Dedication

I dedicated this report to my loving parents,sister,brother and my respectful teachears

without their help and encouragement,it has not been possible.For me accomplish this
task is very necessary within short and limited period of time.I was provided with all
facilities by my parents who helped me complete this challenging assignment within
limited time period.

AKNOWLEDGEMENTS:
I would like to thanks Almighty ALLAH who is the Lord and the Creator of the
universe and is the one who has supported me throughout my life. There are not
sufficient words to express my gratitude for He has enabled me to give special thanks to
Sir Sajjad Ali, SALAHUDDIN KHAN, am ZOBIA & sir TANVEER with whose help and
continuous guidance I am able to accomplish this report. I would also like to thank all
the employees of BOP for their cooperation and guidance in different phases of this
report.
I am very grateful to those following persons who assisted me in the preparation of this
report.

Table of Contents
Chapter # 01................................................................................................................................ 6
1.1 Executive Summary:.............................................................................................................. 6
Chapter # 02................................................................................................................................ 7
2: Introduction............................................................................................................................. 7
2.1 Objectives of studying the organization............................................................................7
2.2
2.2.1

Background information.................................................................................................8
Banking history in Pakistan..........................................................................................8

2.3 Companys Background.....................................................................................................8

2.3.1 History and Nature of BOP..............................................................................................8
2.4

Branches of BOP............................................................................................................. 9

2.5 Introduction of Bank of Punjab Main Branch Sahiwal.......................................................10

2.6

Vision and mission statements......................................................................................12

2.6.1 Vision statement............................................................................................................ 12

2.6.2 Mission statement....................................................................................................12
2.7

Core Values of Bank of Punjab......................................................................................13

Chapter # 3................................................................................................................................ 15
3 Operations of business.......................................................................................................... 15
3.1

Organizational Hierarchy Chart....................................................................................15

3.2 Branch Hierarchy chart.....................................................................................................16

3.2.1

Hierarchical View of Management of SAHIWAL branch.............................................17

3.3 SWOT analysis................................................................................................................. 18

3.3.1 Strength......................................................................................................................... 18
3.3.2 Weakness................................................................................................................... 19
3.3.3 Opportunities............................................................................................................. 21
3.3.4 Threats.................................................................................................................... 21
3.4 Marketing mix strategies of BOP......................................................................................22
3.4.1.1 Products strategy....................................................................................................22
3.4.1.3 Pricing strategies....................................................................................................26
3.4.1.4 Promotional strategies............................................................................................27
3.5 Competitors Strategies.....................................................................................................27
3.5.1 Major Competitors...................................................................................................28
3.5.2 Market Shares in terms of Deposits.........................................................................29

Chapter # 04.............................................................................................................................. 30
4 Learning as an internee.......................................................................................................... 30
4.1 Duties assigned to me in different Departments:..............................................................30
4.1.1 Accounts opening department..................................................................................30
Major Deposit Account Products.........................................................................................30
4. 1.2 Deposit and cash department work and contribution................................................35
4.1.3

Clearing Department...............................................................................................36

4.1.4

Remittance department and working.....................................................................36

4.1.5 Account department.................................................................................................37

4.2 New Knowledge Acquire................................................................................................38
4.3

Identification of problems..............................................................................................39

Environment and culture of bank.................................................................................39

Technological Advancements......................................................................................40

Training & Development..............................................................................................40

Job Advancements......................................................................................................40

New Products Introduction...........................................................................................40

Incentive Schemes......................................................................................................41

4.4

Impact on my Career:....................................................................................................41

5 Recommendations.................................................................................................................. 42
6 References............................................................................................................................. 45

Chapter # 01
1.1 Executive Summary:
The report is inevitable to illustrate the internship that I did in BANK OF PUNJAB
RASHID MINHAS ROAD SAHIWAL...My internship programme period was from 9 th July
to 3RD August.My working timing is from 9:00 am to 5:00 pm but in Ramadan,my working
hours are from 8:30 am to 2:00 pm. There are five departments in this branch.During
my internship,I have

been worked in account opening department,accounts

department,clearing and remmitance department under the supervision of Sir Tanveer

and Mam Zobia.

In this report I discuss my all activities which I have done in bank.This report consists of
three chapters.
In

the

first

chapter,I

will

told

about

the

objectives

of

studying

the

organization,background of banking,history of BOP,vision statement,mission statement

of BOP, core values of BOP.In the 2 nd chapter whose name is operation of business.i will
tell you about the hirarcy level of all banks,hirarcy level of BOP Rashid Minhas
road,Swot analyses of organization,marketing strategies which consist of 4ps
(price,product,place,promotion),competitor strategies,and and explain the department in
whch I have worked.In the last chapter,I will told you about the all working as a internee
that what I have done there and what I have learned from bank.All my experience will
be given in this chapter.

Chapter # 02
2: Introduction
2.1 Objectives of studying the organization
The major objectives to studying the organization are
The first objective of doing the internship in the bank of Punjab is that this internship is
very necessary for my MBA degree and I also want to know about what is banking and
how the banks provide facilities to people and know the financial techniques which are
used for development of business. I also want to know the different process and
procedure those are used in the banks to facilitate the customers and to provide
different kinds of services to the customers.
I also want to know that what types of facilities are provided to the customers in the
different department of banks like Cash Department, Clearing Department, Account
Opening Department, Remittance Department, Agriculture Department etc.The main
purpose of this internship is to apply all my concepts in the practical life that I have in
my mind and I have learnt from my studies.
I also want to know the different rules, regulations and policies that are imposed by the
State Bank of all banks because State Bank is the Central bank and monitors the
performance of all banks that is why State bank is called the bank of all banks. I also
want to compare the work of this bank with the other banks and all other financial

institution. I want feel the life of banking employees that in which ways they are
performing their jobs. I want to see that what types of benefits are gaining by the
banking employees as well as customers and hat types of problems they face in the
banking life.
I also want to know how to serve the customers specifically when we are coming in the
practical life after completing our studies specifically in banking sector and how to beat
the different situations and problems which occur during the work because when we are
students we have no experience about the job and how to deal with problems that are
occur during the business and job. So to understand all these things, I have done this
internship.

2.2

Background information

2.2.1

Banking history in Pakistan

Pakistan was created in August 14, 1947. After the independence, the

scope of banking has not been increasing continuously in the Pakistan because
Pakistan has lack of financial resources that are requiring for this. Bank Robbery was
also done in the National bank that is also the main reason of less scope of banking in
Pakistan. Banking services were available in adequate areas constituting Pakistan.
It was agreement between two countries that Reserve Bank of India should carry on to
operate in Pakistan's country until 30 September 1948 and notes that the Indians
continue to be legal tender in Pakistan until September 30, 1948. Unfortunately,
relations between the two countries became tenser immediately after independence; the
banking sector was mainly in the Indian lands which immediately began to move their
offices and assets in India. That is why. Many banks were closed. Those banks which
have not opened, not doing business in force.
Only Habib Bank, which moved its headquarters from Bombay to Karachi Asia
Austral Bank, was another bank, which was in existence on the territory of Pakistan at
the time of independence. Despite efforts by the government of Pakistan, no way heady

could be made on that name and the Reserve Bank of India was in no mood to help the
country again.

2.3 Companys Background

2.3.1 History and Nature of BOP
BOP was made in 1989 and it is found by Mr. Nawaz Sharif.BOP started its
operation with the inaugural ceremony of first branch of Lahore which is situated in 7Egertion road on November 15, 1989. Mr. Nawaz Sharif who was the Chief Minister of
Pakistan performed the inaugural ceremony.
.It got the position of scheduled bank in 1994. BOP is a commercial bank. It
provides many facilities to the customers. It consists of 280 branches all over the
Punjab. The Bank offers all banking services such as deposits in national currency and
customers in foreign exchange, money transfers, as well as achievements in business,
commerce, industry and agriculture.
Bank of Punjab plays very important role in the national economy through
mobilization is still available local resources, promoting savings and providing funds for
investment. The Bank offers attractive rates of tax on all deposits, open accounts in
foreign currency and foreign exchange processing, such as imports, exports and
remittances, finance, trade and industry needs for capital and money market operations.
The bank of Punjab has been played a very important role in the progress and
national prosperity. With the passage of time, BOP has taken a lead from others banks

2.4

Branches of BOP

Branches of bank of Punjab spreads everywhere in the Punjab, Pakistan. There are
total 293 branches of Bank of Punjab. The first branch was opened in Lahore in 1989
now total number of branches in the Lahore are 64.In the Faisalabad city, total number
of BOP Branches are 34.in Multan 60 branches, Gujranwala 43,Sahiwal 02.It means
BOP branches are spread everywhere in Punjab. Some branches of BOP are also in
Sindh like in Karachi, there are 05 branches of BOP etc.The Head Office of BOP is
situated in Lahore. In the big cities, regional offices of BOP are also located within the

main branch. In Sahiwal, Regional Office of BOP is also located in the main branch of
BOP in which I have been working.

2.5 Introduction of Bank of Punjab Main Branch Sahiwal

This Bank of Punjab branch was opened in 26 March 1990.It is situated in the region of
Sahiwal and the region code is 18.It is situated at the Rashid Minhas road. It is the main
branch of Sahiwal. Bank of Punjab is the government bank and it facilitates many
Government department as well as private business. The branch code of this bank is
0012. The regional office of BOP is also situated in the same building.
BOP Sahiwal provides many facilities. In the starting it was providing the facilities of
collection of cheques and utility in Sahiwal but after this BOP Sahiwal was offering the
lockers, treasury and trade finance facility to the customers in this branch. In present
bank of Punjab provides many services like Retail Finance, Retail banking, Agriculture,
Corporate banking, Commercial and Payment services in this branch.
In the starting, its main customers were Tehsil Municipal Association, Govt College for
Girls and Boys, Different Government Schools. Today Bank of Punjab Sahiwal has
almost 11000 above Govt accounts and also has many private institution accounts.
Today the main customers of bank of Punjab Sahiwal is Tehsil municipal association,
Government college for girls, Government Post Graduate College,Itefaq sugar mills,
Vocational Training Institute,Chenone,Azan Height, High Career College, Government
High School, Government High School 96/6-R,Government High School 89/6-R and all
Government schools that are situated in the Sahiwal region. In 2012, the main accounts
in the BOP Sahiwal were DPS College & school accounts but in the starting of 2013,
these accounts were shifted into Faisal bank, Sahiwal.
The bank of Punjab also provides funding to the customers for investment purposes.
Bank of Punjab offers different kinds of accounts for different purposes. All the accounts

are for the different purposes. Some are current Accounts and some are savings
accounts.BOP Sahiwal introduces different types of accounts to facilitate the customers.
Bank of Punjab Sahiwal offers a new facility of Behtareen Munafa Account (BMA) to the
customers. It is best saving account. This type of account provides profit onto daily and
monthly basis. The percentage of profit is varying with the amount. If the amount is 05
lacks than it provide 6% profit per month but if the amount is greater than 01 million than
the profit percentage is 7%.So BOP Sahiwal offers new facilities to the customers with
the passage of time to facilitate and attract the customers.
BOP also offers different kinds of loans for different purposes.BOP Sahiwal offers the
facility of Car Leasing Scheme, Yellow Cab Scheme, Apna Ghar Scheme, Advance
Salary personal loan, Motor Cycle Scheme, Cash Finance, Aashiana housing scheme
etc.All these facilities are offered by BOP Sahiwal.BOP Sahiwal also provide loans to
the farmer for agriculture purpose.BOP gives tractor to the farmers on installments.BOP
also offers different types of facilities for agriculture purposes.
So Bank offers all banking services such as deposits in national currency and
customers in foreign exchange, money transfers, as well as achievements in business,
commerce, industry and agriculture. Bank of Punjab indeed entered a new era of
science of the nation under experience and professional hands to control.

2.6

Vision and mission statements

2.6.1 Vision statement

To be a customer focused bank with service excellence.

2.6.2 Mission statement

To exceed the expectation of our stakeholders by leveraging our relationship with the
government of Punjab and delivering a complete range of professional solutions with a
focus on program driven products and services in the agriculture and middle tier
markets through a motivated team.

2.7

Core Values of Bank of Punjab

There are many values that are celebrated by BOP main branch, Sahiwal.

These values are

Optimistic
Bank of Punjab main branch Sahiwal has positive outlook for future.BOP is always

hopeful that it will make progress in future and become a popular bank by providing
good facilities to customers.

Reliable
BOP main branch Sahiwal believes that its customers are best. BOP never wants

to

lose

its

customers

so

it

provides

latest

facilities

to

customers

and makes good relation with old customers and also attracts new customers.

Nationalistic

BOP is concerned about their people and land.

Customers

Customers are the first priority of the bank of Punjab.BOP always gives preference to
the customers rights.

Forward looking
BOP main branch Sahiwal always expects the best outcomes for the customers. It

always looks forward that how to satisfy customers needs in the future.

Reward and recognition

BOP gives rewards to the highly performed and talented employees for their motivation.

Professional
BOP main branch Sahiwal is passionate about giving world-class services to

the customers.

Respect

BOP gives respect to customers as well as all the employees. It means bank of Punjab
gives respect to all stake holders that are associated with it.

Caring
BOP has true concern for well-being and also caring for the success of the

colleagues and customers. BOP is interested in solving the problems of people. It is

honest and always engaged in dealing the customers.

Profitability

BOP constantly improves facilities for their stakeholders. People can get profit by
doing investment into the different projects that are offered by the bank of Punjab. So
bank of Punjab increase the profitability for the stakeholders.

CSR

Bank of Punjab do corporate social responsibility to improve the lives of society and
community in which bank of Punjab operates.

A
D
d
o
B
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C
tiv
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x
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s
Chapter # 3

3 Operations of business

3.1

Organizational Hierarchy Chart

3.2 Branch Hierarchy chart

Branch manager

Operations
manager

Credit

Remittance

Agriculture loan

Short term loan

Foreign Trade
Import/export
Account
Advances
opening

3.2.1

Hierarchical View of Management of SAHIWAL branch

There are 10 employees in BOP Rashid Minhas road branch where I did my internship.
The branch was headed by Branch manager Mr.Sajjad Ali. The flow of responsibilities
and designations are shown in managements hierarchy.
Branch Manager

(Sheikh Sajjad Ali)

Operational Manager

(Ghulam Mujtaba Shah)

Credit

(Rashid Ali)

Remittances

(Mohsin Ali)

Agriculture Loan

(Hussain Ali)

Short term Loan

(nadir Khan)

Import & Export

(Ifthikhar Hussain)

Advances

(Fateh Sher)

Foreign trade

(Sobia Nisar)

Account Opening

(Babar Tayyab)

3.3 SWOT analysis

3.3.1 Strength
There are many strengths of BOP main branch, Sahiwal which lead it toward
success and progress.

Branch network of BOP

BOP consists of many branches into different well known and commercial areas with
small distance to facilitate the customer any time and that customer can not face any
problem to reach the bank. People can easily approach the bank into different
commercial areas. For example, Rashid Minhas Road Branch is being situated in
Business and commercial hub of SAHIWAL as big volume in trade.

Professional and friendly employees

The employees and banking officers of Bank of Punjab Rashid Minhas road are very
hardworking employees and considered as able professionals. They offered a local
touch and flavor in accordance with their targeted segments. I have observed that they

are very sincere with their work and with their co-officers. They deal with customers and
clients very friendly. If strange person see them, he will think that they are close friends.
They are listening the problems of their customers and trying to solve the problems.

Co-operation

The employees of BOP main branch Sahiwal are not selfish. They are very cooperative with their co-officers. If anyone is on the leave than other can do the double
work happily? They share all information between them. They help new employees to
do work. When I was in the BOP Sahiwal, all of them helped me in doing my work.

Good security system

BOP main branch Sahiwal has good security system. They have placed cameras
within each department and also arrange a large numbers of security guards for security
of bank. Passwords are applied on each system. No one can easily access to these
systems. Only authorized persons can access to these systems and information.

Good facilities for employees

BOP main branch Sahiwal has offered good facilities for employees. Air condition
rooms are available for them, peaceful environment is provided to them.BOP has
offered many rewards for employees. Cash prizes are given to them on their good
performance. By doing this, employees are motivated and do their work with great
interest.

ATM facility

BOP main branch Sahiwal has ATM facility which is its great strength. Due to this facility
people can withdraw money 24 hours of the day.

Quick credit services

BOP main branch Sahiwal has provided quick credit services to their clients and
customers. This facility is available at all branches of bank of Punjab. Because banking
manager co-operate with the person who is coming for taking a loan from the bank.

Well reputed online services

BOP main branch Sahiwal has provided best online facilities to the customers. They can
easily do transactions. They can receive or send money very fact. Due to this system,
Remittance department is working very well and efficiently in transferring the funds to
the people.

3.3.2 Weakness
There are many weaknesses that are affecting the BOP.

Burden of work

I have analyzed during my internship, that there are great burden on the employees
because the staff is very small. There are only 5 or 6 persons who deal with people so
large burden is on them. Due to this Burdon, sometime they feel irritation from the work
because sometime there is rush in bank and people are not handled by them. Every
customer wants that bank employees give preference to his or her work first, so
sometime problem is occurring due to burden of work. Sometime banking officers of
BOP main branch Sahiwal was telling a lie with the customers.

Small and limited building

Another weakness of BOP main branch Sahiwal has a small building. The area is
very limited. All the departments are emerging together. Work is not properly done due
to limited area. Sometime when there is rush of people than undisciplined environment
is created which divert the attention of employees from the work.

Lack of Furniture

In the BOP main branch, Sahiwal, there is lack of furniture due to small and limited
working area. Customers and clients are standing during taking their work from officers
that is not looking good.

Less advertisements

BOP main branch has been offered many products and services to the customers
even than others commercial banks, but no advertisement has seen on electronic
media. Through electronic media, people can easily aware from the new products and
services but in BOP main branch Sahiwal, there is lack of advertisement on electronic
media.

HRM department

Human resource department is not working well now days because there are many
vacancies to whom they should be filled but no progress has been seen during my
internship. If they hire any person for this job then they do not select him on merit

bases. They hire such staff that is not suitable for the job but to fill the vacancies, bank
hires them for the job.

Working of system is not good

The systems of the bank are not working well. During the working hours, the sites of all
work are sometime blocked and not connected with the system of bank. Due to which,
many problems occur.

Telephone problem

The PTCL connection of the bank of Punjab Sahiwal is not working well. If the telephone
is not work, than all employees use telephone which is placed in the manager room that
create undisciplined environment? Customers are unable to contact with the banking
employees if they are in the areas that are far from the bank.

3.3.3 Opportunities
There are many opportunities for BOP Main branch, Sahiwal.

Satisfy dynamic consumer needs

BOP main branch Sahiwal has made significant inroads in its entire service spectrum.
A lot of products have introduced especially in Retail Banking (Agriculture side) and
people are increasingly becoming loyal to the bank and because of feasible
transactions. Optimum pricing and branding strategies of the bank are helping to make
customer feel secure and convenient.

Emphasize on IT

All the opportunities of the 21st century are to be availed in the information
technology. Information technology is the future of this dynamic world. Therefore BOP
should emphasize much on IT, especially on E-Banking. Bank can design a universal
account like other foreign banks, to enhance online facilities.

eposit increased

BOP has introduced a number of financial schemes including special Deposit

Accounts. These accounts have their unique features. During the last three years, BOP

deposits have been increasing @ 40%, which is a very healthy sign. Therefore, with the
commencement of new schemes there can even be a greater increase in its deposits

3.3.4 Threats

Adverse impact of difficult circumstances

Despite the difficult circumstances that confronted the banking sector in particular and
the country in general, BOP is still highly profitable. But, the facts cant be denied and
there might be an adverse impact of such situation.

Strong competitors

There are many strong competitors of BOP.BOP is facing a strong competition by its
competitors. The competitors offer many latest products and services to beat the BOP.
Businesses of all these Banks are growing at very high rate.

3.4 Marketing mix strategies of BOP

Marketing mix of BOP is successfully penetrating the key domestic markets
through strategic expansion and business diversification. We remain alive to the
challenges emanating from the developments in the global finance market. The
opportunities and

threats

engendered

by greater

deregulation

and

increase

expectations of customers. They give us the opportunity to make the best use of all
available resources which also include the new and modern technology to meet all the
challenges which company faces and will be face in future.
Core marketing of BOPs is focus for its asset base has been the middle and
upper business houses (including wholesales and manufacturers) that work in large
urban areas of Pakistan which are oriented towards the foreign trade companies. This
section contributes important revenues to the bank. The liability side remains focused
on the middle and upper middle classes, army persons, retired and government serving
people and middle size business houses.
From the benefits of the growing balance sheet size, this division is getting
energy and long term aim is to develop into the independent strategic business unit

(SBU).This would allow to the bank to gain, develop and keep specialized abilities and
increase our focus on serving the rising needs of the corporate customers.

3.4.1.1 Products strategy

Products and services
BOP main branch Sahiwal offers many products and services to
promote their business and also to help the customes.Customers can take benefits from
these products and services. This is the product strategy of BOP that they offer a large
number of products and services to fulfill the needs of customers and to attract the
customers. These products and services are always available for customers in BOP
main branch Sahiwal.
Consumers products

Saving Accounts

. Current or demand accounts

Fixed accounts

Savings accounts (PLS)

Profit and loss saving accounts cannot be opened by a business corporation.
These accounts can be jointly opened by the individual. These accounts can be opened
with a minimum balance requirement of Rs 200 or if a person want ATM card than
minimum requirement is near about 1000.The profit is credited on a half yearly basis. All
the account holders receive a debit card. There are no limitations on the number of
deposits and withdrawal made from the accouts.Profits is paid 6% to the person. I have
opened many PLS accounts during my internship.
Current and demand account
Current accounts are such accounts from which no zakat is deducted on the
account balance. These are non-interest bearing accounts. These have minimum
account opening requirements of Rs 200 or 1000.In addition to it, all current holders

receive a debit card and it is basically a zero rated deposit. I have opened many
current accounts during my internship without making any mistake. After all
requirements, I have got my work checked by supervisor.
Fixed or term accounts
These are the accounts which are deposited for a fixed time period and repayable
after the expiry of fixed time to the customers. The people who want to have save
investment due to excess of funds, so they deposit the amount in the fixed account.
The rate of such type of deposit is higher than the saving bank accounts. The rate of
interest given to depositor varies with the amount that is deposit. The rate of interest
is higher for longer time period or lower for shorter time period. The cash reserve
against this deposit is very low because there is no fear of withdrawal of money
before the fixed time.TDR is the example of fixed accounts.

Finance products
1. Agriculture Schemes
2. Business Promotion Finance Schemes
1. Agriculture Schemes
There are many agriculture promotion schemes provided by BOP.

Kissan Dost Agricultural Finance Scheme

Kissan Dost Tractor Finance scheme

Kissan Dost Aabiari Scheme

Kissan Dost Mechanization Support Scheme

Kissan Dost Farm Transport Scheme

Kissan Dost Eslah-E-Arazi Scheme

Kissan Dost Live Stock Development Scheme

Kissan Dost Live Stock Scheme

2. Business Promotion Finance Schemes

BOP Quick Cash

BOP Car Loan

BOP Aashiana Scheme

BOP Advance Salary Personal Loans.

BOP House Loan

BOP SME Loan

BOP House Loan for Federal Government.

Services
These are the services provided by the BOP.

ATM Facility

Letter of Credit

Pay Order

On-Line Banking

E-Banking

Debit Card

Consumer Financing

Agriculture Financing

Corporate Financing

Commission free Remittance

Demand Drafts

Collection of Utility

Lockers Facility

Xpress money

Western union

Aftab express.

Easy pay

3.4.1.2 Placing strategies

BOP has opened 293 branches in all commercial areas of whole country.BOP
use a strategy that it opened its branches in different regions where people can easily
access to this bank at the time of need and emergency. In all these branches, all the
facilities of product and services are available to customers. BOP has opened number
of branches into different areas. BOP not only opens the branches in urban areas but
also in rural areas to facilitate the people who are living in rural areas and have not easy
approach towards commercial areas.
3.4.1.3 Pricing strategies
BOP has used such pricing strategies which attract the customers. There
are many strategies that promote their business. These are

Before some time, when customers do online money than they pay charges on
each amount. That charges are 166 rupees when the amount is 25000 or above
than 25000.But now BOP has finished these charges when the amount is 25000
or less than 25000.

After 25000 rupees, charges are applied that are 0.3% of the amount which
person is sending. But now BOP main branch Sahiwal also reduces these
charges. Before this, charges on 100000 amounts are 300 rupees but these
charges are reduced to 200 rupees only. It means when the amount is above the
25000 rupees than only 0.2% tax is applied on the amount.

BOP main branch Sahiwal also uses another pricing strategy. When a person
sends money through online service and if he is the account holder of the bank
and also sending money into the account so no charges are applied even the
amount is greater than 25000 rupees.

BOP main branch does not charge any amount when a person opens new
account. For opening an account, initially amount that the person deposit into the
account will remain into the account of account holder. No tax will be deductive
from this amount.

BOP main branch offers only 5 rupees charges per cheque.

BOP offers attractive amount of profit on different type of investments and

accounts.

BOP main branch offers many accounts in which no money is deduct from the
account.

No charges are applied when people take money through Xpress money,
Western union, Aftab express.

3.4.1.4 Promotional strategies

BOP main branch Sahiwal also uses many promotional strategies to
promote their business.

BOP banners are placed at different corners of each city on which products and
services of BOP is given in detail that attract their customers.

BOP deals with the customers very well and told them about the goods and
services with detail. By doing this they promote their business.

BOP gives rewards to the employees of the bank to promote their business.

They attends the calls of every customer and solving their problems. By doing
this, customers become impressed and their business is also promoted.

BOP provides quick services to customers that are also attract the customers.

3.5 Competitors Strategies

Every organization is the competitor of other organization in the marketing
industry. But in banking, competitor is the one holds the stake, and which can
affect the internal customers, external customers, revenues, expenses and
execution of the company strategies.

3.5.1 Major Competitors

HQ

Assets

Profits

Profit

as

%International

of

Institution

$ Millions $ Millions Assets Equity Rank

NATIONAL BANK

Karachi

7,051

1.4

0.0%

0.9%

195

Karachi

5,807

-9.2

--

--

220

MUSLIM BANK Karachi

3,407

5.4

0.2%

6.7%

307

UNITED BANK

Karachi

2,766

-50.9

--

--

331

ASKARI BANK

Rawalpindi547

7.1

1.3%

17.5% 445

OF PAKISTAN
HABIB BANK

BANK AL HABIB Karachi

375

4.5

1.2%

23.3% 484

UNION BANK

Lahore

344

2.2

0.6%

9.7%

METROPOLITAN Karachi

207

3.4

1.6%

22.9% --

495

BANK
PRIME BANK

Lahore

204

2.9

1.4%

11.9% --

All the banks which are given in the tables are the strong competitors of BOP. These
banks are not in the market with advanced technology and up to date product line to
compete with banks well equipped with new technology, like MCB. Infect MCBs
competitors are not these big, old and unprofitable banks but the new emerging banks
like Union Bank and Alfalah Bank.

3.5.2 Market Shares in terms of Deposits

Banks

Deposits(in

Overall

Domestic

thousands)

Market

Banks Market Market

Shares

Shares

Bank Alfalah

239509391

7%

8%

Askari Bank

131839283

4%

4%

MCB Bank

257461838

8%

8%

10%

11%

United

Bank 335077873

Foreign Banks
Shares

Limited
City Bank

63103884

2%

42%

Chapter # 04
4 Learning as an internee.
I did my internship at Bank of Punjab Rashid Minhas Road Sahiwal for eight months
duration and the departments in which I have worked during this time are as follows:

Account opening department

Remittance department.

Cash and loan department

Clearing department

Accounts department

4.1 Duties assigned to me in different Departments:

4.1.1 Accounts opening department

I have worked in account opening department for one week and I have seen
that a major portion of deposits are contributed through this Department at RASHID
MINHAS branch of BOP. In this week I have learned these things.
Major Deposit Account Products
Current Account (CD)
Current accounts are such accounts from which no zakat is deducted on the
account balance. These are non-interest bearing accounts. These have minimum
account opening requirements of Rs 200 or 1000.In addition to it, all current holders
receive a debit card and it is basically a zero rated deposit. I have opened many

current accounts during my internship without making any mistake. After all
requirements, I have got my work checked by supervisor.
Profit Loss Account (PLS)

Profit and loss saving accounts cannot be opened by a business corporation.

These accounts can be jointly opened by the individual.

These accounts can be opened with a minimum balance requirement of Rs 200

or if a person want ATM card than minimum requirement is near about 1000.
The profit is credited on a half yearly basis.
All the account holders receive a debit card.
There are no limitations on the number of deposits and withdrawal made from

the accounts.
Profits are paid 6% to the person.

I have opened many PLS accounts during my internship.

Fixed or term accounts

These are the accounts which are deposited for a fixed time period and

repayable after the expiry of fixed time to the customers.

The people who want to have save investment due to excess of funds, so they

deposit the amount in the fixed account.

The rate of such type of deposit is higher than the saving bank accounts.
The rate of interest given to depositor varies with the amount that is deposit. The

rate of interest is higher for longer time period or lower for shorter time period.
The cash reserve against this deposit is very low because there is no fear of
withdrawal of money before the fixed time.TDR is the example of fixed accounts.

Basic Banking Account (BBA)

Basic banking accounts are current in nature.
This account was introduced by banks on an order by the State Bank of

Pakistan.
These accounts have not minimum balance requirements but initial deposit must

be Rs 1000.
Only two maximum deposits and withdrawals are allowed by cheque.
However, there are no restrictions on ATM withdrawals.
This is basically for students.

I have opened four such accounts during my internship in the BOP main branch,
Sahiwal.

Saving plus Account (SSA):

In this account there is a fixed deposit for one year. And the interest rate is double. For
different types of account the form filling requirements are different.
Business Tijarat Account (BTA):
This type of account is for the business people. For business transactions, people open
this account.
Method of Opening an account:
1 First we ask from the customer that what is the purpose of this account and why
you want to open this account and what is the source of income.
2 After this we tell the necessary documents that are required for this account.
3 When all the documents are complete than we ask what type of account you
want to open.
4 After this we fill the account opening form and fill all the data that is necessary for
the account
5 .After this we fill the SS Card.
6 After filling the card.we apply different stamps on the account opening form and
SS Card.
7 If the signature of person is difficult so no need of photographs but if the
signature are easy like in urdu,thumb impression than we place two

photographs.One photo places at the account opening form and other is at SS

Card.
8 If we paste the photographs than we place signature verified stamp,branch
stamp,copy receive stamp,all cheque stamp,account holder stamp and
photograph stamp.
9 But if the signature are difficult than we apply branch stamp,signature verified
stamp and copy receive stamp on account opening form and SS Card.
10 After this we take out different documents that are required for this account.We
take out NAB.For this,first we open the NAB website, enter the name of the
person in the find bar. The result will appear. We press the Ctrl + print screen and
place the image of the document on empty word page than take the print of this
Page.
11 After this we take out OFAC certificate.For this, first we open the OFAC website,
enter the name of the person in the find bar. The result will appear. We press the
Ctrl + print screen and place the image of the document on empty word page
than take the print of this Page.
12 After this we take out verysis and for this we write the ID card number of the
customer in the website of verisys and then press enter button. All information
regarding the person will appears. We take the print of this page and attach with
other documents.
13 After this we take risk assessment form,For this, we enter the name of the
customer, type of the account and number of the account which is assigned to
the customer than give the answer of all the questions. A risk number will be
appearing. The risk may be low/medium/high. For the students, risk is number 21
which means it is low.
14 After this we take out the checklists at which we tick that we have attached all the
necessary documents.
15 After this we are entering the data into the computer system at the website of
Talnet.

Method for entering data into the Computer System

After filling the account opening form and attach all documents, we enter data into the

computer system. For this we use Talent Software. First, I open the talent website, log in
the ID of bank officer then enter 10000001 and click enter then press 1 and click enter
than I entered all information which is on the account opening form. First, I have entered
the name, fathers name,address,CNIC number,occupation, category, telephone
number, resident or non-resident, country name, photograph options Code etc and then
click E.An entry number will appear and we write this number on the account opening
form with today's date.
Scanning SS Cards:
After entering data into a computer system, I scan the SS Cards that are attached to
Account opening form.
Method to issue checks books:
When a customer came into the bank and asked for a new check book, I
opened the cupboard, checked the check book and then removed the requisition from
the check book, wrote the issuance date on the requisition. Then I took a check
issuance register. First, I wrote the date of issuance than 1 st check number and the last
check number and took the signature of the receiver and wrote the initials of mine.
Security stationary register:
In this week, I have also learned that what things are included in the security stationary
register.
In security stationary register, we record

New check books

DD
CDR
Pay order, etc.

Check book security stationary register

When new check books are received in the bank then we enter and
record them in security stationary registers. I

record every type of check book

separately. e. g; PLS 25,CD 25,PLS 50,CD 50,PLS 100,CD 100 etc.

I wrote the date of receiving the checkbooks, the first check number and last check
number, the number of check books of the same type which are wrapped together in the
packet and the initials and signature of the receiver.
4. 1.2 Deposit and cash department work and contribution

In the second week of my internship, I have worked in the deposit department, in

this department I have performed the following activities:

Entering

information
Arranging

in

KYC
specimen

(know

your

customer)

signature

forms.
cards.

Inform customers about essential conditions under which the account will be operated.
3.2.1 Deposit slip
On this day, Sir Babar told me how to fill a Deposit slip. It is also called F23. it is used to
deposit cash, check, DD, CDR, Payment order in the account. On the deposit slip we
write the account number, account title of the account in which we have to deposit
money. We have to tick on account types options.After this we write cash in instrument
portion if customer wants to deposit cash in the account, otherwise if customers want to
deposit checks, DD,CDR,Payment order in the account so we write the number of
instruments, date of issuing instrument and the branch of the bank which issued this
instrument. We also write the date on which we fill this slip, branch step, the right
amount in figures and words, write the contact number of depositors, take depositor
signature and At this day, Sir Babar tick on the mode of collection.
4.1.3

Clearing Department

In this department, I have only placed different stamps on clearing checks. I

have placed signature verified stamps on signatures, Transaction number stamp on
transaction number and transfer stamp on all cheques.I have also learned about the
different types of clearing in this department.

4.1.4

Remittance department and working

In the fourth week I have worked in this department and learned different things. In the
security stationary register, following items are included.

Check books

Pay order

Demand draft

CDR, etc.
We have to operate with DD, CDR and pay order in remittance department.

Online money facility

I have also learnt that how to fill an Online Slip which is also called F33.Online
slip is used to send money from one bank branch to another branch of the same bank in
any city immediately. In this process, computer system networking plays a very
important role.
In the Online slip, in the applicant detail portion we have to write the name of the
person who sends the money either through his or her account or either through his ID
card. Then we write the address and contact number of sender. After this portion we
write the name of the person to whom we send money, which is also called beneficiary
name. Then write the account number, address and city of the person where we send
money in beneficiary detail portion and write the city or branch code of the bank where
money will draw out. We also write the amount in figure and words. Then we write the
date on which person is sending money. We also tick the online option in types of
remmitance.BOP Online is the type of remmitance.We also chooses the type of
currency in which we send money. At the end of form there is column in which write the
amount which person send and all the extra charges are written which are applied on
the amount. And we take the signature of sender at two places. At the end of the form,
there is a customer copy in which we write the amount and extra charges, name of
beneficiary, type of remittance, date of sending money and the place and branch code
where the money is drawn out.

Requirement for if the person is account holder or not a account holder of the bank from
where he is sending money.
Express money
This is my 5 th week at the Bank of Punjab. At this week, officer Babar Shah told me
about the Xpress money. Express money is also called the UAE and UA exchange.
When a person sends some amount from one county to another country to his or her
relatives then his or her relative can received money through Express money. Express
money require 16 digits pin code.
Western union
Western union is a company which deals with foreign companies. By this you can
send or receive money from foreign countries and international companies.

Every company offers a specific pin code.

Western Union has 10 number digits.
ID card copy of the receiver is necessary for it.

To use it, you have to insert all information about the sender and receiver and all
information which is on the receiver ID card. It must be included ID card number, expiry
date, issuance date, sender name, receiver name, address of both persons,etc. (Each
and every information about them is required)
4.1.5 Account department

On the last week, I have worked in accounts department. On this week BOP
officers allowed me to work on the system. In this week, I posted the salary of DPS
employees and TEVTA employee. I think that to do work on the system is very risky
because if any mistake occurs then it may cause a serious problem for the bank and
also for the person who is working on the system.
Lockers

I have also learned how to operate the lockers. First of all customer have to fill SS
card and a form for taking a loan. After all formalities a customer key is given to
customer.
Charges of lockers
Annual charges of small locker=1000 RS
Annual charges of medium locker=2000 RS
Annual charges of large locker=3000 RS

4.2 New Knowledge Acquire

Being a part of this organization, it was a very good experience for me, I
observed and done the things at professional level being a student and this was a good
part of merit learning

and I applied my all theoretical

part on an official level.I

experienced the work in almost all departments of the bank, and get something new in
all different departments. The behavior of my supervisors, top management, lower
management and all the staff was so much cooperative and responsive. My supervisor
was a banking officer Zobia Khan, she gave me the chance to learn the things and
encouraged me to take the initiatives, and she always emphasis on doing things by own
your hand and not to depend on others.
Beside this I also learn that:

To deal well with the customers of every mood, patience was required which I
learnt.

I also learnt customers first idea. My seniors always directed me regarding the
importance of the customers as valuable assets.

The culture of an organization was very professional and there was a strong
cohesiveness between the employees.

The organizations activities are centralized and strong communication lies in top
management.

The internship with such a fine organization improved my interpersonal skills as

well. Time punctuality and observing responsibility were the two main essence of
my personal attainment through this internship.

Whenever I took initiative for work, my supervisor always encouraged me. He

used to pat my back and this gesture of recognition, boosted my confidence.

4.3

Identification of problems
During the time period of my internship in bank of Punjab I observed some

minor problems and issues in the bank. But the most important and major problem
which I fell is the environment or you can say the culture of the bank

Environment and culture of bank

BOP is a government and old bank so the employees who are working in BOP main
branch Sahiwal are old in age and very less amount of young employees are working
there. The environment is not modern and clean in the BOP main branch Sahiwal than
other private banks like Al-falah bank; Standard charted bank etc.Because private
banks keep themselves clean and use modern equipment to attract the customers.
Thats why I have observed during my internship that customers are not satisfied with
the environment of Bank of Punjab, Sahiwal especially in small cities like Sahiwal,
Depalpur etc.Old employees are working in the banks from many years and they
reached at the upper level post so there is very less chances and opportunities for the
newly graduate students to get jobs in the banks. If by chance any one gets a job, he or
she leaves the job because they not feel comfortable in the environment of bank due to
old people. Because old people do not understand their feelings and thinking.
So according to me, environment is the one of the biggest problem of Bank of Punjab
which I have seen and felt during my internship.

Technological Advancements
Bank of Punjab main branch Sahiwal has equipped with latest IT tools and

facilities that being used in the banking industry like ATM facility, fax machine, printers,

photocopy machine, latest and faster computer systems and good connectivity facilities.
But it has seen that when these facilities are required at the time of work, many failures
appear in different devices and machines. The main problem is of connectivity. It
remains offline with the main server that creates trouble for the customers. Express
money website remains offline most of the time in the BOP main branch Sahiwal.

Training & Development

There are valuable training centers of BOP at Lahore and Multan. The

employees of BOP main branch Sahiwal get training from the Multan center. The
problem is that employees do not get training at the regular basis. Sometime they get
training or sometime they do not. So it creates a problem.

Job Advancements
There is no job advancement procedure for junior executives and lower staff

that have recently joined BOP main branch Sahiwal. The problem that I was observing
is that lower staff should be trained about the working of bank. Promotion should be
given to the junior executives on the basis of their performance.

New Products Introduction

Bank of Punjab main branch Sahiwal has a large variety of financial and

other products for the customers and to compete with their competitors. However the
main problem that I seen that BOP is not offering latest and innovative products like
other banks in the Pakistan. For example, Standard Charted bank introduced a
depositing machine. It is a machine that can be used by consumers to deposit money
at any time of the day but BOP main branch Sahiwal is offering not such products so it a
problem.

Incentive Schemes
BOP main branch Sahiwal gives a number of incentives to its

employees like personal loans at small scale but they only provided such loans to only

those employees who are at high ranks. There is no major incentive scheme for
employees like scholarship for higher studies of those employees who want to get
higher education. That is the main Problem of BOP main branch Sahiwal.

4.4

Impact on my Career:

I believe I had the best moments of my life working with the BOP. This was my first
experience in a highly fast organization. My experience has helped me

In widening the horizons of my thoughts

Adopt a professional attitude

Provided me a platform for attaining my goals

And last but not least practical knowledge that I have gained of the studied modules at
my university.
By analyzing the financial statements of the bank, I came across to know that it is one
of the most growing banks in the subcontinent. Now they should end to some extent to
cope the current competition and for the best progress in the banking sector. And as an
internee you can easily get practical experience of the banking sector because every
employee of this branch is very supportive. I would just like to conclude this report with
while hearted prayers for BOP and its team

5 Recommendations

Delegation of Authority

Bank should be given authority to the employees and they should be asked for
their responsibility. The sense responsibility in employees mind is one of the most
important factors in the success of any organization .

Performance Appraisal

During my internship, I have felt that the performance of employees is very less. They
did not work properly in the bank. The manager should harshly check the performance
of employees. Employees should be awarded according to their performance.Insentive
and other rewards should be given to them for motivation.

Inter Departmental Transfer

I watched during my internship that the employees of BOP have worked on one seat on
which they were recruiting. By doing this, their motivation level decreased and they not
work properly. So you have to change the nature of their job. Varieties of jobs should be
offer to them. By doing this, their motivation level become high and their skills also
enhanced.

Technological Advancements
Bank of Punjab should develop a modern connectivity architecture to

effectively maintain an online connection of the branch with other branches and also the
ATM link, which may include using modern technologies like fiber cables, routers etc.
Also backup links should also be developed,
Also a proper IT department should be established in all branches, with professional
having the knowledge to maintain a secured connection with other banks. Also
scheduled backups of data should be done within the bank.

Innovative Products
BOP should introduced new and innovative products for the customers just

like other banks such as Citibank and standard charted bank introduced many products
for their customers. To introduce new products, special team should be developed that
should consist of professionals from different departments of banks to come with ideas.

By this process, large number of ideas generated for innovative products for the bank
that might give them the edge.

To Over Come Problem of Space and Furniture

BOP main branch Sahiwal has limited area in which it is working. There is

lack of furniture and other equipment that are necessary for bank. So I suggest that
special section should be built which should only hold the treasury functions of the
branch, salaries and pensions of employees. The bank should do these functions in the
evening time after the banking hours.Managment should also purchase the furniture
which are required for branch and arrange them in such a way which provide maximum
space in deposit department. There should be suitable sitting place for customers.

Need of Qualified Staff

In order to improve the functioning of the branch, required, qualified,

experienced, skilled and trained staff should be provided to branch. Especially

telephone operator, system operator, fax machine operator should be appointed.

Linkage with the Head Quarter

The head quarter of BOP is situated in Lahore.100 major branches of BOP should

establish a direct link with the head quarter through intranet and internet. By this,
functions and decision making of the management will become easier and convenient.
However management has a plan to connect all branches through WIMAX technology.

Marketing Policy

The BOP should take up various marketing strategies and promotional strategies to
promote the bank and banking products. The most important in my opinion is personal
marketing; it is the most effective of all when you think in term of branch level. But on
the whole organization level, they should arrange the seminar within the bank and
outside the bank. They should introduce various prizing schemes just like Allied Bank.
Karamad Scheme, Bank Al-Falah (monthly income earning scheme) and various others.
They should do more advertising through newspaper and media and through channel of
personal contacts.

Complaints of Customer

There should be an information counter to give the information to the customers

and also receive the complaints of the customers about the problems which they face.
In the bank of Punjab main branch Sahiwal, there is no complaint box available and not
any person is hired to hear the complaints of the customers. Manager can hear their
complaints but every person cannot go to the manager for the complaint because they
feel hesitation. So I recommend that management should place a complaint box in
which customer can put their complaint applications and should also recruit a person to
guide the customers when they face any problem and not able to manage difficulties in
banking matters.

Extended Banking Hours

It is recommended that banking hours should be extended up.BOP main

branch should extended the working hours till night to facilitate the customers in case of
emergency. Sometime people want to withdraw cash at night so bank should facilitate
the customers also late night. Some of the business community is unwilling to keep the
funds in their premises and want to leave it so main branch should extended the night
banking to provide the facilities to the customers.

6 References

1. Bank of Punjab. Retrieved September 3, 2012, from http://www.bop.com.pk/

2. BOP annual report 2011
3. State
Bank
of
Pakistan.
Retrieved
September
3,
2012,

from

http://www.sbp.org.pk/bulletin/2012/IBB-June-2012.pdf
4. Practice and Law of banking In Pakistan by Dr.Asrar.H.Siddiqi
5. Staff of BOP Rashid minhas road, main branch, Sahiwal.

6. (2013,augst,monday).

Retrieved

august

2013,

from

http://www.bop.com.pk/abousus.php: http://www.bop.com.pk/abousus.php
7. (2013,

august

tuesday).

Retrieved

august

2013,

from

http://www.bop.com.pk/abousus.php: http://www.bop.com.pk/abousus.php
8. mission statement. (n.d.). Retrieved augst sunday, 2013, from bank of punjab:
http://www.bop.com.pk/products/11
9. Mission Statement. (n.d.). Retrieved August Sunday, 2013, from Bank of Punjab:
http://www.bop.com.pk/products/11
10. mujtaba, s. (2013, august 1). organization structure. (Tahreema, Interviewer)
sahiwal.