B

BANK OF PUNJAB

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.

Ackno led!e"ent Praise be to Almighty Allah, the Most Merciful and Magnificent and to his Holy Prophet Muhammad (Peace e !pon Him" #ho is forever a torch of guidance and kno#ledge for humanity as a #hole$ % feel deep sense of gratitude to manager of &he ank of Pun'ab shah rukn(e(alam ranch Multan for allo#ing to me to do my internship and also providing me necessary assistant and guidance$ % o#e depth of gratitude to my affectionate parents, and campus in charge mam )ainab rehman #ho supported me morally and inspired me to the higher ideas of life$ My gratitude also goes to all those friends #ho provided me any assistance in #hat so ever manner in the preparation of this study$

#$ec%ti&e '%""ary % have presented my report into * main sections$ %n the (st section % have described the introduction, nature and history of +P$ ,etails of products and services, introduction of all departments and the branch #here % did my internship and the task done by me during my training$ %n the )nd section %-ve made the complete ration analysis, vertical and hori)ontal analysis and +P comparison #ith the industry$ %n 2../ critical analysis does not provide satisfactory results, the main reason is the loss on revaluation of assets (Hames 0han 1raud cause"$ %n the *rd section % have suggested some recommendations in the light of ratios and 2W+& analysis$ +P has negative #orking capital in all the three years so it is essential to increase current assets and reduce investment in fi3ed assets$ Anne3es and reference and sources used are also described in this section$ 2ince the incorporation the ank has gro#n manifold sho#ing remarkable gro#th in all aspects$ 4specially, after the current management took over the affairs of the bank in 2..5 there has been tremendous gro#th in all its facets of operations as a result of application of prudent and pragmatic policies #ith futuristic approach$ +#ing to its significant performance, profitability, financial standing and market penetration the ank has attained reputation of a responsible corporate citi)en playing a pivotal role in economic and social development of the country$ 2ound financial footing, improved profitability and competent management are the key factors taken into consideration by PA67A, the credit rating agency, #hile assigning to the ank highly credible ratings of AA for long(term and A1 for short(term #hich is the highest rating in this category$

'canned *o+y o, Internshi+ *o"+letion *erti,icate

Table o, *ontent ,edication$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2 Ackno#ledgement$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$* 43ecutive 2ummary$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$8 2canned 6opy of %nternship 6ompletion 6ertificate$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9 &able of 6ontent$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$: 1$ rief %ntroduction of the +rgani)ational usiness 2ector$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/ +ver ;ie# of the +rgani)ation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/ a$ rief History$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$/ b$<ature of the +rgani)ation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$= c$ usiness ;olume$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$= d$P7+,!6& >%<42$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1. 247;%642$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*8 e$ 6ompetitors$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*5 *$ +rgani)ational 2tructure$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*/ a$+rgani)ational Hierarchy 6hart$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*/ 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,epartment$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9. a$ ,epartmental Hierarchy$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9. c$ 1inance and accounting operations$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9. 5 1unctions of 1inance ,epartment$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$91 a" Accounting 2ystem of the organi)ation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$91 b" 1inace system of the organi)ation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$92 c" !se of electronic data in decision making$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9* d$ 2ources of 1unds $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$98 e$ Allocation of 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&H74A&?$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9= 6+<6>!2%+<$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9= 746+MM4<,A&+<2$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$:. 7eference and 2ources !sed$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$::

(- Brie, Introd%ction o, the Or!ani.ational B%siness 'ector ank of Pun'ab is a commercial bank competing in the banking sector of Pakistan successfully$ 4stablished in 1=/=, in pursuance of &he ank of Pun'ab Act 1=/= and #as given the status of scheduled bank in 1==8$ &he centres in the country$ &he ank provides all types of banking services such as ,eposit in >ocal 6urrency, +P First P%n/ab Modaraba (%slamic 6lient ,eposit in 1oreign 6urrency, 7emittances, Advances to usiness, &rade, %ndustry and Agriculture A #holly o#ned subsidiary of 2ervices (Pvt" >td$ O&er 0ie o, the Or!ani.ation a- Brie, History 4stablished in 1=/=, in pursuance of &he status of scheduled bank in 1==8$ &he country$ &he ank of Pun'ab Act 1=/= and #as given the ank of Pun'ab is #orking as a scheduled mode of financing" #as established in 1==2 and is being managed by Pun'ab Modaraba ank of Pun'ab is #orking as a scheduled commercial bank #ith its net#ork of 252 branches at all ma'or business

commercial bank #ith its net#ork of 252 branches at all ma'or business centers in the ank provides all types of banking services such as ,eposit in >ocal usiness, ank of Pun'ab has indeed entered a ne# era of 6urrency, 6lient ,eposit in 1oreign 6urrency, 7emittances, and Advances to &rade, %ndustry and Agriculture$ &he

science to the nation under e3perience and professional hands of its management$ &he ank of Pun'ab plays a vital role in the national economy through mobili)ation of hitherto untapped local resources, promoting savings and providing funds for investments$ Attractive rates of profit on all types of deposits, opening of 1oreign 6urrency Accounts and handling of 1oreign 43change business such as %mports, 43ports and 7emittances, 1inancing, &rade and %ndustry for #orking capital reDuirements and money market operations are some facilities being provided by the policy of ank$ &he lending ank is not only cautious and constructive but also based on principles of ank of Pun'ab has introduced E0issan ,ost Agriculture /

prudent lending #ith ma3imum emphasis on security$ As agriculture is considered as backbone of our economy the

1inance 2chemeE to small farmers$ A #holly o#ned subsidiary of 2ervices (Pvt" >td$

+P, 1irst Pun'ab

Modaraba (1PM" #as established in 1==2 and is being managed by Pun'ab Modaraba ,uring the year +P incurred a loss and received from @ovt$ of Pun'ab 1. illion$ b- Nat%re o, the Or!ani.ation %t is principally engaged in commercial banking and related services #ith its registered office at +P &o#er, 1.( , lock 4(2, Main oulevard, @ulberg %%%, >ahore$ &he ank has 252 branches (2..5? 252 branches" in Pakistan and A)ad Fammu and 0ashmir at the year end$ &he ank is listed on >ahore, 0arachi and %slamabad 2tock 43changes$ &he ank are held by the @overnment of Pun'ab$ Pun'ab Modaraba ank of Pun'ab and is ma'ority shares of the

2ervices (Private" >imited is a #holly o#ned subsidiary of &he A unit of service industry of Pakistan,

primarily engaged in the business of floating and managing modarabas$ +P (commercial bank" is engaged in the borro#ing, lending and advancing of money, the dra#ing, making, accepting, discounting, buying, selling, collecting and dealing in bills of e3change, promissory notes, drafts, bills of lading, receipts, #arrants, debentures, certificates etc$ %t is also engaged in the buying, selling of foreign e3change including foreign bank notes, the acDuiring ,holding, issuing on commission , under#riting and dealing in stocks, funds, shares, debentures, the negotiating of loans and advances , the receiving of all kinds of bonds, valuables on deposit or for safe custody$ &he providing of safe deposit vaults the collecting, and transmitting of money and securities$ c- B%siness 0ol%"e &he bank of Pun'ab #as constituted in pursuance of the ank of Pun'ab Act 1=/= and it started #orking on 19<ov$ 1=/=$ %ts registered Head +ffice is situated at 5(4gerton 7oad, >ahore$ &he +P #as given the status of scheduled bank by the state ank of Pakistan on 2eptember 1=, 1==8$ Authori)ed capital of &he ank of Pun'ab as on *1(12(2../ is 72$1,...,...,...A((72$

1..,...,... ordinary shares of 72$ 1.$.. each"$ =

Iss%ed s%bscribed and +aid %+ ca+ital )112 %ssued subscribed and paid up capital of the bank fully paid in cash is 3'19,333,34045(3'- 193,333/- ordinary shares of 7s$1.$.. each fully paid in cash"$ 2hares issued for consideration other than cash ( onus 2hares" are 3s509,464,036 45 (3s- 5,287,974 A(ordinary shares of 7s$ 1.$.. each as fully paid bonus shares"$ 2o total paid up capital of the bank is 3s- 528,797,37645 63s509,464,036 7 19,333,3408@overnment of the Pun'ab (@ovt$ of Pun'ab" held 91G shares in the ,ecember 2../$ &he ank as at *1 ank, subseDuent to the year end, has received 7s$1.,...,...

thousand from the @overnment of the Pun'ab as advance subscription money$ &he bank of Pun'ab is listed at >ahore and 0arachi 2tock 43changes$ 1ifty one percent (91G" of the share capital is held by the @overnment of Pun'ab and the rest is o#ned by Pakistani individualsAfirms and foreigners$ ,uring the year the ank has incurred a loss of 7s$ 1.,.9=,9.9 (thousand"$ &he paid(up capital and reserves (net of losses" of the ank amounts to 7s$ 9,.9:,92. (thousand" as against the minimum regulatory capital reDuirements of 7s$ 9,...,... (thousand" and 6apital AdeDuacy 7atio (6A7" remained belo# the prescribed level of =G$ Moreover, advances to t#o groups of companies aggregating to 7s$ 12,*..,... (thousand" have not been sub'ected to provisioning criteria as prescribed in 2 P-s Prudential 7egulations (PageH25 I 2/ of +P 6onsolidation 2tatement

d- P3ODU*T 9IN#' *%rrent Acco%nt: &he Accounts shall be opened upon submission of duly filled(in ank-s prescribed Account +pening 1orm properly introduced in the manner provided and on submitting all such documents as may be revised by the ank$ &he ank reserves the right to demand such relevant documents even after opening of account as deemed necessary$ &he ank has the right to refuse to open an Account #ithout assigning any reason$

1.

&he Accounts shall be opened #ith an initialAminimum deposit as stipulated by the ank from time to time unless specifically e3empted$ A distinctive number shall be allotted to every account and this number should be Duoted in all correspondence relating to the account and at the time of making a deposit or #ithdra#al$ &he ank reserves the right to change the Account <umber or any part of it in order to meet its book keepingAadministration reDuirement$ Ho#ever, intimation of change in the account number shall be sent to the account holder$ (a" Account for the recipient of Jakat or recipient of grants from opened #ith an initial deposit of 7s$1..A( &he Accounts may be opened singly in one name or 'ointly in t#o or more names$ ,eposit may be accepted from minors provided the account is opened and operated through a guardian$ &he Account thus opened #ill continue to be operated upon by the guardian even if the minor attains the age of ma'ority$ &he necessary consent to this effect #ill be obtained at the time of opening of the account$ &he orders of the court #ill, ho#ever, be follo#ed in case the guardian is appointed by the court$ All moniesAinstruments to be deposited in an account should be accompanied by pay(in( slip sho#ing the title and number of the account$ &he entry of transaction shall be authenticated by putting ank-s stamp under the 'oint signatures of t#o officers of the ank on the pay(in(slip and counterfoil thereof$ Ho#ever in case of branches #here teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits$ Withdra#als #ill not be allo#ed against postdated (payable on any future date" and stale (.: months after issuance date" 6heDues and against un(cleared funds$ Where any account is not conducted to the satisfaction of the ank, the account may be closed #ithout any notice and the balance #ill be remitted to the depositor at the address given by the Account Holder(s"$ For Ne *%sto"er All 6, accounts #hich are not operated upon by the account holders for a period of one year #ill be classified as dormant$ After passing one year in the dormant status, that is, no operation in the account for a continuous period of t#o years, the account shall be classified as inoperative$ &his entails certain restrictions on the operation of such 11 ait(ul(Mall, maybe

accounts, for reactivation, the account holder must in person reDuest for a change of status and #ill produce original 6<%6 or Passport or Pakistan +rigin 6ard (P+6" or <ational %dentity 6ard for +verseas Pakistani (<%6+P" #ith photo copy for ranch A ank attestation$ After passing further / years in inoperative status, i$e$, if a 6, account is not operated upon by a customer for a continues period of ten years, it #ill be classified as unclaimed deposit account and #ill be surrendered to 2 P as per the provisions (section *1" of anking 6ompanies +rdinance 1=:2 For #$istin! Acco%nt Holders: &he period of conversion of a normal 6, account to dormant has been enhanced from .: months to one year, since last operation in the account, #ith effect from Fanuary 2../$ Withholding &a3 at the rate notified by the @overnment of Pakistan from time to time #ill be deducted out of profits payable to the Account Holders$ JA0A& is leviable on the assets as described in the Jakat I !shr +rdinance 1=/. (as amended from time to time" on balances #hich #ill fall #ithin the definition of )akatable assets as notified by the @overnment of Pakistan on valuation date each year, provided ,eclaration (originalAattested photocopy" for e3emption from compulsory deduction of )akat is filed on the prescribed proforma (6J(9." in the prescribed manner one month preceding the valuation date e3cept in the case of ne#ly opened accounts$ &he branches shall ensure completion of all the formalities reDuired by 2tate ank of Pakistan vide Prudential 7egulation <o$M(1#ith regard to 0<+W C+!7 6!2&+M47$ Basic Bankin! Acco%nt &he minimum initial deposit #ill be 7s$1...$ <o profit #ill be Payable$ <o fee (service charges" for maintaining such accounts #ill be charged$ &here #ill be no limit for maintain minimum balance$ %n the cases, there balance in AKs remain E<%>E for a continuous : month period, such accounts #ill be closed$ Account holder #ill be allo#ed a ma3imum of 2 deposit transactions and 2 checking #ithdra#als, free of charge either through cashAthrough clearing per month other#ise service charges of a regular banking account shall be applicable for that month as per ankKs 2chedule of 6harges$ 12

!nlimited free of charge A&M #ithdra#als from case of #ithdra#als from <ote these anks shall be applicable for such transaction$

anKs o#n A&MKs #ill be allo#ed$ %n

A though the A&M Machine of other anks, the 6harges of

%f any e3isting customer desire to get his regular banking account converted into maintained$ &he facility for conversion into 'A0IN; A**OUNT' P3OFIT AND 9O'' 'HA3IN;: P>2 2aving account 2enior citi)en saving account @hareloo saving account Jiada Munafa saving account P>2 2aving Profit Plus account 6orporate premium account 6orporate premium term account Munafa hi Munafa term account +P P>2 supreme saving account +P 16C supreme saving account +P 16C supreme current account A #ill be provided free of charge

asic

anking Account,he A she may kindly contact the branch #here his A her account is being

Pehle Munafa ,eposit scheme 9OAN P3ODU*T': (*OMM#3*IA9 9OAN ) 7unning 1inance ,emand 1inance 6ash 1inance

*ON'UM#3 9OAN

Aasaish >oan Luick >oan House >oan 1*

Personal >oan <'M# 9OAN

6<@ 1illing 2tation scheme >ady 4ntrepreneur 1inancing 2cheme Auto >ease 1inance 0arobar erhao 2cheme 1ertili)er dealer financing Atlas Honda Authori)ed ,ealer 1inance scheme Purchase of officeA shop scheme =A;3I*U9TU3# *3#DIT

Agri 1inance ranches (<e#" Agricultural 1inance 2cheme 0issan ,ost &ractor 2cheme 2econd hand &ractor lease finance scheme 0issan dost Aabiari scheme 0issan dost Mechani)ation scheme 0issan dost 1arm transport scheme 0issan dost 4slah(4(Ar)i scheme 0iisan dost live stock development scheme >ivestock breed improvement trough ;;W 0issan dost commercial Agro 2ervices 0issan dost Agri Mall 1inance 2cheme 6orporate 1arming 1inance scheme 6ommercial lease finance &ractor scheme ,emand 1inance(2heds 6onstruction and 6ivil #orks >andless People for purchase of of uffaloes >ease finance(>ivestockAPoultry and 1ish 1arms 18

0issan dost Model ,airy 1arms 0issan ,ost Model Milk 6ollection 6entre 1inancing for Potato @ro#er 0issan ,ost @reen House 1inance 1acility 0issan ,ost 6old 2terage 1inance 1acility @reen &ractor 2cheme )1125)11>

(8 P9' Acco%nt &he Accounts shall be opened upon submission of duly filled(in ank-s prescribed Account +pening 1orm properly introduced in the manner provided and on submitting all such documents as may be revised by the ank$ &he ank reserves the right to demand such relevant documents even after opening of account as deemed necessary &he ank has the right to refuse to open an Account #ithout assigning any reason$ &he Accounts shall be opened #ith an initialAminimum deposit as stipulated by the ank from time to time unless specifically e3empted$ A distinctive number shall be allotted to every account and this number should be Duoted in all correspondence relating to the account and at the time of making a deposit or #ithdra#al$ &he ank reserves the right to change the Account <umber or any part of it in order to meet its book keepingAadministration reDuirement$ Ho#ever, intimation of change in the account number shall be sent to the account holder$ (a" Account for the recipient of Jakat or recipient of grants from 29$11$1==5 I %nst 6ir =/A9* dated .*$.:$1==/" &he Accounts may be opened singly in one name or 'ointly in t#o or more names$ ,eposit may be accepted from minors provided the account is opened and operated through a guardian$ &he Account thus opened #ill continue to be operated upon by the guardian even if the minor attains the age of ma'ority$ &he necessary consent to this effect #ill be obtained at the time of opening of the account$ &he orders of the court #ill, ho#ever, be follo#ed in case the guardian is appointed by the court$ 19 ait(ul(Mall, maybe opened #ith an initial deposit of 7s$1..A( (introduced vide %nst 6irH=5A12= dated

All moniesAinstruments to be deposited in an account should be accompanied by a pay(in( slip sho#ing the title and number of the account$ &he entry of transaction shall be authenticated by putting ank-s stamp under the 'oint signatures of t#o officers of the ank on the pay(in(slip and counterfoil thereof$ Ho#ever in case of branches #here teller system has been introduced, teller only shell authenticate the transactions up to the prescribed limits$ Withdra#als #ill not be allo#ed against postdated (payable on any future date" and stale (.: months after issuance date" 6heDues and against un(cleared funds$ Where any account is not conducted to the satisfaction of the ank, the account may be closed #ithout any notice and the balance #ill be remitted to the depositor at the address given by the Account Holder(s"$ P>2 2avings Accounts may also be opened by charitable institutions, for Provident 1unds and other funds of benevolent nature by >ocal odies, Autonomous 6orporations, 6ompanies, Associations, 2ocieties, 4ducational %nstitutions, 1irms etc$ and in all other cases #here such accounts are reDuired to be opened under the orders of 6ompetent 6ourt of >a# <ot more than one P>2 2avings Account may be opened at a branch in any one name e3cept in the name of a parent or guardian for more than one child or for keeping funds of specified nature category by an entity, #ith the ank-s prior approval$ Profit payable or >oss recoverable on P>2 2aving Accounts to be credited or debited #ill be determined by the ank at its sole discretion on the basis of its net #orking results at the end of each half(year #ithin the time prescribed by 2 P from the date of the close of the half(yearly books of accounts of the ank$ &he rates of profits may vary from period to period vi) Fanuary to FuneAFuly to ,ecember each year$ 6alculation of Profit on P>2 2aving Accounts #ill be made for each calendar month on the lo#est credit balance of an account bet#een the close of the :th day and the last day of the month$ Ho#ever, profit accrued even for 7e$ 1A( after deducting #ithholding ta3 #ill be payable to all Account Holders$ When an account is 6>+24, before declaration of profit rates, the accrued profit #ill be first credited in the account at the profit rates previously declared by the ank$ Ho#ever, no recovery or payment of profit as a result of increaseAdecrease in the

1:

rate of profit #ill be affected upon such AA6 holders after announcement of half(yearly profit rates by the ank$ Withholding &a3 at the rate notified by the @overnment of Pakistan from time to time #ill be deducted out of profits payable to the Account Holders$ JA0A& is leviable on the assets as described in the Jakat I !shr +rdinance 1=/. (as amended from time to time" on balances #hich #ill fall #ithin the definition of )akatable assets as notified by the @overnment of Pakistan on valuation date each year, provided ,eclaration (originalAattested photocopy" for e3emption from compulsory deduction of )akat is filed on the prescribed Performa (6J(9." in the prescribed manner one month preceding the valuation date e3cept in the case of ne#ly opened accounts$ &he branches shall ensure completion of all the formalities reDuired by 2tate ank of Pakistan vide Prudential 7egulation <o$M(1#ith regard to 0<+W C+!7 6!2&+M47$ )8 'enior *iti.ens 'a&in! Acco%nt &his is a saving bank product available for all senior citi)ens i$e$ persons of :. years and above #ho are eligible to open a saving account as per our ank-s criteria$ &he account can be opened singly or preferably 'ointly (husband I #ife" provided either of them is of :. years or above$ &his product is designed to attract procure depositAsavings of senior citi)ens by offering attractive, innovative incentives and higher rate of profit to senior citi)ens$ &he Main 1eatures are? A customer can open only one this category, the give any profit$ &he account can be opened #ith a minimum initial deposit of 7s$1.,...A($ Ho#ever in case average deposit during the month falls belo# 7s$1.,...A(, account maintaining charges shall be levied as per ank-s 2chedule of 6harges$ &he profit slab is as follo#s? Minimum Monthly alance M 43pected rate of profit 15 +P 2enior 6iti)ens 2aving Account singly or 'ointly regardless of the branch$ %n case it is found out that more than one account e3ists under ank reserves the right to recover I forfeit the profits paid or not to

7s$ . upto 1.,...A( <ormal P>2 2 rate 7s$1.,..1 upto 2..,...A( 9 G p$a$ 7s$2..,..1 upto 8..,...A( 5 G p$a$ 7s$8..,..1 upto 9..,...A( / G p$a$ M&his product is governed under P>2 rule of Profit I >oss sharing system$ &he rates mentioned are e3pected and the ank reserves the right to revie#Arevise the profit rates Duarterly$ Ma3imum profit N /$. G p$a$ as per different slabs shall be paid on minimum monthly deposit upto 7s$9..,...A($ ,eposit can e3ceed 7s$9..,...A( but no profit #ill be paid on amount over and above 7s$9..,...$ &he profit #ill be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month$ &he profit #ill be credited on monthly basis in the respective account$ Profit once disbursed #ill not be recovered in case of decrease in rate at the time of announcement of Half Cearly profit rates$ Ho#ever in case of rise in profit rate the difference amount #ill be paid$ 43isting senior citi)en account holders can also open account under this scheme$ %n case they #ish to close their e3isting P>2 or other account, same may be allo#ed #ithout deducting account closure charges Jakat #ill be deducted as per la# like any other savingAprofit bearing account$ Withholding ta3 #ill be deducted from the profit as per la# in force Preferably P>2 2 'oint aAc should be opened #ith special instructions of O4ither or 2urvivorP #hich must be 'ointly authenticated under full signatures of the Foint AAc holders$ !nlimited transaction (debitAcredit" 1ree complimentary issuance of first A&MA,ebit 6ard 1ree complimentary issuance of first 6heDue ook of 29 leaves 29 G reduction in rental charges of small or medium locker sub'ect to availability$ Priority banking especially in utility bills payment, counter service etc

1/

&he product carries all characteristicsAconditions pertaining to P>2 2 issuance of ,,A&&AM&AP+ etc as per

account i$e$

ank-s 2chedule of 6harges e3cept payment of

profit #hich shall be paid on monthly basis on minimum monthly deposit upto 7s$9..,...A( only as per admissible rates sho#n against each minimum monthly balance$ ;harayloo 'a&in! Acco%nt &his is a saving bank product available for all females #ho are eligible to open a saving account as per our house#ives &he Main 1eatures are? A customer can open only one this category, the give any profit$ &he account can be opened #ith a minimum initial deposit of 7s$1.,...A($ Ho#ever in case average deposit during the month falls belo# 7s$1.,...A(, account maintaining charges shall be levied as per ank-s 2chedule of 6harges &he profit slab is as follo#s? Minimum monthly balance 7s$ . upto 1.,...A( M 43pected rate of profit <ormal P>2 2 declared +P @harayloo 2aving Account singly or 'ointly regardless of the branch$ %n case it is found out that more than one account e3ists under ank reserves the right to recover I forfeit the profits paid or not to ank-s criteria$ &he account can be opened singly or 'ointly #ith of e3patriates I students$ husband$ &his product is designed to attract procure depositAsavings of ladies particularly

rate 7s$ 1.,..1 upto 29.,...A( 5$29 G p$a$ M &his product is governed under P>2 rule of Profit I >oss sharing system$ &he rates mentioned are e3pected and the Duarterly$ Ma3imum profit N 5$29 G p$la$ shall be paid on minimum monthly deposit upto 7s$29.,...A( but over 7s$1.,...A($ ,eposit can e3ceed 7s$29.,...A( but no profit #ill be paid on balance over and above 7s$29.,...$ &he profit #ill be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month$ 1= ank reserves the right to revie#Arevise the profit rates

&he profit #ill be credited on monthly basis in the respective account$ Profit once disbursed #ill not be recovered in case of decrease in rate at the time of announcement of Half Cearly profit rates$ Ho#ever in case of rise in profit rate the difference amount #ill be paid$ 43isting females account holders can also open account under this scheme$ %n case they #ish to close their e3isting P>2 or other account, same may be allo#ed #ithout deducting account closure charges Jakat #ill be deducted as per la# like any other savingAprofit bearing account$ Withholding ta3 #ill be deducted from the profit as per la# in force$ Preferably P>2 2 'oint aAc should be opened #ith special instructions of O4ither or 2urvivorP #hich must be 'ointly authenticated under full signatures of the Foint AAc holders$ !nlimited transaction (debitAcredit"$ 1ree complimentary issuance of first A&MA,ebit 6ard 29 G reduction in rental charges of small or medium locker sub'ect to availability Priority banking especially in utility bills payment, counter service etc &he product carries all characteristicsAconditions pertaining to P>2 2 i$e$ issuance of ,,A&&AM&AP+ etc as per account

ank-s 2chedule of 6harges e3cept

payment of profit #hich shall be paid on monthly basis on minimum monthly deposit upto 7s$29.,...A( only as per admissible rates sho#n against each minimum monthly balance$ ?iada M%na,a sa&in! Acco%nt &his is a saving bank product available for general public i$e$ persons #ho are eligible to open a saving account as per our ank-s criteria$ &he account can be opened singly or 'ointly$ &his product is designed to attract procure depositAsavings of general public particularly salaried and small investors$ A customer can open only one +P Jiada Munafa 2aving Account singly or 'ointly regardless of the branch$ %n case it is found out that more than one account e3ists under

2.

this category, the give any profit$

ank reserves the right to recover I forfeit the profits paid or not to

&he account can be opened #ith a minimum initial deposit of 7s$1.,...A($ Ho#ever in case average deposit during the month falls belo# 7s$1.,...A(, account maintaining charges shall be levied as per ank-s 2chedule of 6harges$ &he profit slab is as follo#s? Minimum monthly balance 7s . upto 1.,...A( 7s$1.,..1 upto 2..,...A( 7s$2..,..1 upto 8..,...A( 7s$8..,..1 upto 9..,...A( M&his product is governed under P>2 rule Duarterly$ Ma3imum profit N 5$9 G p$a$ as per different slabs shall be paid on minimum monthly deposit upto 7s$9..,...A($ ,eposit can e3ceed 7s$9..,...A( but no profit #ill be paid on amount over and above 7s$9..,...$ &he profit #ill be calculated on monthly basis based on the minimum monthly balance maintained by the customer during that particular month$ &he profit #ill be credited on half yearly basis in the respective account as per rules of P>2 2 $ 43isting account holders can also open account under this scheme %n case they #ish to close their e3isting P>2 or other account, same may be allo#ed #ithout deducting account closure charges Jakat #ill be deducted as per la# like any other savingAprofit bearing account$ Withholding ta3 #ill be deducted from the profit as per la# in force$ Preferably P>2 2 'oint aAc should be opened #ith special instructions of O4ither or 2urvivorP #hich must be 'ointly authenticated under full signatures of the Foint AAc holders$ !nlimited transaction (debitAcredit" 1ree complimentary issuance of first A&MA,ebit 6ard$ M 43pected rate of profit <ormal P>2 2 rate 8$. G p$a$ 9$. G p$a$ 5$9 G p$a$ of Profit I >oss sharing system$ &he rates

mentioned are e3pected and the ank reserves the right to revie#Arevise the profit rates

21

&he product carries all characteristicsAconditions pertaining to P>2 2 account including payment of profit on half yearly basis i$e$ issuance of ,,A&&AM&AP+ etc as per ank-s 2chedule of 6harges on minimum monthly deposit upto 7s$9..,...A( only as per admissible rates sho#n against each minimum monthly balance$ P9'5'a&in! Pro,it Pl%s Acco%nt %ndividuals, corporations, organi)ations and various provincial A federal government departments can open accounts under the scheme$ &his is an operatingAchecDuing account &he accounts can be opened in individual or 'oint names$ &he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land$ Average balance during a calendar month #ill be taken to determine the deposit slabs and applicable profit rate for that month for the purpose of creating provisons$ Ho#ever, in case the average balance in any month falls belo# 7s$ 1(M" being the minimum slab, the account for that particular month #ill be treated as an ordinary Pls(sb account and profit #ill be calculated on minimum balance during the month at the normal rate declared for Pls( sb account$ Profit payable on half yearly basis$

*or+orate Pre"ier Acco%nt &his account has been introduced for corporate clients$ &his is an operatingAchecDuing account Profit on the account #ill be calculated on daily product basis by determining the slab on the basis of average balance maintained in the account$ &he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land 22

Profit payable on monthly basis$

*or+orate Pre"ier Ter" Acco%nt &his account has been introduced for corporate clients$ &his is non operatingAchecDuing account Minimum amount of investment is 7s$9..(M"$ &he deduction of Jakat and Withholding ta3 #ill be applicable as per la# of the land$ Profit payable at maturity

M%na,a Hi M%na,a &his is a term deposit product$ &he term is from 1 month to 9 years and theprofit is paid on monthly basis$ &he minimum amount of deposit is 7s$1..,...A($ &he rate of profit is from /$. G p$a$ to 12 G p$a$ depending on the tenure #hich is higher than ank-s normal term deposits as follo#s?

2*

&erm

43pected Profit Minimum 7ates p$a$ amount ,eposit 7s$ 1..,...A( 1..,...A( 1..,...A( 1..,...A(

Profit payment on monthly of basis (With Holding &a3 to be deducted" 7s$/** 7s$/59 7s$1... 7s$1112

* "onth : "onths 1 year 9 year

1.$.. G 1.$9 G 12-11 @ 1(-11 @

M &his product is governed under P>2 rule i$e$ the rates mentioned are e3pected and the ank reserves the right to revise the rates and terms I conditions of profit under Profit I >oss sharing system$ P9' '%+re"e 'a&in! Acco%nt %<64<&%;4 Average alance &o 1ree from 7s$*..,... Average alance &o Q unlimited 7s$1,...,..1 Average I +;47 alance

from from 7s$9,...,..1

7s$1,...,...A( 7s$9,...,...A( %nter( 1ree Q 1ree Q 1ree unlimited unlimited transaction +ne 6ard Allo#ed

cityA#ithin(city

transaction +ne 6ard Allo#ed

depositA#ithdra#al transaction 1ree %ssuance of +ne 6ard A&MA,ebit 6ard 1ree 7ene#al of Allo#ed

A&MA,ebit 6ard 1ree %ssuance of +ne 29 leaves &#o 29 leaves 1ree Q <o limit 6heDue ook per month 1ree %ssuance of ,uplicate 2tatement 1ree 6harges AAc 1 per month 7ental for <+<4 per month 2 per month +ne sub'ect 28 2mall 1ree Q <o limit +ne Medium to

to sub'ect

>ockers (smallAmedium" <o key deposit for <o lockers deposit eDuivalent 6ommission issuance

availability

availability 0ey deposit of

0ey <o 0ey deposit <o eDuivalent of small locker

of eDuivalent medium locker Q 1ree Q

small locker free 1ree Q 1ree of unlimited unlimited

unlimited

transaction

P+A,,AM&A&& transaction transaction 1reeAreduction in 1ree ( on eDual 1ree ( on eDual 1ree ( on eDual to +ut#ard ills for to last month-s to t#ice of last three times of last average balance above amount reduced .$*2G <o 6heDue return charges for cheDues * per month presented clearing in as 9 per month 1ree Q <o limit month-s month-s average and average balance balance and above this and above this this amount reduced amount reduced commission commission N .$29G N 6ollection charges

commission N .$2/G

collecting banker$ *ON'UM#3 FINAN*IN; 7eduction in processing charges upto 1.G from 1. to 9. G 7eduction in rate of markup upto 9. upto 29 bps bps <$ $ 1" &he rent free locker facility #ill be allo#ed on availability of locker and after maintaining average balance for si3 months$ upto 8. bps !pto 9. bps upto 29G !pto 9.G

29

2" &he reduction in rate of markup on 6onsumer finance #ill be on loan amount eDual to t#ice of last months average balance$ *" %n order to further facilitate the managers in targeting customers, it #ill be at the discretion of the manager to offer the incentive package from day one$ Ho#ever it #ill be the responsibility of the branch ensure that customer completes the criteria as per above table other#ise recover the charges #aived$ 8" &he incentive package #ill be revie#ed on Duarterly basis$ &he ank reserves the right to change, modify the package$ 9" &he rate of profit #ill be same as per ank-s declared rate of P>2 2

BOP TIJA3AT A**OUNT 69*A8 %<64<&%;4 Average alance from 7s$1..,... &o 1ree Average alance from 7s$9..,..1 &o 7s$1,...,...A( Q 1ree unlimited transaction +ne 6ard Allo#ed Q <o Q Average alance from 7s$1,...,..1 I +ver

7s$9..,...A( %nter( 1ree Q 1ree unlimited unlimited transaction +ne 6ard Allo#ed

cityA#ithin(city

depositA#ithdra#al transaction 1ree %ssuance of +ne 6ard A&MA,ebit 6ard 1ree 7ene#al of Allo#ed A&MA,ebit 6ard 1ree %ssuance of +ne 6heDue ook 1ree %ssuance of ,uplicate AAc 1 per month leaves month

9. &#o 9. leaves 1ree per per month limit

2 per month 2:

1ree

<o

2tatement 1ree 6harges >ockers

limit 7ental for <+<4 +ne sub'ect availability 0ey <o deposit small locker 2mall to Medium sub'ect to availability 0ey <o 0ey deposit of eDuivalent of medium locker Q 1ree unlimited Q +ne

(smallAmedium" <o key deposit for <o lockers deposit

eDuivalent of eDuivalent small locker 6ommission issuance free 1ree of unlimited

Q 1ree unlimited

P+A,,AM&A&& transaction transaction transaction 1reeAreduction in 1ree ( on 1ree ( on eDual 1ree ( on +ut#ard ills for eDual to last to t#ice of last eDual to three month-s average above amount reduced commission N .$*2G <o 6heDue return charges in clearing for * per month as 9 per month 1ree limit Q <o cheDues presented month average times of last balance this amount reduced .$2/G and month-s this average balance above reduced commission N .$29G and this 6ollection charges

balance and above

commission N amount

collecting banker$ 1ree 6all ,eposit <o charges, <o charges, if <o charges, if 7eceipt if in o#n in o#n name in o#n name of deptt on aAc deptt on aAc 25 name or in or in favour of or in favour of favour

deptt on aAc holders or on holders or on holders behalf money account CONSUMER FINANCING 7eduction in upto 29G upto 9.G earnestAbid other for contractor-s behalf by earnestAbid debiting account other contractor-s for behalf earnestAbid by money account by for

debiting o#n money

o#n debiting o#n

processing charges upto 1.G from 1. to 9. G 7eduction in rate of markup upto 9. upto 29 bps bps

upto 8. bps

upto 9. bps

N-B- 1" &he rent free locker facility #ill be allo#ed on availability of locker and after maintaining average balance for si3 months$ 2" &he reduction in rate of markup on 6onsumer finance #ill be on loan amount eDual to t#ice of last months average balance$ *" %n order to further facilitate the managers in targeting customers, it #ill be at the discretion of the manager to offer the incentive package from day one$ Ho#ever it #ill be the responsibility of the branch ensure that customer completes the criteria as per above table other#ise recover the charges #aived 8" &he incentive package #ill be revie#ed on Duarterly basis and on the deposit procured vis(R(vis cost benefit, package can be revised do#n#ard$ 9OAN P3ODU*T' 2/

(8 *OMM#3*IA9 FINAN*# (8 3%nnin! Finance a" A!ainst Pled!e o, 'hares b" A!ainst ;o&ern"ent 'ec%rities c" A!ainst Hy+othecation o, 'tocks )8 De"and Finance 6redit facilities e3tended against registered mortgage of property (i$e, landAbuildings constructed or to be constructed" is by nature classified as a 2ecured Advance$ A formal charge on the property is established and recorded #ith the 7egistrar >and and Property termed as registered mortgage$ Advances are also made against eDuitable mortgage of property, #hereby the original title ,eeds, are deposited #ith the ank as 2ecurity and the charge is registered #ith the 7egistrar 246P$ %n case the 1inance is allo#ed to >imited 6ompanies, #here the original title documents of >andA uilding and other 1i3ed Assets are held by the senior charge holders, our charge (Pari(Pasu or ranking" as approved by 6redit 6ommittee, shall be recorded #ith the 7egistrar 2ecurities I 43change 6ommission of Pakistan (246P"$ Ho#ever, in case of Pari(Pasu 6harge, <+6s from the senior 6harge Holders shall be obtained before registration of charge #ith 246P$ %n case of borro#er-s failure to liDuidate the obligation or on classification of the advance to O<on(PerformingP the ank has a legal recourse to apply for a decree in a court of la#, to sell off the mortgaged property through auction as ordered by the court$ PO9I*A: 1acilities are disbursed or allo#ed to be availed by the customers only on receipt of a formal ,A6 issued by 76A, I duly signed by 6A, Head$ 6A, shall issue ,A6 only #hen charge ,ocuments I 2ecurities as spelled out in the 2anction Advice have been received and lodged in the safe vault, ho#ever in rare cases ,A6 shall be issued #here some of the secondary nature documents are not received for 2=

acceptable reasons and that the deferment is approved for a specified period by the level of the authority as given belo#? ( 1ormal approval for deferment of specified documents from 6redit 6ommittee shall be necessary, in terms of 6redit Policy$ ( ,A6 issued #here receipt of some of the documents is deferred shall clearly highlight the deferment approval and the period of deferment$ 43tension in the deferment period, if reDuired further shall reDuire appropriate level of credit approval <8 *ash Finance &his facility is generally provided against pledge of goods$ !nder this type of financial accommodation the facility amount is disbursed in specially opened account for the purpose$ &he pledged goods are released to the borro#er against cash payment only$ %n case the goods pledged are seasonal in nature, the customer #ould be reDuired to ad'ust the facility before the season ends$ 7ollover shall not be allo#ed$ Policy:5 asic criteria to Dualify for advances against pledge of goods is as follo#s?( 1acility is disbursed in specially opened 61 AA6 for the purpose %t shall be ensured that @oods tendered for pledge are?( 1ree from credit restrictions imposed by 2tate ank of Pakistan <ot perishable, do not reDuire special 2toring arrangementsAconditions and have short e3piry period$ 4asily marketable and their price is not highly fluctuating$ %f so higher margins shall have to be approved I retained Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the dra#ing po#er$ Where variation in pricing is observed during periodic evaluation, the customer shall be advised to make good the shortfall in the ,$P$ &he borro#ers hold an absolute un(encumbered title to the goods$ *.

)8 *ON'UM#3 FINAN*# a8 B%ick cash op Duick cash is running finance facility provided to the salaried persons through their bank accounts$ 6ustomers can #ith dra# bet#een 7s$ 9.,... to9..,... based on their salary$ An eligibility criterion for customers as #ell as customers is minimum 7s$ 19... take home salary$ b8 Ho%se loan 2alaried persons #ith maintaining account #ith bank can avail this facility #ith minimum take home salary 7s$19... per month$ c8 Bo+ car loan @ovt$ or private employees, business men and professionals can avail the from 1 to 9 years$ d8 '"art cash +ersonal loan 1acility for bank-s target market for meeting their personal needs repayable through monthly installments$ Ma3imum limit of loan is 7s 9..,... #hich is eDual to 29 take home monthly salaries$ Ma3imum duration of tenure is 9 years$ op car loan facility$ &hey can avail loan amount from 2..,... to 9.,..... and duration of tenure is

9ease Finance Facility ,or P%rchase o, Tractor %nder ;reen Tractor 'che"e )1(15)1(( %n the #ake of 6hief Minister, Pun'abKs agenda for promotion of Agriculture 2ector, @overnment of Pun'ab has decided to provide 1.... &ractors to small farmers on subsidi)ed rates$ A subsidy of 72? 2..,...A( per tractor #ill be provided to the farmers declared successful through computeri)ed balloting$ &he scheme has been titled as E@reen &ractor 2cheme 2../(.=E$ %n order to facilitate farmers and to grasp ma3imum business, our Management has approved a special product titled as E>4A24 1%<A<64 1A6%>%&C 1+7 P!76HA24 +1 &7A6&+7 !<,47 @744< &7A6&+7 26H4M4 2../(.=E #ith follo#ing terms I conditions?

*1

#9I;IBI9ITA All 1armers #ho have been declared successful through computeri)ed balloting$ &he applicant should be a resident, o#nerAself cultivator of minimum .9 Acres of agri( land free from all encumbrances$ 43isting charge are also eligible under this scheme$ &he applicant should not be a defaulter of any 1inancial %nstitution$ +P borro#ers having land under ankKs

KI'AN DO'T A;3## FINAN*# '*H#M#'

P%r+ose: Provision of financial facility to farmers for purchase of inputs (2eed, fertili)ers, pesticides, fungicides etc"$ #li!ibility: 7esident 2elf 6ultivator having ma3imum 9. acres$ &he applicant should not be defaulter of any other ank and property should be free from any encumbrances A"o%nt:
Ma3imum 7s$9..,...A( according to per acre limit of the crop$

'ec%rity: 6harge on Agriculture >and through Agri$ Pass ook$ O3 7egistered A 4Duitable mortgage of !rban property assessed by P A-s approved surveyor and cleared by ank-s legal counsel$ O3 >iDuid security in the shape ank-s 1i3ed ,eposited 7eceiptsA,26A<26 or 7egular %ncome 6ertificates$ +ne Personal guarantee of reputable person$ A6+s along #ith 7egional 6hief can #aive this condition if they deem the borro#er to be very credit #orthy$ &#o #ritten satisfactory market checking reports$

KI'AN DO'T T3A*TO3 FINAN*# '*H#M#

P%r+ose: Provision of financial facility to the farmers and non farmers (those #ho provide tractors *2

to farmers on rental basis for various tractor related operations", for purchase of &ractor on >ease$ Finance Basis#li!ibility: 7esident 2elf 6ultivator having A"o%nt: #C%ity: 1.G to 2.G of the cost of &ractor #ill be paid by the borro#er on case to case basis$ 'ec%rity: 1$ 2$ *$ Mark5%+: 19G per annum$ >ease &ractor (to be registered in the name of ank" 6harge on Agriculture >and through Agri$ Pass ook$ +ne personal guarantee of reputable person$ &#o #ritten satisfactory market checking reports$ Ma3imum 7s$ 59.,...A($

3e+ay"ent: 1. eDual half yearly installments (#ithin five years"$

KI'AN DO'T AAB3A3I '*H#M#

P%r+ose: Provision of financial facility to the farmers for installation of &ube #ell, turbines etc$ #li!ibility: 7esident 2elf 6ultivator having ma3imum 9. acres$ A"o%nt: #C%ity? 'ec%rity: 1$ 2$ *$ 8$ 9$ >ease Assets i$e$ 4ngine, &ube #ell and other related implements (&he vendor #ill issue receipt in the name of ank"$ 6harge on Agriculture >and through Agri$ Pass ook$ +ne personal guarantee of reputable person acceptable to ank$ &#o #ritten satisfactory market checking reports$ Ma3imum 7s 9..,...A($ 2.G of the cost of pro'ect #ill be paid by the borro#er$

**

Mark5%+:

19G per annum$

3e+ay"ent: /(1. eDual half yearly (#ithin four to five years"$ *lean *o""%nity4;ro%+ Financin! 6Prod%ction 4De&elo+"ents 9oans8 To '"all Far"ers ;ro%+ %nder Kissan Dost 'che"es &he said scheme #ill be group based financing scheme for small farmers #ho do not have tangible security to offer to banks as collateral$ &he scheme has been structured on group based lending approach #herein banks can finance to individuals through 2mall 1armer @roups$ With the success stories of innovative lending techniDues like @roup based>ending (@rameen Model", 2elf Help @roups (%ndian Model", 2olidarity @roup (>atinAmerica Model", 6ommunity based +rgani)ation (;illage approachesS there is paradigm shift in the lending smallfarmersAborro#ers$ &he @rameen of angladesh, anking" and other to the methodologies

ank for Agriculture and

Agricultural 6ooperatives ( AA6", &hailand and

ank 7akyat %ndonesia ( 7%", have

proved to be most successful agriArural sustainable financial institutions serving mostly to small farmers$ &he success of these financial institutions has broken the myth that people #ithout tangible assets can neither pay the real cost of credit, nor save, and in general are poor credit risks$ P%r+ose &he scheme #ill target farming community involved in small agri related activities i(e livestock, dairy, poultry, fisheries, horticulture etc

SERVICES
&hese are the services provided by the +P$ A&M 1acility >etter of 6redit Pay +rder +n(>ine anking *8

 4( anking ,ebit 6ard 6onsumer 1inancing Agriculture 1inancing 6orporate 1inancing 6ommission free 7emittance ,emand ,rafts 6ollection of !tility >ockers 1acility A%to"ated Teller Machine 6ATM8 &hrough the A&M-s 6ustomers have access to the various services such as #ithdra#al, balance enDuiry and mini statementT 6omplete security is ensured because access to the account is only possible by entering a four digit personal identification number (P%<" kno#n only to the account holder$ 6ash #ithdra#al limit is up to 7s$2., ... per day$ Annual charges of A&M is 7s$29.A( per card$ Online Bankin! +P is currently offering #indo#(based online banking to its customers, #hich gives access to information on their accounts and the liability to act on the latest information received over the net$

9ockers %t is one of the utility services that +P provides to their customers for keeping 'e#ellery, important documents and other valuables$ De"and Dra,ts +P provides safe, speedy and reliable #ay to transfer money at vary reasonable rates$ Any person #hether an account holder of the bank or not, can purchase a ,emand ,raft *9

from a bank branch$ 9etters o, *redit +P is offering its business customers the #idest range of option in the area of money transfer$ +P-s letter of credit service is #ith competitive rates, security, and ease of transaction, +P >etter of credit is the best #ay to do the business transactions$ Pay Order +P provides transfer of money using different facilities$ %ts pay orders are a secure and easy #ay to move the money from one place to another$ &he charges for this service are e3tremely competitive$ Mail Trans,er Moves money safely and Duickly from +P Mail &ransfer service$ &he rates for this

service is Duiet impressive as compare to the market$ 'hort Ter" In&est"ent +P offers e3cellent rates of profit on all its short term investment accounts$ &he packages are starting from * months$ +P-s rates of profit are e3tremely attractive, along #ith the security and service only +P can provide$ A!ric%lt%ral Finance %t help farmers utili)e funds efficiently to further develop and achieve better production$ Provides farmers an integrated package of credit #ith supplies of essential inputs, technical kno#ledge, and supervision of farming *o""ercial Bankin! &he 6ommercial anking @roup has been formed to cater the needs of small I medium si)e customers for increasing ank-s business significantly #ith clear focus, ank-s profitability$ repositioning of resources and active marketing to improve

6ommercial anking #ill deal #ith customers having sales turnover and aggregate credit e3posure as per benchmarks prescribed in the 2 P-s Prudential 7egulations$

*:

&his @roup-s emphasis #ill be to meet necessary business needs of customers #hich are numerous as compared to 6% clients but their individual credit reDuirements are relatively much smaller$ %n vie# of this peculiar nature of this business segment that involves a higher turn over a much #ider net#ork is needed$ &he 2M4 #ill concentrate on rebuilding its set up #hich suits to its peculiar needs on all locations$ Corporate Banking &he +P 6orporate anking endeavors to market ne# clients and retain the e3isting

relationships and build market share through offering superior services, competitive pricing and #ide product range to valued corporate clients including Multi <ational 6ompanies$ +P #orks on some of the local markets largest and most comple3 transactions and infrastructure pro'ects of our corporate clients$ &he +P 6orporate banking @roup comprises a seasoned team to meet the demanding

service standards of large corporations$ &he group delivers a full range of high Duality advisory, financing and operational service solutions tailored to best meet our client-s needs$ e- *o"+etitors

Al araka %slamic ank >imited Allied ank >imited Askari 6ommercial ank >imited Atlas ank >imited ank(al(Habib >imited ank Alfalah >imited ank +f 0hyber ank +f Pun'ab ank %slami Pakistan >imited arclays P>6 ,a#ood %slamic ank Pakistan >imited ,ubai %slamic ank Pakistan >imited *5

4mirates @lobal %slamic ank >imited 1aysal ank >imited Habib ank >imited Habib Metropolatin ank Arif Habib ank 0ashf Microfinance ank F2 ank 0A2 ank Me))an ank >imited My ank ( olan bank" <ational ank of Pakistan <% ank >imited 7 2 (7oyal ank of 2cotland" 2amba ank (1ormally 6rescent 6ommercial ank >imited" 2ilk ank >imited 2oneri ank >imited 2tandard 6hartered ank &ameer Microfinance ank !nited ank >imited

<-

Or!ani.ational 'tr%ct%re a- Or!ani.ational Hierarchy *hart oard of directors

President

*/

6orporate head

6ommercial head

6onsumer head

7etail head

Head office

7egional office

ranch

*=

H#AD OFFICE

REGIONAL OFFICE

BRANCH

AREA OFFICE

MANAG ER

OPERATIOS DEPTT.

CREDIT DEPTT.

OPERATIONS MANAGER

RELATIONSHIP MANAGER SME

REMITTANC E OFFICER

RELATIONSHIP MANAGER CONSUMER

CLEARING OFFICER

ACOUNTS OFFICER

CASH DEPTT.

PAYMENT CASHIER

RECIEVERS CASHIER

UTILITY BILLS COLLECTION

8.

b- N%"ber o, #"+loyees: 6urrently 8... employees are #orking in bank of Pun'ab both genders$ /=G male and 11G #omen$
Estimated based on LinkedIn Data

c- Main O,,icesHead +ffice and the main branch of 7espectively$ +P is in @ulberg *, >ahore I 4gerton, >ahore

&he ank has been divided into seven regions 4ach consisting a number of branches$ 9ahore 3e!ion Faisialabad 3e!ion ;%/ran ala 3e!ion 3a al+indi 3e!ion Karachi4B%etta 3e!ion M%ltan 3e!ion Pesha ar 3e!ion

A number of online branches #orking under these regions$ Which are almost 252 in all over Pakistan$

d- Introd%ction o, all De+art"entsOP#3ATION' D#PA3TM#NT: +perations department manages all departments of bank e3cept credit department$ +perations Manager is responsible for all operations of cash department, remittance 81

department and clearing department$ +pening of ne# accounts, closing of )ero balance accounts, updating all operational records etc$ is done in operations department$ 3#MITTAN*# D#PA3TM#NT: 7emittance department transfers funds from one branch of bank to another branch of same bank$ &his is an important service #hich bank provides to its customers$ TAP#' OF 3#MITTAN*#': De"and Dra,t Pay"ent Order Mail Trans,er Tele!ra+hic Trans,er Online Trans,er D#MAND D3AFT 6DD8: (section /9(A of <egotiable %nstrument Act, 1//1$" ank ,raft is an order to pay money dra#n by one office of a bank upon another office of same bank outside the city for sum of money payable to order on demand$ %n &he ank of Pun'ab, ,, is used to transfer of funds from one branch of bank to another branch of same bank$ PAAM#NT O3D#3: Payment +rder is an order instrument payable to a certain person #hich is issued by a branch and dra#n on a same branch$ %n payment order, the dra#er and dra#ee are one and the same branch$ %n short, payment order is used to transfer of funds in same city from one office of bank to another office of same bank$ MAI9 T3AN'F#3: !nder such method, transfer of funds is made through dak$ !nder such transfer, one office of bank sends advice to another office of same bank for payment$ 2uch advice is called % 6A ( %<&47 7A<6H 674,%& A,;%64"$ 82

T#9#;3APHI* T3AN'F#3: %t deals #ith transfer of funds by telephone$ ON9IN# T3AN'F#3: %t is modern techniDue for transfer of funds$ &he modern concept of only banking has given it a ne# dimension through #hich money is transferred from one place to another #ithin no time, even one country to another country, it takes hardly a fe# minutes$ *9#A3IN; D#PA3TM#NT: WHAT I' *9#A3IN;D &he mechanism and system of obtaining the process of cheDues and other instruments deposited by the customer dra#n on other banks #ithin the cityAclearing net#ork$ TAP#' OF *9#A3IN;: In ard *learin! O%t ard *learin! *9#A3IN; D#PA3TM#NT: %n clearing department the cheDues of +P and other banks are presented for clearing through <%1&$ &he bank collects money on behalf of its customer and deposits it in its customer account$ A separate clearing register is maintained on daily basis to record all the transactions$

8*

Ty+es o, clearin!: 2ame day clearing %ntercity clearing %n #ard clearing +ut #ard clearing

'a"e day clearin!: %n same day clearing cheDues of other branches are presented by the account holder of the +P$ the bank clear those cheDues through <%1& on behalf of his customer$ All the process is completed #ith in a day$ 6heDue of more than 7s$9..,... is presented for clearing in same day$

Intercity clearin! %n intercity clearing cheDues of other cities are presented for clearing$ In ard clearin!: %n in#ard clearing the cheDues of +P is presented in other bank and it is received by the +P through <%1& for clearing$ O%t ard clearin!: %n out #ard clearing the cheDues of other banks are presented in the +P by its customer for clearing$ 3#MITT#N*# E BI99 FO3 *O99#*TION 6IN9AND8: 7emittance department perform the function of sent and receive of money$ 1ollo#ing instruments are used for this purpose$ *ash order or +ay"ent order:

88

&he branches do local fund transaction by mean of cash orders payment orders issued on behalf of the purchaser desirous of effecting payment in this #ay or by the branches for settling their obligations$ &he application for purchase of cash order by cash as #ell as by the cheDues$ 2eparate registers are maintained for all these transactions, #here send and receive of all these documents are recorded$

ON9IN# INT#3 B3AN*H T3AN'A*TION' P3O*#DU3#: Introd%ction: +nline inter branch transaction is a facility #hereby customers maintaining accounts in +nline branches #ould be able to operate their accounts from any of the online branches across the country$ &he online service is being called % 7(%nter alance enDuiry$ 6ash depositA#ithdra#al &ransfer of fund$ 2tatement of AA6 (displayAprint" ranch transaction$ 2pecifically, an online branch #ill offer the follo#ing transactions to account holders of other online branches?

%n addition, online branches #ill also be able to issue A&M 6ards to their o#n account holders$ A special option has been made available in the computer system in +nline ranches to accept transactions meant for another +nline ranch$ &he online transactions #ill only be accepted during fi3ed hours, presently the cutoff time is 19*. hours on #eekdays and 1*.. hours on 2aturdays$ A complete audit trial of all transactions posted remotely #ould be available both at the ,estination ranch and the +riginating ranch$ &he +riginating ranches must tick all the online transactions #ith the voucher Adocuments, as being done for local transactions$

89

DAA #ND: ,ay end is a document maintained by the bank$ %t contains the record of each day transaction$ 4very small to large transaction is recorded in it$ &he bank maintains this record in form of printout and sends it in a cassette to the head office$ &his is done on daily basis$ *A'H D#PA3TM#NT 6ash department deals #ith *ash 3ecei+ts *ash Pay"ents Utility Bills *ollection 6ash department is the backbone of the bank$ As all banking business is based on cash$ 6ash receipts include customer deposits, payments include cash #ithdra#als and utility bills include telephone, gas, electricity and other bills collection$ 9O*K#3F' D#PA3TM#NT: %t deals to safe the proceedings of customers$ >ocker is also called 2afe ,eposit ;ault$ 6urrently +P is providing 43tra %nsurance cover to customers$ 6ustomer is fully responsible for hisAher locker-s proceeds$ ank is only custodian for these proceedings$

8:

*3#DIT D#PA3TM#NT: %t deals #ith *o""ercial loan *ons%"er loan 'M# loan e- *o""ents on Or!ani.ation 'tr%ct%re%n +P the flo# of designations and po#er is #ell arranged and from top to bottom$ =- P9AN OF INT#3N'HIP P3O;3AM

Introd%ction o, the Branch here I did "y Internshi+:

&he ank of Pun'ab &oba &ek 2ing ranch is the oldest branch in the district$ &he ank, Habib ank, 1aisal ank, Al ranch is situated in the most competitive and commercial area of the city (&oba &ek 2ing" Machli a)ar #here other banks like Alflah Habib ank, <ational ank and Allied ank , F2 ank (>&," are situated so creating a rivalry among competitors$ %ts ma'or customers are @ovt$ and semi govt$ institutions like &4;&, vocational institutes, schools and colleges etc$ %n the said branch is consist of / clerical and 8 non clerical staff &here the 8 branches in the ,istrict and the ank of Pun'ab &oba &ek 2ingh (..2:" is on the 1st in respect of its investment more than :.. million$ %n the region it is on the 8 th number$ At present A&M has been installed during the period of my internship and this provide an advantage to the branch$

'TA3TIN; AND #NDIN; DAT#' OF INT#3N'HIP.1(5(2.1* to =(./(2.1* (inclusiveUUU both" NAM# OF D#PA3TM#NT' WH#3# I ;OT T3AININ; 4 DU3ATION OF T3AININ;:

85

,eposit department, 1oreign remittance ,epartment$ &he duration of my internship #as 5 #eeks$

G- T3AININ; P3O;3AM a- Detailed Descri+tion o, the o+erations4acti&ities +er,or"ed in the BOP shah r%kn e ala" "%ltan Brach. OP#3ATION' D#PA3TM#NT: % have #orked in ,eposit department #hich is under the control of operation department or sub department of operation department$ +perations department manages all departments of bank e3cept credit department$ +perations Manager is responsible for all operations of cash department, remittance department and clearing department$ +pening of ne# accounts, closing of )ero balance accounts, updating all operational records etc$ is done in operations department$ eside these foreign payments to customers via online transactions is also the function of deposit department$ 1or this purpose <%6 of the customer is verified on <A,7A #eb site ###$verisys$com to make sure that payment is being made to the right person$ &he branch credits the Head +ffice account #hen makes online payment to customer$ &hey people #orking abroad send money to their home viva e3press money #hich is deposited in bank of Pun'ab head office so H+ account debited #hile making payment H+ account credited$ %n closing H+ credits all the branch accounts online #ith respective amount of payments$ %ssuing the cheDue books and making entries on computers for the authentication of cheDue books, filling deposit slips and cheDues all are the functions of operation department$

b- Work4Assi!n"ents done by "e d%rin! Internshi+ % have done my internship at &he ank of Pun'ab, &oba &ek 2ingh ranch$ &here are four departments in the branch, and % #orked as an assistant in that branch$ 1or the first 8 #eeks % #orked in deposit department under the supervision of Mr$ 0amran (+@ *", 8/

#here % have to perform follo#ing tasks? % did the duty of +pening <e# Accounts$ Providing help and assistance to ne#ly come customers$ As % have the kno#ledge of M2 +ffice so freDuently typed documents in Ms Word and 43cel as demanded by the manager$ % also did the duty of taking signatures from customers #ho came to open ne# accounts$ 4ntering information in 0C6 (kno# your customer" forms #ell as on the computer #hich #as allo#ed to me for that 'ob$ % also verified the <%6 of the customers on the ###$verysis$com$pk , and <A,7A charges 7s$*9 per verification$ 2canning and arranging specimen signature cards$ %nform customer of essential conditions under #hich the account #ill be operated$ 1illing the deposit slips and cheDues for many customers$

I''UIN; OF *H#BU# BOOK' &hen another task for me #as Oissuing of cheDue booksP$ %t is one of the most interesting #orks that % have learnt in the bank$ 6heDue books should be issued only after all the formalities of the account opening forms, #hich have been checked by the branch manager$ Maintaining ,ispatch register and %n#ard Mailing register #as also included in duties assigned to me$ % also used to help different employees in their #ork$ My #ork timings #ere from =am to 9pm, si3 days in a #eek$

8=

6.

'tr%ct%re o, the Finance De+art"ent

a- De+art"ental Hierarchy&he management of +P comprises of t#o types 6hairman-s 2ecretariat President 2ecretariat$ 6hairman-s secretariat deals #ith finance division$ Mr <adeem Amir is general manager of finance division of mentioned secretariat$ &he financial analyst related to +P matters of chairman-s secretariat is Mr$ Masroor Jaigham$ &he manager of finance division is Mr$ Muhammad %'a) A)i)$ Mr$ Muhammad Arshad is the head of finance division of +P$ &he ,irector of 1inancial 2ervices leads the ,epartment and is responsible for the management and the smooth running of all financial aspects #ithin the authority &he 1inance ,epartment is divided into four main divisions

FIANA*# D#PA3TM#NT

FINA*IA9 '#30I*#'

AUDIT E IN'U3AN*#

30#N#U'

3#*3UITM#NT

b- N%"bers o, e"+loyees orkin! in the Finance De+art"ent<umbers of employee #orking in finance department are about *2G of the total employees$ c- Finance and acco%ntin! o+erations Making investment in potential pro'ects, making decisions to undertake the pro'ect #ith positive cash flo#s and allocation of funds and resources are the functionsA 9.

operations of finance$ &he 1inance ,epartment provides a range of financial support services$ &hese services include the management of the 6ouncilKs finances, financial reporting, budgeting, accounting, financial advice, ledger and accounts maintenance, financial systems, treasury management and ste#ardship matters$ &he service is also responsible for all enefits #ork, the collection of sundry debts, %ncome 2ervices and the collection of 6ouncil &a3 and services provided$ 2imilarly preparing income statements, balance sheets, cash flo#s, calculating mark up interest rates, employee-s salary accounts, passing debit and credit entries in ledger, income and e3penditure accounts are the accounting operation for the said organi)ation$ &he finance department deals in authenticity of cheDues, proper utili)ation of funds, preparation of day end statements, online banking, collection of mails, opening I closing account of customers I companies etc$ usiness 7ates$ All aspects of insurance and risk management advice, together #ith the payment of suppliers complete the range of

H F%nctions o, Finance De+art"enta8 Acco%ntin! 'yste" o, the or!ani.ation +P maintains its accounts on the basis of @AAP (general acceptable accounting principals"$ &he ank maintains its accounts according the companies ordinance 1=/8$ All account officers #ork under the operation manager in operation department, and submit daily, #eekly , monthly and annual statements to the head office or as demanded by the Head +ffice$ &he mission of the Accounting ,epartment is to provide accounting services and financial support to the +P$ &he ,epartment of Accounting consists of si3 divisions$ 4ach division listed belo# performs specific functions that enable the department to provide accounting services$ 91

 Acco%ntin!

Ad"inistration

+verall administration of the department including policies and procedures, insuring internal control, budgetary responsibility, and personnel$ Payroll 7esponsible for the proper payments and maintaining necessary records for all !& 2outh#estern Medical 6enter employees$ *ash general cashier operations$ ;eneral Acco%ntin! 6onsists of Accounts Payable, receivables etc$ 3e+orts 7esponsible for preparing reconciliation and reports for use in analy)ing various financial functions of the !niversity$ Acco%ntin! codes etc$ Accounting departments typically handle a variety of important tasks$ 2uch tasks often include invoicing customers, accounts receivable monitoring and collections, account reconciliations, payables processing, consolidation of multiple entities under common o#nership, budgeting, periodic financial reporting as #ell as financial analysis$ Also common are setting up adeDuate internal controls for all business processes (to prevent theftAmisappropriation of assets", handling e3ternal audits and dealing #ith banks in order to obtain financing$ &a3es are sometime handled by accounting departments in house, but this #ork is often contracted to outside ta3 accountants$ b8 Finace syste" o, the or!ani.ation 1inance is the life blood of any organi)ation$ %t includes the generation and circulation of cash$ &he ank of Pun'ab carries its financial matter on the basis of company-s ordinace 1=/8$$ &he finance department deals in authenticity of cheDues, proper utili)ation of 92 O+erations 7esponsible for the vouchers, %,7Ks, reconciliation of accounts, statements, ob'ect Mana!e"ent 7esponsible for the receipt and investment of monies, customer relationships and

funds, preparation of day end statements, online banking, collection of mails, opening I closing account of customers I companies etc$ %n finance system of +P follo#ing functions are performedS 1inancial 2ervices Provides a full range of mainstream accounting and financial services and to service managers, including the production of the statement of accounts and annual budget, financial reporting, financial advice, ledger and accounts maintenance, financial systems, treasury management and ste#ardship matters$ 7evenues Audit and %nsurance %nternal Audit services Procurement &he Procurement section provides advice on procurement and contractual matters for all departments$ $

c8 Use o, electronic data in decision "akin! +P ma3imi)ing profitability and stoke holder-s value by increasing #orkers efficiency$ &his has done by decreasing operating e3penses by using the technological eDuipments like computers$ 4lectronic data gives e3act values and figures #hich top level management reDuired$ ecause of electronic data they came across to kno# those minute things #hich impact a lot on final place$ &hrough this they can measure e3act profit and loss accounts, assets and liabilities up to a branch level from #here they can decide #hich should be kept and #hich should not$ &hrough this top level management is able to decide #hich product should be taken into course for further level or #hich should stop$ 4lectronic data make management able to take decision at any point of time$ &he system has not totally shifted on computer$ Manual procedure is still there hence computer facility is not fully availed$ &here should be a system at each counter for Duick processing$ 9*

d- 'o%rces o, F%nds &he ma'or sources of funds are? P%blic 'o%rce

As the largest regional bank of Pakistan according to asset base #ith speciali)ed in Agriculture has a large deposits #ith /.G from the rural areas of the Pun'ab$ &he anks ma'or source of funds is from the Public$ Money Market

1igurative e3pression for the informal net#ork of dealers and investors over #hich short( term debt securities are purchased and sold$ Money market securities generally are highly liDuid securities that mature in less than one year, typically in less than ninety days$ *or+orate treas%ries and ;o&ern"ent Instit%tions

6orporate sector is one of the ma'or sources of funds in all types of anking$ All ma'or organi)ations, financial institutions and government I private organi)ations are the ma'or sources of the funds e$g$, WAP,A$

e- Allocation o, F%nds
+P-s funds are allocated to the follo#ing departments$ &he banks ma'or focus is on short term financing$ Ma'or allocation of funds is on these divisions$ 9on! Ter" Financin! >ong term financing includes tenure more than one year$ 'hort Ter" Financin! 2hort term financing includes period less than one year$ &he banks ma'or focus is on short term financing$ 1rom the above it is further sub distributed to 1$ 2M4 ,ivision 2$ Agriculture financing 98

*$ 6onsumer financing 8$ 6orporate financing &he distributions of funds to these departments are anks internal matter and they avoid to disclose$ &hrough 1inancial 2tatements it is only possible to analy)e long term and short term financing$ A!ric%lt%re ,inancin! &he bank provides adeDuate and timely financial assistance to the farmers to improve production potential of agriculture sector$ %nsurance of leased assets, animals, crops and life assurance of borro#ers are all source of money for the bank$ #5Bankin! &he bank has a centrali)ed database that is #eb(enabled$ All the services that the bank has permitted on the internet are displayed in menu$ Any service can be selected and further interaction is dictated by the nature of service$ Utility bills &he bank also makes possible the payment of electricity, gas and telephone bills for its customers charging some commission on each payment$ 9ockers 6ommission charged on lockers provided by bank for customers, is also a source of inflo# for the bank$ *ons%"er ,inancin! Personal 1inance, mortgage finance, business finance, smart cash, auto financing and travelers cheDues are all sources of funds for the bank$ &he bank finances all these loans and facilities on competitive mark up rates$ 2- *ritical Analysis (&he amounts have been presented in millions of Pakistan rupees$" 'WOT Analysis 2W+& analysis is one of the most important steps in formulating strategy using the organi)ation mission as a conte3tS managers assess internal strengths distinctive 99

competencies and #eakness and e3ternal opportunities and threats$ &he goal is to then develop good strategies and e3ploit opportunities and strengths neutrali)e threats and avoid #eaknesses$ 2W+& analysis is an acronym that stands for strengths, #eakness, opportunities, and threats 2W+& analysis is careful evaluation of an organi)ation-s internal strengths and #eakness as #ell as its environment opportunities and threats$ O2W+& analysis is a situational #hich includes strengths, #eaknesses, opportunities and threats that affect organi)ational performance$P

%n 2W+& analysis the best strategies accomplish an organi)ation-s mission by?

1$ 43ploiting an organi)ations opportunities and strength$ 2$ <eutrali)ing it threats$ *$ Avoiding or correcting its #eakness$

INT#3NA9 A''#''M#NT: STRENGTH: &he ank of Pun'ab has lack of staff members than the reDuired staff level but its performance level is high as compared #ith its staff level$ As a result of the compassionate and personali)ed services of the officers, the clients- perception for +P is very high$ &hey have trust and feel themselves to be secure #hile dealing #ith +P$ +P has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank$ +ne employee in the bank performs many duties$ All staff members are #ell educated i$e$ they hold masters degree e$g$ M$com, M A etc &here is also improvement in corporate loans and consumer loans$ 9:

 All staff members treat their account holdersAgeneral public #ith #ell behavior$ Pun'ab bank &$&$2ingh ranch is business #ise best branch$ ank has higher level of deposits if #e compare #ith other banks$ ,eposit #ise its number is :th in Pakistani %ndustry$ As it is business #ise busy branch so its profit after ta3 has become 15G higher than previous year$ %n Pun'ab bank, there is computeri)ed system so performance automatically has been increased having better results$ 6ompliance all risk mitigation policies and procedures$ &he bank-s management reali)es the necessity of e3istence of effective internal controls to ensure smooth operations in current technical and s#ift business environment$ &he management feels confident that all internal controls procedures are adeDuate to effectively and efficiently meet the operational reDuirements$ 6omprehensive risk management policies for credit, operational and market risks are being implemented$ <ecessary steps have been taken to ensure effective monitoring of risks and to observe compliance all risk mitigation policies and procedures$ &he ank officers of +P are considered as one of the most able professionals in the banking #orld (some belong to 66%"$ Ho#ever, they have added some local flavor in accordance #ith their targeted segmented$ %n my observation that they interact #ith their clients as if they are their personal friends and discuss about their problems as their o#n$ @ood security system, diversification of investments, foreign reserves$ <ot e3cellent but good facilities are given to employees$

W#AKN#'': >evel of bad debts is improving at higher level$ &here is yet no A&M machine in Pun'ab bank &$&$2ingh ranch$ &here is also lack of #orkplace in the ank$ 95

 >ack of proper internal controls is one of the ma'or #eakness of +P$ %t is also pointed by the auditor in his revie#$ +P has formuli)ed 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$ % observed during my internship that some of the employees #ere burdened #ith over #ork$ 2o % think that the #ork should be distributed according to their post and capabilities$ As each staff member performs many duties in one time so this capture e3tra time #hich can slo#s do#n the performance$ ,ue to lack of #orkplace, staff members as #ell as the general public face disturbance in the bank$
Biased selection of employees.

#IT#3NA9 A''#''M#NT:

ENVIRONMENTAL OPPORTUNITY:
&he ank of Pun'ab compete its competitors by encouraging agriculture loans$ 2o in such a #ay 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$ %nformation technology is the future of this dynamic #orld$ &herefore +P should emphasi)e much on %&, especially on 4( anking$ ank can design a universal account like other foreign banks, to enhance online facilities. ank also encourages industrial sector$ 2o in such a #ay most of industrialists deal #ith Pun'ab ank as a result ank maintains large si)e of deposits$

Ho#ever the year 2.1* #ill prove to be another challenging year for the bank #ith scattered opportunities and tough competition$ ,iversification, innovation and mission driven approach are the key to success$

9/

Management of the bank is committed to continue its efforts for outstanding performance$ %mprovement in stakeholders- value shall be ensured through progressive but cautious business e3pansion #ith strategic branch net#ork e3tension and introduction of innovative products in all areas of business$ +P has introduced a number of financial schemes including special V,eposit Accounts-$ &hese accounts have their uniDue features$ ,uring the last three years, +P deposits have been increasing N 8.G, #hich is a very healthy sign$ &herefore, #ith the commencement of ne# schemes there can even be a greater increase in its deposits$

@reat opportunity of starting %slamic banking system$

ENVIRONMENTAL THREAT:
6urrently &he private bank$ +P is facing a strong competition by its competitors, usiness of all these anks are gro#ing at very high pace$ ,espite the difficult circumstances that confronted the banking sector in particular and the country in general, +P has been still highly profitable$ ut, the facts can-t be denied and there might be an adverse impact of such situation$ %n recent Hameesh 0han (Previous President 1raud" is an e3ample$ >o# security, economic and political instability$ ank of Pun'ab is facing ma'or threat in Pakistan that is private

businessmen do not prefer the ank of Pun'ab due to the standard as compare to

*ON*9U'ION While making an analysis of &he ank of Pun'ab, as a financial institution, #e find that this institution came into e3istence in pursuance of ank of Pun'ab Act, 1=/= passed in the legislative Assembly of Province of Pun'ab$ %n the short span of about 19 years, it becomes the fifth largest bank in the county #ith 252 ranches net #ork all over the 9=

country$ % have suggested some recommendations in the light of ratios and 2W+& analysis$ +P has negative #orking capital in all the three years so it is essential to increase current assets and reduce investment in fi3ed assets$ While having an opportunity to go for internship at the branch, % have observed the follo#ing reservations?( &he ranch is housed in small a banking premises #hich does not suffice the ank$ y having a reDuirements of visiting clientele as #ell as corporate clients of the

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 reDuired number of P6s etc has not been provided resultantly, the staff has to #ait their turn to accomplish their daily 'ob$ 1inally there is a immediate need for A&M Machine at present era$

3#*OMM#NDATON' Internal *ontrols &he ma'or and the most important fla# in the +P is lack of internal controls and inter communication bet#een different branches of the bank$ As far as financial aspect is concerned there is no proper system is configured that-s #hy there is al#ays a risk of big frauds #ith in the bank$ % during my internship also pointed out that point but no one bothered$ &o me the bank should install some proper resource planning and controlling systems like other banks do i$e$, oracle financials etc$ Pro,essional Trainin! +P staff lacks professionalism$ &hey lack the necessary training to do the 'ob efficiently and properly$ Although staff colleges are in all ma'or cities of the Pun'ab but they are not performing #ell$ 1or this purpose these staff colleges should be reorgani)ed and their syllabus should be made in such a #ay #hich can help the employee understand the ever( changing global economic scenario$ anking council of Pakistan should also initiate some programs to eDuip the staff #ith much needed professional training$ Dele!ation o, A%thority :.

4mployees of the bank should be given a task and authority and they should be asked for their responsibility$ &he sense responsibility in employees mind is one of the most important factors in the success of any organi)ation$ Per,or"ance A++raisal ,uring %nternship % felt that there is no or very less appraisal of any ones cool performance$ &he manager should strictly monitor the performance of every staff member$ All of them should be a#arded according to their performance and result in the shape of bonuses to motivated and incite them to #ork more efficiently$ To O&er *o"e Proble" o, '+ace and F%rnit%re %n the critical analysis this, problem is discussed$ &o overcome this problem it is suggested that a special section should be made inside the branch$ Which should only handle the treasury function, salaries and pensions of federal personnel or the bank should do these functions in the evening time$ Also management should purchase more furniture and arrange them in such a #ay #hich provides ma3imum space and convenient especially in deposit department and there should also be convenient sitting place for customers$ Trans,er &ransfer is not properly carried out$ 2ome of the employees are continually serving at the same post$ &hey are simply rotated at the same branch$ &herefore it is recommended that evenly rotation of every employee should take place after every three years in different braches of the bank$ *han!es in Policies &here should not be any abrupt policies change by the upper management, as this practice hurts the customer confidences in the bank$ @overnment should make long(term policies Need o, B%ali,ied 'ta,, 7eDuired, Dualified staff should be provided to branch in order to improve the functioning of the branch$ 4specially a telephone operator should be appointed$ Utility Bill *har!es ank gets 7s$ 2 to * to processes a utility bill, and it is very tire, tough and hard 'ob despite this #orking resulting in a loss to then 7s * to9 per transaction$ &hese charges

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should be increased to 72 1. per bill to enable the branch to cover their handling costs and make some profit$ 9ink ith the Head B%arter 1.. ma'or branches of +P should established a direct link #ith the, head Duarter in >ahore, through %nternet or %ntranet$ &his #ill make the functions and decision making of the management easier and convenient$ &hough management has a plan to connect all branches via W%MAB technology$ &his #ould really bring great future aspect$ *redit *ard +P should start its operation in credit card$ &hese cards are very helpful for the ordinary customer in general and the business people in particular$ &o make it mores secure and to eliminate the misuse of it, the management is reDuired to keep proper security against the card$ *lean 9oans 6lean loan or clean overdraft is the credit facility e3tended to the customers to the customers #ithout any security$ &hese types of small term loans should not be e3tended to anybody, because sometime these loans are provided to blue(eyed people of the management and they become a part of bad debts$ *ash Financin! %n this mode of financing the amount of credit not utili)ed by the borro#er is remained ta3(free$ %t is recommended that a small amount of interest should be charged on this amount as #ell because the bank gas kept(aside the amount for that borro#er and can not advance it any#here$ Decreasin! Ad"inistrati&e #$+enses ank should decrease their administrative e3penses$ &his #as 7s$ 2$*. billion in the year 2..5$ &hat can be done by lying off the surplus pool of employee #ith golden hand shakes scheme$ &he branches that are not much used could also be closed$ &hat #ill give positive results in the future$ 'ho%ld be A!!ressi&e in *redit Policy As mentioned earlier, +P is very conservative in advances and loans policy$ %t reduces the investment opportunities$ Also loans should be given to the small businessmen and

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the other businesses on large scale like in agriculture sector at the lo# mark(up rate$ %t should adopt fle3ible credit policy #hile giving credit to the agriculture sector$ Technolo!ical Ad&ance"ent % #ould like to suggest that at least all the main branches of +P should be fully computeri)ed in order to e3pedite the dealing process among bankers and their customers$ 4very department should be provided a computer #ith adeDuate training (especially Advances, ,eposits and 1oreign 43change departments"$ ,aily records should be entered directly into these computers, (instead entering the overall daily transactions after the banking hours"$ %t #ill not only reduce transaction time, #ill increase accuracy but #ill also be efficient as #ell$ <ot only it #ill be economical but #ill also reduce the e3tra burden of #ork of the bank$ %t #ill also help in reducing the use of e3cessive paper #ork$ 'ta,, 3elationshi+ @ood relationship among staff member leads to the peak performances in any organi)ation$ % observed that the staff relationship #as normal other #ise but some time % noticed that there e3ists little conformity among the staff members$ Another syndrome from #hich the staff suffered #as that all of them considered themselves more important than others$ 2ome of the officers used to say that if % am absent for a day the bank #ould stop #orking$ 2o this sort of attitude is not good because it mars bank image and 'uniors#illingness learn and #ork hard and in the end #ill hurt the #hole team$ I"+ro+er Distrib%tion o, Work Proper distribution of #ork leads to success in every organi)ation$ Proper distribution of #ork prevents the employee from over and under #ork situation$ 2o for a smooth running of an organi)ation proper distribution of #ork is the hint to be follo#ed$ ,uring my internship % observed that there #as no proper distribution of #ork in the bank$ % sa# that some of the employee #orked like ants other sat idle staring here and there$ 2o this created a lot of over #ork situation for #hile rela3ation for other$ Fa&oritis" and Ne+otis" %n the Main branch during my internship % sa# that #hen some of the employees are transfer to other places, due to their relation #ith influential people and #ith top

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management they can cancel their transfer in fe# #eeks, #hen they are unsatisfied at that place$ 2o % suggest that in the organi)ation there should be no favoritism, nepotism and politics and their transfer and promotion should be made on merit and according to the rules and regulations of the bank and provided favorable environment to the employee to sho# their performances$ Inter De+art"ental Trans,er % #atched during my internship that, there employees #ho have #orked on one seat for many a year$ %t can have negative effects motivation of employee #ho is hard #orking and intelligent$ &ake the e3ample of advances section$ %n advance section if the employee is transfer after si3th month or seven month, ho# can he be able to sho# his performances and ho# can he be able to kno# the bank customer in a short period of time$ Marketin! Policy &he branch should adopt various marketing strategy and promotion strategy to promote the bank and its product$ &he most important in my opinion is personal marketingS it is the most effective of all #hen you think in term of branch level$ ut on the #hole organi)ation level, they should arrange the seminar #ith in the bank and outside the bank$ &hey should introduce various pri)ing schemes 'ust like Allied ank$ 0aramad 2cheme, ank Al(1alah (monthly income earning scheme" and various others$ &hey should do more advertising through ne#spaper and media and through channel of personal contacts$ *o"+laints o, *%sto"er &here should be an information desk to provide the information and to receive the complaints of the customer in the bank$ &here is no complaint bo3 available in the branch and not any person appointed to hear the complaints$ 4very person cannot go to the manager for the complaint because most of the people are hesitant$ 2o % suggest management to install a compliant bo3 in the branch, and recruit a

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special person for that guidance of the customer #hen they are unable to manage some difficulties in banking matters$ Or!ani.ational *o""it"ent %t is suggested that employees #orking on daily #ages basis should be given some benefits, #hich the other employees are getting$ &heir salaries must increase according to efficiency, performance and service this #ill increase there commitment to the organi)ation$ *redit Monitorin! &he credit department of the bank should carry out vigilant credit monitoring$ &hey should ensure the proper payment of installments and the mark(up by the borro#er$ &he staff members #ho have done all the paper #ork of the loan e3tension should perform the monitoring, as heAshe #ill be having more information about the borro#er$ #$tended Bankin! Ho%rs &he banking hours may be e3tended up to si3, as being practiced by ! > opposite to it$ 2ome of the business community due to la# and order situation are no# reluctant to keep the fund in their premises and #ould #ant to depart #ith it$ &herefore, Main ranch may e3tend the night banking to cater to demand of this business community$ &he branch could also be opened to cater the reDuirements of this business community Ho%sin! and Ho%se Hold ;oods 9oans ank should initiate these loans because most of bank-s customers are middle class and they cannot afford to buy house or household goods at once by their o#n$

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A&oidin! Bad Debts @reat care should be taking #hile e3tending the loan$ >oans should be a#arded against reasonable securities, #here market value should be eDual to the loan granted$ Policies should be crafted in a #ay to ensure that no loan is e3tended on political pressure$ 2 P regulation for loan approval should be strictly follo#ed$ According to #hich the current ration of borro#er-s business must be 1?1 and the debt to eDuity ratio should be :.?8., means the liDuidity position of business should be healthy$ structure$ ut unfortunately op has unsatisfactory current ratio I uses about =/ G eDuity in its capital

3e,erence and 'o%rces Used

Written:5 o Annual 7eport o 7ecords o %nternet Web 'ites###$bop$org$$com ###$bop$org$pk ###$google$com

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