Bank of Punjab

The Bank of Punjab
THE BANK OF PUNJAB MAIN BRANCH

LAHORE
Internship Report
ON BUSINESS PRACTICES AT THE BANK OF PUNJAB
SUBMITTED TO:
SIR SUFAYAN SANDU
SUBMITTED BY:
MUHAMMAD QASIM MUNAWAR
COMSATS Institute of Information Technology Lahore
The Bank of Punjab
ACKNOWLEDGEMENT
I am really pleased here to acknowledge the sheer efforts and extreme of numerous
people, those who have provided me their relentless service in the completion of my
internship report on Business practices at The Bank of Punjab.
I would like to express my gratitude to my advisors in The Bank of Punjab who support
me to under stand the working in the bank, during my internship. They really helped me
a lot to gain practical knowledge about general banking and corporate banking. I am
also grateful to Mr. Mazhar (Manager) and all my supervisors during internship period.
Without their guidance, this exercise of internship would not have resulted in a success.
Secondly I would like to thank my advisor Madam Ayesha for her assistance and
inspiring attitude. I am highly obliged to my respectable advisor and state my gratitude
for her valued guidance and her concern about my internship.
ADP (Accounting & Finance)
The Bank of Punjab
DEDICATION
I dedicate this report to my loving

parents without their guidance I
would have gone astray.
The Bank of Punjab
The Bank of Punjab
Table of Content
EXECUTIVE SUMMARY............................................................................................5
INTRODUCTION TO THE BANK OF PUNJAB ...................................................6
HISTORY......................................................................................................................... 6
VISION............................................................................................................................. 6
MISSION STATEMENT....................................................................................................7
BANK PROFILE...........................................................................................................8
BOARD OF THE DIRECTORS...........................................................................................8
MANAGEMENT............................................................................................................. 10
ORGANIZTIONAL CHART......................................................................................14
BRANCH HIERARCHY....................................................................................................17
COMPARATIVE ANALYSIS....................................................................................18
BANKING INDUSTRY............................................................................................................18
COMPARISON WITH OTHER BANKS......................................................................................18
CURRENT FINANCIAL POSITION OF THE BANK OF PUNJAB...................................................26
SIX YEAR AT GLANCE............................................................................................30

BUSINESS PROCESS ANALYSIS.......................................................................32
1.
2.
3.
4.
5.
6.
ATM Facility.......................................................................................................32
Online banking..................................................................................................34
Consumer Financing.........................................................................................35
Agriculture Financing........................................................................................49
Corporate Financing..........................................................................................50
Trade Services..................................................................................................50
OBECTIVES OF INTERNSHIP.......................................................................................54
LEARNING AS A STUDENT INTERN..................................................................56

DUTIES..............................................................................................................................56
NEW KNOWLEDGE ACQUIRED.............................................................................................57
SWOT ANALYSIS...........................................................................................................63
RECOMMENDATIONS..................................................................................................66
CONCLUSION............................................................................................................... 66
BIBLIOGRAPHY..............................................................................................................67
GLOSSARY.................................................................................................................... 68
APPENDIX......................................................................................................................71
The Bank of Punjab
E X E C U T I V E S U M M ARY
This report is about The Bank of Punjab, its history, and the functions of the bank.
This report contains detail about what I have learned in my eight-week internship in
The Bank of Punjab. It starts with the short history and background and brief
introduction about the management of The Bank of Punjab. The vision of the bank
along with its mission and existing status has also been discussed. This report
contains detail about business practices in The Bank of Punjab.
The purpose of this exercise was to learn while working in the practical field.
Specially, the knowledge related to the General Banking, foreign exchange and
advances. It has really helped me observe to what extent the bookish knowledge is
being practiced in real field.
This report contains the Comparison of other banks with the bank of Punjab, current
financial position of the bank, the business process of the bank and all my learning,
during the internship period.
ADP (Accounting & Finance)
The Bank of Punjab
I n t r o d u c t i o n t o T h e B a n k o f Pu n j ab
The Bank of Punjab is working as a scheduled commercial bank with its network of 254
branches at all major business centers in the country. M/S PACRA has awarded the
Bank with the credit rating AA- for Long term and A1+ for Short term, based on its
financial results for the year ended as on 31st December 2004. The Bank provides all
types of banking services such as Deposit in Local Currency, Client Deposit in Foreign
Currency, Remittances, and Advances to Business, Trade, Industry and Agriculture. The
Bank of Punjab has indeed entered a new era of science to the nation under experience
and professional hands of its management. The Bank of Punjab plays a vital role in the
national economy through mobilization of hitherto untapped local resources, promoting
savings and providing funds for investments. Attractive rates of profit on all types of
deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange
business such as Imports, Exports and Remittances, Financing, Trade and Industry for
working capital requirements and money market operations are some facilities being
provided by the Bank. The lending policy of Bank is not only cautious and constructive
but also based on principles of prudent lending with maximum emphasis on security. As
agriculture is considered as backbone of our economy the Bank of Punjab has
introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.
HISTORY
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. It is principally engaged in commercial banking and
related services with its registered office at 7-Egerton-road Lahore.
VISION
To b e c u s t o m e r f o c u s e d b a n k w i t h s e r v i c e e x c e l l e n c e
The Bank of Punjab
MISSION STATEMENT
To e x c e e d t h e e x p e c t a t i o n s o f o u r s t a k e h o l d e r s b y l e v e r a g i n g o u r
r e l a t i o n s h i p w i t h t h e G o v e r n m e n t o f P u n j a b a n d d e l i v e r i n g a complete
range of professional solutions with a focus on programmed driven products & services
in the Agriculture and Middle Tier Markets through a motivated team.
O U R VAL U E S
Our Customers
as Our first priority
Profitability
for the prosperity of our stakeholder

that allows us to constantly, improve
and succeed
Corporate social
to Enrich the Lives of community where
responsibility
we operate
Recognition and
for talented and high performing
reward
employees
Excellence
in every thing we do
Integrity
in all our dealing
Respect
for our customer and each other
The Bank of Punjab
Bank Profile
BOARD OF The DIRECTORS
M r. S h a h z a d H a s s a n P e r v e z
Chairman
A Serving Grade-22 Govt. Officer, having wide management &
administrative experience. Last assignment Secretary Ministry of
Science & Technology Government of Pakistan.
M r. H a m e s h K h a n
President
Professional Banker. MBA from USA.
M r. S a l m a n S i d d i q u e
Director
Serving as Secretary Finance - Government of Punjab
M r. S i k a n d a r M u s t a f a K h a n
Director
An engineer by profession
E x e c u t i v e M i l l a t Tr a c t o r s L i m i t e d .
Chairman
&
Chief
The Bank of Punjab
10
Mian Muhammad Latif

Director
A prominent Industrialist- Chenab Group.
S y e d S a l m a n Al i S h a h
Director
An Economist by profession holding PhD (finance) from
K e l l e y S c h o o l o f B u s i n e s s Ad m i n i s t r a t i o n , I n d i a n a
U n i v e r s i t y, U S A .
M r. S h e h z a d Al i M a l i k
Director
A leading Industrialist
Companies.
from
the
Guard
Group
M r. G o h a r E j a z
Director
Chief Executive Ejaz Group of Companies.
M r. Q a i s a r Z u l f a q a r K h a n
Director
A renowned agriculturist. Graduate from Cambridge.
M r. J a h a n g i r S i d d i q u i
of
The Bank of Punjab

Director
A p r o m i n e n t I n v e s t m e n t Ad v i s o r.
MANAGEMENT
President Secretariat
M r. H a m e s h K h a n
President
M r s . An j u m Am i r
Principal Staff Officer
I n f o r m a t i o n Tec h n o l o g y D i v i s i o n
M r. An i s I q b a l
E . V.P. / G e n e r a l M a n a g e r
M r. Ab d u l R a s h i d K h a n S . V.P. / I n - c h a r g e
Ad m i n i s t r a t i o n D i v i s i o n
M r. Aa m i r I f t i k h a r Ah m e d G e n e r a l M a n a g e r
M r. R i a z Ak h t a r
E.O.C. / Chief Manager
Operation Division
M r. J a v e d Ah m e d
Khawaja
M r. At h a r Az i z D o g a r
M r. S a j i d Ar i f N o m a n i
Finance Division
M r. N a d e e m Am i r
M r. R a s h i d M e h b o o b
M r. N a d e e m Am i r
E . V.P. / G e n e r a l M a n a g e r
O.O.C. / Chief Manager
E.O.C. (Consultant)
Officiating General Manager

F i n a n c i a l An a l y s t
A . V.P. / C h i e f M a n a g e r
I n t e r n a t i o n a l & Tr e a s u r y D i v i s i o n
M r. M u h a m m a d S a l i m
E.O.C. / General Manager
Mirza
M r. B a b a r S a e e d K h a n
A . V.P. / M a n a g e r ( I n t e r n a t i o n a l D i v i s i o n )
Mrs. Saba Farrukh
A . V.P / C h i e f D e a l e r
11
The Bank of Punjab
12
Au d i t & I n s p e c t i o n D i v i s i o n
M r. M u h a m m a d H a n i f
Head
M r. R a z a S a e e d
V.P
Credit Risk M anagement Division

M r. Az i z U l H a m e e d
E.O.C. / Country Risk Manager
M r. Ab i d M a h m o o d
V.P
M r. H a f e e z U d D i n
V.P
M r. Tar i q J a v e d B u t t
V.P
S p e c i a l As s e t M a n a g e m e n t D i v i s i o n
M r. S h a h e e n N a z a r
E . V.P / G e n e r a l M a n a g e r
Qureshi
M r. B i l a l H u s n a i n
E.O.C
Chandan
Liability & Consumer Products Development Division

M r. M a h m o o d S a d i q
Khan
M r. H a j i M u h a m m a d
V.P
Aslam
C o m m e r c i a l As s e t D e v e l o p m e n t & M a r k e t i n g D i v i s i o n
M r. H a r o o n Az i z
M r. S a j j a d H u s s a i n
S . V.P
Products / SME Division

M r. M u h a m m a d S h o a i b G e n e r a l M a n a g e r
Qureshi
Corporate Banking Head

M r. M u h a m m a d H a s s a n E . O . C . / C o r p o r a t e H e a d , F a i s a l a b a d /
Khan
Multan
M r. K h a l i d Q a i y u m
E.O.C. / Corporate Head, (North) Islamabad
Tra d e P r o c e s s i n g C e n t r e
The Bank of Punjab

M r. M u h a m m a d H a n i f
M r. Taj a m m a l H u s s a i n
E.O.C. / Executive In-charge

A . V.P
O f f i c e r s Tra i n i n g I n s t i t u t e
M r. N a v e e d H a f e e z
S . V.P. / Ad m i n i s t r a t o r
Shaikh
M r. Tar i q M a h m o o d
A . V.P
Mughal
Law Department
S i r d a r Ah m e d J a m a l
Sukhera
Ms. Zubia Ramzan
Legal Consultant / Coordinator

In-charge
BOP 1st Punjab Modaraba

M r. S a l m a n S a e e d
Chief Executive
M r. M u h a m m a d S a l m a n C o r p o r a t e S e c r e t a r y
Ag r i c u l t u r e C r e d i t D e p a r t m e n t
M r. M u h a m m a d J a v e d
S . V.P. / H e a d
Muzaffer
M r. M o a z z a m M a h m o o d E . O . C / M a r k e t i n g C o o r d i n a t o r
Maneka
Shares Department
M r. M u h a m m a d I q b a l
A . V.P. / As s i s t a n t S e c r e t a r y
Compliance Cell
Qazi Muhammad Latif
E.O.C. / Chief Compliance Officer
Regional Office Lahore

M r. Z a l m a i Az a m
V.P. / R e g i o n a l C h i e f
M r. Az h a r N a w a z
A . V.P. / R e g i o n a l M a n a g e r
Regional Office Rawalpindi
M r. Am i r M u m t a z
A . V.P. / R e g i o n a l C h i e f
M r. Ab d u l S a l a m
Regional Manager
13
The Bank of Punjab

Regional Office Faisalabad
M r. Am i r Al i S a d i q u e
V.P. / R e g i o n a l C h i e f
M r. S a e e d Ah m a d R a h i R e g i o n a l M a n a g e r
Regional Office Gujranwala
M r. S . M . A t i f
E.O.C. / Regional Chief
M r. S a r f r a z Ah m a d
Regional Manager
Regional Office Multan
M r. N a e e m u l H a s s a n
A . V.P. / R e g i o n a l C h i e f
Mehmood
M r. I j a z I q b a l
Regional Manager
Regional Office Karachi
M r. Am i r H a s s a n
A . V.P / R e g i o n a l C h i e f
M r. I n a m u d D i n Ak b a r
Manager
14
The Bank of Punjab
15
O R G AN I Z T I O N AL C H AR T
The Bank of Punjab
Organizational chart
Chairman & Board

of Directors
Managing Director
GM
Finance
GM Admin
Regional
Office Lahore
GM
Operation
Regional
Office Multan
GM
Liability
GM
Treasury
Regional
Office FSD.
GM
Special
Mgt. Div.
Regional
Office RWP.
254
Branches
GM SME
Div.
Regional
Office Karachi
Country
Risk Mgr.
GM IT.
Regional
Office
Gujranwala
The Bank of Punjab
16
LAHORE REGION
In Lahore region The Bank of Punjab have 65 branches out of which 11 branches are
dealing in foreign exchange. In Lahore region regional office is at 7 Egerton roads
Lahore.
FAISALABAD REGION
In Faisalabad region The Bank of Punjab have 38 branches, out of which 4 branches
are dealing in foreign exchange.
GUJRANWALA REGION
In Gujranwala Region, there are 45 branches. In this region 5 branches are providing
foreign exchange banking facility.
RAWALPINDI REGION
In Rawalpindi region BOP have 41 branches with 4 branches dealing in foreign
exchange.
MULTAN REGION
In Multan region Bop have 60 branches, out of which 7 branches are providing the
foreign exchange services facility.
KARACHI REGION
There are only four branches in this region. All these branches are dealing in foreign
exchange.4 branches
.
The Bank of Punjab
17
Branch hierarchy
Main Branch Lahore
Chief
Corporate
Manager
Advances
Cash/Dep
osit Dept.
Accounts
Dept.
Branch
Manager
Advances
Dept.
Remittanc
es Dept.
Forex. Manager
Consumer
Finances
Forx.
Dept.
Acc.
opening
Dept.
The Bank of Punjab
18
C o m p a r a t i ve An a l ys i s
Banking Industry
Banking is one of the most sensitive businesses all over the world. Banks play very
important role in the economy of a country and Pakistan is no exemption. Banks are
custodian to the assets of the general masses. The banking sector plays a significant
role in a contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance. It is purchase of car or building
of a home, banks are always there to provide the services. It is playground or any
educational or healthy societal activities the money of banks nurtures them. It is an
industrial project or agricultural development of the country the sponsor-ship of banks is
very much involved. Banks play very positive and important role in the overall economic
development of the country.
Pakistan has a well-developed banking system, which consists of a wide variety of
institutions ranging from a central bank to commercial banks and to specialized
agencies to cater for special requirements of specific sectors. The country started
without any worthwhile banking network in 1947 but witnessed phenomenal growth in
the first two decades. By 1970, it had acquired a flourishing banking sector.
Comparison with other banks
Nationalization of banks in the seventies was a major upset to domestic banking
industry of the country, which changed the whole complexion of the banking industry.
With irrational decision at the top all the commercial banks were made subservient to
the political leadership and the bureaucracy. Specialized banking institutions were
already working in the public sector. The new accountability paradigm changed the
business ethics in the banking industry, and with this change started the disaster.
The Bank of Punjab
19
Nationalization of banking industry was accompanied by violent changes in the external

value of rupee. The commercial banks thus lost their assets management equilibrium,
initiative and growth momentum. They ceased to be a business concern and became
big bureaucracies. This was accompanied by indiscreet loaning under political pressure.
They suffered from three terminal diseases: non-performing loans; higher intermediation
cost.
The era of nineties was the climax of privatization, deregulation and restructuring in the
domestic banking industry and financial institutions. The Muslim Commercial Bank was
the first bank to privatize. Followed by Allied Bank limited, United Bank Limited and now
the Habib Bank Limited have been privatized. One thing good for that particular period
was the recruitment of fresh officers in the domestic banking industry through wellorganized policies of Banking Council. With the decay of Banking Council there was
flood of insincere, nonprofessional, incompetent candidates directly appointed/ recruited
in all the domestic banks of the country.
Public sector banks
National Bank of Pakistan

NBP
First Women Bank Limited
FWB
The Bank of Khyber
KB
The Bank of Punjab
BOP
The government of Pakistan permitted small private sector banks to operate, which
indulged in doubtful policies to promote business. The public sector banking, which
constituted the backbone, thus continued to suffer because of their approach, size and
carried over liabilities. Mehran Bank is the prime example of that kind of lax banking in
the country, which ultimately merged into National bank of Pakistan i.e. last resort of
domestic banking industry.
The Bank of Punjab
20
Local Private Banks
Askari Commercial Bank Limited

Bank Al-Falah Limited
Bank Al Habib Limited
Bolan Bank Limited
Faysal Bank Limited
Metropolitan Bank Limited
Platinum Commercial Bank Ltd
Prime Commercial Bank Limited
Saudi Pak Commercial Bank Ltd
PICIC Commercial Bank Limited
Soneri Bank Limited
Union Bank Limited
Muslim Commercial Bank Limited
Allied Bank of Pakistan
Union Bank Limited
Mashreq Bank
In the meanwhile, western banks started entering into the business. They, with the
support of ruling elite, concentrated on the big business, leaving the routine business to
the local banks. This reduced the profitability of the local banks.
The Bank of Punjab
21
Foreign Banks
ABN Amro Bank
Al Baraka Islamic Bank
American Express
The Bank of Tokyo Mitsubishi
CITI Bank
Credit Agricole Indo Suez
Deutsche Bank
Doha Bank
Emirates Bank
Habib Bank A. G. Zurich
Hong Kong Shangai Banking
Corporation
IFIC
Mashreq Bank PJSC
Oman Bank
Rupali Bank
Standard Chartered Bank
Special Banks
Zari Tarqiati Bank Ltd.
Industrial Development Bank of
Pakistan
Punjab Provincial Cooperative Bank
Limited
Comparative Analysis of Domestic Banking Industry of Pakistan (Rs. million)
Bank
Deposit
Advances
Investments
The Bank of Punjab
22
ACB
51,732
30,035
26,759
BAH
34,240
23,775
18,831
8,295
BOP
23,767
7,761
6,621
3,298
1,328
FB
24,554
21,935
6,842
UNION
328,182
167,523
142,877
BB
BANK
490
KB
2,640
2,118
MB
5,079
3,532
856
Metro
28,515
19,444
15,013
MCB
182,706
78,924
89,610
NBP
362,866
140,547
143,525
PCB
21,155
10,876
10,306
PB
SPB
14,640
12,341
9,016
8,522
7,534
6,365
SB
11,378
20,545
37,760
28,890
9,844
11,822
154,915
74,117
69,385
UB
UBL
The Bank of Punjab
23
Comparative Analysis of Earning per Share of domestic Banking Industry of

Pakistan
Name of the Bank
1Q2003 1Q2004 Growth
Askari Comm. Bank
2.16
2.43
13%
Bank Al Habib
0.70
1.44
107%
Bank of Punjab
0.23
1.17
407%
Bolan Bank
0.07
0.10
43%
Faysal Commercial
1.91
1.39
-28%
KASB Bank
0.16
0.05
-68%
MCB
2.21
1.92
-13%
Meezan Bank
0.17
0.38
126%
Metropolitan Bank
1.09
1.68
54%
PICIC Commercial
0.56
1.05
88%
0.46
0.76
66%
Saudi Pak Commercial 0.92
0.36
-61%
Bank
Bank
Prime Commercial
Bank
Bank
Soneri Bank
0.60
1.21
102%
Union Bank
0.54
0.62
13%
The Bank of Punjab
24
ACB
BAH
BOP
500%
BB
FCB
400%
KB
300%
MCB
MB
200%
Metro
100%
PICIC
PCB
0%
SPCB
-100%
SB
UB
Above chart show the growth of all local banks. The bank of Punjab has highest growth
Growth Rate (earning per share)
among its local competitors.

Gross Assets of Different Domestic Banks of the Country (Rs. in Million)
Gross Assets
Bank
2002
2003
ACB
70,313
85,387
BAH
49,437
58,148
BOP
29,525
43,621
BB
10.595
11,726
FB
36,671
47,606
KB
4,037
8,990
MB
6,971
11,102
The Bank of Punjab
Metro
41,381
58,982
MCB
235,139
272,324
NBP
432,803
471,860
PCB
27,982
40,134
PB
21,637
29,566
Total
955,907
1,139,446
Administrative Expenses of Different Domestic Banks
Bank
2002
2003
ACB
1,090
1,436
BAH
760
1.062
BOP
900
999
BB
380
375
FB
619
835
KB
204
327
MB
195
255
Metro
513
662
MCB
8,079
7,575
PCB
326
564
PB
512
719
25
The Bank of Punjab
26
Total Equity of Different Domestic Banks (Rs. Million)
Bank
2002
2003
BB
1,113
1,092
FB
4,120
5,080
KB
593
1,216
MB
1,476
1,637
Metro
2,074
2,753
MCB
6,314
7,726
NBP
14,279
18,134
PCB
1,323
1,784
PB
1,380
1,536
Current Financial position of The Bank of Punjab

Directors Report
On behalf of the Board of Directors, I am pleased to present accounts of the Bank of
Punjab for the half year ended June 30, 2005.
During six months period under review, Pakistans economy has gained significant
momentum with broad based economic growth in all sectors, which can be attributed to
consistent application of wide-ranging structural reforms, prudent macro economic
policies, confidence in private sector and financial discipline. Resultantly, the country
economic growth rate has exceeded eight percent and the economy has positioned
itself as the second fastest growing economy in Asia.
The Bank of Punjab
27
Manufacturing & agricultural sectors exceeding their targeted growth rates denote that
positive affects of growth in these important sectors of our economy shall be transferred
to other sectors of the economy augmenting their growth in periods to come.
It gives me immense pleasure to inform you that your bank has achieved an unprecedented results for the six month period under review by earning highest ever profit
(both before & after tax) & EPS for any half yearly period since its operations. Profit
(before tax) of Rs.1,908 million indicates growth of Rs.791 million (71%) from last year
corresponding period figure of Rs.1,117 million. While Profit (after tax) of Rs. 1,531
million shows increase of Rs.644 million (73%) resulting in EPS of Rs.8.47. This
impressive performance is essentially ascribable to increase in net markup income of
Rs.789 million (101%) showing consistence in banks reliance on earning from its core
activity. Total asset base of the bank has risen by Rs.19,229 million to Rs.85,548 million.
Advances have reached a level of Rs. 46,840 million, signifying growth of 19% in high
return asset of the bank from the figure on December 31, 2004, while deposits have
increased to Rs.70, 481 million showing growth of 29%. Banks determined focus on
improving its deposits base has resulted in phenomenal rise in deposits, which apart
from providing much required liquidity also lowered banks advances to deposits ratio to
a healthy & satisfactory %age of 66%.
Owing to splendid performance & sound financial footing M/s PACRA have upgraded
long term credit rating of your bank from A+ to AA- (double A minus) and short term
rating from A1 to A1+ which is the highest benchmark in short term rating scale. Your
bank is in compliance with all regulatory rules & regulations including compliance with
recommendations of Basel-II Committee. Keeping in view excellent results the Board of
Directors of your bank have approved an interim dividend for its shareholders in the
form 30% stock dividend. Apart from remunerating stakeholders this bonus issue shall
make your bank in compliance with minimum paid-up capital requirement of Rs. 2,000
million well before specified date.
Management is consistently in pursuit of opportunities to improve the Banks
performance and improve operational aspects of the bank, both qualitatively and
quantitatively, benefits of which shall accrue in future.
The Bank of Punjab
28
We extend our utmost appreciation to the management for their record performance.
The Board of Directors is also grateful to the Government of Punjab for its consistent
support, State Bank of Pakistan for its guidance, valued customers for their patronage
and business and to its staff for their untiring effort to make the organization a success.
The Bank of Punjab
29
THE BANK OF PUNJAB

BALANCE SHEET AS AT JUNE 30, 2005 (UN-AUDITED)
June
Note
ASSETS
December
30, 2005
31, 2004
(Rupees in thousand)
Cash and bank balances with treasury banks
7,944,933
5,579,566
Balances with other banks
4,593,346
2,118,242
Landings to financial institutions
7,867,739
1,019,488
Investments
14,587,620
16,197,505
Advances
46,840,452
39,438,923
2,021,944
1,277,201
1,692,930
85,548,964
689,486
66,320,411
333,479
267,113
3,027,676
2,831,605
70,480,955
54,724,311
61,989
81,795
743,702
567,540
1,373
74,649,174
10,899,790
8,964
58,481,328
7,839,083
Share capital
1,807,476
1,506,230
Reserves
3,011,642
2,770,645
Inappropriate profit
1,132,764
5,951,882
143,590
4,420,465
Surplus on revaluation of assets
4,947,908
3,418,618
10,899,790
7,839,083
Other assets
Operating fixed assets
LIABILITIES
Bills payable
Borrowings from financial institutions
Deposits and other accounts
Sub-ordinate loans
Liability against assets subject to finance lease
Other liabilities
Deferred tax liability
NET ASSETS
REPRESENTED BY
Contingencies and commitments
The Bank of Punjab
30
The Bank of Punjab
31
Six year at glance

Profitability related ratios
Profitability Ratios
10
8
6
4
2
0
Income/ Earning Average

Expenseper share toatal
Ratio
assets
turnover
2004
2003
2002
2001
2000
1999
Balance sheet & Relevant Ratios
60000
50000
40000
Rs. in m 30000
Advances
Deposits
20000
10000
0
2004 2003 2002 2001 2000 1999

Years
The Bank of Punjab
32
Advances to deposit ratio

80
70
60
50
40
30
20
10
0
2004 2003 2002 2001 2000 1999
Capital Adequacy ratio

20
15
10
5
0
2004 2003 2002 2001 2000 1999
The Bank of Punjab
33
B u s i n e s s p ro c e s s a n a l ys i s
SERVICES
The Bank of Punjab provide the following services to its customers
1. ATM Facility
The Bank of Punjab provides ATM Card facility to its customer, using M net system, giving
to customer 24-hour access to their accounts from any ATMs.
Safety Tips
Guard Your Card
To avoid any damage keep your Online Cash ATM card in a safe place.
Sign on the back immediately after receiving your ATM card.
Never write your PIN or share it with anyone including the bank staff.
Dont use your phone number or other personal informations like your date of
birth etc. as PIN.
You can make maximum of three PIN entries (i.e. two entries in case you
enter the wrong PIN first time) after which your card will be captured by the
ATM machine.
Be Bright
In case you need to use an ATM after dark always choose an ATM, which is
well lit.
It is advised to retain the receipts until you match them against your account
statement.
Stay Alert
It is safe to check your surrounding before using ATM. Visit another ATM if the
machine is obstructed or poorly lit.
Shield the screen and keypad so anyone waiting to use the ATM cannot see
your PIN or transaction.
The Bank of Punjab
34
On realizing anything or someone suspicious in the area cancel your

transaction and leave right away.
Dont Flash Your Cash
Count your cash before leaving the ATM. Dont try to count your money after
leaving the ATM or at any other insecure place.
Make sure to keep your money, receipt, and card safe in the wallet after
making a withdrawal.
Act Immediately
Pick your cash or reclaim your card in 20 seconds otherwise the ATM
machine will capture your card.
Remove your card immediately because the ATM will only dispense cash
after you remove the card.
ATM Charges
Sr.
Transaction Type
Issuance of ATM
Charges
Rs.250/- Per Card
(except for
staff)
2
Annual Charges
Rs.250/- ATM Card (except for

staff)
Cash Withdrawals Self Customer +ATM
Rs.10/- per Transaction(except for

staff)
Cash Withdrawals Self Customer +
Rs.30/- per Transaction (except for
Other ATM
staff)
Cash Withdrawals Other Customer +
Self ATM
staff)
The Bank of Punjab
Balance Query
35

staff)
Mini Statement
Rs.10/- per page (except for staff)
80 column Statement
Rs.15/- per page (except for staff)
2. Online banking
The Bank of Punjab provides the Online Banking Facility to its account holders at 147
branches all over Pakistan. Cash may be accepted at a branch for crediting accounts at
another branch; a branch can also pay the Cheques by debiting the customers account at
another branch. There are 147 branches, which are providing online facility at this time.
Following facilities are available at Bank of Punjabs Online Program for its customers:
1. Payments of Cheques.
2. Cash Receipts.
3. Transfer of Funds through Cheques or Cash between Branches.
The Bank of Punjab
36
Online banking charges
Sr.
Transaction Type
1
For Transfer- Account to Account
2 1)
For Cash Transactions;
Charges
Rs.50
i) Up to Rs.500, 000/-
0.02% Min Rs.50/-
ii) Above Rs.500, 000/- to Rs.1000, 000/-
Rs.100/- (Flat)
iii) Above Rs.1000, 000/-
Rs.200/- (Flat)
Note
1) (Staff members will be exempted)
2) (The charges will be applicable on depositor in
case of deposits and from payee in case of cheque
encashment)
3. Consumer Financing
Consumer financing refers to any financing allowed to individuals by financial institutions to
meet their personal needs. It gives individuals the ability to generate funds for their
personal consumption by borrowing against future income. It can range from financing a
vacation, to buying a car or a house, etc.
Consumer financing department of The Bank of Punjab is offering loans under the following
schemes
BOP Quick Cash
BOP Aasaish Loan
BOP Car Loan
BOP House Loan
BOP Demand Finance
The Bank of Punjab
37
BOP QUICK CASH

The Bank of Punjab QUICK CASH is a running finance facility provided to salaried
individuals through their bank accounts with the Bank for purchase of consumer items or
personal needs. The facility is an alternative to consumer financing offered by other banks
except it is R/F instead of Demand finance, which is more favorable to the borrower .
ELIGIBILITY CRITERIA
Between 25 and 55 years of age
Permanent employee of selected organizations having at least 3 years of

experience
Computerized National Identity Card holder
Net take home salary is Rs.15000/ - & above as mentioned on salary slip/
salary certificate (excluding benefits). For Govt. Employees net take home
salary is Rs.10, 000/-
Loan amount/Limit
Minimum amount is Rs.50, 000 and maximum amount is Rs. 200,000?
Tenure of Loan
Loan is available for one year, further renewable subject to satisfactory conduct of account.
Mark-up Rate
Most competitive rate in the market, which will be calculated on daily product basis, which
is
For senior Bureaucrats & Executive
Average six months KIBOR+ 600BPS of
Corporate Client
with floor rate of 14.5% p.a.
For all other client
Average six month KIBOR + 600 BPS

With Floor rate of 16% p.a.
The Bank of Punjab
Other Charges
Non-refundable fee
Processing Fee
Documentation charges
38
Rs.450/
Rs. 1,850/
Rs. Actual
How Loan will be repaid

Loan will be repaid on Demand / Lump sum.
Pre-Sanction Document Requirements
Application Form
Copy of CNIC
2 recent photographs
Latest Salary Slip/Salary certificate on Company's letterhead
Latest Copy of utility Bills
Copy of service ID card
6 months A/C statement showing salary being credited
Post-Sanction Document Requirements
Two personal guarantees (expected incase of BOP employee)
Financing Agreement
D.P. Note
Letter of hypothecation
Post Dated Cheques
White Documents
I. Letter Of authority
II. Authorization /consent
III. Letter of Arrangement
IV. Debit Authority
V. Letter of Installment
VI. Under taking regarding KIBOR
The Bank of Punjab
39
BOP AASHAISH LOAN
0% Mark-Up (12 months)
0% Down Payment
FREE Home Delivery
Financing Tenures of 18, 24 & 36 months are also available with nominal
markup
Easily Affordable & Flexible Installments
Quick Processing
No Hidden Cost, No Insurance cost
Product
The Bank of Punjab Aasaish Loan is Demand finance facility for purchase of consumer
durable goods like TV, Refrigerators, Mobiles, Microwave Ovens, and Fans, Audio/Video
system
Salaried Person
Confirmed permanent employee with one year experience
Salary is routed through a bank account
Private Employees
In addition to the above mentioned condition:
Having age between 25 and 59 years OR date of retirement, whichever is

earlier
Having minimum Take Home salary of Rs.10,000/-(Rupees Ten Thousand)

per month
Self-employed business / Professional
The Bank of Punjab
40
In addition to above condition
Having age between 25 and 57 years (57 Years at maturity of facility).
Minimum 2 years in current business
Having minimum Net Income of Rs.15,000/-(Rupees Fifteen Thousand) per

month
Documentation required for processing
Application form
Copy of NIC/CNIC
Customer
Consent
Form,
if
loan
is
Rs.
50,000/-
OR
above
The Govt. employees will submit the following two documents in addition to
documents mentioned in Serial # 1, 2 & 3
i.
Latest Salary Slip
ii.
Employer Certificate on letterhead
Additional requirements for private employees

The Private employees will submit the following three documents in addition to above
documents mentioned.
Bank Statement for last 3 months
Latest Copy of utility bills (Electricity & phone)
Income Tax Return/Wealth Statement
Additional requirements for self-employed professional/business Person

The
Self-employed
Professional/Businesspersons
will
submit
the
following
documents in addition to documents mentioned above following documents are attached.

The Bank of Punjab
Latest Copy of utility bills (Electricity & phone) of residence
Income Tax Return/Wealth Statement
Business related documents
Documentary evidence in business or in the profession for the last 2 years
Proprietorship Certificate/Partnership deed
Copy of Professional Degree (For Professionals)
Latest utility bills of current business address
Processing Charges: Rs.190/Documentation Charges: Actual

POST-SANCTION DOCUMENT REQUIREMENTS
Financing Agreement
D.P. Note
Post Dated Cheques
White Documents
I. Letter Of authority
IV. Debit Authority
BOP CAR LOAN
Easily Affordable & Flexible Installments
Quick Processing
41
The Bank of Punjab
Minimum Down Payment
Minimum Insurance
42
Product
BOP car loan is a Demand Finance Facility to Purchase Brand new locally manufactured/
Assembled Cars for Personal Use
Salaried Person
Permanent employees of selected organizations with at least 3 years of service with a
minimum take home salary of Rs.15, 000. For Govt. Employees, Net take home salary is
Rs. 12,000/Self-employed
Business person and professional having minimum 3 years in current business
Holder of computerized national identity card
Loan Amount
Minimum amount is Rs.200, 000 and maximum amount is Rs. 1,000,000
Tenure of Loan
Loan is available for a period of minimum 3 years and maximum 5 years
Down Payment
Down payment is (10 to20%) of the value of the car
The Bank of Punjab
43
Mark up rate charged

Most competitive rate available in the market
For all customers
average six moths KIBOR+ 375 BPS with

With Floor rate 10% p.a.
Other Charges
Non refundable fee
Processing Fee/ Documentation charges
Registration Charges
Rs.450/Rs. 3,750/Actual
Insurance of the car

BOP has arranged insurance facility from its approved list of companies at discount rates
for the convenience of its customers. Insurance premium for the first year will be paid in full
up front with down payment and for subsequent years along with installment
Monthly Installment plan
L
oan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.

We can easily calculate monthly installments by multiplying the loan amount with the
pricing factor:
Tenor of Loan
3 Years
4 Years
5 Years
Pricing Factor
0.03111
0.02418
0.02004
DOCUMENTS REQUIRED
For salaried individuals:
Copy of NIC
The Bank of Punjab
2 Recent Photographs
Latest Salary Slip / Certificates on Comp. Letterhead
Latest Copy of Utility Bills
44
For self employed business persons/professionals
Copy of CNIC
Two recent photographs
Bank statement for the last I year of business account
If not banking with us Banking certificate from branch manager stating Title,
Account number, Business entity, Maintained since, Authorized signatory
Copy of Latest utility bills
Business Related Documents
Documentary evidence in business or in profession for the last 3 years
Income Tax return / wealth tax statement
Proprietorship/Partnership Deed
Articles & Memorandum of Association
Latest copy of paid utility bills (Phone & Electricity) of current business
address
Membership/payment receipts of Chamber of Commerce/Trade Association /

Anjuman-e-Tajiran, if available
The Bank of Punjab
45
BOP DEMAND FINANCE (CLEAN)

Permanent/ confirmed GOVT/ private employee/ professional maintaining

salary account in any bank, having at least 1 years of experience
Monthly installment should not exceed 40% of take home salary
Computerized National Identity Card holder
Loan amount/Limit
Up to 25 take home salaries (Maximum Loan amount + Rs. 500,000/-)
Tenure of Loan
Loan is given for the period of 1year to 5 year
Mark-up Rate
Most competitive rate in the market, which will be calculated on daily product basis, which
is
For all other client
Average six month KIBOR + 550 BPS

With Floor rate of 14% p.a.
Other Charges
Non-refundable fee
Processing Fee
Documentation charges
Rs.450/
Rs. 1,850/
Rs. Actual
Pre-Sanction Document Requirements
The Bank of Punjab
46
Copy of CNIC
Latest Salary Slip/Salary certificate on Company's letterhead
Two personal guarantees with CNIC (exemption of BOP staff)
Employer Certificate on company letter head with joining date, current

designation, length of service, gross salary & certificate from HR department
for perks
Departmental Undertaking regarding salary rout though
Data check
Undertaking Regarding Payment of post dated cheques.
Post-Sanction Document Requirements
Two personal guarantees (expected incase of BOP employee)
Financing Agreement
D.P. Note
Post Dated Cheques
White Documents
I. Letter Of athoriety
IV. Debit Authority
VI. Under taking regarding KIBOR
The Bank of Punjab
47
HOUSE LOAN
Product
The Bank of Punjab house loan is long-term finance facility for purchase of house/flat or
construction of house on self-owned plot or for renovation/ home
Salaried Person
Permanent employees of selected organizations with a minimum take home salary of
Rs.20, 000
Self-employed
Business person and professional having minimum 5 years in current business
Holder of computerized National Identity Card
Loan Amount
Purpose
Purchase of House/Flat&
Construction
Minimum
Maximum
Amount
Amount
Bank Rate
Bank financing up
Rs. 300.000/- Rs. 7,500,000/- to 70% of

assessed value
Home Improvement/
Renovation / Addition
Bank financing up
Rs. 300.000/- Rs. 3,000,000/- to 20 % of
assessed value
The Bank of Punjab
48
Tenure of the loan

Purpose
Minimun
Purchase of House/
flat
3 years
Construction
3 years
Home improvement
3 years
Maximum
15 years
15 years with maximum 12 months grace
period.
05 years
Mark up rate charged

Most Competitive rate in the market, which will be calculated on daily product basis, linked
with Average six months KIBOR +300 BPS; it will be reviewed every quarter.
(For each year new amortization schedule will be provided to the customer in case of any
change in mark up)
Other charges
Non-refundable fee
Rs.450/-
Processing Fee
Rs. 2,950/-
Valuation charges, legal charges Stamp duties, levies etc
Actual
How will the loan be repaid?

Loan will be repaid in equal monthly installments through postdated cheques. Total monthly
installment includes principal, mark up and insurance amount.
Monthly installment can easily be calculated for e.g. .if, you take a loan for Rs. 1,000,000
for 15 years. Simply multiply the 15-year factor by your amount Rs. 1,000,000 * 0.00985 =
Rs. 9850 will be your monthly installment payable excluding insurance (Life & Property).
The Bank of Punjab
Financing
period
3
4
5
6
7
8
9
10
11
12
13
14
15
49
Pricing Factor
0.03157
0.02465
0.02052
0.01778
0.01584
0.01439
0.01328
0.01240
0.01169
0.01110
0.01061
0.01020
0.00985
(Insurance premium for the first year will be paid in full up front with down payment and for
subsequent years along with installments.)
Security of the loan
House/flat purchased
Plot on which construction is to be carried out
House on which renovation is to be carried out
Documents are required
Copy of CNIC
Two recent photographs
Last three Salary slips/ salary certificate on company's letter head with joining
date Current designation, length of service, gross salary & certificate from HR
department for perks.(for salaried individuals)
The Bank of Punjab
50
Bank statement for last six months for salaried individuals and for the last I
year incase of self-employed businessperson
Copy of utility bills
Fee slip of children if applicable
Income tax return / wealth statement
Copy of Rent agreement if living in rented house
Business proof (for a business person)
4. Agriculture Financing
The bank of Punjab is offering following agriculture schemes
Kissan Dost Agricultural Scheme
Kissan Dost Tractor Scheme
Kissan Dost Mechanization Scheme
Kissan Dost Farm Transport scheme
Kissan Dost Eslah-E-Arazi Scheme
Kissan Dost live stock development Scheme
Kissan Dost livestock Scheme
Kissan Dost Commercial Agro Services Scheme
Kissan Dost Agri Mall Scheme
Basic requirement for all these schemes are same. But there is little bit difference
according to the scheme and amount of the loan. In most of the schemes the requirement
is that the Brower should be resident of cultivated area and own a minimum 5-acre and
maximum 50-acre area. Amount of loan is different for different loans. For all these loan
there must be some security for bank. Mark up rate is different according to scheme.
5. Corporate Financing
Relationship Managers, at the bank of Punjab are dedicated towards developing
relationships with corporate clients to service their financial needs. Advances department
provide the advance to the reliable corporate client. The corporate finance department of
The Bank of Punjab
51
bank of Punjab is offering different types of loan facilities, like Demand Finance, Cash
Finance, Running Finance over draft etc.
For corporate financing bank the financing limit for client on the basis of its asset and
bossiness exposure. The Corporate Banking Group manages a high quality asset portfolio
being an active player in many sectors including textile, sugar, leather, pharmaceutical,
fertilizer, petrochemical, power, automotive, oil and gas distribution, marketing and refining
and fast moving consumer goods industries.
In the dynamics environments of business bank provide the short-term and long-term
funding needs in the most efficient manner, drawing from the full range of our resources
and capabilities. To provide finances bank must look at the affectivity and efficiency of the
business. The bank of Punjab is offering the variety of working capital financing facilities.
The bank of Punjab is also providing the structured finance syndicate to its clients.
6. Trade Services
The foreign exchange department of bank of Punjab is offering the trade service to clients.
The bank of Punjab offers a full range of documentary letter of credit services as well as
discounting and reimbursements to support any or every part of the customer trade
transaction. Experienced personnel use their specialized expertise to innovatively structure
trade transactions and process daily trade transactions, and have end-to-end responsibility
for your letters of credit, reimbursements, negotiation of documents, and inquiries. They
also handle export guarantee transactions and government donor flow intermediation.
The bank of Punjab can provides trade related facilities, for an appropriate period, in line
with working capital cycle of client, to assist client in financing their imports/exports. There
are two types of LC, sight LC and usance LC. In sight LC bank pay the amount when it
receive the Bill Lading from Correspondent bank. In usance LC, there is limit of payment
normally 90 days. For providing these facilities bank have following charges schedule.
Charge schedule of the bank of Punjab
Sight Bills
The Bank of Punjab

I)
a) At Negotiation end:
b) Collection charges for restricted
L/C (where negotiation is restricted
to some other Banks and
presented to us for forwarding).
c) At opening end (at the time of
retirement) Rates of Mark-up
i.) If retired within 3 days from the
date of lodgment.
ii.) If retired after 3 days of
lodgement.
52
Negotiation commission @ 0.50% - Min Rs.
200/-+ Courier Charges Rs.50/Rs. 250/- (Flat) Per Bill + Courier Charges
Rs.50/-
As per approval of Sanctioning Authority

As per approval of Sanctioning Authority
NOTE:
* No Mark-up will be charged from the date of negotiation till the date of lodgement of
documents received under Inland L/Cs, where the payment as per reimbursement
arrangement is made to the negotiating bank only on receipt of documents.
The Bank of Punjab

2
Usance Bills
1) Negotiating End
i) Markup on documentary Bills
Purchased
/Negotiated
under Inland L/C
2) Opening End
a) At the time of Acceptance of the
Bills.
53
Negotiating commission Rs.200/-Flat+Courier

charges Rs.50/(I) In case of Sight L/Cs Mark-up is to be
recovered/charged as per approval of
Sanctioning Authority.
(II) In case of Usance L/Cs Mark-up is to be
recovered/charged
as per approval of Sanctioning Authority.
(III) In case of Usance LCs of our own Bank,
Mark-up is to be recovered/charged as per
approval of Sanctioning Authority
Acceptance Commission @ 0.10% per month
shall be recovered/charged for the usance
Import Bills for the period beyond the date
upto which the commission has already been
charged at the time of opening of LC or
thereafter any extension is made in the
validity of the LC.
b) At the time of booking
Rs.350/- (Flat).
c)At the time of maturity/due date
Rs.350/- (Flat).
At Collection End
Collection Charges
3
Rs.250/Rs.50/-
(Flat) per bill + courier charges
Discrepancy Charges
Rs.500/- (flat)
The Bank of Punjab
54
These all facilities are provided on the specific limit maintained by the corporate bank. The
bank of Punjab is offering FIM, FATR facilities to its clients.
For foreign trade, The Bank of Punjab has collaboration with following foreign bank for
correspondent.
CORRESPONDENT BANK
Bank Name
Address
STANDARD
CHARTERED BANK
23-25 Mahatama
Ghandi Road, FORT
Mumbai 400 001
Swift & Telex

SCBLINBB
Sepehr Tower Somayeh

BANK SADERAT IRAN Ave. P.O. Box 15745BSIRIRTH 0088-212352
631 Tehran, Iran
Currency
Account No.
ACU $
22205248426
ACU $
216/1/1/6501
NATIONAL BANK OF
CANADA
Banque Nationale du
Canada 600,rue de la
Gauchetiere Quest
Montreal H3B 4L3,
Canada
BNDCCAMMINT 00210525181
CAD
097613-228-00101
UNITED BANK AG
ZURICH
8034 Zurich, P.O.Box

1176 Feldeggstrasse
55, Switzerland
UNILCHZZ
CHF
859.03.01.001
DANSKE BANK
AKTIESELKAB
Holmens Kanal 2-12,

DK-1092 Copenhagen
K, Denmark
DABADKKK 27000
daba
DKK
3996077691
COMMERZ BANK
Commerz Bank AG,

Frankfurt ZFO BC
MITTE 9.6.4 Heidrun
Koch-Vollbracht
COBADEFF 00414152530
EURO
400-8807406-00EUR
NATIONAL BANK OF
PAKISTAN
Filale Frankfurt/M.
Frankfurt Branch,
Germany
NBPADEFF 0041414103
EURO
491551
STANDARD
CHARTERED BANK
37 Grace Church Street

London EC3V OBX-U.K.
SCBLGB2L 0051885951
EURO
01-7087888-96
U.B.A.F., PARIS
190 Avenue Charles de

gualle 92523 Neuilly
Cedex france
UBAFFRPP 0042610334
EURO
01-092225-00151-0
NATIONAL BANK OF
PAKISTAN
90, AV. DES ChampsElysees 75008, Paris,

France
NBPAFRPP 0042651828
EURO
1210-1227-1-1870
ABN AMERO BANK
New York Branch,

P.O.Box 4555/Grand
Central Station, New
York, N.Y 10017 USA
ABNAUS33 0023-62734
EURO
005747324350
HYVEDEMM
EURO
69106935
BAYERISCHE HYPO- Am Tucherpark 16,

UND VEREINSBANK 80538 Munich Germany
The Bank of Punjab
55
AG (HYPO
VEREINSBANK)
UNITED NATIONAL
BANK
18 Finsbury Circus
London, EC2M 7BJ U.K
NBPAGB2L 0051884892
GBP
0001-000063001
STANDARD
CHARTERED BANK
37 Grace Church Street

London, EC3V OBX U.K
SCBLGB2L 0051885951
GBP
01 7087888 01
NATIONAL BANK OF
PAKISTAN
3F, 7-4, 2-Chome, Nishi

Shimbashi, Minato-KU, NBPAJPJT 0072-23830
Tokyo 105, Japan
JPY
21067
ABN AMERO BANK
New York Branch,

P.O.Box 4555/Grand
Central Station, New
York, N.Y 10017 USA
ABNAUS33 0023-62734
USD
574073243541
HABIB AMERICAN
BANK
HABL, 99 Madison Ave.,

New York, NY. 100167419 USA
HANYUS33 0023275859
USD
20729586
MASHERQ BANK ,
PSC
255 Fifth Ave. New York,

NY 10016 USA
MSHQUS33 0023239881
USD
70120078
NATIONAL BANK OF
CANADA
Banque Nationale du
Canada 600,rue de la
Gauchetiere Quest
Montreal H3B 4L3,
Canada
BNDCCAMMINT 00210525181
USD
097613-240-002001-01
NATIONAL BANK OF
PAKISTAN
100 Wall Street, 21st

Floor, new York, N.Y.
10048 USA
NBPAUS33 0023232455
USD
55804561
STANDARD
CHARTERED BANK
1 Madison Ave., New

York N.Y 10010-3603,
U.S.A.
SCBLUS33 0023420117
USD
3582-040168001
U.B.A.F.
(HONGKONG)
LIMITED
UBAF, 18th Floor Far

East Finance Centre, 16
Harcourt Road, G.P.O.
Box 9917 Hong Kong
UBAFHKHX 0080275386
USD
60 030000 001
03 0/96
CITIBANK N.A
111 Wall Street, 5th Floor

/ Zone 9 New York, NY
10005
CITIUS33
USD
36208954
UNITED BANK
LIMITED
30 Wall Street, New

York, U.S.A.
UNILUS33
USD
040-0498-5
OBECTIVES OF INTERNSHIP
This internship was the part of my study course, so objective of this internship was to
learn and gain some practical experience. During the MBA program, I studied many
courses about finance, management etc. Here my aim was to see the application of this
The Bank of Punjab
56
bookish knowledge and its practical implementation. How it is useful in practical life. I
saw the differences in bookish knowledge and its application.
In all jobs related to finance, there is involvement of banks. So my aim was to learn how
banks deal with corporate and general information about rules and regulation of banks.
My second objective of this internship was to learn about general banking, as customer
I tried to get experience, how to work with people of different age, different educational
background, and different interests. How I can be a best team player, how to interact
with officer and deal with subordinates.
.
The Bank of Punjab
57
L e a r n i n g As a S t u d e n t I n t e r n
Duties
Date
12 July to
Description
Account opening is the entrance to bank.
16 July
In this department I worked on different
Supervisor
Mr. Amin Dogar
old account and open new account for

18 July to
individual, proprietor and companies.

I worked in Consumer finance
23 July
department. In consumer finance major
25 July to
job was customer dealing

I worked in Clearing department. Here
26 July
major activities were to receive the
Mr. Muhammad Afzal
Mr. Amir Butt.
cheques and send these for clearing to

other bank after stamping and keeping in
27 July to 1
record.
I worked in remittance department. Here
August
we issued, DD, Pay order, TT, MT and
2 August to
like other responsibilities.

I worked in cash department. Here I
4 August
learnt how they calculate profit on
Mr. Shahid
Mr. Raheel
corporate accounts and transfer the

5 August to
amounts.
I worked in utility collection. Here I learnt
6 August
how bank adjust the collection from other
Miss. Aneela
branches with the accounts of PTCL and

8 August to
WAPDA.
I worked in foreign exchange department.
Manager Foreign
23 August
Here I worked in import, Export and
exchange.
Foreign currency accounts. In each of

24 August
these, I performed different duties.

During this period, I worked in advances
Manager advances
The Bank of Punjab

to 5
58
department.
September
New Knowledge Acquired

As this was my first experience in any bank, so all working of bank was new for me.
About account opening
Account opening is a simple process but it becomes complicated in case of corporate
accounts. For individual or joint account, account opens on following simple requirements.
Copy of national ID card
Written evidence of what applicant is doing
An introducer (a person who already holds account in the bank) for account
opening.
Requirement for company account are as follows
Written request on the letterhead of company from an authorized person to

open companys account
Chief executive, company secretary and director along with common seal
must sign resolution
Attested CNIC copies of all directors
Form 29 attested from registrar of joint stock companies
Memorandum and articles of association.
Certificate of incorporation
Certificate of commencement of business only in case of public limited

company
After the completion of these requirements, bank will open the account and sends letter of
thanks to its customer. When account holder comes with letter of thanks bank will issue
chequebook to account holder. If chequebook is lost the account holder has to give written
The Bank of Punjab
59
application for the stop payment of cheques of that chequebook and fill a form for issuance
of new chequebook.
Remittance
Banks offers different types remittance having different specification. These remittances are
demand draft, for out station payment. Mail transfer is to transfer the amount by mail in any
account of same bank. Telegraphic transfer is same like the MT but here fax machine is use
instead of mail. Pay order is used for intercity payment. This is main difference between
Demand Draft and Pay Order. Call deposit receipt is used in case of tender or auction.
CLEARING
Clearing is used to pay or receive payments to other banks. There are 2 types of clearing
Inward clearing
Outward clearing
Inward clearing
Cheques of our branch that are deposited at other banks are brought to us by NIFT. This is
called inward clearing. In inward clearing we DEBIT a/c of our a/c holder and CREDIT other
branch.
Outward clearing
In outward clearing cheques of other banks are presented in our branch. In it we check
certain factors such as words and figure difference, date of cheque etc.3 stamps are
stamped in these cheques
Clearing stamp
Crossing stamp
Payees a/c credited stamp

In outward clearing we DEBIT suspense a/c and CREDIT a/c no. of our a/c
holders.
The Bank of Punjab
60
CHEQUE RETURN IN OUTWARD CLEARING

If cheque is returned in outward clearing we make an entry of the returned cheque in the
register and give it back to our customer after having his signatures in the register.
CHEQUE RETURN IN INWARD CLEARING
If the cheque is returned in inward clearing, we fine our a/c holder Rs 100 as a penalty and
also make an entry in the register.
INTER BRANCH CREDIT TRANSACTION (IBC)
IBC advice is made for both inward and outward clearing.
CASH
Cash department perform the responsibilities to deal with cash, transfer amounts from one
account to other accounts and calculate the profit for different types of accounts. When
cheque is presented to bank, officer match the word and figure of cheque. If words and
figure is correct then officer verify the signature and check the date. A cheque can be
converted in to cash within six month. After six month cheque expires. For PLS account
bank calculate the profit on the minimum balance in account from 6 th to 29th of the month.
Bank pays this profit after six moth or transfer in account of account holder after six month.
For corporate account profit is calculated on daily basis. Profit is credited after a moth in the
CPA account. Formula used to calculate the profit is
Profit = Capital X days X (%)
365 X 100
FOREIGN TRADE
Foreign trade is divided in two parts, Import and Export
Imports
The Bank of Punjab
61
For import any product, importer first contact with foreign exporter. There are three
possibilities for trade, one is the advance payment of the imported product, second is
contract between two parties and is the LC, when both parties importer do not rely on
foreign exporter. Advance payment and contact is simple payment through bank, but in LC
bank guarantee about the foreign exporter. To open LC importer request for issuance of LC
on legal required paper with Performa invoice, I forms and insurance of the product.
Importer also gives detail of condition of LC. After this request bank will send LC through
swift. After receiving LC documents, foreign importer ships the product and sends the bill of
lading or AWB to local bank. Bank checks the LC and bill of lading. If there is any
discrepancy, bank takes the acceptance from importer about the discrepancies. To clear the
imported product from port, importer takes the bill of lading from bank after the payment of
LC. If importer cannot pay the amount there is two facilities from bank, FIM and FATR. In
FIM the imported product remain in the custody of bank. Importer has facility to realize the
quantity of product as after payment of that quantity. FATR facility is normally for 120 days.
This facility is for the reliable customers.
In this facility customer release the whole
imported product.
Export
Export is just like imports but here we act as exporter bank. In export we perform all that
activity which foreign banks perform in case of import. Exporter provides the documents
like bill of exchange, AWB, certificate of origin, packing list and all other document required
in contract or LC with E form. Bank sends these documents to foreign bank. On receiving
these documents, bank pays the amount according to conditions in LC. Or Contact. In
export bank provides the refinancing and purchasing facility to customers. When customer
has relied on foreign importers then bank take risk and purchase the exports after
shipment. Exporter receives payment from bank, now whole risk of this trade is converted
to bank. This facility is called negotiation or purchasing. In refinancing bank finance the
local exporter according to prudential regulation of state bank.
The Bank of Punjab
62
Advances
Main working of Advances is department is to provide loan to corporate client. This main
job of this department is to maintain the credit limit of client, offer loan, approve loans and
like other work related to corporate loan. Normally banks offer the loan in form of Demand
finance, cash finance, running finance and other schemes according to customer
requirements. Running finance facility is to meet the day-to-day expenses. In running
finance bank debit the account of corporate client and issue the chequebook. Client can
cash the require amount from this account.
Cash finance facility is to meet seasonal
requirement of cash. For example in cotton season, textile related companies require cash
to buy cotton. Bank provide loan and cotton remain in custody of bank, to provide different
loans banks require different securities like Lien, Pledge, Hypothecation and Mortgage.
Lien is marked on liquid assets; mortgage is for the assets like land or building. Pledge is
offered for cash finance or seasonal finance.
Documentation Require
Generally for all types of loans, bank of The Bank of Punjab require following documents.
Document
Accepted Facility offer letter FOL
For
All facilities
Letter of arrangement
All facilities
Demand promissory note
All facilities
Letter of continuity
Running finance
Letter of authority
Letter of installment
Agreement for financing
Letter of pledge
All facilities
Demand finance
All facilities
HYPO
Pledge
Where required
Memorandum of deposits of title deeds
Where required
Comprehensive insurance policy
Where required
Personal guarantee of the Mortgagor/ Director

The Bank of Punjab
63
The Bank of Punjab
64
S W O T AN ALYS I S
Strengths
I. The Punjab government is supporting to The Bank of Punjab. It builds trust of client
on Bank.
II. M/S PACRA has awarded the Bank with the credit rating AA- for Long term and A1+
for Short term, based on its financial results for the year ended as on 31st December
2004
III. The Bank of Punjab has a large network of branches. There are 254 branches all
over the Pakistan
IV. The Bank of Punjab has computerized banking system.
V. The Bank of Punjab provides the online Banking facility to its customer.
VI. To train its employees Bank of Punjab have training center. There are different
training session are held for new and old employees.
VII. Financial position of The Bank of Punjab is growing every year. The Bank of Punjab
has highest earning per share.
Weaknesses
I. The Bank of Punjab has only few branches out of province Punjab. Other banks
have competitive edge.
II. As Bank of Punjab has extensive branches within the Punjab province. It is difficult
to manage large number of branches, further it increase the cost.
The Bank of Punjab
65
III. The staff members of The Bank of Punjab are not satisfied with the pay scale
increments and promotion criteria as compare to other banks.
IV. The work responsibilities are broken into small parts.
V. The bank is offer regular product line. There is need to enhance the product line.
VI. Turn over rate of employees is increasing, as they are not satisfied with the pay
structure.
Opportunities
I. As economy is growing, there is more investment demand in Pakistan. Banks have
opportunity to enhance their business.
II. Imports and exports of the country are increasing.
III. With the threat of WTO SMEs require more funds to enhance their infrastructure to
improve the quality. Banks are the source of these funding.
IV. The number of salaried persons is increasing with the economy structure of the
country. This creates opportunity in consumer financing.
Threat
I. The Bank of Punjab has major GOVT. deposits. With change of government policies
it may affect the bank
II. Entrance of foreign bank in competition with local bank is great threat for bank of
Punjab
The Bank of Punjab
66
III. The State Bank of Pakistan often imposes various restrictions on banks. Therefore,
none of banks is independent in policy making and can launch any product without
the permission of the State Bank of Pakistan.
IV. Government legislations about banking sector
V. Political factor more influence on The bank of Punjab
The Bank of Punjab
67
RECOMMENDATIONS
Last five year performance of The Bank of Punjab shows that the bank of Punjab is
increasing its profitability and its deposits. Being the bank of government, the bank of
Punjab has major government accounts.
The bank of Punjab should try to maintain the accounts of diversified

companies. This will reduce the risk of government policies
To manage its all branches the bank of Punjab should establish the intranet
system.
To attract new customer bank should offer value added services
The Bank of Punjab should increase the line of product to attract the new
clients.
Those activities, which a one person can perform, should be integrated to

save time.
The bank should revise its pay structure and compensation plan according to
the market, in view to decrease the turn over rate
CONCLUSION
The bank of Punjab is the one the best bank in local banking sector. Its growth rate is
highest among all local banks. There are some flaws like the small product range, have
two are three major GOVT accounts and like others. The bank of Punjab has potential to
become top ranking bank in Pakistan banking industry.
My basic purpose of this internship is to learn about the working of bank. During my
internship I got knowledge about general banking, foreign exchange and advances. Staff
member of bank of Punjab are cooperative with me and really help me to achieve my
objective.
The Bank of Punjab

Bibliography
http://www.bop.com.pk
http://www.sbp.org.pk
http://www.business-standard.com
http://www.sheshunoff.com
Staff of the bank of Punjab
Annual report of the Bank of Punjab
68
The Bank of Punjab
69
Glossary
Advice
A bank's written acknowledgement of a transaction
ATM
automated/automatic teller machine
Asset turnover
is a ratio focusing on the volume of sales achieved by the

business
Asset portfolio
Allocating the funds to different assets classes
AWB
Air way bill
Bill of exchange
An order written by an exporter instructing an importer, or an

Importers agent, to pay a specified amount of money at a
specified time
Bill of lading
A document issued to an exporter by a common carrier

transporting merchandise. It serves as a receipt, a contract, and a
document of title.
BPS
Basic points (Set by the bank to adjust markup)
Capital Adequacy
Capital adequacy means having enough capital funds to protect it

from the risk that customer could lose their deposits as a result of
trading losses, e.g. from bad debt by the bank.
CDR
Call deposit receipt
CPA
Corporate premium account
Credit rating
A measured judgment, or formal opinion, about the likelihood that

Interst payments on particular issue of bonds or other debt security
will be paid full and on time, and that debt principle will be repaid in
full at maturity. Ratings are by specialist agencies. The highest
credit rating for long-term debt is AAA.
Commercial banks
An authorized institutions and perform four functions. They accept

deposits, make loans, arrange payment of bills and provide a
number of customer services
Data Check
Data check is a document has records of all loan of customer

form all banks
The Bank of Punjab

DD
70
Demand draft
D.P. Note
Demand promissory note, a legal document
Dividend
Part of a company's profits paid to shareholders
Earning per Share
the portion of a company's profit allocated to each outstanding

share of common stock
Equity
Total assets minus total liabilities.
FIM
Finance against imported merchandise
FATR
Finance against trust receipt
Hypothecation
KIBOR
Karachi Inter bank offer Rate
LC
A bank issued document that guarantees payment for a

pre-specified period and amount
Letter Of authority
A written agreement to allow Bank to deposited or withdrawn from

an account
Lien
An asset held in exchange for debt financing. In lien normally

there are liquid assets like bonds, shares.
Markup
The charge you pay if you borrow money or the income you get if
You invest it.
MT
Mail transfer
Mortgage
Mortgage is charge on immoveable property to secure the finance
NIFT
National Institute of facilitation technology (pvt)
PLS account
Profit loss sharing account
Profitability Ratio
The ratio used to measure the ability of a company to

generate profits.
Pledge
Pledge is the bailment of goods for security. In pledge goods are

in possession of bank.
Sight LC
In sight LC payment will be made on receiving the shipment
The Bank of Punjab

documents.
Stock dividend
A payment by the corporation in share of stock rather than cash
Syndicate
A group of banks acting together temporarily to loan money in a

syndicated credit or to underwrite a new issue of bonds
TT
Tele graphic transfer
Usance LC
In usance LC payment will be made after 90 or 120 days of

shipment
Working Capital
Stock plus debtor minus short-term creditor
71
The Bank of Punjab

Appendix
72
The Bank of Punjab
73
The Bank of Punjab
74

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The Bank of Punjab

THE BANK OF PUNJAB MAIN BRANCH

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

ADP (Accounting & Finance)

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

I dedicate this report to my loving

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

SIX YEAR AT GLANCE............................................................................................30

LEARNING AS A STUDENT INTERN..................................................................56

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

ADP (Accounting & Finance)

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

as Our first priority

for the prosperity of our stakeholder

to Enrich the Lives of community where

for talented and high performing

in all our dealing

for our customer and each other

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

Mian Muhammad Latif

The Bank of Punjab

Principal Staff Officer

Officiating General Manager

The Bank of Punjab

Credit Risk M anagement Division

Liability & Consumer Products Development Division

Products / SME Division

Corporate Banking Head

The Bank of Punjab

E.O.C. / Executive In-charge

Legal Consultant / Coordinator

BOP 1st Punjab Modaraba

E.O.C. / Chief Compliance Officer

Regional Office Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

The Bank of Punjab

Chairman & Board

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

COMSATS Institute of Information Technology Lahore

The Bank of Punjab

The Bank of Punjab

Nationalization of banking industry was accompanied by violent changes in the external

National Bank of Pakistan

The Bank of Khyber

The Bank of Punjab

COMSATS Institute of Information Technology Lahore