaction information through SMS
 Free issuance of VISA debit card
 Cash withdrawal through large ATM network
 PLS Saving Account:

Bank of Punjab Savings Account is the most convenient way to manage your savings in local
and foreign currencies. Our Savings Account has been designed to provide you with easy access
to your money, as well as a higher rate of profit.
Key features of these accounts are as follows.
 Starter cheque book is issued when the account is opened
 No penalty on minimum balance not being maintained
 Choice of periodic statements (on monthly, quarterly, half-yearly and annual basis) by
post.
 Access to your account statement anytime through our Internet Banking and e-Statement
facilities Account transaction information through SMS
 Free issuance of a VISA debit card
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 Senior Citizens Saving Account:

This is a saving bank product available for all senior citizens i.e. persons of 60 years and above
who are eligible to open a saving account as per our Bank’s criteria. The account can be opened
singly or preferably jointly (husband & wife) provided either of them is of 60 years or above.
The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case
average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be
levied as per Bank’s Schedule of Charges.
 Gharayloo Saving Account
This is a saving bank product available for all females who are eligible to open a saving account
as per our Bank’s criteria. The account can be opened singly or jointly with husband. This
product is designed to attract procure deposit/savings of ladies particularly housewives of
expatriates & students
 The Main Features are:
A customer can open only one BOP Gharayloo Saving Account singly or jointly regardless of
the branch. In case it is found out that more than one account exists under this category, the Bank
reserves the right to recover & forfeit the profits paid or not to give any profit.
The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case
average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be
levied as per Bank’s Schedule of Charges
 ZiadaMunafa Saving Account:
This is a saving bank product available for general public i.e. persons who are eligible to open a
saving account as per our Bank’s criteria. The account can be opened singly or jointly. This
product is designed to attract procure deposit/savings of general public particularly salaried and
small investors. A customer can open only one BOP ZiadaMunafa Saving Account singly or
jointly regardless of the branch. The account can be opened with a minimum initial deposit of
Rs.10, 000/-. However in case average deposit during the month falls below Rs.10, 000/-,
account maintaining charges shall be levied as per Bank’s Schedule of Charges.
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 Corporate Premier Account:
 This account has been introduced for corporate clients.

 This is an operating/checquing account
 Profit on the account will be calculated on daily product basis by determining the slab on
the basis of average balance maintained in the account.
 The deduction of Zakat and Withholding tax will be applicable as per law of the land
 Profit payable on monthly basis
 Corporate Premier Term Account:
 This account has been introduced for corporate clients.

 This is non operating/checquing account
 Minimum amount of investment is Rs.500 (M).
 The deduction of Zakat and Withholding tax will be applicable as per law of the land.
 Profit payable at maturity
 Munafa Hi Munafa:
This is a term deposit product. The term is from 1 month to 5 years and the profit is paid on
monthly basis. The minimum amount of deposit is Rs.100, 000/-. The rate of profit is from 8.0 %
p.a. to 12 % p.a. depending on the tenure which is higher than Bank’s normal term deposits.
3.2 Term Deposit:

Term Deposits are offered by Bank of Punjab to the following types of customers:
 Individuals (single or joint)
 Minors (to be operated by the guardian)
 Charitable institutions
 Local bodies
 Autonomous corporations
 Limited companies
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3.3 Family Saving Account:

Fostering the bond that exists with its customers, and to better serve their financial needs, Bank
of Punjab has come up with ‘Family Savings Account’ – a unique savings account offering
superior returns and a host of free services.
 Eligibility:
The customer ID of the primary account holder will be the family ID. The Primary account
holder CANNOT be a minor. Minimum 2 and maximum 5 members can be grouped under a
single Family Savings Account.
3.4 Electronic Banking Services:

Bank of Punjab is one of the leading banks in Pakistan in terms of electronic banking. We offer
our customers a diverse range of electronic services and convenient banking options through
various channels, such as ATMs, mobile phones and Internet.
Our Mobile Banking allows customers to avail a variety of banking services of pure SMS-based
technology, including mobile balance recharge and utility bill payments, as well as account
information.
3.5 Online Inter Branch Transaction Procedure:

Online inter branch transaction is a facility whereby customers maintaining accounts in Online
branches would be able to operate their accounts from any of the online branches across the
country.
The online service is being called IBR-Inter Branch transaction. Specifically, an online branch
will offer the following transactions to account holders of other online branches:
 Balance enquiry.
 Cash deposit/withdrawal
 Transfer of fund.
In addition, online branches will also be able to issue ATM Cards to their own account holders.
A special option has been made available in the computer system in Online Branches to accept
transactions meant for another Online Branch. The online transactions will only be accepted
during fixed hours; presently the cutoff time is 1530 hours on weekdays and 1300 hours on
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Saturdays. A complete audit trial of all transactions posted remotely would be available both at
the Destination Branch and the Originating Branch. The Originating Branches must tick all the
online transactions with the voucher /documents, as being done for local transactions.
3.6 Mobile Banking:

In keeping up with rapidly changing technology, Bank of Punjab offers you banking through
your mobile. You can easily keep track of all your account transactions through your mobile
phone, and retrieve account information whenever you want, just by typing and sending a simple
SMS.
3.7 Transaction Alerts:
Now wherever you go, your bank goes with you. Bank of Punjab gives you the following free
transaction alerts on your mobile:
 Day End Balance
 All Transactions (Debit & Credit)
You can also check your transactions and account balance. Customers who are already
subscribed for SMS alerts are automatically eligible for this service
3.8 Internet Banking:
Bank of Punjab offers a secure, fast and convenient Internet Banking channel with a range of
services. It will change the way you bank today.
Internet Banking ensures that you have convenient access to your account and banking services,
no matter where you are.
Services offered through Internet Banking
 Bill Payments
 Credit Card Bill Payments
 Funds Transfer within Bank of Punjab
 Inter Bank Fund Transfer
 View ATM Card Transaction Details
 Activate/Deactivate ATM Cards
 View Consumer Loan Details
 Register and Track Complaints
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3.9 Automated Teller Machine (ATM):

Through the ATM’s Customers have access to the various services such as withdrawal, balance
enquiry and mini statement? Complete security is ensured because access to the account is only
possible by entering a four digit personal identification number (PIN) known only to the account
holder. Cash withdrawal limit is up to Rs.20, 000 per day. Annual charges of ATM is Rs.250/-
per card
3.10 Visa Debit Card:
Bank of Punjab Visa Debit Card welcomes you to a world of privilege and pleasure. Be it
shopping, dining or travelling, Bank of Punjab Visa Debit Card lets you do it all, with ease and
panache. With the accessibility one aspires for and the convenience one desires, Bank of Punjab
Debit Card redefines purchasing pleasure.
3.11 BOP ATM’s MasterCard

The bank of Punjab has made significant leaps in terms of technology acquisition and
infrastructure upgrade in a short span. we have setup an enterprise wide CRM, established a
24/7 Phone Banking helpdesk, Launch multiple MasterCard schemes, enabled SMS
Banking and doubled our ATM Network in short span.
MasterCard is a technology company and payments industry leader. For more than four decades,
they have been a driving force at the heart of commerce, making the global economy safer, more
efficient, more inclusive and more transparent for all.
Consumers, merchants, business partners and governments in markets around the world have
reaped the benefits of their innovative products and solutions which, simply put, are designed to
make life easier.
1LINK is providing MasterCard Certification and Connectivity to member banks to issue/acquire
MasterCard Debit Cards which can be used on the Global MasterCard Network. This will help
1LINK member banks to open their network for international card acceptance.
1LINK is MasterCard certified third party processor for Debit MasterCard cards and as a third
party processor, 1LINK provides the impetus growth to MasterCard Debit in Pakistan.
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3.12 Bill Payments:

Save your time by availing Bank of Punjab Utility Bill Payments Service. Open an account in
Bank of Punjab now to get this unique and efficient Bill Payments Service.
3.6.8 Lockers:
Commission charged on lockers provided by bank for customers, is also a source of inflow for
the bank
3.14 Corporate and Investment Banking:
Our mission is to serve all corporate requirements and ensure full satisfaction through product
innovation, personalized banking, and top notch service. Our Corporate & Investment Banking
Group focuses on attracting and serving Blue Chip Customers. Our forte is providing exemplary
customer service using the “Single Window” concept and “Product Superiority”. Our Corporate
Banking Group comprises a seasoned team of Relationship Managers (RMs) to meet the
demanding service standards of Corporations & Businesses enabling us to provide timely and
effective financial solutions for our customers to meet the growing challenges of a global
economy. Our RMs has the expertise you need to create tailored financial solutions catering to
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the specific requirements of your business. Whether it’s establishing a new venture or expanding
an existing business, our team understands the banking needs of businesses, and works closely
with them to help them realize their goals.
 Areas of Corporate Banking:

 Running Finance, Short Term & Long Term Finance, Financing against Imported
Merchandise (FIM), Cash finance and Export Re-finance
 Pre and Post Shipment Export Financing (PKR and USD based)
 Import Financing (PKR and USD Based).
 Trade Services including Letter of Credit (Sight &usance), Letter of Guarantee and
Standby Letter of Credit, etc.
 All other services with respect to the requirement of business of borrower are provided
here.
 Areas of Investment Banking:

 Project & Structured Finance
 Syndications & Debt Capital Market
 Equity & Advisory
 Bonds
3.15 Allocation of Funds:

BOP’s funds are allocated to the following departments. The banks major focus is on short term
financing. Major allocation of funds is on these divisions.
 Long Term Financing:

Long term financing includes tenure more than one year.
 Short Term Financing:

Short term financing includes period less than one year. The banks major focus is on short term
financing.
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From the above it is further sub distributed to

 SME Division
 Agriculture financing
 Consumer financing
 Corporate financing
The distributions of funds to these departments are Banks internal matter and they avoid
disclosing. Through Financial Statements it is only possible to analyze long term and short term
financing.
3.16 Commercial Loan:

The Bank of Punjab offers following Commercial Financing Loans:
 Running Finance
 Cash Finance
 Demand Finance
 Auto Lease Financing Scheme
 Car Lease Financing Scheme
 Fertilizers Dealers Financing Scheme
 Financing Scheme- Purchase of Office/Shops
 Running Finance
 Against Pledge of Shares
 Against Government Securities
 Against Hypothecation of Stocks
 Demand Finance:
Credit facilities extended against registered mortgage of property (i.e., land/buildings constructed
or to be constructed) is by nature classified as a Secured Advance. A formal charge on the
property is established and recorded with the Registrar Land and Property termed as registered
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mortgage. Advances are also made against equitable mortgage of property, whereby the original
title Deeds are deposited with the Bank as Security and the charge is registered with the Registrar
SECP.
In case the Finance is allowed to Limited Companies, where the original title documents of
Land/Building and other Fixed Assets are held by the senior charge holders, our charge (Pari-
Pasu or ranking) as approved by Credit Committee, shall be recorded with the Registrar
Securities & Exchange Commission of Pakistan (SECP). However, in case of Pari-Pasu Charge,
NOCs from the senior Charge Holders shall be obtained before registration of charge with SECP.
In case of borrower’s failure to liquidate the obligation or on classification of the advance to
“Non-Performing” the Bank has a legal recourse to apply for a decree in a court of law, to sell
off the mortgaged property through auction as ordered by the court.
3.17 ADVANCE AGAINST IMMOVABLE PROPERTY

A mortgage is the transfer of and interest in specific immovable property for the purpose of
securing the payment of the money, advanced or to be advanced. By way of loan, and existing
debts or the performances of the engagement this may rise the pecuniary liability .
The transfer is called the ‘Mortgage’ and the transferee the ‘Mortgagee’ the principal money and
interest of which payment is secured for the time being and instrument by which the transfer is
effected, is called the letter of the mortgage deed. Availability of adequate flows of credit for
industry and agriculture are a sin qua non for the growth and development of an economy. This
acquires the added importance when agriculture is the mainstay of the economy as also the sector
where the bulk of the poor are concentrated. Growth and productivity in Pakistan’s agriculture
has slowed down in recent years and is, therefore, of serious concern given its importance for the
economic prosperity of the country. Apart from various other weaknesses in the infrastructural
support of the agricultural sector, inadequacy and lack of efficacy of credit, flows to support
agriculture related activities has been a major constraining factor. Agriculture is the largest sector
of the economy.it contribute 25% to GDP, provides raw material to 80% of industry and
employment to over 50 percent of the population. This is a sector that has the shortage gestation
period for investments and therefore a remarkable capacity to bring about a turnaround in the
economy. This important sector in Pakistan is suffering from number of maladies and is
consequently witnessing stagnation in productivity. Due to policy and administrative exigencies,
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the savings in the agriculture sector remain low and therefore the sector has perpetually remained
capital starved. The pricing of input and output in agriculture over the years has forced the
majority of farmers in Pakistan to plough back their incomes into agriculture and non-industrial
credit, and has more often than not served to sap their potential earnings. Needless to say, that
shortage of saving and lack of availability of capital is one of the major reasons for poverty in the
country. The agriculture and rural sector in Pakistan in general and in Punjab in particular are,
therefore suffering from severe under-development. Under a desirable development model,
Punjab can:
 Increase agricultural production to meet the country’s requirement of essential foods
items and industrial raw materials.
 Develop agro-based industry in the rural sector for economic value edition.
 Generate additional employments opportunities in rural as well as adjacent small cities.
 Control; massive migration to the urban centers that in turn is causing a number of social,
administrative (i.e. law and order) and economic problems for the urban areas.
 Elevate poverty and improve the income generating capacity of the agri-based
population.
3.18 BOP Youth Education Account

This is a current chequing account product especially designed for young students studying in
schools, colleges and universities with additional feature of Free of Cost Education Insurance
Coverage on maintaining Minimum Monthly Average Balance of Rs.100,000/-. Salient Features:
• The product is especially designed for students attending any kind of educational institution.
• This is a Non-profit bearing account.
• Students up to age of 30 years will be allowed to open the account in this scheme. If the age of
student is below 18 years, minor/guardian account will be opened and new/normal YEA account
will be opened upon submission of CNIC of the student, as per existing procedure.
• Account can only be opened in Minor/Guardian and Student categories. Joint Accounts are not
permitted.
• There is no minimum balance limit hence account maintaining charges will not be applicable.
• Free of cost ATM/Master Debit Card (issuance & subsequent renewals).
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• Issuance of free of charges Payment Orders/ Demand Drafts favoring any Educational
Institution.
• The Student qualifying for education cover must be an account holder for at least One Calendar
Month.
• Student will be provided Insurance cover as long as he/she is less than 30 years of age or
his/her parent/guardian is in the age band of 18-60 years.
3.19 Agriculture Scheme

There are many agriculture promotion schemes provided by BOP;
 Green Tractor Lease Finance
 Agri Finance Branches
 Agricultural Finance scheme
 Kissan Dost Aabiari scheme
 Kissan Dost Tractor Scheme
 Second Hand Tractor Lease Finance Scheme
 Kissan Dost Mechanization Support Scheme
 Kissan Dost Farm Transport Scheme
 Kissan Dost Live Stock Development Scheme
 Live Stock Breed Improvement Trough
 Kissan Dost Commercial Agro Services
 Kissan Dost Agri Mall Finance Scheme
 Corporate Farming Finance Scheme
 Commercial Lease Finance Tractor Scheme
 Demand Finance-Sheds Construction and Civil Works
 Lease Finance Facility for Milch Animals
 Running Finance-Live Stock/Poultry and Fish Farms
 Kissan Dost Model Diary Farms (PDDC)
 Kissan Dost Model Milk Collection Centers (PDDC)
 Kissan Dost Green House Finance Facility
 Kissan Dost Cold Storage Finance Facility
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 Scheme For Controlled Sheds

 Lease Financing Facility for Installation of Biogas Plant
 Group Financing to Small Farmers
 Clean Credit Facility through Syngenta Franchisees
 Zarkaashat Drip Irrigation System
 Mark up Schemes
3.20 Kissan Dost Aabiari Scheme
 Purpose:
Provision of financial facility to the farmers for installation of Tube well, turbines etc.
 Eligibility:
Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres.
 Amount:
Maximum Rs 500,000/-. Equity: 20% of the cost of project will be paid by the borrower.
 Security:
1. Lease Assets i.e. Engine, Tube well and other related implements (The vendor will issue
receipt in the name of Bank).
2. Charge on Agriculture Land through Agri. Pass Book.
3. One personal guarantee of reputable person acceptable to Bank.
4. Two written satisfactory market checking reports. Margin on Collateral Security: 50%
Margin on Agri land assessed by Surveyor. 25% margin Agri land as per value in revenue
record. The maximum amount of Finance will be allowed upto 75% of the OastBai Value
of land (OastBai is verified by Revenue Officer)
 Insurance:
The Lessee will arrange comprehensive insurance of implements/assets. Life assurance of lessee
under the Bank’s charge. Mark-up: 18% Per Annum Repayment: 10 equal half yearly
installments (within five years).
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3.21 Live Stock Development Scheme
 Purpose:
Provision of financial facility for purchase of animals (Milk & meat production, cattle farming,
Poultry Farming and Fish farming) to the farmers and non farmers (those who have their own
live stock farm/fish farm for commercial purposes)
 Eligibility:
Sufficient experience to handle Dairy Farm, Cattle Farm, Goat Farm, Poultry and Fish
Farming. The persons who have their self owned Dairy Farms for production of milk on
commercial basis).The applicant should be having adequate arrangements to sell out the
products properly e.g. supply contract with milk processing company.
 Amount:
80% of cost of animals (Maximum facility can be granted up to 50% of forced sale value of
property).
 Security:
Leased Animals (receipt will be issued in the name of Bank).Charge on Agriculture Land
through Agri Pass Book OR Charge on urban immovable property through equitable/registered
mortgage. The property will be cleared by Bank's approved legal counsel and will be assessed by
Bank's and PBA's approved surveyor. Liquid security in the shape Bank's Fixed Deposited
Receipts/DSC/NSC or Regular Income Certificates.
 Margin on Security:
50% margin on landed property (Agri/Urban). 25% margin in case of liquid security.
 Insurance:
The Lessee will arrange comprehensive insurance of Animals. In case of Poultry and Fish
farming Borrower will have to arrange comprehensive insurance of poultry and fish stock
himself form Bank's approved A rated company life assurance of lessee under the Bank's charge.
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 Mark-up:
18% Per Annum
 Period:
5 Years
 Repayment:
20 equal quarterly installments (within five years).
3.22 Kissan Dost Green House Finance Facility:

At present, the agriculture business is the most rewarding avenue of the Bank of Punjab. Due to
the increasing demand of off seasoned vegetables, we are rolling out a special scheme by the
name of “GREEN HOUSE FINANCE FACILITY” for farmers who intend to establish Green
House to grow off seasoned vegetables.
 Purpose:
The purpose of this loan is to encourage the farmers to establish green houses. This will also
curtail the shortage of vegetables. Moreover the rate of vegetables will also decrease when they
are in abundance in the markets.
 Types of Green House:
There are two types of green houses i-e Metallic Construction & Bamboo Construction
 Eligibility:
The applicant should be a genuine grower and should have a suitable land to establish a Green
house. The applicant should not be a defaulter of any other Bank and the land under cultivation
should be free from any encumbrance.
3.23 Nature & Amount of Facilities:
 Medium Term Demand Finance Facility For Metallic Tunnels:
For purchase of iron/steel, cement, concrete, polythene, mulching shopper, green net For
Bamboo Tunnels: For purchase of bamboo, cement, concrete, polythene, mulching shopper,
green net
 Medium Term Lease Finance Facility:
For installation of Drip Irrigation System for both Metallic & Bamboo Tunnels:
 Short Term Finance For Running Expenses:
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Running finance facility for the purpose of purchasing seed/inputs and other running expenses
such as farm power, labor etc.
3.24 Disbursement:
In case of Medium Term Demand Finance Facility the loan will be disbursed as 30% for base
structure & for purchase of raw material, 40% for construction of green house/tunnels and rest of
30% for finishing purpose. Each tranche will be released after proper verification by Executive
Incharge Agriculture & respective ACO of the Branch. In case of Medium Term Lease Finance
Facility the payment will be made directly to the vendor after proper verification of leased asset.
In case of Short Term running Finance Facility the initial disbursement will be made as and
when required by the applicant.
 Amount:
70% of the cost of construction assessed by Bank’s approved surveyor according to the proposed
plan of construction In case of lease finance 80% of the purchase price of leased assets. In case
of Running Finance, up to 80% of total running expenses.
3.25 Security:
 Primary Leased assets in case of lease finance facility (receipt will be issued in the name
of bank). Hypothecation of vegetables, equipment etc. in case of running finances
facility.
 Collateral Charge on agriculture land through Agri. Pass book. OR
 Charge on urban immovable property through equitable/registered mortgage. the property
should be cleared by the banks approved legal counsel and will assessed by the Banks
and PBAs approved surveyor. OR
 Liquid security in the shape of Banks Fixed Deposited Receipt/DSC/NSC or Regular
Income Certificates.
 One personal guarantee of a reputable person: ACO along with Regional Chief can waive
this condition if they deem the borrower to be credit worthy.
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 Margin on Security:
 In Case of OastBai:
The maximum amount of Finance will be allowed upto 75% of the OastBai Value of land
(OastBai is verified by Revenue Officer)
 In case of the forced sale value if evaluated by PBA /bank’s approved surveyor:
Maximum Amount of Finance will Be 50% Of The Forced Sale Value, Evaluated By
PBA/Bank’s Approved Surveyor.
 Insurance:
Comprehensive Insurance of the Leased/Hypothecated stock at borrowers cost assigned to BOP.
Life assurance of the borrower under the bank’s charge assigned to BOP.
 Mark up:
For Demand Finance 18% Per Annum For Lease Finance 18% Per Annum For Running Finance
18% Per Annum Recovery of Mark up: In case of lease finance & Demand Finance the mark up
will be recovered along with the installment on quarterly basis. In case of Running Finance
Facility, the mark up will be recovered on quarterly basis.
 Validity:
Running Finance to be settled in One Year along with mark up from the date of initial
disbursement of Running Finance. Five years in case of Lease Finance Facility. Five years in
case of Demand Finance Facility.
 Repayment:
20 equal quarterly installments (Principal and Mark up) in case of Lease/Demand Finance
Facility. Running Finance to be settled once a year along with total mark up.
3.26 Cash Finance:
This facility is generally provided against pledge of goods. Under this type of financial
accommodation the facility amount is disbursed in specially opened account for the purpose. The
pledged goods are released to the borrower against cash payment only. In case the goods pledged
are seasonal in nature, the customer would be required to adjust the facility before the season
ends. Rollover shall not be allowed.
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3.27 Consumer Finance:

Personal Finance, mortgage finance, business finance, smart cash, auto financing and traveler’s
cheques are all sources of funds for the bank. The bank finances all these loans and facilities on
competitive mark up rates
 Quick Cash:
Bop quick cash is running finance facility provided to the salaried persons through their bank
accounts. Customers can with draw between Rs. 50,000 to500, 000 based on their salary. An
eligibility criterion for customers as well as customers is minimum Rs. 15000 take home salary.
 House Loan:
Salaried persons with maintaining account with bank can avail this facility with minimum take
home salary Rs.15000 per month.
 Bop Car Loan:
Govt. or private employees, business men and professionals can avail the Bop car loan facility.
They can avail loan amount from 200,000 to 50, 00000 and duration of tenure is from 1 to 5
years.
 Smart Cash Personal Loan:
Facility for bank’s target market for meeting their personal needs repayable through monthly
installments Maximum limit of loan is Rs 500,000 which is equal to 25 take home monthly
salaries. Maximum duration of tenure is 5 years.
3.28Agriculture Financing:
The bank provides adequate and timely financial assistance to the farmers to improve production
potential of agriculture sector. Insurance of leased assets, animals, crops and life assurance of
borrowers are all source of money for the bank.
3.29 Cash Finance:
Cash finance also provide against pledge of local. Bank of Punjab gives cash to the customer for
the purpose of help. Basically cash finance is providing against:
 Pledge of stock in trade or products
 Mortgage of property
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3.30 Export Finance:
Bank of Punjab also provided export finance to the eligible customer. Anyone wanted to export
of the product. SMBL gives the cash finance on pre- post shipment. The period, of finance may
be enhanced or reduced on such terms and conditions as may be advised by State Bank of
Pakistan from time to time
3.31 Letter of Credit:
Letter of credit is an instrument providing by the bank on behalf of the customer, an instrument
include commercial invoice, and other documents required as per terms of letter of credit.
 Parties to Letter of Credit:
 The applicant (opener of L/C)

 Opening bank
 Advising bank
 Beneficiary (exporter)
 Negotiating bank
3.32 Serivces:
 Cash Management Service:
Cash management is a process of collections & payments on behalf of the customers using the
Bank Network. The objective is to facilitate organizations with multiple collection points in
gathering cash/Funds and making them available in the customer operating Account. Similarly, it
facilitates disbursement of frequent and or Bulk payment to multiple locations. This should be
accomplished with minimal supervision by the customer, supported by an automated system to
provide timely and requisite MIS/ Reconciliation under agreed service levels.
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 Utility Service:
Customer can pay their utility bills e.g. electricity, water, gas, telephone, at any of around 500
branches across Pakistan. For your convenience bills are collected on all working days from 9:00
Am to 5:00 Pm (Monday to Friday) except lunch and prayer break. And from 9:00 Am to 1:30
Pm on Saturday. You can also pay your bill by availing drop box facility. Just drop your cheque
along with the bill at your branch and collect the receipt in the evening, avoid the hustle of
standing in queues and save your precious time.
 Locker’s Facility:
Discover peace of mind, enjoy personalized service and operate your locker in a friendly and
pleasant environment at The Bank of Punjab .
Locker size Annual Fee
Small Rs.4000
Medium Rs.4500
Large Rs.6000
Extra Large Rs.7000
These are the other services provided by the BOP.
 ATM Facility
 On-line Banking
 Lockers Facility
 Demand draft
 Letter of credit
 Pay order
 Mail Transfer
 Debit card
 Collection of utility
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CHAPTER NUMBER 4
(Structure & Functions of the Accounts/
Finance/ Audit Department)
4.1Structure and functions of Finance Department
The management of BOP comprises of two types i.e. Chairman’s Secretariat & President
Secretariat. Chairman’s secretariat deals with finance division. MrNadeem Amir is general
manager of finance division of mentioned secretariat. The financial analyst related to BOP
matters of chairman’s secretariat is Mr. Masroor Zaigham. The manager of finance division is
Mr. Muhammad Ijaz Aziz. Mr. Muhammad Arshad is the head of finance division of BOP. The
finance department deals in authenticity of cheques, proper utilization of funds, preparation of
day end statements, online banking, collection of mails, opening & closing account
of customers& companies etc.
4.2 Use of electronic data in decision making

Electronic data gives exact values and figures which top level management
required. Because of electronic data they came across to know those minute things
which impacts a lot on final place. Through this they can measure exact profit and loss
accounts, assets and liabilities up to a branch level from where they can decide which should be
kept and which should not.Through this top level management is able to decide which product
should be taken into course for further level or which should stop .Electronic data make
management able to take decision at any point of time.
4.3Sources of Funds trend

The major sources of funds are:
 Public Source As the largest regional bank of Pakistan according to asset base with
specialized in Agriculture has a large deposits with 80% from the rural areas of
the Punjab. The Banks major source of funds is from the Public.
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 Money Market Figurative expression for the informal network of dealers and
investors over which short-term debt securities are purchased and sold. Money
market securities generally are highly liquid securities that mature in less than one year,
typically in less than ninety days.
 Corporate treasuries and Government Institutions Corporate sector is one of the major
sources of funds in all types of Banking. All major organizations, financial institutions
and government & private organizations are the major sources of the funds e.g., WAPDA.
4.4Allocation of Funds trend

BOP’s funds are allocated to the following departments. The banks major focus is
on short term financing. Major allocation of funds are on these divisions.
 Long Term Financing
Long term financing includes a tenure more than one year.
 Short Term Financing

Short term financing includes period less than one year. The banks major focus is
on short term financing. From the above it is further sub distributed to
1. SME Division
2. Agriculture financing
3. Consumer financing
4. Corporate financing
The distribution of funds to these departments are Banks internal matter and they avoid to
disclose. Through Financial Statements it is only possible to analyze long term and short term
financing.
 Agriculture financing
The bank provides adequate and timely financial assistance to the farmers to improve
production potential of agriculture sector. Insurance of leased assets, animals, crops and life assurance
of borrowers are all source of money for the bank.
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4.5 E-Banking:
The bank has a centralized database that is web-enabled. All the services that the bank has permitted on
the internet are displayed in menu. Any service can be selected and further interaction is dictated by the
nature of service.
4.6 Utility bills:

The bank also makes possible the payment of electricity, gas and telephone bills for its customers
charging some commission on each payment.
4.7 Lockers:
Commission charged on lockers provided by bank for customers, is also a source of inflow for
the bank.
4.8 Consumer financing:

Personal Finance, mortgage finance, business finance, smart cash, auto financing
and traveler cheques are all sources of funds for the bank. The bank finances all these loans
and facilities on competitive mark up rates.
4.9 Agriculture financing:

The bank provides adequate and timely financial assistance to the farmers to
improve production potential of agriculture sector. Insurance of leased assets, animals, crops
and life assurance of borrowers are all source of money for the bank.
 Products/Services:
Due to trend setting and innovative banking, Punjab Bank presents a range of quality products
with revolutionary perks and convenience. BOP provides a wide range of products/services to its
customers, which can be compared with any foreign, or national bank in terms of quality and
reliability. Here is an overview of different products and services formulated by Punjab Bank
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4.10 Products Offered by Bank of Punjab:
 House Loan
 ApnaGhar House Financing:
Our Home is the center of our world. A place where we find peace. We understand your desire to
make your house truly your home. Our House Financing Product ensures this happens
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Scheme:
 ApnaGhar House Finance scheme is a long term finance facility for
 Purchase of House/Flat
 Construction of house on self-owned plot
 Purchase of plot & construction thereon
 Renovation/Home improvement Eligible Person’s:
 Salaried individuals (SI)
 Self Employed Professionals (SEP)
 Self Employed Businessman (SEB)
 Non Resident Pakistanis (NRPs) and quality eligibility criteria Salaried Individual (SI):
 Age between 21 & 60 years
 Permanent / contractual employee with minimum 03 years’ experience Businessman &
Professionals (SEP/SEB):
 Age between 25 & 65 years
 Minimum 03 Years in current business. Non Resident Pakistanis:
 Age between 25 & 65 years have valid documentary proof of at lease 03 years of
perpetual income in foreign country as salaried individual or SEB/ SEP. Finance Limits:
Purchase of House/Flat & Construction
 Minimum Rs.500,000/- Maximum Rs.50.0 Million for Construction of house on self
owned plot
 Minimum Rs.500,000/- Maximum Rs.25.0 Million for Renovation/Home Improvement
Monthly
 Minimum Rs. 500,000/- Maximum Rs. 5.0 Million for
 Monthly Installment(s) should not exceed 50% of disposable income.
 Tenure of Loan:
3 to 20 years (for Purchase of House & construction on self-owned plot & purchase of plot &
construction thereon)
1 to 10 years (Renovation/home improvement)
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 Markup Rate:
1 Year ask side KIBOR 350 bps (For Salaried Individual) 1 Year ask side KIBOR 450 bps (For
SEB/SEP/NRPs) The rate is fixed for 01 year and revised annually due to change in KIBOR.
 Processing Charges:
(including ECIB & verification charges)
Loan amount Upto Rs.10.0 M = Rs. 10,000/- Loan amount Above Rs.10.0 M = Rs. 20,000/-
Documentation Charges = Actual Property Insurance and Life Assurance = At actual Property
Valuation Charges, Legal Charges, foreclosure charges. All stamp duties, CVT, documentation
charges, levies etc. = At actual Late Payment Penalties = Rs 1/- per thousand per day of
installment amount Pre-payment / pre-partial payment Penalty
• 5% if adjusted during First three year
• 4% if adjusted in 4th year
• 2% if adjusted in 5th year
• 1% if adjusted after 5th year
Required Documents For salaried & Businessman & Self Employed Professionals:
 Copy of valid CNIC
 Two Recent passport size Photographs
 Bank Statement ( last 06 month for salaried persons and 01 year for SEP / SEB/
NRPs)
 Latest Copy of utility bills of residence & office
 Documentary evidence in business or in the profession for the last 03 years
 Copy of professional degree for self-employed professionals
 Copy Proprietorship Certificate/Partnership Deed or Form 29 (if customer is a
businessman / director of the company) For Non Resident Pakistanis:
 Copy of valid passport at time of approval
 Copy of valid residency / work permit VISA

 Bank statement of last 01 year in foreign country showing income source
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 Documentary proof of employment / business / profession from last 03 years in

foreign country of residence
 Any documentary evidence of living address/stay in Pakistan.
 Car Lease-Car Gar:

CARGAR Scheme assists you in leasing car on easy repayment terms. It has minimum
documentation requirement and is flexible to meet your individual needs.
 Eligible Person’s:
 Salaried Person
 Businessman
 Professional maintaining salary/business account with any bank.
 Eligibility Criteria:
 Age between 21 and 60 Years or retirement date; whichever is earlier
 Permanent Employee with Minimum 01 Years of job Experience.
 Age between 21 and 65 Years for Self Employed Businessmen/Professionals
 Minimum 01 Years in current business.
 Maintaining Salary/ Business Account in any bank.
 Have valid CNIC
 Finance Limits:
 Minimum Rs.100,000/- Maximum Rs.7,500,000/
 Monthly Installment(s) should not exceed 50% of disposable income.
 Tenure of Lease:
 Minimum: 01year
 Maximum: 05 years
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 Markup Rate:
1/2/3 Years ask side KIBOR plus 500 & 600 bps for salaried BOP existing customer & SEB/SEP
respectively. (KIBOR of respective tenure of 1,2&3 years shall be used). Fixed & Variable rate
option is available.
 Charges:
 Processing Charges (Non-Refundable) = Rs. 6,000/- (inclusive of
Documentation/processing charges, ECIB charges, FED and etc.)
 Insurance Rate = Actual charged by Insurance company (3.50%)
 Registration Charges = Actual. Payable directly by the customer
 Late payment Penalty = Rs 1/- per thousand per day for each rental.
 Pre-payment Penalty = @ 5% on outstanding principal. However, no penalty shall be
charged if the client repays in order to obtain finance for new vehicle. Required
Documents:
 Two Recent Photographs
 Bank Statement of last 06 months
 Latest Copy of utility bills (Electricity or phone or Gas)
 NTN certificate (If available)
 Documentary evidence in business or in the profession as per the requirement.
 Copy of professional degree for self-employed professionals
 Proprietorship Certificate/Partnership Deed in case of Self Employed Businessmen.
 Advance Salary Personal Loan:

A need based unsecured term loan that the borrowers can avail to meet their immediate financial
needs and pay back through equal monthly installments.
 Availability:
If you are Salaried individual and maintain or shift salary account with BOP then you can avail
this facility.
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 Loan Facility Limit:

 Minimum: Rs.50,000/-
 Maximum: Rs.500,000/-
Monthly Installment(s) should not exceed 40% of Net Salary.
 Tenure of Loan:
 Minimum: 1 year
 Maximum: 3 year
Markup Rate:
22.50% P.A (Fixed Rate for whole tenure of facility) Charges:
Processing Charges =Rs. 2,500/- per case (Upfront / Non-Refundable)
 Pre-Mature termination Charges: Nil
 Balloon & Partial Payment: Nil
 Late Payment Charges: Rs. 1/- per thousand per day of monthly installment amount for
overdue days.
 Eligibility Criteria:
Permanent Government Employees
 Age between 19 and 59 Years
 Minimum gross salary - Rs.14,000 per month
 No Default / Write Off History Contractual Government Employees
 Min experience - 1 years in current organization

 Minimum gross Salary - Rs. 50,000 per month
 Provide one personal guarantee of equivalent or senior grade of Govt. Employee
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 No Default / Write Off History Non Government Employees (Permanent / Contractual)

 Minimum experience - 3 years
 Minimum gross salary - Rs.14,000 per month (Permanent employee)
 Minimum gross salary - Rs.50,000 per month (Contractual employee)
 Provide one PG of equivalent or senior grade of same organization (for contractual
employee)
 No Default / Write Off History
 Required Documents:
Permanent Government Employees
 One photograph
 Salary slip (any of last six months) / employer certificate
 Department Confirmation Letter Contractual Government Employees

 One photograph
 Salary slip (any of last six months) / employer certificate
 Contract letter / Contract renewal letter Non Government Employees (Permanent /
Contractual)
 Copy of CNIC
 One photograph
 Salary slip (any of last six months) / employer certificate /employment letter
 Bank statement for last 6 months
 Contract letter / Contract renewal letter (for contractual staff)
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 ApnaRozgar Scheme
The Bank of Punjab shall provide financing to educated unemployed youth of Punjab who meets
eligibility criteria & other terms of scheme. The vehicles selected for the scheme are Suzuki
Bolan and Suzuki Ravi.
 Eligibility Criteria:
 Applicant must be an unemployed Punjab Domicile (male/female) holder domiciling in
any district of Punjab.
 Age between 21 to 40 years
 Relaxation in Qualification
 Have valid driving license
 Have valid CNIC
 Maximum worth of assets of the applicant (Self), Spouse, Parents & Children should not
exceedRs.2 Million threshold.
 Must not be a defaulter and not have a criminal record.
 02 Guarantors required Tenure of Loan: 05 years (60 months)
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 Required Documents:
 Application form
 Attested copy of:
1. Valid CNIC
2. Valid computerized driving license
3. Two recent photographs
4. Educational certificates
5. Domicile
 Affidavit on stamp paper of Rs.50/- regarding Net worth not more than Rs. 2.0 Million,
No Criminal Record & not defaulter of any financial institution.
 Loan Detail:
Vehical Suzuki Ravi Pickup Suzuki Bolan
Price (with discount) Rs.597,000 Rs.655,000
Down Payment to be paid by Rs.170,000 Rs. 177,000
qualified applicants
Markup rate 100% Markup shall be paid by 100% Markup shall be paid by
Government of the Punjab. Government of the Punjab
Monthly Installment (includes Rs.9,000 Rs.10,000
insurance premium)
 Amount to be Deposited with Application Form:

Application Form Fee (Non- Rs.2,000 Rs.2,000
refundable)
Token money (Refundable) Rs.9,000 Rs.10,000
Total Rs.11,000 Rs.12,000
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 Other’s Charges
 Late payment charges:

Rs/- 1 per thousand per day of monthly installment amount from due date till actual payment.
 Early termination charges:

5% on the outstanding principal amount. Repo charges: Charges to be borne by the
borrower/Lessee as per bank’s schedule of charges. Rs.10, 000/- as fixed penalty and
repossession charges upto Rs.100, 000/- or actual (whichever is lower) and Rs.500/- per day
warehouse charges or actual (Whichever is lower).
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CHAPTER NO 5 (WORK DONE BY ME)

5.1 INTRODUCTION OF THE BRANCH
I did my internship for six week from the Bank of Punjab; EgertonRoad Main Branch Lahore
.The bank of Punjab branch is located near LDA Plaza Lahore. The branch is well recognized
and fully equipped with networking system and provides a wide range of banking facility to its
customers. The branch is situated in the most competitive are where other banks like Alfalah
Bank, Allied Bank is situated and creating a rivalry among competitors.
5.2 Departments of the Branch:

Main department of the branch are as follow.
 Accounts Opening
 Accounts Department
 Remittance Department
 Clearing Department
 Credit And Advance
5.3 Learning as an Internee:

The time duration of my internship in the bank of Punjab was six week. The staff of the bank
was very cooperative and helped me while training in the different departments of the branch. I
worked in the different departments like Accounts Opening, Remittance Department, Reception,
Lockers handling and Clearing Department. During first two weeks I worked in the Accounts
Opening Department and learned that how to open and close the accounts. After this the next
week I worked in the Remittance Department and learned the working system in this department.
Next week I worked with Sir SafdarRazaNaqvi who is responsible for Lockers, Stationary and
all expenses of the bank. And the next week I worked with a lady who is hired as a receptionist
and I learnt simple deposits, online deposits and customer dealing.
In the end I worked in the Clearing Department and learn about the inward and outward clearing.
During my internship I worked with loyalty and gave my best.
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THE DETAIL DESCRIPTION OF MY INTERNSHIP IS AS FOLLOW:-
5.4 Account Opening:

In the Account Opening Department I worked for two weeks. Everyone can open the account in
the bank with the following procedure and the bank has right to open and close the account.
Bank has various types of accounts and the detail of these accounts is mentions above in the
chapter product and services.
 Account Opening Procedure:

Here is the basic information about the opening of the account and the procedure adopted to open
the account.
 Nature of the Account(Saving , Current, student or Business Account)
 Personal Account (Single or Joint Account)
 Basic information about the person who is opening the Account (Name, Father Name,
Date of Birth. Religion, Marital Status, Gender, Permanent Address and Contact Number
etc.)
 In addition to form following documents are required:
 Attested photocopy of CNIC
 Two passport size photos with blue background
 In case of salaried employed, attested copy of his or her service card or any other foam of
acceptable proof of services.
 In case of uneducated person, two passport size photos beside taking his left and right
thumb impression on the specimen signature card
 After getting the information and the documents necessary to open the accounts, The
bank officer verify the information through NADRA and if the available information is
correct the office allow to open the account in the bank. After few days of account
opening bank issue cheques book and ATM card to the customer.
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 Learning Experience:
In the first two weeks of my internship in The Bank of Punjab, My supervisor Mr. SaqibAfzaal
provides guidance about the opening of accounts. He told me about the procedure of opening an
account and what types of information is necessary to open the new account. There are different
types of accounts in the bank and each account has different requirements and different
documents are required to open the account. I did the duty of taking signature from the customer
who comes to open the new accounts. I also learned about the issuance of the cheques book and
ATM debit cards. My experience in the accounts opening department was very good and I had
learned so many things from my supervisor.
5.5 Clearing Department:

Clearing Department is a Department where the clearance of cheques takes place, same day
clearing and special clearing take place. This is a system of obtaining the process of cheques and
other instruments deposit by the customer drawn on the other bank with in the city or clearing
network. Clearance of cheques takes place through NIFT (National Institutional Facilitation
Technology). NIFT is an institute collets cheque from all branches of different banks within city
through its carriers and send them to the branches on which these are drawn for clearing.
 Leaning Experience:
In the next two week of my Internship, I worked in the Clearing Department. My supervisor
guides me about the clearing of an account. He told me about the detailed process of clearing
cheques. I also learned that there are two types of cheque book include 50 leaves and 25 leaves.
Beside this I learned that the tax is applied on the withdrawal of above amount of 50,000 in one
day. I also learned about the same day clearing of cheques, and there is no charges apply on same
day clearing. I also learned about inward and outward clearing of cheques which is done by the
NIFT.A separate register is maintained to record the daily basis transactions of clearing. I also
stamped on the cheque for the approval of cheque.
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5.6 Remittance Department:

Remittance department is a department where transfer of money from one place to another place
or from one bank to another bank takes place. The bank of Punjab usually makes the payment of
open cheques on counter and restricts to make the payment of cross cheques. Bank use different
methods of payment from one place to another place.
 Learning Experience:
After working on the Clearing Department the next two week of my internship, I worked on the
Remittance Department. First I was guided by Mr. Shafaqat about the procedure of remittance.
He told me how to make the (DD, TT and PO). Here I learned how the money is transfer from
one place to another place through Demand Draft, Telegraphic Transfer and Payment Order.
86
Chapter NO 6(Analysis)
6.1 SWOT Analysis
SOWT Analysis stands for Strength, Opportunity, Weakness and threats. SOWT Analysis
appraised an organization’s internal strengths and weakness as well as its external opportunity
and threats.
In SWOT Analysis the best strategy achieve through organization mission by
 Exploiting an organizations strength and opportunity
 Reduced its threats
 Avoid its weakness
 Internal Assessment
 STRENGTH:
 The main strength of The Bank of Punjab is that it is supported and funded by the Punjab
Government, so it built people trust.
 There is an improvement in the corporate and consumer loans.
 The Bank of Punjab has high level of Deposits as compare to other banks because of
Government Deposits in the bank.
 The Bank of Punjab has many branches in commercial as well as remote areas to meet
the consumer demand.
 The Bank of Punjab has strong online networking system due to this performance is
automatically improved.
 The bank of Punjab has strength in the market due to its name ‘Punjab’ and majority of
people prefer to deposit in this bank.
 The Bank of Punjab has signed MOU with the Government of Punjab and provides
facility to SME Financing, Consumer Financing and Agriculture Financing.
 The Bank of Punjab is rated among the top six Banks in the Pakistan, because of its high
credit rating as compare to other Banks and it perform positive role in the economy
through its innovative financial products.
87
 The main strength of the bank of Punjab is because of its good performance through
clients focused policy to increase its value and customer satisfaction as compare to other
Banks.
 WEAKNESS:
 Poor performance of employees is the weakness of The Bank of Punjab because
employees did not communicate with manager related to task issue for effective planning.
 The Bank of Punjab has well product and service line for its customers but it cannot
participate in the promotion of its products and services through electronic media.
 Traditional approaches for working and lack of internal control is one of the major
weakness of The Bank of Punjab,
 Lack of coordination among the employees, during the work if any employee face trouble
they cannot communicate with each other.
 The Bank of Punjab do not conduct training programs for their employees, so they do not
doing well in their jobs.
 External Assessment
 OPPORTUNITY:
 The Bank of Punjab is supported by the Government of Punjab due to this people trust
and reliable on the bank and it creates great opportunity to increase the deposit and
profitability by increasing its products and services.
 The Bank of Punjab maintains the accounts of Government of Punjab, so bank earns
commission on the Government transaction which increases the profit of the bank.
 The Bank of Punjab has a great opportunity of introducing Islamic banking system.
 Due to increase in Deposits the Bank of Punjab has opportunity to increase its investment
in financing and banking sectors.
 By introducing new schemes related to consumer financing, special deposit accounts, in
retail banking, agriculture and industry sector, the Bank can gain maximum share in the
market and compete their competitors.
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 It is a great opportunity for The Bank of Punjab, focus toward the information
technology because it is the future of the dynamic world. Bank also Design universal
Accounts like other foreign Banks provide to enhance the online facility.
 THREATS:
 There is a big threat for The Bank of Punjab because other Banks in the market provide
better policies to the customer.
 Punjab Government roles, regulation, changing trends and policies are big threat for The
Bank of Punjab.
 The Bank of Punjab is facing strong competition by its competitors because other Banks
improve its banking system and provide efficient services to their customers and the
business of these Banks are growing at very high level.
 Low Security. Political and Economic Instability and Inflation are a great threat for the
banking system because it reduces the deposits as well as customers.
6.2 Financial Analysis

 Financial Statement Analysis:
FIVE YEAR AT GLANCE
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The business volume of the bank of Punjab is stated in terms of Total Assets, Deposits,
Advances, Reserves, Borrowings, and Investments. To analyze the trend these items the
Horizontal Analysis of each item is calculated.
 Analysis:
90
The total Assets of the Bank of Punjab fluctuates during all years as they show an
increasing trend. The total assets are increased 6% in 2013 and the 11% in 2014. The year
2015 represents highest percentage on account of total assets as it was increased to 42%
as compare to base year. There was decrease of 6% in 2016 as compared to year 2015.
 Analysis:
The advances made by The Bank of Punjab shows an increasing trend in all years as compare to
base year. It implies that The Bank of Punjab is keener to advance money to lenders. The
advances were increased 5 % in the year 2013 and 14 % in 2014 as compare to base year. The
year 2015 represents an increase of 33% and the year 2016 represents highest percentage among
all years that is 61 % as compare to base year.
91
 Analysis:
The investments made by The Bank of Punjab fluctuate during all years. There was a decrease
of 4 % in 2013 as compare to 2012 base year. The year 2014 indicates an increase of 20% in
investments. The year 2015 represents an increase of 36%, which is highest among all years. But
in 2016 bank faces downward trend in investment.
92
 Analysis:
Shareholders' equity is equal to a firm's total assets minus its total liabilities and is one of the
most common financial metrics employed by analysts to determine the financial health of the
BankEquityshows upward trend in overall which is positive sign. The year 2016 represents
highest increasing percentage of 194% as compare to base year.
 Analysis:
The Banks’ reserves are banks' holdings of deposits in accounts with their central bank plus
currency that is physically held in bank vaults (vault cash). The reserves of The Bank of Punjab
fluctuate during all years as they shows mixed trend sometimes increases and sometimes
collapse. The reserves are decreased 45% in the year 2013. The year 2014 represents highest
increasing percentage of 194% as compared to prior year 2013. In 2015 reserves again decreases
by 49% and 2016 shows increasing trend in reserves of the bank.
93
 Analysis:
The deposits and other accounts of The Bank of Punjab shows a upward trend during all years.
In the year 2013, the deposits were increased very marginally, with the year 2014 represents an
increase of 29%. The deposits are increased 41% & 42% in the years 2015 and 2016
respectively. Overall increase in deposits shows that bank going toward right directions.
94
 Analysis:
The borrowing and other accounts of The Bank of Punjab shows a mixed trend during all years.
In the year 2013, the borrowings were decreased, The year 2014 represents an increase of 49% as
compare to prior year.The borrowings are increased 23% but decreases 61% in the years 2015
and 2016 respectively
Balance Sheet
The Bank of Punjab
(Rs. in Millions)
2016
Assets 2012 2013 2014 2015
(Quarterly)
Cash and Balances 17,298,251 23,820,864 23,622,411 26,190,481 23,833,778
with treasury banks
Balances with other 3,101,170 4,265,296 2,239,170 4,512,033 26,70,393
bank
Lending to financial 1,562,946 11,407,448 32,748,623 61,132,262 1,672,804
institutions
Investments-Net 129,552,044 123,973,891 154,943,890 176,079,792 150,835,898
Advances net 149,565,885 157,239,598 170,273,415 219,356,020 240,312,225
Operating fixed 3,473,491 3,514,801 5,490,121 6,484,312 6,631,898
assets
Deferred tax assets- 13,070,614 12,627,352 9,845,426 7,905,981 6,818,404
net
Other assets net 14,486,073 15,825,007 21,237,382 25,641,447 18,116,945
332,110,474 352,674,257 420,400,438 472,286,629 450,892,345
Liabilities 1,500,709 1,506,335 1,727,731 1,887,432 2,610,231
Bills payable 44,683,826 22,802,482 44,712,624 55,236,429 28,147,061
Borrowing 44,683,826 22,802,482 44,742,624 55,236,429 28,147,061
Deposits and other 266,055,761 306,460,694 342,290,693 374,960,986 377,803,338
accounts
Sub-ordinated loans - - - - -
Liabilities against 3,601 2,386 1,128 - -
assets subject to
finance lease
Deferred tax - - - - -
liabilities-net
Other liabilities 7,495,928 8,345,203 10,281,610 15,520,719 15,470,292
319,739,825 339,217,100 40,1043,786 449,605,566 426,030,922
Net assets 12,370,649 1,3457,157 19,356,652 22,677,763 24,862,589
Presented by
Share capital 5,287,974 1,0551,132 15,551,132 1,555,132 1,555,132
Discount on issue of - (263,158) (263,158) (263,158) (263,158)
shares
Reserves 1,187,433 1,539,659 2,081,243 2,329,001 2,329,001
Accumulated losses (12,743,218 (11,275,026) (9,083,209) (5,220,853) (3,748,595)
95
)
(6,267,811) 552607
Share deposit money 17,000,000 12,000,000 7,000,000 7,000,000 7,000,000
10,732,189 12,552,607 15,286,008 19,396,122 20,868,380
Surplus on 1,638,460 90,450 4,070,644 3,281,641 3994,209
revaluation of assets-
net of tax
12,370,649 13,457,157 19,356,652 22,677,763 24,862,589
PROFIT & LOSS ACCOUNT

THE BANK OF PUNJAB
(RS IN MILLION)
2016
Particulars 2012 2013 2014 2015
Quarterly
Interest earned 24,662,361 24,223658 29,517,673 31,262,880 7,065,879
Interest expensed 22,522,918 20,208687 20,525,783 20,198,798 4,414,349
Net Interest income 2,139,443 4,014,971 8,991,890 11,064,082 2,650,930

Provision against non-
performing loans &
Advances (965,430) (673,081) 1,118,605 3,431,451 396,730
Provision for
diminution in
investments 215,502 21,940 59,494 97,202 95,048
Bad debts write off - 241 - - -
(749,928) (650,900) 1,178,099 3,528,653 491,778
Net Interest income

after provision 2,889,371 4,665,871 7,813,791 7,535,429 2,159,152
Non Mark-up income
Brokerage income 762,490 775,622 909,596 828,229 180,189
Dividends 220,985 137,512 39,918 57,581 20,648
Foreign currency
Income 162,980 147,417 183,830 109,280 18,773
Gain on securities 1,449,814 1,391,874 667,322 5,013,546 962,262
Gain on revaluation of
investments 8,620 (4,296) (654) (8,522) (1,800)
Other income 585,856 1,148,797 1,000,173 1,635,064 491,143
96
Total Non-Mark up 3,190,745 3,596,926 2,800,185 7,635,178 1,671,215

Income
6,080,116 8,262,797 10,613,976 15,170,607 3,830,367
Non Mark-up Expense
Administration 4,437,680 5,204,409 6,217,344 7,394,142 1,945,635

Expense
Provision for other 168,419 32,945 (2,416) 224,382 250
asset
Provision against 325 17,875 32,274 (358,042)
off balance sheet
Other charges (40,590) 47,123 19,727 19,958 18
Total Markup 4,565,509 5,284,802 6,252,530 7,670,756 1,587,861
expenses
1,514,607 2,977,995 4,361,446 7,499,851 2,242,506
Extra ordinary items - - - -
Profit before
1,514,607 2,977,995 2,977,995 7,499,851 2,242,506
Taxation
Taxation- current 139,284 278,239 278,239 389,782 87,378
Year
Taxation- prior
(722,971) - - 143,953 -
year
Taxation- deferred 353,738 785,036 785,036 2,248,317 696,530
(229,949) 1,063,275 1,063,275 2,782,052 783,908
Profit after
1,744,556 1,914,720 1,914,720 4,717,799 1,458,598
taxation
97
Income Statement
The Bank of Punjab
(Rs in Million)
Particulars 2012 2013 2014 2015 2016
Profit after
1,744,556 1,914,720 2,841,535 4,717,799 1,458,598
taxation for the
Year
Other
comprehensive
incomes:
Actuarial gains
on - 8,391 2,514 29,350 -
measurement
recognized
Comprehensive
income
transfer to equity 1,744,556 1,923,111 2,844,049 4,747,149 1,458,598
Components of
Comprehensive
income not
reflected in
equity items to
be classified to
profit& loss
subsequent
period:
Deficit/ Surplus
on
revaluation of - - 1,940,269 (719,168) 726,228
investments-
net of tax
Items not to be
reclassified to
profit & loss in
subsequent
period:
Deficit/ Surplus
on
revaluation of - - 1,234,703 2,496 -
fixed asset-
net of tax
Total
comprehensive
1,744,556 1,923,111 6,019,021 4,030,477 2,184,826
income
for the period
98
Cash Flow Statement

The Bank of Punjab
(Rs. in Million)
2015 2016
Particulars 2012 2013 2014
Quarterly
Net cash flow
from operating 20,546,543 3,731,609 32,350,781 21,556,494 (33,770,449)
Activities
Net cash flow
from investing (20,640,440) 4,804,518 (36,732,383) (17,295,711) 29,557,378
Activities
Net cash flow
from financing (4,230) (79,699) 1,895,122 (1,128) -
Activities
Net increase/
decrease in cash
and cash (98,127) 8,456,428 (2,486,480) 4,259,655 (4,213,071)
Equivalence
Cash balance at
beginning period 20,496,379 20,398,252 28,854,680 26,368,200 30,627,855
Cash balance at
ending period 20,398,252 28,854,680 26,368,200 30,627,855 26,414,784
 Ratio Analysis:
The relationship of one item to another expressed in simple mathematical form is known as a
ratio. A single ratio in itself is meaningless because it does not furnish a complete picture. A
ratio becomes meaning full when compared with some standard. So we have taken ratios and
percentage of the BOP based in its record of the past financial and operating performance. On
the following pages, I make the analysis of the financial statements of BOP by using related
items for the last five years.
99
 Investment Ratio:
Net ProNet Profit After Tax/

Return on Asset
Total Asset
Return on Deposit
Net Profit After Tax/Deposit
Return on Equity Net Profit After Tax/ Equity
2014
No of Years 2012 2013 2015 2016
Return on Asset 0.52% 0.54% 0.67% 0.99% 0.32%
Return on Deposit 0.65% 0.62% 0.83% 1.26% 0.38%
Return on Equity 16.25% 15.22% 18.62% 24.32% 6.99%
 Remarks:
The return on assets shows a increasing trend, which is good sign for the bank of Punjab. Return
on deposits is also not stable; in starting years it increases and then decreases and knows again
increase. This is due to an increase in deposits and less increase in profit. The ROE ratio of five
years of BOP indicates that the profitability of the bank with equity is increasing day by day.
 Advance to Deposit Ratio:
Advance to Deposit Advance/ Deposit

No of Years 2012 2013 2014 2015 2016
Advance to Deposit 56% 51% 50% 59% 63%
 Remarks:
Advances to deposits ratio of The Bank of Punjab shows that the portion of loan in total deposit
of the bank is not stable, 1st three year from 2012 to 2014 decrease then increases. It means that
the credit (advances) circulation of the bank has faces ups and downs during the last five years,
but overall improving from 56% to 63% which is good sign.
100
 Capital adequacy Ratios:
Equity to Asset Total Equity/ Total Asset
Total Equity/ Deposit

Equity to Deposit
No of Years 2012 2013 2014 2015 2016

Equity to Asset 3.23% 3.56% 3.63% 4.10% 4.62%
Equity to Deposit 4.03% 4.10% 4.45% 5.17% 5.52%
 Remarks:
These ratios is showing increasing trend. It means that deposit of the bank is increases and assets
are also increases, which is positive sign for the Bank of Punjab.it shows bank moving into
progressive way.
Return on Investment ratio:

Return on Investment
Net Profit After Tax/ Investments
No of Years 2012 2013 2014 2015 2016
Return on Investment 1.34% 1.54% 1.83% 2.68% 0.96%
 Remarks:
The return on investment shows an increasing trend, which is positive sign for the bank of
Punjab. The ROI ratio of five years of the bank of Punjab indicates that the investments of the
bank are increasing on continues bases. It looks progressive approach in terms of business
development.
 Earning Per Share:
Earning Per Share Net Profit After Tax/ No. of Shares
No of Years 2012 2013 2014 2015 2016

Earning Per Share 2.81 2.33 1.97 3.03 0.94
 Remarks:
Earning of the bank shows the increasing trend. This shows that the earning capacity of a single
share is increasing and shareholder’s earnings increases every year. That’s the plus sign for BOP.
This ratio should be as high as possible because it has a great importance for an investor to invest
in the Bank of Punjab.
101
6.3PEST Analysis:
PEST analysis of any industry investigates the important factors that affect the industry and influence the
companies operating in the sector. PEST stands for Political, Economic, Social and Technological
analysis. The PEST Analysis is a tool to analyze the forces that drive the industry and how those factors
can influence the industry.
102
 Political Factors:
Government policies affect the banking sector. Sometimes looking into the political advantage
of a particular party, the Government declares some measures to their benefits like waiver of
short-term agricultural loans, to attract the farmer’s votes. By doing so the profits of the bank get
affected. Various banks in the cooperative sector are open and run by the politicians. They
exploit these banks for their benefits. Sometimes the government appoints various chairmen of
the banks. Various policies are framed by the SBP looking at the present situation of the country
for better control over the banks. Focus On Regulations of Government affects the performance
of banking sector most by legislature and framing policy .government through its budget
affects the banking activities securitization act has given more power to banking sector
against defaulting borrowers.
 Monetary Policy:
Bank Rate: The Bank Rate has been retained unchanged Repo Rate It has been reduced under
the Liquidity Adjustment Facility (LAF)Reverse Repo Rate : It has been reduced under LAF by
25 basis points from 3.5% to3.25% with immediate effect. RBI has retained the option to
conduct overnight or longer term repo/reverse repo under the LAF depending on market
conditions and other relevant factors.
 FDI Limit:
The move to increase Foreign Direct Investment FDI limits to 49 percent from 20 percent during
the first quarter of this fiscal came as a welcome announcement to foreign players wanting to get
a foot hold in the Indian Markets by investing in willing Indian partners who are starved of net
worth to meet CAR norms. Ceiling for FII investment in companies was also increased from
24.0 percent to 49.0 percent and have been included within the ambit of FDI investment.
 Economic Factors:
Banking is as old as authentic history and the modern commercial banking are traceable to
ancient times. banking has existed in one form or the other from time to time. Every year SBP
declares its 6 monthly policy and accordingly the various measures and rates are implemented
103
which has an impact on the banking sector. Also the Union budget affects the banking sector to
boost the economy by giving certain concessions or facilities. If in the Budget savings are
encouraged, then more deposits will be attracted towards the banks and in turn they can lend
more money to the agricultural sector and industrial sector, therefore, booming the economy. If
the FDI limits are relaxed, then more FDI are brought in India through banking channels.
 Growing Economy / GDP:
It is great news that today the service sector is contributing more than half of the Indian GDP. It
takes PAKISTAN one step closer to the developed economies of the world. Earlier it was
agriculture which mainly contributed to the GDP. The Pakistani government is still looking up to
improve the GDP of the country and so several steps have been taken to boost the economy.
Low Interest Rates SBP controls the Interest rate, which is based on several monetary policies.
Recently SBP has reduced the interest rate which stimulates the growth rate of banking industry.
 Inflation Rates:
Inflation represents a rise in general level of prices of goods and services over a period of time.
It leads to erosion in the purchasing power of money. Resultantly, each unit of currency buys
fewer goods and services. Different fiscal and monetary policies have curbed the Inflation rate.
To fight against the slowdown of the Economy, Government of Pakistan & SBP took many fiscal
104
as well as monetary actions. Clubbed with fiscal & monetary actions, decreasing commodity
prices, decreasing crude prices and lowering interest rate, we expect that Pakistan’s Economy
could again register a robust growth rate in recent years
 Savings and Accounts:
As stated earlier Pakistan continues to remain one of the high savings economies among the
emerging market economies. Gross Domestic Savings (GDS) of the Pakistan economy
constitutes savings of public, private corporate and household sectors. In the recent period the
high growth performance of the Pakistan economy is driven by rise in savings.
 Agriculture Credit:
Agriculture has been the mainstay of our economy with 70% of our population deriving their
sustenance from it. In the recent past, the sector has recorded a growth of about 4% per annum
with substantial increase in plan allocations and capital formation in the sector. Recently PM
Nawaz Sharif announce Kissan relief package 341 billion rupees for the betterment of the
agricultural sector. To achieve this, I propose to continue the interest subvention scheme for
short term crop loans to farmers.
 Socio Cultural Factors:
Socio culture factors also affect the business. They show in which people behave in country.
Socio-cultural factors like taboos, customs, traditions, tastes, preferences, buying and
consumption habit of people, their language, beliefs and values affect the business. Banking
industry is also operates under this social environment and it is also affect by this factor. These
factor are changing continuously people’s life style, their behavior, consumption pattern etc. is
changing and also creating opportunities and threat for banking industry. There are some socio-
culture factors that affect banking in India have been analyzed below.
 Shift towards Nuclear Family:
Attitude of people of Pakistan is changing. Now, younger generation wants to remain separate
from their parents after they get married. Joint families are breaking up. There are many reasons
behind that. But banking sector is positively affected by this trend. A family need home
105
consumer durables like freeze, washing machine, television, bike, car, etc. so, they demand for
these products and borrow from banks. Recently there is boost in housing finance and vehicle
loans. As they do not have money they go for installments. So, banks satisfy nuclear families
wants.
 Change in Life Style:
Life style of Pakistan is changing rapidly. They are demanding high class products. They have
become more advanced. People want everything car, mobile, etc..what their fore father had
dreamed for. Now teenagers also have mobile and vehicle. Even middle class people also want to
have well furnished home, television, mobile, vehicle and this has opened opportunities for
banking sector to tap this change. Everything is available so it has become easy to purchase
anything if you do not have lump sum.
 Population:
Increase in population is one of the important factor, which affect the private sector banks.
Banks would open their branches after looking into the population demographics of the area.
Percentage of deposit in any branches of banks depends upon the population demographic of that
area. About 70% of population is below 35 years of age. They are in the prime earning stage and
this increase the earning of the banks. Unequal Income distributions also affect the operations
and overall business of private sector banks.
 Literacy Rate:
Literacy rate in Pakistan is very low compared to developed countries. Illiterate people hesitate
to transact with banks. So, this impacts negatively on banks. But there is positive side of this as
well i.e. illiterate people trust more on banks to deposit their money; they do not have market
information. Opportunities in stocks or mutual funds. So, they look bank as their sole and safe
alternative.
106
 Technological Factors:
 Technology in Banks:
Technology plays a very important role in bank’s internal control mechanisms as well as services
offered by them. It has in fact given new dimensions to the banks as well as services that they
cater to and the banks are enthusiastically adopting new technological innovations for
devising new products and services.
 ATM’s:
The latest developments in terms of technology in computer and telecommunication have

encouraged the bankers to change the concept of branch banking to anywhere banking. The use
of ATM and Internet banking has allowed ‘anytime, anywhere banking’ facilities. Automatic
voice recorders now answer simple queries, currency accounting machines makes the job easier
and self-service counters are now encouraged. Credit card facility has encouraged an era of
cashless society. Today MasterCard and Visa card are the two most popular cards used world
over. The banks have now started issuing smartcards or debit cards to be used for making
payments. These are also called as electronic purse. Some of the banks have also started
home banking through telecommunication facilities and computer technology by using
terminals installed at customers home and they can make the balance inquiry, get the statement
of accounts, give instructions for fund transfers, etc.
 IT Services & Mobile Banking:
Today banks are also using SMS and Internet as major tool of promotions and giving great utility
to its customers. For example SMS functions through simple text messages sent from your
mobile. The messages are then recognized by the bank to provide you with the required
information. All these technological changes have forced the bankers to adopt customer based
approach instead of product-based approach. Technology advancement has changed the face of
traditional banking systems. Technology advancement has offer 24X7 banking even giving faster
and secured service.
107
 Core Banking Solutions:
It is the buzzword today and every bank is trying to adopt it is the centralize banking platform
through which a bank can control its entire operation the adoption of core banking solution will
help bank to roll out new product and services.
Chapter No.7(Points)
7.1 WeaknessesofBop:
The Bank of Punjab Advance salary, which has long been the flag-ship product for BOP, is
replete with charges of corruption, default and inefficiency.
 The Bank of Punjab huge number of borrowers is untraceable or correct whereabouts are
not known.
 The housing finance product of BOP lacks proper infrastructure including database
support even after five years of post-launch history. The similar products launched by
other commercial banks are much smaller in size are running on well-articulated systems
and are backed by proper policies and guidelines. The BOP product, despite boasting a
sizeable portfolio built around some reckless selling, is mostly infected.
 The BOP ApnaRozgar scheme is designed by Chief Minister order to support financially
potential educated unemployed. The scheme which had all the potential to become a
landmark was so badly mishandled by the Bank of Punjab.
 The Quality of infrastructure added by The Bank of Punjab during the last few years is
quite substandard as compared to that of peer banks.
 In BOP five year strategic plan approved by board of directors does not address any
serious thinking on
 Productivity improvement and benchmarking with the competition.
 Development required for serving major sectors of the economy.
 Infrastructure to support planned growth and vision.
 Inducting and leveraging specialized human capital.
108
As far as public interest is concerned there were no service standards benchmarks and guidelines
available in BOP. There were only old documents that were crafted.
 The Bank of Punjab outsourced employees was obtained from a single source. Most of
these are performing the core function of the bank outside their assigned duties without
any training and supervision.
 The Bank of Punjab is incurred large expenses in running those branches, which are not
producing any income.
 The up gradation of human resource is very slow in BOP. The branches of BOP have less
number of employees as their requirements. The concept of “One Man Show” is adopted
in many branches to save salary expenditure; even most of the branches use their security
guards for various tasks. The one reason for this is that the senior management is able to
decrease salary expenditure of the bank, which result an increase in the net profit.
7.2 RECOMMENDATIONS:
After doing my internship in The Bank of Punjab I give some recommendations on the basis of
experience in the bank.
 The Bank of Punjab should take steps to improve its HR and performance appraisal
system, and it must be on merit.
 The Bank of Punjab management required to motivate their branch manager and
supervisor to treat the employee fairly and lenient, and give freedom and power to work
independently and perform their job tasks because workers motivation increase if they
work independently.
 There should be conducting training programs for the new employees on regular basis,
and these programs should be conduct in the head office not in the branches because
branch staff busy at their own work.
 The Bank of Punjab should focus on the promotional and advertisement strategy to their
competitors in the market because the bank should not focus on it.
109
 The Bank of Punjab having too much bad debts because of performing loans to political
personality, according to my opinion bank should first recover their bad debts to increase
its profitability ratio.
 According to my opinion The Bank of Punjab should motivate individuals to open their
accounts in the bank because the main customer of the bank is Punjab Government and
corporate sector.
 The Bank of Punjab management should take effective steps to reduce the administrative
expenses and also control on the non-performing loans which is the main cause of their
losses.
 The Bank of Punjab should follow the good recruitment policies.
 The Bank of Punjab should motivate its employees through effective communication and
give bonus, incentive to the employees.
 The Bank of Punjab should built official appreciation programs like employee of the
month.
 According to my opinion there should be strict rule and regulation according to the
transfer and promotion of employees, on the base of merit give promotion to the
employees, no favoritism, nepotism and politics should be involved.
 The Bank of Punjab policy framework should be clear, effective and transparence.
 According to my opinion The Bank of Punjab should provide good and effective working
environment to their employees so that they should work with satisfaction.
 According to my opinion there should be an information desk to provide the information
and to receive the complaints from the customers, in every branch complaint box should
be installed so that customers can complaint easily because every person cannot directly
talk to the manager some person feel hesitation.
110
7.3 Conclusion
I conclude my report on the basis of learning in The Bank of Punjab. It is an exciting program
which gives a chance to work in the banking field I am having a good experience in The Bank of
Punjab. I have learned so many professional activities from this branch of the Bank and the staff
of the Bank is very cooperative with me. They helped me in every field and guide me very well
during my internship program. I took information from different department of Bank. My
knowledge and confidence improved so much after working in the Bank.
The Bank of Punjab play a vital role in the economy of the country and has strength over the
other banks as you see in the SWOT Analysis, but on the other hand, I observed some issues
related to the promotional and advertising activities of the Bank because The bank of Punjab do
not participate in the modern marketing activities of promotions as compare to its competitors
and facing low sale and deposits.
The administrative expenses are also increase day by day which shows that management of the
bank fails to overcome the expenses and the investment also decreased which is the part of the
earning assets, and other income sources also decreased. The bank of Punjab bears losses
because of non-performing loans which was given to political personalities and increase the cost
of bad debts.
I also observed that The Bank of Punjab is not offering handsome salary packages and bonuses
to their employees as compare to other banks. The Bank of Punjab has to make clear policies
related to employee’s salary and bonuses for the motivation of their employees.
The Bank of Punjab should have very poor HR system, and there should be no specific
performance appraisal system for the benefits of the employees. There should be a lack of
coordination between the Staff Members opportunity and making my internship learnable.
111
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The Bank of Punjab Internship Report

MBA (3 ½ YEARS PROGRAMME)BANKING AND FINANCE 2013-2017

UNIVERSITY OF PUNJAB LAHORE

CENTRAL INSTITUTE OF MANAGEMENT SCIENCES(CIMS) LAHORE

1.19 SOURCES OF FUND 27

1.23 RESERVE AT STATE BANK 35

3.11 BOP ATM’S MASTER CARD 55

 PARTIES TO LETTER OF CREDIT

SPECIAL THANKS TO THE STAFF OF THE BANK OF PUNJAB

Without their corporation it is not possible to complete my internship.

MR. AZEEM IQBAL BRANCH MANAGER

MISS. FARAH KHALID BRANCH OPERATIONAL MANAGER

MISS. SADIA SARSHAR REMITTANCE DEPARTMENT

MISS. FARAH SAJJAD ACCOUNT OPENING OFFICER

MR. WAQAS TARIQ OGII FOREIGN CURRENCY OFFICER

MISS. SONIA BILLS COLECTION OFFICER

MR. JUNAID HAIDER CASH OFFICER

MISS. MUBASHRA CASH MANAGEMENT

My internship program period is for 6 weeks. I worked in ACCOUNTS OPENING

Chapter No 1(Banking sector)

1.3 NATIONALIZATION OF BANKS:

To dispense with undesirable and uneconomic rivalry among business banks.

1.4 Number of Employees:

1.5 Main Offices:

The Bank has been divided into seven regions.

1.7 AWARDS AND ACHIEVEMENTS

 3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agriculturals

 Best Corporate Report Award

 16th Bolan Excellence Award

1.8 PUNJAB GOVERNMENT SHOWS FAITH IN BOP

1.9 MAJOR CUSTOMERS OF BOP

1.10 BRANCH NETWORK:

1.11 Objectives of Studying the Organization

 Major objectives to study this organization are:

1. To get awareness about the business development & financial techniques.

1.12 BOP Top Level Management

 Mr. NaveedHafeezShaikh Acting General Manager HR

1.16 Board of Directors:

 Dr. Pervez Tahir

 Mr. Mohammad Jehanzeb Khan

1.17Organizational Chart Of The Bank Of Punjab:

1.18 Organizational Structure of Bank of Punjab:

PAYMENT RECIEVER’S UTILITY BILLS

1.19 Sources of Funds:

 Al-Baraka Islamic Bank Limited

 Emirates Global Islamic Bank Limited

 Administration & Human Resource Division:

 Human Resource Department:

 Transfers & postings

 The maintenance of the existing building owned by the bank.

 Prepare the policies regarding the sanctioning loan

 The basic functions are:

 Audit & Inspection Division:

1.22 General Banking of “The Bank of Punjab”

 PLS Saving Account

 Short Notice Term Deposits

 Term Deposit Receipts

1.23 Reserves at State Bank:

2.1 INTRODUCTION OF DEPARTMENTS

 Account Opening Procedure:

 Entry of Cheque Book:

2.3 Clearing Department: