Professional Documents
Culture Documents
SUBMITTED TO:
Imran Khan
SUBMITTED BY:
Kashif Ilyas ( 76 )
Internship Report 1
The Bank of Punjab
Internship Report 2
The Bank of Punjab
Preface
In Holly Quran Allah says “man finds nothing but for what he struggles “ Man is
always erroneous. Struggle is only thing a man can do. Endeavors are in our hands but
results are always in the hands of great Lord.
Being a student of M.B.A (Finance) the task of this internship report on the Bank
of Punjab was really a struggle demanding deed. The effort and struggle to my extent
which we could make I done it, But as said “Results” let’s see what comes from it.
Considering in mind the importance of Services Sector plays a vital role in the
growth and development of our country’s economy, I decided to choose the organization
(Bank Of Punjab) related to services sector.
Role of banking sector in services industry is known to every one. So The Bank of
Punjab is an organization which is finalized as my concerned organization because this is
mainly performing the lot of services in all over the Pakistan.
As this was my first ever practical experience. As I started the work in a state that
I am ponder how to start it but now when I am writing these lines by the “Grace of God”
My final report is finalized.
The little incidents which took place during the preparation of this report are now
part of my life memories.
Internship Report 3
The Bank of Punjab
Acknowledgement
Internship Report 4
The Bank of Punjab
Dedication
Internship Report 5
The Bank of Punjab
Table Of Contents
1 Executive Summary
5 Marketing Mix
6 Swot Analysis
7 Pest Analysis
8 HR Activities
14 Conclusion
Internship Report 6
The Bank of Punjab
Executive Summary:
I have done my internship at The Bank of Punjab, Khanewal road branch Multan. There
are four departments in the branch, and I worked as an assistant in that branch. For the
first two weeks I worked in deposit department under the supervision of Mr. Arshad,
where I have to perform following tasks:
Entering information in KYC (know your customer) forms.
Afterwards I have learnt about vouchers, checking of vouchers is essential to confirm that
correct calculation has been done. Vouchers are properly bind sealed, and checking by
the manager. I have checked the following things:
The check should not be post-dated/anti-dated.
Cash paid stamps (with dates) are duly affixed in case of cash cheques and in
case of clearing stamps is affixed.
Then another task for me was “issuing of cheques books”. It is one of the most interesting
works that I have learnt in the bank. Cheques books should be issued only after all the
formalities of the account opening forms, which have been checked by the branch
manager.
Maintaining Dispatch register and Inward Mailing register was also included in duties
assigned to me. I also used to help different employees in their work.
My work timings were from 9am to 5pm, six days in a week.
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The Bank of Punjab
The Bank of Punjab started functioning with the inauguration of its first branch of
7-Egerton Road, Lahore on November 15, 1989. The architect of the bank Mr.
Nawaz Sharif then, the Chief Minister of Punjab, performed the inauguration.
In Pakistan, over long periods of time the gap in saving and investment and
balance of trade deficit has posed serious threat to the target levels of growth The
ailments related to the budgetary deficit and public debt, both foreign and
domestic are in addition. Interestingly even such adverse circumstances growth of
real sector during the preceding year registered a favorable change, which speaks
of hidden potential and strength of economy.
Fortunately, the banking sector of the country has the well organized and properly
institutionalized system, which is the major vehicle not only for mobilization of
resources to finance trade, agriculture, and industry but also for the effective
conduct of monetary policy.
The emergence of new bank on the national scene in the early 1990s has done two
important services to the nation.
The saving base of the economy has effectively enlarged and hence the
investment opportunities have increased.
The services of the banks in the fact of severe competition have improved
considerably so that now consumer are left with extensive choice to do or
undo their business relations with these banks keeping in view quality of
their services.
The Bank of Punjab is working as a scheduled commercial bank with its
network of 241 branches at all major business centers in the country. The Bank
provides all types of banking services such as Deposit in Local Currency,
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The Bank of Punjab
The Bank of Punjab has the privilege to discharge its responsibilities towards
national progress and prosperity. Within the couple of years of its scheduling,
the bank has not only carved out for itself prominent niche in the mainstream
banking of the country but in certain areas it has the distinction of taking the
lead. In the short span of time the Bank has been able to evolve a distinct
corporate culture of its owned-based policies, which are realistic and are on
highly professional footings.
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The Bank of Punjab
Constitutional Base:
The Bank of Punjab was established under the provisions of Section 28 of Federal
List included in the 4th schedule of the Constitution of the Islamic Republic of
Pakistan 1973. The Bank was established under the Act of Punjab Assembly viz.
The Bank of Punjab Act 1989. The Bill to this effect was passed by the Provincial
Assembly on July 3, 1989 and was passed to, by Governor Punjab in accordance
with the Provisions of the Constitution on July 26, 1989. The Act defines rules
following.
1. Short title, extent, and commencement.
2. Establishment and incorporation of the Bank.
3. Share Capital.
4. Register of Shareholders.
5. Qualification of Shareholders.
6. Government to be shareholders.
7. Head Office of the Bank.
8. Board of Director.
9. Managing Director.
10. Qualification and disqualification of the directors.
11. Removal of Directors.
12. Terms of office of directors.
13. Vacancies.
14. General and special meetings.
15. Votes of the shareholders.
16. Business, which the Bank is authorized to transact.
17. Business, which the Bank is not authorized to transact.
18. Auditors / Governments auditors.
19. Right and duties of the auditors.
20. Liquidations of the Bank.
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The Bank of Punjab
Being a commercial Bank, The Bank of Punjab performs all such functions as are
attributed to commercial banking institution both in the area of resource mobilization,
loans, and investment. The Bank is thus providing all type of advances to business, trade,
and industry on seasonal and annual basis, and is ensuring, through the prudent policy,
the safety and protection of its loan portfolios, as the resources base of the bank expands,
project financing will also be brought into its fold.
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The Bank of Punjab
Emblem.
The sun rising over the five wavy lines symbolizes the dawn of new era of progress and
prosperity for the land of five rivers and hence for Pakistan. Furthermore the main
objectives of the inclusion of cotton flowers and the spikes of wheat in the emblem is
firstly to represent the fact that the economy of the Punjab stands on its agriculture
produces especially cotton and wheat and secondly to highlight the emphasis which the
bank is to place on development of agro-based industry.
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The Bank of Punjab
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.
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The Bank of Punjab
VISION STATEMENT
MISSION STATEMENT
CORE VALUES
operate
Recognition and Reward For the talented and high performing employees
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The Bank of Punjab
Branch
Manager
Operational
Manager
Short-term Import
loans
Mortgage Export
Loans
Internship Report 15
The Bank of Punjab
BOP Management
Sr. No Designation Name
President Secretrait
1 President Mr. Naeemuddin Khan
2 Deputy CEO Mr. Khalid Siddiq Tirmizey
Audit & Risk Asset Review
1 Group Head Audit & Risk Asset Review Mr. Ijaz ur Rehman Qureshi
2 Head Operational Audit Mr. Abdul Rehman
3 Head Risk Asset Review & BASEL Audit Mr. Shahzad Ahmad Cheema
Commercial Banking
1 Head Commercial Banking Mr. Liaquat Ali
Credit Administration
1 Head Credit Administration Division Mian Muhammad Sharif
Deputy Head Credit Administration
2 Mr. Shahnawaz Saeed Khan
Division
Compliance & Internal Control
1 Head Compliance & Internal Control Mr. Irfanuddin
2 Mr. Hafeez ud Din
Corporate & Investment Banking
Head Corporate & Investment Banking
1 Mr. Khalid Qaiyum
Group-I & Group-II
Consumer & Agriculture Credit
1 Group Head Agriculture Credit Mr. S.M. Atif
2 Head Consumer Banking Division Mr. Ahmed Razi Ghazali
Finance
1 Chief Financial Officer Mr. Nadeem Amir
2 Deputy Head Finance Mr. Muhammad Iqbal Shahzad
Human Resource
1 Group Head Human Resources Mr. Moghis Bokhari
2 Deputy Head Human Resources Mr. Naveed Hafeez Shaikh
Head / Principal Officer's Training
3 Syed Zaki Ahmad
Institute
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The Bank of Punjab
Category A:
President
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)
Category B:
Officer Grade I
Officer Grade II
Officer Grade III
Cash Officer
Category C:
Clerical Staff
Category D:
Non-Clerical Staff
Driver
Guards
Gate Keepers
Tea Boy
Internship Report 17
The Bank of Punjab
Organizational Sttructure
DIVISION DEPARTMENTS
INTERNATIONAL SHARES
FINANCE LAW
RECOVERY STATIONERY
TREASURY PUBLICATION
REGIONAL CHIEFS
Branc Network
Total (273)
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The Bank of Punjab
Internship Report 20
The Bank of Punjab
G.M
Institute
includes:
Recruitment
Staff remuneration
Transportation
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The Bank of Punjab
G.M
Computer Dept:
Stationary Dept:
Maintenance Dept:
O & M Department
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The Bank of Punjab
G.M
Marketing PRP
Cell Department
It is the other name of the marketing division. It promotes the bank
cause i.e. deposits and work for the over all development of the bank.
Deposits are the lifeblood of any bank. Without deposits bank cannot
perform any function of banking. This division fixes the deposits target of
every branch by keeping and eye over the potential customers in the area.
It gives motivation to branches to achieve their targets through
different campaigns and schemes like cash prizes and special increments. It
publishes a bulletin in which those branches are encouraged who achieves
their monthly targets. The main function is to develop and attract the
customers and depositors. It also manages:
Advertising policy
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The Bank of Punjab
Sales promotion.
G.M
Agriculture Credit
Wing
This division control over all credit operations like sanction of loans, Inland Bill Purchased (IBP)
and also keeps check over securities mortgage, hypothecating or pledge. It also fix the rate of
Branches send the credit proposal to head office credit division. Credit
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The Bank of Punjab
G.M
International wing
Forex Money
Market
Investment
Engg &
Maintenance
basis and this helps to deal with the clients having import export
business.
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The Bank of Punjab
The Marketing and Spot Inspection cell, which were introduced by the
G.M
Balance Sheet
Results Monitoring
SBP affairs and
Compliance
Shares Dept.
Company Affairs
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The Bank of Punjab
employees.
G.M
Law
Department
The recovery division, which was established in 1994 to assist in regularizing the difficult
loan accounts, has rendered valuable services in this respect. To effect recoveries in an efficient
manner, a policy has been framed in accordance with the guidelines issued by the State Bank of
Pakistan Moreover, recovery cells at regional levels have been set up to assist the head office.
This division looks after the matters of recovery of loans with the assistance of legal advisors.
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The Bank of Punjab
G.M
Audit of Rectification
and
Branches
Persuasion
This department ensures appropriate system of checks and balances. It checks all the
irregularities, errors and forgeries if any, under the rules and regulations formed by the
Government of Punjab. For this purpose it doesn’t only keep and eye on the branches in their
vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has
improved working at the branch level. It not only points out the discrepancies but also tries to
solve it. Surprise audit maintain a good check on the over all working of the branch especially of
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The Bank of Punjab
DEPOSIT DEPARTMENT
In modern times very few business enterprises are carried out solely with the
capital of the owners. Borrowing funds from different sources has becomes an essential
feature of today business enterprise. But in the case of a entire banking system is based
on it. The borrowed capital of the bank is much greater then their own capital. Banks
borrowing is mostly in the form of deposits.
These deposits are lent out to different parties. The larger the difference between
the rate at which the deposits are borrowed and the rate at which they is lent out the
greater of the profit margin of the bank. Furthermore, the larger the deposit the larger will
be the funds available for employment; larger the funds lent out the greater will be the
profit of the bank.
To receive the deposit is the basic function of all commercial banks. The bank
does not receive these deposits for save keeping purpose only, but they accept deposits as
debts. When banks receive deposit from a customer, the relationship of a debtor and
creditor is established where by the customer become the creditor and the bank a debtor.
When the bank receives amount of deposit as a debtor, it becomes the owner of it. It may,
therefore use it as deems appropriate. But there is an implicit agreement that the amount
owned would be paid back by the bank to the depositor after a specified period.
NATURE OF DEPOSIT
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The Bank of Punjab
Saving Deposit
Short Notice Term Deposit
Call Deposits
Fixed or Term Deposits
CURRENT DEPOSIT
Current deposit are those which are payable to bank whenever demand by the
customer. Bank doesn’t pay any profit on current deposits. There are of different scheme
of saving deposits, which are classified under different duration purpose and rate of
interest. Fixed deposits are those which are by the bank under the conditions that will not
be payable on demand but will be payable under fixed or determinate future time date.
SAVING DEPOSIT
This type of accounts is one step towards the Islamization of banking system in
Pakistan. There are two types of PLS Accounts.
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The Bank of Punjab
This kind of deposit is for a short period. The depositor may withdraw his deposit
at any time by giving seven days notice to the bank. This type of deposit facilitates the
depositor to withdrawn his amount with interest of the deposited period.
CALL DEPOSIT
Call deposits are the sorts of deposits, which are deposited with the banker against
any tender. This is without interest deposit. This may be with interest provided the
depositor has agreed to keep this amount with the bank for some fixed period.
Account opening is the first step towards establishing a relationship between the
customer and the bank. The Bank of Punjab is offering basically two types of account:
Current Deposit Account
Profit and Loss Sharing Account
The necessary condition for a customer, who wants to open an account with the bank, is
introduction, which is preferably by the bank officers or any account holder of the bank.
The different categories of accounts that are available are as under.
Individual Account
Joint Account
Partnership Account
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The Bank of Punjab
The general banking department performs various functions among them the first
and most important function is Account Opening. The bank reserves the right to open
any account, which in its opinion is suitable as a customer. The process of
opening an account is very simple and any body that would like to open his account could
do it easily without any difficulty.
The person would like to open his account is required to meet with the manager or
second officer, who will give him an Application form specifically used for account
opening. Along with the form a card for specimen signature is also supplied to the
customer. Manager has every right not to accept this contract if he is not satisfied with
the details provided by the customer. But in case the contract is acceptable to both, the
next step is official account opening.
This begins with the Account Opening Register which can be thought as a
customer’s master file. The manager records the necessary details into this register5 and
allots an “Account Number” from this account opening register. This register is
maintained for each type of accounts and the account numbers are allotted serially. After
opening the account every applicant’s date is entered in the computer to maintain the safe
record and application form is also safely put off, so that it can be available whenever it is
needed. Checking officer is responsible to tally the manual data with computerized
account opening file. For fix deposit only the application form is needed, which is
prepared manually, because most of the procedures of fix deposit is done manually.
Signature specimen card contains three signatures of the applicant, applicant account
number, account type, branch code, and title of account. It will be attached with the
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The Bank of Punjab
account opening form. Banker uses this card when he receives the cheque, he compares
signature on the cheque with the Specimen card, for avoiding the frauds.
CLEARING DEPARTMENT
This department receives the cheque and other negotiable instruments drawn on
local branches of other banks. State bank of Pakistan has clearing house, in which
cheque, and other negotiable instruments are brought by each local bank representatives
and the mutual claims of each bank on other and offset and a settlement is made by the
payment of difference. Clearing system is help full for both the customer and saving
currency, time and labor.
Cheques
Demand Drafts
Telegraphic transfers
Mail Transfers
Pay Order
Dividend Warrants
CLEARING
Any instruments which drawn on BOP branches and other banks in same city that’s
instruments are called clearing. A clearing and date stamp is a fixed on these instruments
these are two types of clearing!
Outward Clearing
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The Bank of Punjab
Inward Clearing
Inward clearing means the cheque drawn on BOP and outward clearing means the
Cheques drawn on others
OUTWARD CLEARING
INWARD CLEARING
On receiving cheque/instruments from central clearing branch, the in charge
checks the number and amount of cheque received in clearing must tally with the main
schedule received from central clearing branch.
These cheque/instrument are entered in “INWARD CLEARING REGISTER” for the
cheque/instrument passed in clearing is a credit advice for the aggregate amount of
cheque passed in clearing is prepared, drawn on central clearing branch.
Deposit held by bank at SBP serves as check clearing and collection balances.
Rather than physically transferring funds between banks, check clearing and collection
can be done by simply debiting or crediting a bank’s account at SBP.
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The Bank of Punjab
REMITTANCE DEPARTMENT
Remittance is a major function of the bank. It is the transfer of money from one
place to another place. The need for remittance is commonly felt in commercial life
particularly and in everyday life generally.
By proving this service to the customers the Bank of Punjab earns a lot of income in the
form of service charges.
TYPES OF REMITTANCE
PROCEDURE
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The Bank of Punjab
2) A credit voucher is filled in order to get the excise duty and exchange commission.
3) The sender deposits the total amount of the two vouchers i.e. the debit and credit
vouchers.
4) Then the cashier sends the cash receipt voucher to the accounts department and the
account records the amount paid in his cash scroll.
5) Accountant gives the DD leaf along with the DD voucher to his assistant who
records the sender’s name, amount and receiver’s name. After writing all the
information in the DD register he gives it to the officer along with the DD for
authentication.
6) After authentication the DD is handed over to the sender and bank sends the advice
to the concerned branch. So when the party presents the DD in the concerned
branch its payment could be made.
PARTIES INVOLVED
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The Bank of Punjab
The person who is entitled to receive the amount after presenting the demand draft in
the drawer branch.
MAIL TRANSFER
It is the transfer of money from one branch to another branch of the same bank
through mail service. In mail transfer there is no need of advice as the amount is directly
credited to the receiver’s account.
PROCEDURE
1) First a voucher is filled in whish the sender writes the amount to be sent, name,
account number of the receiving person with the branch name and date.
2) A credit voucher is filled in order to deduct exchange, postage charges according to
the amount of the mail transfer.
3) The sender deposits the total amount in the cash department.
4) The cash officer gives the vouchers to the officer after affixing received cash stamp
and writing the amount in red ink.
5) Then the officer writes the amount paid in the cash scroll and gives the MT to his
assistant.
6) MT leaf is filled according to the information provided in credit voucher. He also
writes the same information in the MT register. Then he gives the MT leaf and MT
register to the officer for authentication.
TELEGRAPHIC TRANSFER
This is the most urgent method of remitting the money from one place to another
place. This method is used when the sender desires to send urgently, in this case the
sender request the manager of the branch to issue TT.
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The Bank of Punjab
PROCEDURE
For sending the TT the manager and officer apply a test. In the test the manager
and officer uses a coding technique. They write their own code numbers, which is
allotted, to them as the bank branch code. After making all the conformation the
concerned branch makes the payment to the receiver. If the sender wants to convey the
same message through telephone then he has to pay the charges of
telephone along with the TT charges. First the person deposit the TT amount along with
the charges through the credit voucher then his TT sent to the relevant branch.
PAY ORDER
A pay order is a written order issued by the bank on its own branch, drawn upon
and payable by itself to pay a specified sum of money to the person. The purpose of a pay
order is to transfer the fund from one place to another. It is usually
not issued in favor of the parties of other cities. Usually the pay order is issued for the
local transfer of money from one person to another or from the person to any other
department. It is used for different purposes. The purpose may be the repairs of the
branch or renovation of the branch.
PROCEDURE
The procedure of a pay order varies with the nature of the purpose. If the work is
of huge amount then first the manager writes a letter to the Zonal Chief in order to get
sanction of the work. Then the advertisement of the work is given in the newspaper in
order to invite the contractors. But if the work is small then the branch manager has
discretionary power to select the party whose rate is lowest. After finishing the work the
contractor submits the bill of work on his stamp pad. Then the bank issues a pay order,
against the pay order the contactor gets the amount from the issuing branch.
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The Bank of Punjab
.ACCOUNT DEPARTMENT
Account department is the backbone of a bank. It plays a vital in performing
different functions of a bank. The account department of is computerized as well as
manual. Accounting books of different departments are maintained under this department
and with the help of these, accountant prepare the monthly quarterly, semiannually and
yearly financial statement and order statement of the whole bank. All the transaction
taking place is recorded daily in the books of accounts and in computerized ledgers.
For every transaction there is Voucher prepared and through these vouchers
contra entries are passed under different head. Good working of accounts mainly depends
on the voucher system. Accounts department is responsible for proper handling and
maintenance of vouchers of different department
.
MANUAL FUNCTIONS OF ACCOUNTS DEPARTMENT
Accountant prepares vouchers for all daily activities of different departments. Checking
officer checks and tallies these vouchers with their daily transactions and posts their
entries under proper heads.
TYPES OF VOUCHERS
Debit Voucher
Credit Voucher
These two types of vouchers are again classified under following types: -
Cash voucher
Transfer voucher
Clearing voucher
All the daily transaction in cash, transfer and clearing is done through these vouchers.
A sheet is prepared on which all the vouchers passed during one day are consolidated and
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The Bank of Punjab
summarized. This sheet is called supplementary sheet. There are two types of
supplementary sheet.
Daily paid voucher sheet
Daily receipt voucher sheet
Paid sheet is used for all debit vouchers and receipt sheet is used for all credit vouchers.
CASH BOOK
Cash book is prepared daily to keep the record of daily paid vouchers. Cash book
contains the opening balance and the closing balance of a working day. Before writing
and balance the cash book firstly there is needed to properly arrange all the vouchers of
that day.
One of the functions of accounts department is to maintain and update the term
deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated after
every month for estimating profit on customer’s accounts. Accountant prepares different
ledger for all schemes of term deposit. With the help of TDR ledger accountant prepares
“provisional ledger”. From this ledger accountant calculate the monthly product of each
account and estimate the profit for a half-year. The semiannual profit on each account
will be the expenses of branch.
Most of the daily working is done through ledgers. In BOP all the daily
transaction in deposit, cash, clearing, transfer, remittance and advance are performed
these daily ledgers; accounts department receives the following output of general ledger.
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The Bank of Punjab
The formats of all these ledgers are same. They contain the following head
account no. description, previous balance. Codes are assigned to all these items.
Income will be credited in the branch account and expenses will be debited I the branch
at the month end.
All the expenses of circle, regional, audit, inspection office is debited in the head
office account, because it is the responsibility of the head office to bear the expenses of
its offices. For all the heads of general ledger there is closing balance and opening
balance.
These ledgers are helpful in preparing the daily, monthly, semiannually and
yearly statements. Some of these statements are prepare for the
purpose of record keeping of branches and some are prepared to send to the circle office,
head office and state bank of Pakistan.
Some of these statements are
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The Bank of Punjab
Statement of affairs
BILLS DEPARTMENT
This department deals in bills for collection for all kinks such as cheque, draft, and
pay orders, call deposits etc. with outstation branches of BOP or with other banks. It
provides service to their customer to get payment from the nearer bank at nominal
charges.
Bills department receive cheque or other of bills from its kinks client whose account
must be opened in that branch. The branch forwards the check with schedule or covering
letter to that branch on which bills is drawn. The checking officer of bills department will
cross the cheque with special bank stamp before forwarding the cheque.
OBC register is also maintained for proper record keeping of outward bills. This
register is updated two times once at the time of receiving bill from clients and the other
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The Bank of Punjab
when the confirmation advice of this cheque is received from the payable branch. Bank
gets a commission Rs. 25/- and courier charges Rs. 40/- on the service.
The branches which receive bill have to verify these bills for payment. The party
account must be opened in that branch. The responsibility of this branch is to verify the
bills for collection with in three days and send the advice to the originating branch.
In case of verification of bills is approved, banks debit the account of the respective
account holder and send a debit advice to the originating branch and at the same time
credit the head office account for inward bills IBC register is maintaining for keeping the
proper record of the bills.
Originating branch receives the documentary bills from their clients and sent them
to out station branches of the same bank or other bank. Customer account must be opened
in that branch. The documentary bills are i.e. trust receipt, railway receipt, sales invoice,
receipts of courier service etc. bank gets as commission 0.35% plus postage charges plus
courier service charges of this service. Seller and producer both can avail the facility of
bank in case of selling and purchasing their product or goods.
Bank receives the documentary bills from the other outstation branches of the same
banks or other banks for collection the amount from purchaser.
In this case back acts as a buyer’s bank, when bank receives the documentary bills they
send intimation to buyer about his arrival of goods. If the buyer is the account holder then
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The Bank of Punjab
bank will debit his account otherwise purchaser deposits the amount of the bills. Bank
hand over these documents to purchase, on behalf of which buyer receives the goods.
Bank also charges commission
ADVANCES/CREDIT DEPARTMENT
It is the loan function, which produces the major person of bank’s income, and as
such it is the major areas of professional banker’s concern and attention.
FORMS OF LENDING
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The Bank of Punjab
RUNNING FINANCE
DEMAND FINANCE
This is common form of financing to commercial and industrial concerns and is
mad available either against pledge or hypothecation of goods produce or merchandise.
In Demand Finance the party is financed up to a certain limit either at
once or as and when required. The party due to facility of paying mark-up only on the
amount it actually utilizes prefers this form of financing
.
Ordinary Shares
Preferred Shares
It can be
Quoted or Unquoted
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The Bank of Punjab
Registered
Bearer
Inscribed
Pledge
Hypothecation
Guarantee
Indemnity
Charge
Pledges:
“The bailment of goods as security for the payment of the debt and
Pledge is the characteristic mode of taking goods as the security and the
pledge occurs when the goods or document of the title thereto or the
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The Bank of Punjab
In a pledge, the ownership remains with the pledger but the pledgee
has the exclusive possession of the property until the advances in repaid in
full, while in case of default the pledgee has the power of sale after giving
due notice.
People with the safe custody of goods, when entrusted with the goods for the
Hypothecation:
“A legal transaction where by goods may be made available as the security
for a debt without transferring either the property or the possession to the
ledger.”
from the bank but the ownership and the possession is left with the
borrower, the
neither the property in the goods nor the possession of them passes to the
Guarantees:
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The Bank of Punjab
tangible security, the banker may rely on the personal guarantees to protect
person called the guarantor or security to another for answering the present
Indemnity:
“A contract by which one party promises to save the other from loss
caused to him by the conduct of the promisor himself or by any other person
liable to the promise if the latter suffers a loss on account of his doing
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The Bank of Punjab
Charges:
operation of law, made security for payment of money to another, and the
transaction does not amount to mortgage, the latter person is said to have the
charge on the property, and all the provisions herein before contained which
The charge can be created by the act of parties or by the operation of the law
and although the property is made a security the payment of loan, is still not
he mortgage.
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The Bank of Punjab
Preference Shares
Ordinary Shares
Preferred Shares
It can be
Quoted or Unquoted
Registered
Bearer
Inscribed
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The Bank of Punjab
A mortgage is the transfer of and interest in specific immovable property for the
purpose of securing the payment of the money, advanced or to be advanced. By way of
loan, and existing debts or the performances of the engagement this may rise the
pecuniary liability.
The transfer is called the ‘mortgager’ and the transferee the ‘mortgagee’ the principal
money and interest of which payment is secured for the time being and instrument by
which the transfer is effected, is called the letter of the mortgage deed.
Availability of adequate flows of credit for industry and agriculture are a sine qua non for
the growth and development of an economy. This acquires added importance when
agriculture is the mainstay of the economy as also the sector where the bulk of the poor
are concentrated. Growth and productivity in Pakistan's agriculture has slowed down in
recent years and is, therefore, of serious concern given its importance for the economic
prosperity of the country. Apart from various other weaknesses in
the infrastructural support of the agricultural sector, inadequacy and lack of efficacy of
credit, flows to support agriculture related activities has been a major constraining factor.
Agriculture is the largest sector of the economy. It contributes 25 percent to GDP,
provides raw materials to 80 percent of industry and employment to over 50 percent of
the population. This is a sector that has the shortest gestation period for
investments and, therefore, a remarkable capacity to bring about a turn around in the
economy. This important sector in Pakistan is suffering from a number of maladies and is
consequently witnessing stagnation in productivity.
Due to policy and administrative exigencies, the savings in the agriculture sector remain
low and, therefore, the sector has perpetually remained capital starved. The pricing of
input and output in agriculture over the years has forced the majority of farmers in
Pakistan to plough back their incomes into agriculture and non-institutional credit, and
has more often than not served to sap their potential earnings. Needless to say, that
shortage of savings and lack of availability of capital is one of the major reasons for
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The Bank of Punjab
poverty in the country. The agricultural and rural sectors in Pakistan in general and in
Punjab in particular are, therefore, suffering from severe under-development. Under a
desirable development model, Punjab can:
Control massive migration to the urban centers that in turn is causing a number of
social, administrative (i.e. law and order) and economic problems for the urban areas
Elevate poverty and improve the income generating capacity of the agri-based
population.
AGRICULTURE SCHEME
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The Bank of Punjab
SERVICES
Commercial Banking
Corporate & Investment
Cash Management Services
Utility Bills
Lockers
COMMERCIAL BANKING
The Commercial Banking Group has been formed to cater the needs of small & medium
size customers for increasing Bank’s business significantly with clear focus,
repositioning of resources and active marketing to improve Bank’s profitability.
Commercial Banking will deal with customers having sales turnover and aggregate credit
exposure as per benchmarks prescribed in the SBP’s Prudential Regulations.
This Group’s emphasis will be to meet necessary business needs of customers which are
numerous as compared to CIB clients but their individual credit requirements are
relatively much smaller. In view of this peculiar nature of this business segment that
involves a higher turn over a much wider network is needed. The SME will concentrate
on rebuilding its set up which suits to its peculiar needs on all locations.
Corporate 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
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The Bank of Punjab
Multi National Companies. BOP facilitates its customers for all sorts of their banking
needs including working capital, trade finance, BMR and project financing etc. BOP has
worked on some of the local markets’ largest and most complex transactions and
infrastructure projects.
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,
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The Bank of Punjab
UTILITY SERVICE
Customers can pay their utility bills e.g. electricity, water gas, telephone, mobile, at any
of our 272 branches across Pakistan. For your convenience bills are collected on all
working days from 9:00 am to 5:00 pm (Monday to Friday) except lunch & prayer breaks
and from 9:00 am to 1:30 pm on Saturday.
You can also pay your bills by availing our drop box facility. Just drop your Cheque
along with bill at your branch and collect the receipt in the evening, avoid the hastle of
standing in queues and save your precious time
BOP LOCKER
Discover peace of mind, enjoy personalized service and operate your locker in a friendly
and pleasant environment at The Bank of Punjab.
Small Rs.1,200
Medium Rs.1,800
Large Rs.3,000
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The Bank of Punjab
ATM Facility
On-Line Banking
Lockers Facility
Demand Drafts
Letter of Credit
Pay Order
Mail Transfer
Debit Card
Collection of Utility
Through the ATM’s Customers have access to the various services such as
withdrawal, balance enquiry and mini statement? Complete security is ensured because
access to the account is only possible by entering a four digit personal identification
number (PIN) known only to the account holder. Cash withdrawal limit is up to Rs.20,
000 per day. Annual charges of ATM is Rs.250/- per card.
ONLINE BANKING
LOCKERS
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The Bank of Punjab
It is one of the utility services that BOP provides to their customers for keeping
jewellery, important documents and other valuables.
DEMAND DRAFT
BOP provides safe, speedy and reliable way to transfer money at vary reasonable
rates. Any person whether an account holder of the bank or not, can purchase a Demand
Draft from a bank branch.
LETTER OF CREDIT
BOP is offering its business customers the widest range of option in the area of
money transfer. BOP’s letter of credit service is with competitive rates, security, and ease
of transaction, BOP Letter of credit is the best way to do the business transactions.
PAY ORDER
BOP provides transfer of money using different facilities. Its pay orders are a
secure and easy way to move the money from one place to another. The charges for this
service are extremely competitive.
MAIL TRANSFER
Moves money safely and quickly from BOP Mail Transfer service. The rates for
this service is quiet impressive as compare to the market.
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DEBIT CARD
1. The front of the card will have the following matter on it:
Card Holder’s Name
International Bin Number (6 Digits - XXXXXX)
Magnetic Strip
Signature Panel
Conditions of Usage
M-Net and M-Net logo
LIMITATIONS
Any non-personal account i.e. Companies, Organizations, Trust Account,
Government account and Collection account etc.
Dormant, inoperative, blocked or restricted accounts.
Accounts with “NIL” balance.
Term Deposit Accounts.
NIDF Accounts. (Non Interest Demand Finance Accounts)
Accounts requiring thumb / photo for operation (illiterate accounts) · ATM/Debit
cards can only be issued on local currency accounts.
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MARKETING MIX
“The set of marketing tools that the firm uses to pursue its marketing objectives in
the target market”.
PRODUCTS / SERVICES
Due to trend setting and innovative banking, Punjab Bank presents a range of quality
products with revolutionary perks and convenience. BOP provides a wide range of
products/ services to its customers, which can be compared with any foreign, or national
bank in terms of quality and reliability.
Here is an overview of different products and services formulated by Punjab Bank.
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House Loan
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The Bank of Punjab
Purchase of house/flat
Purchase of Plot & Construction thereon
Construction of house on self owned plot
Renovation/home improvement
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The Bank of Punjab
E-CIB Charges
= Rs.300/- per case
Documentation Charges
= Actual
Legal Fee
= Actual
Valuation
= Actual
Mortgage Charges/Fee
= Actual
Pre-Payment
NO Prepayment Penalty
Penalty
Late Payment Cheque returned/ Over 20 Days Past
Penalty Principal Instalment delayed upto Due on principal
Amount 20 days per amount on daily
cheque/instalment product basis
Additional mark-
Upto Rs
Rs.500/- up @ 1% +
2.50 (M)
Rs.500/-
Upto Additional mark-
Rs.5.00 Rs.1,000/- up @ 1% +
(M) Rs,1,000/
Additional mark-
Over Rs
Rs.1,500/- up @ 1% +
5.00 (M)
Rs.1,500/
Insurance Property insurance (if loan amount exceeds value of end) and life
insurance of borrower for loan amount will be mandatory
Eligibility
Criteria ELIGIBILITY CRITERIA FOR SALARIED
INDIVIDUALS (SI)
Age between 25 and 60 Years or retirement date; whichever is
earlier (60 Years at maturity of facility)
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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
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The Bank of Punjab
CNIC
Two Recent Photographs
Bank Statement for last 01 Year of Business Accounts
Latest Copy of utility bills (Electricity & phone) of Residence
Income Tax Return/Wealth Statement OR Non-Tax Payees Form,
if applicant is a non-tax payer
Copy of Rent agreement if living in rented house
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Car Loan
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Finance
Minimum: Rs. 200,000/- Maximum: 5,000,000/-
Amount
Tenure Minimum: 01 Year Maximum: 05 Years
Mark up Rate Tenure Mark-up Rate
Avg. 1 Year ask side KIBOR + 400 bps with
1 year
floor of 17% p.a.
Avg. 2 Years ask side KIBOR + 400 bps
2 Years
with floor of 17% p.a.
3&5 Avg. 3 Years ask side KIBOR + 400 bps
Years with floor of 17% p.a.
Minimum Govt. / BOP Employees Pvt. Employees SEP/SEB
Equity 10% 15% 20%
Down Equity + Processing Charges + First Year Insurance + First Monthly
Payment Instalment
Charges Processing Charges
Details = Rs. 5,000/-
E-CIB Charges
= Rs.300/- per case
Documentation Charges
= Actual
Insurance Rate
= 4% from Insurance company on bank’ panel
Registration Charges
= Actual. Payable directly by the customer
Pre-Payment Pre-payment penalty @5% on principal outstanding .However, If the
Penalty customer repays in order to obtain finance for new vehicle no penalty may
be charged.
Debt Burden The monthly payments of all loans/lease/limits from all FIs/banks should
not exceed 50% of Take Home Salary / Net Income.
Late Payment 5% on the amount of instalment Maximum Rs. 1000/- + Cheque
Penalty Dishonouring Charges (as per schedule of charges of the bank)
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Eligibility
Criteria ELIGIBILITY CRITERIA FOR GOVT. EMPLOYEES &
BOP EMPLOYEES
Age between 25 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
Minimum Take Home Salary is Rs. 10,000/-
Permanent Govt. Employee with Minimum 03 Years of job
Experience. (01 Year for BOP Employees).
Contractual Employees are also eligible but loan should be
adjusted before 06-months of the expiry of contract. Moreover,
departmental undertaking / one Personal Guarantee of Govt.
Employee of grade 17 & above shall be obtained for contractual
employees (Financial commitment of Guarantor should be
established through E-CIB report & Salary Slip/Employer
Certificate/Bank Statement of salary account showing monthly
credits of salary amount).
Maintaining Salary Account in any bank.
Have valid Driving License & CNIC
Residing or working in launching cities.
Documents
Required FOR SALARIED PERSON
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Security Car will be registered in the name of Bank as per lease agreement.
Comprehensive Insurance Policy (Insurance Certificate/policy will
be sent directly to the branch by the Insurance Company).
Post Dated Cheques as per the repayment schedule.
Three (03) undated cheques of marked up amount (Principal +
Mark-up) Any additional guarantee, if required as per the contents
of the approval letter
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Asaish Loan
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Brands/ All renowned brands including PEL, LG, Sony, Samsung etc. for all
Products products like Refrigerator, TV, Microwave Oven, AC, Washing machine
etc.
Down
0%
Payment
Tenure / Loan Mark-up Rate
Amount / Tenure
(Reducing BOPance method)
Mark-up Rate 6 months 0%
9 Months 8% p.a
12 Months 11%p.a.
18 Months 15%p.a.
24 Months 18%p.a.
Charges Processing Charges
Details = Rs. 500/- per case
E-CIB Charges
= Rs.125/- per case Upto Rs. 100,000/-
Rs.200/- per case over Rs. 100,000/-
Documentation Charges
= Actual
Debt Burden The monthly payments of all loans/lease/limits from all FIs/banks should
not exceed 50% of Take Home Salary / Net Income.
Pre-Payment
No Penalty
Penalty
Late Payment 3% on the amount of instalment per day for the days the amount remains
Penalty overdue Max. Rs. 500/- + Cheque Dishonouring Charges (as per schedule
of charges of the bank)
Eligibility
Criteria Eligibility Criteria for Govt. /Armed Forces/BOP
Employees
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/-
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Documents
Required For Govt. /Armed Forces/BOP Employees
Copy of valid CNIC
Latest Salary Slip (Employer Certificate, if salary slip is not
provided by employer)
Employer Certificate on organization’s letter head (as per BOP
specimen) –
Bank Statement for last 06 months (where salary is being
transferred).
Latest Copy of utility bills (Electricity & phone) (of present living
address).
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The Bank of Punjab
Magnetic Strip
Signature Panel
Conditions of Usage
M-Net and M-Net logo
1. Service
The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants across the
country. The following services can be utilized at the Point of Sale (POS) terminals:
1.1.Purchasing
Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is
displayed. This is a service which lets you pay directly from your account without using cash.
When a payment is made through the debit card, your account is directly debited.
1.2.BOPance Enquiry
The Point of Sale (POS) terminal also lets you view your BOPance of all the linked accounts to
your card.
2. Sites
BOP Debit Card Holders can transact at any of M Net merchant locations country wide. These
POS terminals are available at Shopping Malls to Petrol Stations. The list of country-wide
merchants is attached as Annexure I. All merchants who display the M-Net logo will accept the
BOP Debit Card.
All new plastic that will be ordered from now on will bear the M-Net logo. The existing plastic will
be used for customers who want the debit card facility, as the cost of the wastage of scrapping
our existing stock is too high. Merchants will have to be informed to accept all BOP plastic,
irrespective of M-Net logo. New order of plastic will bear M-Net logo.
4. Customer Eligibility
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The Bank of Punjab
The ATM Card will be issued to Savings and Current Account holders who maintain their
accounts with the bank and in terms of the account opening documentation are authorized to
operate the account singly or jointly.
For Joint Accounts, which are operated on the signature of any one of the account holders, ATM /
Debit card can be issued. The joint accountholders will be jointly & severally liable for any
transactions processed by the use of the cards and the terms and conditions as laid down shall
be jointly & severally binding on all account holders.
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E-CIB Charges
= Rs.125/- per case Upto Rs. 100,000/-
Rs.200/- per case over Rs. 100,000/-
Documentation Charges
= Actual
Debt Burden The monthly payments of all loans/lease/limits from all FIs/banks should
not exceed 50% of Take Home Salary / Net Income.
Repayment In 12 - 60 Equal Monthly instalments.
Late Payment 3% on the amount of instalment per day for the days the amount remains
Penalty overdue Max. Rs. 500/- + Cheque Dishonouring Charges (as per schedule
of charges of the bank)
Eligibility
Criteria ELIGIBILITY CRITERIA FOR GOVT. /ARMED
FORCES/BOP EMPLOYEES
Age between 25 and 59 Years or retirement date; whichever is
earlier (59 Years at maturity of facility)
Minimum Take Home Salary is Rs. 10,000/- The condition may
be relaxed to Rs.5,500/- subject to fulfilment of following
conditions; a. Maintaining Salary Account with BOP from last six
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The Bank of Punjab
Documents
Required FOR GOVT. /ARMED FORCES/BOP EMPLOYEES
Copy of valid CNIC
Latest Salary Slip (Employer Certificate, if salary slip is not
provided by employer)
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Any additional guarantee, if required as per the contents of the approval letter.
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The Bank of Punjab
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
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
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
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The Bank of Punjab
Margin on Security:
50% margin on landed property (Agri/Urban). 25% margin in case of liquid security
Insurance:
The Lessee will arrange comprehensive insurance of Animals. In case of Poultry and Fish
farming Borrower will have to arrange comprehensive insurance of poultry and fish stock himself
form Bank's approved A rated company life assurance of lessee under the Bank's charge.
Mark-up:
Period:
5 Years
Repayment:
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The Bank of Punjab
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:
Security:
1. Lease Assets i.e. Engine, Tube well and other related implements (The vendor will issue
receipt in the name of Bank).
50% Margin on Agri land assessed by Surveyor. 25% margin Agri land as per value in revenue
record. The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land
(Oast Bai is verified by Revenue Officer)
Insurance:
Mark-up:
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The Bank of Punjab
At present, the agriculture business is the most rewarding avenue of the Bank of Punjab. Due to
the increasing demand of off seasoned vegetables, we are rolling out a special scheme by the
name of “GREEN HOUSE FINANCE FACILITY” for farmers who intend to establish Green House
to grow off seasoned vegetables.
Purpose
The purpose of this loan is to encourage the farmers to establish green houses. This will also
curtail the shortage of vegetables. Moreover the rate of vegetables will also decrease when they
are in abundance in the markets.
There are two types of green houses i-e Metallic Construction & Bamboo Construction
Eligibility
The applicant should be a genuine grower and should have a suitable land to establish a Green
house. The applicant should not be a defaulter of any other Bank and the land under cultivation
should be free from any encumbrance.
For Metallic Tunnels: For purchase of iron/steel, cement, concrete, polythene, mulching shopper,
green net For Bamboo Tunnels:
For purchase of bamboo, cement, concrete, polythene, mulching shopper, green net
For installation of Drip Irrigation System for both Metallic & Bamboo Tunnels:
Running finance facility for the purpose of purchasing seed/inputs and other running expenses
such as farm power, labor etc.
Disbursement:
In case of Medium Term Demand Finance Facility the loan will be disbursed as 30% for base
structure & for purchase of raw material, 40% for construction of green house/tunnels and rest of
30% for finishing purpose. Each tranche will be released after proper verification by Executive
Incharge Agriculture & respective ACO of the Branch. In case of Medium Term Lease Finance
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The Bank of Punjab
Facility the payment will be made directly to the vendor after proper verification of leased asset. In
case of Short Term running Finance Facility the initial disbursement will be made as and when
required by the applicant.
Amount
70% of the cost of construction assessed by Bank’s approved surveyor according to the proposed
plan of construction In case of lease finance 80% of the purchase price of leased assets. In case
of Running Finance, up to 80% of total running expenses.
Security
I. PRIMARY ·
Leased assets in case of lease finance facility (receipt will be issued in the name of bank). ·
Hypothecation of vegetables, equipment etc. in case of running finances facility.
II COLLATERAL
Charge on agriculture land through Agri. Pass book. OR · Charge on urban immovable property
through equitable/registered mortgage. the property should be cleared by the banks approved
legal counsel and will assessed by the Banks and PBAs approved surveyor. OR · Liquid security
in the shape of Banks Fixed Deposited Receipt/DSC/NSC or Regular Income Certificates.
III One personal guarantee of a reputable person. ACO along with Regional Chief can waive this
condition if they deem the borrower to be credit worthy.
Margin on Security
The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast
Bai is verified by Revenue Officer)
Maximum Amount of Finance will Be 50% Of The Forced Sale Value, Evaluated By PBA/Bank’s
Approved Surveyor.
Insurance
Mark up
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The Bank of Punjab
Recovery of Mark up
In case of lease finance & Demand Finance the mark up will be recovered along with the
installment on quarterly basis. In case of Running Finance Facility, the mark up will be recovered
on quarterly basis.
Validity
Running Finance to be settled in One Year along with mark up from the date of initial
disbursement of Running Finance. Five years in case of Lease Finance Facility. Five years in
case of Demand Finance Facility.
Repayment
20 equal quarterly installments (Principal and Mark up) in case of Lease/Demand Finance
Facility. Running Finance to be settled once a year along with total mark up.
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PRICE
“The amount of money the customers pay for the product of a company”.
BOP provides different products and services to its customers, that have been discussed
in previous section. Pricing of products means the commission to be paid by the customer
in return of services provided by the bank. The commission paid for the services mainly
includes:
Mark up/ interest
Bank charges
Fees and bank commission etc.
These charges and commissions are prescribed on Schedule of Bank Charges (SOC) that
keeps on changing time-to-time, and issued by the bank periodically (generally after six
months).
There has been a lot of controversy regarding the price of banking companies. Some
scholars argue that the mark up received by the bank is rent for capital that is used by
others. On the contrary, some call it purely Riba. This however is a very controversial
and sensitive issue and I would like not to give any comment on it.
PROMOTION
“All activities that a company undertakes to communicate and promote its products”.
This is an age of competition. Numerous organizations are providing financial services to
the customer. These days every one is facing pressure of competitors. In this world of
growing competition, the only way to survive and grow, for an organization, in the
market place is the proper marketing and promotion of its products. Same is the case with
banking companies. There is large number of foreign and local banks working in the
country and it has been noticed that they are emphasizing much on their marketing
strategies. In this scenario, the key for a bank to succeed and attract its customers is
adequate promotion of its products &services. The bank can attract and retain its
customers through:
The most prominent and important way to attract a large number of customers is the
advertisement of bank and its products/services. Punjab Bankhas adopted different
approaches for the accomplishment of this purpose. For example, formation of Punjab
Bank Lahore branch is a major step taken by BOP. It not only provides a source of
recreation to the people but it serves as a major source of marketing for the bank. Due to
Punjab Banl assistance for the construction of fountain in Liberty Market Square, it is
named as Punjab Bank Square. BOP Square, for being situated in such a business and
commercial area has its unusual importance and has resulted into bank‟s promotion.
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Construction of Gul Barig as main branch Lahore is going to be the revolutionary step for
BOP. It would not serve just as a main branch only, but it would also be a great source of
ever growing marking and promotion of bank.
BOP issued its own rupee travellers cheques with highest denomination during the course
of my internship. I have seen some coloured advertisements of
However, one drawback or shortcoming is that, BOP has formulized a lot of products and
services for its customers, even more than other commercial banks, but any advertisement
on electronic media has not been seen. Since, BOP s major competitor Union Bank
Limited has started large media campaign, so keeping in view these threats, Punjab Bank
should emphasize more on its advertisement.
Along with the advertisement, the bank is providing personal services to its clients with
maximum security as other banks provide. Bank also encourages the public relation
policy of marketing.
Some brochures and promotional material has been printed but it is distributed mainly
through the clients who visit the branch for their day-to-day business or through the
customers who come to get information about new schemes launched by the bank.
PLACEMENT
EVERYTHING WE DO IS FOR YOU 39
“The activities a bank undertakes to make products and services easily available or
accessible to the customers”.
Bank of Punjab objective has been to expand its branch network to meet clients needs.
Bank is well positioned and geographically poised, to cater for increased business
demands, from its existing potential clientele. During last year under review, BOP
opened 8 new branches and presently it has 23 branches, spread all over Punjab covering
major business centers and principle cities. Bank plans to add more branches to his
growing network in the ensuing years.
At present, BOP has opened all its branches at commercial and business areas or near to
commercial areas so that the customers or clients face no problem in reaching the bank.
Head Office of BOP is situated in Lahore. The detail description of its branches is as
follows:
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The Bank of Punjab
STRENGTHS
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The Bank of Punjab
WEAKNESSES
Bank is providing credit facilities only to the urban areas not too much
As Pakistan is agriculture country but no special schemes for the agri- loans.
return on deposits.
Bank gives targets to employees for deposits due to this reason they
pay more attention to fulfil these targets to save their jobs. This distracts their
No job security is there for the employees, and no union exits to secure them.
branch exists outside the Pakistan, while their main competitors have their
Limited locker facility is there, which does not fulfil the requirements of
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OPPORTUNITIES
Bank has a small branch network so The Bank of Punjab can increase its
Bank has no foreign branches so it should open its branches outside the
To increase its advances bank should focus small scale industries and
choose one among them and then a special scheme of lending should be
THREATS
Law and order situation in Pakistan is faulty that is why people are not
The markets rates are now at extremely low levels, with very little chance
of their going up during the rest of the year. The low interest rate means
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In near future the world is going to be free trade zone so the concept of "survival of the
Pakistan the economy is moving very slow. It means less investment and as
Increasing ATM trend among the banks also requires attention of the
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The Bank of Punjab
PEST ANALYSIS
PEST analysis of any industry investigates the important factors that affect the
industry and influence the companies operating in the sector. PEST stands for Political,
Economic, Social and Technological analysis. The PEST Analysis is a tool to analyze the
forces that drive the industry and how those factors can influence the industry.
POLITICAL
ECONOMICAL
SOCIO CULTURAL
TECHNOLOGICAL
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ECONOMICAL
GDP
MONSOON
INFLATION
SAVINGS &
ACCOUNTS
AGRICULTURE
CREDIT
INTEREST RATES
RAISING LIVING
STANDRED
DISPOSABLE
INCOME
POLITICAL SOCIOCULTURAL
GOVERNME CHANGES IN
NT POLICY LIFE STYLE
& BUDGECT LITERACY RATE
BUDJECT DEMOGRAPHIC
MEASURES OF LARGE
MONATORY Organization POPULATION
POLICY SHIFT TOWARDS
FDI LIMIT THE NUCLEAR
FAMILY
TECHNICAL
TECHNOLOGY IN
BANKS
CORE BANKING
SOLUTIONS
ATM
INTERNATE
I.T SERVES AND
MOBILE
BANKING
POLITICAL FACTORS
Government policies affect the banking sector. Sometimes looking into the
political advantage of a particular party, the Government declares some measures to their
benefits like waiver of short-term agricultural loans, to attract the farmer’s votes. By
doing so the profits of the bank get affected. Various banks in the cooperative sector are
open and run by the politicians. They exploit these banks for their benefits. Sometimes
the government appoints various chairmen of the banks. Various policies are framed by
the SBP looking at the present situation of the country for better control over the banks
worth to meet CAR norms. Ceiling for FII investment in companies was also increased
from 24.0 percent to 49.0 percent and have been included within the ambit of FDI
investment
ECONOMIC FACTORS
Banking is as old as authentic history and the modern commercial banking are
traceable to ancient times., banking has existed in one form or the other from time to
time. Every year SBP declares its 6 monthly policy and accordingly the various measures
and rates are implemented which has an impact on the banking sector. Also the Union
budget affects the banking sector to boost the economy by giving certain concessions or
facilities. If in the Budget savings are encouraged, then more deposits will be attracted
towards the banks and in turn they can lend more money to the agricultural sector and
industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then
more FDI are brought in India through banking channels
Socio culture factors also affect the business. They show in which people behave
in country. Socio-cultural factors like taboos, customs, traditions, tastes, preferences,
buying and consumption habit of people, their language, beliefs and values affect the
business. Banking industry is also operates under this social environment and it is also
affect by this factor.
These factor are changing continuously people’s life style, their behavior, consumption
pattern etc. is changing and also creating opportunities and threat for banking industry.
There are some socio-culture factors that affect banking in India have been analyzed
below.
POPULATION
Increase in population is one of the important factor, which affect the private
sector banks. Banks would open their branches after looking into the population
demographics of the area. Percentage of deposit in any branches of banks depends upon
the population demographic of that area. About 70% of population is below 35 years of
age. They are in the prime earning stage and this increase the earning of the banks.
Deposits showed a subdued growth during 2004-05.Income distributions also affects the
operations and overall business of private sector banks.
LITERACY RATE
Literacy rate in Pakistan is very low compared to developed countries. Illiterate
people hesitate to transact with banks. So, this impacts negatively on banks. But there is
positive side of this as well i.e. illiterate people trust more on banks to deposit their
money; they do not have market information. Opportunities in stocks or mutual funds.
So, they look bank as their sole and safe alternative
TECHNOLOGICAL FACTORS
TECHNOLOGY IN BANKS
Technology plays a very important role in bank’s internal control mechanisms as
well as services offered by them. It has in fact given new dimensions to the banks as well
as services that they cater to and the banks are enthusiastically adopting new
technological innovations for devising new products and services.
ATM
The latest developments in terms of technology in computer and telecommunication have
encouraged the bankers to change the concept of branch banking to anywhere banking.
The use of ATM and Internet banking has allowed ‘anytime, anywhere banking’
facilities. Automatic voice recorders now answer simple queries, currency accounting
machines makes the job easier and self-service counters are now encouraged. Credit card
facility has encouraged an era of cashless society. Today MasterCard and Visa card are
the two most popular cards used world over. The banks have now started issuing
smartcards or debit cards to be used for making payments. These are also called as
electronic purse. Some of the banks have also started home banking through
telecommunication facilities and computer technology by using terminals installed at
customers home and they can make the balance inquiry, get the statement of accounts,
give instructions for fund transfers, etc.
IT SERVICES & MOBILE BANKING
Today banks are also using SMS and Internet as major tool of promotions and giving
great utility to its customers. For example SMS functions through simple text messages
sent from your mobile. The messages are then recognized by the bank to provide you
with the required information. All these technological changes have forced the bankers to
adopt customer-based approach instead of product-based approach. Technology
advancement has changed the face of traditional banking systems. Technology
advancement has offer 24X7 banking even giving faster and secured service.
CORE BANKING SOLUTIONS
It is the buzzword today and every bank is trying to adopt it is the centralize banking
platform through which a bank can control its entire operation the adoption of core
banking solution will help bank to roll out new product and services.
HR ACTIVITIES
This Department does all the activities related to Human Resources (Hr) and
Personnel Management like job Analysis, Job Design, job Description, job
Redesign, job Specification, Recruitment (is the process of finding and attracting
During My Internship.
On the very first day our manager Mr. serwer Malik guides me about the rules and
After this the bank officer Mr. Shakeel guides me about the deposit clip to fill.
And also guides me about the use of deposit clip. After this guides I starts the
Then I get the information about the account open in the bank from the bank
officer mr. Anwar. But I cannot perform it because it was not allowed to the
I also get the information about the process to issue the Demand Draft. And fill
I also get performed the activity to fill the performa of Bank of Punjab on line.
I also made the collections of the branch from different branches of the other
bank.
I helped many times to our credit officer to maintain the necessary papers of
systematically.
1. The work on the computers of the bank was not allowed to me.
4. Show the secret accounts of the different customers was also prohibited
during my internship.
5. Issuance of Demand draft to the customers of the Bank personally was not
allowed to me.
Deposits
Years Deposits (Rs in Millions)
2005 17101
2006 15019
2007 17028
2008 19034
2009 23767
Advances
Years Deposits (Rs in Millions)
2005 5612
2006 5161
2007 6144
2008 5772
2009 6621
Investment
Years Deposits (Rs in Millions)
2005 6581
2006 4991
2007 7866
2008 5970
2009 8295
2005 1795
2006 1823
2007 2180
2008 2391
2009 2313
Total Assets
2005 19886
2006 18215
2007 21275
2008 24802
2009 29532
Profit
2005 123
2006 28
2007 356
2008 222
2009 283
Growth of Shareholders
Years Deposits (Rs in Millions)
2005 5389
2006 5389
2007 5896
2008 6436
2009 5891
Balance Sheet
Horizontal Analysis
Horizontal Analysis
Horizontal Analysis
Comparison of two or more years’ financial statement is called Horizontal Analysis.
It shows the changes between years both in rupee and percentages form. So in this
way it facilitates the analyst to predict about the ways if the business in which it is
going. It emphasis the proportional relationship between the reporting periods, rather
than with in the reporting period.
In this report I shall use this type of comparative financial statement analysis to
analyze the performance of The Bank of Punjab.
This table and graph shows the trend of Gross Income, profit before tax, and Net
income.
This table and graph shows the trend of current Liabilities, Deferred Liabilities
and Long Term Liabilities during the period 2005-09
RATIO ANALYSIS
The relationship of one item to another expressed in simple mathematical form is known
as a ratio. A single ratio in itself is meaningless because it does not furnish a complete
picture. A ratio becomes meaning full when compared with some standard. So we have
taken ratios and percentage of the BOP based in its record of the past financial and
operating performance. On the following pages, I make the analysis of the financial
statements of BOP by using related items for the last five years.
Remarks.
The return on assets shows a increasing trend, which is good sign for the BOP.
Return on deposits is also not stable; in starting years it increases and then
decreases and knows again increase. This is due to an increase in deposits and
less increase in profit.
The ROE ratio of five years of BOP indicates that the profitability of the bank with
equity is increasing day by day. This looks to be very positive sign.
Profitability Ratios.
Remarks.
The net profit margin of five years indicates that the income of the BOP after
paying its non-productive expenses is increasing year by year, which is a very good sign
for the bank. As I see the operating profit of the bank shows a increasing trend in ratio.
This shows that the earning capacity of the bank is increasing year by year.
Remarks:
Earning of BOP shows the increasing trend. This shows that the earning capacity
of a single share is increasing and shareholders are earning increase every year. This is
very good sign for BOP. This ratio should be as high as possible because it has a great
Regulatory Ratios:
Remarks.
Advances to deposits ratio of The Bank of Punjab shows that the portion
of loan in total deposit of the bank is not stable, 1st three year from 2005 to 2007 increase
then decrease. It means that the credit (advances) circulation of the bank has fallen from
36% to 28% during the last five years, which is a not good sign. And the cash to deposits
ratio is also decrease from 42% to 12%.
Remarks:
This ratios is showing increasing trend, in 2009 it decreased. This means that deposit of
the banks are decreased in 2009 and assets are also decreased in 2009, which is not good
Efficiency Ratios:
given bonus.
Conclusion
The Bank of Punjab is contributing a lot towards the industrial development and
capital formation in the country. As it is exhibit from the data regarding the
bank’s financial performance as shows in the financial performance as shows in the
financial analysis, that bank is sharing major banking business of the country.
Further more the policies and schemes as are introduced and carried on by the
bank are of great source of help in its trading and non-trading growth.
They facilitate trade both inside and outside the country. The Bank if Punjab
has endeavored to remain in the forefront of modern financial institutions
and has consistently shows tremendous growth in all area of its activity.
However after scheduling, due to its emphasis on consolidation and controlled
lending, the growth of profit has somewhat declined.But the bank’s performance is
The policies of the bank are uniform and going very smoothly. The employees are given all
the possible facilities and generous compensation. In return employees are stressed for their
best efficiency. Merit policy prevails in all the activities of the bank. Bank
Management has studied the administrative policies of all other banks, and all their
problems and drawbacks are planned to be avoided. Therefore, the policies of the
The progressive approach and trend towards progress and prosperity reflects that
bank will touch the zenith of development and progress. The dedicated,
enthusiastic and motivated employees can bring that time even earlier.