Bop

INTERNSHIP REPORT ON
BANK OF PUNJAB
“Passion Reborn”
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Internship Report of Bank of Punjab
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Scanned Copy of Training Completion Certificate
Areas Covered by Report
The report I am submitting to my honorable teacher contains the following

areas:
Introduction of the bank and the banks history along with the
administration, the audit committee, the branch banking, and the
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products offered by the bank. The bank in which I performed my
internship has departments division like this:
o Treasury / Finance Department

o Foreign Trade Department
o Human Resource Department
o Consumer Banking / Operation Department
o Credit and Advances Department
o Risk Management Department
o Audit & Inspection Department
o Sales Marketing and Media Department
o Islamic Banking Department
o International Banking Divisions
Most of the department’s functions are being learned during the

internship period. The report also contains the skills and the work
performed during the tenure. Ration analysis, interpretation of the ratios,
and SWOT analysis of the bank.
Table of Contents
Pages
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Executive Summary 7
Acknowledgement 8
Dedication 9
Introduction to report 9
Mission Statement/Vision Statement 12
Objectives 13
Organizational Structure/Hierarchy 14
Products/Services/ Departments 19
General Banking at BOP 37
Work Done By me 72
Ratio Analysis& Interpretation and
Financial Analysis 83
SWOT Analysis 88
Recommendations 92
Conclusion 95
Bibliography 96
Glossary 96
Annexure 97
 Executive Summary
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Getting opportunities, learning and observing is always a very special
thing for starting professional career. An imaginative and farsighted
person will always try to use these opportunities to groom his/her own
education, personality and attitude. As a student one is benefited by
acquiring awareness and practical knowledge for starting the professional
career. The process of learning in the well established and professional
environment is very vital for building a career. This process of learning
acts as the cornerstone to enhance career prospects, develop the
confidence in the students.
According to my internship program, I completed my six weeks

internship at Bank of Punjab, Nowshera virkan Branch disst.Gujranwala.
Bank of Punjab was established in 1989 and was given the status of a
scheduled bank in 1994. The bank of Punjab is listed at Lahore and
Karachi Stock Exchanges and the Bank is working as a scheduled
commercial bank with a network of almost 324 branches at all over major
locations in the Punjab.Its 7 main departments are:
 Account opening Department
 Cash Department
 Deposit Department
 Clearing Department
 Remittance Department
 Bills Department
 Account Department
All the main functions and features of these departments will be briefly
highlighted in this report in next pages. The bank’s infrastructure, policies
and plans all are geared toward promoting speedy services to all their
valued customers. Bank of Punjab’s overall performance is better as
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compared to other scheduled banks. The management believes that Bank
of Punjab’s main objective is service oriented. The slogan of BOP is:
“PASSION REBORN”
 2) Acknowledgement
“All praise and thanks for Almighty Allah who is entire source of
knowledge and wisdom to mankind.
 The internship offer the opportunity for fresh graduates, masters to

get practical knowledge and analytic know how about the
professional environment and to make optimal use of the supervised
on job training. Sound interaction with colleagues and learn the art
of public dealing and managing crisis in the crucial situations and
polish their skills in problem solving.
 I consider myself fortunate that I can avail this opportunity to do
internship in one of the leading Commercial bank named “Bank of
Punjab, Nowshera Virkan branch Disst. Gujranwala”. The branch is
composed of highly qualified and competent professional staff and
equipped with latest technology. The staff members are articulate,
diligent, well manner and are honest to their job and working under
the dynamic supervision and guidance of innovative Branch
manager Mr. Mohammad Riaz Cheema.
 I want to mention the staff members those are encouraged, helped
and support me in completing the internship and compilation of this
internship report. Without their help, support and sincere
appreciation, I would not be BOPe to complete this task.As banks are
generally very much sensitive to their secrecy, this branch has been
extraordinarily kind to let me handle their delicate operations and
also assign me some assignment and tasks.
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 Throughout the tenure, the staffs were forthcoming, supportive and
approachBOPe. I feel that the experience was highly rewarding.
Bank of Punjab was really ideal and inspirational venue to
understand the internship. My time at Bank has flown away very
quickly. It has been a brilliant and very informative professional
experience. My six weeks tenure at Bank of Punjab has been very
rich and valuable on job work experience. I feel confident looking
towards the future professional undertaking.
 At the end, I wish to thanks all the staff members who encourage,
appreciate and support me in every moment when I need help I
have made in such a short time and also I shall always remember
this short memorable training experience which flourish our studied
things at University of the Punjab Gujranwala Campus and make our
professional skills effectively.
3) Dedications
I Dedicate This Work To My
Honorable Parents
 Who have a great source of love, affection and encouragement

throughout my academic career and their matchless sacrifices in the
process of my upbringing make me respectful to all human talk. And
who are always a great source of support & encouragement for me
they would be very proud to see this report.
Honorable teacher
 Dedicated to my teachers without whom I wouldn’t be able to be the

same.
 I want to thank Sir Hafiz Imran Akram for the support and
dedicated assistance throughout the session.
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4) Introduction to report.
History of BOP
The Bank of Punjab was established in 1989 and was given the status of
scheduled bank in 1994.The architect of the bank Mr. Nawaz Sharif then,
the Chief Minister of Punjab, performed the inauguration. Authorized
capital of The Bank of Punjab is RS.50.0 Billion.
The bank of Punjab is listed at Lahore and Karachi Stock Exchanges. Fifty
one percent (51%) of the share capital is held by the Government of
Punjab and the rest is owned by Pakistani individuals/firms and foreigners.
The Bank of Punjab is working as a scheduled commercial bank with a
network of almost 327 branches at all over major locations in the Punjab.
The Bank provides all types of banking services such as Deposits in Local
Currency and client 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 local resources, promoting savings and providing funds for
investments. The bank offers attractive rates of profit on all deposits,
opening of foreign currency accounts and handling of foreign exchange
business for example imports, exports and remittances, financing, trade
and industry for working capital requirements and money market
operations. 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
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of our economy the Bank of Punjab has introduced "Kissan Dost
Agriculture Finance Scheme" to small farmers.
 BOP Nowshera Virkan Branch
An overview
The branch is almost 02 years old. I think It is one of the latest branches
of bank’s being started in the area. It has a vast customer base. There are
many old customers who have opened their accounts when the branch
started its operations in the area. The supportive environment is
comparatively less hectic than foreign banks, and easy working and
approaches make the Bank of Punjab a quick choice for customers. The
branch location is good because it is located in customer focused area as
it’s a market area.
Structure of the Branch

The branch has got sufficient staff to meet the needs. The staff is less and
present officers got burdened when some times more than usual
customers come especially in the beginning of every month. The request
for more staff has been sent to the Regional office since 2015 but no
appropriate actions have been taken still now. If we compare it to the
other banks we come to know this staff is far less than them. There is no
system administrator, only one cash officer and one billing officer is there
which is not appropriate for such a busy branch. The burden is
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accumulated on few peoples and there is no chance of relief in near
future.
Designation No. of
Employees
Branch Manager 1
Operation 1
Manager(OG-l)
Officer Grade ll 1
Officer Grade lll 2
Cash Officer 1
Messenger 1
Gun Man 2
Peon 1
Major Customers and Markets of BOP

Almost people of every field of life are the customers at this branch.
During my stay I encountered government servants, businessmen,
pensioners, house wives, zakat deserving peoples and some walk in
customers.
Some of the major customers of Bank of Punjab are:
 Educational Institutes
 Agriculturists
 Pakistan Telecommunication Private Limited
 WAPDA
 Pharmaceutical Companies
 WASA
 TMO
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Market is really very dynamic and challenging. It is really tough job to
survive in a locality where 3 private and 2 other semi government banks
are already operating. Every bank gives its own attraction and gains
customer’s loyalty at times through marketing activities and with more
advanced services.
BOP still makes a difference in attracting customers with minimum

deduction for special services. A huge number of illiterate customers walk
in the bank and are facilitated by the staff, and such customers are always
demand for less deduction on special facilities like Pay order, Demand
Draft, BOP online etc.
5 ) VISION AND MISSION STATEMENT
 Vision Statement
“To be a customer focused bank with service excellence.”
 Mission Statement
“To exceed the expectations of our stakeholders by leveraging our

relationship with the government of Punjab and delivering a complete
range of professional solutions with a focus on program driven products
and services in the agriculture and middle tire markets through a
motivated team.”
 Core values
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 Our Customer: As our first priority.
 Profitability: For the prosperity of our stakeholders that allows us to

constantly invest, improve and succeed.
 Corporate Social Responsibility: To Enrich the Lives of community

where we operate
 Recognition and Reward: For the talented and high performing

employees
 Excellence: In every thing we do.
 Integrity: In all our dealings.
 Respect: For our customers and each other
Objectives
The Bank of Punjab being a commercial bank performs all those function
as are attributed to such banking institutions both in the areas of
resources mobilization and investment. It is providing funds for commerce,
trade, industry, and agriculture but its main emphasis is on accelerated
development of agro-based industry. So the main objective of the bank is
to channelize the resources into sectors, which have suffered from
neglect. Other objectives included.
1. To provide speedier services to the common man.

2. To provide the highest rate of return to the shareholders by
achieving good profitable growth.
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3. Ensure that its performance in all facts of its operations more than
matches that of its competitors.
4. To enter into financing contracts and to mobilize resources in local
and now in foreign currencies consistent with the objects of the
bank.
5. Maintains a comprehensive range of domestic and international
activities.
6. Act as a reputable efficient and responsible organization.
6 ) Organizational Structure
Head Office:
Head Office and the main branch of BOP are in Gulberg 3

Lahore & Egerton road Lahore Respectively.
Regional Offices
The Bank has been divided into seven regions each consists of number of
branches. The administrate control, operational control and increasing
business volume is the responsibility of the Regional chief.
1. Regional Office Lahore.
2. Regional Office Rawalpindi.
3. Regional Office Gujranwala.
4. Regional Office Faisalabad.
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5. Regional Office Multan.
6. Regional Office Karachi / Quetta.
7. Regional Office Peshawar
Rests are the branches working under these regions which are almost 324
in all over Pakistan.
Board of Directors
Name Designation
Mr. Safdar Javaid Syed Chairman
Mr. Naeemuddin Khan President
Mr. Azhar Hameed Director
Mr. Haroon Khawaja Director
Mr. Farooq Ahmed Awan Director
Mr. Naveed Masud Director
Mr. Mujtaba Jamal Director
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Chaudhry
Mr. Shafqat Ellahi Director
Mr. Shafqat Mahmood Director
Mr. Tariq Mahmood Pasha Director
Mr. Viqar Ahmed Khan Director
Mr. Raza Saeed Secretary To The Board
Organizational Hierarchy
Central Management Hierarchy
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CHAIRMAN
BOARD OF DIRECTORS
MANAGING DIRECTORS
DIVISIONS
BRANCHES
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Bank Management Hierarchy
BOARD OF DIRECTORS
CHAIRMAN
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT (EVP)
VICE PRESIDENT (VP)
ASSISTANT VICE PRESIDENT (AVP)
OFFICER GRADE-I (OG-1)
OFFICER GRADE-II (OG-2)
OFFICER GRADE-III (OG-3)
CASH OFFICER
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Hierarchy on the Basis of Power
Chairma
n
Managin
g
General
Manager
Regional
Officer
Area
Manager
Branch
Manager
Operatio
n
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 7 ) PRODUCTS /SERVICES/ DEPARTMENTS
Deposit Products:
In modern times very few business enterprises are carried out solely with
the capital of the owners. Borrowing funds from different sources has
becomes an essential feature of today business enterprise. But in the case
of an entire banking system is based on it. The borrowed capital of the
bank is much greater then their own capital. Banks borrowing is mostly in
the form of 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 they is lent out the greater of the profit margin of the bank.
Furthermore, the larger the deposit the larger will be the funds available
for employment; larger the funds lent out the greater will be the profit of
the bank.
 Current Account (CD):
Current account is a type of chequing account that banks offer, this

account does not provide any profit on it and neither zakat is deducted on
this account. There is no limit of transactions. There is a facility of credit
also available that is running finance on current account.
The major segments of this account are sole proprietors, partnerships,
companies (both private& public) and any other individual that wants to
open their account and not earn profit or pay zakat on their balances.
 BOP Basic Banking Account (BBA):
The minimum initial deposit will be Rs.1000. no profit will be payable. No

fee (service charges) charges for maintaining such account will be
charged. There will be no limit for maintain minimum balance. A customer
with a BBA, does receives an ATM card.
In the cases, there balance in BBA remains “NIL” for a continuous 6 month
period, such accounts will be closed. The segment that this account is
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targeted is towards the salaried individuals that have just started their
professional careers, students or any other individual that may want to
open an account with a small amount of money.
 BOP Tijarat Account (BTA):
In order to further facilitate the managers in targeting customers, it will be

at the discretion of the manager to offer the incentive packages from day
one. The product is available for all customers who are eligible to open
current account as per bank’s criteria i.e.
1. Minimum monthly average balance from Rs. 50,000 & over.

2. Monthly account maintenance charges will be applicBOPe if account
balance falls below Rs 10,000/-
3. Inter-city/within-city On-line deposits/withdrawals charges are Rs 5/-
flat
4. PO/D.D/MT charges as Rs 5/-flat
 BOP Supreme Current Account:
Foreign currency account can be opened in four currencies namely US

Dollars, UK pond sterling, Yen and Euro at any of the authorized branch.
Profit And Loss Sharing Term Accounts
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BOP Pehlay Munafa Deposit Scheme (profit in advance):
This is a fixed deposit product with advance payment of profit and free
ATM/Debit Card. The deposit can be invested for 3, 6, 12, 15, and 18
months. The term account can be opened singly or jointly. Minimum
investment is Rs. 50,000/-. No maximum limit.
 Munafa hi Munafa term Account (monthly payment of profit):
The product is available to all type of customers who are eligible to invest
in term deposit as per bank’s criteria. . The term account can be opened
singly or jointly. Minimum investment is Rs. 100,000/-. No maximum limit.
Profit will be paid on monthly basis.
BOP TAQWA ISLAMIC BANKING
BOP TAQWA Islamic banking Division,is all set with its rebranded and
revived outlook to provide customers with distinct Shariah
Complaint Banking Service in the Islamic Financial Market.
Allhamdulilah, BOP TAQWA has proved to be a successful story where the

Pakistan largest conversion project was successfully completed and
resultantly an extended network of branches spread across Punjab ,
KPK and AJK is fully operational and serving market needs.
TAQWA IBD still has a long way to go. We are in continuous process of
Growth and development. Our team is rigorously working on
development of distinctive Riba Free and Shariah Complaint
products to serve the needs of all sectors of economy including
corporate, commercial and consumer.
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Shariah Board
MUFTI MYHAMMAD ZAHID

(Chairman Shariah Board)
Mufti Muhammad Zahid is a renowned personality in the field of Shariah
having a long association of 26 years while serving as a teacher in various
branches of Islam & Arabic language, Vice President of Jamia Imdadia
Faisalabad and member of its Dar-ul-Ifta since 1989.
Mufti Muhammad Zahid is working as General Secretary Centre for Islamic
Economics, Faisalabad, Member Regional Focus Group on Islamic Banking
State Bank of Pakistan, Member Shariah advisory cell International Islamic
University Islamabad, Member Executive Committee International League
of Islamic Literature (????? ????? ???????? ????????) Pakistan Chapter,
External Examiner for viva-voce of thesis of LLM (M. Phil.), Faculty of
Sharia & Law, International Islamic University, Islamabad, Member Board
of Studies Faculty of Sharia & Law (Dep. Islamic Law) International Islamic
University Islamabad, Member Ulema Board PIPS (Pak Institute for Peace
studies), Member consultancy group Centre for Islamic Business Riphah
International University,Chairman of the Shariah Supervisory Committee
of Bank of Khyber and Chairman Shariah Board of Askari Bank Limited and
Shariah Board Member of MCB-ArifHabib Islamic Fund.
Mufti Muhammad Zahid has authored various publications including ??????
??????? ?? ???????)) (translation from English to Urdu of the work of Mufti
Muhammad TaqiUsmani).
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Mufti Muhammad Zahid holds Shahadh Al-Alamiyyah (????? ????????) from
Wifaq-ul-Madaris, Al- Arabiyyah Pakistan and Masters Degree in Arabic
from International Islamic University, Islamabad.
Dr. MUFTI EJAZ AHMAD SAMADANI

Member – Shariah Board
Dr. Ejaz Ahmed Samdani is an eminent Shariah scholar and has sound
experience of Islamic Banking & Finance. Dr. Samdani has strong
academic background in Islamic Studies and Islamic Economics. He
completed his all religious qualifications such as Takhassus fi Iftaa &
Shahdatul Aalimiyah from Jamia Dar ulUloom, Karachi.
Dr. Samdani has done his Masters of Arts in Islamic Studies and LLB from
Bahauddin Zakariya University and Sindh Muslim Govt. College
respectively Further, he did his Doctorate (PhD) from Karachi University
(on the topic of Islamic Banking and Gharar (uncertainty).
He is the Faculty member of Centre for Islamic Economics, Vice Chairman
of “Takhassus fi Al Dawa” in JamiaDarulUloom, Chairman Shariah Board
Maldives Islamic Bank and Member Shariah board of various banking and
non-banking financial institutions in Pakistan.
He has delivered several lectures at local and international forums and
has issued about more than three thousand fatawas on different Islamic
topics especially in Islamic Finance and family law. He has written many
books on different Shariah matters and his several research topics have
been published in various well renowned newspapers and magazines.
Dr. MUHAMMAD MUSHTAQ AHMED

Resident Member Shariah Board
Dr. Muhammad Mushtaq Ahmed is a renowned Shariah scholar with
proven experience of Islamic Banking and Finance. Dr. Mushtaq has
preeminent academic background in Islamic Studies & Islamic Banking
and he did his Doctorate (Phd) in Islamic studies/ Shariah with research
topic of “Islamic Banking Practices - Shariah Perspective”. He specialized
in Fiqh, Iftaa and Shariah from DarulIftaaWalIrshaad Karachi Pakistan; he
has distinction as Gold Medalist in M.A Islamic Studies (Shariah)/Aalimiyya
from JamiaDarulUloom, Karachi.
He is teaching Shariah and Islamic banking courses since 2006. He has
delivered lectures in various national and international programs about
Islamic Banking, his research papers on Islamic Banking and Finance and
social issues have also been published in international research Journals.
Bai Misaal Term Deposit (profit on maturity): Islamic

Products
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TAQWA ISLAMIC BANKING has stepped in the Islamic Financial Market with
its assorted products and services which are both industry compatible and
competitive. Under the kind supervision of our worthy Shariah Board,
TAQWA IBD is providing Shariah compliant solutions to its financial
customers.
On deposit side, we are serving our customers with following products;
 BOP Taqwa Saving Account
 BOP Taqwa Current Account
 BOP Taqwa Riba Free Certificates
 Margin Munafa Account
 Cash Management Facility Account

We are confident that we will be BOPe to expand our Islamic Financing
Services to all sectors of economy including Consumers, SME, Commercial
and Corporate sectors across Pakistan. Presently, we are offering following
products;
 Ijarah finance facility
 Murabaha finance facility
 Istasna finance facility
 Musharakah finance facility
 BOP Taqwa Car Ijarah

We are determined to facilitate our valued customers through adding
more beneficial schemes to our product basket.
Minimum investment is Rs. 100,000/-. No maximum limit. Profit will be

paid on maturity along with principal amount.
In case of pre-mature encashment, corresponding rate applicable to the

period of retention then declared by the bank will be paid, provided
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deposit is kept for a period not less then 7 days. The profit shall be paid on
normal term deposit rates of that time.
 Senior Citizens Term Deposit (monthly payment of profit):
This is a fixed deposit product with high rate of profit payable on monthly
bases with a fixed tenure of one year. The product is available for senior’s
citizens having age of 55 years and above and are eligible to invest in
term deposit as per bank’s criteria.
Minimum investment is Rs. 100,000/- while maximum deposit limit is Rs.

3,000,000
Profit And Loss Sharing Chequing Accounts:
 Profit Loss Saving Accounts (PLS):
These types of accounts are designed to encourage the saving habit of

the customer and lead to long term or invest relationship. Bank saving
account are in the nature of deposit accounts and are not normally
available for drawings. PLS saving accounts can be opened with the
minimum sum of Rs. 100
Savings accounts with the banking sector represent a very small

proportion of total deposits. Customer can make withdrawals from this
type of account. Withdrawals against this account are very low.
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 Young Lions Saving Accounts (YLS):
BOP introduces a whole new banking experience aspiring youngsters. The

product is availBOPe for all children less than the age of 18 years to open
PLS minor saving account with their parents/guardian as per bank rules.
The profit will be credited on monthly basis in the respective account.
However for renewal, charges will be applicBOPe. Free first 25 leaves

cheque book will be issued at the time of account opening.
 Gharayloo Saving Account:
This is a saving bank product available for all housewives who are eligible
to open a saving account as per bank’s criteria. The account can be
opened singly or jointly with husbands.
Minimum initial deposit will be Rs. 10,000/-. Unlimited transactions

(debit/credit). In case balance falls below Rs. 10,000/- account
maintenance charges will be applicable.
Loan Products:
A loan is a type of debt. Like all debt instruments, a loan entails the
redistribution of financial assets over time, between the lender and the
borrower. In a loan, the borrower initially receives or borrows an amount of
money, called the principal, from the lender, and is obligated to pay back
or repay an equal amount of money to the lender at a later time.
 Commercial Finance:
Commercial finance is of three types:
1. Running finance
2. Demand Finance
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3. Cash Finance.
1. Running Finance:
Running finance is the advance which is given by allowing the customer to

withdraw more money from his current account than he has in it. Running
finance at The Bank of Punjab can be against pledge of shares,
Government securities, and hypothecation of stock.
2. 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
mortgage. Advances are also made against equitable mortgage of
property, whereby the original Title Deed, 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.
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3. 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.
 Agriculture Credit
There are many agriculture promotion schemes provided by BOP.
1. Kissan Dost Agricultural Finance Scheme
Such type of scheme provides farmers a real plate form to accelerate. The
basic purpose of this scheme is to provide financial facility to farmers for
purchase of inputs (Seed, fertilizer, pesticides, fungicides etc). Maximum
limit is of Rs.500000 according to per acre of the crop. Security is charges
on Agriculture Land through Agriculture Pass Book. The borrower will have
to arrange life assurance under the Bank’s charge.10% mark-up per
Annum.
2. Kissan Dost Tractor Finance Scheme
Financial facility provided to the farmers and non farmers (those who
provide tractors to farmers on rental basis for various tractor related
operations), for purchase of Tractor on Lease Finance Basis. Resident Self
Cultivator having Agriculture Land minimum 5 acres and maximum 50
acres. Maximum limit is of Rs. 750,000/-.10% to 20% of the cost of Tractor
will be paid by the borrower on case to case basis. Lease Tractor (to be
registered in the name of Bank); Charge on Agriculture Land through Agri.
Pass Book; One personal guarantee of reputBOPe person. Two written
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satisfactory market checking reports. 10 equal half yearly installments
(within five years).
3. Kissan Dost Aabrari Scheme:
Financial facility provided to the farmers for installation of Tube well,

turbines etc. Resident Self Cultivator having Agriculture Land minimum 5
acres and maximum 50 acres.Maximum Rs 500,000/-. 20% of the cost of
project will be paid by the borrower. Lease Assets i.e. Engine, Tube well
and other related implements (The vendor will issue receipt in the name
of Bank). Charge on Agriculture Land through Agri. Pass Book. Guarantee
of reputBOPe person acceptBOPe to Bank. Two written satisfactory market
checking reports. The maximum amount of Finance will be allowed upto
75% of the Oast Bai Value of land (Oast Bai is verified by Revenue
Officer).8-10 equal half yearly installments (within four to five years).
 Business Promotion Finance Schemes (Consumer Finance)
1. BOP Car Loan

2. BOP Assaish Loan
3. Quick Cash
4. House Loan
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1. BOP Car Loan
BOP car loan is a demand financing facility to purchase brand new locally
manufactured/Assembled cars for personal use. This facility can be
availed by salaried person of different nature and by the business persons.
All must have the holdings of CNIC.
2. BOP Aasaish Loan
BOP Aasaish loan is demand finance facility for purchase of consumer

durBOPe goods like TV, Refrigerators, Mobiles, Microwave Oven, Fans,
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Audio/Video system etc with no down payment, in addition with the free
home delivery. The financing tenure of this product is max 36 months. The
nature of employment should be salaried or the business man.
3. Quick Cash:
You are thinking of sending your child abroad for higher education or a
daughter’s wedding perhaps. However, you do not see to fulfill them as
you do not have money. Don’t get troubled as Bank of Punjab has the
answer to this in the form of Quick Cash.
It is a running finance facility provided to salaried individuals through their

bank accounts. You can get up to 50,000 and 500,000, base on your
income.
4. House Loan:
If you are a government employee, you are in private employment,

businessman or a professional, you can avail this facility.
The amount of loan that can be availed:
 For the purpose of purchase of house flat or construction of house

the minimum loan is Rs.100, 000 and the maximum depends on the
amount of debt. Debt/equity should be 70:30
 For house improvement and renovation the minimum amount is Rs.

25,000 and the maximum depends on the amount of debt.
Debt/equity should be 20% of assessed value
Page 32 of 105
.
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 SERVICES
Commercial Banking
The Commercial Banking Group has been formed to cater the needs of
small & medium size customers for increasing Bank’s business
significantly with clear focus, repositioning of resources and active
marketing to improve Bank’s profitability.
Cash Management
Page 34 of 105
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 availBOPe in the customer operating Account.
Online cheque deposit

Taking another step towards customer convenience, BOP now offers
transactional convenience across all its 273 branches.
Customer can deposit cheques/instruments in any branch of BOP across

Pakistan and can receive credit in account maintained with parent branch.
Charges are applicBOPe according to the accounts.
Inward Home Remittance

BOP provides the services of inward home remittance from anywhere in
the world. It is easy, safe, reliable, and fast way of transfer of money.
All branches of BOP across Pakistan working with partners for payment of
inward remittance from UAE, USA, Europe and other countries.
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.
Page 35 of 105
E- Banking
BOP is currently offering window-based online banking to its customers,
which gives access to information on their accounts and the liability to act
on the latest information received over the net.
Lockers
It is one of the utility services that BOP provides to their customers for
keeping jewellery, important documents and other valuBOPes.
Page 36 of 105
Pay Order
BOP provides transfer of money using different facilities. Its pay orders are
a secure and easy way to move the money from one place to another. The
charges for this service are extremely competitive.
Demand Drafts
BOP provides safe, speedy and reliable way to transfer money at vary
reasonable rates. Any person whether an account holder of the bank or
not, can purchase a Demand Draft from a bank branch.
Agricultural Finance
It help farmers utilize funds efficiently to further develop and achieve

better production. It provides farmers an integrated package of credit
with supplies of essential inputs, technical knowledge, and supervision of
farming.
Page 37 of 105
Agriculture Loans
Page 38 of 105
Nurtures the best in nature
Our Strategic Business Plan identifies Agriculture as a priority sector.
Agriculture is the base on which the edifice of national economy is built
and, needless to emphasize, also constitutes the fulcrum for poverty
alleviation, employment generation and over all prosperity of the farmer.
Our countrywide network of branches, that too predominantly
at Tehsil level/remote rural locales and environs, affords us advantageous
flexibility, outreach and demographic coverage to access and serve the
Agrarians at their convenience on their doorsteps. Our staff includes over
125 professionally qualified and well trained Agriculture Credit Officers,
fully conversant with latest farming procedures and practices and well
versed in customs, norms, social ethos and aspirations of our tillers.
Through our team, we are actively involved in disseminating information,
imparting knowledge and rendering practical assistance at the level of
every individual customer.
We posess the scientific wherewithal to encourage farmers to invest in
state of the art equipment, tools and implements etc. in the Dairy sector,
especially in the wake of ever rising demand for Dairy Products. We
enBOPe our customers to achieve even greater productivity by enBOPing
enhanced milking capacity, quality assurance, proper preservation and
secure storage, as well as transportation to processing facilities. We have
also recently launched Livestock Development initiatives, while our
scheme for Fish Farming too has gained great popularity and success.
Page 39 of 105
Re
tail Finance
RFD is catering needs of individual customers by offering them a mix of

consumer products as well as of commercial/SMEs clients through its
carvan fleet financing product. RFD has designed its innovative Products
to meet customers’ needs & provide state of the art services through
dedicated Consumer Financing Centers (CFCs) present across Pakistan.
Moreover, we are pioneer bank in solar financing and we are offering
customized solutions on very reasonBOPe rates to various market
segments.
RFD is also playing active role in supporting GOPb’s vision of providing

employment opportunities & sheltering to masses of Punjab through
Yellow Cab, Apna Rozgar Scheme & Ashiana Housing Finance Schemes.
The activities are focused on achievement of desired objectives on

following RFD core functions;
 Manager Business Development, marketing, promotion,

Processing and collection & recovery of following products
oAdvance Salary loan
oBOP Solar
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oCar Lease-Cargar
oApna Ghar House Financing
oCarvaan Fleet Financing
oYellow Cab Scheme
oAshaiana Housing Scheme
oApna Rozgar Scheme
Wholesale Banking
The Bank of Punjab has recently created a new segment of “Wholesale

Banking (WB)” targeted at providing seamless banking services to its
Commercial and Corporate clients by sharing maximum value with its
relationships and to ensure improved services under one roof. In order to
take the bank one step further, 10 branches have been dedicated for this
Division. The Corporate & Investment Banking Group and Commercial
Banking Group have been replaced by two new units namely, Wholesale
Banking-I (Karachi, Sialkot, Multan, Gujranwala, Faisalabad & Jhang) and
Wholesale Banking-II (Lahore, Rawalpindi, Islamabad,). The proposed
change is expected to bolster relationships with our valued customers.
Services being offered through these 10 branches include origination &
sales of banking products that meet the expectations of its ever growing
client base. Dedicated teams of Relationship Managers ensure the delivery
of our entire range of financial products and services to our clients and
provide tailored financial solutions to the customers with respect to their
business needs.
Apart from regular branch banking offered at these 10 branches, the
following products are also being offered:
 Project Finance
 Debt Syndications and Consortium Financing
 Corporate Finance
 Long Term/Demand Finance
 Working Capital Finance
 Letter of Credit, Contracts and Export collection services
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 FE Loans, Pre and Post Shipment Export Financing
 Import Financing
 Bills Discounting
 Letter of Guarantees
 Cash Management Services and etc.
 General Banking of the Bank of Punjab
ACCOUNTS OPENING DEPARTMENT
Accounts opening department is one of the departments that come under

the general banking facilities provided by The Bank of Punjab. Account
opening is the first step towards establishing a relationship between the
customer and the bank.
 Major Responsibilities of Account Opening Department
Account Opening
The person would like to open his account is required to meet with the
manager or second officer, who will give him an Application form
specifically used for account opening. Along with the form a card for
specimen signature is also supplied to the customer. Manager has every
right not to accept this contract if he is not satisfied with the details
provided by the customer. But in case the contract is acceptBOPe to both,
the next step is official account opening.
The Bank of Punjab is offering basically two types of account:

 Current Deposit Account
 Profit and Loss Sharing Account
Page 42 of 105
1. Current Deposit Account
Current account is a running account that is continuously in operation, by

the customers on all the working days of the bank. Customers can
withdraw the amount from the bank without prior notice. Bankers usually
don’t pay interest on these deposits as they can withdraw without notice.
These accounts are of various types:
 Individual Account
 Joint Account
 Proprietorship account
 Partnership Account
 Joint Stock Company Account
 Clubs, Society, Association or Trust Account
Individual’s Accounts
When a single man or women opens an account in his or her own name
and has a right to operate, that account is called as individual account
Documentation:
For opening an individual accounts following documents are required:
 Copy of CNIC
 Source of fund
 Proper identification (introduction)
 Two passport size photographs (if required)
 Copy of CNIC of next to kin
Joint Account
When two or more persons neither partners, nor trustees, open an

account called as joint account
Documentation:
For opening a joint account following documents are required:
 Copy of CNIC of both the partners
 Source of fund
 Two passport size photographs of both the partners (if required)
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 Copy of CNIC of next to kin
Proprietorship Account
Proprietorship account is concern with the business operated by one

person who is the proprietor of the business concern however he can
nominate his any representative to operate the account on his behalf.
Authority letter to this effect obtained by the account holder.
Documentation:
For opening a proprietorship accounts following documents are required:
 Copy of CNIC/Passport copy
 Copy of Certificate of Registration of firm with some Govt./semi
Govt/Trade organization/professional body etc.
 Request letter on company’s letter head
 Copy of sole proprietorship declaration to be signed in a personal
capacity.
 Sole Proprietorship stamp
Partnership Account
Partnership account is opened by partners of the firm who some times

authorize one of the partners or managing partner of the firm.
This account is opened on provision of partnership deed which can be
registered as well as unregistered. A letter of partnership deed is also
being obtained for opening an account signed by all partners.
Documentation:
For opening a partnership accounts following documents are required:
 Copy of CNIC/Passport copy of all partners
 Status of the firm (in case of registered firm)
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 Attested copy of partnership deed (in case of registered firm) duly
signed by all partners of the firm
 Stamp of partnership firm.
 Attested copy of Certificate of Registration of firm issued by
Registrar of the firm.
 If firm is unregistered clearly written UNREISTERED on AOF
 Letter showing the authority of one or more partners to act on
Joint Stock Company Account
Documentation:
For opening a joint stock company accounts following documents are
required:
 Certified copy of Resolution of board of directors
 Certified copy of Memorandum of association
 Certified copy of Article of association
 Certified copy of Certificate of incorporation
 Form 29(B) (lasted copy)
 List of directors with address, signatures, and CNIC
 Authorized person to operate the account
 Undertaking that in case of any changes they will have to inform the
bank and the chairman signatures undertaking
2. Saving Accounts
These types of accounts are for those persons who want to make small
savings. Saving accounts are of various types.
1. Individual account
2. Joint account
3. Either or survivor account
4. Resident or non-resident
5. With occupation
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6. With application of zakat
Account Closing
When a person wants to close his account because of any reason, he has
to give a hand written application to the head of the operations
department to close his account, plus remaining leaves of cheque book.
The operation manager first verifies the signatures of account holder, and
then closing is done form register on the computer where the account was
opened. In the file of account holder, his account opening form is also
crossed and all the remaining checques in a checque book are canceled.
Dormant Account
When any customer does not operate his account for 6 months, then
computer, automatically, includes that account holder in inactive account.
This is dormant account. Now account holder cannot operate his account.
Bank informs him that your account is now inactive.
Cheque Book Issuance

When the account is opened, then, a cheque book is issued to the
customer so that he can withdraw his money whenever he wants during
banking hours.
Procedure
All the account opening formalities must be completed before, issuance of

cheque book. Particulars of the cheque book requisition should be
completed containing title of account, account number, type of currency,
number of leaves and signatures of the customer.
If customer is unable to collect his cheque book, then he can give

authority to the third person to collect his cheque book on his behalf by
signing on the back of the requisition. in such case the particulars of the
Page 46 of 105
third party are required like name of the person, CNIC number and
signature of that person on requisition and cheque book issuance register.
Cheque book is taken out from the safe. Particulars are entered in the
cheque book issuance register. It is assured that account number and
cheque number are printed on every leaf of the cheque book and those
leaves are counted, Name of the account holder is written on the cover of
the cheque book and the requisition on the cheque book for further
issuance is properly filled stamped and signed by the officer of the bank.
Cheque book is delivered to the customer and his signatures

are taken into the cheque book issuance register. Cheque
serial number is entered in the system. Stock of cheque
books are balanced at the end of each day. Terms &
Conditions
Terms and Conditions for Opening of an Account:
The following words and expressions shall, unless the context otherwise
so requires, have the following meanings:
a) Account means basic banking, savings or current (Pakistani Rupee
or foreign currency) account(s) maintained by the customer with the
Bank.
b) Account Opening Form means the form prescribed by the Bank,
as modified or amended from time to time, which is to be completed
by the customer for opening an account.
c) ATM Services means services offered by the Bank to the account
holders as per the ATM Terms and Conditions prescribed by the Bank
from time to time.
d) Business means business, transactions and products approved by
the Shariah Advisor, for the purpose of making investments from
funds availBOPe in the pool(s).
e) Business Day means a day when the relevant branch of the Bank
is open to conduct banking business and any day not specified as non-
business day for banks by SBP.
f) Business Income means total income of a pool from Business (es)
for a given period.
g) Customer means any individual person, firm, company or any
other association or organization, maintaining an account with the
Bank, and includes (where appropriate) any person authorized by the
Page 47 of 105
customer to give instructions on customer’s behalf in relation to
customer’s account.
h) Direct Expenses means all direct costs and expenses attributable
to a pool in relation to a Business for the purpose of deriving Business
Income.
i) Hiba means a part of profit that is due to the Bank, which the Bank
may relinquish, on the date of distribution, in favor of depositors.
j) Internet Banking Service means the service to be provided by the
Bank, which would enable the customer to obtain information from
and give instructions to the Bank by logging-on to the Bank’s Website.
k) Internet Banking ID means the unique identifier which is issued
to the customer by the Bank, and which would enable the customer to
access the Internet Banking Service.
l) Investment Risk Reserve (IRR) means the amount appropriated
by the Bank out of the income of investment account holders, after
allocating the Mudarib share on the basis of Tabarru, in order to cater
against future losses for investment account holders.
m) Loss / Net loss means loss of respective Pool(s) after charging all
direct expenses and write offs (if any), which shall be calculated on an
accrual basis and in conformity with the generally accepted
accounting principles applied on a consistent basis.
n) Mudaraba means a form of partnership where one party provides
the funds while the other provides expertise and management. Any
profits accrued are shared between the two parties on a pre-agreed
basis, while loss is borne by the provider of the capital.
o) Mudarib means the party in a Mudaraba agreement that provides
the expertise and management for managing the funds of the person
who provides the funds.
p) Musharaka means a relationship established under a contract by
the mutual consent of the parties for sharing of profits and losses in
the joint business. It is an agreement under which the Bank provides
funds which are mixed with the funds of the business enterprise and
others. All providers of capital are entitled to participate in
management, but not necessarily required to do so. The profit is
distributed among the partners in pre-agreed ratios, while the loss is
borne by each partner strictly in proportion to respective capital
contributions.
q) Password means an alphabetical and / or numeric code initially
assigned to the customer by the Bank and includes any other code as
may be subsequently adopted by the customer for accessing the
Bank’s Internet Banking Service.
r) PIN means Personal Identification Number initially assigned by the
Bank at the time of issuance of ATM Card and includes such other
code as may be subsequently adopted by the customer for accessing
the Bank’s ATM Services.
Page 48 of 105
s) Profit Equalization Reserves (PER) means the amount
appropriated by the Bank, from net income of the pool on the basis of
Tabarru, in order to maintain a certain level of return in investment for
investment account holders and increase owners’ equity.
t) Profit / Net profit means profit of respective Pool(s) after charging
all direct expenses and write offs (if any), which shall be calculated on
an accrual basis and in conformity with the generally accepted
accounting principles applied on a consistent basis.
u) Rab-ul-Mal meansthe party in a Mudaraba agreement that
provides the funds and accordingly shares the accrued profit with the
Mudarib on a pre-agreed basis and solely bears the loss (if any) faced
by the Mudaraba.
v) SBP means the State Bank of Pakistan, established under the State
Bank of Pakistan Act, 1956, and includes it successors in- interest.
w) The Bank means BOP – Islamic Banking Division having its
principal office at 10-B, Block II Main Boulevard, Gulberg III, Lahore
Pakistan.
x) The Bank’s Website mean BOP’s website at www.bop.com.pk as
modified and / or re-designed from time to time.
y) The Terms or "These Terms" means these and any
supplementary terms and conditions, as amended from time to time.
2. Opening an Account
The Account shall be opened upon submission of duly filled-in Bank's
prescribed Account Opening Form properly in the manner provided and on
submitting all such documents and information as may be requested by
the Bank. Further, the Bank reserves the right to demand such relevant
documents and information even after opening of account as deemed
necessary. In the event of failure of the Customer to provide such
documents and information, the Bank may, at its sole discretion withhold
operations of the Account or close such Account.
The Bank will not refuse opening of account for prospective clients who
meet the requirements laid down in the Prudential Regulations, other
instructions issued by SBP from time to time and Bank's own policies.
The Account shall be opened with an initial / minimum deposit as
stipulated by the Bank from time to time unless specifically relaxed /
exempted by SBP.
A distinctive number will be allotted to every account and this number
should be quoted in all correspondence relating to the account and at the
time of making a deposit or withdrawal. The Bank reserves the right to
change the Account Number or any part of it in order to meet its book
keeping / administration requirement. However, intimation of change in
the account number shall be sent to the account holder.
The Accounts may be opened singly in one name or jointly in two or more
names.
Page 49 of 105
3. Minor Account
Deposit may be accepted from minors provided the account is opened
and operated through a guardian.
The Account thus opened will continue to be operated upon by the
guardian even if the minor attains the age of majority. The necessary
consent to this effect will be obtained at the time of opening of the
account. The orders of the court will, however, be followed in case the
guardian is appointed by the court.
4. Joint Accounts
If an account is opened in the names of two or more persons, the balance
to the credit of that account and any accruals thereon shall at all times
belong to the persons who are signatories to the account opening form.
Such persons shall also be jointly and severally liable for all liabilities
incurred in relation to the account and the services.
The customer authorizes the Bank to pay or deliver to either or
survivor(s) of the person(s) in whose names the account has been
opened, or the legal representative(s) of such survivor(s), any monies,
securities or properties standing to the credit of the joint account or held
by the Bank.
In the case of joint accounts, following further provisions shall also apply:
a) Each of the signatory to the account shall be deemed to have
authorized and empowered the other signatories:
i) to endorse and deposit for credit to such account, any and all
cheques, drafts, notes or other instruments or the payment of
money, payable or purporting to belong to other person(s) named
in the account, and should any such instrument(s) be received by
the Bank without being so endorsed, the Bank is authorized in the
absence of any specific instruction to the contrary, to endorse the
same on customer's behalf and deposit it to the credit of such
account; and
ii) To issue any cheques, drafts, notes or other instruments that
may be drawn against such account.
b) If prior to acting on instructions received from a signatory, where a
joint account is operated on the basis of either or survivor of the
signatories, the Bank receives contradictory instructions from any joint
account holder(s), then the Bank may, at its absolute discretion,
choose to act on the instructions of all the signatories,
notwithstanding that any relevant existing mandate or instructions
require otherwise.
c) In the event the Bank receives conflicting instructions from the
signatories to a joint account, the Bank shall be entitled to suspend
the operation of such account, without any prior notice.
In the event of a death of any one or more of the account holders having
operational instructions, in the case where the credit balance in a joint
account is payable either to any one or more of the account holders or
Page 50 of 105
survivors of them; in the absence of a contract to the contrary, the credit
balance will become payable to the survivor(s) without reference to the
legal heirs of the deceased person or persons. In all other cases, the credit
balance will be payable to the legal heirs of the deceased account
holder(s) along with the remaining account holder(s) as per bank's
procedure.
5. Cheque Books
Applications for issuance of Cheque Books should be made on prescribed
requisition slips and thereafter for further issuance of Cheque Books on
the requisition slip inserted in the Cheque Book already issued.
Where a person is sent to take delivery of a Cheque Book on behalf of the
account holder, such person must be in possession of a written authority
form the account holder to do so as well as a Cheque Book requisition slip.
The account holders in their own interest and to reduce the risk of fraud
are requested to keep their Cheque Books under lock & key and to ensure
that their Cheque Books do not get into unauthorized hands. In case of
loss or theft of Cheque book, if the customer reports the concerned
Branch before payment, he will not be liable for any loss or damages.
However, in any case, bank is liable to observe due diligence in good faith.
Loss of Cheque leaves or Cheque Book or the Cheque Book Requisition
Slip should be immediately notified by the Account holder to the Bank in
writing.
If the Cheque book is not collected within sixty (60) days of the issuance,
it will be destroyed by the bank at customer's cost.
Cheques or other negotiable instruments deposited by the customer that
have been dishonored may be returned by post or special messenger to
the customer at his last known mailing address with the Bank at the risk
and expense of the customer concerned, unless prior arrangement
otherwise has been made for its collection.
6. Statement of Account
The statement of account will be dispatched to the account holder at
periodical intervals, as per frequency stipulated by SBP, and charges as
per rules set by SBP.
The statement of accounts will be sent in following manner:
a) Where closing balance in an account, as on 30 June and 31
December, is less than 10,000/- free of charge statement of account
will be dispatched at least once in a calendar year within one month
from the close of calendar year (i.e., by 31st January). Statement of
accounts for balances less than 10,000/-, which is dispatched through
regular post, customers may notify any discrepancies in statement of
account within 45 days from the date of issue, after which Bank's
statement will be considered final.
Where closing balance in an account, as on 30 June or 31 December,
is greater than or equal to 10,000/-, free of charge statement of
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account will be dispatched twice in a year on, six monthly bases,
within one month from the close of half year (i.e., June 30 and
December 31).
However, no statement of account shall be dispatched to dormant /
inoperative accounts during the period of dormancy / in-operation till such
time accounts are reactivated. However, statements to all such accounts
shall be dispatched on due dates, starting from the period preceding or
equal to the date account was flagged dormant.
The Bank will take care to see that credit and debit entries are correctly
recorded in all accounts but in case of any error, the Bank shall be within
its right to make the correct / adjusting entries and recover any amount
wrongly paid or credited and inform the account holder subsequently. The
Bank shall not be liBOPe for any loss or damage to the account holder due
to such errors or corrections thereof.
Duplicate copies of statement of accounts shall be provided by the Bank
by debiting the customers’ account as per the schedule of charges.
7. Deposits
All monies / instruments to be deposited in an account should be
accompanied by a pay-in-slip showing the title and number of the
account. The entry of transaction shall be authenticated by putting Bank's
stamp under the joint signatures of two officers of the Bank on the pay-in-
slip and counterfoil thereof. The depositor should satisfy himself / herself
that the transaction has been so verified on the counterfoil.
All cheques to be deposited for credit to the account should be payable to
the account holder and be "crossed" before deposit. Also particulars of the
cheques (name of the Drawee Bank, Cheque number etc.) should be
correctly written both on pay-in-slip and the counterfoil thereof. The Bank
shall not be responsible in case of any loss where the above requirements
are not complied. In case of delay or loss occasioned in collection of
cheques, the bank will follow-up with the concerned for swift resolution.
Remittance received through mail will be acknowledged by return post.
An account holder who does not receive such acknowledgement should
communicate with the Bank immediately.
8. Withdrawals
Withdrawals from the account can be made only by means of Cheque
supplied by the Bank in printed form or any other mode approved by the
Bank. Cheque should be written in un-vanish able / un-erasable ink and be
signed as per specimen signature(s) supplied to the Bank and any
alterations in the instrument must be authenticated by the drawer(s)
under his / her / their full signature(s) as the case may be.
Illiterate customers will not be liable for cuttings and alterations on
cheques unless duly authenticated.
The credit balance in an account in the name of two or more persons will
be payable as per Operational instructions given / signed by all the
Page 52 of 105
account holders in Account Opening Form. However, the possible cases
can be as under:
a) Either or any one or more of them or the survivors of them; or
b) All of them.
Withdrawals will not be allowed against postdated (payable on any future
date) and stale (06 months after issuance date) cheques and against un-
cleared funds.
If payments from an account are at any time forbidden by any one or
more of the account holders, the amount will only be payable on the
discharge of all the account holders or the survivor or survivors of them.
9. Dormant Account
All depository accounts like current / savings / BBA etc. which remain non
operative for a period of six months in case of current and BBA account
and for a period of one year in case of saving account, will be classified as
dormant accounts.
In case of:
a) Current / BBA account, after passing one and half year in dormant
status, if there is still no operation in the account for continuous period of
two years; the account shall be classified as inoperative.
b) Saving account after passing two years in dormant status, if there is
still no operation in the account for continuous period of three years;
the account shall be classified as inoperative.
This entails certain restrictions on the operation of such accounts and for
reactivation, the account holder must in person request for a change of
status and will produce original CNIC or Passport or Pakistan Origin Card
(POC) or National Identity Card for Overseas Pakistani (NICOP) and Photo
copy for Branch / Bank attestation.
After passing further 8 years in inoperative status, in current / BBA
account and 7 years in inoperative status, in saving accounts i.e., if an
account is not operated upon by a customer for a continuous period of ten
years; it will be classified as unclaimed deposit account and will be
surrendered to SBP as per the provisions of Section 31 of the Banking
Companies Ordinance 1962.
10. Closing of Account

The Bank may at its sole and absolute discretion close any account,
which is not being operated in a manner satisfactory to the Bank or for
any other reason whatsoever, with or without any prior notice to the
customer. The Bank also reserves the right to terminate, at the Bank’s
sole discretion, any other type of relationship(s) with the customer, e.g.
lockers, safe custody, relationship cards, etc. at any time without
assigning any reason.
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In case the account is closed the balance will be remitted to the depositor
at the address given by the account holder(s).
Upon closure of an account, the customer must return to the Bank any
unused cheques relating to customer’s account. Alternatively, the
customer must confirm in writing to the Bank’s satisfaction that the
unused cheques have been destroyed.
The Account Holder(s) wishing to close the account must withdraw the
outstanding balance, if any, after depositing account closing charges as
stipulated by the Bank.
. All accounts where there is no customer's initiated operation since two
years and have nil balances, shall be closed by the bank without giving
any notice.
11. Death / Bankruptcy of Account Holder(s)

In case of death / bankruptcy, the Bank will stop operation in the account
immediately, after the receipt of official notice or as and when become
aware of it from any other reliable source.
In the event of a death of any one or more of the account holders of Joint
account:
a) In case the credit balance in an account in the name of two or more
persons, will be payable to either or any one or more of account
holders or the survivors of the account holders, as instructed by all the
account holders in Account Opening Form (as per Operational
instructions), and in the absence of a contract to the contrary, the
credit balance will become payable to the survivor(s) without
reference to the legal heirs of the deceased person or persons.
b) In all other cases, the credit balance will be payable to the legal
heirs of the deceased account holder(s) along with the remaining
account holder(s) as per bank's procedure.
12. Current Account

Current Account is opened on the basis of Qard Hasna and offers the
account holder the flexibility to withdraw funds from time to time at his /
her convenience.
The depositors shall be made aware that no profit shall be payable on
Current Account. The deposits received by the Bank under Current
Account can be used by the Bank as its equity at its sole discretion for its
business purposes including investments and financings under Shariah
compliant modes in any manner the Bank considers appropriate after
approval of its Shariah Advisor.
13. Basic Banking Account (Current Account)
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The minimum initial deposit for this type of account will be Rs. 1,000/ or
as per amount prescribed by SBP.
The account will be non remunerative account, i.e. no profit shall be paid
on the deposit in Basic Banking Account (BBA).
No limit on minimum balance. In cases, where balance in BBA remains
'nil' for a continuous six month period, such accounts will be closed.
No fee will be charged for maintaining BBA.
Free of charge ATM withdrawals from the bank's own ATMs. In case of
withdrawal from BBA through the ATM machines of other banks, bank shall
recover charges as per schedule of charges.
Statement of account will be issued once in a year, duplicate copies of
the statements of accounts will be provided on request upon payment of
relevant charges.
14. Profit and Loss Sharing Savings Account & Riba Free
Certificates
The relationship between the Bank and customers holding savings and /
or Riba Free Certificate (RFC) shall be based on the principles of
Mudaraba, where the Bank shall be Mudarib and customers shall be Rab-
ul-Maal. Further, the relationship is based on unrestricted Mudaraba
arrangement.
Funds deposited by the customer in saving and / or RFC shall be collected
in pool(s) of funds. The Bank may, at its sole discretion, commingle
customer’s funds with that of the other depositors in the pool and / or with
the funds of the Bank.
The funds in such pool(s) shall, at the Bank’s sole discretion, be deployed
in Shariah compliant modes such as Murabaha, Ijarah, Musharaka or any
other Islamic modes of financing and or investment.
The updated and prevailing Mudarib share and Profit Weightages
applicable to Savings Account and other investors in the Mudaraba pool
will be available at the Bank’s website, displayed in the Bank’s branches,
may be obtained from the Bank from time to time and/or shall be
communicated to the Customer in any other mode, whether electronic or
otherwise, in accordance with the Bank’s prevailing practice.
Shares of Profit / Losses for each calendar month shall be determined
under the policies as mentioned in section 15 below and credited to the
customers’ account within eight (8) working days after end of each period,
for the preceding profit allocation period or on such dates or intervals
which the Bank may determine and calculate as per policy in vogue.
The Customer will not participate in the management or in decisions
concerning investment of the Mudaraba funds and by signing this contract
investor understands that investor has given unrestricted right to Bank /
Mudarib to invest these funds.
In addition to the above:
a) PLS Savings Accounts may also be opened by charitable institutions
for Provident Funds and other funds of benevolent nature by Local
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Bodies, Autonomous Corporations, Companies, Associations, Societies,
Educational Institutions, Firms etc. and in all other cases where such
accounts are required to be opened under the orders of Competent
Court of Law; and
b) Not more than one PLS Savings Account may be opened at a branch
in any one name except in the name of a parent or guardian for more
than one child or for keeping funds of specified nature category by an
entity, with the Bank's prior approval.
15. Distribution of Profit & Loss

In case, where the Bank’s equity is comingled with the customer’s fund in
a pool; the Net Income / loss of pool would be allocated between the
Bank’s equity and customer’s fund in proportion to the respective share in
pool.
Profit and loss on the Mudaraba based deposits would be computed and
distributed on the basis of average daily balance in customer’s account
during the profit computation period.
At the end of each calendar month; Bank and the pool members shall
share Profit or Loss accruing from Business(es) after deducting all direct
expenses pertaining to the Mudaraba at actual in the following manner:
a) The Bank’s share in the Profit, in the capacity of Mudarib, would be
admissible only on profit allocated to depositors’ funds from the pool’s
net income and would be determined on the basis of a predetermined
percentage, capped at a maximum of 50% of the profit allocated to
depositors’ funds from the pool’s net income. The said percentage
shall be determined by the Bank before the beginning of each period
and made available for the customer’s information on the Bank’s
Website and on notice boards in the Head Office and branches. Loss, if
any, shall be distributed amongst pool members under the principles
of Mudaraba on the basis of pool members’ ratio of investment.
b) Balance of profit after deducting the Bank’s share determined under
clause (a) above; shall be distributed amongst the pool members on
the basis of predetermined weightages. Losses, if any, shall be
distributed amongst the pool members under the principles of
Mudaraba on the basis of pool members’ ratio of investment.
c) In case of loss has been incurred by the Business and was caused
by the gross negligence or willful default of the Bank, the Customer
will not be liable to share in such a loss as contemplated by clause
15.3 (c) above.
For the purpose of smoothening of profit the bank may create Profit
Equalization Reserve (PER) or give Hiba to depositors by reduction of its
share of profit sharing ratio.
16. PER, IRR and other provisions

PER, IRR and other provisions may be created, maintained and utilized as
follows:
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a) The Bank may at its sole discretion as per SBP rules, in order to
maintain a certain level of return on investment of depositors, provide
for a PER, after approval of the Shariah Advisor, an amount from the
net income of the pool.
b) The Bank may fully or partly utilize the amount of PER to improve
the returns to the depositors during periods when the pool’s profits are
below market expectations.
c) Only existing depositors will qualify for share in PER. As such, the
depositor agrees that he / she / it shall not have any right to claim the
share in PER (if any) after the withdrawal of the deposit.
d) PER will be created on the basis of Tabarru from pool contributors.
e) Ratio of PER will be displayed on the notice board of the Branches
before start of the relevant period.
Hiba, may be provided to depositors by the Bank through reduction its
profit, for the following purpose:
a) In order to account for displaced commercial risk, the Bank in the
capacity of Mudarib may relinquish a part of the profit that is due to
the Bank, in the favor of depositors, only after the balance in the PER
is fully utilized.
The Bank may at its sole discretion as per SBP rules, in order to mitigate
risk of future losses to investment depositors, provide for an Investment
Risk Reserve (IRR), after approval of the Shariah Advisor, an amount from
the depositors profit i.e. distributable profit net of mudarib share.
IRR will be created on the basis of Tabarru from pool contributors.
Only existing depositors will qualify for share in IRR. As such, the
depositor agrees that he / she / it do not have any right to claim the share
in IRR (if any) after the withdrawal of the deposit.
Allocated but unpaid profits which are not reinvested as per the mutual
agreement will be recognized as liability of the Bank.
5% of all dividend and capital gain on shares income shall be transferred
to Dividend Income provisioning and Capital Gain/Loss provisioning
respectively at the time of liquidation of the pool, part of the provisioning
corresponding to interest income of the company’s total income during
that period as declared in published accounts (whether audited or
unaudited) shall be paid in charity and remaining income, if any shall be
reversed so as to become part of net income of the pool. The remaining
portion thus reversed shall be based on Tabarru from the pool contributors
at the time of creation of such provisioning.
16.8. Clauses pertaining to calculation and distribution of Profit / Losses in
this document shall be in accordance with the prevailing laws of Pakistan
and the applicBOPe rules and regulations issued by the State Bank of
Pakistan from time to time that are not in contradiction with the rules and
principles of Shariah and the profit and loss distribution policy framework
approved by the Shariah Advisor and the Board of Directors of the Bank.
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17. Profit on Closing / Withdrawal of Deposits from Saving
Account
 In the event that the entire deposit in a Saving Account is withdrawn
at a time during the month when the Mudaraba profits for that profit
calculation period cannot be ascertained, the profit amount in such
case shall be calculated using the profit rate applicable for the
immediately preceding profit calculation period and paid to the
customer as soon as possible following which the account will stand
closed.
 This payment of profit will be based on the principle of
Takharuj i.e. such allocation and payment to the customer shall be in
full and final discharge of Bank’s obligations to the customer and no
further claim whatsoever shall be made or entertained.
 In consideration of receiving the profit amount calculated using the
profit rate for the immediately preceding profit calculation period,
the customer agrees to waive any right he / she / it may have to
receive the profit amount calculated in accordance with the profit
rate for the then applicable profit calculation period and agrees that
any such profit amount shall be applied to the benefit of the
remaining account holders, and the date such amount or amounts
are paid shall be the profit payment date for that account.
18. Foreign Currency Accounts

Foreign Currency current and saving accounts may be established in US
Dollars and / or such other currencies as may be determined by the Bank,
as allowed by relevant regulations in force from time to time.
The Terms and Conditions contained in clause 15 herein above applicable
to saving account shall also apply to Foreign Currency saving accounts.
No profit is paid on any current account balance in respect of Foreign
Currency accounts.
Foreign Currency accounts, both current and saving are opened and
maintained subject to Foreign Exchange Control regulations and directives
of the Government of Pakistan, or any of its organs / agencies and the SBP
from time to time.
19. Indemnity and Liability

The Bank shall use its best endeavors to provide smooth and efficient
services to the customers. Notwithstanding the same, the customer
hereby agree and confirm to hold the Bank and its officers, directors,
employees and representatives, agents and contractors, completely
harmless and indemnified, from and against any and all costs, losses,
damages, liabilities, payments and obligations and expenses (including
but not limited to reasonBOPe legal costs) incurred, suffered, sustained,
paid or imposed upon the Bank, arising out of, inter alia:
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a) Bank acting upon the customer’s written or verbal instructions to
stop payment, hold mail and / or to act on any other instructions,
including standing instructions issued by the customer to the Bank
from time to time.
b) Any claim by the customer or any third party concerning the
amount, transfer, delivery or non-delivery of any product requested
through any of the Bank’s services or any other matter relating to the
services.
c) Any action taken by the Bank in reliance upon customer’s
instructions which are:
i) revealed to be unauthentic, unauthorized or erroneous; and / or
ii) discovered to be fraudulent.
d) Any taxes or other levies paid or due to be paid by the Bank on
payments made or to be made by the customer, through or pursuant
to the Bank’s services.
e) Customer’s act, omission, error, neglect, or default or those of the
customer’s employees, agents, correspondent or participating bank or
of their employees and agents.
f) Subject to these Terms, any amendment to or variation in
customer’s instructions.
g) For any instruction not complied with, due to reasons beyond the
Bank’s reasonable control.
h) Any loss arising out of unauthorized or fraudulent access to the
customer’s account caused as a result of customer’s negligence or
failure to take reasonable care.
i) Loss or theft of cheque book or the ATM Card.
The customer acknowledges that nothing in these Terms and Conditions
shall be construed as being a warranty or a representation by the Bank of
any guaranteed profits in respect of funds mobilized on the basis of
Mudaraba.
19.3. The customer is aware that all deposits in the Mudaraba pool are
exposed to potential losses arising out of a loss incurred in respects of
assets in the Mudaraba pool. Any losses incurred by the Mudaraba pool in
a Profit Allocation Period shall be borne solely by the Customer (in the
capacity of Rab-ul-Maal). If however, the Bank has also invested its own
funds in the Mudaraba pool as Shareek then such losses shall be shared
between the Customer and the Bank proportionately in accordance with
the respective amounts invested by the Customer and the Bank.
20. ATM Services

The Bank may, at its sole discretion, and subject to applicable charges
issue ATM Card to the customer to access the ATM Service.
The ATM Service shall be subject to the ATM Terms and Conditions.
The customer will be responsible to keep itself fully informed and updated
with regard to ATM Terms and Conditions.
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In case of a joint account with either-or-survivor(s) operating instructions,
the ATM Card shall be issued only in the name of one signatory to the
account.
Miscellaneous
Zakat and Taxes
Zakat and Withholding Tax and / or other tax (es) levied from time to
time shall be deducted as per prevailing laws of Pakistan. All amounts
recovered by the Bank as additional amounts in relation to a Saving
Account shall be paid by the Bank into the Charity Fund.
ZAKAT is leviable on the assets as described in the Zakat & Ushr
Ordinance 1980 (as amended from time to time) on balances which
will fall within the definition of zakatable assets as notified by the
Government of Pakistan on Valuation date each year, provided
Declaration (original / attested photocopy) for exemption from
compulsory deduction of zakat is filed on the prescribed proforma (CZ-
50) in the prescribed manner one month preceding the valuation date
except in the case of newly opened accounts.
Charges and Expenses
Charges for services provided by the Bank shall be levied according to
the Schedule of Charges. Charges for transaction on foreign currency
accounts will be recovered in foreign currency only.
The Bank will not obtain any prior permission from the customer for
debiting customer’s account for any expenses, fees, commission,
profit, Zakat, tax, stamp duty, excise duty, etc. payable to the
Government (or what so ever) arising out of any dealing between the
Bank and the customer.
The Bank may, without any further express authorization from the
customer debit customer’s account maintained with the Bank for the
amount of any or all losses, claims, damages, expenses or other
amounts which the Bank may suffer, sustain or incur as a
consequence of acting upon any of the customer’s instructions.
Amendment in Rules
The Bank reserves to itself the right to amend, alter or add to any or
all of these Rules through an advertisement in a newspaper or by
means of a notice exhibited in the Bank’s premises as thirty (30) days
advance notice prior to such changes take effect there after such
amended, altered or additional Rules shall be deemed to be binding on
all concerned. However, in case of any dispute, matter should be
referred to SBP and the decision of SBP will be final and binding in that
case.
Legal
These Terms shall be solely governed by the substantive and
procedural laws of Pakistan. Courts all over Pakistan shall have
exclusive jurisdiction in respect of any dispute relating to any matter
contained herein.
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Stop Payments
All stop Payment instructions will be accepted in writing and signed by
the account holder(s).
Change of Address
Any change in the address of the account holder should immediately
be communicated to the Bank in writing so that any future
correspondence may be made to the new address. The post office and
the agents for delivery should be considered agents of the account.
Transfer of Account
An account may be transferred, on a written application by the
account holder, from one branch of the Bank to another on any
working day, free of charge without affecting the Profit / Loss position
account.
However, the account, holder shall be required to submit fresh
Account Opening Form and complete all necessary formalities for
opening of account at the Branch where his / her account has been
requested to be transferred.
Data Protection and Disclosure
The Bank shall make endeavors to preserve the secrecy of the account
of the customer. Nevertheless, the customer hereby expressly
authorizes the Bank to disclose the information if such is required by
any investigating agency, any government agency or such person as
the Bank feels that such disclosure is necessary.
Issuance of Statements
A statement of account is issued to all customers of the BOP. Now a day
these statements are sent on the request of the customer. By this
statement the customers get the information of their account. Usually,
the auditors of the big companies send letter for statements of company
or person account in order to know the detail of the account. Then bank
issues them the statements of account and takes charges for issuing such
statements.
B) CASH DEPARTMENT
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Cash department is the most important department of the bank. This is
sensitive department of the branch; no other person is allowed to enter in
the premises of cash department. It receives cash from the customers and
then deposits it into their accounts and maintained their balances.
Books Maintained by Cash Department:
Scroll Book:
When the cash is received at the counter it is recorded in the scroll book
Paying Cash Book:
Cashier makes entry in the paying cash book when cash is paid. The
amount is paid and cheque number is written on it.
Token Book:
When any cheque or any negotiable instrument is presented it is recorded

in the token book then token is issued. Token number, account number,
amount and cheque number is written on the token book.
Cash Balance Book:
Consolidated figure of receipt and payment cash is entered in cash

balance book.
 Functions Performed by Cash Department:
Cash department performs two main functions
 Cash Deposits
 Cash Payments
Cash Deposits:
Cash officer receives cash along with pay-in slip from the customer. He
checks if the deposit slip is properly filled up containing title of account,
account number, date and amount in words and figures. He also verifies
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signatures with specimen signature card. Detail on scroll book and cash
receipt voucher should be the same. Cash is received by the cash officer,
twice counted and matched with the deposit slip. The cash details are
written on the back of the deposit slip and are also entered in the scroll
book/ cash receiving register. Cash received stamp is affixed on the
deposit slip along with the signatures of the cash receiving officer. Deposit
slip is credited and posted in the concerned account in the system.
Payment of Cheque:
Customer presents the cheque to officer he first of all checks the balance
in the account of the customer then the date, amount in words and
amount in figures, payee’s name crossing if any, account number,cheque
serial number and signatures of the customer. Account is debited and then
the officer cancle the cheque. It is posted in the system and posting stamp
and transaction number is affixed on it. Cheque is handed over to the cash
officer for payment. One more signature on the back of the cheque to
match with the first one, and then cheque is payed to the payee. Cash
detail is written on the back of the cheque. Cash paid stamp is affixed on
the cheque. Entry is passed in the paying cash book.
If payment is of Rs. 50,000 the cashier can make it on its own. If the
amount is greater than Rs. 50,000 to Rs. 100,000 the cashier and officer
verify the cheque and sign it so, the payment will be made. But, if the
amount is greater than Rs. 100,000 to Rs. 1000,000 the operation
manager also verify the cheque and sign it so, the payment will be made.
If the payment is greater than Rs. 1000,000 the branch manager verify
the cheque and sign it, otherwise payment will not be made.
DEPOSITS DEPARTMENT
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Function of deposit department is to collect cash from the customers and
to deposit it into the accounts, maintained by them. Their classification is
based on the duration and purpose for which the account is maintained.
The bank does not receive these deposits for save keeping purpose only,
but they accept deposits as debts. When banks receive deposit from a
customer, the relationship of a debtor and creditor is established where by
the customer become the creditor and the bank a debtor. When the bank
receives amount of deposit as a debtor, it becomes the owner of it. It may,
therefore use it as deems appropriate. But there is an implicit agreement
that the amount owned would be paid back by the bank to the depositor
after a specified period.
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 they is lent out the greater of the profit margin of the bank.
Furthermore, the larger the deposit the larger will be the funds available
for employment; larger the funds lent out the greater will be the profit of
the bank.
Nature of Deposits
Following type of accounts are maintained for deposit purposes:
 Current Deposits
 Profit & Loss Sharing Accounts
 Term Deposits Account
 Foreign Currency Accounts
Current Deposits:
In this type of account the client is allowed to deposit or withdraw money

as and when he likes. Because of their nature, these deposits are treated
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as the current liabilities of the bank. There is not profit on such deposits.
Usually this type of account is opened by the business.
Profit & Loss Sharing Account:
This type of accounts is one step towards the Islamization of banking

system in Pakistan. There 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 for a sum of Rs. 1000 or above. Profit is
paid on both types of the PLS account on half yearly basis.
Under PLS saving account the depositor undertakes 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.
Term Deposits Account:
Fixed or time deposits are the major source of fund for commercial banks.
The rate of interest on fixed deposits is higher than that of saving deposits
and it varies time by time. The longer the period for which the amount is
kept the higher the rate of interest is. The holder of term deposit account
cannot issue cheques for the withdrawal of the amount.
The Bank of Punjab deals with two types of Term Deposit Accounts:
 Short Notice Term Deposits (SNTDs)

 Term Deposit Receipts (TDRs)
Short Notice Term Deposits (SNTD)
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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 facilitates the depositor to withdrawn his amount with
interest of the deposited period.
Term Deposit Receipts (TDR)
This type of deposit is same as the SNTD. The difference is that

SNTD is for short period (7- 30 days) while TDR is for long period (1 month
up to 5 years).
Foreign Currency Account:
These are the accounts in which deposits are accepted in foreign currency.
These deposits may be kept either in saving or in current foreign currency
account.
CLEARING DEPARTMENT
Clearing is the most important department of the bank .This department

receives the cheque and other negotiable instruments drawn on local
branches of other banks. State bank of Pakistan has clearing house, in
which cheque, and other negotiable instruments are brought by each local
bank representatives. Clearing settlement is made by debiting and
crediting the banker’s account, the daily difference in the clearing
between banks may considerable and many differences are adjusted by
means of debit and credit entries in the respective account. Clearing
system is help full for both the customer and saving currency, time and
labor.
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Clearing
Any instruments which drawn on BOP branches and other banks in same
city that’s instruments are called clearing. A clearing and date stamp is
affixed on these instruments.
These are two types of clearing:
 Inward Clearing (Paying Bank)

 Outward Clearing (Presenting Bank, Collecting Bank)
 Within Bank Clearing
INWARD CLEARING
Inward clearing means the cheques which are to be honored by the bank
but which are received through other banks representatives. These are
the cheque, which BOP account holder gives to such account holders who
have their accounts in other banks other than BOP. So those banks submit
their cheque books to NIFT.
NIFT (National Institutional Facilitation Technologies (Pvt) Ltd):

Now a days a specialized institution named as NIFT performs services of
clearing. Each bank collects the cheque on behalf of their customers of
other banks and hands over this cheque to NIFT. When NIFT collects the
cheque in the evening from every bank, then at night all cheques are
sorted according to their banks and then according to their branches.
Then cheques of one branch e.g. of BOP Gulshan-e-Ravi are kept in one
bag with the detail summary of cheques e.g.
number of cheques, total number of cheques and amount. This bag is

locked with the special plastic key.
Next day before bank starts its work at 9:00 am the NIFT representative
gives this bag to clearing department head and returns. Clearing
department head sorts these cheques according to PLS, CD, PO, D.D and
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counts that cheques number are equal to summary cheque number. Then
he checks that cheques are in order, clear writing, signature of account
holder, three stamps, amount in words and figures, date, no limitation,
and bank name.
If he finds any fault, he returns that cheque attaching memorandum,

which comprises of date, Cheque #, amount, Reason of returning. After all
this the bank officer enters these cheques in inward clearing register
regardless of returned cheques. Then these cheques total is matched with
NIFT summary.Then these cheques are entered in computer and debited
the accounts of those account holders who issued these cheques. In
posting when the officer finds that account holder has not sufficient fund
or signature are not verified by SSC then he returns these cheques with
memorandum.
After doing all these cheques are again kept in that bag which is locked
with special plastic key. With returning cheques a pink colour slip is
attached which has the title “Clearing Return”. After half an hour NIFT
representative comes back and takes this bag back and goes away. The
officer circles with red pen in register those cheques which are returned
and writes “R”.
OUTWARD CLEARING
Outward clearing means the collection of cheques on behalf of customers.

These cheques are those, which are drawn on other banks. This clearing
can be local or out station. When customer brings such cheque, he fills the
deposit slip. He keeps counterfoil and the remaining part is stapled with
the cheque.
The bank officer stamps the crossing stamp. He also stamps the clearing
stamp of next day and endorsement stamp. In this clearing the bank
receives the cheque whole day and enters those cheques in outward
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clearing register which has following columns: date of next day, Serial #,
Cheque #, Amount, Slip #, A/c # of Payee.
After this, these cheques are totaled and bundles of 50, 50 cheque are
made attaching a list which is named add list. Then two debit or credit
vouchers are made with title of suspense account and the total amount is
entered in these vouchers. Then these cheques are covered with clearing
slip issued by NIFT. And these cheques are kept in bag locked with key and
in evening NIFT representative comes and takes that bag and returns.
Within Bank Clearing
If the cheques are drawn on same bank or on other branches of this bank
then it is called clearing within bank. Such Cheques are marked with
transfer bank.
Functions of Clearing Department
 To accept transfer delivery and clearing cheques from customers of

the bank and to arrange for their collection.
 To arrange the payment of cheques drawn on the bank and given for
collection to any other branch of BOP or any other member or sub
member of local clearing house.
 To collect amount of cheques drawn on members, sub members of
the local clearing house, sent for collection by those BOP branches,
which are not represented at the local clearing house.
Types of Cheques Collected By Clearing Department
Transfer Cheques:
The cheques which are collected and paid by the same branch of BOP.
Stamps on Transfer Cheques:
 Transfer stamp
 Computer posted
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 Crossing/ Branch stamp
 Payee account credited
 Signature verified
Transfer Delivery Cheques:
The cheques which are collected and paid by two different branches of a
bank situated in the same city.
Clearing Cheques:
The collecting bank can receive the amount of cheques from the paying
bank from the clearing house on behalf of the customer’s account.
Stamps on Clearing Cheques:
 Crossing/ Branch stamp

 Payee account credited
 Signature verified
 Clearing stamp of next working day
REMITTANCE DEPARTMENT
Remittance is a major function of the bank. It is the transfer of money
from one place to another place or same person. By proving this service to
the customers the Bank of Punjab earns a lot of income in the form of
service charges.
The Bank of Punjab deals with the following type of remittances:-
 Pay Order (P.O)

 Demand Draft (D.D)
 Mail Transfer (M.T)
 Telegraphic Transfer (T.T)
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Pay Order (P.O):
Pay order is just like cash. It is an instrument, which is payable on demand

and only presentable within the city. Pay order is also called the banker’s
cheque, drawn upon the issuing branch itself. If someone wants to make
payment to some other person he can make payment through pay order
slip.
Importance of P.O
The main advantage of pay order is that it can not be dishonored by the
bank. When payment is required to make with in the city we can take this
service because in case of cheques there is a possibility of dishonoring by
the bank but pay order can never be dishonored.
Procedure of Pay Order:
An application form is given to the customer to fill. Two signatures are

taken on the form one for request and other for receiving the instrument.
All the particulars of application form are checked and bank commission
charges and withholding tax is written on the application form. If customer
is maintaining his account with the branch, he can give cheque for total
amount of instrument plus bank charges. Cheque and application form is
then given to the officer. Officer post the
cheque and sign the application form in case of payment received. If the
customer wants to pay cash, then cash is deposited by the customer
along with the bank charges and withholding tax.
Application form is then given to the officer for issuance of instrument. He

enters all the particulars of the application form in the system and
computer gives an auto control number to the instrument. Print out is
taken on the block of payment order. Two authorized officers of the branch
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then sign it. Instrument is then protectographed, and given to the
customer.
When instrument is presented for payment, it is posted in the system and

canceled by the remittances incharge after proper security.
Demand Draft (D.D):
Demand draft is an instrument given by one branch of a bank on behalf of

customer to another branch of the same bank to a certain amount to the
certain person. It is made by the bank, given to purchaser against cash or
cheque. If a person wants to make payment from one city to another then
he can make payment through D.D. bank charges commission for
performing it according to the schedule rate, which is revised after every 6
months.
Procedure of Demand Draft
1. A draft voucher is filled which contains the, name of the parties

involved, date, amount to be sent, account number (if D.D is
crossed).
2. A credit voucher is filled in order to get the excise duty and
exchange commission.
3. The sender deposits the total amount.
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 D.D leaf along with the D.D voucher to his
assistant who records the sender’s name, amount and receiver’s
name. After writing all the information in the D.D register he gives it
to the officer along with the D.D for authentication.
6. After authentication the D.D is handed over to the sender and bank
sends the advice to the concerned branch. So when the party
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presents the D.D in the concerned branch its payment could be
made.
Cancellation of D.D
In some cases the D.D is not presented for payment at the drawer bank
but it is presented for cancellation at the issuing branch. The payment of
such draft is to be made to the purchaser only and it is called payment by
cancellation. The drawer branch is also informed about the same to make
the entry in its book.
Parties involved in the Demand Draft
The following parties are involved in demand draft;
 Purchaser or Sender
The purchaser is the person who sends the money to a particular person
payable at a certain branch.
 Issuing or Branch
The branch from where the demand draft is issued to another branch of
the same bank.
 Drawer Branch
Branch in which the draft has drawn and called upon to pay the amount.
 Payee
The person who is entitled to receive the amount after presenting the
demand draft in the drawer branch.
Mail Transfer (MT):
It is the transfer of money from one branch to another branch of the same
bank through mail service. In mail transfer there is no need of advice as
the amount is directly credited to the receiver’s account.
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Procedure
1. First a voucher is filled in whish the sender writes the amount to be

sent, name, account number of the receiving person with the branch
name and date.
2. A credit voucher is filled in order to deduct exchange, postage
charges according to the amount of the mail transfer.
3. The sender deposits the total amount in the cash department.
4. The cash officer gives the vouchers to the officer after affixing
received cash stamp and writing the amount in red ink.
5. Then the officer writes the amount paid in the cash scroll and gives
the MT to his assistant.
6. MT leaf is filled according to the information provided in credit
voucher. He also writes the same information in the MT register. Then he
gives the MT leaf and MT register to the officer for authentication.
BILLS DEPARTMENT
This department deals in bills for collection for all kinds such as cheque,
draft, and pay orders, call deposits etc. with outstation branches of BOP or
with other banks. It provides service to their customer to get payment
from the nearer bank at nominal charges.
Types of bills:
There are two types of bills:
 Clean Bills
 Documentary Bills
Clean Bills
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These are negotiable instruments sent for collection on behalf of customer
i.e. cheques, drafts etc
Documentary Bills
These are the bills accompanied by documents such bill of lading, trust
receipt, railway receipt, sales invoice, receipts of courier service etc
having title on behalf of their customer. If payment is made other than
cheques then this mode is used. It is an agreement between two parties.
But in 99% cases clean bills are used
Types of bills for collection
There are two types of bills for collection:

 Outward Bill for Collection (OBC)
 Inward Bills for Collection (IBC)
Outward Bills for Collection
Cheques and other instruments drawn on other bank in other cities are
known as Outward Bills for Collection. Bills department receive cheque or
other of bills from its client whose account must be opened in that branch.
The checking officer of bills department will cross the cheque with special
bank stamp before forwarding the cheque. That branch receives payment
from the other bank and credits our branch and we credit our customer
a/c.
OBC register is also maintained for proper record keeping of outward bills.
This register is updated two times 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.
Inward Bills for Collection
Bank receives cheques, draft and other instruments for collection from
branches of other banks, which are not included in local clearing house
arrangements. They are Inward Bills for Collection. In it, instruments come
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and funds go out. Therefore it is unfavorable. The branches 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 with in 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.
Receiving Foreign Payments
Customer can receive its amount from UAE, Xpress money, Aftab money
exchange and western union.
CNIC Is Must For Payment:
 For payment original CNIC and copy of CNIC is required.

 On CNIC copy customer has to write: Pin code, Amount, and Contact
number
If CNIC is expired no payment is given to customer.
Procedure For UAE Express Money:
Requirement:
 Copy of CNIC of customer and original CNIC.

 16 digit code.
Step:
 Connect to www.expressmoney.com
 Click receive now
 Enter pin code
 Match data of customer
 Take print of verisys of customer and payment receipt
 Attach ID card copy
 Take signature of customer on payment receipt
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 Put stamp of signature verified and original CNIC stamp on copy of
CNIC
 Enter the amount in system module 30789 and send that voucher to
print and transaction number is given by system is written on
payment receipt.
 Debit voucher is authenticated and sign by the officer dealing with
the whole procedure. If transaction is 2 million or more then it is
authenticated by Operation Manager.
 Two signatures of customer are taken on back of voucher then
customer take its payment from cash counter.
At the end of day entry of payment which is already entered in system the
advice of all payment is printed and has signature of operation manager
and head of outward and foreign payment dept.
ACCOUNT DEPARTMENT
Account department is the backbone of a bank. It plays a vital in

performing different functions of a bank. Accounting books of different
departments are maintained under this department and with the help of
these, accountant prepare the monthly quarterly, semiannually and yearly
financial statement and order statement of the whole bank. All the
transaction taking place is recorded daily in the books of accounts and in
computerized ledgers.
For every transaction there is Voucher prepared and through these

vouchers contra entries are passed under different head. Good working of
accounts mainly depends on the voucher system. Accounts department is
responsible for proper handling and maintenance of vouchers of different
department
Functions of Clearing Department
Accounts department performs the following functions
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Reports
It generates reports like Statement of Account Activity (a report on the
activity of all accounts at Bank, Statement of Affairs (a report on the
assets and liabilities of Bank, Statement of Profit & Loss (a report on
the income and expenditures of Bank. These reports can be generated at
daily, weekly, monthly, quarterly or yearly basis as required by the bank.
Income and Expense

The department also needs to calculate the revenues and expenses,
control expenditure and forecast profits every month.
Storage of Records
Accounts Department also has the duty to store vouchers and system
generated reports.
Activity Checking
Daily activity checking and monitoring is done by the accounts
department of the whole bank
Stages of activity checking:
There are four stages in which activity checking takes place:
 Collecting vouchers, cheques etc from all departments
 Sorting Vouchers
 Checking Activity
 Packing
Collecting Vouchers:
The first stage of activity checking is collecting all vouchers, cheques,
DD’s, pay order, pay slips etc from all departments of the bank. Mainly
vouchers come from the operations department. After collecting these
vouchers etc from the departments, we need to check if all stamps are
stamped on these vouchers etc.
Sorting Vouchers:
After all vouchers are collected, they need to be sorted into eight
categories:
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1. Customer Debit: Includes debit vouchers and cheques
2. Customer Credit: Includes credit vouchers and credit slips
3. Income: Income vouchers
4. Expenditure: Expenses vouchers and payment vouchers
5. Others: Includes vouchers about excise duty, FED, teller, ATM,
payables etc
6. Online: Contain online vouchers and online credit slips etc
7. Head Office (H.O): Includes HO vouchers and DD advices
8. Bills Payable General (BPG): Includes vouchers and DD, Pay
orders, Pay slips etc
Checking Activity
After sorting takes place, daily activity is checked using the statement of
account activity, which contains all daily activity of the accounts in the
bank. Activity checking is done by seeing if the values and account
numbers in the sorted vouchers match that of the activity and whether or
not there is any missing activity that is not in the vouchers.
Packing
After the activity is checked, all sorted vouchers are counted, both debit
and credit and then packed by totaling the vouchers.
 10 ) Work done during Internship Tenure
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During my 6 weeks at the branch I have experienced different aspects of
banking. Basically it was general banking which is usual in every branch of

all the commercial banks.
I have ingested all of the banking hours there and have a close eye how
the work has been done. The normal banking time is 9:00 am to 5:00 pm
where as in Ramdan; the timing is 8:30 am to 3:00 pm.
BOP Nowshera Virkan branch deals with:
1. Deposits
2. Account Opening
3. Remittances
4. Clearing
5. Accounts
6. Utility Bills Collection
DEPOSITS DEPARTMENT
I spend first week of my internship in deposits department here I perform
the following tasks:
1. Issuance of token
2. Posting of cheques in the computer
3. Posting of cash receipts vouchers in the computer
4. Authentication of cheques, receipts, and vouchers
5. Transfer of utility funds
REMITTANCE DEPARTMENT
For Second week, working in remittances department, under OGII Mr.
Nasir Hussain the duties assigned to me included:
1. Entry of remittance instruments in the system & preparation of

physical instruments
2. Entering the data into the system many times to understand the
process of making drafts and pay orders.
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3. Making the entries (head office credit and party account debit) in
daily book and daily summary sheet and at the end balancing the
sheet. The process is rather a critical one because the balances of
these sheets must tally with the printed balances of computer each
day.
4. Make credit and debit vouchers of charges recovered on
remittances, as advised to me by the officer.
5. I have made and processed some telegraphic transfers during my
training session.
6. Maintaining the balances of daily issued and paid Pay orders into the
daily working register.
7. I was also trained how to respond to telegraphic transfers which are
received by the bank from other branches. These are received
through TCS at early working hours. An action is required after
receiving these transfers.
The account of the creditor for whom the telegraphic transfer are sent,
is credited and a message is sent to the originating branch that we
have credited the account of the relevant customer. A credit voucher is
made for crediting the account of customer.
ACCOUNT OPPENING DEPARTMENT

I spend third week of my internship in accounts department with Mr. M.
Rizwan Rasheed and Mr.Usman . Accounts opening department
includes opening and closing of accounts, issuance of cheque books,
record keeping, and issuance of ATM cards.
Steps for Opening an Account:
 Introduction of customer
 NADRA Verification
 Filling out the account opening form which contains:
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 Title of account
 Address
 CNIC number
 Next of kin’s CNIC number
 Signature and thumb print of the applicant
 Amount deposited (minimum 100/- required)
 K.Y.C. ( know You Customer) is an important section in which

depositor’s additional information is taken like type of customer,
education, source of funds, expected monthly income etc.
 And after all the bank internal inquires, the cheque book will be
issued to the customer within 10 days.
Duties and Responsibilities:
My duties and responsibilities in account opening department include:
1. Providing the customer with account opening form,

2. Filling in the form for customers who can’t fill in themselves and then
use the appropriate bank stamps to complete these forms.
3. I also had to do a ‘Verisys’, a verification system started by NADRA on
the CNIC of the new account opener. A ‘Verisys’ tells, if more
information pertaining to the customer is needed to open the account
or not.
4. Take print of NAB and OFAC to check the list either the person is black
list or not.
5. Guiding some customers about the requirements of opening an
account
6. Entering the new record into account opening register
7. Stamping the account numbers on the manual cheque book
8. Entering the new cheque book serial numbers along with account
numbers into cheque book register
9. Filling in the application form requesting issuance of printed cheque
books to NIFT, at the end of day
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10. Preparing and entering the letter of thanks into DAK dispatch
register
 To Customer:
 When a new customer has opened his account in the bank, the
bank writes a letter of thanks for account opening and posts it to
the customer.
 To Introducer:
 The bank writes a letter of thanks to introducer regarding his
service for a new account opening customer.
11. Receiving the authority letter from persons and obtaining their
receiving on the letter make entries in cheque book register and issue
the cheque book to that person.
12. I was to assist a customer towards the whole process of stopping

payment. To fill a form which is same as a cheque book requisition form
and an indemnity form, stating no responsibility on behalf of the bank if
any illegal payment is made before the time of announcing a cheque
book lost.
CLEARING DEPARTMENT
I spend fourth week of my internship Clearing is the banks function in
which the cheques of other banks are collected to deposit into the
customer’s account. The clearing department receives all kinds of
cheques drawn at different banks and sent them to the clearing house.
The clearing house in State Bank acts as a clearing agent between the
banks clears and verifies all kinds of cheques. All the banks have their
accounts with the SBP for clearing the balances. The main branch of the
bank acts as the clearing agent for the branches. Main branches of BOP at
all the cities deal with the NIFT. Each bank, after collection of all the
cheques sent them to their respective branches for clearance.
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Unfortunately, my branch has no defined clearing department.
Mr.Khushnood Sara has to deal with clearing procedure and also
received the mail (Dak) by courier for the branch.
Duties and Responsibilities:
1. The cheques and drafts are collected by the customer service officer. I
use to enter the daily collected cheques numbers, their amounts and
relative bank in the clearing register. It is necessary that it should be
a crossed cheque as it will be deposited in the customers account.
Those cheques which are of outstations branches are sent to their

relative bank’s branch via TCS at the end of the working hours. The
drafts are sent to the relative bank’s main branch. When these are
returned in almost three days, then we deposit the cheques amount in
customer’s account because it’s the confirmation process.
2. I use to register the return cheques in a register

3. When cheque is presented in BOP Gulshan-e-Ravi to be deposited
different stamps are put on cheque before their lodgment in outward
clearing.
Clearing held as following:
 Crossing the cheque
 Clearing stamp
 Endorsement stamp (payee’s account credited)
 NIFT
 Send report to the bank
 Delivered cheques to the respective bank
As part of my internship, I was responsible to collect cheques from the

customers that they deposited, put the official stamps on the different
kinds of cheques.
ACCOUNTS DEPARTMENT
I spend fifth week of my internship in accounts department.
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 I had to do daily activity checking, collecting vouchers, cheques etc
from all departments, sorting vouchers according to their
categories, checking activity, packing
 I calculated debit and credit vouchers for head office and noted
them in their voucher covers.
 Sorting the cheques of different accounts and arrange them
transaction wise. I arranged the daily vouchers 3 times a day. Their
arrangement was such that first the PLS vouchers, then CD
vouchers, and then they band in the same pattern with a voucher
cover. Ticking of voucher and the next day their entry in the register
is also an assigned task.
 I made the product sheet on excel. These sheets calculated the
semiannual profit of individual client. There were statements being
given to me from whom I had to select the amount, profit etc and
enter it in a prepared work sheet.
UTILITY BILLS COLLECTION

Here, I worked under the guidance of Mr. Nasir Hussain for three days
and collected utility bills include the bills issued by the LESCO, WASA,
PTCL, and SNGPL and post them into the system and also prepare of
billing scrolls. These bills received by bank during working hours from
general public. This branch is very busy in this regard.
11 ) FINANCIAL ANALYSIS:
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Ratios:
All the figures given below are in millions.
Earning Asset to Total Asset Ratio:
𝐸𝑎𝑟𝑛𝑖𝑛� 𝐴𝑠𝑠𝑒�/𝑇𝑜�𝑎� 𝐴𝑠𝑠𝑒�=546855 / 991665

= 0.55
The earning asset of bank of Punjab are 546855 and total
asset are 991665 so its earning asset to total asset ratio is 0.55.
Return on Earning Asset Ratio:

=𝑁𝑒� 𝐼𝑛𝑐𝑜𝑚𝑒/𝑇𝑜�𝑎� 𝐴𝑠𝑠𝑒�=25503/991665
= 0.026
The net income of bank of Punjab is 25503 and its total
asset are 991665 so its return on earning ratio is 0.026.
Net margin to Earning Asset=
𝐼𝑛𝑣𝑒𝑠� 𝑅𝑒�𝑢𝑟𝑛 − 𝐼𝑛�𝑒𝑟𝑒𝑠� 𝐸𝑥� / 𝐸𝑎𝑟𝑛𝑖𝑛� 𝐴𝑠𝑠𝑒� =(36149 – 35977)/54685

= 0.00031
The investment return of bank of Punjab is 36149 and its
interest expense are 35977 and its earning assets are 546855 so
its net margin to earning asset ratio is 0.00031.
Loan Loss Coverage Ratio:=
𝑃𝑟𝑒�𝑎𝑥 𝐼𝑛𝑐𝑜𝑚𝑒 + 𝐿𝑜𝑎𝑛 𝐿𝑜𝑠𝑠𝑃𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 / 𝑁𝑒� �ℎ𝑎𝑟�𝑒 𝑜𝑓𝑓𝑠 =

(25503 + 19164 ) / 1649
= 27.08
The pretax income of bank of Punjab is 25503 and its loan
loss provision is 19164 and its net charge offs are 1649. Its loan
loss coverage ratio is 27.08.
Deposit Time Capital Ratio:=

𝑇𝑜�𝑎� 𝐷𝑒�𝑜𝑠𝑖 / �ℎ𝑎𝑟𝑒ℎ𝑜�𝑑𝑒𝑟 𝐸𝑞𝑢𝑖�� = 734596 / 11451
= 64.15
The total deposits of bank of Punjab are 734596 and its
equity is 64.14. Its Deposit Time Capital Ratio is 64.15.
Loan to Deposit Ratio:=

𝐿𝑜𝑎 / 𝐷𝑒�𝑜𝑠𝑖� = 137960 / 734596
= 0.188
The Loan amount of bank of Punjab is 137960 and its
deposits are 734596 so its loan to deposit ratio is 0.188.
Price Earning Ratio:=
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𝑀𝑎𝑟𝑘𝑒� 𝑉𝑎�𝑢𝑒 �𝑒𝑟 𝑠ℎ𝑎𝑟 / 𝐸𝑎𝑟𝑛𝑖𝑛� �𝑒𝑟 �ℎ𝑎𝑒𝑟 = 89.80 / 13.08
= 6.87
The market value of bank of Punjab share is 89.80, its
earning per share is 13.08 including its capital gain. So its Price
Earning ratio is 6.87.
Dividend Yield Ratio:=

𝐴𝑛𝑛𝑢𝑎� 𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 �ℎ𝑎𝑟𝑒 = 7.12 / 89.80
= 0.0792
The Dividend per share of bank of Punjab is 7.12 and its
market price is 89.80 and its dividend yield ratio is 0.0792.
Dividend Payout Ratio:=

𝐷𝑖𝑣𝑖𝑑𝑒𝑛 / 𝑁𝑒� 𝐼𝑛𝑐𝑜𝑚𝑒 = 4360 / 25503
= 0.1709
The total dividend of bank of Punjab is 4360 and its net
income is 25503 and its dividend payout ratio is 0.1709.
Market to Book Value Ratio:=

𝑀𝑎𝑟𝑘𝑒� 𝑉𝑎�𝑢 / 𝐵𝑜𝑜𝑘 𝑉𝑎�𝑢𝑒 = 89.66 / 85.80
= 1.044
The market value of bank of Punjab share is 89.66 and its
book value is 85.80 so its ratio is 1.044.
MARKETING STRATEGY
The target market of the branch is all the salaried

persons, labors house wives, retired people and all those type
of people who want to save cash for their future life. Whereas
the big business men and big investors, financers can deposit
and withdraw their cash.
• As internee I saw that how this branch creates public relation

with others to contribute and bring about positive changes in
the area. Sometime branch organize concerts and games for
special children's who cannot participate in any game it mean
organize special children concert and also invited their parents
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to provide information about the bank so this is a way to create
public relation. A Musical evening was also arranged for
children's; most of those students never had an opportunity to
participate in any such lively event. This musical event creates a
will to do something and this day makes an unforgettable day
they will remember for many months to cone.
• Sometime branch organize matches between different villages

and support finance and gifts and some time the branch
distribute pamphlets.
• At the time of independence branch organize a big hall and

invited different schools children and their parents the students
perform their performance and after the end of the day they
distributes gills and provide entertainment to the whole crowd
and describe little address about the performance of the bank
and there is mention about the benefits of the bank.
Sometime branch organize quiz competition among different
schools students all the faculty member and parents of the
children are also invited the look the children performance and
enjoy it and after the end prizes distribution ceremony and little
address with crowed about the branch and the spending time
with village so from this way branch done his publicity.
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12 ) SWOT analysis:
Is a short form for strengths, weakness, opportunities, and

threats.
It is an analysis of internal strengths and weakness of an organization

as well as external opportunities and threats. SWOT analysis affects the
organizational performance. The overall evaluation of a company
strengths, weakness, opportunities and threats is called SWOT analysis.
An organization's mission is accomplished by best strategies in SWOT
analysis by:
Taking advantage of organizations opportunities and strengths.
Reducing effect of threats.
By avoiding the weaknesses.
Organizations missions are used as a context and SWOT analysis is one

of the most important steps in formulating strategy; managers avoid
weaknesses and assess internal strengths.
STRENGTH:
BOP bank officers are considered as the most able professionals in the
banking world. In my observation BOP officers interact with the
customers as they are their personal friends and used to solve their
problems as their own.
The customer's perception for BOP is very high due to compassionate

and personalized services of the officers. Customers feel secure while
dealing with BOP and they also have trust.
The branches of BOP are opened in commercial areas in order to save

customers from facing problems to reach the bank.
The security system is very good in BOP.
Employees are given with good facilities.
Internal computer system in BOP is very reliable and easy to use. Every
information is computerized.
There is properly maintained data.
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BOP is 51% owned by Punjab government. BOP has an asset base of
Rs. 165 billion and total deposits of Rs. 138 billion.
The management prepares a financial statement which shows the state

of affairs, cash flows, the result of operations of state of affairs, &
equity changes.
BOP follows the timelines specified by SBP for implementation of

recommendations of Basel-II committee for risk management and
management.
BOP is adopting measures to monitor and minimize risks that are

related to banking industry.
WEAKNESS:
There is lack of proper internal control in BOP which is pointed by

the auditor in his review.
BOP has number of products and services more than commercial

banks but any advertisement on electronic media is not given.
During my internship, I observed that employees have a lot of

burden of work. The work should be distributed equally between
the employees on the basis of their capabilities and their post
Selection of employees should be biased.
There is a lot of concern of SBP on the bank's control that is the

weakness of BOP.
Due to more influence of the government there is negative

behavior of the staff with the customer.
Staff is not too much motivated due to no proper rewards or less

remuneration.
There is no time management principle for customer care.
There is lack of proper internal control.
BOP has negative profitability every year as its director and

presidents played trick with the bank by involving themselves in
a fraud of billion of rupees.
OPPORTUNITIES:
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There can be a great increase in deposits of BOP by commencement of
new schemes.
There should be emphasis on e-banking.
BOP should adopt the diversification, innovation and mission driven

approach which are keys to success.
A number of financial schemes like special deposit accounts that have

unique features are introduced by BOP. In past few years, deposits of
BOP have been increased by 40%.
Information technology is the future of this dynamic world. So BOP

should emphasize on it. Like other foreign banks, bank can design
universal account to enhance online facilities.
BOP is satisfying customer needs. A number of products are introduced

by BOP especially in retail banking and customers are becoming more
loyal to the bank. And due to optimum prices and brand products,
customers feel secure and convenient.
THREATS:
Credit crisis have an adverse affect on BOP.
BOP is facing a strong competition by other banks as business is

growing at very high speed.
Customers are lacking trust in BOP due to which deposit growth is slow.
MARKETING ANALYSIS:
BOP has lack of promotional activities due to which marketing department

is very weak. But recently print media advertising is started which will
increase customer base and helps in developing BOP's reliability
BOP MARKETING MIX:
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Product:
Products involved are Finance, customers, & agriculture.
Price:
Due to economic crisis price charged is high and the lending rate
ranges from 18-19%. The whole banking system is under the influence
of price factor. So it is very important.
Promotion:
BOP is cutting down its cost by cutting off its advertising expenditures.
Place:
BOP does not involve middleman and sellers as it is selling its services
and products through its branches that are spread across the country.
MARKETS SERVED:
The following markets are served by the bank of Punjab.
Agriculture market:
Corporate customers.
Commercial customers that involves middle & low income group.
Household customers that involves low & middle income group.
FINDINGINS
During my internship period, I had found the following weaknesses:
 Some employees in BOP just do the same job, they become master
of that job but they know nothing and or their knowledge about their
job.
Page 94 of 105
 Pay scale of BOP employees is less than other banks, which is an
indication of discouragement among employees.
 Employees don’t have direct access to higher authority. This creates
a frustration among employees.
 The size of almost all branches of BOP is very small which creates
difficulty for both the customers and employees.
 Some people in the bank are over burdened with work. For this the
work should be divided equally.
 ATM facility is only availBOPe in some branches.
 13 ) RECOMMENDATIONS FOR THE BANK OF PUNJAB
Based on findings, I would like to suggest some recommendations to BOP

which will enBOPe the bank to compete with other banks more efficiently.
These suggestions are based on my experience with the bank.
Page 95 of 105
 Many of the bank employees are just master in their own field. They
don’t know the job of other seats. It creates a problem for the
Manager when any of the staff members is absent. I would suggest
that each employee should know the job of almost every seat in his
or her branch.
Specially, the old officers who are experienced in their relative fields
don’t know outside their working boundaries. They should have
experience at all outlooks of banking.
 Bank should revise its rewards and incentives systems. Proper
incentives are to be given to employees on their overtimes
specifically on closing dates. Personal achievements of staff
members must be awarded.
 General look of the premises of internal/external should be clean
and presentable.
 Following should be displayed on notice board:
 Opening, closing cash timing.
 List of prize bonds.
 Parking should be providing.
 Staff must look smart, energetic, enthusiastic, and eager to serve.
 There should be an information desk to provide the information and
to receive the complaints of the customer in the bank. There is no
complaint box available in the branch and not any person appointed
to hear the complaints.
 BOP should start its operation in credit card. These cards are very
helpful for the ordinary customer in general and the business people
in particular. To make it mores secure and to eliminate the misuse of
it, the management is required to keep proper security against the
card.
RECOMMENDAION FOR A BETTER WORLD RETAIL BANKING.
RBG has been striving to capitalize Customers are always the top priority
for Retail Banking, and we offer a range of solution-driven and cost-
effective products and services that cater to all segments of society. We
believe in excellence and innovation. RBG has been striving to capitalize
on the right opportunities for a mix of the population; we provide
solutions!
Page 96 of 105
With our strong presence through our wide spread network of 327
conventional branches all over Pakistan, we offer a wide and innovative
range of banking services, with a mix of value added services like
Automated Teller Machines and Virtual Retail Banking, known as Online
Banking. To facilitate overseas Pakistanis, we provide Home Remittances
services in all branches.
Our customers are what make us a true people’s bank. We offer our
expertise to all segments of the society, including dedicated products for
senior citizens, ladies, agriculturists and minors, besides various products
for business concerns.
 RECOMMENDATIONS FOR HCC
Some recommendations for University of the Punjab Gujranwala

Campusare:
 Educational tours should be conducted for better

understanding of course contents practically
 Hailey should introduce this degree in the market by
conducting seminars in different institutions and organizations
so that people may get aware of it
 Hailey should arrange some meeting with the industrialist,
bankers and other top authorities of different companies just
to inform them that their students have capabilities to work in
this challenging environment
 The specialization must also be offered in more areas like IT
Skills Acquired
During my internship i learned a lot of new things from the staff of bank.
As working in the bank was my first exposure to working environment so i
learned m any skills during this period. All staff was very helpful and was
Page 97 of 105
very co-operative in improving my skills. The skills i learned during
internship are as follow.
Direct Customer Dealing:
While working in the bank i learned how to deal with the customer.
Customers are of different human nature and we have to treat every
customer according to his nature. Customer are the most important part
of any organization. So it’s very important for organization that how they
talk with them and how they solve their problems. This thing i learned
very well during internship.
Communication Skills:
In practical field, i learned how to communicate with other people, with

your colleagues with your authorized and with your employs. I also
learned who have the power and who reports to whom. During my
exposure to working environment of the bank i gained the practical
knowledge of how to communicate with different people.
Time Management:
While working, i also learned how to manage time in difficult situations

and how to meet the deadlines of various operations. All staff members
were very efficient and co-operative in this regards. Some other skills and
knowledge i learned during internship are: account opening procedure,
how to operate lockers, some other financial terms and knowledge etc.
In the end i am grateful to all staff members who helped me a lot in

improving my skills.
 14) CONCLUSION
Page 98 of 105
Working with BOP bank was really a wonderful experience for me. During
my internship, although I got some limitation but I have learned a lot
about the corporate world. Though, it was my first practical training but it
was really a great time to work with such a bank. BOP has an edge over
other local banks, as it was the government bank. All the staff was very
kind and appreciates my work.
This internship has also developed professionalism in me and was very

helpful in understanding the behavior of different customers and
stakeholders with whom we have to deal.
Conclusively, the bank is working hard to get into the race of being best
and I am looking a very prosperous and bright future for BOP as it is
remaining continuous updated with its customer’s needs and new
technologies and innovations around.
 15) BIBLIOGRAPHY
Oral
Much oral information was provided by Mr. Syed Zahid Hussain Branch
Operation Manager and Mr. Nasir, and Mr. Rizwan Rasheed.
Books
Ghani, M.A. (2009), Advanced Accounting (13th ed.) PAK IMPERIAL BOOK
DEPOT
Meigs and Meigs (2008), Managerial Accounting (9th ed.) PEARSON BOOK
SELLER
Written
 Annual Reports
 Records
Page 99 of 105
 Internet
 www.bop.com.pk
 www.pakboi.gov.com
 www.google.com
 16) Glossary
BILLS FOR COLLECTION

A bill of exchange drawn by the exporter usually at a term, on an importer
overseas and brought by the exporter to this bank with a request to
collect the proceeds.
CONTINGENCIES
A condition or situation existing at Balance Sheet date where the outcome
will be confirmed only by occurrence of one or more future events
EARNINGS PER SHARE
Profit after taxation divided by the weighted average number of ordinary
share in issue.
GUARANTEES
An agreement involving a promise by a person (the guarantor) to fulfill the
obligations of another person owning debt if that person fails to perform
HISTORICAL COST CONVENTION
Recording transactions at the actual value received or paid.
LIQUID ASSETS
Assets that are held in cash or in a form that can be converted to cash
readily, such as deposits with other banks, bills of exchange, treasury bills.
MARKET CAPITALISATION
Number of ordinary shares in issue multiplied by the market value of
share as at the year end
PRICE EARNINGS RATIO (P/E RATIO)
Page 100 of 105
Market price of a share divided byearnings per share
SUBSIDIARY COMPANY
A company is a subsidiary of anothercompany if the parent company
holdsmore than 50% of the nominal value ofits equity capital or holds
some share in itand controls the composition of its Boardof Directors.
 17) Appendix
Scanned Copy of Letter of Authorization
Page 101 of 105
Page 102 of 105
17) ANNEXURE
Annexure-I
UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS
1. Student Name: Fahad Nabi

2. Roll No:BC12106
3. DEPARTMENT: COMMERECE
4. Contact Number: 92-345-4485496
5. E-mail ID: fahadvirk22@yahoo.com
6. NAME OF COMPANY:
BANK OF PUNJAB NOWSHERA VIRKAN BRANCH
7. AREA OF LEARNING
HRM(admin)
ACCOUNTS
AUDIT(internal)
FINANCE(receipt/payment)
8. ADDRESS:
BOP TATLAY AALI ROAD NOWSHERA VIRKAN BRANCH DISST.

GUJRANWALA, (PUNJAB) PAKISTAN
9. DATE OF JOINIG:01-08-2015to15-09-2015
10. DURATION:6 WEEKS
:
LANDLINE#055 6762311-13, MOBILE#0300-7433028
Annexure-II
CERTIFICATION
Page 103 of 105
This is to certify that this report FAHAD NABI
Submitted in partial fulfillment for the award of DegreeB.COM (Hons)
Department of Commerce, Punjab University Gujranwala Campus was
carried out by
MR.RIAZ AHMED CHEEMA Manager of BOP
under my guidance. This report has not been submitted to any other
University or Institution for the award of any degree/diploma/certificate.
Good Bye ! best of luck.
Page 104 of 105
Page 105 of 105

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INTERNSHIP REPORT ON

Areas Covered by Report

The report I am submitting to my honorable teacher contains the following

o Treasury / Finance Department

Most of the department’s functions are being learned during the

Mission Statement/Vision Statement 12

General Banking at BOP 37

Ratio Analysis& Interpretation and

According to my internship program, I completed my six weeks

 Account opening Department

 The internship offer the opportunity for fresh graduates, masters to

I Dedicate This Work To My

 Who have a great source of love, affection and encouragement

 Dedicated to my teachers without whom I wouldn’t be able to be the

 BOP Nowshera Virkan Branch

Structure of the Branch

Major Customers and Markets of BOP

Some of the major customers of Bank of Punjab are:

 Pakistan Telecommunication Private Limited

BOP still makes a difference in attracting customers with minimum

5 ) VISION AND MISSION STATEMENT

“To be a customer focused bank with service excellence.”

“To exceed the expectations of our stakeholders by leveraging our

 Profitability: For the prosperity of our stakeholders that allows us to

 Corporate Social Responsibility: To Enrich the Lives of community

 Recognition and Reward: For the talented and high performing

 Excellence: In every thing we do.

 Integrity: In all our dealings.

 Respect: For our customers and each other

1. To provide speedier services to the common man.

Head Office and the main branch of BOP are in Gulberg 3

1. Regional Office Lahore.

2. Regional Office Rawalpindi.

3. Regional Office Gujranwala.

4. Regional Office Faisalabad.

6. Regional Office Karachi / Quetta.

7. Regional Office Peshawar

Mr. Safdar Javaid Syed Chairman

Mr. Naeemuddin Khan President

Mr. Azhar Hameed Director

Mr. Haroon Khawaja Director

Mr. Farooq Ahmed Awan Director

Mr. Naveed Masud Director

Mr. Mujtaba Jamal Director

Mr. Shafqat Ellahi Director

Mr. Shafqat Mahmood Director

Mr. Tariq Mahmood Pasha Director

Mr. Viqar Ahmed Khan Director

Mr. Raza Saeed Secretary To The Board

Central Management Hierarchy

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT (EVP)

VICE PRESIDENT (VP)

ASSISTANT VICE PRESIDENT (AVP)

OFFICER GRADE-I (OG-1)

OFFICER GRADE-II (OG-2)

OFFICER GRADE-III (OG-3)

 Current Account (CD):

Current account is a type of chequing account that banks offer, this

 BOP Basic Banking Account (BBA):

The minimum initial deposit will be Rs.1000. no profit will be payable. No

 BOP Tijarat Account (BTA):

In order to further facilitate the managers in targeting customers, it will be