Internship Report on Bank of Punjab

INTERNSHIP REPORT ON BANK OF PUNJAB Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of the Requirements for the Master of Business Administration.

Program & Session

MBA (4th) H

UNIVERSITY OF GUJRAT Date of Submission Name of Program Coordinator ___________________ Signature of Program Coordinator_________________

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Dedication I Dedicate This Work To My Honorable Parents

Who have been a great source of love, affection and encouragement throughout my academic career and their matchless sacrifices in the process of my upbringing make me respectful to all human talk.

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Acknowledgement Praise be to Almighty Allah, the Most Merciful and Magnificent and to his Holy Prophet Muhammad (Peace Be Upon Him) who is forever a torch of guidance and knowledge for humanity as a whole. I feel deep sense of gratitude to HASSAN NAWAZ manager of The Bank of Punjab khiali Gate Gujranwala Branch for allowing to me to do my internship and also providing me necessary assistant and guidance. I am also highly grateful to Mr.salman (Agri. Relationship Manager) & Mr. Kamran (OG III) who helped me during my training while performing complex tasks as well as the

departmental

heads

of

the

bank

especially

operations

related

department. I owe depth of gratitude to my affectionate parents, and other peoples who supported me morally and inspired me to the higher ideas of life. My gratitude also goes to all those friends who provided me any assistance in what so ever manner in the preparation of this study.

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Executive Summary

I have presented my report into 3 main sections. In the 1st section I have described the introduction, nature and history of BOP. Details of products and services, introduction of all departments and the branch where I did my internship and the task done by me during my training. In the 2ndsection I’ve made the complete ration analysis, vertical and horizontal analysis and BOP comparison with the industry. In 2008 critical analysis does not provide satisfactory results, the main reason is the loss on revaluation of assets (Hamas Khan Fraud cause). In the 3rd section I have suggested some recommendations in the light of ratios and SWOT analysis. BOP has negative working capital in all the three years so it is essential to increase current assets and reduce investment in fixed assets. Annexes and reference and sources used are also described in this section. Since the incorporation the Bank has grown manifold showing remarkable growth in all aspects. Especially, after the current management took over the affairs of the bank in 2007 there has been tremendous growth in all its facets of operations as a result of application of prudent and pragmatic policies with futuristic approach. Owing to its significant performance, profitability, financial standing and market penetration the Bank has attained reputation

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of a responsible corporate citizen playing a pivotal role in economic and social development of the country. Sound financial footing, improved profitability and competent management are the key factors taken into consideration by PACRA, the credit rating agency, while assigning to the Bank highly credible ratings of AA for longterm and A1 for short-term which is the highest rating in this category.

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Table of Content Title Page Dedication Acknowledgement Executive Summary AboutBankOFPunja..…………………………………... Mission and Vission Statement….……………………... Punjab Govt Show Faith In The Bank Of Punjab…… CORE VALUE………………………………….……..... AWARDS AND ACHIEVEMENT……………………. PRODUCTS……………………………………………. Depositsproducts…...……………………….. BOP Basic BAnk Account………………….. BOP Tijarat Account……………………….. BOP FCA Supreme Account………………………… 13 PROFIT AND LOSS SHARING TERMS ACCOUNT.. Product……………………………………….. Premature Encashment…………………….. Miscellaneous………………………………… Corporate premier Term Account……………… 17

8 9 9 9 9 10 10 10 12

15 15 16 17

General Corporate Entities…………………………… 17 Munafa Hi Munafa Term Account………………… 17 Bai Missal Term Deposit Account……………….. 18

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PROFIT LOSS SHARING CHEQPNG ACCOUNTS……………………… 19 PLS Saving Account………………………………………

19

Senior Citizens Saving Account…………………….. 21 Gharayloo Saving Account……………………….. 22 ZaidaMunafa Saving Account………………….. 24 LOANS PRODUCTS……………………………………………………………. 25 Commercial Finance………………………………….. Against GOVT Securities………………………….. stocks…………….

25 27

Against Hypothecation Of 28

CASH FINANCE………………………………………….

29

CONSUMER FINANCE………………………………………………………… 30 Asian Loan…………………………………………………… 30 Cash…………………………………………………… MBA 4th

Quick 34 Page 7

Car Loan……………………………………………………… 37 AGRICULTURE CREDIT……………………………………………………….

41

AGRICULTURE LOANS……………………………………………………….

42

Kisan dost scheme……………………………. 43 Agriculture Schemes Markup………………… 44 Scheme for Controlled Shed…………………. 46 Agriculture Finance Scheme………………… 48 Model Dairy Farms…………………………… 49 TRADE PROCESSING CENTERS……………………..

53

COMMERCIAL BANKINGS………………….. 54 CORPORATE AND INVESTMENT BANK…. 54 CASH MANGEMENT SERVICE……….. UTILITY BILLS……………………………..

56

LOCKER FACILITIES……………………..

56

ATM LOCATIONS…………………………..

57

1 LINK NETWORKS………………………….. SUGGESTIONS…………………………………………… MBA 4th

56

57 59 Page 8

SWOT ANALYSIS………………………………………… 59 CONCLUSION…………………………………………………………………… . 64 Reference and Sources Used…………………………………..

66

About Bank of punjab Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its network of 273 branches at all major business centers in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and Agriculture A wholly owned subsidiary of BOP First Punjab Modaraba (FPM) was established in 1992 and is being managed by Punjab Modaraba Services (Pvt) Ltd.( 272 branches )

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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.

Punjab Government Shows Faith in Bank of Punjab

Punjab Government wishes to state that being the major stake holder in the Bank of Punjab it has full faith in the new management and operations of the Bank. The government further pledges its unequivocal support to the Bank and firmly believes that the affairs of the Bank are sound and its financial health robust. (Finance Department)

Core Values

Our Customer As our first priority Profitability For the prosperity of our stakeholders that allows us to constantly invest,

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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.

Awards & 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.

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16th Bolan Excellence Award The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in 2006. Achievement Award The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006.

Products

Deposit Products: Current Accounts The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary.

The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted. The Accounts may be opened singly in one name or jointly in two or more names. A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. The Bank reserves the right to change the Account Number or any part of

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it in order to meet its book keeping/administration requirement. However, intimation of change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened with an initial deposit of Rs.100/Deposit may be accepted from minors provided the account is opened and operated through a guardian. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. The necessary consent to this effect will be obtained at the time of opening of the account. The orders of the court will, however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-inslip showing the title and number of the account. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. However in case of branches where teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits. Withdrawals are not allowed against postdated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds.

Where any account is not conducted to the satisfaction of the Bank, the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s). The Bank has the right to refuse to open an Account without assigning any reason. For New Customer All CD accounts which are not operated upon by the account holders for a period of one year will be classified as dormant. After passing one year in the dormant status, that is, no operation in the account for a continuous period of two years, the account shall be

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classified as inoperative. This entails certain restrictions on the operation of such accounts, for reactivation, the account holder must in person request for a change of status and will produce original CNIC or Passport or Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistani (NICOP) with photo copy for Branch / Bank attestation. After passing further 8 years in inoperative status,i.e., if a CD account is not operated upon by a customer for a continues period of ten years, it will be classified as unclaimed deposit account and will be surrendered to SBP as per the provisions (section 31) of Banking Companies Ordinance 1962

For Existing Account Holders

The period of conversion of a normal CD account to dormant has been enhanced from 06 months to one year, since last opertaion in the account, with effect from January 2008. The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER. \

BOP Basic Banking Account The minimum initial deposit will be Rs.1000. No profit will be Payable. No fee (service charges) for maintaining such accounts will be charged. There will be no limit for maintain minimum balance. In the cases, there balance in BBA’s remaining "NIL" for a continuous 6 month period, such accounts will be closed. Account holder will be allowed a maximum of 2 deposit transactions and 2 chequing withdrawals, free of charge either through cash/through clearing per month otherwise service charges of a regular banking account shall be applicable for that month as per Bank's Schedule of Charges.

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Unlimited free of charge ATM withdrawals from Bank's own ATM's will be allowed. In case of withdrawals from BBA through the ATM Machine of other Banks, the Charges of these Banks shall be applicable for such transactions.

Note If any existing customer desire to get his regular banking account converted into Basic Banking Account, he / she may kindly contact the branch where his / her account is being maintained. The facility for conversion into BBA will be provided free of charge

BOP TIJARAT ACCOUNT (LCY) :

INCENTIVE

MINIMUM MONTHLY AVERAGE BALANCE FROM RS. 50,000 OVER

Inter-city/within-city On-line deposit/withdrawal

Rs.5/- flat

Issuance of ATM/Debit Card

Free

Renewal of ATM/Debit Card

Free

Issuance of Cheque Book

Free – No limit

Issuance of Duplicate A/c Statement

Free – No limit

Rental Charges for Lockers (small/medium)

Free - Locker of your choice subject to availability

Key deposit for lockers

Free

Issuance of PO/DD/MT/TT

Rs.5/- flat

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DD Cancellation Charges

Free – No limit

Courier Charges

Free- No limit

Commission in Outward Bills for Collection charges

Free - on equal to thrice of last month’s average balance and above this amount as per SOC (commission @ 0.15%)

Cheque return charges for cheques presented in clearing as collecting banker.

Free

Call Deposit Receipt

Free

N.B 1) the rent free locker facility will be allowed on availability of locker and after maintaining average balance for six months. 2) In order to further facilitate the managers in targeting customers, it will be at the discretion of the manager to offer the incentive package from day one. However it will be the responsibility of the branch to ensure that customer completes the criteria as per above table otherwise recover the charges waived 3) The incentive package will be reviewed on the basis of deposit procured vis-à-vis cost/benefit and it can be revised downward. BOP FCY SUPREME CURRENT ACCOUNT: Foreign Currency Accounts can be opened in four currencies namely US Dollar, UK Pond Sterling, Yen and Euro at any of the authorized branch

INCENTIVE PACKAGE FOR BOP FCY SUPREME CURRENT A/Cs INCENTIVE Issuance of ATM/Debit Card for Pak Rs. A/c

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MINIMUM BALANCE $ 10, 000 OR EURO 8,000 OR U.K. POUND 7,000 One Card

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Renewal of ATM/Debit Card for Pak Rs. A/c

Allowed

Issuance of Cheque Book

One per month

Issuance of Duplicate A/c Statement

1 per month

Lockers (small / medium) *

01 Allowed with same title (at any branch of Bop)

Outward Bills for Collection

CD account in PKR, with same title

Free Cancellation of DD/PO/MT/TT/CDR in PKR

CD account in PKR, with same title

No Cheque Return Charges - for cheques presented in clearing as collecting banker

CD account in PKR, with same title

No key deposit for lockers

For Free Locker, mentioned above

Free Issuance of DD/ PO/ MT/ TT/ CDR in PKR

Rs. 5/- flat per transaction

On – Line Transactions from PKR account (Intercity / Within City – Deposit / Withdrawal)

Rs. 5/- flat per transaction

N.B. 1. The rent free locker facility will be allowed on availability of locker and after maintaining average balance for six months.

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2. In order to further facilitate the managers in targeting customers, it will be at the discretion of the manager to offer the incentive package from day one. However it will be the responsibility of the branch to ensure that customer completes the criteria as per above table otherwise recover the charges waived. 3. The incentive package will be reviewed on quarterly basis. The Bank reserves the right to change, modify the package.

Profit Loss Sharing Term Accounts BOP PEHLAY MUNAFA SCHEME: PRODUCT This is a Fixed Deposit product with free ATM/Debit Card. The tenure will be 3, 6, 12, 15 and 18 months. WHO CAN INVEST The product is available for all types of customers who are eligible to invest in term deposit as per Bank’s criteria. The term account can be opened singly or jointly. Benevolent/Charitable Funds, Trusts, Cooperative Societies, Clubs etc can also invest. AMOUNT OF DEPOSIT  Minimum deposit is Rs.50,000/ While No Maximum deposit limit BOP PAHLAY MUNAFA DEPOSIT SCHEME (Profit in Advance) The detail of profit rates are as follows TERM

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PROVISIONAL * PROVISIONAL MULTIPLIER PROFIT TO BE PAID PROFIT RATE P.A. FACTOR IN ADVANCE (WHT (ANNUALIZED RATE

EFFECTIVE RATE OF EXPECTED

Page 18

TO BE DEDUCTED)

OF EXPECTED RETURN)

RETURN

03 months

Rs. 2,500

10.00 %

0.025

10.25 %

06 months

Rs. 5,000

10.00 %

0.050

10.53 %

12 months

Rs. 10,350

10.35 %

0.1035

11.54 %

15 months

Rs. 12,800

10.24 %

0.128

11.74 %

18 months

Rs. 14,000

9.333 %

0.140

10.85 %





  

* This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates half yearly and terms & conditions of profit and scheme The provisional profit will be paid in advance i.e. at the time of investment. Zakat will be deducted as per law, wherever applicable. With holding tax will be deducted as per law. The above expected rates are effective from 08-06-2010 for all fresh deposit procured/accounts opened under the BOP PahlayMunafa Scheme. These rates will not be applicable to deposits already booked in these schemes till the time they are matured.

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PREMATURE ENCASHMENT:

The profit shall be paid on prevalent normal term deposit rates. Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature encashment, corresponding rate applicable to the period of retention then declared by the Bank will be paid, provided deposit is kept for a period not less than 7 days. The difference amount will be recovered from the principal amount. With-holding Tax deducted in advance and paid to Tax Authorities shall not be refunded at the time of pre-mature encashment. However Advance Tax Deduction Certificate will be issued to the customer for claiming refund from the Tax Authorities.

MISCELLANEOUS The provisional profit will be paid in advance i.e. at the time of investment. The provisional profit will be credited into customers PLS/CD account. For further details, please contact your nearest Branch

CORPORATE PREMIER TERM ACCOUNT

His account has been introduced for corporate clients. This is a non operating/chequing account. Minimum amount of investment is Rs.500 (M). The deduction of Zakat and Withholding tax will be applicable as per law of the land. Profit payable at maturity

GENERAL CORPORATE ENTITIES 01 Month

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03 Month

5.50%

06 Month

5.75%

01 Year

6.00%

05 Years Above

& 6.50%

MUNAFA HI MUNAFA TERM ACCOUNT - III

The product is available for all types of customers who are eligible to invest in term deposit as per Bank's criteria. The term account can be opened singly or jointly.

TERM

*EXPECTED PROFIT RATES P.A.

1 month 3 months 6 months 1 year 2 year

7.00 % 8.75 % 9.25 % 11.40 % 11.60 %

PROFIT PAYMENT ON MINIMUM AMOUNT MONTHLY BASIS (WITH OF DEPOSIT RS HOLDING TAX TO BE DEDUCTED) 100,000/Rs.583 100,000/Rs.729 100,000/Rs.771 100,000/Rs.950 100,000/Rs.967

• This product is governed under PLS rules i.e. the rates mentioned are provisional and the Bank reserves the right to revise/revisit the profit rates under Profit & Loss sharing system and terms & conditions of scheme. • The above expected rates are effective from 26-04-2010 for all fresh deposit procured/accounts opened under the Munafa-Hi-Munafa Scheme III. These rates will

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not be applicable to deposits already booked in these schemes till the time they are matured. * Please note the rates will be reviewed on monthly basis.    

Main terms & conditions are as follows: Minimum deposit is RS.100,000/No Maximum deposit limit The profit will be paid on monthly basis Withholding Tax and Zakat will be deducted as per law, wherever applicable * All other terms & conditions circulated earlier will remain the same BAI MISAAL TERM DEPOSIT ACCOUNT

The product is available for all types of customers who are eligible to invest in term deposit as per Bank's criteria. The term account can be opened singly or jointly.

TERM 1 year 2 year

*EXPECTED MINIMUM PROFIT TO BE PAID ON PROFIT AMOUNT OF MATURITY (WHT TO BE RATES P.A. DEPOSIT RS DEDUCTED) 12.00 % 12.25 %

100,000/100,000/-

Rs. 12,000 Rs. 24,500

TOTAL AMOUNT TO BE PAID ON MATURITY (WHT TO BE DEDUCTED) Rs. 112,000 Rs. 124,500

 This product is governed under PLS rules i.e. the rates mentioned are provisional and the Bank reserves the right to revise/revisit the profit rates under Profit & Loss sharing system and terms & conditions of scheme. The above expected rates are effective from 26-04-2010 for all fresh deposit procured/accounts opened under the BaiMisaal Term Deposit Scheme. These rates will not be applicable to deposits already booked in these schemes till the time they are matured.  Please note the rates will be reviewed on monthly basis. Main terms & conditions are as follows:    

Minimum deposit is RS.100,000/No Maximum deposit limit The profit will be paid on maturity along with principal amount Withholding Tax and Zakat will be deducted as per law, wherever applicable

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Rules governing normal PLS Term Deposit shall apply i.e. In case of pre-mature encashment, corresponding rate applicable to the period of retention then declared by the Bank will be paid, provided deposit is kept for a period not less than 7 days. Please note profit shall be paid on prevalent normal term deposit rates. All other terms & conditions circulated earlier will remain the same.

Profit Loss Sharing Chequing Accounts PLS SAVING ACCOUNT The Accounts shall be opened upon submission of duly filled-in Bank’s prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary The Accounts shall be opened with an initial/minimum deposit as stipulated by the Bank from time to time unless specifically exempted.\

The Accounts may be opened singly in one name or jointly in two or more names. A distinctive number shall be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. The Bank reserves the right to change the Account Number or any part of it in order to meet its book keeping/administration requirement. However, intimation of change in the account number shall be sent to the account holder.

Account for the recipient of Zakat or recipient of grants from Bait-ul-Mall, maybe opened with an initial deposit of Rs.100/Deposit may be accepted from minors provided the account is opened and operated through a guardian. The Account thus opened will continue to be operated upon by the guardian even if the minor attains the age of majority. The necessary consent to this

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effect will be obtained at the time of opening of the account. The orders of the court will, however, are followed in case the guardian is appointed by the court.

All monies/instruments to be deposited in an account should be accompanied by pay-inslip showing the title and number of the account. The entry of transaction shall be authenticated by putting Bank’s stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. However in case of branches where teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits.

Withdrawals will not be allowed against postdated (payable on any future date) and stale (06 months after issuance date) Cheques and against un-cleared funds. Where any account is not conducted to the satisfaction of the Bank, the account may be closed without any notice and the balance will be remitted to the depositor at the address given by the Account Holder(s).

PLS Savings Accounts may also be opened by charitable institutions, for Provident Funds and other funds of benevolent nature by Local Bodies, Autonomous Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc. and in all other cases where such accounts are required to be opened under the orders of Competent Court of Law Not more than one PLS Savings Account may be opened at a branch in any one name except in the name of a parent or guardian for more than one child or for keeping funds of specified nature category by an entity, with the Bank’s prior approval.

Profit payable or Loss recoverable on PLS Saving Accounts to be credited or debited will be determined by the Bank at its sole discretion on the basis of its net working results at the end of each half-year within the time prescribed by SBP from the date of the close of the half-yearly books of accounts of the Bank. The rates of profits may vary

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from period to period via January to June/July to December each year. Calculation of Profit on PLS Saving Accounts will be made for each calendar month on the lowest credit balance of an account between the close of the 6th day and the last day of the month. However, profit accrued even for Re. 1/- after deducting withholding tax will be payable to all Account Holders. When an account is CLOSED before declaration of profit rates, the accrued profit will be first credited in the account at the profit rates previously declared by the Bank. However, no recovery or payment of profit as a result of increase/decrease in the rate of profit will be affected upon such A/C holders after announcement of half-yearly profit rates by the Bank.

The Bank has the right to refuse to open an Account without assigning any reason. Withholding Tax at the rate notified by the Government of Pakistan from time to time will be deducted out of profits payable to the Account Holders.

ZAKAT is leviable on the assets as described in the Zakat &Ushr Ordinance 1980 (as amended from time to time) on balances which will fall within the definition of zakatable assets as notified by the Government of Pakistan on valuation date each year, provided Declaration (original/attested photocopy) for exemption from compulsory deduction of zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner one month preceding the valuation date except in the case of newly opened accounts.

The branches shall ensure completion of all the formalities required by State Bank of Pakistan vide Prudential Regulation No.M-1with regard to KNOW YOUR CUSTOMER,

SENIOR CITIZENS SAVING ACCOUNT

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This is a saving bank product available for all senior citizens i.e. persons of 60 years and above who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or preferably jointly (husband & wife) provided either of them is of 60 years or above. This product is designed to attract procure deposit/savings of senior citizens by offering attractive, innovative incentives and higher rate of profit to senior citizens.

The Main Features are: A customer can open only one BOP Senior Citizens Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges.

The profit slab is as follows:

Minimum Monthly Balance

* Expected rate of profit

Rs. 0 up to 200,000/-

Normal PLS SB rate

Rs.200,001 up to 400,000/-

5 7 % p.a.

Rs.400,001 up to 500,000/-

8 % p.a.

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Over Rs. 500,000/-

5 % p.a.

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly.

Maximum profit @ 8.0 % p.a. as per different slabs shall be paid on minimum monthly deposit up toRs.500; 000/-Deposit can exceed Rs.500, 000/- however will be paid at normal PLS-SB-Account rate on amount over and above Rs.500, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month.

The profit will be credited on monthly basis in the respective account. Profit once disbursed will not be recovered in case of decrease in rate at the time of announcement of Half Yearly profit rates. However in case of rise in profit rate the difference amount will be paid.

Existing senior citizen account holders can also open account under this scheme. Withholding tax will be deducted from the profit as per law in force Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders.

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Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card Free complimentary issuance of first Cheque Book of 25 leaves 25 % reduction in rental charges of small or medium locker subject to availability. Priority banking especially in utility bills payment, counter service etc

The product carries all characteristics/conditions pertaining to PLS SB account i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of profit which shall be paid on monthly basis on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

GHARAYLOO SAVING ACCOUNT:

This is a saving bank product available for all females who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or jointly with husband. This product is designed to attract procure deposit/savings of ladies particularly housewives of expatriates & students.

The Main Features are:

A female can open only one BOP Gharayloo Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-.

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However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges

The profit slab is as follows:

MINIMUM MONTHLY BALANCE

* EXPECTED RATE OF PROFIT

Rs. 0 up to 10,000/-

Normal PLS SB declared rate

Rs. 10,001 up to 250,000/-

7.25 % p.a.

Over Rs.250,000/-

Normal PLS SB declared rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly. Maximum profit @ 7.25 % p.la.Shall be paid on minimum monthly deposit up to Rs.250, 000/- but over Rs.10, 000/-. Deposit can exceed Rs.250, 000/- however, profit will be paid at normal PLS-SB-Account rate on balance over and above Rs.250, 000.

The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month.

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The profit will be credited on monthly basis in the respective account. Profit once disbursed will not be recovered in case of decrease in rate at the time of announcement of Half Yearly profit rates. However in case of rise in profit rate the difference amount will be paid. Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders.

Unlimited transaction (debit/credit) Free complimentary issuance of first ATM/Debit Card 25 % reduction in rental charges of small or medium locker subject to availability Priority banking especially in utility bills payment, counter service etc.

The product carries all characteristics/conditions pertaining to PLS SB account i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges except payment of profit which shall be paid on monthly basis on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

ZIADA MUNAFA SAVING ACCOUNT

This is a saving bank product available for general public i.e. persons who are eligible to open a saving account as per our Bank’s criteria. The account can be opened singly or jointly. This product is designed to attract procure deposit/savings of general public particularly salaried and small investors. A customer can open only one BOP ZiadaMunafa Saving Account singly or jointly regardless of the branch. In case it is found out that more than one account exists under this category, the Bank reserves the right to recover & forfeit the profits paid or not to give any profit. The account can be opened with a minimum initial deposit of Rs.10, 000/-. However in case average deposit during the month falls below Rs.10, 000/-, account maintaining charges shall be levied as per Bank’s Schedule of Charges. The profit slab is as follows:

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MINIMUM MONTHLY BALANCE Rs. 0 up to 400,000/Rs.400,000 up to 500,000/Over Rs.500,000

* EXPECTED RATE OF PROFIT Normal PLS SB rate 7.5 % p.a. Normal PLS SB rate

*This product is governed under PLS rule of Profit & Loss sharing system. The rates mentioned are expected and the Bank reserves the right to review/revise the profit rates quarterly. Maximum profit @ 7.5 % p.a. as per different slabs shall be paid on minimum monthly deposit up to Rs.500, 000/-Deposit can exceed Rs.500, 000/- however, profit will be paid at normal PLS-SB-Account rate on amount over and above Rs.500, 000. The profit will be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month. The profit will be credited on half yearly basis in the respective account as per rules of PLS SB. Withholding tax will be deducted from the profit as per law in force. Preferably PLS SB joint a/c should be opened with special instructions of “Either or Survivor” which must be jointly authenticated under full signatures of the Joint A/c holders. Unlimited transaction (debit/credit) free complimentary issuance of first ATM/Debit Card The product carries all characteristics/conditions pertaining to PLS SB account including payment of profit on half yearly basis i.e. issuance of DD/TT/MT/PO etc as per Bank’s Schedule of Charges on minimum monthly deposit as per admissible rates shown against each minimum monthly balance.

Loan Products

COMMERCIAL FINANCE:  Against Pledge of Shares  Against Government Securities

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 Against Hypothecation of Stocks

Against Pledge of Shares

His facility is generally extended to companies or individuals on selective basis against pledge of tangible securities such as Shares. Such financing is supportive to secondary Capital Market concept. The facility is required to be adjusted periodically or within the period as specified in the Sanction Advice/DAC. Given that Stock Market in Pakistan is volatile, banks are required to refrain from extending loans to the market players who are engaged in speculations for short term “Gains”, which quite often they fail to make, consequently rendering the facility to non-performing ultimately.

POLICY

Advances against shares shall not be allowed to:

 Take exposure against the security of shares/TFCs issued by them.  Provide unsecured credit to finance subscription towards floatation of share capital and issue of TFCs.  Take exposure against the non listed TFCs or the shares of companies not listed on the Stock Exchange(s).  Take exposure on any limited company against the shares/TFCs of that company or its group companies.  Take exposure against sponsor director’s shares (issued in their own name or in the name of their family members) of banks/DFIs.  Take exposure on any one person (whether singly or together with other family members or companies owned and controlled by him or his family members)

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against shares of any commercial bank/DFI in excess of 5% of paid up capital of the share issuing bank/DFI.  Take exposure against the shares/TFCs of listed companies that are not members of the Central Depository System.  Take exposure against unsecured TFCs or non rated TFCs or TFCs rated below ‘BBB’ or equivalent.  Unless otherwise adequately secured by other acceptable collaterals, Advance to finance “Subscription”, towards floatation of “Share Capital” of public limited company, is not allowed, under Credit Policy.  Advances approved shall be within “Per Party Limit” (i.e, 30% of un-impaired equity of Bank for fund based and non fund based subject to condition that the maximum outstanding against fund based exposure doest not exceed 20% of Bank’s equity) and supported by positive CIB/DFIs confidential reports.  Loans exceeding Rs. 500,000/- (Total Accommodation) shall not be more than 10 times of Borrowers’ Equity i.e. Capital and Reserves minus losses and 04 times in case of fund based facility, as disclosed in their balance sheets.  Financing shall be allowed against shares registered in the name of “Borrower”, however in case the shares tendered for pledge are registered in the name of a “Third Party”, the letter of lien shall be signed by the Third Party and not by the Borrowers.  Advances Department Head or RCAD shall conduct a monthly review of financing against shares and exercise vigilance over: - Market Rates of pledged shares. Their marketability. Dividend/Bonus declarations etc Minimum Margin Requirements

1. Exposure against Shares of Listed Companies shall be subject to minimum margin of 30% of their current market value as per prevalent Prudential Regulations, which may at the discretion of the Bank be set higher. However, in terms of the Prudential Regulations the Bank shall monitor the margin on at least weekly basis and shall take appropriate

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action for top-up and sell out, on the basis of approved Credit Policy and prior written authority from the borrower.

AGAINST GOVERNMENT SECURITIES:

Government Securities include Defense Saving Certificates (DSCs), Special Saving Certificates (SSCs), Regular Income Certificates (RICs), and Behbood Certificates, US Dollar Bonds & NIT Units etc, issued by National Saving Centre Government of Pakistan/National Investment Trust. Large amount of funds representing “Provident Fund”, Benevolent Fund collections are invested in the Government Securities, which are yielding better return compared to placements with Commercial Banks. Banks also extend credit facilities against pledge of “Deposit Certificates” or other instruments of value issued in the name of Individuals, Joint Holders Public Bodies, and Firms, issued by various Government regulated Investment/Saving Organizations, which at the moment are restricted to Maximum of Rupees One Million and are subject to change.

1) POLICY a. All Credit Financing against pledge of Securities require Credit Limit approved by Credit Committee, even if 100% covered by cash or collateral. b. Documents complete in all respect duly vetted by Bank’s legal counsel signature verified shall be obtained ensuring their validity in a “Court of Law”. Signatures shall be verified in pencil on each document.

AGAINST HYPOTHECATION OF STOCKS:

Industrial organizations have to invest a large sum of money to build stocks of raw material to up keep their manufacturing line. This is apt to create liquidity constraints in

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the Financial Balance Sheet of the customer. To manage such financial gaps/shortfall in their cash flow they usually resort to borrowings from Banks against Hypothecation of raw material/semi or finished goods held by them in their stocks. Banks in such cases although do not have a physical custody of the goods, however have a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take custody of the stocks, in the event the borrowers default to repay the loan or fail to meet their obligations, as agreed.

Criteria to merit this facility is provided in the Banks Credit Policy Manual, which is care fully assessed by Risk Managers, while recommending a credit proposal to credit committee. Some of the basic requirements are as follows which are included for general understanding of the Processing Officers at Branches/CAD:- It shall be ensured that the borrowers have absolute title to the goods and the same are not encumbered or previously hypothecated to any other Bank.

Formal charge (First/Second/PariPassu) is created in the name of the Bank. Goods offered are not perishable, or have short expiry period and do not warrant special storing. Stocks offered for hypothecation are easily marketable and its price is not highly fluctuating, otherwise the Bank retains higher margin. Stocks under hypothecation are not restricted by SBP/Government as a policy to maintain market supply.

POLICY

Advances against hypothecation of goods is subject to the policies as applicable to other loans, and as spelled out in the Credit Policy Manual with the exceptions given below:

Stock reports, duly signed by borrowers, are received periodically at a frequency as spelled out in the DAC/Credit Proposal etc.

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



Limits are adjusted by CAD in the system in accordance with the Drawing Power worked out each time a stock reports is received and value of stocks reassessed by applying latest Pricing Index. Negative Variance between the net value of stocks (i.e, market value less margin) and the outstanding advance shall be reported to the relationship/Risk Manger, who shall advise the borrowers to cover the shortfall by additional stocks or adjust the facility accordingly.

Cash Finance This facility is generally provided against pledge of goods. Under this type of financial accommodation the facility amount is disbursed in specially opened account for the purpose. The pledged goods are released to the borrower against cash payment only. In case the goods pledged are seasonal in nature, the customer would be required to adjust the facility before the season ends. Rollover shall not be allowed. POLICY:Basic criteria to qualify for advances against pledge of goods are as follows:-

Facility is disbursed in specially opened CF A/C for the purpose It shall be ensured that Goods tendered for pledge are:  

 

Free from credit restrictions imposed by State Bank of Pakistan Not perishable, do not require special Storing arrangements / conditions and have short expiry period. Easily marketable and their price is not highly fluctuating. If so higher margins shall have to be approved & retained Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the drawing power. Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the D.P. The borrowers hold an absolute un-encumbered title to the goods

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Consumer Finance     

Aasaish Loan Quick cash Car Loan House Loan Smart Cash Personal Loan

BOP Aasaish Loan

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

Brands/ Products

Down Payment

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  

Salaried Individuals (SI) Self Employed Professionals (SEP) Self Employed Businessmen (SEB)

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

0%

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Tenure / Loan Amount / Mark-up Rate

Charges Details

Tenure

Mark-up Rate (Reducing balance method)

6 months

0%

9 Months

8% p.a

12 Months

11%p.a.

18 Months

15%p.a.

24 Months

18%p.a. Processing Charges = Rs. 500/- per case E-CIB Charges

= Rs.125/- per case UptoRs. 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.

PrePayment Penalty

No Penalty

Late Payment

3% on the amount of instalment per day for the days the amount remains overdue Max. Rs. 500/- + ChequeDishonouring Charges (as

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Penalty

per schedule of charges of the bank)

Eligibility Criteria 

Eligibility Criteria for Govt. /Armed Forces/BOP Employees 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/ 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  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.

Documents Required 

MBA 4th

For Govt. /Armed Forces/BOP Employees  Copy of valid CNIC Latest Salary Slip (Employer Certificate, if salary slip is not Page 39

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). 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.  Latest copy of utility bills (Electricity & phone) of current business address.

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

Security

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.

Quick Cash

Particulars

Bank’s Policy

About Scheme

“BOP Quick Cash is personal running finance facility for Salaried Class for meeting their day to day personal needs” Features

Target Market

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The facility shall be available for Salaried Individuals (SI) only.

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Finance Amount

Minimum amount Rs.50,000/-

Tenure

Mark-up Rate

Rs.500,000/-

The facility is available for 1 year .However, It is renewable subject to satisfactory Conduct of account, status/request of the borrower and banks usual terms & condition.

Tenure

1 year

Charges Details

Maximum amount

Mark-up Rate Avg. 1 Year ask side KIBOR + 900 BPS with floor of 19% p.a.

Frequency of Change of Mark-up rate Fixed for one year and revised at the time of renewal.

Processing Charges = Rs. 1,850/E-CIB Charges = Rs.125/- per case UptoRs. 100,000/Rs.200/- per case over Rs. 100,000/Guarantor e-CIB Charges = Rs.50/- per report Documentation Charges = Actual

Monthly 5% of outstanding amount at last date of the month OR Mark-up Installment amount; whichever is higher (Payment of Monthly Instalment before 10th of every month) 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 Penalty

In case of delayed/non-payment, additional 2% mark-up shall be charged. However, 03 grace days shall be allowed for payment

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Eligibility  Criteria  

  Documents Required      

Age between 25 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility). Minimum Monthly Take Home Salary/Income is Rs. 15,000/Permanent Employee with Minimum 03 Year of job Experience including 01 year with current employer Contractual Employees are also eligible but loan should be adjusted before 06 months of the expiry of contract. Maintaining Salary Account in any bank. Have valid CNIC 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) Two recent photographs Income Tax Return/Wealth Statement OR Non-Tax Payees Form, if applicant is a non-tax payer – In case of non-tax payee

Security 

Departmental Undertaking or 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 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

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BOP Car Loan

Particulars

Bank’s Policy

About Scheme

A lease facility for the purchase of vehicles for personal use.

Features Target Market

Finance Amount Tenure Mark up Rate

Minimum Equity

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  

Salaried Individuals (SI) Self Employed Professionals (SEP) Self Employed Businessmen (SEB)

Minimum: Rs. 200,000/-

Minimum: 01 Year

Maximum: 5,000,000/-

Maximum: 05 Years

Tenure

Mark-up Rate

1 year

Avg. 1 Year ask side KIBOR + 400 bps with floor of 17% p.a.

2 Years

Avg. 2 Years ask side KIBOR + 400 bps with floor of 17% p.a.

3&5 Years

Avg. 3 Years ask side KIBOR + 400 bps with floor of 17% p.a.

Govt. / BOP Employees Pvt. Employees SEP/SEB

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10%

15%

20%

Down Payment

Equity + Processing Charges + First Year Insurance + First Monthly Instalment

Charges Details

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

PrePayment Penalty

Pre-payment penalty @5% on principal outstanding .However, If the 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

5% on the amount of instalment Maximum Rs. 1000/- +

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Payment Penalty Eligibility Criteria

MBA 4th

ChequeDishonouring Charges (as per schedule of charges of the bank)

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  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

Page 46

through Tax Return or Income Estimation Report of outsourced agencies or Bank Statement).  Have valid Driving License & CNIC  Residing or working in launching cities. Documents Required

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 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.  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)

Security

MBA 4th



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

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the approval letter

Agriculture Credit Lease Finance Facility for Purchase of Tractor under Green Tractor Scheme 2008-2009 In the wake of Chief Minister, Punjab's agenda for promotion of Agriculture Sector, Government of Punjab has decided to provide 10000 Tractors to small farmers on subsidized rates. A subsidy of RS: 200,000/- per tractor will be provided to the farmers declared successful through computerized balloting. The scheme has been titled as "Green Tractor Scheme 2008-09". In order to facilitate farmers and to grasp maximum business, our Management has approved a special product titled as "LEASE FINANCE FACILITY FOR PURCHASE OF TRACTOR UNDER GREEN TRACTOR SCHEME 2008-09" with following terms & conditions: ELIGIBILITY: All Farmers who have been declared successful through computerized balloting The applicant should be a resident, owner/self cultivator of minimum 05 Acres of agri land free from all encumbrances. Existing BOP borrowers having land under Bank's charge are also eligible under this scheme. The applicant should not be a defaulter of any Financial Institution. PRICE OF TRACTOR: The price of Green Tractor would be less by RS: 200,000/- from market price of tractor. Subsidy of RS: 200,000/- will be provided by Govt. Of Punjab directly to Tractor Manufacturers

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MAKE OF TRACTOR: Government of Punjab has approved M/s Millat Tractors (Pvt.) Ltd. and Al-Ghazi Tractors Limited as Local Manufacturers of tractors for the scheme.

AMOUNT OF FINANCE: The amount of finance will be equal to the price of locally manufactured tractor less subsidy amount of RS: 200,000/- to be provided by the Government of Punjab. However, maximum amount of facility will not exceed the ex - factory price of tractor.

EQUITY: No Equity for Tractors having price up to RS: 500,000 10% equity of Subsidized Price (actual price - subsidy amount) for all Tractors having price above RS: 500,000/-

SECURITY: • Leased Asset (Tractor) itself (Tractor will be registered solely in the name of The Bank of Punjab). • Charge on Agriculture Land through Agri. Pass Book. • Two written satisfactory market checking reports

MARGIN ON COLLATERAL SECURITY: • 25% margin on three years OstBai of Agri Land as assessed by Revenue Officials. • 50% margin on FSV of Agri Land as evaluated by Bank's approved surveyor (s).

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INSURANCE: Asset Insurance and Life assurance of the Borrower (assigned to BOP) as per Bank's policy Insurance, Registration and evaluation charges (if any) etc shall be borne by the farmer.

MARK-UP: 18% per Annum

VALIDITY: 05 Years from the date of disbursement.

REPAYMENT: 10 Equal Half Yearly Installments (Principal + Mark up).

Agriculture loans

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Kisan dost scheme Agriculture Schemes Markup Scheme for Controlled Shed Agriculture Finance Scheme Model Dairy Farms

Kisan Dost Tractor Finance Scheme PURPOSE: Provision of financial facility to the farmers and non farmers (those who provide tractors to farmers on rental basis for various tractor related operations), for purchase of Tractor on Lease Finance Basis

ELIGIBILITY: Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres. OR The persons who are related with the business of providing services for tractor related farming practices to the farmers on rental Basis.

AMOUNT: Maximum Rs. 750,000/-. EQUITY: 10% to 20% of the cost of Tractor will be paid by the borrower on case to case basis.

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SECURITY: 1. Lease Tractor (to be registered in the name of Bank) 2. Charge on Agriculture Land through Agri. Pass Book. 3. One personal guarantee of reputable person. Two written satisfactory market checking reports

MARGIN ON COLLATERAL SECURITY: 50% Margin on Agri land assessed by PBA’s Approved Surveyor. 25% Agri land as per value in revenue record. The maximum amount of Finance will be allowed upto 75% of the OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE: The Lessee will arrange comprehensive insurance of tractor. Life assurance of lessee under the Bank’s charge MARK-UP: 18% per Annum

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

Agriculture Schemes Markup

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Name of Scheme

Type

Rate of Markup

FARM SECTOR Kissan Dost Agrimall Finance Scheme (LEASE FINANCE)

Development

18% p.a

Kissan Dost Agrimall Finance Scheme (LEASE FINANCE)

Development

18% p.a

Forced D/F Agri Loan against L/G & L/C etc.

Development

18% p.a

Kissan Dost Mechanization Support Scheme

Development

18% p.a

K.D. Aabiari Scheme

Development

18% p.a

Kissan Dost Islah-e-Arazi Scheme

Development

18% p.a

K.D Commercial Agro Services Scheme

Development

18% p.a

K. D. Green House Finance Scheme (D/F)

Development

18% p.a

K. D. Green House Finance Scheme (L/F)

Development

18% p.a

K.D. Cold Storage Finance Scheme (L/F)

Development

18% p.a

K.D. Cold Storage Finance Scheme (D/F)

Development

18% p.a

K.D. Drip Irrigation System Finance (L/F)

Development

18% p.a

Green Tractor Scheme

Development

18% p.a

K.D. Farm Transport Scheme

Development

18% p.a

Kissan Dost Commercial Tractor Lease Finance Scheme

Development

18% p.a

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Kissan Dost Agriculture Finance Scheme

Production

18% p.a

K.D Agriculture Corporate Farming Finance Scheme

Production

18% p.a

Kissan Dost Agrimall Finance Scheme (R/F)

Production

6 month KIBOR + 350 BPS with floor rate of 12% P.A

K.D. Cold Storage Finance Scheme (R/F)

Production

18% p.a

K. D. Agriculture Corporate Farming Finance Scheme

Production

18% p.a

K. D. Green House Finance Scheme (R/F)

Production

18% p.a

Scheme for Controlled Sheds

PURPOSE The purpose of this scheme is to provide finance: For Construction of new Controlled Poultry Sheds For remodeling of existing Sheds in to Controlled Sheds For modernization/remodeling of existing sheds by replacing equipment machinery Import of Machinery/Equipments related to Controlled Sheds

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ELIGIBILITY A genuine farmer engaged in Agri related activities directly or indirectly having a suitable land to erect Controlled Sheds Not a defaulter of any Financial Institution Having land free from all encumbrances to be offered as security

NATURE & AMOUNT OF FACILITIES

MEDIUM TERM DEMAND FINANCE FACILITY (D/F) Amount of Finance (For construction of Controlled Sheds for Poultry Farming) 70% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

EQUITY: 30% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

MEDIUM TERM LEASE FINANCE FACILITY (L/F) AMOUNT OF FINANCE (For purchase of machinery and equipments for modernization/remodeling of existing poultry sheds (Feeding System, Nipple System, Cooling Pads, Fans, Heaters, Generators and Weighbridge etc) 80% of purchase price of Equipment/Machinery

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Letter of Credit Facility L/C Facility for import of equipments/machinery to be installed in the Controlled Shed   

Import L/C (sight) Cash Margin 20% Retired through L/F of 5 years period Lease Key Money 20%



TENURE OF FACILITIES Five Years in case of Demand Finance with grace period of ONE YEAR Five Years in case of Lease Finance

TYPE OF SECURITY 1. Primary Leased Assets in case of Lease Finance Facility (receipt will be issued in the name of the Bank of Punjab)

2. Collateral Charge on agriculture land through Agri Passbook OR Charge on urban immovable property through equitable/registered mortgage the property should be cleared by the banks approved legal counsel and will be assessed by the Banks and PBAs approved surveyor. OR · Liquid security in shape of Bank’s Fixed Deposit Receipt/DSC/NSC or Regular Income Certificates. · One personal guarantee of a reputable person. ACO along with Regional Chief can waive this condition if they deem the borrower to be credit worthy. Margin on Security

IN CASE OF OAST BAI

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The maximum amount of Finance will be allowed up to 75% of the OastBai Value (duly verified by Revenue Officer) of Agri Land IN CASE OF MARKET VALUE OF AGRI/URBAN/COMMERCIAL LAND The maximum amount of Finance will be allowed up to 50% of the Forced Sale Value of the property as evaluated by PBA/Bank’s approved surveyor. INSURANCE Comprehensive Insurance (assigned to BOP) of the Leased Assets at borrower’s cost Life assurance of the borrower (assigned to BOP) Application of Markup Rate For Demand Finance 18% per Annum For Lease Finance 18% per Annum

DISBURSEMENT In case of Medium Term Demand Finance Facility the loan will be disbursed in the following manner: 40% for base structure, foundation and purchase of raw materials 40% for construction of Boundary Wall and other civil works 20% for finishing purposes Each tranche will be released after proper verification by Executive Incharge Agriculture, Branch Manager and ACO of the respective Branch. In case of Medium Term Lease Finance Facility the loan will be disbursed in the following manner. Payment will be made directly to the vendors/suppliers. The original cash receipts/invoices will be in the name of the Bank of Punjab.

REPAYMENT 20 equal quarterly installments (Principal + Mark up) in case of Lease Finance 16 equal quarterly installments (Principal + Mark up) in case of Demand Finance Facility. This

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scheme would be a part of our existing Kissan Dost Livestock Development Finance Scheme.

Kisan Dost Agree Finance Schemes

PURPOSE:

Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers, pesticides, fungicides e.t.c)

ELIGIBILITY: Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres. The applicant should not be defaulter of any other Bank and property should be free from any encumbrances AMOUNT: Maximum Rs.500, 000/- according to per acre limit of the crop

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SECURITY: Charge on Agriculture Land through Agri. Pass Book. OR Registered / Equitable mortgage of urban property assessed by PBA’s approved surveyor and cleared by Bank’s legal counsel OR Liquid security in the shape Bank’s Fixed Deposited Receipts/DSC/NSC or Regular Income Certificates One Personal guarantee of reputable person. ACOs along with Regional Chief can waive this condition if they deem the borrower to be very credit worthy two written satisfactory market checking reports.

MARGIN ON COLLATERAL SECURITY: 50% Margin on Agri land or urban property assessed by Surveyor 25% margin on liquid security or Agri land as per value in revenue record. The maximum amount of Finance will be allowed up to 75% of the OastBai Value of land (OastBai is verified by Revenue Officer)

Insurance: Borrower will to arranged Crop Insurance and Life assurance by company on bank’s panel.

MARK-UP: 18% per Annum

REPAYMENT: Principal Once in a year & Markup on half yearly basis

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RENEWAL: Automatic renewal upon adjustment of entire principal with full markup within one year Fresh documents will be obtained after three years.

Model Dairy Farms (PDDC)

PURPOSE: Lease Finance Facility to purchase Dairy Farm Machinery for up gradation of Farm infrastructure. Following items will be permissible.     

Farm cooling tanks. Fodder harvesters. Hay bailers. Animal cooling systems. Any other machinery/equipment advised by PDDC that is necessary for Farm up-gradation. ELIGIBILITY: I) the applicant should be having his owned/leased Dairy Farm. II) Recommended by PDDC. Amount: Bank will provide Lease Finance between 70% to 90% of the cost of assets ( on case to case basis).

EQUITY: From 10% to 30% of the cost of Equipment (on case to case basis)

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PRIMARY SECURITY: Leased assets in the name of the Bank (Cash Memo/Invoice in the name of Bank).Hypothecation of stocks (if any) Collateral Security: Charge on Agriculture Land through Agri. Pass Book/Registered and Equitable Mortgage of Urban Immovable property/Lien on liquid security (Bank’s Term Deposit Receipts/National Saving Certificated)

MARGIN ON IMMOVABLE SECURITY: 25% to 50% margin on FSV of immoveable security (Agri land /urban property). & 10% margin on liquid security. The maximum amount of Finance will be allowed up to 75% of the OastBai Value of land (OastBai is verified by Revenue Officer)

INSURANCE: Comprehensive Insurance of the Leased assets at the borrower’s cost. Life assurance of the borrower, assigned to BOP.

MARK-UP: Average 6 month’s KIBOR + 250 bps to 495 bps with floor of 10% per annum to be paid by PDDC according to the repayment schedule of the principal amount. VALIDITY: Up to five years in case of Lease Finance Facility

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REPAYMENT: Equal quarterly installments (Principal only)

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.

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

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

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

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

Live Stock Development Scheme

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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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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

Trade Processing Centers

Foreign Trade operations are centralized at The Bank of Punjab and being handled at 10 TPC (Trade Processing Centre) designated branches out of 273 branches country wide. These Trade Processing Centers are well equipped with modern communication technology like SWIFT, E-Mail & Fax etc. and manned by staff having expertise in their field of work. Our non TPC branches route the trade related transactions of their customers through these designated TPCs. All our TPCs extend full co-operation to the

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importers / exporters and also provide valuable guidance to execute their transaction in line with the laid down procedures as per State Bank & Government policies.

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

This group performs its function through its following two units:

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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 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.

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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.

SERVICES: BOP provides a wide range of services to meet requirements of its valuable corporate clients. Few of the services are.      

   

Working Capital Finance including overdraft, FE Loans etc. Pre and Post shipment Export Financing(PKR and USD based) Import Financing(PKR and USD based) LMM Funding Cash Management Services Trade Services including Letter of Credit, Letter of Guarantee and Standby Letter of Credit, etc. Corporate Centres CIBG, Head Office, Lahore CBU Faisalabad CBU Karachi CBU Islamabad

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      

Corporate Branches Main Branch Lahore M.M. Tower Branch Lahore Railway Road Branch Faisalabad Quaid-e-Azam Road Branch Multan Jinnah Avenue Branch Islamabad Main Branch Rawalpindi I. I. Chudrigar Road Branch Karach

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 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 Level

Utility Bills

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

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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. We are offering lockers facility at our following locations/branches: Locker Size

Annual Fee

Small

Rs.1,200

Medium

Rs.1,800

Large

Rs.3,000

Extra Large

Rs.6,500



Key deposit equivalent to two years rent for respective locker is payable in advance  Locker holder need to have an account with us. So put your valuables in a safe place and sleep well ATM Locations

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The Bank of Punjab has a network of 67 ATM branches across the Pakistan. To better guide our customers, we have made the listing of all the branches. Click on the city and get a look on all the ATM branches in that city.

Lahore Islamabad Rawalpindi Faisalabad Multan Gujranwala Sialkot Sheikhupura Gujrat

Sargodha Muridhke Kasur Mianwali Depalpur Lalamusa WahCantt Sahiwal Jauharabad

D.G Khan Layyah Peshawar Abbottabad Karachi Bahawalnagar Chiniot Attock Bhakkar

Jhelum Kamoke Peer Mehal Ranjanpur Muzaffarg arh Vehari Hyderaba d Quetta

1Link Network

The Bank of Punjab Debit Card could be used in an 1-Link network as well as in M-Net network. Customer areadviced to use 1-Link network. In Pakistan, the 1-Link ATM facilities can be availed at any of the following banks and locations:           

AlBaraka Islamic Bank Limited Allied Bank Limited Askari Commercial Bank Limited Atlas Bank Limited Bank-al-Habib Limited Bank Alfalah Limited Bank Of Khyber Bank Of Punjab Bank Islami Pakistan Limited Barclays PLC Dawood Islamic Bank Pakistan Limited

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                   

Dubai Islamic Bank Pakistan Limited Emirates Global Islamic Bank Limited Faysal Bank Limited Habib Bank Limited HabibMetropolatin Bank ArifHabib Bank Kashf Microfinance Bank JS Bank KASB Bank Mezzan Bank Limited My Bank (Bolan bank) National Bank of Pakistan NIB Bank Limited RBS (Royal Bank of Scotland) Samba Bank (Formally Crescent Commercial Bank Limited) Silk Bank Limited Soneri Bank Limited Standard Chartered Bank Tameer Microfinance Bank United Bank Limited

SUGGESTIONS The suggestions for the findings from the study are follows:

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 Non financial incentive plans should also be implemented; it can improve the Productivity level of the employees  Organization should give importance to communication between employees and gain Co-ordination through it Skills of the employees should be appreciated.  Better carrier development opportunities should be given to the employees for their Improvement  If the centralized system of management is changed to a decentralized one, then There would be active and committed participation of staff for the success of the OrganizationSWOT Analysis SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context; managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses. SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is careful evaluation of an organization’s internal strengths and weakness as well as its environment opportunities and threats. “SWOT analysis is a situational which includes strengths, weaknesses, opportunities and threats that affect organizational performance.”

In SWOT analysis the best strategies accomplish an organization’s mission by: 1. Exploiting an organizations opportunities and strength.

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2. Neutralizing it threats. 3. Avoiding or correcting its weakness. INTERNAL ASSESSMENT: STRENGTH:

 The Bank of Punjab has lack of staff members than the required staff level but its performance level is high as compared with its staff level.  As a result of the compassionate and personalized services of the officers, the clients’ perception for BOP is very high. They have trust and feel themselves to be secure while dealing with BOP.  BOP has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank  The Bank of Punjab T.T.Singh branch is one of the busy branches in the Distt.  The Bank of Punjab is 4th largest branch in region according to investment (more than 600 Million) as there are 46 branches in region.  The BOP T.T.Sing Branch is the Ist largest branch in the District as there are four branches in the Distt.  One employee in the bank performs many duties.  All staff members are well educated i.e. they hold masters degree e.g. M.com, MBA etc  There is also improvement in corporate loans and consumer loans.  All staff members treat their account holders/general public with well behavior.  Punjab bank T.T.Singh Branch is business wise best branch.

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 Bank has higher level of deposits if we compare with other banks. Deposit wise its number is 6th in Pakistani Industry.  As it is business wise busy branch so its profit after tax has become 17% higher than previous year.  In Punjab bank, there is computerized system so performance automatically has been increased having better results.  Compliance all risk mitigation policies and procedures. The bank’s management realizes the necessity of existence of effective internal controls to ensure smooth operations in current technical and swift business environment.  The management feels confident that all internal controls procedures are adequate to effectively and efficiently meet the operational requirements.  Comprehensive risk management policies for credit, operational and market risks are being implemented. Necessary steps have been taken to ensure effective monitoring of risks and to observe compliance all risk mitigation policies and procedures.  The Bank officers of BOP are considered as one of the most able professionals in the banking world (some belong to BCCI). However, they have added some local flavor in accordance with their targeted segmented. In my observation that they interact with their clients as if they are their personal friends and discuss about their problems as their own.  Good security system, diversification of investments, foreign reserves.  Not excellent but good facilities are given to employees.

WEAKNESS:

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 Level of bad debts is improving at higher level.  There is yet no ATM machine in Punjab bank T.T.Singh Branch.  There is also lack of workplace in the Bank.  Lack of proper internal controls is one of the major weakness of BOP. It is also pointed by the auditor in his review.  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.  I observed during my internship that some of the employees were burdened with over work. So I think that the work should be distributed according to their post and capabilities.  As each staff member performs many duties in one time so this capture extra time which can slows down the performance.  Due to lack of workplace, staff members as well as the general public face disturbance in the bank.  There is no corporate credit department in theT.T.Singh branch.  Biased selection of employees.

EXTERNAL ASSESSMENT: ENVIRONMENTAL OPPORTUNITY:

 The

Bank

of

Punjab

compete

its

competitors

by

encouraging

agriculture loans. So in such a way it plays an important role for promotion of agriculture sector.  All the opportunities of the 21st century are to be availed in the information technology. Information technology is the future of this dynamic world. Therefore BOP should emphasize much on IT, especially on E-Banking. Bank can design a universal account like other foreign banks, to enhance online facilities.

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

Bank also encourages industrial sector. So in such a way most of industrialists deal with Punjab Bank as a result Bank maintains large size of deposits.

 However the year 2008 will prove to be another challenging year for the

bank

with

scattered

opportunities

and

tough

competition.

Diversification, innovation and mission driven approach are the key to success. 

Management of the bank is committed to continue its efforts for outstanding performance. Improvement in stakeholders’ value shall be ensured through progressive but cautious business expansion with strategic branch network extension and introduction of innovative products in all areas of business.

 BOP has introduced a number of financial schemes including special ‘Deposit Accounts’. These accounts have their unique features. During the last three years, BOP deposits have been increasing @ 40%, which is a very healthy sign. Therefore, with the commencement of new schemes there can even be a greater increase in its deposits.  Great opportunity of starting Islamic banking system.

ENVIRONMENTAL THREAT:

 Currently The Bank of Punjab is facing major threat in Pakistan that is private businessmen do not prefer the Bank of Punjab due to the standard as compare to private bank.  BOP is facing a strong competition by its competitors, Business of all these Banks are growing at very high pace.  Despite the difficult circumstances that confronted the banking sector in particular and the country in general, BOP has been still highly profitable. But, the facts can’t be denied

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and there might be an adverse impact of such situation. In recent Hameesh Khan (Previous President Fraud) is an example.  Low security, economic and political instability.

CONCLUSION

While making an analysis of The Bank of Punjab, as a financial institution, we find that this institution came into existence in pursuance of Bank of Punjab Act, 1989 passed in the legislative Assembly of Province of Punjab. In the short span of about 15 years, it becomes the fifth largest bank in the county with 272Branches net work all over the country. I have suggested some recommendations in the light of ratios and SWOT analysis. BOP has negative working capital in all the three years so it is essential to increase current assets and reduce investment in fixed assets. While having an opportunity to go for internship at the branch, I have observed the following reservations:The Branch is housed in small a banking premises which does not suffice the requirements of visiting clientele as well as corporate clients of the Bank. By having a glance over the current business of the branch, the same should immediately be shifted to some spacious building so that best banking services can be offered to the bank customers. Moreover, though the branch is automated yet required number of PCs etc has not been provided resultantly, the staff has to wait their turn to accomplish their daily job. Finally there is a immediate need for ATM Machine at present era.

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Reference and Sources Used Web Sites. www.bop.org..com www.bop.org.pk www.google.com www.scribd.com www.pba.com.pk www.brecorder.com.pk‘Economic review of Pakistan’ http://en.wikipedia.org/wiki/Bank_of_punjab www.bop.com/prducts/48 www.bop.com/products/35(https://www.bop.com.pk/index.php https://www.bop.com.pk/Financial/AnnualAccounts.aspx www.sbp.com.pk www.bop.com.pk http://www.antiessays.com/free-essays/74909.html

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http://www.scribd.com/doc/51440815/4/Business-Volume

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