Internship Report on Bank of Punjab 2009 by Kashif MBA Finance 03347019007

The Bank of Punjab

Department Of Management Sciences

Internship Report on the Bank Of Punjab

SUBMITTED TO: SUBMITTED BY:

Imran Khan Kashif Ilyas

( 76 )

MBA 4th (Afternoon)

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The Bank of Punjab

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The Bank of Punjab

Preface In Holly Quran Allah says “man finds nothing but for what he struggles “ Man is always erroneous. Struggle is only thing a man can do. Endeavors are in our hands but results are always in the hands of great Lord. Being a student of M.B.A (Finance) the task of this internship report on the Bank of Punjab was really a struggle demanding deed. The effort and struggle to my extent which we could make I done it, But as said “Results” let’s see what comes from it. Considering in mind the importance of Services Sector plays a vital role in the growth and development of our country’s economy, I decided to choose the organization (Bank Of Punjab) related to services sector. Role of banking sector in services industry is known to every one. So The Bank of Punjab is an organization which is finalized as my concerned organization because this is mainly performing the lot of services in all over the Pakistan. As this was my first ever practical experience. As I started the work in a state that I am ponder how to start it but now when I am writing these lines by the “Grace of God” My final report is finalized. The little incidents which took place during the preparation of this report are now part of my life memories.

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The Bank of Punjab

Acknowledgement First of all a great thanks to Almighty Allah, Who enable me to complete this task and then I am thankful to my Respected Teachers Especially our department Incharge (prof. Syed javed Iqbal Bukhari Sb.) for providing such a friendly atmosphere and guideline during our two year stay at the University not only for the Academic Affairs but all other social and future prospective by sharing their remarkable experiences.

It was such a pleasant Experience to Work in THE BANK OF PUNJAB I own my gratitude and thankful to all those who helped me in preparing this internship Report by sharing there best of knowledge.

It is due to endless efforts of my friends and fellow members at THE BANK OF PUNJAB who provided me every favor and the last but not the least I am really very thankful to my beloved parents who have always been a source of inspection for me.

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The Bank of Punjab

Dedication I want to dedicate my Report to Last and Ever Last Prophet of Almighty Allah,

Hazrat Muhammad (PBUH) And To the persons who are cause of my success, These are my Loving and Caring Parents Who are always sources of successes for me, And My thanks to them who have generously contributed her theoretical and practical knowledge to this report include. Without her understanding and support, completion of this work would not have possible. I hope people will find this report useful and the subject matter adds to their knowledge.

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The Bank of Punjab

Table Of Contents

Sr.No.

Description

1

Executive Summary

2

Introduction of the Bank

3

Hierarchy of the Organization

4

Functions of The Bank

5

Marketing Mix

6

Swot Analysis

7

Pest Analysis

8

HR Activities

9

My Activities in the Bank

10

My Limitations in the Bank

11

Performance of The Bank

12

Financial Analysis & Supporting Annexure

13

Suggestions & Recommendations

14

Conclusion

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The Bank of Punjab

Executive Summary: I have done my internship at The Bank of Punjab, Khanewal road branch Multan. There are four departments in the branch, and I worked as an assistant in that branch. For the first two weeks I worked in deposit department under the supervision of Mr. Arshad, where I have to perform following tasks: 

Entering information in KYC (know your customer) forms.



Scanning and arranging specimen signature cards.



Inform customer of essential conditions under which the account will be operated.

Afterwards I have learnt about vouchers, checking of vouchers is essential to confirm that correct calculation has been done. Vouchers are properly bind sealed, and checking by the manager. I have checked the following things: 

The check should not be post-dated/anti-dated.



Amount in words and figures tallies.



Cash paid stamps (with dates) are duly affixed in case of cash cheques and in case of clearing stamps is affixed.



Cutting/over writings are duly authenticated by the account holder, etc

Then another task for me was “issuing of cheques books”. It is one of the most interesting works that I have learnt in the bank. Cheques books should be issued only after all the formalities of the account opening forms, which have been checked by the branch manager. Maintaining Dispatch register and Inward Mailing register was also included in duties assigned to me. I also used to help different employees in their work. My work timings were from 9am to 5pm, six days in a week.

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The Bank of Punjab

Introduction Of The Bank The Bank of Punjab started functioning with the inauguration of its first branch of 7-Egerton Road, Lahore on November 15, 1989. The architect of the bank Mr. Nawaz Sharif then, the Chief Minister of Punjab, performed the inauguration. In Pakistan, over long periods of time the gap in saving and investment and balance of trade deficit has posed serious threat to the target levels of growth The ailments related to the budgetary deficit and public debt, both foreign and domestic are in addition. Interestingly even such adverse circumstances growth of real sector during the preceding year registered a favorable change, which speaks of hidden potential and strength of economy. Fortunately, the banking sector of the country has the well organized and properly institutionalized system, which is the major vehicle not only for mobilization of resources to finance trade, agriculture, and industry but also for the effective conduct of monetary policy. The emergence of new bank on the national scene in the early 1990s has done two important services to the nation.  The saving base of the economy has effectively enlarged and hence the investment opportunities

have increased.

 The services of the banks in the fact of severe competition have improved considerably so that now consumer are left with extensive choice to do or undo their business relations with these banks keeping in view quality of their services. The Bank of Punjab is working as a scheduled commercial bank with its network of 241 branches at all major business centers in the country. The Bank provides all types of banking services such as Deposit in Local Currency,

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The Bank of Punjab

Client Deposit in Foreign Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers. The Bank of Punjab has the privilege to discharge its responsibilities towards national progress and prosperity. Within the couple of years of its scheduling, the bank has not only carved out for itself prominent niche in the mainstream banking of the country but in certain areas it has the distinction of taking the lead. In the short span of time the Bank has been able to evolve a distinct corporate culture of its owned-based policies, which are realistic and are on highly professional footings.

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The Bank of Punjab

Constitutional Base: The Bank of Punjab was established under the provisions of Section 28 of Federal List included in the 4th schedule of the Constitution of the Islamic Republic of Pakistan 1973. The Bank was established under the Act of Punjab Assembly viz. The Bank of Punjab Act 1989. The Bill to this effect was passed by the Provincial Assembly on July 3, 1989 and was passed to, by Governor Punjab in accordance with the Provisions of the Constitution on July 26, 1989. The Act defines rules following. 1. Short title, extent, and commencement. 2. Establishment and incorporation of the Bank. 3. Share Capital. 4. Register of Shareholders. 5. Qualification of Shareholders. 6. Government to be shareholders. 7. Head Office of the Bank. 8. Board of Director. 9. Managing Director. 10. Qualification and disqualification of the directors. 11. Removal of Directors. 12. Terms of office of directors. 13. Vacancies. 14. General and special meetings. 15. Votes of the shareholders. 16. Business, which the Bank is authorized to transact. 17. Business, which the Bank is not authorized to transact. 18. Auditors / Governments auditors. 19. Right and duties of the auditors. 20. Liquidations of the Bank. Internship Report

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The Bank of Punjab

Scope of the Bank. Being a commercial Bank, The Bank of Punjab performs all such functions as are attributed to commercial banking institution both in the area of resource mobilization, loans, and investment. The Bank is thus providing all type of advances to business, trade, and industry on seasonal and annual basis, and is ensuring, through the prudent policy, the safety and protection of its loan portfolios, as the resources base of the bank expands, project financing will also be brought into its fold.

Management Of the Bank. At the level of Decision-making and implementation, senior management of the bank is drawn from highly accomplished bankers with rich experience in the banking profession both domestic and international. The entire responsibilities of policy formulation and management have been placed, under the law, with the Board of Director. Furthermore it will be heartening to know that Mr. Nawaz Sharif, during his chief Minister ship of The province of Punjab issued special instructions to the political and executives’ echelons not to interfere in The Bank of Punjab, thereby ousting the possibility any pressure which may be put on the management of the bank in respect of recruitment of staff or provision of credit. These instructions have become an essential part of the culture of the bank. 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. 3. To enter into financing contracts and to mobilize resources in local and now in foreign currencies consistent with the objects of the bank Internship Report

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The Bank of Punjab

Emblem. The sun rising over the five wavy lines symbolizes the dawn of new era of progress and prosperity for the land of five rivers and hence for Pakistan. Furthermore the main objectives of the inclusion of cotton flowers and the spikes of wheat in the emblem is firstly to represent the fact that the economy of the Punjab stands on its agriculture produces especially cotton and wheat and secondly to highlight the emphasis which the bank is to place on development of agro-based industry.

Subsidies and Sponsorships. The bank is one of the sponsors of Trust Management Services Pvt. Limited besides being a co-sponsor of Trust Modaraba a Modaraba company incorporated in Pakistan under the Modaraba companies and Modaraba (Floatation and control) Ordinance, 1980. Authorized Modaraba Fund and paid up Fund of the said unit in Rs. 500 million and Rs. 150 million respectively. The Bank is one of the sponsors of Trust Leasing Corporation Limited a public limited company established under the Companies Ordinances, 1984. Authorized paid up capital of the company is Rs. 250 million and Rs. 100 million respectively.First Punjab Modaraba Services (Pvt) Ltd. established in Pakistan under Companies Ordinance.1984 and register under Moderate Companies and Modaraba (Flotation and Control) Ordinance, 1980 is wholly owned subsidiary of the bank. Authorized fund of this Modaraba is Rs. 500 million where as paid up fund is Rs 200 million.

First Punjab Modaraba Service Ltd. The b a n k i s o n e o f t h e s p o n s o r s o f T r u s t M a n a g e m e n t S e r v i c e s P v t . Limited besides being a co-sponsor of Trust Modaraba a Modaraba company incorporated in Pakistan under the Modaraba companies and Modaraba (Floatation and control) Ordinance, 1980. Auth orized Modaraba Fund and paid up Fund of the said unit in Rs. 500 million and Rs. 150 m illi on respectivel y. The Bank is one of the sponsors of Trust Leasing Corporation Limited a public limited company established under the Companies

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The Bank of Punjab Ordinances, 1984. Authorized paid up capital of the company is Rs. 250 m illi on and Rs. 100 m illi on respecti vel y. First Punjab Modaraba Services (Pvt) Ltd. established in Pakistan under Companies Ordinance. 1984 and register under Moderate Companies and Modaraba (Flotation and C ontrol) Ordinance, 1980 is wholly owned subsidiary of the bank. Authorized fund of this Modaraba is Rs. 500 million where as paid up fund is Rs 200 million.

AWARDS AND ACHIEVEMENTS Excellence Award by the Central Board of Revenue The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in recognition of the contribution made by the bank towards Government exchequer. 3rd Kissan Time Awards In recognition of Bank's contribution in development and growth of agricultural sector, the Bank honoured with "Top Bank for Agriculture Loans" and "Best Bank Crop Insurance" under 3rd Kissan Time Awards year 2006 . Best Corporate Report Award 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 Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan. 16th Bolan Excellence Award The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in 2006. Achievement AwardThe Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006.

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The Bank of Punjab

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 programmed driven products & services in the Agriculture and Middle Tier Markets through a motivated team.

CORE VALUES  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.

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The Bank of Punjab

Hierarchical View of Management Haroonabad branch Total number of employees in Haroonabad branch where I did my internship is 11. The branch was headed by Branch manager Mr Abdalrauf Paracha. The flow of responsibilities and designations are shown in management’s hierarchy.

Branch Manager Operational Manager

Credit

Remittances

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Advances

Foreign Trade

Account Opening

Short-term loans

Import

Mortgage Loans

Export

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The Bank of Punjab

BOP Management Sr. No Designation President Secretrait 1 President 2 Deputy CEO Audit & Risk Asset Review 1 Group Head Audit & Risk Asset Review 2 Head Operational Audit 3 Head Risk Asset Review & BASEL Audit Commercial Banking 1 Head Commercial Banking Credit Administration 1 Head Credit Administration Division Deputy Head Credit Administration 2 Division Compliance & Internal Control 1 Head Compliance & Internal Control 2 Corporate & Investment Banking Head Corporate & Investment Banking 1 Group-I & Group-II Consumer & Agriculture Credit 1 Group Head Agriculture Credit 2 Head Consumer Banking Division Finance 1 Chief Financial Officer 2 Deputy Head Finance Human Resource 1 Group Head Human Resources 2 Deputy Head Human Resources Head / Principal Officer's Training 3 Institute

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Name Mr. Naeemuddin Khan Mr. Khalid Siddiq Tirmizey Mr. Ijaz ur Rehman Qureshi Mr. Abdul Rehman Mr. Shahzad Ahmad Cheema Mr. Liaquat Ali Mian Muhammad Sharif Mr. Shahnawaz Saeed Khan Mr. Irfanuddin Mr. Hafeez ud Din Mr. Khalid Qaiyum Mr. S.M. Atif Mr. Ahmed Razi Ghazali Mr. Nadeem Amir Mr. Muhammad Iqbal Shahzad Mr. Moghis Bokhari Mr. Naveed Hafeez Shaikh Syed Zaki Ahmad

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The Bank of Punjab

Category of the Services The services in The Bank of Punjab are classified in different categories.

Category A:  President  Executive Vice President (EVP)  Senior Vice President (SVP)  Vice President (VP)  Assistant Vice President (AVP)

Category B:  Officer Grade I  Officer Grade II  Officer Grade III  Cash Officer

Category C:  Clerical Staff

Category D:  Non-Clerical Staff

 Driver  Guards  Gate Keepers  Tea Boy

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The Bank of Punjab

Organizational Sttructure DIVISION

DEPARTMENTS



ADMINISTRATION



ORGANIZATION & METHODS



OPERATIONS



INFORMATIONAL &



BUSINESS DEVELOPMENT



CREDIT



OFFICERS TRAINING INSTITUTE



INTERNATIONAL



SHARES



FINANCE



LAW



RECOVERY



STATIONERY



AUDIT & INSPECTION



PLANNING RESERCH &



TREASURY

TECHNOLOGY

PUBLICATION

HEADED BY: -

HEADED BY: -

GENERAL MANAGER

CHIEF MANAGER

REGIONAL CHIEFS

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BRANCH NETWORK (273)

(273)

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The Bank of Punjab

Branc Network

Faislabad

(38)

Lahore

(73)

Gujranwala

(45)

Multan

(70)

Rawalpindi

(40)

Karach/Quetta (07)

Total (273)

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The Bank of Punjab

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The Bank of Punjab

G.M

Admin &Establishment

Officer’s Training Institute

This division deals with the problems relates to the staff administration. The main function of this department is to arrange a comprehensive training program for recruited staff. Others function includes:  Recruitment  Staff remuneration  Placing the staff  Providing and defining the opportunities development and growth  Devising and implementing services rules.

for

career

 Promotion and demotion  Suspension and termination  Transportation Internship Report

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The Bank of Punjab

 Security, health and benefits.

G.M Computer Dept: Stationary Dept: Maintenance Dept: O & M Department

This Division is concerned with the operational working in general banking, which is concerned with the routine working of the bank. Any problem or ambiguity arise in any branch working are rectified and suggested for correction by this division. This Division usually takes technical procedures involved the decisions like commissions. And also,  The maintenance of the existing building owned by the bank.  Opening new branches and their maintenance.  It also deals with the stationery problems of the bank.

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The Bank of Punjab

G.M

Marketing

PRP

Cell

Department

It is the other name of the marketing division. It promotes the bank cause i.e. deposits and work for the over all development of the bank. Deposits are the lifeblood of any bank. Without deposits bank cannot perform any function of banking. This division fixes the deposits target of every branch by keeping and eye over the potential customers in the area. It gives motivation to branches to achieve their targets through different campaigns and schemes like cash prizes and special increments. It publishes a bulletin in which those branches are encouraged who achieves their monthly targets. The main function is to develop and attract the customers and depositors. It also manages:  Advertising policy Internship Report

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The Bank of Punjab

 Sales promotion.  Schemes offered by the bank.

G.M

Agriculture Credit Wing

This division control over all credit operations like sanction of loans, Inland Bill Purchased (IBP) and also keeps check over securities mortgage, hypothecating or pledge. It also fix the rate of mark-up and other decisions concerning with the credit.

There is a credit committee, which consists of senior officers; Branches send the credit proposal to head office credit division. Credit committee approves it after making a through analysis. It also  Prepare the policies regarding the sanctioning loan  Monitor loans and credit  Look after the portfolio of the bank  Define credit limits against specified securities.

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The Bank of Punjab

G.M International wing

Forex Money Market Investment

Engg & Maintenance This division is providing important services to the bank regarding the matters of International Trade, Import, Export Letters of Credit, Travelers cheque etc.  It develops “Correspondent Relationship” with others on commission basis and this helps to deal with the clients having import export business.  It handles treasury operations.

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The Bank of Punjab

 The Marketing and Spot Inspection cell, which were introduced by the bank, are showing positive results in terms of achieving foreign currency deposit targets and other foreign related business.

G.M Balance Sheet Results Monitoring SBP affairs and Compliance Shares Dept.

Company Affairs

It controls the routine financial matters. The permission of special expenditure incurred in the branches, and other such cases. The daily position and HO Extracts are daily sent to this division by all the branches. This division not only estimates the profit and loss of every branch but also prepare overall income statement and balance sheet of the complete bank. It also keeps record of total deposits of the bank and then their classification in the form of loans into different sectors of economy. The basic functions are:  Monitoring the fiscal and financial policies of the bank. Internship Report

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The Bank of Punjab

 Deals in exploring means for investing surplus bank funds.  Maintenance and investment of Gratuity and Pension Funds of the employees.

G.M

Law Department

The recovery division, which was established in 1994 to assist in regularizing the difficult loan accounts, has rendered valuable services in this respect. To effect recoveries in an efficient manner, a policy has been framed in accordance with the guidelines issued by the State Bank of Pakistan Moreover, recovery cells at regional levels have been set up to assist the head office. This division looks after the matters of recovery of loans with the assistance of legal advisors.

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The Bank of Punjab

G.M

Audit of Branches

Rectification and Persuasion

This department ensures appropriate system of checks and balances. It checks all the irregularities, errors and forgeries if any, under the rules and regulations formed by the Government of Punjab. For this purpose it doesn’t only keep and eye on the branches in their vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has improved working at the branch level. It not only points out the discrepancies but also tries to solve it. Surprise audit maintain a good check on the over all working of the branch especially of the side of finance.

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The Bank of Punjab

GENERAL BANKING OF THE BANK OF PUNJAB DEPOSIT DEPARTMENT In modern times very few business enterprises are carried out solely with the capital of the owners. Borrowing funds from different sources has becomes an essential feature of today business enterprise. But in the case of a 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. To receive the deposit is the basic function of all commercial banks. 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.

NATURE OF DEPOSIT  Current or demand Deposits Internship Report

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The Bank of Punjab  Saving Deposit  Short Notice Term Deposit  Call Deposits  Fixed or Term Deposits

CURRENT DEPOSIT Current deposit are those which are payable to bank whenever demand by the customer. Bank doesn’t pay any profit on current deposits. There are of different scheme of saving deposits, which are classified under different duration purpose and rate of interest. Fixed deposits are those which are by the bank under the conditions that will not be payable on demand but will be payable under fixed or determinate future time date. SAVING DEPOSIT 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. SHORT NOTICE TERM DEPOSITS

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The Bank of Punjab 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.

CALL DEPOSIT Call deposits are the sorts of deposits, which are deposited with the banker against any tender. This is without interest deposit. This may be with interest provided the depositor has agreed to keep this amount with the bank for some fixed period.

TERM DEPOSIT RECEIPTS 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).

ACCOUNT OPENING SECTION Account opening is the first step towards establishing a relationship between the customer and the bank. The Bank of Punjab is offering basically two types of account: 

Current Deposit Account



Profit and Loss Sharing Account

The necessary condition for a customer, who wants to open an account with the bank, is introduction, which is preferably by the bank officers or any account holder of the bank. The different categories of accounts that are available are as under. 

Individual Account



Joint Account



Partnership Account

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The Bank of Punjab 

Limited Company Account



Clubs, Society, Association, or Trust Account



SNTD



TDR



Foreign Currency Deposit

ACCOUNT OPENING PROCEDURE The general banking department performs various functions among them the first and most important function is Account Opening. The bank reserves the right to open any account, which in its opinion is suitable as a customer. The process of opening an account is very simple and any body that would like to open his account could do it easily without any difficulty. 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 acceptable to both, the next step is official account opening. This begins with the Account Opening Register which can be thought as a customer’s master file. The manager records the necessary details into this register5 and allots an “Account Number” from this account opening register.

This register is

maintained for each type of accounts and the account numbers are allotted serially. After opening the account every applicant’s date is entered in the computer to maintain the safe record and application form is also safely put off, so that it can be available whenever it is needed. Checking officer is responsible to tally the manual data with computerized account opening file. For fix deposit only the application form is needed, which is prepared manually, because most of the procedures of fix deposit is done manually. Signature specimen card contains three signatures of the applicant, applicant account number, account type, branch code, and title of account. It will be attached with the

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The Bank of Punjab account opening form. Banker uses this card when he receives the cheque, he compares signature on the cheque with the Specimen card, for avoiding the frauds.

CLEARING DEPARTMENT 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 and the mutual claims of each bank on other and offset and a settlement is made by the payment of difference. Clearing system is help full for both the customer and saving currency, time and labor. Investments which are collected 

Cheques



Demand Drafts



Telegraphic transfers



Mail Transfers



Pay Order



Dividend Warrants

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 a fixed on these instruments these are two types of clearing! 

Outward Clearing

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The Bank of Punjab 

Inward Clearing

Inward clearing means the cheque drawn on BOP and outward clearing means the Cheques drawn on others

OUTWARD CLEARING The instrument collected or stored bank wise and a schedules is prepared separately for each bank mentioning the total number of instruments and the amount of the instruments. Then these are recorded in a register called “OUTWARD CLEARING REGISTER” then a main schedule is prepared showing the total number of cheque and their aggregate amount being presented in the clearing. The cheque/instruments are handed over the clearing branch. Central clearing branch issue CREDIT ADVICE to the branch for passing credit to its customer immediately. The branch on receiving credit advice debits the clearing account and credit the respective customer accounts. INWARD CLEARING On receiving cheque/instruments from central clearing branch, the in charge checks the number and amount of cheque received in clearing must tally with the main schedule received from central clearing branch. These cheque/instrument are entered in “INWARD CLEARING REGISTER” for the cheque/instrument passed in clearing is a credit advice for the aggregate amount of cheque passed in clearing is prepared, drawn on central clearing branch. RESERVES AT STATE BANK Deposit held by bank at SBP serves as check clearing and collection balances. Rather than physically transferring funds between banks, check clearing and collection can be done by simply debiting or crediting a bank’s account at SBP.

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The Bank of Punjab

REMITTANCE DEPARTMENT Remittance is a major function of the bank. It is the transfer of money from one place to another place. The need for remittance is commonly felt in commercial life particularly and in everyday life generally. By proving this service to the customers the Bank of Punjab earns a lot of income in the form of service charges. TYPES OF REMITTANCE The Bank of Punjab deals with the following type of remittances 

Demand Draft (DD)



Mail Transfer (MT)



Telegraphic Transfer (TT)



Pay Order



Now we discuss all these in detail:

DEMAND DRAFT (DD): Demand draft is a written order given by the one branch of a bank on behalf of customer to another branch of the same bank to a certain amount to the certain person. PROCEDURE 1) A draft voucher is filled which contains the following information Internship Report

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The Bank of Punjab 

Name of the parties involved



Date



Amount to be sent



Account number (if DD 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 of the two vouchers i.e. the debit and credit vouchers. 4) Then the cashier sends the cash receipt voucher to the accounts department and the account records the amount paid in his cash scroll. 5) Accountant gives the DD leaf along with the DD voucher to his assistant who records the sender’s name, amount and receiver’s name. After writing all the information in the DD register he gives it to the officer along with the DD for authentication. 6) After authentication the DD is handed over to the sender and bank sends the advice to the concerned branch. So when the party presents the DD in the concerned branch its payment could be made. PARTIES INVOLVED The following parties are involved in demand draft; 1) Purchaser or Sender The purchaser is the person who sends the money to a particular person payable at a certain branch. 2) Issuing or Drawing Branch The branch from where the demand draft is issued to another branch of the same bank. 3) Drawer Branch Branch in which the draft has drawn and called upon to pay the amount. 4) Payee Internship Report

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The Bank of Punjab The person who is entitled to receive the amount after presenting the demand draft in the drawer branch.

MAIL TRANSFER 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. 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. TELEGRAPHIC TRANSFER This is the most urgent method of remitting the money from one place to another place. This method is used when the sender desires to send urgently, in this case the sender request the manager of the branch to issue TT. Internship Report

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The Bank of Punjab

PROCEDURE For sending the TT the manager and officer apply a test. In the test the manager and officer uses a coding technique. They write their own code numbers, which is allotted, to them as the bank branch code. After making all the conformation the concerned branch makes the payment to the receiver. If the sender wants to convey the same message through telephone then he has to pay the charges of telephone along with the TT charges. First the person deposit the TT amount along with the charges through the credit voucher then his TT sent to the relevant branch. PAY ORDER A pay order is a written order issued by the bank on its own branch, drawn upon and payable by itself to pay a specified sum of money to the person. The purpose of a pay order is to transfer the fund from one place to another. It is usually not issued in favor of the parties of other cities. Usually the pay order is issued for the local transfer of money from one person to another or from the person to any other department. It is used for different purposes. The purpose may be the repairs of the branch or renovation of the branch. PROCEDURE The procedure of a pay order varies with the nature of the purpose. If the work is of huge amount then first the manager writes a letter to the Zonal Chief in order to get sanction of the work. Then the advertisement of the work is given in the newspaper in order to invite the contractors. But if the work is small then the branch manager has discretionary power to select the party whose rate is lowest. After finishing the work the contractor submits the bill of work on his stamp pad. Then the bank issues a pay order, against the pay order the contactor gets the amount from the issuing branch.

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The Bank of Punjab

.ACCOUNT DEPARTMENT Account department is the backbone of a bank. It plays a vital in performing different functions of a bank. The account department of is computerized as well as manual. 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 .

MANUAL FUNCTIONS OF ACCOUNTS DEPARTMENT Accountant prepares vouchers for all daily activities of different departments. Checking officer checks and tallies these vouchers with their daily transactions and posts their entries under proper heads. TYPES OF VOUCHERS 

Debit Voucher



Credit Voucher These two types of vouchers are again classified under following types: -



Cash voucher



Transfer voucher



Clearing voucher All the daily transaction in cash, transfer and clearing is done through these vouchers.

A sheet is prepared on which all the vouchers passed during one day are consolidated and Internship Report

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The Bank of Punjab summarized. This sheet is called supplementary sheet. There are two types of supplementary sheet. 

Daily paid voucher sheet



Daily receipt voucher sheet

Paid sheet is used for all debit vouchers and receipt sheet is used for all credit vouchers. CASH BOOK Cash book is prepared daily to keep the record of daily paid vouchers. Cash book contains the opening balance and the closing balance of a working day. Before writing and balance the cash book firstly there is needed to properly arrange all the vouchers of that day. MAINTAINING & UPDATING LEDGERS One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated after every month for estimating profit on customer’s accounts. Accountant prepares different ledger for all schemes of term deposit. With the help of TDR ledger accountant prepares “provisional ledger”. From this ledger accountant calculate the monthly product of each account and estimate the profit for a half-year. The semiannual profit on each account will be the expenses of branch.

COMPUTERIZED FUNCTIONS OF ACCOUNTS DEPARTMENT Most of the daily working is done through ledgers. In BOP all the daily transaction in deposit, cash, clearing, transfer, remittance and advance are performed these daily ledgers; accounts department receives the following output of general ledger. 

Daily general ledger expense



Daily general ledger income

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The Bank of Punjab



Daily general ledger assets



Daily general ledger liability



Daily general ledger circle expense



Daily general ledger audit expense The formats of all these ledgers are same. They contain the following head

account no. description, previous balance. Codes are assigned to all these items. Income will be credited in the branch account and expenses will be debited I the branch at the month end. All the expenses of circle, regional, audit, inspection office is debited in the head office account, because it is the responsibility of the head office to bear the expenses of its offices. For all the heads of general ledger there is closing balance and opening balance. These ledgers are helpful in preparing the daily, monthly, semiannually and yearly statements. Some of these statements are prepare for the purpose of record keeping of branches and some are prepared to send to the circle office, head office and state bank of Pakistan. Some of these statements are 

Statement of provisional income



Statement of provisional expense



Statement of head office account



Summary of income and expense



Statement of profit and loss on PLS account



Statement of profit and loss PLS 365 account



Balance confirmation report

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The Bank of Punjab 

Statement of affairs

BILLS DEPARTMENT This department deals in bills for collection for all kinks 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.

The four main heads of bill department is. 

Outward Bill for Collection (OBC)



Inward Bills For Collection (IBC)



Outward Documentary Bills For Collection

(ODBFC)



Inward Documentary Bills For Collection

(IDBFC)

OUTWARD BILLS FOR COLLECTION Bills department receive cheque or other of bills from its kinks client whose account must be opened in that branch. The branch forwards the check with schedule or covering letter to that branch on which bills is drawn. The checking officer of bills department will cross the cheque with special bank stamp before forwarding the cheque. OBC register is also maintained for proper record keeping of outward bills. This register is updated two times once at the time of receiving bill from clients and the other

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The Bank of Punjab when the confirmation advice of this cheque is received from the payable branch. Bank gets a commission Rs. 25/- and courier charges Rs. 40/- on the service. INWARD BILLS FOR COLLECTION 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.

OUTWARD DOCUMENTARY BILLS FOR COLLECTION Originating branch receives the documentary bills from their clients and sent them to out station branches of the same bank or other bank. Customer account must be opened in that branch. The documentary bills are i.e. trust receipt, railway receipt, sales invoice, receipts of courier service etc. bank gets as commission 0.35% plus postage charges plus courier service charges of this service. Seller and producer both can avail the facility of bank in case of selling and purchasing their product or goods. INWARD DOCUMENTARY BILLS FOR COLLECTION Bank receives the documentary bills from the other outstation branches of the same banks or other banks for collection the amount from purchaser. In this case back acts as a buyer’s bank, when bank receives the documentary bills they send intimation to buyer about his arrival of goods. If the buyer is the account holder then Internship Report

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The Bank of Punjab bank will debit his account otherwise purchaser deposits the amount of the bills. Bank hand over these documents to purchase, on behalf of which buyer receives the goods. Bank also charges commission

ADVANCES/CREDIT DEPARTMENT It is the loan function, which produces the major person of bank’s income, and as such it is the major areas of professional banker’s concern and attention. PRINCIPLES WHILE ADVANCING Basically there are five principles that must be duly observed while advancing money to borrowers. 

Safety



Liquidity



Disposal



Remuneration



Suitability

FORMS OF LENDING Many there are two types of advances: 

Short-term (maturity within one year)



Long term (maturity with the period of more than one year)

However they are further classified as: 

Running Finance



Demand Finance



Cash Finance



Letter of Guarantee

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The Bank of Punjab

RUNNING FINANCE This form of finance was previously known as “overdraft”. When a customer requires the temporary accommodation, his bank allows withdrawal his account in excess of credit balance, which the customer has in its account, a running finance occurs. The accommodation is thus allowed collateral security. When it is against collateral securities, it is called a “Secured Running Finance” and when the customer cannot offer any collateral security except his personal security, accommodation is called a “Clean Running Finance.” The customer is in advantageous position in running finance because he has to pay the mark-up only the balance outstanding against him on daily product basis. DEMAND FINANCE This is common form of financing to commercial and industrial concerns and is mad available either against pledge or hypothecation of goods produce or merchandise. In Demand Finance the party is financed up to a certain limit either at

once or as and when required. The party due to facility of paying mark-up only on the amount it actually utilizes prefers this form of financing . 

Ordinary Shares



Preferred Shares It can be



Quoted or Unquoted

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The Bank of Punjab 

Registered



Bearer



Inscribed

Securities for Advances:  Pledge  Hypothecation  Guarantee  Indemnity  Charge  Advances against “ Stock Exchange Securities  Advances against immovable property “Mortgage”

Pledges: “The bailment of goods as security for the payment of the debt and the performance of a promise is called pledge” Pledge is the characteristic mode of taking goods as the security and the pledge occurs when the goods or document of the title thereto or the securities are delivered by the customer to his banker to be held as security for the repayment of the advance. Internship Report

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The Bank of Punjab

In a pledge, the ownership remains with the pledger but the pledgee has the exclusive possession of the property until the advances in repaid in full, while in case of default the pledgee has the power of sale after giving due notice. People with the safe custody of goods, when entrusted with the goods for the specific purpose may not make the valid pledge.

Hypothecation: “A legal transaction where by goods may be made available as the security for a debt without transferring either the property or the possession to the ledger.” When the property in goods is in charged as the security for a loan from the bank but the ownership and the possession is left with the borrower, the goods are said to be hypothecated. The essence of the hypothecation is that neither the property in the goods nor the possession of them passes to the lender, but the security is guaranteed by means of Letter of Hypothecation, which usually provides for a banker’s charge of the hypothecated goods.

Guarantees: Internship Report

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The Bank of Punjab

“A contract to perform the promise, or discharge the liability of the third person in case of his default” This is so when an application for the advances cannot offer any tangible security, the banker may rely on the personal guarantees to protect himself against loss and advances or overdraft to the applicant. Therefore a guarantee may be either written or Oral. The Grantee is a promise by one person called the guarantor or security to another for answering the present or future debt if a second person called the “Principal Debtor”.

Indemnity: “A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself or by any other person is called the contract of indemnity” Thus in an indemnity, the promisor is the only person who becomes liable to the promise if the latter suffers a loss on account of his doing something at the express desire of the former.

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The Bank of Punjab

Charges: When immovable property of one person is by act of parties, or operation of law, made security for payment of money to another, and the transaction does not amount to mortgage, the latter person is said to have the charge on the property, and all the provisions herein before contained which apply to a simple mortgage shall, so far as may be apply to such charge.” This means that a charge is a right of payment out of certain property. The charge can be created by the act of parties or by the operation of the law and although the property is made a security the payment of loan, is still not he mortgage.

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The Bank of Punjab

Advances against Stock Exchange Securities: Stock Exchanges Securities is the vast term which covers all gilt edged securities such as:  Federal and Provincial Government Bonds  Post trust or Municipal Bonds  Shares and debentures Banker, as security for advances to the customer, frequently accepts these securities. Advances can be against:  Preference Shares  Ordinary Shares  Preferred Shares It can be  Quoted or Unquoted  Registered  Bearer  Inscribed

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The Bank of Punjab

ADVANCES AGAINST IMMOVABLE PROPERTY A mortgage is the transfer of and interest in specific immovable property for the purpose of securing the payment of the money, advanced or to be advanced. By way of loan, and existing debts or the performances of the engagement this may rise the pecuniary liability. The transfer is called the ‘mortgager’ and the transferee the ‘mortgagee’ the principal money and interest of which payment is secured for the time being and instrument by which the transfer is effected, is called the letter of the mortgage deed. Availability of adequate flows of credit for industry and agriculture are a sine qua non for the growth and development of an economy. This acquires added importance when agriculture is the mainstay of the economy as also the sector where the bulk of the poor are concentrated. Growth and productivity in Pakistan's agriculture has slowed down in recent years and is, therefore, of serious concern given its importance for the economic prosperity of the country. Apart from various other weaknesses in the infrastructural support of the agricultural sector, inadequacy and lack of efficacy of credit, flows to support agriculture related activities has been a major constraining factor. Agriculture is the largest sector of the economy. It contributes 25 percent to GDP, provides raw materials to 80 percent of industry and employment to over 50 percent of the population. This is a sector that has the shortest gestation period for investments and, therefore, a remarkable capacity to bring about a turn around in the economy. This important sector in Pakistan is suffering from a number of maladies and is consequently witnessing stagnation in productivity. Due to policy and administrative exigencies, the savings in the agriculture sector remain low and, therefore, the sector has perpetually remained capital starved. The pricing of input and output in agriculture over the years has forced the majority of farmers in Pakistan to plough back their incomes into agriculture and non-institutional credit, and has more often than not served to sap their potential earnings. Needless to say, that shortage of savings and lack of availability of capital is one of the major reasons for Internship Report

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The Bank of Punjab poverty in the country. The agricultural and rural sectors in Pakistan in general and in Punjab in particular are, therefore, suffering from severe under-development. Under a desirable development model, Punjab can: 

Increase agricultural production to meet the country's requirement of essential foods items and industrial raw materials.



Develop agro-based industry in the rural sector for economic value addition;



Generate additional employment opportunities in rural as well as adjacent small towns/cities



Control massive migration to the urban centers that in turn is causing a number of social, administrative (i.e. law and order) and economic problems for the urban areas



Elevate poverty and improve the income generating capacity of the agri-based population.

AGRICULTURE SCHEME There are many agriculture promotion schemes provided by BOP. 

Green Tractor Lease Finance Scheme



Agri Finance Branches



Agricultural Finance Scheme



Kissan Dost Tractor Scheme



Second Hand Tractor Lease Finance Scheme



Kissan Dost Aabiari Scheme



Kissan Dost Mechanization Support Scheme



Kissan Dost Farm Transport Scheme



Kissan Dost Eslah-E-Arazi Scheme



Kissan Dost Live Stock Development Scheme



Livestock Breed Improvement Trough VVW



Kissan Dost Commercial Agro Services

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The Bank of Punjab 

Kissan Dost Agri Mall Finance Scheme



Corporate Farming Finance Scheme



Commercial Lease Finance Tractor Scheme



Demand Finance-Sheds Construction and Civil Works



Lease Finance Facility for Milch Animals



Running Finance-Livestock/Poultry and Fish Farms



Kissan Dost Model Dairy Farms (PDDC)



Kissan Dost Model Milk Collection Center (PDDC)



Kissan Dost Green House Finance Facility



Kissan Dost Cold Storage Finance Facility



Scheme for Controlled Sheds



Lease Finance Facility for Installation of Biogas Plant



Group Financing to Small Farmers



Clean Credit Facility through Syngenta Franchisees



Zarkaashat Drip Irrigation System



Markup of Schemes

BUSINESS PROMOTION SCHEME 

BOP Quick Cash



BOP Car Loan



BOP House Loan



BOP SME Loan



BOP Assaish Loan



BOP House Loan For Federal Govt

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The Bank of Punjab

SERVICES 

Commercial Banking



Corporate & Investment



Cash Management Services



Utility Bills



Lockers 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. Commercial Banking will deal with customers having sales turnover and aggregate credit exposure as per benchmarks prescribed in the SBP’s Prudential Regulations.

This Group’s emphasis will be to meet necessary business needs of customers which are numerous as compared to CIB clients but their individual credit requirements are relatively much smaller. In view of this peculiar nature of this business segment that involves a higher turn over a much wider network is needed. The SME will concentrate on rebuilding its set up which suits to its peculiar needs on all locations. CORPORATE & INVESTMENT BANKING Corporate Banking The BOP Corporate Banking endeavors to market new clients and retain the existing relationships and build market share by offering superior services, competitive pricing and wide product range to valued corporate clients including Public Sector Entities and Internship Report

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The Bank of Punjab Multi National Companies. BOP facilitates its customers for all sorts of their banking needs including working capital, trade finance, BMR and project financing etc. BOP has worked on some of the local markets’ largest and most complex transactions and infrastructure projects. The BOP Corporate Banking Group comprises of seasoned relationship management team to meet the demanding service standards of large corporations. The group delivers a full range of high quality advisory, financing and operational service solutions tailored according to customers’ needs. Investment Banking The investment Banking Group is entrusted with the prime responsibility of developing and executing investment banking strategy to enhance and maximize shareholder value and customer confidence. IBG specializes in providing innovative and unique advice to its clients to assist them in meeting challenges in an ever-changing market. The team of qualified professionals operates under a strict risk management framework, following best practices within their fields and continuously striving for excellence. Investment Banking Unit offers full spectrum of services, which include TFCs, Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance,

Quasi-Equity Products, Independent Advice, Equity Placements, IPOs, Equity Underwriting, Mergers, Corporate Restructuring, Acquisitions and other products. IBU also works on and come up with providing Fund Management Facilities CASH MANAGEMENT SERVICE Cash Management is a process of collections & payments on behalf of the Customers using the Bank Network.The objective is to faciliate organizations with multiple collection points in gathering Cash / Funds and making them available in the customer

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The Bank of Punjab operating Account. Similarly it facilitates disbursement of frequent and or Bulk payment to multiple locations. This should be accomplished with minimal supervision by the customer, supported by an automated system to provide timely and requisite MIS / Reconciliation under agreed Service Levels UTILITY SERVICE Customers can pay their utility bills e.g. electricity, water gas, telephone, mobile, at any of our 272 branches across Pakistan. For your convenience bills are collected on all working days from 9:00 am to 5:00 pm (Monday to Friday) except lunch & prayer breaks and from 9:00 am to 1:30 pm on Saturday. You can also pay your bills by availing our drop box facility. Just drop your Cheque along with bill at your branch and collect the receipt in the evening, avoid the hastle of standing in queues and save your precious time BOP LOCKER Discover peace of mind, enjoy personalized service and operate your locker in a friendly and pleasant environment at The Bank of Punjab.

Locker Size

Annual Fee

Small

Rs.1,200

Medium

Rs.1,800

Large

Rs.3,000

Extra Large

Rs.6,500

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The Bank of Punjab

These are the other services provided by the BOP. 

ATM Facility



On-Line Banking



Lockers Facility



Demand Drafts



Letter of Credit



Pay Order



Mail Transfer



Debit Card



Collection of Utility

AUTOMATED TELLER MACHINHE Through the ATM’s Customers have access to the various services such as withdrawal, balance enquiry and mini statement? Complete security is ensured because access to the account is only possible by entering a four digit personal identification number (PIN) known only to the account holder. Cash withdrawal limit is up to Rs.20, 000 per day. Annual charges of ATM is Rs.250/- per card. ONLINE 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

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The Bank of Punjab It is one of the utility services that BOP provides to their customers for keeping jewellery, important documents and other valuables.

DEMAND DRAFT 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.

LETTER OF CREDIT BOP is offering its business customers the widest range of option in the area of money transfer. BOP’s letter of credit service is with competitive rates, security, and ease of transaction, BOP Letter of credit is the best way to do the business transactions. 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. MAIL TRANSFER Moves money safely and quickly from BOP Mail Transfer service. The rates for this service is quiet impressive as compare to the market.

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The Bank of Punjab

DEBIT CARD BOP Apna Cash Card is an ATM plus Debit Card. 1. The front of the card will have the following matter on it: 

Card Holder’s Name



International Bin Number (6 Digits - XXXXXX)



Magnetic Strip



Signature Panel



Conditions of Usage



M-Net and M-Net logo

LIMITATIONS 

Any non-personal account i.e. Companies, Organizations, Trust Account, Government account and Collection account etc.



Dormant, inoperative, blocked or restricted accounts.



Accounts with “NIL” balance.



Term Deposit Accounts.



NIDF Accounts. (Non Interest Demand Finance Accounts)



Accounts requiring thumb / photo for operation (illiterate accounts) · ATM/Debit cards can only be issued on local currency accounts.

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The Bank of Punjab

MARKETING MIX “The set of marketing tools that the firm uses to pursue its marketing objectives in the target market”.

FOUR P‟s OF MARKETING MIX Marketing Mix is a Combination of Four P’s. Product, price, promotion and place. 1) Product Service Provided by Bank 2) Price Commission and Bank Charges Received 3) Promotion Promotion of Services 4) Place Placement of Services i.e. Network of its Branches

PRODUCTS / SERVICES Due to trend setting and innovative banking, Punjab Bank presents a range of quality products with revolutionary perks and convenience. BOP provides a wide range of products/ services to its customers, which can be compared with any foreign, or national bank in terms of quality and reliability. Here is an overview of different products and services formulated by Punjab Bank.

Products Offered By Bank Of Punjab

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The Bank of Punjab

House Loan

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The Bank of Punjab

Particulars Bank’s Policy About Scheme “BOP House Loan is a long term finance facility for    

Purchase of house/flat Purchase of Plot & Construction thereon Construction of house on self owned plot Renovation/home improvement

provided for personal use only Features Target Market  Salaried Individuals (SI)  Self Employed Professionals (SEP)  Self Employed Businessmen (SEB) Finance Amount

MAXIMUM DEBT / AMOUNT EQUITY Purchase & No Limit as per Not to construction of House 300,000 debt burden of the exceed 70% / Flat or Construction customer of FSV Home Improvement / No Limit as per Not to 200,000 Renovation / debt burden of the exceed 30% Additions customer of FSV The Monthly Instalment should not exceed 50% of monthly net income.

Tenure

Purpose HOUSE/ FLAT PURCHASE

PURPOSE OF LOAN

MINIMUM AMOUNT

Minimum Maximum 03 20 YEARS YEARS 20 years with maximum 12 months 03 grace period, during this period mark CONSTRUCTION YEARS up will be on the finance from first draw down HOME 03 07 YEARS IMPROVEMENT YEARS

Mark up Rate TENURE

MARK-UP RATE

AAvg. 3 Years ask side 3 to 20 Years, KIBOR + 375 bps with or as per MOU floor of 16% p.a. Internship Report

FREQUENCY OF CHANGE OF MARK-UP RATE Fix for 3 Years & revise after every 3 years 62

The Bank of Punjab Charges Details

Processing Charges = Upto Rs. 2(M) Rs. 4000/- per case == Above Rs. 2(M) to Rs. 4(M) Rs.5500/- per case = Above Rs.4(M) Rs. 6500/- per case E-CIB Charges = Rs.300/- per case Guarantor e-CIB Charges = Rs.50/- per report Documentation Charges = Actual Legal Fee = Actual Valuation = Actual Mortgage Charges/Fee = Actual

Pre-Payment NO Prepayment Penalty Penalty Late Payment Cheque returned/ Over 20 Days Past Penalty Principal Instalment delayed upto Due on principal Amount 20 days per amount on daily cheque/instalment product basis Additional markUpto Rs Rs.500/up @ 1% + 2.50 (M) Rs.500/Upto Additional markRs.5.00 Rs.1,000/up @ 1% + (M) Rs,1,000/ Additional markOver Rs Rs.1,500/up @ 1% + 5.00 (M) Rs.1,500/ Insurance Property insurance (if loan amount exceeds value of end) and life insurance of borrower for loan amount will be mandatory Eligibility Criteria ELIGIBILITY CRITERIA FOR SALARIED

INDIVIDUALS (SI) 

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Age between 25 and 60 Years or retirement date; whichever is earlier (60 Years at maturity of facility) 63

The Bank of Punjab  

  

Minimum Take Home Salary is Rs. 10,000/Permanent. Employee with Minimum 03 Years of continuous job Experience including 01 year with current employer. (02 Year for BOP Employees including probationary period). Maintaining Salary Account in any bank. Have valid CNIC Residing or working in launching cities.

ELIGIBILITY CRITERIA FOR SEP/SEB   

  

Security of Loan

Documents Required

        

Age between 25 and 60 Years or retirement date; whichever is earlier (60 Years at maturity of facility) Minimum 03 Years in current business. Minimum Monthly Net Income is Rs. 20,000/- (Established through Tax Return or Income Estimation Report of outsourced agencies or Bank Statement). Have valid CNIC Residing or working in launching cities. Tax Payer House/Flat purchased. Plot on which construction is to be carried out. House on which renovation is to be carried out. 10 % Token Registered Mortgage Equitable mortgage for the full marked up amount Noting of charge in revenue record Life Insurance of the borrower assigned in the name of Bank Insurance of property Three undated cheques for the marked up loan amount (principle + mark-up)

FOR SALARIED PERSON      

Copy of valid CNIC Latest Salary Slip / Employer Certificate on organization’s letter head (as per BOP specimen) Two Recent Photographs Bank Statement for last 6 months Latest Copy of utility bills (Electricity & phone) Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer

FOR SELF EMPLOYED BUSINESSMEN / PROFESSIONAL Internship Report

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The Bank of Punjab

     

CNIC Two Recent Photographs Bank Statement for last 01 Year of Business Accounts Latest Copy of utility bills (Electricity & phone) of Residence Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer Copy of Rent agreement if living in rented house

BUSINESS RELATED DOCUMENTS.       

Latest copy of utility bills (Electricity & phone) of current business address. Documentary evidence in business or in the profession for the last 05 years. Proprietorship Certificate/Partnership deed Copy of Professional Degree (For Professionals) Title document or rent deed of the office If office premises moved in the last 3 years details and evidence of last office premises Copy of professional degree for self-employed professionals

BUSINESS FINANCIAL DOCUMENTS.    

Income Tax Return/Wealth Tax Statement BOPance Sheet Profit & Loss Statement Any other documents

PROPERTY RELATED INFORMATION TO BE PLACED WITH THE BANK AS SECURITY      

Internship Report

Copy of Title document of the property. Copy of approved building plan and completion certificate of house. Copy of property tax payment receipt (PT1/PT 10) NEC Any other documents advised by legal counsel NOC to mortgage leasehold property to the bank should also be obtained from the respective LESSOR (if applicable) and to ensure that there are no restrictive covenants in the Lease Agreement / Deed. NOC to mortgage from concerned society

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The Bank of Punjab

Car Loan

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The Bank of Punjab Particulars Bank’s Policy About Scheme A lease facility for the purchase of vehicles for personal use. Features Target Market  Salaried Individuals (SI)  Self Employed Professionals (SEP)  Self Employed Businessmen (SEB) Finance Minimum: Rs. 200,000/Maximum: 5,000,000/Amount Tenure Minimum: 01 Year Maximum: 05 Years Mark up Rate Tenure Mark-up Rate Avg. 1 Year ask side KIBOR + 400 bps with 1 year floor of 17% p.a. Avg. 2 Years ask side KIBOR + 400 bps 2 Years with floor of 17% p.a. 3&5 Avg. 3 Years ask side KIBOR + 400 bps Years with floor of 17% p.a. Minimum Govt. / BOP Employees Pvt. Employees SEP/SEB Equity 10% 15% 20% Down Payment Charges Details

Equity + Processing Charges + First Year Insurance + First Monthly Instalment Processing Charges = Rs. 5,000/E-CIB Charges = Rs.300/- per case Guarantor e-CIB Charges = Rs.50/- per report. Documentation Charges = Actual Insurance Rate = 4% from Insurance company on bank’ panel

Registration Charges = Actual. Payable directly by the customer Pre-Payment Pre-payment penalty @5% on principal outstanding .However, If the Penalty customer repays in order to obtain finance for new vehicle no penalty may be charged. Debt Burden The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income. Late Payment 5% on the amount of instalment Maximum Rs. 1000/- + Cheque Penalty Dishonouring Charges (as per schedule of charges of the bank) Internship Report

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The Bank of Punjab Eligibility Criteria

ELIGIBILITY CRITERIA FOR GOVT. EMPLOYEES & BOP EMPLOYEES    

  

Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 10,000/Permanent Govt. Employee with Minimum 03 Years of job Experience. (01 Year for BOP Employees). Contractual Employees are also eligible but loan should be adjusted before 06-months of the expiry of contract. Moreover, departmental undertaking / one Personal Guarantee of Govt. Employee of grade 17 & above shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip/Employer Certificate/Bank Statement of salary account showing monthly credits of salary amount). Maintaining Salary Account in any bank. Have valid Driving License & CNIC Residing or working in launching cities.

ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES      

Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 15,000/Permanent Pvt. Employee with Minimum 03 Years of job Experience including 01 year with current employer. Maintaining Salary Account with any bank. Have valid Driving License & CNIC Residing or working in launching cities.

ELIGIBILITY CRITERIA FOR SEP/SEB   

 

Documents Required

Age between 25 and 57 Years or retirement date; whichever is earlier (57 Years at maturity of facility) Minimum 03 Years in current business. Minimum Monthly Net Income is Rs. 20,000/- (Established through Tax Return or Income Estimation Report of outsourced agencies or Bank Statement). Have valid Driving License & CNIC Residing or working in launching cities.

FOR SALARIED PERSON

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The Bank of Punjab

     

Copy of valid CNIC Latest Salary Slip / Employer Certificate on organization’s letter head (as per BOP specimen) Two Recent Photographs Bank Statement for last 6 months Latest Copy of utility bills (Electricity & phone) Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer

FOR SELF EMPLOYED PROFESSIONAL /BUSINESSMEN     

Copy of CNIC Two Recent Photographs Bank Statement for last 01 Year of Business Accounts Latest Copy of utility bills (Electricity & phone) of Residence Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer

BUSINESS RELATED DOCUMENTS.    

Security

   

Internship Report

Latest copy of utility bills (Electricity & phone) of current business address. Documentary evidence in business or in the profession for the last 2 years. Proprietorship Certificate/Partnership deed Copy of Professional Degree (For Professionals) Car will be registered in the name of Bank as per lease agreement. Comprehensive Insurance Policy (Insurance Certificate/policy will be sent directly to the branch by the Insurance Company). Post Dated Cheques as per the repayment schedule. Three (03) undated cheques of marked up amount (Principal + Mark-up) Any additional guarantee, if required as per the contents of the approval letter

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The Bank of Punjab

Asaish Loan

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The Bank of Punjab

Particulars Bank’s Policy About Scheme "BOP Aasaish Loan is personal loan facility for bank’s target market for the purchase of Consumer durable goods for their personal use, repayable on easy instalments" Features Target Market  Salaried Individuals (SI)  Self Employed Professionals (SEP)  Self Employed Businessmen (SEB) Brands/ Products

All renowned brands including PEL, LG, Sony, Samsung etc. for all products like Refrigerator, TV, Microwave Oven, AC, Washing machine etc.

Down 0% Payment Tenure / Loan Amount / Mark-up Rate

Charges Details

Tenure

6 months 9 Months 12 Months 18 Months 24 Months Processing Charges = Rs. 500/- per case

Mark-up Rate (Reducing BOPance method) 0% 8% p.a 11%p.a. 15%p.a. 18%p.a.

E-CIB Charges = Rs.125/- per case Upto Rs. 100,000/Rs.200/- per case over Rs. 100,000/-

Debt Burden

Documentation Charges = Actual The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income.

Pre-Payment No Penalty Penalty Late Payment 3% on the amount of instalment per day for the days the amount remains Penalty overdue Max. Rs. 500/- + Cheque Dishonouring Charges (as per schedule of charges of the bank) Eligibility Criteria Eligibility Criteria for Govt. /Armed Forces/BOP

Employees  

Internship Report

Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs.7,000/71

The Bank of Punjab  

 

Permanent Employee with Minimum 01 Year of job Experience. Contractual Employees are also eligible but loan should be adjusted before 03-months of the expiry of contract. Moreover, departmental undertaking / one Personal Guarantee of equivalent or senior grade shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip or Employer Certificate or Bank Statement of salary account showing monthly credits of salary amount). Maintaining Salary Account in any bank. Have valid CNIC

Eligibility Criteria for Private Employees     

Age between 24 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 10,000/Permanent Pvt. Employee with Minimum 02 Years of job Experience including 01 year with current employer. Maintaining Salary Account with any bank. Have valid CNIC

Eligibility Criteria for SEP/SEB     

Documents Required

Age between 25 and 57 Years or retirement date; whichever is earlier (57 Years at maturity of facility) Minimum 02 Years in current business. Minimum Monthly Net Income is Rs.15,000/- (Established through Tax Return or Financial Statements or Bank Statement). Have valid CNIC Residing or working in launching cities.

For Govt. /Armed Forces/BOP Employees     

Internship Report

Copy of valid CNIC Latest Salary Slip (Employer Certificate, if salary slip is not provided by employer) Employer Certificate on organization’s letter head (as per BOP specimen) – Bank Statement for last 06 months (where salary is being transferred). Latest Copy of utility bills (Electricity & phone) (of present living address).

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The Bank of Punjab

For Private Employees       

Copy of valid CNIC Two Recent Photographs Latest Salary Slip (Employer Certificate, if salary slip is not provided by employer) Employer Certificate on organization’s letter head (as per BOP specimen) Bank Statement for last 06 months (where salary is being transferred). Latest Copy of utility bills (Electricity & phone) (of present living address) Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer – In case of non-tax payee, one personal guarantee is required. one Personal Guarantee of equivalent or senior grade shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip or Employer Certificate or Bank Statement of salary account showing monthly credits of salary amount)

For self employed business professional     

Copy of valid CNIC Two Recent Photographs Bank Statement for last 06 months of Business Accounts Latest Copy of utility bills (Electricity & phone) of Residence Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer. In case of non-tax payee, one personal guarantee is required.

Business related documents.    

Security

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Latest copy of utility bills (Electricity & phone) of current business address. Documentary evidence in business or in the profession for the last 2 years. Proprietorship Certificate/Partnership deed Copy of Professional Degree (For Professionals) Post Dated Cheques Life Insurance of Borrower. Three (03) undated cheques of marked up amount (Principal + Mark-up) Any additional guarantee, if required as per the contents of the approval letter. 73

The Bank of Punjab

BOP ATM / Debit Card

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The Bank of Punjab

BOP Apna Cash Card is an ATM plus Debit Card. 1. The front of the card will have the following matter on it:   

Card Holder’s Name International Bin Number (6 Digits - XXXXXX) Card Number (YYYYYYYYYY) (total IMD+CARD num has to be = 16

2. The back of the card will have:    

Magnetic Strip Signature Panel Conditions of Usage M-Net and M-Net logo

1. 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 Point of Sale (POS) terminals:

1.1.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, your account is directly debited.

1.2.BOPance Enquiry The Point of Sale (POS) terminal also lets you view your BOPance of all the linked accounts to your card.

2. Sites BOP Debit Card Holders can transact at any of M Net merchant locations country wide. These POS terminals are available at Shopping Malls to Petrol Stations. The list of country-wide merchants is attached as Annexure I. All merchants who display the M-Net logo will accept the BOP Debit Card.

3. Plastic with M-Net logo All new plastic that will be ordered from now on will bear the M-Net logo. The existing plastic will be used for customers who want the debit card facility, as the cost of the wastage of scrapping our existing stock is too high. Merchants will have to be informed to accept all BOP plastic, irrespective of M-Net logo. New order of plastic will bear M-Net logo.

4. Customer Eligibility Internship Report

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The Bank of Punjab The ATM Card will be issued to Savings and Current Account holders who maintain their accounts with the bank and in terms of the account opening documentation are authorized to operate the account singly or jointly. For Joint Accounts, which are operated on the signature of any one of the account holders, ATM / Debit card can be issued. The joint accountholders will be jointly & severally liable for any transactions processed by the use of the cards and the terms and conditions as laid down shall be jointly & severally binding on all account holders. Cards will not be issued on the following accounts:      

i. Any non-personal account i.e. Companies, Organizations, Trust Account, Government account and Collection account etc. ii. Dormant, inoperative, blocked or restricted accounts. iii. Accounts with “NIL” BOPance. iv. Term Deposit Accounts. v. NIDF Accounts. (Non Interest Demand Finance Accounts) vi. Accounts requiring thumb / photo for operation (illiterate accounts) · ATM/Debit cards can only be issued on local currency accounts.

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The Bank of Punjab

Smart Cash Personal Loan

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The Bank of Punjab

Particulars Bank’s Policy About Scheme “BOP Smart Cash Personal Loan Scheme is personal DF facility for meeting personal needs & repayable through monthly instalments.” Features Target Market  Salaried Individuals (SI)  Self Employed Professionals (SEP) Finance Amount

Equivalent to 25 Net take home salaries/ income, maximum limit Rs.500,000/Minimum amount Maximum amount Rs.500,000/Rs.50,000/(Rs.1.0 Million on selective basis)

Mark-up Rate

Tenure 1 year 2 Years

Charges Details

3&5 Years Processing Charges = Rs. 500/- per case

Mark-up Rate Avg. 1 Year ask side KIBOR + 900 BPS with floor of 20% p.a. Avg. 2 Year ask side KIBOR + 900 BPS with floor of 20% p.a. Avg. 3 Year ask side KIBOR + 1000 BPS with floor of 20% p.a.

E-CIB Charges = Rs.125/- per case Upto Rs. 100,000/Rs.200/- per case over Rs. 100,000/Documentation Charges = Actual Debt Burden The monthly payments of all loans/lease/limits from all FIs/banks should not exceed 50% of Take Home Salary / Net Income. Repayment In 12 - 60 Equal Monthly instalments. Late Payment 3% on the amount of instalment per day for the days the amount remains Penalty overdue Max. Rs. 500/- + Cheque Dishonouring Charges (as per schedule of charges of the bank) Eligibility Criteria ELIGIBILITY CRITERIA FOR GOVT. /ARMED

FORCES/BOP EMPLOYEES  

Internship Report

Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 10,000/- The condition may be relaxed to Rs.5,500/- subject to fulfilment of following conditions; a. Maintaining Salary Account with BOP from last six 78

The Bank of Punjab





 

months. b. Departmental Undertaking c. Two Personal Guarantees of senior grade employee but not less than grade 16 officer. (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip/Employer Certificate/Bank Statement of salary account showing monthly credits of salary amount). Permanent Employee with Minimum 03 Year of job Experience including 01 Year with current employer. (01 Year for BOP Employees including probation period). Contractual Employees are also eligible but loan should be adjusted before 06-months of the expiry of contract. Moreover, departmental undertaking / one Personal Guarantee of senior grade but not less than grade 16 officer, shall be obtained for contractual employees (Financial commitment of Guarantor should be established through E-CIB report & Salary Slip/Employer Certificate/Bank Statement of salary account showing monthly credits of salary amount). Maintaining Salary Account with any bank. Have valid CNIC

ELIGIBILITY CRITERIA FOR PRIVATE EMPLOYEES     

Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 15,000/Permanent Pvt. Employee with Minimum 05 Years of job Experience including 01 year with current employer. Maintaining Salary Account with any bank. Have valid CNIC

ELIGIBILITY CRITERIA FOR SEP   

 

Documents Required

Age between 25 and 57 Years (57 Years at maturity of facility) Minimum 03 Years in current profession. Minimum Monthly Net Income is Rs.20,000/- (Established through Tax Return or Income Estimation Report of outsourced agencies or Bank Statement). Have valid CNIC Residing or working in launching cities.

FOR GOVT. /ARMED FORCES/BOP EMPLOYEES  

Internship Report

Copy of valid CNIC Latest Salary Slip (Employer Certificate, if salary slip is not provided by employer) 79

The Bank of Punjab    

Employer Certificate on organization’s letter head (as per BOP specimen) – exempt for BOP employees. Copy of Contract Letter (for contractual employees) Bank Statement for last 06 months (where salary is being transferred). (exempt for BOP employees) Latest Copy of utility bills (Electricity & phone) (of present living address) (exempt for BOP employees)

FOR PRIVATE EMPLOYEES       

Copy of valid CNIC Two Recent Photographs Latest Salary Slip (Employer Certificate, if salary slip is not provided by employer) Employer Certificate on organization’s letter head (as per BOP specimen) Bank Statement for last 06 months (where salary is being transferred). Latest Copy of utility bills (Electricity & phone) (of present living address) Income Tax Returns of last two years.

FOR SELF EMPLOYED PROFESSIONALS     

CNIC Two Recent Photographs Bank Statement for last 01 Year of Business Account. Latest Copy of utility bills (Electricity & phone) of Residence Income Tax Returns of last two years.

BUSINESS RELATED DOCUMENTS.   

Security

 

Internship Report

Latest copy of utility bills (Electricity & phone) of current business address. Documentary evidence in business or in the profession for the last 03 years. Copy of Professional Degree Departmental Undertaking (waived for Govt. Officers of grade 17 & above and executives of corporate clients) Two Personal Guarantees of employees of equivalent/senior grades to the client or where no equivalent/senior grade officer is available then Personal Guarantee of two officers of grade 17 or above shall be obtained. (Financial commitment of Guarantor should be established through E-CIB report & Salary 80

The Bank of Punjab Slip/Employer Certificate/Bank Statement). In cases where the departments show intention to stand as guarantor, an agreement shall be signed between the concerned Department/Organization and Bank (through Regional Chief) whereby the Organization shall undertake to deduct the amount due at its own and then deposit the same into client’s account.   

THREE undated cheque for the full marked up amount i.e (Principle + Mark-up of 01 year) Life Insurance of Borrower. Post Dated Cheques

Any additional guarantee, if required as per the contents of the approval letter.

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The Bank of Punjab

Karobar Barhao Scheme

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The Bank of Punjab

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The Bank of Punjab

Live Stock Development Scheme Purpose: Provision of financial facility for purchase of animals (Milk & meat production, cattle farming, Poultry Farming and Fish farming) to the farmers and non farmers (those who have their own live stock farm/fish farm for commercial purposes)

Eligibility: Sufficient experience to handle Dairy Farm, Cattle Farm, Goat Farm, Poultry and Fish Farming.The persons who have their self owned Dairy Farms for production of milk on commercial basis).The applicant should be having adequate arrangements to sell out the products properly e.g. supply contract with milk processing company.

Amount: 80% of cost of animals (Maximum facility can be granted upto 50% of forced sale value of property).

Security: Leased Animals (receipt will be issued in the name of Bank).Charge on Agriculture Land through Agri Pass Book OR Charge on urban immovable property through equitable/registered mortgage. The property will be cleared by Bank's approved legal counsel and will be assessed by Bank's and PBA's approved surveyor. Liquid security in the shape Bank's Fixed Deposited Receipts/DSC/NSC or Regular Income Certificates.

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The Bank of Punjab

Margin on Security: 50% margin on landed property (Agri/Urban). 25% margin in case of liquid security

Insurance: The Lessee will arrange comprehensive insurance of Animals. In case of Poultry and Fish farming Borrower will have to arrange comprehensive insurance of poultry and fish stock himself form Bank's approved A rated company life assurance of lessee under the Bank's charge.

Mark-up: 18% Per Annum

Period: 5 Years

Repayment: 20 equal quarterly installments (within five years).

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The Bank of Punjab

Kisan Dost Aabiari Scheme Purpose: Provision of financial facility to the farmers for installation of Tube well, turbines etc.

Eligibility: Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres.

Amount: Maximum Rs 500,000/-.

Equity: 20% of the cost of project will be paid by the borrower.

Security: 1. Lease Assets i.e. Engine, Tube well and other related implements (The vendor will issue receipt in the name of Bank). 2. Charge on Agriculture Land through Agri. Pass Book. 3. One personal guarantee of reputable person acceptable to Bank. 4. Two written satisfactory market checking reports.

Margin on Collateral Security: 50% Margin on Agri land assessed by Surveyor. 25% margin Agri land as per value in revenue record. The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer)

Insurance: The Lessee will arrange comprehensive insurance of implements/assets. Life assurance of lessee under the Bank’s charge.

Mark-up: 18% Per Annum

Repayment: 10 equal half yearly installments (within five years).

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The Bank of Punjab

Kissan Dost Green House Finance Facility At present, the agriculture business is the most rewarding avenue of the Bank of Punjab. Due to the increasing demand of off seasoned vegetables, we are rolling out a special scheme by the name of “GREEN HOUSE FINANCE FACILITY” for farmers who intend to establish Green House to grow off seasoned vegetables.

Purpose The purpose of this loan is to encourage the farmers to establish green houses. This will also curtail the shortage of vegetables. Moreover the rate of vegetables will also decrease when they are in abundance in the markets.

Types of Green House There are two types of green houses i-e Metallic Construction & Bamboo Construction

Eligibility The applicant should be a genuine grower and should have a suitable land to establish a Green house. The applicant should not be a defaulter of any other Bank and the land under cultivation should be free from any encumbrance.

Nature & Amount of Facilities MEDIUM TERM DEMAND FINANCE FACILITY For Metallic Tunnels: For purchase of iron/steel, cement, concrete, polythene, mulching shopper, green net For Bamboo Tunnels: For purchase of bamboo, cement, concrete, polythene, mulching shopper, green net MEDIUM TERM LEASE FINANCE FACILITY For installation of Drip Irrigation System for both Metallic & Bamboo Tunnels: SHORT TERM FINANCE FOR RUNNING EXPENSES Running finance facility for the purpose of purchasing seed/inputs and other running expenses such as farm power, labor etc.

Disbursement: In case of Medium Term Demand Finance Facility the loan will be disbursed as 30% for base structure & for purchase of raw material, 40% for construction of green house/tunnels and rest of 30% for finishing purpose. Each tranche will be released after proper verification by Executive Incharge Agriculture & respective ACO of the Branch. In case of Medium Term Lease Finance

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The Bank of Punjab Facility the payment will be made directly to the vendor after proper verification of leased asset. In case of Short Term running Finance Facility the initial disbursement will be made as and when required by the applicant.

Amount 70% of the cost of construction assessed by Bank’s approved surveyor according to the proposed plan of construction In case of lease finance 80% of the purchase price of leased assets. In case of Running Finance, up to 80% of total running expenses.

Security I. PRIMARY · Leased assets in case of lease finance facility (receipt will be issued in the name of bank). · Hypothecation of vegetables, equipment etc. in case of running finances facility. II COLLATERAL Charge on agriculture land through Agri. Pass book. OR · Charge on urban immovable property through equitable/registered mortgage. the property should be cleared by the banks approved legal counsel and will assessed by the Banks and PBAs approved surveyor. OR · Liquid security in the shape of Banks Fixed Deposited Receipt/DSC/NSC or Regular Income Certificates. III One personal guarantee of a reputable person. ACO along with Regional Chief can waive this condition if they deem the borrower to be credit worthy.

Margin on Security IN CASE OF OAST BAI: The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer) IN CASE OF THE FORCED SALE VALUE IF EVALUATED BY PBA /BANK’S APPROVED SURVEYOR Maximum Amount of Finance will Be 50% Of The Forced Sale Value, Evaluated By PBA/Bank’s Approved Surveyor.

Insurance Comprehensive Insurance of the Leased/Hypothecated stock at borrowers cost assigned to BOP. Life assurance of the borrower under the bank’s charge assigned to BOP.

Mark up For Demand Finance 18% Per Annum

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The Bank of Punjab For Lease Finance 18% Per Annum For Running Finance 18% Per Annum

Recovery of Mark up In case of lease finance & Demand Finance the mark up will be recovered along with the installment on quarterly basis. In case of Running Finance Facility, the mark up will be recovered on quarterly basis.

Validity Running Finance to be settled in One Year along with mark up from the date of initial disbursement of Running Finance. Five years in case of Lease Finance Facility. Five years in case of Demand Finance Facility.

Repayment 20 equal quarterly installments (Principal and Mark up) in case of Lease/Demand Finance Facility. Running Finance to be settled once a year along with total mark up.

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The Bank of Punjab

PRICE “The amount of money the customers pay for the product of a company”. BOP provides different products and services to its customers, that have been discussed in previous section. Pricing of products means the commission to be paid by the customer in return of services provided by the bank. The commission paid for the services mainly includes: Mark up/ interest Bank charges Fees and bank commission etc. These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that keeps on changing time-to-time, and issued by the bank periodically (generally after six months). There has been a lot of controversy regarding the price of banking companies. Some scholars argue that the mark up received by the bank is rent for capital that is used by others. On the contrary, some call it purely Riba. This however is a very controversial and sensitive issue and I would like not to give any comment on it.

PROMOTION “All activities that a company undertakes to communicate and promote its products”. This is an age of competition. Numerous organizations are providing financial services to the customer. These days every one is facing pressure of competitors. In this world of growing competition, the only way to survive and grow, for an organization, in the market place is the proper marketing and promotion of its products. Same is the case with banking companies. There is large number of foreign and local banks working in the country and it has been noticed that they are emphasizing much on their marketing strategies. In this scenario, the key for a bank to succeed and attract its customers is adequate promotion of its products &services. The bank can attract and retain its customers through:

The most prominent and important way to attract a large number of customers is the advertisement of bank and its products/services. Punjab Bankhas adopted different approaches for the accomplishment of this purpose. For example, formation of Punjab Bank Lahore branch is a major step taken by BOP. It not only provides a source of recreation to the people but it serves as a major source of marketing for the bank. Due to Punjab Banl assistance for the construction of fountain in Liberty Market Square, it is named as Punjab Bank Square. BOP Square, for being situated in such a business and commercial area has its unusual importance and has resulted into bank‟s promotion. Internship Report

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The Bank of Punjab Construction of Gul Barig as main branch Lahore is going to be the revolutionary step for BOP. It would not serve just as a main branch only, but it would also be a great source of ever growing marking and promotion of bank. BOP issued its own rupee travellers cheques with highest denomination during the course of my internship. I have seen some coloured advertisements of However, one drawback or shortcoming is that, BOP has formulized a lot of products and services for its customers, even more than other commercial banks, but any advertisement on electronic media has not been seen. Since, BOP s major competitor Union Bank Limited has started large media campaign, so keeping in view these threats, Punjab Bank should emphasize more on its advertisement. Along with the advertisement, the bank is providing personal services to its clients with maximum security as other banks provide. Bank also encourages the public relation policy of marketing. Some brochures and promotional material has been printed but it is distributed mainly through the clients who visit the branch for their day-to-day business or through the customers who come to get information about new schemes launched by the bank.

PLACEMENT EVERYTHING WE DO IS FOR YOU 39 “The activities a bank undertakes to make products and services easily available or accessible to the customers”. Bank of Punjab objective has been to expand its branch network to meet clients needs. Bank is well positioned and geographically poised, to cater for increased business demands, from its existing potential clientele. During last year under review, BOP opened 8 new branches and presently it has 23 branches, spread all over Punjab covering major business centers and principle cities. Bank plans to add more branches to his growing network in the ensuing years. At present, BOP has opened all its branches at commercial and business areas or near to commercial areas so that the customers or clients face no problem in reaching the bank. Head Office of BOP is situated in Lahore. The detail description of its branches is as follows:

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The Bank of Punjab

Head office of BOP

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The Bank of Punjab

Karachi / Quetta Region

Islamabad Region

Lahore North Region

Lahore South Region

Rawalpindi Region

Faisalabad Region

Gujranwala Region

Gujrat Region

Multan Region

Bahawalpur Region

D.G. Khan Region

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The Bank of Punjab

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The Bank of Punjab

STRENGTHS ensure a consistent and convenient customer experience. structured and syndicated financing arrangements, working capital finance, financing of international trade, consumer credit, small business loans, credit cards and ATM cards. talent hiring, professional grooming, requisite training and merit based reward system. hospitalization plan, home loan insurance have added new dimensions to the staff-care policy and motivated them to out-perform competitors. ompetitive advantage over all domestic players by virtue of its leadership in technological innovations. Bank has fully automated transaction-processing systems for back-office support. Bank's branch network is connected on-line real-time and customers have access to off-site as well as on-site ATMs, all over Pakistan. Bank also is pioneer in e-commerce venture in Pakistan through a major retail distributor. From a humble beginning with just 10 branches in 1993, today bank enjoys a network of 242 outlets, spread across the country. A network of self-service ATMs supports these outlets.

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WEAKNESSES Bank is providing credit facilities only to the urban areas not too much attention is paid to the rural areas. As Pakistan is agriculture country but no special schemes for the agri- loans. Bank is not giving emphasis on the small-scale businesses, which are large in number in Pakistan. There is enormous difference between the bank-lending rate and return on deposits. The procedure and documentation while sanction loan is thorny, which is a barrier for advances. Bank gives targets to employees for deposits due to this reason they pay more attention to fulfil these targets to save their jobs. This distracts their attention from their duties. No job security is there for the employees, and no union exits to secure them. BOP has only agency arrangements with the foreign banks, no branch exists outside the Pakistan, while their main competitors have their own branch network outside the Pakistan. To improve the services and to remove the problems of customer the bank has no customer complaint department. Limited locker facility is there, which does not fulfil the requirements of customer and charges of lockers are also very high.

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OPPORTUNITIES Bank has a small branch network so The Bank of Punjab can increase its turnover though increase the number of branches. Bank has no foreign branches so it should open its branches outside the country especially in U.K, U.S.A and in U.A.E. Facilities like financing of housing should also be offered to general public especially in the urban areas. In agrarians cities like Rahim Yar Khan there is a potential for giving credit facilities to farmers. To increase its advances bank should focus small scale industries and choose one among them and then a special scheme of lending should be introduced for that particular small scale industry.

THREATS Law and order situation in Pakistan is faulty that is why people are not confident to invest anywhere. The markets rates are now at extremely low levels, with very little chance of their going up during the rest of the year. The low interest rate means low profits for the banks. Saving rate in Pakistan is very low i.e.15% as compared to 30% in China and 40% in Malaysia. Internship Report

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As the banking procedures are complicated that is why general public takes interest into other options of investments like in shares of companies and in Term Finance Certificates. Now the world is a global village so competitors may rise from anywhere in the world at anytime. In near future the world is going to be free trade zone so the concept of "survival of the fittest" will be in action. After the 11 September incident and due to terrorist activities in Pakistan the economy is moving very slow. It means less investment and as a result low loan demands. High rate of taxes on banking companies. SBP have a heavy penalty on banks for violating the Prudential Regulation. So it requires greater care while advancing. Increasing ATM trend among the banks also requires attention of the management to this side.

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PEST ANALYSIS PEST analysis of any industry investigates the important factors that affect the industry and influence the companies operating in the sector. PEST stands for Political, Economic, Social and Technological analysis. The PEST Analysis is a tool to analyze the forces that drive the industry and how those factors can influence the industry.



POLITICAL



ECONOMICAL



SOCIO CULTURAL



TECHNOLOGICAL

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ECONOMICAL        

GDP MONSOON INFLATION SAVINGS & ACCOUNTS AGRICULTURE CREDIT INTEREST RATES RAISING LIVING STANDRED DISPOSABLE INCOME

POLITICAL    

SOCIOCULTURAL

GOVERNME NT POLICY & BUDGECT BUDJECT MEASURES MONATORY POLICY FDI LIMIT

   Organization



CHANGES IN LIFE STYLE LITERACY RATE DEMOGRAPHIC OF LARGE POPULATION SHIFT TOWARDS THE NUCLEAR FAMILY

TECHNICAL     

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TECHNOLOGY IN BANKS CORE BANKING SOLUTIONS ATM INTERNATE I.T SERVES AND MOBILE BANKING

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POLITICAL FACTORS Government policies affect the banking sector. Sometimes looking into the political advantage of a particular party, the Government declares some measures to their benefits like waiver of short-term agricultural loans, to attract the farmer’s votes. By doing so the profits of the bank get affected. Various banks in the cooperative sector are open and run by the politicians. They exploit these banks for their benefits. Sometimes the government appoints various chairmen of the banks. Various policies are framed by the SBP looking at the present situation of the country for better control over the banks FOCUS ON REGULATIONS OF GOVERNMENT Government affects the performance of banking sector most by legislature and framing policy .government through its budget affects the banking activities securitization act has given more power to banking sector against defaulting borrowers. MONETARY POLICY Bank Rate: The Bank Rate has been retained unchanged Repo Rate It has been reduced under the Liquidity Adjustment Facility (LAF) Reverse Repo Rate : It has been reduced under LAF by 25 basis points from 3.5% to 3.25% with immediate effect. RBI has retained the option to conduct overnight or longer term repo/reverse repo under the LAF depending on market conditions and other relevant factors. FDI LIMIT The move to increase Foreign Direct Investment FDI limits to 49 percent from 20 percent during the first quarter of this fiscal came as a welcome announcement to foreign players wanting to get a foot hold in the Indian Markets by investing in willing Indian partners who are starved of net worth to meet CAR norms. Ceiling for FII investment in companies was also increased from 24.0 percent to 49.0 percent and have been included within the ambit of FDI investment

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ECONOMIC FACTORS Banking is as old as authentic history and the modern commercial banking are traceable to ancient times., banking has existed in one form or the other from time to time. Every year SBP declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. If in the Budget savings are encouraged, then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking channels GROWING ECONOMY / GDP It is great news that today the service sector is contributing more than half of the Indian GDP. It takes PAKISTAN one step closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the GDP. The Pakistani government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI LOW INTEREST RATES SBP controls the Interest rate, which is based on several monetary policies. Recently SBP has reduced the interest rate which stimulates the growth rate of banking industry. Call money rates (borrowing & lending) were in the range of 1.50/3.47 per cent as compared with 5.25/11.00 per cent on the corresponding date of last year INFLATION RATES Inflation represents a rise in general level of prices of goods and services over a period of time. It leads to erosion in the purchasing power of money. Resultantly, each unit of currency buys fewer goods and services Different fiscal and monetary policies have curbed the Inflation rate. To fight against the slowdown of the Economy, Government of Pakistan & SBP took many fiscal as well as monetary actions. Clubbed with fiscal & monetary actions, decreasing commodity prices, decreasing crude prices and lowering interest rate, we expect that Indian Economy could again register a robust growth rate in the year 2009-10 Internship Report

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The Bank of Punjab SAVINGS AND ACCOUNTS As stated earlier Pakistan continues to remain one of the high savings economies among the emerging market economies. Gross Domestic Savings (GDS) of the Pakistan economy constitutes savings of public, private corporate and household sectors. In the recent period the high growth performance of the Pakistan economy is driven by rise in savings AGRICULTURE CREDIT Agriculture has been the mainstay of our economy with 70% of our population deriving their sustenance from it. In the recent past, the sector has recorded a growth of about 4% per annum with substantial increase in plan allocations and capital formation in the sector. The target for agriculture credit flow for the year 2009-10 is being set at Rs.3,25,000 crore. To achieve this, I propose to continue the interest subvention scheme for short term crop loans to farmers for loans upto Rs.3 lakh per farmer at the interest rate of 7% per annum. For this year, the government shall pay an additional subvention of 1% as an incentive to those farmers who repay their short term crop loans on schedule

SOCIO CULTUREAL FACTORS Socio culture factors also affect the business. They show in which people behave in country. Socio-cultural factors like taboos, customs, traditions, tastes, preferences, buying and consumption habit of people, their language, beliefs and values affect the business. Banking industry is also operates under this social environment and it is also affect by this factor. These factor are changing continuously people’s life style, their behavior, consumption pattern etc. is changing and also creating opportunities and threat for banking industry. There are some socio-culture factors that affect banking in India have been analyzed below.

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The Bank of Punjab SHIFT TOWARDS NUCLEAR FAMILY Attitude of people of Pakistan is changing. Now, younger generation wants to remain separate from their parents after they get married. Joint families are breaking up. There are many reasons behind that. But banking sector is positively affected by this trend. A family need home consumer durables like freeze, washing machine, television, bike, car, etc. so, they demand for these products and borrow from banks. Recently there is boost in housing finance and vehicle loans. As they do not have money they go for installments. So, banks satisfy nuclear families wants. CHANGE IN LIFE STYLE Life style of Pakistan is changing rapidly. They are demanding high class products. They have become more advanced. People want everything car, mobile, etc.. what their fore father had dreamed for. Now teenagers also have mobile and vehicle. Even middle class people also want to have well furnished home, television, mobile, vehicle and this has opened opportunities for banking secter to tap this change. Every thing is available so it has become easy to purchase anything if you do not have lump sum. POPULATION Increase in population is one of the important factor, which affect the private sector banks. Banks would open their branches after looking into the population demographics of the area. Percentage of deposit in any branches of banks depends upon the population demographic of that area. About 70% of population is below 35 years of age. They are in the prime earning stage and this increase the earning of the banks. Deposits showed a subdued growth during 2004-05.Income distributions also affects the operations and overall business of private sector banks. LITERACY RATE Literacy rate in Pakistan is very low compared to developed countries. Illiterate people hesitate to transact with banks. So, this impacts negatively on banks. But there is positive side of this as well i.e. illiterate people trust more on banks to deposit their money; they do not have market information. Opportunities in stocks or mutual funds. So, they look bank as their sole and safe alternative Internship Report

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TECHNOLOGICAL FACTORS

TECHNOLOGY IN BANKS

Technology plays a very important role in bank’s internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services.

ATM The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed ‘anytime, anywhere banking’ facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry, get the statement of accounts, give instructions for fund transfers, etc. IT SERVICES & MOBILE BANKING Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. The messages are then recognized by the bank to provide you with the required information. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. Technology advancement has changed the face of traditional banking systems. Technology advancement has offer 24X7 banking even giving faster and secured service. CORE BANKING SOLUTIONS It is the buzzword today and every bank is trying to adopt it is the centralize banking platform through which a bank can control its entire operation the adoption of core banking solution will help bank to roll out new product and services. Internship Report

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HR ACTIVITIES

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Human Resource Department: This Department does all the activities related to Human Resources (Hr) and Personnel Management like job Analysis, Job Design, job Description, job Redesign, job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance

and

accountability),

Compensation

and

Protection,

Union-

Management Relations etc. It also involves in the following activities:

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Transfers & Postings

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Mandatory Leaves and its observance.

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Staff leaves and other related staff matters

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Goals of all Staff

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Monthly Statement of Staff

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Disciplinary Action Cases

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Cases Retired employees & its Correspondence



Complaints and its correspondence

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Activities I performed In THE BANK OF PUNJAB During My Internship.  On the very first day our manager Mr. serwer Malik guides me about the rules and regulations of the bank.  After this the bank officer Mr. Shakeel guides me about the deposit clip to fill. And also guides me about the use of deposit clip. After this guides I starts the deposit clips to fill of different customers.  Then I get the information about the account open in the bank from the bank officer mr. Anwar. But I cannot perform it because it was not allowed to the internees in the bank.  I also get the information about the process to issue the Demand Draft. And fill the form of Demand Draft for the related customers.  I also get performed the activity to fill the performa of Bank of Punjab on line.  I also made the collections of the branch from different branches of the other bank.  I also issued the cheque books to the customers.  I helped many times to our credit officer to maintain the necessary papers of different account holders before the issuance of credit.  I daily performed the activity to maintain the Signature Specimen card in systematically.

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MY LIMITATION IN THE BANK

1. The work on the computers of the bank was not allowed to me. 2. I cannot personally debit and credit any account. 3. Work on the cash counter was not allowed to me. 4. Show the secret accounts of the different customers was also prohibited during my internship. 5. Issuance of Demand draft to the customers of the Bank personally was not allowed to me. 6. Show bad behaviour with any customer of the bank. 7. Missguide any customer about the bank system.

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The Bank of Punjab

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The Bank of Punjab

Deposits Years

Deposits (Rs in Millions)

2005

17101

2006

15019

2007

17028

2008

19034

2009

23767

Advances

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Years

Deposits (Rs in Millions)

2005

5612

2006

5161

2007

6144

2008

5772

2009

6621

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Investment Years

Deposits (Rs in Millions)

2005

6581

2006

4991

2007

7866

2008

5970

2009

8295

Capital & Reserves

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Years

Deposits (Rs in Millions)

2005

1795

2006

1823

2007

2180

2008

2391

2009

2313

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Total Assets Years

Deposits (Rs in Millions)

2005

19886

2006

18215

2007

21275

2008

24802

2009

29532

Profit

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Years

Deposits (Rs in Millions)

2005

123

2006

28

2007

356

2008

222

2009

283

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Growth of Shareholders

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Years

Deposits (Rs in Millions)

2005

5389

2006

5389

2007

5896

2008

6436

2009

5891

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The Bank of Punjab

Balance Sheet

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The Bank of Punjab

Horizontal Analysis

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The Bank of Punjab

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The Bank of Punjab

Profit & Loss A/c

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The Bank of Punjab

Horizontal Analysis

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The Bank of Punjab

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The Bank of Punjab

Vertical Analysis of Balance Sheet

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The Bank of Punjab

Vertical Analysis Of Profit & Loss A/c

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Comparative Financial Statement Comparative financial statement present financial information for the current period and one or more past periods. In comparative analysis the statements predict about the movements and trends of the business with respect to past years, whether there is increase in the business activities or decrease. It may also help to comments about the future expectations of the ways in which the financial and operating performance will go. There are two type of comparative financial statement analysis.

Horizontal Analysis Comparison of two or more years’ financial statement is called Horizontal Analysis. It shows the changes between years both in rupee and percentages form. So in this way it facilitates the analyst to predict about the ways if the business in which it is going. It emphasis the proportional relationship between the reporting periods, rather than with in the reporting period. In this report I shall use this type of comparative financial statement analysis to analyze the performance of The Bank of Punjab.

Trend Percentage Analysis Trend percentages state the several years’ financial data in terms of a base year. The base years equals to 100% with all other stated as some percentage of this base year. In this way it predict good and easy way information about the business activities. By simple looking at these percentages one can see the ways in which the business in going on whether the business is making performance or not.

Comments on Comparative Analysis of 2009-2008 The results that I have perceived from the Comparative Analysis of Balance Sheet and Profit & Loss Account of 2009-08.

From Balance Sheet * The current assets increased by 21%, this is mainly due to a higher increase in Balance with other Banks i.e. 139%but cash is reduced which is not good for the Short term solvency of the bank. Account receivable also increases as compared to last year but other assets decrease i.e. 33%. * Total Assets are increased by 23.7%. * Fixed Assets are increased by 43%. * The increase in Balance with other banks by 139% is a good sign for the Internship Report

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The Bank of Punjab short-term solvency of the bank. * The Account receivable is increased by 15% in this period. As a whole total assets and total liabilities plus owner’s equity is increased by 19% which corresponds with the increase in service revenue.

From Profit and Loss Account * The service revenue of the bank is increased by 1% than that of 2008, with the decrease of –7% in the cost return on deposits. So service decreased less than that of return on deposits. * This less decrease, service revenue than that of return on deposits results in an increase of 21% of Gross profit. * The other income of the bank also increased in 2009 then that of in 2008. These are increased by 194%. * As the service revenue increased, the administrative expenses also increased by 11%. * Overall profit after tax also increased by 39% in 2005 then that of 2009.

Comments on Comparative Analysis of 2008-2007 From Balance Sheet * The current assets increased by 51%, this is mainly due to a higher increase in cash i.e. 170% but balance with other bank is reduce which is not good for the Short term solvency of the bank. Account receivable also increases as compared to last year. * Total Assets are increased by 23%. * Fixed Assets are increased by 8.2%. * The decrease in Balance with other banks by –1.3% is not good sign for the short-term solvency of the bank. * The Account receivable is increased by 83% in this period. As a whole total assets and total liabilities plus owner’s equity is increased by 23% which corresponds with the increase in service revenue.

From Profit and Loss Account * The service revenue of the bank is increased by 8% than that of 2007 * This less decrease, service revenue than that of return on deposits results in an increase of 41% of Gross profit. * The other income of the bank also increased in 2001 then that of in 2007. These are increased by 86%. * As the service revenue increased, the administrative expenses also increased by 26%. * Overall profit after tax also increased by 64% 2001 then that of 2007. Internship Report

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Comments on Comparative Analysis of 2008-2009 The results that I have perceived from the Comparative Analysis of Balance Sheet and Profit & Loss Account of 2008-2009.

From Balance Sheet * The current assets decreases by -8%, this is mainly due to a higher decrease in Balance with other Banks i.e. -82% and cash is also reduced by -31%, which is not good for the Short-term solvency of the bank. Account receivable increase as compared to last year but other assets decrease i.e. 14%. * Total Assets are increased by 10%. * Fixed Assets are increased by 8%. * The decrease in Balance with other banks by -82% is not a good sign for the short-term solvency of the bank. * The Account receivable is increased by 25% in this period.

From Profit and Loss Account * The service revenue of the bank is decreased by -9% than that of 2009, with the decrease of –15% Mark up interest on deposits. So service decreased less than that of Mark-up Interest. * This less decrease, service revenue than that of mark-up on deposits results in an increase of 14% of Gross profit. * The other income of the bank increased highly in 2005 then that of in 2009. These are increased by 61%. * As the service revenue decreased, the administrative expenses also decreased by -7%. Overall profit after tax also increased by 105% in 2005 then that of 2009.

Comments on Comparative Analysis of 2007-2008 The results that I have perceived from the Comparative Analysis of Balance Sheet and Profit & Loss Account of 2007-2008.

From Balance Sheet * The current assets decreases by –3.8%, this is mainly due to a higher decrease in Account Receivable but increased in Balance with other Banks i.e. 5% and cash is also increased by 15.7% which is good for the Short term solvency of the bank. * Total Assets are decreased by -8.4%. * Fixed Assets are also decreased by -1.2%. * The Account receivables are decreased by -62% in this period. Internship Report

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The Bank of Punjab

From Profit and Loss Account * The service revenue of the bank is increased by 1% than that of 2008, with the decrease of –14% in the cost return on deposits. So service decreased less than that of return on deposits. * This less decrease, service revenue than that of return on deposits results in an increase of 43.7% of Gross profit. * The other income of the bank also increased in 2005 then that of in 2009. These are increased by 128%. * As the service revenue increased, the administrative expenses also increased by 20%.  Overall profit after tax decreased by -77% in 2005 then that of 2009.

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The Bank of Punjab

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The Bank of Punjab

This table and graph shows the trend of Gross Income, profit before tax, and Net income.

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The Bank of Punjab

This table and graph shows the trend of current Liabilities, Deferred Liabilities and Long Term Liabilities during the period 2005-09

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RATIO ANALYSIS The relationship of one item to another expressed in simple mathematical form is known as a ratio. A single ratio in itself is meaningless because it does not furnish a complete picture. A ratio becomes meaning full when compared with some standard. So we have taken ratios and percentage of the BOP based in its record of the past financial and operating performance. On the following pages, I make the analysis of the financial statements of BOP by using related items for the last five years.

Profitability vs. Investment

Remarks. The return on assets shows a increasing trend, which is good sign for the BOP. Return on deposits is also not stable; in starting years it increases and then decreases and knows again increase. This is due to an increase in deposits and less increase in profit. The ROE ratio of five years of BOP indicates that the profitability of the bank with equity is increasing day by day. This looks to be very positive sign.

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Profitability Ratios.

Remarks. The net profit margin of five years indicates that the income of the BOP after paying its non-productive expenses is increasing year by year, which is a very good sign for the bank. As I see the operating profit of the bank shows a increasing trend in ratio. This shows that the earning capacity of the bank is increasing year by year.

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Earning Per Share

Remarks: Earning of BOP shows the increasing trend. This shows that the earning capacity of a single share is increasing and shareholders are earning increase every year. This is very good sign for BOP. This ratio should be as high as possible because it has a great importance for an investor to invest in the Bank of Punjab.

Regulatory Ratios:

Remarks.

Advances to deposits ratio of The Bank of Punjab shows that the portion of loan in total deposit of the bank is not stable, 1st three year from 2005 to 2007 increase then decrease. It means that the credit (advances) circulation of the bank has fallen from 36% to 28% during the last five years, which is a not good sign. And the cash to deposits ratio is also decrease from 42% to 12%. Internship Report

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Capital adequacy Ratios:

Remarks: This ratios is showing increasing trend, in 2009 it decreased. This means that deposit of the banks are decreased in 2009 and assets are also decreased in 2009, which is not good for the Bank of Punjab.

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Efficiency Ratios:

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Suggestions & Recommendation Survive in the Market The bank should not relay on its present sources and facilities but also it should establish new ways of acquiring, managing and sharing market information to survive in the industry and to earn profits. Computer Specialis The bank should increase the computer specialist at branch level. Customer Compliant Department The bank should improve the services and remove the problems of customer by making a vast customer complaint department. Locker Facility The bank should increase locker facility and decrease the charges of lockers. Security Measurement Bank has low security measurement in branches. Bank should increase the number of guards and other technical security tools. Improve and Update Website The Bank should improve and keep the up to date information on web site. Hire New Talent Instead of preferring the old employees of the other banks, management should hire new and well-educated talent. This will contribute to the long-term benefits of the bank. Credit Policy Credit policy should cover both the rural and as well as urban areas. Credit facilities should be enhanced to small-scale businesses. Bonus Employees who perform extraordinary and achieve more than their targets should be given bonus.

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Conclusion The Bank of Punjab is contributing a lot towards the industrial development and capital formation in the country. As it is exhibit from the data regarding the bank’s financial performance as shows in the financial performance as shows in the financial analysis, that bank is sharing major banking business of the country. Further more the policies and schemes as are introduced and carried on by the bank are of great source of help in its trading and non-trading growth. They facilitate trade both inside and outside the country. The Bank if Punjab has endeavored to remain in the forefront of modern financial institutions and has consistently shows tremendous growth in all area of its activity. However after scheduling, due to its emphasis on consolidation and controlled lending, the growth of profit has somewhat declined.But the bank’s performance is in line with its set goals. The policies of the bank are uniform and going very smoothly. The employees are given all the possible facilities and generous compensation. In return employees are stressed for their best efficiency. Merit policy prevails in all the activities of the bank. Bank Management has studied the administrative policies of all other banks, and all their problems and drawbacks are planned to be avoided. Therefore, the policies of the management are progressive and proper. The progressive approach and trend towards progress and prosperity reflects that bank will touch the zenith of development and progress. The dedicated, enthusiastic and motivated employees can bring that time even earlier.

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