Beruflich Dokumente
Kultur Dokumente
INTRODUCTION
Bank is an institution, which receives money from one party and lends to another party.
There are large numbers of definitions which are offered by the different authors keeping
view the various definitions we may define the bank in the following words.
“A Bank is reliable financial institution which receives the money from one group of
people and lends to other group of people. So bank performs the duty of financial
Central Bank
Commercial Bank
Industrial Bank
Exchange Bank
Saving Bank
EVOLUTION OF BANKING
Bank Origin. There are different views about origin of the world “Bank”. According to
some people the word “Bank” is derived from the world “Bancus” which means a
“Bench”. They argue their point by this transacted their business of money exchange on
the benches. If the business of any businessman failed, his bench was destroyed by the
people. Due to this practice the word “Bankrupt” was also used.
1
On the other hand some people say that the world “Bank” is derived from German time
the word “Bank” was replaced by the word “Bank” which is called “Banco” in
Italian language.
History of Banking
The history of banking evolution is very interesting. In the early ages human like and
wealth was not secure. Due to fear of loot-mar and theft people buried their wealth under
land but this method was not satisfied. People started to search the custodians of wealth.
The evolution of banking started and it has crossed the following stages.
In the present age bank is modernized shape of those institutions. But to earn more profit
every bank started issuing overdraft facility without maintaining adequate cash reserves
to meet the demands of the depositors. This inability created the financial crises. Now to
maintain the good will of the banks perform their duties. All the commercial banks
perform their duties keeping in view the instructions of the Central Bank.
2
GROWTH OF BANKING IN PAKISTAN
The entire banking business was controlled buy the non-Muslims before the partition of
the sub-continent. When Hindus became sure about the divisions of the sub continent,
they secretly began to transfer their capital to the safe places in India. The funds and
The state bank was established soon after the independence of Pakistan as a central bank
which will govern the all other banks and financial institutions. It will make rules and
To remove the financial difficulties and to establish sound banking system Govt.
established the State Bank on Ist July 1948, in the development, to banking system it
IDBP NDFC, PICIC, HBFC. These financial institutions financed the particular sectors
Commercial banks have constituted the most important source of institutional credit in
New branches were opened in the country with the development of banking system.
3
COMMERCIAL BANKING SCENARIO IN PAKISTAN
At the time of independence in 1947, there were 38 scheduled banks with 195 offices in
"Pakistan. But by December 31, 1973 there were 14 scheduled Pakistani Commercial
Banks with 3,233 offices all over Pakistan and 74 offices in the foreign countries.
Nationalization of Banks was not done 1st January, 1974 under the Nationalization Act
1974 due to certain objectives. But it had negative effects on the efficiency of the banking
sector.
The Bank Of Punjab owes its existence to an act of provincial assembly, the bank of
Punjab act 1989; it commenced its operations, under the purview enshrined, as far back
as October 1989 with up capital 60.00 million. BOP is an alluring symbiotic epitome,
worth-emulation, of public and private partnership. The bank has earned a relevant
recognition and abundant accolades for its stellar growth and phenomenal progress;
posting historic results in all facets of its operation. Ranked as country’s premier financial
activity and honored with some of the most prestigious awards. Nurtured, nourished and
looked after with steadfast resilience yet doting tenderness against odds and obstacles, the
sapling in a span of a little over one and half a decade, has grown into a towering tree
with verdant foliage, blossoms; its balmy bower, soothing shade and shelter provide
solace and calmness as the preferred choice of thousands who bank on and repose trust in
advantage.
4
BOP Awards & Achievements
Excellence Award by the Central Board of Revenue
The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in
the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop
Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate
Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered
Pakistan.
The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards
distributed in 2006.
Achievement Award
The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI
5
2. OBJECTIVES OF STUDYING THE ORGANIZATION
Punjab”
country.
• I had been there many times before internship, there working environment
• BOP provides opportunity to its staff members to learn more and more by
concepts.
• BOP has large and wide range of product line so the opportunity of
6
3. OVERVIEW OF THE ORGANIZATION
Since its incorporation the Bank has grown manifold showing remarkable growth in all
aspects. Especially, after the current management took over the affairs of the bank in
2003 there has been tremendous growth in all its facets of operations as a result of
application of prudent and pragmatic policies with futuristic approach. Owing to its
significant performance, profitability, financial standing and market penetration the Bank
Currently, the Bank of Punjab is regarded as one of the most profitable banks of the
country both in absolute & real terms. Branch network of the bank consists of 273
7
Sound financial footing, improved profitability and competent management are the key
factors taken into consideration by PACRA, the credit rating agency, while assigning to
the Bank highly credible ratings of AA for long-term and A1+ for short-term which is the
BOP has computerized all its branches, which are inter connected vide online system on
real time basis. Bank's customers are facilitated by shared network of on line ATMs in all
Bank's share in economic growth, especially agricultural and SME sectors cannot be
allowing the bank to play a pivotal role in strengthening this neglected sector of our
economy.
The Bank of Punjab was established under the act of Punjab Assembly, viz .The Bank of
Punjab act, 1989. The bill to this effect was passed by government of Punjab in
accordance with the provision of the constitutions on July 26, 1989 and later on was
The act provided the foundation on which edifice of the bank was created. The entire
responsibility of policy formulation and management has been placed, under the act, with
8
The Bank of Punjab is working as a scheduled commercial bank with its network of 273
branches at all major business centers in the country. The Bank provides all types of
banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency,
Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of
Punjab has indeed entered a new era of science to the nation under experience and
professional hands of its management. The Bank of Punjab plays a vital role in the
savings and providing funds for investments. Attractive rates of profit on all types of
business such as Imports, Exports and Remittances, Financing, Trade and Industry for
working capital requirements and money market operations are some facilities being
provided by the Bank. The lending policy of Bank is not only cautious and constructive
but also based on principles of prudent lending with maximum emphasis on security. As
agriculture is considered as backbone of our economy the Bank of Punjab has introduced
Vision statement
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 programme driven products & services in the Agriculture and Middle Tier
Markets through a motivated team.
9
Core values
Corporate social
Recognition and reward for the talented and high performing employees
Punjab Government wishes to state that being the major stake holder in the Bank of
Punjab it has full faith in the new management and operations of the Bank. The
government further pledges its unequivocal support to the Bank and firmly believes that
the affairs of the Bank are sound and its financial health robust.
10
Social and Economic Commitment of the Organization
The banks provide various products & services to its customer to cater their need of
Investments and other social or business requirements. BOP is now leading the way to
providing many job opportunities. As a govt. bank perform many social and economic
functions e.g. payment of pensions, receipts & payments of govt. funds, special services
to farmers.
Financial Performance
Financial highlights for the past five years ended May 31st 2009. are presented along with
key performance indicators.
11
Year Wise Growth
12
3
-107% Till
2009 14,691,276,785.95 -15,062,093,781.04 -370,816,995.09 May 2009
BOP Management
BOARD OF DIRECTOR
13
0 Chairman
Mr. Safdar Javaid Syed
1
0
Mr. Naeemuddin Khan President
2
0 Director
Mr. Tariq Mahmood Pasha
3
0 Director
Mr. Shafqat Ellahi
4
0 Director
Mr. Azhar Hamid
5
0
Mr. Shafqat Mahmood Director
6
0
Mr. Muhammad Naveed Masud Director
7
08 Mr. Waqar Ahmed Khan Director
Secretary
09 Mr. Raza Saeed
To The Board
AUDIT COMMITTEE
4. Remittance of Money
6. BOP Services
14
Current Deposit Schemes
Current Account
and on submitting all such documents as may be revised by the Bank. The Bank
reserves the right to demand such relevant documents even after opening of
• Services Charges Rs. 50/- will be deducted if blow the monthly balance
Rs.10000/-
• The Accounts may be opened singly in one name or jointly in two or more names.
ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance
15
The minimum initial deposit will be Rs.1000.
• There will be no limit for maintain minimum balance. In the cases, there balance
in BBA's remain "NIL" for a continuous 6 month period, such accounts will be
closed.
The rent free locker facility will be allowed on availability of locker and after
The reduction in rate of mark up on Consumer finance will be on loan amount equal to
The incentive package will be reviewed on quarterly basis and on the deposit procured.
16
(ii) Pehlay Munafa Scheme
PLS Accounts
PLS Savings Accounts may also be opened by charitable institutions, for Provident
and in all other cases where such accounts are required to be opened under the orders
The rates of profits may vary from period to period viz January to June/July to
December each year. Calculation of Profit on PLS Saving Accounts will be made for
each calendar month on the lowest credit balance of an account between the close of
17
Recently this scheme is introduced to attract investors. According to this scheme profit is
paid in advance which can be reinvested. Profit rate charge is multiplier e.g. more you
invest and more the rate will apply. Period for this scheme is three, six, nine, twelve and
eighteen months.
This is a saving bank product available for all senior citizens i.e. persons of 60 years
and above who are eligible to open a saving account as per our Bank’s criteria. The
account can be opened singly or preferably jointly (husband & wife) provided either
This is a saving bank product available for all females who are eligible to open a saving
account as per our Bank’s criteria. The account can be opened singly or jointly with
18
This is a saving bank product available for general public i.e. persons who are eligible to
open a saving account as per our Bank’s criteria. The account can be opened singly or
• The deduction of Zakat and Withholding tax will be applicable as per law of the
land.
• Average balance during a calendar month will be taken to determine the deposit
slabs and applicable profit rate for that month for the purpose of creating
provisions.
This is a term deposit product. The term is from 1 month to 5 years and the profit is paid
on monthly basis. The minimum amount of deposit is Rs.80,000/-. The rate of profit is
from 6.0 % p.a. to 8.50 % p.a. depending on the tenure which is higher than Bank’s
19
This product is governed under PLS rule i.e. the rates mentioned are expected and the
Bank reserves the right to revise the rates and terms & conditions of profit under Profit &
Commercial Loan
Running Finance
Running finance facility provided by the bank to its selective customers for business
purpose only. A limit of amount is sanctioned to borrower keeping in view the financial
worth of his business. Customer has drawing power equal to loan sanctioned by bank and
only mark up will be charged on amount withdrawal for business need not on sanctioned
amount.
Pledge of Shares
20
Government Securities
Bonds & NIT Units etc, issued by National Saving Centre Government of the
Hypothecation of Stocks
Banks in such cases although do not have a physical custody of the goods, however have
a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take
custody of the stocks, in the event the borrowers default to repay the loan or fail to meet
their obligations, as agreed. Criteria to merit this facility is provided in the Banks Credit
Policy Manual, which is care fully assessed by Risk Managers, while recommending a
This group performs its function through its following two units.
1- Corporate Banking
2- Investment Banking
21
Corporate Bank
The Corporate Banking shall endeavor to market new clients and retain the existing
relationships and build market share through offering superior services, competitive
pricing and wide product range to valued corporate clients including the Multi National
corporate accounts will continue its endeavor to remain a major contributor to Bank’s
earnings.
Investment Banking
Investment Banking Unit offers full spectrum of services, which include TFCs,
Mergers, Corporate Restructuring, Acquisitions and other products. IBU shall also work
SME Finance
Females are encouraged through micro finance schemes to start business with lower
fiancé.
22
Auto Lease Financing Scheme
Finance is provided to dealers especially to car dealers at term and conditions keeping in
According to agreement with Ali Akbar Group fiancé will be provided for its franchises.
Agriculture Credit
Amount: Maximum Rs.500,000/- according to per acre limit of the crop. It is useful as
Scheme 2008-2009
23
Facility For Purchase Of Tractor Under Green Tractor Scheme 2008-
09"
All Farmers who have been declared successful through computerized balloting. The
land free from all encumbrances. Existing BOP borrowers having land under Bank's
Provision of financial facility to the farmers and non farmers (those who provide
tractors to farmers on rental basis for various tractor related operations), for purchase of
farm/fish farm for commercial purposes) Installments are 16 equal quarterly installments
24
Commercial Agro Services Finance Scheme
Provision of financial facility to the commercially viable entities with immaculate track
record for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters
Commercially viable entities with immaculate track record with the Bank/Other
financial institutions.
Running Finance Facility for purchase of animals, cost of feed, medicines and other
running expenses of the Farm. Running Finance Facility will be provided for the type
Lease Financial Facility for purchase of Milk producing Animals for landless people.
25
Consumer Finance
About Scheme
A personal loan facility for the purchase of consumer durable goods (like TV,
Refrigerator, Cooking Oven, for their personal use, repayable on easy installments.
Target Market
employees.
Products Available
Mobiles, Vacuum Cleaners and many more products of all renowned brands.
Down Payment
0%
26
Tenure/Loan Amount/ Mark-up Rate
Eligibility Criteria
Experience:
Valid CNIC
Documents Required
1. Application From
letter duly stamped. ( Specimens of certificates for (a) Salary received through
BANK ACCOUNT & (b) Salary received in CASH are enclosed herewith)
27
Security
enclosed)
Payment Mode
In monthly installments
Nature: Personal Loan Facility for purchase of consumer durable goods from
The maximum financing amount Rs. 5,00,000/-, No mark up for tenure up to 12 months.
A personal Demand Finance facility for meeting their personal needs & repayable
Tenure:
28
Quick Cash
Loan Amount
Tenure:
01 Year (Renewable)
Demand finance facility to purchase brand new locally manufactured / assembled cars /
Finance Amount
Down Payment
Tenure
1 to 5 years
Payment Mode
In monthly installments
3 Years job experience and valid driving license & age 25-58 years
29
Period of loan, 1-3 years
It is a long term facility for purchase of house, flat, construction of house on self owned
1. Salaried persons
Finance Amount
Tenure
30
Smart Cash Loan
31
Service
The BOP Debit Card holders will be able to transact at any of the 1000 +
Merchants across the country. The following services can be utilized at the
Purchasing
Your BOP Debit Card can be used in place of cash at all outlets where the M-
Net logo is displayed. This is a service which lets you pay directly from your
account without using cash. When a payment is made through the debit card,
Remittance of Money
The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money
from one place to any part of the country and outside the country. The money is remitted
by means of:
5. On line Transfer
32
Demand Drafts (DD)
The most common means of remittance in the bank is Demand Draft. When a person
wants to transfer his money to anther person having account with any other bank, he can
have. DD is a very secure method of transferring the money from, one place to another.
Pay Order
Pay order is a guaranteed document issued by the bank, the payment of which is made by
the same branch issuing this pay order. Pay order is used to transfer the funds within the
city while Demand Draft used to transfer the funds between the cities.
To transfer money from one place to another through a bank the second means of
mainly because the transferor, unlike in case of DD does not want to obtain and take care
of any instrument like DD and, of course, to present it at the Drawee Bank. So in order to
avoid above mentioned risks, which may contribute to the loss or delay on the part of
both the banker and the DD holder, the money transferor resorts to the MT.
normally called TT. The application procedure involved in the TT is almost the same as
is in the case of MT. In fact in The Bank of Punjab the Application form for DD, MT,
33
On Line Banking Facility
According to this facility the customer can make remittances and draw amount from their
account through network of branches with in the country from BOP owns branches. It is
With BOP’s state of the art online banking, you can access your account from
Now BOP enables you to do all the following transactions in minutes through
• Cash Deposit
• Cheque Encashment
• Stop Payment
• Account Statement
1. SNTDR-7 Days
2. SNTDR-30 Days
34
3. TDR -1 & Above Years
4. MIS
Under this scheme, the rate of profit is given on retention of deposit for minimum 7 days.
After lapse of seven days, the customers will earn profit on same rate .The rate of profit
paid in last half year i.e. in December 2008 was 0.5 % per annum. For this purpose the
encashment principal amount along with their profit is paid to customers through their
The customer who with draw money before 30 days will earn profit proportionate to
number of days passed. The profit rate lastly announced i.e. in Dec. 2008 on this scheme
On these schemes the profit is given according to different terms and conditions agreed
between the customers and the Bank. The customers are issued different certificates for
35
This is a term deposit which is placed for 5 years and profit is payable on monthly basis.
thousands. The rate of profit currently being paid is 11% per annum.
BOP Services
• BOP has over 272 branches collecting electricity, gas, telephone and WASA,
and other utility bills like demand notice for telephone connection during
business hours.
• Almost all the branches have special utility bills collection counters with sun-
• Separate booths for utility bill collection are available at all major cities for the
• Branches in all major cities have electronic bill collection machines. And now-
a-days BOP management is trying to launch on-line banking system in all over
the Pakistan. For this purpose some of the branches have been equipped with
• For the customers’ convenience, BOP accepts cheques for payment of utility
bills.
36
BOP Lockers
Provision of lockers is safe custody service that the bank of Punjab provides to their
1. Custodian
Licensee
The customer who is permitted by the bank to use the locker is called the
“Licensee”..
2- Locker’s Security
Security of all lockers is Equivalent to two years Rent for respective locker. Late
payment fee 5% per month of annual rent or Max of 25% of the annual rent. The
4. ORGANIZATIONAL STRUCTURE
37
President
Mr.
Directors Naeemuddi
Mr.Tariq n Khan
Mehamood Chairman
Mr. Shafqat
Elahi Mr. Safdar
Mr. Javaid
Azhar Syed
Ahmid
Chief
Chief Chief Chief Chief
Manager
Manager Manager Manager Manager
38
Regional Chief, Regional
Operational Head
Customer
Cash & Bills & Accounts Consumer
Deposit Advances
Clearing Remitt Finance
Foreign
I .T
Exchange
NON-CLERICAL STAFF
39
Registered Office/BOP Head Office
Gulberg III,lahore.
Main Branch
Branch Network
40
The bank of Punjab has opened 273 branches. All the branches are well located in
commercial and some residential areas, thus entering to the need business community and
private individuals. All branches are air-conditioned, well furnished, and equipped with
Faisalabad 44
Gujranwala 45
Karachi/Quetta 08
Lahore 67
Multan 63
Peshawar 08
Rawalpindi 38
REGIONAL OFFICES
The network of the branches of BOP is divided in to seven Regions in all Pakistan. The
administrate control, operational control and increasing business volume is the
responsibility of the Regional chief. The following Region has been established
up till now.
41
1. Regional Office Lahore.
42
There are 4982 employees working in The Bank Of Punjab:
General Manager
SME Product
43
Chief Manager
Marketing &
Development
Sales and marketing is the most important department of any financial institution now a
days, To maximize the sales and profit, this department should be proper planed and
managed.
Marketing Development
The first and the most basic job of the sales and marketing department is to plan develop
and make targets. And also to make strategies to achieve those targets and develop the
market.
The Bank Of Punjab use tactical analysis & routine planning of market strategies:
• Checking of the designated area, its sales, its volume and growth
44
• Location of the poor performance factors and analyzing their cause
• Finding their solution and getting the approval for its execution
• Visiting the area according to the plan and reporting it to the higher managements
• Asaish Partners
• Memorandum Of Understanding
• Discounts
• Spending Campaign
Aasaish Partners
1. PEL
2. LG.
3. Waives
Public Departments
Following are the public sector departments who officials are facilitated to get aasaish
products.
45
• MEPCO
• TMA
• Irrigations Department
• Pak Army
• Education
• PTCL
• NGPS
Private Departments
• Manufacture Companies
• Insurance
• Hospitals
• Banks
46
Concept of the Marketing Department.
A process of planning and executing the conception, pricing, promotion, and distribution
47
• Understand where the organization to be in the future, and write marketing plan
• Setup feedback systems to help you monitor and adjust the process
Credit Facility
The Product SME Division is responsible for product planning, development &
management. SME Division works together for developing of new products and
The new-product development process starts with the search for ideas. Top managers
should define the product and market scope and the new product’s objectives. They
should state how much effort should be devoted to developing breakthrough products,
modifying existing products and coping competitors’ products. New-product ideas can
members, and top management. The marketing concept holds that customer needs and
wants are the logical place to start the search for ideas. BOP has developed different
products for different segments depending on their business need and saving purposes.
The existing products are modifying by changing its features or product name etc. Mark
up rate on loan and interest rate on deposits always variables. In this regard circulars are
BOP aasaish scheme is successfully passing through the introductory stage and entering
into the growth stage. BOP people develop the products after identifying the core
consumer needs that the product will satisfy. They introduce the product after careful
48
segmentation and identifying the target market, Since their target market as they know is
going towards the aasaish loan, so BOP has introduced its aasaish loan scheme which is a
Pricing is one of the flexible elements of marketing mix. Usually the companies reduce
their prices to increase sales rather than convincing buyers that their product is worth a
price.
The function BOP is not only to set the price but there is a whole pricing structure that
changes over time as product move through their life cycles. Bank usually adjusts
products prices to reflect changes in cost and demand and to account variations in
environment.
The Bank Of Punjab changes its prices to meet the competition but only at that time when
the mark up of competitors change because of national changes in prices. Every customer
has to pay the same amount to buy the products of BOP aasaish products in Pakistan. It
means the company is following uniform delivered pricing strategy for all its products.
BOP aasaish loan first adopt market skimming price in the initial stage of the product, but
the changing occur in the market, now BOP aasaish loan scheme following the market
established.
Normally BOP focuses on small customers and set low prices for its products. Its charges
are low for its services comparatively other banks. Charges go to vary by HO order or by
49
6.4 Distribution Strategy
The process of making the product available to customers to right customers at right
places.
BOP aasaish loan product is using second level of distribution to make its products
Producer
Asaish Partner
Customers
Producer is PEL company manufacture home appliances then move to PLE (SAMD) sale
and marketing development department called aasaish partner as BOP finances aasaish
Distribution channel always keep in touch with the target customer and competitors as
well. They provide all the information to the organization, which contains problems and
competitors actions.
50
The distribution set up of aasaish scheme is very simple. The company after
manufacturing its products hand them over to the agents, which ultimately delivers then
In banking services there are no efforts required to distribute its products and services at
customer locations. Because all the purchasing & selling or receipts & payments are done
at POP or POS, called BOP cash counter, available cash officer to serve walking
BOP aasaish loan products have relatively low prices as compared to the other market
player like city bank and standredcharted. One reason for this low price is the short
distribution channel. BOP aasaish loan scheme uses intensive distribution strategy.
To move their products through the distribution channel from the point of mafucture to
Push Strategies are primarily defensive tactics designed to secure the cooperation of
retailers, gain shelf space, and protect the product against competitors. Trade promotion
and sales promotions aimed at numbers of the distribution channel are one of the
principal tactics marketers use to push products through the distribution pipeline and gain
shelf space. Pull Strategies on the other hand, are offensive tactics designed to attract
customers and increase demand for the product. Consumer advertising and consumer
sales promotions are examples of the pull strategies because they are designed to induce
consumers to seek out or ask for the product, in effect pulling product through the
pipeline.
51
BOP Personal Selling Techniques
Manager (R.M ) ascertains and then satisfies the needs of a borrower, to the mutual, long-
term benefits of both parties. The task of personal selling is a lot more than just making a
sale. The objective of personal selling is to build a relationship, a partnership that will
provide long-term befits to both the buyer and seller. In branches level Branch Manager
(BM) are responsible to visit daily or weekly visits the market to sell deposits and loan
products. In this regard BOP Head Office a format is issued to enter daily activity report
e. g. number of new accounts opened and depositing figure data on daily bases.
usually paid for and usually persuasive in nature, about products (goods, services, and
ideas) by identified sponsors through various media. BOP uses both advertising media
52
Door to Door Services
First-class Dressing
Excellency in Communication
Smart Working
The techniques of sales promotion are using in the BOP to motivate salesperson to
improve their performance and to induce consumers to purchase goods and services.
Although sales promotion works most closely with advertising, it is also related to other
experience
53
7.1 Successfulness of Product
There is a product call “Pehlay Munafa Scheme” which is introduced recently by BOP
Features
Advanced Profit
Failure of Product
New Product Business Trading Account called “BTA” became failure due to some
reasons:
Condition apply of average balance minimum Rs. 1,00,000/- per day for free
services.
Other banks are offering free services without average balance condition.
54
Following are the major competitor s of consumers banking sectors:
BOP expects its strong customer focus to drive the bank’s future business strategy. On
the domestic side bank has already launched its consumer banking business
The consumer banking is a key partner with other financial institution to meet the overall
needs in the most appropriate way. The words that sum up importance and urgency of the
work that consumer banking is doing “The consumer is waiting “. The high spending in R
& D reflects not only the long term commitment of the consumer banking in maintaining
a strong and competitive base world, but also the growing intensity of R & D in
consumer banking sector. The continuing consumer banking revolution will generate a
wide rang of even more effective products for many conditions which today are very
famous in the financial institution. The Bank of Punjab has a long standing in consumer
banking business and very bright future. It has along list of products in pipeline, which
55
8. SHORTFALL/WEAKNESS OF THE MARKSTING
DEPARMENT
Although the finance department is working well yet it has to improve in some areas. The
every year). This portfolio should be closely monitored to avoid non performing
its deposits. If Govt. decides to withdraw its deposit from The Bank, it will be
collapsed.
7. Although Deposits, Advances and assets of The Bank has been increased
more than all other Banks but its profit has not been increased with the same
ratio.
56
8.1 Marketing Operation Analysis Which Need to be Improved
1. Deposit Development
2. Advances
3. Recovery
Deposit Development
Deposit is as import for a bank as blood is to life. Deposit is the main source of growth.
In the BOP there is separate deposit development department at head office and its
Managers are responsible to procure deposit targets. There is no other person is deputed
for deposit development from the market. Only manager is designated for deposit
procurement.
Whereas many other banks depute Relationship Managers (RMs’) at branch levels to do
the best in market competition. Combined efforts are required regarding deposit
Secondly main source of deposit is govt. funds e.g. Provincial govt. departments. Fewer
57
Advances
There are different types of loan that a bank advances in the market.
Concerning officer are held responsible to go through all operations regarding marketing,
processing and recovering etc. There is no sales and marketing department separately.
This is why wholly market can not be benefited. BOP always prefers to govt. officials
Recovery
The main purpose of all operation is to earn profit instead losses. There may be
possibility to go default. Very hard efforts are required to recover default amount. In the
BOP there is no recovery department separately or other extra staff is hired for recovery
purpose in any way. Even concerning officer is not facilitated with recovery cost or
allowances. When loans are advanced in bulk quantity e. g. in BOP different kinds of
loans like aasaish, auto, house, RF, and cash loans are advanced. There must be a
58
8.2 SWOT ANALYSIS
Internal Strength
• The bank has stable growth in deposits since its emergence. Its 20 years long
• The loan facility provided by the bank is on sound basis. They have many checks
and documentation that secure their money after advancing. With their strategy
• Because of its 100 Domestic and 1 Overseas Branches they have very good
• The Bank Of Punjab has launched their products and varied services with
particulars brand names. Their popular bands are BOP (ATM Card), BOP (Car
• Another very important aspect of The Bank Of Punjab is its fast service. Every
thing goes very quickly. Like other banks customer do not have to wait for the
long time.
• The Bank Of Punjab has financial strength as they are gaining profit from the
services like electricity, wasa and gass bills, etc. The Bank Of Punjab as a
59
government bank provides many extra services like payment of salaries, pensions,
Internal Weaknesses:
level. Manager can’t take initiative regarding different decisions such that for
• The majority of people are not well aware about the products of the BOP.
• The Bank Of Punjab Management lacks innovation they introduce the same
• The Bank Of Punjab officer’s salaries are low as compared to other private banks.
• The Bank Of Punjab management has opted reactive approach they respond to the
market very slow and are reluctant to take initiative before the problem arise.
External Opportunities:
The Bank Of Punjab is established under Punjab Government Act in 1989. The purpose
of establishment of this bank is to manage government funds and dealing into the public
60
External Threats
• The rapidly changing environment in the banking sector and the quick response of
the other banks to these changes can be a threat for The Bank Of Punjab.
• As the name is The Bank Of Punjab, so it creates the concept that it is the bank
just operating in the Punjab province. Its more than 90% branches are in Punjab
province
• Competition can be the greatest threat for the The Bank Of Punjab. As new comer
banks are emerging as a strong entity and old banks have adopted invention so
The Bank Of Punjab will face a strong threat from this competition unless they
61
9. Conclusion:
The overall analyses of the organization reveals that the organization has not very strong
financial strength it is leading five big commercial banks in the market but growth of its
assets, deposits, advances and profit is some low. The new management is trying to give
U turn to financial results that have grown almost more times then base year 2008 and
since inspection of the current management. It is the best avenue for the investors,
contributing in revenue of the government of the Punjab each year. It has also contributed
in the growth of economy of the country by investing its funds in different sectors of
It has the best rating in credit AA in long term and A1+ in short term credits.
In nut shell, in future it will be the top commercial bank of the country.
62
10. Recommendation for Overall Improvement of The Bank i.e.
The Bank of Punjab is performing well. Its deposits are growing day-by-day and so
its profitability. The controlling body is responsible for the productive performance of
the bank.
Following are my observations and suggestion to improve the efficiency for the
2. Borrowers are not closely monitored regularly to avoid non performing loans.
As the loan portfolio of The Bank of Punjab is increasing, although its provision for
non performing loans is increasing but ratio of provision to total loans is decreasing.
63
The loan portfolio of The Bank should be scanned and more provision should be
Bank is accepting deposits at very high rate and its ratio of current deposit is low as
The Bank should immediately adopt some strategy to inject low cost especially
current deposit in its total deposit portfolio to lower its cost of deposit.
Another factor which is evident from the balance sheet is the Admin. Expenses of the
Bank became almost double in 5 years. It must be deceased to increase the profit of
The Bank.
At this time the share of Govt. Deposit is about 46% of the total deposit of The Bank
of Punjab.
While this is a big advantage to The Bank, it is also a main threat to The Bank.
If govt. changes its policy and shifts its funds to State Bank of Pakistan, then it will
Therefore, it is suggested that the Bank should adopt such polices to attract private
deposit also.
64
Introduction of Various Profitable Schemes
The people motivated to save money by offering the highest interest rates through
various investment schemes. The rate of profit should decrease 2% or 4 % more than
Training of Staff
Staff turnover particularly of trained staff result in financial and other losses. The
officer constitutes to beat till another officer should ready prove his work. The exodus
Most of the bank employees are sticking to one seat only with the result that they
become master of one particular job and loose their grip on other banking operation.
In my opinion all the employees should have regular job experience all out-look
Refresher Courses
Refresher courses for the staff are most important in any international organization.
All the employees should have these courses according to their requirement. Foreign
Every year some of the employees should be sent for training to other countries and
employees from other branches should be brought here. Some more reading material
65
should be provided the purpose should be to educate the employees with the advance
studies in their field. The employee should be provided the opportunities to attend and
Incentive to Employees
Bank should give some more incentive to its employees in order to remove the
conflict between lower and higher officers and should try to improve the working
Computer System
Though The Bank of Punjab installed computer yet the system has not totally shifted
on computer. Manual procedure is still there hence computer facility is not fully
It is human nature one goes behind reward and incentives while and try to avoid from
punishment. Like wise in commercial institution like bank this system should be
introduced with full force means achieve smart, educated skilled, self spoken and well
versed staff personal, should be reward and appreciated, while on the other hand lazy,
lethargic, heard, rough-dealers and ill mannered must be warned penalized and
punished but this all should be on merit and considering the policy of honesty is the
best policy and not due to some personal liking, disliking prejudice and patrimonial.
66
11. REFERENCES & SOURCES USED
2005,2006,2007,2008,2009
• www.bop.com.pk
67